Bank Maskan

IN THE NAME OF GOD
was established in June 1979 following the merger of several banks, loan associations and
investment companies as a specialized state – owned bank. Bank Maskan’s main area of activity is supporting the
housing and construction activities of the governmental and private sector in Iran.
Balance Sheet Highlights
US$1 million
Assets
Liabilities
Customer Deposits
Facilities Granted to Customers
Shareholders’ Equity
20102
42,795
40,919
17,606
36,666
1,876
2009
24,732
23,473
15,377
20,566
1,259
2008
19,716
18,522
11,414
16,143
1,194
2010
3,280
179
1,613
1,416
155
2009
2,218
127
982
834
111
2008
1,996
233
1,185
911
181
2010
70.3%
9.6%
48.0 %
2.1%
47.9%
6.5%
2009
73.2%
11.3%
43.5%
2.2%
74.7%
9.0%
2008
64.3%
15.2%
22.9%
3.8%
70.7%
10.8%
Income Statement Highlights
US$ million
Revenues from Joint Investments
Revenues from Own Investments
Total Revenues
Total Expenses
Net Profit
Key Ratios
%
Operating Expenses / Operating Revenues
Net Profit / Total Revenues
Return on Equity
Return on Assets
Deposits / Loans
Capital Adequacy
1. Rial (IRR) amounts above and elsewhere in this report have been converted to USD for convenience only at the rate of IRR 10,290 (for
Balance Sheet) and IRR 10,364 (for Income Statement and Cash Flow Statement) for 1 US$ for the financial year 2010.
2. The financial year of the Bank follows the Iranian calendar year, starting on March 21 of each year and ending on March 20 of the following
year. In this report, the year 2010 corresponds to the period of March 21, 2010 to March 20, 2011.
Table of Contents
Managing Director’s Statement
Board of Directors
2010 Highlights
Principles of Islamic Banking
1
3
5
7
Iran
Housing and Construction Sector of Iran’s Economy
Iran Banking Industry at a Glance 9
12
Bank Maskan
Bank Maskan History
Mission, Vision, and Objectives Code of Ethics
2010 – 2015 Comprehensive Development Plan
Operational Performance
Mehr Housing Scheme
Financial Performance
Risk Management
Combating Money Laundering
International Banking Activities
Information Technology & E – Banking Services
Organization Chart
Human Resources and Training
Research & Development Center
Major Subsidiaries
14
15
16
17
18
21
23
26
27
28
32
33
34
36
37
Financial Statement
Excerpt from the Auditor’s Report
Consolidated Balance Sheet
Consolidated Income Statement
Consolidated Statement of Earnings
Consolidated Cash Flow Statement Balance Sheet
Income Statement
Statement of Earnings
Cash Flow Statement
41
42
43
44
45
46
47
48
49
Foreign Exchange Branches
50
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Annual Report
2010-11
Managing
Director’s
Statement
On behalf of the Board of Directors, I am honored to
present the annual report of Bank Maskan of Iran, for
the year ended March 20, 2011, another successful year
in which we met our financial and strategic objectives
and made solid progress in improving performance
across the entire organization.
The year 2010 was another determining and challenging
year for Iran’s economy and its banking system as the
instability and stagnation in global markets coupled
with increasing global unemployment, devaluation of
major currencies, and mostly negative fluctuations of
substantial economic indices exerted their influence
on the internal economies of all countries. Many
renowned international financial institutions continued
existence only through huge state bailouts, and a lot
of others struggled for survival because of persistent
shadow of 2008 global credit crisis. However, Bank
Maskan made an even more positive contribution to
the country’s development especially in housing and
construction sector.
Operational performance of the Bank continued its
sound growth path. Total number of contracts and
facilities granted for Mehr Housing Scheme rose
astonishingly by 300% and 700% respectively in 2010.
Besides, about 90% of its total approved budgets
for the year were realized. Customer deposits grew
15%, indicating society’s trust in Bank Maskan. To
acknowledge this valuable trust, the Bank increased
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Annual Report
2010-11
the amount of granted facilities by about 80% reaching
US$ 36,666 million. This exceptional augmentation
rose the share of Bank Maskan form 11.8% to 16.8% in
provision of 2010 total granted facilities of Iran’ banking
system.
The financial standing of Bank Maskan in the year
under review was robust as well. In line with its
expansionary policies, the Bank made a 50% capital
increase to US$ 1,876 million in 2010. Regarding our
stringent debt collection, and specialized banking
services, total revenues and net profit figures of the
Bank rose significantly by about 40%, and amounted
to US$ 1,613 million and US$ 155 million, respectively.
Simultaneously, almost all other key profitability,
liquidity, leveraging, and efficiency ratios of Bank
Maskan grew and stood at reliable levels by end of
2010.
To actualize its core competencies, the Bank has always
been striving to raise the level of efficiency by utilizing
innovative, modern and effective methods. To do so,
the Bank concentrated on uplifting productivity through
prioritizing internet banking, electronic banking, as
well as recognition, simplification, and betterment
of working procedures during 2010. These efforts
remarkably reduced the window transactions, saved
time for the customers, reduced cost and work load for
staff, increased the security measures, and facilitated
the flow of financial transactions.
Although much was accomplished in 2010, we are
constantly reminded that we still have further steps
ahead towards achieving our higher level vision. We
have established a healthy base and laid a strong
foundation, so that I have never been more optimistic
about the future of Bank Maskan. I am confident that
such a strong foundation and our past experience will
allow the Bank to take full advantage of upcoming
opportunities and will strengthen our competitiveness
at national and international arena.
At the end of another successful year, I would like to
extend my appreciation to our clients, correspondent
banks, the Central Bank of Iran, the Ministry of
Economic Affairs and Finance, and the Ministry of
Housing and Urban Development for their ongoing and
loyal support and I would like to thank my colleagues
on the Board of Directors for their visionary direction.
My thanks are also due to my senior management
colleagues and to all our diligent staff whose
commitment, professionalism and dedication defines
and guarantees the Bank’s success and its promotion
to an elevated and highly appreciated position.
Ghodratollah Sharifi
Chairman of the Board and Managing Director
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Annual Report
2010-11
Board of
Directors
Ghodratollah Sharifi
Chairman of the Board of Directors
and Managing Director
E-mail: [email protected]
Mr. Gholam Hossein A. Hassankhani
Board Member
E-mail: [email protected]
Mr. Sharifi has served as Chairman
of the Board of Directors and
Managing Director of Bank Maskan
since 2009. He holds a Master of
Business Administration, as well
as a Bachelors degree in Law. Mr.
Sharifi has more than 25 years of
managerial experience. Prior to his
appointment at Bank Maskan, he
served as Chairman and Deputy
Chairman of Bank Saderat Iran
(BSI).
Mr. Hassankhani has served
since 2005 as Board Member of
Bank Maskan. He holds an M.A.
in Banking Management. Mr.
Hassankhani has more than 32
years of managerial experience in
the Iranian banking sector across
a diverse range of fields, including
planning and systems, international
affairs, public relations, information
technology, and research and
development.
In addition, he currently serves
as Chairman of Navaco Company,
and Deputy Chairman of Bank
Maskan Investment Management
Company, as well as Pasokhgou
Exchange Company.
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Annual Report
2010-11
Mr. Yousof Mortezaee
Board Member
E-mail: [email protected]
Dr. Mohammad Ali Sahmani Asl
Board Member
E-mail: [email protected]
Dr. Seyed Kamaleddin Shahriari
Board Member
E-mail: [email protected]
Mr. Mortezaee has served as
Board Member of Bank Maskan
since 2005. He holds a B.A. in
Management and has extensive
banking experience. During the
past three decades, Mr. Mortezaee
served at different levels in Bank
Maskan. In 1986, he was appointed
as Head of Recruitment. Mr.
Mortezaee served in this position
until 1995 and subsequently as
manager of Vanak and Shahid
Rajaee branches.
Dr. Sahmani joined Bank Maskan
as Board Member in 2005. He
holds a Ph.D. in Accounting. In
addition to a distinguished career
as professor at various reputable
Iranian universities, Dr. Sahmani
has years of managerial and
advisory experience in different
organizations including; Financial
Advisor of Managing Director in
Shahab Khodro as well as Portfolio
Manager of Ghadir Investment
Company. Moreover, Dr. Sahmani
has acted as non – executive Board
member in several subsidiaries of
Ghadir Investment Company.
Dr. Shahriari has been appointed
as a Board Member of Bank
Maskan since April 2010. He holds
a PhD in urban development and
teaches at the University of Tehran.
During 35 years of professional
experience, he has served in a lot
of mass construction and town
planning managerial positions,
and as an engineering consultant
of various government agencies.
Mr. Shahriari is also a member of
Board of Trustees of Boushehr
Medical Sciences University, and
the Parliamentary Affairs Deputy
of the Ministry of Economic Affairs
and Finance.
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Annual Report
2010-11
2010 Highlights
Financial
(Figures based on consolidated accounts.)
40% increase in net profit reaching US$ 156 million
65% increase in total revenues reaching US$ 1,624 million
48% increase in shareholders’ equity reaching US$ 1,863 million
76% increase in assets reaching US$ 42,489 million
Operational
77% increase in total facilities granted reaching US$ 36,436 million
14% increase in customers’ deposits reaching US$ 17,481 million
Granting about 17% of total facilities of Iran’s Banking system, 5% above the previous year’s figure
Increasing the total ATM machines to 1,127, indicating a 25% growth, and the total number of branches to 1,214,
representing a 4% growth compared with the previous year
Escalating the total granted facilities for Mehr Housing Scheme to US$ 12,771 million, indicating some 31%
accumulated growth in 2010
Opening special Maskan Card savings accounts for the illiterates
Granting discounting facilities to production, commerce, and services sectors
Launching real time gross settlement system (SATNA)
Granting deposit backed Joaleh facilities
Establishing concentrated deposits systems
Expediting deals on certificates of priority for housing facilities
Implementation of 2010 – 2015 five year comprehensive development plan of the Bank
Exhibition of Bank Maskan memorial stamp
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Annual Report
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Annual Report
2010-11
Principles of
Islamic Banking
The perceptions held about interest and profit constitute
the most basic elements defining Islamic finance and,
as such, Islamic financial institutions in Iran. In line with
Iranian laws and regulations, banks raise resources
mainly through the following two products:
Gharz – al – Hassaneh Accounts
Gharz – al – Hassaneh are current and savings accounts
(as in the conventional banking system), except that
they earn no interest. Holders of current accounts
typically receive these accounts in combination with a
cheque book. Savings accounts offer incentives (up to
4%), including one or several of the following: non –
fixed prizes and bonuses in cash or in kind (usually run
using a lottery), an exemption from or a discount on
the payment of commissions and fees, and priority in
use of banking facilities. Banks consider Gharz – al –
Hassaneh accounts “their own resources” and are
required to guarantee their full nominal value.
Term Deposits
Banks are authorised to accept various types of
investment deposits ranging from short – term (6
months) to long – term (5 years). Although banks can
use their capital plus Gharz – al – Hassaneh accounts,
priority must be given to investment deposits – that is,
depositor resources. Banks can also use a combination
of their own and depositor resources to grant facilities
to a customer. Iranian banks guarantee the owners
of term deposits their capital plus a minimum return.
On top of this guaranteed return, banks charge a
commission for their service. In case the financed
activities provide a return in excess of the guaranteed
return and the bank’s commission, such excess return
is shared between the bank and the depositors.
On the lending side, Iranian laws and regulations
separate banking products into two categories:
participation contracts and constant profit contracts.
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Annual Report
2010-11
Participation Contracts
Under this type of contract, the bank provides the whole
or a part of the funding required by its customers for a
specific economic activity. The profit that results from
such economic activity is shared between the bank
and the customer according to the terms of the related
contract. These contracts consist of the following:
a. Civil Partnership – Under civil partnership contracts,
the bank provides funds to a customer (legal or
natural person) for a specific economic activity.
The customer co – invests in cash or in kind.
Related profit is shared. Civil partnership contracts
can be in the fields of production, commerce or
the service industry. Under the same scheme, the
issuing of bonds is also permissible. Commercial
banks are allowed to act as guarantors for both
the government and private sector enterprises,
and entities wishing to raise funds for projects and
specific activities through the issuance of bonds.
Profits are paid quarterly.
b. Legal Partnership – In a legal partnership, the
bank provides part of the capital for a new
company or buys shares of such a company.
These contracts are possible in the fields of
production, commerce and the service industry.
c. Mozarebeh – Under Mozarebeh contracts, one
party (the bank) provides funds that the other party
(the customer) uses for trading. Customers can
be legal or natural entities. Usage of the funds is
limited to the field of commerce.
d. Mozare’eh – Under Mozare’eh contracts, one party
(the bank) gives farm land to the other party (the
customer) for a specified duration. The customer
works on the farm land, and related proceeds are
shared.
e. Mosaghat – Under Mosaghat contracts, the owner of
trees in a garden (the bank) transfers the maintenance
and harvesting of the trees to an agent (the customer),
and the related proceeds are shared.
Constant Profit Contracts
Under this type of contract, the bank provides the
whole or a part of the funding required by its customers
for a specific economic activity. Unlike participation
contracts, the bank’s profit is already fixed at the
signing of the contract and before the commencement
of the activity. As such, the bank’s profit has to be paid
by the customer irrespective of the actual profit or loss
derived from the funded economic activity.
a. Instalment Sale – An instalment sale is a contract
whereby one party (the bank) delivers goods to the
other party (the customer) at a set price. The price
is amortised, totally or partially, on predetermined
maturity dates, through equal or unequal
instalments.
b. Leasing Conditional on Ownership – In this particular
type of leasing contract, it is agreed that the lessee,
if complying with the terms of the contract, will
obtain the ownership of the leased property upon
the completion of the contract.
c. Forward Sale (Salaf) – A forward sale is a contract
whereby the bank purchases goods produced
by the customer, paying the price in cash, and
receives the goods in the future.
d. Joaleh – refers to the obligation of a person (the
customer) to pay a certain sum or fee in return for
a certain favour according to the contract. Acting
as an agent or as a contracting party if required, a
bank may arrange a Joaleh contract for the purpose
of providing the facilities required to develop a
business.
e. Discounting – Banks can discount drafts and notes.
Finally, banks are also allowed to use some of their
own resources (including Gharz – al – Hassaneh funds
from customers) to make direct investments. Direct
investment is not considered a ‘facility’ but works on
the same principles as participation contracts.
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Annual Report
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Housing and
Construction
Sector of Iran’s
Economy
Housing and Construction
Following the recession in housing sector beginning
from mid 2008 as well as decline in housing price, the
construction activities also slowed down with a few
months’ delay all the way through 2009.
Residential Buildings Constructed
by Private Sector in Urban Areas
85
75
65
55
2005/06
2006/07
2007/08
2008/09
2009/10
number (thousand units) (right scale)
total floor space (million square meters)
Private sector investment in new buildings in urban
areas reached Rial 297.5 trillion in 2009, indicating 5%
reduction compared with the year before. Private sector
investment in Tehran fell by 11% to Rial 60.3 trillion,
representing 20% of total investment in urban areas.
Moreover, investment in new buildings of large cities
and other urban areas declined by 5.1% and 2.5%,
respectively. This reduction is mainly attributable to the
recession prevailing in the housing and construction
sector as well as decrease in the price of construction
materials in this year. The total number of residential
buildings completed by private sector in urban areas
rose by 11% to 667,000.
Facilities Granted to the
Housing Sector
Compared with 2008, facilities granted by banks
and credit institutions to non – public housing sector
increased by 21% to Rial 402.6 trillion. Based on the
report released by Bank Maskan, Rial 81.6 trillion
facilities were paid in 2009, showing 88.3% rise
compared with the previous year. In 2009, facilities
extended by Bank Maskan in the form of civil
partnership and installment sale amounted to Rial 43.2
and 34.7 trillion, indicating 199% and 28% increase,
respectively. Active participation of Bank Maskan in the
extension of facilities to the Mehr Housing Scheme
is the main factor behind the remarkable rise in civil
partnership facilities.
Following approval of the Money and Credit Council,
a credit line of Rial 35 trillion, aimed at extending
credit to Mehr housing developers and contractors
was made available for the year 2009. Based on the
CBI guidelines, the Mehr housing developers and
contractors will receive up to Rial 250 million for each
unit of housing during the construction period, all of
which can be transferred to final purchasers under
installment sale contracts. Moreover, according to
Supervisory Package of the CBI for 2009, banks
and non – bank financial institutions (excluding Bank
Maskan) are banned from providing mortgage credit
facilities for housing purchase to their subsidiaries,
as this would encourage speculative behavior in the
housing market.
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Annual Report
2010-11
Scheduled Facilities (Billion Rials)
Number
2008/09 2009/10
Land preparation
90,303 285,942
Land allocation on a 99 – year lease
10,681 138,752
rental houses
16,947
15,160
Construction of housing in old urban areas
11,633
14,183
New technologies and industrial construction
21,363
7,493
Renovation and refurbishment of rural housing 171,765 166,538
Special groups
22,674
20,509
Total
345,366 648,577
Amount
Percentage change
2008/09 2009/10 Number Amount
692.1 2,646.7
216.6
282.4
439.8 7,446.9
1,402.9 1,631.3
-10.5
16.3
1,143.8
1,817.8
21.9
58.9
2,110.2
980.2
-64.9
-53.5
10,364.9 9,124.1
-3.0
-12.0
2,627.7 2,656.2
-9.5
1.1
18,781.4 26,303.2
87.8
40.0
Government Contribution to Mehr Housing Scheme
1000
800
600
400
Units in finishing phase
Units in insulation and drywall phase
Units in framing phase
Units in foundation phase
Units with a construction permit
Units with a construction contract
0
Land allocation (residential units)
200
Qualified applicants (person)
The performance of Mehr Housing Scheme shows
remarkable advancements by early 2010. According
to statistics, 905 thousand applicants registered
for housing through this scheme, 638.4 thousand
construction contracts were signed, and the allocated
land for the program reached the capacity of 892.4
thousand units by end of 2009. Simultaneously, 322
thousand units are in the foundation and subsequent
phases. That is to say, 36% of qualified applicants have
entered the construction phase.
Mehr Housing Scheme Performance
From the Beginning to March 2010
Thousand Units
According to the Budget Law for 2009, a sum of Rial
13.8 trillion was allocated to the acquisition of national
non – financial assets for the housing sector as well
as urban and rural development. Accordingly, based
on the data released by the Treasury General, Rial 12.1
trillion was paid by the government by end of 2009,
indicating 88% realization of the approved figure.
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Annual Report
2010-11
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Annual Report
2010-11
Iran Banking
Industry at a
Glance
As an unquestionable outcome of persistent shadows
of global financial crisis, as well as continued imposed
global economic difficulties, Iran’s monetary sector
encountered many encumbrances in its international
dealings. This, joint with government policies aimed
to reforming banking system, created an atmosphere
that require precise scrutiny of likelihoods, and highly
experienced management in charge.
The interest rate on facilities offered by private on
exchange contracts was reduced by 13% during 2008,
compared to those of state – owned banks, which
charge 12%. In addition, considering the unified interest
rate regulation among private and state – owned banks
decreed by the CBI, it appears that the banking system
is entering a new competition era.
In recent years, banking system infrastructures for
electronic payment and settlement experienced
major developments. The Automated Clearing
House System (PAYA) as the main infrastructure for
processing individual and multiple payment orders
was put into operation in January 2010. Moreover, the
legal foundation for the Scripless Securities Settlement
System (TABA) as the electronic infrastructure for
issuance and settlement of various securities, and
one of the components of the comprehensive and
integrated payment system was established in this
year. For the facilitation and standardization of interbank
transactions of the Iranian banks, Iran Bank Account
Number (SHEBA) was established, and declared to
banks for implementation.
Electronic banking market including payment
instruments and equipments, telephone banking and
internet banking continued remarkable shoot up. The
number of cards issued by the banking system rose
35% to 101.7 million. Among these cards, 77.4% were
debit cards, 22.2% prepaid cards, and 0.5% cards.
Moreover, about 12 thousand e – money cards were
issued by end of 2010, indicating limited activity of
banks in this field
Electronic Payment Instruments
ATM
POS and PINPAND
ATM Cards
2009
16,816
1,176,768
75,263,215
2010
20,658
1,541,889
101,752,168
% of Change
23%
31%
35%
Source: Ministry of Economic Affairs and Finance
In 2010, the number of Automated Teller Machines
(ATM) went up by 23% to 20,658. Furthermore
because of enticing promotions, customers’ inclination
to purchase using their ATM cards boosted the number
of Pin Pads and POSs to 1,541,889 (31% growth),
revealing banks’ sound resolution for expanding
electronic payment devices, and the inclination of public
to use new payment instruments in daily transactions
as well.
Net claims of the Central Bank on the public sector
in 2009 was one of the most significant increasing
factors affecting monetary base growth, that is 3.6%
rise in public sector’s indebtedness to the Central
Bank (Rial 4.7 trillion), and 23.7% fall in public sector’s
deposits with the CBI (Rial 56.8 trillion). The expansion
of monetary base has continued in 2010 as well.
Moreover the CBI’s claims on banks declined by 29.5%
(Rial 70.8 trillion), owing to extension of short – term
credit lines by the CBI for commercial and specialized
banks in order to settle claims of the CBI emanating
from repurchase of Iran – Checks by these banks. The
CBI extended these lines to banks to preserve their
level of lending operations to production sectors.
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Annual Report
2010-11
Balance of non – public sector deposits with banks and
credit institutions amounted to Rial 2,164 trillion at the
same period, showing 24% growth compared with the
previous year. Share of private banks and credit institutions
of total deposits of non – public sector reached 62.4%
at the end of 2009. This expansion was due to a new
classification of banks resulting from privatization of Bank
Saderat Iran, Bank Mellat, Bank Tejarat, and Bank Refah.
The total balance of the banking system at the
beginning of 2011 was Rial 2,890 trillion, indicating a
35% increase for the year 2010. Overall, the state –
owned and private banks’ shares of growth in lending
were 35.3% and 33%, respectively.
State – owned Banks
2009
2010
Total Deposits
1,945,202 2,492,557
1
Facilities granted to production sector 1,240,240 1,772,515
Facilities granted to private sector
1,705,389 2,337,243
Total Facilities Granted
1,816,949 2,460,092
Billion Rials
Private Banks
2009
2010
455,717
583,685
150,814
178,710
323,216
429,934
323,216
429,934
Total
2009
2010
2,400,919 3,076,242
1,391,054 1,951,225
2,028,605
2,767,177
2,140,165 2,890,026
Source: Ministry of Economic Affairs and Finance
By end of 2010, the number of banks branches reached 17,513. The share of state – owned banks remained constant,
whereas the share of private banks rose by some 17% (147 branches), leading to an overall 1% growth in the
banking system of Iran.
Facilities Granted to Various Economic Sectors
Billion Rials
1000
800
600
400
Industry and Mine
Agriculture
Housing
Trade and Services
200
0
2009
2010
1. Housing, agriculture, industry, and mining sectors
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Annual Report
2010-11
Bank Maskan
History
The history of Bank Maskan dates back to the year
1938, when Bank Rahni Iran was established to support
the construction of new housing in urban areas.
Bank Rahni Iran was established with an initial capital
of Rial 200 million through a joint initiative of the
Ministry of Economic Affairs and Finance and Bank
Melli Iran. Primarily aimed at financing Iran’s housing
and construction sector, it began offering real estate
secured housing related loans, in order to facilitate the
purchase, construction, and repair of housing units.
The Bank also granted loans to building societies and
construction companies. Expanding its field of activity,
Bank Rahni was embarked directly on construction
operations in 1944; and has accomplished numerous
large – scale construction projects ever since.
On June 7, 1979 Bank Maskan was established through
merger of Bank Rahni Iran, Bank Sakhteman (Building
& Construction Bank), Iranian Banks Construction
Investment Company, Kurosh Bank, Ekbatan Bank and
Pasargad Bank, as well as other savings and mortgage
associations around the country.
Classified as state – owned, the basic mission of Bank
Maskan as a specialized bank was to support the
development of housing and construction activities
of the governmental and private sectors in Iran. The
Bank is the unique financial arm of Iranian government
in execution of Mehr Housing Scheme. This Scheme
is designed in 2007 to provide the majority of Iranian
people with the opportunity of becoming housing
owners. The process of granting facilities to this
scheme is accelerated during recent years.
The initial capital of the Bank was Rial 44.5 billion.
After several capital increases due to expansion of
operations, it reached Rial 18,297 billion (US$ 1,683
million) in March 2011.
To further support the monetary section of the country,
Bank Maskan included all available commercial banking
services in Iran on its field of activities from the date of
incorporation. Opening 51 new branches during 2010,
the network of Bank Maskan now comprises of 1,214
branches. These branches operate in all major urban
areas throughout the country, and render tailor – made
specialized services to development of the Housing
and Construction Sector of Iran’s economy.
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Mission, Vision, and Objectives
Mission
Bank Maskan is a specialized bank, dedicated to
active cooperation for economic development of Iran,
especially in housing and construction sector, through
offering all Islamic banking as well as a variety of modern
financial products and services that meet international
standards to individuals and corporate customers.
We want to create value for all our customers by:
• Providing the highest level of personal service to
each and every client;
• Offering a safe workplace that attracts, retains
and motivates high performers by stimulating
innovation, rewarding excellence and treating
people with respect;
• Acting professionally, responsibly and with integrity
in everything we do;
• Contributing effectively to the development of the
Iranian housing and construction sector within the
strategic framework set by the government.
Vision
Objectives
Bank Maskan aspires to foster its position as the “bank
of choice” for the Iranian housing and construction
sector. To support this vision, the Bank is committed:
• Financing the housing and construction sector;
• Permanent increase in the market share of the
Bank;
• Developing electronic banking;
• Managing all risks;
• Elevating the level of productivity;
• Optimising the resources and resources allocation
management;
• Proactive Liquidity management;
• Human resource training and development.
• To expand its fields of activity to other economic
sectors, while keeping housing and construction
as the main area of concentration;
• To develop its international banking services
outside the country via taking over or becoming
shareholder of foreign banks, and establishing
foreign branches;
• To diversify its scope of investments, by financing
various economic activities;
• To create value for customers from increasing
the quality and the variety of banking services,
and fostering the level of electronic services; their
interest comes first;
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Annual Report
2010-11
Code of Ethics
Bank Maskan has adopted a code of ethics that consists
of a set of values, principles and standards to guide
decision making and conduct in various situations that
may arise in the context of employer – employee and
employee – client relations.
Key principles of our Code of Ethics are as follows:
• Employees shall pay attention to expectations,
demands, needs and complaints of customers to
advance the Bank and improve intra – organizational
processes;
• Employees shall be accommodating and patient at
any time, any place and under any work condition
to service customers in a pleasant and professional
manner;
• Employees shall listen to customers; their interest
comes first;
• Employees shall pay special attention to punctuality,
commitment and accuracy in providing services to
customers;
• Employees shall act with honesty and good faith
and shall not discriminate customers or colleagues
in any way;
• Employees shall contribute to the creation of
competitive advantages for the Bank through
introduction of new ideas aimed at adding value for
the Bank, its customers and the society at large;
• Employees shall put the welfare, health and safety
of the society before private interests;
• Employees shall be truly committed to the principle
of customer satisfaction;
• Employees shall apply their full skills and knowledge
in the interest of their colleagues and customers;
• Employees shall obey all laws, rules and regulations
in all aspects of their work;
• Employees shall ensure a proper business conduct,
reject all forms of bribery, protect the Bank’s assets
and be transparent.
17
Annual Report
2010-11
2010 – 2015
Comprehensive
Development Plan
Dedicated to render state – of – the – art banking products
and services, Bank Maskan regularly makes revisions to
all aspects of its operations. Accordingly, a five – year
Concentration
Process Improvement
comprehensive development plan is designed in the
previous year and has been launched during 2010. This
plan is aimed at enhancing following areas:
Excerpt from Objectives / Operational Plans
•
•
•
•
Increasing productivity;
20% growth of average available resources per capita and per branch after 5 years;
Initiating EFQM Excellence model;
Revising and optimizing the arrangement of human resource, banking processes, and performance
appraisal indicators;
• Executing miscellaneous staff training and development plans.
Resource Allocation
•
•
•
•
•
Optimizing resource allocation;
Maintaining the average portion of Civil Partnership facilities between 40% and 50%;
Increasing the short – term facilities, through exerting corrective credit strategies;
Increasing the portion of Participation Contracts;
Establishing the resources allocation and management model for Maskan Saving Fund.
Risk Management
•
•
•
•
•
Optimizing the risk management processes and operations of the Bank;
Establishing comprehensive customers information database;
Designing the credit rating system of the Bank;
Designing comprehensive information and statistics plan;
Strengthening the supervisory units of the Bank.
E–Banking
•
•
•
•
•
•
Developing the electronic banking network around the country;
Elevating the quality and quantity of available electronic services;
Launching the Core Banking System;
Installing banking booths;
Providing the modern required hardware and software;
Launching Fiber – Optic and satellite communication networks of the Bank.
Marketing and Customer
Orientation
•
•
•
•
•
•
Growing market share of the Bank;
Promoting to the 3rd ranking in Banking Network of Iran;
40% average increase in all resources;
Raising the portion of Gharz – al – Hassaneh saving and current deposits to 8% and 6% respectively;
Designating new markets;
Accumulating the number of branches to 1,400, in the end of the Plan.
Mandatory Financial
Facilities
•
•
•
•
Allocating the remained IRR 37,000 billion of the line of the credit approved for Mehr Housing Scheme;
Constructing another 100,000 rural residential units;
Making all operations related to mandatory facilities concentrated;
Designing a cash flow model for mandatory facilities repayment.
Financial and Liquidity
Management
•
•
•
•
•
•
Optimizing financial and liquidity management;
Defining five – year financial strategies according to the major objectives of the Bank;
Applying SWOT analysis on financial management system of the Bank;
Efficient investment management;
Controlling and amending the resource allocation processes at branch managements;
Making the financial information of branches management available on – line.
Human Resource
Development
• Decreasing the number of employees to 2,500 by end of the Plan, regarding the automation network
development plans;
• Implementing ISO 10015 educational standards;
• Designing comprehensive education and training system of the Bank;
• Implementing “Promotion Based on Competency and Expertise” plan;
• Holding specialized short and long term education and training plans for various departments of the Bank.
18
Annual Report
2010-11
Operational
Performance
Despite the overall domestic and international
difficulties faced by the Iranian banking system in
2010, Bank Maskan enjoyed another year of strong
performance. These achievements are indebted to the
continued support of shareholders as well as efforts
of the Bank’s management and staff. Most major
performance indicators of the Bank depict a high rate
of growth during the year.
Electronic banking recorded a high increase, underlining
the Bank’s objective to focus on high speed and less
expensive distribution channels. To meet the standard
ratio of about 8 million issued cards to ATMs, Bank
Maskan increased the number of its ATMs by 25% in
2010. In addition; it expanded the number of branches
from 1,163 to 1,214.
Number of Branches and ATMs
1400
1200
1000
800
600
400
200
0
2008
2009
2010
Branches
ATMs
Number of POS and PINPAD Terminals
Number of Issued Cards
25000
9,000,000
8,000,000
20000
7,000,000
6,000,000
15000
5,000,000
10000
4,000,000
3,000,000
5000
0
2,000,000
1,000,000
2008
2009
POS
2010
PINPAD Terminals
0
2008
2009
2010
19
Annual Report
2010-11
Facilities Granted to Customers
From the Bank’s total loan portfolio, US$ 35,199 million
(96%) was granted to the housing sector, US$ 367
million (1%) to the industry and mining sector, and
US$ 1,100 million (3%) to the commerce and services.
Breakdown of Facilities - by Sector
These distributions clearly indicate the core activity of
the Bank in the housing sector.
Facilities Granted
40,000
35,000
30,000
25,000
USD Million
Bank Maskan offers different types of credit facilities all
following the principles of Islamic, usury – free banking.
Customers include natural and legal entities engaged in
housing and construction related activities. All loans are
secured by some type of collateral including residential
properties, shares of companies listed on Tehran Stock
Exchange and other negotiable instruments. To further
comply with its mission statement, the Bank increased
the total amount of facilities by 78% in 2010. This is
mainly attributable to 81% growth in facilities granted
to private sector.
20,000
20,000
15,000
10,000
5,000
0
2007
2008
2009
2010
Breakdown of Facilities - by Type
3.5%
3.9% 0.015%
18.2%
1.7%
1.2%
75.5%
95.9%
Private Sector
Civil Partnership
Insttalment Sale
Public Sector
Joaleh
Joaleh
Bonds
Gharz-al-Hassaneh
Bank Maskan provided about 17% of total granted facilities in the banking system of Iran during 2010, showing a 5%
growth compared with the previous years’ figure.
20
Annual Report
2010-11
Bank Maskan offers short, medium, and long – term
deposit accounts in both Rial as well as foreign
currencies. The depositors include individuals, small,
medium and large corporations. The Bank absorbed
about 8% of total deposits in the banking system of
Iran in 2010. Natural personalities accounted for 88.3%,
and legal personalities for 11.7% of deposits
of deposits. To attract more resources, Bank Maskan
issued Certificates of Deposits with a fixed interest
of 16%. At balance sheet date Bank Maskan held Rial
111,720 billion (US$ 11,497 million) in deposit accounts.
In 2010 guaranteed minimum interest paid on term
deposits ranged from 9% p.a. for short – term deposits
to 17% p.a. for long – term deposits. Interest is
calculated and paid on a daily basis for short – term
deposits and on a quarterly basis for all other types
USD Million
Customer Deposits
2010 Combination of Term Deposits
2010 Combination of Deposits
6%
Costomer Deposits
20,000
17,500
15,000
12,000
10,000
7,500
5,000
2,500
0
2007
2008
2009
2010
20%
6%
45%
7%
49%
60%
7%
Short-term
Long-term
Special Short-term
Maskan Saving fund
Term
Saving
Other
Current
USD Million
Deposits and Loans
40,000
36,000
32,000
28,000
24,000
20,500
16,000
12,500
8,000
4,000
0
2006
2007
2008
2009
2010
Loans
Deposits
In spite of the change in the depositing pattern of clients,
total deposits show a healthy growth. Also, as a result
of our knowledge – based resource management and
accurate account monitoring, the Bank managed to
substantially increase the loans to deposits ratio during
2010. The increase of loans against deposits which
started in 2006 marks a higher growth of profit. At the
end of 2010, loans to deposits ratio was 208%.
21
Annual Report
2010-11
Mehr Housing
Scheme
Iranian young population representing the majority of
the whole society is confronted with a serious need
for housing, and actions are required to be taken to
meet the increasing demands of the new generation,
especially the lower income class.
2006 head count indicated the deficit of 1.5 million
housing units. Moreover, there are more than 800,000
matrimonies per annum which exacerbate the
shortage. Adding to that statistics the renovation of
more than 5 million units both in urban and rural areas,
it is forecasted that the country needs around 15 million
housing units in the next 10 years.
Mehr Housing Scheme aims to cover a part of this
shortage by construction of around 2 million housing
units in 5 years. In this scheme, financial institutions
are in charge of offering facilities to eligible applicants
for buying apartments.
As the only bank specialized in the housing sector of Iran
incorporated to support the development of housing
and construction activities of the governmental and
private sectors, Bank Maskan has a dominant position
in this scheme. In recent year, Bank Maskan took over
the whole operation of the scheme and so far it’s the
only bank offering facilities to the applicants.
During 2010, about 2 million Mehr Housing contracts,
with total value of Rial 255,553 billion were signed,
indicating 300% and 700% growth compared with
the previous year, respectively. According to the latest
estimates, the overall accumulated progress of the
project by end of 2010 was some 31.3%. The table
below indicates the performance of Bank Maskan in
2010:
Number of Units
Site Preparation Facilities
99 – Year Land Lease
Rural Housing Construction
Urban Renovation Facilities
Total
2008
51,895
4,723
56,618
2009
293,020
151,701
56,175
9,280
510,186
2010
606,414
1,013,813
300,132
64,127
1,984,486
Approved Amount (Billion Rials)
2008
526
661
1,187
2009
2,933
21,692
4,017
1,337
29,979
2010
5,998
210,053
27,540
11,525
255,116
22
Annual Report
2010-11
Registered
2010
# of Units
Site Preparation
99 – Year Land Lease
Approved
Facilities Granted
Price
Price
# of Units
(Billion Rials)
(Billion Rials)
620,082
1,068,113
6,123
221,162
606,414
1,013,813
5,998
210,053
# of Units
Price
(Billion Rials)
598,198
1,001,807
5,751
97,778
Billion Rials
Mehr Housing Scheme Facilities
260,000
240,000
220,000
200,000
180,000
160,500
140,000
120,500
100,000
80,000
80,000
60,000
40,000
20,000
0
255,116
130,676
29,979
1,187 568
2008
Approved
Granted
10,571
2009
2010
23
Annual Report
2010-11
Financial
Performance
Total Assets
Bank’s total assets enjoyed a remarkable growth over
the past few years. Amounting to US$ 42,795 million,
total assets on the balance sheet date show a 73%
increase compared to 2009. The increase in assets
is mainly due to a 78% rise in facilities granted to the
private sector.
Shareholders’ Equity
On the balance sheet date of the year under review,
Bank Maskan’s shareholders’ equity showed an
increase by 49% from US$ 1,259 million in 2009 to
US$ 1,876 million. This increase is mainly due to an
increase in share capital.
45,000
2,100
40,000
1,800
1,500
30,000
USD Million
USD Million
35,000
25,000
20,000
15,000
300
5,000
0
2007
2008
2009
2007
2010
Total Liabilities
Bank Maskan’s total liabilities grew in 2010 by 74% to
US$ 40,919 mainly as a result of growth in amounts
due to the Central Bank of Iran as well as increase in
various types of customer deposits.
2009
2010
350
40,000
300
USD Million
35,000
USD Million
2008
Net Profit
Bank Maskan’s net profit for the year 2010 rose
significantly by 40%, from US$ 111 million in 2009
to Rial 1,932 US$ 155 million, mainly as a result of
extensive growth in operating revenues. The fall in
2008 – 9 figure occurred because the Bank underwent
an increase in operating expenses, mainly due to a
135% increase in the interest paid to the Central Bank
of Iran.
45,000
30,000
25,000
20,000
15,000
250
200
150
100
10,000
50
5,000
0
900
600
10,000
0
1,200
2007
2008
2009
2010
0
2007
2008
2009
2010
24
Annual Report
2010-11
Total Revenues
Bank Maskan’s total revenues also grew by 41% from
US$ 982 million in 2009 to US$ 1,613 million in 2010,
as a result of an increase in operating revenues.
Total Expenses
Bank Maskan’s total expenses increase by 70% from
US$ 834 million in 2009 to US$ 1,416 million in 2010,
mainly due to the increase of interest paid to the
Central Bank of Iran and other operating expenses.
1800
1600
1400
1500
USD Million
USD Million
1200
1250
900
600
1000
800
600
400
300
200
0
2007
2008
2009
2010
0
2007
2008
2009
2010
25
Annual Report
2010-11
26
Annual Report
2010-11
Risk Management
Risk is an inherent component of banking activities. Thus,
effective risk management is critical for establishing a
sound financial foundation and reasonable budgeting
in every bank. In view of this, Bank Maskan has taken
a comprehensive risk management policy, through
which various types of risk could be optimized via both
separated and integrated approaches. The scope of
various risk categories such as liquidity risk, credit risk,
market risk, and operational risk are defined by this
policy. It also defines the risk management procedures
consisting of the identification, assessment,
monitoring, controlling procedures of target risks.
In this regard, Bank Maskan has established a Risk
Management Committee to carefully examine any risk
related issues and make appropriate decisions prior to
implementing subsequent measures. This committee
is comprised of two board members and senior
managers. The board members review and approve
the risk management strategies and policies of the
Bank. Senior managers are responsible for presenting
regular reports on progress of risk management plans
to the committee. The committee ultimately ensures
and monitors effective application of policies and
procedures.
Credit Risk
Credit risk is the risk of loss of principal or loss of a
financial reward stemming from a borrower’s failure to
repay a loan or otherwise meet a contractual obligation.
Credit risk arises whenever a borrower is expecting
to use future cash flows to pay a current debt. Bank
maskan applies restrictive particular – aggregate
approaches to financial transactions simultaneously,
in order to maintain a healthy asset portfolio for the
whole Group. The Group’s credit status is always
under consideration and is being reported to the risk
management committee on a regular basis.
Liquidity Risk
Liquidity risk is the risk stemming from the lack of
marketability of an investment that cannot be bought
or sold quickly enough to prevent or minimize a loss.
By holding a sufficient level of highly liquid securities,
the financial management department ensures that
the Bank’s funding capabilities are sufficient to meet
its short and long term obligations. The committee
approves related resource allocation plans on a
monthly and annual basis. Daily liquidity status of the
Bank is being reported to senior managers by financial
management department.
Operational Risk
Operational risk includes risks resulting from
breakdowns in internal procedures, people and
systems, or from external events. The Bank’s
comprehensive risk management system entails
policies for handling various operational risks such as
legal, compliance, human resource, and force majeure
risks. The Bank has established Risk Management
Division accountable for thoroughly controlling
operational risk issues as well as risk assessment and
measurement activities. Moreover, many organizational
sub – units are founded to undertake complete control
over each type of operational risks.
Compliance Risk
Compliance risk is defined as possibility of realizing
earnings, or operating businesses resulted from
infringement of laws, regulations, or stipulated practices
and standards of a system, industry, or government.
The Bank has launched a systematic approach to
identify, assess, rank, and counteract Islamic Republic
of Iran’s rules and regulation compliance risk.
27
Annual Report
2010-11
Combating Money
Laundering
In line with the guidelines of the Central Bank of Iran,
Bank Maskan has created an Anti – Money Laundering
Committee. The members are senior managers drawn
from various departments across the Bank, in order to
provide a multi – disciplinary approach. The skill sets
drawn upon include knowledge of credit analysis, legal
and regulatory issues, operations and technology as
well as products and services.
The Committee is responsible:
• To investigate accounts identified through internal
or external information or by the Bank’s monitoring
systems as engaging in unusual or suspicious
activity;
• To recommend new and modified anti – money
laundering procedures and policies;
• To terminate account relationships suspected of
being inconsistent with, or presenting unacceptable
risk or being in violation of anti – money laundering
laws and regulations.
Generally, the anti – money laundering policy of Bank
Maskan is designed to ensure that all employees and
businesses of the Bank are well informed with respect
to their customers and the nature of the transactions
processed through their accounts. In this context, Bank
Maskan took the following measures during 2010:
• Declaration of rules and regulations about anti –
money laundering, issued by the Central Bank
of Iran and the Ministry of Economic Affairs and
Finance to the Bank’s network;
• Designing and holding several related training
courses and workshops within the Bank;
• Ensuring observance regarding customer
identification (KYC), obtaining and verifying
information and record retention;
• Investigation of accounts identified through internal
or external information or by the Bank’s monitoring
systems as engaging in unusual or suspicious
activity;
• Termination of account relationships suspected of
being inconsistent with, or presenting unacceptable
risk or being in violation of anti – money laundering
laws and regulations;
• Ensuring observance regarding customer
identification (“Know Your Customer” principles),
obtaining and verifying information and record
keeping. It is incumbent upon the relationship
manager to perform the requisite KYC due
diligence involved in a new customer relationship.
The policies also address the significance of
thorough KYC procedures and monitoring of
foreign correspondent bank relationships;
• Protecting the reputation and integrity of the Bank.
Furthermore, internal policies define the responsibility
of each department within the Bank to perform its own
assessment of risk to money laundering activities, and
to develop risk – based policies and procedures taking
into consideration its services, customer characteristics
and industry risk. Each department’s policies and
procedures contain a system of internal controls
to provide for proper record keeping and reporting
of suspected money laundering activities, which is
reviewed and updated annually or as appropriate.
28
Annual Report
2010-11
International
Banking Activities
The International Affairs Division started operation in
1993, considering the necessity of global expansion.
Soon, many branches were equipped and prepared for
offering international banking services.
As a result of offering continuous and high quality
services, many customers have been attracted to our
international services. Bank Maskan is a well – known
bank internationally because of its on – time paybacks.
It furnishes all types of SWIFT transactions, brokerage
services, letters of credit, forex, letters of guarantee,
import and export financing and other international
transactions.
During 2010, the Bank’s presence in the international
market and its international transactions notably grew.
Also the Bank’s L/C business rose by 60%. These
growth rates directly lead to 5 times increase in the
Bank’s revenues. Moreover, Bank Maskan expanded its
relations with correspondent banks mainly in Europe,
Middle East and East Asia, and increased the number
of Forex branches to 60 by end of the year.
29
Annual Report
2010-11
Bank Maskan aims at development of its global activities.
Consequently plans for improvement of hardware
infrastructures and software are under implementation.
In addition, various training programs are offered and
presented to further enhance staff knowledge based on
the international banking aspect and promote the Bank’s
services. A short description of all international services
offered by Bank Maskan is presented below:
Import Letters of Credit
With assistance of the SWIFT system, Bank Maskan
issues import letters of credit for importers within
maximum one day. Depending on the track record of
the client and the volume of his activities, the advance
payment requested by Bank Maskan for the letter
of credit is between 0 and 100 percent of its value.
Importers, including producers and traders, have also
access to L/C refinancing lines concluded between
Bank Maskan and foreign banks.
Export Letters of Credit
Foreign currency branches of Bank Maskan provide a
complete range of services related to export letters of
credit (advising, payment, etc.). Under the relevant local
regulation these branches also provide Rial facilities to
exporters who need to fulfil their obligations against L/Cs
(for more information see “Facilities to Exporters”).
Facilities to Importers
Bank Maskan issues sight and deferred (up to 12
months) letters of credit with the lowest possible
advance payment. Moreover, as an alternative to the
opening of deferred letters of credit, qualified importers
enjoy access to refinancing in the context of refinance
framework contracts Bank Maskan has signed with
foreign banks.
30
Annual Report
2010-11
Facilities to Exporters
Bank Maskan allocates facilities to exporters in order to
encourage non – oil export in the following ways:
• Pre – export facilities to finance engineering,
procurement or production related to the export of
goods and technical services;
• Post – export facilities, to provide bridge financing
for deferred payment by the foreign party for
purchased goods and technical services.
In case of issuance of an irrevocable letter of credit, Bank
Maskan provides facilities (in the equivalent amount in
Rial) of up to 90% of the value of the exported product
or service. In all other cases, the Bank finances up to
70% of the export value.
Foreign Currency Accounts
Bank Maskan opens foreign currency accounts in the
name of legal or natural persons based on the following
terms:
1. Denominated in EUR, USD, GBP, JPY, CHF, AED,
SAR, CAD and BHD
2. Applicants need to satisfy the general conditions
for opening Rial accounts
The following are major types of Forex accounts offered
by the Bank:
Letters of Guarantee
Bank Maskan issues the following types of forex
denominated guarantees:
• “Qarz – al – Hassaneh foreign currency savings
account”, with a minimum balance of US$ 100 or
equivalent;
• “Qarz – al – Hassaneh foreign currency current
account”, with a minimum balance of US$ 1,000
or equivalent;
• “Foreign currency term deposit account”, with a
minimum balance of US$ 1,000 or equivalent.
•
•
•
•
Bank Maskan is also linked to the Reuters Dealing
System and therefore able to adjust its competitive
forex deposit and lending rates to latest market
developments.
Tender Guarantee and Bid Bond;
Good Performance Bond;
Advance Payment Guarantee;
Retention Money Guarantee.
31
Annual Report
2010-11
Foreign Currency Payment Order
With assistance of the SWIFT system and its network
of correspondent banks, Bank Maskan effects in a
timely and secure manner worldwide foreign currency
payment orders. The service includes:
Foreign Currency Exchange Services
Bank Maskan purchases and sells at the floating rate,
announced by the Central Bank of Iran the following
currencies: EUR, USD, GBP, JPY, CHF, SAR, CAD, BHD
and AED.
• Issuance of foreign currency P/Os originating from
foreign currency accounts, up to account balance;
• Remittance of foreign currency P/Os amounts to
individual’s foreign currency account;
• Disbursement of banknotes to beneficiary of
inward foreign currency P/Os;
• Cash payments to travellers and tourists ;
• Purchase of foreign currency P/Os and conversion
into Rial;
• Conversion of the currency of P/Os into other
acceptable currencies, at the request of the client;
• Collection of foreign currency cheques on behalf of
foreign banks.
The Bank, purchases without limit, foreign currencies
received via the international banking system, including
foreign currency P/Os, and other valid transfer tools as
well as the balance of foreign currency accounts.
The Bank sells foreign currencies to Iranians travelling
abroad and Iranian companies with regards to their
needs to effect payments abroad. Selling of foreign
currencies to other persons is effected according to
related regulations of the Central Bank of Iran.
Foreign Exchange Dealing
Bank Maskan utilizes its Reuters Dealing System to
trade with banks around the world in foreign exchange.
Correspondent Banking
Bank Maskan has entered into correspondent banking
agreements with first class banks in all parts of the
world, covering all foreign currencies serviced by the
Bank. Many of these agreements also include standby
inter – bank credit lines or refinancing framework
agreements to provide financial facilities at competitive
prices to Iranian importers and exporters.
At the request of its clients, the Correspondent Banking
Department also translates account statements into
English.
Free Trade Zone Activities
Iran’s Free Trade Zones are governed by its own set of
banking and foreign exchange regulations, which are
more liberal than in the Iranian mainland.
In 2002 Bank Maskan established specialized branches
in Kish and Qeshm Free Trade Zones to offer related
enhanced services to its customers. The Bank’s
branches in the Free Trade Zones:
• Buy and sell foreign currency without limitation at
the market rate;
• Issue domestic and international P/Os at client’s
request without limitation;
• Issue import letters of credit;
• Open various types of foreign currency accounts.
32
Annual Report
2010-11
Information Technology & E – Banking Services
Today’s emergence of new technology is a key element
in the approach of the banks toward organizing
their business. In this context, the banking industry
has experienced a high rate of growth in electronic
banking in recent years. Bank Maskan, therefore, has
employed state – of – the – art technology at the heart
of its operations to improve customer satisfaction
and profitability. In recent years, Telephone banking,
Short Messaging System (SMS) banking, Internet
banking and debit (cash) cards are available to the
Bank’s customers with the convenience of ATMs
being operational at most branches. These facilities
remarkably reduce the need of customers to visit the
branch, saving time for the customers and cost and
work load for Bank Maskan, ultimately resulting in
higher customer satisfaction.
In addition, the IT Department of the Bank has
managed various projects and initiatives including
implementation of a new comprehensive banking
software, expansion of internet banking and electronic
services (card services), and updating hardware and
network systems. Moreover, other software and
projects have been implemented in order to further
improve the Bank’s electronic infrastructure systems,
all old cards have been renewed and about 8,000,000
new cards have been issued.
Following its commitment to sustainable development,
the Bank has furthered planned for other development
programs, some of which have already started or
been launched. At the top of these plans is further
development of internet banking product and services.
Expansion of Network Operating Center (NOC) and
Security Operating Center, installation of housing and
real estate intelligent identity system, expansion of
SATNA and SHETAB services, strengthening relations
with Bahrain, Qatar and Kuwait banking networks,
launching e – learning and office automation plans are
other part of our plans, through which we foresee a
bright outlook in offering convenient and comfortable
services to all customers.
33
Annual Report
2010-11
Organization Chart
General Assembly of Banks
Legal Inspectors
Chairman of the Board &
Managing Director
Advisors & Special Inspectors
Support
Affairs
Management
International
Affairs
Management
Performance
Appraisal and
Planning Center
Security
Management
Board
Member
Board
Member
Board
Member
Logistics and
Services Dept.
Foreign
Exchange
Operations
Dept.
Performance
Appraisal Dept.
Personnel
Security Dept.
IT and
Communications
Management
Credit Affairs
and Investment
Management
Provinces
and Regions
Management
Research and
Planning Dept.
Security and
Safety Dept.
IT Dept.
IT Security
Deputy
Modern Banking
Services Dept.
Credit and
Investment
Dept.
Branch
Management
Dept.
Risk
Management
Dept.
Human
Resource
Management
Internal Auditing
Dept.
Personnel
Affairs Dept.
Financial Affairs
Management
Personnel
Welfare Dept.
Treasury and
Transactions
Dept.
Training Dept.
Construction
Dept.
Foreign Affairs
Dept.
Management
Affairs Dept.
Projects and
Planning
Management
Planning Dept.
Inspection
Dept.
Public
Relations Dept.
Legal Affairs &
Debt Collection
Dept.
Information &
Statistics Dept.
General
Accounting Dept.
34
Annual Report
2010-11
Human Resources
and Training
Bank Maskan recognizes that its success is entirely
relied upon the devotion, resourcefulness, enthusiasm,
and professionalism of our people; therefore the
Bank gives great importance to securing high calibre
personnel among university and industry elites, and
appropriate many resources toward finding right
people.
On March 20, 2011, Bank Maskan employed a total of
10,860 staff, of which 2,814 were headquarter – based.
The remaining 8,046 employees were working in 1,214
branch offices across the country. The following chart
shows the educational background of Bank Maskan’s
employees.
1.4% 3.5%
Believing that training is a long – term investment
toward achieving the Bank’s goals, the Bank has a
strategic viewpoint in training its personnel. This also
implies that all training activities require being in line
with the Bank’s major goals and policies. Hence the
Training Department considers the following goals for
training of staff:
• Improvement in productivity of the staff and their
readiness for promotion;
• Development of personnel’s professional skills and
general know – how;
• Improvement of decision making ability especially
on the managerial level;
• Integrating staff spirit with organizational goals and
objectives;
• Achieving Bank’s main objectives;
• Increasing job satisfaction as well as motivation of
the employees.
IT and e – banking, international banking, marketing
and customer relations, commercial contracts, and
foreign languages were among the main areas of
concentration in 2010 training strategy of the Bank.
36.6%
51.1%
7.3%
High school Diploma
Associate of Science
B.Sc.
Below Diploma
Ph.D & M.Sc.
Bank Maskan held 1,857 training courses for 39,300
trainees, classified under General Courses, Technical
Courses, Professional Courses and Managerial
Courses. In 2008 training hours offered per capita
increased by nearly 28%.
35
Annual Report
2010-11
2009
2010
Number of
Staff
11,017
10,860
Courses
Trainees
1,935
1,626
48,555
47,977
2010 Training Courses
7.9%
5.2%
10.1%
42.3%
34.2%
General Courses
Applied Courses
Proffessional Courses
Managerial Courses
Conferences
Person/Hours
Of Training
905,334
929,676
Training Hours
per Capita
82.2
85.6
36
Annual Report
2010-11
Research &
Development Center
The R&D center was established in 2004. It aims at
conducting research and surveys to find solutions for
existing problems and to exploit potential opportunities.
The main objectives of the Center can be listed as
promoting employees’ knowledge, customizing modern
banking technology for the Bank, research and study
on generating new know – how and finally utilizing the
proposals and ideas of analysts and experts.
R&D Center consists of 5 main committees and groups
in which it conducts various studies and projects to
improve the Bank’s performance in all operational and
financial aspects. All committees are committed to not
only design and conduct internal research projects,
but also to support preferable academic / industrial
research proposal as well as PhD and Master degree
dissertations, related to the Bank’s fields of interest or
requirement. More than 100 research and development
projects were ratified or in – progress during 2010.
R&D Center Organization Chart
Chairman of the Board &
Managing Director
Board Member
Proposals Council
Head of Research &
Development Center
Proposals Deputy
Proposals Arrangement
Group
Research Supreme
Council
Research Deputy
Archive &
Office Affairs
Resource Provision
& Allocation Group
Organization & HR
Committee
Economics,
Marketing & Modern
Services Group
Finance Committee
Organization & HR
Group
Finance Group
Supreme Research
Council’s Executive
Group
Economics,
Marketing & Modern
Services Committee
Resource Provision
& Allocation
Committee
Construction &
Housing Committee
37
Annual Report
2010-11
Major Subsidiaries
Bank Maskan Investment Management Company
(Public Joint Stock)
Bank Maskan Investment Management Company
(BMIMC) was established in 1975 in Tehran. This
company is a wholly owned subsidiary of Bank
Maskan. On March 20, 2011 its registered capital
amounted to Rial 1 billion (US$ 97,000). BMIMC offers
full brokerage, asset management and investment
banking advisory services. As a high profile brokerage
company, BMIMC has been on a solid operational
and financial track in recent year. All key performance
indicators of the company such as total assets (Rial
5,724 million – US$ 556.3 million), operating revenues
(Rial 1,015 million – US$ 98,000), as well as net profit
(Rial 1,000 million – US$ 96,500) have been ascending
in the meanwhile.
Bank Maskan Human Resource Supply & Support
Services Company (Private Joint Stock)
Bank Maskan Support Services Company (BMSSC)
was established in 2003 in Tehran. This Company is a
wholly owned subsidiary of Bank Maskan. On March
20, 2010 its registered capital amounted to Rial 100
million (US$ 9,700). BMSSC offers recreational, sport,
healthcare and welfare services and facilities to all
members of Bank Maskan and its affiliates. Total assets
and net profit of the company are amounted to Rial
55.1 billion (US $ 5.3 million) and Rial 4,712 million (US$
386,000) respectively, by end of 2010 financial year.
Navaco Company (Private Joint Stock)
Navaco Company was established in 1976 in Tehran,
as a wholly owned subsidiary of Bank Maskan. On
March 20, 2011 its registered capital amounted to Rial
121.1 billion (US$ 11.8 million). Navaco is Information
Technology arm of Bank Maskan, active in conducting
researches, designing, and giving strategic plans in
38
Annual Report
2010-11
the field of IT, as well as producing network security
systems and support softwares. Total assets and
revenues of Navaco were raised to Rial 241,500 million
(US$ 23.5 million) and Rial 63,800 million (US$ 6.1
million) in 2010.
Tehran – Pardis Freeway Company (Private Joint
Stock)
Tehran – Pardis Freeway Company was established in
2000 in Tehran as a Public Joint Stock Company. The
Company’s registered capital currently stands at Rial
1,200 million (US$ 166,600).
This company is in charge of construction, maintenance
and operation of Tehran Pardis freeway. After registration,
an agreement was signed between the Ministry of
Roads and Transportation, as the client, and Tehran –
Pardis Freeway Company, as the contractor, in May 2,
2001. According to the agreement, the project funding
comes 80% from the Company and 20% from the
Ministry.
Pasokhgou Exchange Company
The Company also operates some collateral projects
in order to cover expenses of the original project. Bank
Maskan holds a 40% stake in the Company. According
to latest estimates, the overall progress of the project
by end of 2010 is 97%.
Pasokhgou Exchange Company was established in
2009 in Tehran as a wholly owned subsidiary of Bank
Maskan. On March 20, 2011 registered capital of
the Company amounted to Rial 20,000 million (US$
1.9 million). According to its Article of Association,
Pasokhgou is the official exchange company of
Bank Maskan. Its main fields of activity include cash
and on remittance transactions over various foreign
currencies, gold, and silver; all complying with the
rules and regulations of the Central Bank of Iran. The
company has tripled its net profit to Rial 1,290 million
(US$ 124,500) from the date of incorporation.
Firoozabad Automated Brick Industries (Private
Joint Stock)
Lavizan Development Company (Private Joint
Stock)
Firoozabad Automated Brick Industries (FABI) was
established in 1983 in Tehran. This Company is also a
wholly owned subsidiary of Bank Maskan. On March
20, 2011 its registered capital amounted to Rial 5,000
million (US$ 486,000). FABI operates automated
production lines for bricks and other construction
materials. The operating profit figure of FABI stood at
Rial 2,251 million (US$ 217,000) by the 2010 year end.
Lavizan Development Company was established in
1975 in Tehran. On March 20, 2011 the registered
capital of Lavizan Development Company amounted
to Rial 3,600 million (US$ 350,000). Bank Maskan held
a 15.69% stake in the Company. Lavizan Development
Company engages in construction and real estate
development activities.
2010-11 Annual Report
Bank Maskan Annual Report 2010-11
41
Excerpt from the
Auditor’s Report
1. The consolidated and non – consolidated balance
sheets of Bank Maskan as of March 20, 2011
and the consolidated and non – consolidated income
and cash flow statements of the Bank for the
year ended at the same date, together with
accompanying descriptive notes, have been
audited by this organization. The board of directors
of Bank Maskan is responsible for the content of
the financial statements and it is the responsibility
of this organization to comment on the financial
statements based on the performed audit and to
report cases of non – compliance with monetary
and banking rules as well as regulations on usury –
free banking stipulated in the Commercial Code as
amended and the Bank’s articles of association.
2. The audit by this organization has been
accomplished based on auditing standards.
According to these standards, this organization
has programmed and performed an optimized
audit to reasonably ensure the non – existence
of significant mistakes and distortions. The
audit included random checks of evidence and
documents supporting the figures in the financial
statements. The audit also included inspection of
applied accounting policies, assessments made by
the board of directors and inspection of the overall
accounts presented. This organization believes the
performed audit produced a reasonable base of
opinion on the financial statements.
3. In the opinion of this organization the above
mentioned financial statements show that the
consolidated and non – consolidated financial
status of Bank Maskan as of March 20, 2011 and
the consolidated and non – consolidated operations
and cash flows for the fiscal year ended on the
same date, are in all important aspects consistent
with the accounting standards.
4. The Board of Directors’ report to the Annual General
Assembly was examined by this organization. In the
course of the performed audit, this organization has
not noticed any important discrepancy between
the content of the report and the documents and
evidence presented by the Board of Directors.
June 22, 2011
State Audit Organization
Forough Rashtchian
Seyed Mohammad Miraftabzadeh
42
Bank Maskan Annual Report 2010-11
Bank Maskan Consolidated Balance Sheet
Million
March 19, 2011
IRR
March 20, 2010
USD
IRR
USD
Assets
Cash
2,886,974
280.56
1,867,964
189.43
11,375,537
1,105.49
10,374,770
1,052.10
Due from Banks and Credit Institutions
16,357,096
1,589.61
6,817,271
691.34
Loans Granted and Due from the Public Sector
14,819,191
1,440.15
3,281,571
332.78
362,780,089
35,255.60
199,515,006
20,232.74
8,281,574
804.82
1,912,294
193.92
Due from the Central Bank
Loans Granted and Due from the Private Sector
Term Letters of Credit of Debtors
Participation Bonds
Investments and Partnerships
579,212
56.29
1,972,693
200.05
4,515,951
438.87
3,841,847
389.60
Current Contracts
3,081,031
299.42
2,888,838
292.96
Fixed Assets
9,670,949
939.84
8,800,553
892.46
Other Assets
6,010,129
584.07
2,609,493
264.63
Total Assets
440,357,733
42,794.73
243,882,300
24,732.00
Letters of Credit Commitments
5,847,098
568.23
960,672
97.42
Bank Guarantees Commitments
2,878,933
279.78
1,107,223
112.28
434,207
42.20
1,476,942
149.78
Managed Funds
Other Commitments
Total
1,598,434
155.34
41,825
4.24
10,758,672
1,045.55
3,586,662
363.72
152,028,891
14,774.43
49,519,525
5,021.75
18,360,232
1,784.28
11,217,718
1,137.58
Liabilities
Due to the Central Bank
Due to Banks and Credit Institutions
Due to Foreign Banks for Letters of Credit
Demand Deposits
Savings Accounts
3,028,031
294.27
1,085,077
110.04
22,873,414
2,222.88
14,452,630
1,465.64
48,494,185
4,712.75
44,733,132
4,536.37
108,047,362
10,500.23
91,966,535
9,326.29
Other Deposits
1,754,899
170.54
485,007
49.18
Other Liabilities & Provisions
17,044,022
1,656.37
10,996,263
1,115.13
Three Years Participation Bonds of Bank Maskan
47,857,751
4,650.90
4,075,977
413.34
Reserve for work termination benefits
872,287
84.77
685,101
69.48
Items in Transit
691,409
67.19
2,251,934
228.37
421,052,483
40,918.61
231,468,899
23,473.17
Share Capital
14,074,157
1,367.75
7,066,657
716.63
Legal Reserve
2,839,779
275.97
2,653,227
269.06
Term Deposits
Total Liabilities
Capital Reserve and Funds Transferable to Capital
50,023
4.86
37,909
3.84
Exchange Rate Fluctuations Result
51,886
5.04
51,886
5.26
Profit(loss) from Interchange of Forex Assets and Liabilities
Accumulated Profit (Loss)
Total Bank Shareholders’ Equity
Minority Interest
Total Shareholders’ Equity
Total Liabilities & Shareholders’ Equity
330,092
32.08
250,665
25.42
1,070,744
104.06
1,492,065
151.31
18,416,681
1,789.76
11,552,409
1,171.53
888,569
86.35
860,992
87.31
19,305,250
1,876.12
12,413,401
1,258.84
440,357,733
42,794.73
243,882,300
24,732.00
Letters of Credit Commitments
5,847,098
568.23
960,672
97.42
Bank Guarantees Commitments
2,878,933
279.78
1,107,223
112.28
434,207
42.20
1,476,942
149.78
Managed Funds
Other Commitments
Total
1,598,434
155.34
41,825
4.24
10,758,672
1,045.55
3,586,662
363.72
Bank Maskan Annual Report 2010-11
43
Bank Maskan
Consolidated Income Statement
Million
March 19, 2011
IRR
March 20, 2010
USD
IRR
USD
Revenues from Joint Investments
Profit and Interest on Islamic Contracts
Net Income from Services
Other Revenues
30,473,663
2,940.34
19,336,521
1,966.29
2,822,292
272.32
1,755,952
178.56
693,114
66.88
723,792
73.60
Total Revenues from Joint Investments
33,989,069
3,279.53
21,816,265
2,218.45
Depositors’ Profit
(17,061,409)
(1,646.22)
(12,225,674)
(1,243.20)
(2,067,757)
(199.51)
(1,186,867)
(120.69)
(19,129,166)
(1,845.73)
(13,412,541)
(1,363.89)
14,859,903
1,433.80
8,403,724
854.56
Cost Price on Good Sold
Net Profit Paid to Depositors
Bank’s Profit
Revenues from Own Investments
Profit and Interest Receivable
Fees & Commissions
Other Revenues
Total Revenues from Own Investments
Total Revenues
31,547
3.04
310,643
31.59
829,386
80.03
469,072
47.70
991,771
95.69
473,260
48.12
1,852,731
178.77
1,252,975
127.41
16,712,634
1,612.57
9,656,699
981.97
(7,345,671)
(708.77)
(3,937,811)
(400.43)
(336,608)
(32.48)
(205,892)
(20.94)
Expenses
Interest Paid
Fees & Commissions Paid
(7,712,978)
(744.21)
(4,576,889)
(465.41)
Other Expenses
General Expenses
714,823
68.97
520,511
52.93
Total Expenses
(14,680,434)
(1,416.48)
(8,200,081)
(833.85)
Profit Before Tax
2,032,200
196.08
1,456,618
148.12
Tax
(206,659)
(19.94)
(196,551)
(19.99)
Net Profit
1,601,435
154.52
1,094,079
111.25
224,106
21.62
165,988
16.88
Minority Interest
44
Bank Maskan Annual Report 2010-11
Bank Maskan
Consolidated Statement of Earnings
Million
March 19, 2011
IRR
March 20, 2010
USD
IRR
USD
Net Profit
1,601,435
154.52
1,094,079
111.25
Accumulated Profit at the Beginning of the Year
1,973,662
190.43
741,874
75.44
Prior Year Adjustments
(482,596)
(46.56)
65,500
6.66
Accumulated Profit at the Beginning of the Year – Adjusted
1,492,066
143.97
807,374
82.10
Allocable Profit
3,093,501
298.49
1,901,453
193.35
Legal Reserve
(201,289)
(19.42)
(114,256)
(11.62)
Recapitalization of the Bank
(709,800)
(68.49)
-
-
(12,512)
(1.21)
(10,323)
(1.05)
Profit Allocation
Funds Transferable to Capital
Sub Total
(923,601)
(89.12)
(124,579)
(12.67)
Dividend Payable to the Government
(432,793)
(41.76)
(284,809)
(28.96)
Ratified Dividend
(664,040)
(64.07)
-
-
Bonus for the Board of Directors
Sub Total
Accumulated Profit (Loss) at the End of the Year
Minority Interest
(2,323)
(0.22)
-
-
(1,099,156)
(106.06)
(284,809)
(28.96)
1,070,774
103.32
1,492,065
151.73
376,388
36.32
178,955
18.20
Consolidated Comprehensive
Statement of Earnings
Million
Net Profit
Exchange Rate Fluctuations Profit/(Loss)
Comprehensive Profit
Prior Year Adjustments
Recognized Comprehensive Profit from Previous Year
Minority Interest
March 19, 2011
IRR
USD
March 20, 2010
IRR
USD
1,601,435
154.52
1,094,079
111.25
79,427
7.66
250,665
25.49
1,680,862
162.18
1,344,744
136.74
(481,596)
(46.47)
65,500
6.66
(1,199,266)
(115.71)
1,410,244
143.40
215,163
20.76
147,114
14.96
Bank Maskan Annual Report 2010-11
45
Bank Maskan
Consolidated Cash Flow Statement
Million
March 19, 2011
IRR
March 20, 2010
USD
IRR
USD
Operating Activities
Net Cash Flow From Operating Activities
(93,263,413)
(8,998.79)
10,829,175
1,098.18
(284,809)
(27.48)
(2,313,066)
(234.57)
Return on Investments and Interest Paid for Financing
Dividend Payable to the Government
323,745
31.24
240,468
24.39
Interest Paid to Financial Facilities
Dividends Received
(2,018,444)
(194.76)
(1,618,351)
(164.12)
Net Cash Flow from Return on Investments and Profit Paid
(1,979,508)
(191.00)
(3,690,949)
(374.30)
(475,653)
(45.89)
(647,367)
(65.65)
(736,190)
(71.03)
(124,115)
(12.59)
Income Tax
Income Tax Paid
Investment Activities
Cash Paid from Direct Investments and Legal Participations
Cash Received from Sale of Investments
Cash Paid for Purchasing, Construction, and Completion of
Fixed Asset
Cash Received from Sale of Fixed Assets
207,423
20.01
173
0.02
(1,487,943)
(143.57)
(2,093,651)
(212.32)
142,273
13.73
33,144
3.36
Net Cash Flow from Investment Activities
(1,874,437)
(180.86)
(2,184,449)
(221.52)
Net Cash flow before Financing Activities
(97,593,011)
(9,416.54)
4,306,410
436.71
Facilities Received from the Central Bank
50,498,646
4,872.51
16,500,000
1,673.26
Line of Credit Received from the Central Bank
50,469,730
4,869.72
(11,960,869)
(1,212.95)
17,860,512
1,723.32
2,244,000
227.56
(21,531,045)
(2,077.48)
(6,581,808)
(667.46)
97,477,843
9,405.43
201,323
20.42
(115,168)
(11.11)
4,507,733
457.13
5,377
0.52
(5,163,134)
(523.59)
(109,791)
(10.59)
(655,401)
(66.46)
Financing Activities
Facilities Received from Other Banks
Reimbursement of Facilities from Other Banks
Net Cash Flow from Financing Activities
Net Cash Flow
Exchange Rate Fluctuations Profit/(Loss)
Net Cash Increase/ Decrease during the year
Cash Balance at the Beginning of the Year
4,729,597
456.35
5,384,998
546.09
Cash Balance at the End of the Year
4,619,806
445.76
4,729,597
479.63
Non – Cash Transactions
7,404,000
714.40
574,634
58.27
46
Bank Maskan Annual Report 2010-11
Bank Maskan
Balance Sheet
Million
March 19, 2011
IRR
March 20, 2010
USD
IRR
USD
Assets
2,839,757
275.97
1,850,196
188.14
Due from the Central Bank
Cash
11,375,537
1,105.49
10,374,770
1,054.99
Due from Banks and Credit Institutions
16,357,096
1,589.61
6,817,271
693.23
Loans Granted and Due from the Public Sector
14,819,191
1,440.15
3,281,571
333.70
364,996,780
35,471.02
200,901,122
20,429.24
8,281,574
804.82
1,912,294
194.46
579,212
56.29
1,972,693
200.60
Investments and Partnerships
1,448,043
140.72
1,192,341
121.25
Fixed Assets
8,457,280
821.89
7,487,353
761.37
Loans Granted and Due from the Private Sector
Term Letters of Credit of Debtors
Participation Bonds
Other Assets
8,813,883
856.55
5,464,543
555.68
Total Assets
437,968,353
42,562.52
241,254,154
24,532.66
Letters of Credit Commitments
4,847,098
471.05
960,672
97.69
Bank Guarantees Commitments
2,878,933
279.78
1,107,223
112.59
Managed Funds
Other Commitments
Total
434,207
42.20
1,476,942
150.19
1,598,434
155.34
41,825
4.25
10,758,672
1,045.55
3,586,662
364.72
152,028,891
14,774.43
49,519,525
5,035.54
18,063,300
1,755.42
10,923,321
1,110.77
Liabilities
Due to the Central Bank
Due to Banks and Credit Institutions
Due to Foreign Banks for Letter Credits
Demand Deposits
Savings Accounts
Term Deposits
3,028,031
294.27
1,085,077
110.34
21,688,291
2,107.71
12,993,962
1,321.33
48,500,957
4,713.41
44,733,132
4,548.82
108,158,173
10,511.00
92,078,845
9,363.32
Other Deposits
1,754,899
170.54
485,007
49.32
Other Liabilities & Provisions
17,050,023
1,656.95
10,988,898
1,117.44
Three Years Participation Bonds of Bank Maskan
47,873,751
4,652.45
4,079,977
414.88
833,547
81.01
654,311
66.54
Reserve for work termination benefits
Items in Transit
Total Liabilities
691,409
67.19
2,251,934
228.99
419,671,272
40,784.38
229,793,989
23,367.30
0.00
Share Capital
14,074,157
1,367.75
7,066,657
718.59
Legal Reserve
2,722,643
264.59
2,560,345
260.36
Capital Reserve and Funds Transferable to Capital
50,000
4.86
37,488
3.81
Exchange Rate Fluctuations Result
51,886
5.04
51,886
5.28
Profit(loss) from Interchange of Forex Assets and Liabilities
Accumulated Profit (Loss)
Total Shareholders’ Equity
Total Liabilities & Shareholders’ Equity
330,092
32.08
250,665
25.49
1,068,303
103.82
1,493,124
151.83
18,297,081
1,778.14
11,460,165
1,165.36
437,968,353
42,562.52
241,254,154
24,532.66
Letters of Credit Commitments
4,847,098
471.05
960,672
97.69
Bank Guarantees Commitments
2,878,933
279.78
1,107,223
112.59
Managed Funds
Other Commitments
Total
434,207
42.20
1,476,942
150.19
1,598,434
155.34
41,825
4.25
10,758,672
1,045.55
3,586,662
364.72
Bank Maskan Annual Report 2010-11
47
Bank Maskan
Income Statement
Million
March 19, 2011
IRR
March 20, 2010
USD
IRR
USD
Revenues from Joint Investments
Profit and Interest on Islamic Contracts
Other Revenues
30,675,347
2,959.80
19,504,076
1,977.90
960,961
92.72
755,826
76.65
Total Revenues from Joint Investments
31,636,308
3,052.52
20,259,902
2,054.55
Depositors’ Profit
(17,094,339)
(1,649.40)
(12,230,723)
(1,240.31)
(17,094,339)
(1,649.40)
(12,230,723)
(1,240.31)
14,541,969
1,403.12
8,029,179
814.24
Net Profit Paid to Depositors
Bank’s Profit
Revenues from Own Investments
31,574
3.05
360,643
36.57
Fees & Commissions
Profit and Interest Receivable
829,386
80.03
469,072
47.57
Other Revenues
846,071
81.64
439,316
44.55
Total Revenues from Own Investments
Total Revenues
1,707,031
164.71
1,219,031
123.62
16,249,000
1,567.83
9,248,210
937.86
(7,265,334)
(701.02)
(3,871,931)
(392.65)
(336,608)
(32.48)
(205,892)
(20.88)
Expenses
Interest Paid (depositors excluded)
Fees & Commissions Paid
Total Cost
Total Expenses
Profit Before Tax
Tax
Net Profit
(7,565,075)
(729.94)
(4,458,366)
(452.12)
(15,167,017)
(1,463.43)
(8,536,189)
(865.65)
1,081,983
104.40
712,021
72.21
(189,401)
(18.27)
(187,564)
(19.02)
892,581
86.12
524,457
53.18
48
Bank Maskan Annual Report 2010-11
Bank Maskan
Statement of Earnings
Million
Net Profit
Accumulated Profit at the Beginning of the Year
March 19, 2011
IRR
March 20, 2010
USD
IRR
USD
892,582
86.12
524,457
53.18
1,951,465
188.29
1,255,836
127.35
Prior Year Adjustments
(458,341)
(44.22)
114,766
11.64
Accumulated Profit at the Beginning of the Year – Adjusted
1,493,124
144.07
1,370,602
138.99
Allocable Profit
2,358,706
227.59
1,895,059
192.18
Legal Reserve
(162,297)
(15.66)
(168,803)
(17.12)
Recapitalization of the Bank
(709,800)
(68.49)
-
-
Profit Allocation
Funds Transferable to Capital
Sub Total
(12,513)
(1.21)
(10,324)
(1.05)
(884,610)
(85.35)
(117,127)
(11.88)
Dividend Payable to the Government
(432,793)
(41.76)
(284,808)
(28.88)
Accumulated Profit (Loss) at the End of the Year
1,068,303
103.08
1,493,124
151.42
Consolidated Comprehensive
Comprehensive Statement of Earnings
Million
Net Profit
March 19, 2011
IRR
March 20, 2010
USD
IRR
USD
892,582
86.12
524,457
53.18
79,427
7.66
250,665
25.42
Comprehensive Profit
972,009
93.79
775,122
78.60
Prior Year Adjustments
(458,341)
(44.22)
114,766
11.64
513,668
49.56
889,888
90.24
Exchange Rate Fluctuations Profit/(Loss)
Recognized Comprehensive Profit from Previous Year
Bank Maskan Annual Report 2010-11
49
Bank Maskan
Cash Flow Statement
Million
March 19, 2011
IRR
March 20, 2010
USD
IRR
USD
(93,835,314)
(9,053.97)
9,704,780
984.16
(284,809)
(27.48)
(2,313,066)
(234.57)
166,640
16.08
44,934
4.56
Operating Activities
Net Cash Flow From Operating Activities
Return on Investments and Interest Paid for Financing
Dividend Payable to the Government
Dividends Received
Interest Paid to Financial Facilities
(1,982,427)
(191.28)
(1,546,523)
(156.83)
Net Cash Flow from Return on Investments and Profit Paid
(2,100,596)
(202.68)
(3,814,655)
(386.84)
(453,004)
(43.71)
(611,360)
(62.00)
Income Tax
Income Tax Paid
Investment Activities
Cash Paid from Direct Investments and Legal Participations
Cash Paid for Purchasing, Construction, and Completion of
Fixed Asset
Cash Received from Sale of Fixed Assets
(129,100)
(12.46)
(22,822)
(2.31)
(1,207,985)
(116.56)
(902,695)
(91.54)
108,264
10.45
16,116
1.63
Net Cash Flow from Investment Activities
(1,228,821)
(118.57)
(909,401)
(92.22)
Net Cash flow before Financing Activities
(97,617,735)
(9,418.92)
(4,369,364)
(443.10)
Facilities Received from the Central Bank
50,498,646
4,872.51
16,500,000
1,673.26
Line of Credit Received from the Central Bank
50,649,730
4,887.08
(11,960,869)
(1,212.95)
Financing Activities
Facilities Received from Other Banks
Reimbursement of Facilities from Other Banks
Net Cash Flow from Financing Activities
Net Cash Flow
Exchange Rate Fluctuations Profit/(Loss)
Net Cash Increase/ Decrease
17,790,000
1,716.52
2,200,000
223.10
(21,465,258)
(2,071.14)
(6,611,475)
(670.47)
97,473,118
9,404.97
127,656
12.95
(144,617)
(13.95)
4,497,020
456.04
5,377
0.52
(5,163,134)
(523.59)
(139,240)
(13.43)
(666,114)
(67.55)
Cash Balance at the Beginning of the Year
4,711,829
454.63
5,377,942
545.37
Cash Balance at the End of the Year
4,572,589
441.20
4,711,828
477.82
Non – Cash Transactions
7,292,500
703.64
-
-
50
Bank Maskan Annual Report 2010-11
Foreign Exchange
Branches
International banking services relating to letters of credit,
guarantees, foreign exchange and worldwide money transfers are
carried out through the following branches:
Tehran
Tehran Central Branch
Next to Sarhang Sakhaei, Ferdowsi Ave,
Tehran, Iran
Tel:+98 21 66 70 14 34
Fax: +98 21 66 70 14 34
...................................................................................................
Afriqa Shomali Branch
Golshahr Blvd, Africa Ave,
Tehran, Iran
Tel: +98 21 22 02 68 50
Fax: +98 21 22 01 57 94
...................................................................................................
Ayatollah Kashani Branch
Next to Ferdows Blvd, Ayatollah Kashani Blvd, Tehran, Iran
Tel: +98 21 44 08 96 55
Fax: +98 21 44 08 96 55
...................................................................................................
Chahar rah Qanut Branch
Qanut Junction, Shahid Kolah Douz Ave,
Tehran, Iran
Tel: +98 21 22 56 60 80
Fax:+98 21 22 55 13 90
...................................................................................................
>>
Karimkhan Zand Branch
Karimkhan Zand Ave., Shahid Hosseini St., Tehran, Iran
Tel: +98 21 88 20 02 50
Fax: +98 21 88 20 02 89
...................................................................................................
Sa’adat Abad Branch
Eastern Sarv St, Kadj Sq, Sa’adat Abad, Tehran, Iran
Tel: +98 21 22 06 44 88
Fax: +98 21 22 06 44 88
...................................................................................................
Sepahbod Gharaney Branch
Sepahbod Gharaney Ave, Ferdowsi Sq,
Tehran, Iran
Tel: +98 21 88 34 93 99
Fax: +98 21 88 84 21 61
...................................................................................................
Shahid Khoddami Branch
Next to Homa Hotel, Opposite National Iranian Housing
Organization, Shahid Khoddami Ave., Vanak Sq., Tehran, Iran
Tel: +98 21 88 77 39 69
Fax: +98 21 88 79 87 55
...................................................................................................
Tajrish Branch
Close to Tajrish Sq, Vali Asr Ave,
Tehran, Iran
Tel: +98 21 22 71 00 91
Fax: +98 21 22 71 43 68
...................................................................................................
Tohid Branch
Northern Roudaki, Azadi Ave, Tehran, Iran
Tel: +98 21 66 93 25 00
Fax: +98 21 66 93 25 00
...................................................................................................
Ekhtiyarieh Shomali Branch
Next to Ghaffari Alley, Northern Ekhtiyarieh Ave, Tehran, Iran
Tel: +98 21 22 58 02 60
Fax: +98 21 22 58 03 01
...................................................................................................
Velenjak Branch
Tabnak St, Velenjak, Tehran, Iran
Tel: +98 21 22 41 26 25
Fax:+98 21 22 42 53 97
...................................................................................................
Niavaran Branch
Opposite Jamaran St, Shahid Bahonar Ave, Tehran, Iran
Tel: +98 21 22 81 86 27-9
Fax: +98 21 22 29 37 97
...................................................................................................
Yousef Abad Branch
Between Farhang and Kalantari, Asad Abadi Ave, Tehran, Iran
Tel: +98 21 88 06 12 07
Fax: +98 21 88 06 12 07
...................................................................................................
Mirdamad Branch
Next to Southern Razan, Mirdamad Blvd,
Tehran, Iran
Tel: +98 21 22 91 40 03
Fax: +98 21 22 91 40 04
...................................................................................................
Ostad Motahari Gharbi Branch
Opposite Tehran Grand Hotel, Motahari Ave,
Tehran, Iran
Tel: +98 21 88 91 62 82
Fax: +98 21 88 91 62 81
...................................................................................................
Taleqani Branch
Taleqani St., Before Mofatteh St.,
Tehran, Iran
Tel: +98 21 88 38 17 32
Fax: +98 21 88 38 17 32
...................................................................................................
Vali Asr Square Branch
Opposite Damavand Hotel, Vali Asr Ave,
Tehran, Iran
Tel: +98 21 88 91 35 32-3
Fax: +98 21 88 89 72 27
...................................................................................................
Bank Maskan Annual Report 2010-11
Tehran
Shohada Branch
Next to Trafic Police Station, Hefdahe Shahrivar St., Tehran, Iran
Tel: +98 21 88 91 35 32-3
Fax: +98 21 88 89 72 27
...................................................................................................
Shahrara Branch
Shahrara Sq., Tehran, Iran
Tel: +98 21 88 27 44 38
Fax: +98 21 88 27 44 39
...................................................................................................
Vanak Sq. Branch
Opposite Shahid Khodami St., Next to Sharifi St., Vanak Sq.,
Tehran, Iran
Tel: +98 21 88 87 87 03
Fax: +98 21 88 67 85 08
...................................................................................................
Golestan – e – Pasdaran Branch
No.1307, Between 3rd and 4th Golestan, Pasdaran St.,
Tehran, Iran
Tel: +98 21 22 76 08 52
Fax: +98 21 22 57 09 09
...................................................................................................
Shahid beheshti Branch
No.240, Next to Takhti Junction, Shahid Beheshti St., Tehran, Iran
Tel: +98 21 88 73 96 23
Fax: +98 21 88 74 22 26
...................................................................................................
Narmak Branch
Shahid Ayat Ave, Below Nabovat Sq., Tehran, Iran
Tel: +98 21 77 90 82 64
Fax: +98 21 77 95 64 31
...................................................................................................
51
>|
Seyed Khandan Branch
No 108, Simorgh St., Next to Seyed Khandan Bridge, Tehran,
Iran
Tel: +98 21 22 89 05 13
Fax: +98 21 22 89 05 11
...................................................................................................
Kouy – e – Nasr Branch
12th St., Kouy – e – Nasr, Tehran, Iran
Tel: +98 21 88 28 98 80
Fax: +98 21 88 28 98 80
...................................................................................................
Vali Asr – Tavanir Branch
Opposite Dey Hospital, Vali Asr Ave., Tehran, Iran
Tel: +98 21 88 64 47 03
Fax: +98 21 88 64 47 03
...................................................................................................
Shiraz – e – Shomali Branch
Shiraz – e – Shomali St., Tehran, Iran
Tel: +98 21 88 61 86 47
Fax: +98 21 88 61 86 47
...................................................................................................
Proffesor Hesabi Branch
Before Dowlat St., Dr. Shariati Ave., Tehran, Iran
Tel: +98 21 22 60 10 23
Fax: +98 21 22 60 10 23
...................................................................................................
Enqelab Branch
Enqelab Sq., Azadi St., Tehran, Iran
Tel: +98 21 66 90 00 53
Fax: +98 21 66 90 00 53
...................................................................................................
52
Other Cities
Bandar Abbas Central Branch
Imam Khomeini Blvd, Bandar Abbas, Iran
Tel: +98 761 224 30 02-3
Fax: +98 761 224 22 51
...................................................................................................
Isfahan Sa’adat Abad Branch
Sa’adat Abad Ave, Darvazeh Shiraz,
Isfahan, Iran
Tel: +98 311 668 38 72
Fax: +98 311 668 38 72
...................................................................................................
Isfahan Ferdowsi Branch
Fersowsi St., Isfahan, Iran
Tel: +98 311 220 66 99
Fax: +98 311 222 00 75
...................................................................................................
Rasht Central Barnch
Qods Junction,Rasht,Iran
Tel: +98 131 32 11 647
Fax: +98 131 32 11 647
...................................................................................................
Isfahan Central Branch
Kamal Ismaeil Ave, Isfahan, Iran
Tel: +98 311 221 69 50
Fax: +98 311 222 98 60
...................................................................................................
Kish Venus Branch
Venus Shopping Center, Stall No.119, Kish, Iran
Tel: +98 764 442 25 20-2
Fax: +98 764 442 25 23-4
...................................................................................................
Karaj Central Branch
Next to Shahrdari, Dr. Beheshti Ave,
Karaj, Iran
Tel: +98 261 222 00 40
Fax: +98 261 222 37 72
...................................................................................................
Kermanshah Central Branch
Ayatollah Ashrafi Isfahani Ave, Kermanshah, Iran
Tel: +98 831 725 42 00
Fax: +98 831 724 92 52
...................................................................................................
Ardebil Central Branch
30 metry St., (Taleqani St)
Opposite to city council, Ardebil, Iran
Tel: +98 451 336 53 12
Fax: +98 451 336 53 74
...................................................................................................
Mashad Sajjad Blvd Branch
Next to Northern Bozorgmehr St.,
Sajjad Blvd., Mashad, Iran
Tel: +98 511 768 17 80
Fax: +98 511 768 17 80
...................................................................................................
Mashad Central Branch
Dr. Chamran St, Mashad, Iran
Tel: +98 511 222 67 37
Fax: +98 511 222 67 50
...................................................................................................
Bank Maskan Annual Report 2010-11
>>
Orumyeh Central Branch
Daneshkadeh Junction, Kashani Ave,
Orumyeh, Iran
Tel: +98 441 344 59 99
Fax: +98 441 346 37 77
...................................................................................................
Qazvin Central Branch
Taleghani St., Opposite to Alborz
Hotel, Qazvin Iran
Tel: +98 281 22 26 737
Fax: +98 281 22 26 737
...................................................................................................
Shiraz Central Branch
Karim Khan Zand Ave, Shiraz, Iran
Tel: +98 711 235 31 95
Fax: +98 711 23 597 05
...................................................................................................
Tabriz Valiasr Branch
Falake Bozorg, Kouye Vali Asr, Tabriz, Iran
Tel: +98 411 330 66 44
Fax: +98 411 332 71 34
...................................................................................................
Tabriz Central Branch
Khaqani St, Imam Khomeini Ave, Tabriz, Iran
Tel: +98 411 554 51 65
Fax: +98 411 554 51 67
...................................................................................................
Zanjan Central Branch
Sa’adi Junction, Be’sat Sq.,
Zanjan, Iran
Tel: +98 241 31 23 344
Fax: +98 241 31 23 345
...................................................................................................
Sari Central Branch
Farhang Ave., Sari, Iran
Tel: +98 151 222 09 13
Fax: +98 151 222 21 17
...................................................................................................
Kerman Central Branch
Moallem Crossroad, Oods St., Kerman, Iran
Tel: +98 341 226 91 20
Fax: +98 341 226 91 20
...................................................................................................
Kashan Central Branch
Mir Emad St., Shahid Rajaee St., Panzdahe Khodrad Sq.,
Kashan, Iran
Tel: +98 361 446 33 35
Fax: +98 361 444 11 15
...................................................................................................
Amol Central Branch
Next to Taghi Khan Mosque, Between 3rd and 4th Passage,
Mohseni St., Amol, Iran
Tel: +98 831 321 16 47
Fax: +98 831 321 16 47
...................................................................................................
Tabriz Shahid Madani Branch
Opposite Saraye Almahdi, Shahid Madani Ave, Tabriz, Iran
Tel: +98 411 526 10 50
Fax: +98 411 526 24 03
...................................................................................................
Bank Maskan Annual Report 2010-11
Other Cities
Hamedan Central Branch
Next to Bu Ali Shrine, Bu Ali St., Hamedan, Iran
Tel: +98 811 83 50 00 15
Fax: +98 811 83 50 00 15
...................................................................................................
Ahvaz Salmane Farsi Branch
Between Farsi and Hafez Streets, Salmane Farsi St., Ahvaz,
Iran
Tel: +98 611 221 27 56
Fax: +98 611 222 99 40
...................................................................................................
Qom Central Branch
Opposite the Telecommunication center, Nouzdahe Dey St.,
Qom Iran
Tel: +98 251 770 26 70
Fax: +98 251 776 05 55
...................................................................................................
Isfahan Shahin Shahr Central Branch
Ferdowsi St., Shahin Shahr, Isfahan, Iran
Tel: +98 312 528 89 0
Fax: +98 312 524 48 96
...................................................................................................
53
>|
Babol Central Branch
Chaharsough, Imam St., Babol, Iran
Tel: +98 111 222 30 17
Fax: +98 111 222 30 16
...................................................................................................
Sari Gharen Branch
Gharen St., Sari, Iran
Tel: +98 151 220 00 62
Fax: +98 151 220 26 62
...................................................................................................
Birajnd Central Branch
Imam Khomeini Sq., Birjand, Iran
Tel: +98 561 223 23 95
Fax: +98 561 223 23 95
...................................................................................................
Bojnourd Central Branch
Next to Dr. Shariati St., Taleghani – e – Gharbi St., Bojnourd,
Iran
Tel: +98 584 223 81 18
Fax: +98 584 223 81 18
...................................................................................................
Bandar Anzali Central Branch
Shahid Motahhari St., Bandar Anzali, Iran
Tel: +98 181 424 40 37
Fax: +98 181 424 40 37
...................................................................................................
Marivan Central Branch
Mohammad Veisi Bazaar, Before Shahid Fahmideh Sq.,
Marivan, Iran
Tel: +98 875 322 14 21
Fax: +98 875 322 14 21
...................................................................................................
Arak Central Branch
Next to Haji Taghi Khan Mosque, Mohseni St., Arak, Iran
Tel: +98 861 21 00 05
Fax: +98 861 21 00 05
...................................................................................................
Baneh Central Branch
Before Imam Blvd, Imam St., Baneh, Iran
Tel: +98 875 422 71 85
Fax: +98 875 422 71 85
...................................................................................................
Yazd Central Branch
Shahid Rajaee St., Yazd, Iran
Tel: +98 351 622 99 50
Fax: +98 351 622 99 50
...................................................................................................
Boushehr Central Branch
Opposite to Fatemiyeh St., Imam Khomeini St., Boushehr, Iran
Tel: +98 771 555 75 61
Fax: +98 771 556 44 44
...................................................................................................
Qeshm Central Branch
Southern Gate of Setareh International Market, Qeshm
Island, Iran
Tel: +98 763 524 27 94
Fax: +98 763 524 27 94
...................................................................................................
Shahr – e – Kord Central Branch
Next to Mellat bazaar, Mellat St., Shahr – e – Kord, Iran
Tel: +98 381 226 47 67
Fax: +98 381 226 47 67
...................................................................................................
Sanandaj Keshavarz Branch
Next to the Post Office, Keshavarz St., Sanandaj, Iran
Tel: +98 871 322 99 89
Fax: +98 871 322 99 89
...................................................................................................
Semnan Central Branch
Taleghani St., Semnan, Iran
Tel: +98 231 334 47 27
Fax: +98 231 334 47 27
...................................................................................................
Tonkabon Central Branch
Next to Shahid Rajaee Hospital, Imam Khomeini St.,
Tonekabon, Iran
Tel: +98 192 422 45 93
Fax: +98 192 422 35 65
...................................................................................................
Khorramabad Central Branch
Bank Junction, Iman Khomeini St., Khorramabad, Iran
Tel: +98 661 221 92 54
Fax: +98 661 220 09 98
...................................................................................................
Gorgan Central Branch
Next to Park – e – Shahr, Pasdaran St., Vahdat Sq., Gorgan, Iran
Tel: +98 171 222 41 79
Fax: +98 171 222 02 17
...................................................................................................