HABIB BANK LIMITED

Income Statement
2005-2009

Dec 31,2005 Dec 31,2006

Rupees ' 000 Rupees ' 000
Mark-up/ return / interest earned 31,041,863 42,152,520
Mark-up/ return / interest expensed 6,740,860 12,504,236
Net Mark-up Interest Income 24,301,003 29,648,284

Provision against non-performing loans and advance - net 2,976,654 2,861,093

Provision against off-balance sheet obligations and others 128,851 (45,438)
(Reversal) against diminution in value of investments (82568) (13697)
Bad debts written off directly - -
3,022,937 2,801,958
Net Mark-up/ Interest Income After Provisions 21,278,066 26,846,326

Non-Mark-up/ Interest Income

Fee, commission and brokage income 2,721,738 3,608,127
Income/ gain on investment 1,389,000 3,266,086
Income from dealing in foreign currencies 1,323,063 1,097,887
other income 1,740,141 2,174,369
Total Non-Mark-up/ Interest Income 7,173,942 10,146,469
28,452,008 36,992,795
Non-Mark-up/ interest expense
Administrative expense 13,369,154 14,588,814
Other provisions/ write-offs-net 249,033 122,510
Other charges 68,482 54,898
Workers welfare funds - -
Total Non-Mark-up/ Interest Expense 13,686,669 14,766,222
14,765,339 22,226,573
Voluntary staff separation scheme cost (VSS) 1,602,401 1,723,771

Profit Before Taxation 13,162,938 20,502,802

Taxation-Current 4,035,139 7,014,251
-Prior year (50,540) (61,738)
-Deferred 262,168 (725,836)
4,246,767 6,226,677
Profit After Taxation 8,916,171 14,276,125

Basic and Diluted earning per share 12.92 20.69

HABIB BANK LIMITED

Income Statement (Vertical Analysis)
2005-2009

Dec 31,2005 Dec 31,2006

Rupees ' 000 Rupees ' 000
Mark-up/ return / interest earned 127.74% 142.18%
Mark-up/ return / interest expensed 27.74% 42.18%
Net Mark-up Interest Income 100.00% 100.00%

Provision against non-performing loans and advance - net 12.25% 9.65%

Provision against off-balance sheet obligations and others 0.53% 0.15%
(Reversal) against diminution in value of investments 0.34% 0.05%
Bad debts written off directly - -
12.44% 9.45%
Net Mark-up/ Interest Income After Provisions 87.56% 90.55%

Non-Mark-up/ Interest Income

Fee, commission and brokage income 11.20% 12.17%
Income/ gain on investment 5.72% 11.02%
Income from dealing in foreign currencies 5.44% 3.70%
other income 7.16% 7.33%
Total Non-Mark-up/ Interest Income 29.52% 34.22%
117.08% 124.77%
Non-Mark-up/ interest expense
Administrative expense 55.01% 49.21%
Other provisions/ write-offs-net 1.02% 0.41%
Other charges 0.28% 0.19%
Workers welfare funds - -
Total Non-Mark-up/ Interest Expense 56.32% 49.80%
60.76% 74.97%
Voluntary staff separation scheme cost (VSS) 6.59% 5.81%

Profit Before Taxation 54.17% 69.15%

Taxation-Current 16.60% 23.66%
-Prior year 0.21% 0.21%
-Deferred 1.08% 2.45%
17.48% 21.00%
Profit After Taxation 36.69% 48.15%

HABIB BANK LIMITED

Income Statement (Horizontal Analysis)
2005-2009

Dec 31,2005 Dec 31,2006

Rupees ' 000 Rupees ' 000
Mark-up/ return / interest earned 100.00% 135.79%
Mark-up/ return / interest expensed 100.00% 185.50%
Net Mark-up Interest Income 100.00% 122.00%

Provision against non-performing loans and advance - net 100.00% 96.12%

Provision against off-balance sheet obligations and others 100.00% -35.26%
(Reversal) against diminution in value of investments 100.00% 16.59%
Bad debts written off directly - -
100.00% 92.69%
Net Mark-up/ Interest Income After Provisions 100.00% 126.17%

Non-Mark-up/ Interest Income

Fee, commission and brokage income 100.00% 132.57%
Income/ gain on investment 100.00% 235.14%
Income from dealing in foreign currencies 100.00% 82.98%
other income 100.00% 124.95%
Total Non-Mark-up/ Interest Income 100.00% 141.44%
100.00% 130.02%
Non-Mark-up/ interest expense
Administrative expense 100.00% 109.12%
Other provisions/ write-offs-net 100.00% 49.19%
Other charges 100.00% 80.16%
Workers welfare funds - -
Total Non-Mark-up/ Interest Expense 100.00% 107.89%
100.00% 150.53%
Voluntary staff separation scheme cost (VSS) 100.00% 107.57%

Profit Before Taxation 100.00% 155.76%

Taxation-Current 100.00% 173.83%
-Prior year 100.00% 122.16%
-Deferred 100.00% -276.86%
100.00% 146.62%
Profit After Taxation 100.00% 160.11%
Dec 31,2007 Dec 31,2008 Dec 31,2009
Rupees ' 000 Rupees ' 000 Rupees ' 000
48,342,047 61,157,813 74,751,375
18,001,496 25,523,572 33,088,536
30,340,551 35,634,241 41,662,839

8,159,702 6,746,517 8,276,180

(54,626) 372,598 (51,396)
(84310) 2,176,120 1,387,354
- - -
8,020,766 9,295,235 9,612,138
22,319,785 26,339,006 32,050,701

3,180,789 4,248,342 4,620,148

908,914 1,125,328 452,823
1,419,915 2,229,809 1,692,776
2,462,372 2,733,038 3,176,865
7,971,990 10,336,517 9,942,612
30,291,775 36,675,523 41,993,313

17,355,732 20,253,578 21,733,407

(276,111) 178,425 372,957
85,152 64,751 3,540
- 323,575 397,668
17,164,773 20,820,329 22,507,572
13,127,002 15,855,194 19,485,741

13,127,002 15,855,194 19,485,741

6,713,241 8,137,761 7,827,137
1,667,787 235,734 (1,079,473)
(3,295,442) (2,519,281) 439,434
5,085,586 5,854,214 7,187,098
8,041,416 10,000,980 12,298,643

10.59 13.18 13.50

Dec 31,2007 Dec 31,2008 Dec 31,2009
Rupees ' 000 Rupees ' 000 Rupees ' 000
159.33% 171.63% 179.42%
59.33% 71.63% 79.42%
100.00% 100.00% 100.00%

26.89% 18.93% 19.86%

0.18% 1.05% 0.12%
0.28% 6.11% 3.33%
- - -
26.44% 26.09% 23.07%
73.56% 73.91% 76.93%

10.48% 11.92% 11.09%

3.00% 3.16% 1.09%
4.68% 6.26% 4.06%
8.12% 7.67% 7.63%
26.28% 29.01% 23.86%
99.84% 102.92% 100.79%

57.20% 56.84% 52.16%

0.91% 0.50% 0.90%
0.28% 0.18% 0.01%
- 0.91% 0.95%
56.57% 58.43% 54.02%
43.27% 44.49% 46.77%

43.27% 44.49% 46.77%

22.13% 22.84% 18.79%
5.50% 0.66% 2.59%
10.86% 7.07% 1.05%
16.76% 16.43% 17.25%
26.50% 28.07% 29.52%

Dec 31,2007 Dec 31,2008 Dec 31,2009

Rupees ' 000 Rupees ' 000 Rupees ' 000
155.73% 197.02% 240.81%
267.05% 378.64% 490.87%
124.85% 146.64% 171.44%

274.12% 226.65% 278.04%

-42.39% 289.17% -39.89%
102.11% -2635.55% -
- - -
265.33% 307.49% 317.97%
104.90% 123.78% 150.63%

116.87% 156.09% 169.75%

65.44% 81.02% 32.60%
107.32% 168.53% 127.94%
141.50% 157.06% 182.56%
111.12% 144.08% 138.59%
106.47% 128.90% 147.59%

129.82% 151.49% 162.56%

-110.87% 71.65% 149.76%
124.34% 94.55% 5.17%
- - -
125.41% 152.12% 164.45%
88.90% 107.38% 131.97%
- - -

99.73% 120.45% 148.03%

166.37% 201.67% 193.97%
-3299.93% -466.43% 2135.88%
-1257.00% -960.94% 167.62%
119.75% 137.85% 169.24%
90.19% 112.17% 137.94%
 vertical

Net Mark-up Interest Income Net Mark-up

1.2 2
1.8
1
1.6

0.8 1.4
1.2
Net Mark-up Interest
0.6
Income 1
0.8
0.4
0.6

0.2 0.4
0.2
0 0
Dec Dec Dec Dec Dec Dec Dec Dec Dec
31,2005 31,2006 31,2007 31,2008 31,2009 31,2005 31,2006 31,2007 31,2008

Total Non-Mark-up/ Interest Income Total Non-Mark

0.4 1.6

0.35 1.4

0.3 1.2

0.25 1

0.2 Total Non-Mark-up/ 0.8

Interest Income
0.15 0.6

0.1 0.4

0.05 0.2

0 0
05 06 07 08 09 05 06 07 08
,20 ,20 ,20 ,20 ,20 ,20 ,20 ,20 ,20
31 31 31 31 31 31 31 31 31
c ec c c c c c c c
De D De De De De De De De
 Vertica

Total Non-Mark-up/ Interest Expense Total Non-Mark

0.6 1.8

0.58 1.6

0.56 1.4

1.2
0.54
Total Non-Mark-up/ 1
0.52
Interest Expense
0.8
0.5
0.6
0.48 0.4

0.46 0.2

0.44 0
Dec Dec Dec Dec Dec Dec Dec Dec Dec
31,2005 31,2006 31,2007 31,2008 31,2009 31,2005 31,2006 31,2007 31,2008

Profit After Taxation Profit

0.6 1.8

1.6
0.5
1.4

0.4 1.2

1
0.3 Profit After Taxation
0.8

0.2 0.6

0.4
0.1
0.2

0
0
Dec Dec Dec Dec Dec Dec Dec Dec D
31,2005 31,2006 31,2007 31
31,2005 31,2006 31,2007 31,2008 31,2009
 horizontal

Net Mark-up Interest Income

Net Mark-up Interest

Income

Dec Dec Dec Dec

31,2006 31,2007 31,2008 31,2009

Total Non-Mark-up/ Interest Income

Total Non-Mark-up/
Interest Income

5 06 07 08 09
,20 ,20 ,20 ,20
31 31 31 31
c c c c
De De De De
 horizontal

Total Non-Mark-up/ Interest Expense

Total Non-Mark-up/
Interest Expense

Dec Dec Dec Dec

31,2006 31,2007 31,2008 31,2009

Profit After Taxation

Profit After Taxation

Dec Dec Dec Dec

005 31,2006 31,2007 31,2008 31,2009