Bank Of KhyberPSX: BOK

Transmission of Financial Statement for the Half Year ended 30.06.2025

Aug 29, 2025 at 11:19 AM UTC · Issued by Bank of Khyber

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2025

CONTENTS

	COPPOP6TE INFOPM6TION	1
	DIPECTOPS' PEVIEW	3
	INDEPENDENT 6UDITOP'S PEVIEW PEPOPT	5
	CONDENSED INTEPIM ST6TEMENT OF FIN6NCI6L POSITION	ð
	CONDENSED INTEPIM ST6TEMENT OF PPOFIT 6ND LOSS 6CCOUNT	7
	CONDENSED INTEPIM ST6TEMENT OF COMPPEHENSIVE INCOME	8
	CONDENSED INTEPIM ST6TEMENT OF CH6NGES IN EQUITY	e
	CONDENSED INTEPIM C6SH FLOW ST6TEMENT	10
	NOTES TO THE CONDENSED INTEPIM FIN6NCI6L ST6TEMENTS	11

COPPOP6TE INFOPM6TION

6з ot Ju⭲e 30, 2025

Board ot Directorз

Ikramullah Khan Chairman / Non-Executive Director

Amer Sultan Tareen Non-Executive Director

Abid Saar Independent Director

Syed Asad Ali Shah Independent Director

Tahir Jawaid Independent Director

Osman Asghar Khan Independent Director

Muhammed Shahid Sadiq Independent Director

Natasha Jehangir Khan Independent Director

Ma⭲agi⭲g Director / CEO

Hassan Raza

Shariah Board

Mufti Muhammad Zahid Chairman Shariah Board

Mufti Muhammad Arif Khan Member Shariah Board

Mufti Abdul Wahab Member Shariah Board

Qazi Abdul Samad Resident Shariah

Board Member (RSBM)

Board 6udit Commiee

Syed Asad Ali Shah Chairman

Amer Sultan Tareen Member

Abid Saar Member

Muhammed Shahid Sadiq Member

Osman Asghar Khan Member

Board Huma⭲ Peзource & Pemu⭲eratio⭲ Commiee

Abid Saar Chairperson

Tahir Jawaid Member

Osman Asghar Khan Member

Natasha Jehangir Khan Member

Board Piзk Ma⭲ageme⭲t Commiee

Abid Saar Chairman

Amer Sultan Tareen Member

Muhammed Shahid Sadiq Member

Managing Director Member

Board I.T Steeri⭲g Commiee

Osman Asghar Khan Chairman

Tahir Jawaid Member

Syed Asad Ali Shah Member

Natasha Jehangir Khan Member

Managing Director Member

Board Complia⭲ce Committee

Muhammed Shahid Sadiq Chairman

Secretary Finance Member

Natasha Jehangir Khan Member

Managing Director Member

Chiet Fi⭲a⭲cial Oicer

Irfan Saleem Awan

Compa⭲y Secretary

Raza Mohsin Qizilbash

Pegiзtered Otﬁce / Head Oice

The Ba⭲k ot Khyber

24 - The Mall, Peshawar Can.

UAN# 00-92-91-111 95 95 95

URL: https://www.bok.com.pk

6uditorз

M/s Pwc A.F. Ferguson & Co. Chartered Accountants

Legal 6dviзorз

M/s. Mohsin Tayebaly & Co., Karachi

Pegiзtrar a⭲d Share Pegiзtratio⭲ Oice

THK Associates (Pvt) Ltd.

Plot # 32 - C, Jami Commercial Street 2 D.H.A, Phase-VII,

Karachi-75500.

Directorз' Peview

On behalf of the Board of Directors of Bank of Khyber (The Bank or BoK), I am pleased to present the condensed interim ﬁnancial information of the Bank for the six month period ended June 30, 2025.

Fi⭲a⭲cial Highlightз

The ﬁnancial highlights of the Bank for the period under review are as follows:

Pз. I⭲ Millio⭲ 6з at Ju⭲e 30, 2025 December 31, 2024

Total Assets	537,205	477,564
Deposits	382,010	277,642
Advances (Gross)	127,765	159,624
Investments (Net)	351,703	282,767

For the зix mo⭲th period e⭲ded Ju⭲e 30, 2025 Ju⭲e 30, 2024

Proﬁt before provisions	6,576		3,589
(Reversal) / charge of provision (credit loss allowance)	(618)		108
Proﬁt before taxation	7, 194		3,481
Proﬁt after taxation	3,365		1,551
		Pupeeз
Basic and diluted earnings per share	2.91		1.34

I⭲terim Divide⭲d 6⭲⭲ou⭲ceme⭲t The Board of Directors in its meeting held on August 26, 2025, has announced an interim cash dividend of Rs. 1.50 per share for the six month period ended June 30, 2025 (For the six month period ended June 30, 2024: Nil) Pertorma⭲ce Peview

The Bank achieved a remarkable performance during the six month period whereby proﬁt after tax surged by 117% year-on-year (YoY) to Rs. 3,365 million as compared to Rs. 1, 551 million during the same period last year.

Net Markup/Interest Income for the period increased by 28% YoY to Rs. 9,845 million as a result of robust balance sheet management and successful reduction in funding costs achieved during the period. Non -markup/interest income also recorded signiﬁcant growth, rising sharply by 171% YoY to Rs. 2, 420 million (6M period ended June 30, 2024: Rs. 893 million). The main contributors in non-markup income were gain on securities, fee and commission income and foreign exchange income.

To improve the non -mark income stream, special focus is being given to trade ﬁnance, investment banking and home remiances businesses. The Bank has launched its home remiance product with the brand name of BoK Kor Pay which has received a very healthy response from our overseas KPK diaspora.

Non mark-up expenses rose by 14% YoY to Rs. 5,690 million, reﬂecting increase in employee and other administrative costs due to the impact of inﬂation and overall increase in activities of the Bank.

As a result of the strenuous recovery eLorts and prudent len ding strategy followed by the management, t he Bank achieved net reversal in provisions amounting to Rs. 618 million during the six month period under review, compared to the net provision charge of Rs. 108 million during the same period last year.

The Bank's deposit base as on June 30, 2025 stood at Rs. 382,010 million as against Rs. 277,642 million as of December 31, 2024. Gross Advances of the Bank at the half year end amounted to Rs.127,765 million while net investments stood at Rs. 351,703 million. Total assets of the Bank as of June 30, 2025 increased to Rs. 537,205 million as against Rs. 477,564 million on December 31, 2024.

Statuз ot Co⭲verзio⭲ i⭲to Iзlamic Ba⭲k During the half year ended June 30, 2025, the Bank announced initiation of the process for its conversion to a full-ﬂedged Islamic Bank. The Bank is taking all the necessary steps for achievement of this landmark initiative as per the plan. In pursuit of this goal, 36 branches have been converted from conventional to Islamic banking during the review period. Accordingly, Islamic banking branch network of the Bank has increased to 167 branches (out of the total of 246 branches) at the period end while there are 77 Islamic Banking Windows to support the conversion of conventional banking branches. It is important to highlight that number of converted branches has further increased subsequent to the period-end. Credit Pati⭲g

In June-2025, VIS Credit Rating Company Limited (VIS) upgraded the Medium to Long Term entity rating of the Bank to AA- (Double A minus) from A+ (Single A plus) which indicates high credit quality. Moreover, Short Term rating of the Bank was reaLirmed at A1 (A one).

The Pakistan Credit Rating Agency Limited (PACRA) in June 2025 reaLirmed the Medium to Long term and the Short Term entity ratings of the Bank at A+ (Single A plus) and A1 (A one) respectively.

These ratings have been assigned a stable outlook by both the ra ting companies.

Future Outlook

Going forward, the Bank will continue its emphasis on sustainable profitability, asset quality improvement and diversiﬁcation of portfolio through proactive management strategies. Special focus will be kept on enhancing asset quality while maintaining growth momentum. Moreover, improvement of service quality standards and providing state-of-the-art banking services by leveraging technology and skilled human resources remain key priorities of the management.

Furthermore, the Bank plans to grow advances acr oss all economic segments, i.e. Corporate, SMEs, Agriculture and Consumer ﬁnancing. Simultaneously, target will be to further diversify and improve the deposits composition for reduction in the funding cost of the Bank.

6ck⭲owledgme⭲tз

The Board would like to thank the Provincial Government, State Bank of Pakistan, Shareholders, regulatory authorities and all other stakeholders for their continued trust and support. We are also grateful to our valued customers for their patronage and continued conﬁdence in the Bank.

For a⭲d o⭲ behalt ot the Board ot Directorз Haззa⭲ Paza Ma⭲agi⭲g Director & CEO 6uguзt 2ð, 2025 Peзhawar

CONDENSED INTEPIM ST6TEMENT OF FIN6NCI6L POSITION 6S 6T JUNE 30, 2025

(U⭲-audited) (Audited)

Ju⭲e 30, 2025

December 31, 2024

2e,054,738	23,993,095
15,74ð,518	3,252,274
3,e11,e47	133,574
351,702,574	282,766,597
115,ð2e,121	146,881,971
4,183,474	4,293,173
1,850,1ð8	2,059,970
350,333	361,363
825,07ð	1,193,562
13,e51,080	12,628,288

Note ---- Pupeeз i⭲ ˙000 ----

6SSETS
Cash and balances with treasury banks	5
Balances with other banks	ð
Lendings to ﬁnancial institutions	7
Investments	8
Advances	e
Property and equipment	10
Right-of-use assets	11
Intangible assets	12
Deferred tax assets	13
Other assets	14
Total 6ззetз		537,205,02e	477,563,867
LI6BILITIES
Bills payable	15
Borrowings	1ð
Deposits and other accounts	17
Lease liabilities	18
Subordinated debt
Deferred tax liabilities
Other liabilities	1e
Total Liabilitieз		513,e40,e1e	455,664,648
NET 6SSETS		23,2ð4,110	21,899,219
PEPPESENTED BY Share capital	20	11,57e,3ð0	11,579,360
Reserves		5,73e,0e8	5,066,025
Surplus on revaluation of assets	21	1,ð38,40ð	1,676,698
Unappropriated proﬁt		4,307,24ð	3,577,136
		23,2ð4,110	21,899,219
CONTINGENCIES 6ND COMMITMENTS	22

2,273,340	21,951,353
108,272,134	133,531,771
382,010,434	277,641,989
2,007,75e	2,147,700
-	-
-	-
1e,377,252	20,391,835

The annexed notes 1 to 41 form an integral part of these condensed interim ﬁnancial statements.

M6N6GING DIPECTOP

CHIEF FIN6NCI6L OFFICEP

DIPECTOP DIPECTOP DIPECTOP

CONDENSED INTEPIM ST6TEMENT OF PPOFIT 6ND LOSS 6CCOUNT (UN-6UDITED) FOP THE SIX MONTH PEPIOD ENDED JUNE 30, 2025

Quarter e⭲ded Period e⭲ded

6pril 1 to Ju⭲e 30, 2025

April 1 to June 30, 2024

Ja⭲uary 1 to Ju⭲e 30, 2025

January 1 to June 30, 2024

Note

----- Pupeeз i⭲ ˙000 -----

(Restated) (Restated)

Mark-up / return / interest earned	23	14,088,548		16,862,906	27,588,830		33,879,063
Mark-up / return / interest expensed	24	e,348,813		12,757,143	17,743,484		26,195,998
Net mark-up / interest income		4,73e,735		4,105,763	e,845,34ð		7,683,065
NON M6PK-UP / INTEPEST INCOME
Fee and commission income	25	322,713		202,048	550,814		483,292
Dividend income		-		213	-		213
Foreign exchange income Income /(loss) from derivatives		20e,7e5 -		110,060 -	282,1ð2 -		337,328 -
Gain /(loss) on securities	2ð	e75,858		(768)	1,4eð,573		(768)
Net (loss)/gain on derecognition of ﬁnancial assets
measured at amortised cost	27	(41,3ð1)		(1,528)	e,ð10		(2,194)
Share of profit of associate		5,4e8		4,447	8,4ðð		9,143
Other income	28	47,730		30,380	72,513		65,712
Total non-mark-up / interest income		1,520,233		344,852	2,420,138		892,726
Total income		ð,25e,eð8		4,450,615	12,2ð5,484		8,575,791
NON M6PK-UP / INTEPEST EXPENSES
Operating expenses	2e	2,eð8,884		2,590,036	5,ð8e,358		4,986,220
Workers Welfare Fund Other charges	30	- 30		- 206	- 1ð0		-306
Total non-mark-up / interest expenses		2,eð8,e14		2,590,242	5,ð8e,518		4,986,526
PPOFIT BEFOPE CPEDIT LOSS 6LLOW6NCE		3,2e1,054		1,860,373	ð,575,eðð		3,589,265
(Reversal of) / credit loss allowance and write oLs - net	31	(500,483)		(82,025)	(ð18,472)		108,051
PPOFIT BEFOPE T6X6TION		3,7e1,537		1,942,398	7,1e4,438		3,481,214
Taxation	32	2,028,703		1,176,447	3,82e,072		1,930,515
PPOFIT 6FTEP T6X6TION		1,7ð2,834		765,951	3,3ð5,3ðð		1,550,699
			-----Pupeeз -----
Baзic a⭲d diluted ear⭲i⭲gз per зhare	33	1.52	(Restated) 0.66			2.e1	(Restated) 1.34

The annexed notes 1 to 41 form an integral part of these condensed interim ﬁnancial statements.

M6N6GING DIPECTOP

CHIEF FIN6NCI6L OFFICEP

DIPECTOP DIPECTOP DIPECTOP

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2025

Quarter e⭲ded Period e⭲ded

6pril 1 to Ju⭲e 30, 2025

April 1 to June 30, 2024

Ja⭲uary 1 to Ju⭲e 30, 2025

January 1 to June 30, 2024

----------- Pupeeз i⭲ ˙000 -----------

(Restated) (Restated)

Proﬁt atter taxatio⭲ tor the period	1,7ð2,834	765,951	3,3ð5,3ðð	1,550,699
Other comprehe⭲зive i⭲come/ (loзз)
Itemз that may be reclaззiﬁed to зtateme⭲t ot proﬁt a⭲d loзз accou⭲t
i⭲ зubзeque⭲t periodз:
Movement in surplus/ (deﬁcit) on revaluation of debt investments through FVOCI - net of tax	1,45e,585	92,711	5e8,551	(258,273)
Gain on sale of debt investments carried at FVOCI reclassiﬁed to proﬁt and loss - net of tax	(473,ð24)	-	(718,355)	-
	e85,eð1	92,711	(11e,804)	(258,273)
Itemз that will ⭲ot be reclaззiﬁed to зtateme⭲t ot proﬁt a⭲d loзз accou⭲t
i⭲ зubзeque⭲t periodз:
Movement in (deﬁcit)/ surplus on revaluation of equity investments - net of tax	(58,e21)	(1,571)	1e,47e	593
Share of surplus on revaluation of investment of associate - net of tax	-	634	1,33e	1,145
Share of remeasurement loss on deﬁned beneﬁt obligations of associate - net of tax	-	-	-	(916)
	(58,e21)	(937)	20,818	822
Total comprehe⭲зive i⭲come	2,ð8e,874	857,725	3,2ðð,380	1,293,248
The annexed notes 1 to 41 form an integral part of these condensed interim ﬁnancial statements.

__________ ______________ ___________ ___________

M6N6GING DIPECTOP

CHIEF FIN6NCI6L OFFICEP

DIPECTOP

DIPECTOP DIPECTOP

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2025

Share capital

Statutory reзerve

I⭲veзtme⭲tз

Surpluз / (deﬁcit) o⭲ revaluatio⭲ ot

Property a⭲d equipme⭲t

No⭲-ba⭲ki⭲g aззetз

U⭲appropriated proﬁt

Total

-	-	-	(258,273)
-	-	-	1,145
-		(916)	(916)
-	-	-	593

-	-	-	1,131,035
-	-	-	269
-	-	21,944	21,944
-	-	53	53
-	-	-	(58,742)
-	-	-	33,354
-	(13,520)	-	(13,520)

-	-	-	5e8,551
-	-	-	(718,355)
-	-	-	1,33e
-	-	-	1e,47e

----------------------- Pupeeз i⭲ ˙000 -----------------------

Bala⭲ce aз at December 31, 2023 (audited)	11,027,905	4,343,001	(823,221)	900,120	47,723	4,805,756	20,301,284
Impact of adoption of IFRS 9 - net of tax (note 4.1)	-	-	729,764	-	-	(1,949,528)	(1,219,764)
Bala⭲ce aз at Ja⭲uary 1, 2024 atter adoptio⭲ ot IFPS e	11,027,905	4,343,001	(93,457)	900,120	47,723	2,856,228	19,081,520
Proﬁt after taxation for the six month period ended June 30, 2024 - restated	-	-	-	-	-	1,550,699	1,550,699
Other comprehensive (loss) / income - net of tax
Movement in deﬁcit on revaluation of investments in debt instruments through FVOCI- net of tax	-	-	(258,273)
Share of surplus on revaluation of investment of associate - net of tax Share of remeasurement loss on deﬁned beneﬁt obligation of associate - net of tax Movement in surplus on revaluation of equity investments - net of tax	- - -	- - -	1,145 -593
Total other comprehensive loss - net of tax	-	-	(256,535)	-	-	(916)	(257,451)
Transfer to statutory reserve	-	310,140	-	-	-	(310,140)	-
Transfer from surplus on revaluation of non-banking asset to unappropriated proﬁt - net of tax		-	-	-	(4,034)	4,034	-
Tra⭲зactio⭲з with ow⭲erз, recorded directly i⭲ equity				-
Final cash dividend for the year ended December 31, 2023 (Rs.1.50 per share)	-	-	-	-	-	(1,654,364)	(1,654,364)
Bonus shares issued for the year ended December 31, 2023 (Rs. 0.50 per share)	551,455	-	-	-	-	(551,455)	-
Bala⭲ce aз at Ju⭲e 30, 2024 (u⭲-audited) - reзtated	11,579,360	4,653,141	(349,992)	900,120	43,689	1,894,086	18,720,404
Proﬁt after taxation for the six month period ended December 31, 2024 Other comprehensive income / (loss) - net of tax	-	-	-	-	-	2,064,422 -	2,064,422
Movement in surplus on revaluation of investments in debt instruments through FVOCI- net of tax		-	1,131,035
Share of surplus on revaluation of investments of associate - net of tax Remeasurement gain on deﬁned beneﬁt obligations - net of tax Share of remeasurement gain on deﬁned beneﬁt obligation of associate - net of tax Gain on sale of debt investments carried at FVOCI reclassiﬁed to proﬁt and loss - net of tax	- - - -	- - - -	269 - -(58,742)
Movement in surplus on revaluation of equity investments - net of tax	-	-	33,354
Movement in deﬁcit on revaluation of non-banking assets - net of tax	-	-	-
Total other comprehensive income - net of tax	-	-	1,105,916	-	(13,520)	21,997	1,114,393
Transfer to statutory reserve	-	412,884	-	-	-	(412,884)	-
Transfer from surplus on revaluation of non-banking asset to unappropriated proﬁt - net of tax	-	-	-	-	(3,557)	3,557	-
Gain on disposal of equity investments at FVOCI transferred to unappropriated proﬁt - net of tax	-	-	(5,958)	-	-	5,958	-
Bala⭲ce aз at December 31, 2024 (audited)	11,57e,3ð0	5,0ðð,025	74e,eðð	e00,120	2ð,ð12	3,577,13ð	21,8ee,21e
Impact of adoption of IFRS 9 - net of tax (note 4.1.1)	-	-	ð7,1e3	-	-	-	ð7,1e3
Bala⭲ce aз at Ja⭲uary 1, 2025 atter adoptio⭲ ot IFPS e	11,57e,3ð0	5,0ðð,025	817,15e	e00,120	2ð,ð12	3,577,13ð	21,eðð,412
Proﬁt after taxation for the six month period ended June 30, 2025	-	-	-	-	-	3,3ð5,3ðð	3,3ð5,3ðð
Other comprehensive income / (loss) - net of tax
Movement in surplus on revaluation of investments in debt instruments through FVOCI - net of tax	-	-	5e8,551
Gain on sale of debt investments carried at FVOCI reclassiﬁed to proﬁt and loss - net of tax Share of surplus on revaluation of investment of associate - net of tax Movement in surplus on revaluation of equity investments - net of tax	- - -	- - -	(718,355) 1,33e 1e,47e
Total other comprehensive loss - net of tax	-	-	(e8,e8ð)	-	-	-	(e8,e8ð)
Transfer to statutory reserve	-	ð73,073	-	-	-	(ð73,073)	-
Transfer from surplus on revaluation of non-banking asset to unappropriated proﬁt - net of tax	-	-	-	-	(2,708)	2,708	-
Gain on disposal of equity investments at FVOCI of associate transferred to unappropriated proﬁt - net of tax	-	-	(3,7e1)	-	-	3,7e1	-
Tra⭲зactio⭲з with ow⭲erз, recorded directly i⭲ equity
Final cash dividend for the year ended December 31, 2024 (Rs.1.70 per share)	-	-	-	-	-	(1,eð8,ð82)	(1,eð8,ð82)
Bala⭲ce aз at Ju⭲e 30, 2025 (u⭲-audited)	11,57e,3ð0	5,73e,0e8	714,382	e00,120	23,e04	4,307,24ð	23,2ð4,110
The annexed notes 1 to 41 form an integral part of these condensed interim ﬁnancial statements.

__________ ______________ ___________ ___________

M6N6GING DIPECTOP

CHIEF FIN6NCI6L OFFICEP

DIPECTOP

DIPECTOP DIPECTOP

CONDENSED INTEPIM C6SH FLOW ST6TEMENT (UN-6UDITED) FOP THE SIX MONTH PEPIOD ENDED JUNE 30, 2025

Ja⭲uary 1 to Ju⭲e 30, 2025

January 1 to June 30, 2024

Note ---- Pupeeз i⭲ ˙000 ----

			(Restated)
C6SH FLOW FPOM OPEP6TING 6CTIVITIES
Proﬁt before taxation		7,1e4,438	3,481,214
Less: Dividend income		-	213
		7,1e4,438	3,481,001
6djuзtme⭲tз:
Net mark-up / return / interest income		(10,04ð,0e7)	(7,895,351)
Depreciation - Property and equipment	2e	413,728	373,414
Depreciation - Non-banking assets acquired in satisfaction of claims	2e	22,35ð	20,742
Depreciation - Right-of-use assets	2e	377,1e0	354,497
Amortization	2e	42,888	39,937
(Reversal of) / credit loss allowance and write oLs - net	31	(ð18,472)	108,051
Unrealised loss on investments measured at FVPL	2ð	-	768
Gain on disposal of property and equipment - net	28	(5,330)	(8,101)
(Gain)/loss on early culmination of lease	28	(3,e04)	3,492
Finance charges on leased assets	24	200,751	212,286
Net loss/(gain) on derecognition of ﬁnancial assets	27	(e,ð10)	2,194
Unwinding of deferred cost on staff loans		74,270	72,637
Exchange loss/(gain) on cash and cash equivalents		(100,831)	26,382
Share of profit of associate		(8,4ðð)	(9,143)
		(e,ðð1,527)	(6,698,195)
		(2,4ð7,08e)	(3,217,194)
(I⭲creaзe) / decreaзe i⭲ operati⭲g aззetз
Lendings to ﬁnancial institutions		(3,7ð7,4ð1)	(15,282,040)
Securities classiﬁed as FVPL		5,402	150,041
Advances		31,e3ð,2ðe	9,852,338
Other assets (excluding mark-up receivable)		(3e5,8e5)	5,113,498
		27,778,315	(166,163)
(Decreaзe) / i⭲creaзe i⭲ operati⭲g liabilitieз
Bills payable		(1e,ð78,013)	(2,382,510)
Borrowings from ﬁnancial institutions		(25,25e,ð37)	(23,227,172)
Deposits		104,3ð8,445	29,118,676
Other liabilities (excluding current taxation and mark-up payable)		(81,018)	946,598
		5e,34e,777	4,455,592
Mark-up / interest received		2ð,4e7,ð13	34,783,966
Mark-up / interest paid		(1e,ð41,e87)	(21,406,401)
Income tax paid		(2,285,4e8)	(962,853)
Net caзh ﬂow trom operati⭲g activitieз		8e,231,131	13,486,947
C6SH FLOW FPOM INVESTING 6CTIVITIES
Net investments in amortised cost		(2,441,87e)	(355,523)
Net investments in securities classified as FVOCI		(ðð,548,e84)	(3,187,043)
Dividends received		-	213
Investments in property and equipment		(304,7e4)	(307,909)
Investments in intangible assets		(31,858)	(20,117)
Disposal of property and equipment		ð,0e5	12,182
Net caзh ﬂow uзed i⭲ i⭲veзti⭲g activitieз		(ðe,321,420)	(3,858,197)
C6SH FLOW FPOM FIN6NCING 6CTIVITIES
Payments of lease obligations against right-of-use assets		(504,17ð)	(470,548)
Dividend paid		(1,e50,3ð1)	(1,639,363)
Net caзh ﬂow uзed i⭲ ﬁ⭲a⭲ci⭲g activitieз		(2,454,537)	(2,109,911)
ELects of credit loss allowance changes on cash and cash equivalents		(118)	(518)
ELects of exchange rate changes on cash and cash equivalents		100,831	(26,382)
I⭲creaзe i⭲ caзh a⭲d caзh equivale⭲tз		17,555,887	7,491,939
Cash and cash equivalents at beginning of the period		27,245,3ðe	27,855,805
Caзh a⭲d caзh equivale⭲tз at e⭲d ot the period		44,801,25ð	35,347,744
The annexed notes 1 to 41 form an integral part of these condensed interim ﬁnancial statements.

M6N6GING DIPECTOP

CHIEF FIN6NCI6L OFFICEP

DIPECTOP DIPECTOP DIPECTOP

NOTES TO THE CONDENSED INTEPIM FIN6NCI6L ST6TEMENTS (UN-6UDITED) FOP THE SIX MONTH PEPIOD ENDED JUNE 30, 2025

ST6TUS 6ND N6TUPE OF BUSINESS
The Bank of Khyber (the Bank) was established in Pakistan under The Bank of Khyber Act, 1991 and is principally engaged in the business of commercial banking and related services. The Bank acquired the status of a scheduled bank in 1994 and is listed on the Pakistan Stock Exchange Limited. The registered ofﬁce of the Bank is situated at 24-The Mall, Peshawar Can, Peshawar. The Bank operates 246 branches including 167 Islamic banking branches (December 31, 2024: 246 branches including 131 Islamic banking branches). Pursuant to the State Bank of Pakistan's (SBP) approval dated December 31, 2024, the Bank has converted 36 of its conventional banking branches into Islamic banking branches during the period. The long term credit rating of the Bank assigned by VIS Credit Rating Company Limited and Pakistan Credit Rating Agency Limited (PACRA) are 'AA-' and 'A+' respectively and the short-term credit ratings assigned are 'A-1' (A-One) and 'A1' (A-One) respectively. The majority shares (i.e. 70.20%) of the Bank are held by Government of Khyber Pakhtunkhwa (GoKP).
The Provincial Assembly of Khyber Pakhtunkhwa has passed the Bank of Khyber (Amendment) Act, 2022. As part of the amendments, the name of Bank has been changed from "The Bank of Khyber" to "Bank of Khyber". The Bank is in the process of seeking necessary regulatory approval for the same.
B6SIS OF PPEP6P6TION

2.1

2.2

2.3

2.4

2.5

2.ð

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 the banks from their customers and immediate resale to them at appropriate proﬁt in price on deferred payment basis. The purchases and sales arising under the respective arrangements (except for Murabaha ﬁnancings accounted for under Islamic Financial Accounting Standard - 1 "Murabaha")are not reflected in these condensed interim ﬁnancial statements as such, but are restricted to the amount of facility actually utilized and the appropriate portion of profit thereon.

The Islamic banking branches of the Bank have complied with the requirements as set out in the Islamic Financial Accounting Standards (IFAS), issued by the Institute of Chartered Accountants of Pakistan (lCAP) as are notified under the provisions of Companies Act, 2017.

The ﬁnancial results of the Islamic Banking Branches have been included in these condensed interim ﬁnancial statements for reporting purposes, after eliminating the effects of inter-branch transactions and balances. Key ﬁnancial ﬁgures of the Islamic Banking Branches are disclosed in note 38 to these condensed interim ﬁnancial statements.

These condensed interim ﬁnancial statements have been prepared under the historical cost convention except that certain class of property and equipment and non-banking assets acquired in satisfaction of claims are stated at revalued amounts; certain investments classiﬁed at fair value through proﬁt or loss and fair value through other comprehensive income are stated at fair value; staL loans are measured at fair value at initial recognition; and the recognition of certain employees benefits, lease liabilities and corresponding right of use assets at present value, as disclosed in their respective notes.

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

These condensed interim ﬁnancial statements have been presented in Pakistani Rupee, which is the Bank's functional and presentation currency. The ﬁgures have been rounded oL to the nearest thousand rupees, unless otherwise stated.

NOTES TO THE CONDENSED INTEPIM FIN6NCI6L ST6TEMENTS (UN-6UDITED) FOP THE SIX MONTH PEPIOD ENDED JUNE 30, 2025

These condensed interim ﬁnancial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim ﬁnancial reporting. The accounting and reporting standards as applicable in Pakistan for interim ﬁnancial reporting comprise of:
- International Accounting Standard (IAS) 34, 'Interim Financial Reporting', and International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as are notiﬁed under the Companies Act, 2017;
- Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan (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 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 issued by the SBP and the SECP differ with the requirements of IAS 34 or IFAS, the requirements of the Banking Companies Ordinance, 1962, the Companies Act, 2017 and the said directives, shall prevail.
The disclosures made in these condensed interim ﬁnancial statements have been limited based on the format prescribed by the SBP vide BPRD Circular Leer No. 2 dated February 9, 2023 and IAS 34. These condensed interim ﬁnancial statements do not include all the information and disclosures required in the audited annual ﬁnancial statements, and should be read in conjunction with the audited annual ﬁnancial statements for the year ended December 31, 2024.
SBP vide BSD Circular Leer No. 10, dated August 26, 2002, has deferred the applicability of International Accounting Standard (IAS) 40, Investment Property for banking companies till further instructions. Moreover, SBP vide BPRD Circular No. 4, dated February 25, 2015, has deferred the applicability of Islamic Financial Accounting Standards (IFAS) 3, Proﬁt and Loss Sharing on Deposits. Further, according to the notiﬁcation of the SECP issued vide SRO 411(I)/2008 dated April 28, 2008, International Financial Reporting Standard (IFRS) 7, 'Financial Instruments: Disclosures' has not been made applicable for banks. Accordingly, the requirements of these standards have not been considered in the preparation of these condensed interim ﬁnancial statements.
Sta⭲dardз, i⭲terpretatio⭲з ot a⭲d ame⭲dme⭲tз to publiзhed accou⭲ti⭲g a⭲d reporti⭲g зta⭲dardз that are ettective i⭲ the curre⭲t period
There are certain new and amended standards, issued by International Accounting Standards Board (IASB), interpretations and amendments that are mandatory for the Bank's accounting periods beginning on or after January 1, 2025 but are considered not to be relevant or do not have any material effect on the Bank's ﬁnancial statements and therefore are not detailed in these condensed interim ﬁnancial statements. The impact of IFRS 9 for the current period is disclosed in note 4.1.1 to these condensed interim ﬁnancial statements. Further, the comparative period has been restated to incorporate the impact of adoption of IFRS 9 as disclosed in note 4.1 to these condensed interim ﬁnancial statements.
12

NOTES TO THE CONDENSED INTEPIM FIN6NCI6L ST6TEMENTS (UN-6UDITED) FOP THE SIX MONTH PEPIOD ENDED JUNE 30, 2025

Sta⭲dardз, i⭲terpretatio⭲з ot a⭲d ame⭲dme⭲tз to publiзhed accou⭲ti⭲g a⭲d reporti⭲g зta⭲dardз that are ⭲ot yet ettective
There are certain new and amended standards, issued by International Accounting Standards Board (IASB), interpretations and amendments that are mandatory for the Bank's accounting periods beginning on or after January 1, 2026 but are considered not to be relevant or will not have any material effect on the Bank's ﬁnancial statements except for:
- IFRS 18 'Presentation and Disclosure in Financial Statements' (published in April 2024) with applicability date of January 1, 2027 by IASB. IFRS 18 is yet to be adopted in Pakistan. IFRS 18 when adopted and applicable shall impact the presentation of 'Statement of Proﬁt and Loss Account' with certain additional disclosures in the condensed interim ﬁnancial statements.
- amendments to IFRS 9 'Financial Instruments' which clarify the date of recognition and derecognition of a ﬁnancial asset or ﬁnancial liability including selement of liabilities through banking instruments and channels including electronic transfers. The amendment when applied may impact the timing of recognition and derecognition of ﬁnancial liabilities.
- amendment to IAS 21 'The Effects of Changes in Foreign Exchange Rates' which will require Banks to apply a consistent approach in assessing whether a currency can be exchanged into another currency and, when it cannot, in determining the exchange rate to use and the disclosures to provide.

M6TEPI6L 6CCOUNTING POLICY INFOPM6TION

The material accounting policies applied in the preparation of these condensed interim ﬁnancial statements are consistent with those applied in the preparation of the annual audited ﬁnancial statements of the Bank for the year ended December 31, 2024. Impacts of adoption of IFRS 9 for comparative and current period are disclosed in note 4.1 below.

IFPS e - ˙Fi⭲a⭲cial I⭲зtrume⭲tз˙

The Bank had adopted IFRS 9 eLective from January 1, 2024 with modiﬁed retrospective approach for restatement permied under IFRS 9. The cumulative impact of initial application amounting to Rs. 1,219.76 million net of tax was recorded as an adjustment to equity at the beginning of the previous accounting period.

The Bank, in compliance with extended timelines prescribed in SBP's BPRD Circular Leer No. 16 dated July 29, 2024 and BPRD Circular Leer No. 1 dated January 22, 2025 had incorporated IFRS 9 related impacts of fair valuation of subsidised staL loans in the last quarter of 2024. Therefore, the condensed interim statement of proﬁt and loss account (un-audited) for the half year ended June 30, 2024 have been restated to incorporate these impacts. Had the restatement not been incorporated the proﬁt after tax and total comprehensive income for the half year ended June 30, 2024 would have been lower by Rs. 18.34 million. The details are tabulated below:

Fi⭲a⭲cial зtateme⭲t li⭲e itemз

Pupeeз i⭲ ˙000

Deзcriptio⭲

Mark-up/ return/ interest earned	110,791
Operating expenses	(72,637)	Impact of fair valuation of subsidised staL loans
Net loss on derecognition of ﬁnancial
assets measured at amortised cost	(2,194)
	35,960
Taxation	(17,620)	Tax impact of restatement
Net impact on proﬁt after tax	18,340
Net impact on Earnings Per Share (EPS)	Pupee 0.016	EPS impact of restatement

NOTES TO THE CONDENSED INTEPIM FIN6NCI6L ST6TEMENTS (UN-6UDITED) FOP THE SIX MONTH PEPIOD ENDED JUNE 30, 2025

1. 1. During the current period, in accordance with BPRD Circular No. 03 of 2022 dated July 5, 2022 and BPRD Circular Leer No. 16 dated July 29, 2024, the Bank has applied IFRS 9 'Financial Instruments' and measured unquoted equity securities at their fair value. The cumulative impact of application in current period amounting to Rs. 67.19 million net of tax has been recorded as an adjustment to equity at the beginning of the current period.
  2. The SBP has directed the Banks through its BPRD Circular Leer No. 1 dated January 22, 2025 to continue the existing revenue recognition methodology for Islamic Operations, including the requirements of IFAS 1 and IFAS 2 until further instructions. Had IFRS 9 been adopted in its entirety for revenue recognition from Islamic operations, the proﬁt after tax of the Bank would have been higher by Rs. 34.65 million.
  3. The SBP in a separate instruction SBPHOK-BPRD-RPD-BOK-827068 dated January 22, 2025 has allowed extension for application of ELective Interest Rate method upto December 31, 2025.
2. Critical accou⭲ti⭲g eзtimateз a⭲d judgeme⭲tз
  The basis for accounting estimates adopted in the preparation of these condensed interim ﬁnancial statements are the same as that applied in the preparation of the ﬁnancial statements for the year ended December 31, 2024, except for maers related to IFRS 9 which have been disclosed in note 4.1 to these condensed interim ﬁnancial statements.
3. Fi⭲a⭲cial riзk ma⭲ageme⭲t
  The ﬁnancial risk management objectives and policies adopted by the Bank are consistent with those disclosed in the annual audited ﬁnancial statements for the year ended December 31, 2024.
  (U⭲-audited) (Audited)
  Ju⭲e 30, December 31,
C6SH 6ND B6L6NCES WITH TPE6SUPY B6NKS

I⭲ ha⭲d

2025 2024

---- Pupeeз i⭲ ˙000 ----

Local currency	8,057,008	5,968,029
Foreign currencies	154,5ð0	186,814
With State Ba⭲k ot Pakiзta⭲ i⭲	8,211,5ð8	6,154,843
Local currency current accounts	1ð,043,1eð	15,258,838
Foreign currency current accounts	112,371	25,943
Foreign currency deposit accounts	278,ee1	257,275
With Natio⭲al Ba⭲k ot Pakiзta⭲ i⭲	1ð,434,558	15,542,056
Local currency current accounts	4,338,744	1,294,874
Local currency deposit accounts	ð7,77e	995,058
Foreign currency current accounts	1,244	4,436
	4,407,7ð7	2,294,368
Prize bo⭲dз	857	1,854
Less: Credit loss allowance held against cash and balances with treasury banks	(12)	(26)

Cash and balances with treasury banks - net of credit loss allowance 2e,054,738 23,993,095

NOTES TO THE CONDENSED INTEPIM FIN6NCI6L ST6TEMENTS (UN-6UDITED) FOP THE SIX MONTH PEPIOD ENDED JUNE 30, 2025

(U⭲-audited) (Audited)

Ju⭲e 30, December 31,

ð B6L6NCES WITH OTHEP B6NKS

Note

2025 2024

---- Pupeeз i⭲ ˙000 ----

	I⭲ Pakiзta⭲
In current accounts			5,411,177		900,776
In deposit accounts			305,1ð5		551,919
Outзide Pakiзta⭲			5,71ð,342		1,452,695
In current accounts			773,148		705,614
In deposit accounts			e,2ð7,487		1,104,292
			10,040,ð35		1,809,906
with other banks			(10,45e)		(10,327)
Balances with other banks - net of credit loss allowance 15,74ð,518 3,252,274
7	LENDINGS TO FIN6NCI6L INSTITUTIONS
	Placements with ﬁnancial institutions Less: Credit loss allowance held against lendings to ﬁnancial institutions	7.1	4,00ð,405 (e4,458)	238,944 (105,370)

Lendings to ﬁnancial institutions - net of credit loss allowance 3,e11,e47 133,574

7.1

(U⭲-audited) Ju⭲e 30,2025

Credit loзз

(Audited) December 31, 2024

Credit

ot credit loзз allowa⭲ce

Note

Le⭲di⭲g

allowa⭲ce held

Lending

loss allowance held

----- Pupeeз i⭲ ˙000 -----

Domeзtic

Performing Stage 1 3,775,000 122 - -Under performing Stage 2 - - - -Non-performing Stage 3

Substandard - - - -

Doubtful - - - -

Loss 7.2 231,405 e4,33ð 238,944 105,370

231,405 e4,33ð 238,944 105,370

Total 4,00ð,405 e4,458 238,944 105,370

Overзeaз - - - -

Total - - - -

7.2 As of June 30, 2025, the Bank has availed forced sales value benefit amounting to Rs. 137.07 million (December 31, 2024: Rs. 133.57 million), that is equivalent to the market value of the Pakistan Investment Bonds received by the Bank as part of the selement agreement against a non performing lending of the Bank. The resulting increase in the unappropriated proﬁt (net of tax) amounting to Rs. 64.43 million (December 31, 2024: Rs. 61.44 million) is not available for the distribution of cash or stock dividend to shareholders or bonus to employees.

NOTES TO THE CONDENSED INTEPIM FIN6NCI6L ST6TEMENTS (UN-6UDITED) FOP THE SIX MONTH PEPIOD ENDED JUNE 30, 2025

INVESTMENTS

(U⭲-audited) Ju⭲e 30, 2025

I⭲veзtme⭲tз by type:

Coзt / amortiзed coзt

Credit loзз allowa⭲ce

Surpluз / (deﬁcit)

Carryi⭲g value

-------Pupeeз i⭲ ˙000-------

Fair value through proﬁt or loзз (FVPL)

Non-Government Debt Securities 1,0ð4,720 - (13,80e) 1,050,e11

Fair value through other comprehe⭲зive i⭲come (FVOCI)

Federal Government Securities

322,142,045

324,571,421

ð77,081

(282,574)

3e4,507

Non-Government Debt Securities

5,174,514

(14e,e00)

(111,e37)

4,e12,ð77

327,ee3,ð40

(14e,e00)

2,034,8ð5

32e,878,ð05

6mortiзed coзt (6C)

Federal Government Securities

20,ð5e,452

6ззociate

113,ð0ð

Total i⭲veзtme⭲tз

34e,831,418

(14e,e00)

2,021,05ð

351,702,574

(Audited) December 31, 2024

Cost / amortised cost

Credit loss allowance

Surplus / (deﬁcit)

Carrying value

-------Rupees in '000-------

Fair value through proﬁt or loзз (FVPL)

Federal Government Securities Non-Government Debt Securities

5,367	-	(5)	5,362
1,064,760	-	(13,809)	1,050,951

1,070,127 - (13,814) 1,056,313

Federal Government Securities	255,339,267	-	2,659,286	257,998,553
Shares	677,081	-	(463,139)	213,942
Non-Government Debt Securities	5,428,308	(158,189)	(92,254)	5,177,865
	261,444,656	(158,189)	2,103,893	263,390,360
6mortiзed coзt (6C)
Federal Government Securities	18,217,573	-	-	18,217,573
6ззociate	102,351	-	-	102,351
Total i⭲veзtme⭲tз	280,834,707	(158,189)	2,090,079	282,766,597
			(U⭲-audited)	(Audited)
			Ju⭲e 30,	December 31,
			2025	2024
I⭲veзtme⭲tз give⭲ aз collateral Note ---- Pupeeз i⭲ ˙000 ----
Market Treasury Bills			4,728,155	3,692,167
Pakistan Investment Bonds			e0,e15,480	109,498,432
Ijara Sukuks			-	4,057,905
	8.2.1		e5,ð43,ð35	117,248,504

Fair value through other comprehe⭲зive i⭲come (FVOCI)

1. The market value of securities given as collateral is Rs 95,652.02 million (December 31, 2024: Rs 117,262.46 million)
  16
  
  NOTES TO THE CONDENSED INTEPIM FIN6NCI6L ST6TEMENTS (UN-6UDITED) FOP THE SIX MONTH PEPIOD ENDED JUNE 30, 2025

(U⭲-audited) (Audited)

Ju⭲e 30, December 31,

Credit loзз allowa⭲ce tor dimi⭲utio⭲ i⭲ value ot i⭲veзtme⭲tз

2025 2024

--- Pupeeз i⭲ ˙000 ---

Opening balance 158,18e 799,132

Impact of adoption of IFRS 9 - (633,983)

Balance after adoption of IFRS 9 158,18e 165,149

Charge / (reversals) Charge for the period / year Reversal for the period / year

Reversal on disposals / repayment during the period / year

-	-
(2ð)	(6,960)
(8,2ð3)	-

(8,28e)

(6,960)

Closing balance 14e,e00 158,189

Particularз ot credit loзз allowa⭲ce agai⭲зt debt зecuritieз

Category ot claззiﬁcatio⭲

(U⭲-audited)

-	-	-	-
-	-	-	-
14e,8e1	14e,8e1	158,154	158,154

(Audited) December 31, 2024

Outзta⭲di⭲g Credit loзз Outstanding Credit loss amou⭲t allowa⭲ce amount allowance held held
Domeзtic				----- Pupeeз i⭲ ˙000	-----
Performing	Stage 1	4,7ð2,78ð		e	5,019,711		35
Underperforming Non-performing Substandard	Stage 2 Stage 3	-		-	-		-
Doubtful Loss
		14e,8e1	14e,8e1		158,154	158,154
Total		4,e12,ð77	14e,e00		5,177,865	158,189
Overзeaз		-	-		-	-
Total		-	-		-	-

NOTES TO THE CONDENSED INTEPIM FIN6NCI6L ST6TEMENTS (UN-6UDITED) FOP THE SIX MONTH PEPIOD ENDED JUNE 30, 2025

Summariзed ﬁ⭲a⭲cial i⭲tormatio⭲ ot aззociate

I⭲veзtme⭲t i⭲ aззociate - u⭲liзted
Period / year e⭲ded
Number ot зhareз
Perce⭲tage ot holdi⭲g
Cou⭲try ot i⭲corporatio⭲
Coзt Pupeeз i⭲ ˙000
Tauruз Securitieз Limited
Taurus Securities Limited
Ju⭲e 30, 2025 (U⭲-audited)
December 31, 2024 (Audited)
4,050,374 30% Pakiзta⭲ 40,504
4,050,374 30% Pakistan 40,504
6ззetз Liabilitieз Equity Peve⭲ue
Proﬁt atter taxatio⭲
Total comprehe⭲зive i⭲come
18

Summary ot ﬁ⭲a⭲cial i⭲tormatio⭲ ot aззociate --------------------------- Pupeeз i⭲ ˙000 --------------------------

Based on ﬁnancial statements:
- October 1, 2024 to June 30, 2025	1,184,158	805,473	378,ð85	230,85e	28,21e	37,51ð
- October 1, 2023 to September 30, 2024	1,109,700	768,533	341,170	230,721	37,273	40,470

8.ð

Reporting date of associate (i.e. Taurus Securities Limited) is December 31. Further, results of its operations including share of proﬁt and other comprehensive income for the three months period October 1, 2024 to December 31, 2024 has been extracted by subtracting nine months period January 1, 2024 to September 30, 2024 ﬁgures from the annual audited ﬁnancial statements for the year ended December 31, 2024 and then adding that to six months period ﬁgures from January 1, 2025 to June 30, 2025 based on its un-audited interim ﬁnancial statements.

The market value of securities classiﬁed as amortised cost as at June 30, 2025 amounted to Rs. 20,726.16 million (December 31, 2024: Rs. 18,157.60 million).

Attention: This is an excerpt of the original content. To continue reading it, access the original document here.

Earlier from Bank Of Khyber

Bank of Khyber: Financial Results for the Half year ended June 30, 2025Aug 26, 2025

All Bank Of Khyber news releases