CONTENTS Introduction 02 Other Information Chairman’s Message 04 Corporate DNA 06 Consumer Grievances Handling Mechanism 193 Board of Directors – Profiles 10 Pattern of Shareholding 195 Company Information 14 Branch Network – Conventional 202 Board Meeting Attendance 16 Branch Network – Islamic 217 Senior Management – Profiles 24 Code of Conduct 234 Shariah Board – Profiles 27 Glossary of Terms 245 Senior Management and Internal Committees 29 Form of Proxy 251 Corporate Social Responsibility 32 Organisational Structure 34 Six Year Financial Summary 36 Statement of Value Added 46 Notice of the 23rd Annual General Meeting 48 Report of the Board Audit and Corporate Governance Committee 54 Auditors’ Review Report on Compliance with Code of Corporate Governance 56 Statement of Compliance with Code of Corporate Governance 57 Shariah Board’s Report 60 Faysal Bank Financials Directors’ Report 64 Statement of Internal Control 74 Auditors’ Report to the Members 75 Statement of Financial Position 76 Profit and Loss Account 77 Statement of Comprehensive Income 78 Statement of Changes in Equity 79 Cash Flow Statement 80 Notes to the Financial Statements 81 Annexures 173 Annual Report 2017 01 02 Annual Report 2017 Annual Report 2017 03 CAIRMAN’S MESSAGE ssalam o laikm During 20 asa an ceerated seera signiicant miestones incuding the successu competion o 0 ears o presence in aistan his ourney hich started in ith one ranch as mared ith numerous chaenges hoeer the strong consistent support o our aued customers and staehoders aoed the an to grow. Now ater thirt ears asa an has a countride presence o 40 conentiona and Isamic ranches spread across 24 cities urthermore the addition o 0 Isamic aning ranches during 20 has increased the Isamic ranch netor to ranches maing it the argest netor o dedicated Isamic ranches amongst a conentiona ans in the country. he an aso underent a transition in eadership ith the appointment o Mr Yousa ussain as resident and Chie ecutie ficer Mr. ussain is a senior aning proessiona ith oer 2 ears o diersiied inancia sector eperience ith a numer o eading inancia institutions incuding AN Amro ama and Mashre an e has een associated ith asa an since 200 and has sered the ranchise in seera senior roes incuding Chie is ficer Corporate aning ead North and ead o pecia Assets Management roup his interna eeation is a testament to asa an’s cuture o groth rom ithin and our irm resoe o proiding a progressie career path to our staff. From a macroeconomic perspectie the D gre at a rate o during 20620 the highest rate recorded in a decade Ination hoeer remained under targeted ees and as a resut the discount rate remained at during 20 hich caused a compression in aning spreads and posed a chaenge or the entire aning ector To mitigate the efect o oer spreads asa an increased ocus on groing its portoio o adances particuar on the Institutiona aning and Consumer inance ront and increased its gross AD to 6 one o the highest amongst its peers urthermore the an aso enhanced its eforts on recoer o nonperorming oans and as ae to augment its proitaiit through efectie remedia management To capitaise on its ranch epansion strateg and improe oera eficienc under the preaiing o interest rate enironment signiicant emphasis as aso paced on ranch ee productiit improements Targets or sae o mutipe products ere assigned to ranches and a numer o ne initiaties are undera to ao the an to reaise the true potentia o the ranch netor hese actions aong ith an oera contro on costs aoed the an to meet its usiness oecties despite the chaenging usiness enironment or the isca ear 20 the oernment has set a D groth target o and it is epected that arring unoreseen eents the current pace o D groth i continue Aerage CI ination rate is proected to remain in the range o 4 to during Y ased on encouraging trends in riate ector credit ea economic actiit is epected to continue to eneit rom accommodatie macroeconomic poicies CC reated actiity reduction in energ shortages and an oera improement in the securit situation his in turn has positie impications or the aning Industr as it i proide the necessar impetus or groth in the inancia sector as e or asa an the current ear i e one o sustained groth he an i continue to epand its netor ootprint and countride presence opening additiona ranches and i aso acceerate its conersion to a ully Isamic ranchise through increased emphasis on asset conersions. Additionally, inine ith the changing customer needs asa an has aso paced signiicant emphasis on digita aning and during the 0401 AAnnualnnual RReporteport 22017017 CAIRMAN’S MESSAGE ear i e taing concrete steps to improe the oera customer eperience through process automation and ro out o digita aning oferings We are conident that these steps aong ith our oera ocus on high uait diferentiated serice i ao us to deier on our aspiration o proiding an eceptiona eperience to our aued cients I hae aith in the aiit o our teams to stand strong and steadast to raise the ar higher in 20 and continue to deier aoe the epectations o the staehoders urther, I oud ie to acnoedge the positie contriution o the oard Memers ho hae een instrumenta in heping us achiee our oecties e ocus agenda items o the D hae een digitisation o the aning processes to ensure seamess serice and product deiery ranch netor epansion and conersion into an Isamic an hist adding aue to the an’s proitaiity. n eha o the oard o Directors I oud aso ie to etend m gratitude to our customers the tate an o aistan and the ecurities change Commission o aistan or their continued support and guidance on our path to progress aroo Raatulla an aran o te oard AnnualAnnual RReporteport 22017017 0502 CORPORATE DNA Or Vision ceence in a that e do Or Vales ur dai code o conduct is eempiied eight core aues: our threshod aues aues at the heart o our rand our diferentiator aues aues that set our rand apart hreshol Vales Vaues at the heart o our rand Interity Teamork We are recognised our reiaiity We unction as a team Within unctions crediiit and character e cooperate We eiee in ethica honourae eteen unctions e coaorate timeproen principes o uprightness Together e aim or eceence and We stand or and aide honesty truth and eadership in our chosen marets transparenc Or Interity Or Ientity Or Team Or sset esect Professionalism We hod our customers inestors and We are proicient and eficient in a that e do reguators in high esteem We proide aning serices noedgea We uphod our customers’ rights to demand and siuy eficient serice We uphod reguator oigations We appreciate and respect our proession and aoe a our an Or esect Or ty Or rofessionalism Or ometence 0601 AAnnualnnual RReporteport 22017017 CORPORATE DNA Or ission Achiee eadership in proiding inancia serices in chosen marets through innoation ifferentiator Vales Vaues that set our rand apart assion Innoation We ring ea and enthusiasm or aning We pioneer noe and more eficient as to to or deier soutions We are ecited to proide customers ith the We are dedicated to a cuture o improement est or the estsuited and modernisation We go the etra mie in egitimate acceptae We stand or originaity in thought in action as and in eie Or assion Or Worth Or Innoation Or trenth esonsieness omassion We are receptie to the need or change and ur concern or our coeagues, our customers improement our communities and our countr We are proactie and anticipate our customers’ sets us apart needs and ants To each other e are a ami We act uic to modiy adust or prepare or or each other e are a meaningu source o ne reaities shared humanit Or esonsieness Or istinisher Or omassion Or ift AAnnualnnual RReporteport 22017017 0207 BOARD OF DIRECTORS eft iht Abdulelah Ebrahim Imtiaz Ahmad Pervez Juma Hasan Ali Abul Ahmed Abdulrahim Farooq Rahmatullah Khan Yousaf Hussain Fuad Azim Hashimi Mian Muhammad Younis Ali Munir Abdulla Abdulaziz Ali Taleb Mohamed AlQasimi Director Director Mohamed Abdulla Bucheery Chairman President & Director Director Director Director Director 08 Vice Chairman Annual Report 2017 Chief Executive Officer BOARD OF DIRECTORS eft iht Abdulelah Ebrahim Imtiaz Ahmad Pervez Juma Hasan Ali Abul Ahmed Abdulrahim Farooq Rahmatullah Khan Yousaf Hussain Fuad Azim Hashimi Mian Muhammad Younis Ali Munir Abdulla Abdulaziz Ali Taleb Mohamed AlQasimi Director Director Mohamed Abdulla Bucheery Chairman President & Director Director Director Director Director Vice Chairman Chief Executive Officer Annual Report 2017 09 BBOARDOARD OFOF DIRECDIRECTORSTORS –_ PROFILESPROFILES BOARD OF DIRECTORS – PROFILES Faroo ahmatllah han esource Deeopment Committee o Aga han those ithin the Corporate Credit and Transaction Mareting and torage imited AM as iuidator. aran niersit ospita aning unctions e has een ith asa an Mian Younis sered in the uic ector or a ong time aistan einer imited Director and Chairman imited since August 2008, ith a significant hie hoding positions in diferent oernment emi contriution to the ranchise in his preious positions oernment and Autonomous odies ie Mr. aroo ahmatuah is a a graduate e oined o the oard as Chie is icer, egiona Corporate aning Economic Afair Division EAD), M/O A, I, aistan Burma hell il Distriution Compan in 968 and asco i Compan eadNorth and ead o pecia Assets Management otare port oard and inance Diision ored in diferent roes in Chemicas uman esources Group is eperience aso incudes a senior roe ith e gained ast eperience in management through Marketing, upply, Distribution, etail, etc e as e is aso a Trustee o egends Trust ormed ama an and earier assignments ith Mashre formuation of