FBL September 2023

Contents
Corporate Information 2
Unconsolidated Financial Statements
Directors' Report 4
Condensed Interim Unconsolidated Statement of Financial Position 15
Condensed Interim Unconsolidated Profit and Loss Account 16
Condensed Interim Unconsolidated Statement of Comprehensive Income 17
Condensed Interim Unconsolidated Statement of Changes in Equity 18
Condensed Interim Unconsolidated Cash Flow Statement 19
Notes to the Condensed Interim Unconsolidated Financial Statements 20
Consolidated Financial Statements
Directors' Report 46
Condensed Interim Consolidated Statement of Financial Position 53
Condensed Interim Consolidated Profit and Loss Account 54
Condensed Interim Consolidated Statement of Comprehensive Income 55
Condensed Interim Consolidated Statement of Changes in Equity 56
Condensed Interim Consolidated Cash Flow Statement 57
Notes to the Condensed Interim Consolidated Financial Statements 58
September 30, 2023 Third Quarter 1

Corporate Information
Board of Directors
Mian Muhammad Younis Chairman/Non-Executive Director

Mr. Ahmed Abdulrahim Mohamed Abdulla Bucheery Vice Chairman/Non-Executive Director
Mr. Yousaf Hussain President & CEO
Mr. Imtiaz Ahmad Pervez Non-Executive Director
Mr. Ali Munir Independent Director
Mr. Juma Hasan Ali Abul Non-Executive Director
Mr. Abdulelah Ebrahim Mohamed AlQasimi Non-Executive Director
Mr. Abdulla Abdulaziz Ali Taleb Non-Executive Director
Ms. Fatima Asad Khan Independent Director
Mr. Mohsin Tariq Independent Director
Ms. Sadia Khan Independent Director
Mr. Farooq Rahmatullah Khan Non-Executive Director
Board Audit & Corporate Governance Committee
Mr. Ali Munir Chairman

Mr. Ahmed Abdulrahim Mohamed Abdulla Bucheery Member
Mr. Juma Hasan Ali Abul Member
Mr. Mohsin Tariq Member
Board Risk Management Committee
Mr. Imtiaz Ahmad Pervez Chairman

Mr. Abdulelah Ebrahim Mohamed AlQasimi Member
Mr. Abdulla Abdulaziz Ali Taleb Member
Mr. Ali Munir Member
Mr. Yousaf Hussain Member
Recruitment Nomination and Remuneration Committee
Mr. Ahmed Abdulrahim Mohamed Abdulla Bucheery Chairman

Mr. Mohsin Tariq Member
Ms. Fatima Asad Khan Member
Ms. Sadia Khan Member
Board Strategy Committee
Mian Muhammad Younis Chairman

Mr. Ahmed Abdulrahim Mohamed Abdulla Bucheery Member
Mr. Imtiaz Ahmad Pervez Member
Ms. Fatima Asad Khan Member
2 Third Quarter September 30, 2023

Corporate Information
Board IT Committee
Ms. Sadia Khan Chairperson

Mr. Abdulelah Ebrahim Mohamed AlQasimi Member
Mr. Abdulla Abdulaziz Ali Taleb Member
Shariah Board
Mufti Muhammad Mohib-ul-Haq Siddiqui Chairman Shariah Board

Dr. Mufti Khalil Ahmad Aazami Shariah Board Member
Mufti Muhammad Ashja Khan Shariah Board Member
Mufti Abdul Basit Shariah Board Member
Mufti Muhammad Abdullah Resident Shariah Board Member
Syed Majid Ali Chief Financial Officer
Mr. Aurangzeb Amin Company Secretary & Head of Legal
M/s. KPMG Taseer Hadi & Co., Chartered Accountants Auditors
M/s. Mohsin Tayebaly & Co., Advocate Legal Advisors
Registered Office Share Registrar

Faysal Bank Limited CDC Share Registrar Services Limited
Faysal House, St-02, Commercial Lane, CDC House, 99-B, Block-B,
Main Shahrah-e-Faisal, SMCHS, Main Shahrah-e-Faisal,
Karachi, Pakistan Karachi-74400
UAN : (92-21) 111-747-747 Tel : (92-21) 111-111-500
Tel : (92-21) 3279-5200 Fax : (92-21) 34326053
Fax : (92-21) 3279-5226 Email : info@cdcsrsl.com
Website : www.faysalbank.com

Directors’ Report
Unconsolidated Financial Statements
On behalf of the Board of Directors, we are pleased to present the Directors’ Report along with
unaudited condensed interim financial statements of Faysal Bank Limited (“FBL” or “the Bank”)
for the quarter and nine months ended September 30, 2023.
Company Profile
FBL was incorporated in Pakistan on October 3, 1994, as a public limited company and its
shares are listed on Pakistan Stock Exchange. FBL offers a wide range of Islamic banking
services to all customer segments, i.e., Retail, Small & Medium Sized Enterprises, Commercial,
Agri-based, and Corporate.
The bank surrendered its conventional banking license on 31 December 2022 and effective 01
January 2023 started operations under an Islamic Banking License issued by the State Bank of
Pakistan. Its footprint spreads over 270 cities across the country with 700 branches offering
sharia-compliant banking services.
Holding Company
Ithmaar Bank B.S.C (closed), a banking entity regulated by the Central Bank of Bahrain, is the
parent company holding directly and indirectly 66.78% (2022: 66.78%) of the Bank’s shares.
Ithmaar Bank B.S.C. (closed) is a wholly owned subsidiary of Ithmaar Holdings B.S.C. Dar Al-
Maal Al-Islami Trust (DMIT) is the holding entity of Ithmaar Holding B.S.C. and the ultimate
parent of the Bank. DMIT was formed by an indenture under the laws of the Commonwealth of
The Bahamas for the purpose of conducting business affairs in conformity with Islamic law,
principles, and traditions.
Economic Update
The current global economic landscape is showing promising signs of progress and is set to
exceed the initial growth projections for 2023. However, this momentum is facing serious
headwinds ensuing from, a slower economic recovery in China, elevated global inflation, tight
monetary conditions, and ongoing geopolitical uncertainties. As per the International Monetary
Fund (IMF), global growth is expected to hover around 3% this year and 2.9% in the next year.
The estimates are currently heavily reliant on expansions in the majority of emerging and
developing economies, whereas there is a continuing slowdown across majority of advanced
economies. Asian Development Outlook September 2023 forecasts that economies in
developing Asia and the Pacific will expand by 4.7%, while highlighting risks including climate
risks and continued supply-chain disruptions from the Russia-Ukraine conflict and recent
turmoil in Palestine.
The headwinds for the Pakistan economy continue to prevail in the ongoing fiscal year as the
Large Scale Manufacturing (LSM) for the month of July has remained in the negative growth
territory. On YoY basis, LSM declined by 1.09% in July 2023, while on MoM basis, it decreased
by 3.62%. The auto industry remained under pressure due to ongoing inflationary pressures
and tight auto financing conditions. Car production and sales decreased by 59.5% and 50.4%,
Jul-Aug 2023 as compared to the same period last year, while Trucks & Buses production and
sale decreased by 63.2% and 41.1%. Similarly, the sale of petroleum products declined by 7%

during Jul-Aug 2023 to 2.8 million tons against 3.0 million tons in the same period last year. On
the contrary, total cement dispatches significantly increased by 45% during July-Aug 2023
against same period last year and reached 7.7 million tons.
Consumer Price Index (CPI) increased by 31.4% on year-on-year basis in September

compared to 27.4% increase in August’ 23 and 23.2% in September’ 22. On month-on-month
basis, it increased by 2% in September ’23 as compared to an increase of 1.7% in the previous
month and a decrease of 1.2% in September’22. Major drivers contributing to the year-on-year
increase in CPI include non-perishable food items (38.4%), Alcoholic Bev. & Tobacco (87.4%),
Furnishing & Household Equipment (39.3%), Housing, Water, Gas, Electricity & Fuels (29.7%)
and Transport (31.2%) among others. The SBP expects inflation to be sharply lower in the
second half of FY’24 with an average CPI of 22% vs 29% in FY’23. The IMF has forecasted that
this number will be much higher, at 25.9%.
Current Account deficit for the first two months of the ongoing fiscal year was reported at USD
935 million compared to a deficit of USD 2.03 billion for the same period last year, on the back
of a substantial decline in the value of imports. However, worker’s remittances during July-
August ’23 saw a drop to USD 4.1 billion against USD 5.3 billion received during July-August
’22. Improved external trade balances and administrative action by the government, helped
PKR strengthen against USD, receding from an all-time high of PKR 307/USD as on 5th
September to around PKR 278/USD as on 13th October. The SBP expects the current account
deficit for FY’24 to be between 0.5%-1.5% of GDP after 0.7% in FY’23. These numbers have
depicted a significant improvement over FY’22 wherein the CA deficit was 4.7% of GDP.
The recent appreciation of PKR against USD and our favorable current account position have
instilled a sense of increased optimism. This may assist in alleviating some pressure from the
interim government. However, complementing monetary and fiscal policies to curb inflationary
pressures and happening of fresh elections remain key to address the prevailing conditions. On
the external front, recent war in Palestine needs to be closely monitored as prolonged tensions
could have negative ramifications for the global commodity prices, predominantly oil.
Bank’s Performance
Financial Highlights
Rs. in million
Key Balance Sheet Numbers September ‘23 December ’22 Growth %
Investment 550,429 469,451 17.2
Financing 490,829 454,261 8.1
Total Assets 1,250,270 1,074,353 16.4
Deposits 949,567 781,571 21.5

Rs. in million
Profit & Loss Account September ‘23 September ’22 Growth %
Total Revenue 56,068 33,569 67.0
Total Expenses (28, 018) (19,281) 45.3
Profit before tax and provisions 28,050 14,288 96.3
Net provisions (3,937) 736 -634.9
Profit before tax 24,113 15,024 60.5
Tax (12,069) (7,363) 63.9
Profit after tax 12,044 7,661 57.2
Earnings per share (Rupees) 7.94 5.05 57.2
The current year signifies a momentous milestone for the Bank, as we proudly commemorate
our first year as a full-fledged Islamic Bank. With unwavering commitment to excellence, the
Bank has achieved remarkable financial performance and experienced unprecedented growth.
Despite the challenges that have come our way, the Bank has consistently demonstrated to be
a strong, resilient institution that Alhamdulillah has weathered the storms to celebrate this
significant milestone. On a standalone basis, FBL has achieved a record-breaking Profit Before
Tax (PBT) of PKR 24.1 billion in 9m’23, surpassing the corresponding period last year PBT of
PKR 15.0 billion by an impressive 60.5%. The quarterly profit has been on increasing trajectory,
and in Q3’23, owing to conversion to Islamic Banking, the Bank achieved its highest quarterly
profit ever and reached quarterly PBT of PKR 9.1 billion and PAT of PKR 4.5 billion. Profit After
Tax (PAT) rose to PKR 12 billion in 9m’23 representing a 57.2% increase from PKR 7.7 billion in
9m’22. Furthermore, Earnings Per Share exhibited a commendable rise, surging from PKR 5.05
to PKR 7.94.
The Bank continued to deliver on growth objectives and has substantially increased total
revenue by 67.0% over 9m’22 to PKR 56.1 billion. Robust growth in balance sheet (9m’23 vs
9m’22) coupled with an increase in spreads led to a year-on-year growth of 82.4% in net spread
earned taking it to PKR 49.1 billion in 9m’23. Healthy growth in current deposits of PKR 57
billion (20.9%) YoY and increase in the average benchmark rate helped improve the overall
spreads. Non-Fund income grew by 4.4% over the corresponding period last year and is at
PKR 6.9 billion in 9m’23. Excluding the loss on securities, non-fund income showed robust
growth of 13.6%.
As a result of prevailing circumstances of historically high inflation, a depreciating PKR relative

to the USD, and an expanding branch network, the bank's total expenses have risen by 45%
over 9m'22. However, the cost to income ratio has improved from 57.4% in 9m’22 to 50.0% in
9m’23. The net provision for 9m’23 was PKR 3.9 billion, compared to a reversal of PKR 0.7
billion in 9m’22. These include provisions of PKR 3.3 billon made to address any potential
unforeseen credit losses due to the challenging economic conditions. The Bank increased
general provision by PKR 3.4 billion taking the total coverage ratio to 100.1% from 89% in
Dec’22. The NPL ratio continued to reduce and is at 4.4%.

As a result of strong deposit mobilization and borrowings, FBL total assets continued to grow
and are at PKR 1.3 trillion. The upward trend in Current Accounts seen over past few years
continued, taking them to PKR 332 billion i.e., 19.7% growth over December 2022. Total
deposits also increased by 21.5% over December 2022 and reached PKR 950 billion. The
CASA mix, however, due to growth in rewarding Term Deposits, marginally decreased to 77.1%
from 80.0% at December 2022.
FBL’s net financing increased by 8.1% to PKR 491 billion, with the ADR reducing to 51.7% from
58.1% in December 2022. This reflects the bank’s prudent risk management policies.
We remain steadfast in our dedication to delivering good results and creating sustainable value
for our stakeholders. With a strong foundation and a strategic focus on growth, we are
confident in our ability to In Sha Allah, achieve new heights in the nearest future.
Outlook
Looking forward, FBL is well-positioned with good momentum as we enter the year 2024. We
are confident and are cognizant of the potential impact that prevailing economic conditions.
The Bank maintains unwavering commitment to strategically investing in branch network,
thereby propelling the growth of deposits We are actively implementing strategies to optimize
our customer service experience. In addition to our ongoing investment in branch
infrastructure, the Bank is focusing on providing cutting edge digital solutions and will invest in
modern technologies to improve digital offerings and customer experience. We understand the
urgency of tackling environmental challenges and contribute to a sustainable future. We are
committed to integrating environmental stewardship into all aspects of our business. Moreover,
we will continue to make investments in our workforce and foster an environment that promotes
our core values namely Faith, Integrity, Teamwork, Innovation and Care.
Credit Rating:
VIS Credit Rating Company Limited (VIS) and Pakistan Credit Rating Agency Limited (PACRA)
have re-affirmed the following entity ratings:
Long-Term AA
Short-Term A1+
Both the rating agencies assigned ‘Stable’ outlook to the bank.

Dividend
The Board of Directors, in their meeting held on October 26, 2023 declared an interim cash
dividend of Re. 1 per share (10%) for the nine months ended September 30, 2023. This is in
addition to Re. 1 already paid during the year bringing the total dividend for nine months to
Rs. 2 per share (September 30, 2022: Rs. 6).
Acknowledgement
On behalf of the Board and Management, we extend our gratitude to our esteemed
shareholders for their unwavering support. We are indebted to our customers for doing
business with FBL. We would like to place on record our appreciation for the Government of
Pakistan, the State Bank of Pakistan and the Securities and Exchange Commission of Pakistan
for their continued support and guidance and for developing and strengthening the banking
and financial services sector through continuous improvement in the regulatory and
governance framework.
As always, we would also like to express sincere appreciation for the Shariah Board. We would
also like to take this opportunity to recognize and commend the unwavering commitment and
exceptional efforts exhibited by our employees who are driving forward the growth and
expansion in all aspects. We extend our heartfelt thanks to them for their relentless dedication
and hard work.
Approval
In compliance with the requirement of the Companies Act, 2017, this Directors’ Report with the
recommendation of the Board Audit and Corporate Governance Committee has been approved
by the Directors in their meeting held on October 26, 2023 and signed by the Chief Executive
Officer and a director.
President & CEO Chairman

Islamabad
Dated: October 26, 2023

‫ڈ‬
‫ہا ا س ‪ 2023 30‬ا م ہ‪ 9‬ہ‬ ‫رڈآ فڈا ز ‪26‬ا ‪2023‬‬

‫وہ ل‬ ‫ادا ہا رو‬ ‫۔‬ ‫‪1‬رو )‪ (10%‬رى ڈ د ا ن‬
‫)‪ 6 :2022 30‬رو (۔‬ ‫ڈ ‪2‬رو‬ ‫دورا نادا د اس ح‪ 9‬ہ‬
‫ن‬
‫ا ا د‬ ‫ا ں‬ ‫ادا‬ ‫ز‬ ‫ا ام‬ ‫ناور‬ ‫رڈ اورا‬

‫و‬ ‫رى اور‬ ‫ى‬ ‫اورا‬ ‫رى ر‬ ‫۔ وناورر‬ ‫ا ر‬
‫آف‬ ‫ناور ر ا ا‬ ‫دو‬ ‫ن‪،‬‬ ‫ورك‬ ‫ر ىاور ر‬
‫ار ۔‬ ‫ن‬
‫ں‬ ‫ز‬ ‫ا‬ ‫اور‪FBL‬‬ ‫ا ر‬ ‫رڈ‬ ‫ح‪،‬‬

‫۔‬ ‫ا‬ ‫دل‬ ‫اور‬ ‫اوران ا‬
‫رى‬
‫ڈا ز اس‬ ‫رش‬ ‫ر‬ ‫‪ ،‬رڈ آڈٹ اور ر ر‬ ‫ں‬ ‫ا ‪2017‬‬

‫آ اورڈا‬ ‫ا‬ ‫ر اوراس‬ ‫ا ا ا س‬ ‫ر رٹ ڈا ز ‪26‬ا ‪2023‬‬
‫۔‬ ‫د‬
‫راور اىاو‬
‫ا مآ د‬
‫‪2023‬‬ ‫ر ‪26:‬ا‬
‫‪September 30, 2023‬‬ ‫‪Third Quarter‬‬ ‫‪9‬‬

‫‪ 21.5%‬ز دہ ھ اور‪950‬‬ ‫‪2022‬‬ ‫ڈز د‬ ‫۔‬ ‫‪ 19.7%‬ز دہ‬
‫و ‪،‬د ‪80% 2022‬‬ ‫ا‬ ‫‪ ،‬مڈ ز‬ ‫۔‪CASA‬‬ ‫رو‬
‫۔‬ ‫‪77.1%‬‬
‫‪58.1%‬‬ ‫‪22‬‬ ‫اور ‪ADR‬د‬ ‫رو‬ ‫‪491‬‬ ‫‪ 8.1%‬ا‬ ‫‪FBL‬‬

‫ں‬ ‫ز د ر‬ ‫ت‬ ‫دہ‬ ‫۔اس‬ ‫‪51.7%‬‬
‫۔‬
‫ط داور‬ ‫م ۔ا‬ ‫ر ا‬ ‫رز‬ ‫ا اورا ا‬

‫۔‬ ‫ا‬ ‫ں‬ ‫‪ ،‬ا ن ءا‬ ‫ر‬
‫)آؤٹ (‬
‫ر لاورا اط‬ ‫دى‬ ‫ا‬ ‫ر ۔‬ ‫‪FBL‬ا ر د د‬ ‫‪ 2024‬دا‬

‫ں وا‬ ‫ا‬ ‫آ ہ‬ ‫ا ات اور رے ر‬ ‫ل‬ ‫زر رى ر‬
‫رى رے‬ ‫ا‬ ‫ر‬ ‫اورا‬ ‫د‬ ‫رى ر‬ ‫اور ا د ۔‬
‫‪،‬‬ ‫ا‬ ‫‪،‬ڈ زٹ‬ ‫‪ ،‬اد‬ ‫۔‬ ‫مر‬ ‫رى ر‬ ‫ورك‬
‫رى‬ ‫ا اا‬ ‫م رى ر ۔ ا‬ ‫ر‬ ‫وس‬ ‫اور‬
‫ںاور‬ ‫زر اورڈ‬ ‫ا‬ ‫ڈ‬
‫رى‬ ‫وغد‬ ‫ا ا ادى تاور‬ ‫رى رى ر ۔او اورا‬
‫۔‬ ‫ا ا‬ ‫رى دى ا ا ر ا ن‪،‬د ارى‪ ،‬ورك‪ ،‬تاور ا‬ ‫ر‬
‫‪:‬‬ ‫ٹر‬
‫)‪ (PACRA‬درج ذ ادا را‬ ‫ا‬ ‫ٹر‬ ‫ن‬ ‫)‪(VIS‬اور‬ ‫‪ VIS‬ٹر‬

‫‪:‬‬ ‫ں دو رہ‬ ‫در‬
‫‪AA‬‬ ‫ا‬
‫‪A1+‬‬ ‫ا‬
‫۔‬ ‫آؤٹ د‬ ‫ں‬ ‫در‬ ‫ں‬ ‫ا‬ ‫دو ںر‬
‫‪10‬‬ ‫‪Third Quarter‬‬ ‫‪September 30, 2023‬‬

‫رت ا آ‬ ‫ا ا‬ ‫اس‬ ‫ل‬ ‫ا ر‬ ‫ل‪2023‬‬
‫ر د اور‬ ‫ل‬ ‫ل م‬ ‫ںاور ر ں‬ ‫ر آ ز ۔‬
‫رى ر اوراس ز‬ ‫ر‬ ‫ادارے‬ ‫ا‬ ‫رى ر و ں و د‬ ‫۔‬
‫بر ۔‬ ‫ر‬
‫ا‬ ‫ر د‬ ‫)‪(PBT‬‬ ‫ر رڈ ا ز‬ ‫ان‪ 24.1‬رو‬ ‫ا ادى ر‬

‫‪ 60.5%‬ز دہ ۔ا ح‬ ‫‪ 15.0‬رو‬ ‫ل ا‬ ‫‪،‬‬
‫ر ر‬ ‫رى‬ ‫ا‬ ‫ى‬ ‫ىر اور‪2023‬‬
‫)‪(PAT‬‬ ‫‪ 4.5‬رو ر ۔ ا ز‬ ‫‪ 9.1‬اور ا ز‬ ‫از‬ ‫اور‬
‫‪%57.2‬ا‬ ‫ھ ‪ 9 2023‬ہ ‪12‬‬ ‫‪ 2022‬ا ت ‪ 7.7‬رو‬
‫ھ ‪7.94‬رو ر ۔‬ ‫آ ن‪5.05‬رو‬ ‫ر ا۔‬
‫‪56.1‬‬
‫رو‬ ‫ر ر رى ر اور آ ‪ 67.0 9M'22‬ا‬ ‫ا‬
‫ا آ ‪YoY 82.4%‬‬ ‫رے‬ ‫ى‬ ‫ا ز‬ ‫اور‬ ‫ر ۔ ط‬
‫۔‪ 57‬رو )‪YoY (20.9%‬‬ ‫‪ 49.1 9M'23 ،‬رو‬ ‫ا‬
‫د ۔ن‬ ‫ا ز‬ ‫رك ح ا‬ ‫ا ا اوراو‬ ‫ڈ زٹ‬
‫ااور‪ 6.9 9M'23‬رو ر ۔ ر‬ ‫ل ا ت ‪ 4.4%‬ز دہ ا‬ ‫آ‬
‫۔‬ ‫‪13.6‬‬ ‫وہ‪ ،‬ن آ‬ ‫ن‬
‫و‬ ‫ورك ا‬ ‫اور ا‬ ‫ر‬ ‫رو‬ ‫‪،‬ا ڈا‬ ‫ا‬

‫و‬ ‫زر‬ ‫‪45%‬ز دہ ر ۔اس و د رى آ‬ ‫ا ا ت‪9M'22‬‬
‫ىآ ۔‬ ‫‪50.0% 9M'23‬‬ ‫‪57.4% 9M'22‬‬ ‫‪ ،‬حآ ن‬
‫‪ 0.7 9M'22‬رو ر ر ر رڈ ۔‬ ‫وو نر رڈ‬ ‫‪ 3.9 9M'23‬رو‬
‫ٹ ت‬ ‫ت و‬ ‫وو‬ ‫ان ‪ 3.3‬رو‬
‫ر‬ ‫د ‪22‬‬ ‫وو ن‬ ‫‪3.4‬رو‬ ‫۔‬
‫۔‬ ‫ر اور ‪4.4%‬‬ ‫۔ ‪NPL‬‬ ‫‪100.1%‬‬ ‫‪89%‬‬
‫رو‬ ‫‪1.3‬‬ ‫ت‬ ‫ا ا ت ‪ FBL‬ا‬ ‫ں و‬ ‫اور‬ ‫طڈ زٹ‬

‫‪22‬‬ ‫‪ ،‬د‬ ‫رو‬ ‫ر ر رى ر اوروہ‪332‬‬ ‫ا‬ ‫ں‬ ‫د۔‬

‫ا ا س‬ ‫ز ر ز‬ ‫اؤ‬ ‫اور رے‬ ‫ا‬ ‫ر‬ ‫‪PKR‬‬ ‫‪USD‬‬
‫ى‬ ‫د ؤ رو‬ ‫۔ ‪،‬‬ ‫د‬ ‫دؤ‬ ‫رى‬ ‫۔اس‬ ‫ا‬
‫۔ و ذ ‪،‬‬ ‫ر‬ ‫ى‬ ‫ت ا د دہ ت‬ ‫اور ا‬ ‫ں‬ ‫اور‬
‫ں‪ ،‬ص ر‬ ‫ؤ ا س‬ ‫دو ں در ن‬ ‫ورت‬ ‫ى ر‬
‫۔‬ ‫ا ات‬
‫‪%‬‬ ‫ںا ادو ر‬

‫‪17.2‬‬ ‫‪469,451‬‬ ‫‪550,429‬‬
‫‪8.1‬‬ ‫‪454,261‬‬ ‫‪490,829‬‬
‫‪16.4‬‬ ‫‪1,074,353‬‬ ‫‪1,250,270‬‬ ‫ت‬ ‫ا‬

‫‪21.5‬‬ ‫‪781,571‬‬ ‫‪949,567‬‬
‫‪%‬‬ ‫اؤ‬
‫‪67.0‬‬ ‫‪33,569‬‬ ‫‪56,068‬‬
‫‪45.3‬‬ ‫)‪(19,281‬‬ ‫)‪(28, 018‬‬ ‫ا ا ت‬

‫‪96.3‬‬ ‫‪14,288‬‬ ‫‪28,050‬‬
‫)‪(634.9‬‬ ‫‪736‬‬ ‫)‪(3,937‬‬ ‫وو ن‬

‫‪60.5‬‬ ‫‪15,024‬‬ ‫‪24,113‬‬
‫‪63.9‬‬ ‫)‪(7,363‬‬ ‫)‪(12,069‬‬
‫‪57.2‬‬ ‫‪7,661‬‬ ‫‪12,044‬‬
‫‪57.2‬‬ ‫‪5.05‬‬ ‫‪7.94‬‬

‫ات‬ ‫ر لاور‬ ‫آرا‬ ‫ز اور‬ ‫روس‪-‬‬
‫۔‬ ‫آ ہ‬
‫رج ا‬ ‫ات ا ر‬ ‫ن‬ ‫رى ل‬

‫وا‬ ‫‪1.09 LSM 2023‬‬ ‫د ‪،‬‬ ‫ا ات رر ۔‬ ‫)‪(LSM‬‬
‫ا‬ ‫د ؤاورآ‬ ‫۔‬ ‫وا‬ ‫‪ MoM ،‬د ‪،‬اس ‪3.62%‬‬
‫ل ا‬ ‫روں اوا راور و‬ ‫آ ا ىد ؤ ر ۔ ‪-‬ا ‪2023‬‬
‫ںاور ں اوا راور و‬ ‫‪،،‬‬ ‫وا‬ ‫‪ 59.5‬اور‪50.4‬‬ ‫ت‬
‫ا ‪ 2023‬دورا ن‬ ‫و‬ ‫۔ا ح و وڈ‬ ‫وا‬ ‫‪ 63.2‬اور‪41.1‬‬
‫ا‬ ‫‪،‬‬ ‫۔اس‬ ‫ل ا ت ‪3‬‬ ‫رہ‬ ‫‪2.8‬‬ ‫‪7‬‬
‫ااور‬ ‫ںا‬ ‫‪45‬‬ ‫ل ا ت‬ ‫‪ 2023‬دورا ن‬
‫۔‬ ‫‪7.7‬‬
‫اور‬ ‫‪27.4‬‬ ‫‪23‬‬ ‫ا‬‫ا‬ ‫)‪ 31.4 (CPI‬ا‬ ‫ا ا‬ ‫ل د‬

‫ا۔ ‪23‬‬ ‫د اس ‪ 2‬ا‬ ‫ا۔‬ ‫‪ 23.2 22‬ا‬
‫اب‬ ‫ا ا‬ ‫د ا‬ ‫۔ ‪CPI‬‬ ‫ااور ‪1.2 22‬‬ ‫‪ 1.7‬ا‬
‫ن‬ ‫و تاور )‪ ،( 87.4‬وآرا اور‬ ‫وا‬ ‫ا ڈآ )‪،( 38.4‬ا‬
‫۔ا‬ ‫)‪( 29.7‬اور ا رٹ )‪( 31.2‬‬ ‫)‪ ،( 39.3‬ؤ ‪ ، ، ،‬اورا‬
‫ى او ‪FY'23 ) 22 CPI‬‬ ‫ل‪ 2024‬دو ى‬
‫ز دہ‬ ‫ا ر ‪25.9‬‬ ‫۔آ ا ا‬ ‫وا‬ ‫ى‬ ‫‪( 29‬‬
‫۔‬
‫رہ ‪ 935‬ا ڈا ر رڈ‬ ‫اؤ‬ ‫دو ں‬ ‫رى ل‬ ‫اہ‬ ‫ا ر‬

‫ا ‪23‬‬ ‫ر ۔ ‪،‬‬ ‫رے‬ ‫ل ا ت دورا ن‪ 2.03‬ا ڈا‬
‫ا ‪ 22‬دورا ن ل وا ‪ 5.3‬ا ڈا‬ ‫تزر‬ ‫دورا ن ون‬
‫رروا‬ ‫اورا‬ ‫و‬ ‫۔‬ ‫د‬ ‫‪ 4.1‬ا ڈا‬
‫‪PKR 307/USD‬‬ ‫د ‪5 ،‬‬ ‫ط‬ ‫‪USD PKR‬‬
‫ل‪24‬‬ ‫‪ PKR 278/USD‬آ ۔ا‬ ‫‪ 13‬ا‬
‫در نر ۔انا اد‬ ‫‪1.5‬‬ ‫‪0.5‬‬ ‫ڈى‬ ‫رہ ل‪0.7 23‬‬ ‫اؤ‬
‫۔‬ ‫رہ ڈى ‪4.7‬‬ ‫ا‬ ‫ں ىد‬ ‫ل‪22‬‬

‫ارے‬
‫‘‘( ‪ 2023 30‬ا م ہ‬ ‫) ”‪’’ ”FBL‬دى‬ ‫‪،‬‬ ‫ز‬ ‫رڈ آفڈا‬

‫۔‬ ‫ا ر ت‬ ‫ارے‬ ‫رى‬ ‫آڈٹ ہ‬ ‫اور‪ 9‬ہ‬
‫‪:‬‬ ‫و‬
‫ن‬ ‫آ اوراس‬ ‫ر‬ ‫‪ FBL‬م ن ‪ 3‬ا ‪ 1994‬ا‬

‫رو رى ادارے‪،‬‬ ‫در‬ ‫اور‬ ‫م ت ر ‪،‬‬ ‫درج ۔ ‪ FBL‬ر‬ ‫ا كا‬
‫۔‬ ‫ت ا و ر‬ ‫‪،‬ا ى اور ر ر ا‬
‫آف ن‬ ‫رى ‪ 2023‬ا‬ ‫اور‬ ‫وا‬ ‫‪31‬د ‪ 2022‬ا‬

‫وں ‪700‬‬ ‫‪270‬‬ ‫آ ز ۔‬ ‫آ‬ ‫رى‬ ‫رى دہ ا‬
‫۔‬ ‫ر‬ ‫ت ا‬ ‫ا ں‬
‫ى‬ ‫‪،‬‬ ‫ذر ر‬ ‫ى آف‬ ‫ادارہ‬ ‫) ‪ B.S.C.‬زڈ(‪،‬ا‬ ‫ا ر‬

‫۔ا ر‬ ‫وا ‪(66.78% :2022) 66.78%‬‬ ‫ا‬ ‫‪،‬‬
‫)‪(DMIT‬ا ر‬ ‫ذ ادارہ دا را لا‬ ‫‪B.S.C.‬‬ ‫) ‪ B.S.C.‬زڈ(ا ر‬
‫س‬ ‫ے ذر دو‬ ‫۔ ‪DMIT‬‬ ‫وپ‬ ‫اور‬ ‫‪B.S.C.‬‬
‫۔‬ ‫د‬ ‫رو رى اُ ر ا مد‬ ‫ںاورروا ت‬ ‫ا ‪،‬ا‬ ‫ا‬ ‫ا‬
‫دى ر ل‪:‬‬ ‫ا‬ ‫زہ‬
‫ا ا‬ ‫ر اور‪2023‬‬ ‫زوں ت‬ ‫دى‬ ‫ا‬ ‫دہ‬

‫ى ت‪،‬‬ ‫ن‪،‬‬ ‫‪،‬‬ ‫‪،‬اسر ر‬ ‫ر ۔‬ ‫آ‬
‫‪،‬‬ ‫)آ ا ا (‬ ‫۔ ا ا‬ ‫ت‬ ‫ر ل‬ ‫رى ا‬
‫ا لا اور‬ ‫۔‬ ‫ر‬ ‫ل‪2.9‬‬ ‫ح اس ل‪ 3‬اورا‬
‫روى ۔ا‬ ‫ں ا‬ ‫‪،‬‬ ‫ز دہ ا ر‬ ‫ى‬ ‫ں‬
‫‪،‬‬ ‫ں ‪ 4.7‬ا‬ ‫ا اور‬ ‫‪2023‬‬ ‫آؤٹ‬ ‫ڈو‬

Condensed Interim Unconsolidated Statement of Financial Position
As at September 30, 2023
Un-audited Audited
Note September 30, December 31,
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
ASSETS
Cash and balances with treasury banks 9 78,907,509 56,130,549

Balances with other banks 10 759,898 2,785,035
Due from financial institutions 11 - 9,815,098
Investments - net 12 550,428,614 469,451,195
Islamic financing and related assets - net 13 490,829,384 454,260,608
Fixed assets 14 38,106,654 35,034,233
Intangible assets 15 2,233,151 1,984,841
Deferred tax assets 20 39,505 -
Other assets - net 16 88,965,151 44,891,304
1,250,269,866 1,074,352,863
LIABILITIES
Bills payable 17 15,168,857 21,309,950

Due to financial institutions 18 132,894,338 150,134,396
Deposits and other accounts 19 949,566,865 781,570,730
Sub-ordinated sukuk - -
Deferred tax liabilities 20 - 694,025
Other liabilities 21 73,961,353 50,560,351
1,171,591,413 1,004,269,452
NET ASSETS 78,678,453 70,083,411
REPRESENTED BY
Share capital 15,176,965 15,176,965

Reserves 14,026,212 11,675,968
Surplus on revaluation of assets - net 22 10,186,337 10,648,814
Unappropriated profit 39,288,939 32,581,664
78,678,453 70,083,411
CONTINGENCIES AND COMMITMENTS 23
The annexed notes 1 to 41 form an integral part of these condensed interim unconsolidated financial statements.
PRESIDENT & CEO CHIEF FINANCIAL OFFICER CHAIRMAN DIRECTOR DIRECTOR

Condensed Interim Unconsolidated Profit and Loss Account (Un-audited)
For the quarter and nine months ended September 30, 2023
Quarter ended Nine months ended

September 30, September 30, September 30, September 30,
Note 2023 2022 2023 2022
-------------------------------- Rupees '000 --------------------------------
Profit / return earned on Islamic financing and

related assets, investments and placements 25 51,250,633 29,766,149 133,354,544 70,579,959
Profit / return on deposits and other dues expensed 26 32,838,975 19,063,746 84,211,318 43,641,528
Net profit / return 18,411,658 10,702,403 49,143,226 26,938,431
OTHER INCOME
Fee and commission income 27 2,230,064 1,634,320 6,389,397 4,863,694

Dividend income 31,227 69,431 238,476 416,991
Foreign exchange income 454,793 813,647 2,126,468 2,242,692
Loss / income from derivatives (143,762) 77,031 (27,420) 126,929
Loss on securities 28 (390,658) (446,424) (1,992,260) (1,217,069)
Other income 29 63,355 58,303 190,156 197,571
2,245,019 2,206,308 6,924,817 6,630,808
Total income 20,656,677 12,908,711 56,068,043 33,569,239
OTHER EXPENSES
Operating expenses 30 9,790,980 6,743,941 27,482,844 18,951,279

Workers Welfare Fund 195,733 133,138 531,236 312,167
Other charges 31 1,586 12,672 4,146 17,386
Total other expenses 9,988,299 6,889,751 28,018,226 19,280,832
Profit before provisions 10,668,378 6,018,960 28,049,817 14,288,407
Provisions and write-offs - net 32 1,612,187 (330,072) 3,937,291 (735,729)
Extra ordinary / unusual items - - - -
PROFIT BEFORE TAXATION 9,056,191 6,349,032 24,112,526 15,024,136
Taxation 33 4,537,746 3,069,835 12,068,824 7,363,167
PROFIT AFTER TAXATION 4,518,445 3,279,197 12,043,702 7,660,969
---------------------------------- Rupees ----------------------------------
Basic / diluted earnings per share 34 2.98 2.16 7.94 5.05

Condensed Interim Unconsolidated Statement of Comprehensive Income (Un-audited)

2023 2022 2023 2022
-------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------------------------
Profit after taxation for the period 4,518,445 3,279,197 12,043,702 7,660,969
Other comprehensive income / (loss)
Items that may be reclassified to the profit and

loss account in subsequent periods:
- Movement in surplus on revaluation of

investments - net of tax 327,992 (312,880) 193,984 (1,328,895)
Total comprehensive income 4,846,437 2,966,317 12,237,686 6,332,074

Condensed Interim Unconsolidated Statement Of Changes In Equity
For the nine months ended September 30, 2023
Reserves Surplus / (deficit)

Capital reserves on revaluation of
Non-distri-
butable Reserve
Unappro-
Share capital arising
Statutory Fixed assets / priated Total
capital Share reserve on Total
reserve Investments non-banking Total profit
premium (NCR) - amal-
assets
gain on gamation
bargain
purchase
----------------------------------------------------------------------------------------------------- Rupees '000 -----------------------------------------------------------------------------------------------------
Balance as at January 1, 2022 (Audited) 15,176,965 10,131 325,418 23,952 12,253,682 12,613,183 111,599 6,949,984 7,061,583 30,971,591 65,823,322
Profit after taxation for the nine months ended

September 30, 2022 - - - - - - - - - 7,660,969 7,660,969
Other comprehensive loss - net of tax - - - - - - (1,328,895) - (1,328,895) - (1,328,895)
Total comprehensive (loss) / income - - - - - - (1,328,895) - (1,328,895) 7,660,969 6,332,074
Transfer to statutory reserve - - - - 1,532,194 1,532,194 - - - (1,532,194) -
Transaction with owners, recorded directly in equity

Final cash dividend declared on February 23, 2022
at Rs. 1 per share - - - - - - - - - (1,517,100) (1,517,100)
1st Interim cash dividend declared on August 25, 2022

at Rs 0.5 per share - - - - - - - - - (758,848) (758,848)
Transfer from surplus on revaluation of fixed

assets to unappropriated profit - net of tax - - - - - - - (78,069) (78,069) 78,069 -
Amortisation of intangible assets - customer

relationship - net of tax - - (56,445) - - (56,445) - - - - (56,445)
Balance as at September 30, 2022 (Un-audited) 15,176,965 10,131 268,973 23,952 13,785,876 14,088,932 (1,217,296) 6,871,915 5,654,619 34,902,487 69,823,003
Profit after taxation for the period from

October 1, 2022 to December 31, 2022 - - - - - - - - - 3,572,199 3,572,199
Other comprehensive (loss) / income - net of tax - - - - - - (628,316) 5,646,688 5,018,372 28,872 5,047,244
Total comprehensive (loss) / income - - - - - - (628,316) 5,646,688 5,018,372 3,601,071 8,619,443
Transfer from statutory reserve - - - - (3,115,700) (3,115,700) - - - 3,115,700 -
Transfer to statutory reserve - - - - 714,440 714,440 - - - (714,440) -

assets to unappropriated profit - net of tax - - - - - - - (19,200) (19,200) 19,200 -

assets on disposal - net of tax - - - - - - - (4,977) (4,977) 4,977 -


2nd Interim cash dividend declared on October 27, 2022
at Rs 5.5 per share - - - - - - - - - (8,347,331) (8,347,331)
Balance as at December 31, 2022 (Audited) 15,176,965 10,131 257,269 23,952 11,384,616 11,675,968 (1,845,612) 12,494,426 10,648,814 32,581,664 70,083,411
Profit after taxation for the nine months ended

September 30, 2023 - - - - - - - - - 12,043,702 12,043,702
Other comprehensive income - net of tax - - - - - - 193,984 - 193,984 - 193,984
Total comprehensive income - - - - - - 193,984 - 193,984 12,043,702 12,237,686
Transfer to statutory reserve - - - - 2,408,740 2,408,740 - - - (2,408,740) -

Final cash dividend declared on February 23, 2023
at Rs. 1 per share - - - - - - - - - (1,517,697) (1,517,697)

at Rs. 1 per share - - - - - - - - - (1,517,697) (1,517,697)

assets to unappropriated profit - net of tax - - - - - - - (380,810) (380,810) 107,707 (273,103)
Transfer from surplus on revaluation of

non-banking assets - net of tax - - - - - - - (275,651) (275,651) - (275,651)

Balance as at September 30, 2023 (Un-audited) 15,176,965 10,131 198,773 23,952 13,793,356 14,026,212 (1,651,628) 11,837,965 10,186,337 39,288,939 78,678,453

Condensed Interim Unconsolidated Cash Flow Statement (Un-audited)
Note September 30, September 30,

2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 24,112,526 15,024,136
Less: dividend income (238,476) (416,991)
23,874,050 14,607,145
Adjustments:
Depreciation on owned fixed assets 30 1,526,628 1,047,964
Amortisation of intangible assets 30 232,756 137,311
Depreciation on right-of-use assets 30 1,419,272 1,183,721
Depreciation on non-banking assets 30 3,761 3,724
Workers Welfare Fund 531,236 312,167
Provision / (Reversal of provision) against financing- net 32 3,395,755 (374,515)
Provision / (Reversal of provision) for diminution in value of investments - net 32 611,770 (129,046)
Provision / (Reversal of provision) against other assets - net 32 2,326 (30,335)
Provision / (Reversal of provision) against off balance sheet obligations - net 32 202,460 (19,373)
Unrealised loss / (gain) on securities - held for trading - net 28 - (9,180)
Gain on sale of fixed assets - net 29 (14,446) (26,413)
Charge for defined benefit plan 198,675 177,570
Income from derivative contracts - net 27,420 (126,929)
Profit / return expensed - lease liability against right-of-use assets 26 1,131,541 897,974
Bad debts written off directly 32 44,462 101,252
9,313,616 3,145,892
33,187,666 17,753,037
(Increase) / decrease in operating assets
Due from financial institutions 9,815,098 -
Held-for-trading securities - 12,130,105
Financing (40,008,993) (71,135,120)
Others assets (excluding advance taxation) (44,785,572) (32,410,836)
(74,979,467) (91,415,851)
Increase / (decrease) in operating liabilities
Bills payable (6,141,093) (2,446,707)
Due to financial institutions (17,625,783) 68,830,250
Deposits 167,996,135 80,938,778
Other liabilities (excluding current taxation) 21,947,243 12,707,471
166,176,502 160,029,792
Income tax paid (13,081,472) (5,578,208)
Contribution to gratuity fund (198,675) (177,570)
Net cash generated from operating activities 111,104,554 80,611,200
CASH FLOWS FROM INVESTING ACTIVITIES

Net investment in available-for-sale securities (78,915,428) (69,888,145)
Net investment in associates (218,338) (72,223)
Net (investment) / divestment in held-to-maturity securities (2,455,995) 959,116
Dividends received 227,187 373,788
Investment in operating fixed assets (4,194,497) (2,480,284)
Investment in intangible assets (542,666) (257,207)
Proceeds from sale of fixed assets 52,814 29,584
Net cash used in investing activities (86,046,923) (71,335,371)
CASH FLOWS FROM FINANCING ACTIVITIES

Payment of lease liability against right-of-use assets (1,713,067) (2,241,863)
Dividend paid (2,978,466) (1,031,236)
Net cash used in financing activities (4,691,533) (3,273,099)
Increase in cash and cash equivalents during the period 20,366,098 6,002,730
Cash and cash equivalents at the beginning of the period 57,253,408 59,488,711
Cash and cash equivalents at the end of the period 77,619,506 65,491,441

Notes to and forming part of the Condensed Interim Unconsolidated Financial Statements (Un-audited)
1 STATUS AND NATURE OF BUSINESS
1.1 Faysal Bank Limited (the Bank) was incorporated in Pakistan on October 3, 1994 as a public limited company
under the provisions of the repealed Companies Ordinance, 1984 (now the Companies Act, 2017). Its shares
are listed on the Pakistan Stock Exchange Limited. The Bank is engaged in Shariah compliant modern
Corporate, Commercial and Consumer banking activities. The Bank is operating through 700 Islamic branches
(December 31, 2022: 700 branches) including 2 sub-branches (December 31, 2022: 2).
The registered office of the Bank is located at Faysal House, ST-02, Shahra-e-Faisal, Karachi.
Ithmaar Bank B.S.C (closed), a fully owned subsidiary of Ithmaar Holdings B.S.C is the parent company of the
Bank, holding directly and indirectly 66.78% (December 31, 2022: 66.78%) of the shareholding of the Bank.
Dar Al-Maal Al-Islami Trust (DMIT), (ultimate parent of the Bank) is the holding company of Ithmaar Holdings
B.S.C.
1.2 The State Bank of Pakistan has issued the Islamic Banking License No. BL(i) - 01 (2022) dated December 30,
2022 in the Bank's name, effective from January 1, 2023.
1.3 The Pakistan Credit Rating Agency Limited (PACRA) and VIS Credit Rating Company Limited have determined
the Bank's long-term rating as 'AA' (December 31, 2022: 'AA') and the short term rating as 'A1+' (December
31, 2022: 'A1+') on June 23, 2023 and June 27, 2023 respectively.
2 BASIS OF PRESENTATION
2.1 In accordance with the directives of the Federal Government regarding the shifting of the banking system to
Islamic modes, the State Bank of Pakistan (SBP) has issued various circulars from time to time. Permissible
forms of trade related modes of financing include purchase of goods by banks from their customers and
immediate resale to them at appropriate profit in price on deferred payment basis.
The purchases and sales arising under these arrangements are not reflected in these condensed interim
unconsolidated financial statements as such but are restricted to the amount of facility actually utilized and the
appropriate portion of profit thereon. The income on such financing is recognised in accordance with the
principles of Islamic Shariah. However, income, if any, received which does not comply with the principles of
Islamic Shariah is recognised as charity payable if so directed by the Resident Shariah Board Member
(RSBM) of the Bank.
2.2 The Bank has a controlling interest in Faysal Asset Management Limited (FAML) and is required to prepare the
consolidated financial statements under the provisions of the Companies Act, 2017. These condensed interim
financial statements represent the unconsolidated results of the Bank and a separate set of condensed interim
consolidated financial statements are also being presented by the Bank.
3 STATEMENT OF COMPLIANCE
3.1 These condensed interim unconsolidated financial statements have been prepared in accordance with the
accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting
and reporting standards applicable in Pakistan for interim financial reporting comprise of:
- International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International
Accounting Standards Board (IASB) as 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 requirements of IAS 34, the requirements of the
Banking Companies Ordinance, 1962, the Companies Act, 2017 and the said directives shall prevail.
3.2 As per the directive of the SBP through its letter BPRD (R&P-02)/625-99/2011/3744 dated March 28, 2011,
gain arising on bargain purchase of Pakistan operations of Royal Bank of Scotland (ex-RBS Pakistan) was
credited directly into equity as Non-distributable Capital Reserve (NCR). The SBP allowed the Bank to adjust
the amortisation of intangible assets against the portion of reserve which arose on account of such assets
identified as a result of such acquisition. Accordingly, during the period ended September 30, 2023, the Bank
has adjusted amortisation of intangible assets net of tax amounting to Rs. 58.496 million (period ended
September 30, 2022: Rs. 56.445 million) from the NCR.

3.3 These condensed interim unconsolidated financial statements do not include all the information and
disclosures required in the annual audited unconsolidated financial statements, and are limited based on the
format prescribed by the State Bank of Pakistan through BPRD Circular Letter No. 05 dated March 22, 2019
and IAS 34, and should be read in conjunction with the annual unconsolidated financial statements for the
year ended December 31, 2022.
3.4 Standards, interpretations of and amendments to the published accounting and reporting standards
that are effective in the current period
There are certain new and amended standards, interpretations and amendments that are mandatory for the
Bank's accounting periods beginning on January 1, 2023 but are considered not to be relevant or do not have
any significant effect on the Bank's operations and are therefore not detailed in these condensed interim
unconsolidated financial statements.
that are not yet effective
The following revised standards, amendments and interpretations with respect to the accounting and reporting
standards would be effective from the dates mentioned below against the respective standards, amendments
or interpretations:
Effective date (annual periods

Standards, interpretations or amendments beginning on or after)
- IFRS 9 - 'Financial instruments' January 1, 2024*

- Amendment to IFRS 16 - Leases on sale and leaseback January 1, 2024
- Amendment to IAS 1- Non current liabilities with covenants January 1, 2024
The management is in the process of assessing the impact of these standards and amendments on the
condensed interim unconsolidated financial statements of the Bank.
* As directed by SBP via BPRD Circular No. 7 of 2023 dated April 13, 2023, IFRS 9 Financial Instruments
application has been deferred and will be effective from January 1, 2024, for banks. SBP has issued the final
instructions on IFRS 9 (Application Instructions) via BPRD Circular no. 3 of 2022 dated July 5, 2022 for
ensuring smooth and consistent implementation of the standard across banks. Accordingly, the Bank
disclosed the impact of the application of IFRS 9 in Pakistan in its financial statements as at December 31,
2022.
The actual impact of adopting IFRS 9 on the Bank’s financial statements in the year 2024 may not be
accurately estimated at this stage because it will be dependent on the financial instruments that the Bank
would hold during next year and economic conditions at that time as well as accounting elections and
judgements that it will make in future.
3.6 The SBP vide BPRD Circular No. 2 of 2023 dated February 9, 2023, has specified the new reporting format for
financial statements of Banking Companies. The new format has revised the disclosure requirements and will
become applicable for the financial statements of the Bank from the first quarter of the year 2024.
3.7 As required under SBP Letter No. BPRD/LD-01/850/28853/2022-13054, the details of the net conventional
funded portfolio as at September 30, 2023 are as follows:
Rupees in '000
Assets Note
Investments 1,565,361
Financing 1,912,970
Liabilities
Due to financial institutions 345
Deposits and other accounts 5,601,818
Derivatives 24.1 1,864,062

4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied in the preparation of these condensed interim unconsolidated financial
statements are the same as applied in the preparation of the annual unconsolidated financial statements of the
Bank for the year ended December 31, 2022, except for the change as detailed below :
Associates are all entities over which the Bank has significant influence, but not control. Certain mutual funds
are managed by the Subsidiary Company of the Bank and hence, the Bank has significant influence over such
funds and therefore, investment in these mutual funds are considered as investment in associates in these
condensed interim unconsolidated financial statements. This change is applied prospectively as the impact is
not considered to be material.
5 BASIS OF MEASUREMENT
These condensed interim unconsolidated financial statements have been prepared under the historical cost
convention except for certain fixed assets and non-banking assets acquired in satisfaction of claims which
have been carried at revalued amounts, certain investments and derivative contracts which have been
marked-to-market and are carried at fair value, obligations in respect of staff retirement benefits and lease
liabilities which have been carried at present value and right-of-use assets which are initially measured at an
amount equal to the corresponding lease liabilities (adjusted for any lease payments and costs) and
depreciated over the respective lease terms.
6 FUNCTIONAL AND PRESENTATION CURRENCY
6.1 Items included in these condensed interim unconsolidated financial statements are measured using the
currency of the primary economic environment in which the Bank operates. These condensed interim
unconsolidated financial statements are presented in Pakistani Rupees, which is the Bank's functional and
presentation currency.
6.2 Figures have been rounded-off to the nearest thousand of rupees unless otherwise stated.
7 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
The basis for accounting estimates adopted in the preparation of these condensed interim unconsolidated
financial statements is the same as that applied in the preparation of the annual unconsolidated financial
statements of the Bank for the year ended December 31, 2022, except for the change in impairment for equity
securities classified as available-for-sale for which impairment criteria for significant decline has been
changed. The impact of change is not material.
8 FINANCIAL RISK MANAGEMENT
The financial risk management objectives and policies adopted by the Bank are consistent with those
disclosed in the annual audited unconsolidated financial statements for the year ended December 31, 2022.
Un-audited Audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
9 CASH AND BALANCES WITH TREASURY BANKS
In hand
- local currency 18,162,036 17,453,357
- foreign currencies 2,843,057 881,183
21,005,093 18,334,540
With State Bank of Pakistan in
- local currency current accounts 44,878,966 32,768,340
- foreign currency current accounts 2,788,184 2,536,026
- foreign currency deposit accounts 4,558,634 2,280,616
52,225,784 37,584,982
With National Bank of Pakistan in
- local currency current accounts 5,673,427 206,502
Prize bonds 9.1 3,205 4,525

78,907,509 56,130,549
9.1 These represent the national prize bonds received from customers for onward surrendering to SBP. The Bank
as a matter of Shariah principle, does not deal in prize bonds.

Un-audited Audited
September 30, December 31,
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
10 BALANCES WITH OTHER BANKS
In Pakistan
- in current accounts 9,727 20,007
Outside Pakistan
- in current accounts 750,171 2,683,513
- in deposit accounts - 81,515
759,898 2,785,035
11 DUE FROM FINANCIAL INSTITUTIONS
Musharaka placement - 4,000,000

Repurchase agreement lendings (reverse repo) - 5,815,098
- 9,815,098
12 INVESTMENTS
12.1 Investments by type:
Un-audited Audited
Note September 30, 2023 December 31, 2022
Cost / Provision Cost / Provision
Surplus / Carrying Surplus / Carrying
Amortised for Amortised for
(deficit) value (deficit) value
cost diminution cost diminution
---------------------------------------------------------------- Rupees '000 ----------------------------------------------------------------------------
Available-for-sale securities
Federal Government securities 12.2 492,743,795 - (6,072,512) 486,671,283 406,535,788 - (4,225,759) 402,310,029
Shares 5,006,458 (1,958,622) 468,975 3,516,811 12,212,313 (1,297,552) (1,392,156) 9,522,605
Non-Government debt securities 47,917,827 (519,291) 2,365,050 49,763,586 48,004,551 (519,291) 2,380,000 49,865,260
545,668,080 (2,477,913) (3,238,487) 539,951,680 466,752,652 (1,816,843) (3,237,915) 461,697,894
Held-to-maturity securities
Non-Government debt securities 12.4 8,785,588 (1,418,207) - 7,367,381 6,329,593 (1,467,507) - 4,862,086
8,785,588 (1,418,207) - 7,367,381 6,329,593 (1,467,507) - 4,862,086
Associates * 12.5
Faysal Islamic Savings Growth Fund 205,151 - - 205,151 621,343 - - 621,343
Faysal Islamic Stock Fund 114,509 - - 114,509 114,509 - - 114,509
Faysal Halal Amdani Fund 1,650,000 - - 1,650,000 - - - -
Faysal Savings Growth Fund - - - - 693,353 - - 693,353
Faysal Stock Fund - - - - 322,117 - - 322,117
1,969,660 - - 1,969,660 1,751,322 - - 1,751,322
Subsidiary *
Faysal Asset Management
Limited 12.5 1,139,893 - - 1,139,893 1,139,893 - - 1,139,893
Total Investments - net 557,563,221 (3,896,120) (3,238,487) 550,428,614 475,973,460 (3,284,350) (3,237,915) 469,451,195
* related parties
Un-audited Audited
2023 2022
12.2 Investments given as collateral - market value
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
Federal Government Securities
- Pakistan Investment Bonds - 5,307,116
- Ijarah Sukuks 40,305,450 29,866,500
40,305,450 35,173,616

Un-audited Audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
12.3 Provision for diminution in value of investments
12.3.1 Opening balance 3,284,350 3,451,987
Charge / (reversals)
Charge for the period / year 1,811,871 7,067
Reversals for the period / year (49,300) (85,824)
Reversals on disposals for the period / year (1,150,801) (88,880)
611,770 (167,637)
Closing balance 3,896,120 3,284,350
12.3.2 Particulars of provision against debt securities

Un-audited Audited
September 30, 2023 December 31, 2022
Non- Non-
performing Provision performing Provision
Category of classification investments investments
------------------------------ Rupees '000 ------------------------------
Domestic
- Loss 1,937,498 1,937,498 1,986,798 1,986,798
12.4 The market value of securities classified as held-to-maturity as at September 30, 2023 amounted to Rs. 7,364
million (December 31, 2022: Rs. 4,862 million).
12.5 Investment in subsidiary and associates

As at September 30, 2023 For the nine months ended September 30, 2023
Total
Country of
% Revenue / comprehen-
incorpora- Assets Liabilities Profit / (loss)
Holding (loss) sive income /
tion
(loss)
Note ------------------------------------------------------------------------ Rupees '000 -----------------------------------------------------------
Associates
Faysal Islamic Savings Growth Fund Pakistan 8.72 2,471,927 19,098 277,590 252,077 252,077
Faysal Islamic Stock Fund Pakistan 19.51 492,870 14,374 20,829 4,025 4,025
Faysal Halal Amdani Fund Pakistan 3.99 41,578,496 199,760 5,606,378 5,304,178 5,304,178
Subsidiary
Limited 12.5.1 Pakistan 99.99 1,929,453 286,274 745,040 282,784 282,784
As at December 31, 2022 For the nine months ended September 30, 2022
Total
Country of
% Profit / comprehen-
incorporati Assets Liabilities Revenue
Holding (loss) sive income /
on
(loss)
------------------------------------------------------------------------ Rupees '000 -----------------------------------------------------------
Associates
Faysal Islamic Savings Growth Fund Pakistan 24.1 2,646,076 24,630 255,961 223,640 223,640
Faysal Islamic Stock Fund Pakistan 20.8 469,274 5,520 (53,312) (74,143) (74,143)
Faysal Savings Growth Fund Pakistan 29 2,515,594 33,362 261,411 216,447 216,447
Faysal Stock Fund Pakistan 31.6 876,891 41,190 (234,354) (297,641) (297,641)
Subsidiary
Limited Pakistan 99.99 1,629,722 269,328 536,182 213,860 213,860

12.5.1 Faysal Asset Management Limited (the Company) was incorporated in Pakistan under the provisions of the
repealed Companies Ordinance, 1984 (now Companies Act, 2017) on August 6, 2003 as an unlisted public
limited company. The Company commenced its operations on November 14, 2003. The Company is a Non-
Banking Finance Company (NBFC). The Company has obtained license to carry out asset management and
investment advisory services under the requirements of Non-Banking Finance Companies (Establishment and
Regulation) Rules, 2003 and the Non-Banking Finance Companies and Notified Entities Regulations, 2008.
13 ISLAMIC FINANCING AND RELATED ASSETS - NET
Note Performing Non-performing Total

Un-audited Audited Un-audited Audited Un-audited Audited
September 30, December 31, September 30, December 31, September 30, December 31,
2023 2022 2023 2022 2023 2022
--------------------------------------------------------------- Rupees '000 ---------------------------------------------------------------
Murabaha financing and related assets
Murabaha financing 13.1 59,235,387 10,718,692 133,542 119,278 59,368,929 10,837,970
Advance against Murabaha financing 788,704 1,675,896 - - 788,704 1,675,896
Inventory related to Murabaha 719,957 203,694 - - 719,957 203,694
60,744,048 12,598,282 133,542 119,278 60,877,590 12,717,560
Running Musharaka financing
Running Musharaka 130,612,718 119,430,547 543,966 - 131,156,684 119,430,547
Istisna financing and related assets

Istisna 31,900,813 31,800,700 215,750 70,000 32,116,563 31,870,700
Advance against Istisna 11,610,157 20,927,551 133,895 236,295 11,744,052 21,163,846
Inventory related to Istisna 8,711,494 6,205,350 44,271 - 8,755,765 6,205,350
52,222,464 58,933,601 393,916 306,295 52,616,380 59,239,896
Tijarah financing and related assets

Tijarah 1,572,471 2,268,921 5,500 5,500 1,577,971 2,274,421
Advance against Tijarah 230,600 467,445 - - 230,600 467,445
Inventory related to Tijarah 1,020,300 1,346,223 - - 1,020,300 1,346,223
2,823,371 4,082,589 5,500 5,500 2,828,871 4,088,089
Musawamah financing and related assets
Musawamah 14,983,724 143,720 123,776 6,960 15,107,500 150,680
Advance against Musawamah 1,385 - - - 1,385 -
Inventory related to Musawamah 590 3,980 - - 590 3,980
14,985,699 147,700 123,776 6,960 15,109,475 154,660
Salam financing and related assets
Salam 100,000 100,000 1,200 1,200 101,200 101,200
Advance against Salam 117,206 83,236 - - 117,206 83,236
217,206 183,236 1,200 1,200 218,406 184,436
Ijarah financing and related assets
Fixed assets Ijarah financing - net - 32,109 - - - 32,109
- 32,109 - - - 32,109
Diminishing Musharaka financing and
related assets
Diminishing Musharaka 198,533,852 208,760,418 5,355,739 4,374,326 203,889,591 213,134,744
Advanced against Diminishing Musharaka 19,887,126 15,556,470 - - 19,887,126 15,556,470
218,420,978 224,316,888 5,355,739 4,374,326 223,776,717 228,691,214
Wakala Istithmar financing and
related assets
Wakala Istithmar 6,302,669 - - - 6,302,669 -
6,302,669 - - - 6,302,669 -
Tawwaruq 1,069,810 13,167,553 41,107 38,717 1,110,917 13,206,270

Advance against Islamic export refinance 2,631,459 3,419,522 181,590 223,152 2,813,049 3,642,674
Musharaka 32,605 82,618 7,762 8,288 40,367 90,906
Bai salam 49,697 99,342 - - 49,697 99,342
Islamic financing and related assets - Gross 490,112,724 436,493,987 6,788,098 5,083,716 496,900,822 441,577,703
Other financing 746,207 15,397,264 15,948,254 16,614,667 16,694,461 32,011,931
490,858,931 451,891,251 22,736,352 21,698,383 513,595,283 473,589,634
Less: provision against financing 13.4

- Specific - - (18,613,228) (18,557,417) (18,613,228) (18,557,417)
- General (4,152,671) (771,609) - - (4,152,671) (771,609)
(4,152,671) (771,609) (18,613,228) (18,557,417) (22,765,899) (19,329,026)
Financing - net of provision 486,706,260 451,119,642 4,123,124 3,140,966 490,829,384 454,260,608

Un-audited Audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
13.1 Murabaha receivable - gross 13.1.2 60,877,590 11,529,227

Less: Deferred murabaha income 13.1.3 (365,588) (350,063)
Profit receivable shown in other assets (1,143,073) (341,194)
Murabaha financing 13.1.1 59,368,929 10,837,970
13.1.1 The movement in Murabaha financing during the period / year is as follows:
Opening balance 10,837,970 31,630,824
Sales during the period / year 178,111,210 111,886,384
Adjusted during the period / year (129,580,251) (132,679,238)
Closing balance 59,368,929 10,837,970
13.1.2 Murabaha sale price 60,877,590 11,529,227

Murabaha purchase price (59,368,929) (10,837,970)
1,508,661 691,257
13.1.3 Deferred murabaha income

Opening balance 350,063 275,779
Arising during the period / year 4,100,082 4,602,165
Less: recognised during the period / year (4,084,557) (4,527,881)
Closing balance 365,588 350,063
13.2 Particulars of Islamic financing and related assets - net
- in local currency 512,914,239 473,053,505

- in foreign currencies 681,044 536,129
513,595,283 473,589,634
13.3 Islamic financing and related asset - net includes Rs. 22,736 million (December 31, 2022: Rs. 21,698 million)
which have been placed under non-performing status as detailed below:
Un-audited Audited
Non- Non-
Category of classification
loans loans
---------------------------------------- Rupees '000 ----------------------------------------
Domestic
- Other assets especially mentioned 369,143 - 204,426 70
- Substandard 1,637,456 89,150 504,838 82,646
- Doubtful 774,901 186,978 858,706 242,963
- Loss 19,954,852 18,337,100 20,130,413 18,231,738
Total 22,736,352 18,613,228 21,698,383 18,557,417

13.4 Particulars of provision against Islamic financing and related assets
Un-audited Audited
Specific General Total Specific General Total
----------------------------------------------- Rupees '000 -----------------------------------------------
Opening balance 18,557,417 771,609 19,329,026 19,544,542 945,573 20,490,115
Exchange adjustments 144,914 - 144,914 117,020 - 117,020

Charge for the period / year 983,598 3,381,062 4,364,660 1,085,432 - 1,085,432
Reversals during the period / year (968,905) - (968,905) (1,368,953) (173,964) (1,542,917)
14,693 3,381,062 3,395,755 (283,521) (173,964) (457,485)
Amounts written off (103,796) - (103,796) (820,624) - (820,624)
Closing balance 18,613,228 4,152,671 22,765,899 18,557,417 771,609 19,329,026
13.4.1 The Bank maintains general provision in accordance with the applicable requirements of the Prudential
Regulations for Consumer Financing and House Financing issued by the SBP.
The Bank in addition to the requirements of Prudential Regulations has maintained a general provision of
Rs. 3,300 million (December 31, 2022: Rs. Nil) against financing made on prudent basis, in view of prevailing
economic conditions.
13.4.2 As allowed by the SBP, the Bank has availed benefit of forced sale value (FSV) of collaterals held as security
of Rs. 1,879.886 million (December 31, 2022: Rs. 1,862.991million) relating to financing while determining the
provisioning requirement against non-performing financing as at September 30, 2023. The additional profit
arising from availing the FSV benefit (net of tax) as at September 30, 2023 which is not available for
distribution as either cash or stock dividend to shareholders approximately amounted to Rs. 958.742 million
(December 31, 2022: Rs. 950.125 million).
13.4.3 Although the Bank has made provision against its non-performing portfolio as per the category of
classification of the loans, the Bank still holds enforceable collateral against certain non-performing loans in
the event of recovery through litigation. These securities comprise of charge against various tangible assets of
the borrower including land, building and machinery, stock in trade, etc.
Un-audited Audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
14 FIXED ASSETS
Capital work-in-progress 14.1 3,253,822 2,392,116

Property and equipment 34,852,832 32,642,117
38,106,654 35,034,233
14.1 Capital work-in-progress
Civil works 153,856 346,816

Equipment 2,401,379 1,742,100
Furniture and fixture 188,092 220,794
Vehicles 68,429 42,164
Land and building 442,066 40,242
3,253,822 2,392,116

Un-audited
For the nine months ended
September 30, September 30,
2023 2022
----------------------------------------------------------------------------------------------------------------------
14.2 Additions to fixed assets Rupees '000 ------------------------------
The following additions have been made to fixed assets

during the period:
Capital work-in-progress 4,204,798 2,480,284
Property and equipment

Building on leasehold land 173,485 5,332
Electrical, office and computer equipment 1,525,659 525,175
Vehicles 188,203 -
Right-of-use assets - land and building 1,862,206 2,130,252
Leasehold land 132,800 2,568
Civil works 960,920 440,464
5,194,997 3,141,041
Total 9,399,795 5,621,325
14.3 Disposal of fixed assets
The net book value of fixed assets disposed off during the
period is as follows:
Furniture and fixture 14 96

Electrical, office and computer equipment 1,054 912
Vehicles 37,143 1,033
Others 171 1,131
Total 38,382 3,172
Un-audited Audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
15 INTANGIBLE ASSETS
Capital work-in-progress 15.1 732,298 711,373
Computer software 1,111,105 822,123

Customer relationship 389,748 451,345
1,500,853 1,273,468
2,233,151 1,984,841
Computer software 732,298 711,373
Un-audited
2023 2022
----------------------------------------------------------------------------------------------------------------------
15.2 Additions to intangible assets Rupees '000 ------------------------------
The following additions have been made to intangible assets during the period:
Computer software - directly purchased 521,741 125,857

Un-audited Audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
16 OTHER ASSETS
Profit / return accrued in local currency - net of provision 60,723,042 26,608,166

Profit / return accrued in foreign currencies - net of provision 139,909 35,156
Advances, deposits, advance rent and other prepayments 2,182,307 1,243,061
Non-banking assets acquired in satisfaction of claims 812,984 1,041,276
Mark to market gain on forward foreign exchange contracts 311,500 383,842
Acceptances 21 17,547,041 6,930,359
Credit cards and other products fee receivable 843,782 566,289
Receivable from brokers against sale of shares - 268,523
Dividend receivable 86,637 75,348
Receivable from 1Link (Private) Limited 1,784,560 3,302,249
Rent and amenities receivable 161,036 43,456
Rebate receivable - net 319,708 118,625
Defined benefit plan asset 168,825 168,825
Remittances receivable from Western Union 2,091,936 1,668,492
Others 266,735 636,687
87,440,002 43,090,354
Less: provision held against other assets 16.1 (327,580) (325,254)
Other assets - net of provision 87,112,422 42,765,100
Surplus on revaluation of non-banking assets acquired in
satisfaction of claims 22 1,852,729 2,126,204
Other Assets - total 88,965,151 44,891,304
16.1 Provision held against other assets

Receivables from customers 52,799 50,473
Security deposits 22,994 22,994
Others 176,439 176,439
327,580 325,254
16.1.1 Movement in provision held against other assets
Charge for the period / year 2,731 -

Reversals during the period / year (405) (30,336)
2,326 (30,336)
Amounts written off - -
17 BILLS PAYABLE
In Pakistan 15,168,857 21,309,950

Outside Pakistan - -
15,168,857 21,309,950

Un-audited Audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
18 DUE TO FINANCIAL INSTITUTIONS
Secured
To the State Bank of Pakistan (SBP) under:
-Long term financing facility for renewable power energy (RPE) 345 9,502
-Scheme of financing facility for storage of agricultural produce - 5,400
-Islamic export refinance scheme - part I and II 24,551,876 31,795,302
-Refinance scheme for payment of wages and salaries - 885,681
-Islamic financing for renewable energy 6,659,895 6,914,074
-Islamic long term financing facility 9,902,930 12,407,019
-Islamic temporary economic refinance scheme 11,804,982 30,853,102
-Islamic refinance facility for combating COVID-19 19,059,051 232,778
-Islamic refinance facility for storage of agricultural produce 536,495 370,804
-Scheme of Islamic Rupee-based discounting facility under EFS/IERS
facility under EFS/IERS 657,056 547,230
73,172,630 84,020,892
Due to SBP under Open Market Operations (OMO) 39,011,626 29,061,914
Repurchase agreement borrowings - 5,318,855
Due to other financial institutions 3,412,181 1,440,559
Total secured 115,596,437 119,842,220
Unsecured
Overdrawn nostro accounts 2,047,901 1,662,176
Musharaka acceptances 15,250,000 28,630,000
Total unsecured 17,297,901 30,292,176
132,894,338 150,134,396
19 DEPOSITS AND OTHER ACCOUNTS
Un-audited Audited
In local In foreign In local In foreign
Total Total
currency currencies currency currencies
------------------------------------------------------------------------------------------------------ Rupees '000 ----------------------------------------------------------------
Customers
Current deposits 265,780,750 30,549,554 296,330,304 233,289,655 26,500,047 259,789,702
Savings deposits 233,289,864 22,439,300 255,729,164 207,105,501 23,004,040 230,109,541
Term deposits 209,357,303 1,942,436 211,299,739 154,758,216 887,679 155,645,895
Margin deposits 13,281,887 55,937 13,337,824 7,661,317 229,752 7,891,069
721,709,804 54,987,227 776,697,031 602,814,689 50,621,518 653,436,207
Financial institutions
Current deposits 21,862,255 89,863 21,952,118 9,405,616 65,052 9,470,668
Savings deposits 144,877,169 - 144,877,169 118,138,305 - 118,138,305
Term deposits 6,040,547 - 6,040,547 525,550 - 525,550
172,779,971 89,863 172,869,834 128,069,471 65,052 128,134,523
894,489,775 55,077,090 949,566,865 730,884,160 50,686,570 781,570,730

Un-audited Audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
20 DEFERRED TAX ASSETS / (LIABILITIES)
Taxable temporary differences on

- surplus on revaluation of fixed assets (2,126,858) (1,957,237)
- surplus on revaluation of non-banking assets (17,767) (15,591)
- surplus on revaluation of investments 1,586,859 1,392,303
- fair value adjustment relating to net
assets acquired upon amalgamation (190,977) (194,079)
- accelerated tax depreciation (148,043) (39,762)
(896,786) (814,366)
Deductible temporary differences on
- provision for diminution in the value of investments 843,819 (43,998)
- provision against financing, off balance sheet etc. (32,825) 40,380
- provision against other assets 125,297 123,959
936,291 120,341
39,505 (694,025)
21 OTHER LIABILITIES
Return on deposits and other dues:

- payable in local currency 11,812,343 6,735,294
- payable in foreign currencies 24,789 5,357
Unearned commission and income on bills discounted 1,139,562 986,281
Accrued expenses 4,149,728 3,279,114
Acceptances 16 17,547,041 6,930,359
Dividend payable including unclaimed dividends 313,522 256,594
Mark to market loss on forward foreign exchange contracts 3,136,383 46,611
Current taxation (provision less payments) 1,411,354 1,081,615
Charity fund balance 2,077 1,634
Provision against off-balance sheet obligations 21.1 290,160 87,700
Withholding tax payable 422,742 283,547
Federal excise duty payable 93,708 90,817
Payable to brokers against purchase of shares 2,268 1,235,367
Fair value of derivative contracts 24.1 1,864,062 1,507,683
Payable related to credit cards and other products 1,384,614 108,909
Lease liability against right-of-use assets 12,692,394 11,827,762
Funds held as security 306,918 288,573
Payable to 1Link (Private) Limited 447,846 359,297
Takaful payable 57,710 60,888
Clearing and settlement accounts 16,430,022 14,940,611
Others 432,110 446,338
73,961,353 50,560,351
21.1 Provision against off-balance sheet obligations

Charge for the period / year 202,828 3,596
202,460 (17,194)

Un-audited Audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
22 SURPLUS ON REVALUATION OF ASSETS - NET OF TAX
Surplus / (deficit) on revaluation of:

- available for sale securities (3,238,487) (3,237,915)
- fixed assets 12,129,860 12,341,050
- non-banking assets acquired in satisfaction of claims 1,852,729 2,126,204
10,744,102 11,229,339
Deferred tax on surplus / (deficit) on revaluation of:
- available for sale securities 1,586,859 1,392,303
- fixed assets (2,126,857) (1,957,237)
- non-banking assets acquired in satisfaction of claims (17,767) (15,591)
(557,765) (580,525)
10,186,337 10,648,814
23 CONTINGENCIES AND COMMITMENTS
Guarantees 23.1 42,599,382 38,920,372

Commitments 23.2 182,271,179 168,295,114
Other contingent liabilities 23.3 4,122,244 4,122,244
228,992,805 211,337,730
23.1 Guarantees
Financial guarantees 6,039,094 5,725,594

Performance guarantees 9,849,111 12,053,909
Other guarantees 26,711,177 21,140,869
42,599,382 38,920,372
23.2 Commitments
Documentary credits and short-term trade-related transactions

- letters of credit 72,606,680 52,543,910
Commitments in respect of:
- forward foreign exchange contracts 23.2.1 63,764,393 57,184,237
- forward government securities transactions 23.2.2 40,311,150 41,226,248
- derivatives - cross currency and interest rate swaps (notional principal) 23.2.3 & 24 1,846,774 1,510,401
- extending credit (irrevocable) 23.5 2,322,617 15,473,238
Commitments for acquisition of:
- operating fixed assets 944,729 193,455
- intangible assets 474,836 163,625
182,271,179 168,295,114
23.2.1 Commitments in respect of forward foreign exchange contracts
Purchase 52,843,029 50,919,583

Sale 10,921,364 6,264,654
63,764,393 57,184,237
23.2.2 Commitments in respect of forward government securities transactions
Purchase 40,311,150 35,400,890

Sale - 5,825,358
40,311,150 41,226,248
23.2.3 Commitments in respect of derivatives
Sale 24 1,846,774 1,510,401

Un-audited Audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
23.3 Other contingent liabilities
Suit filed by a customer for recovery of alleged losses suffered which

is pending in the Honorable High Court of Sindh. The Bank’s legal
advisors are confident that the Bank has a strong case 2,510,000 2,510,000
Indemnity issued favouring the Honorable High Court in one of the cases 457,543 457,543
Tax liability of gain on bargain purchase on the acquisition of
ex-RBS Pakistan 23.3.1 1,154,701 1,154,701
4,122,244 4,122,244
23.3.1 Income tax assessments of the Bank have been finalised upto the tax year 2022 (accounting year ended
December 31, 2021). Income tax return for tax year 2023 (accounting year ended December 31, 2022) will be
filed by the Bank within stipulated timeline.
The department and the Bank has disagreement on a matter relating to taxability of gain on bargain purchase
on the acquisition of ex-RBS Pakistan. The additional tax liability on the matter amounts to Rs. 1,154.701
million (December 31, 2022: Rs. 1,154.701 million). The Commissioner Inland Revenue (Appeals) [CIR(A)] had
deleted the said additional tax liability, however the income tax department had filed an appeal with the
Appellate Tribunal Inland Revenue (ATIR) against the order of CIR(A). During the current period, the ATIR
passed an order and maintained the decision of the CIR(A) in favour of the Bank that gain on bargain
purchase is not taxable. Subsequently, the department has challenged the order in Honorable High Court of
Sindh. However, the management of the Bank is confident that the matter will be decided in the Bank's favour
and accordingly, no provision has been recorded in these unconsolidated financial statements in respect of
this matter.
23.4 There are certain claims against the Bank not acknowledged as debt amounting to Rs 29,528 million
(December 2022: Rs 29,453 million). These mainly represent counter claims filed by the borrowers for
restricting the Bank from disposal of assets (such as mortgaged / pledged assets kept as security), cases
where the Bank was proforma defendant for defending its interest in the underlying collateral kept by it at the
time of financing, certain cases filed by ex-employees of the Bank for damages sustained by them
consequent to the termination from the Bank's employment and cases for damages towards opportunity
losses suffered by the customers due to non-disbursements of running finance facility as per the agreed
terms. The above also includes an amount of Rs. 25,299 million (December 2022: Rs. 25,299 million) in
respect of a suit filed against the Bank for declaration, recovery of monies, release of securities, rendition of
account and damages.
Based on legal advice and / or internal assessments, the management is confident that the above matters will
be decided in the Bank's favour and accordingly no provision has been made in these condensed interim
unconsolidated financial statements.
23.5 Commitments to extend credits
The Bank makes commitments to extend credit (including to related parties) in the normal course of its
business but these being revocable commitments do not attract any significant penalty or expense if the
facilities are unilaterally withdrawn except for Rs. 2,323 million (December 2022: Rs. 15,473 million) which are
irrevocable in nature.

Un-audited Audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
24 DERIVATIVE INSTRUMENTS
Cross currency swaps (notional principal) 1,846,774 1,510,401
24.1 Product analysis
September 30, 2023 (Un-audited)

Cross currency swaps
Counterparties
Mark to
Notional principal
market loss
------------------ Rupee s '000 ----------------
With banks for
Hedging - -
Market making 232,571 (191,055)
With other entities for

Hedging - -
Market making 1,614,203 (1,673,007)
Total
Hedging - -
Market making 1,846,774 (1,864,062)
December 31, 2022 (Audited)

Counterparties
Mark to
Notional principal
market loss
------------------ Rupee s '000 ----------------
With banks for
Hedging - -
Market making 209,709 (281,984)

Hedging - -
Market making 1,300,692 (1,225,699)
Total
Hedging - -
Market making 1,510,401 (1,507,683)
Un-audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
25 PROFIT / RETURN EARNED
On:
Financing 66,121,543 36,304,923
Investments 66,153,785 32,727,265
Due from financial institutions 1,065,728 1,293,672
Balances with banks 6,623 1,157
Securities purchased under resale agreements 6,865 252,942
133,354,544 70,579,959

Un-audited
2023 2022
26----------------------------------------------------------------------------------------------------------------------
PROFIT / RETURN EXPENSED Rupees '000 ------------------------------
On:
Deposits 59,707,194 30,036,118
Securities sold under repurchase agreements 143,381 4,881,490
Shariah Compliant Open Market Operations and Ceiling facility from SBP 10,671,451 2,133,612
Other short term borrowings 19,151 311,043
Due to SBP 3,800,325 1,286,540
Lease liability against right-of-use assets 1,131,541 897,974
Cost of foreign currency swaps against foreign currency deposits / dues 3,754,857 2,980,981
84,211,318 43,641,528
27 FEE AND COMMISSION INCOME
Branch banking customer fees 812,808 706,160

Consumer finance related fees 465,459 428,356
Card related fees 3,166,063 2,013,192
Credit related fees 29,904 8,218
Investment banking fees 188,740 233,971
Commission on trade 489,739 463,306
Commission on guarantees 150,962 131,314
Commission on cash management 113,163 68,722
Commission on remittances including home remittances 582,802 483,760
Commission on bancatakaful 99,331 146,961
Commission on sale of funds unit 200,708 129,387
Others 89,718 50,347
6,389,397 4,863,694
28 (LOSS) / GAIN ON SECURITIES
Realised - net 28.1 (1,992,260) (1,226,249)

Unrealised - held for trading - net - 9,180
(1,992,260) (1,217,069)
28.1 Realised (loss) / gain on:
Federal Government securities (305,347) (65,430)

Shares (1,711,496) (1,137,718)
Mutual funds (23,605) 12,155
Associates 48,188 (35,256)
(1,992,260) (1,226,249)
29 OTHER INCOME
Rent on property 170,509 165,926

Gain on disposal of fixed assets - net 14,446 26,413
Notice pay 4,651 592
Others 550 4,640
190,156 197,571

Un-audited
2023 2022
30 OPERATING EXPENSES
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
Total compensation expense 10,855,706 7,547,589
Property expense
Rent and taxes 177,642 265,170
Takaful 104,363 65,243
Utilities cost 1,346,403 1,008,108
Security (including guards) 1,039,543 723,617
Repair and maintenance (including janitorial charges) 775,419 498,699
Depreciation on owned fixed assets 624,198 410,470
Depreciation on non-banking assets 3,761 3,724
Depreciation on right-of-use assets 1,419,272 1,183,721
Others 191,390 113,952
5,681,991 4,272,704
Information technology expenses
Software maintenance 2,963,645 1,498,531
Hardware maintenance 369,894 251,708
Amortisation 232,756 137,311
Network charges 233,609 199,705
4,200,139 2,362,876
Other operating expenses
Directors' fees and allowances 120,535 97,623
Legal and professional charges 106,827 121,748
Outsourced services costs - staff 543,629 355,052
Travelling and conveyance 213,110 121,538
NIFT clearing charges 60,940 32,530
Depreciation 502,195 361,873
Training and development 52,250 11,577
Postage and courier charges 235,946 176,811
Communication 686,337 281,856
Marketing, advertisement and publicity 1,274,365 691,244
Donations 113,215 88,257
Auditors remuneration 24,419 24,120
Takaful 579,443 816,796
Stationery and printing 518,276 371,028
Bank fees and charges 160,603 96,438
Brokerage and commission 28,136 33,948
Deposit protection premium 532,404 452,995
Credit card bonus points redemption 355,868 152,699
Others 636,510 479,977
6,745,008 4,768,110
27,482,844 18,951,279
31 OTHER CHARGES
Penalties imposed by the State Bank of Pakistan 4,146 17,386
32 PROVISIONS AND WRITE-OFFS - NET
Provision / (reversal of provision) against diminution in value of investments 12.3 611,770 (129,046)
Provision / (reversal of provision) against financing 13.4 3,395,755 (374,515)
Provision / (reversal of provision) against other assets 16.1.1 2,326 (30,335)
Bad debts written-off directly 44,462 101,252
Recoveries of written-off / charged-off bad debts (361,007) (283,712)
Provision / (reversal of provision) against off balance sheet obligations 21.1 202,460 (19,373)
Impairment charged for non banking asset 41,525 -
3,937,291 (735,729)

Un-audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
33 TAXATION
Current 12,754,975 7,440,953

Prior periods 125,000 (1,038,275)
Deferred (811,151) 960,489
12,068,824 7,363,167
34 BASIC / DILUTED EARNINGS PER SHARE

Un-audited
For the quarter ended For the nine months ended
2023 2022 2023 2022
----------------------------- Rupees '000 -----------------------------
Profit after tax for the period 4,518,445 3,279,197 12,043,702 7,660,969
----------------- Number of shares in thousands -----------------
Weighted average number of ordinary shares 1,517,697 1,517,697 1,517,697 1,517,697
-------------------------------- Rupees --------------------------------
Basic earnings per share 2.98 2.16 7.94 5.05
34.1 Diluted earnings per share has not been presented as the Bank does not have any convertible instruments in
issue at September 30, 2023 and September 30, 2022 which would have any effect on the earnings per share
if the option to convert is exercised.
35 FAIR VALUE MEASUREMENTS
The fair value of quoted securities other than those classified as held to maturity, is based on quoted market
price. Quoted securities classified as held to maturity are carried at cost. The fair value of unquoted equity
securities, other than investments in associates and subsidiaries, is determined on the basis of the break-up
value of these investments as per their latest available audited financial statements.
The fair value of unquoted debt securities, fixed term loans, other assets, other liabilities, fixed term deposits
and borrowings cannot be calculated with sufficient reliability due to the absence of a current and active
market for these assets and liabilities and reliable data regarding market rates for similar instruments.
35.1 Fair value of financial assets
The Bank measures fair values using the following fair value hierarchy that reflects the significance of the
inputs used in making the measurements:
Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or
liabilities.
Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from
prices).
Level 3: Fair value measurements using input for the asset or liability that are not based on observable
market data (i.e. unobservable inputs).

The table below analyses financial instruments measured at the end of the reporting period by the level in the
fair value hierarchy into which the fair value measurement is categorised:

Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------------------------------------------------
On-balance sheet financial instruments Rupees '000 --------------------------------------------------
Financial assets - measured at fair value

Investments
Federal Government securities - 486,671,283 - 486,671,283
Shares 3,409,272 107,539 - 3,516,811
Non-Government debt securities 47,382,000 2,381,586 - 49,763,586
Financial assets - disclosed but not measured at fair value

Investments
Non-Government debt securities - 7,367,381 - 7,367,381
Non-financial assets - measured at fair value

Fixed assets (land and buildings) - - 17,668,479 17,668,479
Non-banking assets acquired in satisfaction of claims - - 2,665,713 2,665,713
Off-balance sheet financial instruments - measured at fair value

Forward purchase of foreign exchange - 49,948,134 - 49,948,134
Forward sale of foreign exchange - 10,612,398 - 10,612,398
Derivatives sales - 1,846,774 - 1,846,774

----------------------------------------------------------------------------------------------------------------------
On-balance sheet financial instruments Rupees '000 --------------------------------------------------

Investments
Shares 8,171,293 1,351,312 - 9,522,605

Investments


The Bank's policy is to recognise transfers into and out of the different fair value hierarchy levels at the date
when the event or change in circumstances require the Bank to exercise such transfers.
Valuation techniques used in determination of fair values within level 2

Item Valuation approach and input used
Pakistan Investment Bonds Fair values of Pakistan Investment Bonds are derived using the PKRV / PKFRV rates.
Fair values of GoP Ijara Sukuk are derived using the PKISRV rates announced by the Financial
Ijara Sukuk Market Association (FMA) through Reuters. These rates denote an average of quotes received
from different pre-defined / approved dealers / brokers.
Break-up value determined on the basis of the NAV of the company using the latest available
Unlisted ordinary shares
audited financial statements.
Term Finance Certificates (TFCs)
Fair values of Sukuk certificates are determined using the MUFAP or PSX rates.
and Sukuk Certificates


The valuation has been determined by interpolating the mark-to-market currency rates
Forward foreign exchange contracts
announced by the State Bank of Pakistan.
The Bank enters into derivative contracts with various counterparties. Derivatives that are valued
using valuation techniques with market observable inputs are mainly interest rate swaps, cross
Derivative instruments
currency swaps and forward foreign exchange contracts. The most frequently applied valuation
techniques include forward pricing and swap models, using present value calculations.
Units of mutual funds are valued using the net asset value (NAV) announced by the Mutual
Mutual funds
Funds Association of Pakistan (MUFAP).

Land and buildings are revalued by professionally qualified valuers as per the accounting policy
Fixed assets (land and buildings) disclosed in the unconsolidated financial statements of the Bank for the year ended December
31, 2022.
Non-banking assets acquired in NBAs are valued by professionally qualified valuers as per the accounting policy disclosed in the
satisfaction of claims unconsolidated financial statements of the Bank for the year ended December 31, 2022.
The valuations, mentioned above, are conducted by the valuation experts appointed by the Bank which are
also on the panel of the Pakistan Banks' Association (PBA). The valuation experts use a market based
approach to arrive at the fair value of the Bank’s properties. The market approach uses 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 quantitative
disclosure of sensitivity has not been presented in these condensed interim unconsolidated financial
statements.
36 SEGMENT INFORMATION
36.1 Segment details with respect to business activities
2023
Retail CIBG Treasury SAM Others Total
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ---------------------------------------------------------------------
Profit and loss account for the
nine months ended September
30, 2023 (Un-audited)
External funded revenue (35,899,244) 47,031,444 46,720,093 152,349 (8,861,416) 49,143,226
Inter segment revenue - net 73,071,001 (44,701,922) (44,507,032) (147,920) 16,285,873 -
External non-funded revenue 5,711,261 1,107,977 1,304,162 4,961 (1,203,544) 6,924,817
Total income 42,883,018 3,437,499 3,517,223 9,390 6,220,913 56,068,043
Segment direct expenses 25,231,559 1,906,427 420,851 459,389 - 28,018,226

Inter segment expense allocation 496,237 (316,756) (29,530) (149,951) - -
Total expenses 25,727,796 1,589,671 391,321 309,438 - 28,018,226
Provisions (13,496) 281,531 660,951 (534,961) 3,543,266 3,937,291
Profit before tax 17,168,718 1,566,297 2,464,951 234,913 2,677,647 24,112,526
Statement of financial position

as at September 30, 2023
(Un-audited)
Cash and bank balances 27,322,273 - 52,345,134 - - 79,667,407
Due from financial institutions - - - - - -
Investments 150,000 9,765,020 541,310,598 3,099,116 - 554,324,734
- Investment provision - - (1,958,622) (1,937,498) - (3,896,120)
Net inter segment lending 730,723,388 - - - (730,723,388) -
Financing - performing 95,801,762 386,325,794 - - 8,731,375 490,858,931
Financing- non-performing 4,333,399 5,833,505 - 12,495,382 74,066 22,736,352
- Financing- provisions (3,286,701) (4,586,517) - (11,510,165) (3,382,516) (22,765,899)
Others 22,158,629 11,631,443 40,216,839 138,797 55,198,753 129,344,461
Total assets 877,202,750 408,969,245 631,913,949 2,285,632 (670,101,710) 1,250,269,866

2023
---------------------------------------------------------------------------------------------------------------------- Rupees '000 -------------------------------------------------------------------------
Due to financial institutions 10,805,676 68,391,887 53,696,775 - - 132,894,338

Subordinated Sukuk - - - - - -
Deposits and other accounts 812,381,303 65,337,864 - 412,314 71,435,384 949,566,865
Net inter segment borrowing - 274,323,638 584,593,925 1,861,415 (860,778,978) -
Others 54,015,771 915,856 (4,789,892) 11,903 38,976,572 89,130,210
Total liabilities 877,202,750 408,969,245 633,500,808 2,285,632 (750,367,022) 1,171,591,413
Equity - - (1,586,859) - 80,265,312 78,678,453
Total equity and liabilities 877,202,750 408,969,245 631,913,949 2,285,632 (670,101,710) 1,250,269,866
Contingencies and commitments 34,421,468 84,237,488 105,952,873 1,776,622 2,604,354 228,992,805
2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 -------------------------------------------------------------------------
nine months ended September
30, 2022 (un-audited)
External funded revenue (19,442,046) 24,358,248 21,977,943 173,838 (129,552) 26,938,431
Inter segment revenue - net 38,158,346 (21,956,003) (20,511,019) 209,324 4,099,352 -
External non-funded revenue 4,456,267 1,540,515 1,645,276 (196,663) (814,587) 6,630,808
Total income 23,172,567 3,942,760 3,112,200 186,499 3,155,213 33,569,239
Segment direct expenses 11,240,135 600,494 219,963 124,251 7,095,989 19,280,832

Inter segment expense allocation 6,289,592 572,737 119,724 113,936 (7,095,989) -
Total expenses 17,529,727 1,173,231 339,687 238,187 - 19,280,832
Provisions (399,274) 417,798 (65,454) (684,932) (3,867) (735,729)
Profit before tax 6,042,114 2,351,731 2,837,967 633,244 3,159,080 15,024,136

as at December 31, 2022
(audited)
Cash and bank balances 19,076,053 - 39,839,531 - - 58,915,584
Due from financial institutions - - 9,815,098 - - 9,815,098
Investments 100,000 7,374,123 460,915,716 3,205,813 1,139,893 472,735,545
Financing- performing 101,531,845 342,314,662 - - 8,044,744 451,891,251
- Financing- provisions (2,901,661) (4,304,986) - (11,990,203) (132,176) (19,329,026)
Others 16,922,119 8,226,633 13,875,498 (1,820,592) 44,706,720 81,910,378
Total assets 789,382,426 359,197,265 523,148,291 (147,255) (597,227,864) 1,074,352,863
Due to financial institutions 9,147,902 78,339,254 62,647,240 - - 150,134,396

Subordinated sukuk - - - - - -
Deposits and other accounts 729,757,619 51,202,938 - 156,164 454,009 781,570,730
Net inter segment borrowing - 229,099,012 459,708,176 (302,624) (688,504,564) -
Others 50,476,905 556,061 2,638,487 (795) 18,893,668 72,564,326
Total liabilities 789,382,426 359,197,265 524,993,903 (147,255) (669,156,887) 1,004,269,452
Equity - - (1,845,612) - 71,929,023 70,083,411
Total equity and liabilities 789,382,426 359,197,265 523,148,291 (147,255) (597,227,864) 1,074,352,863

37 RELATED PARTY TRANSACTIONS
The Bank has related party transactions with its parent, subsidiary, associates, employee benefit plans and its directors and key management personnel.
The Bank enters into transactions with related parties in the ordinary course of business and on substantially the same terms as for comparable transactions with
persons 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 executives / officers is determined in accordance with the terms of their appointment.
Details of transactions with related parties during the period, other than those which have been disclosed elsewhere in these condensed interim unconsolidated
financial statements, are as follows:
September 30, 2023 (Un-audited) December 31, 2022 (Audited)

Key Key
Other Other
Parent Directors management Subsidiary Associates Parent Directors management Subsidiary Associates
related parties related parties
personnel personnel
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ----------------------------------------------------------------------------------------------------------------------
Investments
Opening balance - - - 1,139,893 1,751,322 3,268,466 - - - 1,139,893 893,247 3,904,683
Investment made during the period / year - - - - 14,196,909 - - - - - 1,283,823 12,215,000
Investment redeemed / sold during the
period / year - - - - (13,978,571) (1,253,428) - - - - (425,748) (12,851,217)
Closing balance - - - 1,139,893 1,969,660 2,015,038 - - - 1,139,893 1,751,322 3,268,466
Provision for diminution in value of

investments - - - - - 1,940,037 - - - - - 1,984,337
Islamic financing and related assets

Opening balance - 7 523,065 - - 1,392,080 - - 436,889 - - 1,709,934
Addition during the period / year - 100 564,958 - - - - 7 272,733 - - 617,654
Repaid during the period / year - - (434,105) - - (234,942) - - (186,557) - - (935,508)
Closing balance - 107 653,918 - - 1,157,138 - 7 523,065 - - 1,392,080
Provision held against advances - - - - - 413,687 - - - - - 457,987
September 30, 2023

Fixed assets - right-of-use assets
Opening balance - - - 16,138 - - - - - 2,878 - -
Addition during the period / year - - - - - - - - - 18,742 - -
Disposals during the period / year (13,015)
Depreciation for the period / year - - - (3,123) - - - - - (5,482) - -
Third Quarter
Closing balance - - - - - - - - - 16,138 - -
Accumulated depreciation - - - - - - - - - 17,409 - -
41
42
Key Key
Other Other
personnel personnel
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ----------------------------------------------------------------------------------------------------------------------
Third Quarter
Other assets
Profit / return accrued - - 5,536 - - 25,904 - - 1,081 - - 79,923
Commission income receivable - - - 22,396 - - - - - 12,025 - -
Defined benefit plan asset - - - - - 168,825 - - - - - 168,825
Maintenance and other receivables - - - 8,775 - - - - - - - -
Others - - - - - 1,784,560 - - - - - 3,302,249
- - 5,536 31,171 - 1,979,289 - - 1,081 12,025 - 3,550,997
September 30, 2023

Deposits and other accounts
Opening balance 4,595,199 58,656 105,177 20,087 57,393 26,038,101 328,397 51,148 178,430 55,236 15,350 9,800,472
Received during the period / year 656,431 159,392 1,458,589 23,531,560 579,300,338 26,732,966 4,595,017 88,829 1,951,839 19,350,507 3,243,262 603,296,210
Withdrawn during the period / year (5,251,448) (124,527) (1,481,921) (23,540,769) (546,067,864) (50,855,005) (328,215) (81,321) (2,025,092) (19,385,656) (3,201,219) (587,058,581)
Closing balance 182 93,521 81,845 10,878 33,289,867 1,916,062 4,595,199 58,656 105,177 20,087 57,393 26,038,101
Other liabilities
Profit / return payable - 973 281 103 572,680 16,575 - 429 594 179 355 319,447
Lease liability against right-of-use assets - - - - - - - - - 12,833 - -
Other liabilities 4,923,232 - - - - 1,811,176 - - - 18,833 - 359,297
4,923,232 973 281 103 572,680 1,827,751 - 429 594 31,845 355 678,744
Contingencies and commitments

Trade related commitments * - - - - - 204,046 - - - - - 10,603
- - - - - 204,046 - - - - - 10,603
* represents outstanding guarantee
37.1 Balances pertaining to parties that were related at the beginning of the period but ceased to be so related during any part of the current period are not reflected as
part of the closing balance. The same are accounted for through the movement presented above.
RELATED PARTY TRANSACTIONS
September 30, 2023 (Un-audited) September 30, 2022 (Un-audited)
Key Key
Other Other
personnel personnel
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ----------------------------------------------------------------------------------------------------------------------
Income
Profit / return earned - - 24,067 - - 86,446 - - 19,725 - - 73,397
Fee and commission income - 297 291 200,889 15,864 12,178 - 61 68 129,424 17 7,779
Dividend income - - - - 12,315 49,661 - - - - 50,089 92,553
Net gain / (loss) on sale of securities - - 57 - (13,671) 26,660 - - 231 - (35,256) 1,440
Maintenance income - - - 6,130 - - - - - 5,721 - -
Rent income - - - 22,625 - - - - - 21,124 - -
Expense
Profit / return expensed - 5,795 4,335 2,591 1,678,338 113,575 - 2,915 2,156 1,455 727 747,840
Charges on lease liability - - - 885 - - - - - 273 - -
Director's fee and other expenses - 120,535 - - - - - 97,623 - - - -
Remuneration - - 591,174 - - 2,755 - - 503,001 - - 1,138
Subscription Fees - - - - - 5,346 - - - - - 4,605
Commission expense - - - 25,000 - - - - - 25,000 - -

Charge for defined benefit plan - - - - - 198,675 - - - - - 177,570
Contribution to defined contribution plan - - - - - 281,366 - - - - - 207,437
Donations made during the period - - - - - 113,215 - - - - - 88,257
(Reversal) / Provision against investment - - - - - (44,300) - - - - - -
Others
Shares / units purchased during
September 30, 2023

the period - - - - 14,196,909 - - - - - - 9,575,000
Shares / units sold during the period - - - - 13,964,901 1,279,577 - - - - 479,509 9,235,167
Government securities purchased
during the period - - 26,800 - - - - - 245,765 - - 1,738,360
Government securities sold during
the period - - 86,301 - - 1,932,162 - - 250,004 - - 3,145,468
Third Quarter
Contribution to defined benefit plan - - - - - 198,675 - - - - - 177,570
Acquisition of fixed assets - - - 85,339 - - - - - - - -
43
Un-audited Audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
38 CAPITAL ADEQUACY, LEVERAGE RATIO & LIQUIDITY REQUIREMENTS
Minimum capital requirement (MCR):
Paid-up capital (net of losses) 15,176,965 15,176,965
Capital adequacy ratio (CAR):
Eligible common equity tier 1 (CET 1) capital 64,771,578 55,718,084

Eligible additional tier 1 (ADT 1) capital - -
Total eligible tier 1 capital 64,771,578 55,718,084
Eligible tier 2 capital 13,664,478 11,155,422
Total eligible capital (tier 1 + tier 2) 78,436,056 66,873,506
Risk weighted assets (RWAs):

Credit risk 292,917,994 308,988,249
Market risk 28,751,520 51,454,833
Operational risk 71,817,545 71,817,545
Total 393,487,059 432,260,627
Common equity tier 1 capital adequacy ratio (in %) 16.46% 12.89%
Tier 1 capital adequacy ratio (in %) 16.46% 12.89%
Total capital adequacy ratio (in %) 19.93% 15.47%
Leverage ratio (LR):
Eligible tier-1 capital 64,771,578 55,718,084

Total exposures 1,434,078,184 1,237,857,649
Leverage ratio (in %) 4.52% 4.50%
Liquidity coverage ratio (LCR):
Total high quality liquid assets 482,209,188 368,486,552

Total net cash outflow 322,498,667 206,193,466
Liquidity coverage ratio (Ratio) 1.495 1.787
Net stable funding ratio (NSFR):
Total available stable funding 784,595,411 706,214,017

Total required stable funding 467,858,178 416,224,461
Net stable funding ratio (in %) 167.70% 169.67%

39 GENERAL
Comparative information has been re-classified, re-arranged or additionally incorporated in these condensed
interim unconsolidated financial statements, wherever necessary, to facilitate comparison and to conform with
changes in presentation in the current period. There have been no significant reclassifications during the
period.
40 NON-ADJUSTING EVENTS AFTER THE REPORTING DATE
The Board of Directors, in their meeting held on October 26, 2023 declared an interim cash dividend of
Re. 1 per share (10%) for the nine months ended September 30, 2023. This is in addition to Re. 1 already paid
during the year bringing the total dividend for nine months to Rs. 2 per share (September 30, 2022: Rs. 6).
41 DATE OF AUTHORISATION FOR ISSUE
These condensed interim unconsolidated financial statements were authorised for issue on October 26, 2023
by the Board of Directors of the Bank.

Directors’ Report
Consolidated Financial Statements
On behalf of the Board of Directors, we are pleased to present the Consolidated Directors’
Report of Faysal Bank Limited Group, along with unaudited condensed interim consolidated
financial statements for the quarter and nine months ended September 30, 2023.
Group Profile
Faysal Bank Ltd. (FBL) has 99.9% shareholding in Faysal Asset Management Limited (FAML).
FAML is an unlisted public limited company registered as a Non-Banking Finance Company
(NBFC), licensed to carry out asset management and investment advisory services under the
Non-Banking Finance Companies (Establishment & Regulations) Rules, 2003 and the Non-
Banking Finance Companies and Notified Entities Regulations, 2008.
Mutual funds managed by FAML are considered as associates as the Bank has significant
influence over such funds:
Associates
Faysal Islamic Pension Fund - Debt
Faysal Islamic Pension Fund - Equity
Faysal Halal Amdani Fund
Faysal Islamic Sovereign Fund - FISP-I
Faysal Islamic Pension Fund - Money Market
Faysal Islamic Savings Growth Fund
Faysal Islamic Special Income Fund - FISIP-I
Faysal Islamic Stock Fund
Faysal Pension Fund - Debt
Faysal Pension Fund - Equity
Faysal Pension Fund - Money Market
Faysal Special Savings Fund - FSSP-I
Faysal Islamic Financial Growth Fund - FIFGP-I
Faysal Special Savings Fund - FSSP-II
Faysal Special Savings Fund - FSSP-III
Faysal Stock Fund
FBL Group structure is as follows:
Holding Company : Faysal Bank Limited

Subsidiary : Faysal Asset Management Limited
Financial Highlights:
Rs. in million
Key Balance Sheet Numbers September ‘23 December ’22 Growth %
Investment 550,572 469,308 17.3
Financing 490,829 454,261 8.1
Total Assets 1,251,313 1,075,006 16.4
Deposits 949,561 781,556 21.5

Rs. in million
Profit & Loss Account September ‘23 September ’22 Growth %
Total Revenue 56,652 34,018 66.5
Total Expenses 28,275 19,487 45.1
Profit before tax and provisions 28,377 14,531 95.3
Net Provisions 3,937 (736) -634.9
Share of profit from associates 81 21 285.7
Profit before tax 24,521 15,288 60.4
Tax 12,212 7,468 63.5
Profit after tax 12,309 7,820 57.4
Earnings per share (Rupees) 8.11 5.15 57.4
This year holds special significance for the Bank, as we joyfully commemorate our first year
operating as a full-fledged Islamic Bank. Through steadfast dedication to achieving excellence,
we have achieved outstanding financial results and unparalleled expansion. On a consolidated
basis, the Group achieved a record Profit Before Tax (PBT) of PKR 24.5 billion, showcasing an
impressive increase of 60.4% compared to the corresponding period last year. Profit After Tax
(PAT) rose to PKR 12.3 billion in 9m’23 representing a 57.4% increase from PKR 7.8 billion in
9m’22. Consequently, Earnings Per Share surged from PKR 5.15 to PKR 8.11 exhibiting a
commendable rise.
FAML continued to show improvement in performance and Assets Under Management (AUMs)
as of September 30, 2023 were PKR 110 billion. FAML made Profit After Tax of PKR 283 million
during the nine months ended under review registering a 33% growth over the same period last
year. The strong financial performance of FAML is commendable considering the bearish stock
market conditions prevailing during the period under review.
Credit Rating
VIS Credit Rating Company Limited (VIS) and Pakistan Credit Rating Agency Limited (PACRA)
have re-affirmed the following entity ratings to Faysal Bank Ltd:
Long-Term AA
Short-Term A1+
‘Stable’ outlook has been assigned to the ratings by both the rating agencies.
VIS has assigned Management Quality rating of AM2++ to FAML. The rating signifies asset
manager exhibiting very good management characteristics.
Holding Company
Ithmaar Bank B.S.C (closed), a banking entity regulated by the Central Bank of Bahrain is the
parent company holding directly and indirectly 66.78% (2022: 66.78%) of the shareholding in
Faysal Bank Ltd. Ithmaar Bank B.S.C. (closed) is a wholly owned subsidiary of Ithmaar
Holdings B.S.C. and Dar Al-Maal Al-Islami Trust (DMIT) is the holding entity of Ithmaar Holding

B.S.C. and ultimate parent of the Group. DMIT was formed by indenture under the laws of the
Commonwealth of The Bahamas for the purpose of conducting business affairs in conformity
with Islamic law, principles and tradition.
Dividend
The Board of Directors, in their meeting held on October 26, 2023 declared an interim cash
dividend of Re. 1 per share (10%) for the nine months ended September 30, 2023. This is in
addition to Re. 1 already paid during the year bringing the total dividend for nine months to
Rs. 2 per share (September 30, 2022: Rs. 6).
Acknowledgement
On behalf of the Board and Management, we extend our gratitude to our esteemed
shareholders for their unwavering support. We are indebted to our customers for doing
business with FBL. We would like to place on record our appreciation for regulators and the
Government of Pakistan; the State Bank of Pakistan and the Securities and Exchange
Commission of Pakistan for their continued support and guidance and for developing and
strengthening the banking and financial services sector through continuous improvement in the
regulatory and governance framework.
As always, we would also like to express sincere appreciation for the Shariah Board. We would
also like to take this opportunity to recognize and commend the unwavering commitment and
exceptional efforts exhibited by our employees who are driving forward the growth and
expansion in all aspects. We extend our heartfelt thanks to them for their relentless dedication
and hard work.
Approval
In compliance with the requirement of the Companies Act, 2017, this Directors’ Report with the
recommendation of the Board Audit and Corporate Governance Committee has been approved
by the Directors in their meeting held on October 26, 2023 and signed by the Chief Executive
Officer and a director.
President & CEO Chairman

Islamabad
Dated: October 26, 2023

‫ڈ‬
‫وا ‪ 9‬ہ‬ ‫ہا ا س ‪2023 30‬‬ ‫رڈ آفڈا ز ‪26‬ا ‪2023‬‬

‫وہ ل‬ ‫ا ن ۔ ادا ہا رو‬ ‫رى ڈ‬ ‫)‪(10%‬رو‬ ‫‪1‬رو‬
‫)‪ 6 :2022 30‬رو (۔‬ ‫ڈ ‪2‬رو‬ ‫دورا نادا د اس ح‪ 9‬ہ‬
‫ن‬
‫ا ں‬ ‫ادا‬ ‫ز‬ ‫ناور ا ا م‬ ‫رڈ اور وپ ا‬

‫و‬ ‫رى اور‬ ‫ى‬ ‫رى ر اورا‬ ‫۔ وناورر‬ ‫ا ا دا ر‬
‫ر ا ا‬ ‫ناور‬ ‫دو‬ ‫ن‪،‬‬ ‫ورك‬ ‫ر ىاور ر‬
‫ار ۔‬ ‫آف ن‬
‫ز‬ ‫رڈاور‬ ‫م‬ ‫اور د‬ ‫رى‬ ‫ر‬ ‫ح وپ‬

‫ار ۔‬ ‫ںاور‬ ‫ر ۔ ان‬
‫رى‬
‫اسڈا زر رٹ‬ ‫رش‬ ‫ر‬ ‫‪ ،‬رڈ آڈٹ اور ر ر‬ ‫ا ‪ 2017‬ا‬

‫آ اورا‬ ‫ا‬ ‫اوراس‬ ‫ر‬ ‫ہا س ڈا ز‬ ‫‪ 26‬ا ‪2023،‬‬
‫۔‬ ‫د‬ ‫د‬ ‫ڈا‬
‫راور اىاو‬
‫ا مآ د‬
‫‪2023‬‬ ‫‪26‬ا‬

‫‪5.15‬رو‬ ‫ا‬ ‫ز دہ ۔‬ ‫‪57.4‬‬ ‫ت‬ ‫ل ا‬ ‫ر‬
‫۔‬ ‫ر د‬ ‫ا‬ ‫ھ ‪8.11‬رو ر‬
‫)‪(AUMs‬‬ ‫ا ر‬ ‫ا‬ ‫رى ر اور‪2023 30‬‬ ‫ى‬ ‫‪ FAML‬ر د‬

‫ل ا‬ ‫از‬ ‫۔ ‪ FAML‬ز ہ ت دورا ن‪ 283‬رو‬ ‫‪110‬‬
‫ت د‬ ‫ى‬ ‫ہ ت دورا ن ك ر‬ ‫۔ز‬ ‫‪ 33‬زا‬ ‫ت‬
‫۔‬ ‫ط ر د‬ ‫‪FAML‬‬
‫ٹر‬
‫)‪ (PACRA‬درج ِذ در‬ ‫ا‬ ‫ٹر‬ ‫ن‬ ‫)‪(VIS‬اور‬ ‫ٹر‬ ‫وى آ ا‬

‫‪:‬‬ ‫ى‬
‫‪AA‬‬ ‫ا د‪:‬‬
‫‪A1+‬‬ ‫ا د‪:‬‬
‫۔‬ ‫ى‬ ‫در‬ ‫ا‬ ‫ٹر‬ ‫رہ‬
‫۔ر‬ ‫‪AM2++‬‬ ‫ا ر‬ ‫ا ےا ا‬ ‫ا‬ ‫ٹر‬ ‫وى آ ا‬

‫۔‬ ‫ت‬ ‫ا ر د‬ ‫ا‬
‫ر‬ ‫ادارہ ‪ ،‬ا اور وا‬ ‫ل آف‬ ‫۔ ) زڈ(‪،‬‬ ‫۔ا‬ ‫ر‬ ‫ا‬
‫۔ا ۔‬ ‫اہادارہ ۔ا ر‬ ‫)‪( 66.78 2022‬‬ ‫‪66.78‬‬
‫)ڈى ا آ (‬ ‫ذ ادارہ اوردا را لا‬ ‫۔ا ۔‬ ‫زڈ(‪،‬ا ر‬ ‫)‬
‫‪،‬‬ ‫ا‬ ‫آ ا‬ ‫م و آف س ا‬ ‫ادارہ ۔ڈى ا آ‬ ‫ا‬ ‫ا‬
‫۔‬ ‫رو رى ا را مد‬ ‫ت‬ ‫ںاورروا‬ ‫ا‬

‫‪:‬‬ ‫درج ذ‬
‫ِ‬ ‫وپ‬ ‫ا‬ ‫ا‬
‫‪:‬‬
‫ا‬ ‫‪:‬‬ ‫ذ ادارہ‬
‫‪%‬‬ ‫ںا ادو ر‬
‫‪17.3‬‬ ‫‪469,308‬‬ ‫‪550,572‬‬
‫‪8.1‬‬ ‫‪454,261‬‬ ‫‪490,829‬‬
‫‪16.4‬‬ ‫‪1,075,006‬‬ ‫‪1,251,313‬‬ ‫ت‬ ‫ا‬

‫‪21.5‬‬ ‫‪781,556‬‬ ‫‪949,561‬‬
‫‪%‬‬
‫اؤ‬
‫‪66.5‬‬ ‫‪34,018‬‬ ‫‪56,652‬‬
‫‪45.1‬‬ ‫‪19,487‬‬ ‫‪28,275‬‬ ‫ا ا ت‬

‫‪95.3‬‬ ‫‪14,531‬‬ ‫‪28,377‬‬
‫)‪(634.9‬‬ ‫)‪(736‬‬ ‫‪3,937‬‬ ‫وو ن‬

‫‪285.7‬‬ ‫‪21‬‬ ‫‪81‬‬ ‫ا‬ ‫ا‬
‫‪60.4‬‬ ‫‪15,288‬‬ ‫‪24,521‬‬
‫‪63.5‬‬ ‫‪7,468‬‬ ‫‪12,212‬‬
‫‪57.4‬‬ ‫‪7,820‬‬ ‫‪12,309‬‬
‫‪57.4‬‬ ‫‪5.15‬‬ ‫‪8.11‬‬
‫ا از‬ ‫ل‬ ‫ا‬ ‫م‬ ‫ا‬ ‫‪،‬‬ ‫صا‬ ‫ل‬

‫ل‬ ‫اور‬ ‫ار‬ ‫ذر ‪،‬‬ ‫ل‬ ‫۔ ى‬ ‫ر‬
‫ل ا ت‬ ‫‪ 24.5‬رو‬ ‫ل‬ ‫از‬ ‫دوں ‪ ،‬وپ‬ ‫۔‬
‫رو‬ ‫ل ‪12.3‬‬ ‫ہ‪ 9‬ہ دورا ن ا ز‬ ‫ز‬ ‫۔‬ ‫‪60.4‬‬

‫ارے‬
‫اور‪ 9‬ہ‬ ‫وا‬ ‫‪2023 30‬‬ ‫رڈ آفڈا ز ف ‪،‬آپ‬

‫اروں‬ ‫رى‬ ‫زر رٹ‪ ،‬آڈٹ ہ‬ ‫ر رٹ ‪،‬ڈا‬ ‫وپ‬
‫۔‬ ‫ت س ر‬
‫وپ و‬
‫۔ا‬ ‫)‪99.9% (FAML‬‬ ‫ا‬ ‫)‪(FBL‬‬
‫ڈ ‪،‬‬ ‫ر ر‬ ‫(‬ ‫)ا ا‬ ‫ن۔‬ ‫ا ےا ا ا ان۔‬
‫ا‬ ‫ا‬ ‫(رو ‪ 2003،‬اور ن۔‬ ‫ا ر‬ ‫)ا‬ ‫س ن۔‬
‫۔‬ ‫ا وا رى و ا‬ ‫رى‬ ‫اور‬ ‫ا‬ ‫‪2008،‬‬ ‫ر‬
‫‪:‬‬ ‫ان ا‬ ‫ر‬ ‫ا‬ ‫زا‬ ‫‪ FAML‬ز ِا م ِ‬

‫درج ذ‬
‫ا‬ ‫ا‬
‫‪،‬ڈ‬ ‫ا‬
‫‪،‬ا‬ ‫ا‬
‫لآ‬
‫ورن ‪FISP-I،‬‬ ‫ا‬
‫‪ ،‬ر‬ ‫ا‬
‫و‬ ‫ا‬
‫ا ا ‪FISIP-I‬‬ ‫ا‬
‫ا ك‬ ‫ا‬
‫‪،‬ڈ‬
‫‪،‬ا‬
‫‪ ،‬ر‬
‫‪FSSP-I‬‬ ‫ا‬
‫و ‪FIFGP-I‬‬ ‫ا‬
‫‪FSSP-II‬‬ ‫ا‬
‫‪FSSP-III‬‬ ‫ا‬
‫ا ك‬

Condensed Interim Consolidated Statement of Financial Position
As at September 30, 2023
Un-audited Audited
2023 2022
----------------------------------------------------------------------------------------------------------------------
Note Rupees '000 ------------------------------
ASSETS
Cash and balances with treasury banks 10 78,907,577 56,130,598

Balances with other banks 11 759,993 2,785,113
Due from financial institutions 12 - 9,815,098
Investments - net 13 550,571,621 469,308,034
Islamic financing and related assets - net 14 490,829,384 454,260,608
Fixed assets 15 38,222,129 35,196,154
Intangible assets 16 2,592,305 2,341,852
Deferred tax assets 21 - -
Other assets - net 17 89,429,922 45,169,012
1,251,312,931 1,075,006,469
LIABILITIES
Bills payable 18 15,168,857 21,309,950

Due to financial institutions 19 132,894,338 150,134,396
Deposits and other accounts 20 949,560,634 781,556,223
Subordinated sukuk - -
Deferred tax liabilities 21 22,657 744,088
Other liabilities 22 74,172,483 50,647,609
1,171,818,969 1,004,392,266
NET ASSETS 79,493,962 70,614,203
REPRESENTED BY
Share capital 15,176,965 15,176,965

Reserves 14,026,212 11,675,968
Surplus on revaluation of assets - net 23 10,226,932 10,669,662
Unappropriated profit 40,063,531 33,091,551
Total equity attributable to the equity holders of the Bank 79,493,640 70,614,146
Non-controlling interest 322 57
79,493,962 70,614,203
CONTINGENCIES AND COMMITMENTS 24
The annexed notes 1 to 42 form an integral part of these condensed interim consolidated financial statements.

Condensed Interim Consolidated Profit and Loss Account (Un-audited)

2023 2022 2023 2022
----------------------------------------------------------------------------------------------------------------------
Note Rupees '000 ---------------------------------------------
Profit / return earned on Islamic financing and related assets,

investments and placements 26 51,251,885 29,765,754 133,358,372 70,582,200
Profit / return on deposits and other dues expensed 27 32,839,065 19,067,191 84,207,717 43,650,568
Net profit / return 18,412,820 10,698,563 49,150,655 26,931,632
OTHER INCOME
Fee and commission income 28 2,447,083 1,790,291 6,960,499 5,313,602

Dividend income 21,663 19,343 231,646 368,913
Foreign exchange income 454,793 813,647 2,126,468 2,242,692
Loss / Income from derivatives (143,762) 77,031 (27,420) 126,929
Loss on securities 29 (409,661) (389,030) (1,945,145) (1,141,833)
Other income 30 51,020 51,320 155,008 176,411
2,421,136 2,362,602 7,501,056 7,086,714
Total income 20,833,956 13,061,165 56,651,711 34,018,346
OTHER EXPENSES
Operating expenses 31 9,870,026 6,828,293 27,739,074 19,157,675

Workers Welfare Fund 195,733 133,138 531,236 312,167
Other charges 32 1,586 12,672 4,146 17,386
Total other expenses 10,067,345 6,974,103 28,274,456 19,487,228
Share of profit of associates 13.5 112,892 147,602 80,827 21,105
Profit before provisions 10,879,503 6,234,664 28,458,082 14,552,223

Provisions and write-offs - net 33 1,612,187 (330,071) 3,937,291 (735,729)
Extra ordinary / unusual items - - - -
PROFIT BEFORE TAXATION 9,267,316 6,564,735 24,520,791 15,287,952
Taxation 34 4,618,285 3,102,835 12,212,119 7,468,348
PROFIT AFTER TAXATION 4,649,031 3,461,900 12,308,672 7,819,604
Attributable to:
Equity holders of the Bank 4,648,900 3,461,889 12,308,407 7,819,583
Non-controlling interest 131 11 265 21
4,649,031 3,461,900 12,308,672 7,819,604
---------------------------------------------------------------------------------------------------------------------- Rupees -------------------------------------------------
Basic / diluted earnings per share 35 3.06 2.28 8.11 5.15

Condensed Interim Consolidated Statement of Comprehensive Income (Un-audited)

2023 2022 2023 2022
------------------------------------------------------------------------------------------------------------------ Rupees '000 --------------------------------------------------
Profit after taxation for the period 4,649,031 3,461,900 12,308,672 7,819,604
Other comprehensive income / (loss)
Items that may be reclassified to the profit and

loss account in subsequent periods:
- Movement in surplus on revaluation of

investments - net of tax 327,992 (312,880) 193,984 (1,328,895)
Total comprehensive income 4,977,023 3,149,020 12,502,656 6,490,709
Attributable to:
Equity holders of the Bank 4,976,892 3,149,009 12,502,391 6,490,688
Non-controlling interest 131 11 265 21
4,977,023 3,149,020 12,502,656 6,490,709

Condensed Interim Consolidated Statement Of Changes In Equity
Reserves Surplus / (deficit)

Capital Reserves on revaluation of
Non-distri-
butable Fixed Unappro- Non-
Share Reserve
capital Statutory assets / priated controlling Total
capital Share arising on Total Invest-
reserve reserve non- Total profit interest
premium amal- ments
(NCR) - gain banking
gamation
on bargain assets
purchase
------------------------------------------------------------------------------------------------------- Ru pees '000 -------------------------------------------------------------------------------------------------------
Balance as at January 1, 2022 (Audited) 15,176,965 10,131 325,418 23,952 12,253,682 12,613,183 111,599 6,949,984 7,061,583 31,278,631 38 66,130,400
Profit after taxation for the nine months
ended September 30, 2022 - - - - - - - - - 7,819,583 21 7,819,604
Other comprehensive loss - net of tax - - - - - - (1,328,895) - (1,328,895) - - (1,328,895)
Total comprehensive (loss) / income - - - - - - (1,328,895) - (1,328,895) 7,819,583 21 6,490,709
Transfer to statutory reserve - - - - 1,532,194 1,532,194 - - - (1,532,194) - -

Final cash dividend declared on Feburary 23, 2022

at Rs. 1 per share - - - - - - - - - (1,517,100) - (1,517,100)
at Rs. 0.5 per share - - - - - - - - - (758,848) - (758,848)

assets to unappropriated profit - net of tax - - - - - - - (78,069) (78,069) 78,069 - -
relationship - net of tax - - (56,445) - - (56,445) - - - - - (56,445)
Balance as at September 30, 2022 (Un-audited) 15,176,965 10,131 268,973 23,952 13,785,876 14,088,932 (1,217,296) 6,871,915 5,654,619 35,368,141 59 70,288,716
Profit after taxation for the period from
October 1, 2022 to December 31, 2022 - - - - - - - - - 3,618,060 (2) 3,618,058
Other comprehensive (loss) / income - net of tax - - - - - - (607,468) 5,646,688 5,039,220 27,244 - 5,066,464
Total comprehensive (loss) / income - - - - - - (607,468) 5,646,688 5,039,220 3,645,304 (2) 8,684,522
Transfer from statutory reserve - - - - (3,115,700) (3,115,700) - - - 3,115,700 - -

Transfer to statutory reserve - - - - 714,440 714,440 - - - (714,440) - -
assets to unappropriated profit - net of tax - - - - - - - (19,200) (19,200) 19,200 - -
fixed assets on disposal - net of tax - - - - - - - (4,977) (4,977) 4,977 - -
Transaction with owners, recorded directly
in equity
2nd interim cash dividend declared on
October 27, 2022 at Rs. 5.5 per share - - - - - - - - - (8,347,331) - (8,347,331)
Balance as at December 31, 2022 (Audited) 15,176,965 10,131 257,269 23,952 11,384,616 11,675,968 (1,824,764) 12,494,426 10,669,662 33,091,551 57 70,614,203
Profit after taxation for the nine months

ended September 30, 2023 - - - - - - - - - 12,308,407 265 12,308,672
Other comprehensive income - net of tax - - - - - - 193,984 - 193,984 - - 193,984

Total comprehensive income - - - - - - 193,984 - 193,984 12,308,407 265 12,502,656
Transfer to statutory reserve - - - - 2,408,740 2,408,740 - - - (2,408,740) - -
Final cash dividend declared
on Febuary 23, 2023 at Rs. 1 per share - - - - - - - - - (1,517,697) - (1,517,697)

at Rs. 1 per share - - - - - - - - - (1,517,697) - (1,517,697)

assets to unappropriated profit - net of tax - - - - - - - (361,063) (361,063) 107,707 - (253,356)
non-banking assets - net of tax - - - - - - - (275,651) (275,651) - - (275,651)
Balance as at September 30, 2023 (Un-audited) 15,176,965 10,131 198,773 23,952 13,793,356 14,026,212 (1,630,780) 11,857,712 10,226,932 40,063,531 322 79,493,962

Condensed Interim Consolidated Cash Flow Statement (Un-audited)

2023 2022
----------------------------------------------------------------------------------------------------------------------
Note Rupees '000 ------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation 24,520,791 15,287,952
Less: dividend income (231,646) (368,913)
Add: share of loss of associates (80,827) (21,105)
24,208,318 14,897,934
Adjustments:
Depreciation on owned fixed assets 31 1,532,579 1,055,396
Amortisation of intangible assets 31 233,295 137,717
Depreciation on right-of-use assets 31 1,419,272 1,222,343
Depreciation on non-banking assets 31 3,761 3,724
Workers Welfare Fund 531,236 312,167
Provision / (Reversal of provision) against loans and advances - net 33 3,395,755 (374,515)
Provision / (Reversal of provision) for diminution in value of investments - net 33 611,770 (129,046)
Provision / (Reversal of provision) against other assets - net 33 2,326 (30,336)
Provision / (Reversal of provision) against off balance sheet obligations - net 33 202,460 (19,373)
Unrealised loss / (gain) on securities - held for trading - net 29 - (72,463)
Gain on sale of fixed assets - net 30 (14,765) (26,377)
Charge for defined benefit plan 132,450 118,380
Loss / Income from derivative contracts - net 27,420 (126,929)
Profit / return expensed - lease liability against right-of-use assets 27 1,128,322 908,175
Bad debts written off directly 33 44,462 101,252
9,250,343 3,080,115
33,458,661 17,978,049
(Increase) / decrease in operating assets
Due from financial institutions 9,815,098 -
Held-for-trading securities 234,475 12,295,186
Financing (40,008,993) (71,135,120)
Others assets (excluding advance taxation) (44,970,491) (32,522,082)
(74,929,911) (91,362,016)
Increase / (decrease) in operating liabilities
Bills payable (6,141,093) (2,446,707)
Due to financial institutions (17,625,783) 68,830,250
Deposits 168,004,411 80,984,072
Other liabilities (excluding current taxation) 21,855,323 13,899,652
166,092,858 161,267,267
Income tax paid (13,144,441) (6,811,641)
Contribution to gratuity fund (293,519) (118,380)
Net cash generated from operating activities 111,183,648 80,953,279
CASH FLOWS FROM INVESTING ACTIVITIES

Net investment in available-for-sale securities (78,868,752) (69,888,145)
Net (investment) / divestment in associates (786,246) (278,880)
Net (investment) / divestment in held-to-maturity securities (2,455,995) 959,116
Dividends received 220,357 325,710
Investment in operating fixed assets (4,204,863) (2,523,372)
Investment in intangible assets (546,345) (258,882)
Proceeds from sale of fixed assets 52,814 29,548
Net cash used in investing activities (86,589,030) (71,634,905)
CASH FLOWS FROM FINANCING ACTIVITIES

Payment of lease liability against right-of-use assets (1,250,018) (2,284,398)
Dividend paid (2,978,466) (1,031,235)
Net cash used in financing activities (4,228,484) (3,315,633)
Increase in cash and cash equivalents during the period 20,366,134 6,002,741
Cash and cash equivalents at the beginning of the period 57,253,535 59,488,821
Cash and cash equivalents at the end of the period 77,619,669 65,491,562

Notes to and forming part of the Condensed Interim Consolidated Financial Statements (Un-audited)
1 STATUS AND NATURE OF BUSINESS
1.1 The "Group" consists of:
(i) Faysal Bank Limited - Holding Company
(ii) Faysal Asset Management Limited - Subsidiary Company

1.1.1 Holding Company - Faysal Bank Limited
Faysal Bank Limited (the Bank or the Holding Company) was incorporated in Pakistan on October 3, 1994 as
a public limited company under the provisions of the repealed Companies Ordinance, 1984 (now the
Companies Act, 2017). Its shares are listed on the Pakistan Stock Exchange Limited. The Bank is engaged in
Shariah compliant modern Corporate, Commercial and Consumer banking activities. The Bank is operating
through 700 branches (December 31, 2022: 700 branches) including 2 sub-branches (December 31, 2022:
2).
The Registered Office of the Bank is located at Faysal House, ST-02, Shahra-e-Faisal, Karachi.
Ithmaar Bank B.S.C (closed), a fully owned subsidiary of Ithmaar Holdings B.S.C is the parent company of the
Bank, holding directly and indirectly 66.78% (December 31, 2022: 66.78%) of the shareholding of the Bank.
Dar Al-Maal Al-Islami Trust (DMIT), (ultimate parent of the Bank) is the holding company of Ithmaar Holdings
B.S.C.
The State Bank of Pakistan has issued the Islamic Banking License No. BL(I) - 01 (2022) dated December 30,
2022 in the Bank's name, effective from January 1, 2023.
The Pakistan Credit Rating Agency Limited (PACRA) and VIS Credit Rating Company Limited have determined
the Bank's long-term rating as 'AA' (December 31, 2022: 'AA') and the short term rating as 'A1+' (December
31, 2022: 'A1+') on June 23, 2023 and June 27, 2023 respectively.
1.1.2 Subsidiary Company - Faysal Asset Management Limited

Percentage of holding
2023 2022
Faysal Asset Management Limited - Subsidiary 99.99% 99.99%
Faysal Asset Management Limited (the Subsidiary Company) was incorporated in Pakistan under the
provisions of the repealed Companies Ordinance, 1984 (now Companies Act, 2017) on August 6, 2003 as an
unlisted public limited company. The Subsidiary Company commenced its operations on November 14, 2003.
The registered office of the Subsidiary Company is located at 7th Floor, West Wing, Faysal House, ST-02,
Shahra-e-Faisal, Karachi.
The Subsidiary Company is a Non-Banking Finance Company (NBFC), licensed to carry out asset
management and investment advisory services under the Non-Banking Finance Companies (Establishment
and Regulation) Rules, 2003 and the Non-Banking Finance Companies and Notified Entities Regulations, 2008
(NBFC Regulations).
VIS Credit Rating Company Limited has assigned Asset Management rating of AM2++ (December 31, 2022:
AM2++) as at December 31, 2023.
2 BASIS OF PRESENTATION
In accordance with the directives of the Federal Government regarding the shifting of the banking system to
Islamic modes, the State Bank of Pakistan (SBP) has issued various circulars from time to time. Permissible
forms of trade related modes of financing include purchase of goods by banks from their customers and
immediate resale to them at appropriate profit in price on deferred payment basis.
The purchases and sales arising under these arrangements are not reflected in these condensed interim
consolidated financial statements as such but are restricted to the amount of facility actually utilized 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 BASIS OF CONSOLIDATION
The consolidated financial statements incorporate the financial statements of the Bank and the financial
statements of the Subsidiary Company from the date from which control of the Subsidiary Company by the
Group commences until the date on which control ceases. The financial statements of the Subsidiary
Company are incorporated on a line-by-line basis and the investment held by the Bank is eliminated against
the corresponding share capital and pre-acquisition reserve of the Subsidiary Company in the consolidated
financial statements.
The financial statements of the Subsidiary Company are prepared for the same reporting period as the
Holding Company, using accounting policies that are generally consistent with those of the Holding Company.
Material intra-group balances and transactions are eliminated.
Associates are those entities in which the Group has significant influence, but not control, over the financial
and operating policies. Joint ventures are those entities over whose activities the Group has joint control
established by contractual agreement. Associates and joint ventures are accounted for using the equity
method.
4 STATEMENT OF COMPLIANCE
4.1 These condensed interim consolidated financial statements have been prepared in accordance with the
accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting
and reporting standards applicable in Pakistan for interim financial reporting comprise of:
- International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International
Accounting Standards Board (IASB) as 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 requirements of IAS 34, the requirements of the
Banking Companies Ordinance, 1962, the Companies Act, 2017 and the said directives, shall prevail.
4.2 As per the directive of the SBP through its letter BPRD (R&P-02)/625-99/2011/3744 dated March 28, 2011,
gain arising on bargain purchase of Pakistan operations of Royal Bank of Scotland (ex-RBS Pakistan) was
credited directly into equity as Non-distributable Capital Reserve (NCR). The SBP allowed the Bank to adjust
the amortisation of intangible assets against the portion of reserve which arose on account of such assets
identified as a result of such acquisition. Accordingly, during the period ended September 30, 2023, the Bank
has adjusted amortisation of intangible assets net of tax amounting to Rs. 58,456 million (period ended
September 30, 2022: Rs. 56,445 million) from the NCR.
4.3 These condensed interim consolidated financial statements do not include all the information and disclosures
required in the annual audited consolidated financial statements, and are limited based on the format
prescribed by the State Bank of Pakistan through BPRD Circular Letter No. 05 dated March 22, 2019 and IAS
34, and should be read in conjunction with the annual consolidated financial statements for the year ended
December 31, 2022.
that are effective in the current period
4.4.1 There are certain new and amended standards, interpretations and amendments that are mandatory for the
Group's accounting periods beginning on January 1, 2023 but are considered not to be relevant or do not
have any significant effect on the Group's operations and are therefore not detailed in these condensed
interim consolidated financial statements.

that are not yet effective
4.5.1 The following revised standards, amendments and interpretations with respect to the accounting and reporting
standards would be effective from the dates mentioned below against the respective standards, amendments
or interpretations:
Effective date (annual periods

Standards, interpretations or amendments beginning on or after)
- IFRS 9 - 'Financial Instruments' January 1, 2024*
- Amendment to IFRS 16 - Leases on sale and leaseback January 1, 2024
- Amendment to IAS 1- Non current liabilities with covenants January 1, 2024
The management is in the process of assessing the impact of these standards and amendments on the
condensed interim consolidated financial statements of the Group.
* As directed by SBP via BPRD Circular No. 7 of 2023 dated April 13, 2023, IFRS 9 Financial Instruments
application has been deferred and will be effective from January 1, 2024, for banks. SBP has issued the final
instructions on IFRS 9 (Application Instructions) via BPRD Circular no. 3 of 2022 dated July 5, 2022 for
ensuring smooth and consistent implementation of the standard across banks. Accordingly, the Bank
disclosed the impact of the application of IFRS 9 in Pakistan in its financial statements as at December 31,
2022.
The actual impact of adopting IFRS 9 on the Group’s financial statements in the year 2024 may not be
accurately estimated at this stage because it will be dependent on the financial instruments that the Group
would hold during next year and economic conditions at that time as well as accounting elections and
judgements that it will make in future.
4.6 The SBP vide BPRD Circular No. 02 of 2023 dated February 9, 2023, has specified the new reporting format
for financial statements of Banking Companies. The new format has revised the disclosure requirements and
will become applicable for the financial statements of the Bank from the first quarter of the year 2024.
4.7 As required under SBP Letter No. BPRD/LD-01/850/28853/2022-13054, the details of the net conventional
funded portfolio as at September 30, 2023 are as follows:
Note Rupees in '000

Assets
Investments 1,565,361
Financing 1,912,970
Liabilities
Due to financial institutions 345
Deposits and other accounts 5,601,818
Other liabilities 25.1 1,864,062
5 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied in the preparation of these condensed interim consolidated financial
statements are the same as applied in the preparation of the annual consolidated financial statements for the
year ended December 31, 2022, except for the change as detailed below:
Associates are all entities over which the Group has significant influence but not control. Certain mutual funds
are managed by the Subsidiary Company, hence, the Group has significant influence over such funds and
therefore investment in these mutual funds are considered as investment in associates in these condensed
interim consolidated financial statements. This change is applied prospectively as the impact is not
considered to be material.
6 BASIS OF MEASUREMENT
These condensed interim consolidated financial statements have been prepared under the historical cost
convention except for certain fixed assets and non-banking assets acquired in satisfaction of claims which
have been carried at revalued amounts, certain investments and derivative contracts which have been
marked to market and are carried at fair value, obligations in respect of staff retirement benefits and lease
liabilities which have been carried at present value and right-of-use assets which are initially measured at an
amount equal to the corresponding lease liabilities (adjusted for any lease payments and costs) and
depreciated over the respective lease terms.

7 FUNCTIONAL AND PRESENTATION CURRENCY
7.1 Items included in these condensed interim consolidated financial statements are measured using the currency
of the primary economic environment in which the Group operates. These condensed interim consolidated
financial statements are presented in Pakistani Rupees, which is the Group's functional and presentation
currency.
7.2 Figures have been rounded off to the nearest thousand of rupees unless otherwise stated.
8 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
The basis for accounting estimates adopted in the preparation of these condensed interim consolidated
financial statements is the same as that applied in the preparation of the annual consolidated financial
statements of the Bank for the year ended December 31, 2022, except for the change in impairment for equity
securities classified as available for sale for which impairment criteria for significant decline has been
changed. The impact of change is not material.
9 FINANCIAL RISK MANAGEMENT
The financial risk management objectives and policies adopted by the Bank are consistent with those
disclosed in the annual audited consolidated financial statements for the year ended December 31, 2022.
Un-audited Audited
2023 2022
10----------------------------------------------------------------------------------------------------------------------
CASH AND BALANCES WITH TREASURY BANKS Rupees '000 ------------------------------
In hand
- local currency 18,162,104 17,453,406
- foreign currencies 2,843,057 881,183
21,005,161 18,334,589
With State Bank of Pakistan in
- local currency current accounts 44,878,966 32,768,340
- foreign currency current accounts 2,788,184 2,536,026
- foreign currency deposit accounts 4,558,634 2,280,616
52,225,784 37,584,982
With National Bank of Pakistan in
- local currency current accounts 5,673,427 206,502
Prize bonds 10.1 3,205 4,525

78,907,577 56,130,598
10.1 These represent the national prize bonds received from customers for onward surrendering to SBP. The Group
as a matter of Shariah principle, does not deal in prize bonds.
Un-audited Audited
11 BALANCES WITH OTHER BANKS 2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
In Pakistan
- in current accounts 9,738 20,019
- in saving accounts 84 66
9,822 20,085
Outside Pakistan
- in current account 750,171 2,683,513
- in deposit account - 81,515
750,171 2,765,028
759,993 2,785,113
12 DUE FROM FINANCIAL INSTITUTIONS
Musharaka placement - 4,000,000

Repurchase agreement lendings (reverse repo) - 5,815,098
- 9,815,098

13 INVESTMENTS
13.1 Investments by type:
Un-audited Audited
Note September 30,2023 December 31, 2022
Cost / Provision Cost / Provision

Surplus / Carrying Surplus / Carrying
amortized for amortized for
(deficit) value (deficit) value
cost diminution cost diminution
------------------------------------------------------------------------------Rupees '000 ---------------------------------------------------------------------------------

Held-for-trading securities
Shares - - - - 234,475 - 591 235,066
- - - - 234,475 - 591 235,066
Available-for-sale securities
Federal Government securities 13.2 492,743,795 - (6,072,512) 486,671,283 406,535,788 - (4,225,759) 402,310,029
Shares 5,006,723 (1,958,620) 505,549 3,553,652 12,259,254 (1,297,552) (1,355,582) 9,606,120
Non Government debt securities 47,917,827 (519,291) 2,365,050 49,763,586 48,004,551 (519,291) 2,380,000 49,865,260
545,668,345 (2,477,911) (3,201,913) 539,988,521 466,799,593 (1,816,843) (3,201,341) 461,781,409
Held-to-maturity securities
Non Government debt securities 13.4 8,785,588 (1,418,207) - 7,367,381 6,329,593 (1,467,507) - 4,862,086
-
Associates * 13.5 3,215,719 - - 3,215,719 2,429,473 - - 2,429,473
Total Investments 557,669,652 (3,896,118) (3,201,913) 550,571,621 475,793,134 (3,284,350) (3,200,750) 469,308,034
* Related parties
Un-audited Audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
13.2 Investments given as collateral - market value
- Pakistan Investment Bonds - 5,307,116

- Ijarah Sukuks 40,305,450 29,866,500
40,305,450 35,173,616
13.3 Provision for diminution in value of investments
13.3.1 Opening balance 3,284,350 3,451,987

Charge / (Reversal)
Charge for the period / year 1,811,871 7,067
Reversals for the period / year (49,300) (85,824)
Reversals on disposals for the period / year (1,150,801) (88,880)
611,770 (167,637)
Closing Balance 3,896,120 3,284,350
13.3.2 Particulars of provision against debt securities

Un-audited Audited
September 30,2023 December 31, 2022
Non- Non-
Category of classification investments investments
------------------------------ Rupees '000 ------------------------------
Domestic
- Loss 1,937,498 1,937,498 1,986,798 1,986,798

13.4 The market value of securities classified as held-to-maturity as at September 30, 2023 amounted to Rs. 7,364
million (December 31, 2022: Rs. 4,862 million).
13.5 Movement of investment in associates
September 30,2023
Investment Investment /
Country of Investment
% at the (redemption) Share of Dividend
incorpo- at the end
Holding beginning during the profit / (loss) received
ration of the year
of the period period
------------------------------------------------------------------------------------------------------------- Rupees '000 ---------------------------------------------------------
Associates
Faysal Government Securities Fund Pakistan - 97,449 (97,449) - - -
Faysal Islamic Pension Fund - Debt Pakistan 80.55 33,633 - 4,626 - 38,259
Faysal Islamic Pension Fund - Equity Pakistan 92.50 28,439 - 2,508 - 30,947
Faysal Halal Amdani Fund Pakistan 4.04 - 1,635,381 39,114 (2,991) 1,671,504
Faysal Islamic Sovereign Fund - FISP-I Pakistan 3.75 - 245,775 13,726 (8,628) 250,873
Faysal Islamic Pension Fund - Money Market Pakistan 34.26 33,639 - 5,041 - 38,680
Faysal Islamic Savings Growth Fund Pakistan 33.75 844,471 (81,923) 77,691 (12,315) 827,924
Faysal Islamic Special Income Fund - FISIP-I Pakistan 1.00 107,601 (125,129) 18,996 (9) 1,459
Faysal Islamic Stock Fund Pakistan 19.51 96,437 93,570 (96,634) - 93,373
Faysal Pension Fund - Debt Pakistan 86.95 33,215 - 4,469 - 37,684
Faysal Pension Fund - Equity Pakistan 89.99 27,905 - 2,489 - 30,394
Faysal Pension Fund - Money Market Pakistan 71.08 33,791 - 4,361 - 38,152
Faysal Savings Growth Fund Pakistan - 720,379 (720,379) - - -
Faysal Special Savings Fund - FSSP-I Pakistan 34.31 - 12,083 541 - 12,624
Faysal Islamic Financial Growth Fund - FIFGP-I Pakistan 26.05 - 106,433 3,682 (1,606) 108,509
Faysal Special Savings Fund - FSSP-II Pakistan 98.66 - 11,499 601 - 12,100
Faysal Special Savings Fund - FSSP-III Pakistan 64.83 108,161 (93,792) 685 - 15,054
Faysal Stock Fund Pakistan 3.34 264,353 (255,101) (1,069) - 8,183
2,429,473 730,968 80,827 (25,549) 3,215,719
December 31, 2022

Investment Investment /
Country of Investment
% at the (redemption) Share of Dividend
incorpo- at the end
Holding beginning during the profit received
ration of the year
of the period period
------------------------------------------------------------------------------------------------------------- Rupees '000 ---------------------------------------------------------

Associates
Faysal Government Securities Fund Pakistan 94.42 143,163 (48,390) 2,676 - 97,449
Faysal Islamic Pension Fund - Debt Pakistan 88.83 30,367 - 3,266 - 33,633
Faysal Islamic Pension Fund - Equity Pakistan 98.80 30,226 - (1,787) - 28,439
Faysal Islamic Pension Fund - Money Market Pakistan 76.09 30,351 - 3,288 - 33,639
Faysal Islamic Savings Growth Fund Pakistan 32.21 - 837,052 22,664 (15,245) 844,471
Faysal Islamic Special Income Fund - FISIP-I Pakistan 99.93 - 106,174 1,784 (357) 107,601
Faysal Islamic Stock Fund Pakistan 20.79 - 102,825 (6,388) - 96,437
Faysal Pension Fund - Debt Pakistan 85.11 30,120 - 3,095 - 33,215
Faysal Pension Fund - Equity Pakistan 84.47 30,168 - (2,263) - 27,905
Faysal Pension Fund - Money Market Pakistan 83.73 30,320 - 3,471 - 33,791
Faysal Saving Growth Fund Pakistan 29.02 1,076,852 (383,499) 77,115 (50,089) 720,379
Faysal Special Savings Fund - FSSP-I Pakistan - 106,209 (106,209) - - -
Faysal Asset Allocation Fund Pakistan - 72,442 (72,442) - - -
Faysal Special Savings Fund - FSSP-III Pakistan 99.92 - 106,661 1,500 - 108,161
Faysal Stock Fund Pakistan 31.63 - 283,148 (18,795) - 264,353
1,580,218 825,320 89,626 (65,691) 2,429,473

14 ISLAMIC FINANCING AND RELATED ASSETS - NET
Note Performing Non-performing Total

Un-audited Audited Un-audited Audited Un-audited Audited
September 30, December 31, September 30, December 31, September 30, December 31,
2023 2022 2023 2022 2023 2022
---------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------------------------------
Murabaha financing and related assets
Murabaha Financing 14.1 59,235,387 10,718,692 133,542 119,278 59,368,929 10,837,970
Advance against Murabaha financing 788,704 1,675,896 - - 788,704 1,675,896
Inventory related to Murabaha 719,957 203,694 - - 719,957 203,694
60,744,048 12,598,282 133,542 119,278 60,877,590 12,717,560
Running Musharaka financing
Running Musharaka 130,612,718 119,430,547 543,966 - 131,156,684 119,430,547
Istisna financing and related assets

Istisna 31,900,813 31,800,700 215,750 70,000 32,116,563 31,870,700
Advance against Istisna 11,610,157 20,927,551 133,895 236,295 11,744,052 21,163,846
Inventory related to Istisna 8,711,494 6,205,350 44,271 - 8,755,765 6,205,350
52,222,464 58,933,601 393,916 306,295 52,616,380 59,239,896
Tijarah financing and related assets

Tijarah 1,572,471 2,268,921 5,500 5,500 1,577,971 2,274,421
Advance against Tijarah 230,600 467,445 - - 230,600 467,445
Inventory related to Tijarah 1,020,300 1,346,223 - - 1,020,300 1,346,223
2,823,371 4,082,589 5,500 5,500 2,828,871 4,088,089
Musawamah financing and related assets
Musawamah 14,983,724 143,720 123,776 6,960 15,107,500 150,680
Advance against Musawamah 1,385 - - - 1,385 -
Inventory related to Musawamah 590 3,980 - - 590 3,980
14,985,699 147,700 123,776 6,960 15,109,475 154,660
Salam financing and related assets
Salam 100,000 100,000 1,200 1,200 101,200 101,200
Advance against Salam 117,206 83,236 - - 117,206 83,236
217,206 183,236 1,200 1,200 218,406 184,436
Ijarah financing and related assets
Fixed assets Ijarah financing - net - 32,109 - - - 32,109
- 32,109 - - - 32,109
Diminishing Musharaka financing and
related assets
Diminishing Musharaka 198,533,852 208,760,418 5,355,739 4,374,326 203,889,591 213,134,744
Advanced against Diminishing Musharaka 19,887,126 15,556,470 - - 19,887,126 15,556,470
218,420,978 224,316,888 5,355,739 4,374,326 223,776,717 228,691,214
Wakala Istithmar financing and
related assets
Wakala Istithmar 6,302,669 - - - 6,302,669 -
6,302,669 - - - 6,302,669 -
Tawwaruq 1,069,810 13,167,553 41,107 38,717 1,110,917 13,206,270

Advance against Islamic export refinance 2,631,459 3,419,522 181,590 223,152 2,813,049 3,642,674
Musharaka 32,605 82,618 7,762 8,288 40,367 90,906
Bai salam 49,697 99,342 - - 49,697 99,342
Islamic financing and related assets - Gross 490,112,724 436,493,987 6,788,098 5,083,716 496,900,822 441,577,703
Other financing 746,207 15,397,264 15,948,254 16,614,667 16,694,461 32,011,931
490,858,931 451,891,251 22,736,352 21,698,383 513,595,283 473,589,634
Less: provision against financings 14.4

- Specific - - (18,613,228) (18,557,417) (18,613,228) (18,557,417)
- General (4,152,671) (771,609) - - (4,152,671) (771,609)
(4,152,671) (771,609) (18,613,228) (18,557,417) (22,765,899) (19,329,026)
Financing- net of provision 486,706,260 451,119,642 4,123,124 3,140,966 490,829,384 454,260,608

Un-audited Audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
14.1 Murabaha receivable - gross 14.1.2 60,877,590 11,529,227

Less: Deferred murabaha income 14.1.3 (365,588) (350,063)
Profit receivable shown in other assets (1,143,073) (341,194)
Murabaha financing 59,368,929 10,837,970
14.1.1 The movement in Murabaha financing during the period / year

is as follows:
Opening balance 10,837,970 31,630,824
Sales during the period / year 178,111,210 111,886,384
Adjusted during the period / year (129,580,251) (132,679,238)
Closing balance 59,368,929 10,837,970
14.1.2 Murabaha sale price 60,877,590 11,529,227

Murabaha purchase price (59,368,929) (10,837,970)
1,508,661 691,257
14.1.3 Deferred murabaha income
Arising during the period / year 4,100,082 4,602,165
Less: recognised during the period / year (4,084,557) (4,527,881)
14.2 Particulars of Islamic financing and related assets - net

- in local currency 512,914,239 473,053,505
- in foreign currencies 681,044 536,129
513,595,283 473,589,634
14.3 Islamic financing and related asset - net includes Rs. 22,736 million (December 31, 2022: Rs. 21,698 million)
which have been placed under non-performing status as detailed below:-
Un-audited Audited
Category of classification Non-

Non-performing
Provision performing Provision
loans
loans
---------------------------------------- Rupees '000 ----------------------------------------

Domestic
- Other assets especially mentioned 369,143 - 204,426 70
- Substandard 1,637,456 89,150 504,838 82,646
- Doubtful 774,901 186,978 858,706 242,963
- Loss 19,954,852 18,337,100 20,130,413 18,231,738
Total 22,736,352 18,613,228 21,698,383 18,557,417

14.4 Particulars of provision against Islamic financing and related assets
Un-audited Audited
Specific General Total Specific General Total
----------------------------------------------------------------- Rupees '000 ----------------------------------------------------------------
Opening balance 18,557,417 771,609 19,329,026 19,544,542 945,573 20,490,115
Exchange adjustment 144,914 - 144,914 117,020 - 117,020

Charge for the period / year 983,598 3,381,062 4,364,660 1,085,432 - 1,085,432
Reversals during the period / year (968,905) - (968,905) (1,368,953) (173,964) (1,542,917)
14,693 3,381,062 3,395,755 (283,521) (173,964) (457,485)
Amounts written off (103,796) - (103,796) (820,624) - (820,624)
Closing balance 18,613,228 4,152,671 22,765,899 18,557,417 771,609 19,329,026
14.4.1 The Group maintains general provision in accordance with the applicable requirements of the Prudential
Regulations for Consumer Financing and House Financing issued by the SBP.
The Group in addition to the requirements of Prudential Regulations has maintained a general provision of Rs
3,300 million (December 31, 2022: Rs. Nil) against financing made on prudent basis, in view of prevailing of
economic conditions.
14.4.2 As allowed by the SBP, the Group has availed benefit of forced sale value (FSV) of collaterals held as security
of Rs 1,879.886 million (December 31, 2022: Rs 1,862.991 million) relating to financing while determining the
provisioning requirement against non-performing financing as at September 30, 2023. The additional profit
arising from availing the FSV benefit (net of tax) as at September 30, 2023 which is not available for
distribution as either cash or stock dividend to shareholders approximately amounted to Rs 958.742 million
(December 31, 2022: Rs 950.125 million).
14.4.3 Although the Holding Company has made provision against its non-performing portfolio as per the category of
classification of the loans, the Holding Company still holds enforceable collateral against certain non-
performing loans in the event of recovery through litigation. These securities comprise of charge against
various tangible assets of the borrower including land, building and machinery, stock in trade, etc.
Un-audited Audited
Note
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
15 FIXED ASSETS
Capital work-in-progress 15.1 3,253,822 2,392,116

Property and equipment 34,968,307 32,804,038
38,222,129 35,196,154
Civil works 153,856 346,816

Equipment 2,401,379 1,742,100
Vehicles 68,429 42,164
Land and building 442,066 40,242
3,253,822 2,392,116

Un-audited
15.2 Additions to fixed assets 2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
The following additions have been made to fixed assets during the period:
Capital work-in-progress 4,204,798 2,480,284
Property and equipment
Building on leasehold land 173,485 5,332

Electrical, office and computer equipment 1,533,405 533,568
Vehicles 188,423 -
Right-of-use assets - land and building 1,862,206 2,272,541
Leasehold land 133,111 2,568
Civil works 960,920 440,464
5,205,363 3,304,686
Total 9,410,161 5,784,970
15.3 Disposal of fixed assets
The net book value of fixed assets disposed off during the period is as follows:
Furniture and fixture 14 96

Electrical, office and computer equipment 1,611 912
Vehicles 37,700 1,033
Others 171 1,131
Total 39,496 3,172
Un-audited Audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
16 INTANGIBLE ASSETS
Capital work-in-progress 16.1 733,765 711,373
Computer software 1,115,707 826,050

Customer relationship 389,748 451,345
Management rights 114,600 114,600
Goodwill 238,485 238,484
1,858,540 1,630,479
Total 2,592,305 2,341,852

Computer software 733,765 711,373
Un-audited
2023 2022
----------------------------------------------------------------------------------------------------------------------
16.2 Additions to intangible assets Rupees '000 ------------------------------
The following additions have been made to intangible assets during the period:
Computer software - directly purchased 523,953 728,743

Un-audited Audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
17 OTHER ASSETS
Profit / return accrued in local currency - net of provision 60,723,042 26,608,166

Profit / return accrued in foreign currencies - net of provision 139,909 35,156
Advances, deposits, advance rent and other prepayments 2,350,778 1,366,333
Non-banking assets acquired in satisfaction of claims 812,984 1,041,276
Mark to market gain on forward foreign exchange contracts 311,500 383,842
Acceptances 22 17,547,041 6,930,359
Credit cards and other products fee receivable 843,782 566,289
Receivable from brokers against sale of shares - 268,523
Receivable from 1Link (Private) Limited 1,784,560 3,302,249
Rent and amenities receivable 161,036 43,456
Rebate receivable - net 319,708 118,625
Defined benefit plan asset 168,825 166,681
Remittances receivable from Western Union 2,091,936 1,668,492
Others 564,418 794,650
87,906,156 43,369,445
Less: provision held against other assets 17.1 (328,963) (326,637)
Other assets - net of provision 87,577,193 43,042,808
Surplus on revaluation of non-banking assets acquired in
satisfaction of claims 23 1,852,729 2,126,204
Other assets - total 89,429,922 45,169,012
17.1 Provision held against other assets

Receivable from customers 52,799 50,473
Security deposits 22,994 22,994
Others 177,822 177,822
328,963 326,637
17.1.1 Movement in provision held against other assets
Charge for the period / year 2,731 -

2,326 (30,336)
18 BILLS PAYABLE
In Pakistan 15,168,857 21,309,950

Outside Pakistan - -
15,168,857 21,309,950

Un-audited Audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
19 DUE TO FINANCIAL INSTITUTIONS
Secured
To the State Bank of Pakistan (SBP) under:
- long term financing facility for renewable power energy (RPE) 345 9,502
- scheme of financing facility for storage of agricultural produce - 5,400
- Islamic export refinance scheme - part I and II 24,551,876 31,795,302
- refinance scheme for payment of wages and salaries - 885,681
- Islamic financing for renewable energy 6,659,895 6,914,074
- Islamic long term financing facility 9,902,930 12,407,019
- Islamic temporary economic refinance scheme 11,804,982 30,853,102
- Islamic refinance facility for combating COVID-19 19,059,051 232,778
- Islamic refinance facility for storage of agricultural produce 536,495 370,804
- Scheme of Islamic Rupee-based discounting facility EFS/IERS 657,056 547,230
73,172,630 84,020,892
Repurchase agreement borrowings - 5,318,855
Due to SBP under Open Market Operations (OMO) 39,011,626 29,061,914
Due to other financial institutions 3,412,181 1,440,559
Total secured 115,596,437 119,842,220
Unsecured
Overdrawn nostro accounts 2,047,901 1,662,176
Total unsecured 17,297,901 30,292,176
132,894,338 150,134,396
20 DEPOSITS AND OTHER ACCOUNTS

Un-audited Audited
In foreign In foreign
In local currency Total In local currency Total
currencies currencies
----------------------------------------------------------- Rupees '000 -----------------------------------------------------------
Customers
Current deposits 265,780,750 30,549,554 296,330,304 233,289,655 26,500,047 259,789,702
Savings deposits 233,289,864 22,439,300 255,729,163 207,105,501 23,004,040 230,109,541
Term deposits 209,357,303 1,942,436 211,299,739 154,758,216 887,679 155,645,895
Margin deposits 13,281,887 55,937 13,337,825 7,661,317 229,752 7,891,069
721,709,804 54,987,227 776,697,031 602,814,689 50,621,518 653,436,207
Financial institutions
Current deposits 21,862,255 89,863 21,952,118 9,405,616 65,052 9,470,668
Savings deposits 144,870,939 - 144,870,939 118,123,798 - 118,123,798
Term deposits 6,040,547 - 6,040,547 525,550 - 525,550
172,773,740 89,863 172,863,603 128,054,964 65,052 128,120,016
894,483,545 55,077,089 949,560,634 730,869,653 50,686,570 781,556,223

Un-audited Audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
21 DEFERRED TAX ASSETS / (LIABILITIES)
Taxable temporary differences on

- surplus on revaluation of fixed assets (2,112,389) (1,957,237)
- surplus on revaluation of non-banking assets (17,767) (15,591)
- surplus on revaluation of investments 1,531,225 1,389,433
- fair value adjustment relating to net assets acquired upon amalgamation (211,973) (194,079)
- fair value adjustment relating to net assets acquired upon business combination - (52,496)
- accelerated tax depreciation (148,044) (38,930)
- fair valuation of previously held equity interest in the Subsidiary Company - (13,118)
(958,948) (882,018)
Deductible temporary differences on
- provision for diminution in the value of investments 843,819 (43,573)
- provision against advances, off balance sheet etc. (32,825) 77,100
- provision against other assets 125,297 123,959
- others - (19,556)
936,291 137,930
(22,657) (744,088)
22 OTHER LIABILITIES
Return on deposits and other dues:

- Payable in local currencies 11,812,343 6,735,294
- Payable in foreign currencies 24,789 5,357
Unearned commission and income on bills discounted 1,135,711 982,430
Accrued expenses 4,207,845 3,334,375
Acceptances 17 17,547,041 6,930,359
Dividend payable including unclaimed dividends 313,522 256,594
Mark to market loss on forward foreign exchange contracts 3,136,383 46,611
Current taxation (provision less payments) 1,411,354 1,013,387
Charity fund balance 2,077 1,634
Provision against off-balance sheet obligations 22.1 290,160 87,700
Withholding tax payable 497,842 360,125
Federal excise duty payable 93,708 90,817
Payable to brokers against purchase of shares 2,268 1,235,367
Fair value of derivative contracts 25.1 1,864,062 1,507,683
Payable related to credit cards and other products 1,389,769 114,064
Lease liability against right-of-use assets 12,689,416 11,814,937
Funds held as security 306,918 288,573
Payable to 1Link (Private) Limited 447,846 359,297
Takaful payable 57,710 60,888
Clearing and settlement accounts 16,430,022 14,940,611
Others 511,697 481,506
74,172,483 50,647,609

Un-audited Audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
22.1 Provision against off-balance sheet obligations
Charge for the period / year 202,828 3,596

202,460 (17,194)
23 SURPLUS ON REVALUATION OF ASSETS - NET OF TAX
Surplus / (deficit) on revaluation of:

- available for sale securities (3,201,913) (3,201,341)
- fixed assets 12,149,607 12,341,050
- non-banking assets acquired in satisfaction of claims 1,852,729 2,126,204
10,800,423 11,265,913
Deferred tax on surplus / (deficit) on revaluation of:
- available for sale securities 1,571,133 1,376,577
- fixed assets (2,126,857) (1,957,237)
- non-banking assets acquired in satisfaction of claims (17,767) (15,591)
(573,491) (596,251)
10,226,932 10,669,662
24 CONTINGENCIES AND COMMITMENTS
Guarantees 24.1 42,599,382 38,920,372

Commitments 24.2 182,271,179 168,295,114
Other contingent liabilities 24.3 4,122,244 4,122,244
228,992,805 211,337,730
24.1 Guarantees:
Financial guarantees 6,039,094 5,725,594

Performance guarantees 9,849,111 12,053,909
Other guarantees 26,711,177 21,140,869
42,599,382 38,920,372
24.2 Commitments:
Documentary credits and short-term trade-related transactions

- letters of credit 72,606,680 52,543,910
Commitments in respect of:

- forward foreign exchange contracts 24.2.1 63,764,393 57,184,237
- forward government securities transactions 24.2.2 40,311,150 41,226,248
- derivatives - cross currency and interest rate swaps (notional principal) 24.2.3 1,846,774 1,510,401
- extending credit (irrevocable) 24.4 2,322,617 15,473,238
Commitments for acquisition of:

- operating fixed assets 944,729 193,455
- intangible assets 474,836 163,625
182,271,179 168,295,114

Un-audited Audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
24.2.1 Commitments in respect of forward foreign exchange contracts
Purchase 52,843,029 50,919,583

Sale 10,921,364 6,264,654
63,764,393 57,184,237
24.2.2 Commitments in respect of forward government securities transactions
Purchase 40,311,150 35,400,890

Sale - 5,825,358
40,311,150 41,226,248
24.2.3 Commitments in respect of derivatives
Sale 1,846,774 1,510,401
24.3 Other contingent liabilities
24.3.1 Holding Company:
Suit filed by a customer for recovery of alleged losses suffered which

is pending in the Honorable High Court of Sindh. The Holding Company’s
legal advisors are confident that the Holding Company has a strong case 2,510,000 2,510,000
Indemnity issued favouring the Honorable High Court in one of the cases 457,543 457,543
Tax liability of gain on bargain purchase on the acquisition of ex-RBS Pakistan (i) 1,154,701 1,154,701
4,122,244 4,122,244
(i) Income tax assessments of the Group have been finalised upto the tax year 2022 (accounting year
ended December 31, 2021). Income tax return for tax year 2023 (accounting year ended December
31, 2022) will be filed by the Group within stipulated timeline.
The department and the holding company has disagreement on a matter relating to taxability of gain
on bargain purchase on the acquisition of ex-RBS Pakistan. The additional tax liability on the matter
amounts to Rs. 1,154.701 million (December 31, 2022: Rs. 1,154.701 million). The Commissioner
Inland Revenue (Appeals) [(CIR(A)] had deleted the said additional tax liability, however the income
tax department had filed an appeal with the Appellate Tribunal Inland Revenue (ATIR) against the order
of CIR(A). During the current period, the ATIR passed an order and maintained the decision of the
CIR(A) in favour of the Bank that gain on bargain purchase is not taxable. Subsequently, the
department has challenged the order in Honorable High Court of Sindh. However, the management of
the Bank is confident that the matter will be decided in the Bank's favour and accordingly, no provision
has been recorded in these consolidated financial statements in respect of this matter.
(ii) There are certain claims against the group not acknowledged as debt amounting to Rs 29,904 million
(December 31, 2022: Rs 29,453 million). These mainly represent counter claims filed by the borrowers
for restricting the Group from disposal of assets (such as mortgaged / pledged assets kept as
security), cases where the Group was proforma defendant for defending its interest in the underlying
collateral kept by it at the time of financing, certain cases filed by ex-employees of the Bank for
damages sustained by them consequent to the termination from the Group's employment and cases
for damages towards opportunity losses suffered by the customers due to non-disbursements of
running finance facility as per the agreed terms. The above also includes an amount of Rs 25,299
million (December 31, 2022: 25,299 million) in respect of a suit filed against the Group for declaration,
recovery of monies, release of securities, rendition of account and damages.
Based on legal advice and / or internal assessments, the management is confident that the above
matters will be decided in the Group's favour and accordingly no provision has been made in these
condensed interim consolidated financial statements.

24.3.2 Subsidiary Company:
(i) The income tax returns of the Subsidiary Company for the tax years 2004 to 2022 (financial year ended
June 30, 2004 to December 31, 2021) have been filed and are deemed to have been assessed under
the Income Tax Ordinance, 2001, unless selected by the taxation authorities for audit purposes. The
tax year 2005 (financial year ended June 30, 2005) has been selected by the taxation authorities for
audit purpose. The tax authorities have passed an order under section 221 of the Income Tax
Ordinance, 2001, whereby they have determined an additional liability of Rs. 0.913 million for the tax
year 2005 on account of apportionment of expenses and disallowance of certain expenses. The
Subsidiary Company has paid Rs. 0.414 and has filed an appeal against the order before the
Commissioner Appeals, the proceedings of which are underway. The remaining tax liability on these
matters is Rs. 0.498 million. The management of the Subsidiary Company is confident that the decision
in respect of these matters will be decided in the Company's favour and accordingly no provision for
the above has been made in these consolidated financial statements in respect of this liability.
(ii) The income tax department has issued orders and show cause notices under section 221 of the
Income Tax Ordinance, 2001 for recovery of Workers Welfare Fund (WWF) aggregating to Rs 0.818
million in respect of tax years 2008 and 2013. The details of orders and show cause along with the
management actions are listed below:
Order / show WWF Demand

Tax years Status
cause references Rupees '000
Order u/s 221 dated Appeal pending before the
2008
June 30, 2014 Commissioner Appeals 315
Show cause u/s 221 dated Showcause notice has been
2013
May 7, 2014 responded to 503
818
The management is of the view that WWF was not applicable for tax year 2008. In tax year 2013,
subsequent to clarification decision by the SHC, the management has not admitted WWF charge in the
annual return of income. The management of the Subsidiary Company is confident that the decision in
respect of these matters will be decided in the Subsidiary Company's favour and accordingly no
provision for the above has been made in these condensed interim consolidated financial statements
in respect of this liability.
(iii) The Punjab Revenue Authority issued show cause notice No.PRA/AM/61/2205/ dated March 12, 2014
to Faysal Asset Management Limited requiring the Subsidiary Company to obtain registration /
enrolment and to pay sales tax amounting to Rs. 6.055 million from July 2013 to March 2014 under the
Punjab Sales Tax on Services Act, 2012 with effect from May 22, 2013 on management fee earned in
Punjab.
In respect of this, the Subsidiary Company, jointly with other Asset Management Companies together
with their respective collective investment schemes through their trustees, has filed a petition on July 8,
2014 in the SHC challenging the above notice. The Court has ordered suspension of the show cause
notice till the next hearing of appeal in their order dated July 10, 2014. The next date of hearing has not
yet been decided. The management of the Subsidiary Company is confident that the decision in
respect of these matters will be decided in the Subsidiary Company's favour and accordingly no
provision for the above has been made in these condensed interim consolidated financial statements
in respect of this liability.
(iv) During the prior period, the audit of the tax year 2013 (financial year ended June 30, 2013) was
completed by the taxation authorities. The tax authorities have passed an order under section 122(5A)
of the Income Tax Ordinance, 2001, whereby they have determined an additional liability of Rs. 4.964
million for the tax year 2013 on account of apportionment of expenses, salary expenses and hardware
and software expense. The management filed an appeal before the Commissioner Inland Revenue
(Appeals) [CIR(A)] on the grounds of disallowances made by the Additional Commissioner Inland
Revenue. The CIR(A) remanded back a few expenses while ordered against various other expenses
for which the Subsidiary Company has decided to appeal before the Appellate Tribunal Inland
Revenue (ATIR). The management of the Subsidiary Company is confident that the decision in respect
of these matters will be decided in the Subsidiary Company's favour and accordingly no provision for
the above has been made in these condensed interim consolidated financial statements in respect of
this liability.

(v) During the prior period, the audit of the tax year 2014 (financial year ended June 30, 2014) was
completed by the taxation authorities. The tax authorities have passed an order under section 122(5A)
of the Income Tax Ordinance, 2001, whereby they have determined an additional liability of Rs. 2.673
million for the tax year 2014 on account of apportionment of expenses, time barred payables,
expenses claimed on provisional basis, salary expenses, marketing and advertising expenses,
brokerage and commission expenses, legal and professional charges and hardware and software
expenses. The management had decided to file an appeal before the Commissioner Inland Revenue
(Appeals) [CIR(A)] on the grounds of disallowances made by the Additional Commissioner Inland
Revenue. During the current period the CIR(A) issued an order whereby the earlier order passed by
the tax authorities under section 122(5A) of the Income Tax Ordinance, 2001, has been annulled on the
basis of being time barred, and consequentially the demand for additional liability has been
relinquished. The management has decided to file an appeal before the Appellate Tribunal Inland
Revenue (ATIR) to contest the order passed by DCIR. The management of the Subsidiary Company is
confident that the decision in respect of these matters will be decided in the Subsidiary Company's
favour and accordingly no provision for the above has been made in these condensed interim
consolidated financial statements in respect of this liability.
(vi) During the prior period, the Deputy Commissioner Inland Revenue (DCIR) has passed an order under
section 182(1) of the Income Tax Ordinance, 2001 for the tax year 2018, whereby the DCIR has
imposed a penalty of Rs. 0.833 million on account of non submission of statement required to be filed
by the Subsidiary Company under bilateral or multilateral convention under section 165B of the Income
Tax Ordinance, 2001. The management has filed an appeal before the CIR(A) on the subject matter
and has paid an amount of Rs 0.083 million being 10% of the total amount of penalty imposed under
the order and has thus obtained an automatic stay on the subject matter. The Company has received
an appellate order from the CIR(A), dismissing the appeal filed by the Company. The management has
filed an appeal before the Appellate Tribunal Inland Revenue (ATIR). As a matter of abundant caution
the Company has recognised a provision for the remaining amount of Rs. 0.749 million in these
condensed interim consolidated financial statements.
(vii) During the year ended December 31, 2022, one of the customers of the Company has claimed an
amount of Rs 245 million from the Subsidiary Company for loss of profit and principal against amount
kept by him in discretionary portfolio and CIS with the Subsidiary Company.
The Subsidiary Company based on an internal assessment and legal opinion is confident that no likely
claim will be payable by the Subsidiary Company. Accordingly, no provision has been made in these
consolidated financial statements in respect of this claim.
24.4 Commitments to extend credits
The Holding Company makes commitments to extend credit (including to related parties) in the normal course
of its business but these being revocable commitments do not attract any significant penalty or expense if the
facilities are unilaterally withdrawn except for Rs. 2,323 million (December 2022: Rs. 15,473 million) which are
irrevocable in nature.
Un-audited Audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
25 DERIVATIVE INSTRUMENTS
Cross currency swaps (notional principal) 1,846,774 1,510,401

25.1 Product analysis
September 30, 2023 (Un-Audited)

Counterparties
Notional principal Mark to market loss
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------

With banks for
Hedging - -
Market making 232,571 (191,055)

Hedging - -
Market making 1,614,203 (1,673,007)
Total
Hedging - -
Market making 1,846,774 (1,864,062)

Counterparties
Notional principal Mark to market loss
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------

With banks for
Hedging - -
Market making 209,709 (281,984)

Hedging - -
Market making 1,300,692 (1,225,699)
Total
Hedging - -
Market making 1,510,401 (1,507,683)
Un-audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
26 PROFIT / RETURN EARNED
On:
Financing 66,125,366 36,307,162
Investments 66,153,785 32,727,265
Due from financial institutions 1,065,728 1,293,672
Balances with banks 6,628 1,159
Securities purchased under resale agreements 6,865 252,942
133,358,372 70,582,200

Un-audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
27 PROFIT / RETURN EXPENSED
On:
Deposits 59,706,812 30,034,958
Securities sold under repurchase agreements 143,381 4,881,490
Shariah Compliant Open Market Operations and Ceiling facility from SBP 10,671,451 2,133,612
Other short term borrowings 19,151 311,042
Due to SBP 3,800,325 1,286,540
Lease liability against right-of-use assets 1,128,322 908,175
Cost of foreign currency swaps against foreign currency deposits / dues 3,754,857 2,980,981
84,207,717 43,650,568
28 FEE AND COMMISSION INCOME
Branch banking customer fees 812,808 706,160

Consumer finance related fees 465,459 428,356
Card related fees (debit and credit cards) 3,166,063 2,013,192
Credit related fees 29,904 8,218
Investment banking fees 188,740 233,971
Commission on trade 489,739 463,306
Commission on guarantees 150,962 131,314
Commission on cash management 113,163 68,722
Commission on remittances including home remittances 582,802 483,760
Commission on bancatakaful 99,331 146,961
Commission on sale of funds unit 200,708 129,387
Management fee 418,605 329,171
Sales load 152,205 116,898
Others 90,010 54,186
6,960,499 5,313,602
29 (LOSS) / GAIN ON SECURITIES
Realised - net 29.1 (1,945,145) (1,214,296)

Unrealised - held for trading - net - 72,463
(1,945,145) (1,141,833)
29.1 Realised (loss) / gain on:
Federal Government securities (305,347) (65,430)

Shares (1,639,798) (1,148,866)
(1,945,145) (1,214,296)
30 OTHER INCOME
Rent on property 135,043 144,802

Gain on sale of fixed assets - net 14,765 26,377
Notice pay 4,651 4,749
Others 549 483
155,008 176,411

Un-audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
31 OPERATING EXPENSES
Total compensation expense 10,994,601 7,621,469
Property expense
Rent and taxes 179,716 266,994
Takaful 104,959 65,565
Utilities cost 1,349,366 1,010,033
Security (including guards) 1,039,543 723,617
Repair and maintenance (including janitorial charges) 784,323 506,087
Depreciation on non-banking assets 3,761 3,724
Depreciation on right-of-use assets 1,419,272 1,222,343
Others 192,890 114,457
5,699,008 4,326,938
Information technology expenses
Software maintenance 2,971,065 1,505,485
Hardware maintenance 373,012 253,458
Amortisation 233,295 137,717
Network charges 233,609 199,705
4,215,617 2,375,369
Other operating expenses
Directors' fees and allowances 120,535 97,623
Legal and professional charges 125,703 157,501
Outsourced services costs - staff 573,283 355,125
Travelling and conveyance 214,785 122,497
NIFT clearing charges 60,940 32,530
Depreciation 502,765 362,274
Training and development 52,888 12,195
Postage and courier charges 236,002 176,840
Communication 687,586 283,244
Marketing, advertisement and publicity 1,282,102 691,845
Donations 113,215 90,257
Auditors remuneration 26,044 29,402
Takaful 585,733 822,710
Stationery and printing 518,350 371,028
Bank fees and charges 160,900 97,232
Brokerage and commission 3,136 8,948
Deposit protection premium 532,404 452,995
Credit card bonus points redemption 355,868 152,699
Others 677,609 516,954
6,829,848 4,833,899
27,739,074 19,157,675
32 OTHER CHARGES
Penalties imposed by the State Bank of Pakistan 4,146 17,386
33 PROVISIONS AND WRITE-OFFS - NET
Provision / (reversal of provision) against diminution in value of investments 13.3 611,770 (129,046)
Provision / (reversal of provision) against financing 14.4 3,395,755 (374,515)
Provision / (reversal of provision) against other assets 17.1.1 2,326 (30,335)
Bad debts written off directly 44,462 101,252
Recoveries of written off / charged off bad debts (361,007) (283,712)
Provision / (reversal of provision) against off balance sheet obligations 22.1 202,460 (19,373)
Impairment charged for non banking asset 41,525 -
3,937,291 (735,729)

Un-audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
34 TAXATION
Current 12,886,172 7,504,319

Prior years 125,000 (1,038,275)
Deferred (799,053) 1,002,304
12,212,119 7,468,348
35 BASIC / DILUTED EARNINGS PER SHARE

Un-audited
For the quarter ended For the nine month ended
September30, September 30, September 30, September 30,
2023 2022 2023 2022
----------------------------- Rupees '000 -----------------------------
Profit after tax for the period 4,648,900 3,461,889 12,308,407 7,819,583
----------------- Number of shares in thousands -----------------
Weighted average number of ordinary shares 1,517,697 1,517,697 1,517,697 1,517,697
-------------------------------- Rupees --------------------------------
Basic earnings per share 3.06 2.28 8.11 5.15
35.1 Diluted earnings per share has not been presented as the Group does not have any convertible instruments in
issue at September 30, 2023 and September 30, 2022 which would have any effect on the earnings per share
if the option to convert is exercised.
36 FAIR VALUE MEASUREMENTS
The fair value of quoted securities other than those classified as held to maturity, is based on quoted market
price. Quoted securities classified as held to maturity are carried at cost. The fair value of unquoted equity
securities, other than investments in associates and subsidiaries, is determined on the basis of the break-up
value of these investments as per their latest available audited financial statements.
The fair value of unquoted debt securities, fixed term loans, other assets, other liabilities, fixed term deposits
and borrowings cannot be calculated with sufficient reliability due to the absence of a current and active
market for these assets and liabilities and reliable data regarding market rates for similar instruments.
36.1 Fair value of financial assets
The Group measures fair values using the following fair value hierarchy that reflects the significance of the
inputs used in making the measurements:
Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or
liabilities.
Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from
prices).
Level 3: Fair value measurements using input for the asset or liability that are not based on observable
market data (i.e. unobservable inputs).

The table below analyses financial instruments measured at the end of the reporting period by the level in the
fair value hierarchy into which the fair value measurement is categorised:

On-balance sheet financial instruments --------------------------- Rupees '000 ---------------------------

Investments
Shares 3,446,113 107,539 - 3,553,652

Investments
Non-Government debt securities (note 12.4) - 7,367,381 - 7,367,381



On-balance sheet financial instruments --------------------------- Rupees '000 ---------------------------

Investments
Shares 8,489,609 1,351,312 265 9,841,186

Investments


The Group's policy is to recognize transfers into and out of the different fair value hierarchy levels at the date
when the event or change in circumstances require the Group to exercise such transfers.


Fair values of Pakistan Investment Bonds are derived using the PKRV / PKFRV rates.
Pakistan Investment Bonds
Fair values of GoP Ijarah Sukuk are derived using the PKISRV rates announced by the Financial Market
Ijarah Sukuk Association (FMA) through Reuters. These rates denote an average of quotes received from different pre-
defined / approved dealers / brokers.
Break-up value determined on the basis of the NAV of a company using the latest available audited financial
Unlisted ordinary shares
statements.
Term Finance Certificates (TFCs) and
Fair values of TFCs and Sukuk certificates are determined using the MUFAP or PSX rates.
Sukuk Certificates
The valuation has been determined by interpolating the mark-to-market currency rates announced by the
Forward foreign exchange contracts
State Bank of Pakistan.
The Bank enters into derivative contracts with various counterparties. Derivatives that are valued using
valuation techniques with market observable inputs are mainly interest rate swaps, cross currency swaps
Derivative instruments and forward foreign exchange contracts. The most frequently applied valuation techniques include forward
pricing and swap models, using present value calculations.
Units of mutual funds are valued using the net asset value (NAV) announce by the Mutual Funds
Mutual funds
Association of Pakistan (MUFAP).

Land and buildings are revalued by professionally qualified valuers as per the accounting policy disclosed in
Fixed assets (land and building) the financial statements of the Holding Company for the year ended December 31 2022.
Non-banking assets acquired in NBAs are valued by professionally qualified valuers as per the accounting policy disclosed in the financial
satisfaction of claims statements of the Holding Company for the year ended December 31 2022.
The valuations, mentioned above, are conducted by the valuation experts appointed by the Holding Company
which are also on the panel of the Pakistan Banks' Association (PBA). The valuation experts use a market
based approach to arrive at the fair value of the Holding Company’s properties. The market approach uses
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
quantitative disclosure of sensitivity has not been presented in these condensed interim consolidated financial
statements.
37 SEGMENT INFORMATION
37.1 Segment details with respect to business activities
2023
--------------------------------------------------------------- Rupees '000 ---------------------------------------------------------------
nine months ended September 30, 2023
(Un-audited)
External funded revenue (35,899,244) 47,031,444 46,720,093 152,349 (8,773,160) 49,231,482
Inter segment revenue - net 73,071,001 (44,701,922) (44,507,032) (147,920) 16,285,873 -
External non-funded revenue 5,711,261 1,107,977 1,304,162 4,961 (627,305) 7,501,056
Total Income 42,883,018 3,437,499 3,517,223 9,390 6,885,408 56,732,538
Segment direct expenses 25,231,559 1,906,427 420,851 459,389 256,230 28,274,456

Inter segment expense allocation 496,237 (316,756) (29,530) (149,951) - -
Total expenses 25,727,796 1,589,671 391,321 309,438 256,230 28,274,456
Provisions (13,496) 281,531 660,951 (534,961) 3,543,266 3,937,291
Profit before tax 17,168,718 1,566,297 2,464,951 234,913 3,085,912 24,520,791

2023
Statement of financial position --------------------------------------------------------------- Rupees '000 ---------------------------------------------------------------
as at September 30, 2023
(Un-audited)
Cash and bank balances 27,322,273 - 52,345,134 - 163 79,667,570
Due from financial institutions - - - - - -
Investments 150,000 9,765,020 541,310,598 3,099,116 143,005 554,467,739
Financing - performing 95,801,762 386,325,794 - - 8,731,375 490,858,931
- Financing- provisions (3,286,701) (4,586,517) - (11,510,165) (3,382,516) (22,765,899)
Others 22,158,629 11,631,443 40,216,839 138,797 56,098,648 130,244,356
Total assets 877,202,750 408,969,245 631,913,949 2,285,634 (669,058,647) 1,251,312,931
Due to Financial institutions 10,805,676 68,391,887 53,696,775 - - 132,894,338

Deposits and other accounts 812,381,303 65,337,864 - 412,314 71,429,153 949,560,634
Net inter segment borrowing - 274,323,638 584,593,925 1,861,415 (860,778,978) -
Others 54,015,771 915,856 (4,789,892) 11,903 39,210,359 89,363,997
Total liabilities 877,202,750 408,969,245 633,500,808 2,285,632 (750,139,466) 1,171,818,969
Equity - - (1,586,859) - 81,080,821 79,493,962
Total equity and liabilities 877,202,750 408,969,245 631,913,949 2,285,632 (669,058,645) 1,251,312,931
2022
Profit and loss account for the --------------------------------------------------------------- Rupees '000 ---------------------------------------------------------------
nine months ended September 2022
(un-audited)
External funded revenue (19,442,046) 24,358,248 21,977,943 173,838 (115,246) 26,952,737
Inter segment revenue - net 38,158,346 (21,956,003) (20,511,019) 209,324 4,099,352 -
External non-funded revenue 4,456,267 1,540,515 1,645,276 (196,663) (358,681) 7,086,714
Total Income 23,172,567 3,942,760 3,112,200 186,499 3,625,425 34,039,451
Segment direct expenses 11,240,135 600,494 219,963 124,251 7,302,385 19,487,228

Inter segment expense allocation 6,495,987 572,737 119,724 113,937 (7,302,385) -
Total expenses 17,736,122 1,173,231 339,687 238,188 - 19,487,228
Provisions (399,274) 417,798 (65,454) (684,932) (3,867) (735,729)
Profit before tax 5,835,719 2,351,731 2,837,967 633,243 3,629,292 15,287,952

ended December 30, 2022
(audited)
Cash and bank balances 19,076,053 - 39,839,531 - 127 58,915,711
Due from financial institutions - - 9,815,098 - - 9,815,098
Investments 100,000 7,374,123 460,915,716 3,205,813 996,732 472,592,384
Financing- performing 101,531,845 342,314,662 - - 8,044,744 451,891,251
- Financing- provisions (2,901,661) (4,304,986) - (11,990,203) (132,176) (19,329,026)
Others 16,922,119 8,226,633 13,875,498 (1,820,592) 45,503,360 82,707,018

Total assets 789,382,426 359,197,265 523,148,291 (147,255) (596,574,258) 1,075,006,469
Due to Financial institutions 9,147,902 78,339,254 62,647,240 - - 150,134,396

Deposits and other accounts 729,757,619 51,202,938 - 156,164 439,502 781,556,223
Net inter segment borrowing - 229,099,012 459,708,176 (302,624) (688,504,564) -
Others 50,476,905 556,061 2,638,487 (795) 19,030,989 72,701,647
Total liabilities 789,382,426 359,197,265 524,993,903 (147,255) (669,034,073) 1,004,392,266
Equity - - (1,845,612) - 72,459,815 70,614,203
Total equity and liabilities 789,382,426 359,197,265 523,148,291 (147,255) (596,574,258) 1,075,006,469
Contingencies and commitments 20,702,799 87,097,691 173,099,305 1,507,592 (71,069,657) 211,337,730

38 RELATED PARTY TRANSACTIONS
82
The Group has related party transactions with its parent, associates, employee benefit plans and its directors and key management personnel.
The Group enters into transactions with related parties in the ordinary course of business and on substantially the same terms as for comparable transactions with
persons 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 executives / officers is determined in accordance with the terms of their appointment.
Third Quarter
Details of transactions with related parties during the period, other than those which have been disclosed elsewhere in these condensed interim consolidated
financial statements are as follows:

Key Key
Other Other
Parent Directors management Associates Parent Directors management Associates
personnel personnel
September 30, 2023

---------------------------------------------------------------------------------------------------------------------- Rupees '000 ----------------------------------------------------------------------------------------------------------------------
Investments
Opening balance - - - 2,429,473 3,268,466 - - - 1,580,218 3,904,683
Investment made during the period / year - - - 34,218,245 - - - - 2,529,308 12,215,000
Investment redeemed / sold during the
period / year - - - (33,487,277) (1,253,428) - - - (1,703,988) (12,851,217)

Equity method adjustment - - - 55,278 - - - - 23,935 -
Closing balance - - - 3,215,719 2,015,038 - - - 2,429,473 3,268,466
Provision for diminution in value of investments - - - - 1,940,037 - - - - 1,984,337
Islamic Financing and Related Assets

Opening balance - 7 539,123 - 1,392,080 - - 531,323 - 1,709,934
Addition during the period / year - 100 564,958 - - - 7 281,835 - 617,654
Repaid during the period / year - - (434,156) - (234,942) - - (274,035) - (935,508)
Closing balance - 107 669,925 - 1,157,138 - 7 539,123 - 1,392,080
Provision held against financing - - - - 413,687 - - - - 457,987

Key Key
Other Other
personnel personnel
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ----------------------------------------------------------------------------------------------------------------------
Other assets
Profit / return accrued - - 5,536 - 25,904 - - 1,403 - 79,923
Defined benefit plan asset - - - - 168,825 - - - - 168,825
Remuneration receivable - - - 53,617 - - - - 6,987 -
Receivable against reimbursement of expenses - - - 244,574 - - - - 10,634 -
Receivable from defined contribution plan - - - - 6,036 - - - - -
Front end load receivable - - - 27,136 - - - - 118 -
Preliminary expenses and floatation costs receivable - - - 5,516 - - - - 1,432 -
Others - - - - 1,784,560 - - - - 3,302,249
- - 5,536 330,843 1,985,325 - - 1,403 19,171 3,550,997
Deposits and other accounts

Opening balance 4,595,199 58,656 131,791 57,393 26,038,101 328,397 51,148 231,277 15,350 9,800,472
Received during the period / year 656,431 159,392 1,775,489 579,300,338 26,732,968 4,595,017 88,829 2,472,226 3,243,262 603,296,210
Withdrawn during the period / year (5,251,448) (124,527) (1,802,764) (546,067,864) (50,855,005) (328,215) (81,321) (2,571,712) (3,201,219) (587,058,581)
Closing balance 182 93,521 104,517 33,289,867 1,916,064 4,595,199 58,656 131,791 57,393 26,038,101
Other liabilities
Profit / return payable - 973 406 572,680 16,575 - 429 669 355 319,447
Other liabilities 4,923,232 - - - 1,811,176 - - - - 359,297
4,923,232 973 406 572,680 1,827,751 - 429 669 355 678,744
September 30, 2023

Contingencies and commitments
Trade related commitments * - - - - 204,046 - - - - 10,603
- - - - 204,046 - - - - 10,603
* represents outstanding guarantee
Third Quarter
38.1 Balances pertaining to parties that were related at the beginning of the period but ceased to be so related during any part of the current period are not reflected as
part of the closing balance. The same are accounted for through the movement presented above.
83
84
RELATED PARTY TRANSACTIONS
September 30, 2023 (Un-audited) September 30, 2022
Key Key
Other Other
personnel personnel
Third Quarter
---------------------------------------------------------------------------------------------------------------------- Rupees '000 --------------------------------------------------------------------------------------------------------
Income
Profit / return earned - - 25,686 - 86,446 - 7,730 20,371 - 73,397
Fee and commission income - 297 291 526,266 12,178 - 61 68 55,102 470,161
Dividend income - - - 31,034 49,661 - - - 50,089 94,057
Loss on sale of securities - - - (13,671) 26,660 - - 231 (35,256) 1,440
September 30, 2023

Expense
Profit / return expensed - 5,795 5,570 1,678,338 113,575 - 2,915 2,156 727 747,840
Reimbursement of expenses - - - 389,105 - - - - 24,240 229,059
Director's fee and other expenses - 125,735 - - - - 97,623 - - -
Remuneration - - 743,089 - 2,755 - - 641,492 - 1,138

Subscription Fee - - - - 5,346 - - - - 4,605
Charge for defined benefit plan - - - - 214,520 - - - - 185,849
Contribution to defined contribution plan - - - - 293,519 - - - - 216,246
Donations made during the period - - - - 113,215 - - - - 88,257
(Reversal) / Provision against in investment - - - - (44,300) - - - - -
Others
Shares / units purchased during the period - - - 34,218,245 - - - - 2,629,312 13,696,875
Shares / units sold during the period - - - 33,487,277 1,279,577 - - - 2,300,433 13,684,293
Government securities purchased during the period - - 26,800 - - - - 245,765 - 1,738,360
Government securities sold during the period - - 86,301 - 1,932,162 - - 250,004 - 3,145,468
Contribution to defined benefit plan - - - - 148,295 - - - - 8,279

Un-audited Audited
2023 2022
---------------------------------------------------------------------------------------------------------------------- Rupees '000 ------------------------------
39 CAPITAL ADEQUACY, LEVERAGE RATIO & LIQUIDITY REQUIREMENTS
Minimum capital requirement (MCR):
Paid-up capital (net of losses) 15,176,965 15,176,965
Capital adequacy ratio (CAR):
Eligible common equity tier 1 (CET 1) capital 65,218,548 55,723,079

Eligible additional tier 1 (ADT 1) capital - -
Total eligible tier 1 capital 65,218,548 55,723,079
Eligible tier 2 capital 13,657,535 11,155,424
Total eligible capital (tier 1 + tier 2) 78,876,083 66,878,503
Risk weighted assets (RWAs):

Credit risk 290,781,999 306,729,896
Market risk 29,405,531 51,822,917
Operational risk 72,519,488 72,519,488
Total 392,707,018 431,072,300
Common equity tier 1 capital adequacy ratio 16.61% 12.93%

Tier 1 Capital adequacy ratio 16.61% 12.93%
Total Capital adequacy ratio 20.09% 15.51%
Leverage ratio (LR):
Eligible tier-1 capital 65,218,548 55,723,079

Total exposures 1,434,772,742 1,237,985,505
Leverage ratio (in %) 4.55% 4.50%
Liquidity coverage ratio (LCR):
Total high quality liquid assets 482,300,301 368,386,611

Total net cash outflow 322,630,460 206,353,920
Liquidity coverage ratio (Ratio) 1.495 1.785
Net stable funding ratio (NSFR):
Total available stable funding 785,419,647 706,803,978

Total required stable funding 468,901,126 416,877,978
Net stable funding ratio (in %) 167.50% 169.55%

40 GENERAL
Comparative information has been re-classified, re-arranged or additionally incorporated in these condensed
interim consolidated financial statements, wherever necessary, to facilitate comparison and to conform with
changes in presentation in the current period. There have been no significant reclassifications during the
period.
41 NON-ADJUSTING EVENTS AFTER THE REPORTING DATE
The Board of Directors of the Holding Company, in their meeting held on October 26, 2023 declared an interim
cash dividend of Re. 1 per share (10%) for the nine months ended September 30, 2023. This is in addition to
Re. 1 already paid during the year bringing the total dividend for nine months to Rs. 2 per share (September
30, 2022: Rs. 6).
42 DATE OF AUTHORISATION FOR ISSUE
These condensed interim consolidated financial statements were authorized for issue on October 26, 2023 by
the Board of Directors of the Holding Company.

FBL September 2023

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Contents

Unconsolidated Financial Statements

Condensed Interim Unconsolidated Statement of Financial Position 15

Condensed Interim Unconsolidated Profit and Loss Account 16

Condensed Interim Unconsolidated Statement of Comprehensive Income 17

Condensed Interim Unconsolidated Statement of Changes in Equity 18

Condensed Interim Unconsolidated Cash Flow Statement 19

Notes to the Condensed Interim Unconsolidated Financial Statements 20

Consolidated Financial Statements

Condensed Interim Consolidated Statement of Financial Position 53

Condensed Interim Consolidated Profit and Loss Account 54

Condensed Interim Consolidated Statement of Comprehensive Income 55

Condensed Interim Consolidated Statement of Changes in Equity 56

Condensed Interim Consolidated Cash Flow Statement 57

Notes to the Condensed Interim Consolidated Financial Statements 58

September 30, 2023 Third Quarter 1

Mian Muhammad Younis Chairman/Non-Executive Director

Board Audit & Corporate Governance Committee

Mr. Ali Munir Chairman

Board Risk Management Committee

Mr. Imtiaz Ahmad Pervez Chairman

Recruitment Nomination and Remuneration Committee

Mr. Ahmed Abdulrahim Mohamed Abdulla Bucheery Chairman

Board Strategy Committee

Mian Muhammad Younis Chairman

2 Third Quarter September 30, 2023

Ms. Sadia Khan Chairperson

Mufti Muhammad Mohib-ul-Haq Siddiqui Chairman Shariah Board

Syed Majid Ali Chief Financial Officer

Mr. Aurangzeb Amin Company Secretary & Head of Legal

M/s. KPMG Taseer Hadi & Co., Chartered Accountants Auditors

M/s. Mohsin Tayebaly & Co., Advocate Legal Advisors

Registered Office Share Registrar

September 30, 2023 Third Quarter 3

4 Third Quarter September 30, 2023

Consumer Price Index (CPI) increased by 31.4% on year-on-year basis in September

September 30, 2023 Third Quarter 5

Earnings per share (Rupees) 7.94 5.05 57.2

As a result of prevailing circumstances of historically high inflation, a depreciating PKR relative

6 Third Quarter September 30, 2023

Both the rating agencies assigned ‘Stable’ outlook to the bank.

September 30, 2023 Third Quarter 7

President & CEO Chairman

8 Third Quarter September 30, 2023

‫ہا ا س ‪ 2023 30‬ا م ہ‪ 9‬ہ‬ ‫رڈآ فڈا ز ‪26‬ا ‪2023‬‬

‫ا ا د‬ ‫ا ں‬ ‫ادا‬ ‫ز‬ ‫ا ام‬ ‫ناور‬ ‫رڈ اورا‬

‫ں‬ ‫ز‬ ‫ا‬ ‫اور‪FBL‬‬ ‫ا ر‬ ‫رڈ‬ ‫ح‪،‬‬

‫ڈا ز اس‬ ‫رش‬ ‫ر‬ ‫‪ ،‬رڈ آڈٹ اور ر ر‬ ‫ں‬ ‫ا ‪2017‬‬

‫‪September 30, 2023‬‬ ‫‪Third Quarter‬‬ ‫‪9‬‬

‫‪58.1%‬‬ ‫‪22‬‬ ‫اور ‪ADR‬د‬ ‫رو‬ ‫‪491‬‬ ‫‪ 8.1%‬ا‬ ‫‪FBL‬‬

‫ط داور‬ ‫م ۔ا‬ ‫ر ا‬ ‫رز‬ ‫ا اورا ا‬

‫ر لاورا اط‬ ‫دى‬ ‫ا‬ ‫ر ۔‬ ‫‪FBL‬ا ر د د‬ ‫‪ 2024‬دا‬

‫)‪ (PACRA‬درج ذ ادا را‬ ‫ا‬ ‫ٹر‬ ‫ن‬ ‫)‪(VIS‬اور‬ ‫‪ VIS‬ٹر‬

‫‪10‬‬ ‫‪Third Quarter‬‬ ‫‪September 30, 2023‬‬

‫ا‬ ‫ر د‬ ‫)‪(PBT‬‬ ‫ر رڈ ا ز‬ ‫ان‪ 24.1‬رو‬ ‫ا ادى ر‬

‫و‬ ‫ورك ا‬ ‫اور ا‬ ‫ر‬ ‫رو‬ ‫‪،‬ا ڈا‬ ‫ا‬

‫رو‬ ‫‪1.3‬‬ ‫ت‬ ‫ا ا ت ‪ FBL‬ا‬ ‫ں و‬ ‫اور‬ ‫طڈ زٹ‬

‫‪September 30, 2023‬‬ ‫‪Third Quarter‬‬ ‫‪11‬‬