Banking Results 2017 Commercial Banks Operating in Pakistan

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1 kpmg KPMG Taseer Hadi & Co. Chartered Accountants Banking Results 2017 Commercial Banks Operating in Pakistan

2 Foreword This report has been prepared by KPMG Taseer Hadi & Co. and summarizes the performance of selected commercial banks in Pakistan for the year ended 31 December 2017 and compared with The results and KPIs compared for each bank are: Total Assets Capital Adequacy Ratio (CAR) Net Assets Return on Average Equity (ROE) Impairment cover Return on Average Assets (ROA) Net Interest Margin Average Advances to Average Deposits Ratio Spread Non funded income as a percentage of net interest income CASA Non - performing advances to Gross Loans EPS Market Capitalization Profit before and after tax Operating cost to net interest income ratio Reference should be made to the published financial statements of the banks and KPI definitions included in this report to enhance the understanding of ratios and analysis of performance of a particular bank. The financial statements of Bank of Punjab were not published till the date of our publication, and accordingly their results are not included in this report. Comparative figures of 2016 as reported in our Banking Survey 2016 have been updated to correspond with comparative figures reported in 2017 financial statements. We have tried to provide relevant financial analysis of the banks which we thought would be useful for benchmarking and comparison. We welcome any comments, which would facilitate improving the contents of this report. The comments may be sent to Syedanjum@kpmg.com. Karachi: 14 May 2018

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4 Contents EXECUTIVE SUMMARY 1 AT A GLANCE 7 SUMMARY OF FINANCIAL INFORMATION 15 SPREAD 21 STAFF COSTS 23 LOANS AND ADVANCES 25 LIQUIDITY (AVERAGE ADVANCES TO AVERAGE DEPOSITS) 29 DEPOSITS 33 DEFINITIONS 37 GLOSSARY 39 CREDIT RATINGS 41 NUMBER OF BRANCHES 43

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6 Total Assets Executive Summary Total assets of the banks included in report increased by 12% to Rs. 17,573 billion at 31 December 2017 (2016: 14,919 billion). Most banks maintained their rankings in total assets. ICBC, BOK and Sindh improved their ranking at the expense of Soneri, Summit and DIB. Islamic Banks total assets increased to Rs. 1,358 billion at 31 December 2017 from Rs. 1,153 billion last year, registering a growth of 17.3% Rupees in billions 18,000 17,500 17,000 16,500 16,000 15,500 15,000 14,500 14,000 13,500 Total Assets - Rupees in billions 17,573 14, Banks with higher growth than average 70% 60% 60% In percentages 50% 40% 30% 20% 45% 42% 40% 36% 10% 0% ICBC JS BOT Sindh DB Percentage change Profitability In 2017, all banks reported a decrease in profits as compared with the previous year, except 7 banks which reported increased profit. The profits reduced mainly due to reduction in interest rates. Major impact on overall banks profit included settlement payment to New York State Department of Financial Services of Rs billion by HBL. Islamic banks profit reduced slightly to Rs. 12 billion compared to Rs. 13 billion last year. Rupees in billions Profit before tax - Rupees in billions Banking Results

7 Spread The overall average spread of the industry for last five years as disclosed in SBP statistical bulletin is as follows: Average Spread In percentages Spread Deposit Weighted average lending rate Lending 3.22 Weighted average deposit rate in percentages Banking spread The average spread of banks included in our report was 4.03% (2016: 3.84%). Islamic banks improved their spread to 4.3% in 2017 from 4.0% in In percentages Banks with higher spread than average Non-funded income To increase profitability, Banks have put more focus on value added services. Nonfunded income increased by 14.74% from Rs billion to Rs billion. Rupees in billions Non Funded Income - Rupees in billions Banking Results 2017

8 Operating cost - Rupees in billions Operating cost Banks operating cost increased by 10.28% (2016: 8.70%). Rupees in billions Staff Costs Staff costs increased by 9.51% ( %). Rupees in billions Staff Costs - Rupees in billions Loans and Advances Loans and advances increased by 20.3% (2016: 13.3%). Islamic banks loans grew by 33% (2016:13.28%) to Rs. 788 billion (2016: Rs 592 billion). Rupees in billions 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Loans and Advances - Rupees in billions 6,620 5, % % % Banks with high level of growth in advances than average % In percentages % 80.00% 60.00% 40.00% 20.00% 35.26% 93.74% 23.92% 75.21% 42.30% 23.98% 30.05% 29.04% 26.92% 45.57% 34.14% 29.17% 37.16% 0.00% Banking Results

9 Deposits Deposits increased by 10.5% from Rs. 11,328 billion to Rs. 12,522 billion. Islamic banks deposits increased by 17.2% (2016: 14.8%) to Rs. 1,133 billion (2016: Rs. 967 billion). Rupees in billion 12,800 12,600 12,400 12,200 12,000 11,800 11,600 11,400 11,200 11,000 10,800 10,600 Deposits - Rupees in billions 12,522 11, Banks with higher growth in deposits than average 90.00% 80.00% 70.00% 83.35% 64.72% In percentages 60.00% 50.00% 40.00% 30.00% 28.16% 25.82% 27.07% 20.00% 10.00% 12.93% 18.61% 20.27% 18.55% 15.50% 16.37% 19.36% 11.21% 0.00% Average advances to average deposits Average advances to average deposits ratio increased to 47.9% in 2017 (2016: 46.3%). In percentages 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% Bank with higher ADR than average ADR 79.32% 74.76% 68.56% 64.52% 64.52% 63.06% 63.33% 62.52% 59.00% 57.42% 57.42% 51.75% 51.76% 48.72% 48.58% 20.00% 10.00% 0.00% 4 Banking Results 2017

10 CASA Average CASA decreased to 68.0% (2016: 69.6%). In percentages % 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Banks with higher CASA rate than average 91.23% 91.62% 90.82% 82.98% 83.47% 79.98% 81.25% 76.87% 77.65% 77.77% 78.68% 72.77% 74.03% 70.56% 71.73% 68.73% 69.37% 70.00% 68.49% Banking Results

11 6 Banking Results 2017

12 At a Glance HBL NBP UBL MCB Ranking By total assets By net assets By p rofit b efore tax Profit before tax 28,813 56,525 36,144 37,595 41,131 47,154 30,487 36,538 (Rupees in m illions) Net Interest Margin 2.8% 2.8% 1.6% 2.0% 2.3% 3.1% 2.5% 3.7% Spread Return on Average Equity 4.2% 18.1% 13.0% 13.1% 15.5% 17.5% 14.6% 15.4% Return on Average Assets 0.3% 1.4% 1.1% 1.3% 1.4% 1.8% 1.8% 2.1% Operating Cost to Net 76.5% 68.5% 95.1% 89.9% 67.0% 61.6% 71.3% 55.4% Interest Income Ratio Net provision / (reversal) (115) 718 (1,332) (968) 2,776 1, (Rupees in m illions) Impairment cover (Times) Non Performing Advances 8.2% 9.2% 18.5% 16.6% 9.1% 11.1% 6.1% 6.8% to Gross Loans Total Assets 2,684,102 2,506,098 2,376,016 1,981,417 2,105,361 1,661,742 1,373,430 1,076,690 (Rupees in m illions) Net Assets 188, , , , , , , ,960 (Rupees in m illions) Capital Adequacy Ratio 16.0% 15.5% 16.5% 17.2% 15.1% 14.9% 16.3% 19.7% CASA 83.0% 82.1% 76.9% 69.3% 68.7% 69.6% 91.6% 92.7% EPS Market Price Market Capitalization 245, , , , , , , ,701 (Rupees in m illions) Banking Results

13 ABL BAF BAH Ranking By total assets By net assets By p rofit b efore tax Profit before tax 21,144 24,178 14,410 13,354 14,052 13,196 (Rupees in millions) Net Interest Margin 2.0% 2.7% 2.1% 2.1% 2.0% 2.4% Spread Return on Average Equity 12.3% 15.3% 13.5% 13.8% 19.4% 20.1% Return on Average Assets 1.1% 1.4% 0.9% 0.9% 1.0% 1.2% Operating Cost to Net 70.2% 63.8% 87.8% 82.7% 78.2% 69.9% Interest Income Ratio Net provision / (reversal) (2,210) (274) (260) 1,176 (111) (638) (Rupees in m illions) Impairment cover (Tim es) Non Performing Advances 4.6% 5.9% 4.2% 4.8% 1.5% 2.1% to Gross Loans Total Assets 1,247,323 1,071, , , , ,820 (Rupees in millions) Net Assets 108, ,815 66,830 60,925 46,278 42,895 (Rupees in millions) Capital Adequacy Ratio 22.4% 20.9% 13.8% 13.3% 13.9% 14.3% CASA 77.7% 76.0% 77.8% 83.8% 80.0% 79.8% EPS Market Price Market Capitalization 97, ,504 68,322 60,554 64,863 65,563 (Rupees in m illions) 8 Banking Results 2017

14 Meezan Askari HMB SCB Ranking By total assets By net assets By p rofit b efore tax Profit before tax 9,933 10,517 8,352 8,488 9,511 10,348 13,453 15,345 (Rupees in millions) Net Interest Margin 2.1% 2.2% 1.9% 2.0% 1.4% 1.0% 2.5% 3.6% Spread Return on Average Equity 15.8% 20.5% 15.7% 17.5% 14.0% 16.0% 13.3% 15.6% Return on Average Assets 0.8% 1.1% 0.8% 0.9% 1.0% 1.2% 1.7% 2.1% Operating Cost to Net 83.6% 86.4% 93.6% 95.9% 74.2% 80.4% 67.9% 63.7% Interest Income Ratio Net provision / (reversal) 1,320 (185) (1,051) (659) (1,141) (Rupees in m illions) Impairment cover (Times) Non Performing Advances 1.5% 2.1% 9.4% 10.9% 9.3% 12.4% 12.5% 16.4% to Gross Loans Total Assets 785, , , , , , , ,752 (Rupees in millions) Net Assets 38,410 34,773 32,545 32,854 43,863 39,738 62,937 61,282 (Rupees in m illions) Capital Adequacy Ratio 13.4% 13.7% 12.1% 12.5% 17.4% 18.3% 19.3% 20.2% CASA 74.0% 74.3% 83.5% 80.4% 51.4% 55.6% 90.8% 93.0% EPS Market Price Market Capitalization 71,321 68,296 24,336 31,443 36,150 38,770 92,337 97,758 (Rupees in m illions) Banking Results

15 Faysal ICBC JS Soneri Ranking By total assets By net assets By p rofit b efore tax Profit before tax 7,269 6,659 5,332 2,372 1,863 3,854 2,831 3,077 (Rupees in m illions) Net Interest Margin 2.1% 2.0% 1.6% 0.8% 0.9% 1.6% 1.5% 1.9% Spread Return on Average Equity 12.2% 13.2% 27.0% 20.1% 5.4% 12.7% 8.9% 10.3% Return on Average Assets 1.0% 1.0% 1.0% 0.7% 0.3% 1.0% 0.5% 0.7% Operating Cost to Net 91.5% 97.6% 23.8% 50.7% 145.2% 129.4% 105.6% 94.7% Interest Income Ratio Net provision / (reversal) (496) (Rupees in m illions) Impairment cover (Times) Non Performing Advances 10.7% 13.1% % 3.4% 5.9% 7.8% to Gross Loans Total Assets 488, , , , , , , ,521 (Rupees in millions) Net Assets 39,232 35,008 16,840 7,785 19,668 19,762 18,505 18,289 (Rupees in m illions) Capital Adequacy Ratio 15.9% 14.6% 18.6% 12.4% 12.8% 15.7% 12.8% 14.1% CASA 70.0% 67.7% 49.2% 73.9% 46.4% 44.6% 68.5% 68.5% EPS Market Price Market Capitalization 28,058 26, ,065 11,593 14,773 19,458 (Rupees in m illions) 10 Banking Results 2017

16 BOK Summit Islami Sindh Ranking By total assets By net assets By p rofit b efore tax Profit / (loss) before tax 2,795 3,240 (731) (1,941) 271 1,037 2,213 2,449 (Rupees in millions) Net Interest Margin 1.4% 1.6% 1.0% 0.6% 1.9% 1.6% 2.0% 2.2% Spread Return on Average Equity 11.4% 12.6% -9.5% -17.8% 12.4% 5.3% 8.1% 9.3% Return on Average Assets 0.8% 1.1% -0.5% -1.1% 0.8% 0.4% 0.7% 1.0% Operating Cost to Net 78.3% 72.8% 219.3% 216.8% 121.6% 141.8% 78.8% 87.4% Interest Income Ratio Net provision / (reversal) (104) 631 (130) 1,924 (267) (2,030) 256 1,608 (Rupees in millions) Impairment cover (Times) Non Performing Advances 5.5% 15.1% 17.1% 17.7% 12.1% 16.2% 7.9% 2.8% to Gross Loans Total Assets 245, , , , , , , ,206 (Rupees in millions) Net Assets 15,398 16,143 11,057 12,645 14,227 13,066 16,117 15,559 (Rupees in millions) Capital Adequacy Ratio 20.0% 21.3% 5.2% 10.3% 14.5% 13.6% 16.4% 18.2% CASA 49.5% 56.3% 71.7% 76.0% 72.8% 69.8% 70.6% 68.7% EPS (0.50) (1.01) Market Price Market Capitalization 13,503 16,554 7,308 7,826 9,364 13, (Rupees in millions) Banking Results

17 DIB Silk Albaraka Citibank Ranking By total assets By net assets By profit before tax Profit / (loss) before tax 2,564 1,371 1,387 1,285 (531) (101) 3,755 5,191 (Rupees in millions) Net Interest Margin 2.8% 2.6% 3.7% 3.9% 3.1% 2.2% 1.5% 2.1% Spread Return on Average Equity 11.9% 8.5% 9.0% 5.5% -3.5% -1.8% 23.0% 30.5% Return on Average Assets 1.0% 0.6% 0.8% 0.6% -0.3% -0.1% 1.9% 3.2% Operating Cost to Net 87.2% 101.3% 123.1% 122.4% 138.5% 148.2% 71.2% 74.1% Interest Income Ratio Net provision / (reversal) (49) 98 (164) (68) (85) (Rupees in millions) Impairment cover (Times) Non Performing Advances 1.9% 2.5% 6.5% 8.4% 10.1% 10.1% 10.3% 11.8% to Gross Loans Total Assets 182, , , , , , , ,050 (Rupees in Millions) Net Assets 14,912 12,107 13,181 12,055 10,762 11,390 9,203 10,220 (Rupees in Millions) Capital Adequacy Ratio 13.4% 11.2% 10.9% 10.7% 10.2% 10.3% 27.8% 30.1% CASA 69.4% 72.5% 59.5% 55.8% 78.7% 73.8% 81.2% 73.5% EPS (0.28) (0.17) - - Market Price Market Capitalization ,349 14, (Rupees in millions) 12 Banking Results 2017

18 Samba DB FWB BOT Ranking By total assets By net assets By profit before tax Profit / (loss) before tax , (116) (Rupees in millions) Net Interest Margin 1.9% 1.7% 2.2% 2.0% 2.1% 2.5% 1.1% 0.2% Spread Return on Average Equity 5.9% 4.5% 11.4% 7.3% -6.6% 0.4% 3.3% 0.3% Return on Average Assets 0.7% 0.6% 2.5% 1.8% -1.1% 0.1% 1.1% 0.1% Operating Cost to Net 86.7% 94.7% 132.4% 144.2% 133.4% 140.4% 151.8% 257.2% Interest Income Ratio Net provision / (reversal) (13) 12 (18) - - (Rupees in millions) Impairment cover (Times) Non Performing Advances 5.5% 7.7% 1.7% 2.9% 16.5% 20.7% - - to Gross Loans Total Assets 117, ,414 33,210 24,494 24,829 18,521 14,693 10,359 (Rupees in millions) Net Assets 12,708 12,320 6,953 5,538 3,733 3,481 4,163 4,028 (Rupees in millions) Capital Adequacy ratio 19.7% 23.9% 28.8% 26.4% 53.9% 46.6% 69.9% 88.8% CASA 57.7% 51.2% 33.0% 61.5% 91.2% 84.1% 12.2% 23.7% EPS (0.61) Market Price Market Capitalization 7,017 7, (Rupees in millions) Banking Results

19 Islamic Banks Meezan Islami DIB Albaraka MCBIB Ranking By total assets By net assets By profit before tax Profit / (loss) before tax 9,933 10, ,037 2,564 1,371 (531) (101) (351) 114 (Rupees in millions) Net Interest Margin 2.1% 2.2% 1.9% 1.6% 2.8% 2.6% 3.1% 2.2% 1.7% 2.5% Spread Return on Average Equity 15.8% 20.5% 12.4% 5.3% 11.9% 8.5% -3.5% -1.8% -2.6% 0.8% Return on Average Assets 0.8% 1.1% 0.8% 0.4% 1.0% 0.6% -0.3% -0.1% -0.7% 0.3% Operating Cost to Net 83.6% 86.4% 121.6% 141.8% 87.2% 101.3% 138.5% 148.2% 174.9% 125.2% Interest Income Ratio Net provision / (reversal) 1,320 (185) (267) (2,030) (164) (0.1) (94) (Rupees in millions) Impairment cover (Times) Non Performing Advances 1.5% 2.1% 12.1% 16.2% 1.9% 2.5% 10.1% 10.1% 0.0% 0.0% to Gross Loans Total Assets 785, , , , , , , ,799 51,771 28,569 (Rupees in millions) Net Assets 38,410 34,773 14,227 13,066 14,912 12,107 10,762 11,390 9,631 10,266 (Rupees in millions) Capital Adequacy ratio 13.4% 13.7% 14.5% 13.6% 13.4% 11.2% 10.2% 10.3% 23.8% 39.7% CASA 74.0% 74.3% 72.8% 69.8% 69.4% 72.5% 78.7% 73.8% 82.5% 66.5% EPS (0.28) (0.17) (0.26) 0.08 Market Price Market Capitalization 71,321 68,296 9,364 13, (Rupees in millions) 14 Banking Results 2017

20 Summary of Financial Information Assets Bank Cash & bank Investments Lendings to financial institutions Loans and advances - net of provisions Operating fixed assets & intangible assets Other assets Total assets Rupees in millions HBL 286,846 1,374,808 33, ,502 62,795 74,251 2,684,102 NBP 187,073 1,296,537 26, ,345 33,822 91,323 2,376,016 UBL 196,668 1,124,920 35, ,507 50,386 54,986 2,105,361 MCB 116, ,071 5, ,966 42,563 47,744 1,373,430 ABL 86, ,324 8, ,081 48,356 32,863 1,247,323 BAF 75, ,742 48, ,660 17,708 46, ,027 BAH 64, , ,833 22,567 15, ,548 Meezan 69, , , ,929 11,995 14, ,967 Askari 47, ,957 2, ,693 10,729 22, ,956 HMB 43, ,266 10, ,790 3,418 16, ,125 SCB 35, ,488 8, ,655 34,130 25, ,549 Faysal 39, ,706 9, ,532 12,940 15, ,027 ICBC 17, , ,285 8, , ,202 JS 18, ,289 3, ,161 7,590 7, ,954 Soneri 20, ,429 6, ,293 6,581 6, ,134 BOK 12, ,474 1,529 83,369 2,370 5, ,132 Summit 15,997 95,024 10,671 85,523 12,714 13, ,027 Islami 12,934 42,364 21, ,007 9,147 12, ,234 Sindh 13, ,510 5,331 65,052 1,663 5, ,525 DIB 11,597 41,474 4, ,523 1,704 3, ,272 Silk 8,632 38,266 8,621 85,851 4,177 21, ,855 Albaraka 11,848 19,393 5,095 71,204 4,082 9, ,661 Citibank 6,998 57,091 23,931 24, , ,176 SAMBA 4,015 62,918 5,193 40,182 1,247 3, ,151 DB 6,393-19,707 5, ,129 33,210 FWB 1,501 13,588-8, ,829 BOT 3, ,652 2, ,693 1,414,404 8,467, ,953 6,145, , ,300 17,573,486 Banking Results

21 Liabilities and Equity Bank Bills payable Borrowings Deposits Subordinated loans Other liabilities Equity Total Rupees in millions HBL 33, ,803 1,998,935 9,994 54, ,815 2,684,102 NBP 13, ,106 1,727,059-95, ,676 2,376,016 UBL 13, ,082 1,366,158-34, ,494 2,105,361 MCB 22, ,462 1,001,146 3,893 48, ,543 1,373,430 ABL 7, , ,702-24, ,050 1,247,323 BAF 12, , ,346 4,991 46,831 66, ,027 BAH 19, , ,534 10,998 16,575 46, ,548 Meezan 11,168 36, ,180 7,000 19,396 38, ,967 Askari 10,769 71, ,805 4,993 11,257 32, ,956 HMB 9,384 67, ,685-12,871 43, ,125 SCB 18,958 26, ,576-28,048 62, ,549 Faysal 7,304 54, ,081-13,621 39, ,027 ICBC 4, ,725 57,698-8,365 16, ,202 JS 3,824 64, ,365 4,999 9,541 19, ,954 Soneri 4,895 64, ,348 2,998 3,804 18, ,134 BOK 1,131 64, ,247-5,166 15, ,132 Summit 3,065 67, ,607 1,496 4,494 11, ,027 Islami 2,989 15, ,002-5,445 14, ,234 Sindh , ,204-2,327 16, ,525 DIB 3,678 5, ,295 4,000 5,131 14, ,272 Silk 3,193 35, ,278 2,000 2,621 13, ,855 Albaraka 1,690 3,209 98,590 2,643 3,767 10, ,661 Citibank 1,836 15,460 78,818-11,859 9, ,176 SAMBA ,201 54,901-2,654 12, ,151 DB ,212-2,096 6,953 33,210 FWB 530 3,904 16, ,734 24,829 BOT , ,163 14, ,859 2,976,965 12,522,464 60, ,091 1,325,102 17,573, Banking Results 2017

22 Income Statement Bank Spread Net provision / (reversal) Non-markup / Noninterest income Operating income Operating expenses Profit / (loss) before tax Taxation Profit / (loss) after tax Other Comprehensive Income Rupees in millions HBL 83,067 (115) 32,889 92,355 63,541 28,813 20,631 8, NBP 54,604 (1,332) 32,115 88,052 51,908 36,144 12,798 23,346 (9,132) UBL 58,092 2,776 24,756 80,072 38,941 41,131 14,934 26,197 (5,859) MCB 43, ,646 61,511 31,024 30,487 8,439 22,048 (8,654) ABL 31,581 (2,210) 9,509 43,300 22,156 21,144 8,218 12,926 (8,353) BAF 29,288 (260) 10,580 40,128 25,717 14,410 5,797 8,613 (3,069) BAH 25,932 (111) 8,281 34,323 20,271 14,052 5,398 8,654 (1,366) Meezan 20,824 1,320 7,843 27,347 17,414 9,933 4,153 5,780 (1,768) Askari 16,195 (1,051) 6,263 23,516 15,164 8,352 3,224 5,128 (2,490) HMB 14, ,903 20,081 10,570 9,511 3,646 5,865 (1,625) SCB 17, ,200 25,189 11,736 13,453 5,208 8,245 1,204 Faysal 13,960 (496) 5,591 20,048 12,779 7,269 2,755 4,514 (758) ICBC 6, ,841 1,509 5,332 2,013 3, JS 6, ,046 11,167 9,305 1, ,067 (1,648) Soneri 6, ,269 9,862 7,031 2,831 1,188 1,643 (1,269) BOK 4,799 (104) 1,651 6,554 3,758 2,795 1,005 1,790 (1,034) Summit 2,887 (130) 2,582 5,600 6,331 (731) 396 (1,127) (645) Islami 5,093 (267) 1,103 6,464 6, (1,419) 1,690 (637) Sindh 5, ,328 6,456 4,243 2, ,277 (719) DIB 6, ,903 8,317 5,753 2, ,602 (257) Silk 5, ,943 8,141 6,754 1, ,136 (53) Albaraka 3, ,509 5,040 (531) (142) (389) (238) Citibank 2,940 (68) 2,839 5,848 2,093 3,755 1,521 2,234 (71) SAMBA 2, ,975 2, (350) DB ,390 2,147 1,005 1, FWB (116) 122 (238) (10) BOT , , , , , , ,087 (47,460) Banking Results

23 Islamic Banks Assets Bank Cash & bank Investments Lendings to financial institutions Loans and advances - net of provisions Rupees in millions Operating fixed assets & intangible Other assets Total assets Meezan 69, , , ,929 11,995 14, ,967 Islami 12,934 42,364 21, ,007 9,147 12, ,234 DIB 11,597 41,474 4, ,523 1,704 3, ,272 Albaraka 11,848 19,393 5,095 71,204 4,082 9, ,661 MCBIB 6,094 9,186 1,400 31,473 2, , , , , ,136 29,551 39,715 1,357,905 Liabilities and Equity Bank Bills payable Borrowings Deposits Subordinated loans Other liabilities Equity Total Rupees in millions Meezan 11,168 36, ,180 7,000 19,396 38, ,967 Islami 2,989 15, ,002-5,445 14, ,234 DIB 3,678 5, ,295 4,000 5,131 14, ,272 Albaraka 1,690 3,209 98,590 2,643 3,767 10, ,661 MCBIB 314 7,927 32,691-1,208 9,631 51,771 19,839 68,775 1,132,758 13,643 34,947 87,943 1,357,905 Income Statement Bank Spread Net provision / (reversal) Non-markup / Noninterest Operating income Operating expenses Rupees in millions Profit / (loss) before tax Taxation Profit / (loss) after tax Other Comprehensive Income Meezan 20,824 1,320 7,843 27,347 17,414 9,933 4,153 5,780 (1,768) Islami 5,093 (267) 1,103 6,464 6, (1,419) 1,690 (637) DIB 6, ,903 8,317 5,753 2, ,602 (257) Albaraka 3, ,509 5,040 (531) (142) (389) (238) MCBIB 1,055 (0.1) 439 1,494 1,845 (351) (88) (263) (384) 37,212 1,337 12,256 48,131 36,245 11,886 3,466 8,420 (3,284) 18 Banking Results 2017

24 Islamic Banking Business of Conventional Banks Assets Bank Cash & bank Investments Due from financial institutions Islamic financing and related assets Operating fixed assets Other assets Total assets Rupees in millions HBL 7, ,616 1,615 84,298-1, ,094 BAF 10,538 37,914 30,891 55,605 2,075 2, ,374 Faysal 7,830 25,400-45,601 1,685 3,573 84,089 UBL 11,980 25,402 3,694 22, ,909 BOK 3,605 9,680 1,529 41, ,421 SCB 2,726 6,233 4,788 42, ,861 HMB 2,540 28,341 7,568 13, ,379 53,807 MCB 6,094 9,186 1,400 31,473 2, ,771 BAH 3,511 11,334-34, ,476 Askari 4,159 6, , ,022 47,715 NBP 5,829 17,855-18, ,149 43,974 Summit 1,729 5,861 5,936 10, ,978 Silk 1,044 1,670-17, ,268 ABL 1,125 8,304 1,915 4, ,350 Soneri 1,029 4,446 4,109 4, ,219 15,581 Sindh 562 1,453 2,990 2, ,458 71, ,429 67, ,035 9,882 16, ,126 Liabilities and Equity Bank Bills payable Due to financial institutions Deposits Other liabilities Equity Total Rupees in millions HBL 7 24, ,449 1,606 9, ,094 BAF 2,686 3, ,672 6,073 12, ,374 Faysal 1,329 4,450 70,229 3,047 5,034 84,089 UBL 401 1,501 59, ,842 63,909 BOK ,516 15,227 4,645 57,421 SCB 163 3,724 40,274 7,337 5,363 56,861 HMB 658 1,851 48, ,449 53,807 MCB 314 7,927 32,691 1,208 9,631 51,771 BAH 31 4,301 37,867 2,889 5,388 50,476 Askari 776 2,410 37,651 3,388 3,490 47,715 NBP ,908 5,377 1,563 43,974 Summit , ,566 24,978 Silk ,257 3,809 2,593 21,268 ABL , ,350 Soneri , ,227 15,581 Sindh 44-6, ,458 8,010 56, ,680 51,780 67, ,126 Banking Results

25 Income Statement Bank Net spread earned Depreciation on assets given on Ijarah Net provision / (reversal) Other income / (loss) Rupees in millions Operating expenses Profit / (loss) before tax HBL 5, (85) 693 4,032 BAF 4, ,939 2,590 Faysal 2, , UBL 1, BOK 1,696 - (101) 157 1, SCB 2,458 - (93) 803 1,779 1,575 HMB MCB 1,055 - (0.1) 439 1,845 (351) BAH 1, Askari 1, ,673 (236) NBP 1, ,588 (228) Summit Silk ABL (382) Soneri (3 0) Sindh (27) 25, ,715 18,765 9, Banking Results 2017

26 Spread Average Spread of Banks as per report Average spread of banks has increased in 2017 (4.03%) as compared to 2016 (3.84%). In percentages BOT FWB DB SAMBA Citibank Albaraka Silk DIB Sindh Islami Summit BOK Soneri JS ICBC Faysal SCB HMB Askari Meezan BAH BAF ABL MCB UBL NBP HBL Difference between mark-up / return / interest earned on loans and advances as a percentage of average loans and advances at two year ends and markup / return / interest expense of deposits as a percentage of average deposits at two year ends Banking Results

27 Average Spread of Islamic Banks as per report Average spread of Islamic banks in 2017 was 4.3% as compared to 4.0% in In percentages 3.7 MCBIB 3.6 Albaraka DIB Islami Meezan Difference between mark-up / return / interest earned on loans and advances as a percentage of average loans and advances at two year ends and markup / return / interest expense of deposits as a percentage of average deposits at two year ends Banking Results 2017

28 Staff Costs Staff costs averaged approximately 48.5% of total operating expenses in 2017 (2016: 48.8%). Staff cost Number of staff Cost per staff Rupees in millions Numbers Rupees in thousands HBL 30,449 26,667 18,129 17,303 1,680 1,541 NBP 33,276 33,305 16,590 16,474 2,006 2,022 UBL 20,566 19,103 15,536 14,728 1,324 1,297 MCB 15,875 12,000 16,252 13, Staff cost includes salaries, allowances and staff retirement benefits ABL 11,626 11,175 11,562 11,163 1,006 1,001 BAF 11,653 10,972 8,020 7,902 1,453 1,389 BAH 9,812 8,522 11,944 10, Meezan 8,816 7,824 10,030 9, Askari 8,068 7,924 7,534 7,252 1,071 1,093 HMB 5,382 5,017 4,791 4,621 1,123 1,086 SCB 5,858 5,776 3,650 3,803 1,605 1,519 Faysal 5,438 5,127 7,030 6, ICBC 1, ,157 6,850 JS 4,176 3,523 5,364 4, Soneri 2,796 2,674 4,021 3, BOK 2,326 1,890 1,405 1,366 1,655 1,384 Summit 2,433 2,323 2,913 3, Islami 2,796 2,712 4,227 4, Sindh 2,079 1,843 2,320 2, DIB 2,285 2,105 2,612 2, Silk 3,103 2,694 3,711 3, Albaraka 2,080 1,423 2,555 2, Citibank ,708 2,598 SAMBA 1, ,498 1,359 DB ,794 4,423 FWB BOT ,753 1, , , , ,849 Islamic Banks Staff cost Number of staff Cost per staff Rupees in millions Numbers Rupees in thousands Meezan 8,816 7,824 10,030 9, Islami 2,796 2,712 4,227 4, Staff cost includes salaries, allowances and staff retirement benefits DIB 2,285 2,105 2,612 2, Albaraka 2,080 1,423 2,555 2, MCBIB 1, , ,987 14,713 20,374 19,787 Banking Results

29 Remuneration of Executives CEO Remuneration Remuneration of ExecutivesNumber of Executives Rupees in thousands Numbers HBL * 99,322 81,310 14,496,681 12,328,574 4,380 3,949 Remuneration of executives NBP 59,599 49,728 9,098,880 8,713,713 2,325 2,396 UBL * 216, ,167 10,063,784 8,333,220 2,145 1,936 MCB 95,448 89,141 5,332,629 4,118,398 1,904 1,432 ABL 45,053 57,910 4,743,310 4,248,026 1,683 1,415 BAF * 119, ,681 5,063,436 5,017,705 2,013 2,166 BAH 59,452 49,342 5,156,758 4,364,033 2,368 2,066 Meezan * 73,854 65,911 2,780,577 2,442,529 1,270 1,089 Askari 106,215 93,079 3,007,711 2,910, HMB 72,964 73,417 2,973,580 2,942,521 1,230 1,214 SCB 73,444 71,732 3,321,359 2,973,065 1,268 1,236 Faysal * 30,103 48,466 1,953,211 1,839, ICBC 34,786 49, , , JS 41,600 39,500 2,961,718 2,177,549 1,558 1,118 Soneri * 60,413 68,358 1,708,950 1,417, BOK 21,892 20, , , Summit 35,391 34,373 1,197,518 1,064, Islami 37,506 36, , , Sindh 31,641 24,529 1,019, , DIB 76,970 72,103 1,053, , Silk 94,526 78,954 1,577,765 1,300, Albaraka 47,907 55, , , Citibank 79,708 71, , , SAMBA 83,302 72, , , DB 83,744 56, , , FWB 26,715 26, , , BOT 24,887 17,386 30,166 35, ,832,144 1,649,523 82,355,931 72,047,660 28,137 25,283 Islamic Banks Remuneration of executives CEO Remuneration Remuneration of ExecutivesNumber of Executives Rupees in thousands Numbers Meezan * 73,854 65,911 2,780,577 2,442,529 1,270 1,089 Islami 37,506 36, , , DIB 76,970 72,103 1,053, , Albaraka 47,907 55, , , MCBIB 47,946 43, , , , ,218 6,322,475 5,203,675 2,945 2,507 The above information has been obtained from the note Compensation of Directors and Executives in the Financial Statements of the Banks. However, for the institutions marked with a steric *, information about certain benefits such as performance bonus and shares options scheme is disclosed in other notes. In most cases the information has been disclosed in aggregate with either key management personnel or with executives. The amount paid to CEO is not identified separately. Accordingly those benefits are not included in the CEO remuneration. The CEO remuneration disclosed above have been taken from the un-consolidated financial statements. 24 Banking Results 2017

30 Loans and Advances Total loans and advances of banks under review have increased by 20.3% in 2017 (2016: 13.3%) to Rs. 6,620 billion at 31 December 2017 (2016: Rs. 5,502 billion). The growth of various categories of banks was as follows: In percentages All Banks 20.3% 13.3% Islamic Banks 33.0% 26.6% Growth in Loans and Advances Annual increase Gross Advances In percentages Rupees in millions HBL , , ,563 NBP , , ,615 UBL , , ,734 MCB , , ,276 ABL , , ,812 BAF , , ,353 BAH , , ,702 Meezan , , ,776 Askari , , ,419 HMB , , ,076 SCB , , ,370 Faysal , , ,624 ICBC 35.3 (12.9) 8,247 6,097 6,999 JS ,900 96,472 79,402 Soneri , , ,617 BOK (10.2) 87,673 36,054 40,137 Summit ,532 94,256 83,099 Islami ,488 89,637 82,213 Sindh ,454 56,049 46,708 DIB 26.9 (10.3) 121,481 95, ,651 Silk ,138 69,312 67,045 Albaraka ,492 71,090 50,548 Citibank 12.3 (0.7) 27,282 24,288 24,460 SAMBA ,503 30,988 26,260 DB 75.2 (50.2) 5,814 3,318 6,667 FWB ,129 9,479 9,253 BOT 18.7 (28.5) 2,198 1,852 2, ,620,076 5,501,765 4,856,968 Banking Results

31 Annualised Increase ( ) In percentages (10.0) (6.6) (7.9) HBL NBP UBL MCB ABL BAF BAH Meezan Askari HMB SCB Faysal ICBC JS Soneri BOK Summit Islami Sindh DIB Silk Albaraka Citibank SAMBA DB FWB BOT Annualised Increase Average: 16.7% Islamic Banks Annual increase Gross Advances In percentages Rupees in millions Meezan , , ,776 Islami ,488 89,637 82,213 DIB 26.9 (10.3) 121,481 95, ,651 Albaraka ,492 71,090 50,548 MCBIB ,474 16,174 12, , , , Banking Results 2017

32 Annualised Increase ( ) In percentages Meezan 41.0 Islami 26.0 DIB 6.7 Albaraka 22.2 MCBIB 58.2 Market Share of Loans and Advances In percentages Rupees in millions HBL , ,250 NBP , ,555 UBL , ,159 MCB , ,170 Meezan , ,617 BAF , ,869 ABL , ,056 BAH , ,268 Askari , ,123 Faysal , ,826 HMB , ,882 Less than 3% ,287, , ,620,076 5,501,765 HMB 3.0% Faysal 3.9% Less than 3% 19.3% HBL 13.9% NBP 13.0% Askari 4.3% BAH 5.2% ABL 5.9% BAF 6.3% Meezan 6.5% MCB 8.3% UBL 10.4% Banking Results

33 Banks with less than 3% market share In percentages Rupees in millions JS ,900 96,472 Soneri , ,753 SCB , ,631 Islami ,488 89,637 DIB ,481 95,714 Summit ,532 94,256 Silk ,138 69,312 BOK ,673 36,054 Albaraka ,492 71,090 Sindh ,454 56,049 SAMBA ,503 30,988 Citibank ,282 24,288 FWB ,129 9,479 ICBC ,247 6,097 DB ,814 3,318 BOT ,198 1, ,287, ,990 SAMBA 0.6% Citibank 0.4% FWB 0.2% ICBC 0.1% DB 0.1% BOT 0.0% BOK 1.3% Sindh 1.0% Albaraka 1.1% JS 2.8% Soneri 2.6% Silk 1.4% SCB 2.4% Summit 1.5% DIB 1.8% Islami 2.0% 28 Banking Results 2017

34 Liquidity (Average Advances to Average Deposits) The total average advances to total average deposits ratio of the banks included in this report has increased to 47.9% in 2017 from 46.3% in 2016 due to growth rate of advances being higher than growth rate of deposits. Advances* Deposits Rupees in millions HBL 884, , ,571 1,998,935 1,885,959 1,634,944 NBP 839, , ,778 1,727,059 1,657,132 1,431,535 UBL 649, , ,072 1,366,158 1,245,792 1,119,953 MCB 507, , ,951 1,001, , ,240 ABL 364, , , , , ,546 BAF 389, , , , , ,137 BAH 304, , , , , ,198 Meezan 407, , , , , ,799 Askari 267, , , , , ,130 HMB 169, , , , , ,209 SCB 139, , , , , ,238 Faysal 237, , , , , ,130 ICBC 8,247 6,097 6,999 57,698 52,779 26,949 JS 175,930 89,732 74, , , ,355 Soneri 126, , , , , ,222 BOK 85,362 34,342 38, , , ,292 Summit 92,466 87,805 77, , , ,742 Islami 124,803 85,071 81, , , ,661 Sindh 68,317 54,967 45, , ,843 83,921 DIB 116,225 92, , , , ,743 Silk 88,632 67,679 64, ,278 86,787 81,098 Albaraka 72,283 67,867 48,483 98, ,843 71,644 Citibank 27,282 24,288 24,460 78,818 75,076 61,743 SAMBA 39,405 28,476 24,303 54,901 50,307 38,844 DB 5,814 3,318 6,667 23,212 14,092 11,977 FWB 10,004 9,333 9,201 16,260 13,709 15,163 BOT 2,198 1,852 2,589 9,432 5,144 5,223 6,205,351 5,228,339 4,618,569 12,522,464 11,328,155 9,959,636 * Excluding export refinance, finance against locally manufactured machinery and long-term financing against export oriented projects as its counter refinance is not included in deposits. Banking Results

35 In percentages Average advances (excluding export refinance, finance against locally manufactured machinery and long-term financing against export oriented projects as its counter refinance is not included in deposits) to average deposits ratio Average advances to average deposits ratio BOT FWB DB SAMBA Citibank Albaraka Silk DIB Sindh Islami Summit BOK Soneri JS ICBC Faysal SCB HMB Askari Meezan BAH BAF ABL MCB UBL NBP HBL Banking Results 2017

36 Islamic Banks Advances* Deposits Rupees in millions Meezan 407, , , , , ,799 Islami 124,803 85,071 81, , , ,661 DIB 116,225 92, , , , ,743 Albaraka 72,283 67,867 48,483 98, ,843 71,644 MCBIB 23,547 13,388 11,938 32,691 14,279 9, , , ,871 1,132, , ,297 * Excluding export refinance, finance against locally manufactured machinery and long-term financing against export oriented projects as its counter refinance is not included in deposits. Average advances (excluding export refinance, finance against locally manufactured machinery and long-term financing against export oriented projects as its counter refinance is not included in deposits) to average deposits ratio Average advances to average deposits ratio MCBIB Albaraka DIB Islami Meezan In percentages Banking Results

37 32 Banking Results 2017

38 Deposits Deposits of banks included in this report increased by 10.5% to Rs. 12,522 billion at 31 December 2017 compared to Rs. 11,328 billion at 31 December Growth in Deposits Annual Increase Deposits In percentages Rupees in millions HBL ,998,935 1,885,959 1,634,944 NBP ,727,059 1,657,132 1,431,535 UBL ,366,158 1,245,792 1,119,953 MCB ,001, , ,240 ABL , , ,546 BAF , , ,137 BAH , , ,198 Meezan , , ,799 Askari , , ,130 HMB , , ,209 SCB , , ,238 Faysal , , ,130 ICBC ,698 52,779 26,949 JS , , ,355 Soneri , , ,222 BOK , , ,292 Summit , , ,742 Islami , , ,661 Sindh , ,843 83,921 DIB 15.5 (5.5) 149, , ,743 Silk ,278 86,787 81,098 Albaraka (6.9) , ,843 71,644 Citibank ,818 75,076 61,743 SAMBA ,901 50,307 38,844 DB ,212 14,092 11,977 FWB 18.6 (9.6) 16,260 13,709 15,163 BOT 83.3 (1.5) 9,432 5,144 5, ,522,464 11,328,155 9,959,636 Banking Results

39 Annualised Increase ( ) In percentages HBL NBP UBL MCB ABL BAF BAH Meezan Askari HMB SCB Faysal ICBC JS Soneri BOK Summit Islami Sindh DIB Silk Albaraka Citibank SAMBA DB FWB BOT Annualised Increase Average: 12.1% Islamic Banks Annual Increase Deposits In percentages Rupees in millions Meezan , , ,799 Islami , , ,661 DIB 15.5 (5.5) 149, , ,743 Albaraka (6.9) , ,843 71,644 MCBIB ,691 14,279 9, ,132, , ,297 Annualised Increase ( ) In percentages Meezan 19.5 Islami 8.3 DIB 4.5 Albaraka 17.3 MCBIB Banking Results 2017

40 Market Share of Customer Deposits In percentages Rupees in millions HBL ,932,631 1,834,879 NBP ,454,124 1,428,941 UBL ,288,270 1,172,428 MCB , ,970 ABL , ,991 Meezan , ,741 BAH , ,008 BAF , ,712 Askari , ,749 HMB , ,038 SCB , ,245 Faysal , ,583 Less than 3% ,603,876 1,423, ,781,172 10,682,151 * Deposits from financial institutions have been excluded to analyse deposits from customer. HMB 4.2% SCB 3.2% Faysal 3.0% Less than 3% 13.6% HBL 16.4% Askari 4.4% NBP 12.3% BAF 5.3% BAH 5.7% Meezan 5.7% ABL 7.0% MCB 8.3% UBL 10.9% Banking Results

41 Banks with less than 3% market share In percentages Rupees in millions JS , ,255 Soneri , ,337 BOK , ,987 Islami , ,983 DIB , ,766 Summit , ,928 Sindh , ,438 Silk ,444 79,555 Albaraka ,300 94,357 Citibank ,177 73,804 ICBC ,616 52,758 SAMBA ,635 44,767 DB ,207 14,084 FWB ,260 13,707 BOT ,428 5, ,603,876 1,423,866 * Deposits from financial institutions have been excluded to analyse deposits from customers. ICBC 0.5% SAMBA 0.4% DB 0.2% FWB 0.1% BOT 0.1% Citibank 0.7% JS 2.1% Albaraka 0.8% Silk 0.8% Soneri 1.8% Sindh 1.1% Summit 1.1% DIB 1.2% Islami 1.3% BOK 1.4% 36 Banking Results 2017

42 Definitions For consistency in our analysis, following parameters have been used in calculations: Average Advances Average Assets Average Deposits Average Equity Annual Increase Annualised Increase The average of opening and closing gross advances at two year ends. The average of opening and closing total assets at two year ends. The average of opening and closing deposits at two year ends. The average of opening and closing equity at two year ends. The percentage change compared to the previous year. The percentage change over the last two years on annualised basis, i.e. Figure (year 2017) - 1 Figure (year 2015) Cost of Funds CASA Equity Gross Advances Impairment Cover Interest Bearing Assets Interest Bearing Liabilities Market Capitalization Non-funded Income Mark-up / return / interest expense. Current and saving customer deposits to total customer deposits. Equity includes share capital / head office capital account, reserves, unappropriated profit / accumulated loss, noncontrolling interest and surplus / deficit on revaluation of assets. Loans, cash credits, overdrafts, ijarahs, etc. and local & foreign bills discounted & purchased before provisions. Number of times impairment charge on loans and advances and investments is covered by net profits before charging impairment. Interest bearing assets means: cash and balances with treasury banks, balances with other banks, lending to financial institutions, fixed income investments and advances (excluding non-performing assets). Interest bearing liabilities means: borrowings, deposits and other accounts, sub-ordinated loans and liabilities against assets subject to finance lease. Product of total outstanding number of ordinary shares and market price as at year end. Fee, commission & brokerage, rent, income from dealing in foreign currencies, profit on sale of fixed & other assets and other non-fund receipts. Banking Results

43 Non-markup / Non-Interest Income / Other Income Net Interest Margin Net Provisions Other Comprehensive Income Operating Cost Operating Fixed Assets Other Assets Other Liabilities Remuneration per Executive Return on Average Assets Return on Average Equity Spread Staff Cost Taxation Fee, commission and brokerage income, dividend income, income from dealing in foreign currencies, gain on sale of securities, unrealised profit on revaluation of investments classified as held for trading, share of profit from joint venture and associate and other income. Mark-up / return / interest earned (before provisions) as a percentage of interest bearing assets less mark-up / return / interest expensed as a percentage of interest bearing liabilities. Charge & reversal of provision against non-performing advances, against off balance sheet obligations, for diminution in value of investments, bad debts directly written-off and recoveries of previously written-off debts. Includes effect of translation of net investment in foreign branches, gains and losses on re-measurement of actuarial liability, surplus / (deficit) on revaluation of fixed assets and investments, surplus / (deficit) arising on revaluation of assets of associated undertaking i.e. all form of other comprehensive income including those taken below equity in accordance with the requirements of the repealed Companies Ordinance 1984 / SBP directives. All expenses charged to arrive at profit before tax excluding cost of funds and provisions. Operating fixed assets include intangible assets. Other assets include deferred tax assets. Other liabilities include deferred tax liabilities and liabilities against assets subject to finance lease. Remuneration of executives divided by number of executives. Profit after tax as a percentage of average total assets. Profit after tax as a percentage of average equity. Difference between mark-up / return / interest earned on loans and advances as a percentage of average loans and advances (net of provision), at two year ends, and mark-up / return / interest expense of deposits as a percentage of average deposits, at two year ends. Salaries, allowances, etc., staff retirement benefits, cost of outsourced staff and cost of redundancy / voluntary retirement / severance excluding Workers Welfare Fund. Charge for current (including prior) and deferred taxation in the profit and loss account. 38 Banking Results 2017

44 Glossary In this report, the following 28 commercial banks have been analysed. S.No. Name of Bank Legends 1 Albaraka Bank (Pakistan) Limited Albaraka 2 Allied Bank Limited ABL 3 Askari Bank Limited Askari 4 Bank Alfalah Limited BAF 5 Bank Al-Habib Limited BAH 6 BankIslami Pakistan Limited Islami 7 Citibank N.A., Pakistan Branches Citibank 8 Deutsche Bank AG, Pakistan Operations DB 9 Dubai Islamic Bank (Pakistan) Limited DIB 10 Faysal Bank Limited Faysal 11 First Women Bank Limited FWB 12 Habib Bank Limited HBL 13 Habib Metropolitan Bank Limited HMB 14 Industrial and Commercial Bank of China - Pakistan Branches ICBC 15 JS Bank Limited JS 16 MCB Bank Limited MCB 17 MCB Islamic Bank Limited MCBIB 18 Meezan Bank Limited Meezan 19 National Bank of Pakistan NBP 20 Samba Bank Limited SAMBA 21 Silkbank Limited Silk 22 Sindh Bank Limited Sindh 23 Soneri Bank Limited Soneri 24 Standard Chartered Bank (Pakistan) Limited SCB 25 Summit Bank Limited Summit 26 The Bank of Khyber BOK 27 The Bank of Tokyo Mitsubishi UFJ, Limited Karachi Branch BOT 28 United Bank Limited UBL *Banks have been listed alphabetically, by their full names. Islamic Banks have been presented in Italics. Banking Results

45 40 Banking Results 2017

46 Credit Ratings Banks Rating Agency Credit Rating Assigned Short Term Long Term Habib Bank Limited JCR-VIS A-1+ AAA National Bank of Pakistan PACRA A1+ AAA JCR-VIS A1+ AAA United Bank Limited JCR-VIS A-1+ AAA MCB Bank Limited PACRA A1+ AAA Allied Bank Limited PACRA A1+ AA+ Bank Alfalah Limited PACRA A1+ AA+ JCR-VIS A-1+ AA+ Bank Al-Habib Limited PACRA A1+ AA+ Meezan Bank Limited JCR-VIS A1+ AA Askari Bank Limited PACRA A1+ AA+ Habib Metropolitan Bank Limited PACRA A1+ AA+ Standard Chartered Bank (Pakistan) Limited PACRA A1+ AAA Faysal Bank Limited JCR-VIS A1+ AA Industrial & Commercial Bank of China Limited (Pakistan Branches) Moody s P-1 A1 JS Bank Limited PACRA A1+ AA- Soneri Bank Limited PACRA A1+ AA- The Bank of Khyber PACRA A1 A JCR-VIS A-1 A Summit Bank Limited JCR-VIS A-1 A- BankIslami Pakistan Limited PACRA A1 A+ Sindh Bank Limited JCR-VIS A-1+ AA Dubai Islamic Bank (Pakistan) Limited JCR-VIS A-1 AA- Silkbank Limited JCR-VIS A-2 A- Albaraka Bank (Pakistan) Limited PACRA A1 A JCR-VIS A1 A+ Citibank N.A. Pakistan Branches Moody s P-1 A1 Samba Bank Limited JCR-VIS A-1 AA MCB Islamic Bank Limited PACRA A-1 A Banking Results

47 Banks Deutsche Bank AG, Pakistan Operations Rating Agency Standard & Poor's Credit Rating Assigned Short Term Long Term A-2 A- Moody s P-2 Baa2 Fitch F2 BBB+ First Women Bank Limited PACRA A2 A- The Bank of Tokyo Mitsubishi UFJ, Limited Karachi Branch Standard & Poor's A-1 A+ Moody s P-1 A1 Fitch F1 A 42 Banking Results 2017

48 Number of Branches (including sub-branches) Banks Number of Branches * Habib Bank Limited 1,703 1,677 National Bank of Pakistan 1,519 1,469 United Bank Limited 1,379 1,359 MCB Bank Limited 1,444 1,238 Allied Bank Limited 1,250 1,148 Bank Alfalah Limited Bank Al-Habib Limited Meezan Bank Limited Askari Bank Limited Habib Metropolitan Bank Limited Standard Chartered Bank (Pakistan) Limited Faysal Bank Limited Industrial and Commercial Bank of China (Pakistan Branches) 3 3 JS Bank Limited Soneri Bank Limited The Bank of Khyber Summit Bank Limited BankIslami Pakistan Limited Sindh Bank Limited Dubai Islamic Bank (Pakistan) Limited Silkbank Limited Albaraka Bank (Pakistan) Limited Citibank N.A. Pakistan Branches 3 3 Samba Bank Limited MCB Islamic Bank Limited Deutsche Bank AG, Pakistan Operations 3 3 First Women Bank Limited The Bank of Tokyo Mitsubishi UFJ, Limited Karachi Branch 1 1 *As at 31 December Banking Results