UBL Unconsolidated Financial Statements Sept 2024

United Bank Limited
UNCONSOLIDATED CONDENSED
INTERIM FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2024
(UN-AUDITED)
UNITED BANK LIMITED
DIRECTORS’ REPORT TO THE MEMBERS
On behalf of the Board of Directors, we are pleased to present the financial statements of United Bank
Limited (UBL) for the nine months ended September 30, 2024.
Performance Overview
UBL recorded an unconsolidated Profit Before Tax (PBT) of Rs. 107.8 billion for the nine months ended
September 30, 2024, representing a 36% year on year growth. Profit After Tax (PAT) stood at Rs. 55.0 billion
for 9M'24, compared to Rs. 40.9 billion in 9M'23 with Earnings per share (EPS) of Rs. 44.92 compared to
Rs. 33.38 for the corresponding period last year.
UBL reported consolidated PAT of Rs. 49.7 billion (9M'23: Rs. 42.6 billion) with consolidated EPS of Rs. 40.12
(9M'23: Rs. 34.05).
The Board of Directors of UBL declared an interim cash dividend of Rs. 11.0 per share in their meeting in
Islamabad held on October 23, 2024, along with the results for the nine months ended September 30, 2024.
Net mark-up income stood at Rs. 105.2 billion, while non-mark-up income was recorded at Rs. 61.3 billion
in 9M’24, with overall gross revenues at Rs. 166.5 billion for 9M’24, an increase of 29% over 9M’23. Fee-
based revenues maintained the overall business momentum with a 22% increase over the same period last
year. Domestic current deposits averaged more than Rs. 1 trillion, increasing by 24% year on year, with
enhanced focus on network sales and service levels.
The Bank's operating expenses recorded a 23% increase over 9M'23 to Rs. 58.0 billion. Staff costs stood at
Rs. 23.3 billion, increasing by 28%, resulting from growth across branches and hiring mainly within front
office functions. Property related expenses were recorded at Rs. 8.3 billion, up 14%.
The Bank recorded a net provision reversal of Rs. 1.5 billion for 9M’24 versus a net provision charge of Rs.
2.0 billion in the same period last year.
Capital Ratios - Consolidated

UBL remains well capitalized with adequate buffers over regulatory requirements. The consolidated
CAR stood at 19.2% at Sep’24 (Dec’23: 14.6%), 6.7% over the minimum regulatory requirement of
12.5%. The Common Equity Tier 1 (CET-1) ratio stood at 13.7% at Sep’24 (Dec’23: 10.5%). Tier 1 Capital
ratio was measured at 14.5% at Sep’24 (Dec’23: 11.1%).
Advances to Deposits Ratio

With declining inflation and policy rate cuts, the bank has developed a sizeable advances pipeline, most of
which are expected to materialize in Q4’ 2024. Based on the current status and pipeline in hand,
management is confident of closing the year with an Advances to Deposits Ratio of above 50%. As such, no
provision has been made this quarter concerning the enhanced tax on income from Federal Government
Securities.
Page |1
UNITED BANK LIMITED
DIRECTORS’ REPORT TO THE MEMBERS
Credit Rating
VIS Credit Rating Company Limited (VIS) re-affirmed the entity ratings of UBL at ‘‘AAA / A-1+” (Triple A / A-
One Plus) in June 2024. Moreover, UBL’s Additional Tier-1 (ADT-1) TFC has also been re-affirmed at ‘AA+’
(Double A plus). Outlook on the assigned ratings are ‘Stable’.
Future Outlook
Being a leading financial institution, UBL is committed to reinvesting in core businesses and supporting the
Pakistan economy as it moves towards stability. UBL has continued to expand its market positioning with a
growing momentum in 2024. Branch Banking, across both conventional and Islamic segments, remains the
core of the franchise where the aim has been to expand our customer base, build deposit market share
and increase focus on trade. We have continued to invest in our branch network and front-line staff in
order to provide the best customer service to our valued clients. With the roll out of our front-end digital
platform, we aim to deliver a unified customer experience across all our customer touchpoints. UBL's most
valuable asset remains its people, and the bank continues to invest in their growth and development. We
remain committed to delivering a strong return on equity to our shareholders and superior service levels
to our customers while acquiring and retaining the best available talent across the Bank.
Acknowledgements
On behalf of the Board of Directors, we would like to express our appreciation to UBL’s shareholders
and customers for their continued trust in the UBL brand and to the UBL staff for their commitment and
dedication. We would also like to extend our gratitude to the Government of Pakistan, the State Bank
of Pakistan, the Securities and Exchange Commission of Pakistan and other regulatory bodies for their
continuous guidance and support.
Muhammad Jawaid Iqbal Daniel Michael Howlett

President & CEO Director
Islamabad,
October 23, 2024
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UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT SEPTEMBER 30, 2024
Note (Un-audited) (Audited)

September 30, December 31,
2024 2023
--------------------------------- (Rupees in '000) -----------------------
ASSETS
Cash and balances with treasury banks 6 361,962,168 277,330,217
Balances with other banks 7 24,584,246 30,700,751
Lendings to financial institutions 8 1,076,737 34,447,852
Investments 9 6,425,371,416 4,385,216,671
Advances 10 619,267,724 613,565,526
Property and equipment 11 78,230,583 65,087,643
Right-of-use assets 12 9,573,081 8,497,029
Intangible assets 13 2,471,272 2,458,834
Deferred tax assets 14 - -
Other assets 15 188,034,275 157,692,979
7,710,571,502 5,574,997,502
LIABILITIES
Bills payable 17 30,084,944 27,897,141
Borrowings 18 4,303,955,362 2,815,470,554
Deposits and other accounts 19 2,828,473,060 2,341,017,855
Lease liabilities 20 11,535,379 10,339,867
Subordinated debt 21 10,000,000 10,000,000
Deferred tax liabilities 14 44,957,306 1,921,889
Other liabilities 22 168,834,473 115,849,665
7,397,840,524 5,322,496,971
NET ASSETS 312,730,978 252,500,531
REPRESENTED BY:
Share capital 12,241,797 12,241,797
Reserves 111,857,934 107,800,978
Surplus on revaluation of assets 23 90,431,585 41,965,460
Unappropriated profit 98,199,662 90,492,296
312,730,978 252,500,531
CONTINGENCIES AND COMMITMENTS 24
The annexed notes 1 to 44 form an integral part of these unconsolidated condensed interim financial statements.
Syed Manzoor Hussain Zaidi Muhammad Jawaid Iqbal Shazia Syed Daniel Michael Howlett Sir Mohammed Anwar Pervez, OBE, HPk
Chief Financial Officer President & Director Director Chairman
Chief Executive Officer
UNCONSOLIDATED CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UN-AUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024
July - July - January - January -
September September September September
2024 2023 2024 2023
Note --------------------------------- (Rupees in '000) ---------------------------------
Mark-up / return / interest earned 26 310,741,852 147,350,437 825,895,798 337,213,439

Mark-up / return / interest expensed 27 259,148,402 109,574,476 720,664,403 230,576,398
Net mark-up / interest income 51,593,450 37,775,961 105,231,395 106,637,041
Non mark-up / interest income

Fee and commission income 28 5,844,125 4,290,282 15,893,508 13,061,887
Dividend income 266,556 219,638 1,189,692 1,211,050
Foreign exchange income 3,294,805 2,228,965 9,662,474 9,136,511
(Loss) / income from derivatives (16,176) 168,164 (41,021) 28,648
Gain / (loss) on securities - net 29 5,930,797 142,748 24,074,130 (1,360,303)
Capital gain on derecognition of financial assets measured at amortised cost - - 2,894,427 -
Other income 30 7,260,557 241,348 7,618,066 835,267
Total non mark-up / interest income 22,580,664 7,291,145 61,291,276 22,913,060
Total income 74,174,114 45,067,106 166,522,671 129,550,101
Non mark-up / interest expenses

Operating expenses 31 22,201,169 17,057,279 57,961,029 46,962,707
Workers' Welfare Fund 982,752 515,376 2,215,724 1,550,062
Other charges 32 155 28,138 32,966 32,203
Total non mark-up / interest expenses 23,184,076 17,600,793 60,209,719 48,544,972
Profit before credit loss allowance 50,990,038 27,466,313 106,312,952 81,005,129
Credit loss allowance / provisions / (reversals) and write-offs - net 33 893,529 (1,006,165) (1,473,236) 1,954,473
Profit before taxation 50,096,509 28,472,478 107,786,188 79,050,656
Taxation 34 24,556,195 13,926,053 52,800,301 38,185,072
Profit after taxation 25,540,314 14,546,425 54,985,887 40,865,584
------------------------------------ (Rupees) ---------------------------------------
Earnings per share - basic and diluted 35 20.86 11.88 44.92 33.38
UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)
July - July - January - January -
September September September September
2024 2023 2024 2023
--------------------------------- (Rupees in '000) ---------------------------------
Profit after taxation for the period 25,540,314 14,546,425 54,985,887 40,865,584
Other comprehensive income
Items that may be reclassified to profit and loss account

in subsequent periods
Effect of translation of net investment in overseas branches (249,127) 525,347 (1,441,633) 18,066,802
Movement in surplus / (deficit) on revaluation of debt investments through
FVOCI - net of tax 49,790,714 471,080 50,306,596 (8,201,095)
49,541,587 996,427 48,864,963 9,865,707
Items that will not be reclassified to profit and loss account

in subsequent periods
Movement in surplus on revaluation of equity investments through FVOCI -

net of tax 532,553 284,933 1,370,373 387,965
Movement in surplus on revaluation of property and equipment - net of tax (65) 140 5,457 7,190
Movement in surplus on revaluation of non-banking assets - net of tax - - - -
532,488 285,073 1,375,830 395,155
Total comprehensive income for the period 75,614,389 15,827,925 105,226,680 51,126,446
UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY
Surplus / (Deficit) on revaluation

Capital
reserve - Statutory Unappropriated
Share capital Property and Non-banking Total
exchange reserve Investments profit
Equipment assets
translation
-----------------------------------------------------------------------------------------------------
Note (Rupees in '000) -----------------------------------------------------------------------------------------------------
Balance as at January 01, 2023 (Audited) 12,241,797 44,694,292 41,560,081 (20,679,865) 39,765,799 - 91,438,152 209,020,256
Total comprehensive income for the nine months ended
September 30, 2023
Profit after taxation for the nine months ended September 30, 2023 - - - - - - 40,865,584 40,865,584
Other comprehensive income - net of tax - 18,066,802 - (7,813,130) 7,190 - - 10,260,862
Total comprehensive income for the nine months ended September 30, 2023 - 18,066,802 - (7,813,130) 7,190 - 40,865,584 51,126,446
Transfer from surplus on revaluation upon
disposal to unappropriated profit - net of tax - - - - (1,474,233) - 1,474,233 -
Transfer of incremental depreciation from surplus on revaluation
of property and equipment to unappropriated profit - net of tax - - - - (44,691) - 44,691 -
Transfer to statutory reserve - - 4,086,558 - - - (4,086,558) -
Transactions with owners, recorded directly in equity
Final cash dividend - December 31, 2022 declared
subsequent to the year end at Rs. 9.0 per share - - - - - - (11,017,617) (11,017,617)
Interim cash dividend - March 31, 2023
declared at Rs. 11.0 per share - - - - - - (13,465,977) (13,465,977)
Interim cash dividend - June 30, 2023
Balance as at September 30, 2023 (Un-audited) 12,241,797 62,761,094 45,646,639 (28,492,995) 38,254,065 - 91,786,531 222,197,131
Total comprehensive income for the three months
ended December 31, 2023
Profit after taxation for the three months ended December 31, 2023 - - - - - - 12,314,829 12,314,829
Other comprehensive income - net of tax - (1,838,238) - 32,246,662 (480) - 1,046,604 31,454,548
Total comprehensive income for the three months ended December 31, 2023 - (1,838,238) - 32,246,662 (480) - 13,361,433 43,769,377
disposal to unappropriated profit - net of tax - - - - - - - -
Transfer of incremental depreciation from revaluation
of fixed assets to unappropriated profit - net of tax - - - - (41,792) - 41,792 -
Interim cash dividend - September 30, 2023

- - - - - - (13,465,977) (13,465,977)
Balance as at December 31, 2023 (Audited) 12,241,797 60,922,856 46,878,122 3,753,667 38,211,793 - 90,492,296 252,500,531
Effect of reclassification on adoption of IFRS 9 (net of tax) - - - (3,214,765) - - 3,214,765 -
Effect of adoption of IFRS 9 - ECL (net of tax) - - - - - - (4,598,302) (4,598,302)

3.2.4 - - - (3,214,765) - - (1,383,537) (4,598,302)
Balance as at January 01, 2024 -as restated 12,241,797 60,922,856 46,878,122 538,902 38,211,793 - 89,108,759 247,902,229
Total comprehensive income for the nine months ended September 30, 2024
Profit after taxation for the nine months ended September 30, 2024 - - - - - - 54,985,887 54,985,887
Other comprehensive income - net of tax - (1,441,633) - 51,676,969 5,457 - - 50,240,793
Total comprehensive income for the nine months ended September 30, 2024 - (1,441,633) - 51,676,969 5,457 - 54,985,887 105,226,680
disposal to unappropriated profit - net of tax - - - - - - - -
Transfer of incremental depreciation from surplus on revaluation
of property and equipment to unappropriated profit - net of tax - - - - (62,912) - 62,912 -
Transfer of net loss on disposal of FVOCI equity investments
from surplus to unappropiateed profit - net of tax - - - 61,376 - (61,376)
Final cash dividend - December 31, 2023 declared
subsequent to the year end at Rs. 11.0 per share - - - - - - (13,465,977) (13,465,977)
Interim cash dividend - March 31, 2024
Interim cash dividend - June 30, 2024
Balance as at September 30, 2024 (Un-audited) 12,241,797 59,481,223 52,376,711 52,277,247 38,154,338 - 98,199,662 312,730,978
UNCONSOLIDATED CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)
January - September January -
2024 September 2023
-------------- (Rupees in '000) --------------

CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxation 107,786,188 79,050,656
Less: Dividend income 1,189,692 1,211,050
106,596,496 77,839,606
Adjustments:
Depreciation on fixed assets 4,053,854 3,098,439
Depreciation on Islamic financing against leased assets (Ijarah) 58,652 105,607
Depreciation on right-of-use assets 1,782,454 1,695,646
Depreciation on non-banking assets acquired in satisfaction of claims 2,420 2,259
Amortisation 716,175 748,237
Workers' Welfare Fund - charge 2,215,724 1,550,062
Provision for retirement benefits 1,145,073 536,469
Provision for compensated absences 119,882 64,941
Credit loss allowance against loans and advances - net (1,142,648) (3,040,735)
Credit loss allowance against off - balance sheet obligations - net 46,676 69,047
Credit loss allowance for diminution in value of investments - net (250,046) 5,094,684
Interest expense on lease liability against right-of-use assets 1,077,013 893,342
(Gain) / loss on sale of Ijarah assets - net (533) 626
Gain on sale of fixed assets - net (148,042) (396,875)
Gain on sale of subsidiary (7,083,501) -
Bad debts written-off directly 36,211 36,501
Unrealised gain on revaluation of investments classified as FVTPL (261,073) (13,750)
Credit loss allowance against other assets (11,149) (31,905)
Other credit loss allowance / write-offs 161,798 106,355
2,518,940 10,518,950
109,115,436 88,358,556
(Increase) / Decrease in operating assets
Lendings to financial institutions 33,371,115 (140,651,785)
Securities classified as FVTPL 2,936,771 10,267,977
Advances (5,957,740) 321,510,442
Other assets (excluding advance taxation) (34,308,513) (93,632,842)
(3,958,367) 97,493,792
Increase / (decrease) in operating liabilities
Bills payable 2,187,803 (14,142,301)
Borrowings 1,488,484,808 792,538,851
Deposits and other accounts 487,455,205 389,028,059
Other liabilities 38,602,636 45,682,877
2,016,730,452 1,213,107,486
2,121,887,521 1,398,959,834
Receipts on account of staff retirement benefits 2,808,765 (514,710)
Income taxes paid (43,115,580) (31,957,499)
Net cash flow generated from operating activities 2,081,580,706 1,366,487,625
CASH FLOW FROM INVESTING ACTIVITIES

Net investments in securities classified as FVOCI (1,991,646,143) (1,231,031,924)
Net investments in amortized cost securities 38,842,561 50,664,538
Net investments in subsidiaries and associates 1,855,222 141,640
Dividend income received 1,156,617 1,069,792
Proceeds realised on sale of subsidiary 9,053,275 -
Investment in property and equipments and intangible assets (17,988,176) (5,371,395)
Sale proceeds from disposal of property and equipments 168,370 1,918,660
Sale proceeds from disposal of ijarah assets 27,645 5,302
Effect of translation of net investment in overseas branches (1,441,633) 18,066,802
Net cash flow used in investing activities (1,959,972,262) (1,164,536,585)
CASH FLOW FROM FINANCING ACTIVITIES
Payment of lease liability against right-of-use assets (2,693,923) (2,422,031)

Dividend paid (40,399,075) (45,818,530)
Net cash flow used in financing activities (43,092,998) (48,240,561)
Increase / (decrease) in cash and cash equivalents 78,515,446 153,710,479

Cash and cash equivalents at the beginning of the period 309,638,228 138,219,642
Effect of exchange rate changes on cash and cash equivalents (1,607,260) 20,477,019
308,030,968 158,696,661
Cash and cash equivalents at the end of the period 386,546,414 312,407,140
NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)
1. STATUS AND NATURE OF BUSINESS
United Bank Limited (the Bank) is a banking company incorporated in Pakistan and is engaged in commercial banking and related services.
The Bank's registered office and principal office are situated at UBL Building, Jinnah Avenue, Blue Area, Islamabad and at UBL Head Office,
I. I. Chundrigar Road, Karachi respectively. The Bank operates 1,399 (December 31, 2023: 1,356) branches inside Pakistan including 241
(December 31, 2023: 209) Islamic Banking branches and 2 (December 31, 2023: 2) branches in Export Processing Zones. The Bank also
operates 8 (December 31, 2023: 8) branches outside Pakistan. The Bank is a subsidiary of Bestway International Holdings Limited (BIHL)
and BIHL is a wholly owned subsidiary of Bestway Group Limited (BGL) which is incorporated in the Guernsey.
The Bank's ordinary shares are listed on Pakistan Stock Exchange (PSX). Its Global Depository Receipts (GDRs) are on the list of the UK
Listing Authority and the London Stock Exchange Professional Securities Market. These GDRs are also eligible for trading on the
International Order Book System of the London Stock Exchange. Further, the GDRs constitute an offering in the United States only to
qualified institutional buyers in reliance on Rule 144A under the US Securities Act of 1933 and an offering outside the United States in
reliance on Regulation S.
2. BASIS OF PRESENTATION
These unconsolidated condensed interim financial statements have been prepared in conformity with the format of interim financial
statements prescribed by the State Bank of Pakistan (SBP) vide BPRD Circular No. 2 dated February 09, 2023.
In accordance with the directives of the Federal Government regarding the shifting of the banking system to Islamic mode. The SBP has
issued various circulars from time to time. Permissible forms of trade-related modes of financing includes purchase of goods by banks from
customers and immediate resale to them at appropriate profit in price on deferred payment basis. The purchase and resale arising under
these arrangements are not reflected in these unconsolidated financial statements as such, but are restricted to the amount of facility actually
utilized and the appropriate portion of profit thereon.
Key financial figures of the Islamic Banking branches are disclosed in note 40 to these unconsolidated condensed interim financial
statements.
2.1 STATEMENT OF COMPLIANCE
These unconsolidated condensed interim financial statements of the Bank have been prepared in accordance with the accounting and
reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan
for interim financial reporting comprise of:
- International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as are notified under
the Companies Act, 2017;
- Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan as are notified under the
Companies Act, 2017;
- Provisions of and directives issued under the Banking Companies Ordinance, 1962 and the Companies Act, 2017; and
- Directives issued by the State Bank of Pakistan (SBP) and the Securities and 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 IFRS or IFAS, the requirements of the Banking Companies Ordinance, 1962, the Companies Act,
2017 and the said directives shall prevail.
The SBP vide BSD Circular Letter No. 10, dated August 26, 2002 has deferred the applicability of International Accounting Standard 40,
Investment Property for banking companies till further instructions. Moreover, SBP vide BPRD Circular No. 4, dated February 25, 2015 has
deferred the applicability of Islamic Financial Accounting Standards (IFAS) 3, Profit and Loss Sharing on Deposits. Further, according to the
notification of the SECP issued vide SRO 411(I)/2008 dated April 28, 2008, International Financial Reporting Standard (IFRS) 7, Financial
Instruments: Disclosures has not been made applicable for banks. Accordingly, the requirements of these standards have not been
considered in the preparation of these unconsolidated condensed interim financial statements.
The SECP vide its notification SRO 633 (I)/2014 dated July 10, 2014, adopted IFRS 10 effective from the periods starting from June 30, 2014.
However, vide its notification SRO 56 (I)/2016 dated January 28, 2016, it has been notified that the requirements of IFRS 10 and section 228
of the Companies Act, 2017 will not be applicable with respect to the investment in mutual funds established under trust structure.
The disclosures made in these unconsolidated condensed interim financial statements have been limited based on a format prescribed by the
SBP vide BPRD Circular Letter No. 2 dated February 09, 2023 and IAS 34, Interim Financial Reporting. They do not include all the
information and disclosures required in preparation of audited annual financial statements, and should be read in conjunction with the audited
unconsolidated financial statements of the Bank for the year ended December 31, 2023.
These unconsolidated condensed interim financial statements represent the separate condensed interim financial statements of the Bank.
The consolidated condensed interim financial statements of the Bank and its subsidiary companies are presented separately.
2.2 Standards, interpretations and amendments to accounting standards that are effective in the current period
During the year, the Bank has adopted IFRS 9 as applicable in Pakistan with effect from 01 January 2024 (refer note 3.1 for details). There
are certain other amendments to existing accounting and reporting standards that have become applicable to the Bank for accounting periods
beginning on or after January 01, 2024. Except for IFRS 9, these are either considered not to be relevant or do not have any significant impact
and accordingly have not been detailed in these unconsolidated condensed interim financial statements.
2.3 Standards, interpretations and amendments to accounting standards that are not yet effective
There are various amendments to accounting and reporting standards as applicable in Pakistan that are not yet effective. These are not likely
to have a material effect on the Bank’s financial statements.
3. MATERIAL ACCOUNTING POLICIES
The accounting policies adopted in the preparation of these unconsolidated condensed interim financial statements are consistent with those
applied in the preparation of the unconsolidated financial statements of the Bank for the year ended December 31, 2023, except as disclosed
in Notes 3.1 and 3.2.
3.1 Changes in reporting format
The SBP vide BPRD Circular No. 2 dated February 09, 2023 specified the new format for interm financial statements of banking companies.
The new format has revised the disclosure requirements of the Bank for the nine month ended September 30, 2024 which has resulted in
additional disclosures relating to IFRS 9 and reclassification of Lease liabilities and Right of use assets on the face of Statement of Financial
Position out of Property and equipment and Other Liabilities, respectively in these financial statements.
3.2 IFRS 9 - Financial Instruments
The Bank has adopted IFRS 9 (read with IFRS 9 application instructions issued by SBP) retrospectively with date of initial application as
January 01, 2024, which resulted in changes in accounting policies and adjustments to the amounts previously recognised in the financial
statements. In terms of the transitional provisions of IFRS 9, adjustments to the carrying amounts of financial assets and liabilities at the date
of transition were recognised in the opening unappropriated profit and other reserves at the beginning of the current period without restating
the comparative figures. The impact on carrying amounts of the financial assets and liabilities is disclosed in Note 3.2.4.
3.2.1 Scope of IFRS 9 application
IFRS 9 has been applicable in several overseas jurisdictions at various effective dates starting from January 01, 2018. The requirements of
this standard were already incorporated in the Bank’s financial statements for the jurisdictions where IFRS 9 has been adopted. The results of
those overseas operations where IFRS 9 is not applicable will be directly incorporated in the Bank’s financial statements as per the respective
country's regulations, for the year ending December 31, 2024. As per the SBP IFRS 9 application instructions, all oversas Jurisdictions will be
subject to the IFRS 9 requirements from next financial year.
Upon implementation of IFRS 9, the Banking Industry sought certain technical clarifications from SBP and also identified practical difficulties
in certain areas of implementation of IFRS 9, such as valuation of unquoted equity securities, fair valuation of concessional loans, recognition
of interest income/expense on financial instruments, modification accounting of financial assets and expected credit loss on foreign currency
balances with SBP. The SBP vide its Circular No.16 dated July 29, 2024 has allowed temporary extension in timeline for most of the above
referred matters with directions to implement IFRS 9 requirements before the end of the financial year other than valuation of unquoted equity
securities which is required to be implemented from next financial year. However, the Banking Industry will continue to engage SBP on
remaining matters in the coming months to have more clarity on such areas. Accordingly, the Bank has continued to apply previous
accounting practices in such areas for the purposes of preparation of these interim financial statements.
3.2.2 Significant differences from accounting policies applicable till 31 December 2023 before adoption of IFRS 9
3.2.2.1 Classification of financial assets
IFRS 9 introduced a new classification model for financial assets that is more principle-based than the previous requirements. Financial
assets are classified according to their contractual cash flow characteristics and the business models under which they are held. Instruments
will be classified either at amortised cost, the newly established measurement category fair value through other comprehensive income
(FVOCI) or fair value through profit or loss (FVTPL). For equity investment that are not held for trading, an election is available to the Bank to
classfiy these either though FVTPL or FVOCI. The previous accounting policies were based on instrument by instrument classification into
Held for trading, Held to maturity and Available for Sale categories as disclosed in Note 4.3 to the annual financial statements of the Bank.
3.2.2.2 Impairment of debt investments and loans and advances

The new IFRS 9 impairment requirements eliminate the previous threshold for the recognition of credit losses, i.e., it is no longer necessary
for a credit event to have occurred before credit losses are recognised. Instead, an entity always accounts for ECLs, and updates the loss
allowance for changes in these ECLs at each reporting date to reflect changes in credit risk since initial recognition. Consequently, the holder
of the financial asset needs to take into account more timely and forward-looking information in order to provide users of financial statements
with useful information about the ECLs on financial instruments that are in the scope of these impairment requirements. The previous
impairment requirements were based solely on Prudential regulations of SBP as disclosed in Note 4.9 to the annual financial statements of
the Bank.
3.2.2.3 Impairment of equity investments

Previously, investments classified as available for sale were required to be tested for impairment and if there is an objective evidence of
impairment, impairment was required to be booked. Under IFRS 9 regime, no impairment is required against such investments which are
carried at FVOCI as the gain or loss on remeasurement will permanently remain in OCI/Surplus on revaluation of Investments. The previous
accounting policies are disclosed in Note 4.9 to the annual financial statements of the Bank.
3.2.3 Material accounting policies applicable from 01 January 2024 as a result of adoption of IFRS 9
3.2.3.1 Financial assets – initial recognition
Financial assets are initially recognized at fair value. When the transaction price of the instrument differs from the fair value at origination and
the fair value is based on a valuation technique using only inputs observable in market transactions, the Bank recognises the difference
between the transaction price and fair value in profit and loss account. In those cases where fair value is based on models for which some of
the inputs are not observable, the difference between the transaction price and the fair value is deferred and is only recognised in profit and
loss account when the inputs become observable, or when the instrument is derecognised.
3.2.3.2 Classification and subsequent measurement of financial assets
Financial assets are classified into following categories for measurement subsequent to intial recognition:
- Financial assets at amortized cost
- Debt instruments at 'fair value through other comprehensive income' FVOCI
- Equity instruments at 'fair value through other comprehensive income' FVOCI
- Financial assets at 'fair value through profit or loss' FVTPL
3.2.3.3 Financial assets at amortised cost
The Bank classifies its financial assets at amortized cost only if both of the following conditions are met:
- The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows
- The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest
(SPPI) on the principal amount outstanding
The details of these conditions are outlined below:
a) Business model
assessment
The Bank determines its business model at the level that best reflects how it manages groups of financial assets to achieve its business
objective.
The Bank's business model is not assessed on an instrument-by-instrument basis, but at a higher level of aggregated portfolios and is
based on observable factors such as:
- How the performance of the business model and the financial assets held within that business model are evaluated and reported to the
Bank's Board / Board Committees;
- The risks that affect the performance of the business model (and the financial assets held within that business model) and, in particular,
the way those risks are managed;
- The expected frequency, value and timing of sales are also important aspects of the Bank’s assessment.
The business model assessment is based on reasonably expected scenarios without taking 'worst case' or 'stress case’ scenarios into
account. If cash flows after initial recognition are realised in a way that is different from the Bank's original expectations, the Bank does
not change the classification of the remaining financial assets held in that business model, but incorporates such information when
assessing newly originated or newly purchased financial assets going forward.
b) The SPPI test
As a second step of its classification process the Bank assesses the contractual terms of financial asset to identify whether they meet the
SPPI test. The assessment of SPPI aims to identify whether the contractual cash flows are ‘solely payments of principal and interest on
the principal amount outstanding’.
‘Principal’ for the purpose of this test is defined as the fair value of the financial asset at initial recognition and may change over the life of
the financial asset. The most significant elements of 'interest' within a lending arrangement are typically the consideration for the time
value of money and credit risk. To make the SPPI assessment, the Bank applies judgement and considers relevant factors such as the
currency in which the financial asset is denominated, and the period for which the interest rate is set.
In contrast, contractual terms that introduce a more than de minimis exposure to risks or volatility in the contractual cash flows that are
unrelated to a basic lending arrangement do not give rise to contractual cash flows that are solely payments of principal and interest on
the amount outstanding. In such cases, the financial asset is required to be measured at FVTPL.
After initial measurement, these financial assets are subsequently measured at amortized cost.
3.2.3.4 Debt instruments at FVOCI
The Bank applies this new category under IFRS 9 when both of the following conditions are met:
- The instrument is held within a business model, the objective of which is achieved by both collecting contractual cash flows and selling
financial assets
- The contractual terms of the financial asset meet the SPPI test
FVOCI debt instruments are subsequently measured at fair value with gains and losses arising due to changes in fair value recognised in
OCI. Interest income at EIR and foreign exchange gains and losses are recognised in the profit and loss account.
The ECLs for debt instruments measured at FVOCI do not reduce the carrying amount of these financial assets in the statement of financial
position, which remains at fair value. Instead, an amount equal to the allowance that would arise if the assets were measured at amortised
cost is recognised in OCI as an accumulated impairment amount, with a corresponding charge to profit and loss account. The accumulated
loss recognised in OCI is recycled to the profit and loss account upon derecognition of the assets.
On derecognition, cumulative gains or losses previously recognised in OCI are reclassified from OCI to profit and loss account.
3.2.3.5 Equity instruments at FVOCI
Upon initial recognition, the Bank elects to classify irrevocably some of its equity investments as equity instruments at FVOCI when they meet
the definition of 'Equity' under IAS 32 Financial Instruments: Presentation and are not held for trading. Such classification is determined on an
instrument-by-instrument basis and is irrevocable.
Gains and losses on these equity instruments are never recycled to profit and loss account. Dividends are recognised in profit and loss
account when the right of the payment has been established, except when the Bank benefits from such proceeds as a recovery of part of the
cost of the instrument, in which case, such gains are recorded in OCI. Equity instruments at FVOCI are not subject to an impairment
assessment.
3.2.3.6 Financial assets and financial liabilities at FVPL
Financial assets and financial liabilities in this category are those that are:
- held for trading, that is, they have been purchased or issued primarily for short-term profit-making through trading activities or form part of
a portfolio of financial instruments that are managed together, for which there is evidence of a recent pattern of short-term profit taking, or
- not held for trading and have been either designated by management upon initial recognition, or mandatorily required to be measured at
Financial assets are recorded in the statement of financial position at fair value. Changes in fair value are recorded in profit and loss account.
Interest and dividend income or expense is recorded in net trading income according to the terms of the contract, or when the right to
payment has been established.
3.2.3.7 Financial liabilities at amortised cost
Financial liabilities with a fixed maturity are measured at amortised cost. These include Bills payable, Borrowings, Deposits and certain items
within Other Liabilities.
3.2.3.8 Derecognition of financial assets
3.2.3.8.1 Derecognition due to substantial modification of terms and conditions
The Bank derecognises a financial asset, such as a loan to a customer, when the terms and conditions have been renegotiated to the extent
that, substantially, it becomes a new loan, with the difference recognised as a derecognition gain or loss, to the extent that an impairment loss
has not already been recorded. The newly recognised loan is classified as Stage 1 for ECL measurement purposes, unless it is deemed to be
purchased originated credit impaired. When assessing whether or not to derecognise a loan to a customer, amongst others, the Bank
considers qualitative factors such as change in currency of the loan, introduction of an equity feature, change in counterparty, or if the
modification is such that the instrument would no longer meet the SPPI criterion.
If the modification does not result in cash flows that are substantially different, the modification does not result in derecognition. Based on the
change in cash flows discounted at the original EIR, the Bank records a modification gain or loss, to the extent that an impairment loss has
not already been recorded.
The gain/(loss) on derecognition of financial asset has been calculated as the difference between the book value (including impairment) and
the proceeds received.
3.2.3.8.2 Derecognition other than due to substantial modification of terms and conditions
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when the rights
to receive cash flows from the financial asset have expired. The Bank also derecognises the financial asset if it has both transferred the
financial asset and the transfer qualifies for derecognition.
3.2.3.9 Derecognition of financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.
3.2.3.10 Impairment of financial assets
3.2.3.10.1 Overview of the ECL principles
The adoption of IFRS 9 has fundamentally changed the Bank’s loan loss impairment method by replacing the incurred loss approach of the
local regulations with a forward-looking ECL approach. The Bank has been recording the allowance for expected credit losses for all loans
and other debt financial assets held at amortised cost or FVOCI, together with loan commitments, letters of credit and financial guarantee
contracts. Equity instruments are not subject to impairment under IFRS 9. Under the SBP's instructions, local currency credit exposures
guaranteed by the Government and Government Securities are exempted from the application of ECL.
3.2.3.10.2 The calculation of ECLs
The ECL allowance is based on the credit losses expected to arise over the life of the asset (the lifetime expected credit loss (LTECL)),
unless there has been no significant increase in credit risk since origination, in which case, the allowance is based on the 12 months’
expected credit loss (12mECL).
The 12mECL is the portion of LTECLs that represent the ECLs that result from default events on a financial instrument that are possible
within the 12 months after the reporting date.
Based on the above process, the Bank groups its financial assets into Stage 1, Stage 2 and Stage 3 as described below:
- Stage 1: When loans are first recognised, the Bank recognises an allowance based on 12mECLs. Stage 1 loans also include facilities
where the credit risk has improved and the loan has been reclassified from Stage 2.
- Stage 2: When a loan has shown a significant increase in credit risk since origination (SICR), the Bank records an allowance for the
LTECLs. Stage 2 loans also include facilities, where the credit risk has improved and the loan has been reclassified from Stage 3.
- Stage 3: Loans considered credit-impaired. The Bank records an allowance for the LTECLs with PD set at 100%. Under SBP's
instructions, until implementation of IFRS 9 has stabilized, Stage 3 allowance would be taken as as higher of IFRS 9 ECL or provision
computed under Prudential Regulations.
The Bank has established a policy to perform an assessment, at the end of each reporting period, of whether a financial instrument’s credit
risk has increased significantly since initial recognition, by considering the change in the risk of default occurring over the remaining life of the
financial instrument. The Bank considers an exposure to have significantly increased in credit risk when there is considerable deterioration in
the internal rating grade for subject borrower. The Bank also applies a secondary qualitative method for triggering a significant increase in
credit risk for an asset, such as moving a customer/facility to the watch list, or the account becoming forborne. Regardless of the change in
credit grades, generally, the Bank considers that there has been a significant increase in credit risk when contractual payments are more than
30 days past due. However, for certain portfolios, the Bank has rebutted 30 DPD presumption based on behavrioural analysis of its
borrowers.
The key elements of ECL calculations are as follows:
- The Probability of Default (PD) is an estimate of the likelihood of default over a given time horizon. A default may only happen at a certain
time over the assessed period, if the facility has not been previously derecognised and is still in the portfolio. PD is estimated based on
transitioning among credit states. Credit states are defined by rating classes and are based on the Bank’s internal risk ratings (i.e. from 1
to 12). Through the yearly review of the non-consumer portfolio, the Bank has drawn a yearly transition matrix of ratings to compute a
count based PD over the one year horizon for the last 7 years. PDs for Non rated portfolios are calculated based on Days Past Due
(DPD) bucket level for each segment separately. Where practical, they also build on information from External Rating Agencies. PDs are
then adjusted for IFRS 9 ECL calculations to incorporate forward looking information.
- The Exposure at Default (EAD) is an estimate of the exposure at a future default date, taking into account expected changes in the
exposure after the reporting date, including repayments of principal and interest, whether scheduled by contract or otherwise, expected
drawdowns on committed facilities, and accrued interest from missed payments.
- The Loss Given Default (LGD) is an estimate of the loss arising in the case where a default occurs at a given time. It is based on the
difference between the contractual cash flows due and those that the lender would expect to receive, including from the realisation of any
collateral. To mitigate its credit risks on financial assets, the Bank seeks to use collateral, where possible. The collateral comes in various
forms, such as cash, securities, letters of credit/guarantees, real estate, receivables, inventories and other non-financial assets. For IFRS
9, the Bank only considers the liquid collaterals.
The interest rate used to discount the ECLs would be based on the effective interest rate that is expected to be charged over the expected
period of exposure to the facilities.
When estimating the ECLs, the Bank considers three probability-weighted scenarios (a base case, a best case, and a worse case). Each of
these is associated with different PDs, EADs and LGDs. These expected probabilities are applied to a forecast EAD and multiplied by the
expected LGD and discounted by an approximation to the original EIR. This calculation is made for each of the three scenarios. When
relevant, the assessment of multiple scenarios also incorporates how defaulted loans are expected to be recovered, including the probability
that the loans will cure and the value of collateral or the amount that might be received for selling the asset.
The maximum period for which the credit losses are determined is the contractual life of a financial instrument unless the Bank has the legal
right to call it earlier.
Impairment losses and reversals are accounted for and disclosed separately from modification losses or gains that are accounted for as an
adjustment of the financial asset’s gross carrying value.
3.2.3.10.3 Forward looking information
The Bank formulates a base case view of the future direction of relevant economic variables and a representative range of other possible
forecast scenarios and consideration of a variety of external actual and forecast information. This process involves developing three different
economic scenarios, which represent macro economic inputs.
3.2.4 Transition disclosures
This note sets out the impact of adopting IFRS 9 on the statement of financial position, unappropriated profit and surplus on revaluation of
investments.
The following table reconciles the carrying amounts of financial assets, from their previous measurement category in accordance with
Prudential Regulations to their new measurement categories upon transition to IFRS 9 on January 01, 2024:
Classification under IFRS 9

Carrying
amount as per
At FVOCI - IFRS 9 carrying
current At FVOCI - At Amortized Remeasurement
At FVTPL without amount as at Jan
accounting with recycling Cost under IFRS 9
recycling 01, 2024
policy as at Dec
31, 2023
----------------------------------------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------------------------
Cash and cash equivalents 308,030,968 - - - 308,030,968 (1,182) 308,029,786

Lendings to financial institutions 34,447,852 - - - 34,447,852 - 34,447,852
Advances 613,565,526 - - - 613,565,526 (7,969,693) 605,595,833
Investments in financial assets

Held for trading 78,956,749 78,956,749 - - - - 78,956,749
Held to maturity 362,838,478 - - - 362,838,478 (344) 362,838,134
Available for sale 3,939,226,221 3,635,231 3,925,259,062 10,331,928 - (7,157) 3,939,219,064
Other assets 150,395,306 4,266,717 - - 146,128,589 - 150,395,306

Total Financial assets 5,487,461,100 86,858,697 3,925,259,062 10,331,928 1,465,011,413 (7,978,376) 5,479,482,724
Borrowings 2,815,470,554 - - - 2,815,470,554 - 2,815,470,554

Bills payable 21,651,784 - - - 21,651,784 - 21,651,784
Deposits 2,350,540,823 - - - 2,350,540,823 - 2,350,540,823
Subordinated debt 10,000,000 - - - 10,000,000 - 10,000,000
Other liabilities 88,722,556 2,741,100 - - 85,981,456 1,037,902 89,760,458
Total Financial liabilities 5,286,385,717 2,741,100 - - 5,283,644,617 1,037,902 5,287,423,619
Net Financial Assets 201,075,383 84,117,597 3,925,259,062 10,331,928 (3,818,633,204) (9,016,278) 192,059,105
Deferred tax assets (1,921,889) - - - - 4,417,976 ` 2,496,087
Effect on net assets on adoption of IFRS 9 (4,598,302)
The following explains how applying the new classification requirements of IFRS 9 led to changes in classification of certain financial assets
held by the Bank as shown in the table above:
(A) Debt instruments previously classified as available for sale (AFS) but which fail the SPPI test
The Bank held a portfolio of debt instruments amounting to Rs. 1,864.973 million that failed to meet the SPPI requirement for amortised cost
classification under IFRS 9. These instruments contain provisions that, in certain circumstances, can allow the issuer to defer interest
payments, but which do not accrue additional interest. This clause breaches the criterion that interest payments should only be consideration
for credit risk and the time value of money on the principal. As a result these are required to be classified as FVTPL under IFRS 9.
(B) Designation of equity instruments at FVOCI
The Bank has elected to irrevocably designate investments in listed securities and strategic investments in unquoted securities as FVOCI
amounting to Rs. 9,611.924 million and Rs. 720.004 million, respectively. These securities were previously classified as available for sale.
The changes in fair value of such securities will no longer be reclassified to profit or loss when they are disposed of.
(C) Reclassification from retired categories with no change in measurement
In addition to the above, the following debt instruments have been reclassified to new categories under IFRS 9, as their previous categories
under existing local regulations were ‘retired’, with no changes to their measurement basis:
(i) Those previously classified as available for sale and now classified as measured at FVOCI;
(ii) Those previously classified as held to maturity and now classified as measured at amortised cost; and
(iii) Those previously classified as held for trading and now classified as measured at FVTPL.
The impact of transition to IFRS 9 on unappropriated profit and surplus on revaluation of investments is as follows:
Surplus /
Unappro- (Deficit) on
Total
priated profit revaluation
Investments
---------------- Rupees in '000' ----------------
Balance as at December 31, 2023 90,492,296 3,753,667 94,245,963

Recognition of IFRS 9 ECL - net of tax (4,598,302) - (4,598,302)
Available for sale equity instruments reclassified as FVOCI under IFRS 9 - net of tax 3,214,765 (3,214,765) -
Balance under IFRS 9 as at January 01, 2024 - as restated 89,108,759 538,902 89,647,661
4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of these unconsolidated condensed interim financial statements in conformity with the accounting and reporting standards as
applicable in Pakistan requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and
liabilities and income and expenses. It also requires management to exercise judgment in the application of its accounting policies. The
estimates and assumptions are based on historical experience and various other factors that are believed to be reasonable under the
circumstances. These estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision
affects both current and future periods.
The significant judgments made by management in applying its accounting policies and the key sources of estimation uncertainty were the
same as those applied to the unconsolidated financial statements of the Bank for the year ended December 31, 2023, except for the adoption
of IFRS 9 w.e.f January 01, 2024. These are disclosed in Note 4.1
4.1 Impairment losses on financial assets
Determination of expected credit losses is a significant estimate and involves the following judgments:
- Development of ECL models, including the various formulas and the choice of inputs
- The segmentation of financial assets when their ECL is assessed on a collective basis
- The Bank’s internal credit grading model based on which PDs are assigned to the individual grades
- Qualitative and quantitative indicators used as SICR triggers
- The definition of default against which parameters of ECL model such as PD, LGD and EAD are evaluated
- Selection of forward-looking macroeconomic scenarios and their probability weightings
- Determination of economic inputs, such as GDP growth and CPI
5. FINANCIAL RISK MANAGEMENT
The financial risk management objectives and policies adopted by the Bank are consistent with those disclosed in the unconsolidated
financial statements for the year ended December 31, 2023.
(Un-audited) (Audited)
2024 2023
-------------- (Rupees in '000) --------------
6. CASH AND BALANCES WITH TREASURY BANKS
In hand
Local currency 47,921,114 27,876,931
Foreign currencies 8,065,526 13,042,939
55,986,640 40,919,870
With State Bank of Pakistan in
Local currency current accounts 122,261,811 88,035,634
Foreign currency current accounts 4,923,916 5,306,080
Foreign currency deposit accounts 8,682,419 9,473,621
135,868,146 102,815,335
With other central banks in
Foreign currency current accounts 91,863,219 50,093,433
Foreign currency deposit accounts 19,085,137 10,684,831
110,948,356 60,778,264
With National Bank of Pakistan in
Local currency current accounts 53,237,697 72,368,067
Foreign currency deposit accounts 5,554,262 -
58,791,959 72,368,067
National prize bonds 458,445 448,681
362,053,546 277,330,217
Less: Credit loss allowance held against cash and balances with treasury banks (91,378) -
Cash and balances with treasury banks - net of credit loss allowance 361,962,168 277,330,217
7. BALANCES WITH OTHER BANKS
In Pakistan
In deposit accounts 7 7
Outside Pakistan
In current accounts 16,543,501 23,665,786
In deposit accounts 8,042,825 7,034,958
24,586,326 30,700,744
24,586,333 30,700,751
Less: Credit loss allowance held against balances with other banks (2,087) -
Balances with other banks - net of credit loss allowance 24,584,246 30,700,751
8. LENDINGS TO FINANCIAL INSTITUTIONS
Musharakah lending - 12,500,000

Call lending 100,000 -
Repurchase agreement lendings (Reverse Repo) 976,737 21,947,852
1,076,737 34,447,852
Less: Credit loss allowance held against lending to financial institutions - -
Lending to financial institutions - net of credit loss allowance 1,076,737 34,447,852
(Un-audited)
September 30, 2024
Credit loss
8.1 Lending to FIs - Particulars of credit loss allowance Lending allowance held
-------------- (Rupees in '000) --------------

Domestic
Performing Stage 1 1,076,737 -
Under performing Stage 2 - -
Non-performing Stage 3
Substandard - -
Doubtful - -
Loss - -
1,076,737 -
Overseas
Performing Stage 1 - -
Substandard - -
Doubtful - -
Loss - -
- -
Total 1,076,737 -
9. INVESTMENTS Septmber 30, 2024 (Un-audited) December 31, 2023 (Audited)
Expected
9.1 Investments by type Cost / Amortised Surplus / Carrying Cost / Provision for Carrying
credit loss Surplus / (Deficit)
cost (Deficit) Value Amortised cost diminution Value
allownace
------------------------------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------------------------------

FVTPL
Federal Government securities
- Market Treasury Bills 36,362,364 - 37,684 36,400,048 - - - -
- Pakistan Investment Bonds - fixed 1,879,789 - 22,748 1,902,537 - - - -
- Pakistan Investment Bonds - floaters 35,031,080 - 48,151 35,079,231 - - - -
Real Estate Investment Trust units 616,232 - 152,488 768,720 - - - -
Non-Government debt securities
- Corporate Sukuks 1,115,000 - - 1,115,000 - - - -
- Term Finance Certificates 749,947 - - 749,947 - - - -
75,754,412 - 261,071 76,015,483 - - - -
Held for trading securities
- Market Treasury Bills - - - - 17,963,912 - (412) 17,963,500
- Pakistan Investment Bonds - fixed - - - - 3,066,638 - (19,627) 3,047,011
- Pakistan Investment Bonds - floaters - - - - 58,005,273 - (59,035) 57,946,238
- - - - 79,035,823 - (79,074) 78,956,749
FVOCI
- Market Treasury Bills 3,232,043,590 - 38,529,223 3,270,572,813 - - - -
- Pakistan Investment Bonds - fixed 672,586,910 - 39,422,365 712,009,275 - - - -
- Pakistan Investment Bonds - floaters 1,465,818,805 - 5,614,625 1,471,433,430 - - - -
- Government of Pakistan Sukuks 267,927,216 - 18,445,644 286,372,860 - - - -
- Islamic Naya Pakistan Certificates 2,936,321 - - 2,936,321 - - - -
- Government of Pakistan Eurobonds 5,237,317 (1,560,819) 1,060,749 4,737,247 - - - -
Ordinary shares -
- Listed companies 12,864,797 - 239,945 13,104,742 - - - -
- Unlisted companies 1,656,293 - (57,587) 1,598,706 - - - -
Non-Government debt securities -
- Corporate Sukuks 21,429 (7,047) - 14,382 - - - -
- Term Finance Certificates 462,335 (162,444) - 299,891 - - - -
Foreign securities -
- Market Treasury Bills 163,116,140 - 543,971 163,660,111 - - - -
- Foreign bonds - sovereign 96,236,717 (15,562) (1,206,082) 95,015,073 - - - -
- Foreign bonds - others 1,354,090 (479) (88,447) 1,265,164 - - - -
Real Estate Investment Trust units - - - - - - - -
5,922,261,960 (1,746,351) 102,504,406 6,023,020,015 - - - -
Available for sale securities

- Market Treasury Bills - - - - 1,759,484,348 - 4,084,530 1,763,568,878
- Pakistan Investment Bonds - fixed - - - - 501,749,097 - (11,952,985) 489,796,112
- Pakistan Investment Bonds - floaters - - - - 1,062,667,124 - 6,455,501 1,069,122,625
- Government of Pakistan Sukuks - - - - 435,136,727 (410,122) 7,532,654 442,259,259
- Islamic Naya Pakistan Certificates - - - - 5,709,016 - - 5,709,016
- Government of Pakistan Eurobonds - - - - 40,864,536 (12,011,510) 300,243 29,153,269
Ordinary shares
- Listed companies - - - - 13,243,966 (6,048,102) 3,570,071 10,765,935
- Unlisted companies - - - - 779,023 (59,019) - 720,004
Non-Government debt securities
- Corporate Sukuks - - - - 1,200,714 - - 1,200,714
- Term Finance Certificates - - - - 1,212,322 (162,334) - 1,049,988
Foreign securities
- Market Treasury Bills - - - - 67,730,157 - 55,839 67,785,996
- Foreign bonds - sovereign - - - - 58,914,521 (23,504) (2,666,386) 56,224,631
- Foreign bonds - others - - - - 1,381,785 (489) (127,734) 1,253,562
Real Estate Investment Trust units - - - - 507,834 - 108,398 616,232
- - - - 3,950,581,170 (18,715,080) 7,360,131 3,939,226,221
Septmber 30, 2024 (Un-audited) December 31, 2023 (Audited)
Expected
9.1 Investments by type - continued Cost / Amortised Surplus / Carrying Cost / Provision for Surplus / Carrying
Note credit loss
cost (Deficit) Value Amortised cost diminution (Deficit) Value
allownace
------------------------------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------------------------------

Amortised cost
- Pakistan Investment Bonds - fixed 193,016,766 - - 193,016,766 - - - -
- Pakistan Investment Bonds - floaters 25,915,913 - - 25,915,913 - - - -
- Government of Pakistan Sukuks 10,001,263 - - 10,001,263 - - - -
- Government of Pakistan Eurobonds - - - - - - - -
- Bai Muajjal with Government of Pakistan 45,505,664 - - 45,505,664 - - - -
Non-Government debt securities - -
- Corporate Sukuks 9,550,281 (32,151) - 9,518,130 - - - -
- Term Finance Certificates 9,312,767 (430,136) - 8,882,631 - - - -
- Debentures 2,267 (2,267) - - - - - -
- Participation Term Certificates 437 (437) - - - - - -
- Corporate Bond 2,698,166 (806,906) - 1,891,260
Foreign securities - -
- Market Treasury Bills 10,793,476 - - 10,793,476 - - - -
- Foreign bonds - sovereign 17,020,830 (15,562) - 17,005,268 - - - -
- Foreign bonds - others 1,465,462 (519) - 1,464,943 - - - -
- CDC SAARC Fund 604 - - 604 - - - -
325,283,896 (1,287,978) - 323,995,918 - - - -
Held to maturity securities

- Pakistan Investment Bonds - fixed - - - - 253,017,065 - - 253,017,065
- Pakistan Investment Bonds - floaters - - - - 25,847,573 - - 25,847,573
- Government of Pakistan Sukuks - - - - 13,001,719 - - 13,001,719
- Government of Pakistan Eurobonds - - - - 16,349,538 (4,406,225) - 11,943,313
- Bai Muajjal with Government of Pakistan - - - - - - - -
Non-Government debt securities -
- Corporate Sukuks - - - - 9,471,269 (46,394) - 9,424,875
- Term Finance Certificates - - - - 10,551,604 (429,951) - 10,121,653
- Debentures - - - - 2,267 (2,267) - -
- Participation Term Certificates - - - - 437 (437) - -
- Corporate Bond - - - - 2,739,066 (814,584) - 1,924,482
Foreign securities
- Market Treasury Bills - - - - 15,875,336 - - 15,875,336
- Foreign bonds - sovereign - - - - 20,728,155 (540,599) - 20,187,556
- Foreign bonds - others - - - - 1,494,823 (529) - 1,494,294
- CDC SAARC Fund - - - - 612 - - 612
- - - - 369,079,464 (6,240,986) - 362,838,478
Associates
- UBL Insurers Limited 240,000 - - 240,000 240,000 - - 240,000
- Khushhali Bank Limited 1,057,485 (1,057,485) - - 1,057,485 (1,057,485) - -
1,297,485 (1,057,485) - 240,000 1,297,485 (1,057,485) - 240,000
Subsidiaries
- United National Bank Limited (UBL UK) 9.5 - - - - 2,855,223 - - 2,855,223
- UBL Currency Exchange (Private) Limited 2,000,000 - 2,000,000 1,000,000 - - 1,000,000
- UBL Fund Managers Limited 100,000 - - 100,000 100,000 - - 100,000
2,100,000 - - 2,100,000 3,955,223 - - 3,955,223
Total Investments 6,326,697,753 (4,091,814) 102,765,477 6,425,371,416 4,403,949,165 (26,013,551) 7,281,057 4,385,216,671
Note September 30, December 31,
9.1.1 Investments given as collateral
2024 2023
------- (Rupees in '000) -------

Market Treasury Bills 2,566,354,516 1,739,647,706
Pakistan Investment Bonds 1,593,312,127 962,704,865
4,159,666,643 2,702,352,571
The market value of securities given as collateral is Rs. 4,194,885 million (December 31, 2023: Rs. 2,716,080 million).
9.2 Expected credit loss allowance for diminution in value of investments
Opening balance 26,013,551 26,823,071

Exchange adjustments (92,937) 3,003,752
Impact of reclassification on adoption of IFRS 9 (6,107,121) -
Impact of ECL recognised on adoption of IFRS 9 7,501 -
Charge / (reversals)
Charge for the period / year 110,912 7,793,597
Reversals for the period / year (360,958) (1,266,052)
(250,046) 6,527,545
Derecognition of ECL on disposals 9.2.1 (15,479,134) (10,340,817)
Amounts written off - -
Closing balance 9.2.2 4,091,814 26,013,551
9.2.1 ECL provision under IFRS 9 amounting to Rs.15,479.134 million was held as part of the amortised cost of securities. This amount has been derecognised as a consequence
of the disposal of such securities.
9.2.2 Particulars of expected credit loss allowance for diminution in value of investments
(Un-audited)
September 30, 2024
Category of classification Expected credit
Outstanding
loss allowance
amount
held
------- (Rupees in '000) -------
Domestic
Performing Stage 1 6,009,613,766 7,501
Substandard - -
Doubtful - -
Loss 626,981 626,981
Overseas
Performing Stage 1 289,866,742 32,123
Under performing Stage 2 8,055,456 2,367,724
Substandard - -
Doubtful - -
Loss - -
Total 6,308,162,945 3,034,329
Particulars of provision against debt securities (Audited)

December 31, 2023
Category of classification Non-Performing
Provision
Investments
------- (Rupees in '000) -------
Domestic
Loss 641,383 641,383
Overseas
Defaulted exposure - -
Total 641,383 641,383
9.3 Summary of financial position and performance of associates and subsidiaries
September 30, 2024 (Un-audited)

Country of Total comprehensive
Holding Assets Liabilities Revenue Profit after tax
Incorporation income for the
% -------------------------------------------------- (Rupees in '000) --------------------------------------------------
Associates
UBL Insurers Limited Pakistan 30.00% 12,772,031 10,049,197 1,647,237 544,100 616,553
Subsidiaries
UBL Fund Managers Limited Pakistan 98.87% 6,724,719 2,858,267 2,624,212 798,976 798,976
UBL Currency Exchange (Private) Limited Pakistan 100.00% 2,450,738 457,480 362,634 7,509 6,400
9.4 The market value of securities classified as amortised cost as at September 30, 2024 amounted to Rs. 322,229.832 million (December 31, 2023: Rs. 337,640.922 million).
9.5 The transaction for the sale of United National Bank Limited (UNBL UK) was approved by the shareholders’ of United Bank Limited (UBL) in 65th Annual General Meeting
held on 18 March 2024. As per the resolution for disposal of UNBL UK, the “Indicative Offer” received from Bestway Group to acquire 50.1% shares upfront, at a price of
GBP 25.495 million, out of 55% shareholding of the Bank in UNBL UK, with an option to purchase remaining 4.9% shares within 36 months of the initial acquisition of 50.1%
at the same price. The transaction for the sale of the Bank's shareholding in United National Bank Limited (UNBL UK) was concluded with the same terms formerly
mentioned and the sale proceeds have been realized in July 2024. On disposal, the profit on disposal of Rs 7.083 million is recognised in profit and loss as capital gains. The
residual investment of 4.9% holding in UNBL UK is recorded as investment in unlisted securities at fair value of Rs 885.450 million.
10. ADVANCES Note September 30, 2024 (Un-audited)

Performing Non-performing Total
------------- (Rupees in '000) ------------
Loans, cash credits, running finances, etc. 539,912,468 97,160,467 637,072,935

Islamic financing and related assets 40.3 58,412,457 284,762 58,697,219
Bills discounted and purchased 21,893,802 10,587,678 32,481,480
Advances - gross 620,218,727 108,032,907 728,251,634
Expected credit loss allowance against advances 10.3

-Stage 1 (5,283,525) - (5,283,525)
-Stage 2 (8,924,455) - (8,924,455)
-Stage 3 - (94,775,930) (94,775,930)
(14,207,980) (94,775,930) (108,983,910)
Advances - net of expected credit loss allowance 606,010,747 13,256,977 619,267,724
December 31, 2023 (audited)

Performing Non-performing Total
------------- (Rupees in '000) ------------
Loans, cash credits, running finances, etc. 553,317,263 94,992,688 648,309,951

Islamic financing and related assets 40.3 47,191,822 222,205 47,414,027
Bills discounted and purchased 11,018,066 10,325,627 21,343,693
Advances - gross 611,527,151 105,540,520 717,067,671
Provision against advances

-Specific 10.3 - (92,332,287) (92,332,287)
-General (11,169,858) - (11,169,858)
(11,169,858) (92,332,287) (103,502,145)
Advances - net of provision 600,357,293 13,208,233 613,565,526
2024 2023
10.1 Particulars of advances - gross ------- (Rupees in '000) -------
In local currency 512,971,847 465,031,632

In foreign currencies 215,279,787 252,036,039
728,251,634 717,067,671
10.2 Advances include Rs.108,032.907 million (December 31, 2023: Rs. 105,540.520 million) which have been placed under non-performing / Stage 3 status as detailed
below:
(Un-audited)
September 30, 2024
Category of Classification (Stage 3) Non-Performing Credit loss

Loans allowance
------- (Rupees in '000) -------

Domestic
Other Assets Especially Mentioned* 181,972 42,481
Substandard 2,445,798 1,710,982
Doubtful 258,422 125,921
Loss 21,548,654 20,552,872
24,434,846 22,432,256
Overseas
Other Assets Especially Mentioned* - -
Substandard 2,906,137 733,505
Doubtful 17,398,562 11,466,979
Loss 63,293,362 60,143,190
83,598,061 72,343,674
Total 108,032,907 94,775,930
(Audited)
December 31, 2023
Category of Classification Non-Performing

Provision
Loans
------- (Rupees in '000) -------

Domestic
Other Assets Especially Mentioned* 105,024 3,660
Substandard 2,963,970 729,208
Doubtful 197,690 91,464
Loss 21,198,758 20,225,801
24,465,442 21,050,133
Overseas
Not past due but impaired ** 1,439,842 331,800
Overdue by:
Upto 90 days 83,720 -
91 to 180 days 237,549 -
181 to 365 days 4,449,553 1,685,624
˃ 365 days 74,864,414 69,264,730
81,075,078 71,282,154
Total 105,540,520 92,332,287
* The Other Assets Especially Mentioned category pertains to agriculture, housing and small enterprises financing.
** Not past due but impaired category mainly represents restructured exposures.
10.3 Particulars of expected credit loss allowance against advances

September 30, 2024 (Un-audited) December 31, 2023 (Audited)
Stage 1 Stage 2 Stage 3 Total Specific General Total
---------------------------------------------------------------------------
Note (Rupees in '000) ---------------------------------------------------------------------------
Opening balance 759,622 10,410,236 92,332,287 103,502,145 81,783,522 10,146,800 91,930,322
Exchange adjustments (4,289) (141,407) (1,158,164) (1,303,860) 14,650,438 2,289,735 16,940,173
Impact of Adoption of IFRS 9 4,046,484 2,689,194 1,234,015 7,969,693 - - -
Charge for the period / year 562,350 - 3,005,058 3,567,408 894,440 100,364 994,804
Reversals for the period / year (80,642) (2,217,058) (2,412,356) (4,710,056) (4,526,473) (1,367,041) (5,893,514)
481,708 (2,217,058) 592,702 (1,142,648) (3,632,033) (1,266,677) (4,898,710)
Amounts charged off

- agriculture financing 10.5 - - (40,573) (40,573) (153,498) - (153,498)
Amounts written off - - (54,958) (54,958) (316,142) - (316,142)
Transfers (out) / in - net - (1,816,510) 1,870,621 54,111 - - -
Closing balance 5,283,525 8,924,455 94,775,930 108,983,910 92,332,287 11,169,858 103,502,145
10.4 Advances - Particulars of expected credit loss allowance
10.4.1 Advances - Category of classification

Expected credit
Outstanding
loss allowance
amount
held
--------------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------
Domestic
Performing Stage 1 475,050,833 5,038,544

Substandard 2,627,770 1,753,463
Doubtful 258,422 125,921
Loss 21,548,654 20,552,872
24,434,846 22,432,256
Sub Total 548,512,059 29,455,562
Overseas
Performing Stage 1 63,050,552 244,981

Substandard 2,906,137 733,505
Doubtful 17,398,562 11,466,979
Loss 63,293,362 60,143,190
83,598,061 72,343,674
Sub Total 179,739,575 79,528,348
Total 728,251,634 108,983,910
10.4.2 The Bank has availed the benefit of Forced Sale Value (FSV) of certain mortgaged properties held as collateral against non-performing advances as allowed under
BSD Circular 01 of 2011. Had the benefit under the said circular not been taken by the Bank, the specific provision against non-performing advances would have been
higher by Rs. 90.836 million (December 31, 2023: Rs. 44.193 million).
The Bank has also availed FSV benefit of certain mortgaged properties held as collateral against non-performing advances of overseas branches in accordance with
the applicable regulations in the respective countries where the branches operate. Had the benefit not been taken by the Bank, the specific provision against non-
performing advances would have been higher by Rs. 3,850.118 million (December 31, 2023: Rs. 6,114.438 million) for the overseas branches.
The FSV benefit availed is not available for the distribution of cash or stock dividend to shareholders.
10.5 These represent non-performing advances for agriculture finance which have been classified as loss, are fully provided and are in default for more than 3 years. These
non-performing advances have been charged off by extinguishing them against the provision held in accordance with the SBP's Prudential Regulations for Agriculture
Financing. This charge off does not, in any way, prejudice the Bank's right of recovery from these customers.
2024 2023
Note ------- (Rupees in '000) -------
11. PROPERTY AND EQUIPMENT
Capital work-in-progress 11.1 7,981,434 1,322,980

Property and equipment 70,249,149 63,764,663
78,230,583 65,087,643
11.1 Capital work-in-progress
Civil works 7,091,162 734,319

Equipment 890,272 588,661
7,981,434 1,322,980
(Un-audited)
January - January -
11.2 Additions to Property and equipment - net September September
2024 2023
---------- (Rupees in '000) --------
The following additions have been made to property and equipment during the period:
Capital work-in-progress - net additions 6,658,454 749,922
Property and equipment

Freehold land 770,331 -
Leasehold land 2,448,554 -
Building on freehold land 72,355 -
Leasehold improvements 1,389,211 787,367
Furniture and fixtures 856,194 132,424
Electrical, office and computer equipment 4,061,700 1,147,475
Vehicles 985,454 168,910
10,583,799 2,236,176
Total 17,242,253 2,986,098

(Un-audited)
January - January -
September September
2024 2023
------- (Rupees in '000) -----
11.3 Disposal of Property and equipment
The net book value of Property and equipment disposed off during the period is as follows:
Building on leasehold land - 54,824

Leasehold land - 1,444,780
Leasehold Improvement 11,648 1,455
Furniture and fixtures 2,381 719
Electrical, office and computer equipment 2,904 1,664
Vehicles 3,395 15,365
20,328 1,518,807
Total 20,328 1,518,807
12. RIGHT-OF-USE ASSETS September 30, 2024 (Un-audited) December 31, 2023 (Audited)
Buidlings Others Total Buidlings Others Total
------------------------------------------ (Rupees in '000) ---------------------------------------------
At January 1,
Cost 13,834,046 182,562 14,016,608 12,400,452 69,255 12,469,707
Accumulated Depreciation (5,452,800) (66,779) (5,519,579) (4,640,808) (21,348) (4,662,156)
Net Carrying amount at January 1, 8,381,246 115,783 8,497,029 7,759,644 47,907 7,807,551
Additions during the period / year 3,451,886 19,761 3,471,647 3,172,770 124,327 3,297,097
Deletions during the period / year (607,726) (4,789) (612,515) (350,965) (1,448) (352,413)
Depreciation charge for the year (1,704,190) (78,264) (1,782,454) (2,231,324) (55,003) (2,286,327)
Exchange rate adjustments (626) - (626) 31,121 - 31,121
Net Carrying Amount 9,520,590 52,491 9,573,081 8,381,246 115,783 8,497,029
2024 2023
13. INTANGIBLE ASSETS ------- (Rupees in '000) -----
Capital work-in-progress - Computer software 522,834 173,916

Intangible assets - Computer software 1,948,438 2,284,918
2,471,272 2,458,834
(Un-audited)
January - January -
September September
2024 2023
13.1 Additions to intangible assets - net ------- (Rupees in '000) -----
The following additions have been made to intangible assets during the period:
Capital work-in-progress - net 348,918 69,468

Directly purchased - Intangible assets 397,005 410,052
745,923 479,520
2024 2023
14. DEFERRED TAX (LIABILITIES) / ASSETS ------- (Rupees in '000) -------
Deductible temporary differences on
Credit loss allowance against advances and off balance sheet obligations 5,788,596 679,351
Workers' Welfare Fund 5,492,228 4,406,522
11,280,824 5,085,873
Taxable temporary differences on
Surplus on revaluation of fixed assets / non-banking assets (1,555,189) (1,610,164)
Surplus on revaluation of investments (53,256,957) (3,606,464)
Post retirement employee benefits (841,433) (841,433)
Accelerated tax depreciation (510,570) (884,730)
Others (73,981) (64,971)
(56,238,130) (7,007,762)
(44,957,306) (1,921,889)
2024 2023
15. OTHER ASSETS Note ------- (Rupees in '000) -------
Income / mark-up accrued in local currency 142,375,310 121,606,612

Income / mark-up accrued in foreign currencies 15.1 3,037,209 3,056,696
Receivable from staff retirement fund 760,200 4,593,952
Receivable from other banks against telegraphic transfers and demand drafts 55,197 38,339
Unrealised gain on forward foreign exchange contracts 1,536,601 4,234,338
Rebate receivable - net 4,789,204 1,868,330
Unrealised gain on derivative financial instruments 25 3,311 32,379
Suspense accounts 206,650 22,467
Stationery and stamps on hand 454,249 593,636
Non-banking assets acquired in satisfaction of claims 39,656 42,075
Advances, deposits, advance rent and other prepayments 3,177,501 2,045,543
Dividend receivable 33,075 -
Commission receivable - Bancassurance & Branchless Banking 692,664 688,884
Receivable against fraud & forgery and looted notes 488,657 475,390
Acceptances 22 28,741,023 17,584,022
Others 2,712,640 1,961,201
189,103,147 158,843,864
Expected credit loss allowance / provision held against other assets 15.2 (1,068,872) (1,150,885)
Other assets - net of expected credit loss allowance 188,034,275 157,692,979
Surplus / (Deficit) on revaluation of non-banking assets acquired in
satisfaction of claims 23 - -
188,034,275 157,692,979
15.1 Unrealised mark-up held in suspense amounting to Rs. 45,235.207 million (December 31, 2023: Rs. 39,977.644 million) against non-performing
overseas advances has been netted off.
2024 2023
15.2 Expected credit loss allowance held against other assets ------- (Rupees in '000) -------
Advances and other receivables 54,108 54,108

Receivable against fraud & forgery and looted notes 488,657 475,390
Others 526,107 621,387
1,068,872 1,150,885
15.2.1Movement in expected credit loss allowance held against other assets
Opening balance 1,150,885 1,244,972

Exchange adjustments (15,891) 83,333
Charge for the period / year 33,934 97,737
Reversals for the period / year (45,083) (126,753)
(11,149) (29,016)
Transfers out - net (52,250) -
Amounts written off (2,723) (148,404)
Closing balance 1,068,872 1,150,885
16. CONTINGENT ASSETS
There were no contingent assets as at September 30, 2024 (December 31, 2023: Nil).
2024 2023
17. BILLS PAYABLE ------- (Rupees in '000) -------
In Pakistan 29,199,445 26,095,575
Outside Pakistan 885,499 1,801,566
30,084,944 27,897,141
18. BORROWINGS
Secured
Borrowings from the State Bank of Pakistan under:
Export refinance scheme 26,669,759 37,076,201
Refinance facility for modernization of SME 1,412,779 1,353,958
Long term financing facility 11,351,278 13,991,026
Renewable energy scheme 1,059,645 873,755
Temporary economic refinance facility 15,589,644 16,886,679
Refinance facility for combating COVID-19 213,522 332,674
Repurchase agreement borrowings 4,138,600,153 2,717,697,641
Financing facility for storage of agriculture products 24,063 34,375
Refinance for women entrepreneurs 49,993 61,200
4,194,970,836 2,788,307,509
Others
Repurchase agreement borrowings 64,137,828 15,966,300
4,259,108,664 2,804,273,809
Unsecured
Call borrowings 43,467,328 10,603,000
Overdrawn nostro accounts 1,379,370 593,745
44,846,698 11,196,745
4,303,955,362 2,815,470,554
19. DEPOSITS AND OTHER ACCOUNTS
September 30, 2024 (Un-audited) December 31, 2023 (Audited)

In Local In Foreign In Local In Foreign
Total Total
Currency Currencies Currency Currencies
--------------------------------------------------------------------------------- (Rupees in '000) -----------------------------------------------------------------------------
Customers
Current deposits 1,041,642,201 401,699,304 1,443,341,505 832,767,622 248,746,308 1,081,513,930
Savings deposits 857,457,384 31,116,057 888,573,441 698,079,461 55,703,568 753,783,029
Term deposits 107,513,786 114,082,217 221,596,003 158,820,636 108,618,487 267,439,123
Others 41,219,913 8,653,202 49,873,115 18,975,751 6,969,636 25,945,387
2,047,833,284 555,550,780 2,603,384,064 1,708,643,470 420,037,999 2,128,681,469
Financial Institutions
Current deposits 15,041,743 4,699,481 19,741,224 24,795,264 6,771,975 31,567,239
Saving deposits 202,080,282 70,513 202,150,795 174,456,017 94,660 174,550,677
Term deposits 78,450 3,118,527 3,196,977 1,925,450 4,293,020 6,218,470
217,200,475 7,888,521 225,088,996 201,176,731 11,159,655 212,336,386
2,265,033,759 563,439,301 2,828,473,060 1,909,820,201 431,197,654 2,341,017,855
19.1 This includes deposits eligible to be covered under insurance arrangements in accordance with DPC Circular No. 04 dated June 22, 2018
amounting to Rs. 1,607,077.723 million (December 31, 2023: Rs 1,376,823.088 million).
20. LEASE LIABILITIES (Un-audited) (Audited)

2024 2023
------- (Rupees in '000) -----
Opening balance 10,339,867 9,418,000
Addition during the period / year 3,471,647 3,297,097
Lease payments including interest (2,693,118) (3,202,250)
Interest expense 1,077,013 1,217,778
Termination/modification (659,628) (390,758)
Exchange adjustments (402) -
Closing balance 11,535,379 10,339,867
2024 2023
20.1 Liabilities Outstanding ------- (Rupees in '000) -----
Not later than one year 181,353 302,536
Later than one year and upto five years 5,219,330 4,819,731
Over five years 6,134,696 5,217,600
Total 11,535,379 10,339,867
21. SUBORDINATED DEBT

The Bank has issued fully paid up, rated, listed, perpetual, unsecured, subordinated, non-cumulative and contingent convertible debt instruments in the nature of Term
Finance Certificates (TFCs) under Section 66 of the Companies Act, 2017 which qualify as Additional Tier I Capital as outlined by State Bank of Pakistan (SBP) under
BPRD Circular No. 6 dated August 15, 2013.
Salient features of the Additional Tier 1 issue are as follows:
Issue Size Rs. 10,000 million
Issue Date January 29, 2019
Tenor Perpetual (i.e. no fixed or final redemption date)
Rating “AA+” (Double A Plus) by VIS Credit Rating Company Limited
Security Unsecured
Mark-up rate The TFCs shall carry mark-up at the rate of 3 Month KIBOR + 1.55%.
Mark-up payment frequency Mark-up shall be payable quarterly in arrears, on a non-cumulative basis
The Bank may, at its sole discretion, call the TFCs, at any time after five years from the Issue Date subject to the prior
Call option
approval of the SBP.
Mark-up on the TFCs shall only be paid from the current year's earnings and if the Bank is fully compliant with SBP’s
Lock-in clause
Minimum Capital Requirement (MCR), Capital Adequacy Ratio (CAR) and Liquidity Ratio (LR) requirements.
The TFCs shall, at the discretion of the SBP, be either permanently converted into ordinary shares or permanently
Loss absorbency clause written off (partially or in full) pursuant to the loss absorbency clause as stipulated in the “Instructions for Basel III
Implementation in Pakistan” issued vide BPRD Circular No. 6 dated August 15, 2013.
Note (Un-audited) (Audited)

2024 2023
22. OTHER LIABILITIES ------- (Rupees in '000) -------
Mark-up / return / interest payable in local currency 59,514,892 47,156,831
Mark-up / return / interest payable in foreign currencies 1,112,716 1,501,633
Accrued expenses 7,211,265 7,192,275
Branch adjustment account 41,197 749,289
Deferred income 1,993,656 1,332,699
Current taxation (provisions less payments) 22.1 18,881,616 7,015,440
Unearned commission and income on bills discounted 1,644,174 357,949
Credit loss allowance against off-balance sheet obligations 22.2 2,126,192 1,056,385
Unrealised loss on forward foreign exchange contracts 1,776,952 2,735,338
Unrealised loss on derivative financial instruments 18,640 5,762
Liability against trading of securities 986,145 -
Payable to staff retirement fund 28,588 -
Deferred liabilities 22.3 4,576,547 4,365,167
Workers' Welfare Fund payable 11,208,627 8,992,902
Liabilities against card settlement 700,352 148,039
Dividends payable 346,214 370,889
Unclaimed dividends 379,957 356,426
Acceptances 15 28,741,023 17,584,022
Security deposits 356,100 339,787
Charity fund balance 22,386 21,399
Levies and taxes payable 3,702,752 9,169,996
Clearing and settlement accounts 20,317,741 2,624,454
Others 3,146,741 2,772,983
168,834,473 115,849,665
22.1 The Income Tax returns of the Bank have been filed up to the tax year 2024 (accounting year ended December 31, 2023) and were deemed to be assessed under
section 120 of the Income Tax Ordinance, 2001 (Ordinance).
The income tax authorities have issued amended assessment orders for the tax years 2003 to 2023, and created additional tax demands (including disallowances of
provisions made prior to Seventh Schedule) of Rs.14,080 million (2023: Rs.14,124 million) . The Bank has filed appeals before the various appellate forums against
these amendments. Where the appellate authorities have allowed relief on certain issues, the assessing authorities have filed appeals before higher appellate forums.
Where the appellate authorities have not allowed relief the Bank has filed appeals before higher appellate forums. The management of the Bank is confident that the
appeals will be decided in favor of the Bank.
The tax returns for Azad Kashmir (AK) and Gilgit Baltistan (GB) branches have been filed upto the tax year 2024 (accounting year ended December 31, 2023) under the
provisions of section 120(1) read with section 114 of the Ordinance and in compliance with the terms of the agreement between banks and the Azad Kashmir Council in
May 2005. The returns filed are considered as deemed assessment orders under the law.
The tax authorities have also carried out monitoring for Federal Excise Duty, Sales tax and withholding taxes covering period from year ended 2005 to 2019.
Consequently various addbacks and demands were raised creating a total demand of Rs. 2,632 million (2023: Rs. 2,632 million). The Bank has filed appeals against all
such demands and is confident that these would be decided in the favor of the Bank.
The tax returns for UAE and Qatar branches have been filed upto the year ended December 31, 2023 and Yemen branches have been filed upto the year ended
December 31, 2019 under the provisions of the laws prevailing in the respective countries, and are deemed as assessed unless opened for reassessment.
2024 2023
22.2 Credit loss allowance against off-balance sheet obligations Note ------- (Rupees in '000) -------
Opening balance 1,056,385 882,445
Exchange adjustments (14,771) 203,244
Impact of adoption of IFRS 9 1,037,902 -
Charge / (reversal)
Charge for the period / year 53,410 4,367
Reversals for the period / year (6,734) (33,671)
46,676 (29,304)
Closing balance 2,126,192 1,056,385
22.3 Deferred liabilities
Provision for post-retirement medical benefits 2,851,299 2,590,351

Provision for compensated absences 776,622 779,284
End of service benefits
-Overseas branches 704,663 648,827
-Outsourced services 243,963 346,705
4,576,547 4,365,167
23. SURPLUS ON REVALUATION OF ASSETS (Un-audited)

September 30,
2024
Rupees in '000'
(Deficit) / surplus arising on revaluation of:
- Securities measured at FVOCI - Debt 9.1 102,322,046
- Securities measured at FVOCI - Equity 9.1 3,212,157
- Property and Equipment 39,709,528
- Non-banking assets acquired in satisfaction of claims 15 -
145,243,731
Deferred tax on (deficit) / surplus on revaluation of:
- Securities measured at FVOCI - Debt 50,137,803
- Securities measured at FVOCI - Equity 3,119,154
- Property and Equipment 1,555,189
- Non-banking assets acquired in satisfaction of claims -
54,812,146
90,431,585
(Audited)
December 31,
2023
Rupees in '000'
(Deficit) / surplus arising on revaluation of:
- Available for sale securities-Debt 9.1 3,681,662
- Available for sale securities-Equity 9.1 3,678,469
- Fixed assets 39,821,957
- Non-banking assets acquired in satisfaction of claims 15 -
47,182,088
Deferred tax on (deficit) / surplus on revaluation of:
- Available for sale securities-Debt 1,804,014
- Available for sale securities-Equity 1,802,450
- Fixed assets 1,610,164
- Non-banking assets acquired in satisfaction of claims -
5,216,628
41,965,460
2024 2023
Note ------- (Rupees in '000) -------
24. CONTINGENCIES AND COMMITMENTS
Guarantees 24.1 324,148,442 286,344,622

Commitments 24.2 938,884,282 1,012,745,024
Other contingent liabilities 24.3 16,355,426 16,116,861
1,279,388,150 1,315,206,507
24.1 Guarantees:
Financial guarantees 118,808,478 124,944,607

Performance guarantees 198,406,164 154,072,480
Other guarantees 6,933,800 7,327,535
324,148,442 286,344,622
2024 2023
24.2 Commitments: Note ------- (Rupees in '000) -------
Documentary credits and short-term trade-related transactions

- letters of credit 329,991,642 303,953,368
Commitments in respect of:

- forward foreign exchange contracts 24.2.2 436,608,906 540,001,109
- forward Government securities transactions 24.2.3 15,882,800 19,956,300
- derivatives 24.2.4 - 366,068
- forward lending 24.2.5 147,370,859 144,577,866
- operating leases 24.2.6 150,349 66,511
600,012,914 704,967,854
Commitments for acquisition of:
- fixed assets 7,364,018 2,998,928
- intangible assets 1,515,708 824,874
8,879,726 3,823,802
938,884,282 1,012,745,024
24.2.1 Commitments to extend credit
The Bank makes commitments to extend credit in the normal course of its business but these being revocable commitments do not attract any significant penalty
or expense if the facility is unilaterally withdrawn.
2024 2023
------- (Rupees in '000) -------
24.2.2 Commitments in respect of forward foreign exchange contracts
Purchase 254,725,497 278,930,255

Sale 181,883,409 261,070,854
436,608,906 540,001,109
24.2.3 Commitments in respect of forward Government securities transactions
Purchase 325,075 16,956,300

Sale 15,557,725 3,000,000
15,882,800 19,956,300
24.2.4 Commitments in respect of derivatives
Cross Currency Swaps - -
FX options
Purchase - 183,034
Sale - 183,034
- 366,068
24.2.5 Commitments in respect of forward lending
Undrawn formal standby facilities, credit lines and

other commitments to lend 24.2.5.1 76,212,325 84,953,615
Others 71,158,534 59,624,251
147,370,859 144,577,866
24.2.5.1 These represent commitments that are irrevocable because they cannot be withdrawn at the discretion of the Bank without the risk of incurring significant penalty
or expense.
2024 2023
Note ------- (Rupees in '000) -------
24.2.6 Commitments in respect of operating leases
Not later than one year 150,349 66,511
Later than one year and not later than five years - -
Later than five years - -
150,349 66,511
24.3 Other contingent liabilities
24.3.1 Claims against the Bank not acknowledged as debts 24.3.2 16,355,426 16,116,861
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). Based on legal advice and / or internal assessments, management is confident that the matters will be decided in the Bank's favour and the possibility of
any outcome against the Bank is remote and accordingly no provision has been made in these unconsolidated condensed interim financial statements.
24.3.2 This includes penalties amounting to Rs. 4.089 billion (2023: Rs. 4.089 billion) were levied during 2016 by the FE Adjudication Court of the State Bank of Pakistan
relating to alleged contraventions of the requirements of foreign exchange regulations with respect to issuance and certification of E-Forms by the Bank to certain
customers (exporters) who failed to submit the export documents there against. Consequently, foreign exchange on account of export proceeds have not been
repatriated. The Bank maintains that it fully discharged its liability, in accordance with the law and has filed a civil suit in the High Court of Sindh challenging the
levy of the penalty. The High Court has granted a stay on action being taken against the Bank. The management, based on the advice from legal counsel, is
confident that the view of the Bank will prevail and the Bank will not be exposed to any loss on this account.
24.3.3 For contingencies relating to taxation, refer note 22.1.

25. Derivative Instruments
Product analysis
Forward purchase contracts of Forward sale contracts of
FX options Cross Currency Swaps Total
Government securities Government securities
Notional Notional Mark to Notional Mark to Market Notional Mark to Market

Mark to Market Notional principal Mark to Market Loss
principal principal Market principal Gain principal Loss
-------------------------------------------------------------------------------------------------------------------------------------------- (Rupees in '000) --------------------------------------------------------------------------------------------------------------------------------------------
Hedging - - - - - - - - - -
Market making - - - - 325,075 1 15,557,725 (15,330) 15,882,800 (15,329)
- - - - 325,075 1 15,557,725 (15,330) 15,882,800 (15,329)
December 31, 2023 (Audited)

Forward purchase contracts of Forward sale contracts of
FX options Cross Currency Swaps Total
Government securities Government securities
Notional Notional Mark to Notional Mark to Market Notional Mark to Market

Mark to Market Notional principal Mark to Market Gain
principal principal Market principal Gain principal Gain
-------------------------------------------------------------------------------------------------------------------------------------------- (Rupees in '000) --------------------------------------------------------------------------------------------------------------------------------------------
Hedging 183,034 - - - - - - - 183,034 -

Market making 183,034 - - - 16,956,300 26,320 3,000,000 297 20,139,334 26,617
366,068 - - - 16,956,300 26,320 3,000,000 297 20,322,368 26,617
(Un-audited)
January -
January -
September
September 2023
2024
26. MARK-UP / RETURN / INTEREST EARNED ------- (Rupees in '000) -------
On:
Loans and advances 76,571,924 85,627,076
Investments 740,983,709 237,339,948
Lendings to financial institutions 2,344,231 10,331,280
Balances with banks 5,995,934 3,915,135
825,895,798 337,213,439
27. MARK-UP / RETURN / INTEREST EXPENSED
On:
Deposits 163,760,310 118,944,266
Borrowings 550,793,691 106,944,135
Subordinated debt 1,684,277 1,635,830
Cost of foreign currency swaps against foreign currency deposits / borrowings 3,349,112 2,158,825
Lease liability against right-of-use assets 1,077,013 893,342
720,664,403 230,576,398
28. FEE AND COMMISSION INCOME
Branch banking customer fee 1,466,598 1,968,446

Consumer finance related fee 887,277 962,898
Card related fee (debit and credit cards) 2,781,490 2,365,790
Investment banking fee 230,095 263,360
Financial Institution rebate / commission 564,743 448,837
Corporate service charges / facility fee 1,087,435 731,605
Commission on trade 2,360,854 1,574,891
Commission on guarantees 1,076,961 593,215
Commission on cash management 852,766 909,655
Commission on remittances including home remittances - net 3,355,085 2,084,869
Commission on bancassurance 869,807 823,675
Rent on lockers 169,118 167,335
Others 191,279 167,311
15,893,508 13,061,887
29. GAIN / (LOSS) ON SECURITIES - NET
Realised 23,813,057 (1,374,053)
Unrealised - Measured at FVTPL 261,073 13,750
24,074,130 (1,360,303)
(Un-audited)
January - January -
September 2024 September 2023
30. OTHER INCOME ------- (Rupees in '000) -------
Charges recovered 313,184 374,810

Rent on properties 79,225 61,496
Gain on sale of fixed assets - net 148,042 396,875
Gain on sale of subsidiary 7,083,501 -
Gain/(Loss) on sale of Ijarah assets - net 533 (626)
(Loss)/Gain on trading liabilities - net (6,419) 2,712
7,618,066 835,267
31. OPERATING EXPENSES
Total compensation expense 23,281,825 18,230,022
Property expense
Rent and taxes 1,136,766 925,028
Insurance 228,995 197,941
Utilities cost 2,460,098 2,048,798
Security (including guards) 1,228,652 1,086,752
Repair and maintenance (including janitorial charges) 368,059 318,291
Depreciation on owned fixed assets 1,009,926 903,742
Depreciation on right-of-use assets 1,782,454 1,695,646
Depreciation on non-banking assets acquired in satisfaction of claims 2,420 2,259
Others 35,675 46,024
8,253,045 7,224,481
Information technology expenses
Software maintenance 2,483,947 2,149,563
Hardware maintenance 462,621 443,871
Depreciation 1,313,672 991,241
Amortisation 716,175 748,237
Network charges 804,450 786,086
Consultancy charges 218,856 191,311
5,999,721 5,310,309
Other operating expenses
Legal and professional charges 357,773 1,230,789
Outsourced service costs 1,502,695 1,330,312
Commission paid to branchless banking agents 230,293 265,090
Commission paid to sales force 1,439,521 1,448,467
Travelling and conveyance 181,837 186,779
Clearing charges 252,061 211,131
Depreciation - others 1,730,256 1,203,456
Depreciation on Islamic financing against leased assets 58,652 105,607
Training and development 149,446 77,598
Postage and courier charges 345,773 253,462
Communication 213,667 186,913
Stationery and printing 1,547,947 1,039,559
Marketing, advertisement and publicity 1,465,623 588,811
Donations 197,391 50,078
Auditors' remuneration 107,254 98,763
Insurance 90,341 94,833
Deposit protection premium expense 1,652,188 1,409,413
Cash transportation and sorting charges 897,443 813,759
Entertainment 296,155 191,817
Office running expenses 275,966 198,955
Vehicle expenses 403,043 174,355
Banking service charges 4,738,200 3,471,840
Repairs and maintenance 1,302,904 1,029,914
Miscellaneous expenses 990,009 536,194
20,426,438 16,197,895
57,961,029 46,962,707
(Un-audited)
January - January -
September September
2024 2023
32. OTHER CHARGES Note --------------- (Rupees in '000) ---------------
Penalties imposed by the SBP 2,306 31,988

Penalties imposed by other regulatory bodies of overseas branches 30,660 215
32,966 32,203
33. CREDIT LOSS ALLOWANCE & WRITE OFFS - NET
Credit loss allowance/ Provision for dimunition in value of investments 9.2 (250,046) 5,094,684
Credit loss allowance/ Reversal of provision against loans and advances 10.3 (1,142,648) (3,040,735)
Bad debts written off directly 36,211 36,501
Credit loss allowance/ Provision against other assets - net 15.2.1 (11,149) (31,905)
Credit loss allowance/ Reversal of provision against off-balance sheet obligations - net 22.2 46,676 69,047
Recovery of written-off / charged off bad debts (314,078) (279,474)
Other provisions and write-offs 161,798 106,355
(1,473,236) 1,954,473
34. TAXATION
Current 55,274,229 37,798,439
Prior years (267,820) -
Deferred (2,206,108) 386,633
52,800,301 38,185,072
(Un-audited)
January - January -
September September
2024 2023
35. EARNINGS PER SHARE --------------- (Rupees in '000) ---------------
Profit after taxation for the period 54,985,887 40,865,584
------- (Number of shares) -------
Weighted average number of ordinary shares 1,224,179,687 1,224,179,687
---------- (Rupees) ----------

Earnings per share - basic and diluted 44.92 33.38
There were no convertible dilutive potential ordinary shares outstanding as at September 30, 2024 and September 30, 2023.
36. FAIR VALUE OF FINANCIAL INSTRUMENTS
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.
In the opinion of the management, the fair value of the remaining financial assets and liabilities are not significantly different from their carrying
values since these are either short-term in nature or, in the case of customer loans and deposits, are frequently repriced.
36.1 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 assets 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).
36.1.1 Valuation techniques used in determination of fair values within level 2 and level 3.
Item Valuation approach and input used

Federal Government securities The fair value of Federal Government securities is determined using the prices
/ rates available on Mutual Funds Association of Pakistan (MUFAP) /
Bloomberg.
Non-Government debt securities The fair value of non-government debt securities is determined using the prices
/ rates from MUFAP.
Foreign debt securities The fair value of foreign corporate and foreign government securities is
determined using the rates from Bloomberg.
Mutual Fund units The fair values of investments in mutual fund units are determined based on
their net asset values as published at the close of each business day.
Forward foreign exchange contracts and Forward The fair values of forward foreign exchange contracts and forward Government
Government securities transactions securities transactions are determined using forward pricing calculations.
Derivatives The fair valuation techniques include forward pricing and swap models using
present value calculations.
Fixed assets and non-banking assets acquired in Land, buildings and non-banking assets acquired in satisfaction of claims are
satisfaction of claims revalued on a periodic basis using professional valuers. The valuation is based
on their assessment of the market value of the assets. The effect of changes in
the unobservable inputs used in the valuations cannot be determined with
certainty. Accordingly, a qualitative disclosure of sensitivity has not been
presented in these unconsolidated condensed interim financial statements.
36.2 Fair value of financial assets
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:

Fair value
Carrying value
Level 1 Level 2 Level 3 Total
On balance sheet financial instruments ---------------------------------------------- (Rupees in '000) ----------------------------------------------
Financial assets measured at fair value
Investments
- Federal Government securities 5,821,443,762 - 5,821,443,762 - 5,821,443,762
- Ordinary shares of listed companies 13,104,742 13,104,742 - - 13,104,742
- Foreign Bonds - Market Treasury Bills 163,660,111 - 163,660,111 - 163,660,111
- Foreign bonds - sovereign 95,015,073 - 95,015,073 - 95,015,073
- Foreign bonds - others 1,265,164 - 1,265,164 - 1,265,164
- Non-Government debt securities 2,179,220 - 2,179,220 - 2,179,220
- Real Estate Investment Trust units 768,720 768,720 - - 768,720
6,097,436,792 13,873,462 6,083,563,330 - 6,097,436,792
Financial assets - disclosed but not
measured at fair value
Investments
- Federal Government securities 274,439,606 - 273,005,416 - 273,005,416
- Foreign Bonds - sovereign 17,005,268 - 16,508,389 - 16,508,389
- Foreign Bonds - others 1,464,943 - 1,377,861 - 1,377,861
323,995,314 - 322,229,832 - 322,229,832
6,421,432,106 13,873,462 6,405,793,162 - 6,419,666,624
Off-balance sheet financial instruments

measured at fair value
Foreign exchange contracts - purchased and sold 436,608,906 - (240,351) - (240,351)
FX options - purchased and sold - - - - -
Forward Government Securities - purchased and sold 15,882,800 - (15,329) - (15,329)

Fair value
Carrying value
---------------------------------------- (Rupees in '000) ----------------------------------------
On balance sheet financial instruments
Financial assets measured at fair value
Investments
- Federal Government securities 3,878,565,908 - 3,878,565,908 - 3,878,565,908
- Foreign bonds - sovereign 56,224,631 - 56,224,631 - 56,224,631
- Foreign bonds - others 1,253,562 - 1,253,562 - 1,253,562
- Ordinary shares of listed companies 10,765,935 10,765,935 - - 10,765,935
- Real Estate Investment Trust units 616,232 616,232 - - 616,232
4,017,462,966 11,382,167 4,006,080,799 - 4,017,462,966
Financial assets - disclosed but not measured at
fair value
Investments
- Federal Government Securities 303,809,670 - 280,259,649 - 280,259,649
- Foreign Bonds - sovereign 20,187,556 - 19,111,088 - 19,111,088
- Foreign Bonds - others 1,494,294 - 1,366,160 - 1,366,160
362,837,866 - 337,640,922 - 337,640,922
4,380,300,832 11,382,167 4,343,721,721 - 4,355,103,888
Off-balance sheet financial instruments - measured at

fair value
Foreign exchange contracts - purchased and sold 540,001,109 - 1,499,000 - 1,499,000
FX options - purchased and sold 366,068 - - - -
Forward Government Securities - purchased and sold 19,956,300 26,617 - 26,617
36.3 Fair Value of non-financial assets

Fair value
Carrying value
` Level 1 Level 2 Level 3 Total
------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------
Fixed Assets 53,673,727 - - 53,673,727 53,673,727
Non-banking assets acquired in satisfaction of claims 39,656 - - 39,656 39,656

53,713,383 - - 53,713,383 53,713,383

Fair value
Carrying value
------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------
Fixed Assets 50,716,919 - - 50,716,919 50,716,919
Non-banking assets acquired in satisfaction of claims 42,075 - - 42,075 42,075
50,758,994 - - 50,758,994 50,758,994
36.4 Certain categories of fixed assets (land and buildings) and non-banking assets acquired in satisfactions of claims are carried at
revalued amounts (level 3 measurement) determined by professional valuers based on their assessment of the market values.
37. SEGMENT INFORMATION
37.1 Segment details with respect to business activities
For the nine months ended September 30, 2024 (Un-audited)
Corporate / International
Islamic
Commercial Treasury Branch Banking branch Others Total
Banking
Banking operations
---------------------------------------------------------------------------------------------------------------- (Rupees in '000) ------------------------------------------------------------------------------------------------------
Profit and Loss
Net mark-up / return / profit 40,060,227 143,133,381 (119,327,689) 27,383,604 15,484,545 (1,502,673) 105,231,395
Inter segment (expense) / revenue - net (30,957,556) (212,876,402) 234,733,638 - - 9,100,320 -
Non mark-up / return / interest income 6,519,575 25,543,193 9,413,402 1,937,210 10,034,937 7,842,959 61,291,276
Total Income 15,622,246 (44,199,828) 124,819,351 29,320,814 25,519,482 15,440,606 166,522,671
Segment direct expenses 1,477,721 549,422 38,640,669 4,291,786 5,931,003 9,319,118 60,209,719
Inter segment expense allocation 288,551 710,968 6,219,441 - - (7,218,960) -
Total expenses 1,766,272 1,260,390 44,860,110 4,291,786 5,931,003 2,100,158 60,209,719
Credit loss allowance - net 174,376 (164) 138,476 (43,904) 1,109,466 94,986 1,473,236
Profit / (loss) before taxation 14,030,350 (45,460,382) 80,097,717 24,985,124 20,697,945 13,435,434 107,786,188
Islamic
Banking
Banking operations
---------------------------------------------------------------------------------------------------------------- (Rupees in '000) ------------------------------------------------------------------------------------------------------

Profit and Loss
Net mark-up / return / profit 48,425,183 118,834,530 (87,586,223) 14,543,186 13,951,518 (1,531,153) 106,637,041
Inter segment (expense) / revenue - net (44,585,357) (167,993,201) 202,189,739 - - 10,388,819 -
Non mark-up / return / interest income 4,902,885 7,024,381 8,652,184 438,074 (8,949,442) 1,057,321 13,125,403
Total Income 8,742,711 (42,134,290) 123,255,700 14,981,260 5,002,076 9,914,987 119,762,444
Segment direct expenses 1,313,121 433,497 30,986,612 2,630,508 6,106,618 7,074,616 48,544,972
Inter segment expense allocation 313,105 77,683 6,830,129 - 436,728 (7,657,645) -
Total expenses 1,626,226 511,180 37,816,741 2,630,508 6,543,346 (583,029) 48,544,972
Provision reversal / (charge) - net 1,565,362 (543,666) 279,684 1,966 8,622,575 (2,092,737) 7,833,184
Profit / (loss) before taxation 8,681,847 (43,189,136) 85,718,643 12,352,718 7,081,305 8,405,279 79,050,656
As at September 30, 2024 (Un-audited)
Islamic
Banking
Banking operations
---------------------------------------------------------------------------------------------------------------- (Rupees in '000) ------------------------------------------------------------------------------------------------------
Balance Sheet
Cash & Bank balances 27,083 116,944,189 100,216,430 30,966,097 138,392,615 - 386,546,414
Investments 10,647,694 5,760,466,699 - 354,485,515 296,214,663 3,556,845 6,425,371,416
Net inter segment lending - - 1,836,066,588 - 52,527,371 33,199,618 1,921,793,577
Lendings to financial institutions - 1,076,737 - - - - 1,076,737
Advances - performing 404,016,380 2,258 53,305,595 56,499,947 88,956,848 3,229,719 606,010,747
Advances - non-performing net 1,256,022 - 560,513 146,104 11,254,387 39,951 13,256,977
Others 11,351,726 109,440,142 74,450,481 20,835,679 14,183,276 48,047,907 278,309,211
Total Assets 427,298,905 5,987,930,025 2,064,599,607 462,933,342 601,529,160 88,074,040 9,632,365,079
Islamic
Banking
Banking operations
---------------------------------------------------------------------------------------------------------------- (Rupees in '000) ------------------------------------------------------------------------------------------------------
Borrowings 44,252,184 4,218,775,958 4,318,656 35,799,843 808,721 - 4,303,955,362

Subordinated debt - - - - - 10,000,000 10,000,000
Deposits and other accounts 152,004,336 497,036 1,889,211,578 324,875,220 461,346,215 538,675 2,828,473,060
Net inter segment borrowing 218,872,334 1,686,309,956 - 16,611,287 - - 1,921,793,577
Others 5,381,277 83,641,792 100,640,455 10,206,534 27,302,278 28,239,766 255,412,102
Total Liabilities 420,510,131 5,989,224,742 1,994,170,689 387,492,884 489,457,214 38,778,441 9,319,634,101
Equity 6,788,774 (1,294,717) 70,428,918 75,440,458 112,071,946 49,295,599 312,730,978
Total Equity & liabilities 427,298,905 5,987,930,025 2,064,599,607 462,933,342 601,529,160 88,074,040 9,632,365,079
Contingencies and Commitments 664,087,757 237,377,820 113,841,877 4,822,702 257,750,050 1,507,944 1,279,388,150
As at December 31, 2023 (Audited)

Islamic
Banking
Banking operations
---------------------------------------------------------------------------------------------------------------- (Rupees in '000) ------------------------------------------------------------------------------------------------------
Balance Sheet
Cash & Bank balances 11,358 91,246,445 101,463,285 27,886,564 87,423,316 - 308,030,968
Investments 12,055,059 3,829,326,862 - 331,496,374 199,730,588 12,607,788 4,385,216,671
Net inter segment lending - - 1,291,495,324 8,009,487 104,559,473 146,476,492 1,550,540,776
Lendings to financial institutions - 21,947,852 - 12,500,000 - - 34,447,852
Advances - performing 391,683,285 9,872 50,956,184 47,108,009 107,411,872 3,188,071 600,357,293
Advances - non-performing net 2,710,229 - 614,905 79,176 9,792,924 10,999 13,208,233
Others 18,344,061 92,057,395 38,605,116 21,064,320 15,071,413 48,594,180 233,736,485
Total Assets 424,803,992 4,034,588,426 1,483,134,814 448,143,930 523,989,586 210,877,530 7,125,538,278
Borrowings 57,979,951 2,739,257,686 4,506,465 13,726,452 - - 2,815,470,554

Subordinated debt - - - - - 10,000,000 10,000,000
Deposits and other accounts 105,887,403 199,712 1,532,602,546 378,100,209 324,227,985 - 2,341,017,855
Net inter segment borrowing 245,388,446 1,305,152,330 - - - - 1,550,540,776
Others 2,062,665 8,066,357 42,277,586 1,578,750 94,288,601 7,734,603 156,008,562
Total Liabilities 411,318,465 4,052,676,085 1,579,386,597 393,405,411 418,516,586 17,734,603 6,873,037,747
Equity 13,485,527 (18,087,659) (96,251,783) 54,738,519 105,473,000 193,142,927 252,500,531
Total Equity & liabilities 424,803,992 4,034,588,426 1,483,134,814 448,143,930 523,989,586 210,877,530 7,125,538,278
- -
Contingencies and Commitments 666,470,041 317,073,549 36,229,803 6,642,138 288,041,327 749,649 1,315,206,507
38. RELATED PARTY TRANSACTIONS
The Bank has related party transactions with its parent, directors, key management personnel, subsidiaries, associates and
other related parties including employee benefit schemes of the Bank.
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 person of similar standing. Contributions to and accruals in respect of staff retirement benefits
and other benefit plans are made in accordance with the actuarial valuations / terms of the contribution plan. Remuneration to
the executives / officers is determined in accordance with the terms of their appointment.
Details of transactions and balances with related parties, other than those which have been disclosed elsewhere in these
unconsolidated condensed interim financial statements, are as follows:

Key
Other related
Parent Directors management Subsidiaries Associates
parties
personnel
----------------------------------------------------------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------------------------
Statement of financial position
Balances with other banks

In current accounts - - - - - 545,836
In deposit accounts - - - - - -
- - - - - 545,836
Lendings to financial institutions

Opening balance - - - - - 804,102
Addition during the period - - - - - 2,128,469
Repaid during the period - - - - - (2,932,571)
Transfers in / (out) - net - - - - - -
Closing balance - - - - - -
Investments
Opening balance - - - 3,955,223 1,657,486 5,287,396
Investment made during the period - - - 1,000,000 - 885,450
Investment disposed off / redeemed during the period - - - (2,855,223) - (2,500,000)
Transfers in / (out) - net - - - - - (37,406)
Closing balance - - - 2,100,000 1,657,486 3,635,440
Credit loss allowance for diminution in value of investments - - - - 1,417,485 -
Provision written off - - - - - -
Advances
Opening balance - 1,286 529,196 - - 392
Addition during the period - 5,790 352,942 - - 3,377
Repaid during the period - (5,820) (395,091) - - (3,666)
Transfers in / (out) - net - - 73,244 - - -
Closing balance - 1,256 560,291 - - 103
Credit loss allowance held against advances - - - - - -
Fixed Asset / Capital work in progress - - - - - 131,680
Other Assets
Income / mark-up accrued - - - - - -
Receivable from staff retirement fund - - - - - 760,200
Prepaid insurance - - - - 306,840 -
Dividend Receivable - - - - - -
Other receivable - - - 14,206 - 51,152
Credit loss allowance against other assets - - - - - -
Borrowings
Opening balance - - - 3,320 - 402,800
Borrowings during the period - - - - - 37,937,267
Settled during the period - - - (3,320) - (37,128,367)
Closing balance - - - - - 1,211,700
Deposits and other accounts

Opening balance 14,362 5,149,234 114,762 1,055,328 12,863,124 2,621,079
Received during the period 67,010,394 27,543,555 1,649,574 50,936,176 518,211,927 349,085,277
Withdrawn during the period (67,017,233) (25,699,307) (1,642,312) (51,542,917) (523,879,484) (350,066,802)
Transfers in - net - - 1,756 (82,810) - 2,117,040
Closing balance 7,523 6,993,482 123,780 365,777 7,195,567 3,756,594

Key
Other related
parties
personnel
----------------------------------------------------------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------------------------
Other Liabilities
Interest / mark-up payable on deposits and borrowings 392 33,311 806 2,274 76,028 45,545
Dividend payable - 55 4 - - -
Payable to staff retirement fund - - - - - 28,588
Unearned income - - - 26 - 18,200
Other payable - - - - - 18,775
Contingencies and Commitments

Letters of credit - - - - - 9,320

Key
Other related
parties
personnel
----------------------------------------------------------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------------------------
Statement of financial position
Balances with other banks

In current accounts - - - 647,251 - -
In deposit accounts - - - - - -
- - - 647,251 - -
Lendings to financial institutions

Opening balance - - - - - -
Addition during the year - - - - - 12,674,229
Repaid during the year - - - - - (11,870,127)
Transfers in / (out) - net - - - - - -
Closing balance - - - - - 804,102
Investments
Opening balance - - - 2,955,223 2,024,126 5,300,368
Investment made during the year - - - 1,000,000 225,000 -
Investment disposed / written off during the year - - - - (366,640) (58,518)
Transfers in / (out) - net - - - - (225,000) 45,546
Closing balance - - - 3,955,223 1,657,486 5,287,396
Provision for diminution in value of investments - - - - 1,417,485 1,160,263
Advances
Opening balance - 480 318,625 - - 17,808,043
Addition during the year - 5,664 544,583 - - 14,944,269
Repaid during the year - (4,992) (497,605) - - (33,077,402)
Transfers in / (out) - net - 134 163,593 - - 325,482
Closing balance - 1,286 529,196 - - 392
Provision held against advances - - - - - -


Key
Other related
parties
personnel
----------------------------------------------------------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------------------------
Other Assets
Interest mark-up accrued - - 8,612 - - 120,906
Receivable from staff retirement fund - - - - - 4,593,951
Prepaid insurance - - - - 100,000 -
Capital work in progress - - - - - 29,000
Other receivable - - - 60,217 - -
Borrowings
Opening balance - - - - - -
Borrowings during the year - - - 3,320 - 27,041,450
Settled during the year - - - - - (26,638,650)
Closing balance - - - 3,320 - 402,800
Deposits and other accounts

Opening balance 14,327 13,924,363 68,837 70,757 1,665,575 16,000,091
Received during the year 123,898,655 64,480,148 1,619,139 20,241,079 385,943,559 487,996,157
Withdrawn during the year (123,898,620) (73,338,287) (1,609,785) (20,140,705) (374,746,010) (499,662,860)
Transfer in - 83,010 36,571 884,197 - (1,712,309)
Closing balance 14,362 5,149,234 114,762 1,055,328 12,863,124 2,621,079
Other Liabilities
Interest / mark-up payable on deposits and borrowings - 17,676 188 - 39,581 10,418
Dividend payable - - - - - -
Payable to staff retirement fund - - - - - -
Unearned income - - - 536 - 47,262
Other payable - 4,310 - - 5,000 14,583
Contingencies and Commitments

Letter of guarantee - - - - - -
Forward Government securities - sale - - - - - -

Key
Other related
parties
personnel
Profit and loss account----------------------------------------------------------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------------------------
Income
Mark-up / return / interest earned - - 25,280 - - 21,909
Commission / charges recovered - 229 1,889 1,448 14,257 11,235
Dividend income - - - - 54,613 445,292
Net gain on sale of securities - - - - - -
Other income - - - 2,630 - 45,726
Gain on sale of subsidary - - - 7,083,501 - -
Gain on sale of fixed assets - - 36 - 1,905 -
Reversal of provision - - - - - -
Switch revenue - - - - - 336,478
Management fee - - - 20,945 - -

Key
Other related
parties
personnel
----------------------------------------------------------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------------------------
Expense
Mark-up / return / interest paid 64,336 200,807 14,601 112,538 1,222,110 570,522
Remuneration paid - - 956,534 - - -
Post employment benefits - - - - - -
Directors' fees and allowances - 78,540 - - - -
Charge for defined contribution plans - - 24,794 - - 488,651
Charge for defined benefit plans - - 7,706 - - 660,638
Provision - - - - - -
Other expenses - - - - - 317,550
Clearing charges - - - - - 138,980
Membership, subscription, sponsorship and
maintenance charges - - 2,635 - - 14,534
Other Information
Dividend paid 20,847,054 717,419 23,082 - 38,348 5,255,358
Insurance premium paid - - - - 759,967 -
Insurance claims settled - - - - 337,621 -

Key
Other related
parties
personnel
Profit and loss account----------------------------------------------------------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------------------------
Income
Mark-up / return / interest earned - - 15,620 - - 2,178,926
Commission / charges recovered - 64 977 904 14,145 14,663
Dividend income - - - 85,571 5,002 440,217
Net gain on sale of securities - - - - 32,413 -
Other income - - - 2,043 - 32,024
Gain on sale of fixed assets - - 7,072 - 1,090 -
Reversal of provision - - - - - 7,034
Switch revenue - - - - - 249,996
Management fee - - - 59,020 - -
Expense
Mark-up / return / interest paid 2,287 281,364 7,907 7,233 471,459 349,089
Remuneration paid - - 917,177 - - -
Post employment benefits - - 10,104 - - -
Directors' fees and allowances - 74,956 - - - -
Charge for defined contribution plans - - 22,188 - - 391,028
Charge for defined benefit plans - - - - - 555,340
Provision - - - - - 215,453
Other expenses - - 15,162 - - 113,720
Clearing charges - - - - - 128,241
Membership, subscription, sponsorship and - - - - -
maintenance charges
Custody charges - - 2,873 - - 26,723
Other Information
Dividend paid 34,745,089 1,004,941 13,194 - 64,941 2,619,101
Insurance premium paid - - - - 647,440 -
Insurance claims settled - - - - 453,070 -
2024 2023
39. CAPITAL ADEQUACY, LEVERAGE RATIO & LIQUIDITY REQUIREMENTS ------- (Rupees in '000) -------
Minimum Capital Requirement (MCR):

Paid-up capital (net of losses) 12,241,797 12,241,797
Capital Adequacy Ratio (CAR):

Eligible Common Equity Tier 1 (CET 1) Capital 163,577,731 143,456,256
Eligible Additional Tier 1 (ADT 1) Capital 9,934,770 9,934,770
Total Eligible Tier 1 Capital 173,512,501 153,391,026
Eligible Tier 2 Capital 55,656,050 49,594,306
Total Eligible Capital (Tier 1 + Tier 2) 229,168,551 202,985,332
Risk Weighted Assets (RWAs):
Credit Risk 734,534,434 709,252,566
Market Risk 212,641,657 259,291,125
Operational Risk 252,952,334 252,952,334
Total 1,200,128,425 1,221,496,025
Common Equity Tier 1 Capital Adequacy Ratio 13.63% 11.74%
Tier 1 Capital Adequacy Ratio 14.46% 12.56%
Total Capital Adequacy Ratio 19.10% 16.62%
The SBP through its BSD Circular No. 07 dated April 15, 2009 has prescribed the minimum paid-up capital (net of
accumulated losses) for Banks to be raised to Rs.10,000 million by the year ending December 31, 2015. The paid-up capital
of the Bank for the period ended September 30, 2024 stood at Rs.12,241.797 million (December 31, 2023: Rs.12,241.797
million) and is in compliance with SBP requirements. Banks are also required to maintain a minimum Capital Adequacy
Ratio (CAR) of 10.0% plus capital conservation buffer of 2.5% of the risk weighted exposures of the Bank.
In order to dampen the effects of COVID-19, the State Bank of Pakistan under BPRD Circular Letter No. 12 of 2020 has
given a regulatory relief and reduced the Capital Conservation Buffer (CCB) as prescribed vide BPRD Circular No. 6 of
August 15, 2013, for the time being, from its existing level of 2.5% to 1.5%, till further instructions.
Further, under Basel III instructions, Banks are also required to maintain a Common Equity Tier 1 (CET 1) ratio and Tier 1
ratio of 6.0% and 7.5%, respectively, as at September 30, 2024. The Bank is fully compliant with prescribed ratios as the
Bank’s CAR is 19.10% whereas CET 1 and Tier 1 ratios stood at 13.63% and 14.46% respectively.
Furthermore, under the SBP’s Framework for Domestic Systemically Important Banks (D-SIBs) introduced vide BPRD
Circular No. 04 of 2018 dated April 13, 2018, UBL has been designated as a D-SIB under letter BSD-
3/Bank/UBL/751777/2024 dated August 29, 2024. In line with this framework, the Bank is required to meet the Higher Loss
Absorbency (HLA) capital charge of 1.0%, in the form of Additional CET 1 capital, on a standalone as well as consolidated
level. The prescribed HLA under D-SIB shall remain effective till the next D-SIB designation announcement is made by
State Bank of Pakistan.
The Capital Adequacy Ratio excluding the transition benefit of ECL (net off tax) on adoption of IFRS 9 would be lower by
42bps as at September 30, 2024.
2024 2023
------- (Rupees in '000) -------
Leverage Ratio (LR):
Eligible Tier-1 Capital 173,512,501 153,391,026
Total Exposures 8,222,734,798 6,245,545,091
Leverage Ratio 2.11% 2.46%
Liquidity Coverage Ratio (LCR):

Total High Quality Liquid Assets 2,362,801,485 1,194,192,309
Total Net Cash Outflow 847,648,795 436,543,979
Liquidity Coverage Ratio 278.75% 273.56%
Net Stable Funding Ratio (NSFR):

Total Available Stable Funding 2,221,791,892 1,912,608,898
Total Required Stable Funding 1,315,541,306 1,310,982,494
Net Stable Funding Ratio 168.89% 145.89%
39.1 The SBP has allowed relaxation in Leverage Ratio requirement from 3% to 2% up to December 31, 2024 through its letter
SBPHOK-BPRD-BACPD-UBL-601894 dated December 21, 2023.
40. ISLAMIC BANKING BUSINESS

The Bank operates 241 (December 31, 2023: 209) Islamic Banking branches and 501 (December 31, 2023: 501)
Islamic Banking windows.
STATEMENT OF FINANCIAL POSITION September 30, December 31,
Note 2024 2023
--------- (Rupees in '000) ---------
ASSETS
Cash and balances with treasury banks 29,511,257 26,348,889
Balances with other banks 1,454,840 1,537,675
Due from financial institutions 40.1 - 12,500,000
Investments 40.2 354,485,515 331,496,374
Islamic financing and related assets - net 40.3 56,646,051 47,187,185
Property and equipment 2,639,022 1,235,419
Right-of-use assets 1,955,744 1,524,770
Intangible assets - -
Due from Head Office - 8,009,487
Other assets 16,240,913 8,629,655
462,933,342 438,469,454
LIABILITIES
Bills payable 3,300,556 2,573,006
Due to financial institutions 35,799,843 13,726,453
Deposits and other accounts 40.4 324,875,220 378,100,209
Due to Head Office 16,611,287 -
Lease Liability 2,235,850 1,754,938
Other liabilities 4,670,128 5,647,031
387,492,884 401,801,637
NET ASSETS 75,440,458 36,667,817
REPRESENTED BY
Islamic Banking Fund 2,181,000 2,181,000
Reserves - -
Surplus on revaluation of assets 18,445,616 3,087,953
Unappropriated profit 40.5 54,813,842 31,398,864
75,440,458 36,667,817
CONTINGENCIES AND COMMITMENTS 40.6
(Un-audited)
PROFIT AND LOSS ACCOUNT January - January -
September September
2024 2023
--------- (Rupees in '000) ---------
Profit / return earned 40.7 51,610,570 31,903,134
Profit / return expensed 40.8 24,226,966 17,359,948
Net profit / return 27,383,604 14,543,186
Other income
Fee and commission income 356,372 257,386
Foreign exchange income 86,444 118,118
Gain on securities - net 1,434,053 -
Other income 60,341 62,570
Total other income 1,937,210 438,074
Total Income 29,320,814 14,981,260
Other expenses
Other operating expenses 4,291,786 2,630,508
Profit before credit loss allowance 25,029,028 12,350,752
Credit loss allowance and write offs - net 43,904 (1,966)
Profit before taxation 24,985,124 12,352,718
Taxation 12,242,711 6,052,832
Profit after taxation 12,742,413 6,299,886
40.1 Due from Financial Institutions

As at September 30, 2024 (Un-audited) As at December 31, 2023 (Audited)
In Local In Foreign In Local In Foreign
Total Total
Currency Currencies Currency Currencies
--------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------
Musharakah / Mudarabah - - - 12,500,000 - 12,500,000

Bai Muajjal
with other Financial Institutions - - - - - -
with State Bank of Pakistan - - - - - -
- - - 12,500,000 - 12,500,000
40.2 Investments by segments

Note Cost /
Credit loss Surplus /
Amortised Carrying Value
allowance (Deficit)
cost
--------------------------- (Rupees in '000) -----------------------------------
Debt Instruments
Measured at amortised cost
Federal Government Securities
- Ijarah Sukuks 10,001,263 - - 10,001,263
- Bai Muajjal with Govt. of Pakistan 40.2.1 45,505,664 - - 45,505,664
Non Government debt securities 9,368,289 (118) - 9,368,171
64,875,216 (118) - 64,875,098
Measured at FVOCI
- Ijarah Sukuks 267,914,098 - 18,445,616 286,359,714
- Islamic Naya Pakistan Certificate 2,936,321 - - 2,936,321
Non Government debt securities 21,429 (7,047) - 14,382
270,871,848 (7,047) 18,445,616 289,310,417
Instruments mandatorily classified / measured at FVPTL
Non Government debt securities 300,000 - - 300,000
300,000 - - 300,000
Total investments 336,047,064 (7,165) 18,445,616 354,485,515

Cost /
Surplus / Carrying
Amortised Provision
(Deficit) Value
cost
--------------------------- (Rupees in '000) -----------------------------------
Federal Government Securities
- Ijarah Sukuks 313,038,816 - 3,087,953 316,126,769
- Islamic Naya Pakistan Certificate 5,709,016 - - 5,709,016
318,747,832 - 3,087,953 321,835,785
Non Government Debt Securities

- Listed 376,339 - - 376,339
- Unlisted 9,284,250 - - 9,284,250
9,660,589 - - 9,660,589
328,408,421 - 3,087,953 331,496,374
Particulars of credit loss allowance As at September 30, 2024 (Un-audited)

Stage 1 Stage 2 Stage 3 Total
--------------------------- (Rupees in '000) -----------------------------------
Federal Government securities - - - -
Non Government debt securities 7,165 - - 7,165
7,165 - - 7,165
(Un-audited)
September 30,
2024
(Rupees in '000)
40.2.1 Bai Muajjal with Government of Pakistan
Bai Muajjal Investment 69,340,000

Less:Deferred Income (23,834,336)
Bai Muajjal Investment-net 45,505,664
40.3 Islamic financing and related assets

Ijarah 154,459
Murabaha 292,075
Musharakah 1,919,277
Diminishing Musharakah 35,871,847
Mera Pakistan Mera Ghar (MPMG) 4,935,975
Istisna 456,325
Diminishing Musharakah - Under SBP's Islamic Temporary Economic Refinance Facility 281,250
Ameen Musharakah Running Finance Under SBP's - Islamic Export Refinance scheme 3,460,000
Islamic Export Refinance scheme - Istisna 586,004
Advances against Islamic assets
Advances against Ijarah 49,012
Advances for Diminishing Musharakah 5,270,603
Advances for Murabaha -
Advances agaisnt Mera Pakistan Mera Ghar 4,336
Advances for Istisna 406,036
Advances against Istisna - Under SBP' Islamic Export Refinance scheme 36,800
Advances against Diminishing Musharakah ITERF 3,705,624
Inventory related to Islamic financing -
Istisna 189,925
Profit and other receivables against financings 1,077,671
Gross Islamic financing and related assets 58,697,219
Less: Credit Loss Allowance against Islamic financings
- Stage 1 (1,809,436)
- Stage 2 (103,074)
- Stage 3 (138,658)
(2,051,168)
Islamic financing and related assets - net of expected credit loss allowance 56,646,051
(Audited)
December 31, 2023
(Rupees in '000)
Islamic financing and related assets
Ijarah 210,375
Murabaha 326,733
Musharakah 3,672,838
Diminishing Musharakah 26,340,035
Mera Pakistan Mera Ghar (MPMG) 5,159,709
Istisna 349,612
Diminishing Musharakah - Under SBP's Islamic Temporary Economic Refinance Facility 300,000
Ameen Musharakah Running Finance Under SBP's - Islamic Export Refinance scheme 3,649,999
Islamic Export Refinance scheme - Istisna 603,250
Advances against Islamic assets
Advances against Ijarah 8,612
Advances for Diminishing Musharakah 1,646,484
Advances for Murabaha 56,537
Advances agaisnt Mera Pakistan Mera Ghar 14,236
Advances for Istisna 414,006
Advances against Istisna - Under SBP' Islamic Export Refinance scheme 50,000
Advances against Diminishing Musharakah ITERF 3,705,624
Inventory related to Islamic financing
Istisna 156,060
Profit and other receivables against financings 749,917
Gross Islamic financing and related assets 47,414,027
Less: Provision against Islamic financings
- Specific (143,029)
- General (83,813)
(226,842)
Islamic financing and related assets - net of provision 47,187,185
40.4 Deposits and other accounts (Un-audited) (Audited)
2024 2023
------------------------------------- (Rupees in '000) -------------------------------------
Customers
Current deposits 201,021,236 147,393,373
Saving deposits 69,291,632 67,293,259
Term deposits 10,179,541 24,888,049
280,492,409 239,574,681
Financial Institutions
Current deposits 745,224 603,101
Saving deposits 43,604,587 137,892,427
Term deposits 33,000 30,000
44,382,811 138,525,528
324,875,220 378,100,209
40.4.1 Deposits eligible to be covered under insurance arrangements in accordance with DPC Circular No. 04 dated June 22, 2018
amounting to Rs. 234,396.712 million (December 31, 2023: Rs. 182,080.598 million).
40.5 Islamic Banking Business Unappropriated Profit 2024 2023
------------------------------------- (Rupees in '000) -------------------------------------
Opening Balance 31,398,864 15,024,771
Impact of adoption of IFRS 9 (1,570,146) -
Profit for the period / year 24,985,124 16,374,093
54,813,842 31,398,864
Taxation (12,242,711) (8,023,306)
Closing Balance 42,571,131 23,375,558
40.6 Contingencies and commitments

- Guarantees 114,212 228,481
- Commitments 4,708,490 6,413,657
4,822,702 6,642,138
(Un-audited)
January - January -
September 2024 September 2023
40.7 Profit / Return earned ------------------------------------- (Rupees in '000) -------------------------------------
On:
Financing 6,058,637 8,775,401
Investments 45,261,627 22,672,628
Placements 191,981 287,267
Rental Income from Ijarah 98,325 167,838
51,610,570 31,903,134
40.8 Profit / Return expensed
On:
Deposits and other accounts 20,094,302 11,972,125
Due to Financial Institutions 3,930,625 5,280,120
Others 202,039 107,703
24,226,966 17,359,948
40.9 Disclosures for profit and loss distribution and pool management
The Bank operates general and special pools for deposits and inter-bank funds accepted / acquired under Mudarabah, Wakalah
and Musharakah modes.
Under the General deposits pools, the Bank accepts funds on Mudarabah basis from depositors (Rab-ul-Maal) where the Bank
acts as Manager (Mudarib) and invests the funds in the Shariah Compliant modes of financing, investments and placements.
When utilising investing funds, the Bank prioritizes the funds received from depositors over the funds generated from own
sources after meeting the regulatory requirement relating to such deposits.
Specific pools are operated for funds acquired / accepted from the Corporate Customers, other banks and State Bank of
Pakistan for liquidity management and Islamic Export Refinance to the Bank's customers respectively under the Musharakah/
Mudarabah / Wakalah modes.
General Pool(s)
For General Pools , the Bank allocates PKR financing to Corporate, SME and Consumer Finance customers in diversified
sectors and avenues of the economy / business and Investments in Sovereign Guarantee Sukuk, Corporate Sukuk, Bai
Muajjal with Government of Pakistan, are also done through General Pools. All remunerative deposits are tagged to these
general pools and their funds generated from the depositors are invested on priority basis.
IERS Pool(s)
The IERS pool assets comprise of Sovereign Guarantee Sukuk, and financing to Corporate Customers and exporters as
allowed under the applicable laws and regulations, and as such are exposed to lower credit risk. The Musharakah with SBP
under IERS is tagged to the IERS pool.
Treasury Pool(s)
The Treasury pool assets generally comprise of Sovereign Guarantee Sukuk and financing under diminishing musharakah,
Ijarah facility and the related liability of the Treasury pool comprise of Musharakah / Wakalah/ Mudarabah from financial
institutions. These pools are created to meet the liquidity requirements of the Holding company.
Special Pool(s) - LCY

Separate pool(s) are created where the customers desire to invest in high yield assets. These pool(s) rates are higher than
the general pool depending on the assets. In case of loss in special pool, the loss will be borne by the special pool members.
The net return on the pool is arrived at after deduction of direct costs from the gross return earned on the pool. From the net
return, profit is paid to the Mudarib in the ratio of the Mudarib’s equity in the pool to the total pool. The balance represents the
distributable profit.
Special Pool(s) - FCY

UBL also manage Forigen Currency (FCY) special pools. The objective of Pool is to meet the FCY Liquidity requirement. The
funds in this pool are generally deployed in FCY Placment of funds with State Bank under the mode of Islamic Naya Pakistan
Certificate, Loss (if any) is borne by the Rabulmaal as per ratio of investment of the pool.
Equity Pool(s)
All other assets including fixed assets, advance against financing, bai-salam financing and subsidized financing to Bank's
employees are tagged to equity pool. To safeguard the interest of customers, all high risk investments are done through
equity pool. The Holding company as Mudarib in the general pools is responsible for financing costs / assets such as land,
building, furniture, fixtures, computers and IT system from its own sources / equity..
During the year, the Bank has given General Hiba to the depositors in General and specific pool, keeping in view the
prescribed guidelines of Pool Management provided by the SBP. However, Hiba are given at the sole discretion of the Bank
without any contractual commitment with the depositors.
The Mudarib’s share on Deposits for the period ended Sep 30, 2024 is Rs.7,058.03 million (27.95% of distributable profit of
Mudarabah Pool) of this, an amount of Rs.2,025 million (28.69% of Mudarib share) was distributed back to depositors as
Hiba. The rate of profit earned on average earning assets was 20.61% per annum and the rate of profit paid on average
deposits was 16.50% per annum.
The risk characteristics of pools

The risk characteristic of each pool mainly depends on the assets and liability profile of the pool. As per the Bank 's policy,
relatively low risk / secured financing transactions and assets are allocated to the pool. The Bank maintains General Pools,
Special Pools, FI Pools, IERS pool and Equity pool. All pools are exposed to general credit risk, asset ownership risk and
Profit rate risk of underlying assets involved.
The Parameters used for allocation of profit, expenses and provisions to the Pool
- The profit of each deposit pool is calculated on all The remunerative assets booked by utilising The funds from the pool.
- Profit of pool is calculated after deduction of expenses directly incurred in earning the income of such pool, the directly
related costs comprise of depreciation on ijarah assets, takaful premium, Amortization of Premium on investment etc.
- No expense of general or administrative nature is charged to the pools.
- No provisions against any non-performing asset of the pool is passed on to the pool except on the actual loss / write-off of
such non-performing asset.
- The profit of the pool is shared between equity and Rab-ul-Maal of the pool on the basis of Musharakah at gross level
(before charging of mudarib fee) as per the investment ratio of the equity.
- The profit of the pool is shared among the members of the pool on pre-defined mechanism based on the weightages
announced before the profit calculation period after charging of mudarib fee.
The Bank managed following pools during the period.
Profit rate
Mudarib fee / Average Percentage of
and Average Profit Amount of Mudarib
No of Nature of Musharakah profit rate / Mudarib share
weightages profit rate Sharing share transferred
Pools Pool share / return transferred through
announce- earned ratio through Hiba
Wakalah Fee distributed Hiba
ment period
% % Rupees in '000 % % Rupees in '000

ADMA Pools 9 Mudarbaha Monthly 12.16% 38.80% 151,622 8.20% 15.31% 23,207
Special Pools 104 Mudarbaha Monthly 20.66% 13.45% 2,032,150 19.06% 42.71% 868,028
IERS Pools 18 Musharkah Monthly 17.78% 59.36% 735,665 17.78% 0.00% -
FCY Pools 12 Mudarbaha Monthly 2.13% 50.00% 4,594 1.06% 0.00% -
General Pools 9 Mudarbaha Monthly 20.58% 49.99% 4,874,260 12.59% 23.27% 1,134,037
Treasury Pools 219 Musharkah Monthly 18.94% 11.16% 420,971 17.85% 0.00% -
Profit rate
Mudarib fee / Average Percentage of
and Average Profit Amount of Mudarib
No of Nature of Musharakah profit rate / Mudarib share
weightages profit rate Sharing share transferred
Pools Pool share / return transferred through
announce- earned ratio through Hiba
Wakalah Fee distributed Hiba
ment period
% % Rupees in '000 % % Rupees in '000

ADMA Pools 9 Mudarbaha Monthly 12.26% 35.00% 269,067 8.62% 15.32% 41,219
Special Pools 105 Mudarbaha Monthly 19.37% 21.34% 697,371 16.82% 47.37% 330,353
IERS Pools 18 Musharkah Monthly 16.34% 71.96% 1,441,505 13.95% 0.00% -
FCY Pools 12 Mudarbaha Monthly 2.13% 50.00% 8,054 1.06% 0.00% -
General Pools 9 Mudarbaha Monthly 19.69% 50.00% 6,265,396 15.18% 54.18% 3,394,567
Treasury Pools 5 Mudarbaha Monthly 18.67% 6.27% 21,442 17.71% 5.35% 1,148
Treasury Pools 2 Wakala Monthly 21.30% 3.57% 725 21.00% 0.00% -
Treasury Pools 305 Musharkah Monthly 19.36% 12.28% 595,646 19.03% 0.00% -
2024 2023
-------Rupees in '000-----
40.10 Deployment of Mudarabah based deposits by class of business
Chemical and pharmaceuticals 5,953,014 5,934,303

Agriculture - 12,974
Textile 3,379,680 5,931,200
Financial 800,403 13,291,379
Food industries - 52,926
Plastic 299,734 291,051
Individuals 20,209,414 15,287,661
Production and transmission of energy 19,915,720 19,682,190
Government of Pakistan Securities 344,795,796 321,835,785
Others 17,828,973 9,090,933
413,182,734 391,410,402
41. YEMEN OPERATIONS
Despite risky situation and continued operational losses the Bank has been striving to honor liabilities. However, on account
of several factors, including but not limited to fragile political and economic situation in Yemen, bankruptcy of CBY Sana’a,
existence of two Central Banks (i.e. CBY Sana’a and CBY Aden), has resulted in illiquid market, which does not appears to
be reversed in near future.
It is no longer possible for the Bank to continue its operations in Yemen due to reasons not attributable to the Bank and
caused by circumstances entirely beyond the Bank’s control. Therefore, Bank has completely exited from Yemen. The Bank
is cognizant of the associated risks arising out of its exit from Yemen.
42. NON-ADJUSTING EVENT AFTER THE BALANCE SHEET DATE
The Board of Directors in its meeting held on October 23, 2024 has declared an interim cash dividend in respect of quarter ended
September 30, 2024 of Rs. 11.0 per share (September 30, 2023: Rs. 11.0 per share). This is in addition to Rs. 22.0 already paid during
the period bringing the total dividend for the nine months to Rs.33.0 per share (September 30, 2023: Rs. 33.0). These unconsolidated
condensed interim financial statements for the nine months ended September 30, 2024 do not include the effect of these appropriations
which will be accounted for subsequent to the period end.
43. GENERAL
43.1 Comparative information has been reclassified, rearranged or additionally incorporated in these unconsolidated condensed interim
financial statements for the purposes of better presentation.
43.2 The Bank has not restated comparative information for 2023 for financial instruments in the scope of IFRS 9. Therefore, the comparative
information for 2023 is reported under previous local regulatory requirements and is not comparable with the information presented for
2024.
43.3 Figures have been rounded off to the nearest thousand rupees unless otherwise stated.
44. DATE OF AUTHORISATION
These unconsolidated condensed interim financial statements were authorised for issue on October 23, 2024, by the Board of Directors
of the Bank.

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UBL Unconsolidated Financial Statements Sept 2024

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United Bank Limited

Capital Ratios - Consolidated

Advances to Deposits Ratio

Muhammad Jawaid Iqbal Daniel Michael Howlett

Note (Un-audited) (Audited)

NET ASSETS 312,730,978 252,500,531

CONTINGENCIES AND COMMITMENTS 24

Mark-up / return / interest earned 26 310,741,852 147,350,437 825,895,798 337,213,439

Non mark-up / interest income

Non mark-up / interest expenses

Profit before credit loss allowance 50,990,038 27,466,313 106,312,952 81,005,129

Profit before taxation 50,096,509 28,472,478 107,786,188 79,050,656

Taxation 34 24,556,195 13,926,053 52,800,301 38,185,072

Profit after taxation 25,540,314 14,546,425 54,985,887 40,865,584

------------------------------------ (Rupees) ---------------------------------------

Other comprehensive income

Items that may be reclassified to profit and loss account

Items that will not be reclassified to profit and loss account

Movement in surplus on revaluation of equity investments through FVOCI -

Surplus / (Deficit) on revaluation

Interim cash dividend - September 30, 2023

Effect of adoption of IFRS 9 - ECL (net of tax) - - - - - - (4,598,302) (4,598,302)

-------------- (Rupees in '000) --------------

CASH FLOW FROM INVESTING ACTIVITIES

CASH FLOW FROM FINANCING ACTIVITIES

Payment of lease liability against right-of-use assets (2,693,923) (2,422,031)

Increase / (decrease) in cash and cash equivalents 78,515,446 153,710,479

1. STATUS AND NATURE OF BUSINESS

2.1 STATEMENT OF COMPLIANCE

3. MATERIAL ACCOUNTING POLICIES

3.1 Changes in reporting format

3.2 IFRS 9 - Financial Instruments

3.2.1 Scope of IFRS 9 application

3.2.2.1 Classification of financial assets

3.2.2.2 Impairment of debt investments and loans and advances

3.2.2.3 Impairment of equity investments

3.2.3.1 Financial assets – initial recognition

3.2.3.2 Classification and subsequent measurement of financial assets

3.2.3.3 Financial assets at amortised cost

The details of these conditions are outlined below:

b) The SPPI test

3.2.3.4 Debt instruments at FVOCI

3.2.3.5 Equity instruments at FVOCI

3.2.3.6 Financial assets and financial liabilities at FVPL

3.2.3.7 Financial liabilities at amortised cost

3.2.3.8 Derecognition of financial assets

3.2.3.8.1 Derecognition due to substantial modification of terms and conditions

3.2.3.9 Derecognition of financial liabilities

3.2.3.10 Impairment of financial assets

3.2.3.10.1 Overview of the ECL principles

3.2.3.10.2 The calculation of ECLs

The key elements of ECL calculations are as follows:

3.2.3.10.3 Forward looking information

3.2.4 Transition disclosures

Classification under IFRS 9

Cash and cash equivalents 308,030,968 - - - 308,030,968 (1,182) 308,029,786

Investments in financial assets

Other assets 150,395,306 4,266,717 - - 146,128,589 - 150,395,306

Borrowings 2,815,470,554 - - - 2,815,470,554 - 2,815,470,554