HBL | Habib Bank Limited Transmission of Annual Report for the Year Ended December 31, 2025

ANNUAL REPORT

2025

BRAND REFRESH

HBL has unveiled its Refreshed Brand Identity, marking a defining milestone in its evolution as Pakistan's premier financial services group.

For more than eight decades, HBL has been one of Pakistan's most iconic institutions, shaping the nation's financial landscape and contributing meaningfully to its economic development.

The refreshed identity honours this heritage while expressing clarity of purpose and confidence in the future. It is not a reinvention of HBL. It is a sharper expression of our identity.

The 'HBL' wordmark remains unchanged, preserving the trust and institutional equity built over generations. The addition of a distinctive design device, inspired by the calligraphic precision of the HBL mark, introduces a contemporary visual language that conveys clarity, movement and progress.

HBL's signature 'Turquoise' colour continues to anchor the identity, complemented by 'Light Lemon Yellow' colour to enhance vibrancy while remaining unmistakably HBL. Together, these elements create a unified and cohesive visual system across the institution.

The Refreshed Brand Identity will be implemented across branches, ATMs, digital platforms, mobile applications, websites and customer-facing environments, ensuring consistency and recognisability at every touchpoint.

The refreshed identity will also be rolled out across HBL's subsidiaries, including HBL Microfinance Bank, HBL Asset Management, HBL Zarai Services Limited, HBL Currency Exchange, and HBL Bank UK, unifying the group under one distinctive visual language.

This unified identity reflects four guiding principles: Forging Ahead, Progressing Together, Accelerating Towards the Future, and Shared Prosperity. These principles define how HBL leads, serves, and contributes to the broader economy.

CONTENTS

1. Corporate Information

   2

2. Management 06 Vision & Mission 07 Values

1. International Footprint

2. HBL Domestic Network

10 Accolades

11 Key Performance Indicators

12 Growth at a Glance - 2020 to 2025 (Consolidated)

3

14 Board of Directors

22 Chairman's Message

24 Directors' Report (English)

39 Directors' Report (Urdu)

56 Annual Statement on Internal Controls

1. Independent Auditor's Review Report

2. Statement of Compliance

16 Corporate Sustainability

21 Gender Pay Gap Statement

62 Shariah Board Report (English)

64 Shariah Board Report (Urdu)

CONSOLIDATED FINANCIAL STATEMENTS

68 Independent Auditor's Report - Consolidated

1. Consolidated Statement of Financial Position

2. Consolidated Profit and Loss Account

3. Consolidated Statement of Comprehensive Income

4. Consolidated Statement of Changes in Equity

5. Consolidated Cash Flow Statement

6. Notes to the Consolidated Financial Statements

161 Annexures - Consolidated

4

5

UNCONSOLIDATED FINANCIAL STATEMENTS

274 Directors' Report (English)

288 Directors' Report (Urdu)

304 Independent Auditor's Report - Unconsolidated

309 Unconsolidated Statement of Financial Position

310 Unconsolidated Profit and Loss Account

311 Unconsolidated Statement of Comprehensive Income

312 Unconsolidated Statement of Changes In Equity

6

313 Unconsolidated Cash Flow Statement

314 Notes to the Unconsolidated Financial Statements

392 Annexures - Unconsolidated

393 Pattern of Shareholding

396 Trading by Executives of the Bank

397 Categories of Shareholders

399 Notice of Annual General Meeting Admission Slip

Form of Proxy (English/Urdu)

CORPORATE INFORMATION

Board of Directors

Mr. Sultan Ali Allana Chairman

Mr. Shaffiq Dharamshi Director

Mr. Moez Ahamed Jamal Director

Mr. Salim Raza Director

Dr. Najeeb Samie Director

Mr. Khaleel Ahmed Director

Ms. Saba Kamal Director

Mr. Muhammad Nassir Salim President & CEO

Board Committees

Board Audit Committee

Mr. Khaleel Ahmed Chairman

Dr. Najeeb Samie Member

Mr. Moez Ahamed Jamal Member

Chief Internal Auditor Secretary

Board Compliance and Conduct Committee

Mr. Moez Ahamed Jamal Chairman

Mr. Shaffiq Dharamshi Member

Mr. Khaleel Ahmed Member

Chief Compliance and Conduct Officer Secretary

Board Development Finance Committee

Mr. Salim Raza Chairman

Mr. Khaleel Ahmed Member

Ms. Saba Kamal Member

Mr. Muhammad Nassir Salim Member

Head Corporate Strategy Secretary

Board Human Resource and Remuneration Committee

Mr. Khaleel Ahmed Chairman

Mr. Sultan Ali Allana Member

Dr. Najeeb Samie Member

Mr. Shaffiq Dharamshi Member

Chief Human Resources Officer Secretary

Board IT Committee

Ms. Saba Kamal Chairperson

Mr. Moez Ahamed Jamal Member

Mr. Salim Raza Member

Mr. Muhammad Nassir Salim Member

Chief Technology Officer Secretary

Board Risk Management Committee

Mr. Salim Raza Chairman

Mr. Shaffiq Dharamshi Member

Mr. Muhammad Nassir Salim Member

Chief Risk Officer Secretary

Board Nomination and Remuneration Committee

Mr. Khaleel Ahmed Chairman

Mr. Moez Ahamed Jamal Member

Mr. Shaffiq Dharamshi Member

Dr. Najeeb Samie Member

Company Secretary Secretary

Board Strategy Input and Monitoring Committee

Mr. Sultan Ali Allana Chairman

Mr. Moez Ahamed Jamal Member

Dr. Najeeb Samie Member

Ms. Saba Kamal Member

Mr. Muhammad Nassir Salim Member

Head Corporate Strategy Secretary

Chief Financial Officer

Mr. Irfan Ahmed Meer

Company Secretary

Mr. Uzman Naveed Chaudhary

Legal Advisors

Mandviwalla and Zafar

Legal Consultants and Advocates

Auditors

KPMG Taseer Hadi & Co. Chartered Accountants

Share Registrar

CDC Share Registrar Services Limited CDC House, 99 - B,

Block 'B', S.M.C.H.S., Main Shahra-e-Faisal Karachi -74400, Pakistan

Tel: Customer Support Services (Toll Free) 0800-CDCPL (23275) Fax: (92-21) 34326053

Email: info@cdcsrsl.com Website: https://www.cdcsrsl.com

HBL Corporate Secretariat

Phone: (92-21) 37137543

Fax: (92-21) 35148370

Principal Office

Habib Bank Limited

HBL Tower, Plot No. G-4,

KDA Scheme 5, Block 7 Clifton, Karachi, Pakistan

Phone: (92-21) 33116030

Registered Office

Habib Bank Limited

9th Floor, Habib Bank Tower,

Jinnah Avenue, Blue Area, Islamabad, Pakistan

Phone: (92-51) 2270856, (92-51) 2821183

Fax: (92-51) 2872205

Corporate Website

https://www.hbl.com

Internet Banking

https://www.hbl.com/personal/digital-banking/hbl-internetbanking

Konnect

https://www.hbl.com/konnect

hblbank HBLPak

MANAGEMENT

Muhammad Nassir Salim

President & CEO

Aamir Irshad

Head Corporate, Commercial & Investment Banking

Aamir Kureshi

Head Products & Payments

Abrar A. Mir

Chief Information & Transformation Officer

Armughan Ahmed Kausar

Head Konnect & Mass Segment

Faisal Lalani

Head Financial Institutions

Farhan Talib

Head International

Irfan Ahmed Meer

Chief Financial Officer

Jamal Nasir

Chief Human Resources Officer

Kamran Zaffar Muggo

Chief Operations Services Officer

Muhammad Aalishaan Zaidi

Head Retail Banking

Muhammad Faisal Anwar

Chief Technology Officer

Muhammad Farhanullah Khan

Chief Compliance & Conduct Officer

Naeem Bashir Ahmad

Head Corporate Strategy

Rauf Ali Jan

Chief Internal Auditor

Risha A. Mohyeddin

Global Treasurer

Sami Aziz

Head Remedial & Structured Credits

Tariq Masaud

Chief Risk Officer

Uzman Naveed Chaudhary

Company Secretary & Head Regulatory Affairs

VISION

Enabling people to advance with confidence and success.

MISSION

To make our customers prosper, our staff excel and create value for stakeholders.

VALUES

Our values are the fundamental principles that define our culture and are brought to life in our attitudes and behaviour. It is our values that make us unique.

INTEGRITY - Be Ethical and Fair

• We honour our commitments and do what is right

• We are fair, respectful and honest at all times

• We are ethical in our decisions and interactions

• We take responsibility for our actions

• We are prudent and responsible with the assets entrusted to HBL

  
  
  

  CUSTOMER CENTRIC - Deliver Great Experiences

• We value our clients and develop products and services around their needs

• We provide exceptional service to all we serve

• We understand and respect our customers

• We deliver solutions that add value to our customers' lives

• We consider the impact of our policies and decisions on our customers

• We are fully transparent with our customers

  
  
  

  VALUE PEOPLE - Respect, Empower, Appreciate

• We treat our people equitably and make decisions on merit

• We invest in people and provide opportunities for learning and growth

• We empower people to do what is needed for success

• We provide a positive and collaborative work environment

• We celebrate our successes and recognise people for their contributions

• We encourage and embrace diversity

  
  
  

  PROGRESSIVE - Innovate and Challenge

• We challenge our thinking to raise the bar

• We encourage our team members to question the status quo

• We innovate and adapt to change

• We positively impact and serve the communities in which we live

  
  
  

  EXCELLENCE - Be Your Best

• We lead in our industry

• We take ownership of what we do

• We relentlessly pursue quality without compromise

• We consistently adhere to measurable standards and look for ways to exceed them

• We benchmark against the best

INTERNATIONAL FOOTPRINT

Branch Network: Subsidiary:

Bahrain Bangladesh China Lebanon* Maldives Singapore Sri Lanka Turkiye* UAE

HBL Bank UK

Associates:

Diamond Trust Bank Kenya/Tanzania/Uganda/Burundi

Kyrgyz Investment and Credit Bank Kyrgyz Republic

*Planned exit from location under voluntary closure.

HBL DOMESTIC NETWORK

Domestic Branches:

Number of Branches

Subsidiaries:

- HBL Microfinance Bank Limited

Name of Region Number of Branches

Azad Jammu Kashmir 2

Balochistan 8

Islamabad 1

Gilgit-Baltistan 24

Khyber Pakhtunkhwa 19

Punjab 112

Sindh 57

223

• Habib Bank Financial Services (Private) Limited

• HBL Currency Exchange (Private) Limited

• HBL Asset Management Limited

• HBL Zarai Services Limited

  Associates:

• Jubilee General Insurance Company Limited

• Jubilee Life Insurance Company Limited

ACCOLADES

Pakistan's Best Bank

Euromoney Awards for Excellence 2025

Pakistan's Best Investment Bank

Euromoney Awards for Excellence 2025

Corporate and Investment Bank of the Year -Pakistan

ABF Corporate & Investment Banking Awards 2025

Pakistan's Best Bank for Large Corporates

Euromoney Awards for Excellence 2025

The Most Inclusive Organizations in Pakistan

Global Diversity, Equity & Inclusion Benchmarks (GDEIB)

Best Bank for ESG

Pakistan Banking Awards 2025

Best Syndicated Loan - Pakistan

The Asset Triple A Sustainable Finance Awards 2025

Best Bond Adviser - Pakistan

The Asset Triple A Sustainable Finance Awards 2025

Best Digital Innovation

Pakistan Digital Awards 2025

Project Finance House - Pakistan

The Asset Triple A Sustainable Infrastructure Awards 2025

Women in Leadership Champion

Financial Alliance for Women

Pakistan Domestic Trade Finance Bank of the Year 2025

Asian Banking & Finance Wholesale Banking Awards 2025

Pakistan's Best Cash Management Bank 2025

Euromoney Transaction Banking Awards 2025

Pakistan's Best Investment Bank for 2025

Global Finance Awards

Pakistan's Best Sukuk House

Euromoney Islamic Finance Award 2024

Best DCM House - Domestic

FinanceAsia Awards 2025

Best Investment Bank - Domestic

FinanceAsia Awards 2025

Sukuk Adviser of the Year - Pakistan

The Asset Triple A Islamic Finance Awards 2025

Media & Entertainment & Game of the Year

HBL P@SHA ICT Awards 2025

KEY PERFORMANCE INDICATORS

7.7TRILLION

ASSET BASE

PKR

Rs.

DEPOSIT BASE

PKR

5.5 TRILLION

148.1BILLION

PKR

Rs.

PROFIT BEFORE TAXATION

Rs.

TOUCHPOINTS

2,318 - ATMS | 1,740 - BRANCHES

54,364 - KONNECT AGENTS

40,009 - POS TERMINALS

42,113 - QR CODE LOCATIONS

64

MILLION

ATM - 159 | DEBIT/CREDIT CARD - 104 MB/IB - 1,445 | KONNECT AGENTS - 76

ACQUIRING - 129 | CASH MANAGEMENT - 52

1 9

DIGITAL TRANSACTIONS

Rs.

40MILLION

,

CUSTOMERS WORLDWIDE

140,544

GROWTH AT A GLANCE - 2020 TO 2025 (CONSOLIDATED) GROWTH AT A GLANCE - 2020 TO 2025 (CONSOLIDATED) BOARD OF DIRECTORS

Mr. Sultan Ali Allana

Chairman

Sultan Ali Allana has been the Chairman of the Board of Directors of HBL, since the privatization of the Bank in February 2004, by the Government of Pakistan. He has over 40 years of experience in the financial and banking sectors in Pakistan and in the international markets, in his capacity as the Head of Financial Services Group of the Aga Khan Fund for Economic Development (AKFED).

Mr. Moez Ahamed Jamal

Director

Mr. Moez Ahamed Jamal has been on the Board of HBL since 2009. He has over 45 years of experience in the financial sector. He currently serves on the Boards of Diamond Trust Bank Kenya and Pension Fund for Aga Khan Foundation.

Dr. Najeeb Samie

Director

Dr. Najeeb Samie joined the Board in 2013. He has over 38 years of experience in the corporate and financial sectors. He is currently Member Board of PIA Investments Limited and Managing Director, Roosevelt Hotel Corporation N.V, and is a Director of Minhal France, S.A., Minhal Incorporated, Parisien Management Company B.V., Avant Hotels (Pvt.) Limited and PIA Hotels Limited.

Mr. Shaffiq Dharamshi

Director

Mr. Shaffiq Dharamshi joined the Board in 2015. He is a banker with over 25 years of banking experience in the Middle East and Africa. He also currently serves on the Boards of Diamond Trust Bank, Uganda, Diamond Trust Bank, Kenya, Kyrgyz Investment and Credit Bank, Kyrgyzstan and Investment and Credit Bank, Tajikistan.

Mr. Salim Raza

Director

Mr. Salim Raza joined the Board in 2017. He has over 41 years of experience in the banking and financial sectors. He has held various positions at Citibank NA in Pakistan and abroad and has also held the position of Governor of the State Bank of Pakistan. He currently serves on the Boards of Karandaaz Pakistan, Manzil Pakistan, Indus Earth Trust, Habib University, the Layton Rahmatulla Benevolent Trust, Planet N Group of Companies, Nasra Public School, HBL Zarai Services Limited and is an adjunct professor at the Institute of Business Administration (IBA), Karachi for Political Economy.

Mr. Khaleel Ahmed

Director

Mr. Ahmed has over 40 years of financial markets experience. He was the Chief Investment Officer at International Finance Corporation (World Bank Group), where he worked for 30 years on emerging economies and financial markets. After graduating from London School of Economics and Political Science, Mr. Ahmed qualified as a Chartered Accountant, from the Institute of Chartered Accountants of England and Wales. He is a Fellow of the Institute of Chartered Accountants, Pakistan. He has prior work experience at Price Waterhouse (London) and National Development Finance Corporation, Pakistan.

Ms. Saba Kamal

Director

Ms. Kamal has over three decades of experience in the area of Information Technology, with 20 years in senior leadership positions with IBM in Pakistan and internationally. She has an MBA from the Institute of Business Administration (IBA), Karachi, and has completed a number of certifications and leadership trainings at IBM Centers and from Insead, Boston University and China Europe International Business School (CEIBS). Ms.

Kamal has completed her Director certification from the Pakistan Institute of Corporate Governance and currently serves on the Boards of Packages Limited and Yunus Textile Mills Limited. She is also a member of the IBA Board of Governors.

Mr. Muhammad Nassir Salim

President & CEO

Mr. Nassir assumed the role of President & CEO in March 2024. He is a seasoned banker with 37 years of banking experience in USA, Middle East and Pakistan. He has been associated with HBL since 2017 and served on the positions of Chief Operating Officer, Head Branch & Islamic Banking and Head Global Operations. He has an MBA (Finance) from Institute of Business Administration (IBA), Karachi and fellow of Institute of Bankers Pakistan. Currently, he is member of Executive Committee of Pakistan Banks' Association and director on the Board of HBL Zarai Services Limited.

CORPORATE SUSTAINABILITY

SDG4- Quality Education Capacity Building

In 2025, HBL reinforced its sustainability and climate action agenda through a comprehensive suite of capacity-building initiatives for employees and stakeholders. Key efforts focused on strengthening environmental and social risk management, including the digitalization of ESRM training modules covering ESRM SOP, ESMS, and ESDD & Enhanced ESDD procedures.

HBL delivered targeted programs such as the IFC STEP e-learning course for new Relationship Managers

and Credit Officers, benefiting 104 employees. The Bank enabled ESG-focused capacity building for 119 employees, including Relationship Managers, Credit

Officers, ESRM Managers, and Green Banking Office staff.

The Bank also prioritized gender inclusion and social safeguards, participating in sessions on integrating gender perspectives into climate action and mitigating gender-based violence risks.

To build expertise in ESG reporting and compliance, employees attended workshops on global standards, including IFRS S1 & S2, GRI, and international governance and disclosure practices. Specialized programs explored emerging areas such as carbon markets, green building standards, and Pakistan's Green Taxonomy, alongside global initiatives like the Paris Aligned Finance Fellowship and the launch of BII's Climate Risk Management Toolkit.

Financial Literacy Programs

In line with its focus on inclusive growth, HBL expanded its financial literacy programs across the country.

More than 300 women entrepreneurs received training and financial education during the year. The National Financial Literacy Program (NFLP) made significant impact enhancing financial awareness and financial inclusion across Pakistan. HBL successfully conducted more than 2000 sessions nationwide, engaging more than 85,000 participants, of which more than 50,000 were women participants. The program also facilitated account opening for the participants further contributing to financial inclusion. HBL MfB also sustained its leadership in financial literacy, and conducted more

than 1,100 training sessions, reaching more than 28,000 beneficiaries, with women representing 70% of total participants. In recognition of its outstanding performance, the State Bank of Pakistan conferred multiple accolades on HBL MfB, including "Champion

Bank for NFLP", "Best Microfinance Bank for AFLP", and nine regional performance certificates.

SDG 5 and 10- Gender Equality and Reduced Inequalities

HBL reaffirmed its commitment to diversity, equity and inclusion in 2025, ranking as the "Most Inclusive

Organization" for the third time securing 'Best Practice' recognition in all 15 categories and HBL Microfinance Bank was recognized as one of the "Top 5 Inclusive Organizations" in Pakistan at the Global Diversity, Equity, and Inclusion Benchmark (GDEIB) Awards.

This commitment is reflected in our growing representation, highlighted by the appointment of our employee as the first woman Chair of HBL Microfinance Bank, four women serving on various boards and 29% female representation within the Extended Leadership Team. Overall, women make up approximately 22% of our workforce.

HBL further reinforced its institutional framework for inclusion through the "Diversity Advocacy Network", the "Diversity Council", and a network of 40 DEI Champions, ensuring that diversity, equity, and inclusion remain embedded in enterprise decision-making. These governance structures are supported by global experts and complemented by policies such as the Gender Mainstreaming Policy, Anti-Harassment Policy, Flexible Work Policy, Gender-sensitive marketing SOPs and the Supplier Diversity Framework.

HBL's gender inclusion agenda continued to progress through targeted initiatives such as the "Women in Leadership Exchange Series", the Bank held 12 curated sessions with the President and Executive Committee, engaging 100 senior management women across the Bank. Also, three Fireside Dialogues with distinguished external senior women leaders were conducted for HBL's senior women cohorts, providing exposure to global leadership perspectives. The "Women in Leadership Exchange Circle" was introduced as a sustained forum for peer support.

The Bank also expanded its "Falak mentorship" ecosystem, with senior leaders receiving focused mentorship from both internal and international experts, strengthening leadership readiness among women talent.

Capability-building was strengthened through the "Power & Progress" learning series for mid-level management women, and Bank wide "Beyond Bias, Gender-Smart & Anti-Harassment awareness with a completion rate of 99% employees. The "Beyond the Counter program" was also launched to support the professional development of 1100 women tellers at HBL. The "HBL Waapsi" - Returnship Program has supported 85 women returning to the workforce since

its launch. Targeted hiring and internal elevation under the Women Branch Manager and Branch Operations Manager intervention increased women's representation in frontline leadership roles by 20%. Women continued to advance through early-career pathways and comprising over 70% gender ratio in the flagship League -Management Trainee Program.

In 2025, HBL expanded support with adoption benefits and a daycare referral directory. Over 170 employees availed paternity leave, and more than 200 availed maternity leave. Notably, 93% of women returned to work after maternity leave, with 96% remaining with the Bank 12 months later, reflecting the effectiveness of our family-supportive policies.

To strengthen workplace safety and wellbeing, HBL introduced its first nursing room, placed female hygiene machines across key locations and distributed maternity kits among women employees.

The International Women's Day 2025 marked a milestone, with 31 senior leaders engaging more than 1,000 women. The Bank also celebrated International Men's Day, Mother's Day, and hosted its first "Bring Your Family to Work Day", strengthening family connection with HBL's workplace environment.

HBL marked "Pinktober" with a focused breast cancer awareness drive, offering free mammograms for women over 35 years of age. The initiative was supported by a podcast and virtual awareness engagements, reinforcing the importance of early detection for women's wellbeing.

HBL continued to expand its impact beyond the Bank. Through its partnership with British International Investment (BII), the Bank mobilized 2X-aligned gender capital to support SMEs and women impacted by climate adversity. The Bank's "Women Leading Change" campaign highlighted women who demonstrated exceptional leadership, resilience, and commitment to purpose. HBL hosted its first-ever "She Builds", Women Entrepreneur Showcase on National Working Women's Day, bringing together women from its supplier pipeline

and prospective entrepreneurs. The program also featured an awareness session led by HBL's internal stakeholders to support women-led businesses in their growth journey.

HBL Nisa launched the "Women Market Champions (WMC) initiative, appointing ambassadors across all 22 regions to advance women's financial inclusion and strengthen Nisa portfolio growth. These champions

promote financial literacy, support women's onboarding into the formal financial system, and monitor regional performance. HBL Microfinance Bank is at the forefront of driving financial inclusion and reducing gender gap, with women making up 43% of its customer base.

Under BISP, supported 3.3M women beneficiaries up from 2.5M in 2024 where female Konnect agents ensured secure and accessible disbursements. 1,654 active female agents and QR merchants currently operate under HBL Konnect - the Bank's Branchless Banking Solution. HBL's impact was recognized by the State Bank of Pakistan through the Women of Impact - Financial Sector Award.

HBL's achievements in driving gender equality were also recognized globally. The Bank was awarded the "Woman in Leadership Champion 2025" by the Financial Alliance for Women and ranked #1 Employer of Choice in the banking sector by International Finance Corporation & Pakistan Business Council.

SDG 7- Affordable and Clean Energy

HBL has committed to becoming a Green Financial Institution, harnessing sustainable development, and leading the way in embedding sustainability into its core operations. HBL continued its commitment to promoting financing for renewable energy during 2025, with an outstanding amount of approximately PKR

34 billion. In total, 86 renewable energy projects have been funded, contributing to a total generation capacity of 3,705.6 MW of clean energy. This comprehensive portfolio includes 120 MW from Biogas, 3,129 MW from Hydropower, 227.1 MW from Solar, and 229.5 MW from Wind energy.

SDG 8- Decent Work and Economic Growth

In 2025, HBL advanced its commitment to inclusive development through innovative, cashflow-based and collateral-free financing solutions that create easier access to credit for underserved businesses. In 2025, the Retail Lending portfolio surpassed PKR 155 billion.

HBL Asaan Finance, the flagship cashflow-based lending product contributing PKR 1.7 billion in financing to small businesses nationwide.

To strengthen on-ground support for entrepreneurs, HBL pioneered the establishment of 17 SME Trade Centers across Pakistan. These centers provide dedicated advisory, trade services, and targeted support, enabling SMEs to participate more effectively in domestic

and cross-border trade. As a result of this enhanced infrastructure, HBL's Trade Finance portfolio achieved a volume of USD 1,630 million in 2025.

HBL Konnect

HBL konnect has established itself as the market leader in Out-of-Branch Cash Management for B2B customers, utilizing a robust network of over 50,000 branchless banking agents connected to HBL branches. Through its on-the-Go Collection business, HBL Konnect has processed PKR 2.2 trillion for 55 million

transactions, offering convenience, security, and dignity to Pakistan's frontline workers. Available 24/7, this service extends banking beyond traditional hours, supporting underserved communities.

In partnership with Jubilee Insurance, HBL Konnect consolidated micro-insurance offerings worth PKR 1 billion, providing essential health and life coverage to underserved segments of society. As a trusted partner for government cash disbursements, HBL Konnect has been integral in supporting the Benazir Income Support

Program (BISP), disbursing over PKR 156 billion to women beneficiaries. Additionally, HBL Konnect has strengthened ties with more than 66 government institutions nationwide, further solidifying its role in delivering critical public-sector financial solutions.

In Punjab, through its partnership with the Bank of Punjab (BOP), HBL Konnect disbursed PKR 1.4 billion in wheat subsidies and PKR 11.2 billion under the Ramazan Relief Program. HBL Konnect also introduced Proof of Life verification services for pensioners to expand open banking services for nationwide customers. In Sindh, in collaboration with Sindh Bank, HBL Konnect planned PKR

5 billion in farmer subsidies for 100,000 accounts in 2025, with a focus on digital disbursements. In Balochistan, HBL Konnect supported climate resilience and community recovery through World Bank emergency housing subsidies, benefiting 9,600 households with PKR 1 billion in funds. A three-year agreement was signed to process PKR 13 billion in farmer subsidies and issue 300,000 debit cards, advancing long-term agricultural sustainability. In Khyber Pakhtunkhwa, HBL Konnect facilitated payments for 288,000 beneficiaries, issued 24,000 debit cards, and disbursed PKR 178 million in collaboration with KP Zakat advanced social protection. A structured fertilizer subsidy program is projected to deliver PKR 17 billion in support over three years, enhancing food security.

HBL Konnect enabled financial resilience through loan collections for HBL MFB, processing 44,000 transactions worth PKR 444 million, and supported BISP disbursements for 0.6 million beneficiaries, with

an estimated impact of PKR 36.4 billion. HBL Konnect's partnership with Nadra Technology Limited and 1LINK is driving digital transformation, with projected deposits of PKR 112 billion and 14 million transactions, ensuring secure and efficient settlement systems.

SDG 9- Industry, Innovation, and Infrastructure

HBL has redefined the banking experience by embedding sustainability into every aspect of its digital journey.

With a strong emphasis on eco-friendly innovation and customer centricity, the Bank offers a wide range of digital solutions, including HBL Mobile & Internet

Banking, ATM & CDMs, QR, POS, and E commerce, that not only ensure seamless and secure banking services but also significantly reduce reliance on paper, physical branches, and carbon intensive processes.

By processing nearly 90% of all financial transactions through digital channels, the Bank has drastically minimized the environmental footprint associated with traditional banking. Through digitization, HBL Mobile has saved millions of sheets of paper, reduced branch footfall, and cut down energy consumption tied to physical banking operations. Over 50% of total Credit Card issuance and 35% of Personal Loan disbursement were made through HBL Mobile, eliminating the need for paper heavy processes. Additionally, 30% of Ready Cash spend was routed through HBL Mobile, reflecting customer trust in digital solutions that are both convenient and environmentally responsible.

HBL's biller aggregator platform has played a pivotal role in motivating various collection and billing companies

to adopt digital payment solutions through mobile apps, online banking, and ATMs. At the same time, HBL continues to elevate customer journeys by offering

a comprehensive range of digital services, from bill payments and fund transfers to digital credit facilities and biometric onboarding within the app, significantly minimizing reliance on physical branch visits.

SDG 12- Responsible Consumption and Production

To enhance the effectiveness of its Social and Environmental Management System (SEMS), HBL

undertook a strategic restructuring during the year. The initiative resulted in the establishment of:

• Green Banking Office under the Corporate, Commercial & Investment Banking Group

• Environmental & Social Risk Management Unit

  under the Risk Management Group

• Green Operations Officer under Corporate Services

This structure positions HBL to implement Green Banking practices in line with the State Bank of Pakistan's Green Banking Guidelines (2017) across its domestic and international network. These dedicated units will guide the Bank's operations, lending, investments, and product development to minimize environmental impact, foster climate-resilient economies, and create sustainable

long-term value for customers, shareholders, and communities.

In 2025, HBL achieved a significant milestone by reducing its exposure to the tobacco sector to zero, fulfilling the commitment outlined in its Board-approved SEMS policy introduced in 2020.

SDG 13- Climate Action

The Bank joined the United Nations Environment Program Finance Initiative (UNEP FI) by signing the Principles of Responsible Banking (PRB). HBL's

inaugural impact analysis under the UNEP FI Principles for Responsible Banking reflects a strong foundation for sustainable growth. The review of the entire consumer banking portfolio highlighted meaningful positive contributions in financial accessibility and affordability, supported by inclusive products such as HBL Nisa, Haryali Account, and Mahana Amdan. Climate-smart agriculture financing and renewable energy initiatives further strengthened resilience for farmers and communities, while financial literacy programs expanded inclusion nationwide.

HBL demonstrated progress in renewable energy financing and health and safety impacts, particularly in carbon-intensive sectors. Policies like "No New Coal" (in power and mining) and "No Deforestation," the Bank is well-positioned to advance climate stability and sustainable finance. The Bank has identified climate mitigation and financial health as priority impact areas, aligning with its net-zero operational commitment by 2030 and ongoing efforts to develop sector-specific pathways.

We launched our Impact & Sustainability Report 2024, in reference to GRI standards and UN SDG

commitments. The report provides a detailed review of HBL's efforts toward supporting global sustainability objectives. Looking ahead, we will build on these initiatives in our Impact & Sustainability Report 2025, which will provide an update on our progress and ongoing actions to creating long-term environmental and social impact. The report is accessible on our website at https://www.hbl.com/sustainability

Scan here to see our Impact & Sustainability Report 2024

GENDER PAY GAP STATEMENT

The Bank's reward policies are designed to compensate employees fairly and equitably. The Bank ensures that employees are remunerated according to their roles, responsibilities and performance and there is no discrimination based on gender, race or ethnicity.

The gender pay gap on an overall basis* for the year ended December 31, 2025, is as under:

• Mean Gender Pay Gap is 40%

• Median Gender Pay Gap is 45%

*This is based on a 22% - 78% employee representation ratio for women and men respectively.

However, to ensure equal pay at all levels, pay parity at each grade is also reviewed on an annual basis, which acts as an internal metric to monitor variance.

• At Senior Manager & above levels, the pay parity is 99%, indicating that the women at these levels are equally remunerated as men

• At Manager & below levels, the pay parity shows that the median pay of women is 95% of that for men

We remain committed to fostering diversity, inclusion and equal opportunity in our leadership ranks and broader workforce and have designed our policies to foster equitable practices in hiring, retaining, rewarding and promoting employees to support our commitment.

Muhammad Nassir Salim President & CEO

Rs.

CHAIRMAN'S MESSAGE

2025 was a year of momentum. Profit before tax reached a record Rs 148.1 billion, with earnings per share rising to Rs 45.48. In a softening interest rate environment, our strategic emphasis remained on deposit mobilisation, resulting in a 27% growth in total deposits. At the same time, we continued to invest in agriculture, SMEs, digital innovation, and aggressively pursued our sustainability agenda. This year also marks HBL's Brand Refresh, a sharper expression of who we are and where we are headed; it reflects our intent, rooted in heritage and focused on the future.

As the nation's largest commercial bank, our responsibility goes beyond scale. We are custodians of trust, catalysts for progress, and partners in shaping the country's economic destiny. HBL's mission is simple and steadfast: to drive sustainable growth, expand financial inclusion, and strengthen prosperity for all.

In a world shaped by technological disruption, climate urgency, demographic shifts, and geo-political uncertainty, our role is not merely to respond, but to anticipate. We

are building a bank that is digital at its core, inclusive in its reach, and disciplined in its governance. From urban centers to remote communities, we have been steadily expanding access to secure, affordable, and user-friendly banking for underbanked individuals and communities. Most especially, entrepreneurs, SMEs, farmers, and women - the backbone of our economy.

Financial inclusion is not a mere slogan: it is an economic imperative. By broadening access to credit, savings, and digital payment solutions, we unlock productivity and empower millions to actively participate in national growth. Every account opened, every enterprise financed, and every home supported represents a tangible step toward shared prosperity.

Powering SMEs, Transforming Agriculture

SMEs power Pakistan's growth and we power theirs. In 2025, we financed over 6,000 new SME clients and launched Business Debit Cards to simplify everyday transactions. Retail

trade crossed a historic US) 1.6 billion milestone.

Agricultue remains at the heart of Pakistan's prosperity. Our role is not merely that of a financial partner, but a catalyst for transformation across the agricultural landscape: Beyond Banking, Sowing Change. Our agriculture portfolio reached Rs 59 billion, with fresh disbursements of Rs 14 billion.

Combined with HBL Microfinance, the total stands at Rs 106 billion. We accelerated green financing by solarizing more than 2,300 farms and deploying high-efficiency irrigation systems. In partnership with the State Bank of Pakistan, we also disbursed Rs 3.4 billion under the Prime Minister's Youth & Agriculture Loan Scheme.

I am proud of the rapid expansion of HBL Zarai Services Limited. In 2025, HZSL supported over 9,000 farmers across 374,479 acres and expanded integrated services across Sindh and Punjab. The addition of veterinary services is further strengthening the farming ecosystem.

Customer Experience as a Core Commitment

Our commitment to service sustains the trust placed in us.

In 2025, Customer Banking delivered another standout year. The lending book reached Rs 177 billion. We issued over 90,000 new credit cards, approximately 50% booked digitally, while the spending throughput was up by 27% to over Rs 400 billion.

The Bank opened 75 new branches overall. The significant expansion, responding to evolving customer preferences, has resulted in 200 additional Islamic banking branches, both new and converted. This brings our Islamic banking network to 608 branches, 35% of HBL's total footprint.

We operate Pakistan's largest POS network with 40,000 devices across more than 250 cities, with throughput rising 32% to Rs 604 billion, over 26% of national POS volume. In Personal Loans and Ready Cash, we hold a 39% market share, with strong fresh disbursements. Auto financing rebounded, and here we increased our market share to 17%. Finally, HBL Prestige now spans to 19 cities and 56 lounges; our newly launched Premium segment scaled rapidly to 133,000 clients, generating Rs 386 billion in deposits.

Digital Banking, Expanding Inclusion

Nearly 90% of transactions in HBL now flow through our digital channels. With over 5 million users, HBL Mobile drives 45% of digital activity and enabled nearly 1.4 billion transactions in 2025. WhatsApp Banking crossed 1 million users, processing more than 110 million transactions.

Konnect expanded access nationwide, facilitating collections exceeding Rs 2 trillion, while its partnership with Jubilee Insurance delivered Rs 1 billion in micro-insurance coverage, extending financial protection where it matters most.

Investing in Youth and Innovation

HBL reaffirmed its commitment to Pakistan's youth by renewing its title sponsorship of HBLPSL for Seasons 11 and 12, extending a milestone twelve-year partnership. Through sport, we continue to engage young people and bring communities together across Pakistan.

The HBLPSL FanTunes campaign, Pakistan's first large-scale AI-enabled fan platform, brought thousands of young creators into the national conversation and inspired tens of thousands of fan creations, generating 144 million views nationwide.

HBL also strengthened its ongoing partnerships with leading academic institutions. At IBA, our first Agri Hackathon encouraged students to develop innovative solutions for Pakistan's agriculture sector, while opening pathways to our talent programs.

Expanding Opportunity for Women

HBL continues to expand financial access for women across Pakistan. Today, we serve 5.3 million women account holders, including 1.1 million through our flagship program, HBL Nisa. In 2025, nearly half of all new accounts were opened through this initiative, generating Rs 33 billion in deposits and broadening access to financial services.

During the year, we also doubled gender-aligned capital for climate-affected women and women-led SMEs.

We are equally committed to strengthening women's representation within the organization. Women now hold five board positions in the HBL Group, and represent 29% of the Executive Leadership Team, including the Chairperson position of the Microfinance bank. Leadership programs

this year also boosted women's representation in branch leadership by 20%. HBL firmly remains on course to grow overall gender diversity to 25% by 2027.

Strengthening Resilience, Protecting Communities

In 2025, despite severe rains and flooding across Pakistan, HBL Microfinance Bank demonstrated notable resilience. The Bank reinforced its risk framework through a landmark US

)80 million risk-sharing agreement with the International Finance Corporation (IFC), ensuring continued credit flow to clients during external shocks. It also partnered with SUPARCO to launch Pakistan's first satellite-enabled agricultural lending initiative. In a major industry milestone, the Bank surpassed Rs 100 billion in its loan portfolio.

Beyond banking, the HBL Foundation deployed Rs 889 million across healthcare, education, and community development. Our people also gave their time to community service, planting nearly 12,000 trees and organizing blood drives across 12 cities, reinforcing HBL's culture of giving back.

Refreshed Identity, Reinforced Values

HBL's Brand Refresh marks evolution, not reinvention. The HBL wordmark remains, preserving decades of trust, while a refined design, rooted in heritage and precision, is now complemented by a Light Lemon-Yellow accent alongside our signature Turquoise. As it rolls out across branches and digital platforms, the unified visual presence signals clarity, confidence, and forward momentum.

This refreshed identity is guided by four principles that shape how we lead and serve: Forging Ahead, Progressing Together, Accelerating Towards the Future, and Shared Prosperity.

Our Employee Value Proposition, اینھچکںیرک, captures our spirit: innovate boldly, embrace change, and build what's next.

As we go forward with this renewed identity, we remain focused on empowering people, growing businesses, and creating opportunities.

In closing, I would like to express my sincere gratitude to our clients, employees, shareholders, and partners for their continued trust and support. Together, we will continue to

build a future that is inclusive, client-focused, and prosperous for all.

Thank you for being a part of this journey with us.

DIRECTORS' REPORT 2025

On behalf of the Board of Directors, we are pleased to present the Consolidated Financial Statements for the year ended December 31, 2025.

Macroeconomic Review

Pakistan's economy in FY'25 transitioned from achieving stability to nascent growth, supported by a turnaround in the Industrial sector amid the unfolding impact of policy rate reductions. FY'26 has carried forward a more broad-based growth momentum. The Large-Scale Manufacturing (LSM) Index grew by 6.0% in 5MFY'26, as most major sectors posted an increase in output. This improvement was also reflected in the HBL Pakistan Manufacturing PMI which, following a temporary flood-related setback, rebounded above the neutral 50.0 mark in Nov'25. The outlook for the services sector has also improved with high frequency indicators on an upward trajectory. Headline inflation inched up to 5.8% in Jan'26, led by an increase in food prices; average inflation for 7MFY'26 stands at 5.2%, within SBP's FY'26 forecast range of 5 - 7%.

CPI (% Y/Y)

Policy Rate (%)

23.1%

22.0%

20.5%

19.5%

20.7%

17.5%

15.0%

17.3%

12.6%

13.0% 12.0% 12.0%

11.8%

9.6%

11.1%

6.9%

11.0%

11.0% 10.5%

7.2%

4.9%

5.8%6.2%

5.6%

2.4%

4.1%

1.5%

3.5%

4.1%

0.7%0.3%

6.1% 5.8%

3.2% 3.1%

28.3%

Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25

Jan-26

The trade deficit for H1FY'26 widened by 36.6% to US $15.8 billion. A surge in domestic demand, resulting from a more benign rate environment, has led to a 12.3% YoY increase in imports. Exports, on the other hand, declined by 5.0%, primarily due to a sharp decline in rice exports, while export of value-added textiles remained resilient. The sizeable trade deficit was cushioned by strong momentum in remittances, which rose by 10.6% to US $19.7 billion. However, the higher trade gap resulted in a Current Account deficit of US $1.2 billion compared to a US $1.0 billion surplus in the same period last year.

SBP Reserves Commercial Banks

4.7

4.8 4.7 4.8 4.7

4.7 4.5

4.1

4.7

4.3

4.2

4.6

4.6 4.5

4.6

4.7

4.7

4.5

4.4 4.5 4.7

14.5 14.3 14.3 14.2 14.5 14.6

16.1

12.0 11.7

11.5

8.2

8.0 8.0

9.1 9.1 9.4 9.2

9.4

10.7 11.2

10.3

Jan'24

Feb'24

Mar'24

Apr'24

May'24

Jun'24

Jul'24

Aug'24

Sep'24

Oct'24

Nov'24

Dec'24

Apr'25

May'25

Jun'25

Jul'25

Aug'25

Sep'25

Oct'25

Nov'25

Dec'25

The IMF's Executive Board approved the second review of the Extended Funded Facility (EFF) and the first review of the Resilience and Sustainability Facility in Dec'25, acknowledging policy efforts that have stabilized the economy despite global challenges and local floods. Helped by the release of the US $1.2 billion tranche, the SBP has surpassed the FX reserve target of US $15.5 billion, with reserves reaching US $16.1 billion as of Dec'25. Consequently, the Rupee remained stable, depreciating marginally by 0.6% against the US Dollar during 2025.

Equity markets continued to deliver stellar performance, with the KSE-100 posting its third consecutive year of double-digit returns, gaining 51% in 2025. Key drivers of this historic performance included the positive macroeconomic outlook, improved country ratings, and meaningful progress on the privatization agenda.

In the latest monetary policy meeting in Jan'26, the SBP kept the policy rate unchanged at 10.5%, contrary to industry expectations of continued easing. The MPC highlighted that while the inflation outlook remains as expected, core inflation had stabilized at a relatively elevated level in recent months, led by broad-based recovery in demand. Private sector lending grew marginally by 0.8% in 2025, skewed by last year's ADR tax impact, with industry advances declining by 7.1% from the Dec'24 peak; to encourage private sector

lending, the SBP reduced the average Cash Reserve Requirement for banks, by 1% to 5%. During 2025, the deposit base expanded by 23.6% while banking sector spreads widened by 26 bps, despite a cut in rates, due to lagged asset repricing.

Financial Performance

In 2025, HBL delivered its highest profit before tax of Rs 148.1 billion, 23% higher than in 2024. The growth trajectory continued, driven by excellent performance from the domestic franchise and a turnaround in results from its subsidiaries. Consequently, the Bank's profit after tax increased to Rs 66.8 billion, a growth of 16% over 2024. Earnings per share improved from Rs 39.85 in 2024 to Rs 45.48 in 2025.

Profit Before Tax (Rs Billion) Profit After Tax (Rs Billion)

148

2020 2021 2022 2023 2024 2025

67

58

58

31

36

34

114

120

77

53

62

2020 2021 2022 2023 2024 2025

HBL's balance sheet increased by 27% to Rs 7.7 trillion. The Bank's domestic deposits reached their highest level of Rs 4.7 trillion, reflecting a record increase of Rs 1.1 trillion during the year, including growth of Rs 416 billion in current accounts. HBL's total deposits grew by 27% over Dec'24, to an all-time high of Rs 5.5 trillion. HBL's industry leading loan book stood at Rs 2.1 trillion. The Bank's flagship Consumer portfolio continued to grow in double-digits, reaching Rs 177 billion. Agriculture lending remained a key priority; combined with HBL Microfinance, the Group's Agriculture portfolio was over Rs 100 billion.

The Bank's net interest income grew 12% to Rs 276 billion, despite significant monetary easing throughout the year, which lowered the policy rate by 250 bps. This was supported by volumetric growth of ~Rs 1 trillion in the average domestic balance sheet, including an increase of Rs 268 billion in average current accounts, which led to a reduction of 527 bps in the deposit costs. HBL's non-fund income of Rs 86 billion was driven by an excellent performance from the Treasury business, positive contributions from the flagship Cards business, Bancassurance, and Retail Banking. Consequently, HBL's total revenue increased to Rs 361 billion.

As part of Bank's cost optimization programme, several savings initiatives came to fruition during the year resulting in a muted growth of 4% in administrative expenses, which is lowest among peers. As a result, HBL's cost-to-income ratio improved to 55.6%. A strong recovery performance led to a flat non-performing loan portfolio during the quarter. Combined with an increase in advances, the Bank's infection ratio improved to 4.6%. Specific coverage strengthened to ~90%, with total coverage well above 100%.

Movement in Reserves

2025 2024

Rupees in million

Capital Ratios

On the back of strong results, profitability contributed 266bps to the Tier 1 Capital Adequacy Ratio (CAR). The growth in advances,

coupled with the annual refresh of Operational Risk Weighted Assets (RWAs) and Market risk, increased total RWAs by 13% to Rs

2.7 trillion. Consequently, HBL's consolidated Tier 1 CAR as at December 2025 decreased by 26 bps compared to December 2024, to 14.01%. However, the increase in revaluation reserves added to Tier II capital, increasing total CAR by 62 bps to 18.32%. Both ratios remain comfortably above regulatory requirements.

Business Overview - 2025

Building the Deposit Base

The growth in current account remained at the centre of our retail strategy. To support this strategy, the Bank has expanded its physical

presence into areas of new economic potential and has moved to a more refined client segmentation.

During 2025, the Bank opened 75 new branches, including 57 Islamic branches, expanding the Bank's reach to align with the changing demographics. Considering the increased demand for Islamic Banking, the Bank has converted 143 existing branches to Islamic banking, taking the total Islamic network to 608 branches, which now represents 35% of the branch network.

The Retail business classifies customers as Affluent, Preferred, or Mass, based on the size and nature of their relationship with the Bank. This enables the Bank to serve customers using tailored products and appropriate channels. The Affluent segment serves its ultra-high-net-worth customers through the Prestige proposition. The Prestige services were expanded to 15 regions and 19 cities across the country, with 56 lounges in operation. In addition, the implementation of non-lounge strategy has enabled serving Prestige customers through 850 regular branches nationwide. HBL's Affluent business launched the Premium Banking services in 2025 to better serve the mid-tier high-net-worth customers, which were not sufficiently differentiated in the past. The Premium proposition has reached 133,000 clients and Rs 386 billion in deposits. The Bank further created a Preferred Segment, served through regular branches, however, with a differentiated product proposition.

HBL's continued leadership in women's banking is underpinned by its unwavering commitment to inclusivity. The Bank serves more than

5.3 million women customers, including 1.1 million through its flagship HBL Nisa program, which exclusively empowers the participation of women in the financial ecosystem by providing them with a number of tailored financial solutions, including women-centric insurance coverage. In 2025, more than 50% of new account openings were channelled through the Nisa offering, along with mobilization of Rs 33 billion in incremental deposits.

HBL's Wealth Management had a year of sustained progress. The Bank's Bancassurance business strengthened its industry leadership with a market share of 37%, generating Rs 6.75 billion in premiums, a growth of 30% over the year. HBL enhanced its Investment Services to increase the coverage with a more targeted client segmentation strategy. The enhancements have resulted in an impressive growth of Rs 115 billion in Assets Under Management (AUM).

With the increased focus on trade, the Bank has established 17 Trade Centres across 6 cities, with further expansion underway to better serve its Commercial and SME clients. HBL's Retail banking will build upon the Bank's vast footprint to foster robust client relationships in this area, and enable an agile, technology-driven franchise that functions effectively in a hybrid model to deliver exceptional value to HBL's customers.

Improving Consumer Lifestyles

HBL continued to demonstrate leadership in the Consumer Banking business, closing the year with a stellar performance yet again. HBL remained the top choice of consumers in 2025, with a lending book of Rs 177 billion. HBL's credit cards dominated the market, with one out of every three Rupees spent on credit cards in Pakistan being on HBL's credit card. HBL issued over 90,000 new credit cards during the year, with more than 50% booked digitally through HBL Mobile. The portfolio increased by 29% to Rs 54 billion, and with the increase in usage, the spend grew by nearly 27% to Rs 418 billion. The Bank also positioned itself as the largest debit card issuer in Pakistan, with a total issuance of 6.4 million debit cards - one in every five debit cards in the country is an HBL debit card -

Total Card Spend (Rs Billion)

553

435

304

191

117

688

and a total spend of Rs 270 billion during the year. Combined spend on HBL's

cards surpassed Rs 680 billion, an industry first.

2020 2021 2022 2023 2024 2025

HBL further reinforced its leadership position in Personal Loans and Ready Cash, with an impressive market share of 39%. The combined portfolio reached Rs 55 billion, with Rs 43 billion worth of fresh disbursements made during the year. In line with HBL's strategic focus towards digital enablement across all channels, more than 50% of Ready Cash transactions and approximately 25% of Personal Loan bookings were made through HBL Mobile. Auto financing saw a robust recovery during the year, with market share increasing from

15% to 16.5%. The portfolio increased to Rs 47 billion, including fresh bookings of more than Rs 30 billion during the year. Home Finance demonstrated steady progress, with volumes rising to Rs 23 billion in 2025.

HBL retained its leadership position in the merchant acquiring business, operating Pakistan's largest POS network of 40,000 devices deployed in more than 250 cities. HBL's SmartPOS terminals continue to be the preferred choice of merchants by offering them real-time transaction insights. POS throughput grew by 32% to reach Rs 604 billion, accounting for more than 26% of the country's POS volume. In accordance with the national agenda of digitization, HBL's efforts to expand beyond major urban centres have resulted in smaller

POS Spend (Rs Billion)

459

348

264

181

118

604

towns and cities contributing to nearly 16% of HBL's total POS spend.

2020 2021 2022 2023 2024 2025

Supporting Small Businesses

As part of HBL's strategic focus to fuel Pakistan's economic growth, HBL continued to set the industry benchmark by extending financing to over 6,000 new SME clients. This led to a record growth in lending, with advances reaching Rs 152 billion. In 2025, HBL launched Business debit cards to strengthen its partnership with the SMEs and equip them with a seamless payment solution for their day-to-day transactions. The initiative underscores HBL's commitment to enabling digital financial inclusion and creating opportunities for small businesses.

HBL's efforts to support small businesses resulted in significant growth in Retail Trade which surpassed a historic milestone of US $1.6 billion. In addition, Supply Chain Financing delivered a growth of 35% with gross advances exceeding Rs 17 billion, furthering HBL's strategic advancement towards the SME sector.

The Bank continued to support SBP-related schemes for SMEs, with gross advances under these initiatives exceeding Rs 23 billion in 2025. HBL remained the pioneer of non-collateralized lending in Pakistan, with its flagship product Asaan Finance providing cash-flow based, collateral-free lending to over 6,000 SMEs across the country. Under the Asaan Finance offering, HBL has disbursed Rs 16 billion worth of collateral-free financing till date.

Agriculture - Our Key Priority

HBL remained committed to supporting the agriculture sector with a lending portfolio of Rs 106 billion, backed by new disbursements of Rs 49 billion made this year. The Bank accelerated green financing for solar-powered tube wells, the solarization of more than 2,300 farms, and the deployment of High-Efficiency Irrigation Systems. The

Bank established strategic partnerships with leading agritech firms, delivering feedback on crop health to the farmers. HBL's commitment to protecting farmers against climate volatility resulted in robust risk-mitigation offerings such as Area Yield Index Insurance, making industry-leading payouts exceeding Rs 23 million in 2025. These interventions enabled farmers to better withstand climate adversities and secure their yield outcomes.

HBL in collaboration with the State Bank of Pakistan disbursed Rs 3.4 billion under the Prime Minister's Youth Business & Agriculture Loan Scheme. The Bank also conducted 850 literacy sessions through its "Kisaan Ki Awaz" platform, engaging nearly 9,000 farmers and onboarding over 2,000 unbanked individuals. Under the Government's "Zarkhez - Asaan Digital Zarai Qarza" initiative, HBL offered fully digital loans for small and marginalized farmers, enabling ease and agricultural sustainability.

Agri Portfolio (Rs Billion)

HBL HMFB

110 104 106

74

53

44

47

55

21

45

33

60

34

41

52

57

59

G7

2020 2021 2022 2023 2024 2025

Building upon the success of its agriculture awareness programs, HBL collaborated with the Institute of Business Administration (IBA) to host the first-ever 'Hackathon' - an event powered by the Bank's University Alliance Program, encouraging the students to address challenges faced by Pakistan's agricultural sector. It marked the unveiling of a jointly developed 'Agri Case Study' based on Pakistan's dairy sector. The winning team was awarded a 'Golden Pass' to 'HBL The League Internship and Management Trainee Program', along with a cash prize.

HBL Zarai Services Limited

HBL Zarai Services Limited (HZSL) remained at the forefront in shaping the Pakistan's agricultural landscape. With its integrated agriculture services model, HZSL acts as an Agri intermediatory and provides end-to-end services to farmers including quality inputs, agronomy advisory, storage solutions and assistance in sale of produce through robust market connections. HZSL is a transformative force contributing to agricultural productivity, financial inclusion, and rural economic growth in Pakistan.

In 2025, HZSL served 374,479 acres of farmland, supporting 9,175 farmers, resulting in tangible improvement in livelihoods of hundreds of farming households across key agricultural regions of Pakistan. HZSL actively dealt in five major crops with a cumulative volume of more than 18,000 metric tons. These were sourced directly from farmers at market competitive rates with timely payments. Geographic expansion remained a key focus, with the establishment of the first service centres in Sindh in Dad Laghari and Shikarpur.

Recognizing the vital contribution of livestock to rural livelihoods, HZSL launched its Veterinary Services. Both male and female veterinary doctors were deployed to provide essential services including but not limited to artificial insemination, vaccinations, basic surgical interventions, laboratory diagnostics and other livestock health solutions. Furthermore, HZSL also partnered with banks to introduce debit and credit card-based discount facilities for farmers, a first in the sector, facilitating transactions exceeding a billion rupees.

During the year, HZSL remained committed to enhancing its operational capabilities and driving innovation across the value chain. The Company successfully deployed a robust ERP system, creating a unified technological backbone for expanding its operations. To elevate quality assurance standards, HZSL established state-of-the-art, ISO-compatible crop testing laboratories at every procurement location.

Building the Nation

HBL sustained its leadership in Corporate Banking during 2025, anchored by prudent capital deployment and a profitability driven operating strategy. Average advances remained broadly stable at Rs 900 billion, while the average deposit base expanded to Rs 525 billion, supported by strong growth in current accounts.

Corporate Banking continued to focus on a derisked, better priced, and more diversified asset portfolio, translating into strong income growth and improved risk adjusted returns. Relationship teams maintained a strong focus on service delivery, ensuring timely execution, responsiveness, and a consistent client experience across the franchise.

HBL's leadership in Corporate Banking was reaffirmed internationally, with Euromoney naming HBL as Pakistan's Best Bank for Corporates for the second consecutive year, recognizing the Bank's strong execution capabilities, client centric approach, and sustained contribution to Pakistan's corporate sector and economic development.

HBL's Investment Banking reaffirmed its position as the premier partner of choice, supporting clients with tailored advisory services and innovative solutions. During the year, the Bank successfully closed 23 deals and continued to support customers through executing multiple 'first of its kind' transactions. The Bank has successfully concluded Pakistan's first project financing for a greenfield data centre project, the country's first greenfield Electric Vehicle (EV) assembly plant, and a soda ash project with significant reliance on indigenous raw materials. HBL also played an instrumental role in supporting the Government objective of resolving power sector circular debt, concluding the largest syndicated transaction in the country's history with a Governmental entity through structuring and leading a syndicate to raise Rs 1.23 trillion.

HBL Investment Banking was once again at the forefront of corporate advisory, leading one of the largest M&A deals in the country. During the year, the Bank demonstrated exceptional performance crossing the Rs 100 billion milestone in capital market issuances. These issuances included the first ever Initial Public Offering (IPO) of a Corporate Unsecured Short Term Sukuk, targeted towards retail investors, attracting a record breaking 650+ investors. Furthermore, the Bank received 14 accolades from international and domestic publications during the year including Euromoney, Global Finance and The Asset Triple A.

The Cash Management business delivered strong performance, with total throughput increasing by Rs 4.4 trillion to Rs 23.8 trillion, recording a growth of 23% over the year. HBL made significant upgrades to the HBL Pay Business Banking platform, and launched a mobile application customized for business customers. Targeted efforts led to an increase in customer adoption of digital channels; with significant transactions including tax payments being carried out digitally. The Bank has also successfully rolled out transaction banking services in the Maldives with plans to expand into more international markets in 2026. HBL was awarded Pakistan's Best Cash Management Bank 2025 by Euromoney, reflecting strong financial performance and an enhanced digital customer experience.

HBL maintained leadership in Employee Banking services by offering end-to-end digital payrolls and robust banking solutions. With the Bank serving over 2.5 million payroll accounts, employers processed over 28 million payroll transactions, with a financial value of Rs

1.8 trillion during the year. Digital channels accounted for 97% of withdrawals, reflecting Bank's successful migration to digital platforms.

The Treasury business delivered an excellent performance in 2025. Amid declining interest rates, a disciplined approach to the investment book has resulted in increase in Bank's net interest income over the previous year. Trading activity was strong across the board, with FX, Equities and Fixed Income trading revenues showing sustained growth. HBL's Treasury continued to deepen the move towards digitization: volumes on HBL Infinity® (the Bank's FX platform) surged by 37% to US $2.6 billion, while volumes on HBL Symphony® (the Bank's proprietary fixed income portal) increased further to Rs 3.94 trillion, up 11%.

Digital - The Way Forward

HBL is consistently driving change in the digital landscape of Pakistan. Enhanced efforts to digitally empower the journey to financial inclusion has resulted in nearly 90% of all financial transactions being processed through HBL's digital channels.

With a growing user base of more than 5 million, HBL Mobile is leading the way to improved digital access and customer centricity, accounting for 45% of the Bank's total digital transactions. Continuous enhancement in features, tailored to meet the growing customer needs, has led to a 23% rise in the number of transactions, enabling HBL to process nearly 1.4 billion digital transactions and service requests in 2025. Increased acceptance of digital platforms and the trust of HBL customers in the Bank's service quality has resulted in a 43% growth in the total value of financial transactions, reaching Rs 11 trillion. HBL has proactively leveraged the large user base and customer-friendly interface of HBL Mobile to enable digital onboarding of the most sought-after consumer products such as Credit Cards, Personal Loans and Ready Cash, enhancing ease and convenience for HBL customers.

HBL has achieved a milestone of serving 1 million users and record processing of over 110 million transactions through its WhatsApp Banking channel, which is a one-of-a-kind aggregator platform, seamlessly integrated across all digital and conventional channels, providing access to over 6,500+ billers.

To maximize Bank's data capabilities, significant advancements were made during the year to expand data in the Data Lake. In 2025, focus remained on streamlining regulatory compliance via automation of reporting and enabling centralized KYC reviews. Data Lake also allowed HBL to upgrade the mobile banking experience for end users by facilitating quicker approval of loans booked through the app.

Konnect by HBL - Serving the Underbanked

Konnect reinforced its commitment to empower financial inclusion across the country, with a multifaceted approach to providing financial services away from branches, by enabling the Bank to provide basic banking services to customers through neighbourhood shops and businesses. Konnect's B2B cash management services remained pivotal in serving the underbanked and unbanked population of Pakistan, facilitating collections of over Rs 2 trillion till date under the on-the-go collection services which operate round the clock to mitigate the risk of carrying cash.

To leverage the cross-selling synergy within the Group, Konnect partnered with Jubilee Insurance to provide micro-insurance facility to its customers resulting in premiums of Rs 1 billion during the year towards health and life coverage. Additionally, in a strategic alliance with HBL Microfinance Bank, Konnect has enabled seamless loan collection and facilitated disbursement of funds to more than half a million beneficiaries through HBL Microfinance under the Benazir Income Support Program.

Konnect's long-standing alliance with the Government for cash collection and disbursement strengthened to over 66 government institutions nationwide. The partnership has resulted in disbursement of Rs 156 billion, in 2025, to the beneficiaries of Benazir Income Support Program, and various social payments to farmers under provincial government programs. With the goal of enabling a digitally connected economy, Konnect will build on its strategic partnership with the government to reduce dependency on cash by switching to wallet-based disbursements, processing of digital loans and collaborating with tech-enabled platforms like 1LINK for a seamless digital transaction experience.