The Bank of Punjab ("BoP" or the "Bank") was established under the BoP Act 1989 (the Act), as a non-scheduled bank, and was subsequently converted into a scheduled bank in 1994.

Initially focused on serving the financial needs of the public sector in Punjab, BoP has since expanded its services across Pakistan. It offers a broad spectrum of conventional and Islamic banking products and has a growing branch network nationwide. The Bank is listed on the Pakistan Stock Exchange (PSX) and has diversified its offerings to include corporate, retail, and investment banking. The Bank has its registered office at BOP Tower, 10-B, Block E-II, Main Boulevard, Gulberg III, Lahore. As of end-Dec25, the Bank operates with a network of 901 branches (end-Dec24: 900 branches), and employs 15,206 employees at end-Dec25 (end-Dec24: 14,656).

The Bank of Punjab offers a comprehensive range of products and services across retail, corporate, SME, agriculture, treasury, digital, and Islamic banking segments. Its retail portfolio includes deposit products, consumer financing, payment solutions, and card-based services, while corporate and SME customers are served through financing, trade, cash management, and advisory offerings. BoP commenced its Islamic banking operations in 2013 under the brand name “Taqwa Islamic Banking,” which has since become an integral component of the Bank’s franchise. At end-Dec25, the Islamic banking network remained unchanged from the previous year, comprising 210 fully functional Islamic Banking Branches and 534 Islamic Banking Windows (end-Dec24: 258), providing a broad range of Shariah-compliant products and services. The Bank maintains a strong presence in agriculture finance and continues to expand customer outreach through its digital banking platform. During CY25, the DigiBOP mobile application reached approximately 822k registered users (+33% YoY) and processed around 29mln transactions amounting to PKR 800bln, reflecting growth of 53% in transaction volume and 62% in transaction value. The digital ecosystem was further supported by a debit card base of approximately 1.6mln cards (+45% YoY), facilitating 44mln transactions worth PKR 608bln, representing growth of 30% and 32%, respectively. SMS Banking subscriptions increased to 1.6mln (+33% YoY), while WhatsApp Banking users rose to approximately 599k (+304% YoY). RAAST registrations reached 42k, up 28% YoY, indicating continued adoption of digital payment channels. The Bank also strengthened its position in priority sectors through initiatives such as the Kissan Card, Karobar Card, and Livestock Card, serving approximately 797k farmers, 103k Karobar Card borrowers, and 41k Livestock Card borrowers as at end-Dec25. Going forward, management remains focused on leveraging technology to enhance customer acquisition, improve service delivery, strengthen operational efficiency, and diversify revenue streams. The Bank’s efforts were recognized through several industry awards during CY25 across SME Banking, Agriculture Inclusion, Women Inclusion, Digital Inclusion, ESG, and Transaction Banking categories.

The Government of Punjab (GoPb) holds a controlling stake of 57.47% in the Bank of Punjab. The rest of the shareholding is by individuals at 25.97% and institutions at 16.56%.

The ownership structure of the Bank is seen as stable, as no ownership changes are expected in the future. The majority stake will rest with the Government of Punjab.

Sponsor's business acumen is considered good, as BoP has been achieving milestones by successfully making the right business decisions. Over the last few years, it has sustained being a profitable institution.

BoP, being one of the flagship entities under the umbrella of the Government of Punjab, willingness to support the Bank in case the need arises, which is considered high; also supplemented by access to the capital markets.

The Bank is governed by an eight-member Board of Directors (Board) comprising three non-executive directors, four independent directors, and one executive director, the Chief Executive Officer (CEO). Four members of the Board represent the Government of Punjab (GoPb). The Chairman of the Board, previously appointed by the GoPb, was de-notified in January 2024. Since then, the Chairman has been elected by the Board of Directors at the commencement of each Board meeting. The current Board composition represents a significant improvement over the previous structure, which comprised only four members, all representing the GoPb, and did not comply with the requirements of the Securities and Exchange Commission of Pakistan (SECP) Code of Corporate Governance. The existing Board now meets the minimum requirements relating to board size and the presence of independent directors as prescribed under the SECP Code. However, the absence of a female director remains a gap in achieving full compliance with the Code.

Mr. Syed Ghazanfar Abbas Jilani – Non-Executive Director is a seasoned civil servant with over 30 years of experience in public finance and economic affairs, bringing strong oversight capabilities to the Board. His expertise spans government administration, financial management, and international development institutions. Mr. Mujahid Sherdil – Non-Executive Director is a senior public sector professional with over 20 years of experience in key leadership roles, contributing significantly to strategic decision-making. His background includes public administration, infrastructure development, and financial management. Dr. Muhammad Amjad Saqib – Non-Executive Director is a distinguished social entrepreneur and former civil servant with over 25 years of diversified experience in poverty alleviation and inclusive finance initiatives. His expertise lies in microfinance, social development, and public sector governance. Mr. Ali Farhan – Independent Director is a seasoned professional with over 30 years of experience across financial and real estate domains, offering diversified business insight. His core expertise includes investment banking, real estate, and financial advisory. Mr. Mohammad Mudassir Amray – Independent Director is an experienced international banker with over 25 years of leadership experience across multiple markets, contributing a global perspective to the Board. His expertise covers commercial banking, risk management, and strategic leadership. Mr. Muhammad Naeem Khan – Independent Director is a senior banking professional with over 35 years of diversified experience across domestic and international markets. His background includes commercial banking, investment banking, and international financial markets. Mr. Asif Reza Sana – Independent Director is a seasoned banker and entrepreneur with over 30 years of experience in restructuring and financial services development. His experience spans financial services, private equity, and corporate governance.

The Board exercises close monitoring of the management’s policies and the Bank’s operations via six sub-committees, namely i) Board Audit Committee, ii) Human Resource, Compensation Performance Evaluation and Nomination Committee (HRCPE&NC), iii) Risk Management, Compliance and NPL Review Committee (RMC&NRC), iv) Strategy, Islamic and Priority Sectors Financing Committee (SI&PSFC), v) Information Technology and Communications Committee (ITCC), and (vi) Environmental, Social & Governance Committee (ES&GC). Meetings for all six committees are held quarterly. The Board members’ attendance and participation are considered good and effective.

The Audit Committee the internal audit function includes a review of the annual and interim financial statements of the Bank, before their approval by the Board, focusing on major judgmental areas, significant adjustments resulting from the audit, going concern assumption of any changes in accounting policies and practices, compliance with applicable accounting standards, compliance with regulations and other statutory and regulatory requirements. M/s. A.F. Ferguson & Co, Chartered Accountants, classified in category 'A' by SBP and having a satisfactory QCR rating, are the external auditors for BOP. They expressed an unqualified opinion on the financial statement for the year ended Dec'25.

The Bank operates with a streamlined organizational framework, where experienced senior management leads each functional area and/or unit. This structure incorporates essential segregation of duties, ensuring a robust control environment. The Bank's operations are further specialized across various groups, each dedicated to distinct banking functions and support services. i) Consumer Banking Group, ii) Corporate & Investment Banking Group, iii) Risk Management Group, iv) Finance Group, v) Islamic Banking Group, vi) Human Resource Group, vii) Staff & Strategy Group, viii) Digital Banking Group, ix) Treasury & Capital Markets Group, x) Compliance & Control Group, xi) Information Technology Group, xii) Operations Group, and xiii) Legal Group.

Mr. Zafar Masud – President & CEO is a development-focused banker and entrepreneur with around 30 years of experience across banking, public policy, and corporate governance. His expertise spans financial services, infrastructure finance, and digital transformation. His leadership has been instrumental in driving growth, innovation, and financial inclusion within the Bank. Mr. Nadeem Amir – Chief Financial Officer is a seasoned finance professional with over 30 years of experience in financial management and reporting. His expertise includes finance, economic analysis, and fiscal policy frameworks. His exposure to investor relations and financial forums supports effective financial oversight. Mr. Arslan Muhammad Iqbal – Chief Risk Officer is a banking professional with over 14 years of experience in risk management and credit functions. His expertise covers corporate credit, project finance, and risk modeling. His experience supports the Bank’s risk governance and credit evaluation framework. Mr. Ahmad Mansoor – Chief Compliance Officer is a seasoned professional with over 28 years of diversified experience in the financial sector. His expertise spans compliance, regulatory frameworks, and risk review functions. His experience enhances the Bank’s compliance culture and internal control environment. Mr. Asif Riaz – Group Chief Consumer Banking holds an MPA degree and brings over 30 years of professional experience, including more than 24 years in the banking sector and over six years with the Bank. He is responsible for leading the Bank's consumer banking franchise, with a focus on retail business growth, customer acquisition, and strengthening the Bank's consumer banking portfolio.

The Bank has various committees in place at the management level to oversee its day-to-day operational matters and make decisions to implement the strategy outlined for it by the Board. These include the: i) MANCOM Committee, ii) Asset and Liability Committee (ALCO), iii) Compliance Management Committee (CMC), iv) IT Steering Committee (ITC), v) Property & Premises Committee (P&PC), vi) Non-Banking Asset Management Committee (NBA), vii) Marketing & Communication Committee (MCC), viii) Fraud Risk Management Committee (FRMC), ix) Operational Risk Management Committee (ORMC), x) Credit Risk Management Committee (CRMC), xi) Service Quality Committee (SQC), xii) Disciplinary Harassment & Grievance Committee (DHAGC), xiii) Environmental & Social Risk Management Committee (ESRM), xiv) Islamic Banking Transformation Steering Committee (IBTSC), xv) Steering Committee International Banking (SCIB), and xvi) Charity Committee (CHAR). The Management Committees consist of the CEO and fourteen department heads. The committee, responsible for overseeing the operational matters of the Bank, including human resources, different lines of business, compliance, and administration, meets fortnightly to review these areas.

A comprehensive IT security policy has been put in place along with risk mitigation protocols. The Bank has been using the internationally renowned Oracle-based Core Banking System (CBS) 'Flexcube,' with all branches migrated to the new system. Beyond core banking operations, the Bank's risk management function currently relies on an integrated suite of IT systems — including Flexcube, a Loan Origination System (LOS), and a Risk Rating System — to generate various risk-related reports and ensure effective portfolio monitoring. The Bank continues to invest in the upgradation of its IT-based infrastructure to strengthen its reporting mechanisms and enable efficient, real-time monitoring across its diverse portfolios. A dedicated Information Security division has been established within the Risk Management Group (RMG), reflecting the Bank's commitment to safeguarding data integrity, system resilience, and regulatory compliance across all digital operations.

The Bank of Punjab’s Risk Management Group (RMG), headed by the CRO, anchors the Bank’s risk governance by overseeing key risk areas through a structured reporting framework. It employs advanced tools such as stress testing and early warning systems to monitor risk exposures and support timely decision-making. Standardized processes and disciplined policy compliance strengthen portfolio quality, while regular reporting to management and the Board ensures effective oversight and alignment with strategic and regulatory requirements. The Bank uses an internal Risk Rating Module to enhance objectivity in its credit appraisal process through the Obligor Risk Rating (ORR) system. The Bank has assigned 88% of its obligors under "Good and above" credit risk rating, while another 9.3% fall under the "Marginal and above" category. Approximately 1.8% of obligors are rated under "Overdue but not Classified and above," and 0.9% are categorized under "Loss and above.

During CY25, Pakistan’s banking sector’s total assets grew by approximately 17.8% YoY, while investments surged by ~31.1% to PKR ~39.1trln (CY24: PKR ~29.8trln). Net advances of the sector declined by ~6% to PKR ~14.9trln (CY24: PKR ~15.8trln). Non-Performing Loans (NPLs) decreased by 9.7% YoY to PKR ~964bln (CY24: PKR ~1,068bln). The Capital Adequacy Ratio (CAR) averaged 20.8% (CY24: 20.6%), slightly below historical averages due to higher risk-weighted assets and a shift toward low-yield government securities, yet capitalization remains adequate to absorb potential shocks. While the Advances to Deposit Ratio (ADR) was reported at 37.5% (CY24: 49.7%), which appears higher relative to declining advances, because deposit growth outpaced lending activity. This reflects a cautious lending stance by banks in a challenging macroeconomic environment, where risk-averse behavior and liquidity accumulation resulted in slower credit deployment, pushing the ADR downwards. In a lower policy rate environment, coupled with high operating costs and reduced lending, the sector faced margin pressure, leading to moderated profitability by end-CY25, despite robust capitalization and improving asset quality. (Source: SBP Compendium). Amid this operating environment, the Bank of Punjab sustained growth momentum during CY25, with its lending portfolio expanding by 13.4%. The Bank reported an Advance-to-Deposit Ratio (ADR) of 42.96% (CY24: 45.45%), reflecting a decline primarily attributable to a stronger growth in deposits, which increased by 20% during the year. While this deposit mobilization supports funding stability and liquidity, the expansion in risk-weighted assets exerted pressure on the Bank’s capital position, leading to a moderation in the Capital Adequacy Ratio (CAR) to 14.22% (CY24: 16.54%).

BoP, a medium-sized bank demonstrating sustainable growth, recorded a 20% increase in its total deposit base to PKR 2,051.5bln at end-CY25 (CY24: PKR 1,710.3bln). Customer deposits rose by 17.9% to PKR 1,996.4bln (CY24: PKR 1,693.4bln), while deposits from financial institutions increased sharply by 227% to PKR 55.1bln (CY24: PKR 16.8bln). The Bank’s market share on the basis of customer deposits stood at 5.6% (CY24: 5.7%), indicating modest moderation despite overall growth in the banking sector.

In CY25, BoP’s total markup income declined by 22.5% to PKR 266.5bln (CY24: PKR 343.8bln), reflecting compression in asset yields across the Board. However, on a spread basis, this development was net-positive as liability repricing was more aggressive and faster than asset repricing. Advances-related markup, at PKR 99.2bln (CY24: PKR 117.5bln), fell by 19% despite 12% growth in gross advances, indicating yield compression driven by both the lower interest rate environment and a moderated ADR as the Bank pursued a calibrated credit growth strategy. Investment-related markup also declined by 24.4% and was reported at PKR 167.2bln (CY24: PKR 221.2bln), represented 62.7% of total markup income, reflecting BoP’s predominantly investment-heavy asset mix (52% of total assets). Within this, PIBs dominated the portfolio, and yields declined in line with the SBP rate cuts. On the liability side, markup expenses decreased significantly by 38% to PKR 185.3bln (CY24: PKR 299.6bln), supported by low-cost deposit mobilization. This asymmetric repricing between faster-liability adjustments and slower asset repricing drove a historic Net Interest Margin (NIM) expansion, with NIM rising by 83.7% to PKR 81.1bln (CY24: PKR 44.2bln). Asset yields declined to 11.2% (CY24: 17.3%), while the cost of funds decreased to 7.6% (CY24: 14.4%), resulting in an improved spread of 3.6% (CY24: 2.9%). The expansion in spread and NIM was primarily attributable to rapid repricing of BoP’s deposit base, effective current deposit mobilization, and controlled funding costs, partially offsetting the decline in overall markup income.

During CY25, the Bank’s total income crossed the PKR 100bln mark for the first time, reaching PKR 101.0bln (CY24: PKR 70.8bln), reflecting a strengthening earnings trajectory. Within this, non-markup income declined by 25.5% YoY to PKR 19.9bln (CY24: PKR 26.7bln). However, fee and commission income increased by 19.4% to PKR 13.6bln (CY24: PKR 11.4bln), primarily comprising card-related fees of PKR 5.3bln (CY24: PKR 4.3bln), commission on trade of PKR 1.6bln (CY24: PKR 1.7bln), and SMS banking income of PKR 1.5bln (CY24: PKR 1.0bln). Foreign exchange income increased significantly by 159.5% to PKR 2.2bln (CY24: PKR 0.9bln), while gains on securities declined sharply by 65.8% to PKR 4.0bln (CY24: PKR 11.7bln). Dividend income stood at PKR 335.4mln (CY24: PKR 353.8mln). The Bank also reported a net loss of PKR 1.1bln on derecognition of financial assets measured at amortized cost, compared to a gain of PKR 1.1bln in CY24, while other income declined to PKR 772.3mln (CY24: PKR 1,193.3mln). On the expense side, non-markup expenses increased by 19.5% YoY to PKR 60.2bln (CY24: PKR 50.4bln), primarily driven by higher personnel and branch-related expenses, along with increased technology and card-related operating costs, reflecting the Bank’s continued digital transformation and expansion of its card business. Consequently, Profit Before Credit Loss Allowance nearly doubled to PKR 40.7bln (CY24: PKR 20.5bln), supported by strong operating performance and positive operating leverage, as reflected in the improved cost-to-income ratio of 59.6% (CY24: 71.1%). Total provisioning expenses were reported at PKR 4.9bln, compared to a reversal of PKR 4.1bln in the previous year, primarily reflecting adjustments related to IFRS 9 adoption. Accordingly, the Bank reported its highest-ever Profit Before Tax (PBT) of PKR 35.8bln (CY24: PKR 24.6bln), registering a YoY growth of 46%. Net taxation increased by 77.5% to PKR 19.9bln (CY24: PKR 11.2bln). Consequently, Profit After Tax (PAT) increased by 19.2% to PKR 15.9bln (CY24: PKR 13.3bln). However, growth in net profitability remained relatively subdued compared to PBT growth due to the higher effective tax rate of 55.5%, primarily driven by the imposition of super tax. The Bank has demonstrated a sustained improvement in its deposit mix over recent years, gradually transitioning from a funding base weighted toward higher-cost deposits to one anchored in low-cost, granular, and sticky balances. This structural shift has reduced the Bank’s cost of funds and alleviated a long-standing constraint on profitability. As the improvement reflects a fundamental change in the composition of the deposit base rather than a temporary repricing benefit, it is considered sustainable. Consequently, the Bank has largely avoided the sector-wide trend of margin compression, instead reporting expanding net interest margins and continued growth in core profitability.

The management envisages growth in the deposit base while bringing greater granularity to the customer base through an increased share of private-sector deposits, thereby optimizing the cost of funding. Growth in advances also remains a key strategic focus, with emphasis on higher-yielding assets and a sustainable risk profile. The implementation of modern technological solutions is expected to strengthen the control environment and enhance operational efficiency. The Bank continues to play an increasingly indispensable role in the country's economic and development programs, particularly those of the Government of Punjab. Going forward, the management has devised a strategy to further strengthen the Bank's positioning in the trade business while expanding its footprint across the broader financial services landscape of the country.

At end-Dec’25, BoP demonstrated a strong performance, with its financing portfolio increasing by 13.4% to PKR 881.4bln (end-Dec’24: PKR 777.4bln), reflecting the Bank’s continued focus on expanding lending activities. However, deposit growth outpaced advances growth, resulting in a compression in the Advances-to-Deposit Ratio (ADR), which declined to 42.9% (end-Dec’24: 45.5%). The ADR has exhibited a declining trend over the past three years, reflecting BOP’s chronic under-deployment of funds, with an increasing reliance on government securities as a ‘safe haven’ in place of active credit underwriting. The Top 20 Advances to Total Advances concentration stood at 15.9% (end-Dec’24: 16.9%), largely comprising exposures to financially sound corporate borrowers. Sector-wise, the Agriculture and Textile sectors remained the largest contributors to the advances portfolio. Agriculture advances increased significantly by 56% to PKR 132bln (end-Dec’24: PKR 84.4bln), primarily driven by digital initiatives such as Kissan Card and Livestock Card schemes, while Textile advances increased by 6% to PKR 135bln (end-Dec’24: PKR 126.8bln), constituting 14.6% of the total advances portfolio and remaining the largest sectoral exposure. On a segment basis, advances to the private sector increased to PKR 803bln (end-Dec’24: PKR 654.9bln), whereas exposure to the government/public segment declined to PKR 122.9bln (end-Dec’24: PKR 172.6bln), bringing gross advances to PKR 926bln (end-Dec’24: PKR 827.4bln). On the asset quality front, Net Non-Performing Loans (NPLs) increased to PKR 9.2bln (end-Dec’24: PKR 8.8bln). The Top 20 NPLs to Total NPLs concentration stood at 56.3% (end-Dec’24: 50.3%). Sector-wise, with the Textile and Trading & commerce sectors contributing the largest NPLs at PKR 14.9bln (end-Dec’24: PKR 21.1bln) and PKR 4.9bln (end-Dec’24: PKR 5bln), respectively. While the infection ratio improved to 4.8% (end-Dec’24: 6.5%), indicating relatively stable asset quality despite a slight increase in NPLs. Overall, BoP’s financial profile remains supported by a robust deposit base and a growing, diversified advances portfolio across key sectors and segments, while relatively lower advances deployment continues to weigh on key efficiency indicators.

At end-Dec’25, BoP’s investment portfolio increased by 17.3% to PKR 1,549.5bln (end-Dec’24: PKR 1,320.9bln). Government securities continued to dominate, constituting 99% of total investments (end-Dec’24: 98.3%). Within this, Pakistan Investment Bonds (PIBs) rose by 12.2% to PKR 1,050.8bln (CY24: PKR 936.3bln), while Market Treasury Bills (T-Bills) increased by 14.6% to PKR 360.4bln (CY24: PKR 314.6bln). Ijarah Sukuk recorded a sharp increase of 167.7% to PKR 118.9bln (CY24: PKR 44.4bln). The growth in long-term PIBs and short-term T-Bills reflects the Bank’s dual approach to optimizing returns while maintaining liquidity. The persistent concentration in government-backed instruments highlights BoP’s conservative and stability-focused investment strategy, balancing yield enhancement with capital preservation amid a changing interest rate environment. In PIBs, around 38.7% are fixed and 61.3% are floating. The investment portfolio also includes strategic holdings in subsidiaries and associates. Total investments in associates comprise a PKR 285mln commitment in Punjab Life Insurance Company Limited. In subsidiaries, the Bank maintains full ownership of BOP Capital Securities (Private) Limited and BOP Exchange (Private) Limited. Investment in BOP Exchange (Private) Limited stood at PKR 1.5bln, while investment in BOP Capital Securities (Private) Limited was PKR 210.5bln. Overall, BoP continues to prioritize stability, low-risk investments, and strategic diversification across government securities, equity instruments, subsidiaries, and associates, reflecting a cautious yet return-focused investment approach. At end-Mar'26, the investment portfolio moderated to PKR 1,420.5bln as rising yields triggered a mark-to-market revaluation loss on FVOCI securities, swinging the gross FVOCI surplus from PKR 8.8bln to a deficit of PKR -7.8bln and compressing the net surplus on revaluation of assets on the balance sheet to PKR 2.7bln from PKR 10.7bln. The full PKR ~7.6bln impact (net of tax) was absorbed through OCI directly in equity, leaving reported profitability unaffected, demonstrating the Bank's resilience in shielding reported profitability from interest rate-driven mark-to-market movements.

At end-Dec’25, the Bank's top 20 deposit concentration as a percentage of total deposits remained unchanged at 26.3%, consistent with the previous year. In terms of deposit composition, individual deposits increased to 18% of total deposits (CY24: 13%), reflecting improved retail penetration. Government deposits remained the largest funding source at 43.5% (CY24: 42%), representing policy-driven funds from the Government of Punjab. This concentration underscores a structural funding risk, as changes in government policy, fiscal conditions, or political priorities could result in significant deposit outflows. Private sector deposits declined to 23.6% (CY24: 29.1%), while public sector entity deposits accounted for 12.2% (CY24: 15%). The Bank's liquidity ratio declined to 51.4% at end-Dec’25 (end-Dec’24: 59.3%). Despite this moderation, the Bank continues to maintain a sound liquidity profile through active deposit management, supporting financial resilience and operational flexibility. The deposit mix reflected a strategic shift toward current accounts, with Current Account (CA) deposits increasing to 24% (end-Dec’24: 21%), while Savings Account (SA) deposits moderated to 36% (end-Dec’24: 41%), resulting in a CASA ratio of 59% (end-Dec’24: 62%). In absolute terms, CASA balances increased by PKR 163bln, supported by a 34.3% growth in current deposits. The decline in the CASA ratio primarily reflected the faster growth of term deposits, which increased by 27.2% to PKR 831.1bln (CY24: PKR 653.2bln), as customers locked in higher profit rates during the prevailing high interest rate environment. Going forward, as these deposits mature and reprice at lower rates, the Bank is expected to benefit from a reduced cost of deposits, providing further support to net interest margins.

As of end-Dec'25, the Bank's CAR stood at 14.22% (CY24: 17.93%), with a Tier I CAR of 11.11% (CY24: 14.26%), remaining comfortably above the minimum thresholds prescribed by the SBP. The Bank has devised an internal policy to improve its CAR by maintaining a target capital adequacy level through internally generated profitability, while dividend payouts are managed in a manner that supports the achievement of the target CAR. The moderation in CAR primarily reflects higher utilization of capital towards advances, driven by a 39% increase in Risk-Weighted Assets (RWA) to PKR 940.97bln (CY24: PKR 676.2bln), which outpaced the 10% growth in total eligible regulatory capital to PKR 133.8bln (CY24: PKR 121.2bln). The Bank's equity base strengthened to PKR 104.1bln (end-Dec'24: PKR 92.5bln), underscoring its commitment to maintaining capital buffers well above regulatory requirements to support risk absorption and future business growth. To further strengthen its capital base, the Bank has issued a series of Term Finance Certificates (TFCs), including: (i) Subordinated Perpetual TFCs – ADT I of PKR 8bln, (ii) Subordinated Perpetual TFCs – ADT I 2nd Issue of PKR 3.95bln, (iii) Privately Placed TFCs – II of PKR 4.3bln, (iv) Privately Placed TFCs – III of PKR 7bln, and (v) Privately Placed TFCs – IV of PKR 7.57bln. With total subordinated debt outstanding of PKR 30.8bln, the Bank is one of the largest issuers of subordinated capital instruments in Pakistan's commercial banking sector. These issuances reflect the Bank's proactive capital planning strategy and enhance its loss-absorbing capacity, supporting sustainable business growth while maintaining adequate regulatory capital.