Earnings release
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CONTENTS Corporate Information Directors' Review Condensed Interim Unconsolidated Statement of Financial Position Condensed Interim Unconsolidated Statement of Profit and Loss Account Condensed Interim Unconsolidated Statement of Comprehensive Income Condensed Interim Unconsolidated Statement of Changes in Equity Condensed Interim Unconsolidated Cash Flow Statement Notes to and Forming Part of the Condensed Interim Unconsolidated Financial Information Condensed Interim Consolidated Statement of Financial Position Condensed Interim Consolidated Statement of Profit and Loss Account Condensed Interim Consolidated Statement of Comprehensive Income Condensed Interim Consolidated Statement of Changes in Equity Condensed Interim Consolidated Cash Flow Statement Notes to and Forming Part of the Condensed Interim Consolidated Financial Statements 03 04 13 14 15 16 18 19 50 51 52 53 55 56 01
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03 MEBL SEP-2025 CORPORATE INFORMATION AS OF SEPTEMBER 30, 2025 Chairman Vice Chairman Chairman President & CEO Deputy CEO Resident Shariah Board Member President & CEO (Executive Director) Riyadh S. A. A. Edrees Faisal Fahad AlMuzaini Irfan Siddiqui Board IFRS 9 Committee Mufti Muhammad Naveed Alam Syed Imran Ali Shah Muhammad Sohail Khan A. F. Ferguson & Co., Chartered Accountants Haidermota & Co. Advocates Resident Shariah Board Member Chief Financial Officer Company Secretary Auditors Legal Adviser Meezan House C-25, Estate Avenue, SITE, Karachi - 75730, Pakistan Phone: (92-21) 38103500, 37133500, Fax: (92-21) 36406056 24/7 Call Centre: (92-21) 111-331-331 & 111-331-332 Registered Office and Head Office info@meezanbank.comE-mail www.meezanbank.com www.meezanbank.pk Website THK Associates (Pvt.) Ltd Plot No, 32-C, Jami Commercial, Street 2, DHA, Phase VII, Karachi - 75500, Pakistan Phone: (92-21) 111-000-322, 35310191-6 Email: secretariat@thk.com.pk, sfc@thk.com.pk Website: www.thk.com.pk Shares Registrar Riyadh S. A. A. Edrees Bader H. A. M. A. AlRabiah Saad Ur Rahman Khan Faisal Fahad AlMuzaini Tariq Mahmood Pasha Zine Elabidine Bachiri Mohammad Abdul Aleem Nausheen Ahmad Abdulrazzaq T.A.M. Razooqi Irfan Siddiqui Board of Directors Justice (Retd.) Muhammad Taqi Usmani Dr. Muhammad Imran Ashraf Usmani Sheikh Esam Mohamed Ishaq Mufti Zubair Ahmed Mufti Muhammad Naveed Alam Shariah Board Irfan Siddiqui Syed Amir Ali Management Mohammad Abdul Aleem Saad Ur Rahman Khan Tariq Mahmmod Pasha Abdulrazzaq T.A.M. Razooqi Board Audit Committee Saad Ur Rahman Khan Bader H. A. M. A. AlRabiah Zine Elabidine Bachiri Abdulrazzaq T.A.M. Razooqi Board Risk Management Committee Saad Ur Rahman Khan Riyadh S. A. A. Edrees Bader H. A. M. A. AlRabiah Irfan Siddiqui Board Information Technology Committee Riyadh S. A. A. Edrees Mohammad Abdul Aleem Nausheen Ahmad Board Human Resources, Remuneration & Compensation Committee
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DIRECTORS' REVIEW The Board of Directors is pleased to present the condensed interim unaudited unconsolidated and consolidated financial statements of Meezan Bank Limited for the quarter and nine months ended September 30, 2025. Pakistan’s economy maintained its recovery momentum through FY2025, supported by the stabilisation measures introduced to address the severe macroeconomic challenges faced between 2022 and 2024. The ongoing improvement reflects a combination of prudent fiscal management, disciplined monetary policy stance and the initiation of long-awaited structural reforms aimed at restoring investor confidence and strengthening long-term economic resilience. A notable develop- ment during the year was progress in the energy sector, where reforms to reduce inefficiencies and fiscal leakages have improved medium-term sustainability. Alongside a more stable political environment and a stronger external position, these factors have collectively supported a more optimistic economic outlook. During FY2025, Pakistan’s real GDP grew by 2.68%, reflecting the positive impact of broad-based stabilisation measures across key macroeconomic segments. Notable resilience was observed on the fiscal, monetary, and external fronts, supported by enhanced revenue mobilisation, prudent public expenditure management and a reduction in the fiscal deficit. Inflationary pressures, which had peaked at historic levels in FY2023, eased considerably during FY2025. Consumer Price Index (CPI) inflation had declined to 5.6% for the month of September 2025, reflecting a marked improvement in overall price stability. This disinflationary trend allowed the State Bank of Pakistan (SBP) to adopt a more accommodative monetary policy stance, resulting in a cumulative reduction of 1,100 basis points in the policy rate—from 22% in June 2024 to 11% by May 2025. This substantial monetary easing is expected to support a recovery in private sector credit, while also stimulating domestic investment and consumer demand. However, the SBP has cautioned that temporary upward pressure on prices may re-emerge due to supply chain disrup- tions in food items following the recent floods. Financial markets responded favourably to the improving macroeconomic environment. The Pakistan Stock Exchange (PSX) reached an all-time high, closing at 165,494 points by the end of September 2025—an impressive increase of 44% compared to 115,127 points at the end of 2024. This market rally was driven by a combination of declining interest rates, robust corporate earnings and renewed investor confidence in the Government’s reform agenda. External sector indicators also strengthened further. Workers’ remittances rose to $9.5 billion in the first quarter of FY2026 — up 8.4% from $8.8 billion in the comparative period last year — reflecting both policy measures and a rebound in regional labour markets. In May 2025, the International Monetary Fund (IMF) approved the disbursement of a $1 billion tranche under the Extended Fund Facility (EFF), reaffirming Pakistan’s commitment to reform and unlocking additional multilateral and bilateral support. As a result, Pakistan’s overall forex reserves increased by 24%, reaching $19.8 billion by September end 2025, up from $16 billion at the end of CY2024. The Pakistani Rupee (PKR) exhibited relative stability during the period, depreciating marginally to PKR 281.3 per USD by September 2025, compared to PKR 278.6 in December 2024. This orderly adjustment reflected strengthened external buffers, improved foreign exchange liquidity, and greater transparency in exchange rate management. Overall, the macroeconomic outlook for Pakistan looks increasingly positive. Key indicators such as declining inflation, reduced interest rates, strengthening foreign exchange reserves collectively signal a supportive environment for sustained growth. However, downside risks remain — includ- ing external vulnerabilities linked to global commodity prices, geopolitical tensions and shifts in global monetary policy as well as domestic developments that could drastically impact the econo- my such as the 2025 Pakistan floods. Sustained progress on structural reforms, especially in the energy and taxation sectors, together with continued improvements in governance and institution- al capacity, will remain critical for maintaining macroeconomic stability and fostering inclusive, long-term growth. Economy 04
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By the grace of Allah Almighty, Meezan Bank continued to deliver resilient performance during the first nine months of 2025. The Bank reported a Profit After Tax of Rs 67.2 billion, compared to Rs 77.1 billion in the corresponding period of the previous year — reflecting a 13% decline primarily due to a significantly lower policy rate environment, implementation of minimum deposit rate on Islamic Banks and an increase in the applicable tax regime. Basic Earnings per Share (EPS) stood at Rs 37.42 as of September 2025, against Rs 43.00 in the same period last year. The Bank maintained a strong Return on Equity (ROE) of 34.6% and Return on Assets (ROA) of 2.2% for the period under review. Alhamdulillah, the Bank consistently has one of the best ROEs in the industry, in line with its commit- ment to deliver sustainable value to shareholders. Our consistent profitability coupled with a disciplined approach to balancing dividend payouts with profit retention, has resulted in strong internal capital generation. As a result, the Bank’s Capital Adequacy Ratio (CAR) remains strong at over 23%, well above the regulatory requirement. The Board is pleased to announce an interim cash dividend of Rs 7.00 (70%) for the third quarter bringing the total cash dividend payout for the nine months ended September 30, 2025 to Rs 21.00 per share (210%) as Rs 14.00 per share (140%) interim cash dividend was paid for the first half year. The Bank continued its longstanding tradition of declaring dividends every year since its listing on the Pakistan Stock Exchange. Meezan Bank has upheld its position as the second most valuable bank in Pakistan, with a market capitalization of $2.8 billion as of September 30, 2025. This reflects the continued confidence of investors in the Bank’s leadership, operational performance and prospects for sustainable growth. The financial highlights of Meezan Bank for the period are presented below: Financial Highlights DIRECTORS' REVIEW 05 Jan - Sep 2025 312,114 (123,886) 188,228 25,769 213,997 (62,736) 151,261 (3,634) 147,627 (80,402) 67,226 37.42 1,073 Jan - Sep 2024 378,333 (164,189) 214,144 18,208 232,352 (66,849) 165,503 (1,900) 163,603 (86,540) 77,063 43.00 1,015 (18%) (25%) (12%) 42% (8%) (6%) (9%) (91%) (10%) (7%) (13%) (13%) 6% Growth % Rupees in millions Profit & Loss Account Profit / return earned on financing, investments and placements Profit on deposits and other dues expensed Net spread earned Fee, commission and other non -funded income Operating income Operating and other expenses Profit before credit loss allowance / provisions Credit loss allowance and write offs - net Profit before tax Taxation Profit after tax Basic Earnings per share - Rupees Number of branches September 30, 2025 4,235,975 2,512,825 1,174,377 3,176,286 37.0% 272,796 3,902,073 1,870,536 1,556,362 2,584,871 60.2% 246,984 9% 34% (25%) 23% (23%) 10% December 31, 2024 Growth % Rupees in millions Statement of Financial Position Total Assets Investments Islamic financing and related assets - Gross Deposits ADR (Gross Advances to Deposits)- % Equity
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The Bank continued its growth trajectory in deposit portfolio by registering a growth of 23% in first nine months of 2025 and reported total deposits of Rs 3.18 trillion as of September 30, 2025. Current Account (CA) deposits comprise almost half of the total deposit portfolio, totalling Rs 1.56 trillion. Meanwhile, Current and Savings Account (CASA) deposits collectively represent 94% of the deposit base, amounting to Rs 2.98 trillion. As of September 2025, total assets stood at Rs 4.2 trillion, reflecting a 9% increase over December 2024. The investment portfolio expanded significantly by 34% over December 2024, reaching Rs 2.5 trillion. This growth is primarily attributable to the regular Sukuk auctions conducted by the Government of Pakistan which have helped ease the liquidity management challenges historical- ly faced by the Islamic Banking Industry (IBI). Conversely, the gross financing portfolio declined by 25% from Rs 1.56 trillion in December 2024 to Rs 1.17 trillion at the end of the current period. Meezan Bank continues to demonstrate exemplary asset quality, outperforming industry bench- marks with a Non-Performing Financing (NPF) ratio of 2.6%. The Bank maintains a strong provisioning position against non-performing financings, resulting in a coverage ratio exceeding 146%. Returns from financing, investments and placements declined to Rs 312 billion during the period under review, compared to Rs 378 billion in the corresponding period of the previous year. This decrease is primarily attributable to the lower policy rate. For the nine months’ period under review, the average Policy Rate stood at 11.6% marking a substantial reduction of 946 basis points from 21.0% in September 2024. Similarly, expense on Deposits and Other Dues declined to Rs 124 billion, compared to Rs 164 billion in September 2024, reflecting a 25% decrease. Fee, commission and other income recorded strong growth, increasing by 42% to Rs 25.8 billion from Rs 18.2 billion in September 2024. Core fee and commission income rose by 9% to Rs 16.8 billion, driven primarily by higher contributions from trade handling and branch banking fees. Operating and other expenses experienced a decrease (6%) from Rs 66.8 billion to Rs 62.7 billion mainly due to lower variable compensation expense. Meezan Bank’s mobile application continues to lead the digital banking landscape, upholding its strong reputation for user-friendliness, speed and high availability. With a growing user base, the app remains a vital platform for customers seeking efficient and seamless banking services. The app's consistently high performance is further validated by its sustained top-tier ratings on both the Google Play Store and Apple App Store over the past five years. Meezan Bank remains committed to its digital transformation strategy, focused on enhancing customer experience and optimizing back-office operations. Following its hybrid growth model, the Bank has expanded its physical footprint in underserved regions while actively onboarding customers through digital channels. Our strategically dispersed branch network now includes 1,073 branches nationwide. The VIS Credit Rating Company Limited has reaffirmed Meezan with the highest possible credit rating - 'AAA' (Triple A) rating for the Long Term and an 'A1+' (A-One Plus) rating for the Short Term, maintaining a stable outlook. DIRECTORS' REVIEW 06
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Outlook Meezan Bank remains steadfast in its commitment to supporting the economic growth and financial stability of the country by continuing to lead the development of Islamic Banking. Our strategic initiatives are closely aligned with the Government’s policy priorities on Islamic Finance and comply fully with the Honourable Federal Shariat Court’s directive to transition towards a completely Shariah-compliant financial system. Our growth strategy emphasizes maintaining a prudent and balanced approach, diversifying across key sectors, and consistently surpassing regulatory standards for financial stability. We are actively expanding our presence through both physical branch networks and digital platforms, with a strong focus on enhancing the quality of our digital services to consolidate our position as an industry leader. During the current year, the Bank has encountered several emerging challenges, including the effects of a reduced policy rate, the implementation of a Minimum Deposit Rate (MDR) on Savings Deposits and a persistently high tax environment. In response to these pressures, the Bank has strategically prioritized the growth of its core deposit base to mitigate their impact and sustain financial resilience. We extend our sincere gratitude to the State Bank of Pakistan, the Ministry of Finance and the Securities and Exchange Commission of Pakistan for their unwavering dedication to promoting a sustainable Islamic financial system in Pakistan. Our significant accomplishments during the year would not have been possible without the proactive support of our diverse customer base, to whom we offer our heartfelt thanks. We also wish to express our deep appreciation to the Board of Directors, members of the Shariah Board, our shareholders and the holders of Additional Tier I Sukuk and Subordinated Sukuk (Tier II) for their continued trust and support, which have been instrumental in establishing Meezan Bank as the country’s premier Islamic banking institution. The Board wishes to express its heartfelt appreciation to every member of our dedicated team for their exemplary efforts and unwavering commitment to advancing the mission of Islamic banking. Above all, we humbly acknowledge and offer our profound gratitude to Allah Almighty for His continued blessings upon the Bank and all its stakeholders. These blessings have been fundamental in enabling our significant achievements within a relatively short period. We earnestly seek His ongoing guidance and support, praying for the strength and wisdom to fulfil our vision of establishing “Islamic banking as banking of first choice. ” On behalf of the Board DIRECTORS' REVIEW Lahore: October 24, 2025 Chairman Riyadh S.A.A. Edrees President & CEO Irfan Siddiqui 07
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08 ،2025�30�� ��� � � ����� ���� �� � � �� � �� �� � 2024 � 2022� � � 2025���� � � ﭼیﻠﻨﺠﻮں�� � � � � در � � � �� � � ����� ����� � � � ر � �� � � آ � � �� �� ���� � �� � �2.68 �� (GDP� � �� �� �� � �� � 2025� �� � � � �� � � �� �� 2025� ��� � �� � ��� �� 2023� � ا �ﻗیﻤﺘــﻮں �� �� � �5.6� � ( اCPI) اﻧﮉیﮑــﺲ � ����� � � � (SBP� ��� � � � �22 �� 2024�� � �� 1,100��� �� � � �� � �11 � � � �� 2025� � � SBP� � � � � � � � � �� �� �� ��� ��� � 2025 � � (PSX ر ���� ����� � 115,127� 2024� �� � � ��� � � 165,494ا �� � � � � �� � �44 �� �� ا �� � ����� ﻣﻘیــﻢ� � �� �� �� � � � 2026�� �� � � � �8.4� � ��8.8� �� �� � � � �� 9.5���� � � � � �� �� 2025�� � � ا � � �� 1 � � (EFF) ��� � ��� ��� � (IMFا � ���� � � � � 2025�� � �24 �� � � ���� �� � � � � اس � (PKR� � �� 16� 2024� ﮐیﻠﻨــﮉر� � ��19.8 �� 2025 اﻧﺴــﺒﺘﺎﹰ اس رو278.6 �� 2024 رو281.3 ��� �
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� � � �� � �� �� ���� � � � � � �� � ا ﮐﻠیــﺪی� �� �� �� � � زر ���� � �� ���� ��� � � � ﻗیﻤﺘﻮں� ���� � 2025� � �� ��� �� ����� ر � � � � آ � � � � �� � � � ادارہ ��� ��� � � � ��������� ����� � (9) � � � 2025ا �� � � � � �� 67.2ا � �� � ���� ���� � �� � � 13� � �� 77.1 �� �� � �� �� 2025� � � � � رو43.00( روEPS) 37.42� Return on)2.2� � � � (Return on Equity) 34.6دوران ا � � � � � �� � � (Assets � � �� � اداروں � � � � � � � �� � �� � � (Capital Adequacy Ratio) 23� ��� � � � ����� � �� �� ﻧﺘیﺠﺘــﺎﹰ، � � ڈ � (�� � � 70 رو7.00�� � � ڈ � (9�� � � 2025 � 30� � رو14.00� � � (�� � � 210 رو21.00 � � � ڈ � (�� � � 140) � � � ��� � � � ﻟﺴﭩﻨﮏ���� � �� �� � � � � �� �� �� ﻗیﻤﺘــیر � �� � � � �� 8.2 �� 2025 � 30 � � ���� � ������������ � �� � �� � اور
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10 ز 30 ، 5202 4,235,975 2,512,825 1,174,377 3,176,286 37.0% 272,796 312,114 (123,886) 188,228 25,769 213,997 (62,736) 151,261 (3,634) 147,627 (80,402) 67,226 37.42 1,073 378,333 (164,189) 214,144 18,208 232,352 (66,849) 165,503 (1,900) 163,603 (86,540) 77,063 43.00 1,015 (18%) (25%) (12%) 42% (8%) (6%) (9%) 91% (10%) (7%) (13%) (13%) 6% 3,902,073 1,870,536 1,556,362 2,584,871 60.2% 246,984 9% 34% (25%) 23% (23%) 10% 2025�2024�
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11 ���� � �� � � (9) � � � 2025� �� � �� �� � � ��� 3.18�� �� 2025 � 30�� � � 23ر � � ���1.56( ڈCAا � � ��� 2.98� �� �� � �94( ڈCASA���� �� �� � 2024� � ���4.2� 2025 � ���� � �� � �34 �� �� � 2024�� � � 9 � ��� � � � ﺻﮑﻮک�� � � ���2.5�� �� � � �� � � � �� � ������ ﻟیﮑﻮیﮉیﭩی � � � ﺑیﻨﮑﺎری� � ����� � � � ��� 1.56 �� 2024� �� � � 25� ���� دى۔ اس � � ���1.17� �� �� �� � �2.6�� � � �� � د � �� � �146� �� � � � � � � � ��� � �� � � �� � � � ر � � �� 312�� �� � ﺗﻌیﻦ،ﻓﻨﺎﻧﺴﻨﮓ ( 9�� � � �� 378� �� �� � �� 946 یﻌﻨــی� �� � � 21.0 �� 2024�� � � 11.6� � � ��124� � � � ���� ���� � �� � � 25� � �� 164 �� 2024 � � �� 18.2 � 2024� � � � � ��16.8�� �� �� � �9� � �� �� � � 42 یﻌﻨی� � �� 25.8 � �� � � �� � � �� � � ��62.7� � �� 66.8� �� � � 6� � ا � � �� � �� � � � �� � ��������� � ڈ ایﭙﻠیﮑیﺸﻦ�� �� � � ��� � � ا � � � � � � � � �� ���� ���� �� ا � � � ��� ڈیﺠیﭩــﻞ�� �� � ��� � �� � � ���� � � �� � � � � � � ���������� � ڈ ��� 1,073اب
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12 ���) 'AAA�� ��� � � ��� � �� ���VIS � � ' )اے ون A1+اے( اور � � � � � � ﺑیﻨــﮑﺎری � � �� � �� �� �� ��� � � �� � � ﮐﻠیــﺪی � � � ��� � �� � � �� �� �� �� ڈیﺠیﭩــﻞ � ﭘﻠیــﭧ ڈیﺠیﭩــﻞ ��� � �� � � � � � � � � �� � ﭼیﻠﻨﺠﻮںاس ��� � � � � � � � ������� � � � �� �� � � (SECP ا ﺳــیﮑیﻮرﭨیﺰ �� � (، وزارتِSBP� ﺗﺤﺴــیﻦ� � �� � �� � � � � � � � �� � � �� �� � � �� � � ��� � � � � �� �� �� � � ��ﺗﺤﺴیﻦ� � اور ﺻﮑﻮک���� � ��� � � � � � ��� � � � � � ﺑیﻨــﮑﺎری��� � � � � � ���� � � �� ﺗﺤﺴــیﻦ � � �� �� �� ﻗﻠیــﻞ� � �� � � ﺑیﻨــﮑﺎری � ﺑیﻨــﮑﺎری � �� ���� � ��� ���� ا �� 2025 ا24
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Cash and balances with treasury banks Balances with other banks Due from /f_inancial institutions Investments Islamic /f_inancing and related assets Property and equipment Right-of-use assets Intangible assets Deferred tax assets Other assets Total Assets 13 September 30, 2025 (Unaudited) Rupees in 000 December 31, 2024 (Audited) ASSETS LIABILITIES Bills payable Due to financial institutions Deposits and other accounts Lease liability against right-of-use assets Sub-ordinated sukuks Deferred tax liabilities Other liabilities Total Liabilities NET ASSETS Share capital Reserves Surplus on revaluation of assets - net of tax Unappropriated profit The annexed notes 1 to 42 form an integral part of these unconsolidated condensed interim financial statements. REPRESENTED BY CONTINGENCIES AND COMMITMENTS 260,734,258 13,424,950 34,964,299 1,870,535,620 1,514,755,936 46,847,734 21,230,197 2,896,880 - 136,683,257 3,902,073,131 112,605,407 722,286,318 2,584,871,300 25,848,322 20,990,000 14,211,335 174,276,157 3,655,088,839 246,984,292 17,947,407 48,002,267 22,141,192 158,893,426 246,984,292 279,155,077 19,193,486 42,503,857 2,512,825,474 1,129,211,868 49,028,840 21,177,411 3,311,806 - 179,566,719 4,235,974,538 59,890,731 499,087,518 3,176,286,193 27,417,046 16,990,000 3,637,112 179,869,886 3,963,178,486 272,796,052 18,005,546 55,578,845 17,252,832 181,958,829 272,796,052 Note 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 AS AT SEPTEMBER 30, 2025 CONDENSED INTERIM UNCONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED) Syed Imran Ali Shah Chief Financial OfficerDirector Mohammad Abdul Aleem Director Bader H.A.M.A. AlRabiah President & Chief Executive Irfan Siddiqui Chairman Riyadh S. A. A. Edrees
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Syed Imran Ali Shah Chief Financial OfficerDirector Mohammad Abdul Aleem Director Bader H.A.M.A. AlRabiah President & Chief Executive Irfan Siddiqui Chairman Riyadh S. A. A. Edrees 14 Profit / return earned on Islamic financing and related assets, investments and placements Profit / return on deposits and other dues expensed Net profit / return The annexed notes 1 to 42 form an integral part of these unconsolidated condensed interim financial statements. OTHER INCOME Fee and commission income Dividend income Foreign exchange income Gain on securities Net gains on derecognition of financial assets measured at amortised cost Other income Total other income Total income OTHER EXPENSES Operating expenses Workers welfare fund Other charges Total other expenses Profit before credit loss allowance / provisions Credit loss allowance / provisions and write offs / (reversal of provisions / credit loss allowance) - net Extra ordinary / unusual items Profit before taxation Taxation Profit after taxation FOR THE QUARTER AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 CONDENSED INTERIM UNCONSOLIDATED ST A TEMENT OF PROFIT AND LOSS ACCOUNT (UNAUDITED) Note 24 25 26 27 28 29 29.1 30 31 32 33 34 Basic earnings per share Diluted earnings per share Quarter ended September 30, 2025 Quarter ended September 30, 2024 (Restated) 128,665,073 52,011,635 76,653,438 5,891,413 150,473 28,341 167,907 - 288,837 6,526,971 83,180,409 21,777,110 1,207,524 294,958 23,279,592 59,900,817 2,572,228 - 57,328,589 31,709,576 25,619,013 14.28 14.18 102,587,804 40,115,700 62,472,104 5,910,624 40,623 2,750,426 358,341 - 316,328 9,376,342 71,848,446 25,321,509 1,083,017 3,466 26,407,992 45,440,454 255,422 - 45,185,032 24,123,042 21,061,990 11.70 11.63 Rupees Rupees Nine Months period ended September 30, 2025 Nine Months period ended September 30, 2024 (Restated) (Restated) (Restated) 378,333,126 164,188,852 214,144,274 15,358,335 1,069,021 607,885 282,699 - 890,100 18,208,040 232,352,314 62,987,150 3,433,665 428,477 66,849,292 165,503,022 1,900,027 - 163,602,995 86,539,799 77,063,196 312,113,701 123,885,748 188,227,953 16,783,494 924,760 5,988,493 1,027,645 - 1,044,895 25,769,287 213,997,240 59,424,668 3,252,033 59,195 62,735,896 151,261,344 3,634,014 - 147,627,330 80,401,536 67,225,794 43.00 42.74 37.42 37.20
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Syed Imran Ali Shah Chief Financial OfficerDirector Mohammad Abdul Aleem Director Bader H.A.M.A. AlRabiah President & Chief Executive Irfan Siddiqui Chairman Riyadh S. A. A. Edrees 15 Nine Months period ended September 30, 2025 Nine Months period ended September 30, 2024 FOR THE QUARTER AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 CONDENSED INTERIM UNCONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) Profit after taxation for the period Other comprehensive income / (loss) Items that may be reclassified to statement of profit and loss account in subsequent periods: - Movement in surplus / (deficit) on revaluation of debt investments through FVOCI - net of tax - Gain on sale of debt investments carried at FVOCI – reclassified to the statement of profit and loss account - net of tax Items that will not be reclassified to the statement of profit and loss account in subsequent periods: - Movement in surplus on revaluation of equity investments through FVOCI - net of tax Total Comprehensive Income for the period The annexed notes 1 to 42 form an integral part of these unconsolidated condensed interim financial statements. 77,063,196 5,994,714 (145,286) 604,892 83,517,516 67,225,794 (5,730,488) (475,687) 1,556,044 62,575,663 Rupees in ‘000 Quarter ended September 30, 2025 Quarter ended September 30, 2024 25,619,013 8,902,538 (86,373) 7,533 34,442,711 21,061,990 (1,372,596) (161,326) 1,226,908 20,754,976 (Restated) (Restated)
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16 CONDENSED INTERIM UNCONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 Balance as at January 01, 2024 (Audited) Impact of adoption of IFRS 9 - net of tax Pro/f_it after taxation for the nine months period ended September 30, 2024 - Restated Other comprehensive income / (loss) for nine months period ended September 30, 2024 - net of tax - Movement in surplus on revaluation of investments in debt instruments at FVOCI - net of tax - Loss on sale of debt investments carried at FVOCI reclassi/f_ied to statement of pro/f_it or loss account - net of tax - Movement in surplus on revaluation of equity investments carried at FVOCI - net of tax Total other comprehensive income / (loss) - net of tax Transfer from surplus on revaluation of assets to unapprorpriated pro/f_it - net of tax Recognition of share based compensation Other appropriations Transfer to statutory reserve* Transactions with owners recognised directly in equity Final cash dividend for the year 2023 @ Rs 8 per share First interim cash dividend for the year 2024 @ Rs 7 per share Second interim cash dividend for the year 2024 @ Rs 7 per share Issue of 3,487,520 shares under the Employees shares option scheme (note 34.2) Balance as at September 30, 2024 (Unaudited) - restated Capital reserves Share premium Statutory reserve * Non - Distributable Capital Reserve - Gain on Bargain Purchase Employee share option compensation reserve General reserve Revenue reserve Unappro- priated profit Total Investments Non- banking Assets Surplus / (deficit) on revalution of 2,626,441 - - - - - - - - - - - - - 477,812 3,104,253 30,617,082 - - - - - - - - 7,706,320 - - - - - 38,323,402 3,117,547 - - - - - - - - - - - - - - 3,117,547 654,321 - - - - - - - 422,024 - - - - - (299,231) 777,114 66,766 - - - - - - - - - - - - - - 66,766 10,920,597 1,188,390 - 5,994,714 (145,286) 604,892 6,454,320 (512,979) - - - - - - - 18,050,328 - - - - - - - - - - - - - - - - 118,992,231 25,760 77,063,196 - - - - 512,979 - (7,706,320) (14,330,026) (12,538,773) (12,563,185) (39,431,984) 45,432 149,501,294 184,907,517 1,214,150 77,063,196 5,994,714 (145,286) 604,892 6,454,320 - 422,024 - (14,330,026) (12,538,773) (12,563,185) (39,431,984) 258,888 230,888,111 Rupees in 000 Share capital 17,912,532 - - - - - - - - - - - - - 34,875 17,947,407 Pro/f_it after taxation for the quarter ended December 31, 2024 - Restated Other comprehensive income / (loss) for the half year ended December 31, 2024 - net of tax - Movement in surplus on revaluation of investments in debt instruments at FVOCI - net of tax - Loss on sale of debt investments carried at FVOCI reclassi/f_ied to statement of pro/f_it or loss account - net of tax - Remeasurement loss on de/f_ined bene/f_it obligations - net of tax - Movement in surplus on revaluation of equity investments carried at FVOCI - net of tax Total other comprehensive income - net of tax Transfer from surplus on revaluation of assets to unapprorpriated pro/f_it - net of tax Recognition of share based compensation Other appropriations Transfer to statutory reserve* Transactions with owners recognised directly in equity Third interim cash dividend for the year 2024 @ Rs 7 per share Balance as at December 31, 2024 (Audited) - - - - - - - - - - 3,104,253 - - - - - - - - 2,444,432 - 40,767,834 - - - - - - - - - - 3,117,547 - - - - - - - 168,753 - - 945,867 - - - - - - - - - - 66,766 - 4,096,974 (1,468,194) - 1,626,243 4,255,023 (164,159) - - - 22,141,192 - - - - - - - - - - - 24,444,328 - - (208,738) - (208,738) 164,159 - (2,444,432) (12,563,185) 158,893,426 24,444,328 4,096,974 (1,468,194) (208,738) 1,626,243 4,046,285 - 168,753 - (12,563,185) 246,984,292 - - - - - - - - - - 17,947,407
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Syed Imran Ali Shah Chief Financial OfficerDirector Mohammad Abdul Aleem Director Bader H.A.M.A. AlRabiah President & Chief Executive Irfan Siddiqui Chairman Riyadh S. A. A. Edrees 17 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 CONDENSED INTERIM UNCONSOLIDATED STATEMENT OF CHANGES IN EQUITY *This represents reserve created under section 21(i)(b) of the Banking Companies Ordinance,1962. The annexed notes 1 to 42 form an integral part of these unconsolidated condensed interim financial statements. Balance as at December 31, 2024 (Audited) Profit after taxation for the nine months period ended September 30, 2025 Other comprehensive income / (loss) for nine months period ended September 30, 2025 - net of tax Movement in deficit on revaluation of investments in debt instruments at FVOCI - net of tax Loss on sale of debt investments at FVOCI reclassified to statement of profit or loss - net of tax Movement in surplus on revaluation of investments in equity instruments at FVOCI - net of tax Total other comprehensive loss - net of tax Transfer from surplus on revaluation of assets to unappropriated profit - net of tax Recognition of share based compensation Other appropriations Transfer to statutory reserve* Transactions with owners recognised directly in equity Final cash dividend for the year 2024 @ Rs 7 per share First interim cash dividend for the year 2025 @ Rs 7 per share Second interim cash dividend for the year 2025 @ Rs 7 per share Issue of 5,813,938 shares under the Employees shares option scheme (note 34.2) Balance as at September 30, 2025 (Unaudited) Capital reserves Share premium Statutory reserve * Non - Distributable Capital Reserve - Gain on Bargain Purchase Employee share option compensation reserve General reserve Revenue reserve Unappro- priated profit Total Investments Non- banking Assets Surplus / (deficit) on revalution of 3,104,253 - - - - - - - - - - - - 774,981 3,879,234 40,767,834 - - - - - - - 6,722,579 - - - - 47,490,413 3,117,547 - - - - - - - - - - - - 3,117,547 945,867 - - - - - - 548,841 - - - - - (469,823) 1,024,885 66,766 - - - - - - - - - - - - 66,766 22,141,192 - (5,730,488) (475,687) 1,556,044 (4,650,131) (238,229) - - - - - - 17,252,832 - - - - - - - - - - - - - - 158,893,426 67,225,794 - - - - 238,229 - (6,722,579) (12,563,185) (12,563,185) (12,603,883) (37,730,253) 54,212 181,958,829 246,984,292 67,225,794 (5,730,488) (475,687) 1,556,044 (4,650,131) - 548,841 - (12,563,185) (12,563,185) (12,603,883) (37,730,253) 417,509 272,796,052 Rupees in 000 Share capital 17,947,407 - - - - - - - - - - - - 58,139 18,005,546
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18 The annexed notes 1 to 42 form an integral part of these unconsolidated condensed interim financial statements. FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 CONDENSED INTERIM UNCONSOLIDATED CASH FLOW STATEMENT (UNAUDITED) Nine Months period ended September 30, 2025 Nine Months period ended September 30, 2024 (Restated) Rupees in 000 Note CASH FLOW FROM OPERATING ACTIVITIES Profit before taxation Less: Dividend income Adjustments: Depreciation Net profit / return Amortisation Depreciation on right-of-use assets Amortisation of lease liability against right-of-use assets Credit loss allowance / provisions and write offs / (reversal of provisions / credit loss allowance) - net Share based compensation expense Unrealised (gain) / loss - FVTPL Gain on sale of property and equipment Decrease / (increase) in operating assets Due from financial institutions Islamic financings and related assets Other assets (excluding advance taxation and profit receivable) Increase in operating liabilities Bills payable Due to financial institutions Deposits and other accounts Other liabilities (excluding current taxation and profit payable) 29 29 29 25 31 27 28 18 34.2 31 35 Net profit / return received Net profit / return paid Income tax paid Net cash generated from operating activities CASH FLOW FROM INVESTING ACTIVITIES Net (investments) / divestments in amortised cost securities Net investments in securities classified as FVOCI Net investments in securities classified as FVTPL Net investment in associates Investment in subsidiaries Dividends received Investments in property and equipment Investments in intangible assets Proceeds from sale of property and equipment Net cash used in investing activities CASH FLOW FROM FINANCING ACTIVITIES Payment of lease liability against right-of-use assets Redemption of subordinated sukuks Proceed against issue of shares Dividend paid Net cash used in financing activities Net Increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Expected credit loss allowance on cash and cash equivalents - net Cash and cash equivalents at the end of the period 163,602,995 (1,069,021) 162,533,974 4,338,477 (216,956,272) 500,516 1,942,379 2,811,998 1,900,027 422,024 6,206 (304,852) (205,339,497) (42,805,523) - (130,770,248) (2,683,250) (133,453,498) 4,176,313 (38,021,821) 342,398,514 10,830,812 319,383,818 143,124,797 329,556,431 (164,754,419) (87,382,688) 220,544,121 (20,984,249) (136,445,223) 5,256,087 (14,032) (1,000,000) 1,034,604 (10,791,746) (938,459) 493,777 (163,389,241) (3,031,994) - 258,888 (40,257,918) (43,031,024) 14,123,856 251,384,492 (32,038) 251,352,454 265,476,310 147,627,330 (924,760) 146,702,570 5,225,439 (191,308,782) 592,403 2,123,652 3,080,829 3,634,014 548,841 (15,546) (376,027) (176,495,177) (29,792,607) (7,539,771) 382,027,063 (5,825,757) 368,661,535 (52,714,676) (222,315,884) 591,414,893 381,336 316,765,669 655,634,597 275,237,878 (126,140,802) (75,450,144) 729,281,529 (133,798,202) (522,393,781) 3,739,677 - - 901,102 (7,484,529) (1,007,329) 734,636 (659,308,426) (3,582,971) (4,000,000) 417,509 (37,731,007) (44,896,469) 25,076,634 272,075,918 (4,363) 272,071,555 297,148,189 Syed Imran Ali Shah Chief Financial OfficerDirector Mohammad Abdul Aleem Director Bader H.A.M.A. AlRabiah President & Chief Executive Irfan Siddiqui Chairman Riyadh S. A. A. Edrees
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19 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) International Accounting Standard "Interim Financial Reporting" , International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as are notified under the Companies Act, 2017; Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan (ICAP) as are notified under the Companies Act, 2017; Provisions of and directives issued under the Banking Companies Ordinance, 1962 and the Compa- nies Act, 2017; and Directives issued by the State Bank of Pakistan (SBP) and the Securities Exchange Commission of Pakistan (SECP). - - - - 3 These unconsolidated condensed interim financial statements (here-in-after referred to as "financial statement") have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of: 3.1 STATEMENT OF COMPLIANCE 1 Meezan Bank Limited (the Bank) was incorporated in Pakistan on January 27, 1997, as a public limited company under the provisions of the repealed Companies Ordinance, 1984 (now the Companies Act, 2017), and its shares are quoted on the Pakistan Stock Exchange Limited. The Bank was registered as an ‘Investment Finance Company’ on August 8, 1997, and carried on the business of investment banking as permitted under SRO 585(I)/87 dated July 13, 1987, in accordance and in conformity with the principles of Islamic Shariah. A ‘Certificate of Commencement of Business' was issued to the Bank on September 29, 1997. 1.1 The Bank was granted a ‘Scheduled Islamic Commercial Bank’ license on January 31, 2002 and formally commenced operations as a Scheduled Islamic Commercial Bank with effect from March 20, 2002, on receiving notification in this regard from the State Bank of Pakistan (the SBP) under section 37 of the State Bank of Pakistan Act, 1956. Currently, the Bank is engaged in corporate, commercial, consumer, investment and retail banking activities. 1.2 The Bank was operating through one thousand and seventy three branches as at September 30, 2025 (December 31, 2024: one thousand and fifty one branches). Its registered office is at Meezan House, C-25, Estate Avenue, SITE, Karachi, Pakistan. 1.3 The VIS Credit Rating Company Limited (VIS) has reaffirmed the Bank's medium to long-term rating as 'AAA' and short-term rating as 'A1+' on June 30, 2025 (2024: 'AAA' and 'A1+' dated June 28, 2024). 1.4 LEGAL STATUS AND NATURE OF BUSINESS The Bank provides Islamic financing and related assets mainly through Murabaha, Istisna, Tijarah, Ijarah, Diminishing Musharakah, Running Musharakah, Bai Muajjal, Musawammah, Service Ijarah, Wakalah, Wakalah Tul Istithmar including under Islamic Export Refinance Scheme and various long term islamic refinancing facilities of the State Bank of Pakistan respectively. The purchases and sales arising under these arrangements are not reflected in these unconsolidated condensed interim financial statements as such but are restricted to the amount of facility actually utilised and the appropriate portion of profit thereon. The income on such financing is recognised in accordance with the principles of Islamic Shariah. However, income, if any, received which does not comply with the principles of Islamic Shariah is recognised as charity payable if so directed by the Resident Shariah Board Member (RSBM) of the Bank. 2 BASIS OF PRESENTATION 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.
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20 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) the new standard - IFRS 18 'Presentation and Disclosure in Financial Statements' (published in April 2024) with applicability date of January 01, 2026 by IASB. IFRS 18 is yet to be adopted in Pakistan. IFRS 18 when adopted and applicable shall impact the presentation of 'Statement of Profit and Loss Account' with certain additional disclosures in the unconsolidated condensed interim financial statements. amendments to IFRS 9 'Financial Instruments' which clarify the date of recognition and derecognition of a financial asset or financial liability including settlement of liabilities through banking instruments and channels including electronic transfers. The amendment when applied may impact the timing of recognition and derecognition of financial liabilities. - - The disclosures made in these unconsolidated condensed interim financial statements have been limited based on the format prescribed by the SBP through BPRD Circular Letter No. 02 dated February 09, 2023 and the requirements of International Accounting Standard 34, "Interim Financial Reporting" . These do not include all the information and disclosures required for annual financial statements, and therefore should be read in conjunction with the annual audited unconsolidated financial statements of the Bank for the year ended December 31, 2024. 3.3 3.3.1 Standards, interpretations of and amendments to the published accounting and reporting standards that are effective in the current period: There are certain new and amended standards, issued by International Accounting Standards Board (IASB), interpretations and amendments that are mandatory for the Bank's accounting periods beginning on or after January 1, 2025, but are considered not to be relevant or do not have any material effect on the Bank's operations and are therefore not detailed in these unconsolidated condensed interim financial statements. The comparative period has been restated to incorporate the impact of adoption of IFRS 9 as disclosed in note 5.1.1. 3.4 Standards, interpretations of and amendments to the published accounting and reporting standards that are not yet effective: There are certain new and amended standards, issued by International Accounting Standards Board (IASB), interpretations and amendments that are mandatory for the Bank's accounting periods beginning on or after January 01, 2026 but are considered not to be relevant or will not have any material effect on the Bank's financial statements except for: 3.2.1 The Bank believes that there is no significant doubt on the Bank’s ability to continue as a going concern. Therefore, these unconsolidated condensed interim financial statements have been prepared on a going concern basis. These unconsolidated condensed interim financial statements have been prepared under the historical cost convention, except for certain non banking assets acquired in satisfaction of claims which are stated at revalued amounts, investment classified at fair value through profit or loss and fair value through other comprehensive income, commitments in respect of certain foreign exchange contracts which are measured at fair value, staff retirement benefits and compensated absences which are carried at present value. Accounting Convention 4.1 Items included in these unconsolidated condensed interim financial statements are measured using the currency of the primary economic environment in which the Bank operates. These unconsolidated condensed interim financial statements are presented in Pakistani Rupees, which is the Bank's functional and presentation currency. Functional and presentation currency4.2 Figures have been rounded off to the nearest thousand rupees unless otherwise stated. Rounding off4.3 The preparation of these unconsolidated condensed interim /f_inancial statements in conformity with the account- ing and reporting standards as applicable in Pakistan requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and income and expenses as well as in the disclosure of contingent liabilities. It also requires management to exercise judgment in application of its account- ing policies. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. These estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised, if the revision affects only that period, or in the period of revision and in future periods if the revision affects both current and future periods. Critical accounting estimates and judgments 4.4 BASIS OF MEASUREMENT4. 3.2
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21 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) Septemeber 30, 2025 (Unaudited) Note December 31, 2024 (Audited)6 CASH AND BALANCES WITH TREASURY BANKS These include local and foreign currency amounts required to be maintained by the Bank with the SBP under the Banking Companies Ordinance, 1962 and /or stipulated by the SBP . These accounts are non-remunerative in nature. 6.1 6.1 6.2 Rupees in 000 In hand - local currency - foreign currencies With the State Bank of Pakistan in - local currency current accounts - foreign currency current accounts With the National Bank of Pakistan in - local currency current accounts National Prize Bonds Less: Credit loss allowance held against cash and balances with treasury banks Cash and balances with treasury banks - net of credit loss allowance 58,194,197 4,217,507 62,411,704 130,168,172 16,943,132 147,111,304 69,634,692 345 (2,968) 279,155,077 54,273,193 4,243,363 58,516,556 147,811,687 15,694,215 163,505,902 38,694,972 22,945 (6,117) 260,734,258 The accounting policies applied in the preparation of these unconsolidated condensed interim financial statements are the same as applied in the preparation of the annual audited unconsolidated financial statements of the Bank for the year ended December 31, 2024. Impacts of adoption of IFRS 9 for the comparative period is disclosed in note 5.1. The financial risk management objectives and policies adopted by the Bank are consistent with those disclosed in the annual audited unconsolidated financial statements for the year ended December 31, 2024. MATERIAL ACCOUNTING POLICY INFORMATION AND FINANCIAL RISK MANAGEMENT POLICIES5 The SBP has directed the Banks through its BPRD Circular Letter No. 01 dated January 22, 2025 to continue the existing revenue recognition methodology, including the requirements of IFAS 1 and IFAS 2 until further instructions. Had IFRS 9 been adopted in its entirety for revenue recognition from Islamic operations profit / return earned on Islamic financing and related assets in unconsolidated statement of profit and loss account for the nine months period ended September 30, 2025 would have been lower by Rs. 1,963 million and taxation would have been lower by Rs 1,021 million. Further, an unappropriated profit in unconsolidated statement of changes in equity would have been higher by Rs 4,374 million. 5.1.2 In addition, the SBP in a separate instructions BPRD/RPD/822456/25 dated January 22, 2025 has allowed extension for application of Effective Profit Rate up to December 31, 2025. 5.1.3 The Bank had adopted IFRS 9 effective from January 01, 2024 with modified retrospective approach for restatement permitted under IFRS 9. The cumulative impact of initial application amounting to Rs. 1,214 million was recorded as an adjustment to equity at the beginning of the previous accounting period. The Bank, in compliance with extended timelines prescribed in SBP's BPRD Circular Letter No. 16 dated July 29, 2024 and BPRD Circular Letter No. 01 dated January 22, 2025 had incorporated certain IFRS 9 related impacts in the last quarter of 2024. Therefore, the unconsolidated condensed interim statement of profit and loss account for the nine months period ended September 30, 2024 have been restated to incorporate these impacts. Had the restatement not been incorporated the profit after tax and total comprehensive income for the nine months period ended September 30, 2024 would have been higher by Rs. 463 million and earnings per share would have been higher by Rs. 0.26. IFRS - 'Financial Instruments'5.1 5.1.1 The signi/f_icant judgments made by the management in applying the Bank's accounting policies and the key sources of estimation were the same as those applied in the preparation of unconsolidated annual audited /f_inancial statements for the year ended December 31, 2024.
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22 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) The effective average return on this product is 10.65% (December 31, 2024: 12.17%) per annum. The balance has maturity in November 2025 (December 31, 2024: July 2025). Septemeber 30, 2025 (Unaudited) December 31, 2024 (Audited) Due from financial institutions Due from financial institutions Credit loss allowance held Credit loss allowance held September 30, 2025 (Unaudited) December 31, 2024 (Audited) 42,504,070 - - - 15,500 15,500 42,519,570 34,964,299 - - - 15,500 15,500 34,979,799 213 - - - 15,500 15,500 15,713 - - - - 15,500 15,500 15,500 Note Note 8 DUE FROM FINANCIAL INSTITUTIONS Due from financial institutions - particulars of credit loss allowance 8.1 The effective average return on this product is 4.02% (December 31, 2024: Nil) per annum. The balances have maturity latest by December 2025. 8.2 8.3 Rupees in 000 Rupees in 000 Bai Muajjal receivable - inside Pakistan: - from scheduled banks / financial institutions - Secured - from other Financial Institution Musharakah placements - outside Pakistan Less: Credit loss allowance held against due from financial institutions Due from financial institutions - net of credit loss allowance 19,998,686 15,500 20,014,186 22,505,384 42,519,570 (15,713) 42,503,857 34,964,299 15,500 34,979,799 - 34,979,799 (15,500) 34,964,299 8.1 8.2 8.3 7.1 These represent the national prize bonds received from customers for onward surrendering to SBP . The Bank, as a matter of Shariah principle, does not deal in prize bonds. 6.2 This represents the balance in the remunerative account maintained with financial institutions outside Pakistan. The return on these balances are 2.27% (December 31, 2024: 3.50%) per annum. 7.1 Septemeber 30, 2025 (Unaudited) December 31, 2024 (Audited) 13,150,367 4,539,534 1,527,642 6,067,176 (24,057) 19,193,486 10,723,532 2,437,740 280,223 2,717,963 (16,545) 13,424,950 7 BALANCES WITH OTHER BANKS In Pakistan - in current accounts Outside Pakistan - in current accounts - in deposit accounts Less: Credit loss allowance held against balances with other banks Balances with other banks - net of credit loss allowance Rupees in 000 Domestic Stage 1 / Performing Stage 2 / Under performing Stage 3 / Non-performing Substandard Doubtful Loss Total Note
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23 September 30, 2025 Percentage of holding % Assets Liabilities Revenue Profit after taxation Total comprehensive income Market value / net asset share 65.00% 100.00% 10,936,721 1,064,951 3,037,080 29,368 7,765,892 124,145 3,399,454 4,983 3,399,454 4,983 5,134,767 1,035,583 11.43% 5.00% 3.25% - 4.49% 6.41% - 0.03% 4,703,096 24,474,470 65,676,434 21,813,223 6,279,883 6,234,443 232,116,673 18,855,050 380,153,272 117,071 869,306 1,720,265 359,819 36,729 116,466 1,627,637 169,600 5,016,893 879,207 5,756,480 17,005,542 4,558,213 1,543,968 1,715,744 16,520,595 2,105,279 50,085,028 757,372 5,336,488 15,585,378 3,345,037 1,451,014 1,642,973 14,521,843 1,653,964 44,294,069 757,372 5,336,488 15,585,378 3,345,037 1,451,014 1,642,973 14,521,843 1,653,964 44,294,068 524,374 1,181,200 2,080,559 521 280,571 392,234 5,040 5,124 4,469,623 9.1.2 9.1.1 Details of investment in subsidiaries and associates Subsidiaries (unlisted) Al Meezan Investment Management Limited Meezan Exchange Company (Private) Limited Associates (open ended - listed) Meezan Balanced Fund Al Meezan Mutual Fund Meezan Islamic Fund Meezan Sovereign Fund* Meezan Gold Fund KSE Meezan Index Fund Meezan Cash Fund* Meezan Islamic Income Fund * Nil percentage due to round off FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) September 30, 2025 (Unaudited) December 31, 2024 (Audited)9 INVESTMENTS 9.1 Investments by type: FVTPL securities - Federal Government securities - Units of mutual funds - Non Government sukuks FVOCI securities - Federal Government Securities - Shares - Non Government sukuks - Foreign securities Amortized cost securities - Federal Government securities In related parties Associates - Units of mutual funds Subsidiaries - Shares Total Investments - 17,265 6,830 24,095 28,321,592 7,563,300 (10,866) 69,375 35,943,401 - - - 35,967,496 1,018,272 79,700 933,000 2,030,972 2,080,201,126 5,478,315 125,676,827 8,015,977 2,219,372,245 253,871,209 859,283 1,063,050 2,477,196,759 1,018,272 96,965 939,830 2,055,067 2,108,522,718 13,041,615 125,327,785 8,084,747 2,254,976,865 253,871,209 859,283 1,063,050 2,512,825,474 - - - - - - 338,176 605 338,781 - - - 338,781 4,778,499 59,150 933,000 5,770,649 1,317,019,755 6,323,475 126,953,624 4,028,707 1,454,325,561 362,725,910 859,283 1,063,050 1,824,744,453 - 7,483 1,066 8,549 37,668,822 4,817,853 3,711,417 (70,608) 46,127,484 - - - 46,136,033 4,778,499 66,633 934,066 5,779,198 1,354,688,577 11,141,328 130,320,604 3,957,670 1,500,108,179 362,725,910 859,283 1,063,050 1,870,535,620 - - - - - - 344,437 429 344,866 - - - 344,866 Credit loss allow ance Cost / amortised cost Surplus / (de/f_icit) Credit loss allow ance Cost / amortised cost Surplus / (de/f_icit) During the period, the Bank has changed the classification of financial assets - Federal Government securities (GoP ijarah sukuks) amounting to Rs 242.6 billion from amortised cost to fair value through other comprehensive income due to reassessment of business model of the Bank. The reclassification has been made with effect from January 01, 2025. The revaluation gain of Rs 1.1 billion - gross of tax due to reclassification has been recorded in statement of other comprehensive income. These sukuks were originally classified at amortised cost on January 01, 2024 upon adoption of IFRS 9. The above reclassi- fication has no effect on the financial statements of the Bank except for the change mentioned above and in capital adequacy ratio which has been increased from 20.35% to 20.39% as on the date of reclassification (January 01, 2025). Note 9.1.1 and 9.5 9.1.1 and 9.1.3 9.2
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24 Subsidiaries and associates are incorporated / registered in Pakistan. The shares in subsidiaries are placed in custody account with Central Depository Company of Pakistan Limited and cannot be sold without the prior approval of the SECP in accordance with the SECP's circular No. 9 of 2006 dated June 15, 2006. * Nil percentage due to round off FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) September 30, 2025 (Unaudited) December 31, 2024 (Audited) 344,866 - - - 535 (6,620) (6,085) 338,781 2,632,709 (2,562,068) 52,035 (2,510,033) 239,996 (17,806) 222,190 344,866 Opening balance Impact of adoption of IFRS 9 - reversal of provision held against shares Impact of adoption of IFRS 9 - credit loss allowance (Reversal) / charge ECL charge for the period / year ECL reversal for the period / year (including cash recovery) Closing balance September 30, 2025 (Unaudited) Cost / amortised cost Market value Cost / amortised cost Market value December 31, 2024 (Audited) 260,000,000 263,620,000 485,500,000 503,414,750 9.1.3 Investments given as collateral 9.2 Particulars of credit loss allowance / provision for diminution in value of investments Federal Government securities - GoP Ijarah sukuks Note 9.3 December 31, 2024 Percentage of holding % Assets Liabilities Revenue Profit after taxation Total comprehensive income Market value / net asset share 65.00% 100.00% 8,130,073 1,057,295 2,662,520 23,447 7,137,629 150,306 2,943,580 33,848 2,943,580 33,848 3,550,660 1,033,848 13.40% 8.42% 3.55% - 7.49% 4.49% 0.01% 0.01% 3,606,799 10,430,810 44,842,591 272,303,981 2,787,923 6,804,275 90,343,436 46,775,350 477,895,165 257,557 235,289 1,115,789 2,755,188 20,177 115,925 423,819 516,945 5,440,690 1,060,056 4,113,019 17,625,926 23,900,940 478,263 2,249,888 12,858,463 4,850,189 67,136,744 954,492 3,883,772 16,655,792 22,176,692 430,402 2,166,786 11,994,400 4,453,056 62,715,392 954,492 3,883,772 16,655,792 22,176,692 430,402 2,166,786 11,994,400 4,453,056 62,715,392 448,919 858,463 1,550,276 572 207,304 300,253 5,429 2,793 3,374,009 Subsidiaries (unlisted) Al Meezan Investment Management Limited Meezan Exchange Company (Private) Limited Associates (open ended - listed) Meezan Balanced Fund Al Meezan Mutual Fund Meezan Islamic Fund Meezan Sovereign Fund* Meezan Gold Fund KSE Meezan Index Fund Meezan Cash Fund Meezan Islamic Income Fund
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25 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) Septemeber 30, 2025 (Unaudited) December 31, 2024 (Audited)9.3 9.4 Particulars of credit loss allowance / provision against debt securities Domestic Performing - Stage 1 Under performing - Stage 2 Non-performing - Stage 3 Substandard Doubtful Loss 9,609,538 - - - 334,170 334,170 9,943,708 4,611 - - - 334,170 334,170 338,781 5,604,416 - - - 339,650 339,650 5,944,066 5,216 - - - 339,650 339,650 344,866 September 30, 2025 (Unaudited) December 31, 2024 (Audited) 7,077,266 59,951 949,310 9,868,187 1,968,185 77,178 960,475 - 50,000 112,144 21,122,696 5,552,574 303,924 1,818,265 22,450,689 1,484,181 354,722 770,105 2,852 - - 32,737,312 10 ISLAMIC FINANCING AND RELATED ASSETS In Pakistan: Murabaha financing and related assets - Murabaha financing - Financing under Islamic Export Refinance - Murabaha - Financing against Islamic SME Asaan Finance - Murabaha - Advances against Murabaha - Murabaha inventory - Advance against Islamic SME Asaan Finance - Murabaha - Advance against Islamic Export Refinance - Murabaha - Inventory under Islamic SME Asaan Finance - Murabaha - Financing against Islamic Working Capital Finance - Inventory under Islamic Export Refinance - Murabaha 341,994,969 29,388,296 371,383,265 31,204,921 57,919,782 35,278,241 992,137 8,389,767 2,669,883 136,454,731 676,407,577 36,943,954 713,351,531 24,178,898 75,741,840 57,719,292 419,234 10,612,565 4,193,560 172,865,389 Istisna financing and related assets - Istisna financing - Advances against Istisna - Istisna inventory - Financing under Islamic Export Refinance - Istisna - Advances under Islamic Export Refinance - Istisna - Inventory under Islamic Export Refinance - Istisna Running Musharakah financing - Running Musharakah financing - Financing under Islamic Export Refinance - Running Musharakah Investment - Cost / amortised cost Credit loss allowance Investment - Cost / amortised cost Credit loss allowance The debt securities amounting to Rs 2,334,072 million (December 31, 2024: Rs 1,679,746 million) and Rs 124,083 million (December 31, 2024: Rs 125,038 million) pertains to Government securities and Government guaranteed exposure respectively. The exposure is exempted for the calculation of ECL by the SBP . 9.5 The market value of securities classified as amortised cost as at September 30, 2025 amounted to Rs 254,498 million (December 31, 2024: Rs 364,085 million). 10.1
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26 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) September 30, 2025 (Unaudited) December 31, 2024 (Audited) 48,758 61,624,855 61,673,613 7,857,788 69,531,401 - Net investment in Ijarah - Net book value of assets / investment in Ijarah under IFAS 2 - Advances against Ijarah Ijarah financing and related assets 18,247,475 357,521 457,674 5,111 19,020,291 21,461,618 - 205,800 90,965 59,846,455 2,216,018 16,139,846 1,861,783 20,217,647 436,834 1,738 438,572 10,497,666 23,777,208 669,459 428,575 26,508 12,317,484 13,320,611 11,853 879,245 28,000 51,458,943 1,569,320 25,511,879 2,625,049 29,706,248 1,196,715 1,738 1,198,453 43,662,372 Musawammah financing and related assets - Musawammah financing - Financing under Islamic Export Refinance - Musawammah - Financing under SBP's Islamic Financing Facility for Renewable Energy (IFRE) - Musawammah - Financing against Islamic SME Asaan Finance - Musawammah - Advances against Musawammah - Musawammah Inventory - Advance against Islamic SME Asaan Finance - Musawammah - Advances under Islamic Export Refinance - Musawammah - Inventory under Islamic Export Refinance - Musawammah Salam Financing and related assets - Salam Financing - Advances against Salam - Salam Inventory Financing against bills - Financing against bills - Salam - Advance against bills - Salam 10.3 3,835,586 10,504,780 1,356,935 272,714 463,471 16,433,486 4,876,050 14,434,733 1,086,970 311,241 855,201 21,564,195 Tijarah financing and related assets - Tijarah financing - Tijarah inventory - Financing under Islamic Export Refinance - Tijarah - Inventory under Islamic SME Asaan Finance - Tijarah - Inventory under Islamic Export Refinance - Tijarah 259,792,369 17,275,512 928,214 14,309,407 46,885 3,477,170 16,254,813 11,488,794 371,966 30,732 24,728,046 209,995 1,440,913 60,723 234,564 427,230 64,600 4,450 1,793,287 352,939,670 219,903,211 16,873,015 399,281 15,153,734 107,606 3,190,659 16,898,044 12,790,555 190,903 10,327 55,505,976 693,503 2,228,906 109,029 560,712 427,647 14,903 5,000 3,151,948 348,214,959 - Diminishing Musharakah financing - Diminishing Musharakah financing - housing - Diminishing Musharakah financing - SBP's Islamic Financing Facility for Storage of Agricultural Produce (IFFSAP) - Diminishing Musharakah financing - SBP's Islamic Financing Facility for Renewable Energy (IFRE) - Diminishing Musharakah financing - SBP's Islamic Refinance Facility for Combating COVID – 19 (IRFCC) - Diminishing Musharakah financing - SBP's Islamic SME Asaan Finance (I-SAAF) Scheme - Diminishing Musharakah financing - SBP's Islamic Long Term Financing Facility (ILTFF) for Plant & Machinery - Diminishing Musharakah financing - SBP's Islamic Temporary Economic Refinance Facility (ITERF) - Diminishing Musharakah financing - under SBP's Islamic Refinance Facility for Modernisation of SMEs (IRFMS) - Diminishing Musharakah financing - SBP's Islamic Refinance and Credit Guarantee Scheme for Women Entrepreneurs (IRCGSWE) - Advances against Diminishing Musharakah - Advances against Diminishing Musharakah under SBP's IFFSAP - Advances against Diminishing Musharakah under SBP's IFRE - Advances against Diminishing Musharakah under SBP's IRFCC - Advances against Diminishing Musharakah under SBP's ISAAF - Advances against Diminishing Musharakah under SBP's ITERF - Advances against Diminishing Musharakah under SBP's IRFMS - Advances against Diminishing Musharakah under SBP's IRCGSWE - Advances against Diminishing Musharakah under SBP's ILTFF Diminishing Musharakah financing and related assets 10.2 10.4 48,110 84,975,002 85,023,112 16,659,823 101,682,935
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27 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) Less: Credit loss allowance against Islamic financing and related assets Stage 1 Stage 2 Less: Credit loss allowance / provision against non-performing Islamic financing and related assets - Specific / Stage 3 Less: Provision against non-performing Islamic financing and related assets - General Islamic financing and related assets - net of credit loss allowance / provision - Musharakah financing - Wakalah Tul Istithmar financing - Advances against Wakalah Tul Istithmar - Advances against Service Ijarah - Qard financing under SBP's IRFCC - Labbaik (Qard for Hajj and Umrah) - Staff financing (including under SBP's IFRE) - Other financing Gross Islamic Financing and Related Assets 10.5 10.6 11,260,392 (433,029) (329,697) 10,497,666 45,392,716 (1,103,526) (626,818) 43,662,372 Net book value of assets / investments in Ijarah under IFAS 2 is net of depreciation of Rs 57,170 million (December 31, 2024: Rs 51,119 million). 10.4 Bai Muajjal financing - gross Less: Deferred income Profit receivable shown in other assets Bai Muajjal financing 1,500,000 28,051,956 - 42,632,776 25,097 2,235 9,850,185 1,297,957 1,174,377,329 1,300,000 - 30,602,133 30,508,677 114,803 5,547 8,321,137 1,219,218 1,556,362,318 (1,961,802) (3,666,982) (25,936,677) (13,600,000) 1,129,211,868 (2,609,888) (1,511,416) (23,885,078) (13,600,000) 1,514,755,936 September 30, 2025 (Unaudited) December 31, 2024 (Audited) 10.1.1 10.1.3 10.1.2 Murabaha receivable - gross Less: Deferred murabaha income Profit receivable shown in other assets Murabaha financing Murabaha Sale Price Murabaha Purchase Price The movement in Murabaha financing during the period / year is as follows: Opening balance Sales during the period / year Adjusted during the period / year Closing balance 8,541,252 (194,416) (210,309) 8,136,527 7,674,763 35,133,034 (34,671,270) 8,136,527 Musawammah financing - gross Less: Deferred income Profit receivable shown in other assets Musawammah financing Deferred murabaha income Opening balance Arising during the period / year Recognised during the period / year Closing balance 145,025 2,292,843 (2,243,452) 194,416 19,829,069 (455,100) (306,188) 19,067,781 248,064 3,416,239 (3,519,278) 145,025 26,413,197 (627,968) (883,479) 24,901,750 8,541,252 (8,136,527) 404,725 8,091,467 (145,025) (271,679) 7,674,763 7,177,526 53,863,021 (53,365,784) 7,674,763 8,091,467 (7,674,763) 416,704 10.7.1 10.7.1 10.7.1 10.7.1
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28 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) September 30, 2025 (Unaudited) December 31, 2024 (Audited) Islamic financing and related assets include Rs 30,860 million (December 31, 2024: Rs 25,243 million) which have been placed under non-performing status (stage 3 under IFRS 9) as detailed below: 10.7 1,109,763,658 64,613,671 1,174,377,329 1,464,872,537 91,489,781 1,556,362,318 Particulars of financing - Gross - in local currency - in foreign currencies 10.6 This includes Rs 1,066 million (December 31, 2024: Rs 973 million) representing profit free financing to staff advanced under the Bank's Human Resource Policies. 10.5 2,652 3,105,292 5,857,197 16,971,536 25,936,677 6,493 6,292,037 7,280,473 17,281,194 30,860,197 176 763,303 4,001,247 19,120,352 23,885,078 388 962,362 4,765,274 19,515,149 25,243,173 September 30, 2025 (Unaudited) December 31, 2024 (Audited) Credit loss allowance Credit loss allowance Category of classification Other Assets Especially Mentioned Substandard Doubtful Loss Total Stage 3 It includes reversal on account of settlement of exposure amounting to Rs 244 million (December 31, 2024: Rs 590 million) against acquisition of non-banking asset amounting to Rs 281 million (December 31, 2024: Rs 471 million). 10.7.2 Particulars of credit loss allowance against Islamic financing and related assets: 10.7.1 Opening balance Implementation of IFRS 9 Impact adoption of IFRS 9 - credit loss allowance Impact of adoption of IFRS 9 - reversal of provision Exchange adjustment for the period / year Net ECL Charge / (reversal) for the period / year: Charge for the period / year Less: Reversals for the period / year Transfer to other liabilities Amount written off Closing balance September 30, 2025 (Unaudited) December 31, 2024 (Audited) - - 2,419,726 - 2,419,726 - - 1,114,242 (924,080) 190,162 - - 2,609,888 - - 1,034,559 - 1,034,559 - - 1,023,586 (546,729) 476,857 - - 1,511,416 - 16,107,097 550,553 - 550,553 (6,806) - 10,070,673 (1,904,128) 8,166,545 (749,988) (182,323) 23,885,078 16,107,097 (16,107,097) - - - - - - - - - - - 14,247,354 - - (647,354) (647,354) - - - - - - - 13,600,000 Stage 1 Specific General 30,354,451 - 4,004,838 (647,354) 3,357,484 (6,806) - 12,208,501 (3,374,937) 8,833,564 (749,988) (182,323) 41,606,382 Total Expected credit loss Stage 2 Stage 3 2,609,888 - - - - - - 713,670 (1,361,756) (648,086) - - 1,961,802 1,511,416 - - - - - - 2,783,778 (628,212) 2,155,566 - - 3,666,982 23,885,078 - - - - 5,749 - 4,796,981 (2,751,131) 2,045,850 - - 25,936,677 13,600,000 - - - - - - - - - - - 13,600,000 Stage 1 General 41,606,382 - - - - 5,749 - 8,294,429 (4,741,099) 3,553,330 - - 45,165,461 Total Expected credit loss Stage 2 Stage 3 Note 10.7.2
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29 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) In addition, the Bank has also maintained a general provision of Rs 13,600 million (December 31, 2024: Rs 13,600 million) against financing made on prudent basis, in view of prevailing economic conditions. This general provision is in addition to the requirements of IFRS 9. This general provision can be maintained till December 31, 2026 under BPRD circular No. 1 of 2025 dated January 22, 2025. 10.7.3 In accordance with BSD Circular No. 2 dated January 27, 2009 issued by the SBP , the Bank has availed the benefit of Forced Sales Value (FSV) of collaterals against the non-performing financing. Since under the instructions from the SBP , the Bank considers the higher of IFRS 9 stage 3 provision and provision under Prudential regulations, the FSV benefit availed is not applicable for all non-performing financing. The accumulated benefit availed amounts to Rs 399.68 million (December 31, 2024: Rs 438.45 million). The additional profit arising from availing the FSV benefit - net of tax amounts to Rs 187.85 million (December 31, 2024: Rs 201.69 million). The increase in profit, due to availing of the benefit, is not available for distribution of cash and stock dividend to share holders. 10.7.4 1,961,802 3,666,982 2,652 3,105,292 5,857,197 16,971,536 25,936,677 31,565,461 1,034,285,895 109,231,237 6,493 6,292,037 7,280,473 17,281,194 30,860,197 1,174,377,329 2,609,888 1,511,416 176 763,303 4,001,247 19,120,352 23,885,078 28,006,382 1,469,603,905 61,515,240 388 962,362 4,765,274 19,515,149 25,243,173 1,556,362,318 September 30, 2025 (Unaudited) December 31, 2024 (Audited) Performing Underperforming Non-Performing Other Assets Especially Mentioned Substandard Doubtful Loss Total Stage 1 Stage 2 Stage 3 Credit loss allowance Credit loss allowance Outstanding amount Outstanding amount Category of classification10.7.6 Opening balance Implementation of IFRS 9 Impact of adoption of IFRS 9 Balance as at January 01 after adopting IFRS 9 Fresh disbursements Amount derecognised / repaid Transfer to stage 1 Transfer to stage 2 Transfer to stage 3 Transfer to other liabilities Amounts written off / charged off Changes in risk parameters Other changes Closing balance September 30, 2025 (Unaudited) December 31, 2024 (Audited) - - 2,419,726 2,419,726 1,421,726 (407,019) 19,553 (515,067) (73,067) 446,126 - - (255,964) - 2,609,888 - - 1,034,559 1,034,559 20,799 (156,162) (19,542) 515,092 (50,983) 309,204 - - 167,653 - 1,511,416 - 16,107,097 550,553 16,657,650 9,760 (1,977,819) (11) (25) 124,050 (1,844,045) (749,988) (182,323) 10,010,590 (6,806) 23,885,078 16,107,097 (16,107,097) - - - - - - - - - - - - - 14,247,354 - (647,354) 13,600,000 - - - - - - - - - - 13,600,000 Stage 1 Specific General 30,354,451 - 3,357,484 33,711,935 1,452,285 (2,541,000) - - - (1,088,715) (749,988) (182,323) 9,922,279 (6,806) 41,606,382 Total Expected credit loss Stage 2 Stage 3 2,609,888 - - 2,609,888 521,820 (642,103) 54,200 (286,540) (808) (353,431) - - (294,655) - 1,961,802 1,511,416 - - 1,511,416 163,423 (160,351) (52,419) 415,794 (39,108) 327,339 - - 1,828,227 - 3,666,982 23,885,078 - - 23,885,078 1,992,197 (2,486,137) (1,781) (129,254) 39,916 (585,059) - - 2,630,969 5,689 25,936,677 13,600,000 - - 13,600,000 - - - - - - - - - - 13,600,000 Stage 1 General 41,606,382 - - 41,606,382 2,677,440 (3,288,591) - - - (611,151) - - 4,164,541 5,689 45,165,461 Total Expected credit loss Stage 2 Stage 3 10.7.5 Islamic financing and related assets - particulars of credit loss allowance
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30 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) 391 378 6,568 351,272 358,609 19,729 657 5,516 163,023 188,925 September 30, 2025 (Unaudited) December 31, 2024 (Audited) September 30, 2025 (Unaudited) September 30, 2024 (Unaudited) 8,266,019 41,062,821 49,328,840 (300,000) 49,028,840 12,577,705 34,570,029 47,147,734 (300,000) 46,847,734 11.1 29 PROPERTY AND EQUIPMENT Capital work-in-progress Property and equipment Less: Provision against capital work-in-progress 11 5,236,601 677,754 684,966 1,259,052 407,646 8,266,019 7,967,486 1,074,750 731,613 2,045,000 758,856 12,577,705 Capital work-in-progress Advances to suppliers and contractors for: - civil works - computer hardware - purchase of vehicles - office machines - furniture and fixtures 11.1 (4,311,686) 231,823 3,802,431 1,587,717 804,330 3,624,407 2,026,132 12,076,840 7,765,154 1,883,746 760,187 500,877 1,109,314 234,006 4,746,110 1,557,506 8,908,000 10,791,746 Additions / transfers to property and equipment The following additions have been made to property and equipment during the period: Capital work-in-progress Property and equipment Leasehold land Building on leasehold land* Leasehold improvements Furniture and fixture Electrical, office and computer equipment Vehicles *It includes transfer from non-banking assets. 11.2 Disposal of property and equipment The net book value of property and equipment disposed off during the period is as follows: Leasehold improvements Furniture and fixture Electrical, office and computer equipment Vehicles 11.3 12 RIGHT-OF-USE ASSETS September 30, 2025 (Unaudited) Cost Accumulated Depreciation Net Book Value 33,624,561 2,070,866 - - 35,695,427 (12,394,364) - - (2,123,652) (14,518,016) 21,230,197 2,070,866 - (2,123,652) 21,177,411 At January 1, Additions during the period Derecognition during the period Depreciation Charge At September 30,
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31 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) September 30, 2025 (Unaudited) December 31, 2024 (Audited) 2,350,333 961,473 3,311,806 2,227,368 669,512 2,896,880 INTANGIBLE ASSETS Computer Software Advance against computer software 13 December 31, 2024 (Audited) Cost Accumulated Depreciation Net Book Value 29,812,340 4,280,598 - (468,377) 33,624,561 (10,240,488) - (2,622,253) 468,377 (12,394,364) 19,571,852 4,280,598 (2,622,253) - 21,230,197 At January 1, Additions during the year Depreciation Charge Derecognition during the year At December 31, September 30, 2025 (Unaudited) September 30, 2024 (Unaudited) 1,007,329 938,459 The following additions have been made to intangible assets during the period: Computer software (including advances) - directly purchased Additions to intangible assets 13.1 September 30, 2025 (Unaudited) December 31, 2024 (Audited) Profit / return accrued in local currency Profit / return accrued in foreign currencies Acceptances Advances, deposits, and other prepayments Non-banking assets acquired in satisfaction of claims Mark to market gain on forward foreign exchange contracts Dividends receivable Stamps Security deposits Receivable under Alternate Delivery Channel (ADC) Receivable from State Bank of Pakistan under home remittance Other Less: Credit loss allowance / provision held against other assets Other Assets (net of credit loss allowance / provision held) 14.1 & 14.1.1 123,480,046 503,758 22,882,619 14,858,441 521,392 2,098,927 23,919 31,554 549,736 3,651,463 10,620,665 724,885 179,947,405 (380,686) 179,566,719 86,337,594 770,387 28,322,450 12,243,159 521,392 1,661,801 261 28,644 556,929 1,772,365 4,261,218 551,790 137,027,990 (344,733) 136,683,257 These rental agreements mainly pertain to the branches that are operated throughout Pakistan.12.1
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32 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) 344,733 - 178,657 (110,635) (32,069) 380,686 152,364 162,964 164,222 (107,145) (27,672) 344,733 Particulars against expected credit loss allowance / provision held against other assets 14.1 Movement in credit loss allowance / provision held against other assets Opening balance Impact of adoption of IFRS 9 Charge for the period / year (including ECL) Reversals for the period / year Amount adjusted / written off Closing balance 14.1.1 98,224 81,213 179,437 22,942 178,307 201,249 380,686 101,252 45,127 146,379 22,942 175,412 198,354 344,733 46,079,960 17,023,581 144,667 15,911,923 11,452,272 1,133,154 44,349 436,566 50,000 4,992,566 231,659,962 5,026,158 333,955,158 25,000,000 7,543,986 366,499,144 1,200,374 131,388,000 132,588,374 499,087,518 58,932,838 19,743,040 331,437 17,508,943 12,742,132 896,789 10,327 181,818 - 6,192,179 390,321,306 47,627,464 554,488,273 60,500,000 6,434,755 621,423,028 2,083,290 98,780,000 100,863,290 722,286,318 112,605,407 59,890,731 In Pakistan BILLS PAYABLE Details of due to financial institutions - secured / unsecured Secured With State Bank of Pakistan Musharakah under Islamic Export Refinance Scheme Investment under Islamic Long Term Financing Facility Investment under Islamic Refinance Facility for Combating COVID-19 Investment under Islamic Financing for Renewal Energy Investment under Islamic Temporary Economic Refinance Facility for Plant and Machinery Investment under Islamic Refinance Scheme for storage of agriculture produce Investment under Islamic Refinance and Credit Guarantee Scheme for Women Entrepreneurs (IRCGSWE) Investment under Islamic Refinance Scheme for modernization of SMEs (IRFMS) Investment under Islamic Refinance Scheme for Working Capital Finance Investment under Islamic Refinance Scheme for SME Asaan Finance Investment under Shariah Compliant Open Market Operations Investment under Shariah Compliant Standing Ceiling Facility Total secured With Scheduled Bank Other financial institutions Total secured Unsecured Overdrawn nostro accounts Musharakah with scheduled banks / financial institutions Total Unsecured 16.1.1 16.1.1 16.1.2 16.1.3 499,087,518 722,286,318 In Pakistan DUE TO FINANCIAL INSTITUTIONS September 30, 2025 (Unaudited) December 31, 2024 (Audited) September 30, 2025 (Unaudited) December 31, 2024 (Audited) Credit loss allowance against other assets Profit / return accrued & Others Acceptances Provision against other assets Non-banking assets acquired in satisfaction of claims Others
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33 September 30, 2025 (Unaudited) December 31, 2024 (Audited) 1,202,351,752 1,164,871,403 179,533,496 21,134,884 2,567,891,535 66,726,436 80,885,820 15,146,642 1,987,535 164,746,433 1,135,625,316 1,083,985,583 164,386,854 19,147,349 2,403,145,102 5,303,730 11,586,195 89,840 16,979,765 2,584,871,300 611,371 46,492 - 657,863 165,404,296 4,692,359 11,539,703 89,840 16,321,902 2,419,467,004 1,538,976,897 1,396,323,304 198,153,282 16,583,387 3,150,036,870 77,347,431 84,412,079 15,346,841 243,580 177,349,931 1,461,629,466 1,311,911,225 182,806,441 16,339,807 2,972,686,939 8,666,151 14,632,072 2,951,100 26,249,323 3,176,286,193 1,160,454 258,621 - 1,419,075 178,769,006 7,505,697 14,373,451 2,951,100 24,830,248 2,997,517,187 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) 25,848,322 2,070,866 3,080,829 (3,582,971) 27,417,046 22,093,855 4,280,598 3,822,277 (4,348,408) 25,848,322 September 30, 2025 (Unaudited) December 31, 2024 (Audited)LEASE LIABILITY AGAINST RIGHT-OF-USE ASSETS As at January 1, Additions Amortisation of lease liability against right-of-use assets Payments As at September 30 / December 31, 18 7,000,000 9,990,000 16,990,000 7,000,000 13,990,000 20,990,000 SUB-ORDINATED SUKUK Additional Tier I Sukuk Tier II Sukuk 19 These represent acceptance of funds by the Bank on Mudarabah basis which has been invested in special pools of the Bank and are secured against lien of the Bank's investment in Federal Government securities. The expected average return on Open Market Operations is 11.11% (December 31, 2024: 13.08%) per annum and Standing Ceiling Facility is 12.00% (December 31, 2024: 14.00%) per annum. 16.1.1 These represent acceptance of funds by the Bank on Musharakah basis which are secured against lien of the Bank's investment in Federal Government securities. The expected average return on these Musharakah is around 11.02% (December 31, 2024: 13.25%) per annum. These balances have maturity in October 2025 (December 31, 2024: January 2025). 16.1.2 These represent acceptance of funds by the Bank on Musharakah basis. The expected average return on these Musharakah is around 10.73% (December 31, 2024: 12.23%) per annum. These balances have maturity in December 2025 (December 31, 2024: January 2025). 16.1.3
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34 The Mudaraba Profit is computed under General Pool on the basis of profit sharing ratio and monthly weightages announced by the Bank under the SBP guidelines of pool management. Last announced profit rate on the Sukuks is 13.49% per annum. In August 2018, the Bank issued regulatory Shariah compliant unsecured, sub-ordinated privately placed Additional Tier I Sukuk based on Mudaraba of Rs. 7,000 million as instrument of redeemable capital under section 66 of the Companies Act, 2017. The brief description of Additional Tier I sukuk is as follows: Expected Periodic Profit Amount (Mudaraba Profit Amount) - Non - discretionary subject to actual profit of the pool The Mudaraba Profit is computed under General Pool on the basis of profit sharing ratio and monthly weightages announced by the Bank under the SBP guidelines of pool management. Last announced profit rate on the Sukuks is 11.76% per annum. Expected Periodic Profit Amount (Mudaraba Profit Amount) - Non-discretionary subject to actual profit of the pool The Bank may call Tier II Sukuk with prior approval of SBP on or after five years from the date of issue. The Tier II Sukuk, at the option of the SBP , will be fully and permanently converted into common shares (variable) upon the occurrence of a point of non-viability trigger event as determined by SBP or for any other reason as may be directed by SBP . Profit and/or redemption amount can be held back in respect of the Tier II Sukuk upon directive of the SBP , if such payment will result in a shortfall in the Bank’s minimum capital requirement, capital adequacy ratio requirement or leverage ratio requirement. FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) In December 2021, the Bank issued regulatory Shariah compliant unsecured, subordinated privately placed Tier II Sukuks based on Mudaraba of Rs 9,990 million respectively as instrument of redeemable capital under section 66 of the Companies Act, 2017. The brief description of Tier II sukuks is as follows: The Bank may call Additional Tier I Sukuks with prior approval of SBP on or after five years from the date of issue. The Additional Tier I Sukuks, at the option of the SBP , will be fully and permanently converted into common shares (variable) upon the occurrence of a point of non-viability trigger event as determined by SBP or for any other reason as may be directed by SBP . Profit and/or redemption amount can be held back in respect of the Additional Tier I Sukuks, upon directive of the SBP , if such payment will result in a shortfall in the Bank’s minimum capital requirement, capital adequacy ratio requirement or leverage ratio requirement. AA+ (Double A Plus) by VIS Credit Rating Company Limited 19.1 19.2 During the period, the Bank exercised Call Option with prior approval of SBP in respect of its regulatory Shariah compliant unsecured, subordinated privately placed Tier II sukuks of Rs 4,000 million issued by the Bank in January 2020. The principal and profit component of these sukuks were paid back to investors in June 2025. 19.2.1 AAA (Triple A) by VIS Credit Rating Company Limited. December 16, 2021 10 years from the issue date Semi-annually in arrears Bullet payment at the end of the tenth year
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35 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) Return on deposits and other dues - payable in local currency - payable in foreign currencies Unearned income Accrued expenses Current taxation (provision less payments) Acceptances Dividend payable (including unclaimed dividend) Payable to defined benefit plan Credit loss allowance against off-balance sheet obligations Charity payable Security deposits against Ijarah Payable on account of credit murabaha / ijarah / musawammah Security deposits against lockers Mark to market loss on forward foreign exchange commitments Withholding taxes payable Workers Welfare Fund payable Payable under Alternate Delivery Channel (ADC) Others 10,368,786 354,698 5,481,533 34,002,727 27,949,086 22,882,619 40,620 2,169,804 280,578 12,387 31,214,547 1,326,852 251,576 1,410,578 732,032 17,145,052 21,055,334 3,191,077 179,869,886 12,658,579 319,959 4,301,617 40,269,608 17,450,552 28,322,450 41,374 2,153,351 302,882 31,527 20,777,476 662,558 232,090 2,347,221 461,208 13,893,019 26,625,633 3,425,053 174,276,157 Opening balance Impact of adoption of IFRS 9 Charge for the period / year Reversals for the period / year Closing balance 302,882 - 191,266 (213,570) 280,578 55,167 269,835 169,393 (191,513) 302,882 21.2 21 (176,166) (14,256,864) (4,738,571) (7,588,841) (357,910) (27,118,352) 3,637,112 (179,330) - (5,759,073) (4,620,736) (348,544) (10,907,683) 14,211,335 September 30, 2025 (Unaudited) December 31, 2024 (Audited) DEFERRED TAX LIABILITIES Taxable temporary differences on: Excess of accounting book values over tax written down values of owned assets Surplus on revaluation of FVOCI investments Right-of-use assets Surplus on revaluation of FVTPL investments Surplus on revaluation of non-banking assets acquired in satisfaction of claims 20 1,040,112 18,690,569 11,012,254 12,529 - 30,755,464 1,128,110 23,986,292 - 4,616 - 25,119,018 Deductible temporary differences on: Net credit loss allowance against investments Lease liability against right-of-use assets Income not accrued due to non-culmination of financing Net credit loss allowance against non-performing Islamic financing and related assets Provision against non-banking assets acquired in satisfaction of claims and others 21.2 21.1 Credit loss allowance against off-balance sheet obligations 21.1 During the period,the Bank reversed Rs. 10,900 million on account of an estimate for variable remuneration relating to prior years based on the assessment finalised during the current period.
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36 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 94,420,353 2,249,549,999 1,802,000 2,345,772,352 30,395 59,572,903 34,817,055 94,420,353 225,173,973 163,799,269 388,973,242 1,550,230,862 308,234,388 388,973,242 967,072 1,144,435 1,550,230,862 2,249,549,999 78,286,827 1,810,593,972 1,802,000 1,890,682,799 30,395 53,520,467 24,735,965 78,286,827 163,944,780 116,941,640 280,886,420 1,158,651,468 369,351,453 280,886,420 799,899 904,732 1,158,651,468 1,810,593,972 Commitments in respect of financing (including irrevocable commitments) Documentary letters of credit Commitments in respect of: - forward foreign exchange transactions Commitments for acquisition of: - property and equipment - intangible assets Other commitments Commitments in respect of forward foreign exchange contracts NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) September 30, 2025 (Unaudited) December 31, 2024 (Audited) SURPLUS ON REVALUATION OF ASSETS - NET OF TAX Surplus on revaluation of: - Securities measured at FVOCI - Debt - Securities measured at FVOCI - Equity Less: Deferred tax surplus on revaluation of: - Securities measured at FVOCI - Debt - Securities measured at FVOCI - Equity CONTINGENCIES AND COMMITMENTS - Guarantees - Commitments - Other contingent liabilities Guarantees: Financial guarantees Performance guarantees Other guarantees 22 28,380,101 7,563,300 35,943,401 (14,757,653) (3,932,916) (18,690,569) 17,252,832 41,309,631 4,817,853 46,127,484 (21,481,008) (2,505,284) (23,986,292) 22,141,192 23 23.1 23.2 23.2.1 23.2.2 23.2.2 23.2.1 23.1 23.2 23.3 9.1 9.1
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37 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) The Income Tax Department amended the deemed assessment orders of the Bank for prior years including the tax year 2024. The additions / disallowances were mainly due to allocation of expenses relating to dividends and capital gain, allowability of provision against Islamic financing and related assets, provision against investments and provision against other assets. In the amended order for tax year 2015, additional issues with respect to the taxability of gain on bargain purchase, non-adjustment of loss pertaining to HSBC Bank Middle East – Pakistan Branches and the levy of super tax were also raised. The matter has been decided in Bank's favour by Appellate Tribunal Inland Revenue. Both the Bank and the tax department filed a reference with the High Court of Sindh in respect of the aforementioned matters. The management of the Bank, in consultation with its tax advisors, is confident that the decision in respect of the above matters would be in Bank’s favour and accordingly no provision has been made in these unconsolidated financial statements with respect thereto. The additional tax liability in respect of gain on bargain purchase and non-adjustment of loss pertaining to HSBC Bank Middle East – Pakistan Branches is Rs 1,096 million and Rs 706 million respectively. 23.3 Other contingent liabilities The income on Ijarah under IFAS 2 is net of takaful of Rs 2,346 million (September 30, 2024: Rs 1,367 million) recovered from customers. 24.1 This includes conversion cost of Rs 1,801 million (September 30, 2024: conversion cost of Rs 3,916 million) against foreign currency deposits. 25.1 September 30, 2025 (Unaudited) September 30, 2024 (Unaudited) (Restated) 116,482,264 3,503,995 22,905,701 18,484,894 2,811,998 164,188,852 Deposits and other accounts Sub-ordinated Sukuks Shariah Compliant Open Market Operations and Standing Ceiling Facility from the State Bank of Pakistan Other Musharakahs / Mudarabas Amortisation of lease liability against right-of-use assets PROFIT / RETURN ON DEPOSITS AND OTHER DUES EXPENSED 25 79,734,782 1,846,158 29,031,447 10,192,532 3,080,829 123,885,748 412,295 196,804,184 181,116,647 378,333,126 - Fair Value through Profit and Loss - Fair value through other comprehensive income - Amortised cost Profit / return recorded on financial assets measured at:24.2 107,264 189,168,054 122,838,383 312,113,701 September 30, 2025 (Unaudited) September 30, 2024 (Unaudited) (Restated) Profit / return earned on: - Financing - Investments - Deposits / placements with financial institutions 139,740,940 235,469,860 3,122,326 378,333,126 111,878,461 196,624,619 3,610,621 312,113,701 24.1 24.2 25.1 PROFIT / RETURN EARNED ON ISLAMIC FINANCING AND RELATED ASSETS, INVESTMENTS AND PLACEMENTS
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38 Trade related income pertains to corporate, commercial and SME segments. Branch banking fees pertain to retail banking segment while debit card fees pertain to alternative delivery channel segment. 26.1 3,678,565 175,612 2,585,485 74,222 6,889,908 403,232 335,003 321,786 888,684 5,838 15,358,335 4,526,596 287,288 2,930,403 88,413 6,757,144 688,710 427,227 326,191 746,757 4,765 16,783,494 September 30, 2025 (Unaudited) September 30, 2024 (Unaudited) 26 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) FEE AND COMMISSION INCOME 26.1 26.1 26.1 September 30, 2025 (Unaudited) September 30, 2024 (Unaudited) (Restated) 288,905 (6,206) 282,699 1,012,099 15,546 1,027,645 27.1 27.2 21.1 - designated upon initial recognition - mandatorily measured at FVTPL Net gain on financial assets measured at FVOCI 581,808 304,852 3,440 890,100 664,545 376,027 4,323 1,044,895 37,251,260 1,942,379 150,949 2,649,235 1,325,972 931,374 961,105 48,664 8,009,678 1,839,375 311,570 1,295,958 500,516 290,603 4,238,022 26,172,371 2,123,652 131,860 2,027,148 1,595,991 1,241,178 1,074,583 43,849 8,238,261 2,327,604 550,727 1,558,240 592,403 271,141 5,300,115 OTHER INCOME Gain on termination of Islamic financing Gain on sale of property and equipment Others 28 OPERATING EXPENSES Total compensation expense Property expense Depreciation on right-of-use assets Rent and taxes Utilities cost (including electricity and diesel) Security (including guards) Repair and maintenance (including janitorial charges) Depreciation Others (including takaful expense) Information technology expenses Software maintenance Hardware maintenance Depreciation Amortisation Network charges 29 Realised gain on: 284,874 4,031 288,905 1,012,099 - 1,012,099 Federal Government securities Associates 27.1 GAIN ON SECURITIES Realised - net Unrealised measured at FVTPL - net 27 - (6,206) (6,206) 284,874 278,668 - 15,546 15,546 1,012,099 1,027,645 Trade related fees and commissions Commission on guarantees Branch banking customer fees Credit related fees Debit card related fees Investment banking related fees Commission on cash management Commission on home remittances Wealth management fees Others Net gain on financial assets measured at FVTPL27.2
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39 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) September 30, 2025 (Unaudited) September 30, 2024 (Unaudited) 428,477 1,438,011 219,514 (21,369) - 17,080 51,362 196,869 (1,440) 1,900,027 59,195 10.7.1 9.2 14.1.1 September 30, 2025 (Unaudited) September 30, 2024 (Unaudited) 1,948,458 615,602 1,476,991 2,081,414 107,966 218,966 1,512,979 1,157,609 2,160,141 267,778 87,374 4,416 614,083 211,507 503,442 73,292 302,165 27,027 31,035 38,758 46,840 347 13,488,190 62,987,150 1,678,900 1,632,230 1,585,008 2,592,616 121,277 346,738 3,826,462 1,486,194 3,706,254 261,181 127,836 - 894,094 340,987 565,503 91,634 289,309 22,091 50,100 50,003 43,930 1,574 19,713,921 59,424,668 30 31 CREDIT LOSS ALLOWANCE / PROVISIONS AND WRITE OFFS / (REVERSAL OF PROVISIONS / CREDIT LOSS ALLOWANCE) - NET Net credit loss allowance / reversal of provisions against non-performing Islamic financing and related assets Net reversal of provisions / credit loss allowance against investments Net credit loss allowance against cash and balance with treasury banks Net credit loss allowance against due from financial institution Net credit loss allowance against balances with other banks Net credit loss allowance against other assets Net credit loss allowance against off-balance sheet obligations and other liabilities Recovery of written off financing 89,182,574 - (2,642,775) 86,539,799 3,553,330 (6,085) (3,149) 213 7,512 68,022 50,496 (36,325) 3,634,014 82,627,272 3,052,764 (5,278,500) 80,401,536 Current Prior years Deferred 32.1 32 The super tax amounting to Rs 16,028 million (September 30, 2024: Rs 17,175 million) has been recorded by the Bank based on taxable income for the period. 32.1 Other operating expenses Stationery and printing (including debit card related cost) Repairs and maintenance Local transportation and car running Depreciation on vehicles, equipment etc. Legal and professional charges NIFT and other clearing charges Marketing, advertisement and publicity Security charges - cash transportation Communication (including courier) Travelling and conveyance Training and development Donations Fees, subscription and other charges Brokerage and bank charges Office supplies Entertainment Takaful expense Outsourced services costs Auditors' remuneration Fees and allowances to Shariah Board Directors' fee and allowances Others
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40 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) 1,803,138,025 42.74 34.1 6 7 16.1 September 30, 2025 (Unaudited) September 30, 2024 (Unaudited) (Restated) 77,063,196 1,792,245,992 43.00 Profit for the period DILUTED EARNINGS PER SHARE FAIR VALUE MEASUREMENTS Profit for the period Overdrawn Nostros Weighted average number of ordinary shares (adjusted for effects of all dilutive potential ordinary shares) 33 34 1,792,245,992 10,892,033 1,803,138,025 Reconciliation of basic and diluted earning per share Weighted average number of ordinary shares Add: Diluted impact of Employee stock option scheme Dilutive potential ordinary shares 1,807,175,946 77,063,196 67,225,794 37.20 67,225,794 1,796,380,529 37.42 1,796,380,529 10,795,417 1,807,175,946 34.1 September 30, 2025 (Unaudited) September 30, 2024 (Unaudited) 252,067,263 14,236,838 (827,791) 265,476,310 279,155,077 19,193,486 (1,200,374) 297,148,189 Fair value measurement defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of quoted securities other than those classified as amortised cost, is based on quoted market price. Quoted debt securities classified as amortised cost are carried at cost. The fair value of unquoted equity securities, other than investments in associates and subsidiaries, is determined on the basis of valuation methodologies. The fair value of fixed term financings, other assets, other liabilities, fixed term deposits and due to financial institutions 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. 35 36 The Bank has received advance against issue of 5,813,938 (September 30, 2024: 3,487,520) shares amounting to Rs 417.509 million (September 30, 2024: 258.89 million) under employees share option scheme. These shares were issued in July 2025 (September 30, 2024: July 2024). 34.2
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41 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) Carrying value Fair value 1,777,142 1,088,793 - - 1,777,142 1,088,793 - - 1,777,142 1,088,793 September 30, 2025 (Unaudited) September 30, 2025 (Unaudited) Carrying value Fair value 2,109,540,990 13,138,580 126,267,615 8,084,747 2,257,031,932 1,125,645,048 12,660,480 114,306,168 - 1,252,611,696 982,877,670 96,965 2,133,594 8,074,358 993,182,587 1,018,272 381,135 9,827,853 10,389 11,237,649 2,109,540,990 13,138,580 126,267,615 8,084,747 2,257,031,932 On balance sheet financial instruments Financial assets - measured at fair value Investments - Federal Government securities - Shares / units of mutual funds - Non Government Sukuks - Foreign Securities 253,871,209 253,871,209 2,510,903,141 - - 1,252,611,696 64,882,278 64,882,278 1,058,064,865 189,615,783 189,615,783 200,853,432 254,498,061 254,498,061 2,511,529,993 Financial assets - disclosed but not measured at fair value Investments - Federal Government securities 36.1 Fair value of financial instruments 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). The table below analyses financial instruments measured as at September 30, 2025 and December 31, 2024 by the level in the fair value hierarchy into which the fair value measurement is categorised. Off-balance sheet financial instruments - measured at fair value Forward purchase of foreign exchange Forward sale of foreign exchange In the opinion of the management, the fair value of the remaining financial assets and liabilities are not significantly different from their carrying values since these are either short-term in nature or, in the case of customer financings and deposits, are frequently repriced.
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42 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) September 30, 2025 (Unaudited) Carrying value Fair value 498,450 498,450 - - - - 498,450 498,450 498,450 498,450 December 31, 2024 (Audited) Carrying value Fair value 498,450 498,450 - - - - 498,450 498,450 498,450 498,450 Non-banking assets acquired in satisfaction of claims Non-banking assets acquired in satisfaction of claims Fair value of non-financial assets36.2 2,038,729 1,353,309 - - 2,038,729 1,353,309 - - 2,038,729 1,353,309 December 31, 2024 (Audited) Carrying value Fair value 1,359,467,076 11,197,572 131,254,670 3,968,059 1,505,887,377 555,352,527 10,513,112 118,045,677 - 683,911,316 799,336,050 66,633 2,897,726 3,957,670 806,258,079 4,778,499 617,827 10,311,267 10,389 15,717,982 1,359,467,076 11,197,572 131,254,670 3,968,059 1,505,887,377 On balance sheet financial instruments Financial assets - measured at fair value Investments - Federal Government securities - Shares / units of mutual funds - Non Government Sukuks - Foreign Securities 362,725,910 362,725,910 1,868,613,287 - - 683,911,316 343,031,635 343,031,635 1,149,289,714 21,053,574 21,053,574 36,771,556 364,085,209 364,085,209 1,869,972,586 Financial assets - disclosed but not measured at fair value Investments - Federal Government securities Off-balance sheet financial instruments - measured at fair value Forward purchase of foreign exchange Forward sale of foreign exchange
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43 Non-banking assets acquired in satisfactions of claims are carried at revalued amounts (level 3 measurement) determined by professional valuers based on their assessment of the market values. The Bank's policy is to recognise transfers into and out of the different fair value hierarchy levels at the date the event or change in circumstances that caused the transfer occurred. There were no transfers between levels 1 and 2 during the period. The valuation of non-banking assets acquired in satisfaction of claims, mentioned above, is conducted by the valuation expert appointed by the Bank which is also on the panel of the Pakistan Banks' Association (PBA). The valuation expert uses a market based approach to arrive at the fair value of the Bank's non-banking asset acquired in satisfaction of claims. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable or similar properties. This value is adjusted to reflect the current condition of the property. The effect of changes in the unobservable inputs used in the valuation cannot be determined with certainty, accordingly a quantitative disclosure of sensitivity has not been presented in these unconsolidated condensed interim financial statements. The sensitivity analysis of the fair value measurement of unquoted equity securities due to changes in observable inputs has not been disclosed as the amount is not material and significant. "The fair value of GoP Ijarah sukuks listed on Pakistan Stock Exchange has been determined through closing rates of Pakistan Stock Exchange. The fair value of other GoP Ijarah sukuks are derived using PKISRV rates. The PKISRV rates are announced by FMA (Financial Market Association) through Reuters. The rates announced are simple average of quotes received from eight different pre-defined / approved dealers / brokers. " The valuation has been determined by interpolating the mid rates announced by SBP . These are measured at fair value using the rates pubished by the valuation expert (Bloomberg). The valuation has been determined through closing rates of Pakistan Stock Exchange. The valuation has been determined based on Net asset values declared by respective funds. "The value of unquoted equity securities are determined by using different methods for different securities, as applicable. Fair value of investment in Sapphire Electric Company Limited has been determined by Dividend Discount Model (DDM) by using constant dividends streams of the entity by using various key assumptions considering economic and market conditions. Key assumptions include discount rate and terminal growth rate (if applicable). " NBAs are valued by professionally qualified valuers as per the accounting policy disclosed in the unconsolidated financial statements of the Bank for the year ended December 31, 2024. Non-banking assets acquired in satisfaction of claims The valuation has been determined through closing rates announced by FMA (Financial Market Association) through Reuters.Corporate sukuks Unquoted Equity Securities Government of Pakistan (GoP) Ijarah Sukuks FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) Valuation techniques used in determination of fair values36.2.1 Fair value of financial assets 36.2.2 Financial instruments included in level 1 comprises of investments in ordinary shares of listed companies, listed GoP ijarah sukuks and listed non government debt securities traded at Pakistan Stock Exchange. (a) Financial instruments in level 1 Financial instruments included in level 2 comprises of units of open ended mutual fund, GoP ijarah sukuks, foreign sukuks and non government debt securities which are valued through MUFAP . (b) Financial instruments in level 2 Financial instruments included in level 3 comprises of unlisted ordinary shares, Islamic Naya Pakistan Certificates, non government debt securities, Bai muajjal and foreign shares. Valuation techniques are mentioned in the table above. The fair value of Federal Government securities classified at amortised cost, 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. (c) Financial instruments in level 3 36.2.3 Foreign Sukuks
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44 37.1 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) 37 SEGMENT INFORMATION Statement of profit and loss account for the nine months period ended September 30, 2025 (Unaudited) External cost of funds Segment direct expenses Inter segment expense allocation Total expenses (Reversal of provisions / credit loss allowance) / credit loss allowance / provisions and write offs - net Profit before tax Statement of profit and loss account for the nine months period ended September 30, 2024 (Unaudited) Statement of financial position as at December 31, 2024 (Audited) Segment Details with respect to Business Activities 378,333,126 18,208,040 - 396,541,166 7,799,592 3,936,320 347,766,863 359,502,775 236,159,524 1,956,779 - 238,116,303 - 7,812,338 - 7,812,338 - - (347,766,863) (347,766,863) 274,159,208 34,964,299 1,870,535,620 - 1,514,755,936 207,658,068 3,902,073,131 - - - (2,464,197,699) - - (2,464,197,699) - - - (2,464,197,699) - (2,464,197,699) - (2,464,197,699) - 12,089,364 - - 16,951,471 - 1,931,700 30,972,535 - - - - 30,085,063 30,085,063 887,472 30,972,535 - - 34,964,299 1,857,327,056 - - 61,919,007 1,954,210,362 164,188,853 66,849,291 - 231,038,144 1,900,027 163,602,995 120,074,489 59,437,791 - 179,512,280 (71,823) 180,062,318 32,640,505 1,001,594 231,343,949 264,986,048 (9,962) (26,859,783) - 4,368,489 6,280 4,374,769 179,117 3,258,452 - - (347,766,863) (347,766,863) - - 134,374,010 4,502,603 - 138,876,613 11,473,859 2,041,417 116,416,634 129,931,910 1,802,695 7,142,008 2,701,418 - 13,208,564 - 1,432,227,514 51,394,838 1,499,532,334 109,871,661 - 20,990,000 1,236,635,856 37,120,929 1,404,618,446 94,913,888 1,499,532,334 1,522,044,807 259,368,426 - - 2,447,246,228 82,528,422 92,412,523 2,881,555,599 13,102,601 2,584,871,300 - - 256,091,800 2,854,065,701 27,489,898 2,881,555,599 87,751,572 599,312,056 - - 1,227,561,843 3,643,429 1,830,517,328 123,693,034 1,954,210,362 280,886,420 722,286,318 2,584,871,300 20,990,000 - 326,941,221 3,655,088,839 246,984,292 3,902,073,131 1,890,682,799 2025 Retail Banking Trading and Sales Retail Banking Trading and Sales 2024 Statement of financial position as at September 30, 2025 (Unaudited) Equity Equity 312,113,701 25,769,287 - 337,882,988 9,706,837 4,477,776 242,548,333 256,732,946 198,967,818 7,935,134 - 206,902,952 - 7,562,504 286,929 7,849,433 - - (242,835,262) (242,835,262) 298,348,563 42,503,857 2,512,825,474 - 1,129,211,868 253,084,776 4,235,974,538 - - - (2,950,218,281) - - (2,950,218,281) - - - (2,950,218,281) - (2,950,218,281) - (2,950,218,281) - 4,555,081 - - 16,390,159 - 4,027,834 24,973,074 - - - - 24,420,336 24,420,336 552,738 24,973,074 - - 42,503,857 2,500,864,633 - - 111,323,574 2,654,692,064 123,885,748 62,735,896 - 186,621,644 3,634,014 147,627,330 83,639,995 51,392,431 - 135,032,426 60,551 121,639,969 34,964,526 2,964,610 156,378,458 194,307,594 (7,900) 12,603,258 - 6,817,896 - 6,817,896 73,897 957,640 - - (242,835,262) (242,835,262) - - 103,439,046 5,793,873 - 109,232,919 5,281,227 1,560,959 86,456,804 93,298,990 3,507,466 12,426,463 6,043,119 - 11,960,841 - 1,012,000,604 44,062,719 1,074,067,283 91,591,858 - 16,990,000 862,979,918 33,335,753 1,004,897,529 69,169,754 1,074,067,283 1,952,885,603 287,750,363 - - 2,933,828,122 117,211,264 93,670,649 3,432,460,398 13,221,168 3,176,286,193 - - 210,841,202 3,400,348,563 32,111,835 3,432,460,398 3,913,507 394,274,492 - - 2,087,238,363 2,217,484 2,483,730,339 170,961,725 2,654,692,064 388,973,242 499,087,518 3,176,286,193 16,990,000 - 270,814,775 3,963,178,486 272,796,052 4,235,974,538 2,345,772,352 Total Income (Reversal of provisions / credit loss allowance) / credit loss allowance / provisions and write offs - net
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45 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) Associates include mutual funds managed by Al Meezan Investment Management Limited and entities having common director- ship with the Board. However, entities are not considered related party only if common director is an independent director working on both the Boards. Details of transactions with related parties during the period / year and balances with them (other than those disclosed in respective notes) as at the period / year end as are follows: 38.4 38.5 38.6 September 30, 2025 (Unaudited) Dec 31, 2024 (Audited) September 30, 2025 (Unaudited) Dec 31, 2024 (Audited) September 30, 2025 (Unaudited) Dec 31, 2024 (Audited) September 30, 2025 (Unaudited) Dec 31, 2024 (Audited) September 30, 2025 (Unaudited) Subsidiaries Directors and close family members Key management personnel and close family members Dec 31, 2024 (Audited) September 30, 2025 (Unaudited) Dec 31, 2024 (Audited) Islamic financing and related assets At January 1, Addition during the period / year Repayments / maturities during the period / year At September 30, December 31 82,900 - (3,372) 79,528 33,002,164 3,522,664 (36,441,928) 82,900 - - - - - - - - - - - - 32,914,968 3,522,664 (36,437,632) - - - - - - - - - 82,900 - (3,372) 79,528 87,196 - (4,296) 82,900 - - - - - - - - Investments At January 1, Addition during the period / year Repayment / redemption during the period / year At September 30, December 31 1,922,333 - - 1,922,333 908,302 1,015,000 (969) 1,922,333 1,063,050 - - 1,063,050 63,050 1,000,000 - 1,063,050 859,283 - - 859,283 845,252 15,000 (969) 859,283 - - - - - - - - - - - - - - - - - - - - - - - - Deposits Other Assets Profit receivable on financing / investments / placements Fee, dividend and other receivable Credit loss allowance / provision held against other assets 12,059,406 33 435,417 69 8,477,554 44 294,119 45 639,285 - 367,605 50 287,629 - 235,786 32 10,063,289 - 67,812 9 6,758,697 - 58,333 8 90,017 - - - 251,138 - - - 169,926 33 - 10 75,745 44 - 5 1,096,889 - - - 1,104,345 - - - Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions and includes subsidiary companies, associated companies, retirement benefit funds, directors, and key management personnel and their close family members. The Banks enter into transactions with related parties in the ordinary course of business and on substantially the same terms as for comparable transactions with person of similar standing. Contributions to and accruals in respect of staff retirement benefits and other benefit plans are made in accordance with the actuarial valuations / terms of the contribution plan. Remuneration and other benefit to the key management personnel is determined in accordance with the terms of their appointment. 38 38.1 38.2 38.3 RELATED PARTY TRANSACTIONS Subsidiary companies - Al Meezan Investment Management Limited - Meezan Exchange Company (Private) Limited - President and Chief Executive Officer - Deputy Chief Executive Officer
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46 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) Due to financial institutions At January 1, Addition during the period / year Repayment / redemption during the period / year At September 30, December 31 47,130,000 226,303,000 (238,430,000) 35,003,000 - 643,630,000 (596,500,000) 47,130,000 - - - - - - - - 47,130,000 226,303,000 (238,430,000) 35,003,000 - 643,630,000 (596,500,000) 47,130,000 - - - - - - - - - - - - - - - - - - - - - - - - Sub-ordinated Sukuks At January 1, Addition during the period / year Repayment / redemption / during the period / year At September 30, December 31 210,000 - - 210,000 210,000 - - 210,000 - - - - - - - - 210,000 - - 210,000 210,000 - - 210,000 - - - - - - - - - - - - - - - - - - - - - - - - Other liabilities Payable to defined benefit plan Accrued Expenses Profit payable on musharakah acceptance Contingencies and Commitments Letters of Guarantee (unfunded) 2,169,804 20,458 71,365 2,500,100 - 6,600 - 100 - 7,398 71,365 2,500,000 - 6,460 - - 1,269,440 - - - 900,364 - - - 2,153,351 4,550 256,364 100 - 2,200 - 100 - - 256,364 - - 2,350 - - 808,528 - - - 1,344,823 - - - September 30, 2025 (Unaudited) Dec 31, 2024 (Audited) September 30, 2025 (Unaudited) Dec 31, 2024 (Audited) September 30, 2025 (Unaudited) Dec 31, 2024 (Audited) September 30, 2025 (Unaudited) Dec 31, 2024 (Audited) September 30, 2025 (Unaudited) Dec 31, 2024 (Audited) September 30, 2025 (Unaudited) Dec 31, 2024 (Audited) Subsidiaries Directors and close family members Key management personnel and close family members
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47 September 30, 2025 (Unaudited) September 30, 2024 (Unaudited) September 30, 2025 (Unaudited) September 30, 2024 (Unaudited) September 30, 2025 (Unaudited) September 30, 2024 (Unaudited) September 30, 2025 (Unaudited) September 30, 2024 (Unaudited) September 30, 2025 (Unaudited) September 30, 2024 (Unaudited) September 30, 2025 (Unaudited) September 30, 2024 (Unaudited)Transactions, income and expenses 3,044 768,024 710,928 1,167,629 1,269,440 773,910 113,456 24 23,737 - - 18,846 - 273,095 43,930 - 8,491 - 633,893 650,000 14,728 - - - 18 22,091 - - 18,846 - - - - - - 133,913 60,928 1,006,269 - - - 1 1,646 - - - - - - - - - 13 - 3,171 - - - - - - - - - - 43,930 - - 3,044 173 - 5,956 - - - 5 - - - - - 273,095 - - 8,491 - 32 - 137,505 1,269,440 773,910 113,456 - - - - - - - - - - 2,360,340 903,679 595,862 1,802,685 559,400 638,145 90,156 3,697 28,603 4,031 1,000 64,149 32,845 325,594 46,840 7,261 9,431 - 420,833 260,000 32,581 - - - 27 27,027 - - 64,149 - - - - - 2,357,134 482,617 335,862 1,676,280 - - - 3,659 1,576 4,031 1,000 - 32,845 - - - - - 12 - 3,403 - - - - - - - - - - 46,840 - - 3,206 127 - 8,731 - - - 11 - - - - - 325,594 - 7,261 9,431 - 90 - 81,690 559,400 638,145 90,156 - - - - - - - - - - Profit earned on financing / investments / placements Fees and other income earned Dividend income earned Return on deposits / acceptance expensed Charge for defined benefit plan Contribution to defined contribution plan Contribution to staff benevolent fund (Reversal of provisions / credit loss allowance) / credit loss allowance / provision and write offs - net (including recognised directly in unappropriated profit) Fees expensed Capital gain - net Charity paid Expenses paid on behalf of Meezan Exchange Company Private Limited Purchase of property and equipment Remuneration to key management personnel Fee to non-executive directors Proceeds from sale of property and equipment Proceed against issue of shares Subsidiaries Directors and close family members Key management personnel and close family members Balances pertaining to parties that were related at the beginning of the year but ceased to be related during any part of the current period are not reflected as part of the closing balance. However, new related parties have been added during the period. The same are accounted for through the movement presented above. FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
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48 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) Comparative information has been re-classified, re-arranged or additionally incorporated in these unconsolidated condensed interim financial statements, wherever necessary to facilitate comparison. 40 CORRESPONDING FIGURES The Board of Directors in their meeting held on October 24, 2025 has announced interim cash dividend of Rs 7 per share 70%. These unconsolidated condensed interim financial statements does not include the effect of this appropriation which will be accounted for subsequent to the period end. 40.1 The effects of restatement due to adoption of IFRS 9 is mentioned in note 5.1.1 of these unconsolidated condensed interim financial statements. 40.2 41 NON-ADJUSTING EVENT These unconsolidated condensed interim financial statements were authorised for issue on October 24, 2025, by the Board of Directors of the Bank. 42 DATE OF AUTHORISATION September 30, 2025 (Unaudited) December 31, 2024 (Audited) 39 CAPITAL ADEQUACY , LEVERAGE RATIO & LIQUIDITY REQUIREMENTS Minimum Capital Requirement (MCR) Paid-up capital (net of losses) Capital Adequacy Ratio Eligible Common Equity Tier 1 (CET 1) Capital Eligible Additional Tier 1 (ADT 1) Capital Total Eligible Tier 1 Capital Eligible Tier 2 Capital Total Eligible Capital (Tier 1 + Tier 2) Leverage ratio (LR): Tier-1 Capital Total Exposures Leverage Ratio Liquidity Coverage Ratio (LCR): Total High Quality Liquid Assets Total Net Cash Outflow Liquidity Coverage Ratio Net Stable Funding Ratio (NSFR): Total Available Stable Funding Total Required Stable Funding Net Stable Funding Ratio Risk weighted assets (RWAs): Credit Risk Market Risk Operational Risk Total Common Equity Tier 1 Capital Adequacy ratio Tier 1 Capital Adequacy Ratio Total Capital Adequacy Ratio 17,947,407 221,804,077 7,000,000 228,804,077 47,135,239 275,939,316 228,804,077 4,186,333,675 5.47% 1,320,749,145 433,217,397 305% 2,572,046,020 1,453,475,186 177% 880,323,774 36,391,197 439,129,711 1,355,844,682 16.36% 16.88% 20.35% 18,005,546 251,939,135 7,000,000 258,939,135 36,958,822 295,897,957 258,939,135 4,830,843,961 5.36% 1,946,936,571 579,457,821 336% 3,057,048,455 1,222,948,482 250% 777,279,175 50,193,009 439,129,711 1,266,601,895 19.89% 20.44% 23.36% Syed Imran Ali Shah Chief Financial OfficerDirector Mohammad Abdul Aleem Director Bader H.A.M.A. AlRabiah President & Chief Executive Irfan Siddiqui Chairman Riyadh S. A. A. Edrees Syed Imran Ali Shah Chief Financial OfficerDirector Mohammad Abdul Aleem President & Chief Executive Irfan Siddiqui Chairman Riyadh S. A. A. Edrees
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Syed Imran Ali Shah Chief Financial OfficerDirector Mohammad Abdul Aleem Director Bader H.A.M.A. AlRabiah President & Chief Executive Irfan Siddiqui Chairman Riyadh S. A. A. Edrees 50 AS AT SEPTEMBER 30, 2025 September 30, 2025 (Unaudited) December 31, 2024 (Audited) 260,873,367 13,290,726 34,964,299 1,878,852,841 1,514,755,936 47,226,503 21,622,622 2,960,432 - 137,641,875 3,912,188,601 112,605,407 722,286,318 2,584,583,671 26,286,276 20,990,000 15,530,758 176,275,951 3,658,558,381 253,630,220 17,947,407 48,026,583 22,141,192 163,601,395 251,716,577 1,913,643 253,630,220 279,449,368 19,077,065 42,503,857 2,525,137,927 1,129,211,868 49,541,528 21,549,194 3,388,659 - 179,650,670 4,249,510,136 59,890,731 499,087,518 3,175,646,908 27,846,435 16,990,000 5,580,421 182,064,410 3,967,106,423 282,403,713 18,005,546 55,603,161 17,252,832 188,777,300 279,638,839 2,764,874 282,403,713 CONDENSED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION ASSETS Cash and balances with treasury banks Balances with other banks Due from financial institutions Investments Islamic financing and related assets Property and equipment Right-of-use assets Intangible assets Deferred tax asset Other assets Total Assets LIABILITIES Bills payable Due to financial institutions Deposits and other accounts Lease liability against right-of-use assets Sub-ordinated sukuk Deferred tax liabilities Other liabilities Total Liabilities NET ASSETS REPRESENTED BY Share capital Reserves Surplus on revaluation of assets - net of tax Unappropriated profit Non-controlling Interest The annexed notes 1 to 3 form an integral part of these consolidated condensed interim financial statements.
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Syed Imran Ali Shah Chief Financial OfficerDirector Mohammad Abdul Aleem Director Bader H.A.M.A. AlRabiah President & Chief Executive Irfan Siddiqui Chairman Riyadh S. A. A. Edrees Syed Imran Ali Shah Chief Financial OfficerDirector Mohammad Abdul Aleem President & Chief Executive Irfan Siddiqui Chairman Riyadh S. A. A. Edrees 51 FOR THE QUARTER AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 CONDENSED INTERIM CONSOLIDATED STATEMENT OF PROFIT AND LOSS ACCOUNT (UNAUDITED) OTHER INCOME Fee and commission income Dividend income Foreign exchange income Gain on securities Other income Total other income Total income Basic earnings per share Diluted earnings per share OTHER EXPENSES Operating expenses Workers Welfare Fund Other charges Total other expenses Share of profit of associates Profit before credit loss allowance / provisions Credit loss allowance / provisions and write offs / (reversal of provisions / credit loss allowance) - net Extra ordinary / unusual items Profit Before Taxation Taxation Profit After Taxation Attributable to: Shareholders of the Holding company Non-controlling interest Nine Months period ended September 30, 2025 Nine Months period ended September 30, 2024 (Restated) 378,341,563 164,189,149 214,152,414 18,322,631 487,514 608,280 282,699 898,109 20,599,233 234,751,647 43.42 43.16 312,125,967 123,913,692 188,212,275 21,842,864 232,477 5,987,429 1,028,789 1,146,405 30,237,964 218,450,239 64,510,548 3,480,187 444,129 68,434,864 166,316,783 1,278,119 167,594,902 1,900,586 - 165,694,316 87,363,215 78,331,101 77,820,753 510,348 78,331,101 61,899,172 3,346,820 67,571 65,313,563 153,136,676 3,203,771 156,340,447 3,634,014 - 152,706,433 82,184,208 70,522,225 69,326,350 1,195,875 70,522,225 38.59 38.36 Quarter ended September 30, 2025 Quarter ended September 30, 2024 (Restated) 128,662,424 52,013,231 76,649,193 6,992,921 (168,678) 29,096 (745,177) 290,333 6,398,495 83,047,688 14.52 14.43 102,590,715 40,119,278 62,471,437 7,817,992 59,268 2,748,867 359,485 342,327 11,327,939 73,799,376 22,131,306 1,226,242 310,610 23,668,158 59,379,530 1,484,090 60,863,620 2,572,787 - 58,290,833 32,081,432 26,209,401 26,021,295 188,106 26,209,401 26,522,926 1,129,190 4,689 27,656,805 46,142,571 2,492,557 48,635,128 255,422 - 48,379,706 24,997,843 23,381,863 22,722,036 659,827 23,381,863 12.65 12.57 Profit / return earned on Islamic financing and related assets, investments and placements Profit on deposits and other dues expensed Net profit / return (Restated)(Restated) The annexed notes 1 to 3 form an integral part of these consolidated condensed interim financial statements.
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Syed Imran Ali Shah Chief Financial OfficerDirector Mohammad Abdul Aleem Director Bader H.A.M.A. AlRabiah President & Chief Executive Irfan Siddiqui Chairman Riyadh S. A. A. Edrees Syed Imran Ali Shah Chief Financial OfficerDirector Mohammad Abdul Aleem President & Chief Executive Irfan Siddiqui Chairman Riyadh S. A. A. Edrees 52 FOR THE QUARTER AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) Profit after taxation for the period attributable to: Shareholders of the Holding company Non-controlling interest Other Comprehensive Income / (loss) Items that may be reclassified to statement of profit and loss account in subsequent periods: - Movement in surplus / (deficit) on revaluation of debt investments through FVOCI - net of tax - Gain on sale of debt investments carried at FVOCI reclassified to the statement of profit or loss account - net of tax Items that will not be reclassified to statement of profit and loss account in subsequent periods: - Movement in surplus on revaluation of equity investments through FVOCI - net of tax - Remeasurement of defined benefit plan - net of tax Total comprehensive income for the period Attributable to: Shareholders of the Holding company Non-controlling interest Nine Months period ended Septemeber 30, 2024 (Restated) Nine Months period ended Septemeber 30, 2025 77,820,753 510,348 78,331,101 5,994,714 (145,286) 604,892 (14,485) 84,770,936 84,265,658 505,278 84,770,936 69,326,350 1,195,875 70,522,225 (5,730,488) (475,687) 1,556,044 15,302 65,887,396 64,686,165 1,201,231 65,887,396 Quarter ended Septemeber 30, 2024 (Restated) Quarter ended Septemeber 30, 2025 26,021,295 188,106 26,209,401 8,902,538 (86,373) 7,533 - 35,033,099 34,844,993 188,106 35,033,099 22,722,036 659,827 23,381,863 (1,372,596) (161,326) 1,226,908 - 23,074,849 22,415,022 659,827 23,074,849 Rupees in 000 The annexed notes 1 to 3 form an integral part of these consolidated condensed interim financial statements.
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53 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Balance as at January 01, 2024 (Audited) Impact of adoption of IFRS 9 - net of tax Profit after taxation for the nine months period ended September 30, 2024 - Restated Other comprehensive income / (loss) for the nine months period ended September 30, 2024 - net of tax - Movement in surplus / (deficit) on revaluation of investments in debt instruments at FVOCI - net of tax - Loss on sale of debt investments carried at FVOCI reclassified to statement profit or loss account - net of tax - Remeasurement of post retirement benefits obligation - net of tax - Movement in surplus on revaluation of equity investments carried at FVOCI - net of tax Total other comprehensive income/(loss) - net of tax Transfer from surplus on revaluation of assets to unapprorpriated profit - net of tax Recognition of share based compensation Other appropriations Transfer to statutory reserve* Transactions with owners recognised directly in equity Final cash dividend for the year 2023 @ Rs 8 per share Frist interim cash dividend for the year 2024 @ Rs 7 per share Second interim cash dividend for the year 2024 @ Rs 7 per share Dividend payout by Subsidiary Issue of 3,487,520 shares under the Employees shares option scheme Balance as at September 30, 2024 (Unaudited) - restated Profit after taxation for the quarter ended December 31, 2024 - Restated Other Comprehensive income / (loss) for the quarter ended December 31, 2024 - net of tax - Movement in surplus on revaluation of investments in debt instruments at FVOCI - net of tax - Loss on sale of debt investments carried at FVOCI reclassified to profit or loss account - net of tax -Remeasurement loss on valuation of employee retirement benefits - Movement in surplus on revaluation of equity investments carried at FVOCI - net of tax Total other comprehensive income / (loss) - net of tax Transfer from surplus evaluation of assets to unapprorpriated profit - net of tax Recognition of share based compensation Other appropriations Transfer to statutory reserve* Transactions with owners recognised directly in equity Third interim cash dividend for the year 2024 @ Rs 7 per share Dividend payout by Subsidiary Balance as at December 31, 2024 (Audited) 17,912,532 - - - - - - - - - - - - - - 34,875 17,947,407 2,626,441 - - - - - - - - - - - - - - 477,812 3,104,253 30,617,082 - - - - - - - - - 7,706,320 - - - - - 38,323,402 3,117,547 - - - - - - - - - - - - - - - 3,117,547 654,321 - - - - - - - - 422,024 - - - - - (299,231) 777,114 91,082 - - - - - - - - - - - - - - - 91,082 10,920,597 1,188,390 - 5,994,714 (145,286) - 604,892 6,454,320 (512,979) - - - - - - - 18,050,328 - - - - - - - - - - - - - - - - - 122,528,058 25,760 77,820,753 - - (9,415) - (9,415) 512,979 - (7,706,320) (14,330,026) (12,538,773) (12,563,185) (39,431,984) - 45,432 153,785,263 1,549,609 - 510,348 - - (5,070) - (5,070) - - - - - - (140,000) - 1,914,887 190,017,269 1,214,150 78,331,101 5,994,714 - (145,286) (14,485) - 604,892 6,439,835 - 422,024 - (14,330,026) (12,538,773) (12,563,185) (39,431,984) (140,000) 258,888 237,111,283 - - - - - - - - - - - 17,947,407 - - - - - - - - - - - 3,104,253 - - - - - - - - 2,444,432 - - 40,767,834 - - - - - - - - - - - 3,117,547 - - - - - - - 168,753 - - - 945,867 - - - - - - - - - - - 91,082 - 4,096,974 (1,468,194) - 1,626,243 4,255,023 (164,159) - - - 22,141,192 24,868,328 - - (208,738) - (208,738) 164,159 - (2,444,432) (12,563,185) - 163,601,395 519,906 - - - - - - - - (521,150) 1,913,643 25,388,234 4,096,974 (1,468,194) (208,738) 1,626,243 4,046,285 - 168,753 - (12,563,185) (521,150) 253,630,220 - - - - - - - - - - - - Capital reserves Share premium Statutory reserve * Non - Distributable Capital Reserve - Gain on Bargain Purchase Employee share option compensation reserve General reserve Revenue reserve Unappro- priated profit Total Investments Non- banking Assets Surplus / (deficit) on revalution of Rupees in 000 Share capital Non controlling interest
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Syed Imran Ali Shah Chief Financial OfficerDirector Mohammad Abdul Aleem Director Bader H.A.M.A. AlRabiah President & Chief Executive Irfan Siddiqui Chairman Riyadh S. A. A. Edrees Syed Imran Ali Shah Chief Financial OfficerDirector Mohammad Abdul Aleem President & Chief Executive Irfan Siddiqui Chairman Riyadh S. A. A. Edrees 54 Balance as at December 31, 2024 (Audited) Profit after taxation for the nine months period ended September 30, 2025 Other comprehensive income / (loss) for the nine months period ended September 30, 2025 - net of tax - Movement in deficit on revaluation of investments in debt instruments at FVOCI - net of tax - Loss on sale of Debt investments at FVOCI – reclassified to profit or loss - net of tax - Remeasurement of post retirement benefits obligation - net of tax - Movement in surplus on revaluation of investments in equity instruments at FVOCI - net of tax Total other comprehensive loss - net of tax Transfer from revaluation of assets to unapprorpriated profit - net of tax Recognition of share based compensation Other appropriations Transfer to statutory reserve* Transactions with owners recognised directly in equity Final cash dividend for the year 2024 @ Rs 7 per share First interim cash dividend for the year 2025@ Rs 7 per share Second interim cash dividend for the year 2025@ Rs 7 per share Dividend payout by Subsidiary Issue of 5,813,938 shares under the Employees shares option scheme Balance as at September 30, 2025 (Unaudited) FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Capital reserves Share premium Statutory reserve * Non - Distributable Capital Reserve - Gain on Bargain Purchase Employee share option compensation reserve General reserve Revenue reserves Unappro- priated profit Total Investments Non- banking Assets Surplus / (deficit) on revalution of Rupees in 000 Share capital Non controlling interest 3,104,253 - - - - - - - - - - - - - - 774,981 3,879,234 40,767,834 - - - - - - - - 6,722,579 - - - - - - 47,490,413 3,117,547 - - - - - - - - - - - - - - - 3,117,547 945,867 - - - - - - - 548,841 - - - - - - (469,823) 1,024,885 91,082 - - - - - - - - - - - - - - - 91,082 22,141,192 - (5,730,488) (475,687) - 1,556,044 (4,650,131) (238,229) - - - - - - - - 17,252,832 - - - - - - - - - - - - - - - - - 163,601,395 69,326,350 - - 9,946 - 9,946 238,229 - (6,722,579) (12,563,185) (12,563,185) (12,603,883) (37,730,253) - 54,212 188,777,300 253,630,220 70,522,225 (5,730,488) (475,687) 15,302 1,556,044 (4,634,829) - 548,841 - (12,563,185) (12,563,185) (12,603,883) (37,730,253) (350,000) 417,509 282,403,713 17,947,407 - - - - - - - - - - - - - - 58,139 18,005,546 1,913,643 1,195,875 - - 5,356 - 5,356 - - - - - - - (350,000) - 2,764,874 The annexed notes 1 to 3 form an integral part of these consolidated condensed interim financial statements.
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55 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 CONDENSED INTERIM CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED) (21,143,666) (136,445,223) 5,256,087 (957,835) 453,097 (10,958,443) (946,101) 497,209 (164,244,875) (3,122,842) - 258,888 (40,257,918) (140,000) (43,261,872) 12,300,950 254,070,476 (32,597) 254,037,879 266,338,829 (133,798,204) (522,393,781) 3,739,677 (791,463) 208,819 (7,736,318) (1,056,440) 753,088 (661,074,622) (3,695,233) (4,000,000) 417,509 (37,731,007) (350,000) (45,358,731) 25,249,619 272,080,803 (4,363) 272,076,440 297,326,059 CASH FLOW FROM INVESTING ACTIVITIES Net (investments) / divestments in amortized cost securities Net investments in securities classified as FVOCI Net divestment in securities classified as FVPL Net investments in associates Dividends received Investments in property and equipment Investments in intangible assets Proceeds from sale of property and equipment Net cash used in investing activities CASH FLOW FROM FINANCING ACTIVITIES Payment of lease liability against right-of-use assets Redemption of subordinated sukuk Proceed against issue of shares Dividend paid to equity shareholders of the Bank Dividend paid to non-controlling interest Net cash used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Expected credit loss allowance on cash and cash equivalents - net Cash and cash equivalents at the end of the period 165,694,316 (487,514) 165,206,802 4,409,879 (217,605,638) 532,700 2,007,655 2,844,608 1,900,586 422,024 6,206 (307,912) (1,278,119) (207,068,011) (41,861,209) - (130,770,248) (2,599,299) (133,369,547) 4,176,313 (39,873,350) 342,224,312 11,149,486 317,676,761 142,446,005 - 329,088,330 (163,669,562) (88,057,076) 219,807,697 152,706,433 (232,477) 152,473,956 5,334,161 (191,335,776) 628,213 2,205,319 3,123,501 3,634,014 548,841 (15,546) (385,331) (3,203,771) (179,466,375) (26,992,419) (7,539,771) 382,027,063 (4,951,090) 369,536,202 (52,714,676) (222,315,884) 591,063,237 1,300,851 317,333,528 659,877,311 275,250,144 (126,168,746) (77,275,737) 731,682,972 Profit before taxation Less: Dividend income Adjustments: Depreciation Net profit / return Amortization Depreciation on right-of-use-assets Amortisation of lease liability against right-of-use assets Credit loss allowance / provisions and write offs / (reversal of provisions / credit loss allowance)-net Share based compensation expense Unrealised gain - FVTPL Gain on sale of property and equipment Share of results of associates Decrease / (Increase) in operating assets Due from financial institutions Islamic financing and related assets Other assets (excluding advance taxation and mark-up receivable) Decrease / (Increase) in operating liabilities Bills payable Due to financial institutions Deposits and other accounts Other liabilities (excluding current taxation and mark-up payable) Net profit / return received Net profit / return paid Income tax paid Net cash generated from operating activities CASH FLOW FROM OPERATING ACTIVITIES Nine months period endedSeptember 30, 2024(Restated) Nine months period endedSeptember 30, 2025 Syed Imran Ali Shah Chief Financial OfficerDirector Mohammad Abdul Aleem Director Bader H.A.M.A. AlRabiah President & Chief Executive Irfan Siddiqui Chairman Riyadh S. A. A. Edrees The annexed notes 1 to 3 form an integral part of these consolidated condensed interim financial statements.
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56 FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2025 These condensed interim consolidated financial statements include the unaudited financial statements of Meezan Bank Limited (MBL) (the holding company), Al-Meezan Investment Management Limited (subsidiary) and Meezan Exchange Company (Private) Limited (subsidiary) collectively referred as the ‘Group’ and associates namely, Al-Meezan Mutual Fund, Meezan Islamic Fund, Meezan Islamic Income Fund, Meezan Sovereign Fund, KSE Meezan Index Fund, Meezan Balanced Fund, Meezan Islamic Income Fund, Meezan Fixed Term Fund , Meezan Gold Fund, Meezan Cash Fund, Meezan Rozana Amdani Fund, Meezan Pakistan Exchange Traded Fund, Meezan Tahaffuz Pension Fund-Equity, Meezan Tahaffuz Pension Fund-Gold Sub Fund, Meezan Energy Fund and Meezan GOKP Pension Fund. These condensed interim consolidated financial statements has been prepared in accordance with the requirements of International Accounting Standard (IAS) 34 ‘Interim Financial Reporting’ . These condensed interim consolidated financial statements comprise of the statement of financial position as at September 30, 2025 and the profit and loss account, statement of comprehensive income, statement of changes in equity and the cash flow statement for the period ended September 30, 2025. The accounting policies and the methods of computation adopted in the preparation of these condensed interim consolidated financial statements are the same as those applied in the preparation of the Group for the year ended December 31, 2024. These consolidated condensed interim financial statements were authorized for issue on October 24, 2025 by the Board of Directors of the Holding company. NOTES TO AND FORMING PART OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 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. 1.5 Functional and presentation currency Figures have been rounded off to the nearest thousand rupees unless otherwise stated. 1.6 Rounding off These condensed interim consolidated financial statements have been prepared under the historical cost convention, except for certain non banking assets acquired in satisfaction of claims which are stated at revalued amounts, investment classified at fair value through profit or loss and fair value through other comprehensive income, commitments in respect of certain foreign exchange contracts which are measured at fair value, staff retirement benefits and compensated absences which are carried at present value. 1.4 BASIS OF MEASUREMENT Syed Imran Ali Shah Chief Financial OfficerDirector Mohammad Abdul Aleem Director Bader H.A.M.A. AlRabiah President & Chief Executive Irfan Siddiqui Chairman Riyadh S. A. A. Edrees Syed Imran Ali Shah Chief Financial OfficerDirector Mohammad Abdul Aleem President & Chief Executive Irfan Siddiqui Chairman Riyadh S. A. A. Edrees