Transmission of Half Yearly Financial Statements for the period ended June 30, 2026

MCB Bank Limited

Company Secretary Office 6th *loor. MCB Builaing,

13-Main Gu!berg, Jail Road

Lahore Pak stan

T: •92 42 3??41998-9

E: corporate.affa rs nJcla com.pk

PSX-100(5F)2026/37

August 25, 2026

General Manager

Pakistan Stock Exchange Limited Stock Exchange Building

Stock Exchange Road Karachi.

Dear Sir,

Sub: Transmission of Half Yearly Financial Statements for the period ended June 30, 2026

We have to inform you that the Half Yearly Financial Statements of the Bank for the period ended June 30, 2026 have been transmitted through PUCARS and are also available on Bank's website.

You may please inform the TRE Certificate Holders of the Exchange according v

Yours sincerely,

Farid Ahmad Company Secretary

Encl: As above

Registered Office: MCB Building. 15 Main Gulberg, Jail Road, Lahore. Pakistan

U : 92 42 111 000 622 T : +92 42 3604 1999-9 E : info%ircb.com.ok www.mcb.com.pk

MCB Bank Limited

Corporate Profile Board of Directors:

Mian Mohammad Mansha Mr. Muhammad Tariq Rafi Mian Umer Mansha

Mrs. Iqraa Hassan Mansha Mr. Muhammad Ali Zeb Mr. Yahya Saleem

Mr. Salman Khalid Butt Mr. Shahzad Hussain Mr. Masood Ahmed Puri Shaikh Muhammad Jawed

Mr. Norzulkarnien bin Nor Mohamad Dr. Mohd Zaini bin Aris Mr. Muhammad Nauman Chughtai

Audit Committee:

Mr. Shahzad Hussain Mian Umer Mansha Mr. Muhammad Ali Zeb

Mr. Norzulkarnienbin Nor Mohamad

Chairman Director Director Director Director Director Director Director Director Director Director

Director President & CEO

Chairman Member Member Member

Bank for Life

Chief Financial Officer: Company Secretary:

Auditors:

Legal Advisors: Registered /Principal Office: Contact us:

Registrar's and Share Registration Office(s):

Mr. Anjum Javed Mr. Farid Ahmad

M/s. KPMG Taseer Hadi & Co. Chartered Accountants

M/s. Khalid Anwer & Co. Advocates & Legal Consultants

MCB Building, 15-Main Gulberg, Jail Road, Lahore, Pakistan.

UAN: + 92 42 111 000 622

E-mail: investor.relations@mcb.com.pk Visit us: https://www.mcb.com.pk

Head Office: M/s. THK Associates (Pvt.) Limited Plot No. 32-C, Jami Commercial Street 2, D.H.A., Phase VII, Karachi, Pakistan.

Branch Office: M/s. THK Associates (Pvt.) Limited Office No. 309, 3rd Floor, North Tower, LSE Building,

19-Shahrah-e-Aiwan-e-Iqbal,

Lahore, Pakistan. 3

On behalf of the Board of Directors, we are pleased to present the financial statements of MCB Bank Limited (MCB) for the half year ended June 30, 2026.

Performance Review

On a standalone basis, the profit before and after taxation for the half year ended June 30, 2026 together with appropriations is as under:

Rs. in Million

Profit Before Taxation

Taxation

Profit After Taxation

Un-appropriated Profit Brought Forward

Surplus realized on disposal of investments in equity instruments through FVOCI - net of tax

Transfer in respect of incremental depreciation from surplus on

revaluation of property & equipment to un-appropriated profit-net of tax

Profit Available for Appropriation Appropriations:

Statutory Reserve

Final Cash Dividend at Rs. 9.0 per share - December 2025 First Interim Cash Dividend at Rs. 9.0 per share - March 2026 Total Appropriations

Un-appropriated Profit Carried Forward

MCB reported a Profit Before Tax (PBT) of Rs. 55.1 billion and a Profit After Tax (PAT) of Rs. 26.5 billion, translating into Earnings Per Share (EPS) of Rs. 22.34. On a consolidated basis, PBT and PAT stood at Rs. 58.8 billion and Rs. 28.1 billion respectively.

Total income for the half year stood at Rs. 93.9 billion, reflecting a 6% year-on-year increase. The improvement was primarily driven by net markup income, which rose to Rs. 75.3 billion (H1'25: Rs. 71.3 billion), supported by a higher low-cost deposit base and effective yield optimization despite the relatively lower average policy rate compared to last year.

Non-markup income rose to Rs. 18.7 billion (H1'25: Rs. 17.5 billion) representing a 7% year-on-year increase. Fee and commission income increased by 21% year-on-year to Rs. 11.9 billion, supported by sustained momentum in the Bank's digital banking franchise and higher transaction volumes. Within this segment, card-related income increased by 13%, branch banking fee income rose by 5% on the back of improved customer engagement and cross-selling initiatives, while consumer banking fee income recorded a robust 27% increase, reflecting higher customer activity and greater uptake of consumer financing products. Foreign exchange income and dividend income further contributed Rs. 4.1 billion and Rs.

2.1 billion respectively to the non-markup income base.

Operating expenses increased by 9% year-on-year, reflecting continued investment in technology, human capital, and brand development to strengthen the Bank's long-term growth platform. Despite these investments, the Bank maintained a healthy cost-to-income ratio of 39.20%, underscoring disciplined cost management while continuing to enhance operational efficiency.

On the balance sheet side, total assets of the Bank increased to Rs. 3.430 trillion (YE'25: Rs. 3.247 trillion). Gross Advances registered growth of Rs. 67 billion (9%), reflecting improved credit uptake. The investment portfolio stood at Rs.

2.067 trillion (YE'25: Rs. 1.947 trillion).

Asset quality remained satisfactory, with non-performing loans (NPLs) reported at Rs. 50.3 billion. The infection and coverage ratios improved to 6.26% and 93.13% respectively. The Bank continues to focus on proactive management of its delinquent portfolio through targeted recovery efforts, timely resolution of non-performing exposures, and disciplined measures to contain credit losses.

Total deposits of the Bank stood at Rs. 2.604 trillion, with the current account mix improving to 55% (YE'25: 54%), reinforcing the Bank's strength in low-cost deposit mobilization. This favorable mix, along with the lower interest rate environment, reduced the domestic cost of deposits to 4.43% (H1'25: 5.23%). The Bank reported Return on Assets (ROA) of 1.59% and Return on Equity (ROE) of 21.49%.

MCB Bank maintained its position as one of the leading players in the home remittance market, with a market share of 10.38%, processing USD 2.27 billion in remittance inflows during the period. Leveraging its extensive branch footprint and expanding digital channels, the Bank continued to support the State Bank of Pakistan's financial inclusion and formal remittance initiatives, contributing meaningfully to foreign exchange inflows and overall economic stability.

The Bank's capital and liquidity positions remained robust, with the Capital Adequacy Ratio (CAR) standing at 19.65% and the Common Equity Tier-1 (CET1) ratio at 14.93%, well above minimum regulatory requirements. Liquidity buffers remained strong, reflected in a Liquidity Coverage Ratio (LCR) of 233.41% and a Net Stable Funding Ratio (NSFR) of 161.14%.

The Board declared a second interim cash dividend of Rs. 9.00 per share (90%), in addition to the 90% dividend paid earlier, bringing the total cash dividend for the half year ended June 30, 2026 to 180%.

Looking ahead, the Bank remains well-positioned to deliver sustainable growth, supported by a strong capital base, ample liquidity, diversified revenue streams, and disciplined risk management, while continuing to focus on operational efficiency and customer-centric innovation.

Ratings

Pakistan Credit Rating Agency re-affirmed credit ratings of MCB at "AAA / A1+" for long term and short term respectively, through its notification dated June 23, 2026.

Economic Review

The global macroeconomic environment in the first half of 2026 was shaped primarily by three forces, the outbreak and evolution of the US-Iran war, a sharp reversal in monetary policy expectations across advanced economies, and sustained structural optimism about artificial intelligence and digital infrastructure. These factors lifted the geopolitical risk premium and produced sharply divergent outcomes across asset classes over the half-year.

The US-Iran tensions escalated from a prolonged stand-off into open military conflict early in H1'26, centered on Iran's nuclear program and culminating in the temporary closure of the 'Strait of Hormuz'. The conflict had a significant impact on global financial markets. Oil and LNG prices surged as investors priced in the loss of a major share of supply transiting the Strait, marking a sharp disruption in energy markets. A ceasefire framework took hold by mid-year, but subsequent flare-ups underscored how fragile that de-escalation remained, with volatility persisting even as markets began to normalize.

Monetary policy in advanced economies moved in the opposite direction from what had been anticipated at the start of the year. Rather than continuing a shift toward a more neutral, easing-oriented stance, several key central banks paused or reversed course as energy-driven inflation reasserted itself, with policymakers increasingly signaling that further tightening, rather than cuts, could not be ruled out. This pushed global bond yields higher as investors priced out rate cuts, tightening financial conditions and raising external financing costs for emerging markets.

At the same time, structural optimism about artificial intelligence (AI) and digital infrastructure continued to underpin global risk appetite. Strong earnings and sustained investment in data centers, semiconductors, and cloud-related services drove major equity indices to fresh highs even as the geopolitical backdrop deteriorated, helping offset the drag from energy-driven inflation and softer global trade. This AI-driven growth narrative became an increasingly dominant pillar of market performance over the half-year, though it also produced growing concentration risk, with gains increasingly reliant on a narrow set of technology-intensive names.

Pakistan's real GDP grew provisionally by 3.70% in FY26, up from 3.18% in FY25, with agriculture, industry, and services growing by 2.89%, 3.51%, and 4.09% respectively. The size of the economy rose to 452.1 billion dollars, with per capita income increasing to 1,901 dollars from 1,824 dollars in FY25. As anticipated, economic activity recorded some slowdown in Q4 of FY26 in the wake of the Middle East conflict, the surge in global energy prices, and austerity measures taken by the Government. However, high frequency indicators, including automobile sales, cement dispatches, and business sentiment, suggest some recovery in economic activity in June. Accordingly, the MPC expects real GDP growth to be in the range of 3.5 - 4.5 percent during FY27. Moreover, Pakistan's sovereign credit rating was upgraded to "B" by Standard & Poor's.

Inflation rose sharply in H1'26. National CPI increased from 5.8% year-on-year in January to a peak of 11.7% in May, before easing to 11.1% in June. FY26 average CPI inflation stood at 7.05%. As of July 2026, CPI stood at 9.2% year-on-year.

The current account posted a deficit of $139 million in FY26, close to the lower bound of the projected range for the year. Workers' remittances rose 8.6% to a record $41.6 billion, from $38.3 billion in FY25. These developments helped SBP strengthen its FX reserves and significantly reduce forward liabilities. SBP-held reserves closed at $18.4 billion in FY26.

Fiscal consolidation continued to anchor the macroeconomic framework. The Government achieved a primary surplus for the third consecutive year, with FY26 estimated at 2.5% of GDP and the FY27 Budget targeting 2.0% of GDP. The FBR successfully achieved its revised FY26 tax collection target of PKR 13 trillion.

The SBP's Monetary Policy Committee (MPC) increased the policy rate by 100 basis points to 11.5% in April, citing rising geopolitical tensions and elevated inflation risks. As of July 2026, the MPC unanimously decided to keep the policy rate unchanged at 11.5% citing the improvement in the macroeconomic outlook despite geopolitical risks.

Future Outlook

Global growth is expected to remain modest into H2 2026, with the US-Iran conflict's de-escalation in mid-year offering only a fragile reprieve. Advanced-economy central banks, having shifted toward a more hawkish bias through the first half as energy prices pushed inflation higher, are likely to remain cautious and data-dependent rather than resume the easing path anticipated at the start of the year.

For Pakistan, the outlook depends on policy continuity and reform implementation under the IMF-supported program, alongside how durably the Middle East de-escalation holds. SBP's own guidance points to growth strengthening further into FY27, building on FY26's momentum, though officials have noted that growth would likely have been higher in FY26 absent the conflict's disruption in the second half of the fiscal year. Inflation is expected to remain elevated in the near term before gradually easing, with risks skewed by the pace of any renewed geopolitical escalation, upcoming energy tariff adjustments, and weather-related food price pressures. On the external side, continued reserve accumulation and record remittances are expected to persist into FY27. With the policy rate having ended H1'26 higher than it began, following the year's sole hike in April, the SBP has since held the rate steady at 11.5% through its June and July reviews, judging the current monetary stance appropriate to guide inflation back toward the 5-7% target range over the medium term.

Appreciation and Acknowledgements

The Board of Directors of MCB Bank Limited would like to extend their sincere gratitude towards the Government of Pakistan, the State Bank of Pakistan, the Securities & Exchange Commission of Pakistan and other regulatory bodies for their continued support and guidance, all shareholders and customers of the Bank for their trust, and our employees for their continuous dedication and commitment.

For and on behalf of the Board of Directors,

President & CEO MCB Bank Limited August 06, 2026

MCB Bank Limited MCB Bank Limited

Bank for Life

9

Introduction

We have reviewed the accompanying unconsolidated condensed interim statement of financial position of MCB Bank Limited ("the Bank") as at 30 June 2026 and the related unconsolidated condensed interim statement of profit and loss account, unconsolidated condensed interim statement of comprehensive income, unconsolidated condensed interim statement of changes in equity, and unconsolidated condensed interim statement of cash flows, and notes to the unconsolidated condensed interim financial statements for the half year then ended (here-in-after referred to as the "interim financial statements"). Management is responsible for the preparation and presentation of these interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these interim financial statements based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

Other matter - Figures for three months' period ended 30 June 2026

Pursuant to the requirement of Section 237 (1) (b) of the Companies Act, 2017, only cumulative figures for the half year, presented in the second quarter accounts are subject to a limited scope review by the statutory auditors of the Bank. Accordingly, the figures of the unconsolidated condensed interim statement of profit and loss account and unconsolidated condensed interim statement of comprehensive income for the quarter then ended 30 June 2026 have not been reviewed by us.

Other matter - Comparative Information

The unconsolidated condensed interim financial statements of the Bank as at and for the half year ended 30 June 2025 and the annual unconsolidated financial statements of the Bank as at and for the year ended 31 December 2025, were reviewed and audited by another auditor who expressed an unmodified conclusion and opinion on those unconsolidated condensed interim financial statements and annual unconsolidated financial statements on 13 August 2025 and 06 March 2026, respectively.

The engagement partner on the audit resulting in this independent auditor's report is M. Rehan Chughtai.

As at June 30, 2026

Note Unaudited June 30, 2026

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

Audited December 31, 2025

Lahore

Date: 24 August 2026

UDIN: RR202610183IPxa6Clig

KPMG Taseer Hadi & Co. Chartered Accountants

Anjum Javed Muhammad Nauman Chughtai Main Umer Mansha Shahzad Hussain Muhammad Ali Zeb

For The Half Year Ended June 30, 2026

Quarter Ended Half Year Ended

For The Half Year Ended June 30, 2026

Quarter Ended Half Year Ended

Note

April 01 to

June 30, 2026

April 01 to

June 30, 2025

January 01 to

June 30, 2026

January 01 to

June 30, 2025

April 01 to

June 30, 2026

April 01 to

June 30, 2025

January 01 to

June 30, 2026

January 01 to

June 30, 2025

Mark-up / return / interest earned 27

Mark-up / return / interest expensed 28

Net mark-up / interest income

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

74,305,021

38,142,861

36,162,160

144,144,631

72,798,372

71,346,259

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

Profit after taxation for the period 13,674,336 13,493,833 26,475,031 27,305,704

Other comprehensive income / (loss)

(8,359,876)

354,423

354,423

18,469,578

8,654,582

5,446,508

5,446,508

27,775,426

Items that may be reclassified to statement of profit and loss account in subsequent periods:

Effect of translation of net investment in foreign branches

Movement in surplus / (deficit) on revaluation of debt investments through FVOCI - net of tax

NON MARK-UP / INTEREST INCOME

Fee and commission income 29

Dividend income Foreign exchange income Income from derivatives

Gain / (loss) on securities - net 30

Net gains / (loss) on derecognition of financial assets measured at amortised cost Other income 31

Total non-markup / interest Income

Total income

NON MARK-UP / INTEREST EXPENSES

Operating expenses 32

Workers Welfare Fund

Other charges 33

Total non-markup / interest expenses

Profit before credit loss allowance

Credit loss allowance and write offs - net 34

PROFIT BEFORE TAXATION

Taxation 35

PROFIT AFTER TAXATION

Basic and diluted earnings per share 36

8,314,133

44,476,293

17,511,830

26,964,463

(1,798,914)

28,763,377

15,269,544

13,493,833

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

22.34

11.39

17,521,633

88,867,892

35,138,163

53,729,729

(4,336,326)

58,066,055

30,760,351

27,305,704

23.04

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

Movement in surplus / (deficit) on revaluation of equity investments through FVOCI - net of tax

Total comprehensive income

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

11,439,930

(1,857,815)

(1,857,815)

23,075,948

10,443,099

172,698

172,698

37,921,501

11.54

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

Anjum Javed Muhammad Nauman Chughtai Main Umer Mansha Shahzad Hussain Muhammad Ali Zeb Anjum Javed Muhammad Nauman Chughtai Main Umer Mansha Shahzad Hussain Muhammad Ali Zeb

Property and equipment / non-banking assets

Investments

Non-distributable Exchange translation capital reserve reserve

Share premium

For The Half Year Ended June 30, 2026

Anjum Javed

Muhammad Nauman Chughtai

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

Main Umer Mansha

Shahzad Hussain

Muhammad Ali Zeb

of property and equipment to unappropriated profit - net of tax

Interim cash dividend at Rs. 9.0 per share - March 31, 2026

For details of dividend declaration and appropriations, please refer note 41 to these unconsolidated condensed interim financial statements. For details of reserves, please refer note 23 to these unconsolidated condensed interim financial statements.

For The Half Year Ended June 30, 2026

Half Year Ended

Note

January 01

January 01

to June 30, 2026

to June 30, 2025

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

CASH FLOW FROM OPERATING ACTIVITIES

Profit before taxation Less: Dividend income

58,066,055

(2,577,655)

55,488,400

Adjustments:

Net mark-up / interest income Depreciation on property and equipment Depreciation on right-of-use assets

Depreciation on non-banking assets acquired in satisfaction of claims Amortization

Credit loss allowance and write offs - net Gain on sale of property and equipment - net

Finance charges on lease liability against right-of-use assets Workers Welfare Fund

Reversal for defined benefit plans - net

Gain on termination of lease liability against right-of-use assets Unrealized loss / (gain) on revaluation of investments classified as FVTPL

32

32

32

32

34

31

28

31

30

(71,129,506)

(15,641,106)

(Increase) / decrease in operating assets Lendings to financial institutions Securities classified as FVTPL Advances

Others assets (excluding advance taxation)

311,851,605

Increase / (decrease) in operating liabilities Bills Payable

Borrowings Deposits

Other liabilities (excluding current taxation)

685,619,293

135,238,734

(107,731,636)

(136,884)

(37,558,368)

971,641,638

Mark-up / interest received Mark-up / interest paid Defined benefits paid Income tax paid

Net cash generated from operating activities

CASH FLOW FROM INVESTING ACTIVITIES

Net investment in securities classified as FVOCI

Net divestment / (investment) in securities classified as amortized cost Dividends received

Investments in property and equipment Proceeds from sale of property and equipment Investments in Intangible assets

Proceeds from sale of non-banking assets acquired in satisfaction of claims Effect of translation of net investment in foreign branches

Net cash used in investing activities

(887,086,098)

CASH FLOW FROM FINANCING ACTIVITIES

Payment of lease liability against right-of-use-assets Dividend paid

Net cash used in financing activities

Effects of credit loss allowance changes on cash and cash equivalents

Increase in cash and cash equivalents

Cash and cash equivalents at beginning of the period

Effects of exchange rate changes on cash and cash equivalents Opening expected credit loss allowance on cash and cash equivalents

20.1

(22,488,704)

(134,860)

61,931,976

192,046,630

253,978,606

Cash and cash equivalents at end of the period

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

Anjum Javed

Muhammad Nauman Chughtai

Main Umer Mansha

Shahzad Hussain

Muhammad Ali Zeb

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

For The Half Year Ended June 30, 2026

For The Half Year Ended June 30, 2026

1. STATUS AND NATURE OF BUSINESS

   MCB Bank Limited (the 'Bank') is a banking company incorporated in Pakistan and is engaged in commercial banking and related services. The Bank's ordinary shares are listed on the Pakistan stock exchange. The Bank's Registered Office and Principal Office are situated at MCB - 15 Main Gulberg, Lahore. The Bank operates 1413 branches (2025: 1,401 branches) within Pakistan and 9 branches (2025: 9 branches) outside Pakistan (including the Karachi Export Processing Zone branch).

   3.6 Standards, interpretations and amendments to published approved accounting standards that are not yet effective

   The following new standard will be effective from the date mentioned below:

   Effective date (annual periods beginning on or

2. 2.1

   BASIS OF PREPARATION

   These unconsolidated condensed interim financial statements represent separate financial statements of MCB Bank Limited. The consolidated condensed interim financial statements of the Group are being issued separately.

   IFRS 18 - Presentation and Disclosure in Financial Statements

   1. MATERIAL ACCOUNTING POLICY INFORMATION

      after)

      January 01, 2027

      2.2

      2.3

      2.4

      In accordance with the directives of the Federal Government regarding the shifting of the banking system to Islamic modes, the State Bank of Pakistan has issued various circulars from time to time. Permissible forms of trade-related modes of financing include purchase of goods by banks from their customers and immediate resale to them at appropriate profit in price on deferred payment basis. The purchases and sales arising under these arrangements are not reflected in these unconsolidated condensed interim financial statements as such but are restricted to the amount of facility actually utilized and the appropriate portion of profit thereon.

      The unconsolidated condensed interim financial statements are presented in Pak Rupees, which is the Bank's functional and presentation currency of its primary economic environment.

      These unconsolidated condensed interim financial statements have been prepared under the historical cost convention except that certain classes of property and equipment and non-banking assets acquired in satisfaction of claims are stated at revalued amounts; investments classified at fair value through profit and loss and fair value through other comprehensive income; foreign exchange

      The material accounting policies and methods of computation adopted in the preparation of these unconsolidated condensed interim financial statements are consistent with those applied in the preparation of the audited annual unconsolidated financial statements of the Bank for the year ended December 31, 2025.

   2. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

      The basis for accounting estimates adopted in the preparation of these unconsolidated condensed interim financial statements are the same as that applied in the preparation of the unconsolidated financial statements for the year ended December 31, 2025.

   3. FINANCIAL RISK MANAGEMENT

      The financial risk management objectives and policies adopted by the Bank are consistent with those disclosed in the audited annual unconsolidated financial statements for the year ended December 31, 2025.

      contracts and derivative financial instruments are measured at fair value and net defined benefit obligations are carried at fair value of plan assets less present value of defined benefit obligations.

      Unaudited Audited June 30, 2026 December 31, 2025

3. STATEMENT OF COMPLIANCE

   1. CASH AND BALANCES WITH TREASURY BANKS

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

      4. These unconsolidated condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:

         • International Accounting Standard 34 "Interim Financial Reporting" issued by the International Accounting Standards Board (IASB) as are notified under the Companies Act 2017;

         • Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan (ICAP) as are notified under the Companies Act, 2017;

         • Provisions of and directives issued under the Banking Companies Ordinance, 1962 and the Companies Act, 2017; and

         • Directives issued by the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP).

           Whenever the requirements of the Banking Companies Ordinance, 1962, the Companies Act, 2017 or the directives issued by the SBP and the SECP differ with the requirements of IAS 34, IFRS or IFAS, the requirements of the Banking Companies Ordinance, 1962, the Companies Act, 2017 and the said directives, shall prevail.

           The State Bank of Pakistan has deferred the applicability of International Accounting Standards 40, 'Investment Property' for Banking Companies through BSD Circular No. 10 dated August 26, 2002. Accordingly, the requirements of the standard have not been considered in the preparation of these unconsolidated condensed interim financial statements.

           IFRS 10 "Consolidated Financial Statements" was made applicable from period beginning on or after January 01, 2015 vide S.R.O 633(I) / 2014 dated July 10, 2014 by SECP. However, SECP has directed through S.R.O 56(I) / 2016 dated January 28, 2016, that the requirements of consolidation under section 237 of the repealed Companies Ordinance 1984 (Section 228 of Companies Act, 2017) and IFRS 10 "Consolidated Financial Statements" are not applicable in case of investment by companies in mutual funds established under Trust structure.

           The disclosures made in these unconsolidated condensed interim financial statements have been limited based on a format prescribed by the SBP vide BPRD Circular No. 02 of 2023 dated February 09, 2023 and IAS 34 "Interim Financial Reporting". These unconsolidated condensed interim financial statements do not include all the information and disclosures required in the audited annual financial statements, and should be read in conjunction with the audited annual unconsolidated financial statements for the financial year ended December 31, 2025.

           In hand

           Local currency Foreign currencies

           With State Bank of Pakistan in Local currency current account Foreign currency current accounts Foreign currency deposit account

           With other central banks in Foreign currency current accounts

           With National Bank of Pakistan in Local currency current accounts

           Prize bonds

           Less: Credit loss allowance held against cash and balances with treasury banks Cash and balances with treasury banks - net of credit loss allowance

   2. BALANCES WITH OTHER BANKS

   Inside Pakistan

   In current account

   Outside Pakistan

   In current accounts In deposit accounts

   Less: Credit loss allowance held against balances with other banks

   39,426,882

   7,212,191

   48,514,981 6,253,970
   54,768,951
   77,588,792 8,190,483 11,332,644
   97,111,919 20,377,246 31,422,246 92,411 (455,609)
   203,317,164 88,194
   9,811,108 14,197,762
   24,008,870 (20,980)
   24,076,084

   46,639,073

   83,881,413

   5,606,778

   8,716,198

   98,204,389

   22,595,643

   22,917,504

   109,340

   (382,423)

   190,083,526

   247,620

   20,886,919

   18,800,419

   39,687,338

   (236,892)

   1. Standards, interpretations of and amendments to published approved accounting 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 are not detailed in these unconsolidated condensed interim financial statements.

Balances with other banks - net of credit loss allowance

39,698,066

For The Half Year Ended June 30, 2026

Unaudited

For The Half Year Ended June 30, 2026

Audited December 31, 2025

Note

June 30, 2026

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

9.

LENDINGS TO FINANCIAL INSTITUTIONS

Call / clean money lendings

Repurchase agreement lendings (Reverse Repo)

99,049,292

(993)

99,048,299

Less: Credit loss allowance held against lending to financial institutions Lendings to financial institutions - net of credit loss allowance

9.1

Unaudited June 30, 2026 Audited December 31, 2025

Credit loss allowance held

Credit loss allowance held

Lendings

Lendings

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

9.1

Particulars of credit loss allowance

Domestic

Performing Under performing Non-performing Substandard Doubtful

Loss

Stage 1

Stage 2

Stage 3

16,747,596

-

(993)

-

-

-

-

-16,747,596

-

-

-

-(993)

Sub total

Overseas Performing Under performing Non-performing Substandard Doubtful

Loss

Stage 1

Stage 2

Stage 3

82,301,696

-

-

-

-

-

-

-82,301,696

-

-

-

-

-

Sub total

Total

99,049,292

(993)

1. INVESTMENTS Unaudited June 30, 2026 Audited December 31, 2025

   1. Investments by type:

      Cost / Amortised cost

      Credit loss allowance

      Surplus / (Deficit)

      Carrying Value

      Cost / Amortised cost

      Credit loss allowance

      Surplus / (Deficit)

      Carrying Value

      FVTPL

      Federal Government Securities Non Government Debt Securities Foreign securities

      Shares and units

      FVOCI

      Federal Government Securities Shares

      Foreign Securities

      Amortised Cost

      Federal Government Securities Provincial Government Securities Non Government Debt Securities Foreign securities

      Associates

      Subsidiaries Total Investments

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

      873,016

      8,646,961

      1,398,413

      2,703,278

13,621,668 - 261,687 13,883,355

1,844,569,782 (169,923) 63,001,325 1,907,401,184

7,942,819 (671,322) - 7,271,497

700,401 - - 700,401

17,968,237 - - 17,968,237

1,884,802,907 (841,245) 63,263,012 1,947,224,674

Unaudited June 30, 2026

Audited December 31,

2025

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

For The Half Year Ended June 30, 2026

Unaudited June 30, 2026 Audited December 31, 2025

For The Half Year Ended June 30, 2026

Performing Non Performing Total

Audited December 31,

2025

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

707,433,422

28,895,792

736,329,214

(46,010,504)

690,318,710

Audited December 31,

2025

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

613,784,005

137,232,850 122,545,209

802,989,218 736,329,214

Unaudited June 30, 2026 Audited December 31, 2025

Credit loss allowance

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

709,130

309,611

392,197

31,037,324

32,448,262

870,979

113,849

4,707,634

5,692,462

38,140,724

This includes non-performing port folio of agricultural, small enterprise and infrastructure project financing classified as "Other Assets Especially Mentioned "as per ther equirements of respective Prudential Regulations issued by the State Bank of Pakistan.

Outstanding Credit loss Outstanding Credit loss amount allowance held amount allowance held

Unaudited June 30, 2026

776,576,091

26,413,127

802,989,218

(46,814,224)

756,174,994

Unaudited June 30, 2026

665,756,368

Non Performing Loans

1,418,889

570,962

779,098

31,624,820

34,393,769

1,731,951

226,390

13,404,039

15,362,380

49,756,149

563,891 -

467,257 467,257

1,720,140,873 469,544

Audited December 31, 2025

49,261,137

495,012

49,756,149

(38,140,724)

11,615,425

600,613

1,039,887

909,820

29,259,364

31,809,684

93,054

126,444

5,995,118

6,214,616

38,024,300

81,244,226 160

Credit loss allowance

11,386,110 371,541

Advances include Rs.50,269.318 million (2025: Rs. 49,756.149 million) which have been placed under Stage 3 status as detailed below:

- -92,630,336 371,701

1,812,771,209 841,245

Unaudited June 30, 2026

49,612,016

657,302

50,269,318

(38,024,300)

12,245,018

Non Performing Loans

1,313,523

2,206,314

1,720,199

29,840,973

35,081,009

322,252

235,432

14,630,625

15,188,309

50,269,318

Unaudited June 30, 2026

Country of incorporation

% of interest held

Revenue

Profit / (loss) after tax

Total comprehensive income / (loss)

Assets Liabilities

Associates

2025

Note

11.2.1

Euronet Pakistan (Private) Limited

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

Unaudited June 30, 2026

Audited December 31,

726,964,075

25,755,825

752,719,900

658,172,285

28,400,780

686,573,065

(8,789,924)

743,929,976

(7,869,780)

678,703,285

Audited December 31, 2025

Country of incorporation

% of interest held

Revenue

Profit / (loss) after tax

Total comprehensive income / (loss)

Note

11.3

Domestic

Other Assets Especially Mentioned (OAEM) Substandard

Doubtful Loss

Assets Liabilities

Associates

Loans, cash credits, running finances, etc. Bills discounted and purchased Advances - gross

Credit loss allowance against advances

• Stage 1

• Stage 2

• Stage 3

• General

Advances - net of credit loss allowance

Particulars of advances (gross)

In local currency In foreign currencies

Euronet Pakistan (Private) Limited (unaudited based on December 31, 2025)

Category of Classification

Adamjee Insurance Company Limited (unaudited based on September 30, 2025)

Subsidiaries

MCB Islamic Bank Limited

(audited based on December 31, 2025)

Overseas Substandard Doubtful Loss

MCB Investment Management Limited (audited based on June 30, 2025)

11. ADVANCES

Total

MCB Non-Bank Credit Organization Closed Joint Stock Company

11.2.1

(audited based on December 31, 2025)

11.1

11.2

MCB Exchange Company (Private) Limited (unaudited based on December 31, 2025)

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

For The Half Year Ended June 30, 2026

- (7,333) - (33,150)

(502,820) (1,020,244) (2,606,814) (4,828,507)

- (130,872) - (130,872)

- (2,192,847) - (2,192,847)

343,162 38,140,724 5,850,070 46,010,504

Capital work-in-progress 12.1

Property and equipment

91,028,322

97,069,222

2,209,260

17,535

3,804,026

10,079

6,040,900

- (7,333) - (33,150)

(496,655) (144,116) 1,223,637 (716,272)

- (130,872) - (130,872)

- (2,192,847) - (2,192,847)

(6,165) (876,128) (3,830,451) (4,112,235)

343,162 38,140,724 5,850,070 46,010,504

Unaudited June 30, 2026 Audited December 31, 2025

1. 1. Additions to property and equipment

      The following additions have been made to property and equipment during the period: Capital work-in-progress - net of transferred out for capitalization

      Property and equipment Building on freehold land Building on leasehold land Freehold land Leasehold land

      Electrical office and computer equipment Furniture and fixture

      Leasehold Improvements Vehicles

   2. Disposal of property and equipment

      3,604,864

      418,393

      106,213

      894,934

      9,055

      1,011,228

      133,434

      550,845

      457,310

      (2,025,612)

      958,869 1,399 3,421,059 -946,132 173,116 681,946 557,667

      6,740,188

      4,714,576

      -23,632 1,099 4,117 - 28,848

      3,581,412

      7,186,276

      Outstanding amount

      Credit loss allowance

      Outstanding amount

      Credit loss allowance

      The net book value of property and equipment disposed off during the period is as follows:

      1. Category of Classification Domestic

         Performing Stage 1

         Under performing Stage 2

         Non-performing Stage 3

         Other Assets Especially Mentioned Substandard

         Doubtful Loss

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

         663,843,339		2,201,749	614,540,196
         29,316,021		540,081	21,305,994
         1,313,523		600,613	1,418,889
         2,206,314		1,039,887	570,962
         1,720,199		909,820	779,098
         29,840,973		29,259,364	31,624,820
         35,081,009		31,809,684	34,393,769
         -		5,362,405	-
         728,240,369		39,913,919	670,239,959
         57,308,439		257,988	46,931,636
         2,252,101		11,915	3,795,239
         322,252		93,054	1,731,951
         235,432		126,444	226,390
         14,630,625		5,995,118	13,404,039
         15,188,309		6,214,616	15,362,380
         -		415,786	-
         74,748,849		6,900,305	66,089,255
         802,989,218		46,814,224	736,329,214

         1,524,534

         318,100

         709,130

         309,611

         392,197

         31,037,324

         32,448,262

         Freehold land Vehicles

         Furniture and fixture

         Electrical office and computer equipment Building on leasehold land

         Unaudited June 30, 2026

         92,039

         36,102

         820

         8,497

         2,659

         140,117

         Audited December 31,

         2025

         General Provision

         Overseas

         5,368,068

         39,658,964

2. RIGHT-OF-USE ASSETS

   Right-of-use assets 13.1

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

   7,419,293

   7,456,518

   Performing Stage 1

   Under performing Stage 2

   Non-performing Stage 3

   Substandard Doubtful Loss

   General Provision

   Total

   152,014

   25,062

   870,979

   113,849

   4,707,634

   5,692,462

   482,002

   6,351,540

   46,010,504

   1. At January 01,

Cost

Accumulated depreciation

Net carrying amount at January 01,

Additions / adjustments during the period / year Deletions during the period / year

Unaudited June 30, 2026 Audited December 31, 2025 Buildings Others Total Buildings Others Total

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

12,441,274 - 12,441,274

(6,395,928) - (6,395,928)

6,045,346 - 6,045,346

3,313,968 - 3,313,968

(94,181) - (94,181)

State Bank of Pakistan vide BSD Circular No. 2 dated January 27, 2009, BSD Circular No. 10 dated October 20, 2009, BSD Circular No. 02 of 2010 dated June 03, 2010 and BSD Circular No. 1 of 2011 dated October

21, 2011 has allowed benefit of Forced Sale Value (FSV) of Plant & Machinery under charge, pledged stock and mortgaged residential, commercial & industrial properties (land and building only) held as collateral against Non Performing Loans (NPLs) for five years from the date of classification. However, management has not taken the FSV benefit in calculation of specific provision.

The Bank maintains the general provision, over and above the ECL for Stage 1 and Stage 2 exposures, which is allowed to be maintained by SBP vide BPRD Circular Letter No. 01 dated January 22, 2025 up to December 31, 2026.

Exchange adjustments

Depreciation charge for the period / year Closing net carrying amount

3,324 - 3,324

(1,811,939) - (1,811,939)

7,456,518 - 7,456,518

14,948,743

-

14,948,743

(7,492,225) - (7,492,225)

7,456,518 - 7,456,518

950,651 - 950,651

(39,657) - (39,657)

(8,056) - (8,056)

(940,163) - (940,163)

7,419,293 - 7,419,293

For The Half Year Ended June 30, 2026

Unaudited

Note

Audited

For The Half Year Ended June 30, 2026

Unaudited

Audited

June 30, 2026

December 31,

2025

Note

June 30, 2026

December 31,

2025

1. PROPERTY AND EQUIPMENT

   Capital work-in-progress 12.1

   Property and equipment

   1. Capital work-in-progress

      Civil works Equipment

      Advance payment - suppliers and property acquisition

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

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

      14.	INTANGIBLE ASSETS
      	Computer software	636,249	698,275
      	Capital work-in-progress	752,654	652,759
      		1,388,903	1,351,034

      Unaudited

      Others

      Half year ended Half year ended June 30, 2026 June 30, 2025

      4,015,288	6,040,900
      95,252,983	91,028,322
      99,268,271	97,069,222
      2,687,538	2,209,260
      551,530	17,535
      770,396	3,804,026
      5,824	10,079
      4,015,288	6,040,900

      Unaudited

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

   2. Additions to property and equipment

      The following additions have been made to property and equipment during the period: Capital work-in-progress - net of transferred out for capitalization

      Property and equipment

      Half year ended Half year ended June 30, 2026 June 30, 2025

      (2,025,612)	3,604,864
      958,869	418,393
      1,399	106,213
      3,421,059	894,934
      -	9,055
      946,132	1,011,228
      173,116	133,434
      681,946	550,845
      557,667	457,310
      6,740,188	3,581,412
      4,714,576	7,186,276

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

      14.1 Additions to intangible assets

      The following additions have been made to intangible assets during the period:

      Computer software 208,494 131,879

      Capital work-in-progress - net of transferred out for capitalization 99,895 176,040 308,389 307,919

      Audited

      Building on freehold land Building on leasehold land

      Unaudited June 30, 2026

      December 31,

      2025

      Freehold land Leasehold land

      Electrical office and computer equipment Furniture and fixture

      Leasehold Improvements Vehicles

   3. Disposal of property and equipment

      	Freehold land Vehicles	- 23,632	92,039 36,102
      	Furniture and fixture	1,099	820
      	Electrical office and computer equipment	4,117	8,497
      Building on leasehold land		- 28,848	2,659 140,117

      The net book value of property and equipment disposed off during the period is as follows:

      Unaudited June 30, 2026

      Audited December 31,

      2025

      1. OTHER ASSETS

         Income / mark-up accrued in local currency Income / mark-up accrued in foreign currencies

         Advances, deposits, advance rent and other prepayments Advance taxation (payments less provisions)

         Non-banking assets acquired in satisfaction of claims Branch adjustment account

         Mark to market gain on forward foreign exchange contracts Unrealized gain on derivative financial instruments

         Acceptances 22

         Receivable from the pension fund Clearing and settlement accounts Deferred cost on staff loans

         Claims receivable against fraud and forgeries Others

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

         67,360,510 861,932 21,187,982 2,613,623 1,159,341 -2,202,956 141 27,332,110 18,235,333 8,859,352 6,916,195 765,205 4,785,041

         162,279,721 3,349,310

         158,930,411 421,655

         159,352,066

         40,091 765,205 48,966 2,495,048

         3,349,310

         65,139,900

         1,007,491

         16,662,201

         -1,165,624

         278,694

         1,012,088

         15,921

         41,015,271

         17,312,255

         23,346,488

         6,534,465

         802,160

         3,691,705

         177,984,263

2. RIGHT-OF-USE ASSETS ----------Rupees in '000--------

   Right-of-use assets 13.1 7,419,293 7,456,518

   Unaudited June 30, 2026 Audited December 31, 2025 Buildings Others Total Buildings Others Total

   -

   14,948,743

   1. At January 01, ---------------------------Rupees in '000--------------------------

Less: Credit loss allowance held against other assets 15.1

Other assets net of credit loss allowance Surplus on revaluation of non-banking assets

acquired in satisfaction of claims 24

Other assets - total

3,599,005

174,385,258

421,655

174,806,913

Cost

Accumulated depreciation

Net carrying amount at January 01,

Additions / adjustments during the period / year Deletions during the period / year

Exchange adjustments

Depreciation charge for the period / year Closing net carrying amount

12,441,274 - 12,441,274

(7,492,225) - (7,492,225)

7,456,518 - 7,456,518

950,651 - 950,651

(39,657) - (39,657)

(8,056) - (8,056)

(940,163) - (940,163)

7,419,293 - 7,419,293

14,948,743

(6,395,928) - (6,395,928)

6,045,346 - 6,045,346

3,313,968 - 3,313,968

(94,181) - (94,181)

3,324 - 3,324

(1,811,939) - (1,811,939)

7,456,518 - 7,456,518

Mark-up accrued Others

40,091

802,160

51,365

2,705,389

3,599,005

For The Half Year Ended June 30, 2026

Unaudited June 30, 2026

For The Half Year Ended June 30, 2026

Audited December 31,

2025

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

15.1.1 Movement in credit loss allowance held against other assets

Opening balance

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

3,599,005

3,610,740

(239,826)

-(9,869)

3,349,310

(19,267)

(250)

7,782

3,599,005

Amounts written off

Exchange and other adjustments Closing balance

CONTINGENT ASSETS

There are no contingent assets of the Bank as at June 30, 2026 (2025: Nil).

16.

Audited December 31,

2025

Unaudited June 30, 2026

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

17.

BILLS PAYABLE

In Pakistan Outside Pakistan

15,354,797

3,973,244

19,328,041

24,593,446

1,023,806

25,617,252

18.

BORROWINGS

Secured

Borrowings from State Bank of Pakistan Under export refinance scheme Under long term financing facility

Under renewable energy performance platform Under temporary economic refinance facility

Under financing facility for storage of agricultural produce Under refinance and credit guarantee scheme

for Women Entrepreneurs

19,292,854

9,962,077

1,512,194

20,386,901

242,891

26,677,629

11,778,273

1,717,767

22,229,277

121,881

2,235

51,399,152

294,724,175

346,123,327

3,012

62,527,839

391,729,648

454,257,487

Repurchase agreement borrowings

Total secured Unsecured Call borrowings

Overdrawn nostro accounts Others

Total unsecured

6,793,785

352,917,112

3,614,370

457,871,857

1. DEPOSITS AND OTHER ACCOUNTS

   Unaudited June 30, 2026 Audited December 31, 2025

   currencies

   In Local currency In Foreign

   Total In Local currency In Foreign

   Total

   currencies

   Customers Current deposits Savings deposits Term deposits Others

   Financial Institutions Current deposits Savings deposits Term deposits Others

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

   Note

   998,679,727	286,962,717	1,285,642,444	881,225,829	263,167,081	1,144,392,910
   892,699,082	24,908,670	917,607,752	933,409,161	29,216,445	962,625,606
   77,113,861	21,014,437	98,128,298	26,046,977	22,926,920	48,973,897
   116,634,390	4,715,169	121,349,559	46,748,775	4,596,666	51,345,441
   2,085,127,060	337,600,993	2,422,728,053	1,887,430,742	319,907,112	2,207,337,854
   32,959,706	2,235,168	35,194,874	17,685,271	4,333,159	22,018,430
   135,436,006	878,677	136,314,683	21,559,407	355,790	21,915,197
   404,968	8,817,900	9,222,868	419,968	9,499,168	9,919,136
   -	83,957	83,957	-	84,413	84,413
   168,800,680	12,015,702	180,816,382	39,664,646	14,272,530	53,937,176
   2,253,927,740	349,616,695	2,603,544,435	1,927,095,388	334,179,642	2,261,275,030

   Unaudited June 30, 2026

   Audited December 31, 2025

2. LEASE LIABILITIES

   Lease Liabilities 20.1

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

   12,094,859

11,804,530

Unaudited June 30, 2026 Audited December 31, 2025 Buildings Others Total Buildings Others Total

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

For The Half Year Ended June 30, 2026

Note

Unaudited June 30, 2026

Note

Audited December 31, 2025

For The Half Year Ended June 30, 2026

22.2 An analysis of changes in credit loss allowance against off-balance sheet obligations is as follows:

1. DEFERRED TAX LIABILITIES

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

   Unaudited June 30, 2026

   Audited December 31, 2025

   Taxable Temporary Differences on

   • Surplus on revaluation of property and equipment

   • Surplus on revaluation of non-banking assets

   • Accelerated tax depreciation

   • Receivable from pension fund

   • Surplus on revaluation of investments

   • Business combination

     Deductible Temporary Differences on

   • Leases (net)

   • Credit loss allowance against financial assets

   Unaudited June 30, 2026

   5,344,100

   219,261

   4,336,550

   9,002,373

   32,760,688

   705,218

52,368,190

(2,524,378)

(4,896,708)

44,947,104

Audited December 31, 2025

Opening balance Exchange adjustment

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

Closing balance

1. RESERVES

   Share premium

   Non - distributable capital reserve - gain on bargain purchase option 23.1

   Exchange translation reserve

   Statutory reserve 23.2

   1,538,494	1,459,096
   (12,123)	(7,396)
   583,059	479,384
   (642,891)	(392,590)
   (59,832)	86,794
   1,466,539	1,538,494
   23,751,114		23,751,114
   908,317		908,317
   7,762,147		8,664,148
   60,707,197		58,059,694
   18,600,000		18,600,000
   111,728,775		109,983,273

   General reserve

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

   1. OTHER LIABILITIES

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

      Mark-up / return / interest payable in local currency Mark-up / return / interest payable in foreign currencies Unearned commission and income on bills discounted

      2,808,736

      523,744

      3,582,626

      1,146,669

      533,949

      3,366,801

      1. Under IFRS 3 a bargain purchase represents an economic gain which should be immediately recognized by the acquirer as income. However, the amount of bargain purchase gain has not been taken to the profit and loss account as the SBP, through its letter BPRD(R&PD)/2017/14330 dated June 13, 2017 recommended that the amount of gain may be routed directly into equity as a Non-distributable Capital Reserve (NCR). The NCR may become available for distribution through a stock dividend only with prior approval of

23.2 Statutory reserve represents amount set aside as per the requirements of section 21 of the Banking Companies Ordinance, 1962.

Note

Unaudited June 30, 2026

Audited December 31, 2025

Legal advice obtained on the matter indicates that consequent to filing of these review petitions the judgment may not currently be treated as conclusive. Accordingly, the Bank maintained its provision in respect of WWF.

SURPLUS ON REVALUATION OF ASSETS

Surplus / (deficit) on revaluation of

• Securities measured at FVOCI - Debt securities 10.1

• Securities measured at FVOCI - Equity securities 10.1

• Property and equipment

• Non-banking assets acquired in satisfaction of claims 15

  Deferred tax on (surplus) / deficit on revaluation of:

• Securities measured at FVOCI - Debt securities 21

• Securities measured at FVOCI - Equity securities 21

• Property and equipment 21

• Non-banking assets acquired in satisfaction of claims 21

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

21,888,684

24,043,493

46,842,838

421,655

93,196,670 110,429,412

(11,382,116)

(12,502,616)

(5,259,030)

(219,261)

(29,363,023) (38,324,049)

63,833,647 72,105,363

For The Half Year Ended June 30, 2026

Note Unaudited June 30, 2026

Audited December 31,

2025

For The Half Year Ended June 30, 2026

Note

Unaudited June 30, 2026

Audited December 31,

2025

1. CONTINGENCIES AND COMMITMENTS

   -Guarantees 25.1

   -Commitments 25.2

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

   1. Other contingent liabilities

      Claims against the Bank not acknowledged as debts

      25.3.1

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

      33,702,283

35,710,949

-Other contingent liabilities 25.3

1. Guarantees:

   Financial guarantees Performance guarantees Other guarantees

2. Commitments:

   Documentary credits and short-term trade-related transactions

   • letters of credit Commitments in respect of:

   • forward foreign exchange contracts 25.2.1

   • forward government securities transactions 25.2.2

   • derivatives (notional) 25.2.3

   • extending credit (irrevocable) 25.2.4

     Commitments for acquisition of:

   • property and equipment

   • intangible assets

   1. 1. These mainly represent counter claims by borrowers for damages and other claims relating to banking transactions. Based on legal advice and / or internal assessments, management is confident that the matters will be decided in the Bank's favour and the possibility of any adverse outcome is remote. Accordingly, no provision has been made in these unconsolidated condensed interim financial statements.

   2. Taxation

      For assessment year 1988-89 through tax year 2024, the tax department disputed Bank's treatment on certain issues, where the Bank's appeals are pending at various appellate forums, entailing an additional tax liability of Rs. 2,632.384 million (2025: Rs. 2,632.390 million). Such issues inter alia principally include disallowance of expenses for non-deduction of withholding tax and non availability of underlying records, provision for non performing loans, attribution of expenses to heads of income other than income from business and disallowance of credit for taxes paid in advance / deducted at source.

      The Bank has filed appeals which are pending at various appellate forums. In addition, certain decisions made in favour of the Bank are being contested by the department at higher forums. No provision has been made in these unconsolidated condensed interim financial statements regarding the aforesaid additional tax demand and already issued favourable decisions where the department is in appeal, as the management is of the view that the issues will be decided in the Bank's favour as and when these are taken up by the Appellate Authorities.

      The tax authorities have also carried out monitoring for Sales tax and withholding taxes covering period from year ended 2018 to 2022. Consequently various add backs and arbitrary demands were raised creating a total demand of Rs. 3,412.883 million. The Bank has filed appeals against all such demands and is confident that these would be decided in the favor of the Bank.

   3. Amortization of goodwill and other intangibles amounting to Rs 28.08 billion of Ex. NIB

   Issue of goodwill and other related assets amortization for few years has been assessed in Bank's favour at appellate forums, however, the tax department has filed appeal against these decisions. The management has not recorded any tax benefit because the issue has not attained finality.

   1. DERIVATIVE INSTRUMENTS

      235,131,364	248,096,091
      927,132,456	613,863,246
      33,702,283	35,710,949
      1,195,966,103	897,670,286
      163,104,186	168,117,809
      70,059,984	74,943,843
      1,967,194	5,034,439
      235,131,364	248,096,091
      275,004,004	275,290,399
      598,640,447	264,399,969
      -	4,000,000
      674,092	6,984,430
      50,194,765	61,161,546
      2,101,269	1,594,661
      517,879	432,241
      927,132,456	613,863,246
      312,642,525	131,361,638
      285,997,922	133,038,331
      598,640,447	264,399,969
      -	4,000,000
      -	-
      -	4,000,000
      337,046	3,492,215
      337,046	3,492,215
      674,092	6,984,430

      Unaudited June 30, 2026

      Cross Currency Swaps Interest Rate Swaps FX Options

      1. Commitments in respect of forward foreign exchange contracts

         Purchase

         Notional Principal

         Mark to market gain / loss

         Notional Principal

         Mark to market gain / loss

         Notional Principal

         Mark to market gain / loss

         Sale

      2. Commitments in respect of forward government securities transactions

         Purchase Sale

      3. Commitments in respect of derivatives

         FX options (notional) Purchase

         Sale

      4. The Bank makes commitments to extend credit (including to related parties) in the normal course of its business but these being revocable commitments do not attract any significant penalty or expense if the facilities are unilaterally withdrawn except for Rs. 50,194.765 million (2025: Rs. 61,161.546 million) which are irrevocable in nature.

         Total Hedging Market Making

         Total Hedging Market Making

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

         - -

         - -

         - -

         - -

         337,046 337,046

         141 (141)

         Audited December 31, 2025

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

         - -

         - -

         - -

         - -

         3,492,215 3,492,215

         15,921 (15,921)

         
         
         Notes To The Unconsolidated Condensed Interim Financial Statements (Un-Audited)

         For The Half Year Ended June 30, 2026

         Unaudited

         Notes To The Unconsolidated Condensed Interim Financial Statements (Un-Audited)

         For The Half Year Ended June 30, 2026

         Unaudited

         Note

         63,887	97,227
         33,479	31,486
         128,985	170,153
         226,351	298,866
         17,917,753	15,009,720
         237,534	157,989
         15,308	13,715
         1,164,991	1,032,739
         522,534	406,427
         1,182,512	1,158,380
         717,914	630,819
         940,163	915,048
         717,445	608,264
         5,498,401	4,923,381
         1,308,175	1,138,940
         112,899	182,531
         771,765	750,382
         265,325	284,610
         350,023	320,475
         5,580	5,943
         2,813,767	2,682,881
         28,520	30,520
         346,168	236,977
         682,936	595,287
         309,096	304,015
         151,403	137,884
         964,773	752,790
         6,283	8,221
         110,978	50,308
         138,236	152,887
         1,286,500	1,288,423
         596,103	556,374
         348,153	1,916,319
         35,489	46,275
         572,000	575,721
         451,666	422,510
         12,983	19,193
         262,527	222,235
         100,612	153,826
         42,722	27,324
         2,263,701	1,924,149
         200,835	156,122
         1,455,071	1,285,729
         238,865	339,328
         10,605,620	11,202,417
         36,835,541	33,818,399

         Half year ended Half year ended June 30, 2026 June 30, 2025

         Half year ended Half year ended June 30, 2026 June 30, 2025

   2. MARK-UP / RETURN / INTEREST EARNED

      Loans and advances Investments

      Lendings to financial institutions Balances with banks

      1. Interest income recognised on:

         Financial assets measured at amortised cost Financial assets measured at FVOCI Financial assets measured at FVTPL

   3. MARK-UP / RETURN / INTEREST EXPENSED

   Deposits Borrowings

   Cost of foreign currency swaps against

   Finance charges on lease liability against right-of-use assets	20.1
   29. FEE & COMMISSION INCOME
   Branch banking customer fees
   Consumer finance related fees
   Card related fees (debit and credit cards)
   Credit related fees
   Investment banking fee
   Commission on trade
   Commission on guarantees
   Commission on cash management
   Commission on remittances including home remittances
   Commission on bancassurance
   Rent on lockers
   Commission on utility bills
   Commission on investments services
   Others
   30. GAIN / (LOSS) ON SECURITIES - NET Realised	30.1
   Unrealised - measured at FVTPL	10.1

   foreign currency deposits / borrowings

   1. Realised gain / (loss) on: Federal Government Securities Non Government Debt Securities Shares

   2. Realised gain / (loss) on:

   Financial assets measured at FVTPL Designated upon initial recognition Mandatorily measured at FVTPL

   Financial assets measured at FVOCI

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

   1. OTHER INCOME

      39,343,418	43,192,198
      103,831,451	98,088,734
      2,570,557	2,176,760
      815,001	686,939
      146,560,427	144,144,631
      43,006,080	46,668,770
      102,506,486	94,655,277
      1,047,861	2,820,584
      146,560,427	144,144,631
      47,813,550	49,253,765
      21,592,970	22,533,790
      858,579	116,895
      1,006,405	893,922
      71,271,504	72,798,372
      2,409,630	2,289,173
      485,469	382,801
      5,012,068	4,430,783
      215,923	320,239
      96,281	60,671
      1,370,296	1,550,028
      448,915	353,293
      579,337	542,084
      242,138	(1,247,627)
      679,072	515,193
      127,625	136,613
      54,213	48,627
      89,035	349,605
      108,704	101,584
      11,918,706	9,833,067
      535,177	(251,604)
      (147,826)	110,721
      387,351	(140,883)
      396,611	(164,258)
      19,550	31,075
      119,016	(118,421)
      535,177	(251,604)
      167,698	(270,637)
      -	-
      167,698	(270,637)
      367,479	19,033
      367,479	19,033
      535,177	(251,604)

      Rent on property

      Gain on termination of lease liability against right of use assets Gain on sale of property and equipment - net

   2. OPERATING EXPENSES

      Total compensation expense Property expense

      Rent and taxes Insurance Utilities cost

      Fuel expense generators Security (including guards)

      Repair and maintenance (including janitorial charges) Depreciation on right-of-use assets

      Depreciation

      Information technology expenses

      Software maintenance Hardware maintenance Depreciation Amortization

      Network charges Insurance

      Other operating expenses Directors' fees and allowances Legal and professional charges Outsourced services costs Travelling and conveyance NIFT clearing charges Depreciation

      Depreciation on non-banking assets acquired in satisfaction of claims Training and development

      Postage and courier charges Communication

      Stationery and printing

      Marketing, advertisement & publicity Auditors' remuneration

      Cash transportation charges Repair and maintenance Subscription Entertainment

      Remittance charges Brokerage expenses Card related expenses CNIC verification charges Insurance

      Others

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

      
      
      Notes To The Unconsolidated Condensed Interim Financial Statements (Un-Audited)

      For The Half Year Ended June 30, 2026

      Unaudited

      Notes To The Unconsolidated Condensed Interim Financial Statements (Un-Audited)

      For The Half Year Ended June 30, 2026

      1. FAIR VALUE MEASUREMENTS

         Note

         Half year ended June 30, 2026

         Half year ended June 30, 2025

         The fair value of quoted securities other than those classified as amortised cost, is based on quoted market price. Quoted debt securities classified as amortised cost are carried at cost. The fair value of unquoted equity securities, other than investments in associates and subsidiary, is determined on the basis of valuation methodologies.

   3. OTHER CHARGES

      Penalties of State Bank of Pakistan

      VAT & National Building tax & Crop Insurance Levy Education cess

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

      616 82,632 95,579 178,827

      (215,783) 73,186 (64,805) 1,416,487 (987) (59,832) (239,826) (202,424) 706,016

      29,209,946 - (551,159) 28,658,787

      17,575

      78,668

      62,200

      158,443

      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 absence of current and active market for such 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 financial liabilities are not significantly different from their carrying values since these are either short-term in nature or, in the case of customer loans and deposits, are frequently repriced.

      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:

   4. CREDIT LOSS ALLOWANCE AND WRITE OFFS - NET

      (Reversal) / credit loss allowance against balance with other banks Credit loss allowance against cash and balances with treasury banks

      (Reversal) / credit loss allowance for diminution in value of investments 10.2

      Credit loss allowance / (reversal) against loans and advances 11.3

      (Reversal) / credit loss allowance against lendings to financial institutions

      91,878

      42,982

      93,008

      (4,715,800)

      1,655

      Level 1:

      Level 2:

      Level 3:

      Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or liabilities. Financial instruments included in Level 1 comprise of investments in listed ordinary shares.

      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). Financial instruments included in Level 2 comprise of Sukuk Bonds, Pakistan Investment Bonds, Market Treasury Bills, Mutual Fund units, Term Finance certificates, FX options, Cross Currency Swaps, Interest Rate Swaps and Forward Exchange Contracts.

      Fair value measurements using input for the asset or liability that are not based on observable market data (i.e. unobservable inputs). Financial instruments included in Level 3 comprise of investments in unquoted equity investments.

      (Reversal) / credit loss allowance against off balance sheet items

      Reversal of credit loss allowance against other assets 15.1.1

      Recovery of written off / charged off bad debts

      297,496

      (16,557)

      (130,988)

      (4,336,326)

      1. Fair value of non-financial assets

      Certain categories of property and equipment (land and buildings) and non banking assets acquired in satisfaction of claims are carried at revalued amounts determined by professional valuers based on their assessment of the market values. The valuations are conducted by the valuation experts appointed by the Bank which are also on the panel of the State Bank of Pakistan.

   5. TAXATION

      Current

      28,500,704

      37.3

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

      Unaudited June 30, 2026

      Prior years

      2,174,994

      Carrying / Notional Value

      Level 1 Level 2 Level 3 Total

      Deferred

   6. BASIC AND DILUTED EARNINGS PER SHARE

      84,653

      30,760,351

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

      On balance sheet financial instruments Financial assets - measured at fair value

      Federal Government Securities	1,913,444,168	-	1,913,444,168	-	1,913,444,168
      Shares and units	74,755,179	67,266,845	17,677	7,470,657	74,755,179
      Non-Government Debt Securities	9,059,297	-	9,059,297	-	9,059,297
      Foreign Securities	45,863,998	-	45,863,998	-	45,863,998

      Investments

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

      Profit after tax 26,475,031 27,305,704

      ----------Number--------

      Weighted average number of ordinary shares 1,185,060,006 1,185,060,006

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

      Basic and diluted earnings per share 22.34 23.04

      Financial assets - disclosed but not measured at fair value

      Investments (amortized cost)

      Non - Financial Assets measured at fair value Property and equipment (land and buildings) Non-banking assets

      Off-balance sheet financial instruments - measured at fair value

      Forward purchase of foreign exchange Forward sale of foreign exchange

      Derivatives purchase Derivatives sale

      5,130,541 - - - -

      78,747,440 - 78,747,440 - 78,747,440

      1,540,905 - 1,540,905 - 1,540,905

      312,642,525 - 1,845,684 - 1,845,684

      285,997,922 - 1,928,145 - 1,928,145

      337,046 - 141 - 141

      337,046 - 141 - 141

      
      
      Notes To The Unconsolidated Condensed Interim Financial Statements (Un-Audited)

      For The Half Year Ended June 30, 2026

      Audited December 31, 2025

      Notes To The Unconsolidated Condensed Interim Financial Statements (Un-Audited)

      For The Half Year Ended June 30, 2026

      On balance sheet financial instruments Financial assets - measured at fair value

      Federal Government Securities	1,765,037,667	-	1,765,037,667	-	1,765,037,667
      Shares and units	79,214,870	71,590,221	243,070	7,381,579	79,214,870
      Non-Government Debt Securities	8,637,375	-	8,637,375	-	8,637,375
      Foreign Securities	68,394,627	-	68,394,627	-	68,394,627

      Investments

      Carrying / Level 1 Level 2 Level 3 Total

      Notional Value

      Item

      Valuation approach and input used

      Property and equipment (land and building) & Non-banking assets acquired in satisfaction of claims

      Land, buildings and non-banking assets acquired in satisfaction of claims are revalued on a periodic basis using valuation experts. 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 unconsolidated condensed interim financial statements.

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

      Financial assets - disclosed but not measured at fair value

      Investments (amortized cost)

      7,271,497 - - - -

      The following table summarises the quantitative information about the significant unobservable inputs used in Level 3 fair value measurements of investment in unquoted equity securities.

      Non - Financial Assets measured at fair value
      Property and equipment (land and buildings)	74,794,092	-	74,794,092	-	74,794,092
      Non-banking assets	1,547,188	-	1,547,188	-	1,547,188
      Off-balance sheet financial instruments - measured at fair value
      Forward purchase of foreign exchange	131,361,638	- 938,631		- 938,631
      Forward sale of foreign exchange	133,038,331	- 777,927		- 777,927
      Forward purchase of government securities	4,000,000	- -		- -
      Derivatives purchase	3,492,215	- 15,921		- 15,921
      Derivatives sale	3,492,215	- 15,921		- 15,921

      37.4

      The Bank's policy is to recognise transfers into and out of the different fair value hierarchy levels at the date the event or change in circumstances that caused the transfer occurred. There were no transfers between Levels 1 and 2 during the period.

   7. 5 Valuation techniques used in determination of fair valuation of financial instruments within Level 2 and Level 3

   Description	Valuation technique	Unobservable inputs*	Discount rate	Relationship of unobservable inputs to fair value
   Unquoted equity investments (Income approach)	DCF method	Discount rate	19.63%	Increase / decrease in discount rate by 1% with all other variables held constant, would decrease / increase the fair value by Rs. 386.910 million and Rs 473.460 million respectively.
   		Terminal growth rate	4% - 13%	Increase / decrease in terminal growth factor rate by 1% with all other variables held constant, would increase / decrease the fair value by Rs. 358.119 million and Rs. 286.786 million respectively.
   Unquoted equity investments (market approach)	Price to Earnings and Price to Book Value	Market multiple/ transaction price	Not applicable	Not applicable

   * There were no significant inter-relationships between unobservable inputs that materially affect fair values. The following table shows reconciliation of investments Level 3 fair value movement:

   Unaudited June 30, 2026

   Audited December 31,

   2025

   Item	Valuation approach and input used
   Federal Government securities	The fair values of Treasury Bills and fixed rate Pakistan Investments Bonds are determined using the PKRV rates while floating rate Pakistan Investments Bonds are revalued using PKFRV rates. The fair values of foreign currency denominated GoP Eurobonds are determined on the basis of rates taken from Bloomberg.
   Term Finance and Bonds	Investments in debt securities (comprising term finance certificates, sukuks, bonds 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.
   Foreign Government Debt Securities	The fair values of Foreign Government debt securities are determined on the basis of rates taken from Bloomberg.
   Foreign exchange contracts	The valuation has been determined by interpolating the mark-to-market currency rates announced by the State Bank of Pakistan.
   Derivatives	The fair values of derivatives which are not quoted in active markets are determined by using valuation techniques. The valuation techniques take into account the relevant underlying parameters including foreign currency involved, interest rates, yield curves, volatilities, contracts duration etc.
   Unquoted equity investments	The fair value of unquoted equity investments is determined using the discounted cash flow (DCF) method based on projected cash flows, where available. In the absence of reliable projections, a comparable market approach is applied using relevant P/B and P/E multiples of comparable listed companies. For entities with negative equity and sustained losses or negative cash flows, fair value is assessed at the lower of cost or break-up value.
   Mutual Funds	Units of mutual funds are valued using the Net Asset Value (NAV) announced by the Mutual Funds Association of Pakistan (MUFAP).

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

   Opening balance	7,381,579	5,017,877
   Remeasurement recognised in OCI / adjustments	89,078	2,363,702
   Closing balance	7,470,657	7,381,579

   
   
   Notes To The Unconsolidated Condensed Interim Financial Statements (Un-Audited)

   For The Half Year Ended June 30, 2026

   1. SEGMENT INFORMATION

      1. Segment details with respect to business activities

         The segment analysis with respect to business activity is as follows:

         Unaudited Half Year ended June 30, 2026

         Retail Banking

         Consumer Banking

         Corporate Banking

         Treasury

         International Banking

         Others

         Sub-total

         Eliminations

         Total

         (41,077,735)	3,543,580	26,115,895	82,571,186 4,135,997 -			75,288,923	-	75,288,923
         97,334,884	(2,353,750)	(21,558,279)	(77,889,487) (243,856) 4,710,488			-	-	-
         7,411,911	1,717,480	4,563,586	3,549,794 1,474,009 (48,825)			18,667,955	-	18,667,955
         63,669,060	2,907,310	9,121,202	8,231,493 5,366,150 4,661,663			93,956,878	-	93,956,878
         24,953,779	1,600,685	827,447	378,829 1,902,536 8,453,768			38,117,044	-	38,117,044
         -	-	-	- - -			-	-	-
         24,953,779	1,600,685	827,447	378,829 1,902,536 8,453,768			38,117,044	-	38,117,044
         37,552	59,576	1,492,885	- 673,409 (1,557,406)			706,016	-	706,016
         38,677,729	1,247,049	6,800,870	7,852,664 2,790,205 (2,234,699)			55,133,818	-	55,133,818
         			Unaudited June 30, 2026
         85,665,019	146,788	735,864	103,717,091	37,128,486	-	227,393,248	-	227,393,248
         -	-	9,699,243	1,992,717,920	64,504,658	-	2,066,921,821	-	2,066,921,821
         2,009,830,434	-	-	-	-	324,359,607	2,334,190,041	(2,334,190,041)	-
         -	-	-	814,410	111,328,139	-	112,142,549	-	112,142,549
         58,514,959	62,392,086	569,510,485	-	59,290,637	(5,778,191)	743,929,976	-	743,929,976
         129,367	137,185	2,427,379	-	8,973,693	577,394	12,245,018	-	12,245,018
         65,319,075	6,385,665	57,343,594	53,248,246	2,844,617	82,287,336	267,428,533	-	267,428,533
         2,219,458,854	69,061,724	639,716,565	2,150,497,667	284,070,230	401,446,146	5,764,251,186	(2,334,190,041)	3,430,061,145
         1,878,657	32,672	49,650,109	299,717,991	1,637,683	-	352,917,112	-	352,917,112
         2,199,910,989	-	164,225,989	-	239,407,457	-	2,603,544,435	-	2,603,544,435
         -	58,381,761	393,373,039	1,847,921,272	34,513,969	-	2,334,190,041	(2,334,190,041)	-
         17,669,208	10,647,291	32,467,428	2,858,404	8,511,121	88,566,422	160,719,874	-	160,719,874
         2,219,458,854	69,061,724	639,716,565	2,150,497,667	284,070,230	88,566,422	5,451,371,462	(2,334,190,041)	3,117,181,421
         -	-	-	-	-	312,879,724	312,879,724	-	312,879,724
         2,219,458,854	69,061,724	639,716,565	2,150,497,667	284,070,230	401,446,146	5,764,251,186	(2,334,190,041)	3,430,061,145
         102,831,886	-	441,374,245	599,314,539	16,119,231	36,326,202	1,195,966,103	-	1,195,966,103

         Statement of Profit & Loss Account Net mark-up / return / profit Inter segment revenue - net

         Non mark-up / return / interest income

         Total Income Segment direct expenses Inter segment expense allocation Total Expenses Credit loss allowance and write offs - net Profit before tax

         Statement of Financial Position Cash & Bank balances Investments Net inter segment lending Lendings to financial institutions

         Advances - performing / underperforming

         - non performing Others Total Assets Borrowings

         Deposits and other accounts Net inter segment borrowing Others

         Total liabilities

         Equity

         Total Equity and liabilities Contingencies and Commitments

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

         Notes To The Unconsolidated Condensed Interim Financial Statements (Un-Audited)

         For The Half Year Ended June 30, 2026

         Unaudited Half Year ended June 30, 2025

         Retail Banking

         Consumer Banking

         Corporate Banking

         Treasury

         International Banking

         Others

         Sub-total

         Eliminations

         Total

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

         Statement of Profit & Loss Account Net mark-up / return / profit	(41,441,481)	3,280,795	28,711,070	76,710,489	4,085,386 - 71,346,259 - 71,346,259
         Inter segment revenue - net	89,881,690	(1,892,495)	(23,706,131)	(69,485,662)	(144,424) 5,347,022 - - -
         Non mark-up / return / interest income	7,324,439	1,681,401	3,397,519	3,974,897	1,191,931 (48,554) 17,521,633 - 17,521,633
         Total Income	55,764,648	3,069,701	8,402,458	11,199,724	5,132,893	5,298,468	88,867,892	-	88,867,892
         Segment direct expenses	21,191,302	1,425,536	2,412,910	421,292	1,597,767	8,089,356	35,138,163	-	35,138,163
         Inter segment expense allocation - - - - - - - - -
         Total Expenses	21,191,302	1,425,536 2,412,910 421,292				1,597,767 8,089,356 35,138,163 -				35,138,163
         Credit loss allowance and write offs - net	1,440,961	57,338 (332,802) (264,300)				(455,690) (4,781,833) (4,336,326) -				(4,336,326)
         Profit before tax	33,132,385	1,586,827 6,322,350 11,042,732				3,990,816 1,990,945 58,066,055 -				58,066,055
         Statement of Financial Position		Audited December 31, 2025
         Cash & Bank balances 68,843,100 118,623			285,083	108,325,440	52,209,346	-	229,781,592	-	229,781,592
         Investments - -			9,359,179	1,845,307,619	92,557,876	-	1,947,224,674	-	1,947,224,674
         Net inter segment lending 1,760,188,077 -				-	-	-	355,720,293	2,115,908,370	(2,115,908,370)	-
         Lendings to financial institutions - -				-	16,746,603	82,301,696	-	99,048,299	-	99,048,299
         Advances - performing / underperforming 47,606,751		49,912,087	536,484,718	-	50,549,799	(5,850,070)	678,703,285	-	678,703,285
         - non performing 127,017		160,553	746,315	-	9,669,918	911,622	11,615,425	-	11,615,425
         Others	60,129,463	3,587,468	63,618,182	54,663,139	2,673,183	96,012,252	280,683,687	-	280,683,687
         Total Assets	1,936,894,408	53,778,731	610,493,477	2,025,042,801	289,961,818	446,794,097	5,362,965,332	(2,115,908,370)	3,247,056,962
         Borrowings	1,786,061	35,830	60,868,235 392,856,382 2,325,349 - 457,871,857 - 457,871,857
         Deposits and other accounts	1,910,873,393	-	104,181,107 - 246,220,530 - 2,261,275,030 - 2,261,275,030

         Net inter segment borrowing - 45,539,151				403,770,695		1,630,088,435		36,510,089 - 2,115,908,370 (2,115,908,370) -
         Others	24,234,954	8,203,750		41,673,440		2,097,984		4,905,850		131,052,871		212,168,849		-	212,168,849
         Total liabilities	1,936,894,408	53,778,731		610,493,477		2,025,042,801		289,961,818		131,052,871		5,047,224,106		(2,115,908,370)	2,931,315,736
         Equity - - - - - 315,741,226 315,741,226														-			315,741,226
         Total Equity and liabilities 1,936,894,408 53,778,731 610,493,477 2,025,042,801 289,961,818 446,794,097 5,362,965,332														(2,115,908,370)			3,247,056,962
         Contingencies and Commitments 101,275,094 - 460,776,721 275,384,399 22,491,394 37,742,678 897,670,286														-			897,670,286

      2. Transactions between reportable segments are based on an appropriate transfer pricing mechanism using agreed rates. Furthermore, segment assets and liabilities include inter segment balances. Costs which are not allocated to segments are included in the Head office. Income taxes are managed at bank level and are not allocated to operating segments.

         
         
         Notes To The Unconsolidated Condensed Interim Financial Statements (Un-Audited)

         For The Half Year Ended June 30, 2026

   2. RELATED PARTY TRANSACTIONS

   The Bank has related party relationship with its subsidiaries, associates, employee benefit plans, its directors and key management personnel and their close family members.

   The Banks 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 / officers is determined in accordance with the terms of their appointment.

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

   Un-Audited June 30, 2026
   Directors	Key Management Personnel	Subsidiaries	Associates	Other Related Parties

   Audited December 31, 2025
   Directors	Key Management Personnel	Subsidiaries	Associates	Other Related Parties

   -	-	8,747,596	-	-
   -	-	93,994,416	-	-
   -	-	(101,927,596)	-	-
   -	-	814,416	-	-
   -	-	(6)	-	-
   -	-	17,968,237	700,401	249,253
   -	-	-	-	-
   -	-	-	-	-
   -	-	17,968,237	700,401	249,253
   -	-	-	-	-
   13,582	209,268	560,245	-	2,242,934
   4,610	29,655	-	-	899,339
   (8,816)	(35,581)	(3,035)	-	(1,346,501)
   -	1,971	-	-	-
   9,376	205,313	557,210	-	1,795,772
   (76)	(1,868)	(4,541)	-	(9,776)
   -	-	-	19,125	7,242
   914	3,775	14,391	-	21,925
   -	-	-	-	-
   -	-	49,138	593,171	58,719
   -	-	-	-	18,235,333
   914	3,775	63,529	593,171	18,315,977
   (1)	(6)	(50)	-	(23)

   ------------------------------------------------------------------------------------------------(Rupeesin '000)------------------------------------------------------------------------------------------------

   Lendings to Financial Institutions
   Opening balance			-	-	-	-	-
   Addition during the period / year			-	-	105,742,434	-	-
   Repaid during the period / year			-	-	(96,994,838)	-	-
   Closing balance			-	-	8,747,596	-	-
   Credit loss allowance held against lending to financial institutions*			-	-	(519)	-	-
   Investments
   Opening balance			-	-	17,968,237	700,401	249,253
   Investment made during the period / year			-	-	-	-	-
   Investment disposed off during the period / year			-	-	-	-	-
   Closing balance			-	-	17,968,237	700,401	249,253
   Credit loss allowance for diminution in value of investments*			-	-	-	-	-
   Advances
   Opening balance			20,707	368,057	614,054	-	5,288,804
   Addition / exchange adjustment during the period / year			16,935	54,666	-	-	3,193,959
   Repaid / exchange adjustment during the period / year			(24,060)	(66,112)	(53,809)	-	(6,239,829)
   Transfer in / (out)			-	(147,343)	-	-	-
   Closing balance			13,582	209,268	560,245	-	2,242,934
   Credit loss allowance against advances*			(33)	(1,571)	(4,344)	-	(13,877)
   Property and equipment
   Purchase of property and equipment			-	-	-	8,555	66,834
   Other Assets
   Income / Markup Accrued			836	3,957	87,508	-	24,919
   Unrealized gain on forward foreign exchange contracts - outstanding			-	-	-	-	-
   Advances, deposits, advance rent and other prepayments			-	-	84,618	387,190	27,588
   Receivable from Pension Fund			-	-	-	-	17,312,255
   836				3,957	172,126	387,190	17,364,762
   Credit loss allowance against other assets* (13)				(55)	(58)	-	(234)

   Un-Audited June 30, 2026
   Directors	Key Management Personnel	Subsidiaries	Associates	Other Related Parties

   Audited December 31, 2025
   Directors	Key Management Personnel	Subsidiaries	Associates	Other Related Parties

   Notes To The Unconsolidated Condensed Interim Financial Statements (Un-Audited)

   For The Half Year Ended June 30, 2026

   ------------------------------------------------------------------------------------------------(Rupeesin '000)------------------------------------------------------------------------------------------------

   Borrowings

   -	-	31,769	-	-	-	-	33,725	-	-
   -	-	1,055,437	-	-	-	-	3,873,624	-	-
   -	-	(1,068,206)	-	-	-	-	(3,875,580)	-	-
   -	-	-	-	-	-	-	-	-	-
   -	-	19,000	-	-	-	-	31,769	-	-
   303,185	177,151	838,214	9,535,138	13,866,224	147,783	204,135	939,294	9,178,670	8,319,616
   5,872,224	1,006,694	30,471,189	271,922,144	904,604,780	7,527,883	1,634,686	49,471,655	80,084,735	243,465,421
   (5,864,113)	(973,869)	(30,568,707)	(263,499,601)	(806,679,897)	(7,372,481)	(1,960,080)	(49,572,735)	(79,728,267)	(237,800,375)
   -	3,195	-	-	(569)	-	298,410	-	-	(118,438)
   311,296	213,171	740,696	17,957,681	111,790,538	303,185	177,151	838,214	9,535,138	13,866,224
   1,245	43	148	30,990	161,595	3,290	6	-	99,635	5,457
   -	-	27,231	91,967	165	-	-	22,042	35,163	202
   -	-	1,809	-	-	-	-	20	-	-
   -	-	20,000	-	-	-	-	20,000	-	-
   1,245	43	49,188	122,957	161,760	3,290	6	42,062	134,798	5,659
   -	-	207	3,397	14,948	-	-	121	329	11,246
   -	-	-	-	2,518,001	-	-	-	-	1,828,407
   -	-	137,499	8,722,384	2,890,844	-	-	138,064	8,784,002	2,896,611
   -	-	399,511	-	-	-	-	1,120,840	-	-
   -	-	537,010	8,722,384	5,408,845	-	-	1,258,904	8,784,002	4,725,018

   Opening balance Borrowings / exchange adjustment during the period / year Settled during the period / year

   Transfer in / (out) - net Closing balance

   Deposits and other accounts Opening balance Received during the period / year Withdrawn during the period / year Transfer in / (out) - net Closing balance

   Other Liabilities Markup / return / interest payable Accrued expenses and other payable

   Unrealized loss on forward foreign exchange contracts - outstanding

   Advance received against sale of property

   Credit loss allowance against off-balance sheet obligations*

   Contingencies and Commitments

   Letter of Credit Bank guarantee

   Forward foreign exchange contracts (Notional)

   
   
   

   Un-Audited June 30, 2026
   Directors	Key Management Personnel	Subsidiaries	Associates	Other Related Parties

   Un-Audited June 30, 2025
   Directors	Key Management Personnel	Subsidiaries	Associates	Other Related Parties

   Notes To The Unconsolidated Condensed Interim Financial Statements (Un-Audited)

   For The Half Year Ended June 30, 2026

   42

   ------------------------------------------------------------------------------------------------(Rupeesin '000)------------------------------------------------------------------------------------------------

   Income
   Markup / return / interest earned	1,137	9,680	270,628	-	57,279	337	8,609	220,058	-	63,399
   Fee and commission income	-	-	94,956	655,487	12,966	-	-	197,859	656,492	11,939
   Dividend income	-	-	175,863	140,000	103,599	-	-	205,173	-	102,584
   Net gain / (loss) on forward foreign exchange contracts matured during the period	-	-	6,110	-	18,827	-	-	-	-	27,353
   Net gain / (loss) on sale of securities	-	-	423	8,452	30,449	-	11	-	2,192	(413)
   Gain on sale of Property and equipment	-	252	-	-	-	-	142	-	-	-
   Rent income	-	-	88,990	5,141	1,408	-	-	79,777	5,981	2,618
   Expense
   Markup / return / interest expensed	9,161	3,547	15,648	404,758	2,220,678	6,982	6,910	44,232	189,219	337,914
   Other Operating expenses
   Clearing expenses paid to NIFT	-	-	-	-	151,403	-	-	-	-	137,884
   Contribution to provident fund	-	-	-	-	433,326	-	-	-	-	350,214
   Rent expenses	-	-	-	50,725	43,971	-	-	-	46,108	31,513
   Cash sorting expenses	-	-	-	-	67,372	-	-	-	-	72,012
   Stationery expenses	-	-	-	-	181,586	-	-	-	-	242,513
   Security guards expenses	-	-	-	-	3,362	-	-	-	-	2,914
   Remuneration to key executives and non-executive directors fee	141,683	693,310	-	-	-	93,623	628,626	-	-	-
   Outsourcing service expenses	- -		- 117,379		-	- -		- 72,190		-
   E-dividend processing fee and CDC charges	- -		- -		6,965	- -		- -		7,634
   Travelling Expenses	- -		- -		54,629	- -		- -		62,372
   Hotel stay expenses	- -		- -		11,578	- -		- -		4,036
   Repair & Maintenance Charges	- -		- -		5,136	- -		- -		3,380
   Miscellaneous expenses and payments	- -		- -		2,919	- -		- -		3,762
   Utility expenses	- -		- -		-	- -		- -		710
   Insurance premium paid-net of refund	- -		- 679,605		-	- -		- 599,904		-
   Insurance claim settled	- -		- 141,326		-	- -		- 103,418		-
   Other Transactions
   Proceeds from sale of Property and equipment	- 535		- -		-	- 142		- -		-
   Sale of foreign currency	-	-	27,600,532	-	-	-	-	13,972,147	-	-
   Purchase of foreign currency	-	-	30,573,039	-	-	-	-	14,670,425	-	-
   Payments against home remittances	-	-	1,674,574	-	-	-	-	2,798,058	-	-
   Reimbursement of other expenses	-	-	237	-	-	-	-	74,094	-	-
   Sale of government securities	-	11,542	1,676,361	72,903,268	403,925,860	-	45,951	-	10,890,789	2,639,568
   Purchase of government securities	-	1,894	1,689,407	58,119,114	433,356,253	-	70,307	-	1,385,322	318,795
   Forward exchange contracts matured during the period	-	-	10,834,973	-	2,220,937	-	-	-	-	3,844,874

   230,337,134

   -