Transmission of Quarterly Financiual Statements 31.03.2026

Board of Directors

CORPORATE INFORMATION

As of March 31, 2026

Islam Zaib Chairman / Non-Executive Director

Kamran Ahmed Afridi Syed Asad Ali Shah

Non-Executive Director Independent Director

Tahir Jawaid Independent Director

Osman Asghar Khan Independent Director

Muhammed Shahid Sadiq Independent Director

Natasha Jehangir Khan Independent Director

Managing 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 Audit Committee

Syed Asad Ali Shah Chairman

Kamran Ahmed Afridi Member

Muhammed Shahid Sadiq Member

Osman Asghar Khan Member

Board Human Resource & Remuneration Committee

Board Compliance Committee

Muhammed Shahid Sadiq Chairman

Kamran Ahmed Afridi Member

Natasha Jehangir Khan Member

Hassan Raza Member

Chief Financial Officer

Irfan Saleem Awan

Company Secretary

Raza Mohsin Qizilbash

Registered Office / Head Office

The Bank of Khyber

24 The Mall, Peshawar Can . UAN# 00-92-91-111 95 95 95

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

Auditors

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

Legal Advisors

M/s. Mohsin Tayebaly & Co., Karachi

Registrar and Share Registration Office

THK Associates (Pvt) Ltd.

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

Karachi-75500

2

On behalf of the Board of Directors of the Bank of Khyber ("The Bank"), I am pleased to present the condensed interim financial information of the Bank for the three month period ended March 31, 2026 (first quarter).

Financial Highlights

The financial results of the Bank (Standalone) for the first quarter are as under:

(Rs. in Million) As at

(Rs. in Million)

For the three month period ended

Despite competitive market conditions, the Bank continued to advance its long-term, multi-faceted strategy focusing on all the key areas. For the quarter ended March 31, 2026, the Bank posted a profit before tax of Rs. 2,109 million, while profit after tax for this quarter stood at Rs. 1,013 million, as compared to profit before tax of Rs. 3,403 million and profit after tax of Rs. 1,603 million earned in the corresponding period last year. This decline in comparative profitability was primarily a ributable to the lower net interest income and lesser amount of gain on securities earned during the period. Operating expenses remained under control and increased by 8% during the quarter as compared to same period last year.

As a result of strenuous recovery efforts and prudent lending strategy followed by the management, the Bank achieved net reduction in NPLs which reduced from Rs. 12,530 million as of December 31, 2025 to Rs. 12,151 million at the quarter end. Similarly, the Bank achieved net reversal of credit loss allowance (ECL) of Rs. 357 million during the quarter under review which was higher as compared to the net reversal of Rs. 118 million achieved last year in the same period.

The Bank's total assets at the quarter ended increased to Rs. 489,205 million against Rs. 453,300 million as of December 31, 2025. Net advances increased to Rs. 129,368 million at the quarter-end (December 31, 2025: Rs. 126,706 million) while net investments increased to Rs. 312,241 million as compared to Rs. 274,957 million as at December 31, 2025. On the liabilities side, deposits reduced to Rs. 363,536 million at the quarter end (December 31, 2025: Rs. 378,123) while borrowings increased to Rs. 89,515 million as against Rs. 35,698 million as at December 31, 2025.

Continuous work is underway towards implementation of the conversion strategy. At the end of the quarter, the Bank was operating with 254 branches across the country out of which 199 are dedicated Islamic Banking branches. The deposit of Islamic banking operations of the Bank as of March 31, 2026 stood at Rs. 207,155 million thereby reflecting an increase in the proportion of total deposits of the Bank as compared to December 31, 2025.

3

Update on Subsidiary

On January 19, 2026, the SECP issued certificate of incorporation of the BOK Currency Exchange Company (Pvt.) Limited, a wholly subsidiary of the Bank. In this respect, the Bank has injected an amount of Rs. 1 billion as paid-up capital of the BOK exchange company during the quarter under review. Accordingly, the Bank has separately prepared and presented its first consolidated financial statements for the quarter ended March 31, 2026.

On February 13, 2026, SBP issued "in-principal approval" for operationalization of the BOK Exchange Company. This approval is valid for three months from the date of issuance. Moreover, necessary work by the exchange company is underway to complete the prerequisites within the stipulated timeframe to the satisfaction of SBP. After completing the requirements, the Exchange Company will apply to SBP to obtain authorization to carry out the foreign exchange business. This strategic initiative of the Bank aims to diversify revenue streams, create operational synergies, and expand business outreach.

Ratings

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) while maintained the short-term rating at 'A1' (Single A One). The medium to long-term rating of 'AA-' denotes high credit quality, with strong protection factors. Outlook on the assigned rating is 'Stable'

In June 2025, The Pakistan Credit Rating Agency Limited (PACRA) maintained the medium to long term entity rating of the Bank at 'A+' (Single A Plus) and short-term entity rating at "A-1" (Single A One). Outlook on the assigned rating is "Stable".

During the quarter under review, Islamic International Rating Agency ("IIRA") has assigned the 'Shari'a Compliance and Fiduciary Rating' of "SCFR (pk) 1" to Islamic Banking Operations of the Bank on the national scale, which denotes "No material deviations from national regulatory framework for Shari'ah Compliant Finance" and "SCFR (Global) - High" on the global scale, which denotes, "High level of conformance to global standards in terms of fulfilling fiduciary obligations of Shari'ah compliant Finance".

Future Outlook

The Bank remains vigilant of prevailing economic conditions and will continue to focus on sustaining growth momentum while maintaining strong asset quality and capital discipline. The cornerstone of the Bank's strategy will remain the enhancement of service quality standards and the delivery of state-of-the-art banking services through effective leverage of technology and a well-trained workforce.

Furthermore, the Bank will prioritize increasing advances across all economic segments and also aims to diversify its financing portfolio by targeting high-quality private sector borrowers for fresh loans, with an emphasis on opportunities in ancillary business and trade finance.

Acknowledgment

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 and on behalf of the Board of Directors

Hassan Raza

Peshawar: April 25, 2026 Managing Director & CEO

4

5

CONDENSED INTERIM UNCONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT MARCH 31, 2026

(Un-audited) (Audited)

March 31, December 31,

Note

2026 2025

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

NET ASSETS 21,437,685 23,676,690

21,437,685 23,676,690

CONTINGENCIES AND COMMITMENTS 24

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

MANAGING DIRECTOR

CHIEF FINANCIAL OFFICER

___________

DIRECTOR DIRECTOR DIRECTOR

6

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

January 1 to

March 31, 2026

January 1 to

March 31, 2025

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

Basic and diluted earnings per share

----------Rupees ---------

35 0.87 1.38

___________

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

MANAGING DIRECTOR

CHIEF FINANCIAL OFFICER

DIRECTOR DIRECTOR DIRECTOR

7

January 1 to

March 31, 2026

January 1 to

March 31, 2025

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

(restated)

___________

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

MANAGING DIRECTOR

CHIEF FINANCIAL OFFICER

DIRECTOR DIRECTOR DIRECTOR

8

Surplus / (deficit) on revaluation of

Share capital Statutory reserve

Investments

Property and equipment

Non-banking assets

Unappropriated profit Total

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

Movement in deficit on revaluation of investments in debt instruments - net of tax Share of surplus on revaluation of investment of associate - net of tax

Gain on sale of debt investments carried at FVOCI reclassified to profit and loss - 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

Movement in surplus on revaluation of investments in debt instruments through FVOCI- net of tax Gain on sale of debt investments carried at FVOCI reclassified to profit and loss - net of tax

Deficit transferred to profit and loss on reclassification of debt investment - net of tax Share of surplus on revaluation of investments of associate - net of tax Remeasurement (loss) on defined benefit obligations - net of tax

9

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

Movement in deficit on revaluation of investments in debt instruments - net of tax

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

Share of remeasurement loss on defined benefit obligations of associate - net of tax

MANAGING DIRECTOR

CHIEF FINANCIAL OFFICER

DIRECTOR DIRECTOR DIRECTOR

January 1 to

March 31, 2026

January 1 to

March 31, 2025

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

___________

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

MANAGING DIRECTOR

CHIEF FINANCIAL OFFICER

DIRECTOR DIRECTOR DIRECTOR

10

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

1. STATUS AND NATURE 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 254 branches including 199 Islamic banking branches (December 31, 2025: 254 branches including 199 Islamic banking branches). 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 'A1' (A-One) and 'A-1' (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 Bank of to of The Bank is in the process of seeking necessary regulatory approval for the same.

   1.2 During the year, the Securities and Exchange Commission of Pakistan (SECP) has issued certificate of incorporation of 'BOK Currency Exchange Company (Private) Limited' dated January 19, 2026 (incorporated as a wholly owned subsidiary of the Bank), and the Bank has injected an amount of Rs. 1,000 million as paid up capital in BOK Exchange Company. The company is in the process of completing necessary formalities after which it will apply

   to SBP for obtaining the authorization to carry out foreign exchange business.

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 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 "Murabah") are not reflected in these condensed interim unconsolidated financial statements as such, but are restricted to the amount of facility actually utilized and the appropriate portion of profit thereon.

   2. 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.

   3. The financial results of the Islamic Banking Branches have been included in these condensed interim unconsolidated 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 40 to these condensed interim unconsolidated financial statements.

   4. These condensed interim unconsolidated 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 at fair value through other comprehensive income and derivative financial instruments, if any, are stated at fair value; staff 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.

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

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

      11

      
      
      

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

3. STATEMENT OF COMPLIANCE

   1. These condensed interim unconsolidated 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 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 IFRS or IFAS, the requirements of the Banking Companies Ordinance, 1962, the Companies Act, 2017 and the said directives, shall prevail.

   2. The disclosures made in these condensed interim unconsolidated 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 unconsolidated 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 of the Bank for the year ended December 31, 2025.

   3. SBP vide BSD Circular Letter 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 unconsolidated financial statements.

   4. Standards, interpretations of and amendments to published approved accounting and reporting standards that are effective in the current 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, 2026 but are considered not to be relevant or do not have any material effect on the Bank's operations and therefore not detailed in these condensed interim unconsolidated financial statements except for IFRS 9 (Financial Instruments) disclosed under note 4.1.

   5. Standards, interpretations of and amendments to published approved accounting and reporting standards that are not yet effective

      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, 2027 but are considered not to be relevant or do not have any material effect on the Bank's operations except for:

      IFRS 18 - Presentation and Disclosure in Financial Statements January 1, 2027

      12

      
      
      

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

4. MATERIAL ACCOUNTING POLICY INFORMATION

   The material accounting policies applied in the preparation of these condensed interim unconsdolidated 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, 2025 except for changes mentioned in note 4.1.

   1. IFRS 9 - Financial Instruments

      The SBP in a separate instruction vide le er BPRD/RPD/822456/25 dated January 22, 2025 had allowed extension for application of Effective Interest Rate (EIR methodology) under IFRS 9 upto December 31, 2025. Accordingly, w.e.f January 01, 2026, the Bank has implemented the EIR methodology under IFRS 9. To account for the transition, the Bank has adopted the modified retrospective approach as allowed under IFRS 9. Accordingly the cumulative impact (net of tax), amounting to Rs. 16.78 million has been recognized as an adjustment in the equity as at January 01, 2026 in these condensed interim unconsolidated financial statements.

   2. 'The SBP has directed the Banks through its BPRD Circular Le er No. 1 dated January22, 2025 to continue the existing revenue recognition methodology for islamic operations, including the requirements of IFAS 1 and IFAS 2 until further instructions. Had the IFRS been adopted in its entirety for revenue recognition from islamic operations, the profit after tax of the Bank would have been higher by Rs. 78.50 million.

5. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

   The basis for accounting estimates adopted in the preparation of these condensed interim unconsolidated financial statements are the same as that applied in the preparation of the financial statements of the Bank for the year ended December 31, 2025 except for the ma ers related to IFRS 9 which have been disclosed in note 4.1 to these condensed interim unconsolidated financial statements.

6. 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 December 31, 2025.

   (Un-audited) (Audited)

   March 31, December 31,

7. CASH AND BALANCES WITH TREASURY BANKS

In hand

2026 2025

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

13

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

(Un-audited) (Audited)

March 31,

2026

December 31,

2025

(Un-audited) (Audited)

Note

March 31,

2026

December 31,

2025

1. LENDINGS TO FINANCIAL INSTITUTIONS -------- Rupees in '000 --------

   Call / clean money lending		-	3,300,000
   Placements with financial institutions Less: Credit loss allowance held against lendings to financial institutions	9.1	217,140 (85,607)	224,236 (85,687)
   Lendings to financial institutions - net of credit loss allowance		131,533	3,438,549

   (Un-audited) (Audited)

   March 31, 2026 December 31, 2025

   1. Lendings to financial institutions - particulars of credit loss allowance

      Lending

      Credit loss Lending

      allowance held

      Credit loss allowance held

      Note

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

      Domestic
      Performing	Stage 1		-	-	3,300,000	-
      Under performing	Stage 2		-	-	-	-
      Non-performing	Stage 3
      Substandard			-	-	-	-
      Doubtful			-	-	-	-
      Loss		9.2	217,140	85,607	224,236	85,687
      			217,140	85,607	224,236	85,687
      Total			217,140	85,607	3,524,236	85,687
      Overseas			-	-	-	-
      Total			-	-	-	-

   2. The credit loss allowance as of March 31, 2026 includes the forced sales value benefit amounting to Rs. 131.53 million (December 31, 2025: Rs. 138.55), availed by the Bank 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. 63.13 million (December 31, 2025: Rs. 65.12 million) is not available for the distribution of cash or stock dividend to shareholders or bonus to employees.

      14

      
      
      

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

1. INVESTMENTS

   (Un-audited) March 31, 2026

   1. Investments by type:

      Cost / amortised cost

      Credit loss allowance

      Surplus / (deficit)

      Carrying value

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

      Fair value through profit or loss (FVPL)

      Non Government Debt Securities 1,364,680 - (15,459) 1,349,221

      Fair value through other comprehensive income (FVOCI)

      Federal Government Securities Shares

      Non-Government Debt Securities

      298,844,498	-	(1,058,763)	297,785,735
      677,080	-	(130,540)	546,540
      2,648,886	(137,494)	(126,179)	2,385,213

      302,170,464 (137,494) (1,315,482) 300,717,488

      Amortised cost (AC)

      Federal Government Securities Non-Government Debt Securities

      8,538,728	-	-	8,538,728
      515,780	(5)	-	515,775

      9,054,508 (5) - 9,054,503

      Associate 120,275 - - 120,275

      Subsidiary (note 1.2) 1,000,000 1,000,000

      Total investments 313,709,927 (137,499) (1,330,941) 312,241,487

      Cost / amortised cost

      (Audited) December 31, 2025

      Credit loss Surplus / (deficit) allowance

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

      Carrying value

      Fair value through profit or loss (FVPL)

      Non Government Debt Securities 1,364,680 - (15,459) 1,349,221

      Fair value through other comprehensive income (FVOCI)

      Federal Government Securities	259,127,494	-	1,661,852	260,789,346
      Shares	677,081	-	(178,456)	498,625
      Non-Government Debt Securities	2,617,666	(141,626)	(90,270)	2,385,770
      	262,422,241	(141,626)	1,393,126	263,673,741
      Amortised cost (AC)
      Federal Government Securities	9,308,916	-	-	9,308,916
      Non-Government Debt Securities	507,264	(5)	-	507,259
      	9,816,180	(5)	-	9,816,175
      Associate	117,490	-	-	117,490
      Total investments	273,720,591	(141,631)	1,377,667	274,956,627
      			(Un-audited)	(Audited)

      March 31,

      December 31, 2025

   2. Investments given as collateral Note

      2026

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

      Market Treasury Bills		69,000,000	-
      Pakistan Investment Bonds		18,300,000	13,878,200
      	10.2.1	87,300,000	13,878,200

      1. The market value of securities given as collateral is Rs.81,284.77 million (December 31, 2025: Rs. 13,871.20 million).

         15

         
         
         

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

(Un-audited) (Audited)

March 31, December 31,

1. ADVANCES Performing Non performing Total

   Note

   (Un-audited) March 31,

   (Audited) December 31,

   (Un-audited) March 31,

   (Audited) December 31,

   (Un-audited) March 31,

   (Audited) December 31,

   2026 2025 2026 2025 2026 2025

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

   Loans, cash credits, running finances, etc.		36,741,924	41,044,761	9,962,438	10,367,438	46,704,362	51,412,199
   Islamic financing and related assets		93,840,704	86,833,272	1,968,939	1,943,405	95,809,643	88,776,677
   Bills discounted and purchased		99,295	99,608	219,630	219,630	318,925	319,238
   		130,681,923	127,977,641	12,151,007	12,530,473	142,832,930	140,508,114
   Impact of fair valuation of advances		(1,893,246)	(1,903,583)	-	-	(1,893,246)	(1,903,583)
   Advances - gross		128,788,677	126,074,058	12,151,007	12,530,473	140,939,684	138,604,531
   Credit loss allowance against advances	11.3
   - Stage 1		560,766	702,763	-	-	560,766	702,763
   - Stage 2		426,807	395,797	-	-	426,807	395,797
   - Stage 3		-	-	10,583,830	10,800,150	10,583,830	10,800,150
   		987,573	1,098,560	10,583,830	10,800,150	11,571,403	11,898,710
   Advances - net of credit loss allowance		127,801,104	124,975,498	1,567,177	1,730,323	129,368,281	126,705,821
   						(Un-audited) March 31,	(Audited) December 31,

   1. Particulars of advances (gross)

      2026 2025

      18

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

      In local currency 140,939,684 138,604,531

      In foreign currencies - -

      140,939,684 138,604,531

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

   2. Advances include Rs. 12,151.01 million (December 31, 2025: Rs. 12,530.47 million) which have been placed under non-performing / stage 3 status as detailed below:

      (Un-audited) (Audited)

      March 31, 2026 December 31, 2025

      Category of classification in stage 3

      Non performing

      Credit loss allowance

      Non performing

      Credit loss allowance

      loans loans

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

      Domestic
      Other assets especially mentioned (OAEM)	79,512	57,138	151,988	81,548
      Substandard	221,314	112,167	774,959	530,827
      Doubtful	984,182	667,836	419,689	283,341
      Loss	10,865,999	9,746,689	11,183,837	9,904,434

      19

      12,151,007 10,583,830 12,530,473 10,800,150

      Overseas Total

      - - - -

      - - - -

      12,151,007 10,583,830 12,530,473 10,800,150

      
      
      

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

(Un-audited) (Audited)

March 31, 2026 December 31, 2025

The Bank has adopted IFRS 9 with effect from January 1, 2024. In accordance with the SBP's IFRS 9 Application Instructions (together with BPRD Circular Le er No.16 of 2024 dated July 29, 2024), credit loss allowance against NPLs has been taken at higher of the i) provision as required under SBP's Prudential Regulations; or ii) credit loss allowance computed in accordance with the requirements of the Application Instructions. This has effectively reduced the cumulative FSV benefit availed by the Bank as on period end. As at March 31, 2026, the Bank has availed cumulative benefit of forced sales value of Rs. 957.74 million (December 31, 2025: Rs. 936.19 million). Increase in unappropriated profit amounting to Rs. 459.71 million (December 31, 2025: Rs. 440.00 million) is not available for the distribution of cash or stock dividend to shareholders or bonus to employees.

(Un-audited) (Audited)

March 31, December 31,

1. PROPERTY AND EQUIPMENT Note

   2026 2025

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

   Capital work-in-progress 12.1 172,898 290,463

   Property and equipment 4,585,385 4,506,076

   4,758,283 4,796,539

   1. Capital work-in-progress

      Civil works 160,926 76,921

      Equipment 11,972 212,400

      Furniture and fixtures - 216

      Advances to suppliers - 926

      172,898 290,463

      21

      
      
      

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

1. 1. Additions to property and equipment

      (Un-audited)

      For the three months ended

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

      March 31,

      2026

      March 31,

      2025

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

      	Capital work-in-progress - net additions / (transfers) Property and equipment	(117,565)	20,737
      	Furniture and fixtures	16,234	27,977
      	Electrical, office and computer equipment	265,319	44,597
      	Vehicles	-	26,701
      	Books	10	-
      	Leasehold improvements	50,972	27,603
      		332,535	126,878
      	Total	214,970	147,615
      12.3	Disposal of property and equipment
      	The net book value of property and equipment disposed off during the period is as follows:
      	Furniture and fixtures	21	7
      	Electrical, office and computer equipment Leasehold improvements	- -	349 -
      	Total	21	356
      		(Un-audited)	(Audited)
      		March 31,	December 31,

2. RIGHT-OF-USE ASSETS

Buildings

At January 1

2026 2025

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

22

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

(Un-audited)

For the three months ended

March 31,

2026

March 31,

2025

No intangible assets were disposed off during the periods ended March 31, 2026 and March 31, 2025.

(Un-audited) (Audited)

March 31, December 31,

15 DEFERRED TAX ASSETS

2026 2025

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

23

(Un-audited) (Audited)

March 31, December 31,

24

(Un-audited) (Audited)

1. BORROWINGS

   March 31,

   2026

   December 31, 2025

   Secured

   Borrowings from State Bank of Pakistan (SBP) under:

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

   	- Export refinance scheme	2,334,700	2,205,700
   	- Long term financing facility	2,193,181	2,367,827
   	- Refinance and credit guarantee scheme for women entrepreneurs	42,728	46,242
   	- Financing facility for renewable energy	190,460	204,448
   	- Refinance facility for modernization of Small and Medium Enterprises (SMEs)	127,026	134,449
   	- Refinance facility for combating COVID-19	111,830	182,745
   	- SME Asaan Scheme (SAAF)	280,841	321,801
   	- Financing facility for storage of agriculture produce	102,077	107,538
   		5,382,843	5,570,750
   	Repurchase agreement borrowings	80,732,114	13,878,200
   	Total secured	86,114,957	19,448,950
   	Unsecured Call borrowings	3,400,029	16,249,028
   	Total	89,514,986	35,697,978

2. DEPOSITS AND OTHER ACCOUNTS

   (Un-audited) (Audited)

   March 31, 2026 December 31, 2025

   63,357,425	893,635	64,251,060	68,296,014	744,527	69,040,541
   174,301,731	129,812	174,431,543	176,241,734	116,671	176,358,405
   100,402,016	255,329	100,657,345	107,567,941	601,574	108,169,515
   18,693,817	-	18,693,817	21,709,929	-	21,709,929

   In local currency

   In foreign currencies

   Total In local

   currency

   In foreign currencies

   Total

   Customers Current deposits Saving deposits Term deposits Others

   Financial Institutions Current deposits Saving deposits

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

   659,184	30,851	690,035	1,999,589	30,896	2,030,485
   4,812,694	-	4,812,694	814,345	-	814,345

   356,754,989 1,278,776 358,033,765 373,815,618 1,462,772

   5,471,878 30,851 5,502,729 2,813,934 30,896

   362,226,867 1,309,627 363,536,494 376,629,552 1,493,668

   375,278,390

   2,844,830

   378,123,220

   (Un-audited) (Audited)

   March 31,

   2026

   December 31, 2025

3. LEASE LIABILITIES

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

   Outstanding amount at the start of the period / year	1,757,104	2,147,700
   Additions during the period / year	108,166	379,414
   Lease payments including interest during the period / year	(204,936)	(1,097,755)
   Interest expense	97,411	390,465
   Terminations / modifications during the period / year	-	(62,720)
   	641	(390,596)

   Outstanding amount at the end of the period / year 1,757,745 1,757,104

   25

   
   
   

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

   (Un-audited) (Audited)

   March 31,

   December 31, 2025

   2026

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

   20.1	Liabilities outstanding
   	Not later than one year	689,979	585,565
   	Later than one year and up to five years	1,067,766	1,171,539

   Total at the period / year end 1,757,745 1,757,104

   1. The Bank mainly has lease contracts for real estate that are used in its operations including branches and other offices. Generally, the Bank is restricted from assigning and subleasing the lease assets. As a practical expedient, management does not separate lease and non-lease components, wherever applicable. The additions to lease obligations during the period have been discounted at rates ranging between 10.40% to 11.22% (December 31, 2025: 10.98% to 12.24%) per annum; being the relevant incremental borrowing rate of the Bank.

      (Un-audited) (Audited)

      March 31,

      December 31, 2025

      Note

      2026

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

      21 OTHER LIABILITIES
      Mark-up / return / interest payable in local currency		5,428,349	7,389,057
      Mark-up / return / interest payable in foreign currencies		1,167	16,380
      Unearned commission and income on bills discounted		138,601	150,512
      Accrued expenses and supplier payables		1,848,482	1,835,808
      Acceptances		2,173	2,910
      Unclaimed dividends		112,921	113,242
      Dividends payable		1,968,704	-
      Mark to market loss on forward foreign exchange contracts		14,570	147
      Deferred income on government schemes		1,275	1,275
      Deferred income on Islamic financing		703,655	622,651
      Islamic pool management reserves		100,694	98,206
      Share subscription money refund		1,091	1,091
      Retention money		40,088	39,738
      Bills payment system over the counter (BPS-OTC)		18	49,502
      Charity fund balance		12,483	11,648
      Branch adjustment account		7,378	-
      Payable to defined benefit plan		42,276	3,499
      Security deposits against ijarah		29,383	32,153
      Levies and other taxes payable		66,182	38,629
      Credit loss allowance against off-balance sheet obligations	21.1	17,090	42,406
      Others		392,565	383,428
      		10,929,145	10,832,282
      21.1 Credit loss allowance against off-balance sheet obligations
      Opening balance		42,406	44,098
      Charge for the period / year		6,898	19,419
      Reversal for the period / year		(32,214)	(21,111)
      		(25,316)	(1,692)
      Closing balance		17,090	42,406

      26

      
      
      

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

      1. SHARE CAPITAL

         1. Authorized capital

            (Un-audited) (Audited) (Un-audited) (Audited)

            March 31,

            December 31,

            March 31,

            December 31,

            2026 2025 2026 2025

            Number of shares ----- Rupees in '000 -----

            1,500,000,000 1,500,000,000 Ordinary shares of Rs. 10 each 15,000,000 15,000,000

         2. Issued, subscribed and paid up (Un-audited) (Audited)

            March 31, December 31,

            2026 2025

            Number of shares

            Ordinary shares of Rs. 10 each

            722,698,448	722,698,448 Fully paid in cash	7,226,984	7,226,984
            435,237,541	435,237,541 Issued as fully paid bonus shares:	4,352,376	4,352,376
            1,157,935,989	1,157,935,989 Closing balance	11,579,360	11,579,360

         3. The Bank has only one class of shares and at reporting date, the Government of Khyber Pakhtunkhwa and Ismail Industries Limited held 812,893,804 (December 31, 2025: 812,893,804) and 282,852,969 (December 31, 2025: 282,852,969) ordinary shares respectively. Moreover, the Bank has no reserved shares under options.

            (Un-audited) (Audited)

      2. SURPLUS ON REVALUATION OF ASSETS

March 31,

2026

December 31,

2025

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

27

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

(Un-audited) (Audited)

March 31, December 31,

2026 2025

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

Commitments for outstanding forward foreign exchange contracts are disclosed in these condensed interim financial statements at contracted rates.

24.2.2 Undrawn loan commitments

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. In addition, the Bank makes revocable commitments that do not a ract any significant penalty or expense if the facility is unilaterally withdrawn.

Management is confident of a favourable outcome of the above ma ers. Hence, no provision has been recognised for the same in these condensed interim financial statements.

29

(Un-audited)

For the three months ended

March 31, March 31,

2026 2025

1. MARK-UP / RETURN / INTEREST EARNED Note --------- Rupees in '000 ---------

   Loans and advances		3,392,991	3,399,400
   Investments		4,697,915	6,727,635
   Lendings to financial institutions		53,099	131,852
   Balances with banks		20,899	40,067
   Sukuk bonds		3,209,364	3,201,328
   11,374,268 13,500,282
   25.1	Interest income recognized on:
   	Financial assets measured at amortized cost	3,476,086	4,080,229
   	Financial assets measured at FVOCI	4,688,818	9,307,122
   	Financial assets measured at FVPL	3,209,364	112,931

   11,374,268 13,500,282

2. MARK-UP / RETURN / INTEREST EXPENSED

   Deposits 5,428,508 6,266,760

   Borrowings 1,631,574 2,027,451

   Lease liability 97,411 100,460

   7,157,493 8,394,671

3. FEE AND COMMISSION INCOME

   Branch banking customer fees 8,573 5,520

   Consumer finance related fees - 375

   Card related fees (Debit cards) 177,163 104,704

   Commission on trade 40,032 41,162

   Commission on guarantees 61,058 60,070

   Commission on remi ances including home remi ances 2,326 2,805

   Rebate from financial institutions 12,384 9,573

   Others 2,635 3,892

   304,171 228,101

4. GAIN ON SECURITIES

   Realised gain 28.1 66,229 520,715 Unrealised gain/ (loss) - measured at FVPL - -

   66,229 520,715

   1. Realised gain on:

Federal government securities 66,229 520,715

66,229 520,715

30

(Un-audited)

For the three months ended

(Un-audited)

For the three months ended

31

2,932,562 2,720,474

1. OTHER CHARGES

   Penalties imposed by State Bank of Pakistan 25 130

   32

   
   
   

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

(Un-audited)

For the Three months ended

March 31,

2026

March 31,

2025

1. CREDIT LOSS ALLOWANCE / (REVERSAL) Note --------- Rupees in '000 ---------AND WRITE OFFS - NET

   Credit loss allowance held against cash and balances with treasury banks and balances with other banks	7 & 8	77	385
   (Reversal) of credit loss allowance against lendings to financial institutions	9	(79)	(6,972)
   (Reversal) of credit loss allowance for diminution in
   value of investments	10.3	(4,132)	(4,132)
   (Reversal) of credit loss allowance against advances	11.3	(327,307)	(74,623)
   (Reversal) of credit loss allowance against other assets	16.1.1	(375)	(1,588)
   (Reversal) of credit loss allowance against off balance sheet obligations	21.1	(25,316)	(31,059)

   (357,132) (117,989)

2. TAXATION

   Current 931,680 1,626,586

   Deferred 164,000 173,783

   1,095,680 1,800,369

   (Un-audited)

   For the Three months ended

3. BASIC AND DILUTED EARNINGS PER SHARE

   March 31,

   2026

   March 31,

   2025

   Profit for the period 1,012,897 1,602,532

   ------ (Number of shares) ------

   Weighted average number of ordinary shares 1,157,935,989 1,157,935,989

   ----------- (Rupees) ------------

   Basic and diluted earnings per share 0.87 1.38

   1. There were no dilutive potential ordinary shares outstanding as at March 31, 2026 and March 31, 2025.

4. FAIR VALUE MEASUREMENTS

   The fair value of quoted securities other than those classified under amortised cost, is based on quoted market price. Quoted securities classified under amortised cost are carried at cost. The fair value of unquoted equity securities, other than investments in associate and subsidiary, is determined on the basis of valuation methodologies.The fair value of unquoted debt securities, fixed term loans, other assets, other liabilities, fixed term deposits and borrowings cannot be calculated with sufficient reliability due to the absence of current and active market for these assets and liabilities and reliable data regarding market rates for similar instruments.

   In the opinion of the management, the fair value of the remaining financial assets and liabilities are not significantly different from their carrying values since assets and liabilities are either short-term in nature or in the case of customer loans and deposits, are frequently re-priced.

   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 liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Fair value measurements using inputs that are not based on observable market data (i.e. unobservable inputs).

33

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

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

On balance sheet financial instruments

Financial assets - measured at fair value

Carrying value

(Un-audited) March 31, 2026

Fair value

Level 1 Level 2 Level 3 Total

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

Financial assets - disclosed but not measured at fair value

Off-balance sheet financial instruments - measured at fair value

Forward exchange contracts purchase 3,306,173 - 14,570 - 14,570

Forward exchange contracts sale 4,756,385 - 6,956 - 6,956

Carrying

(Audited) December 31, 2025 Fair value

On balance sheet financial instruments

Financial assets measured at fair value

value Level 1 Level 2 Level 3 Total

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

Financial assets - disclosed but not measured at fair value

Off-balance sheet financial instruments - measured at fair value

Pakistan Investment Bonds / Market Treasury Bills

Un-listed GOP ijarah Sukuks

Term Finance, Bonds and Sukuk certificates

Fair values of Pakistan Investment Bonds and Treasury Bills are derived using the PKRV rates for fixed rate securities and PKFRV rates for floating rate PIB's (Reuters page).

Fair values of unlisted GoP Ijarah Sukuks are derived using the PKISRV rates announced by the Financial Market Association (FMA) through Reuters. These rates denote an average of quotes received from eight different pre-defined / approved dealers / brokers.

Investments in debt securities (comprising term finance certificates, bonds, Sukuk certificates and any other security issued by a company or a body corporate for the purpose of raising funds in the form of redeemable capital) are valued on the basis of the rates announced by the Mutual Funds Association of Pakistan (MUFAP) in accordance with the methodology prescribed by the Securities and Exchange Commission of Pakistan. In the determination of the rates, the MUFAP takes into account the holding pa ern of these securities and categorizes these as traded, thinly traded and non-traded securities. However, fair values of investments in unquoted debt securities are valued on the basis of present value technique based on market interest rates.

Valuation techniques and inputs used in determination of fair values within level 3

Property & equipment (Leasehold land) and

non-banking assets acquired in satisfaction of claims

These assets are revalued on regular basis using professional valuers on the panel of Pakistan Banker's Association. The valuation is based on their assessment of market value of the properties. The valuation experts used a market based approach to arrive at the fair value of the Bank's properties. The market approach used prices and other relevant information generated by market transactions involving identical, comparable or similar properties. These values are adjusted to reflect the current condition of the properties. The effect of changes in the unobservable inputs used in the valuations cannot be determined with certainty accordingly a qualitative disclosure of sensitivity has not been presented in these financial statements.

Unquoted equity securities Fair value of unquoted equity securities is determined on the basis of income approach.

The following table summarises the quantitative information about the significant unobservable inputs used in level 3 fair value measurement of investments:

Description

Unquoted equity securities

35

1. SEGMENT INFORMATION

   1. Segment details with respect to business activities

      For the three months ended March 31, 2026 (Un-audited)

      Corporate Finance

      Trading and Sales

      Retail Banking Commercial

      Banking

      Total

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

      Profit and loss
      Net mark-up / return / profit	(1,952,104)	6,234,195	(919,813)	854,497	4,216,775
      Inter segment revenue - net	2,415,079	(3,374,833)	1,077,395	(117,641)	-
      Non mark-up / return / interest income	3,006	210,938	157,256	96,056	467,257
      Total income	465,982	3,070,300	314,839	832,911	4,684,032
      Segment direct expenses	(1,686,322)	(44,229)	(724,802)	(477,233)	(2,932,587)
      Inter segment expense allocation	1,394,581	(1,878,013)	527,689	(44,258)	-
      Total expenses	(291,741)	(1,922,242)	(197,113)	(521,491)	(2,932,587)
      Credit loss allowance	-	9,085	73,021	275,026	357,132
      Profit before tax	174,241	1,157,143	190,746	586,448	2,108,577

      As at March 31, 2026 (Un-audited)

      Corporate Finance

      Trading and Sales

      Retail Banking Commercial

      Banking

      Total

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

      Balance sheet
      Cash and bank balances	3,026,212	16,076,485	857,848	4,216,416		24,176,961
      Investments	9,054,503	302,066,709	-	1,120,276		312,241,487
      Net inter segment lending	158,993,578	(223,139,212)	71,586,229	(7,440,595)		-
      Lendings to financial institutions	-	131,533	-	-		131,533
      Advances - performing	46,725,784	-	15,960,738	65,114,582		127,801,103
      Advances - non performing	-	-	157,285	1,409,892		1,567,177
      Others	3,151,652	11,033,292	4,102,500	4,999,382		23,286,826
      Total assets	220,951,729	106,168,806	92,664,599	69,419,952		489,205,088
      Borrowings	5,437,177	80,732,114	-	3,345,695		89,514,986
      Deposits and other accounts	208,053,183	7,182,946	89,423,864	58,876,501		363,536,494
      Net inter segment borrowing	(159,044,692)	223,314,995	(71,717,885)	7,447,582		-
      Others	4,667,098	3,846,507	2,324,804	3,877,513		14,715,922
      Total liabilities	59,112,766	315,076,562	20,030,784	73,547,291		467,767,403
      Equity	161,838,963	(208,907,755)	72,633,815	(4,127,339)		21,437,685
      Total equity and liabilities	220,951,729	106,168,806	92,664,599	69,419,952		489,205,088
      Contingencies and commitments	22,589,822	8,416,918	12,166,694	24,302,915		67,476,349

      36

      
      
      

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

      For the Three months ended March 25 (Un-audited)

      Profit and loss

      Corporate Finance

      Trading and Sales

      Retail Banking

      Rupees in 000

      Commercial Banking

      Total

      Net mark-up / return / profit	(2,706,544)	7,863,470	(1,110,960)	1,059,645	5,105,611
      Inter segment revenue - net	3,248,944	(4,930,112)	1,404,869	276,299	-
      Non mark-up / return / interest income	1,276	644,341	156,674	97,614	899,905
      Total Income	543,676	3,577,699	450,583	1,433,558	6,005,516
      Segment direct expenses	232,955	(3,121,415)	96,296	71,560	(2,720,604)
      Inter segment expense allocation	(479,238)	1,500,731	(300,408)	(721,085)	-
      Total expenses	(246,283)	(1,620,684)	(204,112)	(649,525)	(2,720,604)
      Credit loss allowance	-	11,101	(62,397)	169,285	117,989
      Profit / (loss) before tax	297,393	1,968,116	184,074	953,318	3,402,901

      As at December 31, 2025 (Audited)

      Corporate Finance

      Trading and Sales

      Retail Banking

      Rupees in 000

      Commercial Banking

      Total

      	Balance sheet
      	Cash and bank balances	3,908,003	17,966,414	886,196	5,854,570	28,615,183
      	Investments	9,816,175	265,022,962	-	117,490	274,956,627
      	Net inter segment lending	168,242,348	(263,810,079)	77,687,081	17,880,650	-
      	Lendings to financial institutions	-	3,438,549	-	-	3,438,549
      	Advances - performing	48,578,815	-	12,994,176	63,402,507	124,975,498
      	Advances - non performing	-	-	242,664	1,487,659	1,730,323
      	Others	3,343,288	7,236,330	3,624,791	5,379,025	19,583,434
      	Total assets	233,888,629	29,854,176	95,434,908	94,121,901	453,299,614
      	Borrowings	5,570,750	13,878,200	-	16,249,028	35,697,978
      	Deposits and other accounts	216,876,558	-	91,356,440	69,890,222	378,123,220
      	Net inter segment borrowing	(168,242,348)	263,810,079	(77,687,081)	(17,880,650)	-
      	Others	8,012,494	637,338	3,151,465	4,000,429	15,801,726
      	Total liabilities	62,217,454	278,325,617	16,820,824	72,259,029	429,622,924
      	Equity	171,671,175	(248,471,441)	78,614,084	21,862,872	23,676,690
      	Total equity and liabilities	233,888,629	29,854,176	95,434,908	94,121,901	453,299,614
      	Contingencies and commitments	22,590,344	2,969,298	12,163,032	33,913,902	71,636,576
      37.2	Geographical segment

      Segment details with respect to geographical locations are not presented in these condensed interim financial statements as geographically the Bank conducts all its operations in Pakistan only.

      37

      
      
      

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

1. RELATED PARTY TRANSACTIONS

   The Bank has related party relationship with its majority shareholders (Government of Khyber Pakhtunkhwa and Ismail Industries Limited), associate, subsidiary, directors, key management personnel, staff retirement benefit plan and other related parties.

   The Bank enters into transactions with related parties in the ordinary course of business and on substantially the same terms as for comparable transactions with person of similar standing. Contributions to and accruals in respect of staff retirement benefits and other benefit plans are made in accordance with the actuarial valuations / terms of the contribution plan. Remuneration to the executives are determined in accordance with terms of their appointments. Further, the Bank acts as a custodian for securities held in Investor Portfolio Securities (IPS) account maintained on behalf of Government of Khyber Pakhtunkhwa having face value of NIL (December 31, 2025: Rs. 16,688.43 million).

   Details of transactions with related parties during the period, other than those which have been disclosed elsewhere in these condensed interim unconsolidated financial statements are as follows:

   (Un-audited) (Audited)

   As at March 31, 2026 As at December 31, 2025

   Key

   Employee

   Key

   Employee

   Directors

   management personnel

   Subsidiary Associate

   funds Directors management

   personnel

   Subsidiaries Associate

   funds

   Investments

   Opening balance

   Addition during the period / year Repaid during the period / year Transfer (out) / in - net

   Closing balance

   Advances

   Opening balance

   Addition during the period / year Repaid during the period / year Transfer (out) / in - net

   Closing balance

   Credit loss allowance / provision held against advances

   Deposits and other accounts

   Opening balance

   Received during the period / year Withdrawn during the period / year Transfer (out) / in - net

   Closing balance

   Other liabilities

   Interest / mark-up payable

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

   -		-	-	-	-	-	- -	-
   -		1,000,000	-	-	-	-	- -	-
   -		-	-	-	-	-	- -	-
   -		-	-	-	-	-	- -	-
   -	-	1,000,000	-	-	-	-	- -	-
   -	195,993	-	-	-	-	181,425	- -	-
   -	26,509	-	-	-	-	62,999	- -	-
   -	20,471	-	-	-	-	37,180	- -	-
   -	(23,855)	-	-	-	-	(11,251)	- -	-
   -	178,176	-	-	-	-	195,993	- -	-
   -	20	-	-	-	-	19	-	-
   7,239	47,372	-	39,310	4,549,944	148	8,423	- 95,829	3,016,225
   16,149	26,602	1,003,655	37,506	253,851	26,452	216,680	- 245,663	5,985,394
   16,508	29,307	-	41,765	177,500	16,635	169,461	- 302,182	4,451,675
   (755)	52	-	-	-	(2,726)	(8,270)	- -	-
   6,125	44,719	1,003,655	35,051	4,626,295	7,239	47,372	- 39,310	4,549,944
   23	963	5,788	377	23,117	4	1,110	- 715	23,869

   (Un-audited) (Un-audited)

   For the three months ended March 31, 2026 For the three months ended March 31, 2025

   Key

   Employee

   Key

   Employee

   Directors

   management personnel

   Subsidiary Associate

   funds Directors management

   personnel

   Subsidiaries

   Associate

   funds

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

   Income

   Mark-up / return / interest earned	-	1,182		-	-	-	984	- -	-
   Expense Mark-up / return / interest expensed	32	2,211	11,880	1,168	108,172	52	1,032	- 6,747	101,071
   Operating expenses - Compensation	17,892	82,394		-	-	25,650	64,411	- -	-

   1. As of March 31, 2026, the Bank has an equity investment having cost of Rs. 112.50 million (December 31, 2025: Rs. 112.50 million) and carrying value of Rs. 291.48 million (December 31, 2025: Rs. 291.48 million) in Dawood Family Takaful Limited, a related party.

   2. Government of Khyber Pakhtunkhwa (GoKP) holds 70.20% shareholding in the Bank and therefore, entities which are owned and / or controlled by the GoKP, or where the GoKP may exercise significant influence, are also related parties of the Bank. The Bank in the ordinary course of its business enters into transaction with various departments of the GoKP and its related entities. Such transactions include advances to, deposits from and provision for other banking services to Government related entities.

      Transactions and balances with Government and its related entities, other than those disclosed in the respective notes to these condensed interim financial statements, as at period end includes loans and advances and deposits amounting to Rs. 46,726 (December 31, 2025: Rs. 48,579 million) and Rs. 208,053 million (December 31, 2025: Rs. 216,877 million), respectively.

   3. An amount of Rs 1,381.92 million and Rs. 408.72 million is payable against dividend to GOKP and Ismail industries respectively as at March 31, 2026.

Detailed related party disclosure for being government entity is disclosed as required under IAS-24 "Related Party Disclosures". Relevant details are referred in the following notes:

Particulars Note

Investments 10.1

Shareholding 22

38