BAHL - transmission of half yearly report for the period ended june 30, 2025

Corporate Information 2

Directors' Review 4

Independent Auditors' Review Report to the Member of Bank AL Habib Limited 6

Unconsolidated Condensed Interim Statement of Financial Position 7

Unconsolidated Condensed Interim Statement of Profit and Loss Account 8

Unconsolidated Condensed Interim Statement of Comprehensive Income 9

Unconsolidated Condensed Interim Statement of Changes in Equity 10

Unconsolidated Condensed Interim Cash Flow Statement 12

Notes to the Unconsolidated Condensed Interim Financial Statements 13

Consolidated Financial Statements 56

Website https://www.bankalhabib.com

It is our pleasure to present the un-audited financial statements of Bank AL Habib Limited along with the un-audited consolidated financial statements of Bank AL Habib Limited and the Bank's Subsidiaries AL Habib Capital Markets (Private) Limited, AL Habib Asset Management Limited, and AL Habib Exchange Company (Private) Limited for the half year ended June 30, 2025.

Alhamdolillah, during the period under review, the performance of the Bank continued to be satisfactory. The deposits increased to Rs. 2.48 trillion as compared to Rs. 2.28 trillion on December 31, 2024. In the same period, advances decreased to Rs. 903.5 billion from Rs. 910.9 billion, while investments increased to Rs. 1.94 trillion from Rs. 1.92 trillion. The pre-tax profit of the Bank for the half year ended June 30, 2025, was Rs. 39.08 billion as compared to Rs. 40.60 billion during the corresponding period last year. The profit after tax for the half year ended June 30, 2025, was Rs. 19.32 billion compared with Rs. 21.14 billion during 2024.

The Board of Directors, in its meeting held on August 27, 2025, has declared 2nd interim cash dividend of Rs. 3.50 per share i.e. 35%, in addition to 35% already paid, bringing the total cash dividend to 70% for the half year ended June 30, 2025.

By the Grace of Allah, the Bank now has a network of 1,267 offices, comprising 1,256 branches, 8 sub-branches, and 3 Representative Offices. Our branch network includes 319 Islamic Banking Branches and 2 Overseas Branches. Continuing with our branch expansion policy, the Bank intends to open more branches during the year 2025. During the year, the Bank had closed its Representative office in Nairobi, Kenya. The closure of Representative office is in line with the Bank's strategy, and it will not have any material impact on the overall operating and financial position of the Bank.

Alhamdolillah, Pakistan Credit Rating Agency Limited (PACRA) has maintained the Bank's long term entity and short term entity ratings at AAA (Triple A) and A1+ (A One plus), respectively. This long term credit rating AAA (Triple A) denotes the highest credit quality with the lowest expectation of credit risk, and indicates exceptionally strong capacity for timely payment of financial commitments.

The ratings of our unsecured, subordinated Term Finance Certificates (TFCs) are AAA (Triple A) for TFC-2021 and TFC-2022, and AA+ (Double A plus) for TFC-2017 (perpetual) and TFC-2022 (perpetual). These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments. Further, the TFC-2022 & the TFC-2022 (perpetual) issued in 2022, were listed on Pakistan Stock Exchange (PSX) pursuant to Chapter 5C of PSX Rule Book.

We wish to thank our customers, for their continued trust and support, local & foreign correspondents for their confidence and cooperation, and the State Bank of Pakistan for their guidance. We also thank all our staff members for their sincerity, dedication, and hard work.

Mansoor Ali Khan

Chief Executive

Abbas D. Habib

Chairman Board of Directors

Karachi: August 27, 2025

We have reviewed the accompanying unconsolidated condensed interim statement of financial position of Bank AL Habib Limited (the Bank) as at 30 June 2025 and the related unconsolidated condensed interim profit and loss account, unconsolidated condensed interim statement of comprehensive income, unconsolidated condensed interim statement of changes in equity, unconsolidated condensed interim cash flow statement and notes to the unconsolidated condensed interim financial statements for the six-month period then ended (here-in-after referred to as the "unconsolidated condensed interim financial statements"). Management is responsible for the preparation and presentation of these unconsolidated condensed interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these unconsolidated condensed interim financial statements based on our review.

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of unconsolidated condensed interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the accompanying unconsolidated condensed interim financial statements are not prepared, in all material respects, in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting.

Pursuant to the requirement of Section 237(1)(b) of the Companies Act, 2017, only cumulative figures for the half year, presented in the second quarter accounts are subject to a limited scope review by the statutory auditors of the Bank. Accordingly, the figures of the condensed interim unconsolidated profit and loss account and condensed interim unconsolidated statement of comprehensive income for the three months period ended 30 June 2025 have not been reviewed by us.

The engagement partner on the review resulting in this independent auditor's review report is Muhammad Taufiq.

Date: August 28, 2025 Karachi

KPMG Taseer Hadi & Co. Chartered Accountants

UDIN: RR202510106VRwWxnLAq

Note 2025 2024

The annexed notes 1 to 43 form an integral part of these unconsolidated condensed interim financial statements.

MANSOOR ALI KHAN

ASHAR HUSAIN

Note (Rupees in '000)

(Restated) (Restated)

Mark-up / return / interest earned 26 177,976,326 243,746,758 85,089,257 123,942,468

Mark-up / return / interest expensed 27 (111,641,632) (169,111,709) (52,310,773) (86,400,789)

Net mark-up / return / interest income 66,334,694 74,635,049 32,778,484 37,541,679

Fee and commission income 28

Dividend income

Foreign exchange income Income / (loss) from derivatives

Loss on securities - net 29

Net gain / (loss) on derecognition of

financial assets measured at amortised cost

Other income 30

Total non mark-up / interest income 15,341,627 14,169,053 7,604,099 6,577,096

(39,769,906) (22,986,434) (21,736,080)

(910,858)

(127,846)

(489,910)

(1,628)

Operating expenses 31

Workers welfare fund

Other charges 32

Total non mark-up / interest expenses (45,241,275) (40,808,610) (23,387,375) (22,227,618)

Credit loss allowance and write offs - net 33 2,648,755 (7,391,716) 1,491,895 (516,584)

Extra ordinary / unusual items - - - -

Taxation 34 (19,759,465) (19,465,662) (9,376,040) (10,268,528)

The annexed notes 1 to 43 form an integral part of these unconsolidated condensed interim financial statements.

MANSOOR ALI KHAN

ASHAR HUSAIN

(Restated) (Restated)

Items that may be reclassified to statement of profit and loss account in subsequent periods:

Effect of translation of net investment in foreign branches

Movement in surplus on revaluation of debt investments through FVOCI - net of tax

Items that will not be reclassified to statement of profit and loss account in subsequent periods:

Movement in surplus / (deficit) on revaluation of equity investments - net of tax

Movement in surplus on revaluation of property and equipment - net of tax

Movement in surplus / (deficit) on revaluation of non-banking assets - net of tax

The annexed notes 1 to 43 form an integral part of these unconsolidated condensed interim financial statements.

MANSOOR ALI KHAN

ASHAR HUSAIN

Revenue Reserves Surplus / (deficit) on revaluation of

Share Statutory Foreign Special General Investments Property and Non Banking Unappropriated Total Capital Reserve Currency Reserve Reserve Equipment Assets Profit

Translation Reserve

(Rupees in '000)

Balance as at 01 January 2024 - audited 11,114,254 22,700,012

Effect of adoption of IFRS 9 (net of tax) - -

Profit after taxation for the half year ended 30 June 2024 - restated - -

Other comprehensive income for the half year ended 30 June 2024 - net of tax

Effect of translation of net investment in foreign branches Movement in surplus on revaluation of investments in

debt securities - net of tax

Movement in deficit on revaluation of investments in equity securities - net of tax

Movement in surplus on revaluation of property and equipment - net of tax

Movement in deficit on revaluation of non-banking assets - net of tax

Total other comprehensive income - net of tax - -

Transfer to statutory reserve - 2,113,811

Loss on sale of equity investments - FVOCI - -

Transfer from surplus on revaluation of assets to

unappropriated profit - net of tax - -

Transactions with owners, recorded directly in equity Final cash dividend (Rs. 5.0 per share) - December 2023 Interim cash dividend (Rs. 3.5 per share) - March 2024

- - - - - -00 -00 - (9,447,116 ) (9,447,116 )

Balance as at 30 June 2024 - unaudited - restated 11,114,254 24,813,823 4,745,129 126,500 540,000 1,508,842 16,526,270 169,368 77,946,979 137,491,165

Profit after taxation for the half year ended 31 December 2024 - - - - - -00 -00 - 18,724,073 18,724,073

Other comprehensive income for the half year ended 31 December 2024 - net of tax

Effect of translation of net investment in foreign branches Movement in surplus on revaluation of investments in

debt securities - net of tax

Movement in surplus on revaluation of investments in equity securities - net of tax

Remeasurement gain on defined benefit obligations - net of tax Movement in deficit on revaluation of property and equipment - net of tax Movement in deficit on revaluation of non-banking assets - net of tax

Total other comprehensive income - net of tax - - (47,504 ) - - 4,360,384 (818,048 ) (3,281 ) 61,809 3,553,360

Revenue Reserves Surplus / (deficit) on revaluation of

Share Statutory Foreign Special General Investments Property and Non Banking Unappropriated Total Capital Reserve Currency Reserve Reserve Equipment Assets Profit

Translation Reserve

(Rupees in '000)

Transfer to statutory reserve - 1,872,408 - -00 - - - - (1,872,408 ) -

Transfer from surplus on revaluation of assets to

unappropriated profit - net of tax - - - - - - (139,288 ) (24 ) 139,312 -

-

-

-

-

-

-

-00

-00

-

-

-

-

-

-

-

-

(3,889,989 )

(3,889,989 )

(3,889,989 )

(3,889,989 )

Transactions with owners, recorded directly in equity Interim cash dividend (Rs. 3.5 per share) - June 2024 Interim cash dividend (Rs. 3.5 per share) - September 2024

- - - - - - - - (7,779,978 ) (7,779,978)

Balance as at 31 December 2024 - audited 11,114,254 26,686,231 4,697,625 126,500 540,000 5,869,226 15,568,934 166,063 87,219,787 151,988,620

Effect of adoption of IFRS 9 (net of tax) - - - -00 - 800,750 - - 26,333 827,083 Profit after taxation for the half year ended 30 June 2025 - - - -00 - - - - 19,324,336 19,324,336

-

-

-

-

-

-

-

-

-

-

152,590 -

-

-

-

-00

-00

-00

-

-00

-

-

-

-

-

-2,006,737

122,401 -

-

-

-

-125,643 -

-

-

-

-741

-

-

-

-

-

152,590

2,006,737

122,401

125,643

741

Other comprehensive income for the half year ended 30 June 2025 - net of tax

Effect of translation of net investment in foreign branches

Movement in surplus on revaluation of investments in debt instruments - net of tax Movement in surplus on revaluation of investments in equity instruments - net of tax Movement in surplus on revaluation of property and equipment - net of tax Movement in surplus on revaluation of non-banking assets - net of tax

Total other comprehensive income - net of tax - - 152,590 -00 - 2,129,138 125,643 741 - 2,408,112 Transfer to statutory reserve - 1,932,434 - -00 - - - - (1,932,434) -Loss on sale of equity investments - FVOCI - - - -00 - 11,390 - - (11,390 ) -Transfer from surplus on revaluation of assets to unappropriated profit - net of tax - - - - - - (105,473 ) (64 ) 105,537 -

-

-

-

-

-

-

-00

-00

-

-

-

-

-

-

-

-

(7,224,265 )

(3,889,989 )

(7,224,265 )

(3,889,989 )

Transactions with owners, recorded directly in equity Final cash dividend (Rs. 6.5 per share) - December 2024 Interim cash dividend (Rs. 3.5 per share) - March 2025

- - - - - - - - (11,114,254 ) (11,114,254 )

Balance as at 30 June 2025 - unaudited 11,114,254 28,618,665 4,850,215 126,500 540,000 8,810,504 15,589,104 166,740 93,617,915 163,433,897

The annexed notes 1 to 43 form an integral part of these unconsolidated condensed interim financial statements.

MOHAMMAD RAFIQUDDIN MEHKARI

MANSOOR ALI KHAN

FARHANA MOWJEE KHAN

ASHAR HUSAIN

ABBAS D. HABIB

30 June 30 June

2025 2024

(Rupees in '000)

CASH FLOW FROM OPERATING ACTIVITIES (Restated)

Profit before taxation 39,083,801 40,603,776

Less: dividend income (961,577 ) (866,414 )

38,122,224 39,737,362

Adjustments:

Net mark-up / return / interest income Depreciation

Depreciation on right-of-use assets Amortisation

Workers welfare fund

Credit loss allowance and write-offs - net Gain on sale of property and equipment - net Gain on termination of leases and RoU - net Unrealised loss measured at FVPL

Charge for defined benefit plan Charge for compensated absences

(66,334,694 )

3,682,751

1,355,777

98,858

797,628

(2,648,755 )

(498,210 )

(85,578 )

314,331

630,000

161,708

(74,635,049 )

2,578,339

1,198,462

105,530

910,858

7,391,716

(500,528 )

(46,488 )

237,212

600,000

211,733

Decrease / (increase) in operating assets

(62,526,184 ) (61,948,215 )

(24,403,960 ) (22,210,853 )

Lendings to financial institutions 19,251,900 1,649,716

Securities classified as FVPL 1,494,669 2,865,881

Advances 7,997,973 62,379,929

Other assets (excluding advance taxation and markup receivable) (8,968,500 ) (2,213,200 )

19,776,042 64,682,326

(Decrease) / Increase in operating liabilities

Bills payable 21,434,949 836,099

Borrowings (227,124,187 ) 26,398,438

Deposits and other accounts 197,950,786 288,158,447

Other liabilities (excluding markup payable) (29,489,267 ) 10,918,678

(37,227,719 ) 326,311,662

(41,855,637 ) 368,783,135

Mark-up / return / interest received 191,287,147 236,480,896

Mark-up / return / interest paid (112,032,982 ) (166,849,998 )

Income tax paid (36,001,895 ) (18,797,429 )

Net cash generated from operating activities 1,396,633 419,616,604

CASH FLOW FROM INVESTING ACTIVITIES

Net investments in amortised cost securities

Net investments in securities classified as FVOCI Net investments in subsidiaries

Dividends received

Investments in property and equipment and intangible assets Proceeds from sale of property and equipment

Effect of translation of net investment in foreign branches

(5,449,829 )

(993,731 ) -

837,878

(9,030,992 )

512,618

152,590

3,015,522

(333,222,664 )

(1,000,000 )

867,904

(6,689,158 )

473,741

(73,231 )

Net cash used in investing activities (13,971,466 ) (336,627,886 )

CASH FLOW FROM FINANCING ACTIVITIES

Payments of subordinated debt Dividend paid

Payments of lease obligations against right-of-use assets

Net cash used in financing activities (13,185,754 ) (15,144,420 )

(Decrease) / increase in cash and cash equivalents (25,760,587 ) 67,844,298

Cash and cash equivalents at beginning of the period 205,187,585 147,202,286

Cash and cash equivalents at end of the period 179,426,998 215,046,584 The annexed notes 1 to 43 form an integral part of these unconsolidated condensed interim financial statements.

MANSOOR ALI KHAN

ASHAR HUSAIN

MOHAMMAD RAFIQUDDIN MEHKARI

FARHANA MOWJEE KHAN

ABBAS D. HABIB

1. STATUS AND NATURE OF BUSINESS

   Bank AL Habib Limited (the Bank) is a banking company incorporated in Pakistan on 15 October 1991 as a public limited company under repealed Companies Ordinance, 1984 (now the Companies Act, 2017). The Bank's registered office is at 126-C, Old Bahawalpur Road, Multan with principal place of business at 2nd Floor, Mackinnons Building, I.I. Chundrigar Road, Karachi. Its shares are listed on Pakistan Stock Exchange Limited. It is a scheduled bank principally engaged in the business of commercial banking with a network of 1,256 branches (31 December 2024: 1,207

   branches), 08 sub-branches (31 December 2024: 14 sub-branches), 03

   representative offices (31 December 2024: 04 representative offices) and 12 booths

   (31 December 2024: 12 booths). The branch network of the Bank includes 02

   overseas branches (31 December 2024: 02 overseas branches) and 319 Islamic

   Banking branches (31 December 2024: 276 Islamic Banking branches).

2. BASIS OF PREPARATION

   1. In accordance with the directives of the Federal Government regarding the shifting of the banking system to Islamic modes, the State Bank of Pakistan (SBP) has issued various circulars from time to time. Permissible forms of trade-related modes of financing includes purchase of goods by banks from customers and immediate resale to them at appropriate mark-up in price on deferred payment basis. The purchase and resale arising under these arrangements are not reflected in these unconsolidated condensed interim financial statements as such, but are restricted to the amount of facility actually utilised and the appropriate portion of mark-up thereon. However, the Islamic Banking branches of the Bank have complied with the requirements set out under the Islamic Financial Accounting Standards (IFAS), issued by the Institute of Chartered Accountants of Pakistan (ICAP) as are notified under the provisions of the Companies Act, 2017.

   2. Key financial information of the Islamic Banking branches is disclosed in note 40 to these unconsolidated condensed interim financial statements.

   3. These unconsolidated condensed interim financial statements are presented in Pak Rupees which is the Bank's functional and presentation currency and represent separate financial statements of the Bank in which investments in subsidiaries and associates are stated at cost less provision for impairment, if any and are not consolidated or accounted for by using equity method of accounting.

   4. The Bank believes that there is no significant doubt on the Bank's ability to continue as a going concern. Therefore, these unconsolidated condensed interim financial statements are prepared on the going concern basis.

   5. Statement of Compliance

      1. These unconsolidated condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan. The accounting and reporting standards comprise of:

         • International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as are notified under the Companies Act, 2017;

         • IFAS issued by ICAP, as are notified under the Companies Act, 2017;

         • Provisions of and directives issued under the Banking Companies Ordinance, 1962 and the Companies Act, 2017; and

         • Directives issued by SBP and the Securities and Exchange Commission of Pakistan (SECP).

           Whenever the requirements of the Banking Companies Ordinance, 1962, the Companies Act, 2017 or the directives issued by SBP and SECP differ with the requirements of the IFRS or IFAS, requirements of the Banking Companies Ordinance, 1962, the Companies Act, 2017 and the said directives shall prevail.

      2. The disclosures made in these unconsolidated condensed interim financial statements have been limited based on the format prescribed by SBP vide BPRD Circular No. 02, dated 09 February 2023 and International Accounting Standard (IAS) 34, 'Interim Financial Reporting'. They do not include all the information required in the annual financial statements, and these unconsolidated condensed interim financial statements should be read in conjunction with the annual financial statements of the Bank for the year ended 31 December 2024.

      3. SBP has deferred the applicability of International Accounting Standard (IAS) 40, 'Investment Property' for Banking Companies in Pakistan through BSD Circular Letter No. 10 dated 26 August 2002 till further instructions. Also, SECP has deferred the applicability of IFRS 7,'Financial Instruments: Disclosures' through its notification

         S.R.O 411 (I) / 2008 dated 28 April 2008. Accordingly, the requirements of these standards have not been considered in the preparation of these unconsolidated condensed interim financial statements.

      4. SBP vide its BPRD Circular No. 04 dated 25 February 2015, has clarified that the reporting requirements of IFAS 3, 'Profit and Loss Sharing on Deposits' for Islamic Banking Institutions (IBIs) relating to annual, half yearly and quarterly financial statements would be notified by SBP through issuance of specific instructions and uniform disclosure formats in consultation with IBIs. These reporting requirements have not been ratified to date. Accordingly, the disclosure requirements under IFAS 3 have not been considered in the preparation of these unconsolidated condensed interim financial statements.

      5. IFRS 10, 'Consolidated Financial Statements' was made applicable from period beginning on or after 01 January 2015 vide S.R.O 633 (I) / 2014 dated 10 July 2014 by SECP. However, SECP has directed through S.R.O 56 (I) / 2016 dated 28 January 2016 that the requirement of consolidation under section 228 of the Companies Act, 2017 and IFRS 10, 'Consolidated Financial Statements' is not applicable in case of investment by companies in mutual funds established under trust structure.

      6. These unconsolidated condensed interim financial statements of the Bank are prepared using generally consistent accounting policies. However, as per SBP's IFRS

         9 application instructions, overseas branches comply with the local regulations enforced within their respective jurisdictions under IFRS 9 - 'Financial instruments'.

      7. The Bank received an extension from SBP up to 31 December 2025 for application of Effective Interest Rate (EIR) in general for all financial assets and liabilities (excluding staff loans / subsidised loans), however as financial assets other than advances and financial liabilities were already effectively carried at EIR before the implementation of IFRS 9. Hence, said extension has only been applied on advances (excluding staff loans / subsidised loans i.e. Temporary Economic Refinance Facility). Therefore, advances are now carried at cost, excluding staff loans, TERF and advances pertaining to overseas operations, which are carried at amortised cost, net of expected credit loss allowances.

         Further, SBP through BPRD Circular Letter No. 01 of 2025 dated 22 January 2025 has clarified the followings:

         • Islamic Banking Institutions (IBIs) are allowed to follow IFAS 1 & 2 where applicable and continue the existing accounting methodology on other Islamic products until issuance of further instruction in this regard.

         • The treatment of charity should be in line with the existing practices as defined in SBP's instructions issued via IBD Circular No. 02 of 2008 and should not be recognized as income.

           Revenue from Islamic products would have increased by Rs. 440.573 million, if IFRS 9 had been adopted in its entirety.

      8. Standards, interpretations and amendments to published approved accounting standards that are effective in the current period

         There are certain new standards, interpretations and amendments that became effective during the period. However, these are considered either not to be relevant or not have any significant impact on the Bank's unconsolidated condensed interim financial statements except for requirements of IFRS 9 - 'Financial instruments' relating to unlisted equity securities as explained in note 4.1.

      9. Standards, interpretations and amendments to published approved accounting standards that are not yet effective Standards and amendments Effective date (accounting periods beginning on or after)

         • Amendments to Classification and Measurement of Financial Instruments - Amendments to

           IFRS 9 and IFRS 7 01 January 2026

         • IFRS 18 - Presentation and disclosure

           in financial statements 01 January 2027

           The above amendments are not expected to have any material impact on these unconsolidated condensed interim financial statements.

3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

   The basis for accounting estimates adopted in the preparation of these unconsolidated condensed interim financial statements are consistent with those applied in the preparation of the annual financial statements of the Bank for the year ended 31 December 2024 except for requirements of IFRS 9 relating to unlisted equity instruments as explained in note 4.1.

4. MATERIAL ACCOUNTING POLICY INFORMATION

   The material accounting policy information related to the preparation of these unconsolidated condensed interim financial statements is consistent with that applied in the preparation of the annual financial statements of the Bank for the year ended 31 December 2024. Impacts of requirements of IFRS 9 relating to unlisted equity instruments and subsidised loans and borrowings are explained in note 4.1 and note 4.2.

   1. Unlisted Equity Securities

      In accordance with BPRD Circular Letter No. 16 dated 29 July 2024, SBP has relaxed the requirement for the application of IFRS 9 'Financial Instruments' to measuring unlisted equity securities at fair value under IFRS 13 effective from 01 January 2025. The measurement of fair value of investments in unlisted equity securities involves the use of different methodologies and assumptions. The Bank measures the fair valuation of unlisted equity securities using appropriate valuation techniques and fair valuation models in accordance with IFRS 13 - Fair Value Measurement. Therefore, the Bank has taken the impact of fair value adjustment to equity at the beginning of the current accounting period and information related to 31 December 2024 has not been restated as allowed under modified retrospective approach for restatement permitted under IFRS 9. The impact of application as at 01 January 2025 is shown below:

      (Rupees in '000)

      Increase in investments - unlisted equity securities 1,723,404

      Increase in deferred tax liabilities 896,321

      Increase in revaluation of assets 800,750

      Increase in unappropriated profit 26,333

   2. Subsidised Loans and Borrowings

      The Bank adopted IFRS 9 in accordance with the application instructions, effective 01 January 2024, using the modified retrospective approach for restatement as permitted under the standard. In the annual audited financial statements for the year ended 31 December 2024, the cumulative impact of the initial application amounted to Rs. 2,188.661 million, which was recorded as an adjustment to equity at the beginning of the comparative accounting period.

      Further, pursuant to the extended implementation timelines provided by SBP under BPRD Circular Letter No. 16 dated 29 July 2024, and BPRD Circular Letter No. 01 dated 22 January 2025, the Bank was required to apply fair value measurement to subsidised staff financing, implement modification accounting for financial assets and liabilities, and recognize income using the EIR method, with effect from the last quarter of 2024. However, in line with SBP via its Letter No. BPRD/RPD/822456/25 dated 22 January 2025, the recognition of income on EIR has been further deferred till 31 December 2025.

      Therefore, the comparative figures for the half year ended 30 June 2024, presented in the unconsolidated condensed interim statement of profit and loss for the half year ended 30 June 2025, have been restated as summarised:

      Unconsolidated Condensed Interim Statement of Profit and Loss Account Un-audited 30 June 2024 (Rupees in '000) Description

      Mark-up / return / interest earned 1,431,190 Impact of subsidised loans and staff financing Mark-up / return / interest expensed 902,136 Impact of subsidised borrowings from SBP Operating expenses 428,906 Impact of prepaid staff cost amortisation

      Taxation 49,073 Tax impact of restatement

      Profit after taxation 51,075

      (Rupees)

      Basic and diluted earnings per share 0.05 EPS impact of restatement

5. FINANCIAL RISK MANAGEMENT

   The financial risk management objectives and policies adopted by the Bank are consistent with those disclosed in the annual financial statements of the Bank for the year ended 31 December 2024.

6. CASH AND BALANCES WITH TREASURY BANKS

In hand:

Local currency Foreign currencies

With the State Bank of Pakistan (SBP) in:

Outside Pakistan:

In current accounts 4,495,120 5,129,043

In deposit accounts 72,559 488,243

Less: credit loss allowance held against

balances with other banks 7.1 (74,060) (947) Balances with other banks - net of credit loss allowance 4,650,050 5,836,908

Opening balance 947 3,612

Charge / (reversal):

Charge for the period / year 73,211 75

Reversal for the period / year (101) (2,738)

Foreign exchange adjustments 3 (2)

Closing balance 74,060 947

1. LENDINGS TO FINANCIAL INSTITUTIONS

   In local currency:

   Musharaka placements 9,900,000 26,000,000 Repurchase agreement lendings (Reverse Repo) 9,794,900 12,946,800

   19,694,900 38,946,800

   Less: credit loss allowance held against lendings to

   financial institutions 8.1 (2,659) (5,258)

   Lendings to financial institutions

   - net of credit loss allowance 19,692,241 38,941,542

   1. Credit Loss Allowance - Stage 1

      Opening balance 5,258 223

      Charge / (reversal):

      5,258

      (223)

      Charge for the period / year 2,413

      Reversal for the period / year (5,012)

      (2,599) 5,035

      Closing balance 2,659 5,258

      
      
      

2. INVESTMENTS

   1. Investments by type: Debt instruments Amortised Cost

      Federal Government Securities Others

      FVOCI

      Federal Government Securities Non Government Debt Securities Foreign Securities

      FVPL

      30 June 2025 (Un-audited) 31 December 2024 (Audited)

      Cost / amortised Credit loss Surplus / Carrying Cost / amortised Credit loss Surplus / Carrying

      cost allowance (deficit) value cost allowance (deficit) Value

      (Rupees in '000)

      399,015,475

      -

399,015,475 (697,443) - 398,318,032 393,565,646 (855,715) - 392,709,931

1,511,143,018 (5,363,923) 15,841,403 1,521,620,498 1,510,008,493 (6,637,701) 11,908,799 1,515,279,591

Federal Government Securities 1,147,873 - - 1,147,873 2,642,542 - - 2,642,542

Equity Instruments

FVOCI - Non Reclassifiable

Shares

• Listed companies

• Unlisted companies

336,926 - 2,513,815 2,850,741 374,892 (50,811) 578,915 902,996

Investments mandatorily classified

/ measured at FVPL

Units of Mutual Funds 4,699,950 - (314,331) 4,385,619 4,238,097 - 461,853 4,699,950

Associates 4,614,653 - - 4,614,653 4,614,653 - - 4,614,653

Subsidiaries 3,883,250 - - 3,883,250 3,883,250 - - 3,883,250

Total Investments 1,924,841,145 (6,061,366) 18,040,887 1,936,820,666 1,919,327,573 (7,544,227) 12,949,567 1,924,732,913

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Pakistan Investment Bonds 304,638,000 518,019,000

Impact of adoption of IFRS 9 (50,811) -Charge / (reversal):

Charge for the period / year

Reversal for the period / year Reversal on disposal

Amounts written off - (1,046,371)

Foreign exchange adjustments 114,162 (99,599)

Closing Balance 6,061,366 7,544,227

20