Banking Results 2017 Commercial Banks Operating in Pakistan

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

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 2016. 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

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

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 14,919 2017 2016 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. 23.717 billion by HBL. Islamic banks profit reduced slightly to Rs. 12 billion compared to Rs. 13 billion last year. Rupees in billions 350 300 250 200 Profit before tax - Rupees in billions 303 259 2017 2016 Banking Results 2017 1

Spread The overall average spread of the industry for last five years as disclosed in SBP statistical bulletin is as follows: Average Spread - 2017 2017 2016 2015 2014 2013 4.03 7.25 In percentages Spread Deposit Weighted average lending rate 7.9 8.5 9.6 11.1 11.3 Lending 3.22 Weighted average deposit rate 2.9 3.3 4.1 5.0 5.1 in percentages Banking spread 5.0 5.2 5.5 6.1 6.2 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 2016. In percentages 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 Banks with higher spread than average 8.00 5.69 5.62 5.02 5.25 4.79 4.99 4.39 4.65 4.79 4.07 4.05 4.03 1.00 0.00 Non-funded income To increase profitability, Banks have put more focus on value added services. Nonfunded income increased by 14.74% from Rs. 124.39 billion to Rs. 142.73 billion. Rupees in billions 145 140 135 130 125 120 Non Funded Income - Rupees in billions 143 124 115 2017 2016 2 Banking Results 2017

Operating cost - Rupees in billions Operating cost Banks operating cost increased by 10.28% (2016: 8.70%). Rupees in billions 390 380 370 360 350 383 348 340 330 2017 2016 Staff Costs Staff costs increased by 9.51% (2016 9.88%). Rupees in billions 200 195 190 185 180 175 170 165 Staff Costs - Rupees in billions 195 178 2017 2016 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 5,502 2017 2016 160.00% 140.00% 120.00% Banks with high level of growth in advances than average 143.17% In percentages 100.00% 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 2017 3

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 11,328 2017 2016 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

CASA Average CASA decreased to 68.0% (2016: 69.6%). In percentages 100.00% 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 2017 5

6 Banking Results 2017

At a Glance HBL NBP UBL MCB 2017 2016 2017 2016 2017 2016 2017 2016 Ranking By total assets 1 1 2 2 3 3 4 4 By net assets 1 1 2 2 3 3 4 4 By p rofit b efore tax 4 1 2 3 1 2 3 4 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 5.0 4.8 4.4 5.5 3.4 3.7 4.1 4.6 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 1,605 676 558 (Rupees in m illions) Impairment cover - 79.8 - - 15.8 30.4 46.1 66.5 (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 188,815 196,269 179,676 180,139 174,494 163,729 156,543 145,960 (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 5.34 23.23 10.90 10.83 21.39 22.70 19.13 19.82 Market Price 167.09 273.25 48.56 74.89 187.97 238.90 212.32 237.82 Market Capitalization 245,096 400,817 103,312 159,329 230,109 292,457 251,612 264,701 (Rupees in m illions) Banking Results 2017 7

ABL BAF BAH 2017 2016 2017 2016 2017 2016 Ranking By total assets 5 5 6 6 7 7 By net assets 5 5 6 7 8 8 By p rofit b efore tax 5 5 6 7 7 8 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 3.9 3.5 4.8 3.8 3.0 3.0 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 - - - 12.4 - - (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 1,071,044 991,027 919,439 919,548 751,820 (Rupees in millions) Net Assets 108,050 101,815 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 11.29 12.84 5.30 4.93 7.79 7.33 Market Price 84.98 119.21 42.50 37.96 58.36 58.99 Market Capitalization 97,308 136,504 68,322 60,554 64,863 65,563 (Rupees in m illions) 8 Banking Results 2017

Meezan Askari HMB SCB 2017 2016 2017 2016 2017 2016 2017 2016 Ranking By total assets 8 8 9 9 10 10 11 11 By net assets 11 11 12 12 9 9 7 6 By p rofit b efore tax 9 9 11 11 10 10 8 6 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 3.7 3.7 3.4 3.3 2.8 2.2 5.7 6.3 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) 74 845 291 (1,141) (Rupees in m illions) Impairment cover 8.5 - - - 129.3 13.3 47.3 - (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 785,967 663,268 656,956 619,673 651,125 526,443 513,549 474,752 (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 5.46 6.05 4.18 4.14 5.41 5.85 2.13 2.48 Market Price 67.10 68.11 19.31 24.95 34.50 37.00 23.85 25.25 Market Capitalization 71,321 68,296 24,336 31,443 36,150 38,770 92,337 97,758 (Rupees in m illions) Banking Results 2017 9

Faysal ICBC JS Soneri 2017 2016 2017 2016 2017 2016 2017 2016 Ranking By total assets 12 12 13 15 14 14 15 13 By net assets 10 10 15 24 13 13 14 14 By p rofit b efore tax 12 12 13 18 19 14 15 16 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 4.7 4.2 3.7 2.9 2.7 3.4 2.8 2.5 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) 564 82-288 276 66 24 (Rupees in m illions) Impairment cover - 12.8 65.7-7.5 14.9 43.6 127.1 (Times) Non Performing Advances 10.7% 13.1% - - 1.7% 3.4% 5.9% 7.8% to Gross Loans Total Assets 488,027 444,465 391,202 243,979 390,954 268,826 322,134 278,521 (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 3.42 3.26 - - 0.79 2.00 1.49 1.70 Market Price 21.26 21.78 - - 7.52 10.81 13.40 17.65 Market Capitalization 28,058 26,131 - - 8,065 11,593 14,773 19,458 (Rupees in m illions) 10 Banking Results 2017

BOK Summit Islami Sindh 2017 2016 2017 2016 2017 2016 2017 2016 Ranking By total assets 16 17 17 16 18 18 19 20 By net assets 17 15 22 18 19 17 16 16 By p rofit b efore tax 16 15 27 27 23 21 18 17 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 2.4 1.4 3.8 3.7 4.0 4.2 4.0 4.0 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 - 6.1 - - - - 9.7 2.5 (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 245,132 206,400 233,027 214,986 217,234 181,994 204,525 146,206 (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 1.79 2.02 (0.50) (1.01) 1.66 0.64 1.28 1.40 Market Price 13.50 16.55 2.77 4.40 9.29 13.36 - - Market Capitalization 13,503 16,554 7,308 7,826 9,364 13,466 - - (Rupees in millions) Banking Results 2017 11

DIB Silk Albaraka Citibank 2017 2016 2017 2016 2017 2016 2017 2016 Ranking By total assets 20 19 21 21 22 22 23 23 By net assets 18 20 20 21 23 22 24 23 By profit before tax 17 19 20 20 26 26 14 13 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 5.3 4.3 8.0 7.7 5.0 4.0 1.9 3.1 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) 186 129 289 (49) 98 (164) (68) (85) (Rupees in millions) Impairment cover 14.8 11.7 5.8 - - - - - (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 182,272 152,133 166,855 135,034 120,661 126,799 117,176 112,050 (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 1.41 1.22 0.13 0.09 (0.28) (0.17) - - Market Price - - 1.58 1.85 - - - - Market Capitalization - - 14,349 14,430 - - - - (Rupees in millions) 12 Banking Results 2017

Samba DB FWB BOT 2017 2016 2017 2016 2017 2016 2017 2016 Ranking By total assets 24 24 25 25 26 26 27 27 By net assets 21 19 25 25 27 27 26 26 By profit before tax 22 22 21 23 25 25 24 24 Profit / (loss) before tax 931 926 1,142 739 (116) 4 225 29 (Rupees in millions) Net Interest Margin 1.9% 1.7% 2.2% 2.0% 2.1% 2.5% 1.1% 0.2% Spread 1.7 1.2 5.6 5.5 4.8 5.0 4.0 2.3 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) 99 265 2 (13) 12 (18) - - (Rupees in millions) Impairment cover 10.4 4.5 670.9 - - - - - (Times) Non Performing Advances 5.5% 7.7% 1.7% 2.9% 16.5% 20.7% - - to Gross Loans Total Assets 117,151 101,414 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 0.73 0.54 - - (0.61) 0.03 - - Market Price 6.96 7.26 - - - - - - Market Capitalization 7,017 7,320 - - - - - - (Rupees in millions) Banking Results 2017 13

Islamic Banks Meezan Islami DIB Albaraka MCBIB 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 Ranking By total assets 1 1 2 2 3 3 4 4 5 5 By net assets 1 1 3 2 2 3 4 4 5 5 By profit before tax 1 1 3 3 2 2 5 5 4 4 Profit / (loss) before tax 9,933 10,517 271 1,037 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 3.7 3.7 4.0 4.2 5.3 4.3 5.0 4.0 3.7 3.6 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) 186 129 98 (164) (0.1) (94) (Rupees in millions) Impairment cover 8.5 - - - 14.8 11.7 - - - - (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 785,967 663,268 217,234 181,994 182,272 152,133 120,661 126,799 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 5.46 6.05 1.66 0.64 1.41 1.22 (0.28) (0.17) (0.26) 0.08 Market Price 67.10 68.11 9.29 13.36 - - - - - - Market Capitalization 71,321 68,296 9,364 13,466 - - - - - - (Rupees in millions) 14 Banking Results 2017

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 33,900 851,502 62,795 74,251 2,684,102 NBP 187,073 1,296,537 26,916 740,345 33,822 91,323 2,376,016 UBL 196,668 1,124,920 35,894 642,507 50,386 54,986 2,105,361 MCB 116,812 660,071 5,274 500,966 42,563 47,744 1,373,430 ABL 86,005 699,324 8,694 372,081 48,356 32,863 1,247,323 BAF 75,129 401,742 48,896 400,660 17,708 46,892 991,027 BAH 64,829 476,471-339,833 22,567 15,848 919,548 Meezan 69,496 123,161 147,229 419,929 11,995 14,157 785,967 Askari 47,433 314,957 2,250 258,693 10,729 22,894 656,956 HMB 43,517 395,266 10,915 181,790 3,418 16,219 651,125 SCB 35,865 272,488 8,068 137,655 34,130 25,343 513,549 Faysal 39,735 179,706 9,010 231,532 12,940 15,104 488,027 ICBC 17,047 235,089 118,285 8,164 581 12,036 391,202 JS 18,384 170,289 3,116 184,161 7,590 7,414 390,954 Soneri 20,582 117,429 6,544 164,293 6,581 6,705 322,134 BOK 12,173 140,474 1,529 83,369 2,370 5,217 245,132 Summit 15,997 95,024 10,671 85,523 12,714 13,098 233,027 Islami 12,934 42,364 21,372 119,007 9,147 12,410 217,234 Sindh 13,124 113,510 5,331 65,052 1,663 5,845 204,525 DIB 11,597 41,474 4,860 119,523 1,704 3,114 182,272 Silk 8,632 38,266 8,621 85,851 4,177 21,308 166,855 Albaraka 11,848 19,393 5,095 71,204 4,082 9,039 120,661 Citibank 6,998 57,091 23,931 24,484 541 4,131 117,176 SAMBA 4,015 62,918 5,193 40,182 1,247 3,596 117,151 DB 6,393-19,707 5,709 272 1,129 33,210 FWB 1,501 13,588-8,876 323 541 24,829 BOT 3,771 947 7,652 2,198 32 93 14,693 1,414,404 8,467,307 578,953 6,145,089 404,433 563,300 17,573,486 Banking Results 2017 15

Liabilities and Equity Bank Bills payable Borrowings Deposits Subordinated loans Other liabilities Equity Total Rupees in millions HBL 33,752 397,803 1,998,935 9,994 54,803 188,815 2,684,102 NBP 13,195 360,106 1,727,059-95,980 179,676 2,376,016 UBL 13,393 517,082 1,366,158-34,234 174,494 2,105,361 MCB 22,995 140,462 1,001,146 3,893 48,391 156,543 1,373,430 ABL 7,835 223,556 883,702-24,180 108,050 1,247,323 BAF 12,462 206,567 653,346 4,991 46,831 66,830 991,027 BAH 19,663 133,500 692,534 10,998 16,575 46,278 919,548 Meezan 11,168 36,813 673,180 7,000 19,396 38,410 785,967 Askari 10,769 71,587 525,805 4,993 11,257 32,545 656,956 HMB 9,384 67,323 517,685-12,871 43,862 651,125 SCB 18,958 26,030 377,576-28,048 62,937 513,549 Faysal 7,304 54,789 373,081-13,621 39,232 488,027 ICBC 4,574 303,725 57,698-8,365 16,840 391,202 JS 3,824 64,557 288,365 4,999 9,541 19,668 390,954 Soneri 4,895 64,584 227,348 2,998 3,804 18,505 322,134 BOK 1,131 64,190 159,247-5,166 15,398 245,132 Summit 3,065 67,308 145,607 1,496 4,494 11,057 233,027 Islami 2,989 15,570 179,002-5,445 14,228 217,234 Sindh 905 50,971 134,204-2,327 16,118 204,525 DIB 3,678 5,256 149,295 4,000 5,131 14,912 182,272 Silk 3,193 35,582 110,278 2,000 2,621 13,181 166,855 Albaraka 1,690 3,209 98,590 2,643 3,767 10,762 120,661 Citibank 1,836 15,460 78,818-11,859 9,203 117,176 SAMBA 687 46,201 54,901-2,654 12,708 117,151 DB 933 16 23,212-2,096 6,953 33,210 FWB 530 3,904 16,260-401 3,734 24,829 BOT 51 814 9,432-233 4,163 14,693 214,859 2,976,965 12,522,464 60,005 474,091 1,325,102 17,573,486 16 Banking Results 2017

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 8,182 174 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 43,540 676 18,646 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 14,252 74 5,903 20,081 10,570 9,511 3,646 5,865 (1,625) SCB 17,280 291 8,200 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 6,352 82 571 6,841 1,509 5,332 2,013 3,319 464 JS 6,409 288 5,046 11,167 9,305 1,863 796 1,067 (1,648) Soneri 6,659 66 3,269 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 6,193 271 (1,419) 1,690 (637) Sindh 5,384 256 1,328 6,456 4,243 2,213 936 1,277 (719) DIB 6,600 186 1,903 8,317 5,753 2,564 962 1,602 (257) Silk 5,486 289 2,943 8,141 6,754 1,387 251 1,136 (53) Albaraka 3,640 98 968 4,509 5,040 (531) (142) (389) (238) Citibank 2,940 (68) 2,839 5,848 2,093 3,755 1,521 2,234 (71) SAMBA 2,359 99 715 2,975 2,044 931 192 739 (350) DB 759 2 1,390 2,147 1,005 1,142 430 712 703 FWB 675 12 122 784 900 (116) 122 (238) (10) BOT 165-311 476 250 225 91 134 0.3 468,822 371 197,317 642,063 383,430 258,630 103,543 155,087 (47,460) Banking Results 2017 17

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 69,496 123,161 147,229 419,929 11,995 14,157 785,967 Islami 12,934 42,364 21,372 119,007 9,147 12,410 217,234 DIB 11,597 41,474 4,860 119,523 1,704 3,114 182,272 Albaraka 11,848 19,393 5,095 71,204 4,082 9,039 120,661 MCBIB 6,094 9,186 1,400 31,473 2,623 995 51,771 111,969 235,578 179,956 761,136 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 36,813 673,180 7,000 19,396 38,410 785,967 Islami 2,989 15,570 179,002-5,445 14,228 217,234 DIB 3,678 5,256 149,295 4,000 5,131 14,912 182,272 Albaraka 1,690 3,209 98,590 2,643 3,767 10,762 120,661 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 6,193 271 (1,419) 1,690 (637) DIB 6,600 186 1,903 8,317 5,753 2,564 962 1,602 (257) Albaraka 3,640 98 968 4,509 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

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 7,476 104,616 1,615 84,298-1,089 199,094 BAF 10,538 37,914 30,891 55,605 2,075 2,351 139,374 Faysal 7,830 25,400-45,601 1,685 3,573 84,089 UBL 11,980 25,402 3,694 22,111 300 422 63,909 BOK 3,605 9,680 1,529 41,472 338 797 57,421 SCB 2,726 6,233 4,788 42,573 40 501 56,861 HMB 2,540 28,341 7,568 13,872 107 1,379 53,807 MCB 6,094 9,186 1,400 31,473 2,623 995 51,771 BAH 3,511 11,334-34,844 249 538 50,476 Askari 4,159 6,734 750 34,396 654 1,022 47,715 NBP 5,829 17,855-18,946 195 1,149 43,974 Summit 1,729 5,861 5,936 10,780 151 521 24,978 Silk 1,044 1,670-17,527 213 814 21,268 ABL 1,125 8,304 1,915 4,662 959 385 17,350 Soneri 1,029 4,446 4,109 4,584 194 1,219 15,581 Sindh 562 1,453 2,990 2,291 99 63 7,458 71,777 304,429 67,185 465,035 9,882 16,818 935,126 Liabilities and Equity Bank Bills payable Due to financial institutions Deposits Other liabilities Equity Total Rupees in millions HBL 7 24,798 163,449 1,606 9,234 199,094 BAF 2,686 3,794 114,672 6,073 12,149 139,374 Faysal 1,329 4,450 70,229 3,047 5,034 84,089 UBL 401 1,501 59,776 389 1,842 63,909 BOK 483 550 36,516 15,227 4,645 57,421 SCB 163 3,724 40,274 7,337 5,363 56,861 HMB 658 1,851 48,306 543 2,449 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 126-36,908 5,377 1,563 43,974 Summit 213 250 22,549 400 1,566 24,978 Silk 609-14,257 3,809 2,593 21,268 ABL 124 500 15,547 202 977 17,350 Soneri 46 98 14,012 198 1,227 15,581 Sindh 44-6,976 87 351 7,458 8,010 56,154 751,680 51,780 67,502 935,126 Banking Results 2017 19

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 5,183 367 6 (85) 693 4,032 BAF 4,649-76 956 2,939 2,590 Faysal 2,855-19 333 2,577 592 UBL 1,128 198 3 117 798 246 BOK 1,696 - (101) 157 1,321 633 SCB 2,458 - (93) 803 1,779 1,575 HMB 677-14 141 521 283 MCB 1,055 - (0.1) 439 1,845 (351) BAH 1,237-29 181 966 423 Askari 1,374-90 153 1,673 (236) NBP 1,154 86-292 1,588 (228) Summit 583-7 79 450 205 Silk 784 - - 47 424 407 ABL 336 - - 42 760 (382) Soneri 3 50 - (3 0) 3 9 258 16 1 Sindh 125 - - 21 173 (27) 25,644 651 20 3,715 18,765 9,923 20 Banking Results 2017

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 1.24 1.40 1.69 1.94 2.19 2.32 2.45 2.45 2.82 2.72 2.89 2.84 3.15 3.03 3.01 3.35 3.44 3.32 3.48 4.25 4.05 3.96 4.00 4.22 3.79 3.71 3.67 3.71 3.72 3.44 3.67 4.03 3.95 3.82 3.92 4.07 4.25 4.39 4.65 4.56 4.79 4.99 4.79 4.99 5.02 4.77 5.25 5.62 5.51 5.49 5.69 6.32 8.00 7.74 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 2017 2016 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 21

Average Spread of Islamic Banks as per report Average spread of Islamic banks in 2017 was 4.3% as compared to 4.0% in 2016. In percentages 3.7 MCBIB 3.6 Albaraka 5.0 4.0 DIB 5.3 4.3 Islami 4.0 4.2 Meezan 3.7 3.7 0.0 1.0 2.0 3.0 4.0 5.0 6.0 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 2017 2016 22 Banking Results 2017

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 2017 2016 2017 2016 2017 2016 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 13,330 977 900 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 10,794 821 790 Meezan 8,816 7,824 10,030 9,493 879 824 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 6,395 774 802 ICBC 1,035 685 113 100 9,157 6,850 JS 4,176 3,523 5,364 4,509 779 781 Soneri 2,796 2,674 4,021 3,725 695 718 BOK 2,326 1,890 1,405 1,366 1,655 1,384 Summit 2,433 2,323 2,913 3,089 835 752 Islami 2,796 2,712 4,227 4,031 661 673 Sindh 2,079 1,843 2,320 2,193 896 840 DIB 2,285 2,105 2,612 2,828 875 744 Silk 3,103 2,694 3,711 3,367 836 800 Albaraka 2,080 1,423 2,555 2,745 814 518 Citibank 680 639 251 246 2,708 2,598 SAMBA 1,119 924 747 680 1,498 1,359 DB 451 460 119 104 3,794 4,423 FWB 516 487 531 556 972 876 BOT 91 84 52 52 1,753 1,615 194,785 177,878 162,009 152,849 Islamic Banks Staff cost Number of staff Cost per staff 2017 2016 2017 2016 2017 2016 Rupees in millions Numbers Rupees in thousands Meezan 8,816 7,824 10,030 9,493 879 824 Islami 2,796 2,712 4,227 4,031 661 673 Staff cost includes salaries, allowances and staff retirement benefits DIB 2,285 2,105 2,612 2,828 875 744 Albaraka 2,080 1,423 2,555 2,745 814 518 MCBIB 1,010 649 950 690 1,063 941 16,987 14,713 20,374 19,787 Banking Results 2017 23

Remuneration of Executives CEO Remuneration Remuneration of ExecutivesNumber of Executives 2017 2016 2017 2016 2017 2016 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 * 216,233 144,167 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 * 119,469 101,681 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 2,910,467 772 757 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 1,839,778 688 633 ICBC 34,786 49,828 768,607 744,684 86 74 JS 41,600 39,500 2,961,718 2,177,549 1,558 1,118 Soneri * 60,413 68,358 1,708,950 1,417,164 965 738 BOK 21,892 20,089 415,280 254,466 65 67 Summit 35,391 34,373 1,197,518 1,064,674 489 437 Islami 37,506 36,386 974,809 811,320 560 478 Sindh 31,641 24,529 1,019,219 828,943 393 334 DIB 76,970 72,103 1,053,400 958,586 395 370 Silk 94,526 78,954 1,577,765 1,300,276 540 453 Albaraka 47,907 55,858 967,994 635,063 481 399 Citibank 79,708 71,452 474,183 470,152 125 134 SAMBA 83,302 72,276 703,019 616,632 233 204 DB 83,744 56,360 279,608 283,505 63 69 FWB 26,715 26,187 231,779 216,757 117 101 BOT 24,887 17,386 30,166 35,860 21 18 1,832,144 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 2017 2016 2017 2016 2017 2016 Rupees in thousands Numbers Meezan * 73,854 65,911 2,780,577 2,442,529 1,270 1,089 Islami 37,506 36,386 974,809 811,320 560 478 DIB 76,970 72,103 1,053,400 958,586 395 370 Albaraka 47,907 55,858 967,994 635,063 481 399 MCBIB 47,946 43,960 545,695 356,177 239 171 284,183 274,218 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

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: 2017 2016 In percentages All Banks 20.3% 13.3% Islamic Banks 33.0% 26.6% Growth in Loans and Advances Annual increase Gross Advances 2016-17 2015-16 2017 2016 2015 In percentages Rupees in millions HBL 12.7 15.7 921,008 817,250 706,563 NBP 9.5 12.8 858,208 783,555 694,615 UBL 18.5 9.1 686,239 579,159 530,734 MCB 42.3 14.6 546,672 384,170 335,276 ABL 11.4 2.4 388,794 349,056 340,812 BAF 5.4 13.0 417,188 395,869 350,353 BAH 29.0 24.8 347,466 269,268 215,702 Meezan 34.1 48.1 428,734 319,617 215,776 Askari 8.5 14.8 284,340 262,123 228,419 HMB 24.0 6.5 198,217 159,882 150,076 SCB 17.7 2.5 157,280 133,631 130,370 Faysal 11.3 11.8 255,827 229,826 205,624 ICBC 35.3 (12.9) 8,247 6,097 6,999 JS 93.7 21.5 186,900 96,472 79,402 Soneri 29.2 10.9 172,772 133,753 120,617 BOK 143.2 (10.2) 87,673 36,054 40,137 Summit 5.6 13.4 99,532 94,256 83,099 Islami 45.6 9.0 130,488 89,637 82,213 Sindh 23.9 20.0 69,454 56,049 46,708 DIB 26.9 (10.3) 121,481 95,714 106,651 Silk 30.0 3.4 90,138 69,312 67,045 Albaraka 6.2 40.6 75,492 71,090 50,548 Citibank 12.3 (0.7) 27,282 24,288 24,460 SAMBA 37.2 18.0 42,503 30,988 26,260 DB 75.2 (50.2) 5,814 3,318 6,667 FWB 6.9 2.4 10,129 9,479 9,253 BOT 18.7 (28.5) 2,198 1,852 2,589 20.3 13.3 6,620,076 5,501,765 4,856,968 Banking Results 2017 25

Annualised Increase (2015 17) In percentages (10.0) -00 10.0 20.0 30.0 40.0 50.0 60.0 (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 5.6 4.6 6.8 9.1 6.7 11.2 11.6 13.7 9.8 11.5 8.5 9.4 14.2 14.9 15.9 19.7 21.9 22.2 27.7 26.9 26.0 27.2 41.0 47.8 53.4 Annualised Increase Average: 16.7% Islamic Banks Annual increase Gross Advances 2016-17 2015-16 2017 2016 2015 In percentages Rupees in millions Meezan 34.1 48.1 428,734 319,617 215,776 Islami 45.6 9.0 130,488 89,637 82,213 DIB 26.9 (10.3) 121,481 95,714 106,651 Albaraka 6.2 40.6 75,492 71,090 50,548 MCBIB 94.6 28.7 31,474 16,174 12,569 33.0 26.6 787,669 592,232 467,757 26 Banking Results 2017

Annualised Increase (2015 17) In percentages Meezan 41.0 Islami 26.0 DIB 6.7 Albaraka 22.2 MCBIB 58.2 Market Share of Loans and Advances 2017 2016 2017 2016 In percentages Rupees in millions HBL 13.9 14.9 921,008 817,250 NBP 13.0 14.2 858,208 783,555 UBL 10.4 10.5 686,239 579,159 MCB 8.3 7.0 546,672 384,170 Meezan 6.5 5.8 428,734 319,617 BAF 6.3 7.2 417,188 395,869 ABL 5.9 6.3 388,794 349,056 BAH 5.2 4.9 347,466 269,268 Askari 4.3 4.8 284,340 262,123 Faysal 3.9 4.2 255,827 229,826 HMB 3.0 2.9 198,217 159,882 Less than 3% 19.3 17.3 1,287,383 951,990 100 100 6,620,076 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 2017 27

Banks with less than 3% market share 2017 2016 2017 2016 In percentages Rupees in millions JS 2.8 1.8 186,900 96,472 Soneri 2.6 2.4 172,772 133,753 SCB 2.4 2.4 157,280 133,631 Islami 2.0 1.6 130,488 89,637 DIB 1.8 1.7 121,481 95,714 Summit 1.5 1.7 99,532 94,256 Silk 1.4 1.3 90,138 69,312 BOK 1.3 0.7 87,673 36,054 Albaraka 1.1 1.3 75,492 71,090 Sindh 1.0 1.0 69,454 56,049 SAMBA 0.6 0.6 42,503 30,988 Citibank 0.4 0.4 27,282 24,288 FWB 0.2 0.2 10,129 9,479 ICBC 0.1 0.1 8,247 6,097 DB 0.1 0.1 5,814 3,318 BOT 0.0 0.0 2,198 1,852 19.3 17.3 1,287,383 951,990 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

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 2017 2016 2015 2017 2016 2015 Rupees in millions HBL 884,803 790,394 683,571 1,998,935 1,885,959 1,634,944 NBP 839,614 770,034 686,778 1,727,059 1,657,132 1,431,535 UBL 649,540 552,482 509,072 1,366,158 1,245,792 1,119,953 MCB 507,833 365,089 318,951 1,001,146 795,690 706,240 ABL 364,608 331,555 325,201 883,702 805,090 734,546 BAF 389,389 374,200 332,923 653,346 640,854 640,137 BAH 304,929 243,435 192,589 692,534 584,166 516,198 Meezan 407,592 302,775 202,177 673,180 564,000 471,799 Askari 267,637 249,245 218,092 525,805 472,803 433,130 HMB 169,087 137,516 127,359 517,685 430,444 403,209 SCB 139,456 119,811 114,483 377,576 365,562 327,238 Faysal 237,516 214,251 189,816 373,081 340,306 292,130 ICBC 8,247 6,097 6,999 57,698 52,779 26,949 JS 175,930 89,732 74,156 288,365 225,005 140,355 Soneri 126,379 124,705 110,998 227,348 209,925 185,222 BOK 85,362 34,342 38,545 159,247 157,020 117,292 Summit 92,466 87,805 77,801 145,607 142,736 119,742 Islami 124,803 85,071 81,174 179,002 153,826 152,661 Sindh 68,317 54,967 45,136 134,204 118,843 83,921 DIB 116,225 92,020 102,099 149,295 129,265 136,743 Silk 88,632 67,679 64,946 110,278 86,787 81,098 Albaraka 72,283 67,867 48,483 98,590 105,843 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 2017 29

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 13.0 16.4 24.5 26.6 27.8 42.8 64.5 64.2 38.3 64.5 59.2 33.5 35.6 68.6 65.6 48.7 49.4 63.1 54.2 62.5 63.1 37.8 57.4 59.6 51.7 44.9 63.3 63.9 34.9 33.8 32.3 31.8 51.8 51.6 57.4 48.8 43.0 39.6 59.0 55.2 41.2 42.7 48.6 45.5 46.0 44.9 47.6 47.2 43.1 41.9 74.8 73.0 79.3 79.0 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 2017 2016 30 Banking Results 2017

Islamic Banks Advances* Deposits 2017 2016 2015 2017 2016 2015 Rupees in millions Meezan 407,592 302,775 202,177 673,180 564,000 471,799 Islami 124,803 85,071 81,174 179,002 153,826 152,661 DIB 116,225 92,020 102,099 149,295 129,265 136,743 Albaraka 72,283 67,867 48,483 98,590 105,843 71,644 MCBIB 23,547 13,388 11,938 32,691 14,279 9,450 744,450 561,121 445,871 1,132,758 967,213 842,297 * 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 78.6 68.6 65.6 74.8 73.0 63.1 54.2 57.4 48.8 106.7 0.0 20.0 40.0 60.0 80.0 100.0 120.0 2017 2016 Banking Results 2017 31

32 Banking Results 2017

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 2016. Growth in Deposits Annual Increase Deposits 2016-17 2015-16 2017 2016 2015 In percentages Rupees in millions HBL 6.0 15.4 1,998,935 1,885,959 1,634,944 NBP 4.2 15.8 1,727,059 1,657,132 1,431,535 UBL 9.7 11.2 1,366,158 1,245,792 1,119,953 MCB 25.8 12.7 1,001,146 795,690 706,240 ABL 9.8 9.6 883,702 805,090 734,546 BAF 1.9 0.1 653,346 640,854 640,137 BAH 18.6 13.2 692,534 584,166 516,198 Meezan 19.4 19.5 673,180 564,000 471,799 Askari 11.2 9.2 525,805 472,803 433,130 HMB 20.3 6.8 517,685 430,444 403,209 SCB 3.3 11.7 377,576 365,562 327,238 Faysal 9.6 16.5 373,081 340,306 292,130 ICBC 9.3 95.8 57,698 52,779 26,949 JS 28.2 60.3 288,365 225,005 140,355 Soneri 8.3 13.3 227,348 209,925 185,222 BOK 1.4 33.9 159,247 157,020 117,292 Summit 2.0 19.2 145,607 142,736 119,742 Islami 16.4 0.8 179,002 153,826 152,661 Sindh 12.9 41.6 134,204 118,843 83,921 DIB 15.5 (5.5) 149,295 129,265 136,743 Silk 27.1 7.0 110,278 86,787 81,098 Albaraka (6.9) 47.7 98,590 105,843 71,644 Citibank 5.0 21.6 78,818 75,076 61,743 SAMBA 9.1 29.5 54,901 50,307 38,844 DB 64.7 17.7 23,212 14,092 11,977 FWB 18.6 (9.6) 16,260 13,709 15,163 BOT 83.3 (1.5) 9,432 5,144 5,223 10.5 13.7 12,522,464 11,328,155 9,959,636 Banking Results 2017 33

Annualised Increase (2015 17) In percentages -00 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 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 1.0 3.6 4.5 7.4 10.6 9.8 10.4 8.3 9.7 10.2 13.3 10.8 10.3 13.0 13.0 15.8 16.5 16.6 17.3 19.1 19.5 18.9 26.5 34.4 39.2 46.3 43.3 Annualised Increase Average: 12.1% Islamic Banks Annual Increase Deposits 2016-17 2015-16 2017 2016 2015 In percentages Rupees in millions Meezan 19.4 19.5 673,180 564,000 471,799 Islami 16.4 0.8 179,002 153,826 152,661 DIB 15.5 (5.5) 149,295 129,265 136,743 Albaraka (6.9) 47.7 98,590 105,843 71,644 MCBIB 128.9 51.1 32,691 14,279 9,450 17.1 14.8 1,132,758 967,213 842,297 Annualised Increase (2015 17) In percentages Meezan 19.5 Islami 8.3 DIB 4.5 Albaraka 17.3 MCBIB 86.0 34 Banking Results 2017

Market Share of Customer Deposits 2017 2016 2017 2016 In percentages Rupees in millions HBL 16.4 17.2 1,932,631 1,834,879 NBP 12.3 13.4 1,454,124 1,428,941 UBL 10.9 11.0 1,288,270 1,172,428 MCB 8.3 7.3 974,016 775,970 ABL 7.0 6.9 830,198 735,991 Meezan 5.7 5.2 667,948 559,741 BAH 5.7 5.3 666,999 568,008 BAF 5.3 5.7 618,604 611,712 Askari 4.4 4.4 522,322 466,749 HMB 4.2 3.9 493,632 416,038 SCB 3.2 3.4 374,305 363,245 Faysal 3.0 3.0 354,247 324,583 Less than 3% 13.6 13.3 1,603,876 1,423,866 100 100 11,781,172 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 2017 35

Banks with less than 3% market share 2017 2016 2017 2016 In percentages Rupees in millions JS 2.1 1.8 253,333 190,255 Soneri 1.8 1.9 210,686 197,337 BOK 1.4 1.5 159,206 156,987 Islami 1.3 1.3 157,879 137,983 DIB 1.2 1.1 136,774 119,766 Summit 1.1 1.2 133,150 132,928 Sindh 1.1 1.0 126,781 110,438 Silk 0.8 0.7 97,444 79,555 Albaraka 0.8 0.9 93,300 94,357 Citibank 0.7 0.7 77,177 73,804 ICBC 0.5 0.5 57,616 52,758 SAMBA 0.4 0.4 51,635 44,767 DB 0.2 0.1 23,207 14,084 FWB 0.1 0.1 16,260 13,707 BOT 0.1 0.1 9,428 5,140 13.6 13.3 1,603,876 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

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 2017 37

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

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 2017 39

40 Banking Results 2017

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 2017 41

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

Number of Branches (including sub-branches) Banks Number of Branches * 2017 2016 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 638 639 Bank Al-Habib Limited 605 518 Meezan Bank Limited 601 571 Askari Bank Limited 516 501 Habib Metropolitan Bank Limited 286 273 Standard Chartered Bank (Pakistan) Limited 93 101 Faysal Bank Limited 405 355 Industrial and Commercial Bank of China (Pakistan Branches) 3 3 JS Bank Limited 322 306 Soneri Bank Limited 290 288 The Bank of Khyber 166 150 Summit Bank Limited 193 192 BankIslami Pakistan Limited 330 321 Sindh Bank Limited 300 260 Dubai Islamic Bank (Pakistan) Limited 200 200 Silkbank Limited 123 88 Albaraka Bank (Pakistan) Limited 188 224 Citibank N.A. Pakistan Branches 3 3 Samba Bank Limited 37 37 MCB Islamic Bank Limited 76 66 Deutsche Bank AG, Pakistan Operations 3 3 First Women Bank Limited 42 42 The Bank of Tokyo Mitsubishi UFJ, Limited Karachi Branch 1 1 *As at 31 December Banking Results 2017 43