Contents

Corporate Information 2

Unconsolidated Financial Statements

Directors' Review 4

Condensed Interim Unconsolidated Statement of Financial Position 15

Condensed Interim Unconsolidated Profit and Loss Account 16

Condensed Interim Unconsolidated Statement of Comprehensive Income 17

Condensed Interim Unconsolidated Statement of Changes in Equity 18

Condensed Interim Unconsolidated Cash Flow Statement 19

Notes to the Condensed Interim Unconsolidated Financial Statements 20

Consolidated Financial Statements

Directors' Review 51

Condensed Interim Consolidated Statement of Financial Position 58

Condensed Interim Consolidated Profit and Loss Account 59

Condensed Interim Consolidated Statement of Comprehensive Income 60

Condensed Interim Consolidated Statement of Changes in Equity 61

Condensed Interim Consolidated Cash Flow Statement 62

Notes to the Condensed Interim Consolidated Financial Statements 63

March 31, 2024 First Quarter 1

Corporate Information

Board of Directors

Mian Muhammad Younis Chairman/Non-Executive Director

Mr. Ahmed Abdulrahim Mohamed Abdulla Bucheery Vice Chairman/Non-Executive Director
Mr. Yousaf Hussain President & CEO
Mr. Imtiaz Ahmad Pervez Non-Executive Director
Mr. Ali Munir Independent Director
Mr. Juma Hasan Ali Abul Non-Executive Director
Mr. Abdulelah Ebrahim Mohamed AlQasimi Non-Executive Director
Mr. Abdulla Abdulaziz Ali Taleb Non-Executive Director
Ms. Fatima Asad Khan Independent Director
Mr. Mohsin Tariq Independent Director
Ms. Sadia Khan Independent Director

Board Audit & Corporate Governance Committee

Mr. Ali Munir Chairman

Mr. Ahmed Abdulrahim Mohamed Abdulla Bucheery Member
Mr. Juma Hasan Ali Abul Member
Mr. Mohsin Tariq Member

Board Risk Management Committee

Mr. Imtiaz Ahmad Pervez Chairman

Mr. Abdulelah Ebrahim Mohamed AlQasimi Member
Mr. Abdulla Abdulaziz Ali Taleb Member
Mr. Ali Munir Member
Mr. Yousaf Hussain Member

Recruitment Nomination and Remuneration Committee

Mr. Ahmed Abdulrahim Mohamed Abdulla Bucheery Chairman

Mr. Juma Hasan Ali Abul Member
Mr. Mohsin Tariq Member
Ms. Fatima Asad Khan Member
Ms. Sadia Khan Member

Board Strategy Committee

Mian Muhammad Younis Chairman

Mr. Ahmed Abdulrahim Mohamed Abdulla Bucheery Member
Mr. Juma Hasan Ali Abul Member
Mr. Imtiaz Ahmad Pervez Member
Ms. Fatima Asad Khan Member
Mr. Yousaf Hussain Member

2 First Quarter March 31, 2024

Corporate Information

Board IT Committee

Ms. Sadia Khan Chairperson

Mr. Abdulelah Ebrahim Mohamed AlQasimi Member
Mr. Abdulla Abdulaziz Ali Taleb Member
Mr. Yousaf Hussain Member

Shariah Board

Mufti Muhammad Mohib-ul-Haq Siddiqui Chairman Shariah Board

Dr. Mufti Khalil Ahmad Aazami Shariah Board Member
Mufti Muhammad Najeeb Khan Shariah Board Member
Mufti Abdul Basit Shariah Board Member
Dr. Mufti Hassan Ashraf Usmani Shariah Board Member
Mufti Muhammad Abdullah Resident Shariah Board Member

Syed Majid Ali Chief Financial Officer

Mr. Aurangzeb Amin Company Secretary & Head of Legal

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

M/s. Mohsin Tayebaly & Co, Advocate Legal Advisors

Registered Office Share Registrar

Faysal Bank Limited CDC Share Registrar Services Limited
Faysal House, St-02, Commercial Lane, CDC House, 99-B, Block-B,
Main Shahrah-e-Faisal, SMCHS, Main Shahrah-e-Faisal,
Karachi, Pakistan Karachi-74400
UAN : (92-21) 111-747-747 Tel : (92-21) 111-111-500
Tel : (92-21) 3279-5200 Fax : (92-21) 34326053
Fax : (92-21) 3279-5226 Email : [email protected]
Website : www.faysalbank.com

Note: The State Bank of Pakistan has accorded the Fit & Proper approval to the above-mentioned
Members of the Board of Directors and accordingly, the said Directors have assumed their
responsibilities as the directors.

March 31, 2024 First Quarter 3

Directors’ Review
Unconsolidated Financial Statements

On behalf of the Board of Directors, we are pleased to present the Directors’ Review along with
unaudited condensed interim financial statements of Faysal Bank Limited (“FBL” or “the Bank”)
for the quarter ended March 31, 2024.

Company Profile

FBL was incorporated in Pakistan on October 3, 1994, as a public limited company and its
shares are listed on Pakistan Stock Exchange. FBL offers a wide range of Islamic banking
services to all customer segments, i.e., Retail, Small & Medium Sized Enterprises, Commercial,
Agri-based, and Corporate.

The bank surrendered its conventional banking license on 31 December 2022 and effective 01
January 2023 started operations under an Islamic Banking License issued by the State Bank of
Pakistan. Its footprint spreads over 280 cities across the country with 722 branches offering
only sharia-compliant banking services.

Holding Company

Ithmaar Bank B.S.C. (closed), a banking entity regulated by the Central Bank of Bahrain, is the
parent company holding directly and indirectly 66.78% (2023: 66.78%) of the Bank’s shares.
Ithmaar Bank B.S.C. (closed) is a wholly owned subsidiary of Ithmaar Holdings B.S.C. Dar Al-
Maal Al-Islami Trust (DMIT) is the holding entity of Ithmaar Holding B.S.C. and the ultimate
parent Company of the Bank. DMIT was formed by an indenture under the laws of the
Commonwealth of The Bahamas for the purpose of conducting business affairs in conformity
with Islamic law, principles, and traditions.

Economic Update

As we navigate through the fiscal year 2024, the 3QFY24 has shown a resilient economic
recovery marked by positive developments in economic and financial conditions. Despite a
tough fiscal year, each passing month has shown signs of improving overall economic
confidence.

The Consumer Price Index (CPI) for March clocked in at 20.68%, finally entering the positive
real interest rate territory both currently and on forward-looking basis. Despite the impact of
increased global oil prices leading to a rise in domestic fuel prices and frequent adjustments in
gas and power tariffs in line with IMF directives, inflation remains subdued. This reduction in
inflation is partly attributable to the high base effect from the previous year.

The State Bank of Pakistan (SBP) opted to maintain the policy rate at 22% during its latest
Monetary Policy Committee (MPC) meeting on March 18, 2024, adopting a cautious stance in
response to uncertainty regarding the inflation outlook.

Government’s fiscal performance has managed to surpass targets with a 33% year-on-year
increase in its tax collection up to Rs. 879 billion in March 2024. In the 9 months of FY24, FBR
has managed to collect PKR 6.7 trillion, a 30% increase compared to the previous year.
However, the fiscal deficit during Jul-Jan FY2024, increased to 2.6% of GDP, up from 2.3%
recorded last year. The government remains committed to prudent fiscal management by

4 First Quarter March 31, 2024

curbing expenditure. It is pertinent to note that the primary surplus improved to Rs. 1,812 billion
(1.7% of GDP) during Jul-Dec FY2024.

The stock market has demonstrated remarkable performance, with sustained growth in the
index during the past five months. In March 2024, the Pakistan Stock Market (KSE100) reached
an all-time high of 67,307.63. Looking ahead, the investor sentiments maybe influenced by
upcoming events such as the announcement of new IMF program, forthcoming corporate
results, and the upcoming Monetary Policy on April 29, 2024.

Externally, the Current Account recorded a deficit of $1.0 billion for Jul-Feb FY2024, a
significant improvement from the $3.9 billion deficit reported last year, reflecting a positive shift
in the trade balance. In February 2024, the current account posted a surplus of $128 million
compared to a deficit of $50 million during the same period last year. Exports increased by
16.2% year-on-year to $2.6 billion in February 2024 as compared to $2.2 billion in February
2023 owing to ease in imports restriction and exchange rate stability which resulted in smooth
supply of raw material making room for economic activity in export-oriented industries. The YoY
imports also increased by 10.2% to $4.3 billion in February 2024 as compared to $3.9 billion in
the same month last year.

As we approach the final quarter of the fiscal year, maintaining the momentum of policy reforms
undertaken by the government is crucial for sustaining economic stability. Securing the new
IMF Extended Fund Facility (EFF) is essential to meet the increasing financing needs of the
economy and ensuring a stable trajectory forward.

Bank’s Performance

In 2023, the Board approved the establishment of Faysal Islami Currency Exchange Company
(Private) Limited, a wholly owned subsidiary of FBL. The bank injected initial paid-up capital of
PKR 1 billion during the year. The company received its “Certificate of Incorporation” from
SECP on January 16, 2024 and obtained an operational license from SBP on March 26, 2024.

Furthermore, the Bank adopted International Financial Reporting Standard (IFRS) 9 “Financial
Instruments” effective from January 1, 2024, the impact is given in note 4.1 of financial
statements.

A detailed review of the Bank’s performance is given in the following paragraphs:

Financial Performance
Rs. in million
Key Balance Sheet Numbers March ‘24 December ‘23 Growth %
Investment 646,604 589,545 9.7
Financing 576,313 580,711 (0.8)
Total Assets 1,474,484 1,370,074 7.6
Deposits 1,049,641 1,018,276 3.1

March 31, 2024 First Quarter 5

 Rs. in million
Profit & Loss Account March ‘24 March ‘23 Growth %
Total Revenue 23,349 15,556 50.1
Operating and other Expenses 10,839 7,954 36.3
Profit before tax and provisions 12,510 7,602 64.6
Net provisions 32 1,364 (97.7)
Profit before tax 12,478 6,238 100.0
Tax 5,965 3,027 97.1
Profit after tax 6,513 3,211 102.8

Earnings per share (Rupees) 4.29 2.12 102.8

In Q1‘24, FBL continued its trajectory of success and has achieved remarkable financial
performance and recorded unprecedented growth despite challenges posed by the prevailing
economic conditions. On a standalone basis, Profit Before Tax (PBT) increased by 100.0% to
PKR 12.5 billion. FBL has achieved a Profit After Tax (PAT) of PKR 6.5 billion, double than PKR
3.2 billion in the corresponding quarter last year, with Earnings Per Share increasing from PKR
2.12 to PKR 4.29.

The Bank with continuing its growth trajectory, has increased total revenue by 50.1% over
Q1’23 to PKR 23.3 billion. This growth was driven by balance sheet expansion (Q1’24 vs Q1’23)
and an uptick in spreads, resulting in a 43.3% YoY increase in net spread earned taking it to
PKR 18.7 billion in Q1’24. Healthy growth in current deposits of PKR 55 billion (18.1%) YoY and
increase in the average benchmark rate helped improve the overall spreads. Non-fund income
grew by 85.4% over the corresponding quarter last year and is at PKR 4.7 billion in Q1’24. Fee
income also experienced uptick of 32.9%, reaching PKR 2.6 billion, with significant
contributions from trade and remittance business solidifying the Bank’s foothold in these key
businesses. Compared with the corresponding quarter of last year trade volumes registered an
exponential 155% increased while remittance volumes increased by 67%.

Due to double digit inflation, a volatile PKR relative to the USD, and an expanding branch
network, the bank's total expenses have risen by 36.3% over Q1'23. However, the cost to
income ratio has improved from 51.1% in Q1’23 to 46.42% in Q1’24. The net provision for Q1’24
was PKR 32 million, compared to a charge of PKR 1.4 billion in Q1’23. The NPL ratio is at 3.8%
with total coverage at 114.3%.

FBL’s total assets continued to grow, reaching PKR 1.5 trillion, driven by strong deposit
mobilization and increase due to borrowings from financial institutions. The upward trend in
Current Accounts seen over past few years continued taking them to PKR 360 billion i.e., 10.3%
growth over December 2023. Total deposits also increased by 3.1% over December 2023 and
is at PKR 1 trillion. The deposits market share is maintained at 3.7% in March 2024. Current
Account (CA) mix improved to 34.3% from 32.1% in December 2023 and CASA mix improved
to 78.4% from 75.0% in December 2023.

6 First Quarter March 31, 2024

FBL’s net financing marginally reduced due to the impact of IFRS9 implementation and stands
at PKR 576 billion. However, gross financing increased by PKR 2 billion. Advance Deposit Ratio
(ADR) slightly reduced from 57.0% in December 2023 to 54.9% in March 2024. The liquidity
generated was placed in investments. Investments increased by 9.7% and reached PKR 647
billion.

The Bank remained committed in achieving the given targets and creating sustainable value for
stakeholders. With a strong foundation and a strategic focus on growth, we are confident in our
ability to In Sha Allah, scale new heights in future.

Outlook

Looking forward, FBL is well-positioned with a good momentum envisaged in 2024. While we
remain optimistic, we also recognize the potential impact of prevailing economic conditions and
persistent inflation on both our operations and our customers. As part of our strategic vision,
the Bank is committed to expanding its branch network to stimulate deposit growth. We are
actively pursuing initiatives to enhance our customer service experience. Moreover, we are
dedicated to staying at the forefront of technological advancements, investing in cutting-edge
digital solutions to elevate our digital offerings and enrich the overall customer experience.

In line with our commitment to excellence, we will continue to invest in our workforce, fostering
an environment that upholds our core values of Faith, Integrity, Teamwork, Innovation, and Care.
By prioritizing these principles, we aim to strengthen our position in the market and better serve
the evolving needs of our customers in the years ahead.

Credit Rating

VIS Credit Rating Company Limited (VIS) and Pakistan Credit Rating Agency Limited (PACRA)
have re-affirmed the following entity ratings in 2023:

Long-Term AA
Short-Term A1+

Both the rating agencies assigned ‘Stable’ outlook to the bank.

Dividend

The Board of Directors, in their meeting held on April 25, 2024 declared an interim cash
dividend of Rs. 1 per share (10%) for the quarter ended March 31, 2024.

Heartfelt Thanks: Acknowledging Our Pillars of Strength

On behalf of the Board and Management, we extend gratitude to our esteemed shareholders
for their unwavering support. We are indebted to our customers, who continued to trust us with
their business. We would like to place on record our appreciation for the Government of
Pakistan, the State Bank of Pakistan and the Securities and Exchange Commission of Pakistan
for their continued support and guidance and for developing and strengthening the banking
and financial services sector through continuous improvement in the regulatory and
governance framework.
March 31, 2024 First Quarter 7
As always, we would also like to express sincere appreciation for the Shariah Board. We would
also like to take this opportunity to recognize and commend the unwavering commitment and
exceptional efforts extended by our employees in driving the growth of FBL. We extend our
heartfelt thanks to them for their relentless dedication and hard work.

Approval

In compliance with the requirement of the Companies Act, 2017, this Directors’ Review with the
recommendations of the Board Audit and Corporate Governance Committee has been
approved by the Directors in their meeting held on April 25, 2024 and signed by the Chief
Executive Officer and a director.

President & CEO Chairman

Karachi
Dated: April 25, 2024

8 First Quarter March 31, 2024

 ‫ڈ‬

‫‪1‬رو‬ ‫ہ‬ ‫ہا ا س ‪ 31‬رچ‪2024‬‬ ‫رڈ ‪25‬ا ‪2024‬‬

‫۔‬ ‫رش‬ ‫ڈ‬ ‫رى‬ ‫ب)‪(10%‬‬

‫دل‬ ‫ں‬

‫۔‬ ‫لا د‬ ‫ا ں‬ ‫ادا‬ ‫رز‬ ‫‪ ،‬اس‬ ‫رڈ اورا‬

‫رى ر ۔‬ ‫ا د‬ ‫ر ‪ ،‬ں ا رو راور‬ ‫دل‬ ‫ر‬ ‫ا‬
‫اُن‬ ‫وغ‬ ‫و‬ ‫اور‬ ‫ى ذر‬ ‫ورك‬ ‫ر ىاور ر‬
‫ناور ر ا ا‬ ‫آف‬ ‫ن‪ ،‬صا‬ ‫ا ر زاور‬ ‫وناورر‬
‫ار ۔‬ ‫آف ن‬

‫ں‬ ‫ز‬ ‫ا‬ ‫ر اور‬ ‫رڈ‬ ‫ح‪،‬‬

‫۔‬ ‫ا‬ ‫دل‬ ‫اور‬ ‫ں ورا ن ا‬

‫رى‬

‫ڈا ز اس‬ ‫رش‬ ‫ر‬ ‫‪ ،‬رڈ آڈٹ اور ر ر‬ ‫ں‬ ‫ا ‪2017‬‬

‫آ اورڈا‬ ‫ا‬ ‫ر اوراس‬ ‫ا ا ا س‬ ‫ر رٹ ڈا ز ‪25‬ا ‪2024‬‬
‫۔‬ ‫د‬

‫راور اىاو‬
‫ا‬
‫‪2024‬‬ ‫ر ‪25:‬ا‬

‫‪March 31, 2024‬‬ ‫‪First Quarter‬‬ ‫‪9‬‬

 ‫ط داور‬ ‫م ۔‬ ‫ار‬ ‫رز‬ ‫ا اورا‬
‫۔‬ ‫ا‬ ‫ں‬ ‫‪ ،‬ا ءا‬ ‫رو رى‬

‫۔ ا آ اورا‬ ‫ز‬ ‫ا ر ر‬ ‫‪2024‬‬ ‫‪،‬‬

‫۔ رى رو رى‬ ‫ں ور ا‬ ‫ا ات‬ ‫تاور‬ ‫دہ‬
‫ر دو ں‬
‫م ۔‬ ‫ورك‬ ‫ا‬ ‫ا‬ ‫ڈ زٹ‬ ‫ر ‪،‬‬ ‫چ ا‬
‫ى‬ ‫آں‪،‬‬ ‫۔‬ ‫را ا ت ر‬ ‫وس‬ ‫ا‬
‫ڈ‬ ‫اور‬ ‫آ ر ‪،‬ا ڈ آ ز‬
‫م ۔‬ ‫رى‬

‫وغد‬ ‫ل‬ ‫‪،‬ا ا‬ ‫رى رى ر‬ ‫‪ ،‬ا ا ادى ت‬ ‫م‬ ‫ى ا‬

‫‪ ،‬را‬ ‫د‬ ‫ا رر ۔انا ں‬ ‫رى دى ا ا ر‬ ‫‪،‬د ‪ ،‬ورك‪ ،‬تاور آ‬
‫را‬ ‫ور ت‬ ‫ر‬ ‫ں ا‬ ‫ط اورآ وا‬ ‫ا ز‬ ‫ر‬
‫۔‬

‫‪:‬‬ ‫ٹر‬

‫)‪(PACRA‬‬ ‫ا‬ ‫ٹر‬ ‫ن‬ ‫)‪(VIS‬اور‬ ‫‪ VIS‬ٹر‬

‫‪:‬‬ ‫ں دو رہ‬ ‫درج ذ در‬

‫‪AA‬‬ ‫ا‬

‫‪A1+‬‬ ‫ا‬

‫۔‬ ‫‘آؤٹ د‬ ‫ں ’‬ ‫در‬ ‫ں‬ ‫ا‬ ‫دو ںر‬

‫‪10‬‬ ‫‪First Quarter‬‬ ‫‪March 31, 2024‬‬

 ‫ت در‬ ‫ر ر رى ر اور دہ‬ ‫ل‪ FBL ، Q1 2024‬ا‬
‫)‪(PAT‬‬ ‫از‬ ‫‪ 6.5‬رو‬ ‫ل د ۔‬ ‫اور‬ ‫ر د‬ ‫و د ں‬
‫‪4.29‬‬ ‫آ ‪ 2.12‬رو‬ ‫‪،‬‬ ‫دو‬ ‫‪ 3.2‬رو‬ ‫ل ا‬ ‫‪،‬‬
‫۔‬ ‫ھ‬ ‫رو‬

‫‪ 50.1%‬ا‬ ‫آ‬ ‫‪2023،‬‬ ‫ر ر رى ر‬ ‫ا‬

‫‪ (Q1'23‬اورا ز ا‬ ‫) ‪Q1'24‬‬ ‫۔‬ ‫‪ 23.3‬رو‬
‫ھ ۔‬ ‫ا ‪18.7 Q1'24‬‬ ‫‪ 43.3‬ا‬ ‫ا‬ ‫‪،‬‬
‫و‬ ‫رك ح ا‬ ‫‪ (18.1% ) 55‬ل ا ر اوراو‬ ‫ز د‬ ‫ڈز‬
‫ااور‬ ‫‪ 85.4%‬ا‬ ‫ل ا‬ ‫د ۔ن آ‬ ‫ا‬
‫ا‪ 2.6 ،‬رو‬ ‫‪ 32.9%‬ا‬ ‫آ‬ ‫‪ 4.7 Q1'24‬رو ر ۔‬
‫ل‬ ‫۔‬ ‫ط‬ ‫انا‬ ‫ں‬ ‫رو ر‬ ‫‪ ،‬اورر‬
‫ا۔‬ ‫‪ 67%‬ا‬ ‫ا ر‬ ‫‪ 155%‬ا‬ ‫ر‬ ‫ا‬

‫‪Q1'23 ،‬‬ ‫ورك و‬ ‫رو ‪،‬اور ا‬ ‫‪،‬ڈا‬ ‫ڈ ڈ‬

‫‪Q1'23‬‬ ‫آ‬ ‫ا ۔ ‪،‬‬ ‫ا ا ت ‪ 36.3%‬ا‬
‫وو ن‪32‬‬ ‫۔ ‪Q1'24‬‬ ‫‪46.42% Q1'24‬‬ ‫‪51.1%‬‬
‫اور ر ‪114.3%‬‬ ‫‪3.8%‬‬ ‫۔ ‪NPL‬‬ ‫رو ر ‪ 1.4 Q1'23 ،‬رو‬
‫۔‬

‫ر ‪،‬اور‪1.5‬‬ ‫و‬ ‫اور اداروں ا‬ ‫ا ت طڈ زٹ‬ ‫‪FBL‬‬

‫اور ‪ 360‬رو‬ ‫ى ر ند‬ ‫ں‬ ‫اؤ‬ ‫۔‬ ‫رو‬
‫د ‪2023‬‬ ‫ا۔ ڈ ز‬ ‫‪10.3%‬ا‬ ‫د ‪2023‬‬
‫اؤ‬ ‫۔‬ ‫رچ ‪3.7% 2024‬‬ ‫رو‬ ‫‪1‬‬ ‫‪ 3.1%‬ا‬
‫اور ‪ CASA‬د ‪2023‬‬ ‫‪34.3%‬‬ ‫)‪ (CA‬د ‪32.1% 2023‬‬
‫۔‬ ‫‪78.4%‬‬ ‫‪75.0%‬‬

‫ود‬ ‫اور‪ 576‬رو‬ ‫وا‬ ‫‪FBL‬‬ ‫‪ IFRS9‬ذ‬

‫ڑا‬ ‫ا۔ ‪ADR‬د ‪57.0% 2023‬‬ ‫‪ 2‬رو ا‬ ‫ر ۔ ‪،‬‬
‫رى ‪9.7‬‬ ‫۔‬ ‫رى‬ ‫وا‬ ‫۔‬ ‫رچ ‪54.9% 2024‬‬
‫۔‬ ‫ھ اور‪ 647‬رو‬

‫‪March 31, 2024‬‬ ‫‪First Quarter‬‬ ‫‪11‬‬

 ‫ر د‬
‫‪FBL‬‬ ‫رى دى‪،‬‬ ‫م‬ ‫(‬ ‫) ا‬ ‫ا‬ ‫ا‬ ‫‪ ،‬رڈ‬ ‫‪2023‬‬
‫‪ 16‬رى‬ ‫ل دورا ن‪ 1‬رو ا ا ادا ہ ) اپ ( ۔‬ ‫۔‬ ‫ذ ادارہ‬
‫آف‬ ‫اور‪ 26‬رچ ‪ 2024‬ا‬ ‫آف ر ر ‘‘‬ ‫‪ SECP‬ا ’’‬ ‫‪2024‬‬
‫۔‬ ‫آ‬ ‫ن‬

‫‘‘ ا ‪،‬اس ا‬ ‫و‬ ‫ا‬ ‫‪”IFRS 9‬‬ ‫رى ‪2024‬‬ ‫آں‪،‬‬

‫۔‬ ‫ٹ‪4.1‬‬ ‫اروں‬

‫ں رج ‪:‬‬ ‫ہ ر ذ‬ ‫ر د‬

‫‪%‬‬ ‫د ‪٢٠٢٣‬ء‬ ‫رچ‪٢٠٢٤‬ء‬

‫‪9.7‬‬ ‫‪589,545‬‬ ‫‪646,604‬‬

‫)‪(0.8‬‬ ‫‪580,711‬‬ ‫‪576,313‬‬

‫‪7.6‬‬ ‫‪1,370,074‬‬ ‫‪1,474,484‬‬ ‫ت‬ ‫ا‬

‫‪3.1‬‬ ‫‪1,018,276‬‬ ‫‪1,049,641‬‬

‫‪%‬‬ ‫رچ ‪٢٠٢٣‬ء‬ ‫رچ‪٢٠٢٤‬ء‬ ‫اؤ‬

‫‪50.1‬‬ ‫‪15,556‬‬ ‫‪23,349‬‬

‫‪36.3‬‬ ‫‪7,954‬‬ ‫‪10,839‬‬ ‫اورد ا ا ت‬ ‫آ‬

‫‪64.6‬‬ ‫‪7,602‬‬ ‫‪12,510‬‬

‫)‪(97.7‬‬ ‫‪1,364‬‬ ‫‪32‬‬ ‫وو ن‬

‫‪100‬‬ ‫‪6,238‬‬ ‫‪12,478‬‬

‫‪97.1‬‬ ‫‪3,027‬‬ ‫‪5,965‬‬

‫‪102.8‬‬ ‫‪3,211‬‬ ‫‪6,513‬‬

‫‪102.8‬‬ ‫‪2.12‬‬ ‫‪4.29‬‬

‫‪12‬‬ ‫‪First Quarter‬‬ ‫‪March 31, 2024‬‬

 ‫د ز ر‬ ‫‪،‬آ ر دہ اور‬ ‫‪(CPI) 20.68%‬‬ ‫ا ا‬ ‫رچ‬
‫ں ا اور‬ ‫ں ا ات و د‬ ‫۔‬ ‫ر‬ ‫ا‬
‫۔‬ ‫ا ات‬ ‫و د‪،‬‬ ‫ں ر را‬ ‫اور‬ ‫‪ IMF‬ا ت‬
‫ب ۔‬ ‫ا‬ ‫ل‬ ‫وى ر‬

‫)‪ (MPC‬دورا ن‬ ‫ى‬ ‫زہ‬ ‫آف ن )‪ 18 (SBP‬رچ ‪ 2024‬ا‬ ‫ا‬

‫ا ۔‬ ‫ط‬ ‫اب‬ ‫ر ل‬ ‫ا رر‬ ‫‪22%‬‬ ‫ر‬

‫ت ھ رچ ‪879 2024‬‬ ‫‪ 33%‬ا‬ ‫و‬ ‫ر د‬

‫‪،‬‬ ‫۔ ‪ 9 FY24‬ں ‪6.7 FBR ،‬‬ ‫رو‬
‫رہ ھ‬ ‫رى دورا ن‬ ‫‪ 30%‬ز دہ ۔ ‪ ،‬ل‪2024‬‬ ‫ل‬
‫ط‬ ‫ا ا ت‬ ‫ل ‪ 2.3%‬ز دہ ۔‬ ‫‪،‬‬ ‫ڈى ‪2.6%‬‬
‫ھ‬ ‫دورا ن ا ى‬ ‫د‬ ‫ل‪2024‬‬ ‫ت‬ ‫م ۔ ر‬
‫‪ 1,812‬رو ) ‪ (1.7% GDP‬۔‬

‫۔ رچ‬ ‫ہ‬ ‫ار ر د‬ ‫ں دورا نا‬ ‫ا كر‬

‫‪،‬‬ ‫۔‬ ‫‪(KSE100) 67,307.63‬‬ ‫‪ ، 2024‬نا ك ر‬
‫روں‬ ‫ى‬ ‫‪ IMF‬و ا م ا ن‪،‬آ وا ر ر رز اور‪ 29‬ا ‪ 2024‬آ ہ‬
‫۔‬ ‫چ‬

‫رہ ر رڈ ‪،‬‬ ‫‪ 1.0‬ڈا‬ ‫ورى‬ ‫ل‪ 2024‬ں‬ ‫اؤ‬ ‫و ر ‪،‬‬

‫۔ ورى ‪2024‬‬ ‫‪ ،‬ر ازن‬ ‫ل ‪ 3.9‬ڈا رے‬
‫‪ 128‬ڈا‬ ‫رے‬ ‫ل ا ت دورا ن‪ 50‬ڈا‬ ‫اؤ‬ ‫‪،‬‬
‫ورى‬ ‫ھ ورى ‪ 2.6 2024‬ڈا‬ ‫۔ آ ات ل ل‪16.2‬‬
‫آ ات‬ ‫اور ح د ا م و‬ ‫ں‬ ‫‪ ،‬درآ ات‬ ‫‪ 2.2 2023‬ڈا‬
‫ى ‪ ،‬ل ا ر درآ ات ورى ‪2024‬‬ ‫ں‬ ‫ں م ل ار ا‬
‫۔‬ ‫ل ا ہ‪ 3.9‬ڈا‬ ‫ھ ‪ 4.3‬ڈا‬ ‫‪10.2‬‬

‫ا رر‬ ‫ا ت ر ر‬ ‫وع‬ ‫ف‬ ‫‪،‬‬ ‫ل آ ى‬

‫اور ر ر‬ ‫ور ت را‬ ‫ورى ۔‬ ‫ا رر‬ ‫ا م‬
‫ورى ۔‬ ‫)‪(EFF‬‬ ‫‪IMF‬‬

‫‪March 31, 2024‬‬ ‫‪First Quarter‬‬ ‫‪13‬‬

 ‫ارے‬

‫‘‘(‬ ‫)"‪’’ "FBL‬‬ ‫ہ‬ ‫‪ 31،‬رچ ‪2024‬‬ ‫رڈ آفڈا ز‬

‫۔‬ ‫ا ر ت‬ ‫اروں ہ‬ ‫آڈٹ ہ رى‬

‫و‬

‫ن‬ ‫آ اوراس‬ ‫ر‬ ‫‪ FBL‬كا م ن ‪ 3‬ا ‪ 1994‬ا‬

‫رو رى ادارے‪،‬‬ ‫در‬ ‫اور‬ ‫‪،‬‬ ‫ر‬ ‫م ت‬ ‫رج ۔ ‪ FBL‬ر‬ ‫ا كا‬
‫۔‬ ‫ت ا و ر‬ ‫‪،‬ا ى اور ر ر‬

‫ن‬ ‫آف‬ ‫ا‬ ‫رى ‪2023‬‬ ‫ر اور‬ ‫‪ 31‬د ‪2022‬‬ ‫ا‬

‫‪ 280‬وں ‪722‬‬ ‫م وع ۔‬ ‫رى دہ ا‬
‫۔‬ ‫رى ت ا ر‬ ‫ا ں‬

‫ى‬ ‫‪،‬‬ ‫ذر ر‬ ‫ى آف‬ ‫ادارہ‬ ‫) زڈ(‪،‬ا‬ ‫ا‬ ‫ا ر‬

‫۔ا ر‬ ‫وا ‪(2023:66.78%) 66.78%‬‬ ‫ا‬ ‫‪،‬‬
‫)ڈى ا آ (ا ر‬ ‫ذ ادارہ اوردا را لا‬ ‫ا‬ ‫) زڈ(ا ر‬ ‫ا‬
‫ے ذر دو‬ ‫۔ڈى ا آ‬ ‫اور دى ر‬ ‫ا‬
‫رو رى اُ ر ا مد‬ ‫ن‪،‬ا ںاورروا‬ ‫ا‬ ‫س ا‬
‫۔‬ ‫د‬

‫دى ر ل‬ ‫ا‬ ‫زہ‬

‫ت‬ ‫اور‬ ‫ى‬ ‫‪3QFY24،‬‬ ‫ف ھر‬ ‫ل‪2024‬‬

‫دى‬ ‫ا‬ ‫و د‪ ،‬ر‬ ‫ل‬ ‫۔ا‬ ‫ہ‬ ‫ار‬ ‫ا‬ ‫و‬ ‫ر‬
‫۔‬ ‫ا د‬

‫‪14‬‬ ‫‪First Quarter‬‬ ‫‪March 31, 2024‬‬

Condensed Interim Unconsolidated Statement of Financial Position
As at March 31, 2024

Un-audited Audited
Note March 31, December 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
ASSETS

Cash and balances with treasury banks 9 94,746,190 84,036,558

Balances with other banks 10 3,394,625 1,812,399
Due from financial institutions 11 10,999,999 -
Investments 12 646,603,882 589,544,591
Islamic financing and related assets 13 576,313,299 580,711,316
Property and equipment 14 32,496,784 29,555,304
Right-of-use assets 15 10,500,360 10,713,046
Intangible assets 16 2,379,407 2,331,775
Deferred tax assets - -
Other assets 17 97,049,244 71,368,561
1,474,483,790 1,370,073,550

LIABILITIES

Bills payable 18 12,374,874 16,550,469

Due to financial institutions 19 245,132,701 166,886,803
Deposits and other accounts 20 1,049,640,530 1,018,275,737
Lease liabilities 21 12,825,722 12,868,103
Subordinated sukuk - -
Deferred tax liabilities 22 639,799 4,907,208
Other liabilities 23 63,674,616 60,386,869
1,384,288,242 1,279,875,189
NET ASSETS 90,195,548 90,198,361

REPRESENTED BY

Share capital 15,176,965 15,176,965

Reserves 16,257,001 15,616,188
Surplus on revaluation of assets - net 24 13,464,649 15,151,071
Unappropriated profit 45,296,933 44,254,137
90,195,548 90,198,361

CONTINGENCIES AND COMMITMENTS 25

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

PRESIDENT & CEO CHIEF FINANCIAL OFFICER CHAIRMAN DIRECTOR DIRECTOR

March 31, 2024 First Quarter 15

Condensed Interim Unconsolidated Profit and Loss Account (Un-audited)
For the quarter ended March 31, 2024

Quarter ended
Note March 31, March 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
Profit / return earned 27 59,453,346 34,837,351
Profit / return expensed 28 40,768,053 21,797,317
Net profit / return 18,685,293 13,040,034

OTHER INCOME

Fee and commission income 29 2,574,520 1,937,259

Dividend income 70,572 58,784
Foreign exchange income 1,600,558 1,252,670
(Loss) / Income from derivatives (17,955) 93,098
Gain / (loss) on securities 30 335,103 (892,283)
Net gains / (loss) on derecognition of financial assets measured at amortised cost - -
Other income 31 100,657 66,575
Total other income 4,663,455 2,516,103

Total income 23,348,748 15,556,137

OTHER EXPENSES

Operating expenses 32 10,576,500 7,795,703

Workers welfare fund 258,167 157,628
Other charges 33 4,455 317
Total other expenses 10,839,122 7,953,648

Profit before credit loss allowance 12,509,626 7,602,489

Credit loss allowance and write offs - net 34 32,108 1,364,901
Extra ordinary / unusual items - -
PROFIT BEFORE TAXATION 12,477,518 6,237,588

Taxation 35 5,964,677 3,026,436

PROFIT AFTER TAXATION 6,512,841 3,211,152

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

Basic / diluted earnings per share 36 4.29 2.12

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

PRESIDENT & CEO CHIEF FINANCIAL OFFICER CHAIRMAN DIRECTOR DIRECTOR

16 First Quarter March 31, 2024

Condensed Interim Unconsolidated Statement of Comprehensive Income (Un-audited)
For the quarter ended March 31, 2024

Quarter ended
March 31, March 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------

Profit after taxation for the period 6,512,841 3,211,152

Other comprehensive income / (loss)

Items that may be reclassified to the profit and loss account in

subsequent periods:

- Movement in surplus / (deficit) on revaluation of debt investments

through FVOCI - net of tax (712,720) -

- Movement in (deficit) / surplus on revaluation of investments - net of tax - (1,412,997)

(712,720) (1,412,997)
Items that will not be reclassified to the profit and loss account in
subsequent periods:

- Movement in surplus / (deficit) on revaluation of equity investments - net of tax 225,247 -

Total comprehensive income 6,025,368 1,798,155

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

PRESIDENT & CEO CHIEF FINANCIAL OFFICER CHAIRMAN DIRECTOR DIRECTOR

March 31, 2024 First Quarter 17

Condensed Interim Unconsolidated Statement of Changes In Equity
For the quarter ended March 31, 2024

Reserves Surplus / (deficit)

Capital reserves on revaluation of
Non-distri- Property
Reserve Unappro-
Share butable capital and
arising Statutory priated Total
capital Share reserve Total equipment /
on reserve Investments Total profit
premium (NCR) - gain on non-
amal-
bargain banking
gamation
purchase assets
------------------------------------------------------------------------------------------------------- Ru pees '000 -------------------------------------------------------------------------------------------------------
Balance as at January 1, 2023 (Audited) 15,176,965 10,131 257,269 23,952 11,384,616 11,675,968 (1,845,612) 12,494,426 10,648,814 32,581,664 70,083,411
Profit after taxation for the quarter ended March 31, 2023 - - - - - - - - - 3,211,152 3,211,152
Other comprehensive income - net of tax
Movement in (deficit) / surplus on revaluation of
investments - net of tax - - - - - - (1,412,997) - (1,412,997) - (1,412,997)
Total other comprehensive income - net of tax - - - - - - (1,412,997) - (1,412,997) - (1,412,997)
Transfer to statutory reserve - - - - 642,231 642,231 - - - (642,231) -
Transfer from surplus on revaluation of property and
equipment to unappropriated profit - net of tax - - - - - - - (40,127) (40,127) 40,127 -
Amortisation of intangible assets - customer
relationship - net of tax - - (11,704) - - (11,704) - - - - (11,704)
Transaction with owners, recorded directly in equity
Final cash dividend declared on February 23, 2023
at Re 1 per share - - - - - - - - - (1,517,697) (1,517,697)
Balance as at March 31, 2023 (Un-audited) 15,176,965 10,131 245,565 23,952 12,026,847 12,306,495 (3,258,609) 12,454,299 9,195,690 33,673,015 70,352,165
Profit after taxation for the period from
April 1, 2023 to December 31, 2023 - - - - - - - - - 16,834,787 16,834,787
Other comprehensive income - net of tax
Movement in (deficit) / surplus on revaluation of
investments - net of tax - - - - - - 6,607,638 - 6,607,638 - 6,607,638
Remeasurement gain / (loss) on defined benefit
obligations - net of tax - - - - - - - - 45,183 45,183
Movement in surplus on revaluation of property and
equipment - net of tax - - - - - - (157,112) (157,112) - (157,112)
Movement in surplus on revaluation of non-banking
assets - net of tax - - - - - - (391,642) (391,642) - (391,642)
Total other comprehensive income - net of tax - - - - - - 6,607,638 (548,754) 6,058,884 45,183 6,104,067
Transfer to statutory reserve - - - - 3,366,957 3,366,957 - - - (3,366,957) -
Transfer from surplus on revaluation of property and
equipment to unappropriated profit - net of tax - - - - - - - (103,503) (103,503) 103,503 -
Amortisation of intangible assets - customer
relationship - net of tax - - (57,264) - - (57,264) - - - - (57,264)
Transaction with owners, recorded directly in equity
1st Interim cash dividend declared on August 24, 2023
at Rs 1 per share - - - - - - - - - (1,517,697) (1,517,697)
2nd Interim cash dividend declared on October 26, 2023
at Rs 1 per share - - - - - - - - - (1,517,697) (1,517,697)
Balance as at December 31, 2023 (Audited) 15,176,965 10,131 188,301 23,952 15,393,804 15,616,188 3,349,029 11,802,042 15,151,071 44,254,137 90,198,361
Impact of adopting IFRS 9 as at January 1, 2024 - net of tax - - - - - - (961,742) - (961,742) (2,020,573) (2,982,315)
Restated balance as at January 1 , 2024 15,176,965 10,131 188,301 23,952 15,393,804 15,616,188 2,387,287 11,802,042 14,189,329 42,233,564 87,216,046
Profit after taxation for the quarter ended March 31, 2024 - - - - - - - - - 6,512,841 6,512,841
Other comprehensive income - net of tax
Movement in surplus / (deficit) on revaluation of equity
investments through FVOCI - net of tax - - - - - - 225,247 - 225,247 - 225,247
Movement in surplus / (deficit) on revaluation of debt
investments through FVOCI - net of tax - - - - - - (712,720) - (712,720) - (712,720)
Total other comprehensive income - net of tax - - - - - - (487,473) - (487,473) - (487,473)
Gain on sale of equity instruments classified
as FVOCI - net of tax - - - - - - (201,273) - (201,273) 201,273 -
Transfer to statutory reserve - - - - 651,285 651,285 - - - (651,285) -
Transfer from surplus on revaluation of fixed
assets to unappropriated profit - net of tax - - - - - - - (35,934) (35,934) 35,934 -
Amortisation of intangible assets - customer
relationship - net of tax - - (10,472) - - (10,472) - - - - (10,472)
Transaction with owners, recorded directly in equity
Final cash dividend declared on February 7, 2024
at Rs 2 per share - - - - - - - - - (3,035,394) (3,035,394)
Balance as at March 31, 2024 (Un-audited) 15,176,965 10,131 177,829 23,952 16,045,089 16,257,001 1,698,541 11,766,108 13,464,649 45,296,933 90,195,548

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

PRESIDENT & CEO CHIEF FINANCIAL OFFICER CHAIRMAN DIRECTOR DIRECTOR

18 First Quarter March 31, 2024

Condensed Interim Unconsolidated Cash Flow Statement (Un-audited)
For the quarter ended March 31, 2024

Note March 31, March 31,

2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 12,477,518 6,237,588
Less: dividend income (70,572) (58,784)
12,406,946 6,178,804
Adjustments:
Net profit / return income (18,685,293) (13,040,034)
Depreciation on owned property and equipment 32 634,698 443,998
Depreciation on right-of-use assets 32 485,781 444,049
Amortisation of intangible assets 32 95,521 70,111
Depreciation on non-banking assets 32 786 1,686
Workers welfare fund 258,167 157,628
Credit loss allowance against due from financial institutions 34 1 -
Credit loss allowance against financing - net 34 108,906 59,480
Credit loss allowance for diminution in value of investments - net 34 (109,713) 1,382,930
Credit loss allowance against other assets - net 34 650 -
Credit loss allowance against off balance sheet obligations - net 34 101,647 650
Unrealised gain - FVTPL - net 30 (206,884) -
Gain on sale of Property and equipment - net 31 (24) (8,190)
Gain on termination of leases (IFRS 16) - net 31 (19,563) -
Charge for defined benefit plan 88,347 66,225
(Income) / loss from derivative contracts - net 17,955 (93,098)
Bad debts written off directly 34 4,503 5,328
(17,224,515) (10,509,237)
(4,817,569) (4,330,433)
(Increase) / decrease in operating assets
Due from financial institutions (10,999,999) 8,315,098
Securities classified as FVTPL (2,642,290) -
Financing 4,284,608 (34,501,617)
Others assets (excluding advance taxation) (2,006,697) (12,073,640)
(11,364,378) (38,260,159)
Increase / (decrease) in operating liabilities
Bills Payable (4,175,595) (7,553,024)
Due to financial institutions 79,089,834 40,275,668
Deposits 31,364,793 18,210,004
Other liabilities (excluding current taxation) (864,972) 6,549,743
105,414,060 57,482,391
Income tax paid (8,701,874) (3,249,448)
Net profit / return received 36,347,789 22,105,354
Net profit / return paid (37,693,536) (21,103,099)
Contribution to gratuity fund (88,347) (53,986)
Net cash generated from operating activities 79,096,145 12,590,620

CASH FLOWS FROM INVESTING ACTIVITIES

Net divestment in amortized cost securities 1,921 (889,711)
Net investment in securities classified as FVOCI (54,537,133) (2,129,150)
Net investment in subsidiary (1,000,000) -
Net investment in associates - 1,654,885
Dividends received 56,110 52,664
Investment in property and equipment (3,576,179) (1,277,965)
Investment in intangible assets (163,685) (61,336)
Disposal of property and equipment 42 8,853
Net cash used in generated from investing activities (59,218,924) (2,641,760)

CASH FLOWS FROM FINANCING ACTIVITIES

Payment of lease obligations against right-of-use assets (627,441) (548,246)
Dividend paid (6,113,986) (3,696)
Net cash used in financing activities (6,741,427) (551,942)
Increase in cash and cash equivalents during the period 13,135,794 9,396,918
Cash and cash equivalents at the beginning of the period 83,720,548 57,253,408
Cash and cash equivalents at the end of the period 96,856,342 66,650,326

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

PRESIDENT & CEO CHIEF FINANCIAL OFFICER CHAIRMAN DIRECTOR DIRECTOR

March 31, 2024 First Quarter 19

Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

1 STATUS AND NATURE OF BUSINESS

1.1 Faysal Bank Limited (the Bank) was incorporated in Pakistan on October 3, 1994 as a public limited company
under the provisions of the repealed Companies Ordinance, 1984 (now the Companies Act, 2017). Its shares
are listed on the Pakistan Stock Exchange Limited. The Bank is engaged in Shariah compliant modern
Corporate, Commercial and Consumer banking activities. The Bank is operating through 722 branches
(December 31, 2023: 722 branches) including 2 sub-branches (December 31, 2023: 2 sub-branches).

The Registered Office of the Bank is located at Faysal House, ST-02, Shahra-e-Faisal, Karachi.

Ithmaar Bank B.S.C (closed), a fully owned subsidiary of Ithmaar Holdings B.S.C is the parent company of the
Bank, holding directly and indirectly 66.78% (December 31, 2023: 66.78%) of the shareholding of the Bank.
Dar Al-Maal Al-Islami Trust (DMIT), (ultimate parent of the Bank) is the holding company of Ithmaar Holdings
B.S.C.

1.2 During the year, the Bank established a wholly owned subsidiary, Faysal Islami Currency Exchange Company
(Private) Limited (FICEC). FICEC is a private limited company, incorporated in Pakistan with the objective of
dealing in foreign exchange and facilitating remittances. The registered office of FICEC is at ST-02, Faysal
House, Sharah-e-Faisal, Karachi.

1.3 The Pakistan Credit Rating Agency Limited (PACRA) and VIS Credit Rating Company Limited have determined
the Bank's long-term rating as 'AA' (December 31, 2023: 'AA') and the short term rating as 'A1+' (December
31, 2023: 'A1+') on June 23, 2023 and June 27, 2023 respectively.

2 BASIS OF PRESENTATION

2.1 The Bank provides financing mainly through Murabaha, Musawammah, Istisna and other Islamic modes as
briefly explained in note 6.5 to the annual audited unconsolidated financial statements for the year ended
December 31, 2023.

The purchases and sales arising under these arrangements are not reflected in these unconsolidated financial
statements as such but are restricted to the amount of facility actually utilized 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 Shariah Board of the Bank.

2.2 The Bank has controlling interest in Faysal Asset Management Limited (FAML) and Faysal Islami Currency
Exchange Company (Private) Limited and is required to prepare consolidated financial statements under the
provisions of the Companies Act, 2017. These condensed interim financial statements represent the
unconsolidated results of the Bank and a separate set of condensed interim consolidated financial statements
are also being presented by the Bank.

3 STATEMENT OF COMPLIANCE

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

- International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International
Accounting Standards Board (IASB) as notified under the Companies Act, 2017;

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

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

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

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

20 First Quarter March 31, 2024

Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

3.2 As per the directive of the SBP through its letter BPRD (R&P-02)/625-99/2011/3744 dated March 28, 2011,
gain arising on bargain purchase of Pakistan operations of Royal Bank of Scotland (ex-RBS Pakistan) was
credited directly into equity as Non-distributable Capital Reserve (NCR). The SBP allowed the Bank to adjust
the amortisation of intangible assets against the portion of reserve which arose on account of such assets
identified as a result of such acquisition. Accordingly, during the period ended March 31, 2024, the Bank has
adjusted amortisation of intangible assets net of tax amounting to Rs. 10.471 million (period ended March 31,
2023: Rs. 11.704 million) from the NCR.

3.3 These condensed interim unconsolidated financial statements do not include all the information and
disclosures required in the annual audited unconsolidated financial statements, and are limited based on the
format prescribed by the State Bank of Pakistan through BPRD Circular Letter No. 2 of 2023 dated February 9,
2023 and IAS 34 and should be read in conjunction with the annual unconsolidated financial statements for
the financial year ended December 31, 2023.

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

3.4.1 There are certain new and amended standards, interpretations and amendments that are mandatory for the
Bank's accounting periods beginning on January 1, 2024 but are considered not to be relevant or do not have
any significant effect on the Bank's operations to be updated except for the implementation of IFRS 9:
‘Financial Instruments' as detailed in note 4.1.

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

3.5.1 The following revised standards, amendments and interpretations with respect to the accounting and reporting
standards would be effective from the dates mentioned below against the respective standards, amendments
or interpretations:

Effective date (annual periods

Standards, interpretations or amendments beginning on or after)

- Amendments to IAS 21- Lack of Exchangeability January 1, 2025

The above amendments are not expected to have any material impact on the condensed interim
unconsolidated financial statements of the Bank.

3.5.2 As required under SBP Letter No. BPRD/LD-01/850/28853/2022-13054, the details of the net conventional
funded portfolio as at March 31, 2024 are as follows:

----------------------------------------------------------------------------------------------------------------------
Note Rupees '000 ----------------
Assets
Investments 3,002,468
Financing - net 822,930

Liabilities
Due to financial institutions 442
Deposits and other accounts 3,484,624
Other Liabilities 26.1 1,394,420

All efforts are being put in to convert or dispose-off the residual portfolio and appropriate monitoring
mechanisms are in place. Quarterly progress report on the status of the residual portfolio is shared with the
Bank’s Board of Directors, the Shariah Board and the State Bank of Pakistan.

4 MATERIAL ACCOUNTING POLICY INFORMATION

The material accounting policies applied in preparation of these condensed interim unconsolidated financial
statements are the same as applied in the preparation of annual unconsolidated financial statements of the
Bank for the year ended December 31, 2023 except for the following:

March 31, 2024 First Quarter 21

Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

4.1 IFRS 9 - Financial Instruments

During the period, as directed by the SBP vide its BPRD Circular No. 07 of 2023 dated April 13, 2023, IFRS 9:
‘Financial Instruments' became applicable to the Bank. IFRS 9 replaces the existing guidance in IAS 39
Financial Instruments: Recognition and Measurement. The standard addresses recognition, classification,
measurement and derecognition of financial assets and financial liabilities. The standard has also introduced a
new impairment model for financial assets which requires recognition of impairment charge based on
‘expected credit losses' (ECL) approach rather than ‘incurred credit losses' approach as previously followed.
The ECL has impact on all the assets of the Bank which are exposed to credit risk.

The Bank has adopted IFRS 9 from January 1, 2024, using the modified retrospective approach and has not
restated comparatives for the 2023 reporting period, as permitted under the specific transitional provisions in
the standard.

IFRS 9 brings fundamental changes to the accounting for financial assets and to certain aspects of the
accounting for financial liabilities:

Classification and measurement

Under the new standard, classification and measurement of financial assets depends on how these are
managed based on business model and their contractual cash flow characteristics. Financial assets that do
not meet the Solely Payment of Principal and Interest (SPPI) criteria are required to be measured at fair value
through profit or loss regardless of the business model in which they are held.

Financial liabilities are either classified as fair value through profit or loss (FVTPL), when they are held for
trading purposes, or at amortised cost. Financial liabilities classified as FVTPL are measured at fair value.
Financial liabilities classified at amortised cost are initially recorded at fair value and subsequently measured
using the effective interest rate method.

Equity Securities

Quoted equity shares amounting to Rs. 3,049.251 million have been classified as FVTPL. Gains and losses on
disposal of securities classified as FVTPL will be recycled through the profit and loss account.

The Bank has elected to designate equity shares of Rs. 3,929.093 million as fair value through other
comprehensive income (FVOCI) as permitted under IFRS 9. These securities were previously classified as
available-for-sale (AFS). The changes in fair value of such securities will no longer be reclassified to profit or
loss when they are disposed off.

Unquoted equity shares are also required to be measured at fair value under IFRS 9. The fair value of these
securities are determined as per adjusted net asset method valuation as these securities are neither listed nor
market prices are available. Fair value gains or losses has been recognized directly in equity through OCI.

Debt securities and Islamic financing and related assets

Debt securities currently classified as AFS and passing the SPPI test are measured at FVOCI under IFRS 9 as
the Bank’s business model is to hold these assets to collect contractual cash flows and sell the investments.

Debt securities currently classified as held-to-maturity (HTM) and passing the SPPI test are measured at
amortized cost under IFRS 9 as the Bank’s business model is to hold these assets to collect contractual cash
flows.

Debt securities that do not pass the SPPI test measured at FVTPL.

Impairment

The impairment requirements apply to financial assets measured at amortized cost and FVOCI (other than
equity instruments), lease receivables, and certain financing commitments and financial guarantee contracts.
At initial recognition, an impairment allowance (or provision in the case of commitments and guarantees) is
required for expected credit losses (‘ECL’) resulting from default events that are possible within the next 12
months (‘12-month ECL’). In the event of a significant increase in credit risk, a provision is required for ECL
resulting from all possible default events over the expected life of the financial instrument (‘lifetime ECL’).

22 First Quarter March 31, 2024

Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Financial assets where 12-month ECL is recognized are in ‘Stage 1'; financial assets that are considered to
have experienced a significant increase in credit risk are in ‘Stage 2'; and financial assets for which there is
objective evidence of impairment, so are considered to be in default or otherwise credit impaired, are in ‘Stage
3'. Under the SBP’s instructions, the Bank is not required to compute ECL on Government Securities and on
Government guaranteed credit exposure in local currency.

Based on the requirements of IFRS 9 and SBP's IFRS 9 application instructions, the Bank has performed an
ECL assessment considering the following key elements:

- PD: The probability that a counterparty will default over the next 12 months from the reporting date (12-
month ECL, Stage1) or over the lifetime of the product (lifetime ECL, Stage 2).

- EAD: The expected balance sheet exposure at the time of default, incorporating expectations on
drawdowns, amortization, pre-payments and forward-looking information where relevant.

- LGD: An estimate of the loss incurred on a facility upon default by a customer. LGD is calculated as
the difference between contractual cash flows due and those that the Bank expects to receive,
including from the liquidation of any form of collateral. It is expressed as a percentage of the exposure
outstanding on the date of classification of an obligor.

Significant increase in credit risk (SICR)

A SICR is assessed in the context of an increase in the risk of a default occurring over the life of the financial
instrument when compared to that expected at the time of initial recognition. It is not assessed in the context
of an increase in the ECL. The Bank used several qualitative and quantitative measures in assessing SICR.
Quantitative measures relate to deterioration of Obligor Risk Ratings (ORR) or where principal and / or profit
payments are 60 days or more past due. Qualitative factors include unavailability of financial information and
pending litigations.

The effect of this change in accounting policy is as follows:

Impact on the condensed interim unconsolidated statement of financial position:

March 31, January 1,

2024 2024
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------

- Decrease in due from financial institutions (1) -

- Increase in investments 107,792 607,934

- Decrease in islamic financing and related assets (251,005) (6,398,593)

- Decrease in other assets (3,283) (3,657)

Decrease in total assets - net (146,497) (5,794,316)

- Decrease in deferred tax liabilities (95,253) (2,865,357)

- Increase in other liabilities 47,897 53,356

Decrease in total liabilities - net (47,356) (2,812,001)

Decrease in net assets (99,141) (2,982,315)

Impact on the condensed interim unconsolidated statement of changes in equity:

Decrease in surplus on revaluation of assets - net of tax - (961,742)

Increase / (decrease) in unappropriated profit - net of tax 201,273 (2,020,573)

March 31, 2024 First Quarter 23

Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

For the three

months ended
March 31,
2024
----------------------------------------------------------------------------------------------------------------------
Impact on condensed interim unconsolidated profit and loss account: Rupees '000 ----------------

Decrease in gain on securities (394,654)

Increase in credit loss allowance and write offs - net (194,394)
Decrease in profit before taxation (589,048)
Decrease in taxation 288,634
Decrease in profit after taxation (300,414)

------- Rupee -------

Decrease in EPS (0.20)

4.2 Revised format of condensed interim financial statements

The State Bank of Pakistan (SBP) through its BPRD Circular No. 02 dated February 9, 2023 and BPRD Circular
Letter No. 07 of 2023 dated April 13, 2023 has amended the format of quarterly and half yearly financial
statements of banks. All banks are directed to prepare their quarterly and half yearly financial statements on
the revised format effective from accounting year starting from January 1, 2024. Accordingly, the Bank has
prepared these condensed interim unconsolidated financial statements on the new format prescribed by the
SBP.

The adoption of revised format has resulted in following significant changes:

- Right-of-use-assets (note 15) amounting to Rs 10,500.360 million (December 31, 2023: Rs 10,713.046
million) which were previously shown as part of fixed assets are now shown separately on the
unconsolidated statement of financial position.

- Lease liabilities (note 21) amounting to Rs 12,825.722 million (December 31, 2023: Rs 12,868.103
million) which were previously shown as part of other liabilities (note 23) are now shown separately on
the unconsolidated statement of financial position.

5 BASIS OF MEASUREMENT

These condensed interim unconsolidated financial statements have been prepared under the historical cost
convention except for certain property and equipment and non-banking assets acquired in satisfaction of
claims which have been carried at revalued amounts, certain investments and derivative contracts which have
been marked to market and are carried at fair value, obligations in respect of staff retirement benefits and
lease liabilities which have been carried at present value and right-of-use assets which are initially measured
at an amount equal to the corresponding lease liabilities (adjusted for any lease payments and costs) and
depreciated over the respective lease terms.

6 FUNCTIONAL AND PRESENTATION CURRENCY

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

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

7 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The basis for accounting estimates adopted in the preparation of these condensed interim unconsolidated
financial statements is the same as that applied in the preparation of the unconsolidated financial statements
of the Bank for the year ended December 31, 2023 except for measurement of the expected credit loss
allowance and fair value of unlisted equity securities.

24 First Quarter March 31, 2024

 Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

8 FINANCIAL RISK MANAGEMENT

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, 2023.
Un-audited Audited
Note March 31, December 31,
2024 2023
9 ----------------------------------------------------------------------------------------------------------------------
CASH AND BALANCES WITH TREASURY BANKS Rupees '000 ------------------------------

In hand
- local currency 20,423,987 18,287,506
- foreign currencies 1,747,887 1,716,544
22,171,874 20,004,050
With State Bank of Pakistan in
- local currency current accounts 61,610,876 47,120,181
- foreign currency current accounts 2,647,447 2,684,723
- foreign currency deposit accounts 4,132,144 4,323,955
68,390,467 54,128,859
With National Bank of Pakistan in
- local currency current accounts 4,182,319 9,902,199

Prize bonds 9.1 1,530 1,450

Less: Credit loss allowance - -

Cash and balances with treasury banks - net of credit loss allowance 94,746,190 84,036,558

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

Un-audited Audited
Note March 31, December 31,
10 BALANCES WITH OTHER BANKS 2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
In Pakistan
- in current accounts 165,843 10,239

Outside Pakistan
- in current accounts 3,228,782 1,802,160
- in deposit accounts - -

Less: Credit loss allowance - -

Balances with other banks - net of credit loss allowance 3,394,625 1,812,399

11 DUE FROM FINANCIAL INSTITUTIONS

Musharka Placements 11,000,000 -

Less: Credit loss allowance 11.1 (1) -
Due from financial institutions - net of credit loss allowance 10,999,999 -

11.1 Due from financial institutions - Particulars of credit loss allowance

Un-audited Audited
March 31, 2024 December 31, 2023
Due from Credit loss Due from Credit loss
financial allowance financial allowance
institutions held institutions held
----------------------------------------------------------------------------------------------------------------------
Domestic Rupees '000 --------------------------------------------
Performing Stage 1 11,000,000 1 - -

March 31, 2024 First Quarter 25

Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

12 INVESTMENTS

12.1 Investments by type:

Un-audited
Note March 31, 2024
Cost /
Credit loss Surplus / Carrying
amortised
allowance (deficit) value
cost
---------------------------------------------------------------------------------------------------------------------- Rupees '000 --------------------------------------------
FVTPL
Shares 3,054,584 - 206,884 3,261,468
3,054,584 - 206,884 3,261,468

FVOCI
Federal Government securities 579,813,898 (254,948) 541,509 580,100,459
Shares 2,779,894 - 406,353 3,186,247
Non Government debt securities 47,570,934 (672,951) 2,382,609 49,280,592
630,164,726 (927,899) 3,330,471 632,567,298

Amortised Cost .
Non Government debt securities 8,173,043 (1,407,480) - 6,765,563
8,173,043 (1,407,480) - 6,765,563

Associates * 12.5
Faysal Islamic Savings Growth Fund 205,151 - - 205,151
Faysal Islamic Stock Fund 114,509 - - 114,509
Faysal Halal Amdani Fund 1,550,000 - - 1,550,000
1,869,660 - - 1,869,660

Subsidiary * 12.5
Faysal Asset Management Limited 1,139,893 - - 1,139,893
Faysal Islami Currency Exchange
Company (Private) Limited 1,000,000 - - 1,000,000
2,139,893 - - 2,139,893

Total Investments 645,401,906 (2,335,379) 3,537,355 `646,603,882

* related parties
Audited
December 31, 2023
Cost / Provision
Surplus / Carrying
amortised for
(deficit) value
cost diminution
---------------------------------------------------------------------------------------------------------------------- Rupees '000 --------------------------------------------
Available-for-sale securities
Federal Government securities 522,195,325 - 1,949,879 524,145,204
Shares 5,514,441 (1,905,557) 2,245,115 5,853,999
Non Government debt securities 47,917,827 (519,291) 2,371,729 49,770,265
575,627,593 (2,424,848) 6,566,723 579,769,468
Held-to-maturity securities
Non Government debt securities 8,174,964 (1,409,394) - 6,765,570
8,174,964 (1,409,394) - 6,765,570

Associates *
Faysal Islamic Savings Growth Fund 205,151 - - 205,151
Faysal Islamic Stock Fund 114,509 - - 114,509
Faysal Halal Amdani Fund 1,550,000 - - 1,550,000
1,869,660 - - 1,869,660

Subsidiary *
Faysal Asset Management Limited 1,139,893 - - 1,139,893

Total Investments 586,812,110 (3,834,242) 6,566,723 589,544,591

* related parties

26 First Quarter March 31, 2024

 Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Un-audited Audited
March 31, December 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
12.2 Investments given as collateral - at market value

Federal Government Securities

- Ijarah Sukuk 147,967,500 73,587,500

12.3 Credit loss allowance for diminution in value of investments

Opening balance 3,834,242 3,284,350
Impact of adopting IFRS 9 as at January 1, 2024 (1,389,150) -
Restated balance as at January 1 , 2024 2,445,092 3,284,350

Charge / reversals
Charge for the period / year - 1,811,871
Reversals for the period / year (109,713) (58,113)
Reversal on disposals - (1,203,866)
(109,713) 549,892
Transfers - net - -
Amounts written off - -

Closing balance 2,335,379 3,834,242

12.4 Particulars of credit loss allowance against debt securities

Un-audited Audited
March 31, 2024 December 31, 2023
Non-
Outstanding Credit loss
performing Provision
amount allowance
investments
---------------------------------------------------------------------------------------------------------------------- Rupees '000 --------------------------------------------
Domestic
Performing Stage 1 628,704,126 1,346 - -
Underperforming Stage 2 4,926,985 407,269 - -
Non-performing Stage 3
- Substandard - - - -
- Doubtful - - - -
- Loss 1,926,764 1,926,764 1,928,685 1,928,685
1,926,764 1,926,764 1,928,685 1,928,685

Total 635,557,875 2,335,379 1,928,685 1,928,685

March 31, 2024 First Quarter 27

Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

12.5 Investment in subsidiary and associates

Note As at March 31, 2024 (Un-audited) For the period ended March 31, 2024 (Un-audited)

Country of Total
%
incorpo- Assets Liabilities Revenue Profit after tax comprehensive
Holding
ration income

----------------------------------------------------------------------------------------------------------------------
Associate Rupees '000 ----------------------------------------------------------------
Faysal Islamic Savings Growth Fund Pakistan 8.07 2,907,333 19,540 121,707 107,444 107,444
Faysal Islamic Stock Fund Pakistan 44.73 312,262 25,614 23,119 19,506 19,506
Faysal Halal Amdani Fund Pakistan 2.53 62,014,342 204,394 2,502,821 2,340,714 2,340,714

Subsidiary
Faysal Asset Management Limited 12.5.1 Pakistan 99.99 2,484,971 536,842 507,265 167,530 167,530
Faysal Islami Currency Exchange
Company (Private) Limited 12.5.2 Pakistan 100.00 1,021,012 20,271 23,898 741 741

As at December 31, 2023 (Audited) For the period ended March 31, 2023 (Un-audited)

Country of Total
%
incorpo- Assets Liabilities Revenue Profit comprehensive
Holding
ration income

----------------------------------------------------------------------------------------------------------------------
Associate Rupees '000 ----------------------------------------------------------------
Faysal Islamic Savings Growth Fund Pakistan 9.1 2,468,411 19,922 72,365 64,920 64,920
Faysal Islamic Stock Fund Pakistan 28.6 494,748 57,173 (7,586) (13,045) (13,045)
Faysal Halal Amdani Fund Pakistan 3.7 42,865,974 215,288 1,476,619 1,403,901 1,403,901

Subsidiary
Faysal Asset Management
Limited Pakistan 99.99 2,308,798 528,198 214,351 94,692 94,692

12.5.1 Faysal Asset Management Limited (the Company) was incorporated in Pakistan under the provisions of the
repealed Companies Ordinance, 1984 (now Companies Act, 2017) on August 6, 2003 as an unlisted public
limited company. The Company commenced its operations on November 14, 2003. The Company is a Non-
Banking Finance Company (NBFC). The Company has obtained license to carry out asset management and
investment advisory services under the requirements of Non-Banking Finance Companies (Establishment and
Regulation) Rules, 2003 and the Non-Banking Finance Companies and Notified Entities Regulations, 2008.

12.5.2 Faysal Islami Currency Exchange Company (Private) Limited was incorporated in Pakistan on January 16,
2024 under the Companies Act, 2017 ('the Act'). The registered office of the Company is situated at ST-02,
Faysal House, Sharah-e-Faisal, Karachi. The principal activities of the Company are to deal in foreign
exchange and facilitate remittances. The Company has received operational license from State Bank of
Pakistan on March 26, 2024. As at March 31, 2024, the Company had 10 branches all over Pakistan.

28 First Quarter March 31, 2024

Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

13 ISLAMIC FINANCING AND RELATED ASSETS

Note Performing Non-performing Total

Un-audited Audited Un-audited Audited Un-audited Audited
March 31, December 31, March 31, December 31, March 31, December 31,
2024 2023 2024 2023 2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ----------------------------------------------------------------------
Murabaha financing and related assets
Murabaha financing 13.1 48,907,384 38,284,881 81,445 166,424 48,988,829 38,451,305
Advance against Murabaha financing 1,419,597 3,219,979 5,000 5,000 1,424,597 3,224,979
Inventory related to Murabaha 1,122,167 2,174,051 - - 1,122,167 2,174,051
51,449,148 43,678,911 86,445 171,424 51,535,593 43,850,335
Running Musharaka financing
Running Musharaka 188,143,003 195,753,370 - 545,166 188,143,003 196,298,536
188,143,003 195,753,370 - 545,166 188,143,003 196,298,536
Istisna financing and related assets
Istisna 36,770,561 36,501,975 1,173,240 551,792 37,943,801 37,053,767
Advance against Istisna 29,296,297 30,317,852 316,180 172,166 29,612,477 30,490,018
Inventory related to Istisna 14,757,659 7,382,419 55,871 - 14,813,530 7,382,419
80,824,517 74,202,246 1,545,291 723,958 82,369,808 74,926,204
Tijarah financing and related assets
Tijarah 2,499,423 2,455,035 320,222 316,722 2,819,645 2,771,757
Advance against Tijarah 604,807 766,202 - - 604,807 766,202
Inventory related to Tijarah 2,015,660 4,136,549 - 3,500 2,015,660 4,140,049
5,119,890 7,357,786 320,222 320,222 5,440,112 7,678,008
Musawamah financing and related assets
Musawamah 3,063,083 2,788,837 111,423 100,516 3,174,506 2,889,353
Advance against Musawamah 441 4,190 - - 441 4,190
Inventory related to Musawamah 3,705 7,408 - - 3,705 7,408
3,067,229 2,800,435 111,423 100,516 3,178,652 2,900,951
Salam financing and related assets
Salam 9,061,572 100,000 1,200 1,200 9,062,772 101,200
Advance against Salam 100,000 9,850,771 - - 100,000 9,850,771
Inventory related to Salam 638,428 - - - 638,428 -
9,800,000 9,950,771 1,200 1,200 9,801,200 9,951,971
Diminishing Musharaka financing and
related assets
Diminishing Musharaka 211,401,846 210,560,169 6,660,771 5,624,139 218,062,617 216,184,308
Advanced against Diminishing Musharaka 8,719,968 10,225,549 35,000 97,500 8,754,968 10,323,049
220,121,814 220,785,718 6,695,771 5,721,639 226,817,585 226,507,357
Wakala Istithmar financing and
related assets
Wakala Istithmar 6,302,669 6,302,669 - - 6,302,669 6,302,669
6,302,669 6,302,669 - - 6,302,669 6,302,669

Tawwaruq 14,294,791 13,673,003 67,663 98,423 14,362,454 13,771,426

Advance against Islamic export refinance - 2,414,376 - - - 2,414,376
Musharaka 10,975 27,534 1,028 722 12,003 28,256
Bai salam 48,387 277,076 - - 48,387 277,076
Islamic financing and related assets - Gross 579,182,423 577,223,895 8,829,043 7,683,270 588,011,466 584,907,165

Other financing 436,237 478,042 14,359,676 15,376,371 14,795,913 15,854,413

Gross Financing 579,618,660 577,701,937 23,188,719 23,059,641 602,807,379 600,761,578

Credit loss allowance against financing 13.4

- Stage 1 (1,955,485) - - - (1,955,485) -
- Stage 2 (5,571,783) - - - (5,571,783) -
- Stage 3 - - (18,966,812) - (18,966,812) -
- Specific provision - - - (19,172,592) - (19,172,592)
- General provision - (877,670) - - - (877,670)
(7,527,268) (877,670) (18,966,812) (19,172,592) (26,494,080) (20,050,262)
Financing - net of credit loss allowance 572,091,392 576,824,267 4,221,907 3,887,049 576,313,299 580,711,316

March 31, 2024 First Quarter 29

Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Un-audited Audited
Note March 31, December 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------

13.1 Murabaha receivable - gross 13.1.2 51,207,952 39,623,889

Less: Deferred murabaha income 13.1.3 (226,112) (29,223)
Profit receivable shown in other assets (1,993,011) (1,143,361)
Murabaha financings 13.1.1 48,988,829 38,451,305

13.1.1 The movement in Murabaha financing during the period / year is as follows:
Opening balance 38,451,305 10,837,970
Sales during the period / year 49,621,823 218,668,554
Adjusted during the period / year (39,084,299) (191,055,219)
Closing balance 48,988,829 38,451,305

13.1.2 Murabaha sale price 51,207,952 39,623,889

Murabaha purchase price (48,988,829) (38,451,305)
2,219,123 1,172,584
13.1.3 Deferred murabaha income
Opening balance 29,223 350,063
Arising during the period / year 2,004,899 4,874,300
Less: recognised during the period / year (1,808,010) (5,195,140)
Closing balance 226,112 29,223

13.2 Particulars of Islamic financing and related assets

- in local currency 601,186,584 599,815,539

- in foreign currencies 1,620,795 946,039
602,807,379 600,761,578

13.3 Islamic financing and related assets include Rs. 23,188.719 million (December 31, 2023: Rs. 23,059.641
million) which have been placed under non-performing / Stage 3 status as detailed below:

Un-audited Audited
March 31, 2024 December 31, 2023
Category of classification Non-performing Credit loss Non-performing
Provision
financing allowance financing
----------------------------------------- Rupees'000 -----------------------------------------
Domestic
- other assets especially mentioned 16,581 143 204,748 448
- substandard 1,220,323 160,729 883,657 104,142
- doubtful Stage 3 1,188,045 431,259 670,909 170,824
- loss 20,763,770 18,374,681 21,300,327 18,897,178
Total 23,188,719 18,966,812 23,059,641 19,172,592

30 First Quarter March 31, 2024

 Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

13.4 Particulars of credit loss allowance against Islamic financing and related assets

Un-audited Audited
March 31, 2024 December 31, 2023
General Specific General
Stage 3 Stage 2 Stage 1 Total Total
Provision Provision Provision
---------------------------------------------------------------------------------------------------------------------- Rupees '000 -------------------------------------------------------------

Opening balance 19,172,592 - - 877,670 20,050,262 18,557,417 771,609 19,329,026

Impact of adopting IFRS 9 as of January 1, 2024 - 5,313,762 1,962,501 (877,670) 6,398,593 - - -
Restated balance as at January 1, 2024 19,172,592 5,313,762 1,962,501 - 26,448,855 18,557,417 771,609 19,329,026

Exchange adjustment (10,063) - - - (10,063) 132,838 - 132,838

Charge for the period / year 512,797 258,021 - - 770,818 1,960,357 106,061 2,066,418
Reversals during the period / year (654,896) - (7,016) - (661,912) (1,338,179) - (1,338,179)
(142,099) 258,021 (7,016) - 108,906 622,178 106,061 728,239
Amounts written off (53,618) - - - (53,618) (139,841) - (139,841)

Closing balance 18,966,812 5,571,783 1,955,485 - 26,494,080 19,172,592 877,670 20,050,262

13.4.1 Credit loss allowance for Stage 1 and Stage 2 represents credit loss allowance maintained against performing
portfolio as required under IFRS 9.

13.4.2 As allowed by the SBP, the Bank has availed benefit of forced sale value (FSV) of collaterals held as security
of Rs 2,470.489 million (December 31, 2023: Rs 2,457.777 million) relating to financing while determining the
provisioning requirement against non-performing financing as at March 31, 2024. The additional profit arising
from availing the FSV benefit (net of tax) as at March 31, 2024 which is not available for distribution as either
cash or stock dividend to shareholders and bonus to employees approximately amounted to Rs 1,259.949
million (December 31, 2023: Rs 1,253.466 million).

13.5 Islamic financing and related assets - Particulars of credit loss allowance

Un-audited
March 31, 2024
Stage 1 Stage 2 Stage 3
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ----------------------------------

Opening balance - - 19,172,592

Impact of adopting IFRS 9 as at January 1, 2024 1,962,501 5,313,762 -
Restated balance as at January 1, 2024 1,962,501 5,313,762 19,172,592

New Financing / Increase 470,353 829,023 113,448

Financing derecognised or repaid (327,848) (321,174) (654,896)
Transfer to stage 1 - - -
Transfer to stage 2 (113,321) 113,321 -
Transfer to stage 3 (36,200) (363,149) 399,349
(7,016) 258,021 (142,099)

Amounts written off / charged off - - (53,618)

Exchange adjustment - - (10,063)
Closing balance 1,955,485 5,571,783 18,966,812

March 31, 2024 First Quarter 31

 Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

13.6 Islamic financing and related assets - Category of classification

Un-audited Audited
March 31, 2024 December 31, 2023
Outstanding Credit loss Outstanding
Provision
amount allowance amount
------------------------------------------------------------------------------------------------------------------
Domestic Rupees '000 -------------------------------------------------
Performing Stage 1 501,048,892 1,955,485 577,701,937 877,670
Underperforming Stage 2 78,569,768 5,571,783 - -
Non-Performing
Other assets especially mentioned 16,581 143 204,748 448
Substandard 1,220,323 160,729 883,657 104,142
Stage 3
Doubtful 1,188,045 431,259 670,909 170,824
Loss 20,763,770 18,374,681 21,300,327 18,897,178
Total 602,807,379 26,494,080 600,761,578 20,050,262

Un-audited Audited
Note March 31, December 31,
2024 2023
14----------------------------------------------------------------------------------------------------------------------
PROPERTY AND EQUIPMENT Rupees '000 ------------------------------
Capital work-in-progress 14.1 5,274,395 4,115,708
Property and equipment 27,222,389 25,439,596
32,496,784 29,555,304
14.1 Capital work-in-progress

Civil works 522,286 266,236

Equipment 3,563,960 2,968,971
Furniture and fixture 428,652 299,479
Vehicles 42,524 16,824
Land and building 716,973 564,198
5,274,395 4,115,708

Un-audited
Quarter ended
March 31, March 31,
2024 2023
----------------------------------------------------------------------------------------------------------------------
14.2 Additions to property and equipment Rupees '000 ------------------------------

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

Capital work-in-progress - net 1,158,687 542,516

Property and equipment

Furniture and fixture 92,805 38,633
Electrical, office and computer equipment 1,485,599 189,726
Vehicles 3,880 31,082
Building on leasehold land 126,376 5,485
Leasehold land 438,807 -
Leasehold improvements 270,025 470,523
2,417,492 735,449
Total 3,576,179 1,277,965

14.3 Disposal of property and equipment

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

Furniture and fixture - 11

Electrical, office and computer equipment 18 560
Others - 208
Total 18 779

32 First Quarter March 31, 2024

Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Un-audited Audited
Note March 31, December 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
15 RIGHT-OF-USE ASSETS
Buildings Buildings
Opening balance
Cost 18,669,210 16,341,616
Accumulated Depreciation 7,956,164 6,032,837
Net carrying amount 10,713,046 10,308,779

Additions during the period / year 408,699 2,435,802

Modifications during the period / year - 21,292
Deletions during the period / year (135,604) (129,500)
Depreciation charge for the period / year (485,781) (1,923,327)
Net carrying amount 10,500,360 10,713,046

16 INTANGIBLE ASSETS

Capital work-in-progress 16.1 806,979 798,462

Computer software 1,223,745 1,164,099
Customer relationship 348,683 369,214
1,572,428 1,533,313
Total 2,379,407 2,331,775

16.1 Capital work-in-progress

Computer software 806,979 798,462

Un-audited
Quarter ended
March 31, March 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
16.2 Additions to intangible assets

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

Computer software - directly purchased 155,168 163,137

Un-audited Audited
Note March 31, December 31,
2024 2023
17 OTHER ASSETS

Profit / return accrued in local currency 67,181,120 44,142,282

Profit / return accrued in foreign currencies 148,997 82,278
Advances, deposits, advance rent and other prepayments 2,032,307 1,650,813
Non-banking assets acquired in satisfaction of claims 893,115 929,659
Mark to market gain on forward foreign exchange contracts 174,771 550,232
Acceptances 23 10,402,914 13,152,356
Credit cards and other products fee receivable 1,447,190 1,235,999
Receivable from brokers against sale of shares - 89,252
Dividend receivable 89,810 75,348
Receivable from 1Link (Private) Limited 8,357,097 4,407,978
Rebate receivable - net 480,127 280,127
Receivable from defined benefit plan 247 90,806
Remittances receivable from Western Union 1,846,661 1,307,125
Others 2,592,671 1,966,714
95,647,027 69,960,969
Less: credit loss allowance held against other assets 17.1 (331,887) (327,580)
Other assets - net of credit loss allowance 95,315,140 69,633,389
Surplus on revaluation of non-banking assets acquired in
satisfaction of claims 1,734,104 1,735,172
Other assets - total 97,049,244 71,368,561

March 31, 2024 First Quarter 33

Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Un-audited Audited
March 31, December 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
17.1 Credit loss allowance held against other assets

Dividend receivable 74,342 75,348

Receivable from customers 51,172 52,799
Security deposits 22,994 22,994
Acceptances 6,940 -
Others 176,439 176,439
331,887 327,580

17.1.1 Movement in Credit loss allowance held against other assets

Opening balance 327,580 325,254

Impact of adopting IFRS 9 as at January 1, 2024 3,657 -
Restated balance as at January 1, 2024 331,237 325,254

Charge for the period / year 3,283 2,731

Reversals during the period / year (2,633) (405)
650 2,326

Closing balance 331,887 327,580

18 BILLS PAYABLE

In Pakistan 12,374,874 16,550,469

19 DUE TO FINANCIAL INSTITUTIONS

Secured
To the State Bank of Pakistan (SBP) under:
Long term financing facility 327 -
Long term financing facility for renewable power energy (RPE) 115 230
Islamic export refinance scheme - part I and II 28,780,171 30,665,904
Islamic financing for renewable energy 6,680,046 6,641,671
Islamic long term financing facility 10,728,663 11,126,779
Islamic temporary economic refinance scheme 30,186,069 31,034,309
Islamic refinance facility for combating COVID-19 149,444 166,111
Islamic refinance facility for storage of agricultural produce 485,005 513,439
Scheme of Islamic Rupee-based discounting facility under EFS/IERS 683,569 708,777
77,693,409 80,857,220
Due to SBP under Open Market Operations (OMO) 146,437,529 73,594,497
Due to other financial institutions 3,392,290 3,402,344
Total secured 227,523,228 157,854,061

Unsecured
Overdrawn nostro accounts 1,284,473 2,128,409
Musharaka acceptances 16,325,000 6,904,333
Total unsecured 17,609,473 9,032,742

245,132,701 166,886,803

34 First Quarter March 31, 2024

 Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

20 DEPOSITS AND OTHER ACCOUNTS

Un-audited Audited
March 31, 2024 December 31, 2023
In local In foreign In local In foreign
Total Total
currency currencies currency currencies
----------------------------------------------------------------------------------------------------------------- Rupees '000 --------------------------------------------------------------------
Customers
Current deposits 295,029,550 31,800,936 326,830,486 271,673,365 30,468,754 302,142,119
Savings deposits 274,142,563 22,649,123 296,791,686 246,343,937 21,489,149 267,833,086
Term deposits 217,859,132 1,689,061 219,548,193 244,250,942 1,484,842 245,735,784
Margin deposits 13,607,292 83,773 13,691,065 12,175,267 48,071 12,223,338
800,638,537 56,222,893 856,861,430 774,443,511 53,490,816 827,934,327
Financial institutions
Current deposits 19,040,272 295,774 19,336,046 11,726,778 275,306 12,002,084
Savings deposits 166,353,054 - 166,353,054 169,738,779 - 169,738,779
Term deposits 7,090,000 - 7,090,000 8,600,547 - 8,600,547
192,483,326 295,774 192,779,100 190,066,104 275,306 190,341,410
993,121,863 56,518,667 1,049,640,530 964,509,615 53,766,122 1,018,275,737

Un-audited Audited
March 31, December 31,
2024 2023
21----------------------------------------------------------------------------------------------------------------------
LEASE LIABILITIES Rupees '000 ------------------------------

Outstanding amount at the start of the period / year 12,868,103 11,827,762

Additions during the period / year 346,814 1,232,013
Lease payments including profit (627,441) (1,672,349)
Profit expense for the period / year 393,974 1,528,718
Termination / deletion during the period / year (155,728) (48,041)
Outstanding amount at the end of the period / year 12,825,722 12,868,103

21.1 Liabilities Outstanding

Not later than one year 58,134 218,318
Later than one year and upto five years 3,024,949 2,896,857
Over five years 9,742,639 9,752,928
Total at the period / year end 12,825,722 12,868,103

21.2 This carries effective charge rate of 12.4% per annum (December 31, 2023: 12.7%).

22 DEFERRED TAX LIABILITIES

Taxable temporary differences on

- surplus on revaluation of property and equipment 2,059,906 2,093,908
- surplus on revaluation of non-banking assets 15,678 16,201
- surplus on revaluation of investments 1,631,931 3,217,694
- fair value adjustment relating to net assets acquired
upon amalgamation 170,855 180,916
- accelerated tax depreciation 452,614 350,473
4,330,984 5,859,192
Deductible temporary differences on
- credit loss allowance investments (112,717) (847,159)
- credit loss allowance against financing, off balance sheet etc. (3,449,771) 20,472
- credit loss allowance against other assets (128,697) (125,297)
(3,691,185) (951,984)
639,799 4,907,208

March 31, 2024 First Quarter 35

Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Un-audited Audited
Note March 31, December 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
23 OTHER LIABILITIES

Profit / return payable in local currency 16,301,953 13,233,050

Profit / return payable in foreign currencies 15,342 9,728
Unearned commission and income on bills discounted 1,538,585 1,496,869
Accrued expenses 5,881,391 6,392,588
Acceptances 17 10,402,914 13,152,356
Dividend payable including unclaimed dividends 4,000,087 7,078,679
Mark to market loss on forward foreign exchange contracts 959,277 664,315
Current taxation (provision less payments) 929,677 3,219,685
Credit loss allowance against off-balance sheet obligations 23.1 246,300 91,297
Charity fund balance - 93,385
Withholding tax payable 916,614 261,322
Federal excise duty payable 167,619 159,996
Payable to brokers against purchase of shares 9,467 91,311
Fair value of derivative contracts 1,394,420 1,657,226
Payable related to credit cards and other products 89,999 540,153
Funds held as security 330,047 321,357
Payable to 1Link (Private) Limited 799,394 595,002
Takaful payable 58,028 59,974
Clearing and settlement accounts 18,878,769 10,836,330
Others 754,733 432,246
63,674,616 60,386,869

23.1 Credit loss allowance against off-balance sheet obligations

Opening balance 91,297 87,700

Impact of adopting IFRS 9 as at January 1, 2024 53,356 -
Restated balance as at January 1, 2024 144,653 87,700

Charge for the period / year 101,647 3,597

Reversals during the period / year - -
101,647 3,597

Closing balance 246,300 91,297

24 SURPLUS ON REVALUATION OF ASSETS - NET OF TAX

Surplus on revaluation of:

- Securities measured at FVOCI-Debt 2,924,118 4,321,608
- Securities measured at FVOCI-Equity 406,353 2,245,115
- Property and equipment 12,107,588 12,176,979
- Non-banking assets acquired in satisfaction of claims 1,734,104 1,735,172
17,172,163 20,478,874
Deferred tax on surplus on revaluation of:
- Securities measured at FVOCI-Debt (1,432,818) (2,117,588)
- Securities measured at FVOCI-Equity (199,112) (1,100,106)
- Property and equipment (2,059,906) (2,093,908)
- Non-banking assets acquired in satisfaction of claims (15,678) (16,201)
(3,707,514) (5,327,803)

13,464,649 15,151,071

36 First Quarter March 31, 2024

Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Un-audited Audited
Note March 31, December 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
25 CONTINGENCIES AND COMMITMENTS

Guarantees 25.1 42,324,365 39,050,948

Commitments 25.2 293,462,225 225,759,797
Other contingent liabilities 25.3 4,122,244 4,122,244
339,908,834 268,932,989

25.1 Guarantees

Financial guarantees 6,165,760 4,523,565

Performance guarantees 9,655,989 9,201,571
Other guarantees 26,502,616 25,325,812
42,324,365 39,050,948

25.2 Commitments

Documentary credits and short-term trade-related transactions

- letters of credit 78,127,865 80,258,955

Commitments in respect of:

- forward foreign exchange contracts 25.2.1 61,308,394 65,125,446
- forward government securities transactions 25.2.2 147,958,500 73,777,500
- derivatives - cross currency (notional principal) 25.2.3 1,395,192 1,678,515
- extending credit (irrevocable) 25.5 4,008,151 3,429,739

Commitments for acquisition of:

- property and equipment 409,604 1,180,860
- intangible assets 254,519 308,782

293,462,225 225,759,797

25.2.1 Commitments in respect of forward foreign exchange contracts

Purchase 54,109,979 55,514,935

Sale 7,198,415 9,610,511
61,308,394 65,125,446

25.2.2 Commitments in respect of forward government securities transactions

Purchase 147,958,500 73,777,500

25.2.3 Commitments in respect of derivatives

Cross currency swaps

Sale 26.1 1,395,192 1,678,515

March 31, 2024 First Quarter 37

Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Un-audited Audited
Note March 31, December 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
25.3 Other contingent liabilities

Suit filed by a customer for recovery of alleged losses suffered which

is pending in the Honorable High Court of Sindh. The Bank’s legal
advisors are confident that the Bank has a strong case 2,510,000 2,510,000
Indemnity issued favouring the Honorable High Court in one of the cases 457,543 457,543
Tax liability of gain on bargain purchase on the acquisition of
ex-RBS Pakistan 25.3.1 1,154,701 1,154,701
4,122,244 4,122,244

25.3.1 Income tax assessments of the Bank have been finalised upto the tax year 2023 (accounting year ended
December 31, 2022). Income tax return for tax year 2024 (accounting year ended December 31, 2023) will be
filed by the Bank within stipulated timeline.

The department and the Bank has disagreement on a matter relating to taxability of gain on bargain purchase
on the acquisition of ex-RBS Pakistan. The additional tax liability on the matter amounts to Rs. 1,154.701
million (December 31, 2023: Rs. 1,154.701 million). The Commissioner Inland Revenue (Appeals) [CIR(A)] had
deleted the said additional tax liability, however the income tax department had filed an appeal with the
Appellate Tribunal Inland Revenue (ATIR) against the order of CIR(A). During the current period, the ATIR
passed an order and maintained the decision of the CIR(A) in favour of the Bank that gain on bargain
purchase is not taxable. Subsequently, the department has challenged the order in Honorable High Court of
Sindh. However, the management of the Bank is confident that the matter will be decided in the Bank's favour
and accordingly, no provision has been recorded in these condensed interim unconsolidated financial
statements in respect of this matter.

25.4 There are certain claims against the Bank not acknowledged as debt amounting to Rs 33,605.629 million
(December 31, 2023: Rs 29,647.217 million). These mainly represent counter claims filed by the borrowers for
restricting the Bank from disposal of assets (such as mortgaged / pledged assets kept as security), cases
where the Bank was proforma defendant for defending its interest in the underlying collateral kept by it at the
time of financing, certain cases filed by ex-employees of the Bank for damages sustained by them
consequent to the termination from the Bank's employment and cases for damages towards opportunity
losses suffered by the customers due to non-disbursements of running finance facility as per the agreed
terms. The above also includes an amount of Rs 25,299.030 million (December 31, 2023: 25,299.030 million)
in respect of a suit filed against the Bank for declaration, recovery of monies, release of securities, rendition of
account and damages.

Based on legal advice and / or internal assessments, the management is confident that the above matters will
be decided in the Bank's favour and accordingly no provision has been made in these condensed interim
unconsolidated financial statements.

25.5 Commitments to extend credits

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. 4,008.151 million (December 2023: Rs. 3,429.739 million)
which are irrevocable in nature.
Un-audited Audited
March 31, December 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
26 DERIVATIVE INSTRUMENTS

Cross currency swaps (notional principal) 1,395,192 1,678,515

38 First Quarter March 31, 2024

Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

26.1 Product analysis

March 31, 2024 (Un-audited)

Cross currency swaps
Counterparties
Notional Mark to
principal market loss
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
With banks for
Hedging - -
Market making 134,605 (151,157)

With other entities for

Hedging - -
Market making 1,260,587 (1,243,263)

Total
Hedging - -
Market making 1,395,192 (1,394,420)

December 31, 2023 (Audited)

Cross currency swaps
Counterparties
Notional Mark to
principal market gain
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
With banks for
Hedging - -
Market making 101,866 (139,900)
With other entities for
Hedging - -
Market making 1,576,649 (1,517,326)
Total
Hedging - -
Market making 1,678,515 (1,657,226)
Un-audited
Quarter ended
March 31, March 31,
2024 2023
27 PROFIT / RETURN EARNED
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
On:
Financing 27,125,728 17,351,875
Investments 32,118,655 17,334,253
Due from financial institutions 208,225 149,441
Balances with banks 738 1,782
59,453,346 34,837,351

27.1 Profit / return recognised on:

Financial assets measured at amortised cost 27,722,381
Financial assets measured at fair value through OCI 31,730,965
59,453,346

28 PROFIT / RETURN EXPENSED

On:
Deposits 29,674,012 13,747,594
Due to financial institutions 9,085,773 7,026,366
Lease liability against right-of-use assets 393,974 353,064
Cost of foreign currency swaps against foreign currency deposits / Due to FIs 1,614,294 670,293
40,768,053 21,797,317

March 31, 2024 First Quarter 39

Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Un-audited
Quarter ended
Note March 31, March 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
28.1 Profit / return expense calculated using effective profit rate method 39,153,759
Other financial liabilities 1,614,294
40,768,053

29 FEE AND COMMISSION INCOME

Branch banking customer fees 321,227 264,206

Consumer finance related fees 151,166 153,937
Card related fees 1,139,153 975,968
Credit related fees 13,057 5,561
Investment banking fees 98,952 93,307
Commission on trade 327,484 151,103
Commission on guarantees 36,648 54,800
Commission on cash management 40,706 28,401
Commission on remittances including home remittances 269,492 96,965
Commission on bancatakaful 22,786 32,207
Commission on sale of funds units 137,370 57,771
Others 16,479 23,033
2,574,520 1,937,259

30 GAIN / (LOSS) ON SECURITIES

Realised 30.1 128,219 (892,283)

Unrealised - Measured at FVTPL 12.1 206,884 -
335,103 (892,283)
30.1 Realised Gain / (loss) on:

Federal Government securities 34,433 (145,884)

Shares 89,246 (761,015)
Associates 4,540 -
Open end mutual funds - 14,616
128,219 (892,283)

30.2 Net gain / (loss) on financial assets / liabilities

Net gain / (loss) on financial assets / liabilities measured at FVTPL:

Designated upon initial recognition 286,045
Mandatorily measured at FVTPL -
286,045
Net gain / (loss) on financial assets / liabilities measured at amortised cost -
Net gain / (loss) on financial assets measured at FVOCI 44,518
Net gain / (loss) on investments in equity instruments designated at FVOCI -
44,518
Net gain / (loss) on investments in associates 4,540

335,103
31 OTHER INCOME

Rent on property 70,921 55,882

Gain on disposal of property and equipment- net 24 8,190
Gain on termination of leases (IFRS 16) 19,563 -
Notice pay recovered 2,769 2,368
Scrap income 6,552 19
Others 828 116
100,657 66,575

40 First Quarter March 31, 2024

Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Un-audited
Quarter ended
Note March 31, March 31,
2024 2023
32----------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES Rupees '000 ------------------------------

Total compensation expense 4,170,010 2,956,139

Property expense
Rent and taxes 60,355 66,751
Takaful 38,363 27,964
Utilities cost 297,038 281,393
Security (including guards) 443,907 338,215
Repair and maintenance (including janitorial charges) 259,382 216,757
Depreciation on owned property and equipment 229,475 198,099
Depreciation on non-banking assets 786 1,686
Depreciation on right-of-use assets 485,781 444,049
Others 55,926 54,741
1,871,013 1,629,655
Information technology expenses
Software maintenance 1,201,189 786,906
Hardware maintenance 110,073 84,570
Depreciation 193,284 94,207
Amortisation 95,521 70,111
Network charges 99,848 87,431
1,699,915 1,123,225
Other operating expenses
Directors' fees and allowances 43,040 40,640
Legal and professional charges 34,083 32,688
Outsourced services costs - staff 222,587 159,647
Travelling and conveyance 89,890 55,737
NIFT clearing charges 46,095 20,274
Depreciation 211,939 151,692
Training and development 13,789 15,943
Postage and courier charges 59,863 68,040
Communication 308,963 178,956
Marketing, advertisement and publicity 485,847 488,332
Auditors’ remuneration 15,112 6,646
Takaful 189,512 211,716
Stationery and printing 280,943 116,081
Bank fees and charges 80,195 27,717
Brokerage and commission 12,053 8,625
Deposit protection premium 212,780 149,786
Credit card bonus points redemption 78,700 96,292
Others 450,171 257,872
2,835,562 2,086,684
10,576,500 7,795,703

33 OTHER CHARGES

Penalties imposed by the State Bank of Pakistan 4,455 317

34 CREDIT LOSS ALLOWANCE AND WRITE OFFS - NET

Credit loss allowance against due from financial institutions 11.1 1 -

Credit loss allowance against investments 12.3 (109,713) 1,382,930
Credit loss allowance against Islamic financing and related assets 13.4 108,906 59,480
Credit loss allowance against other assets 17.1.1 650 -
Credit loss allowance against off balance sheet obligations 23.1 101,647 650
Bad debts written off directly 4,503 5,328
Recoveries of written off / charged off bad debts (73,886) (83,487)
32,108 1,364,901

March 31, 2024 First Quarter 41

Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Un-audited
Quarter ended
March 31, March 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
35 TAXATION

Current 6,343,699 3,627,960

Prior years (190,000) 55,000
Deferred (189,022) (656,524)
5,964,677 3,026,436

36 BASIC EARNINGS PER SHARE

Profit after tax for the period 6,512,841 3,211,152

Number of shares
in thousands

Weighted average number of ordinary shares 1,517,697 1,517,697

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

Basic earnings per share 4.29 2.12

36.1 Diluted earnings per share has not been presented as the Bank does not have any convertible instruments in
issue at March 31, 2024 and March 31, 2023 which would have any effect on the earnings per share if the
option to convert is exercised.

37 FAIR VALUE MEASUREMENTS

The fair value of quoted securities other than those classified under held to collect model, is based on quoted
market price. Quoted securities classified under held to collect model are carried at amortized cost. The fair
value of unquoted equity securities, other than investments in associates and subsidiaries, is determined on
the basis of adjusted net asset method as per their latest available financial statements.

The fair value of unquoted debt securities, fixed term loans, other assets, other liabilities, fixed term deposits
and borrowings cannot be calculated with sufficient reliability due to the absence of a current and active
market for these assets and liabilities and reliable data regarding market rates for similar instruments.

37.1 Fair value of financial assets

The Bank measures fair values using the following fair value hierarchy that reflects the significance of the
inputs used in making the measurements:

Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or
liabilities.

Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from
prices).

Level 3: Fair value measurements using input for the asset or liability that are not based on observable
market data (i.e. unobservable inputs).

42 First Quarter March 31, 2024

Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

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:

March 31, 2024 (Un-audited)

Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------------------------------------------------
On-balance sheet financial instruments Rupees '000 --------------------------------------------

Financial assets - measured at fair value

Investments
Federal Government securities - 580,100,459 - 580,100,459
Shares 5,215,831 1,231,884 - 6,447,715
Non-Government debt securities 49,280,592 - 49,280,592

Financial assets - disclosed but not measured at fair value

Investments
Non-Government debt securities - 6,780,900 - 6,780,900

Non-financial assets - measured at fair value

Property and equipment (land and buildings) - - 18,330,124 18,330,124
Non-banking assets acquired in satisfaction of claims - - 2,627,219 2,627,219

Off-balance sheet financial instruments - measured at fair value

Forward purchase of foreign exchange - 54,109,979 - 54,109,979
Forward sale of foreign exchange - 7,198,415 - 7,198,415
Derivatives sales - 1,395,192 - 1,395,192

December 31, 2023 (Audited)

Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------------------------------------------------
On-balance sheet financial instruments Rupees '000 --------------------------------------------

Financial assets - measured at fair value

Investments
Federal Government securities - 524,145,204 - 524,145,204
Shares 5,746,460 107,539 - 5,853,999
Non-Government debt securities - 49,770,265 - 49,770,265

Financial assets - disclosed but not measured at fair value

Investments
Non-Government debt securities - 6,779,489 - 6,779,489

Non-financial assets - measured at fair value

Property and equipment (land and buildings) - - 17,855,189 17,855,189
Non-banking assets acquired in satisfaction of claims - - 2,667,419 2,667,419

Off-balance sheet financial instruments - measured at fair value

Forward purchase of foreign exchange - 55,514,935 - 55,514,935
Forward sale of foreign exchange - 9,610,511 - 9,610,511
Derivatives sales - 1,678,515 - 1,678,515

The Bank's policy is to recognise transfers into and out of the different fair value hierarchy levels at the date
when the event or change in circumstances require the Bank to exercise such transfers.

March 31, 2024 First Quarter 43

Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Valuation techniques used in determination of fair values within level 2

Item Valuation approach and input used

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

The fair value of unquoted equity securities is determined on the basis of

Unlisted ordinary shares adjusted net asset method as per their latest available financial
statements.

Fair values of Sukuk certificates are determined using the MUFAP or PSX
Sukuk Certificates rates.

Forward foreign The valuation has been determined by interpolating the mark-to-market
exchange contracts currency rates announced by the State Bank of Pakistan.

The Bank enters into derivative contracts with various counterparties.

Derivatives that are valued using valuation techniques with market
observable inputs are mainly cross currency swaps and forward foreign
Derivative instruments
exchange contracts. The most frequently applied valuation techniques
include forward pricing and swap models, using present value
calculations.

Units of mutual funds are valued using the net asset value (NAV)
Mutual funds
announced by the Mutual Funds Association of Pakistan (MUFAP).

Valuation techniques used in determination of fair valuation of financial instruments within level 3

Item Valuation approach and input used

Land and buildings are revalued by professionally qualified valuers as per
Property and equipment the accounting policy disclosed in the unconsolidated financial statements
(land and buildings) of the Bank for the year ended December 31, 2022.

Non-banking assets NBAs are valued by professionally qualified valuers as per the accounting
(NBAs) acquired in policy disclosed in the unconsolidated financial statements of the Bank for
satisfaction of claims the year ended December 31, 2023.

The valuations, mentioned above, are conducted by the valuation experts appointed by the Bank which are
also on the panel of the Pakistan Banks' Association (PBA). The valuation experts use a market based
approach to arrive at the fair value of the Bank’s properties. The market approach uses prices and other
relevant information generated by market transactions involving identical or 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 quantitative
disclosure of sensitivity has not been presented in these condensed interim unconsolidated financial
statements.

44 First Quarter March 31, 2024

 Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

38 SEGMENT INFORMATION

38.1 Segment details with respect to business activities

2024
Retail CIBG Treasury SAM Others Total
----------------------------------------------------------------------------------------------------------------------
Profit and loss account for the
Rupees '000 -------------------------------------------------------------
quarter ended March 31, 2024
(Un-audited)
External funded revenue (22,444,721) 18,712,188 23,007,506 51,087 (640,767) 18,685,293
Inter segment revenue - net 40,967,661 (18,514,073) (24,025,601) 226,578 1,345,435 -
External non-funded revenue 2,423,299 935,232 2,382,224 1,381 (1,078,681) 4,663,455
Total income 20,946,239 1,133,347 1,364,129 279,046 (374,013) 23,348,748

Segment direct expenses 6,462,445 343,483 133,146 80,069 3,819,979 10,839,122

Inter segment expense allocation 3,289,934 381,847 77,767 70,431 (3,819,979) -
Total expenses 9,752,379 725,330 210,913 150,500 - 10,839,122
Credit loss allowance 42,189 257,245 (317,741) (419,510) 469,925 32,108
Profit before tax 11,151,671 150,772 1,470,957 548,056 (843,938) 12,477,518

Statement of financial position

as at March 31, 2024
(Un-audited)
Cash and bank balances 26,927,677 - 71,213,138 - - 98,140,815
Due from financial institutions - - 10,999,999 - - 10,999,999
Investments - net 150,000 8,819,245 635,914,676 1,915,447 2,139,893 648,939,261
Investment - credit loss allowance - - (419,932) (1,915,447) - (2,335,379)
Net inter segment lending 879,166,978 - - - (879,166,978) -
Financing - performing 115,055,922 452,459,394 - - 12,103,344 579,618,660
Financing - non-performing 4,530,586 4,817,582 - 13,668,895 171,656 23,188,719
Financing - credit loss allowance (3,601,097) (9,045,812) - (13,590,844) (256,327) (26,494,080)
Others 28,168,470 12,009,942 42,586,138 249,111 59,412,134 142,425,795
Total assets 1,050,398,536 469,060,351 760,294,019 327,162 (805,596,278) 1,474,483,790

Due to financial institutions 10,802,084 70,370,220 163,960,397 - - 245,132,701

Subordinated sukuk - - - - - -
Deposits and other accounts 985,725,201 63,461,060 - 454,269 - 1,049,640,530
Net inter segment borrowing - 334,145,449 591,723,514 (127,977) (925,740,986) -
Others 53,871,251 1,083,622 2,148,795 870 32,410,473 89,515,011
Total liabilities 1,050,398,536 469,060,351 757,832,706 327,162 (893,330,513) 1,384,288,242
Equity - - 2,461,313 - 87,734,235 90,195,548
Total equity and liabilities 1,050,398,536 469,060,351 760,294,019 327,162 (805,596,278) 1,474,483,790

Contingencies and commitments 45,167,548 80,481,050 210,662,086 1,828,926 1,769,224 339,908,834

2023
Retail CIBG Treasury SAM Others Total
---------------------------------------------------------------------------------------------------------------------- Rupees '000 -------------------------------------------------------------
Profit and loss account for the
quarter ended March 31, 2023
(Un-audited)
External funded revenue (9,203,756) 11,806,382 10,507,065 53,820 (123,477) 13,040,034
Inter segment revenue - net 19,743,442 (11,573,757) (10,390,020) (52,082) 2,272,417 -
External non-funded revenue 1,690,863 398,819 1,206,465 (220,867) (559,177) 2,516,103
Total income 12,230,549 631,444 1,323,510 (219,129) 1,589,763 15,556,137
Segment direct expenses 5,176,989 243,165 49,684 29,931 2,453,879 7,953,648
Inter segment expense allocation 2,207,967 166,432 54,096 25,384 (2,453,879) -
Total expenses 7,384,956 409,597 103,780 55,315 - 7,953,648
Credit loss allowance (66,269) (19,913) 1,385,343 69,315 (3,575) 1,364,901
Profit before tax 4,911,862 241,760 (165,613) (343,759) 1,593,338 6,237,588

Statement of financial position

as at December 31, 2023
(Audited)
Cash and bank balances 30,486,904 - 55,362,053 - - 85,848,957
Due from financial institutions - - - - - -
Investments 150,000 9,166,074 580,117,122 2,805,744 1,139,893 593,378,833
Investment provision - - (1,028,498) (2,805,744) - (3,834,242)
Net inter segment lending 846,815,880 - - - (846,815,880) -
Financing - performing 126,927,551 442,189,965 - - 8,584,421 577,701,937
Financing - non-performing 5,137,297 6,013,184 - 11,721,277 187,883 23,059,641
Financing - provisions (3,554,912) (4,720,383) - (11,644,505) (130,462) (20,050,262)
Others 21,892,608 12,862,528 35,499,058 227,367 43,487,125 113,968,686
Total assets 1,027,855,328 465,51 1,368 669,949,735 304,139 (793,547,020) 1,370,073,550

Due to financial institutions 11,110,677 75,277,296 80,498,830 - - 166,886,803

Subordinated sukuk - - - - - -
Deposits and other accounts 947,772,275 70,100,426 - 403,036 - 1,018,275,737
Net inter segment borrowing - 319,258,252 584,231,018 (99,779) (903,389,491) -
Others 68,972,376 875,394 1,870,858 882 22,993,139 94,712,649
Total liabilities 1,027,855,328 465,51 1,368 666,600,706 304,139 (880,396,352) 1,279,875,189
Equity - - 3,349,029 - 86,849,332 90,198,361
Total equity and liabilities 1,027,855,328 465,51 1,368 669,949,735 304,139 (793,547,020) 1,370,073,550

Contingencies and commitments 45,666,205 78,801,025 140,581,461 1,797,031 2,087,267 268,932,989

March 31, 2024 First Quarter 45

 39 RELATED PARTY TRANSACTIONS

46
The Bank has related party transactions with its parent, subsidiary, associates, employee benefit plans and its directors and key management personnel.

The Bank enters into transactions with related parties in the ordinary course of business and on substantially the same terms as for comparable transactions with
persons 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.

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

March 31, 2024 (Un-audited) December 31, 2023 (Audited)

Key Other Key Other
Parent Directors management Subsidiary Associates related Parent Directors management Subsidiary Associates related
personnel parties personnel parties

March 31, 2024

---------------------------------------------------------------------------------------------------------------------- Rupees '000 -----------------------------------------------------------------------------------------------------------------
Investments
Opening balance - - - 1,139,893 1,869,660 2,009,039 - - - 1,139,893 1,751,322 3,268,466
For the quarter ended March 31, 2024

Investment made during the year - - - 1,000,000 4,200,000 - - - - - 18,601,771 -

Investment redeemed / sold during the year - - - - (4,200,000) - - - - - (18,483,433) (1,259,427)
Closing balance - - - 2,139,893 1,869,660 2,009,039 - - - 1,139,893 1,869,660 2,009,039

Credit loss allowance for diminution in value of

investments - - - - - 1,396,155 - - - - - 1,951,094

Islamic financing and related assets - net

Opening balance - 54 652,579 - - 6,684,998 - 7 523,065 - - 1,392,371
Addition during the period / year - 288 26,928 - - 1,881,716 - 49 602,609 - - 16,958,966
Repaid during the period / year - - (32,924) - - (407,760) - (2) (473,095) - - (11,666,339)
Closing balance - 342 646,583 - - 8,158,954 - 54 652,579 - - 6,684,998

Credit loss allowance held against Islamic

financing and related assets - - - - - 407,688 - - - - - 407,688

Right-of-use assets
Opening balance - - - - - - - - - 16,138 - -
Additions during the period / year - - - - - - - - - - - -
Disposals during the period / year - - - - - - - - - (13,015) - -
Depreciation for the period / year - - - - - - - - - (3,123) - -
Closing balance - - - - - - - - - - - -
Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
 March 31, 2024 (Un-audited) December 31, 2023 (Audited)
Key Other Key Other
Parent Directors management Subsidiary Associates related Parent Directors management Subsidiary Associates related
personnel parties personnel parties

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

Other assets
Profit / return accrued - - 13,851 - - 99,634 - - 9,829 - - 152,624
Commission income receivable - - - 80,623 - - - - - - - -
Receivable from defined benefit plan - - - - - 247 - - - - - 90,806
Maintenance and other receivables - - - 8,536 - - - - - 11,773 - -
Acceptances - net - - - - - 6,217 - - - - - -
Rent receivable - - - 10,352 - - - - - - - -
Receivable from 1Link (Private) Limited - - - - - 2,743,837 - - - - - 2,320,075
- - 13,851 99,511 - 2,849,935 - - 9,829 11,773 - 2,563,505
For the quarter ended March 31, 2024

Deposits and other accounts

Opening balance 182 103,947 78,116 11,203 38,354,155 2,344,926 182 58,656 105,177 20,087 57,393 26,038,101
Received during the period / year - 66,177 723,666 7,898,565 439,266,698 21,974,915 - 232,893 1,623,827 27,819,887 983,701,499 49,904,615
Withdrawn during the period / year - (75,241) (709,827) (6,920,363) (416,346,140) (23,486,965) - (187,602) (1,650,888) (27,828,771) (945,404,737) (73,597,790)
Closing balance 182 94,883 91,955 989,405 61,274,713 832,876 182 103,947 78,116 11,203 38,354,155 2,344,926

Other liabilities
Profit / return payable - 1,066 656 15,109 505,531 13,045 - 931 326 109 684,274 24,669
Dividend payable 2,625,723 - - - - 965,960 4,923,232 - - - - 1,811,176
Payable to 1Link (Private) Limited - - - - - 799,394 - - - - - 595,002
Other payable - - - 28,250 - - - - - - - -
2,625,723 1,066 656 43,359 505,531 1,778,399 4,923,232 931 326 109 684,274 2,430,847

March 31, 2024

Contingencies and commitments
Trade related commitments - - - - - 380,963 - - - - - 330,829
- - - - - 380,963 - - - - - 330,829

First Quarter
39.1 Balances pertaining to parties that were related at the beginning of the period but ceased to be so related during any part of the current period are not reflected as
part of the closing balance. The same are accounted for through the movement presented above.

47
Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
48
RELATED PARTY TRANSACTIONS
March 31, 2024 (Un-audited) March 31, 2023 (Un-audited)
Key Other Key Other
Parent Directors management Subsidiary Associates related Parent Directors management Subsidiary Associates related
personnel parties personnel parties
---------------------------------------------------------------------------------------------------------------------- Rupees '000 -----------------------------------------------------------------------------------------------------------------

First Quarter
Income
Profit / return earned - - 5,939 - - 124,889 - - 8,430 - - 27,993
Fee and commission income - 46 26 137,386 752 2,451 - 28 35 57,792 7 1,499
Net gain / (loss) on sale of securities - - 106 - 4,541 239 - - 39 - (6,451) (4,730)
Maintenance income - - - 2,588 - - - - - 2,043 - -
Rent on property - - - 9,553 - - - - - 7,542 - -

March 31, 2024

Other income - - - 1,387 - - - - - 632 - -

Expense
For the quarter ended March 31, 2024

Profit / return expensed - 2,610 687 9,788 1,519,163 83,330 - 1,605 2,113 1,458 101 507,092
Director's fee and allowances - 43,040 - - - - - 40,640 - - - -
Compensation expense - - 621,300 - - 1,900 - - 351,975 - - 484
Fee and subscription - - - - - 312 - - - - - 2,211
Commission expense - - - 8,333 - - - - - 8,333 - -
Charge for defined benefit plan - - - - - 88,347 - - - - - 66,225
Contribution to defined contribution plan - - - - - 104,649 - - - - - 81,577

Others
Shares / units purchased during
the period - - - 10,000 36,279 - - - - - - 40,258
Shares / units sold during the period - - - - 36,881 - - - - - - 30,795
Government securities purchased
during the period - - 49,824 - - 334,734 - - 226,983 - - 1,460,842
Government securities sold during
the period - - 30,000 - - 48,700 - - 38,200 - - -
Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Un-audited Audited
March 31, December 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
40 CAPITAL ADEQUACY, LEVERAGE RATIO & LIQUIDITY REQUIREMENTS

Minimum capital requirement (MCR):

Paid-up capital (net of losses) 15,176,965 15,176,965

Capital adequacy ratio (CAR):

Eligible common equity tier 1 (CET 1) capital 77,777,921 72,868,421

Eligible additional tier 1 (ADT 1) capital - -
Total eligible tier 1 capital 77,777,921 72,868,421
Eligible tier 2 capital 13,339,581 14,309,769
Total eligible capital (tier 1 + tier 2) 91,117,502 87,178,190

Risk weighted assets (RWAs):

Credit risk 342,050,625 338,652,592

Market risk 42,991,453 55,101,145
Operational risk 105,584,800 105,584,800
Total 490,626,878 499,338,537

Common equity tier 1 capital adequacy ratio (in %) 15.85% 14.59%

Tier 1 Capital adequacy ratio (in %) 15.85% 14.59%

Total Capital adequacy ratio (in %) 18.57% 17.46%

The Bank has applied the transitional arrangement on Regulatory Capital. Had the transitional arrangement
not been applied then CAR would have been lower by 12 bps from 18.57% to 18.45%.

Leverage ratio (LR):

Eligible tier-1 capital 77,777,921 72,868,421

Total exposures 1,725,251,744 1,593,114,720
Leverage ratio (in %) 4.51% 4.57%

The Bank has applied the transitional arrangement on Regulatory Capital. Had the transitional arrangement
not been applied than Leverage Ratio would have been lower by 20 bps from 4.51% to 4.31%.

Liquidity coverage ratio (LCR):

Total high quality liquid assets 650,055,839 517,873,833

Total net cash outflow 397,192,440 339,165,609
Liquidity coverage ratio (Ratio) 1.637 1.527

Net stable funding ratio (NSFR):

Total available stable funding 862,790,463 837,268,976

Total required stable funding 492,357,178 481,779,578
Net stable funding ratio (in %) 175.24% 173.79%

March 31, 2024 First Quarter 49

Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

41 GENERAL

Comparative information has been re-classified, re-arranged or additionally incorporated in these condensed
interim unconsolidated financial statements, wherever necessary, to facilitate comparison and to conform with
changes in presentation in the current period. There have been no significant reclassifications during the
period.

42 NON-ADJUSTING EVENTS AFTER THE BALANCE SHEET DATE

The Board of Directors in its meeting held on April 25, 2024 has proposed an interim cash dividend of Rs.1 per
share (March 31, 2023: Nil). These interim condensed unconsolidated financial statements for the quarter
ended March 31, 2024 do not include the effect of these appropriations which will be accounted for
subsequent to the quarter end.

43 DATE OF AUTHORISATION FOR ISSUE

These condensed interim unconsolidated financial statements were authorised for issue on April 25, 2024 by
the Board of Directors of the Bank.

PRESIDENT & CEO CHIEF FINANCIAL OFFICER CHAIRMAN DIRECTOR DIRECTOR

50 First Quarter March 31, 2024

Directors’ Review
Consolidated Financial Statements

On behalf of the Board of Directors, we are pleased to present the Directors’ Review of Faysal
Bank Limited Group, along with unaudited condensed interim consolidated financial statements
for the quarter ended March 31, 2024.

Group Profile

Faysal Bank Ltd. (FBL) has 99.9% shareholding in Faysal Asset Management Limited (FAML).
FAML is an unlisted public limited company registered as a Non-Banking Finance Company
(NBFC), licensed to carry out asset management and investment advisory services under the
Non-Banking Finance Companies (Establishment & Regulations) Rules, 2003 and the Non-
Banking Finance Companies and Notified Entities Regulations, 2008.

Faysal Islami Currency Exchange Company (Private) Limited (FICECL) operates as a wholly
owned subsidiary of FBL. It was incorporated in Pakistan on Jan 16, 2024 under the
Companies Act, 2017. The registered office is situated at ST-02, Faysal House, Sharah-e-Faisal,
Karachi. The company received its “Certificate of Incorporation” from SECP on January 16,
2024 and obtained an operational license from SBP on March 26, 2024. The principal activities
of the Company are dealing in foreign exchange and facilitating remittances.

FBL Group structure is as follows:

Holding Company : Faysal Bank Limited
Subsidiary : Faysal Asset Management Limited
Faysal Islami Currency Exchange Company (Private) Limited

Furthermore, FBL also has significant influence in the following open-ended mutual funds
managed by FAML.
Associates

Faysal Islamic Pension Fund - Debt

Faysal Islamic Pension Fund - Equity
Faysal Halal Amdani Fund
Faysal Islamic Sovereign Fund - FISP-I
Faysal Islamic Pension Fund - Money Market
Faysal Islamic Savings Growth Fund
Faysal Islamic Special Income Fund - FISIP-I
Faysal Islamic Stock Fund
Faysal Pension Fund - Debt
Faysal Pension Fund - Equity
Faysal Pension Fund - Money Market
Faysal Savings Growth Fund
Faysal Special Savings Fund - FSSP-I
Faysal Islamic Financial Growth Fund - FIFGP-I
Faysal Islamic KPK Government Pension Fund - Money Market Sub Fund
Faysal Islamic KPK Government Pension Fund - Equity Sub Fund
Faysal Islamic KPK Government Pension Fund - Debt Sub Fund
Faysal Islamic KPK Government Pension Fund - Equity Index Sub Fund
Faysal Special Savings Fund - FSSP-II
Faysal Special Savings Fund - FSSP-III
Faysal Stock Fund

March 31, 2024 First Quarter 51

Financial Highlights:
Rs. in million
Key Balance Sheet Numbers March ‘24 December ‘23 Growth %
Investment 646,007 589,955 9.5
Financing 576,313 580,711 (0.8)
Total Assets 1,474,795 1,371,285 7.5
Deposits 1,048,652 1,018,265 3.0

Rs. in million
Profit & Loss Account March ‘24 March ‘23 Growth %
Total Revenue 23,687 15,765 50.3
Operating and other Expenses 11,038 8,032 37.4
Profit before tax and provisions 12,649 7,733 63.6
Net Provisions 37 1,364 (97.3)
Share of profit on associates 102 0.2 -
Profit before tax 12,714 6,369 99.6
Tax 6,105 3,062 99.4
Profit after tax 6,609 3,307 99.8

Earnings per share (Rupees) 4.35 2.18 99.5

In the first quarter of 2024, FBL maintained its upward trajectory, achieving remarkable financial
performance and recorded unprecedented growth despite challenges posed by the prevailing
economic conditions. On a consolidated basis, Profit Before Tax (PBT) increased by 100% to
PKR 12.7 billion. FBL achieved a Profit After Tax (PAT) of PKR 6.6 billion, double than PKR 3.3
billion in the corresponding quarter last year, with Earnings Per Share increasing from PKR 2.18
to PKR 4.35.

FAML continued to show improvement in performance and Assets Under Management (AUMs)
as of March 31, 2024, were PKR 159 billion. FAML made Profit After Tax of PKR 168 million
during the quarter under review registering a 77% growth over the same period last year. The
commendable financial performance of FAML underscores its resilience and effectiveness in
navigating current economic conditions.

Credit Rating

VIS Credit Rating Company Limited (VIS) and Pakistan Credit Rating Agency Limited (PACRA)
have re-affirmed the following entity ratings issued in 2023:

Long-Term AA
Short-Term A1+

Both the rating agencies assigned ‘Stable’ outlook to the bank.

52 First Quarter March 31, 2024

VIS has assigned Management Quality rating of AM2++ to FAML in 2023. The rating signifies
asset manager exhibiting very good management characteristics.

Holding Company

Ithmaar Bank B.S.C. (closed), a banking entity regulated by the Central Bank of Bahrain, is the
parent company directly and indirectly holding 66.78% (2023: 66.78%) of the Bank’s shares.
Ithmaar Bank B.S.C. (closed) is a wholly owned subsidiary of Ithmaar Holdings B.S.C. Dar Al-
Maal Al-Islami Trust (DMIT) is the holding entity of Ithmaar Holding B.S.C. and the ultimate
parent Company of the Bank. DMIT was formed by an indenture under the laws of the
Commonwealth of The Bahamas for the purpose of conducting business affairs in conformity
with Islamic law, principles, and traditions.

Dividend

The Board of Directors, in their meeting held on April 25, 2024 declared an interim cash
dividend of Rs. 1 per share (10%) for the quarter ended March 31, 2024.

Heartfelt Thanks: Acknowledging Our Pillars of Strength

On behalf of the Board and Management, we extend gratitude to our esteemed shareholders
for their unwavering support. We are indebted to our customers, who continued to trust us with
their business. We would like to place on record our appreciation for the Government of
Pakistan, the State Bank of Pakistan and the Securities and Exchange Commission of Pakistan
for their continued support and guidance and for developing and strengthening the banking
and financial services sector through continuous improvement in the regulatory and
governance framework.

As always, we would also like to express sincere appreciation for the Shariah Board. We would
also like to take this opportunity to recognize and commend the unwavering commitment and
exceptional efforts extended by our employees in driving the growth of Group. We extend our
heartfelt thanks to them for their relentless dedication and hard work.

Approval

In compliance with the requirement of the Companies Act, 2017, this Directors’ Review with the
recommendations of the Board Audit and Corporate Governance Committee has been
approved by the Directors in their meeting held on April 25, 2024 and signed by the Chief
Executive Officer and a director.

President & CEO Chairman

Karachi
Dated: April 25, 2024

March 31, 2024 First Quarter 53

 ‫ا‬ ‫ى‬ ‫۔ در‬ ‫‪AM2++‬‬ ‫ا ر‬ ‫‪FAML‬‬ ‫‪VIS‬‬
‫۔‬ ‫ہ ر‬ ‫ت‬ ‫ا ا‬

‫ر‬ ‫ادارہ ‪ ،‬ا اور وا‬ ‫ل آف‬ ‫۔ا ۔ ) زڈ(‪،‬‬ ‫ر‬ ‫ا‬
‫۔ا ۔‬ ‫اہادارہ ۔ا ر‬ ‫‪(66.78% 2023)66.78%‬‬
‫)ڈى ا آ (‬ ‫ذ ادارہ اوردا را لا‬ ‫۔ا ۔‬ ‫زڈ(‪،‬ا ر‬ ‫)‬
‫‪،‬‬ ‫ا‬ ‫آ ا‬ ‫س ا‬ ‫مدو‬ ‫ا ادارہ ۔ڈى ا آ‬ ‫ا‬
‫۔‬ ‫رو رى ا ر ا مد‬ ‫ںاورروا ت‬ ‫ا‬
‫ڈ‬
‫‪1‬رو‬ ‫ہ‬ ‫ہا ا س ‪ 31‬رچ‪2024‬‬ ‫رڈ ‪25‬ا ‪2024‬‬
‫۔‬ ‫رش‬ ‫ڈ‬ ‫ب)‪ (10%‬رى‬
‫دل‬ ‫ں‬
‫۔‬ ‫لا د‬ ‫ا ں‬ ‫ادا‬ ‫رز‬ ‫‪ ،‬اس‬ ‫رڈ اورا‬
‫رى ر ۔‬ ‫ا د‬ ‫ر ‪ ،‬ں ا رو راور‬ ‫دل‬ ‫ر‬ ‫ا‬
‫اُن‬ ‫وغ‬ ‫و‬ ‫اور‬ ‫ى ذر‬ ‫ورك‬ ‫ر ىاور ر‬
‫ناور ر ا ا‬ ‫آف‬ ‫ن‪ ،‬صا‬ ‫ا ر زاور‬ ‫وناورر‬
‫ار ۔‬ ‫آف ن‬
‫اوران‬ ‫ں‬ ‫ز‬ ‫ا‬ ‫ر اور وپ‬ ‫رڈ‬ ‫ح‪،‬‬
‫۔‬ ‫ا‬ ‫دل‬ ‫اور‬ ‫ا‬
‫رى‬
‫ڈا ز اس‬ ‫رش‬ ‫ر‬ ‫‪ ،‬رڈ آڈٹ اور ر ر‬ ‫ں‬ ‫ا ‪2017‬‬
‫آ اورڈا‬ ‫ا‬ ‫ر اوراس‬ ‫ا ا ا س‬ ‫ر رٹ ڈا ز ‪25‬ا ‪2024‬‬
‫۔‬ ‫د‬

‫راور اىاو‬
‫ا‬
‫‪2024‬‬ ‫ر ‪25:‬ا‬

‫‪54‬‬ ‫‪First Quarter‬‬ ‫‪March 31, 2024‬‬

 ‫‪%‬‬ ‫رچ ‪٢٠٢٣‬ء‬ ‫رچ‪٢٠٢٤‬ء‬ ‫اؤ‬
‫‪50.3‬‬ ‫‪15,765‬‬ ‫‪23,687‬‬

‫‪37.4‬‬ ‫‪8,032‬‬ ‫‪11,038‬‬ ‫اورد ا ا ت‬ ‫آ‬

‫‪63.6‬‬ ‫‪7,733‬‬ ‫‪12,649‬‬

‫)‪(97.3‬‬ ‫‪1,364‬‬ ‫‪37‬‬ ‫وو ن‬

‫‪-‬‬ ‫‪0.2‬‬ ‫‪102‬‬ ‫ا‬ ‫ا‬
‫‪99.6‬‬ ‫‪6,369‬‬ ‫‪12,714‬‬

‫‪99.4‬‬ ‫‪3,062‬‬ ‫‪6,105‬‬

‫‪99.8‬‬ ‫‪3,307‬‬ ‫‪6,609‬‬

‫‪99.5‬‬ ‫‪2.18‬‬ ‫‪4.35‬‬

‫ل‬ ‫اور‬ ‫رى ر اور ا ر‬ ‫و د‬ ‫دہ‬

‫)‪(PBT‬‬ ‫از‬ ‫دورا ن‪ 12.7‬رو‬ ‫دوں ‪،‬‬ ‫۔‬
‫ل ا‬ ‫)‪ (PAT‬ھ ‪ 6.6‬رو‬ ‫از‬ ‫و‬ ‫۔‬ ‫‪100%‬‬
‫۔‬ ‫‪4.35‬رو‬ ‫‪2.18‬رو‬ ‫ا‬ ‫۔‬ ‫دو‬ ‫ت ‪ 3.3‬رو‬

‫)‪(AUMs‬‬ ‫ى ر اور‪ 31‬رچ ‪ 2024‬اس ز ا ما‬ ‫ا ر د‬ ‫‪AML F‬‬

‫ل‬ ‫از‬ ‫دوران‪ 168‬رو‬ ‫۔ ‪FAML‬‬ ‫‪ 159‬و‬
‫ت‬ ‫دہ‬ ‫ر د‬ ‫رہ‬ ‫۔ ‪FAML‬‬ ‫‪77%‬ا‬
‫۔‬ ‫ا راور‬ ‫ر ہا‬

‫‪:‬‬ ‫ٹر‬
‫)‪(PACRA‬‬ ‫ا‬ ‫ٹر‬ ‫ن‬ ‫)‪(VIS‬اور‬ ‫‪ VIS‬ٹر‬
‫‪:‬‬ ‫ں دو رہ‬ ‫درج ذ در‬

‫‪AA‬‬ ‫ا‬

‫‪A1+‬‬ ‫ا‬

‫۔‬ ‫‘آؤٹ د‬ ‫ں ’‬ ‫در‬ ‫ں‬ ‫ا‬ ‫دو ںر‬

‫‪March 31, 2024‬‬ ‫‪First Quarter‬‬ ‫‪55‬‬

 ‫لآ‬
FISP-I ‫ورن‬ ‫ا‬
‫ر‬ - ‫ا‬
‫و‬ ‫ا‬
FISIP-I ‫ا‬ ‫ا‬ ‫ا‬
‫ا ك‬ ‫ا‬
‫ڈ‬-
‫ا‬-
‫ر‬ -
‫و‬
FSSP-I ‫ا‬
FIFGP-1 ‫و‬ ‫ا‬
‫ر‬ - ‫ ر‬KPK ‫ا‬
‫ا‬- ‫ ر‬KPK ‫ا‬
‫ڈ‬- ‫ ر‬KPK ‫ا‬
‫ا‬ ‫ا‬- ‫ ر‬KPK ‫ا‬
FSSP-II ‫ا‬
FSSP-III ‫ا‬
‫ا ك‬

% ‫ء‬٢٠٢٣ ‫د‬ ‫ء‬٢٠٢٤‫رچ‬

9.5 589,955 646,007

(0.8) 580,711 576,313

7.5 1,371,285 1,474,795 ‫ت‬ ‫ا‬

3 1,018,265 1,048,652

56 First Quarter March 31, 2024

 ‫ارے‬

‫رى‬ ‫آڈٹ ہ‬ ‫ہ‬ ‫‪ 31،‬رچ ‪2024‬‬ ‫رڈ آفڈا ز‬

‫۔‬ ‫ا ر ت‬ ‫ہ‬ ‫ز‬ ‫وپ ڈا‬ ‫اہ‬ ‫اروں ر رٹ‬

‫وپ و‬

‫ا دا ر ۔‬ ‫)‪99.9% (FAML‬‬ ‫ا‬ ‫)‪(FBL‬‬

‫ن‬ ‫ر ر ڈ ‪،‬‬ ‫)‪(NBFC‬‬ ‫ا ن‬ ‫‪FAML‬ا ان‬
‫ا ر‬ ‫اور‬ ‫(رو ‪ 2003،‬اور ن‬ ‫ا ر‬ ‫)ا‬
‫۔‬ ‫د‬ ‫ت ا مد‬ ‫رى ور‬ ‫ا ماور‬ ‫ا‬ ‫‪2008‬‬

‫ر م‬ ‫ذ‬ ‫( )‪(FICECL‬‬ ‫) ا‬ ‫ا‬ ‫ا‬

‫۔اس‬ ‫ا ‪2017‬‬ ‫‪ 16‬رى ‪2024‬‬ ‫۔‪ FICECL‬م ن‬
‫‪SECP‬‬ ‫‪ 16‬رى ‪2024‬‬ ‫۔‬ ‫وا‬ ‫رع ‪ ،‬ا‬ ‫ؤس‪،‬‬ ‫ر ڈآ ‪ST-02,‬‬
‫آف ن آ‬ ‫اور‪ 26‬رچ ‪ 2024‬ا‬ ‫آفا ر ر ‘‘‬ ‫ا ’’‬
‫۔‬ ‫ا‬ ‫د اور تزر‬ ‫دى ا رزر د‬ ‫۔‬

‫‪:‬‬ ‫وپ درج ذ‬ ‫ا‬ ‫ا‬

‫‪:‬‬

‫ا‬ ‫‪:‬‬ ‫ذ ادارہ‬

‫(‬ ‫) ا‬ ‫ا‬ ‫ا‬

‫۔‬ ‫ںا ور خ‬ ‫ز‘‘‬ ‫‪ FAML,‬ز ا م ر ذ ’’او ا‬

‫ا‬ ‫ا‬

‫‪-‬ڈ‬ ‫ا‬
‫‪-‬ا‬ ‫ا‬

‫‪March 31, 2024‬‬ ‫‪First Quarter‬‬ ‫‪57‬‬

Condensed Interim Consolidated Statement of Financial Position
As at March 31, 2024

Un-audited Audited
Note March 31, December 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
ASSETS

Cash and balances with treasury banks 10 94,746,256 84,036,564

Balances with other banks 11 3,397,185 1,812,507
Due from financial institutions 12 10,999,999 -
Investments 13 646,006,680 589,954,839
Islamic financing and related assets 14 576,313,299 580,711,316
Property and equipment 15 32,544,466 29,625,380
Right-of-use assets 16 10,550,392 10,771,515
Intangible assets 17 2,503,571 2,452,387
Deferred tax assets - -
Other assets 18 97,732,789 71,920,406
1,474,794,637 1,371,284,914

LIABILITIES

Bills payable 19 12,374,874 16,550,469

Due to financial institutions 20 245,132,701 166,886,803
Deposits and other accounts 21 1,048,651,817 1,018,264,979
Lease liabilities 22 12,870,818 12,865,125
Subordinated sukuk - -
Deferred tax liabilities 23 717,931 4,940,115
Other liabilities 24 64,027,575 60,852,160
1,383,775,716 1,280,359,651
NET ASSETS 91,018,921 90,925,263

REPRESENTED BY

Share capital 15,176,965 15,176,965

Reserves 16,257,001 15,616,188
Surplus on revaluation of assets - net 25 13,484,395 15,170,817
Unappropriated profit 46,100,292 44,961,035
Total equity attributable to the equity holders of the Bank 91,018,653 90,925,005
Non-controlling interest 268 258
91,018,921 90,925,263

CONTINGENCIES AND COMMITMENTS 26

The annexed notes 1 to 44 form an integral part of these condensed interim consolidated financial statements.

PRESIDENT & CEO CHIEF FINANCIAL OFFICER CHAIRMAN DIRECTOR DIRECTOR

58 First Quarter March 31, 2024

Condensed Interim Consolidated Profit and Loss Account (Un-audited)
For the quarter ended March 31, 2024

Quarter ended
Note March 31, March 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------

Profit / return earned 28 59,454,608 34,838,524

Profit / return expensed 29 40,744,062 21,797,063
Net profit / return 18,710,546 13,041,461

OTHER INCOME

Fee and commission income 30 3,000,836 2,140,147

Dividend income 70,572 60,517
Foreign exchange income 1,600,558 1,252,670
(Loss) / Income from derivatives (17,955) 93,098
Gain / (loss) on securities 31 227,238 (887,920)
Net gains / (loss) on derecognition of financial assets measured at amortised cost - -
Other income 32 94,575 64,891
Total other income 4,975,824 2,723,403

Total income 23,686,370 15,764,864

OTHER EXPENSES

Operating expenses 33 10,769,702 7,873,609

Workers welfare fund 264,278 157,628
Other charges 34 4,455 317
Total other expenses 11,038,435 8,031,554

Share of profit of associates 13.5 101,956 184

Profit before credit loss allowance 12,749,891 7,733,494
Credit loss allowance and write offs - net 35 36,079 1,364,901
Extra ordinary / unusual items - -
PROFIT BEFORE TAXATION 12,713,812 6,368,593

Taxation 36 6,104,500 3,061,885

PROFIT AFTER TAXATION 6,609,312 3,306,708

Attributable to:
Equity holders of the Bank 6,609,302 3,306,699
Non-controlling interest 10 9
6,609,312 3,306,708

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

Basic / diluted earnings per share 37 4.35 2.18

The annexed notes 1 to 44 form an integral part of these condensed interim consolidated financial statements.

PRESIDENT & CEO CHIEF FINANCIAL OFFICER CHAIRMAN DIRECTOR DIRECTOR

March 31, 2024 First Quarter 59

Condensed Interim Consolidated Statement of Comprehensive Income (Un-audited)
For the quarter ended March 31, 2024

Quarter ended
Note March 31, March 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------

Profit after taxation for the period 6,609,312 3,306,708

Other comprehensive income / (loss)

Items that may be reclassified to the profit and loss account in

subsequent periods:

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

FVOCI - net of tax (712,720) -

- Movement in (deficit) / surplus on revaluation of investments - net of tax - (1,412,997)

(712,720) (1,412,997)

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

- Movement in surplus / (deficit) on revaluation of equity investments - net of tax 225,247 -

Total comprehensive income 6,121,839 1,893,711

Attributable to:
Equity holders of the Bank 6,121,829 1,893,702
Non-controlling interest 10 9
6,121,839 1,893,711

The annexed notes 1 to 44 form an integral part of these condensed interim consolidated financial statements.

PRESIDENT & CEO CHIEF FINANCIAL OFFICER CHAIRMAN DIRECTOR DIRECTOR

60 First Quarter March 31, 2024

Condensed Interim Consolidated Statement of Changes In Equity
For the quarter ended March 31, 2024

Reserves Surplus / (deficit)

Capital reserves on revaluation of
Non-distri-
butable Reserve Non-
Share Fixed assets Unappropriated
capital Statutory controlling Total
capital Share reserve arising on reserve Total / profit
Investments non-banking Total interest
premium (NCR) - gain amal-
on bargain gamation assets
purchase

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

Balance as at January 1, 2023 (Audited) 15,176,965 10,131 257,269 23,952 11,384,616 11,675,968 (1,824,764) 12,494,426 10,669,662 33,091,551 57 70,614,203
Profit after taxation for the quarter ended
March 31, 2023 - - - - - - - - - 3,306,699 9 3,306,708
Other comprehensive income - net of tax
Movement in (deficit) / surplus on revaluation
of investments - net of tax - - - - - - (1,412,997) - (1,412,997) - - (1,412,997)
Total other comprehensive income - net of tax - - - - - - (1,412,997) - (1,412,997) - - (1,412,997)
Transfer to statutory reserve - - - - 642,231 642,231 - - - (642,231) - -
Transfer from surplus on revaluation of fixed
assets to unappropriated profit - net of tax - - - - - - - (40,127) (40,127) 40,127 - -
Amortisation of intangible assets - customer
relationship - net of tax - - (11,704) - - (11,704) - - - - - (11,704)
Transaction with owners, recorded directly in equity
Final cash dividend declared on February 23, 2023
at Re 1 per share - - - - - - - - - (1,517,697) - (1,517,697)
Balance as at March 31, 2023 (Un-audited) 15,176,965 10,131 245,565 23,952 12,026,847 12,306,495 (3,237,761) 12,454,299 9,216,538 34,278,449 66 70,978,513
Profit after taxation for the period from
April 1, 2023 to December 31, 2023 - - - - - - - - - 16,939,774 192 16,939,966
Other comprehensive income - net of tax
Movement in (deficit) / surplus on revaluation
of investments - net of tax - - - - - - 6,586,790 - 6,586,790 - - 6,586,790
Remeasurement gain / (loss) on defined benefit
obligations - net of tax - - - - - - - - - 41,660 - 41,660
Movement in surplus on revaluation of property and
equipment - net of tax - - - - - - - (137,366) (137,366) - - (137,366)
Movement in surplus on revaluation of non-banking
assets - net of tax - - - - - - - (391,642) (391,642) - - (391,642)
Total other comprehensive income - net of tax - - - - - - 6,586,790 (529,008) 6,057,782 41,660 - 6,099,442
Transfer to statutory reserve - - - - 3,366,957 3,366,957 - - - (3,366,957) - -
Transfer from surplus on revaluation of fixed
assets to unappropriated profit - net of tax - - - - - - - (103,503) (103,503) 103,503 - -
Amortisation of intangible assets - customer
relationship - net of tax - - (57,264) - - (57,264) - - - - - (57,264)
Transaction with owners recorded directly
in equity
1st Interim cash dividend declared on August 24, 2023
at Re 1 per share - - - - - - - - - (1,517,697) - (1,517,697)
2nd Interim cash dividend declared on October 26, 2023
at Rs 1 per share - - - - - - - - - (1,517,697) - (1,517,697)
Balance as at December 31, 2023 (Audited) 15,176,965 10,131 188,301 23,952 15,393,804 15,616,188 3,349,029 11,821,788 15,170,817 44,961,035 258 90,925,263
Impact of adopting IFRS 9 as at January 1, 2024 - net of tax - - - - - - (961,742) - (961,742) (2,020,573) - (2,982,315)
Restated balance as at January 1 , 2024 15,176,965 10,131 188,301 23,952 15,393,804 15,616,188 2,387,287 11,821,788 14,209,075 42,940,462 258 87,942,948
Profit after taxation for the quarter ended March 31, 2024 - - - - - - - - - 6,609,302 10 6,609,312
Other comprehensive income - net of tax
Movement in surplus / (deficit) on revaluation of equity
investments through FVOCI - net of tax - - - - - - 225,247 - 225,247 - - 225,247
Movement in surplus / (deficit) on revaluation of debt
investments through FVOCI - net of tax - - - - - - (712,720) - (712,720) - - (712,720)
Total other comprehensive income - net of tax - - - - - - (487,473) - (487,473) - - (487,473)
Gain on sale of equity instruments classified
as FVOCI - net of tax - - - - - - (201,273) - (201,273) 201,273 - -
Transfer to statutory reserve - - - - 651,285 651,285 - - - (651,285) - -
Transfer from surplus on revaluation of fixed
assets to unappropriated profit - net of tax - - - - - - - (35,934) (35,934) 35,934 - -
Amortisation of intangible assets - customer
relationship - net of tax - - (10,472) - - (10,472) - - - - - (10,472)
Transaction with owners, recorded directly in equity
Final cash dividend declared on February 23, 2024
at Rs 2 per share - - - - - - - - - (3,035,394) - (3,035,394)
Balance as at March 31, 2024 (Un-audited) 15,176,965 10,131 177,829 23,952 16,045,089 16,257,001 1,698,541 11,785,854 13,484,395 46,100,292 268 91,018,921

The annexed notes 1 to 44 form an integral part of these condensed interim consolidated financial statements.

PRESIDENT & CEO CHIEF FINANCIAL OFFICER CHAIRMAN DIRECTOR DIRECTOR

March 31, 2024 First Quarter 61

Condensed Interim Consolidated Cash Flow Statement (Un-audited)
For the quarter ended March 31, 2024

Note March 31, March 31,

2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------

CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation 12,713,812 6,368,593
Less: dividend income (70,572) (60,517)
Less: share of profit of associates (101,956) (184)
12,541,284 6,307,892
Adjustments:
Net profit / return income (18,710,546) (13,041,461)
Depreciation on owned property and equipment 33 637,538 445,648
Depreciation on right-of-use assets 33 485,781 444,049
Amortisation of intangible assets 33 95,717 70,289
Depreciation on non-banking assets 33 786 1,686
Workers welfare fund 264,278 157,628
Credit loss allowance against due from financial institutions 35 1 -
Credit loss allowance against financing - net 35 108,906 59,480
Credit loss allowance for diminution in value of investments - net 35 (109,713) 1,382,930
Credit loss allowance against other assets - net 35 650 -
Credit loss allowance against off balance sheet obligations - net 35 105,619 650
Unrealised gain - FVTPL - net 31 (206,884) (864)
Gain on sale of Property and equipment - net 32 (4,770) (8,389)
Gain on termination of leases (IFRS 16) 32 (19,563) -
Charge for defined benefit plan 88,347 66,225
(Income) / loss from derivative contracts - net 17,955 (93,098)
Bad debts written off directly 35 4,503 5,328
(17,241,395) (10,509,899)
(4,700,111) (4,202,007)
(Increase) / decrease in operating assets
Due from financial institutions (10,999,999) 8,315,098
Securities classified as FVTPL (2,642,290) 3,975
Financing 4,284,608 (34,501,617)
Others assets (excluding advance taxation) (1,813,277) (12,203,505)
(11,170,958) (38,386,049)
Increase / (decrease) in operating liabilities
Bills Payable (4,175,595) (7,553,024)
Due to financial institutions 79,089,834 40,275,668
Deposits 30,386,838 18,223,409
Other liabilities (excluding current taxation) (1,067,093) 7,119,766
104,233,984 58,065,819
Income tax paid (8,751,837) (3,919,617)
Net profit / return received 36,349,051 22,141,683
Net profit / return paid (37,683,109) (21,102,845)
Contribution to gratuity fund (88,347) (53,986)
Net cash used in operating activities 78,188,673 12,542,998

CASH FLOWS FROM INVESTING ACTIVITIES

Net divestment in amortized cost securities 1,921 (889,711)
Net investment in securities classified as FVOCI (54,537,133) (2,082,474)
Net Investment in associates 18,795 1,637,772
Dividends received 56,110 54,397
Investment in property and equipment (3,592,234) (1,474,425)
Investment in intangible assets (256,441) (61,335)
Disposal of property and equipment 42 9,015
Net cash used in from investing activities (58,308,940) (2,806,761)

CASH FLOWS FROM FINANCING ACTIVITIES

Payment of lease liability against right-of-use assets (627,441) (335,638)
Dividend paid (6,113,986) (3,696)
Net cash used in financing activities (6,741,427) (339,334)

Increase in cash and cash equivalents during the period 13,138,306 9,396,903
Cash and cash equivalents at the beginning of the period 83,720,662 57,253,535
Cash and cash equivalents at the end of the period 96,858,968 66,650,438

The annexed notes 1 to 44 form an integral part of these condensed interim consolidated financial statements.

PRESIDENT & CEO CHIEF FINANCIAL OFFICER CHAIRMAN DIRECTOR DIRECTOR

62 First Quarter March 31, 2024

Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

1 STATUS AND NATURE OF BUSINESS

1.1 The "Group" consists of:

(i) Faysal Bank Limited - Holding Company

(ii) Faysal Asset Management Limited - Subsidiary Company

(iii) Faysal Islami Currency Exchange Company (Private) Limited - Subsidiary Company

1.1.1 Holding Company - Faysal Bank Limited

Faysal Bank Limited (the Bank or the Holding Company) was incorporated in Pakistan on October 3, 1994 as
a public limited company under the provisions of the repealed Companies Ordinance, 1984 (now the
Companies Act, 2017). Its shares are listed on the Pakistan Stock Exchange Limited. The Group is engaged in
Shariah compliant modern Corporate, Commercial and Consumer banking activities. The Group is operating
through 722 branches (December 31, 2023: 722 branches) including 2 sub-branches (December 31, 2023: 2
sub-branches).

The Registered Office of the Bank is located at Faysal House, ST-02, Shahra-e-Faisal, Karachi.

Ithmaar Bank B.S.C (closed), a fully owned subsidiary of Ithmaar Holdings B.S.C is the parent company of the
Bank, holding directly and indirectly 66.78% (December 31, 2023: 66.78%) of the shareholding of the Bank.
Dar Al-Maal Al-Islami Trust (DMIT), (ultimate parent of the Bank) is the holding company of Ithmaar Holdings
B.S.C.

The Pakistan Credit Rating Agency Limited (PACRA) and VIS Credit Rating Company Limited have determined
the Bank's long-term rating as 'AA' (December 31, 2023: 'AA') and the short term rating as 'A1+' (December
31, 2023: 'A1+') on June 23, 2023 and June 27, 2023 respectively.

1.1.2 Subsidiary Company - Faysal Islami Currency Exchange Company (Private) Limited

During the year, the Group established a wholly owned subsidiary, Faysal Islami Currency Exchange
Company (Private) Limited (FICEC). FICEC is a private limited company, incorporated in Pakistan with the
objective of dealing in foreign exchange and facilitating remittances. The registered office of FICEC is at ST-
02, Faysal House, Sharah-e-Faisal, Karachi.

1.1.3 Subsidiary Company - Faysal Asset Management Limited

Percentage of holding
March 31, December 31,
2024 2023

Faysal Asset Management Limited - Subsidiary 99.99% 99.99%

Faysal Asset Management Limited (the Subsidiary Company) was incorporated in Pakistan under the
provisions of the repealed Companies Ordinance, 1984 (now Companies Act, 2017) on August 6, 2003 as an
unlisted public limited company. The Subsidiary Company commenced its operations on November 14, 2003.
The registered office of the Subsidiary Company is located at 7th Floor, West Wing, Faysal House, ST-02,
Shahra-e-Faisal, Karachi.

The Subsidiary Company is a Non-Banking Finance Company (NBFC), licensed to carry out asset
management and investment advisory services under the Non-Banking Finance Companies (Establishment
and Regulation) Rules, 2003 and the Non-Banking Finance Companies and Notified Entities Regulations, 2008
(NBFC Regulations).

VIS Credit Rating Company Limited has assigned Asset Management rating of AM2+ to the Subsidiary
Company.

2 BASIS OF PRESENTATION

2.1 The Group provides financing mainly through Murabaha, Musawammah, Istisna and other Islamic modes as
briefly explained in note 6.5 to in the annual audited consolidated financial statements for the year ended
December 31, 2023.

March 31, 2024 First Quarter 63

Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

The purchases and sales arising under these arrangements are not reflected in these consolidated financial
statements as such but are restricted to the amount of facility actually utilized 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 Shariah Board of the Group.

3 BASIS OF CONSOLIDATION

The consolidated financial statements incorporate the financial statements of the Bank and the financial
statements of the Subsidiary Company from the date from which control of the Subsidiary Company by the
Group commences until the date on which control ceases. The financial statements of the Subsidiary
Company are incorporated on a line-by-line basis and the investment held by the Bank is eliminated against
the corresponding share capital and pre-acquisition reserve of the Subsidiary Company in the consolidated
financial statements.

The financial statements of the Subsidiary Company are prepared for the same reporting period as the
Holding Company, using accounting policies that are generally consistent with those of the Holding Company.

Material intra-group balances and transactions are eliminated

Associates are those entities in which the Group has significant influence, but not control, over the financial
and operating policies. Joint ventures are those entities over whose activities the Group has joint control
established by contractual agreement. Associates and joint ventures are accounted for using the equity
method.

4 STATEMENT OF COMPLIANCE

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

- International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International
Accounting Standards Board (IASB) as notified under the Companies Act, 2017;

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

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

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

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

4.2 As per the directive of the SBP through its letter BPRD (R&P-02)/625-99/2011/3744 dated March 28, 2011,
gain arising on bargain purchase of Pakistan operations of Royal Bank of Scotland (ex-RBS Pakistan) was
credited directly into equity as Non-distributable Capital Reserve (NCR). The SBP allowed the Group to adjust
the amortisation of intangible assets against the portion of reserve which arose on account of such assets
identified as a result of such acquisition. Accordingly, during the period ended March 31, 2024, the Group has
adjusted amortisation of intangible assets net of tax amounting to Rs. 10.471 million (period ended March 31,
2023: Rs. 11.704 million) from the NCR.

4.3 These condensed interim consolidated financial statements do not include all the information and disclosures
required in the annual audited consolidated financial statements, and are limited based on the format
prescribed by the State Bank of Pakistan through BPRD Circular Letter No. 2 of 2023 dated February 9, 2023
and IAS 34 and should be read in conjunction with the annual consolidated financial statements for the
financial year ended December 31, 2023.

64 First Quarter March 31, 2024

Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

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

4.4.1 There are certain new and amended standards, interpretations and amendments that are mandatory for the
Group's accounting periods beginning on January 1, 2024 but are considered not to be relevant or do not
have any significant effect on the Group's operations to be updated except for the implementation of IFRS 9:
‘Financial Instruments’ as detailed in note 5.1.

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

4.5.1 The following revised standards, amendments and interpretations with respect to the accounting and reporting
standards would be effective from the dates mentioned below against the respective standards, amendments
or interpretations:

Effective date (annual periods

Standards, interpretations or amendments beginning on or after)

- Amendments to IAS 21- Lack of Exchangeability January 1, 2025

The above amendments are not expected to have any material impact on the condensed interim consolidated
financial statements of the Group.

4.5.2 As required under SBP Letter No. BPRD/LD-01/850/28853/2022-13054, the details of the net conventional
funded portfolio as at March 31, 2024 are as follows:

----------------------------------------------------------------------------------------------------------------------
Note Rupees '000 ----------------
Assets
Investments 3,002,468
Financing - net 822,930

Liabilities
Due to financial institutions 442
Deposits and other accounts 3,484,624
Other Liabilities 27.1 1,394,420

All efforts are being put in to convert or dispose-off the residual portfolio and appropriate monitoring
mechanisms are in place. Quarterly progress report on the status of the residual portfolio is shared with the
Bank’s Board of Directors, the Shariah Board and the State Bank of Pakistan.

5 MATERIAL ACCOUNTING POLICY INFORMATION

The material accounting policies applied in preparation of these condensed interim consolidated financial
statements are the same as applied in the preparation of annual consolidated financial statements of the
Group for the year ended December 31, 2023 except for the following:

5.1 Impact of IFRS 9: 'Financial Instruments'

During the period, as directed by the SBP vide its BPRD Circular No. 07 of 2023 dated April 13, 2023, IFRS 9:
‘Financial Instruments' became applicable to the Bank. IFRS 9 replaces the existing guidance in IAS 39
Financial Instruments: Recognition and Measurement. The standard addresses recognition, classification,
measurement and derecognition of financial assets and financial liabilities. The standard has also introduced a
new impairment model for financial assets which requires recognition of impairment charge based on
‘expected credit losses' (ECL) approach rather than ‘incurred credit losses' approach as previously followed.
The ECL has impact on all the assets of the Group which are exposed to credit risk.

The Group has adopted IFRS 9 from January 1, 2024, using the modified retrospective approach and has not
restated comparatives for the 2023 reporting period, as permitted under the specific transitional provisions in
the standard.

March 31, 2024 First Quarter 65

Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

IFRS 9 brings fundamental changes to the accounting for financial assets and to certain aspects of the
accounting for financial liabilities:

Classification and measurement

Under the new standard, classification and measurement of financial assets depends on how these are
managed based on business model and their contractual cash flow characteristics. Financial assets that do
not meet the Solely Payment of Principal and Interest (SPPI) criteria are required to be measured at fair value
through profit or loss regardless of the business model in which they are held.

Financial liabilities are either classified as fair value through profit or loss (FVTPL), when they are held for
trading purposes, or at amortised cost. Financial liabilities classified as FVTPL are measured at fair value.
Financial liabilities classified at amortised cost are initially recorded at fair value and subsequently measured
using the effective interest rate method.

Equity Securities

Quoted equity shares amounting to Rs. 3,049.251 million have been classified as FVTPL. Gains and losses on
disposal of securities classified as FVTPL will be recycled through the profit and loss account.

The Holding Company has elected to designate equity shares of Rs. 3,929.093 million as fair value through
other comprehensive income (FVOCI) as permitted under IFRS 9. These securities were previously classified
as available-for-sale (AFS). The changes in fair value of such securities will no longer be reclassified to profit
or loss when they are disposed off.

Unquoted equity shares are also required to be measured at fair value under IFRS 9. The fair value of these
securities are determined as per adjusted net asset method valuation as these securities are neither listed nor
market prices are available. Fair value gains or losses has been recognized directly in equity through OCI.

Debt securities and Islamic financing and related assets

Debt securities currently classified as AFS and passing the SPPI test are measured at FVOCI under IFRS 9 as
the Group’s business model is to hold these assets to collect contractual cash flows and sell the investments.

Debt securities currently classified as held-to-maturity (HTM) and passing the SPPI test are measured at
amortized cost under IFRS 9 as the Group’s business model is to hold these assets to collect contractual cash
flows.

Debt securities that do not pass the SPPI test are measured at FVTPL.

Impairment

The impairment requirements apply to financial assets measured at amortized cost and FVOCI (other than
equity instruments), lease receivables, and certain financing commitments and financial guarantee contracts.
At initial recognition, an impairment allowance (or provision in the case of commitments and guarantees) is
required for expected credit losses (‘ECL’) resulting from default events that are possible within the next 12
months (‘12-month ECL’). In the event of a significant increase in credit risk, a provision is required for ECL
resulting from all possible default events over the expected life of the financial instrument (‘lifetime ECL’).

Financial assets where 12-month ECL is recognized are in ‘Stage 1'; financial assets that are considered to
have experienced a significant increase in credit risk are in ‘Stage 2'; and financial assets for which there is
objective evidence of impairment, so are considered to be in default or otherwise credit impaired, are in ‘Stage
3'. Under the SBP’s instructions, the Group is not required to compute ECL on Government Securities and on
Government guaranteed credit exposure in local currency.

Based on the requirements of IFRS 9 and SBP's IFRS 9 application instructions, the Group has performed an
ECL assessment considering the following key elements:

- PD: The probability that a counterparty will default over the next 12 months from the reporting date (12-
month ECL, Stage1) or over the lifetime of the product (lifetime ECL, Stage 2).

- EAD: The expected balance sheet exposure at the time of default, incorporating expectations on
drawdowns, amortization, pre-payments and forward-looking information where relevant.

66 First Quarter March 31, 2024

Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

- LGD: An estimate of the loss incurred on a facility upon default by a customer. LGD is calculated as
the difference between contractual cash flows due and those that the Group expects to receive,
including from the liquidation of any form of collateral. It is expressed as a percentage of the exposure
outstanding on the date of classification of an obligor.

Significant increase in credit risk (SICR)

A SICR is assessed in the context of an increase in the risk of a default occurring over the life of the financial
instrument when compared to that expected at the time of initial recognition. It is not assessed in the context
of an increase in the ECL. The Group used several qualitative and quantitative measures in assessing SICR.
Quantitative measures relate to deterioration of Obligor Risk Ratings (ORR) or where principal and / or profit
payments are 60 days or more past due. Qualitative factors include unavailability of financial information and
pending litigations.

The effect of this change in accounting policy is as follows:

Impact on the condensed interim consolidated statement of financial position:

March 31, January 1,

2024 2024
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------

- Decrease in due from financial institutions (1) -

- Increase in investments 107,792 607,934
- Decrease in islamic financing and related assets (251,005) (6,398,593)
- Decrease in other assets (3,283) (3,657)
Decrease in total assets - net (146,497) (5,794,316)
- Decrease in deferred tax liabilities (95,253) (2,865,357)
- Increase in other liabilities 47,897 53,356
Decrease in total liabilities - net (47,356) (2,812,001)
Decrease in net assets (99,141) (2,982,315)

Impact on the condensed interim consolidated statement of changes in equity:

Decrease in surplus on revaluation of assets - net of tax - (961,742)

Decrease in unappropriated profit 201,273 (2,020,573)

For the three

months ended
March 31,
2024
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ----------------
Impact on condensed interim consolidated profit and loss account:

Decrease in gain on securities (394,654)

Increase in credit loss allowance and write offs - net (194,394)
Decrease in profit before taxation (589,048)
Decrease in taxation 288,634
Decrease in profit after taxation (300,414)

-------- Rupee --------

Decrease in EPS (0.20)

March 31, 2024 First Quarter 67

Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

5.2 Revised format of condensed interim financial statements

The State Bank of Pakistan (SBP) through its BPRD Circular No. 02 dated February 9, 2023 and BPRD Circular
Letter No. 07 of 2023 dated April 13, 2023 has amended the format of quarterly and half yearly financial
statements of banks. All banks are directed to prepare their quarterly and half yearly financial statements on
the revised format effective from accounting year starting from January 1, 2024. Accordingly, the Group has
prepared these condensed interim consolidated financial statements on the new format prescribed by the
SBP.

The adoption of revised format has resulted in following significant changes:

- Right-of-use-assets (note 16) amounting to Rs 10,550.392 million (December 31, 2023: Rs 10,771.515
million) which were previously shown as part of fixed assets are now shown separately on the
consolidated statement of financial position.

- Lease liabilities (note 22) amounting to Rs 12,870.818 million (December 31, 2023: Rs 12,865.125
million) which were previously shown as part of other liabilities (note 24) are now shown separately on
the consolidated statement of financial position.

6 BASIS OF MEASUREMENT

These condensed interim consolidated financial statements have been prepared under the historical cost
convention except for certain fixed assets and non-banking assets acquired in satisfaction of claims which
have been carried at revalued amounts, certain investments and derivative contracts which have been
marked to market and are carried at fair value, obligations in respect of staff retirement benefits and lease
liabilities which have been carried at present value and right-of-use assets which are initially measured at an
amount equal to the corresponding lease liabilities (adjusted for any lease payments and costs) and
depreciated over the respective lease terms.

7 FUNCTIONAL AND PRESENTATION CURRENCY

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

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

8 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

The basis for accounting estimates adopted in the preparation of these condensed interim consolidated
financial statements is the same as that applied in the preparation of the consolidated financial statements of
the Group for the year ended December 31, 2023 except for measurement of the expected credit loss
allowance and fair value of unlisted equity securities.

9 FINANCIAL RISK MANAGEMENT

The financial risk management objectives and policies adopted by the Group are consistent with those
disclosed in the annual audited consolidated financial statements for the year ended December 31, 2023.

68 First Quarter March 31, 2024

Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Un-audited Audited
March 31, December 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
10 CASH AND BALANCES WITH TREASURY BANKS
In hand
- local currency 20,424,052 18,287,512
- foreign currencies 1,747,887 1,716,544
22,171,939 20,004,056
With State Bank of Pakistan in
- local currency current accounts 61,610,876 47,120,181
- foreign currency current accounts 2,647,447 2,684,723
- foreign currency deposit accounts 4,132,144 4,323,955
68,390,467 54,128,859
With National Bank of Pakistan in
- local currency current accounts 4,182,319 9,902,199

Prize bonds 1,530 1,450

Less: Credit loss allowance

Cash and balances with treasury banks - net of credit loss allowance 94,746,256 84,036,564

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

Un-audited Audited
Note March 31, December 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
11 BALANCES WITH OTHER BANKS

In Pakistan
- in current accounts
- in saving accounts 165,854 10,251
2,549 96
Outside Pakistan 168,403 10,347
- in current account
- in deposit account 3,228,782 1,802,160
- -
3,228,782 1,802,160
Less: Credit loss allowance

Balances with other banks - net of credit loss allowance 3,397,185 1,812,507

12 DUE FROM FINANCIAL INSTITUTIONS

Musharka Placements 11,000,000 -

Less: Credit loss allowance 12.1 (1) -

Due from financial institutions - net of credit loss allowance 10,999,999 -

March 31, 2024 First Quarter 69

 Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

12.1 Due from financial institutions - Particulars of Credit Loss Allowance

Un-audited Audited
March 31, 2024 December 31, 2023
Due from Credit loss Due from Credit loss
financial allowance financial allowance
institutions held institutions held
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------------------
Domestic
Performing Stage 1 11,000,000 1 - -

Un-audited
13 INVESTMENTS Note March 31, 2024
Cost /
Credit loss Surplus / Carrying
13.1 Investments by type: amortised
allowance (deficit) value
cost
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------------------
FVTPL
Shares 3,054,584 - 206,884 3,261,468
3,054,584 - 206,884 3,261,468
FVOCI
Federal Government securities 579,813,898 (254,948) 541,509 580,100,459
Shares 2,780,160 - 315,745 3,095,905
Non Government debt securities 47,570,934 (672,951) 2,382,609 49,280,592
630,164,992 (927,899) 3,239,863 632,476,956
Amortised Cost
Non Government debt securities 8,173,043 (1,407,480) - 6,765,563
8,173,043 (1,407,480) - 6,765,563

Associates * 13.5 3,502,693 - - 3,502,693

Total Investments 644,895,312 (2,335,379) 3,446,747 646,006,680

* related parties
Audited
December 31, 2023
Cost / Provision Surplus / Carrying
amortised for
(deficit) value
cost diminiution
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------------------
Held-for-trading securities
Shares 3 - - 3
3 - - 3
Available-for-sale securities
Federal Government securities 522,195,325 - 1,949,879 524,145,204
Shares 5,514,707 (1,905,557) 2,245,115 5,854,265
Non Government debt securities 47,917,827 (519,291) 2,371,729 49,770,265
575,627,859 (2,424,848) 6,566,723 579,769,734
Held-to-maturity securities
Non Government debt securities 8,174,964 (1,409,394) - 6,765,570

Associates * 13.5 3,419,532 - - 3,419,532

Total Investments 587,222,358 (3,834,242) 6,566,723 589,954,839

* related parties

70 First Quarter March 31, 2024

 Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Un-audited Audited
March 31, December 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
13.2 Investments given as collateral - at market value

Federal Governament Securities

- Ijarah Sukuk 147,967,500 73,587,500

13.3 Credit loss allowance for diminution in value of investments

Opening balance 3,834,242 3,284,350

Impact of adopting IFRS 9 as at January 1, 2024 (1,398,657) -
Restated balance as at January 1 , 2024 2,435,585 3,284,350

Charge / reversals
Charge for the period / year - 1,811,871
Reversals for the period / year (109,713) (58,113)
Reversals on disposals - (1,203,866)
(109,713) 549,892
Transfers - net - -
Amounts written off - -

Closing Balance 2,325,872 3,834,242

13.4 Particulars of credit loss allowance against debt securities

Un-audited Audited
March 31, 2024 December 31, 2023
Outstanding Credit loss Non-
performing Provision
amount allowance investments
---------------------------------------------------------------------------------------------------------------- Rupees '000 ---------------------------------------------------
Domestic
Performing Stage 1 628,704,126 1,346 - -
Underperforming Stage 2 4,926,985 397,762 - -
Non-performing Stage 3
- Substandard - - - -
- Doubtful - - - -
- Loss 1,926,764 1,926,764 (1,928,685) (1,928,685)

Total 635,557,875 2,325,872 (1,928,685) (1,928,685)

March 31, 2024 First Quarter 71

Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

13.5 Movement of investment in associates

March 31, 2024 - Unaudited

Investment Investment /
Share of Investment
Country of % at the (redemption) Dividend
profit / at the end
incorporation Holding beginning during the received
(loss) of the year
of the period period

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

Associates
Faysal Islamic Pension Fund - Debt Pakistan 61.10 40,178 - 1,634 - 41,812
Faysal Islamic Pension Fund - Equity Pakistan 91.33 43,254 - 1,635 - 44,889
Faysal Halal Amdani Fund Pakistan 2.54 1,560,101 (6,842) 16,417 - 1,569,676
Faysal Islamic Sovereign Fund - FISP-I Pakistan 7.77 3,046 638,230 15,237 (7,049) 649,464
Faysal Islamic Pension Fund - Money Market Pakistan 19.84 40,893 - 1,645 - 42,538
Faysal Islamic Savings Growth Fund Pakistan 21.16 1,289,001 (716,866) 38,961 - 611,096
Faysal Islamic Special Income Fund - FISIP-I Pakistan 62.15 1,702 69,132 2,623 - 73,457
Faysal Islamic Stock Fund Pakistan 44.73 125,253 (10,744) 13,710 - 128,219
Faysal Pension Fund - Debt Pakistan 87.72 39,562 - 1,395 - 40,957
Faysal Pension Fund - Equity Pakistan 89.89 42,204 - 1,364 - 43,568
Faysal Pension Fund - Money Market Pakistan 71.33 39,972 - 1,840 - 41,812
Faysal Savings Growth Fund Pakistan 0.00 - - - - -
Faysal Special Savings Fund - FSSP-I Pakistan 98.72 13,170 - 493 - 13,663
Faysal Islamic Financial Growth Fund - FIFGP-I Pakistan 3.50 114,230 15,530 2,653 - 132,413
Faysal Islamic KPK Government Pension Fund - Money Market Sub Fund Pakistan 99.39 30,201 - 1,258 - 31,459
Faysal Islamic KPK Government Pension Fund - Equity Sub Fund Pakistan 100.00 503 - 23 - 526
Faysal Islamic KPK Government Pension Fund - Debt Sub Fund Pakistan 100.00 503 - 24 - 527
Faysal Islamic KPK Government Pension Fund – Equity Index Sub Fund Pakistan 100.00 503 - 24 - 527
Faysal Special Savings Fund - FSSP-II Pakistan 97.66 12,672 1,054 669 (1,240) 13,155
Faysal Special Savings Fund - FSSP-III Pakistan 79.77 15,739 - 838 - 16,577
Faysal Stock Fund Pakistan 16.04 6,845 - (487) - 6,358
3,419,532 (10,506) 101,956 (8,289) 3,502,693

December 31, 2023 - Audited

Investment Investment /
Share of Investment
Country of % at the (redemption) Dividend
profit / at the end
incorporation Holding beginning during the received
(loss) of the year
of the period period

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

Associates
Faysal Government Securities Fund Pakistan - 97,449 (97,449) - - -
Faysal Islamic Pension Fund - Debt Pakistan 69.89 33,633 - 6,545 - 40,178
Faysal Islamic Pension Fund - Equity Pakistan 92.23 28,439 - 14,815 - 43,254
Faysal Halal Amdani Fund Pakistan 3.66 - 1,550,000 13,092 (2,991) 1,560,101
Faysal Islamic Sovereign Fund - FISP-I Pakistan 0.01 - 2,987 14,717 (14,658) 3,046
Faysal Islamic Pension Fund - Money Market Pakistan 28.81 33,639 - 7,254 - 40,893
Faysal Islamic Savings Growth Fund Pakistan 52.64 844,471 400,555 56,290 (12,315) 1,289,001
Faysal Islamic Special Income Fund - FISIP-I Pakistan 5.02 107,601 (105,972) 82 (9) 1,702
Faysal Islamic Stock Fund Pakistan 28.62 96,437 18,072 10,744 - 125,253
Faysal Pension Fund - Debt Pakistan 87.02 33,215 - 6,347 - 39,562
Faysal Pension Fund - Equity Pakistan 89.89 27,905 - 14,299 - 42,204
Faysal Pension Fund - Money Market Pakistan 71.21 33,791 - 6,181 - 39,972
Faysal Savings Growth Fund Pakistan - 720,379 (720,379) - - -
Faysal Special Savings Fund - FSSP-I Pakistan 98.72 - 12,083 1,087 - 13,170
Faysal Islamic Financial Growth Fund - FIFGP-I Pakistan 28.72 - 106,350 9,486 (1,606) 114,230
Faysal Islamic KPK Government Pension Fund - Money Market Sub Fund Pakistan 100.00 - 30,000 201 - 30,201
Faysal Islamic KPK Government Pension Fund - Equity Sub Fund Pakistan 100.00 - 500 3 - 503
Faysal Islamic KPK Government Pension Fund - Debt Sub Fund Pakistan 99.96 - 500 3 - 503
Faysal Islamic KPK Government Pension Fund – Equity Index Sub Fund Pakistan 100.00 - 500 3 - 503
Faysal Special Savings Fund - FSSP-II Pakistan 0.31 - 11,499 1,173 - 12,672
Faysal Special Savings Fund - FSSP-III Pakistan 75.27 108,161 (93,792) 1,370 - 15,739
Faysal Stock Fund Pakistan 11.16 264,353 (255,102) (2,406) - 6,845
2,429,473 860,352 161,286 (31,579) 3,419,532

72 First Quarter March 31, 2024

Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

14 ISLAMIC FINANCING AND RELATED ASSETS - NET

Note Performing Non performing Total

Un-audited Audited Un-audited Audited Un-audited Audited
March 31, December 31, March 31, December 31, March 31, December 31,
2024 2023 2024 2023 2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------------------------------------------
Murabaha financing and related assets
Murabaha financing 14.1 48,907,384 38,284,881 81,445 166,424 48,988,829 38,451,305
Advance against Murabaha financing 1,419,597 3,219,979 5,000 5,000 1,424,597 3,224,979
Inventory related to Murabaha 1,122,167 2,174,051 - - 1,122,167 2,174,051
51,449,148 43,678,911 86,445 171,424 51,535,593 43,850,335
Running Musharaka financing
Running Musharaka 188,143,003 195,753,370 - 545,166 188,143,003 196,298,536

Istisna financing and related assets

Istisna 36,770,561 36,501,975 1,173,240 551,792 37,943,801 37,053,767
Advance against Istisna 29,296,297 30,317,852 316,180 172,166 29,612,477 30,490,018
Inventory related to Istisna 14,757,659 7,382,419 55,871 - 14,813,530 7,382,419
80,824,517 74,202,246 1,545,291 723,958 82,369,808 74,926,204
Tijarah financing and related assets
Tijarah 2,499,423 2,455,035 320,222 316,722 2,819,645 2,771,757
Advance against Tijarah 604,807 766,202 - - 604,807 766,202
Inventory related to Tijarah 2,015,660 4,136,549 - 3,500 2,015,660 4,140,049
5,119,890 7,357,786 320,222 320,222 5,440,112 7,678,008
Musawamah financing and related assets
Musawamah 3,063,083 2,788,837 111,423 100,516 3,174,506 2,889,353
Advance against Musawamah 441 4,190 - - 441 4,190
Inventory related to Musawamah 3,705 7,408 - - 3,705 7,408
3,067,229 2,800,435 111,423 100,516 3,178,652 2,900,951
Salam financing and related assets
Salam 9,061,572 100,000 1,200 1,200 9,062,772 101,200
Advance against Salam 100,000 9,850,771 - - 100,000 9,850,771
Inventory related to Salam 638,428 - - - 638,428 -
9,800,000 9,950,771 1,200 1,200 9,801,200 9,951,971
Diminishing Musharaka financing and
related assets
Diminishing Musharaka 211,401,846 210,560,169 6,660,771 5,624,139 218,062,617 216,184,308
Advanced against Diminishing Musharaka 8,719,968 10,225,549 35,000 97,500 8,754,968 10,323,049
220,121,814 220,785,718 6,695,771 5,721,639 226,817,585 226,507,357
Wakala Istithmar financing and
related assets
Wakala Istithmar 6,302,669 6,302,669 - - 6,302,669 6,302,669
6,302,669 6,302,669 - - 6,302,669 6,302,669

Tawwaruq 14,294,791 13,673,003 67,663 98,423 14,362,454 13,771,426

Advance against Islamic export refinance - 2,414,376 - - - 2,414,376
Musharaka 10,975 27,534 1,028 722 12,003 28,256
Bai salam 48,387 277,076 - - 48,387 277,076
Islamic financing and related assets - Gross 579,182,423 577,223,895 8,829,043 7,683,270 588,011,466 584,907,165

Other financing 436,237 478,042 14,359,676 15,376,371 14,795,913 15,854,413

Gross Financing 579,618,660 577,701,937 23,188,719 23,059,641 602,807,379 600,761,578

Credit loss allowance against financing 14.4

- Stage 1 (1,955,485) - - - (1,955,485) -
- Stage 2 (5,571,783) - - - (5,571,783) -
- Stage 3 - - (18,966,812) - (18,966,812) -
- Specific provision - - - (19,172,592) - (19,172,592)
- General provision - (877,670) - - - (877,670)
(7,527,268) (877,670) (18,966,812) (19,172,592) (26,494,080) (20,050,262)
Financing - net of credit loss allowance 572,091,392 576,824,267 4,221,907 3,887,049 576,313,299 580,711,316

March 31, 2024 First Quarter 73

 Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Un-audited Audited
Note March 31, December 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------

14.1 Murabaha receivable - gross 14.1.2 51,207,952 39,623,889

Less: Deferred murabaha income 14.1.3 (226,112) (29,223)
Profit receivable shown in other assets (1,993,011) (1,143,361)
Murabaha financings 14.1.1 48,988,829 38,451,305

14.1.1 The movement in Murabaha financing during the period / year is as follows:
Opening balance 38,451,305 10,837,970
Sales during the period / year 49,621,823 218,668,554
Adjusted during the period / year (39,084,299) (191,055,219)
Closing balance 48,988,829 38,451,305

14.1.2 Murabaha sale price 51,207,952 39,623,889

Murabaha purchase price (48,988,829) (38,451,305)
2,219,123 1,172,584
14.1.3 Deferred murabaha income
Opening balance 29,223 350,063
Arising during the period / year 2,004,899 4,874,300
Less: recognised during the period / year (1,808,010) (5,195,140)
Closing balance 226,112 29,223

14.2 Particulars of Islamic financing and related assets - net

- in local currency 601,186,584 599,815,539

- in foreign currencies 1,620,795 946,039
602,807,379 600,761,578

14.3 Islamic financing and related assets include Rs. 23,188.719 million (December 31, 2023: Rs. 23,059.641
million) which have been placed under non-performing / Stage 3 status as detailed below:

Un-audited Audited
March 31, 2024 December 31, 2023
Non- Non-
Category of classification Credit loss
performing performing Provision
allowance
financing financing
---------------------------------------------------------------------------------------------------------------------- Rupees '000 -------------------------------------------
Domestic
- other assets especially mentioned 16,581 143 204,748 448
- substandard 1,220,323 160,729 883,657 104,142
- doubtful Stage 3 1,188,045 431,259 670,909 170,824
- loss 20,763,770 18,374,681 21,300,327 18,897,178
Total 23,188,719 18,966,812 23,059,641 19,172,592

74 First Quarter March 31, 2024

 Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

14.4 Particulars of credit loss allowance against Islamic financing and related assets

Un-audited Audited
March 31, 2024 December 31, 2023
General Specific General
Stage 3 Stage 2 Stage 1 Total Total
Provision Provision Provision
------------------------------------------------------------------------------------------------------------- Rupees '000 -----------------------------------------------------------

Opening balance 19,172,592 - - 877,670 20,050,262 18,557,417 771,609 19,329,026

Impact of adopting IFRS 9 at
January 1, 2024 - 5,313,762 1,962,501 (877,670) 6,398,593 - - -
Restated balance 19,172,592 5,313,762 1,962,501 - 26,448,855 18,557,417 771,609 19,329,026
at January 1, 2024

Exchange adjustment (10,063) - - - (10,063) 132,838 - 132,838

Charge for the period / year 512,797 258,021 - - 770,818 1,960,357 106,061 2,066,418
Reversals during the period / year (654,896) - (7,016) - (661,912) (1,338,179) - (1,338,179)
(142,099) 258,021 (7,016) - 108,906 622,178 106,061 728,239
Amounts written off (53,618) - - - (53,618) (139,841) - (139,841)

Closing balance 18,966,812 5,571,783 1,955,485 - 26,494,080 19,172,592 877,670 20,050,262

14.4.1 Credit loss allowance for Stage 1 and Stage 2 represents credit loss allowance maintained against performing
portfolio of corporate, consumer and trade finance, as required under IFRS 9.

14.4.2 As allowed by the SBP, the Group has availed benefit of forced sale value (FSV) of collaterals held as security
of Rs 2,470.489 million (December 31, 2023: Rs 2,457.777 million) relating to financing while determining the
provisioning requirement against non-performing financing as at March 31, 2024. The additional profit arising
from availing the FSV benefit (net of tax) as at March 31, 2024 which is not available for distribution as either
cash or stock dividend to shareholders and bonus to employees approximately amounted to Rs 1,259.949
million (December 31, 2023: Rs 1,253.466 million).

14.5 Islamic financing and related assets - Particlurs of credit loss allowance

Un-audited
March 31, 2024
Stage 1 Stage 2 Stage 3
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------------

Opening balance - - 19,172,592

Impact of adopting IFRS 9 as at January 1, 2024 1,962,501 5,313,762 -
Restated balance as at January 1, 2024 1,962,501 5,313,762 19,172,592

New Financing / Increase 470,353 829,023 113,448

Financing derecognised or repaid (327,848) (321,174) (654,896)
Transfer to stage 1 - - -
Transfer to stage 2 (113,321) 113,321 -
Transfer to stage 3 (36,200) (363,149) 399,349
(7,016) 258,021 (142,099)

Amounts written off / charged off - - (53,618)

Exchange adjustment - - (10,063)
Closing balance 1,955,485 5,571,783 18,966,812

March 31, 2024 First Quarter 75

 Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

14.6 Islamic financing and related assets - Category of classification

Un-audited Audited
March 31, 2024 December 31, 2023
Outstanding Credit loss Outstanding
Provision
amount allowance amount
----------------------------------------------------------------------------------------------------------------------
Domestic Rupees '000 ---------------------------------------------

Performing Stage 1 501,048,892 1,955,485 577,701,937 877,670

Underperforming Stage 2 78,569,768 5,571,783 - -
Non-Performing
Other assets especially mentioned 16,581 143 204,748 448
Substandard 1,220,323 160,729 883,657 104,142
Doubtful Stage 3 1,188,045 431,259 670,909 170,824
Loss 20,763,770 18,374,681 21,300,327 18,897,178
Total 602,807,379 26,494,080 600,761,578 20,050,262

Un-audited Audited
Note March 31, December 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
15 PROPERTY AND EQUIPMENT

Capital work-in-progress 15.1 5,274,395 4,115,708

Property and equipment 27,270,071 25,509,672
32,544,466 29,625,380
15.1 Capital work-in-progress

Civil works 522,286 266,236

Equipment 3,563,960 2,968,971
Furniture and fixture 428,652 299,479
Vehicles 42,524 16,824
Land and building 716,973 564,198
5,274,395 4,115,708

Un-audited
Quarter ended
March 31, March 31,
15.2 Additions to property and equipment
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
The following additions have been made to property and
equipment during the period:

Capital work-in-progress - net 1,158,687 542,516

Property and equipment

Furniture and fixture 94,242 69,920

Electrical, office and computer equipment 1,493,897 218,576
Vehicles 3,880 43,017
Building on leasehold land 126,376 129,140
Leasehold land 438,807 -
Leasehold improvements 276,345 471,254
2,433,547 931,907
Total 3,592,234 1,474,423

76 First Quarter March 31, 2024

Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Un-audited
Quarter ended
March 31, March 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
15.3 Disposal of property and equipment

The net book value of fixed assets disposed off during the period is as follows:

Furniture and fixture - 11

Electrical, office and computer equipment 18 1,085
Others - 208
Total 18 1,304

Un-audited Audited
Note March 31, December 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------

16 RIGHT-OF-USE ASSETS
Buildings Buildings

Opening balance
Cost 18,790,212 16,462,619
Accumulated Depreciation 8,018,697 6,056,045
Net carrying amount 10,771,515 10,406,574

Additions during the period 400,262 2,435,801

Modifications during the period - 21,292
Deletions during the period (135,604) (129,500)
Depreciation Charge for the period / year (485,781) (1,962,652)
Net carrying amount 10,550,392 10,771,515

17 INTANGIBLE ASSETS

Capital work-in-progress 17.1 808,446 799,929

Computer softwares 1,231,842 -
Customer relationship 348,683 -
Management rights 114,600 -
Goodwill - -
1,695,125 1,652,458
Total 2,503,571 2,452,387

17.1 Capital work-in-progress

Computer software 808,446 711,373

Un-audited
Quarter ended
March 31, March 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
17.2 Additions to intangible assets

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

Computer software - directly purchased 159,368 163,137

March 31, 2024 First Quarter 77

Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Un-audited Audited
Note March 31, December 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
18 OTHER ASSETS

Profit / return accrued in local currency 67,181,120 44,142,282

Profit / return accrued in foreign currencies 148,997 82,278
Advances, deposits, advance rent and other prepayments 2,208,686 1,814,503
Non-banking assets acquired in satisfaction of claims 893,115 929,659
Mark to market gain on forward foreign exchange contracts 174,771 550,232
Acceptances 24 10,402,914 13,152,356
Credit cards and other products fee receivable 1,447,190 1,235,999
Receivable from brokers against sale of shares - 89,252
Dividend receivable 89,810 75,348
Receivable from 1Link (Private) Limited 8,357,097 4,407,978
Rebate receivable - net 480,127 280,127
Receivable from defined benefit plan 247 89,545
Remittances receivable from Western Union 1,846,661 1,307,125
Others 3,101,220 2,357,513
96,331,955 70,514,197
Less: Credit loss allowance held against other assets 18.1 (333,270) (328,963)
Other assets - net of credit loss allowance 95,998,685 70,185,234
Surplus on revaluation of non-banking assets acquired in
satisfaction of claims 1,734,104 1,735,172
Other assets - total 97,732,789 71,920,406

18.1 Credit loss allowance held against other assets

Dividend receivable 74,342 75,348

Receivable from customers 51,172 50,473
Security deposits 22,994 22,994
Acceptances 6,940 -
Others 177,822 180,148
333,270 328,963

18.1.1 Movement in Credit loss allowance held against other assets

Opening balance 328,963 326,637

Impact of adopting IFRS 9 as at January 1, 2024 3,657 -
Restated balance as at January 1, 2024 332,620 326,637

Charge for the period / year 3,283 2,731

Reversals during the period / year (2,633) (405)
650 2,326

Closing balance 333,270 328,963

19 BILLS PAYABLE

In Pakistan 12,374,874 16,550,469

78 First Quarter March 31, 2024

 Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Un-audited Audited
March 31, December 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
20 DUE TO FINANCIAL INSTITUTIONS
Secured
To the State Bank of Pakistan (SBP) under:
Long term financing facility 327 -
Long term financing facility for renewable power energy (RPE) 115 230
Islamic export refinance scheme - part I and II 28,780,171 30,665,904
Islamic financing for renewable energy 6,680,046 6,641,671
Islamic long term financing facility 10,728,663 11,126,779
Islamic temporary economic refinance scheme 30,186,069 31,034,309
Islamic refinance facility for combating COVID-19 149,444 166,111
Islamic refinance facility for storage of agricultural produce 485,005 513,439
Scheme of Islamic Rupee-based discounting facility under EFS/IERS 683,569 708,777
77,693,409 80,857,220
Due to SBP under Open Market Operations (OMO) 146,437,529 73,594,497
Due to other financial institutions 3,392,290 3,402,344
Total secured 227,523,228 157,854,061
Unsecured
Overdrawn nostro accounts 1,284,473 2,128,409
Musharaka acceptances 16,325,000 6,904,333
Total unsecured 17,609,473 9,032,742
245,132,701 166,886,803

21 DEPOSITS AND OTHER ACCOUNTS

Un-audited Audited
March 31, 2024 December 31, 2023
In local In foreign In local In foreign
Total Total
currency currencies currency currencies
---------------------------------------------------------------------------------------------------- Rupees '000 ---------------------------------------------------------------
Customers
Current deposits 295,029,550 31,800,936 326,830,486 271,673,365 30,468,754 302,142,119
Savings deposits 274,142,563 22,649,123 296,791,686 246,343,937 21,489,149 267,833,086
Term deposits 217,859,132 1,689,061 219,548,193 244,250,942 1,484,842 245,735,784
Margin deposits 13,607,292 83,773 13,691,065 12,175,267 48,071 12,223,338
800,638,537 56,222,893 856,861,430 774,443,511 53,490,816 827,934,327
Financial institutions
Current deposits 19,040,272 295,774 19,336,046 11,726,778 275,306 12,002,084
Savings deposits 165,364,341 - 165,364,341 169,728,021 - 169,728,021
Term deposits 7,090,000 - 7,090,000 8,600,547 - 8,600,547
191,494,613 295,774 191,790,387 190,055,346 275,306 190,330,652
992,133,150 56,518,667 1,048,651,817 964,498,857 53,766,122 1,018,264,979

Un-audited Audited
March 31, December 31,
2024 2023
22----------------------------------------------------------------------------------------------------------------------
LEASE LIABILITIES Rupees '000 ------------------------------

Outstanding amount at the start of the period / year 12,865,125 11,824,784

Additions during the period / year 394,889 1,962,697
Lease payments including profit (627,441) (1,672,349)
Profit expense for the period / year 393,973 798,034
Termination / deletion during the period / year (155,728) (48,041)
Outstanding amount at the end of the period / year 12,870,818 12,865,125

March 31, 2024 First Quarter 79

Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Un-audited Audited
Note March 31, December 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------

22.1 Liabilities Outstanding

Not later than one year 58,134 218,318
Later than one year and upto five years 3,024,949 2,896,857
Over five years 9,787,735 9,798,024
Total at the period / year end 12,870,818 12,913,199

22.2 This carries effective charge rate of 12.4% per annum (December 31, 2023: 12.7%).

23 DEFERRED TAX LIABILITIES

Taxable temporary differences on

- surplus on revaluation of property and equipment 2,059,906 2,093,908
- surplus on revaluation of non-banking assets 15,678 16,201
- surplus on revaluation of investments 1,689,068 3,203,408
- fair value adjustment relating to net assets acquired upon
amalgamation 191,851 180,916
- fair value adjustment relating to net assets acquired upon
business combination - 52,496
- accelerated tax depreciation 452,614 349,641
- fair valuation of previously held equity interest in the Subsidiary Company - 13,118
4,409,116 5,909,687
Deductible temporary differences on
- credit loss allowance investments (112,717) (847,584)
- credit loss allowance against financing, off balance sheet etc. (3,449,772) (16,248)
- credit loss allowance against other assets (128,697) (105,740)
(3,691,186) (969,572)

717,931 4,940,115

24 OTHER LIABILITIES
Profit / return payable in local currency 16,288,389 13,233,050
Profit / return payable in foreign currencies 15,342 9,728
Unearned commission and income on bills discounted 1,534,733 1,493,017
Accrued expenses 5,967,284 6,498,018
Acceptances 18 10,402,914 13,152,356
Dividend payable including unclaimed dividends 4,000,087 7,078,679
Mark to market loss on forward foreign exchange contracts 959,277 664,315
Current taxation (provision less payments) 1,017,341 3,256,604
Charity fund balance - 126,297
Credit loss allowance against off-balance sheet obligations 24.1 250,272 -
Security deposits against leases 96,384 148,216
Withholding tax payable 953,948 341,182
Federal excise duty payable 167,619 159,996
Payable to brokers against purchase of shares 9,467 91,311
Fair value of derivative contracts 1,394,420 1,657,226
Payable related to credit cards and other products 95,154 545,308
Funds held as security 330,047 321,357
Payable to 1Link (Private) Limited 799,394 595,002
Takaful payable 58,028 59,974
Clearing and settlement accounts 18,850,519 10,836,330
Others 836,956 584,194
64,027,575 60,852,160

80 First Quarter March 31, 2024

Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Un-audited Audited
Note March 31, December 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
24.1 Credit loss allowance against off-balance sheet obligations

Opening balance 91,297 87,700

Impact of adopting IFRS 9 at January 1, 2024 53,356 -
Adjusted balance at January 1, 2024 144,653 87,700

Charge for the period / year 105,619 3,597

Reversals during the period / year - -
105,619 3,597

Closing balance 250,272 91,297

25 SURPLUS ON REVALUATION OF ASSETS - NET OF TAX

Surplus on revaluation of:

- Securities measured at FVOCI-Debt 2,924,118 4,321,608
- Securities measured at FVOCI-Equity 315,745 2,245,115
- Property and equipment 12,127,334 12,196,725
- non-banking assets acquired in satisfaction of claims 1,734,104 1,735,172
17,101,301 20,498,620
Deferred tax on surplus on revaluation of:
- Securities measured at FVOCI-Debt (1,432,818) (2,117,588)
- Securities measured at FVOCI-Equity (108,504) (1,100,106)
- Property and equipment (2,059,906) (2,093,908)
- non-banking assets acquired in satisfaction of claims (15,678) (16,201)
(3,616,906) (5,327,803)

13,484,395 15,170,817

26 CONTINGENCIES AND COMMITMENTS

Guarantees 26.1 42,324,365 39,050,948

Commitments 26.2 293,462,225 225,759,797
Other contingent liabilities 26.3 4,122,244 4,122,244
339,908,834 268,932,989

26.1 Guarantees

Financial guarantees 6,165,760 4,523,565

Performance guarantees 9,655,989 9,201,571
Other guarantees 26,502,616 25,325,812
42,324,365 39,050,948

26.2 Commitments

Documentary credits and short-term trade-related transactions

- letters of credit 78,127,865 80,258,955

Commitments in respect of:

- forward foreign exchange contracts 26.2.1 61,308,394 65,125,446
- forward government securities transactions 26.2.2 147,958,500 73,777,500
- promissory contracts - cross currency swaps (notional principal) 26.2.3 1,395,192 1,678,515
- extending credit (irrevocable) 26.4 4,008,151 3,429,739

Commitments for acquisition of:

- property and equipment 409,604 1,180,860
- intangible assets 254,519 308,782

293,462,225 225,759,797

March 31, 2024 First Quarter 81

Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Un-audited Audited
Note March 31, December 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
26.2.1 Commitments in respect of forward foreign exchange contracts

Purchase 54,109,979 55,514,935

Sale 7,198,415 9,610,511
61,308,394 65,125,446

26.2.2 Commitments in respect of forward government securities transactions

Purchase 147,958,500 73,777,500

26.2.3 Commitments in respect of derivatives

Cross currency swaps

Sale 27.1 1,395,192 1,678,515

26.3 Other contingent liabilities

26.3.1 Holding Company

Suit filed by a customer for recovery of alleged losses suffered which

is pending in the Honorable High Court of Sindh. The Holding Company’s
legal advisors are confident that the Holding Company has a strong case 2,510,000 2,510,000
Indemnity issued favouring the Honorable High Court in one of the cases 457,543 457,543
Tax liability of gain on bargain purchase on the acquisition of
ex-RBS Pakistan (i) 1,154,701 1,154,701
4,122,244 4,122,244

(i) Income tax assessments of the Holding Company have been finalised upto the tax year 2023
(accounting year ended December 31, 2022). Income tax return for tax year 2024 (accounting year
ended December 31, 2023) will be filed by the Holding Company within stipulated timeline.

The department and the Holding Company has disagreement on a matter relating to taxability of gain
on bargain purchase on the acquisition of ex-RBS Pakistan. The additional tax liability on the matter
amounts to Rs. 1,154.701 million (December 31, 2023: Rs. 1,154.701 million). The Commissioner
Inland Revenue (Appeals) [CIR(A)] had deleted the said additional tax liability, however the income tax
department had filed an appeal with the Appellate Tribunal Inland Revenue (ATIR) against the order of
CIR(A). During the current period, the ATIR passed an order and maintained the decision of the CIR(A)
in favour of the Holding Company that gain on bargain purchase is not taxable. Subsequently, the
department has challenged the order in Honorable High Court of Sindh. However, the management of
the Holding Company is confident that the matter will be decided in the Holding Company's favour and
accordingly, no provision has been recorded in these condensed interim consolidated financial
statements in respect of this matter.

(ii) There are certain claims against the Holding Company not acknowledged as debt amounting to
Rs 33,605.629 million (December 31, 2023: Rs 29,647.217 million). These mainly represent counter
claims filed by the borrowers for restricting the Holding Company from disposal of assets (such as
mortgaged / pledged assets kept as security), cases where the Holding Company was proforma
defendant for defending its interest in the underlying collateral kept by it at the time of financing,
certain cases filed by ex-employees of the Holding Company for damages sustained by them
consequent to the termination from the Holding Company's employment and cases for damages
towards opportunity losses suffered by the customers due to non-disbursements of running finance
facility as per the agreed terms. The above also includes an amount of Rs 25,299.030 million
(December 31, 2023: 25,299.030 million) in respect of a suit filed against the Bank for declaration,
recovery of monies, release of securities, rendition of account and damages.

Based on legal advice and / or internal assessments, the management is confident that the above
matters will be decided in the Holding Company's favour and accordingly no provision has been made
in these condensed interim consolidated financial statements.

82 First Quarter March 31, 2024

Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

26.3.2 Subsidiary Company - Faysal Asset Management Limited

(i) The income tax returns of the Subsidiary Company for the tax years 2004 to 2020 (financial year ended
June 30, 2004 to December 31, 2019) have been filed and are deemed to have been assessed under
the Income Tax Ordinance, 2001, unless selected by the taxation authorities for audit purposes. The
Tax year 2005 (financial year ended June 30, 2005) has been selected by the taxation authorities for
audit purpose. The tax authorities have passed an order under section 221 of the Income Tax
Ordinance, 2001, whereby they have determined an additional liability of Rs. 0.913 million for the tax
year 2005 on account of apportionment of expenses and disallowance of certain expenses. The
Subsidiary Company has paid Rs. 0.414 million and has filed an appeal against the order before the
Commissioner Appeals, the proceedings of which are underway. The remaining tax liability on these
matters is Rs. 0.498 million. The management of the Subsidiary Company is confident that the decision
in respect of these matters will be decided in the Subsidiary Company's favour and accordingly no
provision for the above has been made in these condensed interim consolidated financial statements
in respect of this liability.

(ii) The income tax department has issued orders and show cause notices under section 221 of the
Income Tax Ordinance, 2001 for recovery of Workers Welfare Fund (WWF) aggregating to Rs 0.818
million in respect of tax years 2008 and 2013. The details of orders and show cause along with the
management actions are listed below:

Order / show WWF Demand

Tax years Status
cause references Rupees '000
Order u/s 221 dated Appeal pending before the
2008
June 30, 2014 Commissioner Appeals 315
Show cause u/s 221 dated Showcause notice has been
2013
May 7, 2014 responded to 503
818

The management is of the view that WWF was not applicable for tax year 2008. In tax year 2013,
subsequent to clarification decision by the SHC, the management has not admitted WWF charge in the
annual return of income. The management of the Subsidiary Company is confident that the decision in
respect of these matters will be decided in the Subsidiary Company's favour and accordingly no
provision for the above has been made in these condensed interim consolidated financial statements
in respect of this liability.

(iii) The Punjab Revenue Authority issued show cause notice No.PRA/AM/61/2205/ dated March 12, 2014
to Faysal Asset Management Limited requiring the Subsidiary Company to obtain registration /
enrolment and to pay sales tax amounting to Rs. 6.055 million from July 2013 to March 2014 under the
Punjab Sales Tax on Services Act, 2012 with effect from May 22, 2013 on management fee earned in
Punjab.

In respect of this, the Subsidiary Company, jointly with other Asset Management Companies together
with their respective collective investment schemes through their trustees, has filed a petition on July 8,
2014 in the SHC challenging the above notice. The Court has ordered suspension of the show cause
notice till the next hearing of appeal in their order dated July 10, 2014. The next date of hearing has not
yet been decided. The management of the Subsidiary Company is confident that the decision in
respect of these matters will be decided in the Subsidiary Company's favour and accordingly no
provision for the above has been made in these condensed interim consolidated financial statements
in respect of this liability.

(iv) During the prior period, the audit of the tax year 2013 (financial year ended June 30, 2013) was
completed by the taxation authorities. The tax authorities have passed an order under section 122(5A)
of the Income Tax Ordinance, 2001, whereby they have determined an additional liability of Rs. 4.964
million for the tax year 2013 on account of apportionment of expenses, salary expenses and hardware
and software expense. The management filed an appeal before the Commissioner Inland Revenue
(Appeals) [CIR(A)] on the grounds of disallowances made by the Additional Commissioner Inland
Revenue. The CIR(A) remanded back a few expenses while ordered against various other expenses
for which the Subsidiary Company has decided to appeal before the Appellate Tribunal Inland

March 31, 2024 First Quarter 83

Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Revenue (ATIR). The management of the Subsidiary Company is confident that the decision in respect
of these matters will be decided in the Subsidiary Company's favour and accordingly no provision for
the above has been made in these condensed interim consolidated financial statements in respect of
this liability.

(v) During the year ended December 31, 2020, the audit of the tax year 2014 (financial year ended June
30, 2014) was completed by the taxation authorities. The tax authorities have passed an order under
section 122(5A) of the Income Tax Ordinance, 2001, whereby they have determined an additional
liability of Rs. 2.673 million for the tax year 2014 on account of apportionment of expenses, time barred
payables, expenses claimed on provisional basis, salary expenses, marketing and advertising
expenses, brokerage and commission expenses, legal and professional charges and hardware and
software expenses. The management had decided to file an appeal before the Commissioner Inland
Revenue (Appeals) [CIR(A)] on the grounds of disallowances made by the Additional Commissioner
Inland Revenue. During the current period the CIR(A) issued an order whereby the earlier order
passed by the tax authorities under section 122(5A) of the Income Tax Ordinance, 2001, has been
annulled on the basis of being time barred, and consequentially the demand for additional liability has
been relinquished. The management has decided to file an appeal before the Appellate Tribunal Inland
Revenue (ATIR) to contest the order passed by DCIR. The management of the Subsidiary Company is
confident that the decision in respect of these matters will be decided in the Subsidiary Company's
favour and accordingly no provision for the above has been made in these condensed interim
consolidated financial statements in respect of this liability.

(vi) During the year ended December 31, 2020, the Deputy Commissioner Inland Revenue (DCIR) has
passed an order under section 182(1) of the Income Tax Ordinance, 2001 for the tax year 2018,
whereby the DCIR has imposed a penalty of Rs. 0.833 million on account of non submission of
statement required to be filed by the Subsidiary Company under bilateral or multilateral convention
under section 165B of the Income Tax Ordinance, 2001. The management has filed an appeal before
the CIR(A) on the subject matter and has paid an amount of Rs 0.083 million being 10% of the total
amount of penalty imposed under the order and has thus obtained an automatic stay on the subject
matter. The management of the Subsidiary Company is confident that the matter will be decided in the
Subsidiary Company's favour and accordingly no provision in respect of this penalty has been made in
these condensed interim consolidated financial statements.

26.4 Commitments to extend credits

The Holding Company 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. 4,008.151 million (December 2023: Rs. 3,430.739 million)
which are irrevocable in nature.

Un-audited Audited
March 31, December 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
27 DERIVATIVE INSTRUMENTS

Cross currency swaps (notional principal) 1,395,192 1,678,515

84 First Quarter March 31, 2024

 Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

27.1 Product analysis

March 31, 2024 (Un-audited)

Cross currency swaps
Counterparties
Notional Mark to
principal market gain
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
With banks for
Hedging - -
Market making 134,605 (151,157)

With other entities for

Hedging - -
Market making 1,260,587 (1,243,263)

Total
Hedging - -
Market making 1,395,192 (1,394,420)

December 31, 2023 (Audited)

Cross currency swaps
Counterparties
Notional Mark to
principal market gain
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
With banks for
Hedging - -
Market making 101,866 (139,900)

With other entities for

Hedging - -
Market making 1,576,649 (1,517,326)

Total
Hedging - -
Market making 1,678,515 (1,657,226)

Un-audited
Quarter ended
March 31, March 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
28 PROFIT / RETURN EARNED

On:
Financing 27,126,990 17,353,046
Investments 32,118,655 17,334,253
Due from financial institutions 208,226 149,442
Balances with banks 737 1,783
59,454,608 34,838,524

28.1 Pofit / return recognised on:

Financial assets measured at amortised cost 27,723,643
Financial assets measured at fair value through OCI 31,730,965
59,454,608

March 31, 2024 First Quarter 85

Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Un-audited
Quarter ended
29 PROFIT / RETURN EXPENSED March 31, March 31,
2024 2023
----------------------------------------------------------------------------------------------------------------------
On: Rupees '000 ------------------------------
Deposits 29,650,023 13,747,340
Due to financial institutions 9,085,771 7,026,366
Lease liability against right-of-use assets 393,973 353,064
Cost of foreign currency swaps against foreign currency deposits / Due to FIs 1,614,295 670,293
40,744,062 21,797,063

29.1 Proft / return expense calculated using effective profit rate method 39,129,767
Other financial liabilities 1,614,295
40,744,062

30 FEE AND COMMISSION INCOME

Branch banking customer fees 321,227 264,206

Consumer finance related fees 151,166 153,937
Card related fees 1,139,153 975,968
Credit related fees 13,057 5,561
Investment banking fees 98,952 93,307
Commission on trade 327,484 151,103
Commission on guarantees 36,648 54,800
Commission on cash management 40,706 28,401
Commission on remittances including home remittances 269,492 96,965
Commission on bancatakaful 22,786 32,207
Commission on sale of funds unit 137,370 57,771
Management fee 336,400 138,853
Sales load 89,837 55,658
Others 16,558 31,410
3,000,836 2,140,147

31 GAIN / (LOSS) ON SECURITIES

Realised - net 31.1 20,354 (888,784)

Unrealised - Measured at FVTPL 206,884 864
227,238 (887,920)
31.1 Realised Gain / (loss) on:

Federal Government securities 34,433 (145,884)

Shares (14,079) (757,516)
Open end mutual funds - 14,616
20,354 (888,784)

31.2 Net gain / (loss) on financial assets / liabilities

Net gain / (loss) on financial assets / liabilities measured at FVTPL:

Designated upon initial recognition 182,720
Mandatorily measured at FVTPL -
182,720

Net gain / (loss) on financial assets / liabilites measured at amortised cost -

Net gain / (loss) on financial assets measured at FVOCI 44,518
Net gain / (loss) on investments in equity instruments designated at FVOCI -
44,518

227,238

86 First Quarter March 31, 2024

Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Un-audited
Quarter ended
March 31, March 31,
32 OTHER INCOME 2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
Rent on property 60,092 45,664
Gain on sale of fixed assets - net 4,770 8,389
Gain on termination of leases (IFRS 16) 19,563 -
Notice pay recovered 2,769 2,368
Scrap income 6,552 19
Others 829 8,451
94,575 64,891

33 OPERATING EXPENSES

Total compensation expense 4,270,440 2,999,988

Property expense
Rent and taxes 61,013 67,398
Takaful 38,644 28,086
Utilities cost 298,513 282,175
Security (including guards) 443,907 338,215
Repair and maintenance (including janitorial charges) 262,627 219,474
Depreciation on owned fixed assets 229,940 198,418
Depreciation on non-banking assets 786 1,686
Depreciation on right-of-use assets 485,781 444,049
Others 56,133 54,949
1,877,344 1,634,450
Information technology expenses
Software maintenance 1,203,764 789,437
Hardware maintenance 112,545 85,383
Depreciation 195,046 95,378
Amortisation 95,717 70,289
Network charges 99,848 87,431
1,706,920 1,127,918
Other operating expenses
Directors' fees and allowances 43,040 40,640
Legal and professional charges 50,365 36,658
Outsourced services costs - staff 234,951 169,204
Travelling and conveyance 98,499 56,739
NIFT clearing charges 46,095 20,274
Depreciation 212,552 151,852
Training and development 14,132 16,221
Postage and courier charges 59,893 68,047
Communication 309,500 179,396
Marketing, advertisement and publicity 500,847 493,332
Auditors’ remuneration 15,712 7,071
Takaful 191,858 213,728
Stationery and printing 280,992 116,084
Bank fees and charges 80,334 27,748
Brokerage and commission 15,423 36,875
Deposit protection premium 212,780 149,786
Credit card bonus points redemption 78,700 96,292
Others 469,325 231,306
2,914,998 2,111,253
10,769,702 7,873,609
34 OTHER CHARGES

Penalties imposed by the State Bank of Pakistan 4,455 317

March 31, 2024 First Quarter 87

Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Un-audited
Quarter ended
Note March 31, March 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
35 CREDIT LOSS ALLOWANCE AND WRITE OFFS - NET

Credit loss allowance against due from financial institutions 12.1 1 -

Credit loss allowance for diminution in value of investments 13.3 (109,713) 1,382,930
Credit loss allowance against Isalmic finacing and related assets 14.4 108,906 59,480
Credit loss allowance provision against other assets 18.1.1 650 -
Credit loss allowance against off balance sheet obligations 24.1 105,619 650
Bad debts written off directly 4,503 5,328
Recoveries of written off / charged off bad debts (73,886) (83,487)
36,079 1,364,901

36 TAXATION

Current 6,438,296 3,651,613

Prior years (190,000) 55,000
Deferred (143,796) (644,728)
6,104,500 3,061,885

37 BASIC EARNINGS PER SHARE

Profit after tax for the period 6,609,312 3,306,708

Number of shares
in thousands

Weighted average number of ordinary shares 1,517,697 1,517,697

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

Basic earnings per share 4.35 2.18

37.1 Diluted earnings per share has not been presented as the Group does not have any convertible instruments in
issue at March 31, 2024 and March 31, 2023 which would have any effect on the earnings per share if the
option to convert is exercised.

38 FAIR VALUE MEASUREMENTS

The fair value of quoted securities other than those classified under held to collect model, is based on quoted
market price. Quoted securities classified under held to collect model are carried at amortized cost. The fair
value of unquoted equity securities, other than investments in associates and subsidiaries, is determined on
the basis of adjusted net asset method as per their latest available financial statements.

The fair value of unquoted debt securities, fixed term loans, other assets, other liabilities, fixed term deposits
and borrowings cannot be calculated with sufficient reliability due to the absence of a current and active
market for these assets and liabilities and reliable data regarding market rates for similar instruments.

38.1 Fair value of financial assets

The Group measures fair values using the following fair value hierarchy that reflects the significance of the
inputs used in making the measurements:

Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or
liabilities.

88 First Quarter March 31, 2024

 Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from
prices).

Level 3: Fair value measurements using input for the asset or liability that are not based on observable
market data (i.e. unobservable inputs).

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:

March 31, 2024 (Un-audited)

Level 1 Level 2 Level 3 Total
On-balance sheet financial instruments
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------------------

Financial assets - measured at fair value

Investments
Federal Government securities - 580,100,459 - 580,100,459
Shares 5,125,489 1,231,884 - 6,357,373
Non-Government debt securities - 49,280,592 - 49,280,592

Financial assets - disclosed but not measured at fair value

Investments
Non-Government debt securities - 6,780,900 - 6,780,900

Non-financial assets - measured at fair value

Fixed assets (land and buildings) - - 18,288,496 18,288,496
Non-banking assets acquired in satisfaction of claims - - 2,627,219 2,627,219

Off-balance sheet financial instruments - measured at fair value

Forward purchase of foreign exchange - 54,109,979 - 54,109,979
Forward sale of foreign exchange - 7,198,415 - 7,198,415
Derivatives sales - 1,395,192 - 1,395,192

December 31, 2023 (Audited)

Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------------------------------------------------
On-balance sheet financial instruments Rupees '000 ------------------------------------------

Financial assets - measured at fair value

Investments
Federal Government securities - 524,145,204 - 524,145,204
Shares 5,746,729 107,539 - 5,854,268
Non-Government debt securities - 49,770,265 - 49,770,265

Financial assets - disclosed but not measured at fair value

Investments
Non-Government debt securities - 6,779,489 - 6,779,489

Non-financial assets - measured at fair value

Fixed assets (land and buildings) - - 17,871,529 17,871,529
Non-banking assets acquired in satisfaction of claims - - 2,667,419 2,667,419

Off-balance sheet financial instruments - measured at fair value

Forward purchase of foreign exchange - 55,514,935 - 55,514,935
Forward sale of foreign exchange - 9,610,511 - 9,610,511
Derivatives sales - 1,678,515 - 1,678,515

March 31, 2024 First Quarter 89

Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

The Group's policy is to recognise transfers into and out of the different fair value hierarchy levels at the date
when the event or change in circumstances require the Bank to exercise such transfers.

Valuation techniques used in determination of fair values within level 2

Item Valuation approach and input used

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

The fair value of unquoted equity securities is determined on the basis of

Unlisted ordinary shares adjusted net asset method as per their latest available financial
statements.

Fair values of Sukuk certificates are determined using the MUFAP or PSX
Sukuk Certificates rates.

Forward foreign The valuation has been determined by interpolating the mark-to-market
exchange contracts currency rates announced by the State Bank of Pakistan.

The Bank enters into derivative contracts with various counterparties.

Derivatives that are valued using valuation techniques with market
observable inputs are mainly cross currency swaps and forward foreign
Derivative instruments
exchange contracts. The most frequently applied valuation techniques
include forward pricing and swap models, using present value
calculations.

Units of mutual funds are valued using the net asset value (NAV)
Mutual funds
announced by the Mutual Funds Association of Pakistan (MUFAP).

Valuation techniques used in determination of fair valuation of financial instruments within level 3

Item Valuation approach and input used

Land and buildings are revalued by professionally qualified valuers as per
Property and equipment the accounting policy disclosed in the unconsolidated financial statements
(land and buildings) of the Bank for the year ended December 31, 2022.

Non-banking assets NBAs are valued by professionally qualified valuers as per the accounting
(NBAs) acquired in policy disclosed in the unconsolidated financial statements of the Bank for
satisfaction of claims the year ended December 31, 2023.

The valuations, mentioned above, are conducted by the valuation experts appointed by the Holding Company
which are also on the panel of the Pakistan Banks' Association (PBA). The valuation experts use a market
based approach to arrive at the fair value of the Holding Company’s properties. The market approach uses
prices and other relevant information generated by market transactions involving identical or 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
quantitative disclosure of sensitivity has not been presented in these condensed interim consolidated financial
statements.

90 First Quarter March 31, 2024

Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

39 SEGMENT INFORMATION

39.1 Segment details with respect to business activities

2024
Retail CIBG Treasury SAM Others Total
Profit and loss for the quarter
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------------------------------------------------------
ended March 31, 2024
(Un-audited)
External funded revenue (22,444,721) 18,712,188 23,007,506 51,087 (513,558) 18,812,502
Inter segment revenue - net 40,967,661 (18,514,073) (24,025,601) 226,578 1,345,435 -
External non-funded revenue 2,423,299 935,232 2,382,224 1,381 (766,312) 4,975,824
Total Income 20,946,239 1,133,347 1,364,129 279,046 65,565 23,788,326

Segment direct expenses 6,462,445 343,483 133,146 80,069 4,019,292 11,038,435

Inter segment expense allocation 3,289,934 381,847 77,767 70,431 (3,819,979) -
Total expenses 9,752,379 725,330 210,913 150,500 199,313 11,038,435
Credit loss allowance 42,189 257,245 (317,741) (419,510) 473,896 36,079
Profit before tax 11,151,671 150,772 1,470,957 548,056 (607,644) 12,713,812

Statement of financial position

as at March 31, 2024
(Un-audited)
Cash and bank balances 26,927,677 - 71,213,138 - 2,626 98,143,441
Due from financial institutions - - 10,999,999 - - 10,999,999
Investments - net 150,000 8,819,245 635,914,676 1,915,447 1,542,691 648,342,059
Investment - credit loss allowance - - (419,932) (1,915,447) - (2,335,379)
Net inter segment lending 879,166,978 - - - (879,166,978) -
Financing- performing 115,055,922 452,459,394 - - 12,103,344 579,618,660
Financing- non-performing 4,530,586 4,817,582 - 13,668,895 171,656 23,188,719
Financing- credit loss allowance (3,601,097) (9,045,812) - (13,590,844) (256,327) (26,494,080)
Others 28,168,470 12,009,942 42,586,138 249,111 60,317,557 143,331,218
Total assets 1,050,398,536 469,060,351 760,294,019 327,162 (805,285,431) 1,474,794,637

Due to financial institutions 10,802,084 70,370,220 163,960,397 - - 245,132,701

Subordinated sukuk - - - - - -
Deposits and other accounts 985,725,201 63,461,060 - 454,269 (988,713) 1,048,651,817
Net inter segment borrowing - 334,145,449 591,723,514 (127,977) (925,740,986) -
Others 53,871,251 1,083,622 2,148,795 870 32,886,660 89,991,198
Total liabilities 1,050,398,536 469,060,351 757,832,706 327,162 (893,843,039) 1,383,775,716
Equity - - 2,461,313 - 88,557,608 91,018,921
Total equity and liabilities 1,050,398,536 469,060,351 760,294,019 327,162 (805,285,431) 1,474,794,637

Contingencies and commitments 45,167,548 80,481,050 210,662,086 1,828,926 1,769,224 339,908,834

2023
Retail CIBG Treasury SAM Others Total
Profit and loss for the quarter
----------------------------------------------------------------------------------------------------------------------
ended March 31, 2023 Rupees '000 ------------------------------------------------------------------------------
(Un-audited)
External funded revenue (9,203,756) 11,806,382 10,507,065 53,820 (121,866) 13,041,645
Inter segment revenue - net 19,743,442 (11,573,757) (10,390,020) (52,082) 2,272,417 -
External non-funded revenue 1,690,863 398,819 1,206,465 (220,867) (351,877) 2,723,403
Total income 12,230,549 631,444 1,323,510 (219,129) 1,798,674 15,765,048

Segment direct expenses 5,176,989 243,165 49,684 29,931 2,531,785 8,031,554

Inter segment expense allocation 122,170 (78,956) (7,251) (35,963) - -
Total expenses 5,299,159 164,209 42,433 (6,032) 2,531,785 8,031,554
Provisions (66,269) (19,913) 1,385,343 69,315 (3,575) 1,364,901
Profit before tax 6,997,659 487,148 (104,266) (282,412) (729,536) 6,368,593
Statement of financial position
as at December 31, 2023
(Audited)
Cash and bank balances 30,486,904 - 55,362,053 - 114 85,849,071
Due from financial institutions - - - - - -
Investments 150,000 9,166,074 580,117,122 2,805,744 1,550,141 593,789,081
Investment provision - - (1,028,498) (2,805,744) - (3,834,242)
Net inter segment lending 846,815,880 - - - (846,815,880) -
Financing - performing 126,927,551 442,189,965 - - 8,584,421 577,701,937
Financing- non-performing 5,137,297 6,013,184 - 11,721,277 187,883 23,059,641
Financing- provisions (3,554,912) (4,720,383) - (11,644,505) (130,462) (20,050,262)
Others 21,892,608 12,862,528 35,499,058 216,609 44,298,885 114,769,688
Total assets 1,027,855,328 465,511,368 669,949,735 293,381 (792,324,898) 1,371,284,914

Due to financial institutions 11,110,677 75,277,296 80,498,830 - - 166,886,803

Subordinated Sukuk - - - - - -
Deposits and other accounts 947,772,275 70,100,426 - 392,278 - 1,018,264,979
Net inter segment borrowing - 319,258,252 584,231,018 (99,779) (903,389,491) -
Others 68,972,376 875,394 1,870,858 882 23,488,359 95,207,869
Total liabilities 1,027,855,328 465,511,368 666,600,706 293,381 (879,901,132) 1,280,359,651
Equity - - 3,349,029 - 87,576,234 90,925,263
Total Equity and liabilities 1,027,855,328 465,511,368 669,949,735 293,381 (792,324,898) 1,371,284,914

Contingencies and commitments 45,666,205 78,801,025 140,581,461 1,797,031 2,087,267 268,932,989

March 31, 2024 First Quarter 91

 40 RELATED PARTY TRANSACTIONS

92
The Group has related party transactions with its parent, employee benefit plans and its directors and key management personnel.

The Group enters into transactions with related parties in the ordinary course of business and on substantially the same terms as for comparable transactions with
persons 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.

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

March 31, 2024 (Un-audited) December 31, 2023 (Audited)

Key Key
Other Other

March 31, 2024

Parent Directors management Associates Parent Directors management Associates
related parties related parties
personnel personnel
---------------------------------------------------------------------------------------------------------------------- Rupees '000 --------------------------------------------------------------------------------------------------------------
For the quarter ended March 31, 2024

Investments
Opening balance - - - 3,419,532 2,009,039 - - - 2,429,472 3,268,466
Investment made during the year - - - 6,600,590 - - - - 38,504,537 -
Investment redeemed / sold during the year - - - (6,611,096) - - - - (37,644,184) (1,259,427)
Equity method adjustment - - - 93,667 - - - - 129,707 -
Closing balance - - - 3,502,693 2,009,039 - - - 3,419,532 2,009,039

Credit loss allowance for diminution in value of investments - - - - 1,396,155 - - - - 1,951,094

Islamic financing and related assets - net

Opening balance - 54 364,194 - 6,684,998 - 7 539,123 - 1,392,371
Addition during the period / year - 288 62,047 - 1,881,716 - 49 658,335 - 16,958,966
Repaid during the period / year - - (34,098) - (407,760) - (2) (833,264) - (11,666,339)
Transfer in / (out) - net - - 5,833 - - - - - - -
Closing balance - 342 397,976 - 8,158,954 - 54 364,194 - 6,684,998

Credit loss allowance held against Islamic financing

Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)

and related assets - - - - 407,688 - - - - 407,688

 March 31, 2024 (Un-audited) December 31, 2023 (Audited)
Key Key
Other Other
Parent Directors management Associates Parent Directors management Associates
related parties related parties
personnel personnel
---------------------------------------------------------------------------------------------------------------------- Rupees '000 --------------------------------------------------------------------------------------------------------------
Other assets
Profit / return accrued - - 14,140 - 99,634 - - 10,312 - 152,624
Commission income receivable - - - - - - - - - -
Receivable from defined benefit plan asset - - - - 247 - - - - 90,806
Remuneration receivable - - - 91,922 - - - - 90,979 -
Acceptances - net - - - - 6,217 - - - - -
Receivable against reimbursement of expenses - - - 133,163 - - - - 203,865 -
Receivable from defined contribution plan - - - - 601 - - - - 2,181
Front end load receivable - - - 65,830 - - - - 30,253 -
Preliminary expenses and floatation costs receivable - - - 5,762 - - - - 5,687 -
Receivable from 1link (Private) Limited - - - - 2,743,837 - - - - 2,320,075
For the quarter ended March 31, 2024

- - 14,140 296,677 2,850,536 - - 10,312 330,784 2,565,686

Deposits and other accounts

Opening balance 182 103,947 95,896 38,354,155 2,344,926 182 58,656 131,791 57,393 26,038,101
Received during the period / year - 66,177 860,711 439,266,698 21,974,915 - 232,893 1,975,111 983,701,499 49,904,615
Withdrawn during the period / year - (75,241) (846,687) (416,346,140) (23,486,965) - (187,602) (2,011,006) (945,404,737) (73,597,790)
Transfer in / (out) - net - - 1,856 - - - - - - -
Closing balance 182 94,883 111,777 61,274,713 832,876 182 103,947 95,896 38,354,155 2,344,926

Other liabilities
Profit / return payable - 1,066 737 505,531 13,045 - 931 386 684,274 24,669
Dividend Payable 2,625,723 - - - 965,960 4,923,232 - - - 1,811,176
Payable to 1link (Private) Limited - - - - 799,394 - - - - 595,002

March 31, 2024

2,625,723 1,066 737 505,531 1,778,400 4,923,232 931 386 684,274 2,430,847

Contingencies and commitments

Trade related commitments - - - - 380,963 - - - - 330,829
- - - - 380,963 - - - - 330,829

First Quarter
40.1
Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)

Balances pertaining to parties that were related at the beginning of the period but ceased to be so related during any part of the current period are not reflected as

93
part of the closing balance. The same are accounted for through the movement presented above.
 RELATED PARTY TRANSACTIONS

94
March 31, 2024 (Un-audited) March 31, 2023 (Un-audited)
Key Key
Other Other
Parent Directors management Associates Parent Directors management Associates
related parties related parties
personnel personnel

First Quarter
---------------------------------------------------------------------------------------------------------------------- Rupees '000 --------------------------------------------------------------------------------------------------------------

Income
Profit / return earned - - 6,854 - 124,889 - - 9,571 - 24,352
Fee and commission income - 46 26 385,374 2,451 - 28 35 3,790 1,499
Dividend income - - - 7,543 - - - - - 1,733

March 31, 2024

Net gain on sale of securities - - 106 4,541 239 - - 39 (6,451) (4,730)

Expense
Profit / return expensed - 2,610 930 1,519,163 83,330 - 1,605 2,472 101 507,092
For the quarter ended March 31, 2024

Reimbursement of expenses - - - 74,653 - - - - 3,018 119,470

Director's fee and allowances - 46,240 - - - - 42,740 - - -
Compensation expense - - 662,836 - 1,900 - - 415,459 - 488
Fee and subscription - - - - 312 - - - - 2,211
Charge for defined benefit plan - - - - 92,278 - - - - 71,519
Contribution to defined contribution plan - - - - 109,073 - - - - 85,634

Others
Shares / units purchased during the period - - - 173,641 - - - - - 154,372
Shares / units sold during the period - - - 179,444 - - - - - 126,629
Government securities purchased during the period - - 49,824 - 334,734 - - 226,983 - 1,460,842
Government securities sold during the period - - 30,000 - 48,700 - - 38,200 - -
Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

Un-audited Audited
Note March 31, December 31,
2024 2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
41 CAPITAL ADEQUACY, LEVERAGE RATIO & LIQUIDITY REQUIREMENTS

Minimum capital requirement (MCR):

Paid-up capital (net of losses) 15,176,965 15,176,965

Capital adequacy ratio (CAR):

Eligible common equity tier 1 (CET 1) capital 78,354,477 73,370,440

Eligible additional tier 1 (ADT 1) capital - -
Total eligible tier 1 capital 78,354,477 73,370,440
Eligible tier 2 capital 13,359,340 14,329,529
Total eligible capital (tier 1 + tier 2) 91,713,818 87,699,968

Risk weighted assets (RWAs):

Credit risk 337,421,671 336,510,451

Market risk 44,359,728 56,432,669
Operational risk 106,918,760 106,918,760
Total 488,700,159 499,861,879

Common equity tier 1 capital adequacy ratio 16.03% 14.68%

Tier 1 Capital adequacy ratio 16.03% 14.68%

Total Capital adequacy ratio 18.77% 17.54%

The Group has applied the transitional arrangement on Regulatory Capital. Had the transitional arrangement
not been applied then CAR would have been lower by 14 bps from 18.77% to 18.63%.

Leverage ratio (LR):

Eligible tier-1 capital 78,354,477 73,370,440

Total exposures 1,775,443,014 1,594,121,150
Leverage ratio (in %) 4.41% 4.60%

The Group has applied the transitional arrangement on Regulatory Capital. Had the transitional arrangement
not been applied than Leverage Ratio would have been lower by 19 bps from 4.41% to 4.22%.

Liquidity coverage ratio (LCR):

Total high quality liquid assets 650,055,814 517,942,201

Total net cash outflow 396,980,673 339,319,140
Liquidity coverage ratio (Ratio) 1.637 1.526

Net stable funding ratio (NSFR):

Total available stable funding 862,703,040 838,043,710

Total required stable funding 492,666,679 482,990,880
Net stable funding ratio (in %) 175.11% 173.51%

March 31, 2024 First Quarter 95

Notes to and forming part of the Condensed Interim Consolidated Financial Statements (un-audited)
For the quarter ended March 31, 2024

42 GENERAL

Comparative information has been re-classified, re-arranged or additionally incorporated in these condensed
interim consolidated financial statements, wherever necessary, to facilitate comparison and to conform with
changes in presentation in the current period. There have been no significant reclassifications during the
period.

43 NON-ADJUSTING EVENTS AFTER THE BALANCE SHEET DATE

The Board of Directors in its meeting held on April 25, 2024 has proposed an interim cash dividend of Rs.1 per
share (March 31, 2023: Nil). These interim condensed consolidated financial statements for the quarter ended
March 31, 2024 do not include the effect of these appropriations which will be accounted for subsequent to
the quarter end.

44 DATE OF AUTHORISATION FOR ISSUE

These condensed interim consolidated financial statements were authorised for issue on April 25, 2024 by the
Board of Directors of the Holding Company.

PRESIDENT & CEO CHIEF FINANCIAL OFFICER CHAIRMAN DIRECTOR DIRECTOR

96 First Quarter March 31, 2024