Bank Alfalah Limited (hereinafter referred to as “BAFL” or “the Bank”) was incorporated as a public limited company in 1992 and is listed on the Pakistan Stock Exchange (PSX). Bank Alfalah Limited has experienced remarkable growth since its establishment, becoming a prominent private commercial bank in Pakistan. It holds a significant position in credit card issuance and acquisition, consumer banking, SME, digital banking, and remittances, and is recognized as one of the major players in Islamic Banking in the country. At 9MCY25, the Bank operated through 1,175 branches (Dec’24: 1,141 branches) and 10 sub-branches (Dec’24: 12 sub-branches). Out of the total branches, 715 were conventional (Dec’24: 707), 449 were Islamic (Dec’24: 423), 10 were overseas (Dec’24: 10), and 1 was an offshore banking unit (same as Dec'24). Bank provides financial solutions to consumers, corporations, institutions, and governments through a broad spectrum of products and services, including corporate and investment banking, consumer banking and credit, commercial, SME, agri-finance, Islamic, and asset financing.

BAFL is majority-owned by the Abu Dhabi Group (The Group – sponsors of the Bank based in Abu Dhabi, UAE), with a stake of 56.06%. Other stakeholders include Mutual Funds, NBFCs, FIs, DFIs, individuals (43.82%), and executives (0.12%). The Group has retained the majority shareholding, for the last many years and is expected to remain the same in the foreseeable future. Bank Alfalah Limited, as a holding company, maintains strategic investments in subsidiaries and associates across diverse sectors, including asset management, insurance, foreign exchange, and energy. Alfalah Currency Exchange is the subsidiary of the Bank, while associated companies comprise Alfalah Asset Management, Alfalah Insurance, and Sapphire Wind Power. The Bank also operates internationally in Afghanistan, Bangladesh, Bahrain, and UAE. The Group comprises prominent members of the UAE’s ruling family and leading businessmen of the UAE. Its investment portfolio spans multiple countries, including Pakistan, Bangladesh, the Middle East, Europe, and the United States. Sponsors, having close ties with the ruling family of UAE, possess strong financial ability to support BAFL in case of need.

BAFL's Board consists of nine members, including the President & CEO and eight Non-Executive Directors. Out of the eight Non-Executive Directors, four represent the Abu Dhabi Group, while the remaining three members serve as Independent Directors, and one female Director. The Chairman of the Board of Directors, His Highness Sheikh Nahayan Mabarak Al Nahayan is a prominent member of the ruling family of Abu Dhabi, United Arab Emirates. Currently, His Highness is UAE Cabinet Member and Minister of Tolerance and Coexistence. Mr. Abdulla Nasser Hawaileel Al Mansoori is a prominent businessman of Abu Dhabi, UAE. Presently, he is the Chairman of the Board of Al Nasser Holdings and Group Companies which have diversified activities ranging from Oilfield Services, Retailing, Investments, Manufacturing Industries, Real Estate and Food & Beverage. He has served on the Board since 1997. Mr. Abdulla Khalil Al Mutawa is serving in the position of H.E. Sheikh Suroor Bin Mohammad Al Nahyan Private Office Advisor. He has been associated with the Bank for over 27 years. Mr. Khalid Mana Saeed Al Otaiba is the office Manager of His Excellency Dr. Mana Saeed Al Otaiba (Personal Advisor to His Highness, the President of UAE). He has served on the Board since 2003. Dr. Ayesha Khan is an expert in the field of corporate strategy and institutional growth in emerging markets. She is currently the CEO and Regional Managing Director at Acumen. Dr. Gyorgy Tamas Ladics, CEO of Silverlake Symmetri, has over 30 years of international banking and technology leadership. Mr. Khalid Qurashi, a retired banker, has held various international roles at Citibank and currently serves on the Board of HBL UK. Mr. Efstratios Georgios Arapoglou , a corporate advisor and Chairman of Bank of Cyprus, joined the Board in 2024 with broad experience in finance and shipping. To ensure effective and independent oversight of the Bank’s overall operations, the Bank has constituted seven committees namely, i) Audit Committee, ii) Human Resource, Remuneration & Nomination Committee, iii) Risk Management Committee, iv) IT Committee, v) Strategy and Finance Committee, vi) Real Estate Committee, and vii) Crisis Management Committee. The external auditors of the Bank, A.F Ferguson, and Co., Chartered Accountants, have issued an unqualified audit opinion pertaining to financial statements for CY24.

BAFL has a lean organizational structure that clearly defines responsibilities, authority, and reporting lines with proper monitoring and compliance mechanism. Bank Alfalah’s senior management team brings extensive local and international banking experience. CEO Mr. Atif Aslam Bajwa, has over 40 years of executive leadership experience with a career starting at Citibank in 1982. CFO Ms. Anjum Hai, with over 28 years of experience, is a Fellow Member of ICAP and ACCA. CRO Mr. Faisal Rabbani , has 29 years of experience and holds an MBA from IBA, Karachi. Bank Alfalah has three main management committees for the purpose of strategic planning and decision-making under the Chairmanship of the CEO; (a) Central Management Committee; (b) Central Credit Committee; and (c) Digital Council. The Bank uses Temenos (T-24) as its core banking software across all branches and head office operations. The Bank’s risk management framework has a well-defined organisational structure for effective management of credit risk, market risk, liquidity risk, operational risk, information security risk, trade pricing, environment and social risk. The Board Risk Management Committee is appointed and authorized by the Board of Directors to assist in the design, regular evaluation, and timely updating of the risk management framework of the Bank, and the Board Information Technology Committee plays a supervisory and advisory role for IT, Information Security and Digital Banking functions within the Bank.

BAFL is ranked among the large Banks in the country. As of Sep`25, BAFL recorded the growth in total deposits, clocking in at 1.4% YoY, which led to a slight decrease in its industry-wide system share to 6.0% (Dec24: 7.0%). Among the large Banks,  BAFL holds 8.2% market share. During 9MCY25, BAFL’s net markup income stood at PKR 101.5bln (9MCY24: PKR 97.1bln), reflecting an improvement despite a decline in markup earned to PKR 270.8bln (9MCY24: PKR 391.3bln), primarily due to improvement in current account averages during the period. Consequently, the Bank’s spread slightly increased to 4.8% (CY24: 4.5%). Similarly, the cost of funds decreased to 7.4% (CY24: 12.1%). The Bank’s asset yield stood at 12.2%(9MCY24: 18.0%). Moving forward, BAFL is well-positioned for sustainable growth and building long-term shareholder value. The Bank will continue to invest in Digital Banking, technology infrastructure, human capital, and in strengthening the compliance and controls environment. At the same time, the Bank will continue to focus on building a low-cost deposit base, improving the return on capital on risk assets, optimizing returns from the banking book, and enforcing a strong cost discipline across the Bank. The decline in interest rates and inflation has contributed to restoring market confidence and enhancing financial stability, creating a favourable environment for the banking sector. However, ongoing geopolitical developments, including tariff escalations, continue to pose risks, with potentially significant implications for the global economy, including Pakistan. During 9MCY25, non-markup income increased by 6.0% to stand at PKR 35.2bln (9MCY24: PKR 33.2bln) with a major contribution from gain on securities income clocking in at PKR 10.5bln (9MCY24: PKR 8.5bln), followed by foreign exchange income at PKR 8.9bln (9MCY24: PKR 7.8bln). The non-markup expense increased to PKR 87.5bln (9MCY24: PKR 62.1bln). The net profitability decreased to PKR 21.4bln (9MCY24: PKR 33.6bln).  During 9MCY25, Pakistan's Banking sector's total assets posted growth of ~9.5% YTD whilst investments surged by ~23.4% to PKR ~36.7trln (CY24: PKR ~29.8trln). Net Advances of the sector recorded a decline of ~16.3% to stand at PKR ~13.2trln (CY24: PKR ~15.8trln). Non-performing loans witnessed a decrease of 11.2% YTD to PKR ~948bln (CY24: PKR ~1,068bln). The CAR averaged at 22.1% (CY24: 20.6%). Given the low monetary rate and high cost environment, Banks are likely to show some dilution in profitability by the end of CY25 (Source: SBP Compendium).

At 9MCY25, the gross performing advances of the Bank were reported at PKR 1,033.9bln (Dec24: PKR 1,113.9bln). The NPLs of the Bank increased to PKR 43bln (Dec24: PKR 42.4bln). Consequently, the infection ratio stood at ~4.0% (Dec24: 3.7%). The net advances to deposits ratio (ADR) of the Bank were reported at 47.5% (Dec24: 51.9%). At 9MCY25, the investment portfolio of the Bank has declined by 17.7% to stand at PKR 1,638.2bln (Dec'24: PKR 1991.2bln).  The investments in the government securities portfolio comprised 3.7% T-Bills (Dec’24: 5.3%), 78.0% PIBs (Dec’24: 78.0%), remain the same, and 18.4% in other government securities and investments (Dec’24: 16.8%). During 9MCY25, Government securities constitute 89% of total investments (Dec`24: 90.1%). At 9MCY25, the deposit base of the Bank posted a growth of 1.4% to stand at PKR 2,166.8bln (9MCY24: PKR 2,136.4bln). CA and SA proportions were reported at 43% (9MCY24: 40%) and 30% (9MCY24: 32%), respectively.  The Bank’s liquidity, in terms of Liquid Assets-to-Deposits and borrowing ratio, declined to 52.9% (9MCY24: 62.8%). At 9MCY25, the Bank’s equity base strengthened to PKR 192.1bln (Dec'24: PKR 178.1bln). Subsequently, the CAR stood at 17.94% (Sep'24: 19.04%), comprising Tier I CAR 14.3% (Sep'24: 14.28%), remaining compliant with the minimum requirement by SBP.

The Bank issued an Additional Tier-I Term Finance certificate amounting to PKR 7bln. The instrument is listed, unsecured, perpetual, noncumulative and contingent convertible. The issue contributes towards supporting the Bank’s Capital Adequacy Ratio (CAR) by strengthening additional Tier-I Capital as per guidelines set by SBP. Mark-up is payable semiannually in arrears on outstanding principal amount @6MK+1.5%. The TFCs may be recalled and replaced with similar or better-quality capital, subject to SBP approval, after five years from the issue date on principal redemption date or thereafter, subject to call option condition. As per lock-in clause requirement, neither profit nor principal would be payable (even at maturity), if such payment will result in a shortfall in Bank's minimum capital requirement (MCR), leverage ratio (LR) or CAR or results in an increase in any existing shortfall in MCR, LR or CAR. The TFC is subject to a loss absorbency clause, which upon the occurrence of Non-Viability event, SBP may fully or permanently convert the TFCs into common shares of the Bank.

The TFCs will be subordinated to the payment of principal and profit, to all other indebtedness of the Bank, including deposits.

The instrument is unsecured.