Bank Al Habib Ltd.PSX: BAHL

BAHL - Transmission of Quarterly Report for the period ended March 31, 2026

Apr 29, 2026 at 10:27 AM UTC · Issued by Bank AL Habib Ltd.

Bank AI Habib Limited

CONTENTS

Corporate Information 2

Directors' Review 4

Unconsolidated Condensed Interim Statement of Financial Position 6

Unconsolidated Condensed Interim Statement of Profit and Loss Account 7

Unconsolidated Condensed Interim Statement of Comprehensive Income 8

Unconsolidated Condensed Interim Statement of Changes in Equity 9

Unconsolidated Condensed Interim Cash Flow Statement 11

Notes to the Unconsolidated Condensed Interim Financial Statements 12

Consolidated Financial Statements 55

CORPORATE INFORMATION

Board of Directors	Abbas D. Habib Aamir Amin* Anwar Haji Karim Farhana Mowjee Khan Humayun Bashir Mohammad Rafiquddin Mehkari Qasim Habib Qumail R. Habib Shoaib Javed Hussain Syed Mohammed Hussain	Chairman Executive Director
	Mansoor Ali Khan	Chief Executive
Audit Committee	Mohammad Rafiquddin Mehkari Anwar Haji Karim Farhana Mowjee Khan Syed Mohammed Hussain	Chairman Member Member Member
Human Resource &	Humayun Bashir	Chairman
Remuneration	Abbas D. Habib	Member
Committee	Farhana Mowjee Khan Shoaib Javed Hussain Syed Mohammed Hussain	Member Member Member
Credit Risk	Farhana Mowjee Khan	Chairperson
Management	Mohammad Rafiquddin Mehkari	Member
Committee	Qasim Habib Qumail R. Habib	Member Member
Risk Management	Mohammad Rafiquddin Mehkari	Chairman
Committee	Anwar Haji Karim Qasim Habib Qumail R. Habib Shoaib Javed Hussain	Member Member Member Member
IT & Digital Committee	Abbas D. Habib Humayun Bashir Qasim Habib Qumail R. Habib Syed Mohammed Hussain Mansoor Ali Khan	Chairman Member Member Member Member Member
Islamic Banking	Mohammad Rafiquddin Mehkari	Chairman
Conversion Committee Company	Farhana Mowjee Khan Humayun Bashir Shoaib Javed Hussain	Member Member Member
Secretary	Mohammad Taqi Lakhani

* Subject to fit and proper test clearance, which is awaited from the State Bank of Pakistan.

Chief Financial Officer Ashar Husain Statutory KPMG Taseer Hadi & Co. Auditors Chartered Accountants Legal Liaquat Merchant Associates Advisor Barristers, Advocates & Corporate Legal Consultants Registered 126-C, Old Bahawalpur Road, Office Multan Principal 2nd Floor, Mackinnons Building, Office I.I. Chundrigar Road, Karachi Share CDC Share Registrar Services Limited Registrar CDC House 99-B, Block-B, S.M.C.H.S. Main Shahrah-e-Faisal, Karachi-74400. Website www.bankalhabib.com

DIRECTORS' REVIEW

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 quarter ended March 31, 2026.

Alhamdolillah, during the period under review, the performance of the Bank continued to be satisfactory. The deposits increased to Rs. 2.80 trillion as compared to Rs. 2.60 trillion on December 31, 2025. In the same period, advances increased to Rs. 824.2 billion from Rs. 792.1 billion, while investments increased to Rs. 2.24 trillion from Rs. 2.03 trillion. The pre-tax profit of the Bank for the quarter ended March 31, 2026, was Rs. 15.02 billion as compared to Rs. 20.60 billion during the corresponding period last year. The profit after tax for the quarter ended March 31, 2026, was Rs. 7.09 billion compared with Rs. 10.21 billion during 2025.

The Board of Directors, in its meeting held on April 23, 2026, has declared 1st interim cash dividend of Rs. 3.50 per share i.e. 35% for the quarter ended March 31, 2026.

By the Grace of Allah, the Bank now has a network of 1,332 offices, comprising 1,329 branches, and 3 Representative Offices. Our branch network includes 398 Islamic Banking Branches and 2 Overseas Branches. Continuing with our branch expansion policy, the Bank intends to open more branches during the year 2026.

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: April 23, 2026

7.09

824.2

15.02

2.24

2.80

3.50

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2026 (Un-audited) (Audited) 31 March 31 December

Note 2026 2025

(Rupees in '000)

ASSETS
Cash and balances with treasury banks	6	194,938,264	189,466,913
Balances with other banks	7	9,256,215	7,196,550
Lendings to financial institutions	8	60,885,532	24,453,908
Investments	9	2,236,069,281	2,028,480,131
Advances	10	824,207,159	792,050,395
Property and equipment	11	83,022,199	82,542,745
Right-of-use assets	12	18,553,603	16,828,865
Intangible assets	13	29,732	63,301
Deferred tax assets	14	17,357,973	-
Other assets	15	187,134,096	162,681,089
Total Assets		3,631,454,054	3,303,763,897
LIABILITIES
Bills payable	17	44,559,951	59,749,478
Borrowings	18	457,405,802	290,260,824
Deposits and other accounts	19	2,796,442,715	2,599,087,013
Lease liabilities	20	22,641,502	20,845,724
Subordinated debt	21	25,958,018	25,983,600
Deferred tax liabilities	14	-	1,479,140
Other liabilities	22	128,179,156	135,089,767
Total Liabilities		3,475,187,144	3,132,495,546
NET ASSETS		156,266,910	171,268,351
REPRESENTED BY
Share capital		11,114,254	11,114,254
Reserves		35,947,843	35,220,243
Surplus on revaluation of assets	23	12,385,532	29,514,238
Unappropriated profit		96,819,281	95,419,616
		156,266,910	171,268,351
CONTINGENCIES AND COMMITMENTS	24

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

MANSOOR ALI KHAN

Chief Executive

ASHAR HUSAIN

Chief Financial Officer

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFIT AND LOSS ACCOUNT (UN-AUDITED) FOR THE THREE MONTHS PERIOD ENDED 31 MARCH 2026

Three months period ended

Note		31 March 2026	31 March 2025
Mark-up / return / interest earned	26	(Rupees 82,528,369		in '000) 92,887,069
Mark-up / return / interest expensed	27	(49,958,437)		(59,330,859)
Net mark-up / interest income		32,569,932		33,556,210
NON MARK-UP / INTEREST INCOME
Fee and commission income	28	5,042,358		5,458,635
Dividend income		67,742		68,913
Foreign exchange income Income / (loss) from derivatives Loss on securities - net	29	2,267,336 -(169,245)		2,108,149 -(244,455)
Net gain / (loss) on derecognition of financial assets measured at amortised cost		-		-
Other income	30	232,459		346,286
Total non mark-up / interest income		7,440,650		7,737,528
Total income		40,010,582		41,293,738
NON MARK-UP / INTEREST EXPENSES
Operating expenses	31	(23,676,565)		(21,426,618)
Workers' welfare fund		(323,440)		(420,341)
Other charges	32	(3,267)		(6,941)
Total non mark-up / interest expenses		(24,003,272)		(21,853,900)
Profit before credit loss allowance		16,007,310		19,439,838
Credit loss allowance and write-offs - net	33	(982,388)		1,156,860
Extra ordinary / unusual items		-		-
PROFIT BEFORE TAXATION		15,024,922		20,596,698
Taxation	34	(7,936,728)		(10,383,425)
PROFIT AFTER TAXATION		7,088,194		10,213,273
		(Rupees)
Basic and diluted earnings per share	35	6.38			9.19

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

MANSOOR ALI KHAN

Chief Executive

ASHAR HUSAIN

Chief Financial Officer

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) FOR THE THREE MONTHS PERIOD ENDED 31 MARCH 2026 Three months period ended 31 March 31 March 2026 2025 (Rupees in '000)

Profit after taxation for the period Other comprehensive income	7,088,194	10,213,273
Items that may be reclassified to the statement of
profit and loss account in subsequent periods:
Effect of translation of net investment in foreign branches	18,781	122,557
Movement in deficit on revaluation of investment in debt instruments classified as FVOCI - net of tax	(16,803,268)	(2,080,614)

(16,784,487) (1,958,057)

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

(40,627)

124,117

741

(272,669) -

Movement in deficit on revaluation of investment in equity instruments classified as FVOCI - 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

	(272,669)		84,231
Total comprehensive income for the period	(9,968,962)		8,339,447

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

MANSOOR ALI KHAN

Chief Executive

ASHAR HUSAIN

Chief Financial Officer

MOHAMMAD RAFIQUDDIN MEHKARI

Director

SYED MOHAMMED HUSSAIN

Director

ABBAS D. HABIB

Chairman

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE THREE MONTHS PERIOD ENDED 31 MARCH 2026

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 2025 - restated 11,114,254 26,686,231 4,697,625 126,500 540,000 7,570,243 15,568,934 166,063 87,246,120 153,715,970

Profit after taxation for the three months period ended 31 March 2025 - - - -00 - - - - 10,213,273 10,213,273

122,557

(2,080,614 )

(40,627 )

124,117

741

-741

-124,117 -

-(2,080,614 )

(40,627 ) -

-00

122,557 -

Other comprehensive income for the three months period ended 31 March 2025 - net of tax

Effect of translation of net investment in foreign branches Movement in deficit on revaluation of investment in

debt instruments - net of tax

Movement in deficit on revaluation of investment 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 - - 122,557 -00 - (2,121,241 ) 124,117 741 - (1,873,826 ) Transfer to statutory reserve - 1,021,327 - -00 - - - - (1,021,327 ) -

Transfer from surplus on revaluation of assets to

unappropriated profit - net of tax - - - -00 - - (52,737 ) (32 ) 52,769 -

Transaction with owners, recorded directly in equity

Final cash dividend (Rs. 6.5 per share) - December 2024 - - - -00 - - - - (7,224,265 ) (7,224,265 )

Balance as at 31 March 2025 - unaudited 11,114,254 27,707,558 4,820,182 126,500 540,000 5,449,002 15,640,314 166,772 89,266,570 154,831,152

Profit after taxation for the nine months period ended 31 December 2025 - - - -00 - - - - 20,424,135 20,424,135

(16,411 )

7,990,483

359,347

(705,627 )

(105 )

55,344

-(705,627 ) -

-55,344

-(105 ) -

-7,990,483

359,347 -

-00

(16,411 ) -

Other comprehensive income for the nine months period ended 31 December 2025 - net of tax

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

debt instruments - net of tax

Movement in surplus on revaluation of investment in equity instruments - net of tax

Remeasurement loss on defined benefit obligations - net of tax Movement in deficit 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 - - (16,411 ) - - 8,349,830 (105 ) 55,344 (705,627 ) 7,683,031

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 - 2,042,414 - - - -00 -00 - (2,042,414 ) -Loss on sale of equity instruments - FVOCI - - - - - 11,390 -00 - (11,390 ) -

Transfer from surplus on revaluation of assets to

unappropriated profit - net of tax - - - - - - (158,211 ) (98 ) 158,309 -

-00

(3,889,989 )

Transactions with owners, recorded directly in equity Interim cash dividend (Rs. 3.5 per share) - March 2025 Interim cash dividend (Rs. 3.5 per share) - June 2025 Interim cash dividend (Rs. 3.5 per share) - September 2025

- - - - - -00 -00 - (11,669,967 ) (11,669,967 )

Balance as at 31 December 2025 - audited 11,114,254 29,749,972 4,803,771 126,500 540,000 13,810,222 15,481,998 222,018 95,419,616 171,268,351

Impact of change in accounting policy - note 4.1 - - - - - -00 -00 - (31,065 ) (31,065 ) Profit after taxation for the three months period ended 31 March 2026 - - - - - -00 -00 - 7,088,194 7,088,194

18,781 -

-00

-(16,803,268 )

(272,669 )

-00

18,781

(16,803,268 )

(272,669 ) -

Other comprehensive income for the three months period ended 31 March 2026 - net of tax

Effect of translation of net investment in foreign branches

Movement in deficit on revaluation of investment in debt instruments - net of tax Movement in deficit on revaluation of investment 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 - - 18,781 - - (17,075,937 ) - - - (17,057,156 ) Transfer to statutory reserve - 708,819 - - - - - - (708,819 ) -Transfer from surplus on revaluation of assets to unappropriated profit - net of tax - - - - - -00 (52,737 ) (32 ) 52,769 -

Transaction with owners, recorded directly in equity

Final cash dividend (Rs. 4.5 per share) - December 2025 - - - - - - - - (5,001,414 ) (5,001,414 )

Balance as at 31 March 2026 - unaudited 11,114,254 30,458,791 4,822,552 126,500 540,000 (3,265,715 ) 15,429,261 221,986 96,819,281 156,266,910

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

MOHAMMAD RAFIQUDDIN MEHKARI

Director

MANSOOR ALI KHAN

Chief Executive

SYED MOHAMMED HUSSAIN

Director

ASHAR HUSAIN

Chief Financial Officer

ABBAS D. HABIB

Chairman

UNCONSOLIDATED CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED) FOR THE THREE MONTHS PERIOD ENDED 31 MARCH 2026

31 March 31 March

2026 2025

(Rupees in '000)

CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxation	15,024,922	20,596,698
Less: dividend income	(67,742 )	(68,913 )
	14,957,180	20,527,785
Adjustments:
Net mark-up / interest income	(32,569,932 )	(33,556,210 )
Depreciation	2,156,927	1,804,230
Depreciation on non-banking assets acquired in satisfaction of claims	152	152
Depreciation on right-of-use assets	817,553	670,405
Amortisation	33,569	23,559
Workers' welfare fund	323,440	420,341
Credit loss allowance and write-offs - net	982,388	(1,156,860 )
Gain on sale of property and equipment - net	(215,781 )	(309,537 )
Gain on termination of leases - net	(6,725 )	(28,801 )
Unrealised loss on revaluation of securities classified as FVPL	839,255	266,775
Charge for defined benefit plan	438,000	315,000
Charge for compensated absences	168,864	85,000
	(27,032,290 )	(31,465,946 )
(Increase) / decrease in operating assets	(12,075,110 )	(10,938,161 )
Lendings to financial institutions	(36,436,543 )	18,027,630
Securities classified as FVPL	3,278,807	1,340,655
Advances	(33,585,579 )	(36,078,188 )
Other assets (excluding advance taxation and mark-up receivable)	5,440,730	(8,073,436 )
	(61,302,585 )	(24,783,339 )
Increase / (decrease) in operating liabilities
Bills payable	(15,189,527 )	(19,297,562 )
Borrowings	167,981,890	34,186,993
Deposits and other accounts	197,355,702	101,465,396
Other liabilities (excluding mark-up payable)	(10,392,154 )	(19,481,379 )
	339,755,911	96,873,448
	266,378,216	61,151,948
Interest received	53,802,451	60,053,747
Interest paid	(46,893,900 )	(54,863,663 )
Income tax paid	(9,371,398 )	(18,551,062 )
Net cash flow generated from operating activities	263,915,369	47,790,970
CASH FLOW FROM INVESTING ACTIVITIES
Net investments in amortised cost securities	(38,041,768 )	(1,243,308 )
Net investments in securities classified as FVOCI Net investments in associates	(214,835,717 ) 6,000,000	(52,142,986 ) -
Dividends received	56,492	57,663
Investments in property and equipment	(2,642,241 )	(5,159,109 )
Proceeds from sale of property and equipment	221,641	317,775
Effect of translation of net investment in foreign branches	18,781	122,557
Net cash flow used in investing activities	(249,222,812 )	(58,047,408 )
CASH FLOW FROM FINANCING ACTIVITIES
Payments of subordinated debt	(1,000 )	(1,000 )
Dividend paid	(4,895,288 )	(7,134,257 )
Payments of lease obligations against right-of-use assets	(1,485,209 )	(1,220,356 )
Net cash flow used in financing activities	(6,381,497 )	(8,355,613 )
Increase / (decrease) in cash and cash equivalents	8,311,060	(18,612,051 )
Cash and cash equivalents at beginning of the period	194,948,585	205,187,585
Cash and cash equivalents at end of the period	203,259,645	186,575,534

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

MANSOOR ALI KHAN

Chief Executive

ASHAR HUSAIN

Chief Financial Officer

MOHAMMAD RAFIQUDDIN MEHKARI

Director

SYED MOHAMMED HUSSAIN

Director

ABBAS D. HABIB

Chairman

NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED) FOR THE THREE MONTHS PERIOD ENDED 31 MARCH 2026

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 the repealed Companies Ordinance, 1984 (now the Companies Act, 2017) having its registered office 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 1,329 branches (31 December 2025: 1,323 branches), 03 representative offices (31 December 2025: 03
representative offices) and 12 booths (31 December 2025: 12 booths). The branch
network of the Bank includes 02 overseas branches (31 December 2025: 02
overseas branches) and 398 Islamic Banking branches (31 December 2025: 392 Islamic Banking branches).
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 include purchase of goods by banks from customers and immediate resale to them at an appropriate mark-up in price on deferred payment basis. The purchases and resales 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 continue to be 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:
    - IFRS Accounting Standards issued by the International Accounting Standards Board (IASB) as are notified under the Companies Act, 2017;
    - Islamic Financial Accounting Standards (IFAS) issued by Institute of Chartered Accountants of Pakistan, as are notified under the Companies Act, 2017;
    - Provisions of, directives and notifications issued under the Banking Companies Ordinance, 1962 and the Companies Act, 2017; and
    - Directives issued by the State Bank of Pakistan (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 and notifications issued by SBP and SECP, differ with the requirements of the IFRS Accounting Standards or IFAS, the requirements of the Banking Companies Ordinance, 1962, the Companies Act, 2017 and the said directives and notifications, 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 2025.
  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 has deferred the applicability of IFAS 3 'Profit and Loss Sharing on Deposits' for Islamic Banking Institutions (IBIs) through BPRD Circular No. 4 of 2015 dated 25 February 2015 till further instructions. The disclosures requirements relating to annual and interim financial statements have been based on a format prescribed by SBP vide BPRD Circular No. 02 dated 09 February 2023.
  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. 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 instructions 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 recognised as income.
      Revenue from Islamic products would have increased by Rs. 447.970 million, if IFRS 9 had been adopted in its entirety.
  7. Standards, interpretations of 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 implementation of Effective Interest Rate (EIR) as explained in note 4.1.
  8. Standards, interpretations of and amendments to published approved accounting standards that are not yet effective
    There are certain new standards and interpretations of and amendments to existing accounting and reporting standards that are not effective in the current period. These are considered not to have any significant impact on these unconsolidated condensed interim financial statements.
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 2025.
MATERIAL ACCOUNTING POLICY INFORMATION
The material accounting policy information related to 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 2025, except as disclosed in note 4.1 below.
1. IFRS 9 - 'Financial Instruments' - Effective Interest Rate (EIR)
  SBP instructed the banks to record income and expenses at Effective Interest Rate (EIR) with effect from 01 January 2026. During the period, the Bank has implemented EIR for recognition of profit / return earned and profit / return expensed in unconsolidated condensed statement of profit and loss account. The Bank has taken the impact of EIR to equity at the beginning of the current accounting period as allowed under modified retrospective approach for restatement permitted under IFRS 9. The impact of application as at 01 January 2026 amounting to Rs. 31.065 million, has been recorded as an adjustment to the opening equity.
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 2025.

		(Un-audited)	(Audited)
Note		31 March 2026	31 December 2025
(Rupees in '000)
6. CASH AND BALANCES WITH TREASURY BANKS
In hand:
Local currency		78,183,459		46,877,386
Foreign currencies		5,905,184		3,569,481
		84,088,643		50,446,867
With State Bank of Pakistan in:
Local currency current accounts		68,521,583		95,535,579
Local currency current accounts - Islamic Banking Foreign currency deposit accounts Cash reserve account		12,114,273 5,736,600		16,529,627 5,854,573
Cash reserve / special cash reserve account - Islamic Banking		1,298,901		1,303,412
Special cash reserve account		11,473,201		11,709,146
Local collection account		382,316		430,332
With National Bank of Pakistan in:		99,526,874		131,362,669
Local currency current accounts		11,253,786		7,567,621
Prize bonds		68,961		89,756
Cash and balances with treasury banks		194,938,264		189,466,913
7. BALANCES WITH OTHER BANKS
In Pakistan:
In current accounts		354,391		71,897
In deposit accounts		9,630		9,481
		364,021		81,378
Outside Pakistan:
In current accounts		8,954,089		7,171,133
In deposit accounts		13,216		76,018
		8,967,305		7,247,151
Less: credit loss allowance against		9,331,326		7,328,529
balances with other banks	7.1	(75,111)		(131,979)
Balances with other banks - net of credit loss allowance	9,256,215		7,196,550

(Un-audited) (Audited) 31 March 31 December

Note 2026 2025

(Rupees in '000)

7.1	Credit loss allowance
	Opening balance	131,979	947
	Charge / (reversal):
	Charge for the period / year	5,199	131,473
	Reversal for the period / year	(62,066)	(443)
		(56,867)	131,030
	Foreign exchange adjustments	(1)	2
	Closing balance	75,111	131,979

8.	LENDINGS TO FINANCIAL INSTITUTIONS
	In local currency:
	Musharaka placements		-	18,000,000
	Repurchase agreement lendings (reverse repo)		60,893,753	6,457,210
			60,893,753	24,457,210
	Less: credit loss allowance against lendings to financial institutions	8.1	(8,221)	(3,302)

Lendings to financial institutions - net of

credit loss allowance 60,885,532 24,453,908

8.1 Lendings to Financial Institutions - Particulars of credit loss allowance

Credit loss allowance - Stage 1
Opening balance	3,302	5,258
New financial assets originated or purchased	8,221	1,952
Financial assets that have been derecognised	(3,302)	(3,908)
	4,919	(1,956)
Closing balance	8,221	3,302

9. INVESTMENTS

31 March 2026 (Un-audited) 31 December 2025 (Audited)

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

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

(Rupees in '000)

9.1	Investments by type: Debt instruments Amortised Cost Federal Government Securities	482,174,049	(14,768)	-	482,159,281	444,132,281	(14,547)	-	444,117,734
	FVOCI
	Federal Government Securities	1,736,411,168	(988,532)	(12,166,540)	1,723,256,096	1,520,897,635	(1,380,069)	22,682,991	1,542,200,557
	Non Government Debt Securities	6,783,690	(782,600)	(14,478)	5,986,612	7,456,941	(783,075)	(33,959 )	6,639,907
	Foreign Securities	7,145,107	(1,972,614)	1,147,137	6,319,630	7,165,210	(2,000,953)	1,323,895	6,488,152
	FVPL	1,750,339,965	(3,743,746)	(11,033,881)	1,735,562,338	1,535,519,786	(4,164,097)	23,972,927	1,555,328,616
	Federal Government Securities	1,312,109	-	-	1,312,109	886,072	-	-	886,072
	Equity instruments
	FVOCI - Non-reclassifiable
	Shares
	- Listed Company	182,690	-	440,039	622,729	182,690	-	664,594	847,284
	- Unlisted Companies	154,236	-	3,790,270	3,944,506	154,236	-	4,133,774	4,288,010
		336,926	-	4,230,309	4,567,235	336,926	-	4,798,368	5,135,294
	Investments mandatorily classified
	/ measured at FVPL
	Units of Mutual Funds	4,922,672	-	(839,255)	4,083,417	8,910,944	-	(283,430 )	8,627,514
	Associates	4,501,651	-	-	4,501,651	10,501,651	-	-	10,501,651
	Subsidiaries	3,883,250	-	-	3,883,250	3,883,250	-	-	3,883,250
	Total Investments	2,247,470,622	(3,758,514)	(7,642,827)	2,236,069,281	2,004,170,910	(4,178,644)	28,487,865	2,028,480,131
									17

9.1.1 Investments given as collateral (Un-audited) (Audited) 31 March 31 December 2026 2025 (Rupees in '000)

Pakistan Investment Bonds 342,667,700 163,763,100

Credit loss allowance
Opening balance 4,178,644 7,493,416
298,099
(3,663,063)

10,362

(418,735)

Charge / (reversal):

Charge for the period / year Reversal for the period / year

(408,373) (3,364,964)

Foreign exchange adjustments (11,757) 50,192

Closing balance 3,758,514 4,178,644

Particulars of credit loss allowance against debt securities 31 March 2026 (Un-audited) 31 December 2025 (Audited) Outstanding Credit loss Outstanding Credit loss amount allowance amount allowance (Rupees in '000)

Domestic
Performing	Stage 1	4,137,775	976	4,280,895	1,127
Under-performing	Stage 2	1,865,915	1,624	2,396,046	1,948
Non-performing - loss	Stage 3	780,000	780,000	780,000	780,000
		6,783,690	782,600	7,456,941	783,075
Overseas
Performing	Stage 1	5,613,697	29,675	5,630,003	30,305
Under-performing	Stage 2	17,920,625	2,946,239	17,993,474	3,365,264
		23,534,322	2,975,914	23,623,477	3,395,569
Total		30,318,012	3,758,514	31,080,418	4,178,644

Under the IFRS 9 Application instructions, the Bank is not required to compute ECL on Government Securities and on Government guaranteed credit exposures in local currency.
The market value of securities classified as amortised cost at 31 March 2026 amounted to Rs. 484,325 million (31 December 2025: Rs. 454,685 million).
18

Summary of financial information of subsidiaries and associates

31 March 2026 (Un-audited)

	Percentage	Assets	Liabilities	Revenue	Profit after	Total
	of holding				taxation	comprehensive
						(loss) / income
Subsidiaries				(Rupees in '000)
AL Habib Capital Markets (Private) Limited	66.67%	1,279,135	711,727	105,167	22,423	(11,928)
AL Habib Asset Management Limited	100%	5,122,378	311,083	569,256	305,860	305,860
AL Habib Exchange Company (Private) Limited	100%	3,273,490	58,121	127,706	19,886	19,886
Associates
AL Habib Money Market Fund	0.81%	80,686,081	414,675	1,982,578	1,835,588	1,835,588
AL Habib Islamic Cash Fund	0.34%	31,890,825	194,124	708,944	688,856	688,856
AL Habib Islamic Savings Fund	0.55%	19,613,112	237,578	415,540	372,723	372,723
AL Habib Income Fund	2.19%	19,421,256	95,747	613,725	577,402	577,402
AL Habib Cash Fund	4.15%	87,994,181	198,208	1,954,874	1,801,581	1,801,581
AL Habib Islamic Income Fund	0.15%	18,203,365	272,067	303,351	270,743	270,743

Subsidiaries and associate funds are incorporated in Pakistan. All associate funds are managed by AL Habib Asset Management Limited (the subsidiary company).
The above information is based on financial statements as on 31 March 2026.

10.	ADVANCES
		Performing		Non-Performing			Total
		(Un-audited)	(Audited)		(Un-audited)	(Audited)	(Un-audited)	(Audited)
		31 March	31 December		31 March	31 December	31 March	31 December
		2026	2025		2026	2025	2026	2025
				(Rupees in '000)
	Loans, cash credits, running finances, etc.	610,828,474	591,104,648		34,103,430	34,009,817	644,931,904	625,114,465
	Islamic financing and related assets	166,991,816	153,585,947		1,640,613	1,385,692	168,632,429	154,971,639
	Bills discounted and purchased	59,000,451	58,984,097		388,007	389,355	59,388,458	59,373,452
	Advances - gross	836,820,741	803,674,692		36,132,050	35,784,864	872,952,791	839,459,556
	Less: credit loss allowance
	- Stage 1	7,827,490	7,415,134		-	-	7,827,490	7,415,134
	- Stage 2	7,123,105	6,947,822		-	-	7,123,105	6,947,822
	- Stage 3	-	-		33,795,037	33,046,205	33,795,037	33,046,205
		14,950,595	14,362,956		33,795,037	33,046,205	48,745,632	47,409,161
	Advances - net of credit loss allowance	821,870,146	789,311,736		2,337,013	2,738,659	824,207,159	792,050,395
								20

Particulars of advances (Gross) (Un-audited) (Audited) 31 March 31 December 2026 2025 (Rupees in '000)

In local currency	751,433,262	719,742,681
In foreign currencies	121,519,529	119,716,875
	872,952,791	839,459,556

Advances include Rs. 36,132.050 million (31 December 2025: Rs. 35,784.864 million) which have been placed under non-performing status as detailed below:

31 March 2026 (Un-audited) 31 December 2025 (Audited)

Category of classification - Stage 3	Non performing	Credit loss		Non performing	Credit loss
	loans	allowance		loans	allowance

(Rupees in '000) Domestic

Other assets especially mentioned (OAEM)	440,291	281,804	259,898	177,151
Substandard	1,988,344	1,499,702	2,932,248	2,204,657
Doubtful	2,560,306	1,930,822	3,361,018	2,488,492
Loss	25,795,998	24,735,598	23,866,013	22,810,218
Overseas	30,784,939	28,447,926	30,419,177	27,680,518
Loss	5,347,111	5,347,111	5,365,687	5,365,687
Total	36,132,050	33,795,037	35,784,864	33,046,205

Particulars of credit loss allowance against advances
31 March 2026 (Un-audited) 31 December 2025 (Audited)
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
(Rupees in '000)
Opening balance 7,415,134 6,947,822 33,046,205 47,409,161 7,170,325 8,468,402 32,823,742 48,462,469
17,599,080
(16,511,244)

5,653,822

(3,278,707)

5,531,471

(7,055,854)

6,413,787

(6,176,683)

9,799,786

(8,442,886)

1,272,244

(503,421 )

3,907,846

(3,732,563)

4,619,696

(4,206,902)

Charge / (reversal):

Charge for the period / year Reversal for the period / year

412,794 175,283 768,823 1,356,900 237,104 (1,524,383) 2,375,115 1,087,836

Amounts written off - - - - - - (64,492) (64,492)

Amounts charged off - - - - - - (2,136,310) (2,136,310) Foreign exchange adjustments (438) - (19,991 ) (20,429) 7,705 3,803 48,150 59,658

Closing balance 7,827,490 7,123,105 33,795,037 48,745,632 7,415,134 6,947,822 33,046,205 47,409,161

Advances - credit loss allowance 31 March 2026 (Un-audited) 31 December 2025 (Audited)

Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total

(Rupees in '000)

Opening balance	7,415,134	6,947,822	33,046,205	47,409,161	7,170,325	8,468,402	32,823,742	48,462,469
New advances / additional charge	3,515,564	2,669,851	347,840	6,533,255	4,530,994	3,896,177	2,004,692	10,431,863
Advances derecognised / repaid / reversal	(2,755,540)	(2,090,693 )	(307,220)	(5,153,453)	(3,545,305)	(4,231,967)	(2,148,965 )	(9,926,237)
Transfer to Stage 1	440,846	(440,846 )	-	-	1,275,754	(1,246,047)	(29,707 )	-
Transfer to Stage 2	(136,917)	167,188	(30,271)	-	(266,995)	388,062	(121,067 )	-
Transfer to Stage 3	(1,217)	(42,204 )	43,421	-	(40,387)	(378,872)	419,259	-
	1,062,736	263,296	53,770	1,379,802	1,954,061	(1,572,647)	124,212	505,626

Amounts written off	- - - - - -	(64,492 )	(64,492)
Amounts charged off	- - - - - -	(2,136,310 )	(2,136,310)

Changes in risk parameters	(649,942)	(88,013 )	715,053	(22,902)	(1,716,957)	48,264	2,250,903	582,210
Foreign exchange adjustments	(438)	-	(19,991)	(20,429)	7,705	3,803	48,150	59,658
Closing balance	7,827,490	7,123,105	33,795,037	48,745,632	7,415,134	6,947,822	33,046,205	47,409,161

Performing	Stage 1	701,356,891	7,719,201	667,330,924	7,298,564
Under-performing	Stage 2	101,287,475	7,123,105	104,829,666	6,937,251
Non-performing
Other assets especially
mentioned (OAEM)	Stage 3	440,291	281,804	259,898	177,151
Substandard	Stage 3	1,988,344	1,499,702	2,932,248	2,204,657
Doubtful	Stage 3	2,560,306	1,930,822	3,361,018	2,488,492
Loss	Stage 3	25,795,998	24,735,598	23,866,013	22,810,218
		833,429,305	43,290,232	802,579,767	41,916,333
Overseas
Performing	Stage 1	34,176,375			116,570
Under-performing	Stage 2	-			10,571
Non-performing - loss Stage 3		5,347,111			5,365,687
		39,523,486	5,455,400	36,879,789	5,492,828
	Total	872,952,791	48,745,632	839,459,556	47,409,161
10.6	Charged-off non performing loans

Advances - category of classification Domestic

31 March 2026 (Un-audited) 31 December 2025 (Audited) Outstanding Credit loss Outstanding Credit loss amount allowance amount allowance (Rupees in '000)

108,289	30,856,427
-	657,675
5,347,111	5,365,687

In compliance with SBP's BPRD Circular No. 02 of 2024 dated 22 July 2024, the Bank has charged-off certain fully provisioned non-performing loans. Such charged-off do not constitute any financial relief to the borrowers, and the Bank's rights to recover the outstanding amounts remain fully intact. The details of these charged-off loans are presented below:

(Un-audited) (Audited) 31 March 31 December

Note 2026 2025

(Rupees in '000)

	Opening balance of charge-offs	2,136,310	-
	Charged-off during the period / year	-	2,153,321
	Recoveries made during the period / year	-	(20,162)
	Foreign exchange adjustments	(6,627)	3,151
	Closing balance of charge-offs	2,129,683	2,136,310
	Number of borrowers	3	3
11.	PROPERTY AND EQUIPMENT
	Capital work-in-progress	11.1 6,041,616	5,750,298
	Property and equipment	76,980,583	76,792,447
		83,022,199	82,542,745

(Un-audited)			(Audited)
31 March			31 December
2026			2025
(Rupees in '000)
11.1	Capital work-in-progress
	Civil works	2,967,510	2,817,161
	Advance payment for purchase of equipments	511,545	406,091
	Advance payment towards suppliers, contractors and property	2,506,095	2,471,547

56,466		55,499
6,041,616		5,750,298

Consultants' fee and other charges

11.2 Additions to property and equipment

The following additions have been made to property and equipment during the period:

(Un-audited) Three months period ended 31 March 31 March 2026 2025 (Rupees in '000)

	Capital work-in-progress	2,271,791	2,687,631
	Property and equipment
	Leasehold land	47,858	9,550
	Buildings on leasehold land	242,964	69,820
	Furniture and fixture	140,334	235,414
	Electrical, office and computer equipment	967,070	2,992,862
	Vehicles	485,940	516,792
	Improvements to leasehold buildings	466,757	269,919
		2,350,923	4,094,357
	Total	4,622,714	6,781,988
11.3	Disposal of property and equipment
	The net book value of property and equipment disposed
	off during the period is as follows:
Furniture and fixture		1,634	979
Electrical, office and computer equipment		548	1,028
Vehicles		3,678	2,874
Improvements to leasehold buildings		-	3,357
Total		5,860	8,238

(Un-audited) (Audited) 31 March 31 December 2026 2025 (Rupees in '000)

12. RIGHT-OF-USE ASSETS
Buildings
At 01 January,
Cost	26,221,809	21,501,002
Accumulated depreciation	(9,392,944)	(7,821,804)
Net carrying amount	16,828,865	13,679,198
Additions during the period / year	2,560,159	6,309,716
Deletions during the period / year	(24,398)	(277,059)
Depreciation charge for the period / year	(817,553)	(2,912,165)
Foreign exchange adjustments	(180)	167
Other adjustments / transfers	6,710	29,008
Net carrying amount at end of the period / year	18,553,603	16,828,865
13. INTANGIBLE ASSETS
Computer software	29,732	63,301
14. DEFERRED TAX ASSETS / (LIABILITIES)
Deductible temporary differences on
Credit loss allowance against diminution in the
value of investments	1,954,427	2,172,895
Credit loss allowance against loans and advances,
off-balance sheet, etc.	12,476,633	12,772,856
Deficit on revaluation of FVOCI investments	3,537,857	-
Unrealised net loss on fair value of refinancing	393,150	559,790
Deficit on revaluation of securities classified as FVPL	436,413	147,384
Right-of-use assets	8,085,013	7,659,886
Workers' welfare fund	4,563,800	4,395,611
Others	33,653	-
	31,480,946	27,708,422
Taxable temporary differences on
Accelerated tax depreciation	(2,981,743)	(3,291,342)
Surplus on revaluation of FVOCI investments	-	(14,961,073)
Surplus on revaluation of property and equipment	(6,100,117)	(6,157,249)
Surplus on revaluation of non-banking assets	(98,300)	(98,335)
Lease liabilities	(4,942,813)	(4,679,563)
	(14,122,973)	(29,187,562)
	17,357,973	(1,479,140)

(Un-audited) (Audited) 31 March 31 December

Note 2026 2025

(Rupees in '000)

OTHER ASSETS
Income / mark-up accrued in local currency - net 85,627,799 57,169,039 Income / mark-up accrued in foreign currencies - net 1,139,061 895,470 Advances, deposits, advance rent and other prepayments 16,435,566 15,915,979 Advance taxation 23,813,472 22,683,333
Non-banking assets acquired in satisfaction of claims 3,847,529 3,847,614 Mark to market gain on forward foreign exchange contracts 573,898 902,892 Acceptances 40,120,341 41,733,362
Stationery and stamps on hand 1,549,201 1,647,545
Receivable against home remittance 11,216,581 10,701,413
Branch adjustment account 1,339,361 6,221,325
Others 1,406,340 962,683
187,069,149 162,680,655
Less: credit loss allowance / provision against other assets 15.1 (255,339) (319,919) Other Assets - (net of credit loss allowance / provision) 186,813,810 162,360,736 Surplus on revaluation of non-banking assets
acquired in satisfaction of claims 320,286 320,353
Other Assets - total 187,134,096 162,681,089
1. Credit loss allowance / provision against other assets
  Mark-up accrued 245,912 296,098
  Modification - 14,431
  Others - receivable against consumer loans 9,427 9,390
  15.1.1 255,339 319,919
  1. Movement in credit loss allowance / provision against other assets

	Opening balance	319,919	580,371
	Foreign exchange adjustments Charge / (reversal): ECL charge for the period / year	2 131,500	37 236,575
	ECL reversal for the period / year	(181,688)	(506,516)
	Modification charge	-	14,431
	Charge for the period / year	504	3,468
	Reversal for the period / year	(467)	(2,003)
		(50,151)	(254,045)
	Modification reversal	(14,431)	(6,444)
	Closing balance	255,339	319,919
16.	CONTINGENT ASSETS

There were no contingent assets of the Bank as at 31 March 2026 (31 December 2025: Nil).

(Un-audited) (Audited) 31 March 31 December

17. BILLS PAYABLE In Pakistan	2026 (Rupees in 44,559,951	2025 '000) 59,749,478

18. BORROWINGS
Secured Borrowings from the State Bank of Pakistan under: Export refinance scheme	43,805,065	52,594,474
Renewable energy Long term financing for imported and locally manufactured plant and machinery	14,444,847 18,661,634	15,086,050 19,931,484
Modernisation of small and medium enterprises	1,050,679	1,143,308
Women entrepreneurship	104,371	127,457
Financing facility for storage of agricultural produce	816,591	578,558
Temporary economic refinance facility	20,539,622	21,779,323
Refinance facility for combating COVID-19	42,467	55,558
Repurchase agreement borrowings	342,275,033	120,111,600
	441,740,309	231,407,812
Repurchase agreement borrowings	-	43,000,000
Borrowings from financial institutions	14,655,548	14,006,155
Total secured	456,395,857	288,413,967
Unsecured Overdrawn nostro accounts	1,009,945	1,846,857
	457,405,802	290,260,824

19. DEPOSITS AND OTHER ACCOUNTS
31 March 2026 (Un-audited) 31 December 2025 (Audited) In local In foreign Total In local In foreign Total

currency currencies currency currencies

998,119,458	826,582,359
1,091,933,756	963,196,380
283,089,784	192,437,159
341,728,630	301,441,838
33,304,203	20,448,737

(Rupees in '000)

Customers
Current deposits	939,527,216	58,592,242			58,898,969	885,481,328
Savings deposits	1,041,102,441	50,831,315			51,000,729	1,014,197,109
Term deposits	214,132,676	68,957,108			69,023,162	261,460,321
Current deposits - remunerative	334,816,835	6,911,795			6,035,937	307,477,775
Others	18,493,063	14,811,140			14,894,784	35,343,521
	2,548,072,231	200,103,600	2,748,175,831	2,304,106,473	199,853,581	2,503,960,054
Financial institutions
Current deposits	8,935,608	601,614	9,537,222	12,977,278	974,028	13,951,306
Savings deposits	2,712,500	-	2,712,500	11,477,009	-	11,477,009
Term deposits	1,364,502	531,787	1,896,289	1,340,000	540,638	1,880,638
Current deposits - remunerative	32,524,557	1,547,996	34,072,553	66,547,783	1,221,903	67,769,686
Others	48,320	-	48,320	48,320	-	48,320
	45,585,487	2,681,397	48,266,884	92,390,390	2,736,569	95,126,959
	2,593,657,718	202,784,997	2,796,442,715	2,396,496,863	202,590,150	2,599,087,013

LEASE LIABILITIES (Un-audited) (Audited) 31 March 31 December 2026 2025 (Rupees in '000)

Opening balance	20,845,724	16,848,698
Additions during the period / year	2,560,159	6,309,716
Lease payments including interest	(1,485,209)	(4,588,344)
Finance charges on lease liabilities	745,421	2,641,430
Deletions during the period / year	(31,122)	(394,963)
Foreign exchange adjustments	(181)	179
Other adjustment	6,710	29,008
Closing balance	22,641,502	20,845,724

Contractual maturity of lease liabilities

Short-term lease liabilities - within one year Long-term lease liabilities	1,568,310	1,534,555
- 1 to 5 years	8,217,981	7,867,564
- 5 to 10 years	9,606,676	8,781,919
- More than 10 years	3,248,535	2,661,686
	21,073,192	19,311,169
Total	22,641,502	20,845,724

This carries average effective rate upto 13.67% (31 December 2025: 13.70%) per annum.
(Un-audited) (Audited) 31 March 31 December
Note 2026 2025
(Rupees in '000)

SUBORDINATED DEBT - Unsecured

Term Finance Certificates (TFCs) - VI	21.1	6,983,229	7,000,000
Term Finance Certificates (TFCs) - VIII	21.2	4,983,189	4,992,000
Term Finance Certificates (TFCs) - IX	21.3	7,000,000	7,000,000
Term Finance Certificates (TFCs) - X	21.4	6,991,600	6,991,600
		25,958,018	25,983,600

Term Finance Certificates - VI
Issue amount Rupees 7,000 million
Issue date December 2017
Maturity date Perpetual
Rating AA+
Profit payment frequency semi-annually
Redemption No fixed or final redemption date.
Mark-up Payable six monthly at six months KIBOR (ask side) plus 1.50% without any floor or cap.
The issuer will have full discretion over the amount and timing of profit distribution and waiver of any profit distribution or other payment will not constitute an event of default.
Call option On or after five years with prior SBP approval. As per SBP's requirement, the Bank shall not exercise call option unless the called instrument is replaced with capital of same or better quality.
Lock-in-clause No profit may be paid if such payment will result in shortfall (or increase the shortfall) in the Bank's Minimum Capital Requirement ("MCR"), Leverage Ratio ("LR") or Capital Adequacy Ratio ("CAR").
Loss absorbency clause The instrument will be subject to loss absorption and / or any other
requirements under SBP's Basel III Capital Rules. Upon the occurrence of a point of non-viability event as defined by SBP's Basel III Capital Rules, SBP may at its option, fully and permanently convert the TFCs into common shares of the Bank (subject to a cap) at a price equivalent to the market value of shares of the Bank on the date of trigger, and
/ or have them immediately written off (either partially or in full).
Term Finance Certificates - VIII
Issue amount Rupees 5,000 million
Issue date September 2021
Maturity date September 2031
Rating AAA
Profit payment frequency semi-annually
Redemption 6th - 108th month: 0.02% per each semi-annual period; 114th and 120th month: 49.82% each.
Mark-up 6 - Months KIBOR (ask side) + 0.75% per annum.
Call option On or after five years with prior SBP approval.
Lock-in-clause Neither profit nor principal may be paid if such payments will result in shortfall (or increase the shortfall) in the Bank's Minimum Capital Requirement ("MCR"), Leverage Ratio ("LR") or Capital Adequacy Ratio ("CAR").
Loss absorbency clause The instrument will be subject to loss absorption and / or any other
requirements under SBP's Basel III Capital Rules. Upon the occurrence of a point of non-viability event as defined by SBP's Basel III Capital Rules, SBP may at its option, fully and permanently convert the TFCs into common shares of the Bank (subject to a cap) at a price equivalent to the market value of shares of the Bank on the date of trigger, and
/ or have them immediately written off (either partially or in full).
Term Finance Certificates - IX
Issue amount Rupees 7,000 million
Issue date April 2022
Maturity date Perpetual
Rating AA+
Profit payment frequency semi-annually
Redemption No fixed or final redemption date.
Mark-up Payable six monthly at six months KIBOR (ask side) plus 1.65% without any floor or cap.
The issuer will have full discretion over the amount and timing of profit distribution and waiver of any profit distribution or other payment will not constitute an event of default.
Call option On or after five years with prior SBP approval. As per SBP's requirement, the Bank shall not exercise call option unless the called instrument is replaced with capital of same or better quality.
Lock-in-clause No profit may be paid if such payment will result in shortfall (or increase
the shortfall) in the Bank's Minimum Capital Requirement ("MCR"), Leverage Ratio ("LR") or Capital Adequacy Ratio ("CAR").
Loss absorbency clause The instrument will be subject to loss absorption and / or any other
requirements under SBP's Basel III Capital Rules. Upon the occurrence of a point of non-viability event as defined by SBP's Basel III Capital Rules, SBP may at its option, fully and permanently convert the TFCs into common shares of the Bank (subject to a cap) at a price equivalent to the market value of shares of the Bank on the date of trigger, and
/ or have them immediately written off (either partially or in full).
Term Finance Certificates - X

Issue amount Rupees 7,000 million

Issue date December 2022

Maturity date December 2032

Rating AAA

Profit payment frequency semi-annually

Redemption 6th - 108th month: 0.02% per each semi-annual period; 114th and 120th month: 49.82% each.

Mark-up 6 - Months KIBOR (ask side) + 1.35% per annum.

Call option On or after five years with prior SBP approval.

Lock-in-clause Neither profit nor principal may be paid if such payments will result

in shortfall (or increase the shortfall) in the Bank's Minimum Capital Requirement ("MCR"), Leverage Ratio ("LR") or Capital Adequacy Ratio ("CAR").

Loss absorbency clause The instrument will be subject to loss absorption and / or any other

requirements under SBP's Basel III Capital Rules. Upon the occurrence of a point of non-viability event as defined by SBP's Basel III Capital Rules, SBP may at its option, fully and permanently convert the TFCs into common shares of the Bank (subject to a cap) at a price equivalent to the market value of shares of the Bank on the date of trigger, and

/ or have them immediately written off (either partially or in full).

(Un-audited) (Audited) 31 March 31 December

Note 2026 2025

(Rupees in '000)

22.	OTHER LIABILITIES
	Mark-up / return / interest payable in local currency	7,898,269	5,563,150
	Mark-up / return / interest payable in foreign currencies	913,101	939,066
	Unearned commission income	3,932,254	3,801,833
	Accrued expenses	4,087,168	4,560,875
	Acceptances	40,120,341	41,733,362
	Unclaimed / dividend payable	1,477,191	1,371,065
	Mark to market loss on forward foreign exchange contracts	1,364,381	1,294,874
	Payable to defined benefit plan	4,005,047	3,567,048
	Charity payable	109,979	112,228
	Credit loss allowance against off-balance
	sheet obligations 22.1	4,893,071	4,756,981
	Security deposits against leases / ijarah	20,508,905	18,543,826
	Provision for compensated absences	2,807,145	2,638,376
	Other security deposits	1,086,142	1,062,926
	Workers' welfare fund	8,776,539	8,453,099
	Payable to SBP / NBP	7,282,478	3,396,051
	Insurance payable	756,221	651,987
	ATM switch, clearing and settlement account	14,837,334	28,831,290
	Others	3,323,590	3,811,730
		128,179,156	135,089,767

Credit loss allowance against off-balance sheet obligations

Opening balance	4,756,981	4,742,981
Charge / (reversal):
Charge for the period / year	1,882,270	2,697,591
Reversal for the period / year	(1,746,310)	(2,684,972)
	135,960	12,619
Foreign exchange adjustments	130	1,381
Closing balance	4,893,071	4,756,981

(Un-audited) (Audited) 31 March 31 December

Note 2026 2025

(Rupees in '000)

SURPLUS ON REVALUATION OF ASSETS
Surplus / (deficit) on revaluation of:
- Securities measured at FVOCI - debt 9.1
- Securities measured at FVOCI - equity 9.1
- Property and equipment
- Non-banking assets acquired in satisfaction of claims
  Deferred tax on surplus / (deficit) on revaluation of:
- Securities measured at FVOCI - debt
- Securities measured at FVOCI - equity
- Property and equipment
- Non-banking assets acquired in satisfaction of claims
CONTINGENCIES AND COMMITMENTS
(11,033,881)
4,230,309
21,599,755
320,286

23,972,927

4,798,368

21,709,624

320,353

15,116,469 50,801,272

(5,737,618)

2,199,761

6,170,494

98,300

12,465,922

2,495,151

6,227,626

98,335

2,730,937 21,287,034 12,385,532 29,514,238

Guarantees 24.1 294,590,546 276,837,359

Commitments 24.2 598,650,551 568,315,824

Other contingent liabilities 24.3.1 4,234,187 4,396,720

897,475,284 849,549,903

Guarantees:
Financial guarantees 41,190,152 38,127,822
Performance guarantees 253,400,394 238,709,537
294,590,546 276,837,359

Commitments:

Documentary credits and short-term trade-related transactions:

- letters of credit 338,181,613 320,900,787

Commitments in respect of:

forward foreign exchange contracts 24.2.1 229,470,684 217,916,938
- forward lending 24.2.2 27,703,299 26,364,468
Commitments for acquisition of:
operating property and equipment 3,294,955 3,133,631

598,650,551 568,315,824

Commitments in respect of forward foreign exchange contracts (Un-audited) (Audited) 31 March 31 December 2026 2025 (Rupees in '000)

Purchase	146,280,269	147,981,083
Sale	83,190,415	69,935,855
	229,470,684	217,916,938

The maturities of above contracts are spread over the periods upto one year.

Commitments in respect of forward lending 27,703,299 26,364,468
These represent commitments that are irrevocable because they cannot be withdrawn at the discretion of the Bank without the risk of incurring significant penalty or expense.
(Un-audited) (Audited) 31 March 31 December 2026 2025 (Rupees in '000)

Other contingent liabilities
1. Claims against the Bank not acknowledged as debts 4,234,187 4,396,720
2. Tax related contingent liabilities
  There is no material change in Bank's tax contingencies as disclosed in note 24.3.2 to the annual financial statements for the year ended 31 December 2025, except for following:
  - For Tax Years 2020 (Accounting Year 2019), Appellate Tribunal Inland Revenue (ATIR) has finalised the order in favour of the Bank.
  - For Tax Year 2025 (Accounting Year 2024), Additional Commissioner Inland Revenue (ACIR) has finalised the order by disallowing certain expenses resulting in an impact of Rs. 2,314.231 million. The Bank has filed an appeal before Appellate Tribunal Inland Revenue against the above mentioned order.
    The management, based on the opinion of its tax advisor, is confident about the favourable outcome of the above matters.

DERIVATIVE INSTRUMENTS
1. Product analysis

31 March 2026 (Un-audited) Contracts Swap Total

Counter parties Notional principal			Mark to market gain / (loss)		Notional principal	Mark to market gain / (loss)		Notional principal	Mark to market gain / (loss)
(Rupees in '000) Banks
Hedging	12,462,581		35,174	99,834,305	82,806	112,296,886		117,980
Other Entities Hedging	117,173,798		(908,463)	-	-	117,173,798		(908,463)
Total
Hedging	129,636,379		(873,289)	99,834,305	82,806	229,470,684		(790,483)
				31 December 2025 (Audited)
		Contracts		Swap				Total
	Notional	Mark to market		Notional Mark to market			Notional	Mark to market
	principal	gain / (loss)		principal gain / (loss)			principal	gain / (loss)
				(Rupees in '000)
Banks Hedging	12,249,199	34,031		80,066,226 541,920			92,315,425	575,951
Other Entities Hedging	125,601,513	(967,933)		- -			25,601,513 (967,933)
Total
Hedging 137,850,712			(933,902)	80,066,226	541,920	217,916,938		(391,982)

25.2 Maturity analysis 31 March 2026 (Un-audited) Number of Notional Mark to market contracts principal

			Negative (Rupees in '000)	Positive	Net
Upto 1 month	355	93,705,483	(373,433)	280,008	(93,425)
1 to 3 months	734	65,484,748	(647,615)	149,371	(498,244)
3 to 6 months	770	58,350,341	(327,128)	88,329	(238,799)
Over 6 months to 1 year	103	11,930,112	(16,205)	56,190	39,985
	1,962	229,470,684 (1,364,381) 573,898 31 December 2025 (Audited)			(790,483)
Number of		Notional	Mark to market
contracts		principal
			Negative	Positive	Net
			(Rupees in '000)
Upto 1 month	395	66,673,893	(324,252)	221,183	(103,069)
1 to 3 months	766	77,853,398	(660,555)	434,490	(226,065)
3 to 6 months	829	58,737,510	(296,826)	142,319	(154,507)
Over 6 months to 1 year	104	14,652,137	(13,241)	104,900	91,659

2,094 217,916,938 (1,294,874) 902,892 (391,982)

(Un-audited) Three months period ended 31 March 31 March 2026 2025 (Rupees in '000)

26. MARK-UP / RETURN / INTEREST EARNED
Loans and advances	19,689,698	25,812,328
Investments	62,372,062	66,765,684
Lendings to financial institutions	183,941	112,669
Deposits with financial institutions	139,075	128,066
Securities purchased under resale agreements	143,593	68,322
	82,528,369	92,887,069
26.1 Interest income recognised on:
Financial assets measured at: - Amortised Cost	16,151,815	15,717,752
- FVOCI	48,076,711	52,909,453
- FVPL	15,866	40,635
- Cost	18,283,977	24,219,229
	82,528,369	92,887,069

MARK-UP / RETURN / INTEREST EXPENSED (Un-audited) Three months period ended 31 March 31 March
Note 2026 2025
(Rupees in '000)
Deposits 36,069,926 38,556,705
Borrowings 922,671 1,913,098
Subordinated debt 786,440 931,003
Cost of foreign currency swaps against
deposits / borrowings 1,502,894 986,811
Repurchase agreement borrowings 9,931,085 16,330,105
Finance charges on lease liabilities 745,421 613,137
49,958,437 59,330,859
FEE AND COMMISSION INCOME
Branch banking customer fees 786,199 699,551
Investment banking fees 43,435 16,678
Consumer finance related fees 21,320 16,049 Card related fees (debit and credit cards) 1,893,581 1,527,642 Credit related fees 92,499 76,887
Commission on trade 1,770,995 1,825,160
Commission on guarantees 336,353 280,656
Commission on cash management 59,034 66,049
Commission on home remittances 9,104 939,476 Others 29,838 10,487
5,042,358 5,458,635
LOSS ON SECURITIES - NET
Realised gain 29.1 670,010 22,320
Unrealised loss - measured at FVPL 9.1 (839,255) (266,775)
(169,245) (244,455)
1. Realised gain / (loss) on:
  Federal Government Securities 1,140 22,320
  Units of Mutual Funds (85,277) -
  Associates - Mutual Funds 754,147 -
  670,010 22,320
2. Net (loss) / gain on financial assets measured:
  Net loss on investments in securities mandatorily
  measured at FVPL (924,532) (266,775)
  Net gain on financial assets measured at FVOCI 1,140 22,320
  Gain on investments in associates 754,147 -
  (169,245) (244,455)
OTHER INCOME
Rent on property 9,953 7,948
Gain on sale of property and equipment - net 215,781 309,537
Gain on termination of leases - net 6,725 28,801
232,459 346,286
OPERATING EXPENSES

(Un-audited) Three months period ended 31 March 31 March 2026 2025 (Rupees in '000) Total compensation expenses 11,155,505 10,315,246

54,151

669

618,520

669,207

222,680

462,924

152

670,405

85,882

5,406

817,571

787,620

251,060

513,685

152

817,553

Property expenses Rent and taxes Insurance

Utilities cost

Security (including guards)

Repair and maintenance (including janitorial charges) Depreciation

Depreciation on non-banking assets acquired in satisfaction of claims

Depreciation on right-of-use assets

Information technology expenses

Software maintenance Hardware maintenance Depreciation Amortisation

Network charges

Other operating expenses

Directors' fees and allowances

Fees and allowances to shariah board Insurance

Legal and professional charges Outsourced services costs Travelling and conveyance NIFT and other clearing charges Depreciation

Repair and maintenance Training and development Postage and courier charges Communication

Stationery and printing

Marketing, advertisement and publicity Donations

Auditors' remuneration Commission and brokerage

Entertainment and staff refreshment Vehicle running expenses Subscriptions and publications CNIC verification charges

Security charges Others

3,278,929 2,698,708

1,464,697

257,195

557,895

33,569

101,418

804,324

218,236

441,324

23,559

147,063

2,414,774 1,634,506

17,980

12,676

230,398

163,825

994,918

224,794

98,604

1,085,347

714,507

33,331

129,632

735,310

387,176

313,275

147,400

4,289

496,888

207,738

54,271

89,167

96,350

270,570

318,911

12,130

10,756

228,988

108,966

938,402

176,789

78,510

899,982

766,249

44,536

109,768

785,796

605,977

477,878

87,400

5,036

541,962

202,942

44,760

82,194

115,108

258,732

195,297

6,827,357 6,778,158 23,676,565 21,426,618 (Un-audited) Three months period ended 31 March 31 March

Note 2026 2025

(Rupees in '000)

32. OTHER CHARGES
Penalties imposed by the State Bank of Pakistan		3,267	6,941
33. CREDIT LOSS ALLOWANCE AND WRITE-OFFS - NET
(Reversal) / charge against balances with other banks	7.1	(56,867)	4,629
Charge / (reversal) against lendings to financial institutions	8.1	4,919	(2,434)
Reversal against investments	9.2	(408,373)	(947,633)
Charge / (reversal) against loans and advances - net	10.3	1,356,900	(252,300)
Reversal against other assets - net	15.1.1	(50,151)	(91,601)
Charge against off-balance sheet items - net	22.1	135,960	132,479
		982,388	(1,156,860)
34. TAXATION
Current		8,241,259	10,734,021
Deferred		(304,531)	(350,596)
		7,936,728	10,383,425
35. BASIC AND DILUTED EARNINGS PER SHARE
Profit for the period		7,088,194	10,213,273

(Number)

Weighted average number of ordinary shares 1,111,425,416 1,111,425,416

(Rupees)

Basic and diluted earnings per share 6.38 9.19

FAIR VALUE MEASUREMENTS
Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties in an arm's length transaction.
1. Fair value of financial assets

The Bank measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements:

Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Fair value measurements using input for the assets or liabilities that are not based on observable market data (i.e. unobservable inputs).

There were no transfers between levels 1 and 2 during the period / year.

The table below analyses financial instruments measured at the end of the reporting period by the level in the fair value hierarchy into which the fair value measurement is categorised:

31 March 2026 (Un-audited)

On balance sheet financial instruments	Level 1	Level 2 (Rupees in	Level 3 '000)	Total
Financial assets - measured at fair value Investments Federal Government Securities	-	1,724,568,205	-	1,724,568,205
Shares	622,729	155,898	3,788,608	4,567,235
Non Government Debt Securities	-	5,986,612	-	5,986,612
Foreign Securities	-	6,319,630	-	6,319,630
Units of Mutual Funds	-	4,083,417	-	4,083,417

Financial assets - disclosed but not measured at fair value

Investments

Federal Government Securities - 484,325,015 - 484,325,015

Off-balance sheet financial instruments - measured at fair value

Forward purchase of foreign exchange contracts		-	145,030,320	-	145,030,320
Forward sale of foreign exchange contracts		-	83,649,881	-	83,649,881
31 December 2025 (Audited)
	Level 1		Level 2	Level 3	Total
			(Rupees in	'000)
On balance sheet financial instruments
Financial assets - measured at fair value
Investments
Federal Government Securities	-		1,543,086,629	-	1,543,086,629
Shares	847,284		160,110	4,127,900	5,135,294
Non Government Debt Securities	-		6,639,907	-	6,639,907
Foreign Securities	-		6,488,152	-	6,488,152
Units of Mutual Funds	-		8,627,514	-	8,627,514
Financial assets - disclosed but not
measured at fair value Investments
Federal Government Securities	-		454,684,915	-	454,684,915
Off-balance sheet financial instruments - measured at fair value
Forward purchase of foreign exchange contracts		-	147,047,803	-	147,047,803
Forward sale of foreign exchange contracts		-	70,477,153	-	70,477,153
						39

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