Profit Sharing Mechanism

Profit Sharing Mechanism for Distribution of Profit for the month of June 2018

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

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

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

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

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

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

In case of a loss, as per the rules of Mudarabah, the deposit pool will share the loss in the ratios of investment of depositors.

Weightages declared for the month of June 2018 are:


S. # Products Weightages Assigned
1 Savings Deposit 0.64
2 AL Habib Islamic Young Saver Account 0.97
3 AL Habib Islamic Asaan Savings Account (monthly profit) 0.78
4 Mahana Amdani Savings Account (1 - 49,999) 0.64
5 Mahana Amdani Savings Account (50,000 - 9,999,999) 0.65
6 Mahana Amdani Savings Account (10,000,000 - 24,999,999) 0.68
7 Mahana Amdani Savings Account (25,000,000 – 49,999,999)) 0.69
8 Mahana Amdani Savings Account (50,000,000 - 199,999,999) 0.75
9 Mahana Amdani Savings Account (200,000,000 & above) 0.85
10 AL Habib Tijarat Account (Current Remunerative)) 0.002
11 AL Habib Apna Individual Account (Current Remunerative) 0.002
12 AL Habib Senior Citizen Account 0.97
13 Term Deposit - 7 Days 0.80
14 Term Deposit - 1 month (1 - 9,999,999) 0.85
15 Term Deposit - 1 month (10,000,000 - 24,999,999) 0.88
16 Term Deposit - 1 month (25,000,000 - 49,999,999) 0.90
17 Term Deposit - 1 month (50,000,000 - 99,999,999) 0.92
18 Term Deposit - 1 month(100,000,000 & above) 0.94
19 Term Deposit - 3 months (1 - 9,999,999) 0.92
20 Term Deposit - 3 months (10,000,000 - 24,999,999) 0.93
21 Term Deposit - 3 months (25,000,000 - 49,999,999) 0.94
22 Term Deposit - 3 months (50,000,000 - 99,999,999) 0.95
23 Term Deposit - 3 months(100,000,000 & above) 0.97
24 Term Deposit - 6 months (1 - 9,999,999) 0.95
25 Term Deposit - 6 months (10,000,000 - 24,999,999) 0.96
26 Term Deposit - 6 months (25,000,000 - 49,999,999) 0.97
27 Term Deposit - 6 months (50,000,000 - 99,999,999) 0.99
28 Term Deposit - 6 months(100,000,000 & above) 1.07
29 Term Deposit - 1 year - (1 - 9,999,999) (profit paid monthly) 0.98
30 Term Deposit - 1 year - (10,000,000 - 24,999,999) (profit paid monthly) 0.99
31 Term Deposit - 1 year - (25,000,000 - 49,999,999) (profit paid monthly) 1.01
32 Term Deposit - 1 year - (50,000,000-99,999,999)(profit paid monthly) 1.02
33 Term Deposit - 1 year -(100,000,000 & above) (profit paid monthly) 1.05
34 Term Deposit - 1 year - (1 - 9,999,999) (profit paid at maturity) 1.02
35 Term Deposit - 1 year - (10,000,000 - 24,999,999) (profit paid at maturity) 1.03
36 Term Deposit - 1 year - (25,000,000 - 49,999,999) (profit paid at maturity) 1.04
37 Term Deposit - 1 year - (50,000,000 - 99,999,999)(profit paid at maturity) 1.05
38 Term Deposit - 1 year -(100,000,000 & above) (profit paid at maturity) 1.07
39 Term Deposit - 3 years -(1 - 99,999,999) (profit paid monthly) 1.06
40 Term Deposit - 3 years - (100,000,000 & above) (profit paid monthly) 1.10
41 Term Deposit - 3 years - (profit paid at maturity) 1.07
42 Term Deposit - 5 years - (profit paid at maturity) 1.08

For Foreign Currency Deposit Pool

The Bank’s profit sharing ratio will be 95% of the Net Income and Depositor(s) profit sharing ratio will be 5% of the Net Income.

 

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