STATEMENT OF

FINANCIAL POSITION
2023 2022 2021 2020 2019 2018
Rupees in million

ASSETS
Cash and balances with treasury banks 100,894 73,203 71,319 69,272 53,415 43,589
Balances with other banks 8,283 4,814 8,718 2,398 10,311 5,802
Lendings to financial institutions 144,961 69,819 30,980 16,087 4,060 27,843
Investments - net 913,191 638,259 531,683 567,789 361,453 210,071
Advances - net 806,387 589,581 484,405 391,161 383,313 381,877
Fixed assets 33,213 30,339 19,832 14,813 15,219 8,788
Intangible assets 2,091 1,768 1,101 689 793 891
Deferred tax assets - net 10,243 14,555 13,696 7,774 6,568 7,965
Other assets - net 196,916 59,551 35,218 25,465 33,797 27,552
2,216,180 1,481,890 1,196,952 1,095,446 868,928 714,380
LIABILITIES
Bills payable 5,508 6,324 10,109 4,169 3,421 3,578
Borrowings 453,966 80,820 71,323 154,841 77,045 41,793
Deposits and other accounts 1,520,854 1,227,339 1,002,955 835,068 691,017 595,582
Subordinated debts 30,205 17,204 7,789 6,792 8,794 8,797
Other liabilities 124,893 85,151 49,943 42,315 41,968 26,909
2,135,425 1,416,838 1,142,119 1,043,185 822,245 676,659
NET ASSETS 80,755 65,052 54,833 52,262 46,682 37,720

REPRESENTED BY
Share capital - net 32,453 29,478 26,174 26,174 26,174 26,174
Reserves 14,952 12,684 10,517 8,029 6,640 4,991
Surplus/(Deficit) on revaluation of assets - net of tax 1,829 (2,323) (1,369) 5,955 5,371 3,260
Unappropriated profit 31,522 25,213 19,511 12,103 8,497 3,296
80,755 65,052 54,833 52,262 46,682 37,720

TS - CAGR 22% SIX YEAR ADVANCES & DEPOSIT

1,600,000 1,520,854 80
71%
1,400,000 70
1,227,339 62%

1,200,000 56% 53% 60

52% 1,002,955

1,000,000 53% 50
849,510
835,068
80,0000 691,017 40
634,376
595,582
534,163
600,000 30
442,760 428,846 425,756
400,000 20

200,000 10

0 0
2023 2022 2021 2020 2019 2018
Gross Advances (Rs.in M) Deposits (Rs. In M) Gross Advances to Deposits Ratio %

TS - CAGR 22% ADVANCES CONCENTRATION LEVEL IN ASSETS

60
53%

50
44%
40% 40%
40 36% 36%

30

20

10

0
2023 2022 2021 2020 2019 2018

82 Annual Report 2023

 STATEMENT OF PROFIT & LOSS

2023 2022 2021 2020 2019 2018

Rupees in million

Mark-up / return / interest earned 327,194 137,168 81,651 86,019 80,867 46,893
Mark-up / return / interest expensed 286,248 106,410 51,775 62,694 54,110 26,840
Net mark-up / interest income 40,946 30,758 29,876 23,325 26,757 20,053

NON MARK-UP / INTEREST INCOME

Fee and commission income 7,429 7,332 5,103 3,732 3,530 3,245
Dividend income 568 708 377 137 104 82
Foreign exchange income 298 1,887 577 328 11 227
Gain on securities - net 5,255 343 1,786 8,466 222 28
Other income - net 4,168 306 61 382 73 92
Total non-markup / interest income 17,718 10,576 7,904 13,046 3,940 3,673
Total income 58,663 41,335 37,780 36,371 30,696 23,726

NON MARK-UP / INTEREST EXPENSES

Operating expenses 37,120 27,374 20,637 16,880 14,453 12,613
Workers welfare fund 324 289 363 335 285 –
Other charges 55 43 13 304 139 54
Total non-markup / interest expenses 37,498 27,705 21,014 17,519 14,876 12,666
Profit before provisions 21,165 13,630 16,766 18,852 15,820 11,060

Provisions and write offs - net (53) (4,878) (1,642) 6,862 1,776 (1,148)
PROFIT BEFORE TAXATION 21,218 18,508 18,408 11,989 14,044 12,208
Taxation - net 9,879 7,673 5,968 5,046 5,795 4,645

PROFIT AFTER TAXATION 11,339 10,834 12,440 6,944 8,249 7,564

Basic earnings per share 3.47 3.31 4.18 2.63 3.12 2.86
Diluted earning per share 3.47 3.31 4.18 2.63 3.12 2.86

L ASSETS - CAGR 22% SIX YEAR PROFIT ANALYSIS

25,000 1.10% 1.2
1.09%
1.04%
21,218
1.0
20,000 18,508 18,408

0.81% 0.71% 0.8

15,000 14,044
0.61%
12,440 11,989 12,208
11,339 10,834 0.6

10,000 8,249
6,944 7,564
0.4

5,000
0.2

0 0.0
2023 2022 2021 2020 2019 2018
Profit before tax Profit after tax Return on Assets

8 80
67.03%
63.92%

70
7
55.62%

6.49%
53.38%

6.19%
48.46%

60
48.17%

5.66%
42.76%

6
5.31% 50
36.59%

33.09%

5 4.54% 4.62% 40
27.12%

26.03%

4.18%
22.42%

22.54%
21.04%

30
17.37%

4 3.47%
13.94%
12.51%

13.49%

11.90%

3.31%
11.76%

11.00%

3.12% 20
8.27%

7.97%

2.86%
6.48%

3 2.63%
10

2 0
2023 2022 2021 2020 2019 2018 2023 2022 2021 2020 2019 2018
Earnings per share (before tax) Earnings per share (after tax) Profit before tax ratio Gross Spread
come(after provision) to total assets Cost to income ratio Gross Yield on Avg. Earning Assets

BOUND BY
COLLABORATIVE
SPIRIT 83
 ANALYSIS OF THE FINANCIAL
PERFORMANCE
TOTAL ASSETS - CAGR 22% DEPOSITS - CAGR 18%
2,500 1,600 1,521
2,216
1,400
2,000 1,227
1,200
1,482 1,003
1,000
1,500
835
1,197
1,095 800 691
869 596
1,000
600
714
400
500
200

0 0
2023 2022 2021 2020 2019 2018 2023 2022 2021 2020 2019 2018

GROSS ADVANCES - CAGR 16% INVESTMENTS - NET - CAGR 25%

900 850 1,000
913
800 900

700 800
634
700 638
600
534
600 568
532
500 443 429 426 500
400
400 361
300
300
210
200 200
100 100

0 0
2023 2022 2021 2020 2019 2018 2023 2022 2021 2020 2019 2018

NET INTEREST MARGIN - CAGR 17% NON MARKUP INCOME - CAGR 25%
45 20.00
40.95 17.72
40 18.00

35 16.00
30.76
29.88 14.00 13.05
30
26.76
12.00 10.58
25 23.33
20.05 10.00
20 7.90
8.00
15
6.00
3.94 3.67
10 4.00
5 2.00

0 0
2023 2022 2021 2020 2019 2018 2023 2022 2021 2020 2019 2018

PROFIT BEFORE TAX - CAGR* 12% PROFIT AFTER TAX - CAGR* 8%

25 14
12.44
21.22
12 11.34
20 10.83
18.51 18.41
10

14.04 8.25
15 7.56
8
11.99 12.21 6.94

6
10

4
5
2

0 0
2023 2022 2021 2020 2019 2018 2023 2022 2021 2020 2019 2018

* Calculated on the basis of year 2018

84 Annual Report 2023

SIX YEARS PERFORMANCE
REVIEW
Statement of Financial NPLs
Position The Bank has been making all out efforts for recovery of its
legacy NPLs portfolio and significant recovery has been
made in this regard. In this regard, matter has been taken
Total Assets up at different legal forums for recovery/regularization
As of December 31, 2023, Bank’s Total Assets crossed Rs. of NPLs. As on December 31, 2023, NPLs % reduced to
2.0 Trillion mark and stood at Rs. 2,216 Billion as against 6% as against 12% as of December 31, 2018. Despite
Rs. 714 Billion as of December 31, 2018 registering a significant growth in Advances portfolio, the Bank has
CAGR of 22%. This increase in Bank’s assets is mainly been successful in avoiding any major addition in NPLs
due to significant growth in Deposits & Borrowing and despite very challenging operating/economic conditions.
resultant growth in Advances and Investments . In Further, the Bank is fully compliant with provisioning
order to enhance its footprints in different regions of the requirements under Prudential Regulations of SBP.
country to increase share of wallet, the Bank continued
NON PERFORMING LOANS
to expand its Branch Network over last six years. During
70,000 98
the year 2023, 35 new Branches were opened and the 95.63%
96
Branch Network now stands at 815 Branches as against 60,000
52,032
57,251
94
50,880 51,561 51,599 51,363
576 Branches as of December 31, 2018. 50,000
44,795
49,758
45,533
49,385
92
43,123 43,879
90
TOTAL ASSETS - CAGR 22% 40,000 90.13%
88.65% 88.85% 88
2,500 30,000
2,216 86.88% 86

20,000 84.75% 84
2,000
82
10,000
1,482 80
1,500
1,197 0 78
1,095 2023 2022 2021 2020 2019 2018
869
1,000 NPLs (Rs. In M) Provisions (Rs. In M) Coverage Ratio % (Total Provision/NPLs)
714

500
Net Investments
Bank’s Investments have registered significant growth
0
2023 2022 2021 2020 2019 2018 over the years. In line with Bank’s strategy to improve
the risk profile of assets, major concentration of Bank’s
Gross Advances Investments has been maintained in Government
As of December 31, 2023, the Goss Advances touched Securities. As of December 31, 2023, Bank’s net
the level of Rs. 850 Billion as against Rs. 426 Billion as Investments stood at Rs. 913 Billion as against Rs. 210
of December 31, 2018 with a CAGR of 16%. Apart from Billion as of December 31, 2018 registering a CAGR of
growth in Corporate/Commercial portfolio, the Bank 25%.
focused on SME, Agriculture, Consumer and Retail INVESTMENTS - NET - CAGR 25%
Finance. In this regard, new products were introduced, 1,000
913
tailored to the specific needs of different segments of 900

customers. The Lending portfolio under Taqwa Islamic 800

700
Banking has also witnessed significant growth over the 638
600 568
years. The Gross Advances to Deposits ratio stood at 532
500
56% as against 71% as of December 31, 2018. 361
400

300
210
200
900 850
100
800
0
700 2023 2022 2021 2020 2019 2018
634
600
534
500 443 429 426
400

300

200

100

0
2023 2022 2021 2020 2019 2018

BOUND BY
COLLABORATIVE
SPIRIT 85
 SIX YEARS PERFORMANCE
REVIEW
Deposits by Bank’s Treasury, significant surplus on investments
In order to enhance its presence in untapped areas and were accrued on the Books. Accordingly, the Bank was
improve business volumes, the Bank has continuously able to realize significant capital gains during last 6
focused on expanding its Branch Network and, years. The Dividend and Capital Gains during year 2023
accordingly, 239 new Branches have been opened across stood at Rs. 5.8 Billion as against Rs. 0.1 Billion during
the country during last 6 years. Further, Bank’s product year 2018.
lines have been revamped in line with customers’ needs
SIX YEAR - NON MARKUP INCOME
while improving upon service quality and efficiency. The
14,000
Bank has especially focused on introducing new Digital
11,895
Banking Products like Internet Banking, Mobile Banking 12,000

etc. As of December 31, 2023 Deposits stood at Rs. 1,521 10,000 9,525
8,603
Billion as against Rs. 596 Billion as of December 31, 2018
8,000
registering a CAGR of 18%. The Bank is providing 24/7 5,823 5,741
6,000
Banking Services to its valued clients through its various 4,442
3,614 3,564
Digital Banking Products/Services. 4,000
2,162
2,000 1,051
325 109
0
1600000 1,520,854 69 2023 2022 2021 2020 2019 2018
68%
68 Fee, Commission, brokerage & FX income Dividend and capital gains
1400000
1,227,339
Operating Expenses
67
1200000
65% 65% 66
947,454 1,002,955
1000000
794,236
64% 835,068 64%
65
During year 2023, the Operating Expenses stood at
800000 64
643,842
691,017
595,582
Rs. 37.1 Billion as against Rs. 12.6 Billion during year
62% 545,920 63
600000
471,581 2018. During the period, 239 Branches have been
383,859 62
400000
61
opened to expand the Bank’s outreach resulting in rise
200000
60 in Personnel Cost & Property Expenses. The Bank has
0 59 also invested significantly in new technologies including
2023 2022 2021 2020 2019 2018
Deposit CASA CASA Ratio
implementation of new Core Banking System (Flexcube)
and other applications in line with Bank’s growth strategy.
Profit And Loss Account Accordingly, the Information Technology Expenses
stood at Rs. 2.6 Billion for year 2023. The Bank has
Net Interest Margin also implemented austerity measures to keep a check
Bank’s Strategic Business Plan envisages the strategy on its other operating expenses and keep them in line
to focus on growth in Deposits with a improved mix of with inflationary parameters and growth in business
low cost CASA Deposits. Further, the Bank has been volumes.
successful in deploying the funds in different lucrative
avenues of Lending and Investments with generation of PROVISIONS & WRITE OFFS
steady revenue streams. Accordingly, Bank’s NIM has
During year 2023, net provision of Rs. (0.05) Billion has
significantly improved to Rs. 40.95 billion in year 2023
been reversed on account of recovery/regularization
as against Rs. 20.05 billion during year 2018 thereby
of NPAs as against provision reversal of Rs. (4.9)
registering a CAGR of 17%.
billion during year 2022. The Bank is fully compliant
with Provisioning requirements under SBP Prudential
Regulations.
Non Markup Income
In order to improve Non-markup Income, the Bank has
PROFIT BEFORE TAX
been focusing on introducing new products and services
along with deepening of relationship with existing clients Bank has been successful in posting a consistent growth
to procure incremental business. The Fee/FX/Other in Profit Before Tax during 2018-2023. During year 2023,
Income has improved to Rs. 11.9 Billion in year 2023 as despite extremely challenging operating/economic
against Rs. 3.6 Billion during year 2018 with a CAGR of conditions, the Bank earned Profit Before Tax of Rs.
25%. Owing to efficient handling of investments portfolio 21.2 Billion as against Rs. 12.2 Billion during year 2018
registering a CAGR of 12%.

86 Annual Report 2023

 INVESTMENTS SEGMENT WISE
Investment by Category

2023 2022 2021 2020 2019 2018

Rs in million

Investment by Category
MTB 27,203 62,110 125,198 329,511 133,654 197,418.16
PIB 830,084 527,564 379,677 214,789 214,043 250.33
Debt 48,248 37,769 19,936 19,847 12,133 11,233
Shares 7,656 10,816 6,871 3,641 1,623 1,170
Total 913,191 638,259 531,683 567,789 361,453 210,071

Investment at cost
Held for trading securities 44,070 6,431 33,507 19,147 9,962 25,088
Available for sale securities 779,709 553,323 451,369 487,557 291,838 187,982
Held to maturity securities 98,548 96,884 61,300 60,484 59,762 251
Subsidiaries 275 165 165 165 165 165
Total investments 922,602 656,803 546,340 567,353 361,727 213,486

Investment at market value

Held for trading securities 44,125 6,368 33,528 19,148 9,958 25,085
Available for sale securities 770,408 535,007 436,856 488,157 291,733 184,703
Held to maturity securities 98,548 96,884 61,299 60,483 59,762 250
Subsidiaries 110 - - - - 34
Total investments 913,191 638,259 531,683 567,789 361,453 210,071

L ASSETS - CAGR 22% CATEGORY OF INVESTMENTS

1,000,000
830,084

800,000
527,564

600,000
379,677

329,511

400,000
214,789

214,043

197,418
133,654
125,198
62,110

200,000
48,248
27,203

37,769

19,847
19,936

12,133

11,233
10,816
7,656

6,871

3,641

1,170
1,623

250

0
2023 2022 2021 2020 2019 2018
MTB PIB Debt Sharers

L ASSETS - CAGR 22% INVESTMENTS TO TOTAL ASSETS %

60
52%

50
44%
43%
41% 42%
40

29%
30

20

10

0
2023 2022 2021 2020 2019 2018

BOUND BY
COLLABORATIVE
SPIRIT 87
 SIX YEARS’ VERTICAL
ANALYSIS
2023 2022 2021 2020 2019 2018
Rs Mln % Rs Mln % Rs Mln % Rs Mln % Rs Mln % Rs Mln %

Statement of Financial Position

ASSETS
Cash and balances with treasury banks 100,894 5% 73,203 5% 71,319 6% 69,272 6% 53,415 6% 43,589 6%
Balances with other banks 8,283 0% 4,814 0% 8,718 1% 2,398 0% 10,311 1% 5,802 1%
Lendings to financial institutions 144,961 7% 69,819 5% 30,980 3% 16,087 1% 4,060 0% 27,843 4%
Investments - net 913,191 41% 638,259 43% 531,683 44% 567,789 52% 361,453 42% 210,071 29%
Advances - net 806,387 36% 589,581 40% 484,405 40% 391,161 36% 383,313 44% 381,877 53%
Fixed assets 33,213 1% 30,339 2% 19,832 2% 14,813 1% 15,219 2% 8,788 1%
Intangible assets 2,091 0% 1,768 0% 1,101 0% 689 0% 793 0% 891 0%
Deferred tax assets - net 10,243 0% 14,555 1% 13,696 1% 7,774 1% 6,568 1% 7,965 1%
Other assets - net 196,916 9% 59,551 4% 35,218 3% 25,465 2% 33,797 4% 27,552 4%
2,216,180 100% 1,481,890 100% 1,196,952 100% 1,095,446 100% 868,928 100% 714,380 100%
LIABILITIES
Bills payable 5,508 0% 6,324 0% 10,109 1% 4,169 0% 3,421 0% 3,578 1%
Borrowings 453,966 20% 80,820 5% 71,323 6% 154,841 14% 77,045 9% 41,793 6%
Deposits and other accounts 1,520,854 69% 1,227,339 83% 1,002,955 84% 835,068 76% 691,017 80% 595,582 83%
Subordinated debts 30,205 1% 17,204 1% 7,789 1% 6,792 1% 8,794 1% 8,797 1%
Other liabilities 124,893 6% 85,151 6% 49,943 4% 42,315 4% 41,968 5% 26,909 4%
2,135,425 96% 1,416,838 96% 1,142,119 95% 1,043,185 95% 822,245 95% 676,659 95%
NET ASSETS 80,755 4% 65,052 4% 54,833 5% 52,262 5% 46,682 5% 37,720 5%

REPRESENTED BY
Share capital - net 32,453 1% 29,478 2% 26,174 2% 26,174 2% 26,174 3% 26,174 4%
Reserves 14,952 1% 12,684 1% 10,517 1% 8,029 1% 6,640 1% 4,991 1%
Surplus/(Deficit) on revaluation of
assets - net of tax 1,829 0% (2,323) 0% (1,369) 0% 5,955 1% 5,371 1% 3,260 0%
Unappropriated profit 31,522 1% 25,213 2% 19,511 2% 12,103 1% 8,497 1% 3,296 0%
80,755 4% 65,052 4% 54,833 5% 52,262 5% 46,682 5% 37,720 5%
Profit & Loss Account
Mark-up / return / interest earned 327,194 95% 137,168 93% 81,651 91% 86,019 87% 80,867 95% 46,893 93%
Mark-up / return / interest expensed (286,248) -83% (106,410) -72% (51,775) -58% (62,694) -63% (54,110) -64% (26,840) -53%
Net mark-up / interest income 40,946 12% 30,758 21% 29,876 33% 23,325 24% 26,757 32% 20,053 40%
Non mark-up / interest income 17,718 5% 10,576 7% 7,904 9% 13,046 13% 3,940 5% 3,673 7%
Total income 58,663 17% 41,335 28% 37,780 42% 36,371 37% 30,696 36% 23,726 47%
Non mark-up / interest expenses (37,498) -11% (27,705) -19% (21,014) -23% (17,519) -18% (14,876) -18% (12,666) -25%
Profit before provisions 21,165 6% 13,630 9% 16,766 19% 18,852 19% 15,820 19% 11,060 22%
Provisions and write offs - net 53 0% 4,878 3% 1,642 2% (6,862) -7% (1,776) -2% 1,148 2%
Profit before taxation 21,218 6% 18,508 13% 18,408 21% 11,989 12% 14,044 17% 12,208 24%
Taxation - net (9,879) -3% (7,673) -5% (5,968) -7% (5,046) -5% (5,795) -7% (4,645) -9%
Profit after taxation 11,339 3% 10,834 7% 12,440 14% 6,944 7% 8,249 10% 7,564 15%

Investments & Advances remained major components of Asset Mix of the Bank. The Bank opted to channelize incremental funds in
Risk Free Investments and grow Advances Book in a very careful manner. Accordingly, the mix of Advances-net reduced to 36% in
2023 as against 53% in year 2018. The mix of Investments improved to 41% as against 29% in year 2018.
Owing to Branch Expansion and products diversification, the Bank was able to post a steady growth in Deposits with a CAGR of 18%.
As of December 31, 2023, the Mix of Deposits and Borrowings stood at 69% & 20%, respectively.
Markup Income has shown a steady growth with main contribution from income on Advances and Investments. The contribution
of markup income constitutes 95% of the total revenue for year 2023. Markup Expense has also increased due to growth in Deposit
base, change in minimum rate of profit on PLS Deposits and rise in Borrowings/Subordinated Loans. Concentration of Non Markup
Income for year 2023 remained at 5% as against 7% during year 2022. The concentration of Non Markup Expense remained at 11%
& 19% for the years 2023 & 2022, respectively. The rise in Non-Markup Expenses is in line with Branch Expansion, investment in new
technologies and inflationary parameters.

88 Annual Report 2023

SIX YEARS’ HORIZONTAL
ANALYSIS
2023 23 Vs 22 2022 22 Vs 21 2021 21 Vs 20 2020 20 Vs 19 2019 19 Vs 18 2018 18 Vs 17
Rs Mln % Rs Mln % Rs Mln % Rs Mln % Rs Mln % Rs Mln %

Statement of Financial Position

ASSETS
Cash and balances with treasury banks 100,894 38% 73,203 3% 71,319 3% 69,272 30% 53,415 23% 43,589 3%
Balances with other banks 8,283 72% 4,814 -45% 8,718 264% 2,398 -77% 10,311 78% 5,802 -5%
Lendings to financial institutions 144,961 108% 69,819 125% 30,980 93% 16,087 296% 4,060 -85% 27,843 13%
Investments - net 913,191 43% 638,259 20% 531,683 -6% 567,789 57% 361,453 72% 210,071 -13%
Advances - net 806,387 37% 589,581 22% 484,405 24% 391,161 2% 383,313 0% 381,877 29%
Fixed assets 33,213 9% 30,339 53% 19,832 34% 14,813 -3% 15,219 73% 8,788 11%
Intangible assets 2,091 18% 1,768 61% 1,101 60% 689 -13% 793 -11% 891 42%
Deferred tax assets - net 10,243 -30% 14,555 6% 13,696 76% 7,774 18% 6,568 -18% 7,965 -26%
Other assets - net 196,916 231% 59,551 69% 35,218 38% 25,465 -25% 33,797 23% 27,552 2%
2,216,180 50% 1,481,890 24% 1,196,952 9% 1,095,446 26% 868,928 22% 714,380 9%
LIABILITIES
Bills payable 5,508 -13% 6,324 -37% 10,109 143% 4,169 22% 3,421 -4% 3,578 6%
Borrowings 453,966 462% 80,820 13% 71,323 -54% 154,841 101% 77,045 84% 41,793 7%
Deposits and other accounts 1,520,854 24% 1,227,339 22% 1,002,955 20% 835,068 21% 691,017 16% 595,582 7%
Subordinated debts 30,205 76% 17,204 121% 7,789 15% 6,792 -23% 8,794 0% 8,797 96%
Other liabilities 124,893 47% 85,151 70% 49,943 18% 42,315 1% 41,968 56% 26,909 8%
2,135,425 51% 1,416,838 24% 1,142,119 9% 1,043,185 27% 822,245 22% 676,659 8%
NET ASSETS 80,755 24% 65,052 19% 54,833 5% 52,262 12% 46,682 24% 37,720 27%

REPRESENTED BY
Share capital - net 32,453 10% 29,478 13% 26,174 0% 26,174 0% 26,174 0% 26,174 0%
Reserves 14,952 18% 12,684 21% 10,517 31% 8,029 21% 6,640 33% 4,991 43%
Surplus/(Deficit) on revaluation of
assets - net of tax 1,829 -179% (2,323) 70% (1,369) -123% 5,955 11% 5,371 65% 3,260 13%
Unappropriated profit 31,522 25% 25,213 29% 19,511 61% 12,103 42% 8,497 158% 3,296 -217%
80,755 24% 65,052 19% 54,833 5% 52,262 12% 46,682 24% 37,720 27%
Profit & Loss Account
Mark-up / return / interest earned 327,194 139% 137,168 68% 81,651 -5% 86,019 6% 80,867 72% 46,893 35%
Mark-up / return / interest expensed (286,248) 169% (106,410) 106% (51,775) -17% (62,694) 16% (54,110) 102% (26,840) 41%
Net mark-up / interest income 40,946 33% 30,758 3% 29,876 28% 23,325 -13% 26,757 33% 20,053 29%
Non mark-up / interest income 17,718 68% 10,576 34% 7,904 -39% 13,046 231% 3,940 7% 3,673 -20%
Total income 58,663 42% 41,335 9% 37,780 4% 36,371 18% 30,696 29% 23,726 18%
Non mark-up / interest expenses (37,498) 35% (27,705) 32% (21,014) 20% (17,519) 18% (14,876) 17% (12,666) 25%
Profit before provisions 21,165 55% 13,630 -19% 16,766 -11% 18,852 19% 15,820 43% 11,060 10%
Provisions and write offs - net 53 -99% 4,878 197% 1,642 -124% (6,862) 286% (1,776) -255% 1,148 -108%
Profit before taxation 21,218 15% 18,508 1% 18,408 54% 11,989 -15% 14,044 15% 12,208 -360%
Taxation - net (9,879) 29% (7,673) 29% (5,968) 18% (5,046) -13% (5,795) 25% (4,645) -438%
Profit after taxation 11,339 5% 10,834 -13% 12,440 79% 6,944 -16% 8,249 9% 7,564 -328%

Bank’s Asset Base has registered consistent growth during 2018-2023 and it crossed Rs. 2.0 Trillion mark in 2023. During year 2023, Total Assets
registered growth of 50% while CAGR for 2018-23 remained at 22%.
Deposits also grew at a steady rate with a CAGR of 18%. Highest growth of 24% was registered in year 2023 . During the period 2018-2023, 239 Branches
were opened by the Bank.
Owing to consistent growth in profitability, the Equity registered a steady growth. The YOY growth for year 2023 remained at 24%. On profitability side,
Markup Income of the Bank registered a CAGR of 45% during 2018-2023. The main components were Markup earned on Advances & Investments. In
line with Bank’s strategy to grow Advances portfolio cautiously and divert incremental funds towards investment in risk free Government Securities, the
major contribution came from Markup Income on Investments.
Markup Expense also registered a CAGR of 57% due to above stated growth in Deposits. It also includes impact of change in Minimum Profit Rates on PLS
Deposits in line with change in SBP Policy Rate.
Non Markup Income registered as CAGR of 25% during 2018-2023. The main contribution was made by Capital Gains realized on Securities during
different years. The Fee Based Income also registered as steady growth. Non-Markup Expenses registered a CAGR of 24%. The rise is mainly on account
of personnel/property expenses in line with expansion in Branch network (239 Branches added), inflation and investment in new technologies.
Provision Reversal for year 2023 stood at Rs. 0.05 Billion as against Provision Reversal of Rs. 4.9 Billion during year 2022. The Charge of Rs. 6.9 Billion for
year 2020 includes General Provision of Rs. 3.3 Billion and Specific Provision of Rs. 1.7 on subjective basis. The Bank is fully compliant with the provisioning
requirements under prudential regulations of SBP. As of December 31, 2023, a general provision of Rs. 0.7 Billion has also been maintained by the Bank.

BOUND BY
COLLABORATIVE
SPIRIT 89
 SIX YEARS’ FINANCIAL
PERFORMANCE
Financial Ratios 2018-2023
2023 2022 2021 2020 2019 2018
Rs in million

Profit and loss account

Mark-up/ return earned 327,194 137,168 81,651 86,019 80,867 46,893
Mark-up/ return expensed 286,248 106,410 51,775 62,694 54,110 26,840
Net interest margin 40,946 30,758 29,876 23,325 26,757 20,053
Fee, Commission, brokerage, FX and other income 11,895 9,525 5,741 4,442 3,614 3,564
Dividend and capital gains 5,823 1,051 2,162 8,603 325 109
Total income 58,663 41,335 37,780 36,371 30,696 23,726
Total Non markup expenses 37,498 27,705 21,014 17,519 14,876 12,666
Operating profit before tax and provision 21,165 13,630 16,766 18,852 15,820 11,060
WWF 324 289 363 335 285 -
Admin expenses 37,120 27,374 20,637 16,880 14,453 12,613
Provisions / write-offs (53) (4,878) (1,642) 6,862 1,776 (1,148)
Profit before tax 21,218 18,508 18,408 11,989 14,044 12,208
Profit after tax 11,339 10,834 12,440 6,944 8,249 7,564
Cash / stock dividend * 3,272 2,974 3,305 2,644 1,983 1,983
* Included dividends announced after year end

Statement of Financial Position

Authorised capital 50,000 50,000 50,000 50,000 50,000 50,000
Paid up capital - net 32,453 29,478 26,174 26,174 26,174 26,174
Reserves 14,952 12,684 10,517 8,029 6,640 4,991
Unappropriated Profit 31,522 25,213 19,511 12,103 8,497 3,296
Shareholder’s equity 78,926 67,375 56,202 46,306 41,311 34,460
Surplus on revaluation of assets - net of tax 1,829 (2,323) (1,369) 5,955 5,371 3,260
Total Assets 2,216,180 1,481,890 1,196,952 1,095,446 868,928 714,380
Earning Assets 1,868,086 1,297,199 1,054,108 972,981 747,797 617,234
Gross Advances 849,510 634,376 534,163 442,760 428,846 425,756
Advances - net of provisions 806,387 589,581 484,405 391,161 383,313 381,877
Non-Performing Loans (NPLs) 50,880 51,561 52,032 57,251 51,363 49,385
Investments 913,191 638,259 531,683 567,789 361,453 210,071
Total Liabilities 2,135,425 1,416,838 1,142,119 1,043,185 822,245 676,659
Deposits 1,520,854 1,227,339 1,002,955 835,068 691,017 595,582
Current & Saving Deposits (CASA) 947,454 794,236 643,842 545,920 471,581 383,859
Borrowings 453,966 80,820 71,323 154,841 77,045 41,793
Interest bearing Liabilities 1,285,253 722,736 596,619 583,269 426,088 362,367
Contingencies and Commitments 542,766 501,638 469,024 213,750 195,225 145,808

Profitability ratios
Profit before tax ratio % 6.48% 13.49% 22.54% 13.94% 17.37% 26.03%
Gross Yield on Average Earning Assets % 20.67% 11.67% 8.06% 10.00% 11.85% 7.95%
Gross Yield on Avg. Earning Assets (incl. dividend
& capital gains) % 21.04% 11.76% 8.27% 11.00% 11.90% 7.97%
Gross Spread % 12.51% 22.42% 36.59% 27.12% 33.09% 42.76%
Net markup/ interest margin % 1.85% 2.08% 2.50% 2.13% 3.08% 2.81%
Non interest income to total income % 5.14% 7.16% 8.83% 13.17% 4.65% 7.26%
Return on average equity (ROE) (without surplus) % 15.50% 17.53% 24.27% 15.85% 21.77% 24.68%
Return on average assets (ROA) % 0.61% 0.81% 1.09% 0.71% 1.04% 1.10%
Return on Capital Employed (ROCE) % 15.50% 17.53% 24.27% 15.85% 21.77% 24.68%
Interest Ratio % 87.49% 77.58% 63.41% 72.88% 66.91% 57.24%
Non markup/ interest income to total assets % 0.80% 0.71% 0.66% 1.19% 0.45% 0.51%
Net markup/ interest income(after provision)to
total assets % 1.85% 2.40% 2.63% 1.50% 2.87% 2.97%
Markup/interest expense to markup/interest income % 87.49% 77.58% 63.41% 72.88% 66.91% 57.24%

90 Annual Report 2023

 2023 2022 2021 2020 2019 2018
Rs in million

Admin expense to profit before tax (times) 1.75 1.48 1.12 1.41 1.03 1.03
Operating Expense Ratio (times) 1.77 1.50 1.14 1.46 1.06 1.04
Gain Ratio % 8.96% 0.83% 4.73% 23.28% 0.72% 0.12%
Net investment in Finance Lease to Total Assets % 2.13% 2.63% 3.11% 2.87% 3.80% 4.91%
Admin Exp to Profit before Tax % 174.94% 147.91% 112.11% 140.79% 102.91% 103.31%
Non-markup/ interest expense to total income % 10.87% 18.75% 23.46% 17.68% 17.54% 25.05%
Admin expense to non- markup income (times) 2.10 2.59 2.61 1.29 3.67 3.43
Cost to income ratio % 63.92% 67.03% 55.62% 48.17% 48.46% 53.38%
Cost to income ratio (excluding WWF) % 63.37% 66.33% 54.66% 47.25% 47.53% 53.38%
Shareholder funds % 3.56% 4.55% 4.70% 4.23% 4.75% 4.82%
Total shareholder return % 15.95% 17.40% 22.65% 15.96% 22.40% 24.83%
Return on shareholder funds % 15.95% 17.40% 22.65% 15.96% 22.40% 24.83%

Investment ratios / Market ratios

Earnings per share (before tax) Rs 6.49 5.66 6.19 4.54 5.31 4.62
Earnings per share (after tax) Rs 3.47 3.31 4.18 2.63 3.12 2.86
Breakup value per share / Net assets per share
- without surplus on revaluation of fixed assets
& investments “ Rs 24.125 22.654 21.259 17.516 15.626 13.035
- without surplus on revaluation of fixed assets Rs 23.461 20.391 19.307 19.051 16.934 13.545
- Including Investment in Related Party at market value
and also with Surplus on Revaluation of fixed assets Rs 25.578 24.502 23.179 18.658 16.816 14.272
- with surplus on revaluation of fixed assets & investments Rs 24.684 21.872 20.741 19.768 17.658 14.268
Cash / stock Dividend % 10.00% 10.00% 12.50% 10.00% 7.50% 7.50%
Dividend per share % 1 1 1.25 1 0.75 0.75
Dividend Yield ratio (based on cash dividend) % 23.23% 16.00% 14.67% 10.19% 6.89% 6.69%
Dividend Payout ratio % 28.85% 30.20% 29.88% 38.07% 24.04% 26.21%
Price to book value ratio Times 0.26 0.21 0.41 0.46 0.64 0.84
Price to earning ratio Times 1.24 1.89 2.04 3.74 3.49 3.92
Dividend cover ratio Times 3.47 3.31 3.35 2.63 4.16 3.81

Share Information
Market value per share - Dec 31 Rs 6.48 4.57 8.47 9.14 11.33 11.97
High - during the year Rs 8.20 8.80 10 14.33 14.57 13.85
Low - during the year Rs 3.17 4.45 7.61 6.52 6.97 8.1
Market Capitalisation Rs in million 21,200 13,592 22,392 24,163 29,953 31,645

Asset Quality and Liquidity ratios

Gross Advances to deposits ratio % 55.86% 51.69% 53.26% 53.02% 62.06% 71.49%
Gross Advances to deposits & borrowings ratio % 43.02% 48.49% 49.72% 44.73% 55.83% 66.80%
Net Advances to deposits ratio % 53.02% 48.04% 48.30% 46.84% 55.47% 64.12%
Investments to deposits ratio % 60.04% 52.00% 53.01% 67.99% 52.31% 35.27%
Cost of Funds % 15.95% 8.89% 5.16% 7.09% 7.93% 4.31%
Weighted Average Cost of Deposits % 14.78% 8.87% 5.12% 7.04% 7.68% 4.17%
Cash flow coverage ratio times 1.24 1.40 (0.57) 3.77 3.80 (1.35)
CASA to total deposits % 62.30% 64.71% 64.19% 65.37% 68.24% 64.45%
Advances net to total assets % 36.39% 39.79% 40.47% 35.71% 44.11% 53.46%
NPLs to Gross advances ratio % 5.99% 8.13% 9.74% 12.93% 11.98% 11.60%
Provision to Gross advances ratio % 5.08% 7.06% 9.32% 11.65% 10.62% 10.31%
NPLs to Shareholders Equity % 64.47% 76.53% 92.58% 123.64% 124.33% 143.31%
Coverage Ratio (specific provision/ NPLs) % 83.39% 85.68% 89.76% 83.58% 87.84% 88.14%
Coverage Ratio (total provision/ NPLs) % 84.75% 86.88% 95.63% 90.13% 88.65% 88.85%
Earning assets to total assets ratio % 84.29% 87.54% 88.07% 88.82% 86.06% 86.40%

BOUND BY
COLLABORATIVE
SPIRIT 91
 SIX YEARS’ FINANCIAL
PERFORMANCE
Financial Ratios 2018-2023
2023 2022 2021 2020 2019 2018
Rs in million

Investment to deposit ratio % 60.04% 52.00% 53.01% 67.99% 52.31% 35.27%

Investments to total assets ratio % 41.21% 43.07% 44.42% 51.83% 41.60% 29.41%
Cash & Cash Equivalents to Total Assets % 4.92% 5.26% 6.69% 6.54% 7.32% 6.88%
Cash to Current Liabilities % 5.38% 6.02% 7.70% 7.24% 8.16% 7.66%
Deposits to total assets % 68.63% 82.82% 83.79% 76.23% 79.53% 83.37%
NPLs write off to NPLs provisions % -3.35% -11.08% -3.70% 11.76% 3.63% -4.78%
Total liabilities to total assets % 96.36% 95.61% 95.42% 95.23% 94.63% 94.72%
Commitments & contingencies to total equity
(E5/A) (times) Times 6.88 7.45 8.35 4.62 4.73 4.23
Earning assets to interest bearing Liabilities Times 1.45 1.79 1.77 1.67 1.76 1.70
Deposits to shareholder equity Times 19.27 18.22 17.85 18.03 16.73 17.28
Assets to Equity Times 27.44 22.78 21.83 20.96 18.61 18.94
Current / Quick Ratio Times 1.07 1.11 1.12 1.08 1.08 1.08
Efficiency ratio % 62.38% 59.84% 53.04% 57.81% 51.22% 49.05%
Cash reserve ratio % 4.15% 3.62% 4.38% 4.20% 3.89% 3.52%
Liquid assets to total assets ratio % 45.40% 47.32% 49.89% 57.02% 48.08% 35.49%
Gross non performing assets to gross advances % 6.62% 9.33% 11.09% 14.65% 13.64% 13.24%
Gross non performing assets to gross advances
& investments % 3.17% 4.59% 5.48% 6.42% 7.40% 8.82%
Non-Performing loans to Total Loans % 5.99% 8.13% 9.74% 12.93% 11.98% 11.60%
Debt to equity ratio (as per market value) times 0.43 0.35 0.15 0.14 0.17 0.20
Debt to equity ratio (as per book value) times 0.37 0.26 0.14 0.13 0.19 0.23
Statutory liquidity reserve ratio % 60.49% 52.41% 52.69% 68.53% 52.88% 35.80%

Risk Adequacy
Tier I Capital Rs in million 86,194 61,876 43,994 41,937 37,926 28,931
Total Eligible Capital Rs in million 102,678 68,272 53,333 57,207 49,669 38,662
Risk Weighted Assets (RWA) Rs in million 558,951 520,751 434,510 352,514 335,542 293,495
Tier I to RWA % 15.42% 11.88% 10.12% 11.90% 11.30% 9.86%
Common equity tier 1 capital adequacy ratio % 13.29% 10.34% 10.12% 11.90% 11.30% 9.86%
RWA to total assets % 25.22% 35.14% 36.30% 32.18% 38.62% 41.08%
Capital Adequacy Ratio % 18.37% 13.11% 12.27% 16.23% 14.80% 13.17%
Net Return on Average RWA % 2.10% 2.27% 3.16% 2.02% 2.62% 5.15%
Capital ratio % 3.56% 4.55% 4.70% 4.23% 4.75% 4.82%

DuPont Analysis
Net Operating Margin % 19.33% 26.21% 32.93% 19.09% 26.87% 31.88%
Asset Utilization % 3.17% 3.09% 3.30% 3.70% 3.88% 3.46%
Leverage Ratio / Equity Multiplier % 25.36 22.35 21.41 19.85 18.76 20.34

Industry Share *
Deposits % 5.22% 5.23% 4.27% 3.84% 3.73% 3.73%
Advances % 6.62% 4.99% 4.10% 3.87% 4.62% 4.63%
Investments % 3.51% 3.47% 2.89% 3.90% 3.03% 2.35%
Total assets % 4.78% 4.14% 3.34% 3.64% 3.46% 3.25%
Market Capitalisation Rs in million 21,200 13,592 22,392 24,163 29,953 31,645

* based on economic data released by State Bank of Pakistan

92 Annual Report 2023

QUALITATIVE
PERFORMANCE ANALYSIS
2023 2022 2021 2020 2019 2018
Rs in million

Per Branch
Gross Advances Rs. In million 1,042 813 807 696 687 739
Deposits Rs. In million 1,866 1,574 1,515 1,313 1,107 1,034
CASA Rs. In million 1,163 1,018 973 858 756 666
PBT Rs. In million 14 14 19 11 13 13

Others
No. of accounts No. 4,204,103 3,664,821 3,014,462 2,673,992 2,635,985 2,722,962
No. of branches No. 815 780 662 636 624 576
No. of permanent employees No. 11,420 11,093 9,358 7,930 6,620 4,277
Staff turnover ratio % 10.81% 9.80% 8.18% 6.47% 9.18% 11.00%
Customer satisfaction index % 45.00% 58.00% 20.00% 0.00% 0.00% 0.00%

Employee productivity rate

Deposits per employee Rs in million 111 94 89 84 72 69
Advances per employee Rs in million 59 45 43 39 40 44
PBT per employee Rs in million 2 1 2 1 1 1

Digital Banking
No. of ATMs No. 794 706 647 588 557 497
No. of Debit cards / smart cards issued
during the year No. 347,065 294,992 381,267 196,814 172,454 150,884

Internet Banking
No. of customers No. 43,296 31,356 - - - -
No. of transactions No. 142,145 89,999 - - - -
Volume of transactions Rs in million 4,086 2,622 - - - -

Mobile Banking
No. of customers No. 493,642 410,286 337,803 268,178 144,600 89,187
No. of transactions - financial No. 12,055,406 7,906,404 5,404,907 3,113,437 1,231,952 -
Volume of transactions Rs in million 310,421 187,551 119,747 64,289 24,766 -

Credit Cards
No. of new issuance No. 11,704 94 - - - -
No. of customers No. 15,525 5,855 - - - -
Total spend (transaction volume) Rs in million 3,781 306 - - - -

Auto Loan
No. of loans disbursed No. 1,158 2,375 4,703 2,944 3,361 5,656
Outstanding volume Rs in million 17,524 21,722 22,696 17,472 13,432 10,663

BOUND BY
COLLABORATIVE
SPIRIT 93
 QUALITATIVE
PERFORMANCE ANALYSIS
2023 2022 2021 2020 2019 2018
Rs in million

Home Loan
No. of loans disbursed No. 182 952 684 24 24 138
Outstanding volume Rs in million 7,087 7,533 3,687 655 655 705

Personal Loan
No. of loans disbursed No. 69,381 53,200 32,540 29,150 29,150 24,858
Outstanding volume Rs in million 11,574 10,633 9,635 8,191 8,191 6,974

Bancassurance
No. of customers No. 30,250 24,879 20,341 16,876 16,579 12,186
No. of new customers No. 5,371 4,538 3,465 297 4,393 6,790
No. of policies No. 9,021 4,927 3,863 349 5,518 9,804
Bancassurance premium Rs in million 548 275 203 18 260 407

Trade
Imports - volume Rs 386,696 382,296 310,404 146,235 160,376 160,474
Exports - volume Rs in million 343,819 250,131 207,337 156,693 209,393 236,067

Home Remittance
Volume of home remittance USD 819 940 1,019 809 735 713
Volume of home remittance Rs in million 105,908 165,535 165,597 135,865 110,442 86,727
Home remittance BOP market share % 3.11% 3.20% 3.30% 3.10% 3.30% 3.60%

Cash Management
throughput of cash management Rs in million 274,026 216,638 116,809 93,398 - -

94 Annual Report 2023

 SIX YEARS’ - GRAPHICAL
PRESENTATION
Financial Ratios 2018-2023

13.17%
14 18
15.95%
16
12 14.78%
14
8.83%
10
12

7.26%
7.16%

8 10 8.89% 8.87%
7.93%
5.14%

7.68%

4.65%
6 8 7.09% 7.04%

3.08%

2.97%
6 5.16% 5.12%

2.87%

2.81%
2.63%
2.50%
2.40%

4
2.13%

4.31% 4.17%
1.85%

2.08%
1.85%

1.50%
1.19%

4
0.80%

0.71%

0.66%

0.45%

0.51%
2
2

0 0
2023 2022 2021 2020 2019 2018 2023 2022 2021 2020 2019 2018
Net Interest Margin Non interest income to total income Cost of Funds Weighted Average Cost of Deposits
Non markup income to total assets Net markup income(after provision) to total assets

24.83%

4.16
30 1.2 4.5
1.09% 22.40% 1.10%

3.92
3.81
1.04%

3.74
4.0

3.47

3.49
22.65%

3.35
25 1.0

3.31
17.40% 3.5
0.81% 23.23% 15.96% 22.43%

2.63
20 15.95% 0.8 3.0
0.71%
0.61% 19.55%
18.07% 2.5

2.04
1.89
15 15.55% 0.6
14.04% 2.0
1.24

10 0.4 1.5

0.84
0.65
1.0

0.47
0.45
5 0.2
0.26

0.21

0.5

0 0.0 0.0
2023 2022 2021 2020 2019 2018 2023 2022 2021 2020 2019 2018
Return on Assets Return on Shareholder Funds Return on Equity Price to book value ratio Price to earning ratio Dividend cover ratio
come(after provision) to total assets
27.44

100 30
88% 88% 89%
90 86% 86%
22.78

84%
21.83

25
20.96
19.27

18.94
80
18.61
18.22

18.03
17.85

71%
17.28
16.73

68% 68% 20
70 65% 64%
62%
60% 65% 62%
60 53% 64% 15
56% 52% 53%

53%
8.35

50 52% 52%
7.45

10
6.88

4.73

40
4.62

4.23

35% 5
30

20 0
2023 2022 2021 2020 2019 2018 2023 2022 2021 2020 2019 2018
Gross Advances to deposits ratio Investments to deposits ratio Commitments & contingencies to total equity Deposits to shareholder equity
come(after provision) to total assets CASA to total deposits Earning assets to total assets ratio Assets to Equity

40 5
38.07%
3.77

3.80

35 4
28.85%
30
30.20% 29.88% 3
1.77
1.79

1.76

25
1.70
1.67

26.21%
1.45

2
1.40

24.04%
1.24

23.23%
1.12
1.11

1.08
1.07

1.08

1.08

20
0.76
0.43

1
0.35

0.17
0.15

0.13

15
16.00%
14.66%
0
10
10.19%
(0.57)

5 6.89% 6.69% -1
(1.35)

0 -2
2023 2022 2021 2020 2019 2018 2023 2022 2021 2020 2019 2018
Dividend Yield ratio (based on cash dividend) Dividend Payout ratio Earning assets to interest bearing Liabilities Current / Quick Ratio
come(after provision) to total assets Cash flow coverage ratio Debt equity ratio

BOUND BY
COLLABORATIVE
SPIRIT 95
 MARKUP & NON MARKUP
INCOME
2023 2022 2021 2020 2019 2018
Rs in million

Markup earned
Mark-up Earned on Advances 155,223 65,667 35,135 38,860 46,190 28,853
Mark-up Earned on Investments 166,747 68,065 44,717 45,754 31,815 15,855
Mark-up Earned on lendings 4,716 3,141 1,763 1,365 2,705 2,159
Mark-up Earned on Balances with Banks 506 295 37 41 157 26
327,194 137,168 81,651 86,019 80,867 46,893
Markup Expensed
Mark-up expensed on deposits 190,752 90,692 43,955 52,483 46,984 23,531
Mark-up expensed on borrowings 87,918 12,358 6,168 8,411 5,237 2,697
Mark-up expensed on subordinated debts 5,638 1,863 604 862 1,110 611
Mark-up on lease liability against ROU Assets 1,940 1,496 1,048 937 779 -
286,248 106,410 51,775 62,694 54,110 26,840

Net Markup Income 40,946 30,758 29,876 23,325 26,757 20,053

Non Markup income
Fee and commission income 7,429 7,332 5,103 3,732 3,530 3,245
Dividend income 568 708 377 137 104 82
Foreign exchange income 298 1,887 577 328 11 227
Gain on securities - net 5,255 343 1,786 8,466 222 28
Other income - net 4,168 306 61 382 73 92
17,718 10,576 7,904 13,046 3,940 3,673

MARKUP INCOME FROM ADVANCES AND INVESTMENT % INCOME COMPOSITION %

70% 45 43%
62%
57%
40 37%
60% 36%
55% 53%
51% 33%
50% 35
47% 48% 30%
50% 45%
43% 30 27%
39% 26%
40% 25
34% 22% 21%
30% 20
15%
15 13% 13%
20%
10
10%
5

0 0
2023 2022 2021 2020 2019 2018 2023 2022 2021 2020 2019 2018
Income on Advances to Markup Income Income on Investment to Markup Income Net Markup income to Gross Markup Net Markup income to Net Revenue

CASA MIX % COST OF DEPOSITS %

80% 16
14.78%
68%
70% 65% 64% 65% 64% 14
62%
60% 12

50% 10 8.87%
7.68%
40% 8 7.04%

30% 6 5.12%
4.17%
20% 4

10% 2

0% 0
2023 2022 2021 2020 2019 2018 2023 2022 2021 2020 2019 2018

96 Annual Report 2023

SIX YEARS’ OPERATING
EXPENSES
2023 2022 2021 2020 2019 2018
Rs in million
Total compensation expense 18,211 14,320 10,631 8,734 7,213 6,139

Property Expense
Rent and taxes 39 17 22 39 71 970
Insurance 14 10 17 18 19 14
Utilities cost 1,515 1,136 797 664 637 491
Depreciation 774 527 523 589 528 497
Amortization on ROU asset 1,731 1,297 991 891 876 -
Others 127 87 50 45 24 29
4,200 3,074 2,400 2,247 2,154 2,000
Information technology expenses
Software maintenance 1,168 597 513 473 376 200
Hardware maintenance 73 71 55 82 107 96
Depreciation 543 425 348 285 230 216
Amortization 342 144 208 198 174 68
Network Charges 522 493 424 355 331 321
2,648 1,730 1,547 1,393 1,219 901
Other operating expenses
Directors’ fees and allowances 36 58 42 35 9 4
Legal & professional charges 267 222 227 113 105 107
Subscription charges 38 32 39 31 16 16
Outsourced services costs 790 580 438 367 236 362
Traveling & conveyance 2,319 1,738 837 561 584 476
NIFT clearing charges 113 77 68 69 59 50
Depreciation owned assets 596 456 364 307 291 263
Depreciation NBAs 22 33 49 59 74 66
Depreciation Ijarah assets 187 135 119 163 238 360
Training & development 159 148 67 26 37 16
Postage & courier charges 290 246 158 221 144 110
Stationery & printing 600 389 409 265 230 242
Marketing, advertisement & publicity 683 562 650 356 103 139
Donations - 30 - 10 1 -
Auditors Remuneration 17 13 12 11 12 12
Insurance expense 296 249 245 144 140 101
Deposit protection fee 581 509 443 352 337 160
Repair & Maintenance 529 411 294 180 158 138
Entertainment 291 215 151 112 95 90
Fuel charges - Generator 299 244 100 86 108 95
Commission and Brokerage 315 323 274 244 141 120
Bank charges 48 43 36 42 63 52
SMS Banking Charges 521 177 41 48 39 34
ATM Charges 1,637 357 274 174 140 98
Credit Card Charges 19 10 - - - -
Cash remittance & maintenance charges 644 389 270 200 181 190
Branch License fee 33 28 28 17 15 18
ECIB and CNIC verification charged 308 250 204 71 71 34
Others 422 328 224 242 240 222
12,060 8,250 6,059 4,506 3,867 3,573

Total operating expenses 37,120 27,374 20,637 16,880 14,453 12,613

COST TO INCOME RATIO % COST TO INCOME RATIO (EXCLUDING WWF) %

80 70 66%
63%
70 67%
64% 60 55%
53%
60 56%
53% 50 47% 48%
48% 48%
50
40
40
30
30
20
20

10 10

0 0
2023 2022 2021 2020 2019 2018 2023 2022 2021 2020 2019 2018

BOUND BY
COLLABORATIVE
SPIRIT 97
 FREE CASH FLOWS

2023 2022 2021 2020 2019 2018

Rs in million

Summary of Cash flows

Cash flows from operating activities 236,525 126,663 (25,055) 197,832 178,738 (31,838)
Cash flows from investing activities (216,186) (135,976) 36,552 (184,592) (161,062) 23,421
Cash flows from financing activities 10,621 7,294 (3,127) (5,159) (3,270) 4,298
Cash and cash equivalents at beginning
of the year 78,018 80,036 71,667 63,586 49,181 53,300
Cash and cash equivalents at end of the year 108,978 78,018 80,036 71,667 63,586 49,181

Free Cash Flows

Profit before taxation 21,218 18,508 18,408 11,989 14,044 12,208
Dividend income (568) (708) (377) (137) (104) (82)
Payment made to gratuity fund (171) (268) (268) - - -
Income tax paid (7,640) (5,003) (6,194) (4,851) (3,974) (2,843)
Adjustment for non-cash items (10,166) (5,302) (659) (1,340) 2,268 904
Operating assets/ liabilities changes 233,852 119,437 (35,966) 192,170 166,503 (42,027)
Net cash generated from operating activities 236,525 126,663 (25,055) 197,832 178,738 (31,838)
Capital expenditure (5,140) (4,648) (2,461) (1,162) (1,102) (1,566)
Free cash flows 231,385 122,015 (27,517) 196,670 177,635 (33,404)

Summary of Cash Flows

Cash Flow from operating activities mainly represent the core activity of the Bank i.e. mobilization of Deposits. Since
2018, Deposits of the Bank have been growing at a consistent trend with a CAGR of 21%. During year 2023, there was
net inflow of Rs. 294 Billion from Deposits, while a net inflow of Rs. 373 Billion in Borrowings was observed. Further,
there was net outflow of Rs. 216 billion due to growth in Advances portfolio. The major deployment under investing
activities was on account of investment in AFS Securities which resulted in net outflow of Rs. 217 billion. During year
2023, net inflow of Rs. 11 billion in Financing activities was observed due to issuance of subordinated TFCs of Rs. 4.6
billion and ASM for PPTFCs/ADT1 amounting to Rs. 10.9 billion.

CASH FLOWS
236,525

300,000 250,000 231,556

197,832

178,738

250,000 203,089
126,663

200,000 200,000
177,635
150,000
150,000
36,552

100,000
23,421
10,621

122,283
7,294

4,298

50,000
100,000
0
(3,127)

(5,159)

(3,270)
(25,055)

(31,838)

-50,000
50,000
-100,000
(216,186)

(135,976)

(184,592)

-150,000 0
(161,062)

-200,000 (27,249)
(33,404)
-250,000 -50,000
2023 2022 2021 2020 2019 2018 2023 2022 2021 2020 2019 2018
Operating Activities Investing Activities Financing Activities

98 Annual Report 2023