Bank Islami 6ox24

CONTENTS •HISTORY

OF ISLAMIC BANKING •EVOLUTION OF BANK ISLAMI •BANK ISLAMI IN PAKISTAN •INTRODUCTION TO BANK ISLAMI •PRODUCT AND SERVICES o Consumer Banking o Retail Banking o Corporate Banking o Investment Banking o Value Added Services

CONT`D •FINANCIAL PERFORMANCE •CONCLUSION

History and Evolution of Islamic Banking 

The first instance of Islamic banking came into the picture in Egypt in 1963. The pioneering efforts by Ahmad El Najjar brought this bank into existence, whose key principle was profit sharing (non-interest based philosophy of Shariah. The bank neither charged nor paid interest but its activities were mostly limited to trade and industries where these banks invested directly or as partners of depositors.

Evolution of Islamic Banking In Pakistan 

Pakistan was among the three countries in the world that has been trying to implement Islamic banking at national level. This process started with presidential order to the local Council of Islamic Ideology (CII) on September 29, 1977. The council was asked to prepare the blueprint of interest free economic system. It submitted its report in February 1980, highlighting various ways and sufficient details for eliminating the interest from the financial system of Pakistan.

HISTORY OF BANKISLAMI THE IDEA: The idea of BankIslami was conceptualized by Jahangir Siddiqui & Company Limited and DCD Group in late 2003. Mr. Has an A. Bilgrami was appointed as Adviser to the sponsors on March 16, 2004. Accreditation by State Bank of Pakistan: The State Bank of Pakistan issued a No Objection Certificate in no time on August 19, 2004 and BankIslami Pakistan Limited, the second full-fledge Islamic Commercial Bank in Pakistan, was incorporated on October 18, 2004 in Pakistan

CONT`D BankIslami Pakistan Limited was the first Bank to receive the Islamic Banking license under the Islamic Banking policy of 2003 on March 31, 2005. The Bank envisioned to focus primarily on Wealth Management as the core area of business in addition to Shariah compliant Retail. •Initial Public Offering of BankIslami: BankIslami Pakistan Limited made a public offering of Rs. 400 Million, at par, from 6th to 8th March. This was the first primary issue by a Bank in over a decade in Pakistan. The Initial public offering (IPO) of BankIslami received overwhelming response from the general public as the applications received were 9 times higher than offered, fetching nearly Rs. 3.5 Billion, against the demand of Rs. 400 Million.

CONT`D •Inauguration

and Network Expansion: The State Bank of Pakistan declared BankIslami Pakistan Limited as a Scheduled Bank with effect from March 17, 2006. BankIslami started its Banking operations on 7th April 2006 with its first branch in SITE, Karachi. By the end of 2006, the Bank had 10 branches, nine in Karachi and one in Quetta. The Bank further concentrated in building a nationwide network and by the end of year 2007, its branch network grew to 36 branches in 23 cities. In 2008, the Bank opened 66 new branches nationwide which expanded its network to 102 branches in 49 cites.

PRODUCTS & SERVICES •PRODUCT AND o

o o o

o

SERVICES Consumer Banking Retail Banking Corporate Banking Investment Banking Value Added Services

CONSUMER BANKING •MUSKUN

Home Financing •Islami Auto Ijarah-New Vehicle •Islami Auto Ijarah-Used/Imported Vehicle

CONT`D •MUSKUN

Home Financing: The MUSKUN Home financing facility is based on the principle of Diminishing Musharakah and Ijarah. The Diminishing Musharakah transaction is based on Shirkat-ul-Milk where you and the Bank participate in ownership of a property.

CONT`D •Islami Auto

Ijarah-New Vehicle: Bank Islami's Auto Ijarah facility is based on the concept of Ijarah. It is a Shariah compliant alternative to Conventional leasing where Bank acts as a Lesser and you act as a Lessee. The Bank requires you to pay a monthly rent for the use of the Vehicle. In this while, the ownership of the vehicle remains with the Bank, only the rights of use is transferred to you

CONT`D Islami Auto Ijarah-Used/Imported Vehicle

BankIslami's Auto Ijarah facility is based on the concept of Ijarah. The Bank requires you to pay a monthly rent for the use of the Vehicle. In this while, the ownership of the vehicle remains with the Bank, only the rights of use is transferred to you. At the end of the Ijarah Agreement, you will be given a choice whether to return the vehicle to the Bank and receive back the security deposit paid by you at the beginning* or to purchase it at a price as low as the security deposit.

Retail Banking •: oIslami

Current oIslami Foreign Currency oIslami Bachat oIslami Dollar Bachat oIslami Mahana Munafa oIslami Amadni Certificate oRates & Weightages

Islami Current 

With our Islami Current , you can have complete peace of mind that your funds are safe and utilized in Halal avenues only. Islami Current is ideal for customers who have frequent transaction needs and require unlimited access to their to meet their personal or business expenses. Also, you have access to our entire online network of 102 Branches in 49 Cities for convenience of instant and secure intercity transactions. So enjoy full control over your funds in a Shariah compliant manner.

CONT`D The Islami Current offers you the following Key salient features:  A minimum balance of Rs. 1,000/only to open the  t facility up to four t holders  Access to the entire online branch network 102 Branches in 49 Cities  Free unlimited online intercity transactions 

Islami Foreign Currency 

BankIslami Islami Foreign Currency is ideal for businesses and individuals who would like to diversify their investment in different currencies to ensure security against currency fluctuations or want to keep foreign currency to meet their business needs. Also, you can have easy access to foreign currency with no hassles of foreign exchange conversion when you have to travel abroad or remit funds abroad to meet education, leisure or business needs.

CONT`D        

Safe Deposit Lockers Hold Mail & Stop payment facility Available in USD, GBP & EURO A minimum balance of USD 100/-or equivalent in GBP or EURO to open the t facility up to four t holders Free statement facility Free Internet Banking service Round the clock phone Banking through 111ISLAMI (475-264) or 111-BIP (247)-111 Personalized service from Customer Relationship Officers

Islami Bachat 

Our Islami Bachat is a bundle of benefits. It helps you keep up with your tradition of savings with the convenience and safety of a professional and understanding bank. Also, you earn highly attractive profits on your savings with the flexibility of making as many transactions on your as you want. Islami Bachat is ideal for customers who need to draw money for monthly expenses but would also like to earn on your hard earned savings. Corporate Employers can also avail this to provide convenience, flexibility and halal profits to their employees by opening their salary s with us.

CONT`D 

Monthly profit/loss payment on daily product basis Differential and specific pool allocation possible for large deposit holders Profit announcement at the end of every month A minimum balance of Rs. 5,000/- only to open the t facility up to four t holders Access to the entire on line network of 102 Branches in 49 Cities Unlimited over the counter deposits and withdrawals, free of charge No restrictions on intercity transactions Free 1 Card, BankIslami's ATM & Debit card Access to all ATMS linked to MNET and 1 Link throughout Pakistan Facility of making instant payments at Orix terminals for grocery, fuel ,dining and other purchases Free Internet Banking service Round the clock phone Banking through 111-ISLAMI (475-264) or 111-BIP(247)-111 Personalized service from Customer Relationship Officers Free Statement facility Hold mail and Stop payment facility Safe deposit lockers (subject to availability)

Islami Dollar Bachat 

The Islami Dollar Bachat is ideal for individuals and businesses who are eager to save in US Dollar. This saving scheme is both for Residents and Non residents who need to either save in US Dollars or remit money from or abroad for personal or business transactions. The Islami Dollar Bachat is a profit/loss bearing in USD based on the principle of Mudaraba where the Bank invests your funds in a Shariah compliant manner. The profit and loss from the investment is then shared between you and the Bank.

CONT`D 

Free Internet Banking service Safe Deposit Lockers facility available 100% interest free Monthly profit/loss payment on daily product basis A minimum balance of USD. 100/- in cash or through USD clearing cheque or valid instructions of remittances from abroad No Zakat or Withholding tax applicable t facility up to four t holders Access to the entire online branch network 102 Branches in 49 Cities No restrictions on intercity transactions Round the clock phone Banking through 111ISLAMI (475-264) or 111-BIP (247)-111 Personalized service from Customer Relationship Officers Free statement facility Hold mail and stop payment facility

Islami Mahana Munafa 

Long term investments yield high returns but delayed profit payment. With our Islami Mahana Munafa you don't compromise on any. Now you can enjoy the freedom of halal monthly gains for a prosperous present while building your wealth for a secure future. Also, Islami Mahana Munafa will provide you with security, convenience and flexibility of investment tenure to suit your needs.

CONT`D 



Free Internet Banking Service Hold Mail & Stop payment facility Safe Deposit Lockers 100% interest free Available in Pak Rupees Tenure of investment are 1, 2, 3 & 5 years Minimum amount of investment is Rs. 10,000/- only Profit/loss payment on monthly basis until the maturity date Payment of amount of investment on the maturity date Differential and specific pool allocation possible for large deposit holders Profit announcement at the begining of every month Facility of premature encashment available. In such a case, the corresponding period rate would apply, unless stated otherwise Free facility of transfer of profit and invested funds in nominated Islami Current or Islami Bachat Monthly profit/loss payment on daily product basis Round the clock phone Banking through 111-ISLAMI (475-264) or 111BIP (247)-111 Personalized service from Customer Relationship Officers Free Six monthly Statement facility

Islami Amadni Certificate 

Why take interest when you can earn Halal profit on your investment. With Islami Amadni Certificate your hard earned investment works harder to yield high expected profits so you can build your wealth for a prosperous future. You get the best of both worlds in a safe, secure and flexible package to perfectly meet your needs. If you are a salaried individual, a businessperson or a corporate entity with some long term investment funds to spare, our Islami Amadni certificate is an ideal solution for you. With our Islami Amadni Certificate, the higher your investment the higher will be your return and that too in a Shariah compliant manner. Also, you have the flexibility to choose amongst various investment tenures to suit your personal or business needs.

CONT`D 

Available in Pak Rupees Investment can be done for 1, 3, 6, 12, 24, 36 or 60 months Minimum amount of investment is Rs. 10,000/- only Payment of profit/loss and amount of investment on the maturity date Quarterly profit payment for investment of 12 months and above Differential and specific pool allocation possible for large deposit holders Profit announcement at the end of every month Facility of premature encashment available. In such a case, the corresponding period weightage would apply, unless stated otherwise Free facility of transfer of profit and invested funds in nominated Islami Current or Islami Bachat Free Internet Banking service having free Term deposit enquiry facility Round the clock phone Banking through 111-ISLAMI (475-264) or 111-BIP (247)-111 Personalized service from Customer Relationship Officers Free statement facility

Corporate Banking Services  Trade Services  Working Capital Finance  Project Finance  Musharakah Financing  Mudarabah Financing 

Investment Banking          

Advisory Private Placement Sukuk Arrangment Syndication Underwriting Trusteeship Structured Finance Listing on Capital Markets Project Financing Mergers & Acquisitions

Value Added Services Online Banking  Inter Bank Fund Transfer  Internet Banking  ATM/Debit Card  Biometric ATM  24/7 Phone Banking  eStatement  Self Service Phone Banking  Lockers 

Amounts in Rs. Million (otherwise specified)

Dec 06

Dec 07

Dec 08

Dec 09

Jun 10

Total Deposits

1,778

9,934

12,478

27,987

38,198

Total Assets

4,025

14,446

19,085

34,272

45,036

Total Financing

959

3,931

6,343

10,457

16,670

Total Investments

412

3,864

5,020

6,813

13,732

Asset to Deposit Ratio

54%

40%

51%

37%

44%

Return on Assets

-0.21%

-0.27%

-0.29%

-1.43%

0.10%

Return on Equity

-0.42%

-1.00%

-1.07%

-10.37%

0.98%

Earnings Per share (Rs.)

-0.04

-0.12

-0.11

-0.93

0.09

No. of Employees

236

563

1,188

1,471

1,337

No. of Branches

10

36

102

102

102