NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2012 33. EARNINGS PER SHARE 2012 2011 ------- (Rupees in '000) ------- Profit after taxation for the year 18,006,728 15,499,663 ------- (Number of shares) ------- Weighted average number of ordinary shares 1,224,179,687 1,224,179,687 ---------- (Rupees) ---------- Earnings per share - basic and diluted 14.71 12.66 33.1 Diluted earnings per share has not been presented separately as the <strong>Bank</strong> does not have any convertible instruments in issue at December 31, 2012 or 2011. 34. CASH AND CASH EQUIVALENTS Note 2012 2011 ------- (Rupees in '000) ------- Cash and balances with treasury banks 6 94,081,133 86,216,168 Balances with other banks 7 15,234,326 14,385,823 109,315,459 100,601,991 35. STAFF STRENGTH ------------ (Number) ------------ Permanent 9,056 8,784 On contract 29 27 <strong>Bank</strong>'s own staff strength at the end of the year 9,085 8,811 Outsourced 3,971 3,514 Total number of employees at the end of the year 13,056 12,325 36. DEFINED BENEFIT PLANS 36.1 General description The <strong>Bank</strong> operates a funded pension scheme established in 1986. The <strong>Bank</strong> also operates a funded gratuity scheme for new employees and for those employees who have not opted for the pension scheme. The <strong>Bank</strong> also operates a contributory benevolent fund scheme and provides post retirement medical benefits to eligible retired employees. The benevolent fund scheme and the post-retirement medical scheme cover all regular employees of the <strong>Bank</strong> who joined the <strong>Bank</strong> pre-privatization. The <strong>Bank</strong> also maintains an employee compensated absences scheme. The liabilities of the <strong>Bank</strong> in respect of these schemes are determined based on actuarial valuations carried out using the Projected Unit Credit Method. Actuarial valuations of the defined benefit schemes are carried out every year and the latest valuation was carried out as at December 31, 2012. 36.2 Number of Employees under the scheme The number of employees covered under the following defined benefit schemes are: 2012 2011 ------------ (Number) ------------ - Pension fund 7,348 7,604 - Gratuity fund 6,645 5,760 - Benevolent fund 6,386 7,064 - Employee compensated absences 3,641 4,102 - Post retirement medical benefit scheme 7,823 8,160 The pension fund, benevolent fund and post retirement medical benefit schemes include 5,349 (2011: 5,374), 2,745 (2011: 2,833) and 4,182 (2011: 3,979) members respectively who have retired or whose widows are receiving the benefits. 36.3 Principal actuarial assumptions The actuarial valuations were carried out as at December 31, 2012, using the following significant assumptions: 2012 2011 ---------- Per annum ---------- Discount rate 12.00% 13.00% Expected rate of return on plan assets 12.00% 13.00% Expected rate of salary increase 10.00% 8.00% Expected rate of pension increase 4.25% 5.25% 35
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2012 36.4 Reconciliation of (receivable from) / payable to defined benefit plans Note Pension fund Gratuity fund 2012 2011 Benevolent fund Post retirement medical benefit Employee compensated absences Pension fund Gratuity fund Benevolent fund Post retirement medical benefit ------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------ Employee compensated absences Present value of funded obligations 3,537,429 523,053 409,721 - - 3,671,958 472,157 424,851 - - Fair value of plan assets (5,137,979) (409,974) (836,962) - - (5,477,630) (381,841) (827,840) - - (1,600,550) 113,079 (427,241) - - (1,805,672) 90,316 (402,989) - - Present value of unfunded obligations - - - 943,927 1,067,421 - - - 831,508 825,137 Net actuarial gains or (losses) not recognized 1,600,550 (118,456) 123,649 170,928 - 1,748,936 (95,098) 149,817 308,083 - (Receivable) / payable - (5,377) (303,592) 1,114,855 1,067,421 (56,736) (4,782) (253,172) 1,139,591 825,137 36.5 Movement in defined benefit obligations Pension fund Gratuity fund 2012 2011 Benevolent fund Post retirement medical benefit Employee compensated absences Pension fund Gratuity fund Benevolent fund Post retirement medical benefit ------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------ Employee compensated absences Obligation at the beginning of the year 3,671,958 472,157 424,851 831,508 825,137 3,598,231 417,733 420,778 826,088 677,152 Current service cost 10,431 58,356 5,779 5,008 46,581 9,859 53,870 5,063 5,494 44,394 Interest cost 155,593 61,107 49,198 108,422 96,143 170,066 60,966 54,441 120,181 92,237 Benefits paid by the <strong>Bank</strong> (610,815) (93,440) (84,794) (106,033) (306,223) (412,233) (60,087) (79,180) (96,835) (275,283) Recognition of prior service cost - - - - 236,235 - - - - 158,412 Return allocated to other funds 36.8.1 284,869 - - - - 302,709 - - - - Actuarial (gain) / loss on obligations 25,393 24,873 14,687 105,022 169,548 3,326 (325) 23,749 (23,420) 128,225 Obligation at the end of the year 3,537,429 523,053 409,721 943,927 1,067,421 3,671,958 472,157 424,851 831,508 825,137 36.6 Movement in fair value of plan assets Pension fund Gratuity fund 2012 Benevolent fund Post retirement medical benefit Employee compensated absences Pension fund Gratuity fund 2011 Benevolent fund Post retirement medical benefit ------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------ Employee compensated absences Fair value at the beginning of the year 5,477,630 381,841 827,840 - - 5,527,239 325,781 799,917 - - Expected return on plan assets 651,709 50,375 97,571 - - 721,974 48,929 104,336 - - Contribution by the <strong>Bank</strong> - 79,253 4,618 - - - 74,545 5,096 - - Contribution by the employees - - 4,618 - - - - 5,096 - - Amount paid by the fund to the <strong>Bank</strong> (1,020,452) (98,284) (94,751) - - (771,758) (66,421) (76,885) - - Actuarial gain / (loss) on plan assets 29,092 (3,211) (2,934) - - 175 (993) (9,720) - - Fair value at the end of the year 5,137,979 409,974 836,962 - - 5,477,630 381,841 827,840 - - 36.7 Movement in (receivable) / payable under defined benefit schemes Pension fund Gratuity fund 2012 2011 Benevolent fund Post retirement medical benefit Employee compensated absences Pension fund Gratuity fund Benevolent fund Post retirement medical benefit Employee compensated absences Opening balance (56,735) (4,783) (253,172) 1,139,591 825,137 (3,592) (8,185) (180,783) 1,139,616 677,152 Mark-up receivable on <strong>Bank</strong>'s balance with the fund (1,939) (61) (168) - - (1,742) (130) (274) - - (Reversal) / charge for the year (350,963) 73,876 (55,591) 81,297 548,507 (410,926) 71,743 (64,724) 96,810 423,268 Contribution by the <strong>Bank</strong> - (79,253) (4,618) - - - (74,545) (5,096) - - Amount paid by the Fund to the <strong>Bank</strong> 1,020,452 98,284 94,751 - - 771,758 66,421 76,885 - - Benefits paid by the <strong>Bank</strong> (610,815) (93,440) (84,794) (106,033) (306,223) (412,233) (60,087) (79,180) (96,835) (275,283) Closing balance - (5,377) (303,592) 1,114,855 1,067,421 (56,735) (4,783) (253,172) 1,139,591 825,137 36.8 Charge for defined benefit plans Pension fund ------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------ Gratuity fund 2012 2011 Benevolent fund Post retirement medical benefit Employee compensated absences Pension fund Gratuity fund Benevolent fund Post retirement medical benefit Employee compensated absences ------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------ Current service cost 10,431 58,356 5,779 5,008 46,581 9,859 53,870 5,063 5,494 44,394 Interest cost 155,593 61,107 49,198 108,422 96,143 170,066 60,966 54,441 120,181 92,237 Expected return on plan assets (651,709) (50,375) (97,571) - - (721,974) (48,929) (104,336) - - Recognition of prior service cost - - - - 236,235 - - - - 158,412 Actuarial (gains) / losses (150,147) 4,788 (8,379) (32,133) 169,548 (171,586) 5,836 (14,796) (28,865) 128,225 Return allocated to other funds 36.8.1 284,869 - - - - 302,709 - - - - Employees' contribution - - (4,618) - - - - (5,096) - - (350,963) 73,876 (55,591) 81,297 548,507 (410,926) 71,743 (64,724) 96,810 423,268 36.8.1 This represents return allocated to those employees who exercised the conversion option offered in the year 2001, as referred to in note 5.10.1. 36.9 Actual return on plan assets Amongst the defined benefit plans, the pension, gratuity and benevolent fund plans are funded. The actual returns earned on the assets during the year are: Pension fund Gratuity fund 2012 Benevolent fund Post retirement medical benefit Employee compensated absences Pension fund Gratuity fund 2011 Benevolent fund Post retirement medical benefit Employee compensated absences ------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------ Expected return on plan assets 651,709 50,375 97,571 - - 721,974 48,929 104,336 - - Actuarial gain / (loss) on plan assets 29,092 (3,211) (2,934) - - 175 (993) (9,720) - - Actual return on plan assets 680,801 47,164 94,637 - - 722,149 47,936 94,616 - - 36