STRAREGIC VISION

Our Mission:
To improve the quality of life for millions

Our Core Purpose:

Enabling success; realizing dreams

Our Vision:
To be the most admired Financial Institution in Pakistan

MANDATE, MISSION &IMPACT Highlights 2011

Highest mandate fulfillment ever Revision of the Environmental Policy and Guidelines

Prospects 2012
Maintain mandate fulfillment at a high level Implement the revised Sustainability Policy and Guidelines

NIB Values
PASSION 1

RESPECT INTEGRITY EXCELLENCE FAIRNESS

Passion

I am driven I am committed I am determined I believe in what I do I embrace life

Respect

I appreciate different viewpoints I am receptive to the diversity of ideas I treat others as I would want to be treated I look after the community in which we live and work I contribute to the care and comfort of those around me

Integrity

I do what I say I am honest and forthright I never compromise my values I am open and honest in all my dealings I have the courage to stand up for what I believe to be true

Excellence

I strive for better I exceed expectations I am constantly improving I always try to get it right the first time I produce error free, superior quality work

Fairness

I am impartial I judge on merit I dont expect favors I listen to both sides

EXECUTIVE SUMMARY

NIB bank provides services to more than 700,000 customers through a countrywide network of 179 branches all over Pakistan. It is one of the fastest growing banks in Pakistan. NIB started operations in October 2003 with a paid up capital of Rs. 1.2 bn. Operations for NDLC, IFICs Pakistan and Credit Agricole Indosuez Pakistan were amalgamated with their assets and liabilities in April 2004. Temasek Holdings acquired 25% shareholding in NIB in March 2005 through Bugis Investments which was enhanced to over 70% in June 2005. NIB has branches all over Pakistan. NIB started as NDLC-IFIC Bank which was incorporated in March 2003, as a public limited company. NIBs vision is to rank amongst top 5 banks in Pakistan. Therefore it acquired majority shares of PICIC on June 28 2007, which also gave control of its subsidiaries including a commercial bank PCBL, an asset management company PICIC AMC and PICIC Insurance. Legal merger of PICIC & PCBL into NIB took place on 31st December 07, once all regulatory approvals were obtained. Total assets as of March 31, 2012 are Rs.162 bn. Present paid-up capital of Rs. 103 bn is amongst one of the highest in banks in Pakistan. Temasek Holdings remains the largest single shareholder with approximately 88.64% shareholding. NIB has over 2600 employees. NIB business units include: Retail Banking and Transactional Banking Small Medium Enterprises and Commercial Banking Group Corporate and Investment Banking Group / Financial Institutions Treasury of Capital Market Group

These are supported by 12 business enabling functions.

SUMMARY
This SWOT analysis and company profile is a crucial resource for industry executives and anyone looking to gain a better understanding of the company's business. WMI's 'NIB Bank (NIB) : Company Profile and SWOT Analysis' report utilizes a wide range of primary and secondary sources, which are analyzed and presented in a consistent and easily accessible format. WMI strictly follows a standardized research methodology to ensure high levels of data quality and these characteristics guarantee a unique report.

Scope

Examines and identifies key information and issues about 'NIB Bank' for business intelligence requirements Studies and presents the company's strengths, weaknesses, opportunities (growth potential) and threats (competition). Strategic and operational business information is objectively reported Provides analysis on financial ratios along with a competitor benchmarking section The profile also contains information on business operations, company history, major products and services, key employees

Reasons To Buy :

Quickly enhance your understanding of the company Gain insight into the marketplace and a better understanding of internal and external factors which could impact the industry Recognize potential partnerships and suppliers Obtain yearly profitability figures

Key Highlights:
NIB Bank Limited (NIB Bank) is a scheduled commercial bank based in Pakistan. The company offers a wide array of personal banking, commercial banking and corporate banking products and services in Pakistan. It offers saving accounts, current accounts, term deposits, auto loans, personal loans, trade finance, working capital finance, cash secured finance, insurance and protection products, cash management, chain management, asset management and investment banking services. The company is a subsidiary of Bogies Investments (Mauritius) Pte. Limited. The company operates through a wide network of 179 branches and caters to over 700,000 customers throughout Pakistan. The company is headquartered in Karachi, Pakistan.

HISTORY OF THE BANK

NIB started as NDLC-IFIC Bank which was incorporated in March 2003, as a public limited company. NIB Started operations in October 2003 with a paid up capital of Rs.1.2 bn. Operations for NDLC, IFICs Pakistan and Credit Agricole Indosuez Pakistan were amalgamated with their assets and liabilities in April 2004. Temasek Holdings acquired 25% shareholding in NIB in March 2005 through Bugis Investments which was enhanced to over 70% in June 2005. NIB has branches all over Pakistan. NIBs vision is to rank amongst top 5 banks in Pakistan. Therefore it acquired majority shares of PICIC on June 28 2007, which also gave control of its subsidiaries including a commercial bank PCBL, an asset management company PICIC AMC and PICIC Insurance. Legal merger of PICIC & PCBL into NIB took place on 31st December 07, once all regulatory approvals were obtained. Total assets as of March 31, 2012 are Rs.162 bn. Present paid-up capital of Rs. 103 bn is amongst one of the highest in banks in Pakistan. Temasek Holdings remains the largest single shareholder with approximately 88.64% shareholding. NIB has over 2600 employees. NIB business units include:

Retail Banking and Transactional Banking Small Medium Enterprises and Commercial Banking Group Corporate and Investment Banking Group / Financial Institutions Treasury of Capital Market Group

These are supported by 12 business enabling functions.

An Introduction
The NIB Bank Limited is a scheduled commercial bank and is principally engaged in banking business as defined in the Banking Companies Ordinance, 1962. It was incorporated in March 2003 as a publicly listed company. It is listed on all the three stock exchanges (KSE, ISE & LSE) of the country and has framework of 240 branches all over the Pakistan. The NIB Bank Limited is the first investment bank in Pakistan by the Temasek Holdings of Singapore, in terms of amount; it is a largest non privatized project by any foreign investor in the banking sector of Pakistan. This foreign investment by Temasek is the showcase of confidence for foreign investors interest in Pakistan. The NIB incorporation greatly improves the image and performance of Pak Banking Sector and also Pakistans investment profiles.

A Brief History
The NIB Bank Limited (formerly NDLC - IFIC Bank Limited) was incorporated in March 2003 as a publicly listed company. In October 2003, all assets and liabilities and all rights and obligations of the former National Development Leasing Corporation (NDLC) and Pakistan Operations of IFIC, Bangladesh were amalgamated with and into NIB Bank with the paid up capital of Rs. 1.2 Billion (bn). In April 2004, the Pakistan operations of Credit Agricole Indo

Suez

(the Global French Bank) were also amalgamated with and into NIB Bank. In March 2005 Temasek Holdings of Singapore acquired 25% shareholding in NIB Bank, through Bugis Investments (Mauritius)
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Pte Limited. This shareholding was further enhanced to over 70% in June 2005 by an increase in NIB's paid up capital to Rs 3.4 bn. In June 2007, NIB acquired majority shares of Pakistan Industrial Credit & Investment Corporation Ltd. (PICIC) with the aim of merging PICIC and its subsidiary PICIC Commercial Bank Limited (PCBL) into NIB. The acquisition was financed through the country's largest private sector rights issue, with resultant increase in NIB's paid up capital to Rs. 22.0 bn. With this merging, the total assets of NIB swelled upto Rs. 176.7 bn, advances to Rs. 82.2 bn and deposits to an amount of Rs. 116.7 bn as the seventh largest commercial bank in terms of distribution of network and become a top 10 bank in terms of largest Balance Sheet size & capital. The merger also resulted in making PICIC Asset Management Company (PICIC AMC) managing almost Rs. 20 bn which is now a subsidiary of NIB. And at that time an affiliated "PICIC Insurance was also established. NIB already has a shareholding in NAFA (National Fullerton Asset Management Company), an Asset Management Company (AMC) whose shareholders also include National Bank of Pakistan and Fullerton Fund Management Company; thus NIB Groups asset management business has also increased, while it has diversified into the insurance business as well.

Temasek Holdings of Singapore

Temasek is the investment arm of the Govt. of Singapore and also a premier international investor in the process of establishing pan Asian banking presence. Temasek Holdings is an investment company owned by the government of Singapore. With an international staff of 380 people, it manages a portfolio of about
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US $142 billion, focused primarily in Asia. It is an active shareholder and investor in financial services, telecommunications & media, technology, transportation, industrials, life sciences, consumer, real estate, energy & resources. In addition, the Government of Singapore has another investment arm, the substantially larger Government Investment Corporation (GIC), which invests primarily the country's foreign reserves. It has also attained perfect scores quarterly on the "Transparency Index for Sovereign Wealth Fund". (Sovereign Wealth Fund which give authority to organization to sell their assets to raise cash for new investments and doesn't require the government approvals). According to 2012 data, the financial position of Temasek Holdings was that: Revenue = $ 83.284 billion Net Income = $ 22.474 billion Total Assets = $ 185 billion The Temasek Holdings owns stakes in many large foreign companies, including Standard Chartered, Bank of China, China Construction Bank, ICICI Bank, Global Crossing, as well as many of Singapore's largest companies, such as SingTel, DBS Bank, Singapore Airlines, PSA International, SMRT Corporation, Singapore Power, Neptune Orient Lines and Media corp. It also holds investments in public icons like the Singapore Zoo and Singapore Pools, the only legal betting company in Singapore. About half of its managed assets are external to Singapore and Temasek-linked companies (TLCs) also hold an extensive global portfolio, such as SingTel's ownership of Australian telco Optus, and Singapore Airlines' 49% stake in Virgin Atlantic. Although 75% of Temasek's holdings are in Singapore, it has set a target of eventually reducing this to only one-third. Another one-third will be in developed markets and the final third is planned for investment in developing economies. In March 2005 Temasek Holdings of Singapore acquired 25%

shareholding in NIB Bank, through Bugis Investments (Mauritius) Pte Limited. This shareholding was further enhanced to over 70% in June 2005 by an increase in NIB's paid up capital to Rs 3.4 bn. The Bugis Investments (Mauritius) Pte Limited is the indirect subsidiary of Temasek Holdings of Hongkong (Singapore).

Credit Agricole Indo Suez (the Global French Bank)

The Credit Agricole Corporate and Investment Bank (Credit Agricole CIB, formerly Calyon) are Credit Agricole's corporate and investment banking entity with a staff of 13,000 employees in 58 countries. Credit Agricole CIB is active in a broad range of capital markets, investment banking and financing activities. Its activities are grouped into two major divisions: the Capital Markets & Investment Banking Division and the Financing Division. In September 2007, a Credit Agricole CIB New York trader lost the firm US $ 320 Millions. He had taken unusual positions beyond authorization and delegation. The Credit Agricole lost US $ 1.1 bn in the fourth quarter of 2007, primarily as a result of the US $ 3.3bn charge on losses attributed to the credit crisis.

IFIC Bank Limited (in Pakistan)

IFIC was setup as a joint government-private finance company in 1976 at Dhaka. The founder of this bank is Mr. Mohammad Lutfar Rahman 7 Director is Mr. Abu Tahir Mohammad Golam. The government held a 49% stake in the firm. On June 24, 1983, IFIC became a private commercial bank. While the bank is currently listed on the Dhaka Stock Exchange the government retains a 40% stake in it to this day. IFIC has over 82 branches in Bangladesh & 5 SME Centre and also has number of branches worldwide. In 1981, IFIC invested in Pakistan on the diplomatic

basis but after a lot of hard work this bank cant survive and merged them into NIB.

PICIC Commercial Bank

PICIC Commercial Bank Limited was incorporated in 1993 as Schn Bank Limited and commenced its business on 4 April 1994, with a paid-up capital of PKR 500 Million. In 1997, Al Ahlia Portfolio Securities Company, Sultanate of Oman acquired the major shareholding and changed Banks name to Gulf Commercial Bank. Thereafter, in February 2001, the Banks management again changed when Pakistan Industrial Credit and Investment Corporation acquired 60% controlling shares from Al-Ahlia and changed its name to PICIC Commercial Bank in May 2001. Since acquisition, the Bank performance has turned around and it's now the fastest growing private commercial bank in Pakistan. At the time of takeover by PICIC in February 2001, the Bank had only 15 branches. Now it is the 6th largest bank in Pakistan. On December 31, 2007, the operations of PICIC Commercial Bank were merged with and into NIB Bank Ltd. PICIC has over one hundred and twenty branches in over forty four cities including the main cities and towns of Pakistan.

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COMPANY INFORMATION
Company Registration Number Company National Tax Number 0045037 1791618-6 First Floor, Post Mall, F-7 Markaz, Address of Registered Office Islamabad Muhammadi House, I.I. Address of Head Office Chundrigar Road, Karachi Phone: 051-2650511 Fax: 92-51Phone numbers - Registered Office 2653447-8 Phone: 021-111333111 Fax :92-21Phone numbers - Head Office 32417503 Email Address info@nibpk.com 1. Fullerton Financial Holdings www.fullertonfinancial.com 2. PICIC Asset Management Detail of associated companies and their website Company links www.picicamc.com 2. PICIC Insurance www.picicinsurance.com Symbol: NIB http://www.kse.com.pk/ Symbol of the company assigned by respective Stock http://www.lse.com.pk/#/Home.asp Exchange and website links of stock exchanges x http://www.ise.com.pk/ M/s. KPMG Taseer Hadi & Co. Name of Auditor of the Company Chartered Accountants THK Associates (Pvt.) Limited Ground Floor, State Life Building No. 3 Name and address of share registrar Dr. Ziauddin Ahmed Road Karachi-75530. UAN: (021) 111 000 322

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Executive Members & Directors

Board of Directors Name
Teo Cheng San, Roland Syed Aamir Zahidi Tejpal Singh Hora Asif Jooma Chia Yew Hock Wilson Najmus Saquib Hameed Muhammad Abdullah Yusuf Badar Kazmi

Status
Chairman Director Director Director Director Director Director President / CEO

Board of Audit Committee

Chia Yew Hock Wilson Syed Aamir Zahidi Mahmudul Huq Bhuiyan Yameen Kerai Rayomond Kotwal M/s. KPMG Taseer Hadi & Co M /s. Mandviwalla & Zafar Chairman Member Member

Company Secretary Chief Financial Officer Auditors CA + Legal Advisor

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CORPORATE GOVERNANCE
Being aware of our responsibilities under the Code of Corporate Governance issued by the Securities and Exchange Commission of Pakistan, the following statements are made with regard to the corporate and financial reporting framework to meet with the requirements of Code:

The financial statements prepared by the management of the Bank present fairly its state of affairs, the result of its operations, cash flows and changes in equity. Proper books of accounts have been maintained. Accounting policies have been consistently applied in the preparation of financial statements and accounting estimates are based on reasonable and prudent assessments. International Accounting Standards, as applicable in Pakistan, have been followed in the preparation of financial statements. There are no doubts upon the Banks ability to continue as a going concern. There has been no material departure from the best practices of corporate governance as detailed in the listing regulations of the stock exchanges of Pakistan. There are no statutory payments on account of taxes, duties, levies and charges which are outstanding, except as disclosed in the financial statements.

TREASURY & CAPITAL MARLETS

In todays dynamic world, it is imperative to have access to innovative, cutting edge financing and risk management solutions that are tailor-made to suit your needs. We at NIB provide attractive range of diversified investment options backed by highly skilled expertise and experience. NIB bank limited is amongst one of the most competitive treasuries in Pakistan, providing corporate clients with a wide selection of products ranging from traditional to customized solutions. From products that meet the demands of liquidity, cash flow management, interest rate fluctuations and risk management etc, to specialized investment services, we have exactly what youre looking for. NIB bank is a One Stop Solution to all your financial needs, whether it pertains to Foreign Exchange, Fixed Income (GoP, Corporate Debt), Mutual Funds & Money Market (Deposit or Loan) transactions.

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On July 2009, NIB acquired the status of Primary Dealer (PD) granted by State Bank of Pakistan (SBP). We are now among the 10 selective financial institutions that enjoy this prestigious status.

TREASURYMARKET UNIT
Foreign Currency Products

FX Forward- Facility to hedge FX exposures though forward Sale/ Purchase of currencies FX Spot- Best ready market and spot quotes for Import, Exports & Remittances Foreign Currency Import & Export Financing Foreign Currency Bill Purchase

As the global environment becomes ever more competitive, finding the most innovative and creative solutions to our clients needs will remain the most important competitive advantage for our business.

Fixed Income & Institution Sales

Our Fixed Income Sales & Distribution desk provides investment opportunities in:

Treasury Bills (Auction & secondary market) Pakistan Investment Bonds (Auction & secondary market) Commercial Papers (IPO & secondary market) Term Finance Certificates (IPO & secondary market) Ijara Sukuks (IPO & secondary market) Term Deposits Mutual Funds distribution

Being one of the major players in the Inter-bank, as well as Primary Dealers, we are well positioned to offer the best investment advice and fulfilling investment needs. As a Primary Dealer, we also offer IPS account facility to our clients.

Structured Solution
At NIB Bank Limited, we appreciate that each client is unique with a different risk/return profile. As such, we take pride in our ability to structure investment products that are tailored to match those very unique requirements. With access to a full range of market instruments, our team provides tailor-made structured products linked to a range of underlying exposures

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We are committed to identifying, creating, and providing access to the best and most innovative investment ideas and opportunities for each of our clients, helping them build and structure their investment ideas in todays complex and challenging environment.

EQUITY & RESEARCH

Equity Investment Desk
Equity desk is responsible for managing banks equity portfolio and exploring opportunities to maximize shareholders worth by means of direct investments and providing leverage to the stock investors.

Financial and Economic Research

Research, an integral part of the treasury, prepares forecast of critical macroeconomic indicators. An interactive approach adopted with treasury segments help device farsighted investment strategy and execution of prudent investment decisions

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IPS Account Brochure

INTRODUCTION
What is an IPS account ? IPS stands for Investor Portfolio Securities. Purpose of this account is to facilitate investment in the PKR denominated GOP debt securities i.e. Pakistan Investment Bonds, Treasury Bills, Ijarah Sukuks or any other such security issued by State Bank of Pakistan from time to time on behalf of Government of Pakistan. IPS accounts enable customers to maintain custody of their investing securities with the primary dealers & banks, and also facilitate the trading of these securities with easy transfers to other accounts. To facilitate IPS account, banks need to have Subsidiary General Ledger Account (SGLA) with SBP as the same will be used for settlement of customers transactions. Please note that all Government securities are under the custody of the State bank of Pakistan, and the primary dealer acts as an intermediary between State Bank and the investors. Who is eligible to open and operate an IPS account with NIB ? Any individual or entity which has PKR denominated checking account with NIB will be eligible to open IPS account at NIB. Customer should have a unique IPS A/c number before instructing NIB for any IPS transaction. (IPS will be a non checking A/c & no instruments will be issued to customer for IPS A/c i.e. cheque book, ATM card etc.).

Government Securities-Types and Descriptions Pakistan Investment Bonds (PIBs)

These are long term Bonds issued by the government of Pakistan, offering a risk free investment to the bond holders at premium interest rates depending on the maturity of the

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bond. Government announce auction These bonds have the following features:

target

on

quarterly

basis.

Issued in tenors of 3, 5, 7, 10, 15, 20 & 30 -years maturity. Available in the secondary market for all tenors (old issues). Script less security managed through Subsidiary General Ledger Accounts (SGLA). Purchased by individuals, institutions and corporate bodies including banks irrespective of their residential status. Coupon and target amount announced by SBP in consultation with Ministry of Finance. Payment of Profit on semiannual basis. Profit is taxable @10%.

Treasury Bills (T-bills)

T-Bills are issued by the Ministry of Finance through SBP. Government conducts T-bill auction through SBP on fortnightly basis and announces quarterly targets. Treasury bills have the following features:

They are issued in 3, 6 and 12 month tenors every second week. Available in the secondary market for all tenors and time periods. The purchase price is less than the face value. At maturity the government pays the Treasury bill holder the full face value. (Also known as a discounted paper). The Treasury Bills are marketable, affordable and risk free (only carries price risk). Profit is taxable @10%.

Ijara Sukuk
Sukuk are tradable and Shariah compliant bond. They have the following features:

Three year maturity. Floating rate instrument. Payment of Profit on semiannual basis. Profit is taxable @10%.

Is there any minimum or maximum limit for investment through IPS Account?
Instruments PIBs Treasury Bills Ijara Sukuk Minimum PKR 1,000,000 PKR 1,000,000 PKR 1,000,000 Maximum** No Limit No Limit No Limit

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PROCEDURE
What is the procedure for opening an IPS account ? In order to open an IPS account, you must first open a bank account at NIB bank. Once the bank account is opened, an application needs to be sent to your branch manager to open an IPS account, along with NIC copies of:

Company Account All authorized signatories. Joint Account- All members of joint account. Single account- Account holder only.

How interest earned will be transferred to customer account ? On due dates*, for applicable securities, the profit/matured security funds in respect of balance held in the IPS will be paid by NIB in to the customers checking account. These payments will be made by NIB on the due date. Incase funds are not received in the NIB account maintained with SBP due to non reconciliation of balances in SGLA account, payment will be credited to customers account once returns are received in SBP current account. (Post reconciliation).

CHARGES
Would there be any service charges applicable to IPS account ? As per schedule of charges. In case of further queries regarding fixed income securities, please feel free to contact your nearest branch. We look forward to facilitating you at NIB Bank. *Please note that the transfer of funds would take place at the end of the day. **No maximum limit for secondary market transactions. Auction limits vary per auction target.

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PRODUCT & SERVICES

Following of the products & services are delivered to customers by NIB Bank Limited Retail Banking Retail Banking @ Alternative Distributive channels Value Added Services Corporate & Investment Banking Group (CIBG) SME & Commercial Banking Treasury & Capital Market Groups Treasury & Capital Market Groups @ Money Market Treasury & Capital Market Groups in Primary Dealers NIB IS offering several kinds of products, details of which are as under Khazana Daily Product Account Azadi Saving Account

Retail Banking
Retail banking refers to banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Most of the time services offered under retail banking include savings and transactional accounts, mortgages, personal loans, debit cards, credit cards, and so forth. The Retail Banking Service offers to customers a wide array of NIB products and services made available in the local community. At NIB we believe that people who live and work in proximity with you understand your needs better. Being embedded within your local community, we are aware of your daily challenges and are prepared to provide you financial solutions. So come bank at NIB Retail Banking because we know that nobody understands you better than your Retail Banker.

Retail Banking @ Alternative Distributive Channels

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Our customers are enjoying two types of alternatives to utilize our services in efficient manner as: ATM Phone Banking

ATM
An automated teller machine (ATM), also known as an automated banking machine (ABM) or Cash Machine, is a computerized telecommunications device that provides the clients of a financial institution with access to financial transactions in a public space without the need for a cashier, human clerk or bank teller. The NIB Bank provides state of the art banking facilities to their valued customers. NIB ATM cards give the services to access of bank account, anywhere anytime from over 4400 ATMs network across Pakistan. The customer can withdraw cash from their account, transfer funds to any 1-Link member bank account, make funds transfer within NIB Bank, pay their utility bills and mobile bills, recharge their prepaid connections, purchase electronic prepaid vouchers and enjoy the convenience of these products. The customers also print out their mini bank statement via ATM.

Phone Banking
The NIB Phone Banking is a distinctive and efficient 24/7 NonStop Banking Service available for NIB customers. It is a virtual medium for existing and prospect customers to fulfill their day to day financial needs through the telephone or cell phone at this UAN Extension: 0800-00039. This helpline will provide a lot of benefits to their customers in efficient way.

Value Added Services (Direct Pay)

A Value Added Service (VAS) is popular as a telecommunications industry term for non - core services, or in
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short, all services beyond standard voice calls and fax transmissions. However, it can be used in any service industry, for services available at little or no cost, to promote their primary business. For mobile phones, while technologies like SMS, MMS and GPRS are usually considered value-added services, a distinction may also be made between standard (peer-to-peer) content and premium-chargedcontent. NIB Direct Pay is a convenient bill payment and funds transfer facility whereby anyone can instruct instant payment of their bills and transfer funds from NIB bank account to another account. The customer can easily pay their utility bills or transfer their funds through ATMs and/or Phone Banking 24 hours a day, 7 days a week.

Corporate & Investment Banking Group (CIBG)

Corporate & Corporate

& Investmen t Banking Group Corporate Banking Investmen t Banking Financial Institution

Corporate Banking :
A Corporate Baking or Commercial Banking provides the services of financial intermediary and a bank. This type of banking also called Business Banking. It is a bank that provides checking accounts, savings accounts, and money market accounts and that accepts time deposits Corporate Banking offers a full spectrum of banking products, from vanilla debt to more structured and solution-driven transactions, to meet the operational, financial and capital raising needs of top-tier corporations and institutions.
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Investment Banking:
According to the concept of Investment Banking, the financial institution assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities. An investment bank may also assist companies involved in mergers and acquisitions, and provides ancillary services such as market making, trading of derivatives, fixed income instruments, foreign exchange, commodities, and equity securities. Unlike commercial banks and retail banks, investment banks do not take deposits. Investment Banking of NIB includes: Advisory services on transactions such as mergers and acquisitions, divestment, privatization, corporate restructuring, debt rescheduling, business modeling etc and raising money by issuing and selling securities in the capital markets. Financial Institution : In financial economics, a financial institution is an institution that provides financial services for its Clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries. Most financial institutions are highly regulated by government. Financial Institutions & Correspondent Banking
(a relationship entered into between a small bank and a big bank in which the big bankprovides a number of deposit, lending, and other services)

department coordinates the transactions between NIB and the other Financial Institutions (FIs) locally, regionally and internationally. The FIs department ensures that NIB maintains a competitive and profitable relationship with other financial institutions.

RISK MANAGEMENT FRAMEWORK

The acceptance and management of financial risk is inherent to banking business activities. It involves the identification, measurement, monitoring and controlling of Risk.

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In accordance with the Risk Management guidelines issued by the SBP, an Integrated Risk Management Group in the Bank formulates risk management Policies and Procedures in line with Banks defined strategies and to monitor the following areas: a) Credit Risk Management b) Market and Liquidity Risk Management c) Operational Risk Management

Credit Risk Management (CRM)

CRM is viewed as an ongoing activity where credit risks are regularly identified and assessed. It determines the quality of the credit portfolio and assists in balancing risk and reward. To manage credit risks appropriately, credit committees at different locations have been established.

Market Risk Management (MRM)

Market Risk Management is a control system, which allows management to closely supervise and monitor risks caused by movements in market rates or prices such as interest rates, FX rates, equity prices, credit spreads and / or commodity prices, resulting in a potential loss to earnings and capital.

Operational Risk Management (ORM)

Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. The Bank has written nd implemented its Operational Risk Policy duly approved by the Board.The Bank has also implemented tools for identification, monitoring, and management of key operational risks and has also implemented a template for collecting Operational loss..

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