Transmission of quarterly report of Meezan Bank limited for the period ended september 30, 2025

October 30, 2025

The General Manager

Pakistan Stock Exchange Limited Stock Exchange Building

Stock Exchange Road Karachi.

FORM-8

MEBL/CS/PSX-20/103/2025

TRANSMISSION OF QUARTERLY REronT oF nEEZAN BANK LIMITED FOR THE PERIOD ENDED SEPTEMDER 30, 2025

Dear Sir,

We have to inform you that the Quarterly Report of Meezan Bank for the period ended September 30, 2025 have been transmitted through PUCARS and is also available on Bank's website.

You may please inform the TRE Certificate Holders of the Exchange accordingly. Yours Sincerely,

Muhammad Sohail Khan

Company Secretary Encl: As above.

SEPTEMBER 30, 2025

C O N T E N T S

Corporate Information 03 Directors' Review 04 Condensed Interim Unconsolidated Statement of Financial Position 13 Condensed Interim Unconsolidated Statement of Profit and Loss Account 14 Condensed Interim Unconsolidated Statement of Comprehensive Income 15 Condensed Interim Unconsolidated Statement of Changes in Equity 16 Condensed Interim Unconsolidated Cash Flow Statement 18 Notes to and Forming Part of the Condensed Interim Unconsolidated Financial Information 19 Condensed Interim Consolidated Statement of Financial Position 50 Condensed Interim Consolidated Statement of Profit and Loss Account 51 Condensed Interim Consolidated Statement of Comprehensive Income 52 Condensed Interim Consolidated Statement of Changes in Equity 53 Condensed Interim Consolidated Cash Flow Statement 55 Notes to and Forming Part of the Condensed Interim Consolidated Financial Statements 56

01

C O R P O R A T E I N F O R M A T I O N AS OF SEPTEMBER 30, 2025

Board of Directors

Riyadh S. A. A. Edrees Bader H. A. M. A. AlRabiah Saad Ur Rahman Khan Faisal Fahad AlMuzaini Tariq Mahmood Pasha Zine Elabidine Bachiri Mohammad Abdul Aleem Nausheen Ahmad

Abdulrazzaq T.A.M. Razooqi Irfan Siddiqui

Chairman

Vice Chairman

President & CEO (Executive Director)

Shariah Board

Management

Justice (Retd.) Muhammad Taqi Usmani Dr. Muhammad Imran Ashraf Usmani Sheikh Esam Mohamed Ishaq

Mufti Zubair Ahmed

Mufti Muhammad Naveed Alam

Irfan Siddiqui Syed Amir Ali

Chairman

Resident Shariah Board Member

President & CEO Deputy CEO

Board Audit Committee

Board Risk

Management Committee

Board Human Resources, Remuneration & Compensation Committee

Board Information Technology Committee

Board IFRS 9 Committee

Mohammad Abdul Aleem Saad Ur Rahman Khan Tariq Mahmmod Pasha Abdulrazzaq T.A.M. Razooqi

Saad Ur Rahman Khan Bader H. A. M. A. AlRabiah Zine Elabidine Bachiri Abdulrazzaq T.A.M. Razooqi

Riyadh S. A. A. Edrees Mohammad Abdul Aleem Nausheen Ahmad

Saad Ur Rahman Khan Riyadh S. A. A. Edrees Bader H. A. M. A. AlRabiah Irfan Siddiqui

Riyadh S. A. A. Edrees Faisal Fahad AlMuzaini Irfan Siddiqui

Resident Shariah Board Member Chief Financial Officer

Company Secretary Auditors

Legal Adviser

Registered Office and Head Office

E-mail Website

Shares Registrar

Mufti Muhammad Naveed Alam Syed Imran Ali Shah Muhammad Sohail Khan

A. F. Ferguson & Co., Chartered Accountants Haidermota & Co. Advocates

Meezan House

C-25, Estate Avenue, SITE, Karachi - 75730, Pakistan

Phone: (92-21) 38103500, 37133500, Fax: (92-21) 36406056

24/7 Call Centre: (92-21) 111-331-331 & 111-331-332

info@meezanbank.com

https://www.meezanbank.com https://www.meezanbank.pk

THK Associates (Pvt.) Ltd

Plot No, 32-C, Jami Commercial, Street 2, DHA, Phase VII, Karachi - 75500, Pakistan Phone: (92-21) 111-000-322, 35310191-6

Email: secretariat@thk.com.pk, sfc@thk.com.pk Website: https://www.thk.com.pk

03

MEBL SEP-2025

D I R E C T O R S ' R E V I E W

The Board of Directors is pleased to present the condensed interim unaudited unconsolidated and consolidated financial statements of Meezan Bank Limited for the quarter and nine months ended September 30, 2025.

Economy

Pakistan's economy maintained its recovery momentum through FY2025, supported by the stabilisation measures introduced to address the severe macroeconomic challenges faced between 2022 and 2024. The ongoing improvement reflects a combination of prudent fiscal management, disciplined monetary policy stance and the initiation of long-awaited structural reforms aimed at restoring investor confidence and strengthening long-term economic resilience. A notable development during the year was progress in the energy sector, where reforms to reduce inefficiencies and fiscal leakages have improved medium-term sustainability. Alongside a more stable political environment and a stronger external position, these factors have collectively supported a more optimistic economic outlook.

During FY2025, Pakistan's real GDP grew by 2.68%, reflecting the positive impact of broad-based stabilisation measures across key macroeconomic segments. Notable resilience was observed on the fiscal, monetary, and external fronts, supported by enhanced revenue mobilisation, prudent public expenditure management and a reduction in the fiscal deficit.

Inflationary pressures, which had peaked at historic levels in FY2023, eased considerably during FY2025. Consumer Price Index (CPI) inflation had declined to 5.6% for the month of September 2025, reflecting a marked improvement in overall price stability. This disinflationary trend allowed the State Bank of Pakistan (SBP) to adopt a more accommodative monetary policy stance, resulting in a cumulative reduction of 1,100 basis points in the policy rate-from 22% in June 2024 to 11% by May 2025. This substantial monetary easing is expected to support a recovery in private sector credit, while also stimulating domestic investment and consumer demand. However, the SBP has cautioned that temporary upward pressure on prices may re-emerge due to supply chain disruptions in food items following the recent floods.

Financial markets responded favourably to the improving macroeconomic environment. The Pakistan Stock Exchange (PSX) reached an all-time high, closing at 165,494 points by the end of September 2025-an impressive increase of 44% compared to 115,127 points at the end of 2024. This market rally was driven by a combination of declining interest rates, robust corporate earnings and renewed investor confidence in the Government's reform agenda.

External sector indicators also strengthened further. Workers' remittances rose to $9.5 billion in the first quarter of FY2026 - up 8.4% from $8.8 billion in the comparative period last year - reflecting both policy measures and a rebound in regional labour markets. In May 2025, the International Monetary Fund (IMF) approved the disbursement of a $1 billion tranche under the Extended Fund Facility (EFF), reaffirming Pakistan's commitment to reform and unlocking additional multilateral and bilateral support. As a result, Pakistan's overall forex reserves increased by 24%, reaching $19.8 billion by September end 2025, up from $16 billion at the end of CY2024. The Pakistani Rupee (PKR) exhibited relative stability during the period, depreciating marginally to PKR 281.3 per USD by September 2025, compared to PKR 278.6 in December 2024. This orderly adjustment reflected strengthened external buffers, improved foreign exchange liquidity, and greater transparency in exchange rate management.

Overall, the macroeconomic outlook for Pakistan looks increasingly positive. Key indicators such as declining inflation, reduced interest rates, strengthening foreign exchange reserves collectively signal a supportive environment for sustained growth. However, downside risks remain - including external vulnerabilities linked to global commodity prices, geopolitical tensions and shifts in global monetary policy as well as domestic developments that could drastically impact the economy such as the 2025 Pakistan floods. Sustained progress on structural reforms, especially in the energy and taxation sectors, together with continued improvements in governance and institutional capacity, will remain critical for maintaining macroeconomic stability and fostering inclusive, long-term growth.

04

D I R E C T O R S ' R E V I E W Financial Highlights

By the grace of Allah Almighty, Meezan Bank continued to deliver resilient performance during the first nine months of 2025. The Bank reported a Profit After Tax of Rs 67.2 billion, compared to Rs 77.1 billion in the corresponding period of the previous year - reflecting a 13% decline primarily due to a significantly lower policy rate environment, implementation of minimum deposit rate on Islamic Banks and an increase in the applicable tax regime. Basic Earnings per Share (EPS) stood at Rs 37.42 as of September 2025, against Rs 43.00 in the same period last year. The Bank maintained a strong Return on Equity (ROE) of 34.6% and Return on Assets (ROA) of 2.2% for the period under review. Alhamdulillah, the Bank consistently has one of the best ROEs in the industry, in line with its commitment to deliver sustainable value to shareholders. Our consistent profitability coupled with a disciplined approach to balancing dividend payouts with profit retention, has resulted in strong internal capital generation. As a result, the Bank's Capital Adequacy Ratio (CAR) remains strong at over 23%, well above the regulatory requirement.

The Board is pleased to announce an interim cash dividend of Rs 7.00 (70%) for the third quarter bringing the total cash dividend payout for the nine months ended September 30, 2025 to Rs 21.00 per share (210%) as Rs 14.00 per share (140%) interim cash dividend was paid for the first half year.

The Bank continued its longstanding tradition of declaring dividends every year since its listing on the Pakistan Stock Exchange. Meezan Bank has upheld its position as the second most valuable bank in Pakistan, with a market capitalization of $2.8 billion as of September 30, 2025. This reflects the continued confidence of investors in the Bank's leadership, operational performance and prospects for sustainable growth. The financial highlights of Meezan Bank for the period are presented below:

Rupees in millions

Rupees in millions

05

D I R E C T O R S ' R E V I E W

The Bank continued its growth trajectory in deposit portfolio by registering a growth of 23% in first nine months of 2025 and reported total deposits of Rs 3.18 trillion as of September 30, 2025. Current Account (CA) deposits comprise almost half of the total deposit portfolio, totalling Rs

1.56 trillion. Meanwhile, Current and Savings Account (CASA) deposits collectively represent 94% of the deposit base, amounting to Rs 2.98 trillion.

As of September 2025, total assets stood at Rs 4.2 trillion, reflecting a 9% increase over December 2024. The investment portfolio expanded significantly by 34% over December 2024, reaching Rs

2.5 trillion. This growth is primarily attributable to the regular Sukuk auctions conducted by the Government of Pakistan which have helped ease the liquidity management challenges historically faced by the Islamic Banking Industry (IBI). Conversely, the gross financing portfolio declined by 25% from Rs 1.56 trillion in December 2024 to Rs 1.17 trillion at the end of the current period.

Meezan Bank continues to demonstrate exemplary asset quality, outperforming industry benchmarks with a Non-Performing Financing (NPF) ratio of 2.6%. The Bank maintains a strong provisioning position against non-performing financings, resulting in a coverage ratio exceeding 146%.

Returns from financing, investments and placements declined to Rs 312 billion during the period under review, compared to Rs 378 billion in the corresponding period of the previous year. This decrease is primarily attributable to the lower policy rate. For the nine months' period under review, the average Policy Rate stood at 11.6% marking a substantial reduction of 946 basis points from 21.0% in September 2024. Similarly, expense on Deposits and Other Dues declined to Rs 124 billion, compared to Rs 164 billion in September 2024, reflecting a 25% decrease.

Fee, commission and other income recorded strong growth, increasing by 42% to Rs 25.8 billion from Rs 18.2 billion in September 2024. Core fee and commission income rose by 9% to Rs 16.8 billion, driven primarily by higher contributions from trade handling and branch banking fees.

Operating and other expenses experienced a decrease (6%) from Rs 66.8 billion to Rs 62.7 billion mainly due to lower variable compensation expense.

Meezan Bank's mobile application continues to lead the digital banking landscape, upholding its strong reputation for user-friendliness, speed and high availability. With a growing user base, the app remains a vital platform for customers seeking efficient and seamless banking services. The app's consistently high performance is further validated by its sustained top-tier ratings on both the Google Play Store and Apple App Store over the past five years.

Meezan Bank remains committed to its digital transformation strategy, focused on enhancing customer experience and optimizing back-office operations. Following its hybrid growth model, the Bank has expanded its physical footprint in underserved regions while actively onboarding customers through digital channels. Our strategically dispersed branch network now includes 1,073 branches nationwide.

The VIS Credit Rating Company Limited has reaffirmed Meezan with the highest possible credit rating - 'AAA' (Triple A) rating for the Long Term and an 'A1+' (A-One Plus) rating for the Short Term, maintaining a stable outlook.

06

D I R E C T O R S ' R E V I E W Outlook

Meezan Bank remains steadfast in its commitment to supporting the economic growth and financial stability of the country by continuing to lead the development of Islamic Banking. Our strategic initiatives are closely aligned with the Government's policy priorities on Islamic Finance and comply fully with the Honourable Federal Shariat Court's directive to transition towards a completely Shariah-compliant financial system. Our growth strategy emphasizes maintaining a prudent and balanced approach, diversifying across key sectors, and consistently surpassing regulatory standards for financial stability. We are actively expanding our presence through both physical branch networks and digital platforms, with a strong focus on enhancing the quality of our digital services to consolidate our position as an industry leader.

During the current year, the Bank has encountered several emerging challenges, including the effects of a reduced policy rate, the implementation of a Minimum Deposit Rate (MDR) on Savings Deposits and a persistently high tax environment. In response to these pressures, the Bank has strategically prioritized the growth of its core deposit base to mitigate their impact and sustain financial resilience.

We extend our sincere gratitude to the State Bank of Pakistan, the Ministry of Finance and the Securities and Exchange Commission of Pakistan for their unwavering dedication to promoting a sustainable Islamic financial system in Pakistan. Our significant accomplishments during the year would not have been possible without the proactive support of our diverse customer base, to whom we offer our heartfelt thanks. We also wish to express our deep appreciation to the Board of Directors, members of the Shariah Board, our shareholders and the holders of Additional Tier I Sukuk and Subordinated Sukuk (Tier II) for their continued trust and support, which have been instrumental in establishing Meezan Bank as the country's premier Islamic banking institution.

The Board wishes to express its heartfelt appreciation to every member of our dedicated team for their exemplary efforts and unwavering commitment to advancing the mission of Islamic banking. Above all, we humbly acknowledge and offer our profound gratitude to Allah Almighty for His continued blessings upon the Bank and all its stakeholders. These blessings have been fundamental in enabling our significant achievements within a relatively short period. We earnestly seek His ongoing guidance and support, praying for the strength and wisdom to fulfil our vision of establishing "Islamic banking as banking of first choice."

On behalf of the Board

Riyadh S.A.A. Edrees

Chairman

Irfan Siddiqui

President & CEO

Lahore:

October 24, 2025

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: ر�U

2025 ،s. � ا 24

12

CONDENSED INTERIM UNCONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)

AS AT SEPTEMBER 30, 2025

Note

September 30,

2025

(Unaudited)

December 31,

2024

(Audited)

ASSETS

Rupees in 000

The annexed notes 1 to 42 form an integral part of these unconsolidated condensed interim financial statements.

Riyadh S. A. A. Edrees

Chairman

Irfan Siddiqui

President & Chief Executive

Mohammad Abdul Aleem

Director

Bader H.A.M.A. AlRabiah

Director

Syed Imran Ali Shah

Chief Financial Officer

13

CONDENSED INTERIM UNCONSOLIDATED STATEMENT OF PROFIT AND LOSS ACCOUNT (UNAUDITED)

FOR THE QUARTER AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025

Note

Quarter ended

September 30,

2025

Quarter ended

September 30,

2024

(Restated)

Nine Months period ended September 30,

2025

Nine Months period ended September 30,

2024

(Restated)

Rupees

Rupees

(Restated) (Restated)

Basic earnings per share Diluted earnings per share

33 11.70

34 11.63

14.28

14.18

37.42

37.20

43.00

42.74

The annexed notes 1 to 42 form an integral part of these unconsolidated condensed interim financial statements.

Riyadh S. A. A. Edrees

Chairman

14

Irfan Siddiqui

President & Chief Executive

Mohammad Abdul Aleem

Director

Bader H.A.M.A. AlRabiah

Director

Syed Imran Ali Shah

Chief Financial Officer

CONDENSED INTERIM UNCONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

FOR THE QUARTER AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025

Quarter ended

September 30,

2025

Quarter ended

September 30,

2024

Nine Months period ended September 30,

2025

Nine Months period ended September 30,

2024

(Restated) (Restated)

Rupees in '000

Profit after taxation for the period

Other comprehensive income / (loss)

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

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

• Gain on sale of debt investments carried at FVOCI - reclassified to the statement of profit and

  loss account - net of tax

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

• Movement in surplus on revaluation of equity investments through FVOCI - net of tax

Total Comprehensive Income for the period

21,061,990

(1,372,596)

(161,326)

1,226,908

20,754,976

25,619,013

8,902,538

(86,373)

7,533

34,442,711

67,225,794

(5,730,488)

(475,687)

1,556,044

62,575,663

77,063,196

5,994,714

(145,286)

604,892

83,517,516

The annexed notes 1 to 42 form an integral part of these unconsolidated condensed interim financial statements.

Riyadh S. A. A. Edrees

Chairman

Irfan Siddiqui

President & Chief Executive

Mohammad Abdul Aleem

Director

Bader H.A.M.A. AlRabiah

Director

Syed Imran Ali Shah

Chief Financial Officer

15

CONDENSED INTERIM UNCONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025

Capital reserves

Revenue

Surplus / (deficit) on Unappro-

Share capital

Share premium

Statutory reserve *

Non -Distributable

Employee share option

reserve

General reserve

revalution of

Investments Non-banking

priated profit

Total

Capital Reserve compensation Assets

- Gain on Bargain Purchase

reserve

Rupees in

000

Balance as at January 01, 2024 (Audited)

17,912,532

2,626,441

30,617,082

3,117,547

654,321

66,766

10,920,597

- 118,992,231 184,907,517

Impact of adoption of IFRS 9 - net of tax

Profit after taxation for the nine months period ended September 30, 2024 - Restated

Other comprehensive income / (loss) for nine months period ended September 30, 2024 - net of tax

• Movement in surplus on revaluation of investments in debt instruments at FVOCI - net of tax

• Loss on sale of debt investments carried at FVOCI

  reclassified to statement of profit or loss account - net of tax

• Movement in surplus on revaluation of equity investments carried at FVOCI - net of tax

Total other comprehensive income / (loss) - net of tax

Transfer from surplus on revaluation of assets to unapprorpriated profit - net of tax

Recognition of share based compensation

Other appropriations

Transfer to statutory reserve*

Transactions with owners recognised directly in equity

Final cash dividend for the year 2023 @ Rs 8 per share

First interim cash dividend for the year 2024 @ Rs 7 per share Second interim cash dividend for the year 2024 @ Rs 7 per share

-

-

-

-

-

-

-

-

-

-

-

-

- -

- -

- -

- -

- -

- 7,706,320

- -

- -

- -

- -

- 422,024

- -

- 1,188,390

- -

- 6,454,320

- (512,979)

- -

- -

- 25,760

- 77,063,196

- -

- 512,979

- -

- (7,706,320)

1,214,150

77,063,196

6,454,320

-422,024

-

Issue of 3,487,520 shares under the

- - - - - -

- - (39,431,984) (39,431,984)

Employees shares option scheme (note 34.2)

34,875

477,812 -

- (299,231) -

- - 45,432

258,888

Balance as at September 30, 2024 (Unaudited) - restated

Profit after taxation for the quarter ended December 31, 2024 - Restated

Other comprehensive income / (loss) for the

half year ended December 31, 2024 - net of tax

• Movement in surplus on revaluation of investments in debt instruments at FVOCI - net of tax

• Loss on sale of debt investments carried at FVOCI

  reclassified to statement of profit or loss account - net of tax

• Remeasurement loss on defined benefit obligations - net of tax

• Movement in surplus on revaluation of equity investments carried at FVOCI - net of tax

17,947,407

-

-

-

-

-

-

-

-

-

3,104,253

-

-

-

-

-

38,323,402

-

3,117,547

-

777,114

-

66,766

-

18,050,328

-

- 149,501,294 230,888,111

- 24,444,328 24,444,328

Total other comprehensive income - net of tax

Transfer from surplus on revaluation of assets to unapprorpriated profit - net of tax

Recognition of share based compensation

Other appropriations

Transfer to statutory reserve*

Transactions with owners recognised directly in equity

Third interim cash dividend for the year 2024 @ Rs 7 per share

Balance as at December 31, 2024 (Audited)

- - -

- - -

- - -

- - 2,444,432

- -

-

-

-

-

-

-

-

-

- -

- 168,753

- -

- 4,255,023

4,096,974

(1,468,194)

-

1,626,243

-

-

-

-

- (164,159)

- -

- -

- (208,738)

-

-(208,738)

-

-

-

-

-

- 164,159

- -

- (2,444,432)

4,046,285

4,096,974

(1,468,194)

(208,738)

1,626,243

-168,753

-

16

CONDENSED INTERIM UNCONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025

Capital reserves

Revenue

Surplus / (deficit) on Unappro-

Share capital

Share premium

Statutory reserve *

Non -Distributable

Employee share option

reserve

General reserve

revalution of

Investments Non-banking

priated profit

Total

Capital Reserve compensation Assets

- Gain on Bargain Purchase

reserve

Rupees in 000

period ended September 30, 2025 - net of tax

Loss on sale of debt investments at FVOCI

*This represents reserve created under section 21(i)(b) of the Banking Companies Ordinance,1962.

The annexed notes 1 to 42 form an integral part of these unconsolidated condensed interim financial statements.

Riyadh S. A. A. Edrees

Chairman

Irfan Siddiqui

President & Chief Executive

Mohammad Abdul Aleem

Director

Bader H.A.M.A. AlRabiah

Director

Syed Imran Ali Shah

Chief Financial Officer

17

CONDENSED INTERIM UNCONSOLIDATED C ASH FLOW STATEMENT (UNAUDITED)

FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025

Note

Nine Months period ended September 30,

2025

Nine Months period ended September 30,

2024

(Restated)

CASH FLOW FROM OPERATING ACTIVITIES

Rupees in 000

Profit before taxation Less: Dividend income

Adjustments:

Depreciation

Net profit / return Amortisation

Depreciation on right-of-use assets

Amortisation of lease liability against right-of-use assets Credit loss allowance / provisions and write offs /

(reversal of provisions / credit loss allowance) - net Share based compensation expense

Unrealised (gain) / loss - FVTPL

Gain on sale of property and equipment

Decrease / (increase) in operating assets

Due from financial institutions Islamic financings and related assets

Other assets (excluding advance taxation and profit receivable)

Increase in operating liabilities

Bills payable

Due to financial institutions Deposits and other accounts

Other liabilities (excluding current taxation and profit payable)

Net profit / return received Net profit / return paid Income tax paid

Net cash generated from operating activities

CASH FLOW FROM INVESTING ACTIVITIES

Net (investments) / divestments in amortised cost securities Net investments in securities classified as FVOCI

Net investments in securities classified as FVTPL Net investment in associates

Investment in subsidiaries Dividends received

Investments in property and equipment Investments in intangible assets

Proceeds from sale of property and equipment

Net cash used in investing activities

CASH FLOW FROM FINANCING ACTIVITIES

Payment of lease liability against right-of-use assets Redemption of subordinated sukuks

Proceed against issue of shares Dividend paid

Net cash used in financing activities

Net Increase in cash and cash equivalents

Cash and cash equivalents at the beginning of the period Expected credit loss allowance on cash and cash equivalents - net

Cash and cash equivalents at the end of the period

29

29

29

25

31

27

28

18

34.2

31

35

147,627,330

(924,760) 146,702,570

(176,495,177) (29,792,607)

368,661,535

316,765,669 655,634,597

275,237,878

(126,140,802)

(75,450,144) 729,281,529

(659,308,426)

(44,896,469)

25,076,634

272,071,555

297,148,189

163,602,995

(1,069,021) 162,533,974

(205,339,497) (42,805,523)

(133,453,498)

319,383,818 143,124,797

329,556,431

(164,754,419)

(87,382,688) 220,544,121

(163,389,241)

(43,031,024)

14,123,856

251,352,454

265,476,310

The annexed notes 1 to 42 form an integral part of these unconsolidated condensed interim financial statements.

Riyadh S. A. A. Edrees

Chairman

18

Irfan Siddiqui

President & Chief Executive

Mohammad Abdul Aleem

Director

Bader H.A.M.A. AlRabiah

Director

Syed Imran Ali Shah

Chief Financial Officer

NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENT S (UNA UDITED )

FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025

1

1.1

1.2

1.3

1.4

LEGAL STATUS AND NATURE OF BUSINESS

Meezan Bank Limited (the Bank) was incorporated in Pakistan on January 27, 1997, as a public limited company under the provisions of the repealed Companies Ordinance, 1984 (now the Companies Act, 2017), and its shares are quoted on the Pakistan Stock Exchange Limited. The Bank was registered as an 'Investment Finance Company' on August 8, 1997, and carried on the business of investment banking as permitted under SRO 585(I)/87 dated July 13, 1987, in accordance and in conformity with the principles of Islamic Shariah. A 'Certificate of Commencement of Business' was issued to the Bank on September 29, 1997.

The Bank was granted a 'Scheduled Islamic Commercial Bank' license on January 31, 2002 and formally commenced operations as a Scheduled Islamic Commercial Bank with effect from March 20, 2002, on receiving notification in this regard from the State Bank of Pakistan (the SBP) under section 37 of the State Bank of Pakistan Act, 1956. Currently, the Bank is engaged in corporate, commercial, consumer, investment and retail banking activities.

The Bank was operating through one thousand and seventy three branches as at September 30, 2025 (December 31, 2024: one thousand and fifty one branches). Its registered office is at Meezan House, C-25, Estate Avenue, SITE, Karachi, Pakistan.

The VIS Credit Rating Company Limited (VIS) has reaffirmed the Bank's medium to long-term rating as 'AAA' and short-term rating as 'A1+' on June 30, 2025 (2024: 'AAA' and 'A1+' dated June 28, 2024).

1. BASIS OF PRESENTATION

   The Bank provides Islamic financing and related assets mainly through Murabaha, Istisna, Tijarah, Ijarah, Diminishing Musharakah, Running Musharakah, Bai Muajjal, Musawammah, Service Ijarah, Wakalah, Wakalah Tul Istithmar including under Islamic Export Refinance Scheme and various long term islamic refinancing facilities of the State Bank of Pakistan respectively.

   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 utilised and the appropriate portion of profit thereon. The income on such financing is recognised in accordance with the principles of Islamic Shariah. However, income, if any, received which does not comply with the principles of Islamic Shariah is recognised as charity payable if so directed by the Resident Shariah Board Member (RSBM) of the Bank.

2. STATEMENT OF COMPLIANCE

   1. These unconsolidated condensed interim financial statements (here-in-after referred to as "financial statement") 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 "Interim Financial Reporting", International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as are notified under the Companies Act, 2017;

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

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

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

      19

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

      NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENT S (UNA UDITED )

      FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025

   2. The disclosures made in these unconsolidated condensed interim financial statements have been limited based on the format prescribed by the SBP through BPRD Circular Letter No. 02 dated February 09, 2023 and the requirements of International Accounting Standard 34, "Interim Financial Reporting". These do not include all the information and disclosures required for annual financial statements, and therefore should be read in conjunction with the annual audited unconsolidated financial statements of the Bank for the year ended December 31, 2024.

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

   3. 3.3.1

      Standards, interpretations of and amendments to the published accounting and reporting standards that are effective in the current period:

      There are certain new and amended standards, issued by International Accounting Standards Board (IASB), interpretations and amendments that are mandatory for the Bank's accounting periods beginning on or after January 1, 2025, but are considered not to be relevant or do not have any material effect on the Bank's operations and are therefore not detailed in these unconsolidated condensed interim financial statements. The comparative period has been restated to incorporate the impact of adoption of IFRS 9 as disclosed in note 5.1.1.

   4. Standards, interpretations of and amendments to the published accounting and reporting standards that are not yet effective:

There are certain new and amended standards, issued by International Accounting Standards Board (IASB), interpretations and amendments that are mandatory for the Bank's accounting periods beginning on or after January 01, 2026 but are considered not to be relevant or will not have any material effect on the Bank's financial statements except for:

• the new standard - IFRS 18 'Presentation and Disclosure in Financial Statements' (published in April 2024) with applicability date of January 01, 2026 by IASB. IFRS 18 is yet to be adopted in Pakistan. IFRS 18 when adopted and applicable shall impact the presentation of 'Statement of Profit and Loss Account' with certain additional disclosures in the unconsolidated condensed interim financial statements.

• amendments to IFRS 9 'Financial Instruments' which clarify the date of recognition and derecognition of a financial asset or financial liability including settlement of liabilities through banking instruments and channels including electronic transfers. The amendment when applied may impact the timing of recognition and derecognition of financial liabilities.

4.

4.1

4.2

4.3

4.4

20

BASIS OF MEASUREMENT

Accounting Convention

These unconsolidated condensed interim financial statements have been prepared under the historical cost convention, except for certain non banking assets acquired in satisfaction of claims which are stated at revalued amounts, investment classified at fair value through profit or loss and fair value through other comprehensive income, commitments in respect of certain foreign exchange contracts which are measured at fair value, staff retirement benefits and compensated absences which are carried at present value.

Functional and presentation currency

Items included in these unconsolidated condensed interim financial statements are measured using the currency of the primary economic environment in which the Bank operates. These unconsolidated condensed interim financial statements are presented in Pakistani Rupees, which is the Bank's functional and presentation currency.

Rounding off

Figures have been rounded off to the nearest thousand rupees unless otherwise stated.

Critical accounting estimates and judgments

The preparation of these unconsolidated condensed interim financial statements in conformity with the accounting and reporting standards as applicable in Pakistan requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and income and expenses as well as in the disclosure of contingent liabilities. It also requires management to exercise judgment in application of its accounting policies. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. These estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised, if the revision affects only that period, or in the period of revision and in future periods if the revision affects both current and future periods.

NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENT S (UNA UDITED )

FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025

5

5.1

5.1.1

5.1.2

5.1.3

The significant judgments made by the management in applying the Bank's accounting policies and the key sources of estimation were the same as those applied in the preparation of unconsolidated annual audited financial statements for the year ended December 31, 2024.

MATERIAL ACCOUNTING POLICY INFORMATION AND FINANCIAL RISK MANAGEMENT POLICIES

The accounting policies applied in the preparation of these unconsolidated condensed interim financial statements are the same as applied in the preparation of the annual audited unconsolidated financial statements of the Bank for the year ended December 31, 2024. Impacts of adoption of IFRS 9 for the comparative period is disclosed in note 5.1.

The financial risk management objectives and policies adopted by the Bank are consistent with those disclosed in the annual audited unconsolidated financial statements for the year ended December 31, 2024.

IFRS - 'Financial Instruments'

The Bank had adopted IFRS 9 effective from January 01, 2024 with modified retrospective approach for restatement permitted under IFRS 9. The cumulative impact of initial application amounting to Rs. 1,214 million was recorded as an adjustment to equity at the beginning of the previous accounting period.

The Bank, in compliance with extended timelines prescribed in SBP's BPRD Circular Letter No. 16 dated July 29, 2024 and BPRD Circular Letter No. 01 dated January 22, 2025 had incorporated certain IFRS 9 related impacts in the last quarter of 2024. Therefore, the unconsolidated condensed interim statement of profit and loss account for the nine months period ended September 30, 2024 have been restated to incorporate these impacts. Had the restatement not been incorporated the profit after tax and total comprehensive income for the nine months period ended September 30, 2024 would have been higher by Rs. 463 million and earnings per share would have been higher by Rs. 0.26.

The SBP has directed the Banks through its BPRD Circular Letter No. 01 dated January 22, 2025 to continue the existing revenue recognition methodology, including the requirements of IFAS 1 and IFAS 2 until further instructions. Had IFRS 9 been adopted in its entirety for revenue recognition from Islamic operations profit / return earned on Islamic financing and related assets in unconsolidated statement of profit and loss account for the nine months period ended September 30, 2025 would have been lower by Rs. 1,963 million and taxation would have been lower by Rs 1,021 million. Further, an unappropriated profit in unconsolidated statement of changes in equity would have been higher by Rs 4,374 million.

In addition, the SBP in a separate instructions BPRD/RPD/822456/25 dated January 22, 2025 has allowed extension for application of Effective Profit Rate up to December 31, 2025.

1. CASH AND BALANCES WITH TREASURY BANKS

   Note

   Septemeber 30,

   2025

   (Unaudited)

   December 31,

   2024

   (Audited)

   In hand
   - local currency		58,194,197		54,273,193
   - foreign currencies		4,217,507		4,243,363
   With the State Bank of Pakistan in		62,411,704		58,516,556
   - local currency current accounts		130,168,172		147,811,687
   - foreign currency current accounts		16,943,132		15,694,215
   	6.1	147,111,304		163,505,902
   With the National Bank of Pakistan in
   - local currency current accounts		69,634,692	38,694,972
   National Prize Bonds	6.2	345	22,945
   Less: Credit loss allowance held against cash and

   Rupees in 000

   balances with treasury banks

   (2,968)

   (6,117)

   Cash and balances with treasury banks - net of

   credit loss allowance

   279,155,077

   260,734,258

   6.1

   These include local and foreign currency amounts required to be maintained by the Bank with the SBP under the Banking Companies Ordinance, 1962 and /or stipulated by the SBP. These accounts are non-remunerative in nature.

   21

   NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENT S (UNA UDITED )

   FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025

   6.2

   These represent the national prize bonds received from customers for onward surrendering to SBP. The Bank, as a matter of Shariah principle, does not deal in prize bonds.

   Note

   Septemeber 30,

   2025

   (Unaudited)

   December 31,

   2024

   (Audited)

2. BALANCES WITH OTHER BANKS

   In Pakistan

   Rupees in 000

   • in current accounts

     Outside Pakistan

   • in current accounts

   • in deposit accounts

   7.1

   13,150,367

   4,539,534

   1,527,642

   6,067,176

   10,723,532

   2,437,740

   280,223

   2,717,963

   Less: Credit loss allowance held against balances with other banks Balances with other banks - net of credit loss allowance

   (24,057)

   19,193,486

   (16,545)

   13,424,950

   7.1

   This represents the balance in the remunerative account maintained with financial institutions outside Pakistan. The return on these balances are 2.27% (December 31, 2024: 3.50%) per annum.

   Note

   Septemeber 30,

   2025

   (Unaudited)

   December 31,

   2024

   (Audited)

3. DUE FROM FINANCIAL INSTITUTIONS Rupees in 000

   Bai Muajjal receivable - inside Pakistan:

   - from scheduled banks / financial institutions - Secured	8.1	19,998,686		34,964,299
   - from other Financial Institution		15,500		15,500
   		20,014,186		34,979,799
   Musharakah placements - outside Pakistan	8.2	22,505,384		-
   		42,519,570		34,979,799
   Less: Credit loss allowance held against due from financial institutions	8.3	(15,713)		(15,500)
   Due from financial institutions - net of credit loss allowance		42,503,857		34,964,299

   1. The effective average return on this product is 10.65% (December 31, 2024: 12.17%) per annum. The balance has maturity in November 2025 (December 31, 2024: July 2025).

   2. The effective average return on this product is 4.02% (December 31, 2024: Nil) per annum. The balances have maturity latest by December 2025.

      Note September 30, 2025 (Unaudited) December 31, 2024 (Audited)

   3. Due from financial institutions -particulars of credit loss allowance

      Due from financial institutions

      Credit loss allowance held

      Due from financial institutions

      Credit loss allowance held

      Domestic

      Rupees in 000

      Stage 1 / Performing Stage 2 / Under performing Stage 3 / Non-performing	42,504,070 -		213 -		34,964,299 -		- -
      Substandard Doubtful Loss	- -15,500		- -15,500		- -15,500		- -15,500
      15,500		15,500		15,500		15,500
      Total 42,519,570		15,713		34,979,799		15,500

      22

      NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENT S (UNA UDITED )

      FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025
      
      
      
      
      
      

4. INVESTMENTS

   Note

   September 30, 2025 (Unaudited) December 31, 2024 (Audited)

   1. Investments by type:

      FVTPL securities

      1,018,272	-	-	1,018,272
      79,700	-	17,265	96,965
      933,000	-	6,830	939,830

      • Federal Government securities

      • Units of mutual funds

        2,080,201,126	-	28,321,592	2,108,522,718
        5,478,315	-	7,563,300	13,041,615
        125,676,827	338,176	(10,866)	125,327,785
        8,015,977	605	69,375	8,084,747

      • Non Government sukuks

        Cost / amortised cost

        Credit loss allowance

        Surplus / (deficit)

        Cost / amortised cost

        
        
        

        Credit loss allowance

        Surplus / (deficit)

        FVOCI securities	2,030,972	-	24,095	2,055,067		5,770,649	-	8,549	5,779,198
        - Federal Government Securities 9.1.1 and 9.1.3						1,317,019,755	-	37,668,822	1,354,688,577
        - Shares						6,323,475	-	4,817,853	11,141,328
        - Non Government sukuks 9.2						126,953,624	344,437	3,711,417	130,320,604
        - Foreign securities						4,028,707	429	(70,608)	3,957,670
        Amortized cost securities	2,219,372,245	338,781	35,943,401	2,254,976,865		1,454,325,561	344,866	46,127,484	1,500,108,179
        - Federal Government securities 9.1.1 and 9.5	253,871,209	-	-	253,871,209		362,725,910	-	-	362,725,910
        In related parties Associates
        - Units of mutual funds	859,283	-	-	859,283	859,283		-	-	859,283
        Subsidiaries
        - Shares	1,063,050	-	-	1,063,050	1,063,050		-	-	1,063,050

        4,778,499	-	-	4,778,499
        59,150	-	7,483	66,633
        933,000	-	1,066	934,066

        Total Investments 2,477,196,759 338,781 35,967,496 2,512,825,474 1,824,744,453 344,866 46,136,033 1,870,535,620

        1. During the period, the Bank has changed the classification of financial assets - Federal Government securities (GoP ijarah sukuks) amounting to Rs 242.6 billion from amortised cost to fair value through other comprehensive income due to reassessment of business model of the Bank. The reclassification has been made with effect from January 01, 2025. The revaluation gain of Rs 1.1 billion - gross of tax due to reclassification has been recorded in statement of other comprehensive income.

           These sukuks were originally classified at amortised cost on January 01, 2024 upon adoption of IFRS 9. The above reclassification has no effect on the financial statements of the Bank except for the change mentioned above and in capital adequacy ratio which has been increased from 20.35% to 20.39% as on the date of reclassification (January 01, 2025).

        2. Details of investment in subsidiaries

           and associates

           Percentage

           September 30, 2025

           Profit

           Total

           Market

           Subsidiaries (unlisted)

           of holding

           
           
           

           %

           Assets Liabilities Revenue

           after taxation

           comprehensive income

           value / net asset share

           Al Meezan Investment Management Limited Meezan Exchange Company (Private) Limited

           Associates (open ended - listed)

           Meezan Balanced Fund Al Meezan Mutual Fund Meezan Islamic Fund Meezan Sovereign Fund* Meezan Gold Fund

           KSE Meezan Index Fund Meezan Cash Fund*

           Meezan Islamic Income Fund

           65.00%

           100.00%

           11.43%

           5.00%

           3.25%

           -4.49%

           6.41%

           4,703,096	117,071	879,207	757,372	757,372	524,374
           24,474,470	869,306	5,756,480	5,336,488	5,336,488	1,181,200
           65,676,434	1,720,265	17,005,542	15,585,378	15,585,378	2,080,559
           21,813,223	359,819	4,558,213	3,345,037	3,345,037	521
           6,279,883	36,729	1,543,968	1,451,014	1,451,014	280,571
           6,234,443	116,466	1,715,744	1,642,973	1,642,973	392,234
           232,116,673	1,627,637	16,520,595	14,521,843	14,521,843	5,040
           18,855,050	169,600	2,105,279	1,653,964	1,653,964	5,124

           -0.03%

           10,936,721

           1,064,951

           3,037,080

           29,368

           7,765,892

           124,145

           3,399,454

           4,983

           3,399,454

           4,983

           5,134,767

           1,035,583

           * Nil percentage due to round off

           380,153,272 5,016,893 50,085,028 44,294,069 44,294,068 4,469,623

           23

           NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENT S (UNA UDITED )

           FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025

           Percentage of holding

           December 31, 2024

           Assets Liabilities Revenue

           Profit after

           Total comprehensive

           Market value / net

           Subsidiaries (unlisted)

           Al Meezan Investment Management Limited Meezan Exchange Company (Private) Limited

           Associates (open ended - listed)

           %

           65.00%

           100.00%

           8,130,073

           1,057,295

           2,662,520

           23,447

           7,137,629

           150,306

           taxation

           
           
           

           2,943,580

           33,848

           income

           2,943,580

           33,848

           asset share

           3,550,660

           1,033,848

           Meezan Balanced Fund	13.40%
           Al Meezan Mutual Fund	8.42%
           Meezan Islamic Fund	3.55%
           Meezan Sovereign Fund*	-
           Meezan Gold Fund	7.49%
           KSE Meezan Index Fund	4.49%
           Meezan Cash Fund	0.01%
           Meezan Islamic Income Fund	0.01%

           3,606,799	257,557	1,060,056	954,492	954,492	448,919
           10,430,810	235,289	4,113,019	3,883,772	3,883,772	858,463
           44,842,591	1,115,789	17,625,926	16,655,792	16,655,792	1,550,276
           272,303,981	2,755,188	23,900,940	22,176,692	22,176,692	572
           2,787,923	20,177	478,263	430,402	430,402	207,304
           6,804,275	115,925	2,249,888	2,166,786	2,166,786	300,253
           90,343,436	423,819	12,858,463	11,994,400	11,994,400	5,429
           46,775,350	516,945	4,850,189	4,453,056	4,453,056	2,793

           477,895,165 5,440,690 67,136,744 62,715,392 62,715,392 3,374,009

           Subsidiaries and associates are incorporated / registered in Pakistan. The shares in subsidiaries are placed in custody account with Central Depository Company of Pakistan Limited and cannot be sold without the prior approval of the SECP in accordance with the SECP's circular No. 9 of 2006 dated June 15, 2006.

           * Nil percentage due to round off

        3. Investments given as collateral

        September 30, 2025 (Unaudited) December 31, 2024 (Audited)

        Cost / amortised cost

        Market value

        Cost / amortised cost

        Market value

        
        
        

        Federal Government securities

        - GoP Ijarah sukuks

        260,000,000 263,620,000 485,500,000 503,414,750

        9.2 Particulars of credit loss allowance / provision for diminution in value of investments

        September 30,

        2025

        (Unaudited)

        December 31,

        2024

        (Audited)

        	Note
        Opening balance		344,866		2,632,709
        Impact of adoption of IFRS 9 - reversal of provision held against shares		-		(2,562,068)
        Impact of adoption of IFRS 9 - credit loss allowance		-		52,035
        		-		(2,510,033)
        (Reversal) / charge
        ECL charge for the period / year		535		239,996
        ECL reversal for the period / year (including cash recovery)		(6,620)		(17,806)
        		(6,085)		222,190
        Closing balance	9.3	338,781		344,866

        24

        NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENT S (UNA UDITED )

        FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025

        9.3

        Particulars of credit loss allowance /

        Septemeber 30, 2025 (Unaudited) December 31, 2024 (Audited)

        provision against debt securities

        Domestic

        Performing - Stage 1

        Under performing - Stage 2

        Non-performing - Stage 3 Substandard

        Doubtful Loss

        Investment -Cost / amortised cost

        9,609,538

        -

        -

        -334,170

334,170

9,943,708

Credit loss allowance

4,611

-

334,170

338,781

Investment -Cost / amortised cost

5,604,416

-

339,650

5,944,066

Credit loss allowance

5,216

-

339,650

344,866

9.4

The debt securities amounting to Rs 2,334,072 million (December 31, 2024: Rs 1,679,746 million) and Rs 124,083 million (December 31, 2024: Rs 125,038 million) pertains to Government securities and Government guaranteed exposure respectively. The exposure is exempted for the calculation of ECL by the SBP.

9.5 The market value of securities classified as amortised cost as at September 30, 2025 amounted to Rs 254,498 million (December 31, 2024: Rs 364,085 million).

1. ISLAMIC FINANCING AND RELATED ASSETS

In Pakistan:

September 30,

2025

(Unaudited)

December 31,

2024

(Audited)

NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENT S (UNA UDITED )

FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025

Tijarah financing and related assets

• Tijarah financing

• Tijarah inventory

• Financing under Islamic Export Refinance - Tijarah

• Inventory under Islamic SME Asaan Finance - Tijarah

• Inventory under Islamic Export Refinance - Tijarah

  Musawammah financing and related assets

• Musawammah financing

• Financing under Islamic Export Refinance - Musawammah

• Financing under SBP's Islamic Financing Facility for Renewable Energy (IFRE) - Musawammah

• Financing against Islamic SME Asaan Finance - Musawammah

• Advances against Musawammah

• Musawammah Inventory

• Advance against Islamic SME Asaan Finance - Musawammah

• Advances under Islamic Export Refinance - Musawammah

• Inventory under Islamic Export Refinance - Musawammah

  Salam Financing and related assets

• Salam Financing

• Advances against Salam

• Salam Inventory

  Financing against bills

• Financing against bills - Salam

• Advance against bills - Salam

  
  
  

  Ijarah financing and related assets

• Net investment in Ijarah

• Net book value of assets / investment in Ijarah under IFAS 2

• Advances against Ijarah

  Diminishing Musharakah financing and related assets

• Diminishing Musharakah financing

• Diminishing Musharakah financing - housing

• Diminishing Musharakah financing - SBP's Islamic Financing Facility for Storage of Agricultural Produce (IFFSAP)

• Diminishing Musharakah financing - SBP's Islamic Financing Facility for Renewable Energy (IFRE)

• Diminishing Musharakah financing - SBP's Islamic Refinance Facility for Combating COVID - 19 (IRFCC)

• Diminishing Musharakah financing - SBP's Islamic SME Asaan Finance (I-SAAF) Scheme

• Diminishing Musharakah financing - SBP's Islamic Long Term Financing Facility (ILTFF) for Plant & Machinery

• Diminishing Musharakah financing - SBP's Islamic Temporary Economic Refinance Facility (ITERF)

• Diminishing Musharakah financing - under SBP's Islamic Refinance Facility for Modernisation of SMEs (IRFMS)

• Diminishing Musharakah financing - SBP's Islamic Refinance and Credit Guarantee Scheme for Women Entrepreneurs (IRCGSWE)

• Advances against Diminishing Musharakah

• Advances against Diminishing Musharakah under SBP's IFFSAP

• Advances against Diminishing Musharakah under SBP's IFRE

• Advances against Diminishing Musharakah under SBP's IRFCC

• Advances against Diminishing Musharakah under SBP's ISAAF

• Advances against Diminishing Musharakah under SBP's ITERF

• Advances against Diminishing Musharakah under SBP's IRFMS

• Advances against Diminishing Musharakah under SBP's IRCGSWE

• Advances against Diminishing Musharakah under SBP's ILTFF

26

10.2

10.3

10.4

September 30,

2025 (Unaudited)

16,433,486

59,846,455

20,217,647

438,572

10,497,666

85,023,112

16,659,823

101,682,935

352,939,670

December 31,

2024 (Audited)

21,564,195

51,458,943

29,706,248

1,198,453

43,662,372

61,673,613

7,857,788

69,531,401

348,214,959

NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENT S (UNA UDITED )

FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025

September 30,

2025 (Unaudited)

December 31,

2024 (Audited)

Murabaha receivable - gross Less: Deferred murabaha income

Profit receivable shown in other assets Murabaha financing

Murabaha Sale Price Murabaha Purchase Price

10.1.1

10.1.3

10.1.2

8,541,252

(194,416)

(210,309)

8,136,527

8,541,252

(8,136,527)

404,725

8,091,467

(145,025)

(271,679)

7,674,763

8,091,467

(7,674,763)

416,704

The movement in Murabaha financing during the period / year is as follows: Opening balance

Sales during the period / year Adjusted during the period / year Closing balance

Deferred murabaha income Opening balance

Arising during the period / year Recognised during the period / year Closing balance

Musawammah financing - gross Less: Deferred income

Profit receivable shown in other assets

7,674,763

35,133,034

(34,671,270)

8,136,527

145,025

2,292,843

(2,243,452)

194,416

19,829,069

(455,100)

(306,188)

7,177,526

53,863,021

(53,365,784)

7,674,763

248,064

3,416,239

(3,519,278)

145,025

26,413,197

(627,968)

(883,479)

Less: Deferred income

Profit receivable shown in other assets Bai Muajjal financing

(433,029)

(329,697)

10,497,666

(1,103,526)

(626,818)

43,662,372

28