BAHL-Transmission of Quarterly Report for the period ended September 30, 2025

Bank AL Habib Limited

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 56

Mr. Tariq Iqbal Khan, Member of the Board, Chairman Human Resource & Remuneration Committee, and member Audit Committee, resigned in September 2025

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 period ended September 30, 2025.

Alhamdolillah, during the period under review, the performance of the Bank continued to be satisfactory. The deposits increased to Rs. 2.50 trillion as compared to Rs. 2.28 trillion on December 31, 2024. In the same period, advances decreased to Rs. 906.6 billion from Rs. 910.9 billion, while investments decreased to Rs. 1.85 trillion from Rs. 1.92 trillion. The pre-tax profit of the Bank for the nine months period ended September 30, 2025, was Rs. 53.50 billion as compared to Rs. 63.23 billion during the corresponding period last year. The profit after tax for the period ended September 30, 2025, was Rs. 25.39 billion compared with Rs. 33.15 billion during 2024.

The Board of Directors, in its meeting held on October 23, 2025, has declared 3rd interim cash dividend of Rs. 3.50 per share i.e. 35%, in addition to 70% already paid, bringing the total cash dividend to 105% for the nine months period ended September 30, 2025.

By the Grace of Allah, the Bank now has a network of 1,298 offices, comprising 1,295 branches, and 3 Representative Offices. Our branch network includes 350 Islamic Banking Branches and 2 Overseas Branches. Continuing with our branch expansion policy, the Bank intends to open more branches during the year 2025.

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: October 23, 2025

105

35

3.50

33.15

25.39 63.23

1.92

1.85

53.50

906.6

2.50

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

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 / (deficit) 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 4,818,360 126,500 540,000 1,130,027 16,433,449 200,858 72,595,629 129,659,089

Effect of adoption of IFRS 9 (net of tax) - - - - - (1,773,407 ) - - (3,510,353 ) (5,283,760) Profit after taxation for the nine months period ended 30 September 2024 - restated - - - - - - - - 33,145,393 33,145,393

(134,749 ) -

-

-

-

-

-

-

-

-

-

-

-

-

-

(134,749)

8,081,367

(475,897)

309,511

(31,013)

-

-

-

-

-

-

-

-

-(31,013 )

-

-

-309,511 -

-8,081,367

(475,897 ) -

-

-

-

-

-

-

-

-

-

-

-

Other comprehensive income for the nine months period ended 30 September 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 - - (134,749 ) - - 7,605,470 309,511 (31,013 ) - 7,749,219 Transfer to statutory reserve - 3,314,539 - - - - - - (3,314,539 ) -Loss on sale of equity securities - FVOCI - - - - - 826,620 - - (826,620 ) -

Transfer from surplus on revaluation of assets to

unappropriated profit - net of tax - - - - - - (165,991 ) (509 ) 166,500 -

-

-

-

-

-

-

-

-

-

(5,557,127)

(3,889,989)

(3,889,989)

(5,557,127 )

(3,889,989 )

(3,889,989 )

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

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 Interim cash dividend (Rs. 3.5 per share) - June 2024

- - - - - - - - (13,337,105 ) (13,337,105)

Balance as at 30 September 2024 - unaudited - restated 11,114,254 26,014,551 4,683,611 126,500 540,000 7,788,710 16,576,969 169,336 84,918,905 151,932,836

Profit after taxation for the three months period ended 31 December 2024 - - - - - - - - 6,716,794 6,716,794

Other comprehensive income for the three months period 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 - - 14,014 - - (1,919,484 ) (924,079 ) (3,281 ) 61,809 (2.771.021)

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 - 671,680 - - - - - - (671,680 ) -

Transfer from surplus on revaluation of assets to

unappropriated profit - net of tax - - - - - - (83,956 ) 8 83,948 -

Transaction with owners, recorded directly in equity

Interim cash dividend (Rs. 3.5 per share) - September 2024 - -00 - - - - - - (3,889,989 ) (3,889,989 )

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 nine months period ended 30 September 2025 - -00 - - - - - - 25,393,030 25,393,030

61,395 -

-

-

-

-00

-00

-00

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-124,049 -

-2,700,132

86,871 -

-

-

-

-

-

-

-

-

-

-741

-

-

-

-

-

61,395

2,700,132

86,871

124,049

741

Other comprehensive income for the nine months period ended 30 September 2025 - 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 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 - -00 61,395 - - 2,787,003 124,049 741 - 2,973,188 Transfer to statutory reserve - 2,539,303 - - - - - - (2,539,303 ) -Loss on sale of equity securities - FVOCI - -00 - - - 11,390 - - (11,390 ) -Transfer from surplus on revaluation of assets to unappropriated profit - net of tax - -00 - - - - (158,211 ) (97 ) 158,308 -

-

-

-

-00

-00

-00

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(7,224,265 )

(3,889,989 )

(3,889,989 )

(7,224,265 )

(3,889,989 )

(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 Interim cash dividend (Rs. 3.5 per share) - June 2025

- - - - - - - - (15,004,243 ) (15,004,243 )

Balance as at 30 September 2025 - unaudited 11,114,254 29,225,534 4,759,020 126,500 540,000 9,468,369 15,534,772 166,707 95,242,522 166,177,678

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 September 30 September

2025 2024

(Rupees in '000)

CASH FLOW FROM OPERATING ACTIVITIES (Restated)

Profit before taxation 53,503,523 63,232,837

Less: dividend income (996,122 ) (867,949 )

52,507,401 62,364,888

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 (gain) / loss measured at FVPL Charge for defined benefit plan

Charge for compensated absences

(Increase) / decrease in operating assets

Lendings to financial institutions Securities classified as FVPL Advances

Other assets (excluding advance taxation and markup receivable)

(Decrease) / increase in operating liabilities

Bills payable Borrowings

Deposits and other accounts

Other liabilities (excluding markup payable)

(99,316,182 )

5,608,890

2,120,045

132,610

1,091,909

(2,199,596 )

(641,678 )

(102,374 )

(660,016 )

945,000

237,565

(117,404,739 )

4,037,208

1,821,307

141,444

1,412,504

11,874,577

(834,455 )

(58,345 )

253,672

900,000

317,717

(92,783,827 ) (97,539,110 )

(40,276,426 ) (35,174,222 )

(15,467,874 )

19,654

3,254,096

(13,263,113 )

1,649,716

2,708,139

82,071,183

4,733,909

(25,457,237 ) 91,162,947

(11,935,681 )

(253,471,011 )

219,012,090

(10,668,726 )

(18,907,494 )

(11,665,541 )

288,271,139

10,823,210

(57,063,328 ) 268,521,314

(122,796,991 ) 324,510,039

Mark-up / return / interest received 243,136,783 306,671,776

Mark-up / return / interest paid (158,506,331 ) (243,609,686 )

Income tax paid (44,161,665 ) (27,694,858 )

Net cash (used in) / generated from operating activities (82,328,204 ) 359,877,271

(791,797 )

90,799,553

-(1,426,998 )

996,122

(11,842,128 )

665,006

61,395

20,775,171

(314,979,091 )

(3,000,000 ) -

878,996

(9,379,702 )

806,886

(134,749 )

CASH FLOW FROM INVESTING ACTIVITIES

Net investments in amortised cost securities

Net investments in securities classified as FVOCI Net investments in subsidiaries

Net investments in associates 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

Net cash generated from / (used in) investing activities 78,461,153 (305,032,489 )

(3,400 )

(14,794,866 )

(3,352,269 )

(3,995,400 )

(13,150,218 )

(3,780,564 )

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 (18,150,535 ) (20,926,182 )

(Decrease) / increase in cash and cash equivalents (22,017,586 ) 33,918,600

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

Cash and cash equivalents at end of the period 183,169,999 181,120,886

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 1,295 branches (31 December 2024: 1,207

   branches), NIL 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 350 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 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 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. 513.985 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 securities 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 4.2 Subsidised Loans and Borrowings	26,333

      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 nine months period ended 30 September 2024, presented in the unconsolidated condensed interim statement of profit and loss for the nine months period ended 30 September 2025, have been restated as summarised:

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

      Mark-up / return / interest earned 2,145,065 Impact of subsidised loans and staff financing Mark-up / return / interest expensed 1,316,724 Impact of subsidised borrowings from SBP Operating expenses 658,990 Impact of prepaid staff cost amortisation

      Taxation 81,288 Tax impact of restatement

      Profit after taxation 88,063

      (Rupees)

      Basic and diluted earnings per share 0.08 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:

1. INVESTMENTS

   1. Investments by type: Debt instruments Amortised Cost

      Federal Government Securities Others

      FVOCI

      Federal Government Securities Non Government Debt Securities Foreign Securities

      Federal Government Securities Equity Instruments	1,133,469		-
      FVOCI - Non Reclassifiable
      Shares
      - Listed companies	182,690		-
      - Unlisted companies	154,236		-
      	336,926		-

      FVPL

      30 September 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)

      394,357,443

      -

394,357,443 (19,462) - 394,337,981 393,565,646 (855,715) - 392,709,931

1,419,521,750 (4,551,361) 17,285,975 1,432,256,364 1,510,008,493 (6,637,701) 11,908,799 1,515,279,591

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 66,368 (99,599)

Closing Balance 4,570,823 7,544,227

19

20

Performing Stage 1

Under performing Stage 2

Non performing - loss Stage 3

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-offs 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:

Note 2025 2024

Nine months period ended

Computer software - directly purchased 100,326 145,184

1. CONTINGENT ASSETS

   There were no contingent assets of the Bank as at 30 September 2025 (31 December 2024: Nil).

2. BILLS PAYABLE (Un-audited) (Audited) 30 September 31 December 2025 2024 (Rupees in '000)

   In Pakistan 40,327,362 52,263,043

3. BORROWINGS

   Secured

   59,814,459 15,936,933 21,090,980 1,292,949 131,372 647,588 22,876,065 64,688 289,534,650

   72,607,266

   17,895,611

   25,306,703

   1,259,381

   86,827

   795,240

   26,107,166

   100,001

   462,964,000

   Borrowings from the State Bank of Pakistan under: Export refinance scheme

   Renewable energy

   Long term financing for imported and locally manufactured plant and machinery

   Modernisation of small and medium enterprises Women entrepreneurship

   Financing facility for storage of agricultural produce Temporary economic refinance facility

   Refinance facility for combating COVID-19 Repurchase agreement borrowings

   411,389,684 607,122,195

   Repurchase agreement borrowings - 54,953,000

   Borrowing from other banks - 2,785,500

   Total secured 411,389,684 664,860,695

   Unsecured

   Overdrawn nostro accounts 1,763,906 2,182,518

   413,153,590 667,043,213
4. DEPOSITS AND OTHER ACCOUNTS

Current deposits - remunerative Others

Current deposits - remunerative Others

762,561,230

922,587,905

261,860,002

208,799,570

41,512,096

76,981,282 4,654,826

2,084,824,871 194,132,040

2,175,247 -

526,460

1,953,119 -

16,114,493

22,803,962

793,000

37,231,817

38,010

57,423,924

45,898,830

61,604,086

4,207,345

20,343,029

705,137,306

876,689,075

200,255,916

204,592,225

21,169,067

2,197,320,803

18,289,740

22,803,962

1,319,460

39,184,936

38,010

81,636,108

2,278,956,911

Note 2025 2024

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).