“In the name of God, The Compassionate, The Merciful”
Refah Bank
Refah Bank’s Annual Report 2011-2012 (21st March 2011-19th March 2012)
.
Chapter One: About the Bank
1
Statement of the Bank’s Chairman of the Board & Managing Director
Under the grace of the sole God and sincere endeavor of the bank’s loyal personnel, the fiscal year of 2011-2012 (21st March 2011- 19th March 2012) has passed with prosperity & exaltation. We are confident that strengthening the enthusiasm of serving people in the mentioned year, will certainly be a valuable capital on support of which Refah Bank will experience great achievements in future. Particularly speaking, in the current circumstances that the Bank has joined the country’s private banks, a new horizon has been spread in the bank’s serving history. We are pleased that during the mentioned fiscal year (21st March 2011- 19th March 2012) the bank’s new Articles of Association has been approved in the 1130th session of CBI’s Monetary & Credit Council on 18/10/2011 in accordance with non- governmental banks’ Constitution and the greatest change has occurred in Refah Bank and the bank has become a private bank. Among Refah Bank’s measures in its move towards privatization during the mentioned year, issues such as: increasing the bank’s capital by Social Security Fund, revising the assets assessment & enjoying the benefits of tax non-payment law in the determined legal opportunity (subject of executive directive of note 78 of the country’s budget law) and above all registering different companies for the purpose of expanding activities can be pointed out. The bank’s privatization means entering the real world of competition, therefore in current circumstances Refah Bank is obliged to increase its productivity. Achieving this objective & succeeding in the current competitive environment depend on choosing a desirable planning and a prospective approach on one side and enjoying the cooperation & collaboration of all the bank’s components on the other side. We hope that under full favors of the Almighty God and with ever increasing motivation; more effective steps will be taken towards the arrogant objectives of the bank for better flourishing of Islamic Republic of Iran main goals.
Seyed Ziya Imany
Introducing the bank’s Members of the Board
2 Refah Bank’s History In tandem with execution of Article 39 of the country’s Budget Law of 1959 aiming to extend all banking services to people from all walks of life and especially to provide required facilities for workers and with an initial capital of IRR 400 Million out of the resources of Social Security insurances and for the purpose of receiving and paying the organization’s funds and using its reserves, Refah Bank has been established in 1960 & registered under number 7453. In the year 1979 concurrent with Iranian banks’ nationalization act, Refah Bank has been recognized as a commercial bank. In line with executing the approval of the high Administrative Council, Refah Bank has been classified under the shadow of Social Security Organization in 1993 while preserving its financial & legal entity. The greatest change of Refah Bank has took place in 2011-2012(21st March 2011- 19th March 2012) when subsequent to frequent follow-ups, the bank’s new Articles of Association has been approved in the 1130th session of CBI’s Monetary & Credit Council on 18/10/2011 in compliance with non-governmental banks Constitution and has been ratified in 57 articles & 25 notes.
Refah Bank’s Vision and Mission
Mission: Continuous endeavor for extending state-of-the art financial services to the society Vision: Refah Bank will be the symbol of extending distinguished services among local banks in the country in year 2021.
Refah Bank’s Strategies
Due to the bank’s privatization in 2011-2012 (21st March 2011- 19th March 2012) and since privatization means entering the real world of competition, Refah Bank compiled the bank’s strategies in the framework on “Refah Path” in order to increase productivity & success in the upcoming competitive environment.
Leadership & Effective Management: With the distinctive role of managers in the bank’s success and on the basis of joint mission & vision, top managers of Refah Bank will pave the way to increase the possibility of outer flexibility, to strengthen
3 the inner integration, to spread cooperation and empowerment of staff and ultimately to meet the bank’s excellent objectives.
Promotion of Human Capital: Refah Bank guarantees promotion of the quality of services and the clients’ satisfaction through empowering human resources and meeting their spiritual & materialistic needs and deems cooperation, collaboration and sympathy of human resources as a necessity in fulfilling “Refah path” strategy.
Optimum Competitive Cost: Refah Bank extends its services with the least cost and the most benefits to customers while adjusting the incurred charges and applying frugal manner & managing costs optimally. Move towards complete fulfillment of Islamic Banking: Refah Bank does its best to implement Islamic means and contracts more than before while reiterating on extending services based on the principles of Islamic Banking. Beyond time & place while enjoying virtual banking: Considering the important role of IT in obtaining competitive merits, Refah Bank has put promotion of core data systems as its key priorities & objectives. Promotion of the bank’s services & brand: Refah Bank tries to be placed in an appropriate national, regional & international level with publicizing its entity to the society and creating more cooperation with institutions and financial authorities. Refah Holding and expanding investments: To enhance competitive capability, Refah Bank tries to change into the form of a multi-purposed financial incorporation through strengthening and diversifying services and accomplishing the value chain of services.
Concerning the above, Refah Bank has planned to make some particular measures which include: attracting resources & increasing the bank’s capital to approach its position to private bank’s status and allocate the said capital in an optimal manner, financial transparency, paying more attention to expectations of the bank’s shareholders & beneficiaries, re-assessing the bank’s due debts, pricing the bank’s share and paving the ground for presenting such shares, preparing & collecting policies of providing & adjusting human resources & planning the structure of human resources appropriate to privatization necessities, making decisions on the status of retirement, amending the bank’s organizational structure and creating flexible organizational structure, redesigning systems of payroll and fringe benefits and revising the related directives and instructions, appraising the bank’s staff based on their performance, client orientation & making profit, moving towards completing the
4 package of services and responding to all needs & expectations of customers, socializing & training employees regarding the concept of bank’s privatization, organizing deficient branches and improving the branches network regarding their physical & geographical status, IT equipments &…, improving the status of pensioners, improving the status of electronic banking infrastructures especially core banking, selling surplus properties, establishing & registering subordinate companies, preparing the bank’s vision, mission & macro strategies of Refah Holdings and determining the strategies of subordinate companies with the approach of simulating the bank’s strategies in order to create value chain. Furthermore subsequent to the bank’s privatization, Refah Bank will pay more attention to attract commercial customers while maintaining its role to preserve the existing loyal customers with extending desirable & appropriate services to meet their needs. In this line, issues such as commercializing the bank’s branches, moving towards Corporate & Private Banking for the purpose of better wealth management and customizing the services for customers are among the bank’s key programs which incase of fulfillment will have great influences on the value of the bank’s share before entering Stock Exchange Market.
Refah Bank’s Organizational Chart
Refah Bank in a Glance Table (1): Refah Bank in a Glance Description Number
Number of the Bank’s Personnel 10,655
Number of the Bank’s Branches 1,078
Balance of the Bank's Total Resources (Billion I.R. Rials) 99,479
Balance of the Bank's Total Uses (Billion I.R. Rials) 101,323
Iran’s Map & Refah Bank’s Geographical Distribution of Branches
Refah Bank’s Main Services Refah Bank’s Special units: For the purpose of meeting the customers’ satisfaction and in order to extend desirable & appropriate banking services to different types of customers, Refah Bank has established special units which render the following services:
5 Special services for pensioners Typical commercial Unit 724 Round the clock Unit Refah Bank’s Foreign Exchange Services: Extending different services related to different kinds of foreign currency and local currency, import and export documentary credits and documentary collections in local and foreign currency Allocating foreign exchange credit facilities to the import of goods & services using short-term & mid-term credit lines Allocating foreign exchange credit facilities to the export of goods & engineering & technical services and implementing international projects Issuing different types of bank guarantees aiming to support exporters of goods & engineering & technical services and contractors of performing domestic massive projects in foreign currency and accepting counter guarantees issued by reputable foreign correspondent banks Opening different types of accounts including current, saving and term deposit in international foreign currencies and paying interest to term deposits based on international common rates Issuing payment orders of customers at the soonest possible time through correspondent banks Selling & buying different types of foreign currencies in common rates and providing customers with their required resources through branches in commercial free zones and Refah Foreign Exchange Company Issuing statement of account for holders of accounts in local and foreign currency in order to be rendered to embassies and other related authorities Extending counselor services to customers regarding foreign exchange & export issues through relevant banking professionals & experts Refah Bank’s internet Banking Electronic payment cards On-line (Hamrah) Refah card Receiving insurance premium of Social Security Organization employers Telephone bank On-line core accounts
6 RTGS (Satna): Real Time Gross Settlement Sahab system IBAN (International Bank Account Number) Electronic clearing room system (ACH) Electronic payment of bills Receipt of checks on the account of other banks’ online accounts in the same city through clearing system Refah Bank’s term deposit certificate Smart leasing safe box Allocating different types of credit facilities Issuing banking guarantees
Refah Bank’s Main Successes (Achievements in the year 2011-2012) Subsequent to receiving ISO 9001-2000 Certificate in 2001 by Refah Bank as the first bank in the Middle East, ISO 9001-2008 Certificate was also achieved from Tuv Nord Company by the bank in the year 2010 (21st March 2010-20th March 2011) and in 2011(21st March 2011- 19th March 2012) Refah Bank succeeded in extending the certificate for the second successive year. As the first Iranian organization, Refah Bank succeeded to obtain “Commitment to Excellence Certificate” from European Foundation for Quality Management (EFQM) institute. This certificate is specially honored to those organizations which have started their move towards excellence and by receiving such certificate Refah Bank is considered as a pioneer in excellence movement in the country’s banking system. Refah Bank was assessed by B.I.D. International Quality Institution in the year 2009 (21st March 2009- 20th March 2010) on the basis of TQM100BIDQC model and on different criteria such as quality orientation, client orientation, job satisfaction, efficiency of systems assessment, etc. and succeeded to obtain International Award of Quality Star besides receiving Platinum and Diamond Awards in the year 2010 (21st March 2010-20th March 2011) for improving the quality of its activities from the mentioned institute and subsequently succeeded to extend the same in the year 2011.
7 By assessing the clients' satisfaction regarding the process of extending services through public/state-owned institutes which is conducted by vice-presidency office per annum, Refah Bank has won the first place among bank and insurance group for the 8th successive year.
Refah Bank’s Social Responsibilities In line with carrying out social responsibilities, Refah Bank has made the following measures in the year 2011-2012 (21st March 2011-19th March 2012): Advising the executive directive in support of household jobs in order to allocate Qarz-al-Hassaneh facilities (for the amount of I.R.Rials 30,000,000) to applicants who are introduced by the province Work & Social Affairs Department Signing memorandum of understanding (MOU) with Imam Khomeini Charity Organization in order to receive the installments of allocated facilities to people under the support of the said organization Setting up fast breaking ceremony for Rail Road Sport Club in Velenjak Welfare & Training Complex Contributing for I.R.Rials 1,621,000,000 to the orphan and people under the support of Imam Khomeini Charity Organization Paying the healing charges of war life-scarified victims Contributing to physical & rehabilitation congress Contributing for I.R.Rials 50,000,000 to Hemophilia disease society Building schools in North Khorasan by financial contribution of I.R.Rials 2,700,000,000 Contributing fund for the freedom of prisoners of unintentional crimes for I.R.Rials 4,300,000,000 Contributing to poor students through granting 49 Refah gift cards, while each card contains I.R.Rials 200,000 Contributing fund for victims of famine in Somalia
Chapter Two: Human Resources
8 Due to the fact that human resources in Refah Bank enjoy the benefits of common sense, creativity and innovation, they are considered as the organization’s greatest asset and any promotion and improvement in technical and organizational systems are being performed by the help of human resources. As the obvious evidence of investing on human capital, training has a major role in improving the productivity of human resources. Training increases the efficiency & ability of working force and boosts potential talents on one side and paves the ground for employing superior and more qualified work force on the other side. While enjoying more than 48% human resources holding B.A., M.A. and higher academic degrees and with considering human resources as the organization’s most crucial asset as mentioned before and owing to the fact that an organization’s success depends on a group of trained & professional human forces, Refah Bank values training and invests on the concept of training to make sure that the employees have obtained their necessary skills in various training programs. In this line and for the purpose of continuing previous year’s policies, Refah Bank held 232 training topics through 833 courses in the year 2011-2012 (21st March 2011- 19th March 2012). It must be noted that 15630 personnel took part in these courses and have been trained for 316534 man/hours. Training man/hour per capita during the year 2011-2012(21st March 2011-19th March 2012) in Refah Bank was 30.
Table (2): The Structure of Refah Bank’s HR Regarding Educational Degree
(Since 2007-2008 to 2011-2012)
Pre- Post- M.A. and Total Year Diploma B.A. diploma diploma upper (persons) 2007-2008 729 3,380 1,498 4,404 234 10,245 2008-2009 631 3,424 1,862 4,447 255 10,619 2009-2010 542 3,481 2,137 4,517 274 10,951 2010-2011 459 3,359 2,120 4,593 292 10,823 2011-2012 404 3,134 1,956 4,821 340 10,655
Among 232 held training topics, 95 courses were held inside and 137 courses outside the bank. Total training man/hour and training man/hour per capita in the
9 mentioned year in comparison to the previous year showed 29% and 15% growth respectively.
10 Growth as Growth as Growth as Growth as Change (%) compared compared compared compared 2011-12 in 2007- 2008- 2009- Description with the with the 2010-2011 with the 2011-2012 with the comparison 2008 2009 2010 previous previous previous previous with 2007- year (%) year (%) year (%) year (%) 08
Total number of held training 753 951 26 754 -21 994 32 833 -16 11
courses
inside & & inside Number of held training topics 163 223 37 192 -14 330 72 232 -30 42 held held Number of trained work force 16,547 30,992 87 18,179 -41 18,702 3 15,630 -16 -6 (persons)
outside the bank the outside Total training man/hour 432,848 606,978 40 391,901 -35 245,063 -37 316,534 29 -27
Training courses courses Training Man/hour per capita 47 56 19 35 -38 26 -26 30 15 -36
Total number of held training 531 681 28 530 -22 615 16 559 -9 5 courses
nside the the nside Number of held training topics 51 74 45 77 4 112 45 95 -15 86
Number of trained work force 13,529 18,412 36 15,085 -18 15,734 4 14,776 -6 9 bank (persons)
Total training man/hour 289,192 350,404 21 323,961 -8 236,261 -27 284,428 20 -2 ining courses held i held ining courses
Man/hour per capita 31 33 6 29 -12 22 -24 27 23 -13 Tra
Total number of held training 222 270 22 224 -17 379 69 274 -28 23 courses
outside outside Number of held training topics 112 149 33 115 -23 218 90 137 -37 22
held held Number of trained work force 3,018 12,580 317 3,478 -72 2,968 -15 854 -71 -72
(persons) the the bank Total training man/hour 143,656 256,574 79 67,940 -74 8,802 -87 32,106 265 -78
Training courses courses Training Man/hour per capita 16 23 44 6 -74 4 -33 3 -25 -81
11 Table (3): Training Courses held inside & outside the bank (Since 2007-2008 to 2011-2012)
12 Developing Research In order to develop research and create motivation in personnel for performing tasks on the basis of research and for the purpose of enjoying the benefits of performed researches by employees who are studying, Refah Bank has established a mechanism to support research activities in the form of thesis, essays and books and has accordingly informed the personnel of the issue in the year 2011-2012 (21st March 2011-19th March 2012) and has financially supported the colleagues thesis in M.A. related courses.
Chapter Three: Mobilization & Utilization of the Bank’s Resources
Bank’s Resources During the fiscal year of 2011-2012 (21st March 2011-19th March 2012), the Bank’s effective resources and total resources has increased for 23.2% & 24.3% respectively. In the mentioned year out of the bank’s effective resources, 30.6% belonged to the current, 13.9% belonged to saving Qarz-al-hassaneh and 25.2% and 30.3% belonged to short-term & long-term investment deposit resources respectively. Table (5): Refah Bank’s Effective and Total Resources (Figures in Billion IRR)
(Since 2007-2008 to 2011-2012)
2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
Type of Account
Balance Balance Balance Balance Balance
the previous the year
resources resources resources resources resources
Growth in comparison in Growth to
% %
Share out of effective effective out of Share effective out of Share effective out of Share effective out of Share effective out of Share Current 16,389 38.5% 15,511 23.5% 17,517 30.5% 23,660 30.7% 28,998 30.6% 22.6%
Saving 7,784 18.3% 8,127 17.1% 8,940 15.6% 14,303 18.6% 13,173 13.9% -7.9%
Short-term 9,946 23.4% 13,099 27.5% 19,457 33.9% 24,291 31.6% 23,886 25.2% -1.7%
Long-term 8,425 19.8% 10,919 22.9% 11,490 20% 14,712 19.1% 28,757 30.3% 95.5%
Effective Resources 42,544 ---- 47,656 ---- 57,404 ---- 76,965 ---- 94,814 ---- 23.2%
Total Resources 53,756 ---- 50,854 ---- 60,628 ---- 80,048 ---- 99,479 ---- 24.3%
Bank’s Uses
13
By the end of 19th March 2012, the gross balance of Bank's uses has been 101,323 Billion I.R.Rials increased by 23.85% in comparison to the previous fiscal year. Among different economic sectors, the greatest uses have been allocated to the commerce, services and others sectors. Subsequently, Construction & Housing sector, Industry & Mine sector, Agriculture & Export sector shows the greatest share out of the bank’s total gross uses.
Table (6): Gross Balance of the Bank’s Uses in Different Economic Sectors (figures in Billion IRR) (Since 2007-2008 to 2011-2012)
Economic Sector 2007-8 2008-9 2009-10 2010-11 2011-12 Agriculture 2,989 3,665 3,354 4,690 6,868 Industry and Mine 9,643 9,521 8,508 12,332 13,687 Construction and Housing 11,947 12,652 13,065 21,265 27,247 Service, Commerce and Others 20,480 24,138 31,129 43,400 53,215 Export 97 64 53 122 306 Gross Total of Uses 45,156 50,040 56,109 81,809 101,323
Per Capita of Resources and Uses
Bank's total resources per capita, in terms of the number of branches and number of employees in the year 2011-2012 (21st March 2011-19th March 2012) were 92 Billion IRRials and 9 Billion IRRials respectively. This index regarding the Bank's total gross uses per capita, in terms of the number of branches and number of employees in the same year was 94 Billion IRRials and 9 Billion IRRials respectively.
Table (7): Per capita of Bank's Total Resources and the bank’s gross uses, in terms of Number of Branches and Staff (Since 2007-2008 to 2011-2012) (figures in Billion IRRials)
14
Per Capita of Total Per Capita of Total Gross
Resources in terms of : Uses in terms of :
Year
Gross Number of Number of Number of Number of
Branches Staff Branches Staff
TotalAmountof Resources Total Amountof Uses ofNumber Branches ofNumber Staff 2007-08 53,756 45,156 1,074 10,245 50 5 42 4
2008-09 50,854 50,040 1,076 10,619 47 5 47 5
2009-10 60,628 56,109 1,067 10,951 57 6 53 5
2010-11 80,048 81,808 1,070 10,823 75 7 76 8
2011-12 99,479 101,323 1,078 10,655 92 9 94 9
Refah Bank’s Projects in relation to Mobilization & Utilization of the bank’s Resources in 2011-2012
During the year 2011-2012 (21st March 2011-19th March 2012) and in line with continuing extending services to customers, satisfying them & meeting customers’ needs, Refah Bank designed and implemented different projects regarding mobilizing & utilizing resources in order to improve the level of customers’ satisfaction and upgrade the quality of services rendered to customers. Some of the proposed projects in the mentioned year are the following: Refah Current Facilities Project: Facilities that were allocated to the holders of current accounts based on the merits of this type of accounts without rendering check book to customers in order to provide some part of the charges which customers must bear for purchasing automobile & durable consumption goods. Barekat Project: Concurrent with the holy month of Ramadan and in order to extend special services to the bank’s customers, the possibility of opening 6 month special short-term deposit account has been provided through Barekat project. Refah Bank’s Autumn Festival: In order to extend state of the art & attractive services to customers, a special package was designed & extended as the bank’s autumn festival. This package included Shayan, Omid, Farhan, Student deposits and Pensioners’ appraisal project and Refah Tahsin deposit as well, where upon account opening, customers were able to enjoy the benefits of the bank’s services & facilities in different manners while receiving the related interest to their deposits. Taghdir Deposit Project: Concurrent with the bank’s 52nd establishment anniversary and in order to appraise 52 years of customers’ trust as well as the coincidence of Banking Week, a gift card equal to 2% of the opened one year investment deposit has been allocated to the bank’s customers within the framework of Taghdir project.
15 Entekhab Deposit Project: In order to further complete the portfolio of the bank’s services, the possibility of opening investment deposit account enjoying the benefits of unlimited crediting of the account has been provided in the form of Entekhab deposit. Bi-purposed Current Account: In order to complete the portfolio of the bank’s services and to extend special services to VIP customers, the possibility of opening bi- purposed current account has been provided. Fajr Deposit Project: To appraise Fajr Ceremony, a gift card equal to 3% of the opened two year investment deposit account has been allocated to the related customers through Fajr project. Bartar Deposit Project: In order to complete the portfolio of the bank’s services and to meet customers’ satisfaction and responding to their needs, the possibility of opening Bartar deposit has been provided enjoying special merits and special interest. Internet Banking Services: In order to develop presentable services to legal entities in internet banking system, internet services were extended. Short-term Investment Deposit with special interest rate: Public Deposit Certificate: Mizan Credit Card on the basis of Morabaha Contract in working sector: Payments (Pensioners, Insurance Premiums & ….)
The number of pension payments in the year 2011-2012(21st March 2011-19th March 2012) was 19,119,290 which has been increased by 4.58% in comparison to the previous year. Moreover the number of insurance premium receipts in the same mentioned year was 23,442,590 which have increased by 10.66% in comparison to the previous year. Table (8): Number of Pension Payments and Insurance Premiums Receipts (Since 2007-2008 to 2011-2012)
Year 2007-08 2008-09 2009-10 2010-11 2011-12
Number of Pension Payments 13,803,713 15,372,551 16,748,742 18,282,889 19,119,290
Number of Insurance Premium 15,789,931 18,746,244 19,827,559 21,185,051 23,442,590 Receipts
Chapter Four: International Banking and Foreign Exchange Activities
16 It’s obvious that the nature of foreign exchange operations and international banking which are constantly influenced by banking communications and financial, political, economical and international relations, have encountered theses activities with multiple challenges. In recent years the most important challenges were unilateral sanctions imposed by Western countries against our country’s banking system including Refah Bank and issuing several resolutions which were supposed to bring about numerous difficulties in international banking and international fund transfers. In this connection, despite all existing limitations, the related responsible employees for international banking in Refah Bank have done their best to meet most of customers’ needs within the framework of existing rules & regulations in order to preserve the status of the Bank’s international sector in a desirable level. Accordingly, particular policies and approaches have been predicted to decrease the impact of the imposed limitations with positive approach of the bank’s senior managers and their full support aiming to continue extending foreign exchange services as before and to improve qualitative and quantitative level of international banking operations to meet the customers’ needs within the framework of international regulations and C.B.I. foreign exchange rules. Regarding the above and due to the changes which have occurred in international payments mechanism and by employing new payment patterns, the volume of foreign exchange operations in the form of payment orders and documentary collections have increased in comparison to the volume of documentary credits during 2007-2008 until 2011-2012. As it is indicated in table 9 and the related figure, documentary credits show decreasing trend in the year 2011-2012(21st March 2011-19th March 2012) which is the result of some changes in the structure and policies of the bank regarding foreign exchange activities. In this line, the greatest decrease is specifically related to the year 2010-2011 (21st March 2010- 20th March 2011) which exactly coincides with imposing international sanctions and placing Refah Bank in the sanction lists imposed by European Union in that date. This great decrease has been compensated in the next year subsequent to making new decision in confronting imposed sanctions. Therefore, the number and amount of sight and deferred payment documentary credits moved in an increasing pace in the mentioned year. Obviously the occurred decrease in the volume of refinance documentary credits is related to lack of allocated credit lines through C.B.I. and most importantly imposed limitations which resulted in lack of allocating new credit lines to importers. In this circumstances, many importers focused their activities on documentary collections (without liability)
17 leading to an increase in the volume of documentary collections which is indicated in table 10. Table (9): Comparison of the Bank’s Forex Operations Regarding Import Documentary Credits since 2007-2008 until 2011-2012 L/Cs out of Deferred Payment Sight L/Cs Refinance L/Cs Foreign Exchange Total L/Cs
Reserve Fund Year Amount Amount Amount Amount No. No. No. No. No. Amount (USD) (USD) (USD) (USD) (USD) 2007- 1144 398,466,935 389 122,521,789 73 54,002,168 1 23,266,813 1607 598,257,705 2008 2008- 507 291,798,913 173 43,097,883 40 19,620,205 0 0 720 354,517,001 2009 2009- 439 201,477,898 202 38,186,923 48 26,744,013 6 26,469,711 695 292,878,545 2010 2010- 190 122,066,470 74 27,954,226 70 59,701,946 0 0 334 209,722,642 2011 2011- 422 240,487,671 84 114,610,183 41 48,268,778 0 0 547 403,366,632 2012
Figure (1): Comparison of the Bank’s Forex Operations Regarding Import Documentary Credits since 2007-2008 until 2011-2012
400,000,000 350,000,000 300,000,000 Sight L/C 250,000,000 200,000,000 150,000,000 Def-Payment L/C 100,000,000
50,000,000 Refinance L/C 0
Despite the decreasing trend of deferred documentary collections, sight documentary collections had an increasing trend which as pointed out before was due to the changes in the pattern of forex operations leading to sight dealings through means other than documentary credits such as payment orders in a way as is indicated in table 10 and figure 2 below, the amount of sight and deferred documentary collections in year 2011-2012 (21st March 2011-19th March 2012) has
18 been increased by 4 times when compared to the previous year and sight collections has reached USD 554 Million from USD 142 Million and deferred collection has reached USD 5 million where no collection has been accepted in its previous year.
Table (10): Comparison of the Bank’s Forex Operations Regarding accepted Documentary Collections since 2007-2008 until 2011-2012
Sight Collections Time Collections Total Year Amount Number Amount (USD) Number Number Amount (USD) (USD) 2007-08 3792 387,559,675 215 30,037,701 4007 417,597,376
2008-09 3019 367,416,717 152 33,638,706 3171 401,055,016
2009-10 2052 193,995,196 9 1,240,346 2061 195,235,542
2010-11 1468 142,339,937 0 0 1468 142,339,937 2011-12 2224 553,881,941 1 4,949,824 2225 558,831,765
Figure (2): Comparison of the Bank’s Forex Operations Regarding accepted Documentary Collections since 2007-2008 until 2011-2012
600
400
200
0 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
Sight Collection
19 40
30
20 10 0 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
Time Collections
Due to the fact that the country’s exporters are always trying to enjoy the benefits of export facilities and the related advantages in export sectors, they would like to centralize their related affairs into one particular bank that as it is obvious, Export Development Bank of Iran as a specialized bank controls over such issues and is the exporters’ selected bank in this regard. Accordingly, figures related to the bank’s operations regarding export and issuing export documentary credits shows insignificant volume. Furthermore, the decreasing trend of the bank’s guarantees and lack of figures related to import counter guarantees is related to international sanctions and non acceptance of export guarantees by correspondent banks.
Table (11): Comparison of the Bank’s Forex Operations Regarding export documentary credits & forex guarantees since 2007-2008 until 2011-2012 Import L/Gs Export L/Gs Export L/Cs Year Number Amount (USD) Number Amount (USD) Number Amount (USD)
2007-08 10 4,674,894 4 471,630 10 2,765,639
2008-09 18 9,136,799 12 245,494 5 4,969,122
2009-10 8 4,393,123 0 0 3 3,375,710
2010-11 9 7,741,564 1 53,187 0 0
2011-12 0 0 1 565,218 0 0
20 Figure (3): Comparison of the Bank’s Forex Operations Regarding Export Documentary Credits and Foreign Exchange Guarantees since 2007-2008 until 2011-2012
10,000,000 9,000,000 8,000,000 Import L/Gs 7,000,000 6,000,000 Export L/Gs 5,000,000 4,000,000 Export L/Cs 3,000,000 2,000,000 1,000,000 0 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
Owing to the occurred changes in the patterns of international dealings of importers despite the decrease in the volume of deferred payment documentary credits & documentary collections, figures related to performing payment orders show an increasing pace. This reveals the fact that Iranian importers focused their dealings in immediate sight payment orders which indicates the mentioned change. Decrease in the volume of incoming payment orders is due to international sanctions, lack of fund transfer channels, blocking of correspondent accounts abroad and decrease of export L/Cs and allocated funds from C.B.I. and other resources. Table (12): Comparison of the Bank’s Forex Operations Regarding Incoming and Outgoing Payment Orders (since 2007-2008 until 2011-2012) Forex Outgoing P/Os Forex Incoming P/Os Year Number Amount (USD) Number Amount (USD)
2007-08 3512 401,613,903 1216 211,570,636
2008-09 3519 618,866,406 722 259,282,648
2009-10 2452 419,409,754 851 269,007,540
2010-11 3195 5,438,878,217 566 179,056,146 2011-12 4192 401,895,612 316 99,422,518
Figure (4): Comparison of the Bank’s Forex Operations Regarding Incoming and Outgoing Payment Orders (since 2007-2008 until 2011-2012)
Forex Outgoing P/Os 21 77% 2% 6% 2007-2008 9% 2008-2009 2009-2010 2010-2011 2011-2012
6%
Forex Incoming P/Os
17% 2007-2008 11% 26% 2008-2009 2009-2010 21% 25% 2010-2011 2011-2012
In line with changes occurred in international dealings patterns and concurrent with the decreasing trend of issued documentary credits and accepted documentary collections, the patterns of commissions and incomes obtained from forex operations have changed and therefore despite the decreasing trend of commissions out of issuing documentary credits and accepting documentary collections, the volume of obtained commissions out of payment orders and guarantees show an upward trend. Moreover, despite all existing limitations and sanctions imposed by Western countries and impossibility of depositing with foreign correspondent banks, International department of Refah Bank has made several measures to use the bank’s resources optimally in different possible ways which led to noticeable growth of income during the mentioned periods through depositing in local correspondent banks.
Table (13): Comparison of the Bank’s Forex Operations Regarding Forex Commissions and Incomes (since 2007-2008 until 2011-2012) (Figures in IR Rials)
22 Commissions 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 obtained out of : Issuing Documentary 41,775,418,847 27,493,818,821 12,949,445,253 14,822,801,056 24,767,313,088 Credits
Accepting Documentary 6,746,209,404 5,333,571,060 10,259,133,000 10,946,009,860 20,796,054,170 Collections
Buying and Selling 4,353,711,236 3,794,238,259 1,595,616,353 8,350,423,020 5,611,498,713 Foreign Currency Foreign currency 1,609,623,398 2,055,405,477 1,347,275,829 2,268,016,667 2,790,543,921 Payment Orders Foreign Currency 2,525,549,099 6,041,992,735 5,699,935,145 4,489,715,562 3,878,880,342 Guarantees
Income out of: 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
Issuing Documentary 299,608,574,427 1,304,223,543,934 470,022,993,831 399,351,112,611 287,986,194,474 Credits Depositing in Local 12,915,491,833 34,875,005,379 11,748,291,948 16,368,977,574 32,296,033,732 Correspondent Banks Depositing in Foreign 13,493,954,575 50,606,952,040 0 953,055,250 0 Correspondent Banks
Figure (5-1): Comparison of the Bank’s Forex Operations Regarding Forex Commissions (since 2007-2008 until 2011-2012) (Figures in IR Rials)
23 45,000 L/C Commissions 40,000 35,000 Collections Commission 30,000 25,000 Buying & Selling Foreign 20,000 Currency Commission 15,000 Payment Orders 10,000 Commission
5,000 Guarantees Commission 0 2007-2008 2008-2009 2009-2010 2010-2011 2010-2011
Figure (5-2): Comparison of the Bank’s Forex Operations Regarding Forex Incomes (since 2007-2008 until 2011-2012) (Figures in IR Rials)
1,400,000
1,200,000 Income from Documentary Credits 1,000,000 Income from 800,000 Depositing in Local Banks 600,000 Income from 400,000 Depositing in Foreign Banks 200,000
0 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
Table (14): Comparison of the Bank’s Forex Operations Regarding Forex Deposits and Advance Payments (Figures in IR Rials) (2007-2008 to 2011-2012)
Description 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
24 Forex Deposits 749,247,545,937 826,928,458,638 1,957,100,117,936 504,913,192,346 474,507,511,210
Forex Advance 1,523,907,010,378 2,345,630,314,604 1,371,214,941,953 873,288,130,042 917,866,606,262 Payments
Total (IR Rials) 2,273,154,556,315 3,172,558,773,242 3,328,315,059,889 1,378,201,322,388 1,392,374,117,472
Figure (6): Comparison of the Bank’s Forex Operations Regarding Forex Deposits and Advance Payments (since 2007-2008 until 2011-2012) (Figures in IR Rials)
2,500,000
2,000,000 Forex Deposits 1,500,000 Advance 1,000,000 Advance Payments 500,000
0
In line with attracting customers’ foreign currency deposits and better management of foreign currency liquidity of the bank and for avoiding probable risks in future payments of issued documentary credits, the total amount of foreign currency deposits and advance payments in the year 2011-2012 show an increasing trend in comparison to the previous year. This indicates appropriate management of foreign exchange liquidity to avoid probable risks of blocking the balance of the bank’s correspondent accounts with foreign banks. Among other important measures & achievements of Refah Bank which were carried out by the international sector of the bank the following can be pointed out:
25 1) In order to make maximum use of existing potentials and based on the competitive nature of foreign exchange activities and subsequent to investigating the potential requests by International section of the bank, some changes occurred in the structure of branches in order to practice foreign exchange activities in more branches. 2) To develop activities outside the country and to expand the presence of Refah Bank in international activities through establishing branch/bank/company abroad, expanded studies have been carried out about some selected countries and also feasibility studies have been provided in order to look into the potential countries under the approvals of Board members. 3) Due to the importance of human resources training in Refah Bank and to improve the knowledge of foreign exchange activities & international banking, Refah Bank dispatched selected personnel to participate in courses inside and outside the bank to be able to make progress in line with international changes and to improve their professional knowledge. 4) Pursuant to sanctions imposed by SWIFT located in Belgium in year 2011 the international department’s experts participated in C.B.I. meetings and made preliminary measures to cope with the new situation through possible ways. 5) To continue the close relationship between active personnel in foreign exchange divisions of branches and international department’s staff, required grounds have been provided to hold joint meetings in branches in order to negotiate over their difficulties regarding their co operations with International department and to find a way to settle them. 6) Compiling related directives in compliance with necessities of foreign exchange operations and on time informing of personnel about the changes in the foreign exchange rules and international banking practices in sanctions and limitations have been constantly carried out by International department. 7) Pursuant to C.B.I. reiterations and in order to clarify the bank’s operations and due to the necessity of providing all information and transactions which effect the bank’s resources, foreign exchange portal of C.B.I. has been established and implemented in the bank and with the cooperation of all the staff the required information were inserted in the system.
Chapter Five: Bank’s Main Measures and Achievements
Management Systems and Continuous Promotion
26
1) (ISO 9001) Quality Management System: In line with implementing the bank’s high managers’ policy regarding qualitative and quantitative development of banking services, the department of independent branches as the bank’s first point of establishing quality management system was selected and thus Refah Bank has succeeded to obtain ISO 9001:2000 Certificate from DQS German company in the year 2000 as the first commercial bank in Middle East. Currently Refah Bank holds the certificate of quality management system based on ISO 9001:2008 as well and after making necessary preparations, the first auditory course was held on 7th & 8th of January 2012 by Tuv Nord Company and ultimately Refah Bank has succeeded to extend the validity of the said certificate in the mentioned year. 2) Suggestions System: In the year 2011-2012 positive changes came along with suggestions systems and after a decade of implementing such approach and with the help & cooperation of esteemed mangers following amendments have occurred: Mechanizing the process of suggestions system: With the purpose of facilitating & accelerating the process of this system and after several expertise investigations, a specially designed software for suggestions system has been identified and purchased to enable users to carry out all the related procedures including registration, accountability, sending and revising request through a system based on Web. Establishing virtual thinking center: With the purpose of benefiting from the mental potentials of the bank’s staff in organizational decisions, Refah Bank virtual thinking center has been established and started working since August 2011 as an important measure in cooperative management. Structuring Suggestions System: The expertise group of suggestions system and virtual thinking center was formed in the organizational chart of Research & Planning Department for the first time and started working subsequent to the formation of the said unit. Revising Directives: Since several years have passed from approving the directives related to suggestions system and due to the fact that virtual thinking center has been recently established and with reference to some basic changes in assessment criteria of suggestions and rewarding the suggestion, a new directive for suggestion system & virtual thinking center has been prepared and advised to all the bank’s units.
27 3) Islamic Banking: According to the macro policies of the country’s 5th development plan such as “amending the structure of banking system by full and updated implementation of non-usury banking law”, Refah Bank has started a serious plan to correctly execute Islamic Banking principles with the purpose of first to eliminate usury and to remove all doubts from the bank’s activities and second to implement all Islamic Banking principles in order to be a symbol of Islamic Banking in the banking system of the country. Thus in line with fulfillment of Islamic Banking and subsequent to the approval of Board Members “Islamic Banking Development expertise group” has been formed in Research and Planning development department which is still carrying out its related tasks. From the beginning of the year (21st March 2011-19th March 2012) and with the presence of some of Board Members and Directors of branches and departments, the high committee of Islamic Banking was established and different issues such as the problem of delay penalties interference in the bank’s income and implementation of cooperative banking in profit & loss (PLS) were negotiated and the related records and investigations are kept in Research & Development department. Among other measures regarding Islamic Banking development, recalling for the employees’ essays and suggestions about Islamic Banking assessing indices and subsequently holding the first conference of Islamic Banking in Mashhad on October 2011 can be pointed out. 4) Restructuring and Improving the Network of Bank's Branches (Closing or Replacing Ineffective Branches): The bank’s macro policies in recent years put emphasis on stopping quantitative growth, optimizing and improving the bank’s branches’ network and receiving C.B.I. principled agreement to establish banking units and branches solely in the year 2011 on the mentioned basis through being actively present in commercial zones having strong economic potentials. This action was taken to increase the bank’s market’s share and to compensate the improper status of some branches of the bank. (those which were located in Social Security Organization, Medical Sciences universities , Hospitals,….. and were thereforephysically remote from commercial zones with economic potentials ) Therefore, 9 branches and 12 units of special services and 35 division of extending special services have been established in the year 2011 (21st March 2011-19th March 2012). 5) Honoring Customers’ Plan: Since Refah Bank is the first bank in the Middle East which has succeeded to implement quality management system; all the bank’s processes have been structured by the approach of client orientation. Furthermore, Refah Bank has tried to socialize client orientation culture in the bank and has considered priority of client orientation project as the bank’s
28 basic value. In this line respecting customers, paying attention to customers’ different needs, creating suitable place and welfare equipments in branches, creating units of rendering special services for Social Security Pensioners with one physician’s presence and assessing customers’ satisfaction were among the bank’s measures in this area which enabled Refah Bank to obtain the first rank among the country’s bank for the 8th successive year. Meanwhile in some points the bank has been introduced as the best executive organization among all local organizations. Furthermore in order to create effective communications with customers and concurrent with Favor’s day, Refah Bank has specified 4th of March 2011 as the customers’ honoring day in which special ceremonies and formalities are done and special services are extended to customers. Electronic Banking & Information Technology: Following measures have been made in Refah Bank in the year 2011-2012 (21st March 2011-19th March 2012) concurrent with changes in electronic banking and in order to accelerate and facilitate extending services to the public: 1) Banking systems and infrastructures: Identifying & assessing core banking products to be established in Refah Bank Implementing the project of subsides with more than 900,000 accounts through electronic means Implementing the project of receiving insurance premiums centralized in all branches of Social Security Fund Organizing & Improving the status of C.B.I. requested reports Establishing system of bi-purposed accounts for on-line account holders Preparing the new system of Iran check according to C.B.I.’s instruction Preparing the systematic transfer of on-demand accounts from the branches’ system to on-line system Preparing the sub system of Entekhab deposit in on-line accounts system Creating the possibility of empowering users of on-line accounts for provincial department Equipping 175 branches with Q-matic take turning system (the total number of branches equipped with this system is now 710) Implementing the project of eliminating the physical move of check draft (Sama project) in Zanjan province in accordance with other banks Responding to necessities and reports of implementing AML principles Preparing a web based system for credit facilities information in relation to required reports of C.B.I. and Ministry of Assets and Finance Affairs
29 Preparing the system of daily collection of branches information Implementing Iran Banking Account ID number (Shaba) in on-line and satna system Preparing Bluetooth system to be established in 650 branches Creating a link between the bank’s branches and internet banking system 2) Electronic Banking: Developing services related to ATM & POS . Providing the possibility of real time settlement of purchase funds to POS holders . Providing the possibility of paying bills and selling cell phone charges on markets’ POSes . Linking market’s POS to electronic network of stores & organizations . Proving the possibility of receiving donations (for Imam Khomeini Charity Committee and Association of special disease) through Refah Bank’s ATMs . Presenting banking ID (Shaba) to customers through ATM . Extending services of paying employer’s insurance premium through ATM . Increasing the withdrawal ceiling on ATM for special customers (pensioners) . Extending the services of pin pads in branches (paying cash funds and announcing balance to Shetab card holders) . Participating in tenders for purchasing 400 ATMs and renting 35000 POSes . Activating barcode scanners on ATMs of GRG & wincor Extending services of payment card . Establishing the system of issuing payment cards in all Provincial Departments . Establishing the system of issuing Mizan credit card . Providing the possibility of closing previous (old) Refah cards in the bank’s branches . Establishing the security system of decoding card system (HSM) . Providing the possibility of charging gift cards in provincial departments for any amount . Issuing cards with special features . Mechanizing pending transactions of ATMs
30 Extending services of telephone bank & mobile bank . Extending service of bill payment and balance checking for Shetab card holders . Extending service of paying insurance premium for Shatab cards . Enhancing the quality of system for sending real time SMS while carrying out the financial transaction on cards & on-line accounts . Sending group sms in cases like cards validity date or informing card holders on different occasions . Implementing the possibility of receiving second password from cards’ telephone bank system Establishing Refah Bank’s IPG (Internet Payment Gate) . Concluding agreements with internet companies intended to use Refah Bank’s IPG . Extending service of bill payment to Shetab card holders . Extending the above service as well as balance checking and card to card transfer to Refah Bank’s card holders Establishing CIS system for extending different types of services to legal entities through internet (web service, FTP, email) 3) Department systems . Establishing new system of income & fringe benefits in Payroll Department . Establishing new system of employees’ credit facilities in Payroll Department . Creating a system of collecting basic information of all employees . Participating in tenders related to human resources and official automation systems . Creating and establishing a new warehouse system in the bank’s main warehouse, Departments of Financial Affairs and Provincial Department . Technical examining of properties system and determining on a company for implementing the system . Updating RFP of welfare services and investigating the existing products and selecting a company for purchasing a system
31 . Updating RFP of employees training system and investigating the existing products and selecting a company for purchasing a system . Creating the mechanized system for supporting the bank’s hardware equipments . Creating a system of evaluating efficiency and ranking of the bank’s units . Equipping more than 4000 working stations with core anti- virus system capable of daily updating through the network Comparative Statistics The number of on-line account holders reached 3,158,516 at the end of the year 2011-2012 (21st March 2011 to 19th March 2012) from 1,529,578 in the previous year which indicates an increase of 106%. Table (15): On-line account holders (Customers)
Customer type 2009-10 2010-11 2011-12 Individual 539,084 1,497,712 3,118,676 Legal entities 25,953 31,866 39,840 Total 565,037 1,529,578 3,158,516 The number of on-line accounts reached 3,337,580 at the end of the year 2011- 2012 (21st March 2011 to 19th March 2012) from 1,520,735 in the previous year. In other words the number of these accounts shows 120% increase during the mentioned year. Table (16): On-line Accounts
Account Type 2009-10 2010-11 2011-12 Saving Qarz-al-Hassaneh 135,711 928,086 1,836,695 Current Qarz-al-Hassaneh 374,345 495,140 1,172,719 Short-term deposit 21,318 97,509 328,166 Total 531,374 1,520,735 3,337,580
Table (17): Number of Customers of Traditional Branches System Customer Type 2009-10 2010-11 2011-12 Individual 15,629,880 9,514,121 9,850,166 Legal entities 132,978 120,484 120,901 Total 15,762,858 9,634,605 9,971,067
32 Number of traditional branches accounts have not been increased during the year 2011-2012 (21st March 2011 to 19th March 2012) due to the bank’s internal policy regarding increasing the number of on-line (core) accounts.
Table (18): Number of Traditional Branch System Account
Account Type 2009-10 2010-11 2011-12 Current Qarz-al-Hassaneh 1,322,531 1,332,945 1,327,795 Saving Qarz-al-Hassaneh 7,775,687 5967,075 5,952,834 Short-term deposit 1,265,274 1,203,589 1,216,376 Long-term deposit 340,398 206,737 249,584 Total 10,703,890 8,710,346 8,746,589
During the year 2011 (21st March 2011 to 19th March 2012) the number of ATMs, POSes, branches pin pads and total number of Refah Bank’s cards have increased by 1.9%, 169.77%, 9.52% and 60.9% respectively.
Table (19): Cards and payment terminals Growth during Title 2009-10 2010-11 2011-12 the year 2011- 12 % Number of ATMs 864 947 965 1.9 Number of POSes 2,319 7,046 19,008 169.77 Number of branches pin pads 1,180 1,334 1,461 9.52 Total number of cards 1,773,492 2,922,437 4,702,250 60.9
Number of customers who enjoy telephone bank services have reached 473,993 in the year 2011-2012 (21st March 2011 to 19th March 2012) from 265,039 in the previous year which indicates an increase of 78%. Meanwhile the number of customers who enjoy internet banking services has increased by 121% in the same period in a way that this number reached 82,074 from 37,091 in comparison to the previous year.
Table (20): Telephone Bank & Internet Banking
Growth during Title 2009-2010 2010-2011 2011-2012 the year %
Number of telephone bank 166,013 265,039 473,993 78%
33 customers Number of internet banking 101 37,091 82,074 121% customers
Chapter Six: Financial Statements
34 Refah Bank’s Balance Sheet On March 19th ,2012 Figures in Million I.R. Rials
Assets Note 19/03/2012 20/03/2011 Liabilities and Shareholders Equity Note 19/03/2012 20/03/2011 Cash assets 5 1,762,030 1,524,595 Dues to Central Bank of Iran 16 3,692,045 3,000,009 Dues from Central Bank of Iran 6 13,838,878 9,418,779 Dues to other Banks and Credit Institutions 17 1,860,895 3,875,057 Dues from other Banks and Credit 7 4,933,207 4,144,773 Sight Deposits 18 36,127,870 28,442,192 Institutions Allocated Credit Facilities and Dues from 8 1,391,564 1,334,421 Saving Deposits and the like 19 13,173,232 14,303,081 Governmental Sector Allocated Credit Facilities and Dues from 9 81,179,051 63,366,091 Time Investment Deposits 20 49,372,874 32,702,547 Non-Governmental, Private Sector Letters of Credit and Time Bills of Exchange 10 1,585,262 497,031 Other Deposits 21 1,505,163 1,232,076 Investments and Partnerships 11 621,028 669,036 Reserves and Other Dues 22 2,663,234 1,131,631 Fixed visible Assets 12 8,892,526 1,794,037 Tax Reserves 23 166,726 837,004 Invisible Assets 13 125,566 99,287 Paid Shares Interest 24 11,405 831,007 14 5,432,197 3,541,429 The Staffs’ Termination Fringe Benefits 25 1,037,603 993,984 Other Assets Reserve Floats 15 1,260,728 2,664,884 Total Dues 109,611,048 87,348,588 Shareholders’ Equity: Capital 26 895,000 895,000 Current capital increase 26-1 3,105,000 0 Reserves 27 607,862 565,034 Surplus of revaluating visible fixed assets 4-2 6,326,099 0 Accumulated Profit balance 477,026 245,742 Total Shareholders’ Equity 11,410,987 1,705,776 Total Assets 121,022,036 89,054,365 Total Dues and Shareholders’ Equity 121,022,036 89,054,365
Customers’ Undertakings under L/Cs 46-1 1,949,412 1,592,838 Bank’s Undertakings Under L/Cs 46-1 1,949,412 1,592,838 Customers’ Undertakings under L/Gs 46-2 7,595,969 3,169,850 Bank’s Undertakings Under L/Gs 46-2 7,595,969 3,169,850 Customers’ Other Undertakings 46-3 65,411 669,963 Bank’s Other Undertakings 46-3 65,411 669,963 Managed Funds and the like 46-4 570,130 562,009 Managed Funds and the like 46-4 570,130 562,009 Total Customers’ Undertakings 10,180,922 5,994,660 Total Bank’s Undertakings 10,180,922 5,994,660
35 Refah Bank’s Profit and Loss Statement, On March 19th, 2012 (Figures in Million I.R. Rials) Note 19/03/2012 20/03/2011
A) Bank’s Undivided Incomes: Received Interest and Delay Penalties 28 8,503,000 6,230,314 Received Interest out of Investments and Depositing 29 472,824 466,989
Total Bank’s Undivided Income 8,975,824 6,697,303
On-demand Interest of Investment Deposits 30 (4,017,921) (3,027,476) Difference of Final and on-demand Investment 30 (218,786) (107,685) Deposits Interest Net Depositors’ Interest Share (4,236,707) (3,135,161) Bank’s Share out of Undivided Incomes(including honorarium) 4,739,118 3,562,141 B) Bank's Divided Incomes: Received Interest and Delay Penalties (Foreign 31 684,937 717,919 currency) Received Commissions 32 855,848 614,499 Foreign Exchange Differences 33 435,358 341,029 Other Incomes 34 181,293 103,945 Delay Penalty received from other credit facilities 35 59,959 56,248
Total Bank’s Divided Income 2,217,395 1,833,639
Total Incomes 6,956,513 5,395,780 C) Costs:
Paid Interest (excluding depositors’ interest) 37 (1,045,980) (223,856) Cost of Doubtful Claims 38 (305,005) (392,427) Paid Commissions 39 (653,488) (352,678) Total Cost 40 (4,317,317) (3,836,538) Other Costs 41 (235,708) (200,292)
Total (6,557,499) (5,005,790)
Pre-Tax Profit 399,014 389,989 Tax 23 (113,498) (60,000)
Net Profit 285,516 329,990 Refah Bank’s Cash Flow Statement, On March 19th, 2012
36 Note 19/03/2012 20/03/2011
Operational Activities: Million I.R. Rials Million I.R. Rials Million I.R. Rials Net Cash Flow Entering (Exiting) Related to 44 2,231,407 777,665 Operational Activities Yield out of Investments and Paid Interest for
Finance : Paid Interest for Received Financial Facilities (606,531) (223,856)
Net Interest of Received Shares 58,339 36,567 Cash Flow Related to Yield out of Investments (548,192) (187,289) Return and Paid Interest for Finance Tax on Income: Tax on Paid Income (Including advance payment (783,777) (76,810) of tax) Investment Activities: Paid Funds for Direct Investment and Legal (437,557) (171,356) Partnerships Received Funds for Direct Investment and Legal 471,434 161,457 Partnerships Received Funds for Selling Tangible Fixed Assets 15,975 8,258 Paid Funds for Buying Tangible Fixed Assets (992,825) (300,454)
Received Funds for Selling Invisible Assets 12,304 (15,023) Net Cash Flow (Exiting) Entering Related to (930,669) (317,118) Investment Activities Cash Flow Exiting Before Finance Activities : (31,231) 196,447
Finance Activities:
Net Received Financial Facilities (2,027,413) 1,060,014 Cash Flow Related to Capital Increase 2,273,993 0
Cash Flow entering Related to Finance Activities 246,580 1,060,014
Increase in Cash Funds 45 215,349 1,256,461 Cash Fund Balance at the beginning of the Fiscal 4,978,598 3,722,137 Year Cash Fund balance at the end of the Fiscal Year 5,193,948 4,978,598
Non-Cash Exchanges (44-1) 857,934 638,497
Chapter Seven: Communication Channels
37
Refah Bank’s Website: www.Refah_Bank.ir Farad Center: (Refah Bank’s informing & responding center) Farad center has been established with the purpose of providing easy & rapid communication, centralizing communication channels, providing the access to the bank’s information & services and also managing and supervising the accountability to fulfill customers’ needs to enhance the level of services. The esteemed customers of Refah Bank can make a telephone call to (021) 8525 having 60 digital lines, being open from 7:30 AM to 16 PM all days and from 7:30 to 13 PM on Thursdays and negotiate about their queries and to find the answers to their questions at the soonest possible time. Other channels of communicating with Farad are the following: o Sending SMS to 300044 o Sending email to [email protected] through the bank’s website i.e. www.refah- bank.ir , through the menu of “contact us”. o Making correspondence with postal address: unit 101, 1st floor, Negin Sayee Tower, Number 2244, before Sayee Park, Valiasr Ave., Tehran, Postal Code: 1433893835 o Sending fax to (021)8525 Telephone & address of Refah Bank’s Provincial Departments (Branches Affairs) Provincial Departments Department of: Telephone Address E-mail Free zone, independent 021- Number 1617, after Safa intersection, 17 branches & prime 88054983 Shahrivar St., Tehran [email protected] customers’ affairs 021-88600871 Tehran north branches’ 021- Number 144, Gholhak St., Shariati Ave., Tehran [email protected] affairs 22906633 Tehran south branches’ 021- Mellat St., Imam Khomeini Sq., Tehran [email protected] affairs 33950533-5 Tehran west branches’ 021- Number 1, at the corner of Setareh St., across [email protected] affairs 66563646 Carpet Museum, North Karegar st., Tehran Tehran east branches’ 021- Number 24, East Saremi St., after Taleghani St., [email protected] affairs 88937178-82 Nejatollahi Ave., Tehran East Azirbaijan 0411-5240202 Namaz Sq., Jomhouri Islami Ave., Tabriz [email protected] branches’ affairs West Azirbaijan 0441- Amini St., Oroumiyeh [email protected] branches’ affairs 2241055-7 Ardebil branches’ affairs 0451- Before Shariati Sq., Imam St., Ardebil [email protected] 2234505-7
38 Provincial Departments Department of: Telephone Address E-mail Alborz branches’ affairs 0261- Rajayee Shahr, Alborz [email protected] 4426643 Isfahan branches’ affairs 0311-2210103 Sepah St., Imam Hossein Sq., Isfahan [email protected] Ilam branches’ affairs 0841- North Saadi St., Ilam [email protected] 3382235-9 Boushehr branches’ 0771- After gas station, Moallem St., Boushehr [email protected] affairs 2529805 Chahrmahal va 0381- At te corner of 34th St., 17b Shahrivar St., Bakhtiari branches, 3343377-80 Enghelab Sq., Shahrekord [email protected] affairs Razavi Khorasan 0511- Across Homa Hotel, Khayyam Blvd., Mashhad [email protected] branches’ affairs 7630120-4 North Khorasan 0584- Ferdowsi Sq., Bojnourd [email protected] branches’ affairs 2239227 South Khorasan 0561- Between Nejat & Nasrin St., Across Islamic Azad [email protected] branches’ affairs 4345107-9 University, Ghaffari St., Birjand Khouzestan branches’ 0611- Shohada Sq., Ahwaz [email protected] affairs 3369716-7 Zanjan branches’ affairs 0241- Khorramshahr St., Zanjan [email protected] 7283716-19 Semnan branches’ 0231- Near department of healthcare services, [email protected] affairs 3342032 17Shahrivar Blvd., Semnan Sistan va Balouchestan 0541- Across department of Islamic Guidance & [email protected] branches’ affairs 2425691-4 Culture, Khorramshahr road, Zahedan Fars branches’ affairs 0711-2304591 Karimkhan Blvd., Shiraz [email protected] Ghazvin branches’ 0281-2232160 Across Electricity Department, Taleghani Blvd., [email protected] affairs Ghazvin Ghom branches’ affairs 0251- Across Refah Market, Saeedi Sq., Ghom [email protected] 6604763 Kordestan branches’ 0871-2271211- Near Alborz Insurance, Ostandari St., Sanandaj [email protected] affairs 13 Kerman branches’ 0341- Tehran Road, Kerman [email protected] affairs 2123720-21 Kermanshan branches’ 0831- Azadi Sq., Kermanshah [email protected] affairs 8226980-85 Kohgilouyeh va 0741- Basij cross road, Jomhouri St., Yasouj Boyerahmad branches’ 2232511-14 [email protected] affairs Golestan branches’ 0171- Sepah St., Imam Khomeni St., Vahdat Sq., [email protected] affairs 2255571-9 Gorgan Gilan branches’ affairs 0131- Imam Khomeini St., Rasht [email protected]
39 Provincial Departments Department of: Telephone Address E-mail 3244701-3
Lorestan branches’ 0661- East Shohada St., Lorestan [email protected] affairs 2225990-2 Mazandaran branches’ 0151- 5th floor, Amir Mazandarani St., Sari [email protected] affairs 2293864-5 Markazi branches’ 0861-2230661 Near Refah Market, Sardaran Sq., Arak [email protected] affairs Hormozgan branches’ 0761- North Resalat Blvd., Imam St., Bandarabbas [email protected] affairs 6670511-13 Hamedan branches’ 0811- Number 36, Mirzadeh Eshghi St., Hamedan [email protected] affairs 2529484-5 Yazd branches’ affairs 0351- Jomhouri Blvd., Yazd [email protected] 5229000
40