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Profit Sharing Mechanism for Distribution of Profit for the month of July 2020

The Bank is currently offering Term Deposits, Saving Deposits, AL Habib Tijarat Account (Current Remunerative), AL Habib Apna Individual Account (Current Remunerative) under the principle of Mudarabah.

The Bank will calculate the profit of the deposit pool after every month end. Profit will be distributed at the Net Income level i.e. Gross Income less direct expenses, write-offs/charge-offs and loss on sale of investments. In case of comingling of Bank’s equity with depositors’ fund in pool, the Net Income/Loss of Pool shall be allocated between the Bank’s equity and the depositors’ fund in proportion to their respective share in the pool.

Net Income of the deposit pool will be shared between the Bank (Mudarib) and Depositors (Rab ul Maal) on the basis of a pre-determined profit sharing ratio.

The Bank’s profit sharing ratio will be 50% of Net Income and Depositor(s) profit sharing ratio will be 50% of Net Income after the allocation of profit to Bank’s equity in proportion to the respective share in the pool.

The profit is distributed among the account holders on the bank’s predetermined weightages, announced at the beginning of the month based on their respective category/tiers.

At the end of the month, the Bank may unilaterally reduce its profit sharing ratio for the benefit of all the deposit categories in a pool.

In case of loss, as per the rules of Mudarabah, the deposit pool will share the loss in the ratios of investment of depositor(s).


Weightages declared for the month of July 2020 are
S. # Products Weightages Assigned
1. Savings Deposit - PKR 0.96
2. AL Habib Armed Force Pensioner Saving Account0.96
3. AL Habib Islamic Asaan Account (Profit paid monthly) 0.96
4. AL Habib Islamic Asaan Remittance Account (Profit paid monthly) 0.96
5. Mahana Amdani Savings Account 0.96
6. AL Habib Tijarat Account (Current Remunerative) 0.002
7. AL Habib Apna Individual Account (Current Remunerative) 0.002
8. AL Habib Islamic Young Saver Account 1.18
9. AL Habib Senior Citizen Account 1.23
10. AL Habib One Year Senior Citizen Account (Profit paid monthly) 1.270
11. Term Deposit - 7 Days 0.92
12. Term Deposit - 1 month (1 - 9,999,999) 1.00
13. Term Deposit - 1 month (10,000,000 - 24,999,999) 1.01
14. Term Deposit - 1 month (25,000,000 - 49,999,999) 1.02
15. Term Deposit - 1 month (50,000,000 - 99,999,999) 1.04
16. Term Deposit - 1 month (100,000,000 & above) 1.07
17. Term Deposit - 3 month (1 - 9,999,999) 1.06
18. Term Deposit - 3 month (10,000,000 - 24,999,999) 1.07
19. Term Deposit - 3 month (25,000,000 - 49,999,999) 1.09
20. Term Deposit - 3 month (50,000,000 - 99,999,999) 1.110
21. Term Deposit - 3 month (100,000,000 & above) 1.125
22. Term Deposit - 6 month (1 - 9,999,999) 1.120
23. Term Deposit - 6 month (10,000,000 - 24,999,999) 1.13
24. Term Deposit - 6 month (25,000,000 - 99,999,999) 1.15
25. Term Deposit - 6 month (100,000,000 & above) 1.18
26. Term Deposit - 1 year (Profit paid monthly) 1.18
27. Term Deposit - 1 year (1 - 9,999,999) (Profit paid at maturity) 1.20
28. Term Deposit - 1 year (10,000,000 - 24,999,999) (Profit paid at maturity) 1.21
29. Term Deposit - 1 year (25,000,000 - 49,999,999) (Profit paid at maturity) 1.22
30. Term Deposit - 1 year (50,000,000 - 199,999,999) (Profit paid at maturity) 1.23
31. Term Deposit - 1 year (200,000,000 & above) (Profit paid at maturity) 1.24
32. Term Deposit - 3 years (Profit paid monthly) 1.12
33. Term Deposit - 3 years (1 - 9,999,999) (Profit paid at maturity) 1.18
34. Term Deposit - 3 years (10,000,000  - 24,999,999) (Profit paid at maturity) 1.19
35. Term Deposit - 3 years (25,000,000 - 49,999,999) (Profit paid at maturity) 1.20
36. Term Deposit - 3 years (50,000,000 - 199,999,999) (Profit paid at maturity) 1.21
37. Term Deposit - 3 year (200,000,000 & above) (Profit paid at maturity) 1.23
38. Term Deposit - 5 years (Profit paid at maturity) 1.20
39. SBP - Salary & Wages 0.31
40. IFRE (Islamic Finance for Renewable Energy) 0.40
41. ILTFF - 3 Years - Textile 0.71
42. ILTFF - 5 Years - Textile 0.51
43. ILTFF - 10 Years - Textile 0.41
44. ILTFF - 3 Years -  Non Textile 0.45
45. ILTFF - 5 Years - Non Textile 0.35
46. ILTFF - 10 Years - Non Textile 0.61

 

For Foreign Currency Deposit Pool

The Bank’s profit sharing ratio for FCY Pool (USD) will be 95% of the Net Income and Depositor(s) profit sharing ratio will be 10% of the Net Income.

The Bank’s profit sharing ratio for FCY Pool (GBP & EURO) will be 99% of the Net Income and Depositor(s) profit sharing ratio will be 1% of the Net Income.

S. # Product Weightage Assigned
1 Savings Deposit - US Dollar / Pound Sterling / Euro (0 - 4,999) 0.21
2 Savings Deposit - US Dollar / Pound Sterling / Euro (5,000 - 9,999) 0.63
3 Savings Deposit - US Dollar / Pound Sterling / Euro (10,000 - 24,999) 0.84
4 Savings Deposit - US Dollar / Pound Sterling / Euro (25,000 - 99,999) 1.03
5 Savings Deposit - US Dollar / Pound Sterling / Euro (100,000 & Above) 1.25

The above mechanism has been approved by our Resident Shariah Board Member (RSBM).