Allied Bank Limited ("ABL" or the "Bank"), incorporated as a public limited Company, commenced its operations as a Scheduled Commercial Bank in 1942. The Bank is quoted on the Pakistan Stock Exchange.

Allied Bank Limited holds the distinction of being the first Bank established in Pakistan. Originally founded in 1942 in Lahore under the name Australasia Bank, it began operations prior to the country’s independence. Following the nationalization of Banks in 1974, it was merged with three other financial institutions and rebranded as Allied Bank of Pakistan Limited. In August 2004, under the State Bank of Pakistan’s Scheme of Reconstruction, ownership was transferred to a consortium led by the Ibrahim Group. Subsequently, in 2005, the Bank was renamed to Allied Bank Limited under the new management. Since then, the Bank has taken significant growth and is now one of the largest Banks in terms of deposit and market share at end-Dec24. The head office of Bank is located at Tipu Block New Garden Town Lahore.

During CY24 ABL operates with 1,510 branches including 1,348 conventional and 160 Islamic Banking branches & 1 branch in Karachi EPZ in Pakistan and 1 overseas branch. (end-Dec23: 1,483 branches including 127 Islamic Banking branches)

Ibrahim Group (IG), through Ibrahim Holdings (Private) Limited owns 90% of shareholding in ABL. Previously, the same had been owned through Ibrahim Fibers Limited and sponsor family members. The rest of the shareholding is dispersed between individuals and corporates.

Ownership structure of the Bank is seen stable as no ownership changes are expected in near future. Majority stake will rest with the Ibrahim Holdings. The Ibrahim Group continues to demonstrate strong financial and operational stability, supported by a diversified business portfolio spanning key sectors such as polyester, textiles, energy, and financial services. The Group's longstanding presence in the industry, experienced management, and prudent financial practices contribute to its sustained creditworthiness.

The dynamic  Group’s business acumen is backed by the sponsors’ longstanding experience and diversified interests across multiple sectors. In addition to its presence in the financial sector, the Group maintains a strong foothold in the industrial domain, with established operations in the manufacturing of yarn and polyester staple fibre. This sectoral diversification reflects the Group's strategic approach to risk mitigation and sustainable growth over the years.

The net worth of the Ibrahim Group is considered very strong, supported by a substantial asset base and a solid financial foundation. The sponsors have consistently demonstrated both the willingness and capacity to support the business, as evidenced by the provision of interest-free loans during critical periods to sustain operations. A key indicator of the Group’s financial strength is its majority ownership (~91.81%) of Ibrahim Fibres Limited a flagship entity engaged in the manufacturing of polyester staple fiber and yarn which significantly contributes to the Group’s revenue generation and overall financial stability.

The Board of Directors consists of eight members, including the Chief Executive Officer. Of the remaining seven, four are non-executive directors, three of whom represent the sponsoring shareholders and three are independent directors. This composition reflects a balanced governance structure, ensuring adequate representation of Sponsor's interests while promoting independent oversight and strategic guidance in line with corporate governance best practices.

Mr. Mohammad Naeem Mukhtar has been Chairperson of the Board of Directors of the Bank since 2004 and holds an MBA from Cardiff Business School, along with professional qualifications in textiles from the UK. With over 39 years of experience in finance and industrial manufacturing. Sheikh Mukhtar Ahmad, a seasoned entrepreneur with over 63 years of experience, has played a pivotal role in Pakistan’s industrial and financial sectors. He currently serves as Chairperson of multiple Ibrahim Group entities and has been a non Executive Director of Allied Bank Limited since 2005. Mr. Muhammad Waseem Mukhtar has been a non-executive Director on the Bank’s Board since 2004, bringing 27 years of experience in finance, IT, and industry. He holds MBAs from the University of Chicago and a Master degree in Total Quality Management (TQM) from the University of Glamorgan and also plays a key role in the Bank’s strategic and technological initiatives. Mr. Zafar Iqbal, a Fellow of ICAEW and ICAP, brings 39 years of senior management experience in the financial and power sectors. He has served as MD and CEO of Pak Oman Investment Company, transforming it into a leading development financial institution, and has been a non-executive director on the Bank’s Board since August 2015. Ms. Nazrat Bashir, a retired Pakistan Administrative Service officer (BPS-22), has over 36 years of diversified civil service experience. She holds master’s degrees in Economics and Psychology and has been serving as an independent director on the Bank’s Board since August 2018. Mr. Muhammad Kamran Shehzad, an independent director, brings over 49 years of extensive experience in banking, finance, and accounting. He has held senior leadership roles at commercial Banks and the State Bank of Pakistan, and currently chairs the Board’s Audit Committee of the Bank. Mian Ikram Ul Haq has over five decades of experience in Banking and finance, having held key roles in prominent financial institutions both in Pakistan and internationally. He holds an MBA in International Business and Finance, a Law degree, and has served on the boards of Ibrahim Fibres Limited and IDBP. Mr. Aizid Razzaq Gill, is CEO and seasoned banker with more than 26 years of experience in financial management, risk analysis, and portfolio management. He has held key leadership roles at the Bank, including Chief Risk Officer. He holds multiple advanced degrees and has completed executive programs at MIT, Columbia, and London Business School.

The Board is currently assisted by five board committees. 1) Audit Committee of the Board (ACOB); 2) Board Risk Management Committee (BRMC); 3) e-Vision Committee; 4)Strategic Planning & Monitoring Committee (SPMC); 5) Human Resource & Remuneration Committee (HR&RC).

M/s EY Ford Rhodes Chartered Accountants, classified in Category ‘A’ by the State Bank of Pakistan (SBP) and holding a satisfactory Quality Control Review (QCR) rating from the Institute of Chartered Accountants of Pakistan (ICAP), served as the external auditors for the year ended December 31, 2024.

The auditors expressed an unqualified opinion on the financial statements, indicating that the financial reporting presents a true and fair view in accordance with the applicable financial reporting framework, and that no material misstatements were identified during the audit for the year ended December 31, 2024.

ABL is functionally divided into sixteen groups, each governed by a respective chief reporting to the CEO except for the Chief Audit & Risk Review, reporting directly to the Audit Committee of the Board headed by the Muhammad Kamran Shehzad.

Mr. Aizid Razzaq Gill carries more than 26 years of experience in Financial Management, Risk Analysis, and Research and expertise in Portfolio Management of Corporate and Commercial Banking obligors, and has been appointed as CEO since Jan21. He holds multiple advanced degrees and has completed executive programs at MIT, Columbia, and London Business School.The management committees report directly to the Chief Executive Officer and cover key functional areas, including Human Resources, Technology and Digital Transformation, Treasury, Corporate and Investment Banking, General Services and Real Estate, Islamic Banking, Asset Management, Commercial and Retail Banking – North and South, Risk Management, Finance, Compliance, Banking Services, and Corporate Affairs. Mr. Muhammad Atif Mirza, a fellow of the Institute of Chartered Accountants of Pakistan, has over 27 years of experience in audit and finance. He joined Allied Bank Limited in 2016 and currently serves as Chief Financial Officer, overseeing the Finance function. Prior to this, he was a partner at a leading audit firm and has completed leadership and banking training programs. Mr. Moin Khalid serving as Cheif Risk Managment brings over 26 years of diverse experience in risk analysis, finance, strategic planning, and assurance services. Since joining Allied Bank in 2009, he has held key roles including Head of Budgeting & Strategic Planning, Head of Credit Risk Review, and Head of Enterprise Risk. Prior to this, he served in a senior role at PACRA and is a fellow member of the Institute of Chartered Accountants of Pakistan. Mr. Tariq Mehmood Shahid has over 28 years of diversified experience in commercial and central banking, with more than 19 years at Allied Bank. He is Cheif Complaince Officer. He has held key roles in Audit, Compliance, AML, CFT, and investigations. He is a member of the Institute of Cost & Management Accountants Pakistan and holds a Bachelor’s degree in Business/Commerce, along with certifications from Oracle and Microsoft. Mr. Mujahid Ali, Chief Technology and Digital Transformation Officer, brings over 34 years of extensive experience in business process reengineering, IT planning, project management, and systems implementation. Since joining the Bank in 2008 as Chief Information Technology Officer, he has successfully led the transformation of Allied Bank’s conventional banking systems into robust IT platforms. He holds an MBA and previously held key roles with a prominent local group.

The management operates through five committees at the management level including 1) Management Committee (MANCO), 2) Assets & Liabilities Committee (ALCO), 3) Risk Management Committee (RMC), 4) Compliance Committee (CC), 5) Fair Treatment Committee (FTC). MANCO is further assisted by Human Resource Committee (HRC) & IT Steering Committee (ITSC). HRC is further assisted by the Central Administrative Action Committee (CAAC).

Comprehensive MIS reports are generated on a daily, weekly, and monthly basis and are viewed by management on a regular basis.

The Risk Management Framework encompasses key components such as Risk Governance, Risk Architecture, and Risk Organization, which collectively enable the Bank to identify and manage material risks effectively. The Chief Executive Officer and Group Chiefs share accountability for risk oversight through their active participation in various Management Committees, ensuring a coordinated and comprehensive approach to risk management. ABL undertakes a range of information security assessment activities, including vulnerability assessments, penetration testing, technical risk evaluations, and compromise assessments, in compliance with State Bank of Pakistan (SBP) requirements. The Bank has also attained PCI DSS certification, marking a significant security achievement, alongside adherence to the SWIFT Customer Security Program as mandated by SWIFT International. ABL has also obtained cerificate for ISO 27001:2022 Standard in April 2025.

During the year, Pakistan's commercial Banking sector's total assets posted growth of ~15.98% YoY whilst investments surged by ~14.68% to PKR ~29.4trln (endDec23: PKR ~25.6trln). Gross Advances of the sector recorded growth of ~29.11% to stand at PKR ~16.914trln (end-Dec23: PKR ~13.101trln). Non-performing loans witnessed an increase of 7.35%% YoY to PKR ~1,067bln (end-Dec23: ~994bln). The CAR averaged at 20.4% (end-Dec23: 19.4%). Looking ahead, with the expected monetary rate cut, Banks are likely to sustain some dilution in profitability by CY25. Source: SBP Compendium

ABL, as a large-sized Bank, maintains a dynamic position within the banking sector, underpinned by a substantial total deposit base totaling PKR 2trln as of December 2024, reflecting a significant growth from PKR 1.6trln at the end of the previous year. This increase underscores the Bank’s ability to attract and retain a diverse customer base through a wide range of financial products and services, ABL ranks among the leading Banks in the country, demonstrating its competitive strength and prominent role in the industry’s overall landscape.

During CY24, Mark-up income increased by 5.4% year-over-year, amounting to PKR 376.7 bln (CY23: PKR 357.3 bln), driven by higher average earning assets and the effective management of investment. Mark-up expenses increased by approximately 7.17%, reaching PKR 261.5bln in CY24 compared to PKR 244bln in CY23. This rise is primarily attributed to the higher mark-up returns offered on deposits..The advance yield decreased to 15.54% in CY24 from 18.41% in CY23, while the investment rose to 20.9% in CY24, up from 19.1% in CY23. However, the Bank's total income increased to PKR 143bln in CY24, compared to PKR 137.7 bln in CY23.

During CY24, non-mark-up income recorded an increase of 15% YOY to stand at PKR 27.9bln (CY23: PKR 24.4bln) mainly emanating from sizeable increase in Fee and Commission Income stands at PKR14bln (CY23: PKR 10.6bln) and gain on securities stands at PKR 3.4bil (CY23; PKR 0.8bln). The incline in non-mark-up expense by 18.4% stand at CY24 PKR57.9bln (CY23: PKR48.9bln). Hence, net profitability stood at PKR 43.1bln (CY23: PKR 40.7bln) registaring a 6% growth. Furthermore, in CY24, pre-tax profit stood at PKR 87.9bln (CY23: PKR 85.7bln).

Going forward, ABL is positioned for creating long-term sustainable value for its stakeholders. The Bank is also determined to provide customer-centric innovative digital financial solutions to its diverse customer base together with committing to agility, resilience, a high level of ethics, governance, and professionalism. ABL Exchange (Private) Limited, a wholly owned subsidiary of Allied Bank, commenced operations in May 2024 and has established 21 booths nationwide. Incorporated in December 2023 with a paid-up capital of PKR 1bln, it operates in the foreign exchange sector. Meanwhile, ABL Asset Management Company Limited (ABL Funds) remains one of Pakistan’s fastest-growing asset managers, maintaining a top AM1 rating from PACRA and reaching a record PKR 367bln in Assets Under Management as of December 31, 2024.

At end-CY24, ABL's net advances have increased by 35% to stand at PKR 1,051bln (end-CY23: 782bln). The bank's ADR was reported at 52.83% (end CY23:47.37%). The infection ratio slightly decreased and stands at 1.2% (end-CY23: 1.6%). During CY24, the NPLs of the Bank largely remained the same and stands at PKR 12.99bln(CY23: PKR 13bln).

At the end-CY24, the total investment portfolio of the Bank reflected a slight decrease of 1.8% to stand at PKR 1,129.8bln (end-CY23: PKR 1,150.3bln). Government securities constitute 95.87% of total investments (end-CY23: 96.12%). In CY24, government securities primarily comprised PKR 1,083bln, up from PKR 1105.6bln in CY23. However, investments in T-Bills increased significantly to PKR 142bln, compared to PKR 63bln in CY23.

During CY24, ABL’s customer deposits increased to PKR 1,908bln (CY23: PKR 1,616bln). The (Liquid Assets / Deposits and Borrowings) ratio has decrease 41.9%(CY23: 56.6%). The CA stood at 36% (end-CY23: 40%) and SA stood at 47% (end-CY23: 43%). However, ABL achieved CASA ratio of 86% at the end of 2024.

The Bank’s equity base increased to PKR 233.9bln as of end-December 2024, up from PKR 194.2 bln at end-December 2023. The Bank has consistently upheld an admirable Capital Adequacy Ratio (CAR) surpassing regulatory standards, thereby ensuring a stable financial standing. ABL’s Capital Adequacy Ratio (CAR) is well established CY24: 26.7%; CY23: 26.2%), and herein dominant portion is Tier-I CY24: 19.9%; (CY23: 19.8%).