Annual Report 2018

Bank with the Best
Annual Report 2018

From the First Islamic Bank in Pakistan
On January 31, 2002, Meezan Bank was granted the first ever Islamic Commercial
Banking license by the State Bank of Pakistan.
Mr. Irfan Siddiqui, Founding President & CEO, received the license from Dr. Ishrat
Hussain, then Governor of State Bank of Pakistan. Meezan Bank became the pioneer
of Islamic Banking in the country, adding a new chapter to the history of the
financial industry.
To the Best Bank in Pakistan
Alhamdulillah, on November 9, 2018, Meezan Bank was recognized as the Best Bank
in Pakistan by Pakistan Banking Awards - the most prestigious banking recognition in
the country. Our journey from Pakistan’s first Islamic Bank and the smallest bank in
the country to Pakistan’s Best Bank spanned just 16 years. The guidance of Allah ( )
and the trust and confidence of our shareholders and customers have propelled us
on this journey, for which we are grateful.
Our foundations have been built on absolute compliance to Shariah and a focus on
customer service through which we endeavour to deliver the best banking experience
to our customers.
We would like to reflect, through these pages, on our strengths, direction and
purpose. Today, Meezan Bank stands on the threshold of exciting changes to the
way our customers bank with us and we invite you to join us in appreciating our past
and looking forward to an exciting future.
ABOUT PAKISTAN BANKING AWARDS

Pakistan Banking Awards are recognized as the most credible and prestigious
awards in the banking industry of Pakistan. The initiative was launched in 2016 by the
Institute of Bankers Pakistan, in partnership with The DAWN Media Group and
A. F. Ferguson & Co., under the patronage of the State Bank of Pakistan.
A prestigious jury reviews the award submissions and decides on the winner for each
award category. The jury for 2018 comprised
Dr. Ishrat Hussain, Advisor to the Prime Minister on Institutional Reforms & Austerity,
Government of Pakistan, Head of Jury;
Mr. Atif Bajwa, Former President & CEO, Bank Alfalah;
Mr. Atif R. Bukhari, Former President & CEO, UBL Bank;
Dr. Farrukh Iqbal, Dean and Director, IBA;
Mr. Naveed A. Khan, Former President & CEO, Faysal Bank;
Mr. Ehsan Ali Malik, Director & CEO, Pakistan Business Council;
Dr. Zeelaf Munir, Managing Director & CEO, English Biscuit Manufacturers Pvt Ltd.
Contents
Vision 04 Report of the Board Audit Committee 133
Mission 04 Shariah Supervisory Board Report 134
Our Culture 07 Shariah Supervisory Board Report (Urdu) 141
Quaid’s Concept of Islamic Banking 09 Statement of Sources and Uses
Key Figures at a Glance 22 of Charity Fund 142
Six Years’ Horizontal Analysis 24 Review Report to the Members 143
Six Years’ Vertical Analysis 25 Statement of Compliance with
Financial Analysis 26 Listed Companies Code of Corporate
Cashflow Statement 28 Governance Regulations, 2017 144
Summary of Cashflow 29 Statement of Internal Controls 146
Calendar of Major Events 30 Notice of Annual General Meeting 147
Monthly Market Statistics of
Unconsolidated Financial Statements
Meezan Bank’s Share 30
Auditors’ Report to the Members 152
Our Institution Statement of Financial Position 157
Corporate Profile 34 Profit and Loss Account 158
Credit Rating 34 Statement of Comprehensive Income 159
Shareholders 35 Statement of Changes in Equity 160
Awards & Recognition 36 Cash Flow Statement 161
History of Meezan Bank 38 Notes to and forming part of the
Board of Directors 44 Financial Statements 162
Shariah Supervisory Board 47 Statement showing
Corporate Information 49 written-off loans (Annexure 1) 229
Board Committees 50
Organization Structure 52
Management Team 53
Management Committees 54
Corporate Governance 56
SWOT Analysis 59
Strategy and Resource Allocation 60
Risk & Opportunity Report 61
Business Continuity Plan 63
Products & Services 64
The Year in Review

Chairman’s Review 74
Directors’ Report to the Members 76
Directors’ Report to the Members (Urdu) 93
Annexure to the Directors’ Report 94
Statement of Value Added and Distributed 95
Allocation of Income and Expenses to
Remunerative Depositors’ Pool 96
Statement of Inventory 97
Statement of Financing Portfolio Income 97
Business and Operations Review 98
Marketing & Corporate Communication 120
Corporate Social Responsibility 122
Sustainability Report 125
Consolidated Financial Statements Additional Information
Auditors’ Report to the Members 232 Pattern of Shareholding 318
Statement of Financial Position 237 Categories of Shareholders 319
Profit and Loss Account 238 Guidelines and Policies 320
Statement of Comprehensive Income 239 Correspondent Banking Network 326
Statement of Changes in Equity 240 Branch Network 332
Cash Flow Statement 241 Glossary 346
Notes to and forming part of the Dividend Mandate Form 355
Financial Statements 242 Proxy Form 357
Statement showing
written-off loans (Annexure 1) 314
Vision
Establish Islamic banking as banking of
first choice...
Mission
To be a premier Islamic bank, offering a
one-stop shop for innovative value-added
products and services to our customer
within the bounds of Shariah...
Our Culture
Core Values: Shariah compliance, Integrity, Professionalism, Innovation, Service
Excellence, Social Responsibility.
Staff: Committed, motivated and professionally trained employees who
are empathic to their customers’ needs.
Brand Personality: A sober and established, strong, empathic, professional
person; who is an extremely loyal and dependable friend and business
partner, and is committed to offering comprehensive value-based
Shariah-compliant financial solutions.
Relationships: Our relationships are long-term. We recognize and value
our customers’ needs above all and strive to ensure their fulfillment. All
customers are treated with professionalism and in a friendly manner. It
is our endeavour to ensure that they receive efficient and timely service.
The Meezan Bank experience is a unique one.
Quaid’s Concept
of Islamic Banking
“I shall watch with keenness the work of your Research Organization in evolving
banking practices compatible with Islamic ideas of social and economic life. The
economic system of the West has created almost insoluble problems for humanity and
to many of us it appears that only a miracle can save it from disaster that is now facing
the world. It has failed to do justice between man and a man and to eradicate friction
from the international field. On the contrary, it was largely responsible for the two
world wars in the last half century. The Western world, inspite of its advantages of
mechanisation and industrial efficiency is today in a worse mess than ever before in
history. The adoption of Western economic theory and practice will not help us in
achieving our goal of creating a happy and contended people.
We must work our destiny in our own way and present to the world an economic
system based on true Islamic concept of equality of manhood and social justice. We
will thereby be fulfilling our mission as Muslims and giving to humanity the message of
peace which alone can save it and secure the welfare, happiness and prosperity of
mankind.”
Quaid-e-Azam Mohammad Ali Jinnah

Founder of the Islamic Republic of Pakistan
On the occasion of the Opening Ceremony of The State Bank of Pakistan on July 1, 1948.
HIGHLIGHTS - YEAR 2018
PAKISTAN BANKING AWARDS - 2018 LARGEST DEDICATED ISLAMIC BANKING NETWORK
66O BRANCHES
BEST BANK IN MORE THAN
IN PAKISTAN 18O CITIES
2,219,500
CUSTOMERS
*
Years of
Meezan Bank
in Pakistan
2002 - 2018
* TOTAL NUMBER OF CUSTOMERS AS OF DECEMBER 31, 2018
EMPLOYEES AND GLOBALLY RECOGNIZED AS

AMBASSADORS OF ISLAMIC BANKING
+ BEST ISLAMIC BANK
10,000
FOR TREASURY MANAGEMENT
BY ISLAMIC FINANCE NEWS (IFN) MALAYSIA
HIGHEST NUMBER
OF MASTERCARD AND VISA
2IBFT RECEIVING
nd
LARGEST BANK
POS TRANSACTIONS
IN PAKISTAN
AMONG
1LINK
MEMBER BANKS
8.96 785 938
PROFIT AFTER TAX DEPOSITS TOTAL ASSETS
Rs. Rs. Rs.
BILLION BILLION BILLION
DEPOSIT GROWTH
7.67 18
EARNINGS PER SHARE
Rs.
%
GROWTH IN DIGITAL PRESENCE
1
TRADE BUSINESS VOLUME
Rs. LARGEST FOLLOWING ON
TRILLION IN PAKISTAN’S BANKING INDUSTRY
ENTITY CREDIT RATINGS 1st DEDICATED ISLAMIC BANKING YOUTUBE CHANNEL

IN THE COUNTRY
AA+/A1+ BY JCR - VIS 194 %

GROWTH
SINCE 2017
What makes us the Best
Being a Strong Retail Bank
Meezan Bank has always maintained a strong focus on
developing its Retail Banking network and services. We
realize that to achieve our Vision of establishing ‘Islamic
banking as banking of first choice...’ – we must provide
access to Islamic banking to the people of Pakistan
through a large and geographically diverse branch
network and a wide range of Shariah-compliant
products and services. This belief and strategy has
resulted in exemplary growth in our Retail Banking
portfolio and the Bank has grown into a prominent and
successful High Street Bank over the years.
Meezan Bank’s retail offerings range from deposit

products that cater to individual customers, ranging
from teenagers to senior citizens, as well as large
corporates and small businesses. Our Consumer
Finance proposition is the strongest and most diverse in
the industry; we provide financing for household
durables, motorcycles, private and commercial vehicles,
housing and even Hajj and Umrah – all focused on
providing ‘a one-stop shop for innovative value-added
products and services to our customers within the
bounds of Shariah’ - a key element of our Mission
statement.
Our Alternate Distribution Channels include a very

user-friendly Internet banking facility, a top-of-the-line
Mobile Banking App, a range of debit cards offering
discounts and privileges for all categories of customers
and a country-wide network of over 600 ATMs - all
geared to give our customers a superior banking
experience.
Our Unfailing Service

We exist for and because of our customers. The quality
of our service is the first indication of how much we care
for them. With banking becoming increasingly competitive
and all banks offering similar products - the differentiating
factor among organizations that excel and those that
don’t, lies in how much they care for their customers and
this mindset reflects in their service.
Meezan Bank has put systems and a service culture in

place that ensure consistent delivery of a superior
banking experience to its customers across all banking
channels. A Service Board, chaired by the Bank’s
President & CEO, monitors the quality of service being
provided to both internal and external customers across
the network. Evaluation techniques such as Mystery
Shopping and Customer Satisfaction Surveys provide
direct feedback to the Service Board.
Customer service isn’t just about being courteous to

your customers – it is also about providing them a
professional experience of the highest standard. At
Meezan Bank, we strongly believe that our customers
have every right to expect us to be competent,
courteous and thorough and that we should give them
an even better experience, something that we would
expect if we were standing on the other side of the
counter.
Being the Fastest Growing

Bank In Pakistan
With a Vision to ‘Establish Islamic banking as banking of
first choice…’, Meezan Bank started operations in 2002
as the first Islamic Commercial Bank in Pakistan and, at
that time, was the smallest among the 36 banks
operating in the country. Over the last 16 years, our
network has grown from 4 branches to 660 branches in
over 180 cities across the country - a CAGR of 38% p.a.
and our deposits have grown from Rs 5 Billion to Rs 785
Billion - a CAGR of 37% p.a. This is the fastest any bank
has ever grown in the country and Meezan Bank has
achieved this while maintaining strong profitability.
Meezan Bank is now the 7th largest bank in terms of

deposits and the 8th largest in terms of branch network.
We also have one of the highest ‘Deposits per branch’ in
the banking industry. The Bank has grown from strength
to strength and has now been recognized as the Best
Bank in Pakistan. We respect and value the trust of our
customers and stakeholders and are constantly striving
to meet and exceed their expectations.
Shariah Compliance
Meezan Bank maintains the highest levels of Shariah
compliance in all its products, processes, services and
management practices. We are the first Islamic Bank in
Pakistan to establish a dedicated and independent
Shariah Audit Department to ensure Shariah compliance
in our operations as prescribed by our Shariah
Supervisory Board and State Bank of Pakistan.
Meezan Bank has developed its own risk based Shariah

audit rating models, in-depth audit programs, manuals
and checklists – and these have gained global recognition
– to the extent that the prestigious standard setting body
for Islamic Financial Institutions, AAOIFI, has selected
Meezan Bank to establish a regional working group for
revamping and redrafting of its global standard on
Internal Shariah Review and Audit.
At Meezan Bank, Shariah compliance is not a business

need, but part of our belief system. We feel, very
strongly, that our customers trust us to ensure that we
invest their money in a Shariah-compliant manner and
give them halal returns. For us, complete adherence to
Shariah principles in all that we do is simply a way of life.
Embracing Technology
At Meezan Bank, we continuously strive to capitalize on
technology to improve the convenience, security and
quality of banking experience of our customers. The
Bank is continuously working on improving its
technology backbone and platforms - not only to secure
and streamline our banking operations but also to
provide our customers with banking solutions that give
them secure and seamless accessibility to the Bank’s
products and services across all touchpoints.
Meezan Bank has introduced a variety of banking

conveniences that have transformed the user
experience. We have one of the widest range of debit
cards that generate the highest number of transactions
of any bank in Pakistan. By focusing on technology to
make banking easier, we are able to ensure that from our
extremely user-friendly Internet banking service to the
class-leading Mobile Banking App and from instant
biometric verification on ATM machines to the fastest
debit card activation, our customers get the best
technology, from the Best Bank in Pakistan.
Key Figures at a Glance
2018 2017 2016 2015
2018 2014
2017 2013 2016 2015 2014
Profit and Loss Account Profit and Loss Account
Profit on financing, investments and placementsReturn on financing, investments
48,625 36,427 and placements
31,027 48,625
32,893 36,427
28,487 31,027
23,016 32,893 28,487
Profit on deposits and other dues expensedReturn on deposits and other15,684
20,457 dues expensed 13,239 20,457
15,181 15,684
15,539 13,239
12,658 15,181 15,539
Net Spread earned Net Spread earned 28,168 20,743 17,788 28,168
17,712 20,743
12,948 17,788
10,358 17,712 12,948
Fee, commission, forex and other income Fee, commission, forex
6,887and other5,622
income 4,102 6,887
3,617 5,622
3,387 1,971 4,102 3,617 3,387
Dividend income and gain / (loss) on securitiesDividend income and575 gain / (loss)2,002
on securities 1,622 971 575 2,002
1,432 1,539 1,622 971 1,432
Total income Total income 35,630 28,367 23,512 35,630
22,300 28,367
17,767 23,512
13,868 22,300 17,767
Operating and other expenses Operating and other
19,670expenses 16,832 14,787 19,670
13,313 16,832
10,402 14,787
8,128 13,313 10,402
Profit before Provisions Profit before Provisions
15,960 11,535 8,725 15,960
8,987 11,535
7,365 5,7408,725 8,987 7,365
Provisions and write offs - net Provisions and write offs - net1,283
1,168 (218) 1,168
535 1,283
467 93 (218) 535 467
Profit before Taxation Profit before Taxation
14,792 10,252 8,943 14,792
8,452 10,252
6,898 5,6478,943 8,452 6,898
Taxation Taxation 5,830 3,939 3,381 5,830
3,429 3,939
2,328 1,6903,381 3,429 2,328
Profit after Taxation Profit after Taxation
8,962 6,313 5,562 8,962
5,023 6,313
4,570 3,9575,562 5,023 4,570
Statement of Financial Position Statement of Financial Position

Islamic Financing and Related Assets Islamic Financing and Related
512,564 Assets
420,029 311,530 512,564 175,712
207,569 420,029127,623
311,530 207,569 175,712
Total Assets Total Assets 937,915 788,808 662,055 937,915 440,149
535,864 788,808332,095
662,055 535,864 440,149
Total Deposits Total Deposits 785,477 667,181 559,398 785,477 378,744
468,281 667,181288,433
559,398 468,281 378,744
Share Capital Share Capital 11,692 10,629 10,027 11,692 10,027
10,027 10,629 10,027
10,027 10,027 10,027
Sub-ordinated sukuk Sub-ordinated sukuk
14,000 7,000 7,000 14,000
- 7,000
- - 7,000 - -
Total Shareholders Equity Total Shareholders Equity 35,077
40,333 30,474 40,333 23,890
26,347 35,077 18,913
30,474 26,347 23,890
Market Capitalization Market Capitalization
108,022 71,321 67,422 108,022 47,129
45,875 71,321 39,488
67,422 45,875 47,129
Number of Staff Number of Staff 10,069 9,551 9,168 10,069 7,429
8,581 9,551 6,2489,168 8,581 7,429
Number of Branches Number of Branches 660 601 571 551 660 428601 351 571 551 428
Ratios Ratios
Book Value (Rs) Break up Value (Rs)
34.50 32.31 28.07 34.54
25.49 32.31 17.8628.07
23.21 25.49 23.21
Market Value per Share (Rs) Market Value per 92.39
Share (Rs) 67.10 67.24 92.39
45.75 67.10 39.3867.24
47.00 45.75 47.00
Price to Book Value Ratio Price to Book Value2.68
Ratio 2.08 2.40 1.792.67 2.08 2.20 2.40
2.02 1.79 2.02
Cash Dividend (%) Cash Dividend (%)35.00 30.00 30.00 35.00
30.00 30.00 20.0030.00
27.50 30.00 27.50
Stock Dividend (%) Stock Dividend (%)
10.00 - - -10.00 - - - - - -
Right Shares at par (%) Right Shares at par (%)- 6.00 - - - -6.00 - - - -
Price Earning Ratio Price Earning Ratio
12.05 12.07 12.34 12.05
9.13 12.07 9.9712.34
10.31 9.13 10.31
Earning per Share (Rs) Earning per Share 7.67

(Rs) 5.56 5.45 5.017.67 5.56 3.95 5.45
4.56 5.01 4.56
Net Spread to Gross Return (%) Net Spread to Gross Return (%)
57.93 56.94 57.33 57.93
53.85 56.94 45.0057.33
45.45 53.85 45.45
Profit Before Tax to Gross Income (%) Net Profit Before Tax to Gross23.27
26.37 Income (%) 24.33 26.37
22.55 23.27 21.2924.33
20.71 22.55 20.71
Profit After Tax to Gross Income (%) Net Profit After Tax to Gross Income
15.98 14.33 (%) 15.13 15.98
13.40 14.33 14.9215.13
13.72 13.40 13.72
Operating & Other Expenses to Operating & Other Expenses to
Income before provisions (%) Income before provisions
55.21 (%)
59.34 62.89 55.21
59.70 59.34 58.6162.89
58.55 59.70 58.55
Financing / Advances to Deposit Ratio-ADRFinancing

(%) / Advances
65.3to Deposit Ratio-ADR 55.7
63.0 (%) 44.365.3 63.0 44.2 55.7
46.4 44.3 46.4
Investment to Deposit Ratio - IDR (%) Investment to Deposit
15.75Ratio - 17.87
IDR (%) 23.27 15.75
31.24 17.87 52.5623.27
30.12 31.24 30.12
Capital Adequacy Ratio (%) Capital Adequacy14.55
Ratio (%) 12.89 12.91 14.55
10.98 12.89 12.4812.91
11.88 10.98 11.88
Return on Average Assets (%) Return on Average1.04
Assets (%) 0.87 0.93 1.031.04 0.87 1.30 0.93
1.18 1.03 1.18
Return on Average Equity (%) Return on Average Equity (%)19.26
23.77 19.58 23.77
20.00 19.26 22.3119.58
21.35 20.00 21.35
(Comparitive information has been reclassified / rearranged for better presentation)
22 ANNUAL REPORT 2018

Rupees in Million Profit After Taxation
Rupees in Million
2011 2010 2009
2012 20082011 2010 2009 2008 8,962
9,100
8,400
17,809 12,094 9,911

21,592 6,605
17,809 12,094 9,911 6,605 7,700
8,666 6,606 4,970

11,385 3,0888,666 6,606 4,970 3,088
7,000
6,313
6,300
5,562
9,143 5,488 4,941
10,207 3,5179,143 5,488 4,941 3,517 5,600
4,570
5,023
4,900
1,347 2,056 1,332
1,413 8021,347 2,056 1,332 802 4,200
3,957
1,158 419 266986 (95)

1,158 419 266 (95)
3,500
2,800
11,648 7,963 6,539

12,606 4,224
11,648 7,963 6,539 4,224 2,100
1,400
5,903 4,340 3,267
6,925 2,5155,903 4,340 3,267 2,515 700
5,745 3,623 3,272

5,681 1,7095,745 3,623 3,272 1,709 0
2013 2014 2015 2016 2017 2018
1,389 1,497 1,532

451 7171,389 1,497 1,532 717
4,356 2,126 1,740
5,230 9924,356 2,126 1,740 992 Total Deposits
Rupees in Million
965 477 715
1,722 371 965 477 715 371
845,000
3,391 1,649 1,025
3,508 6213,391 1,649 1,025 621 785,477
780,000
715,000
667,181
650,000
70,377 60,265 46,985

88,678 41,521
70,377 60,265 46,985 41,521 585,000
559,398
203,439 157,389 126,677

278,084 88,110
203,439 157,389 126,677 88,110 520,000
468,281
169,429 131,070 100,333
229,892 70,234
169,429 131,070 100,333 70,234 455,000
8,030 6,983 6,650

9,034 4,9268,030 6,983 6,650 4,926 390,000
378,744
- - - - - - - - - 325,000
288,433
13,781 11,080 9,184

16,563 5,975
13,781 11,080 9,184 5,975 260,000
13,956 11,801 10,467

27,147 10,581
13,956 11,801 10,467 10,581 195,000
4,900 4,364 3,669

5,953 3,1704,900 4,364 3,669 3,170 130,000
275 222 201

310 166 275 222 201 166 65,000
0
2013 2014 2015 2016 2017 2018
Total Assets
16.60 15.38 13.67
17.14 12.87
16.60 15.38 13.67 12.87
Rupees in Million
17.38 16.90 15.74
30.05 21.48
17.38 16.90 15.74 21.48 960,000
937,915
1.05 1.10 1.15

1.75 1.671.05 1.10 1.15 1.67 900,000
840,000
10.00 - -
15.00 -10.00 - - - 780,000
788,808
12.50 15.00 5.00

11.00 8.60
12.50 15.00 5.00 8.60 720,000
662,055
660,000
- - - - 35.00 - - - 35.00 600,000
4.63 8.24 9.72

8.59 17.614.63 8.24 9.72 17.61
535,864
540,000
480,000
440,149
420,000
3.75 2.05 1.62

3.50 1.223.75 2.05 1.62 1.22 360,000
332,095
300,000
51.34 45.38 49.85
47.27 53.25
51.34 45.38 49.85 53.25 240,000
21.44 14.59 15.12

21.80 13.57
21.44 14.59 15.12 13.57 180,000
120,000
16.69 11.32 8.91
14.62 8.49
16.69 11.32 8.91 8.49 60,000
0
2013 2014 2015 2016 2017 2018
50.68 54.50 49.96

54.93 59.54
50.68 54.50 49.96 59.54
Share Capital
Rupees in Million
41.5 46.0 46.8
38.6 59.141.5 46.0 46.8 59.1 12,000 11,692
58.13 41.94 23.21

66.32 20.68
58.13 41.94 23.21 20.68 10,027 10,027 10,027 10,027
10,629
10,000
14.89 12.41 12.77
14.08 9.58
14.89 12.41 12.77 9.58
1.88 1.16 0.95
1.46 0.801.88 1.16 0.95 0.80
8,000
27.28 16.28 13.52

23.12 10.62
27.28 16.28 13.52 10.62 6,000
4,000
2,000
0
2013 2014 2015 2016 2017 2018
ANNUAL REPORT 2018 23

Six Years’ Horizontal Analysis
Statement of Financial Position / Profit & Loss Account
Rupees in Million
Statement of Financial Position
2018 18 Vs 17 2017 17 Vs 16 2016 16 Vs 15 2015 15 Vs 14 2014 14 Vs 13 2013 13 Vs 12
Assets % % % % % %
Cash and balances with treasury banks 65,022 1 64,556 15 56,037 28 43,686 47 29,729 4 28,583 49
Balances with other banks 8,255 69 4,896 (59) 12,021 8 11,175 103 5,501 55 3,554 (8)
Due from financial institutions 184,815 26 147,229 14 129,115 28 101,079 11 90,766 1,119 7,443 1,389
Investments 123,743 4 119,238 (8) 130,156 (11) 146,305 28 114,089 (25) 151,614 (1)
Islamic financing and related assets 512,564 22 420,029 35 311,530 50 207,569 18 175,712 38 127,623 44
Fixed assets 13,129 16 11,364 34 8,470 11 7,596 32 5,748 8 5,327 13
Intangible assets 625 22 512 13 455 (1) 461 (12) 525 96 268 59
Deferred tax asset 983 - - - - - - (100) 815 522 131 (76)
Other assets 28,779 37 20,984 47 14,271 (21) 17,993 4 17,264 129 7,552 (6)
937,915 19 788,808 19 662,055 24 535,864 22 440,149 33 332,095 19
Liabilities
Bills payable 23,751 38 17,175 25 13,757 36 10,100 38 7,298 46 4,993 63
Due to financial institutions 36,408 (1) 36,813 15 32,006 135 13,610 (12) 15,465 36 11,375 (38)
Deposits and other accounts 785,477 18 667,181 19 559,398 19 468,281 24 378,744 31 288,433 25
Sub-ordinated Sukuk 14,000 100 7,000 - 7,000 - - - - - - -
Deferred tax liabilities - (100) 8 (99) 1,362 247 393 - - - - -
Other liabilities 37,946 48 25,554 42 18,058 5 17,133 16 14,752 76 8,381 (12)
897,582 19 753,731 19 631,581 24 509,517 22 416,259 33 313,182 20
Net Assets 40,333 15 35,077 15 30,474 16 26,347 10 23,890 26 18,913 14
Represented by:
Share capital 11,692 10 10,629 6 10,027 - 10,027 - 10,027 - 10,027 11
Reserves 15,161 13 13,369 38 9,700 13 8,588 18 7,289 105 3,551 29
Unappropriated profit 13,526 31 10,340 23 8,422 21 6,942 17 5,958 38 4,330 17
(Deficit) / Surplus on revaluation
of assets (46) (106) 739 (68) 2,325 194 790 28 616 (39) 1,005 (6)
40,333 15 35,077 15 30,474 16 26,347 10 23,890 26 18,913 14
Profit & Loss Account
2018 18 Vs 17 2017 17 Vs 16 2016 16 Vs 15 2015 15 Vs 14 2014 14 Vs 13 2013 13 Vs 12

% % % % % %
Profit on financing, investments
and placements 48,625 33 36,427 17 31,027 (6) 32,893 15 28,487 24 23,016 7
Profit on deposits and other
dues expensed (20,457) 30 (15,684) 18 (13,239) (13) (15,181) (2) (15,539) 23 (12,658) 11
Net spread earned 28,168 36 20,743 17 17,788 - 17,712 37 12,948 25 10,358 1
Fee, commission, forex and
other income 6,887 23 5,622 37 4,102 13 3,617 7 3,387 72 1,971 39
Dividend income and gain on securities 575 (71) 2,002 23 1,622 67 971 (32) 1,432 (7) 1,539 56
Total income 35,630 26 28,367 21 23,512 5 22,300 26 17,767 28 13,868 10

Operating and other expenses (19,670) 17 (16,832) 14 (14,787) 11 (13,313) 28 (10,402) 28 (8,128) 17
Profit before Provisions 15,960 38 11,535 32 8,725 (3) 8,987 22 7,365 28 5,740 1
Provisions and write offs - net (1,168) (9) (1,283) (689) 218 (141) (535) 15 (467) 402 (93) (79)
Profit before taxation 14,792 44 10,252 15 8,943 6 8,452 23 6,898 22 5,647 8
Taxation (5,830) 48 (3,939) 17 (3,381) (1) (3,429) 47 (2,328) 38 (1,690) (2)
Profit after taxation 8,962 42 6,313 14 5,562 11 5,023 10 4,570 15 3,957 13

Six Years’ Vertical Analysis
Statement of Financial Position / Profit & Loss Account
Rupees in Million
Assets 2018 % 2017 % 2016 % 2015 % 2014 % 2013 %
Cash and balances with treasury banks 65,022 7 64,556 8 56,037 8 43,686 8 29,729 7 28,583 9
Balances with other banks 8,255 1 4,896 1 12,021 2 11,175 2 5,501 1 3,554 1
Due from financial institutions 184,815 20 147,229 19 129,115 20 101,079 19 90,766 21 7,443 2
Investments 123,743 13 119,238 15 130,156 20 146,305 27 114,089 26 151,614 46
Islamic financing and related assets 512,564 55 420,029 53 311,530 47 207,569 39 175,712 40 127,623 38
Fixed assets 13,129 1 11,364 1 8,470 1 7,596 2 5,748 1 5,327 2
Intangible assets 625 - 512 - 455 - 461 - 525 - 268 1
Deferred tax asset 983 - - - - - - - 815 - 131 -
Other assets 28,779 3 20,984 3 14,271 2 17,993 3 17,264 4 7,552 1
937,915 100 788,808 100 662,055 100 535,864 100 440,149 100 332,095 100
Liabilities
Bills payable 23,751 3 17,175 3 13,757 2 10,100 2 7,298 2 4,993 2
Due to financial institutions 36,408 4 36,813 5 32,006 5 13,610 3 15,465 4 11,375 4
Deposits and other accounts 785,477 84 667,181 84 559,398 84 468,281 87 378,744 86 288,433 86
Sub-ordinated Sukuk 14,000 1 7,000 1 7,000 1 - - - - - -
Deferred tax liabilities - - 8 - 1,362 - 393 - - - - -
Other liabilities 37,946 4 25,554 3 18,058 3 17,133 3 14,752 3 8,381 3
897,582 96 753,731 96 631,581 95 509,517 95 416,259 95 313,182 95
Net Assets 40,333 4 35,077 4 30,474 5 26,347 5 23,890 5 18,913 5
Represented by:
Share capital 11,692 1 10,629 1 10,027 2 10,027 2 10,027 2 10,027 3
Reserves 15,161 2 13,369 2 9,700 2 8,588 2 7,289 2 3,551 1
Unappropriated profit 13,526 1 10,340 1 8,422 1 6,942 1 5,958 1 4,330 1
(Deficit) / Surplus on revaluation
of assets (46) - 739 - 2,325 - 790 - 616 - 1,005 -
40,333 4 35,077 4 30,474 5 26,347 5 23,890 5 18,913 5
Profit & Loss Account
2018 % 2017 % 2016 % 2015 % 2014 % 2013 %
Profit on financing, investments
and placements 48,625 87 36,427 82 31,027 85 32,893 87 28,487 86 23,016 87
Profit on deposits
and other dues expensed (20,457) (37) (15,684) (36) (13,239) (35) (15,181) (41) (15,539) (47) (12,658) (48)
Net spread earned 28,168 50 20,743 47 17,788 48 17,712 47 12,948 39 10,358 39
Fee, Commission, forex and
other income 6,887 12 5,622 13 4,102 11 3,617 10 3,387 10 1,971 7
Dividend income
and gain on securities 575 1 2,002 5 1,622 4 971 3 1,432 4 1,539 6
Total income 35,630 63 28,367 64 23,512 64 22,300 59 17,767 53 13,868 52
Operating and other expenses (19,670) (35) (16,832) (38) (14,787) (40) (13,313) (36) (10,402) (31) (8,128) (31)
Profit before Provisions 15,960 28 11,535 26 8,725 24 8,987 24 7,365 22 5,740 22
Provisions and write offs - net (1,168) (2) (1,283) (3) 218 1 (535) (1) (467) (1) (93) -
Profit before taxation 14,792 26 10,252 23 8,943 24 8,452 23 6,898 21 5,647 21
Taxation (5,830) (10) (3,939) (9) (3,381) (9) (3,429) (9) (2,328) (7) (1,690) (6)
Profit after taxation 8,962 16 6,313 14 5,562 15 5,023 13 4,570 14 3,957 15

Financial Analysis
2018 was the year of significant achievements for the Bank. The The Bank’s equity also increased to Rs 40 billion as compared to
total assets of the Bank crossed Rs 900 billion and grew by 19% to Rs 35 billion last year. The Board has recommended the final cash
reach Rs 938 billion in 2018 from Rs 789 in 2017. dividend of Rs 2.00 per share ( 20%) bringing the total payout to
Rs 3.50 per share (35%) as Rs 1.50 per share i.e. 15% interim cash
Financing portfolio of the Bank crossed half a trillion benchmark dividend was paid alongwith issuance of 10% Bonus Shares.
closing at Rs 513 billion – a growth of 22%. The Bank increased its
financing exposure in all sectors. The Bank’s Corporate, SME / Another milestone during the year was the successful issuance of
Commercial and Consumer financing increased by 14%, 44% & Additional Tier I Sukuk of Rs 7 billion that further strengthened the
41% respectively. Advance to deposits ratio (ADR) of the Bank Bank’s Capital Adequacy Ratio. The Bank’s CAR now stands at
grew to 65%, with all the risk acceptance parameters well within 14.55% - well above the minimum mandatory level of 11.90%.
limits. The Bank has one of the lowest infection ratio of 1.3%. The
Bank’s coverage ratio stood at 139% in 2018 - one of the highest During the year, the Bank further expanded its foot prints and
in the Banking industry in Pakistan. opened 59 new branches bringing the total number of branches to
660 in 181 cities. The Bank remains committed to continuously
The Bank’s investments and placements (under Bai-Muajjal) raise service quality standards and set new benchmarks in
increased to Rs 309 billion as compared to Rs 266 billion in 2018. customer care to ensure service delivery across all channels.
Although, there has been no fresh issue of GOP Ijarah Sukuk, the
Bank managed its liquidity position efficiently through inter bank Statement of Financial Position
placements and the Open Market Operation (OMO) conducted by
the SBP using Bai-Muajjal Structure. 40,333 Rupees in Million
Another commendable achievement during the year was the 18% Equity
growth in deposits - twice the average banking industry growth of Assets
8%, closing at Rs 785 billion. The average current account Liabilities
deposits of the Bank grew by 24% from last year. The Bank’s
8
201
market share of deposits grew to 5.9% as compared to 5.4% in 201

7 35,077
2017. The Bank’s market share for the Islamic Banking Industry as
753,731
a whole including Islamic Banking windows of conventional banks
in Pakistan is 35%. 897,582 788,808
937,915
Islamic Financing and Related Assets (Gross)

2018 2017
8% 10%
5% 19% 5%
23%
6% 5%
Agriculture, food, forestry and fishing
3% Automobile and transportation equipment
Cement
1%
3% Chemical and pharmaceuticals
Construction
2% Individuals
17%
Power (electricity), oil, gas and water
15% 7% Textile
6%
Transport, storage and communication
3% 3% Wholesale and retail trade
Others
21%
10% 19% 9%
Deposits
2018 2017
1% 2% 1% 1%
28% 27%
Government
Individuals
Public Sector Entities
Private Sector
2% 2% Others
67% 69%

Profit and Loss Account CASA to Total Deposit
Year-wise trend in %
The Bank’s Profit after tax grew by 42% to Rs 8.96 billion as 80
compared to Rs 6.31 billion in 2017. The return on average equity 72
75 75 73
71
increased to 23.77% while Earnings Per Share – on enhanced 70 68
capital clocked at Rs 7.67 per share. The Bank’s net spread grew
by 36% primarily due to our continued focus on increasing 60
volume of high yield earning assets, and re-pricing of earning
assets pursuant to increase in Target Rate. The Bank maintained 50
optimal cost of funds through strong relationship management
and better customer experience. 40
30
On an overall basis, fee and commission income of the Bank grew
by 26% and increased to Rs 5.3 billion with major contribution
20
from trade finance commissions. The trade business volume
handled by the Bank crossed a trillion rupee benchmark and 10
grew by 43%. Other contributors to the increase in fee and
commission income were debit card related fee and branch 0
banking income which grew by 39% and 25% respectively over 2013 2014 2015 2016 2017 2018
last year.
NPL and Coverage Ratios
Operating and other expenses increased to Rs 19.7 billion from
139%
Rs 16.8 billion primarily due to rising inflation, rupee devaluation 10
133%
140
and increase in costs associated with new branches, however, 9 130
the rise in expenses is sufficiently absorbed by the growth in the 121%
118%
Bank’s income resulting in improvement in income efficiency ratio 8 116% 120
by 4% from last year. 110%
7 110
Coverage Ratio
The Finance Act, 2018 has further extended the applicability of 6 100
one-time Super Tax, initially levied for tax year 2015, at 4% of the
NPL Ratio
5 90
taxable income of the Bank. This Super Tax has resulted in
additional charge of Rs 660 million for the year 2018. 4 3.60%
80
3.30%
3.80%
3 70
2.14%
2 60
1.34%
1.54%
1 50
2013 2014 2015 2016 2017 2018
Profit and Loss

2018 2017 Rupees in Million
Profit Profit
before tax Profit after tax
after tax Profit
14,792 before tax 6,313
8,962
10,252
Provisions
Provisions 1,283
1,168
Net spread
20,743
Net spread Operating
Operating 28,168 Expense
Expense 16,832
19,670
Non funded Non funded

income income
7,462 7,624
DuPont Analysis
Description 2018 2017 2016 2015 2014 2013
Profit Margin - % 16.0% 14.3% 15.1% 13.4% 13.7% 14.9%
Asset Turnover 0.06 0.06 0.06 0.08 0.09 0.09
Equity Multiplier - Times 22.90 22.13 21.08 19.43 18.04 17.20
Return on Equity (ROE) - % 23.77% 19.26% 19.58% 20.00% 21.35% 22.31%

Cash Flow
Direct Method
For the year ended December 31, 2018 2018 2017
Rupees in Million
Profit / return and other income received 52,066 39,364

Profit / return paid (19,380) (15,425)
Payment to employees, suppliers and others (16,555) (14,599)
16,131 9,340
(Increase) / decrease in operating assets
Due from financial institutions (37,585) (18,114)
Islamic financing and related assets (93,412) (109,195)
Other assets (4,322) (343)
(135,319) (127,652)
Increase / (decrease) in operating liabilities
Bills payable 6,576 2,037
Due to financial institutions (405) 4,808
Deposits and other accounts 118,296 109,164
Other liabilities 8,604 2,991
133,071 119,000
Income tax paid (5,151) (3,837)
Net cash flow from / (used in) operating activities 8,732 (3,149)
CASH FLOW FROM INVESTING ACTIVITIES

Net (investments) / redemption in
- available for sale securities (7,113) 7,887
- associated entities 1,060 7
Dividends received 589 1,164
Investments in fixed assets (3,338) (4,424)
Investments in intangible assets (332) (230)
Proceeds from sale of fixed assets 140 139
Net cash (used in) / flow from investing activities (8,994) 4,543
CASH FLOW FROM FINANCING ACTIVITIES

Issuance of Right Shares - 3,008
Issuance of Sub-ordinated Sukuk - Additional Tier I 7,000 -
Dividend paid (2,913) (3,008)
Net cash flow from financing activities 4,087 -
Increase in cash and cash equivalents 3,825 1,394
Cash and cash equivalents at the beginning of the year 69,452 68,058
Cash and cash equivalents at the end of the year 73,277 69,452
Cash Flow statement in annual financial statements has been prepared in line with the format prescribed by the State Bank of
Pakistan vide its BPRD Circular No. 02 dated January 25, 2018, 'Revised Forms of Annual Financial Statements'.

Summary of Cash Flow
Rupees in Million
2018 2017 2016 2015 2014 2013

Cash flow from / (used in) operating activities 8,732 (3,149) (7,741) 52,687 (44,417) 10,928
Cash (used in) / flow from investing activities (8,994) 4,543 16,945 (30,048) 49,515 (262)
Cash flow from / (used in) financing activities 4,087 - 3,993 (3,008) (2,005) (1,506)
Cash and cash equivalents at beginning of year 69,452 68,058 54,861 35,230 32,137 22,977
Cash and cash equivalents at end of year 73,277 69,452 68,058 54,861 35,230 32,137
Rupees in Million
60,000 52,687 49,515
40,000
16,945
20,000
10,928
8,732 4,543
4,087 3,993
0
(3,008) (2,005) (262)
(3,149) (1,506)
(8,994) (7,741)
(20,000)
(30,048)
(40,000)
(44,417)
(60,000)
2018 2017 2016 2015 2014 2013
Operating activities Investing activities Financing activities

Calendar of Major Events
Date of Incorporation January 27, 1997
Date of Commencement of Business September 29, 1997
Issuance of Scheduled Islamic Commercial Bank license January 31, 2002
Commencement of Operations as Scheduled Islamic Commercial Bank March 20, 2002
Financial Calendar
2018
1st Quarter Results Issued on April 19, 2018

2nd Quarter Results Issued on August 29, 2018
3rd Quarter Results Issued on October 24, 2018
Annual Results issued on February 21, 2019
23rd Annual General Meeting Scheduled on March 28, 2019
2017
1st Quarter Results issued on April 20, 2017

2nd Quarter Results issued on July 26, 2017
3rd Quarter Results issued on October 25, 2017
Annual Results issued on February 14, 2018
22nd Annual General Meeting March 28, 2018
Details of the Board meetings held outside Pakistan

A total of four meetings were held during the year 2018, and all were held in Pakistan.
Issues raised in last AGM

The Annual General Meeting was held on March 28, 2018 at Meezan House, the Bank’s Head Office in Karachi. None of
the participants raised any issues, and as such, there was no need for any further action in this matter.
Monthly Market Statistics of Meezan Bank’s Share during 2018

Market Capitalisation Share Price Sensitivity
Rupees in Billion Share Price KSE 100 Index

105.00 52000
140
102.00 50000
99.00 48000
120
Share Price (Rupees)
96.00 46000
93.00 44000
KSE 100 Index
100 90.00 42000

87.00 40000
80 84.00 38000
81.00 36000
60 78.00 34000
75.00 32000
72.00 30000
40
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

As an Islamic Bank aiming to offer Islamic banking as banking of
first choice, Alhumdulillah, we have successfully instilled
Shariah-compliance in the financial system of this country.
Follow us on
Our Institution
Corporate Profile 34
Credit Rating 34
Shareholders 35
Awards & Recognition 36
History of Meezan Bank 38
Board of Directors 44
Shariah Supervisory Board 47
Corporate Information 49
Board Committees 50
Organization Structure 52
Management Team 53
Management Committees 54
Corporate Governance 56
SWOT Analysis 59
Strategy and
Resource Allocation 60
Risk & Opportunity Report 61
Business Continuity Plan 63
Products & Services 64
Corporate Profile
Founded with the Vision to establish ‘Islamic banking as banking of first choice...’, the Bank commenced operations in 1997 as
Al Meezan Investment Bank Limited. It converted to Meezan Bank Limited, a full-fledged Islamic commercial bank in 2002,
when the State Bank of Pakistan issued it Pakistan’s first Islamic Commercial Banking license. Concurrently, the Bank acquired
the Pakistan operations of Societe Generale, and started commercial banking with a small network of four branches, that has
now grown to become one of the largest banking networks in the country with 660 branches in over 180 cities.
Meezan Bank is a publicly listed company sponsored by leading financial institutions from Pakistan and the Middle East. The
Bank offers a complete range of Islamic banking products and services through an extensive retail banking network.
Meezan Bank has a strong Shariah compliance setup that comprises of a dedicated Shariah Compliance Department, a
Resident Shariah Board Member and a Shariah Supervisory Board comprising of internationally renowned Shariah scholars.
The Bank is well-recognized for its product development capability, Islamic banking research and advisory services, at both
national and international levels.
Credit Rating
2018 2017
Long Term AA+ AA

Short Term A1+ A1+
The JCR-VIS Credit Rating Company Limited, an

affiliate of Japan Credit Rating Agency, Japan, has
upgraded the Bank’s long-term entity rating to AA+
(Double A Plus) and short-term rating at A1+ (A One
Plus) with stable outlook. The short-term rating of
A1+ is the highest standard in short-term rating. The
rating indicates sound performance indicators of
the Bank.
Meezan Bank is the only full-fledged Islamic bank

with AA+ credit rating in the Islamic banking
industry of Pakistan.

Shareholders
Shareholding Structure Rs. in Million %
Noor Financial Investment Co. Kuwait 4,464 38.18

Pakistan Kuwait Investment Company (Pvt.) Ltd 3,507 30.00
Islamic Development Bank Jeddah 1,090 9.32
Others 2,630 22.50
Paid up Capital 11,691 100.00
Noor Financial Investment Company is a Kuwaiti investment company engaged in investment and financial
activities primarily in Kuwait, the Middle East, Asia and other emerging markets. The company was established
as the financing arm of the National Industries Group (NIG), which is one of the largest private sector industrial
groups in Kuwait.
Noor Investment provides a broad range of financial services through its investment banking department.
These activities /services broadly include private equity, investment strategy & implementation, mergers &
acquisition advisory, valuations, hedging & risk management, local / foreign listing, long-term financial planning
and innovative structuring. The asset management department of the company also engages in managing
proprietary and client portfolios of quoted and unquoted securities, real estate and funds in Kuwait, GCC and
the MENA region.
Pakistan Kuwait Investment Company (Private) Limited (PKIC), a joint venture between the Governments of
Pakistan and Kuwait was established in 1979. PKIC is one of the most respected and profitable institutions in
Pakistan. The company, operating for over 30 years in Pakistan, is engaged in investment and development
banking activities in Pakistan. PKIC is the first financial institution in Pakistan that has been rated AAA (triple A)
for the long-term by both PACRA and JCR-VIS Credit Rating Company, an affiliate of Japan Credit Rating
Company.
Islamic Development Bank (ISDB) is located in Jeddah and is an International Financial Institution
established in 1975 in pursuance of a declaration by the Conference of Finance Ministers of Muslim countries
to foster economic development and social progress in member (Islamic) countries. ISDB has a subscribed
capital of USD 70 Billion and enjoys presence in 57 member countries. The Bank participates in equity capital
and grants loans for productive projects and enterprises besides providing financial assistance in other forms
for economic and social development.

Awards and Recognition
2018
Pakistan Banking Awards
Best Bank - 2018
Islamic Finance News (IFN) – Malaysia
Best Islamic Bank in Pakistan
Best Islamic Bank for Treasury Management
– Global Award
Mastercard 2018 MEA Acquirer Forum
Spearheading Acceptance Location Growth
Asset Triple A – Hong Kong
Best Islamic Trade Finance Bank in Pakistan
Best Islamic Retail Bank in Pakistan
Best Islamic Investment Bank in Pakistan
Sukuk Adviser of the Year – Pakistan
Asset Triple A Asia Infrastructure
Awards
Renewable Energy Deal of the Year, Founding President & CEO of Meezan Bank - Mr. Irfan Siddiqui receiving the ‘Best Bank
Hydropower – Pakistan for 2018’ award from Deputy Governor, State Bank of Pakistan - Mr. Jameel Ahmad
Oil and Gas Deal of the Year – Pakistan at the Pakistan Banking Awards ceremony on November 9, 2018.
Global Finance – New York
Best Islamic Financial Institution in Pakistan
The Innovators – ‘The Innovator 2018’ for Mastercard MENA Acquirer Forum Employers Federation of Pakistan
Most Innovative Solution Deployed for Cash (EFP)
Masterpass QR Payments through FonePay
Displacement 1st Position - Best HRM Practices
Islamic Finance Forum of South Asia
(IFFSA) Awards World Islamic Banking Conference 3rd Position - Employer of the Year 2016
Gold Award for Islamic Finance Education Provider Country Level Award for the Banks Based In
PMI Karachi Pakistan Chapter
Gold Award for Islamic Finance Advisory PMO of the Year
Pakistan
Services Provider ICAP and ICMAP
Global Finance – World’s Best Bank 3rd Position - Best Corporate Reports Awards -
Gold Award for Islamic Finance Deal of the Year
Gold Award for Islamic Investment Bank of the Year
Awards Banking sector
Silver Award for Bank of the Year Best Bank in Asia-Pacific Region South Asian Federation of Accountants
The Banker Global Finance - World’s Best Islamic (SAFA)
Islamic Bank of the Year, Pakistan Financial Institutions Certificate of Merit in the 'Private Sector Banks'
Best Islamic Financial Institution in Pakistan category of Best Presented Accounts Award
Global Islamic Finance Awards
Shariah Authenticity Award Asset Triple A Islamic Finance Awards
Shariah Auditor of the Year Islamic Bank of the Year, Pakistan 2016
Asian Banking and Finance Corporate & Best Islamic Retail Bank, Pakistan Islamic Finance News (IFN) - Malaysia
Investment Banking Awards Best Islamic Trade Finance Bank, Pakistan Best Islamic Bank in Pakistan
Syndicated Loan of the Year, Pakistan Best Islamic Investment Bank, Pakistan Best Islamic Bank for Treasury Management
ICAP and ICMAP Sukuk House of the Year, Pakistan - Global award
3rd Position - Best Corporate Reports Awards – Best Supply Chain Finance Programme, for Runner-up ‘Most Innovative Islamic Bank'
Banking sector Meezan Bank and Karandaaz Pakistan - Global award
CFA Society Pakistan Asset Triple A Asia Infrastructure Awards Pakistan Deal of the Year
Islamic Bank of the Year Transport deal of the year, Pakistan for Swat Global Finance - New York
International Finance Award Expressway Best Islamic Bank in Pakistan
Most Innovative Islamic Bank, Pakistan The Banker - United Kingdom The Innovators - ‘Innovator in
PakWheels.com – People’s Choice Islamic Bank of the Year, Pakistan Islamic Finance 2016’
Awards
Global Islamic Finance Awards
Most Popular Bank in Pakistan’s Islamic Auto Asset Triple A – Hong Kong
Shariah Authenticity Award
Financing sector Best Islamic Bank in Pakistan
Employers Federation of Pakistan (EFP) Islamic Finance Forum of South Asia
Best Bank for Digital Innovation
Recognition Award - Best HRM Practices (IFFSA) Awards
Best Digital Banking Product Meezan UPaisa
Recognition Award - Employer of the Year Gold Awards
Best Retail Bank
Best Islamic Bank Of The Year (Fully Fledged)
Islamic Finance Entity Of The Year Best Trade Finance Bank
2017 Islamic Finance Education Provider Best Investment Bank
Pakistan Banking Awards Islamic Finance Advisory Services Provider Sukuk House of the Year
Best Islamic Bank Islamic Finance Capital Markets Service Provider Best Deal, Pakistan
Pakistan Stock Exchange Limited Islamic Investment Bank Of The Year Islamic Finance Forum of South Asia
Top 25 Companies of the Year, 2016 Silver Award (IFFSA)
Islamic Finance Deal – For Syndicated Project Gold Award for ‘Islamic Bank of the Year
Islamic Finance News (IFN) - Malaysia
Finance Facility - Pakistan’
Pakistan Society of Human Resource Capital Markets Service Provider of the Year
Best Islamic Retail Bank - Global Award Management Islamic Microfinance Company/
Pakistan Deal of the Year Best Place to Work in Top 10 Best Place to Project of the Year
CFA Society Pakistan Work Category
Advisory Services Provider of the Year
Islamic Bank of the Year Best Place to Work in Financial Services
The Banker - United Kingdom
Corporate Finance House - Fixed Income Industry Category
Islamic Bank of the Year, Pakistan

Pakistan Banking Awards 2014 Best Islamic Trade Finance Bank in Pakistan
Best Islamic Bank Islamic Finance News (IFN) - Malaysia Best Islamic Retail Bank in Pakistan
CFA Society of Pakistan Best Islamic Deal - Pakistan
Islamic Bank of the Year Highly Commended Deal - Pakistan
Musharakah Deal of the Year
South Asian Federation of Accountants Global Finance - New York
AsiaMoney
(SAFA) Best Islamic Financial Institution in Pakistan
‘Certificate of Merit’ - Best Presented Annual Islamic Finance News (IFN) - Malaysia
Report Awards CFA Society of Pakistan Best Deals of the Year
ICAP & ICMAP Islamic Bank of the Year AsiaMoney
2nd Position - Best Corporate Reports Awards - Asset Triple A – Hong Kong Best Islamic Bank in Pakistan
Banking sector Best Islamic Bank in Pakistan
ICAP & ICMAP
Employers Federation of Pakistan Best Islamic Retail Bank in Pakistan 4th Position - BCR Awards - Banking sector
1st Prize - Best HRM Practices 2016 Best Islamic Trade Finance Bank in Pakistan
PakWheels.com - People’s Choice Sukuk House, Pakistan
Awards Best Deal, Pakistan 2011
‘Most Popular Bank’ in Pakistan’s Islamic Auto Highly Commended - Best Islamic
CFA Association Pakistan
Financing sector Structured Trade Finance Islamic Bank of the Year
RTC-3 Potentials of Islamic Banking Highly Commended Best Deal – Pakistan Islamic Finance News (IFN) - Malaysia
Forum Best Islamic Bank in Pakistan
ICAP & ICMAP
Largest Islamic Bank in Pakistan Best Deal of the Year
3rd Position - BCR Awards - Banking sector
Asset Triple A – Hong Kong
South Asian Federation of Accountants Best Islamic Bank in Pakistan
2015 (SAFA) Best Islamic Trade Finance Bank in Pakistan
Global Islamic Finance Awards (GIFA) Best Presented Accounts Award Best Islamic Deal - Pakistan
Shariah Authenticity Award - Private Sector Banks
Global Finance - New York
Islamic Finance News (IFN) - Malaysia The Banker - United Kingdom
Best Islamic Financial Institution in Pakistan
Best Islamic Retail Bank - Global Award Top Islamic Bank in Pakistan
3rd Best Overall Islamic Bank Rozee.pk
– Global Award Top Employer in the Islamic Banking Industry
2010
Islamic Bank of the Year
Pakistan Deal of the Year
2013 Islamic Finance News (IFN) - Malaysia
Asset Triple A - Hong Kong
AsiaMoney Best Islamic Bank in Pakistan
Best Islamic Bank in Pakistan AsiaMoney
Best Islamic Trade Finance Bank in Pakistan
CFA Society of Pakistan Best Islamic Bank in Pakistan
Best Islamic Investment Bank Islamic Bank of the Year Global Finance - New York
Best Sukuk House in Pakistan Corporate Finance House of the Year Best Islamic Financial Institution in Pakistan
Best Islamic Trade Finance Deal (Fixed Income)
Global Finance - New York 2009
Best Islamic Financial Institution in Pakistan Best Islamic Bank in Pakistan
AsiaMoney Ijarah Deal of the Year
Best Islamic Bank in Pakistan Pakistan Deal of the Year Best Deal of the Year
The Banker - United Kingdom Global Islamic Finance Awards (GIFA)
Top Islamic Bank in Pakistan Global Finance - New York
Best Research and Development in Best Islamic Financial Institution in Pakistan
South Asian Financial Disclosure Index
Islamic Finance
Rankings ICAP & ICMAP
Global Finance - New York 5th Position - BCR Awards - Banking sector
Leading Islamic Bank of the region
Ranked 10th in the Top 15 global Islamic banks Best Islamic Financial Institution in Pakistan
Asset Triple A - Hong Kong
CFA Society of Pakistan 2008
Islamic Bank of the Year Best Islamic Bank in Pakistan
Corporate Finance House of the Year
MasterCard Innovation Forum 2015 Best Islamic Trade Finance Bank in Pakistan
Best Deal of the Year
Best Shariah Compliant Product Highly Commended Best Islamic Deal Pakistan
– MasterCard, Titanium Debit Card ICAP & ICMAP Global Finance - New York
South Asian Federation of Accountants 3rd Position - BCR Awards - Banking sector Best Islamic Financial Institution in Pakistan
(SAFA) ICAP & ICMAP
Best Presented Accounts Award – Private 4th Position - BCR Awards - Banking sector
Sector Bank 2012
ICAP & ICMAP
Islamic Bank of the Year 2007
3rd Position - BCR Awards - Banking sector
Asset Triple A – Hong Kong Islamic Finance News (IFN) - Malaysia
Pakistan Observer
Best Islamic Bank in Pakistan Best Islamic Bank in Pakistan
Largest Islamic Bank

Meezan, the Arabic word for Meezan, the Arabic word for
'Balance' has been taken 'Balance' has been taken
from Surah Al-Rahman. from Surah Al-Rahman.
At Meezan Bank, we believe At Meezan Bank, we believe
in maintaining a balance in maintaining a balance
between the needs of our between the needs of our
shareholders, our customers,shareholders, our customers,
our staff and other our staff and other
stakeholders. This approach stakeholders. This approach
will Insha’Allah help us will Insha’Allah help us
achieve our Vision of achieve our Vision of
‘providing a strong foundation‘providing a strong foundation
for establishing a fair and justfor establishing a fair and just
society for mankind'. society for mankind'.
Additional fold with pictures and awards
1997 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Meezan Bank acts as the Shariah
Structuring Advisor Over
for the historic transaction 350 100 Over

428
of international
Sukuk offering for USD 600 million
Cities
Branches
Cities
Branches
117 Cities
Al Meezan Al Meezan Investment under a mandate awarded by the BANKING Branch Network expands Deposit base crosses 9th largest bank
Government of Pakistan Branch network to 40 cities Rs.100 billion in Pakistan in terms of 8 largest bank
th
Investment Bank Management Ltd. introduced for the first Total deposits reach in Pakistan in terms of branch
becomes a subsidiary of reaches the Rs. 131 billion branch network
acquires Pakistan operations time in Pakistan Bank handles more than network
of Societe Generale and is Meezan Bank through Meezan Bank wins milestone number of Import/ Export
Deposit base grows to Best Islamic Bank in Pakistan 100 branches Deposit base grows to Rs.100 billion of Import/ Business volume
issued the acquisition of majority shares Rs. 70 billion
Rs.13.7 billion in 31 cities Export business Rs. 143 billion Islamic Bank of the Year Total deposits reach
Deposit base grows to
Rs. 34 billion Rs. 289 billion
Branch network reaches Introduction of Tijarah
10 branches nationwide while the Number of branches Best Islamic
reaches 16 financing allowing
deposit base grows to customers to raise funds Financial Meezan Bank acquires
Rs. 7.7 billion Dollar Mudarabah Certificates Number of branches Best Islamic Bank in Pakistan
and Special Musharkah reaches 62 in 21 cities for financing of stocks Institution in Meezan House inaugurated HSBC Pakistan
Certificates launched for liquidity of finished goods Pakistan
Establishment of CFA
Al Meezan management and inter-bank Meezan Debit Total assets cross Total deposits reach
Investment Bank first Islamic Commercial Banking market Import/Export business Cards launched Best Islamic Bank Rs.200billion Society Rs. 380 billion
license by SBP. reaches Rs. 70 billion Dedicated Islamic Banking in Pakistan
1
Now a full-fledged scheduled Training Centers established Islamic Bank of the Year
Deposit base grows to Meezan Bank becomes the Corporate Finance House
Islamic commercial bank, it is Rs. 54 billion in 3 cities Best Islamic Bank in Pakistan
Riba-Free Certificates Deposit base grows to Advisor and Lead Arranger for Best Islamic Trade of the Year (Fixed Income)
renamed as Meezan Bank Rs. 22 billion Best Islamic Bank in Pakistan
of Islamic Investment the first ever short-term Sukuk Finance Bank in Pakistan
launched Number of branches reaches 28 Best Islamic Bank in Pakistan Best Islamic Bank in Best Islamic Retail
A 24/7 Call Center 38 Islamic Banking seminars
Deposit base stood is established Pakistan held in 23 cities, attended by Bank in Pakistan
Corporate Report Award Launch of Best Islamic Deal - Pakistan
at Rs. 5.08 billion over 4,400 participants
Meezan Islamic Institution Best Islamic Bank in Pakistan
ATM/Debit Cards and Deposit Account launched Deals of the Year-Pakistan Islamic Bank of the Year
ATMs are introduced as a product tailored for Islamic Home remittance service
Pakistan's first Shariah-compliant Financial Institutions enabling Launch of Wakalah based available at all branches
Housing finance them to manage their excess financing product for the Best Islamic
product is launched Best Islamic Bank Introduction of Istisna Islamic Bank of the Year development of partnerships Best Deals of the Year
Online Banking liquidity through a checking Pakistan Financial
account with Meezan Bank in Pakistan financing for working capital between Islamic and Institution in Best Islamic Bank in Pakistan
is launched needs of customers Microfinance banks
across all branches Pakistan Musharakah Deal of the Year
Internet Banking launched Best Islamic Bank in Pakistan
Pakistan's first Shariah-compliant SBP establishes a dedicated
Auto Finance product is launched Islamic Banking Department Corporate Report Islamic Bank of the Year Total deposits cross
and constitutes a Shariah Board Award Corporate Report Award Rs. 230 billion Best Islamic Bank in Pakistan
and Meezan Euro Savings Best Islamic Retail Bank in Pakistan
Best Islamic Best Islamic Account as well as Meezan Pound Government of Pakistan Best Islamic Trade Finance Bank in Pakistan
Sukuk House Pakistan
1
Financial Financial Savings Account launched nominates Mr. Irfan Siddiqui &
Institution in Institution in Dr. Muhammad Imran Ashraf Best Deal, Pakistan
8
Best Islamic Structured Trade Finance
8
Pakistan Pakistan Usmani as members of
Meezan Bank stands Best Islamic Trade Finance Best Deal-Highly Commended, Pakistan
Bank in Pakistan Steering committee of
Islamic Export Refinance among the top three Launch of Meezan Islamic banking
scheme is introduced Best Islamic Bank auto-finance providers in Best Islamic Deal Pakistan Visa Platinum Debit Card
in coordination with SBP Best Islamic Bank in Pakistan in Pakistan the country
Best Deal of the Year Agreement with Ethical
Finance Limited for Mobile Banking
SME operations start as an establishing first Islamic App Launched
independent business unit Best Islamic Bank Launch of Meezan
in Pakistan commercial bank in
Premium Banking & Republic of Mauritius
Best Deal of the Year Premium Banking Centers
Profit/Return earned on
Launch of first financing and investment Launch of
Government of Pakistan Best Islamic
activities exceed Financial Launch of Mock Branches
Ijarah Sukuk Rs. 10 billion for staff training
Institution
in Pakistan
Best Islamic Retail Bank in Corporate Internet banking
Launched Technical services and
support agreement with Pakistan
& Best Islamic Trade Finance Launched
Bank in Pakistan Your one window solution for all your eBanking needs
Highly Commended Best Islamic

Implementation of in Sri Lanka Deal Pakistan
new core banking Launched Launch of
application T24
110 Customers’
Appreciation Days and Batch Hiring of over
27 Islamic Banking 550 employees
seminars held across GLOBAL ISLAMIC FINANCE AWARD
the country Best Research and

Official Page Development in Islamic
crosses 85,000 Fans Finance
Launch of Running
Musharakah for working Meezan Titanium
capital requirements of MasterCard Debit Card
Launch of SMS Banking Launched
corporate customers
Official Page
crosses 130,000 Fans
2015 2016 2017 2018
8th Largest Bank
551
Over
Branches
143 570 145
Branches
Over
660 180
Branches
Over in terms of
Branch Network
Cities Cities Cities
Meezan Bank acquires Pakistan

operations of HSBC Oman Best Islamic Bank in Pakistan
Best Islamic Retail Bank
in the world
Awarded ‘Best Bank for 2018’

by Pakistan Banking Awards
16
Agreement Signing with
Karandaaz Pakistan JCR-VIS Credit Rating Company Limited
Best Bank in Asia-Pacific Region upgrades Credit Ratings to
Total deposits reach Islamic Bank of the Year Pakistan AA+/A1+
Rs. 472 billion Best Islamic Bank in Pakistan

Meezan Upaisa - World's First Islamic Capital Markets Service Provider 01/ 1 8 0 1 / 2 5
Branchless Banking Service of the Year in Pakistan

Islamic Microfinance Launch of Visa Platinum
Company/Project of the Year’ & Supplementary Debit Cards
Pakistan for Meezan UPaisa
GLOBAL ISLAMIC FINANCE AWARD Advisory Services Provider
Shariah Authenticity Award of the Year 7
Launch of Meezan Express Account

Corporate Finance House of the year Islamic Bank of the Year
Best Islamic Retail Bank Top 25 Companies of the Year, 2016 Launch of New Internet Banking
Best Islamic Bank in Pakistan Best Islamic Bank for Treasury
3rd Best Overall Islamic Bank Management - Global Award
Pakistan Deal of the Year Most Innovative Islamic Bank Launch of
-Global Award Runner-up Fastest Debit Cards
Best Islamic Best Islamic Bank in Pakistan Activation
Financial Pakistan Deal of the Year over ATM in Pakistan
Most Innovative Solution
15
Institution in Pakistan Deployed for Cash Displacement

First bank in Pakistan to introduce e-Rights
6
Shares Subscription Services for Investors

5
Best Islamic Bank in Pakistan First Islamic bank in Pakistan to facilitate

Best Islamic Bank, Pakistan Best Bank for Digital Innovation e-Dividend Payments & Tax Certificates for
Best Islamic Retail Bank, Pakistan Best Digital Banking Product shareholders
Best Islamic Trade Finance Bank, Pakistan Best Retail Bank Launch of EMV Chip & NFC
Best Islamic Investment Bank, Pakistan Best Trade Finance Bank enabled Debit Card Adopted Idara Al-Khair
Best Sukuk House, Pakistan Best Investment Bank Welfare Society School
Best Islamic Trade Finance Deal, Pakistan Sukuk House of the Year to provide free education
Best Deal Pakistan to underpriviledged
Top 10 Excellent Places to Work children
Best
Shariah-compliant Best Place to Work in Financial
Product Award Services Industry
16
Best Islamic Bank for Treasury

Best Islamic Bank in Pakistan Best HRM Practices Management-Global Award
Innovator in Islamic Finance 2016 Employer of the Year 2016
Centers of Excellence in Meezan Bank and Pak China

Islamic Finance established at Investment Company Limited enter PMO of the Year
PMI Karachi Pakistan Chapter
IBA, LUMS and IMSciences into Strategic Cooperation Alliance Mastercard 2018 MEA Acquirer Forum
(Peshawar) to Capitalize CPEC Opportunities Spearheating Acceptence Location Growth
Meezan Bank’s First Hajj

booths at Haji Camp
8
18
Strategic partner of Launch of secure online

Accidental Death and Permanent 1st World Islamic Finance Forum shopping with 3D secure
Disability and ATM Cash organized by IBA CEIF
Withdrawal Takaful coverage
Joint Financial Advisors to the
GLOBAL ISLAMIC FINANCE AWARD
(Islamic Insurance) of up to
Rs 1 million for all account holders Ministry of Finance for
Launch of issuance of GoP Ijarah Sukuk
New Corporate
Website Developed Shariah-compliant
trading platform at Pakistan
Mercantile Exchange (PMEX)
Online Account Opening Launch of e-IPO service

Form Launched Official Page for investors with CDC
crosses 1 Million Fans
Completion of Sindh's
first-ever Vocational Training
CSR initiative
Board of Directors* Directorships and other recent offices held:
■ Deputy Chief Executive Officer, Finance and Administration,
National Industries Group Holding Co. – Kuwait.
Riyadh S. A. A. Edrees ■ Chairman and CEO, Al Durra National Real Estate
Chairman Company – Kuwait
Mr. Riyadh S.A.A. Edrees has been a Director of Meezan ■ Chairman, Noor Executive Committee – Kuwait
Bank since October, 2012. He is also a member of the
Human Resources and Remuneration Committee of the ■ Vice Chairman, Salboukh Trading Company – Kuwait
Board. Mr. Riyadh has also previously served as the Vice ■ Chairman & Director, Noor Al Salehia Real Estate – Kuwait
Chairman of Meezan Bank’s Board.
■ Director, Noor Financial Investment Company – Kuwait
Mr. Riyadh S.A.A. Edrees holds a B.Sc. degree in
Chemical Engineering from Newcastle Upon Tyne ■ Director, Noor Audit Committee – Kuwait
University, U.K. and M.Sc. in Chemical Engineering from
■ Chairman, Noortel – Kuwait
Kuwait University.
■ Chairman, Shorfat al Safwa – KSA
His skills and experience encompass a wide range of
industries and various roles including Executive Manager ■ Chairman, Durrat Al Shameya Investment – KSA
for Industrial Investments & Development Div. at National
Chairman, Abu Dhabi Marina Real Estate Investment
Industries Group Holding - (Kuwait), Assistant Lecturer at
■
Company – UAE
Kuwait University, Vice Chairman at Gas & Oil Fields
Services Co. - (Kuwait), Board member at Kuwait Rock ■ Director and Chairman Audit Committee, Abu Dhabi
Company - (Kuwait), Vice Chairman at Eastern United Marina Real Estate Investment Company – UAE
Petroleum Services - (Kuwait), Kuwait Ceramic Company -
■ General Manager, IKARUS Real Estate – UAE
(Kuwait), Director at Sajaa Gas Private Limited Co.(UAE),
Board member at K-Electric Pakistan, United Gas ■ Executive Committee Member, ARADI Abu Dhabi
Transmissions Company Limited Co. – (UAE). Investment – UAE
Directorships and other recent offices held: ■ Board Member, Hotels Global Group - Jordan
■ Deputy CEO Investment & Mega Projects, National
Industries Group Holding – Kuwait Bader H.A.M.A. Al-Rabiah
■ Chairman, Privatization Holding Co. – Kuwait Mr. Bader H.A.M.A. Al-Rabiah has been a Director of
■ Board Member, Ikarus Petroleum Industries – Kuwait Meezan Bank since November, 2015. He is also a member
■ Board Member, Noor Financial Investment Co. – Kuwait of the Audit Committee of the Board.
■ Vice Chairman – Noor Telecommunication Co. – Kuwait Mr. Bader H.A.M.A. Al-Rabiah has a strong academic
background in accounting and a focused experience in
■ Chairman, IT Partners Information Technology Co. –
Kuwait investments honed over the past 14 years. He was
involved in establishing the Real Estate Investment
■ Advisory Board Member, Markaz Energy Fund – Kuwait Department at Noor Financial Investment Company and
■ Board Member, Saudi International Petrochemical served as the Chairman at Arab Investment, Real Estate
Company (SIPCHEM) – KSA and Agricultural Development Group, Egypt.
■ Vice Chairman, Airport International Group – Jordan Directorships and other recent offices held:
■ Chairman, Middle East Complex for Engineering, ■ Chairman & CEO Noor Salhia Real Estate Company
Electronics and Heavy Industries Co. – Jordan
■ Chairman, Palms Agro Production
■ Board Member, Investment Committee of Bunyah
Fund of the Kuwait Investment Co. – Bahrain ■ Director, Noor Financial Investment Co.
■ Advisory Board Member, Cleantech I & II Zouk ■ Director, International Hotels Group
Venture Limited – U.K. ■ Reserve Director, Kuwait Finance House
■ General Manager Tamouh National & General
Faisal A. A. A. Al-Nassar Trading & Contracting
Mr. Faisal A. A. A. Al-Nassar has been a Director of ■ Vice Chairman, Al-Durra National Real Estate Co.
Meezan Bank since March, 2015. He is Vice Chairman of ■ Board member, International Hotel Group (Jordan)
the Board, Chairman of the Risk Management Committee ■ Chairman, Arab Investment Real Estate and
and member of the Audit Committee of the Board. Agriculture (Egypt)
Mr. Faisal A. A. A. Al-Nassar has a Bachelor’s degree in ■ General Manager, Sidra Middle East for Electrical,
Accounting and Finance from Kuwait University and has Mechanical and Building Contracting Co.
held many senior management positions in the finance
■ General Manager, Ikarus Realestate (UAE)
industry including Corporate Affairs Executive Manager at
National Industries Group Holding Co., Auditor for ■ General Manager, Noor Al-Salhiya Real Estate
government agencies in Kuwait Bureau of Accountancy Company (KSA)
and Head of Taxation Department, Ministry of Finance, Kuwait. ■ Board Member, Abu Dhabi Marina Real Estate Investment
(UAE)
44 MEEZAN BANK LIMITED

Alaa A. Al-Sarawi Mr. Mansur Khan was a fighter pilot in the Pakistan Air
Force from 1970 to 1978.
Mr. Alaa A. Al-Sarawi has been a Director of Meezan
Bank since January, 2009. He is also a member of the He held Directorships in Engro Corporation, Sudanese
Audit Committee and Human Resource and Remuneration Microfinance Development Facility, Zarai Taraqiati
Committee of the Board. Bank Ltd., National Commodity Exchange Ltd., Saudi
Pak Agricultural & Investment Company Ltd., National
Mr. Alaa A. Al-Sarawi is a Senior Investment Manager at Database & Registration Authority, Kissan Support
the Kuwait Investment Authority (KIA). After successfully Services Ltd., SME Bank Ltd., SME Leasing Ltd., TMT
completing KIA training program, he held various senior venture Capital Fund, Small and Medium Enterprise
management positions in the investment space. He Dev. Auth, Business Competitiveness / Support Funds,
completed his Bachelors of Business Administration, Punjab Small Industries Corporation, Pak-Kuwait
Minor in Government from Eastern Washington Takaful Co. Ltd. and Pakistan Steel Mills Corp Ltd.
University in 1995 and received a Diploma in
Accounting from Kuwait Business College in 1990. He A Certified Director from Pakistan Institute of Corporate
has served as board member in several companies and Governance (PICG), Mr. Khan currently serves on the
has attended many courses, conferences and boards of PKIC, The General Tyre and Rubber Co. of
seminars, both local and overseas. Pakistan Ltd., National Clearing Co. Pakistan Ltd. and
Meezan Bank Limited.
Saad Fazil Abbasi
Mr. Saad Fazil Abbasi joined the Board of Directors of Mohamed Guermazi
Meezan Bank in February, 2018. He is also a member of Mr. Mohamed Guermazi joined the Board of Directors of
the Risk Management Committee of the Board. Meezan Bank in 2018. He is currently serving as Senior
Mr. Saad Fazil Abbasi is a Joint Secretary to the Awqaf Investment Specialist in the Islamic Development
Government of Pakistan and is presently posted in the Bank (IDB).
Ministry of Finance.
Mr. Guermazi holds a Masters Degree in Engineering from
Mr. Saad Fazil Abbasi holds an LL.M. degree in the National School of Bridges and Roads in Paris (Ecole
International Economics & Business Law from Kyushu Nationale des Ponts et Chaussées - Ponts PariTech). He is
University, Japan. He has served as the Joint Secretary also serving as Member of the Board of Irada for
to the Government of Pakistan (Privatization Division) / Microfinance Co. Ltd. which is part of Bank of Khartoum
Director General (Privatization Commission). Apart from Group in Sudan.
Government of Pakistan, he has also worked with
multilateral agencies such as the Asian Development Prior to joining the IDB in 2010, and over a period of 15
Bank and the Department for International Development years, he had been serving as Director of Equities, Asset
(DFID) as a consultant. His Government experience Management, Treasury and Financial Markets at Banque
includes serving in all major Ministries at the Federal de Tunisie, one of the most prominent private commercial
level and on the Provincial Government level as an aide banks in Tunisia. Besides his operational responsibilities
to the Chief Minister of KPK. He has also worked with within Banque de Tunisie, he also served as Chairman of
Regulators such as PEMRA and PPRA where he drafted the ‘Société de Bourse de Tunisie’ - a subsidiary of the
Pakistan’s first law on procurement. Presently he is bank specialized in brokerage in securities; General
posted as Joint Secretary External Finance Wing of the Manager and Chairman of the Board of ‘Placements de
Ministry of Finance. Tunisie’ - an affiliated investment company; Board
Member and Chairman of the Audit Committee of ASTREE
Mansur Khan Insurance company; Board Member of the Tunis Stock
Exchange, as well as Board Member of several companies
Mr. Mansur Khan has been a Director of Meezan Bank
in which Banque de Tunisie holds a participation of
since August, 2016. He is also the Chairman of the
Information Technology Committee and member of the reference.
Risk Management Committee of the Board. Previously, Mr. Guermazi had also served as Deputy
He is the Managing Director of Pak Kuwait Investment Managing Director of the Investment Loan Department at
Co. Ltd. (PKIC) since February, 2014 and has over 30 Banque de Tunisie, Project Officer at the Tunisian Qatari
years of diversified experience, and a proven track record Bank for Investment and Senior Engineer in charge of the
in Development / Commercial / Investment Banking. He budget and follow-up of the activity of the fertilizer plants at
has done Masters in Business Administration (with the Tunisian Chemical Group.
distinction) from Pace University, New York, USA;
majoring in Financial Management. Noorur Rahman Abid
Mr. Mansur Khan has served as President / CEO of Mr. Noorur Rahman Abid has been a Director of Meezan
Zarai Taraqiati Bank Limited (ZTBL), SME (Small and Bank since January, 2014. He is also the Chairman of the
Medium Enterprises) Bank Limited, Managing Director Audit Committee and Human Resources and Remuneration
of Punjab Small Industries Corporation (PSIC) and the Committee as well as a member of the Information
Sudanese Microfinance Development Facility (SMDF). Technology Committee of the Board.
He has international experience of working in Asia,
Africa, USA, Europe and the Middle East. Prior to joining Mr. Noorur Rahman Abid is a Fellow Chartered Accountant
Pak Kuwait as Managing Director, he was associated from Institute of Chartered Accountants in England and
with Weidemann Associates Inc., a Crown Agents USA Wales and has held several senior management positions
company. including Assurance Leader for Ernst & Young Middle East

and North Africa, Engagement Partner for audits of large Directorships and other recent offices held:
wholesale bank based in Bahrain as well as the largest ■ Member of Board of Trustees, Accounting and
Investment bank based in Bahrain, Chairman of Auditing Auditing Organization for Islamic Financial
Standards Committee and Deputy Chairman of Institutions (AAOIFI), Bahrain
Accounting and Auditing Standards Board of AAOIFI
Member, IBA CEIF Board of Management, Centre
(Accounting and Auditing Organization for Islamic
■
for Excellence in Islamic Finance (CEIF), IBA
Financial Institutions). He played an instrumental role in
promoting several successful initiatives, including the ■ Member of Government of Pakistan Steering
Islamic Banking Center of Excellence in Bahrain and was Committee for ‘Promotion of Islamic Banking in
declared winner of the World Islamic Banking Conference Pakistan’ (2013 – 2016)
2012 Industry Leadership Award in recognition of his ■ Member of Government of Pakistan sub-committee
contribution to Islamic banking. on awareness, training and capacity building for
‘Promotion of Islamic Banking in Pakistan’
Directorships and other recent offices held:
■ Member of the PBA Sub-Committee on Islamic
■ Kuwait Finance House, Kuwait Banking
■ Kuwait Finance House, Bahrain ■ President of the Islamic Finance Association of
■ Kuwait Finance House, Malaysia Pakistan
■ Arcapita Investment Management, Bahrain * The Bank has already submitted applications for the
■ Member of Board of Trustees, Accounting and Auditing Fit and Proper Test of the Directors to the State Bank
Organization for Islamic Financial Institutions of Pakistan which is in process of reviewing the same.
■ Dr. Solaiman Fakeeh Hospital, Saudi Arabia
Ariful Islam
Executive Director & Deputy CEO
Mr. Ariful Islam is a senior banker with over 33 years of
experience with various banks in Bahrain and Pakistan. He
qualified as a Chartered Accountant from the Institute of
Chartered Accountants in England & Wales. He is also a
Fellow Member of the Institute of Chartered Accountants in
Pakistan. He has worked with KPMG (formerly Peat
Marwick Mitchell & Co.) prior to his banking career.
Mr. Islam joined Meezan Bank in 1999 as its first Chief

Operating Officer and is presently the Deputy CEO &
Executive Director of the Bank. He is a member of the Risk
Management Committee and Information Technology
Committee of the Board. Mr. Islam is also the Chairman of
the Board of Pakistan’s leading Asset Management
Company, Al Meezan Investment Management Limited, the
largest Shariah-compliant mutual fund in the country.
Directorships and other recent offices held:
■ Chairman of the Board, Al Meezan Investment
Management Limited
■ Member of the HR Committee, Al Meezan Investment
Management Limited
■ Director, Atlas Battery Limited
Irfan Siddiqui
President & CEO
Mr. Irfan Siddiqui is the founding President and Chief
Executive Officer of Meezan Bank. Having articled with
Coopers & Lybrand, London from 1975 - 1979, Mr. Irfan
Siddiqui qualified as a Chartered Accountant from the
Institute of Chartered Accountants in England and Wales.
He has held several senior management positions
including Chief Executive Officer at Al Meezan Investment
Bank Limited, General Manager at Pakistan Kuwait
Investment Company, Advisor to the Managing Director at
Kuwait Investment Authority, Manager Finance and
Operation at Abu Dhabi Investment Company and Senior
Business Analyst at Exxon Chemical (Pakistan) Ltd.

Shariah Supervisory Board
Justice (Retd.) Muhammad Taqi Usmani Awards Received
Chairman – Shariah Supervisory Board IDB Prize in Islamic Banking and Finance 2014
Justice (Retd.) Muhammad Taqi Usmani is a renowned Lifetime Achievement Award presented by the
figure in the field of Shariah, particularly in Islamic finance. Islamic Business and Finance Magazine 2011
He currently holds advisory positions in a number of
His Highness King Abdullah (of Jordan) Award 2011
financial institutions practicing Islamic banking and
finance. Wisamul Istiqlal Award presented by
His Highness King Abdullah of Jordan 2010
Justice (Retd.) Muhammad Taqi Usmani has vast
experience in Islamic Shariah, teaching various subjects His Highness Prince Muhammad bin
on Islam for more than 50 years. He has served as a Judge Raashid Aal Maktoom Award 2004
in the Shariat Appellate Bench, Supreme Court of Pakistan
from 1982 to 2002. He is also the Editor-in-Chief of the Dr. Muhammad Imran Ashraf Usmani
magazine Albalagh (a weekly publication of Jamia Darul Board Member – Shariah Supervisory Board
Uloom, Karachi) as well as an active contributor of articles
in leading Pakistani newspapers. Dr. Mufti Muhammad Imran Ashraf Usmani, son of Justice
(Retd.) Mufti Muhammad Taqi Usmani, graduated with
Justice (Retd.) Muhammad Taqi Usmani graduated from
specialization in Islamic Fiqh (Islamic jurisprudence) from
Punjab University, Pakistan in 1970 and also holds an LL.B.
Jamia Darul-Uloom, Karachi, where he has been teaching
from Karachi University, Pakistan. Prior to these, he
Fiqh since 1990. He also holds an LL.B. and Ph.D. in
completed the Takhassus course, which is the
Islamic finance. He is a member of the administration
specialization course of Islamic Fiqh and Fatwa (Islamic
board of Jamia Darul-Uloom, Karachi. Presently Dr. Usmani
Jurisprudence) from Jamia Darul Uloom Karachi, Pakistan.
is the Member of Shariah Supervisory Board at Meezan Bank.
In March 2004, His Highness Sheikh Mohammad Bin
Dr. Usmani is the author of numerous publications related
Rashid Al Maktoum (Dubai Crown Prince and UAE Minister
to Islamic finance and other Shariah related subjects. He
of Defense) presented a special award to Justice (Retd.)
has presented papers in numerous national and
Muhammad Taqi Usmani in recognition of his lifetime
international seminars and has delivered lectures at
service and achievement in Islamic finance at the occasion
academic institutions including Harvard, LSE, LUMS and IBA.
of International Islamic Finance Forum, Dubai, which is one
of the biggest events in the Islamic finance industry. In the past, Dr. Usmani has served as an advisor / member
of Shariah Boards of several renowned institutions since
Current Board Memberships: 1997 including the State Bank of Pakistan, HSBC - Amanah
■ Permanent Member International Islamic Fiqh Finance, UBS - Switzerland, Guidance Financial Group
Academy, Jeddah, sponsored by OIC USA, Lloyds TSB Bank - UK, Japan Bank for International
Cooperation (JABIC), Credit Suisse Switzerland, RBS
■ Vice President Jamia Darul Uloom Karachi Global, Old Mutual Albarakah Equity & Balanced Funds
South Africa, AIG Takaful, ACR ReTakaful Malaysia,
■ Chairman International Shariah Standard Council set
Capitas Group USA, Bank of London and Middle East
up by the Accounting and Auditing Organization for
Kuwait, BMI Bank Bahrain, Al Khaliji Bank Qatar, Sarasin
Islamic Financial Institutions, Bahrain Bank Switzerland, DCD Group Dubai, International Centre
■ Fellow of the Royal Aal al-Bayt Academy, Jordan for Education in Islamic Finance (INCEIF) and other mutual
and property funds, Takaful Companies and international
■ Member Islamic Fiqh Academy of Sukuk etc.
Rabita-al-‘Alam-e-Islami, Makkah
At present, Dr. Usmani is serving at different capacities at
■ Chairman Centre for Islamic Economics Pakistan since 1991 various organizations which are as under:
■ Chairman Shariah Board Central Bank of Bahrain
■ Faculty Member – Jamia Darul Uloom
■ Chairman Shariah Board Abu Dhabi Islamic Bank, U.A.E.
■ Director – Hira Foundation School
■ Chairman Shariah Board Meezan Bank Ltd., Karachi, ■ Director – Center for Islamic Economics (CIE)
Pakistan
■ Member Shariah Supervisory Board – Meezan Bank
■ Chairman Shariah Board International Islamic Rating ■ Research Faculty Member – Department of Economics
Agency, Bahrain Karachi University
■ Chairman Shariah Board Pak-Kuwait Takaful, Karachi ■ President & Founder Trustee – Ihsan Trust
■ Chairman Shariah Board Pak-Qatar Takaful, Karachi ■ Academic Committee Chairman / Board Member /
Faculty Member – Center for Excellence In Islamic
■ Chairman Shariah Board Arif Habib Investments – Finance CEIF (IBA)
Pakistan International Islamic Fund, Karachi ■ Shariah Board Member – Chairman Shariah Board NBP
■ Member Shariah Board Arcapita Investment Fullerton Asset Management Company (NAFA)
Management B.S.C., Bahrain ■ Shariah Board Member – Al Meezan Mutual Funds
■ Member of Unified Shariah Board of Islamic ■ Shariah Advisor – PMEX
Development Bank Jeddah ■ Chairman – Islamic Index Pakistan Stock Exchange (PSX)
■ Member Shariah Board Guidance Financial Group, USA ■ Shariah Board Member – AAOIFI Shariah Committee

■ Shariah Advisor / Shariah Board Secretary – Guidance Islamic Jurisprudence and Fatwa) from Jamia Darul
Financial Group USA Uloom, Karachi. He is also a Certified Shariah Advisor &
■ Member Central Shariah Supervisory Board – Chartis Auditor (CSAA) from Accounting and Auditing
Takaful Company (Global) Organization for Islamic Financial Institution (AAOIFI).
■ Shariah Board Member – Sarasin Bank Switzerland Mufti Muhammad Naveed Alam joined Meezan Bank in
■ Shariah Board Member – AAOIFI Dubai 2013 as a member of the Shariah Compliance Unit of
■ Shariah Board Member – International Islamic Financial Shariah Compliance Department. His main responsibilities
Market Bahrain IIFM include Islamic banking training, Shariah Compliance
review and Shariah Audit of different departments and
■ Board Member – International Islamic Rating Agency branches.
Bahrain
■ Shariah Board Member – Amanah Islamic Finance He is an active teacher / trainer at Center for Excellence in
(AIFA) Australia Islamic Finance (CEIF) of Institute of Business
Administration (IBA) Karachi, Center of Islamic Economics
■ Chairman Shariah Supervisory Council – Amanah Bank
(CIE) of Jamia Darul-Uloom Karachi, as well as several
Sri Lanka
other renowned universities.
■ President and CEO – Usmani and Co. PVT Ltd.
■ President and CEO – Usmani and Co. Shariah Advisors He is also a member of the Shariah Board of NBP Funds.
PVT Ltd. Prior to joining as RSBM, Mufti Muhammad Naveed Alam
has served as Shariah Advisor of Premier Window Takaful
Operations and also as Shariah Coordinator at Indus
Sheikh Esam Mohamed Ishaq Hospital.
Board Member – Shariah Supervisory Board
Born in Bahrain, Sheikh Esam Mohamed Ishaq graduated

from McGill University, Montreal, Canada and also
studied Shariah with a number of Sheikhs in the
traditional manner.
He is a member of the High Council of Islamic Affairs of
the Government of Bahrain and holds various Shariah
positions in many social, commercial and educational
institutions. Currently, he also teaches Fiqh, Aqeeda
and Tafseer courses in various Centers of Islamic
studies, supervised by the Ministry of Islamic Affairs in
Bahrain.
He holds memberships of the following institutions:
■ The Governance Board of Accounting and Auditing
Organization for Islamic Financial Institutions (AAOIFI),
Bahrain
■ The Shariah Council of the Maldives Monetary
Authority (MMA), Maldives
■ The Shariah Panel of International Islamic Financial
Market (IIFM), Bahrain
■ Advisory Panel in Bahrain Institute of Banking and
Finance (BIBF), Bahrain
In addition to membership of the Shariah Supervisory
Boards of a number of local, regional and international
Islamic Financial Institutions (IFIs), he is the Chairman
of Shariah Supervisory Boards of the following IFIs:
■ The Family Bank for Microfinance, Bahrain
■ Tamweel Africa Holding, Senegal
■ Investment Dar Bank, Bahrain
■ Eco Islamic Bank, Kyrgyzstan
■ Al Barakah Islamic Bank, Pakistan
Furthermore, Sheikh Esam is Chairman of the Muslim

Educational Society, Vice Chair & Shariah Advisor for
Discover Islam Centre & member of the Board of
Trustees of Al- Iman Islamic Schools, Bahrain.
Mufti Muhammad Naveed Alam

Resident Shariah Board Member
Mufti Muhammad Naveed Alam holds a Masters in Islamic
Banking and Finance from University of Karachi and
Shahadat ul Alamiyah and Takhassus (specialization in

Corporate Information
Board of Directors*
Riyadh S. A. A. Edrees Chairman
Faisal A.A.A. Al-Nassar Vice Chairman
Bader H.A.M.A. Al-Rabiah
Mansur Khan
Alaa A. Al-Sarawi
Saad Fazil Abbasi
Mohamed Guermazi
Ms. Laila M. S.A.S.A.S. Abbas (Resigned on February 19, 2019)
Noorur Rahman Abid
Ariful Islam Deputy CEO & Executive Director
Irfan Siddiqui President & CEO
Muhammad Zarrug Rajab**
Mohammad Abdul Aleem**
Talal S.A. Al-Shehab**
* The Bank has already submitted applications for the Fit and Proper Test of the Directors to the State
Bank of Pakistan which is in process of reviewing the same.
** Retired on November 17, 2018
Shariah Supervisory Board
Justice (Retd.) Muhammad Taqi Usmani Chairman
Dr. Muhammad Imran Ashraf Usmani
Sheikh Esam Mohamed Ishaq
Mufti Muhammad Naveed Alam Resident Shariah Board Member
Auditors
EY Ford Rhodes, Chartered Accountants
Chief Financial Officer

Shabbir Hamza Khandwala
Company Secretary
Muhammad Sohail Khan
Registered Office
Meezan House C-25, Estate Avenue,
SITE, Karachi-75730, Pakistan.
Shares Registrar
THK Associates (Pvt.) Ltd.
1st Floor, 40-C, Block-6,
P.E.C.H.S.,Karachi-75400, Pakistan.
Ph: (92-21) 111-000-322,
Fax: (92-21) 34168271
Email: [email protected]
Website: www.thk.com.pk
Contacts
PABX: (92-21) 38103500, Fax: (92-21) 36406049
24/7 Call Centre: 111- 331-331 & 111- 331-332
Email: [email protected]
Website: www.meezanbank.com, www.meezanbank.pk
Social Media:
www.facebook.com/MeezanBank
www.linkedin.com/company/meezan-bank-ltd
www.twitter.com/MeezanBankLtd

Board Committees
Board Human Resources and Remuneration Committee
Mr. Noorur Rahman Abid (Chairman)

Mr. Riyadh S.A.A. Edrees
Mr. Alaa A. Al-Sarawi
Terms of Reference
The Board Human Resources and Remuneration Committee (BHRRC) is responsible for ensuring that the Bank
manages its Human Resource in light of the best practices of the industry. The responsibilities of the BHRRC include
reviewing and recommending Human Resource Management policies to the Board of Directors in light of local and
international best practices which also includes but is not limited to remuneration practices defined by the State Bank of
Pakistan, recommending to the Board the selection, evaluation, compensation (including retirement benefits) and
succession planning of key personnel. The Committee also makes recommendations to the Board regarding the
structure of compensation package of Executive Directors, President & Chief Executive Officer, Key Executives and of
any other employee or group of employees along with ensuring implementation of separate remuneration structures for
material risk takers and material risk controllers. The Committee also monitors the training activities, utilization of training and
development budget and implementation of approved training and development policy of the Bank to ensure that the
members of staff are adequately trained for the job they are expected to perform.
Board Risk Management Committee
Mr. Faisal A.A.A. Al-Nassar (Chairman)

Mr. Mansur Khan
Mr. Saad Fazil Abbasi
Mr. Ariful Islam (Deputy CEO)
Terms of Reference
The Board Risk Management Committee (BRMC) is responsible for assessing Bank’s policies on all major risk categories
including credit, market, liquidity and operational risk and adequacy of the risk management function of the Bank. The
BRMC reviews adequacy of the Bank’s capital in accordance with laid down rules and regulations as per Basel Accord.
It also reviews the techniques developed and implemented to measure the Bank’s risk exposure. Its responsibilities also
include to evaluate the risk profile and appetite of the Bank, and ensuring that systems are in place for monitoring overall
risk of the Bank. The Committee reviews exception reports highlighting deviations from the approved policies as well as
deliberates upon risk-related reports including early warning signals of potential risks emerging from Bank’s activities.
Board Audit Committee
Mr. Noorur Rahman Abid (Chairman)

Mr. Bader Al Rabiah
Mr. Faisal A.A.A. Al-Nassar
Terms of Reference
The Audit Committee is responsible for determination of appropriate measures for safeguarding the Bank’s assets;
review of quarterly, half-yearly and annual financial statements; review of management letter issued by external auditors
and management’s response thereto; review of the scope and extent of internal audit / shariah audit; consideration of
major findings, internal investigations of activities characterized by fraud, corruption and abuse of power and
management's response thereto; ascertaining that the internal control systems are adequate and effective;
determination of compliance with relevant statutory requirements; monitoring compliance with the best practices of
corporate governance and identification of significant violations thereof and oversight of implementation of Internal
Controls over Financial Reporting (ICFR) program across the Bank, ensure effectiveness of overall management of
compliance risk and consideration of any other issue or matter as may be assigned by the Board of Directors.

Board Information Technology Committee
Mr. Mansur Khan (Chairman)

Mr. Noorur Rahman Abid
Mr. Ariful Islam (Deputy CEO)
Terms of Reference
The Board Information Technology Committee (BoIT) is responsible for advising and reporting to the Board on status of
technology activities and digital initiatives for their ease in decision making, reviewing IT and digital strategies as well as
relevant policies before submission to Board. BoIT reviews and approves technology-related policies periodically in light
of major technological /regulatory developments and ensures risk management strategies are designed and
implemented to achieve resilience such as ability to respond to wide scale disruptions, including cyber-attacks and
attacks on multiple critical infrastructure sectors. The Committee also receives periodic updates from IT Steering
Committee to monitor all technology-related projects and ensures that technology procurements are aligned with the IT
strategy approved by the Board. If deemed necessary, the Committee may seek expert opinion from independent
sources wherein the quorum will comprise of any two members.
Dates and Attendance of Board Human Resources and Board Risk Management
Board Audit Committee Board IT Committee
Board Committees during 2018 Remuneration Committee Committee
No. of Meetings 14-Feb 19-Apr 28-Aug 23-Oct 13-Feb 18-Apr 28-Aug 23-Oct 13-Feb 18-Apr 28-Aug 23-Oct 12-Feb 12-Apr 27-Aug 22-Oct
Name of Director Attended 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018
Mr. Riyadh S. A. A. Edrees (Chairman) 4/4 P P P P - - - - - - - - - - - -
Mr. Noorur Rahman Abid 4/4 P P P P - - - - - - - - - - - -
Mr. Talal S.A. Al- Shehab 4/4 P P P P - - - - - - - - - - - -
Mr. Faisal A.A.A. Al - Nassar 4/4 - - - - P P P P - - - - - - - -
Mr. Ariful Islam (Deputy CEO) 4/4 - - - - P P P P - - - - - - - -
Mr.Saad Fazil Abbasi* 0/2 - - L L - - - - - - - -
Mr. Mohammad Abdul Aleem 4/4 - - - - - - - - P P P P - - - -
Mr. Noorur Rahman Abid 4/4 - - - - - - - - P P P P - - - -
Mr. Alaa A.Al Sarawi 4/4 - - - - - - - - P P P P - - - -
Mr. Muhammad Zarrug Rajab 3/4 - - - - - - - - P P P L - - - -
Mr. Mohammad Abdul Aleem 4/4 P P P P
Mr. Mansur Khan 4/4 P P P P
Mr. Ariful Islam (Deputy CEO) 4/4 P P P P
L = Leave of Absence
* Mr. Saad Fazil Abbasi was appointed as Member of Board Risk Management Committee on 19th April, 2018

Organization Structure
AUDIT COMMITTEE BOARD OF DIRECTORS SHARIAH SUPERVISORY BOARD
RESIDENT SHARIAH BOARD MEMBER
Shariah Audit & Advisory
Internal Audit & Business Risk Review
Company Secretariat PRESIDENT & CEO Shariah Compliance
Finance Legal Affairs
Human Resources, Learning & Development General Services and Special Assets Management
Compliance Risk Management
DEPUTY CEO
BRANCH NETWORK BUSINESS SEGMENTS SUPPORT
Bahawalpur Retail Banking, Commercial, SME & Agriculture Finance Operations
Balochistan Treasury & Home Remittances Customer Support
Faisalabad Corporate & Institutional Banking Information Technology & Digital Banking
Gujranwala Consumer Finance Information Security
Hyderabad Investment Banking
Karachi (East)
Karachi (North)
Karachi (South)
Karachi (West)
Lahore (East)
Lahore (West)
Multan
North
Functional reporting
Potohar Administrative reporting

Management Team
Head Office
Irfan Siddiqui President & CEO
Ariful Islam Deputy CEO & Executive Director
Arshad Majeed Consumer Finance
Faiz Ur Rehman Information Technology & Digital Banking
Ijaz Farooq Retail Banking, Commercial, SME & Agriculture Finance
Muhammad Abdullah Ahmed Corporate & Institutional Banking
Shabbir Hamza Khandwala Finance
Zia Ul Hassan Operations
Ahmed Ali Siddiqui Shariah Compliance
Khalid Zaman Khan Human Resources, Learning & Development
Muhammad Raza Customer Support
Munawar Rizvi General Services and Special Assets Management
Syed Tariq Hassan Risk Management
Muhammad Ismail Compliance
Muhammad Sohail Khan Company Secretary
Shahzad Abdullah Treasury and Home Remittances
Urooj ul Hasan Khan Investment Banking
Ebrahim Yakoob Internal Audit & Business Risk Review
Muhammad Farhan Ul Haq Usmani Shariah Audit & Advisory
Muhammad Umar Khan Fareedy Legal Affairs
Regions
Muhammad Saleem Khan General Manager – North & Potohar Regions
Anwar Ul Haq General Manager – Lahore East Region
Kazi Muhammad Aamir General Manager – Karachi East Region
Syed Salman Ahmed General Manager – Lahore West Region
Kamran Zafar Regional Manager – Karachi West Region
Mateen Mahmood Regional Manager – Karachi North Region
Aamir Ali Durrani Regional Manager – Balochistan Region
Abid Hussain Abid Regional Manager – Gujranwala Region
Ameen Muhammad Khowaja Regional Manager – Hyderabad Region
Mashkoor A.G. Khan Regional Manager – Karachi South Region
Moazzam Saeed Khan Regional Manager – Faisalabad Region
Muhammad Tufail Regional Manager – Multan Region
Muhammad Ejaz Nadeem Regional Manager – Bahawalpur Region

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Management Committees
Asset Liability Management Committee Terms of Reference
The Asset Liability Management Committee (ALCO) is
President & CEO - Chairman responsible for reviewing the Asset and Liability structure of
Deputy CEO - Alternate Chair the Bank, transfer pricing, monitoring the liquidity situation,
Chief Financial Officer & Group Head Finance evaluating asset classes and taking decisions with regards to
Group Head Retail, Commercial, SME & Agriculture Finance risks and rewards associated with purchasing and selling of
Group Head Consumer Finance
these assets. Market and liquidity risks are examined based
Group Head Corporate & Institutional Banking
CRO & Group Head Risk Management on stress testing exercises and gap analysis while
Head of Treasury and Home Remittances considering the overall economic environment of the country.
The ALCO is also responsible for monitoring policy rate
movements and taking necessary steps across all assets and
liabilities to ensure that the overall profitability of the Bank is
maximized. This is mainly performed by alterations in the
profit rates offered across different deposit products. It is also
responsible for ensuring that the Bank’s overall operations are
fully compliant with regulatory framework for the business as
provided by the State Bank of Pakistan.
Business Continuity Steering Committee Terms of Reference

The Business Continuity Steering Committee (BCSC) is
Deputy CEO - Chairman responsible for ensuring that adequate business continuity /
CRO & Group Head Risk Management disaster recovery plans are prepared, tested and that decision
Group Head Operations making authority in the event of a crisis is clearly defined. The
Group Head Retail, Commercial, SME & Agriculture Finance
BCSC reviews and recommends Business Continuity Plan for
Group Head General Services & Special Assets Management
Group Head Information Technology & Digital Banking approval of the Board. It facilitates in execution of Business
Head of Compliance Continuity Plan as and when invoked and in resumption of
Manager IT Disaster Recovery critical business activities. BCSC steers BCP project(s) and their
Head Enterprise Risk Management implementation and provides guidance on project direction to
ensure that organizational requirements are met. It is also
responsible for reviewing the findings of mock drills / actual
disasters and facilitating in removal of identified gaps.
Management Committee Terms of Reference

Group Head Information Technology & Digital Banking The Management Committee (MC) is responsible for monitoring
Group Head Retail, Commercial, SME & Agriculture Finance and overseeing the administrative, operational and business
Group Head Treasury & Home Remittances matters of the Bank to ensure that they are carried out keeping
Group Head Consumer Finance the founding principles, objectives and values in view. It also
Chief Financial Officer & Group Head Finance spearheads the adoption of best practices in all operations of
Group Head Corporate & Institutional Banking
the Bank, makes all processes and procedures efficient and
Group Head Operations
Group Head Human Resources, Learning & Development effective and encourages and facilitates improvement at all
Group Head Shariah Compliance levels and in all functions of the Bank. The MC achieves this
Group Head Customer Support objective by scanning the market for latest developments in
Group Head Administration & Branch Expansion, Security, banking practices and procedures, with focus on effective
RAMD and Fraud Risk Management delivery of Islamic banking to Meezan Bank’s customers. It also
CRO & Group Head Risk Management makes recommendations to the CEO / DCEO in light of local and
Company Secretary international best practices in both business and operations. The
Head of Internal Audit & Business Risk Review MC is also responsible for keeping the CEO / DCEO fully
Head of Compliance
informed of their actions and ensures reporting and obtains
Head of Shariah Audit & Advisory
Head of Legal Affairs
approval from the CEO / DCEO before making decisions.
Head of Investment Banking
Credit Risk Management Committee Terms of Reference

President & CEO - Chairman The Credit Risk Management Committee (CRMC) is responsible
Deputy CEO for overseeing credit risk activities on Bank-wide basis while
Chief Financial Officer & Group Head Finance ensuring compliance with regulatory requirements and
CRO & Group Head Risk Management internal policies. The CRMC’s responsibilities also include
Group Head Retail, Commercial, SME & Agriculture Finance providing support and guiding front lines in managing their
Group Head Corporate & Institutional Banking businesses, performing finance portfolio review, establishing
Head of Treasury & Home Remittances
financing standards and benchmarks, maintaining adequate
Head of Credit Risk
industry diversification and deciding upon provisioning. It is
also required for delegating financing approving powers and
prudential limits on large financing exposures.

Management Committees
Disciplinary Action Committee Terms of Reference
Head of Compliance - Chairman The Disciplinary Action Committee (DAC) is responsible for
Group Head General Services & Special Assets Management taking action on any violation of policies and procedures, acts
CRO & Group Head Risk Management of fraud and forgery, breaches of discipline and code of
Group Head Human Resources, Learning & Development conduct, ethics and business practices, law of the land and
Head of Internal Audit & Business Risk Review statutory regulations of SBP by employees.
Disciplinary Action Review Committee Terms of Reference

Deputy CEO - Chairman The Disciplinary Action Review Committee (DARC) is
Company Secretary responsible for reviewing the appeals of the staff against whom
Head of Legal Affairs DAC has already taken disciplinary action. The DARC is
formed with a view to ensure a fresh review of each appeal
filed against the DAC decision.
Compliance & Operational Risk Management Terms of Reference

Committee The Compliance & Operational Risk Management Committee
(CORMC) is responsible for overseeing compliance risk by
President & CEO - Chairman
reviewing the adequacy of controls in place to meet regulatory
Deputy CEO
requirements. The Committee is responsible for promoting
Chief Financial Officer & Group Head Finance
compliance culture in the Bank, facilitate in implementation of
Group Head Information Technology & Digital Banking
Compliance Program and oversee Money Laundering and
Financing Terrorism risk. In addition, the Committee also
oversees Operational Risk Framework by ensuring that
Group Head Shariah Compliance
policies and procedures are in place in all key risk areas and
CRO & Group Head Risk Management
by reviewing Key Risk Indicators. The Committee also monitors
Group Head Human Resources, Learning & Development
level of compliance of major unresolved and recurring issues
Head of Compliance
pointed out in the Internal Audit, Shariah Audit and SBP
Head Enterprise Risk Management
Inspection Report.
IT Steering Committee Terms of Reference

Deputy CEO - Chairman The IT Steering Committee (ITSC) is responsible for identifying,
Group Head Information Technology & Digital Banking prioritizing, and overseeing IT plans and projects. The ITSC
Group Head Operations does this by working with the Information Technology
CRO & Group Head Risk Management department to establish overall priorities and provide general
Head of Compliance direction for IT initiatives by identifying and sponsoring
Group Head Consumer Finance projects that support the Bank's business plan. It also assists
Group Head Retail, Commercial, SME & Agriculture Finance the Bank's senior management, including IT Head, in
Manager Information Security effectively utilizing IT resources to meet the business and
operational needs of the Bank, as well as in resolving conflicts
in demand for IT services and resources.
Investment Committee Terms of Reference

Deputy CEO - Chairman The Investment Committee (IC) is responsible for ensuring that
Chief Financial Officer & Group Head Finance the Bank's investments in listed equity securities are made in
Chief Executive Officer of Al Meezan compliance with the:
Investment Management Limited (i) Investment Policy of the Bank
Chief Investment Officer of Al Meezan
Investment Management Limited
(ii) Limits prescribed under Prudential Regulations issued
by the State Bank of Pakistan and
(iii) Directives of Shariah Supervisory Board of the Bank
The IC also reviews the performance of equity investment
portfolio through its regular meetings and discussions wherein
the members also discuss the forgoing investments and future
strategies in line with investment policy and market dynamics.
Service Board Terms of Reference

President & CEO – Chairman
Service Board is responsible for overseeing service quality
Deputy CEO
of the Bank by reviewing service standards to ensure
quality banking experience for customers. Service Board is
Group Head Information Technology & Digital Banking
the main decision-making body for addressing service
gaps and improving service quality of the Bank.
Group Head Consumer Finance
Group Head Customer Support
Group Head Administration & Branch Expansion, Security,
RAMD and Fraud Risk Management
Head of Service Quality

Corporate Governance
Governance practices positively impact long-term representing diversified educational and vocational
corporate performance and therefore, the Bank is careful backgrounds which are invaluable in determining the
about their implementation. The Bank has a system in overall direction of the organization.
place to ensure that it is fully compliant to all the legal
requirements for e.g. Company Secretary’s Office itself As per the guidelines issued by State Bank of Pakistan,
ensures that all the relevant regulatory requirements are the Board decided to opt for in-house approach with
complied with within the given deadlines. Furthermore, a quantitative technique; and accordingly evaluated
dedicated Compliance Department is also functional performance of overall Board, Board Committees and
which remains in contact with the regulators as well as individual Board Members as per the following
with the internal departments to ensure timely categories:
compliance with the legal requirements.
■ Full Board
Best Corporate Governance Practices ■ Chairman
The Bank’s Best Corporate Governance Practices
■ Individual Directors
include the following:
■ Independent Directors
■ Chief Executive Officer
■ Build a Strong, Qualified Board of Directors and ■ Board Committees
Evaluate Performance
The Board comprises of Directors who are Evaluation by External Consultant
knowledgeable and have expertise relevant to the The Evaluation of Board of Directors is conducted
business, are qualified and competent, and have annually as per the State Bank of Pakistan’s
strong ethics and integrity, diverse backgrounds and requirements. The next evaluation will be carried out by
skill sets. Further, as per regulatory requirement, the external consultants, which is in process.
Board performance is evaluated periodically.
■ Define Roles and Responsibilities Criteria for Performance Evaluation
The Board establishes clear lines of roles and
The Board of Directors, while ensuring regulatory
responsibilities among the Directors, Chairman and
compliance, is also vested with fiduciary responsibility on
CEO.
behalf of the shareholders to protect Bank’s interests,
■ Emphasize Integrity and Ethical Dealing provide strategic direction and monitor the achievement
The Directors declare conflicts of interest and refrain of strategic objectives. The Companies Act 2017,
from voting on matters in which they have an interest. Banking Companies Ordinance 1962, SBP’s Prudential
The Bank has adopted a Conflict of Interest Policy, a Regulations and Code of Corporate Governance (the
Code of Business Conduct that sets out the Bank’s Code) describes the role of Board of Directors along with
requirements and a Whistleblowing Policy. its responsibilities and functions.
■ Formation of Various Board Committees To comply with the requirement of the Code, the Board, in
The Board of Directors has constituted various the year 2014, put in place an effective mechanism for
sub-committees, namely Board Audit Committee, Board Evaluation. All individual Board members answer a
Board Human Resources and Remuneration comprehensive questionnaire focused on evaluating,
Committee, Board Risk Management Committee and from various angles, whether the Board has discharged
Board IT Committee, to manage the relevant areas its duties diligently and with foresight. A committee of
and to give their recommendations to the Board. The Directors is designated to collate individual responses
TORs of these Committees are approved by the and present them to the Board for deliberation and
Board of Directors. discussion. As per process, the responses / feedback
■ Engage in Effective Risk Management from the Directors on each of the above-mentioned
The Board has established its sub committees, who categories is compiled and submitted to the Chairman.
regularly identify and assess the risks including The Chairman discusses the results / findings with each
financial, operational, reputational, environmental, individual Board Member. The authorized Independent
industry-related and legal risks. Directors communicate the feedback in respect of the
Chairman for incorporation in the consolidated
Performance Report.
Evaluation of the Board of Directors
The Board of Directors of Meezan Bank sets the Bank’s Accordingly, the analysis comprises of consolidated
strategic direction and ensures that the organization evaluation results and Action Plan forwarded by the
stays true to this direction - enabling it to achieve its Chairman to further strengthen comparatively weaker
long-term objectives while ensuring regulatory areas and is submitted to the Board of Directors for
compliance. To discharge its fiduciary responsibility of consideration in its meeting.
safeguarding the stakeholders’ interests, the Board of
Directors has developed criteria for its performance This exercise in critical self-assessment allows the Board
evaluation as required by the State Bank of Pakistan and to evaluate its performance and overall effectiveness in
the Securities and Exchange Commission of Pakistan. setting strategies, devising control processes, reading
market trends by monitoring micro and macroeconomic
The Board of Directors discusses strategic objectives, factors, and responding to adverse unforeseen situations
budgetary expenses and projected national and to further the cause of a learning organization. This
international macroeconomic indicators to ensure that the process also ensures that the Board is constantly
Bank’s business strategy stays aligned with the growing intellectually and the responsibility of steering
macroeconomic indicators. The Board of Directors and the Bank to new heights of success is discharged
its sub committees are competent and experienced, effectively and efficiently.

Induction and Training of Directors ■ Ensure that dissent of Directors, if any, is properly
Formal orientation is arranged for Directors. The Bank recorded in the minutes.
also places keen focus on regular trainings regarding ■ Ensure that minutes truly reflect what transpired
updates in law / regulations for the Directors. During during the meeting.
2018, a training on ‘Listed Companies (Code of ■ Ensure that the Board discharges its role
Corporate Governance) Regulations’ was arranged. In effectively and swiftly in line with regulatory
addition, Shariah training was also arranged for the requirements.
Directors, as per the State Bank of Pakistan’s ‘Shariah ■ Ensure that the Board sub committees perform
Governance Framework for Islamic Banking Institutions’. their designated functions with due diligence.
Members of Meezan Bank’s Board are experienced and Roles and Responsibilities of the
qualified professionals who bring a diverse range of Board of Directors
professional and technical expertise to the organization. The Board of Directors is involved in strategic level
decisions to establish and review the strategies and
Directors’ Training Program medium to long-term goals of the Bank, overseeing the
The Bank is in compliance with respect to training business and affairs of the Bank in light of emerging risks
requirements of Listed Companies (Code of and opportunities. The Management of the Bank is
Corporate Governance) Regulations, 2017. responsible for managing day-to-day business affairs in
an effective and ethical manner in conformity with the
Remuneration of Directors strategies and goals approved by the Board and to
As per Policy, the Board of Directors shall, from time identify and manage the principal risks and opportunities
to time, determine and recommend remuneration of which could impact the Bank in the course of carrying out
the Non-Executive Directors (Chairman, Vice its business. It is also the responsibility of Management,
Chairman and members of the Board) for attending with the oversight of the Board and its sub committees, to
Board Meetings, for approval by the shareholders produce financial statements that fairly present the
on a pre or post facto basis in the Annual General financial conditions and results of operations of the Bank
Meeting (AGM), as per State Bank of Pakistan in accordance with applicable accounting standards and
Prudential Regulations. to make timely disclosures to investors as required under
regulatory requirements. Further, Management also stays
If an employee receives any fee exceeding aware of the business and competitive environment and
Rs 25,000/- in a Tax year (July 1st to June 30th) on develops strategies to maintain the Bank’s competitive
account of Director’s Fee or Attendance Fee from business edge.
any one board membership, the entire Fee will be
passed on to Meezan Bank. This amount will not be Roles and Responsibilities of the
counted towards the income of employee but will be
credited towards the Bank’s income. President & CEO
The President & CEO’s role constitutes an absolutely
All Board Members are nominees of our major engaged position, demanding complete involvement and
Shareholders. Meezan Bank consciously does not shepherding of the organization. The role entails the
have a structure in place to incentivize the Board fee. following:
■ Provide an enabling environment within the Bank to

Performance Review of the President facilitate promulgation of a culture of Shariah
& CEO compliance.
■ Ensure execution of the strategy developed by the
The President & CEO of Meezan Bank is responsible for
Board.
supervising and leading the strategic and managerial
■ Ensure that the Bank maintains its business position
affairs of the Bank. Various elements of the President &
and brand image as the leading Islamic Bank of the
CEO’s performance are monitored continuously and
country.
discussed periodically by the Board. As leader of the
■ Efficiently allocate and manage organizational
organization and executor of the strategy approved by
resources and budgets to ensure achievement of
the Board to further the interests of all stakeholders of the
short and mid-term objectives that contribute to the
Bank, the President & CEO is evaluated on parameters
attainment of the long term strategic goals.
such as financial performance and profitability, budget
■ Establish a system of checks and controls to
allocation and utilization of resources, organizational
supplement the fast-paced growth of the Bank.
expansion, sustainability of product lines, credit ratings
■ Provide liaison between the Board and the Bank’s
and inculcation of the desired organizational culture
management to ensure alignment of managerial
which is conducive to professional and ethical
efforts with Board’s directives.
excellence.
■ Foster a culture of professionalism and high ethical
standards within the Bank.
Roles and Responsibilities of the ■ Facilitate an organizational culture of development of
Chairman innovative products and services to meet the
The Chairman of the Board of Directors ensures that the growing needs of a diverse range of customers.
organization keeps true to its long-term Vision.
Responsible for leadership of the Board, the Chairman Role of Shariah Supervisory Board
ensures that the Board plays an effective role in fulfilling The Shariah Supervisory Board (SSB) is entrusted with
all its responsibilities. The Chairman’s role entails the the duty of directing, reviewing and supervising the
following: activities of the Bank in order to ensure that they are in
compliance with the rules and principles of Shariah. All
■ Ensure that all members of the Board may products and services of the Bank are launched with the
participate in all meetings and have the approval of the Shariah Supervisory Board whose role
opportunity to express their opinion. also entails the following:

■ To develop a comprehensive Shariah compliance Non-Executive Directors
framework for all areas of operations of the Bank that At present all the Directors on the Board are
serves as a guiding principle to the Bank for non-executive except for President & CEO and the
maintaining its commitment towards adherence to Deputy CEO.
principles of Shariah.
■ Ensure Shariah compliance of all aspects of the Statement of Compliance with the
Bank by virtue of having unhindered access to all Code of Corporate Governance
books of accounts, records and documents.
The Statement of Compliance with Code of Corporate
■ Guide and direct the Bank through rigorous
Governance is annexed with this annual report.
deliberation on issues placed before the Shariah
Supervisory Board. Accessibility of Annual Report
■ Monitor the Shariah compliance of the Bank through
Annual Report 2018 and other information of the Bank are
Shariah Audit and Shariah compliance reviews and
accessible on Bank’s website: www.meezanbank.com
prescribe appropriate enforcements whenever
needed. Investors’ Relations section on the
Code of Conduct & Ethical Standards Corporate Website
This relevant section is available on the Bank’s website:
for Directors www.meezanbank.com
The Bank has also developed ‘Code of Conduct & Ethical
Standards for Directors’ as per requirements of Code of Investor Grievances
Corporate Governance which is signed by every Director Meezan Bank has established a robust grievance reporting
of the Bank. mechanism which seeks to resolve any complaints or
unattended issues if, despite all vigilance, do occur. The
Directors’ Profiles and their mechanism put in place allows for such matters to be reported
Involvement / Engagement in other electronically, in writing or over the phone. To ensure that the
Companies stakeholders may register their complaints conveniently, a
multitude of online forms are available on Meezan Bank’s
This information has been incorporated in the Directors’
corporate website (www.meezanbank.com). The Investor
profiles.
Complaints Form, on submission, is sent directly to the Office
Informing the Company Secretary's of the Company Secretary. Similarly, a general complaints form
Office on Sale or Purchase of Meezan for reporting and resolution of business-related complaints
Shares sends registered issues to relevant departments. A dedicated
email address ([email protected]) is also in place
Executives are required to inform the Company Secretary
for the express purpose of reporting issues if the stakeholder
about any change in the shareholding in his/her own
feels the need to email rather than use online forms.
name, in the name of his/her spouse and / or
dependent/minor children to the Company Secretary Furthermore, grievances may also be lodged by calling the
through a prior written notice regarding their intention to Bank’s Call Center (UAN: 111-331-331 & 111-331-332), which
do so before executing the transaction and subsequently is functional round the clock, where officers are available to
through provision of complete details of the actual assist stakeholders with their queries and complaints.
transaction within two days of its execution, enabling the
Company Secretary to immediately notify the transaction
to Pakistan Stock Exchange in terms of the revised listing
Managing Conflict of Interest
rules and also to subsequently report the transaction to The Bank has a policy in place for dealing with conflicts
the Board of Directors. of interest relating to members of the Board. Under this
policy, any Director who has a business interest in a
Foreign Directors matter being presented at a Board meeting does not
Security clearance of Foreign Directors is initially done by participate in neither the discussion nor the decision on
the sponsor Shareholders being their nominee Directors. that matter. The policy is applied consistently and there
Subsequently Meezan Bank conducts verification as per was no breach of this policy during the year.
FPT requirements. Finally it is carried out by the
Regulators as per law / regulatory requirements, as their Presence of the Chairman of Audit
appointment is subject to clearance by the Regulators. Committee at the AGM
The Chairman of the Audit Committee attends the Annual
Minority Shareholders General Meeting (AGM) and this is duly recorded in the
The Bank ensures that the interest of the minority minutes of AGM.
Shareholders is protected. In order to ensure their
participation in general meetings, all notices of the
Shareholders’ meetings are timely announced on
Pakistan Stock Exchange (PSX), published in nationwide
newspapers and dispatched at the registered addresses
of the Shareholders as per regulatory requirement. The
Bank also ensures compliance to all the regulatory
requirements and takes all possible steps to encourage
attendance of minority shareholders in their meetings.
Executive Director
The Executive Director serves as a Non-Executive
Director in two companies.

SWOT Analysis
Being aware of the environment in which one operates, as well as of one's own strengths and weaknesses, is a key
element in the success or failure of any business. Meezan Bank's management is cognizant of the fact that the
economy and the banking industry are in a state of flux and regularly conducts SWOT analysis of the organization
to capitalize on its strengths and work on its weaknesses in view of the opportunities available in its environment
and the threats that it needs to overcome. A SWOT summary of the business as it stands today is given below:
S
■ Pakistan's largest Islamic bank ■ Dedicated Shariah Supervisory
STRENGTHS
■ Largest market share of Board comprising of

Pakistan's Islamic banking sector world-renowned Shariah
■ Comprehensive menu of truly scholars
Shariah-compliant products and ■ Dedicated department for
services Shariah compliance, research
■ Strong financial indicators and Shariah Audit
W
WEAKNESSES
■ Limited opportunities for investment of surplus liquidity

■ Limited availability of human resources with Islamic banking knowledge
O
OPPORTUNITIES
■ Increasing awareness about Islamic financial services and demand for

Shariah-compliant products and services
■ Growing local and international Islamic banking market
■ Significant potential for market penetration
T
Macro-economic challenges
THREATS
■
■ Conventional banks entering Islamic banking market
■ Misconceptions and misunderstandings among the general public about
Islamic banking

Strategy and Resource Allocation
The year 2018 marks the completion of 16 years of Islamic Commercial Banking for Meezan Bank in Pakistan. During this
period, Meezan Bank has risen from the 36th to the 7th largest bank in the country in terms of deposits amongst all
commercial banks in Pakistan. Meezan Bank’s robust strategic planning and its execution have been pivotal for its
best-in-industry growth and success. Over the years, we have developed attractive market positions and strong
capabilities that hold potential for solid future growth. With a Vision to ‘Establish Islamic banking as banking of first
choice…’, we have forged ahead with a long-term goal of creating value for all our stakeholders.
Strategic Objectives
Meezan Bank’s strategic objectives are based on the driving forces that are rapidly changing the financial industry.
Macroeconomic conditions such as interest rates, changing customer expectations, growing competition from Fintechs
and rapid digitalization are some of the factors upon which the Bank has formulated its strategic agenda.
During 2018, the Bank’s strategic agenda has been based on the following:
■ Digitalization
■ Customer Experience
■ Innovation
Digitalization
As digitalization continues to transform Pakistan’s banking sector, the Bank has formulated strategies for becoming
more customer-driven and efficient. During 2018, the Bank took several initiatives to achieve this objective including
launch of new internet banking website, back-end automation to reduce the daily extraction processing time by more
than 75%, as well as automation of payment systems for better customer experience.
Customer Experience
Meezan Bank works with an ambition to deliver the best customer experience on the basis of a strong value
proposition. To this end, the Bank is not only digitalizing its service model but is also implementing ways to deliver
higher service levels. With the establishment of a Service Board, and strong focus on training, the Bank is working on
ways to build and maintain a strong pipeline for enhanced customer service.
Innovation
During 2018, the Bank continued to invest substantial resources in innovation and responding to new competitive
forces. To achieve this objective, the Bank engaged in a series of initiatives to develop its Alternate Distribution
Channels and to ensure that it remains in a position to capitalize on technology trends. An example of this is the
introduction of the fastest debit card activation via ATMs in Pakistan, reducing the processing time to merely 30
seconds or less.
Resource Allocation Plan

Capitals including financial capital, human capital as well as intellectual capital are key considerations while developing
the Bank’s strategic objectives as well as its risk appetite. The Bank ensures its capital position is such that it is adequate
to support its business activities. Resource allocation and capital management are therefore integrated in the Bank’s Risk
Management and Governance processes.
Realizing that the real benefit of the strategic planning process lies in its effective implementation, a dedicated Strategy
Department has also been set up to assist with the implementation of this plan. To ensure its effective communication and
implementation within the Bank, the Balanced Scorecard (BSC) methodology has been used.
For effective resources allocation (especially in wake of Bank’s growth trajectory) and to maximize cross-functional
congruence towards Bank’s objectives in line with its strategic plan, several groups / departmental level BSCs have also
been prepared with performance driven measures, timelines, and specified targets.
Moreover, several strategy sessions for different groups, department heads and managers have also been arranged with
the President & CEO and Deputy CEO in order to ensure that their KPIs are relevant towards realization of Meezan Bank’s
corporate strategy, with optimum levels of capital and resources.
Liquidity Management
The Bank’s primary liquidity management objective is to meet the expected and unexpected cash flows while supporting
its business and customers and also maintaining strict adherence to its Shariah compliance policies. In order to achieve
this objective, the Bank ensures liquidity management based on the monitoring of short and long-term liquidity risks.
These risks are monitored by various functions across the organization, depending on its type. Deployment of excess
liquidity however, remains a challenge for the Bank that requires continuous support from Regulators and Government at
par with conventional banks especially in medium to long-term scenario.
Meezan Bank’s strategic objectives are therefore aligned with its risk appetite, liquidity requirement and its capital plan.

Risk and Opportunity Report
Opportunity loss is one of the most important concerns for all entities, irrespective of the nature, size and complexity of
their business; caused by missing business opportunities that arise when necessary risks are not taken. Pursuing
opportunities requires taking risks, which most are reluctant to do so, because of the fear of potential negative
consequences. This requires periodic review of risk appetite in line with strategic objectives and business goals. This
equally applies to the banking business as well, which by its very nature is risky, coupled with enhanced opportunities in
a rapidly changing environment. Highly competitive banking industry and entry of non-traditional financial intermediaries
and channels may lead to irreparable recovery because of missed opportunities. This requires futuristic vision,
appropriate strategy and its realistic transformation.
Key Sources of Uncertainity

Banks are typically exposed to commercial and financial risks including but not limited to credit, concentration,
liquidity, market, operational, profit rate and equity investment risks. However, compliance and cybersecurity risks
have also assumed unprecedented challenges in moving towards untapped markets and alternate distribution
channels. Importantly, Meezan Bank being the largest Islamic bank in the country is fully cognizant of the
importance of these risks including the Shariah compliance risk that is only unique to Islamic banking businesses.
Changing dynamics result in uncertainties for different sectors of the economy. Exchange rate pressure, depleting
foreign exchange reserves, widening trade and external deficit, significant increase in policy rate, volatility in
international oil prices along with continuous pressure in stock market are major parameters determining the trend
of economy of the country. Rising inflation, low GDP growth, recurring circular debt, increasing cost of energy
supplies and in the backdrop, prospective conditionalities will have an impact on the overall business environment.
Initiatives of newly elected government with reference to austerity measures, improving fiscal discipline,
governance reforms, ease-in-doing business environment, low-cost housing schemes, environmental protection
drives and plans to give relief to down trodden segments of the society should be seen in the positive direction with
close watch.
Impact of significant increase in policy rate should have positive impact on profitability of banks; however, going
forward it may lead to increased level of non-performing financing and this requires cautious approach in booking
new assets. The policy rate rise may also adversely impact private financing demand in the country. However,
improved security condition, tightening of illegal channels to curb money laundering, and new Government’s
agenda of broadening tax base and related business friendly reforms will have a positive impact on the overall
economy and banking sector too. Implementation of deposit protection mechanism to facilitate small deposits will
increase the confidence in the banking industry.
Enhanced focus for financial inclusion in the form of branchless and digital banking, need for efficient and secure
alternate distribution deliveries with multiple services, room for enhanced small and medium financing, search for
new channels to upscale fee-based income, continuous pressure for improving service quality standards and
outreach of fintechs in embracing wide range of activities put pressure on banking sector to think and act out of the box.
The continuous engagement of Pak-China Governments to remove uncertainties about materialization of strategic
initiatives under China Pakistan Economic Corridor (CPEC) will be an important determinant in the overall growth of
economy. However, CPEC has its own challenges in terms of its regional context in addition to financial & feasibility
intricacies of projects involved. Several opportunities can be created under CPEC which include infrastructure
project financing and share of Pakistani banks in those projects. The management of foreign currency reserves,
exchange rate parity, movement of policy rate, balance of payment position, circular debt management,
requirements for private and public sector funding and structural reforms will play a major role in determining the
course of economy that will also have direct bearing on the performance of banking sector.
In the context of Islamic banks, deployment of excess liquidity remains a challenge that needs continuous support
from regulators and Government at par with conventional banks especially in medium to long term scenario.
Meezan Bank continued its journey of growth by exploring opportunities to achieve its strategic objectives while ensuring
effective risk mitigates and controls in place. Under the overall supervision of the Board of Directors and Shariah
Supervisory Board, various business units of the Bank continued to explore new business opportunities in close
coordination with Risk Management, Compliance, Product Development, Shariah Compliance, Information Technology
and Operations departments, keeping in mind the risk appetite of the Bank. In the emerging scenario and considering
new trends in consumerism, the availability of large data, its proper analysis and usage for enhancing reach of customers
for banking services provide new opportunities to explore upon. New business opportunities are supported through
state-of-the-art data center, strengthening of core banking system, broad spectrum of alternate distribution channels with
enhanced security environment, broadened branch network, customer-centric service quality parameters and increased
focus on personalized banking.

While searching for new business opportunities, the Bank fully recognizes the importance of credit, market, liquidity,
strategic, Shariah non-compliance, regulatory and reputational risks as well as risks arising from people, processes,
systems and external events. This requires adequate capital base to ensure financial viability, absorb risk losses and
long-term resilience of the Bank.
Significant growth in the Bank along with strategic direction / business objectives set by the Board of Directors coupled
with the enhanced capital adequacy requirement by State Bank of Pakistan under Basel Framework necessitated solid
capital availability all times. The Bank is well equipped to ensure reasonable cushion in its capital adequacy over and
above the regulatory requirement. The Bank successfully issued first ever Shariah-compliant perpetual Sukuk certificates
in Pakistan amounting to Rs 7 billion in 2018. The Bank has been continually improving quality of its capital by
strengthening its core capital mainly in the form of reserves and unappropriated profit while ensuring dividends for its
shareholders. The close monitoring of capital adequacy in view of the business targets help the Bank to have effective
capital plan in place ahead of the regulatory capital adequacy road map.
The Board and its Committees are actively involved in further strengthening its policy framework so as to determine the
Bank’s risk appetite and tolerance levels. All policies on wide range of subjects are deliberated in detail in the Board
Committees. During the year 2018, the Board of Directors approved a large number of policies, plans and strategy
documents. Duly approved policies provide framework to operate the Bank within the limits set by the Board and to
achieve strategic objectives.
The risk appetite is defined by focusing on the level of material risks the Bank is willing and prepared to take while
pursuing its business and strategic goals, recognizing a range of possible outcomes as business plans are
implemented. Meezan Bank’s risk appetite is expressed both in qualitative and quantitative terms to allow tracking of
performance in line with its strategic plan, business environment and expectations of stakeholders.
Statement of Board of Directors on Risk Assessment

The Board of Directors and its sub-committees comprising of Board members thoroughly assessed all principal
risks including but not limited to credit, liquidity, solvency and compliance risks through various reports and early
warning indicators so as to ensure that the Bank has in place necessary policies, procedures, systems and controls
to mitigate risks that may affect its business objectives, further performance, financial viability and sustainability.
The Bank has been continually improving upon its policy framework, capital base, products and services offerings,
internal controls environment and governance framework that is equally appreciated in terms of its improved external
rating and the ‘Best Bank’ award. Risk management in banking has transformed over the period and is being dealt with
at enterprise level, largely in response to regulations that emerged from the global financial crisis, capital adequacy
standards, anti-money laundering and anti-terrorist financing initiatives, technological innovations, increase in
cyber-crime activities and increasing needs of customers.
The Risk Management Framework established by the Board of Directors has been further strengthened by enhancing
oversight by the Board and its Committees along with various Management Committees. The Bank implements an entity
wide ‘Three Lines of Defence’ model for risk management. Business lines / front offices serve as first line of defence and
are primarily responsible for managing risks on day-to-day basis. Risk management and other control functions being the
second line of defence are responsible for assisting business lines for designing and implementing adequate controls to
manage risks. The Internal Audit function is responsible for providing independent assurance on adequacy of Bank’s risk
management environment.
The Bank vigorously improves upon its systems, tools, techniques, trainings & development of its human resources to
better equip itself for fulfilling everchanging requirements of its stakeholders. Continuous refinement of processes and
their documentation, enhanced coverage of risk indicators, escalation mechanism and continuous developments in
management information systems further strengthened the control environment of the Bank. The Bank focused on
comprehensive risk analysis, high service quality standards, capacity building of control, support and business functions
and enhanced level of post facto monitoring to manage risks associated with strategic plan and performance indicators.
The Bank emphasizes on diversification while booking of assets and liabilities. All material exposures are managed and
monitored actively. The Bank has enhanced its collaboration with solution providers for strengthening its internal controls
and improving upon delivery of its services. Risk management techniques facilitate in identification, assessment,
measuring, reporting and management of both conventional risks and risks peculiar to Meezan Bank. Further, these tools
are subject to continual development and refinement. Risk Management strategies for various risk types and business
continuity and recovery plans, IT disaster recovery arrangements and early warning signals are being actively managed
to mitigate actual and potential risks. These improvements help the Bank to achieve its strategic objectives and key
performance indicators. This enables the transformation of Bank’s risk management practices from being ‘crisis fighters’
to ‘proactive and systematic risk management’.

Materiality Approach
The Bank gives due consideration to materiality concept while managing its risks. Resources are deployed
efficiently to medium to high risky areas while minor risks are typically managed through transfer and outsourcing
arrangements. The Bank manages all of its core operations on its own. Regulatory and Shariah compliance is at the
heart of materiality approach while managing existing operations and taking new initiatives.
Because of integrated efforts, the Bank has significantly expanded its deposit base, financing portfolio and branch
network without exposing itself to unwarranted risks. The Bank will continue to explore new business opportunities
equally supported by effective risk measures, robust products and technological support to serve wide range of
customers Insha’Allah.
Business Continuity Management - 2018

The Business Continuity Management (BCM) is a management process to avoid and manage risks associated with
disruption of mission critical operations so as to ensure resilience of Bank’s operations. It details plans and procedures
to be implemented before, during and after disaster events to maintain continuity of businesses. In Meezan Bank, the
business continuity is managed at strategic, tactical and operational level. It involves well defined plans, effective
decision-making processes, description of distressed scenarios, coordinated efforts among stakeholders and
operational continuity to safeguard the interests of the Bank’s key stakeholders, reputation, brand image and value
creating activities. The Bank has in place a comprehensive business continuity framework with clear set of governance
structure, business continuity and information technology disaster recovery plans, clearly defined roles and
responsibilities of individuals and teams for disaster response, recovery, resumption and restoration of activities to a
pre-defined level of operation following disruption. The Board of Directors approved Business Continuity and Information
Technology Disaster Recovery Plans subsequent to their deliberations in the Board and Management Committees.
Board approved plans follow procedural documents on business continuity.
BCM program is in line with the guidelines issued by the regulator and industry standards and is subject to periodic
reviews. It sets out the agreed arrangements for bringing disaster events under control and ensures availability of
necessary resources for maintaining critical business functions. Having a BCM framework in place helps the Bank to
ensure safety of human resources, protection of critical assets and resumption of mission critical activities from alternate
processing site(s) in case the primary site(s) are not accessible or available. In Meezan Bank, the first priority is always
to ensure the safety of human life in case of any disaster. Detailed business continuity including information disaster
recovery plans, has been established with the approval of the Board of Directors. The Bank maintains Alternate
Processing Sites at three different locations within Karachi with the overall objective to ensure resumption of Mission
Critical Activities (MCAs) in case of disaster. IT disaster recovery is managed from Islamabad. The Bank’s BCM team
continuously strives to improve upon business continuity preparedness which enables the Bank to continuously deliver
its mission critical services and products to its customers. Over the period, the Bank has streamlined the process of
active communication and escalation of events that may impact business continuity. Rapid response to such events lead
to minimal disruptions. Coordination among various stakeholders has been further strengthened for cohesive planning
and response. Moreover, the Bank has continued testing the effectiveness of business continuity arrangements through
periodic drills, performance of critical operations from alternate sites, branch evacuation procedures have been updated
and emergency response teams have been further streamlined. The Bank conducted evacuation drills for its entire
branch network successfully that further strengthens the Bank’s preparations to cope with unwarranted eventualities.
Findings of drills are reviewed and necessary improvements are an on-going process. This helps in strengthening the
confidence of stakeholders regarding the availability of products and services under stress scenarios and embeds
business continuity within the organizational culture of the Bank.

Products and Services
Meezan Bank offers a diverse range of Shariah-compliant banking products and services to cater customer
requirements. All products of the Bank are approved by the Shariah Supervisory Board and are completely
Riba-free.
Meezan Rupee Current Account Meezan Rupee Savings Account

This is a checking account that works Meezan Bank's Rupee Savings
on the basis of 'Qard' and provides Account is ideal for short-term
the convenience of conducting investments and transactional needs.
day-to-day transactions with ease and The account provides monthly profit,
comfort. There is no restriction on along with a variety of free packaged
withdrawals or number of transactions benefits. Profit is calculated on daily
and there is no deduction of service balance and credited into the
charges if the balance maintained is account on a monthly basis. Minimum
low. The account is ideal for daily investment required for opening an
transactional needs of individual and account is Rs 100 and there is no
business entities. deduction of service charges if the
balance maintained is low.
Meezan Asaan Current Account Meezan Asaan Savings Account

Meezan Asaan Current Account Meezan Asaan Savings Account
provides swift and hassle-free provides swift and hassle-free
account opening process, since account opening process, since
there is no requirement of submitting there is no requirement of submitting
any proof of income document for any proof of income document for
opening this account. Account works opening this account. Account works
on the basis of ‘Mudarabah’ and can
on the basis of ‘Qard’ and can be
be opened with a minimum deposit of
opened with a minimum deposit of
Rs 100 and a valid CNIC. Maximum
Rs 100 and a valid CNIC. Maximum credit balance limit is Rs 500,000.
credit balance limit is Rs 500,000. Maximum withdrawal limit per month
Maximum withdrawal limit per month is Rs 500,000.
is Rs 500,000.
Meezan Express Current Account Meezan Express Savings Account

Meezan Express Current Account has Meezan Express Savings Account has
been designed to facilitate the been designed to facilitate the
beneficiaries of home remittance and beneficiaries of home remittance and
encourage them to use formal banking encourage them to use formal banking
channels. The biggest advantage of channels. The biggest advantage of
Meezan Express Current Account is Meezan Express Savings Account is
that it can be opened on the basis of a that it can be opened on the basis of a
CNIC only* & there is no withholding tax CNIC only* & there is no withholding tax
on cash withdrawals through cheque or on cash withdrawals through cheque or
ATM. Meezan Express Current account ATM. Meezan Express Savings
can only be fed through home remittances, account can only be fed through home
no other credits are allowed. remittances, no other credits are allowed.
*Terms and conditions apply *Terms and conditions apply
Foreign Currency Current Account Meezan Bachat Account

Meezan Foreign Currency Current Meezan Bachat Account is a savings
Account is a ‘Qard’ based account account that offers a higher expected
that can be opened with just 100 profit. The minimum investment
USD/Pound/Euro. There is no deduction required for opening an account is
Rs 50,000. Profit is calculated with a
of service charges if the balance
higher weightage for account
maintained is low. balance up to Rs 25 million. There is
no restriction on withdrawals or
numbers of transactions and there is
no deduction of service charges if the
balance maintained is low.

Karobari Munafa Account Monthly Mudarabah Certificate
Karobari Munafa Account is The Monthly Mudarabah Certificate is a
specifically tailored for large short-term deposit product for an
corporates or GoP-controlled entities investment period of one month only.
where profit is calculated on daily Profit is paid on maturity with
balance and credited into the re-investment option available on a
account on a monthly basis. The continuous basis. Minimum investment
minimum investment required for required is Rs 100,000. Pre-mature
opening an account is Rs 1 million. withdrawal can be made as per the
There is no restriction on withdrawals approved schedule.
or number of transactions and there
is no deduction of service charges if
the balance maintained is low.
Foreign Currency Savings Account Certificates of Islamic Investment

Meezan Foreign Currency Savings Certificates of Islamic Investment are
Accounts are excellent business Term Deposit Certificates for investment
tools for individuals and corporate periods ranging from 3 months to 5
clients both for meeting their years with profit payment on monthly,
business needs and for diversifying quarterly and maturity basis. Minimum
their investment in different foreign investment required is Rs 50,000. There
is no limit on maximum investment.
currencies. These accounts allow
Pre-mature withdrawal can be made as
customers to not only earn Halal per the approved schedule.
profits every month but also
safeguard their investment against
currency fluctuations. Meezan
Foreign Currency Savings Account
can be opened by individuals,
sole-proprietorships, partnerships
and limited companies in 100 USD
/ Pound / Euro only.
Meezan Kids Club Account Meezan Amdan Certificate

Meezan Kids Club Account is Meezan Amdan Certificate is a Term
introduced for children under the age Deposit Certificate that offers a
of 12 years to cultivate the habit of higher expected monthly profit to
saving in the early years. The investors for periods of 5 1/2 & 7
account can be opened with Rs 500 years. It is ideal for those individuals
only. The profit is paid on monthly and organizations that need a regular
basis. VISA Debit card fee is waived stream of monthly income. Minimum
for the first year. Exciting gifts are investment required is Rs 100,000.
given to Kids Club members on However, for senior citizens, widows
account opening. and disabled, minimum investment
required is Rs 50,000. Pre-mature
withdrawal can be made as per the
approved schedule.
Meezan Teens Club Account Monthly Mudarabah Certificate

Meezan Teens Club Account is The Monthly Mudarabah Certificate is a
Pakistan's first teens account short-term deposit product for an
designed to cater the requirements investment period of one month only.
of the age group of 12 to 18 years. Profit is paid on maturity with
re-investment option available on a
Teens Club Account can be opened continuous basis. Minimum investment
from Rs 1,000. The profit is paid on required is Rs 100,000. Pre-mature
monthly basis. VISA Debit Card fee is withdrawal can be made as per the
waived for the first year. Exciting gifts approved schedule.
await the Teens Club members upon
account opening.

Dollar Mudarabah Certificate Smart Remittance Wallet
Dollar Mudarabah Certificate is a Smart Remittance Wallet is a unique
foreign currency term deposit wallet account with a saving facility
certificate through which the that allows customers to receive
customer can invest US Dollars for remittances directly in their account
defined period ranging from 3 months and get free airtime of Rs 2 against
to 3 years and earn profit six-monthly each dollar received. Smart Remittance
or at maturity. Minimum investment Wallet also gives good profit rates on
required is $10,000 and there is no savings, with the flexibility to use the
maximum investment limit. Pre-mature money at any time. The key product
withdrawals can be made as per features include no minimum deposit
approved schedule. requirement, no withholding tax on
withdrawals and instant account
activation through the use of biometric
technology. Biometric facility will also
allow customers to withdraw cash
from Meezan Bank branches. The
Smart Remittance Wallet holder can
Takaful Coverage maintain balance upto Rs 1.5 million.
In line with its customer-oriented
strategy, Meezan Bank is offering
Takaful coverage to all of its account
holders in case of Accidental Death Online Branches
or Permanent Disability. Customers Meezan Bank offers free online
maintaining an average monthly banking facility on all Pak Rupee Online Banking
balance of Rs 10,000 and above,
are entitled to a Takaful cover of up to accounts to online banking
Rs 1 million. In addition, ATM cash customers. This enables the Bank’s
withdrawal Takaful Coverage, on the customers to access their accounts
amount withdrawn from any ATM, is and conduct transactions from any
offered to all the account holders, in of Meezan Bank’s 660 branches
case money is snatched within the nationwide, regardless of in which
radius of 1.5 kms and 30 minutes. branch or city they have their
account. This facility provides great
Conditions apply. Please refer to the Bank’s
website. convenience for depositing and
withdrawing cash, making pay
orders and availing numerous other
banking services.
Meezan Kafalah
Meezan Kafalah is a savings plan
with Takaful coverage up to Rs 15 Smart Payroll Solution
million through which customers can Smart Payroll Solution enables
save for their future plans such as companies to manage payments
education or wedding of their child, (salary, pension, staff reimbursements
going for Hajj, planning for old age and bonus) in a cost effective, secure
etc. Meezan Kafalah is a and efficient manner. It not only allows
Shariah-compliant alternative to cash withdrawals through ATMs, but
bancassurance with easy exit option also allows customers to pay bills,
at any time. An individual can start top-up mobile credits and transfer
his plan with monthly contribution as funds to any 1Link member bank
low as Rs 2,000 only. Plans are through Meezan Bank ATMs.
available from 3 to 15 years. Companies can easily issue ATM card
to their employees and once
employees’ salaries are loaded onto
Meezan Labbaik
their accounts, they can immediately
Meezan Labbaik facilitates customers
who wish to perform Hajj & Umrah via draw cash from any of Meezan Bank’s
renowned agents on Bank’s panel. or 1Link member banks’ ATMs.
Customers have multiple Travel
Asaan payment options allowing
them to decide when and how they Mobile Banking App
want to pay off the plan. Alternatively, Designed for the customer on the go,
customers can also avail Mudarabah the App is available for download
based Labbaik Savings Asaan from Google Play and Apple App
Account in which customers can save Store. Compatible with all major
for the Hajj & Umrah of their parents, Android and iOS versions, the App
spouse, children or other family allows customers to check debit card
members on some future date.
Customers can also apply for Hajj discounts as well as to view account
through the Bank branches on the activity, pay bills, top-up mobile
Govt. Hajj Scheme as announced by phone credits, transfer funds and
the Government of Pakistan from time block / unblock cards in a fast,
to time. convenient and secure way.

Secure e-Commerce Payments Meezan Premium Banking
Meezan Debit Cards offer secure and Meezan Meezan Premium Banking is the Bank’s
seamless online shopping experience Secure Online Shariah-compliant priority banking
via Verified by Visa and Mastercard
Payment service developed to cater the banking
Secure Code service. This technology needs of high-net worth customers.
ensures online safety by authenticating Premium Banking customers enjoy
transactions through a unique code special privileges such as:
sent to customers’ registered mobile
number or email address; eliminating ■ Meezan Mastercard Platinum Debit
the need for Web Pay Session Card - a very prestigious card,
activation. offering discounts at selected retail
outlets and restaurants across
the country, along with higher
transactional, withdrawal and fund
transfer limits.
■ Access to selected Airport lounges
at Karachi, Lahore, Islamabad,
Fonepay Multan and Sialkot and at selected
Meezan Bank has partnered with airports abroad during international
Meezan
flights.
Mastercard and Fonepay to launch Fonepay
the latest award-winning innovation ■ Dedicated Premium Banking Centres
at Karachi, Lahore, Islamabad,
in payments based on QR technology.
Rawalpindi, Faisalabad and Sialkot.
Meezan Bank customers can now
simply scan the QR image displayed ■ Premium Phone Banking is a
dedicated Call Centre exclusively
at shops to make the payment at
for Premium Banking customers.
over 100,000 merchants in Pakistan.
■ Fee waivers on selected basic banking
transactions and ADC services.
Meezan ATM Network Meezan VISA Debit Card

Meezan Bank offers a nationwide Meezan VISA Debit Card provides
network of over 625 ATMs located convenience to customers to access
at its branches and at prominent their funds anytime and anywhere, at
off-site locations across the country. all outlets and ATMs displaying the
Meezan Bank ATMs offer funds VISA symbol. The new NFC based
transfer, bill payment, mutual funds payment capability on Meezan VISA
investment and redemption, instant Debit Card allows customers to pay
debit card activation, debit card PIN for any transaction on the go by just
generation and PIN change facilities tapping the card at the merchant
in addition to cash withdrawals. counters accepting NFC payments.
Moreover, EMV Chip ensures advanced
security available to counter skimming
frauds.
Internet Banking Meezan Mastercard Debit Card

Meezan Bank’s Internet Banking facility Meezan Mastercard Titanium Debit Mastercard
provides customers global access to Card is the first Titanium debit card
their account 24 hours a day, 7 days a
User Guide
launched in Pakistan. The debit card Terms and Conditions
week. The Internet Banking facility offers comes packed with benefits for the
a suite of features such as account frequent traveller offering free access
Utility Bill Payment
IBFT Postpaid
(Inter Bank Funds Transfer) Mobile Bill Payment
statement views, payment of utility bills to airport lounges across the Middle
with Quick Pay service, funds transfer East, coupled with a wide array of
facility, cheque status inquiry, complaint exclusive offers and discounts within
logging, cheque book requisition, pay Pakistan and worldwide. Moreover,
order request and stop payment Meezan Mastercard Platinum Debit
Card caters to exclusive needs of
Mini Statement
marking. Customers can also invest and

Prepaid Mobile Phone
Cash Withdrawal Airtime Purchase
redeem funds from Al-Meezan Mutual Premium Banking customers with even
Funds. more features and benefits.
111-331-331 & 111-331-332 www.meezanbank.com

Supplementary Debit Cards SMS Alerts
Meezan Bank Supplementary Debit Meezan Bank's SMS Alerts service Meezan
Cards allow the families of customers keeps customers informed about SMS Alerts
to share the convenience and activities in their accounts; enabling
independence of making day to day
payments. Supplementary Debit Card them to keep track of their financial
offers the same features and benefits transactions along with latest
as a primary card. A customer can avail account balance. Meezan Bank
a maximum of 5 supplementary cards. customers also get email alerts of
their transactions which is
particularly helpful for customers
travelling abroad. Corporate SMS
Alert service has also been
launched to meet the needs of
corporate clients.
Skim Guard Commercial Vehicles Ijarah

Meezan Bank has introduced an Meezan Commercial Vehicles – Ijarah
innovative mechanism by the name of offers financing facility for all the
‘Skimguard’ for the first time in Pakistan vehicles that can be used for
to reduce exposure to skimming
frauds. When a high value transaction commercial purposes. This includes
is initiated on Meezan Bank’s ATM, a financing to logistics, transportation,
passcode is sent via SMS and after distribution and oil marketing
entering the same on ATM, the companies etc. The facility ranges
transaction is completed successfully. from small truck, vans, coasters,
Skimguard service is applicable on all buses to heavy trucks, truck chassis,
ATM transactions including cash prime movers etc. This product also
withdrawal, IBFT (Meezan to Other provides customized financing plans
Bank Transfers) and 3PFT (Meezan to for specific SME and corporate
Meezan Transfers).
customers.
Meezan PayPak Debit Card Meezan Consumer Ease

PayPak is a domestic payment Durable Goods
scheme owned and operated by Meezan Consumer Ease – Durable
1Link Guarantee Ltd duly approved Goods Financing is first ever
by State Bank of Pakistan. Meezan Shariah-compliant limit based
PayPak Debit Card is a PIN based financing facility, which allows
card that ensures utmost security customers to purchase laptops,
not only at ATM machines for cash generators and various consumer
withdrawal but also at POS durable items such as LED TVs, air
terminals while shopping at all conditioners, washing machines,
merchant outlets across Pakistan. mobile phones etc. on easy and
affordable monthly installments. A
one-time limit approval makes the
process simple and hassle-free for the
customer, making him/her eligible for
multiple financing facilities for Riba-free
goods. The Consumer Ease products
are based on Shariah concept of
Musawamah, which is a general and
regular kind of sale.
SMS Banking Car Ijarah

Meezan SMS Banking is an Based on Ijarah principle, Car
interactive service that allows Ijarah is an auto finance facility. It is
customers to access their account a car rental agreement under which
on demand anytime, anywhere from the Bank purchases a new / used /
their mobile phone. imported car of the customer's
choice and rents it out for a period
of 1 to 7 years, agreed at the time of
the contract. Rental payments start
after one month delivery of vehicle
to the customer. The Bank bears
the WHT (Withholding Tax) amount.

delivers the commodity / goods on deferred basis. Upon
Bike Ijarah delivery, Bank sells the goods in the market.
Meezan Bike Ijarah is a
Shariah-compliant solution which is Tijarah
based on Ijarah principle, under This is a working capital solution especially for those
this facility, the Bank purchases the customers who sell their inventory on credit and require
bike and rents it out to the customer funds for operations during the credit period. In Tijarah,
for a period of 1 to 3 years, agreed the Bank purchases the finished goods from the customer
at the time of the contract. Rental and after taking the delivery, sells the goods in the market.
payments start after delivery of
vehicle to the customer. The facility Ijarah
includes full comprehensive Takaful Meezan Bank provides Ijarah based products to provide
cover as well. flexible solution for meeting long term financing
requirements of the customers. Ijarah technically means to
give something on rent. The Bank uses this product for
medium and long-term financing purposes where the
Easy Home Bank acquires the asset required by the customer and
Based on the principle of Diminishing then leases it to the customer for a fixed period. This
Musharakah, Easy Home is a product is used for the financing of fixed assets such as
Shariah-compliant home financing plant, machinery, generators, equipment, vehicles etc.
facility, in which a customer can buy Running Musharakah
or build a house, renovate an existing This is a Shirkatul-aqd based financing facility offered to
house or replace the conventional
the customers where the Bank participates in the
house loan with Islamic house
operating activities of the customer and shares profit and
finance. With flexible financing
tailored to support the customer's
loss as per the actual performance of the business. This
need, Meezan Easy Home provides product is also used as a viable financing solution for
one of the best home financing service industry and travel agents whose financing needs
solutions in the country with a are generally not addressed by other asset backed
hassle-free process and a quick products. This product is used to meet the working capital
turn-around time. requirement of the customer.
Diminishing Musharakah
This is a medium and long-term financing product, where
Financing Products the Bank and the customer jointly purchase an asset and
Meezan Bank offers a wide range of products to its create joint ownership in the asset. The Bank then leases
Corporate, Commercial and SME Customers to meet their its share in the asset to the customer while the customer
financial needs. Following is a list of the generic products purchases units of ownership in the asset from the Bank at
that are used to offer financing solutions: periodic intervals. Upon purchase of all the units, the
customer becomes the owner of the asset. This mode is
Murabaha used for financing of fixed assets such as land, factory,
Meezan Bank offers a convenient and easy-to-use solution building, machinery, equipment, vehicles etc.
for financing raw material and inventory requirements of
the customer through Islamic mode of Murabaha. Structured Finance Solutions
Murabaha is a sale transaction where the seller discloses In order to provide solutions to unique financing
the cost and profit to the buyer at the time of execution of requirements of the customers such as project financing,
sale. Murabaha is a short-term Islamic facility for meeting CAPEX and BMR requirements, short-term retail Sukuks
asset based working capital requirement of customers etc, Meezan Bank offers specialized hybrid solutions that
where instead of providing a loan, Meezan Bank sells the are specifically developed as per the special financing
required asset to the customer on spot or deferred basis. requirement of the customer.
Musawamah Shariah-compliant range of Trade Financing Solutions

Musawamah is a bargain sale in which the Bank does not Import Financing
disclose the cost and profit to the customer. Meezan Bank offers a comprehensive solution for all the
Istisna import related financing requirement of its customers.
Meezan Bank offers an Istisna based solution to finance Some of the major import financing products are as
complete working capital requirements of its customers. follows:
Istisna is a type of sale transaction where the buyer places Letter of Credit Services
an order with the seller to manufacture certain asset and In order to facilitate imports of customers, Meezan
the sale is completed upon delivery of the asset to the Bank offers letter of credit establishment services on
buyer. Under this facility, Meezan Bank provides funds to Wakalah basis at competitive rates and unmatched
customers for manufacturing certain assets for the Bank service quality.
and then, upon delivery, sells the assets in the market.
Short-term Import Financing
Commodity Salam Meezan Bank offers flexible and convenient import
This is a working capital financing solution whereby the financing facility on the basis of Musawamah /
Bank and customer enter into a sale contract in which sale Murabaha. If the customer wants to finance its letter of
price is paid by the Bank in advance and customer credit, the Bank appoints the customer as its agent to

import the goods and customer establishes the LC as Guarantee Services
an agent of the Bank. Upon receiving possession of In order to facilitate trade, Meezan Bank offers
the goods, the Bank sells the goods to the customer on Shariah-compliant guarantee facility to its customers
a deferred payment bases. where the Bank provides different types of payment
and performance guarantees on behalf of the
Finance against Imported Merchandize
customer.
Meezan Bank also offers finance against imported
merchandize facilities to its customers on the basis of
Musawamah / Murabaha. Under this facility, the Bank Meezan eBiz
appoints the customer as its agent to import the goods Meezan eBiz allows customers to
and the customer establishes the LC as an agent of the execute critical banking transactions
Bank. Upon receiving possession of the goods, the in real time over the internet while
Bank sells the goods to the customer on deferred maintaining the security of information exchanged over
payment basis and then keeps the same goods under this channel. With the help of Meezan eBiz, customers can
its pledge for securing the payment obligations of the view their account balances, account details, account
customer. statements as well as efficiently conduct their day-to-day
transactions such as fund transfers, IBFT, salary
Hedging Facilities
payments, bill payments, payment orders etc. via an
In order to hedge the risk of foreign currency price
automated, secure and versatile electronic processing
fluctuations, Meezan Bank offers a Shariah-compliant
platform.
hedging facility on the basis of Wa’ad.
Long-term Import Financing Meezan eBiz+
Meezan Bank offers long-term import finance facilities Meezan eBiz+ is a customized
on the basis of Ijarah or Diminishing Musharakah Payments & Cash Management
where the customer imports the asset either as the solution that allows corporate
One window solution for all your Cash Management needs
Bank’s agent (in case of Ijarah) or as the Bank’s customers to not only electronically manage their banking
partner (in case of Diminishing Musharakah). Upon relationship, but also reduce operational overhead by
receipt of the asset, the asset is leased to the customer outsourcing the management of collections and
for a specified period as per the rules of Ijarah. payments. Each installation is tailor-made to meet
customers’ specific requirements including Host to Host
Export Financing integration with customer ERP system. The functionalities
Meezan Bank also offers a full range product menu for available in addition to the features offered by eBiz+
exporters where all the requirements of the exporters can include:
be fulfilled under one roof in a convenient manner. Some of
the major facilities for exporters are as follows: ■ Managing collections through customized deposit slip,
Hedging Facilities e-collections, Payment Vouchers and Direct Debit and
In order to hedge the risk of foreign currency price Alternate Delivery Channels (ADC)
fluctuations, Meezan Bank offers Shariah-compliant ■ Managing payment electronically, such as funds
hedging facility on the basis of Wa’ad. transfer, IBFT, pay-order issuance, RTGS, corporate
cheques issuance as well as dividends payments
Salam & Murabaha as alternative to Export Bill ■ Advance level customized reports and e-alerts (email,
Discounting SMS, SFTP)
In order to provide financing for the immediate ■ Online real time account statement and MIS which
financing needs of the exporters, Meezan Bank offers can be downloaded into multiple formats for
a Shariah-compliant alternative to export bill auto-reconciliation
discounting where instead of providing loan against
the export order, Meezan Bank keeps the export bill as
security and extends a fresh Murabaha financing
facility to the customer or purchases FCY against Pak
rupees from the customer on Salam basis at spot rates
to cater to the financing requirements of the customer.
Islamic Export Refinance Scheme
Meezan Bank with the collaboration of State Bank of
Pakistan offers subsidized rate financing solutions
through modes of Murabaha, Istisna, Tijarah and
Running Musharkah under Islamic Export Refinance
Scheme.
Islamic Long-term Finance Facility
Meezan Bank with the collaboration of State Bank of
Pakistan provides subsidized rate long term financing
facilities through modes of Ijarah and Diminishing
Musharakah under Islamic Long Term Finance Facility.

EasyHome
Live your dreams with Meezan Bank's

Easy Financing Solutions
Meezan Easy Home offers a completely Meezan Car Ijarah, for new,
Shariah-compliant way to Buy or Build used & imported vehicle, is a
the house of your dreams. Also available Riba-free car financing solution,
for renovation of house or transfer of where you get luxury with
existing mortgage facility from any other economy and have the
bank to Meezan Bank. advantage of eased rentals.
MEEZAN EASY HOME MEEZAN CAR IJARAH

• Special rates for Chartered Accountants • Affordable Rental
• Flexible Payment Plan • Minimum 15% advance rent
• Maximum Financing against property value • Rental paid after delivery of vehicle
• Flexibility to make partial pre-payments • No upfront registration charges
• Affordable and competitive installments • Easy selection of financing tenure
with regularly reducing monthly rentals from 1 to 7 years
• Minimal Processing Fees
Follow us on
The Year in Review
Chairman’s Review 74
Directors’ Report to the Members 76
Directors’ Report to the Members (Urdu) 93
Annexure to the Directors’ Report 94
Statement of Value Added and Distributed 95
Remunerative Depositors’ Pool 96
Statement of Inventory 97
Statement of Financing Portfolio Income 97
Business and Operations Review 98
Marketing & Corporate Communication 120
Corporate Social Responsibility 122
Sustainability Report 125
Report of the Board Audit Committee 133
Shariah Supervisory Board Report 134
Shariah Supervisory Board Report (Urdu) 141
Statement of Sources and Uses
of Charity Fund 142
Review Report to the Members 143
Statement of Compliance with
Listed Companies Code of Corporate
Governance Regulations, 2017 144
Statement of Internal Controls 146
Notice of Annual General Meeting 147
Directors' Report to the Members
On behalf of the Board of Directors, we are pleased to in remittances and uninterrupted energy supplies to the
present the twenty-second Annual Report setting out the industrial sector.
detailed financial results of the Bank for the year ended
December 31, 2018. Notwithstanding these positive developments, significant
challenges remained on domestic and external fronts,
particularly the unfavorable balance of payment position.
Pressure on external account and a stronger dollar
resulted in a much-needed depreciation of 27% in
Pakistani Rupee against the dollar.
Rising oil prices at the start of the year resulted in core

inflation increasing to a four year high. This, along with the
pressure on the external account, led the SBP to increase
Target Rate by 425 basis points during the year bringing
the Target Rate to 10% in December 2018. Subsequently,
on January 31, 2019, the SBP, further increased the Target
Rate by 25 basis points, bringing it to 10.25%.
Fortunately declining oil prices have been a blessing for
the country and has helped ease the pressure on Balance
of Payments. At the same time, a number of steps taken by
the new Government to discourage imports and promote
exports are gradually having an impact and will help
manage the present predicament.
The Government’s monetary tightening policy such as PKR

devaluation, increase in Target Rate and import duties,
may slow down the GDP growth rates in the short-term but
we believe that these measures will yield positive results in
Best Bank in Pakistan – 2018 the longer term.
We are overjoyed and humbled that Alhamdulillah, Meezan
Bank has been recognized as the ‘Best Bank for 2018’ at Our Performance
the Pakistan Banking Awards - the most prestigious and By the Grace of Allah, Meezan Bank recorded excellent
definitive recognition of excellence in Pakistan’s banking all round results for the year ended December 31, 2018.
sector. This award has only been possible due to the The Bank posted Profit After Tax of Rs 8.96 billion, 42% up
efforts and cooperation of all stakeholders particularly our from Rs 6.3 billion in 2017 – the highest growth in the last
valued customers. It is the trust and confidence of our six years. The growth in profitability was primarily driven by
customers that has motivated us to pursue our Vision of an impressive growth in core banking income achieved
establishing “Islamic Banking as banking of first choice”. through strong balance sheet growth and Bank’s focus to
maintain a portfolio of high yield earning assets. The
The Pakistan Banking Awards are held by Institute of Earnings per Share – on enhanced share capital increased
Bankers Pakistan in collaboration with DAWN Media Group to Rs 7.67 from Rs 5.56 per share - an increase of 38%. The
and A.F.Ferguson & Co., Chartered Accountants, a book value per share increased to Rs 34.5 per share from
member firm of the PwC network, under the patronage of Rs 30.0 per share last year.
the State Bank of Pakistan. This is indeed a notable
achievement as it recognizes the significant contributions of
Meezan Bank to national development, particularly in Islamic Profit After Tax Rupees in Millions
Finance, and as an institution that manages its resources 8,962
effectively, including its employees, clients, franchise, 9,000
community and finances. Meezan Bank had previously 8,000
won the ‘Best Islamic Bank in Pakistan’ at the Pakistan
Banking Awards in 2016 and 2017. We will strive to live up 7,000
6,313
to the expectations of our valued customers as the Best
6,000
Bank in Pakistan. 5,562
5,023
5,000
Economic Overview 4,570
Pakistan’s economy performed modestly in 2018 with a 4,000
real GDP growth rate of 5.8% for the fiscal year 2017-18
which is the highest in the last five years. This achievement 3,000
is impressive especially because it has been accomplished in
2,000
the face of global head winds. Major impetus to growth came
from improved performance of services and agriculture 1,000
sectors. All major macroeconomic indicators showed
progress with healthy credit off take to the private sector, 0
2014 2015 2016 2017 2018
slowdown in imports and improvement in exports, increase

Key Business Results
2018 2017 Growth
Profit After Tax Rs 8.96 Billion Rs 6.31 Billion 42%
Financing Rs 513 Billion Rs 420 Billion 22%
Total Assets Rs 938 Billion Rs 789 Billion 19%
Deposits Rs 785 Billion Rs 667 Billion 18%
Sub-ordinated Sukuk (Additional Tier I and Tier II) Rs 14 Billion Rs 7 Billion 100%
Equity Rs 40.3 Billion Rs 35.1 Billion 15%
Trade Business (Imports and Exports) Rs 1,013 Billion Rs 710 Billion 43%
Branch Network 660 Branches 601 Branches 10%
Presence 181 Cities 159 Cities 14%
Financial Results Rs in Millions
PROFIT AND LOSS ACCOUNT 2018 2017

Profit / return earned on Islamic financing, investments and placements 48,625 36,427
Return on deposits and other dues expensed (20,457) (15,684)
Net spread 28,168 20,743
Fee and commission income 5,257 4,166
Foreign exchange income 1,318 1,211
Dividend income 567 1,177
Gain on securities - net 8 825
Other income 312 246
Total Income 35,630 28,368
Administrative and other expenses (19,670) (16,832)
Profit before provisions 15,960 11,536
Provisions and write offs - net (1,168) (1,284)
Profit before taxation 14,792 10,252
Taxation (5,830) (3,939)
Profit after tax 8,962 6,313
Net Spread The increase in fee and commission income was also duly
The return on financings, investments and placements supported by a strong growth of 39% and 25%
increased from Rs 36.4 billion in 2017 to Rs 48.6 billion in respectively in debit card related fee and branch banking
2018, an increase of 33%, mainly due to the Bank’s continued income. Home remittance related fee grew by a healthy
focus to increase volume of high yield earning assets 52% despite the stiff competition and stringent regulatory
portfolio and its re-pricing pursuant to increase in Target requirements.
Rate. On liability side, return on deposits and other dues
expensed increased from Rs 15.7 billion in 2017 to Rs 20.5 Improvement in Income Efficiency Ratio
billion in 2018 – an increase of 30% contributed by higher Although administrative and other operating expenses
deposit volume and increase in depositors’ profit rates. increased to Rs 19.7 billion from Rs 16.8 billion primarily
due to rising inflation, rupee devaluation and increase in
Trade (import & export) Business Volume Crossed a staff expenses, rent and costs associated with new
Trillion Rupee Landmark branches, the rise in expenses is sufficiently absorbed by
Another landmark achievement during the year was the the growth in the Bank’s income resulting in improvement
increase in Trade volume to Rs 1 trillion – an impressive in income efficiency ratio to 55% from 59% last year.
growth of 43% over the previous year. This achievement
was made possible due to the efficient handling of import and Financing Crossed Half a Trillion Rupee Landmark
export transactions supported by a comprehensive network A significant achievement during the year was the increase
of over 650 world-class correspondent banking relationships in the financing portfolio of the Bank that crossed half a
all over the globe. trillion and reached Rs 513 billion from Rs 420 billion in 2017
– an impressive growth of 22%. The Advance to Deposits
Growth in Fee and Commission Income Ratio (ADR) of the Bank stood at 65%, as compared to 63%
In line with the increase in the Bank’s Trade Finance business, in 2017. The focus remains on building a high quality
the fee and commission income of the Bank increased to Rs 5.3 diversified financing portfolio targeting top notch
billion from Rs 4.2 billion in 2017 – an impressive growth of 26%. corporate, commercial and consumer clients.

Financing Rupees in Millions issue of GoP Ijarah Sukuk since June 2017. To keep the
existing level of SLR eligible securities intact while
540,000
512,564 accounting for the maturity of GOP Ijarah Sukuk 16, the
480,000 SBP conducted its Open Market Operation (OMO) using
420,000
420,029 Bai-Muajjal Structure to manage the liquidity of Islamic
Banks.
360,000
311,530
300,000 Further, we understand that the Ministry of Power is
planning to issue Energy Sukuk guaranteed by the
240,000
207,569 Government of Pakistan which will partially address the
175,712
180,000 liquidity deployment challenge being faced by the Islamic
120,000
Banking Industry. We are hopeful that with the efforts of
State Bank of Pakistan and the Ministry of Finance, there
60,000 will be new Sovereign Sukuk issues during 2019
0 Insha’Allah.
2014 2015 2016 2017 2018
Deposits Grew By an Impressive 18% against Banking

Corporate Financing Industry Average of 8%
The Bank’s corporate financing portfolio serves multinational On liability side, the Bank’s deposit portfolio increased by
companies, large local corporate groups and public sector Rs 118 billion or 18% during the year to close at Rs 785
entities. Out of the total increase of Rs 93 billion in the billion from Rs 667 billion in 2017. The Bank’s deposits
Banks total financing portfolio in 2018, 47% was contributed grew by 18% i.e. more than double the growth in deposits
by the Corporate segment. Superior relationship of Banking Industry which grew by 8%. The Bank not only
management and an extensive product range, supported successfully expanded its deposit base but also
by an active Investment Banking team that focuses on maintained an optimal cost of funds through strong
Debt Syndications and Project Finance, has been relationship management and better customer experience.
instrumental in achieving this growth.
Deposits Rupees in Millions
SME & Commercial Financing
785,477
Meezan Bank recognizes the importance of the Small and 800,000
Medium Scale Enterprise sector as well as the Middle
market segment referred to as the Commercial portfolio 700,000
667,181
(referred to as “SME & Commercial”). The Bank focused on
capacity building in this segment with the help of the 600,000
559,398
International Finance Corporation (IFC is a subsidiary of
the World Bank). Excellent portfolio growth was achieved 500,000 468,281
with the total SME & Commercial financing portfolio
increasing by 44% from Rs 70 billion to Rs 101 billion 400,000
378,744
during the year. This segment also had a significant
contribution to the total trade business of the Bank with a 300,000
share of 41% of the total trade business handled by the
Bank. 200,000
Consumer Financing 100,000

The Bank’s Consumer segment offers car leasing (Car
Ijarah), home mortgage (Easy Home), consumer durable 0
financing (Consumer Ease) and commercial vehicle 2014 2015 2016 2017 2018
financing. The total Consumer Financing portfolio grew by
an impressive 41% during the year. You will be glad to know that the average current account
deposits of your Bank grew by 24%. The average current
Asset Quality account mix in the total deposits of the Bank improved by
The Bank increased its financing exposure in all sectors 1% year on year. The Bank maintains a strong position in
while simultaneously maintaining quality of its portfolio and the Banking Industry with a share of deposits of 5.9% as
ensuring all the risk parameters are met. It is pertinent to compared to 5.4% in 2017. The Bank remains committed to
mention that the Bank’s financing portfolio is growing continuously raise service quality standards and set new
remarkably every year without compromising on the quality benchmarks in customer care to ensure service delivery
of assets. The Bank has one of the lowest non-performing across all channels.
financing ratio in the Banking Industry of 1.3%, down from
1.5% in 2017 and compared to an average of 8% for the Effective from July 01, 2018, the SBP introduced Deposit
Banking Industry as a whole - a testimony to the stringent Protection Mechanism whereby all scheduled banks are
risk acceptance parameters of the Bank. The Bank maintains required to pay annual premium calculated at 0.16% of their
a comfortable level of provisions against its non-performing respective “aggregate eligible deposits”. As a result, the
financings with coverage ratio of 139%. Bank has recognised and paid a charge of Rs 434 million
for the half year period from July 2018 to December 2018.
Investments
The investments portfolio of the Bank closed at Rs 124 Branch Expansion Strategy – An Investment in Future
billion as compared to Rs 119 billion in 2017. Liquidity During the year, the Bank further expanded its foot prints
management remained a key challenge for Islamic Banking across the country and opened 59 new branches bringing
Industry of Pakistan as there are limited investment the total number of branches to 660 in 181 cities (2017:
avenues despite sufficient liquidity. There has been no new 601 Branches in 159 cities). The extensive branch network

of the Bank provides excellent client coverage throughout Share of Meezan Bank in
the country and has contributed to the consistent growth of Islamic Banking Industry - Based on deposits
the Bank. This ‘brick & mortar’ network is strongly
supplemented by the comprehensive array of digital 26%
35%
services, including Internet Banking, Mobile App and other
Alternate Distribution Channels, thereby ensuring
customers enjoy a seamless and efficient banking
experience. We believe that Pakistan has a significant
growth potential in retail banking and with an extended and
well diversified geographical outreach, the Bank is Meezan Bank
well-positioned to cater the banking needs of the masses. Islamic Windows of
39% Conventional Banks
Other Islamic Banks
Branch Network
Dividend per share
700
660 The Board has recommended the final cash dividend of
Rs 2 per share (20%) for the year 2018 bringing the total
601
600 payout for the year to Rs 3.5 per share (35%) as Rupee 1.5
571
551 per share i.e. 15% interim cash dividend was paid
alongwith issuance of 10% Bonus Shares during the year.
500
The Bank has maintained its unbroken payout record since
428 the date of listing on the Stock Exchange.
400
Upgraded Credit Rating
You will be happy to know that the JCR-VIS Credit Rating
300
Company Limited, an affiliate of Japan Credit Rating
Agency, Japan has upgraded your Bank’s credit rating as
200 follows:
Rating Type Previous Credit Rating Upgraded Credit Rating
100
Entity Long-term AA (Double A) AA+ (Double A Plus)
Entity Short-term A1+ (A One Plus) A1+ (A One Plus)
-
2014 2015 2016 2017 2018
Subordinated Tier II Sukuk AA- (Double A Minus) AA (Double A)
Additional Tier I Sukuk Not Applicable AA- (Double A Minus)
Issue of Additional Tier I Capital and Capital Adequacy Ratio
Another important achievement during the year was the
successful issuance of Additional Tier I capital of Rs 7 The JCR-VIS has maintained the Bank’s short term rating at
billion, in form of perpetual, unsecured and sub-ordinated A1+ (A One Plus) with stable outlook which is the highest
Sukuk that further strengthened the Bank’s Capital standard in short term rating. The assigned ratings
Adequacy Ratio and supported the growth strategy of the indicate sound performance indicators of the Bank.
Bank. The Bank initially planned the issue size of Rs 5
billion however as the issue received an overwhelming Corporate Awards and Recognitions
response from the investors, the Bank increased the issue Meezan Bank has a history of achieving exemplary
size to Rs 7 billion. The Sukuk has been rated AA- (Double achievements and receiving awards at national and
A minus), by JCR-VIS Credit Rating Company Limited, an international level. These accolades recognize the degree
affiliate of Japan Credit Agency, Japan. of success enjoyed by Pakistan’s first and the largest
dedicated Islamic Bank and one of the fastest growing
As a result, the Bank’s CAR now stands at 14.55% - well
institutions in the country. Meezan Bank won the following
above the minimum mandatory level of 11.90% for the year
2018 and this will support the future growth plans of the prestigious awards during the year:
Bank. The Bank is a well-capitalized institution and
maintains a healthy CAR through strong profitability, Tier I Pakistan Banking Awards
and Tier II capital issues and effective management of ■ Best Bank 2018
its risk weighted assets (RWAs).
International Finance Awards
Islamic Banking Industry ■ Most Innovative Islamic Bank, Pakistan
Islamic Banking has taken strong roots in Pakistan with
Meezan Bank as a market leader offering a complete range Islamic Finance News (IFN)
of Islamic banking products and services. Islamic Banking ■ Best Islamic Bank in Pakistan
Industry deposit accounts for almost 15% of the total Banking ■ Best Islamic Bank for Treasury Management
Industry deposits. The Bank’s market share amongst the – Global Award
full-fledged dedicated Islamic Banks operating in Pakistan
is approximately 57%. Meezan’s market share for the CFA Society of Pakistan
Islamic Banking Industry as a whole including Islamic ■ Islamic Bank of the Year
Banking windows of conventional banks in Pakistan is 35%.
Global Finance
■ Best Islamic Financial Institution in Pakistan
■ The Innovators – ‘The Innovator 2018’ for Masterpass
QR Payments through FonePay

ICAP & ICMAP customers; however customers have to contribute towards a
■ Best Corporate Reports Award (Securing Third position) charity account in case of late payment to disincentivise
– Banking Sector misuse of the system. Also, if during a Shariah-audit, a
transaction is identified where the process defined to ensure
Asset Triple A Islamic Finance Awards – Hong Kong
Shariah-compliance is not followed, income of such a
■ Best Islamic Bank in Pakistan
■ Best Islamic Trade Finance Bank in Pakistan
transaction is transferred to charity account. This practice
■ Best Islamic Retail Bank in Pakistan differentiates Meezan Bank from conventional banks. During
■ Best Islamic Investment Bank in Pakistan 2018, a total of Rs 38 million was paid from the charity
■ Sukuk Advisor of the Year – Pakistan account on behalf of the customers and to purify the
non-compliant income to different charitable organization
Asset Triple A Asia Infrastructure Awards and NGOs, with a major portion given to Ihsan Trust, an
■ Renewable Energy Deal of the Year - Hydropower independent trust formed on the directives of Meezan Bank’s
– Pakistan Shariah Board to contribute towards education and
■ Oil and Gas Deal of the Year – Pakistan
healthcare-related initiatives.
Asian Banking and Finance Corporate & Investment
In addition to the above, a significant contribution made to
Banking Awards
■ Syndicated Loan of the Year, Pakistan
the national exchequer this year was a donation of Rs 15
million made jointly by the Bank and its staff to The Supreme
PakWheels.com – People’s Choice Awards Court of Pakistan and the Prime Minister of Pakistan Diamer –
■ Most Popular Bank in Pakistan’s Islamic Auto Financing Bhasha and Mohmand Dams Fund (Dam Fund) for the
sector construction of the dams, affirming the Bank’s commitment to
this important national cause. The Bank also continues to
The Banker collect donations and contributions for the Dam Fund through
■ Islamic Bank of the Year, Pakistan its extensive nationwide network of 660 branches as well as
its ATMs, Internet Banking and Mobile Banking channels, in
Global Islamic Finance Awards accordance with the directives of the State Bank of Pakistan.
■ Shariah Authenticity Award
The amount of donation collected for the Dam Fund so far
■ Shariah Auditor of the Year
amounts to Rs 464 million.
Mastercard MENA Acquirer Forum
■ Spearheading Acceptance Location Growth The disclosure required under Company’s Corporate Social
Responsibility (General Order, 2009) has been duly made in
Islamic Finance Forum of South Asia (IFFSA) Awards the Annual Report.
■ Gold Award For Islamic Finance Education Provider
■ Gold Award For Islamic Finance Advisory Services Corporate and Financial Reporting Framework
Provider The Board of Directors is fully cognizant of its responsibility
■ Gold Award For Islamic Finance Deal of the Year under the Listed Companies (Code of Corporate
■ Gold Award For Islamic Investment Bank of the Year Governance) Regulations, 2017 issued by the Securities
■ Silver Award For Bank of the Year
and Exchange Commission of Pakistan. The following
statements are a manifestation of its commitment towards
Employers Federation of Pakistan (EFP)
high standards of Corporate Governance and continuous
■ Recognition Award - Best HRM Practices
■ Recognition Award - Employer of the Year
organizational improvement.
Corporate Social Responsibility & Charity Funds 1. The financial statements prepared by the Management
Management of the Bank present fairly its state of affairs, the results
Charity is one of the most important pillars of a healthy of its operations, cash flow and changes in equity.
society. Keeping this and the Islamic principles of Ihsan in
2. Proper books of account of the Bank have been maintained.
mind, Meezan Bank recognizes its responsibility as a
conscientious corporate institution and integrates Corporate 3. Appropriate accounting policies have been
Social Responsibility (CSR) as an integral part of its value consistently applied in preparation of financial
system. As a socially responsible organization, the Bank statements except for the change in accounting policy,
recognizes that it is part of the community at large and that duly disclosed in notes to the financial statements. The
there is a strong need to contribute to the society and support accounting estimates are based on reasonable and
those in need, be it on financial or non-financial basis. The prudent judgment.
Bank remains committed to its objective of paying back to the
society - both directly and indirectly, and in this regard have 4. International Financial Reporting Standards as
contributed through various ways and means. applicable in Pakistan have been followed in
preparation of financial statements and departure from
Since the Bank operates strictly on Shariah approved these has been adequately disclosed, if any.
principles, there are no late payment penalties taken from the

5. The system of internal controls is sound in design and line of defense and are primarily responsible for managing
has been effectively implemented and monitored. The risks on day-to-day basis. Risk management and other
ultimate responsibility of the effectiveness of internal control functions being the second line of defense are
controls system and its monitoring lies with the Board. responsible for assisting business lines for designing and
An Audit Committee has been formed for this purpose implementing adequate controls to manage risks within the
that meets periodically and independently throughout limits prescribed by regulators and set under risk appetite
the year with the management and also the internal framework. The internal audit & business review function
and external auditors to discuss the effectiveness of provides independent assurance on adequacy of Bank’s
internal controls system and other financial reporting internal controls and risk management environment.
matters. In addition, there are financial forecasts and
budgetary control procedures in place, which are Risk Management activities are performed at strategic,
reviewed and monitored throughout the year to macro and micro levels. The overall responsibility for risk
indicate and evaluate variances from the budget. management rests with the Board of Directors and it has
constituted Board Risk Management Committee comprising
6. There are no doubts upon the Bank’s ability to continue of Board members with well-defined terms of reference. Over
as a going concern, Insha’Allah. the period of time, the scope of Risk Management Group
(RMG) has been continuously broadened mainly focusing on
7. The directors of the Bank are in compliance with establishing & improving upon risk management policies and
respect to training requirements. procedures, limit structuring and strengthening systems and
controls. It also includes risk assessment and measuring
8. The appointment of the Chairman and other members
techniques, reporting of risk profile at appropriate level,
of the Board and terms of their appointment along with
generating early warning signals, suggesting remedial
the remuneration policy adopted are in the best interests
measures and enhancing level of awareness about risk
of the Company as well as in line with the best practices.
management principles and practices all across the Bank.
9. Key operating and financial data for the last six years in These measures are aligned with applicable Shariah
summarized form, categories and pattern of guidelines, regulatory instructions including but not limited to
shareholding are annexed to the report. Basel accord, best industry practices and Bank’s growth
strategy.
10. The value of investments of the Bank’s recognized
Provident Fund and Gratuity Fund as at December 31, Various management level committees comprising of
2018 are as under: members with relevant experience and expertise perform
their functions as per their approved mandate so as to ensure
- Staff Provident Fund Rs 2,661 million that risk exposures are within risk appetite of the Bank while
- Staff Gratuity Fund Rs 1,063 million providing roadmap to achieve strategic and business goals.
The management committees include:
11. The purchase and sale of shares by the Directors,
Chief Executive, Chief Financial Officer, Head of 1. Credit Risk Management Committee (CRMC)
Internal Audit and Company Secretary during the year 2. Asset Liability Management Committee (ALCO)
and pattern of shareholding is included in the report. 3. Compliance & Operational Risk Management
Committee (CORMC)
Compliance with Listed Companies
(Code of Corporate Governance) Regulations, 2017 The CRMC ensures that credit risk activities of the Bank fall
The requirements of the Code of Corporate Governance set within the ambit of approved policies, regulatory
out by the Securities and Exchange Commission of Pakistan requirements, risk appetite thresholds and industry norms.
in the Listed Companies (Code of Corporate Governance) Credit Committee, the sub-committee of CRMC is the highest
Regulations, 2017 relevant for the year ended December 31, level body for approval of financing transactions. ALCO
2018 have been adopted by the Bank. A statement to this reviews market, liquidity and country risk exposures, assets
effect is annexed with the report. and liabilities mix and maturity profile, sets pricing and takes
decisions for sound liquidity management. The Bank has
Risk Management Framework established the Compliance and Operational Risk
Risk Management Framework in Meezan Bank comprises Management Committee (CORMC) focusing on issues
governance and organizational structure, policy and arising from compliance risk along with operational risk and
procedural framework, risk assessment techniques, tools, control issues. The Committee facilitates in implementation of
systems, early warning indicators, reporting and escalation compliance program and oversees money laundering and
mechanism aligned with the Bank’s strategic directions and financing terrorism risk.
business goals set by the Board of Directors and
commensurate with size and scope of the Bank. An entity Credit risk is being managed through comprehensive
wide ‘Three Lines of Defense” model for risk management financing policies and detailed procedures, well-defined
with clearly defined roles and responsibilities is at the core of credit approval processes, prudently established financing
Bank’s operations. Business lines / front offices serve as first approval delegation authorities, balanced risk-reward trade

off, limit and products structuring, concentration limits, control self-assessment, enhanced coverage of key risk
adequate collateral coverage, documentation, legal and indicators and improvements in processes through risk
hindsight reviews and reporting structure. The Bank’s identification, mitigates and awareness sessions reflects
strategy is to ensure financing growth while focusing on upon continuous improvements in operational risk
comprehensive risk analysis and portfolio diversification to management framework. The Bank monitors capital
mitigate risks and improved turnaround time to fulfill needs of adequacy position of the Bank on proactive basis and
customers. Market risk is managed through the Board strategizes accordingly. Coverage of business continuity
approved market risk policy; regulatory & internally approved plans has been further strengthened at branch level by
market risk limits, counterparty and dealer limits and regular conducting evacuation drills. Wide range of system and
review and monitoring of the investment portfolio by the customized reports for all types of risk exposures, escalation
Bank’s ALCO. The Bank uses Value at Risk (VaR) techniques matrices, effective approval processes, awareness
for market risk measurement. Regulatory reserve programs and close collaboration among various functions
requirements, liquidity mismatches, deposit mix and and growing understanding to view risk profile at enterprise
concentration, and other tools are used to gauge the liquidity level and risk modules will further strengthen the role of risk
management of the Bank on daily basis. Further, Regulatory management and other control functions to manage risks on
Liquidity framework under Basel is in place that also proactive basis.
strengthens the liquidity risk framework. Country risk
exposures are managed through policy parameters and Statement of Internal Controls
limits establishment. Operational risk is managed through The Board is pleased to endorse the Statement made by
standing operating procedures, deployment of necessary the Management relating to internal controls. The
human resources, training and development, segregation of Management’s statement on internal controls is included
duties, strengthening maker, and checker and approving in the Annual Report.
mechanism, risk indicators, system-based reports, business
continuity and disaster recovery plans. Pattern of Shareholding
The pattern of Shareholding as at December 31, 2018 is
Under Risk Management Group, capacity building both in annexed with the report.
terms of hiring of additional fresh and experienced human
resources, participation of staff in variety of training and Directors
development programs and growing focus of getting Following the expiry of the three year term of the previous
certifications in related areas leads to enrichment of the Board of Directors, an election of Directors was held on
expertise and implementation of best practices. Full-fledged November 17, 2018 and a new Board was constituted.
credit risk function caters corporate, investment banking, The Board would like to thank and wishes to place on
commercial & SME, agriculture and consumer business record its sincere appreciation for the valuable services
segments. The coverage of RMG in credit assessment of rendered by the outgoing directors Mr. Mohammad Abdul
individual and group customers has been enhanced through Aleem, Mr. Muhammad Zarrug Rajab, and Mr. Talal S.A.
four-eye principle, limits structuring and deployment of risk Al-Shehab. The Board congratulates all the elected
officers in the field. The Bank has successfully implemented directors. The new Board consists of eleven directors,
automated financing approval system for corporate and including CEO as a deemed director. The Bank has
commercial customers that was further streamlined the already submitted applications for the Fit and Proper Test
approval process. The Bank conducts regulatory & internal of the Directors to the SBP which is in process of reviewing
stress testing for credit, market, liquidity and operational risk the same. Composition of the Board is as follows:
by applying various shocks under different scenarios.
S. No Names
Enterprise Risk Management (ERM) setup is in place under
RMG catering market, liquidity, financial institutions,
operational, business continuity risks, Basel implementation, 1. Mr. Riyadh S.A.A. Edrees - Chairman
hindsight reviews of financing cases, their monitoring and
2. Mr. Faisal A.A.A. Al-Nassar - Vice Chairman
risks related policy framework. The role of ERM has been
closely integrated into formulating capital strategy of the 3. Mr. Bader H.A.M.A. Al-Rabiah
Bank. The Board has established a comprehensive Recovery
Plan dealing with various crisis scenarios along with trigger 4. Mr. Mansur Khan
events and appropriate remedial action plans. In order to
further strengthen the scope of risk management, the Bank 5. Mr. Alaa A. Al-Sarawi
recognizes the importance of environmental, sustainability,
6. Mr. Saad Fazil Abbasi
compliance and information security risks as distinct types of
risks and continuously improves upon to cater these risks. 7. Mr. Mohamed Guermazi
Periodic review and update of contingency funding plan
helps the Bank to assess its liquidity position and prospective 8. Ms. Laila M. S. A. S. A. S. Abbas (Resigned on February 19, 2019)
under stressed environment. The role of market risk function
in monitoring of treasury activities has been strengthened 9. Mr. Noorur Rahman Abid
with limits structuring, robust monitoring mechanism,
reporting and system improvements. Operational losses 10. Mr. Ariful Islam - Deputy CEO
reporting, initiatives to mitigate incidents of fraud and
11. Mr. Irfan Siddiqui - President & CEO
forgeries, improvements in managing security risk, risk and

The record of the Board meetings held during the year and it reviews the effectiveness of its performance periodically.
attended by the Directors is as follows: To that end, all individual Board members answer a
comprehensive questionnaire focused on evaluating, from
Name of Directors No. of No. of various angles, whether the Board has discharged its
Meetings Meetings duties diligently and with foresight. A committee of
held Attended Directors is designated to collate individual responses and
Mr. Riyadh S.A.A. Edrees - Chairman 4 4 present them to the Board for deliberation and discussion.
During the self-evaluation exercise, the Board evaluates
Mr. Faisal A.A.A. Al - Nassar - Vice Chairman 4 4 itself from the following perspectives:
Mr. Bader H.A.M.A. Al-Rabiah 4 4

■ Evaluation of the overall Board
■ Evaluation of the Chairperson
Mr. Mansur Khan 4 4
■ Evaluation of Individual Directors
Mr. Alaa A. Al - Sarawi 4 4 ■ Evaluation of Independent Directors
■ Evaluation of Board Committees
Mr. Saad Fazil Abbasi* 3 - ■ Evaluation of the CEO
Mr. Noorur Rahman Abid 4 4 This exercise in critical self-assessment allows the Board
to evaluate its performance and overall effectiveness in
Mr. Muhammad Zarrug Rajab** 4 3
setting strategies, devising control processes, reading
Mr. Mohammad Abdul Aleem** 4 4
market trends by monitoring micro and macroeconomic
factors, and responding to adverse unforeseen situations
Mr. Talal S.A. Al-Shehab** 4 4 to further the cause of a learning organization. This
process also ensures that the Board is constantly growing
Mr. Ariful Islam - Deputy CEO 4 4 intellectually and the responsibility of steering the Bank to
new heights of success is discharged effectively and
Mr. Irfan Siddiqui - President & CEO 4 4 efficiently.
*Mr. Saad Fazil Abbasi was appointed with effect from February 28, Auditors
2018. The present auditors, EY Ford Rhodes, Chartered
**Mr. Mohammad Abdul Aleem, Mr. Muhammad Zarrug Rajab, and Accountants retire and being eligible offer themselves for
Mr. Talal S.A. Al-Shehab retired during the year. reappointment. As required under Listed Companies (Code
of Corporate Governance) Regulations, 2017 the Board and
The name of the members and their attendance in meetings the Audit Committee has recommended the appointment of
of the Committees formed by the Board held during the year EY Ford Rhodes, Chartered Accountants as auditors of the
is included in the Annual Report. Bank for the year ending December 31, 2019.
The remuneration of the Board members is recommended by Al Meezan Investment Management Limited – Subsidiary
Board and approved by the shareholders in General We acknowledge the excellent performance of our
meeting. However, in accordance with the Code of subsidiary, Al Meezan Investment Management Limited
Corporate Governance, it is ensured that no Director takes (Al Meezan). Al Meezan is the leading asset management
part in deciding his own remuneration. The Bank does not company in Pakistan with a track record of over 23 years
pay remuneration to non-executive directors except fee for of fund management operations and has a distinction of
attending the meetings. In order to retain the best talent, the having exclusive mandate of providing Shariah-compliant
Bank’s remuneration policies are structured in line with investments solutions to its investors. The Company offers
prevailing industry trends and business practices. For a comprehensive product suite of 16 mutual funds and
information on remuneration of Directors and CEO in 2018, multiple investment plans spanning from basic equity and
please refer notes to the Financial Statements. income funds to commodity funds, dedicated equity fund
and aggressive asset allocation funds. The company also
The Bank has a policy in place for dealing with conflicts of manages the largest Voluntary Pension Fund in Pakistan.
interest relating to members of the Board. Under this policy, With a healthy investor base of over 91,600 customers Al
any Director who has a business interest in a matter being Meezan is the largest Shariah compliant asset
presented at a Board meeting does not participate in neither management company of the country with Assets under
the discussion nor the decision on that matter. The policy is Management (AUMs) crossing Rs 87.9 Billion mark in
applied consistently and there was no breach of this policy December 2018. Its AUMs represent around 15% of the
during the year. total mutual funds industry and 43% of the Shariah
compliant mutual funds industry. The Company is also
Performance evaluation Mechanism for the Board increasing its presence and has now 23 branches across
The Board of Directors and its sub committees are Pakistan, with 6 of them were opened this year.
competent and experienced, representing diversified
educational and vocational backgrounds which are Future Outlook and Strategy
invaluable in determining the overall direction of the The near term challenges to Pakistan’s economy continue
organization. The Board of Directors is keen to ensure that to persist with the rising inflation, an elevated fiscal deficit

and low foreign exchange reserves. The recent decline in diversified customer base, for which we remain indebted
international oil prices would play a positive role in slowing to them. We sincerely thank each one of our team
down the current inflationary trajectory and will instill members for their hard work and commitment. May Allah
confidence in the foreign exchange market. Almighty bestow His blessings on our entire team and their
families.
Our focus will be on maximizing our franchise value by
accelerating the growth momentum and ensuring access The Board would like to express its sincere thanks and
to financial services to a wider population through our vast gratitude to the State Bank of Pakistan, the Ministry of
branch network well distributed across urban and rural Finance, the Securities and Exchange Commission of
areas of the country. Active acquisition of new to bank Pakistan and our Shariah Supervisory Board for their
customers will be a key area of focus to further enhance continuous commitment to establish a viable Islamic
our existing customer base while simultaneously financial system in the country. We would also like to
improving our deposit mix. Our financing decisions shall congratulate the State Bank of Pakistan for being
continue to be based on maintaining asset quality and recognized as the ‘Best Central Bank in Promoting Islamic
maximizing yields. Finance’ by Islamic Finance News – Malaysia. We are
hopeful that with the continued efforts of the Ministry of
The Bank remains committed to contribute to the country’s Finance, SBP’s Islamic Banking Department and
development projects and working with large corporates Implementation Committee for promotion of Islamic
for their funding requirements. Mainly, we plan to increase Banking, there will be more Sukuk issues in the future.
our exposure in SME sector which has scope for
substantial growth. The Bank has already engaged IFC We would also like to thank our Board members,
advisory services to further penetrate in the SME segment. shareholders, holders of Additional Tier I Sukuk and
subordinated Tier II Sukuk for their continued support and
Despite the challenging external environment, the Bank the members of the Shariah Supervisory Board for their
intends to accelerate its branch expansion strategy and unrelenting efforts towards establishing Meezan Bank as
will add more than hundred branches during the next year the premier Islamic bank. Most importantly, we are
to further increase its geographical presence across the thankful to Allah Almighty for his continued blessings on
country. The Bank’s priority is to ensure that Islamic our Bank which has enabled us to achieve this incredible
banking products and services are made available across performance in a very short span of time and we pray that He
the length and breadth of Pakistan through an extensive gives us more strength and wisdom to further expand our
branch network duly supported by new technologies that vision of making Islamic banking as banking of first choice.
is critical for effective market penetration.
We will continue to invest substantially in technology to On behalf of the Board.

further improve efficiency and productivity and enhance
security of our banking transactions and customer data.
Culture is an important element of value system of the

Bank. The Bank believes in building a professionally
competent workforce that delivers a world-class banking
experience to customers. We continue to invest in our
human resources by providing them learning and Riyadh S.A.A. Edrees Irfan Siddiqui
development opportunities focused on capacity building of Chairman President & CEO
our resources and preparing them for future leadership roles.
Karachi:
Islamic banking has a good future in Pakistan and its share February 21, 2019
in the country’s Banking Industry is continuously rising. We
believe that a robust and viable Islamic Banking Industry
will play a critical role in increasing the savings rate in the
country.
Meezan Bank remains committed to its Vision to ‘establish

Islamic banking as banking of first choice’ and will
continue to play its pioneering role in Islamic banking to
contribute to the growth of Islamic banking in Pakistan.
The Board is confident that the Bank will Insha’Allah
continue to play its leadership role in evolving Islamic
Banking Industry in Pakistan.
Acknowledgement
The landmark achievements of Meezan Bank would not
have been possible without the proactive support of our

Annexure to the Directors’ Report
For the year ended December 31, 2018
The purchase and sale of shares by the Directors, Chief Executive, Chief Financial Officer (CFO) and Company Secretary,
their spouses and minor children during the year are given below:
Number of Number of Number of Bonus Right Shares Number of

Shares as at Shares Shares sold Shares alloted Subscribed Shares as at
Jan. 01, purchased during during December. 31,
2018 during the year the year the year 2018
NAME OF DIRECTORS
Mr. Mohammad Abdul Aleem* 195,384 - - 19,538 - 214,922
Mr. Noorur Rahman Abid 3,029,143 - - 302,914 - 3,332,057
Ms. Laila M.S.A.S.A.S. Abbas** - 501 - - - 501
Mr. Irfan Siddiqui 3,411,150 - - 341,114 - 3,752,264
Mr. Ariful Islam 1,904,176 - - 190,417 - 2,094,593
CHIEF FINANCIAL OFFICER

Mr. Shabbir Hamza Khandwala 587,378 - - 58,737 - 646,115
HEAD OF INTERNAL AUDIT

Mr. Ebrahim Yakoob - - - - - -
COMPANY SECRETARY
Mr. Muhammad Sohail Khan 11,286 - - 1,128 - 12,414
* Mr. Mohammad Abdul Aleem retired on November 17, 2018.

** Ms. Laila M.S.A.S.A.S. Abbas resigned on February 19, 2019.

Statement of Value Added
and Distributed
2018 2017
% %
Rupees in ‘000 Rupees in ‘000
Value Added
Profit / return on Islamic financings, investments

and placements - net of provision 47,456,407 100.0% 35,143,606 97.1%
Fee and commission income 5,257,170 11.1% 4,165,971 11.5%
Dividend income 567,429 1.2% 1,176,517 3.2%
Foreign exchange income 1,318,460 2.8% 1,210,827 3.3%
Gain on securities and other income 319,444 0.7% 1,070,967 3%

54,918,910 42,767,888
Operating and other expenses excluding salaries,
depreciation, amortisation and workers welfare fund (7,478,953) (15.8%) (6,563,649) (18.1%)
47,439,957 100% 36,204,239 100%
Value allocated as follows:
To Depositors / Financial Institutions

Profit on deposits and other dues expensed 20,456,948 43% 15,683,700 43%
To Employees
Salaries, allowances & other benefits 10,092,557 21% 8,391,105 23%
To Shareholders
Cash Dividend 2,922,981 6% 3,008,213 8%
Bonus Shares 1,062,902 2% - -
3,985,883 8% 3,008,213 8%
To Government
Workers Welfare Fund 363,001 1% 241,377 1%
Income tax 5,830,206 12% 3,939,243 11%
6,193,207 13% 4,180,620 12%
To Expansion
Depreciation & amortisation 1,735,045 4% 1,636,047 5%
Retained in business 4,976,317 11% 3,304,554 9%
6,711,362 15% 4,940,601 14%
47,439,957 100% 36,204,239 100%
Statement of Value Added & Distributed 2018 Statement of Value Added & Distributed 2017
15% 14%
13% 12%
43% 43%
8% 8%
21% 23%
To Depositors/Financial Insitutions To Employees To Shareholders To Government To Expansion

Remunerative Depositors’ Pool
2018 2017
Rupees in '000
Income from financing activities 29,061,728 20,793,510

Income from investments 6,139,566 5,969,474
Income from placements with financial institutions 11,522,776 8,612,593
Other income attributable to pools 2,717,152 2,209,095
Total Income 49,441,222 37,584,672
Less: Directly attributable charges to pools including takaful (Note) (1,431,931) (959,646)
Less: Profit on assets allocated to IERS and other special pools (8,676,943) (5,035,426)
Less: Profit share allocated to bank's equity and other pools
in Mudarabah pools (11,717,502) (9,249,421)
Gross distributable Income 27,614,846 22,340,179
Mudarib (Bank) share of profit before hiba 14,057,355 11,323,001

Less: Hiba from Mudarib (Bank) share (1,388,628) (1,491,157)
Net Mudarib (Bank) Share of profit 12,668,727 9,831,844
Rab-ul-Maal share of profit 14,946,119 12,508,335
Rab-ul-Maal share of profit is distributed as follows:

Remunerative depositor's profit share in Mudarabah pools 14,946,119 12,508,335
The Bank maintain following four remunerative general pools:
Net Income Profit share Mudarib Hiba from Net Mudarib Remunerative
allocated to allocated to (Bank) Mudarib (Bank) share depositors'
General Pool bank's equity share of (Bank) of profit share in
and bank's and other profit share Mudarabah
equity pools pool
2018
Rupees in '000
Rupee deposit pool 38,060,143 11,430,491 13,314,826 1,388,628 11,926,198 14,703,454
Dollar deposit pool 1,231,221 270,257 720,723 - 720,723 240,241
Pound deposit pool 37,775 15,365 20,169 - 20,169 2,241
Euro deposit pool 3,209 1,389 1,637 - 1,637 183
39,332,348 11,717,502 14,057,355 1,388,628 12,668,727 14,946,119
2017
Rupees in '000
Rupee deposit pool 30,903,519 9,158,057 10,872,732 1,491,157 9,381,575 12,363,887
Dollar deposit pool 644,561 78,055 424,879 - 424,879 141,627
Pound deposit pool 29,535 7,863 19,505 - 19,505 2,167
Euro deposit pool 11,985 5,446 5,885 - 5,885 654
31,589,600 9,249,421 11,323,001 1,491,157 9,831,844 12,508,335
Note: Administrative and operating expenses (including salaries and marketing costs) are paid by the Bank and not charged
to the Depositors' pool as per the guidelines of Mudarabah Pools.

Statement of Inventory
Meezan Bank provides financing through various sale-based modes including Murabaha, Musawamah, Istisna, Tijarah,
Salam, etc. Under these modes, the Bank either purchases the goods to be financed or gets them manufactured. It then
sells the goods to the customer on spot / deferred basis.
This statement signifies the difference of Islamic modes of financing that is based on trade of real assets and goods.
It also demonstrates the exposure that the Bank takes in different sectors.
The goods lying unsold at the date of the financial statements are carried as inventory in the financial statements of the
Bank. The sector wise detail of inventory held by the Bank as at December 31, 2018 is as follows:
2018 2017
Sector Nature of Inventory Rs. in ‘000 Rs. in ‘000
Agriculture & Food Products Corn, Sugar, Soyabean, Ghee, Canola, Rice (Grain, Paddy), Wheat, Syrups, Oil Cake,
Edible Oil 14,588,574 9,889,810
Chemical and Pharmaceutical Chemicals, Medicines, Paints, Fertilizer, Polymers 3,291,088 2,833,451
Petroleum Products High Speed Diesel, Low Sulphur Furnace Fuel Oil, High Sulphur Furnace Fuel Oil,
Premium Motor Gasoline 7,274,000 155,000
Textile Cotton (Raw Cotton, Bales, Fabric, Yarn), Bed Sheets, Garments,
Home Textile Products (Towels, Pillow Covers, etc) 5,906,976 4,241,682
Wholesale & Retail Trade Rock Phosphate, Coal, Caps and Corks, Confectionary Items, Medical Machinery 1,617,206 1,330,567
Construction Iron & Steel, Sanitary Items & Fittings, Pipes, Cement Bags 797,283 2,314,681
Others Poultry Feed, Float Glass, Copper Wire, Bottle Caps, Ship Scrap, Battery Lead Panels,
Electronic Components, Sport Goods, Cars, ATM Machines, Fans, Foam, Auto Spare,
Finished Leather, Parts, Paper, Packaging & Material (Chip Boards, Glass Vials,
Glass Bottles) 3,113,706 1,017,621
Grand Total 36,588,833 21,782,812
Sector-wise Breakup
2% 9%
40%
4%
16% Agriculture & Food Products

Chemical and Pharmaceutical
Petroleum Products
Textile
Wholesale & Retail Trade
Construction
Others
20% 9%
Statement of Financing Portfolio Income

Meezan Bank provides financing to its Corporate, Commercial, SME, Agriculture and Consumer banking customers using
a variety of Shariah-compliant modes of financing. The below mentioned matrix shows the percentage of income earned
on different financing modes, and depicts a well balanced and diversified financing portfolio of the Bank.
The diversification has been achieved by using arrangements based on trade, rent, joint ownership, profit / loss
partnership and agency, to suitably meet the needs of customers and provide a halal return.
Rs in Million
2018 2017
Islamic mode of financing Amount % Amount %
Running Musharakah 9,425 31.20% 6,276 29.20%
Diminishing Musharakah 7,403 24.51% 6,629 30.84%
Ijarah 3,173 10.50% 2,036 9.47%
Istisna 3,084 10.21% 1,989 9.25%
Musawamah 1,820 6.03% 907 4.22%
Wakalah 2,888 9.56% 1,753 8.15%
Murabaha 1,196 3.96% 1,072 4.99%
Tijarah 614 2.03% 449 2.09%
Salam 292 0.97% 185 0.86%
Others 311 1.03% 200 0.93%
Total 30,206 100% 21,496 100%

Business and Operations Review
Business Review
Meezan Bank, in its seventeenth year of operations as a brand image, effective relationship management and
full-fledged Islamic Commercial Bank and now as the an extensive network of 660 online branches in more
‘Best Bank’ in Pakistan, maintained its growth than 180 cities that not only gives the Bank excellent
momentum and recorded excellent results for the year outreach throughout the country but is also a key
2018. Profit after tax increased to Rs 8.96 Billion from contributor to its success, enabling it to not only
Rs 6.31 Billion in 2017 – a commendable growth of over increase its deposit base but also maintain optimal cost
42%. The Bank’s growth rate has made it the fastest of funds.
growing bank in the industry with a branch network of
660 branches in more than 180 cities, a deposit of Financing portfolio of the Bank grew by 22% in 2018.
Rs 785 Billion and an asset base of over Rs 938 Billion. The Bank recorded a growth of 14%, 44% and 41%
The Bank offers a variety of product and services respectively in Corporate, SME / Commercial and
targeted towards the needs of masses, and mid-tier Consumer segments. During the year, Meezan Bank
and premium banking customers. also engaged with International Finance Corporation
(IFC) and Karandaaz Pakistan to further penetrate the
Some of the key accomplishments, achievements and SME and Commercial sector. The main focus of the
targets of the Bank during the year are as follows: Bank remains on building a high-quality financing
portfolio, targeting the best corporate, commercial and
■ 18% growth in the deposit base, which closed at retail clients. The financing portfolio is well-diversified
Rs 785 Billion by segments, with maturities comfortably balanced at
■ Growth in financings by 22% with the Advances to 64% in short-term and 36% in long-term. ADR of the
Deposit Ratio (ADR) improving to 65% Bank increased to 65% as compared to 62% in 2017.
■ Trade business volume surpassed Rs 1 Trillion The Bank’s non-performing financing ratio of 1.34% is
one of the lowest in the banking industry, which reflects
Meezan Bank’s growth in deposits was more than the excellent asset quality of the Bank.
double the banking industry growth in deposits and
was even more impressive since it was achieved by With the support of a wide branch network, the Trade
increasing the ratio of Current Accounts to Total Business volume handled by the Bank achieved an
Deposits from 35% in 2017 to 37% in 2018. impressive growth of 43% over the previous year.
Contributing to this success was the Bank’s customer-
The main reasons for this were the Bank’s excellent centric approach and efficient Treasury Management.
Best Bank
in Pakistan
Recognized by
Pakistan Banking Awards 2018

Retail Banking
Meezan Bank has the largest Islamic banking customer that customers can transfer funds, pay bills, view
base in the country, serving over 2.2 Million customers. discounts and get detailed information on their account
Since its inception in 2002, the Bank has witnessed activity and financing offerings whenever, wherever
tremendous growth and has attained the position of and however they want.
being the country’s 7th largest bank in a short span of 16
years, which has only been possible due to its wide Meezan Bank’s call center facilitates customers by providing
range of deposit products and the continuous support product information, performing certain operations like
and patronage of its customers. initiating requests, activating debit cards, and taking
customer complaints and suggestions.
The Bank is also playing a key role in promoting
Financial Inclusion (making financial services available The Bank’s focus for 2019 will be on further improving
to those sections of the population who do not have and enriching its customers’ banking experience.
access to formal banking channels) by opening
branches in remote cities and placing special Branch Network
emphasis on two products - Meezan Asaan account
and Branchless Banking - that allow this segment of the Branches Cities
population to open bank accounts and conduct 700
660
financial transactions using their mobile phones. 650
571 601
Financial Inclusion is an important goal of both the 600
Government of Pakistan and the State Bank of Pakistan, 550
551
and Meezan Bank is committed to supporting this 500
428
initiative. 450
400
351
In order to facilitate customers in their remittances, 350
Meezan Bank launched Meezan Express accounts 300
(both current & savings) and Meezan Smart Wallet, a 250

181
Mudarabah-based Home Remittance account that is 200
143 146 154
currently facilitating the Bank’s customers and 150
103 117
increasing its deposit base. 100
50
0
2013 2014 2015 2016 2017 2018
Deposits
Meezan Bank offers an extensive range of deposit
products - current, savings and term deposit accounts,
and is a market leader in offering innovative Shariah-
compliant products and services to cater to the diverse
needs of both individuals and companies, ranging from
SMEs to large corporates.
The Bank’s wide range of deposit products, covering all

categories of customers (individual & business) has
enabled it to achieve exponential growth through a
large, well-diversified and stable customer and deposit
base. The Bank’s total deposits as of December 31,
2018 stood at Rs 785 billon, increasing 18% over 2018.
CASA mix remained stable at 73% as compared to the
previous year.
Deposits
Rupees in Billion
785
800
667
700
600 559
500 468
450
339
350
Branch network plays a vital role in deposit 288
300
mobilization. Meezan Bank opened 59 new branches
during the year, bringing the current branch network to 250
660 branches, operating in 181 cities across Pakistan. 200

150
In addition to the tailored service provided in its 100
branches, the Bank provides multiple touchpoints to its 50
customers for conducting their banking transactions. 0
The Bank’s diverse portfolio of Alternate Distribution 2013 2014 2015 2016 2017 2018
Channels provides diverse touch points supported by
cutting-edge secure technology. The Bank’s Digital
channels range from ATMs, internet banking, mobile
and SMS banking. The rich and ever-expanding set of
features on Meezan Bank’s digital touchpoints means

Wealth Management
Meezan Bank offers a complete range of deposit and
other investment products that provide its customers
a complete Wealth Management solution. Dedicated
Relationship Managers cater to the various investment
needs of customers by identifying investment opportunities
for them, providing them relevant advice and educating
them about the various products offered by the Bank.
Meezan Kafalah
Meezan Kafalah is a Shariah-compliant alternative to
Bancatakaful products. It is a simple and profitable
savings plan with natural life Takaful coverage, along
with many features that make it an attractive deposit Major benefits currently offered under Meezan Premium
product for customers. Meezan Kafalah has received Banking are:
a very positive response from retail customers as it is
Meezan Mastercard Platinum Debit Card – the most
designed to meet their long-term savings objective
■
prestigious Debit Card of the Bank, offering access to
with the added protection of Takaful (Islamic
local and international lounges, discounts at
insurance). Meezan Kafalah provides value-added
numerous retail outlets and restaurants across the
features such as 100% Accidental Death Benefits /
country, along with higher transactional, withdrawal
Takaful coverage on Permanent Total Disability, and
and fund transfer limits, making it the perfect
Funeral Expenses. These benefits can be availed by
companion for high net worth individuals.
a minimum investment of only Rs 2,000 allowing a
maximum coverage up to Rs 15 Million having Lowest ■ Premium Phone Banking – a dedicated Call Center
Takaful expense rate of 0.130%. The tenure of exclusively for Premium Banking customers.
Meezan Kafalah is 3 to 15 years for every individual ■ Access to Airport Lounges in Karachi, Lahore,
up to 55 years of age. Islamabad, Multan and Sialkot, and at selected
airports abroad through Meezan Mastercard Debit
As of December 31, 2018 the Bank provided Takaful Card on international flights
coverage of approx. Rs 11.5 Billion to more than ■ Dedicated Premium Banking Centers in Karachi,
28,000 customers; an increase of over 28% from
Lahore, Islamabad, Faisalabad, Rawalpindi and
2017. Sialkot, with the facility of private conference rooms
for short business meetings.
■ Fee Waivers on selected banking and Alternate
Distribution Channels services.
Alternate Distribution Channels

In addition to its traditional ‘brick and mortar’ branch
network, Meezan Bank provides banking services
through a broad spectrum of channels, including:
■ The largest ATM network of any Islamic Bank
■ Internet Banking
■ Mobile App
■ SMS Banking
■ Visa and Mastercard debit cards
■ 24/7 Call Center
These channels are often collectively referred to as
Alternate Distribution Channels (ADCs). In addition to
these, the Bank also provides e-Statement and SMS
Alert facilities.
Meezan Premium Banking
Meezan Premium Banking caters to the banking needs A robust state-of-the-art ADC infrastructure is an integral
of high net worth individual customers and sole part of the Bank’s corporate philosophy, which emphasizes
proprietors and provides them with exclusive services digital innovation. The main focus of the Bank’s digital
and value-added benefits - from personalized banking strategy is to provide customers with convenient and secure
services to exclusive discounts and other privileges. access to their accounts for all banking requirements,
wherever and whenever they require.
Premium Banking customers enjoy priority service at all
Meezan Bank branches and also have access to Customers can use ADCs for all their basic banking
state-of-the-art Premium Banking Centers in major needs - cash withdrawal, shopping and payments,
cities of the country. During the year, new Premium e-commerce i.e. online shopping, funds transfer, bill
Banking Centers at K Block Model Town Branch, payments, balance and statement inquiries, product
Lahore and DHA Phase 1 Branch, Rawalpindi were also and services information and complaint registrations,
inaugurated to facilitate high net worth customers of the among many other services. Meezan Bank has always
respective areas. strived to make banking a convenient and pleasant

experience for its customers and this philosophy is Meezan Bank’s Debit Cards portfolio continued its
especially visible in the Bank’s Alternate Distribution upward trajectory in 2018. POS Transactions grew by
Channels. 51%, e-commerce transactions grew by 192% and
International Transactions grew by 252% during the
ATM Network year. It is due to the long-standing patronage of
Meezan Bank witnessed yet another year of healthy Meezan Bank’s customers that the Bank now enjoys
growth in 2018. Countrywide ATM Network grew from one of the highest usage and card activation ratios in
580 ATMs to 625 ATMs while the transaction volume the industry.
on ATMs grew by 27% during the year. Substantially,
all ATMs were upgraded with EMV and Biometric Internet Banking
capability which will open up many avenues for Meezan Bank revamped its Internet Banking in 2018
new initiatives including Cardless Withdrawals, to make it easier and more user-friendly as well as to
Remittances and Account Verifications. give it a modern and more pleasing look. The new
Internet Banking offers an adaptive design and can
Debit Cards easily be used on all types of devices including
Meezan Bank’s Debit Cards offer a wide range of
mobile and tablet. The new dashboard view on
features and benefits such as chip-based security,
Internet Banking allows customers to access
NFC payments, 3DSecure E-commerce payments,
frequently used features upfront; this helps in
fastest Debit Card activation, and an extensive
alliances and discounts program with special focus delivering one of the fastest Internet Banking
on e-commerce promotions. Meezan Bank’s Blessed experiences in Pakistan. The launch of new Internet
Friday discount program with leading e-commerce Banking has resulted in an unprecedented growth in
merchants has already become a hallmark of debit IBFT and Bill Payment transactions through this
card discounts in the industry. channel, which grew by over 41% in 2018 as
compared to 25% in the previous year.
Mobile App
Meezan Bank’s Mobile App has been the most
preferred and fastest growing medium of digital
transactions among all Alternate Distribution
Channels in the recent years. Financial transactions
using the Mobile App grew by over 70% during the
year and the App is expected to remain the fastest
growing channel in the future.
Currently, with over 300,000 downloads, Meezan

Bank’s Mobile App has been amongst the most
trending and best rated apps in its category on both
Google’s Play Store and Apple Store.
IBFT
IBFT or Interbank Funds Transfer is a peer to peer
funds transfer facility among 1Link Member Banks in
Pakistan. Meezan Bank offers IBFT facility via its
In order to further augment the product portfolio, ATMs, Internet Banking and Mobile App, whereby
Meezan Bank launched an off-the-shelf version of customers can instantly transfer funds to any other
Visa Platinum Card for customers who wish to bank account in Pakistan. Meezan Bank witnessed a
enjoy the best of debit card features. Moreover, healthy growth in the numbers of IBFT transactions,
Supplementary Cards were also launched in 2018 so which grew by 42% in 2018.
that immediate family members of the Bank’s
customers can also enjoy benefits similar to those QuickPay
available to the basic customers. Meezan Bank’s QuickPay service offers a wide range
of bill payment options for Utility Companies’ Bill
Payments, Mobile Top-ups, Educational Institutions
Fees, Mutual Fund Investments, Airlines Tickets and
Government Entities Payments, etc. through Meezan
Bank’s ATMs, Internet Banking and Mobile App. The
number of billers during 2018 almost doubled to over
80 billers and the list is still growing. QuickPay
transactions grew by over 50% in 2018 whereas
QuickPay transactions through Mobile App grew by
over 63%.
Call Center
The Bank’s in-house Call Center is managed by
a professional team of phone banking officers,
facilitating customers and the general public
nationwide for banking transactions and general
banking or product enquiries.

SMS Alerts Meezan Bank also signed up with Mastercard for their
Meezan Bank offers one of the most extensive SMS most advanced Analytics and Fraud Prevention
Alerts service to its customers so that they stay platform, called Mastercard Decision Intelligence,
informed about all activities and transactions in their and with Visa for their Fraud Alert and Prevention
accounts. Continuous efforts are being made to platform called Visa Risk Manager. These platforms
provide fastest delivery of SMS and to maintain a are not only capable of deploying various risk
high uptime by effectively managing two of the rules on debit card transactions using multitude of
leading SMS gateway providers simultaneously. parameters but also provide real time risk scoring of
Meezan Bank is also among one of the few banks that all international and local debit card transactions.
provide e-mail alerts together with SMS alerts as a Meezan Bank’s Transaction Monitoring Team uses
complimentary service. In 2018, the number of these platforms for their 24/7 monitoring in order to
subscribers to SMS Alert Service grew by 30% as attend all security alerts from these systems on real
compared to 2017. time basis.
QR Payments Meezan Bank also completed Chip & PIN certification

Meezan Bank is one of the leading players in the on Visa and Mastercard during the year which will go
industry when it comes to the QR Payments a long way in securing our new debit card customers
Ecosystem. In 2018, Meezan Bank, in partnership from any misuse on POS if the card is lost or
with Fonepay, issued over 100,000 new QRs to a skimmed.
broad base of merchants from across Pakistan and
processed over 2 Million QR transactions as Acquirer All ATM machines of Meezan Bank were also
of QR payments. Acknowledging the unprecedented upgraded during the year for EMV acquiring. With this
upgrade, all Meezan Bank ATMs can now also read
growth in QR merchant acquisition, Meezan Bank
and process EMV chip data when a chip card is
was bestowed with the ‘Spearheading Acceptance
inserted for ATM cash withdrawal.
Location Growth’ award by Mastercard for the Middle
East and Africa Regions this year.
Lastly, to limit the Bank’s exposure in case of any
cyber-attack scenario, the Bank has successfully
tested and deployed aggregate daily limits with Visa
and Mastercard in addition to taking various other
measures which will effectively protect the Bank
against any cyber-attack.
A completely secure
Banking Experience
Continuous Focus on Security

Customer security is one of the topmost priorities
for Meezan Bank. Working on this strategic priority,
Meezan Bank took a number of new initiatives during
2018 to further strengthen the security of Debit Cards
usage.
In order to protect customers from skimming frauds,

an innovative Skimguard feature was launched on
Meezan Bank’s ATMs where a One Time Password
(OTP) is triggered on real time basis if a high value
transaction is conducted on the ATM. The transaction Meezan Bank is committed to providing value added
is processed only upon successful verification of OTP products and services to its customers to make their
by the cardholder. transactional experience convenient and secure, and
is continuously working towards introducing new
For enhanced security on online e-commerce products, services and payment methods for its
transactions, Meezan Bank introduced 3DSecure customers.
services of Mastercard and Visa in 2017 which
successfully protected over a Million transactions in We look forward to an even more exciting and
2018. happening year ahead.

Highlights - Year 2018 DEBIT CARDS
11%
INTERNET BANKING
AND MOBILE APP
SMS SUBSCRIBERS
SUBSCRIBERS TM 42%
30%
GROWTH
COMPARED TO POS AND
ATM 2017 E-COMMERCE
TRANSACTIONS TRANSACTIONS
27% 76%
IBFT BILL PAYMENT

TRANSACTIONS TRANSACTIONS
42% 50%
Payments and Cash Management also reduce operational burden by outsourcing

The Bank offers two Cash Management products, the management of country wide collection and
Meezan eBiz and Meezan eBiz+. More than 1,600+ payment needs. Each implementation is tailor-made
Corporate, Commercial and SME customers are to meet customers’ specific MIS and reconciliation
availing the benefits of this electronic product suite requirements. Functionality available, in addition to
to manage their collections, payments, MIS and features of eBiz+, includes:
reconciliation needs, resulting in increased business
productivity. . ■ Manage collections through branches as well as
electronic and Alternate Distribution Channels
Meezan eBiz
Meezan eBiz allows customers ■ Manage payment like funds transfer, Inter
to execute banking transactions Bank Funds Transfer, Payorder issuance, RTGS,
instantly over the internet in a corporate cheques issuance as well as e-Dividend
secure and convenient manner. With the help of payments .
Meezan eBiz, customers can view and download their ■ Real Time Information through online reporting for
account balances, account details, account statements reconciliation and transactional alert through SFTP,
as well as efficiently conduct their day-to-day email and SMS
transactions such as Intra and Inter Bank Fund
■ Host to host integration with customer ERP system
Transfers, salary payments, utility bill payments,
for both collection and payments execution
payorder issuance and many more via an automated,
secure and versatile electronic processing platform. ■ Dedicated Customer Service / Client Service Team
with excellent system integration capabilities. The
Meezan eBiz+ Bank has not only received a very positive response
Meezan eBiz+ is a comprehensive from local companies but also from multinational
customized Cash Management companies and acts as a trusted strategic partner
solution which allows Corporate, for their transactional banking needs. The number of
One window solution for all your Cash Management needs
Commercial and SME customers to not only Cash Management mandates being handled by the
electronically manage their banking relationship, but Bank grew by over 60% during the year.

Home Remittance working under the guidance of Shariah Supervisory
The Home Remittance Unit (HRU) of Meezan Bank Board, the Bank is capable of providing a wide range of
plays an active role in the nationwide drive of Shariah-compliant financing solutions to meet the working
stimulating and formalizing home remittances through capital finance, import export finance, funding for
banking channels under the Pakistan Remittance commodity operations, long-term finance, documentary
Initiative (PRI) and non-PRI arrangements. A focused credit requirements and project financing needs to its
approach towards this business has contributed in customers.
improving the banking experience of customers and The Bank’s Corporate Banking relationship team
has allowed the Bank to progressively grow this collaborates across lines of businesses and partner
business segment.
groups (Treasury, Cash Management, Investment Banking,
The Bank increased its outreach; expanding its market Commercial Banking and Consumer Banking) to develop
share in the UAE, UK and tapping a new market i.e. and deliver suitable, value-added and innovative solutions
Kuwait, thereby increasing volumes routed through it by while continuing to integrate and upgrade delivery
40%. To facilitate its customers, the Bank runs a platforms, business intelligence and driving operational
dedicated Home Remittance Customer Support service excellence.
which directly resolves queries of Home Remittance
Despite challenging business atmosphere during the year
customers in order to provide them better service and
due to uncertain political environment and increasing
prompt resolution of complaints.
competition amongst banks, the Bank was able to deliver
In 2018, with a special focus on innovation and the extraordinary results in all key performance areas by
streamlining of processes, Meezan Bank procured and building strong portfolios and business verticals.
implemented a new Home Remittance solution, which
focused on automation and going paperless. To ensure
proper Know Your Customer (KYC) and compliance
checks, biometric verification of Cash over the Counter
(COC) customers has been tested, which will go live in
the first quarter of 2019.
Branchless Banking
Almost 62% of Pakistan’s population remains unbanked
due to reasons such as lack of access to a physical
branch network, hesitation to avail interest-based
banking facilities and stringent KYC. Providing this
section of the population access to Islamic banking
would be a major step towards realizing Meezan Bank’s
Vision of establishing ‘Islamic banking as banking of
first choice...’. Corporate Financing
The Bank’s corporate assets portfolio grew by 14% to
There are over 150 Million mobile phone subscribers in Rs 373 Billion in 2018. The focused business
Pakistan while the total number of bank accounts is only development strategy adopted by the Bank to vigilantly
build a high quality and well diversified portfolio has
around 41 Million. At the same time, the total number of
enabled the Bank to grow its corporate financing book
‘smart phones’ in the country is now reported to have at a CAGR of 24% since 2014, with non-performing
crossed 40 Million, and availability of 3G and 4G financing kept at 1.35%.
services means that mobile phone subscribers can now
The Bank, with excellent service delivery capabilities
easily conduct banking transactions such as payments
and well-equipped teams of professionals, has been
(P2P, B2P, G2P, etc.), mobile top-ups and account trusted by both local entities and multinational
transfers. The Bank is well positioned to serve this companies as the strategic banking partner for their
market segment as it is one of the twelve banks in the 360 degrees banking needs.
country that have a ‘Branchless Banking’ license – a
A detailed description of corporate banking products
prerequisite to this product offering. offered by the Bank is on page 69.
Corporate Banking Investment Banking
Meezan Bank provides a comprehensive variety of Being transfigured from an Investment Bank, Meezan
financial services to a large number of corporate clients Bank continued its bequest as one of the most active
including multinationals and public sector entities by Investment Banking players in the Pakistani market
partnering with them to build long-term relationships. by providing a full range of investment banking
These include traditional products required by companies services including financial advisory, green and brown
for managing their working capital & trade finance needs field project finance, equity and debt capital market
and more sophisticated and innovative solutions for arrangements to meet the ever-demanding financing
large-scale investments. By drawing on the expertise of needs of its clients.
in-house product specialists and Shariah scholars

Since inception, the Bank has led advisory and well-equipped to provide innovative and tailored
arrangement mandates for a large number of project solutions to cater to the specialized needs of its diverse
finance, syndications and capital market transactions; clientele. These attributes along with the team’s deal
bringing the total volume of Investment Banking structuring, placement and execution capabilities have
transactions arranged by the Bank to the tune of over also been widely acknowledged by numerous local and
Rs 1 Trillion. During 2018, with the commitment to maintain international bodies.
its market leadership position, the Bank successfully
delivered transactions of over Rs 263 Billion, of which With its Vision to ‘Establish Islamic banking as banking of
some of the notable transactions are highlighted overleaf. first choice...’, the Bank is committed to continue
innovating in the field of Islamic investment and
With a highly qualified team, having diversified experience corporate financing, and maintain its position as the
and depth of local market acumen, the Bank is leader of Islamic banking industry in the country.
June 2018 June 2018

8
8
MEEZAN BANK
PAK ARAB PIPELINE COMPANY
SUKUK ADVISER OF THE YEAR PKR 11.80 BILLION
SYNDICATED TERM FINANCE FACILITY
PAKISTAN
Syndicated Loan
MEEZAN BANK
THE ASSET ASIAN AWARDS of the Year-Pakistan MANDATED LEAD ADVISOR & ARRANGER
OIL AND GAS DEAL OF THE YEAR
Daniel Yu
Editor in Chief Daniel Yu
Editor in Chief
June 2018 June 2018

8
8
WATER AND POWER MEEZAN BANK

DEVELOPMENT AUTHORITY
US$ 1.37 BILLION BEST ISLAMIC INVESTMENT BANK
DASU HYDROPOWER PROJECT – STAGE 1 PAKISTAN
MEEZAN BANK
SHARIAH ADVISOR THE ASSET ASIAN AWARDS
RENEWABLE ENERGY DEAL OF THE YEAR
Daniel Yu
Daniel Yu Editor in Chief
Editor in Chief
IFFSA
ISLAMIC FINANCE FORUM OF SOUTH ASIA
IFFSA
IFFSA
2018 2018 2018

GOLD AWARD GOLD AWARD GOLD AWARD
ADVISORY SERVICES PROVIDER DEAL INVESTMENT BANK
OF THE YEAR OF THE YEAR OF THE YEAR

Major Investment Banking
Transactions
Lucky Electric
Power Company
Power Holding Lucky Electric Power K – Electric Limited
Private Limited Company Limited Syndicated Project Finance Facility
Syndicated Finance Facility Syndicated Project Finance Facility Rs 25,000 Million
Rs 100,000 Million Rs 70,700 Million Mandated Lead Advisor & Arranger
Mandated Lead Arranger & Shariah Structuring Advisor
Lead Arranger &
Shariah Structuring Agent Shariah Structuring Advisor
Nishat Group
PIONEER
Pak-Arab Pipeline Company Hyundai Nishat Motors CEMENT LTD.
Limited (Private) Limited Pioneer Cement Limited
Syndicated Long Term Finance Facility Syndicated Islamic Syndicated Islamic Finance Facility
Rs 11,800 Million Finance Facility
Rs 2,600 Million
Mandated Lead Advisor & Arranger, Rs 5,660 Million Mandated Lead Advisor &
Investment Agent, Accounts Bank & Financial Advisor & Arranger, Shariah Structuring Agent
Shariah Structuring Advisor Mandated Lead Arranger and Investment Agent
Commercial Banking Supply Chain Financing Program
(Including Small & Medium Enterprises with Karandaaz
(SME) and Agricultural Finance) In 2015, the Bank partnered with Karandaaz
Meezan Bank is cognizant of the fact that in order to Pakistan to structure financing programs to meet
achieve its Vision of establishing ‘Islamic banking as financing needs of vendors and distributors
banking of first choice...’ it must increase the outreach operating in organized supply chains in Pakistan.
of Islamic banking well beyond the blue-chip corporate The financing programs are based on risk sharing
sector. Accordingly, the Bank has developed a very mechanism between Karandaaz and the Bank.
clear focus on developing the SME and Agriculture Karandaaz Pakistan has financial and institutional
sectors, which represent the backbone of Pakistan’s support from leading international development
economy. The consistent and impressive growth of finance institutions, principally United Kingdom's
Commercial Banking reflects the level of trust and Department for International Development (DFID)
confidence the Bank has built with its customers. The and the Bill & Melinda Gates Foundation. The
overall funded portfolio for this segment has increased Consultative Group to Assist the Poor (CGAP), a
from Rs 75 Billion in 2017 to Rs 108 Billion in 2018 - a member of the World Bank Group, managed the
44% growth. start-up phase of the Company and continues to
provide technical support. Karandaaz promotes
Financing Portfolio Commercial, SME & Agriculture access to finance for small businesses through a
Rupees in Billion commercially directed investment platform and
120 financial inclusion for individuals by employing
108 technology enabled digital solutions.
100
Meezan Bank is the first Pakistani bank to be
80
75 selected by Karandaaz for their specialized
Supply Chain Partnership Program and the two
60 organizations have committed to provide Rs 5 Billion
48 financing to small and mid-sized corporate vendors
40 and distributors.
28.20
20
13.70 18.50 The financing programs entail partnering with key
corporate customers to provide financing to their
0 supply chain business partners. Towards this end,
2013 2014 2015 2016 2017 2018 the Bank has signed mandates with top tier
corporates operating in Automotive, Fertilizer &
FMCG sectors of the economy. This initiative has
Small & Medium Enterprises successfully brought a large number of SME
Growth and development of the Small and Medium customers in the financing net through structured
Enterprises (SME) segment is of vital importance for financing programs.
sustainable socio-economic development of the
country. Meezan Bank has a clear focus on growing The Bank also partnered with a leading local
its SME business, which accounts for more than corporate for a pilot Agri Value Chain Financing
90% business entities in Pakistan. Program. As part of this program, the Bank provides
financing to select farmers for their advisory, quality
Continuing the strategy to capitalize on SME inputs, crop monitoring, farm support & market
segment and revamp existing SME financing model linkages requirements. The program includes
into a robust SME Banking model, Meezan Bank branchless banking services and clean financing
engaged the International Finance Corporation facilities for the Kharif season.
(IFC) for providing advisory and technical services.
According to IFC, the Bank is well positioned to The Supply Chain Financing programs exhibited
capitalize on the opportunities available in the robust growth in 2018, as new key corporates
industry. In this regard, a two-pronged approach partnered with the Bank to initiate the program for
has been adopted; the first is to strengthen & their Supply Chain business partners and this
deepen relationship with its existing liability customer resulted in a strong portfolio growth during the year.
base by offering them financing products through
program based financing and the second is to Agriculture Financing
attract new to bank financing customers through a Meezan Bank has been a reliable partner in the
lead generation strategy. growth of the agriculture sector, a strategically
important sector of the country and a prime supplier
The Bank has registered more than 40% growth in of raw material in the value chain from farm to fork.
SME financing in 2018. Growth in SME Trade Increase in agricultural productivity leads to increase
Business (Import & Export) has been a critical in the income of rural population which in turn leads
revenue driver as part of SME Banking philosophy. to more demand for industrial products. The
The Bank accelerated its pace of trade mobilization progress of agriculture sector therefore provides a
and recorded robust growth by routing Rs 208 sound base for economic development and is
Billion in the SME segment, registering a 51.82% considered one of the preconditions for takeoff or
increase over last year. self-sustained growth of any developing economy.

Meezan, as the leading Islamic commercial bank of Trade Business
the country, owes a critical responsibility to provide Islamic Banking is well-positioned to cater trade finance
Shariah-compliant solutions to meet the financing needs of customers and the Bank’s trade business
needs of the agriculture sector. For this, the Bank (Import & Export) performed very well in 2018, with
has launched Agriculture Finance so that financing a total volume of more than Rs 1 Trillion. The Bank,
requirement of the farming community can be with excellent service delivery capabilities and well-
served through Shariah-compliant means. The Bank equipped teams of professionals, has been trusted
has been further enhancing its outreach to rural both by local customers and multinational companies to
enterprises through branch network expansion be the strategic banking partner for their 360 degrees
while focusing on digital inclusion of the rural banking needs.
enterprises so that it can diversify its portfolio in the
days to come. Trade Business
Rupees in Billion
1200
1013
1000
800
712
552
600
461
376
400
315
200
0
2013 2014 2015 2016 2017 2018
Portfolio Mix
Meezan Bank has a diversified commodity financing Consumer Finance
portfolio, well-spread amongst Wheat, Edible Oil & Meezan Bank is the pioneer in providing Shariah-
Seed, Cotton Ginning, Fertilizer, Coal, Sugar, Rice, compliant consumer financing in the country and offers
Feed, and Steel sectors. Furthermore, Meezan Bank various consumer asset products to its customers.
is continuously exploring new and untapped sectors Performance for 2018 is provided below:
of the economy in order to enhance its portfolio and
to diversify its risk. Car Ijarah
Pakistan’s Auto sector witnessed strong growth in
Non Performing Finances the first two quarters of 2018. However, in the third
Despite the significant growth in assets, the and fourth quarters, the auto industry sales shifted
Bank has maintained strong credit screening and towards a declining pattern. The automobile
Risk Management criteria, since these form the industry of Pakistan grew by 21% in 2018 (as
backbone of any financing institution. Testimony compared to 26% in 2017) with car sales standing at
to the effectiveness of the Bank’s credit approval 331,880 units as compared to 274,236 units last
criteria is the fact that the Bank’s NPL ratio for the year.
Commercial Banking segment has improved from
2% to less than 1.5%. After 17 years of launching its Auto Finance business
and now as the ‘Best Bank’ in Pakistan, Meezan
Commercial Vehicles Financing Bank has a Car Ijarah Portfolio of over 32,000 active
Meezan Bank entered the Commercial Vehicles contracts that comprise new, used and imported
financing business in January, 2016. The Bank vehicles. The Auto Finance portfolio of the Bank
provides financing for commercial vehicles to the grew by a healthy 41% during the year. The Bank
SME and Corporate sector such as Oil, Goods, has remained active in implementing a number of
Passenger, Logistics and Transportation Companies. changes to improve the infrastructure, product
Financing is offered for all types of Commercial features and management of its Auto Finance
Vehicles ranging from Heavy Trucks, Prime Movers business. The Bank follows a strategy of maintaining
and Buses to Light Commercial Vehicles. Meezan stringent credit criteria for the Consumer Finance
Bank has emerged as a leading bank in this segment.
segment. Alhamdulillah, in 2018, Meezan Bank has
recorded growth of 78% over 2017.

Easy Home Meezan Bike Ijarah
Islamic banks have emerged as key financiers for the Meezan Bike Ijarah is Pakistan’s first Riba-free
housing sector and Meezan Bank, the largest Islamic motorcycle financing facility which is based on the
bank in Pakistan, stands amongst the leading Housing Islamic financing mode of Ijarah (leasing). In a short
Finance providers in the country. span of time, Meezan Bank has managed to form
alliances with all major motorcycle producers of
The year 2018 proved to be very positive for the Bank’s Pakistan and has financed around 8,000 bikes
Housing Finance business, as its Housing Finance across all major cities of Pakistan.
portfolio grew by Rs 2.16 Billion during the year, with
the disbursement figure for 2018 being the highest
ever amount in a single year (Rs 4.85 Billion), Labbaik Hajj & Umrah
creating an enabling environment for Shariah- Meezan Labbaik, Hajj & Umrah Facility is a
compliant Housing Finance in Pakistan. completely Halal & Riba-free travel solution for Hajj
& Umrah, that was initiated by the Bank as a
Corporate Social Responsibility project and has
gained immense popularity over the years,
especially after its enrolment in Government Hajj
Scheme in 2015.
Under Labbaik, Meezan Bank is enrolled in Govt.

Hajj Scheme through which customers can file their
Hajj applications through its branches and be
eligible for Hajj ballot conducted by the Ministry of
Religious Affairs and Inter Faith Harmony (MORA &
IH).
In its fourth year of enlistment i.e. 2018, the Bank

collected over 51,000 Hajj applications and retained
its 4th position among the thirteen (13) Banks on
MORA’s panel.
.
Labbaik Travel Asaan provides an excellent
opportunity to offer Private Hajj & Umrah to
customers on convenient terms i.e. Upfront Plan in
Meezan Consumer Ease which the customer pays the complete cost before
Meezan
Meezan Bank’s Consumer Ease Unit offers Shariah- travelling and the Installment Plan in which the
compliant consumer durable goods financing to its customer makes a down payment before travelling
customers. This business segment is progressively while the balance amount is paid in 12 equal
growing and offers financing for a diverse range of monthly installments without any additional charges.
consumer durables.
Labbaik Savings Asaan is alternatively
This is a limit based financing facility. Once the limit offered to customers who wish to perform Hajj /
of the customer is approved, the customer can Umrah later in life (i.e. 6 months to 20 years) under a
utilize the limit for purchase of durable goods Mudarabah based deposit account in which the
offered by the Bank. This facility has been customer gets profit every month on the deposited
well-received by the Bank’s customers since it amount.
makes the acquisition of household durables quick
and convenient.

Treasury Financial Institutions
Meezan Bank has one of the most well equipped In order to provide its services over a wide global
Treasuries in the country, both in terms of people and network, the Bank has further expanded its financial
systems. The Bank offers a wide range of Shariah institutions and correspondent banking network, which
compliant products that not only serves the foreign now encompasses 83 countries with more than 650
exchange needs of its clients but also makes effective correspondents. This network provides customers with
utilization of excess liquidity to generate profits that are a one-stop solution to their banking needs, including
paid as return to depositors. export and import transactions and foreign remittances.
Back to back guarantee business has also expanded
Being an election year, 2018 was marked by volatile with an increased number of international banks,
markets, presenting the Bank with opportunities and including Danske, DZ Bank, Emirates NBD and KEB
challenges alike in the Treasury market. The Bank Hana approaching Meezan to issue guarantees against
capitalized on these opportunities, achieving both their counter guarantees. This reflects on the improved
volumetric and earnings growth. The sales desk image of Meezan Bank internationally and enhanced
achieved trade volumes of USD 6.877 Billion level of comfort of correspondent banks working with
approximately, an 18% growth over the previous year. Meezan. The beneficiaries of these guarantees include
The FX interbank desk not only continued to facilitate government and private entities including SSGC,
the sales desk in managing this surge in volumes, but Pakistan Railways, CMA, Civil Aviation Authority and
also managed the exchange rate risk of the Bank various others, with applicants belonging to 18 different
profitably, increasing non-funded income by 15.5% countries.
over the last year. Keeping in view the idea of promoting Islamic Financial
Solutions, Meezan Bank has enlisted new Takaful
Volume of FX Business routed through Treasury Windows of insurance companies so as to provide its
USD Billion
customers with full-fledged Shariah-compliant financial
services. These Takaful windows are prioritized while
6,877
7000 assigning insurance limits for the transactions.
5,807
6000 Using the Bank’s correspondent network to enhance its
4,739 5,235 trade finance business, LCs were opened for new
5000
corporate customers for the import of commodities and
4000
heavy machinery & equipment, etc. from Europe, Asia
and the Middle East. With an aim to provide better
3000 services to the customers for their international
remittances involving trade and personal remittances,
2000
new nostro accounts have been opened with Danske
1000
Bank, Bank of Montreal and Standard Chartered for
Danish Krone, Canadian Dollar and Australian Dollar
0
respectively. The Bank now currently holds 26 active
2015 2016 2017 2018
nostro accounts in 18 different currencies which enable
its customers to carry out their banking transactions
The Bank’s ALM desk performed well despite the without facing heavy currency conversion charges.
challenges of effective liquidity deployment which were
even greater in 2018, given the fact that there were no
DID
Sukuk auctions conducted by the State Bank of
Pakistan during the year. Coupled with this, the growing
deposit base of the Bank flushed the ALM desk with
excess liquidity to the tune of approximately Rs 288
Billion. To manage this, the Bank entered into a
three-year Bai Muajjal with the Government of Pakistan,
which was the first of its kind, as previous GoP Bai
YOU
KNOW
Muajjal transactions had a one-year maturity. Through
ISLAMIC BANKS
this Bai Muajjal, the Bank was not only successful in
deferring the complete maturity of GoP Ijara 16 of face
MAINTAINING DEPOSITS
value approximately Rs 41.2 Billion for three years, but
WITH THE STATE BANK
by virtue of being the biggest participant of the auction
was also able to set the cutoff rate at 11.47%. In It is mandatory for every commercial bank to keep a specified
percentage of deposits raised from Current and Saving
addition to this, the Bank also increased its portfolio of
account holders as reserves with State Bank of Pakistan
Bai Muajjal on a secured basis to Rs 185 Billion (SBP).The Cash Reserve Requirement (CRR) of Islamic
approximately, thereby, incurring minimal capital banks is placed with SBP in a current account on which no
charge towards interbank exposures reflected on the return is paid to the bank. Besides CRR, Islamic Banks have
to invest 14% of their deposits in Islamic financial securities
balance sheet. For broadening liquidity allocation
such as GoP Ijarah Sukuk to fulfill Statutory Liquidity
options, the Bank successfully conducted Commodity Requirement (SLR). The income earned from these securities
Murahaba transactions through Pakistan Mercantile is free from any Riba and is therefore fully Shariah-compliant.
Exchange (PMEX) during the pilot testing phase, which Furthermore, Islamic banking institutions are not allowed to
is now under consideration by SECP for invest in T-Bills or PIB’s to maintain their SLR’s.
implementation.

Al Meezan Investment ■ Most Outstanding Asset Management Company -
Management Limited Pakistan
Corporate Insider
Asset Management ■ Best Asset Management Company

The asset management business of Meezan Bank is International Finance Awards
managed by its subsidiary, Al Meezan Investment
Management Limited (Al Meezan). The company has During the year under review, the JCR-VIS Credit Rating
been in operation since 1995 and has one of the Company has maintained Management Quality Rating of
longest and most consistent track records among Al Meezan AM1, which denotes that the Asset Manager
private sector companies managing mutual funds in exhibits excellent management characteristics. This is
Pakistan. It also has the distinction of being the only the highest management quality rating assigned to
asset management company in Pakistan with the management companies.
exclusive mandate of providing Shariah-compliant
investments solutions to its investors. Apart from asset The AUMs of Al Meezan have recorded an average
management, Al Meezan is also licensed to render annual growth of over 14% during the last five years, as
Investment Advisory Services and manage Voluntary shown below:
Pension Schemes.
Funds Under Management of Al Meezan
Al Meezan, with a track record of over 23 years of Fund Funds under Management Rupees in Billion
Management operations, reflects strong Islamic Discretionary Portfolios
asset-management franchise and healthy Assets Under 120
118
Management (AUM) profile with sizeable retail AUMs, 107
adequate governance & control framework, stable & 102
professional management team and well defined 100
investment process. The Company has also always

78
strived to serve its esteemed clientele with distinction 80
and service excellence, this is evident, in the fact that 66
over these two decades, Al Meezan has managed to 60
59
amass a healthy investor base of over 91,600 48

customers, who have entrusted the company with 10 9 93 88
40
providing them unique investment options and 71
competitive returns. 56
61
20 45
The company has grown considerably, since inception,

and has recorded to its credit multiple achievements. 0
The Company offers a comprehensive product suite of 2013 2014 2015 2016 2017 2018 Dec-2018
16 mutual funds and multiple investment plans

spanning from basic equity and income funds to
commodity funds, dedicated equity fund and The Product Development team at Al Meezan
aggressive asset allocation funds. The company also works proactively to introduce new Shariah-compliant
manages the largest Voluntary Pension Fund in investment structures while the Shariah Compliance team
Pakistan. With Assets Under Management (AUMs) of Meezan Bank ensures Shariah compliance of funds
crossing Rs 87.9 Billion mark in December 2018, under management of Al Meezan.
Al Meezan is the largest Shariah-compliant asset
management company of the country. The Company is During the year, Al Meezan successfully launched
also increasing its presence and has now 23 branches Meezan Rozana Amdani Fund (MRAF) & Meezan
across Pakistan, with 6 of them introduced this year. Strategic Allocation Fund II (MSAF-II). Moreover, five
additional plans, namely Meezan Capital Preservation
Plan – IV to VIII were introduced during the same period
Its AUMs represent around 15% of the total mutual
which generated considerable investor interest and
funds industry and 43% of the Shariah-compliant
enthusiasm.
mutual funds industry.
Al Meezan was also granted multiple accolades during

the year 2018 as given below:
■ Best in Shariah Compliant Investment Solutions

Corporate Livewire
■ The Islamic Asset Manager of the Year, Pakistan

The Asset Triple A
■ CIO 100 Honoree (2017)

CIO 100 Symposium
■ Best Investment Management Company-2018- Pakistan

World Finance
■ Islamic Fund Manager of the Year - Pakistan & Sustained

Excellence in Shari'ah Compliant Investments Best Asset Management Company in Pakistan
AI Global Media by International Finance Awards

Operations Review Information Technology
Meezan Bank aims to deliver superior quality products Meezan Bank synergizes digital, ADC and Data
and services that not only meet the expectations of its Analytics to drive innovation and automation through
customers but also exceed them. For this purpose, it is state-of-the-art technological solutions. Technology
imperative that the Bank has efficient support functions enables reliable, anytime, anywhere and customer-
infrastructure. At Meezan Bank, the support units work centric banking services while continuously evolving
together to ensure that all transactions undertaken by delivery channels and touch points to intermediate a
the Bank are in accordance with the directives of its diverse and sophisticated customer base.
Shariah Advisor and the Shariah Supervisory Board
(SSB) as well as with the Bank’s Policies and Technology is business, integrating with front office and
Procedures. Some of the key support units are: operations alike, contributing to growth, brand image
and customer satisfaction. Meezan Bank provides
Service Quality security, efficiency and convenience, at times opposing
The Bank believes in nurturing a service culture that goals, while providing superior banking experience to
ensures consistent delivery of its products and services customers as they access the Bank’s products and
to customers across all banking channels within services digitally and conventionally.
stringent service standards monitored regularly by a
dedicated team. Major technology-related initiatives of the Bank in 2018
were:
A Service Board, chaired by the Bank’s CEO, comprised
of senior level representation from various business and Business Process Automation via T24
support units, meets regularly to review service quality and External Applications Integration
performance of the Bank and takes measures to ensure Keeping true to the path of digitization, Meezan Bank is
that the Bank delivers a superior banking experience focused on delivering improved transaction turnarounds
for customers. through automation and modular enhancement of
processes.
A dedicated team regularly monitors the performance
of branches on service standards defined by the The Bank upgraded its T24 Core Banking System to
Service Board and evaluates Branch Service Quality. R16, permeating the ability and ease of process
The Bank also uses service evaluation techniques such enhancements throughout the Bank. This initiative will
as Mystery Shopping and conducts Customer provide digitized processes to customers and automate
Satisfaction Surveys for obtaining feedback from solutions.
customers for improving its products and services.
The Bank’s external applications connectivity platform
The Bank has a dedicated Complaint Management has also been extended, enabling fintech solutions to
team that handles customer complaints under the be on-boarded quickly and conveniently.
Customer Grievances Handling Policy approved by the
Board. The Bank’s robust complaint handling Launch of New Internet Banking
mechanism allows its customers to log complaints
The Bank has launched its new Internet Banking facility,
through a number of channels, including a 24/7 Call
providing a seamless digital experience of frequent
Centre, website, a dedicated email address for
activities on a single screen, adding user-friendliness,
complaints and ‘Hearing and Caring’ drop boxes
convenience and security; and increasing the range of
placed at branches nationwide.
online services for account holders.
DR Switching
The Bank has acquired a new solution to automate DR
Network Switching, providing seamless switching without
any manual intervention, reducing manual errors while
increasing uptime and service availability.
State-of-the-Art Network Security

The Bank has upgraded its firewall to more effectively
filter Internet-based application traffic, providing malicious
bot protection, application-layer encryption, and behavior

analytics to help defend against advanced level application The Bank works under the guidance and direct
attacks. supervision of its Shariah Supervisory Board (SSB) for
the following functions:
This initiative has reduced application attacks and
network threats, and also complies with international ■ Facilitating new research and product
security standards as well as provides increased network development activities.
controls.
■ Refining existing products and procedures.
Data Analytics ■ Providing Islamic banking trainings to new and
A major Bank initiative for 2019 is to utilize Data Analytics existing staff members.
(DA) in supporting, facilitating and growing business ■ Conducting regular Shariah reviews of
units. This will play a vital role as an incremental business branches and departments.
profitability contributor and yield a faster turnaround in
achieving corporate goals. ■ Coordinating with the Bank’s Shariah
Supervisory Board.
DA will facilitate segments by taking advantage of data ■ Facilitating learning programs of Islamic
to determine the products and services that will provide banking, both in-house and at external avenues
the quickest time to market with the highest plausibility of including educational institutes and training
success. companies.
The core objectives of Big Data Analytics enterprise The Bank has achieved such success and recognition in
integration platform is to achieve cost efficiencies, its research and product development activities that the
optimize revenues, enhance cost and return ratios, and practices and procedures adopted by Meezan Bank are
digitally enable the Bank, providing the best class accepted as benchmarks of the Islamic banking
customer service, in addition to day-to-day BI, Reports industry, both locally and internationally.
and Dashboards to Business and Operations.
Shariah Structuring and Review
The key focus of all these initiatives is to provide a The Bank has a dedicated Shariah structuring team that
world-class banking experience to our customers. works with Product Development Unit, clients, Shariah
scholars, lawyers, law firms and accountants to advise
Product Development client-specific structures to enable clients to obtain
The Bank has a dedicated Product Development Unit Shariah-compliant financing facilities. More than 4,500
that works as an autonomous unit under the Customer such cases were processed during 2018. The Bank’s
Support Group. The Bank does extensive research on staff also visited over 150 clients to gain hands-on
new and upcoming products having prime focus on understanding of their business processes to structure
Retail, Consumer and Branchless Banking products and Shariah-compliant financing solutions that suit their
services. needs.
Major functions of the Product Development Unit The Bank has successfully issued the first ever
comprise: Shariah-compliant Tier-1 Sukuk in Pakistan. The
structure has now become the standard for issuance of
such type of Sukuk in Pakistan, which is followed by
■ Coordination and collaboration with business
other banks who have issued Tier-1 Sukuk in the
support functions including IT, Operations &
country.
Compliance to competently manage product
improvement and execution.
During the year, SBP launched Islamic Long-term
■ Coordination with SBP IBD for Retail Banking Financing Facility scheme (ILTFF) to enable exporters
products. of the country to avail Shariah-compliant discounted
financing. In line with SBP's guidelines, the Bank
■ Overall management of the Bank’s deposit
pools. developed financing schemes for customers under
ILTFF and also provided guidelines for pool
■ Research on new Product Development, management mechanism of the product.
Consumer, Retail and Branchless Banking
products. The Bank has been financing commercial vehicles
through Ijarah mode for long. The Bank has now
■ Staff training related to Retail, Consumer and
developed a Diminishing Musharakah-based vehicle
Branchless Banking products.
financing product for those customers who could not
avail Ijarah-based facility because of their specific
Shariah Compliance balance sheet requirements.
Shariah compliance is a way of life at Meezan Bank and
the Bank has a zero-tolerance policy in this regard. The Bank developed a Shariah-compliant structure for
Various checks and balances ensure that all the financing of purchase of shares of a listed company for
products, services, processes, policies and procedures a corporate customer. The deal was developed on
of the Bank are fully Shariah-compliant. To continually Shares Murabaha structure under guidance of the
meet this objective, a dedicated department was Bank’s Shariah Supervisory Board.
established in 2005 to provide a centralized hub for
research and product development activities, finding The Bank also introduced Farmers Financing through
practical and Shariah-compliant solutions for different Salam mode. Under this program, farmers were
financial needs, conducting Islamic banking trainings provided financing for procuring agricultural input and
and Shariah compliance exercises. other services related to crops under the Salam mode.

During the year, the Bank structured and approved a ■ The Bank structured a Rs 5.66 Billion financing facility
Shariah-compliant solution for one of the largest Micro for Hyundai Nishat Motor Private Limited, a new
Finance Institutions (MFI) of the country for funding auto-manufacturer which is in the process of
small borrowers on a Shariah-compliant basis. The establishing an assembling plant in the country.
Bank reviewed and suggested improvements in the
processes, systems, accounting and documents of the ■ Rs 5 Billion Diminishing Musharakah-based Sukuk
MFI. The Bank also designed a Musharakah product was structured for Agha Steel Industries Limited.
under which the Bank will give financing to the MFI, ■ Diminishing Musharakah-based financial solution of
after which the MFI will further give micro financing to Rs 1.3 Billion was structured for Martin Dow Marker
the small borrowers. Limited.
Contributions towards the Islamic

Banking Industry of Pakistan
■ The Bank partnered with IBA – Centre for
Excellence in Islamic Finance and Centre of
Islamic Economics (CIE) in conducting awareness
programs for religious scholars, parliamentarians,
bureaucrats and government officials. More than
300 such participants attended the program in
February, 2018 in Islamabad. The direct result of
this program was the Senate Resolution,
unanimously passed in the Senate, resolving that
at least 30% of the Government debt should be
replaced with Shariah-compliant modes.
■ The Bank has led a consortium of Islamic Banks for
the structuring of Rs 200 Billion Energy Sukuk for
In this digital age where e-commerce is revolutionizing Ministry of Energy/ Power Holding Private Limited
the world of commerce, the Bank’s Shariah Supervisory for settling part of the energy sector circular debt.
Board has provided guidelines for extending financing ■ The Bank was also involved in devising a Shariah-
for durable goods to its customers through a digital compliant solution for the Deposit Protection
platform. Keeping in view the significant demand of Scheme (DPC) launched by the State Bank of
personal financing products, the Bank's Shariah Pakistan.
Supervisory Board has also provided guidelines for
meeting certain personal financing needs of individuals ■ The Bank has been actively supporting the State
through a Shariah-compliant structure. Bank of Pakistan for various matters related to the
Islamic banking industry, such as improvement of
Shariah Governance Framework, solutions for
The Bank continued its efforts to increase Shirkatul
Energy Finance Scheme, issuance of new Sukuk,
Aqd-based financings, as a result of which the quantum
etc.
of Running Musharakah transactions continued to rise
and the total Running Musharakah financing at year
end stood at Rs 158.86 Billion, which is 30% of the Internal Training
Bank’s total financing portfolio. ■ Meezan Bank has put into place a rigorous training
regime for its staff, in order to enhance their
The Bank worked on eight syndicated / structured knowledge and skills about Islamic finance. The
transactions involving hybrids of various structures learning initiatives include basic orientation for all
such as Ijarah, Diminishing Musharakah, etc. Some of new staff, specialized functional modules on
the major transactions are as follows: various business products and processes,
certificate programs on Islamic banking as well
■ The Bank has structured and developed a customized as refresher programs. During the year, 105
Diminishing Musharakah-based syndicated financing training sessions comprising 840 man hours were
solution for setting up of a coal-based power plant by organized for the staff members across the
Lucky Electric Power Company Limited. The deal country, catering to more than 5,000 employees
was first of its kind and value of its Islamic element of the Bank. This number includes orientation
was Rs 12.5 Billion. sessions for new joiners, refresher programs like
Asset Refresher, Deposit Refresher, Trade Finance
■ In order to support CPEC projects, the Bank & Treasury Operations and certification programs
provided short-term working capital syndicated in Islamic Financial Products.
Running Musharakah-based solution to China Power
Hub Generation Company Pvt Limited of up to Rs 4.8
Billion.
■ Diminishing Musharakah-based financial solution of
Rs 10.5 Billion was offered through a syndicate to
K-Electric for financing both running & upcoming
projects and to bridge the working capital
requirements of the company.
■ The Bank structured a Rs 3 Billion Sukuk transaction
for Javedan Corporation Limited as a part of its
initiative to develop the housing and infrastructure
sector.

■ The Bank also invited a number of professionals
and academicians to share their knowledge on
Shariah Audit & Islamic Financial
various practical and academic issues with the Advisory
Bank’s middle and senior level staff. Shariah Audit
Meezan Bank has a dedicated and independent
External Training (Customer & Public Shariah Audit function in place to ensure that all its
operations are carried out according to the Shariah
Awareness Initiatives) rules and principles as prescribed by the Shariah
■ Meezan Bank’s efforts towards realizing its Vision Supervisory Board, Resident Shariah Board Member
have led to numerous projects and partnerships (RSBM) and State Bank of Pakistan, as well as to ensure
focused on creating awareness about Islamic that a robust Shariah control system is in place and
banking among different segments of the society. working effectively to mitigate Shariah non-compliance
The Bank arranged 65 seminars on Islamic risks associated with the Bank’s operations. The
Banking in 38 cities of Pakistan which were department is equipped with a large team of Shariah
attended by more than 6,500 participants. Auditors and Advisers certified by AAOIFI. The Bank
has been recognized as ‘Shariah Auditor of the Year’ &
received ‘Shariah Authenticity Award’ by Global Islamic
Finance Awards (GIFA) in 2018.
■ The Bank acted as the Strategic Partner of IBA –

Centre of Excellence in Islamic Finance (IBA-CEIF)
in organizing the 2nd World Islamic Finance Forum
(2018). The forum was attended by around 500 To test the efficiency of Shariah controls, the Shariah
local and international delegates. Audit function mainly focuses on the following areas:
■ The Bank’s staff members conducted various ■ Evaluation and assessment of Shariah control
training programs at IBA-CEIF, National Institute of systems that are in place.
Banking & Finance (NIBAF) and Institute of ■ Eradication of non-Shariah-compliant income, if
Bankers Pakistan (IBP). Meezan Bank’s staff teach any, and evaluation of Shariah-compliant returns.
Islamic banking courses and conduct seminars at
a number of reputable universities across the ■ Support Bank’s staff in learning, developing and
country. refining Shariah skills as a tool to mitigate Shariah
non-compliance risk.
■ In the scholastic field, Meezan Bank also provided ■ Conducting on-site sessions with staff members to
support to Journal of Islamic Banking and Finance enhance their Islamic banking knowledge; training
through contribution of academic and scholarly sessions on ‘How to improve Shariah Audit Rating’
articles/ research papers. are also conducted as a hand-holding activity at
The Bank continued to play a key role in supporting every Region of the Bank.
IBA-CEIF towards the common aim of capacity building
Evaluation of Treasury operations on an ongoing
for the industry and spreading awareness about Islamic
■
basis to assist Treasury in ensuring Shariah
Banking. In this regard, various sessions for banking
compliance in their day-to-day operations
practitioners, Shariah scholars, judges and academicians
were conducted at IBA-CEIF with the support of ■ Conduct quarterly audits of pool management,
Meezan Bank. profit calculation and distribution process in order
to ensure Shariah-compliance in the profit
During the year, students from IBA-Karachi and Bahria calculation & distribution process.
University visited Meezan Bank’s Head Office. They
Continuous improvement through necessary changes
were given presentation on practical issues in Islamic
■
in manual, risk based evaluation methodologies, audit
Banking along with a tour of the Head Office.
programs and checklists to coupe with dynamic
and vibrant Islamic banking environment, products
Two international scholars visited Meezan Bank’s Head and structures.
Office to give their views on different aspects of Islamic
Banking. ■ Placement of an effective Quality Assurance and
review function for enhancing due diligence in the
Meezan Bank is also a strategic partner for Lahore audit processes and procedures.
University of Management Sciences (LUMS) and
Institute of Management Sciences, Peshawar through Islamic Financial Advisory
supporting Islamic Banking related activities and Meezan Bank regularly facilitates banking as well as
sessions organized by these institutes. non-banking financial institutions, including mutual

funds, stock exchanges, Takaful companies and other The Bank gives special attention to the well-being of its
corporate entities, both locally and internationally, in most important asset - its employees, and considers
developing Shariah-compliant products for their them the key to its success.
business needs.
The Bank has worked towards becoming the ‘Employer
The Bank has successfully facilitated the country’s first of Choice’ by attracting, developing, retaining and
electronic Commodity Murabaha transaction through caring for best quality resources and continually striving to
Pakistan Mercantile Exchange (PMEX), Meezan Bank build a dynamic and professionally competent workforce.
served as the only Shariah Technical Services Provider
for the development of this Shariah-compliant trading
platform at PMEX. In 2018, the Bank inducted 1,817 staff members, out of
which 223 were inducted through batch hiring. Out of
total three batches that the Bank induced in 2018, one
The Bank also continues to extend its services to
Bahrain Institute of Banking and Finance (BIBF) through was of Personal Banking Officers and the other two
sharing its expertise, knowledge and experience by were of Branch Services Officers. Extensive training
preparing content for their upcoming AAOIFI courses. was offered to the newly hired officers. The batch hiring
For this purpose, the Bank prepared presentations initiative enables the Bank to develop a regular talent
simplifying the clauses, short case study / practical pipeline for its ever expanding branch network. It also
examples and self-assessment exercises for all AAOIFI enables the Bank to contribute to the society by
Shariah and Accounting Standards. providing employment opportunity to the qualified,
competent but otherwise professionally inexperienced
The Bank also conducted sessions on Islamic finance youth and developing them into professional bankers.
at various prestigious institutions in Turkey including
Borsa Istanbul, Central Bank of Turkey and Istanbul The active recruitment exercises helped in growing the
Sabahattin Zaim University in an effort to demystify Bank’s Headcount by 5.6% in 2018.
Islamic banking and finance and to explore the way
forward for the benefit of Islamic Financial Industry.
Staff Headcount
In the area of Capital Markets, the Bank facilitated its
clients in launching several investment funds and plans 2017 2018
across the year, bringing total funds and plans under Central 2,833 3,078
advisory to more than 60 with a total size of over Rs. 120
Billion. The Bank continues to provide regular support North 1,195 1,196
to Pakistan Stock Exchange (PSX) in maintenance and South 2,295 2,392
re-composition of the two Islamic indices.
Head Office 1,783 1,891
The Bank continues to offers distance learning
programs on Islamic Finance to over 300 professionals
and students through an internally established unit Staff Headcount
‘International Institute of Islamic Bankers’ (IIIB), which is
Pakistan’s first distance learning institute accredited by 14% 36%
Finance Accreditation Agency (FAA), Malaysia.
Human Resources
Meezan Bank believes in building a dynamic and
professionally competent workforce that is fully capable
of providing a world-class banking experience to its
customers. The Bank’s branch network of 660 branches
in more than 180 cities is supported by a workforce of
over 8,557 full-time employees and 1,474 outsourced
staff.
22% 28%
Employees in 2018 Central South Head Office North
10,000
8,557 8,292
The Bank believes in providing career development
8,000
and diversification opportunities to its staff members
such that they may find growth and progress within the
organization. One manifestation of this belief is that the
6,000 Bank gives its staff members a fair and equal
opportunity to apply for vacancies created within the
4,000 organization, through Internal Job Post (IJP).
2,000 During 2018, 75 jobs were filled through internally

sourced talent, while 439 elevations were made across
the Bank at different levels (as compared to 292
0
As of Average during the elevations in 2017). This approach creates a culture of
31st Dec, 2018 year 2018 merit-based career growth within the Bank and is also a
2018
strong enabler in talent retention.

Elevations Shariah Audit Rating, Asset Refresher programs, Deposit
and Consumer Refresher and five days Islamic Banking
500 Orientation.
439
400 A number of programs were conducted during the year

to strengthen the skillset of staff in customer-facing
292 roles. These mainly included Customer Service Skills,
300 AML / CFT, Sales and Product Certification, Wealth
Management, Premium Banking, Account Opening,
200 Branch Operations Refresher and also Islamic Banking.
100
0
2017 2018
Meezan Bank has always been cognizant of the

importance of caring for its employees and their
families. The Bank established an Employee Benevolent
Fund Trust (EBFT) in 2012 for providing financial
assistance to employees for welfare, education and
marriage needs. Establishment of EBFT shows Meezan
Bank’s keenness in achieving excellence in all its
affairs. Such an initiative is rarely seen in the banking
industry and highlights the Bank’s sincerity towards
being an employee-friendly organization.
A testimony to the Bank’s commitment to following

best practices in its HR affairs are the HR awards which
the Bank has won. The Bank was rewarded with
'Recognition Award in Employment Practices' in the
category of Large National Organizations by The
Employers Federation of Pakistan – Pakistan’s largest In addition to the above, the Bank also offered external
forum for employers. learning opportunities to its staff. During the year, 123
external trainings and certifications were provided,
Learning and Development benefitting 480 (374 unique) members of staff. Some of
Meezan Bank’s Learning and Development philosophy the key external trainings and certifications included
consists of providing a variety of learning opportunities Building High Performance Teams, Risk Adjusted
to its staff through in-house, external and international Balance Scorecard, Developing Future Leaders,
training programs. The Bank has three dedicated Master Class in Private Equity, Advanced Certificate in
learning centers located in Karachi, Lahore and AAOIFI Shariah Standards (ACSS), Management
Islamabad and additional training facilities in Development Program and OMEGA CSA.
Faisalabad, Gujranwala, Multan and Peshawar, where
learning programs are conducted throughout the year Leveraging on technology, this year the Bank launched
under an organized learning calendar. In addition to seven E-Learning modules on its Learning Management
class-room-style training, the Bank provides a multitude System (LMS). These included programs on AML / CFT,
of learning opportunities to its staff members through Fair Treatment of Customers, Shariah Knowledge
different channels, comprising of Video conferencing, Booklet, Prevention of Fraud and Forgery, Meezan
Learning Management System, Town Halls, Knowledge Labbaik and Video Training on Information Security.
Sharing Sessions and Mock Branches.
In-House Subject-wise Staff Trained
The Bank conducted a total of 368 in-house learning
programs attended by 10,102 (5,433 unique) participants, 1%
encompassing 656 learning days. In-house trainings 6%
comprise of Induction, On-boarding, Islamic Banking,
Technical, Role-specific, Leadership and Soft Skills 11%
programs.
42%
Induction training is mandatory for all new joiners.

There are two types of Induction training programs:
Orientation Program and Batch Training. The primary
purpose of these programs is to get the new joiners 11%
familiarized with the Bank’s Vision, Mission, Culture, Technical Training
Values, History, and Key Policies / Procedures, etc. Induction

Soft Skill
Islamic Banking trainings are a major element of the Role Specitic
Bank’s learning regime. A total of 42 different Islamic Islamic Banking
Banking training programs were held across the Bank. Awareness Sessior
12% 17%
These programs included five days advanced Islamic Leadership
Finance course, Islamic Banker’s Certification, Improving

External Subject-wise Staff Trained
9%
9%
43%
13%
Technical Training
Conference/Seminar
Islamic Banking
Role Specitic
Soft Skill
13% 13%
Leadership
Operations
Meezan Bank’s Operations department works as a
partner of all business units and is responsible for
end-to-end operations of Retail Banking, Trade Finance,
Credit Administration, Centralized operations, Debit
Cards, Cash Houses, Treasury and Capital Market
operations, Mutual Funds, Reconciliation, SWIFT and
Central Bank Reporting. The primary function of the
Operations department is to ensure that all transactions
are accurately processed in line with Meezan Bank’s
internal policies, procedures and standard operating
procedures (SOPs) as well as Shariah guidelines, SBP
regulations and all related legal requirements. Proper
alignment of operations capabilities with overall
organizational goals and objectives has a significant
impact on business performance, and consequently, on
competitive strength. Cognizant of this fact, Meezan
Bank has developed its Operations function into a strong,
resilient and effective business partner for revenue
generating functions, thus providing the needed impetus
to its efforts of establishing Islamic banking as banking of
first choice.
The Bank has focused on continuous improvement of

policies, procedures and turnaround time (TAT), thus
enhancing operational efficiency and improving effective
utilization of resources. The emphasis has been on
leveraging latest technologies to improve operating
efficiency and staff productivity. The Bank is committed
to making substantial investments to achieve this
objective.

My colleagues in the
Shariah Supervisory Board and
I are extremely pleased that
Alhamdulillah Meezan Bank
has been recognized with the
‘Best Bank’ award-the best not
only among Islamic banks
but all over Pakistan.
Alhamdulillah, this is a big achievement
for Meezan Bank and we are very
happy to know about this.
Justice (Retd.) Mufti Muhammad Taqi Usmani

Marketing & Corporate Communication
During 2018, the Bank launched several initiatives
aimed at re-enforcing its Vision of establishing ‘Islamic
banking as banking of first choice...’, enhancing brand
image and increasing visibility to existing and potential
customers.
Major Initiatives to Support & Promote Islamic
Banking
The marketing campaigns listed below utilized Press,
Radio and Social & Digital Media. This year, Meezan
Bank increased its emphasis on Digital & Social Media
marketing to reach customers using digital videos, posts
and messages to reinforce its message.
The major activities conducted during the year included:
• Best Bank in Pakistan campaign
• Independence Day campaign to highlight the
e Best
importance of getting rid of interest in Pakistan’s
banking system
with th
• Mobile Wallet campaign Bank restigious
Bankin
g Awar d
P
• Government Hajj Application collection campaign Pakistan
’s Most
• Vouch365 discount campaign

• To support the Islamic pages of major newspapers,
Meezan Bank placed a weekly masthead ad on these Follow us
on
pages. A number of corporate and product related

ads for Debit Cards, Current Account, Consumer
Financing, etc. were also placed.
Events & Sponsorships

The Bank sponsored and participated in more than 30 public events nationwide that provided excellent marketing mileage and increased
brand visibility among the general public. Apart from this, the Bank organized more than 30 Area-wise Islamic banking seminars
nationwide to increase awareness and answer questions about Islamic banking.
Ramadan Cards
The Bank continued to distribute Ramadan cards to highlight the importance of this holy month.
The Bank also conducted the following

activities exclusively on Digital & Social Media:
• Ramadan campaign based on balance of life

• Blessed Friday Shopping campaign
• Over 20 product-focused campaigns on social media
for Home Remittance, Kafalah, Consumer Ease,
Meezan Express Account, Bike Ijarah, Car Ijarah,
Easy Home etc.
• International Day of Disabled Persons campaign
• Educational video on the difference between Islamic
and Conventional Banking
• Educational video on the difference between Islamic
and conventional car financing
• Live coverage of World Islamic Finance Forum (WIFF)
• Consumer Financial Protection Framework campaign

MEEZAN BANK’S SOCIAL MEDIA
FOOTPRINT
FOLLOWERS
More than
74,800 LIKES
GROWTH Over
90% 1.86m
Largest fan base
since 2017 in Pakistan’s banking industry
The highest number of
followers amongst all banks
in Pakistan
18 th
in World’s
Top 100 Banks on Facebook
by The Financial Brand
FOLLOWERS
More than
4,900
GROWTH
40% SUBSCRIBERS
since 2017
More than
Over FOLLOWERS
6,500 More than
GROWTH 18,900
194%since 2017 GROWTH
First dedicated
Islamic Banking Channel
78% since 2017
in the country The highest number of followers
amongst all banks in Pakistan
Corporate Social Responsibility
Meezan Bank believes in creating value for its stakeholders and society simultaneously, in a manner that is integrally
linked to its values and the Islamic principle of Ihsan. The Bank recognizes that it is part of the community at large and
that there is a strong need to contribute to the society. Throughout 2018, the Bank partnered with various organizations
to design and implement initiatives, primarily in the healthcare and education sectors, to benefit the society.
Some of our most recent and most ambitious projects are mentioned below:
Education scholars, government officials and parliamentarians in

collaboration with Centre for Islamic Economics (CIE),
Employee Volunteering for TCF Rahbar
Meezan Bank and Takaful Pakistan.
– Youth Mentoring Programme
The Citizens Foundation (TCF) is one of Pakistan’s leading Idara Al-Khair Welfare Society
non-profit organizations in the field of education for the less Idara Al-Khair Welfare Society is a non-profit private
privileged. The Rahbar Programme forms part of the many organization which has been working for the cause of
volunteering initiatives of the organization, and is designed education for the last 30 years. During 2018, Meezan Bank
specifically for eighth and ninth grade students of TCF with signed an agreement with Idara Al-Khair to support the
an aim to mentor the youth to become responsible and school - Campus VI Yaroo Goth, Karachi, that is currently
productive members of the society. providing free education to 400 children. The Bank has
provided financial assistance to the Campus, playing a key
role in spreading education in hard-to-reach and
under-privileged areas that are currently not fully covered
by the country’s education system. The initiative forms part
of the Bank’s Corporate Social Responsibility efforts aimed
at supporting education equality for all.
Meezan Bank supported this mentoring program, which is

driven by ‘Thought to Destiny’ theme, whereby Bank
employees voluntarily mentored TCF students by
dedicating six Saturdays for Rahbar in 2018.
Centres for Excellence in Islamic Finance at Lahore Healthcare

University of Management Sciences (LUMS), Institute
of Business Administration (IBA) and IM Sciences The Indus Hospital
(Peshawar) Since its inception in 2005, The Indus Hospital (TIH) has
Lahore University of Management Sciences (LUMS), been running an unparalleled and unique healthcare
Institute of Business Administration (IBA) and IM Sciences business model, whereby it provides premium healthcare
(Peshawar) are among Pakistan’s leading private sector at no cost at all to low income populations. The Bank, in
educational institutions. Meezan Bank entered into addition to hosting collection boxes at all branches has
cause-related partnerships with these institutions in order taken the following initiatives as part of its CSR activities:
to help foster the learning and development of Islamic
banking and finance across the country by supporting their Blood Donation Drive
newly established Centres for Excellence in Islamic Since 2014, the Bank is supporting TIH through
Finance. With an altruistic motivation to support the cause successful voluntary Blood Donation Drives at its Head
of Shariah-compliant banking services and increasing the Office located in Karachi. This year, the Bank held a
awareness of Islamic finance, Meezan Bank worked closely blood donation drive with the objective of encouraging
with these institutes to facilitate development and launch of people to donate blood. Staff members from Head Office
training programs on Islamic banking and finance and and branches participated in this activity with great
co-author case studies and research papers. Meezan enthusiasm. In addition to proper screening for blood
Bank’s employees also participated as guest speakers in donation, the staff members were also screened for
several executive programs at these educational institutions. various diseases including Hepatitis and other infectious
This contribution plays an instrumental role in the promotion diseases for free.
of ethical practices across the country, as the Bank aims to
equip students and executives with adequate Islamic TIH Golf Fundraiser
knowledge as well as professional skills. These Meezan Bank, with its aim to support quality healthcare
partnerships have proven to be a great success and for all segments of the society, supported The Indus
during 2018, around 900 students were trained at IBA Hospital in its Golf Fundraiser, held at Karachi Golf Club.
Centre for Excellence in Islamic Finance. The institute also The event engaged more than 100 golfers and top CEOs
held a number of Islamic banking awareness sessions for of several organizations. TIH Karachi is expanding from

150 beds to 1,800 beds to help continue providing free Sindh Institute of
quality healthcare to all. This fundraiser not only helped Urology Transplant (SIUT)
create awareness about the philanthropic activities of Sindh Institute of Urology Transplant (SIUT) is one-of-
TIH, Karachi, but also helped collect voluntary financial its-kind center for kidney transplantation in Pakistan and
support to expand the number of beds in the hospital. has been providing free medical treatment for kidney and
liver diseases to patients, predominantly from the rural and
TIH Brick for Life poor urban strata with virtually no access to medical
The steady increase in patient numbers at The Indus facilities. SIUT’s extensive facilities, which house
Hospital in Karachi has highlighted the urgent need to state-of-the-art equipment, enable it to provide free
expand the facility to be able to serve more people with treatment to Pakistanis.
free of charge and quality healthcare. With an aim to
support this expansion, Meezan Bank and its employees Meezan Bank contributed to SIUT by raising awareness
contributed to the TIH ‘Brick for Life’ initiative by donating amongst its customer population through information
bricks worth Rs 500 each. The event was held at the leaflets and banners strategically placed within its
Bank’s Head Office, Karachi, inviting participation from branches.
the entire Meezan Family.
Behbud Association Karachi
Behbud Association Karachi is a registered non-profit
organization, working for over 50 years, focusing on
poverty alleviation and empowerment of underprivileged
and marginalized communities through interventions in
education, health, vocational training, income generation
and disaster relief. Meezan Bank sponsored Behbud
Association Karachi in holding the Behbud Spring
Fiesta, Karachi. The event aimed to raise funds for
Behbud’s development projects and charitable activities,
encompassing education, health and vocational training
for the empowerment of women.
AKU Charity Golf Tournament for

Paediatric Congenital Heart Programme
One in every 100 infants born in Pakistan each year has a
cardiovascular disease, resulting in the death of many
babies without any diagnosis. In an effort to raise
Layton Rahmatulla Benevolent Trust
awareness regarding this issue and its adequate
(LRBT) Golf Tournament 2018
diagnostic and treatment, Meezan Bank participated in the
Layton Rahmatullah Benevolent Trust (LRBT) is Pakistan's
AKU Charity Golf Tournament for Paediatric Congenital
largest non-governmental organisation working to fight
Heart Programme – an event organized at Karachi Golf
blindness in the country. Established in 1984, it is based in
Club to fund additional 100 life-saving paediatric cardiac
Karachi with hospitals and primary eye care centres
procedures.
throughout the country. Meezan Bank participated in the
LRBT Golf Tournament 2018, held at the Karachi Golf Club.
This was the second charity golf tournament held by the
Tree Plantation Drive
During 2018, Meezan Bank formally launched its green
organisation to raise funds for the treatment of Cataract,
initiative, a tree plantation campaign in an attempt to
Glaucoma, retinal and corneal diseases among
counter the twin threats of climate change and pollution
underprivileged children and adults who cannot afford the
facing the country. The tree plantation campaign forms
treatment.
part of the Bank’s Corporate Social Responsibility
programme under which over 5,000 trees were planted
Shaukat Khanum Memorial
across the country.
Cancer Hospital (SKMCH)
Shaukat Khanum Memorial Cancer Hospital (SKMCH) and
Research Centre has established itself as a centre of
excellence providing comprehensive care, free of cost, to
thousands of cancer patients in Pakistan.
Meezan Bank first joined hands with the SKMCH in 2010,

when an MOU was signed, as per which the Bank has
placed collection boxes in all Meezan Bank branches in
Sindh and Balochistan. Under this agreement, the
collected amount is directly deposited to the hospital’s
main collection account through Meezan Bank’s free online
banking service. This initiative has shown extremely
positive results as the collection from these boxes has
increased significantly, especially in those areas where the
hospital did not have prominent presence or donation
collection channels.

Donation for Diamer-Bhasha and
Mohmand Dams
Meezan Bank continues to collect donations and
contributions for the Diamer-Bhasha and Mohmand Dams
through its nationwide network of 660 branches as well as
ATMs, internet banking and mobile banking channels, in
accordance with the directives of State Bank of Pakistan. In
addition to a one-day voluntarily salary contribution from its
employees, the Bank also made an equivalent donation to
the Diamer-Bhasha and Mohmand Dams Fund, reaffirming MEEZAN BANK
its commitment to Corporate Social Responsibility and IS THE FIRST
pitching in for this national cause. ISLAMIC BANK
IN PAKISTAN
TO INTRODUCE
SHIRKAT-UL-AQD
BASED FINANCING
PRODUCT:
RUNNING
MUSHARAKAH
Meezan Bank is the first Islamic bank in Pakistan to introduce a
Shirkat-ul-Aqd based financing product named Running
Musharakah. This is a financing facility offered to the customers
where the Bank participates in the operating activities of the
customer and shares profit and loss as per the actual
performance of the business. During the year 2018, the Bank
partnered with more than 170 companies ranging from
manufacturing to the service sector, on the basis of profit and loss
sharing.
Running Musharakah was launched at Meezan Bank in 2011 with
a portfolio of Rs 0.75 Billion, and with the continued efforts of the
Bank, it now stands at Rs 158.86 Billion. The Bank ranks among
the top banks globally in terms of percentage of financing
Charity Funds Management through Shirkat-ul-Aqd based mode.
through Ihsan Trust Running Musharakah Portfolio Over Time

Meezan Bank has a social purpose culture that focuses on Rs. in Billions
applying its principles and values in areas where they 200
create a positive impact on people and communities. The 145.91

158.86
Bank has adopted stringent Shariah Compliance and

150
Shariah Audit standards that allow it to screen all income

100
and in case of any non-compliance, to transfer the same to 78.3
a charity account. During 2018, the Bank supported a 50 48.34
number of NGOs and philanthropic organizations including 28.73
Omair Sana Welfare Foundation, The Indus Hospital,

10.35
0
Alamgir Welfare Trust, Afzaal Memorial Thalassemia 2013 2014 2015 2016 2017 2018
Foundation, Bait-Us-Salam Welfare Trust, The Citizens

Foundation, Patients Behbud Society, AKUH as well as
REGULATION OF ISLAMIC BANKING INDUSTRY
Diya Pakistan.
BY THE STATE BANK OF PAKISTAN
State Bank of Pakistan regulates the Islamic Banking industry
As an extension of the same initiative, Ihsan Trust was through a separate Islamic Banking Department, which
regulates the industry through its own policies, regulations and
launched as the operator of Ihsan Trust Fund which is a guidelines in order to ensure Shariah-compliance in Islamic
‘Waqf’ made through a separate Waqf deed. Meezan Bank Banks.
is the biggest supporter of Ihsan Trust, supporting the Islamic Banking Department of the State Bank of Pakistan works
organization through its human resource and other utility- under its Shariah Advisory Committee comprising of renowned
and reputed Shariah Scholars including Mufti Irshad Ahmad
related expenses. Ihsan Trust is the largest interest-free Aijaz, Dr. Noor Ahmed Shahtaz and Ayatullah Shabbir Hasan
loan provider for higher education in Pakistan that reaches Lakhani (Maisami). Some of the key regulations under which
out to the under-privileged sector of the society to help Islamic Banking industry operates are:
such individuals escape the cycle of poverty that they are ■ Shariah Governance Framework for Islamic Banking
Institutions – 2018
stuck in. The Trust provides Qarz-e-Hasna (Interest-free
Instructions for Profit & Loss Distribution and Pool
loan) facility to students who want to pursue higher ■
Management for Islamic Banking Institutions – 2012
education. More than 2,200 students from 125 universities, ■ Guidelines on Islamic Financing for Agriculture – 2008
educational institutions and professional bodies across ■ Risk Management Guidelines for Islamic Banking Institutions
Pakistan have benefited from this facility since its – 2008
inception, including Institute of Business Administration ■ Guidelines for Islamic Microfinance Business by Financial
(IBA), Ghulam Ishaq Khan Institute of Engineering Institutions – 2007
Sciences and Technology (GIKI), COMSATS University ■ Six AAOIFI standards adopted by State Bank of Pakistan.
AAOIFI is the premier standard setting organization for
Islamabad, FAST National University, National University of Islamic Financial Institutions globally
Sciences and Technology (NUST), DOW University of
Health Sciences (DUHS) etc.

Sustainability Report
As Pakistan’s leading Islamic Bank, Meezan Bank believes in playing a prominent role in contributing to the United Nations
Sustainable Development Goals (SDGs). With a key focus on responsible growth as well as its environmental, social and
governance impact, the Bank aims to develop and implement sustainable business practices that fully meet the
expectations that the society has from responsible corporate citizens. Meezan Bank's consciousness of its responsibility
towards society and stakeholders is also expressed in its Vision and Mission statements.
Stakeholders Institutional Investors

Meezan Bank holds regulatory and internal meetings
with its Institutional Investors in the form of Board of
Directors meetings and Board Committee meetings,
which are planned and announced on a periodic basis.
Shareholders
Shareholders’ engagement is ensured through Annual
Meezan Bank’s General Meeting held every year, which all
shareholders are invited to attend. This meeting
Stakeholders provides the shareholders an opportunity to interact
with the Bank’s senior management and share their
suggestions, concerns and views.
Customers & Public
Meezan Bank's customers include individual and
Shareholders, corporate depositors, large corporations as well as
represented by the Board small & medium enterprises. The Bank ensures that all
of Directors customer segments are engaged through numerous
Customers: Retail, forums and via multiple channels. To achieve this, the
Corporate, Consumer and
Commercial Banking
Bank regularly conducts a number of activities during
customers the year for its customers as well as the general public,
such as Islamic banking seminars, workshops, local
Depositors
get-togethers on new branch openings and occasion
based activities.
■ Islamic Banking Seminars & Workshops are a
series of free Islamic banking education initiatives
Regulators (Government)
that are conducted across the country on a regular
Employees basis in order to enhance awareness and dispel
common confusions about Islamic banking.
Business partners:
Suppliers & Service
Developed in partnership with the Bank’s leading
Providers Shariah finance experts who break-down Islamic
finance topics into approachable and tailored
content; the seminars help individuals understand
the concepts of Islamic finance and thereby
promote the cause of Islamic banking as a whole.
Peers: The Islamic banking seminars and workshops are
Other financial institutions
(Islamic as well as conventional) open-to-public local events that are attended by
residents and traders of the locality as well as
Trade Associations members of local trade bodies and chambers. The
Opinion-formers: seminars also give the Bank an opportunity to
Journalists, special interest interact, understand and get feedback from
groups, public via multiple customers for further improvement of products and
communication
channels services. In 2018, around 65 Islamic banking
seminars and workshops were conducted
nationwide across 38 cities that were attended by
Meezan Bank's stakeholders are the people and more than 6,500 participants.
organizations that affect or are affected by its
operations. The Bank’s commitment to its stakeholders
is central to its sustainability strategy and reflects the
values that allow it to create shared success with its
clients, communities and other stakeholders.
Stakeholder Engagement
Stakeholder relationships are long-term relationships
which should be handled professionally and with
sincerity. Meezan Bank engages its stakeholders
through numerous channels, while maintaining focus on
its Mission to optimize stakeholders' value through an
organizational culture based on learning, fairness,
respect for individual enterprise and performance.

■ Branch Opening Events offer another opportunity ■ Staff Get-togethers
where all staff members of a new branch meet the The Bank supports a culture of valuing and
residents and businessmen of the locality. This appreciating its staff and makes efforts to ensure that
event adds value by giving a jump-start to the the quality of working relationships is improved
business activities as well as giving the potential through regular interactions in the form of staff
customers an opportunity to meet the new branch gatherings at both local and regional levels. Keeping
team and develop a better understanding of Islamic up with the aim of finding an improved fit between
banking, and the products and services that employees needs and organisational benefits, the
Meezan Bank offers. senior management team held multiple on-site and
off-site Strategy Sessions. The meetings, in addition
■ Independence Day Celebrations are hosted to providing a venue for exchange of creative ideas,
across the country including the Bank’s Head also proved to be an effective team-building
Office, Branches and Regional Offices. Customers initiative.
are invited with their friends and families to visit their
branch and interact with branch staff. These events To acknowledge the efforts of the team members, a
further emphasize the inculcation of positive image Service Conference was organized in Murree, which
building in our children and also give Meezan was the third iteration of this initiative. During this
Bank's staff the opportunity to connect with conference, key achievements were acknowledged
customers and their families, hence strengthening and new benchmarks of service quality excellence
their relationship. This year, in addition to branch- were set for the future.
wide celebrations, the Bank hosted a Family
Get-Together for its staff stationed at the Head This year, the Bank also held a Retail Banking
Conference followed by a recreational picnic to
Office.
Churna Island, Karachi, in recognition of the hard
work and dedication employees bring to the Bank
every day.
Employees
Critical to fostering sustainable growth and
development is the Bank’s focus on investing in its ■ Board’s Policy on Diversity
employees and providing them with an environment As an equal opportunity employer, Meezan Bank
where they can thrive. Considered as Meezan Bank’s emphasizes the need for diversity in the work place.
most valuable asset; the Bank provides its employees The Board of Human Resources & Remuneration
with an inclusive environment that provides them with Committee (BHR&RC) has encouraged the Bank to
multiple growth opportunities, recognizes and rewards implement gender initiatives which encourage and
their performance and supports them in ensuring their support female employment. In line with the same
financial, physical and emotional wellness. approach, the Bank increased its total number of
female employees from 633 in 2017 to 716 in 2018.
Meezan Bank uses various means to ensure that its
employees stay motivated and committed to the cause ■ Recruitment & Succession Planning
of Islamic banking and are groomed into better Meezan Bank aims to strengthen its capabilities and
professionals as well as productive members of the secure customers primarily through recruitment of
society. Some of the initiatives undertaken by the Bank skilled professionals. The Bank believes that a
for its staff are: sustainable and resilient organizational hierarchy
forms the foundation for sustainable growth. The
Appreciation of Achievements
Bank develops sustainable policies for retaining and
■
Academic and professional achievements are managing human capital at the Bank. Given the rapid
milestones in an individual's career. Meezan Bank expansion of the Bank, the Board of Human
acknowledges the outstanding performance of its Resources & Remuneration Committee (BHR&RC)
team members in order to boost employee morale made recommendations to the Management for the
and create a positive work environment. The Bank implementation of an effective Succession Plan.
recognizes its employees and teams via internal
email circulations and publication in quarterly The recruitment process is transparent and is
newsletter. It also follows the practice of making the detailed in the Human Resource Manual accessible
published research work of its employees available to all staff via the Intranet. Meezan Bank uses, where
to all staff in electronic form. Additionally, the Bank applicable, all available media for job advertisement
distributes Service Awards on yearly basis to staff as part of its recruitment process, including the
members who complete five and ten years of service. Bank's corporate website, social media channels -

Facebook, Twitter & LinkedIn, and print advertising in company-funded Employee Benevolent Fund Trust
prominent local newspapers. (EBFT) that allows eligible employees to seek
financial support for themselves and for their families
The Bank's management encourages existing during difficult times.
employees to apply for vacant positions to allow staff
to grow professionally. Towards this end, internal Nature of Approved EBFT Cases
searches are conducted to fill vacant slots within the The Bank processed a total of 208 cases during the year 2018,
organization as well. In 2018, the Bank recruited staff out of which 177 cases were approved.
through batch hiring across the country for the
positions of Branch Service Officers who are 120
responsible for managing day-to-day operational 103
tasks in the branches. All the batches were hired 100
under a transparent and merit-driven process. 80
The Bank held 19 induction sessions through 60
49
participation in Job Fairs held at different cities
40
across Pakistan including Karachi, Lahore, Multan,
Quetta, Mirpur and Islamabad to benefit from the 20
13 12
entourage of competent and capable young
0
individuals. Medical Marriage Education Others
■ Provision of Accelerated / Advance Bonus

Under the accelerated bonus concept, the Bank
facilitates its employees through provision of
advance bonus opportunity that allows them greater
financial freedom. In addition, the Bank’s pay-for-
performance philosophy extends to Saturday
Allowances for branches, paying eligible employees
with additional wages for any additional hours they
put in.
Internal & External Communication Channels
The Bank disseminates information about its various
achievements, activities and initiatives to the external
world by engaging the internal staff and external
stakeholders through the Annual Report, regular Press
The Bank also ensures implementation of the Bank's Releases, publication of the quarterly newsletter-
Succession Planning Policy. The policy and PAGES, direct customer communications such as SMS,
procedure for design and implementation of customer letters, e-statements, emails and through
succession planning is anchored by the Bank’s top social media channels. The Bank also engages
management and facilitated by the HR team. customers by arranging its visibility and accessibility on
Successors are identified on the basis of their public discussion forums, seminars as well as electronic
potential as well as their performance and & print media.
experience.
■ Employment of Special Persons

Meezan Bank operates under its corporate
philosophy of providing merit-based support to
people with disabilities, providing them with
livelihood and self-reliance opportunities. The Bank
Green IT: Introducing Energy
has hired people who face challenges such as lack Efficiency at work
of speech, visual impairment, inadequate or no
hearing and physical deformity. These persons have In line with United Nations Sustainable Development
been placed on jobs where they can be productive Goals, Meezan Bank is working to reduce its energy
despite the challenges they face. footprints through better usage of its information
technology and communication infrastructure. Some of
■ Employee Benevolent Fund Trust (EBFT) the key initiatives are as follows:
Meezan Bank has always been on the forefront of
providing its employees with the best opportunities to Use of Technology to Reduce Business Travel
realize their potential. This forms part of the Bank’s Meezan Bank has invested in the installation of
commitment to make it a great place to work. As an high-quality video conferencing facilities at all major
extension of this philosophy, the Bank realizes its offices across the country, an initiative that has efficient
responsibility towards its employees and their usage in trainings, meetings, interviews and
families, encouraging a culture of respect and care. conferences. As a result, video conferencing has
The Bank’s Human Resource policies are dedicated become a sensible alternative to business trips and has
to supporting employees during major life events. In reduced the Bank’s volume of business flights
addition to providing an extensive healthcare considerably. Over the last few years, the Bank has
coverage to help meet the expenses of employees; managed to not only reduce its overall travel costs but
the Bank also has a joint employee and also reduce its contribution to aviation emissions.

Encouraging Paper-free Environment Account Opening (CAO) Workflow to streamline the
The Bank is striving to improve its work efficiency, document movement between branches and Head
control operating expenses as well as make its Office. It includes digital archiving of account opening
contribution towards reducing deforestation by form and documentation and introduction of paperless
reducing the use of paper for photocopying and environment through electronic account opening form.
printing. The following steps have been taken towards This has resulted in savings of both cost and time and
this end: has increased overall efficiency.
■ Implementation of electronic process flows for
certain HR-related processes
Learning & Development
■ Implementation of an electronic IT help-desk and Staff Training
document repository system Meezan Bank offers an extensive range of training
opportunities to employees for their professional
Introduction of an eco-printing campaign at work
development. Training includes technical training
■
by introducing dual-sided printing across the

courses and workshops as well as specialized soft skills
organization
trainings.
Implementation of a tracking system for photocopied
The internal learning programs are managed under
■
documents made at the Head Office. This system

■
an organized learning calendar through a large pool

enables the Bank to manage and control the
of internal trainers whereas externally offered
wastage resulting from photocopies.
opportunities are used for developing and
enhancing specialized technical as well as soft skills.
Increasing Energy Efficiency through a
Next-Generation Data Center
Meezan Bank’s implementation of state-of-the-art Data
Center has helped the Bank to deploy more efficient
remote working technologies, while also double the
utilization of its existing hardware. The Bank is also
currently working on increasing the energy efficiency in
its Data Center to promote a more sustainable and
eco-friendly infrastructure.
Conducting Online Employee Satisfaction Survey

This survey is an on-going practice and is conducted
regularly on an organization-wide basis to gauge
employees’ level of job satisfaction. Recently, the Bank
undertook the initiative of conducting the Survey online, ■ The Bank has mock branches in Karachi, Lahore
in an effort to reduce the eco-impact of paper. The and Islamabad which enable the staff to get trained
initiative not only serves as an opportunity to engage in a simulated branch environment and equip them
the employees but also encourages their inclusion with the practical elements of their day-to-day core
through an ‘online’ methodology that increases banking systems related to work. The mock branch
participation. The switch to online technology has also in Karachi is also equipped with an ATM for
enabled the Bank to provide error-free direct input and hands-on ATM-related trainings.
data analysis.
■ Keeping up with the Bank’s aim of encouraging
workforce development through a multitude of
Implementation of the Bank’s Intranet Portal learning opportunities, Guest Speaker Sessions
Meezan Bank became the first bank in Pakistan to have been initiated for employees as well as Senior
launch a comprehensive intranet portal - Meezan Management so they may get key insights from
World, based on the latest platform of IBM WebSphere some of the most renowned industry experts and
and IBM Connections. The portal has the capacity to accomplished professionals and businessmen. The
build workflows, facilitate project and document initiative has received a very favourable response
management, initiate discussions and also serve as from the audience and has helped broaden the
Business Continuity Planning tool, allowing employees intellectual horizon of the audience.
to work from any Meezan office, in case of an
emergency. Enhancing Employee Capacity
Meezan Bank is also keen to inculcate a learning
Implementation of State-of-the-art T24 software culture by encouraging staff to obtain additional
The Bank has a state-of-the-art T24 software to shift qualifications for their development. IBP Superior
from paper-cheque payments to electronic payments. Qualification (ISQ) Exams is one such certification that
The software serves as a gateway for multiple banking is regarded as an esteemed qualification for bankers.
services including treasury, electronic payments and Meezan Bank motivates its employees to acquire
foreign exchange transactions, apart from managing ISQ-Junior Associate Program of Institute of Bankers
multiple payment channels including ATMs, Internet Pakistan (JAIBP) through a highly attractive incentive
banking, mobile banking and others. structure based on cash rewards, salary increment as
well as reimbursement of registration and course fees.
Implementation of Centralized Account Opening
Workflow Women on Key Positions of the Bank
Due to growth in branch network and future expansion Meezan Bank is an equal opportunity employer and
plans, the Bank strategically implemented Centralized there are females on many key positions of the Bank

including Branch Banking, Product Development, opportunity to many ambitious women who want to
Finance and Support functions such as Training and contribute to the cause of Islamic banking while
Communication. maintaining a balance with their responsibilities at
home. Launched in 2015, this facility has been warmly
Health & Recreation welcomed by employees and till date, twelve children
have been enrolled successfully.
Meezan Bank demonstrates a strong commitment to
improving the health and well-being of its employees
through a workplace wellness program that not only
focuses on providing a pleasant working environment to
its staff but also encourages participation in healthy
activities during the workday. The Bank believes in
promoting a healthy lifestyle for its employees to create
a healthier, more productive workforce. The following
efforts evidence the Bank’s commitment to adopting
healthy habits and in making this organization an
excellent workplace.
Medical Benefits & Health Facilities
The medical assistance benefits give peace of mind to
employees and enables them to focus on their
professional responsibilities without having to worry
about financial risks in the event of a medical problem.
Hospitalization coverage therefore forms an integral Company Sports
component of the total compensation package offered Meezan Bank organizes a variety of sports activities for
by Meezan Bank. In keeping true to its stated its employees. Cricket, a national favourite, is promoted
compensation philosophy of offering a balanced and within the organization and financial industry through
competitive remuneration package for attracting and participation of the Bank's cricket team in local cricket
retaining talent, the Bank has instituted outpatient, tournaments. The Bank regularly organizes cricket
hospitalization and maternity benefit plans for its tournaments for inter-department, inter-branch and
employees by providing coverage for these inter-region teams that travel and compete within the
eventualities. country.
Gym & Swimming Pool
The Bank encourages a healthy lifestyle for its
employees by providing both male and female
employees access to independent and modern
gymnasium facilities and separate recreational areas at
Meezan House along with a 1,200 sqft swimming pool.
The facilities are supported by specialized swimming
and fitness trainers to assist the staff in their exercise
and diet routine.
Cafeteria at Subsidized Cost

The Bank also provides hygienically cooked meals at a
subsidized cost to its staff at the Head Office; which is
prepared in an on-location kitchen. The staff is also
provided with multiple tea and coffee areas for
refreshments throughout the day.
Safety Measures
Employees
The Bank has invested in protecting its employees
through the following means:
■ Medical and Life Takaful coverage
■ Shuttle transportation with security at subsidized
cost for travelling to and from Meezan House (Head
Office)
■ High-tech security systems and security guards are
deployed at the Bank's premises
■ A well-designed fire fighting system, with availability
Day Care Facility for Working Parents of trained fire fighters at the location
In order to facilitate working parents at Meezan Bank, a ■ Regular fire and evacuation drills, that are
Day Care facility is available at its Head Office located conducted to help employees become aware of the
in Karachi. Equipped with all the key requirements, this safety steps in case of an emergency. The Bank has
facility caters to children aged two months to three trained and assigned a team to provide assistance
years. The child-friendly environment gives an to staff in the case of a fire or natural calamity.

various channels are logged in a Complaint
Management System to keep track of their resolution.
The Bank has a complaint escalation mechanism
whereby all complaints are escalated to the senior
management if not resolved within the stipulated time.
During 2018, the Bank upgraded its Complaint
Management System by implementing a system of
acknowledging complaints through automated SMS
which resulted in process automation of complaint
management. In addition, the Bank enhanced its
complaint monitoring mechanism by introducing
Complaint Management Dashboard which is regularly
reviewed by the senior management to ensure timely
resolution of customer complaints. During the year, the
Customers Bank received 65,303 complaints and the average
Safety measures have been taken to protect customers complaint resolution time was 5.6 working days.
using ATMs and other ADC channels by implementing
the following: Environmental Sustainability
■ Installation of locks and cameras in all ATM rooms Reducing Environmental Impact of Business
with 24 / 7 recording Activities
Anti-skimming devices have been installed on all In an effort to reduce the overall impact of its business
activities on the environment and to minimize
■
ATMs
greenhouse gas emissions, Meezan Bank actively
■ ATM-safe-usage-guidelines are displayed on all employs initiatives to reduce emissions from its
ATM screens for customers before they undertake a operations, daily activities as well as employee travel.
transaction Some of our most noteworthy initiatives, including
Meezan Internet Banking website is encrypted with reduction in direct and indirect energy consumption are
mentioned below:
■
256 bit encryption two-factor authentication for

funds-transfer transactions on Internet Banking Energy Conservation through Re-Designed
■ Recording of all customer calls to the Call Centre Branch Signage
An integral part of Meezan Bank's branding is its
■ IVR Transactions are secured via a separate branch signage which is the most commonly visible
Telephone Banking PIN (T-PIN) image of the Bank. The Bank has redesigned its
■ Meezan Bank's SMS alerts service keeps the branch signages using new LED lights. After the
customers constantly updated of any activity (Debit redesigning, the overall energy consumption has
or Credit) in their account reduced by approximately 60% compared to the
previous design which used incandescent
Selection of Business Partners tubelights. Keeping in mind that the Bank has 660
Meezan Bank ensures that its business partners are branches across Pakistan; this contributes
selected and approved through a detailed review and significantly in reducing the overall energy
selection process. The Bank's procurement team is consumption by the Bank.
empowered to finalize the best supplier and service
provider based on quality, costing, historic Energy Conservation through Energy-Efficient
performance and market reputation. The process is Office Building Structure
reviewed by the Internal Audit team to ensure Meezan Bank constantly takes energy-saving
compliance to the approved internal processes as well measures at its Head Office. The Head Office
as market norms. building has been constructed using glass panels
and atriums which allow natural light to come in
Service Quality Monitoring throughout the day, thereby almost eliminating the
need for artificial lighting in large sections of the
Meezan Bank has Pakistan's largest Islamic banking
building during working hours. The energy-
branch network of 660 branches in more than 180
conserving centralized cooling system also
cities. The branches work under defined operational
contributes to reduced electricity consumption in
procedures which are constantly reviewed and
the office building.
monitored by concerned departments including the
Service Quality Department (SQD). A dedicated team of
SQD is in place to review branch services and to
support branch staff in ensuring delivery of quality
banking experience to its customers. Furthermore,
branches are encouraged to improve their Service
Quality ratings through continuous coaching as a result
of which their efforts are recognized through Service
Champion Awards.
Complaint Management System

The Bank has a dedicated team which handles and
addresses customer complaints as per the Customer
Grievance Handling Policy approved by the Board. All
complaints of the customers that are received through

Minimizing Carbon Footprint through Shuttle financial risk coverage to its deposit account holders
Bus Service and consumer finance customers:
At Meezan Bank, we embrace the idea of minimizing ■ Takaful Coverage for ‘Accidental Death and
our environmental impact through continuous Permanent Disability’ and ‘ATM Cash Withdrawal
development of our internal processes. In pursuit of Theft’ to all checking account holders who are
the same aim, the Bank provides its Head Office maintaining an average monthly balance of
staff with a secure pick-and-drop facility that is Rs 10,000/- or more.
currently being availed by almost 50% of the Head
Office staff. The initiative has helped the Bank to ■ The critical need of Life Takaful Coverage has been
minimize use of personal transport, effectively addressed for Housing Finance customers by
curtailing fuel consumption as well as increasing providing a completely Shariah-compliant Life
staff convenience and motivation. Takaful cover. In the event of death of a customer,
the Takaful benefit covers the outstanding amount
Maintaining Sustainable Banking Operations payable to the Bank. The Takaful cover is also
The Bank has an extensive network in more than 180 available in case of customer's natural or accidental
cities across the country and strives to construct, disability. The Life Takaful cover provides great
manage and upgrade its facilities with sustainability comfort to the Bank's Housing Finance customers
and improved efficiency as its guiding principles. as well as to their family members.
From various energy conservation efforts to the The Bank's Auto, Bike and Commercial Vehicle
implementation of smart business practices, the
■
Finance operates under the Ijarah model, in which the

Bank is now working towards increased awareness Bank takes responsibility for comprehensive Takaful
among its stakeholders to address and to minimize coverage of the vehicle over the complete financing
the social and environmental impacts of its period. The Bank also offers an additional facility of
operations. Some of these include: tracker with free monitoring and Accidental Death
■ Installation of LED lights at the entire Head Office Coverage to the customers of Consumer Car Ijarah.
building to reduce electricity consumption
■ Deployment of energy efficient ATMs as part of the Business Ethics &
Bank's focus on providing technologically
advanced facilities to its customers along with Anti-Corruption Measures
reducing the usage of diesel and electricity Meezan Bank has a comprehensive Code of Conduct
■ Installation of multi-function printer / photocopier and Standard of Ethics that forms part of its Human
machines that allow decommissioning two Resource Policy. The Bank's Disciplinary Action
devices, a laser copier and a scanner, resulting in Committee (DAC) takes action on any violation of
elimination of separate machines and reduction of policies & procedures, acts of fraud & forgery,
overall paper consumption breaches of discipline and code of conduct, ethics &
business practices, law of the land and any statutory
■ Implementation of dual-side printing initiative regulations by an employee. Appeals of the staff
across the organization that will reduce paper against which DAC takes disciplinary actions are
usage to a significant extent reviewed by an independent Disciplinary Action Review
■ Minimizing Carbon emission through a large Committee, which has been formed with a view to
plantation section at the Head Office that utilizes ensure a fresh review of each appeal filed against the
recycled ablution water from the in-house mosque DAC decision. Furthermore, to ensure dignified and
healthy work environment, the Bank has also
Green Banking established an Anti-Harassment Committee that deals
with the instances of sexual harassment reported either
Meezan Bank is committed to driving growth for green verbally or in writing.
banking initiatives and is therefore continuously
exploring opportunities to support and finance
environment friendly projects as its contribution towards Rural Development Program
making our planet more sustainable. A comprehensive Considering the importance of agriculture for the
‘Green Banking Policy’ in line with the instructions and country and inherent market potential for agriculture
guidelines of the State Bank of Pakistan has been duly finance, Meezan Bank has established a dedicated
approved in the Board Meeting of the Bank that outlines Agricultural Finance Department. There has always
the compliance measures to be put in place to ensure been a great demand from rural households to have
smooth and transparent operations of the Bank. The Islamic financing products. Meezan Bank Agri Finance
Board of Directors has also implemented a Policy is set to further enhance outreach with the induction of
Framework that delineates broader guidelines to the dedicated team of agricultural graduates from Punjab,
management for ensuring that adequate controls are Sindh and Khyber Pakhtunkhwa. The Bank's agriculture
maintained and risk is managed within acceptable finance product suite primarily constitutes of agriculture
limits. inputs and Ijarah-based agriculture development
E-statements facilities for meeting the mechanization requirements of
The Bank also provides E-statement facility through agriculture farming.
which customers can receive periodical account
With the Vision to ‘Establish Islamic banking as banking
statements directly via email. This facility is offered at no
of first choice...', Meezan Bank is providing Islamic
additional cost; all that is required is a personal e-mail
financing products that are best suited for rural
address on which the e-statements are sent.
communities. The Bank is also considering innovative
Consumer Protection Measures financing solutions like leveraging technology for digital
inclusion and value chain financial interventions for
The Bank has taken the following measures to provide agricultural growers.

Meezan Bank’s
Contribution to United Nations Sustainable
Development Goals
Meezan Bank operates with a Vision to ‘…facilitate the implementation of an equitable economic
system, providing a strong foundation for establishing a fair and just society for mankind.’ As a
result, our focus on sustainability is embedded deep in our business model.
In September 2015, the United Nations (UN) introduced a set of goals to end poverty, protect
the planet and ensure prosperity for all as part of a new sustainable development agenda that
has been adopted by 195 countries across the world. During 2018, Meezan Bank focused on
the following Sustainable Development Goals (SDGs), which it believes are in line with its
sustainability strategy.
4 QUALITY
EDUCATION
Through its strategic initiatives, Centres for Excellence in Islamic Finance at
Lahore University of Management Sciences (LUMS), Institute of Business
Administration (IBA) and IM Sciences (Peshawar), the Bank is making a
substantial contribution in increasing the relevant skills for employment and
entrepreneurship of youth in the country. Through the ‘Islamic Finance Young
Leaders Program’, the Bank, along with IBA Centre for Excellence in Islamic
Finance is providing exposure and learning to students and young
professionals from different parts of the country.
7 AFFORDABLE AND
CLEAN ENERGY For the purpose of creating opportunities for modern, sustainable energy
services and promoting investment in clean energy technology and energy
infrastructure; the Bank is pursuing the State Bank of Pakistan (SBP) closely,
for designing an Islamic alternative for SBP’s Scheme for Renewable Energy.
8 DECENT WORK AND

ECONOMIC GROWTH
Through its focus on employee development, training and championing public
education and awareness regarding finance, the Bank is not only promoting a
healthy work environment but is also strengthening the country’s economy by
expanding the access of individuals to Islamic banking.
12 RESPONSIBLE
CONSUMPTION
AND PRODUCTION
Through its issuance of Green Banking Policy, the Bank has put in a conscious
effort for environmental conservation, by making improvements in energy
efficiency and use of alternative energy sources for the protection of the
environment. It includes financing to alternative energy sources and
environmental friendly businesses. The policy not only helps in compliance to
relevant laws on environmental protection but also provides openings to
emerging businesses.
17 PARTNERSHIPS
FOR THE GOAL To support Digital Payments in Pakistan and to bring greater transparency to
the economy, the Bank has signed an MoU with NayaPay Pvt Ltd. to enable
merchants and consumers to sign up, transact and communicate cheaply,
securely and conveniently.
As Pakistan’s first Bank to partner with Karandaaz Pakistan for specialized
Supply Chain Partnership Program, the Bank is strengthening domestic
resource mobilization as well as mobilizing financial resources for SMEs in the
country.
Source: www.un.org/sustainabledevelopment/sustainable-development-goals/

Report of the Board Audit Committee
Board Audit Committee (BAC) comprises of four non-executive directors having vast experience and knowledge of
finance and accounting. The Chairman of BAC is an independent director. Bank has adopted Committee of
Sponsoring Organizations (COSO) Integrated Internal Control Framework and the Charter of Internal Audit & BRR
department (IAD) provides complete independence to Head - IAD alongwith free access to BAC.
BAC has been proactively focusing on effectiveness of internal controls, risk management, compliance and
governance processes in accordance with the requirements of Code of Corporate Governance and Terms of
Reference (ToRs) of BAC duly approved by the Board of Directors. During the year 2018, four BAC meetings were
held and following major activities were performed by BAC in accordance with its approved Terms of Reference.
■ BAC reviewed quarterly, half yearly and annual financial statements of the Bank and recommended the same
for approval of the Board.
■ BAC reviewed management letters issued by the external auditors, management's response and their
compliance status and held discussions with external auditors on major observations. BAC also recommended
the appointment of external auditors and their fees to the Board.
■ BAC reviewed and approved the audit strategy, audit plan, scope and extent of the work to be performed by
internal audit (IAD) and Shariah audit. BAC also reviewed adequacy of resources as per the scope.
■ BAC reviewed significant findings of internal audit and Shariah audit along with monitoring of its timely
compliance. BAC also reviewed the whistle blowing mechanism.
■ BAC reviewed major findings of internal investigations with respect to fraud & forgery and whistle blowing along
with management’s action thereto. BAC also reviewed annual review report of fraud, forgeries and robberies.
■ BAC reviewed related party transactions and recommended the same for Board’s approval.
■ BAC reviewed the AML environment, compliance and AML activity report, compliance policy, AML policy and
compliance program, Institutional Risk Assessment Framework (IRAF) – Self Assessment Questionnaire and
SBP inspection reports along with monitoring of its compliance status. BAC also reviewed minutes of
Compliance and Operational Risk Management Committee meetings.
■ BAC reviewed internal audit manuals, programs, revision in polices, ToRs of BAC and recommended the same
for Board’s approval.
■ BAC reviewed Shariah audit manual and ensured compliance of corrective actions determined by Shariah
Supervisory Board on the reports of Shariah audit.
■ BAC reviewed the independent assurance report on compliance with Shariah rules and principles along with
monitoring of its compliance status.
■ BAC reviewed and had an oversight of implementation of Internal Controls over Financial Reporting (ICFR)
program across the Bank.
■ BAC reviewed Internal Audit Department self-assessment and internal quality assurance reviews along with
progress and implementation status.
■ BAC conducted self assessment of its performance to review compliance with SECP Listed Companies (Code
of Corporate Governance) and SBP circulars. Self-assessment report was also presented to the Board.
■ BAC reviewed statement on internal control system and recommended the same for endorsement by the Board.
■ BAC also held separate meetings with external auditor and internal auditor respectively without the CFO and the
management in line with the Code of Corporate Governance.

Chairman-BAC

Shariah Supervisory Board Report - 2018
various government and private entities such as Lucky
Energy Limited, China Power Company, Siddiqsons
Energy Limited, K-Electric, Javedan Corporation
Private Limited, Hyundai Nishat Motors Private Limited,
Agha Steel Industries Limited, Martin Dow Marker
Limited for various purposes such as infrastructure
All praises to Allah ( ). This was the seventeenth year development, capital expansion and power project
of Islamic commercial banking for Meezan Bank which financing. It is worth mentioning that to strengthen the
is under review. During the year, the Shariah Shariah compliance control, physical inspection of
Supervisory Board (SSB) of Meezan Bank held five delivery of goods was carried in almost all the Istisna
meetings to review various issues, referred to them by and Tijarah transactions.
the Bank.
During the year, the Bank has played a vital role in
promoting the Islamic banking industry of Pakistan.
Meezan Bank has a team of professionals in the Shariah
Awareness programs were conducted for religious
Compliance Department (SCD) working under the
scholars, Parliamentarians, Bureaucrats and
guidance of SB. The main objective of this department
Government officials, independently and in
is to perform research and analysis on Shariah issues,
collaboration with Institute of Business Adminstration -
facilitate and ensure Shariah compliance in all the new
Center of Excellence in Islamic Finance (IBA - CEIF).
processes, procedures and product development,
The direct result of this program was a unanimously
refinement of existing products and procedures,
passed Senate Resolution resolving that at least 30% of
conduct Islamic banking trainings, Shariah compliance
the Government debt should be replaced with
reviews of branches, Head Office Units and for each
Shariah-compliant modes.
class of transactions, maintain relevant documentation
and process flows on test check basis and to provide We are pleased to inform that the Bank is leading a
secretarial services to the Bank’s Shariah Board. consortium of Islamic Banks for the structuring of
Pakistan Energy Sukuk for Ministry of Energy / Power
In addition, a separate Shariah Audit Department is Holding Private Limited for settling part of the energy
working under the Board Audit Committee to review the sector circular debt.
overall Shariah compliance in the Bank’s activities
which submits the report to Resident Shariah Board The Bank was also involved in devising a Shariah-
Member (RSBM) / Shariah Supervisory Board for compliant solution for the Deposit Protection
information, review and determination of appropriate Corporation Scheme (DPC) launched by the State Bank
corrective actions. of Pakistan.
To comply with the requirements of the Shariah The Bank has been actively supporting the State Bank
Governance Framework – 2018, function of Product of Pakistan for various matters relating to the Islamic
Development has been transferred to Customer banking industry, such as suggestions for Shariah
Support Group, which is an independent group Governance Framework, solutions for Energy Finance
reporting directly to the Deputy CEO. We appreciate Scheme, issuance of new Sukuk etc.
the efforts of the staff of SCD and Shariah Audit
Department for their efforts in promoting and The SSB appreciated the efforts of RSBM and SCD
strengthening the environment of Shariah compliance team in playing an active role in the implementation
in the bank. committee made by the Federal Minister and in
supporting Government for introducing tax reforms for
It gives us comfort to observe high level of commitment Islamic modes of financing.
of the staff, management and the Board members of the
Bank. It is also encouraging to know that there are more During the year, the SB provided guidelines for different
than 10,035 staff members in the Bank who are the issues, most noteworthy of them were:
source of halal income for their families.
■ Issuance of the first ever Shariah-compliant Tier-1
During the year ending December 31, 2018 major Sukuk in Pakistan
developments are as under: ■ GOP Financing - Bai Muajjal with Ministry of Finance
(MoF)
Research and New Product Development ■ Meezan Bank as Payroll Partner
The SB recognizes the efforts of the Bank for
conducting around 150 customer and industry visits to ■ Shares custodial facility
understand the business model and reviewing more ■ Guidelines for durable goods financing through
than 4,500 different types of transactions as per the e-commerce / digital platform
guidance of RSBM / SSB. ■ Personal financing product for different purposes
Review of more than 8 syndicated transactions, Training & Development

involving various hybrid structures such as Ijarah, SSB is pleased to note that the year 2018 was highly
Diminishing Musharakah and Running Musharakah was productive in terms of Islamic banking products
done by the Bank under the supervision of RSBM / SSB. training. A special training session was arranged for the
All the syndicate transactions were catered towards members of Board of Directors of the Bank which was

delivered by Dr. Imran Ashraf Usmani and Sheikh Esam number of funds and plans under its advisory to
Mohamed Ishaq. more than 50, covering more than half of the Islamic
mutual fund industry.
During the year, 105 training sessions comprising 840
man-hours were organized for staff members across Review of Assets
Pakistan catering to more than 5,000 employees of the The Bank primarily used Diminishing Musharakah,
Bank. This number includes orientation sessions for Running Musharakah, Istisna, Ijarah, Murabaha,
new joiners, refresher programs like Asset Refresher, Musawamah, Salam - Bills, Wakalah Tul Istithmar, Tijarah,
Deposit Refresher, Trade Finance & Treasury Salam - Commodity, Musharakah and Bai Muajjal for its
operations and certification programs in Islamic financing activities during the year.
Financial Products. For the newly opened branches, the
Bank organized 11 sessions (5 days each) of basic We appreciate that the Bank is also focusing on
Islamic banking, to equip staff with the required level of financing alternative energy projects to reduce Carbon
knowledge. In order to create awareness, other than the footprints. The Bank has moved towards diversification
training of internal staff, the Bank also conducted 65 in the usage of various financing products and has
seminars in 38 cities (Karachi, Islamabad, Lahore, reduced the reliance on Murabaha, as is evident from
Peshawar, Rawalpindi, Faisalabad, Multan, the Bank’s financing portfolio. There is a growth of
Hyderabad, Azad Jammu & Kashmir, Hazara, 39.65% in Ijarah from previous year. The Bank has
Abbottabad and DG Khan etc.) which were attended by mainly focused on financing through Musharakah
more than 6,500 participants representing customers, modes, including Diminishing Musharakah and
general public, professionals, ulema, muftian-e-karam Running Musharakah and these modes of financing
and students of various universities. constitute 49.25% of the Bank’s total financing. The
Bank’s total financing portfolio reached Rs 522 Billion
To promote understanding of Islamic banking among (gross) as of December 31, 2018.
university students, visits were arranged for student of
Institute of Business Administration (IBA), Institute of
Financing Modes 2018 2017 Growth /
Business Management (IoBM) and Bahria University.
Presentations on Islamic banking was delivered and % % (Decline) %
discussions were held to address the major questions
related to Islamic banking concepts. Diminishing
Musharakah 18.75 19.72 (0.97)
SSB is pleased to note that our RSBM and one of the
team members of SCD were involved in the translation Musharakah &
of AAOIFI Shariah Standard in Urdu, which is a
Running Musharakah 30.50 34.16 (3.66)
commendable achievement on their part.
During the year, around 118 members of the senior Istisna 14.06 13.31 0.76
management and executives of the Bank were also
given training on Islamic banking. 44 staff members Ijarah 10.57 9.22 1.35
were sent to Institute of Business Administration -
Center of Excellence in Islamic Finance (IBA - CEIF) to Murabaha 3.82 4.61 (0.78)
attend the Advanced Certificate in AAOIFI Shariah
Standards (ACSS). Till date 14 staff members have Musawamah 7.63 4.54 3.09
cleared Certified Shariah Auditor and Advisor (CSAA)
certification. Salam - Bills 1.10 2.76 (1.66)
Shariah Advisory and Industry Support
SSB is also pleased to share that the Bank is actively Wakalah Tul Istithmar 7.82 7.29 0.53
supporting the Islamic Finance industry across the
world by providing tailor-made Shariah Advisory Tijarah 2.57 1.91 0.66
solutions to their business needs. Following are the
notable advisory services provided by the Bank during Salam - Commodity 1.82 0.96 0.86
the year:
Other 1.36 1.53 (0.17)
■ Technical services to support the Pakistan Mercantile
Exchange (PMEX) platform for liquidity management
of Islamic Banking Industry. We have noted that as per our guidelines, the Bank
reversed the financing of Rs 8.9 Million provided to its
■ Advisory services to Islamic Co-operative Finance, customers under Murabaha & Istisna without any profit
Australia related to the introduction of Takaful as those transactions could not be converted into real
services in Australia. trade due to genuine business reasons. As a result the
■ Assisted AAOIFI in developing draft exposure of Bank had to forego the profit of Rs 1.09 Million. Similarly,
Internal Shariah Audit Standard. in Ijarah financing, the Bank being the owner of asset
bore the loss of Rs 1.57 Million due to shortfall in Takaful
■ Advisory services to Bahrain Institute of Banking and claims.
Finance – Bahrain.
■ Conducted capacity building sessions including Summary of Direct Payment in Murabaha Financing
workshops in Turkey at Borsa Istanbul, Central bank During 2018, direct payment for Murabaha financings to
Corporate and SME / Commercial customers was 93%. It
of Turkey.
is highly recommended that efforts be continued to
■ Facilitation of Bank’s capital market clients for increase this percentage of direct payment of Murabaha
launching various funds and plans bringing the total transactions.

2018 2017 Growth/ As part of the Shariah Governance Framework issued
% % (Decline) % by the State Bank of Pakistan (SBP), a separate Shariah
Audit Department reporting to the Board Audit
Overall Portfolio 93% 81% 12% Committee is effectively in place. This department is
playing a significant role towards accomplishment of
Segment wise the objective of ensuring Shariah compliance by
Corporate 96% 100% (4)%
evaluating the adherence to Shariah guidelines
prescribed by Shariah Supervisory Board, Resident
SME/Commercial 92% 76% 16% Shariah Board Member and Shariah guidelines of
Islamic Banking Division of SBP. The Shariah Audit
function keeps a continuous check on all activities
Summary of Direct Payment in Murabaha Financing starting right from the time of opening of a branch and
goes hand in hand at each step of product offering till
2018 2017 Growth / (Decline) the stage of final profit distribution to the customers.
100%
100% 96% Shariah Audit of 537 branches, area offices, consumer
93% 92% & corporate hubs and Head Office departments was
81%
80% 76% conducted as a part of the Bank’s efforts to strengthen
the internal Shariah controls mechanism. These audits
60% not only cover the assessment of financial transactions
and operational activities that the branches and
40%
departments undertake but also include an evaluation
20%
16% of the knowledge of staff pertaining to Islamic Finance.
12%
0
(4%) Charity
Direct Payment Corporate SME/Commercial
During the year an amount of Rs 36.92 Million was
transferred to the Charity Payable Account. This
includes Rs 1.15 Million to eliminate the non-compliant
Liquidity Management income portion identified during Shariah audit,
For the purpose of liquidity management the Bank Rs 3.39 Million to purify the dividend income earned
invested Rs 46 Billion in GoP Ijarah Sukuks. Due to lack from the investment made in the Shariah-compliant
of availability of venues for the Shariah-complaint stocks by the Bank and Rs 32.38 Million transferred to
investments, Rs 227 Billion in Bai Muajjal was executed Charity Payable Account in the normal course of
after the approvals (which is approximately 24% of the business on account of non-timely payments by
total assets of the Bank). customers in various financial transactions. An amount
of Rs 38.4 Million was disbursed from the Charity
Review of Deposits Account after approval of the RSBM / SB. Details of
The Bank continued to offer deposit products based on charity account are available in the note # 20.4
Shariah-compliant modes such as ‘Mudarabah’ & Suggestions
‘Qard’. It is heartening to see deposits grow by 18% to For the purpose of further improving the business of the
reach a sum of Rs 785 Billion as on December 31, 2018. Bank, SSB suggests the following:
During the year, the process of allocation of assets and
funds to various deposit pools, announcement of ■ To support government initiative of converting up to
overall profit sharing ratios for Mudarabah-based 30% debts into the Islamic mode (as per the Senate
deposits, monthly allocation of weightages, and Resolution no. 393), Meezan Bank should suggest
distribution of income to deposit accounts were Shariah-compliant alternates for the short and long-
monitored and reviewed in accordance with the term financing requirements of the Government of
respective pool management guidelines of SBP and Pakistan.
Meezan Bank. ■ Government has taken the initiative of providing
low cost housing schemes for the low income group
The Bank also continued to play its vital role in of society. The Bank should coordinate and
developing and revamping of deposit products. Some collaborate with SBP and Government of Pakistan to
of the important initiatives undertaken during the year maximize the financing of this project through
are as under: Islamic mode of finance.
■ The Bank should explore Shariah-compliant
i. MAC Senior: In order to cater to the needs of Senior products and solutions for FinTechs, internet
citizens/widows/disabled, and to motivate them banking and branchless banking.
towards Shariah-compliant products, new ■ The Bank should pursue the SBP for the launch of
MAC-Senior tiers of 5.5 years and 7 years were different Islamic special purpose financing schemes
introduced. and Islamic discount window.
ii. Meezan Express Account: The account has been
■ The Bank should work for an alternate Islamic
designed to facilitate the beneficiaries of home
product for National Saving Scheme.
remittance and encourage them to use formal
banking channels. ■ The Bank should pursue the Government for
developing cost-effective Islamic financing solution
Shariah Audit for construction of dams.
The Shariah Audit function plays a vital role in achieving ■ To alleviate the poverty currently prevailing in the
the objective of ensuring Shariah-compliance by rural areas of the country and for financial inclusion,
evaluating adherence to Shariah guidelines in each and the Bank should initiate and support SME &
every activity undertaken by the Bank. Agriculture financing.

■ The Bank should encourage environment friendly the review is being transferred to the Charity Account
energy projects such as solar panels and windmills through a well-defined system and being utilized
in line with the objectives of UNDP’s Sustainable properly in accordance with the instructions of SB.
Development Goals.
■ The Bank should encourage Government of Based on the strength and capacity of the full-fledged
Pakistan to utilize Islamic banking facilities for new SCD department and policies / guidelines for the Shariah
Foreign Direct Investment (FDI) in different sectors compliance issued at the Bank, we are of the opinion
especially for China Pakistan Economic Corridor that an effective mechanism is in place to ensure
(CPEC), power and petroleum sectors. Shariah compliance in overall operations of the Bank.
Recommendations May Allah ( ) bless us with the best Tawfeeq to

Based on the review of various transactions, reports of accomplish His cherished tasks, make us successful in
Internal and External Shariah Audit and Shariah this world and in the life hereafter and forgive our
Compliance of the Bank, it is recommended that: mistakes.
■ Proper measures should be adopted with regards to Wassalam Alaikum WaRahmat Allah Wa Barakatuh.
commitment and mind-set of the resources in the
hiring process.
■ For liquidity management purposes, the Bank
should use Bai Muajjal when other avenues like
Musharakah placement and Sukuk are not
available.
Mufti Muhammad Naveed Alam
■ The Bank should focus on creating awareness to Resident Shariah Board Member
eliminate the misconceptions regarding Islamic
banking by conducting seminars / programs /
awareness sessions for the masses. The Bank
should more proactively utilize the social media for
increasing the public awareness for the
socio-economics benefits of Islamic financial
system. Sheikh Esam Mohamed Ishaq
■ The Bank in collaboration with academia, Higher Member Shariah Supervisory Board
Education Commission and educational text boards

should take initiatives to design the courses or
chapters related to the benefit of Islamic financial
system on society.
■ Training should be conducted for relevant
departments to update them regarding current
Dr. Muhammad Imran Ashraf Usmani
practices, manuals and guidelines prescribed by
Member Shariah Supervisory Board
Shariah Board and SCD.
■ Conventional insurance is not permissible from
Shariah perspective. Therefore, it is recommended
to convert all clients to Islamic Insurance i.e. Takaful
as soon as possible.
Conclusion Justice (Retd.) Muhammad Taqi Usmani

As per the Charter of the Bank, it is mandatory on the Chairman Shariah Supervisory Board
management and employees to ensure application of
Shariah principles and guidelines issued by the Shariah
Board and Resident Shariah Board Member and to Dated: 30th Jamada al-Awwal 1440 H / February 06, 2019
ensure Shariah compliance in all activities of the Bank.
The prime responsibility for ensuring Shariah
compliance of the Bank’s operations thus lies with the
Board of Directors and Executive Management.
Based on the extensive reviews of sample cases for

each class of transactions, related documentations,
processes, profit distribution mechanism for the
depositors by SCD, review of Internal Shariah Audit and
External Shariah Audit reports and Management’s
representation made in this regard, the Bank, in our
opinion, has complied with the rules & principles of
Islamic Shariah in light of the guidelines and directives
given by the Shariah Supervisory Board, Resident
Shariah Board Member of Meezan Bank and guidelines
issued by Shariah Board of SBP related to Shariah
compliance. The non-compliant income identified during

2017 % 2018 %
12% 81% 93%
(4)% 100% 96%

16% 76% 92%
2018 2017
100% 96%
100%
93% 92%
81%
80% 76%
60%
40%
16%
20%
12%
(4%)
0

2017 2018
% %

2018

Statement of Sources and
Uses of Charity Fund
2018 2017
Rupees in '000
Opening Balance at January 01 2,398 1,637
Additions during the year
Received from customers on delayed payment 32,376 29,502

Dividend Purification Amount 3,396 1,937
Non-shariah Compliant Income 1,150 -
Profit on Charity Saving Account (net of bank charges) 166 172
37,088 31,611
39,486 33,248
Distribution of Charity
Education (30,250) (26,250)

Health (5,050) (2,700)
Community Development (3,100) (1,900)
(38,400) (30,850)
Closing Balance at December 31 1,086 2,398
Note:
Details of charity payments of Rs 100,000 and above are disclosed in note 20.4.1 to the financial statements of the Bank.

Statement of Compliance with Listed Companies
Code of Corporate Governance Regulations, 2017.
Meezan Bank Limited
The Bank has complied with the requirements of the Code of Corporate Governance Regulations, 2017 (“Regulations” or
“Code”) in the following manner:
1. The Board consists of eleven directors, including CEO as a deemed director. The Bank has submitted application
for Fit and Proper Test of the Directors to the State Bank of Pakistan which is in process of reviewing the same.
The composition of the Board is as follows:
Category Names
Independent Directors Mr. Noorur Rahman Abid

Ms. Laila M. S. A. S. A. S. Abbas (Resigned on February 19, 2019)
Other Non-Executive Directors Mr. Riyadh S.A.A.Edrees – Chairman

Mr. Bader H.A.M.A. Al-Rabiah
Mr. Mansur Khan
Mr. Alaa Al-Sarawi
Mr. Mohamed Guermazi
Executive Directors Mr. Irfan Siddiqui – President & CEO

Mr. Ariful Islam
1.1. As per paragraph 6(1) of the Listed Companies (Code of Corporate Governance) Regulations, 2017, the
independent directors of each listed company shall not be less than two members or one-third of the total members
of the Board, whichever is higher. As at 31st December 2018, the Board includes 2 independent directors. The Bank
is in process of complying the aforesaid regulation.
2. The directors have confirmed that none of them is serving as a director on more than five listed companies, including
this company (excluding the listed subsidiaries of listed holding companies where applicable).
3. The Bank has prepared a Code of Conduct and has ensured that appropriate steps have been taken to disseminate
it throughout the Bank along with its supporting policies and procedures.
4. The Board has developed a Vision / Mission statement, overall corporate strategy and significant policies of the
Bank. A complete record of particulars of significant policies along with the dates on which they were approved or
amended has been maintained.
5. All the powers of the Board have been duly exercised and decisions on relevant matters have been taken by Board /
shareholders as empowered by the relevant provisions of the Companies Act, 2017 (“Act”) and these Regulations.
6. The meetings of the Board were presided over by the Chairman and the Board has complied with the requirements
of Act and the Regulations with respect to frequency, recording and circulating minutes of meeting of Board.
7. The Board of Directors has a formal policy and transparent procedures for remuneration of directors in accordance
with the Act and these Regulations.
8. The Bank is fully compliant to the Director’s Training Program requirement of the Code.
9. There was no appointment of CFO, Company Secretary and Head of Internal Audit. The Board has approved their
remuneration and terms and conditions of their employment are complied with relevant requirements of the
Regulations.
10. CFO and CEO duly endorsed the financial statements before approval of the Board.

11. The Board has formed committees comprising members given below:
Committees Composition
Audit Committee Mr. Noorur Rahman Abid

Mr. Bader Al Rabiah
HR and Remuneration Committee Mr. Noorur Rahman Abid

Mr. Riyadh S.A.A. Edrees
Risk Management Committee Mr. Faisal A.A.A. Al-Nassar

Mr. Mansur Khan
Mr. Ariful Islam
Information Technology Committee Mr. Mansur Khan

Mr. Ariful Islam
12. The terms of reference of the aforesaid committees have been formed, documented and advised to the committee
for compliance.
13. The frequency of meetings of the Committee was as follows:
a) Audit Committee Quarterly
b) HR and Remuneration Committee Quarterly
c) Risk Management Committee Quarterly
d) Information Security Committee Quarterly
14. The Board has set up an effective internal audit function / team who are considered suitably qualified and
experienced for the purpose and are conversant with the policies and procedures of the Bank.
15. The statutory auditors of the Bank have confirmed that they have been given a satisfactory rating under the quality
control review program of the ICAP and registered with Audit Oversight Board of Pakistan, that they or any of the
partners of the firm, their spouses and minor children do not hold shares of the Bank and that the firm and all its
partners are in compliance with International Federation of Accountants (IFAC) guidelines on code of ethics as
adopted by the ICAP.
16. The statutory auditors or the persons associated with them have not been appointed to provide other services except
in accordance with the Act, these regulations or any other regulatory requirement and the auditors have confirmed
that they have observed IFAC guidelines in this regard.
17. We confirm that all other requirements of the Regulations have been complied with.
Irfan Siddiqui Riyadh S. A. Edrees

President & CEO Chairman
February 21, 2019

Statement of Internal Controls
This statement is presented to comply with the requirement of State Bank of Pakistan (SBP)’s BSD circular no. 07 of
2004 dated May 27, 2004 “Guidelines on Internal Controls” and SBP’s OSED circular no. 01 dated February 07,
2014 “Instructions on Internal Controls over Financial Reporting (ICFR)”.
The management of the Bank is responsible for establishing and maintaining an adequate and effective system of
internal controls which has the main objectives of ensuring effectiveness and efficiency of operations, reliability of
financial reporting, safeguarding of assets and compliance with applicable laws and regulations.
The control activities are being closely monitored across the Bank through Compliance, Risk Management, Shariah
and Internal Audit departments, which covers all banking activities in general and key risk areas in particular. The
Management has Compliance and Operational Risk Management Committee (CORMC) which focuses on
compliance risk issues and reviews the adequacy of controls and systems to meet the regulatory requirements. The
Board of Directors has formed an Audit Committee which has direct oversight responsibility to ensure the
independence of the internal and external audit function. The Audit Committee meets atleast once every quarter to
discuss the scope and results of the work performed by the Compliance, Shariah and Internal Audit departments.
The Audit Committee also meets with external auditors prior to approval of half-yearly and annual results of the
Bank.
Based on observation and weaknesses found and identified by the auditors both internal and external and the
Compliance, Risk Management and Shariah audit teams, improvements are brought about by the management in
internal controls to ensure non-recurrence of those exceptions and elimination of such weaknesses to the maximum
possible level.
While the Internal Controls System is effectively implemented and monitored, there are inherent limitations in the
effectiveness of any system, including the possibility of human error or system failure, circumvention and overriding
of controls. Accordingly even an effective internal control system can provide reasonable but not absolute
assurance that the system's objective will be achieved.
Alhamdulillah, the Bank had successfully completed all stages of its ICFR program during 2014 and has been
granted exemption from the requirement of submission of Auditor-issued Long Form Report through SBP OSED
letter /SU-12/017(01)/358/15 dated January 05, 2015. The Bank is now required to only submit annual assessment
report on efficacy of ICFR duly signed by the Chairman, Audit Committee. Having successfully achieved closure on
ICFR, the Bank remains cognizant of its responsibility to continuously improve and with this view continues to
strengthen its system of Internal Controls on an on-going basis.
Based on the above, the Board of Directors endorses the management's evaluation of Internal Controls.
On behalf of the Board.
Ariful Islam Irfan Siddiqui

Deputy CEO President & CEO
February 21, 2019

Notice of 23rd Annual General Meeting
Notice is hereby given that the 23rd Annual General Meeting of the Members of Meezan Bank Limited will be held
Insha’Allah on Thursday, March 28, 2019 at 9:30 a.m. at Meezan House C-25, Estate Avenue, SITE, Karachi to
transact the following business:
ORDINARY BUSINESS
1. To confirm the minutes of the Extraordinary General Meeting held on November 17, 2018.
2. To receive, consider and adopt the Annual Audited Accounts of the Bank, Audited Consolidated Accounts for
the year ended December 31, 2018 together with the Auditors’ Report, Directors’ Report and Chairman’s Review
Report thereon.
3. To appoint auditors of the Bank for the year ending December 31, 2019 and to fix their remuneration. The
present auditors, M/s EY Ford Rhodes., Chartered Accountants, retire and being eligible, offer themselves for
reappointment.
4. To consider and, if thought fit, approve as recommended by the Board of Directors, final cash Dividend at the
rate of Rs 2/- per share i.e. 20%. In addition to Rs 1.50 per Share i.e. 15% interim Cash Dividend already
declared / paid for the year December 31, 2018.
SPECIAL BUSINESS
5. To consider and, if deemed fit, to pass the following resolution as a Special Resolution, with or without
amendments, to alter/amend the Articles of Association (the "Articles"), of the Bank, in order to bring them in
conformity with the provisions of the Companies Act, 2017 (the "Act").
“Resolved that pursuant to all provisions of the Companies Act, 2017 including any
statutory modification(s) or re-enactment thereof, for the time being in force, and rules
made there-under and subject to necessary statutory approvals and modifications, if any,
consent of the members be and is hereby accorded to alter the existing Articles of
Association of the Bank in order to align the same with the applicable provisions of the
Companies Act, 2017, and the rules made there-under and accordingly to adopt the
proposed Changes in the Articles of Association.
Further Resolved that the Chief Executive Officer and / or Company Secretary of the Bank
be and is hereby authorized to, singly, do all acts, deeds and things, take any and all
necessary steps, to fulfill the legal, corporate and procedural formalities and file all
necessary documents/returns as deemed necessary on this behalf and the matters
ancillary thereto to fully achieve the object of the aforesaid resolution.”
6. To approve the remuneration paid / payable to the Chairman, Vice-Chairman and Non-Executive Directors of the
Bank for the year ended December 31, 2018 for attending Board Meetings and Meetings of the Committees
formed by the Board and to pass the following resolution as ordinary resolution. .
“Resolved that the remuneration paid / payable to the Chairman, Vice-Chairman and
Non-Executive Directors of the Bank for the year ended December 31, 2018 for attending
Board Meetings and Meetings of the Committees formed by the Board, as disclosed in note
39 of the Audited Financial Statements of the Bank be and is hereby approved.”
7. To transact any other business with the permission of the Chair.
Statements under section 134 (3) of the Companies Act 2017 pertaining to special business are enclosed.
By Order of the Board
Karachi Muhammad Sohail Khan

February 21, 2019 Company Secretary

Notes:
i) The Members’ Register will remain closed from March 21, 2019 to March 28, 2019 (both days inclusive) to
determine the names of members entitled to receive the 20% cash dividend and attend and vote in the meeting.
ii) A member eligible to attend and vote at this meeting may appoint any person as proxy to attend and vote in the
meeting. Proxies in order to be effective must be received at the Registered Office not less than forty eight (48)
hours before the holding of the meeting.
iii) Members are requested to intimate any changes in address immediately to THK Associates (Pvt.) Ltd., 1st
Floor, 40-C, Block-6, P.E.C.H.S, Karachi-75400. Phone No. 111-000-322
For Information of the Members:
iv) The Government of Pakistan has made certain amendments in Section 150 of the Income Tax Ordinance, 2001
whereby different rates are prescribed for deduction of withholding tax on the amount of dividend paid by the
Companies / Banks. These rates are as per law.
To enable the Bank to make tax deduction on the amount of Cash Dividend, all the members whose names are
not entered into Federal Board of Revenue (FBR)’s Active Tax-Payers List (ATL), despite the fact that they are
tax return filers are advised to make sure that their names are entered into ATL, before the date of book closure
for cash dividend, otherwise tax on their cash dividend will be deducted as non-filer.
All shareholders who hold shares jointly are requested to provide shareholding proportions of Principal
shareholder and Joint-holder(s) in respect of shares held by them to our Shares Registrar, in writing as follows:
Principal Shareholder Joint Shareholder
Folio/ CDS Total Shares Name and Shareholding Name and Shareholding
CNIC No. Proportion CNIC No. Proportion
(No. of Shares) (No. of Shares)
The required information must reach our Shares Registrar by the close of business (5:00 pm) on March 20,
2019; otherwise it will be assumed that the shares are equally held by Principal shareholder and Joint Holder(s)
and tax will be deducted according to proportionate holding of each shareholder as clarified by the FBR vide
its clarification letter No. I(54) Exp/2014-132872-R dated September 25, 2014. Shareholders claiming tax
exemption under clause 47(B) of Part IV of the Second Schedule of Income Tax Ordinance, 2001 are requested
to provide valid exemption certificate under section 159 (1) of the Income Tax Ordinance, 2001 latest by
March 20, 2019 to our Shares Registrar as required vide FBR clarification letter No. 1(43)DG
(WHT) / 2008-Vol.II-66417-R dated May 12, 2015.
Payment of Cash Dividend through electronic mode:
v) Under section 242 of the Companies Act, 2017, it is mandatory for a listed company to pay cash dividend to
shareholders only through electronic mode directly into bank account designated by the entitled shareholders.
In order to receive dividend directly into bank account, shareholders are requested to fill in Electronic Credit
Mandate Form available on Bank’s website and send it duly signed alogwith a copy of CNIC to the registrar of
the company, THK Associates (Pvt.) Ltd., 1st Floor, 40-C, Block-6, P.E.C.H.S, Karachi-75400 in case of
physical shares.
In case shares are held in CDC then the Electronic Credit Mandate Form must be submitted directly to
shareholder(s)’ broker / participant / CDC account services or shareholders can directly register for e-Dividend
Services by visiting CDC Portal: www.eipo.cdcaccess.com.pk/public/index.xhtml
Electronic Credit Mandate Form

Folio Number /CDC Sub Account Number
Name of Shareholder
Title of the Bank Account
International Bank Account Number
Name of Bank
Name of Bank Branch / Address
Cellular and Landline number
CNIC / Passport No. (Attach copy)
Signature of Shareholder

Availability of Annual Accounts
vi) Annual Accounts of the Bank for the financial year ended December 31, 2018 have been provided on the
Company’s website-www.meezanbank.com.
Video Conference Facility for Attending General Meetings
vii) In accordance with the Section 132(2) of the Companies Act, 2017, members holding in aggregate 10% or
more shareholding in the paid up capital of the Bank residing in a city, may avail video conference facility to
attend the Meeting.
Requirements and procedures for availing video conference facility as stipulated in the Circular are as under:
The members should provide their consent as per the following format and submit to the registered address of
the Bank 10 days before holding of General Meeting.
Consent Form for Video Conference Facility

I/We__________________________________ of _______________________ being a member of Meezan Bank Limited,
holder of _______________________ ordinary shares as per Register Folio / CDC Account No.___________________
hereby opt for video conference facility at ___________________________ (geographical location).
_____________________
Signature of Member
lf the Bank receives consent from members holding in aggregate 10% or more shareholding residing at a
geographical location, to participate in the Meeting through video conference at least 07 days prior to date of the
Meeting, the Bank will arrange video conference facility in that city subject to availability of such facility in that city.
The Bank will intimate members regarding venue of video conference facility at least 5 days before the date of
Annual General Meeting along with complete information necessary to enable them to access such facility.
STATEMENTS UNDER SECTION 134(3) OF THE COMPANIES ACT, 2017
These statements set out the material facts concerning the resolution contained in items (5) and (6) of the notice
pertaining to the special business to be transacted at the Annual General Meeting of the Bank to be held on
March 28, 2019.
Amendments/Adoption of changes in the Articles of Association as per the Companies Act, 2017
The existing Articles of Association of Meezan Bank Limited (“Bank”) were required to be revised to align it with
legislative changes and requirements brought about by the Companies Act, 2017, Listed Companies (Code of
Corporate Governance) Regulations 2017 read with Securities Act 2015, Pakistan Stock Exchange Rules, other
applicable rules & regulations and ensure its conformity with the Banking Companies Ordinance 1962, and
various other requirements of State Bank of Pakistan.
Accordingly, the Board of Directors of the Bank in its meeting held on February 21, 2019 has recommended
amendments in the Articles of Association of the Bank to bring in conformity with the Companies Act, 2017, the
amendments of which shall be laid before the members at the Annual General Meeting scheduled on March
28, 2019 in accordance with the requirements of Section 134(3) of the Companies Act 2017.
A comparison highlighting the changes proposed in the Articles of Association will be available on the
company’s website www.meezanbank.com physical copies of the same are also dispatched along with notice
of AGM at members registered addresses.
The Directors of the Bank have no vested interest, directly or indirectly in the above business, save to the extent
of their shareholding of the Bank.
Directors’ Remuneration
The remuneration paid / payable to the non-executive directors was approved by the Board of Directors in
terms of Article 52 of the Articles of Association of the Bank. The remuneration requires approval (which is
permissible on post facto basis) of the shareholders in Annual General Meeting in terms of requirements of the
Prudential Regulations for Corporate / Commercial Banking issued by the State Bank of Pakistan.
The non-executive directors are interested in the payment of remuneration and the remaining members of the
Board have no interest in the matter.

Unconsolidated
Financial Statements
Statement of Financial Position 157
Profit and Loss Account 158
Statement of Comprehensive Income 159
Statement of Changes in Equity 160
Cash Flow Statement 161
Notes to and forming part of the
Financial Statements 162
Statement showing
written-off financing (Annexure 1) 229
Unconsolidated Statement of Financial Position
As at December 31, 2018
Note
3.2 Restated Restated
2018 2017 2016
ASSETS Rupees in ‘000
Cash and balances with treasury banks 7 65,022,041 64,556,170 56,036,849

Balances with other banks 8 8,255,187 4,895,816 12,021,351
Due from financial institutions - net 9 184,814,600 147,229,221 129,115,165
Investments - net 10 123,742,867 119,238,246 130,156,297
Islamic financing and related assets - net 11 512,564,522 420,029,088 311,530,270
Fixed assets 12 13,129,126 11,362,868 8,469,414
Intangible assets 13 624,534 512,490 454,914
Deferred tax asset 14 982,936 - -
Other assets - net 15 28,779,592 20,984,101 14,271,194
937,915,405 788,808,000 662,055,454
LIABILITIES
Bills payable 16 23,750,543 17,175,035 13,756,970

Due to financial institutions 17 36,407,811 36,813,295 32,005,501
Deposits and other accounts 18 785,476,944 667,180,865 559,397,881
Sub-ordinated Sukuk 19 14,000,000 7,000,000 7,000,000
Deferred tax liabilities 14 - 8,182 1,362,909
Other liabilities 20 37,947,052 25,553,230 18,058,575
897,582,350 753,730,607 631,581,836
NET ASSETS 40,333,055 35,077,393 30,473,618
REPRESENTED BY
Share capital 21 11,691,924 10,629,022 10,027,379

Reserves 22 15,161,249 13,368,809 9,699,685
Unappropriated profit 13,525,765 10,340,589 8,422,009
(Deficit) / surplus on revaluation of assets - net of tax 23 (45,883) 738,973 2,324,545
40,333,055 35,077,393 30,473,618
CONTINGENCIES AND COMMITMENTS 24
The annexed notes 1 to 51 and Annexure 1 form an integral part of these unconsolidated financial statements.
Riyadh S. A. A. Irfan Siddiqui Noorur Rahman Mansur Khan Shabbir Hamza

Edrees President & Abid Khandwala
Chairman CEO Director Director Chief Financial Officer

Unconsolidated Profit and Loss Account
Note
3.2 Restated
2018 2017
Rupees in ‘000
Profit / return earned on Islamic financing and related assets,
investments and placements 25 48,624,458 36,426,932
Profit on deposits and other dues expensed 26 20,456,948 15,683,700
Net spread earned 28,167,510 20,743,232
OTHER INCOME
Fee and Commission Income 27 5,257,170 4,165,971
Dividend income 567,429 1,176,517
Foreign Exchange Income 1,318,460 1,210,827
Gain on securities - net 28 8,308 824,926
Other income 29 311,136 246,041
7,462,503 7,624,282
Total income 35,630,013 28,367,514
OTHER EXPENSES
Operating expenses 30 19,290,136 16,579,977
Workers Welfare Fund 20.5 363,001 241,377
Other charges 31 16,419 10,824
Total other expenses 19,669,556 16,832,178
Profit before provisions 15,960,457 11,535,336
Provisions and write offs - net 32 1,168,051 1,283,326
Extra ordinary / unusual items - -
Profit before taxation 14,792,406 10,252,010
Taxation 33 5,830,206 3,939,243
Profit after taxation 8,962,200 6,312,767
Rupees
Restated
Basic and diluted earnings per share 34 7.67 5.56


Unconsolidated Statement of
Comprehensive Income
Note
3.2 Restated
2018 2017
Rupees in ‘000
Profit after taxation for the year 8,962,200 6,312,767
Other comprehensive income
Items that may be reclassified to profit and loss account in subsequent periods:
Deficit on revaluation of investment 23 (1,241,550) (2,439,341)
Deferred tax on revaluation of investments 434,542 853,769

(807,008) (1,585,572)
Items that will not be reclassified to profit and loss account in subsequent periods:
Remeasurements of defined benefit plan 37 1,998 (189,878)
Tax on remeasurements of defined benefit plan (699) 66,457

1,299 (123,421)
Surplus on revaluation of non-banking assets 23 34,080 -
Deferred tax on revaluation of non-banking assets (11,928) -

22,152 -
Total Comprehensive Income for the year 8,178,643 4,603,774


Unconsolidated Statement of Changes in Equity
Capital Revenue Surplus / (deficit) on

reserves reserves revalution of
Share Share Statutory Non - General Unappropriated Investments Non-banking Total
capital premium reserve* Distributable reserve profit Assets
Capital Reserve -
Gain on Bargain
Purchase
Rupees in ‘000
Balance as at January 01, 2017 - Restated (Note 3.2) 10,027,379 - 6,515,372 3,117,547 66,766 8,422,009 2,324,545 - 30,473,618
Profit after taxation for the year - - - - - 6,312,767 - - 6,312,767
Other Comprehensive loss for the year - net of tax - - - - - (123,421) (1,585,572) - (1,708,993)
- - - - - 6,189,346 (1,585,572) - 4,603,774
Other appropriations
Transfer to statutory reserve - - 1,262,553 - - (1,262,553) - - -
Transactions with owners recognised directly in equity
Issue of right shares 601,643 2,406,571 - - - - - - 3,008,214
Final cash dividend for the year 2016 - - - - - (1,253,422) - - (1,253,422)
Interim cash dividend for the year 2017 - - - - - (1,754,791) - - (1,754,791)

- - - - - (3,008,213) - - (3,008,213)
Balance as at December 31, 2017 - Restated (Note 3.2) 10,629,022 2,406,571 7,777,925 3,117,547 66,766 10,340,589 738,973 - 35,077,393
Profit after taxation for the year - - - - - 8,962,200 - - 8,962,200
Other Comprehensive income / (loss) for the year - net of tax - - - - - 1,299 (807,008) 22,152 (783,557)
- - - - - 8,963,499 (807,008) 22,152 8,178,643
Transfer to statutory reserve - - 1,792,440 - - (1,792,440) - - -
Transactions with owners recognised directly in equity
Issue of bonus shares 1,062,902 - - - - (1,062,902) - - -
Final cash dividend for the year 2017 - - - - - (1,328,628) - - (1,328,628)
Interim cash dividend for the year 2018 - - - - - (1,594,353) - - (1,594,353)

- - - - - (2,922,981) - - (2,922,981)
Balance as at December 31, 2018 11,691,924 2,406,571 9,570,365 3,117,547 66,766 13,525,765 (68,035) 22,152 40,333,055
*This represents reserve created under section 21(i)(a) of the Banking Companies Ordinance, 1962.


Unconsolidated Cash Flow Statement
Note
3.2 Restated
2018 2017
Rupees in ‘000
CASH FLOW FROM OPERATING ACTIVITIES

Less: Dividend income (567,429) (1,176,517)
14,224,977 9,075,493
Adjustments for non-cash charges and other items:
Depreciation 1,514,837 1,465,891
Amortization 220,208 170,156
Provisions and write offs - net 1,168,051 1,283,326
Charge for defined benefit plan 351,317 279,078
Gain on sale of fixed assets (83,432) (72,928)
3,170,981 3,125,523
17,395,958 12,201,016
Due from financial institutions (37,585,379) (18,114,056)
Islamic financing and related assets (93,411,858) (109,195,454)
Other assets (7,765,391) (3,866,836)
(138,762,628) (131,176,346)
Bills payable 6,575,508 3,418,065
Due to financial institutions (405,484) 4,807,794
Deposits and other accounts 118,296,079 107,782,984
Other liabilities 11,224,937 3,777,670
135,691,040 119,786,513
14,324,370 811,183
Contribution to defined benefit plan (441,125) (123,356)
Income tax paid (5,150,807) (3,836,755)
Net cash flow from / (used in) operating activities 8,732,438 (3,148,928)
CASH FLOW FROM INVESTING ACTIVITIES
Net (investments) / redemption in

- available for sale securities (7,113,572) 7,884,619
- held to maturity securities - -
- associated entities 1,060,000 7,359
Dividends received 589,003 1,164,417
Investments in fixed assets (3,338,121) (4,423,558)
Investments in intangible assets (332,252) (229,771)
Proceeds from sale of fixed assets 140,458 139,180
Net cash (used in) / flow from investing activities (8,994,484) 4,542,246
CASH FLOW FROM FINANCING ACTIVITIES
Issuance of Right Shares - 3,008,214

Issuance of Sub-ordinated Sukuk - Additional Tier I 7,000,000 -
Dividend paid (2,912,712) (3,007,746)
Net cash flow from financing activities 4,087,288 468
Increase in cash and cash equivalents 3,825,242 1,393,786
Cash and cash equivalents at the beginning of the year 35 69,451,986 68,058,200
Cash and cash equivalents at the end of the year 35 73,277,228 69,451,986


1 LEGAL STATUS AND NATURE OF BUSINESS
1.1 Meezan Bank Limited (the Bank) was incorporated in Pakistan on January 27, 1997, as a public limited company under the
Companies Act, 2017 (previously Companies Ordinance, 1984), 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.
1.2 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.
1.3 The Bank was operating through six hundred and sixty branches as at December 31, 2018 (2017: six hundred and one
branches). Its registered office is at Meezan House, C-25, Estate Avenue, SITE, Karachi, Pakistan.
1.4 Based on the financial statements of the Bank for the year ended December 31, 2017, the JCR-VIS Credit Rating Company
Limited has upgraded the Bank's long-term rating to 'AA+' from 'AA' and reaffirmed the short-term rating as 'A1+' with
stable outlook.
2 BASIS OF PRESENTATION
The Bank provides Islamic financing and related assets mainly through Murabaha, Istisna, Tijarah, Salam, Ijarah, Diminishing
Musharakah, Running Musharakah, Bai Muajjal, Musawammah, Service Ijarah, Wakalah, Wakalah Tul Istithmar, and Export Refinance
under Islamic Export Refinance Scheme and long term financing facility under Islamic Long Term Financing Facility of the State
Bank of Pakistan respectively as briefly explained in note 6.3.
The purchases and sales arising under these arrangements are not reflected in these 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.
3 STATEMENT OF COMPLIANCE
3.1 These unconsolidated financial statements (here-in-after referred to as "financial statements") have been prepared in
accordance with the accounting and reporting standards as applicable in Pakistan. The accounting and reporting standards
comprise of:
- 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 as are
notified under the Companies Act, 2017;
- Provisions of and directives issued under the Banking Companies Ordinance, 1962 and the Companies Act,
2017; and
- Directives issued by the State Bank of Pakistan (SBP) and the Securities Exchange Commission of Pakistan
(SECP).
Whenever the requirements of the Banking Companies Ordinance, 1962, the Companies Act, 2017 or the directives issued by
the SBP and the SECP differ with the reuirements of IFRS or IFAS the requirements of the Banking Companies Ordinance, 1962,
the Companies Act, 2017 and the said directives, shall prevail.
3.2 Adoption of new forms for the preparation of financial statements
During the year, the SBP, vide its BPRD Circular No. 02 dated January 25, 2018, issued the revised forms for the preparation
of the annual financial statements of the banks which are applicable for annual periods beginning on or after January 01,
2018. The implementation of the revised forms has resulted in certain changes to the accounting policies of the Bank and
the presentation and disclosures of various elements of the financial statements. These changes are summarized below:
3.2.1 Changes in the accounting policies
- As per the revised forms, “Surplus / deficit on revaluation of assets” is now required to be presented as a component of
the equity of the Bank. Previously, such surplus / deficit was required to be presented separately from the equity
of the Bank and changes in such surplus / deficit were not recognized in the statement of comprehensive income.
Consequent upon the change in the presentation requirements, the surplus / deficit on revaluation of assets and
changes in such surplus / deficit during the year are reflected in the relevant section of the statement of financial
position, statement of comprehensive income and statement of changes in equity for the current and prior years
presented in these financial statements.

- Acceptances representing undertakings by the Bank to pay bills of exchange drawn on customers are now required to
be recognized as liabilities of the Bank at the date of acceptance. Previously, acceptances were only recognized
as off-balance sheet obligations and disclosed under contingent liabilities. As a result of the above change, the
other assets and other liabilities of the Bank increased by Rs 10,599 million, Rs 7,109 million and Rs 4,288 million
as of 2018, 2017 and 2016 respectively.
3.2.2 Significant changes to the presentation and disclosures
In addition, to above changes in accounting policies, certain changes to the presentation of the financial statements
have been made such as other reversal of provisions / write offs have now been combined under provisions & write
off - net (note 32), Business segments have been identified and reported as per the requirements of IFRS 8 -
"Operating Segments" (note 41), cost of conversion of foreign currency deposits is now included in "Profit on deposits
and other dues expensed" (note 26).
Further, certain, new disclosures have been introduced which include category of classification for non-performing
“Due from Financial Institutions” (Note 9.4) and "Investments" (note 10.4); movement in “Non-banking assets acquired
in satisfaction of claims” (note 15.3.1); for “Non-banking assets acquired in satisfaction of claims” sold during the
year, disposal proceeds, cost of such asset, impairment/depreciation and realized gains or losses (note 15 and
note 29); composition of deposits (note 18.1); breakdown of Fee and Commission income (note 27); presentation of
operating expenses has been changed (note 30); Concentration of Islamic financing and province wise disbursements
and utilization of Islamic financing (note 46.1.1.5 and note 46.1.1.6); and assets split between trading and banking
books (note 46.2.2).
The Bank has adopted the above changes in the presentation and made additional disclosure to the extent applicable
to its operations and corresponding figures have been rearranged / reclassified to correspond to current year’s
presentation. Such reclassifications / re-arrangements are disclosed in note 50 to the financial statements.
3.2.3 The SBP, vide its BPRD Circular No. 01 January 25, 2017 issued "Guidelines and Disclosures on Governance and
Remuneration Practices". Certain disclosure related to remuneration of Directors and management of the Bank were
required to be presented in the financial statements in terms of such guidelines. Accordingly, revised format of the
financial statement issued by the SBP incorporates such disclosure requirements. However, SBP through its circular
number BPRD/R&PD/2018/17232 dated August 08, 2018 deferred the reporting of such disclosures till December
31, 2019. Therefore, the management has reported the remuneration disclosures in these financial statement in
accordance with previous disclosure requirements of the SBP (note 39).
3.3 The SBP, through its BSD Circular No. 10 dated August 26, 2002, has deferred the implementation of International Accounting
Standard (IAS) 39 - "Financial Instruments: Recognition and Measurement" and IAS 40 - "Investment Property" for Banking
Companies in Pakistan, till further instructions. Accordingly, the requirements of these Standards have not been considered
in the preparation of these financial statements. Further, the SECP has deferred the applicability of International Financial
Reporting Standard (IFRS) 7 "Financial Instruments: Disclosures" through its S.R.O. 411(I)/2008 dated April 28, 2008.
Accordingly, the requirements of this standard have also not been considered in the preparation of these financial statements.
However, investments and non-banking assets have been classified and valued in accordance with the requirements
prescribed by the SBP through various circulars.
3.4 The SBP vide its BPRD Circular No. 04 dated February 25, 2015 has clarified that the reporting requirements of IFAS 3 for Islamic
Banking Institutions (IBIs) relating to annual, half yearly and quarterly financial statements would be notified by SBP through
issuance of specific instructions and uniform disclosure formats in consultation with IBIs. These reporting requirements have not
been ratified to date. Accordingly, the disclosures requirements under IFAS 3 have not been considered in these financial
statements.
3.5 Standards, interpretations and amendments to published approved accounting standards that are effective in the
current year
The Bank has adopted the following accounting standard and the amendments and interpretation of IFRSs which became
effective for the current year:
Standard or Interpretation
- IFRS 2 - Share-based Payments – Classification and Measurement of Share-based Payments Transactions (Amendments)
- IFRS 4 - Insurance Contracts: Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts – (Amendments)
- IFRIC Interpretation 22 - Foreign Currency Transactions and Advance Consideration

Improvements to Accounting Standards Issued by the IASB in December 2016
- IAS 28 - Investments in Associates and Joint Ventures: Clarification that measuring investees at fair value through profit or loss
is an investment-by-investment choice.
The adoption of the above amendments, improvements to accounting standards and interpretations did not have any effect
on the financial statements.
3.6 Standards, interpretations and amendments to published approved accounting standards that are not yet effective
3.6.1 The following standards, amendments and interpretations with respect to the approved accounting standards would be
effective from the dates mentioned thereagainst:
Effective date (accounting
Standard, Interpretations and Amendments periods beginning on or after)
- IFRS 3 - Definition of a Business (Amendments) January 01, 2020

- IFRS 9 - Financial Instruments: Classification and Measurement July 01, 2018
- IFRS 9 - Prepayment Features with Negative Compensation – (Amendments) January 01, 2019
- IFRS 10 - Consolidated Financial Statements and IAS 28 Investment in Associates
and Joint Ventures - Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture (Amendment) Not yet finalized
- IFRS 15 - Revenue from Contracts with Customers July 01, 2018
- IFRS 16 - Leases January 01, 2019
- IFRIC 23 - Uncertainty over Income Tax Treatments January 01, 2019
- IAS 1/ IAS 8 - Definition of Material (Amendments) January 01, 2020
- IAS 19 - Plan Amendment, Curtailment or Settlement (Amendments) January 01, 2019
- IAS 28 - Long-term Interests in Associates and Joint Ventures (Amendments) January 01, 2019
3.6.2 The above standards, amendments and interpretations are not expected to have any material impact on the Bank's
financial statements in the period of initial application, other than IFRS 9 and IFRS 16. With regard to IFRS 9, the
Bank considers that as the Prudential Regulations and other SBP directives currently provide the accounting
framework for the measurement and valuation of investments and provision against non performing financing, the
implementation of IFRS 9 may require changes in the regulatory regime. Therefore, the Bank expects that the SBP
would issue suitable guidance and instruction on the application of IFRS 9 for the banking sector of Pakistan. With
regard to IFRS 16, the Bank is currently evaluating the impact of application of IFRS 16 on its financial statements.
3.6.3 In addition to the above standards and amendments, improvements to various accounting standards have also
been issued by the IASB in December 2017. Such improvements are generally effective for accounting periods
beginning on or after 01 January 2019. The Bank expects that such improvements to the standards will not have
any impact on the Bank's financial statements in the period of initial application.
Further, following new standards have been issued by IASB which are yet to be notified by the SECP for the purpose of
applicability in Pakistan.
Standards
- IFRS 14 – Regulatory Deferral Accounts
- IFRS 17 – Insurance Contracts
4 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
4.1 The preparation of the financial statements in conformity with the accounting and reporting standards as applicable in Pakistan
requires the use of certain critical accounting estimates. It also requires management to exercise judgments in the process
of applying the Bank’s accounting policies. The significant accounting areas where various assumptions and estimates are
significant to the Bank's financial statements or where judgment was exercised in the application of the accounting policies
are as follows:
(a) Classification of investments in accordance with the Bank's policy (notes 6.4 and 10);
(b) Provision against non-performing Islamic financing and related assets (notes 6.3.2 and 11);
(c) Impairment of investments in equity instruments of subsidiary, associates and non associate entities (notes 6.4.5,
10 and 32);
(d) Accounting for defined benefit plan (notes 6.12 and 37);
(e) Depreciation / amortisation of fixed assets and intangible assets (notes 6.5, 12 and 13); and
(f) Assumption and estimation in recognition of provision for taxation (current and prior years) and deferred taxation
(notes 6.6,14, 20 and 33).
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including
expectation of future events that are believed to be reasonable under the circumstances. Actual results may differ from
these estimates.

5 BASIS OF MEASUREMENT
5.1 These financial statements have been prepared under the historical cost convention except that certain investments,
foreign currency balances, Non-banking assets acquired in satisfaction of claims and commitments in respect of certain
foreign exchange contracts have been marked to market and carried at fair value in accordance with the requirements
of the SBP. In addition, obligation in respect of staff retirement benefit and employees compensated leave balances are
carried at present value as per actuarial valuation.
5.2 Functional and Presentation Currency
Items included in the financial statements are measured using the currency of the primary economic environment in which
the Bank operates. These financial statements are presented in Pakistani Rupees, which is the Bank's functional and
presentation currency.
5.3 Rounding off
Figures have been rounded off to the nearest thousand rupees unless otherwise stated.
6 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these financial statements are set out below.
6.1 Cash and cash equivalents
Cash and cash equivalents comprise of cash and balances with treasury banks and balances with other banks in current
and deposit accounts.
6.2 Due to / from financial institutions
Bai Muajjal
In Bai Muajjal, the Bank sells sukuk on credit to other financial institutions. The credit price is agreed at the time of sale and
such proceeds are received at the end of the credit period.
Musharaka / Mudaraba
In Musharaka / Mudaraba, the Bank invests in the shariah compliant business pools of the financial institutions at the agreed
profit and loss sharing ratio.
Musharaka from State Bank of Pakistan under IERS
Under IERS, the Bank accepts funds from the SBP under shirkat-ul-aqd to constitute a pool for investment in export refinance
portfolio of the Bank under the guidelines issued by the SBP. The profit of the pool is shared as per the agreed weightages
between the partners.
6.3 Islamic financing and related assets
Murabaha
In Murabaha transactions, the Bank purchases the goods and after taking the possession, sells them to the customer on
cost plus profit basis either in a spot or credit transaction.
Ijarah
Ijarah assets are stated at cost less depreciation and are disclosed as part of 'Islamic financing and related assets'. The
rental received / receivable on Ijarah under Islamic Financial Accounting Standard - 2 ‘Ijarah’ (IFAS 2) are recorded as
income / revenue. The Bank charges depreciation from the date of recognition of Ijarah of respective assets to mustajir.
Ijarah assets are depreciated over the period of Ijarah using the straight line method. Ijarah rentals outstanding are disclosed in
'other assets' on the Statement of Financial Position at amortized cost. Impairment of Ijarah assets is determined in
accordance with the Prudential Regulations issued by the SBP. The provision for impairment of Ijarah assets is shown as
part of 'Islamic financing and related assets'.
Istisna
In Istisna financing, the Bank places an order to purchase some specific goods / commodities from its customers to be
delivered to the Bank within an agreed time. The goods are then sold by the customer on behalf of the bank and the amount
hence financed alongwith profit is paid back to the Bank.
Tijarah
In Tijarah financing, the Bank purchases specific goods / commodities on cash basis from its customers for onward sale
by the customer on behalf of the bank and on subsequent sale, the financed amount alongwith profit is paid back by the
customer to the Bank.
In Diminishing Musharakah financing, the Bank enters into Musharakah based on Shirkat-ul-milk for financing an agreed share
of fixed asset (e.g. house, land, plant or machinery) with its customers. The customers pay periodic profit as per the agreement
for the utilisation of the Bank's Musharakah share and also periodically purchase the Bank's share over the tenure of the transaction.

Running Musharakah
In Running Musharakah financing, the Bank enters into financing with the customer based on Shirkat-ul-Aqd or Business
Partnership in the customer's operating business. Under this mechanism the customer can withdraw and return funds to
the Bank subject to his Running Musharakah Financing limit during the Musharakah Period. At the end of each quarter /
half year the customer pays the provisional profit as per the desired profit rate which is subject to final settlement based on
the relevant quarterly / half yearly / annual accounts of the customer.
Bai Muajjal
In Bai Muajjal financing, the Bank sells Shariah compliant sukuk on credit to customers. The credit price is agreed at the
time of sale and such proceeds are received at the end of the credit period.
Service Ijarah
In Service Ijarah financing, the Bank provides financing by acquiring certain agreed services from the customer. After the
purchase of services, the Bank appoints the customer to sell these services in the market over a period and provide a sale
confirmation of such sale. The profit is only accrued from the date of receipt of such confirmation.
Wakalah
Wakalah is an agency or a delegated authority where the Muwakkil (principal) appoints the Wakil (agent) to carry out a specific
job on behalf of the Muwakkil. Funds disbursed are initially recorded as ‘Advance against Wakalah’. On culmination, the same
are recorded as financings.
Wakalah tul Istithmar
In Wakalah tul Istithmar financing, the Bank enters into investment agency transaction with customer acting as an agent of the
Bank. Under this mechanism, the funds disbursed are invested by the customer on behalf of the Bank and are recorded as
financing upon their investment in the business. At the end of each quarter / half year / other defined period, the customer pays
the provisional profit which is subject to adjustment upon actual declaration of wakala business performance by the agent.
Musawamah
In Musawammah financing, the Bank purchases the goods and after taking the possession, sells them to the customer
either in spot or credit transaction, without disclosing the cost.
6.3.1 Islamic financing and related assets are stated net of specific and general provisions against non-performing Islamic
financing and related assets which are charged to the profit and loss account.
Funds disbursed, under financing arrangements for purchase of goods / assets are recorded as advance. On culmination,
financing are recorded at the deferred sale price net of profit. Goods purchased but remaining unsold at the statement
of financial position date are recorded as inventories.
6.3.2 Provision against non-performing Islamic financing and related assets
Specific provision
The Bank determines provisions against Islamic financing and related assets on a prudent basis in accordance
with the requirements of the Prudential Regulations issued by the SBP.
General provision
In accordance with Prudential Regulations issued by the SBP, general provision against consumer financing should
be maintained at varying percentages based on the non-performing loan ratio present in the portfolio. These
percentages range from 1% to 2.5% for secured and 4% to 7% for unsecured portfolio.
In addition to the above mentioned requirements, the Bank has also created a general provision in respect of
financing against potential losses present in the portfolio. This provision is based on management's best estimate
and is approved by the Board of Directors of the Bank.
The net provisions made / reversed during the year is charged to the profit and loss account and accumulated
provision is netted off against Islamic financing and related assets. Islamic financing and related assets are written
off when there are no realistic prospects of recovery.

6.3.3 Inventories
The Bank values its inventories at the lower of cost and net realisable value.
The net realisable value is the estimated selling price in the ordinary course of business less the estimated cost
necessary to make the sale.
Cost of inventories represents actual purchases made by the Bank / customers as an agent of the Bank for
subsequent sale.
6.4 Investments
6.4.1 Classification
The Bank classifies its investments as follows:
- Held for trading
These are investments which are either acquired for generating profits from short-term fluctuations in market
prices or are securities included in a portfolio for which there is evidence of a recent actual pattern of short-term
profit taking.
- Held to maturity
These are investments with fixed or determinable payments and maturity that the Bank has the positive intent
and ability to hold till maturity.
- Available for sale
These are investments, which do not fall under 'held for trading' or 'held to maturity' categories.
- Associates
Associates are all entities over which the Bank has significant influence but not control.
- Subsidiary
Subsidiary is an entity over which the Bank has control.
6.4.2 Regular way contracts
All purchases and sales of investments that require delivery within the time frame established by regulation or market convention are
recognised at the trade date, which is the date on which the Bank commits to purchase or sell the investments.
6.4.3 Initial recognition and measurement
Investments other than those categorised as 'held for trading' are initially recognised at fair value which includes
transaction costs associated with the investments. Investments classified as 'held for trading' are initially recognised at
fair value and transaction costs are expensed in the profit and loss account.
6.4.4 Subsequent measurement
Subsequent to initial recognition investments are valued as follows:
- Held for trading
These are measured at subsequent reporting dates at fair value. Gains and losses on remeasurement are
included in the net profit and loss for the year.
- Held to maturity
These are measured at amortised cost using the effective profit rate method, less any impairment loss
recognised to reflect irrecoverable amount.

In accordance with the requirements specified by the SBP, quoted securities (other than those classified as 'held
to maturity' and 'investments in associates and subsidiary'), are subsequently re-measured to market value.
Unquoted equity securities are valued at the lower of cost and break-up value. Break-up value of unquoted equity
securities is calculated with reference to the net assets of the investee company as per the latest available audited
financial statements. Investment in other unquoted securities are valued at cost less impairment losses, if any.
Surplus / deficit arising on revaluation of quoted securities which are classified as 'available for sale', is included
in the Statement of Comprehensive. On derecognition of available for sale investments, the cumulative gain or
loss previously reported in other comprehensive income is transferred to profit and loss for period within statement of
comprehensive income.
- Investments in associates and subsidiary
Investment in associates and subsidiary is carried at cost less accumulated impairment losses, if any.
6.4.5 Impairment
Available for sale and Held to maturity investments
Impairment loss in respect of investments classified as available for sale and held to maturity (except sukuk
certificates) is recognised based on management's assessment of objective evidence of impairment as a result of
one or more events that may have an impact on the estimated future cash flows of the investments. A significant or
prolonged decline in fair value of an equity investment below its cost is also considered an objective evidence of
impairment. Provision for diminution in the value of sukuk certificates is made as per the Prudential Regulations
issued by the SBP. In case of impairment in available-for-sale investments, the cumulative gain or loss previously
reported in other comprehensive income is transferred to profit and loss for period. For investments classified as
held to maturity, the impairment loss is recognised in the profit and loss account.
Investment in associates and subsidiary
In respect of investment in associates and subsidiary, the Bank reviews their carrying values at each reporting date
to assess whether there is an indication of impairment.
Such indication may include significant and prolonged decline in the market value, significant changes with an
adverse impact on the entity, carrying amount of net assets in excess of market capitalisation etc. Management
also takes into account that these investments are held for long term and therefore considers decline of up to 40%
in value (applying significant decline criteria) and up to 12 months (for applying prolonged criteria) for the purposes
of assessing significant and prolonged decline for listed investments. However, any threshold should be justifiable
in view of other factors present for the entity. The amount of impairment loss would be determined based on the
higher of value in use and fair value less cost to sell. Impairment loss is recognised in the profit and loss account.
6.4.6 Cost of investment is determined on moving average basis.
6.5 Operating fixed assets
6.5.1 Tangible assets
Tangible operating fixed assets are stated at cost less accumulated depreciation and any identified impairment
loss. Items of fixed assets costing Rs 20,000 or less are not capitalised and are charged off in the month of purchase.
Profit or loss on disposal of fixed assets is included in the profit and loss account currently.
6.5.2 Intangible assets
Intangible assets comprise of computer software. Intangible assets with definite useful lives are stated at cost less
accumulated amortisation and impairment losses (if any).
6.5.3 Subsequent costs
Subsequent costs are included in the asset's carrying amounts or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Bank and the cost of
the item can be measured reliably. All other repairs and maintenance expenditure are charged to the profit and
loss account as and when incurred.

6.5.4 Depreciation / amortisation
Depreciation / amortisation is charged to the profit and loss account by applying the straight line method in accordance
with the rates specified in notes 12.2 and 13 whereby the depreciable value of an asset is written off over its estimated
service life. The Bank charges depreciation / amortisation from the month of acquisition and upto the month preceding
the disposal.
6.5.5 Capital work-in-progress
Capital work-in-progress is stated at cost less accumulated impairment losses, if any.
6.5.6 Useful lives and residual values
Useful lives and residual values are reviewed at each Statement of Financial Position date and adjusted if impact
on depreciation / amortisation is significant.
6.5.7 Impairment
The Bank assesses at each Statement of Financial Position date whether there is any indication that the operating
fixed assets may be impaired. If such indication exists, the carrying amounts of such assets are reviewed to assess
whether they are recorded in excess of their recoverable amounts. Where carrying values exceed the respective
recoverable amounts, assets are written down to their recoverable amounts and the resulting impairment charge
is recognised in the profit and loss account.
6.6 Taxation
Income tax expense comprises of current and deferred tax. Income tax expense is recognised in the profit and loss account
except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current
The charge for current taxation is based on expected taxable income for the year at the current rates of taxation, after taking
into consideration available tax credits, rebates, tax losses, etc. The charge for current tax also includes adjustments to tax
payable in respect of previous years including those arising from assessments finalised during the year and are separately
disclosed.
Deferred
Deferred tax is recognised using the balance sheet method, providing for temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and amounts used for taxation purposes. Deferred tax is
not recognised for the temporary differences relating to initial recognition of goodwill, initial recognition of assets or liabilities
in a transaction that is not a business combination and that affects neither accounting nor taxable profits and differences
relating to investments in subsidiaries to the extent that they probably will not reverse in the foreseeable future.
Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse,
based on the laws that have been enacted or substantively enacted by the reporting date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against
which the assets can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent
that it is no longer probable that the related tax benefits will be realised.
6.7 Non-banking assets acquired in satisfaction of claims
The non banking assets acquired in satisfaction of claims are carried at revalued amounts less accumulated depreciation.
These assets are revalued by professionally qualified valuers with sufficient regularity to ensure their net carrying value does not
differ materially from their fair value. Surplus arising on revaluation of property, if any, is credited to the 'surplus on revaluation of
assets' account in the statement of comprehensive income. Any deficit arising on revaluation is taken to profit and loss
account directly. On derecognition of the assets, the cumulative gain or loss previously reported in other comprehensive
income is transferred directly to unappropriated profit in the statement of financial position. Legal fees, transfer cost and
direct cost of acquiring title to property is charged to the profit and loss account.

6.8 Deposits
Deposits are generated on the basis of two modes i.e. Qard and Mudaraba.
Deposits taken on Qard basis are classified as 'Current accounts' and Deposits generated on Mudaraba basis are classified as
'Savings deposits' and 'Fixed deposits'. No profit or loss is passed on to current account depositors, however the funds of
current accounts are treated as equity for the purpose of profit calculation and any profit earned / loss incurred on those
funds are allocated to the equity of the Bank. While the product features of each product differ, there is usually no restriction
on withdrawals or number of transactions in current and saving accounts. In case of fixed deposits, pre-mature withdrawals
can be made as per approved terms only.
Profits realised in investment pools are distributed in pre-agreed profit sharing ratio. Rab-ul-Maal share is distributed among
depositors according to weightages assigned at the inception of profit calculation period. Mudarib can distribute its share
of profit to Rab-ul-Maal upto a maximum of 50% of their profit as Incentive profits (Hiba).
Profits are distributed from the pool such that the depositors (remunerative) only bear the risk of assets in the pool during
the profit calculation period. In case of loss in a pool during the profit calculation period, the loss is distributed among the
depositors (remunerative) according to their ratio of Investments.
Asset pools are created at the Bank’s discretion and the Bank can add, amend, transfer an asset to any other pool in the
interests of the deposit holders.
6.9 Sub-ordinated Sukuk
The Bank records sub-ordinated sukuk initially at the amount of proceeds received. Profit accrued on sub-ordinated sukuk
is charged to the profit and loss account.
6.10 Pool Management
The Bank operates general and specific pools for deposits and inter-bank funds accepted / acquired under Mudaraba and
Musharakah modes.
Under the general deposits pools, the Bank accepts funds on Mudaraba basis from depositors (Rab-ul-Maal) where the
Bank acts as Manager (Mudarib) and invests the funds in the Shariah Compliant modes of financing, investments and
placements. When utilising investing funds, the Bank prioritizes the funds received from depositors over the funds generated
from own sources after meeting the regulatory requirement relating to such deposits.
Specific pools are operated for funds acquired / accepted from the State Bank of Pakistan and other banks for Islamic
Export Refinance to the Bank's customers and liquidity management respectively under the Musharakah / Mudaraba
modes.
The profit of each deposit pool is calculated on all the remunerative assets booked by utilising the funds from the pool after
deduction of expenses directly incurred in earning the income of such pool along with related fee income, if any. The directly
related costs comprise of depreciation on ijarah assets, takaful premium, documentation charges etc. No expense of general or
administrative nature is charged to the pools. No provisions against any non-performing asset of the pool is passed on to
the pool except on the actual loss / write-off of such non-performing asset. The profit of the pool is shared between equity
and other members of the pool on the basis of Musharakah at gross level (before charging of mudarib fee) as per the
investment ratio of the equity. The profit of the pool is shared among the members of the pool on pre-defined mechanism
based on the weightages announced before the profit calculation period after charging of mudarib fee. During the year,
the Bank has given General Hiba to the depositors of PKR General Pool, keeping in view the prescribed guidelines of Pool
Management provided by the SBP and with the approval of the Bank's Resident Shariah Board Member. However, Hiba
are given at the sole discretion of the Bank without any contractual commitment and can be withdrawn or reduced by the
Bank at its sole discretion.
The risk characteristic of each pool mainly depends on the assets and liability profile of each pool. As per the Bank's policy,
relatively low risk / secured financing transactions and assets are allocated to general depositors pool of PKR, USD, GBP
and Euro. The Bank maintains General Pools (PKR, USD, EUR, GBP), FI Pools, IERS pool and Equity pool. The general
pools are exposed to general credit risk, asset ownership risk and profit rate risk of the underlying assets involved.
General Pools:
For General Pools (PKR, USD, EUR, GBP), the Bank allocates PKR financing to Corporate, SME and Consumer
Finance customers in diversified sectors and avenues of the economy / business as mentioned in note 46.1.1.3.

Investments in Sovereign Guarantee Sukuk, Bai Muajjal with State Bank of Pakistan, are also done through General
Pools. All remunerative deposits are tagged to these general pools and their funds generated from the depositors
are invested on priority basis. Due to limited investment options in USD, GBP and EURO pool, funds from FCY pools
are invested in available International Sukuk, Shariah Compliant Nostro accounts and the remaining funds are taken
out and invested in PKR general pool as part of equity. In such cases return from PKR General Pool is given back
to FCY pools, so that returns can be passed on to FCY pool customers accordingly.
IERS Pools:
The IERS pool assets comprise of Sovereign Guarantee Sukuk, and financing to/ sukuk of blue chip companies
and exporters as allowed under the applicable laws and regulations, and as such are exposed to lower credit risk.
The Musharakah with SBP under IERS is tagged to the IERS pool.
FI Pools:
The FI pool assets generally comprise of Sovereign Guarantee Sukuk and financing under diminishing musharakah
mode only and the related liability of the FI pool comprise of Musharakah / Mudarabah from other banks and financial
institutions. These pools are created to meet the liquidity requirements of the Bank.
Equity Pools:
All other assets including fixed assets, exposure in shares, PKR bai-salam financing and subsidized financing to
the Bank's employees are tagged to equity pool. To safeguard the interest of customers, all high risk investments
are done through equity pool. The Bank as Mudarib in the general pools is responsible for financing costs / assets
such as land, building, furniture, fixtures, computers and IT system from its own sources / equity.
6.11 Staff retirement benefits
Defined benefit plan
The Bank operates an approved funded gratuity scheme for its permanent employees. The scheme was approved by the
tax authorities in April 2000. The liability recognised in the Statement of Financial Position in respect of defined benefit
gratuity scheme is the present value of the defined benefit obligation at the Statement of Financial Position date less the fair
value of plan assets. Contributions to the fund are made on the basis of actuarial recommendations. The defined benefit
obligation is calculated periodically by an independent actuary using the projected unit credit method. Last valuation was
conducted as on December 31, 2018.
The Bank also operates End of Service unfunded defined benefit scheme as approved by the Board of Directors for the
benefit of the founding President and Chief Executive Officer of the Bank. The defined benefit obligation for this benefit has
been calculated by an independent actuary using the projected unit credit method. The valuation has been carried out on
December 31, 2018.
Amounts arising as a result of "Remeasurements", representing the actuarial gains and losses and the difference between
the actual investment returns and the return implied by the net interest cost are recognised in the Statement of Financial
Position immediately, with a charge or credit to "Other Comprehensive Income" in the periods in which they occur.
Defined contribution plan
The Bank also operates a recognised contributory provident fund for all permanent employees. Equal monthly contributions
are made, both by the Bank and the employees, to the fund at a rate of 10% of basic salary.
6.12 Compensated absences
The Bank recognises liability in respect of employees compensated absences in the period in which these are earned upto
the date of Statement of Financial Position. The provision is recognised on the basis of actuarial valuation using projected
unit credit method.
6.13 Dividend and reserves
Dividend declared and appropriations, except for transfer to statutory reserve, made subsequent to the date of Statement
of Financial Position are considered as non adjusting events and are recorded in the financial statements in the year in
which these are approved by the directors / shareholders as appropriate.

6.14 Foreign currency transactions
Transactions and balances
Foreign currency transactions are recorded in rupees at exchange rates prevailing on the date of transaction. Monetary
assets, monetary liabilities and contingencies and commitments in foreign currencies except forward contracts are reported in
Rupees at exchange rates prevalent on the Statement of Financial Position date.
Forward contracts other than contracts with the SBP relating to the foreign currency deposits are valued at forward rates
applicable to the respective maturities of the relevant foreign exchange contracts. Forward contracts with the SBP relating
to foreign currency deposit, are valued at spot rate prevailing at the Statement of Financial Position date. Exchange gains
and losses are included in the profit and loss account currently.
Commitments
Commitments for outstanding forward foreign exchange contracts are disclosed at the rates applicable at the reporting
date. Contingent liabilities / commitments for letters of credit, and letters of guarantee denominated in foreign currencies
are expressed in rupee terms at the exchange rates ruling on the reporting date.
Translation gains and losses are included in the profit and loss account.
6.15 Provisions and contingent assets and liabilities
Provisions are recognised when the Bank has a present legal or constructive obligation arising as a result of past events
and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a
reliable estimate of the amount of the obligation can be made. Provisions are reviewed at each date of Statement of Financial
Position and are adjusted to reflect the current best estimate.
Contingent assets are not recognised, and are also not disclosed unless an inflow of economic benefits is probable.
Contingent liabilities are not recognised and are disclosed unless the probability of an outflow of resources embodying
economic benefits are remote.
6.16 Acceptances
Acceptances comprise undertakings by the Bank to pay bills of exchange drawn on customers. The Bank expects most
acceptances to be settled simultaneously with the reimbursement from the customers. Acceptances are accounted for as
on-balance sheet transactions and related balances are disclosed under other assets and other liabilities.
6.17 Offsetting
Financial assets and financial liabilities are offset and the net amount is reported in the Statement of Financial Position when
there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or
realise the asset and settle the liability simultaneously.
Income and expenses are presented on a net basis only when permitted by the approved accounting standards as applicable
in Pakistan.
6.18 Revenue recognition
i) Profit on Murabaha (including Commodity Murabaha) and Musawammah is recognised on an accrual basis. Profit
on murabaha and musawammah transactions for the period from the date of disbursement to the date of culmination of
murabaha is recognised immediately upon the later date.
ii) Rental on Ijarah contracts under Islamic Financial Accounting Standard - 2 Ijarah (IFAS 2) are recognised as income on
an accrual basis.
iii) Profit on Bai Muajjal transaction is recognised on an accrual basis.
iv) Profit on Diminishing Musharakah financing is recognised on an accrual basis.
v) Profit on Running Musharakah financing is booked on an accrual basis and is adjusted upon declaration of profit
by Musharakah partners.
vi) Profit on Tijarah and Istisna financing is recognised on an accrual basis commencing from time of sale of goods till
the realisation of sale proceeds by the Bank.
vii) Profit on Service Ijarah is recognised on an accrual basis commencing from the date of confirmation of sale.
viii) Profit on Wakalah tul Istithmar / Wakalah is recognized on an accrual basis and is adjusted upon actual declaration
of wakalah business performance by the agent.

ix) Profit on Sukuk is recognised on an accrual basis. Where Sukuk (excluding held for trading securities) are purchased at
a premium or discount, those premiums / discounts are amortised through the profit and loss account over the
remaining maturity.
x) Commission on letters of credit, acceptances and guarantees is recognised on receipt basis, except for commission on
guarantees in excess of Rs. 200,000 which is recognised over the period of the guarantee. Fee and brokerage
income are recognised when earned.
xi) Dividend income is recognised when the Bank’s right to receive dividend is established.
xii) Gain or loss on sale of investments is included in the profit and loss account.
xiii) Gain or loss on disposal of operating fixed assets, ijarah assets and musharaka assets, if any, is taken to the
profit and loss account in the period in which they arise.
xiv) Profit suspended in compliance with the Prudential Regulations issued by the SBP is recorded on receipt basis.
Profit on rescheduled / restructured financing and investments are recognised as permitted by the SBP.
6.19 Segment reporting
A segment is a distinguishable component of the Bank that is engaged in providing products or services (business
segment) or in providing products or services within a particular economic environment (geographical segment), which
is subject to risks and rewards that are different from those of other segments. The Bank's primary format of reporting is
based on business segments. Operating segments are reported in a manner consistent with the internal reporting provided
to the management. Management monitors the operating results of its business segments separately for the purpose of
making decisions about resource allocation and performance assessment.
6.19.1 Business segments
Corporate and Commercial Banking
It includes project finance, export finance, trade finance, Ijarah, guarantees and bills of exchange relating to its
Corporate and Commercial customers, investment banking, syndications, IPO related activities (excluding
investments), secondary private placements, underwriting and securitisation.
Retail Banking
It includes retail financing, deposits and banking services offered to its retail customers and small and medium
enterprises.
Trading and Sales
It includes equity, foreign exchanges, commodities, own securities and placements.
Others
It includes functions which cannot be classified in any of the above segments.
6.19.2 Geographical segments
The Bank operates only in Pakistan.
6.20 Impairment
The carrying amount of the assets are reviewed at each Statement of Financial Position date to determine whether there
is any indication of impairment. If such indication exists, the recoverable amount of the relevant asset is estimated. An
impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. Impairment
losses are recognised in the profit and loss account. An impairment loss is reversed if the reversal can be objectively
related to an event occurring after the impairment loss was recognised.
6.21 Earnings per share
The Bank presents basic and diluted earnings per share (EPS). Basic EPS is calculated by dividing profit after tax for
the year attributable to equity holders of the Bank by the weighted average number of ordinary shares outstanding during
the year.
Diluted EPS is calculated by dividing the net profit of Bank (after adjusting for return - net of tax) on the convertible
instruments by the weighted average number of ordinary shares outstanding during the year plus the weighted average
number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary
shares.

Note 2018 2017
7 CASH AND BALANCES WITH TREASURY BANKS Rupees in ‘000
In hand
- local currency 10,754,777 16,244,335
- foreign currencies 2,122,435 2,515,745
With the State Bank of Pakistan in

- local currency current accounts 7.1 25,130,062 25,011,106
- foreign currency current accounts 7.1 5,305,332 4,100,803
With the National Bank of Pakistan in

- local currency current accounts 21,709,435 16,684,181
65,022,041 64,556,170
7.1 These include local and foreign currency amounts required to be maintained by the Bank with the SBP as stipulated by
the SBP. These accounts are non-remunerative in nature.
Note 2018 2017

8 BALANCES WITH OTHER BANKS
Rupees in ‘000
In Pakistan
- in current accounts 5,858,646 3,699,377
Outside Pakistan
- in deposit accounts 8.1 307,001 111,905
8,255,187 4,895,816
8.1 The return on these balances is around 0.85% (2017: 0.58%) per annum.
Note 2018 2017

9 DUE FROM FINANCIAL INSTITUTIONS - NET
Rupees in ‘000
Bai Muajjal:
With Scheduled Banks - Secured 9.1 184,814,600 142,229,221
With other Financial Institution 15,500 15,500
9.2 184,830,100 142,244,721
Musharakah - Secured - 5,000,000
Commodity Murabaha 26,066 26,066
184,856,166 147,270,787
Provision against non-performing amounts due from financial institutions 9.4 (41,566) (41,566)
184,814,600 147,229,221
9.1 The average return on this product is 7.87% (2017: 5.80%) per annum. The balances have maturities ranging between
January 2019 to April 2019 (2017: January 2018 to November 2018). These Bai Muajjal are secured against Federal
Government securities received as collateral and having market value of Rs 179,574 million as at December 31, 2018
(2017: Rs 146,067 million).

2018 2017
Rupees in ‘000
9.2 Bai Muajjal Placements 191,381,750 150,162,125

Less: Deferred Income (1,137,552) (3,440,686)
Profit Receivable shown in other assets (5,414,098) (4,476,718)
Bai Muajjal Placements 184,830,100 142,244,721
9.3 Particulars of due from financial institutions

In local currency 184,814,600 147,229,221
In foreign currencies - -
184,814,600 147,229,221
2018 2017
Non-performing Provision Non-performing Provision
due from financial held due from financial held
institutions institutions
9.4 Category of classification Rupees in ‘000
Loss 41,566 41,566 41,566 41,566

41,566 41,566 41,566 41,566
10 INVESTMENTS - NET
10.1 Investments by types

Note 2018 2017
Cost / Provision Surplus / Carrying Cost / Provision Surplus / Carrying
Amortised for (Deficit) Value Amortised for (Deficit) Value
cost diminution cost diminution
Rupees in ‘000
Available for sale securities
- Federal Government Securities 10.5.1 61,420,405 - (271,470) 61,148,935 56,895,331 - 256,195 57,151,526
- Shares (including units of fund) 10.5.2 & 10.5.3 5,981,168 1,104,210 277,249 5,154,207 5,267,798 785,762 858,330 5,340,366
- Non Government Sukuk 10.5.4 21,246,732 170,635 - 21,076,097 21,911,179 181,682 - 21,729,497
- Foreign Securities 10.5.5 7,576,263 - (110,446) 7,465,817 5,036,688 - 22,358 5,059,046
96,224,568 1,274,845 (104,667) 94,845,056 89,110,996 967,444 1,136,883 89,280,435
Held to maturity securities
- Federal Government Securities 10.6 28,000,000 - - 28,000,000 28,000,000 - - 28,000,000
In related parties
Subsidiary (unlisted)
- Shares 10.1.1 63,050 - - 63,050 63,050 - - 63,050
Associates (listed)
- Units of funds 10.1.1 834,761 - - 834,761 1,894,761 - - 1,894,761
Total Investments 125,122,379 1,274,845 (104,667) 123,742,867 119,068,807 967,444 1,136,883 119,238,246

10.1.1 Details of investment in subsidiary and associates
2018
Percentage Assets Liabilities Revenue Profit / (Loss) Total Market
of after taxation comprehensive Value
holding income / (loss)
Rupees in ‘000
Al Meezan Investment Management Limited 65% 3,525,273 649,746 1,474,704 504,222 496,537 N/A
Associates (listed and open ended)

Meezan Balanced Fund 4% 6,844,559 144,844 (149,885) (370,344) (372,085) 271,969
Al Meezan Mutual Fund Limited 6% 6,291,952 214,737 (594,757) (815,586) (827,804) 342,821
Meezan Islamic Fund 2% 33,901,644 1,302,695 (3,352,098) (4,577,270) (4,573,578) 692,116
Meezan Gold Fund 20% 331,830 9,798 70,917 60,278 60,278 64,150
KSE Meezan Index Fund 8% 1,627,605 75,574 (185,845) (216,065) (216,065) 127,427
2017
Percentage Assets Liabilities Revenue Profit / (Loss) Total Market
of after taxation comprehensive Value
holding income / (loss)
Rupees in ‘000
Al Meezan Investment Management Limited 65% 4,295,452 875,631 1,305,674 331,266 328,424 N/A
Associates (listed and open ended)

Meezan Balanced Fund 4% 8,118,084 118,921 (725,052) (579,150) (672,507) 287,267
Al Meezan Mutual Fund Limited 6% 7,088,314 148,800 (1,052,198) (1,109,652) (1,529,245) 389,064
Meezan Islamic Fund 2% 41,491,060 1,195,075 (8,052,733) (7,388,427) (8,707,150) 786,427
Meezan Cash Fund 6% 8,628,012 283,327 353,106 240,216 240,216 530,103
Meezan Islamic Income Fund 5% 11,534,132 540,312 655,880 274,329 274,329 530,508
Meezan Gold Fund 14% 403,341 21,180 37,027 22,194 22,194 51,640
KSE Meezan Index Fund 9% 1,624,799 31,854 (398,489) (174,569) (174,569) 145,221
Subsidiary and associates are incorporated in Pakistan. Shares in subsidiary are placed in custody account with Central Depository of Pakistan and cannot
be sold without the prior approval of Securities Exchange Commission of Pakistan (SECP) in accordance with the SECP's circular No. 9 of 2006 dated
June 15, 2006. .

10.2 Investments by segments

Note 2018 2017
Rupees in ‘000
Federal Government Securities
- Sukuk 10.5.1 & 10.6 46,986,693 - (271,470) 46,715,223 84,895,331 256,195 85,151,526
- Bai Muajjal with Government of Pakistan
(through State Bank of Pakistan) 10.5.1 42,433,712 - - 42,433,712 - - - -
89,420,405 - (271,470) 89,148,935 84,895,331 - 256,195 85,151,526
Shares
- Listed Companies 10.5.2 5,080,386 1,008,968 275,766 4,347,184 4,367,016 698,328 857,391 4,526,079
- Units of funds 10.5.2 50,000 - 1,483 51,483 50,000 - 939 50,939
- Unlisted Companies 10.5.3 850,782 95,242 - 755,540 850,782 87,434 - 763,348
5,981,168 1,104,210 277,249 5,154,207 5,267,798 785,762 858,330 5,340,366
Non Government Sukuk
- Unlisted 10.5.4 21,246,732 170,635 - 21,076,097 21,911,179 181,682 - 21,729,497
Foreign Securities
- Government Sukuk 10.5.5 4,788,337 - (61,003) 4,727,334 3,376,124 - 47,078 3,423,202
- Non Government Sukuk 10.5.5 2,777,537 - (49,443) 2,728,094 1,657,222 - (24,720) 1,632,502
- Shares 10.5.5 10,389 - - 10,389 3,342 - - 3,342
7,576,263 - (110,446) 7,465,817 5,036,688 - 22,358 5,059,046
Associates
Meezan Balanced Fund 161,345 - - 161,345 161,345 - - 161,345
Al Meezan Mutual Fund Limited 302,366 - - 302,366 302,366 - - 302,366
Meezan Islamic Fund 221,050 - - 221,050 221,050 - - 221,050
Meezan Cash Fund - - - - 530,000 - - 530,000
Meezan Islamic Income Fund - - - - 530,000 - - 530,000
Meezan Gold Fund 50,000 - - 50,000 50,000 - - 50,000
KSE Meezan Index Fund 100,000 - - 100,000 100,000 - - 100,000
834,761 - - 834,761 1,894,761 - - 1,894,761
Subsidiary
Al Meezan Investment Management
Limited 10.7 63,050 - - 63,050 63,050 - - 63,050
2018 2017
Rupees in ‘000
10.3 Provision against diminution in value of investments
Opening balance 967,444 380,712
Charge / (reversals) for the year

On available for sale securities
- charge for the year 505,484 605,434
- reversals for the year upon recovery on debt instruments (11,047) -
- reversals on disposals (187,036) (18,702)
307,401 586,732
Closing balance 1,274,845 967,444
10.4 Particulars of provision against Sukuk
2018 2017

Investment held Investment held
Rupees in ‘000
Category of classification
Loss 170,635 170,635 181,682 181,682
170,635 170,635 181,682 181,682

10.5 Quality of Available for Sale Securities
Details regarding quality of Available for Sale (AFS) securities are as follows:
Cost
2018 2017
Rupees in ‘000
10.5.1 Federal Government Securities - Government guaranteed
GoP Ijarah Sukuk - GISF-1 3,005,830 1,973,172

GoP Ijarah Sukuk - GISF-2 89,889 89,843
GoP Ijarah Sukuk - GIS-16 - 40,052,437
Bai Muajjal with Government of Pakistan
(through State Bank of Pakistan) 42,433,712 -
61,420,405 56,895,331
10.5.2 Shares and units of funds - Listed
Automobile Assembler 183,786 91,345

Construction and materials (cement) 1,144,900 1,135,048
Power Generation & Distribution 224,084 251,576
Refinery - 82,060
Oil and gas marketing 613,808 509,098
Oil & Gas Exploration Companies 1,051,875 709,050
Fertilizers 568,756 525,736
Chemicals 236,346 100,258
Pharmaceuticals 358,048 225,074
Mudarabas 66,390 66,390
Technology & Communication 51,889 3,229
Paper & Board 306,866 280,946
Textile (Composite) 45,328 3,521
Glass & Ceramics 24,931 -
Vanaspati & Allied Industries 36,207 -
Food & Personal Care Products 4,701 45,861
Cable & Electrical Goods - 174,808
Engineering 162,471 162,993
Units of open end funds 50,000 50,000
Miscellaneous - 23
5,130,386 4,417,016
Cost Breakup value per share*

10.5.3 Unlisted Companies
2018 2017 2018 2017
Rupees in ‘000 Rupees
Fatima Energy Limited 250,553 250,553 9.40 9.70

Sapphire Electric Company Limited 318,864 318,864 29.10 23.70
Daewoo Pakistan Express Bus Service Limited 253,240 253,240 58.70 50.40
Pak Kuwait Takaful Company Limited 28,125 28,125 0.60 0.60
850,782 850,782
* Based on latest available audited financial statements

10.5.4 Non Government Sukuk - Unlisted Cost

2018 2017
Rupees in ‘000
Credit Ratings
- AAA / AAA 10,128,470 8,547,204
- AA / AA+, AA, AA- 3,428,333 11,790,000
- A / A+, A, A- 7,519,294 1,392,293
- Unrated 170,635 181,682
21,246,732 21,911,179
2018 2017
10.5.5 Foreign Securities - Government Sukuk Cost Rating Cost Rating
Rupees Rupees
in ‘000 in ‘000
Hong Kong 694,270 AA+ 552,010 AA+
Saudi Arabia 1,267,122 A2 572,921 A2
Qatar 701,777 A+ / AA3 559,513 A+ / AA3
Luxembourg 39,709 AAA 33,063 AAA
Indonesia 2,085,459 BAA2 1,658,617 BAA3
4,788,337 3,376,124
Non Government Sukuk - Unlisted Cost

2018 2017
Rupees in ‘000
Credit Ratings
- AA+, AA, AA- 2,085,012 1,107,334
- A+, A, A- 692,525 549,888
2,777,537 1,657,222
Equity securities - Unlisted
S.W.I.F.T. SCRL 10,389 3,342
10.6 Particulars relating to Held to Maturity securities are as follows:

Cost
2018 2017
Federal Government Securities - Government guaranteed Rupees in ‘000
The market value of securities classified as held to maturity as at December 31, 2018 amounted to Rs 27,910 million
(December 31, 2017: Rs 28,207 million).

10.7 Investment in subsidiary 2018 2017 2018 2017
Al Meezan Investment Management Limited 63,050 63,050 575.11 686.23

Note 2018 2017
Rupees in ‘000
11 ISLAMIC FINANCING AND RELATED ASSETS
In Pakistan
Murabaha financing and related assets
- Murabaha financing 11.1 8,021,609 7,854,995
- Advances against Murabaha 7,657,780 6,487,946
- Murabaha inventory 3,818,550 4,573,868
- Financing under Islamic Export Refinance - Murabaha 11.2 344,573 599,862
- Advance against Islamic Export Refinance - Murabaha 130,491 236,121
19,973,003 19,752,792
Running Musharakah financing
- Running Musharakah financing 142,433,085 132,032,737
- Financing under Islamic Export Refinance - Running Musharakah 16,430,165 13,882,800
158,863,250 145,915,537
Istisna financing and related assets
- Istisna financing 3,440,669 2,432,621
- Advances against Istisna 56,972,563 44,548,652
- Istisna inventory 8,069,320 3,352,093
- Financing under Islamic Export Refinance - Istisna 74,732 170,111
- Advances under Islamic Export Refinance - Istisna 4,388,971 5,489,701
- Inventory under Islamic Export Refinance - Istisna 508,535 1,076,361
73,454,790 57,069,539
Tijarah financing and related assets
- Tijarah financing 394,041 498,305
- Tijarah inventory 12,371,614 7,213,736
- Financing under Islamic Export Refinance - Tijarah 364,949 254,802
- Inventory under Islamic Export Refinance - Tijarah 271,085 217,500
13,401,689 8,184,343
Musawammah financing and related assets
- Musawammah financing 11.3 12,450,345 6,468,792
- Musawammah Inventory 9,890,657 5,272,054
- Advances against Musawammah 16,505,491 7,523,238
- Financing under Islamic Export Refinance - Musawammah 11.4 875,001 95,308
- Advances under Islamic Export Refinance - Musawammah 124,950 111,350
39,846,444 19,470,742
Salam Financing and related assets
- Salam Financing 590,001 464,337
- Salam Inventory 1,659,072 77,200
- Advances against Salam 7,281,394 3,595,916
9,530,467 4,137,453
Financing against bills
- Financing against bills - Salam 5,725,100 11,834,926
- Advance against bills - Salam 1,738 1,738
5,726,838 11,836,664
Bai Muajjal financing 11.5 569,632 705,642
Ijarah Financing and Related Assets
- Net investment in Ijarah 116,259 124,058
- Net book value of assets / investment in Ijarah under IFAS 2 11.6 46,836,155 31,019,341
46,952,414 31,143,399
- Advances against Ijarah 6,253,140 5,389,253
53,205,554 36,532,652
Diminishing Musharakah financing and related assets
- Diminishing Musharakah financing - housing 14,150,878 11,991,953
- Diminishing Musharakah financing - others 74,800,828 65,438,474
- Advances against Diminishing Musharakah 8,490,933 7,125,407
- Advances against Diminishing Musharakah under SBP's ILTFF 490,628 -
97,933,267 84,555,834
Musharakah financing 414,800 580,720
Wakalah Tul Istithmar financing 40,825,200 31,250,000
Wakalah financing 475,000 -
Advance against Service Ijarah 2,000,000 3,000,000
Labbaik (Qard for Hajj and Umrah) 5,153 3,382
Staff financing 11.7 3,712,540 3,226,026
Other financing 2,326,136 2,612,204
Gross Islamic Financing and Related Assets 11.8 522,263,763 428,833,530
Less: Provision against non-performing Islamic financing and related assets - Specific 11.10 (6,771,530) (6,426,731)
Less: Provision against non-performing Islamic financing and related assets - General 11.10 (2,927,711) (2,377,711)
Islamic financing and related assets - net of provision 512,564,522 420,029,088

Note 2018 2017
Rupees in ‘000
11.1 Murabaha receivable - gross 11.1.1 8,434,743 8,222,190

Less: Deferred murabaha income 11.1.3 (142,250) (110,813)
Profit receivable shown in other assets (270,884) (256,382)
Murabaha financing 8,021,609 7,854,995
11.1.1 Murabaha Sale Price 8,434,743 8,222,190

Murabaha Purchase Price (8,021,609) (7,854,995)
413,134 367,195
11.1.2 The movement in Murabaha financing during the year is as follows:

Opening balance 7,854,995 7,786,937
Sales during the year 47,580,002 45,081,030
Adjusted during the year (47,413,388) (45,012,972)
Closing balance 8,021,609 7,854,995
11.1.3 Deferred murabaha income

Arising during the year 1,218,659 1,049,935
Recognised during the year (1,187,222) (1,058,464)
Closing balance 142,250 110,813
11.2 Financing under Islamic Export Refinance - Murabaha - gross 353,984 613,210
Less: Deferred income (1,725) (1,848)
Financing under Islamic Export Refinance - Murabaha 344,573 599,862
11.2.1 The movement in Islamic Export Refinance Murabaha

financing during the year is as follows:
Sales during the year 684,949 1,045,436
Adjusted during the year (940,238) (1,169,530)
11.2.2 Deferred Islamic Export Refinance Murabaha Income

Arising during the year 9,507 10,432
Recognised during the year (9,630) (13,200)
11.3 Musawammah financing - gross 12,998,576 6,688,479

Musawammah financing 12,450,345 6,468,792
11.4 Financing under Islamic Export Refinance - Musawammah - gross 885,568 96,526
Less: Deferred income (4,387) (604)
Profit receivable shown in other assets (6,180) (614)
Financing under Islamic Export Refinance - Musawammah 875,001 95,308
11.5 Bai Muajjal financing - gross 615,345 773,092

Bai Muajjal financing 569,632 705,642
11.6 Net book value of assets / investments in Ijarah under IFAS 2 is net of depreciation of Rs 25,267 million (2017: Rs 16,248 million)
11.7 This includes Rs 484 million (2017: Rs 434 million) representing profit free financing to staff advanced under the Bank's
Human Resource Policies.

11.8 Particulars of financing - gross
2018 2017
Rupees in ‘000
In
- local currency 513,035,591 416,337,338
522,263,763 428,833,530
11.9 Islamic financing and related assets include Rs 6,985 million (2017: Rs 6,606 million) which have been placed under non-performing
status as detailed below:
2018 2017
Non Provision Non Provision
Performing Held Performing Held
Amount Amount
Rupees in ‘000
Domestic
Other Assets Especially Mentioned 28,157 - 10,845 -
Substandard 137,429 30,927 176,553 40,636
Doubtful 49,514 8,523 16,588 6,068
Loss 6,770,142 6,732,080 6,402,143 6,380,027
6,985,242 6,771,530 6,606,129 6,426,731
11.10 Particulars of provision against non-performing Islamic financing and related assets:
2018 2017
Specific General Total Specific General Total
Rupees in ‘000
Opening balance 6,426,731 2,377,711 8,804,442 6,592,203 1,494,391 8,086,594

Charge for the year 552,977 550,000 1,102,977 116,422 883,320 999,742
Less: Reversals (208,111) - (208,111) (279,553) - (279,553)
344,866 550,000 894,866 (163,131) 883,320 720,189
Amount Written off (67) - (67) (2,341) - (2,341)
Closing balance 6,771,530 2,927,711 9,699,241 6,426,731 2,377,711 8,804,442
11.10.1 The Bank maintains general reserve (provision) in accordance with the applicable requirements of the Prudential Regulations
for Consumer Financing issued by the SBP.
In addition, the Bank has also maintained a general provision of Rs 2,525 million (2017: Rs 1,975 million) against financing
made on prudent basis, in view of prevailing economic conditions. This general provision is in addition to the requirements of
'Prudential Regulations’.
11.10.2 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. The accumulated benefit availed as at
December 31, 2018 amounts to Rs 17.9 million (2017: Rs 8.3 million). The additional profit arising from availing the FSV
benefit - net of tax amounts to Rs 11.6 million as at December 31, 2018 (2017: Rs 5.4 million). The increase in profit, due
to availing of the benefit, is not available for distribution of cash and stock dividend to share holders.

11.10.3 Particulars of provision against non-performing financing:
2018 2017
In local currency 6,515,997 2,927,711 9,443,708 6,184,124 2,377,711 8,561,835

In foreign currencies 255,533 - 255,533 242,607 - 242,607
6,771,530 2,927,711 9,699,241 6,426,731 2,377,711 8,804,442
Note 2018 2017

11.11 Particulars of write offs Rupees in ‘000
Against provisions 11.10 67 2,341

Directly charged to profit and loss account - -
67 2,341
Write offs Rs 500,000 and above - Domestic - 2,212

Write offs below Rs 500,000 - Domestic 67 129
67 2,341
11.11.1 Details of financing written off of Rs 500,000 and above

In term of sub-section (3) of section 33A of the Banking Companies Ordinance, 1962, the Statement in respect of
written off financing or any other financial relief of five hundred thousand rupees or above allowed to any person during
the year ended December 31, 2018 is given as Annexure-1.
Note 2018 2017

12 FIXED ASSETS
Rupees in ‘000
Capital work-in-progress 12.1 1,644,436 530,109

Property and equipment 12.2 11,484,690 10,832,759
13,129,126 11,362,868
12.1 Capital work-in-progress
Advances to suppliers and contractors for:

- civil works 1,009,074 237,106
- computer hardware 174,250 64,005
- purchase of Vehicles 152,864 153,158
- office machines 263,986 73,984
- furniture and fixtures 44,262 1,856
1,644,436 530,109

12.2 Property and equipment
2018
Leasehold Buildings on Leasehold Furniture Electrical, Vehicles Total
Land leasehold improvements and fixtures office and
land computer
equipments
Rupees in ‘000
At January 1, 2018
Cost 4,306,133 1,363,692 5,649,484 628,556 4,535,112 1,233,646 17,716,623

Accumulated depreciation - 441,612 2,295,990 329,680 3,270,980 545,602 6,883,864
Net book value 4,306,133 922,080 3,353,494 298,876 1,264,132 688,044 10,832,759
Year ended December 31, 2018
Opening net book value 4,306,133 922,080 3,353,494 298,876 1,264,132 688,044 10,832,759
Additions 271,880 151,180 254,184 47,670 833,224 665,656 2,223,794
Net book value of disposals - - (1,062) (282) (3,107) (52,575) (57,026)
Depreciation charge - (73,840) (519,618) (54,420) (592,918) (274,041) (1,514,837)
Net book value as at December 31, 2018 4,578,013 999,420 3,086,998 291,844 1,501,331 1,027,084 11,484,690
Cost 4,578,013 1,514,872 5,893,257 672,755 5,308,744 1,658,110 19,625,751

Rate of depreciation (percentage) - 5 10 10 10 and 20 20
2017
land computer
equipments
Rupees in ‘000
At January 1, 2017
Cost 1,719,600 1,330,757 5,005,849 555,923 4,175,135 1,087,524 13,874,788

Net book value 1,719,600 960,468 3,175,877 273,169 1,447,054 617,474 8,193,642
Additions 2,586,533 26,992 686,260 77,048 472,566 319,822 4,169,221
Other adjustments / transfers - (3,808) (13,252) 1,868 (64) 17,295 2,039
Net book value of disposals - - (10,775) (2,506) (5,069) (47,902) (66,252)
Net book value as at December 31, 2017 4,306,133 922,080 3,353,494 298,876 1,264,132 688,044 10,832,759

Cost 4,306,133 1,363,692 5,649,484 628,556 4,535,112 1,233,646 17,716,623
Rate of depreciation (percentage) - 5 10 10 10, 20 and 33 20
12.2.1 Included in cost of property and equipment are fully depreciated items still in use aggregating Rs 3,158 million
(2017: Rs 2,476 million).

12.2.2 During the current year, the Bank has revised its estimate of the useful lives of "Computer Equipments". Previously, computer
equipments were depreciated over period of 3 to 5 years and now these are being depreciated over 5 years. The revision
takes into account the expected pattern of economic benefits associated with the use of computer equipments and has
been accounted for as a change in accounting estimate in accordance with the requirements of International Accounting
Standard (IAS) 8 ‘Accounting policies, changes in accounting estimates and errors’. Had the revision in useful lives of
computer equipments not been made, the related depreciation expense for the year would have been higher by Rs 130.829
million and consequently profit before tax would have been lower by the same amount.
12.2.3 The bank has not carried out any revaluation of property and equipment at the recent date as the bank uses cost model for
measurement of its property and equipment.
12.2.4 Details of disposal of fixed assets to related parties or other persons having net book value of Rs 500,000 or above are as
follows:
Description Cost Accumulated Net book Sale Mode of Particulars of purchaser

depreciation value proceeds disposal
Rupees in ‘000
Vehicles
Honda Civic 2,358 1,730 628 1,260 MBL Staff Policy Mr. Muhammad Raza Sayeed (Ex-employee)
Honda Civic 2,358 1,493 865 1,322 MBL Staff Policy Mr. Rahim Bux Memon (Executive, Ex-employee)
Honda Civic 2,355 1,688 667 1,256 MBL Staff Policy Syed Salman Ahmed (Executive, Employee)
Toyota Corolla 1,788 835 953 1,192 MBL Staff Policy Mr. Kaleem Ahmed Riaz (Executive, Ex-employee)
Toyota Corolla 1,753 1,169 584 1,006 MBL Staff Policy Mr. Urooj Ul Hasan Khan (Executive, Employee)
Toyota Corolla 1,753 1,110 643 982 MBL Staff Policy Mr. Wise Ur Rehman (Executive, Employee)
Honda City 1,670 1,030 640 955 MBL Staff Policy Mr. Tariq Mehraj (Executive, Employee)
Honda City 1,651 770 881 1,183 MBL Staff Policy Mr. Kasim Najeebullah (Executive, Ex-employee)
Honda City 1,502 926 576 895 MBL Staff Policy Mr. Muhammad Saleem (Executive, Ex-employee)
Suzuki Swift 1,074 483 591 768 MBL Staff Policy Mr. Muhammad Bilal (Executive, Employee)
Toyota Fortuner 5,415 5,054 361 361 MBL Staff Policy Mr. Irfan Siddiqui (President & Chief Executive Officer)
Toyota Fortuner 5,410 5,410 - 1,623 MBL Staff Policy Mr. Ariful Islam (Deputy Chief Executive Officer)
Honda Civic 2,493 582 1,911 2,231 Negotiation Mr. Naheed Arshad Butt
Toyota Corolla 1,788 805 983 1,617 Negotiation Mr. Rizwan Mazhar
Honda City 1,507 879 628 1,080 Negotiation Mr. Amir Azeem
Honda City 1,675 391 1,284 1,598 Negotiation Mr. Maaz Saleem
Suzuki Cultus 1,250 208 1,042 1,122 Negotiation Mr. Arif Iftikhar
Suzuki Cultus 1,104 386 718 958 Negotiation Mr. Mohsin Mumtaz
Suzuki Cultus 1,099 275 824 939 Negotiation Mr. Amin Akhter
Suzuki Cultus 1,099 330 769 960 Negotiation Mr. Wasim Mirza
Suzuki Cultus 1,074 447 627 941 Negotiation Mr. Sultan Hasan Khan
Suzuki Cultus 1,074 519 555 932 Negotiation Mr. Muhammad Zaman
Suzuki Cultus 1,039 485 554 857 Negotiation Mr. Abid Rashid Chaudary
Suzuki Cultus 1,017 441 576 871 Negotiation Mr. Numeri Abrar
Suzuki Cultus 1,017 475 542 833 Negotiation Mr. Khurram Imtiaz
Suzuki Cultus 1,014 507 507 850 Negotiation Ms. Riffat Jabeen
Suzuki Cultus 1,014 507 507 836 Negotiation Mr. Zeeshan Jamil
Suzuki Cultus 1,012 506 506 731 Negotiation Mr. Naheed Arshad Butt
Suzuki Cultus 1,012 455 557 843 Negotiation Mr. Abrar Hussain
Suzuki Cultus 1,250 292 958 1,065 Negotiation Mr. Imran Subhani
Suzuki Cultus 1,104 442 662 921 Negotiation Mr. Naveed Hussain
Suzuki Cultus 1,099 256 843 831 Negotiation Syed Raza Naqvi
Suzuki Cultus 1,039 502 537 831 Negotiation Mr. Sadaqat Zia Jafri
Suzuki Wagon R 977 456 521 966 Negotiation Mr. Faheem Khan
Toyota Corolla 1,806 452 1,354 1,626 Takaful Claim M/s EFU General Insurance Limited
Honda City 1,520 811 709 1,243 Takaful Claim M/s EFU General Insurance Limited
Suzuki Cultus 1,250 250 1,000 1,125 Takaful Claim M/s EFU General Insurance Limited
Suzuki Cultus 1,129 339 790 1,016 Takaful Claim M/s Adamjee Insurance Company Limited
67,774 36,546 31,228 45,898
Other disposals
Vehicles 173,418 152,071 21,347 83,136
Electrical, office and

computer equipments 59,592 56,485 3,107 10,299
Furniture and Fixtures 3,471 3,189 282 597
Leasehold improvements 10,411 9,349 1,062 528
314,666 257,640 57,026 140,458

Note 2018 2017
Rupees in ‘000
13 INTANGIBLE ASSETS
Computer Software 13.1 552,130 479,712

Advance against computer software 72,404 32,778
624,534 512,490
13.1 At January 1,
Cost 1,368,316 1,108,443
Accumulated amortisation 888,604 692,165
Net book value 479,712 416,278
Year ended December 31,

Opening net book value 479,712 416,278
Additions - directly purchased 292,626 235,629
Amortisation charge (220,208) (170,156)

Other adjustments - (2,039)
Closing net book value 552,130 479,712

Cost 1,660,942 1,368,316
Accumulated amortisation 1,108,812 888,604
Rate of amortisation (percentage) 10-20 10-20
Useful life 5 - 10 years 5 - 10 years
13.1.1 Included in cost of intangible assets are fully amortised items still in use aggregating Rs 542 million (2017: Rs 392 million).
14 DEFERRED TAX ASSET / (LIABILITIES)

2018
At January 1, Recognised Recognised At
2018 in Profit & in OCI December
Loss 31, 2018
Rupees in ‘000
Taxable temporary differences due to:
Excess of accounting book values over tax written down values of owned assets (498,700) 86,782 - (411,918)
Surplus on revaluation of non-banking assets acquired in satisfaction of claims - - (11,928) (11,928)
(498,700) 86,782 (11,928) (423,846)
Deductible temporary differences due to:
Provision for diminution / impairment in value of investments 302,905 167,623 - 470,528
Deficit on revaluation of available for sale investments (397,910) - 434,542 36,632
Income not accrued due to non-culmination of financing 495,668 317,236 - 812,904
Provision against non-banking assets acquired in satisfaction of claims and other assets 89,855 (3,137) - 86,718
490,518 481,722 434,542 1,406,782
(8,182) 568,504 422,614 982,936
2017
Loss 31, 2017
Rupees in ‘000
Surplus on revaluation of available for sale investments (1,251,679) - 853,769 (397,910)
(1,883,585) 133,206 853,769 (896,610)
Provision against non-banking assets acquired in satisfaction of claims and other assets 90,533 (678) - 89,855
520,676 367,752 - 888,428
(1,362,909) 500,958 853,769 (8,182)

Note 2018 2017

Rupees in ‘000
15 OTHER ASSETS
Profit / return accrued in local currency - net of provisions 13,851,168 10,686,348

Profit / return accrued in foreign currencies - net of provisions 63,744 35,639
Advances, deposits, advance rent and other prepayments 15.1 2,269,774 1,563,448
Non-banking assets acquired in satisfaction of claims 15.3 240,607 246,201
Unrealised gain on forward foreign exchange contracts - net 15.2 1,335,392 1,063,795
Acceptances 10,634,901 7,144,255
Dividends receivable 262 21,836
Stamps 13,037 10,815
Security deposits 119,510 101,510
Others 288,419 206,488
28,816,814 21,080,335
Provision against other assets 15.4.1 (71,302) (96,234)
Other Assets (Net of Provision) 28,745,512 20,984,101
Surplus on revaluation of non-banking assets acquired in
satisfaction of claims 23 34,080 -
Other Assets - total 28,779,592 20,984,101
15.1 This includes prepaid rent and prepaid takaful aggregating Rs 561 million (2017: Rs 473 million) and Rs 959 million
(2017: Rs 679 million) respectively which are being amortised over a period of one year.
15.2 This is net off loss on forward foreign exchange contracts of Rs 1,132 million (2017: Rs 1,529 million).
2018 2017
Rupees in ‘000
15.3 Market value of Non-banking assets acquired in satisfaction of claims 264,688 224,118
Market value of the non-banking assets acquired in satisfaction of claims has been carried out by an independent valuer, M/s
Joseph Lobo (Private) Limited based on prevailing market values determined through independent market inquiries from local
active realtors and adjusted for the physical condition of the property as more detailed in note 40.4.
15.3.1 Non-banking assets acquired in satisfaction of claims 2018 2017

Rupees in ‘000
Opening Balance 246,201 284,255

Depreciation (5,594) (7,302)
Transfer to fixed assets - (30,752)
Closing Balance 240,607 246,201
15.4 Provision held against other assets 2018 2017

Rupees in ‘000
Non-banking assets acquired in satisfaction of claims 10,000 22,084

Acceptances 35,451 35,451
Others 25,851 38,699
71,302 96,234

15.4.1 Provision against other assets Note 2018 2017

Rupees in ‘000

Charge for the year 2,417 25,165
Reversals during the year (27,349) (48,725)
Amount adjusted / written off - (11,251)
16 BILLS PAYABLE
In Pakistan 23,750,543 17,175,035

Outside Pakistan - -
23,750,543 17,175,035
17 DUE TO FINANCIAL INSTITUTIONS
In Pakistan 36,407,811 36,813,295

36,407,811 36,813,295
17.1 Details of due to financial institutions secured / unsecured
Secured
Musharakah from the State Bank of Pakistan
under Islamic Export Refinance Scheme 17.1.1 22,737,094 21,141,464
Investment from the State Bank of Pakistan
under Islamic Long Term Financing Facility 17.1.2 433,990 -
Other financial institution 17.1.3 627,075 329,008
Unsecured
Overdrawn nostro accounts 409,652 492,823
Other Musharakah 17.1.4 12,200,000 14,850,000
36,407,811 36,813,295
17.1.1 These Musharakah are on a profit and loss sharing basis maturing between January 2019 to June 2019 and are secured
against demand promissory notes executed in favor of SBP. A limit of Rs 33,422 million (December 31, 2017: Rs 25,700
million) has been allocated to the Bank by SBP under Islamic Export Refinance Scheme.
17.1.2 These Investment are on Profit Loss sharing basis which has been invested in general pool of the Bank. A limit of Rs 11,720
million (2017: Nil) has been allocated to the Bank by SBP under Islamic Long Term Financing Facility.
17.1.3 These Musharakah are on Profit Loss sharing basis. A limit of USD 10 million has been allocated to the Bank under the
agreement with Karandaaz.
17.1.4 These Musharakah are on profit and loss sharing basis. The expected average return on these Musharakah is around
9.54% (2017: 5.95%) per annum. These balances are maturing in January 2019 (2017: January 2018).

2018 2017
17.2 Particulars of due to financial institutions with respect to currencies Rupees in ‘000

36,407,811 36,813,295
17.3 Particulars of due to financial institutions
Short - term 35,346,747 36,484,287

Long - term 1,061,064 329,008
36,407,811 36,813,295
18 DEPOSITS AND OTHER ACCOUNTS

2018 2017
In Local In Foreign Total In Local In Foreign Total
currency currencies currency currencies
Rupees in ‘000
Customers
- Current accounts - non-remunerative 267,855,629 15,590,028 283,445,657 217,203,530 12,821,821 230,025,351

- Savings deposits 255,706,358 23,494,221 279,200,579 240,454,616 17,966,537 258,421,153
- Fixed deposits 197,008,707 10,109,048 207,117,755 161,145,052 6,836,065 167,981,117
- Margin 5,335,289 41,896 5,377,185 5,501,348 12,002 5,513,350
725,905,983 49,235,193 775,141,176 624,304,546 37,636,425 661,940,971
Financial institutions
- Current accounts - non-remunerative 597,730 - 597,730 369,336 - 369,336

- Savings deposits 4,607,308 - 4,607,308 3,213,407 - 3,213,407
- Fixed deposits 5,130,730 - 5,130,730 1,657,151 - 1,657,151
10,335,768 - 10,335,768 5,239,894 - 5,239,894
736,241,751 49,235,193 785,476,944 629,544,440 37,636,425 667,180,865
2018 2017
Rupees in ‘000
18.1 Composition of deposits
- Individuals 521,789,397 461,565,965

- Government (Federal and Provincial) 14,958,796 8,321,634
- Public Sector Entities 15,385,523 15,984,632
- Banking Companies 67,656 241,743
- Non-Banking Financial Institutions 10,268,111 5,024,942
- Private Sector 223,007,461 176,041,949
785,476,944 667,180,865
18.2 Particulars of deposits and other accounts in Pakistan
In
- local currency
Mudaraba based deposits 466,196,269 410,860,146
Qard based deposits 270,045,482 218,684,294
736,241,751 629,544,440
- foreign currencies
49,235,193 37,636,425
785,476,944 667,180,865
18.3 Eligible deposits covered under deposit protection scheme (including call deposit receipts disclosed under bills payable) amounted
to Rs 628,119 million (2017: Rs 542,230 million).

Note 2018 2017

Rupees in ‘000
19 SUB-ORDINATED SUKUK
Additional Tier I Sukuk 19.1 7,000,000 -

Tier II Sukuk 19.2 7,000,000 7,000,000
14,000,000 7,000,000
19.1 In August 2018, the Bank issued regulatory Shariah compliant unsecured, subordinated 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 Addtional Tier I sukuk is as follows:
Credit Rating AA- (Double A minus) by JCR-VIS Credit Rating Company Limited.
Issue Date August 01, 2018
Tenor Perpetual
Profit payment frequency Monthly in arrears
Redemption Perpetual
Expected Periodic Profit Amount The Modaraba Profit is computed under General Pool on the basis of profit sharing ratio
(Mudaraba Profit Amount) and monthly weightages announced by the Bank under the SBP guidelines of pool
management. Last announced profit rate on the Sukuk is 11.10% per annum.
Call Option The Bank may call Additional Tier I Sukuk with prior approval of SBP on or after five years
from the date of issue.
Loss Absorbency The Additional Tier I Sukuk, at the option of the SBP, will be fully and permanently converted
into common shares 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.
Lock-in-Clause Profit and/or redemption amount can be held back in respect of the Additional Tier I Sukuk,
if such payment will result in a shortfall in the Bank’s minimum capital or capital adequacy
ratio requirement.
19.2 In September 2016, the Bank issued regulatory Shariah compliant unsecured, subordinated privately placed Tier II 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 Tier II sukuk is as follows:
Credit Rating AA (Double A) by JCR-VIS Credit Rating Company Limited.

Issue Date September 22, 2016
Tenor 10 years from the issue date.
Profit payment frequency Semi-annually in arrears
Redemption Bullet payment at the end of the tenth year.
Expected Periodic Profit Amount The Mudaraba Profit is computed under General Pool on the basis of profit sharing ratio and
(Mudaraba Profit Amount) monthly weightages announced by the Bank under the SBP guidelines of pool management.
Last announced profit rate on the Sukuk is 8.56% per annum.
Call Option The Bank may call Tier II Sukuk with prior approval of SBP on or after five years from the
date of issue.
Loss Absorbency The Tier II Sukuk, at the option of the SBP, will be fully and permanently converted into
common shares upon the occurrence of a point of non-viability trigger event as determined
Lock-in-Clause Profit and/or redemption amount can be held back in respect of the Tier II Sukuk, if such
payment will result in a shortfall in the Bank’s minimum capital or capital adequacy ratio
requirement.

Note 2018 2017

20 OTHER LIABILITIES
Rupees in ‘000
Return on deposits and other dues
- payable in local currency 20.1 3,388,288 2,268,390
- payable in foreign currencies 75,272 42,913
Unearned income 32,521 22,146
Accrued expenses 20.2 3,721,994 2,440,405
Current taxation (provision less payments) 2,981,896 1,733,294
Acceptances 10,634,901 7,144,255
Unclaimed dividends 17,030 6,761
Payable to defined benefit plan 37.3 & 37.15 624,077 715,883
Charity payable 20.4 942 139
Provision against off-balance sheet obligations 20.3 35,020 33,200
Security deposits against Ijarah 13,623,020 9,211,429
Payable on account of credit murabaha / ijarah 75,439 11,566
Balances under home remittances / cash management arrangements 539,999 203,905
Security deposits against lockers 100,532 85,147
Retention Money 60,688 50,688
Advance against future Diminishing Musharakah - 55,320
Witholding taxes payable 123,762 114,410
Workers Welfare Fund payable 20.5 1,287,912 924,911
Others 623,759 488,468
37,947,052 25,553,230
20.1 This includes Rs 121 million (2017: Rs 84 million) in respect of return accrued on borrowings from SBP under the Islamic
Export Refinance Scheme and Rs 2.9 million (2017: Nil) in respect of return accrued on borrowings from SBP under the Islamic
Long Term Financing Facility.
20.2 This includes Rs 2.9 million (2017: Rs 3.1 million) in respect of payable to Al Meezan Investment Management Limited
(Subsidiary).
Note 2018 2017

Rupees in ‘000
20.3 Provision against off-balance sheet obligations

Closing balance 20.3.1 35,020 33,200
20.3.1 This represents provision recognized against guarantees of non-performing customers.
Note 2018 2017

Rupees in ‘000
20.4 Reconciliation of charity payable
Balance as at January 1 139 1,509

Additions during the year 36,922 31,439
Less: Transferred to charity savings account
(included in deposits and other accounts) 20.4.1 (36,119) (32,809)
Balance as at December 31 942 139

20.4.1 Charity paid through saving account during the year is Rs 38.4 million (2017: Rs 30.9 million). Charity of Rs 100,000
or higher was paid to the following organisations:
2018 2017
Rupees in ‘000
Ihsan Trust - Related Party 28,000 25,000

Lahore Businessmen Association For Rehabilitation of the Disabled 1,000 1,000
Patients' Behbud Society for The Aga Khan University Hospital 1,000 1,000
The Indus Hospital 1,000 -
Pakistan Disabled Foundation 400 200
Burhani Medical Welfare Association 300 -
Garage School 300 -
Idara - Al Khair 300 -
Omair Sana Foundation 300 -
Pakistan Association of Blind 300 100
Helping Hands Foundation 250 -
Medical Aid Foundation (Rahat Kada) 250 -
Afzaal Memorial Thelesimia Foundation 200 -
Behbud Association Karachi 200 -
Bin Qutub Foundation Chakwal 200 -
Centre For Development of Social Services 200 -
Family Educational Services Foundation 200 350
Health and Nutrition Development Society 200 -
Khwendo Kor 200 -
Kiran Foundation 200 -
Muhammadi Blood Bank 200 -
Muslim Welfare Centre 200 200
Patients Aid Foundation - Jinnah Hospital 200 -
Rashid Memorial Welfare Organization 200 -
Sargodhian Spirit Trust 200 300
Eye Donor Organization 150 150
Patients Welfare Association 150 -
Al- Mustafa Trust Rawalpindi 100 -
Care Foundation 100 200
Child Aid Association 100 -
Frontier Foundation Welfare Hospital And Blood Transfusion Service 100 -
Health Education and Livelihood Promoters 100 200
Jamal Noor Hospital 100 -
Jinnah Foundation 100 -
Karigar Training Institute 100 100
Marie Adelaide Leprosy Centre 100 -
Markaz e Umeed 100 -
Mercy Pak 100 100
Nigahban Civil Hospital 100 150
Noor e Ali Trust (JS Academy of Deaf) 100 100
Pakistan Association of the deaf 100 200
Saylani Welfare Trust 100 -
SINA Health, Education & Welfare Trust 100 200
Health Oriented and Preventative Education (HOPE), Karachi 100 -
SOS Children Village Islamabad 100 -
SOS Children Village Karachi 100 100
Trust Jamiat Taleem Ul Quran 100 -
Women Islamic Lawyer's Forum 100 -
Binoria Welfare Trust, Karachi - 200
Burns Centre, Civil Hospital, Karachi - 100
Creek General Hospital Karachi - 200
Fatimid Foundation Peshawar Centre - 500
Infaq Memorial Trust - 100
National Institute of Cardiovascular Disease - 100
38,400 30,850

20.4.2 The balance in Charity's saving account is Rs 0.144 million (2017: Rs 2.259 million).
20.4.3 Charity was not paid to any organisation in which a director or his spouse had any interest at any time during the year.
20.5 The Bank has made full provision for Workers Welfare Fund (WWF) based on profit for the respective years (2008-2018). In
2016, the Supreme Court of Pakistan vide its order dated November 10, 2016 held that the amendments made in the law
introduced by the Federal Government for the levy of Workers Welfare Fund were not lawful. The Federal Board of Revenue
filed review petitions against this order which are currently pending. Legal advice obtained on the matter indicates that
consequent to filing of these review petitions the judgment may not be treated as conclusive. Accordingly, the Bank continues
to maintain the provision in respect of WWF.
21 SHARE CAPITAL
21.1 Authorised capital
2018 2017 2018 2017

(Number of Shares) Rupees in ‘000
2,338,380,000 2,000,000,000 Ordinary shares of Rs 10 each 23,383,800 20,000,000
2018 2017 2018 2017

Ordinary shares
516,517,908 516,517,908 Fully paid in cash 5,165,179 5,165,179
652,674,492 546,384,260 Issued as bonus shares 6,526,745 5,463,843
1,169,192,400 1,062,902,168 11,691,924 10,629,022
21.2 Shareholding held by associated companies are as follows:
2018 2017
Number of Percentage of Number of Percentage of
shares held Shareholding shares held Shareholding
Name of Shareholders
Noor Financial Investment Company Kuwait 446,432,362 38.18% 522,033,439 49.11%

Pakistan Kuwait Investment Company (Private) Limited 350,757,710 30.00% 318,870,646 30.00%
Islamic Development Bank 109,014,771 9.32% 99,104,338 9.32%
Meezan Islamic Fund 6,950,134 0.59% 2,840,077 0.27%
Al Meezan Mutual Fund 1,331,500 0.11% - -
Meezan Balanced Fund 889,350 0.08% 79,819 0.01%
Meezan Asset Allocation Fund 488,951 0.04% 6,410 0.00%
Meezan Dedicated Equity Fund 430,550 0.03% 510,000 0.05%
Note 2018 2017

22 RESERVES
Rupees in ‘000
Share Premium 2,406,571 2,406,571

Statutory reserve 22.1 9,570,365 7,777,925
Non Distributable Capital Reserve - Gain on Bargain Purchase 3,117,547 3,117,547
General reserve 66,766 66,766
15,161,249 13,368,809

22.1 Under section 21 of the Banking Companies Ordinance, 1962, an amount not less than 20% of the profit is to be transferred
to create a reserve fund till such time the reserve fund and the share premium account equal the amount of the paid up
capital.
23 (DEFICIT) / SURPLUS ON REVALUATION OF ASSETS - NET OF TAX Note 2018 2017

Rupees in ‘000
- Quoted shares / units of mutual fund 277,249 858,330
- Sukuk (381,916) 278,553
(104,667) 1,136,883
Non-banking assets acquired in satisfaction of claims 23.1 34,080 -
(70,587) 1,136,883
Less: Deferred tax asset / (liability) on
- Available for sale securities 36,632 (397,910)
- Non-banking assets acquired in satisfaction of claims (11,928) -
24,704 (397,910)
(45,883) 738,973
23.1 During the current year, market valuation of non-banking assets acquired in satisfaction of claims resulted in surplus of Rs 34.080
million (2017: Nil).
Note 2018 2017

24 CONTINGENCIES AND COMMITMENTS
Rupees in ‘000
Guarantees 24.1 31,724,600 16,912,669

Commitments 24.2 429,428,900 344,953,214
Other contingent liabilities 24.3 1,802,000 1,802,000
462,955,500 363,667,883
24.1 Guarantees:
Financial guarantees 7,561,791 369,446
Performance guarantees 12,533,871 8,472,268
Other guarantees 11,628,938 8,070,955
31,724,600 16,912,669
24.2 Commitments:
Documentary letters of credit 92,343,175 66,003,500
Commitments in respect of:

- forward foreign exchange contracts 24.2.1 118,865,324 124,558,666
Commitments for acquisition of:

- fixed assets 313,580 188,778
- intangible assets 87,475 13,515
Other commitments 24.2.2 217,819,346 154,188,755

429,428,900 344,953,214

24.2.1 Commitments in respect of forward foreign exchange contracts

Note 2018 2017
Rupees in ‘000
Purchase 74,321,214 75,272,094

Sale 44,544,110 49,286,572
118,865,324 124,558,666
24.2.2 Other Commitments
Commitments in respect of financing 24.2.2.1 217,819,346 154,188,755
24.2.2.1 The Bank makes commitments to extend credit (including to related parties) in the normal course of business but
these being revocable commitments do not attract any significant penalty or the expense if the facility is unilaterally
withdrawn, other than commitments in respect of syndicated / long term financings amounting to Rs 26,732 million
(2017: Rs 22,245 million).
24.3 Other contingencies
The Income Tax Department has amended the deemed assessment orders of the Bank for prior years including the tax year
2018. The additions / disallowances were mainly due to allocation of expenses relating to dividends and capital gain, allowability
of provision against loans and advances, 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 and non-adjustment of loss
pertaining to HSBC Bank Middle East – Pakistan Branches have also been raised. The Bank has obtained stay order from the
High Court of Sindh against the demands raised through the amended order for the tax year 2015. Both the Bank and the
department have filed appeals with the Appellate Authorities 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 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.
25 PROFIT / RETURN EARNED ON FINANCING, Note 2018 2017

INVESTMENTS AND PLACEMENTS Rupees in ‘000
On financing 25.1 30,205,819 21,495,999
On investments in
- Available for sale securities 5,330,663 4,753,140
- Held to maturity securities 1,565,200 1,565,200
On deposits / placements with financial institutions 11,522,776 8,612,593

48,624,458 36,426,932
25.1 The income on Ijarah under IFAS 2 is net off takaful of Rs 1,359 million (2017: Rs 914 million) recovered from customers.

26 PROFIT ON DEPOSITS AND OTHER DUES EXPENSED Note 2018 2017

Rupees in ‘000
Deposits and other accounts 26.1 18,191,908 13,797,935

Sub-ordinated Sukuk 849,039 461,030
Other Musharakahs / Modarabas / Murabaha 26.2 1,416,001 1,424,735
20,456,948 15,683,700
26.1 This includes conversion cost of Rs 638 million (2017: Rs 411 million) against foreign currency deposits.
26.2 This includes Rs 445 million (2017: Rs 316 million) paid / payable to SBP under Islamic Export Refinance Scheme and Rs 2.9 million
(2017: Nil) payable to SBP under the Islamic Long Term Financing Facility.
27 FEE AND COMMISSION INCOME Note 2018 2017

Rupees in ‘000
Trade related fees and commissions 1,821,762 1,268,083

Commission on guarantees 90,830 88,058
Branch banking customer fees 1,482,742 1,189,468
Credit processing related fees 122,941 85,142
Debit card related fees 1,127,899 809,492
Investment banking related fees 228,653 304,340
Cash management fees 44,625 25,675
Home remittance related fees 151,133 99,588
Others 186,585 296,125
5,257,170 4,165,971
28 GAIN ON SECURITIES - NET
Realised 28.1 8,308 824,926
28.1 Realised gain / (loss) on:

Listed Shares 23,921 385,058
Federal Government Securities (18,195) 306,211
Foreign Securities - (9,175)
Associates 2,582 142,832
8,308 824,926
29 OTHER INCOME
Gain on termination of
- Ijarah financing 198,793 144,205
- Diminishing Musharakah financing 21,388 19,767
Gain on sale of operating fixed assets 83,432 72,928
Rental income 5,989 7,441
Others 1,534 1,700
311,136 246,041

30 OPERATING EXPENSES Note 2018 2017

Rupees in ‘000
Total compensation expense 30.1 & 30.2 10,092,557 8,391,105
Property expense
Rent and taxes 2,010,229 1,749,798
Takaful expenses 13,149 12,450
Utilities cost (including electricity and diesel) 723,796 657,253
Security (including guards) 526,788 548,517
Repair and maintenance (including janitorial charges) 582,008 500,920
Depreciation 536,969 485,790
Others 36,920 34,461
4,429,859 3,989,189
Information technology expenses
Software maintenance 203,423 162,482
Hardware and related maintenance 173,151 132,531
Amortisation 220,208 170,156
Network charges 181,381 183,571
1,061,548 1,036,656
Other operating expenses
Non-executive Directors' fee 48,542 42,843
Shariah Board fees 700 800
Legal and professional charges 73,774 71,102
Outsourced services costs 30.3 12,011 18,200
Travelling and conveyance 94,803 86,468
NIFT and other clearing charges 148,890 141,943
Depreciation on vehicles, equipments, etc. 694,483 592,185
Training and Development 84,286 41,110
Communication (including courier) 315,338 252,658
Stationery and printing 494,155 408,722
Marketing, advertisement and publicity 313,152 215,541
Auditors' Remuneration 30.4 17,311 9,889
Donation 30.5 7,920 -
Fees, subscription and other charges 166,812 161,886
Local transportation and car running 391,980 318,693
Brokerage and bank charges 175,475 166,560
Office supplies 221,369 195,881
Takaful expense 119,357 122,806
Security charges - cash transportation 230,101 241,179
Entertainment 74,914 57,555
Others 20,799 17,006
3,706,172 3,163,027
19,290,136 16,579,977
30.1 The Bank has performance bonus policy for all employees including the President & Chief Executive Officer and Deputy Chief
Executive Officer. The aggregate amount determined for eligible employees in respect of the bonus relating to all Executives and
for the President & CEO and Deputy CEO of the Bank amounted to Rs 453 million (2017: Rs 338 million), Rs 105.76 million
(2017: Rs 83.14 million) and Rs 70.47 million (2017: Rs 55.40 million).
30.2 Remuneration amounted to Rs 14.2 million (2017: Rs 11.5 million) paid to Resident Shariah Board Member.
30.3 Total cost for the year relating to outsourced activities is Rs 1,573 million (2017: Rs 1,397 million) entirely relating to companies
incorporated in Pakistan and mainly on account of security guards, janitorial staff and courier services. This also includes portfolio
management fee to Al Meezan Investment Management Limited (subsidiary) amounting to Rs 12 million (2017: Rs 18.2 million)
as outsourced services costs disclosed separately under other operating expenses.

30.4 Auditors’ remuneration 2018 2017

Rupees in ‘000
Audit fee 3,900 3,600

Fee for interim review 800 690
Special certifications / review 9,671 3,751
14,371 8,041
Sindh sales tax on services 1,150 643
Out of pocket expenses 1,790 1,205
17,311 9,889
30.5 Donation
The Supreme Court of Pakistan and the Prime Minister of Pakistan

Diamer – Bhasha and Mohmand Dams Fund 7,920 -
None of the directors, sponsor shareholders, key management personnel and their spouses had any interest in the Donee.
31 OTHER CHARGES Note 2018 2017

Rupees in ‘000
Penalties imposed by the State Bank of Pakistan 16,419 10,824
32 PROVISIONS & WRITE OFFS - NET
Provision against non-performing islamic financing and related assets - net 11.10 894,866 720,189
Provision against diminution in the value of investments 10.3 307,401 586,732
Other reversals 32.1 (15,774) (42)
Bad debts written off directly 464 -
Recovery against written off financing 32.2 (18,906) (23,553)
1,168,051 1,283,326
32.1 This mainly represents takaful recoveries against operational losses incurred by the Bank in prior years.
32.2 This includes recoveries against financing written off by HSBC ME prior to its acquisition by the Bank.
Note 2018 2017

33 TAXATION
Rupees in ‘000
Current
- for the year 6,398,710 4,096,185
- for prior year 33.1 - 344,016
6,398,710 4,440,201
Deferred
- for the year (568,504) (500,958)
5,830,206 3,939,243
33.1 The Finance Act, 2018 has revised the applicability of super tax brought into effect through Finance Act, 2015 for rehabilitation
of temporary displaced persons for tax years 2019, 2020 and 2021 at the rate of 4%, 3% and 2% respectively on the taxable
income for respective years. Accordingly the bank has recognized super tax charge of Rs 660.333 million in the current year
which is determined at the applicable tax rate of 4 percent on taxable income for the year.
The Finance Supplementary (Second Amendment) Bill, 2019 proposed levy of super tax on taxable income for tax year 2018 (accounting
year 2017) retrospectively at the rate of 4% upto tax year 2021. The proposed amendments were not enacted as at 31 December
2018 and therefore, the Bank has not made super tax provision amounting to Rs 470.030 million for tax year 2018 (accounting
year 2017) in these financial statements.

33.2 Relationship between tax expense and accounting profit Note 2018 2017
Rupees in ‘000

Effects of:
- Tax calculated at the applicable rate of 35% 5,177,342 3,588,204
- Super tax for the accounting year 2018 (tax year 2019) 660,333 -
- Prior year - 344,016
- Permanent differences 3,494 5,326
- Others (10,963) 1,697
Tax charge for the year 5,830,206 3,939,243
2018 2017
34 BASIC AND DILUTED EARNINGS PER SHARE
Rupees in ‘000
Profit for the year 8,962,200 6,312,767
(Number)
Weighted average number of ordinary shares 1,169,192,400 1,135,477,682
(Rupees)
Restated
Basic earnings per share 34.1 7.67 5.56
34.1 The Bank has issued bonus shares during the year and accordingly the earnings per share for the comparative year has been restated.
Note 2018 2017

Rupees in ‘000
35 CASH AND CASH EQUIVALENTS
Cash and balances with treasury banks 7 65,022,041 64,556,170

Balances with other banks 8 8,255,187 4,895,816
73,277,228 69,451,986
2018 2017
36 STAFF STRENGTH Number of Staff
Permanent 7,545 6,895

Contractual basis 1,050 1,257
Bank's own staff strength at the end of the year 8,595 8,152
Outsourced 36.1 1,474 1,399
Total Staff Strength 10,069 9,551
36.1 This excludes outsourced security guards and janitorial staff.
37 DEFINED BENEFIT PLAN
37.1 General description
The activities of the gratuity scheme are governed by Meezan Bank Limited Staff Gratuity Fund established in 2000 under the provisions
of a trust deed. Plan assets held in trust are governed by the Trust Deed as is the nature of the relationship between the Bank and the
trustees and their composition. Responsibility for governance of the plan including the investment decisions lies with the Trustees. The
Board of Trustees comprise of representatives of the Bank and scheme participants in accordance with the Fund's trust deed.
37.2 Employees under the gratuity scheme 2018 2017

(Number)
Employees eligible under the gratuity scheme 7,464 6,848

2018 2017
37.3 Reconciliation of amount payable to defined benefit plan Rupees in ‘000
Present value of defined benefit obligations 1,386,260 1,297,029
Fair value of plan assets (1,063,037) (855,904)
323,223 441,125
37.4 Plan assets consist of the following:
2018 2017
Rupees in '000 % Rupees in '000 %
Meezan Aamdan Certificates 918,936 86% 606,937 71%

Al Meezan Mutual Fund 56,293 5% 63,882 8%
Meezan Asset Allocation Plan 59,694 6% 164,157 19%
Fatima Fertilizer Company Limited - Sukuk 8,829 1% 11,772 1%
Savings account with Meezan Bank Limited 19,285 2% 9,156 1%
1,063,037 100% 855,904 100%
37.5 The movement in the defined benefit obligation over the year is as follows:
2018
Present value Fair value Total
of obligation of plan assets
Rupees in ‘000
At January 1 1,297,029 (855,904) 441,125

Current service cost 291,330 - 291,330
Return expense / (income) 115,726 (96,168) 19,558
1,704,085 (952,072) 752,013
Remeasurements:
- Return on plan assets, excluding amounts
included in interest expense - 201,822 201,822
- Experience gains (189,487) - (189,487)
(189,487) 201,822 12,335
1,514,598 (750,250) 764,348
Contribution - (441,125) (441,125)
Benefit payments (128,338) 128,338 -
At December 31 1,386,260 (1,063,037) 323,223
2017
Rupees in ‘000
At January 1 968,320 (844,964) 123,356
1,289,714 (922,960) 366,754
Remeasurements:
included in return expense - 110,363 110,363
- Experience losses 87,364 - 87,364
87,364 110,363 197,727
1,377,078 (812,597) 564,481
Contribution - (123,356) (123,356)
At December 31 1,297,029 (855,904) 441,125

37.6 Charge for defined benefit plan (in respect of the gratuity scheme) 2018 2017
Rupees in ‘000
37.6.1 Cost recognised in profit and loss

Current service cost 291,330 237,847
Net return cost 19,558 5,551
310,888 243,398
37.6.2 Re-measurements recognised in OCI during the year

Loss / (gain) on obligation - Experience adjustment (189,487) 87,364
Return on plan assets over interest income 201,822 110,363
Total re-measurements recognised in OCI 12,335 197,727
Total expense recognized in Profit and Loss Account amounted to Rs 351.317 million (2017: Rs 279.078 million) of which
Rs 310.888 million (2017: Rs 243.398 million) pertains to approved Gratuity funded Scheme and Rs 40.429 million (2017:
Rs 35.680 million) pertains to End of Service unfunded Defined Benefit scheme. Total credit recognized in Other Comprehensive Income
amounted to Rs 1.998 million (2017: expense of Rs 189.878 million) of which charge of Rs 12.335 million (2017: charge of
Rs 197.727 million) pertains to approved defined Benefit Gratuity Scheme and reversal of Rs 14.333 million (2017: reversal
of Rs 7.849 million) pertains to End of Service unfunded Defined Benefit scheme.
37.7 The plan assets and defined benefit obligations (in respect of the gratuity scheme) are based in Pakistan.
37.8 Principal actuarial assumptions 2018 2017
Discount rate 13.75% p.a 9.50% p.a

Expected rate of increase in salaries 12.75% p.a 9.50% p.a
Expected rate of return on investments 13.75% p.a 9.50% p.a
Normal retirement age 60 years 60 years
37.9 Assumptions regarding future mortality are set based on actuarial advice in accordance with published statistics and experience in
Pakistan. The rates assumed are based on the adjusted SLIC 2001 - 2005 mortality tables with one year age set back.
37.10 The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:
Impact on defined benefit

obligation - Increase / (Decrease)
Change in Increase in Decrease in

assumption assumption assumption
Rupees in ‘000
Discount rate 1.0% (138,443) 163,504
Salary growth rate 1.0% 170,249 (146,144)
Increase by Decrease by
10% 10%
in assumption in assumption
Life expectancy / Withdrawal rate (139) 138
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. When calculating
the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined
benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when
calculating the gratuity liability recognised within the Statement of Financial Position.
37.11 The weighted average duration of the defined benefit obligation is 10.91 years.

37.12 Expected maturity analysis of undiscounted defined benefit obligation for the gratuity scheme is as follows:
At December 31, 2018 Less than a Between 1-2 Between 2-5 Over 5 years Total
year years years
Rupees in ‘000
Gratuity 113,881 80,057 267,155 11,640,066 12,101,159
37.13 Funding levels are monitored on an annual basis and are based on actuarial recommendations. Contribution for the next
year works out to Rs 280.170 million as per the actuarial valuation report of the Bank as of December 31, 2018.
37.14 Through its defined benefit gratuity plan, the Fund is exposed to a number of risks, the most significant of which are
detailed below:
Asset volatility The plan liabilities are calculated using a discount rate set with reference to corporate bond
yields; if plan assets underperform to the yield, this will create a deficit. The Fund believes
that due to long-term nature of the plan liabilities and the strength of the Bank's support, the
current investment strategy manages this risk adequately.
Changes in Sukuk A decrease in corporate Sukuk yields will increase plan liabilities, although this will be
(bond) yields partially offset by an increase in the value of the plans' sukuk holdings.
Inflation risk The majority of the plans' benefit obligations are linked to inflation, and higher inflation will
lead to higher liabilities. However, plan assets are variable rate instruments and are re-priced
at regular intervals to off set inflationary impacts.
Life expectancy / The majority of the plans' obligations are to provide benefits on severance with the Bank
Withdrawal rate on achieving retirement. Any change in life expectancy / withdrawal rate would impact
plan liabilities.
37.15 End of Service Unfunded Defined Benefit
The Bank also operates an End of Service unfunded defined benefit for the founding President and Chief Executive Officer.
The charge in respect of current service cost is recognised based on expected period of future service. The net charge for
the year of this benefit amounted to Rs 26.096 million. The charge of Rs 40.429 million has been recognized in the Profit and
Loss Account and the credit / reversal of Rs 14.333 million has been recognized in Other Comprehensive Income. The present
value of defined benefit obligation recognised in respect of this benefit amounts to Rs 300.854 million.
The principal actuarial assumptions comprise of discount rate of 13.75 percent and salary increase rate of 12.75 percent. The
retirement age used by the actuary is 66 years. The sensitivity of the defined benefit obligation due to a one percent change
in discount rate would be Rs 3.704 million (in case the discount rate is increased) and Rs 3.785 million (in case the discount
rate is decreased). The sensitivity of the defined benefit obligation due to change in life expectancy / withdrawal rates would
be lower by Rs 0.018 million (in case of ten percent increase in assumption) and higher by Rs 0.019 million (in case of ten
percent decrease in assumption). These sensitivities are calculated using the same methodology as explained in note 37.10.
37.16 The disclosure made in notes 37.1 to 37.15 are based on the information included in the actuarial valuation report of the Bank
as of December 31, 2018.
38 DEFINED CONTRIBUTION PLAN
The Bank also operates a recognized contributory provident fund for all permanent employees. Equal monthly contributions are made,
both by the Bank and the employees, to the fund at a rate of 10% of basic salary.
2018 2017
Rupees in ‘000
Contribution from the Bank 271,165 238,741

Contribution from the employees 271,165 238,741
542,330 477,482

39 COMPENSATION OF DIRECTORS AND EXECUTIVES
President and
Chief Executive Directors Executives
2018 2017 2018 2017 2018 2017
Rupees in ‘000
Fees* - - 48,542 42,843 - -
Managerial remuneration 45,280 42,717 30,171 28,463 816,622 681,782
Charge for gratuity fund - - 2,155 2,033 45,610 38,238
Contribution to defined contribution plan - - 1,293 2,440 56,000 47,091
House Rent 17,465 16,476 11,637 10,978 266,115 229,266
Utilities 3,881 3,661 2,586 2,440 59,138 50,949
Medical 4,184 7,758 2,763 2,751 59,138 50,949
Conveyance 1,891 1,706 1,071 1,088 - -
Others 2,057 1,536 2,901 1,508 - -
74,758 73,854 103,119 94,544 1,302,623 1,098,275
Number of persons 1 1 10 11 271 233
* This includes amount charged in these financial statements as fees to nine (2017: ten) non-executive directors.
39.1 Executives mean employees, other than Chief Executive and Directors, whose basic salary exceeds one million and two hundred
thousand rupees in a financial year.
39.2 The Chief Executive, the Deputy Chief Executive Officer (the Executive Director) and certain executives have been provided with
free use of the Bank's cars.
39.3 In addition to the above, all Executives, including the President & Chief Executive Officer and Deputy Chief Executive Officer of
the Bank are also entitled to bonus which is disclosed in note 30.1 to these financial statements. Further, End of Service Benefit
for the founding President and Chief Executive Officer was approved in 2015 and the related expense is disclosed in note 37.15
to these financial statements.
40 FAIR VALUE OF FINANCIAL INSTRUMENTS
40.1 The fair value of investments in listed securities, except investments categorised as ‘held to maturity’, investments in subsidiaries
and associates is based on quoted market prices. The value of unquoted equity investments is reduced, if required, on the basis
of break-up value of those investments based on the latest available audited financial statements.
Fair value of Islamic financing and related assets, other assets, other liabilities and fixed term deposits and other accounts
cannot be calculated with sufficient reliability due to absence of current and active market for such assets and liabilities and
reliable data regarding market rates for similar instruments. The provision for impairment of Islamic financing and related assets
has been calculated in accordance with the Bank’s accounting policy as stated in note 6.3.2.
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 assets and liabilities are short term in nature or in the case of financings and deposits are frequently
repriced.
2018 2017
40.2 Off-balance sheet financial instruments Book value Fair value Book value Fair value
Rupees in ‘000
Forward purchase of foreign exchange - net 72,163,082 74,597,244 72,953,918 75,547,124
Forward sale of foreign exchange - net 43,560,484 44,659,254 47,965,438 49,494,849

40.3 The table below analyses financial and non-financial assets carried at fair value, by valuation method. The different levels have
been defined as follows:
- Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).
- Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that
is, as prices) or indirectly (that is, derived from prices) (Level 2).
- Inputs for the assets or liabilities that are not based on observable market data (i.e. unobservable inputs e.g. estimated
future cash flows) (Level 3).
2018
Recurring Fair Value Measurements Level 1 Level 2 Level 3 Total
Rupees in ‘000
Investments - Net
Financial Assets
Ordinary shares - listed 4,347,184 - - 4,347,184
Units of open end fund 51,483 - - 51,483
GoP Sukuk - 18,715,223 - 18,715,223
PIA Sukuk - 1,500,000 - 1,500,000
Global Sukuk Bonds 7,455,428 - - 7,455,428
Forward purchase of foreign exchange contracts - 74,597,243 - 74,597,243

Forward sale of foreign exchange contracts - 44,659,254 - 44,659,254
2017
Rupees in ‘000
Investments - Net
Financial Assets
GoP Sukuk - 57,151,526 - 57,151,526
PIA Sukuk - 1,500,000 - 1,500,000

Investment in associates (listed - mutual funds) have market value of Rs 1,498 million which is being valued under level 2.
These are carried at cost in the financial statements in accordance with the Bank's accounting policy.
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 year.
(a) Financial instruments in level 1
Financial instruments included in level 1 comprise of investments in listed ordinary shares, units of open end mutual fund
and global sukuk bonds classified as available for sale.
(b) Financial instruments in level 2
Financial instruments included in level 2 comprise of GoP ijarah sukuk and PIA sukuk classified as available for sale.
(c) Financial instruments in level 3
Currently, no financial instruments are classified in level 3.

Valuation techniques used in determination of fair values within level 2
Item Valuation approach and input used
GoP Sukuk and The fair value of GoP Ijarah Sukuk and PIA Sukuk quoted are derived using PKISRV rates. The
PIA Sukuk 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.
Forward foreign The valuation has been determined by interpolating the mid rates announced by State Bank of
exchange contracts Pakistan.
40.4 Fair value of non-financial assets
Non-banking assets acquired in satisfaction of claims have been carried at revalued amounts determined by professional valuers
(level 3 measurement) based on their assessment of the market values as disclosed in note 15. The valuations are conducted by the
valuation experts appointed by the Bank which are also on the panel of State Bank of Pakistan. The valuation experts used a market
based approach to arrive at the fair value of the Bank’s properties. The market approach used prices and other relevant information
generated by market transactions involving identical or comparable or similar properties. These values are adjusted to reflect the
current condition of the properties. The effect of changes in the unobservable inputs used in the valuations cannot be determined
with certainty, accordingly a qualitative disclosure of sensitivity has not been presented in these financial statements.
Carrying Value
40.5 Financial assets not measured at fair value 2018 2017
Rupees in ‘000
Cash and balances with treasury banks 65,022,041 64,556,170

Balances with other banks 8,255,187 4,895,816
Due from financial institutions - net 184,814,600 147,229,221
Investments - net 91,673,549 50,953,998
Islamic financing and related assets - net 512,564,522 420,029,088
Other assets - net 26,293,396 19,259,871

41 SEGMENT ANALYSIS
41.1 Segment Details with respect to Business Activities.
2018
Corporate and Retail Trading and Others Inter-segment Total
Commercial banking banking sales Eliminations
Rupees in ‘000
Profit and Loss Account

External Revenue 28,610,386 5,880,628 19,411,444 2,184,503 - 56,086,961
Inter segment revenue - net - 39,985,198 - 92,553 (40,077,751) -
Total Income 28,610,386 45,865,826 19,411,444 2,277,056 (40,077,751) 56,086,961
Segment direct expenses 1,802,047 36,514,095 1,262,603 547,759 - 40,126,504
Inter segment expense allocation 23,370,533 - 16,707,218 - (40,077,751) -
Total expenses 25,172,580 36,514,095 17,969,821 547,759 (40,077,751) 40,126,504
Provisions and write offs - net (826,756) (22,847) (318,448) - - (1,168,051)
Profit before tax 2,611,050 9,328,884 1,123,175 1,729,297 - 14,792,406

Cash & Bank balance - 70,880,687 2,396,541 - - 73,277,228
Due from financial institutions - net - - 184,814,600 - - 184,814,600
Investments - net 21,076,097 - 102,666,770 - - 123,742,867
Net inter segment lending - 671,148,377 - 297,553 (671,445,930) -
Islamic financing and related assets - net 431,967,241 80,597,281 - - - 512,564,522
Others 16,888,683 20,233,304 6,394,201 - - 43,516,188
Total Assets 469,932,021 842,859,649 296,272,112 297,553 (671,445,930) 937,915,405
Due to financial institutions 23,171,084 627,074 12,609,653 - - 36,407,811

Deposits & other accounts - 785,476,944 - - - 785,476,944
Subordinated Sukuk 14,000,000 - - - - 14,000,000
Net inter segment borrowing 400,580,898 - 270,865,032 - (671,445,930) -
Others 11,971,613 49,371,553 56,876 297,553 - 61,697,595
Total liabilities 449,723,595 835,475,571 283,531,561 297,553 (671,445,930) 897,582,350
Equity 20,208,426 7,384,078 12,740,551 - - 40,333,055
Total Equity & liabilities 469,932,021 842,859,649 296,272,112 297,553 (671,445,930) 937,915,405
Contingencies & Commitments 298,374,997 45,715,180 118,865,323 - - 462,955,500

2017
Corporate and Retail Trading and Others Inter-segment Total
Commercial banking banking sales Eliminations
Rupees in ‘000

External Revenue 20,899,027 4,050,249 17,272,858 1,829,080 - 44,051,214
Inter segment revenue - net - 29,894,398 - 27,166 (29,921,564) -
Total Income 20,899,027 33,944,647 17,272,858 1,856,246 (29,921,564) 44,051,214
Segment direct expenses 1,212,545 29,332,238 1,423,765 547,330 - 32,515,878

Inter segment expense allocation 16,124,689 - 13,796,875 - (29,921,564) -
Total expenses 17,337,234 29,332,238 15,220,640 547,330 (29,921,564) 32,515,878
Provisions and write offs - net (579,295) (117,298) (586,733) - - (1,283,326)
Profit before tax 2,982,498 4,495,111 1,465,485 1,308,916 - 10,252,010

Cash & Bank balances - 68,255,547 1,196,439 - - 69,451,986
Due from financial institutions - net - - 147,229,221 - - 147,229,221
Investments - net 21,729,513 - 97,508,733 - - 119,238,246
Net inter segment lending - 561,652,682 - 505,247 (562,157,929) -
Islamic financing and related assets - net 357,549,748 62,479,340 - - - 420,029,088
Others 11,429,161 15,859,318 5,570,980 - - 32,859,459
Total Assets 390,708,422 708,246,887 251,505,373 505,247 (562,157,929) 788,808,000
Due to financial institutions 21,141,465 329,007 15,342,823 - - 36,813,295

Deposits & other accounts - 667,180,865 - - - 667,180,865
Subordinated Sukuk 7,000,000 - - - - 7,000,000
Net inter segment borrowing 337,179,536 - 224,978,393 - (562,157,929) -
Others 8,013,062 34,218,138 - 505,247 - 42,736,447
Total liabilities 373,334,063 701,728,010 240,321,216 505,247 (562,157,929) 753,730,607
Equity 17,374,359 6,518,877 11,184,157 - - 35,077,393
Total Equity & liabilities 390,708,422 708,246,887 251,505,373 505,247 (562,157,929) 788,808,000
Contingencies & Commitments 208,242,163 30,867,054 124,558,666 - - 363,667,883
42 TRUST ACTIVITIES
The Bank commonly act as trustee and in other fiduciary capacities that result in the holding or placing of assets on behalf of individuals,
trusts, retirement benefit plans and other institutions including on behalf of certain related parties. These are not assets of the Bank and,
therefore, are not included in the Statement of Financial Position. The following is the list of assets held under trust:
2018 2017 2018 2017

Category Type
No. of IPS account Face Value
Rupees in ‘000
Insurance Companies Government Ijarah Sukuks 5 5 216,500 1,981,000
Asset Management Companies Government Ijarah Sukuks 11 11 - -
Employee Funds / NGO's Government Ijarah Sukuks 15 13 68,000 28,000
Individuals Government Ijarah Sukuks 19 19 9,000 12,700
Others Government Ijarah Sukuks 8 4 12,500 40,000
Related parties - Associates Government Ijarah Sukuks 3 3 95,000 95,000
Related parties - Others Government Ijarah Sukuks 1 1 75,000 75,000
62 56 476,000 2,231,700

43 RELATED PARTY TRANSACTIONS
43.1 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 a subsidiary company, associated companies, retirement
benefit funds, directors, and key management personnel and their close family members.
43.2 The Banks enters into transacitons with related paties 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 to the
key management personnel is determined in accordance with the terms of their appointment.
43.3 Subsidiary company

- Al Meezan Investment Management Limited
43.4 Key management personnel

- President and Chief Executive Officer
- Deputy Chief Executive Officer
43.5 Details of transactions with related parties and balances with them (other than those disclosed in respective notes) as at the
year-end as are follows:
Total Subsidiary Associates Directors Key Management Other Related

Personnel Parties
2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017
Rupees in ‘000
Islamic financing and related assets
At January 1, 776,443 2,484,365 99,939 - 676,504 2,484,365 - - - - - -
Addition during the year 3,732,561 6,713,052 - 99,939 3,732,561 6,613,113 - - - - - -
Deletion during the year (4,071,476) (8,420,974) (99,939) - (3,971,537) (8,420,974) - - - - - -
At December 31 437,528 776,443 - 99,939 437,528 676,504 - - - - - -
Investments
At January 1, 1,957,811 3,022,967 63,050 63,050 1,894,761 2,959,917 - - - - - -
Addition during the year - 1,243,264 - - - 1,243,264 - - - - - -
Deletion during the year (1,060,000) (2,308,420) - - (1,060,000) (2,308,420) - - - - - -
At December 31 897,811 1,957,811 63,050 63,050 834,761 1,894,761 - - - - - -
Deposits
At December 31 5,255,327 4,389,308 32,351 7,497 1,125,645 1,248,619 107,304 78,613 523,483 350,554 3,466,544 2,704,025
Balances pertaining to parties that were related at the beginning of the year but ceased to be related during any part of the current year are not
reflected as part of the closing balance. However, new related parties have been added during the year. The same are accounted for through the
movement presented above.

Total Subsidiary Associates Directors Key Management Other Related
Personnel Parties
2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017
Rupees in ‘000
Other Assets
Profit receivable on financing / investments 12,820 11,044 - 816 12,820 10,228 - - - - - -
Fee and other Receivable 26,855 24,907 22,355 23,407 1,000 1,500 - - - - 3,500 -
Sub-ordinated Sukuk (Tier II) 618,000 - - - 618,000 - - - - - - -
Other Liabilities
Payable to defined benefit plan 624,077 715,883 - - - - - - 300,854 274,758 323,223 441,125
Accrued Expenses 2,921 3,135 2,921 3,135 - - - - - - - -
Contingencies and Commitments
Letters of credit (unfunded) 27,572 29,851 - - 27,572 29,851 - - - - - -
Letters of Guarantee (unfunded) 100 100 100 100 - - - - - - - -
Transactions, income and expenses
Income, Expenses & Transactions
Profit earned on financing / investments 49,035 153,513 2,378 816 46,657 152,697 - - - - - -
Fees and other income earned 161,328 269,517 97,868 115,366 63,460 154,151 - - - - - -
Dividend income earned 325,000 908,112 325,000 695,500 - 212,612 - - - - - -
Capital gain - net 2,582 145,245 - - 2,582 145,245 - - - - - -
Return on deposits / borrowing expensed 250,890 181,765 1,211 1,243 43,468 32,964 1,463 1,208 12,303 10,093 192,445 136,257
Charge for defined benefit plan 323,223 441,125 - - - - - - - - 323,223 441,125
Contribution to defined contribution plan 271,165 238,741 - - - - - - - - 271,165 238,741
Contribution to staff benevolent fund 20,000 20,000 - - - - - - - - 20,000 20,000
Fees expensed 12,011 18,165 12,011 18,165 - - - - - - - -
Charity Paid 28,000 25,000 - - - - - - - - 28,000 25,000
Remuneration to key management personnel:
- Salaries and benefits (excluding end of
service benefit) (notes 39 & 30.1) 305,565 264,095 - - - - - - 305,565 264,095 - -
- End of service benefit charge for the
founder president (note 37.15) 26,096 27,831 - - - - - - 26,096 27,831 - -
Fee to non-executive directors (note 39) 48,542 42,843 - - - - 48,542 42,843 - - - -
Proceeds from sale of fixed assets having
net book value of Rs 0.361 million 1,984 - - - - - - - 1,984 - - -
44 CAPITAL ASSESSMENT AND ADEQUACY BASEL SPECIFIC
The State Bank of Pakistan (SBP) has introduced new guidelines with respect to disclosure of capital adequacy related information
in the financial statements of banks vide its communication dated November 5, 2014. These guidelines are based on the requirements
of Basel III which were introduced earlier by the SBP in August 2013 for implementation by banks in Pakistan. The SBP had specified
a transitional period for implementing new standards which came to its end on 31st December 2018. The disclosures below have been
prepared on the basis of these new guidelines. The comparative information is as per requirements which were applicable last year.
44.1 Capital structure
Under Basel III framework, the Bank's regulatory capital has been analysed into two tiers as follows:
- Tier 1 capital (going concern capital) which is sub divided into:
a) Common Equity Tier 1 (CET1), which includes fully paid up capital, balance in share premium account, reserve for bonus issue,
general reserves and un-appropriated profits (net of losses), etc after regulatory deductions for reciprocal crossholdings; deficit
on revaluation of available for sale investments; investment in own shares; and book value of intangibles.

b) Additional Tier 1 capital (AT1), which includes perpetual, unsecured, subordinated, non-cumulative and contingent
convertible Sukuk instrument issued by the Bank.
- Tier II capital, which includes sub-ordinated sukuk, general provisions for loan losses (upto a maximum of 1.25% of
credit risk weighted assets), reserves on revaluation of fixed assets and available for sale investments after deduction
of deficit on available for sale investments, indirect holding of own capital.
Banking operations are categorised in either the trading book or the banking book and risk weighted assets are determined
according to the specified requirements that seek to reflect the varying levels of risk attached to assets and off balance
sheet exposures.
The required capital adequacy ratio is achieved by the Bank through:
(a) Adequate level of paid up capital;

(b) Adequate risk profile of asset mix;
(c) Ensuring better recovery management; and
(d) Maintaining acceptable profit margins.
44.2 Capital adequacy ratio
The main objective of the capital management is to improve the financial position and strengthen the statement of financial
position of the Bank to support the growth in business, provide protection to depositors and enhance shareholders' value.
The Bank’s Board and the management is committed to maintaining a sound balance between depositors' liability and
shareholders' funds so that optimal capital / debt ratio is maintained. The optimal capital / debt ratio will provide reasonable
assurance to depositor's about safety and security of their funds and at the same time provide impetus to the management
to invest their depositors’ funds into profitable ventures without compromising the risk profile of the Bank. The capital
requirement of the Bank has been determined based on the projected growth plan to be achieved in the next 3 years in all
areas of business operations. Further, it also takes into account a road map for capital enhancement as directed by the
State Bank of Pakistan vide its various circulars issued from time to time.
The Bank prepares Annual Budget and Three Year Plan for purpose of the growth map and future direction. Bottom up
approach is used to prepare annual budget and detailed deliberations are held while preparing Three Year Plan. The growth
prospects takes into consideration prevailing economic and political factors in Pakistan and abroad.
In implementing current capital requirements the State Bank of Pakistan requires Banks to maintian minimum capital
adequacy ratio (CAR) of 11.90% as of December 31, 2018 whereas CAR stood at 14.55% at the year ended December 31,
2018.
The Bank calculates capital adequacy ratio for credit risk, market risk and operational risk based upon requirements under
Basel Accord as per guidelines issued by the State Bank of Pakistan from time to time in this regard.
Sensitivity and stress testing of the Bank under different risk factors namely yield rate, forced sale value of collateral,
non-performing financing and foreign exchange rate depicts that the Bank’s capital adequacy ratio is above the regulatory
requirements.
The Bank has taken into account credit risk, market risk and operational risk when planning its assets.

45 CAPITAL ADEQUACY, LEVERAGE RATIO & LIQUIDITY REQUIREMENTS

2018 2017
Rupees in ‘000
Minimum Capital Requirement

Paid-up capital (net of losses) 11,691,924 10,629,022
Capital Adequacy Ratio

Eligible Common Equity Tier 1 Capital 39,591,737 33,623,700
Eligible Additional Tier 1 Capital 7,000,000 -
Total Eligible Tier 1 Capital 46,591,737 33,623,700
Eligible Tier 2 Capital 9,916,173 9,979,092
Total Eligible Capital (Tier 1 + Tier 2) 56,507,910 43,602,792
Risk Weighted Assets

Credit Risk 323,126,915 281,668,113
Market Risk 11,628,453 11,492,896
Operational Risk 53,645,290 45,129,675
Total 388,400,658 338,290,684
Common Equity Tier 1 Capital Adequacy ratio 10.19% 9.94%

Tier 1 Capital Adequacy Ratio 12.00% 9.94%
Total Capital Adequacy Ratio 14.55% 12.89%
Leverage Ratio
Tier-1 Capital 46,591,737 33,623,700
Total Exposures 1,054,746,721 873,663,012
Leverage Ratio 4.42% 3.85%
Liquidity Coverage Ratio

Total High Quality Liquid Assets 120,562,308 115,848,701
Total Net Cash Outflow 94,253,108 93,838,280
Liquidity Coverage Ratio 147% 126%
Net Stable Funding Ratio

Total Available Stable Funding 716,111,391 613,661,480
Total Required Stable Funding 550,702,281 466,404,101
Net Stable Funding Ratio 130% 132%
45.1 Full disclosure on Capital Adequacy, Leverage Ratio & Liquidity Requirements prepared as per SBP instructions is
available at http:// www.meezanbank.com
46 RISK MANAGEMENT
The wide variety of the Bank’s business activities require the Bank to identify, assess, measure, aggregate and manage risks
effectively which are constantly evolving as the business activities expand in response to the Bank's strategy and growth. The Bank
manages the risk through a framework of risk management encompassing policies and procedures, organisational structures, risk
measurement and monitoring processes and techniques that are closely aligned with business activities of the Bank.
Risk management principles
- The Board of Directors (the Board) provides overall risk management supervision. The Board Risk Management Committee
regularly reviews the Bank’s risk profile.
- The Bank has set up objectives and policies to manage the risks that arise in connection with the Bank’s activities. The risk
management framework and policies of the Bank are guided by specific objectives to ensure that comprehensive and
adequate risk management tools and techniques are established to mitigate the salient risk elements in the operations of
the Bank.
- The establishment of the overall financial risk management objectives is consistent and in tandem with the strategy to create
and enhance shareholders’ value, whilst guided by a prudent risk management framework.
- The structure of risk management function is closely aligned with the organisational structure of the Bank.
- The risk management function is independent of the Bank’s operations.

Risk management organisation
The Board Risk Management Committee comprises of three non-executive directors and one executive director. One of
the non-executive directors of the Bank chairs the Risk Management Committee.
Specialized Committees comprising of Senior Management team members perform their functions in line with the strategic
direction set by the Board while ensuring that there is optimal balance between risk reward trade-off. The Committees
include:
Name of the sub-committee Chaired by
Credit Risk Management Committee (CRMC) President & CEO

Asset and Liability Management Committee (ALCO) President & CEO
Compliance and Operational Risk Management Committee (CORMC) President & CEO
CRMC is responsible to oversee credit risk activities on bank wide basis while ensuring compliance with regulatory
requirements & internal policies. Its responsibilities also include to provide support and guide front lines in managing their
businesses, perform finance portfolio review, establish financing standards and benchmarks, maintain adequate industry
diversification and decide upon provisioning. It is also required to delegate financing approving powers & prudential limits
on large financing exposures. Credit Committee, a sub-committee of CRMC is the highest level body for approval of financing
transactions.
ALCO is responsible for reviewing the Asset and Liability structure of the Bank, monitoring the liquidity situation and overall
changing market scenario. Market and Liquidity risks are examined based on stress testing exercises and gap analysis.
ALCO is also responsible for monitoring policy rate movements and taking necessary steps across various products to
ensure that the overall profitability of the Bank is maximized without compromising on risk appetite. ALCO also ensures that
the Banks’ overall operations are fully compliant with regulatory framework for the business as provided by the State Bank
of Pakistan.
The CORMC is responsible for overseeing compliance risk by reviewing the adequacy of controls in place to meet regulatory
requirements. The Committee is responsibe for promoting compliance culture in the Bank, facilitate in implementation of
Compliance Program and oversee Money Laundering and Financing Terrorism risk. In addition, the Committee also oversees
Operational Risk Framework by ensuring that policies and procedures are in place in all Key risk areas and by reviewing
Key Risk Indicators. The Committee also monitors level of compliance of major unresolved and recurring issues pointed
out in the Internal Audit, Shariah Audit and SBP Inspection Report.
The Bank’s risk management, compliance, internal audit and legal departments support the risk management function. The
role of the risk management department is to assess, measure, identify risks and established risk mitigants through a detailed
policy and monitoring framework. The compliance department ensures that all the directives and guidelines issued by the
SBP are being complied with in order to mitigate the compliance risk. The internal audit and BRR department reviews the
compliance of internal control procedures with internal and regulatory standards.
46.1 Credit Risk
Credit risk arises from the potential that an obligor is either unwilling to perform on an obligation or its ability to perform such
obligations is impaired resulting in economic loss to the Bank. This credit risk arises mainly from both direct financing
activities as well as contingent liabilities.
Credit risk management and structure
The Bank manages credit risk by effective credit appraisal mechanism, approving and reviewing authorities, limit structures,
internal credit risk rating system, collateral management and post disbursement monitoring so as to ensure prudent financing
activities and sound financing portfolio under the umbrella of a comprehensive Credit Policy approved by the Board of
Directors. A comprehensive financing procedural manual approved by the senior management is also in place. The Bank
also ensures diversification of its portfolio into different business segments, products and sectors. Further, to avoid risk
concentration; counterparty limits, counterparty group limits and industry concentration limits are also established, monitored and
assessed in the light of changing counterparty and market conditions.
Watchlist procedure is also functioning which identifies financing with early warning indicators in respect of clients having
the potential to become non performing. The risk management function also monitors the non-performing financing portfolio
of the Bank and reports all significant matters to the Board Risk Management Committee.
The Bank takes into account the risk mitigating effect of the eligible collaterals for the calculation of capital requirement for
credit risk. Use of Credit Risk Mitigation (CRM) resulted in the total credit risk weighted amount of Rs 323,126.915 million
(2017: Rs 281,668.113 million).
Thus, use of CRM resulted in capital adequacy ratio of the Bank of 14.55%.

46.1.1 Segmental information
46.1.1.1 Due from financial institutions
Credit risk by public / private sector
Non-performing
Gross amount due from
amount due from Provision held
financial institutions
financial institution
2018 2017 2018 2017 2018 2017
Rupees in ‘000
Public/ Government 75,782,901 66,505,849 - - - -

Private 109,073,265 80,764,938 41,566 41,566 41,566 41,566
184,856,166 147,270,787 41,566 41,566 41,566 41,566
46.1.1.2 Investment in debt securities
Credit risk by industry sector
Non-performing
Gross investments Provision held
investments
2018 2017 2018 2017 2018 2017
Rupees in ‘000
Textile 116,987 122,619 116,987 122,619 116,987 122,619

Cement 500,000 - - - - -
Chemical and Pharmaceuticals 228,648 409,063 53,648 59,063 53,648 59,063
Construction 400,000 - - - - -
Automobile and transportation equipment 697,495 1,107,334 - - - -
Power (electricity), oil, gas and water 16,874,050 17,490,545 - - - -
Federal Government Securities 89,420,405 84,895,331 - - - -
Foreign Government Securities 4,788,337 3,376,124 - - - -
Transport, Storage and Communication 2,433,333 3,366,667 - - - -
Financial 2,773,756 1,072,173 - - - -
118,233,011 111,839,856 170,635 181,682 170,635 181,682
Non-performing
investments
2018 2017 2018 2017 2018 2017
Rupees in ‘000
Public / Government 110,137,212 104,051,992 - - - -

Private 8,095,799 7,787,864 170,635 181,682 170,635 181,682
118,233,011 111,839,856 170,635 181,682 170,635 181,682

46.1.1.3 Islamic financing and related assets

Non-performing
Gross amount Provision held
amount
2018 2017 2018 2017 2018 2017
Rupees in ‘000
Agriculture, Food, Forestry and Fishing 100,863,987 99,347,493 337,334 115,741 337,334 115,741
Textile 80,313,835 73,154,016 4,403,537 4,381,126 4,339,569 4,295,238
Chemical and Pharmaceuticals 35,419,207 25,785,330 73,863 74,674 66,613 67,200
Cement 13,143,707 7,989,820 2,596 2,596 2,596 2,596
Sugar 9,822,896 7,677,505 108,718 108,718 108,718 108,718
Footwear and Leather garments 1,461,258 1,563,463 230,006 215,346 230,006 189,571
Automobile and transportation equipment 13,157,986 6,069,674 631,912 633,665 628,164 633,665
Electronics and electrical appliances 7,080,952 4,905,864 57,416 84,716 57,416 84,716
Construction 16,756,289 12,566,562 36,443 72,733 36,443 72,733
Power (electricity), oil, gas and water 107,787,451 82,591,525 61,571 61,571 61,571 61,571
Wholesale and Retail Trade 26,093,978 22,878,395 162,006 150,387 158,631 148,522
Exports/Imports 10,670,601 6,698,794 141,889 148,550 141,889 141,889
Paper, board and packaging 7,781,634 8,770,697 99,905 99,905 97,890 97,890
Transport, Storage and Communication 29,244,784 21,823,823 186,773 22,896 153,325 17,626
Financial 2,072,494 1,800,760 - - - -
Insurance 215,174 169,317 - - - -
Services 5,195,566 3,743,898 35,174 36,069 31,015 34,762
Individuals 52,091,347 38,579,854 336,155 292,416 242,726 252,629
Others 3,090,617 2,716,740 79,944 105,020 77,624 101,664
522,263,763 428,833,530 6,985,242 6,606,129 6,771,530 6,426,731
Non-performing
amount
2018 2017 2018 2017 2018 2017
Rupees in ‘000

Private 386,406,929 293,882,200 6,985,242 6,606,129 6,771,530 6,426,731
522,263,763 428,833,530 6,985,242 6,606,129 6,771,530 6,426,731

46.1.1.4 Contingencies and Commitments

2018 2017
Rupees in ‘000
Agriculture, Food, Forestry and Fishing 53,606,564 38,756,703

Textile 87,852,650 73,344,197
Chemical and Pharmaceuticals 33,391,962 14,653,168
Cement 7,360,211 9,754,650
Sugar 18,221,345 2,592,136
Footwear and Leather garments 1,923,709 1,526,181
Automobile and transportation equipment 10,106,979 7,993,863
Electronics and electrical appliances 10,741,174 2,948,147
Construction 20,621,063 9,040,615
Power (electricity), oil, gas and water 40,711,594 42,879,848
Wholesale and Retail Trade 9,470,597 10,563,245
Exports/Imports 4,873,264 6,259,977
Paper, board and packaging 6,474,923 4,524,567
Transport, Storage and Communication 3,911,071 17,175,204
Financial 114,660,376 88,762,266
Insurance - 55,716
Services 7,452,398 5,722,847
Individuals 5,376,859 14,160,774
Others 26,198,761 12,953,779
462,955,500 363,667,883

Public/ Government 35,103,690 19,646,280
Private 427,851,810 344,021,603
462,955,500 363,667,883
46.1.1.5 Concentration of Top 10 exposures
Top 10 exposures on the basis of total (funded and non-funded expsoures) aggregated to Rs 180,712 million (2017:
Rs 138,724 million) are as following:
2018 2017
Rupees in ‘000
Funded Exposure 145,056,016 123,155,434

Non Funded Exposure 35,655,566 15,568,755
Total Exposure 180,711,582 138,724,189
The sanctioned limits against these top 10 expsoures aggregated to Rs 205,451 million (2017: Rs 151,285 million). None
of the exposure against these top 10 customers is in classified stage.

46 .1.1.6 Islamic Financing and related assets - Province/Region-wise Disbursement & Utilization
2018
Disbursements Utilization
Rupees in ‘000
Province / Region Punjab Sindh KPK including AJK including

Balochistan Islamabad
FATA Gilgit-Baltistan
Punjab 299,569,251 299,569,251 - - - - -
Sindh 297,780,172 28,501,991 252,632,490 4,084,133 11,487,367 1,073,801 390
KPK including FATA 2,476,320 - - 2,476,320 - - -
Balochistan 347,823 - - - 347,823 - -
Islamabad 111,318,054 - - - - 111,318,054 -
AJK including
Gilgit-Baltistan 747,443 - - - - - 747,443
Total 712,239,063 328,071,242 252,632,490 6,560,453 11,835,190 112,391,855 747,833
2017
Rupees in ‘000
Punjab 388,275,010 388,275,010 - - - - -
Sindh 192,484,786 4,089,940 184,682,144 3,033,842 665,336 13,460 64
Balochistan 21,245 - - - 21,245 - -
Islamabad 25,360,086 - - - - 25,360,086 -
AJK including
Total 608,619,038 392,364,950 184,682,144 5,313,835 686,581 25,373,546 197,982
46.1.2 Credit Risk - General Disclosures
The Bank has adopted Standardised Approach of Basel Accord for calculation of capital charge against credit risk. Therefore,
risk weights for the credit risk related assets (on-balance sheet and off-balance sheet - market and non market related
exposures) are assigned on basis of standardised approach.
The Bank is committed to further strengthen its risk management framework which will enable the Bank to move ahead for
adopting Foundation Internal Ratings Based (IRB) approach of Basel II. Meanwhile, none of the Bank's assets class is
subject to the Foundation IRB or advanced IRB approaches.
46.1.2.1 Credit Risk: Disclosures for portfolio subject to the Standardised Approach
Under standardised approach the capital requirement is based on the credit rating assigned to the
counterparties by the External Credit Assessment Institutions (ECAIs) duly recognised by the SBP for capital
adequacy purposes. In this connection, the Bank utilises the credit ratings assigned by ECAIs and has
recognised agencies such as PACRA (Pakistan Credit Rating Agency) and JCR-VIS (Japan Credit Rating
Company - Vital Information System) which are also recognised by the SBP.
In case of foreign currency exposures against banks, ratings assigned by S&P, Fitch and Moody’s have been
applied. In case of exposure against banks, some banks have multiple ratings but those ratings do not result
in mapping with different risk weights.
Types of Exposure and ECAI’s used

2018
Standard &
Exposures JCR-VIS PACRA Fitch Moody
Poors (S&P)
Corporate √ √ √ √ √
Banks √ √ √ √ √
Public Sector Entities √ √ - - -

Use of ECAI Ratings
The Bank prefers solicited ratings over unsolicited ratings at all times, owing to the greater degree of accuracy (in general) associated
with solicited ratings. Unsolicited ratings may only be used in cases where a solicited rating is not available.
Mapping to SBP Rating Grades
The alignment of the Alphanumerical scale of each agency used with risk buckets is as per instructions laid down by SBP under
Basel III requirements.
46.1.2.2 Credit exposures subject to standardised approach

2018 2017
Amount Deduction Amount Deduction

Exposures Credit Risk Net amount Credit Risk Net amount
Outstanding Outstanding
Management Management
Rupees in ‘000
Banks
20% 194,020,323 143,659,107 50,361,216 151,721,981 120,907,869 30,814,112
50% 985,696 - 985,696 1,172,485 - 1,172,485
150% 83,328 - 83,328 48,780 - 48,780
Unrated 451,096 - 451,096 242,370 - 242,370
Sovereigns
0% 173,195,662 30,719,089 142,476,573 171,965,434 42,036,396 129,929,038
20% 276,755 - 276,755 1,716,728 - 1,716,728
50% 2,051,928 - 2,051,928 - - -
100% 151,309 - 151,309 111,499 - 111,499
Public Sector
entities
20% 32,314,645 13,052,617 19,262,028 25,954,044 8,191,220 17,762,824
Unrated (50%) 91,677,679 91,947,049 - 50,058,614 46,848,981 3,209,633
Corporate
20% 93,937,224 1,784,000 92,153,224 46,789,540 5,342,857 41,446,683
50% 55,606,232 2,329,667 53,276,565 33,480,160 2,046,356 31,433,804
100% 3,258,718 - 3,258,718 3,515,549 - 3,515,549
150% 1,019,233 - 1,019,233 - - -
Unrated 1 (100%) 92,818,644 4,798,516 88,020,128 91,598,854 2,485,245 89,113,609
Unrated 2 (125%) 57,987,218 2,624,655 55,362,563 95,068,947 36,561,120 58,507,827
Retails
75% 60,304,873 10,700,598 49,604,275 43,943,059 7,962,873 35,980,186
Total 860,140,563 301,615,298 558,794,635 717,388,044 272,382,917 445,005,127
46.1.2.3 Credit Risk: Disclosures with respect to Credit risk mitigation for Standardised approach and IRB
The Bank obtains capital relief for both its on-balance and off-balance sheet non-market related exposures by using simple
approach for credit risk mitigation (CRM). Off-balance sheet items under the simplified standardised approach are converted
into credit exposure equivalents through the use of credit conversion factors. Under the standardised approach the Bank has
taken advantage of the cash collaterals available with the Bank in the form of security deposits, cash margins, certificates of
islamic investment, monthly mudaraba certificate, saving accounts, guarantees, shares and Government securities.
Valuation and management of eligible collaterals for CRM is being done in accordance with the conditions laid down by the
State Bank of Pakistan. Eligible collaterals for CRM purposes do not expose the Bank to price risk as they are in the form of
cash/cash equivalent collaterals. Since eligible collaterals for CRM purposes are all in the form of cash/cash equivalent collaterals,
they generally do not pose risk to the Bank in terms of change in their valuation due to changes in the market condition.
The credit equivalent amount of an off-balance sheet market related foreign exchange contracts are determined by using the
current exposure (mark to market) method.
The Bank mainly takes the benefit of CRM against its claims on banks, corporate and retail portfolio. Under the standardized
approach for on-balance sheet exposures, Rs 195,540.443 million of exposure on banks is subject to the CRM of Rs 143,659.107
million. The corporate portfolio of Rs 304,627.269 million is subject to the CRM of Rs 11,536.838 million whereas claims on retail
portfolio of Rs 60,304.873 million is subject to CRM of Rs 10,700.598 million. The total benefit of Rs 301,663.669 million was
availed through CRM against total on-balance sheet exposure of Rs 923,009.573 million.

Under off-balance sheet, non-market related exposures; total benefit of Rs 17,640.547 million was availed
by the Bank through CRM against total off-balance sheet, non-market related exposure of Rs 385,997.643
million.
In the year 2018, total CRM benefit was Rs 319,304.216 million as against amount of Rs 281,144.077 million in
year 2017.
46.1.2.4 Credit concentration risk
Credit concentration risk arises mainly due to concentration of exposures under various categories viz.,
industry, geography, and single / group borrower obligor. Within credit portfolio, as a prudential measure
aimed at better risk management and avoidance of concentration of risks, the SBP has prescribed regulatory
limits on banks’ maximum exposure to single and group obligors. Within the SBP limits, the Bank has further
defined limits to avoid excessive concentration of portfolio.
46.2 Market risk
Market risk is the risk that the fair value or cash flows of a financial instrument will fluctuate due to changes in market
prices. Market risk reflects yield rate risk, currency risk and other price risks. Banks could be adversely affected by
movements in market rates or prices such as benchmark rates, deposit rates, foreign exchange rates, equity prices
and market conditions resulting in a loss to earnings and capital.
46.2.1 Equity position in the banking and trading book
The Bank classifies and values its investment portfolio in accordance with the directives of SBP as stated in
note 6.4 to these financial statements.
Trading book
Held for trading and available for sale securities with trading intent;
- They are marked to market daily;
- Any valuation difference is charged / credited to the profit and loss account in case of held for trading securities
and to surplus on revaluation of investments - net of tax under equity in case of available for sale securities.
Banking book
Assets outside trading book are part of the banking book. These may include assets classified as available for sale
and held to maturity investments.
46.2.2 Balance sheet split by trading and banking books
2018 2017
Banking Trading Banking Trading
Book Book Total Book Book Total
Rupees in ‘000
Cash and balances with
treasury banks 65,022,041 - 65,022,041 64,556,170 - 64,556,170
Balances with other banks 8,255,187 - 8,255,187 4,895,816 - 4,895,816
Due from financial institutions - net 184,814,600 - 184,814,600 147,229,221 - 147,229,221
Investments - net 118,509,439 5,233,428 123,742,867 112,766,467 6,471,779 119,238,246
Islamic financing and related
assets - net 512,564,522 - 512,564,522 420,029,088 - 420,029,088
Fixed assets 13,129,126 - 13,129,126 11,362,868 - 11,362,868
Intangible assets 624,534 - 624,534 512,490 - 512,490
Deferred tax asset 982,936 - 982,936 - - -
Other assets - net 28,779,592 - 28,779,592 20,984,101 - 20,984,101
932,681,977 5,233,428 937,915,405 782,336,221 6,471,779 788,808,000
The Bank uses a number of methods to monitor and control market risk exposures. One of the major tools used by the Bank to
monitor and limit market risk is Value at Risk (VaR). VaR is defined as the estimated loss that will arise on a position or a portfolio
over a particular (holding) period of time from an adverse market movement with a specific probability (confidence level). The
VaR model used by the Bank takes 99% confidence level and assumes a 1 to 10 days holding period whilst using the historical
simulation taking the data of the last three years. Daily VaR figures are circulated to the senior management and regular summaries
are reported in ALCO meetings.
The VaR reports are complemented by various other position and sensitivity limit structures, including stress, sensitivity, gap
and scenario analysis. The capital charge for market risk has been calculated by using Standardized Approach.

46.2.3 Foreign exchange risk
The foreign exchange risk is defined as the current or prospective risk to earnings and capital arising from adverse movements
in currency exchange rates. It refers to the impact of adverse movement in currency exchange rates on the value of open foreign
currency position. The objectives of the foreign exchange risk management is to minimise the adverse impact of foreign exchange
rate movements on the assets and liabilities mismatch (tenor and position) and maximise their earnings.
Whenever a commercial bank deals in foreign currency, it is exposed to risk of exchange rate. The Bank's assets and liabilities in
foreign currencies give rise to foreign exchange risk which has to be managed by the Bank; this risk is mitigated by using different
hedging techniques. Hedging is a way used by a bank to eliminate or minimize its risk exposures. Hedging can be done using
different ways like gap analysis, hedging (forwards), assigning limits in terms of amount, tenor, currency, product, countries,
counterparties, etc. The Bank limits its currency exposure to the extent of statutory net open position prescribed by the SBP except
in the cases where exemption is provided by the SBP. Foreign exchange open and mismatch positions are controlled through
close monitoring and are marked to market on a daily basis.
The analysis below represents the concentration of the Bank's foreign currency risk for on and off balance sheet
financial instruments: 2018
Assets Liabilities Off-balance Net foreign
sheet items currency
exposure
Rupees in ‘000
Pakistan Rupees 904,402,897 834,273,614 (29,777,104) 40,352,179
United States Dollars 30,482,064 55,168,119 24,656,496 (29,559)

Great Britain Pounds 677,715 3,995,066 3,330,962 13,611
Japanese Yen 34,146 45 (28,994) 5,107
Euro 1,715,095 3,876,456 2,119,253 (42,108)
Singapore Dollars 5,162 4 - 5,158
Australian Dollars 68,746 3,077 (101,482) (35,813)
Canadian Dollars 165,561 1,387 (163,246) 928
United Arab Emirates Dirham 62,398 - (30,244) 32,154
Swiss Francs 4,867 - (5,641) (774)
Saudi Riyal 18,551 - - 18,551
Swedish Korona 436 - - 436
Malaysian Ringgit 1,247 - - 1,247
Hongkong Dollar 993 34 - 959
Thailand Bhat 1,086 - - 1,086
Norwegian Krone 1,428 - - 1,428
Danish Krone 1,046 - - 1,046
Chinese Offshore Spot 2,019 - - 2,019
Chinese Yuan 269,948 264,548 - 5,400
Total foreign currency exposure 33,512,508 63,308,736 29,777,104 (19,124)
Total currency exposure 937,915,405 897,582,350 - 40,333,055
2017
exposure
Rupees in ‘000
Pakistan Rupees 757,030,568 695,990,571 (25,985,522) 35,054,475

Japanese Yen 260,286 186,571 (73,560) 155
Euro 1,717,815 3,623,082 1,921,584 16,317
Canadian Dollars 11,324 994 (11,006) (676)
Swiss Francs 212,289 208,614 (3,394) 281
Saudi Riyal 7,865 3,680 - 4,185
Swedish Korona 1,942 - - 1,942
Thailand Bhat 311 - - 311
Norwegian Krone 653 - - 653
Chinese Yuan 2,601 - - 2,601
Total foreign currency exposure 31,777,432 57,740,036 25,985,522 22,918

2018 2017
book book book book
Rupees in ‘000
Impact of 1% change in foreign exchange rates
- Profit and Loss Account - 992 - 490

- Other Comprehensive Income - - - -
46.2.4 Equity position risk
Equity position risk is defined as the risk to earnings or capital arising from adverse changes in value of equity portfolios of
Bank. The limits assigned to various individual scripts and total portfolio investments are fixed as per the guidelines
issued by the SBP. The Bank invests in only Shariah compliant equities as advised by the Resident Shariah Board
Member.
2018 2017
book book book book
Rupees in ‘000
Impact of 5% change in equity prices
- Profit and Loss Account - - - -

- Other Comprehensive Income - 141,284 - 147,098
46.2.5 Yield / profit rate risk
Yield risk occurs when there is a mismatch between positions, which are subject to profit rate alterations within a
particular time period. The Bank’s financing, placement and investment activities give rise to profit rate risk. The effect
of changes in profit rate is on the Bank’s income, and resultant impact is on the Bank’s net worth.
Profit rate risk is primarily managed by monitoring the rate sensitive gaps and by having the pre-approved limits
for repricing buckets. ALCO is the supervising body for adherence with these, complemented by the monitoring
of sensitivity of the Bank’s financial assets and liabilities to various scenarios.
The Bank estimates changes in the market value of equity due to changes in the yield rates on on-balance sheet
positions and their impact on capital adequacy ratio by conducting stress tests. It also assesses risk on earnings of
the Bank by various shocks.
2018 2017
book book book book
Rupees in ‘000
Impact of 1% change in discount rates
- Profit and Loss Account 854,073 - 668,067 -

- Other Comprehensive Income - - - -

46.2.6 Mismatch of yield rate sensitive assets and liabilities

2018
Exposed to yield risk
Effective Total Non-yield
yield Over 1 Over 3 Over 6 Over 1 Over 2 Over 3 Over 5 bearing
rate Upto 1 to 3 to 6 months to 1 to 2 to 3 to 5 to 10 Above financial
% month months months year years years years years 10 years instruments
Rupees in ‘000
On-balance sheet financial instruments
Assets
Cash and balances with treasury banks - 65,022,041 - - - - - - - - - 65,022,041
Balances with other banks 0.31 8,255,187 307,001 - - - - - - - - 7,948,186
Due from financial institutions 6.28 184,814,600 112,255,476 63,354,736 9,204,388 - - - - - - -
Investments 5.65 123,742,867 2,304,228 34,162,300 13,928,470 2,233,979 16,478,405 42,433,712 4,195,450 1,667,139 276,777 6,062,407
Islamic financing and related assets 7.16 512,564,522 179,575,584 92,482,198 69,817,791 11,757,760 6,274,079 9,389,053 15,009,074 2,074,916 - 126,184,067
Other assets - 26,293,396 - - - - - - - - - 26,293,396
920,692,613 294,442,289 189,999,234 92,950,649 13,991,739 22,752,484 51,822,765 19,204,524 3,742,055 276,777 231,510,097
Liabilities
Bills payable - 23,750,543 - - - - - - - - - 23,750,543
Due to financial institutions 4.01 36,407,811 35,371,084 - - - - - - - - 1,036,727
Deposits and other accounts 2.57 785,476,944 470,739,460 24,158,618 4,228,460 673,000 - - - - - 285,677,406
Sub-ordinated Sukuk 8.55 14,000,000 7,000,000 7,000,000 - - - - - - - -
Other liabilities - 24,256,491 - - - - - - - - - 24,256,491
883,891,789 513,110,544 31,158,618 4,228,460 673,000 - - - - - 334,721,167
On-balance sheet gap 36,800,824 (218,668,255) 158,840,616 88,722,189 13,318,739 22,752,484 51,822,765 19,204,524 3,742,055 276,777 (103,211,070)
Non financial assets
- Fixed assets 13,129,126

- Intangible assets 624,534
- Deferred tax asset 982,936
- Other assets 2,486,196
17,222,792
Non financial liabilities
- Other liabilities 13,690,561

- Deferred tax liabilities -
13,690,561
Total net assets 40,333,055
Off-balance sheet financial instruments
Forward purchase of foreign exchange

contracts 74,321,214 - - - - - - - - - 74,321,214
Forward sale of foreign exchange contracts 44,544,110 - - - - - - - - - 44,544,110
Off-balance sheet gap 29,777,104 - - - - - - - - - 29,777,104
Total yield risk rate sensitivity gap (218,668,255) 158,840,616 88,722,189 13,318,739 22,752,484 51,822,765 19,204,524 3,742,055 276,777 (73,433,966)
Cumulative yield risk rate sensitivity gap (218,668,255) (59,827,639) 28,894,550 42,213,289 64,965,773 116,788,538 135,993,062 139,735,117 140,011,894 66,577,928
2017
Effective Total Non-yield
yield Over 1 Over 3 Over 6 Over 1 Over 2 Over 3 Over 5 bearing
rate Upto 1 to 3 to 6 months to 1 to 2 to 3 to 5 to 10 Above financial
% month months months year years years years years 10 years instruments
Rupees in ‘000
Assets
Due from financial institutions 5.77 147,229,221 23,868,925 49,716,251 4,376,876 69,267,169 - - - - - -
Investments 5.39 119,238,246 6,926,424 6,988,489 48,745,895 - 30,698,206 15,126,496 1,124,924 2,221,122 - 7,406,690
Islamic financing and related assets 6.57 420,029,088 41,964,180 152,729,213 83,255,059 16,726,426 3,679,676 6,921,316 13,278,112 1,016,739 2,690,280 97,768,087
Other assets - 19,259,871 - - - - - - - - - 19,259,871
775,208,412 72,871,434 209,433,953 136,377,830 85,993,595 34,377,882 22,047,812 14,403,036 3,237,861 2,690,280 193,774,729
Liabilities
Bills payable - 17,175,035 - - - - - - - - - 17,175,035
Due to financial institutions 4.10 36,813,295 16,390,656 8,731,443 10,869,365 - - - - - - 821,831
Deposits and other accounts 2.30 667,180,865 435,662,748 - - - - - - - - 231,518,117
Sub-ordinated Sukuk 6.73 7,000,000 - 7,000,000 - - - - - - - -
744,400,330 452,053,404 15,731,443 10,869,365 - - - - - - 265,746,118
On-balance sheet gap 30,808,082 (379,181,970) 193,702,510 125,508,465 85,993,595 34,377,882 22,047,812 14,403,036 3,237,861 2,690,280 (71,971,389)

- Deferred tax asset -
13,599,588

- Deferred tax liabilities 8,182
9,330,277
Forward purchase of foreign exchange contracts 75,272,094 - - - - - - - - - 75,272,094

Forward sale of foreign exchange contracts 49,286,572 - - - - - - - - - 49,286,572
Total yield risk rate sensitivity gap (379,181,970) 193,702,510 125,508,465 85,993,595 34,377,882 22,047,812 14,403,036 3,237,861 2,690,280 (45,985,867)
Cumulative yield risk rate sensitivity gap (379,181,970) (185,479,460) (59,970,995) 26,022,600 60,400,482 82,448,294 96,851,330 100,089,191 102,779,471 56,793,604

The Bank takes on exposure to the effects of fluctuations in the prevailing levels of market profit rates on both its fair value
and cash flow risks.
Profit margins may increase as a result of such changes but may reduce to losses in the event that unexpected
movement arise.
46.3 Liquidity risk
Liquidity risk is the potential for loss to the Bank arising from either its inability to meet its obligations or to fund increases in
assets as they fall due without incurring an unacceptable cost.
The Bank’s Board of Directors sets the Bank’s policy for managing liquidity risk and entrusts accountability for supervision
of the implementation of this strategy to senior management. Senior management exercises its responsibilities for managing
market and liquidity risk through various committees including the Asset & Liability Management Committee (ALCO). Treasury
department manages the Bank’s liquidity position on a daily basis. The Bank’s main approach of managing the liquidity risk
is to make certain that it will always have adequate liquidity to meet its liabilities when they are due in normal and stressed
scenarios without incurring any untoward expenditure or risking reputational harm. ALCO monitors the maintenance of
liquidity ratios, depositor's concentration both in terms of the overall funding mix and avoidance of undue reliance on large
individual deposits. Regular liquidity stress testing is conducted under a variety of scenarios covering both normal and
more severe market conditions.

46.3.1 Maturities of assets and liabilities based on contractual maturities
2018
Total Upto Upto Upto Upto Upto Upto Over 3 to 6 Over 6 months Over 1 to Over 2 to Over 3 to Over 5 to Above 10
1 Day 7 Days 14 Days 1 month 2 months 3 months months to 1 Years 2 Years 3 years 5years 10 years years
Rupees in ‘000
Assets
Cash and balances with treasury banks 65,022,041 21,457,274 14,521,589 14,521,589 14,521,589 - - - - - - - - -
Balances with other banks 8,255,187 4,127,594 4,127,593 - - - - - - - - - - -
Due from financial institutions 184,814,600 - 19,205,698 53,240,917 39,808,861 43,516,511 19,838,225 9,204,388 - - - - - -
Investments 123,742,867 908,933 866,310 1,098,195 2,704,894 3,006,392 28,341,657 1,159,534 4,320,420 18,128,237 46,158,113 7,787,206 7,770,924 1,492,052
Islamic financing and related assets 512,564,522 143,920,374 7,842,269 4,767,501 24,972,247 28,834,181 24,703,611 71,147,499 21,102,254 20,258,507 21,295,023 60,784,958 66,268,129 16,667,969
Fixed assets 13,129,126 52,660 315,961 368,621 842,564 259,652 114,823 354,452 690,692 1,268,210 1,074,233 1,481,885 1,474,535 4,830,838
Intangible assets 624,534 681 4,084 4,764 10,889 30,007 30,006 59,249 87,317 149,775 121,708 115,795 10,259 -
Deferred tax assets 982,936 2,731 16,382 19,113 43,686 81,911 81,911 245,734 491,468 - - - - -
Other assets 28,779,592 60,057 946,746 937,110 2,623,662 4,463,237 2,408,045 5,532,564 9,342,768 691,615 681,097 1,088,581 - 4,110
937,915,405 170,530,304 47,846,632 74,957,810 85,528,392 80,191,891 75,518,278 87,703,420 36,034,919 40,496,344 69,330,174 71,258,425 75,523,847 22,994,969
Liabilities
Bills payable 23,750,543 8,075,185 5,225,119 5,225,119 5,225,120 - - - - - - - - -

Due to financial institutions 36,407,811 496,366 12,470,460 110,411 404,595 12,871,833 4,496,541 4,496,541 - - 627,074 107,610 326,380 -
Deposits and other accounts 785,476,944 573,359,841 32,577,225 17,472,856 29,575,318 29,421,284 20,294,930 20,572,571 27,133,880 5,496,273 6,421,521 11,814,447 11,336,798 -
Sub-ordinated Sukuk 14,000,000 - - - - - - - - - - - 7,000,000 7,000,000
Deferred Tax liabilities - - - - - - - - - - - - - -
Other liabilities 37,947,052 125,664 1,333,977 1,390,712 3,654,830 6,004,057 3,929,789 10,292,806 9,252,412 565,965 555,448 837,282 - 4,110
897,582,350 582,057,056 51,606,781 24,199,098 38,859,863 48,297,174 28,721,260 35,361,918 36,386,292 6,062,238 7,604,043 12,759,339 18,663,178 7,004,110
Net assets 40,333,055 (411,526,752) (3,760,149) 50,758,712 46,668,529 31,894,717 46,797,018 52,341,502 (351,373) 34,434,106 61,726,131 58,499,086 56,860,669 15,990,859
Share capital 11,691,924

Reserves 15,161,249
Unappropriated profit 13,525,765
Deficit on revaluation of assets (45,883)
40,333,055
ANNUAL REPORT 2018

223
224
2017
1 Day 7 Days 14 Days 1 month 2 months 3 months months to 1 Years 2 Years 3 years 5years 10 years years
Rupees in ‘000
MEEZAN BANK LIMITED

Assets
Cash and balances with treasury banks 64,556,170 64,556,170 - - - - - - - - - - - -

Balances with other banks 4,895,816 4,895,816 - - - - - - - - - - - -
Due from financial institutions 147,229,221 - - 20,270,922 3,598,003 34,396,258 15,319,993 4,376,876 69,267,169 - - - - -
Investments 119,238,246 2,263,943 915,382 1,155,444 2,691,013 671,197 1,371,396 1,924,537 41,948,167 36,297,159 19,376,073 2,885,636 4,203,029 3,535,270
Fixed assets 11,362,868 4,256 25,537 29,793 68,098 255,966 127,983 376,536 681,898 1,176,949 980,236 1,391,993 1,557,001 4,686,622
Deferred tax assets - - - - - - - - - - - - - -
Other assets 20,984,101 293,238 556,019 642,795 1,779,462 1,966,355 1,716,242 4,274,488 7,595,929 913,694 369,879 724,025 151,975 -
788,808,000 205,143,019 4,549,146 25,643,877 19,024,007 63,347,257 52,678,233 71,481,209 129,913,908 55,982,456 42,455,302 39,303,200 56,584,139 22,702,247
Liabilities
Bills payable 17,175,035 5,839,511 3,778,508 3,778,508 3,778,508 - - - - - - - - -

Due to financial institutions 36,813,295 1,343,378 14,361,832 747,745 430,524 5,795,156 2,936,287 10,869,365 - - 329,008 - - -
Sub-ordinated Sukuk 7,000,000 - - - - - - - - - - - 7,000,000 -
Deferred Tax liabilities 8,182 - - - - - - - 2,046 2,046 2,046 2,044 - -
Other liabilities 25,553,230 308,366 642,847 751,617 1,888,222 2,175,799 1,930,062 4,904,970 2,713,233 1,786,672 1,234,721 2,452,713 4,764,008 -
753,730,607 505,057,606 29,104,726 24,770,445 39,114,345 20,936,974 17,160,894 34,554,619 29,727,722 9,215,777 7,015,962 14,972,357 22,099,180 -
Net assets 35,077,393 (299,914,587) (24,555,580) 873,432 (20,090,338) 42,410,283 35,517,339 36,926,590 100,186,186 46,766,679 35,439,340 24,330,843 34,484,959 22,702,247

Reserves 13,368,809
Surplus on revaluation of assets 738,973
35,077,393
Current and Savings deposits have been classified under maturity upto one day as these do not have any contractual maturity.
46.3.2 Maturities of assets and liabilities based on expected maturities

2018
Over 1 Over 3 Over 6 Over 1 Over 2 Over 3 Over 5
Total Upto 1 to 3 to 6 Months to to 2 to 3 to 5 to 10 Above 10
Month Months Months 1 Year Years Years Years Years Years
Rupees in ‘000
Assets
Cash and balances with treasury banks 65,022,041 65,022,041 - - - - - - - -

Balances with other banks 8,255,187 8,255,187 - - - - - - - -
Due from financial institutions 184,814,600 112,255,476 63,354,736 9,204,388 - - - - - -
Investments 123,742,867 5,578,332 31,348,049 1,159,534 4,320,420 18,128,237 46,158,113 7,787,206 7,770,924 1,492,052
Islamic financing and related assets 512,564,522 81,961,222 87,847,815 103,062,351 54,418,548 20,258,507 21,295,023 60,784,958 66,268,129 16,667,969
Fixed assets 13,129,126 1,579,806 374,475 354,452 690,692 1,268,210 1,074,233 1,481,885 1,474,535 4,830,838
Intangible assets 624,534 20,418 60,013 59,249 87,317 149,775 121,708 115,795 10,259 -
Deferred tax assets 982,936 81,912 163,822 245,734 491,468 - - - - -
Other assets 28,779,592 4,567,575 6,871,282 5,532,564 9,342,768 691,615 681,097 1,088,581 - 4,110
937,915,405 279,321,969 190,020,192 119,618,272 69,351,213 40,496,344 69,330,174 71,258,425 75,523,847 22,994,969
Liabilities
Bills payable 23,750,543 23,750,543 - - - - - - - -
Due to financial institutions 36,407,811 13,481,832 17,368,374 4,496,541 - - 627,074 107,610 326,380 -
Deposits and other accounts 785,476,944 125,711,284 86,607,369 54,888,366 75,663,743 74,127,863 59,084,393 95,325,715 214,068,211 -
Sub-ordinated Sukuk 14,000,000 - - - - - - - 7,000,000 7,000,000
Deferred tax liabilities - - - - - - - - - -
Other liabilities 37,947,052 6,505,183 9,933,846 10,292,806 9,252,412 565,965 555,448 837,282 - 4,110
897,582,350 169,448,842 113,909,589 69,677,713 84,916,155 74,693,828 60,266,915 96,270,607 221,394,591 7,004,110
Net assets 40,333,055 109,873,127 76,110,603 49,940,559 (15,564,942) (34,197,484) 9,063,259 (25,012,182) (145,870,744) 15,990,859

Reserves 15,161,249
Deficit on revaluation of investments (45,883)
40,333,055
2017
Rupees in ‘000
Assets

Due from financial institutions 147,229,221 23,868,925 49,716,251 4,376,876 69,267,169 - - - - -
Investments 119,238,246 7,025,439 2,042,492 1,924,442 41,943,268 36,304,069 19,375,122 2,885,494 4,202,907 3,535,013
Fixed assets 11,362,868 125,114 371,914 363,315 1,215,560 1,124,772 930,601 1,253,799 1,423,707 4,554,086
Deferred tax assets - - - - - - - - - -
Other assets 20,984,101 3,271,513 3,682,756 4,274,803 7,595,929 913,219 369,879 724,027 151,975 -
788,808,000 163,606,635 149,186,455 102,325,352 157,163,286 55,936,688 42,316,721 39,252,781 56,450,650 22,569,432
Liabilities
Bills payable 17,175,035 17,175,035 - - - - - - - -
Due to financial institutions 36,813,295 16,637,068 8,977,855 10,869,364 - - 329,008 - - -
Deposits and other accounts 667,180,865 101,821,895 56,542,191 47,872,723 68,141,962 65,615,388 50,085,657 83,336,610 140,437,104 53,327,335
Sub-ordinated Sukuk 7,000,000 - - - - - - - 7,000,000 -
Deferred tax liabilities 8,182 - - - 2,046 2,046 2,046 2,044 - -
Other liabilities 25,553,230 3,591,052 4,105,861 4,904,970 2,713,233 1,786,672 1,234,721 2,452,713 4,764,008 -
753,730,607 139,225,050 69,625,907 63,647,057 70,857,241 67,404,106 51,651,432 85,791,367 152,201,112 53,327,335
Net assets 35,077,393 24,381,585 79,560,548 38,678,295 86,306,045 (11,467,418) (9,334,711) (46,538,586) (95,750,462) (30,757,903)

Reserves 13,368,809
Surplus on revaluation of investments 738,973
35,077,393
Regarding behaviour of non-maturity deposits (non-contractual deposits), the Bank has carried out a behavioural study using the
Value at Risk (VaR) methodology based on 5 years data. On the basis of its findings, 29.3% of current accounts and 28.6% of
saving accounts are bucketed into 'Upto 1-Year maturity' whereas, 70.7% of current accounts and 71.4% of savings accounts
are bucketed into maturities of above 1-Year.

46.4 Operational risk

The Bank uses Basic Indicator Approach (BIA) for assessing the capital charge for operational risk. Under BIA the capital
charge is calculated by multiplying average positive annual gross income of the Bank over past three years with 15% as per
guidelines issued by SBP under Basel II.
To reduce losses arising from operational risk, the Bank has strengthened its risk management framework by developing
policies, strategies, guidelines and manuals. It also includes set up of functions like operational risk management, prevention
of fraud and forgery and information security function, defining responsibilities of individuals, implementing four eye principle,
enhancing security measures, improving efficiency and effectiveness of operations, outsourcing and improving quality of
human resources through trainings and development.
47 PROFIT / (LOSS) DISTRIBUTION TO DEPOSITORS' POOLS AND SPECIFIC POOLS
47.1 The Bank managed following general and specific pools during the year:
2018
Amount of
Profit rate return
Percentage of Mudarib Share
Profit Rate and distributed to
General Remunerative Profit rate Profit Mudarib transferred
weightage Mudarib remunerative
(Savings and Fixed) return earned - Sharing Ratio Share through Hiba
announcement Fee deposits
Depositors' Pools Average of Mudarib transferred to
period (Savings and
through Hiba remunerative
Fixed) - Average
deposits
PKR Pool Monthly 7.06% 50% 13,314,826 3.91% 10% 1,388,628

USD Pool Monthly 3.81% 75% 720,723 0.95% - -
GBP Pool Monthly 1.18% 90% 20,169 0.12% - -
EUR Pool Monthly 0.17% 90% 1,637 0.02% - -
2017
Amount of
Profit rate return
period (Savings and
Fixed) - Average
deposits
PKR Pool Monthly 6.42% 50% 10,872,732 3.65% 14% 1,491,157
USD Pool Monthly 3.09% 75% 424,879 0.77% - -
GBP Pool Monthly 1.32% 90% 19,505 0.13% - -
EUR Pool Monthly 0.66% 90% 5,885 0.06% - -
2018
Amount of
Profit Rate and
Profit rate Profit Investment Profit rate return Mudarib transferred
Specific Pools weightage
return earned Sharing Ratio ratio distributed Share through Hiba
announcement
transferred to
period
deposits
Islamic Export Refinance

(IERS) Musharaka Pool Monthly 5.16% -* -* 2.19% N/A N/A
Inter Bank Musharaka /

Mudaraba borrowing Pool As required 11.46% - 5.24% -* -* 10.70% - 5.60% N/A N/A
Special Sharikah Certificate

borrowing Pool As required 15.55% - 5.24% -* -* 10.80% - 3.50% N/A N/A
* The profit sharing ratio and the investment ratio varies on case to case basis.

2017
Amount of
Profit Rate and
announcement
transferred to
period
deposits



47.2 Following weightages have been assigned to different major products under the General pools during the year:
Percentage to Total Mudaraba Maximum Minimum Maximum Minimum

based Deposits Weightage Weightage Weightage Weightage
2018 2017 2018 2018 2017 2017
PKR Pool
Saving Accounts 24.05% 23.37% 0.67 0.57 0.67 0.66
Meezan Bachat Account 18.69% 18.57% 0.88 0.57 0.88 0.66
Karobari Munafa Account 10.11% 10.83% 1.36 0.57 1.34 0.66
Certificate of Islamic Investment Plus 10.39% 12.46% 1.72 0.70 1.49 1.16
Meezan Aamdan Certificate 7.80% 8.71% 1.72 1.19 1.67 1.57
USD Pool
Saving Accounts 4.64% 3.73% 0.45 0.45 0.45 0.45
Certificate of Islamic Investment 2.33% 1.71% 1.35 1.35 1.35 0.77
GBP Pool
Saving Accounts 0.49% 0.46% 0.27 0.27 0.27 0.27
EUR Pool
Saving Accounts 0.27% 0.29% 0.27 0.27 0.27 0.27
47.3 Allocation of Income and Expenses to Depositors' Pools

Following are material items of revenues, expenses, gains and losses
2018 2017
Rupees in ‘000
Profit / return earned on islamic financing and related assets, investments and placements 46,724,070 35,375,577
Other Income (including other charges) 2,717,152 2,209,095
Directly related costs attributable to pool (1,431,931) (959,646)

48 GENERAL
Comparative information has been re-classified, re-arranged or additionally incorporated in these financial statements, wherever
necessary to facilitate comparison and better presentation.
49 NON-ADJUSTING EVENT
The Board of Directors in its meeting held on February 21, 2019 has announced final cash dividend of Rs 2 per share (20%). The
financial statements for the year ended December 31, 2018 do not include the effect of this appropriation which will be accounted
for in the financial statements for the year ending December 31, 2019.
50 RECLASSIFICATIONS
As a result of change in forms for the preparation of financial statements issued by SBP and for better presentation, corresponding
figures have been rearranged as follows:
Transfer from Transfer to Rupees in '000

Aggregate
Deposits and other accounts - Current accounts Bills payable - In Pakistan
(non-remunerative) 6,006,942
Other Liabilities - Provision against off Other assets - Provision against
balance sheet obligations other assets - Acceptances 35,451
Profit / return earned on Islamic financing Profit on deposits and other dues expensed
and related assets, investments and placements
and income from dealing in foreign currencies 410,908
Other income Provisions & write offs - net 23,553
Other reversals of provision Provisions & write offs - net 13,524
51 DATE OF AUTHORISATION
These financial statements were authorised for issue on February 21, 2019 by the Board of Directors of the Bank.


Statement Showing Written-Off Financing or Any Other Financial
Relief of Rupees 500,000 or Above (Annexure 1)
During the year ended December 31, 2018
Rupees in ‘000
Statement showing written-off financing or any other financial relief of rupees 500,000 and above during the year ended December 31, 2018.
S. Name and Father's Outstanding liabilities as at January 1, 2018 Principal Profit Other Total
No. address of the CNIC No. Name Principal Profit Others Total written-off written-off Financial (9+10+11)
borrower (5+6+7) Relief
1 2 3 4 5 6 7 8 9 10 11 12
1 Muhammad 35202-0278894-1 M.A. Rauf Mian 11,765 17,906 913 30,584 - 18,217 913 19,130
Anjum
Rauf Mian
House No. 161/2,

Block U, Defence
Housing Authority,
Lahore
2 Abdul Rasheed 42301-5380243-9 Saleh 637 447 139 1,223 - 447 139 586
Mohammad
B-603, 7th Floor,
Al Habib Pride,
Plot # 5, CL-8,
Civil Lines,
Karachi
3 Asif Haider 42301-1275355-3 Syed - 3,543 268 3,811 - 1,790 - 1,790

Mubeen
Flat # A-202, Zaidi
Second floor,
Sachi Tower,
Muhammad Ali
Jinnah Road,
Karachi
12,402 21,896 1,320 35,618 - 20,454 1,052 21,506

Consolidated
Financial Statements
Statement of Financial Position 237
Profit and Loss Account 238
Statement of Comprehensive Income 239
Statement of Changes in Equity 240
Cash Flow Statement 241
Financial Statements 242
Statement showing
written-off financing (Annexure 1) 314
Consolidated Statement of Financial Position
Note
3.2 Restated Restated
2018 2017 2016
ASSETS Rupees in ‘000
Cash and balances with treasury banks 7 65,022,412 64,556,409 56,037,043

Balances with other banks 8 8,277,146 4,940,090 12,067,855
Due from financial institutions - net 9 184,814,600 147,229,221 129,115,165
Investments - net 10 127,115,376 123,160,901 134,796,574
Islamic financing and related assets - net 11 512,564,522 419,929,149 311,530,270
Fixed assets 12 13,228,398 11,464,973 8,564,766
Intangible assets 13 644,956 529,613 466,920
Deferred tax asset 14 868,024 - -
Other assets - net 15 29,215,973 21,265,777 14,977,439
941,751,407 793,076,133 667,556,032
LIABILITIES
Bills payable 16 23,750,543 17,175,035 13,756,970

Due to financial institutions 17 36,407,811 36,813,295 32,005,501
Deposits and other accounts 18 785,444,592 667,173,368 559,373,880
Sub-ordinated Sukuk 19 14,000,000 7,000,000 7,000,000
Deferred tax liabilities 14 - 230,787 1,955,203
Other liabilities 20 38,571,522 26,274,075 18,691,914
898,174,468 754,666,560 632,783,468
NET ASSETS 43,576,939 38,409,573 34,772,564
REPRESENTED BY
Share capital 21 11,691,924 10,629,022 10,027,379

Reserves 22 15,185,565 13,393,125 9,724,001
Unappropriated profit 15,738,899 12,563,156 11,340,678
(Deficit) / surplus on revaluation of assets - net of tax 23 (45,883) 816,295 2,458,517
42,570,505 37,401,598 33,550,575
NON-CONTROLLING INTEREST 24 1,006,434 1,007,975 1,221,989

43,576,939 38,409,573 34,772,564
CONTINGENCIES AND COMMITMENTS 25
The annexed notes 1 to 52 and Annexure 1 form an integral part of these consolidated financial statements.


Consolidated Profit and Loss Account
Note
3.2 Restated
2018 2017
Rupees in ‘000
Profit / return earned on Islamic financing and related assets,
investments and placements 26 48,629,139 36,434,663
Profit on deposits and other dues expensed 27 20,453,359 15,681,641
Net spread earned 28,175,780 20,753,022
OTHER INCOME
Fee and commission income 28 6,822,735 6,030,008
Dividend income 242,429 287,977
Foreign Exchange Income 1,318,460 1,210,827
(Loss) / gain on securities - net 29 (39,376) 939,266
Unrealised loss on held for trading investments - (1,708)
Other income 30 313,486 387,460
8,657,734 8,853,830
Total income 36,833,514 29,606,852
OTHER EXPENSES
Operating expenses 31 19,787,222 17,125,835
Workers Welfare Fund 20.4 383,801 290,837
Other charges 32 16,419 10,824
Total other expenses 20,187,442 17,427,496
16,646,072 12,179,356
Share of results of associates before taxation (298,031) (963,186)
Profit before provisions 16,348,041 11,216,170
Provisions and write offs - net 33 1,168,051 1,283,326

Extraordinary / unusual items - -
Taxation 34 6,046,080 4,152,851

Profit after taxation 9,133,910 5,779,993
Attributable to:
Shareholders of the Holding company 8,957,761 5,618,512
Non-controlling interest 176,149 161,481
9,133,910 5,779,993
Rupees
Restated
Basic and diluted earnings per share 35 7.66 4.95


Consolidated Statement of
Comprehensive Income
Note
3.2 Restated
2018 2017
Rupees in ‘000
Profit after taxation for the year attributable to:

Non-controlling interest 24 176,149 161,481
9,133,910 5,779,993
Other Comprehensive income
Items that may be reclassified to profit and loss account in subsequent periods:
Share in results of associates relating to investment classified

as 'available for sale' (27,420) (106,552)
Deferred tax on share of results of associates (49,902) 49,902
Deficit on revaluation of investments (1,241,550) (2,439,341)
Deferred tax on revaluation of investments 434,542 853,769
23 (884,330) (1,642,222)
Items that will not be reclassified to profit and loss account in subsequent periods:
Remeasurements of defined benefit plan (8,980) (194,251)

Tax on remeasurements of defined benefit plan 2,595 67,988
(6,385) (126,263)
Surplus on revaluation of non-banking assets 23 34,080 -
Deferred tax on revaluation of non-banking assets (11,928) -
22,152 -
Total Comprehensive Income for the year 8,265,347 4,011,508
Attributable to:
Non-controlling interest 24 173,459 160,486
8,265,347 4,011,508


Consolidated Statement of Changes in Equity
Capital Revenue Surplus / (deficit) on

reserves reserves revalution of
Share Share Statutory Non - Distributable General Unappropriated Investments Non-banking Non- Total
capital premium reserve* Capital Reserve - Gain reserve profit Assets controlling
on Bargain Purchase Interest
Rupees in ‘000
Balance as at January 1, 2017 - Restated (Note 3.2) 10,027,379 - 6,515,372 3,117,547 91,082 11,340,678 2,458,517 - 1,221,989 34,772,564
Profit after taxation for the year - - - - - 5,618,512 - - 161,481 5,779,993
Other Comprehensive loss for the year - net of tax - - - - - (125,268) (1,642,222) - (995) (1,768,485)
- - - - - 5,493,244 (1,642,222) - 160,486 4,011,508

Transfer to statutory reserve - - 1,262,553 - - (1,262,553) - - - -
Transactions with owners recognised

directly in equity
Dividend payout by Subsidiary - - - - - - - - (374,500) (374,500)
Issue of right shares 601,643 2,406,571 - - - - - - - 3,008,214
Final cash dividend for the year 2016 - - - - - (1,253,422) - - - (1,253,422)
Interim cash dividend for the year 2017 - - - - - (1,754,791) - - - (1,754,791)

- - - - - (3,008,213) - - - (3,008,213)
Balance as at December 31, 2017 - Restated (Note 3.2) 10,629,022 2,406,571 7,777,925 3,117,547 91,082 12,563,156 816,295 - 1,007,975 38,409,573
Profit after taxation for the year - - - - - 8,957,761 - - 176,149 9,133,910
Other Comprehensive loss for the year - net of tax - - - - - (3,695) (884,330) 22,152 (2,690) (868,563)
- - - - - 8,954,066 (884,330) 22,152 173,459 8,265,347
Transfer to statutory reserve - - 1,792,440 - - (1,792,440) - - - -
Transactions with owners recognised

directly in equity
Issue of bonus shares 1,062,902 - - - - (1,062,902) - - - -
Dividend payout by Subsidiary - - - - - - - - (175,000) (175,000)
Final cash dividend for the year 2017 - - - - - (1,328,628) - - - (1,328,628)
Interim cash dividend for the year 2018 - - - - - (1,594,353) - - - (1,594,353)
- - - - - (2,922,981) - - - (2,922,981)
Balance as at December 31, 2018 11,691,924 2,406,571 9,570,365 3,117,547 91,082 15,738,899 (68,035) 22,152 1,006,434 43,576,939
* This represents reserve created under section 21(i)(a) of the Banking Companies Ordinance, 1962.


Consolidated Cash Flow Statement
Note
3.2 Restated
2018 2017
Rupees in ‘000
CASH FLOWS FROM OPERATING ACTIVITIES
Less: Dividend income (242,429) (287,977)
14,937,561 9,644,867
Adjustments for non-cash charges and other items:
Depreciation 1,562,971 1,510,979
Provisions and write offs - net 1,168,051 1,283,326
Unrealised loss on held for trading investments - 1,708
Charge for defined benefit plan 359,607 286,498
Gain on sale of operating fixed assets (85,781) (73,554)
Share of results of associates 298,031 963,186
3,533,047 4,149,651
18,470,608 13,794,518
Due from financial institutions (37,585,379) (18,114,056)
Islamic financing and related assets (93,511,797) (109,095,515)
Other assets (7,920,096) (3,841,828)
(139,017,272) (131,051,399)

Bills payable 6,575,508 3,418,065
Due to financial institutions (405,484) 4,807,794
Deposits and other accounts 118,271,224 107,799,488
Other liabilities 11,112,744 3,731,828
135,553,992 119,757,175
15,007,328 2,500,294
Contribution to defined benefit plan (449,616) (128,975)
Income tax paid (5,515,941) (4,227,963)
Net cash flow from / (used in) operating activities 9,041,771 (1,856,644)
CASH FLOWS FROM INVESTING ACTIVITIES

Net (investment) / redemption in securities (5,828,877) 7,538,154
Dividend received 264,003 661,956
Investments in operating fixed assets (3,389,050) (4,479,003)
Investments in intangible assets (345,511) (240,201)
Proceeds from sale of fixed assets 148,435 141,371
Net cash (used in) / flow from investing activities (9,151,000) 3,622,277
CASH FLOWS FROM FINANCING ACTIVITIES

Issuance of Right Shares - 3,008,214
Issuance of Sub-ordinated Sukuk - Additional Tier I 7,000,000 -
Dividend paid to equity shareholders of the Bank (2,912,712) (3,007,746)
Dividend paid to non controlling interest (175,000) (374,500)
Net cash flow from / (used in) financing activities 3,912,288 (374,032)
Increase in cash and cash equivalents 3,803,059 1,391,601

Cash and cash equivalents at the beginning of the year 36 69,496,499 68,104,898
Cash and cash equivalents at the end of the year 36 73,299,558 69,496,499


Consolidated Financial Statements
1 THE GROUP AND ITS OPERATIONS
1.1 The "Group" consists of:
Holding Company
- Meezan Bank Limited
Subsidiary Company
- Al Meezan Investment Management Limited
1.2 Meezan Bank Limited (the Bank / Holding company / MBL) was incorporated in Pakistan on January 27, 1997, as a public
limited company under the Companies Act, 2017 (previously Companies Ordinance, 1984), 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.
1.3 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.
1.4 The Bank was operating through six hundred and sixty branches as at December 31, 2018 (2017: six hundred and one
branches). Its registered office is at Meezan House, C-25, Estate Avenue, SITE, Karachi, Pakistan.
1.5 Al Meezan Investment Management Limited (AMIML) ('the Subsidiary company') is involved in asset management, investment
advisory, portfolio management, equity research, underwriting and corporate finance. The Bank holds 65% of the share
capital of AMIML.
1.6 The Group’s associates are as follows:
The Group considers the following open end funds managed by AMIML as its associates:
- Meezan Islamic Fund
- Meezan Balanced Fund
- Meezan Islamic Income Fund
- Al-Meezan Mutual Fund
- KSE Meezan Index Fund
- Meezan Sovereign Fund
- Meezan Tahaffuz Pension Fund
- Meezan Energy Fund
- Meezan Gold Fund
- Meezan Cash Fund
- Meezan Dedicated Equity Fund
- Meezan Strategic Allocation Fund
- Meezan Asset Allocation Fund
- Meezan Financial Planning Fund of Funds
- Meezan Rozana Amdani Fund
The country of establishment in respect of all of the above funds is Pakistan. Further, all the above funds are individual
open-end schemes and have been established by execution of trust deeds between AMIML and the Central Depository
Company of Pakistan Limited (CDC) as the Trustee.

2 BASIS OF PRESENTATION AND CONSOLIDATION
2.1 These consolidated financial statements have been prepared from the information available in the audited financial statements
of the Meezan Bank Limited (Holding company) for the year ended December 31, 2018 and the condensed interim financial
statements of Al Meezan Investment Management Limited (AMIML) for the six months period ended December 31, 2018
which have only been subjected to review but are not audited. AMIML prepares its annual financial statements up to June
30 each year. In preparing the consolidated profit and loss account for the year ended December 31, 2018 the results for
the period from January 1, 2018 to June 30, 2018 have been calculated from the audited financial statements of AMIML for
the year ended June 30, 2018 after eliminating the results for the six months period ended December 31, 2017.
These consolidated financial statements comprise of the consolidated statement of financial position as at December 31,
2018 and the consolidated profit and loss account, the consolidated statement of comprehensive income, the consolidated
statement of changes in equity and the consolidated cash flow statement together with the notes forming part thereof for
the year ended December 31, 2018.
The associates have been accounted for in these consolidated financial statements under the equity method of accounting
on the respective basis as follows:
Entity Source of information
Meezan Balanced Fund Financial statements for the half years ended December 31, 2018 and 2017 (unaudited
but subject to a limited review by its statutory auditors) and audited financial statements
for the year ended June 30, 2018.
Al Meezan Mutual Fund Limited Financial statements for the half years ended December 31, 2018 and 2017 (unaudited
Meezan Islamic Fund Financial statements for the half years ended December 31, 2018 and 2017 (unaudited
Meezan Islamic Income Fund Financial statements for the half years ended December 31, 2018 and 2017 (unaudited
KSE Meezan Index Fund Financial statements for the half years ended December 31, 2018 and 2017 (unaudited
Meezan Cash Fund Financial statements for the half years ended December 31, 2018 and 2017 (unaudited
Meezan Tahaffuz Pension - Financial statements for the half years ended December 31, 2018 and 2017 (unaudited
Equity Sub Fund but subject to a limited review by its statutory auditors) and audited financial statements
Meezan Tahaffuz Pension - Financial statements for the half years ended December 31, 2018 and 2017 (unaudited
Gold Sub Fund but subject to a limited review by its statutory auditors) and audited financial statements
Meezan Financial Planning Financial statements for the half years ended December 31, 2018 and 2017 (unaudited
Fund of Funds - Conservative but subject to a limited review by its statutory auditors) and audited financial statements
Meezan Gold Fund Financial statements for the half year ended December 31, 2018 and 2017 (unaudited
Meezan Energy Fund Financial statements for the half year ended December 31, 2018 and 2017 (unaudited but
subject to a limited review by its statutory auditors) and audited financial statements for the
year ended June 30, 2018.
Meezan Strategic Allocation Financial statements for the half year ended December 31, 2018 and 2017 (unaudited
Fund - MSAP II but subject to a limited review by its statutory auditors) and audited financial statements

Meezan Rozana Amdani Fund Financial statements for the period from December 28, 2018 to December 31, 2018
(unaudited but subject to a limited review by its statutory auditors).
2.2 Subsidiaries are those enterprises in which the Holding company directly or indirectly exercises control over investee, and
/ or beneficially owns or holds more than 50 percent of the voting securities or otherwise, has power to elect and appoint
more than 50 percent of its directors. The financial statements of the subsidiary are included in these consolidated financial
statements from the date when the control commenced. The financial statements of AMIML have been consolidated on a
line-by-line basis. The Group applies uniform accounting policies for similar transactions and events in similar circumstances
except where specified otherwise.
Associates are entities over which the Group has a significant influence but not control over investee. The Group's share in
an associate is the aggregate of the holding in that associate by the Holding company and by the Subsidiary. Investments
in associates are accounted for under the equity method of accounting and are initially recognised at cost, thereafter for
the post acquisition change in the Group's share of net assets of the associates. These consolidated financial statements
include the Group's share of income and expenses of associates from the date that significant influence commences until
the date that such influence ceases.
Non-controlling interest is that part of the net results of operations and of net assets of the subsidiary attributable to interests
which are not owned by MBL.
All material inter-group balances, transactions and resulting profits / losses have been eliminated.
3 STATEMENT OF COMPLIANCE
3.1 These consolidated financial statements (here-in-after referred to as "financial statements") have been prepared in accordance
with the accounting and reporting standards as applicable in Pakistan. The accounting and reporting standards comprise
of:
- 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 as are
notified under the Companies Act, 2017;
- Provisions of and directives issued under the Banking Companies Ordinance, 1962 and the Companies Act,
2017; and
- Directives issued by the State Bank of Pakistan (SBP) and the Securities Exchange Commission of Pakistan
(SECP).
Whenever the requirements of the Banking Companies Ordinance, 1962, the Companies Act, 2017 or the directives issued by
the SBP and the SECP differ with the reuirements of IFRS or IFAS the requirements of the Banking Companies Ordinance, 1962,
the Companies Act, 2017 and the said directives, shall prevail.
3.2 Adoption of new forms for the preparation of financial statements
During the year, the SBP, vide its BPRD Circular No. 02 dated January 25, 2018, issued the revised forms for the preparation of
the annual financial statements of the banks which are applicable for annual periods beginning on or after January 01, 2018. The
implementation of the revised forms has resulted in certain changes to the accounting policies of the Group and the presentation
and disclosures of various elements of the consolidated financial statements. These changes are summarized below:
3.2.1 Changes in the accounting policies:
- As per the revised forms, “Surplus / deficit on revaluation of assets” is now required to be presented as a
component of the equity of the Group. Previously, such surplus / deficit was required to be presented separately
from the equity of the Group and changes in such surplus / deficit were not recognized in the consolidated
statement of comprehensive income. Consequent upon the change in the presentation requirements, the surplus /
deficit on revaluation of assets and changes in such surplus / deficit during the year are reflected in the relevant
section of the consolidated statement of financial position, consolidated statement of comprehensive income
and consolidated statement of changes in equity for the current and prior years presented in these
consolidated financial statements.
- Acceptances representing undertakings by the Group to pay bills of exchange drawn on customers are now
required to be recognized as liabilities of the Group at the date of acceptance. Previously, acceptances were
only recognized as off-balance sheet obligations and disclosed under contingent liablities. As a result of the
above change, the other assets and other liabilities of the Group increased by Rs 10,599 million, Rs 7,109 million
and Rs 4,288 million as of 2018, 2017 and 2016 respectively.

3.2.2 Significant changes to the presentation and disclosures:
In addition, to above changes in accounting policies, certain changes to the presentation of the financial
statements have been made such as other reversal of provisions / write offs have now been combined under
provisions & write off - net (note 33), Business segments have been identifed and reported as per the requirements
of IFRS 8 - "Operating Segments" (note 42), cost of conversion of foreign currency deposits is now included in "Profit on
deposits and other dues expensed" (note 27).
Further, certain, new disclosures have been introduced which include category of classification for non-performing
“Due from Financial Institutions” (Note 9.4) and "Investments" (note 10.4); movement in “Non-Banking Assets acquired
in satisfaction of Claims” (note 15.3.1); for “Non-Banking Assets acquired in satisfaction of Claims” sold during the
year, disposal proceeds, cost of such asset, impairment / depreciation and realized gains or losses (note 15 and
note 30); composition of deposits (note 18.1); breakdown of Fee and Commission (note 28); presentation of operating
expenses has been changed (note 31); Concentration of Islamic financings and province wise disbursements and
utilization of Islamic financings (note 47.1.1.5 and note 47.1.1.6); and assets split between trading and banking
books (note 47.2.2).
The Group has adopted the above changes in the presentation and made additional disclosure to the extent
applicable to its operations and corresponding figures have been rearranged / reclassified to correspond to current
year’s presentation. Such reclassifications / re-arrangements are disclosed in note 51 to these financial statements.
3.2.3 The SBP, vide its BPRD Circular No. 01 January 25, 2017 issued "Guidelines and Disclosures on Governance and
Remuneration Practices". Certain disclosure related to remuneration of Directors and management of the Holding
company were required to be presented in the financial statements in terms of such guidelines. Accordingly, revised
forms of the financial statement issued by the SBP incorporate such disclosure requirements. However, SBP through its
circular number BPRD/R&PD/2018/17232 dated August 08, 2018 deferred the reporting of such disclosures till
December 31, 2019. Therefore, the management has reported the remuneration disclosures in these financial
statement in accordance with previous disclosure requirements of the SBP (note 40).
3.3 The SBP, through its BSD Circular No. 10 dated August 26, 2002, has deferred the implementation of International Accounting
Standard (IAS) 39 - "Financial Instruments: Recognition and Measurement" and IAS 40 - "Investment Property" for Banking
Companies in Pakistan, till further instructions. Accordingly, the requirements of these Standards have not been considered
in the preparation of these consolidated financial statements. Further, the SECP has deferred the applicability of International
Financial Reporting Standard (IFRS) 7 "Financial Instruments: Disclosures" through its S.R.O. 411(I)/2008 dated April 28,
2008. Accordingly, the requirements of this standard have also not been considered in the preparation of these consolidated
financial statements. However, investments and non-banking assets have been classified and valued in accordance with
the requirements prescribed by the SBP through various circulars.
3.4 The SBP vide its BPRD Circular No. 04 dated February 25, 2015 has clarified that the reporting requirements of IFAS 3 for Islamic
Banking Institutions (IBIs) relating to annual, half yearly and quarterly financial statements would be notified by SBP through
issuance of specific instructions and uniform disclosure formats in consultation with IBIs. These reporting requirements have not
been ratified to date. Accordingly, the disclosures requirements under IFAS 3 have not been considered in these consolidated
financial statements.
3.5 The SECP vide its notification SRO 56 (1) /2016 dated 28 January 2016, has notified that the requirements of IFRS 10 (Consolidated
Financial Statements) and section 228 of the Companies Act, 2017, will not be applicable with respect to the investment in mutual
funds established under Trust structure.
3.6 Standards, interpretations and amendments to published approved accounting standards that are effective in the
current year
The Group has adopted the following accounting standard and the amendments and interpretation of IFRSs which became
effective for the current year:
Standard or Interpretation
- IFRS 2 - Share-based Payments – Classification and Measurement of Share-based Payments Transactions (Amendments)
- IFRS 4 - Insurance Contracts: Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts – (Amendments)
- IFRIC Interpretation 22 - Foreign Currency Transactions and Advance Consideration
Improvements to Accounting Standards Issued by the IASB in December 2016
- IAS 28 - Investments in Associates and Joint Ventures: Clarification that measuring investees at fair value through profit or loss
is an investment-by-investment choice.
The adoption of the above amendments, improvements to accounting standards and interpretations did not have any effect on
the financial statements.

3.7 Standards, interpretations and amendments to published approved accounting standards that are not yet effective
3.7.1 The following standards, amendments and interpretations with respect to the approved accounting standards would be
effective from the dates mentioned thereagainst:
Standard, Interpretations and Amendments Effective date (accounting

periods beginning on or after)
- IFRS 3 - Definition of a Business (Amendments) January 01, 2020
- IFRS 9 - Financial Instruments: Classification and Measurement July 01, 2018
- IFRS 9 - Prepayment Features with Negative Compensation – (Amendments) January 01, 2019
- IFRS 10 - Consolidated Financial Statements and IAS 28 Investment in Associates

and Joint Ventures - Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture (Amendment) Not yet finalized
- IFRS 15 - Revenue from Contracts with Customers July 01, 2018
- IFRS 16 - Leases January 01, 2019
- IFRIC 23 - Uncertainty over Income Tax Treatments January 01, 2019
- IAS 1/ IAS 8 - Definition of Material (Amendments) January 01, 2020
- IAS 19 - Plan Amendment, Curtailment or Settlement (Amendments) January 01, 2019
- IAS 28 - Long-term Interests in Associates and Joint Ventures (Amendments) January 01, 2019
3.7.2 The above standards, amendments and interpretations are not expected to have any material impact on the Group's
financial statements in the period of initial application, other than IFRS 9 and IFRS 16. With regard to IFRS 9, the
Group considers that as the Prudential Regulations and other SBP directives currently provide the accounting
framework for the measurement and valuation of investments and provision against non performing financing, the
implementation of IFRS 9 may require changes in the regulatory regime. Therefore, the Group expects that the SBP
would issue suitable guidance and instruction on the application of IFRS 9 for the banking sector of Pakistan. With
regard to IFRS 16, the Group is currently evaluating the impact of application of IFRS 16 on its consolidated financial
statements.
3.7.3 In addition to the above standards and amendments, improvements to various accounting standards have also
been issued by the IASB in December 2017. Such improvements are generally effective for accounting periods
beginning on or after 01 January 2019. The Group expects that such improvements to the standards will not have
any impact on the consolidated financial statements in the period of initial application.
Further, following new standards have been issued by IASB which are yet to be notified by the SECP for the purpose of
applicability in Pakistan.
Standards
- IFRS 14 – Regulatory Deferral Accounts

- IFRS 17 – Insurance Contracts
4 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
4.1 The preparation of the consolidated financial statements in conformity with the approved accounting standards as applicable in
Pakistan requires the use of certain critical accounting estimates. It also requires management to exercise judgments in the
process of applying the Group’s accounting policies. The significant accounting areas where various assumptions and estimates
are significant to the Group's financial statements or where judgment was exercised in the application of the accounting policies
are as follows:
(a) Classification of investments in accordance with the Group's policy (notes 6.4 and 10);

(b) Provision against non-performing Islamic financing and related assets (notes 6.3.2 and 11);
(c) Impairment of investments in equity instruments of associates and non associate entities (notes 6.4.5, 10 and 33);
(d) Accounting for defined benefit plan (notes 6.12 and 37);
(e) Depreciation / amortisation of fixed assets and intangible assets (notes 6.5, 12 and 13); and
(f) Assumption and estimation in recognition of provision for taxation (current and prior years) and deferred taxation
(notes 6.6,14, 20 and 34).
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including
expectation of future events that are believed to be reasonable under the circumstances. Actual results may differ from
these estimates.
5 BASIS OF MEASUREMENT
5.1 These consolidated financial statements have been prepared under the historical cost convention except that certain
investments, foreign currency balances, Non-banking assets acquired in satisfaction of claims and commitments in
respect of certain foreign exchange contracts have been marked to market and carried at fair value in accordance with
the requirements of the SBP. In addition, obligation in respect of staff retirement benefit and employees compensated
leave balances are carried at present value as per acturial valuation.
5.2 Functional and Presentation Currency
Items included in the financial statements are measured using the currency of the primary economic environment in which
the Group operates. These consolidated financial statements are presented in Pakistani Rupees, which is the Group's
functional and presentation currency.
5.3 Rounding off
Figures have been rounded off to the nearest thousand rupees unless otherwise stated.
6 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below.
6.1 Cash and cash equivalents

Cash and cash equivalents comprise of cash and balances with treasury banks and balances with other banks in current
and deposit accounts.
6.2 Due to / from financial institutions
Bai Muajjal
In Bai Muajjal, the Group sells sukuk on credit to other financial institutions. The credit price is agreed at the time of sale
and such proceeds are received at the end of the credit period.
In Musharaka / Mudaraba, the Group invests in the shariah compliant business pools of the financial institutions at the
agreed profit and loss sharing ratio.
Musharaka from State Bank of Pakistan under IERS

Under IERS, the Group accepts funds from the SBP under shirkat-ul-aqd to constitute a pool for investment in export refinance
portfolio of the Group under the guidelines issued by the SBP. The profit of the pool is shared as per the agreed weightages
between the partners.
6.3 Islamic financing and related assets
Murabaha
In Murabaha transactions, the Group purchases the goods and after taking the possession, sells them to the customer on
cost plus profit basis either in a spot or credit transaction.
Ijarah
Ijarah assets are stated at cost less depreciation and are disclosed as part of 'Islamic financing and related assets'. The
rental received / receivable on Ijarah under Islamic Financial Accounting Standard - 2 ‘Ijarah’ (IFAS 2) are recorded as
income / revenue. The Group charges depreciation from the date of recognition of Ijarah of respective assets to mustajir.
Ijarah assets are depreciated over the period of Ijarah using the straight line method. Ijarah rentals outstanding are disclosed in
'other assets' on the Consolidated Statement of Financial Position at amortised cost. Impairment of Ijarah assets is determined in
accordance with the Prudential Regulations issued by the SBP. The provision for impairment of Ijarah assets is shown as
part of 'Islamic financing and related assets'.

Istisna
In Istisna financing, the Group places an order to purchase some specific goods / commodities from its customers to be
delivered to the Group within an agreed time. The goods are then sold by the customer on behalf of the group and the
amount hence financed alongwith profit is paid back to the Group.
Tijarah
In Tijarah financing, the Group purchases specific goods / commodities on cash basis from its customers for onward sale
by the customer on behalf of the group and on subsequent sale, the financed amount alongwith profit is paid back by the
customer to the Group.
In Diminishing Musharakah financing, the Group enters into Musharakah based on Shirkat-ul-milk for financing an agreed share
of fixed asset (e.g. house, land, plant or machinery) with its customers. The customers pay periodic profit as per the agreement
for the utilisation of the Group's Musharakah share and also periodically purchase the Group's share over the tenure of the
transaction.
Running Musharakah
In Running Musharakah financing, the Group enters into financing with the customer based on Shirkatul Aqd or Business
Partnership in the customer's operating business. Under this mechanism the customer can withdraw and return funds to
the Group subject to his Running Musharakah Financing limit during the Musharakah Period. At the end of each quarter /
half year the customer pays the provisional profit as per the desired profit rate which is subject to final settlement based on
the relevant quarterly / half yearly / annual accounts of the customer.
Bai Muajjal
In Bai Muajjal financing, the Group sells Shariah compliant sukuk on credit to customers. The credit price is agreed at the
time of sale and such proceeds are received at the end of the credit period.
Service Ijarah
In Service Ijarah financing, the Group provides financing by acquiring certain agreed services from the customer. After the
purchase of services, the Group appoints the customer to sell these services in the market over a period and provide a sale
confirmation of such sale. The profit is only accrued from the date of receipt of such confirmation.
Wakalah
Wakalah is an agency or a delegated authority where the Muwakkil (principal) appoints the Wakil (agent) to carry out a specific
job on behalf of the Muwakkil. Funds disbursed are initially recorded as ‘Advance against Wakalah. On culmination, the same
are recorded as financing.
Wakalah tul Istithmar
In Wakalah tul Istithmar financing, the Group enters into investment agency transaction with customer acting as an agent of the
Group. Under this mechanism, the funds disbursed are invested by the customer on behalf of the Group and are recorded as
financing upon their investment in the business. At the end of each quarter / half year / other defined period, the customer pays
the provisional profit which is subject to adjustment upon actual declaration of wakala business performance by the agent.
Musawammah
In Musawammah financing, the Group purchases the goods and after taking the possession, sells them to the customer
either in spot or credit transaction, without disclosing the cost.
6.3.1 Islamic financing and related assets are stated net of specific and general provisions against non-performing Islamic
financing and related assets which are charged to the consolidated profit and loss account.
Funds disbursed, under financing arrangements for purchase of goods / assets are recorded as advance. On culmination,
financing are recorded at the deferred sale price net of profit. Goods purchased but remaining unsold at the consolidated
statement of financial position date are recorded as inventories.

6.3.2 Provision against non-performing Islamic financing and related assets
Specific provision
The Group determines provisions against Islamic financing and related assets on a prudent basis in accordance
with the requirements of the Prudential Regulations issued by the SBP.
General provision
In accordance with Prudential Regulations issued by the SBP, general provision against consumer financing should
be maintained at varying percentages based on the non-performing loan ratio present in the portfolio. These
percentages range from 1% to 2.5% for secured and 4% to 7% for unsecured portfolio.
In addition to the above mentioned requirements, the Group has also created a general provision in respect of
financing against potential losses present in the portfolio. This provision is based on management's best estimate
and is approved by the Board of Directors of the Holding company.
The net provisions made / reversed during the year is charged to the consolidated profit and loss account and
accumulated provision is netted off against Islamic financing and related assets. Islamic financing and related
assets are written off when there are no realistic prospects of recovery.
6.3.3 Inventories
The Group values its inventories at the lower of cost and net realisable value.
The net realisable value is the estimated selling price in the ordinary course of business less the estimated cost
necessary to make the sale.
Cost of inventories represents actual purchases made by the Group / customers as an agent of the Group for
subsequent sale.
6.4 Investments
6.4.1 Classification
The Group classifies its investments as follows:
- Held for trading
These are investments which are either acquired for generating profits from short-term fluctuations in market
prices or are securities included in a portfolio for which there is evidence of a recent actual pattern of short-term
profit taking.
- Held to maturity
These are investments with fixed or determinable payments and maturity that the Group has the positive
intent and ability to hold till maturity.
These are investments, which do not fall under 'held for trading' or 'held to maturity' categories.
6.4.2 Regular way contracts
All purchases and sales of investments that require delivery within the time frame established by regulation or
market convention are recognised at the trade date, which is the date on which the Group commits to purchase
or sell the investments.
6.4.3 Initial recognition and measurement
Investments other than those categorised as 'held for trading' are initially recognised at fair value which includes
transaction costs associated with the investments. Investments classified as 'held for trading' are initially recognised at
fair value and transaction costs are expensed in the consolidated profit and loss account.

6.4.4 Subsequent measurement
Subsequent to initial recognition investments are valued as follows:
- Held for trading
These are measured at subsequent reporting dates at fair value. Gains and losses on remeasurement are
included in the net profit and loss for the year.
- Held to maturity
These are measured at amortised cost using the effective profit rate method, less any impairment loss
recognised to reflect irrecoverable amount.
In accordance with the requirements specified by the SBP, quoted securities (other than those classified as 'held
to maturity' and 'investments in associates and subsidiary'), are subsequently re-measured to market value.
Unquoted equity securities are valued at the lower of cost and break-up value. Break-up value of unquoted equity
securities is calculated with reference to the net assets of the investee company as per the latest available audited
financial statements. Investment in other unquoted securities are valued at cost less impairment losses, if any.
Surplus / deficit arising on revaluation of quoted securities which are classified as 'available for sale', is included
in the Statement of Comprehensive. On derecognition of available for sale investments, the cumulative gain or
loss previously reported in consolidated other comprehensive income is transferred to consolidated profit and
loss for period within consolidated statement of comprehensive income.
6.4.5 Impairment
Available for sale and Held to maturity investments
Impairment loss in respect of investments classified as available for sale and held to maturity (except sukuk
certificates) is recognised based on management's assessment of objective evidence of impairment as a result of
one or more events that may have an impact on the estimated future cash flows of the investments. A significant or
prolonged decline in fair value of an equity investment below its cost is also considered an objective evidence of
impairment. Provision for diminution in the value of sukuk certificates is made as per the Prudential Regulations
issued by the SBP. In case of impairment in available-for-sale investments, the cumulative gain or loss previously
reported in other comprehensive income is transferred to profit and loss for period. For investments classified as
held to maturity, the impairment loss is recognised in the consolidated profit and loss account.
6.4.6 Cost of investment is determined on moving average basis.
6.5 Operating fixed assets
6.5.1 Tangible assets
Tangible operating fixed assets are stated at cost less accumulated depreciation and any identified impairment
loss. Items of fixed assets costing Rs 20,000 or less are not capitalised and are charged off in the month of purchase.
Profit or loss on disposal of fixed assets is included in the consolidated profit and loss account currently.
6.5.2 Intangible assets
Intangible assets comprise of computer software. Intangible assets with definite useful lives are stated at cost less
accumulated amortisation and impairment losses (if any).
6.5.3 Subsequent costs
Subsequent costs are included in the asset's carrying amounts or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Group and the cost
of the item can be measured reliably. All other repairs and maintenance expenditure are charged to the consolidated
profit and loss account as and when incurred.

6.5.4 Depreciation / amortisation
Depreciation / amortisation is charged to the consolidated profit and loss account by applying the straight line method
in accordance with the rates specified in notes 12.2 and 13 whereby the depreciable value of an asset is written off over
its estimated service life. The Group charges depreciation / amortisation from the month of acquisition and upto the month
preceding the disposal.
6.5.5 Capital work-in-progress
Capital work-in-progress is stated at cost less accumulated impairment losses, if any.
6.5.6 Useful lives and residual values
Useful lives and residual values are reviewed at each Consolidated Statement of Financial Position date and adjusted if
impact on depreciation / amortisation is significant.
6.5.7 Impairment
The Group assesses at each Consolidated Statement of Financial Position date whether there is any indication that
the operating fixed assets may be impaired. If such indication exists, the carrying amounts of such assets are
reviewed to assess whether they are recorded in excess of their recoverable amounts. Where carrying values
exceed the respective recoverable amounts, assets are written down to their recoverable amounts and the resulting
impairment charge is recognised in the consolidated profit and loss account.
6.6 Taxation
Income tax expense comprises of current and deferred tax. Income tax expense is recognised in the consolidated profit
and loss account except to the extent that it relates to items recognised directly in equity, in which case it is recognised in
equity.
Current
The charge for current taxation is based on expected taxable income for the year at the current rates of taxation, after taking
into consideration available tax credits, rebates, tax losses, etc. The charge for current tax also includes adjustments to tax
payable in respect of previous years including those arising from assessments finalised during the year and are separately
disclosed.
Deferred
Deferred tax is recognised using the balance sheet method, providing for temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and amounts used for taxation purposes. Deferred tax is
not recognised for the temporary differences relating to initial recognition of goodwill, initial recognition of assets or liabilities
in a transaction that is not a business combination and that affects neither accounting nor taxable profits and differences
relating to investments in subsidiaries to the extent that they probably will not reverse in the foreseeable future.
Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse,
based on the laws that have been enacted or substantively enacted by the reporting date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against
which the assets can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent
that it is no longer probable that the related tax benefits will be realised.
6.7 Non-banking assets acquired in satisfaction of claims
The non-banking assets acquired in satisfaction of claims are carried at revalued amounts less accumulated depreciation.
These assets are revalued by professionally qualified valuers with sufficient regularity to ensure their net carrying value does not
differ materially from their fair value. Surplus arising on revaluation of property, if any, is credited to the 'surplus on revaluation of
assets' account in the consolidated statement of comprehensive income. Any deficit arising on revaluation is taken to
consolidated profit and loss account directly. On derecognition of the assets, the cumulative gain or loss previously reported in
consolidated other comprehensive income is transferred to unappropriated profit in the consolidated statement of financial
position. Legal fees, transfer cost and direct cost of acquiring title to property is charged to the consolidated profit and loss
account.

6.8 Deposits
Deposits are generated on the basis of two modes i.e. Qard and Mudaraba.
Deposits taken on Qard basis are classified as 'Current accounts' and Deposits generated on Mudaraba basis are classified as
'Savings deposits' and 'Fixed deposits'. No profit or loss is passed on to current account depositors, however the funds of
current accounts are treated as equity for the purpose of profit calculation and any profit earned / loss incurred on those
funds are allocated to the equity of the Holding company. While the product features of each product differ, there is usually
no restriction on withdrawals or number of transactions in current and saving accounts. In case of fixed deposits, pre-mature
withdrawals can be made as per approved terms only.
Profits realised in investment pools are distributed in pre-agreed profit sharing ratio. Rab-ul-Maal share is distributed among
depositors according to weightages assigned at the inception of profit calculation period. Mudarib can distribute its share
of profit to Rab-ul-Maal upto a maximum of 50% of their profit as Incentive profits (Hiba).
Profits are distributed from the pool such that the depositors (remunerative) only bear the risk of assets in the pool during
the profit calculation period. In case of loss in a pool during the profit calculation period, the loss is distributed among the
depositors (remunerative) according to their ratio of Investments.
Asset pools are created at the Holding company’s discretion and the Holding company can add, amend, transfer an asset
to any other pool in the interests of the deposit holders.
6.9 Sub-ordinated Sukuk
The Group records sub-ordinated sukuk initially at the amount of proceeds received. Profit accrued on sub-ordinated sukuk
is charged to the consolidated profit and loss account.
6.10 Pool Management
The Holding company operates general and specific pools for deposits and inter-bank funds accepted / acquired under
Mudaraba and Musharakah modes.
Under the general deposits pools, the Holding company accepts funds on Mudaraba basis from depositors (Rab-ul-Maal)
where the Holding company acts as Manager (Mudarib) and invests the funds in the Shariah Compliant modes of financing,
investments and placements. When utilising investing funds, the Holding company prioritizes the funds received from
depositors over the funds generated from own sources after meeting the regulatory requirement relating to such deposits.
Specific pools are operated for funds acquired / accepted from the State Bank of Pakistan and other banks for Islamic
Export Refinance to the Bank's customers and liquidity management respectively under the Musharakah / Mudaraba
modes.
The profit of each deposit pool is calculated on all the remunerative assets booked by utilising the funds from the pool after
deduction of expenses directly incurred in earning the income of such pool along with related fee income, if any. The directly
related costs comprise of depreciation on ijarah assets, takaful premium, documentation charges etc. No expense of general or
administrative nature is charged to the pools. No provisions against any non-performing asset of the pool is passed on to
the pool except on the actual loss / write-off of such non-performing asset. The profit of the pool is shared between equity
and other members of the pool on the basis of Musharakah at gross level (before charging of mudarib fee) as per the
investment ratio of the equity. The profit of the pool is shared among the members of the pool on pre-defined mechanism
based on the weightages announced before the profit calculation period after charging of mudarib fee. During the year,
the Holding company has given General Hiba to the depositors of PKR General Pool, keeping in view the prescribed
guidelines of Pool Management provided by the SBP and with the approval of the Holding company's Resident Shariah
Board Member. However, Hiba are given at the sole discretion of the Holding company without any contractual commitment
and can be withdrawn or reduced by the Holding company at its sole discretion.
The risk characteristic of each pool mainly depends on the assets and liability profile of each pool. As per the Holding
company's policy, relatively low risk / secured financing transactions and assets are allocated to general depositors pool
of PKR, USD, GBP and Euro. The Holding company maintains General Pools (PKR, USD, EUR, GBP), FI Pools, IERS pool
and Equity pool. The general pools are exposed to general credit risk, asset ownership risk and profit rate risk of the
underlying assets involved.

General Pools:
For General Pools (PKR, USD, EUR, GBP), the Holding company allocates PKR financing to Corporate, SME and
Consumer Finance customers in diversified sectors and avenues of the economy / business as mentioned in note
47.1.1.3. Investments in Sovereign Guarantee Sukuk, Bai Muajjal with State Bank of Pakistan, are also done through
General Pools. All remunerative deposits are tagged to these general pools and their funds generated from the
depositors are invested on priority basis. Due to limited investment options in USD, GBP and EURO pool, funds
from FCY pools are invested in available International Sukuk, Shariah Compliant Nostro accounts and the remaining
funds are taken out and invested in PKR general pool as part of equity. In such cases return from PKR General Pool
is given back to FCY pools, so that returns can be passed on to FCY pool customers accordingly.
IERS Pools:
The IERS pool assets comprise of Sovereign Guarantee Sukuk, and financing to/ sukuk of blue chip companies
and exporters as allowed under the applicable laws and regulations, and as such are exposed to lower credit risk.
The Musharakah with SBP under IERS is tagged to the IERS pool.
FI Pools:
The FI pool assets generally comprise of Sovereign Guarantee Sukuk and financing under diminishing musharakah
mode only and the related liability of the FI pool comprise of Musharakah / Mudarabah from other banks and financial
institutions. These pools are created to meet the liquidity requirements of the Holding company.
Equity Pools:
All other assets including fixed assets, exposure in shares, PKR bai-salam financing and subsidized financing to
the Holding company's employees are tagged to equity pool. To safeguard the interest of customers, all high risk
investments are done through equity pool. The Holding company as Mudarib in the general pools is responsible
for financing costs / assets such as land, building, furniture, fixtures, computers and IT system from its own sources
/ equity.
6.11 Staff retirement benefits
Defined benefit plan of MBL
The Holding company operates an approved funded gratuity scheme for its permanent employees. The scheme was
approved by the tax authorities in April 2000. The liability recognised in the Consolidated Statement of Financial Position in
respect of defined benefit gratuity scheme is the present value of the defined benefit obligation at the Consolidated Statement of
Financial Position date less the fair value of plan assets. Contributions to the fund are made on the basis of actuarial
recommendations. The defined benefit obligation is calculated periodically by an independent actuary using the projected
unit credit method. Last valuation was conducted as on December 31, 2018.
The Holding company also operates End of Service unfunded defined benefit scheme as approved by the Board of Directors of
the Holding company for the benefit of the founding President and Chief Executive Officer of the Holding company. The
defined benefit obligation for this benefit has been calculated by an independent actuary using the projected unit credit
method. The valuation has been carried out on December 31, 2018.
Amounts arising as a result of "Remeasurements", representing the actuarial gains and losses and the difference between
the actual investment returns and the return implied by the net interest cost are recognised in the Consolidated Statement
of Financial Position immediately, with a charge or credit to "Consolidated Other Comprehensive Income" in the periods in
which they occur.
Defined contribution plan
The Group also operates a recognised contributory provident fund for all permanent employees. Equal monthly contributions are
made, both by the Group and the employees, to the fund at a rate of 10% of basic salary.
6.12 Compensated absences
The Group recognises liability in respect of employees compensated absences in the period in which these are earned
upto the date of Consolidated Statement of Financial Position. The provision is recognised on the basis of actuarial valuation
using projected unit credit method.

6.13 Dividend and reserves
Dividend declared and appropriations, except for transfer to statutory reserve, made subsequent to the date of Consolidated
Statement of Financial Position are considered as non adjusting events and are recorded in the financial statements in the
year in which these are approved by the directors / shareholders as appropriate.
6.14 Foreign currency transactions

Transactions and balances
Foreign currency transactions are recorded in rupees at exchange rates prevailing on the date of transaction. Monetary
assets, monetary liabilities and contingencies and commitments in foreign currencies except forward contracts are reported in
Rupees at exchange rates prevalent on the Consolidated Statement of Financial Position date.
Forward contracts other than contracts with the SBP relating to the foreign currency deposits are valued at forward rates
applicable to the respective maturities of the relevant foreign exchange contracts. Forward contracts with the SBP relating
to foreign currency deposit, are valued at spot rate prevailing at the Consolidated Statement of Financial Position date.
Exchange gains and losses are included in the consolidated profit and loss account currently.
Commitments
Commitments for outstanding forward foreign exchange contracts are disclosed at the rates applicable at the reporting
date. Contingent liabilities / commitments for letters of credit, and letters of guarantee denominated in foreign currencies
are expressed in rupee terms at the exchange rates ruling on the reporting date.
Translation gains and losses are included in the consolidated profit and loss account.
6.15 Provisions and contingent assets and liabilities
Provisions are recognised when the Group has a present legal or constructive obligation arising as a result of past events
and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a
reliable estimate of the amount of the obligation can be made. Provisions are reviewed at each date of Consolidated
Statement of Financial Position and are adjusted to reflect the current best estimate.
Contingent assets are not recognised, and are also not disclosed unless an inflow of economic benefits is probable.
Contingent liabilities are not recognised and are disclosed unless the probability of an outflow of resources embodying
economic benefits are remote.
6.16 Acceptances
Acceptances comprise undertakings by the Group to pay bills of exchange drawn on customers. The Group expects most
acceptances to be settled simultaneously with the reimbursement from the customers. Acceptances are accounted for as
on-balance sheet transactions and related balances are disclosed under other assets and other liabilities.
6.17 Offsetting
Financial assets and financial liabilities are offset and the net amount is reported in the Consolidated Statement of Financial
Position when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a
net basis or realise the asset and settle the liability simultaneously.
Income and expenses are presented on a net basis only when permitted by the approved accounting standards as applicable
in Pakistan.
6.18 Revenue recognition
i) Profit on Murabaha (including Commodity Murabaha) and Musawammah is recognised on an accrual basis. Profit
on murabaha and musawammah transactions for the period from the date of disbursement to the date of culmination of
murabaha is recognised immediately upon the later date.
ii) Rental on Ijarah contracts under Islamic Financial Accounting Standard - 2 Ijarah (IFAS 2) are recognised as income on
an accrual basis.
iii) Profit on Bai Muajjal transaction is recognised on an accrual basis.
iv) Profit on Diminishing Musharakah financing is recognised on an accrual basis.
v) Profit on Running Musharakah financing is booked on an accrual basis and is adjusted upon declaration of profit
by Musharakah partners.
vi) Profit on Tijarah and Istisna financing is recognised on an accrual basis commencing from time of sale of goods till
the realisation of sale proceeds by the Bank.
vii) Profit on Service Ijarah is recognised on an accrual basis commencing from the date of confirmation of sale.
viii) Profit on Wakalah tul Istithmar / Wakalah is recognized on an accrual basis and is adjusted upon actual declaration
of wakalah business performance by the agent.

ix) Profit on Sukuk is recognised on an accrual basis. Where Sukuk (excluding held for trading securities) are purchased at
a premium or discount, those premiums / discounts are amortised through the profit and loss account over the
remaining maturity.
x) Commission on letters of credit, acceptances and guarantees is recognised on receipt basis, except for commission on
guarantees in excess of Rs. 200,000 which is recognised over the period of the guarantee. Fee and brokerage
income are recognised when earned.
xi) Dividend income is recognised when the right to receive dividend is established.
xii) Gain or loss on sale of investments is included in the consolidated profit and loss account.
xiii) Gain or loss on disposal of operating fixed assets, ijarah assets and musharaka assets, if any, is taken to the profit
and loss account in the period in which they arise.
xiv) Profit suspended in compliance with the Prudential Regulations issued by the SBP is recorded on receipt basis.
Profit on rescheduled / restructured financing and investments are recognised as permitted by the SBP.
xv) Remuneration from funds (management fee) is recognized based on the net asset value of the funds calculated on
a daily basis.
6.19 Segment reporting
A segment is a distinguishable component of the Group that is engaged in providing products or services (business
segment) or in providing products or services within a particular economic environment (geographical segment), which
is subject to risks and rewards that are different from those of other segments. The Group's primary format of reporting
is based on business segments. Operating segments are reported in a manner consistent with the internal reporting
provided to the management. Management monitors the operating results of its business segments separately for the
purpose of making decisions about resource allocation and performance assessment.
6.19.1 Business segments

Corporate and Commercial Banking
It includes project finance, export finance, trade finance, Ijarah, guarantees and bills of exchange relating to its
Corporate and Commercial customers, investment banking, syndications, IPO related activities (excluding
investments), secondary private placements, underwriting and securitisation.
Retail Banking
It includes retail financing, deposits and banking services offered to its retail customers and small and medium
enterprises.
Trading and Sales
It includes equity, foreign exchanges, commodities, own securities and placements.
Asset Management
It includes asset management, investment advisory, portfolio management, etc.
Others
It includes functions which cannot be classified in any of the above segments.
6.19.2 Geographical segments
The Group operates only in Pakistan.
6.20 Impairment
The carrying amount of the assets are reviewed at each Consolidated Statement of Financial Position date to determine
whether there is any indication of impairment. If such indication exists, the recoverable amount of the relevant asset is
estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.
Impairment losses are recognised in the consolidated profit and loss account. An impairment loss is reversed if the
reversal can be objectively related to an event occurring after the impairment loss was recognised.
6.21 Earnings per share
The Group presents basic and diluted earnings per share (EPS). Basic EPS is calculated by dividing profit after tax for
the year attributable to share holders of the Holding company by the weighted average number of ordinary shares
outstanding during the year.
Diluted EPS is calculated by dividing the net profit attribuitable to share holders of Holding company (after adjusting for
return - net of tax) on the convertible instruments by the weighted average number of ordinary shares outstanding during the
year plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive
potential ordinary shares into ordinary shares.

Note 2018 2017
7 CASH AND BALANCES WITH TREASURY BANKS Rupees in ‘000
In hand
- local currency 10,755,092 16,244,570
With the State Bank of Pakistan in

- local currency current accounts 7.1 25,130,062 25,011,106
- foreign currency current accounts 7.1 5,305,332 4,100,803
With the National Bank of Pakistan in

- local currency current accounts 21,709,491 16,684,185
65,022,412 64,556,409
7.1 These include local and foreign currency amounts required to be maintained by the Holding comapny with the SBP as
stipulated by the SBP. These accounts are non-remunerative in nature.
Note 2018 2017

8 BALANCES WITH OTHER BANKS
Rupees in ‘000
In Pakistan
- in deposit accounts 3,374 827
Outside Pakistan
- in deposit accounts 8.1 307,001 111,905
8,277,146 4,940,090
8.1 The return on these balances is around 0.85% (2017: 0.58%) per annum.
Note 2018 2017

9 DUE FROM FINANCIAL INSTITUTIONS - NET
Rupees in ‘000
Bai Muajjal:
With Scheduled Banks - Secured 9.1 184,814,600 142,229,221
With other Financial Institution 15,500 15,500
9.2 184,830,100 142,244,721
Musharakah - Secured - 5,000,000
Commodity Murabaha 26,066 26,066
184,856,166 147,270,787
Provision against non-performing amounts due from financial institutions 9.4 (41,566) (41,566)
184,814,600 147,229,221
9.1 The average return on this product is 7.87% (2017: 5.80%) per annum. The balances have maturities ranging between
January 2019 to April 2019 (2017: January 2018 to November 2018). These Bai Muajjal are secured against Federal
Government securities received as collateral and having market value of Rs 179,574 million as at December 31, 2018
(2017: Rs 146,067 million).

2018 2017
Rupees in ‘000
9.2 Bai Muajjal Placements 191,381,750 150,162,125

Less: Deferred Income (1,137,552) (3,440,686)
Profit Receivable shown in other assets (5,414,098) (4,476,718)
Bai Muajjal Placement 184,830,100 142,244,721
9.3 Particulars of due from financial institutions

184,814,600 147,229,221
2018 2017
due from financial held due from financial held
institutions institutions
9.4 Category of classification Rupees in ‘000
Loss 41,566 41,566 41,566 41,566

41,566 41,566 41,566 41,566
10 INVESTMENTS - NET
10.1 Investments by types
Note 2018 2017

Rupees in ‘000
- Federal Government Securities 10.5.1 61,420,405 - (271,470) 61,148,935 56,895,331 - 256,195 57,151,526
- Shares (including units of fund) 10.5.2 & 10.5.3 5,981,168 1,104,210 277,249 5,154,207 5,267,798 785,762 858,330 5,340,366
- Non Government Sukuk 10.5.4 21,249,032 172,935 - 21,076,097 21,913,479 183,982 - 21,729,497
- Foreign Securities 10.5.5 7,576,263 - (110,446) 7,465,817 5,036,688 - 22,358 5,059,046
96,226,868 1,277,145 (104,667) 94,845,056 89,113,296 969,744 1,136,883 89,280,435
Held to maturity securities
- Federal Government Securities 10.6.1 28,000,000 - - 28,000,000 28,000,000 - - 28,000,000
- Non Government Sukuk 10.6.2 74,307 - - 74,307 - - - -
28,074,307 - - 28,074,307 28,000,000 - - 28,000,000
Held for trading securities

- Non Government Sukuk - - - - 102,474 - (1,708) 100,766
Associates (listed)
- Units of funds 10.7 4,196,013 - - 4,196,013 5,779,700 - - 5,779,700

10.2 Investments by segments

Note 2018 2017
Rupees in ‘000
Federal Government Securities
- Sukuk 10.5.1 & 10.6.1 46,986,693 - (271,470) 46,715,223 84,895,331 - 256,195 85,151,526
- Bai Muajjal with Government of
Pakistan (through State Bank of Pakistan) 10.5.1 42,433,712 - - 42,433,712 - - - -
89,420,405 - (271,470) 89,148,935 84,895,331 - 256,195 85,151,526
Shares
Listed Companies 10.5.2 5,080,386 1,008,968 275,766 4,347,184 4,367,016 698,328 857,391 4,526,079
Units of funds 10.5.2 50,000 - 1,483 51,483 50,000 - 939 50,939
Unlisted Companies 10.5.3 850,782 95,242 - 755,540 850,782 87,434 - 763,348
5,981,168 1,104,210 277,249 5,154,207 5,267,798 785,762 858,330 5,340,366
Non Government Sukuk
Listed 10.5.4 21,249,032 172,935 - 21,076,097 21,913,479 183,982 - 21,729,497
Unlisted 10.6.2 74,307 - - 74,307 102,474 - (1,708) 100,766
21,323,339 172,935 - 21,150,404 22,015,953 183,982 (1,708) 21,830,263
Foreign Securities
Government Sukuk 10.5.5 4,788,337 - (61,003) 4,727,334 3,376,124 - 47,078 3,423,202
Non Government Sukuk 10.5.5 2,777,537 - (49,443) 2,728,094 1,657,222 - (24,720) 1,632,502
Shares 10.5.5 10,389 - - 10,389 3,342 - - 3,342
7,576,263 - (110,446) 7,465,817 5,036,688 - 22,358 5,059,046
Associates
Al Meezan Mutual Fund Limited 10.7 1,135,372 - - 1,135,372 1,259,594 - - 1,259,594
Meezan Islamic Fund 10.7 1,239,256 - - 1,239,256 1,441,241 - - 1,441,241
Meezan Balanced Fund 10.7 284,938 - - 284,938 300,966 - - 300,966
Meezan Tahaffuz Pension - Gold sub-fund 10.7 34,059 - - 34,059 28,152 - - 28,152
Meezan Tahaffuz Pension - Equity sub-fund 10.7 112,431 - - 112,431 126,530 - - 126,530
KSE Meezan Index Fund 10.7 462,754 - - 462,754 417,255 - - 417,255
Meezan Islamic Income Fund 10.7 315,642 - - 315,642 1,029,738 - - 1,029,738
Meezan Rozana Amdani Fund 10.7 300,353 - - 300,353 - - - -
Meezan Cash Fund 10.7 52 - - 52 530,206 - - 530,206
Meezan Gold Fund 10.7 64,150 - - 64,150 52,270 - - 52,270
Meezan Energy Fund 10.7 161,205 - - 161,205 336,118 - - 336,118
Meezan Strategic Allocation Fund - MSAP II 10.7 78,944 - - 78,944 85,163 - - 85,163
Meezan Financial Planning Fund of
Funds - Conservative 10.7 6,857 - - 6,857 6,790 - - 6,790
Meezan Financial Planning
Fund of Funds - MAAP II 10.7 - - - - 27,117 - - 27,117
Meezan Financial Planning Fund of
Funds - MAAP III 10.7 - - - - 138,560 - - 138,560
4,196,013 - - 4,196,013 5,779,700 - - 5,779,700
128,497,188 1,277,145 (104,667) 127,115,376 122,995,470 969,744 1,135,175 123,160,901
2018 2017
10.3 Provision against diminution in value of investments Rupees in ‘000
Charge / (reversals) for the year

On available for sale securities
- charge for the year 505,484 605,434
- reversals for the year upon recovery on debt instruments (11,047) -
- reversals on disposals (187,036) (18,702)
307,401 586,732
Closing balance 1,277,145 969,744

10.4 Particulars of provision against Sukuk
2018 2017

Investment held Investment held
Rupees in ‘000
Loss 172,935 172,935 183,982 183,982
172,935 172,935 183,982 183,982
10.5 Quality of Available for Sale Securities
Details regarding quality of Available for Sale (AFS) securities are as follows:
Cost
2018 2017
Rupees in ‘000
GoP Ijarah Sukuk - GIS-16 - 40,052,437

GoP Ijarah Sukuk - GISF-2 89,889 89,843
Bai Muajjal with Government of Pakistan
(through State Bank of Pakistan) 42,433,712 -
61,420,405 56,895,331
10.5.2 Shares and units of funds - Listed
Automobile Assembler 183,786 91,345

Construction and materials (cement) 1,144,900 1,135,048
Power Generation & Distribution 224,084 251,576
Refinery - 82,060
Oil and gas marketing 613,808 509,098
Oil & Gas Exploration Companies 1,051,875 709,050
Fertilizers 568,756 525,736
Chemicals 236,346 100,258
Pharmaceuticals 358,048 225,074
Mudarabas 66,390 66,390
Technology & Communication 51,889 3,229
Paper & Board 306,866 280,946
Textile (Composite) 45,328 3,521
Glass & Ceramics 24,931 -
Vanaspati & Allied Industries 36,207 -
Food & Personal Care Products 4,701 45,861
Cable & Electrical Goods - 174,808
Engineering 162,471 162,993
Units of open end funds 50,000 50,000
Miscellaneous - 23
5,130,386 4,417,016


2018 2017 2018 2017
10.5.3 Unlisted Companies
Fatima Energy Limited 250,553 250,553 9.40 9.70

Sapphire Electric Company Limited 318,864 318,864 29.10 23.70
Daewoo Pakistan Express Bus Service Limited 253,240 253,240 58.70 50.40
Pak Kuwait Takaful Company Limited 28,125 28,125 0.60 0.60
850,782 850,782
10.5.4 Non Government Sukuk - Unlisted Cost

2018 2017
Rupees in ‘000
Credit Ratings
- AAA / AAA 10,128,470 8,547,204
- AA / AA+, AA, AA- 3,428,333 11,790,000
- A / A+, A, A- 7,519,294 1,392,293
- Unrated 172,935 183,982
21,249,032 21,913,479
2018 2017
Cost Rating Cost Rating
10.5.5 Foreign Securities - Government Sukuk Rupees Rupees
in ‘000 in ‘000
Hong Kong 694,270 AA+ 552,010 AA+

Saudi Arabia 1,267,122 A2 572,921 A2
Qatar 701,777 A+ / AA3 559,513 A+ / AA3
Luxembourg 39,709 AAA 33,063 AAA
Indonesia 2,085,459 BAA2 1,658,617 BAA3
4,788,337 3,376,124
Non Government Sukuk - Unlisted Cost

2018 2017
Rupees in ‘000
Credit Ratings
- AA+, AA, AA- 2,085,012 1,107,334
- A+, A, A- 692,525 549,888
2,777,537 1,657,222
Equity securities - Unlisted
S.W.I.F.T. SCRL 10,389 3,342

Cost
2018 2017
Rupees in ‘000
10.6 Particulars relating to Held to Maturity securities are as follows:
The market value of securities classified as held to maturity as at December 31, 2018 amounted to
Rs 27,910 million (December 31, 2017: Rs 28,207 million).
10.6.2 Non Government Sukuk - Listed
Fatima Fertilizer Company Limited 74,307 102,474
The market value of securities classified as held to maturity as at December 31, 2018 amounted to
Rs 74.190 million (December 31, 2017: Rs 100.765 million).

262
10.7 Associates accounted for under the equity method of accounting
Meezan Meezan Meezan Meezan

Meezan Meezan Meezan
KSE Meezan Financial Financial Financial Financial
Al Meezan Meezan Meezan Tahaffuz Tahaffuz Meezan Meezan Meezan Meezan Meezan Strategic
Meezan Islamic Planning Planning Planning Planning
Mutual Islamic Balanced Pension Pension Sovereign Rozana Cash Gold Energy Allocation Total
Index Income Fund of Fund of Fund of Fund of
MEEZAN BANK LIMITED

Fund Fund Fund Gold Sub Equity Fund Aamdani Fund Fund Fund Fund -
Fund Fund Funds - Funds - Funds - Funds -
Fund Sub Fund Fund MSAP II
Conservative MCPP II MAAP II MAAP III
Rupees in ‘000
Opening balance - January 1, 2017 1,293,932 1,490,515 360,263 26,430 159,162 538,506 770,231 1,136,229 - - 83,455 216,080 100,620 6,962 222,993 32,609 167,460 6,605,447
Investment / (redemption) during the year 341,816 496,501 800 - - 39,432 267,316 (999,292) - 530,000 (35,545) 156,498 - 24 (200,000) 834 3,660 602,044
Share of profit / (loss) in associates - P&L (244,600) (388,338) (29,839) 1,722 (32,632) (93,732) (7,809) (77,556) - 206 4,360 (23,459) (15,457) 5,827 (22,993) (6,326) (32,560) (963,186)
Share of loss in associates - OCI (61,509) (39,460) (5,583) - - - - - - - - - - - - - - (106,552)
Dividend received (70,045) (117,977) (24,675) - - (66,951) - (59,381) - - - (13,001) - (6,023) - - - (358,053)
Closing balance - December 31, 2017 1,259,594 1,441,241 300,966 28,152 126,530 417,255 1,029,738 - - 530,206 52,270 336,118 85,163 6,790 - 27,117 138,560 5,779,700
Investment / (redemption) during the year 30,000 (67,258) - - - 106,600 (737,571) - 300,353 (530,000) - (148,517) - - - (31,658) (162,516) (1,240,567)
Share of profit / (loss) in associates - P&L (137,488) (125,084) (14,985) 5,907 (14,099) (61,101) 40,831 - 313 (154) 11,880 (26,396) (6,219) 67 - 4,541 23,956 (298,031)
Share of loss in associates - OCI (16,734) (9,643) (1,043) - - - - - - - - - - - - - - (27,420)
Dividend received - - - - - - (17,356) - (313) - - - - - - - - (17,669)
Closing balance - December 31, 2018 1,135,372 1,239,256 284,938 34,059 112,431 462,754 315,642 - 300,353 52 64,150 161,205 78,944 6,857 - - - 4,196,013
Note 2018 2017

11 ISLAMIC FINANCING AND RELATED ASSETS
Rupees in ‘000
In Pakistan
Murabaha financing and related assets
- Murabaha financing 11.1 8,021,609 7,854,995
- Advances against Murabaha 7,657,780 6,487,946
- Murabaha inventory 3,818,550 4,573,868
- Financing under Islamic Export Refinance - Murabaha 11.2 344,573 599,862
- Advance against Islamic Export Refinance - Murabaha 130,491 236,121
19,973,003 19,752,792
Running Musharakah financing
- Running Musharakah financing 142,433,085 132,032,737
- Financing under Islamic Export Refinance - Running Musharakah 16,430,165 13,882,800
158,863,250 145,915,537
Istisna financing and related assets
- Istisna financing 3,440,669 2,432,621
- Advances against Istisna 56,972,563 44,548,652
- Istisna inventory 8,069,320 3,352,093
- Financing under Islamic Export Refinance - Istisna 74,732 170,111
- Advances under Islamic Export Refinance - Istisna 4,388,971 5,489,701
- Inventory under Islamic Export Refinance - Istisna 508,535 1,076,361
73,454,790 57,069,539
Tijarah financing and related assets
- Tijarah financing 394,041 498,305
- Tijarah inventory 12,371,614 7,213,736
- Financing under Islamic Export Refinance - Tijarah 364,949 254,802
- Inventory under Islamic Export Refinance - Tijarah 271,085 217,500
13,401,689 8,184,343
Musawammah financing and related assets
- Musawammah financing 11.3 12,450,345 6,468,792
- Musawammah Inventory 9,890,657 5,272,054
- Advances against Musawammah 16,505,491 7,523,238
- Financing under Islamic Export Refinance - Musawammah 11.4 875,001 95,308
- Advances under Islamic Export Refinance - Musawammah 124,950 111,350
39,846,444 19,470,742
Salam Financing and related assets
- Salam Financing 590,001 464,337
- Salam Inventory 1,659,072 77,200
- Advances against Salam 7,281,394 3,595,916
9,530,467 4,137,453
Financing against bills
- Financing against bills - Salam 5,725,100 11,834,926
- Advance against bills - Salam 1,738 1,738
5,726,838 11,836,664
Bai Muajjal financing 11.5 569,632 605,703
Ijarah financing and related assets

- Net investment in Ijarah 116,259 124,058
- Net book value of assets/investment in Ijarah under IFAS-2 46,836,155 31,019,341
11.6 46,952,414 31,143,399
- Advances against Ijarah 6,253,140 5,389,253
53,205,554 36,532,652
Diminishing Musharakah financing and related assets
- Diminishing Musharakah financing - housing 14,150,878 11,991,953
- Diminishing Musharakah financing - others 74,800,828 65,438,474
- Advances against Diminishing Musharakah 8,490,933 7,125,407
- Advances against Diminishing Musharakah under SBP's ILTFF 490,628 -
97,933,267 84,555,834
Musharakah financing 414,800 580,720
Wakalah Tul Istithmar financing 40,825,200 31,250,000
Wakalah financing 475,000 -
Advance against Service Ijarah 2,000,000 3,000,000
Labbaik (Qard for Hajj and Umrah) 5,153 3,382
Staff financing 11.7 3,712,540 3,226,026
Other financing 2,326,136 2,612,204
Gross Islamic Financing and Related Assets 11.8 522,263,763 428,733,591
Less: Provision against non-performing Islamic
financing and related assets - Specific 11.10 (6,771,530) (6,426,731)
Less: Provision against non-performing Islamic
financing and related assets - General 11.10 (2,927,711) (2,377,711)
Islamic financing and related assets - net of provision 512,564,522 419,929,149

Note 2018 2017

Rupees in ‘000
11.1 Murabaha receivable - gross 11.1.1 8,434,743 8,222,190
Less: Deferred murabaha income 11.1.3 (142,250) (110,813)
Murabaha financing 8,021,609 7,854,995
11.1.1 Murabaha Sale Price 8,434,743 8,222,190

Murabaha Purchase Price (8,021,609) (7,854,995)
413,134 367,195
11.1.2 The movement in Murabaha financing

during the year is as follows:
Sales during the year 47,580,002 45,081,030
Adjusted during the year (47,413,388) (45,012,972)
11.1.3 Deferred murabaha income

Arising during the year 1,218,659 1,049,935
Recognised during the year (1,187,222) (1,058,464)
11.2 Financing under Islamic Export Refinance - Murabaha - gross 353,984 613,210
Financing under Islamic Export Refinance - Murabaha 344,573 599,862
11.2.1 The movement in Islamic Export Refinance

Murabaha financing during the year is as follows:

Sales during the year 684,949 1,045,436
Adjusted during the year (940,238) (1,169,530)
11.2.2 Deferred Islamic Export Refinance murabaha income

Arising during the year 9,507 10,432
Recognised during the year (9,630) (13,200)

2018 2017
Rupees in ‘000
11.3 Musawammah financing - gross 12,998,576 6,688,479
Musawammah financing 12,450,345 6,468,792
11.4 Financing under Islamic Export Refinance - Musawammah - gross 885,568 96,526
Less: Deferred income (4,387) (604)
Profit receivable shown in other assets (6,180) (614)
Financing under Islamic Export Refinance - Musawammah 875,001 95,308
11.5 Bai Muajjal financing - gross 615,345 673,153

Bai Muajjal financing 569,632 605,703
11.6 Net book value of assets / investments in Ijarah under IFAS 2 is net of depreciation of Rs 25,267 million (2017: Rs 16,248 million).
11.7 This includes Rs 484 million (2017: Rs 434 million) representing profit up free financing to staff advanced under the
Holding company's Human Resource Policies.
11.8 Particulars of financing - gross 2018 2017

Rupees in ‘000
In
- local currency 513,035,591 416,237,399
522,263,763 428,733,591
11.9 Islamic financing and related assets include Rs 6,985 million (2017: Rs 6,606 million) which have been placed under
non-performing status as detailed below:
2018 2017
Non Provision Non Provision
Performing Held Performing Held
Amount Amount
Rupees in ‘000
Domestic
Other Assets Especially Mentioned 28,157 - 10,845 -
Substandard 137,429 30,927 176,553 40,636
Doubtful 49,514 8,523 16,588 6,068
Loss 6,770,142 6,732,080 6,402,143 6,380,027
6,985,242 6,771,530 6,606,129 6,426,731

11.10 Particulars of provision against non-performing Islamic financing and related assets:
2018 2017
Rupees in ‘000
Opening balance 6,426,731 2,377,711 8,804,442 6,592,203 1,494,391 8,086,594

Charge for the year 552,977 550,000 1,102,977 116,422 883,320 999,742
Less: Reversals (208,111) - (208,111) (279,553) - (279,553)
344,866 550,000 894,866 (163,131) 883,320 720,189
Amount Written off (67) - (67) (2,341) - (2,341)
Closing balance 6,771,530 2,927,711 9,699,241 6,426,731 2,377,711 8,804,442
11.10.1 The Group maintains general reserve (provision) in accordance with the applicable requirements of the Prudential Regulations
for Consumer Financing issued by the SBP.
In addition, the Group has also maintained a general provision of Rs 2,525 million (2017: Rs 1,975 million) against financing
made on prudent basis, in view of prevailing economic conditions. This general provision is in addition to the requirements of
'Prudential Regulations'.
11.10.2 In accordance with BSD Circular No. 2 dated January 27, 2009 issued by the SBP, the Group has availed the benefit of Forced
Sales Value (FSV) of collaterals against the non-performing financing. The accumulated benefit availed as at December 31,
2018 amounts to Rs 17.9 million (2017: Rs 8.3 million). The additional profit arising from availing the FSV benefit - net of tax
amounts to Rs 11.6 million as at December 31, 2018 (2017: Rs 5.4 million). The increase in profit, due to availing of the benefit,
is not available for distribution of cash and stock dividend to share holders of the Holding company.
11.10.3 Particulars of provision against non-performing financing:
2018 2017
Rupees in ‘000
In local currency 6,515,997 2,927,711 9,443,708 6,184,124 2,377,711 8,561,835

In foreign currencies 255,533 - 255,533 242,607 - 242,607
6,771,530 2,927,711 9,699,241 6,426,731 2,377,711 8,804,442
Note 2018 2017

Rupees in ‘000
11.11 Particulars of write offs
Against provisions 11.10 67 2,341

Directly charged to profit and loss account - -
67 2,341
Write offs Rs 500,000 and above - Domestic - 2,212

Write offs below Rs 500,000 - Domestic 67 129
67 2,341
11.11.1 Details of financing written off of Rs 500,000 and above
In term of sub-section (3) of section 33A of the Banking Companies Ordinance, 1962, the Consolidated Statement in respect
of written off financing or any other financial relief of five hundred thousand rupees or above allowed to any person during
the year ended December 31, 2018 is given as Annexure - 1.

Note 2018 2017

12 FIXED ASSETS
Rupees in ‘000
Capital work-in-progress 12.1 1,644,436 530,109

Property and equipment 12.2 11,583,962 10,934,864
13,228,398 11,464,973
12.1 Capital work-in-progress
Advances to suppliers and contractors for:

- civil works 1,009,074 237,106
- computer hardware 174,250 64,005
- purchase of Vehicles 152,864 153,158
- office machines 263,986 73,984
- furniture and fixtures 44,262 1,856
1,644,436 530,109
12.2 Property and equipment

2018
land computer
equipments
Rupees in ‘000
At January 1, 2018
Cost 4,306,133 1,363,692 5,649,484 687,405 4,673,479 1,296,397 17,976,590

Net book value 4,306,133 922,080 3,353,494 315,070 1,315,573 722,514 10,934,864
Additions 271,880 151,180 254,184 51,484 861,881 684,114 2,274,723
Net book value of disposals - - (1,062) (282) (3,108) (58,202) (62,654)
Cost 4,578,013 1,514,872 5,893,257 735,418 5,475,767 1,722,479 19,919,806


2017
land computer
equipments
Rupees in ‘000
At January 1, 2017
Cost 1,719,600 1,330,757 5,005,849 607,718 4,286,270 1,142,028 14,092,222

Net book value 1,719,600 960,468 3,175,877 290,271 1,496,959 645,819 8,288,994
Additions 2,586,533 26,992 686,260 84,102 499,798 338,942 4,222,627
Other adjustments / transfers - (3,808) (13,252) 1,868 (64) 17,295 2,039
Net book value of disposals - - (10,775) (2,506) (5,069) (49,467) (67,817)

Cost / Revalued amount 4,306,133 1,363,692 5,649,484 687,405 4,673,479 1,296,397 17,976,590
12.2.1 Included in cost of property and equipment are fully depreciated items still in use aggregating Rs 3,266 million
(2017: Rs 2,534 million).
12.2.2 During the current year, the Holding company has revised its estimate of the useful lives of "Computer Equipments".
Previously, computer equipments were depreciated over period of 3 to 5 years and now these are being depreciated over 5
years. The revision takes into account the expected pattern of economic benefits associated with the use of computer
equipments and has been accounted for as a change in accounting estimate in accordance with the requirements of
International Accounting Standard (IAS) 8 ‘Accounting policies, changes in accounting estimates and errors’. Had the
revision in useful lives of computer equipments not been made, the related depreciation expense for the year would have
been higher by Rs130.829 million and consequently consolidated profit before tax would have been lower by the same
amount.
12.2.3 The Group has not carried out any revaluation of property and equipment at the recent date as the Group uses cost model for
measurement of its property and equipment.

12.2.4 Details of disposal of fixed assets to related parties or other persons having net book value of Rs 500,000 or above are as
follows:
Description Cost Accumulated Net book Sale Mode of Particulars of purchaser

depreciation value proceeds disposal
Rupees in ‘000
Vehicles
Honda Civic 2,358 1,730 628 1,260 MBL Staff Policy Mr. Muhammad Raza Sayeed (Ex-employee)
Honda Civic 2,358 1,493 865 1,322 MBL Staff Policy Mr. Rahim Bux Memon (Executive, Ex-employee)
Honda Civic 2,355 1,688 667 1,256 MBL Staff Policy Syed Salman Ahmed (Executive, Employee)
Toyota Corolla 1,788 835 953 1,192 MBL Staff Policy Mr. Kaleem Ahmed Riaz (Executive, Ex-employee)
Toyota Corolla 1,753 1,169 584 1,006 MBL Staff Policy Mr. Urooj Ul Hasan Khan (Executive, Employee)
Toyota Corolla 1,753 1,110 643 982 MBL Staff Policy Mr. Wise Ur Rehman (Executive, Employee)
Honda City 1,670 1,030 640 955 MBL Staff Policy Mr. Tariq Mehraj (Executive, Employee)
Honda City 1,651 770 881 1,183 MBL Staff Policy Mr. Kasim Najeebullah (Executive, Ex-employee)
Honda City 1,502 926 576 895 MBL Staff Policy Mr. Muhammad Saleem (Executive, Ex-employee)
Suzuki Swift 1,074 483 591 768 MBL Staff Policy Mr. Muhammad Bilal (Executive, Employee)
Toyota Fortuner 5,415 5,054 361 361 MBL Staff Policy Mr. Irfan Siddiqui (President & Chief Executive Officer)
Toyota Fortuner 5,410 5,410 - 1,623 MBL Staff Policy Mr. Ariful Islam (Deputy Chief Executive Officer)
Honda Civic 2,493 582 1,911 2,231 Negotiation Mr. Naheed Arshad Butt
Toyota Corolla 1,788 805 983 1,617 Negotiation Mr. Rizwan Mazhar
Toyota Corolla 2,000 1,367 633 633 AMIML Staff Policy Mr. Abdul Rab Khan (Executive, Employee)
Toyota Corolla 2,000 1,200 800 800 AMIML Staff Policy Mr. Talha Anwer (Executive, Employee)
Toyota Corolla 2,000 1,200 800 1,859 AMIML - Negotiation Mr. Maaz Saleem
Honda City 1,507 879 628 1,080 Negotiation Mr. Amir Azeem
Honda City 1,675 391 1,284 1,598 Negotiation Mr. Maaz Saleem
Suzuki Cultus 1,250 208 1,042 1,122 Negotiation Mr. Arif Iftikhar
Suzuki Cultus 1,104 386 718 958 Negotiation Mr. Mohsin Imtiaz
Suzuki Cultus 1,096 566 530 970 AMIML - Negotiation Mr. Rizwan Khan
Suzuki Cultus 1,129 433 696 1,084 AMIML - Negotiation Mr. Zahid Qadri
Suzuki Cultus 1,129 282 847 1,075 AMIML - Negotiation M/s Etihad Motors
Suzuki Cultus 1,129 282 847 1,075 AMIML - Negotiation M/s Etihad Motors
Suzuki Cultus 1,099 330 769 960 Negotiation Mr. Wasim Mirza
Suzuki Cultus 1,074 447 627 941 Negotiation Mr. Sultan Hasan Khan
Suzuki Cultus 1,074 519 555 932 Negotiation Mr. Muhammad Zaman
Suzuki Cultus 1,039 485 554 857 Negotiation Mr. Abid Rashid Chaudary
Suzuki Cultus 1,017 475 542 833 Negotiation Mr. Khurram Imtiaz
Suzuki Cultus 1,014 507 507 850 Negotiation Ms. Riffat Jabeen
Suzuki Cultus 1,014 507 507 836 Negotiation Mr. Zeeshan Jamil
Suzuki Cultus 1,012 506 506 731 Negotiation Mr. Naheed Arshad Butt
Suzuki Cultus 1,012 455 557 843 Negotiation Mr. Abrar Hussain
Suzuki Cultus 1,250 292 958 1,065 Negotiation Mr. Imran Subhani
Suzuki Cultus 1,104 442 662 921 Negotiation Mr. Naveed Hussain
Suzuki Cultus 1,099 256 843 831 Negotiation Syed Raza Naqvi
Suzuki Cultus 1,039 502 537 831 Negotiation Mr. Sadaqat Zia Jafri
Suzuki Wagon R 977 456 521 966 Negotiation Mr. Faheem Khan
Toyota Corolla 1,806 452 1,354 1,626 Takaful Claim M/s EFU General Insurance Limited
Honda City 1,520 811 709 1,243 Takaful Claim M/s EFU General Insurance Limited
Suzuki Cultus 1,250 250 1,000 1,125 Takaful Claim M/s EFU General Insurance Limited
Suzuki Cultus 1,129 339 790 1,016 Takaful Claim M/s Adamjee Insurance Company Limited
78,257 41,876 36,381 53,394
Other disposals
Vehicles 179,775 157,953 21,822 83,617
Electrical, office and

computer equipments 59,592 56,485 3,107 10,299
Furniture and Fixtures 3,471 3,189 282 597
Leasehold improvements 10,411 9,349 1,062 528
331,506 268,852 62,654 148,435

Note 2018 2017
Rupees in ‘000
13 INTANGIBLE ASSETS
Computer Software 13.1 572,552 496,835

Advance against computer software 72,404 32,778
644,956 529,613
13.1 At January 1,
Cost 1,423,012 1,150,670
Accumulated amortisation 926,177 722,386

Opening net book value 496,835 428,284
Additions - directly purchased 305,885 248,098
Amortisation charge (230,168) (177,508)
Other adjustments - (2,039)
Closing net book value 572,552 496,835

Cost 1,728,898 1,423,012
Accumulated amortisation 1,156,346 926,177
Rate of amortisation (percentage) 10-20 10-20
Useful life 5 - 10 years 5 - 10 years
13.1.1 Included in cost of intangible assets are fully amortised items still in use aggregating Rs 575 million (2017: Rs 422 million).
14 DEFERRED TAX ASSET / (LIABILITIES) 2018

Loss 31, 2018
Rupees in ‘000
Surplus on revaluation of non-banking assets acquired in satisfaction of claims - - (11,928) (11,928)
Tax on accumulated profit of associates (288,914) 106,513 (49,902) (232,303)
(783,916) 195,319 (61,830) (650,427)
Deficit on revaluation of available for sale investments (419,953) 22,043 434,542 36,632
Provision against Workers Welfare Fund 21,061 5,263 - 26,324
Provision against non-banking assets acquired in satisfaction of claims and other assets 89,855 (3,137) - 86,718
Others 14,834 23,377 - 38,211
553,129 530,780 434,542 1,518,451
(230,787) 726,099 372,712 868,024
2017
Loss 31, 2017
Rupees in ‘000
Surplus on revaluation of available for sale investments (1,251,679) (71,945) 903,671 (419,953)
Tax on accumulated profit on associates (530,837) 241,923 - (288,914)
Others (67,416) 67,416 - -
(2,481,933) 374,393 903,671 (1,203,869)
Provision against Workers Welfare Fund 29,241 (8,180) - 21,061
Provision against non-banking assets acquired in satisfaction of claims and other assets 18,587 71,268 - 89,855
Others - 14,834 - 14,834
526,730 446,352 - 973,082
(1,955,203) 820,745 903,671 (230,787)

Note 2018 2017

Rupees in ‘000
15 OTHER ASSETS
Profit / return accrued in local currency - net of provisions 13,851,168 10,686,197

Profit / return accrued in foreign currencies - net of provisions 63,744 35,639
Advances, deposits, advance rent and other prepayments 15.1 2,327,894 1,603,846
Non-banking assets acquired in satisfaction of claims 15.3 240,607 246,201
Unrealised gain on forward foreign exchange contracts - net 15.2 1,335,392 1,063,795
Acceptances 10,634,901 7,144,255
Dividends receivable 262 21,836
Stamps 13,037 10,815
Security deposits 126,823 104,889
Others 819,595 604,766
29,413,423 21,522,239
Provision against other assets 15.4.1 (231,530) (256,462)
Other Assets (Net of Provision) 29,181,893 21,265,777
Surplus on revaluation of non-banking assets acquired in
satisfaction of claims 23 34,080 -
Other Assets - total 29,215,973 21,265,777
15.1 This includes prepaid rent and prepaid takaful aggregating Rs 561 million (2017: Rs 473 million) and Rs 959 million
(2017: Rs 679 million) respectively which are being amortised over a period of one year.
15.2 This is net off loss on forward foreign exchange contracts of Rs 1,132 million (2017: Rs 1,529 million).
2018 2017
Rupees in ‘000
15.3 Market value of Non-banking assets acquired in satisfaction of claims 264,688 224,118
Market value of the non-banking assets acquired in satisfaction of claims has been carried out by an independent valuer, M/s
Joseph Lobo (Private) Limited based on prevailing market values determined through independent market inquiries from local
active realtors and adjusted for the physical condition of the property as more detailed in note 41.4.
15.3.1 Non-banking assets acquired in satisfaction of claims 2018 2017

Rupees in ‘000
Opening Balance 246,201 284,255

Depreciation (5,594) (7,302)
Transfer to fixed assets - (30,752)
Closing Balance 240,607 246,201
15.4 Provision held against other assets 2018 2017

Rupees in ‘000
Non-banking assets acquired in satisfaction of claims 10,000 22,084

Acceptances 35,451 35,451
Others 186,079 198,927
231,530 256,462

Note 2018 2017

15.4.1 Provision against other assets Rupees in ‘000

Reversals during the year (27,349) (48,726)
Amount adjusted / written off - (11,251)
16 BILLS PAYABLE
In Pakistan 23,750,543 17,175,035

23,750,543 17,175,035
17 DUE TO FINANCIAL INSTITUTIONS
In Pakistan 36,407,811 36,813,295

36,407,811 36,813,295
17.1 Details of due to financial institutions secured / unsecured
Secured
Musharakah from the State Bank of Pakistan
under Islamic Export Refinance Scheme 17.1.1 22,737,094 21,141,464
Investment from the State Bank of Pakistan
under Islamic Long Term Financing Facility 17.1.2 433,990 -
Other financial institution 17.1.3 627,075 329,008
Unsecured
Overdrawn nostro accounts 409,652 492,823
Other Musharakah 17.1.4 12,200,000 14,850,000
36,407,811 36,813,295
17.1.1 These Musharakah are on a profit and loss sharing basis maturing between January 2019 to June 2019 and are secured
against demand promissory notes executed in favor of SBP. A limit of Rs 33,422 million (December 31, 2017: Rs 25,700
million) has been allocated to the Holding company by SBP under Islamic Export Refinance Scheme.
17.1.2 These Investment are on Profit Loss sharing basis which has been invested in general pool of the Holding company. A limit
of Rs 11,720 million (2017: Nil) has been allocated to the Holding company by SBP under Islamic Long Term Financing
Facility.
17.1.3 These Musharakah are on Profit Loss sharing basis. A limit of USD 10 million has been allocated to the Holding company
under the agreement with Karandaaz.
17.1.4 These Musharakah are on profit and loss sharing basis. The expected average return on these Musharakah is around 9.54%
(2017: 5.95%) per annum. These balances are maturing in January 2019 (2017: January 2018).

2018 2017
17.2 Particulars of due to financial institutions with respect to currencies Rupees in ‘000

36,407,811 36,813,295
17.3 Particulars of due to financial institutions
Short - term 35,346,747 36,484,287

Long - term 1,061,064 329,008
36,407,811 36,813,295
18 DEPOSITS AND OTHER ACCOUNTS

2018 2017
In Local In Foreign Total In Local In Foreign Total
currency currencies currency currencies
Rupees in ‘000
Customers
- Current accounts - non-remunerative 267,855,629 15,590,028 283,445,657 217,203,530 12,821,821 230,025,351

- Savings deposits 255,706,358 23,494,221 279,200,579 240,454,616 17,966,537 258,421,153
- Fixed deposits 197,008,707 10,109,048 207,117,755 161,145,052 6,836,065 167,981,117
- Margin 5,335,289 41,896 5,377,185 5,501,348 12,002 5,513,350
725,905,983 49,235,193 775,141,176 624,304,546 37,636,425 661,940,971
Financial institutions
- Current accounts - non-remunerative 597,730 - 597,730 369,336 - 369,336

- Savings deposits 4,574,956 - 4,574,956 3,205,910 - 3,205,910
- Fixed deposits 5,130,730 - 5,130,730 1,657,151 - 1,657,151
10,303,416 - 10,303,416 5,232,397 - 5,232,397
736,209,399 49,235,193 785,444,592 629,536,943 37,636,425 667,173,368
2018 2017
Rupees in ‘000
18.1 Composition of deposits
- Individuals 521,789,397 461,565,965

- Government (Federal and Provincial) 14,958,796 8,321,634
- Public Sector Entities 15,385,523 15,984,632
- Banking Companies 67,656 241,743
- Non-Banking Financial Institutions 10,235,759 5,017,445
- Private Sector 223,007,461 176,041,949
785,444,592 667,173,368
18.2 Particulars of deposits and other accounts in Pakistan
In
- local currency
736,209,399 629,536,943
- foreign currencies
49,235,193 37,636,425
785,444,592 667,173,368
18.3 Eligible deposits covered under deposit protection scheme (including call deposit receipts disclosed under bills payable) amount to
Rs 628,119 million (2017: Rs 542,230 million).

Note 2018 2017

Rupees in ‘000
19 SUB-ORDINATED SUKUK
Additional Tier I Sukuk 19.1 7,000,000 -

Tier II Sukuk 19.2 7,000,000 7,000,000
14,000,000 7,000,000
19.1 In August 2018, the Holding company issued regulatory Shariah compliant unsecured, subordinated 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 Addtional Tier I sukuk is as follows:
Credit Rating AA- (Double A minus) by JCR-VIS Credit Rating Company Limited.
Issue Date August 01, 2018
Tenor Perpetual
Profit payment frequency Monthly in arrears
Redemption Perpetual
(Mudaraba Profit Amount) monthly weightages announced by the Holding company under the SBP guidelines of pool
Call Option The Holding company may call Additional Tier I Sukuk with prior approval of SBP on or after
five years from the date of issue.
Loss Absorbency The Additional Tier I Sukuk, at the option of the SBP, will be fully and permanently converted
into common shares 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.
Lock-in-Clause Profit and / or redemption amount can be held back in respect of the Additional Tier I Sukuk,
if such payment will result in a shortfall in the Holding company’s minimum capital or capital
adequacy ratio requirement.
19.2 In September 2016, the Holding company issued regulatory Shariah compliant unsecured, subordinated privately placed Tier II 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 Tier II sukuk is as follows:
Credit Rating AA (Double A) by JCR-VIS Credit Rating Company Limited.

Issue Date September 22, 2016
Tenor 10 years from the issue date.
Profit payment frequency Semi-annually in arrears
Redemption Bullet payment at the end of the tenth year.
(Mudaraba Profit Amount) monthly weightages announced by the Holding company under the SBP guidelines of pool
Call Option The Holding company may call Tier II Sukuk with prior approval of SBP on or after five years
from the date of issue.
Loss Absorbency The Tier II Sukuk, at the option of the SBP, will be fully and permanently converted into
common shares upon the occurrence of a point of non-viability trigger event as determined
Lock-in-Clause Profit and / or redemption amount can be held back in respect of the Tier II Sukuk, if such
payment will result in a shortfall in the Holding company’s minimum capital or capital
adequacy ratio requirement.

Note 2018 2017

20 OTHER LIABILITIES
Rupees in ‘000
Return on deposits and other dues
- payable in local currency 20.1 3,388,288 2,268,390
- payable in foreign currencies 75,272 42,913
Unearned income 32,521 22,146
Accrued expenses 3,721,186 2,445,960
Current taxation (provision less payments) 3,173,027 1,919,085
Acceptances 10,634,901 7,144,255
Unclaimed dividends 17,030 6,761
Payable to defined benefit plan 38.3 & 38.15 645,340 726,369
Charity payable 20.3 942 139
Provision against off-balance sheet obligations 20.2 85,249 83,429
Security deposits against Ijarah 13,623,020 9,211,429
Payable on account of credit murabaha / ijarah 75,439 11,566
Balances under home remittances / cash management arrangements 539,999 203,905
Security deposits against lockers 100,532 85,147
Retention Money 60,688 50,688
Advance against future Diminishing Musharakah - 55,320
Witholding taxes payable 123,762 129,473
Workers Welfare Fund payable 20.4 1,378,687 994,865
Others 895,639 872,235
38,571,522 26,274,075
20.1 This includes Rs 121 million (2017: Rs 84 million) in respect of return accrued on borrowings from SBP under the Islamic
Export Refinance Scheme and Rs 2.9 million (2017: Nil) in respect of return accrued on borrowings from SBP under the
Islamic Long Term Financing Facility.
Note 2018 2017

Rupees in ‘000
20.2 Provision against off-balance sheet obligations

Closing balance 20.2.1 85,249 83,429
20.2.1 This includes provision recognized against guarantees of non-performing customers.
Note 2018 2017

Rupees in ‘000
20.3 Reconciliation of charity payable
Balance as at January 1 139 1,509

Additions during the year 36,922 31,439
Less: Transferred to charity savings account
(included in deposits and other accounts) 20.3.1 (36,119) (32,809)
Balance as at December 31 942 139

20.3.1 Charity paid through saving account during the year is Rs. 38.4 million (2017: Rs 30.9 million). Charity of Rs 100,000
or higher was paid to the following organizations:
2018 2017
Rupees in ‘000
Ihsan Trust - Related Party 28,000 25,000

Lahore Businessmen Association For Rehabilitation of the Disabled 1,000 1,000
Patients' Behbud Society for the Aga Khan University Hospital 1,000 1,000
The Indus Hospital 1,000 -
Pakistan Disabled Foundation 400 200
Burhani Medical Welfare Association 300 -
Garage School 300 -
Idara - Al Khair 300 -
Omair Sana Foundation 300 -
Pakistan Association of Blind 300 100
Helping Hands Foundation 250 -
Medical Aid Foundation (Rahat Kada) 250 -
Afzaal Memorial Thelesimia Foundation 200 -
Behbud Association Karachi 200 -
Bin Qutub Foundation Chakwal 200 -
Centre For Development of Social Services 200 -
Family Educational Services Foundation 200 350
Health and Nutrition Development Society 200 -
Khwendo Kor 200 -
Kiran Foundation 200 -
Muhammadi Blood Bank 200 -
Muslim Welfare Centre 200 200
Patients Aid Foundation - Jinnah Hospital 200 -
Rashid Memorial Walfare Organization 200 -
Sargodhian Spirit Trust 200 300
Eye Donor Organization 150 150
Patients Welfare Association 150 -
Al- Mustafa Trust Rawalpindi 100 -
Care Foundation 100 200
Child Aid Association 100 -
Frontier Foundation Welfare Hospital And Blood Transfusion Service 100 -
Health Education and Livelihood Promoter 100 200
Jamal Noor Hospital 100 -
Jinnah Foundation 100 -
Karigar Training Institute 100 100
Marie Adelaide Leprocy Centre 100 -
Markaz e Umeed 100 -
Mercy Pak 100 100
Nigaheban Trust 100 150
Noor e Ali Trust (JS Academy of Deaf) 100 100
Pakistan Association of Deaf 100 200
Saylani Welfare Trust 100 -
SINA Health, Education & Welfare Trust 100 200
Health Oriented and Preventative Education (HOPE), Karachi 100 -
SOS Children Village Islamabad 100 -
SOS Children Village Karachi 100 100
Trust Jamiat Taleem Ul Quran 100 -
Women Islamic Lawyer's Forum 100 -
Binoria Welfare Trust, Karachi - 200
Burns Centre, Civil Hospital, Karachi - 100
Creek General Hospital Karachi - 200
Fatimid Foundation Peshawar Centre - 500
Infaq Memorial Trust - 100
National Institute of Cardiovascular Disease - 100
38,400 30,850

20.3.2 The balance in Charity's saving account is Rs 0.144 million (2017: Rs 2.259 million).
20.3.3 Charity was not paid to any organization in which a director or his spouse had any interest at any time during the year.
20.4 The Group has made full provision for Workers Welfare Fund (WWF) based on profit for the respective years (2008-2018). In
2016, the Supreme Court of Pakistan vide its order dated November 10, 2016 has held that the amendments made in the law
introduced by the Federal Government for the levy of Workers Welfare Fund were not lawful. The Federal Board of Revenue
has filed review petitions against this order which are currently pending. Legal advice obtained on the matter indicates that
consequent to filing of these review petitions the judgment may not currently be treated as conclusive. Accordingly, the
Group continues to maintain the provision in respect of WWF.
21 SHARE CAPITAL
21.1 Authorised capital
2018 2017 2018 2017

2,338,380,000 2,000,000,000 Ordinary shares of Rs 10 each 23,383,800 20,000,000
2018 2017 2018 2017

Ordinary shares
516,517,908 516,517,908 Fully paid in cash 5,165,179 5,165,179
652,674,492 546,384,260 Issued as bonus shares 6,526,745 5,463,843
1,169,192,400 1,062,902,168 11,691,924 10,629,022
21.2 Shareholding held by associated companies are as follows:

2018 2017
Number of Percentage of Number of Percentage of
shares held Shareholding shares held Shareholding
Name of Shareholders
Noor Financial Investment Company - Kuwait 446,432,362 38.18% 522,033,439 49.11%

Pakistan Kuwait Investment Company (Private) Limited 350,757,710 30.00% 318,870,646 30.00%
Islamic Development Bank 109,014,771 9.32% 99,104,338 9.32%
Meezan Islamic Fund 6,950,134 0.59% 2,840,077 0.27%
Al Meezan Mutual Fund 1,331,500 0.11% - -
Meezan Balanced Fund 889,350 0.08% 79,819 0.01%
Meezan Asset Allocation Fund 488,951 0.04% 6,410 0.00%
Meezan Dedicated Equity Fund 430,550 0.04% 510,000 0.05%
Note 2018 2017

22 RESERVES
Rupees in ‘000
Share Premium 2,406,571 2,406,571

Statutory reserve 22.1 9,570,365 7,777,925
Non Distributable Capital Reserve - Gain on Bargain Purchase 3,117,547 3,117,547
General reserve 91,082 91,082
15,185,565 13,393,125

22.1 Under section 21 of the Banking Companies Ordinance, 1962, an amount not less than 20% of the profit is to be transferred
to create a reserve fund till such time the reserve fund and the share premium account equal the amount of the paid up
capital.
Note 2018 2017

23 (DEFICIT) / SURPLUS ON REVALUATION OF ASSETS - NET OF TAX Rupees in ‘000
Available for sale secuities

- Quoted shares / units of mutual fund 277,249 885,750
- Sukuk (381,916) 278,553
(104,667) 1,164,303
Non-banking assets acquired in satisfaction of claims 23.1 34,080 -
(70,587) 1,164,303
Less: Deferred tax asset / (liability) on
- Available for sale securities 36,632 (348,008)
- Non-banking assets acquired in satisfaction of claims (11,928) -
24,704 (348,008)
(45,883) 816,295
23.1 During the current year, market valuation of non-banking assets acquired in satisfaction of claims resulted in surplus of Rs 34.080
million (2017: Nil).
2018 2017
24 NON-CONTROLLING INTEREST
Rupees in ‘000

Share of profit for the year 176,149 161,481
Remeasurements of defined benefit plan -
net of tax (directly recognised in OCI) (2,690) (995)
Dividend payout by Subsidiary (175,000) (374,500)

Note 2018 2017

25 CONTINGENCIES AND COMMITMENTS
Rupees in ‘000
Guarantees 25.1 31,724,600 16,912,669

Commitments 25.2 429,428,900 344,953,214
Other contingent liabilities 25.3 1,802,000 1,802,000
462,955,500 363,667,883
25.1 Guarantees:
Financial guarantees 7,561,791 369,446
Performance guarantees 12,533,871 8,472,268
Other guarantees 11,628,938 8,070,955
31,724,600 16,912,669
25.2 Commitments:
- Documentary letters of credit 92,343,175 66,003,500
Commitments in respect of:

- forward foreign exchange contracts 25.2.1 118,865,324 124,558,666
Commitments for acquisition of:

- fixed assets 313,580 188,778
- intangible assets 87,475 13,515
Other commitments 25.2.2 217,819,346 154,188,755

429,428,900 344,953,214
25.2.1 Commitments in respect of forward foreign exchange contracts
Purchase 74,321,214 75,272,094

Sale 44,544,110 49,286,572
118,865,324 124,558,666
25.2.2 Other Commitments
Commitments in respect of financing 25.2.2.1 217,819,346 154,188,755
25.2.2.1 The Group makes commitments to extend credit (including to related parties) in the normal course of business but
these being revocable commitments do not attract any significant penalty or the expense if the facility is unilaterally
withdrawn, other than commitments in respect of syndicated / long term financing amounting to Rs 26,732 million
(2017: Rs 22,245 million).
25.3 Other contingencies
The Income Tax Department has amended the deemed assessment orders of the Holding company for prior years including
the tax year 2018. The additions / disallowances were mainly due to allocation of expenses relating to dividends and capital
gain, allowability of provision against loans and advances, 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 and
non-adjustment of loss pertaining to HSBC Bank Middle East – Pakistan Branches have also been raised. The Holding
company has obtained stay order from the High Court of Sindh against the demands raised through the amended order for
the tax year 2015. Both the Holding company and the department have filed appeals with the Appellate Authorities in respect
of the aforementioned matters.
The management of the Holding company, in consultation with its tax advisors, is confident that the decision in respect of the
above matters would be in Holding company’s favour and accordingly no provision has been made in these 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.

26 PROFIT / RETURN EARNED ON FINANCING, Note 2018 2017

INVESTMENTS AND PLACEMENTS Rupees in ‘000
On financing 26.1 30,203,441 21,495,183
On investments in
- Available for sale securities 5,330,663 4,753,140
- Held for trading securities - 8,324
- Held to maturity securities 1,573,470 1,565,200
On deposits / placements with financial institutions 11,521,565 8,612,816

48,629,139 36,434,663
26.1 The income on Ijarah under IFAS 2 is net off takaful of Rs 1,359 million (2017: Rs 914 million) recovered from customers.
Note 2018 2017

Rupees in ‘000
27 PROFIT ON DEPOSITS AND OTHER DUES EXPENSED
Deposits and other accounts 27.1 18,190,697 13,796,692

Sub-ordinated Sukuk 849,039 461,030
Other Musharakahs / Mudarabas / Murabaha 27.2 1,413,623 1,423,919
20,453,359 15,681,641
27.1 This includes conversion cost of Rs 638 million (2017: Rs 411 million) against foreign currency deposits.
27.2 This includes Rs 445 million (2017: Rs 316 million) paid / payable to SBP under Islamic Export Refinance Scheme and Rs 2.9 million
(2017: Nil) payable to SBP under the Islamic Long Term Financing Facility.
28 FEE AND COMMISSION INCOME Note 2018 2017

Rupees in ‘000
Trade related fees and commissions 1,821,762 1,268,083

Management fees in respect of Mutual Funds 1,565,565 1,864,037
Commission on guarantees 90,830 88,058
Branch banking customer fees 1,482,742 1,189,468
Credit processing related fees 122,941 85,142
Debit card related fees 1,127,899 809,492
Investment banking related fees 228,653 304,340
Cash management fees 44,625 25,675
Home remittance related fees 151,133 99,588
Others 186,585 296,125
6,822,735 6,030,008
29 (LOSS) / GAIN ON SECURITIES - NET
Realised 29.1 (39,376) 939,266
29.1 Realised (loss) / gain on:

Listed Shares 23,921 385,058
Federal Government Securities (18,195) 306,211
Associates (44,551) 252,766
Other Securities including foreign securities (551) (4,769)
(39,376) 939,266

30 OTHER INCOME Note 2018 2017

Rupees in ‘000
Gain on termination of
- Ijarah financing 198,793 144,205
- Diminishing Musharakah financing 21,388 19,767
Gain on sale of operating fixed assets 85,781 73,554
Rental income 5,989 7,441
Others 1,535 142,493
313,486 387,460
31 OPERATING EXPENSES
Total compensation expense 31.1 & 31.2 10,656,318 8,899,267
Property expense
Rent and taxes 2,086,351 1,795,067
Utilities cost (including electricity and diesel) 723,796 666,956
Security (including guards) 526,788 548,517
Repair and maintenance (including janitorial charges) 598,213 514,694
Others 36,920 34,461
4,522,186 4,057,935
Information technology expenses
Software maintenance 203,423 162,482
Hardware and related maintenance 173,151 132,531
Network charges 181,381 183,571
1,099,184 1,044,008
Other operating expenses
Non-executive Directors' fee 48,542 42,843
Shariah Board Fees 700 1,606
Legal and professional charges 84,011 78,291
Travelling and conveyance 98,624 88,841
NIFT and other clearing charges 148,890 141,943
Depreciation on vehicles, equipments, etc. 714,941 637,274
Training and Development 84,286 53,292
Communication (including courier) 333,315 266,315
Stationery and printing 499,113 414,951
Marketing, advertisement and publicity 364,136 215,541
Auditors’ Remuneration 31.4 17,998 10,882
Donation 31.5 7,920 -
Fees, subscription and other charges 190,988 147,477
Local transportation and car running 408,425 330,017
Brokerage and bank charges 175,475 166,560
Office supplies 228,614 202,248
Security charges - cash transportation 230,101 241,179
Entertainment 76,910 58,444
Others 25,420 128,158
Reimbursement of expenses from associated funds to the subsidiary (348,232) (230,007)
3,509,534 3,124,625
19,787,222 17,125,835

31.1 The Holding company has performance bonus policy for all employees including the President & Chief Executive Officer and
Deputy Chief Executive Officer. The aggregate amount determined for eligible employees in respect of the bonus relating to
all Executives and for the President & CEO and Deputy CEO of the Holding comapny amounted to Rs 453 million (2017:
Rs 338 million), Rs 105.76 million (2017: Rs 83.14 million) and Rs 70.47 million (2017: Rs 55.40 million).
31.2 Remuneration amounted to Rs 14.2 million (2017: Rs 11.5 million) paid to Holding company‘s Resident Shariah Board Member.
31.3 Total cost for the year relating to outsourced activities is Rs 1,573 million (2017: Rs 1,397 million) entirely relating to companies
incorporated in Pakistan. Outsourcing cost payment were made to companies incorporated in Pakistan mainly on account of
security guards, janitorial staff and courier services.
31.4 Auditors’ remuneration 2018 2017

Rupees in ‘000
Audit fee 4,279 3,985

Fee for interim review 982 872
Special certifications / reviews 9,696 3,776
Tax services - 210
14,957 8,843
Sindh sales tax on services 1,150 643
Out of pocket expenses 1,891 1,396
17,998 10,882
31.5 Donation
The Supreme Court of Pakistan and the Prime Minister of Pakistan

Diamer - Bhasha and Mohmand Dams Fund 7,920 -
None of the directors, sponsor shareholders, key management personnel and their spouses had any interest in the Donee.
32 OTHER CHARGES Note 2018 2017

Rupees in ‘000
Penalties imposed by the State Bank of Pakistan 16,419 10,824
33 PROVISIONS & WRITE OFFS - NET
Provision against non-performing islamic financing and related assets - net 11.10 894,866 720,189
Provision against diminution in the value of investments 10.3 307,401 586,732
Other reversals 33.1 (15,774) (42)
Bad debts written off directly 464 -
Recovery against written off financing 33.2 (18,906) (23,553)
1,168,051 1,283,326
33.1 This mainly represents takaful recoveries against operational losses incurred by the Group in prior years.
33.2 This includes recoveries against financing written off by HSBC ME prior to its acquisition by the Group.
Note 2018 2017

34 TAXATION
Rupees in ‘000
Current
- for the year 6,772,179 4,599,996
- for prior year 34.1 - 373,600
6,772,179 4,973,596
Deferred
- for the year (726,099) (820,745)
6,046,080 4,152,851

34.1 The Finance Act, 2018 has revised the applicability of super tax brought into effect through Finance Act, 2015 for rehabilitation
of temporary displaced persons for tax years 2019, 2020 and 2021 at the rate of 4%, 3% and 2% respectively on the taxable
income for respective years. Accordingly the Holding comapny has recognized super tax charge of Rs 660.333 million in the
current year which is determined at the applicable tax rate of 4 percent on taxable income for the year.
The Finance Supplementary (Second Amendment) Bill, 2019 proposed levy of super tax on taxable income for tax year 2018
(accounting year 2017) retrospectively at the rate of 4% upto tax year 2021. The proposed amendments were not enacted as
at 31 December 2018 and therefore, the Group has not made super tax provision amounting to Rs 470.030 million for tax year
2018 (accounting year 2017) in these consolidated financial statements.
34.2 Relationship between tax expense and accounting profit Note 2018 2017
Rupees in ‘000
Effects of:
- Tax calculated at the applicable rate of 35% 5,312,997 3,476,495
- Super tax for the accounting year 2018 (tax year 2019) 660,333 -
- Income chargeable to tax at reduced rate 47,669 105,031
- Prior year - 373,600
- Permanent differences 3,494 5,326
- Others 21,587 192,399
Tax charge for the year 6,046,080 4,152,851
2018 2017
35 BASIC AND DILUTED EARNINGS PER SHARE
Rupees in ‘000
Profit for the year 8,957,761 5,618,512
(Number)
Weighted average number of ordinary shares 1,169,192,400 1,135,477,682
(Rupees)
Restated
Basic earnings per share 35.1 7.66 4.95
35.1 The Holding company has issued bonus shares during the year and accordingly the earnings per share for the comparative year
has been restated.
Note 2018 2017

Rupees in ‘000
36 CASH AND CASH EQUIVALENTS
Cash and balances with treasury banks 7 65,022,412 64,556,409

Balances with other banks 8 8,277,146 4,940,090
73,299,558 69,496,499
2018 2017
37 STAFF STRENGTH Number of Staff
Permanent 7,834 7,142

Contractual basis 1,345 1,489
Group's own staff strength at the end of the year 9,179 8,631
Outsourced 37.1 1,474 1,399
Total Staff Strength 10,653 10,030
37.1 This excludes outsourced security guards and janitorial staff.

38 DEFINED BENEFIT PLAN
38.1 General description - Defined Benefit Plan (Gratuity Scheme) of MBL
The activities of the gratuity scheme are governed by Meezan Bank Limited Staff Gratuity Fund established in 2000 under
the provisions of a trust deed. Plan assets held in trust are governed by the Trust Deed as is the nature of the relationship
between the MBL and the trustees and their composition. Responsibility for governance of the plan including the investment
decisions lies with the Trustees. The Board of Trustees comprise of representatives of the MBL and scheme participants
in accordance with the Fund's trust deed.
38.2 Number of Employees under the gratuity scheme

2018 2017
(Number)
Number of Employees eligible under the gratuity scheme 7,464 6,848
2018 2017
38.3 Reconciliation of amount payable to defined benefit plan Rupees in ‘000
Present value of defined benefit obligations 1,386,260 1,297,029
Fair value of plan assets (1,063,037) (855,904)
323,223 441,125
38.4 Plan assets consist of the following:
2018 2017
Rupees in '000 % Rupees in '000 %
Meezan Aamdan Certificates 918,936 86% 606,937 71%

Al Meezan Mutual Fund 56,293 5% 63,882 8%
Meezan Asset Allocation Plan 59,694 6% 164,157 19%
Fatima Fertilizer Company Limited - Sukuk 8,829 1% 11,772 1%
Savings account with Meezan Bank Limited 19,285 2% 9,156 1%
1,063,037 100% 855,904 100%

38.5 The movement in the defined benefit obligation over the year is as follows:
2018

Rupees in ‘000
At January 1 1,297,029 (855,904) 441,125
1,704,085 (952,072) 752,013
Remeasurements:
included in interest expense - 201,822 201,822
- Experience gains (189,487) - (189,487)
(189,487) 201,822 12,335
1,514,598 (750,250) 764,348
Contribution - (441,125) (441,125)
At December 31 1,386,260 (1,063,037) 323,223
2017

Rupees in ‘000
At January 1 968,320 (844,964) 123,356
1,289,714 (922,960) 366,754
Remeasurements:
included in return expense - 110,363 110,363
- Experience losses 87,364 - 87,364
87,364 110,363 197,727
1,377,078 (812,597) 564,481
Contribution - (123,356) (123,356)
At December 31 1,297,029 (855,904) 441,125

38.6 Charge for defined benefit plan (in respect of the gratuity scheme) 2018 2017
Rupees in ‘000
38.6.1 Cost recognised in consolidated profit and loss

Current service cost 291,330 237,847
Net return cost 19,558 5,551
310,888 243,398
38.6.2 Re-measurements recognised in Consolidated OCI during the year

Loss / (gain) on obligation - Experience adjustment (189,487) 87,364
Return on plan assets over interest income 201,822 110,363
Total re-measurements recognised in consolidated OCI 12,335 197,727
Total expense recognized in Consolidated Profit and Loss Account amounted to Rs 351.317 million (2017: Rs 279.078
million) of which Rs 310.888 million (2017: Rs 243.398 million) pertains to approved Gratuity funded Scheme and
Rs 40.429 million (2017: Rs 35.680 million) pertains to End of Service unfunded Defined Benefit scheme. Total credit
recognized in Consolidated Other Comprehensive Income amounted to Rs 1.998 million (2017: expense of Rs 189.878
million) of which expense of Rs 12.335 million (2017: Rs 197.727 million) pertains to approved Gratuity Scheme and
Rs 14.333 million - Reversal (2017: reversal of Rs 7.849 million) pertains to End of Service unfunded Defined Benefit scheme.
38.7 The plan assets and defined benefit obligations (in respect of the gratuity scheme) are based in Pakistan.
38.8 Principal actuarial assumptions

2018 2017
Discount rate 13.75% p.a 9.50% p.a

Expected rate of increase in salaries 12.75% p.a 9.50% p.a
Expected rate of return on investments 13.75% p.a 9.50% p.a
Normal retirement age 60 years 60 years
38.9 Assumptions regarding future mortality are set based on actuarial advice in accordance with published statistics and experience
in Pakistan. The rates assumed are based on the adjusted SLIC 2001 - 2005 mortality tables with one year age set back.
38.10 The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:
Impact on defined benefit

obligation - Increase / (Decrease)
Change in Increase in Decrease in

assumption assumption assumption
Rupees in ‘000
Discount rate 1.0% (138,443) 163,504
Salary growth rate 1.0% 170,249 (146,144)
Increase by Decrease by
10% 10%
in assumption in assumption
Life expectancy / Withdrawal rate (139) 138
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. When
calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of
the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied
as when calculating the gratuity liability recognised within the Consolidated Statement of Financial Position.
38.11 The weighted average duration of the defined benefit obligation is 10.91 years.

38.12 Expected maturity analysis of undiscounted defined benefit obligation for the gratuity scheme is as follows:
At December 31, 2018 Less than a Between 1-2 Between 2-5 Over 5 years Total
year years years
Rupees in ‘000
Gratuity 113,881 80,057 267,155 11,640,066 12,101,159
38.13 Funding levels are monitored on an annual basis and are based on actuarial recommendations. Contribution for the next
year works out to Rs 280.170 million as per the actuarial valuation report of the Holding company as of December 31, 2018.
38.14 Through its defined benefit gratuity plan, the Fund is exposed to a number of risks, the most significant of which are
detailed below:
Asset volatility The plan liabilities are calculated using a discount rate set with reference to corporate
bond yields; if plan assets underperform to the yield, this will create a deficit. The Fund
believes that due to long-term nature of the plan liabilities and the strength of the MBL's
support, the current investment strategy manages this risk adequately.
Changes in Sukuk A decrease in corporate bond yields will increase plan liabilities, although this will be
(bond) yields partially offset by an increase in the value of the plans' sukuk holdings.
Inflation risk The majority of the plans' benefit obligations are linked to inflation, and higher inflation will
lead to higher liabilities. However plan assets are variable rate instruments and are re-priced
at regular intervals to off set inflationary impacts.
Life expectancy / The majority of the plans' obligations are to provide benefits on severance with the MBL
Withdrawal rate on achieving retirement. Any change in life expectancy / withdrawal rate would impact
plan liabilities.
38.15 End of Service Unfunded Defined Benefit
The Holding company also operates an End of Service unfunded defined benefit for the founding President and Chief
Executive Officer.
The charge in respect of current service cost is recognised based on expected period of future service. The net charge for
the year of this benefit amounted to Rs 26.096 million. The charge of Rs 40.429 million has been recognized in the
Consolidated Profit and Loss Account and the credit / reversal of Rs 14.333 million has been recognized in Consolidated Other
Comprehensive Income. The present value of defined benefit obligation recognised in respect of this benefit amounts to
Rs 300.854 million.
The principal actuarial assumptions comprise of discount rate of 13.75 percent and salary increase rate of 12.75 percent.
The retirement age used by the actuary is 66 years. The sensitivity of the defined benefit obligation due to a one percent
change in discount rate would be Rs 3.704 million (in case the discount rate is increased) and Rs 3.785 million (in case
the discount rate is decreased). The sensitivity of the defined benefit obligation due to change in life expectancy /
withdrawal rates would be lower by Rs 0.018 million (in case of ten percent increase in assumption) and higher by Rs 0.019
million (in case of ten percent decrease in assumption). These sensitivities are calculated using the same methodology as
explained in note 38.10.
38.16 The disclosure made in notes 38.1 to 38.15 are based on the information included in the actuarial valuation report of the
Holding company as of December 31, 2018.
39 DEFINED CONTRIBUTION PLAN
The Group also operates a recognized contributory provident fund for all permanent employees. Equal monthly contributions are
made, both by the Group and the employees, to the fund at a rate of 10% of basic salary.
2018 2017
Rupees in ‘000
Contribution from the Group 286,118 249,853

Contribution from the employees 286,118 249,853
572,236 499,706

40 COMPENSATION OF DIRECTORS AND EXECUTIVES
President and
Chief Executive Directors Executives
2018 2017 2018 2017 2018 2017
Rupees in ‘000
Fees* - - 48,542 42,843 - -
Managerial remuneration 45,280 42,717 30,171 28,463 1,002,603 797,959
Charge for gratuity fund - - 2,155 2,033 50,989 42,977
Contribution to defined contribution plan - - 1,293 2,440 63,774 53,004
House Rent 17,465 16,476 11,637 10,978 301,099 255,875
Utilities 3,881 3,661 2,586 2,440 66,912 56,862
Medical 4,184 7,758 2,763 2,751 62,054 54,934
Conveyance 1,891 1,706 1,071 1,088 - -
Others 2,057 1,536 2,901 1,508 4,680 2,639
74,758 73,854 103,119 94,544 1,552,111 1,264,250
Number of persons 1 1 10 11 297 250
* This includes amount charged in these financial statements as fees to nine (2017: ten) non-executive directors.
40.1 Executives mean employees, other than Chief Executive Officer and Directors, whose basic salary exceeds one million and two
hundred rupees in a financial year. Further, the Chief Executive Officer of the subsidiary company has also been included under
the head "Executives".
40.2 The Chief Executive, the Deputy Chief Executive Officer (the Executive Director) and certain executives have been provided with
free use of the Group cars.
40.3 In addition to the above, all Executives of the Holding company, including the President & Chief Executive Officer and Deputy Chief
Executive Officer of the Holding company are also entitled to bonus which is disclosed in note 31.1 to these consolidated financial
statements. Further, End of Service Benefit for the founding President and Chief Executive Officer of the Holding company was
approved in 2015 and the related expense is disclosed in note 38.15 to these consolidated financial statements.
41 FAIR VALUE OF FINANCIAL INSTRUMENTS
41.1 The fair value of investments in listed securities, except investments categorised as ‘held to maturity’, investments in associates is
based on quoted market prices. The value of unquoted equity investments is reduced, if required, on the basis of break-up value
of those investments based on the latest available audited financial statements.
Fair value of Islamic financing and related assets, other assets, other liabilities and fixed term deposits and other accounts
cannot be calculated with sufficient reliability due to absence of current and active market for such assets and liabilities and
reliable data regarding market rates for similar instruments. The provision for impairment of Islamic financing and related assets
has been calculated in accordance with the Group’s accounting policy as stated in note 6.3.2.
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 assets and liabilities are short term in nature or in the case of financing and deposits are
frequently repriced.

2018 2017
41.2 Off-balance sheet financial instruments Book value Fair value Book value Fair value
Rupees in ‘000
Forward purchase of foreign exchange - net 72,163,082 74,597,244 72,953,918 75,547,124
Forward sale of foreign exchange - net 43,560,484 44,659,254 47,965,438 49,494,849
41.3 The table below analyses financial and non-financial assets carried at fair value, by valuation method. The different levels have
been defined as follows:
- Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).
- Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that
is, as prices) or indirectly (that is, derived from prices) (Level 2).
- Inputs for the assets or liabilities that are not based on observable market data (i.e. unobservable inputs e.g. estimated
future cash flows) (Level 3).
2018
Rupees in ‘000
Investments - Net
Financial Assets
GoP Sukuk - 18,715,223 - 18,715,223
PIA Sukuk - 1,500,000 - 1,500,000

2017
Rupees in ‘000
Investments - Net
Financial Assets
GoP Sukuk - 57,151,526 - 57,151,526
PIA Sukuk - 1,500,000 - 1,500,000

Held for Trading Securities

Sukuk 100,766 - - 100,766
Investment in associates (listed - mutual funds) have market value of Rs 4,196 million (2017: Rs 5,780 million) as disclosed in
note 10.7 to these consolidated financial statements which is being valued under level 1.
The Group'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 year.

(a) Financial instruments in level 1
Financial instruments included in level 1 comprise of investments in listed ordinary shares, units of open end mutual fund and
global sukuk bonds classified as available for sale.
(b) Financial instruments in level 2
Financial instruments included in level 2 comprise of GoP Ijarah sukuk and PIA sukuk classified as available for sale.
(c) Financial instruments in level 3
Currently, no financial instruments are classified in level 3.
Valuation techniques used in determination of fair values within level 2
Item Valuation approach and input used
GoP Sukuk and The fair value of GoP Ijarah Sukuk and PIA Sukuk quoted are derived using PKISRV rates. The
PIA Sukuk 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.
Forward foreign The valuation has been determined by interpolating the mid rates announced by State Bank of
exchange contracts Pakistan.
41.4 Fair value of non-financial assets
Non-banking assets acquired in satisfaction of claims have been carried at revalued amounts determined by professional valuers
(level 3 measurement) based on their assessment of the market values as disclosed in note 15. The valuations are conducted by the
valuation experts appointed by the Holding company which are also on the panel of State Bank of Pakistan. The valuation experts
used a market based approach to arrive at the fair value of the Group’s properties. The market approach used prices and other
relevant information generated by market transactions involving identical or comparable or similar properties. These values are
adjusted to reflect the current condition of the properties. The effect of changes in the unobservable inputs used in the valuations
cannot be determined with certainty, accordingly a qualitative disclosure of sensitivity has not been presented in these consolidated
financial statements.
Carrying Value
41.5 Financial assets not measured at fair value 2018 2017
Rupees in ‘000
Cash and balances with treasury banks 65,022,412 64,556,409

Balances with other banks 8,277,146 4,940,090
Due from financial institutions - net 184,814,600 147,229,221
Investments - net 95,046,058 48,996,187
Islamic financing and related assets - net 512,564,522 419,929,149
Other assets - net 25,121,364 19,506,096

42 SEGMENT ANALYSIS
42.1 Segment Details with respect to Business Activities.
2018
Corporate and Retail Trading and Asset Others Inter-segment Total
Commercial banking banking sales Management Eliminations
Rupees in ‘000
December 31, 2018
External Revenue 28,610,386 5,880,628 19,086,444 1,323,975 2,087,409 - 56,988,842
Inter segment revenue - net - 39,985,198 - - 92,553 (40,077,751) -
Total Income 28,610,386 45,865,826 19,086,444 1,323,975 2,179,962 (40,077,751) 56,988,842
Segment direct expenses 1,802,047 36,412,638 1,262,603 614,980 548,533 - 40,640,801
Inter segment expense allocation 23,370,533 - 16,707,218 - - (40,077,751) -
Total expenses 25,172,580 36,412,638 17,969,821 614,980 548,533 (40,077,751) 40,640,801
Provisions and write offs - net (826,756) (22,847) (318,448) - - - (1,168,051)
Profit before tax 2,611,050 9,430,341 798,175 708,995 1,631,429 - 15,179,990

Cash & Bank balances - 70,880,687 2,396,541 22,330 - - 73,299,558
Due from financial institutions - net - - 184,814,600 - - - 184,814,600
Investments - net 21,076,097 - 102,666,770 3,372,509 - - 127,115,376
Net inter segment lending - 671,148,377 - - 297,553 (671,445,930) -
Islamic financing and related assets - net 431,967,241 80,597,281 - - - - 512,564,522
Others 16,888,683 20,233,304 6,394,201 441,163 - - 43,957,351
Total Assets 469,932,021 842,859,649 296,272,112 3,836,002 297,553 (671,445,930) 941,751,407
Due to financial institutions 23,171,084 627,074 12,609,653 - - - 36,407,811

Deposits & other accounts - 785,444,592 - - - - 785,444,592
Subordinated Sukuk 14,000,000 - - - - - 14,000,000
Net inter segment borrowing 400,580,898 - 270,865,032 - - (671,445,930) -
Others 11,971,613 49,403,905 56,876 592,118 297,553 - 62,322,065
Total liabilities 449,723,595 835,475,571 283,531,561 592,118 297,553 (671,445,930) 898,174,468
Equity 20,208,426 7,384,078 12,740,551 3,243,884 - - 43,576,939
Total Equity & liabilities 469,932,021 842,859,649 296,272,112 3,836,002 297,553 (671,445,930) 941,751,407
Contingencies & Commitments 298,374,997 45,715,180 118,865,323 - - - 462,955,500

2017
Corporate and Retail Trading and Asset Others Inter-segment Total
Commercial banking banking sales Management Eliminations
Rupees in ‘000
December 31, 2017
External Revenue 20,899,027 4,050,249 16,575,650 1,086,668 1,713,713 - 44,325,307
Inter segment revenue - net - 29,894,398 - - 27,166 (29,921,564) -
Total Income 20,899,027 33,944,647 16,575,650 1,086,668 1,740,879 (29,921,564) 44,325,307
Segment direct expenses 1,212,545 29,214,813 1,423,765 710,684 547,330 - 33,109,137

Inter segment expense allocation 16,124,689 - 13,796,875 - - (29,921,564) -
Total expenses 17,337,234 29,214,813 15,220,640 710,684 547,330 (29,921,564) 33,109,137
Provisions and write offs - net (579,295) (117,298) (586,733) - - - (1,283,326)
Profit before tax 2,982,498 4,612,536 768,277 375,984 1,193,549 - 9,932,844
Balance Sheet
Cash & Bank balances - 68,255,547 1,196,439 44,513 - - 69,496,499
Due from financial institutions - net - - 147,229,221 - - - 147,229,221
Investments - net 21,729,513 - 97,508,733 3,922,655 - - 123,160,901
Net inter segment lending - 561,652,682 - - 505,247 (562,157,929) -
Islamic financing and related assets - net 357,449,809 62,479,340 - - - - 419,929,149
Others 11,529,100 15,859,318 5,570,980 300,965 - - 33,260,363
Total Assets 390,708,422 708,246,887 251,505,373 4,268,133 505,247 (562,157,929) 793,076,133
Due to financial institutions 21,141,465 329,007 15,342,823 - - - 36,813,295

Deposits & other accounts - 667,173,368 - - - - 667,173,368
Subordinated Sukuk 7,000,000 - - - - - 7,000,000
Net inter segment borrowing 337,179,536 - 224,978,393 - - (562,157,929) -
Others 8,013,062 34,225,635 - 935,953 505,247 - 43,679,897
Total liabilities 373,334,063 701,728,010 240,321,216 935,953 505,247 (562,157,929) 754,666,560
Equity 17,374,359 6,518,877 11,184,157 3,332,180 - - 38,409,573
Total Equity & liabilities 390,708,422 708,246,887 251,505,373 4,268,133 505,247 (562,157,929) 793,076,133
Contingencies & Commitments 208,242,163 30,867,054 124,558,666 - - - 363,667,883
43 TRUST ACTIVITIES
The Holding company commonly act as trustee and in other fiduciary capacities that result in the holding or placing of assets on behalf of
individuals, trusts, retirement benefit plans and other institutions including on behalf of certain related parties. These are not assets of the
Group and, therefore, are not included in the Consolidated Statement of Financial Position. The following is the list of assets held under trust:
2018 2017 2018 2017

Category Type
No. of IPS account Face Value
Rupees in ‘000
Insurance Companies Government Ijarah Sukuks 5 5 216,500 1,981,000
Asset Management Companies Government Ijarah Sukuks 11 11 - -
Employee Funds / NGO's Government Ijarah Sukuks 15 13 68,000 28,000
Individuals Government Ijarah Sukuks 19 19 9,000 12,700
Others Government Ijarah Sukuks 8 4 12,500 40,000
Related parties - Associates Government Ijarah Sukuks 3 3 95,000 95,000
Related parties - Others Government Ijarah Sukuks 1 1 75,000 75,000
62 56 476,000 2,231,700

44 RELATED PARTY TRANSACTIONS
44.1 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 major shareholders, associated companies, retirement
benefit funds, directors, and key management personnel and their close family members.
44.2 Transactions with related paties are entered 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
to the key management personnel is determined in accordance with the terms of their appointment.
44.3 Key management personnel

- President and Chief Executive Officer - Holding Company
- Deputy Chief Executive Officer - Holding Company
44.4 Details of transactions with related parties and balances with them (other than those disclosed in respective notes) as at the
year-end as are follows:
Total Associates Directors Key Management Other Related

Personnel Parties
2018 2017 2018 2017 2018 2017 2018 2017 2018 2017
Rupees in ‘000
Islamic financing and related assets
At January 1, 676,504 2,484,365 676,504 2,484,365 - - - - - -
Addition during the year 3,732,561 6,613,113 3,732,561 6,613,113 - - - - - -
Deletion during the year (3,971,537) (8,420,974) (3,971,537) (8,420,974) - - - - - -
At December 31 437,528 676,504 437,528 676,504 - - - - - -
Investments
At January 1, 5,779,700 6,605,447 5,779,700 6,605,447 - - - - - -
Addition during the year 524,448 1,848,996 524,448 1,848,996 - - - - - -
Deletion during the year (2,108,135) (2,674,743) (2,108,135) (2,674,743) - - - - - -
At December 31 4,196,013 5,779,700 4,196,013 5,779,700 - - - - - -
Deposits
At December 31 5,222,976 4,381,811 1,125,645 1,248,619 107,304 78,613 523,483 350,554 3,466,544 2,704,025
Balances pertaining to parties that were related at the beginning of the year but ceased to be related during any part of the current year are not
reflected as part of the closing balance. However, new related parties have been added during the year. The same are accounted for through the
movement presented above.

Total Associates Directors Key Management Other Related

Personnel Parties
2018 2017 2018 2017 2018 2017 2018 2017 2018 2017
Rupees in ‘000
Other Assets
Profit receivable on financing / investments 12,820 10,228 12,820 10,228 - - - - - -
Fee and Other Receivable 4,554 1,500 1,054 1,500 - - - - 3,500 -
Sub-ordinated Sukuk (Tier II) 618,000 - 618,000 - - - - - - -
Other Liabilities
Payable to defined benefit plan 645,340 726,369 - - - - 300,854 274,758 344,486 451,611
Contingencies and Commitments
Letters of credit (unfunded) 27,572 29,851 27,572 29,851 - - - - - -
Income, Expenses and Transactions
Profit earned on financing / investments 46,657 152,697 46,657 152,697 - - - - - -
Fees and other income earned 1,633,955 2,010,154 1,633,955 2,010,154 - - - - - -
Dividend income earned 17,669 377,626 17,669 377,626 - - - - - -
Capital (loss) / gain - net (44,551) 252,766 (44,551) 252,766 - - - - - -
Return on deposits / borrowing expensed 249,679 180,522 43,468 32,964 1,463 1,208 12,303 10,093 192,445 136,257
Charge for defined benefit plan 368,587 480,213 - - - - - - 368,587 480,213
Contribution to defined contribution plan 286,118 249,853 - - - - - - 286,118 249,853
Contribution to staff benevolent fund 20,000 20,000 - - - - - - 20,000 20,000
Charity Paid 28,000 25,000 - - - - - - 28,000 25,000
Remuneration to key management personnel
- Salaries and benefits (excluding end of
service benefit) (notes 40 & 31.1) 305,565 264,095 - - - - 305,565 264,095 - -
- End of service benefit charge for the
founder president (note 38.15) 26,096 27,831 - - - - 26,096 27,831 - -
Fee to non-executive directors (note 40) 48,542 42,843 - - 48,542 42,843 - - - -
Proceeds from sale of fixed assets having
net book value of Rs 0.361 million 1,984 - - - - - 1,984 - - -
45 CAPITAL ASSESSMENT AND ADEQUACY BASEL SPECIFIC
The State Bank of Pakistan (SBP) has introduced new guidelines with respect to disclosure of capital adequacy related information
in the financial statements of banks vide its communication dated November 5, 2014. These guidelines are based on the
requirements of Basel III which were introduced earlier by the SBP in August 2013 for implementation by banks in Pakistan. The SBP
had specified a transitional period for implementing new standards which came to its end on 31st December 2018. The disclosures
below have been prepared on the basis of these new guidelines. The comparative information is as per requirements which were
applicable last year.
45.1 Capital structure
Under Basel III framework, the Group's regulatory capital has been analysed into two tiers as follows:
- Tier 1 capital (going concern capital) which is sub divided into:
a) Common Equity Tier 1 (CET1), which includes fully paid up capital, balance in share premium account, reserve for bonus
issue, general reserves, unappropriated profits (net of losses), and minority interest, etc after regulatory deductions for
reciprocal crossholdings; deficit on revaluation of available for sale investments; investment in own shares; and book value of
intangibles.
b) Additional Tier 1 capital (AT1), which includes perpetual, unsecured, subordinated, non-cumulative and contingent
convertible Sukuk instrument issued by the Group.

- Tier II capital, which includes sub-ordinated sukuk, general provisions for loan losses (upto a maximum of 1.25% of
credit risk weighted assets), reserves on revaluation of fixed assets and available for sale investments after
deduction of deficit on available for sale investments, indirect holding of own capital.
Banking operations are categorised in either the trading book or the banking book and risk weighted assets are
determined according to the specified requirements that seek to reflect the varying levels of risk attached to assets and
off balance sheet exposures.
The required capital adequacy ratio is achieved by the Group through:
(a) Adequate level of paid up capital;

(b) Adequate risk profile of asset mix;
(c) Ensuring better recovery management; and
(d) Maintaining acceptable profit margins.
45.2 Capital adequacy ratio
The main objective of the capital management is to improve the financial position and strengthen the statement of
financial position of the Group to support the growth in business, provide protection to depositors and enhance
shareholders' value.
The Holding company’s Board and the management is committed to maintaining a sound balance between depositors'
liability and shareholders' funds so that optimal capital / debt ratio is maintained. The optimal capital / debt ratio will
provide reasonable assurance to depositor's about safety and security of their funds and at the same time provide
impetus to the management to invest their depositors’ funds into profitable ventures without compromising the risk
profile of the Holding company. The capital requirement of the Holding company has been determined based on the
projected growth plan to be achieved in the next 3 years in all areas of business operations. Further, it also takes into
account a road map for capital enhancement as directed by the State Bank of Pakistan vide its various circulars issued
from time to time.
The Holding company prepares Annual Budget and Three Year Plan for purpose of the growth map and future direction.
Bottom up approach is used to prepare annual budget and detailed deliberations are held while preparing Three Year
Plan. The growth prospects takes into consideration prevailing economic and political factors in Pakistan and abroad.
In implementing current capital requirements the State Bank of Pakistan requires banks to maintain minimum Capital
Adequacy Ratio (CAR) of 11.90% as of December 31, 2018 whereas CAR stood at 14.88% at the year ended December
31, 2018.
The Group calculates capital adequacy ratio for credit risk, market risk and operational risk based upon requirements
under Basel Accord as per guidelines issued by the State Bank of Pakistan from time to time in this regard.
Sensitivity and stress testing of the Group under different risk factors namely yield rate, forced sale value of collateral,
non-performing financing and foreign exchange rate depicts that the Bank’s capital adequacy ratio is above the
regulatory requirements.
The Group has taken into account credit risk, market risk and operational risk when planning its assets.

46 CAPITAL ADEQUACY AND LEVERAGE RATIOS

2018 2017
Rupees in ‘000
Minimum Capital Requirement

Paid-up capital (net of losses) 11,691,924 10,629,022
Capital Adequacy Ratio

Eligible Common Equity Tier 1 Capital 42,034,961 36,272,695
Eligible Additional Tier 1 Capital 7,027,818 22,294
Total Eligible Tier 1 Capital 49,062,779 36,294,989
Eligible Tier 2 Capital 9,989,706 10,116,371
Total Eligible Capital (Tier 1 + Tier 2) 59,052,485 46,411,360
Risk Weighted Assets

Credit Risk 323,222,054 281,851,833
Market Risk 16,845,781 17,814,020
Operational Risk 56,780,995 47,604,403
Total 396,848,830 347,270,256
Common Equity Tier 1 Capital Adequacy ratio 10.59% 10.45%

Tier 1 Capital Adequacy Ratio 12.36% 10.45%
Total Capital Adequacy Ratio 14.88% 13.36%
Leverage Ratio
Tier-1 Capital 49,062,779 36,294,989
Total Exposures 1,109,745,157 908,746,046
Leverage Ratio 4.42% 3.99%
46.1 Full disclosure on Capital Adequacy and Leverage Ratios prepared as per SBP instructions is available at http://
www.meezanbank.com
47 RISK MANAGEMENT
The wide variety of the Group’s business activities require the Group to identify, assess, measure, aggregate and manage risks
effectively which are constantly evolving as the business activities expand in response to the Group's strategy and growth. The
Group manages the risk through a framework of risk management encompassing policies and procedures, organisational
structures, risk measurement and monitoring processes and techniques that are closely aligned with business activities of the
Group.
Risk management principles
- The Board of Directors (the Board) provides overall risk management supervision. The Board Risk Management Committee
regularly reviews the Holding company’s risk profile.
- The Group has set up objectives and policies to manage the risks that arise in connection with the Group’s activities. The risk
management framework and policies of the Group are guided by specific objectives to ensure that comprehensive and
adequate risk management tools and techniques are established to mitigate the salient risk elements in the operations of the
Group.
- The establishment of the overall financial risk management objectives is consistent and in tandem with the strategy to create
and enhance shareholders’ value, whilst guided by a prudent risk management framework.
- The structure of risk management function is closely aligned with the organisational structure of the Group.
- The risk management function is independent of the Group’s operations.

Risk management organisation
The Board Risk Management Committee of the Holding company comprises of two non-executive directors and one
executive director. One of the non-executive directors of the Holding company chairs the Risk Management Committee.
Specialized Committees comprising of Senior Management team members perform their functions in line with the
strategic direction set by the Board of the Holding company while ensuring that there is optimal balance between risk
reward trade-off. The Committees include:
Name of the sub-committee Chaired by
Credit Risk Management Committee (CRMC) President & CEO of the Holding company
Asset and Liability Management Committee (ALCO) President & CEO of the Holding company
Compliance & Operational Risk Management Committee (CORMC) President & CEO of the Holding company
CRMC is responsible to oversee credit risk activities on MBL basis while ensuring compliance with regulatory
requirements & internal policies. Its responsibilities also include to provide support and guide front lines in managing
their businesses, perform finance portfolio review, establish financing standards and benchmarks, maintain adequate
industry diversification and decide upon provisioning. It is also required to delegate financing approving powers &
prudential limits on large financing exposures. Credit Committee, a sub-committee of CRMC is the highest level body for
approval of financing transactions.
ALCO is responsible for reviewing the Asset and Liability structure of the MBL, monitoring the liquidity situation and
overall changing market scenario. Market and Liquidity risks are examined based on stress testing exercises and gap
analysis. ALCO is also responsible for monitoring policy rate movements and taking necessary steps across various
products to ensure that the overall profitability of the MBL is maximized without compromising on risk appetite. ALCO
also ensures that the MBL overall operations are fully compliant with regulatory framework for the business as provided
by the State Bank of Pakistan.
The CORMC is responsible for overseeing compliance risk by reviewing the adequacy of controls in place to meet
regulatory requirements. The Committee is responsibe for promoting compliance culture in MBL, facilitate in
implementation of Compliance Program and oversee Money Laundering and Financing Terrorism risk. In addition, the
Committee also oversees Operational Risk Framework by ensuring that policies and procedures are in place in all Key
risk areas and by reviewing Key Risk Indicators. The Committee also monitors level of compliance of major unresolved
and recurring issues pointed out in the Internal Audit, Shariah Audit and SBP Inspection Report.
The Group’s risk management, compliance, internal audit and legal departments support the risk management function.
The role of the risk management department is to assess, measure, identify risks and established risk mitigants through
a detailed policy and monitoring framework. The compliance department ensures that all the directives and guidelines
issued by the SBP are being complied with in order to mitigate the compliance risk. The internal audit and BRR
department reviews the compliance of internal control procedures with internal and regulatory standards.
47.1 Credit Risk
Credit risk arises from the potential that an obligor is either unwilling to perform on an obligation or its ability to perform
such obligations is impaired resulting in economic loss to the Group. This credit risk arises mainly from both direct
financing activities as well as contingent liabilities.
Credit risk management and structure
The Group manages credit risk by effective credit appraisal mechanism, approving and reviewing authorities, limit
structures, internal credit risk rating system, collateral management and post disbursement monitoring so as to ensure
prudent financing activities and sound financing portfolio under the umbrella of a comprehensive Credit Policy approved
by the Board of Directors of the Holding company. A comprehensive financing procedural manual approved by the
senior management is also in place. The Group also ensures diversification of its portfolio into different business
segments, products and sectors. Further, to avoid risk concentration; counterparty limits, counterparty group limits and
industry concentration limits are also established, monitored and assessed in the light of changing counterparty and
market conditions.
Watchlist procedure is also functioning which identifies financing with early warning indicators in respect of clients
having the potential to become non performing. The risk management function also monitors the non-performing
financing portfolio of the Bank and reports all significant matters to the Board Risk Management Committee.
The Group takes into account the risk mitigating effect of the eligible collaterals for the calculation of capital requirement for
credit risk. Use of Credit Risk Mitigation (CRM) resulted in the total credit risk weighted amount of Rs 323,222.054 million
(2017: Rs 281,851.833 million).
Thus, use of CRM resulted in capital adequacy ratio of the Group of 14.88%.

47.1.1 Segmental information
47.1.1.1 Due from financial institutions

Gross amount Non-performing
due from amount due from Provision held
financial institution financial institution
2018 2017 2018 2017 2018 2017
Rupees in ‘000

Private 109,073,265 80,764,938 41,566 41,566 41,566 41,566
184,856,166 147,270,787 41,566 41,566 41,566 41,566
47.1.1.2 Investment in debt securities
Non-performing
investments
2018 2017 2018 2017 2018 2017
Rupees in ‘000
Textile 119,287 124,919 119,287 124,919 119,287 124,919

Cement 500,000 - - - - -
Chemical and Pharmaceuticals 302,955 511,537 53,648 59,063 53,648 59,063
Construction 400,000 - - - - -
Automobile and transportation equipment 697,495 1,107,334 - - - -
Power (electricity), oil, gas and water 16,874,050 17,490,545 - - - -
Federal Government Securities 89,420,405 84,895,331 - - - -
Foreign Government Securities 4,788,337 3,376,124 - - - -
Transport, Storage and Communication 2,433,333 3,366,667 - - - -
Financial 2,773,756 1,072,173 - - - -
118,309,618 111,944,630 172,935 183,982 172,935 183,982
Non-performing
investments
2018 2017 2018 2017 2018 2017
Rupees in ‘000

Private 8,172,406 7,892,638 172,935 183,982 172,935 183,982
118,309,618 111,944,630 172,935 183,982 172,935 183,982

47.1.1.3 Islamic financing and related assets

Non-performing
amount
2018 2017 2018 2017 2018 2017
Rupeesin ‘000
Agriculture, Food, Forestry and Fishing 100,863,987 99,347,493 337,334 115,741 337,334 115,741
Textile 80,313,835 73,154,016 4,403,537 4,381,126 4,339,569 4,295,238
Chemical and Pharmaceuticals 35,419,207 25,785,330 73,863 74,674 66,613 67,200
Cement 13,143,707 7,989,820 2,596 2,596 2,596 2,596
Sugar 9,822,896 7,677,505 108,718 108,718 108,718 108,718
Footwear and Leather garments 1,461,258 1,563,463 230,006 215,346 230,006 189,571
Automobile and transportation equipment 13,157,986 6,069,674 631,912 633,665 628,164 633,665
Electronics and electrical appliances 7,080,952 4,905,864 57,416 84,716 57,416 84,716
Construction 16,756,289 12,566,562 36,443 72,733 36,443 72,733
Power (electricity), oil, gas and water 107,787,451 82,591,525 61,571 61,571 61,571 61,571
Wholesale and Retail Trade 26,093,978 22,878,395 162,006 150,387 158,631 148,522
Exports / Imports 10,670,601 6,698,794 141,889 148,550 141,889 141,889
Paper, board and packaging 7,781,634 8,770,697 99,905 99,905 97,890 97,890
Transport, Storage and Communication 29,244,784 21,823,823 186,773 22,896 153,325 17,626
Financial 2,072,494 1,700,821 - - - -
Insurance 215,174 169,317 - - - -
Services 5,195,566 3,743,898 35,174 36,069 31,015 34,762
Individuals 52,091,347 38,579,854 336,155 292,416 242,726 252,629
Others 3,090,617 2,716,740 79,944 105,020 77,624 101,664
522,263,763 428,733,591 6,985,242 6,606,129 6,771,530 6,426,731
Non-performing
amount
2018 2017 2018 2017 2018 2017
Rupeesin ‘000

Private 386,406,929 293,782,261 6,985,242 6,606,129 6,771,530 6,426,731
522,263,763 428,733,591 6,985,242 6,606,129 6,771,530 6,426,731

47.1.1.4 Contingencies and Commitments

2018 2017
Rupees in ‘000
Agriculture, Food, Forestry and Fishing 53,606,564 38,756,703

Textile 87,852,650 73,344,197
Chemical and Pharmaceuticals 33,391,962 14,653,168
Cement 7,360,211 9,754,650
Sugar 18,221,345 2,592,136
Footwear and Leather garments 1,923,709 1,526,181
Automobile and transportation equipment 10,106,979 7,993,863
Electronics and electrical appliances 10,741,174 2,948,147
Construction 20,621,063 9,040,615
Power (electricity), oil, gas and water 40,711,594 42,879,848
Wholesale and Retail Trade 9,470,597 10,563,245
Exports / Imports 4,873,264 6,259,977
Paper, board and packaging 6,474,923 4,524,567
Transport, Storage and Communication 3,911,071 17,175,204
Financial 114,660,376 88,762,266
Insurance - 55,716
Services 7,452,398 5,722,847
Individuals 5,376,859 14,160,774
Others 26,198,761 12,953,779
462,955,500 363,667,883
Public/ Government 35,103,690 19,646,280

Private 427,851,810 344,021,603
462,955,500 363,667,883
47.1.1.5 Concentration of Top 10 exposures
Top 10 exposures on the basis of total (funded and non-funded expsoures) aggregated to Rs 180,078 million
(2017: Rs 138,724 million) are as following:
2018 2017
Rupees in ‘000
Funded Exposure 145,056,016 123,155,434

Non Funded Exposure 35,655,566 15,568,755
Total Exposure 180,711,582 138,724,189
The sanctioned limits against these top 10 expsoures aggregated to Rs 205,451 million (2017: Rs 151,285 million). All
the exposures against these top 10 customers are classified as performing exposures.

47 .1.1.6 Islamic Financing and related assets - Province / Region-wise Disbursement & Utilization
2018
Rupees in ‘000

Punjab 299,569,251 299,569,251 - - - - -
Sindh 297,780,172 28,501,991 252,632,490 4,084,133 11,487,367 1,073,801 390
Balochistan 347,823 - - - 347,823 - -
Islamabad 111,318,054 - - - - 111,318,054 -
AJK including
Total 712,239,063 328,071,242 252,632,490 6,560,453 11,835,190 112,391,855 747,833
2017
Rupees in ‘000
Punjab 388,275,010 388,275,010 - - - - -
Sindh 192,484,786 4,089,940 184,682,144 3,033,842 665,336 13,460 64
Balochistan 21,245 - - - 21,245 - -
Islamabad 25,360,086 - - - - 25,360,086 -
AJK including
Total 608,619,038 392,364,950 184,682,144 5,313,835 686,581 25,373,546 197,982
47.1.2 Credit Risk - General Disclosures
The Group has adopted Standardised Approach of Basel Accord for calculation of capital charge against credit risk.
Therefore, risk weights for the credit risk related assets (on-balance sheet and off-balance sheet - market and non market
related exposures) are assigned on basis of standardised approach.
The Group is committed to further strengthen its risk management framework which will enable the Group to move ahead
for adopting Foundation Internal Ratings Based (IRB) approach of Basel II. Meanwhile, none of the Group's assets class
is subject to the Foundation IRB or advanced IRB approaches.
47.1.2.1 Credit Risk: Disclosures for portfolio subject to the Standardised Approach
Under standardised approach the capital requirement is based on the credit rating assigned to the
counterparties by the External Credit Assessment Institutions (ECAIs) duly recognised by the SBP for capital
adequacy purposes. In this connection, the Group utilises the credit ratings assigned by ECAIs and has
recognised agencies such as PACRA (Pakistan Credit Rating Agency) and JCR-VIS (Japan Credit Rating
Company - Vital Information System) which are also recognised by the SBP.
In case of foreign currency exposures against banks, ratings assigned by S&P, Fitch and Moody’s have been
applied. In case of exposure against banks, some banks have multiple ratings but those ratings do not result
in mapping with different risk weights.
Types of Exposure and ECAI’s used

2018
Standard &
Exposures JCR-VIS PACRA Fitch Moody
Poors (S&P)
Corporate √ √ √ √ √
Banks √ √ √ √ √
Public Sector Entities √ √ - - -

Use of ECAI Ratings
The Group prefers solicited ratings over unsolicited ratings at all times, owing to the greater degree of accuracy (in general) associated
with solicited ratings. Unsolicited ratings may only be used in cases where a solicited rating is not available.
Mapping to SBP Rating Grades
The alignment of the Alphanumerical scale of each agency used with risk buckets is as per instructions laid down by SBP under
Basel III requirements.
47.1.2.2 Credit exposures subject to standardised approach
2018 2017
Amount Deduction Amount Deduction

Exposures Credit Risk Net amount Credit Risk Net amount
Outstanding Outstanding
Management Management
Rupees in ‘000
Banks
20% 194,042,282 143,659,107 50,383,175 151,721,981 120,907,869 30,814,112
50% 985,696 - 985,696 1,172,485 - 1,172,485
150% 83,328 - 83,328 48,780 - 48,780
Unrated 451,096 - 451,096 286,644 - 286,644
Sovereigns
0% 173,195,662 30,719,089 142,476,573 171,965,673 42,036,396 129,929,277
20% 276,755 - 276,755 - - -
50% 2,051,928 - 2,051,928 1,728,346 - 1,728,346
100% 151,309 - 151,309 111,499 - 111,499
Public Sector
entities
20% 32,314,645 13,052,617 19,262,028 25,954,044 8,191,220 17,762,824
50% - - - - - -
Unrated (50%) 91,677,679 91,947,049 - 50,058,614 46,848,981 3,209,633
Corporate
20% 93,937,224 1,784,000 92,153,224 46,789,540 5,342,857 41,446,683
50% 55,606,232 2,329,667 53,276,565 33,480,160 2,046,356 31,433,804
100% 3,258,718 - 3,258,718 3,515,549 - 3,515,549
150% 1,019,233 - 1,019,233 - - -
Unrated 1 (100%) 92,818,644 4,798,516 88,020,128 91,498,915 2,485,245 89,013,670
Unrated 2 (125%) 57,987,218 2,624,655 55,362,563 95,068,947 36,561,120 58,507,827
Retails
75% 60,304,873 10,700,598 49,604,275 43,943,059 7,962,873 35,980,186
Total 860,162,522 301,615,298 558,816,594 717,344,236 272,382,917 444,961,319
47.1.2.3 Credit Risk: Disclosures with respect to Credit risk mitigation for Standardised approach and IRB
The Group obtains capital relief for both its on-balance and off-balance sheet non-market related exposures by using
simple approach for credit risk mitigation (CRM). Off-balance sheet items under the simplified standardised approach
are converted into credit exposure equivalents through the use of credit conversion factors. Under the standardised
approach the Group has taken advantage of the cash collaterals available with the Group in the form of security deposits,
cash margins, certificates of islamic investment, monthly mudaraba certificate, saving accounts, guarantees, shares and
Government securities.
Valuation and management of eligible collaterals for CRM is being done in accordance with the conditions laid down by
the State Bank of Pakistan. Eligible collaterals for CRM purposes do not expose the Group to price risk as they are in the
form of cash / cash equivalent collaterals. Since eligible collaterals for CRM purposes are all in the form of cash / cash
equivalent collaterals, they generally do not pose risk to the Group in terms of change in their valuation due to changes
in the market condition.
The credit equivalent amount of an off-balance sheet market related foreign exchange contracts are determined by using
the current exposure (mark to market) method.

The Group mainly takes the benefit of CRM against its claims on banks, corporate and retail portfolio. Under
the standardized approach for on-balance sheet exposures, Rs 195,562.402 million of exposure on banks is
subject to the CRM of Rs 143,659.107 million. The corporate portfolio of Rs 304,627.269 million is subject to
the CRM of Rs 11,536.838 million whereas claims on retail portfolio of Rs 60,304.873 million is subject to CRM
of Rs 10,700.598 million. The total benefit of Rs 301,663.669 million was availed through CRM against total
on-balance sheet exposure of Rs 923,628.897 million.
Under off-balance sheet, non-market related exposures; total benefit of Rs 17,640.547 million was availed
by the Bank through CRM against total off-balance sheet, non-market related exposure of Rs 385,997.643
million.
In the year 2018, total CRM benefit was Rs 319,304.216 million as against amount of Rs 281,144.077
million in year 2017.
47.1.2.4 Credit concentration risk
Credit concentration risk arises mainly due to concentration of exposures under various categories viz.,
industry, geography, and single / group borrower obligor. Within credit portfolio, as a prudential measure
aimed at better risk management and avoidance of concentration of risks, the SBP has prescribed
regulatory limits on banks’ maximum exposure to single and group obligors. Within the SBP limits, the
Group has further defined limits to avoid excessive concentration of portfolio.
47.2 Market risk
Market risk is the risk that the fair value or cash flows of a financial instrument will fluctuate due to changes in market
prices. Market risk reflects yield rate risk, currency risk and other price risks. Banks could be adversely affected by
movements in market rates or prices such as benchmark rates, deposit rates, foreign exchange rates, equity prices
and market conditions resulting in a loss to earnings and capital.
47.2.1 Equity position in the banking and trading book
The Group classifies and values its investment portfolio in accordance with the directives of SBP as stated
in note 6.4 to these consolidated financial statements.
Trading book
Held for trading and available for sale securities with trading intent;
- They are marked to market daily;
- Any valuation difference is charged / credited to the profit and loss account in case of held for trading
securities and to surplus on revaluation of investments - net of tax under equity in case of available for sale
securities.
Banking book
Assets outside trading book are part of the banking book. These may include assets classified as
available for sale and held to maturity investments.
47.2.2 Balance sheet split by trading and banking books
2018 2017
Book Book Total Book Book Total
Rupees in ‘000
Cash and balances with

treasury banks 65,022,412 - 65,022,412 64,556,409 - 64,556,409
Balances with other banks 8,277,146 - 8,277,146 4,940,090 - 4,940,090
Due from financial institutions - net 184,814,600 - 184,814,600 147,229,221 - 147,229,221
Investments - net 121,881,948 5,233,428 127,115,376 116,689,122 6,471,779 123,160,901
Islamic financing and
related assets - net 512,564,522 - 512,564,522 419,929,149 - 419,929,149
Fixed assets 13,228,398 - 13,228,398 11,464,973 - 11,464,973
Intangible assets 644,956 - 644,956 529,613 - 529,613
Deferred tax asset 868,024 - 868,024 - - -
Other assets - net 29,215,973 - 29,215,973 21,265,777 - 21,265,777
936,517,979 5,233,428 941,751,407 786,604,354 6,471,779 793,076,133

The Group uses a number of methods to monitor and control market risk exposures. One of the major tools used by the Group
to monitor and limit market risk is Value at Risk (VaR). VaR is defined as the estimated loss that will arise on a position or a
portfolio over a particular (holding) period of time from an adverse market movement with a specific probability (confidence
level). The VaR model used by the Group takes 99% confidence level and assumes a 1 to 10 days holding period whilst using
the historical simulation taking the data of the last three years. Daily VaR figures are circulated to the senior management and
regular summaries are reported in ALCO meetings.
The VaR reports are complemented by various other position and sensitivity limit structures, including stress, sensitivity, gap
and scenario analysis. The capital charge for market risk has been calculated by using Standardized Approach.
47.2.3 Foreign exchange risk
The foreign exchange risk is defined as the current or prospective risk to earnings and capital arising from adverse
movements in currency exchange rates. It refers to the impact of adverse movement in currency exchange rates on the
value of open foreign currency position. The objectives of the foreign exchange risk management is to minimise the
adverse impact of foreign exchange rate movements on the assets and liabilities mismatch (tenor and position) and
maximise their earnings.
Whenever a commercial bank deals in foreign currency, it is exposed to risk of exchange rate. The Group's assets and
liabilities in foreign currencies give rise to foreign exchange risk which has to be managed by the Group; this risk is
mitigated by using different hedging techniques. Hedging is a way used by a bank to eliminate or minimize its risk
exposures. Hedging can be done using different ways like gap analysis, hedging (forwards), assigning limits in terms
of amount, tenor, currency, product, countries, counterparties etc. The Group limits its currency exposure to the extent
of statutory net open position prescribed by the SBP except in the cases where exemption is provided by the SBP.
Foreign exchange open and mismatch positions are controlled through close monitoring and are marked to market on
a daily basis.
The analysis below represents the concentration of the Group's foreign currency risk for on and off balance sheet
financial instruments:
2018
exposure
Rupees in ‘000
Pakistan Rupees 908,238,899 834,865,732 (29,777,104) 43,596,063

Japanese Yen 34,146 45 (28,994) 5,107
Euro 1,715,095 3,876,456 2,119,253 (42,108)
Canadian Dollars 165,561 1,387 (163,246) 928
Swiss Francs 4,867 - (5,641) (774)
Saudi Riyal 18,551 - - 18,551
Swedish Korona 436 - - 436
Thailand Bhat 1,086 - - 1,086
Norwegian Krone 1,428 - - 1,428
Danish Krone 1,046 - - 1,046
Chinese Yuan 269,948 264,548 - 5,400
Total foreign currency exposure 33,512,508 63,308,736 29,777,104 (19,124)

2017
exposure
Rupees in ‘000
Pakistan Rupees 761,298,701 696,926,524 (25,985,522) 38,386,655

Japanese Yen 260,286 186,571 (73,560) 155
Euro 1,717,815 3,623,082 1,921,584 16,317
Canadian Dollars 11,324 994 (11,006) (676)
Swiss Francs 212,289 208,614 (3,394) 281
Saudi Riyal 7,865 3,680 - 4,185
Swedish Korona 1,942 - - 1,942
Thailand Bhat 311 - - 311
Norwegian Krone 653 - - 653
Chinese Yuan 2,601 - - 2,601
Total foreign currency exposure 31,777,432 57,740,036 25,985,522 22,918
2018 2017
book book book book
Rupees in ‘000
Impact of 1% change in foreign exchange rates
- Consolidated Profit and Loss Account - 992 - 490

- Consolidated Other Comprehensive Income - - - -
47.2.4 Equity position risk
Equity position risk is defined as the risk to earnings or capital arising from adverse changes in value of equity
portfolios of Group. The limits assigned to various individual scripts and total portfolio investments are fixed as per the
guidelines issued by the SBP. The Group invests in only Shariah compliant equities as advised by the Resident
Shariah Board Member.
2018 2017
book book book book
Rupees in ‘000
Impact of 5% change in equity prices
- Consolidated Profit and Loss Account - - - -

- Consolidated Other Comprehensive Income - 205,492 - 222,537

47.2.5 Yield / profit rate risk
Yield risk occurs when there is a mismatch between positions, which are subject to profit rate alterations within a
particular time period. The Group’s financing, placement and investment activities give rise to profit rate risk. The
effect of changes in profit rate is on the Group’s income, and resultant impact is on the Group’s net worth.
Profit rate risk is primarily managed by monitoring the rate sensitive gaps and by having the pre-approved limits for
repricing buckets. ALCO is the supervising body for adherence with these, complemented by the monitoring of
sensitivity of the Group’s financial assets and liabilities to various scenarios.
The Group estimates changes in the market value of equity due to changes in the yield rates on on-balance sheet
positions and their impact on capital adequacy ratio by conducting stress tests. It also assesses risk on earnings of
the Group by various shocks.
2018 2017
book book book book
Rupees in ‘000
Impact of 1% change in discount rates
- Consolidated Profit and Loss Account 854,290 - 627,006 -

- Consolidated Other Comprehensive Income - - - -
47.2.6 Mismatch of yield rate sensitive assets and liabilities 2018

Effective Over 1 Over 3 Over 6 Over 1 Over 2 Over 3 Over 5 Non-yield
yield Total Upto 1 to 3 to 6 Months to to 2 to 3 to 5 to 10 Above 10 bearing financial
rate % Month Months Months 1 Year Years Years Years Years Years instruments
Rupees in ‘000
Assets

Due from financial and other institutions 6.28 184,814,600 112,255,476 63,354,736 9,204,388 - - - - - - -
Investments 5.65 127,115,376 2,304,228 34,162,300 13,928,470 2,233,979 16,478,405 42,433,712 4,195,450 1,667,139 276,777 9,434,916
Islamic financing and related assets 7.16 512,564,522 179,575,584 92,482,198 69,817,791 11,757,760 6,274,079 9,389,053 15,009,074 2,074,916 - 126,184,067
Other assets - 25,121,364 - - - - - - - - - 25,121,364
922,915,420 294,445,663 189,999,234 92,950,649 13,991,739 22,752,484 51,822,765 19,204,524 3,742,055 276,777 233,729,530
Liabilities
Bills payable - 23,750,543 - - - - - - - - - 23,750,543

Due to financial institutions 4.01 36,407,811 35,371,084 - - - - - - 1,036,727
Deposits and other accounts 2.54 785,444,592 470,707,108 24,158,618 4,228,460 673,000 - - - - - 285,677,406
Sub-ordinated Sukuk 8.55 14,000,000 7,000,000 7,000,000 - - - - - - - -
884,434,049 513,078,192 31,158,618 4,228,460 673,000 - - - - - 335,295,779
On-balance sheet gap 38,481,371 (218,632,529) 158,840,616 88,722,189 13,318,739 22,752,484 51,822,765 19,204,524 3,742,055 276,777 (101,566,249)

- Deferred tax asset 868,024
18,835,987
- Deferred tax liabilities -
13,740,419

Forward Lending 74,321,214 - - - - - - - - - 74,321,214
Forward borrowings 44,544,110 - - - - - - - - - 44,544,110
Total yield risk rate sensitivity gap (218,632,529) 158,840,616 88,722,189 13,318,739 22,752,484 51,822,765 19,204,524 3,742,055 276,777 (101,566,249)
Cumulative yield risk rate sensitivity gap (218,632,529) (59,791,913) 28,930,276 42,249,015 65,001,499 116,824,264 136,028,788 139,770,843 140,047,620 38,481,371

2017
Effective Over 1 Over 3 Over 6 Over 1 Over 2 Over 3 Over 5 Non-yield
yield Total Upto 1 to 3 to 6 Months to to 2 to 3 to 5 to 10 Above 10 bearing financial
rate % Month Months Months 1 Year Years Years Years Years Years instruments
Rupees in ‘000
Assets

Due from financial institutions 5.77 147,229,221 23,868,925 49,716,251 4,376,876 69,267,169 - - - - - -
Investments 5.39 123,160,901 7,027,190 6,988,489 48,745,895 - 30,698,206 15,126,496 1,124,924 2,221,122 - 11,228,579
Islamic financing and related assets 6.57 419,929,149 41,964,180 152,729,213 83,155,120 16,726,426 3,679,676 6,921,316 13,278,112 1,016,739 2,690,280 97,768,087
Other assets - 19,506,096 - - - - - - - - - 19,506,096
779,321,866 72,972,200 209,433,953 136,277,891 85,993,595 34,377,882 22,047,812 14,403,036 3,237,861 2,690,280 197,887,356
Liabilities
Bills payable - 17,175,035 - - - - - - - - - 17,175,035

Due to financial institutions 4.10 36,813,295 16,390,656 8,731,443 10,869,365 - - - - - - 821,831
Deposits and other accounts 2.30 667,173,368 435,655,251 - - - - - - - - 231,518,117
Sub-ordinated Sukuk 6.73 7,000,000 - 7,000,000 - - - - - - - -
On-balance sheet gap 745,078,227 452,045,907 15,731,443 10,869,365 - - - - - - 266,431,512
34,243,639 (379,073,707) 193,702,510 125,408,526 85,993,595 34,377,882 22,047,812 14,403,036 3,237,861 2,690,280 (68,544,156)

13,754,267
- Deferred Tax liabilities 230,787
9,588,333

Forward Lending 75,272,094 - - - - - - - - - 75,272,094
Forward borrowings 49,286,572 - - - - - - - - - 49,286,572
Total yield risk rate sensitivity gap (379,073,707) 193,702,510 125,408,526 85,993,595 34,377,882 22,047,812 14,403,036 3,237,861 2,690,280 (68,544,156)
Cumulative yield risk rate sensitivity gap (379,073,707) (185,371,197) (59,962,671) 26,030,924 60,408,806 82,456,618 96,859,654 100,097,515 102,787,795 34,243,639
The Group takes on exposure to the effects of fluctuations in the prevailing levels of market profit rates on both its fair value and cash flow risks.
Profit margins may increase as a result of such changes but may reduce to losses in the event that unexpected movement arise.
47.3 Liquidity risk
Liquidity risk is the potential for loss to the Group arising from either its inability to meet its obligations or to fund increases in assets as they fall
due without incurring an unacceptable cost.
The Holding company’s Board of Directors sets the policy for managing liquidity risk and entrusts accountability for supervision of the
implementation of this strategy to senior management. Senior management exercises its responsibilities for managing market & liquidity risk
through various committees including the Asset & Liability Management Committee (ALCO). Treasury department manages the liquidity position
on a daily basis. The main approach of managing the liquidity risk is to make certain that it will always have adequate liquidity to meet its liabilities
when they are due in normal and stressed scenarios without incurring any untoward expenditure or risking reputational harm. ALCO monitors the
maintenance of liquidity ratios, depositor's concentration both in terms of the overall funding mix and avoidance of undue reliance on large
individual deposits. Regular liquidity stress testing is conducted under a variety of scenarios covering both normal and more severe market
conditions.

308
47.3.1 Maturities of assets and liabilities based on contractual maturities
2018
1 Day 7 Day 14 Days 1 month 2 months 3 months months to 1 Years 2 Years 3 years 5years 10 years years
MEEZAN BANK LIMITED

Rupees in ‘000
Assets
Cash and balances with treasury banks 65,022,412 21,457,396 14,521,672 14,521,672 14,521,672 - - - - - - - - -
Balances with other banks 8,277,146 4,138,573 4,138,573 - - - - - - - - - - -
Due from financial institutions 184,814,600 - 19,205,698 53,240,917 39,808,862 43,516,511 19,838,225 9,204,387 - - - - - -
Investments 127,115,376 908,933 866,310 1,098,195 2,704,893 3,006,392 28,341,656 1,159,534 4,320,420 18,128,237 49,530,621 7,787,206 7,770,924 1,492,055
Fixed assets 13,228,398 53,058 318,350 371,409 848,934 261,616 115,691 357,132 695,914 1,277,800 1,082,355 1,493,090 1,485,685 4,867,364
Deferred tax assets 868,024 2,412 14,473 16,885 38,595 72,366 72,366 217,099 433,828 - - - - -
Other assets 29,215,973 60,968 961,099 951,320 2,663,445 4,530,913 2,444,558 5,616,454 9,484,432 702,102 691,425 1,105,087 - 4,170
941,751,407 170,542,417 47,872,661 74,972,819 85,569,894 80,252,967 75,547,095 87,763,291 36,127,020 40,521,319 72,725,112 71,289,923 75,535,331 23,031,558
Liabilities
Bills payable 23,750,543 8,075,185 5,225,119 5,225,119 5,225,120 - - - - - - - - -
Due to financial institutions 36,407,811 496,366 12,470,460 110,411 404,595 12,871,833 4,496,541 4,496,541 - - 627,074 107,610 326,380 -
Sub-ordinated Sukuk 14,000,000 - - - - - - - - - - - 7,000,000 7,000,000
Deferred Tax liabilities - - - - - - - - - - - - - -
Other liabilities 38,571,522 127,736 1,355,971 1,413,642 3,715,092 6,102,573 3,994,583 10,462,514 9,404,967 575,195 564,506 850,936 - 3,807
898,174,468 582,059,128 51,628,775 24,222,028 38,887,773 48,395,690 28,786,054 35,531,626 36,538,847 6,071,468 7,613,101 12,772,993 18,663,178 7,003,807
Net assets 43,576,939 (411,516,711) (3,756,114) 50,750,791 46,682,121 31,857,277 46,761,041 52,231,665 (411,827) 34,449,851 65,112,011 58,516,930 56,872,153 16,027,751

Reserves 15,185,565

Non-Controlling Interest 1,006,434
43,576,939
2017
1 Day 7 Day 14 Days 1 month 2 months 3 months months to 1 Years 2 Years 3 years 5years 10 years years
Rupees in ‘000
Assets
Cash and balances with treasury banks 64,556,409 64,556,409 - - - - - - - - - - - -

Balances with other banks 4,940,090 4,940,090 - - - - - - - - - - - -
Due from financial institutions 147,229,221 - - 20,270,922 3,598,003 34,396,258 15,319,993 4,376,876 69,267,169 - - - - -
Investments 123,160,901 2,263,943 915,382 1,155,444 2,691,013 671,197 1,371,396 1,924,537 41,948,167 36,297,159 19,376,073 2,885,636 4,203,029 7,457,925
Fixed assets 11,464,973 4,256 25,537 29,793 68,098 255,966 127,983 376,536 681,898 1,189,221 990,456 1,406,507 1,573,235 4,735,487
Deferred tax assets - - - - - - - - - - - - - -
Other assets 21,265,777 283,781 787,730 830,768 2,446,637 2,998,659 1,744,229 3,527,374 5,497,387 1,204,478 647,354 1,143,384 151,975 2,021
793,076,133 205,178,075 4,780,857 25,831,850 19,691,182 64,379,561 52,706,220 70,634,156 127,815,366 56,285,512 42,742,997 39,737,073 56,617,496 26,675,788
Liabilities
Bills payable 17,175,035 5,839,511 3,778,508 3,778,508 3,778,508 - - - - - - - - -
Due to financial institutions 36,813,295 1,343,378 14,361,832 747,745 430,524 5,795,156 2,936,287 10,869,365 - - 329,008 - - -
Sub-ordinated Sukuk 7,000,000 - - - - - - - - - - 7,000,000 - -
Deferred Tax liabilities 230,787 643 3,848 4,489 10,261 19,240 19,240 57,721 115,345 - - - - -
Other liabilities 26,274,075 317,742 996,143 1,072,590 3,002,998 3,837,056 2,545,604 6,007,314 5,577,287 1,147,152 589,944 1,026,398 151,975 1,872
754,666,560 505,067,625 29,461,870 25,095,907 40,231,885 22,617,471 17,795,676 35,714,684 32,705,075 8,574,211 6,369,139 20,543,998 10,487,147 1,872
Net assets 38,409,573 (299,889,550) (24,681,013) 735,943 (20,540,703) 41,762,090 34,910,544 34,919,472 95,110,291 47,711,301 36,373,858 19,193,075 46,130,349 26,673,916

Reserves 13,393,125
38,409,573
Current and Savings deposits have been classified under maturity upto one day as these do not have any contractual maturity.
ANNUAL REPORT 2018

309
47.3.2 Maturities of assets and liabilities based on expected maturities
2018
Rupees in ‘000
Assets

Due from financial and other institutions 184,814,600 112,255,476 63,354,736 9,204,388 - - - - - -
Investments 127,115,376 5,578,332 31,348,049 1,159,534 4,320,420 18,128,237 49,530,621 7,787,206 7,770,924 1,492,053
Operating fixed assets 13,228,398 1,591,752 377,307 357,132 695,914 1,277,800 1,082,355 1,493,090 1,485,685 4,867,363
Deferred tax assets 868,024 71,995 144,733 217,098 434,198 - - - - -
Other assets 29,215,973 4,636,831 6,975,470 5,616,453 9,484,433 702,102 691,425 1,105,087 - 4,172
941,751,407 279,416,252 190,110,086 119,678,142 69,443,685 40,521,319 72,725,112 71,289,923 75,535,331 23,031,557
Liabilities
Bills payable 23,750,543 23,750,543 - - - - - - - -
Due to financial institutions 36,407,811 13,481,832 17,368,374 4,496,541 - - 627,074 107,610 326,380 -
Deposits and other accounts 785,444,592 125,678,932 86,607,369 54,888,366 75,663,743 74,127,863 59,084,393 95,325,715 214,068,211 -
Sub-ordinated Sukuk 14,000,000 - - - - - - - 7,000,000 7,000,000
Other liabilities 38,571,522 6,652,805 10,056,792 10,462,515 9,404,967 575,195 564,506 850,936 - 3,806
898,174,468 169,564,112 114,032,535 69,847,422 85,068,710 74,703,058 60,275,973 96,284,261 221,394,591 7,003,806
Net assets 43,576,939 109,852,140 76,077,551 49,830,720 (15,625,025) (34,181,739) 12,449,139 (24,994,338) (145,859,260) 16,027,751

Reserves 15,185,565
Non-controlling interest 1,006,434
43,576,939
2017
Rupees in ‘000
Assets

Due from financial and other institutions 147,229,221 23,868,925 49,716,251 4,376,876 69,267,169 - - - - -
Investments 123,160,901 10,948,094 2,042,492 1,924,442 41,943,268 36,304,069 19,375,122 2,885,494 4,202,907 3,535,013
Fixed assets 11,464,973 1,383,506 327,944 310,409 604,869 1,110,627 940,753 1,297,752 1,291,315 4,197,798
Deferred tax assets - - - - - - - - - -
Other assets 21,265,777 3,553,189 3,682,756 4,274,803 7,595,929 913,219 369,879 724,027 151,975 -
793,076,133 169,112,965 149,140,231 102,174,129 156,532,759 55,916,705 42,371,220 39,300,418 56,314,562 22,213,144
Liabilities
Bills payable 17,175,035 17,175,035 - - - - - - - -
Due to financial institutions 36,813,295 16,637,068 8,977,855 10,869,364 - - 329,008 - - -
Deposits and other accounts 667,173,368 101,814,398 56,542,191 47,872,723 68,141,962 65,615,388 50,085,657 83,336,610 140,437,104 53,327,335
Sub-ordinated Sukuk 7,000,000 - - - - - - - 7,000,000 -
Deferred Tax liabilities 230,787 - - - 57,697 57,697 57,697 57,696 - -
Other liabilities 26,274,075 4,311,897 4,105,861 4,904,970 2,713,233 1,786,672 1,234,721 2,452,713 4,764,008 -
754,666,560 139,938,398 69,625,907 63,647,057 70,912,892 67,459,757 51,707,083 85,847,019 152,201,112 53,327,335
Net assets 38,409,573 29,174,567 79,514,324 38,527,072 85,619,867 (11,543,052) (9,335,863) (46,546,601) (95,886,550) (31,114,191)

Reserves 13,393,125
38,409,573
Regarding behaviour of non-maturity deposits (non-contractual deposits), the Bank has carried out a behavioural study using
the Value at Risk (VaR) methodology based on 5 years data. On the basis of its findings, 29.3% of current accounts and 28.6%
of saving accounts are bucketed into 'Upto 1-Year maturity' whereas, 70.7% of current accounts and 71.4% of savings accounts
are bucketed into maturities of above 1-Year.

47.4 Operational risk
The Group uses Basic Indicator Approach (BIA) for assessing the capital charge for operational risk. Under BIA the capital charge
is calculated by multiplying average positive annual gross income of the Bank over past three years with 15% as per guidelines
issued by SBP under Basel II.
To reduce losses arising from operational risk, the Group has strengthened its risk management framework by developing policies,
strategies, guidelines and manuals. It also includes set up of functions like operational risk management, prevention of fraud and
forgery and information security function, defining responsibilities of individuals, implementing 4 eye principle, enhancing security
measures, improving efficiency and effectiveness of operations, outsourcing and improving quality of human resources through
trainings and development.
48 PROFIT / (LOSS) DISTRIBUTION TO DEPOSITORS' POOLS AND SPECIFIC POOLS
48.1 The Holding company managed following general and specific pools during the year:
2018
Amount of
Profit rate return
period (Savings and
Fixed) - Average
deposits
PKR Pool Monthly 7.06% 50% 13,314,826 3.91% 10% 1,388,628

USD Pool Monthly 3.81% 75% 720,723 0.95% - -
GBP Pool Monthly 1.18% 90% 20,169 0.12% - -
EUR Pool Monthly 0.17% 90% 1,637 0.02% - -
2017
Amount of
Profit rate return
period (Savings and
Fixed) - Average
deposits
PKR Pool Monthly 6.42% 50% 10,872,732 3.65% 14% 1,491,157
USD Pool Monthly 3.09% 75% 424,879 0.77% - -
GBP Pool Monthly 1.32% 90% 19,505 0.13% - -
EUR Pool Monthly 0.66% 90% 5,885 0.06% - -
2018
Amount of
Profit Rate and
announcement
transferred to
period
deposits




2017
Amount of
Profit Rate and
announcement
transferred to
period
deposits



48.2 Following weightages have been assigned to different major products under the General pools during the year:
Percentage to Total Modaraba Maximum Minimum Maximum Minimum

based Deposits Weightage Weightage Weightage Weightage
2018 2017 2018 2018 2017 2017
PKR Pool
Saving Accounts 24.05% 23.37% 0.67 0.57 0.67 0.66
Meezan Bachat Account 18.69% 18.57% 0.88 0.57 0.88 0.66
Karobari Munafa Account 10.11% 10.83% 1.36 0.57 1.34 0.66
Certificate of Islamic Investment Plus 10.39% 12.46% 1.72 0.70 1.49 1.16
Meezan Aamdan Certificate 7.80% 8.71% 1.72 1.19 1.67 1.57
USD Pool
Saving Accounts 4.64% 3.73% 0.45 0.45 0.45 0.45
Certificate of Islamic Investment 2.33% 1.71% 1.35 1.35 1.35 0.77
GBP Pool
Saving Accounts 0.49% 0.46% 0.27 0.27 0.27 0.27
EUR Pool
Saving Accounts 0.27% 0.29% 0.27 0.27 0.27 0.27
48.3 Allocation of Income and Expenses to Depositors' Pools

Following are material items of revenues, expenses, gains and losses
2018 2017
Rupees in ‘000
Profit / return earned on islamic financing and related assets, investments and placements 46,724,070 35,375,577
Other Income (including other charges) 2,717,152 2,209,095
Directly related costs attributable to pool (1,431,931) (959,646)

49 GENERAL
Comparative information has been re-classified, re-arranged or additionally incorporated in these consolidated financial
statements, wherever necessary to facilitate comparison and better presentation.
50. NON-ADJUSTING EVENT
The Board of Directors of the Holding company in its meeting held on February 21, 2019 has announced final cash dividend of
Rs 2 per share (20%). The financial statements for the year ended December 31, 2018, do not include the effect of this
appropriation which will be accounted for in the financial statements for the year ending December 31, 2019.
51. RECLASSIFICATIONS
As a result of change in forms for the preparation of financial statements issues by SBP and for better presentation, corresponding
figures have been rearranged wherever necessary, for purposes of comparison, which are as follows:
Transfer from Transfer to Rupees in '000

Aggregate
Deposits and other accounts - Current accounts Bills payable - In Pakistan
(non-remunerative) 6,006,942
Other Liabilities - Provision against off Other assets - Provision against
balance sheet obligations other assets - Acceptances 35,451
Profit / return earned on Islamic financing
and related assets, investments and placements
and income from dealing in foreign currencies Profit on deposits and other dues expensed 410,908
Other income Provisions & write offs - net 23,553
Other reversals of provision Provisions & write offs - net 13,524
52. DATE OF AUTHORISATION
These financial statements were authorised for issue on February 21, 2019 by the Board of Directors of the Holding company.


Consolidated Statement Showing Written-Off Financing or any Other
Financial Relief of Rupees 500,000 or Above (Annexure 1)
During the year ended December 31, 2018
Rupees in ‘000
Consolidated Statement showing written-off financing or any other financial relief of Rupees 500,000 and above during the year ended
December 31, 2018.
S. Name and Father's Outstanding liabilities as at January 1, 2018 Principal Profit Other Total
No. address of the CNIC No. Name Principal Profit Others Total written-off written-off Financial (9+10+11)
borrower (5+6+7) Relief
1 2 3 4 5 6 7 8 9 10 11 12
1 Muhammad 35202-0278894-1 M.A. Rauf Mian 11,765 17,906 913 30,584 - 18,217 913 19,130
Anjum
Rauf Mian
House No. 161/2,

Block U, Defence
Housing Authority,
Lahore
2 Abdul Rasheed 42301-5380243-9 Saleh 637 447 139 1,223 - 447 139 586
Mohammad
B-603, 7th Floor,
Al Habib Pride,
Plot # 5, CL-8,
Civil Lines,
Karachi
3 Asif Haider 42301-1275355-3 Syed - 3,543 268 3,811 - 1,790 - 1,790

Mubeen
Flat # A-202, Zaidi
Second floor,
Sachi Tower,
Muhammad Ali
Jinnah Road,
Karachi
12,402 21,896 1,320 35,618 - 20,454 1,052 21,506

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Additional Information
Pattern of Shareholding 318
Categories of Shareholders 319
Guidelines and Policies 320
Correspondent Banking Network 326
Branch Network 332
Glossary 346
Dividend Mandate Form 355
Proxy Form 357
Pattern of Shareholding
No. of No. of Shares ‘Shares held’ Percentage
Shareholders From To
541 1 100 9,478 0.0008%
279 101 500 77,205 0.0066%
214 501 1000 151,032 0.0129%
508 1001 5000 1,236,470 0.1058%
142 5001 10000 971,296 0.0831%
81 10001 15000 966,988 0.0827%
43 15001 20000 748,864 0.0640%
39 20001 25000 890,360 0.0762%
34 25001 30000 939,571 0.0804%
15 30001 35000 483,362 0.0413%
14 35001 40000 519,900 0.0445%
12 40001 45000 504,515 0.0432%
13 45001 50000 625,361 0.0535%
9 50001 55000 472,176 0.0404%
8 55001 60000 454,063 0.0388%
5 60001 65000 308,827 0.0264%
4 65001 70000 273,106 0.0234%
7 70001 75000 508,757 0.0435%
10 75001 80000 776,397 0.0664%
6 80001 85000 492,447 0.0421%
3 85001 90000 264,068 0.0226%
5 90001 95000 465,154 0.0398%
4 95001 100000 397,115 0.0340%
4 100001 105000 408,951 0.0350%
2 105001 110000 215,680 0.0184%
7 110001 115000 788,951 0.0675%
1 115001 120000 116,600 0.0100%
3 120001 125000 365,300 0.0312%
5 125001 130000 634,907 0.0543%
3 130001 135000 401,500 0.0343%
4 135001 140000 557,157 0.0477%
1 140001 145000 142,300 0.0122%
4 145001 150000 589,196 0.0504%
1 150001 155000 150,414 0.0129%
2 155001 160000 317,063 0.0271%
2 160001 165000 325,000 0.0278%
2 165001 170000 332,347 0.0284%
1 170001 175000 174,900 0.0150%
1 180001 185000 180,730 0.0155%
2 185001 190000 375,055 0.0321%
1 195001 200000 198,000 0.0169%
1 200001 205000 204,050 0.0175%
1 205001 210000 205,500 0.0176%
2 210001 215000 428,300 0.0366%
1 215001 220000 220,000 0.0188%
3 220001 225000 665,018 0.0569%
2 230001 235000 464,497 0.0397%
1 235001 240000 235,405 0.0201%
2 255001 260000 514,710 0.0440%
1 265001 270000 268,180 0.0229%
2 270001 275000 543,924 0.0465%
3 285001 290000 860,060 0.0736%
1 290001 295000 293,250 0.0251%
1 295001 300000 295,581 0.0253%
1 330001 335000 331,420 0.0283%
1 340001 345000 340,600 0.0291%
1 350001 355000 353,152 0.0302%
1 365001 370000 365,500 0.0313%
2 380001 385000 766,439 0.0656%
1 385001 390000 389,460 0.0333%
1 400001 405000 400,200 0.0342%
1 430001 435000 430,550 0.0368%
1 440001 445000 441,551 0.0378%
1 455001 460000 455,954 0.0390%
1 460001 465000 460,715 0.0394%
1 465001 470000 466,099 0.0399%
1 480001 485000 484,309 0.0414%
2 485001 490000 978,589 0.0837%
1 495001 500000 495,550 0.0424%
1 540001 545000 543,356 0.0465%
1 545001 550000 550,000 0.0470%
1 570001 575000 570,827 0.0488%
1 575001 580000 580,000 0.0496%
1 605001 610000 605,743 0.0518%
1 645001 650000 646,115 0.0553%
1 675001 680000 677,072 0.0579%
1 715001 720000 719,203 0.0615%
1 730001 735000 734,793 0.0628%
1 750001 755000 754,761 0.0646%
1 780001 785000 783,157 0.0670%
1 790001 795000 793,081 0.0678%
1 800001 805000 802,717 0.0687%
1 815001 820000 818,156 0.0700%
1 820001 825000 821,447 0.0703%
1 825001 830000 828,964 0.0709%
2 850001 855000 1,705,482 0.1459%
1 875001 880000 875,011 0.0748%
2 885001 890000 1,776,095 0.1519%
1 910001 915000 913,000 0.0781%
1 940001 945000 941,190 0.0805%
1 1030001 1035000 1,034,550 0.0885%
2 1055001 1060000 2,114,039 0.1808%
1 1095001 1100000 1,100,000 0.0941%
1 1140001 1145000 1,140,900 0.0976%
1 1160001 1165000 1,163,900 0.0995%
1 1170001 1175000 1,175,000 0.1005%
1 1195001 1200000 1,197,446 0.1024%
1 1240001 1245000 1,242,848 0.1063%
1 1290001 1295000 1,290,011 0.1103%
2 1330001 1335000 2,664,700 0.2279%
1 1470001 1475000 1,474,100 0.1261%
1 1500001 1505000 1,504,133 0.1286%
1 1645001 1650000 1,649,187 0.1411%
1 1660001 1665000 1,660,500 0.1420%
1 1710001 1715000 1,710,039 0.1463%
1 1865001 1870000 1,867,775 0.1597%
1 1920001 1925000 1,925,000 0.1646%
1 1935001 1940000 1,939,099 0.1658%
1 1945001 1950000 1,948,513 0.1667%
1 2015001 2020000 2,015,629 0.1724%
1 2060001 2065000 2,063,350 0.1765%
1 2090001 2095000 2,094,593 0.1791%
1 2235001 2240000 2,239,000 0.1915%
1 2445001 2450000 2,445,312 0.2091%
1 2645001 2650000 2,649,152 0.2266%
1 2995001 3000000 3,000,000 0.2566%
1 3270001 3275000 3,270,899 0.2798%
1 3495001 3500000 3,498,258 0.2992%
1 3615001 3620000 3,617,755 0.3094%
1 3725001 3730000 3,725,382 0.3186%
1 3750001 3755000 3,752,263 0.3209%
1 4060001 4065000 4,061,500 0.3474%
1 4205001 4210000 4,206,019 0.3597%
1 4215001 4220000 4,218,389 0.3608%
1 5505001 5510000 5,505,711 0.4709%
1 6950001 6955000 6,950,134 0.5944%
1 7220001 7225000 7,224,454 0.6179%
1 9110001 9115000 9,111,452 0.7793%
2 9630001 9635000 19,265,212 1.6477%
1 11415001 11420000 11,418,816 0.9766%
1 12840001 12845000 12,843,474 1.0985%
1 26060001 26065000 26,064,141 2.2292%
1 39335001 39340000 39,335,610 3.3643%
1 109010001 109015000 109,014,771 9.3239%
1 350755001 350760000 350,757,710 30.0000%
1 446430001 446435000 446,432,362 38.1830%
2,152 1,169,192,384 100.0000

Categories of Shareholders
Number of Shares held Percentage Number of Shares held Percentage

Particulars Shareholders Shareholders
2018 2017
Directors, Chief Executive,
their spouse and minor children 4 9,179,415 0.79% 4 8,539,853 0.80%
Associated Companies, undertakings

and related parties 8 916,295,328 78.37% 7 943,444,729 88.76%
Banks, Development Financial Institutions and

Non Banking Finance Companies 5 1,099,497 0.09% 6 3,015,180 0.28%
Insurance Companies 10 30,928,748 2.65% 12 12,806,372 1.21%
Mudarabah and Mutual Funds 52 39,269,329 3.36% 39 21,281,991 2.00%
General Public
a.Local 1,833 40,807,331 3.49% 1,775 34,663,749 3.26%
b.Foreign 104 3,261,324 0.28% 87 1,477,719 0.14%
Others 136 128,351,412 10.98% 104 37,672,575 3.55%
Total 2,152 1,169,192,384 100.00% 2,034 1,062,902,168 100.00%
Additional Information as at December 31, 2018
Particulars
Number of Shares held Percentage Number of Shares held Percentage
Shareholders Shareholders
2018 2017
Associated Companies & Shareholders
with more than 10% shareholding
Noor Financial Investment Co, Kuwait 1 446,432,362 38.18% 1 522,033,439 49.11%
Pakistan Kuwait Investment Co. (Pvt.) Ltd. 1 350,757,710 30.00% 1 318,870,646 30.00%
Islamic Development Bank, Jeddah 1 109,014,771 9.32% 1 99,104,338 9.32%
CDC Trustee Meezan Islamic Fund 1 6,950,134 0.59% 1 2,840,077 0.27%
CDC Trustee Meezan Balanced Fund 1 889,350 0.08% 1 79,819 0.01%
CDC Trustee Meezan Dedicated Equity Fund 1 430,550 0.03% 1 510,000 0.05%
CDC Trustee Meezan Asset Allocation Fund 1 488,951 0.04% 1 6,410 0.00%
CDC Trustee Al Meezan Mutal Fund 1 1,331,500 0.11%
Directors, Chief Executive,

their spouse and minor children
*Mr. Mohammad Abdul Aleem - - - 1 195,384 0.02%

Mr. Noorur Rahman Abid 1 3,332,057 0.28% 1 3,029,143 0.28%
Mr. Irfan Siddiqui 1 3,752,264 0.32% 1 3,411,150 0.32%
Mr. Ariful Islam 1 2,094,593 0.18% 1 1,904,176 0.18%
**Ms. Laila M. S. A. S. A. S. Abbas 1 501 0.00% - - -
Executives 21 910,329 0.08% 15 339,707 0.03%
Public Sector Companies, Corporations, Banks,

DFI's, NBFC's, Insurance Companies, Mudarabah,
Mutual Funds and other Organizations 203 199,648,986 17.08% 161 74,776,118 7.04%
General Public 1,916 43,158,326 3.69% 1,847 35,801,761 3.37%
2,152 1,169,192,384 100.00% 2,034 1,062,902,168 100.00%
*Mr. Mohammad Abdul Aleem retired on November 17, 2018

**Ms. Laila M. S. A. S. A. S. Abbas resigned on February 19, 2019

Guidelines and Policies
Standards of Ethics, Business Practices & Code of Conduct
The objective of these standards is to promote business ■ Avoid actual or potential conflicts of interests in
practices within Meezan Bank, which are Shariah - compliant, transactions on behalf of the Bank.
fair, reasonable and reflect high standards of ethical behavior. ■ Provide accurate and reliable information in records
submitted.
The standards of ethics and business practices, which the
Bank expects from all of its employees, is a condition of Code of Conduct
employment with the Bank and may be considered at the Confidential Information
time of performance appraisal of an employee. Employees shall maintain strict secrecy regarding the
Bank's affairs and shall not (except so far as is necessary
■ Code of Conduct, during office hours or otherwise, and appropriate in the normal course of their employment)
shall always be that of a good citizen. disclose to any person, any information as to the practice,
■ Act with integrity, competence, dignity, and ethically dealing or affairs of the Bank or any of their customers,
while dealing with the customers, shareholders, which may come to their knowledge by reason of their
vendors and colleagues. employment.
■ Understand and comply with the legal / regulatory
requirements and internal policies and procedures of During the course of employment and after its termination
the Bank that apply to the duties assigned to the for whatever reason, the employee must not disclose to
employee. anyone (nor use for any purpose other than the business of
■ Never willingly enter into a business transaction, which the Bank) any information relating to the Bank or its
shall violate any law or principles of Islamic finance. employees which is not already available to the public,
■ Never use their position to force, induce, coerce, unless authorized to do so. Such information includes
harass and intimidate any other person, including customer data, product manuals, technical secrets,
sub-ordinate to provide any force, gift or benefit, confidential research work, technical processes, operating
whether financial or otherwise, to themselves or others. manuals, marketing plans and strategies and other
■ Avoid professional misconduct involving dishonesty, confidential financial or business information of the Bank.
fraud, deceit or misrepresentation. Any unintentional
mistake, wherever possible, shall be immediately Recording of Information
rectified and reported to the line manager. No unrecorded fund or assets of Bank shall be established
■ Not make use of any information including Bank's trade or maintained for any reason. No false, artificial or
secrets, proprietary, confidential information, gained in misleading entries in the books and records of Bank shall
the performance of official Bank duties as a means of be made for any reason. All reporting of information should
making any personal profit, gain or benefit for be accurate, honest and timely and should be a fair
themselves or connected persons. representation of the facts.
■ Immediately report to the management of pre-existing
personal relationship with any existing or potential Conflict of Interest
customer, industry representative or government It is obligatory that:
employee with whom the Bank has a business
relationship. Pending clearance from the management, ■ An employee may not hold a position of director,
the employee shall take no further action associated with consultant, employee, representative or agent with
the business in which a personal relationship exists. any supplier, competitor, customer, individual or
■ Will not use the Bank's services or facilities for private organization either doing or seeking to do business
purposes except with prior permission. with the Bank without prior written consent of the
■ Conduct Bank's business with honesty, integrity and in Bank's President & CEO. If any immediate family
a professional manner. member holds a position, with any organization doing
■ Avoid any action on his / her part that may be or seeking to do business with the Bank, a written
repugnant, unethical or unlawful. disclosure must be made promptly to line manager /
■ Avoid any action on his / her part that may be viewed HRD.
as repugnant, unethical or unlawful by customers or ■ An employee may not hold any interest in any
public at large or the Bank itself. organization doing business with the Bank without the
■ Avoid any activities that could involve or lead to written consent of Regional Manager or Department
involvement in any unlawful or unethical governance Head, unless it is a company / establishment quoted on
practice. a Stock Exchange and the interest is less than 1
■ Avoid participation in any political activities. percent.
■ Avoid participation in any other subversive activities.
■ Abstain from gambling, betting and wagering Mis-declaration/Concealment of Facts
contracts. An employee shall not make any mis-declaration or
■ Be exemplary in personal conduct towards the Bank, conceal the facts in knowledge. The following are
other employees and customers of the Bank. illustrative examples, but are not all-inclusive:
■ Safeguard the confidential information of the Bank and ■ An employee issuing an incorrect account statement,
its customers.

salary certificate or any other information for any Fraud, Theft or Illegal Activities
customer or staff member. Employees shall be alert and vigilant with respect to
■ An employee issuing a fake claim for reimbursement of frauds, thefts or illegal activities committed within the
any expenses whereby either the expenses are office. If any such activity comes to the attention of an
inflated and/or the difference between expenses employee, the employee must immediately report the
claimed and actually incurred are pocketed by the same to the Head of Audit, Head of Operations and Head
staff member. of Human Resources; who will arrange for appropriate
■ An employee at the time of induction in Meezan Bank follow-up action to be taken. Failure to report any such
(i.e. during interview and in testimonials) provided a false, activity will be subject to disciplinary action.
forged, misleading information or concealed, hide,
incompletely stated, any information regarding Money Laundering
credentials, academic record(s), previous The Bank has set its priority not to become implicated, in
employment(s) and demographic details. any way, with individuals or firms involved in criminal
activities and money laundering. The employees are
Know Your Customer, Vendors and Counter Parties expected to exercise maximum caution in this regard.
In order to safeguard the Bank's reputation and integrity, it
is not only necessary for employees to discipline their own The employee should know the customer, be vigilant for
actions, it is also necessary to be aware of the character unusual circumstances and immediately report any
and actions of customers, vendors and counter parties. suspected case to the Manager / Area Manager / Regional
Care must be exercised in selecting those with whom we Manager / Compliance Department/Audit Department,
deal. Each Meezan Bank business must have processes who will arrange for appropriate follow-up action to be
in place for checking on the credit and character of taken. Failure to report any such activity will be subject to
customers, vendors and counter parties. disciplinary action.
Employees must ensure that the Bank establishes Courtesy & Manners
relationship with only those individuals, businesses, and Employees of Meezan Bank shall maintain utmost courtesy
entities who have a sound reputation and whose true and exemplary manners when interacting with clients or
identity has been established. Employees should conduct with each other. Employees are dealing on behalf of the
maximum caution in opening new accounts and before Bank, so they are required to keep high standards of
opening, ensure that due diligence steps are completed. professionalism and ethics. Any violations of this code
shall be brought to the attention of supervising officials as
Gifts & Entertainment well as the Human Resources Department for their
At certain times of the year, some customers, suppliers, information, record and remedial disciplinary action.
contractors and consultants to the Bank may present gifts
or arrange entertainment for employees. While the Honesty & Integrity
sentiments behind such actions are usually genuine, there Employees shall serve the Bank, devote whole time during
is a possibility that others may misconstrue them. In a office hours and discharge their duties honestly, faithfully
minority of cases such actions may not be in the best and use their utmost endeavors to promote the interest of
interest of good working relationships. Gifts may be the Bank. They shall behave with decorum, integrity, show
presented locally or internationally in the form of Cash or in courtesy and attention in all dealings with customers,
kind of Services, either free or discounted. government officials, senior officers, colleagues,
subordinates and general public.
Bribery & Misconduct
An employee will be guilty of an offence, who, without Participation in Political Organizations
lawful authority or reasonable excuse: No employee shall take part in, subscribe in aid of, or
assist in anyway in any political movement in Pakistan
■ Solicits or accepts any advantage as an inducement during the office timing at the office premises. No
or reward for doing or intending to commit any action employee shall use official influence in connection with or
in relation to the Bank's affairs or business. take part in any election to a legislative body, whether in
■ Showing or intending to show favors or disfavors to Pakistan or elsewhere.
any person in relation to the Bank's affairs or business.
■ Offers any advantage to any one as an inducement or Ideology of Pakistan
reward for any favor/disfavor or otherwise. No employee shall express views detrimental to the
■ Intends to deceive the Bank by using any receipt, ideology or integrity of Pakistan.
account or other document which is false or erroneous
or defective in any way and which to employee's Direct Representations to the High Govt. & Meezan
knowledge is intended to mislead the Bank. Bank Officials
■ Take any cash or near-to-cash benefit from any stake No employee shall make any personal representations
holder of the bank to provide undue advantage. directly to Chairman, Directors or Members of the Board,
■ Pay any cash or near-to-cash benefit to any stake or Government functionaries. Such representations must
holder of the Bank to take undue advantage. be addressed to the President & CEO through the
immediate supervisor of the employee. However this
policy does not, in any way, seek to block a citizen's
redress to the judiciary and other statutory redresses.

Core Values Computer, E-mail, Information Security
■ Shariah Compliance Meezan Bank computer system contains an e-mail facility,
■ Integrity & Innovation access rights, information and software, which are
■ Professionalism intended to promote effective communication within and
■ Service Excellence outside the Bank, on matters relating to its business and
■ Social Responsibility facilitate routine information flow and smooth and safe
transactions.
Meezan Bank's Personality
The Bank expects its employees to be: The e-mail system should therefore only be used for
official/business purpose. All communication and
■ Sober information are the property of Meezan Bank and the Bank
■ Truthful reserves the right to retrieve the contents of the messages
■ Committed to excellence for the purpose of monitoring. The employee shall be held
■ Empathetic accountable for all activities under his/her password.
■ Professional
■ Extremely loyal Dress Code & Professional Attire
■ Dependable friend Attire is a reflection of professionalism as well as that of
■ Trustworthy business partner the Bank's brand and personality. A professional business
■ Committed to the cause of Islamic banking appearance together with a high standard of personal
hygiene is expected from all employees. The Official
Health & Hygiene Dress Code of Meezan Bank is professional corporate
Personal Hygiene is the most important aspect of our daily attire inline with traditional Islamic modesty. At Meezan
life. The personality is perceived by its degree of neatness. Bank every staff member is expected to have a
The personal hygiene covers care of body odor, bad professional business appearance together with a high
breath, teeth, nails, ears, nose, hair, daily shower, shave (if standard of personal hygiene.
not keeping proper beard), daily wear washed, clean,
pressed clothes etc.
Guidelines on Whistle-Blowing
The purpose of these whistle blowing guidelines is to Who must blow the whistle and how?
provide a mechanism to Bank’s stakeholders (employees, It is the responsibility of each and every stakeholder of the
customers, vendors, etc.) to report any activity which in Bank, instead of limiting it to a particular department or
their opinion may cause financial and/or reputational loss senior management only, that if any stakeholder observes
to the Bank. The major objectives of whistle blowing policy any suspicious, fraudulent or unethical activity, transaction
can be classified as: or act that may cause a potential threat to the Bank or
could be against the interest of the Bank, he / she must
■ To provide an environment whereby stakeholders feel immediately report this to Whistle Blowing Unit through
confident to blow the whistle without any fear of various modes including but not limited to Meezan Bank’s
reprisal, subsequent discrimination and of being website, E-mail, fax, mobile and landline.
disadvantaged in any way;
■ To develop a culture of accountability and integrity; Confidentiality & protection of whistle blowers
■ To create awareness amongst stakeholders regarding The whistle blowing mechanism has been designed to
the whistle blowing function; and ensure complete confidentiality of the entire process and
■ To be a source of early warning signal. also enables the Bank to take immediate corrective
measures. Identification of the whistleblower is kept
Scope completely confidential except as required by law or who
The scope of these guidelines includes, without limitation, have legitimate right to know. The Bank stands committed
disclosure of all types of unlawful acts / orders, fraud, to protect whistleblowers for whistle blowing and any
corruption, misconduct, collusive practices or any other subsequent harassment or victimization of the
activity which undermines Bank’s operations, financial whistleblower is not tolerated.
position, reputation and mission.

Guidelines for Safety of Records of the Company
Comprehensive guidelines are in place at Meezan Bank for archiving officers for transferring/retrieval of records to and
ensuring that physical documents are being archived in an from Archives.
organized, efficient and reliable manner. These guidelines
encompass detailed processes for preservation, organization, Destruction of Records
transfer, retrieval and destruction of physical records. The This section provides guidelines about the type of records
guidelines comprise of the following elements: that need to be retained permanently or till the time approval
from Regulators is obtained for their destruction. e.g. cases
General Guidelines in litigation, records relating to suspicious transactions, etc.
This section deals with the role of the Administration Relevant Branch Manager / Area Manager / Departmental
Department in providing an Archive facility outside the branch Head is responsible for checking and verifying the list of
and provides guidelines on when old records will be records that need to be destroyed. For branch records,
transferred to the archive, signatories that may authorize Head Office operations will finally approve branch's request
retrieval of records, treatment of records under litigation / for destruction of record, which will be carried out in the
dispute, type of records that may be kept under fire-proof presence of Branch Manager & Operations Manager.
cabinet, and the convention to be followed for allocating
serial numbers to archived records. Retention of Old Records
These guidelines outline the various types of records and
Preservation of Old Records
the recommended period for their retention and subsequent
This section deals with maintenance of old records in a destruction in view of the Banking Companies Ordinance,
secured environment and the procedure for documenting SBP Prudential Regulations and other regulatory
their complete details to facilitate retrieval and destruction requirements.
after expiry of retention timelines. This section also defines
the responsibilities of the Archiving Officer. Standardized Formats
Formats for forms and registers have been provided to
Procedures to Handle Records at Archives
facilitate standardization and controls across Meezan Bank's
These are detailed procedures with clearly allocated network.
responsibilities of Branch / Head Office departments and
Summary of Corporate Social Responsibility Policy

Scope of Corporate Social Responsibility Policy Areas of Focus
The CSR Policy pertains to all corporate social Meezan Bank may contribute in the form of financial
responsibility activities undertaken by Meezan Bank and assistance, providing logistic support and availability of
applies to all employees of the Bank. human resources for charitable causes in various sectors
including, but not limited to the ones mentioned below, as
Activities undertaken by the Bank may include projects per the Management’s discretion:
being implemented independently by Meezan Bank or
projects undertaken in coordination with other entities. • Health
• Social & Environment Sustainability
Objective of Meezan Bank’s CSR initiatives • Education
To contribute as a responsible corporate citizen to the • Creating awareness about the prohibition of Riba and
community and environment in which the Bank is the available alternatives
operating.
The Bank may also encourage its employees to volunteer
and contribute to its own or other organizations’ CSR
initiatives,
Summary of Sustainability Policy

Purpose reference for dealing with direct and indirect sustainability
The purpose of the Sustainability Policy is to provide a risks.
framework for incorporating sustainability into the Bank’s
business operations and to minimize the environmental, It is applicable to all of the Bank’s products and services,
social, ethical and financial and Shariah risks to the Bank’s organizational units and departments and may include
stakeholders and to the organization itself. projects and activities being implemented independently
by Meezan Bank or projects undertaken in coordination
Scope of Sustainability Policy with other entities.
The Sustainability Policy shall support business decision
making at all levels of the Bank and will provide a frame of

Summary of Green Banking Policy
Scope and Objective
The Green Banking Policy of Meezan Bank Limited has been prepared in light of the 'Green Banking Guidelines' issued vide IH & SMEFD
Circular # 08 dated October 09, 2017 of State Bank of Pakistan. The objective of this policy is to institutionalize Green Banking across
Meezan Bank by focusing on the following major aspects:
• Governance Structure and Responsibilities

• Organizational Structure
• Environmental Risk Management Framework
• Green Business Facilitation
• Own Impact Reduction/ In-house Environment Management
• General Guidelines
Summary of Information Security Policy

Information Security relates to protection of valuable assets Physical and Environmental Security
against loss, misuse, disclosure or damage. Each asset has to To prevent unauthorized physical access, damage to, and
be reviewed from the perspective of its Confidentiality, Integrity interference with the Bank's premises (head office and branches)
and its Availability to the authorized personnel. A number of and information.
factors play a critical role in the successful implementation of
information security. Operations Security
To ensure correct and secure operation of information processing
Information Security Policy facilities.
The Information Security Policy defines the policies and
supporting standards that guide the consistent application of Communications Security
information security and ensure that the interests / information To maintain the integrity and availability of information and
are adequately protected against loss, improper disclosure and information processing facilities.
unauthorized modification. Meezan Bank's Information Security
Policy is based on ISO 27001. The policy comprises of the Information Systems Acquisition, Development and
following domains: Maintenance
To ensure that security measures are always built into and are
Organization of Information Security an integral part of all information systems.
In order to manage information security within the Bank, a
framework has been established by the Bank's management to Supplier Management
initiate and control the implementation of information security To ensure the protection of the organization’s information assets
within the organization. that is accessible by IT suppliers for providing IT service
delivery.
Risk Assessment & Treatment
To review IT System and Operation for identifying and mitigating Information Security Incident Management
the risk that could affect Meezan Bank’s infrastructure through To ensure that information security events and weaknesses
internal and external attacks. The basis of these assessments associated with the Bank's information systems are
is the Confidentiality, Integrity and Availability (CIA) of the communicated in a manner that allows timely corrective action
information assets and services. to be taken.
Human Resources Security Information Security Aspects of Business Continuity

This segment of the policy ensures that the Bank's employees, Management
contractors and third party users understand their responsibilities To counteract interruptions to business activities and to protect
and are suitable for the roles they are considered for, thereby critical business processes from the effects of major failures of
reducing the risk of theft, fraud or misuse of facilities. information systems or disasters and to ensure their timely
resumption.
Asset Management
To achieve and maintain appropriate protection of the Bank's Compliance
Information Assets. To ensure that any law, statutory, regulatory or contractual
obligations and security requirements are not breached.
Access Control
To control the access to information, information processing Information Security Trainings and Awareness
facilities and business processes based on business and security Appropriate awareness programs and regular updates in
requirements. organizational IT security policy and procedures, as relevant
for their job function are conducted.
Cryptography
To protect the confidentiality, authenticity and integrity of Each of the above domains comprise of multiple processes and
information by Cryptography (The conversion of data into a controls to ensure promotion of an information security.
secret code for transmission over a public network.)

IT Governance Policy
Scope 6. IT System Acquisition Management caters the way the IT
This policy creates the governance for the Information Systems should be procured in line with Bank’s expenditure
Technology Division for the Bank under the supervision of IT policy.
Steering Committee, Board IT Committee and Board of
Directors. This policy describes and create a framework that 7. Configuration Management covers the rules for
will pave the roadmap on which IT Division will provide configuration of information technology devices and
services to Bank’s business functions and to ensure that the infrastructure for tracking and controlling all changes to
Bank’s business operations are driven based on Technology information systems of the Bank.
Solutions.
8. IT Compliance Management defines the way ITD works
Objective under compliance guidelines
To put in place the policy framework for IT Governance at the
Bank in order to provide services to the Bank’s Business 9. IT Continuity Management covers the aspect of Business
functions. This policy framework is also aligned with the IT Continuity Plan and Disaster Recovery Plan in case of any
Security Policy of the Bank which is based on the standard ISO service disruption.
27001.
10. IT Backup and Restoration Management defines the rules
Executive Summary for backup and storage of electronic information within the
Establish Partnership with business to enrich Business and IT entity that are responsible for electronic data stored in
alignment and by delivering cost effective technology solutions archive.
and services.
11. IT Outsourcing Management defines the framework for
This model describes all functions of the IT Division in the form outsourcing of IT services.
of services which results in business benefits. It consists of five
core services area (IT Service Strategy, IT Service Design, IT 12. Software Solution Development and Maintenance
Service Transition, IT service Operations and Continual IT Management facilitates the effective development and
Service Improvement) that covers best practices and maintenance of Software solutions to compliment business
guidelines within IT management. functions.
Key Areas – IT Management Policy 13. IT Infrastructure Management determines the process for
Key areas in Meezan Bank IT Management Policy are as requirements analysis, planning, design, deployment and
follows: on-going operation management. It also ensures
technology is accessible and equipped with current
1. IT Capacity and Performance Management provides hardware and software for application management.
guidelines for maintaining scalable IT capacity and making
the best and optimal use to meet the performance 14. Network Management defines the principles covering
requirements expected by the business. internal and external network environment operated by the
Bank including Logical Access Management,
2. IT Project Management defines standard and best practice Infrastructure security, Operational Management and
guidelines for project management to assure that they are Bandwidth Management.
accomplished in timely, cost effective manner. It is
governed by PMO Charter. 15. Database Management aims at ensuring the availability,
integrity, security, consistency and accuracy of the Bank’s
3. Change Management emphasizes on managing all database.
changes within the IT environment including emergency
changes, fixes and patch management to minimize the 16. Virus and Malware Management ensures that systems,
disruption in services. database and software are protected against the risk to
malicious software and unauthorized code.
4. IT Helpdesk and Problem Management ensures incidents
and problems related to systems are reported, tracked 17. Internet and Intranet Usage Management defines the rules
investigated and resolved in effective and efficient manner. for Internet usage.
5. Service Level Agreement Management ensures the SLA’s 18. Desktop Support Management defines the principle
are established, agreed between vendors and IT in line covering the IT related Support activities and covers the
with Business needs to gauge the service delivery Installation and configuration of desktops in branches and
performance. providing first level support.

Correspondent Banking Network
Bank Country Bank Country

Afghan United Bank AFGHANISTAN Deutsche Bank A.G. BELGIUM
Bakhtar Bank AFGHANISTAN Habib Bank Ltd. BELGIUM
Bank of America, N.A. Sydney AUSTRALIA KBC Bank Nv BELGIUM
Bank of Sydney Ltd AUSTRALIA First National Bank of Botswana
Bankwest A Division of Limited BOTSWANA
Commonwealth Bank of Banco Bradesco S.A. BRAZIL
Australia AUSTRALIA Banco Bradesco Sa (Formerly
HSBC Bank Australia Limited AUSTRALIA Kirton Bank S.A. - Banco Multiplo) BRAZIL
Industrial and Commercial Deutsche Bank S.A.
Bank of China Sydney Branch AUSTRALIA Banco Alemao BRAZIL
JP Morgan Chase Bank, N.A., Itau Unibanco S/A (Successor
Sydney Branch AUSTRALIA of Banco Itau Bba S.A.) BRAZIL
National Australia Bank Limited AUSTRALIA Eurobank Bulgaria Ad BULGARIA
Allgemeine Sparkasse Unicredit Bulbank Ad BULGARIA
Oberoesterreich United Bulgarian Bank BULGARIA
Bankaktiengesellschaft AUSTRIA Bank of America, National
Commerzbank Ag, Association, Canada Branch CANADA
Niederlassung Wien Wien AUSTRIA Bank of Montreal CANADA
Deutsche Bank Aktiengesellschaft Canadian Imperial Bank
Filiale Wien (Vienna Branch) AUSTRIA of Commerce CANADA
Erste Group Bank Ag AUSTRIA Habib Canadian Bank CANADA
Hypo Vorarlberg Bank Ag AUSTRIA HSBC Bank Canada CANADA
Oberbank Ag AUSTRIA JP Morgan Chase Bank,
Raiffeisen Bank International Ag AUSTRIA Toronto Branch CANADA
Raiffeisenlandesbank Royal Bank of Canada CANADA
Oberoesterreich Toronto-Dominion Bank CANADA
Aktiengesellschaft AUSTRIA Itau Corpbanca (Formerly
Unicredit Bank Austria Ag AUSTRIA Banco Itau Chile) CHILE
Al Baraka Islamic Bank BAHRAIN Agricultural Bank of China CHINA
Bank Al Habib Limited BAHRAIN Bank of Beijing CHINA
Bmi Bank Bsc (C) BAHRAIN Bank of China CHINA
Gulf International Bank, B.S.C. BAHRAIN Bank of Communications CHINA
Ithmaar Bank B.S.C. (C) BAHRAIN Bank of Jiangsu Co Ltd CHINA
JS Bank Limited BAHRAIN Bank of Wenzhou (Formerly
Khaleeji Commercial Bank Wenzhou City Commercial Bank) CHINA
B.S.C. (C) BAHRAIN China Citic Bank CHINA
Standard Chartered Bank BAHRAIN China Everbright Bank CHINA
Turkiye Is Bankasi A.S. Citibank (China) Co. Ltd. CHINA
Bahrain Branch BAHRAIN Commerzbank Ag CHINA
United Bank Limited BAHRAIN Deutsche Bank (China) Co. Ltd. CHINA
Woori Bank, Manama BAHRAIN HSBC Bank (China)
Bank Alfalah Limited (Bangladesh Company Limited CHINA
Dhaka Branch) BANGLADESH Hua Xia Bank CHINA
Eastern Bank Ltd. BANGLADESH Industrial And Commercial
Export Import Bank of Bank of China CHINA
Bangladesh Ltd BANGLADESH Industrial Bank Co.Ltd. CHINA
International Finance Investment Industrial Bank of Korea (China)
And Commerce Bank Ltd. BANGLADESH Limited CHINA
Islami Bank Bangladesh Ltd BANGLADESH Jinan Rural Commercial Bank
Mercantile Bank Limited BANGLADESH Co. Ltd (Formerly Shandong Jinan
National Bank Limited BANGLADESH Runfeng Rural Cooperative Bank) CHINA
Shahjalal Islami Bank Limited BANGLADESH JP Morgan Chase Bank (China)
Social Islami Bank Limited BANGLADESH Company Limited Bejing Branch CHINA
Standard Chartered Bank BANGLADESH JP Morgan Chase Bank (China)
The Hongkong And Shanghai Company Limited, Shanghai Branch CHINA
Banking Corporation Limited BANGLADESH JP Morgan Chase Bank (China)
Union Bank Limited BANGLADESH Company Limited, Suzhou Branch CHINA
Woori Bank, Dhaka BANGLADESH Korea Development Bank CHINA
Belarusbank BELARUS Laishang Bank Co. Ltd (Formerly
Minsk Transit Bank BELARUS Laiwu City Commercial Bank Co. Ltd) CHINA
Bank of America Merrill Lynch Mega International Commercial Bank CHINA
International Limited, Mizuho Bank (China) Ltd. CHINA
Brussels Branch BELGIUM Shengjing Bank Co.Ltd CHINA
Belfius Bank Sa/Nv BELGIUM Skandinaviska Enskilda Banken
Byblos Bank Europe S.A. BELGIUM Ab (Publ), Shanghai Branch CHINA
Commerzbank Ag,The,Brussels Standard Chartered Bank
Branch BELGIUM (China) Limited CHINA

Weifang Rural Commercial SEB Ag SEB Merchant Banking GERMANY
Bank Co. Ltd CHINA Sparkasse Bremen Ag GERMANY
Yantai Bank Co.Ltd. CHINA Sparkasse Dortmund GERMANY
Zhejiang Chouzhou Commercial Sparkasse Koelnbonn (Former
Bank Co.,Ltd CHINA Stadtsparkasse Koeln) GERMANY
Zhejiang Mintai Commercial Bank CHINA Sparkasse Westmuensterland GERMANY
Bank of Cyprus Public Standard Chartered Bank
Company Limited CYPRUS Germany Branch GERMANY
Hellenic Bank Public Company Ltd. CYPRUS Unicredit Bank Ag
Ceskoslovenska Obchodni (Hypovereinsbank) GERMANY
Banka, A.S. CZECHIA Volksbank Bielefeld-
Commerzbank Ag CZECHIA Guetersloh Eg GERMANY
HSBC Bank Plc CZECHIA Volksbank Bocholt Eg GERMANY
Komercni Banka A.S. CZECHIA Vtb Bank (Deutschland) Ag GERMANY
Unicredit Bank Czech Republic Piraeus Bank Sa GREECE
And Slovakia, A.S. CZECHIA ABN Amro Bank N.V.
Danske Bank A/S DENMARK Hong Kong Branch HONG KONG
Nordea Danmark, Filial Af Nordea Axis Bank Limited HONG KONG
Bank Ab (Publ), Sverige DENMARK Bank of America, N.A. Hong Kong HONG KONG
Nordjyske Bank A/S DENMARK Citibank N.A. HONG KONG
Skjern Bank DENMARK Commerzbank Ag HONG KONG
Sydbank A/S DENMARK DBS Bank (Hong Kong) Limited HONG KONG
Bank of Alexandria S A E EGYPT Deutsche Bank Ag HONG KONG
Emirates National Bank of Dubai Habib Bank Zurich (Hong Kong)
Sae (Formerly Bnp Paribas Limited HONG KONG
Sae,Egypt) EGYPT Hongkong And Shanghai Banking
HSBC Bank Egypt S.A.E EGYPT Corporation Limited, The HONG KONG
Mashreq Bank EGYPT Industrial And Commercial Bank
Versobank As ESTONIA of China (Asia) Limited HONG KONG
Awash International Bank S.C. ETHIOPIA Intesa Sanpaolo Spa Hong Kong HONG KONG
Commercial Bank of Ethiopia ETHIOPIA JP Morgan Chase Bank, N.A.,
Dashen Bank S.C. ETHIOPIA Hong Kong Branch HONG KONG
Danske Bank FINLAND Kbc Bank Nv, Hong Kong HONG KONG
Danske Bank Plc FINLAND Kookmin Bank, Hong Kong Branch HONG KONG
Nordea Bank Ab (Publ), Finnish Mashreqbank Psc., Hong Kong
Branch FINLAND Branch HONG KONG
Op Corporate Bank Plc FINLAND National Bank of Pakistan Hong Kong HONG KONG
Skandinaviska Enskilda Banken FINLAND Skandinaviska Enskilda Banken Ab HONG KONG
Bmce Bank International Plc Standard Chartered Bank
Succursale En France FRANCE (Hong Kong) Limited HONG KONG
Bnp-Paribas Sa (Formerly Banque Sumitomo Mitsui Banking Corporation HONG KONG
Nationale De Paris S.A.) FRANCE The Bank of New York Mellon,
Byblos Bank Europe S.A. Hong Kong Branch HONG KONG
(Paris Branch) FRANCE Wells Fargo Bank, N.A.,
CM- CIC Banques FRANCE Hong Kong Branch HONG KONG
Commerzbank Ag FRANCE Woori Bank, Hong Kong HONG KONG
Credit Du Nord FRANCE Cib Bank Ltd. (Formerly Central-
Credit Mutuel - Cic Banques FRANCE European Int.Bank Ltd.) HUNGARY
Deutsche Bank Ag FRANCE Commerzbank (Budapest) Rt. HUNGARY
Habibsons Bank Limited FRANCE K And H Bank Zrt.(Formerly
HSBC France (Formerly HSBC Ccf) FRANCE Kereskedelmi Es Hitelbank Rt) HUNGARY
National Bank of Pakistan FRANCE Raiffeisen Bank Zrt. HUNGARY
Societe Generale FRANCE Unicredit Bank Hungary Zrt. HUNGARY
Sumitomo Mitsui Banking Axis Bank Limited INDIA
Corporation Europe Limited FRANCE Bank of America, N.A. Mumbai INDIA
Union De Banques Arabes Bank of Baroda INDIA
Et Francaises FRANCE Bank of Ceylon INDIA
Bankhaus Lampe Kg GERMANY Citibank N.A. INDIA
Commerzbank Ag GERMANY Deutsche Bank Ag INDIA
Commerzbank Ag (Formerly Emirates Nbd Bank (P.J.S.C) INDIA
Dresdner Bank Ag) GERMANY Hdfc Bank Limited INDIA
Deutsche Bank Ag GERMANY Jammu And Kashmir Bank Ltd INDIA
DZ Bank Ag (Formerly WGZ JP Morgan Chase Bank, N.A.,
Bank Ag) GERMANY Mumbai Branch INDIA
DZ Bank Ag Deutsche Zentral- Mashreq Bank INDIA
Genossenschaftsbank GERMANY Punjab National Bank INDIA
HSBC Trinkaus Und Burkhardt Ag GERMANY Standard Chartered Bank INDIA
HSH Nordbank Ag GERMANY State Bank of India INDIA
Landesbank Baden-Wuerttemberg GERMANY Bank Central Asia INDONESIA
Landesbank Hessen-Thueringen Bank Mandiri (Persero), Pt INDONESIA
Girozentrale GERMANY Bank of America, N.A. Jakarta Branch INDONESIA
Mainzer Volksbank E.G. GERMANY Bank of Tokyo-Mitsubishi Ufj,
National Bank of Pakistan, Frankfurt GERMANY Ltd., The INDONESIA
Nordea Bank Ab Frankfurt Branch GERMANY Deutsche Bank Ag INDONESIA


JP Morgan Chase Bank, N.A., Woori Bank, Tokyo JAPAN
Jakarta Branch INDONESIA Housing Bank For Trade And Finance JORDAN
Pt Bank HSBC Indonesia INDONESIA Jordan Islamic Bank JORDAN
Pt Bank Syariah Mandiri INDONESIA Sb Sberbank Jsc KAZAKHSTAN
Pt. Bank Cimb Niaga, Tbk. INDONESIA Gulf African Bank Ltd KENYA
Pt. Bank Sbi Indonesia INDONESIA Habib Bank Ag Zurich KENYA
Standard Chartered Bank INDONESIA KCB Bank Kenya Limited KENYA
Woori Bank, Indonesia P.T. Jakarta INDONESIA Busan Bank KOREA, REPUBLIC of
Rasheed Bank IRAQ Daegu Bank Ltd. KOREA, REPUBLIC of
AIB Bank IRELAND Deutsche Bank Ag, Seoul Branch KOREA, REPUBLIC of
Bank of America Merrill Lynch Industrial Bank of Korea KOREA, REPUBLIC of
International Limited IRELAND JP Morgan Chase Bank, N.A.,
Bank of Ireland IRELAND Seoul Branch KOREA, REPUBLIC of
Citibank Europe Plc IRELAND KEB Hana Bank KOREA, REPUBLIC of
Danske Bank A/S IRELAND KEB Hana Bank(Formerly
Intesa Sanpaolo Bank Ireland Plc IRELAND Hana Bank) KOREA, REPUBLIC of
Banca Adriatica S.P.A. ITALY Kookmin Bank KOREA, REPUBLIC of
Kyongnam Bank KOREA, REPUBLIC of
Banca Di Credito Cooperativo National Bank of Pakistan,
Di Carate Brianza S.C.A.R.L. ITALY Seoul Branch Korea KOREA, REPUBLIC of
Banca Di Pisa E Fornacette Nonghyup Bank (Formerly Known
Credito Cooperativo Soc.Coop.P.A. ITALY As National Agricultural Cooperative
Banca Monte Dei Paschi Di Federation) KOREA, REPUBLIC of
Siena S.P.A. ITALY Shinhan Bank KOREA, REPUBLIC of
Banca Nazionale Del Lavoro S.P.A. ITALY Standard Chartered Bank Korea
Banca Popolare Di Milano S.P.A. ITALY Limited KOREA, REPUBLIC of
Banca Popolare Di Sondrio ITALY Sumitomo Mitsui Banking Corporation KOREA, REPUBLIC of
Banca UBAE Spa ITALY The Hongkong And Shanghai
Banco BPM Spa ITALY Banking Corporation Limited,
Banco BPM Spa (Formerly Seoul Branch KOREA, REPUBLIC of
Credito Bergamasco) ITALY U.B.A.F.-Union De Banques
Banco Di Napoli Spa ITALY Arabes Et Francaises KOREA, REPUBLIC of
Bank of America Merrill Lynch Wells Fargo Bank, N.A.,
International Limited, Milan Branch ITALY Seoul Branch KOREA, REPUBLIC of
Bper Banca S.P.A. ITALY Woori Bank, Seoul KOREA, REPUBLIC of
Cassa Di Risparmio Del Boubyan Bank (K.S.C) KUWAIT
Veneto S.P.A. ITALY Burgan Bank K.P.S.C KUWAIT
Cassa Di Risparmio Di Pistoia Citibank N.A. KUWAIT
E Della Lucchesia Spa ITALY Commercial Bank of Kuwait Kpsc,The KUWAIT
Cassa Di Risparmio In Bologna Kuwait Finance House (K.S.C.) KUWAIT
Spa - Carisbo Spa ITALY National Bank of Kuwait S.A.K.P. KUWAIT
Commerzbank Ag ITALY Noor Financial Investment Company KUWAIT
Credit Agricole Cariparma Spa ITALY Luminor Bank As Latvia (Former
Credito Emiliano S.P.A. ITALY Nordea Bank Ab Latvia) LATVIA
Credito Valtellinese ITALY Bank of Beirut S.A.L. LEBANON
Deutsche Bank S.P.A. ITALY Byblos Bank S.A.L. LEBANON
HSBC Bank Plc ITALY Lebanon And Gulf Bank LEBANON
Iccrea Banca - Istituto Centrale Societe Generale Bank And Trust S.A. LUXEMBOURG
Del Credito Cooperativo ITALY The Hongkong And Shanghai
Intesa Sanpaolo Spa ITALY Banking Corporation Limited MACAO
UBI Banca S.P.A. ITALY NLB Banka Ad Skopje MACEDONIA,THE FORMER
Unicredit S.P.A. ITALY YUGOSLAV REPUBL. of
Unipol Banca Spa ITALY Al Rajhi Banking And Investment
Bank of Tokyo-Mitsubishi Ufj, Corporation (Malaysia) Bhd MALAYSIA
Ltd., The JAPAN Ambank (M) Berhad MALAYSIA
Citibank N.A., Tokyo Branch JAPAN Bank Muamalat Malaysia Berhad
Commerzbank Ag Tokyo JAPAN (6175-W) MALAYSIA
Deutsche Bank Ag JAPAN Bank of America, Malaysia Berhad MALAYSIA
JP Morgan Chase Bank, N.A., Bank of Tokyo-Mitsubishi Ufj
Tokyo Branch JAPAN (Malaysia) Berhad MALAYSIA
Mizuho Bank, Ltd. JAPAN CIMB Bank Berhad MALAYSIA
National Bank of Pakistan JAPAN CIMB Islamic Bank Berhad MALAYSIA
Standard Chartered Bank JAPAN Citibank Berhad MALAYSIA
Sumitomo Mitsui Banking Deutsche Bank (Malaysia) Berhad MALAYSIA
Corporation JAPAN Hong Leong Bank Berhad MALAYSIA
U.B.A.F. - Union De Banques HSBC Bank Malaysia Berhad MALAYSIA
Arabes Et Francaises Tokyo Branch JAPAN Industrial And Commercial Bank
Wells Fargo Bank, N.A., Tokyo Branch JAPAN

of China (Malaysia) Berhad. MALAYSIA Samba Bank Limited PAKISTAN
J.P.Morgan Chase Bank Berhad MALAYSIA Silkbank Limited PAKISTAN
Malayan Banking Berhad (Maybank) MALAYSIA Sindh Bank Limited PAKISTAN
RHB Bank Berhad MALAYSIA Soneri Bank Limited PAKISTAN
Standard Chartered Bank Standard Chartered Bank
Malaysia Berhad MALAYSIA (Pakistan) Limited PAKISTAN
Credit Europe Bank N.V. Summit Bank Ltd PAKISTAN
Malta Branch MALTA United Bank Limited PAKISTAN
HSBC Bank Malta P.L.C. MALTA Bank of Palestine Plc PALESTINE, STATE of
Banque Islamique De Mauritanie MAURITANIA Asian Development Bank PHILIPPINES
Afrasia Bank Limited MAURITIUS The Hongkong And Shanghai
Hongkong And Shanghai Banking Corporation Ltd -
Banking Corporation Ltd., The MAURITIUS Philippine Branch PHILIPPINES
Maubank Ltd MAURITIUS Alior Bank Spolka Akcyjna POLAND
Banco Del Bajio, S.A. MEXICO Bank BPH Sa POLAND
Banco Nacional De Mexico S.A. MEXICO Bank Polska Kasa Opieki Sa -
Bank of America, Mexico S.A. MEXICO Bank Pekao Sa POLAND
Trade And Development Bank Bank Zachodni Wbk Sa POLAND
of Mongolia MONGOLIA Deutsche Bank Polska S.A. POLAND
Attijariwafa Bank (Formerly HSBC Bank Polska S.A. POLAND
Banque Commerciale Du Maroc) MOROCCO Mbank S.A. (Formerly BRE
Banque Marocaine Du Bank S.A.) POLAND
Commerce Exterieur MOROCCO Societe Generale Spolka Akcyjna
Societe Generale Marocaine Oddzial W Polsce POLAND
De Banques MOROCCO Montepio Geral - Caixa Economica PORTUGAL
Kanbawza Bank Ltd MYANMAR Novo Banco, Sa PORTUGAL
Bank of Kathmandu Limited NEPAL Barwa Bank QATAR
Himalayan Bank Ltd. NEPAL Mashreq Bank QATAR
Nabil Bank Limited NEPAL Qatar International Islamic Bank QATAR
NIC Asia Bank Limited NEPAL Qatar National Bank QATAR
ABN Amro Bank N.V. NETHERLANDS United Bank Limited, Doha QATAR
Bank of America Merrill Lynch Citibank Europe Plc, Dublin-
International Limited, Netherlands Sucursala Romania ROMANIA
Branch NETHERLANDS Unicredit Bank Sa ROMANIA
Commerzbank Ag Kantoor Amsterdam NETHERLANDS Alef-Bank RUSSIAN FEDERATION
Credit Europe Bank N.V. NETHERLANDS Asian-Pacific Bank RUSSIAN FEDERATION
Deutsche Bank Ag NETHERLANDS Bank of America, N.A. (Moscow) RUSSIAN FEDERATION
Deutsche Bank Ag (Formerly Bank Otkritie Financial Corporation
Deutsche Bank Nederland N.V.) NETHERLANDS (Public Joint-Stock Company) RUSSIAN FEDERATION
Habib Bank Ltd. NETHERLANDS Credit Bank of Moscow
HSBC Bank Plc. NETHERLANDS (Public Joint Stock Company) RUSSIAN FEDERATION
Rabobank NETHERLANDS HSBC Bank (Rr) RUSSIAN FEDERATION
Bank of New Zealand NEW ZEALAND Unicredit Bank Ao RUSSIAN FEDERATION
Hongkong And Shanghai Vnesheconombank (VEB) RUSSIAN FEDERATION
Banking Corporation Limited, The NEW ZEALAND VTB Bank (Pjsc) RUSSIAN FEDERATION
Danske Bank A/S NORWAY Al Inma Bank SAUDI ARABIA
DNB Bank Asa NORWAY Al Rajhi Bank SAUDI ARABIA
Nordea Bank Ab (Publ), Filial I Norge NORWAY Alawwal Bank SAUDI ARABIA
Skandinaviska Enskilda Banken NORWAY Bank Al Bilad SAUDI ARABIA
Bank Dhofar (S.A.O.G.) OMAN Bank Al-Jazira SAUDI ARABIA
Bank Nizwa OMAN Banque Saudi Fransi SAUDI ARABIA
Bank Sohar S.A.O.G OMAN Deutsche Bank Ag, Riyadh Branch SAUDI ARABIA
Bankmuscat Saog OMAN Emirates Nbd Pjsc SAUDI ARABIA
Habib Bank Oman OMAN Gulf International Bank B.S.C., Riyadh SAUDI ARABIA
Albaraka Bank (Pakistan)Limited PAKISTAN Islamic Development Bank SAUDI ARABIA
Allied Bank Limited PAKISTAN JP Morgan Chase Bank, N.A. Riyadh SAUDI ARABIA
Askari bank Limited PAKISTAN National Bank of Pakistan SAUDI ARABIA
Bank Al Habib Limited PAKISTAN National Commercial Bank SAUDI ARABIA
Bank Alfalah Limited PAKISTAN Riyad Bank SAUDI ARABIA
Bank of Khyber, The PAKISTAN Saudi British Bank SAUDI ARABIA
Bank of Punjab, The PAKISTAN ABN Amro Bank N.V. Singapore
Bankislami Pakistan Limited PAKISTAN Branch SINGAPORE
Citibank N.A. PAKISTAN Axis Bank Limited SINGAPORE
Deutsche Bank Ag, Karachi Branch PAKISTAN Bank Mandiri (Persero)Tbk. Pt SINGAPORE
Dubai Islamic Bank Pakistan Limited PAKISTAN Bank of America, N.A. Singapore SINGAPORE
Faysal Bank Limited PAKISTAN Bank of Tokyo-Mitsubishi Ufj, Ltd. SINGAPORE
Habib Bank Limited PAKISTAN Citibank,N.A. SINGAPORE
Habib Metropolitan Bank Limited PAKISTAN Commerzbank Ag, Singapore Branch SINGAPORE
Industrial And Commercial Bank DBS Bank Ltd. SINGAPORE
of China, Karachi Branch PAKISTAN Deutsche Bank Ag SINGAPORE
JS Bank Limited PAKISTAN Emirates Nbd Bank Pjsc (Enbd) SINGAPORE
MCB Bank Limited PAKISTAN First Abu Dhabi Bank Pjsc
MCB Islamic Bank Limited PAKISTAN (Formerly National Bank of
National Bank of Pakistan PAKISTAN Abu Dhabi) SINGAPORE
Habib Bank Limited SINGAPORE


JP Morgan Chase Bank, N.A. SINGAPORE Banque De Commerce Et De
KBC Bank Singapore Branch SINGAPORE Placements S.A. SWITZERLAND
Keb Hana Bank Singapore Barclays Bank (Suisse) S.A. SWITZERLAND
Branch (Formerly Hana Bank) SINGAPORE Commerzbank Ag SWITZERLAND
Mizuho Bank, Ltd. Singapore Branch SINGAPORE Credit Europe Bank (Suisse) S.A. SWITZERLAND
Nordea Bank Ab Singapore Branch SINGAPORE Deutsche Bank Ag Zurich Branch SWITZERLAND
Oversea-Chinese Banking Habib Bank Ag Zurich SWITZERLAND
Corporation Limited SINGAPORE HSBC Bank Plc SWITZERLAND
Qatar National Bank Qnb SINGAPORE Nordea Bank S.A., Luxemburg,
Rabobank Singapore SINGAPORE Zweigniederlassung, Zuerich. SWITZERLAND
Shinhan Bank, Singapore Branch SINGAPORE Ubl (Switzerland) Ag SWITZERLAND
Skandinaviska Enskilda Zuercher Kantonalbank SWITZERLAND
Banken Ab (Publ) SINGAPORE Bank of America, N.A. Taipei TAIWAN
Standard Chartered Bank SINGAPORE Citibank Taiwan Limited TAIWAN
Standard Chartered Bank Deutsche Bank Ag, Taipei Branch TAIWAN
(Singapore) Limited SINGAPORE JP Morgan Chase Bank, N.A.,
Sumitomo Mitsui Banking Corporation SINGAPORE Taipei Branch TAIWAN
The Hongkong And Shanghai King's Town Bank TAIWAN
Banking Corporation Limited SINGAPORE Mega International Commercial
Toronto Dominion Bank SINGAPORE Bank Co., Ltd. TAIWAN
U.B.A.F. - Union De Banques Standard Chartered Bank
Arabes Et Francaises SINGAPORE (Taiwan) Limited TAIWAN
Unicredit Bank Ag Singapore Sumitomo Mitsui Banking
Branch (Hypovereinsbank Ag Corporation Taipei Branch TAIWAN
Singapore Branch) SINGAPORE Taiwan Cooperative Bank Ltd TAIWAN
Wells Fargo Bank, Na SINGAPORE The Bank of New York Mellon,
Woori Bank, Singapore SINGAPORE Taipei Branch TAIWAN
Ceskoslovenska Obchodna Union Bank of Taiwan TAIWAN
Banka, A.S. SLOVAKIA Amana Bank Limited TANZANIA, UNITED
Commerzbank Ag SLOVAKIA REPUBLIC of
Unicredit Banka Slovenija D.D. SLOVENIA Habib African Bank TANZANIA, UNITED
Citibank South Africa SOUTH AFRICA REPUBLIC of
Firstrand Bank Limited SOUTH AFRICA Bangkok Bank Public Company
Habib Overseas Bank Limited SOUTH AFRICA Limited THAILAND
HBZ Bank Limited SOUTH AFRICA Bank of America, N.A. Bangkok THAILAND
Standard Chartered Bank SOUTH AFRICA Citibank N.A. THAILAND
Abanca Corporacion Bancaria, S.A. SPAIN Deutsche Bank Ag, Bangkok Branch THAILAND
Aresbank, S.A. SPAIN JP Morgan Chase Bank, N.A.,
Banco Bilbao Vizcaya Argentaria S.A. SPAIN Bangkok Branch THAILAND
Banco De Sabadell, S.A. SPAIN Krung Thai Bank Public
Bank of America Merrill Lynch Company Limited THAILAND
International Limited SPAIN Mizuho Bank, Ltd., Bangkok Branch THAILAND
Bankia S.A. SPAIN Siam Commercial Bank Pcl., The THAILAND
Caixabank, S.A. SPAIN Standard Chartered Bank (Thai) Pcl THAILAND
Commerzbank Ag SPAIN Sumitomo Mitsui Banking Corporation THAILAND
HSBC Bank Plc SPAIN Arab Tunisian Bank TUNISIA
Kutxabank, S.A. SPAIN Citibank N.A. TUNISIA
Amana Bank Plc SRI LANKA Societe Tunisienne De Banque TUNISIA
Axis Bank Ltd. SRI LANKA Aktif Yatirim Bankasi A.S. TURKEY
Bank of Ceylon SRI LANKA Albaraka Turk Participation Bank TURKEY
Habib Bank Ltd. SRI LANKA Citibank A.S. TURKEY
Hatton National Bank Plc SRI LANKA Denizbank A.S. TURKEY
Hongkong And Shanghai Habib Bank Ltd. TURKEY
Banking Corporation Limited, The SRI LANKA HSBC Bank A.S. TURKEY
Mcb Bank Ltd. SRI LANKA Icbc Turkey Bank A.S. (Formerly
Nations Trust Bank Plc SRI LANKA Tekstil Bankasi A.S.) TURKEY
People's Bank,Head office SRI LANKA Kuveyt Turk Katilim Bankasi A.S. TURKEY
Public Bank Berhad SRI LANKA Odeabank A.S. TURKEY
Sampath Bank Plc SRI LANKA Sekerbank T.A.S. TURKEY
Standard Chartered Bank SRI LANKA Turkiye Cumhuriyeti Ziraat
Danske Bank SWEDEN Bankasi A.S. TURKEY
Nordea Bank Ab (Publ) SWEDEN Turkiye Finans Katilim Bankasi A.S. TURKEY
Skandinaviska Enskilda Banken SWEDEN Turkiye Garanti Bankasi A.S. TURKEY
Svenska Handelsbanken SWEDEN Turkiye Halk Bankasi A.S.
Arab Bank (Switzerland) Ltd SWITZERLAND (Head office) TURKEY
Banca Popolare Di Sondrio (Suisse) SWITZERLAND Turkiye Is Bankasi A.S. TURKEY
Banque Cantonale Vaudoise SWITZERLAND Turkiye Vakiflar Bankasi T.A.O. TURKEY

Turkland Bank A.S. (T-Bank) TURKEY Bank of Tokyo-Mitsubishi Ufj, Ltd. UNITED STATES of AMERICA
Yapi Ve Kredi Bankasi A.S. TURKEY BNP Paribas U.S.A - New York
Ziraat Katilim Bankasi A.S. TURKEY Branch UNITED STATES of AMERICA
Jsc The State Export-Import Branch Banking and Trust Company UNITED STATES of AMERICA
Bank of Ukraine UKRAINE Capital One, N.A. UNITED STATES of AMERICA
Pjsc 'Bank Credit Dnepr' UKRAINE Cathay Bank UNITED STATES of AMERICA
Prominvestbank UKRAINE Citibank N.A. UNITED STATES of AMERICA
Abu Dhabi Commercial Bank UNITED ARAB EMIRATES Continental Exchange Solutions, Inc. UNITED STATES of AMERICA
Abu Dhabi Islamic Bank UNITED ARAB EMIRATES Deutsche Bank Ag UNITED STATES of AMERICA
Ajman Bank Pjsc UNITED ARAB EMIRATES Deutsche Bank Trust
Axis Bank Limited, Difc Branch Company Americas UNITED STATES of AMERICA
(Regulated By Dfsa) UNITED ARAB EMIRATES First Tennessee Bank N.A. UNITED STATES of AMERICA
Banque De Commerce Et De Gulf International Bank UNITED STATES of AMERICA
Placements Sa-Difc Branch UNITED ARAB EMIRATES Habib American Bank UNITED STATES of AMERICA
Citibank N.A. UNITED ARAB EMIRATES Hanmi Bank UNITED STATES of AMERICA
Deutsche Bank Ag UNITED ARAB EMIRATES HSBC Bank Usa, N.A. UNITED STATES of AMERICA
Dubai Islamic Bank UNITED ARAB EMIRATES International Finance Corporation UNITED STATES of AMERICA
Emirates Islamic Bank UNITED ARAB EMIRATES Intesa Sanpaolo Spa (Formerly
Emirates Nbd Bank Pjsc UNITED ARAB EMIRATES Banca Intesa Spa New York) UNITED STATES of AMERICA
First Abu Dhabi Bank Pjsc UNITED ARAB EMIRATES Israel Discount Bank of New York UNITED STATES of AMERICA
Habib Bank Ag Zurich UNITED ARAB EMIRATES JP Morgan Chase Bank, N.A. UNITED STATES of AMERICA
Habib Bank Limited UNITED ARAB EMIRATES Keb Hana Bank. New York
HSBC Bank Middle East Limited UNITED ARAB EMIRATES Agency (Formerly Hana Bank
Keb Hana Bank Abudhabi Branch UNITED ARAB EMIRATES New York Agency) UNITED STATES of AMERICA
Mashreqbank Psc. UNITED ARAB EMIRATES Keybank National Association UNITED STATES of AMERICA
MCB Bank Limited UNITED ARAB EMIRATES Malayan Banking Berhad UNITED STATES of AMERICA
National Bank of Fujairah UNITED ARAB EMIRATES Mashreqbank Psc., New York Branch UNITED STATES of AMERICA
National Bank of Kuwait (S.A.K.). UNITED ARAB EMIRATES Mizuho Bank, Ltd. New York Branch UNITED STATES of AMERICA
National Bank of Ras Al-Khaimah, The UNITED ARAB EMIRATES National Bank of Pakistan UNITED STATES of AMERICA
Noor Bank P.J.S.C. UNITED ARAB EMIRATES New York Commercial Bank UNITED STATES of AMERICA
Standard Chartered Bank UNITED ARAB EMIRATES Nonghyup Bank, New York Branch UNITED STATES of AMERICA
Unicredit S.P.A. UNITED ARAB EMIRATES Nordea Bank Ab (Publ),
Union National Bank UNITED ARAB EMIRATES New York Branch UNITED STATES of AMERICA
United Arab Bank UNITED ARAB EMIRATES Pnc Bank, N.A. UNITED STATES of AMERICA
United Bank Ltd. UNITED ARAB EMIRATES Regions Bank UNITED STATES of AMERICA
Allied Irish Bank (Gb) (Aib Group Societe Generale UNITED STATES of AMERICA
(Uk) Plc T/A) UNITED KINGDOM Standard Chartered Bank UNITED STATES of AMERICA
Bank Mandiri (Europe) Limited UNITED KINGDOM State Bank of India (California) UNITED STATES of AMERICA
Bank of America, N.A. London UNITED KINGDOM Sumitomo Mitsui Banking Corporation UNITED STATES of AMERICA
Bank of China UNITED KINGDOM Suntrust Bank UNITED STATES of AMERICA
British Arab Commercial Bank Plc UNITED KINGDOM The Bank of New York Mellon UNITED STATES of AMERICA
Byblos Bank Europe S.A. U.S. Bank UNITED STATES of AMERICA
(London Branch) UNITED KINGDOM Unicredit Bank Ag (Hypovereinsbank) UNITED STATES of AMERICA
Citibank N.A. UNITED KINGDOM Unitibank UNITED STATES of AMERICA
Commerzbank Ag UNITED KINGDOM Wells Fargo Bank, N.A. UNITED STATES of AMERICA
Deutsche Bank Ag UNITED KINGDOM Woori Bank, Los Angeles UNITED STATES of AMERICA
Emirates Nbd Pjsc UNITED KINGDOM Woori Bank, New York UNITED STATES of AMERICA
Gulf International Bank B.S.C. UNITED KINGDOM Banco Itau URUGUAY
Habib Bank Uk UNITED KINGDOM Citibank N.A. VIETNAM
Habib Bank Zurich Plc UNITED KINGDOM Deutsche Bank, Ho Chi Minh
HSBC Bank Plc UNITED KINGDOM City Branch VIETNAM
HSBC Bank Plc (Rfb) UNITED KINGDOM JP Morgan Chase Bank, N.A.,
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Keb Hana Bank UNITED KINGDOM Vietnam Bank for Agriculture and
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Nordea Bank Ab (Publ) Woori Bank Vietnam Limited VIETNAM
London Branch UNITED KINGDOM Woori Bank Hochiminh VIETNAM
Northern Bank Limited (Trading Saba Islamic Bank YEMEN
As Danske Bank) UNITED KINGDOM Shamil Bank of Yemen and Bahrain YEMEN
Skandinaviska Enskilda Banken United Bank Limited YEMEN
London UNITED KINGDOM
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Banco Do Brasil S.A UNITED STATES of AMERICA
Bangkok Bank Public Company
Limited, New York UNITED STATES of AMERICA
Bank of America, N.A. UNITED STATES of AMERICA

Branch Network
Alhamdulillah, Meezan Bank has established 660 branches in 181 cities across Pakistan. This is a milestone that is not only the success story of
Meezan Bank but also the continuing success story of Islamic banking in Pakistan. With this extensive network, our existing and potential customers
are now closer than ever in attaining Islamic banking at their doorstep. All branches provide real time online banking facilities to customers.
As the first and largest dedicated Islamic bank in Pakistan, Meezan Bank's team continues to build on its Vision of establishing ‘Islamic banking as
banking of first choice’. One of the key objectives of the Bank is to have its footprint strategically placed throughout the country enabling public to
avail the benefits of Shariah-compliant banking in their neighbourhood.
The Bank presently operates in the following cities of Pakistan:
Abbottabad Jacobabad Nawabshah

Ahmedpur East Jalalpur Jattan Nowshera
Alipur Jahanian Okara
Alipur Chatha Jampur Pabbi
Arifwala Jaranwala Pakpattan
Athara Hazari Jauharabad Panjgoor
Attock Jehangira Pasrur
Badin Jhang Pattoki
Bahawalnagar Jhelum Peshawar
Bahawalpur Kabirwala Phalia
Balakot Kahror Pakka Pirmahal
Bannu Kahuta Pishin
Batagram Kamalia Qalanderabad
Bhalwal Kamoki Qila Saifullah
Bhakkar Karachi Quaidabad
Burewala Karak Quetta
Chakwal Kasur Rahim Yar Khan
Chamman Khairpur Raiwind
Charsadda Khairpur Tamewali Rajanpur
Chichawatni Khanbela Rashidabad
Chiniot Khanewal Rawalakot
Chishtian Khanpur Rawalpindi
Chitral Khar Rawat
Choa Saidan Shah Kharian Renala Khurd
Chowk Sarwar Shaheed Khushab Sadiqabad
Chung Khuzdar Sahiwal
Dalowali Kohat Sakrand
Dadu Kot Addu Sambrial
Dadyal Kot Radha Kishan Samundri
Daharki Kotla Arab Ali Khan Sanawan
Daska Kotli Sanghar
Depalpur Kunri Sara-e-Alamgir
Dera Ghazi Khan Lahore Sargodha
Dera Ismail Khan Lalamusa Shahdadpur
Digri Lalian Shahdadkot
Dina Larkana Shakargarh
Dinga Layyah Sheikhupura
Dukki Liaquatpur Shikarpur
Dunyapur Lodhran Sialkot
Ellahabad Loralai Shahkot
Faisalabad Mailsi Shorkot
Fatehpur Manawala Shujabad
Fazilpur Mandi Bahauddin Skardu
Fort Abbas Malakwal Sukkur
Gaggo Mandi Manga Mandi Swabi
Gawadar Mansehra Swari
Ghakhar Mandi Mardan Swat
Ghotki Matta Talagang
Gilgit Mehar Tando Adam
Gojra Mehrabpur Tando Allahyar
Gujar Khan Mian Channu Tando Mohammad Khan
Gujranwala Mianwali Tarlai
Gujrat Mirpur Azad Kashmir Taunsa
Hafizabad Mirpurkhas Taxila
Haripur Moro Timergara
Haroonabad Multan Toba Tek Singh
Hasilpur Muridkay Turbat
Hassanabdal Muslim Bagh Umerkot
Havelian Muzaffarabad Vehari
Haveli Lakha Muzaffargarh Wah Cantt
Hub (Lasbela) Nankana Sahib Wazirabad
Hyderabad Narowal Yazman
Islamabad Naushahro Feroz Zhob
For 2019, Meezan Bank has planned to expand its Branch Network by 125 branches countrywide. Meezan Bank's mission is to provide its
customers dedicated and pure Islamic banking facilities with the greatest of convenience and personalized services. It remains the Bank's
endeavour to establish solid foundations of Islamic banking in Pakistan.

Abbottabad Bannu Choa Saidan Shah
Abbottabad Branch Bannu Branch Choa Saidan Shah Branch
Plot No. 843-846, Mansehra Road, Property No. 322-D, 322-D/A, Outside Khasra No.3125,5440/3124, Khewat
Abbottabad Qasayban Gate Hospital Road, Bannu No.438/1295, 189/363, Chakwal Road,
Tel: (92-992) 344701-3 Tel: (92-928) 620841-3 Choa Saidan Shah
Tel: (92-543) 579108-9
City Abbottabad Branch Bannu II Branch
Jamal Building , Eidgah Road, Khata No.332, Khasra No.2093, Moza Chowk Sarwar Shaheed
Abbottabad Fatima Khell, Salami Chowk, Dera Ismail Chowk Sarwar Shaheed Branch
Tel: (92-992) 341990-03 Khan Road Bannu Khata No.18,Multan Road, Chowk
Tel: (92-928) 610341-3 Sarwar Shaheed, Tehsil Kot Addu
Nawan Shehr Branch District Muzaffargarh
Mandi Ali Khan Baba, Murree Road Batagram Tel: (92-066) 2210117-19
Nawan Shehr Abbottabad Batagram Branch
Khasra No. 3359/971 & 3360/971, Chung
Ahmedpur East Kahata No. 880/1351 & 881/1351, Sultan Chung Multan Road Branch
Ahmedpur East Branch Market, Ajmeera, Batagram Main Stop Chung, Main Multan Road,
Property No. 338, Block-IV, Kutchery Tel: (92-997) 310850-51 Chung, Lahore
Road, Ahmedpur East Tel: (92-42) 35404761- 63
Tel: (92-62) 2273261-2 Burewala
Burewala Branch Dadu
Alipur Multan Road, Opp. College Road, Dadu Branch
Alipur Branch Burewala Ground Floor, Nareja Shopping Centre,
Khata No.230, Khasra No.13714, Ward Tel: (92-67) 3773751-4 Kutchery Chowk, Near College Road,
No.18, Near College Chowk, Multan Dadu
Road, Alipur Vehari Bazar Branch Tel: (92-245) 710816-8
Tel: (92-066) 2700731-34 Property 44 Block-F, Vehari Bazar,
Burewala. Dadyal
Alipur Chatha Tel: (92-67) 3351112-13 Dadyal Branch
Alipur Chatha Branch Plot No. 313, Hussain Shopping Centre,
Khewat No.743, Khatoni No.1129, Bhalwal Main Bazar Dadyal, Mirpur Azad Kashmir
Khasra No.3577/1694, Alipur Chatha Bhalwal Branch Tel: (92-5827) 465881-3
Tel: (92-055) 6333405-6 Property No. 941/935/20, Khewat
No.770, Khatooni No.791, Block-04, Daharki
Arifwala Main Liaqat Shaheed Road, Bhalwal Daharki Branch
Arifwala Branch Tel: (92-48) 6642383-4 Survey No.446, Deh Daharki, Tappo
Shop No.68-69-A, Main City road, Daharki, Taluka Daharki
Timber Market, Arifwala Bhakkar Tel: (92-723) 641385-7
Tel: (0457) 834502-3 Bhakkar Branch
Plot No.203, Shops No.203/1, 203/2, Dalowali
Athara Hazari 203/3, Jhang Road, Chisti Chowk, Dalowali Branch
Dargahi Shah Branch Bhakkar Khewat No.34, Khatooni No.77-83,
Khatooni No.493, 505, Khewat No.121, Dalowali Jammu Road Sialkot
Layyah Road, Adjacent Siraj Sugar Mills, Chakwal Tel: (92-052) 3206033-5
Dargahi Shah, Tehsil Athara Hazari, Chakwal Branch
District Jhang B-VI/4-A, Bab-e-Chakwal, Talagang Daska
Road, Chakwal Daska Branch
Attock Tel: (92-543) 543381-4 Rest House Chowk, Gujranwala Road,
Attock Branch Daska
G-4, Block G, Siddiqui Road, Attock City. Chamman Tel: (92-52) 6612837-41
Tel: (92-57) 2700811-12 Chamman Branch
Khasra # 579-580 Jogi Ram Road, Depalpur
Badin Trunch Bazar, Chamman Depalpur Branch
Badin Branch Tel: (92 826) 618355 Khewat No. 2100/2053, Khatooni No.
Survey No.206, Ward No.4, Agro Dal 3159, Kutchery Road Depalpur
Area Civil Hospital Road, Badin Charsadda Tel: (92 44) 4544550-51
Mardan Road Charsadda Branch
Bahawalnagar Shop No. 286-287, Khata No.486, Sultan Dera Ghazi Khan
Bahawalnagar Branch Building, Main Mardan Road Charsadda Dera Ghazi Khan Branch
Shop No. 12, Grain Market, Tel: (92-91) 9220171-73 Jampur Road, Dera Ghazi Khan
Minchanabad Road, Bahawalnagar Tel: (92-64) 2474255-7
Tel: (92-63) 2271611-2 Shabqadar Branch
Khasra No.3976/339-340-401, Khata Sangham Chowk D.G Khan Branch
Bahawalnagar II Branch No.656/1780, 663/1789, Shabqadar Khata No 711, Khasra No 91/12/3,
Khatooni No.1996, Block No.22, Khan Mauza Gadai Shumali, Sangham Chowk,
Baba Road , Bahawalnagar. Chichawatni Dera Ghazi Khan
Chichawatni Branch Tel: (92-64) 2460613-15
Bahawalpur Property No. 278-279, Adjacent National
Circular Road Branch, Saving Centre, G.T. Road, Chichawatni Dera Ismail Khan
Circular Road, Near Milad chowk, Tel: (92-405) 487601-03 Dera Ismail Khan Branch
Bahawalpur Plot No.04. Shops No. 168-170. Circular
Tel: (92-62) 2732145-47 Chiniot Road Bazar Area cantt Dera Ismail Khan.
Sharah-e-Quaid-e-Azam Chiniot Branch Tel: (92-966) 717257-8
Dubai Chowk Branch P-468, AI-469 II,
Property No. 209-CB, Ahmedpur East Shahrah-e-Quaid-e-Azam, Chiniot Digri
Road, Near Dubai Chowk, Bahawalpur Tel: (92-47) 6331103-4 Digri Branch
Tel: (92-62) 2889417-18 Survey No. 413, Ward No.B, Tando
Chishtian Ghulam Ali Road, Digri
Satellite Town Branch Chishtian Branch Tel: (92-233) 870213-16
Plot No. 20/D, Street No.30, One Unit Plot No. 109, B- Block, Opposite Ghalla
Chowk, Satellite Town, Bahawalpur Mandi Gate, Chishtian Dina
Tel: (92-62) 2285303-04, 2285306-07 Tel: (92-63) 2509301-2 Dina Branch
Al-Bilal Shopping Centre, Main Chowk,
Shahi Bazar Branch Chitral G.T. Road, Dina, Distt. Jhelum
Property No. 3 BIV-400 Zanana Hospital Chitral Branch Tel: (92-544) 636119-21
Chowk Shahi Bazar, Bahawalpur. Ataleeq Bazar, Main By-Pass Road
Tel: (92-62) 2730042-43 Chitral Dinga
Dinga Branch
Balakot Chilas Khewat No.1246, Khatooni No.2599,
Balakot Branch Chilas Branch Khasara # 4165 Fowara Chowk Kharian
Khasra No. 3727/1882 Opposite Police Abu Bakar Siddique Chowk, Main Bazar Road Dinga
station, Naran Road,Balakot Chilas Tel: (053) 7401692-94
Tel: (92-05812) 450673-74

Dukki Jhang Road Branch Ghakhar Mandi
Dukki Branch Plot No. S-29-30, Near Ayub Colony, Ghakhar Mandi Branch
Plot No.329, Nana Sahab, Ziarat Road, Opposite Motor Market, Jhang Road, Khewat No.1959, Khatooni No.2726, G. T
Dukki Faisalabad Road Ghakhar Mandi
Tel: (92-824) 666013 Tel: (92-41) 2650854-6 Tel: (92-055) 3832743-744
Dunyapur Kotwali Road Branch Ghotki
Dunyapur Branch P-66, Kotwali Road Faisalabad Ghotki Branch
Khewat No. 189, 225 Khatooni No. 516, Tel: (92-41) 2602586-8 Survey No.10, Deh Odharwali Tappo
517 Dokota Road Dunyapur Ghotki
Tel: (92-60) 8304118-19 Madina Town Susan Road Branch Tel: (92-0723) 600134-36
Plot No. 98/23, Madina Town, Susan
Ellahabad Road, Faisalabad Gilgit
Ellahabad Branch Tel: (92-41) 8557141-3 Gilgit Branch
Khewat No.443, Khatooni No.707-740, Shop No. 433/102, Northern Light
Main Depalpur Road, Ellahabad, Tehsil Mansoorabad Branch Infantry, Welfare Complex Gilgit Baltistan
Chunian, District Kasur Plot No. P-1224 Corner Dipu Bazar, Main Tel: (92-0581) 458039-41
Tel: (92-49) 4751371-73 Jhumra Road, Mansoorabad, Faisalabad
Tel: (92-41) 8734400-02 Gojra
Faisalabad Gojra Branch
Bilal Gunj Market Branch Millat Chowk Branch Al Khalid Shopping Centre, Opposite
P-1154, Islam Nagar, Bilal Gunj Market, B-165, Gulistan colony #2, Surayya Hospital, Tehsil Office Road,
Sargodha Road, Faisalabad Millat Chowk Faisalabad Gojra
Tel: (92-41) 8784051-53 Tel: (92-41) 8784346-47 Tel: (92-46) 3516272-3
Bhowana Bazar Branch Peoples Colony Branch Gujar Khan
150-D. Main Bhowana Bazar, Faisalabad 1/A-II, Peoples Colony-1, Faisalabad Gujar Khan Branch
Tel: (92-41) 2633042-4 Tel: (92-41) 8555002-4 B-III, 215-E, G.T. Road, Gujar Khan
Tel: (92-51) 3515679-83
Canal Road Branch PMC Branch Branch
P-404, 405, Amin Town, Near Kashmir P-1, Allied Moor, Opposite Punjab Gujranwala
Bridge, West Canal Road, Faisalabad Medical College, Jail Road, Faisalabad. Awan Chowk Branch
Tel: (92-41) 8505438-40 Tel: (92-41) 8781381-83 Pindi Bypass Road, Awan Chowk,
Gujranwala
Circular Road Branch Samanabad Branch Tel: (92-55) 3412251-53
Shop # 6,7,8, Jinnah Market, Circular Plot No. P-178/1 A, Main Road,
Road, Faisalabad. Samanabad, Faisalabad Citi Housing Society Gujranwala Branch
Tel: (92-41) 2628261-63 Tel: (92-41) 2663840-2 Plot No.31, Block PH-1-C, Phase-1, Citi
Housing Society, Gujranwala
Civil Lines Branch Sargodha Road Branch Tel: (92-55) 4287480-1
Plot No. 17/K, Civil Lines, Bilal Road, Plot No. 654-656, Near Hafeez Plaza, Ali
Faisalabad Town Sargodha Road, Faisalabad Dal Bazar Branch
Tel: (92-41) 2603471-473 Tel: (92-41) 8785151-3 Property No. BII-19S-31, Near Chowk
Chashma, Dal Bazar, Gujranwala
Clock Tower Branch Satyana Road Branch Tel: (92-55) 4227592-6
P-175, Clock Tower, Karkhana Bazar, 718-I, Batala Colony Main Satyana Road
Faisalabad Faisalabad D.C Colony Branch
Tel: (92-41) 2606085-7 Tel: (92-41) 8500719-20 Shops No.UG-08 - UG-11, Commercial
Centre, Ravi Block, PGECHS, D.C
D-Type Colony Branch Serena Hotel Branch Colony, Gujranwala
P-755-756, Bukhari Chowk, D-Type Serena Hotel, Club Road, Faisalabad Tel: (92-55) 3782805-07
Colony, Faisalabad Tel: (92-41) 2602595-7
Tel: (92-41) 2668806-07 D.C Road Branch
Tata Market Branch Khewat No.391, Khatooni No.407,
Dijkot Road Branch Chak No. 212-RB Main Road, Factory Khasra No.970, D.C Road, Gujranwala
Shop # 85, Dijkot Road, Adjacent to Area, Opposite Madina Centre, Tata Tel: (92-55) 3848019-21
Grain Market, Faisalabad Market, Faisalabad
Tel: (92-41) 2416141-3 Tel: (92-41) 2417555-7 Gondlanwala Road Gujranwala Branch
Khewat No.76, Khatooni No.79, Khasra
Fawara Chowk Faisalabad Branch Yarn Market Branch No.7818, Gondlanwala Road Gujranwala
301-A, Nalka Stop, Main Road, Peoples P-180, Yarn Market, Montgomery Bazar, Tel: (92-55) 3842303-05
Colony No. 2, Fawara Chowk Faisalabad Faisalabad
Tel: (92-41) 8710523-24 Tel: (92-41) 2541501-03 G.T Road Gujranwala Branch
Khasra No.2503, Khewat No.2925,
Ghulam Muhammad Abad Branch Fatehpur Khatooni No.3341, G.T Road,
P-317, Alaf Sani Chowk, Main Saddar Fatehpur Branch Gujranwala
Bazar, Ghulam Muhammad Abad, Khewat No.14, Karor Lal Eisan Road, Tel: (92-55) 4242717
Faisalabad Fatehpur
Tel: (92-41) 2694381- 83 Tel: (92-0606) 841135-37 Hafizabad Road Branch
Khewat # 2116, Khatooni # 2352, Khasra
Gole Cloth Katchery Bazar Branch Fazilpur # 20, Mohallah Baghbanpura, Hafizabad
P-54 Gole Cloth, Katchery Bazar, Fazilpur Branch Road Gujranwala
Faisalabad Khata No.18, Mauza 571/TDA, Rajanpur Tel: (92-55) 4442104-06
Tel: (92-41) 2610373-4 Road, Fazilpur, Tehsil & District Rajanpur
Kashmir Plaza Branch
Gulberg Branch Fort Abbas Kashmir Plaza, Near Ghalla Mandi G.T
P-307-A, Gulberg Colony, Main Bazar, Fort Abbas Branch Road, Gujranwala
Faisalabad Khewat No.347/348, Khatooni No.347, Tel: (92-55) 3847205-8
Tel: (92-41) 2541611-13 Qasba Mandi, Zia-ul-Haq Shaheed Road
Fort Abbas Master City Branch
Hajiabad Branch Tel: (92-063) 2510584-85 Plot No.159 / COM, Block C, Sector
Plot No. P-409, Main Sheikhupura Road Azka, Master City, Gujranwala
Hajiabad Faisalabad Gaggo Mandi
Tel: (92-41) 8846181-83 Gaggo Mandi Branch Model Town Gujranwala Branch
Khasra No.59/3, Khewat No. 56/52, Property No.BXIV-18AS-18/A, Waqia Plot
Jail Road Branch Khatooni No. 218, Opposite Grain No.1-L/B, Model Town Gujranwala
Plot No.17-B, Jail Road, Faisalabad Market, Sheikh Fazal Road, Gaggo Tel: (92-55) 3857314-16
Tel: (92-41) 111 852 852 Mandi
Tel: (92-067) 3500574-75 More Eminabad Branch
Jaranwala Road Branch Khasra No.1282, Khatooni No.8-17, G.T
Property No.P-1, Near Hassan Park, Gwadar Road, More Eminabad, Gujranwala
Corner Farid Road, Main Jaranwala Airport Road Gwadar Branch Tel: (92-55) 3261180-82
Road, Faisalabad Khasra No.575,593-596, Khewat No.202,
Tel: (92-41) 2428241-43 Airport Road Gawadar.
Tel: (92-86) 4210124-25

Peoples Colony Branch Haveli Lakha B-17 Islambad Branch
13-Y/ 7-SITE-1, Peoples Colony Haveli Lakha Branch Mumtaz Plaza Plot No. 43 Commercial
Gujranwala Khewat No. 697/695, Khatooni No. 1065, Area Sector B-17 Block B, Multi
Tel: (92-55) 4240571-3 Pakpattan Road, Near Grain Market, Gardens, Main G.T Road Islamabad
Haveli Lakha. Tel: (92-51) 5203240-3
Qila Didar Singh, Gujranwala
Khasra No.4215 / 184 , Khatooni Hub (Lasbela) DHA Phase II Branch
No.1736, Khewat No.1394, Mohallah Hub Chowki Branch Plot No. 7, Sector A, Near Gate No-3,
Qasurian, Moza Qila Didar Singh, Tehsil Hub City, District Lasbela, Balochistan Kalsum Plaza, DHA Phase-II, Islamabad
& District Gujranwala Tel: (92-853) 310252-3 Tel: (92-51) 5161562-4
Tel: (92-55) 4711103-5
Hyderabad D-17 Islamabad Branch
Shaheenabad Branch Auto Bhan Branch Plot No.A-1, Shop Nos.G 01-04, 06, 24,
Near Gulshan-e-Iqbal Park, GT Road, Shop No 6 & 7, Boulevard Enclave Auto Prime Arcade Main Markaz Margalla
Gujranwala Bhan Road Latifabad No. 3, Hyderabad View Housing Society, D-17/2 Islamabad
Tel: (92-55) 3252041-43 Tel: (92-22) 3821291-8 Tel: (92-51) 2229996-98
Sheikhupura Road Branch Citizen Colony Branch E-11 Markaz Branch
Khewat No. 42, Khatoni No. 43, Khasra Shop No.1-4, Citizen Plaza, Citizen Plot No. 02, 03, 04, Square Eleven Plaza,
No. 182, Mian Sansi, Sheikhupura Road Colony, Jamshoro Road, Hyderabad Islamabad Garden Phase II, Sector
Gujranwala Tel: (92-22)2100904-8 E-11/1 Islamabad.
Tel: (92-55) 4233981-83 Tel: (92-51) 2305691-92
Cloth Market Branch
Satellite Town Gujranwala Branch C/916/918, Guru Nagar, Hyderabad F-6 Markaz Branch
Plot No.40-A, Nursery Chowk, Satellite Tel: (92-22) 2621341-2 Ground & First Floor, Sethi Plaza, Super
Town, Gujranwala Market, F-6 Markaz, Islamabad
Tel: (92-55) 3847191-3 Defence Branch Tel: (92-51) 2601791-5
Shop No. 07, 08 ,09, Block A, Defence
Sialkot Road Branch Plaza, Thandi Sarak, Hyderabad F-7 Jinnah Super Market Branch
Khewat No. 517, Khatooni No. 632, Unit No. 14, Plot No. 12-B, F-7 Markaz,
Khasra No. 227, Wania More, Sialkot Gari Khata Branch Jinnah Super Market, Islamabad
Road Gujranwala City Survey No. F/1054, Tel: (92-51) 2655001-4
Tel: (92-55) 3200102-04 Ward - F, Gari Khata, Hyderabad
Tel: (92-22) 2725671-2 F-8 Branch
Wapda Town Gujranwala Branch Panther Plaza, F-8 Markaz, Islamabad
Block No.13, Wapda Town, Gujranwala Hyderabad Branch Tel: (92-51) 2817403-5
Tel: (92-55) 4283902-5 Saddar Bazar Cantonment, Hyderabad
Tel: (92-22) 2782772 F-10 Markaz Branch
Gujrat Plot No. 2-F, F-10 Markaz, Islamabad
Chowk Pakistan Branch Latifabad Branch Tel: (92-51) 2112762-3
Property No. B-II 849-850, Chowk 3/D Commercial Area, Latifabad No. 7,
Pakistan, Circular Road, Gujrat Hyderabad F-11 Branch
Tel: (92-53) 3522352-4 Tel: (92-22) 3866964-5 Shops No. 2, 3, 9, 10,11 & 12, Ground
Floor, Sardar Arcade, F-11 Markaz,
Gujrat Branch Latifabad-II Branch Islamabad
Amin Fan Building, G.T Road, Gujrat Plot No. A/53 Block-B, Unit No. 05, Shah Tel: (92-51) 2228384-5, 2228388-9
Tel: (92-53) 3538104-7 Latifabad, Hyderabad
Tel: (92-22) 3864281-84 G-8 Branch
Kutchery Chowk Branch Plot No. 40-A , I & T Centre, Jhelum
B-1/92, Opposite Bar Room, Kutchery Market Road Branch Road , G – 8/1 , Islamabad.
Chowk, Gujrat Market Road Hyderabad, Survey No. Tel:(92-51) 2261040 - 41
Tel: (92-53) 3600751-753 2669, 2669/1, Ward-A, Market Road,
Hyderabad G-9 Markaz Branch
Hafizabad Tel: (92-22) 2638362-6 21-B, G-9 Markaz, Islamabad
Hafizabad Branch Tel: (92-51) 2285849-51
Sagar Road Branch, Hafizabad Qasimabad Branch
Tel: (92-54) 7540811-2 Plot No. QEA/R-6/03-4,11-12, G-10 Markaz Islamabad Branch
Housing Scheme No. 1, Main Road Plot No.20-E, G-10 Markaz, Islamabad
Haripur Qasimabad, Hyderabad Tel: (92-51) 2351953-4
Haripur Branch Tel: (92-22) 2670511-5
Rehana Plaza, G.T. Road, Haripur G-11 Branch
Tel: (92-995) 627250-3 SITE Hyderabad Branch Plot No.15, Penorama Arcade,
Plot No. A/3, Fateh Chowk, SITE Area, G-11 Markaz, Islamabad
Main Bazar Branch Hyderabad Tel: (92-51) 2830513-6
Main Bazar, Near Sheranwala Gate, Tel: (92-22) 3880202-03
Haripur G-13 Branch
Tel: (92-995) 615103, 615322 Station Road Branch Plot No 2-A , Qaiser Wasim Plaza, G-13
Shop No.F-438/2, F-438/3, Ward “F”, Markaz, Islamabad
Haroonabad Station Road, Hyderabad Tel:(92-51)2285849 – 50
Haroonabad Branch Tel: (92-22) 2729791-94
14-C, Grain Market, Haroonabad G-15 Markaz Branch
Tel: (92-63) 2251751-2 Islamabad Plot No. 18 , Family Plaza, Jammu &
Aabpara Branch Kashmir Housing Society, G-15 Markaz
Hassanabdal Plot No. Ramna 6/1-4, Aabpara Market, Islamabad
Hassanabdal Branch Sector G-6, Islamabad Tel: (92-51)2328317-8
Khewat No.1756, Khatooni No.2201, Tel: (92-51) 2603061-4
Khasra No.1956 Near Bus Stand Main Ghouri Town Branch
G.T Road Hassanabdal Bahria Enclave Branch Plot No. 11-12 Sadiq Center Phase V-A
Tel: (92-057) 2520708-711 Plot No. 10 – A , Al-Sultan Arcade Main Ghouri Town Islamabad
Enclave Avenue, Bahria Enclave Tel: (92-51) 2157680-83
Hasilpur Islamabad
Hasilpur Branch Tel: (92-51) 5191801-2 Jinnah Garden Branch
68/B, Baldia Road, Hasilpur Plot No.15-16, Twin Tower, Jinnah
Tel: (92-62) 2443300-1 Bani Gala Branch Commercial Centre-1 , Naval Anchorage
Khasra No. 631-632, Khewat No. 504, Road, Main Gate Jinnah Garden,
Havelian Sadaat Market, Main Bazar Bani Gala Islamabad
Havelian Branch Islamabad Tel: (92-51) 5959977-78
Near Old TMA Office, Main Bazar Tel: (92-51) 2612790-92
Havelian, Islamabad Stock Exchange Branch
Distt. Abbottabad Barakahu Branch Room No. 218, 2nd Floor, 55-B,
Tel: (92-992) 811501-3 Fazal ul Haq Plaza, Main Murree Road, Islamabad Stock Exchange Towers,
Baharakahu, Islamabad Jinnah Avenue, Islamabad
Tel: (92-51) 2232881-2 Tel: (92-51) 2894671-4

Jinnah Super Branch Jhang Bahria Town Branch
Plot # Q-13, College Road F-7 Jinnah Rail Bazar Chowk Branch Shop No. 07, Plot Old Customer support
Super Market Islamabad P-864, Block-9, Circular Road, centre, Bahria Town Karachi, Main super
Tel: (92-51) 2656501-5 Rail Bazar Chowk, Jhang highway Karachi, Pakistan.
Tel: (92-47) 7652203-4 Cell: 0304 1927363 - 64 0304-0920612
I-8 Branch
Plot No. 25, VIP Square, I-8 Markaz, Yousaf Shah Road Branch Bahadurabad Branch
Islamabad Khata # 709 Civil Station Near Katachery Plot No.28, Adam Arcade, Bihar Muslim
Tel: (92-51) 4861389-92 Chowk Yousaf Shah Road Tehsil and co-operative Housing Society,
District Jhang Bahadurabad Karachi
I-9 Branch Tel: (92-47) 7652101-104 Tel: (92-21) 34145018-21
Plot No. 2/A, Industrial Area, I-9,
Islamabad Jhelum Baitul Mukkaram Masjid Branch
Tel: (92-51) 4859644-7 Jhelum Branch Shop No. S-3, S-4,Yasir
B-VI-24-S-II, Mehar Plaza, Civil Lines, Apartments,FL-6,Block No. 16,
I-10 Branch Jhelum Gulshan-e-Iqbal, Karachi
Shop No. 7-10, Ahmadal Plaza, Plot No. Tel: (92-544) 611751-5 Tel: (92-21) 34839021-3
3-I, Sector I-10 Markaz, Islamabad
Tel: (92-51) 4432711-3 Kabirwala Baitus Salam Branch
Kabirwala Branch Plot # 22-C, Commercial Street No.03,
I-11 Sabzi Mandi Branch Property No. 162, Khanewal Road, Baitus Salam DHA Phase-IV, Karachi
Plot No.189/A, Sabzi Mandi, I-11, Opposite PSO Petrol Pump, Kabirwala Tel: (92-21) 35805181-85
Islamabad Tel: (92-65) 2400721-3
Tel: (92-51) 4100637-40 Baldia Town No.9 Branch
Kahror Pakka Plot No.ST-21, Saeedabad, Baldia Town
Jinnah Avenue Branch Kahror Pakka Branch No.9, Karachi
Plot No. 37-B, Tahir Plaza, Jinnah Plot No.107/C/4, Khewat No.27, Dunya Tel: (92-21) 32819106-10
Avenue, Blue Area, Islamabad Pur Road, Kahror Pakka, District Lodhran
Tel: (92-51) 2276712-5, 2801112-5 Tel: (92-608) 341016-17 Banaras Branch
Plot No.3, Bacha Khan Chowk Karachi
Naval Complex E-8 Branch Kamoki Tel: (92-21) 36414571-4
Naval Shopping Centre, Naval Complex, G.T Road Kamoki Branch
E-8, Islamabad Main G.T Road, Kamoki Baradari North Karachi Branch
Tel: (92-51) 2261192-93 Tel: (92-55) 6810351-3 Plot No A-45,Sector 11-B, North Karachi
Township, Karachi
PWD Branch Karachi Tel: (92-21) 36900930-34
Plot No. 786-G, Block-C, Pakistan PWD 26 Street DHA Karachi Branch
Employees Co-operative Housing Plot # 15-C, Badar Commercial Street Barkat-e-Hyderi Branch
Society, Lohi Bher, Islamabad No. 1, D.H.A Phase V, Karachi, Tel: D-10, Block-H, Scheme No 2, North
Tel: (92-51) 5170756-8 (92-21) 35161361-65 Nazimabad, Karachi
Tel: (92-21) 36705073-159
Soan Garden Branch Abdullah Haroon Road Branch 162-146-194-215
Plot No. SC-17, Iftikhar Shopping Mall, S/1, Plot No. P.R 2/31/5, Preedy
Main Double Road, Soan Garden Quarters, Abdullah Haroon Road, Beaumont Plaza Branch
Islamabad Karachi Plot No.4, Shop No.7 & 8, Beaumont
Tel: (92-51) 5739501 - 2 Tel: (92-21) 32700143-5 Road, Civil Lines Quarters, Karachi
Tel: (92-21) 35642370-74
74-E Blue Area Branch Abul Hasan Isphani Road Branch
Unit No. 03-04 , Plot No.74-East Ajaib Plot No. 25-A, Main Abul Hasan Isphani Bhittai Colony Korangi Branch
Plaza, Blue Area Islamabad Road, Azeem Khan Goth, Plot No.395, Block “A”, Bhittai Colony,
Tel: (92-51) 2605693-97 Gulshan-e-Iqbal, Block 4-A, Karachi Korangi, Karachi
Tel: (92-21) 34810729-32 Tel: (92-21) 3515-1741-45
Jacobabad
Jacobabad Branch Alaska Residency Branch Bilawal Chowk Branch
Survey No.764/1, Old College Shop Number 11-13 Plot No.A, K.D.A Plot No. Commercial 7/1, Green Belt
Road Ward No.02, Jacobabad Scheme No.33 Safora Goth Scheme-33, Residency, Shop No 4 & 5, Block 2 ,
Tel: (92-0722) 650276-78 Gulistan-e-Johar Karachi Scheme 5, Clifton Karachi
Tel: (92-21) 35830628,729,1448, 2083
Jahanian Al-Hilal Society Branch
Main Bazar Jahanian Branch Nafees Arcade, Plot No. SC-14, Chandni Bin Qasim National Highway Branch
Khewat No. 71, Khatooni No. 73, Khasra Chowk, KDA Scheme No.7, Main Survey # 435, Deh Landhi,Taluka Bin
No. 139, Main Bazar Jahanian University Road, Karachi Qasim town,Karachi
Tel: (92-21) 34124111-5 Tel: (92-21) 35012365, 35012376
Jehangira
Jehangira Branch Al-Tijarah Centre Branch Block-4 Clifton Branch
Khata No.121/126 Khasra No.896/629/2 S-8, Ground Floor, Al-Tijarah Centre, Plot No. COM-2/A, Block 4, Scheme No.
Moza Dheri Khattak , G.T Road Block-6, PECHS, Shahrah-e-Faisal, 5, Kehkashan, Clifton, Karachi
Jehangira Karachi Tel: (92-21) 35879531-35
Tel: (92-21) 34169030-4
Jalalpur Jattan Block-A North Nazimabad Branch
Circular Road Branch Alamgir Road Branch Plot No. SD-1, Block A, KDA Scheme
Khewat No.1729/1730 Khatooni No. Plot No. Z-484, Block No-3, Bhadur Yar No. 2, North Nazimabad, Karachi
2355-2358 2359-2362, Circular Road, Jang Co-operative Housing Society, Tel: (92-21) 36722430-4
Jalalpur Jattan Alamgir Road, Karachi
Tel: (92 53) 3430313-5 Tel: (92-21) 34140968 Block-E North Nazimabad Branch
Plot No.ST-4, Shop # A/D-66 & 67, Block
Jampur Allama Iqbal Road Branch "E" Hyderi, North Nazimabad, Karachi
Jampur Branch Plot No. 830-C, Central Commercial Tel: (92-21) 36724294-96
Indus Highway, Dera Road, Area, Block 2, PECHS, Allama Iqbal
Opposite Nadra Office, Jampur Road, Karachi Block-F North Nazimabad Branch
Tel: (92-604) 569446-8 Tel: (92-21) 34373263 Shop # 9,10,11 & 12 Sub-Plot # SC14-3
Plot No SC-14,Block -F, KDA Scheme
Jaranwala Azizabad Branch No. 2 ,Samar Residency North
Jaranwala Branch Shop Nos. S-3, S-4, S-5, S-6, Plot Nazimabad Karachi
P-92, Main Hassan Road, Jaranwala City No.CS-54, Azizabad, Block 7, Federal B Tel: (92-21) 36723549-554
Tel: (92-041) 4312084-85-86 Area, KDA Scheme No.16, Karachi
Tel: (92-21) 36376211-15 Block-18, Gulistan-e-Jauhar Branch
Jauharabad Rufi Lacks Drive, Unit No. 34 & 35,
Jauharabad Branch Babar Market Landhi Branch Perfume Chowk, Block-18,
Plot No.191, Khewat No.681, Khatooni 2-A/167,168 & 169, Babar Market, Gulistan-e-Jauhar, Karachi
No.1101, Block No.14, Main Bazar Landhi Township, Karachi Tel: (92-21) 34198130-134
Jauharabad Tel: (92-21) 35011071-5
Tel: (0454) 720683-84

Block-3 A Gulistan-e-Jauhar Branch Drigh Road Branch Gulshan-e-Iqbal Block 6 Branch
Palm Residency, Unit # 01, Block- 3A, Plot No.26/183 Drigh Road Cantt Bazar Plot No. FL-6 /1/A-4, Al-Shams Plaza,
Kamran Chowrangi, KDA Scheme-36, Faisal Base, Karachi Block-6, KDA Scheme No. 24, Rashid
Gulistan-e-Jauhar Tel: (92-21) 34687172-76 Minhas Road, Gulshan-e-Iqbal, Karachi
Tel: (92-21) 34161921-25 Tel: (92-21) 3481-3521-25
Do Talwar Clifton Branch
Boat Basin Branch The Plaza Plot No.G-7, Showroom No. Gulistan-e-Jauhar Branch
Shop No. 40-43, Commercial Sub 24, 25, 26,27, KDA Scheme 5, Clifton Do Plot No ST-19,Block 15, Scheme
Plot No. FL-7/C/4 of Plot No. 7, Block Talwar Block-9, Karachi 36,Gulistan-e-Jauhar, Karachi
No. 5, Clifton, Karachi Tel: (92-21) 3530-8762-3 Tel: (92-21) 34030251-55
Tel: (92-21) 35870697-8
F.B Area Branch Gulshan-e-Maymar Branch
Bohrapir Branch C-12, Block-10, F.B. Area, Karachi Flat No. A-102 & shop no. 1 & 2, Sub Plot
Ranchore Quarter, Prince Street, Tel: (92-21) 36805370 no. SB-1 / X / IV,Gulshan-e-Maymar
Bohrapir, Karachi Karachi
Tel: (92-21) 32712915-8, 32712909 Federal B Industrial Area Branch Tel: (92-21) 36350513-4-5
Plot No. ST-7, Block – 22,
Boulton Market Branch Federal B Industrial Area, Karachi Gulzar-e-Hijri Branch
Plot No. 8-9/D-I, Serai Quarters, Boulton Tel: (92-21) 36834625-29 Plot No.B-14, Al-Memon Welfare
Market, M.A. Jinnah Road, Karachi Cooperative Housing Society, Unit
Tel: (92-21) 32467811-5 Queens Road Branch No.1-3, Sector 13-A, Scheme-33
Plot No. 1-A, Sheet QR-9, Queens Gulzar-e-Hijri, Karachi
Bombay Bazar Branch Quarters, Queens Road, Karachi Tel: (92-21) 3465-5860-64
Shop No. G-2, Survey No. 7 Sheet No.
03 (Old No. A-15/10, Bunder Quarters, FTC Branch Hub River Road Branch
Karachi) Ground Floor, Block-B, Finance & Trade Building No. 06 Commercial Sector No.
Tel: (92-21) 32468701-05 Centre, Shahrah-e-Faisal, Karachi 04, Haroon Bahria Coperative Housing
Tel: (92-21) 35650771-5 Society, Hub River Road, Karachi
Buffer Zone Branch Tel: (92-21) 32364236-9
R-914, Sector-15-A/1, Buffer Zone, Garden West Branch
North Karachi, Karachi Shop No. 9,10,11 & 12 , Plot Survey Hussainabad Branch
Tel: (92-21) 36965851-5 no.130/1 Sheet No. G-R.2, Garden West, Plot # 1109 & 1110,Block # 3, Ground
Karachi Floor,Pakistan Memon Education &
Cattle Colony Landhi Branch Tel: (92-21) 32241383-87 Welfare Society Hussainabad Karachi
Plot No. 45/B, Cattle Colony Landhi, Tel: (92-21) 36320461
Karachi Gizri Branch
Tel: (92-21) 35135-181- 85 Plot No. K-7/9 Gizri, Chaudhry I.I.Chundrigar Branch
Khalique-uz-Zaman Colony, Bakhshan Shop No. 9 & 10,Gul Tower,
Commercial Avenue Phase VII DHA Village, Bazar Area, Clifton, Karachi I.I.Chundigar Road Karachi
Branch Tel: (92-21) 35865670-4 Tel: (92-21) 32423676
Plot No.33-D, Khy-e-Sehar Lane 4,
Commercial Avenue, Phase VII, D.H.A, Gole Market Nazimabad Branch Indus Mehran Cooperative Housing
Karachi Plot No. 2-E/3, Gole Market Nazimabad, Society Branch
Tel: (92-21) 35171201-05 Karachi Plot No.14-A , Naclass No.55, Indus
Tel: (92-21) 3641 8011-15 Mehran Co-operative Housing Society
Chawla Market Nazimabad No.1 Branch Malir, Karachi
Shop No.1-4, Bukshi Residency, Plot Gulbahar Branch Tel: (92-21) 3449640-44
No.3, Sub-Block-K, Chawla Market Shop No. G-8, G-9, G-10 and G-11, Sub
Nazimabad No.1, Karachi Plot No.20/3, Sana Towers, Firdous Jama-e-Millia Malir Branch
Co-operative Housing Society, Golimar Plot No.S-25, Survey No.282,
Clifton Branch Chowrangi, Nazimabad, Karachi Gulzar-e-Ibrahim, Jama-e-Millia Malir,
Shop # 5, 6, Ground Floor, Al-Karam Tel: (92-21) 36701155-9 Karachi
Centre, BC1, Block-7, Main Clifton Tel: (92-21) 3416-2270-74
Road,Clifton, Karachi, Add Space Shop Gulbai SITE Area Branch
# 4, Plot # BC 2, Block 7 Clifton, Plot No. C-25, Gulbai, SITE Area, Jamshed Road Branch
Kararachi Karachi Plot No. 713/6, Shaheen Tower,
Tel: (92-21) 35372060-64 Tel: (92-21) 32594711-5 Jamshed Quarters, M.A Jinnah Road,
Karachi
Cloth Market Branch Gulberg Branch Tel: (92-21) 34923281-5
Shop # 14, Ground Floor, Atique Market, Plot No. B-1, Block 18, Gulberg, F.B.
Survey No.1-2, Survey Sheet B.R.2, Area, Karachi Jodia Bazar Branch
Bunder Quarters, Karachi Tel: (92-21) 36829112-5 MR5/115-114 Darya Lal Street, Jodia
Tel: (92-21) 32418137-39 Bazar, Karachi
Gulshan-e-Iqbal Branch Tel: (92-21) 32473326-28
Darakhshan Society Malir Branch Shop No. 1, 2, 3 & 4, Plot No.B-41, Block
Plot No. A-16/1, Darakhshan Society, 13-A, Gulshan-e-Iqbal, Karachi Joffa Towers Branch
Malir Township, Karachi Tel: (021) 4811901-905 SB-23 & 24,Office No. G2, 102-104,
Tel: (92-21) 34492788, 34493005 Joffa Towers, Main University Road,
Gulshan-e-Iqbal Block-5 Branch Block-13-C, Gulshan-e-Iqbal, Karachi
Denso Hall Branch Plot No. 9/ FL-3 KDA Scheme No. 24, Tel: (92-21) 34830141-5
Plot No. 21 Ward No. W-07, Denso Hall Gulshan-e-Iqbal Block-5, Main Rashid
M.A. Jinnah Rood Karachi Minhas Road, Karachi. Jubilee Market Branch
Tel: (92-21) 32776731-5 Plot No.64, Ghulam Hussain Hidayatullah
Gulshan-e-Hadeed Branch Colony, Jubilee Market Karachi
DHA Phase II Extension Branch Plot No.C-27, Sub Sector 8-C/I, Phase I, Tel: (92-21) 32720454-58
C-69 & C-71, 12th Commercial Street, Gulshan-e-Hadeed, Steel Town, Karachi
Phase-II (Extension), DHA, Karachi Tel: (92-21) 34712151-155 Kaghzi Bazar Branch
Tel: (92-21) 35311953-8 Shop No. 7,G-1 & S-1 Old Town, Main
Gulistan-e-Jauhar Block-1 Branch Kaghzi Bazar Karachi
DHA Phase I Branch Shops No. 1, 2, 3, 7, Ground Floor,
Ground Floor, Plot No. 119, Samrah Arcade, Plot No. SB-04, Block 1, Katchi Gali No.2 Branch
DHA Phase I, Korangi Road, Karachi KDA Scheme No. 36, Gulistan-e-Jauhar, No. G-1, situated at Katchi Gali No. 2,
Tel: (92-21) 35396854-8 Karachi Marriot Road, Karachi
Tel: (92-21) 34013922-6 Tel: (92-21) 32443526-7
DHA IV Branch
Plot No 78, 10th, Commercial Street, Gulshan Block 2 Branch K.A.E.C.H.S Branch
Phase IV, DHA, Karachi Plot No. SB 08, Gulshan-e-Iqbal Block 2, Plot No. SA / 49 (Commercial) Block No.
Tel: (92-21) 35314861-4 Near Rab Medical Centre, Karachi 4, Karachi Administrative Employees
Tel: (92-21) 34971232 Co-operative Housing Society LTD.
Dhorajee Branch Karachi
Plot # 35/182 C.P & Berar Cooperative Gulshan Chowrangi Branch Tel: (92-21) 34302920
Housing Society, Karachi Gulistan-e-Erum, Sub-Plot # 5-A/1-10,
Tel: (92-21) 34860861-4 Plot No.FL-5, Block-3, Scheme 24
Gulshan-e-Iqbal, Karachi
Tel: (92-21) 34811849-56, 34810762

Karachi Cantt Branch Lasbella Branch New Challi Branch
Shop No.1, Salalah Apartment, Civil Plot No.460, G-2, Garden East Lasbella, Fakhri Trade Centre, Plot No. SR – 6/10,
Lines Quarters, Dr. Dawood Pota Road, Karachi Shahra-e-Liaquat, New Challi, Karachi.
Near Cantt. Station, Karachi Tel: (92-21) 32244290-294 Tel: (92-21) 32602121-126
Tel: (92-21) 3562-0180-84
Lea Market Branch New Town Branch
KDLB Branch Plot No. 3/20, Khajoor Bazar, Lea Plot No.371 Kutiana Centre, Shop
2nd Floor, KDLB Building, West Wharf Market, Karachi No.10-13, Jamshed Quarters, Karachi
Road, Karachi Tel: (92-21) 32521650-4 Tel: (92-21) 34943581-5
Tel: (92-21) -32314103-07
Liaquatabad Branch New Truck Stand Hawksbay Branch
Keamari Branch No.18, Plot No. 1/19, S.M.Taufiq Road, Plot No.F-1/4 to F-1/9, K-28 Phase-I
Plot No. 29/1, Opposite Jungle Shah Liaquatabad, Karachi Trans Lyari, Hakwsbay Road, Karachi
College, Keamari Town, Karachi Tel: (92-21) 34125673 Tel: (92-21) 32373204-13
Tel: (92-21) 32863170-4
Liaquat Market Malir Branch New Fruit & Vegetable Market Super
Khadda Market Branch Plot No. LS-38, ST-32 Block-04, Malir Highway Branch
(Khayaban-e-Shamsheer) Branch Township Liaquat Market Malir, Karachi Block No. C-X, New Fruit & Vegetable
Plot No.4-C, Khadda Market, Tel: (92-21) 34502880-84 Market, Super Highway, Karachi
Khayaban-e-Shamsheer, DHA Phase V, Tel: (92-21) 3687-0190-94
Karachi Light House Branch
Tel: (92-21) 35240811-5 Plot No. 57, Jahangir Mansion, Shop Nishtar Road Branch
No.14, Thatia Compound Street, Property No.26A, S4/B, S-5A,S-5/5B/6,
Khadija Market, Block I North Nazimabad Wadhumal Odharam Quarters, Light Plot # 31/1/15, SHEET NO L.R.9,
Branch House, M.A Jinnah Road, Karachi Lawrence Quarters, Nishtar Road,
Plot No. SC-4, Shop Nos. 2, 2-A, 3, 4,5 Tel: (92-21) 32742775-6 Karachi
Khadija Market, Block I North
Nazimabad Karachi M.A. Jinnah Road Branch Nishat Commercial Branch
Tel: (92-21) 3672-2790 - 94 M.R2/52, Sheba Centre, M.A Jinnah Plot No. 1-C/I, Nishat Lane No. 6, Phase
Road Karachi VI, DHA, Karachi
Khalid Bin Waleed Branch Tel: (92-21) 32467032-7036
Plot No. 89/N, Muhammadi Terrace, North Karachi Branch
Block-2, Khalid Bin Waleed Road, Marriott Hotel Branch Plot # SA-6 (ST-8),11-C-1 North Karachi
P.E.C.H.S, Karachi Marriott Hotel, Abdullah Haroon Road, Tel: (92-21) 36965051-55
Tel: (92-21) 34383914-16 Karachi
Tel: (92-21) 35683491 North Karachi Industrial Area Branch
Kharadar Branch Plot # 1-A, Sector # 12-C,North Karachi
Shop No.1, Ground Floor, Malir Cantt Branch Town ship Karachi
Al-Fatima Plaza, Paria Street, Ghulam Army Shopping Complex, Malir Cantt, Tel: (92-21) 36963117-121
Hussain Kassam Quarters, Kharadar, Karachi
Karachi Tel: (92-21) 34196121-25 North Napier Branch
Tel: (92-21) 32316510-4 Shop No. 12,Poona wala, Trade
Malir Cantt II Branch Tower,W.O 1/55, Opposite City Court
Khayaban-e-Bokhari Branch Army Defence Centre, New Chowk Chabba Gali,Main North Napier Road
Plot No 22-C, Khayaban-e-Bokhari, Road, Near Check Post No.06, Malir Karachi
Ph-VI, DHA Karachi Cantonment Karachi Tel: (92-21) 32713530-34
Tel: (92-21) 35243561-5 021-34900543-47
North Nazimabad Block-M Branch
Khayaban-e-Rahat Branch Maskan Chowrangi Branch Plot No. SB-2, Block-M,
Plot No. 32 /C, Shop No.1-5, Plot No. FL-12/B-41, Allah Noor North Nazimabad, Karachi
Khayaban-e-Rahat Phase VI, DHA Apartment, Block 7, KDA Scheme No. Tel: (92-21) 36627054-5
Karachi 24, Maskan Chowrangi, Gulshan-e-Iqbal
Tel: (92-21) 3585-7531-35 Karachi Nursery Branch
Tel: (92-21) 34835100-04 Plot No.13-A, Survey Sheet No. 35-P/1,
Khayaban-e-Sehar Branch Amber Pride show room No.1, Ground
9-C, Shahbaz Commercial. Lane 1, Mehmoodabad Branch Floor, Block-06 P.E.C.H.S, Nursery,
Khayaban-e-Sehar, Phase VI, DHA, Plot No. 178 -179, Survey No. 250- 251 Karachi
Karachi Sheet No. MAC-II Mehmoodabad Tel: (92-21) 34396510-14
Tel: (92-21) 35349307-13 Tel: (92-21) 35319051 - 055
Orangi Town Branch
Khayaban-e-Shamsheer Branch Metroville SITE Branch Plot No. LS-15, Sector 6-E, Orangi Town,
23-C, Main Khayaban-e-Shamsheer, Plot No.E-11, E-12 Block-1 Metroville, Karachi
Phase V (Ext) DHA, Karachi SITE Karachi Tel: (92-21) 36694370-4
Tel: (92-21) 35247600-04 Tel: (92-21) 36752601-5
Orangi Town Sector 10 Branch
Khayaban-e-Ittehad Branch Model Colony Branch Plot No.LS-06-07, Sector No.10, Orangi
Plot No.124-N, Khayaban-e-Ittehad DHA Plot No.6, Survey No.N-55, Tina Square Town Karachi
Phase VI Karachi Housing Project,Deh Mehran,Tappo,
Tel: (92-21) 3515-5911-15 Malir Karachi Panorama Center Branch
Tel: (92-21) 34492445-7 Survey # 248 , Shop # 6 & 6-A Panorama
Korangi Branch Centre, Staff Line, Fatima Jinnah Road,
Plot No. LS-3, ST-3/1, Sector Muhammad Ali Society Branch Saddar, Karachi
No.15,Korangi Industrial Area, Karachi Plot No 5/F, Muhammad Ali Memorial Tel: (92-21) 335642587-91
Tel: (92-21) 35114324-5 Co-Operative Housing Society, Karachi
Tel: (92-21) 34301864-67 P & O Plaza Branch
Kokan Colony Baldia Town Branch Ground Floor, P & O Plaza, Opposite
Plot No. 328 Deh Moach Kokan Colony Nanakwara Branch Muhammadi House, I.I Chundrigar Road,
Baldia Town Karachi. Plot No. WO-1/13, Muhammadi Manzil, Karachi
Tel: (92-21) 32591300-04 Syedna Tahir Saifuddin Road, Paan Tel: (92-21) 32467901-5
Mandi, Nanakwara, Karachi
Korangi II Branch Tel: (92-21) 327141014-105 Pakistan Chowk Branch
Q 37, Sector 33-A, Main Road Korangi, Ground Floor, Plot No. 08, Survey Sheet
Karachi Nadir House Branch No. RB-5, Pakistan Chowk Arambagh,
Tel: (92-21) 35059215-16 Nadir House Branch, I.I. Chundrigarh Road, Karachi
Road Karachi Tel: (92-21) 32219651-6
Korangi Industrial Area II Branch Tel: (92-21) 32410085-88
Plot No.27 & 28, Sector - 16, Korangi Paposh Nagar Branch
Industrial Area, Karachi Nayabad Branch Plot No.18, Row No.1, Block-E, Block
Tel: (92-21) 3514-4341-45 Plot No. No. 113/A, Shop No.1-6, 18-29, No-V, Paposh Nagar Nazimabad, Karachi
Shah Waliullah Road Nayabad Lyari, Tel: (92-21) 36700640-44
Korangi Darul Uloom Branch Karachi
Sector 28, Darul Uloom, Main Korangi Tel: (92-21) 32385631-5 PIB Colony Branch
Industrial Road, Karachi Plot No 390-391, PIB Colony Main Road,
Tel: (92-21) 35123134-35, 35123138-40 Nazimabad No. 3 Branch Karachi
3-A-1/13 Nazimabad No. 3, Karachi Tel: (92-21) 34191201-205
Tel: (92-21) 36707431-4

Plaza Quarters Branch Shaheed-e-Millat Road Branch Timber Market Branch
Plaza Square Karachi, Bombay Building, Plot No. 7-A/228, Block-3, Dehli Plot No. 03, Main Timber Market,
City Survey No. 37/22, Off M.A. Jinnah Mercentile Muslim Cooperative Housing Siddique Wahab Road, Karachi
Road, Karachi Society Ltd, Shaheed-e-Millat Road, Tel: (92-21) 32740060 - 64
Tel: (92-21) 32751560, 32751124 Karachi
Tel: (92-21) 34140151-155 Urdu Bazar Branch
PNSC (Lalazar) Branch Shops No. 11 & 12, Anfal Centre,
37-A, Lalazar Area, Off Moulvi Saba Avenue Branch Plot No. RB-9/1, Rambagh Quarters,
Tamizuddin Khan Road, Karachi Plot # 22-C-C, Saba Avenue, DHA Phase Urdu Bazar, Karachi
Tel: (92-21) 35636240 VI, Karachi Tel: (92-21) 32603031-5
Tel: (92-21) 35155901-905
Port Qasim Branch University Road Branch
Plot No. W2/1-3, North Western Industrial South Asia Pakistan Terminal Branch Plot No. SB-25, S-1, S-2 & S-3, Block-1
Zone, Port Qasim, Authority Karachi Plot No.1, South Asia Pakistan Terminal Gulistan-e-Jauhar, Main University Road,
Tel: (92-21) 34154304 - 9 Building, Container Port Road Keamari, Karachi.
Karachi Tel: (92-21) 34170471-5
Power House Branch
Plot No. R-17, Sector 5-C/4, North Shah Faisal Colony Branch UP Auto Market Branch
Karachi CB-33, Al Falah Society, Shah Faisal Plot No.LS-54 & 49 ST-10 Sector 11- I
Tel: (92-21) 36902608-12 Colony, Karachi North Karachi
Tel: (92-21) 34686271-3 Tel: (92-21) 6900681-87
Rashid Minhas Road Branch
Ground Floor, Aqsa Tower, Block-C, Shamsi Society Malir Halt Branch Water Pump Branch
Rashid Minhas Road, KDA Scheme Plot No. CM 44 & 45, Ground Floor Plot No. BS-13,Block No.14, Federal
No.33, Karachi Shamsi cooperative Housing Society B.Area Karachi.
Tel: (92-21) 34978062, 34978064 Ltd., Malir Halt, Karachi Tel: (92-21) 36332443, 36332523
Tel: (92-21) 34682405-07
Razi Road Branch West Wharf Road Branch
Plot No 44-A, Nice Trade Orbit, Block 6, Shershah Branch Plot No.14, A & K Chambers West Wharf
Razi Road, PECHS, Karachi Plot No. D.283/15 & 16, Quality Godown Road, Karachi
Tel: (92-21) 34370151-155 Shershah Road, SITE Karachi Tel: (92-21) 32203445-9
Tel: (92-21) 32562411-15
Regal Chowk Branch Karak
Shop No. 1-B, Survey No. 273/2, Sidco Centre Branch Karak Branch
Sheet A.M (Part -2), Rahman Mansion, Shop No.13, Sidco Centre Din Khasra Nos.615-616-243-236-233-235,
Artillery Maidan Quarter, Frere Road, Muhammad Wafai Road Karachi Tehsil Road, Karak
Saddar, Karachi Tel: (92-21) 35224850-54 Tel: (092) 7211032-34
Tel: (92-21) 32701151-5
Shireen Jinnah Colony Branch Kahuta
Saddar Branch Plot No. 4-B,Block No. 1, Clifton Karachi Kahuta Branch
Survey No.70/2, Survey Sheet No.SB-6, Tel: (92-21) 35833025, 35836758, Khewat # 15-16 Khatooni # 17-20, Gul
Javeria Gems & Jewels centre, Raja 35836780 Siraj Plaza Rawalpindi Road Kahuta
Ghazanfar Ali Khan Road, Saddar Bazar Tel: (92-051) 3313015-16
Quarters Karachi Sir Syed Road Branch
Tel: (92-21) 35224601-05 Plot No. 152-S, Ground Floor, Sir Syed Kamalia
Road, Block 2, PECHS, Karachi Kamalia Branch
Saeedabad Baldia Town Branch Tel: (92-21) 35143500-4 Khasra No. 4169-4191, Muhallah
Plot No.604 & 609/1-A, Sector 5-J, Mitianwala, Railwary Road, Kamalia
Saeedabad Baldia Town, Karachi SITE Branch Tel: (92-046) 3413590-94
Tel: (92-21) 32817511-5 Plot No. B/9-C, Site Area, Karachi
Tel: (92-21) 32550328-31 Kasur
Safora Chowk Branch Kasur Branch
Shop No. 3, 4, 5 & 6, Ground Floor, SITE-II, Super Highway Branch 216-9, R-IV, Railway Road, Kasur
Prime Tower, Plot No. SB-20, Block 7, Showroom # 1 & 2, Plot # D/41-A, SITE- Tel: (92-492) 2764999
KDA Scheme No. 36, Super Highway Phase-II, Karachi
Safora Chowk, Gulistan-e-Jauhar, Tel: (92-21) 36880342-349 Khairpur
Karachi Khairpur Branch
Tel: (92-21) 34660661-5 Soldier Bazar Branch Shop No.1,2,3 Ground Floor
G-2, Ground Floor, Plot No. SOL.B-2/16, Civic Centre, Mall Road, Khairpur
Sharafabad Branch VII-E/100/1, Soldier Bazar Quarters, Tel: (92-243) 715772-73
Plot No.525, Block-3, Shop No. 1-3, Karachi
Ground Floor, Karachi Memon Tel: (92-21) 32290320-24 Khairpur Tamewali
Cooperative Housing Society, Khairpur Tamewali Branch
Sharafabad, Karachi Steel Market Branch Khairpur Adda, Hasilpur Road, Khairpur
Tel: (92-21) 3494-2941-45 Plot No.5, Shop No12, Al-Hamd Centre, Tamewali
Ranchore Quarter Steel Market,
Shaheen Complex Branch Baba-e-Urdu Road Karachi Khanewal
Shaheen Commercial Complex, M.R. Civil Club Road Branch
Kayani Road, GPO Box 121, Karachi Stock Exchange Branch Khewat No.13, Khatooni No.13, Civil
Tel: (92-21) 111 852 852 Office # 41, 42 & 43 Ist Floor Stock Club Road, Khanewal
Exchange Building, I.I Chundrigar Road
Shahrah-e-Faisal Branch Karachi Khanewal Branch
Showroom No.4-7, Ibrahim Trade Tower, Tel: (92-21) 32470920-8 Plot No. 624-625, Block No. 8, Sir Syed
Plot No.1, Survey Sheet No.35-P/I, Road, Khanewal
Block-7-8, Maqbool Co-Operative Super Highway Branch Tel: (92-65) 2556625-7
Housing Society, Shahrah-e-Faisal, Highway Trade Centre, Shop # 11-12-13
Karachi &14 Block-2, Sector1-A, Super Highway, Khanpur
Tel: (92-21) 34322183-9 Karachi Khanpur Branch
Tel: (92-21) 36830076-78, 36830045 & Kutchery Road, Khanpur
Shahrah-e-Quaideen Branch 36830107 Tel: (92-68) 5577127-8
Plot # 19/A, Block 2, PECHS, Main
Shahrah-e-Quaideen Road, Karachi Tahir Villa Chowrangi Branch Khan Bela
Tel: (92-21) 3418 8601-05 Plot No. 74/1, Block 5, Tahir Villa Khan Bela Branch
Chowrangi, F.B.Area, Karachi Main K.L.P Road, Khan Bela
Shahrah-e-Orangi Branch Tel: (92-21) 36364452-54 Tel: (92-068) 5580100-101
Plot No. CI-59, Sector 11, Orangi
Township, Orangi, Karachi Tariq Road Branch Khar Bajour
Tel: (92-21) 36699621-25 Plot No. 138-A, Block No. 02, PECHS, Khar Bajour Branch
Tariq Road, Karachi Madina Market, Main Munda Road,
Shadman Karachi Branch Tel: (92-21) 34300180-84 Opposite Tanki Market, Khar Bazzar,
Plot No. ST 21/2A Sec.No 14-B, District Bajour
Shadman, North Karachi Textile Avenue Branch
Tel: (92-21) 36940650-54 Plot No. H-6, SITE Survey Sheet No. 21,
Near Site Police Station SITE, Karachi
Tel: (92-21) 32584850-59

Kharian Bahria Town Branch Civic Centre Johar Town Branch
G.T Road Kharian Branch Plot No.68/69-B, Sector-C, Bahria Town Property No. 20, Civic Centre, Johar
Ground Floor, Barakat Plaza, Main G.T Lahore Town, Lahore
Road, Kharian Tel: (92-42) 35976270-72 Tel: (92-42) 35189531-3
Tel: (92-537) 533497-8
K-Block, Model Town Branch Cloth Market Branch
Khushab Plot No. 8 & 9, Commercial Market, F-2332, Rrara Tailian, Near Kashmir
Katha Chowk Khushab Branch K-Block, Model Town, Lahore. Block, Azam Cloth Market, Lahore
P-4106-27-1, Sargodha Road, Katha Tel: (92-42) 35915601 Tel: (92-42) 7380461-65
Chowk, Khushab
Tel: (92-454) 711683-4 Badami Bagh Auto Market Branch CMA Society Branch
Property No. 355,357 Circular Road, Plot No. 29, Block-A, Military Accounts
Khuzdar Outside Kashmiri Gate, Badami Bagh Co-operative Housing Society, Lahore
Khuzdar Branch Auto Market, Lahore Tel: (92-42) 35460863-66
Khasra No. 3042/1569, Sultan Ibrahim Tel: (92-42) 37104010-13
Road, Khuzdar College Road Branch
Bedian Road Branch House # 15, Block 2, Sector C-1,
Kohat Khasra No. 3799, Mauza Lidhar, Main Township College Road Lahore
Kohat Branch Bedian Road, Lahore Tel: (92-42) 35157181-85
1st Floor, Jinnah Municipal Plaza, TMA, Tel: (92-42) 35749607-10
Near King Gate, Bannu Road, Kohat DHA Phase I Branch
Tel: (92-922) 523037-40 Bedon Road Branch 167- G, DHA Phase I, Lahore
Plot No.15 Bedon Road, Lahore Tel: (92-42) 35742891-2
Kot Addu Tel: (92-42) 36290273-76
Kot Addu Branch DHA Phase III Branch
Khewat No. 264/241,Ward No. 2, Mauza Begum Kot Branch Plot No. 97-Y, DHA Phase III
Pirhar Sharqi, G.T.Road, Plot # 4/A Geya Musa, Begum Kot Commercial, Opposite Sheba Park,
Kot Addu. Shahdrah, Lahore Lahore
Tel: (92-66) 2240333-37 Tel: (92-42) 37929103-05 Tel: (92-42) 35742582-3
Kot Radha Kishan Bilal Gunj Lahore Branch DHA Phase IV Branch
Kot Radha Kishan Branch Khewat No.1611 Khatooni No.2842 210-CCA, Phase-IV DHA, Lahore
Shop No. 9, Grand City Center, Main Khasra No.3807, Bilal Gunj Sheesh Tel: (92-42) 35747761-2
Raiwind Pattoki Road, Kot Radha Kishan Mahal Road, Lahore
Tel: (92-049) 2382011 Tel: (92-42) 3716657- 58 DHA Phase V Branch
Plot No.6 - CCA Phase V, DHA Lahore
Kotli AJ&K Bhubtian Branch Tel: (92-42) 37182334-5
Kotli AJ&K Branch Khasra No.4202/711, Bhubtian Chowk,
Mouza Pang Piran, Pindi Road, Kotli AJK Raiwind Road Lahore DHA Phase VI Branch
Tel: (92-05826) 444673-4-5 Tel: (92-42) 35320413-15 Plot No. 101, Main Boulevard Phase VI
(Commercial), DHA Lahore
Kotla Arab Ali Khan Brandrath Road Branch Tel: (92-42) 35006026, 042-35006028-9
Kotla Arab Ali Khan Branch 46 Brandrath Road, Lahore
Khewat No.123/119, Khatooni Tel: (92-42) 37676388-92 DHA Phase VIII Branch
No.571,573, Kotla Arab Ali Khan, Tehsil Plot No.C-3, Commercial Broadway,
Kharian, District Gujrat Burki Road Branch Phase VIII, DHA Lahore
Tel: (92-053) 7575703-704 Khasra No.159, Khatooni No.30, Khewat Tel: (92-42) 38107774-75
No.20, Main Burki Road, Adjacent
Kunri Paragon City, Lahore Doctors Hospital - Johar Town Branch
Kunri Branch Tel: (92-42) 37167203-4 Plot No.3-A, G-Block,
Plot No. 12, Survey No. 263, Doctors Hospital, Johar Town, Lahore
Station Road, Deh Gorraho, Kunri, Bund Road Branch Tel: (92-42) 35453153-55
District Umerkot Property No. SW XI 1-S-1/B/6,
Tel: (92-238) 558412-15 Main Bund, Road, Lahore Eden City Branch
Tel: (92-42) 37482671-3 Plot No 19, Block A, Eden City Lahore
Lahore Cantt
Akbar Chowk Branch Canal Bank Road Branch Tel: (92-42) 37185438-39, 37185443
Plot No.46, Block-10 Sector B-1 Mughalpura Lahore Branch PlotNo. 125,
Township Lahore StNo. 33, Naya Pul, Punj Pir Road, Canal EME Housing Society Branch
Pabx: (92-042) 35201425-26 Bank Road, Mughalpura, Lahore Plot No. 1 & 37, Block-D Commercial,
Tel: (92-42) 365543-44 EME Sector, DHA, Lahore
Akbari Mandi Branch Tel: (92-42) 37498956-8
Outside Akbari Mandi, Circular Road, Canal View Housing Society Branch
Lahore Plot No.16, Commercial Area, Canal Faisal Town Branch
Tel: (92-42) 37660969-70 View Housing Society, Lahore Plot # 16, Block B, Faisal Town, Lahore
Tel: 0304-1927540, 0304-1927541, Tel: (92-42) 35202116 - 8
Al-Saeed Chowk Branch 0304-1927542
Al-Saeed Chowk, near Phool Mandi, Falcon Complex Gulberg III Branch
Saggian By pass, Jaranwala Road, Cavalry Ground Branch Emporium No. 3, Upper Ground Floor,
Tehsil Ferozwala, District Sheikhupura, 72-Commercial Area, Cavalry Ground, PAF Falcon Complex, Gulberg III Lahore
Lahore Lahore Cantt Tel: (92-42) 35925093-94, 35925288
Tel: (92-42) 37163873-5 Tel: (92-42) 36619780-3
Ferozpur Road Branch
Allama Iqbal Town Branch Chowk Yateem Khana Branch Opposite DESCON Head Quarters,
06 Asif Block Main Boulevard Allama Bund Road Chowk Yateem Khana 18-KM Main Ferozpur Road, Lahore
Iqbal Town Lahore Lahore Tel: (92-42) 35401873-6
Tel: (92-42) 37806882 - 37806887 Tel: (92-42)37467113-16
Garhi Shahu Branch
Avian Chowk Branch Chowk Baba Attar Ichra Branch Property No.84, Allama Iqbal Road,
H # 44, Nadeem Shaheed Road, Avian Plot # SXVIII-44-S-110/A, Ichra II, Chowk Garhi Shahu, Lahore
Chowk, Near Pakki Thatti, Samanabad, Baba Attar, Lahore Tel: (92-42) 36294191-92
Lahore Tel: (92-42) 37534152-54
Tel: (92-42) 37563352-54 Ghalib Market Branch
Chungi Amar Sadhu, Branch 64 A-II, Gulberg III, Ghalib Market,
Azam Cloth Market Branch Khasra # 1050, DAR Plaza, Chungi Amar Lahore
19-Bismillah Block, Azam Cloth Market, Sadhu , Main Ferozpur Road, Lahore Tel: (92-42) 35772147-9
Lahore Tel: (92-42) 35922114-17
Tel: (92-42) 37642011-3 G.T Road Daroghawala Branch
Circular Road Branch Plot No. 329-F, Main G.T Road,
Badami Bagh Branch 133-Circular Road Near PTCL Exchange Daroghawala, Lahore
35-Peco Road, Badami Bagh, Lahore Lahore Tel: (92-42) 36550501-3
Tel: (92-42) 37369610-3 Tel: (92-42) 37642001-05

Gulberg Branch Mini Market College Road Gulberg II Raja Market, New Garden Town, Branch
60-Main Boulevard Gulberg, Lahore Branch 81-Ahmad Block, Raja Market, New
Tel: (92-42) 35879870-2 Plot No.25-L, College Road, Gulberg II Garden Town, Lahore
Lahore Tel: (92-42) 35913345-7
Gulshan-e-Ravi Branch Tel:(92-42)35246614-16
Plot No. 9, Block F, Gulshan-e-Ravi, Ravi Road Branch
Lahore Model Town C-Block Lahore Branch 33, Main Ravi Road, Opposite Bilal
Tel: (92-42) 37404822-5 Shop Nos.16-17-18, Central Commercial Masjid, Lahore
Market, C-Block Model Town Lahore Tel: (92-42) 37706835-7
Haider Road Township Branch
434, A-1, Haider Road Township, Lahore Model Town Link Road Branch Riwaz Garden Branch
Tel: (92-42) 35157101-3 Plot No. 13, Model Town Link Road, Plot No.317, Riwaz Garden, Near
Lahore Chuhburji Lahore
Hall Road Branch Tel: (92-42) 35942355-8 Tel: (92-42) 37242381-84
S-50-R-19, Hall Road, Lahore
Tel: (92-42) 37211806-8 Moon Market Allama Iqbal Town Lahore Sabzazar Branch
Branch Plot No.325, Block – B, Main Boulevard,
Ichra Branch Plot No. 10, Kashmir Block, Main Sabzazar, Lahore
156-Main Ferozepur Road, Ichra, Lahore Boulevard, Allama Iqbal Town Lahore Tel: (92-42) 35962280-82
Tel: (92-42) 37522989-1 Tel: (92-42) 35427936-40
Saddar Bazar Branch
Islampura Branch Moti Bazar Branch Property No. 1184, Dubai Chowk, Main
Property No. 61, Main Bazar, Islampura, Property No. F-2627, Ali Arcade Chowk Tufail Road, Saddar Bazar, Lahore
Lahore Choona Mandi, Moti Bazar Lahore Tel: (92-42)-36622824-6
Tel: (92-42) 37117463-4 Tel: (92-42) 37338870-75
Samanabad Branch
J-III Johar Town Branch Mustafa Abad Branch Plot No. 210, Main Poonch Road,
Plot No. 12, Block- J-III, Property No. SE-6-R-148, Allama Iqbal Samanabad, Lahore
Opposite Expo Centre Johar Town, Road, Mustafa Abad, Lahore Tel: (92-42) 37587213-5
Lahore Tel: (92-42) 36886051-3
Tel: (92-42) 35311862 - 864 Shad Bagh Branch
Mustafa Town Branch 13-A, Tajpura Chowk, Near PTCL
Johar Town Branch Property # 15, Mamdot Block, Mustafa exchange, Shad Bagh, Lahore
63/R-1, M.A Johar Town Branch, Lahore Town Scheme, Lahore Tel: (92-42) 37600667-9
Tel: (92-42) 35314631-4 Tel: (92-42) 35418031-33
Shadman Colony Branch
Karim Block Branch Multan Road Branch 91 Shadman Colony - 1, Shadman,
Baig Plaza, 21 Commercial Zone, Karim S-94, R-334, Multan Road, Near Social Lahore
Block, Allama Iqbal Town, Lahore Security Hospital, Multan Chungi, Lahore Tel: (92-42) 37522976-9
Tel: (92-42) 35296701-5 Tel: (92-42) 37492383-85
Shahdra Branch
Kahna Nau Ferozpur Road Branch Naseerabad Ferozpur Road Branch 113 G.T. Road, Lahore
Khasra # 1508, Hakeem Colony, Mouza Plot No.405 Naseerabad Gulberg III, Tel: (92-42) 37921266-7
Gujjumatta Tehsil Cantt, Kahna Nau, Main Ferozpur Road, Lahore
Ferozpur Road, Lahore Tel: (92-42) 35441601-3 Shahdra Town Branch
Tel: (92-42) 35270205-7 Property No.N-130-R-32/26/1, Jahangir
New Anarkali Bazar Branch Park, Shahdra Town Lahore
Kot Abdul Malik Branch Property No.S-64-R-132-134/2 New
Mouza Sharqpur Khurd, Kot Abdul Malik Anarkali Bazar Lahore Shahalam Market Branch
Main Sheikhpura Road, Lahore Tel: (92-42) 37360590-91, 37311977-83 D-2050, Fawara Chowk,
Tel: (92-42) 37340743-5 Inside Shahalam Market, Lahore
New Fruit Market Branch Tel: (92-42) 37377340-3
Khayaban-e-Jinnah Road Branch Property No.116-117 New Fruit Market
Plot No. 630/325 Air line Housing Ravi Road Lahore Shahkam Chowk, Canal Road Branch
Society, Block B, Phase I, Iqbal Avenue Tel: (92-42) 37729213-17 Plot 47-48, Block B, Mohlanwal Scheme,
Cooperative Housing Society, Shahkam Chowk Canal Road, Lahore
Khayaban-e-Jinnah Road, Lahore New Garden Town Branch Tel: (92-42) 35966778
Tel: (92-42) 35955461-63 Ground Floor, Ibrahim Centre, 1-Aibak
Block, New Garden Town, Lahore Shah Jamal Branch
Khayaban-e-Iqbal Branch Tel: (92-42) 35941474-7 Property No.158, Shah Jamal Road,
Plot No.34-A, Khayaban-e-Iqbal, Lahore
Sector-XX, Phase III-C,DHA, Lahore New Muslim Town Branch Tel: (92-42) 35912954-56
Tel: (92-42) 356948833-34-35-38 Plot # 15-B New Muslim Town, Ayubia
Market, Lahore Shalimar Garden Branch
Liberty Market Branch Tel: (92-42) 35926800-02 Chowk Shalimar Bagh, G.T Road,
Shop # 14-17, Liberty Shopping Centre, Baghban Pura, Lahore
Gulberg III, Lahore Nishat Colony Branch Tel: (92-42) 36846584-8
Tel: (92-42) 35760813, 35760814 Khasra No 296 Nishat Colony Lahore
Cantt Shalimar Link Road Branch
L.D.A Scheme Tajpura Branch Tel: (92-42) 35896011-13 Khata No. 222, Khatooni No.397, Khasra
Plot No.425 A, L.D.A Scheme Tajpura No.2240, Near Shalimar Hospital
Lahore Punjab Cooperative Housing Society Shalimar Link Road Lahore
Tel: (92-42) 36631463-5 Branch Tel: (92-42) 36810102-06
66-F, Phase I, Punjab Co-operative
Main Boulevard Branch Housing Society, Ghazi Road, Lahore State Life Society Branch
E-44-1-4-COM, Iqbal Park Commercial, Cantt Plot No.1011, Sector F, State Life
Main Boulevard DHA, Lahore Tel: (92-42) 35924683-4 Society, Lahore
Tel: (92-42) 36621482-4 Tel: (92-42) 35474180-81-82
Q-Block DHA Phase II Branch
Main G.T Road UET Branch 295-Q Commercial Area, Phase II DHA, Sultan Pura Branch
Opposite To Sabzi Mandi , Singhpura Lahore Property No. 16, Hide Market Sultan Pura
Stop Main Gt Road, Near UET, Lahore Tel: (92-42) 35708324-7 Lahore
Tel: (92-42) 36862452-58
Maulana Shaukat Ali Road Branch Qartaba Chowk Branch
Plot No. 4-E Jauhar Town, Adjacent Qartaba Chowk, Temple Road, Rehman Sunder Industrial Estate Branch
BOR, Main Maulana Shaukat Ali Road Chamber, Lahore Khewat No.331, Khatooni No.338, Near
Lahore Tel: (92-42) 37112406-10 Sunder Industrial Estate Gate-1,Sunder
Tel: (92-42) 35202067-69 -Raiwind Road ,Tehsil Raiwind, Lahore
Quaid-e-Azam Industrial Estate Branch Tel: 0304-1927540, 0304-1927541,
McLeod Road Branch 169 - S, Quaid-e-Azam Industrial Estate, 0304-1927542
SE-10-R-2/12, Nihal Chand Building, Kot Lakhpat, Lahore
Mc'leod Road, Lahore Tel: (92-42) 35215765 T Block Phase II Branch
Tel: (92-42) 36284501-4 Plot No. 07, 2-C, CCA-T Block Phase –II
Lalik Jan Chowk DHA Lahore
Tel: (92-42) 5707383-86

Thokar Niaz Baig Branch Loralai Mirpur Azad Kashmir
171-A, Ali Town Raiwind Road, Lahore Loralai Branch Mirpur Branch
Tel: (92-42) 7516128-30 Plot No. 1060, Zhob Road, Loralai, Plot No. 123, Sector F/1, Sultan Plaza,
Balochistan Kotli Road, Mirpur Azad Kashmir
Tufail Road Branch Tel: (92-824) 4660103 Tel: (92-5827) 438891-3
Shop No.06, 10-11, 33-34 Cantt
Shopping Plaza, Tufail Road Lahore Mailsi Mirpurkhas
Cantt Mailsi Branch Mirpurkhas Branch
Tel: (92-42) 36602701-703 Khewat No.75/73, Khatooni No.99, Plot No. 15, Ward No. A, Adam Mohallah
Colony Road, Mailsi Town, Umerkot Road, Mirpurkhas
Urdu Bazar Branch Tel: (92-67) 3750704- 05 Tel: (92-233) 876103-8
4-Kabeer Street, Urdu Bazar, Lahore
Tel: (92-42) 37116684-7 Manawala Satellite Town Branch
Manawala Branch Survey No.14/4 - 15/12, Satellite Town,
Valancia Town Branch Khatooni No. 1931-1933, Main Bazar, Near Chandni Chowk Mirpurkhas
Plot No.1-D, Valencia Society Lahore near Union Council Office, Old Nankana Tel: (92-233) 861764-5
Tel: (92-42) 35225894-98 Road, Manawala
Moro
Walton Road Branch Manga Mandi Moro Branch
E-29/21-A, Bank Stop, Walton Road, Manga Mandi Branch Property No. 60, Ward 13,
Lahore Kasra No.11809, Khewat No.49 Manga Main Road National Highway, Moro
Tel: (92-42) 36626602-5 Mandi bypass Main Multan Road Tel: (92-242) 411008-14
WAPDA Town Chowk Branch Mandi Bahauddin Multan
Plot No. 429, Block-E, Main Boulevard, Mandi Bahauddin Branch Bahawalpur Bypass Chowk Branch
P.I.A Employees Co-operative Housing Plot No. 5/181 Ward No. 5, Khewat No. 537/530, Khatooni No.796.
Society, Wapda Town Chowk, Lahore Outside Ghallah Mandi, Near Tawakli Shaukat Commercial Center Bahawalpur
Tel: (92-42) 35211591-4 Masjid, Road Near Bahawalpur Bypass Chowk,
Mandi Bahauddin Multan
Wahdat Road Branch Tel: (92-546) 520931-3 Tel: (92-61) 4482702-706
Plot No.16-A, Wahdat Road Branch,
Lahore. Malakwal Bosan Road Branch
Tel: (92-42) 35912954-56 Malakwal Branch Chungi No. 9, Lawyers Colony,
Khewat No.448, Khatooni No.779-789, Bosan Road, Multan
West Wood Colony Branch Badshah Pur Road, Malakwal Tel: (92-61) 6210090-2
Plot No 24, West Wood Colony, Canal Tel: (92-546) 581591-2
Road, Lahore Chowk Fawara Branch
Tel: (92-42) 37498592-93 Katchery Road Branch Khewat No.140, Property No.
Khewat No. 1047-1048, Khatooni 1925/26/27/28, Mouza Taraf Ismail, Near
Zafar Ali Road Branch No.1055-1056 Katchery Road, Chowk Fawara, Abdali Road Multan
Plot No.03, Zafar Ali Road, Gulberg V, Mandi Bahauddin Tel: (92-61) 4570334-38
Lahore Tel: (92-546) 500693-4
Tel: (92-42) 35775758-59 Chowk Shaheedan Branch
Mansehra Property No. 3493, Chowk Shaheedan,
Zahoor Elahi Road Branch Lari Adda Branch Multan
Building No.3-A, Block A, Gulberg II, Near Madni Masjid, Lari Adda, Tel: (92-61) 4502906-9
Zahoor Elahi Road, Lahore Karakuram Highway, Mansehra
Tel: (92-42) 111 852 852 Tel: (92-997) 307640-2 Chungi No.14 Branch
Ground Floor, Al Makkah Centre Chungi
Zarrar Shaheed Road Branch Mansehra Branch No.14, Multan
Khasra No. 3939/3296, Block-B, Meezan Plaza, Near Markazi Jamia Tel: (92-61) 4577572-4
Al-Faisal Town, Zarrar Shaheed Road, Masjid, Abbottabad Road, Mansehra
Lahore Cantt Tel: (92-997) 308315-8 Gulgasht Branch
Tel: (92-42) 36674862 437/C Gulgashat Colony, Multan
Mardan Tel: (92-61) 6511931-2
Lalamusa Bank Road Mardan Branch
Lalamusa Branch Khewat No.1643, Khatooni No.2393, Hussain Agahi Branch
Col. Plaza, Plot No. 9, Camping Ground, Khasra No. 2126-2128, Bicket Gunj, Property No. 2560,
G.T. Road, Lalamusa Bank Road Mardan. Ward No. 10, Hussain Agahi Road,
Tel: (92-53) 513022, 7513032 Tel: (92-937) 9230561-3 Multan
Tel: (92-61) 4512206-7
Main Bazar Lalamusa Branch Par Hoti Branch
Property No.B-9/18/R.H & B-9/26/Shop & Khata No 367 neher chowk Main Bazar Model Town Branch
B-9/27/Shop,Main Bazar Lalamusa Par Hoti Mardan Property No.110/A-111/A, Model Town,
Tel: (92-53) 7511803-04 Tel: (92-937) 560013-14 Multan
Tel: (92-61) 6522183-185
Lalian Matta Swat
Lalian Branch Matta Branch Nawan Shaher Branch
Sargodha Road, Lalian District Chiniot Khasra No.2879, Main Bazar, Baghderai Plot No.92,93,94, LMQ Road,
Road, Matta, District Swat Chowk Nawan Shaher, Multan
Larkana Tel: (92-61) 4785604-07
Larkana Branch Mehar
Property No.1796, Ward No. A, Bank Mehar Branch Old Shujabad Road Multan Branch
Square, Bunder Road, Larkana Plot No. 151, Khairpur Nathan Shah Khewat No.332, Mouza Qutabpur , Old
Tel: (92-74) 4055923-5 Road, Mehar Shujabad Road, Multan
Tel: (92-25)4730913-4 Tel: (92-61) 6303731-34
Layyah
Layyah Branch Mehrabpur Qadafi Chowk Branch
Property No. B-II-174, 175, 176, Chobara Mehrabpur Branch Khatooni No. 1261 , Qadafi Chowk
Road, Layyah Land Bearing No.12/111-A, Thari Road Masoom Shah Road, Multan
Tel: (92-606) 412975-7 Mehrabpur, Taluka Kandyaro, District Tel: (92-61) 6780853-54
Nowsheroferoz
Liaquatpur Rasheed Abad Branch
Liaquatpur Branch Mian Channu Khatooni No.1101, Shop No.1, 2, 3
Plot No.150, Rest House Road, Mian Channu Branch Anees Plaza, Chowk Rasheedabad,
Liaquatpur 17-B, Ghazi More, G.T. Road, Mian Khanewal Road, Multan
Tel: (92-068) 5693263-264 Channu Tel: (92-61) 6305714-6
Tel: (92-65) 2662001-3
Lodhran Sameejabad Multan Branch
Lodhran Branch Mianwali Khasra No.10/7/1, Khewat No.04, Peeran
Plot No. 493-A, A-1, A-2/5H, Ghosia Mianwali Branch Ghaib Road, Sameejabad Multan.
Chowk, Multan Bahawalpur Road, Property No. D-3-4/A, Ballo Khel Road,
Lodhran Mianwali Shah Rukn-e-Alam Branch
Tel: (92-608) 364797-8 Tel: (92-459) 233305-9 Shop No. 26-27, Block F, Main Market,
T-Chowk, Shah Rukn-e-Alam Colony, Multan
Tel: (92-61) 6784324-5

Sher Shah Road Branch Okara Branch University Road Branch
Property No. 50/A, Opposite Garden MA Jinnah Road, Okara Khattak Plaza, University Road,
Town, Sher Shah Road, Multan Tel: (92-44) 2521935-7 Peshawar
Tel: (92-61) 6536752-5 Tel: (92-91) 5703400-2
Pabbi
University Road Branch Pabbi Branch Warsak Road Branch
Khewat No.856/833, Khatooni No.1309, Khasra No.2080, Main G.T Road, Pabbi Azam Market. Opp. Peshawar Public
Shalimar Colony Chowk, University Tel: (92-923) 528401-403 School & College, Warsak Road,
Road, Multan Peshawar.
Tel :(92-61) 6224974-5 Pakpattan Tel: (92-91) 5201307- 9
Pakpattan Branch
Vehari Chowk Branch College Road, Pakpattan Phalia
Shop Nos. 82,83,84,112, Madni Tel: (92-457) 352711-13 Phalia Branch
Commercial Center, Near Vehari Chowk, Khewat # 174, Khatooni # 436, Khasra #
Multan Panjgoor 106 Helan Road, Phalia
Tel: (92-61) 6241201-3 Panjgoor Branch Tel: (92-0546) 586273-5
Chitkan Bazar, Panjgoor
Vehari Road Branch Pir Mahal
Al Hamd Centre Plot No. 2228/10 Vehari Pasrur Pir Mahal Branch
Road Grain Market Multan Timber Market Pasrur Branch Plot No. P-10-11, Kousar Abad,
Tel: (92-61) 6244153-5 Property No. 369-BI-327/GODOWN , Chak Abadi 779-GB, Qasba Pir Mahal
Timber Market Pasrur, Tehsil Pasrur Tel: (92-46) 3367601-7
Willayatabad Branch District Sialkot
Building No.728, Near Willayatabad Gate Tel: (92-052) 6441934-6 Pishin
# 01, Willayatabad Colony, Vehari Road, Pishin Branch
Multan Pattoki Khasra No.649-653, Block-1, Bund Road
Pattoki Branch Pishin
Muridkay Shop No. 09-11, Abdullah Centre, Tel: (92-826) 421015-17
Muridkay Branch Opposite Ghalla Mandi,
Khewat No. 1061, Khatooni No. 2615, Shahrah-e-Quaid-e-Azam, Pattoki Qalanderabad
G.T Road Muridkay District Sheikhupura Tel: (92-49) 4421025-8 Qalanderabad Branch
Tel: (92-42) 37980131-133 Khata No.206, Khatoni No.290, Khasra
Peshawar No.329/2, Shahrah-e-Resham Road,
Muslim Bagh Charsadda Road Branch Qalanderabad
Muslim Bagh Branch Property No. 190, Opposite Al Hajj Tel: (0992) 370600-02
Shop No 40 - 41, School Road, Muslim Market, Mirch Mandi, Charsadda Road,
Bagh Peshawar Qilla Saifullah
Tel: (92-823) 669592-3 Tel: (92-91) 5270543-5 Qilla Saifullah Branch
Khasra No.27, Intiqal No.59, Jahangir
Muzaffarabad Chowk Yadgar Branch Market Quetta Road, Qilla Saifullah
Madina Market Muzaffarabad Branch Mohmand Plaza, Naz Cinema Road, Tel: (92-0823) 610206-207,
Mohallah Madina Market, Peshawar City, Peshawar 0823-610234-235
Muzaffarabad, AJ&K Tel: (92-91) 9213950-2
Tel: (92-5822) 920457-9, 920458-60 Quaidabad
Dalazak Road Branch Quaidabad Branch
Muzaffarabad Branch Khata No 46/57, Khasra No 424/398/191, Khewat No. 1054, Khatooni No.1433,
Secretariat Road, Sathra Muzaffarabad, Malik Plaza, Opposite Muslim College of Khasra No. 13/2, 14/2 Main Sargodha
Azad Jammu & Kashmir Commerce, Iqbal Colony, Main Dalazak Mianwali Road, Quaidabad
Tel: (92-5822) 920458-60 Road, Peshawar
Tel: (92-91) 2245901-3 Quetta
Muzaffargarh Alamdar Road Branch
Muzaffargarh Branch G.T. Road Branch Khasra # 11690/5518, Alamdar Road,
Property No. 470, Block No. IV, Hakeem Taxation # 3845,3846, Main G.T Road Quetta
Plaza, Multan Road, Muzaffargarh Kirashan Pura, Mouza, Tukrah # 1, Tel: (92-81) 2662502-503
Tel: (92-662) 428708-10 Peshawar
Tel: (92-91) 2612020-3 Alamo Chowk Branch
Nankana Sahib Shop No.17-19, Al-Emirate City Plaza,
Nankana Sahib Branch Gulbahar Branch Alamo Chowk, Air Port Road, Quetta
P-66, Guru Bazar Ghalla mandi Plot No. 45, New Nanak Pura Gulbahar, Tel: (92-81) 2820158-9
Nankana Sahib Peshawar
Tel: (92-56) 2877023-24 Tel: (92-91) 2603091-3 Choharmal Road Branch
Shop No: 1-5, Agha Super Complex
Narowal Hayatabad Township Branch Choharmal Road Quetta
Kutchary Road Narowal Branch Plot No. 08, Bilal Market, Sector D-1, Pabx: (92-81) 2845593-94
Building No.B-IV/ 4B/ 7, Kutchary Road Phase 1, Hayatabad, Peshawar
Narowal Tel: (92-91) 5816163-5 Double Road Branch
Tel: (92-054) 2411703-6 Khasra No.2, Qithas, Zarghoon Road
Karkhano Market Branch Quetta
Naushahro Feroz Royal Shopping Plaza, Hayatabad, Tel: (92-81) 2440885-86
Naushahro Feroz Branch Peshawar
Plot No.1 , Survey No.331, National Tel: (92-91) 5893471-4 Hazar Ganji Branch
Highway Naushahro Feroz Plot No. 715-716 A, Truck Stand, Hazar
Khyber Bazar Branch Ganji, Quetta
Nawabshah Property No.417/D, Rehman Baba Tel: (92-81) 2472143, 081-2472167
Nawabshah Branch Colony, Mohallah Akara Mufti Abdul Latif
Plot No. 573, Ground Floor, Ward-B, Khan, Outside Bajori Gate, Khyber Bazar Kawari Road Branch
Katcheri Road, Nawabshah Peshawar Kawari Road, Near Children Hospital,
Tel: (92-244) 330902-6 Tel: (92-91) 2564019-20 Quetta
Sanghar Road Branch Kohat Road Branch Liaquat Bazar Branch
Plot No A-17 Survey No. 166/1,166/2, Khasra No.1493 & 1953, Mauza Achar Shop No. 1,2 Alazmat Plaza, Masjid Rd.
166/3, Ali Raza Shah Colony, Deh 86, Hadbast No.254, Opposite Small London Street, Quetta
Nasrat, Sanghar Road Nawabshah Industrial Estate, Kohat Tel: (92-81) 2840195-6
Tel: (92-244) 4361924-25 Road Peshawar
Tel: (92-91) 2320676-576 Mannan Chowk Branch
Nowshera Mannan Chowk, Jinnah Road, Quetta
Nowshera Branch Ring Road Peshawar Branch Tel: (92-81) 2829470-2
Ground Floor, Taj Building Main G.T Khasra No.4628/3253, Khata No.
Road Nowshera Cantt-Pakistan 186/549, Near Pashtakhara Chowk, Ring Mission Road Branch
Tel: (92-923) 613174-5 Road, Peshawar Shop No 1-30/51 & 1-30/52, Mission
Tel: (92-91) 5230581-3 Road, Opposite Palace Bakery, Quetta
Okara Tel: (92-81) 2832851-5
Okara II Branch Saddar Road Branch
Khatooni No. 448, Depalpur Chowk, G.T 6 Saddar Road, Peshawar Cantt. Sirki Road Branch
Road, Okara Peshawar Shop No. 1 & 2, Kasi Complex,
Tel: (92-44) 2701106-07 Tel: (92-91) 9213471-5 Sirki Road, Quetta
Tel: (92-81) 2454222-3

Quetta Cantt Branch Bohar Bazar Branch Liaquat Road Rawalpindi Branch
Jinnah Welfare Shopping Complex, D-327, Hakim Muhammad Amjal Khan Plot No.B-541-542, Liaquat Road
Jinnah Road Quetta Cantt Road, Bohar Bazar, Rawalpindi Rawalpindi
Tel: (92-81) 2820889 Tel: (92-51) 5778875, 5778834 Tel: (92-51) 5559121-23
Suraj Ganj Bazar Branch Committee Chowk Branch
Khasra No.292, NRB Plaza, Thana Road, Plot No.1, Regent Hotel, Sherpao Muslim Town Branch
Suraj Ganj Bazar, Quetta Colony, Committee Chowk , Chaklala B-IV, 628-629, Chirah Road, Muslim
Tel: (92-81) 2831021, 0812-2831022 Road, Rawalpindi Town, Rawalpindi
Tel: (92-51) 4476013
Rahim Yar Khan Chah Sultan Chowk Branch
Factory Area Branch Plot No. NE-4286 - NE-4287 Chah Sultan Peshawar Road Branch
Plot No.21, 22, Shahbaz Pur Road, Chowk, Rawalpindi Khasra No. 2573 Peshawar Road
Factory Area Rahim Yar khan Tel: (92-51) 5702491-2 Rawalpindi.
Tel: (92-68) 5888603-04 Tel: (92-51) 5167368-70
Chaklala Scheme III Branch
New Grain Market, Rahim Yar Khan Plot No. 38, Bazar Area, Saidpur Road Branch
Branch Chaklala Housing Scheme No. III, Plot No. CA-294/A, Chistiabad,
Khata No.16/16, Khatooni No.135/137 Rawalpindi Cantt Shabbir Plaza, Near Siddiqui Chowk,
New Grain Market, By Pass Road, Rahim Tel: (92-51) 5766435-8 Saidpur Road Rawalpindi
Yar Khan Tel: (92-51) 4416215-17
Tel: (92-68) 5708103-04 Chandni Chowk Branch
Umer Farooq Plaza, Block C, Satellite Shamsabad Branch
Rahim Yar Khan Branch Town, Chandni Chowk, Murree Road, Khewat # 79,80,89,107/1, Khatooni #
23 - Model Town, Rahim Yar Khan Rawalpindi 97,100,124,132/1, Khasra #
Tel: (92-68) 5887603-4 Tel: (92-51) 4851046-9 101,102,103,107,106,104,110
Shamsabad Murree Road Rawalpindi
Raiwind Commercial Market Branch Tel: (92-51) 4854471-4
Raiwind Branch Plot No. 847-B, Commercial Market,
Khasra No. 5024 & 5031, Main Bazar, Satellite Town Rawalpindi Tench Bhatta Branch
Opposite Railway Phattak, Raiwind Tel: (92-51) 4944203-04 Property No. CB-185/185-1-11 Tench
Tel: (92-42) 35394620-2 Bhatta Rawalpindi Cantt
DHA Phase I Branch Tel: (92-51) 5562716-18
Rajanpur DHA Avenue Mall, Main Boulevard DHA
Rajanpur Branch Phase-I, Rawalpindi Tulsa Road Lalazar Branch
Khata No.1270, Khasra No.617/1, Jinnah Tel: (92-51) 5788316-17 Property No.9-A Main Tulsa Road
Road, Rajanpur Lalazar Rawalpindi Cantt
Tel: (92-604) 688071-72 Fateh Jhang Road Branch Tel: (92-51) 5178189-191
Faisal Town Fateh Jhang Road Rawalpindi
Rashidabad Tel: (92-51) 4342707-8 Westridge Branch
Rashidabad Branch Al Farooq Plaza Khasra No.1704-1705,
Survey No. 510-511, Deh Daro, Main G.T Road Morgah Branch Khewat No.601,606, Khatooni No.
Hyderabad Mirpurkhas Road, Rashidabad Khasra No. 1663, Riaz Plaza, G.T Road 863-868, Moza Chur Harpal Allabad
Tel: (92-22) 2732153-55 Morgah More, Rawalpindi. Westridge-III Rawalpindi
Tel: (92-51) 5450010-11 Tel: (92-51) 5490250-252
Rawat
Rawat Branch G.T Road Tarnol Branch Sadiqabad
Khokhar Mall Plaza, Main G.T Road, Khan Malook, Wazir Plaza, G.T. Road, FFC Chowk Branch
Rawat, Islamabad Turnol, Rawalpindi Rehmat Center, FFC Chowk, K.L.P Road,
Tel: (92-51) 4612346-47 Tel: (92-51) 2226406 Sadiqabad
Tel: (92-68) 5786209-10
Renala Khurd Gulrez Rawalpindi Branch
Renala Khurd Branch Plot No. 471 Asghar Mall Plaza Gulrez Sadiqabad Branch
Plot No. 26-27, 58-60 Khewat No.3, Housing Scheme Phase II, Rawalpindi. 31-D, Main Bazar, Sadiqabad
Khatooni No.4, Khasra No.34/26/2/26, Tel: (92-51) 5595895 - 897 Tel: (92-68) 5701207-8
Welcome Road, Renala Khurd
Tel: (92-044) 2622336-37 Gulzar-e-Quaid Branch Sahiwal
Mangral Plaza, Mauza Gangal, Main Farid Town Branch
Rawalakot Airport Road, Gulzar-e-Quaid, Rawalpindi Khewat No. 7126, Khatooni No. 7198,
Rawalakot Branch Tel: (92-51) 5191802-3 Plot No.357, Block-H, Farid Town
Plot No. D-269, D-113, Housing Scheme, Sahiwal
Rawalpindi Road, Rawalakot Azad Hamilton Road Branch
Jammu Kashmir Shop No. AA-710 - 713, Hamilton Road, G.T. Road Sahiwal Branch
Tel: (92-5824) 442240-41 Raja Bazar, Rawalpindi Property No. IV-343/334, 343/335, Ghalla
Tel: (92-51) 5777192 - 194 Mandi G.T Road, Sahiwal
Rawalpindi Tel: (92-40) 4224911-2
Adyala Road Branch Jinnah Road Branch
Ground Floor, Daulat Plaza, Property No. 167, Commercial Area, High Street Branch
Near Dhaman Morh, Main Adyala Road, Mohan Pura, Jinnah Road - City Saddar Khewat # 146, Khatooni # 146, Mission
Rawalpindi Road, Rawalpindi City Chowk, High Street Sahiwal
Tel: (92-51) 5574880-2 Tel: (92-51) 5778511-2 Tel: (92-40) 4222661-62
Afshan Colony Branch Kallar Syedan Branch Pakpattan Road Branch
Khasra No.294, Afshan Colony, Range Khewat No.105, Khatooni No.211, Choa Khewat No.115, Khatoni No.386, 97/9L,
Road Rawalpindi Cantt Road, Mouza & Tehsil Kallar Syedan, Pakpattan Road, Besides Engro Foods,
Tel: (92-51) 5142109-11 District Rawalpindi Sahiwal
Tel: (92-51) 3572261-263
Bahria Town Branch Sahiwal Branch
Shop No 10, 11 & 12, Bahria Heights - I, Kalma Chowk Branch 276-B-I, Alpha Tower, High Street, Sahiwal
Phase - I, Bahria Town, Rawalpindi Ground Floor, Rajco Plaza, Kalma Tel: (92-40) 4465009, 4466592
Tel: (92-51) 5730171-3 Chowk,
Kamal Abad, Rawalpindi Sakrand
Bahria Town Phase-7 Branch Tel: (92-51) 5684491-2 Sakrand Branch
Plot No.36, Sikandar Arcade, Service Deh.18, Taluka City Sakrand, District,
Road Spring North, Bahria Town Phase-7 Khana Pul Branch Nawabshah
Rawalpindi Khewat No.1674, Khatooni No.2185, Tel: (92-244) 322054-57
Tel: (92-51) 5400373 -75 Khasra No.833, Mouza Khana Dak,
Tehsil & District Rawalpindi Sambrial
Bank Road Branch Tel: (92-51) 4473781-84 Sambrial Branch
No. 47/62, Bank Road Saddar, Rawalpindi Property No. B-II-382, street No 4,
Tel: (92-51) 9273404-6 Khayaban-e-Sir Syed Branch Wazirabad Road, Tehsil Sambrial District
Plot # 164-A/1, Sector-I, Area Sialkot
Banni Chowk Branch Development Scheme Khayaban-e-Sir Tel: (92-052) 6524061-3
Shop Nos. O-383/A, O-383/A-2, O-383/A-3, Syed Rawalpindi
Kohati Bazar Banni Chowk Rawalpindi Tel: (92-51) 4832926-27
Tel: (92-51) 5556301-2

Samundri Sialkot Talagang
Samundri Branch Aziz Shaheed Road Branch Talagang Branch
Plot No 1, Commercial Area Development Qayyum Trade Center, Aziz Shaheed Khasra No.529, Khewat No.909 Traffic
Scheme, Gojra Road, Samundri Road, Sialkot Cantt Chowk, Old Rawalpindi Road Talagang
Tel: (92-041) 3420181-85 Tel: (92-52) 111 852 852 Tel: (0543) 410460-61
Sanghar Circular Road Sialkot Tando Adam
Sanghar Branch Property No. XXlll - 4S- 17 / RH Circular Tando Adam Branch
Property No.124 / A-1, Housing Society Road Sialkot Muhammad Chowk, Tando Adam,
Town, Sanghar Tel: (92-52) 4586601-03 District Sanghar
Tel: (92-235) 543662-3 Tel: (92-235) 576565-66
Gohad Pur Branch
Sanawan Building No. BI - 25 S-304, Airport Road Tando Allahyar
Sanawan Branch Gohad Pur Sialkot Tando Allahyar Branch
G.T Road, Sanawan, District Muzaffargarh Tel: (92-52) 4296054-6 Survey No. 1610/07, Opposite General
Bus Stand, Tando Allahyar
Sara-e-Alamgir Haji Pura Road Sialkot Branch Tel: (92-22) 3892021, 3891242
Sara-e-Alamgir Branch Khatooni No.322-324, Khewat No.106,
Khewat No.92-93, Khatooni No.106-107 , Haji Pura Road Sialkot Tando Mohammad Khan
Near Mirpur Bus Stand G.T Road, Tel: (92-52) 3574763-65 Tando Mohammad Khan Branch
Sara-e-Alamgir Shop # 25,26 & 27, Deh Pataar main
Tel: (92-544) 286103-5 Kashmir Road Branch Hyderabad-Badin Road Tando
Address: Pakka Garha, Kashmir Road Mohammad Khan
Sargodha Sialkot Tel: (92-22) 3341584-5
47 Adda Branch Tel: (92-52)-4295301-02
Khewat No.167, Khatooni No.195, Main Tarlai
Canal View Chowk 47 Adda Sargodha Kutchery Road Branch Tarlai Branch
Tel: (92-48) 3212648-9 Kutchery Road, Sialkot Khewat No.88, Khatooni No.168, Khasra
Tel: (92-52) 4263461 No.411/2, Near Tramdi Chowk, Lehtrar
Gole Chowk Branch Road Tarlai Kalan,
Plot No.123-25, Block No. 10, Gole Pasrur Road Branch Tehsil & District Islamabad.
Chowk, Sargodha Plot No.BXIV-II-S-I/B/RH, Pul Aik, Pasrur Tel: (92-51) 2243700 - 701
Tel: (92-48) 3700943-45 Road Sialkot
Tel: (92-52) 3521701-04 Taunsa
Muslim Bazar Branch Taunsa Branch
12-Block Chowk, Muslim Bazar, Sargodha Shahabpura Road Branch Property ETO No.347, 348, 349, 350-III,
Tel: (92 48) 3741609-13 Plot No 31-A, Shahabpura Road, Adjacent Wahuwa Road, Taunsa
to Grays of Cambridge Ltd. Sialkot Tel: (92-64) 2601301-03, 2601201-02
New Satellite Town Branch Tel: (92-52) 3242941-43
Property No.01, Khasra No.14380, Taxila
Khatooni No.371/392, Block Z, New Shahkot Taxila Branch
Satellite Town Sargodha Shahkot Branch Khewat 17, Khatooni 29, Khasra 403,
Property No. 518, Jaranwala Bazar, Nabi Plaza, Chowk Sara-e-Kala, Taxila
Queens Chowk, Sargodha Cantt Branch Corner Circular Road, Sultan Baho Tel: (92-51) 4544119, 4547116
Property No 193/1, 194/2, Chowk, Shahkot
Mansoorabad, Queens Chowk Timergara
Cantonment Area Sargodha Shujabad Timergara Branch
Tel: (92-48) 3722904-6 Shujabad Branch Al-Imran Hotel G.T Road,
Property No.323-A, Ward No.06, Timergara Bazar, Timergara
Sargodha Branch Jalalpur Road, Shujabad Tel: (92-945) 825271-3
91 Civil Lines, University Road, Sargodha Tel: (92-61) 4425574-76
Tel: (92-48) 3741608-10 Toba Tek Singh
Shikarpur Toba Tek Singh Branch
Satellite Town Branch Shikarpur Branch P-103, Farooq Road, Toba Tek Singh
Plot No. 34 Block-C, Main Chowk, Plot Survey No.5/142, 5/143, 5/144 & 5/158 Tel: (92-46) 2513765-6
Satellite Town, Sargodha Circular Road Staurt Gunj, Shikarpur
Tel: (92-48) 3223731-5 Tel: (0726) 540341-43 Turbat
Main Road Turbat Branch
Shahdadpur Sukkur Khasra No. 32, Khewat No. 32, Main
Shahdadpur Branch Military Road Branch Road Branch Turbat
Property No. 293/1, Ward-C, Station Plot No.E-717, Military Road Sukkur.
Road, Shahdadpur Tel: (92-71) 5630631- 33 UmerKot
Tel: (92-235) 842952-3 Umerkot Branch
March Bazar Branch Survey No.699,115, Shops No.15-17,
Shahdadkot C-45, Station Road, Sukkur Gulshan-e-Akber Housing Project Phase
Shahdadkot Branch Tel: (92-71) 5620771-3 II, Mirpurkhas Road, Umerkot
Survey No.1357/1, Ward-B Kotoo Motoo Tel: (92-238) 570409-411
Chowk Shahdadkot Sukkur Branch
Tel: (92-074) 4012895-7 3-45, Ward-C, Station Road, Sukkur Vehari
Tel: (92-71) 5617192-4 Karkhana Bazar Vehari Road Branch
Shakargarh Plot No. 23, Block-A,
Shakargarh Branch Swabi Karkhana Bazar, Vehari
B-IV-942/RH-SH, Railway Road Swabi Branch Tel: (92-67) 3366031-3
Shakargarh Amjad Mughalbaz Khan Plaza,
Tel: (92-54) 2452180-2 Near TMA Office Mardan Road, Swabi Wah Cantt
Tel: (92-938) 222704-6 Wah Cantt Branch
Shorkot Ground Floor, Mall View Plaza, Mall
Shorkot Branch Swari Road, Wah Cantt
Sabir Chowk, Jhang Road, Shorkot Swari Branch Tel: (92-51) 4530584-6
District Jhang Khata No.579, Khatoni No.715, Khasra
No.2964, Moza Swari, Tehsil Gagra, Yazman
Skardu District Buner Yazman Branch
Skardu Branch Tel: (92-93) 9555204-5 Khatooni No.166-177 Bahawalpur Road,
Khewat No.62/189/63, Main Bazar Skardu Yazman
Tel: (05-815) 456457 to 459 Swat
Green Chowk Branch Wazirabad
Sheikhupura Abasin Tower, Green Chowk, Wazirabad Branch
Sheikhupura Branch Madyan Road, Mingora Swat Plot No. I-14S-37, Sialkot Road,
Civic Center, Sargodha Road, Tel: (92-946) 711581-83 Wazirabad Tel: (92-55) 6600313-4
Sheikhupura
Tel: (92-56) 3813360-2 Mingora Branch Zhob
Makanbagh Chowk, Mingora Swat Zhob Branch
Sheikhupura II Branch Tel: (92-946) 714316-8 Patta No. I-46, Market Road, Zhob
Khata No 465, Khatoni No.903, Tel: (92-822) 413803
Property No.BIX-7-5, Chowk Pir Bahar Shah,
Batti Chowk, Lahore Road Sheikhupura

Glossary
AAOIFI Al-Musha‘
Accounting and Auditing Organization for Islamic Financial Mixing up of the proprietary rights of more than one person in a
Institutions. The Accounting and Auditing Organization for Islamic thing, such as in joint ownership where each co-owner has a right
Financial Institutions (AAOIFI) is an Islamic international until the entire property is distributed.
autonomous non-for-profit corporate body that prepares
accounting, auditing, governance, ethics and Shariah standards Al-Qard Al-Hasan
for Islamic financial institutions and the industry. A loan with the stipulation to return the principal sum in the future
without any increase.
Acceptances
Promise to pay created when the drawee of a time draft stamps or Al-Qimar
writes the words “accepted” above his signature and a An agreement in which ownership of a property is contingent
designated payment date. upon the happening of an uncertain event. By implication it
applies to those commutative agreements in which gain of one
Accrued Profit party is linked with the loss of other party.
Profit earned but not received from the customer.
Al-Qiyas
Acquirer Derivation of the law on the analogy of another law if the basis
Acquirers are banks and financial institutions that collaborate with (‘illah) of the two is the same. It is one of the primary sources of
businesses to accept credit/debit card payments. Islamic law including Islamic economics.
Additional Unit Purchase
Al-Rahn
Purchase of units in excess of initially agreed schedule in
To pledge or lodge a real or corporeal property of material value,
Diminishing Musharakah to reduce bank's share in the asset.
in accordance with the law, as security for a debt or financial
Advance Booking obligation, so as to make it possible for the creditor to regain the
Booking of vehicle with the manufacturer through advance debt or some portion of the goods or property.
payment.
Al-Tabarru‘
Advance Rental It means the right of complete and unfettered disposition over joint
Payment of rent after lease agreement before utilization of property. This right has not been conceded by the jurists to any
usufruct. partner. However, one has the right of tabarru‘ with personal
property.
Agreement Stamping Charges
Charges paid by the customer for stamping of financing Amortization Schedule
agreement. Information of Equal Monthly Installments (EMI) with breakup of
Al-‘Aqd unit price & rental along with balance outstanding.
Legal contract implying an enforceable act involving a bilateral Annual Fee / Renewal Fee
declaration, namely, the offer (’Ejab) and the acceptance (qabul). An annual fee typically charged to customers with debt cards.
Al-Bai Applicable rate
A contract of sale. Tech: Sale of definite goods or property with the Profit rate applied on the facility.
free consent of parties for a definite price. It involves offer (Ejab) and
acceptance (qabul). It has many types. Application form
A form to be filled in and signed as per the Bank’s requirements to
Al-Bai‘ Al-Batil
avail Banking facilities. Requirement of details to be filled in will
An agreement of sale which is unlawful in respect of its substance
vary for each facility. Applications may also require certain
and description.
specified documents also to be attached.
Al-Bai‘ Al-Mu’ajjal
A financing technique adopted by Islamic banks. It is a contract in Appraisal Agency
which the seller allows the buyer to pay the price of a commodity Agency used for assessing market value of an Asset.
at a future date in lump sum or in instalments. ATM
Al-Gharar An automated teller machine or any card-operated machine or
Gharar is a state of uncertainty that exists when the process of device whether belonging to the Bank or other participating banks
concluding a transaction involves an unknown aspect. or financial institutions or concerns or to the Visa Card or
MasterCard global ATM Network, or the affiliated networks
Al-’Ijma‘ thereof, as the case may be, which accepts the Card.
Consensus of the Islamic jurists (mujtahidwn) on a certain Shariah
issue after the demise of the Holy Prophet (P.B.U.H.) Bai‘ Al-’Amanah
A sale whereby both parties express trust in each other.
Al-’Ijtihad Examples: bai‘ al-wafa, bai‘ al-talji’ah, bai‘ al-wadWyah,
Endeavour of an Islamic jurist to derive or formulate a rule of law Murabaha, etc.
pertaining due to a matter not explicitly mentioned in the Shariah
sources on the basis of evidence found in the Shariah sources. Bai‘ Al-Dain
Sale of debt.
Al-Kafalah
A contract of surety in which a person adds to his responsibility or Bai‘ Al-‘Inah
liability on behalf of another person in respect of a demand for a It refers to the process of purchasing the commodity to a deferred
loan or debt. price, and selling it for a lower spot price to the same party from
Al-Mudarabah Al-Muqayyadah whom the commodity was purchased.
A contract of Mudarabah in which certain conditions like place, Bai‘ Al-’Istijrar
season, commodities, credit and techniques of trade are A form of sale whereby the buyer keeps on taking the goods from
stipulated by the provider of the capital (rabb al-mal). the seller as and when needed with or without settling the price
Al-Mudarabah Al-Mutlaqah and then settles the account later on.
A contact of Mudarabah that does not bind the entrepreneur Bai‘ Al-Kali Bil Kali
about the place, time, season, commodities, credit or techniques A sale in which both the delivery of the object of the sale and the
of trade. These matters are left to the option of the entrepreneur. payment of its price are delayed.
The Mudarabah contract defines merely the profit-sharing ratio.

Bai‘ Al-Khiyar Capital Contributions
A sale contract that provides an option to conclude or rescind the Relating to an Islamic Fund, they are additional funds collected
deal. from investors in the fund to finance needs that may arise in the
future as the fund manager considers appropriate. New
Bai‘ Al-Muqayadah shares/units are not issued in exchange of these capital
Selling a commodity for another commodity/Barter sale. contributions.
Bai‘ Al-Murabahah Capital Transactions
Sale of goods with an agreed price with profit on the cost. With reference to an Islamic Fund, they include the sale of
Bai‘ Al-Musawamah units/shares, and the number of units/shares issued on
Sale of goods at a price on which the buyer and seller agree after reinvestment of distributions/dividends less the value of
haggling without mentioning the cost to the seller. units/shares returned.
Bai Al-Salam Card

This term refers to advance payment for specifically defined The applicable Visa Card, MasterCard and / or any other card
goods which are to be delivered later. including but not limited to co-branded cards, e-card, debit card
the second card as issued by the Bank, from time to time, to the
Bai‘ Al-Tawliyah Card member and shall include Supplementary and subsequently
A contract of sale in which the seller agrees to sell a product at his issued, renewal or replacement Cards.
cost.
Card Account
Bai‘ Al-Wad‘Iyah Visa/Master Card account or any account pertaining to the
A sales contract in which a seller informs the buyer his actual cost Card(s) issued by the Bank from time to time, as the case may be,
and then gives a further discount on it. opened by the Bank for the purpose of entering debits / charges
incurred by or for the account of, and credits received by or for
Balloon Payment the Card member and Supplementary Card member.
Payment by customer in addition/additional/excess to the
installment amount to reduce the number of outstanding units. Card Issuer
A bank, financial institution, credit union, or agency that issues a
Bank Investment Ratio (BIR) card to public or its members is called a card issuer.
Ratio of bank's investment in an asset against the value of that
asset. Card member
A person to whom the Card is issued by the Bank and shall also
Banker's lien include every Supplementary Card member.
Bank's charge on the asset.
Card Replacement Fee
Basel II Fees to be charged by the bank for replacement of lost/stolen or
Basel II is the second of the Basel Committee on Bank damage card.
Supervision's recommendations, and unlike the first accord,
Basel I, where focus was mainly on credit risk, the purpose of Card Transaction
Basel II was to create standards and regulations on how much Any payment made or any amount to be debited from the Card
capital financial institutions must put aside. Banks need to put Account or any amount charged by the Bank or any Merchant for
aside capital to reduce the risks associated with their investing any goods, services and other benefits by or through the use of
and lending practices. the Card.
Base rate Cash Equivalents
Benchmark rate for driving the pricing of product/service. Short–term highly liquid investments that are readily convertible to
known amounts of cash and which are subject to an insignificant
Billing cycle risk of changes in value.
Date of a month when bill/statement is generated.
Cash Reserve Ratio (CRR)
Bills for Collection Cash Reserve Ratio is the amount of funds that the banks have to
A bill of exchange drawn by the exporter usually at a term, on an keep with the State Bank of Pakistan.
importer overseas and brought by the exporter to this bank with a
request to collect the proceeds. CAGR
An abbreviation for Compound Annual Growth Rate.
BOQ
Bill of quantity - Break up of amount in construction cases. CDs (Central Deposits)
One of the proposed monetary policy tools for the Islamic
Breakup Value per share economy. The central bank may open investment accounts in
The total worth (equity) of the business per share, calculated as member banks in which it deposits whatever money it creates and
shareholders’ equity or Net Assets excluding the impact of from which it withdraws whatever money it retires. Member banks
revaluation on fixed assets, divided by the total number of share may invest these deposits in the real sector in accordance with
outstanding at year end. the investment policy of each bank. Profits earned on such
BRP (Bankers Ratio of Profit-Sharing) deposits may be used to cover the cost of central bank
Percentage share of profit due to financier in the profit of an operations.
enterprise financed on the basis of Mudarabah or Musharakah. Certificate of Musharakah
Business Person An Islamic financial instrument approved by the Corporate Law
Individual having his own business. Authority of Pakistan in April 1995.
Buy-Back Charges
A non-permissible transaction where Bank purchases goods, The amount payable by the customer to the Bank under the Terms
equipment or property form the client with the agreement that the and Conditions, including but not limited to any transactions,
client would buy it back from the bank at a higher price, to be paid Annual Membership , Services Fee, Charity and other fees /
later by the client. charges.
Capital Adequacy Ratio (CAR) Charity

The relationship between capital and risk weighted assets as Means monetarily helping those in need. In IBIs in order to
defined in the framework developed by the State Bank of mitigate the risk of delayed payment customer is asked to
Pakistan. undertake, that if he/she fails to pay dues on due date, he/she will
pay certain amount to a charity, which will be administered
through the Islamic Bank. Such amount is not the income of IB.

Clean Limit Credit Murabahah
Financing Limit which has been granted by the bank without any A sale agreement on the basis of determined profit over the
collateral/liquid/non-liquid securities. purchase price of the seller with the condition that the buyer will
pay the sale price in future.
Clear Title
When the property in question is free from any doubt is not Credit Rating / Score
disputed and is not having any encumbrances and it is said to A credit rating is an evaluation of the credit risk of a prospective
have a clear title. customer, predicting his ability to pay the financed amount, and
an implicit forecast of the likelihood of the customer defaulting.
Closed-End Funds
Mutual funds with a fixed number of shares (or units). Unlike Credit Risk
open-end funds, new shares/units in a closed-end fund are not Credit risk involves the risk that a counter-party to a contractual
created by managers to meet demand from investors. Instead, obligation, be it Murabahah, Mudarabah, ’Ijarah, qard hasan,
the shares can only be purchased (and sold) in the secondary ’Ijarah wa ’iqtina’ or shirkah, would default on the promised date of
market. payment.
Closing Balance Cross sell
The amount payable (or available) as of last working day of the Selling of product to already existing customer.
certain period/month.
Current
Co-Applicant Customer making all the payments on time.
A co-applicant is a person who signs a finance contract with the
primary applicant, pledging to be responsible for paying off Customer
financed amount in the event the applicant is unable to pay. A person who is availing any facility or products of a bank.
Collateral Dealership
An asset pledged to a financer/creditor to guarantee Vehicle is provided through dealership.
payment/repayment. Collateral could include savings, Sukuks, Debt Ratio/Debt Burden
takaful policies, jewelry, property or other items that are pledged A ratio of amount of money customer owe to banks or credit
to pay off financing/rentals/balance outstanding if payments are issuers against total monthly income of a customer. It reflects the
not made according to the contract. percentage of income that goes to paying customer debts every
Collector month. Islamic banks calculate Debt Ratio to assess the amount
Bank employee responsible for collection/recovery. of financing that can be provided.
Commingled Mudarabah Default/ Delinquency

Relating to Islamic banks, a form of Mudarabah in which a bank When a customer fails to make any payment(s) due towards the
accepts funds for investment and contributes its own funds as bank as per the terms and conditions agreed or otherwise is
well. The profit and loss are shared in agreed proportions and the termed as default. Furthermore, a breach of contract/terms and
bank also receives a share of the profit from out of the share of conditions may also be categorized as an event of default.
investors for its role as mudarib. Account is classified as delinquent when rentals are not paid
according to the contractually agreed upon terms or when due.
Commitment to Extend Credit
Credit facilities approved but not yet utilized by the client as at the Deferred Taxation
Balance Sheet date. Sum set aside for tax in the Financial Statements that will become
payable in a financial year other than the current financial year.
Commodity Mudarabah
A contract of Mudarabah wherein the owner of capital provides Delivery Acceptance Form
capital in the form of stock-in-trade (‘urwd) and not cash. In the context of auto finance, this is a mandatory document which
the customer signs acknowledging acceptance and possession
Constant Musharakah of vehicle from the dealer.
It is a Musharakah in which the proportionate shares of partners in
the equity remain unchanged within the currency of the Desired Financing Amount
agreement. Amount required by the customer.
Contingencies Desired Financing Tenure

A condition or situation existing at Balance Sheet date where the Tenure required by the customer.
outcome will be confirmed only by occurrence of one or more Diminishing Musharakah
future events. Bank and customer participate in joint ownership of a property.
Contract Price The share of the bank is divided into number of units and the units
Total amount payable by the Customer to the Bank for the Asset owned by the Bank are rented to the customer. Customer
pursuant to the Musawamah / Mudarabah Transaction. purchases these units from bank at periodic intervals, thereby
increasing his/her share in the undivided property until all the
Corporate Governance units are purchased by the customer.
The process by which corporate entities are governed. It is
concerned with the way in which power is exercised over the Direct Debit / Auto Debit Facility
management and direction of an entity, the supervision of A facility offered by the bank to customer against which monthly
executive actions and accountability to owners and others. full payment or minimum payment will be debited from his/her
account on the due date.
Cost/Income Ratio
Operating expenses as a percentage of total income. Disbursement
Payment made in the name of the customer.
Credit History
A financial profile of any person based on how he pays his bills, Discrepancy
clears his debt and the amount a person owes to various banks Incomplete or missing documents, or alternatively incomplete,
and other financial intuitions. illegible or contradictory information in the customer's financing
application or documentation provided by customer.
Credit Limit
It is the maximum amount of money one can draw on his account Dishonored/Returned Cheque
based on prior sanction or approval from the bank. In other words, A Cheque which is returned by the payer's Bank due any number
drawing limit fixed by a bank for a customer depending on his of possible reasons including but not limited "insufficient funds,
credit history, paying capacity and relationship with bank. amounts' mismatch, illegible signature, overwriting, date-barring
etc."

Disputed transaction FED
A cardholder posted transaction which is not accepted by him/her Federal Excise Duty.
and requires clarification.
Financing Agreement
Dividend Document used for agreement between the customer and the
A sum of money paid by a company to its shareholders out of it bank.
profits (or reserves).
Financial Losses and Provisions
Dividend Payout Ratio Amount set aside against identified and possible losses on loans,
Dividends (cash dividend plus bonus shares) paid per share as a advances and other credit facilities as a result of their becoming
fraction of earnings per share (EPS). partly or wholly un-collectible.
Dividend Yield Ratio Fiscal Year
Dividend per share divided by the market value of share. A year as reckoned for taxing or accounting purposes.
DPD Fixed Rate
Number of days past the due date after the customer's payment Facilities where the profit rate defined at the time of financing is
became due as per the contractually agreed upon terms and fixed for the tenure of the facility or until facility is closed.
conditions.
Fixed Term
Due Date /Payment Due Date /Installment due date This applies to products and services, which have a set lifetime.
Date specified in the statement of account for monthly payments/
schedule for the payment of the Current Balance or Installment to Floating Rate
be made to the Bank for the facility availed by the customer. Profit rate renewable after certain defined period of time. The
profit rate is linked with KIBOR plus a fixed percentage of profit
E-Alerts margins.
Electronic Alerts to be sent to customer via email / SMS.
Forced Sale Value (FSV)
E-Banking / Internet Banking Forced Sale Value means the value which fully reflects the
Banking transactions which can be conducted on internet after possibility of price fluctuations and can currently be obtained by
accessing Bank's application with unique password. selling the mortgaged/pledged assets in a forced/distressed sale
conditions.
E-CIB /Credit Bureau
Electronic Credit Information Bureau-eCIB has been established FX Conversion Charges
by the State Bank of Pakistan which requires all banks and Foreign Currency Transactions charges to be borne by customer
financial institutions to report all financings and advances, to the to convert into Pakistani Rupees.
State Bank.
GCAS
Early Settlement Global Customer Assistance Service.
Payment of entire financed amount before the agreed upon
maturity of financing as per payment schedule. General Takaful
A form of Islamic insurance to cover losses of fire, theft or natural
Early Termination Price calamities. The scheme or concept follows the principles of
If the customer wishes to terminate the Ijarah/Diminishing mutual insurance.
Musharakah Agreement before the agreed period, the customer
has an option to buy the asset on the pre-agreed purchase price. Government Securities
Government Securities shall include such types of Pak. Rupee
Earnings per Share obligations of the Federal Government or a Provincial Government
Profit after taxation divided by the weighted average number of or of a Corporation wholly owned or controlled, directly or indirectly,
ordinary shares in issue. by the Federal Government or a Provincial Government and
guaranteed by the Federal Government as the Federal
Effective Tax Rate Government may, by notification in the Official Gazette, declare,
Provision for taxation excluding deferred tax divided by the profit to the extent determined from time to time, to be Government
before taxation. Securities.
EMI Gross Dividends
Equal Monthly Installments. The portion of profits distributed to the shareholders including the
Equity tax withheld.
The amount of the funds on a company's Balance Sheet Guarantee
contributed by the owners (the stockholders) plus the retained A promise given by a person called 'the guarantor' to pay another
earnings (or minus the losses). person's installment/outstanding balance if that person does not
Equity/down payment pay them.
Customer's stake in the vehicle, customer pays a vehicle value's Hiba
part before financing. Gift/Transfer of ownership of an asset without any consideration.
Expiry Date Historical Cost Convention
The date of expiry specified by the Bank on the Card. Recording transactions at the actual value received or paid.
External agencies Hypothecation
Agencies providing services to customers which are on Bank's Process of placing a charge / lien on vehicle financed by the
panel. Bank.
Facility Rate / Pricing IAS
Profit rate charged on the product/service. International Accounting Standards.
Fatwa IFRIC
A decree by a competent Shariah scholar qualified to issue International Financial Reporting Interpretation Committee.
decrees (mufti) on a matter giving an opinion about the position of
a matter in the light of the Shariah rules and principles. IFRS
International Financial Reporting Standards.
FCY
Foreign Currency.

Ijara/Ijarah Liabilities
Letting on lease; technically, sale of a definite usufruct in Any or all amounts payable whatsoever by the customer to the
exchange for a definite reward; commonly used for wages. It also Bank.
refers to a mode of financing adopted by Islamic banks. It is an
arrangement under which an Islamic bank leases equipment, a Linked Account
building or other facility to a client against an agreed rental. Account opened for making monthly payments/installments.
Ijarah Expense Litigation charges

Installment of rent paid for leasing an asset are shown as ’Ijarah Charges which will be incurred at the time of filling a suit by the
expense in the books of the lessee. bank against a defaulted customer.
Ijarah Revenue Liquid Assets

Installments of rent received on leased assets by the financial The assets which are readily convertible into cash without
institutions. recourse to a court of law.
Impairment allowances LOU

A provision held on the balance sheet as a result of the raising of Letter of understanding between the bank and the customer
a charge against profit for the incurred loss inherent in the lending mentioning some of the important terms & conditions related to
book. An impairment allowance may either be identified or the financed product usage.
unidentified and individual or collective. Market Capitalization
Income Estimation Agency Number of ordinary shares in issue multiplied by the market value
Agency used for assessing customer's income. of shares as at the year end.
Income Spread Materiality

Represents the difference between the average rate of income The relative significance of a transaction or an event the omission
earned and the average rate of cost paid on funds. or misstatement of which could influence the economic decisions
of users of financial statements.
Investment Assets
With reference to Islamic banks, they are investments in financial Maturity
instruments using any of the suitable Islamic financial instruments. Financing payment completion.
Investment Risk Reserve Merchant

With reference to Islamic banks, it is the amount appropriated out Any person / entity supplying goods and / or services and / or
of the income of investment account holders, after allocating the other benefits who accepts the Card as a means of payment.
mudarib’s share, in order to provide a cushion against future Microfinance
losses for investment account holders. The provision of financial services to micro-entrepreneurs and
Islamic Banking small businesses, which lack access to banking and related
Banking in consonance with the ethics and value system of Islam services due to the high transaction costs associated with serving
as compared to conventional banking that conducts its business these client categories.
of borrowing and lending on the basis of interest. Month
Islamic Credit Card Calendar month.
It is an Islamic alternative to the conventional credit card. Mortgages
ISO 27001 Mortgage is the transfer of an interest in specific immovable
ISO/IEC 27001 formally specifies a management system that is property for the purpose of securing the payments by the
intended to bring information security under explicit management customer.
control. Being a formal specification means that it mandates Mudarabah
specific requirements. Organizations that claim to have adopted An agreement between two or more persons whereby one or
ISO/IEC 27001 can therefore be formally audited and certified more of them provide finance, while the other provides
compliant with the standard. entrepreneur ship and management to carry on any business
Istisna’a/Istisna venture whether trade, industry or service, with the objective of
This is a kind of sale where a commodity is transacted before it earning profits. They share the profit in an agreed proportion. The
comes into existence. It means: To order a manufacturer to loss is borne only by the financier(s) in proportion to their share in
manufacture a specific commodity for the purchaser. If the total capital.
manufacturer under takes to manufacture the goods for him with Mudarabah Certificate
material from the manufacturer, the transaction of Istisna comes A financial instrument devised by Islamic investment companies
into existence. But it is necessary for the validity of istisna that the to mobilize funds for investment. A Mudarabah certificate can be
price is fixed with the consent of the parties and that necessary for a specific purpose or for a general purpose. The former is
specification of the commodity (intended to be manufactured) is related to financing of specific projects and matures only on the
fully settled between them. completion of the project. The latter can have a specific or
IVR indefinite duration but proceeds can be invested in any halal
Interactive voice response (IVR) is a technology that allows a business. Both the types can be issued in negotiable form and
computer to interact with humans through the use of voice and can be either registered or bearer.
DTMF (Dual Tone Multi Frequency) tones input via keypad. Mudarabah Shares
KIBOR Normally issued by the state, they are instruments for obtaining
Karachi Interbank Offer Rate as directed by SBP on daily basis. funds from the private sector on the basis of Mudarabah. The
state issues a share certificate, indicating the price, the period
Lawyer appraisal agency and the terms of the contract. The funds thus collected are
Agency used to verify and appraise the property document. invested in some profit-yielding project so that the state can share
profit or loss with the public.
Leasing Certificate
Leasing certificate is an Islamic financial instrument. The Mudarib
certificate is offered by Islamic banks to savers when the latter A working partner; the partner who provides entrepreneurship
want to invest their funds in lease operations. and management in a Mudarabah agreement.
Lease Facility Musharakah
A lease is a contractual arrangement calling for the lessee (user) A partnership contract where all the partners invest funds and are
to pay the lessor (owner) for use of an asset. not restricted from working for the partnership.

NCCA/ Non Checking Account cotton from farmers on a Salam basis and, in turn, the buyer in the
A type of account where a customer can only make deposits but first Salam contract enters into a new separate Salam contract
cannot withdraw funds from the account. As such, no instruments with textile mills so as to provide them, by means of that new
(debit card, Cheque book, internet banking etc.) are provided to Salam contract, with cotton, the specifications of which are similar
the customer when opening this type of account. to the specifications of the cotton to be acquired under the first
Salam contract, without making the execution of the second
Net Assets Value per Share Salam contract contingent on the execution of the first Salam
Shareholders’ funds divided by the number of ordinary shares in contract.
issue.
Payment Facility
Net Dividends To pay any amount(s) to any person / party for any purpose
Dividends net of withholding tax. settlement of any bills or for any other purpose approved by the
NOC Bank from time to time.
No Objection Certificate issued in favor of the customer after Payment Period
financing clearance. Tenure of the facility.
Non-Performing Loans (NPL) Pension Fund
A financing where the client is not repaying the financier as A fund from which pensions are paid, accumulated from
agreed. contributions from employers, employees, or both.
Non-Performing Loan-Substandard Category PIN/ ATM PIN
Where markup/interest or principal is overdue by 90 days or more The Personal Identification Number issued to a Card member to
from the due date. enable the Card member or a Supplementary Card member or
NOSTRO selected by a Card member or a Supplementary Card member
An accounting term used to distinguish an account held for and generated through IVR (Interactive Voice Recording) to use
another entity from an account another entity holds. the Card at an ATM for a Cash Advance.
NPLs to Gross Advances/Loans Pre-Payment/ Early Settlement

Represents the infected portfolio of the bank and is calculated by A one off payment along with FED charges which customer may
dividing the total non-performing loans by gross advances. be asked to make if customer decide to pay off financing facility
early before maturity.
Object deferred sale
An alternate term for bai‘ al-salam, where money is paid in Pre-Payment Price
advance and the goods are delivered later. Price applied on pre-payment of facility.
Off Us ATM Price Earnings Ratio (P/E Ratio)

Transaction conducted on other bank ATM. Market price of a share divided by earnings per share.
On Us ATM Principal
Transaction conducted on issuer's bank ATM. The amount of financing by the bank.
Open-END Fund Processing Fee

A regulated investment company with a pool of assets that Onetime Fee charged on approved amount only for processing.
regularly sells and redeems its shares. Profit-Sharing Deposits
Operating ’ijarah Financial instrument of riba-free economy. Indicates deposits with
An operating lease that does not include a promise to transfer the commercial banks on the basis of profit sharing.
title of the leased asset to the lessee at the end of the lease. Progressive Letter
Outstanding balance The detailed information/events/picture provided by the
Any unpaid amount with respect to a financing facility. cardholder for continuing his/her dispute with the bank against
disputed transaction evidences.
Overdue rentals/ late payments
Amount of rentals which has not been paid as of its due date (or Provision
maturity) date. All financial arrangements become overdue one With reference to Islamic banks, a provision is essentially a
business day after their due date. A customer who is past due contra-asset in the statement of financial position and is
may be subject to charity. constituted by charges made as expenses to the banks’ income
statement.
Parallel istisna
Another form of Istisna'a, known in modern custom as Parallel Rabb-ul-Maal
Istisna'a 'M-lstisnab at-Mu'wazi", takes effect through two A person who invests capital in a Mudarabah.
separate contracts. In the first contract, the Islamic Financial Rate revision letter
Institution acts in the capacity) of a manufacturer, builder or Letter for customer when the applicable rate is revised annually.
supplier and concludes a contract with the customer. In the
second contract, the Institution acts in the capacity of a purchaser Ready Delivery
and concludes another contract with a manufacturer, builder or Vehicle available at the dealer for delivery after payment.
supplier in order to fulfill its contractual obligations towards the
customer in the first contract. By this process, a profit is realized Ready Delivery used
through the difference in price between the two contracts and, in Used vehicle available at dealer's end for delivery after payment.
most cases, one of the two contracts is concluded immediately, Receivables
(I.e. The Istisna'a contract entered into with the manufacturer, With reference to Islamic banks, receivables are amounts due
builder or supplier), while the second contract (i.e. The contract from clients as a result of sale transactions through the financial
entered into with the customer) is concluded later. instruments of Murabahah, Salam or ’istisna‘.
Parallel Salam Registration charges
If the seller enters into another separate Salam contract with a Amount required for registering the vehicle with Excise and
third party to acquire goods, the specification of which Taxation Office.
corresponds to that of the commodity specified in the first Salam
contract, so that he (the seller) can fulfil his obligation under that Rental Payment
contract, then this second contract is called, in contemporary Amount paid by a lessee to a lessor for the use of an asset.
custom, Parallel Salam. The following is an example of such a
contract. An Institution on one hand buys a specified quantity of

Reserves Service Establishment
A reserve is essentially a component of equity (of either Merchant acquiring bank who authorize it's merchant to accept
investment account holders and/or shareholders) and is card transaction as per agreement and able to respond disputes
constituted by appropriations out of income. queries.
Residual Value Service Fee/ Annualized Percentage Rate (APR)
Value of the asset after completion of the Ijarah period. Fee as determined by the Bank and prescribed in the Schedule of
Charges and payable by the customer on the outstanding
Restricted investment account Liabilities and other amounts.
Relating to Islamic banking, refers to an investment account in
which the bank has the authority to invest the account holder’s Shareholders’ Funds
funds on the basis of Mudarabah contract or agency based Total of issued and fully paid share capital and capital and
contract for investment, but has certain restrictions as to where, revenue reserves.
how and for what purpose the funds are to be invested. Further,
the Islamic bank may be restricted from commingling its own Shariah Audit
funds with the restricted investment account funds for purposes of Audit of the operations of an Islamic financial institution to assess
investment. the extent to which the institution adhered to the requirements of
the Shariah.
Return on Assets (ROA)
Indicator of profitability of the business relative to the value of its Shariah Supervisory Board
assets, calculated by dividing the net profit (profit after tax) to the Committee of Islamic scholars in Islamic Banks for guidance and
average total assets for the period. supervision and whose decisions are binding upon the bank.
Return on Average Equity Shariah Compliant

Net profit for the year, less preference share dividends if any, An act or activity that complies with the requirements of the
expressed as a percentage of average ordinary shareholders’ Shariah, or Islamic law. The term is often used in the Islamic
equity. banking industry as a synonym for “Islamic”—for example,
Shariah-compliant financing or Shariah-compliant investment.
Riba
Riba literally means increase, addition, expansion or growth. It is, Shirkah
however, not every increase, or growth, which has been A contract between two or more persons who launch a business
prohibited by Islam. In the Shariah, Riba technically refers to the or financial enterprise with the purpose of making a profit.
premium that must be paid without any consideration in a Loan Shirkah al-‘aqd
contract. Two or more persons may continue to carry on business on the
Riba Al-Fadl condition that capital and profit will be shared among them. This
A sale transaction of the ’amwal al-ribawiyah (commodities where is distinguished from shirkah al-milk, which is partnership in joint
the injunction relating to Riba is applicable) in which a commodity property without common commercial intention.
is exchanged for the same commodity but unequal in amount and Shirkah al-milk
the delivery of at least one commodity is postponed. To avoid riba A proprietary partnership occurs when two persons inherit or
al-fadl, the exchange of commodities from both sides should be purchase something together without common commercial
equal and instant. intention. Neither of them is permitted to dispose off the other’s
Riba Al-Nasi’ah portion except with the other’s permission. Each of them is
Increment on the principal of a loan payable by the borrower. It considered a stranger in regard to the other’s portion.
refers to the practice of lending money for any length of time on Shukuk/Sukook/Sukuk
the understanding that the borrower would return to the lender at Sukuk are certificates of equal value representing undivided
the end of this period the amount originally lent together with an shares in ownership of tangible assist, usufruct and services or (in
increment. the ownership of) the assets of particular projects or special
Right of Set Off investment activity.
In an event of default or otherwise, bank has the right of set off i.e. Subsidiary Company
bank at its discretion or otherwise and without giving notice to the A company is a subsidiary of another company if the parent
customer, reserves the right to recover outstanding amount(s) company holds more than 50% of the nominal value of its equity
from any of Customer's Account(s) maintained with the bank. capital or holds some share in it and controls the composition of
Risk Weighted Assets its Board of Directors.
On Balance Sheet, assets and the credit equivalent of off balance SMS Fee
sheet assets multiplied by the relevant risk weighting factors. SMS - Short Message Service Charges
Rupee/PKR Statement of Account
Pakistani Rupee Currency. The Bank's monthly or other periodic statement of account send
Salaried Individual to its customers showing particulars of the transactions carried
Person employed on a salaried basis. out.
Sale Order Suit

Confirmation document sent to the customers before delivering Legal case filing.
Vehicle. Takaful
Schedule of Charges Islamic Insurance. A scheme of mutual support that provides
The document prescribing Service Fee(s), charges and other insurance to individuals against hazards of falling into
fee(s) applicable to the Card/ BTF, Card Transactions and / or unexpected and dire need.
Card Account, issued by the Bank bi-annually to the Card Takaful Contribution
members. The amount payable to a waqf based takaful company in order to
Secured Limit become Takaful participant for the coverage of a risk at a
Financing Limit which has been granted by bank and is secured pre-determined takaful rate.
against collateral/liquid/non-liquid securities. In an event of Takaful Products
default, or otherwise, bank has the right to recover the amount(s) The products designed to cover the customers’ liability / assets to
outstanding against the said security. any unforeseen circumstances which customer may face in
Self-Employed Professional future.
Individual having his own professional business.

TAT – Turn Around Time Waqif
Time required for application processing. Relating to the law of waqf, refers to the person who establishes or
donates his property by way of waqf.
Temporary credit
A limited period of credit posted by bank into cardholder's card Weighted Average Cost of Deposits
account for disputed transaction. Percentage of the total cost expensed on average deposits of the
bank for the period.
Tenure
The length of time for which a term finance/loan has been Withdrawal Facility
approved and is typically structured in 12-month multiples. To withdraw cash either through the Automated Teller Machines
(“ATMs”) or through use of a Debit Card held by the Customer
Tijarah Financing (“Debit Card”).
Sale & Agency based financing facility for customers who sell
finished goods on credit basis. This facility enables customers to Zakah (zakat)
sell their finished goods stock, meet their working capital A certain portion of wealth levied on Muslims having wealth above
requirements and enjoy the benefits of cash sales. an exemption limit (nisab) at a rate fixed by the Shariah to purify
wealth. Zakat is one of the five pillars of Islam. The object is to take
Time barred Transactions away a part of the wealth of the well-to-do and to distribute it
A posted transaction which is disputed after 120 days’ time-limit among the poor and the needy.
or MasterCard/Visa allowable time-limits by cardholder.
Title of the property
Documents identifying the owner of the property.
Title of vehicle
Documents identifying the owner of vehicle such as excise file
and registration book in Autos.
Top - Up
Top Up means line replenishment/enhancement.
Total Cash Outlay (TCO)
An amount including down payment, takaful, processing fee etc.
which is paid after Auto finance approval.
Total Monthly Payment (TMP)
Equal monthly amount payable including installment (Principal +
profit) and takaful contribution amount.
Trenches
Financing/Loan disbursed in parts are called trenches.
Undertaking
Unilateral promise/Indemnity provided by the customer.
Units
Undivided portions in an asset.
Unrestricted investment account
Relating to Islamic banking, refers to an investment account
where the account holder authorizes the Islamic bank to invest the
account holder’s funds on the basis of Mudarabah contract in a
manner which the Islamic bank deems appropriate without laying
down any restrictions as to where, how and for what purpose the
funds should be invested.
Unsatisfactory Credit History
Customer is not making payments against availed cross sell
facility/product resultantly bank has right to close either temporary
or permanently said product/facility.
US Dollar
Currency of the United States of America.
VaR
Value at Risk is an estimate of the potential loss which might arise
from market movements under normal market conditions, if the
current positions were to be held unchanged for one business
day.
Wakalah
Contract of agency in which a person delegates his
rights/authorities/business to another and substitutes the other in
his own place. The latter is called the wakil, or agent, and the
former is called muwakkil, or principal.
Waqf
In Arabic language the word Waqf means preventing something
from movement. In Shariah terminology, Waqf refers to making a
property invulnerable to any disposition that leads to transfer of
ownership, and donating the usufruct of that property to
beneficiaries.

Meezan Bank Limited
Dividend Mandate Form
According to section 242 of Companies Act, 2017 and Circular No. 18/2017 dated August 1, 2017 issued by Securities and Exchange
Commission of Pakistan (SECP) has directed all listed companies to pay dividend only through electronic mode directly into the
bank accounts designated by the entitled shareholders with effect from November 1, 2017.
In view of above, Shareholder(s) are advised to provide their complete bank account / IBAN detail as per format given below required
under clause 7,8 and 9 (ii) of the Companies (Distribution of Dividends) Regulations, 2017 issued under S.R.O.1145 (I) / 2017 dated
November 06, 2017 by SECP enabling us to comply with above Section/Circular.
For physical Shareholder(s): THK Associates (Pvt) Limited, 1st Floor, 40-C, Block 6, P.E.C.H.S.
Karachi 75400.
For CDC Accountholder (s) in case of CDC account holder/ Sub-accountholder, please provide said
details to CDC / to respective member Stock Exchange
OR
directly update IBAN detail on CDC portal through given link:
https://eipo.cdcaccess.com.pk/public/index.xhtml
Company Secretary
Dividend Mandate Details
It is requested that all my cash Dividend amounts declared by the Bank, may be credited into the following bank account:
Folio Number / CDC Participants ID A/c No.
Name of Shareholder
Title of the Bank Account
Bank Account Number (Complete) / IBAN
Bank’s Name, Branch Name, Code and Address
Cell Number
Landline Number, if any
Email Address
CNIC Number/
Passport Number (in case of foreign Shareholder)
(attach copy)
It is stated that the above mentioned information is correct, that I will intimate the changes in the above mentioned information
to the Company and the concerned Share Registrar as soon as these occur.
Shareholder’s Signature
Meezan Bank Limited, Meezan House C-25, Estate Avenue S.I.T.E., Karachi. PABX: (92-21) 38103500 UAN No. 021-111-331-331 & 111-331-332 Website: www.meezanbank.com
https://eipo.cdcaccess.com.pk/public/index.xhtml
MEEZAN BANK LIMITED
FORM OF PROXY
The Company Secretary

Meezan Bank Limited
Meezan House C-25,
Estate Avenue S.I.T.E,
Karachi, Pakistan.
I/We of being a member(s) of Meezan Bank Limited and holder of
ordinary shares as per Share Register Folio No. and/or CDC Investor Account No. /
Participant I.D No. and Sub Account No. do hereby
appoint of as my/our proxy to vote
and act for me/us on my/our behalf at the 23rd Annual General Meeting of Meezan Bank Ltd. to be held on Thursday, March 28, 2019 at
9:30 a.m. at Meezan House, C-25, Estate Avenue, S.I.T.E., Karachi, Pakistan and at any adjournment thereof.
Signed this day of 2019.
Please affix
Rupees five
revenue
stamp
Signature of Member(s)/Attorney
The Signature should agree
with the specimen registered
with the Company
Witness 1 Witness 2
Signature: Signature:
Name: Name:
Address: Address:
CNIC or Passport No: CNIC or Passport No:
NOTES: 2. In case of corporate entity, the Board of Directors’ resolution/power of

1. Proxies in order to be effective must be received by the Company not attorney with specimen signature of the nominee shall be produced
later than 48 hours before the time of the meeting. (unless it has been provided earlier) at the time of Meeting.
2. A member entitled to attend and vote at the Meeting may appoint another
person as his/her proxy to exercise all or any of his rights to attend, For Appointing Proxies:
speak and vote for him/her. 1. The Proxy form be signed by the appointer or his attorney duly authorized
3. Members are required to timely notify any change in their address to in writing, or if the appointer is a body corporate, be under its seal or
Bank’s Shares Registrar THK Associates (Pvt.) Ltd. 1st Floor , 40-C, be signed by an officer or any attorney duly authorized by it.
Block-6, P.E.C.H.S., Karachi. 2. In case of individuals, the account holder or sub-account holder and
4. Shareholders will further have to follow the guidelines as laid down in /or the person whose securities are in group account and their
Circular 1 dated January 26, 2000 issued by the Securities and registration details are uploaded as per the regulations, shall submit
Exchange Commission of Pakistan. the proxy form as per the above requirement.
5. If any member appoints more than one proxy and more than one 3. In case of corporate entity, the Board of Directors’ resolution/power of
instruments of proxies for any one meeting are deposited with the attorney with specimen signature of the nominee shall be submitted
Company, all such instruments of proxy shall be rendered invalid. alongwith proxy form to the Company.
4. The proxy form shall be witnessed by two persons whose name,
For Attending the Meeting: addresses and CNIC numbers shall be mentioned on the form.
1. In case of individuals, the account holder or sub-account holder and/or 5. Attested copies of CNIC or the passport of the beneficial owners and
the person whose securities are in group account and their registration the proxy shall be furnished with the proxy form.
detail are uploaded as per the regulations, shall authenticate his/her 6. The proxy shall produce his/her original CNIC or original passport at
identity by showing his/her original Computerized National Identity Card the time of the Meeting.
(CNIC) or original passport at the time of attending the Meeting.
Please affix
correct
postage
The Company Secretary
Meezan Bank Limited
Meezan House, C-25,
Estate Avenue, SITE,
Karachi, Pakistan.
2 1
Head Office: Meezan House, C-25, Estate Avenue, SITE, Karachi - Pakistan.
PABX: (92-21) 38103500 UAN: 111-331-331 & 111-331-332
www.meezanbank.com
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What is the history of Meezan Bank?

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Bank with the Best

Annual Report 2018

ABOUT PAKISTAN BANKING AWARDS

The Year in Review

Quaid-e-Azam Mohammad Ali Jinnah

* TOTAL NUMBER OF CUSTOMERS AS OF DECEMBER 31, 2018

EMPLOYEES AND GLOBALLY RECOGNIZED AS

BILLION BILLION BILLION

GROWTH IN DIGITAL PRESENCE

ENTITY CREDIT RATINGS 1st DEDICATED ISLAMIC BANKING YOUTUBE CHANNEL

AA+/A1+ BY JCR - VIS 194 %

Meezan Bank’s retail offerings range from deposit

Our Alternate Distribution Channels include a very

Our Unfailing Service

Meezan Bank has put systems and a service culture in

Customer service isn’t just about being courteous to

Being the Fastest Growing

Meezan Bank is now the 7th largest bank in terms of

Meezan Bank has developed its own risk based Shariah

At Meezan Bank, Shariah compliance is not a business

Meezan Bank has introduced a variety of banking

Statement of Financial Position Statement of Financial Position

Earning per Share (Rs) Earning per Share 7.67

Financing / Advances to Deposit Ratio-ADRFinancing

(Comparitive information has been reclassiﬁed / rearranged for better presentation)

22 ANNUAL REPORT 2018

17,809 12,094 9,911

8,666 6,606 4,970

1,158 419 266986 (95)

11,648 7,963 6,539

5,745 3,623 3,272

1,389 1,497 1,532

70,377 60,265 46,985

203,439 157,389 126,677

8,030 6,983 6,650

13,781 11,080 9,184

13,956 11,801 10,467

4,900 4,364 3,669

275 222 201

1.05 1.10 1.15

12.50 15.00 5.00

4.63 8.24 9.72

3.75 2.05 1.62

21.44 14.59 15.12

50.68 54.50 49.96

58.13 41.94 23.21

27.28 16.28 13.52

ANNUAL REPORT 2018 23

Net Assets 40,333 15 35,077 15 30,474 16 26,347 10 23,890 26 18,913 14

2018 18 Vs 17 2017 17 Vs 16 2016 16 Vs 15 2015 15 Vs 14 2014 14 Vs 13 2013 13 Vs 12

Total income 35,630 26 28,367 21 23,512 5 22,300 26 17,767 28 13,868 10

(Comparitive information has been reclassiﬁed / rearranged for better presentation)

24 ANNUAL REPORT 2018

(Comparitive information has been reclassiﬁed / rearranged for better presentation)

ANNUAL REPORT 2018 25