United Bank Limited UNCONSOLIDATED FINANCIAL STATEMENTS AS AT DECEMBER 31, 2016 UNITED BANK LIMITED DIRECTORS’ REPORT TO THE MEMBERS 2016

On behalf of the Board of Directors, I am pleased to present the 58th Annual Report of United Bank Limited for the year ended December 31, 2016.

Standalone Results - Rs. in billion Financial Highlights UBL posted a profit after tax (PAT) of Rs. 27.73 billion for the year ended December 31, 2016. The consolidated PAT was 46.02 42.17 recorded at Rs. 28.00 billion, an increase of 25.73 27.73 4% over the prior year (2015: Rs. 27.01 billion). The Earnings per share stood at Rs. PBT PAT 22.65 per share for the year ended 2016 in 2015 2016 comparison to Rs. 21.02 per share in 2015.

Profit before tax (PBT) stood at Rs. 46.02 billion, a growth of 9% over the last year. The overall Return on Equity (RoE) measured at 25% (2015: 25.7%). This consistent performance has been achieved through strong balance sheet growth driven by gaining market share through core deposits along with prudent build up in high yielding assets. The break-up value per share has increased to Rs. 124.0 as at Dec 31’16 (Dec’ 15: Rs. 116.1 per share)

Overall revenues have grown by 4% over 2015, closing at Rs. 80.65 billion. Net Markup Income has increased by 2% and non-markup income by 7% year on year. The cost base continues to be efficiently managed, with the overall expense growth curtailed at 3% over 2015 and the cost to income ratio maintained in line with the previous year’s level at 39.6% despite lower margins, expansion across the branch network and reinvestment in our core business segments.

Maintaining the focus on underwriting standards along with aggressive recoveries resulted in a net reduction in NPLs from Rs. 46.83 billion in 2015 to Rs. 44.57 billion in 2016. The asset quality level continues to improve and stood at 8.1% as at Dec’16 (2015: 9.4%). This has resulted in a more than 50% reduction in the provisioning expense for the year.

The Board is pleased to recommend a final cash dividend of Rs. 4 per share i.e. 40% for the year ended December 31, 2016, bringing the total cash dividend for the year 2016 to 130%.

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UNITED BANK LIMITED DIRECTORS’ REPORT TO THE MEMBERS 2016

Net Markup Income

Rs. in billions 55.84 57.04 The prevailing low interest rate 60.00 8.0% environment along with the 7.0% 50.00 savings floor continued to 6.0% 40.00 5.0% constrict banking margins. These 30.00 5.6% challenges notwithstanding, UBL 4.7% 4.0% 20.00 3.0% has expanded its Net Markup 10.00 2.0% Income by 2%, closing 2016 at Rs. - 1.0% 57.04 billion. Net interest margin 2015 2016 was recorded at 4.7% in 2016 Net Interest Income Net Interest Margin (2015: 5.6%).

UBL’s balance sheet growth has resulted from a robust buildup in deposits as average domestic current account volumes saw an increase of 18% year on year in 2016. The Bank’s overall cost of deposits decreased by 42 bps to 2.7% in 2016 (2015: 3.1%). Growth in the loan portfolio across all major business segments despite modest credit demand along with further investment in high yielding bonds portfolio maintained interest earnings.

Non-Markup Income

UBL’s non-markup income grew by 7% over 2015 to close at Rs. 23.61 billion and continues Rs. in billions to strengthen the overall revenue profile of the 7% bank. Earnings are built on a diverse range of services, from fee based facilities across Retail Bank and UBL’s flagship branchless banking 23.61 service, Omni. Trade and investment banking 21.99 services across Corporate as well as leading positions within Treasury and Capital markets continue to grow and diversify revenue 2015 2016 potential. The overall contribution of Non Mark Non Interest Income up Income to gross revenues improved to 29.3% in 2016 (2015: 28.3%).

Fee, commission and brokerage income constituted 52% of total non-markup income and was recorded at Rs. 12.32 billion (2015: Rs. 12.20 billion). The ATM / Debit Cards business witnessed significant growth during the year with over half a million new cards issued and consistent

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UNITED BANK LIMITED DIRECTORS’ REPORT TO THE MEMBERS 2016 growth in customer transaction volumes resulting in a 21% growth in commissions. Trade commissions grew by 14% over 2015, in spite of commodity price pressures and weak trade performance of the economy impacting business. UBL Omni remains one of the largest contributors to the fee base as we expanded our Omni network to over 42,000 agents in order to better serve an ever growing customer base. This has resulted in increased revenues from payment services and disbursements under G2P programs. General economic slowdown in the Gulf Cooperation Council (GCC) region and rebate cutback by the State Bank of Pakistan restricted home remittance earnings. However, despite these challenges, we managed to increase our overall volumes from last year and continue to retain our leadership position with a market share of over 25%. Corporate mandates for equity and debt advisory as well as trusteeship services led to a 19% growth in investment banking fees. 2016 proved to be a particularly successful year for International Investment Banking that saw an increase in revenues of around 70% over the previous year.

Dividend income reached Rs. 3.27 billion, slightly ahead the previous year’s level of Rs. 3.20 billion. With focus on maximizing dividend yield, our strategy remains to maintain a well- balanced equities portfolio with investments in a diverse range of sectors and scrips with strong fundamentals. Capital gains increased to Rs. 5.36 billion from Rs. 3.24 billion in 2015, primarily on timely realization on bonds and equities. Foreign exchange earnings closed at Rs. 1.70 billion, a reduction of 25% from Rs. 2.27 billion earned in 2015 as reduced foreign exchange flows and a relatively stable currency market weighed heavy across the industry.

Provisions and loan losses Rs. in billions 3.71 The net provisioning expense decreased by 53% from Rs. 3.71

1.74 billion in 2015 to Rs. 1.74 billion in the current year. Asset quality was measured at 8.1%, an improvement of 133 bps from last year. This

2015 2016 improvement can be attributed to credit quality considerations driving Total Provisions loan book expansion along with enhanced focus on recoveries against the bank’s non-performing corporate portfolio led by our Special Assets Management Unit. We remain well-reserved against loan losses as the coverage ratio improved from 80.1% at Dec’15 to 83.9% as at Dec’16.

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UNITED BANK LIMITED DIRECTORS’ REPORT TO THE MEMBERS 2016

Cost management

UBL’s administrative expenses increased by 3% over 2015 to close at Rs. 31.90 billion (2015: Rs. 30.90 billion). Staff cost increase was well contained at 6% over 2015, with headcount maintained at optimum levels. The increase in personnel cost can be attributed to market linked salary increases and performance increments. Premises costs were up by a mere 2% over the previous year, essentially a result of rent increases on lease renewals across a major part of the network. Electricity and gas costs were well-contained through the introduction of cost saving initiatives to ensure efficient usage while centralization of the procurement process restricted overall expenses. Variable costs decreased by 5% compared to the previous year as we continued to actively monitor and rationalize controllable expenses. The Bank’s cost to income ratio was recorded at 39.6% (2015: 39.7%). Maximizing operational efficiencies remains our key priority as we continue to evolve leaner operating models. As we build synergies across front office and operations we remain fully committed to continuous improvement in service standards.

Rs. in billions Balance Sheet Management 121 120 UBL’s balance sheet size reached Rs. 1.58 trillion as at Dec’16, an increase of 13% 12.2% over Dec’15. The Bank’s overall deposits grew by 12% over Dec’15 to reach Rs. 1.18 931 1,059 trillion (2015: Rs. 1.05 trillion). Average domestic deposits grew by 14% over Dec’15 with market share recorded at 2015 2016 8.66% in 2016 (2015: 8.55%). Our deposit Core Deposits Non-Core Deposits mobilization strategy centers around active acquisition of new to bank relationships with aggressive focus on current accounts. This is depicted by a year on year growth of 16% in core deposits and 18% in average current deposits during the year. The expansion in the Banks’ core deposits provides a sustainable funding base for business growth in addition to keeping costs down in the current low interest rate scenario. Domestic CASA stood strong at 84% (2015: 84%), with the overall cost of deposits witnessing a 56 bps reduction from 3.4% last year to 2.9% in 2016.

The Bank’s net loans and advances grew by 12% over Dec’15 to close at Rs. 510.1 billion (Dec’15: Rs. 455.4 billion). The lending strategy is focused on selectively growing the loan book, while maximizing yields on overall relationships. The corporate advances portfolio grew by 10%

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UNITED BANK LIMITED DIRECTORS’ REPORT TO THE MEMBERS 2016 over Dec’15, with 15% growth in the SME segment. Despite limited credit opportunities in the GCC, the International loan book grew by 16% to Rs. 168.2 billion; driven by Corporate and Financial Institutions based lending.

The Bank’s investment portfolio grew to Rs. 806.5 billion by the end of Dec’16, an increase of 12% over Dec’15. The portfolio is mainly concentrated in treasury securities with Rs. 570.6 billion (2015: Rs. 486.9 billion) invested in Pakistan Investment Bonds, generating strong yields of 9.7% in 2016. The Bank’s equity book closed at Rs. 16.0 billion (2015: Rs. 19.3 billion), consisting of long-term investments with stable dividend yields. Despite capital gains of Rs 5.36 billion taken in 2016, the overall revaluation surplus on Available for Sale Investments stood at Rs. 23.3 billion as at Dec 31, 2016 (Dec 2015: Rs. 25.6 billion).

Strong Capital Ratios

UBL’s capital ratios remained optimal as the unconsolidated Tier-1 CAR stood at 10.9% with the overall capital adequacy improving to 15.1% in Dec’16 compared to 10.4% and 14.6% in Dec’15 respectively. Our capital position remains comfortable in view of regulatory minimum and future Basel III requirements along with supporting future credit growth.

Best Bank 2016

The major achievement of United Bank Limited (UBL) in 2016 was that it was crowned the “Best Bank 2016” in the first ever Pakistan Banking Awards held by the Institute of Bankers Pakistan. The award was a testament to UBL’s position as a leading financial institution in Pakistan, its contribution to national development and overall effective management of resources and stakeholder expectations.

Economy Review

The economic turnaround which began its course after the 2013 elections has gathered further momentum during the last year. Initiation of energy and infrastructure projects, structural reforms, successful closure of the IMF program, sustained low oil prices, controlled inflation, privatization drive, issuance of global bonds and the resultant rise in foreign exchange (FX) reserves have all contributed to this positive momentum. This economic progress has been well appreciated by key international donors and rating agencies. Visible progress on the China Pakistan Economic Corridor (CPEC) over the last 12 months indicates that the country is now on the path to long term and sustainable economic growth.

The energy sector remained a key priority for the government and notable progress has been made in the right direction. However, in addition to the massive plan for increase in power

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UNITED BANK LIMITED DIRECTORS’ REPORT TO THE MEMBERS 2016 generation, the government this is also the need to enhance focus on improving transmission and distribution systems. The persistent low international oil prices have also helped contain circular debt accumulation. The low interest rate regime along with improvement in the energy supply have also rejuvenated the overall economic engine with the country achieving 4.7% real GDP growth in FY’16, the strongest in the last 8 years.

On the external account front, there has been a strong build up in FX reserves which have surpassed a record level of USD 23 billion from as low as USD 8 billion in January 2014. This has also led to a very strong to stable exchange rate regime during the past two years whilst improving overall import coverage. In view of the improved economic outlook, Pakistan has issued various global bonds, including Eurobonds and Sukuks, all met by strong interest from international capital markets.

Despite overall improvement in the FX reserves, the country’s trade deficit deteriorated during H1 FY’17 to a level of USD 14.5 billion, up 22.2% on a YoY basis. During H1 FY’17, exports declined by 3.8% year on year to USD 9.9 billion while imports increased by 10.1% year on year to USD 24.4 billion. Due to relatively higher trade gap on goods and services along with slowdown in workers’ remittances, the current account deficit for H1 FY’17 widened significantly to USD 3.6 billion as compared to USD 1.9 billion during the same period last year. After years of strong performance, remittances went down during H1 FY’17 to close at USD 9.5 billion against USD 9.7 billion vs in HY’16. Despite weaker current account performance, the financial account supported the country’s reserves position with a net inflow of USD 3.7 billion during H1 FY’17. The country’s overall FX reserves crossed a record USD 24 billion for the first time in the country’s history and closed the year 2016 slightly lower at USD 23.2 billion, a growth of 11.3% over the level of USD 20.8 billion a year ago. Due to a relatively stable balance of payments position during the year, PKR-USD exchange rate remained largely stable and closed 2016 at PKR 104.60, with marginal appreciation over PKR 104.74 at Dec’15.

For the fifth year in a row, the average CPI inflation remained in single digits and at a lower level of 3.8% during 2016 as a result of significantly lower commodity prices, though it picked up some pace in comparison to the 2015 average CPI level of 2.6%. Although the inflation level remains comfortable, the gradual rise in the CPI reading has brought the cautious view back on interest rates. Hence SBP decided to keep its policy rate largely unchanged during the year with the last change being a marginal rate cut of 25bps in May 2016.

The Pakistan Stock Exchange (PSX) continued its upward trajectory and has been approaching record levels of 50k points. During 2016, the KSE-100 index ended the year at around 48k points, posting a significant year on year growth of 46%, making it the best performing market

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UNITED BANK LIMITED DIRECTORS’ REPORT TO THE MEMBERS 2016 in Asia during 2016. Strong performance of Pakistan equities in 2016 was mainly led by strong liquidity in the local system owing to low interest rates and rising investor confidence. Economic recovery has positively affected local demand for oil stocks while an improving security situation and exuberance on Pakistan’s reclassification in MSCI Emerging Markets Index have also driven the overall bullish sentiment.

Deposits for the banking sector grew by 15.8% during the year with major impetus coming towards the latter part of the year. Despite overall lower interest rates, loan momentum remained subdued during most part of the year; however, gross advances gained some strength during the latter part of the period with a growth of 13.6% in 2016. Non-performing loans for the industry remained relatively stable at Rs. 631 billion at September 16 while the gross infection ratio reduced to 11.3% from 11.4% in Dec’15.

International

The low oil price environment since mid-2015 compelled the GCC countries to resort to stringent austerity measures. Lower subsidies, sizeable reduction in government spending and rising external financing was seen across the gulf countries. As a result, IMF projected the region’s GDP to grow by 1.7% in 2016 as against 4% growth posted last year. UAE, and to a certain extent Qatar, are being supported by relatively diversified economies with continued investment in infrastructure projects cushioning the fall in oil prices. Going forward, subdued government spending will continue to constrain GCC economies, albeit to a lesser degree as oil prices may pick up in light of OPEC’s recent decision to curtail production.

UBL International branches continued to positively contribute towards the Banks’ profitability in 2016. The strategy of deepening its existing customer base and expanding on a carefully carved out target market has enabled the Bank to record promising growth in all asset classes. As a result, the total assets under UBL International closed at a record high of USD 2,973 million. Structured on the wholesale banking model, GCC branches’ risk remained diversified in core corporate lending, fixed income investments and the financial institutions segments. Despite a challenging liquidity situation prevailing in the GCC markets, the Bank was able to record 7% growth in its overall deposit base in 2016.

Conscious of the developing economic situation in Gulf countries, the Bank has enhanced its scale of due diligence and strengthened the risk surveillance of its existing portfolio. The Bank has been able to de-risk a significant part of its Yemen exposures and continues to operate with the risk reduction strategy going forward, all the while closely monitoring the developing situation on ground.

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UNITED BANK LIMITED DIRECTORS’ REPORT TO THE MEMBERS 2016

The international branches remained compliant with the applicable regulatory capital, liquidity and provisioning requirements wherever required and continue to carry adequate provision to weather any potential adverse situation on its network.

The Bank continued to play a lead role in processing home remittances to Pakistan and retained its position as the market leader in 2016 as well. As part of UBL’s commitment to provide its customers fast, secure and reliable banking services, the Bank launched the first ever Instant Remittance Kiosk in its Bahrain branches. The Bank plans to roll out these Kiosks in other international locations subject to securing the requisite regulatory approvals.

UBL International branches continued to capitalize on the unique offerings from its Non- Resident Pakistani (NRP) initiative to provide banking access in Pakistan to the overseas Pakistanis living in GCC countries. Since this initiative’s launch, the International branches have contributed over Rs. 1.0 billion as NRP deposits in Pakistan.

In 2016, the Bank completed the international upgrade of its core banking system in the USA and all the GCC branches. We have consistently been investing in technology within the international business to ensure that the information systems remain compliant with the applicable security, regulatory and compliance standards.

With the objective of maximizing synergies from increasing cross-border business, coordination channels between UBL UK, UBL Switzerland, UBL Tanzania and International branches have been further strengthened. The international branches continue to operate with a coherent ‘one-bank’ strategy with the rest of group independent entities.

Subsidiaries & Associates

Our subsidiaries and associates continued to post significant contribution to the UBL Group’s consolidated results.

United National Bank Limited (UBL UK) is a 55% owned subsidiary of UBL. UBL UK recorded a PBT of GBP 7.1 million in 2016, 1% lower compared to the previous year. This is attributable to one off recoveries against non-performing loans booked last year. Spreads remain compressed due to the low interest rate outlook in the UK. Resultantly Net Interest Income (NII) reported a 7% reduction year on year. Non-Funded Income (NFI) depicted a growth of 5% over last year. UBL UK’s deposits grew by 13% during the year with greater focus on retail deposits, while funds were primarily deployed in investments, with a marginal 3% decline in advances.

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UNITED BANK LIMITED DIRECTORS’ REPORT TO THE MEMBERS 2016

UBL Switzerland AG (USAG) is a wholly owned subsidiary of UBL. Its revenues derived principally from the trade business. USAG’s profit before tax increased by 6% over the previous year, mainly driven by a rise in trade related fees. NII also showed a healthy growth of 8%. The balance sheet continued to expand, led by growth in deposits and borrowings.

UBL Fund Managers Limited, Pakistan (UBLFM) is a 98.9% owned subsidiary of UBL and has witnessed a growth in PBT of 20% over the prior year. The funds under management of UBLFM remained at Rs. 76.15 billion, a significant growth of 24% over 2015. The growth in profits is fueled by a rise in non-fund income.

UBL Bank (Tanzania) Limited (UBTL) was established in 2012 and is a wholly owned subsidiary of UBL. During the year UBTL has incurred a loss, mainly as a result of reduced FX income, provisioning against non-performing loans and higher administrative expenses with the opening of a second branch. NII registered a growth of 11%. Foreign exchange earnings remained heavily impacted, declining by 87% year on year as a result of a stable local currency and reduced demand of foreign currency. Fee and commission revenues increased by 8%.

Technology

UBL retains its strong focus towards digitizing its operations and building its lead in providing innovative solutions to its clients. In 2016 we have laid the foundation of a futuristic ‘Digital Strategy’ that aims to revolutionize the way we do business. Our strategy has a three-pronged focus: continuously improving client experience; investing in technologies that will enable that experience; and, staying at the forefront of cybersecurity.

In 2016, UBL, in collaboration with MasterCard, UBL launched a QR code based payment solution, “UBL MasterPass QR”, the first of its kind payment system for the local industry and a global first for MasterCard. In recognition of this achievement, UBL also won the “Innovation Award” at the Mastercard Innovation Forum. UBL has also enabled card less ATM transactions that utilize biometric technology for authentication. At present, we own the largest biometric enabled ATM network in Pakistan spanning over 530 ATMs. In the area of net banking, we have deployed a two factor authentication mechanism for new sign-ups, SMS Alerts for online activities and swift on boarding process with upgraded transaction limits.

Credit Ratings In June 2016, JCR-VIS Credit Rating Company Limited (JCR-VIS) upgraded the entity ratings of United Bank Limited (UBL) to ‘AAA/A-1+’ (Triple A/A-One Plus) from AA+/A-1+ (Double A Plus/A-One Plus). Outlook on the assigned ratings is ‘Stable’.

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UNITED BANK LIMITED DIRECTORS’ REPORT TO THE MEMBERS 2016

The assigned ratings incorporate the sustained improvement across key performance areas including asset quality, liquidity, capitalization and profitability. Being a strong domestic franchise, UBL’s diversified businesses and revenue streams are also a key ratings driver; as the bank has a sizeable presence in the overseas market. Ratings also derive strength from the strong liquidity profile of the Bank and the commitment to maintain optimal capital levels with a buffer over and above the regulatory CAR requirement

Capital Intelligence (CI), an international credit rating agency, has re-affirmed UBL’s long-term and short-term Foreign Currency ratings at B- and B respectively in line with CI’s sovereign ratings for Pakistan. In addition, the Bank’s Financial Strength rating has been re-affirmed at BB+, with the Outlook reaffirmed at Stable based on the Bank’s strong performance.

Future Outlook 2016 was an eventful year for the country’s economy with appreciable improvement across key macroeconomic areas. The challenge for the government now is to fully capitalize on this momentum by undertaking structural reforms as well as continued improvement in the law and order situation.

The economic fundamentals are likely to gain further strength in the coming year with the government expected to increase development spending and speed up its economic reforms agenda with the approaching general elections (May 2018). The depressed oil prices will provide the necessary fiscal buffer for higher spending in addition to supporting the country’s balance of payment outlook and containing inflation at comfortable levels.

2017 would also be critical from the standpoint of China Pakistan Economic Corridor (CPEC). Potential improvement in the security situation after the massive counter-terrorism operation, higher industrial activity driven by CPEC and other big ticket projects would largely improve investor confidence and build a longer term view on Pakistan.

UBL’s extensive outreach, market dominance across major segments and global network places us well to capitalize on Pakistan’s economic turnaround. Retail Bank would remain the core driver of our franchise where our strategy would continue to revolve around aggressive acquisition of new to bank clients and deepening of relationships in order to grow the core deposits base. We are in process of scaling up our Small and Medium Enterprises (SME) segment and plan to actively tap its potential to capture increased credit and trade volumes. Leveraging our large rural presence, we will strive towards greater financial inclusion through tailored product offerings for the segment. We are geared up to re-establish UBL as an innovative and active player in the Consumer business through new product development and

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UNITED BANK LIMITED DIRECTORS’ REPORT TO THE MEMBERS 2016 enhanced penetration. The Corporate and Institutional Banking Group would continue to expand relationships within the public and private sectors through selective credit expansion that maximizes relationship yield and capital efficiency. The Financial Institutions Group would take the lead in the CPEC initiative, building new strategic alliances and greater synergies with our domestic and international network. UBL International would work towards strengthening contribution to group profits by re-energizing the Retail Engine and undertaking cautious expansion in corporate assets. In order to build on our position as the most progressive and innovative bank, our focus would remain on enhancing alternate delivery channels including the development of next generation payment solutions.

Statement under Clause XVI of the Code of Corporate Governance

The Board of Directors is committed to ensure that the requirements of Corporate Governance set by the Securities and Exchange Commission of Pakistan are fully met. The Bank has adopted good corporate governance practices and the Directors are pleased to report that:

. The financial statements prepared by the management of the Bank present fairly the state of affairs of the Bank, the results of its operations, cash flows and changes in equity.

. Proper books of account of the Bank have been maintained.

. Appropriate accounting policies have been consistently applied in the preparation of the financial statements, except for the change in accounting policies as described in Note 5. Accounting estimates are based on reasonable and prudent judgment.

. International Financial Reporting Standards, as applicable to banks in Pakistan, have been followed in the preparation of the financial statements without any departure therefrom.

. The system of internal control in the Bank is sound in design, and is effectively implemented and monitored.

. There are no significant doubts regarding the Bank’s ability to continue as a going concern.

. There has been no material departure from the best practices of corporate governance.

. Performance highlights for the last six years are attached to these unconsolidated financial statements.

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UNITED BANK LIMITED DIRECTORS’ REPORT TO THE MEMBERS 2016

. Details of directors’ training programs are given in the statement of compliance with the code of corporate governance.

The Board has constituted the following three Committees with defined Terms of Reference (TORs):

Board Audit Committee (BAC):

1. Mr. Arshad Ahmad Mir Chairman 2. Mr. Amin Uddin Member 3. Mr. Haider Zameer Choudrey Member

Board Risk and Compliance Committee (BRCC):

1. Mr. Zameer Mohammed Choudrey, CBE Chairman 2. Mr. Zaheer Sajjad Member 3. Mr. Wajahat Husain Member

Human Resource & Compensation Committee (HRCC):

1. Mr. Khalid A. Sherwani Chairman 2. Mr. Rizwan Pervez Member 3. Mr. Wajahat Husain Member

The number of Board Committees’ meetings held during the year and the number of meetings attended by the directors is shown below:

BAC BRCC HRCC Number of meetings held 4 4 4 Number of meetings attended: Mr. Zameer Mohammed Choudrey, CBE - 4 - Mr. Haider Zameer Choudrey 4 - - Mr. Rizwan Pervez - - 4 Mr. Amin Uddin 4 - - Mr. Arshad Ahmad Mir 4 - - Mr. Zaheer Sajjad * - 3 1 Mr. Khalid A. Sherwani * - 1 3 Mr. Wajahat Husain - 4 4

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UNITED BANK LIMITED DIRECTORS’ REPORT TO THE MEMBERS 2016

* During the year, BRCC and HRCC were reconstituted. The number of meetings attended by these two directors have been mentioned accordingly.

The Bank operates five funded retirement Schemes which are the Provident Fund, Gratuity Fund, Pension Fund, Benevolent Fund and General Provident Fund.

The values of the investments of these funds based on their latest audited financial statements as at December 31, 2015 are as follows:

Rupees in ‘000 Employees’ Provident Fund 3,427,753

Employees’ Gratuity Fund 655,102

Staff Pension Fund 2,911,286

Staff General Provident Fund 1,201,336

Officers / Non-Officers’ Benevolent Fund 900,968

Meetings of the Board of Directors

During the year under review, the Board of Directors met six times. The number of meetings attended by each Director during the year is shown below:

Name of the Director Designation Meetings attended Sir Mohammed Anwar Pervez, OBE, HPk Chairman 6 Mr. Zameer Mohammed Choudrey, CBE Director 6

Mr. Amin Uddin Director 6

Mr. Arshad Ahmad Mir Director 6

Mr. Zaheer Sajjad Director 6

Mr. Haider Zameer Choudrey Director 6

Mr. Rizwan Pervez Director 6

Mr. Khalid A. Sherwani Director 6 Mr. Wajahat Husain President & CEO 6

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UNITED BANK LIMITED DIRECTORS’ REPORT TO THE MEMBERS 2016

Pattern of Shareholding

The pattern of shareholding as at December 31, 2016, as required u/s 236 of the Companies

Ordinance, 1984 and Clause (xvi) of the Code of Corporate Governance is given below:

% of Ordinary Shareholders No. of Shares Shares Bestway Group (BG) 752,406,007 61.46 Privatization Commission of Pakistan 1,714 0.00 General Public & Others 397,147,310 32.44 NIT 1,036,099 0.09 Banks, DFIs & NBFIs 24,552,940 2.01 Insurance Companies 20,328,372 1.66 Modarabas & Mutual Funds 21,324,307 1.74 International GDRs (non-voting shares) 7,382,938 0.60 TOTAL OUTSTANDING SHARES 1,224,179,687 100.00

The aggregate shares held by the following are:

No. of shares a) Associated Companies, undertakings & related parties - Bestway (Holdings) Limited * 631,728,895 - Bestway Cement Limited 93,649,744 b) NIT - CDC-Trustee National Investment (Unit) Trust 1,036,099 21,324,307 c) Modarabas & Mutual Funds ** d) Public sector companies and corporations 2,203,506 e) Banks, DFIs, NBFIs, Insurance Companies 44,881,312 f) Directors & CEO *** -Sir Mohammed Anwar Pervez, OBE, HPk 12,765,368 -Zameer Mohammed Choudrey, CBE 2,348,870 - Haider Zameer Choudrey 2,000,000 - Rizwan Pervez 44,500 -Amin Uddin 2,750 -Arshad Ahmad Mir 2,500 - Zaheer Sajjad 2,537 - Khalid A. Sherwani 2,500 - Wajahat Husain, President & CEO 377,490 g) - Executives 1,607,711

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UNITED BANK LIMITED DIRECTORS’ REPORT TO THE MEMBERS 2016

* The Bank is a subsidiary of Bestway (Holdings) Limited which is incorporated in the United Kingdom

** Name wise detail of Modarabas & Mutual Funds is annexed with Categories of Shareholders.

*** There were no shares held by the spouses or minor children of the Directors and CEO of the Bank.

Shareholders holding 5% or more voting rights No. of shares % Bestway (Holdings) Limited 631,728,895 51.60 Bestway Cement Limited 93,649,744 7.65

Trades in the shares of UBL carried out by Directors, Executives and their spouses and minor children, as defined in Clause xvi (l) of the Code of Corporate Governance are annexed along with the Pattern of Shareholding.

Risk Management Framework

The Risk and Credit Policy Group has the following divisions, headed by senior executives, reporting to the Group Executive - Risk and Credit Policy:- . Credit Policy & Research . Credit Risk Management . Market & Treasury Risk, Basel - Analytics & Reporting and FI Risk Management . Operational Risk & Basel II . International Risk . Consumer Credit Policy & Analytics A Risk Management Committee comprising of heads of all areas of Risk, Business and Credit Administration are responsible for reviewing and undertaking strategic business decisions with a collective view on Credit Risk, Market Risk, Operational Risk and Capital.

The Domestic Credit Policies of the bank were updated and modified based on the changing risk and regulatory environment and implemented during the year. The revision of bank’s policies includes “Credit Policy 2016” and “Agriculture Credit Policy 2016”.

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UNITED BANK LIMITED DIRECTORS’ REPORT TO THE MEMBERS 2016

During the year the portfolio was mapped and aligned with revision in Prudential Regulations and Circulars issued by SBP. This included the remapping of the SME portfolio as per the new definition of ‘SE’ and ‘ME’. Furthermore, the revised processes for rescheduling and restructuring have also been implemented. In addition to the above, a simplified loan application form for facilitating agriculture lending has also been adopted. On the consumer finance portfolio, as interest rates bottom out, policies were reviewed in view of changing market dynamics to increase quality acquisitions. The overall processes were also strengthened to ensure better portfolio performance. Additionally, portfolio management techniques such as use of bureau reviews were also used for identifying high potential customers to assist in recoveries from vintage NPLs.

The bank has maintained its CAR well above prescribed regulatory thresholds throughout the year based on applicable requirements under Basel-III. The Internal Capital Adequacy Assessment Process (ICAAP) Framework is continuously reviewed on an annual basis and updated based on any material change in the underlying long term strategy of the bank.

The market risk function continues to actively monitor portfolio performance in light of the changing dynamics of both domestic and international markets. The function uses sophisticated tools including sensitivity analyses and scenario analyses of portfolio positions in order to assess potential risks resulting from shifts in interest rates.

As per the bank’s approved Operational Risk Management Policy and Framework, a database is being maintained for covering losses, control breaches and near misses. Major risk events are analyzed from the control breach perspective and mitigating controls are assessed on design and operational effectiveness. Quarterly updates on operational risk events are presented to senior management and the Board’s Risk & Compliance Committee.

There were continued efforts to enhance the scope of and implement a robust ‘Operational Risk Management Framework’. The bank has an internal operational risk awareness program which is aimed at building capacity and inculcating a risk free culture in the staff through workshops and on-job awareness for promoting greater risk awareness. Proactive management and consistent improvements in operational risk profile and the overall control environment remains a key focus across all functions.

Statement of Internal Controls The Board is pleased to endorse the statement made by management relating to Internal Controls over Financial Reporting (ICFR) and also the overall internal controls. The Statement on Internal Controls is included in the Annual Report.

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UNITED BANK LIMITED DIRECTORS’ REPORT TO THE MEMBERS 2016

Auditors The present auditors M/S. KPMG Taseer Hadi & Co., Chartered Accountants and M/S. A. F. Ferguson & Co., Chartered Accountants, retire and being eligible, offer themselves for re- appointment in the forthcoming Annual General Meeting. The Board of Directors, on the recommendation of the Board Audit Committee, recommends M/S. KPMG Taseer Hadi & Co., Chartered Accountants and M/S. A. F. Ferguson & Co., Chartered Accountants, for re- appointment as auditors of the Bank.

Conclusion In conclusion, I would like to express my gratitude to UBL shareholders and customers for their continued patronage as well as to my fellow Board members for their cooperation. We value the commitment and dedication of our staff. We would also like to extend our appreciation to the Government of Pakistan, the State Bank of Pakistan, the Securities & Exchange Commission and other regulatory bodies for their continuous guidance and support.

For and on behalf of the Board,

Sir Mohammed Anwar Pervez, OBE, HPk

Chairman

Dubai

February 17, 2017

17

UNCONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2016

Note 2016 2015 ------(Rupees in '000) ------

ASSETS Cash and balances with treasury banks 6 131,506,861 112,011,276 Balances with other banks 7 14,920,994 16,859,118 Lendings to financial institutions 8 34,168,287 24,094,768 Investments 9 806,531,246 719,518,093

Advances Performing 10 502,940,552 446,116,682 Non-performing - net of provision 10 7,170,372 9,297,198 510,110,924 455,413,880

Operating fixed assets 11 35,581,758 31,630,374 Deferred tax asset - net - - Other assets 12 44,730,953 41,123,334 1,577,551,023 1,400,650,843

LIABILITIES Bills payable 14 11,756,422 13,391,739 Borrowings 15 201,549,619 163,131,947 Deposits and other accounts 16 1,179,887,048 1,051,235,170 Subordinated loans - - Liabilities against assets subject to finance lease - - Deferred tax liability - net 17 4,691,544 4,186,406 Other liabilities 18 27,879,529 26,570,106 1,425,764,162 1,258,515,368

NET ASSETS 151,786,861 142,135,475

REPRESENTED BY: Share capital 19 12,241,798 12,241,798 Reserves 40,454,505 38,402,303 Unappropriated profit 64,246,270 55,222,960 116,942,573 105,867,061

Surplus on revaluation of assets - net of deferred tax 20 34,844,288 36,268,414 151,786,861 142,135,475

CONTINGENCIES AND COMMITMENTS 21

The annexed notes from 1 to 48 and annexures form an integral part of these unconsolidated financial statements.

Wajahat Husain Amin Uddin Zameer Mohammed Choudrey, CBE Sir Mohammed Anwar Pervez, OBE, HPk President & Director Director Chairman Chief Executive Officer UNCONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED DECEMBER 31, 2016

Note 2016 2015 ------(Rupees in '000) ------

Mark-up / return / interest earned 23 98,219,214 94,352,931 Mark-up / return / interest expensed 24 41,176,686 38,511,161 Net mark-up / return / interest income 57,042,528 55,841,770

Provision against loans and advances - net 10.3 504,901 3,058,621 Reversal of provision against lendings to financial institutions - net 8.7 (15,500) - Provision for diminution in value of investments - net 9.3 891,684 411,056 Bad debts written off directly 10.4 97,781 161,229 1,478,866 3,630,906 Net mark-up / return / interest income after provisions 55,563,662 52,210,864

Non mark-up / return / interest income Fee, commission and brokerage income 12,318,684 12,203,210 Dividend income 3,266,559 3,204,850 Income from dealing in foreign currencies 1,701,016 2,270,980 Gain on sale of securities - net 25 5,364,463 3,228,321 Unrealized (loss) / gain on revaluation of investments classified as held for trading 9.4 (2,184) 9,202 Other income 26 960,104 1,070,444 Total non mark-up / return / interest income 23,608,642 21,987,007 79,172,304 74,197,871

Non mark-up / return / interest expenses Administrative expenses 27 31,903,598 30,896,159 Other provisions - net 28 260,848 79,417 Workers' Welfare Fund 29 922,449 845,507 Other charges 30 69,813 202,103 Total non mark-up / return / interest expenses 33,156,708 32,023,186 Profit before taxation 46,015,596 42,174,685

Taxation - Current 31 14,898,709 15,042,952 Taxation - Prior 31 2,100,381 1,800,541 Taxation - Deferred 31 1,286,394 (395,957) 18,285,484 16,447,536 Profit after taxation 27,730,112 25,727,149

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

Earnings per share - basic and diluted 32 22.65 21.02

The annexed notes from 1 to 48 and annexures form an integral part of these unconsolidated financial statements.

Wajahat Husain Amin Uddin Zameer Mohammed Choudrey, CBE Sir Mohammed Anwar Pervez, OBE, HPk President & Director Director Chairman Chief Executive Officer UNCONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2016

2016 2015 ------(Rupees in '000) ------

Profit after taxation 27,730,112 25,727,149

Other comprehensive income:

Items that will not be reclassified to profit or loss in subsequent periods

Remeasurement loss of defined benefit obligations (107,434) (438,264) Related deferred tax reversal 37,602 153,392 (69,832) (284,872) Items that may be reclassified to profit or loss in subsequent periods

Exchange differences on translation of net investment in foreign branches (720,809) 1,699,457

Other comprehensive income transferred to equity 26,939,471 27,141,734

Items that may be reclassified to profit or loss in subsequent periods

(Deficit) / surplus arising on revaluation of available for sale securities (2,283,241) 8,294,461 Related deferred tax reversal / (charge) 799,135 (2,903,061) (1,484,106) 5,391,400

Total comprehensive income during the year - net of tax 25,455,365 32,533,134

The annexed notes from 1 to 48 and annexures form an integral part of these unconsolidated financial statements.

Wajahat Husain Amin Uddin Zameer Mohammed Choudrey, CBE Sir Mohammed Anwar Pervez, OBE, HPk President & Director Director Chairman Chief Executive Officer UNCONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2016

Note 2016 2015 ------(Rupees in '000) ------CASH FLOW FROM OPERATING ACTIVITIES Profit before taxation 46,015,596 42,174,685 Less: Dividend income 3,266,559 3,204,850 42,749,037 38,969,835 Adjustments: Depreciation on operating fixed assets 1,607,107 1,521,874 Depreciation on Islamic financing against leased assets (Ijarah) 205,186 225,424 Amortization 314,870 386,494 Workers' Welfare Fund 922,449 845,507 Provision for retirement benefits 158,912 572,740 Provision for compensated absences 315,084 268,505 Provision against loans and advances - net 504,901 3,058,621 Reversal of provision against lendings to financial institutions - net (15,500) - Provision for diminution in value of investments - net 891,684 411,056 Reversal of provision in respect of investments disposed off during the year (569,357) (41,569) Provision against off balance sheet items 27,081 6,279 Gain on sale of operating fixed assets - net (44,273) (19,023) Gain on sale of ijarah assets (44,685) (863) Bad debts written-off directly 97,781 161,229 Unrealized loss / (gain) on revaluation of investments classified as held for trading 2,184 (9,202) Provision charge / (reversal) against other assets - net 143,908 (9,249) 4,517,332 7,377,823 47,266,369 46,347,658 (Increase) / decrease in operating assets Lendings to financial institutions (10,058,019) (2,222,630) Held for trading securities 3,606,415 (3,718,477) Advances (55,651,884) (23,860,288) Other assets (excluding advance taxation) 1,031,748 (1,909,088) (61,071,740) (31,710,483) Increase / (decrease) in operating liabilities Bills payable (1,635,317) 3,838,154 Borrowings 38,417,672 110,066,791 Deposits and other accounts 128,651,878 156,152,117 Other liabilities (excluding current taxation) 1,573,196 (845,297) 167,007,429 269,211,765 153,202,058 283,848,940 Payments on account of staff retirement benefits (608,600) (1,218,518) Income taxes paid (21,816,894) (15,942,496) Net cash inflow from operating activities 130,776,564 266,687,926

CASH FLOW FROM INVESTING ACTIVITIES Net investment in securities (93,755,108) (210,531,438) Dividend income received 3,158,032 3,199,400 Investment in operating fixed assets (5,927,402) (3,937,323) Sale proceeds from disposal of operating fixed assets 91,203 49,084 Sale proceeds from disposal of ijarah assets 191,657 72,365 Net cash outflow from investing activities (96,241,618) (211,147,912)

NET CASH OUTFLOW FROM FINANCING ACTIVITIES Dividends paid (16,256,676) (15,942,157) Net cash outflow from financing activities (16,256,676) (15,942,157) Exchange differences on translation of net investment in foreign branches (720,809) 1,699,457

Increase in cash and cash equivalents 17,557,461 41,297,314

Cash and cash equivalents at the beginning of the year 128,870,394 87,573,080 Cash and cash equivalents at the end of the year 33 146,427,855 128,870,394

The annexed notes from 1 to 48 and annexures form an integral part of these unconsolidated financial statements.

Wajahat Husain Amin Uddin Zameer Mohammed Choudrey, CBE Sir Mohammed Anwar Pervez, OBE, HPk President & Director Director Chairman Chief Executive Officer UNCONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED DECEMBER 31, 2016

Capital reserve Statutory Unappropriated Share capital - Exchange Total reserve profit translation

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

Balance as at December 31, 2014 12,241,798 21,851,889 12,278,242 48,217,351 94,589,280

Transactions with owners for the year ended December 31, 2015

Final cash dividend - December 31, 2014 declared subsequent to the year end at Rs.4.0 per share - - - (4,896,719) (4,896,719)

Interim cash dividend - March 31, 2015 declared at Rs.3.0 per share - - - (3,672,539) (3,672,539)

Interim cash dividend - June 30, 2015 declared at Rs.3.0 per share - - - (3,672,539) (3,672,539)

Interim cash dividend - September 30, 2015 declared at Rs.3.0 per share - - - (3,672,539) (3,672,539) - - - (15,914,336) (15,914,336)

Total comprehensive income for the year ended December 31, 2015

Profit after taxation for the year ended December 31, 2015 - - - 25,727,149 25,727,149 Other comprehensive income - net of tax - - 1,699,457 (284,872) 1,414,585 Total comprehensive income for the year ended December 31, 2015 - - 1,699,457 25,442,277 27,141,734

Transfer from surplus on revaluation of fixed assets to unappropriated profit - net of tax - - - 50,383 50,383

Transfer to statutory reserve - 2,572,715 - (2,572,715) -

Balance as at December 31, 2015 12,241,798 24,424,604 13,977,699 55,222,960 105,867,061

Transactions with owners for the year ended December 31, 2016

Final cash dividend - December 31, 2015 declared subsequent to the year end at Rs.4.0 per share - - - (4,896,719) (4,896,719)

Interim cash dividend - March 31, 2016 declared at Rs.3.0 per share - - - (3,672,539) (3,672,539)

Interim cash dividend - June 30, 2016 declared at Rs.3.0 per share - - - (3,672,539) (3,672,539)

Interim cash dividend - September 30, 2016 declared at Rs.3.0 per share - - - (3,672,539) (3,672,539) - - - (15,914,336) (15,914,336)

Total comprehensive income for the year ended December 31, 2016

Profit after taxation for the year ended December 31, 2016 - - - 27,730,112 27,730,112 Other comprehensive income - net of tax - - (720,809) (69,832) (790,641) Total comprehensive income for the year ended December 31, 2016 - - (720,809) 27,660,280 26,939,471

Transfer from surplus on revaluation of fixed assets to unappropriated profit - net of tax - - - 50,377 50,377

Transfer to statutory reserve - 2,773,011 - (2,773,011) -

Balance as at December 31, 2016 12,241,798 27,197,615 13,256,890 64,246,270 116,942,573

Appropriations recommended by the Board of Directors subsequent to the year ended December 31, 2016 are disclosed in note 46 to these unconsolidated financial statements. The annexed notes from 1 to 48 and annexures form an integral part of these unconsolidated financial statements.

Wajahat Husain Amin Uddin Zameer Mohammed Choudrey, CBE Sir Mohammed Anwar Pervez, OBE, HPk President & Director Director Chairman Chief Executive Officer NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

1. STATUS AND NATURE OF BUSINESS

United Bank Limited (the Bank) is a banking company incorporated in Pakistan and is engaged in commercial banking and related services. The Bank's registered office and principal office are situated at UBL Building, Jinnah Avenue, Blue Area, Islamabad and at UBL Head Office, I. I. Chundrigar Road, Karachi respectively. The Bank operates 1,341 (2015: 1,312) branches inside Pakistan including 47 (2015: 41) Islamic Banking branches and 2 (2015: 1) branches in Export Processing Zones. The Bank also operates 18 (2015: 18) branches outside Pakistan as at December 31, 2016. The Bank is a subsidiary of Bestway (Holdings) Limited which is incorporated in the United Kingdom.

The Bank's ordinary shares are listed on Pakistan Stock Exchange. Its Global Depository Receipts (GDRs) are on the list of the UK Listing Authority and the London Stock Exchange Professional Securities Market. These GDRs are also eligible for trading on the International Order Book System of the London Stock Exchange. Further, the GDRs constitute an offering in the United States only to qualified institutional buyers in reliance on Rule 144A under the US Securities Act of 1933 and an offering outside the United States in reliance on Regulation S.

2. BASIS OF PRESENTATION

2.1 In accordance with the directives of the Federal Government regarding the shifting of the banking system to Islamic modes, the State Bank of Pakistan (SBP) has issued various circulars from time to time. Permissible forms of trade-related modes of financing include purchase of goods by banks from their customers and immediate resale to them at appropriate mark-up in price on deferred payment basis. The purchases and sales arising under these arrangements are not reflected in these unconsolidated financial statements as such, but are restricted to the amount of facility actually utilized and the appropriate portion of mark-up thereon. The Islamic Banking branches of the Bank have complied with the requirements set out under the Islamic Financial Accounting Standards issued by the Institute of Chartered Accountants of Pakistan (ICAP) and notified under the provisions of the Companies Ordinance, 1984.

2.2 Key financial figures of the Islamic Banking branches are disclosed in note 44 to these unconsolidated financial statements.

3. STATEMENT OF COMPLIANCE

3.1 These unconsolidated financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan, the requirements of the Companies Ordinance, 1984, the Banking Companies Ordinance, 1962 and the directives issued by the Securities and Exchange Commission of Pakistan (SECP) and the SBP. Approved accounting standards comprise of International Financial Reporting Standards (IFRS) and interpretations issued by the International Accounting Standards Board and Islamic Financial Accounting Standards (IFAS) issued by the ICAP. Wherever the requirements of the Companies Ordinance, 1984, the Banking Companies Ordinance, 1962 or the directives issued by the SECP and the SBP differ with the requirements of IFRS or IFAS, the requirements of the Companies Ordinance, 1984, the Banking Companies Ordinance, 1962 or the said directives prevail.

3.2 The SBP, vide BSD Circular letter No. 10, dated August 26, 2002 has deferred the applicability of International Accounting Standard 39, Financial Instruments: Recognition and Measurement and International Accounting Standard 40, Investment Property for banking companies till further instructions. Further, according to the notification of the SECP issued vide SRO 411(I)/2008 dated April 28, 2008, IFRS 7, Financial Instruments: Disclosures has not been made applicable for banks. Accordingly, the requirements of these standards have not been considered in the preparation of these unconsolidated financial statements. However, investments have been classified and valued in accordance with the requirements of various circulars issued by the SBP. Further, segment information is being disclosed in accordance with SBP’s prescribed format as per BSD circular 4 dated Feb 17, 2006 which prevails over the requirements specified in IFRS 8.

3.3 These unconsolidated financial statements represent the separate financial statements of the Bank. The consolidated financial statements of the Bank and its subsidiaries are presented separately.

3.4 Standards, interpretations and amendments to approved accounting standards that are not yet effective

The following revised standards, amendments and interpretations with respect to the approved accounting standards would be effective from the dates mentioned below against the respective standard or interpretation:

Effective date (annual periods Standard, Interpretation or Amendment beginning on or after)

IFRS 2 - Share-based Payment - (Amendments) January 01, 2018 IFRS 12 - Disclosure of Interest in Other Entities - (Improvement) January 01, 2017

6 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

Effective date (annual periods Standard, Interpretation or Amendment beginning on or after)

IAS 12 - Income Taxes - (Amendments) January 01, 2017 IAS 7 - Statement of cash flow - (Amendments) January 01, 2017 IAS 28 - Investments in associates and joint ventures - (Improvement) January 01, 2018 IFRIC 22- Foreign Currency Transactions and Advance Consideration January 01, 2018

The Bank expects that the adoption of above amendments and interpretations will not affect its financial statements in the period of initial application.

The following new standards have been issued by the IASB, but have not yet been notified by the SECP for application in Pakistan.

IASB Effective date (annual Standard or Interpretation periods beginning on or after)

IFRS 9 - Financial Instruments: Classification and Measurement January 01, 2018 IFRS 15 - Revenue from contracts with customers January 01, 2018

4. BASIS OF MEASUREMENT

4.1 Accounting convention

These unconsolidated financial statements have been prepared under the historical cost convention except that certain operating fixed assets and non-banking assets acquired in satisfaction of claims have been stated at revalued amounts and certain investments and derivative financial instruments have been stated at fair value.

4.2 Critical accounting estimates and judgments

The preparation of these unconsolidated financial statements in conformity with approved accounting standards requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and income and expenses. It also requires management to exercise judgment in the application of its accounting policies. The estimates and assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. These estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.

Significant accounting estimates and areas where judgments were made by management in the application of accounting policies are as follows:

i) classification of investments (notes 5.3 and 9)

ii) provision against investments (notes 5.3 and 9.3), lendings to financial institutions (note 8.7) and advances (notes 5.4 and 10.3)

iii) income taxes (notes 5.7 and 31)

iv) staff retirement benefits (notes 5.9 and 35)

v) fair value of derivatives (notes 5.14.2 and 18.3)

vi) operating fixed assets, revaluation, depreciation and amortization (notes 5.5 and 11)

vii) impairment (note 5.6)

viii) valuation of non-banking assets acquired in satisfaction of claims (note 5)

7 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

5. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies adopted in the preparation of these unconsolidated financial statements are consistent with those of the previous financial year, except for the following:

Non banking assets acquired in satisfaction of claims

Effective January 1, 2016, the Bank has changed its accounting policy for recording of non-banking assets acquired in satisfaction of claims to comply with the requirements of the 'Regulations for Debt Property Swap' (the regulations) issued by SBP vide its BPRD Circular No. 1 of 2016, dated January 1, 2016. In line with the guidance provided in the Regulations, the non-banking assets acquired in satisfaction of claims are carried at revalued amounts less accumulated depreciation. These assets are revalued by professionally qualified valuers with sufficient regularity to ensure that their net carrying value does not differ materially from their fair value. A surplus arising on revaluation of property is credited to the 'surplus on revaluation of non-banking assets' account and any deficit arising on revaluation is taken to profit and loss account directly. Legal fees, transfer costs and direct costs of acquiring title to property are charged to profit and loss account and not capitalised. Previously, non-banking assets acquired in satisfaction of claims were carried at cost less impairment, if any. Had the accounting policy not been changed, non-banking assets (included in Other Assets in the statement of financial position) would have been lower by Rs 169.861 million while surplus on revaluation of assets and related deferred tax would have been lower by Rs 110.410 million and Rs 59.451 million respectively.

5.1 Cash and cash equivalents

Cash and cash equivalents for the purpose of the cash flow statement consist of cash and balances with treasury banks and balances with other banks.

5.2 Lendings to / borrowings from financial institutions

The Bank enters into transactions of reverse repos and repos at contracted rates for a specified period of time. These are recorded as under:

5.2.1 Purchase under resale agreements

Securities purchased under agreement to resell (reverse repo) are included in lendings to financial institutions. The differential between the purchase price and the resale price is amortized over the period of the agreement and recorded as income.

Securities held as collateral are not recognized in the unconsolidated financial statements, unless these are sold to third parties, in which case the obligation to return them is recorded at fair value as a trading liability under borrowings from financial institutions.

5.2.2 Sale under repurchase agreements

Securities sold subject to a repurchase agreement (repo) are retained in the unconsolidated financial statements as investments and the counterparty liability is included in borrowings from financial institutions. The differential between the sale price and the repurchase price is amortized over the period of the agreement and recorded as an expense.

5.2.3 Bai Muajjal

The securities sold under Bai Muajjal agreement are derecognised on the date of disposal. Receivable against such sale is recognised at the agreed sale price. The difference between the sale price and the carrying value on the date of disposal is taken to income on straightline basis.

5.3 Investments

Investments of the Bank, other than investments in subsidiaries and associates, are classified as held for trading, held to maturity and available for sale.

Held for trading

These are securities which are either acquired for generating a profit from short-term fluctuations in market prices, interest rate movements and dealer's margin, or are securities included in a portfolio in which a pattern of short term profit taking exists.

Held to maturity

These are securities with fixed or determinable payments and fixed maturities, in respect of which the Bank has the positive intent and ability to hold to maturity.

8 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

Available for sale

These are investments, other than those in subsidiaries and associates, that do not fall under the held for trading or held to maturity categories.

Initial measurement

All “regular way” purchases and sales of investments are recognized on the trade date, i.e., the date that the Bank commits to purchase or sell the investment. Regular way purchases or sales are purchases or sales of investments that require delivery of investments within the time frame generally established by regulation or convention in the market place.

Investments are initially recognized at fair value which, in the case of investments other than held for trading, includes transaction costs associated with the investments. Transaction costs on investments held for trading are expensed as incurred.

Subsequent measurement

Held for trading

These are measured at subsequent reporting dates at fair value. Gains and losses on re-measurement are included in the profit and loss account.

Held to maturity

These are measured at amortized cost using the effective interest rate method, less any impairment loss recognized to reflect irrecoverable amounts.

Available for sale

Quoted securities classified as available for sale investments are measured at subsequent reporting dates at fair value. Any surplus or deficit arising thereon is kept in a separate account shown in the statement of financial position below equity and is taken to the profit and loss account when realized upon disposal or when the investment is considered to be impaired.

Unquoted equity securities are valued at the lower of cost and break-up value. The break-up value of these securities is calculated with reference to the net assets of the investee company as per the latest available audited financial statements. A decline in the carrying value is charged to the profit and loss account. A subsequent increase in the carrying value, upto the cost of the investment, is credited to the profit and loss account. Investments in other unquoted securities are valued at cost less impairment, if any.

Provisions for diminution in the value of term finance certificates and Sukuks are made as per the ageing criteria prescribed by the Prudential Regulations issued by the SBP. Provisions for diminution in the value of other securities are made for impairment, if any.

Investments in Subsidiaries and Associates

Investments in subsidiaries and associates are valued at cost less impairment, if any. A reversal of an impairment loss on subsidiaries and associates is recognized in the profit and loss account as it arises provided the increased carrying value does not exceed cost.

Gains and losses on disposal of investments in subsidiaries and associates are included in the profit and loss account.

5.4 Advances

Advances are stated net of specific and general provisions which are charged to the profit and loss account. Specific provisions against domestic advances and general provision against domestic loans to small enterprises and consumer loans are determined on the basis of the Prudential Regulations and other directives issued by the SBP. General and specific provisions pertaining to overseas advances are made in accordance with the requirements of the regulatory authorities of the respective countries. If circumstances warrant, the Bank, from time to time, makes general provisions against weaknesses in its portfolio on the basis of management's estimation.

9 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

Advances are written off when there is no realistic prospect of recovery. The amount so written off is a book entry and does not necessarily prejudice the Bank's right of recovery against the customer.

The Bank determines write-offs in accordance with the criteria prescribed by the SBP vide BPRD Circular No. 06 dated June 05, 2007.

5.4.1 Islamic financings and related assets

Receivables under Murabaha financing represent cost price plus an agreed mark-up on deferred sale arrangement. Markup income is recognised on a straight line basis over the period of the instalments.

Ijarah financing represents arrangements whereby the Bank (being the owner of assets) transfers its usufruct to its customers for an agreed period at an agreed consideration. Assets leased out under Ijarah are stated at cost less accumulated depreciation and accumulated impairment losses, if any. These are depreciated over the term of the lease. Ijarah income is recognized on an accrual basis.

Diminishing Musharaka is partnership agreement between the Bank and its customer for financing vehicle or plant and machinery. The receivable is recorded to the extent of Bank's share in the purchase of asset. Income is recognised on accrual basis

5.5 Operating fixed assets and depreciation

5.5.1 Tangible

Property and equipment, other than land (which is not depreciated) and capital work-in-progress, are stated at cost or revalued amount less accumulated depreciation and accumulated impairment losses (if any). Land is carried at revalued amount less impairment losses while capital work-in-progress is stated at cost less impairment losses. The cost and the accumulated depreciation of property and equipment of foreign branches include exchange differences arising on currency translation at the year-end rates of exchange.

Depreciation is calculated so as to write off the depreciable amount of the assets over their expected useful lives at the rates specified in note 11.2 to these unconsolidated financial statements. The depreciation charge for the year is calculated on a straight line basis after taking into account the residual value, if any. The residual values and useful lives are reviewed and adjusted, if appropriate, at each statement of financial position date.

Depreciation on additions is charged from the month the asset is available for use. No depreciation is charged in the month of disposal.

Land and buildings are revalued by professionally qualified valuers with sufficient regularity to ensure that their net carrying value does not differ materially from their fair value. A surplus arising on revaluation is credited to the surplus on revaluation of fixed assets account. Any deficit arising on subsequent revaluation of fixed assets is adjusted against the balance in the above mentioned surplus account as allowed under the provisions of the Companies Ordinance, 1984. The surplus on revaluation of fixed assets, to the extent of incremental depreciation, is transferred to unappropriated profit.

Gains and losses on sale of fixed assets are included in the profit and loss account, except that the related surplus on revaluation of fixed assets (net of deferred tax) is transferred directly to unappropriated profit.

Major renewals and improvements are capitalized and the assets so replaced, if any, are retired. Normal repairs and maintenance are charged to the profit and loss account as and when incurred.

5.5.2 Intangible assets

Intangible assets are stated at cost less accumulated amortization and accumulated impairment losses, if any. The cost and the accumulated amortization of intangible assets of foreign branches include exchange differences arising on currency translation at the year-end rates of exchange. Amortization is calculated so as to write off the amortizable amount of the assets over their expected useful lives at the rates specified in note 11.3 to these unconsolidated financial statements. The amortization charge for the year is calculated on a straight line basis after taking into account the residual value, if any. The residual values and useful lives are reviewed and adjusted, if appropriate, at each statement of financial position date. Amortization on additions is charged from the month the asset is available for use. No amortization is charged in the month of disposal.

Gains and losses on sale of intangible assets are included in the profit and loss account.

10 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

5.6 Impairment

Impairment of available for sale equity investments

Available for sale equity investments are impaired when there has been a significant or prolonged decline in their fair value below their cost. The determination of what is significant or prolonged requires judgment. In making this judgment, the Bank evaluates, among other factors, the normal volatility in share price.

Impairment of investments in subsidiaries and associates

The Bank considers that a decline in the recoverable value of the investment in a subsidiary or an associate below its cost may be evidence of impairment. Recoverable value is calculated as the higher of fair value less costs to sell and value in use. An impairment loss is recognized when the recoverable value falls below the carrying value and is charged to the profit and loss account. A subsequent reversal of an impairment loss, upto the cost of the investment in the subsidiary or the associate, is credited to the profit and loss account.

Impairment in non-financial assets (excluding deferred tax)

The carrying amounts of non-financial assets are reviewed at each reporting date for impairment whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be recoverable. If such indication exists, and where the carrying value exceeds the estimated recoverable amount, assets are written down to their recoverable amount. The resulting impairment loss is charged to the profit and loss account except for an impairment loss on revalued assets, which is adjusted against the related revaluation surplus to the extent that the impairment loss does not exceed the revaluation surplus.

5.7 Taxation

5.7.1 Current

Provision for current taxation is based on taxable income for the year determined in accordance with the prevailing laws and at the prevailing rates for taxation on income earned by the Bank.

5.7.2 Prior years

The taxation charge for prior years represents adjustments to the tax charge relating to prior years, arising from assessments / changes in laws and changes in estimates made during the current year.

5.7.3 Deferred

Deferred tax is recognized using the balance sheet method on all major temporary differences between the amounts attributed to assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is calculated at the rates that are expected to apply to the period when the differences are expected to reverse, based on tax rates that have been enacted or substantively enacted at the statement of financial position date.

Deferred tax assets are recognized only to the extent that it is probable that future taxable profits will be available against which the assets can be utilized.

The carrying amount of deferred tax assets is reviewed at each statement of financial position date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be utilized.

The Bank also recognizes deferred tax asset / liability on the deficit / surplus on revaluation of fixed assets / non-banking assets acquired in satisfaction of claims and securities which is adjusted against the related deficit / surplus in accordance with the requirements of IAS 12, Income Taxes.

5.8 Provisions

Provisions are recognized when the Bank has a legal or constructive obligation as a result of past events which makes it probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made.

11 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

Provision against identified non-funded losses is recognized when intimated and reasonable certainty exists that the Bank will be required to settle the obligation. The provision is charged to the profit and loss account net of expected recovery and the obligation is classified under other liabilities.

Provisions are reviewed at each statement of financial position date and are adjusted to reflect the current best estimate.

5.9 Staff retirement and other benefits

5.9.1 Staff retirement benefit schemes

The Bank operates the following staff retirement schemes for its employees:

a) For new employees and for those who opted for the below mentioned conversion option introduced in 2001, the Bank operates:

- an approved contributory provident fund (defined contribution scheme); and - an approved gratuity scheme (defined benefit scheme).

b) For employees who have not opted for the conversion option introduced in 2001, the Bank operates:

- an approved non-contributory provident fund in lieu of the contributory provident fund; and - an approved funded pension scheme, introduced in 1986 (defined benefit scheme).

In 2001, the Bank modified the pension scheme and introduced a conversion option for employees covered under option (b) above to move to option (a). This conversion option ceased on December 31, 2003.

The Bank also operates benevolent fund for all its eligible employees (defined benefit scheme).

Annual contributions towards defined benefit schemes are made on the basis of actuarial advice using the Projected Unit Credit Method.

For the defined contribution scheme, the Bank pays contributions to the fund on a periodic basis. The Bank has no further payment obligation once the contributions have been paid. The contributions are recognized as an expense when the obligation to make payments to the fund has been established. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in future payments is available.

5.9.2 Other benefits

a) Employees' compensated absences

The Bank makes provisions for compensated vested and non-vested absences accumulated by its eligible employees on the basis of actuarial advice under the Projected Unit Credit Method.

b) Post retirement medical benefits (defined benefit scheme)

The Bank provides post retirement medical benefits to eligible retired employees. Provision is made on the basis of actuarial advice under the Projected Unit Credit Method.

c) Employee motivation and retention scheme

The Bank has a long term motivation and retention scheme for its employees. The liability of the Bank in respect of the scheme for each year, if any, is fixed, and is accounted for in the year to which the scheme relates.

5.9.3 Remeasurement of defined benefit obligations

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in other comprehensive income when they occur with no subsequent recycling through the profit and loss account.

12 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

Remeasurement gains and losses pertaining to long term compensated absences are recognized in the profit and loss account immediately.

5.10 Subordinated loans

Subordinated loans are initially recorded at the amount of proceeds received. Mark-up accrued on subordinated loans is recognised separately as part of other liabilities and is charged to the profit and loss account over the period on an accrual basis.

5.11 Borrowings / deposits

a) Borrowings / deposits are recorded at the amount of proceeds received.

b) The cost of borrowings / deposits is recognized on an accrual basis as an expense in the period in which it is incurred.

5.12 Revenue recognition

Revenue is recognized to the extent that the economic benefits associated with a transaction will flow to the Bank and the revenue can be reliably measured. The following recognition criteria must be met before revenue is recognized.

5.12.1 Advances and investments

Mark-up / return / interest on performing advances and investments is recognized on a time proportionate basis over the term of the advances and investments that takes into account the effective yield of the asset. Where debt securities are purchased at a premium or discount, such premium / discount is amortized through the profit and loss account over the remaining period of maturity of the debt securities.

Interest or mark-up recoverable on non-performing or classified advances and investments is recognized on a receipt basis.

5.12.2 Dividend income

Dividend income is recognised when the right to receive the dividend is established.

5.12.3 Fee, brokerage and commission income

Fee, brokerage and commission income is recognized on an accrual basis.

5.12.4 Grants

Grants received are recorded as income when the right to receive the grant, based on the related expenditure having been incurred, has been established.

5.13 Foreign currencies

5.13.1 Functional and presentation currency

Items included in these unconsolidated financial statements are measured using the currency of the primary economic environment in which the Bank operates. These unconsolidated financial statements are presented in Pakistani Rupees, which is the Bank's functional and presentation currency.

5.13.2 Foreign currency transactions

Transactions in foreign currencies are translated to rupees at the foreign exchange rates prevailing on the transaction date. Monetary assets and liabilities in foreign currencies are expressed in rupee terms at the rates of exchange prevailing at the statement of financial position date. Forward foreign exchange contracts and foreign bills purchased are valued in rupees at the forward foreign exchange rates applicable to their respective maturities.

13 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

Non-monetary assets and liabilities in foreign currencies are expressed in rupee terms at the rates of exchange prevailing at the date of initial recognition of the non-monetary assets / liabilities.

5.13.3 Foreign operations

The assets and liabilities of foreign operations are translated to rupees at exchange rates prevailing at the statement of financial position date. The results of foreign operations are translated at the average rates of exchange for the year.

5.13.4 Translation gains and losses

Translation gains and losses are taken to the profit and loss account, except those arising on translation of the net investment in foreign branches which are taken to capital reserves (Exchange Translation Reserve) until the disposal of the net investment, at which time these are recognised in the profit and loss account.

5.13.5 Contingencies and commitments

Commitments for outstanding forward foreign exchange contracts are disclosed in these unconsolidated financial statements at contracted rates. Contingent liabilities / commitments denominated in foreign currencies are expressed in rupee terms at the rates of exchange prevailing at the statement of financial position date.

5.14 Financial instruments

5.14.1 Financial assets and liabilities

Financial assets and liabilities carried on the statement of financial position include cash and bank balances, lendings to financial institutions, investments, advances, certain receivables, bills payable, borrowings from financial institutions, deposits, subordinated loans and certain payables. The particular recognition methods adopted for significant financial assets and financial liabilities are disclosed in the individual policy notes associated with them.

5.14.2 Derivative financial instruments

Derivative financial instruments are initially recognized at fair value on the date on which the derivative contract is entered into and are subsequently re-measured at fair value using appropriate valuation techniques. All derivative financial instruments are carried as assets when their fair value is positive and liabilities when their fair value is negative. Any change in the fair value of derivative financial instruments during the period is taken to the profit and loss account.

5.14.3 Hedge accounting

The Bank makes use of derivative instruments to manage exposures to interest rate, foreign currency and credit risks. In order to manage particular risks, the Bank may undertake a hedge. The Bank applies hedge accounting for transactions which meet the specified criteria.

At the inception of the hedging relationship, the Bank formally documents the relationship between the hedged item and the hedging instrument, including the nature of the risk, the objective and strategy for undertaking the hedge and the method that will be used to assess the effectiveness of the hedging relationship. A formal assessment is also undertaken to ascertain whether the hedging instrument is expected to be highly effective in offsetting the designated risk in the hedged item. A hedge is regarded as highly effective if, during the period for which the hedge is designated, changes in the fair value or cash flows attributable to the hedged item are expected to be offset by between 80% to 125% by corresponding changes in the fair value or cash flows attributable to the hedging instrument.

Cash flow hedges

For qualifying cash flow hedges, the fair value gain or loss associated with the effective portion of the cash flow hedge is recognised initially in the statement of changes in equity, and recycled through the profit and loss account in the periods when the hedged item will affect profit or loss. Any gain or loss on the ineffective portion of the hedging instrument is recognised in the profit and loss account immediately.

When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the hedged item is ultimately recognised in the profit and loss account.

14 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

5.14.4 Off setting

Financial assets and financial liabilities are set off and the net amount is reported in the unconsolidated financial statements when there is a legally enforceable right to set off and the Bank intends to either settle on a net basis, or to realize the assets and to settle the liabilities simultaneously.

5.15 Segment reporting

A segment is a distinguishable component of the Bank that is engaged either in providing particular products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), and is subject to risks and rewards that are different from those of other segments.

5.15.1 Business segments

(a) Corporate finance

Corporate finance includes services provided in connection with mergers and acquisitions, project finance and the underwriting / arrangement of debt and equity instruments through syndications, Initial Public Offerings and private placements.

(b) Trading and sales

Trading and sales includes fixed income, equity, foreign exchange, credit, funding, own position securities, lendings and borrowings and derivatives for hedging and market making.

(c) Retail banking

Retail banking includes retail and consumer lending and deposits, banking services, cards and branchless banking.

(d) Commercial banking

Commercial banking includes project finance, working capital finance, trade finance, import and export, factoring, leasing, lending, deposits and guarantees.

(e) Others

Others includes functions which cannot be classified in any of the above segments.

5.15.2 Geographical segments

The Bank operates in following geographical regions:

- Pakistan - Middle East - United States of America - Export Processing Zones in Karachi and Sialkot

5.16 Dividends and appropriations to reserves

Dividends and appropriations to reserves are recorded in the year in which these are approved, except appropriations required by law which are recorded in the period to which they pertain.

5.17 Earnings per share

The Bank presents basic and diluted earnings per share (EPS). Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Bank by the weighted average number of ordinary shares outstanding during the year.

15 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

Note 2016 2015 6. CASH AND BALANCES WITH TREASURY BANKS ------(Rupees in '000) ------

In hand Local currency 13,072,593 8,776,285 Foreign currency 4,896,410 4,113,207 17,969,003 12,889,492 With State Bank of Pakistan in Local currency current accounts 6.1 33,315,897 24,910,033 Foreign currency current accounts 6.2 2,307,913 2,380,015 Foreign currency deposit account 6.3 6,841,899 6,945,540 42,465,709 34,235,588 With other central banks in Foreign currency current accounts 6.4 31,773,168 32,172,907 Foreign currency deposit accounts 6.5 1,775,653 1,888,726 33,548,821 34,061,633 With National Bank of Pakistan in local currency current accounts 37,422,940 30,641,342 National Prize Bonds 100,388 183,221 131,506,861 112,011,276

6.1 This represents current accounts maintained with the SBP under the Cash Reserve Requirement of section 22 of the Banking Companies Ordinance, 1962.

6.2 This represents a US Dollar settlement account maintained with the SBP and current accounts maintained with the SBP to comply with statutory requirements.

6.3 This represents account maintained with the SBP to comply with the Special Cash Reserve requirement. The return on this account is declared by the SBP on a monthly basis and, as at December 31, 2016, carries mark-up at the rate of 0.00% (2015: 0.00%) per annum.

6.4 Deposits with other central banks are maintained to meet the minimum cash reserves and capital requirements pertaining to the foreign branches of the Bank.

6.5 This represents placement with overseas central banks and carries mark-up at the rate of 0.75% (2015: 0.50%) per annum.

Note 2016 2015 ------(Rupees in '000) ------7. BALANCES WITH OTHER BANKS

Inside Pakistan In current accounts - 14,889 In deposit accounts 7.1 2,825,007 2,930,007 2,825,007 2,944,896

Outside Pakistan In current accounts 5,342,117 6,425,982 In deposit accounts 7.2 6,753,870 7,488,240 12,095,987 13,914,222

14,920,994 16,859,118

7.1 These carry mark-up at rates ranging from 5.80% to 5.95% (2015: 6.00% to 6.30%) per annum.

7.2 These carry mark-up at rates ranging from 0.10% to 1.84% (2015: 0.10% to 1.90%) per annum and include balances amounting to Rs. 1,004.146 million (2015: Rs. 225.193 million), maintained with an overseas bank against the statutory reserves requirement of a foreign branch.

16 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

Note 2016 2015 8. LENDINGS TO FINANCIAL INSTITUTIONS ------(Rupees in '000) ------

Call money lending 8.2 1,500,000 1,300,000 Repurchase agreement lendings 8.3 - 976,841 Bai Muajjal receivable from other financial institutions 8.4 11,226,452 - Other lendings to financial institutions 8.5 & 8.6 22,247,898 22,640,412 34,974,350 24,917,253 Provision against lendings to financial institutions 8.7 (806,063) (822,485) 34,168,287 24,094,768 8.1 Particulars of lendings to financial institutions - gross

In local currency 19,335,529 5,496,662 In foreign currencies 15,638,821 19,420,591 34,974,350 24,917,253

8.2 This represents unsecured lending carrying mark-up at a rate 5.25% per annum (2015: 4.50% to 5.80%per annum) and is due to mature by January 2017.

8.3 Securities held as collateral against repurchase agreement lendings

2016 2015 Held by Bank Further given Total Held by Bank Further given as Total as collateral / collateral / sold sold

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

Market Treasury Bills - - - 976,841 - # 976,841

8.4 This represents Bai Muajjal agreements entered into with various financial institutions whereby the Bank has sold sukuks having carrying value of Rs. 11,073.312 million on deferred payment basis. The average return on these transactions is 5.60%. The balances are due to mature latest by March 2017.

8.5 Lendings pertaining to domestic operations carry mark-up at rates ranging from 0.00% to 8.14% per annum (2015: 0.00% to 8.80% per annum) and are due to mature latest by February 2022. Lendings pertaining to overseas operations carry mark-up at rates ranging from 1.20% to 4.13% per annum (2015: 0.00% to 4.49% per annum) and are due to mature latest by July 2021.

8.6 This includes an unsecured subordinated loan amounting to Rs. 257.916 million (2015: Rs. 311.468 million) to United National Bank Limited (UBL UK), a subsidiary, and is due to mature by October 2018. The loan carries mark-up at a rate of six months LIBOR + 2% per annum payable semi-annually, with principal to be paid at maturity. The right of the Bank is subordinated as to the receipt of principal and mark-up to all other indebtedness of United Bank UK (including deposits).

8.7 This represents provision made against lendings to financial institutions with movement as follows:

2016 2015 ------(Rupees in '000) ------

Opening balance 822,485 795,242 Exchange adjustments (922) 27,243

Reversals for the year (15,500) -

Closing balance 806,063 822,485

17 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

9. INVESTMENTS 2016 2015 Note Held by Given as Total Held by Given as Total 9.1 Investments by type Bank collateral Bank collateral ------(Rupees in '000) ------Held for trading securities Market Treasury Bills 8,120,078 - 8,120,078 9,757,289 - 9,757,289 Pakistan Investment Bonds 154,805 - 154,805 2,095,573 - 2,095,573 Ordinary shares of listed companies - - - 19,234 - 19,234 8,274,883 - 8,274,883 11,872,096 - 11,872,096 Available for sale securities Market Treasury Bills 25,117,903 47,933,801 73,051,704 54,047,186 894,235 54,941,421 Pakistan Investment Bonds 184,088,469 96,854,633 280,943,102 153,364,754 111,285,139 264,649,893 Government of Pakistan Sukuk 7,233,271 - 7,233,271 9,909,514 - 9,909,514 Government of Pakistan Eurobonds 14,053,787 - 14,053,787 14,114,386 - 14,114,386 Ordinary shares of listed companies 16,007,107 - 16,007,107 19,310,549 - 19,310,549 Preference shares 372,636 - 372,636 434,765 - 434,765 Ordinary shares of unlisted companies 243,084 - 243,084 243,087 - 243,087 Investment in REIT 458,590 - 458,590 458,590 - 458,590 Term Finance Certificates 556,284 - 556,284 1,371,162 - 1,371,162 Foreign bonds - sovereign 19,250,876 - 19,250,876 17,232,964 - 17,232,964 Foreign bonds - others 9,500,569 - 9,500,569 10,782,176 - 10,782,176 276,882,576 144,788,434 421,671,010 281,269,133 112,179,374 393,448,507 Held to maturity securities Market Treasury Bills 26,968,740 - 26,968,740 33,700,017 - 33,700,017 Pakistan Investment Bonds 289,522,875 - 289,522,875 220,168,425 - 220,168,425 Government of Pakistan Eurobonds 6,897,076 - 6,897,076 7,670,645 - 7,670,645 Government of Pakistan Sukuk 683,000 - 683,000 - - - Other Federal Government Securities - - - 5,391,120 - 5,391,120 Term Finance Certificates 4,715,333 - 4,715,333 5,402,573 - 5,402,573 Sukuks 9,024,950 - 9,024,950 4,234,531 - 4,234,531 Participation Term Certificates 2,795 - 2,795 2,795 - 2,795 Debentures 2,266 - 2,266 2,266 - 2,266 Foreign bonds - sovereign 6,608,534 - 6,608,534 1,809,871 - 1,809,871 Foreign bonds - others 357,609 - 357,609 227,179 - 227,179 Recovery note 322,399 - 322,399 322,839 - 322,839 CDC SAARC Fund 228 - 228 228 - 228 345,105,805 - 345,105,805 278,932,489 - 278,932,489 Associates United Growth and Income Fund 419,308 - 419,308 419,308 - 419,308 UBL Liquidity Plus Fund 10,079 - 10,079 10,079 - 10,079 UBL Money Market Fund 9,850 - 9,850 9,850 - 9,850 UBL Retirement Savings Fund 30,000 - 30,000 120,000 - 120,000 UBL Principal Protected Fund - III - - - 200,000 - 200,000 UBL Government Securities Fund 2,699,175 - 2,699,175 2,699,175 - 2,699,175 UBL Gold Fund 100,000 - 100,000 100,000 - 100,000 UBL Asset Allocation Fund 680,000 - 680,000 500,000 - 500,000 Al Ameen Islamic Cash Fund 10,470 - 10,470 1,010,470 - 1,010,470 Al Ameen Islamic Aggressive Income Fund 25,944 - 25,944 25,944 - 25,944 Al Ameen Islamic Sovereign Fund 50,000 - 50,000 50,000 - 50,000 Al Ameen Islamic Retirement Savings Fund - - - 90,000 - 90,000 Al Ameen Islamic Principal Preservation Fund – III - - - 100,000 - 100,000 Al Ameen Islamic Principal Preservation Fund – IV - - - 100,000 - 100,000 Al Ameen Islamic Principal Preservation Fund – V - - - 100,000 - 100,000 Al Ameen Islamic Asset Allocation Fund 100,000 - 100,000 100,000 - 100,000 Al Ameen Islamic Financial Planning Fund 504,690 - 504,690 200,000 - 200,000 UBL Insurers Limited 240,000 - 240,000 240,000 - 240,000 Khushhali Bank Limited 832,485 - 832,485 832,485 - 832,485 Oman United Exchange Company, Muscat 6,981 - 6,981 6,981 - 6,981 DHA Cogen Limited 9.7 ------5,718,982 - 5,718,982 6,914,292 - 6,914,292 Subsidiaries United National Bank Limited (UBL UK) 2,855,223 - 2,855,223 2,855,223 - 2,855,223 UBL (Switzerland) AG 589,837 - 589,837 589,837 - 589,837 UBL Fund Managers Limited 100,000 - 100,000 100,000 - 100,000 UBL Bank (Tanzania) Limited 1,322,014 - 1,322,014 1,322,014 - 1,322,014 United Executors and Trustees Company Ltd. 30,100 - 30,100 30,100 - 30,100 4,897,174 - 4,897,174 4,897,174 - 4,897,174 640,879,420 144,788,434 785,667,854 583,885,184 112,179,374 696,064,558 Provision for diminution in value of investments 9.3 (2,428,208) - (2,428,208) (2,132,692) - (2,132,692)

Investments - net of provision 638,451,212 144,788,434 783,239,646 581,752,492 112,179,374 693,931,866 Surplus on revaluation of available for sale securities 20.2 13,646,446 9,647,338 23,293,784 14,338,740 11,238,285 25,577,025 (Deficit) / surplus on revaluation of held for trading securities 9.4 (2,184) - (2,184) 9,202 - 9,202

Total investments 652,095,474 154,435,772 806,531,246 596,100,434 123,417,659 719,518,093

18 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

Note 2016 2015 ------(Rupees in '000) ------9.2 Investments by segment

Federal Government Securities Market Treasury Bills 96,090,512 84,622,830 Pakistan Investment Bonds 570,620,782 486,913,891 Government of Pakistan Sukuk 7,916,271 9,909,514 Government of Pakistan Eurobonds 20,950,863 21,785,031 Other Federal Government Securities - 5,391,120 695,578,428 608,622,386

Foreign Securities Market Treasury Bills 12,050,010 13,775,897 Sovereign bonds 25,859,410 19,042,835 CDC SAARC Fund 228 228 Recovery note 322,399 322,839 Other bonds 9,858,178 11,009,355 48,090,225 44,151,154

Ordinary shares Listed companies 16,007,107 19,329,783 Unlisted companies 243,084 243,087 16,250,191 19,572,870

Preference shares 372,636 434,765

Term Finance Certificates Listed 1,179,803 1,180,236 Unlisted 4,091,814 5,593,499 5,271,617 6,773,735

Sukuks 9,024,950 4,234,531

Debentures 2,266 2,266

Participation Term Certificates 2,795 2,795

Investment in REIT 458,590 458,590

Investments in subsidiaries and associates 10,616,156 11,811,466

Total investments at cost 785,667,854 696,064,558

Provision for diminution in value of investments 9.3 (2,428,208) (2,132,692)

Investments - net of provision 783,239,646 693,931,866

Surplus on revaluation of available for sale securities 20.2 23,293,784 25,577,025 (Deficit) / surplus on revaluation of held for trading securities 9.4 (2,184) 9,202

Total investments 806,531,246 719,518,093

19 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

2016 2015 ------(Rupees in '000) ------9.3 Provision for diminution in value of investments

9.3.1 Opening balance 2,132,692 1,725,669 Exchange adjustments (1,263) 37,536

Charge / (reversals) Charge for the year 963,556 443,585 Reversals (71,872) (32,529) 891,684 411,056

Reversed on disposal (569,357) (41,569) Amounts written off (25,548) - Closing balance 2,428,208 2,132,692

9.3.2 Provision for diminution in value of investments by type

Available for sale securities Ordinary shares of listed companies 1,218,667 817,446 Ordinary shares of unlisted companies 137,129 137,129 Term Finance Certificates 97,616 97,616 Preference shares 335,934 343,512 1,789,346 1,395,703 Held to maturity securities Term Finance Certificates 41,851 51,356 Sukuks 42,650 130,563 Foreign bonds 226,867 227,176 Recovery note 322,433 322,833 Participation Term Certificates 2,795 2,795 Debentures 2,266 2,266 638,862 736,989 2,428,208 2,132,692 9.3.3 Provision for diminution in value of investments by segment

Equity securities Listed companies 1,218,667 817,446 Unlisted companies 137,129 137,129 Preference shares 335,934 343,512 1,691,730 1,298,087

Debt securities Term Finance Certificates 139,467 148,972 Sukuks 42,650 130,563 Recovery note 322,433 322,833 Foreign bonds 226,867 227,176 Participation Term Certificates 2,795 2,795 Debentures 2,266 2,266 736,478 834,605 2,428,208 2,132,692

9.4 Unrealized (loss) / gain on revaluation of held for trading securities

Market Treasury Bills (1,962) (1,436) Pakistan Investment Bonds (222) 10,169 Ordinary shares of listed companies - 469 (2,184) 9,202

20 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

9.5 Investments include securities which are held by the Bank to comply with the statutory liquidity requirements as set out under Section 29 of the Banking Companies Ordinance, 1962.

9.6 Investments include Rs. 282.000 million (2015: Rs. 282.000 million) held by the SBP and National Bank of Pakistan as pledge against demand loan, TT / DD discounting facilities and foreign exchange exposure limit sanctioned to the Bank and Rs. 5.000 million (2015: Rs. 5.000 million) held by the Controller of Military Accounts (CMA) under Regimental Fund Arrangements.

9.7 As a result of exercise of a pledge in 2013, the Bank holds 20.99% of the issued and paid up capital of DHA Cogen Limited without any consideration having been paid. Consequently, DHA Cogen Limited is classified as an associated company.

9.8 Information relating to investments required to be disclosed as part of the financial statements under the SBP's BSD Circular No. 4 dated February 17, 2006, and details in respect of the quality of available for sale securities are disclosed in Annexure 'A' which forms an integral part of these unconsolidated financial statements.

10. ADVANCES Note Performing Non-performing Total 2016 2015 2016 2015 2016 2015 ------(Rupees in '000) ------Loans, cash credits, running finances, etc.

In Pakistan 317,697,928 287,342,709 29,717,889 32,823,235 347,415,817 320,165,944 Outside Pakistan 127,913,711 112,774,827 12,053,537 10,910,259 139,967,248 123,685,086 445,611,639 400,117,536 41,771,426 43,733,494 487,383,065 443,851,030

Islamic financings and related assets 7,277,360 6,990,193 94,614 166,307 7,371,974 7,156,500

Bills discounted and purchased

Payable in Pakistan 13,976,584 12,055,724 2,700,944 2,933,431 16,677,528 14,989,155 Payable outside Pakistan 39,203,743 31,035,225 - - 39,203,743 31,035,225 53,180,327 43,090,949 2,700,944 2,933,431 55,881,271 46,024,380 Advances - gross 506,069,326 450,198,678 44,566,984 46,833,232 550,636,310 497,031,910

Provision against advances 10.3 - Specific - - (37,396,612) (37,536,034) (37,396,612) (37,536,034) - General (3,128,774) (4,081,996) - - (3,128,774) (4,081,996) (3,128,774) (4,081,996) (37,396,612) (37,536,034) (40,525,386) (41,618,030)

Advances - net of provision 502,940,552 446,116,682 7,170,372 9,297,198 510,110,924 455,413,880

Performing Non-performing Total 2016 2015 2016 2015 2016 2015 ------(Rupees in '000) ------10.1 Particulars of advances - gross

10.1.1 In local currency 329,236,693 289,606,487 32,166,038 35,573,809 361,402,731 325,180,296 In foreign currencies 176,832,633 160,592,191 12,400,946 11,259,423 189,233,579 171,851,614 506,069,326 450,198,678 44,566,984 46,833,232 550,636,310 497,031,910

10.1.2 Short term 304,284,529 259,726,799 - - 304,284,529 259,726,799 Long term 201,784,797 190,471,879 44,566,984 46,833,232 246,351,781 237,305,111 506,069,326 450,198,678 44,566,984 46,833,232 550,636,310 497,031,910

21 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

10.2 Advances include Rs. 44,566.984 million (2015: Rs. 46,833.232 million) which have been placed under non-performing status as detailed below: 2016 Category of Classified advances Provision required Provision held classification Domestic Overseas Total Domestic Overseas Total Domestic Overseas Total ------(Rupees in '000) ------Other Assets Especially Mentioned * 126,711 - 126,711 3,576 - 3,576 3,576 - 3,576 Substandard 908,055 1,259,239 2,167,294 222,697 276,506 499,203 222,697 276,506 499,203 Doubtful 2,471,496 2,216,423 4,687,919 1,203,332 795,729 1,999,061 1,203,332 795,729 1,999,061 Loss 29,007,185 8,577,875 37,585,060 27,881,140 7,013,632 34,894,772 27,881,140 7,013,632 34,894,772 32,513,447 12,053,537 44,566,984 29,310,745 8,085,867 37,396,612 29,310,745 8,085,867 37,396,612 94,614 - 2015 Category of Classified advances Provision required Provision held classification Domestic Overseas Total Domestic Overseas Total Domestic Overseas Total ------(Rupees in '000) ------Other Assets Especially Mentioned * 38,294 - 38,294 427 - 427 427 - 427 Substandard 3,990,022 833,654 4,823,676 322,240 86,771 409,011 322,240 86,771 409,011 Doubtful 1,145,884 2,945,603 4,091,487 568,637 1,298,566 1,867,203 568,637 1,298,566 1,867,203 Loss 30,748,773 7,131,002 37,879,775 29,925,554 5,333,839 35,259,393 29,925,554 5,333,839 35,259,393 35,922,973 10,910,259 46,833,232 30,816,858 6,719,176 37,536,034 30,816,858 6,719,176 37,536,034

* The Other Assets Especially Mentioned category pertains to agricultural finance and advances to small enterprises.

10.3 Particulars of provision against advances 2016 2015 Note Specific General Total Specific General Total ------(Rupees in '000) ------

Opening balance 37,536,034 4,081,996 41,618,030 43,761,929 2,022,770 45,784,699 Exchange adjustments 12,926 (107,002) (94,076) 263,177 96,249 359,426

Charge / (reversals) Charge for the year 5,687,885 - 5,687,885 3,000,046 1,963,230 4,963,276 Reversals 10.3.3 (4,336,764) (846,220) (5,182,984) (1,904,402) (253) (1,904,655) 1,351,121 (846,220) 504,901 1,095,644 1,962,977 3,058,621 Transfers in - net 515,625 - 515,625 264,722 - 264,722 Amounts written off 10.4 (2,019,094) - (2,019,094) (7,849,438) - (7,849,438) Closing balance 37,396,612 3,128,774 40,525,386 37,536,034 4,081,996 41,618,030

10.3.1 General provision represents provision amounting to Rs. 218.074 million (2015: Rs. 239.461 million) against consumer finance portfolio and Rs. 39.088 million (2015: Rs. 37.942 million) against advances to small enterprises as required by the Prudential Regulations issued by the SBP and Rs. 2,382.615 million (2015: Rs. 2,531.266 million) pertaining to overseas advances to meet the requirements of the regulatory authorities of the respective countries in which the overseas branches operate. General provision also includes Rs. 488.997 million (2015: Rs 541.664 million) which is based on management estimates and regulatory instructions. Further, the Bank carried provision of nil (2015: Rs. 731.663 million) as a matter of prudence given the prevailing economic environment.

10.3.2 The Bank has availed the benefit of Forced Sale Value (FSV) of certain mortgaged properties held as collateral against non- performing advances as allowed under BSD Circular 1 of 2011. Had the benefit under the said circular not been taken by the Bank, the specific provision against non-performing advances would have been higher by Rs. 56.375 million (2015: Rs. 96.346 million). The FSV benefit availed is not available for the distribution of cash or stock dividend to shareholders.

10.3.3 This includes provision reversals amounting to Rs. 444.034 million (2015: Rs. 216.777 million) as a result of settlement through debt asset swap arrangements with various customers.

10.3.4 Particulars of provision against advances 2016 2015 Specific General Total Specific General Total ------(Rupees in '000) ------

In local currency 28,963,336 257,162 29,220,498 30,467,694 1,009,066 31,476,760 In foreign currencies 8,433,276 2,871,612 11,304,888 7,068,340 3,072,930 10,141,270 37,396,612 3,128,774 40,525,386 37,536,034 4,081,996 41,618,030

22 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

Note 2016 2015 ------(Rupees in '000) ------10.4 Particulars of write-offs

10.4.1 Against provisions 10.3 2,019,094 7,849,438 Directly charged to profit and loss account 97,781 161,229 2,116,875 8,010,667

10.4.2 Write-offs of Rs.500,000 and above 10.5 1,901,454 5,470,304 Write-offs below Rs.500,000 215,421 2,540,363 2,116,875 8,010,667

10.5 Details of loan write-offs of Rs.500,000 and above

In terms of sub-section (3) of Section 33A of the Banking Companies Ordinance, 1962, the statement in respect of written off loans or any other financial relief of five hundred thousand rupees or above allowed to a person during the year ended December 31, 2016 is given in Annexure 'B' to the unconsolidated financial statements. This includes amounts charged off without prejudice to the Bank's right to recovery.

Note 2016 2015 ------(Rupees in '000) ------10.6 Particulars of loans and advances to executives, Directors, associated companies etc.

Balance at the beginning of the year 13,040,213 14,198,303

Loans granted during the year 57,892,210 45,474,013 Repayments made during the year (48,632,480) (46,632,103) 9,259,730 (1,158,090) Balance at the end of the year 22,299,943 13,040,213

11. OPERATING FIXED ASSETS

Capital work-in-progress 11.1 2,924,670 4,059,879 Property and equipment 11.2 31,679,912 26,581,153 Intangible assets 11.3 977,176 989,342 35,581,758 31,630,374

11.1 Capital work-in-progress

Civil works 2,454,913 3,610,623 Equipment 421,205 372,154 Software 48,380 74,530 Advances to suppliers and contractors 172 2,572 2,924,670 4,059,879

23 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 11.2 Property and equipment 2016 Cost / Revaluation Accumulated Depreciation

Annual Charge for the Net book value Exchange / Exchange / rate of Additions / At December At January 1, year / At December at December 31, At January 1, 2016 Other Other deprec- (deletions) 31, 2016 2016 (depreciation 31, 2016 2016 adjustments adjustments iation % on deletions)

------(Rupees in '000) ------Owned Freehold land 5,062,242 - - 5,025,317 - - - - 5,025,317 - (36,925) -

Leasehold land 15,675,141 565,799 (2) 16,240,938 1,339 - (2) 1,337 16,239,601 - - -

Buildings on 862,552 - - 862,552 43,018 43,128 - 86,146 776,406 5 freehold land - -

Buildings on 1,505,242 3,360,721 (15) 4,865,948 69,121 77,254 (5) 146,370 4,719,578 2.5 - 5 leasehold land - -

Leasehold 2,893,387 428,113 1,755 3,323,255 1,727,172 289,543 (2,454) 2,014,261 1,308,994 10 - 20 Improvements - -

Furniture and 1,327,593 244,206 (3,941) 1,558,198 929,834 97,006 (3,801) 1,013,634 544,564 10 - 25 fixtures (9,660) (9,405)

Electrical, office 8,684,198 2,048,837 (19,987) 10,644,148 6,857,266 1,025,849 3,490 7,818,559 2,825,589 10 - 33.33 and computer (68,900) (68,046) equipment

Vehicles 498,057 122,615 (1,908) 540,563 299,509 74,327 (2,960) 300,700 239,863 20 - 25 (78,201) (70,176)

2016 36,508,412 6,770,291 (24,098) 43,060,919 9,927,259 1,607,107 (5,732) 11,381,007 31,679,912 (193,686) (147,627)

2015 Cost / Revaluation Accumulated Depreciation Annual Charge for the Net book value Exchange / Exchange / rate of Additions / At December At January 1, year / At December at December 31, At January 1, 2015 Other Other deprec- (deletions) 31, 2015 2015 (depreciation 31, 2015 2015 adjustments adjustments iation % on deletions) ------(Rupees in '000) ------Owned Freehold land 5,062,242 - - 5,062,242 - - - - 5,062,242 - - -

Leasehold land 14,538,651 1,136,427 63 15,675,141 1,285 - 54 1,339 15,673,802 - - -

Buildings on 849,365 13,187 - 862,552 - 43,018 - 43,018 819,534 5 freehold land - -

Buildings on 1,267,097 237,670 475 1,505,242 2,612 66,387 122 69,121 1,436,121 5 leasehold land - -

Leasehold 2,685,375 211,699 27,809 2,893,387 1,456,863 270,629 22,819 1,727,172 1,166,215 10 - 20 Improvements (31,496) (23,139)

Furniture and 1,250,714 71,685 9,731 1,327,593 830,523 95,383 8,286 929,834 397,759 10 - 25 fixtures (4,537) (4,358)

Electrical, office 7,747,921 956,948 70,498 8,684,198 5,898,079 979,157 60,528 6,857,266 1,826,932 20 - 33.33 and computer (91,169) (80,498) equipment

Vehicles 439,260 101,954 2,916 498,057 264,248 67,300 3,178 299,509 198,548 20 - 25 (46,073) (35,217) 2015 33,840,625 2,729,570 111,492 36,508,412 8,453,610 1,521,874 94,987 9,927,259 26,581,153 (173,275) (143,212)

24 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

11.3 Intangible assets

2016 Cost Accumulated Amortization

Charge for Net book value Exchange / At Exchange / Annual rate of At January Additions / At January the year / At December at December 31, other December other amortisation % 1, 2016 (deletions) 1, 2016 (reversal on 31, 2016 2016 adjustments 31, 2016 adjustments deletion)

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

Software 3,724,219 292,320 (2,072) 4,011,668 2,734,877 314,870 (13,327) 3,034,492 977,176 10 - 33.33 (2,799) (1,928)

2015 Cost Accumulated Amortization

Charge for Net book value Exchange / Exchange / Annual rate of At January Additions / At December At January the year / At December at December 31, other other amortisation % 1, 2015 (deletions) 31, 2015 1, 2015 (reversal on 31, 2015 2015 adjustments adjustments deletion)

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

Software 3,571,906 123,722 28,606 3,724,219 2,336,466 386,494 11,932 2,734,877 989,342 10 - 33.33 (15) (15)

11.4 Revaluation of properties

The properties of the Bank were last revalued by independent professional valuers as at December 31, 2014. The revaluation was carried out by M/s. Pirsons Chemicals Engineering (Private) Limited, M/s. Sadruddin Associates, M/s. Engineering Pakistan International (Private) Limited and M/s. Indus Surveyors (Private) Limited on the basis of professional assessment of present market values and resulted in an increase in surplus by Rs. 5,146.820 million. The total surplus arising against revaluation of fixed assets as at December 31, 2016 amounts to Rs. 20,116.356 million. Had there been no revaluation, the carrying amount of the revalued assets at December 31 would have been as follows:

2016 2015 ------(Rupees in '000) ------

Freehold land 745,657 782,581 Leasehold land 1,898,434 1,332,635 Buildings on freehold land 184,043 196,817 Buildings on leasehold land 3,816,412 485,725

11.5 Carrying amount of temporarily idle property of the Bank 81,790 81,790

11.6 The cost of fully depreciated assets still in use

Furniture and fixtures 356,574 291,812 Electrical, office and computer equipment 6,715,554 4,153,542 Vehicles 137,171 96,519 Leasehold improvements 256,080 113,346 7,465,379 7,465,379 4,655,219

11.7 Details of disposal of operating fixed assets

The information relating to operating fixed assets disposed off during the year is given in Annexure 'C' and is an integral part of these unconsolidated financial statements.

25 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

Note 2016 2015 ------(Rupees in '000) ------12. OTHER ASSETS

Income / mark-up accrued in local currency 23,806,234 26,247,445 Income / mark-up accrued in foreign currency 5,724,754 5,079,320 29,530,988 31,326,765

Advance taxation - net of provision for taxation 12.1 10,781,770 6,271,969 Receivable from staff retirement fund 376,634 211,687 Receivable on account of encashment of savings certificates 9,425 - Receivable in respect of derivative transactions 18,033 18,033 Receivable from other banks against telegraphic transfers and demand drafts 758,923 470,784 Unrealized gain on forward foreign exchange contracts 564,223 543,988 Rebate receivable - net 893,968 904,140 Unrealized gain on derivative financial instruments 18.3.1 & 22.2 204,498 312,868 Suspense accounts 409,513 360,637 Stationery and stamps on hand 117,189 196,170 Non banking assets acquired in satisfaction of claims 2,343,457 2,289,115 Advances, deposits, advance rent and other prepayments 1,024,436 862,720 Others 2,516,480 2,179,535 49,549,537 45,948,411

Provision held against other assets 12.2 (4,818,584) (4,825,077) Other assets - net of provisions 44,730,953 41,123,334

12.1 The Income Tax returns of the Bank have been filed up to the tax year 2016 (accounting year ended December 31, 2015) and were deemed to be assessed under section 120 of the Income Tax Ordinance, 2001 (Ordinance) unless amended by the Commissioner of Inland Revenue.

The income tax authorities have issued amended assessment orders for the tax years 2003 to 2016, and created additional tax demands of Rs.13,723 million (including disallowances of provisions made prior to Seventh Schedule), which have been fully paid as required under the law. The Bank has filed appeals before the various appellate forums against these amendments. Where the appellate authorities have allowed relief on certain issues, the assessing authorities have filed appeals before higher appellate forums. Where the appellate authorities have not allowed relief the Bank has filed appeals before higher appellate forums. The management of the Bank is confident that the appeals will be decided in favor of the Bank.

Under the Seventh Schedule to the Ordinance, banks are allowed to claim provisions against advances up to 5% of total advances for consumer and small and medium enterprises and up to 1% of total advances for remaining advances. Amounts above these limits are allowed to be claimed in future years. The Bank has booked a deferred tax asset of nil (December 31, 2015: Rs.1,140 million) in respect of provisions in excess of the above mentioned limits.

The tax returns for Azad Kashmir (AK) Branches have been filed upto the tax year 2016 (financial year 2015) under the provisions of section 120(1) read with section 114 of the Ordinance and in compliance with the terms of the agreement between banks and the Azad Kashmir Council in May 2005. The returns filed are considered as deemed assessment orders under the law.

The tax authorities have also carried out monitoring for Federal Excise Duty, Sales tax and withholding taxes covering period from year ended 2007 to 2014. Consequently various addbacks and demands were raised creating a total demand of Rs. 1,245 million. The Bank has filed appeals against all such demands and is confident that these would be decided in the favor of the Bank.

The tax returns for overseas branches have been filed upto the year ended December 31, 2015 under the provisions of the laws prevailing in the respective countries, and are deemed as assessed unless opened for reassessment.

26 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

Note 2016 2015 12.2 Provision against other assets ------(Rupees in '000) ------

Opening balance 4,825,077 4,469,635 Exchange adjustments (4,888) 123,800

Charge / (reversals) Charge for the year 161,419 61,934 Reversals (17,511) (71,183) 28 143,908 (9,249) Transfers in - net 817,630 546,615 Amounts written off (963,143) (305,724) Closing balance 4,818,584 4,825,077

13. CONTINGENT ASSETS

There were no contingent assets as at the statement of financial position date.

14. BILLS PAYABLE

In Pakistan 11,041,529 10,846,814 Outside Pakistan 714,893 2,544,925 11,756,422 13,391,739

15. BORROWINGS

In Pakistan 181,622,033 150,679,861 Outside Pakistan 19,927,586 12,452,086 201,549,619 163,131,947

15.1 Particulars of borrowings

In local currency 181,321,268 145,733,598 In foreign currencies 20,228,351 17,398,349 201,549,619 163,131,947

15.2 Details of borrowings

Secured Borrowings from the State Bank of Pakistan under:

Export refinance scheme 15.3 14,702,567 14,426,586 Refinance facility for modernization of SME 15.4 19,550 29,961 Long term financing facility 15.5 11,955,687 7,174,502 Long term financing under export oriented projects 15.6 - 31,355 26,677,804 21,662,404 Repurchase agreement borrowings 15.7 153,643,464 122,771,194 180,321,268 144,433,598 Unsecured Call borrowings 15.8 14,188,048 4,180,379 Overdrawn nostro accounts 300,765 1,280,324 Other borrowings 15.9 6,739,538 13,237,646 21,228,351 18,698,349

201,549,619 163,131,947

27 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

15.3 The Bank has entered into an agreement with the SBP for extending export finance to customers. As per the terms of the agreement, the Bank has granted the SBP the right to recover the outstanding amounts from the Bank at the date of maturity of the finances by directly debiting the Bank's current account maintained with the SBP. These borrowings are repayable within six months, latest by June 2017 . These carry mark-up at a rate of 3.0% per annum (2015: 3.50% per annum).

15.4 These borrowings have been obtained from the SBP under a scheme to finance modernization of Small and Medium Enterprises by providing financing facilities for setting up of new units, purchase of new plant and machinery for Balancing, Modernization and Replacement (BMR) of existing units and financing for import / local purchase of new generators upto a maximum capacity of 500 KVA. These borrowings are repayable within a period ranging from 3 years to 10 years, latest by October 2019 and carry mark-up at a rate of 6.25% per annum (2015: 6.25% per annum).

15.5 These borrowings have been obtained from the SBP for providing financing facilities to exporters for adoption of new technologies and modernization of their plant and machinery. These borrowings are repayable within a period ranging from 3 years to 10 years, latest by December 2026. These carry mark-up at rates ranging from 2.00% to 10.90 % per annum (2015: 2.00% to 10.10% per annum).

15.6 These borrowings have been obtained from the SBP for providing financing facilities for import of machinery, plant, equipment and accessories thereof by export oriented units.

15.7 These repurchase agreement borrowings are secured against Pakistan Investment Bonds and Treasury Bills and carry mark-up at rates ranging from 5.50% to 5.90% per annum (2015: 6.00% to 6.50% per annum). These borrowings are repayable latest by January 2017. The carrying value of securities given as collateral against these borrowings is given in note 9.1.

15.8 These are unsecured borrowings carrying mark-up at rates ranging from 0.25% to 5.85% per annum (2015: 0.47% to 6.25% per annum), and are repayable latest by April 2017.

15.9 These borrowings carry mark-up at rates ranging from 2.00% to 4.74% per annum (2015: 0.47% to 4.55% per annum), and are repayable latest by September 2017.

2016 2015 16. DEPOSITS AND OTHER ACCOUNTS ------(Rupees in '000) ------

Customers Fixed deposits 283,620,672 261,180,733 Savings deposits 370,630,580 357,773,892 Sundry deposits 22,515,064 8,228,428 Margin deposits 4,226,027 5,599,068 Current accounts - remunerative 10,398,987 8,892,225 Current accounts - non-remunerative 420,335,909 358,292,967 1,111,727,239 999,967,313

Financial Institutions Remunerative deposits 57,467,411 38,739,562 Non-remunerative deposits 10,692,398 12,528,295 68,159,809 51,267,857 1,179,887,048 1,051,235,170

16.1 Particulars of deposits and other accounts

In local currency 844,165,517 784,338,453 In foreign currencies 335,721,531 266,896,717 1,179,887,048 1,051,235,170

28 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

Note 2016 2015 ------(Rupees in '000) ------17. DEFERRED TAX LIABILITY - NET

Deferred tax liability - net 17.1 4,691,544 4,186,406

17.1 Movement in temporary differences during the year

2016 At January 1, Recognised Others At December 2016 in profit and 31, 2016 loss account ------(Rupees in '000) ------

Deductible temporary differences on - Workers' Welfare Fund 529,704 89,081 - 618,785 - Provision against off-balance sheet items, post retirement employee benefits, advances and others 5,108,105 (1,154,539) 41,543 3,995,109 5,637,809 (1,065,458) 41,543 4,613,894

Taxable temporary differences on - Surplus on revaluation of fixed assets / non- banking assets (550,593) 27,126 (59,422) (582,889) - Surplus on revaluation of investments (8,951,959) - 799,135 (8,152,824) - Accelerated tax depreciation (321,663) (248,062) - (569,725) (9,824,215) (220,936) 739,713 (9,305,438)

(4,186,406) (1,286,394) 781,256 (4,691,544)

2015 At January 1, Recognised Others At December 2015 in profit and 31, 2015 loss account ------(Rupees in '000) ------

Deductible temporary differences on - Workers' Welfare Fund 233,777 295,927 - 529,704 - Provision against off-balance sheet items, post retirement employee benefits, advances and others 4,931,648 (43,707) 220,164 5,108,105 5,165,425 252,220 220,164 5,637,809

Taxable temporary differences on - Surplus on revaluation of fixed assets / non- banking assets (577,601) 27,129 (121) (550,593) - Surplus on revaluation of investments (6,048,898) - (2,903,061) (8,951,959) - Accelerated tax depreciation (438,271) 116,608 - (321,663) (7,064,770) 143,737 (2,903,182) (9,824,215)

(1,899,345) 395,957 (2,683,018) (4,186,406)

29 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

Note 2016 2015 ------(Rupees in '000) ------18. OTHER LIABILITIES

Mark-up / return / interest payable in local currency 11,559,480 10,718,527 Mark-up / return / interest payable in foreign currency 1,378,004 709,235 12,937,484 11,427,762

Accrued expenses 4,590,522 5,295,097 Branch adjustment account 1,366,415 283,016 Payable against purchase of securities 6 325,854 Payable under severance scheme 32,563 32,563 Deferred income 658,882 821,882 Unearned commission and income on bills discounted 754,235 846,008 Provision against off - balance sheet obligations 18.1 676,021 657,129 Unrealized loss on forward foreign exchange contracts 941,293 624,592 Payable to staff retirement fund 35.4 - 149,951 Deferred liabilities 18.2 3,401,628 3,113,900 Unrealized loss on derivative financial instruments 18.3.1 & 22.2 2,630 75,254 Workers' Welfare Fund payable 1,767,957 1,513,438 Insurance payable against consumer assets 241,621 218,634 Dividend payable 196,626 538,966 Others 311,646 646,060 27,879,529 26,570,106

18.1 Provision against off - balance sheet obligations

Opening balance 657,129 649,102 Exchange adjustments (8,189) 1,748 Charge during the year 28 27,081 6,279 676,021 657,129

18.2 Deferred liabilities

Provision for post retirement medical benefits 35.4 1,328,199 1,188,710 Provision for compensated absences 1,438,941 1,354,253 Deferred liability for outsourced services 181,344 133,592 Deferred liability - overseas 453,144 437,345 3,401,628 3,113,900

18.3 Unrealized gain / (loss) on derivative financial instruments - net

Note Contract / notional amount Unrealized gain / (loss) 2016 2015 2016 2015 ------(Rupees in '000) ------

- Interest rate swaps 6,986,094 10,462,192 197,083 235,546 - Cross currency swaps 522,051 508,129 5,459 (5,459) - FX options 426,162 740,146 - - - Forward purchase contracts of government securities 4,998,400 - (2,391) - - Forward sale contracts of government securities 3,553,866 10,483,779 1,717 7,527 18.3.1 16,486,573 22,194,246 201,868 237,614

30 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

Note 2016 2015 ------(Rupees in '000) ------18.3.1 Unrealized gain / (loss) on derivative financial instruments - net

Unrealized gain on derivative financial instruments 12 204,498 312,868 Unrealized loss on derivative financial instruments 18 (2,630) (75,254) 22.2 201,868 237,614 19. SHARE CAPITAL

19.1 Authorized Capital

2016 2015 (Number of shares)

2,000,000,000 2,000,000,000 Ordinary shares of Rs.10 each 20,000,000 20,000,000

19.2 Issued, subscribed and paid-up capital

2016 2015 (Number of shares) Fully paid-up ordinary shares of Rs.10 each 518,000,000 518,000,000 Issued for cash 5,180,000 5,180,000 706,179,687 706,179,687 Issued as bonus shares 7,061,798 7,061,798 1,224,179,687 1,224,179,687 12,241,798 12,241,798

19.3 In 2007, the Bank was admitted to the official list of the UK Listing Authority and to the London Stock Exchange Professional Securities Market for trading of Global Depository Receipts (GDRs), each representing four ordinary shares issued by the Bank. The GDRs constitute an offering in the United States only to qualified institutional buyers in reliance on Rule 144A under the U.S Securities Act of 1933 and an offering outside the United States in reliance on Regulation S.

Holders of GDRs are entitled, subject to the provisions of the depository agreement, to receive dividends, if any, and rank pari passu with other equity shareholders in respect of such entitlement. However, the holders of GDRs have no voting rights or other direct rights of shareholders with respect to the ordinary shares underlying such GDRs. Subject to the terms and restrictions set out in the offering circular dated June 25, 2007, the deposited ordinary shares in respect of which the GDRs were issued may be withdrawn by the GDR holders from the depository facility. Upon withdrawal, the holders will rank pari passu with other ordinary shareholders in respect of voting powers. As at December 31, 2016, 1,845,734 (2015: 1,255,264) GDRs, representing 7,382,938 (2015: 5,021,054) shares were in issue.

19.4 Major shareholders (holding more than 5% of total paid-up capital)

2016 2015 Number of Percentage of Number of Percentage of Name of shareholder shares held shareholding shares held shareholding

Bestway (Holdings) Limited 631,728,895 51.60% 631,728,895 51.60% Bestway Cement Limited 93,649,774 7.65% 93,649,744 7.65%

As at December 31, 2016, Bestway Group (Bestway) held 61.46% (2015: 61.46%) shareholding (including GDRs) of the Bank. 2016 2015 19.5 Shares of the Bank held by its associates ------(Number of shares) ------

UBL Asset Allocation Fund 114,200 115,000 UBL Stock Advantage Fund 1,153,000 490,300 1,267,200 605,300

31 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

Note 2016 2015 ------(Rupees in '000) ------20. SURPLUS ON REVALUATION OF ASSETS - NET OF DEFERRED TAX

Surplus arising on revaluation of assets - net of tax

Fixed assets / non-banking assets 20.1 19,703,328 19,643,348 Available for sale securities 20.2 15,140,960 16,625,066 34,844,288 36,268,414 20.1 Surplus on revaluation of fixed assets / non-banking assets

Surplus on revaluation of fixed assets / non-banking assets as at January 1 20,193,941 20,271,107

Revaluation of non-banking assets during the year 169,861 - Exchange adjustments (82) 346 Transferred to unappropriated profit in respect of incremental depreciation charged during the year - net of deferred tax (50,377) (50,383) Related deferred tax liability on incremental depreciation charged during the year 17.1 (27,126) (27,129) 92,276 (77,166) 20,286,217 20,193,941 Less: Related deferred tax liability on Revaluation as at January 1 550,593 577,601 Revaluation of non-banking assets during the year 59,451 - Exchange adjustments (29) 121 Incremental depreciation charged on related assets (27,126) (27,129) 17.1 582,889 550,593

19,703,328 19,643,348 20.2 Surplus / (deficit) on revaluation of available for sale securities

Market Treasury Bills (9,729) 9,099 Pakistan Investment Bonds 14,625,102 19,041,613 Listed shares 7,432,229 6,090,141 REIT Investment (5,420) (11,256) Term Finance Certificates, Sukuks, other bonds etc. 104,054 18,406 Foreign bonds 1,147,548 429,022 23,293,784 25,577,025 Related deferred tax liability 17.1 (8,152,824) (8,951,959) 15,140,960 16,625,066 21. CONTINGENCIES AND COMMITMENTS

21.1 Direct credit substitutes

Contingent liabilities in respect of guarantees given favouring

Government 10,418,980 11,938,559 Banking companies and other financial institutions 1,277,955 2,418,267 Others 6,148,339 2,650,778 17,845,274 17,007,604 21.2 Transaction-related contingent liabilities

Contingent liabilities in respect of performance bonds, bid bonds, warranties, etc. given favouring

Government 114,871,452 109,734,826 Banking companies and other financial institutions 7,068,771 7,892,097 Others 38,178,662 29,405,978 160,118,885 147,032,901

32 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 2016 2015 21.3 Trade-related contingent liabilities ------(Rupees in '000) ------

Contingent liabilities in respect of letters of credit opened favouring

Government 63,290,127 52,048,254 Others 104,922,885 87,060,071 168,213,012 139,108,325 21.4 Other contingencies

21.4.1 Claims against the Bank not acknowledged as debts 12,381,804 12,302,822

These mainly represent counter claims filed by the borrowers for restricting the Bank from disposal of assets (such as mortgaged / pledged assets kept as security).

Based on legal advice and / or internal assessments, management is confident that the matters will be decided in the Bank's favour and the possibility of any outcome against the Bank is remote and accordingly no provision has been made in these financial statements.

21.4.2 During the period penalties amounting to Rs. 4.058 billion have been levied by the FE Adjudication Court of the State Bank of Pakistan relating to alleged contraventions of the requirements of foreign exchange regulations with respect to issuance and certification of E-Forms by the Bank to certain customers (Exporters) who failed to submit the export documents theregainst, consequently Foreign Exchange on account of Export Proceeds have not been repatriated. The Bank maintains that it fully discharged its liability, in accordance with the law and has filed a civil suit in the High Court of Sindh challenging the levy of the penalty. The High Court has granted a stay on action being taken against the Bank. The management, based on the advice from legal counsel, is confident that the view of the Bank will prevail and the Bank will not be exposed to any loss on this account.

21.4.3 United Bank Limited Yemen (UBL) issued two Standby Letters of Credit (SBLCs) for USD 12 million (Rs. 1,255.194 million) and USD 13 million (Rs. 1,359.793 million) in favor of Ministry of Oil and Minerals, Yemen (MOM) against the counter SBLCs of a foreign bank. In March 2015, counter party to performance agreement notified MOM of suspension of SBLCs because of force majeure. In September 2015, MOM filed a law suit against UBL at the Preliminary Commercial Court in Sana’a claiming the payment of both SBLCs for the sum of USD 25 million (Rs. 2,614.988 million).

UBL management is pursuing the matter in the court in Yemen which was adjourned in last few hearings due to non- appearance of legal counsel of MOM and non-submission of responses by the MOM. The case is still in court schedule however no summon is received for next hearing.

Based on the legal advice of the Bank's legal counsel in Yemen and in view of facts surrounding the matter, management is of the view that it is unlikely that there will be any financial impact on the Bank.

21.5 Commitments to extend credit

The Bank makes commitments to extend credit in the normal course of its business but these being revocable commitments do not attract any significant penalty or expense if the facility is unilaterally withdrawn.

2016 2015 21.6 Commitments in respect of forward foreign exchange contracts ------(Rupees in '000) ------

Purchase 186,835,721 211,486,719

Sale 162,987,703 197,523,023

21.7 Commitments in respect of derivatives

Interest rate swaps 6,986,094 10,462,192 Cross currency swaps 522,051 508,129 FX options - purchased 213,081 370,073 FX options - sold 213,081 370,073 Forward purchase of government securities 4,998,400 - Forward sale of government securities 3,553,866 10,483,779

21.8 Commitments in respect of capital expenditure 2,755,836 2,411,095

21.9 For contingencies relating to taxation refer note 12.1

33 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

22. DERIVATIVE INSTRUMENTS

Derivatives are a type of financial contract, the value of which is determined by reference to one or more underlying assets or indices. The major categories of such contracts include forwards, futures, swaps and options. Derivatives also include structured financial products that have one or more of the characteristics of forwards, futures, swaps and options.

The Bank, as an Authorized Derivative Dealer (ADD), is an active participant in the Pakistan derivatives market and offers a wide variety of derivatives products covering both hedging and market making to satisfy customers’ needs. Where required, specific approval is sought from the SBP for each transaction.

The authority for approving policies lies with the Board of Directors (BoD) and the Board Risk and Compliance Committee (BRCC). The Risk Management Committee (RMC) is responsible for ensuring compliance with these policies.

With regard to derivatives, the RMC is authorized to:

- Review the derivatives business with reference to market risk exposure and assign various limits in accordance with the risk appetite of the Bank.

- Review the Derivatives Business Policy and recommend approval to the BRCC / BoD.

- Review and approve derivatives product programs.

- Authorize changes in procedures and processes regarding derivatives and structured products.

Overall responsibility for derivatives trading activity lies with the Treasury and Capital Markets Group. Measurement and monitoring of market and credit risk exposure and limits and its reporting to senior management and the BoD is done by Treasury Middle Office (TMO), which also coordinates with the business regarding approvals for derivatives risk limits. Treasury Operations records derivatives activity in the Bank’s books, and handles its reporting to the SBP.

Derivatives risk management

There are a number of risks undertaken by the Bank, which need to be monitored and assessed.

Credit risk

Credit risk refers to the risk of non-performance or default by a party to a derivatives transaction, resulting in an adverse impact on the Bank’s profitability. Credit risk associated with derivatives transactions is categorized into settlement risk and pre-settlement risk. Credit proposals for derivatives transactions are approved by the Credit Committee. The credit exposure of each counterparty is estimated and monitored against approved counterparty limits by TMO on a daily basis.

Market risk

The Bank, as a policy, hedges back-to-back all Options transactions. In addition, the Bank does not carry any exchange risk on its Cross Currency Swaps portfolio as it hedges the exposure in the interbank market. To manage the interest rate risk of Interest Rate Derivatives, the Bank has implemented various limits which are monitored and reported by TMO on a daily basis.

Liquidity risk

Derivatives transactions, usually being non-funded in nature, do not carry a specific funding liquidity risk.

The liquidity risk arises from the fact that in Pakistan, interest rate derivatives generally have a uni-directional demand, and no perfect hedge is available. The Bank mitigates its risk by limiting the portfolio in terms of tenor, notional and sensitivity limits, and can also hedge its risk by taking on and off balance sheet positions in the interbank market, where available.

34 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

Operational risk

The staff involved in the trading, settlement and risk management of derivatives is carefully trained to deal with the complexities involved in the process. Adequate systems and controls are in place to carry out derivatives transactions smoothly. Each transaction is processed in accordance with the product program or a transaction memo, which contains detailed guidance on the accounting and operational aspects of the transaction to further mitigate operational risk. In addition, TMO and the Compliance and Control Department are assigned the responsibility of monitoring any deviation from policies and procedures. The Bank’s Audit and Inspection Group also reviews this function, with a regular review of systems, transactional processes, accounting practices and end-user roles and responsibilities.

The Bank uses FX and Derivatives module of Treasury System which provides an end-to-end valuation solution, supports the routine transactional process and provides analytical tools to measure various risk exposures, carry out stress tests and sensitivity analysis.

TMO produces various reports on a periodic basis which are reviewed by senior management. These reports provide details of the derivatives business profile such as outstanding positions, profitability, risk exposures and the status of compliance with limits.

22.1 Product analysis 2016 Forward purchase Forward sale contracts Interest rate swaps Cross currency swaps FX options contracts of of government Total government securities securities Notional Number of Notional Number of Notional Number of Notional Number of Notional Number of Notional contracts principal contracts principal contracts principal contracts principal contracts principal (Rupees in (Rupees in (Rupees in (Rupees in (Rupees in (Rupees in '000) '000) '000) '000) '000) '000)

With banks for Hedging 2 669,047 - - 4 213,081 - - - - 882,128 Market making 1 34,866 1 522,051 - - 1 4,998,400 2 3,553,866 9,109,183 3 703,913 1 522,051 4 213,081 1 4,998,400 2 3,553,866 9,991,311 With other entities Market making 5 6,282,181 - - 4 213,081 - - - - 6,495,262

Total Hedging 2 669,047 - - 4 213,081 - - - - 882,128 Market making 6 6,317,047 1 522,051 4 213,081 1 4,998,400 2 3,553,866 15,604,445 8 6,986,094 1 522,051 8 426,162 1 4,998,400 2 3,553,866 16,486,573

2015 Forward purchase Forward sale contracts Interest rate swaps Cross currency swaps FX options contracts of of government Total government securities securities Notional Number of Notional Number of Notional Number of Notional Number of Notional Number of Notional contracts principal contracts principal contracts principal contracts principal contracts principal (Rupees in (Rupees in (Rupees in (Rupees in (Rupees in (Rupees in '000) '000) '000) '000) '000) '000)

With banks for Hedging 3 1,432,971 - - 9 370,073 - - - - 1,803,044 Market making 1 104,741 1 508,129 - - - - 4 10,483,779 11,096,649 4 1,537,712 1 508,129 9 370,073 - - 4 10,483,779 12,899,693 With other entities Market making 5 8,924,480 - - 9 370,073 - - - - 9,294,553

Total Hedging 3 1,432,971 - - 9 370,073 - - - - 1,803,044 Market making 6 9,029,221 1 508,129 9 370,073 - - 4 10,483,779 20,391,202 9 10,462,192 1 508,129 18 740,146 - - 4 10,483,779 22,194,246

35 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

22.2 Maturity analysis of derivatives

2016 Remaining maturity No. of Notional Unrealized contracts principal (Loss) Gain Net ------(Rupees in '000) ------

Upto 1 month 7 8,765,347 (2,391) 1,717 (674) 1 to 3 months 5 735,133 - 5,459 5,459 3 to 6 months 2 69,732 (239) 251 12 6 months to 1 year - - - - - 1 to 2 years 3 648,000 - 46,347 46,347 2 to 3 Years 3 6,268,361 150,724 150,724 3 to 5 years - - - - - 5 to 10 years - - - - - Above 10 years - - - - - 20 16,486,573 (2,630) 204,498 201,868

2015 Remaining maturity No. of Notional Unrealized contracts principal (Loss) Gain Net ------(Rupees in '000) ------

Upto 1 month 14 11,084,676 - 7,527 7,527 1 to 3 months 8 139,248 - - - 3 to 6 months - - - - - 6 months to 1 year - - - - - 1 to 2 years 3 717,612 (7,130) 1,745 (5,385) 2 to 3 years 4 1,550,250 (47,479) 111,247 63,768 3 to 5 years 3 8,702,460 (20,645) 192,349 171,704 5 to 10 years - - - - - Above 10 years - - - - - 32 22,194,246 (75,254) 312,868 237,614

2016 2015 23. MARK-UP / RETURN / INTEREST EARNED ------(Rupees in '000) ------

On loans and advances to customers 30,394,552 33,802,408

On lendings to financial institutions Call money lending 172,303 92,239 Securities purchased under resale agreements 138,814 381,388 Bai Muajjal with other financial institutions 47,028 - Other lendings to financial institutions 900,222 706,021 1,258,367 1,179,648

On investments in Held for trading securities 1,073,887 1,337,918 Available for sale securities 35,049,733 34,014,329 Held to maturity securities 30,182,480 23,832,460 66,306,100 59,184,707 On deposits with financial institutions 260,195 186,168 98,219,214 94,352,931 24. MARK-UP / RETURN / INTEREST EXPENSED

On deposits 29,136,354 29,704,829 On securities sold under repurchase agreements 10,197,470 6,110,958 On other short term borrowings 1,443,153 2,205,735 On long term borrowings 399,709 489,639 41,176,686 38,511,161

36 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

Note 2016 2015 25. GAIN ON SALE OF SECURITIES - NET ------(Rupees in '000) ------

Federal government securities Market Treasury Bills 11,461 217,680 Pakistan Investment Bonds 3,507,471 1,269,086 3,518,932 1,486,766 Ordinary shares of listed companies 1,054,440 790,743 Other securities 791,091 950,812 5,364,463 3,228,321 26. OTHER INCOME

Charges recovered 450,214 376,582 Rent on properties 211,306 183,924 Income from dealing in derivatives 93,351 287,860 Gain on sale of operating fixed assets - net 44,273 19,023 Gain on sale of Ijarah assets 44,685 863 Income from sale of non-banking asset 26.1 20,574 - Gain on trading liabilities - net 95,701 202,192 960,104 1,070,444

26.1. The Bank earned an income of Rs. 20.574 million against sale of following non-banking assets.

Agricultural open land situated in Lahore 6,375 - Commercial open plot situated in Faisalabad 14,199 - 20,574 -

27. ADMINISTRATIVE EXPENSES

Salaries, allowances etc. 27.1 11,370,646 10,620,614 Charge for compensated absences 315,084 268,505 Medical expenses 608,785 551,587 Contribution to defined contribution plan 237,496 206,999 (Reversal) / charge in respect of defined benefit obligations (78,584) 365,741 Rent, taxes, insurance, electricity etc. 4,203,455 3,983,602 Depreciation on operating fixed assets 11.2 1,607,107 1,521,874 Depreciation on Islamic financing against leased assets (Ijarah) 44.4 205,186 225,424 Amortization 11.3 314,870 386,494 Outsourced service charges including sales commission 4,565,397 4,320,118 Communications 1,094,953 1,148,316 Banking service charges 1,113,498 1,001,228 Cash transportation charges 647,034 577,320 Stationery and printing 669,106 592,182 Legal and professional charges 410,827 423,528 Advertisement and publicity 703,838 822,640 Repairs and maintenance 1,416,833 1,606,577 Travelling 254,657 279,207 Office running expense 776,296 636,050 Vehicle expense 184,210 178,478 Entertainment 237,801 224,844 Cartage, freight and conveyance 96,569 92,720 Insurance expense 111,267 108,484 Auditors' remuneration 27.2 71,798 52,508 Training and seminars 116,008 211,009 Brokerage expenses 18,441 30,592 Subscriptions 89,555 77,784 Donations 27.3 86,933 167,368 Non-executive Directors' fees 41,963 45,412 Zakat paid by overseas branch 283,971 137,561 Miscellaneous expenses 128,598 31,393 31,903,598 30,896,159

37 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

27.1 This includes accrual of employee benefits in the form of awards / bonus to all permanent staff including the Chief Executive Officer and is determined on the basis of employees' evaluation and the Bank's performance during the year. The aggregate benefit determined in respect of all permanent staff amounted to Rs. 1,531.067 million (2015: Rs.1,323.540 million).

27.2 Auditors' remuneration 2016 KPMG Taseer A. F. Ferguson Overseas Total Hadi & Co. & Co. Auditors ------(Rupees in '000) ------

Audit fee 7,668 7,668 27,953 43,289 Fee for audit of EPZ branch 250 - - 250 Fee for tax and other certifications 7,075 5,562 9,322 21,959 Out of pocket expenses 3,429 2,566 305 6,300 18,422 15,796 37,580 71,798

2015 KPMG Taseer A. F. Ferguson Overseas Total Hadi & Co. & Co. Auditors ------(Rupees in '000) ------

Audit fee 7,527 7,527 22,181 42,226 Fee for audit of EPZ branch 250 - - 250 Fee for tax and other certifications 4,006 318 4,318 4,324 Out of pocket expenses 3,351 2,337 693 5,708 15,134 10,182 27,192 52,508

2016 2015 27.3 Details of donations ------(Rupees in '000) ------

Donations individually exceeding Rs.0.1 million Namal Education Foundation 50,000 2,400 Lahore University of Management Sciences 10,000 10,000 Forman Christian College 5,000 75,000 Shalamar Hospital 5,000 5,000 Indus Earth Trust 4,943 4,943 Abdul Sattar Edhi Foundation 4,600 800 Bahauddin Zakaria University 3,840 - SOS Children's Villages of Pakistan 980 980 Marie Adelaide Leprosy Centre 850 850 The Citizens Foundation 500 1,650 Shaukat Khanum Memorial Hospital 500 - The Kidney Center Post Graduate Training Institute 300 200 Old Associates of Kinnaird Society Karachi 250 200 Rotary Club of Karachi Metropolitan 150 - Institute of Business Administration - 40,000 Sindh Institute of Urology and Transplant - 10,000 Gulab Devi Chest Hospital - 10,000 Hisaar Foundation - 1,000 Aga Khan Hospital and Medical College - 1,000 Balochistan University of Engineering and Technology - 1,000 Inner Wheel Club Pakistan - 600 Family Welfare Maternity & General Hospital - 500 Oxford and Cambridge Society - 210 Karwan-e-Hayat - 200 Pakistan Foundation Fighting Blindness - 200 Subh-e-Nau - 200 Pakistan Parkinson's Society - 165 Old Grammarian Society Trust - 125

Donations individually not exceeding Rs.0.1 million 20 145 86,933 167,368

27.3.1 Donations were not made to any donee in which a Director or his spouse had any interest.

38 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

Note 2016 2015 28. OTHER PROVISIONS - NET ------(Rupees in '000) ------

Provision charge / (reversal) against other assets - net 12.2 143,908 (9,249) Provision against off - balance sheet obligations 18.1 27,081 6,279 Other provisions 89,859 82,387 260,848 79,417

29. WORKERS' WELFARE FUND

Under the Workers' Welfare Ordinance, 1971, the Bank has accrued Workers' Welfare Fund at 2% of profit before tax as per the financial statements or declared income as per the income tax return, whichever is higher.

The Bank has made full provision for Workers Welfare Fund based on profit for the respective years.

During the current year, the Supreme Court of Pakistan vide its order dated November 10, 2016 has held that the amendments made in the law introduced by the Federal Government for the levy of Workers Welfare Fund were not lawful. The Federal Board of Revenue has filed review petitions against this order which are currently pending.

Legal advice obtained on the matter indicates that consequent to filing of these review petitions the judgment may not currently be treated as conclusive. Accordingly, the Bank maintains its provision in respect of WWF.

2016 2015 ------(Rupees in '000) ------30. OTHER CHARGES

Penalties imposed by the SBP 69,082 200,989 Other penalties 731 1,114 69,813 202,103

31. TAXATION 2016 Domestic Azad Kashmir Overseas Total ------(Rupees in '000) ------

Current 12,996,987 414,484 1,487,238 14,898,709 Prior years 1,700,687 - 399,694 2,100,381 Deferred 1,245,524 6,476 34,394 1,286,394 15,943,198 420,960 1,921,326 18,285,484

2015 Domestic Azad Kashmir Overseas Total ------(Rupees in '000) ------

Current 13,072,098 397,822 1,573,032 15,042,952 Prior years 1,625,905 - 174,636 1,800,541 Deferred (209,184) (2,882) (183,891) (395,957) 14,488,819 394,940 1,563,777 16,447,536

2016 2015 ------(Rupees in '000) ------31.1 Relationship between tax expense and accounting profit

Accounting profit for the year 46,015,596 42,174,685

Tax on income @ 35% (2015: 35%) 16,105,459 14,761,140 Tax effect of items that are either not included in determining taxable profit or taxed at reduced rates (permanent differences) 24,435 70,211 Tax - prior years (net of deferred tax) 2,116,858 1,625,956 Others 38,732 (9,771) Tax charge 18,285,484 16,447,536

39

NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

2016 2015 32. EARNINGS PER SHARE ------(Rupees in '000) ------Profit after taxation for the year 27,730,112 25,727,149

------(Number of shares) ------Weighted average number of ordinary shares 1,224,179,687 1,224,179,687

------(Rupees) ------Earnings per share - basic and diluted 22.65 21.02

32.1 Diluted earnings per share has not been presented separately as the Bank does not have any convertible instruments in issue at December 31, 2016 or 2015.

Note 2016 2015 33. CASH AND CASH EQUIVALENTS ------(Rupees in '000) ------Cash and balances with treasury banks 6 131,506,861 112,011,276 Balances with other banks 7 14,920,994 16,859,118 146,427,855 128,870,394

34. STAFF STRENGTH ------(Number) ------Permanent 9,735 10,026 On contract 39 39 Bank's own staff strength 9,774 10,065 Outsourced 4,379 4,558 Total 14,153 14,623

35. DEFINED BENEFIT PLANS

35.1 General description The Bank operates a funded pension scheme established in 1986. The Bank also operates a funded gratuity scheme for new employees and for those employees who have not opted for the pension scheme. The Bank also operates a benevolent fund scheme and provides post retirement medical benefits to eligible retired employees. The benevolent fund scheme and the post-retirement medical scheme cover all regular employees of the Bank who joined the Bank pre- privatization. The liabilities of the Bank in respect of these schemes are determined based on actuarial valuations carried out using the Projected Unit Credit Method. Actuarial valuations of the defined benefit schemes are carried out every year and the latest valuation was carried out as at December 31, 2016.

35.2 Number of Employees under the scheme The number of employees covered under the following defined benefit schemes are: 2016 2015 ------(Number) ------

- Pension fund 6,829 6,974 - Gratuity fund 7,984 8,137 - Benevolent fund 4,386 4,914 - Post retirement medical benefit scheme 9,839 10,062

The pension fund, benevolent fund and post retirement medical benefit schemes include 5,499 (2015: 5,505), 2,214 (2015: 2,436) and 5,172 (2015: 5,224 ) members respectively who have retired or whose widows are receiving the benefits.

35.3 Principal actuarial assumptions The actuarial valuations were carried out as at December 31, 2016 using the following significant assumptions:

2016 2015 ------Per annum ------Discount rate / expected rate of return on plan assets 8.00% 9.00% Expected rate of salary increase 6.00% 7.00% Expected rate of increase in pension 2.00% 1.25% Expected rate of increase in medical benefit 2.00% 1.25%

40 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

35.4 Reconciliation of (receivable from) / payable to defined benefit plans

Note 2016 2015 Post Post Pension Gratuity Benevolent retirement Pension Gratuity Benevolent retirement fund fund fund medical fund fund fund medical benefit benefit ------(Rupees in '000) ------

Present value of obligations 2,932,255 652,457 453,193 1,328,199 3,034,259 625,414 466,964 1,188,710 Fair value of plan assets (3,077,541) (711,805) (501,671) - (2,884,308) (652,318) (899,017) - (Receivable) / payable (145,286) (59,348) (48,478) 1,328,199 149,951 (26,904) (432,053) 1,188,710

35.5 Movement in defined benefit obligations

Obligations at the beginning of the year 3,034,259 625,414 466,964 1,188,710 3,049,641 605,383 454,377 1,084,100 Current service cost 8,518 108,203 7,691 4,211 12,437 95,350 7,794 3,954 Interest cost 130,399 56,784 38,786 107,169 124,973 63,517 43,290 114,033 Benefits paid by the Bank (507,085) (111,140) (70,819) (128,259) (643,151) (148,667) (79,465) (132,206) Return allocated to other funds 35.8.1 148,998 - - - 177,770 - - - Re-measurement loss / (gain) 117,166 (26,804) 10,571 156,368 312,589 9,831 40,968 118,829 Obligations at the end of the year 2,932,255 652,457 453,193 1,328,199 3,034,259 625,414 466,964 1,188,710

35.6 Movement in fair value of plan assets

Fair value at the beginning of the year 2,884,308 652,318 899,017 - 2,971,469 630,905 876,741 - Interest income on plan assets 266,470 59,104 77,332 - 294,934 66,067 87,239 - Contribution by the Bank 332,855 111,594 2,814 - 108,044 93,214 3,182 - Contribution by the employees - - 2,814 - - - 3,182 - Amount paid by the fund to the Bank (522,251) (133,843) (496,542) - (493,913) (140,631) (73,203) - Re-measurements: Net return on plan assets over interest income gain / (loss) 116,159 22,632 16,236 - 3,774 2,763 1,876 - Fair value at the end of the year 3,077,541 711,805 501,671 - 2,884,308 652,318 899,017 -

35.7 Movement in (receivable) / payable under defined benefit schemes

Opening balance 149,951 (26,904) (432,053) 1,188,710 78,172 (25,522) (422,364) 1,084,100 Mark-up receivable on Bank's balance with the fund (4,193) (492) (475) - (2,726) (826) (394) - Charge / (reversal) for the year 21,445 105,883 (33,669) 111,380 20,246 92,800 (39,337) 117,987 Contribution by the Bank (332,855) (111,594) (2,814) - (108,044) (93,214) (3,182) - Amount paid by the Fund to the Bank 522,251 133,843 496,542 - 493,913 140,631 73,203 - Re-measurement loss / (gain) recognised in OCI during the year 5,200 (48,944) (5,190) 156,368 311,541 7,894 39,486 118,829 Benefits paid by the Bank (507,085) (111,140) (70,819) (128,259) (643,151) (148,667) (79,465) (132,206) Closing balance (145,286) (59,348) (48,478) 1,328,199 149,951 (26,904) (432,053) 1,188,710

35.8 Charge for defined benefit plans

35.8.1 Cost recognised in profit and loss

Current service cost 8,518 108,203 4,877 4,211 12,437 95,350 4,612 3,954 Net interest on defined benefit asset / liability (136,071) (2,320) (38,546) 107,169 (169,961) (2,550) (43,949) 114,033 Return allocated to other funds 35.8.1.1 148,998 - - - 177,770 - - - Employees' contribution ------21,445 105,883 (33,669) 111,380 20,246 92,800 (39,337) 117,987

35.8.1.1 This represents return allocated to those employees who exercised the conversion option offered in the year 2001, as referred to in note 5.9.1.

35.8.1.2 In addition, resulting from a change in the terms of the Trust, a surplus in the Benevolent fund of Rs. 432.053 million, relating to prior years has been reconginized as credit in the Profit and loss account during the year. 35.8.2 Re-measurements recognised in OCI during the year

2016 2015 Post Post Pension Gratuity Benevolent retirement Pension Gratuity Benevolent retirement fund fund fund medical fund fund fund medical benefit benefit ------(Rupees in '000) ------Loss / (gain) on obligation - Financial assumptions 140,079 (3,922) 9,445 182,530 15,491 (3,807) 36,042 215,496 - Experience adjustment (22,913) (22,882) 1,126 (26,162) 297,098 13,638 4,926 (96,667) Return on plan assets over interest income (116,159) (22,632) (16,236) - (3,774) (2,763) (1,876) - Adjustment for markup 4,193 492 475 - 2,726 826 394 - Total re-measurements recognised in OCI 5,200 (48,944) (5,190) 156,368 311,541 7,894 39,486 118,829

41 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

35.9 Components of plan assets 2016 2015 Pension Gratuity Benevolent Pension Gratuity Benevolent fund fund fund fund fund fund ------(Rupees in '000) ------Cash and cash equivalents - net of current liabilities 13,559 2,767 1,688 224 190 182 Quoted securities Ordinary shares 169,105 10,407 23,704 109,681 5,688 15,374 Term finance certificates 81,013 6,239 10,619 93,539 10,214 14,552 Pakistan Investment Bonds 1,414,882 398,146 192,283 1,444,613 388,920 628,466 Special Savings Certificates 1,398,982 281,346 273,377 1,236,234 247,288 240,423 Other - 12,900 - 17 18 20 3,077,541 711,805 501,671 2,884,308 652,318 899,017

35.9.1 The funds primarily invests in government securities and accordingly do not carry any significant credit risk. These are subject to interest rate risk based on market movements. Investment in term finance certificates are subject to credit risk and interest rate risks, while equity securities are subject to price risk. These risks are regularly monitored by Trustees of the employee funds.

35.10 Sensitivity analysis

Sensitivity analysis has been performed by varying one assumption keeping all other assumptions constant and calculating the impact on the present value of the defined benefit obligations under the various employee benefit schemes. The increase / (decrease) in the present value of defined benefit obligations as a result of change in each assumption is summarized below: 2016 Pension Gratuity Benevolent Post retire- fund fund fund ment medical benefit ------(Rupees in '000) ------

Increase in Discount Rate by 1 % (83,707) (42,458) (18,150) (118,362) Decrease in Discount Rate by 1 % 95,185 48,416 20,258 133,739 Increase in expected future increment in salary by 1% - 52,200 - - Decrease in expected future increment in salary by 1% - (46,472) - - Increase in expected future increment in pension by 1% 84,923 - - - Decrease in expected future increment in pension by 1% (75,179) - - - Increase in expected future increment in medical benefit by 1% - - - 23,149 Decrease in expected future increment in medical benefit by 1% - - - (26,485)

Although the analysis does not take account of the full distribution of expected cash flows, it does provide an approximation of the sensitivity of the assumptions shown.

35.11 Expected contributions to be paid to the funds in the next financial year

The Bank contributes to the pension and gratuity funds according to the actuary's advice. Contribution to the benevolent fund is made by the Bank as per the rates set out in the benevolent fund scheme. Based on actuarial advice, management estimates that the expected contribution and charge / (reversal) for the year ending December 31, 2017, would be as follows: 2017 Pension Gratuity Benevolent Post retire- fund fund fund ment medical benefit ------(Rupees in '000) ------

Expected contribution - 102,352 292 -

Expected (reversal) / charge for the year (2,988) 102,352 292 115,743

42 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

35.12 Maturity profile 2016 Pension Gratuity Benevolent Post retire- fund fund fund ment medical benefit

The weighted average duration of the obligation (in years) 6.27 6.93 4.45 9.49

35.13 Funding Policy

The Bank endeavours to ensure that liabilities under the various employee benefit schemes are covered by the Fund on any valuation date having regards to the various actuarial assumptions such as projected future salary increase, expected future contributions to the fund, projected increase in liability associated with future service and the projected investment income of the Fund.

36. OTHER EMPLOYEE BENEFITS

36.1 Defined contribution plan

The Bank operates a contributory provident fund scheme for 7,981 (2015: 8,137) employees who are not in the pension scheme. The employer and employee each contribute 8.33% of the basic salary to the funded scheme every month.

36.2 Employee Motivation and Retention Scheme

The Bank has a long term motivation and retention scheme for its employees. The liability of the Bank in respect of the scheme for each year, if any, is fixed, and is accounted for in the year to which the scheme relates. The scheme is managed by separate Trusts formed in respect of each year. During the year, Rs. 38.748 million (2015: Rs. 68.928 million) and Rs. 1.437 million (2015: Rs. 2.256 million) were received by the Executives and the Chief Executive respectively from the scheme. No new Trust was set up during the current year.

37. COMPENSATION OF DIRECTORS AND EXECUTIVES

President / Chief Directors Executives Executive Officer 2016 2015 2016 2015 2016 2015 ------(Rupees in '000) ------

Fees - - 41,963 45,412 - - Managerial remuneration 129,907 108,871 - - 4,793,916 4,422,414 Charge for defined benefit plans 1,638 1,402 - - 449,837 344,950 Charge for defined contribution plan 3,630 3,300 - - 109,310 97,643 Rent and house maintenance 4,191 4,583 - - 678,631 613,897 Utilities 1,407 1,545 - - 330,939 293,893 Medical - 46 - - 151,684 132,944 Conveyance - - - - 449,304 368,488 Others 3,394 7,558 - - 269,351 232,275 144,167 127,305 41,963 45,412 7,232,972 6,506,504

Number of persons 1 1 8 8 1,794 1,745

The Bank's President / Chief Executive Officer and certain Executives are provided with use of Bank maintained cars and household equipment.

In addition to the above, all Executives including the Chief Executive Officer of the Bank, are also entitled to certain short and long term employee benefits which are disclosed in note 36.2 to these unconsolidated financial statements.

43 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

38. FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of quoted securities other than those classified as held to maturity, is based on quoted market price. Quoted securities classified as held to maturity are carried at cost. The fair value of unquoted equity securities, other than investments in associates and subsidiaries, is determined on the basis of the break-up value of these investments as per their latest available audited financial statements. The fair value of unquoted debt securities, fixed term loans, other assets, other liabilities, fixed term deposits and borrowings cannot be calculated with sufficient reliability due to the absence of a current and active market for these assets and liabilities and reliable data regarding market rates for similar instruments. In the opinion of the management, the fair value of the remaining financial assets and liabilities are not significantly different from their carrying values since these are either short-term in nature or, in the case of customer loans and deposits, are frequently repriced. 38.1 The Bank measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements: Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: Fair value measurements using input for the asset or liability that are not based on observable market data (i.e. unobservable inputs). The table below analyses financial instruments measured at the end of the reporting period by the level in the fair value hierarchy into which the fair value measurement is categorised:

2016 Carrying / Fair value Notional value Level 1 Level 2 Level 3 Total On balance sheet financial instruments ------(Rupees in '000)------Financial assets measured at fair value - Investments Government Securities (Tbills, PIBs, GoP Sukuks and Eurobonds) 398,870,094 - 398,870,094 - 398,870,094 Foreign Bonds - Sovereign 19,399,674 - 19,399,674 - 19,399,674 Foreign Bonds - others 9,799,161 - 9,799,161 - 9,799,161 Ordinary shares of listed companies 22,220,669 22,220,669 - - 22,220,669 Debt securities (TFCs) 562,722 - 562,722 - 562,722 Investment in REIT 453,170 453,170 - - 453,170

Financial assets not measured at fair value - Cash and bank balances with treasury banks 131,506,861 - - - - - Balances with other banks 14,920,994 - - - - - Lending to financial institutions 34,168,287 - - - - - Advances 510,110,924 - - - - - Other assets 28,770,658 - - - - - Investments (HTM, unlisted ordinary shares, preference shares, subsidiaries and associates) 355,225,756 - - - - 1,526,008,970 22,673,839 428,631,651 - 451,305,490 Financial liabilities not measured at fair value - Bills Payable 11,756,422 - - - - - Borrowings 201,549,619 - - - - - Deposits and other accounts 1,179,887,048 - - - - - Other liabilities 22,147,747 - - - -

1,415,340,836 - - - - Off balance sheet financial instruments Forward purchase and sale of foreign exchange contracts 349,823,424 - (377,070) - (377,070) Interest rate swaps 6,986,094 - 197,083 - 197,083 Cross currency swaps 522,051 - 5,459 - 5,459 FX options - purchased and sold (net) 426,162 - - - - Forward purchase of government securities 4,998,400 - (2,391) - (2,391) Forward sale of government securities 3,553,866 - 1,717 - 1,717

44 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

2015 Carrying / Fair value Notional value Level 1 Level 2 Level 3 Total On balance sheet financial instruments ------(Rupees in '000)------Financial assets measured at fair value - Investments Government Securities (Tbills, PIBs, GoP Sukuks and Eurobonds) 375,011,154 - 375,011,154 - 375,011,154 Foreign Bonds - Sovereign 16,760,429 - 16,760,429 - 16,760,429 Foreign Bonds - others 11,200,099 - 11,200,099 - 11,200,099 Ordinary shares of listed companies 24,602,947 24,602,947 - - 24,602,947 Debt securities (TFCs) 1,291,952 - 1,291,952 - 1,291,952 Investment in REIT 447,334 447,334 - - 447,334

Financial assets not measured at fair value - Cash and bank balances with treasury banks 112,011,276 - - - - - Balances with other banks 16,859,118 - - - - - Lending to financial institutions 24,094,768 - - - - - Advances 455,413,880 - - - - - Other assets 30,778,317 - - - - - Investments (HTM, unlisted ordinary shares, preference shares, subsidiaries and associates) 290,204,178 - - - - 1,358,675,452 25,050,281 404,263,634 - 429,313,915

Financial liabilities not measured at fair value - Bills Payable 13,391,739 - - - - - Borrowings 163,131,947 - - - - - Deposits and other accounts 1,051,235,170 - - - - - Other liabilities 21,263,607 - - - -

1,249,022,463 - - - - Off balance sheet financial instruments Forward purchase and sale of foreign exchange contracts 409,009,742 - (80,604) - (80,604) Interest rate swaps 10,462,192 - 235,546 - 235,546 Cross currency swaps 508,129 - (5,459) - (5,459) FX options - purchased and sold (net) 740,146 - - - - Forward purchase of government securities - - - - - Forward sale of government securities 10,483,779 - 7,527 - 7,527

38.2 Certain categories of operating fixed assets (land and buildings) and non-banking assets acquired in satisfactions of claims are carried at revalued amounts (level 3 measurement) determined by professional valuers based on their assessment of the market values as disclosed in note 11 and note 12 respectively.

38.3 Valuation techniques used in determination of fair values within level 2 and level 3.

Debt Securities The fair value of Federal Government securities is determined using the prices / rates available on Mutual Funds Association of Pakistan (MUFAP) and the fair value of other corporate and foreign government securites is determined using the rates from Reuters / Bloomberg

Derivatives The fair valuation techniques include forward pricing and swap models using present value calculations.

Operating fixed assets and non-banking assets acquired in satisfaction of claims Land, buildings and non-banking assets acquired in satisfaction of claims are revalued on a periodic basis using professional valuers. The valuation is based on their assessment of the market value of the assets. The effect of changes in the unobservable inputs used in the valuations cannot be determined with certainity, accordingly a qualitative disclosure of sensitivity has not been presented in these unconsolidated financial statements.

45 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

39. SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES

For the year ended December 31, 2016 Corporate Trading and Commercial Inter segment Retail banking Others finance sales banking elimination ------(Rupees in '000) ------

Total income 687,888 34,151,640 30,148,323 13,257,465 2,405,854 - Total expenses 98,333 1,875,185 26,603,042 5,659,441 399,573 - Profit before tax 589,555 32,276,455 3,545,281 7,598,024 2,006,281 - Segment return on assets (ROA) 101.1% 2.3% 0.2% 1.0% - - Segment cost of funds 0.0% 4.6% 2.6% 4.0% - -

For the year ended December 31, 2015 Corporate Trading and Commercial Inter segment Retail banking Others finance sales banking elimination ------(Rupees in '000) ------

Total income 581,214 27,621,195 33,920,457 13,113,734 2,592,177 - Total expenses 130,802 1,638,334 25,742,429 6,433,026 1,709,501 - Profit before tax 450,412 25,982,861 8,178,028 6,680,708 882,676 - Segment return on assets (ROA) 108.2% 2.3% 0.7% 1.0% - - Segment cost of funds 0.0% 5.4% 3.2% 4.7% - -

As at December 31, 2016 Corporate Trading and Commercial Inter segment Retail banking Others finance sales banking elimination ------(Rupees in '000) ------

Segment assets (gross of NPLs provisions) 1,121,938 892,875,447 1,082,965,053 511,304,109 114,463,896 (987,782,808) Segment non performing loans (NPLs) 674,671 1,603,361 10,364,636 31,859,524 64,792 - Segment provision held against NPLs 507,379 1,584,978 8,476,832 26,790,721 36,702 - Segment liabilities 233,008 855,174,842 1,072,484,615 480,003,978 5,650,527 (987,782,808)

As at December 31, 2015 Corporate Trading and Commercial Inter segment Retail banking Others finance sales banking elimination ------(Rupees in '000) ------

Segment assets (gross of NPLs provisions) 933,876 807,644,718 982,527,691 441,691,268 103,599,829 (898,210,505) Segment non performing loans (NPLs) 675,575 1,866,135 13,644,606 30,415,533 231,383 - Segment provision held against NPLs 508,071 1,846,111 10,666,275 24,439,842 75,735 - Segment liabilities 133,013 772,279,203 966,764,107 412,445,535 5,104,015 (898,210,505)

Segment assets and liabilities include inter segment balances.

Transactions between reportable segments are based on an appropriate transfer pricing mechanism using agreed rates.

40. TRUST ACTIVITIES

The Bank is not engaged in any significant trust activities. However, it acts as custodian for some of the Term Finance Certificates it arranges and distributes on behalf of its customers.

41. RELATED PARTY TRANSACTIONS

The Bank has related party transactions with its associates, subsidiary companies, employee benefit plans and its Directors and executive officers (including their associates).

The Bank enters into transactions with related parties in the normal course of business. Contributions to and accruals in respect of staff retirement benefits and other benefit plans are made in accordance with the actuarial valuations / terms of the contribution plan. Remuneration to the executives / officers is determined in accordance with the terms of their appointment.

Details of transactions with related parties during the year, other than those which have been disclosed elsewhere in these unconsolidated financial statements, are as follows:

46 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

41.1 RELATED PARTY TRANSACTIONS 2016 2015 Key Key Other related Other related Directors management Subsidiaries Associates Directors management Subsidiaries Associates parties parties personnel personnel ------(Rupees in '000) ------Balances with other banks In current accounts - - 1,462,437 - - - - 1,284,195 - - In deposit accounts - - 1,648,597 - - - - 971,092 - - - - 3,111,034 - - - - 2,255,287 - -

Lendings to financial institutions - - 571,712 375,000 - - - 663,914 400,000 -

Investments Opening balance - - 4,897,174 6,914,292 3,895,328 - - 4,897,174 7,769,602 3,895,328 Investment made during the year - - - 484,690 - - - - 2,903,287 - Investment redeemed / disposed off during the year - - - (1,680,000) - - - - (3,758,597) - Closing balance - - 4,897,174 5,718,982 3,895,328 - - 4,897,174 6,914,292 3,895,328

Provision for diminution in value of investments - - - - 114,844 - - - - 114,844

Advances Opening balance 706 96,464 - 2,155,149 7,907,012 368 106,148 - 2,155,149 9,394,005 Addition during the year 18,822 62,900 - - 59,472,461 4,181 78,736 - - 44,320,432 Repaid during the year (17,189) (88,936) - - (50,471,781) (3,843) (59,342) - - (45,807,425) Transfer in / (out) - net - 23,714 - - - - (29,078) - - - Closing balance 2,339 94,142 - 2,155,149 16,907,692 706 96,464 - 2,155,149 7,907,012

Provision held against advances - - - 2,155,149 - - - - 2,155,149 -

Other Assets Interest mark-up accrued 7 67 1,989 4,144 235,602 - 56 9,686 8,187 91,419 Receivable from staff retirement fund - - - - 376,634 - - - - 211,687 Prepaid insurance - - - 5,206 ------Other receivable - - 10,018 - 30,164 - - 9,447 - 30,164

Provision against other assets - - - - 30,164 - - - - 30,164

Borrowings Opening balance - - 1,248,164 - - - - 1,230,900 - - Borrowings during the year - - 2,814,871 - 167,100 - - 5,428,932 - - Settled during the year - - (3,599,613) - - - - (5,411,668) - - Closing balance - - 463,422 - 167,100 - - 1,248,164 - -

Deposits and other accounts Opening balance 7,934,549 52,522 336,192 6,655,457 1,822,423 7,920,019 126,853 272,133 2,498,946 204,907 Received during the year 25,536,998 1,255,187 25,753,279 129,962,337 114,808,246 22,932,144 957,707 31,556,608 130,028,293 140,642,028 Withdrawn during the year (24,805,179) (1,143,273) (25,793,906) (127,735,572) (115,386,860) (22,917,614) (944,999) (31,492,549) (125,871,782) (139,317,293) Transfer (out) / in - net - (4,490) - - 360 - (87,039) - - 292,781 Closing balance 8,666,368 159,946 295,565 8,882,222 1,244,169 7,934,549 52,522 336,192 6,655,457 1,822,423

Other Liabilities Interest / mark-up payable on deposits 86,513 34 401 29,777 4,374 46,187 49 71 4,621 2,362 Interest / mark-up payable on borrowings - - 23,085 - 80 - - 3,170 - - Payable to staff retirement fund ------149,951 Unearned income - - 205 - 10,420 - - 187 - 10,420

Contingencies and Commitments Letter of guarantee - - 242,281 23,574 - - - 284,215 43,362 - Forward foreign exchange contracts purchase - - 6,083,795 - 198,737 - - 9,096,355 - 27,061 Forward foreign exchange contracts sale - - 6,225,246 - 203,148 - - 9,309,591 - 412,487 Cross Currency Swap - - - 522,051 - - - - 508,129 -

2016 2015 Key Key Other related Other related Directors management Subsidiaries Associates Directors management Subsidiaries Associates parties parties personnel personnel ------(Rupees in '000) ------

Mark-up / return / interest earned 10 5,186 40,496 28,098 501,888 9 4,086 41,462 41,322 808,387 Commission / charges recovered 242 533 460 13,885 11,159 115 360 579 10,573 10,217 Dividend income - - 693,423 296,728 791,303 - - 406,404 448,340 821,962 Net gain on sale of securities - - - 470,389 - - - - 618,948 - Other income - 2,621 83,862 6,461 12,514 - 5,488 41,304 10,571 2,102

Mark-up / return / interest paid 218,848 1,266 14,573 255,670 34,176 218,089 1,397 44,988 270,688 35,720 Remuneration paid - 702,909 - - - - 479,235 - - - Post employment benefits - 23,266 - - - - 17,157 - - - Non-executive directors' fee 41,963 - - - - 45,412 - - - - Net charge for defined contribution plans - - - - 237,496 - - - - 206,999 Net (reversal) / charge for defined benefit plans - - - - (338,394) - - - - 116,220 Other expenses - - - 55,621 120,737 - - 1,320 47,210 127,335

Insurance premium paid - - - 239,187 - - - - 247,140 - Insurance claims settled - - - 112,467 - - - - 132,181 -

47 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

42. CAPITAL ADEQUACY 42.1. The State Bank of Pakistan (SBP) through its BPRD Circular No. 6 dated August 15, 2013 has issued Basel III Capital instructions for Banks / DFIs. The revision to the previously applicable Capital Adequacy regulations pertain to components of eligible capital and related deductions. The amendments have been introduced with an aim to further strengthen the existing capital related rules. Basel III instructions have become effective from December 31, 2013; however, there is a transitional phase during which the complete requirements would become applicable with full implementation by December 31, 2019. The Bank’s capital adequacy is reported using the rules and ratios provided by the State Bank of Pakistan. The capital adequacy ratio is a measure of the amount of a Bank's capital expressed as a percentage of its risk weighted assets (RWAs). Banking operations are categorized as either Trading Book or Banking Book and RWAs are determined according to specific treatments as per the requirements of SBP that measure the varying levels of risk attached to on balance sheet and off-balance sheet exposures. Under the current capital adequacy regulations, credit risk and market risk exposures are measured using the Standardized Approach and operational risk is measured using the Basic Indicator Approach. Credit risk mitigants are also applied against the Bank’s exposures based on eligible collateral. The Bank performs its Internal Capital Adequacy Assessment Process (ICAAP) as per the guidelines provided by the SBP. The ICAAP has been approved by the Bank’s Board of Directors and submitted to the SBP. The Bank additionally covers risks not yet included under Pillar I, so as to carry adequate capital to cater for any future business requirements. The Bank plans to move towards the Advanced Approaches as prescribed under Basel Framework, including the Foundation Internal Ratings Based Approach for credit risk, Internal Models Approach for market risk and the Alternate Standardized Approach for operational risk. 42.2 Capital Management The objective of managing capital is to safeguard the Bank's ability to continue as a going concern. It is the policy of the Bank to maintain a strong capital base so as to maintain investor, depositor and market confidence and to sustain future development of the business. The Bank aims to maintain an optimum level of capital along with maximizing shareholders’ return as we consider a sound capital position as more appropriate as opposed to leverage supporting business growth.

Statutory minimum capital and capital adequacy requirements The SBP through its BSD Circular No. 07 dated April 15, 2009 has prescribed the minimum paid-up capital (net of accumulated losses) for Banks to be Rs.10,000 million. The paid-up capital of the Bank for the year ended December 31, 2016 stood at Rs.12,241.798 million (2015: Rs.12,241.798 million) and is in compliance with SBP requirements.

Banks are also required to maintain a minimum Capital Adequacy Ratio (CAR) of 10.0% plus capital conservation buffer of 0.65% of the risk weighted exposures of the Bank. Further, under Basel III instructions, Banks are also required to maintain a Common Equity Tier 1 (CET 1) ratio and Tier 1 ratio of 6.65% and 7.5%, respectively, as at December 31, 2016. As at December 31, 2016 the Bank is fully compliant with prescribed ratios as the Bank’s CAR is 15.13% whereas CET 1 and Tier 1 ratios both stood at 10.87%. The Bank and its individually regulated operations have complied with all capital requirements throughout the year.

Tier 1 capital comprises of Common Equity Tier 1 (CET 1) and Additional Tier 1 (AT 1) capital. CET 1 capital includes fully paid-up capital, balance in share premium account, reserve for issue of bonus shares, general reserves as per the financial statements and net unappropriated profits. AT 1 capital includes instruments meeting the prescribed SBP criteria e.g. perpetual non-cumulative preference shares. The deductions from Tier 1 capital include mainly: i) Book value of goodwill / intangibles; ii) Deficit on revaluation of available for sale investments; iii) Defined benefit pension fund asset iv) Investment in own shares v) Reciprocal cross holdings in equity capital instruments of other banks, financial institutions and insurance companies; vi) Investment in mutual funds above a prescribed ceiling; vii) Threshold deductions applicable from 2014 on deferred tax assets and certain investments; viii) 20% of investments in majority capital instruments of financial subsidiaries not consolidated in the statement of financial position during transition phase. Tier 2 capital includes general provisions for loan losses, surplus on the revaluation of fixed assets, fixed income financial instruments (AFS) and equity investments (AFS), foreign exchange translation reserves and subordinated debts (meeting the revised eligibility criteria). The deductions from Tier 2 include mainly: i) Reciprocal cross holdings in other capital instruments of other banks, financial institution and insurance companies; ii) 20% of investments in majority owned securities of financial subsidiaries not consolidated in the statement of financial position, during transition phase.

48 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

42.3 Capital Adequacy Ratio (CAR) disclosure template:

2016 2015 ------(Rupees in '000) ------Amount Amount Common Equity Tier 1 capital (CET1): Instruments and reserves 1 Fully Paid-up Capital/ Capital deposited with SBP 12,241,798 12,241,798 2 Balance in Share Premium Account - - 3 Reserve for issue of Bonus Shares - - 4 Discount on Issue of shares - - 5 General/ Statutory Reserves 27,197,615 24,424,604 6 Gain/(Losses) on derivatives held as Cash Flow Hedge - - 7 Unappropriated/unremitted profits/ (losses) 64,246,270 55,222,960 8 Minority Interests arising from CET1 capital instruments issued to third parties by consolidated bank subsidiaries (amount allowed in CET1 capital of the consolidation group) - - 9 CET 1 before Regulatory Adjustments 103,685,683 91,889,362 10 Total regulatory adjustments applied to CET1 (Note 42.3.1) 2,607,745 4,487,079 11 Common Equity Tier 1 101,077,938 87,402,283

Additional Tier 1 (AT 1) Capital 12 Qualifying Additional Tier-1 capital instruments plus any related share premium - - 13 of which: Classified as equity - - 14 of which: Classified as liabilities - - 15 Additional Tier-1 capital instruments issued to third parties by consolidated subsidiaries (amount allowed in group AT 1) - - 16 of which: instrument issued by subsidiaries subject to phase out - - 17 AT1 before regulatory adjustments - - 18 Total regulatory adjustment applied to AT1 capital (Note 42.3.2) - - 19 Additional Tier 1 capital after regulatory adjustments - - 20 Additional Tier 1 capital recognized for capital adequacy - -

21 Tier 1 Capital (CET1 + admissible AT1) (11+20) 101,077,938 87,402,283

Tier 2 Capital 24 Qualifying Tier 2 capital instruments under Basel III plus any related share premium - - 25 Tier 2 capital instruments subject to phaseout arrangement issued under pre-Basel 3 rules - - 26 Tier 2 capital instruments issued to third parties by consolidated subsidiaries (amount allowed in group tier 2) - - 27 of which: instruments issued by subsidiaries subject to phase out - - 28 General provisions or general reserves for loan losses-up to maximum of 1.25% of Credit Risk Weighted Assets 3,128,774 4,079,561 29 Revaluation Reserves (net of taxes) 27,092,425 24,299,837 30 of which: Revaluation reserves on fixed assets 15,282,476 13,161,043 31 of which: Unrealized gains/losses on AFS 11,809,949 11,138,794 32 Foreign Exchange Translation Reserves 13,256,890 13,977,699 33 Undisclosed/Other Reserves (if any) - - 34 T2 before regulatory adjustments 43,478,089 42,357,097 35 Total regulatory adjustment applied to T2 capital (Note 42.3.3) 1,195,328 1,792,992 36 Tier 2 capital (T2) after regulatory adjustments 42,282,761 40,564,105 37 Tier 2 capital recognized for capital adequacy 39,598,094 35,543,176 38 Portion of Additional Tier 1 capital recognized in Tier 2 capital - - 39 Total Tier 2 capital admissible for capital adequacy 39,598,094 35,543,176 40 TOTAL CAPITAL (T1 + admissible T2) (21+39) 140,676,033 122,945,459

41 Total Risk Weighted Assets (RWA) {for details refer Note 42.6} 929,617,344 839,464,747

Capital Ratios and buffers (in percentage of risk weighted assets) 42 CET1 to total RWA 10.87% 10.41% 43 Tier-1 capital to total RWA 10.87% 10.41% 44 Total capital to total RWA 15.13% 14.65% 45 Bank specific buffer requirement (minimum CET1 requirement plus capital conservation buffer plus any other buffer requirement) 6.65% 6.25% 46 of which: capital conservation buffer requirement 0.65% 0.25% 47 of which: countercyclical buffer requirement - - 48 of which: D-SIB or G-SIB buffer requirement - - 49 CET1 available to meet buffers (as a percentage of risk weighted assets) 4.22% 4.16%

National minimum capital requirements prescribed by SBP 50 CET1 minimum ratio 6.00% 6.00% 51 Tier 1 minimum ratio 7.50% 7.50% 52 Total capital minimum ratio 10.00% 10.00%

49 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 2016 2015 Regulatory Adjustments and Additional Information Amount Amounts Amount subject to Pre- Basel III treatment* ------(Rupees in '000) ------

42.3.1 Common Equity Tier 1 capital: Regulatory adjustments 1 Goodwill (net of related deferred tax liability) - - 2 All other intangibles (net of any associated deferred tax liability) 949,816 923,900 3 Shortfall in provisions against classified assets 670,120 4 Deferred tax assets that rely on future profitability excluding those arising from - - temporary differences (net of related tax liability) 5 Defined-benefit pension fund net assets 56,662 56,662 - 6 Reciprocal cross holdings in CET1 capital instruments of banking, financial and 334,864 1,040,472 insurance entities 7 Cash flow hedge reserve - - 8 Investment in own shares/ CET1 instruments 14,160 - 9 Securitization gain on sale - - 10 Capital shortfall of regulated subsidiaries - - 11 Deficit on account of revaluation from bank's holdings of fixed assets/ AFS - - 12 Investments in the capital instruments of banking, financial and insurance entities - - that are outside the scope of regulatory consolidation, where the bank does not own more than 10% of the issued share capital (amount above 10% threshold)

13 Significant investments in the common stocks of banking, financial and insurance - - entities that are outside the scope of regulatory consolidation (amount above 10% threshold) 14 Deferred Tax Assets arising from temporary differences (amount above 10% - - threshold, net of related tax liability) 15 Amount exceeding 15% threshold - - 16 of which: significant investments in the common stocks of financial entities - - 17 of which: deferred tax assets arising from temporary differences - - 18 National specific regulatory adjustments applied to CET1 capital - - 19 Investments in TFCs of other banks exceeding the prescribed limit - - 20 Any other deduction specified by SBP (mention details) - - 21 Adjustment to CET1 due to insufficient AT1 and Tier 2 to cover deductions 1,252,243 1,852,587 22 Total regulatory adjustments applied to CET1 (sum of 1 to 21) 2,607,745 4,487,079

42.3.2 Additional Tier-1 : regulatory adjustments 23 Investment in mutual funds exceeding the prescribed limit [SBP specific 56,915 59,595 adjustment] 24 Investment in own AT1 capital instruments - - 25 Reciprocal cross holdings in Additional Tier 1 capital instruments of banking, - - financial and insurance entities 26 Investments in the capital instruments of banking, financial and insurance entities - - that are outside the scope of regulatory consolidation, where the bank does not own more than 10% of the issued share capital (amount above 10% threshold)

27 Significant investments in the capital instruments of banking, financial and - - insurance entities that are outside the scope of regulatory consolidation 28 Adjustments to Additional Tier 1 due to insufficient Tier 2 to cover deductions - - 29 Portion of deduction applied 50:50 to Tier-1 and Tier-2 capital based on pre-Basel 1,195,328 1,195,328 1,792,992 III treatment which, during transitional period, remain subject to deduction from additional tier-1 capital 30 Total regulatory adjustment applied to AT1 capital (sum of 23 to 29) 1,252,243 1,852,587

50 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 2016 2015 Regulatory Adjustments and Additional Information Amount Amounts Amount subject to Pre- Basel III treatment* ------(Rupees in '000) ------

42.3.3 Tier 2 Capital: regulatory adjustments 31 Portion of deduction applied 50:50 to Tier-1 and Tier-2 capital based on pre-Basel 1,195,328 1,195,328 1,792,992 III treatment which, during transitional period, remain subject to deduction from tier-2 capital 32 Reciprocal cross holdings in Tier 2 instruments of banking, financial and insurance - - entities 33 Investment in own Tier 2 capital instrument - - 34 Investments in the capital instruments of banking, financial and insurance entities - - that are outside the scope of regulatory consolidation, where the bank does not own more than 10% of the issued share capital (amount above 10% threshold)

35 Significant investments in the capital instruments issued by banking, financial and - - insurance entities that are outside the scope of regulatory consolidation 36 Total regulatory adjustment applied to T2 capital (sum of 31 to 35) 1,195,328 1,792,992

2016 2015 ------Rupees in '000 ------42.3.4 Additional Information Amount Amount Risk Weighted Assets subject to pre-Basel III treatment 37 Risk weighted assets in respect of deduction items (which during the - - transitional period will be risk weighted subject to Pre-Basel III Treatment) (i) of which: deferred tax assets - - (ii) of which: Defined-benefit pension fund net assets (iii) of which: Recognized portion of investment in capital of banking, financial - - and insurance entities where holding is less than 10% of the issued common share capital of the entity (iv) of which: Recognized portion of investment in capital of banking, financial - - and insurance entities where holding is more than 10% of the issued common share capital of the entity Amounts below the thresholds for deduction (before risk weighting)

38 Non-significant investments in the capital of other financial entities - - 39 Significant investments in the common stock of financial entities - - 40 Deferred tax assets arising from temporary differences (net of related tax liability) - -

Applicable caps on the inclusion of provisions in Tier 2 41 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to - - standardized approach (prior to application of cap) 42 Cap on inclusion of provisions in Tier 2 under standardized approach - - 43 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal - - ratings-based approach (prior to application of cap) 44 Cap for inclusion of provisions in Tier 2 under internal ratings-based approach - -

51 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

42.4 Capital Structure Reconciliation

As at Dec 31, 2016 Balance Sheet Under as per regulatory Step 1 published scope of financial consolidation statements

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

Cash and balances with treasury banks 131,506,861 131,506,861 Balances with other banks 14,920,994 14,920,994 Lending to financial institutions 34,168,287 34,168,287 Investments 806,531,246 806,531,246 Advances 510,110,924 510,110,924 Operating fixed assets 35,581,758 35,581,758 Deferred tax assets - net - - Other assets 44,730,953 44,730,953

Total assets 1,577,551,023 1,577,551,023

Liabilities & Equity

Bills payable 11,756,422 11,756,422 Borrowings 201,549,619 201,549,619 Deposits and other accounts 1,179,887,048 1,179,887,048 Sub-ordinated loans - - Liabilities against assets subject to finance lease - - Deferred tax liability - net 4,691,544 4,691,544 Other liabilities 27,879,529 27,879,529

Total liabilities 1,425,764,162 1,425,764,162

Share capital 12,241,798 12,241,798 Reserves 40,454,505 40,454,505 Unappropriated profit 64,246,270 64,246,270

Total equity 116,942,573 116,942,573

Surplus on revaluation of assets - net of deferred tax 34,844,288 34,844,288

Total liabilities and equity 1,577,551,023 1,577,551,023

52 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

42.4 Capital Structure (Contd.) As at Dec 31, 2016 Balance Sheet Under Reference as per published regulatory Step 2 financial scope of statements consolidation

------(Rupees in '000) ------Assets Cash and balances with treasury banks 131,506,861 131,506,861 Balances with other banks 14,920,994 14,920,994 Lendings to financial institutions 34,168,287 34,168,287 Investments 806,531,246 806,531,246 of which: Non-significant capital investments in capital of other financial institutions - - a exceeding 10% threshold of which: significant capital investments in financial sector entities exceeding - - b regulatory threshold of which: Mutual Funds exceeding regulatory threshold 56,915 56,915 c of which: reciprocal crossholding of capital instrument 334,864 334,864 d of which: Investment in own shares/ CET1 instruments 14,160 14,160 e Advances 510,110,924 510,110,924

shortfall in provisions/ excess of total EL amount over eligible provisions under - - f IRB general provisions reflected in Tier 2 capital 3,128,774 3,128,774 g Fixed Assets 35,581,758 35,581,758 of which: Goodwill - - j of which: Intangibles 949,816 949,816 k Deferred Tax Assets - - of which: DTAs excluding those arising from temporary differences - - h of which: DTAs arising from temporary differences exceeding regulatory threshold - - i Other assets 44,730,953 44,730,953 of which: Defined-benefit pension fund net assets 56,662 56,662 l Total assets 1,577,551,023 1,577,551,023

Liabilities & Equity Bills payable 11,756,422 11,756,422 Borrowings 201,549,619 201,549,619 Deposits and other accounts 1,179,887,048 1,179,887,048 Sub-ordinated loans - - of which: eligible for inclusion in AT1 - - m of which: eligible for inclusion in Tier 2 - - n Liabilities against assets subject to finance lease - - Deferred tax liabilities 4,691,544 4,691,544 of which: DTLs related to goodwill - - o of which: DTLs related to intangible assets - - p of which: DTLs related to defined pension fund net assets - - q of which: other deferred tax liabilities 4,691,544 4,691,544 r Other liabilities 27,879,529 27,879,529 Total liabilities 1,425,764,162 1,425,764,162

Share capital 12,241,798 12,241,798 of which: amount eligible for CET1 12,241,798 12,241,798 s of which: amount eligible for AT1 - - t Reserves 40,454,505 40,454,505 of which: portion eligible for inclusion in CET1(provide breakup) 27,197,615 27,197,615 u of which: portion eligible for inclusion in Tier 2 13,256,890 13,256,890 v Unappropriated profit/ (losses) 64,246,270 64,246,270 w Minority Interest - - of which: portion eligible for inclusion in CET1 - - x of which: portion eligible for inclusion in AT1 - - y of which: portion eligible for inclusion in Tier 2 - - z Surplus on revaluation of assets 34,844,288 34,844,288 of which: Revaluation reserves on Property 19,703,328 19,703,328 aa of which: Unrealized Gains/Losses on AFS 15,140,960 15,140,960 In case of Deficit on revaluation (deduction from CET1) - - ab Total liabilities and equity 1,577,551,023 1,577,551,023

53 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

42.4 Capital Structure (Contd.)

Step 3 Component of Source based on regulatory capital reference number reported by bank from step 2 (Rupees in '000)

Common Equity Tier 1 capital (CET1): Instruments and reserves

1 Fully Paid-up Capital/ Capital deposited with SBP 12,241,798 (s) 2 Balance in Share Premium Account - 3 Reserve for issue of Bonus Shares - 4 General/ Statutory Reserves 27,197,615 (u) 5 Gain/(Losses) on derivatives held as Cash Flow Hedge - 6 Unappropriated/unremitted profits/(losses) 64,246,270 (w) 7 Minority Interests arising from CET1 capital instruments issued to third party by consolidated - (x) bank subsidiaries (amount allowed in CET1 capital of the consolidation group)

8 CET 1 before Regulatory Adjustments 103,685,683

Common Equity Tier 1 capital: Regulatory adjustments

9 Goodwill (net of related deferred tax liability) - (j) - (o) 10 All other intangibles (net of any associated deferred tax liability) 949,816 (k) - (p) 11 Shortfall of provisions against classified assets - (f) 12 Deferred tax assets that rely on future profitability excluding those arising from temporary - {(h) - (r} * x% differences (net of related tax liability) 13 Defined-benefit pension fund net assets 56,662 {(l) - (q)} * x% 14 Reciprocal cross holdings in CET1 capital instruments 334,864 (d) 15 Cash flow hedge reserve - 16 Investment in own shares/ CET1 instruments 14,160 17 Securitization gain on sale - 18 Capital shortfall of regulated subsidiaries - 19 Deficit on account of revaluation from bank's holdings of property/ AFS - (ab) 20 Investments in the capital instruments of banking, financial and insurance entities that are - (a) - (ac) - (ae) outside the scope of regulatory consolidation, where the bank does not own more than 10% of the issued share capital (amount above 10% threshold) 21 Significant investments in the capital instruments issued by banking, financial and insurance - (b) - (ad) - (af) entities that are outside the scope of regulatory consolidation (amount above 10% threshold)

22 Deferred Tax Assets arising from temporary differences (amount above 10% threshold, net of - (i) related tax liability) 23 Amount exceeding 15% threshold - 24 of which: significant investments in the common stocks of financial entities - 25 of which: deferred tax assets arising from temporary differences - 26 National specific regulatory adjustments applied to CET1 capital - 27 Investment in TFCs of other banks exceeding the prescribed limit - 28 Any other deduction specified by SBP (mention details) - 29 Regulatory adjustment applied to CET1 due to insufficient AT1 and Tier 2 to cover deductions 1,252,243

30 Total regulatory adjustments applied to CET1 (sum of 9 to 25) 2,607,745 Common Equity Tier 1 101,077,939

Additional Tier 1 (AT 1) Capital

31 Qualifying Additional Tier-1 instruments plus any related share premium - 32 of which: Classified as equity - (t) 33 of which: Classified as liabilities - (m) 34 Additional Tier-1 capital instruments issued by consolidated subsidiaries and held by third - (y) parties (amount allowed in group AT 1) 35 of which: instrument issued by subsidiaries subject to phase out - 36 AT1 before regulatory adjustments

54 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

Component of Source based on regulatory capital reference number reported by bank from step 2 (Rupees in '000)

Additional Tier 1 Capital: regulatory adjustments

37 Investment in mutual funds exceeding the prescribed limit (SBP specific adjustment) 56,915 38 Investment in own AT1 capital instruments - 39 Reciprocal cross holdings in Additional Tier 1 capital instruments - 40 Investments in the capital instruments of banking, financial and insurance entities that are - (ac) outside the scope of regulatory consolidation, where the bank does not own more than 10% of the issued share capital (amount above 10% threshold) 41 Significant investments in the capital instruments issued by banking, financial and insurance - (ad) entities that are outside the scope of regulatory consolidation 42 Portion of deduction applied 50:50 to core capital and supplementary capital based on pre- 1,195,328 Basel III treatment which, during transitional period, remain subject to deduction from tier-1 capital 43 Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover - deductions 44 Total of Regulatory Adjustment applied to AT1 capital 1,252,243 45 Additional Tier 1 capital 46 Additional Tier 1 capital recognized for capital adequacy -

Tier 1 Capital (CET1 + admissible AT1) 101,077,939

Tier 2 Capital 47 Qualifying Tier 2 capital instruments under Basel III - (n) 48 Capital instruments subject to phase out arrangement from tier 2 (Pre-Basel III instruments) -

49 Tier 2 capital instruments issued to third party by consolidated subsidiaries (amount allowed - (z) in group tier 2) 50 of which: instruments issued by subsidiaries subject to phase out - 51 General Provisions or general reserves for loan losses-up to maximum of 1.25% of Credit 3,128,774 (g) Risk Weighted Assets 52 Revaluation Reserves eligible for Tier 2 53 of which: portion pertaining to Property 15,282,476 portion of (aa) 54 of which: portion pertaining to AFS securities 11,809,949 55 Foreign Exchange Translation Reserves 13,256,890 (v) 56 Undisclosed/Other Reserves (if any) 57 T2 before regulatory adjustments 43,478,089 Tier 2 Capital: regulatory adjustments 58 Portion of deduction applied 50:50 to core capital and supplementary capital based on pre- 1,195,328 Basel III treatment which, during transitional period, remain subject to deduction from tier-2 capital 59 Reciprocal cross holdings in Tier 2 instruments - 60 Investment in own Tier 2 capital instrument - 61 Investments in the capital instruments of banking, financial and insurance entities that are - (ae) outside the scope of regulatory consolidation, where the bank does not own more than 10% of the issued share capital (amount above 10% threshold) 62 Significant investments in the capital instruments issued by banking, financial and insurance - (af) entities that are outside the scope of regulatory consolidation 63 Amount of Regulatory Adjustment applied to T2 capital 1,195,328 64 Tier 2 capital (T2) 42,282,761 65 Tier 2 capital recognized for capital adequacy 39,598,094 66 Excess Additional Tier 1 capital recognized in Tier 2 capital - 67 Total Tier 2 capital admissible for capital adequacy 39,598,094 TOTAL CAPITAL (T1 + admissible T2) 140,676,033

55 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

42.5 Main Features Template of Regulatory Capital Instruments

Set out below is the template that banks must use to ensure that the key features of all regulatory capital instruments are disclosed. Banks will be required to complete all of the cells for each outstanding regulatory capital instrument (please insert “NA” if the question is not applicable). Banks are required to report each regulatory capital instrument (including common shares) in a separate column of the template, such that the completed template would provide a "main features report" that summaries all of the regulatory capital instruments of the bank / banking group.

Disclosure template for main features of regulatory capital instruments

Main Features Common Shares 1 Issuer United Bank Limited 2 Unique identifier (eg PSX Symbol or Bloomberg identifier etc.) On PSX “UBL” and on Bloomberg “UBLS”. 3 Governing law(s) of the instrument Relevant Capital Market Laws Regulatory treatment 4 Transitional Basel III rules Common Equity Tier 1 5 Post-transitional Basel III rules Common Equity Tier 1 6 Eligible at solo/ group/ group&solo Group & Standalone 7 Instrument type Ordinary Shares 8 Amount recognized in regulatory capital (Currency in PKR thousands, as of reporting date) 12,241,798

9 Par value of instrument Rs 10 each 10 Accounting classification Shareholders' equity 11 Original date of issuance 1959 12 Perpetual or dated Perpetual 13 Original maturity date No maturity 14 Issuer call subject to prior supervisory approval Not applicable 15 Optional call date, contingent call dates and redemption amount Not applicable 16 Subsequent call dates, if applicable Not applicable Coupons / dividends 17 Fixed or floating dividend/ coupon Not applicable 18 coupon rate and any related index/ benchmark Not applicable 19 Existence of a dividend stopper No 20 Fully discretionary, partially discretionary or mandatory Fully discretionary 21 Existence of step up or other incentive to redeem No 22 Noncumulative or cumulative Not applicable 23 Convertible or non-convertible Non Convertible 24 If convertible, conversion trigger (s) Not applicable 25 If convertible, fully or partially Not applicable 26 If convertible, conversion rate Not applicable 27 If convertible, mandatory or optional conversion Not applicable 28 If convertible, specify instrument type convertible into Not applicable 29 If convertible, specify issuer of instrument it converts into Not applicable 30 Write-down feature Not applicable 31 If write-down, write-down trigger(s) Not applicable 32 If write-down, full or partial Not applicable 33 If write-down, permanent or temporary Not applicable 34 If temporary write-down, description of write-up mechanism Not applicable 35 Position in subordination hierarchy in liquidation (specify instrument type immediately senior to Common equity (ranks after all instrument creditors including depositors) 36 Non-compliant transitioned features Not applicable 37 If yes, specify non-compliant features Not applicable

56 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

42.6 Risk Weighted Assets

Capital Requirements Risk Weighted Assets 2016 2015 2016 2015 ------(Rupees in '000) ------Credit Risk On-Balance sheet Sovereign 6,214,276 5,579,264 62,142,764 55,792,640 Public Sector entities 978,715 962,846 9,787,149 9,628,458 Banks 4,442,695 4,288,920 44,426,950 42,889,198 Corporate 28,300,317 24,462,772 283,003,175 244,627,719 Retail 2,128,835 2,003,566 21,288,345 20,035,660 Residential Mortgages 140,495 144,164 1,404,945 1,441,637 Past Due loans 1,239,924 1,683,933 12,399,239 16,839,328 Listed equity investments 176,922 178,666 1,769,225 1,786,656 Unlisted equity investments 12,161 21,187 121,605 211,871 Commercial Entity 55,872 55,872 558,720 558,720 Operating Fixed Assets 3,463,194 3,140,185 34,631,942 31,401,855 Significant investment 896,496 597,664 8,964,960 5,976,641 Other assets 1,443,125 896,587 14,431,245 8,965,867 49,493,027 44,015,626 494,930,264 440,156,250

Off-Balance sheet Non-market related 10,100,831 8,539,032 101,008,311 85,390,319 Market related 165,447 176,642 1,654,469 1,766,420 10,266,278 8,715,674 102,662,780 87,156,739

Market Risk Interest rate risk 11,901,688 11,011,922 148,771,103 137,649,023 Equity position risk 3,816,538 4,152,250 47,706,729 51,903,125 Foreign Exchange risk 219,847 264,062 2,748,088 3,300,775 15,938,073 15,428,234 199,225,920 192,852,923

Operational Risk 10,623,870 9,543,907 132,798,380 119,298,833 86,321,248 77,703,440 929,617,344 839,464,745

Capital adequacy ratio Total eligible regulatory capital held 140,676,033 122,945,459 Total risk weighted assets 929,617,344 839,464,747 CET1 to total RWA 10.8% 10.4% Tier-1 capital to total RWA 10.8% 10.4% Total capital to total RWA 15.1% 14.6%

42.7 Credit risk - General disclosures

The Bank follows the Standardized Approach for its credit risk exposures, which sets out fixed risk weights corresponding to external credit ratings or type of exposure, whichever is applicable.

Under the Standardized Approach, the capital requirement is based on the credit rating assigned to counterparties by External Credit Assessment Institutions (ECAIs) duly recognized by the SBP. The Bank selects particular ECAIs for each type of exposure. The Bank utilizes the credit ratings assigned by Pakistan Credit Rating Agency (PACRA), Japan Credit Rating Company Limited – Vital Information Systems (JCR-VIS), Fitch, Moody’s and Standard & Poors (S & P). The Bank also utilizes rating scores of Export Credit Agencies (ECAs) participating in the “Arrangement on Officially Supported Export Credits”.

57 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

Types of exposure and ECAIs used

FITCH Moody's S & P PACRA JCR-VIS ECA scores

Corporates - P - P P - Banks P P P P P - Sovereigns - - - - - P Public sector enterprises - - - P P -

Mapping to SBP Rating Grades

For all exposures, the selected ratings are translated to the standard rating grades given by the SBP. The mapping tables used for converting ECAI ratings to SBP rating grades are given below:

Long Term Rating Grades mapping

SBP Rating grade Fitch Moody’s S & P PACRA JCR-VIS ECA Scores

1 AAA Aaa AAA AAA AAA 0 AA+ Aa1 AA+ AA+ AA+ 1 AA Aa2 AA AA AA AA- Aa3 AA- AA- AA- 2 A+ A1 A+ A+ A+ 2 A A2 A A A A- A3 A- A- A- 3 BBB+ Baa1 BBB+ BBB+ BBB+ 3 BBB Baa2 BBB BBB BBB BBB- Baa3 BBB- BBB- BBB- 4 BB+ Ba1 BB+ BB+ BB+ 4 BB Ba2 BB BB BB BB- Ba3 BB- BB- BB- 5 B+ B1 B+ B+ B+ 5 B B2 B B B 6 B- B3 B- B- B- 6 CCC+ and Caa1 and CCC+ and CCC+ and CCC+ and 7 below below below below below

Short Term Rating Grades mapping

SBP Rating Grade Fitch Moody’s S & P PACRA JCR-VIS

S1 F1 P-1 A-1+ A-1+ A-1+ S1 F1 P-1 A-1 A-1 A-1 S2 F2 P-2 A-2 A-2 A-2 S3 F3 P-3 A-3 A-3 A-3 S4 Others Others Others Others Others

58 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

42.8 Credit exposures subject to Standardized Approach

2016 2015

Rating category / Amount Deduction Amount Deduction Exposures Net amount Net amount risk outstanding CRM outstanding CRM weights

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

Cash and cash equivalents - 18,069,390 - 18,069,390 13,072,712 - 13,072,712 Claims on Federal and Provincial Governments and SBP, denominated in PKR - 497,451,486 128,836,359 368,615,127 445,363,390 143,583,595 301,779,795 Foreign currency claims on SBP arising out of statutory obligations in Pakistan - 9,135,162 - 9,135,162 9,274,554 - 9,274,554

Claims on other sovereigns and on 1 1,121,551 - 1,121,551 14,664 - 14,664 Government of Pakistan or provincial 2 27,915,202 - 27,915,202 27,730,887 - 27,730,887 governments or SBP denominated in 3 3,753,370 - 3,753,370 2,006,945 - 2,006,945 currencies other than PKR 4,5 11,270,408 - 11,270,408 8,228,796 - 8,228,796 6 28,941,753 - 28,941,753 27,342,796 - 27,342,796 Unrated ------73,002,284 - 73,002,284 65,324,088 - 65,324,088 Corporates 0 ------1 57,666,917 867 57,666,050 49,560,476 9,434,735 40,125,741 2 24,694,145 19,648 24,674,497 21,823,391 441,406 21,381,985 3,4 1,497,260 - 1,497,260 1,698,024 - 1,698,024 5,6 ------Unrated-1 220,747,322 27,370,889 193,376,433 192,468,105 25,043,077 167,425,028 Unrated-2 116,409,462 78,875 116,330,587 98,024,261 54,003 97,970,258 421,015,106 27,470,279 393,544,827 363,574,257 34,973,221 328,601,036 Claims on banks with maturity less than 3 months and 1,2,3 362,206 - 362,206 1,359,453 - 1,359,453 denominated in foreign currency 4,5 - - - 38,916 - 38,916 6 84,911 - 84,911 - - - Unrated 3,261,702 - 3,261,702 3,202,758 - 3,202,758 3,708,819 - 3,708,819 4,601,127 - 4,601,127 Banks - others 0 - - - - - 1 116,701,304 60,202,146 56,499,158 40,597,344 1,865,947 38,731,397 2,3 34,671,927 - 34,671,927 36,952,086 318,883 36,633,203 4,5 9,389,435 - 9,389,435 7,594,035 208,981 7,385,054 6 4,345,866 - 4,345,866 6,699,805 - 6,699,805 Unrated 30,569,544 - 30,569,544 29,987,458 - 29,987,458 195,678,076 60,202,146 135,475,930 121,830,728 2,393,811 119,436,917 Public sector enterprises 0 ------1 23,912,438 12,736,928 11,175,510 22,370,042 1,666,995 20,703,047 2,3 10,690,051 5,503,637 5,186,414 - - - 4,5 ------6 ------Unrated 90,347,819 73,513,237 16,834,582 81,758,557 63,855,886 17,902,671 124,950,308 91,753,802 33,196,506 104,128,599 65,522,881 38,605,718 Retail portfolio 75% 33,881,001 3,836,605 30,044,396 29,991,077 2,260,943 27,730,134 Claims fully secured by residential mortgage 35% 4,014,129 - 4,014,129 4,118,964 - 4,118,964 37,895,130 3,836,605 34,058,525 34,110,041 2,260,943 31,849,098 Equity investments - Listed 100% 1,769,225 - 1,769,225 1,786,656 - 1,786,656 - Unlisted 150% 81,070 - 81,070 141,247 - 141,247 - Commercial Entity (Holding grater than 10%) 1000% 55,872 - 55,872 55,872 - 55,872 1,906,167 - 1,906,167 1,983,775 - 1,983,775 Past due loans secured against mortgage of residential property: - less than 20% provided 100% 24,786 - 24,786 25,075 - 25,075 - greater than 20% provided 50% 50,443 - 50,443 88,074 - 88,074 75,229 - 75,229 113,149 - 113,149 Past due loans - others - Less than 20% provided 150% 4,722,399 - 4,722,399 8,304,838 - 8,304,838 - Between 20% to 50% provided 100% 4,778,654 - 4,778,654 3,426,454 - 3,426,454 - More than 50% provided 50% 973,957 - 973,957 1,773,010 - 1,773,010 10,475,010 - 10,475,010 13,504,302 - 13,504,302

Significant investment 250% 3,585,984 - 3,585,984 2,390,656 - 2,390,656 Fixed assets 100% 34,631,942 - 34,631,942 31,401,855 - 31,401,855 Others 100% 14,982,412 - 14,982,412 9,688,808 - 9,688,808

1,446,562,505 312,099,191 1,134,463,314 1,220,362,041 248,734,451 971,627,590

59 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

Credit Risk: Disclosures with respect to Credit Risk Mitigation for Standardized Approach

The Bank has adopted the Comprehensive Approach of Credit Risk Mitigation for the Banking Book. Under this approach, cash, lien on deposits, government securities and eligible guarantees etc. are considered as eligible collateral. The Bank has in place detailed guidelines with respect to the valuation and management of each of these types of collateral. Where the Bank’s exposure to an obligor is secured by eligible collateral, the Bank reduces its exposure for the calculation of capital requirement by the realizable amount of the collateral, adjusted for any applicable No credit risk mitigation benefit is taken in the Trading Book.

For each asset class, the risk weights as specified by the SBP or corresponding to the SBP rating grades are applied to the net amount for the calculation of Risk Weighted Assets.

42.9 Leverage Ratio

The State Bank of Pakistan (SBP) through its BPRD Circular No. 06 of 2013 has issued instructions regarding implementation of parallel run of leverage ratio reporting and its components from December 31, 2013 to December 31, 2017.During this period the final calibration, and any further adjustments to the definition, will be completed, with a view to set the leverage ratio as a separate capital standard on December 31, 2018. Banks are required to disclose the leverage ratio from December 31, 2015.

The Basel III leverage ratio is defined as the capital measure (the numerator) divided by the exposure measure (the denominator), with this ratio expressed as a percentage:

Leverage Ratio = Tier 1 capital (after related deductions) Total Exposure

As at December 31, 2016 the Bank’s Leverage ratio stood at 4.85% which is well above the minimum requirement of 3.0%

2016 2015 ------(Rupees in '000) ------

On-Balance Sheet Assets Cash and balances with treasury banks 131,506,861 112,011,276 Balances with other banks 14,920,994 16,859,118 Lendings to financial institutions 34,168,287 29,485,888 Investments 804,944,138 711,233,914 Advances 510,110,924 453,960,870 Operating fixed assets 34,631,942 31,401,854 Deferred tax assets - - Financial Derivatives (A.1) 792,340 1,242,036 Other assets 43,962,233 40,353,988 Total Assets (A) 1,575,037,719 1,396,548,944

Derivatives (On-Balance Sheet) Interest Rate 283,749 305,341 Equity - - Foreign Exchange & gold 508,591 936,695 Precious Metals (except gold) - - Commodities - - Credit Derivatives (protection brought & sold) - - Any other derivatives - - Total Derivatives (A.1) 792,340 1,242,036

60 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

2016 2015 ------(Rupees in '000) ------

Off-Balance Sheet Items excluding derivatives Direct Credit Substitutes (i.e. Acceptances, general guarantees for indebtness etc.) 40,243,856 30,596,505 Performance-related Contingent Liabilities (i.e. Guarantees) 110,067,510 108,443,418 Trade-related Contingent Liabilities (i.e. Letter of Credits) 145,823,726 127,144,385 Lending of securities or posting of securities as collaterals 153,557,471 122,771,194 Undrawn committed facilities (which are not cancellable) 45,085,158 19,419,745 Unconditionally cancellable commitments 9,694,433 9,900,613 Commitments in respect of operating leases - - Commitments for the acquisition of operating fixed assets 2,755,836 2,411,095 Other commitments - - Total Off-Balance Sheet Items excluding Derivatives (B) 507,227,990 420,686,955

Commitments in respect of Derivatives - Off Balance Sheet Items (Derivatives having negative Interest Rate 34,582 52,311 Equity - - Foreign Exchange & gold 1,791,964 2,085,773 Precious Metals (except gold) - - Commodities - - Credit Derivatives (protection sold and bought) - - Other derivatives - - Total Derivatives (C) 1,826,546 2,138,084

Tier-1 Capital 101,077,939 87,402,283 Total Exposures (sum of A,B and C) 2,084,092,255 1,819,373,983 Leverage Ratio 4.85% 4.80%

43. RISK MANAGEMENT

This section presents information about the Bank’s exposure to and its management and control of risks, in particular, the primary risks associated with its use of financial instruments such as credit, market, liquidity, and operational risks.

The Bank has an integrated risk management structure in place. The Board Risk and Compliance Committee (BRCC) oversees the entire risk management process of the Bank. Furthermore, Risk Management Committee has been formed which looks at all risks collectively at senior management level. The committee is chaired by the President and comprises of Heads of all Risk areas, Finance, Business etc. The Risk and Credit Policy Group is responsible for the development and implementation of all risk policies as approved by the BRCC / BoD. The group is organized into the functions of Market & Treasury Risk, Financial Institution Risk Management Unit (FIRMU), Credit Policy & Research, Consumer Credit Policy, Credit Risk Management and Operational Risk & Basel II. Each risk function is headed by a senior manager who reports directly to the Group Executive, Risk and Credit Policy. The role of the Risk and Credit Policy Group includes:

- Determining guidelines relating to the Bank’s risk appetite. - Recommending risk management policies in accordance with the Prudential Regulations, Basel II / III framework and international best practices. - Reviewing policies / manuals and ensuring that these are in accordance with BRCC / BoD approved risk management policies. - Developing systems and resources to review the key risk exposures of the Bank. - Approving credits and granting approval authority to qualified and experienced individuals. - Reviewing the adequacy of credit training across the Bank. - Organizing portfolio reviews focusing on quality assessment, risk profiles, industry concentrations, etc. - Setting systems to identify significant portfolio indicators, problem credits and level of provisioning required.

61 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

43.1 Credit risk

Credit risk is the risk that a customer or counterparty may not settle an obligation for full value, either when due or at any time thereafter. This risk arises from the potential that a customer's or counterparty’s willingness or ability to meet such an obligation is impaired, resulting in an economic loss to the Bank.

The credit risk management process is driven by the Bank's Credit Policy and Credit Manual, which provides policies and procedures in relation to credit initiation, approval, documentation and disbursement, credit maintenance and remedial management.

Individual credit authorities are delegated to credit officers by the Group Head - Risk & Credit Policy, according to their seasoning / maturity. Approvals for Corporate and Consumer loans are centralized, while approval authorities for Commercial, SME and Agri exposures are delegated to a Regional level. All credit policy functions are centrally organized.

Concentrations of credit risk exist if clients are engaged in similar activities, or are located in the same geographical region, or have comparable economic characteristics such that their ability to meet contractual obligations would be similarly affected by changes in economic, political or other conditions. The Bank manages, limits and controls concentrations of credit risk to individual counterparties and groups, and to industries, where appropriate. Limits are also applied to portfolios or sectors where the Bank considers it appropriate to restrict credit risk concentrations, or to areas of higher risk, or to control the rate of portfolio growth.

43.2 Segmental information

43.2.1 Segments by class of business 2016 Gross advances Deposits Contingencies and commitments (Rupees in '000) Percent (Rupees in '000) Percent (Rupees in '000) Percent

Chemical and pharmaceuticals 11,247,768 2.04% 3,337,614 0.28% 2,911,636 0.40% Agri business 57,047,144 10.36% 12,950,830 1.10% 52,778 0.01% Textile spinning 18,055,669 3.28% 413,205 0.04% 4,255,496 0.58% Textile weaving 6,691,939 1.22% 319,156 0.03% 1,933,418 0.27% Textile composite 25,607,196 4.65% - 0.00% 3,365,109 0.46% Textile others 15,228,871 2.77% 2,397,836 0.20% 2,205,971 0.30% Cement 5,182,402 0.94% 2,410,307 0.20% 1,890,002 0.26% Sugar 6,376,894 1.16% 2,388,205 0.20% 315,140 0.04% Shoes and leather garments 2,458,083 0.45% 787,972 0.07% 327,094 0.04% Automobile and transportation equipment 17,612,083 3.20% 6,293,256 0.53% 7,471,237 1.03% Financial 36,007,524 6.54% 14,074,360 1.19% 453,144,196 62.28% Insurance - 0.00% 24,854,391 2.11% - 0.00% Electronics and electrical appliances 14,790,288 2.69% 4,596,421 0.39% 675,306 0.09% Production and transmission of energy 101,906,289 18.51% 45,825,379 3.88% 49,314,330 6.78% Paper and allied 3,848,787 0.70% 589,135 0.05% 1,706,322 0.23% Surgical and metal 7,034 0.00% 4,559,269 0.39% 77,526 0.01% Contractors 8,141,350 1.48% 8,731,584 0.74% 26,609,262 3.66% Wholesale traders 19,785,045 3.59% 32,794,395 2.78% 5,520,961 0.76% Fertilizer dealers 18,005,581 3.27% 556,736 0.05% 4,874,513 0.67% Sports goods 41,990 0.01% 80,479 0.01% - 0.00% Food industries 23,863,907 4.33% 7,463,153 0.63% 1,908,394 0.26% Airlines 12,739,537 2.31% 2,550,346 0.22% 783,838 0.11% Cables 782,524 0.14% 457,963 0.04% 626,743 0.09% Construction 26,151,063 4.75% 17,018,282 1.44% 15,062,235 2.07% Containers and ports - 0.00% 151,778 0.01% 1,282,181 0.18% Engineering 13,863,026 2.52% 3,421,095 0.29% 11,760,689 1.62% Glass and allied 501,930 0.09% 160,710 0.01% 149,988 0.02% Hotels 1,852,660 0.34% 702,989 0.06% 2,092,784 0.29% Infrastructure - 0.00% 1,716,401 0.15% - 0.00% Media - 0.00% 774,621 0.07% - 0.00% Polyester and fiber 4,527,773 0.82% 6,308 0.00% 948,722 0.13% Telecommunication 15,659,911 2.84% 9,817,664 0.83% 21,033,604 2.89% Individuals 45,440,606 8.25% 732,563,365 62.09% 3,951,369 0.54% Others 37,211,436 6.76% 235,121,843 19.93% 101,373,964 13.93%

550,636,310 100.00% 1,179,887,048 100.00% 727,624,808 100.00%

62 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

2015 Contingencies and Gross advances Deposits commitments (Rupees in '000) Percent (Rupees in '000) Percent (Rupees in '000) Percent

Chemical and pharmaceuticals 9,327,735 1.88% 1,809,762 0.17% 2,659,971 0.36% Agri business 37,590,714 7.56% 11,874,669 1.13% 2,325,693 0.31% Textile spinning 14,705,839 2.96% 553,544 0.05% 2,848,725 0.38% Textile weaving 5,417,328 1.09% 255,592 0.02% 2,131,163 0.28% Textile composite 20,341,891 4.09% - 0.00% 1,559,303 0.21% Textile others 16,422,436 3.30% 1,998,225 0.19% 1,075,023 0.14% Cement 2,858,739 0.58% 2,383,333 0.23% 896,732 0.12% Sugar 14,018,803 2.82% 1,396,474 0.13% 107,631 0.01% Shoes and leather garments 1,958,673 0.39% 488,165 0.05% 1,041,359 0.14% Automobile and transportation equipment 10,587,725 2.13% 10,247,697 0.97% 4,249,808 0.57% Financial 30,261,665 6.09% 15,223,752 1.45% 513,448,033 68.55% Insurance - 0.00% 10,673,655 1.02% 121,361 0.02% Electronics and electrical appliances 8,456,906 1.70% 6,476,527 0.62% 3,651,241 0.49% Production and transmission of energy 100,062,164 20.13% 51,011,758 4.85% 47,985,564 6.41% Paper and allied 3,236,199 0.65% 686,934 0.07% 2,302,756 0.31% Surgical and metal 2,489 0.00% 5,972,287 0.57% 70,030 0.01% Contractors 12,777,129 2.57% 10,010,900 0.95% 16,626,752 2.22% Wholesale traders 21,637,963 4.35% 26,508,688 2.52% 4,523,502 0.60% Fertilizer dealers 11,267,831 2.27% 913,573 0.09% 5,663,803 0.76% Sports goods 38,994 0.01% 93,124 0.01% 229,470 0.03% Food industries 23,860,683 4.80% 3,941,517 0.37% 1,533,347 0.20% Airlines 15,848,181 3.19% 2,265,330 0.22% 457,699 0.06% Cables 986,195 0.20% 348,447 0.03% 309,760 0.04% Construction 19,788,776 3.98% 16,721,589 1.59% 16,385,198 2.19% Containers and ports - 0.00% 595,295 0.06% 1,924,480 0.26% Engineering 11,785,930 2.37% 3,284,407 0.31% 14,081,762 1.88% Glass and allied 348,047 0.07% 76,996 0.01% 236,136 0.03% Hotels 2,669,794 0.54% 1,400,307 0.13% 3,236,578 0.43% Infrastructure 431,286 0.09% 1,816,718 0.17% 6,159 0.00% Media - 0.00% 260,167 0.02% 60,509 0.01% Polyester and fiber 2,732,892 0.55% 6,404 0.00% 1,258,323 0.17% Telecommunication 14,516,669 2.92% 15,732,498 1.50% 18,757,589 2.50% Individuals 39,668,602 7.98% 647,621,253 61.61% 4,399,489 0.59% Others 43,423,632 8.74% 198,585,583 18.89% 72,901,786 9.73% 497,031,910 100.00% 1,051,235,170 100.00% 749,066,735 100.00%

43.2.2 Segment by Sector 2016 Gross advances Deposits Contingencies and commitments (Rupees in '000) Percent (Rupees in '000) Percent (Rupees in '000) Percent

Public / Government 153,653,795 27.90% 146,930,185 12.45% 96,756,329 13.30% Private 396,982,515 72.10% 1,032,956,863 87.55% 630,868,479 86.70% 550,636,310 100.00% 1,179,887,048 100.00% 727,624,808 100.00% 550,636,310 1,179,887,048 2015 Gross advances Deposits Contingencies and commitments (Rupees in '000) Percent (Rupees in '000) Percent (Rupees in '000) Percent

Public / Government 136,660,276 27.54% 126,568,747 12.04% 53,004,687 7.08% Private 360,371,634 72.46% 924,666,423 87.96% 696,062,048 92.92% 497,031,910 100.00% 1,051,235,170 100.00% 749,066,735 100.00%

63 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

43.2.3 Details of non performing advances and specific provisions by class of business segment

2016 2015 Classified Specific Classified Specific advances provision held advances provision held ------(Rupees in '000) ------

Chemical and pharmaceuticals 148,244 148,244 504,257 398,238 Agri business 380,707 256,571 415,651 328,849 Textile spinning 4,156,868 4,156,868 5,001,480 5,142,833 Textile weaving 408,409 408,409 536,323 536,323 Textile composite 4,288,595 3,982,674 4,239,761 4,019,343 Textile others 4,000,574 3,995,053 3,823,115 3,688,149 Sugar 848,069 776,819 158,123 44,585 Shoes and leather garments 689,772 689,772 688,402 688,402 Automobile and transportation equipment 173,155 172,705 200,394 200,394 Financial 1,596,722 1,596,722 1,884,031 1,863,981 Electronics and electrical appliances 1,260,205 471,505 276,224 202,510 Production and transmission of energy 6,140,951 5,052,753 6,853,347 4,069,380 Paper and allied 163,708 163,708 164,508 164,508 Wholesale traders 3,541,543 2,538,281 3,170,066 2,155,061 Fertilizer dealers 67,623 67,623 74,814 74,814 Sports goods - - 23,834 23,834 Food industries 2,441,732 2,049,338 921,899 783,239 Construction 2,523,191 2,521,191 3,604,270 3,339,694 Engineering 1,203,086 135,766 1,358,851 291,531 Hotels 475,494 475,494 475,494 475,494 Polyester and fiber 1,699,294 1,699,294 2,249,901 2,249,902 Individuals 4,999,976 3,183,651 6,918,575 4,317,813 Others 3,359,066 2,854,171 3,289,912 2,477,157 44,566,984 37,396,612 46,833,232 37,536,034

43.2.4 Details of non performing advances and specific provision by sector

2016 2015 Classified Specific Classified Specific advances provision held advances provision held ------(Rupees in '000) ------

Public / Government 1,089,630 22,313 1,089,630 22,313 Private 43,477,354 37,374,299 45,743,602 37,513,721 44,566,984 37,396,612 46,833,232 37,536,034

43.2.5 Geographical segment analysis

2016 Profit before Total assets Net assets Contingencies taxation employed employed and commitments ------(Rupees in '000) ------

Pakistan operations 41,679,626 1,305,891,720 107,445,556 632,363,179

Middle East 4,226,809 299,091,186 41,366,373 91,074,273 United States of America 37,206 11,573,555 2,462,422 16,326 Export Processing Zones 71,955 1,534,998 512,510 4,171,030 4,335,970 312,199,739 44,341,305 95,261,629

46,015,596 1,618,091,459 151,786,861 727,624,808

64 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

2015 Profit before Total assets Net assets Contingencies taxation employed employed and commitments ------(Rupees in '000) ------

Pakistan operations 37,908,536 1,146,594,978 100,090,385 660,947,021

Middle East 4,136,015 284,197,137 39,156,824 87,984,936 United States of America 74,433 7,172,640 2,426,167 1,685 Export Processing Zones 55,701 1,514,484 462,099 133,093 4,266,149 292,884,261 42,045,090 88,119,714

42,174,685 1,439,479,239 142,135,475 749,066,735

Total assets employed include intra group items of Rs. 40,540.436 million (2015: Rs. 38,828.396 million).

43.3 Market Risk

Market risk is the risk that the fair value of a financial instrument will fluctuate due to movements in market prices. It results from changes in interest rates, exchange rates and equity prices as well as from changes in the correlations between them. Each of these components of market risk consists of a general market risk and a specific market risk that is driven by the nature and composition of the portfolio.

Measuring and controlling market risk is usually carried out at a portfolio level. However, certain controls are applied, where necessary, to individual risk types, to particular books and to specific exposures. Controls are also applied to prevent any undue risk concentrations in trading books, taking into account variations in price, volatility, market depth and liquidity. These controls include limits on exposure to individual market risk variables as well as limits on concentrations of tenors and issuers.

Trading activities are centered in the Treasury and Capital Markets Group which facilitates clients and also runs proprietary positions. The Bank is active in the cash and derivative markets for equity, interest rate and foreign exchange.

The Market and Treasury Risk division performs market risk management activities. Within this division, the Market Risk Management unit is responsible for the development and review of market risk policies and processes, and is involved in research, financial modeling and testing / implementation of risk management systems, while Treasury Middle Office is responsible for implementation and monitoring of market risk and other policies, escalation of deviations to senior management, and MIS reporting.

The functions of the Market Risk Management unit are as follows:

- To keep the market risk exposure within the Bank’s risk appetite as assigned by the BoD and the BRCC.

- To develop, review and upgrade procedures for the effective implementation of market risk management policies approved by the BoD and BRCC.

- To review new product proposals and propose / recommend / approve procedures for the management of their market risk. Various limits are assigned to different businesses on a product / portfolio basis. The products are approved through product programs, where risks are identified and limits and parameters are set. Any transactions / products falling outside these product programs are approved through separate transaction / product memos.

- To maintain a comprehensive database for performing risk analysis, stress testing and scenario analysis. Stress testing activities are performed on a quarterly basis on both the Banking and Trading books.

65 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

43.3.1 Foreign Exchange Risk 2016 Assets Liabilities Off - balance Net currency sheet items exposure ------(Rupees in '000) ------

Pakistan Rupee 1,248,172,097 1,074,639,549 (23,292,889) 150,239,659 US Dollar 173,342,067 97,588,465 (73,845,865) 1,907,737 Pound Sterling 2,674,719 19,584,949 17,163,381 253,151 Japanese Yen 21,492 6,528 (11,749) 3,215 Euro 1,667,112 8,007,130 6,490,019 150,001 UAE Dirham 98,808,232 160,743,572 61,312,602 (622,738) Bahraini Dinar 13,468,415 20,218,063 6,309,942 (439,706) Qatari Riyal 26,785,382 31,840,101 4,916,279 (138,440) Other Currencies 12,611,507 13,135,805 958,280 433,982 1,577,551,023 1,425,764,162 - 151,786,861

2015 Assets Liabilities Off - balance Net currency sheet items exposure ------(Rupees in '000) ------

Pakistan Rupee 1,087,037,989 928,414,686 (13,693,395) 144,929,908 US Dollar 167,187,602 90,658,977 (79,191,983) (2,663,358) Pound Sterling 2,265,177 19,599,808 17,542,362 207,731 Japanese Yen 6,263 118,852 114,008 1,419 Euro 1,210,550 12,016,145 10,798,862 (6,733) UAE Dirham 95,059,845 140,645,046 45,705,786 120,585 Bahraini Dinar 12,376,067 23,707,222 11,256,095 (75,060) Qatari Riyal 21,491,162 28,378,483 6,331,700 (555,621) Other Currencies 14,016,188 14,976,149 1,136,565 176,604 1,400,650,843 1,258,515,368 - 142,135,475 - Foreign Exchange Risk is the risk that the fair value of a financial instrument will fluctuate due to changes in foreign exchange rates. Exposures are monitored by currency to ensure that they remain within the established limits for each currency. Exposures are also monitored on an overall basis to ensure compliance with the Bank’s SBP approved Foreign Exchange Exposure Limit.

The Bank is an active participant in the cash and derivatives markets for currencies and carries currency risk from these trading activities, conducted primarily by the Treasury and Capital Markets Group (TCM). These trading exposures are monitored through prescribed stress tests and sensitivity analyses.

The Bank's reporting currency is the Pakistan Rupee, but its assets, liabilities, income and expenses are denominated in multiple currencies. From time to time, TCM proactively hedges foreign currency exposures resulting from its market making activities, subject to pre-defined limits.

43.3.2 Equity position risk

Equity position risk is the risk that the fair value of a financial instrument will fluctuate due to changes in the prices of individual stocks or the levels of equity indices. The Bank’s equity book comprises of held for trading (HFT) and available for sale (AFS) portfolios. The objective of the HFT portfolio is to make short-term capital gains, whilst the AFS portfolio is maintained with a medium term view of earning both capital gains and dividend income. Product program manuals have been developed to provide guidelines on the objectives and policies, risks and mitigants, limits and controls for the equity portfolios of the Bank.

43.3.3 Yield / interest rate risk Interest rate risk is the risk that fair value of a financial instrument will fluctuate as a result of changes in interest rates, including changes in the shape of yield curves. Interest rate risk is inherent in many of the Bank's businesses and arises from mismatches between the contractual maturities or the re-pricing of on and off balance sheet assets and liabilities. The interest rate sensitivity profile is prepared on a quarterly basis based on the re-pricing or contractual maturities of assets and liabilities.

Interest rate risk is monitored and managed by performing periodic gap analysis, sensitivity analysis and stress testing and taking appropriate actions where required.

66 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

43.3.4 Mismatch of interest rate sensitive assets and liabilities 2016 Exposed to yield / interest rate risk Non-interest Effective Over 3 Over 6 bearing yield / Total Over 1 month Over 1 year Over 2 years Over 3 years Over 5 years Upto 1 month months to 6 months to 1 Over 10 years financial interest rate to 3 months to 2 years to 3 years to 5 years to 10 years months year instruments On-balance sheet financial instruments % ------(Rupees in '000) ------

Assets Cash and balances with treasury banks 0.01% 131,506,861 8,617,552 ------122,889,309 Balances with other banks 1.56% 14,920,994 7,578,877 2,000,000 ------5,342,117 Lendings to financial institutions 4.48% 34,168,287 3,376,955 19,610,513 3,851,990 523,002 4,703,225 1,305,313 797,289 - - - Investments 8.29% 806,531,246 31,092,617 70,579,983 22,533,948 47,107,512 129,174,346 109,624,534 181,982,635 177,241,723 3,754,207 33,439,741 Advances 6.36% - Performing 502,940,552 89,285,288 297,318,124 72,894,699 11,442,402 7,304,847 6,561,660 4,845,977 5,505,909 7,781,646 Non-performing 7,170,372 ------7,170,372 Other assets 0.00% 28,770,658 ------28,770,658 1,526,008,970 139,951,289 389,508,620 99,280,637 59,072,916 141,182,418 117,491,507 187,625,901 182,747,632 11,535,853 197,612,197 Liabilities Bills payable 0.00% 11,756,422 ------11,756,422 Borrowings 5.28% 201,549,619 163,011,950 27,568,121 7,843,330 3,026,274 99,944 - - - - - Deposits and other accounts 2.69% 1,179,887,048 519,079,769 61,355,687 47,933,323 15,629,871 4,969,275 11,702,862 43,416,816 346,482 - 475,452,963 Other liabilities 0.00% 22,147,747 ------22,147,747 1,415,340,836 682,091,719 88,923,808 55,776,653 18,656,145 5,069,219 11,702,862 43,416,816 346,482 - 509,357,132

On-balance sheet gap 110,668,134 (542,140,430) 300,584,812 43,503,984 40,416,771 136,113,199 105,788,645 144,209,085 182,401,150 11,535,853 (311,744,935)

Net non financial assets 41,118,727

Total net assets 151,786,861

Off-balance sheet financial instruments Interest Rate Derivatives - Long position 6,986,094 - 634,181 69,732 - 648,000 5,634,181 - - - - Interest Rate Derivatives - Short position (6,986,094) - (1,282,181) (5,069,732) - - (634,181) - - - - Cross Currency Swap - Long position 522,051 - 522,051 ------Cross Currency Swap - Short position (522,051) - (522,051) ------FX Options - Long position 213,081 143,248 69,833 ------FX Options - Short position (213,081) (143,248) (69,833) ------Forward Purchase of Government Securities 4,998,400 4,998,400 ------Forward Sale of Government Securities (3,553,866) (3,553,866) ------Foreign currency forward purchases 186,835,721 58,295,855 72,456,371 43,763,031 12,320,464 ------Foreign currency forward sales (162,987,703) (59,953,361) (55,208,929) (36,849,566) (10,975,847) ------Off-balance sheet Gap 25,292,552 (212,972) 16,599,442 1,913,465 1,344,617 648,000 5,000,000 - - - -

Total Yield / Interest Rate Risk Sensitivity Gap 135,960,686 (542,353,402) 317,184,254 45,417,449 41,761,388 136,761,199 110,788,645 144,209,085 182,401,150 11,535,853 (311,744,935)

Cumulative Yield / Interest Rate Risk Sensitivity Gap (542,353,402) (225,169,148) (179,751,699) (137,990,311) (1,229,112) 109,559,533 253,768,618 436,169,768 447,705,621 135,960,686

67 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

2015 Effective Total Exposed to yield / interest rate risk Non-interest yield / Upto 1 month Over 1 month Over 3 Over 6 Over 1 year Over 2 years Over 3 years Over 5 years Over 10 years bearing interest rate to 3 months months to 6 months to 1 to 2 years to 3 years to 5 years to 10 years financial months year instruments

On-balance sheet financial instruments % ------(Rupees in '000) ------Assets Cash and balances with treasury banks 0.00% 112,011,276 8,834,266 ------103,177,010 Balances with other banks 0.98% 16,859,118 7,488,240 2,930,007 ------6,440,871 Lendings to financial institutions 4.92% 24,094,768 7,829,201 2,803,531 2,660,086 4,702,713 2,270,908 2,656,053 356,050 816,226 - - Investments 9.41% 719,518,093 55,657,986 37,515,031 28,613,760 104,547,985 58,836,683 130,159,521 111,271,404 149,066,951 3,633,728 40,215,044 Advances 7.74% - Performing 446,116,682 99,006,318 270,448,711 40,932,808 6,849,354 5,218,726 6,415,291 4,006,731 10,268,976 2,969,767 - Non-performing 9,297,198 ------9,297,198 Other assets 0.00% 30,778,317 ------30,778,317 1,358,675,452 178,816,011 313,697,280 72,206,654 116,100,052 66,326,317 139,230,865 115,634,185 160,152,153 6,603,495 189,908,440 Liabilities Bills payable 0.00% 13,391,739 ------13,391,739 Borrowings 5.93% 163,131,947 126,064,735 15,311,293 5,524,942 8,278,403 444,576 321,950 1,102,800 5,502,848 - 580,400 Deposits and other accounts 3.11% 1,051,235,170 472,383,243 83,743,641 50,692,366 21,603,170 7,271,026 7,375,391 10,598,104 5,628,096 291,123 391,649,010 Other liabilities 0.00% 21,263,607 ------21,263,607 1,249,022,463 598,447,978 99,054,934 56,217,308 29,881,573 7,715,602 7,697,341 11,700,904 11,130,944 291,123 426,884,756 On-balance sheet gap 109,652,989 (419,631,967) 214,642,346 15,989,346 86,218,479 58,610,715 131,533,524 103,933,281 149,021,209 6,312,372 (236,976,316) Net non financial assets 32,482,486 Total net assets 142,135,475 Off-balance sheet financial instruments Interest Rate Derivatives - Long position 10,462,192 - 1,328,230 104,741 - 104,741 1,073,250 7,851,230 - - - Interest Rate Derivatives - Short position (10,462,192) - (1,924,480) (7,104,741) - (104,741) (477,000) (851,230) - - - Cross Currency Swap - Long position 508,129 - 508,129 ------Cross Currency Swap - Short position (508,129) - (508,129) ------FX Options - Long position 370,073 ------370,073 FX Options - Short position (370,073) ------(370,073) Forward Purchase of Government Securities ------Forward Sale of Government Securities (10,483,779) (10,483,779) ------Foreign currency forward purchases 211,486,719 126,139,788 79,571,498 5,053,527 721,906 ------Foreign currency forward sales (197,523,023) (111,557,236) (79,096,871) (5,275,900) (1,593,016) ------Off-balance sheet Gap 3,479,917 4,098,773 (121,623) (7,222,373) (871,110) - 596,250 7,000,000 - - - Total Yield / Interest Rate Risk Sensitivity Gap 113,132,906 (415,533,194) 214,520,723 8,766,973 85,347,369 58,610,715 132,129,774 110,933,281 149,021,209 6,312,372 (236,976,316) Cumulative Yield / Interest Rate Risk Sensitivity Gap (415,533,194) (201,012,471) (192,245,498) (106,898,129) (48,287,414) 83,842,360 194,775,641 343,796,850 350,109,222 113,132,906

68 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 43.4 Liquidity risk Liquidity risk is the risk that the Bank may be unable to meet its obligations or to fund increases in assets as they fall due without incurring unacceptable cost or losses. The Assets and Liability Management Committee (ALCO) of the Bank is responsible for the oversight of liquidity management and meets on a monthly basis or more frequently, if required. The Bank’s approach to liquidity management is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking sustained damage to business franchises. A centralized approach is adopted, based on an integrated framework incorporating an assessment of all material known and expected cash flows and the availability of collateral which could be used to secure additional funding if required. The framework entails careful monitoring and control of the daily liquidity position, and regular liquidity stress testing under a variety of scenarios. These encompass both normal and stressed market conditions, including general market crises and the possibility that access to markets could be impacted by a stress event affecting some part of the Bank’s business.

43.4.1 Maturities of assets and liabilities - based on working prepared by the Assets and Liabilities Management Committee (ALCO) of the Bank Assets and Liabilities having contractual maturity dates are bucketed as per their respective maturities. The maturity profile of non-contractual deposits and bills payable is estimated using an Exponentially Weighted Moving Average model based on data for the last seven years. The maturity profile of certain non-contractual assets and liabilities which are related to specific assets and liabilities follows the maturity profile of the underlying asset or liability. The maturity profile of other non-contractual assets and liabilities is expected to follow historical patterns of behavior. The methodology and the assumptions used to derive the maturity profile of non-contractual assets and liabilities have been approved by ALCO.

2016 Total Upto 1 month Over 1 month Over 3 months Over 6 months Over 1 year to Over 2 years Over 3 years Over 5 years Over 10 years to 3 months to 6 months to 1 year 2 years to 3 years to 5 years to 10 years ------(Rupees in '000) ------Assets Cash and balances with treasury banks 131,506,861 76,592,440 4,041,134 3,960,472 5,733,293 4,936,702 3,418,617 5,421,144 15,990,082 11,412,977 Balances with other banks 14,920,994 12,920,994 2,000,000 ------Lendings to financial institutions 34,168,287 2,627,465 16,318,642 3,566,375 823,002 5,510,853 4,830,387 225,825 265,738 - Investments 806,531,246 31,738,157 70,108,740 8,671,646 66,608,308 134,155,282 101,991,780 198,044,685 173,990,678 21,221,970 Advances - Performing 502,940,552 116,263,682 117,781,565 49,053,920 21,185,362 15,038,818 25,772,686 66,319,700 70,886,027 20,638,792 Advances - Non-performing 7,170,372 ------7,170,372 Operating fixed assets 35,581,758 194,110 1,148,514 1,755,526 266,389 559,163 560,123 5,388,772 1,880,420 23,828,741 Other assets 44,730,953 5,707,333 5,283,509 20,955,494 11,439,719 26,392 24,686 24,043 251,497 1,018,280 1,577,551,023 246,044,181 216,682,104 87,963,433 106,056,073 160,227,210 136,598,279 275,424,169 263,264,442 85,291,132 Liabilities Bills payable 11,756,422 3,011,259 2,204,387 2,160,388 4,380,388 - - - - - Borrowings 201,549,619 163,928,135 15,023,397 8,223,042 3,261,913 186,168 194,690 817,585 9,426,000 488,689 Deposits and other accounts 1,179,887,048 143,143,116 138,494,886 90,930,243 97,940,038 86,994,141 84,547,486 101,096,692 255,633,054 181,107,392 Deferred tax liability 4,691,544 - - - 1,172,886 1,172,886 1,172,886 1,172,886 - - Other liabilities 27,879,529 9,273,476 2,160,321 464,337 2,460,228 1,123,745 1,017,112 1,114,490 4,902,255 5,363,565 1,425,764,162 319,355,986 157,882,991 101,778,010 109,215,453 89,476,940 86,932,174 104,201,653 269,961,309 186,959,646 Net assets 151,786,861 (73,311,805) 58,799,113 (13,814,577) (3,159,380) 70,750,270 49,666,105 171,222,516 (6,696,867) (101,668,514)

Represented by: Share capital 12,241,798 Reserves 40,454,505 Unappropriated profit 64,246,270 Surplus on revaluation of assets 34,844,288 151,786,861

69 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

2015 Total Upto 1 month Over 1 month Over 3 months Over 6 months Over 1 year to Over 2 years Over 3 years Over 5 years Over 10 years to 3 months to 6 months to 1 year 2 years to 3 years to 5 years to 10 years

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

Assets Cash and balances with treasury banks 112,011,276 68,523,683 2,658,880 2,605,808 3,772,243 5,247,683 4,026,689 6,385,408 13,446,385 5,344,497 Balances with other banks 16,859,118 16,859,118 ------Lendings to financial institutions 24,094,768 6,327,316 882,492 1,646,424 5,232,401 3,069,238 5,442,106 1,349,700 145,091 - Investments 719,518,093 53,683,660 33,400,847 22,741,393 129,578,556 59,737,275 134,258,337 113,443,727 154,974,036 17,700,262 Advances - Performing 446,116,682 106,386,510 83,076,952 43,979,362 26,429,235 16,936,500 20,641,300 91,372,545 47,150,729 10,143,549 Advances - Non-performing 9,297,198 ------9,297,198 Operating fixed assets 31,630,374 137,955 532,668 816,327 163,943 626,672 489,105 3,699,497 2,255,423 22,908,784 Other assets 41,123,334 18,464,959 8,119,726 3,325,717 8,005,671 208,908 191,573 1,260,187 591,411 955,182 1,400,650,843 270,383,201 128,671,565 75,115,031 173,182,049 85,826,276 165,049,110 217,511,064 218,563,075 66,349,472

Liabilities Bills payable 13,391,739 4,759,755 3,483,823 3,414,285 1,733,876 - - - - - Borrowings 163,131,947 126,774,800 17,872,337 5,643,176 6,035,758 553,776 767,819 1,619,487 3,695,925 168,869 Deposits and other accounts 1,051,235,170 146,855,480 138,427,705 90,968,092 89,416,761 95,652,454 78,460,024 110,760,238 219,918,599 80,775,817 Deferred tax liability 4,186,406 - - - 1,046,602 1,046,602 1,046,601 1,046,601 - - Other liabilities 26,570,106 10,355,424 2,377,887 2,501,368 968,884 1,092,784 843,842 1,300,063 3,036,693 4,093,161 1,258,515,368 288,745,459 162,161,752 102,526,921 99,201,881 98,345,616 81,118,286 114,726,389 226,651,217 85,037,847

Net assets 142,135,475 (18,362,258) (33,490,187) (27,411,890) 73,980,168 (12,519,340) 83,930,824 102,784,675 (8,088,142) (18,688,375)

Represented by:

Share capital 12,241,798 Reserves 38,402,303 Unappropriated profit 55,222,960 Surplus on revaluation of assets 36,268,414 142,135,475

70 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

43.4.2 Maturities of assets and liabilities - based on contractual maturity of the assets and liabilities of the Bank

The maturity profile presented below has been prepared as required by IFRS on the basis of contractual maturities, except for products that do not have a contractual maturity which are shown in the first bucket. 2016 Total Upto 1 month Over 1 Over 3 Over 6 Over 1 year Over 2 years Over 3 years Over 5 years Over 10 month to 3 months to 6 months to 1 to 2 years to 3 years to 5 years to 10 years years months months year ------(Rupees in '000) ------Assets

Cash and balances with treasury banks 131,506,861 131,506,861 ------Balances with other banks 14,920,994 12,920,994 2,000,000 ------Lendings to financial institutions 34,168,287 2,941,260 16,318,642 3,252,452 823,002 5,510,853 5,194,313 127,765 - - Investments 806,531,246 78,824,599 54,956,011 17,863,289 47,088,767 133,349,226 109,630,801 183,697,691 177,374,227 3,746,635 Advances 510,110,924 116,263,682 117,781,565 49,053,920 21,185,362 15,038,818 25,772,686 66,319,700 70,886,027 27,809,164 Operating fixed assets 35,581,758 194,110 1,148,514 1,755,526 266,389 559,163 560,123 5,388,772 1,880,420 23,828,741 Other assets 44,730,953 5,707,335 5,283,509 20,955,494 11,439,719 26,392 24,686 24,043 251,497 1,018,278 1,577,551,023 348,358,841 197,488,241 92,880,681 80,803,239 154,484,452 141,182,609 255,557,971 250,392,171 56,402,818 Liabilities

Bills payable 11,756,422 11,756,422 ------Borrowings 201,549,619 163,175,690 15,100,193 8,683,435 2,762,490 118,277 198,880 1,379,672 9,729,395 401,587 Deposits and other accounts 1,179,887,048 979,014,011 88,780,326 50,220,338 18,804,119 26,415,337 7,529,916 9,053,455 69,546 - Deferred tax liability - net 4,691,544 4,691,544 ------Other liabilities 27,879,529 24,085,260 281,444 69,012 9,622 - - - - 3,434,191 1,425,764,162 1,182,722,927 104,161,963 58,972,785 21,576,231 26,533,614 7,728,796 10,433,127 9,798,941 3,835,778 Net assets 151,786,861 (834,364,086) 93,326,278 33,907,896 59,227,008 127,950,838 133,453,813 245,124,844 240,593,230 52,567,040

Represented by:

Share capital 12,241,798 Reserves 40,454,505 Unappropriated profit 64,246,270 Surplus on revaluation of assets 34,844,288 151,786,861

71 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

2015 Total Upto 1 month Over 1 Over 3 Over 6 Over 1 year Over 2 years Over 3 years Over 5 years Over 10 month to 3 months to 6 months to 1 to 2 years to 3 years to 5 years to 10 years years months months year ------(Rupees in '000) ------Assets

Cash and balances with treasury banks 112,011,276 112,011,276 ------Balances with other banks 16,859,118 13,929,117 2,930,001 ------Lendings to financial institutions 24,094,768 6,327,316 882,492 1,646,424 5,232,401 3,069,238 5,442,106 1,349,700 145,091 - Investments 719,518,093 91,107,443 33,381,145 22,741,393 104,519,593 59,737,275 134,258,337 113,443,727 154,974,036 5,355,144 Advances 455,413,880 106,386,510 83,076,952 43,979,362 26,429,235 16,936,500 20,641,300 91,372,545 47,150,729 19,440,747 Operating fixed assets 31,630,374 137,955 532,668 816,327 163,943 626,672 489,105 3,699,497 2,255,423 22,908,784 Other assets 41,123,334 34,388,933 5,483,801 380,198 775,137 77,233 - - - 18,032 1,400,650,843 364,288,550 126,287,059 69,563,704 137,120,309 80,446,918 160,830,848 209,865,469 204,525,279 47,722,707 Liabilities

Bills payable 13,391,739 13,391,739 ------Borrowings 163,131,947 126,774,800 17,872,337 5,643,176 6,035,758 553,776 767,819 1,619,487 3,695,925 168,869 Deposits and other accounts 1,051,235,170 866,713,576 87,209,373 45,152,494 23,874,286 5,423,709 9,226,661 8,615,778 5,016,919 2,374 Deferred tax liability - net 4,186,406 4,186,406 ------Other liabilities 26,570,106 23,091,528 319,467 8,943 3,705 - - - - 3,146,463 1,258,515,368 1,034,158,049 105,401,177 50,804,613 29,913,749 5,977,485 9,994,480 10,235,265 8,712,844 3,317,706 Net assets 142,135,475 (669,869,499) 20,885,882 18,759,091 107,206,560 74,469,433 150,836,368 199,630,204 195,812,435 44,405,001

Represented by:

Share capital 12,241,798 Reserves 38,402,303 Unappropriated profit 55,222,960 Surplus on revaluation of assets 36,268,414 142,135,475

72 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

43.5 Operational risk

Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.

The Operational Risk & Basel II Division is primarily responsible for the oversight of operational risk management across the Bank. The operational risk management framework of the Bank is governed by the Operational Risk Management Policy and Procedures, while the implementation is supported by an operational risk management system and designated operational risk coordinators within different units across the bank. The framework is in line with international best practices, flexible enough to implement in stages and permits the overall approach to evolve in response to organizational learning and future requirements.

Loss data, collected through a well defined program, is evaluated and processes are reviewed for improvements in mitigation techniques. Periodic workshops are conducted for Risk & Control Self Assessment and key risk exposures are identified and assessed against existing controls to evaluate improvement opportunities. Key Risk Indicators are also defined for monitoring of risk exposures. New products, systems, activities and processes, are subject to comprehensive operational risk assessments, before implementation.

Business Continuity Plans have been implemented across the bank, clearly defining the roles and responsibilities of respective stakeholders, and covering recovery strategy, IT and structural backups, scenario and impact analyses and testing directives. The outsourcing policy has also been augmented to address risks associated with such arrangements.

44. ISLAMIC BANKING BUSINESS

The Bank operates 47 (2015: 41) Islamic Banking Branches and 141 (2015: 141 ) Islamic Banking windows.

The statement of financial position of the Bank's Islamic Banking Branches as at December 31 is as follows:

Note 2016 2015 ------(Rupees in '000) ------ASSETS Cash and balances with treasury banks 2,327,107 1,646,846 Balances with other banks 2,862,278 3,213,299 Due from financial institutions 44.2 12,726,452 1,300,000 Investments 13,104,677 17,247,343 Islamic financing and related assets 44.3 7,284,386 7,070,382 Operating fixed assets 155,843 151,283 Due from Head Office 9,365,555 2,146,205 Other assets 143,903 160,736 Total Assets 47,970,201 32,936,094

LIABILITIES Bills payable 238,126 197,090 Deposits and other accounts Current accounts - non remunerative 9,752,775 5,431,588 Current accounts - remunerative 2,520,018 1,870,337 Saving accounts 2,994,848 2,904,770 Term deposits 1,299,848 1,392,031 Deposits from financial institutions - remunerative 28,773,229 19,457,452 Deposits from financial institutions - non remunerative - 30,007 45,340,718 31,086,185 Due to Head Office - - Other liabilities 721,401 452,259 46,300,245 31,735,534 NET ASSETS 1,669,956 1,200,560

REPRESENTED BY Islamic Banking Fund 2,181,000 1,681,000 Accumulated losses (609,289) (532,990) 1,571,711 1,148,010 Surplus on revaluation of assets 98,245 52,550 1,669,956 1,200,560

73 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

The profit and loss account of the Bank's Islamic Banking branches for the year ended December 31 is as follows:

2016 2015 ------(Rupees in '000) ------

Return earned 2,053,224 1,647,780 Return expensed 1,412,390 1,283,399 640,834 364,381

Provision against loans and advances - net 1,469 12,104 Reversal of provision for diminution in value of investments - net (2,182) - (713) 12,104 Net return after provisions 641,547 352,277

Other Income Fee, commission and brokerage income 67,432 22,762 Income from dealing in foreign currencies 12,683 11,336 Gain on sale of securities - net 4,299 16,157 Other income 47,802 3,757 Total other income 132,216 54,012 773,763 406,289 Other Expenses Administrative expenses 849,931 662,509 Other provisions - net 131 37 Total other expenses 850,062 662,546 Loss for the year (76,299) (256,257)

Accumulated losses brought forward (532,990) (276,733) Accumulated losses carried forward (609,289) (532,990)

Remuneration to Shariah Board and Advisor 6,058 3,295

44.1. Charity Fund

Opening balance 2,342 5,102 Addition during the year 1,404 2,240 Payments during the year (3,098) (5,000) Closing balance 648 2,342

44.2. This includes Bai Muajjal agreements entered into with various financial institutions whereby the Bank sold sukuks having carrying value of Rs. 11,073.312 million on deferred payment basis. The average return on these transactions is 5.60%. The balances are due to mature latest by March 2017.

44.3. Islamic financing and related assets 2016 2015 ------(Rupees in '000) ------Financings Murabaha 242,391 259,138 Ijarah 44.4 620,848 714,570 Diminishing Musharaka 6,203,709 6,077,784 7,066,948 7,051,492 Advances Advances and receivables against Ijarah 120,828 7,886 Advances for Diminishing Musharaka 87,892 8,082 Advances for Murabaha 21,998 27,598 230,718 43,566 Profit and other receivables against financings and advances 74,308 61,442 Gross Islamic financing and related assets 7,371,974 7,156,500 Provision against financings and advances (87,588) (86,118) 7,284,386 7,070,382

74 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

44.4 Ijarah

2016 Cost Accumulated Depreciation Net book value At January 1, At December At January 1, At December Additions / Charge / at December 2016 31, 2016 2016 31, 2016 (Deletions) (Deletions) 31, 2016 ------(Rupees in '000) ------

1,191,438 258,436 1,039,790 476,868 205,186 418,942 620,848 (410,084) (263,112)

1,191,438 (151,648) 1,039,790 476,868 (57,926) 418,942 620,848

2015 Cost Accumulated Depreciation Net book value At January 1, At December At January 1, At December Additions / Charge / at December 2015 31, 2015 2015 31, 2015 (Deletions) (Deletions) 31, 2015 ------(Rupees in '000) ------

1,133,042 272,224 1,191,438 393,770 225,424 476,868 714,570 (213,828) (142,326)

1,133,042 58,396 1,191,438 393,770 83,098 476,868 714,570

44.5 Disclosures for profit and loss distribution and pool management

During 2016, UBL Ameen (the Mudarib) maintained following pools which accept deposits on the basis of Mudaraba from depositors (Rabbulmaal). Pool funds are invested in Islamic modes of financing and investments. The profit earned on the pool is therefore susceptible to the same market and credit risks as discussed in note 43 to the unconsolidated financial statements.

Ameen Daily Munafa Account (ADMA) Pool

The ADMA pool consists of deposits for the ADMA product. The net return on the pool is arrived at after deduction of direct costs from the gross return earned on the pool. From the net return, profit is paid to the Mudarib in the ratio of the Mudarib’s equity in the pool to the total pool. The balance represents the distributable profit.

Special Pool(s)

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

Treasury Pool(s)

Treasury Pools are managed on the basis of Musharakah / Mudarabah, wherein UBL Ameen and Financial Institutions share actual return earned by the pool according to pre-defined profit sharing ratio.

General Pool

The General pool consists of all other remunerative deposits. The net return on the pool is arrived at after deduction of direct costs from the gross return earned on the pool. Currently, the entire net return is considered as distributable profit without paying any profit to the Mudarib on its equity.

For all pools, the Mudarib’s share is deducted from the distributable profit to calculate the profit to be allocated to depositors. The allocation of the profit to various deposit categories is determined by the amount invested in that category relative to the total pool, as well as by the weightage assigned to the various deposit categories.

75 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

The Mudarib’s share for the year ended December 31, 2016 is Rs. 505.96 million (28.6% of distributable profit). Of this, an amount of Rs. 136.58 million (27% of Mudarib share) was distributed back to depositors as Hiba. The rate of profit earned on average earning assets was 6.29% per annum and the rate of profit paid on average deposits was 3.96% per annum.

2016 2015 44.6 Deployment of Mudaraba based deposits by class of business

Chemical and pharmaceuticals 660,178 665,712 Agri business 1,683,908 833,043 Textile 1,878,541 3,030,148 Sugar - 70,175 Financial 15,640,744 5,337,150 Food industries 511,211 288,707 Engineering 506,268 320,229 Hotel 3,213 8,632 Plastic 33,347 106,876 Individuals 370,273 194,845 Production and Transmission of energy 9,280,999 4,273,464 Government of Pakistan Securities 5,190,245 13,258,920 Others 181,592 159,832 35,940,519 28,547,733

45. YEMEN OPERATIONS

Throughout the year, political and economic condition in Yemen continued to remain turbulent. International players have been making continuous efforts to resolve the long reeling conflict, however, no resolution has been reached so far. In September 2016, the Central Bank Headquarters was moved from the capital city of Sana’a to the port city of Aden. However core operations are still run by Central Bank - Sana’a as relocation to Aden is still in abeyance.

As a result of prevailing political and economic crisis, liquidity crisis is getting aggrevated both in terms of foreign and local currencies. Banking and financial services have been negatively impacted due to the prevailing crises and corporations, traders and public at large continue to be affected by the ongoing challenging situation on ground. During the crisis, in the initial phase of the war, the Central Bank of Yemen kept the exchange parity unchanged, however in April 2016 the Central Bank devalued Yemeni Riyal and revised the US$ to Riyal parity from YER 214.89 to YER 250.25 (16.45% devaluation). Despite this devaluation the Yemeni Riyal continued to lose its value in the open market and is currently traded at a further lower parity.

Out of the 3 branches in Yemen, UBL is currently operating with 2 branches in Sana’a and Hodeida under close supervision of executives at the Business Continuity Plan (BCP) office, Karachi. The Branch in Aden is closed due to restricted access to the premises in which it is located. Customers of Aden branch are being served from the other two branches.

To support the team in Yemen branches, the Camp Office situated in Karachi, Pakistan is in continuous coordination with the team in Yemen to ensure that they are provided unstinted support and assistance whenever required.

Ever since the crises started, the Bank’s risk is being managed very closely with a clear strategy to re-risk the Yemen Book as far as practicable. As a result, the bank has been able to reduce its clean exposure substantially. Going forward, the strategy is to continuously reduce bank’s credit exposure without executing any new business and continue maintaining investments in local currency sovereign bonds.

The management has taken appropriate measures to support the sustainability of the Bank’s business as may be required in the prevalent circumstances and is of the view that as such there is no issue on going concern on UBL Yemen operations in the foreseeable future.

76 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

46. NON-ADJUSTING EVENT AFTER THE BALANCE SHEET DATE

The Board of Directors in its meeting held on February 17, 2017 has proposed a cash dividend in respect of 2016 of Rs.4 per share (2015: Rs. 4 per share). In addition, the Directors have also announced a bonus issue of nil (2015: nil). These appropriations will be approved in the forthcoming Annual General Meeting. The unconsolidated financial statements for the year ended December 31, 2016 do not include the effect of these appropriations which will be accounted for in the unconsolidated financial statements for the year ending December 31, 2017.

47. DATE OF AUTHORIZATION

These financial statements were authorized for issue on February 17, 2017 by the Board of Directors of the Bank.

48. GENERAL

48.1 Comparatives

Comparative information has been reclassified, rearranged or additionally incorporated in these unconsolidated financial statements for the purposes of better presentation.

SBP has issued circular (BPRD circular letter 5 of 2016) regarding the classification of Islamic financing and related assets. Accordingly, prior year numbers have been reclassified as follows:

- Bai Muajjal of Rs. 5,391.120 million (2014: nil) has been reclassified from Lending to financial institutions to Investments. - Assets given on Ijarah of Rs. 695.380 million (net) (2014: Rs 706.341 million) have been reclassified from Operating fixed assets to Advances. - Islamic receivables carried in Other assets of Rs. 87.510 million (2014: Rs 954.723 million) have been reclassified to Advances. - Provision reversal amounting to Rs. 1.274 million (2014: charge of Rs. 12.364 million) has been reclassified from Other provisions to Provision against loans and advances.

No other major reclassifications were made during the period.

48.2 Figures have been rounded off to the nearest thousand rupees unless otherwise stated.

Wajahat Husain Amin Uddin Zameer Mohammed Choudrey, CBE Sir Mohammed Anwar Pervez, OBE, HPk President & Director Director Chairman Chief Executive Officer

77 Annexure 'A' as referred to in note 9.8 of the Bank's unconsolidated financial statements

1) Particulars of investments held in listed companies and Modaraba

Number of Paid up value shares / Total paid up Investee per share / Cost certificates value certificate held (Rupees) (Rupees in '000) Available for sale securities

Investments in ordinary shares

Agritech Limited 15,975,876 10.00 159,759 559,228 Aisha Steel Mills Limited 868,000 10.00 8,680 9,328 Amreli Steels Limited 275,000 10.00 2,750 18,662 DP World 6,926 2,009.66 13,919 18,837 Engro Corporation Limited 1,500,000 10.00 15,000 468,463 Engro Fertilizers Limited 6,669,000 10.00 66,690 603,631 Fatima Fertilizer Company Limited 22,400,000 10.00 224,000 569,358 Fauji Cement Limited 16,500,000 10.00 165,000 578,292 Fauji Fertilizer Company Limited 17,750,000 10.00 177,500 1,996,503 Fauji Fertilizer Bin Qasim Limited 46,699,000 10.00 466,990 1,894,542 Ghani Gases Limited 15,235,320 10.00 152,353 369,596 Ghani Global Glass Limited 2,996,000 10.00 29,960 50,686 Gharibwal Cement Limited 12,135,500 10.00 121,355 575,078 Hub Power Company Limited 38,189,500 10.00 381,895 1,819,518 Hum Network Limited 6,000,000 10.00 60,000 97,278 Indus Dyeing Manufacturing Company Limited 484,890 10.00 4,849 533,428 Kohat Cement Limited 49,600 10.00 496 13,499 Kohinoor Spinning Mills Limited 6,290,000 10.00 62,900 108,744 Kot Addu Power Company Limited 79,422,000 10.00 794,220 3,688,420 Mughal Steel Limited 140,500 10.00 1,405 11,609 Nishat Chunian Power Limited 18,306,500 10.00 183,065 349,216 Oil & Gas Development Company Limited 1,210,000 10.00 12,100 185,429 Pakistan Telecommunication Company Limited 28,136,997 10.00 281,370 597,349 Pakistan Petroleum Limited 500,000 10.00 5,000 86,929 Pakistan State Oil Limited 300,000 10.00 3,000 123,816 Saif Power Limited 10,324,500 10.00 103,245 342,358 Soneri Bank Limited 22,291,500 10.00 222,915 337,310

16,007,107 Investments in Real Estate Investment Trust Dolmen City REIT 41,690,000 10.00 416,900 458,590

Investments in preference shares

Masood Textile Mills Limited 3,666,668 10.00 36,667 36,667 JSC Alliance Bank 95,720 3,510 335,969 335,969 372,636 Annexure 'A' as referred to in note 9.8 of the Bank's unconsolidated financial statements

2) Particulars of investments held in unlisted companies

Number of Based on Percentage Break-up Paid up shares / audited Name of Chief Investee of holding value per value per Cost certificates accounts as Executive (%) share share held at

Rupees Rupees (Rupees '000)

Shareholding more than 10%

Pakistan Agricultural Storage & 18.3% 5,500 216,939 1,000 5,500 31-Mar-16 Capt (R) Tariq Masud Services Corporation Limited

Cinepax Limited 14.6% 5,037,200 15 10 50,372 30-Jun-16 Hashim Raza

Shareholding upto 10%

World Bridge Connect Inc. 9.9% 1,979,295 - - 77,606 Not available Not available

First Women Bank Limited 2.7% 7,698,441 9 10 21,100 31-Dec-15 Ms. Tahira Raza

National Institutional Facilitation 9.1% 2,266,607 33 10 1,526 30-Jun-16 Haider Wahab Technologies (Pvt.) Limited

National Investment Trust Limited 8.3% 79,200 9,088 100 100 30-Jun-16 Shahid Ghaffar

News-VIS Credit Information 4.7% 32,500 - 10 325 30-Jun-16 Faheem Ahmad Services (Pvt.) Limited

Techlogix International Limited 4.4% 4,455,829 4 - 50,702 31-Dec-15 Mr.Salman Akhtar & Kewan Khawaja (Co Chief Executive)

Kay Textile Mills Limited Not available 377,800 - - 3,778 Not available Not available

SME Bank Limited 1.7% 3,975,003 1 10 26,950 31-Dec-15 Ihsan ul Haq Khan

SWIFT 0.0% 25 387,225 13,825 2,905 31-Dec-15 Gottfried Leibbrandt

MasterCard Incorporated 0.0% 461 547 - - 31-Dec-15 Ajay Banga

The Benefit Company B.S.C 0.4% 216 - 27,938 2,220 31-Dec-13 Abdul Wahid Janahi

243,084 Annexure 'A' as referref to in note 9.8 of the Bank's unconsolifatef financial statements

3) Particulars of bonfs

Terms of Refemption Outstanding Investee Interest/ Rate of Interest/Profit Principal Amount Profit (Rupees in '000) Available for sale securities

Government of Pakistan Sukuk Government of Pakistan Ijarah Sukuk - XV Maturity Bi-annually Cut off yielf of 6M T-Bills minus 200 bps 409,000 Government of Pakistan Ijarah Sukuk - XVI Maturity Bi-annually Cut off yielf of 6M T-Bills minus 50 bps 4,000,000 Islamic Republic of Pakistan 2019 - Sukuk Maturity Bi-annually 6.750% 2,092,052 Islamic Republic of Pakistan 2021 - Sukuk Maturity Bi-annually 5.500% 732,219 7,233,271

Government of Pakistan - Eurobonds Islamic Republic of Pakistan - 2017 - Eurobond At Maturity Bi-annually 6.875% 4,168,154 Islamic Republic of Pakistan - 2019 - Eurobond At Maturity Bi-annually 7.250% 2,013,091 Islamic Republic of Pakistan - 2024 - Eurobond At Maturity Bi-annually 8.250% 7,349,529 Islamic Republic of Pakistan - 2025 - Eurobond At Maturity Bi-annually 8.250% 523,013 14,053,787

Foreign bonds - sovereign Angola 2019 At Maturity Quarterly 7.000% 481,577 Arab Republic of Egypt 2020 At Maturity Bi-annually 5.750% 778,628 Arab Republic of Egypt 2025 At Maturity Bi-annually 5.875% 313,958 Government of Dubai Bond 2020 At Maturity Bi-annually 7.750% 1,606,850 Government of Dubai Bond 2022 At Maturity Bi-annually 6.450% 1,408,165 Kingdom of Bahrain Bond 2020 At Maturity Bi-annually 5.500% 1,099,823 Kingdom of Bahrain Bond 2026 At Maturity Bi-annually 7.000% 834,141 Kingdom of Jordan 2026 At Maturity Bi-annually 6.125% 730,183 Republic of Ghana 2017 At Maturity Bi-annually 8.500% 281,102 Republic of Kenya At Maturity Bi-annually 5.875% 1,586,051 Republic of Nigeria 2023 At Maturity Bi-annually 6.375% 1,036,785 Republic of Sri Lanka Bond 2020 At Maturity Bi-annually 6.250% 1,112,473 Republic of Sri Lanka Bond 2021 At Maturity Bi-annually 6.250% 824,530 Republic of Sri Lanka 2022 At Maturity Bi-annually 5.875% 1,344,232 Republic of Sri Lanka 2026 At Maturity Bi-annually 6.825% 522,175 Republic of Turkey At Maturity Bi-annually 6.250% 870,513 Republic of Vietnam At Maturity Bi-annually 4.800% 313,392 State of Qatar Bond 2030 At Maturity Bi-annually 9.750% 2,676,084 Turkey Sukuks 21 At Maturity Bi-annually 4.251% 41,839 United Republic of Tanzania At Maturity Bi-annually 7.250% 1,388,375 19,250,876

Foreign bonds - others Bank of Ceylon 2017 At Maturity Bi-annually 6.875% 494,945 CBQ Finance 2019 At Maturity Bi-annually 7.500% 479,724 Dubai Electricity and Water Authority 2018 At Maturity Bi-annually 3.000% 3,345,949 Dubai Electricity and Water Authority 2020 At Maturity Quarterly 7.375% 1,521,252 EMAAR 2019 At Maturity Bi-annually 6.400% 905,811 Emirates Airlines 2023 At Maturity Bi-annually 3.875% 424,570 Ezdan Sukuk Co Ltd At Maturity Bi-annually 4.375% 130,743 IPIC GMTN 2022 At Maturity Bi-annually 5.500% 207,805 Jebel Ali Free Zone Authority 2019 At Maturity Bi-annually 7.000% 984,165 MAF GLOBAL 2019 At Maturity Quarterly 5.250% 507,411 PTA Bank 2018 At Maturity Bi-annually 6.375% 300,485 Qatari Diar QSC - 2020 At Maturity Bi-annually 5.000% 197,710 9,500,569 Annexure 'A' as referref to in note 9.8 of the Bank's unconsolifatef financial statements

3) Particulars of bonds (Contd.)

Terms of Redemption Outstanding Investee Interest/ Rate of Interest/Profit Principal Amount Profit (Rupees in '000) Held to maturity securities

Government of Pakistan - Eurobonds

Islamic Republic of Pakistan - 2017 - Eurobond At Maturity Bi-annually 6.875% 4,596,408 Islamic Republic of Pakistan - 2024 - Eurobond At Maturity Bi-annually 8.250% 1,777,654 Islamic Republic of Pakistan - 2025 - Eurobond At Maturity Bi-annually 8.250% 523,014 6,897,076

Government of Pakistan Sukuk At Maturity Bi-annually 5.500% 683,000

Sukuks Al Baraka Bank (Pakistan) Limited Bi-annually Bi-annually 6M KIBOR plus 125bps 178,571 B.R.R Guardian Modaraba Monthly Monthly Deferred interest installment @ 1 month 13,122 KIBOR Fatima Fertilizer Company Limited Bi-annually Bi-annually 6M KIBOR plus 110bps 852,000 K-Electric Limited Bi-annually Quarterly 3 month KIBOR plus 100 bps 2,500,000 Neelum Jehlum Hydropower Company (Pvt) Limited Bi-annually Bi-annually 6M KIBOR plus 113bps 3,575,000 Pakistan International Airlines Limited* Bi-annually Bi-annually 6 month KIBOR plus 175 bps 890,000 Sitara Peroxide Limited Monthly Monthly 1 Months KIBOR plus 100 bps 118,110 Sui Northern Gas Pipelines Limited Bi-annually Bi-annually 6M KIBOR plus 110bps 586,128 WAPDA Bonds - Sukuk II At Maturity Bi-annually 6M KIBOR minus 25bps 8,447 WAPDA Bonds - Sukuk III At Maturity Bi-annually 6M KIBOR plus 100bps 303,572 9,024,950

Foreign bonds - sovereign Arab Republic of Egypt At Maturity Bi-annually 5.875% 313,928 Arab Republic of Egypt 2020 At Maturity Bi-annually 5.750% 779,020 Bahrain 2026 At Maturity Bi-annually 7.000% 834,141 Kingdom of Jordan 2026 At Maturity Bi-annually 6.125% 730,570 Qatar Government Bonds 2030 At Maturity Bi-annually 9.750% 1,015,183 Republic of Kenya At Maturity Bi-annually 5.875% 811,257 Republic of Sri Lanka 2020 At Maturity Bi-annually 6.250% 261,237 Republic of Sri Lanka 2022 At Maturity Bi-annually 5.875% 208,142 Republic of Sri Lanka 2025 At Maturity Bi-annually 6.850% 522,696 Republic of Sri Lanka 2026 At Maturity Bi-annually 6.825% 522,698 Republic of Tanzania At Maturity Bi-annually 7.250% 205,476 Republic Of Turkey At Maturity Bi-annually 6.250% 362,351 Turkey Sukuk 21 At Maturity Bi-annually 4.251% 41,835 6,608,534

Foreign securities - others Ezdan Sukuk Co Ltd At Maturity Bi-annually 4.375% 130,743 JSC Alliance Bank - US $ Discount Bonds At Maturity Quarterly 10.500% 226,866 357,609 JSC Alliance Bank - US $ Recovery Notes At Maturity N/A N/A 322,399 680,008

*These sukuks are classified, however no provision has been maintained as these are secured by Government of Pakistan guarantee.

4) Particulars of Debentures

Terms of Redemption Outstanding Investee Rate of Interest Principal Interest Amount (Rupees in '000)

Private Sector Effef Industries Limited Overdue Overdue 11.00% 1,017 Effef Industries Limited Overdue Overdue 14.00% 379 Khyber Textile Mills Limited Overdue Overdue 14.00% 394 Morgah Valley Limited Overdue Overdue 11.00% 316 Morgah Valley Limited Overdue Overdue 14.00% 160 2,266 Annexure 'A' as referred to in note 9.8 of the Bank's unconsolidated financial statements

5) Particulars of investments in term finance certificates

No. of Paid up value Total Paid up Outstanding Investee Certificates Name of Chief Executive per certificate value Amount held (Rupees) (Rupees in '000) Available for sale securities

Unlisted

Azgard Nine Limited 12,944 5,000 64,720 64,720 Ahmed H. Shaikh Faysal Bank Limited 46,000 5,000 230,000 114,770 Nauman Ansari Pakistan International Airlines Corporation TFC* 1,700 5,000 8,500 8,498 Nasser N S Jaffer 187,988 Listed

Azgard Nine Limited 60,000 5,000 300,000 97,615 Ahmed H. Shaikh NIB Bank Limited TFC 30,000 5,000 150,000 149,850 Atif R. Bokhari Bank Alfalah Limited TFC 24,200 5,000 121,000 120,831 Atif Bajwa 368,296

556,284

Held to Maturity

Unlisted

Pakistan International Airlines Corporation TFC* 408,867 5,000 2,044,335 1,659,690 Nasser N S Jaffer Security Leasing Corporation Limited 40,000 5,000 200,000 30,807 Mohammed Khalid Ali Faysal Bank Limited 24,000 5,000 120,000 59,880 Nauman Ansari Al-Azhar Textile Mills Limited 14 774,670 10,845 5,418 Mirza Aurangzeb Baig Bentonite (Pakistan) Limited 14 268,894 3,765 3,417 Khalid Shakeel Cast-N-Link Products Limited 16 1,064,039 17,025 2,549 Nisar Ahmed Independent Media Corporation 20,000 5,000 100,000 35,000 Mir Shakil Ur Rahman Standard Chartered Bank Pakistan 75,000 5,000 375,000 375,000 Shahzad Dada Azgard Nine Limited 12,297 5,000 61,485 61,115 Ahmed H. Shaikh Askari Commercial Bank Limited 120,000 5,000 600,000 599,520 Syed Majeedullah Husaini WAPDA 300,000 5,000 1,500,000 1,071,430 Zafar Mahmood 3,903,826 Listed

Bank Alfalah Limited 48,600 5,000 243,000 242,660 Atif Bajwa NIB Bank Limited 30,000 5,000 150,000 149,850 Atif R. Bokhari Soneri Bank Limited 83,833 5,000 419,165 418,997 Muhammad Aftab Manzoor 811,507

4,715,333

*These TFCs are classified, however no provision has been maintained as these are secured by Government of Pakistan guarantee.

6) Particulars of participation term certificates

No. of Paid up value Total Paid up Outstanding Investee Certificates Name of Chief Executive per certificate value Amount held (Rupees) (Rupees in '000)

Morgah Valley Limited 16 29,250 468,000 436 Air Marshal (Retd.) A. Rahim Khan Zamrock Fibers Glass Limited 12 32,833 394,000 2,359 Mr. S. Zamir Syed 2,795 Annexure 'A' as referred to in note 9.8 of the Bank's unconsolidated financial statements

7) Quality of investments classified as available for sale (AFS)

Investee Market Value Credit Rating (Rupees in '000) Investments in ordinary shares

Agritech Limited 202,574 Unrated Aisha Steel Mills Limited 13,654 Unrated Amreli Steels Limited 18,312 Unrated DP World 12,685 Baa3 Engro Corporation Limited 474,135 AA Engro Fertilizers Limited 453,359 AA- Fatima Fertilizer Company Limited 826,336 AA- Fauji Cement Limited 743,820 Unrated Fauji Fertilizer Company Limited 1,852,568 Unrated Fauji Fertilizer Bin Qasim Limited 2,391,456 Unrated Ghani Gases Limited 399,622 Unrated Ghani Global Glass Limited 70,226 Unrated Gharibwal Cement Limited 606,290 Unrated Hub Power Company Limited 4,715,639 AA+ Hum Network Limited 89,940 A+ Indus Dyeing Manufacturing Company Limited 349,950 A+ Kohat Cement 14,465 Unrated Kohinoor Spinning Mills Limited 43,087 Unrated Kot Addu Power Company Limited 6,258,454 AA+ Mughal Steel Limited 12,386 Unrated Nishat Chunian Power Limited 1,015,645 A- Oil & Gas Development Company Limited 200,074 Unrated Pakistan Telecommunication Company Limited 471,055 Unrated Pakistan Petroleum Limited 94,090 Unrated Pakistan State Oil Company Limited 130,263 AA Saif Power Limited 367,139 A+ Soneri Bank Limited 393,445 AA-

22,220,669

Investments in Real Estate Investment Trust Dolmen City REIT 453,170 AM2

Investee Cost Credit Rating (Rupees in '000) Investments in preference shares

Masood Textile Mills Limited 36,667 Unrated JSC Alliance Bank 335,969 Caa2 372,636

Investments in unlisted shares

Shareholding more than 10% Pakistan Agricultural Storage & Services Corporation Limited 5,500 Unrated Cinepax Limited 50,372 Unrated

Shareholding upto 10% World Bridge Connect Inc. 77,606 Unrated First Women Bank Limited 21,100 A- National Institutional Facilitation Technologies (Pvt.) Limited 1,526 Unrated SME Bank Limited 26,950 B Kay Textile Mills Limited 3,778 unrated Techlogix International Limited 50,702 unrated SWIFT 2,905 unrated National Investment Trust Limited 100 AM2+ News-VIS Credit Information Services (Pvt.) Limited 325 unrated MasterCard Incorporated - A2 The Benefit Company B.S.C 2,220 unrated 243,084 Annexure 'A' as referred to in note 9.8 of the Bank's unconsolidated financial statements

7) Quality of investments classified as available for sale (AFS)

Particulars Market Value Credit Rating (Rupees in '000) Federal Government Securities Market Treasury Bills 73,041,975 Unrated - Government Securities Pakistan Investment Bonds 295,568,204 Unrated - Government Securities 368,610,179 Government of Pakistan Ijarah Sukuk Government of Pakistan Ijarah Sukuk 7,466,264 Score7

Government of Pakistan - Euro bond Islamic Republic of Pakistan - 2017 - Euro Bond 4,303,624 Score7 Islamic Republic of Pakistan - 2019 - Euro Bond 2,088,931 Score7 Islamic Republic of Pakistan - 2024 - Euro Bond 7,652,550 Score7 Islamic Republic of Pakistan - 2025 - Euro Bond 574,090 Score7 14,619,195 Foreign bonds - sovereign Angola 2019 473,585 Score5,6 Arab Republic of Egypt 2020 774,739 Score6 Arab Republic of Egypt 2025 303,341 Score6 Government of Dubai Bond 2020 1,697,484 Score2 Government of Dubai Bond 2022 1,504,818 Score2 Kingdom of Bahrain Bond 2020 1,113,897 Score4 Kingdom of Bahrain Bond 2026 868,461 Score4 Kingdom of Jordan 2026 706,599 Score5 Republic of Ghana 2017 282,494 Score5,6 Republic of Kenya 1,618,646 Score6 Republic of Nigeria 2023 983,432 Score5,6 Republic of Sri Lanka Bond 2020 1,133,262 Score6 Republic of Sri Lanka Bond 2021 807,452 Score5,6 Republic of Sri Lanka 2022 1,333,871 Score6 Republic of Sri Lanka 2026 479,900 Score6 Republic of Turkey 822,023 Score4 Republic of Vietnam 309,558 Score5,6 State of Qatar Bond 2030 2,726,164 Score3 Turkey Sukuks 21 40,637 Score4 United Republic of Tanzania 1,438,235 Score6 19,418,597 Foreign bonds - others Bank of Ceylon 2017 495,898 B+ CBQ Finance 2019 494,032 A2 Dubai Electricity and Water Authority 2018 3,383,201 BBB+ Dubai Electricity and Water Authority 2020 1,624,155 BBB+ EMAAR 2019 91,005 Baa3 Emirates Airlines 2023 1,312,874 Unrated Ezdan Sukuk Co Ltd 129,926 Ba1 IPIC GMTN 2022 202,600 aa2 Jebel Ali Free Zone Authority 2019 1,016,413 BBB- MAF GLOBAL 2019 524,477 Unrated PTA Bank 2018 304,028 BB Qatari Diar QSC - 2020 201,633 Unrated 9,780,241 Term finance certificates

Listed Azgard Nine Limited 97,615 Defaulted Bank Alfalah Limited TFC 124,007 AA- NIB Bank TFC 151,552 A+ 373,174 Unlisted Azgard Nine Limited 64,720 Defaulted Faysal Bank Limited 115,700 AA Pakistan International Airlines Corporation TFC 8,498 Defaulted 188,918 Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

1 M/S Mehran Filling Station Aziz Ur Rehman 16102-5371249-3 Habib ur Rehman 1,720 - 1,299 1,299 - - - 3,019 - - 1,299 1,299 - - - 1,299 Malakand Road Sari Bahlol Takht Bhai Distt Mardan

2 Al Abid Silk Mills Ltd Naseem A. Sattar 42301-0840043-1 Sheikh Abdul Sattar 550,026 - 53,304 53,304 - - - 603,330 550,026 - 53,304 53,304 - - - 603,330 A-39 Manghopir Road Azim Ahmed Sattar 42301-0912143-9 Naseem A. Sattar S.I.T.E. , Karachi Qamar Mashkoor NA NA Muhammad Sajid Hafeez NA NA Mst. Adia Naseem 42301-0783384-4 Naseem A. Sattar Mrs. Sadaf Nadeem 42301-0878886-8 Nadeem Younus S. M. Jawad Azam 42201-8147445-3 Syed Muhammad Farooq Azam

3 Blue Star Spinning Mills (1) Ch. Ijaz Safdar 31202-5578881-5 Ch. Safdar Hussain 276,407 28,267 36,551 64,818 - - - 341,225 276,407 28,267 36,551 64,818 - - - 341,225 Ltd (2) Ch. Qaiser Munir 31202-9087688-1 Ch. Munir Ahmed 1) H/ No. 10-A, Mohallah (3) Mst. Mahreen Safdar 31202-1632473-6 Ch. Qaiser Munir Rehman Society (4) Ch. Fazal Ahmed NA Ch. Hukam Din Bahawalpur. (5) Ch. Umair Hameed NA Ch. Abdul Hameed 2) 30 Km, Hasilpur Road, (6) Mrs. Jamila Safdar 31202-8253395-0 Ch. Safdar Hussain Lal Sohanra Bawalpur (7) Ch. Faisal Munir 33100-3413361-5 Ch. Munir Ahmed

4 Genertech Pakistan Ltd (1) Jahangir Elahi, 35202-2561094-5 Sheikh Ehsan Elahi 154,429 - 184,702 184,702 - - - 339,131 154,429 - 184,702 184,702 - - - 339,131 49Km, Lahore- Multan (2) Tanvir Elahi NA NA Road, Near Bhai Pheru, (3) Alamgir Elahi NA NA District, Kasur (4) Aamir Jahangir 35202-0676798-7 Jahangir Elahi (5) Ahmed Jahangir 35202-5010274-5 Jahangir Elahi

5 Jannat Industries Mushtaq Ahmed 35200-1435244-5 Muhammad Khan 148,751 - 6,276 6,276 - - - 155,027 148,751 - 6,276 6,276 - - - 155,027 Jannat House, Gojra Road, Akhtar Hussain 33202-1432066-3 Civil Line, Jhang Ashfaq M. Khan 33202-5959524-7 6 Saad Oriental Carpets Mian Ijaz-ur-Rehman 35202-3807763-3 Mian Abdul rehman 188,074 - 105,535 105,535 - - - 293,609 8,074 - 105,535 105,535 - - - 113,609 427-428, Block G-4, Johar Mian Anees-ur-Rehman 35202-9214582-7 Town, Lahore Mian Ateeq-ur-Rehman 35202-6803404-1

7 Nawaz Ghee & Oil Mills Ltd Al- Haj Rab Nawaz Khan 17301-6397377-1 s/o Mr. Nawaz Khan(late) 25,595 11,613 64,128 75,742 - - - 101,336 - 11,208 64,128 75,336 - - - 75,336 19- Islamia Club Building, Naveeda Nawaz 17301-0663158-2 w/o Rab Nawaz Khan Khyber Bazar Peshawar Arbab Muhammad 17301-9669283-5 s/oHaji Rab Nawaz Khan City Nawaz Khan(Late) Plot # 115, L-5, Industrial Mrs. Mahmood Estate, Gadoon Amazai, Begum(Late) Peshawar

8 Bhatti Spinning Mills Pvt Muhammad Iqbal Bhatti 35202-7936106-1 35202- Muhammad Din Bhatti 61,800 - 49,101 49,101 - - - 110,901 7,300 - 49,101 49,101 - - - 56,401 Ltd Maqbool Ahmed Bhatti 7363588-3 35202- Muhammad Din Bhatti 4 Km, Raiwand Road Maqsood Ahmed Bhatti 3032294-1 35202-5703019- Muhammad Din Bhatti Kausar Khalid Mehmood 7 Rehmat Ali 9 Fashionwear Pvt Ltd Waqar Haider Butt 42301-0978189-7 Ghulam Haider Butt 84,336 - 47,589 47,589 - - - 131,925 - - 46,925 46,925 - - - 46,925 F-200,S.I.T.E Karachi Saqib Haider Butt 42301-0705547-5 Waqar Haider Butt Aamir Haider Butt 42301-0978190-7 Waqar Haider Butt Ms. Munawar Jabeen 42301-0887543-2 Waqar Haider Butt 10 Qureshi Rice Mills Haji Sohara Khan 53404-6375116-7 Haji Hazar Khan 19,950 - 33,528 33,528 - - - 53,479 5,195 - 33,528 33,528 - - - 38,724 Jhat Pat Road, Usta Muhammad Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

11 Kashir Textile Mils Tld Mian Zahid Aslam 33100-0613745-7 Mian M. Aslam 91,257 - 23,670 23,670 - - - 114,927 - - 23,670 23,670 - - - 23,670 Office No. 1, P-208, Tikka Mian Abid Aslam 33100-6916435-9 Mian M. Aslam Gali No. 1, Yarn Market, Mian Hamid Aslam 33100-0641681-7 Mian M. Aslam Faisalabad Imran Zahid 33100-5146568-5 Mian Zahid Aslam Farhan Abid 33100-0164574-7 Mian Abid Aslam Mst. Zaib-un-Nisa Hamid 33100-0615377-4 Mian Hamid Aslam Usman Zahid 33100-0708998-9 Mian Zahid Aslam 12 Quality Export Mr. Atta-ul-Haq Siddiqui 42201-0374874-9 Muhammad Sadiq 31,756 - 19,647 19,647 - - - 51,403 - - 19,635 19,635 - - - 19,635 Inrternational 4/90 Sector 21, Korangi Industrial Area Karachi 13 Chistia Sugar Mills Ltd Muhammad Masood Tahir 38403-2266601-9 Rab Nawaz 110,258 - 19,599 19,599 - - - 129,857 - - 19,599 19,599 - - - 19,599 187-A Scotch Corner, Faisal Jawad Bhatti 35202-2619201-3 Shakeel Mahmood Bhatti Upper Mall, Lahore Rehmat Ali 35202-2916919-1 Muhammad Tufail Waseem Qaiser Bhatti 35202-5501486-9 Ashiq Muhammad Bhatti Rahat Shakeel Bhatti 35202-2463651-6 Shakeel Mahmood Bhatti

14 Dost Sons Cotton Mills Pvt Jamal Iftikhar 42301-0932772-3 Iftikhar Ahmed 13,000 - 19,279 19,279 - - - 32,279 - - 19,279 19,279 - - - 19,279 Ltd Zahid Iftikhar 42301-0932771-9 Iftikhar Ahmed 101, Chappal Plaza, Hasrat Mohani Road Karachi 15 Plastic Pack Pvt Ltd Dr. Ishtiaq Ahmed 42201-8219476-9 Lal Hussain 3,400 704 12,526 13,230 - - - 16,630 3,400 704 12,526 13,230 - - - 16,630 3 & 4, Society Apartment, Arshad Javaid Khawaja 246-49-330486 Muhammad Sanaullah 1St Floor, P.E.C.H.S. Rehmatullah Ghouri 517-27-266558 Khawaja Block-2, Karachi Muhammad Shabbir Dr. Asadullah Khan Ghouri Chaudhry 16 Chevrolet Johar Town Mian Saeed-ur-Rehman 35202-1039847-7 Mian Abdul rehman 28,500 - 16,359 16,359 - - - 44,859 - - 16,359 16,359 - - - 16,359 Motors 410, G-Iv, Ma Johar Town Lahore 17 Sartaj Polysacks Noman Kabir 35202-3963932-7 Mian Abdul Kabir 102,191 - 8,180 8,180 - - - 110,371 4,999 - 8,180 8,180 - - - 13,179 132/3, Industrial Area, Kot Lakhpat Lahore 18 New Al-Hilal Corporation Sh. Shaukat Ali 35202-1215674-3 Sh. Muhammad Siddique 23,625 - 2,234 2,234 - - - 25,859 6,428 - 2,234 2,234 - - - 8,662 5.5 Km, Raiwind Road, Tokhar Niaz Baig, Lahore

19 Travel Tips International Abdul Rehman 35202-7003352-5 35202- Fazal-ur-Rehman 977 - 5,628 5,628 - - - 6,605 977 - 5,628 5,628 - - - 6,605 714-Kamran Block, Allama Tahir Rehman 5571794-1 35202-5800586- Fazal-ur-Rehman Iqbal Town Lahore Mrs. Shaheen Rehman 8 276-52-442960 Abdul Rehman Mrs Musarat Zia-ul-Islam Zia-ul-Islam 20 Texto Products Pvt Ltd Muhammad Irshad M.Tahheed 2,713 1,586 1,921 3,508 - - - 6,221 2,713 1,586 1,921 3,508 - - - 6,221 16-Noor Estate, Shahrah-E- Mrs. Ishrat Jahan Faisal Karachi Muhammad Shamshad Mrs. Alamgirah Mrs. Jehan Tab 21 Arsel Enterprises Rao Naveed Akhter 35202-2915061-5 Habib Khan 42,000 - 5,476 5,476 - - - 47,476 - - 5,476 5,476 - - - 5,476 10 Commercial Zone, Rao Mubarik Ali 35202-2925163-9 Habib Khan Dubai Chowk Ait Lahore 22 Amira Textile (Pvt) Ltd Muhammad Akram Khan 35201-2815241-9 Abdul Raheem 39,502 - 5,216 5,216 - - - 44,718 - - 5,215 5,215 - - - 5,215 Off Manga Road, Riwind, Shahid Akram Khan 35201-0669574-5 M. Akram Khan Lahore Faisal Akram Khan 35201-0666582-6 M. Akram Khan Amira Akram Khan 35201-3256067-4 M. Akram Khan

23 M. Iqbal Construction Rao Muhammad Shakeel 42000-0561720-9 Rao Muhammad Iqbal 7,500 - 4,349 4,349 - - - 11,849 - - 4,149 4,149 - - - 4,149 Company (Pvt) Ltd. Iqbal Rao Muhammad Iqbal C-28 Sector 11-B, North Rao Muhammad Khaleel Karachi Iqbal Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

24 Computer Touch Rana Nadeem Hussain 35201-9555048-9 Rana Ghullam Hussain 9,000 - 3,890 3,890 - - - 12,890 - - 3,890 3,890 - - - 3,890 Suit # 16, Third Floor, Rana Mubeen Hussain 35201-9544693-9 Rana Ghullam Hussain Hafeez Center Gulberg Lahore 25 Usman Medicine Co. Ishtiaq Ahmed Bhatti 36302-0477517-5 Allah Datta Bhatti 4,107 - 3,589 3,589 - - - 7,697 - - 3,447 3,447 - - - 3,447 Police Line Road Multan 26 Mughal International Mirza Shafqat Javed 17301-1412381-1 Mirza Abdul Wadadood 3,500 - 3,123 3,123 - - - 6,623 - - 3,123 3,123 - - - 3,123 House No.137, Gali No.13, Gulbahar No.2, Peshawar City, Peshawar

27 Faridia Tradres Mr. Shahid Ahmad 36502-7652185-3 Muhammad Boota 6,250 - 3,248 3,248 - - - 9,498 - - 3,098 3,098 - - - 3,098 Ghallan Mandi Main Bazar Sahiwal 28 Abdul Mannan Abdul Mannan 16202-4547324-5 Shah Randaan 917 - 3,262 3,262 - - - 4,179 - - 3,079 3,079 - - - 3,079 Moh Taous Khel Maneri Payan P.O Tehsil & District, Swabi 29 Irfan Steel Muhammad Irfan 35202-73434901-1 Muhammad Mushtaq 30,000 - 3,043 3,043 - - - 33,043 - - 3,043 3,043 - - - 3,043 H # 14, St # 67, Elahi Park, Misri Shah, Lahore 30 Teejays Exclusive (Pvt) Tanveer Jamshed Jamshed Alam 675 2,246 - 2,246 - - - 2,921 575 2,246 - 2,246 - - - 2,821 Ltd. 37-T Block-6, Pechs, Karachi 31 Ramzan & Co. 2,596 ------2,596 2,596 ------2,596 32 Azeem Rice Mills Fazal Ahmed 35404-2028827-5 M. Ibrahim 34,000 - 2,593 2,593 - - - 36,593 - - 2,593 2,593 - - - 2,593 Faisalabad Road, Near Khadim Hussain 35404-1561484-7 M. Ibrahim Bye Pass Chowk, Qamar Naeem 35404-2416930-5 Fazal Ahmed Sheikhupura Sakhi Muhammad 35404-8705849-7 Khadim Hussain Anjum Nadeem 35404-0845118-9 Fazal Ahmed 33 Wahid Engineering Abdul Waheed 33102-1768635-9 Abdul Wahid 8,000 - 2,569 2,569 - - - 10,569 - - 2,569 2,569 - - - 2,569 Oden Street, Samandari Road, Faisalabad 34 Kraftsman Associates Ali Ameer Shaikh 35201-8879857-9 Mumtaz Manzoor 1,009 1,009 393 1,402 - - - 2,411 1,009 1,009 393 1,402 - - - 2,411 51-D, Commercial Area "A" Ali Tanveer Shaikh Defence Market, Karachi Ali Jawaid Shaikh Mrs. Qurrat Rizvi Mrs. Nazia Shaikh Mrs. Surraya Mumtaz 35 Al Rasheed Petrolium Sardar Noman Sher 32103-5199299-7 3,000 - 2,664 2,664 - - - 5,664 - - 2,351 2,351 - - - 2,351 Khewat No.99 Mouza Qaisrani 35201-3398036-1 Dhomra Shumali Tehsil Sardar Numair Khan Tounsa Distt.D.G.Khan Qaisrani 36 Al Rasheed Cotton Sardar Salman Sher 35201-9945895-7 7,187 - 2,242 2,242 - - - 9,429 - - 2,242 2,242 - - - 2,242 Khewat No.99 Mouza Qaisrani 35201-8872539-0 Dhomra Shumali Tehsil Mst.Asia Salman 36302-3635521-9 Tounsa Distt.D.G.Khan Sardar Imran Sher Khan 32103-5199299-7 Sardar Noman Sher 37 Nizam Impex Essa Abdullah 42201-1186759-5 Abdullah 1,970 239 - 239 - - - 2,209 1,970 239 - 239 - - - 2,209 63, Pma Building, Nicol Muhammad Aslam 42301-5995980-5 Essa Abdullah Road, Karachi Muhammad Amin 501-51-044246 A. Rahman 313, Chapal Plaza, 3Rd Muhammad Saleem 42201-9038990-3 A. Rahman Floor, Hasrat Mohani Muhammad Iqbal 42201-9529086-7 A. Rahman Road, Karachi M. Arif A. Rahman 38 Shafi Uddin Shafiq Shafi Uddin Shafique 35202-4633941-5 Salahuddin Ghazi 5,660 - 1,995 1,995 - - - 7,655 - - 1,925 1,925 - - - 1,925 183-C, Gulshan Ravi Lahore 39 Shakeel Rice Dealer Shabbir Ahmed 34101-2476426-3 Bashir Ahmed 5,000 - 1,998 1,998 - - - 6,998 - - 1,898 1,898 - - - 1,898 Ghalla Mandi, Qila Didar Amjad Shakeel 34101-2424650-1 Habib Ahmed Singh, Gujranwala. Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

40 Shan Agro Chemicals Muhammad Ajaz 36603-2213761-1 Muhammad Mukhtar 740 - 2,354 2,354 - - - 3,094 - - 1,894 1,894 - - - 1,894 57-B Grain Market Vehari Mst.Farhat Naseem 36603-5376210-4 Muhammad Ajaz Abdul Rauf 36603-4543941-1 Abdul Latif Mirza Ijaz Baig 36603-1372140-1 Mirza Abdul Hayee

41 Nauman Sadiq News Mahmood Sadiq 35201-3651617-9 Ghulam Sadiq 4,500 - 1,896 1,896 - - - 6,396 - - 1,796 1,796 - - - 1,796 Publication Pvt Ltd Uzma Sadiq 35201-5809407-2 Mahmood Sadiq 15-L, Gulberg Iii, Lahore 42 Abdul Salam Cold Storage Mr. Abdul Salam 35202-2881087-1 Haji Muhammad Yaqoob 24,500 - 1,679 1,679 - - - 26,179 - - 1,679 1,679 - - - 1,679 Mouza Mehmood Booti Bund Road, Lahore

43 Syed Ahsan Ali Syed Ahsan Ali 42101-9531222-9 Syed Ale Ali 3,033 - 1,766 1,766 - - - 4,799 - - 1,599 1,599 - - - 1,599 Flat # C-2, Rabia Gardens Block-17, Gulsitan-E- Jauhar Karachi

44 Tariq & Conmpany Abdul Rab Rind 53404-9323490-3 Ghulam Sarwar Khan Rind 5,008 - 1,537 1,537 - - - 6,545 - - 1,537 1,537 - - - 1,537 Aliabad Road, Usta Muhammad, District Jafferabad, Balochistan 45 Muhammad Mushtaq Muhammad Mushtaq 35202-9123076-9 Muhammad Ibrahim 15,000 - 1,520 1,520 - - - 16,520 - - 1,520 1,520 - - - 1,520 H # 14, St # 67, Elahi Park, Misri Shah, Lahore 46 Zia Sports (Pvt) Ltd. Sh. Arif Mahmood 34603-2266624-7 Sh. Muhammad Fazal 23,834 - 1,460 1,460 - - - 25,294 - - 1,460 1,460 - - - 1,460 Karimpura Opposite Dar Ul Sh. Khurram Khalid 34603-3692092-1 Sh. Khalid Mahmood Shafqat, Maharaja Road, Sh. Usman Arif 34603-2278366-1 Sh. Arif Mahmood Sialkot

47 Cheema Iron Store Muhammad Naseem 34104-1947672-9 Muhammad Sharif 4,000 - 1,397 1,397 - - - 5,397 - - 1,397 1,397 - - - 1,397 Kalaske, Tehsil Wazirabad, District Gujranwala 48 Rizwan Commission Shop Muhammad Ishaq 35202-6068994-7 Muhammad Ismaeel 2,700 - 1,592 1,592 - - - 4,292 - - 1,361 1,361 - - - 1,361 Ghalla Mandi Jattan, Mrs. Tabasum Ishqa 35202-1574924-4 Muhammad Ishaq Faizabad Mrs. Saleem Akhtar 35202-2746259-6 Muhammad Hussain Kinan Arshad 35402-0908312-7 Muhammad Arshad Muhammad Asghar 35501-0114139-9 Muhammad Siddique 49 Mohiuddin Khan Mohiuddin Khan 1,330 5 - 5 - - - 1,335 1,330 5 - 5 - - - 1,335 50 Pakistan Tarding Zawar Hussain 35402-9279453-5 475 - 1,950 1,950 - - - 2,425 - - 1,225 1,225 - - - 1,225 Ali Madad Rice Mill, Mandi Alamdar Hussain 35402-9375308-5 Faizabad, Thesil & District Nankana 51 Abdul Khalique Abdul Khalique 763 410 - 410 - - - 1,173 763 410 - 410 - - - 1,173 52 Masood Ur Rehman Khan Masood Ur Rehman Khan 820 347 - 347 - - - 1,166 820 347 - 347 - - - 1,166 D-38, Block-8, Gulshan-E- Iqbal, Karachi

53 Wajid Salahuddin Wajid Salahuddine 42101-9531222-9 Muhammad salahudine 2,031 - 1,230 1,230 - - - 3,260 - - 1,160 1,160 - - - 1,160 Flat # 201, 2Nd Floor, Al- Rehman Arcade, Sector 11- C/2, North Karachi

54 Okara Gas Appliances Co. Rao Muhammad Iqbal 35302-2879491-1 Rao Khurshid Ali 3,000 - 1,254 1,254 - - - 4,254 - - 1,024 1,024 - - - 1,024 House No. 4, Mehboob Town G.T Road Okara

55 Muzafar Hussain Hydri Muzafar Hussain Hydri 992 ------992 992 ------992 Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

56 Muhammad Yousuf M. Yousuf Umer Bhai 899 88 - 88 - - - 987 899 88 - 88 - - - 987 Memon 1) Plot # F/36/5, Block-8, Clifton, Karachi 2)63-B, Block-A, Adamjee Nagar, Khatiawar Co- Operative Housing Society, Karachi.

57 Rehman Trading Muhammad Kamran 322-77-963813 Muhammad Ali Siddiqui 11,499 - 985 985 - - - 12,484 - - 984 984 - - - 984 2155 A/A, Ward No. X, Siddiqui 322-80-858291 Muhammad Ali Siddiqui Humayun Road, Muhammad Rizwan Near Chungi No.9 Multan. Siddiqui

58 Textech Khalid Zaheer 798 158 - 158 - - - 956 798 158 - 158 - - - 956 17/3, Luxmi Building, M.A. Jinnah Road, Karachi.

59 Malik M Akram Malik M Akram 925 ------925 925 ------925 60 Abid Hussain Abid Hussain 887 ------887 887 ------887 61 Abdul Razzak Abdul Razzak 885 ------885 885 ------885 62 Waseem Brothers Muhammad Waseem 36402-0774755-1 SHEIKH SHOUKAT ALI 2,701 - 885 885 - - - 3,586 - - 885 885 - - - 885 House No. 889/Biii, Street No. 1 Mohallah Islam Colony Pakpattan 63 Kasim Corp . Haji Abdul Aziz 42201-0405761-7 Kasim 515 347 - 347 - - - 862 515 347 - 347 - - - 862 154/A Gali No. 12 Shershah Kyc. 1/6/A Block 6, Pechs, Kyc.

64 Mughal Plywood & Flush Muhammad Aslam 36502-9792069-5 Khair Din 1,067 - 858 858 - - - 1,925 - - 857 857 - - - 857 Door Industries Muhammad Akram 36502-8998039-5 Khair Din 13-Km Arifwala Road Muhammad Ikram 36502-1803094-3 Khair Din Sahiwal 65 Muhammad Iqbal Chishti Muhammad Iqbal Chishti 846 ------846 846 ------846 66 Liaquat Ali Khan Liaquat Ali Khan 805 29 - 29 - - - 834 805 29 - 29 - - - 834 67 Amin & Co. Muhammad Amin 34104-8870501-7 Nasar Ullah Cheema 5,000 - 824 824 - - - 5,824 - - 824 824 - - - 824 Ghalla Mandi, Kalaske, Tehsil Wazirabad, District Gujranwala 68 Shahab Rice Mills Irfan Ali Noor 35202-7320984-9 Noor Muhammad 13,200 - 801 801 - - - 14,001 - - 801 801 - - - 801 34-Km, Multan Road, Lahore 69 Uni Co Tading Co Akbar Ali 42201-0782490-1 Ghulam Hussain 665 134 - 134 - - - 800 665 134 - 134 - - - 800 77/C, Dh, 1St Floor, Main Abdul Rashid Memon 501-50-257478 Korangi Road, Karachi

70 Muhammad Ali Siddique Muhammad Ali Siddique 654 138 - 138 - - - 792 654 138 - 138 - - - 792 71 Gss Trading Company Muhammad Gulzar 35202-3234146-3 Sheikh Abdul Ghani 7,000 - 791 791 - - - 7,791 - - 791 791 - - - 791 25-Hide Market, Sheikh Sheraz Ahmad 35202-6051316-3 Muhammad Gulzar Sultanpura Road, Lahore. Sajjad Ahmad 35202-0608407-3 Muhammad Gulzar H # 86-87 St # 13 Jinnah Park Sultan Pura, Lahore

72 Shams Corp. Shahnaz Begum Masood Ahmed 764 ------764 764 ------764 D-7, 3Rd Floor,Blessing Apartment, 1-B-2, Nazimabad, Karachi 73 Farooq Ahmed Farooq Ahmed 35202-0608841-7 Abdul Qayum 1,830 - 1,030 1,030 - - - 2,860 - - 760 760 - - - 760 84-B/1, Ghalib Market, Gulberg-Iii, Lahore Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

74 Saleem Akhtar Saleem Akhtar 759 ------759 759 ------759 75 Assr Traders Azad Pervaiz Butt 35202-2532425-5 Muhammad Abdullah Butt 2,961 - 791 791 - - - 3,752 - - 752 752 - - - 752 House # 421 Block-J Johar Town, Lahore. 76 Rasheed Ahmed Rasheed Ahmed 723 4 - 4 - - - 727 723 4 - 4 - - - 727 77 M.Sabir Govt Contractor Muhammad Sabir 36502-1351625-9 405 - 713 713 - - - 1,118 - - 713 713 - - - 713 House # 363, B-4 Ansar Road Sahiwal

78 Tridul Corporation Abdullah A. Badat. 710 ------710 710 ------710 4Th Floor, Karachi House, M. Aslam Khan I.I. Chundrigar Road, Baqi Mohammadally. Karachi Iqbal Akram 79 Salman & Company Yasmeen Sadruddin 684 ------684 684 ------684 Room No. 30/31, Rafai Mrkaz Jodia Bazar Karachi

80 Shafqat Ali Fayyaz Shafqat Ali Fayyaz 600 80 - 80 - - - 680 600 80 - 80 - - - 680 81 Al Fazal Roller Flour Mills Muhammad Azeem Shah 544 136 - 136 - - - 680 544 136 - 136 - - - 680

82 Malik Ghulam Jilani Malik Ghulam Jilani 673 ------673 673 ------673 83 Habib Ashraf Habib Ashraf 617 33 - 33 - - - 650 617 33 - 33 - - - 650 84 Saima Corp. Irfan 516-90-374214 Muhammad Arif 647 ------647 647 ------647 316 Sabir Manzil, 3Rd Floor, Near Garden Cinema, Marston Road, Karachi 85 Niaz Muhammad Shah Niaz Muhammad Shah 622 ------622 622 ------622 86 Irfan Iftikhar Malik Irfan Iftikhar Malik 35202-7968964-5 Iftikhar Hussain Malik 9,999 - 611 611 - - - 10,610 - - 610 610 - - - 610 Godown # 9-A, Rahim Road, Misri Shah, Lahore

87 Feroz Ali Khoja Feroz Ali Khoja 603 ------603 603 ------603 88 Master Quran Company Muhammad Saeed 35202-9477438-5 Maula Baksh 6,000 - 603 603 - - - 6,603 - - 603 603 - - - 603 38 Urdu Bazaar Lahore 89 Baghdad Corporation Zahoor Ahmad 31303-2435849-3 Nazir Ahmad 944 - 897 897 - - - 1,841 - - 601 601 - - - 601 Bahawalpur 90 Sandhal Cotton 600 ------600 600 ------600 91 Nayyar Perveen Nayyar Perveen 575 ------575 575 ------575 92 K S G Mohiuddin & Sons Ghulam 570 ------570 570 ------570 652, Bombay Bazar, Karachi

93 Habib Ashraf Habib Ashraf 565 ------565 565 ------565 94 Pak Extbition Corp 563 ------563 563 ------563 95 Hanif A Sattar Hanif A Sattar 557 ------557 557 ------557 96 M. Ashraf A Habib M. Ashraf A Habib 556 ------556 556 ------556 97 Ifra Seema Fatima Ifra Seema Fatima 554 ------554 554 ------554 98 Khairul Bashar Khairul Bashar 540 ------540 540 ------540 99 Sandad Shoes 503 35 - 35 - - - 538 503 35 - 35 - - - 538 100 Beco Engineering Muhammad Dawood Asad 34101-2709841-1 Asad Ullah 904 - 641 641 - - - 1,544 - - 537 537 - - - 537 G.T Road, Gujranwala 101 Sheikh Enterprises Asif A. Shaikh 533 ------533 533 ------533 Mubarak Manzil, Jamshed Road, Karachi 102 Paramount Toys 532 ------532 532 ------532 103 Azam Sports Muhammad Azam 35201-2815241-9 Muhammad Hussain 1,500 - 531 531 - - - 2,031 - - 531 531 - - - 531 6-A Venus Housing Scheme Saroba Gardens,17-Km Ferozepur Road Lahore 104 Khurshid Ali Khurshid Ali 523 ------523 523 ------523 Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

105 Mohammad Haroon Mohammad Haroon 511 ------511 511 ------511 31, Nawab Manzil, Adamjee Budda Bhai Road, Tahtae Compound, Karachi 106 Cannon Associate Engg Co 504 ------504 504 ------504

107 Mughal Agro Services 500 ------500 500 ------500 108 Haji Javed Ahmed Haji Javed Ahmed 36203-6815365-7 Haji Atta Muhammad 364 106 - 106 - - - 470 364 141 - 141 - - - 505 Mouza Mujaldi Wala Tehsil & District Lodhran 109 Ghulam Murtaza Ghulam Murtaza 36402-6329471-7 Hakim Ghulam Muhammad 399 87 - 87 - - - 486 399 124 - 124 - - - 524 Adda Noor Pur Tehsil Pakpattan 110 Muhammad Akram Chishti Muhammad Akram Chishti 35301-7299098-9 Aish Muhammad 351 141 - 141 - - - 493 351 175 - 175 - - - 526 Mouza Chishti Qutab Din Po Basirpur Tehsil Depalpur

111 Muhammad Munir Khan Muhammad Munir Khan 31102-1917435-3 Muhammad Nawaz Khan 323 185 - 185 - - - 508 323 216 - 216 - - - 539 Basti Nooran Mouza Mahru Baloch Po Dula Bahadar Tehsil Chishtian, Distt Bahawalnagr

112 Kabeer Ahmad Kabeer Ahmad 35302-5109146-1 Abdul Sattar 350 167 - 167 - - - 517 350 200 - 200 - - - 550 Chak 6/1 R Renalakhurd 113 Nazar Ahmad Nazar Ahmad 36301-0970914-7 Haji Khuda Bux 305 220 - 220 - - - 525 305 249 - 249 - - - 554 Ghaloo Nagar Sabra Tehsil Jalalpur Pirwala District Multan 114 Bashir Ahmad S/O Bashir Ahmad S/O 35301-1974423-7 Fazal Muhammad 356 184 - 184 - - - 541 356 218 - 218 - - - 575 Mouza Chishti Qutab Din Basirpur 115 Muhammad Rafique Muhammad Rafique 33201-1654991-3 Ahmad Ali 350 198 - 198 - - - 548 350 231 - 231 - - - 581 Chak No 131 Jb, Faisalabad 116 Khalid Nawaz Khalid Nawaz 34104-2304927-5 Muhammad Malik 350 199 - 199 - - - 549 350 232 - 232 - - - 582 Vill & P.O Dad Wali Sharif Teh: Wazirabad Dist: Gujranwala 117 Muhammad Yousaf So Muhammad Yousaf 35403-1170980-5 Sardar Khan 400 378 - 378 - - - 778 400 189 - 189 - - - 589 Sardar Khan Chak# 285 Rb, Rangar Nangal, P.O Same, Tehsil Safderabad, District Nankana Sahib 118 Abdul Karim Abdul Karim 44103-0310976-1 Haji Wahid Bux 450 99 - 99 - - - 549 450 142 - 142 - - - 592 Village Haji Wahid Bux Keeio, P.O & Taluka Mirpur Khas 119 Mrs. Amlan W/O Akber Mrs. Amlan 44107-5340899-4 Akbar 343 226 - 226 - - - 569 343 259 - 259 - - - 601 Akbar House Samejo Ward No 310 B Umerkot 120 Muhammad Alam S O Muhammad Alam 35404-9200049-1 Sanaullah 345 517 - 517 - - - 862 345 258 - 258 - - - 603 Sanaullah Choorrhi Daal, P.O Manawala, Tehsil & District Sheikhupura 121 Tahir Muqaddas Tahir Muqaddas 35101-1991620-9 Muhammad Ashiq 445 130 - 130 - - - 575 445 172 - 172 - - - 617 Diyo Sial Tehsil Chunian Distt Kasure Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

122 Abdul Rauf Khan Abdul Rauf Khan 36602-4309464-1 Haji Muhammad Anwar 400 190 - 190 - - - 590 400 228 - 228 - - - 628 Chak 110 Wb Tehsil Mailsi Khan

123 Zuharan Bibi W/O Abdul Zuharan Bibi 31303-9366201-4 Abdul Khaliq 400 190 - 190 - - - 590 400 228 - 228 - - - 628 Khaliq Chak # 6/G Tehsil Chishtian District Bahawalnagar 124 Asghar Ali Asghar Ali 31104-1755744-1 Ahmad Din 416 191 - 191 - - - 607 416 229 - 229 - - - 645 Chak # 122/6-R Haroonabad District Bahawalnagar 125 Pervaiz Pervaiz 35301-6657214-3 Abdul Khaliq 500 108 - 108 - - - 608 500 155 - 155 - - - 655 Bonga Sahby Ka Mandi Ahmad Abad Tehsil Depalpur 126 Abdul Hamid Abdul Hamid 32202-2538689-5 Awan 350 279 - 279 - - - 629 350 310 - 310 - - - 660 Ward No. 3 Fateh Pur, Tehsil Karor, Distt. Layah

127 Zubaida Khanam Zubaida Khanam 34104-3257386-6 Sanaullah 400 228 - 228 - - - 628 400 266 - 266 - - - 666 Lala Zar Colony Tehsil Wazirabad Distt. Gujranwala 128 Muhammad Akram Naro Muhammad Akram Naro 34301-2286220-9 Atta Muhammad 396 264 - 264 - - - 660 396 301 - 301 - - - 698 Chak 549/Eb Po 477/Eb Tehsil Vehari 129 Muhammad Yar S/O Ellahi Muhammad Yar 36203-1795051-9 Elahi Bux 410 250 - 250 - - - 660 410 291 - 291 - - - 701 Mohallah Kalarwal P/O Chamb Kulyar Tehsil And District Lodhran

130 Fazal Ellahi Fazal Ellahi 36402-5154821-3 Muhammad Saddique 399 265 - 265 - - - 664 399 303 - 303 - - - 702 Chak Alwardi Khan Po Bonga Hayat Tehsil Pakpattan 131 Shahzad Hanif Shahzad Hanif 33103-3206741-7 Muhammad Hanif 400 227 - 227 - - - 627 400 303 - 303 - - - 703 Chak No:6 J.B. Tehsil& Distt Faisalabad 132 Muhammad Akram Muhammad Akram 45402-9998557-1 Rasool Bux 450 241 - 241 - - - 691 450 284 - 284 - - - 734 Ward # 4, Jamali Road Daur, P>O & Taluka Daur Dist Nawab Shah 133 Khalid Hussain S/O Khalid Hussain 36602-3103465-3 Rehmat Khan 474 225 - 225 - - - 699 474 270 - 270 - - - 744 Rehmat Khan Chak 126/Wb Tehsil Mailsi

134 Muhammad Arshad S/O Muhammad Arshad 36203-3233074-3 Jamshed Ali 450 256 - 256 - - - 706 450 298 - 298 - - - 748 Jamshed Al Ward # 11 Tehsil And District Lodhran 135 Mian Khan Mian Khan 33104-2073513-3 Ismail Khan 450 256 - 256 - - - 706 450 299 - 299 - - - 749 Chak No 435Tehsil Jarawaladistt. Faisalabad

136 Ahmad Yar Ahmad Yar 36502-1054859-7 Agra 450 256 - 256 - - - 706 450 299 - 299 - - - 749 Mouza Chena Karmali Sahiwal 137 Mohmmad Anwar S/O Mohmmad Anwar 35302-8043477-3 Barkat Ali 631 62 - 62 - - - 694 631 122 - 122 - - - 753 Barkat Ali House No 74 Street 2 People Colony Okara Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

138 Faraz Ahmad Khan Faraz Ahmad Khan 35404-5510593-1 Munir Ahmad Khan 469 600 - 600 - - - 1,069 469 300 - 300 - - - 769 Khan House,Qila Shabdav Singh P.O Manawala Tehsil And District Sheikhupura 139 Murshid Ali S/O Jamshed Murshid Ali 36203-1297182-3 Jamshed Ali 470 264 - 264 - - - 734 470 308 - 308 - - - 778 Ali Ward # 11 Tehsil And District Lodhran 140 Muhammad Akbar Muhammad Akbar 35401-2707612-1 Muhammad Saleem 475 617 - 617 - - - 1,092 475 308 - 308 - - - 783 Village Kot Pindidas P.O Same Tehsil Ferozewala District Sheikhupura

141 Zulfiqar Ali Allah Din Zulfiqar Ali Allah Din 35101-5055443-9 Muhammad Amin 500 238 - 238 - - - 738 500 285 - 285 - - - 785 Jhoke Balochan Deo Sial Tehsil Chunain Distt Kasur

142 Zubaidan Perveen W/O Zubaidan Perveen 36602-8960601-0 Ghulam Mustafa 475 271 - 271 - - - 746 475 316 - 316 - - - 791 Ghulam Mouza Mitroo Tehsil Mailsi

143 Muhammed Madni Muhammed Madni 31201-3020761-5 Nazar Muhammad 495 291 - 291 - - - 786 495 338 - 338 - - - 833 Basti Abdul Aziz Mouza Chah Narang P/O Chah Loharan Tehsil Ahmad Pur East District Bahawalpur

144 Ch.Abdul Majeed Ch.Abdul Majeed 31201-5034735-7 Ch. Barkat Ali 430 380 - 380 - - - 810 430 421 - 421 - - - 851 House # 71 Mohallah Shadman Colony Ahmad Pur East District Bahwalpur

145 Muhammad Anwar Chohan Muhammad Anwar Chohan 36502-3895013-1 Bagh Din 608 231 - 231 - - - 839 608 288 - 288 - - - 896 Chak 97/9L Tehsil Sahiwal

146 Tasaddiq Hussain Alias Tasaddiq Hussain Alias 36502-0887551-3 Ch Mukhtar Ahmad 920 ------920 907 ------907 House No 509/J Fareed Town Sahiwal 147 Suleman Ahmad P/A Suleman Ahmad 32103-6688243-9 Manzoor Ahmed 450 427 - 427 - - - 877 450 467 - 467 - - - 917 Ashfaq Ahmad Dha. House No.81-C, Phase 01,Lahore Cantt 148 Talib Hussain & Nasir Talib Hussain Nasir 36602-9900663-1 Mulazam Hussain 725 145 - 145 - - - 870 725 213 - 213 - - - 938 Hussain Hussain Mouza Zohr Kot Po Karmpur Tehsil Mailsi 149 Ghuman Dairy Farm Akbar Ali 34104-2311278-3 599 285 - 285 - - - 884 599 342 - 342 - - - 941 Village Rana Tehsil Wazirabad Distt. Gujranwala 150 Atta Hussain Khan S/O Atta Hussain Khan 36602-7129028-5 Kareem Khan 670 307 - 307 - - - 977 670 370 - 370 - - - 1,040 Karim Mouza Mahni Po Dakota Tehsil Mailsi 151 Muhammad Zafar Muhammad Zafar 31203-5171999-3 Muhammad Latif 700 376 - 376 - - - 1,076 700 443 - 443 - - - 1,143 Mohallah Abbubakar Hasil Pur Old Bahwalpur 152 Mushtaq Ahmad Mushtaq Ahmad 36201-7107362-9 Khan Muhammad 700 399 - 399 - - - 1,099 700 465 - 465 - - - 1,165 Chak # 360/Wb P/O Same Lodhran Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

153 Ali Imran Ali Imran 36401-4394786-7 Ahmad Yar 700 464 - 464 - - - 1,164 700 530 - 530 - - - 1,230 Chak Hama Rath Tehsil Arifwala 154 Falak Sher Falak Sher 33104-4483070-1 Rehmatullah 900 513 - 513 - - - 1,413 900 598 - 598 - - - 1,498 Chak No. 238/Gb Tehsil Jaranwala Distt Faisalabad

155 Muhammad Muhammad Din 31101-7292425-1 Imam Din 1,000 570 - 570 - - - 1,570 1,000 665 - 665 - - - 1,665 Din&Muhammad Ramzan Muhammad Ramzan Roda Singh P/O Khas Haroonabad District Bahwal Nagar

156 Shahid Bashir Shahid Bashir 35202-2702691-7 Bashir Ahmed 2,122 938 - 938 - - - 3,059 2,122 1,091 - 1,091 - - - 3,213 82-B,Tipu Block,New Garden Town,Lahore 157 Ghulam Fareed Khan Ghulam Fareed Khan 36302-0403377-3 Muhammad Sharif Khan 600 1,331 - 1,331 - - - 1,931 - 1,001 - 1,001 - - - 1,001 Khakwani Khakwani Shareef Manzil Kutcheri Road Multan 158 Muhammad Nasir Khan Muhammad Nasir Khan 31102-6085793-5 Abdul Jabbar Khan 3,229 1,653 - 1,653 - - - 4,882 - 1,653 - 1,653 - - - 1,653 Bakshan Khan P/O Same Tehsil Chishtian 159 Muhammad Ramzan Muhammad Ramzan Sheikh M. Yousef 90,432 56,793 - 56,793 - - - 147,225 - 6,726 - 6,726 - - - 6,726 Sheikh Sheikh 42-S Dha Lahore Cantt. Pakistan 160 Amir Hossein Tabarra Amir Hossein Tabarra Hamid Tabarra 124,043 5,776 - 5,776 - - - 129,819 3,962 ------3,962 H. No 85, Pasdaran Ave. 2Nd Gulistan, Tehran, Iran

161 Masoud Abdar Esfahani Masoud Abdar Esfahani Rasoul Esfahani 46,853 48,361 - 48,361 - - - 95,213 46,883 49,647 - 49,647 - - - 96,530 H.No 74, Exfani Ave. Morahari Street.Isfahan, Iran

162 Payam Rahim Doustdar Payam Rahim Doustdar Rahim Doustdar 54,952 28,105 - 28,105 - - - 83,057 14,535 32,177 - 32,177 - - - 46,712 H.No 2287 Vila, Sanbazan Street, Shahrak Zhandermer, Tehran Iran.

163 Hassan Majeed Hassan Majeed Abdul Majeed 58,257 32,885 - 32,885 - - - 91,142 11,201 38,247 - 38,247 - - - 49,448 12 B, Korangi Road, Phase 1, Dha , Karachi , Pakistan

164 Saidazahan Sameullakh Saidazahan Sameullakh 57,181 13,964 - 13,964 - - - 71,145 57,171 13,965 - 13,965 - - - 71,136 H. No 115, Building-Ss, Street Flatwa, Odesa, Ukarine.

165 Heshmat Malekzadeh Heshmat Malekzadeh Abdol Hussain 281,256 132,803 - 132,803 - - - 414,058 281,267 163,562 - 163,562 - - - 444,828 H. No 12, Izad Alley Safa Street, Qhiytariye, Tehran, Iran 166 Ary Traders Haji Abdul Razzak 156,465 657,210 - 657,210 - - - 813,675 116,565 714,353 - 714,353 - - - 830,918 P.O. Box 1123, Dubai, Haji Muhammad Iqbal United Arab Emirates. 167 M/S Hanover Int’L Trading Abdul Rehman Bin - 13,595 - 13,595 - - - 13,595 - 15,761 - 15,761 - - - 15,761 Llc Mohammad P.O. Box 24309, Sharjah Ashraf Langalath United Arab Emirates. Razzak Langalath Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

168 Muhammad Saleem Butt Muhammad Saleem Butt 964 ------964 935 ------935 P.O.Box: 19204 Al Ain, U.A.E 169 Yolanda Comia Ginete Yolanda Comia Ginete 671 ------671 671 ------671 P.O. Box 15258 Al Ain U.A.E 170 Javed Iqbal Ghulam Javed Iqbal Ghulam 646 ------646 646 ------646 P.O. Box:65647 Al Ain,U.A.E 171 Harish Harish 547 ------547 570 ------570 P.O. Box:42973 Dubai, U.A.E 172 Muhammad Naeem Muhammad Naeem 1,036 ------1,036 1,193 ------1,193 P.O. Box:26013 Sharjah, U.A.E 173 Syed Mazher Ul Haque Syed Mazher Ul Haque 527 ------527 527 ------527 Qaiser Qaiser P.O. Box: 35170 Dubai, U.A.E 174 Johnas Mondroy Baja Johnas Mondroy Baja 692 ------692 698 ------698 P.O.Box 261619, Dubai, U.A.E. 175 Nasim Ul Ghani Abdul Nasim Ul Ghani Abdul 1,628 ------1,628 1,460 ------1,460 Ghani Ghani P.O.Box 54438, Dubai, U.A.E. 176 Ibrahim A Karim H Ibrahim A Karim 2,556 ------2,556 2,374 ------2,374 Almaimani P.O.Box 157, Dubai, U.A.E.

177 Sherief Mohammod Sherief Mohammod 863 ------863 800 ------800 Basheer Basheer P.O.Box 31558, Dubai, U.A.E. 178 Muhammad Farooq Muhammad Farooq 650 ------650 678 ------678 P.O.Box 7880, Dubai, U.A.E. 179 Kulthoum Hussain Kulthoum Hussain 2,268 ------2,268 2,319 ------2,319 P.O.Box 3306, Dubai, U.A.E. 180 Saeed Rashed R. A. H. Al Saeed Rashed R. A. H. Al 673 ------673 673 ------673 Zaabi Zaabi P.O.Box 246, Abu Dhabi, U.A.E. 181 Abd El Mohsen Mohamed Abd El Mohsen Mohamed 925 ------925 1,006 ------1,006 El Sayed El Sayed P.O.Box 253, Abu Dhabi, U.A.E. 182 Mariam Cenciode Guzman Mariam Cenciode Guzman 2,249 ------2,249 2,027 ------2,027 P.O.Box 68469, Dubai, U.A.E.

183 Ahmed Salim Saif Al Ahmed Salim Saif Al Fazari 4,370 46 - 46 - - - 4,416 4,268 46 - 46 - - - 4,314 Fazari P.O.Box No 47 Doha Qatar

184 Sardar Khan Dost Sardar Khan Dost 3,239 1,055 - 1,055 - - - 4,293 3,202 1,199 - 1,199 - - - 4,401 Mohammad Mohammad P.O.Box No 9758 Doha Qatar Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

185 Khalid Soliman M.H.Al Khalid Soliman M.H.Al 6,240 3,537 - 3,537 - - - 9,777 6,239 3,889 - 3,889 - - - 10,128 Taweel Taweel P.O.Box No 6169 Doha Qatar 186 Maumood Sultan Maumood Sultan 621 ------621 621 ------621 Flat 22, Bldg 844, Road 1128, Manama 311 187 Zulqarnain Haider Zulqarnain Haider 36302-1464202-7 1,360 3 - 3 - - - 1,363 95 542 - 542 - 27 27 664 Near Chugi No 14 Mumtazabad Mohallah Basti Ram Kali Multan Multan Multan 188 Khyal Muhammad Khyal Muhammad 17102-9042244-7 Muhammad ------614 - 614 - 188 188 802 H No 8 Ziam Qila Kochyeno Kalay Tangi Charsadda 189 Muhammad Asif Muhammad Asif 35201-6326933-1 Abdul Latif 471 9 - 9 - - - 480 - 2,308 - 2,308 - 5 5 2,313 H No 11-I-B Allowdin Road Cantt Lahore 190 Waseem Zaheer Waseem Zaheer 42301-9065451-9 Syed Mohammad Zaheer 1,213 9 - 9 - - - 1,222 - 687 - 687 - 1 1 688 E-607, Chapal Resort, Block-1, Clifton, Near Boat Basin Police Station

191 Arif Mehmood Gujjar Arif Mehmood Gujjar 38405-5114206-7 Ali Muhammad 1,837 15 - 15 - - - 1,851 - 2,141 - 2,141 - 10 10 2,151 Khaiber Sweets And Bakers P-575 College Road Namat Colony 1 Faisalabad 192 Fayyaz Ahmad Qadri Fayyaz Ahmad Qadri 35202-7587301-9 Suraj Din 2,702 22 - 22 - - - 2,723 - 1,535 - 1,535 - 6 6 1,541 H No 12-A Muhallah Racha Rasheed Rd Lahore

193 Mohammad Kamal Uddin Mohammad Kamal Uddin 42000-3057360-9 Abdul Haleem 2,345 21 - 21 - - - 2,366 - 1,453 - 1,453 - 0 0 1,453 M K Corporation Room No 617 6Th Floor Zohra Square Bldg Ma Jinnah Rd Karachi

194 Musa Constant Sher Gill 42201-9859370-5 523 6 - 6 - - - 529 - 512 - 512 - 8 8 520 Flat#3 Floor#2 Plot No 28- C 14 Commercial Street Phase 2 Extension Dha Karachi 195 Tariq Mehmood Tariq Mehmood 35202-8919171-3 Aziz Ud Din 7,667 52 - 52 - - - 7,719 - 9,789 - 9,789 - 1 1 9,790 H No 181 Atta Turk Block New Garden Town Lahore

196 Shahzad Rasheed Shahzad Rasheed 42201-4346326-9 Abdul Rasheed (Late) 1,101 11 - 11 - - - 1,111 - 774 - 774 - 0 0 774 Flat # A-30, Zubaida Classics Block 13-D-2 Gulshan-E-Iqbal 197 Nayyar Ahmed Malik Nayyar Ahmed Malik 35202-2026918-7 Naseem Ahmed Malik 24,711 215 - 215 - - - 24,926 - 24,415 - 24,415 - 12 12 24,427 H No 53-U , Phase Ii Dha Cantt Lahore 198 Mohammad Tariq Mohammad Tariq 35202-2527308-5 Mohammad Ali 500 4 - 4 - - - 504 - 756 - 756 - 0 0 756 H No 11 St No 31 Safi Road New Islamia Park Chuberji Lahore Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

199 Muhammad Ashraf Muhammad Ashraf 35202-0591483-1 Chaudhary Barkat Ali 2,210 18 - 18 - - - 2,227 - 3,401 - 3,401 - 11 11 3,412 Chaudhary Chaudhary Punjab Institute Of Paramedica 13 Mamdot Block Mustafa Town Lahore 200 Haroon Ahmad Haroon Ahmad 33100-8305200-3 Neyaz Ahmad 3,307 5 - 5 - - - 3,312 - 7,197 - 7,197 - 0 0 7,197 H No 12/25 Main Road Green View Colony Faisalabad 201 Tehsin Ali Shareef Tehsin Ali Shareef 42301-6484131-1 Hussain Ali Shareef 5,646 49 - 49 - - - 5,696 - 5,359 - 5,359 - 1 1 5,361 Free Hold Assoct Pvt Ltd Flat No A-1 Park Way Appt Tennis Club Road Blk 9 Clifton Karachi

202 Abdul Qadir Mughal Abdul Qadir Mughal 35200-1511087-3 M Abbas Mughal 1,548 1,094 - 1,094 - - - 2,641 - 1,161 - 1,161 - 1 1 1,162 Heco Sales 9Km Multan Road Awan Town Lahore

203 Khalid Ali Mansoori Khalid Ali Mansoori 42301-9762347-5 Mahfooz Ali Mansoori 3,914 3,473 - 3,473 - - - 7,387 - 3,565 - 3,565 - 9 9 3,574 Flat No D-11 Florida Homes Phase V DHA 204 Raja Muhammad Dulpazir Raja Muhammad 42401-2889397-3 Raja Muhammad Arbab 2,802 3,190 - 3,190 - - - 5,992 - 3,246 - 3,246 - 13 13 3,259 Kyani House No A-24 Sector Z-V Gulshan-E-Mehmar Karachi 205 Amjad Hussain Amjad Hussain 33100-3576503-5 Muhammad Hussain 2,690 ------2,690 - 2,530 - 2,530 - 12 12 2,542 Bilal Traders Shop No 92 Gulistan Market No Railway Road Behind Nigena Cin Faisalabad 206 Adnan Iqbal Khan Adnan Iqbal Khan 42301-6309719-7 Iqbal Ahmed Khan 4,198 ------4,198 - 539 - 539 - 1 1 540 H No B-16/13 Alpine Homes Rojhan Behind Bar B-Q Block 5 Clifton 207 Shahid Rais Ahmed Shahid Rais Ahmed 35202-6224490-7 Rais Ahmed 3,786 ------3,786 - 4,197 - 4,197 - 1 1 4,198 Kashif Brothers Toys Centre Sh No 4-5 Pak Market Shah Alam Market Lahore 208 Abid Hussain Abid Hussain 42501-1036790-9 Muhammad Shafi (Late) 1,150 12 - 12 - - - 1,163 570 51 - 51 - 1 1 622 H No 99 Row # 4 C Area Korangi Crossing Near Crossing 209 Muhammad Tariq Muhammad Tariq 35202-5897014-7 Muhammad Rafiq 3,034 16 - 16 - - - 3,050 - 6,595 - 6,595 - 9 9 6,604 H No 3-A,St No 71-A Wassan Pura Lahore 210 Nazar Miran Ali Nazar Miran Ali 35202-8217609-1 Muhammad Rafi 563 4 - 4 - - - 567 - 1,415 - 1,415 - 1 1 1,416 H No 92/A Allama Iqbal Road Ghari Shahu Lahore

211 Jawaid Iqbal Jawaid Iqbal 42301-0829968-7 Chudary Ilm Din Gojr 1,719 2,050 - 2,050 - - - 3,768 - 2,159 - 2,159 - 137 137 2,296 A J International Traders, Office No. 9, Kulsoom Bai Building, Jamat Khana Street, Saddar Karachi

212 Muhammad Saeed Muhammad Saeed 33100-7915636-9 Ch. Muhammad Din 1,178 949 - 949 - - - 2,127 - 1,007 - 1,007 - 87 87 1,094 P-352-D Block St 2 G M Abad Faisalabad. Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

213 Tahir Mushtaq Tahir Mushtaq 33100-4620798-5 Mushtaq 2,380 2,734 - 2,734 - - - 5,114 - 2,669 - 2,669 - 78 78 2,746 H No 148 Hamza Street No 1 Waqas Chowk Khayaban Colony No 1 214 Kamran Parekh Kamran Parekh 42301-7099809-3 Mehmood Parekh 467 490 - 490 - - - 957 140 495 - 495 - 49 49 684 Credit Risk Management Dep 2Nd Fl Dubai Islamic Bank Hassan Chambers D C 7 Bl 7 Kehkashan Clifton Karachi

215 Osman Masud Osman Masud 61101-1835957-5 M Masood Pervaz 501 661 - 661 - - - 1,162 101 673 - 673 - 6 6 779 Avenir Technologies Pvt Ltd Off No 4-B Ground Floor Evacuee Trust Complex F-5/1 Islamabad

216 Muhammad Yaqoob Paul Muhammad Yaqoob Paul 37301-2325091-1 Muhammad Ismail Paul 375 373 - 373 - - - 748 100 385 - 385 - 37 37 522 Salah Selencer And Gas Welding G T S Chowk . Edhi Centre,Jhelum

217 Muhammad Irfan Muhammad Irfan 35202-0368453-7 Ch M Yousaf 176 450 - 450 - - - 626 116 453 - 453 - 44 44 613 Myb 31-B Gulberg V Zafar Ali Road Lahore Lahore

218 Saeed Ahmed Naseem Saeed Ahmed Naseem 33100-1933832-5 Ch Sikandar Ali 147 467 - 467 - - - 614 92 470 - 470 - 4 4 567 H No P-36 Sheikhupura Road Malik Pur Nr Haji Book Depo Faisalabad 219 Mirza Asif Baig Mirza Asif Baig 42101-9484754-1 Mirza Mahmood Baig 458 661 - 661 - - - 1,120 137 678 - 678 - 58 58 873 A-503 Az Comforts Plot Sc Ii Block H North Nazimabad ,Karachi 220 Muhammad Irfan Muhammad Irfan 42401-1458305-7 Khalil Rehman 310 439 - 439 - - - 749 93 453 - 453 - 4 4 550 H No C/79-80 1St Floor Wilayatabad No 2 Manghopir Road Karachi 221 Manzoor Hussain Manzoor Hussain 36502-1857954-1 Chaudhary Fazal 245 406 - 406 - - - 652 80 414 - 414 - 38 38 533 Descent Furniture Ara Muhammad Manid Kot Khadam Ali Shah Al Wali Kanda ,Sahiwal 222 Syed Muhammad Nasir Syed Muhammad Nasir 42101-1739755-1 Syed Farzand Raza ------143 694 - 694 - 62 62 898 Raza Rizvi Raza Rizvi H No D-2 Block 13-D-1 Gulshan E Iqbal Karachi 223 Tariq Mehmood Tariq Mehmood 3520-22771479-9 Rahmat Ali 317 521 - 521 - - - 838 117 538 - 538 - 52 52 706 T M Photo Exprees 16 Urdu Nagar Mor Samanabad Gulshan Ravi Road Lahore 224 Sibghat Ullah Khan Sibghat Ullah Khan 35202-9999867-5 Sami Ullah Khan 379 664 - 664 - - - 1,043 143 684 - 684 - 62 62 890 H No 66/A Rasool Park Ichra Lahore 225 Muhammad Irfan Muhammad Irfan 42301-4429671-1 Mohd Akber 281 412 - 412 - - - 692 84 428 - 428 - 38 38 549 Trade Link International Suit No 27 2Nd Floor Al Rehman Centre 15 Keamari Karachi Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

226 Amjad Ali Shaida Amjad Ali Shaida 35202-2733379-5 Abdul Rasheed 499 456 - 456 - - - 956 139 476 - 476 - 5 5 621 305 Pak Block Allama Iqbal Town Lahore 227 Muhammad Shafiq Mughal Muhammad Shafiq Mughal 34101-2691676-1 Muhammad Siddique 394 508 - 508 - - - 902 109 538 - 538 - 5 5 652 Malik Yaseen Silk Centre, Near Ramzan Paan Shop, Main Bazar Shaheen Abad, Gujranwala

228 Mohiuddin Zaki Mohiuddin Zak 42201-8616265-7 Qazi Zaheer Uddin 425 539 - 539 - - - 964 127 574 - 574 - 53 53 754 A 17 Block 3 Gulshan-E- Iqbal ,Karachi 229 Muhammad Mumtaz Uddin Muhammad Mumtaz Uddin 42201-6203797-9 Syed Ahmed Noor 501 630 - 630 - - - 1,131 115 678 - 678 - 62 62 856 Ahmed Ahmed Flat No.A-29, Lucky Centre, Block-4, Gulshan- E-Iqbal, Opp. Pizza Hutt, Karachi... 230 Faisal Mehmood Faisal Mehmood 35201-1284561-9 Muhammad Nisar Ahmed 352 466 - 466 - - - 818 - 518 - 518 - 5 5 522 H No 4 St No 28 Main Bazar 2 Ghazi Abad Cantt ,Lahore 231 Abdul Hameed Abdul Hameed 41303-7918913-5 Tahir Mohammad 475 556 - 556 - - - 1,030 135 617 - 617 - 6 6 758 M/S Abdul Hameed Cosmatic Corn Shop 4 Kohe-E-Noor Shoping Mal Mezz Floor Resham Gali ,Hyderabad 232 Muhammad Naeem Muhammad Naeem 35202-3276165-5 Muhammad Bashir 393 419 - 419 - - - 812 113 463 - 463 - 5 5 581 H No 5-A St No 3 Mazang Road Mazang Lahore

233 Amir Hanif Amir Hanif 61101-1951198-1 Mohammad Hanif 293 417 - 417 - - - 710 80 462 - 462 - 45 45 586 Telconet Communication H No. 4 Street 56 F-8/4 Islamabad

234 Muhammad Waseem Muhammad Waseem 42201-4012381-7 M Ounus Qureshi 500 443 - 443 - - - 943 143 509 - 509 - 52 52 705 Am Enterprise Office 14 Poonawala View Building Borhi Road Opposite Custom House. Khi

235 Syed Aman Ul Haque Syed Aman Ul Haque 42201-0275905-5 Syed Anis Ul Haq 413 495 - 495 - - - 908 122 549 - 549 - 6 6 677 Micron B/710 Saima Trade Tower I.I Chundrigar Road Near Jungp ,Karachi

236 Muhammad Amjad Muhammad Amjad 42301-0493080-9 Abdul Sattar 479 498 - 498 - - - 977 139 578 - 578 - 59 59 776 Young Student Centre Shop No 9 Gul Centre Capital Gali Saddar Karachi

237 Saeed Iqbal Saeed Iqbal 42201-0725912-9 Iqbal 469 271 - 271 - - - 739 140 357 - 357 - 39 39 536 H No 19 St No 10 Sector E Manzoor Colony

238 Abdul Jabbar Abdul Jabbar 33100-1394416-1 Muhammad Ishaq 493 - 104 104 - - - 597 493 - 104 104 - - - 597 Rocket Corporation Shadman Road Near Allied Bank Faisalabad Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

239 Fazal Hussain Malik Fazal Hussain Malik 61101-7419377-1 Malik Allah Bakhsh 740 - 328 328 - - - 1,068 740 - 328 328 - - - 1,068 H # 339 St # 73 G-11/2 Islamabad 240 Khuram Ibrahim Khuram Ibrahim 37405-6665694-9 Umer Bakhash Satti 456 - 109 109 - - - 565 456 - 109 109 - - - 565 H No D-85 Sector No 1 Khayaban E Sirsyed,Rawalpindi 241 Hassan Ashraf Hameed Hassan Ashraf Hameed 61101-1946765-9 Ashraf Hameed 713 - 203 203 - - - 916 713 - 203 203 - - - 916 Appt # 006 Park Towers Main Building F-10/3 Islamabad

242 Ashfaq Ul Haq Ashfaq Ul Haq 35202-2367122-7 Abdul Haq 409 - 104 104 - - - 513 409 - 104 104 - - - 513 H No 66-B-1 Johar Town Lahore Lahore 243 Kashif Shehzad Kashif Shehzad 38403-2265218-3 Muhammad Farooq 466 - 143 143 - - - 609 466 - 143 143 - - - 609 H No 452,St No 9 Cheema Colony Sargodha

244 Muhammad Khalil Muhammad Khalil 42501-9861623-7 Hakim Din 478 - 132 132 - - - 610 478 - 132 132 - - - 610 H No R-318 Decent House Block 7 Gulistan-E-Jauhar Karachi 245 Shaukat Hussain Shaukat Hussain 31202-0252708-5 Manzar Ahmed 448 - 132 132 - - - 580 448 - 132 132 - - - 580 H No 530-Ii-2-A New Model Colony Bund Road Mirza Ice Factory Bahawalpur

246 Mian Liaqat Ali Sheikh Mian Liaqat Ali Sheikh 36302-4195237-9 Sheikh Muhammad Younas 394 - 121 121 - - - 515 394 - 121 121 - - - 515 H No. 483, Block E-1 Wapda Town,Upper Portion Lahore 247 Ghulam Mohammad Ghulam Mohammad 37406-3615610-5 Mohammad Suleman 534 - 159 159 - - - 693 534 - 159 159 - - - 693 Chach House Saabri Kalimullah Karyana Munirabad Opp Aysha Masjid Wah Cantt 248 Khayyam Shahzad Khayyam Shahzad 54400-1903191-1 Muhammad Saleem 506 - 158 158 - - - 664 506 - 158 158 - - - 664 H No P-80,St No 06/10 Abdullah Jalal Centre Munshi Mohalla Faisalabad

249 Hafeez Ullah Saeed Hafeez Ullah Saeed 33100-0721436-1 Muhammad Saeed 486 - 142 142 - - - 628 486 - 142 142 - - - 628 H No P-93,Main Bazar Green View Colony,Rajey Wala Faisalabad

250 Aisha Tahoor Aisha Tahoor 42401-5489084-6 Syed Tahoor Hussain 424 - 102 102 - - - 526 424 - 102 102 - - - 526 Fl No F-42 2Nd Floor Phase Ii Defence View Karachi 251 Mohammad Shahrukh Mohammad Shahrukh 42000-8129775-9 Naeem Ul Haq 446 - 121 121 - - - 567 446 - 121 121 - - - 567 Siddiqui Siddiqui Fl No B-49 Anar Kali Complex Bab-E-Arif Nagan Chowrangi 252 Javaid Iqbal Qamar Javaid Iqbal Qamar 36302-8512607-7 Rao Abdul Sattar Khan 456 - 146 146 - - - 602 456 - 146 146 - - - 602 562-A Al-Quresh Housing Phase 1 Street # 8-A Shershah Road Multan- 061-6538199 Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

253 Mohammad Imran Mohammad Imran 45301-1367728-9 Mohammad Akram 477 - 150 150 - - - 627 477 - 150 150 - - - 627 H No 21 Block C Unit 6 Latifabad Ak Minar Masjid Hyderabad 254 Lal Bux Lal Bux 41306-1322732-9 Allah Rakhiyo 424 - 123 123 - - - 546 424 - 123 123 - - - 546 House No 2 Domra Goth Qasimabad Near Ali Raza Catress Hyderabad

255 Sabir Ali Khan Norani Sabir Ali Khan Norani 35202-0228331-3 Ghazanfar Ali Khan Norani 488 - 149 149 - - - 637 488 - 149 149 - - - 637 H No 12 Block 3,Sector C- 1,Green Town,Township Lahore 256 Manzoor Hussain Manzoor Hussain 42501-0176010-9 Hazoor Bux Bhatti 478 - 130 130 - - - 608 478 - 130 130 - - - 608 F-403 Chapal Garden Abul Hassan Ispahani Road Gulshan-E-Iqbal 257 Muhammad Riaz Shahza Muhammad Riaz Shahza 37302-1184015-9 Fazal Ellahi 512 - 142 142 - - - 654 512 - 142 142 - - - 654 H No Ts-53 Hit Majid Shaheed Colony,Taxila

258 Naveed Ahmad Naveed Ahmad 37405-0627379-3 Habeeb Ahmad 523 - 164 164 - - - 687 523 - 164 164 - - - 687 H No Bv-66 Haider Ali Street #5 Muslim Town Near Al-Mubarik Cng Rawalpindi 259 Muhammad Shahzad Muhammad Shahzad 35202-1619390-9 Zain Ul Abideen 505 - 180 180 - - - 685 505 - 180 180 - - - 685 Ahmed Ahmed H No 53 St No 15 Muhammad Nagar Bilal Park Lahore 260 Muhammad Abaidullah Muhammad Abaidullah 36401-0687543-9 Muhammad Hasan 390 - 153 153 - - - 543 390 - 153 153 - - - 543 H No 194/4 Block N Pakpattan Road Arifwala

261 Naheed Tabassum Naheed Tabassum 42201-2684598-6 Bahir Ahmed Siddique 471 - 142 142 - - - 613 471 - 142 142 - - - 613 A-9 Centre Point 1St Floor Block 21 F B Area 262 Tahir Hussain Rajput Tahir Hussain Rajput 45402-5144878-5 Mubin Ahmed 491 - 159 159 - - - 651 491 - 159 159 - - - 651 K-358 Ward # 03 Manuabad Nawabshah 263 Tariq Mehmood Tariq Mehmood 33100-4696758-1 Abdul Aziz 458 - 91 91 - - - 549 458 - 91 91 - - - 549 Quarter No 1, Bandadi Tabimarkaz Millat Road Chak No 116-Jb Faisalabad

264 Aijaz Ahmed Aijaz Ahmed 43105-1513494-5 Rafeeq Ud Din 639 - 255 255 - - - 894 639 - 255 255 - - - 894 H No D-39 Empire Centre Block 18 Gulistan-E-Johar Karachi

265 Ashi Khan Ashi Khan 42401-6959298-4 Abdul Rasheed 745 - 290 290 - - - 1,034 745 - 290 290 - - - 1,034 Fl No 12-C 3Rd Floor Appt No 5 Lane 8 Bukhari Comm Phase 6 Dha Super Fine Dry Cleaner Karachi

266 Syed Moazzum Ali Shah Syed Moazzum Ali Shah 31303-8553532-3 Sed Ghazanfar Ali Shah 403 - 173 173 - - - 576 403 - 173 173 - - - 576 Basti Noor E Wali Muhalla Sheikhan Rahim Yar Khan Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

267 Mohammad Kashif Mohammad Kashif 42201-0464304-1 Muhammad Umer 534 - 152 152 - - - 685 534 - 152 152 - - - 685 Flat No 2 2Nd Floor 347C Blk 2 Pechs Karachi

268 Ghulam Mustafa Ghulam Mustafa 41204-8642923-3 Muhammad Bachal 564 - 253 253 - - - 817 564 - 253 253 - - - 817 Mallah House 716-E Kamesry Bagh Darya Road Opp Zarie Bank Kotri

269 Muhammad Zahid Muhammad Zahid 42201-8740211-9 Mohammad Akbar 373 - 150 150 - - - 523 373 - 150 150 - - - 523 H No L-100 Rafi Garden Malir City 270 Shaher Bano Shaher Bano 45402-1020524-6 Imdad Ali 399 - 176 176 - - - 575 399 - 176 176 - - - 575 H No A-35/200 Paro Abdullah Town Block A Hyderabad 271 Muhammad Rizwan Muhammad Rizwan 42401-1847512-7 M Tariq 570 - 229 229 - - - 800 570 - 229 229 - - - 800 Flat No D-509 Rufi Lake Drive Block 18 Gulistan-E- Johar Perfume Chowk Karachi 272 Asjad Rasool Asjad Rasool 37301-4480456-9 Gulam Rasool 522 - 111 111 - - - 632 522 - 111 111 - - - 632 Asjad House Mohallah Harl Po Khas Chakakka Gt Road Jhelum Dina 273 Bashir Ahmed Bashir Ahmed 31303-7742304-9 Muhammad Suleman 589 - 251 251 - - - 840 589 - 251 251 - - - 840 Basti Noor Pur Chak Abbas Rahim Yar Khan 274 Iram Shahzad Iram Shahzad 36302-0924118-9 Zahoor Ahmad Tabash 622 - 279 279 - - - 901 622 - 279 279 - - - 901 Khawaja Street New Shadab Colony Multan 275 Haji Muhammad Yasin Haji Muhammad Yasin 36402-7453294-7 Roshan Din 533 - 222 222 - - - 755 533 - 222 222 - - - 755 Yasin House St No 1 Muhalla Shahid Nagar Pakpattan 276 Muhammad Ijaz Ahmed Muhammad Ijaz Ahmed 35202-3338653-9 Miray Din 428 - 188 188 - - - 616 428 - 188 188 - - - 616 H No 2 St No 10 Javaid Colony Changi Amer Sadhu Lahore 277 Naveed Ahmed Naveed Ahmed 31303-9167445-3 Gulam Rasool 951 - 444 444 - - - 1,395 951 - 444 444 - - - 1,395 H No 141-C Block W Scheme No 2 Gulshan E Iqbal Rahim Yar Khan 278 Himat Shah Himat Shah 21203-5720702-3 Janat Shah 594 - 233 233 - - - 827 594 - 233 233 - - - 827 Room No 12 Mall Plaza Ring Road Peshawar 279 Muhammad Saleem Muhammad Saleem 38403-2249176-3 Muhammad Shabbir 415 - 196 196 - - - 611 415 - 196 196 - - - 611 House No 3-S-70 St Mohalla 5 Block 10 Po Sargodha City Sargodha 280 Nasir Ali Nasir Ali 35202-2892854-9 Naseer Ahmed 412 - 169 169 - - - 581 412 - 169 169 - - - 581 H No 5 St No 109 Johar Street Sandha Road Islampura Lahore 281 Naveed Akhter Naveed Akhter 34101-4340956-9 Abdul Rasheed 484 - 113 113 - - - 597 484 - 113 113 - - - 597 H No 3 Basharat Town More Eminabad Gujranwala

282 Naveed Iqbal Naveed Iqbal 17301-2237585-9 Muhammad Akram 921 - 412 412 - - - 1,333 921 - 412 412 - - - 1,333 H No 2 St No 24 Wah Model Town Wah Cantt Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

283 Tousef Khan Niazi Tousef Khan Niazi 41303-2897591-9 Mohammad Hanif 589 - 238 238 - - - 827 589 - 238 238 - - - 827 Fl No 1 Bashiruddin Plaza Dominwah Road 284 Muhammad Yasin Muhammad Yasin 36502-6914007-7 Muhammad Yousaf 464 - 104 104 - - - 569 464 - 104 104 - - - 569 Yasin House Election Office Chak No 88/9-C Sahiwal 285 Muhammad Ashraf Muhammad Ashraf 33100-9229871-3 Sh Din Muhammad 559 - 145 145 - - - 705 559 - 145 145 - - - 705 China Silk Centre Shop No 6 St No 5 Anarkali Baz Bhawana Bazar Faisalabad

286 Sohail Ahmed Siddique Sohail Ahmed Siddique 41303-4667743-1 Imam Uddin 606 - 282 282 - - - 887 606 - 282 282 - - - 887 H No G-32/25 Plot No 35 Habib Centre Liaqat Colony Hyderabad 287 Muhammad Hamid Muhammad Hamid Rafique 33100-5322631-1 Muhammad Rafique 606 - 175 175 - - - 781 606 - 175 175 - - - 781 Rafique H No 652,St No 4 Muhammad Abad Satiana Road Faisalabad

288 Mohammad Ismail Malik Mohammad Ismail Malik 41204-9286312-1 Mir Mohammad Malik 544 - 141 141 - - - 685 544 - 141 141 - - - 685 Quarter No 3 Taluka Hospital Kotri Hyderabad

289 Muhammad Asim Anwar Muhammad Asim Anwar 37405-1516541-1 M Anwar 435 - 96 96 - - - 531 435 - 96 96 - - - 531 Sincert Industrises Plot No 8-9 Azher Street Behind Moti Mehal Cinema Rawalpindi

290 Sheikh Muhammad T Bilal Sheikh Muhammad T Bilal 36302-9412044-5 Sheikh Muhammad Aqoob 396 - 110 110 - - - 506 396 - 110 110 - - - 506 Sheikh And Co 2055 Hussain Agahi Multan

291 Syed Ali Raza Syed Ali Raza 36302-1421802-7 Syed Abdul Razaq Shah 419 - 119 119 - - - 537 419 - 119 119 - - - 537 Bukkhri House Kotla Waris Shah Near Ghungi No 1 Nishter Road Multan

292 Syed Rashid Sibteen Syed Rashid Sibteen 41205-0576308-3 Sed Kamal Sibteen 587 - 173 173 - - - 760 587 - 173 173 - - - 760 H No 236 Street 17 Sherfabad Housing Society Karachi No 5 293 Khawar Nazeer Khawar Nazeer 41306-2448468-7 Nazeer Ahmed Qureshi 632 - 194 194 - - - 826 632 - 194 194 - - - 826 H No 15 Happy Homes Citizen Colony Qasimabad

294 Abdul Qayyum Abdul Qayyum 36402-7893394-1 Hafiz M Mansha 465 - 128 128 - - - 593 465 - 128 128 - - - 593 Qayyum House Kanda Stop Nr Kalyana Hatta Road Pakpattan 295 Shahzada Muhammad Arbi Shahzada Muhammad Arbi 36302-7904359-5 Mian Rasool Buksh Qureshi 449 - 145 145 - - - 594 449 - 145 145 - - - 594 H No 1034 Muhalla Peer Qazi Jalal I/S Pak Gate Multan Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

296 Akbar Ashiq Ali Akbar Ashiq Ali 42201-0584692-1 Ashiq Ali 400 - 114 114 - - - 513 400 - 114 114 - - - 513 Bangalow # 2, Gulnoor Bangalow Garden East Karachi Opp. Soneri Bank

297 Umer Ijaz Butt Umer Ijaz Butt 34603-7590527-7 Ijaz Ahmed Butt 677 - 246 246 - - - 923 677 - 246 246 - - - 923 Nae Abadi Ameen Abad Road Habib Pura Sialkot

298 Asim Ameer Asim Ameer 35302-8976606-9 Ameer Ullah 481 - 167 167 - - - 648 481 - 167 167 - - - 648 H No 303 St No 17 Muhalla Sindhi Okara 299 Abid Hussain Abid Hussain 42101-1748717-9 Muhammad Nazar 395 - 132 132 - - - 527 395 - 132 132 - - - 527 H No C-47 Railway Gate Musa Colony Near Bilal Masjid Karachi 300 Ali Ahmed Ali Ahmed 34601-7235005-5 Khalil Ahmed 476 - 161 161 - - - 637 476 - 161 161 - - - 637 Daska Road Adda Shawr Sialkot 301 Izhar Zahir Izhar Zahir 42201-3459537-3 Zahir Parwaiz 385 - 244 244 - - - 628 385 - 244 244 - - - 628 House # K-200, 1St Floor Muhalla K-Area, Korangi # 5 Near Al-Habib Masjid

302 Aftab Ahmed Aftab Ahmed 34603-2235221-9 Habib Ullah 467 - 141 141 - - - 608 467 - 141 141 - - - 608 Mehar Link St, Main Fateh Garh Road, Umer E Farooq Masjid, Sialkot 303 Malik Muhammad Qasim Malik Muhammad Qasim 33100-4293821-7 Nazir Ahmed 493 - 175 175 - - - 668 493 - 175 175 - - - 668 H No P-40-41 Ground Floor St No 1 Primer Colony Nazim Abad Faisalabad 304 Zeeshan Butt Zeeshan Butt 35201-3238747-9 Muhammad Rafiq Butt 816 - 343 343 - - - 1,159 816 - 343 343 - - - 1,159 H No 10 St No 25-A Mujahid Pura Mughalpura

305 Malik Talib Hussain Malik Talib Hussain 33102-4553005-7 Malik Abdul Ghani 831 - 482 482 - - - 1,313 831 - 482 482 - - - 1,313 Shama Trading/Ms 7 Group P-1320/21 Block D- A Ghulam Muhammad Abad Faisalabad 306 Muhammad Nawaz Muhammad Nawaz 17301-4103736-7 Wali Muhammad 320 - 475 475 - - - 795 320 - 475 475 - - - 795 Nz Traders Flat No 25 2Nd Floor Cantonment Plaza Saddar Road Cantt Peshawar 307 Fida Muhammad Durrani Fida Muhammad Durrani 17301-4937109-3 Abdul Samad Durrani 231 - 377 377 - - - 607 231 - 377 377 - - - 607 Fida Poultery Services Shop No 12 Opp Mirch Mandi Charsada Road Peshawar 308 Shaukat Ali Shaukat Ali 37405-3737773-9 Mushtaq Ahmed 253 - 387 387 - - - 640 253 - 387 387 - - - 640 Sheikhs Store Shop No 15- E Aziz Bhatti Road Tariq Abad Lal Kurti Rawalpindi Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

309 Moeez Yousaf Ali Moeez Yousaf Ali 37405-3464290-5 Yousaf Ali Khitiyanawala 163 - 532 532 - - - 695 163 - 532 532 - - - 695 Khitiyanawala Khitiyanawala Moeez And Sons Off No 26 Saleh Market Adamjee Road Saddar Rawalpindi

310 Shiekh Shees Ahmed Shiekh Shees Ahmed 37405-2384525-5 Sheikh M Sharif 283 - 438 438 - - - 720 283 - 438 438 - - - 720 Flat No 3 Amir Plaza Commercial Area Chaklala Scheme Iii Rawalpindi

311 Amir Salah Ud Din Amir Salah Uddin 37405-5565776-3 Salah Uddin 484 - 782 782 - - - 1,267 484 - 782 782 - - - 1,267 Landco Intl Off No G-270 Flat No 4 College Road Rawalpindi 312 Asif Iqbal Asif Iqbal 91306-9650601-3 Muzaffar Khan 204 - 345 345 - - - 549 204 - 345 345 - - - 549 Asif Tents Service Sh No 278-2 Kamalabad Rawalpindi 313 Sheikh Mehboob Alam Sheikh Mehboob Alam 37405-0665263-5 Sheikh Muhammad Yaqoob 301 - 480 480 - - - 781 301 - 480 480 - - - 781 Yaqoob Yaqoob Alam Mala Mine Plot No Bb 927 Near Khayaban-E- Sir Syed Bridge Rawalpindi

314 Salman Saeed Khan Salman Saeed Khan 37405-3103743-5 Abdul Saeed Khan 304 - 473 473 - - - 776 304 - 473 473 - - - 776 Salman Associates Off No 15 1St Floor Majeed Plaza Bank Road Saddar Rawalpindi 315 Muhammad Rasheed Muhammad Rasheed 35302-5664631-3 Muhammad Ramzan 270 - 453 453 - - - 723 270 - 453 453 - - - 723 Ahmad Ahmad H No 92 Main Street Ghalla Mandi ,Okara 316 Masud Ahmed Khan Masud Ahmed Khan 37405-4314919-9 Abdul Majeed Khan 261 - 409 409 - - - 670 261 - 409 409 - - - 670 House No.45, Block-C-2, Punjab Govt. Cooperative Housing Society, Lahore

317 Waseem Gill Waseem Gill 35201-1707104-7 211 - 329 329 - - - 540 211 - 329 329 - - - 540 E-355,11-A,Gulbahar Colony, Husnainabad, Lahore Cantt. 318 Muhammad Hamid Muhammad Hamid 35200-1485201-1 Faiz Ullah Sulhri 502 - 740 740 - - - 1,242 502 - 740 740 - - - 1,242 86 Block-J Gulberg Iii Lahore 319 Muhammad Akram Muhammad Akram 35202-5600335-5 Muhammad Ashraf 204 - 327 327 - - - 531 204 - 327 327 - - - 531 Nib House 3Rd Floor 14 A Shahra-E-Aiwan-E-Tijarat Old Racecourse Road Lahore Lahore 320 Ahsan Khalique Khan Ahsan Khalique Khan 35200-1471196-3 Nisar Ahmed Khan 403 - 617 617 - - - 1,021 403 - 617 617 - - - 1,021 60/9C Kacha Farezepur Road Icma Mazang Chungi Lahore 321 Waseem Rafiq Waseem Rafiq 35201-4426855-7 Muhammad Rafiq 503 - 778 778 - - - 1,281 503 - 778 778 - - - 1,281 Wark International 9 Noon Avenue Muslim Town Lahore Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

322 Muhammad Asim Muhammad Asim 35202-2741488-5 Muhammad Qasim 361 - 600 600 - - - 961 361 - 600 600 - - - 961 Flat No 5 B,2Nd Floor Gul Plaza Main Market Gulberg Lahore 323 Chaudry Naeem Yousf Chaudry Naeem Yousf 35202-2926553-5 Ch M Yousf 196 - 312 312 - - - 507 196 - 312 312 - - - 507 H No 173 Pak Block Allama Iqbal Town Lahore

324 Syed Kamran Ahmad Syed Kamran Ahmad 35202-2057547-1 Ahmed Ali 303 - 447 447 - - - 749 303 - 447 447 - - - 749 H No 28 Block B New Muslim Town Lahore 325 Muhammad Raza Kazmi Muhammad Raza Kazmi 35200-1527100-1 Hasan Zaki Kazmi 204 - 328 328 - - - 532 204 - 328 328 - - - 532 543 -B Pcsir Ii Lahore Lahore 326 Salman Farrokh Salman Farrokh 35202-5643640-1 M Farrukh Hassan 231 - 340 340 - - - 571 231 - 340 340 - - - 571 Masood Textile Mills Ltd 16/3 A Eden Homes Main Gulberg Lahore 327 Faiz Ul Haq Faiz Ul Haq 35202-3990479-3 Abdul Haq 453 - 691 691 - - - 1,144 453 - 691 691 - - - 1,144 Gujranwala Shafoon House Shop No 9 Bano Market,188-Multan Road Near Doctor Rasheed Dispensery Lahore

328 Mohammad Bilal Mohammad Bilal 35202-6484057-3 Sheikh Khalid Amin 223 - 333 333 - - - 556 223 - 333 333 - - - 556 Varity Hardwre Store 18- Sultan Ahmad Road Ichra Lahore 329 Muhammad Munir Butt Muhammad Munir Butt 35202-6544897-3 M Bashir Butt 193 - 309 309 - - - 501 193 - 309 309 - - - 501 Kashmir Paint House 7/8 Al Madina Road Township Lahore 330 Syed Tahir Ali Syed Tahir Ali 35201-1587760-3 Syed Azher Ali 236 - 354 354 - - - 590 236 - 354 354 - - - 590 Beadon Aluminium Pvt Ltd 8-Live Stock Building 16 Cooper Road Lahore

331 Muhammad Aslam Muhammad Aslam 35202-8938862-7 Chouhdry Shair 388 - 596 596 - - - 984 388 - 596 596 - - - 984 Mukarram Mukarram Muhammad H No 113,Khyber Block, Allama Iqbal Town, Lahore

332 Syed Ather Ali Shah Syed Ather Ali Shah 35201-1587734-3 Syed Azhar Ali Shah 310 - 467 467 - - - 777 310 - 467 467 - - - 777 Beadon Almunium Pvt B Live Stock Building 16 Cooper Road Lahore 333 Qaiser Mubarik Qaiser Mubarik 33202-1382469-1 Mubarak Hussain 212 - 329 329 - - - 541 212 - 329 329 - - - 541 H No 298-D Rizwan Block Awan Town Lahore

334 Syed Azfar Ali Syed Azfar Ali 35201-1587751-1 Syed Azhar Ali 344 - 526 526 - - - 870 344 - 526 526 - - - 870 Beadon Aluminium 16 Cooper Road Lahore 335 Syed Munawar Hussain Syed Munawar Hussain 35200-1405463-5 Syed M Sadiq Rizvi 248 - 402 402 - - - 650 248 - 402 402 - - - 650 Rizvi Rizvi H No 12 Block Q Model Town Lahore Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

336 Shahzada Ahsan Ashraf Shahzada Ahsan Ashraf 35201-8342906-9 Muhammad Ashraf 204 - 440 440 - - - 644 204 - 440 440 - - - 644 Ahsan Shahzaib Enterprises Suit No 3 5Th Floor Liberty Height 75/A Gulberg Ii Lahore

337 Syed Sohail Raza Rizvi Syed Sohail Raza Rizvi 35200-1455456-7 Sed Munawar Hussain 323 - 519 519 - - - 843 323 - 519 519 - - - 843 H No 12-Q, Link Road, Rizvi Model Town, ,Lahore 338 Muhammad Ashraf Muhammad Ashraf 35202-2803625-9 Ch Namet Ali 501 - 742 742 - - - 1,244 501 - 742 742 - - - 1,244 H No 3 St No 9 Ramnagar Rajgar Lahore

339 Muhammad Shahid Muhammad Shahid 35202-2301559-1 M Ashfaq 444 - 660 660 - - - 1,103 444 - 660 660 - - - 1,103 Well Dress Garments Shop No 15 Ground Floor Chad Centre Rang Mehal Lahore 340 Muhammad Rafique Muhammad Rafique 35201-1595479-7 Atta Muhammad 226 - 378 378 - - - 604 226 - 378 378 - - - 604 H No 8 A St No 167 A Chaman Park Baghban Pura Lahore 341 Hamid Khursheed Hamid Khursheed 33301-7836141-3 Muhammad Sharif 198 - 409 409 - - - 607 198 - 409 409 - - - 607 H No 85-A Ali Block Awan Town Multan Road Lahore

342 Syed Mashhudul Hassan Syed Mashhudul Hassan 35202-2591521-5 S Mehmood Ul Hassan 228 - 361 361 - - - 590 228 - 361 361 - - - 590 Novel Technics,Off No 49- 50/A Gallemar One Plaza Peco Road Township Near Mochipura Stop Lahore

343 Faisal Javed Faisal Javed 35202-2755775-9 Javed Feroz 252 - 389 389 - - - 642 252 - 389 389 - - - 642 Crown Autos Iqbal Park Near Main Gate Street 12 Defence Housing Authority Lahore Cantt 344 Amir Ali Amir Ali 35202-5843816-5 Ghulam Hassan Qureshi 483 - 777 777 - - - 1,259 483 - 777 777 - - - 1,259 Qureshi Photo Shop 90 Chamber Lain Road Masjid Mai Ladp,Lahore 345 Najam Ul Hassan Najam Ul Hassan 35202-2569243-3 Hassan Akhtar 184 - 317 317 - - - 501 184 - 317 317 - - - 501 Feild Care Pvt. Ltd Office No 46 1St Floor Israr Center Block B1 Jouhar Town Lahore 346 Awais Khalid Awais Khalid 35201-5717535-1 M Khalid 200 - 344 344 - - - 544 200 - 344 344 - - - 544 Awais Autos 93 Lytton Road Lahore 347 Awais Mehdi Awais Mehdi 35202-1643714-9 Sh Tahir 200 - 307 307 - - - 507 200 - 307 307 - - - 507 Tahir Brothers 53 New Alamgeer Market Shah Alam Lahore 348 Jamshaid Ur Rehman Butt Jamshaid Ur Rehman Butt 35202-6161581-1 Muhammad Jmeel Butt 353 - 545 545 - - - 898 353 - 545 545 - - - 898 H No 43 Charagh Park Shadbagh Lahore

349 Syed Mohsin Ali Syed Mohsin Al 35201-1444261-7 Syed Sarwat Ali 344 - 525 525 - - - 870 344 - 525 525 - - - 870 42- Cooper Road, Lahore Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

350 Syed Kamran Ali Syed Kamran Ali 35201-3202378-1 Syed Azhar Ali 258 - 399 399 - - - 658 258 - 399 399 - - - 658 Beadon Aluminum Pvt Ltd 8-Live Stock Building 16- Copper Road Lahore

351 Waseem Iqbal Waseem Iqbal 35102-5339575-9 242 - 401 401 - - - 643 242 - 401 401 - - - 643 Waseem Brothers 37 Meco Steel Sheet Loha Market Landa Bazar ,Lahore

352 Muhammad Shah Nawaz Muhammad Shah Nawaz 35202-3008007-9 Muhammad Akram 273 - 426 426 - - - 699 273 - 426 426 - - - 699 Ameer Cloth House Syed Bukhtiyae Shah Gillani Market Shop No 4 Pakistani Chowk Near Habib Bank Icchra Lahore

353 Muhammad Arshad Muhammad Arshad 35202-8788211-3 Mian Muhammad 303 - 493 493 - - - 796 303 - 493 493 - - - 796 Eastern Trading Corporation 11 Amin Market Nishter Road Nr Abl ,Lahore 354 Muhammad Raiz Rana Muhammad Raiz Rana 35201-1485963-1 Muhammad Shafi Rana 253 - 404 404 - - - 657 253 - 404 404 - - - 657 Nest Builders 7 Associates 42 Commercial Zoon Defence Lane Ghazi Road ,Lahore

355 Muhammad Azam Muhammad Azam 35202-4055981-5 Muhammad Hussain 202 - 335 335 - - - 537 202 - 335 335 - - - 537 Diamond Traders Suit No 7 1St Flr Farooq Centr Lahore Hotel Mcleod Road Lahore 356 Khalid Mahmood Khalid Mahmood 35201-2147379-1 Nazaam Din 202 - 321 321 - - - 523 202 - 321 321 - - - 523 Auto Roots Workshop E- 18 Ground Floor Abid Road Mian Walton Road Cantt Lahore 357 Nadeem Ahmed Nashat Nadeem Ahmed Nashat 35201-1016595-3 Abdul Ghafur 203 - 334 334 - - - 537 203 - 334 334 - - - 537 Nishat House St No 61 S Behind Old Police Station Ghaziabad Lahore

358 Adeel Nazir Adeel Nazir 35202-7157147-1 Malik Muhammad Nazir 294 - 482 482 - - - 776 294 - 482 482 - - - 776 H No 99 Feroz Din Street Tariq Colony Multan Road Sodiwal Lahore

359 Muhammad Tayyab Siddiqi Muhammad Tayyab Siddiqi 35202-2325508-7 Ashfaq Ahmed Sadiqui 201 - 331 331 - - - 532 201 - 331 331 - - - 532 Al Rahim Goods 20 Baber Market 79 Ferozpur Road Lahore

360 Nadeem Sadiq Mian Nadeem Sadiq Mian 35202-2808942-7 Choudhry Muhammad 180 - 401 401 - - - 581 180 - 401 401 - - - 581 H No 59 A Neelam Block Sadiq Allama Iqbal Town ,Lahore

361 Zahid Mahmood Zahid Mahmood 35202-2844017-5 Tahir Mahmood 400 - 606 606 - - - 1,006 400 - 606 606 - - - 1,006 H No 13 St No 23 Sultan Pura Lahore Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

362 Muhammad Ali Hussain Muhammad Ali Hussain 35202-3228286-1 Zaheer Ud Din Butt 202 - 304 304 - - - 506 202 - 304 304 - - - 506 Butt Butt 431 Nargis Block Allama Iqbal Town Lahore

363 Syed Saba Sohail Syed Saba Sohail 42101-1767918-0 Syed Sohail Ahmed 300 - 459 459 - - - 759 300 - 459 459 - - - 759 H No R 226 Sector 14 B Shadman Town Main Road North Karachi Karachi

364 Sohail Sohail 42301-8867671-7 Abdul Sattar 422 - 594 594 - - - 1,017 422 - 594 594 - - - 1,017 Sunlight Pakistan 1C Office No# 4 Second Floor 3Rd Zamzama Lane Ph 5 Dha Karachi 365 Javed Ahmed Javed Ahmed 42101-6094074-3 Muhammad Abdul Qudoos 324 - 473 473 - - - 797 324 - 473 473 - - - 797 Anjum Asim Shahid Rahman Moderan Motor House 3Rd Floor Beaumont Road Pidc ,Karachi 366 Tabish Taufiq Tabish Taufiq 42201-3836065-3 Muhammad Taufiq 207 - 308 308 - - - 514 207 - 308 308 - - - 514 Blue Chip International Plot Number 9, Muslim Colony Smchs, Block- B Beside Ftc Building Karachi

367 Sabiha Junaid Farooqi Sabiha Junaid Farooqi 42201-9184430-2 Muhammad Junaid 370 - 555 555 - - - 925 370 - 555 555 - - - 925 The Country School C-5 Block 13-D Gulshan-E- Iqbal Karachi 368 Aslam Aziz Akhai Aslam Aziz Akhai 42201-4051658-9 Akhai Galenika 219 - 334 334 - - - 553 219 - 334 334 - - - 553 103/K Block 2 P E C H S Shahrah E Quadeen Karachi 369 Mansoor Javed Mansoor Javed 42301-8313662-3 Iqrar Hussain 487 - 727 727 - - - 1,214 487 - 727 727 - - - 1,214 H No 59/1 24Th Lane Khayaban-E-Badban Dha Phase 7 Karachi 370 Syed Hussain Afaq Syed Hussain Afaq 42101-8143345-5 Syed Afaq Hussain 300 - 459 459 - - - 759 300 - 459 459 - - - 759 A C B Pvt Ltd 7 Amber Castle Block 6 Shahrah-E- Faisal Karachi 371 Shamshad Ali Memon Shamshad Ali Memon 42201-4490411-9 M W Memon 391 - 586 586 - - - 977 391 - 586 586 - - - 977 Fl No 265/3 Zeenat Terrace Apt No 301 Byjchs 14Th Street Bahadurabad Karachi 372 Syed Ibne Hasan Syed Ibne Hasan 42101-8525951-3 Syed Hussain Mohd 370 - 565 565 - - - 935 370 - 565 565 - - - 935 House No R-570 Ancholi Block 20 F B Area Karachi

373 Kaneez Sayida Kaneez Sayida 42101-7673976-8 Sed Abu Jaffer 200 - 308 308 - - - 509 200 - 308 308 - - - 509 Acb Pvt Ltd. 7-Amber Castle Block-6 Shahrah-E- Faisal Pechs Karachi 374 Abdul Rehman Khan Abdul Rehman Khan 42101-7048239-3 Abdul Rauf Khan 222 - 371 371 - - - 594 222 - 371 371 - - - 594 H/No B-172 Block L Central North Nazimabad Karachi Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

375 Alamzeb Khan Alamzeb Khan 42000-0494452-9 M Anwer Khan 215 - 321 321 - - - 536 215 - 321 321 - - - 536 H No : 39 , Street No : 2 Ahbab Colony , Thokar Niaz Baig Lahore- 53700 Lahore 376 Muhammad Irshad Ullah Muhammad Irshad Ullah 42201-1296831-3 Muhammad Anayat Ullah 308 - 454 454 - - - 762 308 - 454 454 - - - 762 Qureshi Qureshi Qureshi House No.32 Survey No.464 Near Jannat Ul Barkat Model Colony Karachi 377 Syed Taufiq Ali Mosvi Syed Taufiq Ali Mosvi 42501-1509460-5 Syed Moharam Husain 301 - 461 461 - - - 761 301 - 461 461 - - - 761 Flat No A-78 Faraz Avenue Rashid Minhas Roa Gulistan-E-Johar Karachi

378 Sheikh Abdul Hafeez Sheikh Abdul Hafeez 42301-7311703-1 Sh Abdul Majeed 442 - 662 662 - - - 1,104 442 - 662 662 - - - 1,104 Punjab Engineering Services 6-R B-12 M A Jinnah Road South Karachi

379 Syed Musharaf Ali Naqvi Syed Musharaf Ali Naqvi 42101-9654868-7 Syed Moazam Ali 491 - 735 735 - - - 1,225 491 - 735 735 - - - 1,225 H No R-922 Block 20 F B Area Karachi

380 Muhammad Sarwar Muhammad Sarwar 36501-1794937-3 Nazir Ahmed 341 - 534 534 - - - 875 341 - 534 534 - - - 875 A 322/2 Sector 11 G Godara Colony New Karachi ,Karachi 381 Wali Bhai Valika Wali Bhai Valika 42401-1987592-7 Najmuddin Wali Bhai Valika 219 - 331 331 - - - 550 219 - 331 331 - - - 550 Wali Bhai Valika 61-A New Quues Road Lalazar Steet No 4 Near Boat Club Karachi 382 Syed Shahnawaz Ahmed Syed Shahnawaz Ahmed 42101-8810566-7 S Maqbool Ahmed 210 - 344 344 - - - 554 210 - 344 344 - - - 554 B-256 Block N North Nazimabad Karachi

383 Ahmed Hussain Ahmed Hussain 42000-0518887-3 Mumtaz Hussain 374 - 544 544 - - - 918 374 - 544 544 - - - 918 New Indus Autos Part And Car A Shop No 21 Rashid Minhas Road Kda Flats Blk 10-A Gul-E-Iqbal Karachi

384 Mohammad Younus Karar Mohammad Younus Karar 42201-2749316-3 Tayyab Karar 361 - 547 547 - - - 908 361 - 547 547 - - - 908 Usmania Book Centre Shop No 43-A New Urdu Bazar Robson Road Urdu Bazar Karachi

385 Basharat Ali Khan Basharat Ali Khan 37203-5332378-7 Malik Naseer 457 - 679 679 - - - 1,136 457 - 679 679 - - - 1,136 Fahad Cargo Services, Gate 4 Quaid Azam Truck Stand, St No A-654 Gole Mkt Maripur, Hawksbay Karachi 386 Ibrahim Abdullah Ibrahim Abdullah 42101-8040148-9 Abdullah Sheikh 500 - 752 752 - - - 1,253 500 - 752 752 - - - 1,253 Abdullah Enterprises 1-J 51/3 Nazimabad No 1 Karachi Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

387 Abdul Jabbar Abdul Jabbar 42101-1433194-3 Abdul Sattar 457 - 674 674 - - - 1,131 457 - 674 674 - - - 1,131 Friends Traders A-29/P Site Near B P Bread Khi ,Karachi 388 Munir Ahmed Hashmi Munir Ahmed Hashmi 42101-2981746-7 Zahoor Ahmed Hashmi 493 - 710 710 - - - 1,203 493 - 710 710 - - - 1,203 Dehli Pakwan Centre Hashmi Centre Sector 11-J Up More North Nr Caltex Pump Karachi 389 Malik Abdul Khaliq Malik Abdul Khaliq 42000-0381103-1 Malik Abdul Jalil 341 - 540 540 - - - 881 341 - 540 540 - - - 881 A-19, Block I, North Nazimabad Karachi 390 Sheikh Muhammad Aqeel Sheikh Muhammad Aqeel 42000-6156658-7 Sheikh M Samir 351 - 546 546 - - - 897 351 - 546 546 - - - 897 Bangla D-7Rufi Green Land Socity 13-A Shcme33 Abdul Hasanasfani Road Karachi

391 Saqib Iqbal Saqib Iqbal 42201-7054208-7 M Iqbal Nagda 191 - 317 317 - - - 508 191 - 317 317 - - - 508 H No 133-A Sharfabad Block 3 Karachi 392 Imran Rafi Imran Rafi 42101-5172675-3 Rafi Uddin 480 - 724 724 - - - 1,204 480 - 724 724 - - - 1,204 Rafi Marble Plot # 90 Alfateh Colony Chaman Cinema Bara Board Karachi 393 Khursheed Ali Ansari Khursheed Ali Ansari 42101-1764316-5 M Baksh Ansari 345 - 512 512 - - - 857 345 - 512 512 - - - 857 H No A/22 Sector 11B C/O Azeem General Store North Karachi Karachi

394 Muhammad Azeem Khan Muhammad Azeem Khan 42201-1491397-5 M Shafi Ul Qadr 500 - 737 737 - - - 1,237 500 - 737 737 - - - 1,237 Gulberg Decoration Service C/17 Block 12 Gulberg F B Area Karachi

395 Muhammad Akram Muhammad Akram 42101-9886460-1 Abdul Haleem 257 - 404 404 - - - 661 257 - 404 404 - - - 661 H No B-209 Sector 11/B North Karachi Karachi 396 Abdul Samad Abdul Samad 42201-0371566-3 Mohammad Siddique 215 - 339 339 - - - 554 215 - 339 339 - - - 554 Elegant Textile Industries Ci-59-60 Sector 16-B North Karachi Industrial Area Karachi

397 Muhammad Akram Muhammad Akram 36302-3280323-7 Barkat Ali 338 - 675 675 - - - 1,013 338 - 675 675 - - - 1,013 H No 488/2 Ansar Colony Main Bazar Multan

398 Khuram Saeed Khuram Saeed 36303-2588403-5 Muhammad Saeed 273 - 472 472 - - - 745 273 - 472 472 - - - 745 Mercolink Electronics 17777/52 Lmq Road Chungi No 8 Multan 399 Muhammad Gohar Zaman Muhammad Gohar Zaman 36302-3985019-3 Munawar Ahmad Khan 195 - 307 307 - - - 502 195 - 307 307 - - - 502 H No10 Street N Block Z New Multan Multan.03007192069 Multan4550190 Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

400 Sagheer Ahmed Sagheer Ahmed 36302-0334248-3 Muhammad Ramzan 285 - 470 470 - - - 756 285 - 470 470 - - - 756 H No 236 St No 6 Muhalla Din Pura Samijabad No 1 Multan 401 Mirza Sultan Mehmood Mirza Sultan Mehmood 36302-2554218-9 Mirza Mukhtar Ahmed Baig 302 - 436 436 - - - 738 302 - 436 436 - - - 738 Baig Baig H No 2161-W8M Muhalla Cheeta Wan Shah Rassal Road Multan

402 Fayyaz Ul Hassan Fayyaz Ul Hassan 34603-7209250-9 Ch Muhammad Ishaq 451 - 699 699 - - - 1,150 451 - 699 699 - - - 1,150 W S Farms New Mubarik Pura Rodas Road Road Sialkot Sialkot

403 Ali Faroqq Cheema Ali Faroqq Cheema 34603-4833812-7 Farooq Ahmed Cheema 339 - 524 524 - - - 862 339 - 524 524 - - - 862 Sardar Pak Daska Road, Nr,Tata Factory, ,Sialkot

404 Bilal Bashir Bilal Bashir 34603-9479420-9 Muhammad Bashir 389 - 617 617 - - - 1,006 389 - 617 617 - - - 1,006 King Z Sports Kashmir Road, Sublime Chowk, ,Sialkot 405 Umer Farooq Cheema Umer Farooq Cheema 34603-3583001-7 Choudhary Farooq Ahmed 197 - 313 313 - - - 510 197 - 313 313 - - - 510 Sardar Pak Po Box No 20, Cheema Daska Road,Nr Recto Sports, ,Sialkot 406 Ejaz Ahmad Ejaz Ahmad 34603-5446143-3 Muhammad Nawaz 291 - 420 420 - - - 711 291 - 420 420 - - - 711 Ejaz Brothers Muhalla Haji Pura Fateh Garh Road Sialkot 407 Rehan Iqbal Rehan Iqbal 34603-6803925-1 Sheikh M Iqbal 300 - 465 465 - - - 765 300 - 465 465 - - - 765 New Decent Medicose 33 Ali Park New Civil Line Pak Pura Sialkot 408 Rizwan Iqbal Rizwan Iqbal 34603-6802975-1 Muhammad Iqbal 308 - 478 478 - - - 785 308 - 478 478 - - - 785 New Decent Medicose 33- Ali Park New Civil Line Pak Pura Sialkot 409 Muhammad Ali Raza Muhammad Ali Raza 34603-0434281-1 Muhammad Irshad 202 - 323 323 - - - 524 202 - 323 323 - - - 524 Mekasomed Enterprises St No 2 Muhalla Islamabad Ugoki O-O Khas Sialkot

410 Jamshed Ali Jamshed Ali 45402-2000384-5 Ghulam Rasool 402 - 622 622 - - - 1,024 402 - 622 622 - - - 1,024 Nazeer Xray And Ultrasound Masjid Road Jamia Masjid ,Nawabshah

411 Intzar Hussain Intzar Hussain 42101-3758542-1 Nizam Ul Din 196 - 326 326 - - - 522 196 - 326 326 - - - 522 Talah And Shaikh Brothers Station Road Sakrand ,Nawabshah 412 Sharif Ud Din Sharif Ud Din 45403-0793753-9 Moin Uddin 464 - 742 742 - - - 1,206 464 - 742 742 - - - 1,206 Village Tali P/O Taluka Sakran D Taluka Sakrand Nawabshah 413 Shakeel Ahmed Shakeel Ahmed 45402-7513523-3 Basher Ahmed 249 - 415 415 - - - 664 249 - 415 415 - - - 664 Grace Silk Centre Tayaba Shop No 10 Katchery Road ,Nawabshah Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

414 Nadeem Muzaffar Nadeem Muzaffar 37301-2343251-1 Muzaffar Hussain Qureshi 176 - 425 425 - - - 601 176 - 425 425 - - - 601 H No F-52 Mohalla Neha Bazar, Jehlum ,Jhelum 415 Syed Raza Hussain Shah Syed Raza Hussain Shah 34203-7819228-5 Syed Shahzada Hussain 202 - 324 324 - - - 527 202 - 324 324 - - - 527 Syed Traders Railway Line Shah Saray Alamgir ,Jhelum

416 Imran Safdar Imran Safdar 37301-2277326-3 Safdar Ali Khan 232 - 349 349 - - - 581 232 - 349 349 - - - 581 S R Traders Lahore More Jhelum ,Jhelum 417 Hafiz Waqas Mazhar Hafiz Waqas Mazhar 34202-5075757-3 Muhammad Mazhar 202 - 323 323 - - - 525 202 - 323 323 - - - 525 Shaikh Communication Hussain Ufone Dea Gt Road Dina ,Jhelum 418 Khawar Mushtaq Chisti Khawar Mushtaq Chisti 31202-8141901-9 Muhammad Mushtaq 205 - 305 305 - - - 510 205 - 305 305 - - - 510 H No B-Iii-1761, Chishti Hussain Chist Lodge, Mohalla Chishtian, ,Bahawalpur 419 Shahzad Ahmed Shahzad Ahmed 34101-3494036-1 Sarfaraz Ahmed 338 - 518 518 - - - 856 338 - 518 518 - - - 856 Aero Pak 6-A Trust Plaza Gt Road Gujranwala

420 Muhammad Kashif Muhammad Kashif 34101-2729673-3 Muhammad Aslam 243 - 380 380 - - - 623 243 - 380 380 - - - 623 Kashif And Brothers Mineral Tr Deuora Phatak Gt Road Gujranwala

421 Naveed Asghar Naveed Asghar 34101-6455041-5 Asghar Ali Cheema 206 - 307 307 - - - 513 206 - 307 307 - - - 513 H.49 Cb Bazar Area Gujranwala Cantt Gujranwala Gujranwala 422 Muhammad Munir Muhammad Munir 34101-9106430-1 Muhammad Nazeer 294 - 449 449 - - - 744 294 - 449 449 - - - 744 H No 8 Gali Iqra School Wali Shaheen Abad P O Climax Abad Gujranwala

423 Chaudhay Khuram Shah Chaudhay Khuram Shah 34101-2458031-5 Shahnawaz Chaudhary 265 - 389 389 - - - 654 265 - 389 389 - - - 654 Nawaz Nawaz Al Hamd Traders Al Hamd Group Gill Road Hameed Colony ,Gujranwala

424 Mujahid Iqbal Mujahid Iqbal 34101-2632687-9 Muhammad Ashraf 245 - 371 371 - - - 616 245 - 371 371 - - - 616 Alvi Steel Decorater Alvi Gril Maker Main Gt Road Mor Eminabad Nr Railway Cros,Gujranwala

425 Muhammad Rafaq Muhammad Rafaq 34101-4349000-3 Muhammad Younis 248 - 366 366 - - - 614 248 - 366 366 - - - 614 Younas & Sons Usman Colony,St.4,Galla Patwar I Wala,Noshera Road, Gujranwala 426 Muhammad Fakhr Ul Muhammad Fakhr Ul 36402-5151984-7 Sardar Nawazish Ali 219 - 322 322 - - - 541 219 - 322 322 - - - 541 Zaman Dogar Zaman Dogar Zaman Grain Market Pakpattan ,Sahiwal 427 Ghulam Safdar Ghulam Safdar 36402-8480735-3 Nawab 198 - 318 318 - - - 516 198 - 318 318 - - - 516 Gulsan Farid Colony Raliway Road H No 2 Gali No 2 Pakpattan Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

428 Jamshaid Bashir Jamshaid Bashir 36502-3493021-9 Bashir Ahmed 424 - 614 614 - - - 1,038 424 - 614 614 - - - 1,038 H No 350 St B-Vii Fateh Shair Colony Sahiwal 429 Saleem Hashmat Saleem Hashmat 42201-7613715-3 Kanwer Hashmat 483 - 712 712 - - - 1,195 483 - 712 712 - - - 1,195 Indus Tv Network 3Rd Floor Shafi Courts Meriwethar Road Saddar Karachi 430 Syed Zeeshan Abbas Syed Zeeshan Abbas 42101-1421211-5 Syed Nisar Abbas 326 - 501 501 - - - 827 326 - 501 501 - - - 827 H No R-604 Sector 15-A-4 Buffer Zone North Karachi, Karachi 431 Shaikh Abdul Rahim Shaikh Abdul Rahim 42201-2315997-3 Abdul Rasheed 231 - 367 367 - - - 598 231 - 367 367 - - - 598 Plastic Technology Centre College Of Polymer Engineering St-2/1 Sec 30 Korangi I Area Karachi

432 Mirza Raza Amir Mirza Raza Amir 42201-1088114-7 Mirza M Hassan 206 - 331 331 - - - 537 206 - 331 331 - - - 537 H No R-144 Block 6 Gulshan-E-Iqbal Karachi 433 Missbha Ud Din Missbha Ud Din 42201-0739347-5 Ashfaq Ahmad Kharimi 260 - 396 396 - - - 655 260 - 396 396 - - - 655 1St Floor, 287,P.I.B Colony ,Karachi 434 Syed Yawar Abbas Syed Yawar Abbas 42101-0479818-5 Syed Nissaer Abbas 422 - 633 633 - - - 1,056 422 - 633 633 - - - 1,056 H No R-604 Sector 15-A-4 Buffer Zone North Karachi ,Karachi 435 Muhammad Rashid Khan Muhammad Rashid Khan 42000-4592277-3 Vilayat Khan 213 - 333 333 - - - 546 213 - 333 333 - - - 546 Banglow No 57 Sheet No 22 Model Colony Malir Karachi

436 Irfan Sattar Irfan Sattar 42201-0593918-5 Abdul Sattar 404 - 598 598 - - - 1,002 404 - 598 598 - - - 1,002 H No B-52 City Homes Block 13-D-2 Gulshan-E- Iqbal ,Karachi 437 Moona Farhan Moona Farhan 42201-1643152-4 Muhammad Farhan 502 - 775 775 - - - 1,277 502 - 775 775 - - - 1,277 332-334 2Nd Floor Fl No 3 Qureshi Qasi Center Block 2 Pechs ,Karachi 438 Mushtaq Ali Jivani Mushtaq Ali Jivani 42301-0847957-1 Hussain Ali 502 - 753 753 - - - 1,255 502 - 753 753 - - - 1,255 Flat No C-106 Ml Paradise Nishter Park Solder Bazar No 2 ,Karachi

439 Mohammed Junaid Mohammed Junaid 42201-9461111-9 Muhammad Saleem 252 - 399 399 - - - 651 252 - 399 399 - - - 651 Decent Cars 148-A Alama Iqbal Road Block 2 Pechs Karachi 440 Muhammad Imran Muhammad Imran 42201-9329481-7 Muhammad Suleman 286 - 464 464 - - - 750 286 - 464 464 - - - 750 H No B-1/2 Block A Kazimabad Model Colony ,Karachi 441 Syed Tahir Hasan Syed Tahir Hasan 42101-0331090-9 S Azhar Hasan 260 - 432 432 - - - 691 260 - 432 432 - - - 691 Tahir Furniture Plot No C-7 Ishaqabad Sir Shah Suleman Road F B Area Karachi Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

442 Muhammad Imran Kayani Muhammad Imran Kayani 42201-0609905-7 M Sabir Kayani 503 - 806 806 - - - 1,309 503 - 806 806 - - - 1,309 Pak Autos 78 - C 22 Commercial Street Dha Phase 2 Extension Karachi

443 Mohammad Amin Mughal Mohammad Amin Mughal 42301-0800937-9 Allah Dita 222 - 359 359 - - - 581 222 - 359 359 - - - 581 Plot No 385 No 5 Allama Iqbal Colony Mehmoodabad Karachi

444 Farhan Ibrahim Farhan Ibrahim 42101-1554481-3 Ibrahim 347 - 555 555 - - - 902 347 - 555 555 - - - 902 Flat No A 38 Block 20 Mazia Square Al Noor More F B Area Karachi 445 Syed Imtiaz Ul Haq Syed Imtiaz Ul Haq Bukhari 42201-2983522-1 Anzar Ul Haq 395 - 638 638 - - - 1,033 395 - 638 638 - - - 1,033 Bukhari C-26 Block No 6 Gulshan E Iqbal Karachi 446 Muhammad Zia Khalil Muhammad Zia Khalil 42201-6524810-7 Muhammad Khalil 442 - 678 678 - - - 1,120 442 - 678 678 - - - 1,120 Khalil Packages L-29/B Block 21 F B Industrial Area Karachi 447 Asif Moin Asif Moin 42101-8147430-9 Moin Ud Din 494 - 758 758 - - - 1,252 494 - 758 758 - - - 1,252 H No R-555 Sector 15-B Buffer Zone North Karachi Karachi 448 Abdul Raheem Johar Abdul Raheem Johar 31101-1663240-3 Muhammad Shoaib 220 - 468 468 - - - 688 220 - 468 468 - - - 688 North Communication Near Paracha Data Flying Coach Bahawalnagar 449 Abdul Qadir Abdul Qadir 42201-0469800-7 Qazi Abdul Malik 503 - 806 806 - - - 1,308 503 - 806 806 - - - 1,308 A-9 Rehmanabad Near Al Noor Biryani Centre Drigh Road Karachi 450 Kamran Hussain Kamran Hussain 42101-8037228-3 Zahoor Hussain 502 - 780 780 - - - 1,282 502 - 780 780 - - - 1,282 Quality Car Decoration Point Shop No 3 Al Siraj Square Block 14 F B Area Karachi 451 Riaz Ahmed Riaz Ahmed 42401-1945091-1 Abdul Ghafoor 502 - 739 739 - - - 1,241 502 - 739 739 - - - 1,241 Millat Book Point Shop No 493-1 Bangla Bazar Sec 15-A Orangi Town Karachi

452 Syed Aamir Iqbal Syed Aamir Iqbal 42101-0276643-1 Syed Iqbal Hussain 502 - 778 778 - - - 1,280 502 - 778 778 - - - 1,280 Quality Textile Plot No 240 11-E Orangi Town ,Karachi

453 Muhammad Tasneem Ul Muhammad Tasneem Ul 42101-1108324-5 Muhammad Zaheer Ul Haq 336 - 543 543 - - - 879 336 - 543 543 - - - 879 Haq Haq Flat No B-18 Nadeem Arcade 4 Th Floor Shadman Town Sec 14-B North Nazimabad Town Karachi 454 Raja Jawed Sultan Raja Jawed Sultan 42101-3099261-1 Raja Muhammad Inyat 502 - 790 790 - - - 1,292 502 - 790 790 - - - 1,292 H No 739/19 Al Noor Khan Socieity F B Area ,Karachi Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

455 Altaf Hussain Altaf Hussain 35201-1690262-7 Gulam Hussain 490 - 734 734 - - - 1,223 490 - 734 734 - - - 1,223 Arsal Metal Scarp Plot No 125 Gali No 11 Block A Sher Shah Karachi 456 Khawaja Zaheer Ahmed Khawaja Zaheer Ahmed 42101-1416840-3 Khawaja Nazeer 307 - 484 484 - - - 791 307 - 484 484 - - - 791 Fl No A-31 4Th Floor Noman Avenue Rashind Minhas Gulistan-E-Johar Karachi

457 Adnan Adnan 42101-1847436-5 Fazal Mehmood 470 - 743 743 - - - 1,212 470 - 743 743 - - - 1,212 H No R-101 Block 5 Azizabad F B Area Karachi

458 Muhammad Anis Muhammad Anis 42101-1938382-9 Mohammad Hanif 329 - 618 618 - - - 947 329 - 618 618 - - - 947 H No 4/377 Street 4 Liaquatabad Karachi 459 Shaikh Mohammad Yousuf Shaikh Mohammad Yousuf 42101-7289624-9 Shaikh Mohammad Younus 502 - 767 767 - - - 1,269 502 - 767 767 - - - 1,269 Abbasi Shaheed Chemist, Shop No.3-8-8/39, Near Abbasi Shaheed Hospital, Karachi

460 Ahmed Mehmood Bangee Ahmed Mehmood Bangee 42101-1750319-5 Mahmood Dawood 434 - 690 690 - - - 1,124 434 - 690 690 - - - 1,124 Ahmed Mamoojee Bangee 9/5 Qazi Court Bldg Boulton Market Road Karachi

461 Muhammad Aamir Muhammad Aamir 42401-3263428-5 Muhammad Abdul Rehman 190 - 312 312 - - - 503 190 - 312 312 - - - 503 Khurshid Malik Khurshid Malik Rehman Interpreises Shop No 1410 Chalias Ka Road Sector 8-L Orangi Town Karachi 462 Abdul Sattar Abdul Sattar 42101-1809933-9 Iqrar Hussain 490 - 761 761 - - - 1,251 490 - 761 761 - - - 1,251 Sattar Brothers Plot No C- 6 Ishaqabad Shah Suleman Road Liaquatabad Karachi 463 Hassan Sardar Hassan Sardar 42201-6786905-9 Sardar Ali 495 - 729 729 - - - 1,225 495 - 729 729 - - - 1,225 43-C Scheme 33 Block 1A Gulistan-E-Johar ,Karachi

464 Momen Khan Momen Khan 42201-3515741-5 Mohammad Ghani 223 - 346 346 - - - 569 223 - 346 346 - - - 569 Momen Khan Block And Tile Beam Plot No 7 St /7 Universal Town Korangi No 1-1/2 Pappan Chowk,Karachi 465 Mohammad Saleem Mohammad Saleem 42101-1189824-7 Mohammad Ismail 323 - 518 518 - - - 842 323 - 518 518 - - - 842 H No R-122 Sector 15 A-3 Buffer Zone North Karachi ,Karachi 466 Nain Ul Raza Shabbir Nain Ul Raza Shabbir 42201-2933242-5 Shabbir Ahmed Qazi 433 - 685 685 - - - 1,118 433 - 685 685 - - - 1,118 Mobiles Point,Shop No A-1 Saima Drivein Mob Elec Mall Adj Honda Sh.Room Rashid Minhas Rd Karachi Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

467 Afzal Mehmood Khan Afzal Mehmood Khan 42101-2958411-3 Muhammad Mahmood 504 - 782 782 - - - 1,287 504 - 782 782 - - - 1,287 H No R-421 Sector 14-A Khan Shadman Town North Nazimabad ,Karachi

468 Muhammad Nasir Muhammad Nasir 42401-2630782-5 Abdul Habib 483 - 769 769 - - - 1,252 483 - 769 769 - - - 1,252 H No 63 Sector 6-C Orangi Town Karachi 469 Muhammad Adeel Irshad Muhammad Adeel Irshad 42101-1797703-7 Irshad Ahmed Qureshi 494 - 742 742 - - - 1,236 494 - 742 742 - - - 1,236 Ishaq Brothers Jewellers 5- A-12/17-1 Sarafa Bazar Paposh Nagar, Nazimabad Karachi

470 Malik Muhammad Shakil Malik Muhammad Shakil 35202-5832996-1 448 - 669 669 - - - 1,116 448 - 669 669 - - - 1,116 Plot No-D/17, Shop No-I & 3 Shah Faisal Colony No-1 Eat Karachi 471 Muhammad Ejaz Taimori Muhammad Ejaz Taimori 42201-0450171-9 Bidar Bukht 502 - 779 779 - - - 1,282 502 - 779 779 - - - 1,282 Fl No A-102 Block A Prime Arcade Metrovil 3Rd Blk Gulzar-E-Hijri Karachi

472 Muhammad Saleem Muhammad Saleem 42301-9242268-3 Ghulam Mohammad 329 - 556 556 - - - 885 329 - 556 556 - - - 885 Fl No 9/10 1St Floor Romaan Building Robson Road Burns Road Karachi

473 Mohammad Saleem Mohammad Saleem 42101-3640528-3 Abdul Qadir 355 - 558 558 - - - 913 355 - 558 558 - - - 913 5,C/2 L 399. Bilal Town North Karachi ,Karachi 474 Sikander Ali Khan Sikander Ali Khan 42501-6897696-5 Abdul Ghaffar 418 - 640 640 - - - 1,058 418 - 640 640 - - - 1,058 B 52/1 Malir Khokharapar No 5 ,Karachi

475 Iftikhar Ahmed Baqai Iftikhar Ahmed Baqai 42301-0754508-9 Anzar Ahmed 256 - 398 398 - - - 653 256 - 398 398 - - - 653 House No.106-H,First Floor, Block:2,P.E.C.H.S, Distt.East, Karachi

476 Sohail Muhammad Qureshi Sohail Muhammad Qureshi 42201-2957437-9 Aamer Mohammad Qureshi 473 - 732 732 - - - 1,204 473 - 732 732 - - - 1,204 H No 24 Coustodin Area Old Sabzi Mandi No 2 ,Karachi

477 Mohd Naeem Ud Din Mohd Naeem Ud Din 42101-1704220-7 Ghulam Moinuddin 244 - 390 390 - - - 633 244 - 390 390 - - - 633 Sidque Sidque Naimuddin And Company Suit No 10 Ebrahim Building West Wharf Road Karachi 478 Sheikh Abdul Rehman Sheikh Abdul Rehman 42301-4507311-5 Sheikh Ihsan Ellahi 490 - 741 741 - - - 1,231 490 - 741 741 - - - 1,231 Rehman Traders Off 45 Hemani Center,Bottle Street Shahrah-E- Liaquat,Light House Karachi Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

479 Pervaiz Iqbal Zahid Pervaiz Iqbal Zahid 33100-0945243-9 Abdul Ghani 301 - 464 464 - - - 765 301 - 464 464 - - - 765 14-Shaheed -E-Millat Market Near Millat Chowk Sheikupura Road Faisalabad Faisalabad

480 Waseem Ahmad Waseem Ahmad 33100-3470946-3 Ch Abdul Rasheed 492 - 734 734 - - - 1,225 492 - 734 734 - - - 1,225 H No 181 Block-C Gulberg Colony Faisalabad

481 Muhammad Naeem Muhammad Naeem 33100-8060994-1 Wazir Ali 278 - 568 568 - - - 846 278 - 568 568 - - - 846 Al Madina Oxygen Gas Works Opp Crecent Textile Mills Sargodha Road Faisalabad 482 Muhammad Iftikhar Muhammad Iftikhar 33100-3182124-1 Nayaz Muhammad 447 - 638 638 - - - 1,085 447 - 638 638 - - - 1,085 Sun Gas Distributor P-72-A St No 3 Officer Colony No 2 Faisalabad 483 Imtiaz Ahmad Imtiaz Ahmad 33100-3299091-3 Abdul Majeed 210 - 330 330 - - - 540 210 - 330 330 - - - 540 Abdul Rasheed & Abdul Majeed & Shop No 37 Rehmania Road Old Fruit Vegitable Market Faisalabad 484 Muzifuddin Muhammad Muzifuddin Muhammad 35200-8575195-1 Syed Safir Udine 251 - 392 392 - - - 643 251 - 392 392 - - - 643 Faisal Faisal Warid Telecom Ahmed Arcade Canal Road Abdullah Pur Faisalabad 485 Muhammad Ilyas Muhammad Ilyas 33100-1108397-5 Bashir Ahmad 420 - 619 619 - - - 1,039 420 - 619 619 - - - 1,039 H No P-104 St No 1 Kehkashan Colony No 2 Hassan Park Juranawala Road Faisalabad

486 Abdul Sattar Shahid Abdul Sattar Shahid 35303-6748636-9 Bashir Ahmad Bhatti 297 - 463 463 - - - 760 297 - 463 463 - - - 760 H No P-188 St No 3 Ali Block Haseeb Shaheed Colony Faisalabad 487 Nisar Ahmad Malik Nisar Ahmad Malik 33100-0989432-3 Malik Abdul Haq Kamil 403 - 626 626 - - - 1,029 403 - 626 626 - - - 1,029 Kamil Ahsan Foundaion Secondar H No 309-A Gulberg National Hospital Faisalabad 488 Muhammad Nawaz Muhammad Nawaz 33100-0710411-3 Rashid Ahmad 297 - 449 449 - - - 746 297 - 449 449 - - - 746 H No P-193 St No 11 Ayoub Colony Jhang Road Faisalabad 489 Muhammad Ashiq Muhammad Ashiq 33100-3893874-1 Noor Muhammad 303 - 449 449 - - - 752 303 - 449 449 - - - 752 H No P-18/4 Kothian Wali Gali Partab Nagar Jhang Road Faisalabad 490 Shamim Akhtar Shamim Akhtar 33100-2673525-4 Rana Ali Ahmed 377 - 546 546 - - - 924 377 - 546 546 - - - 924 H No 302/8 St No 8 Nemat Colony No 2 Faisalabad

491 Feryad Ali Feryad Ali 33100-0637264-5 Abdul Rehman 202 - 312 312 - - - 514 202 - 312 312 - - - 514 H No P-423 St No 5/3 Feroz Shah Feroz Shah 224 Munshi Fateh Di Faisalabad Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

492 Muhammad Naveed Muhammad Naveed Razaq 33100-6357979-9 Muhammad Razaq 202 - 307 307 - - - 509 202 - 307 307 - - - 509 Razaq Nabil Jewellers Sh No 1 St No 5 Begum Market Anarkali Bazar Makka Jewellers,Faisalabad 493 Malik Talib Hussain Malik Talib Hussain 33102-4553005-7 Malik Abdul Ghani 303 - 485 485 - - - 788 303 - 485 485 - - - 788 Shama Trading/Ms 7 Group P-1320/21 Block D- A Ghulam Muhammad Abad Faisalabad 494 Sohail Akhter Tipoo Sohail Akhter Tipoo 61101-0295144-9 Akhter Baig 215 - 335 335 - - - 549 215 - 335 335 - - - 549 Carbon Cube Technologies Suite No.20,Ist Floor,Capital Plaza,Behind Pso Gas Station Markaz G-11, Islamabad 495 Nasir Hussain Nasir Hussain 61101-4083051-1 Sheikh Tassaduq Hussain 192 - 406 406 - - - 598 192 - 406 406 - - - 598 E-Mart Shop G- 05,Panorama Cent Double Rd,Cricket Stadium Rawalpindi 496 Muhammad Ilyas Sheikh Muhammad Ilyas Sheikh 61101-5058257-7 Sheikh Abdul Latif 482 - 677 677 - - - 1,159 482 - 677 677 - - - 1,159 Latif Medical Centre Trade Centre F-11 Markaz Islamabad 497 Ausaf Manzoor Ausaf Manzoor 61101-2780889-7 Khawaja Ahmed Manzoor 203 - 316 316 - - - 519 203 - 316 316 - - - 519 Member Co Ordination Overseas Wing National Bureau Ata Turk Avenue G- 5/2 Islamabad

498 Malik Zulfiqar Ahmed Malik Zulfiqar Ahmed 61101-5487395-5 Malik Mir Mohammad 270 - 403 403 - - - 673 270 - 403 403 - - - 673 Rawalpindi College Of Commerce Off No F-746 Satellite Town Rawalpindi

499 Shafqat Ullah Malik Shafqat Ullah Malik 61101-0645804-3 Faqir M Malik 416 - 626 626 - - - 1,042 416 - 626 626 - - - 1,042 Flat No 2-B Bazar No 11 I- 10/4 Near Javed Market Islamabad 500 Raja Fazal Hussain Raja Fazal Hussain 61101-8323776-3 Raja Muhammad Ameer 414 - 644 644 - - - 1,058 414 - 644 644 - - - 1,058 Cave Off No 1-B Awan Arcade Jinnah Avenue Blue Area ,Islamabad 501 Sajad Ali Pirzado Sajad Ali Pirzado 43203-4117885-9 Ali Muhammad Pirzado 256 - 411 411 - - - 668 256 - 411 411 - - - 668 Ali Movies Video Market Resham Gali ,Larkana 502 Imranullah Imranullah 43203-9417865-7 Abdullah Abro 493 - 742 742 - - - 1,236 493 - 742 742 - - - 1,236 Imran Paint House Bank Al Falah Bander Road ,Larkana 503 Abdul Khalique Qureshi Abdul Khalique Qureshi 41306-1111377-7 Qamar Uddin Qureshi 502 - 753 753 - - - 1,255 502 - 753 753 - - - 1,255 Banglow No 1 Street No 1 Srtc Colony Thandi Sarak Hyderabad

504 Muhammad Shakir Muhammad Shakir 41303-4277041-9 Islam Uddin 486 - 744 744 - - - 1,230 486 - 744 744 - - - 1,230 Variety Shoes Store Shop 2581 Seright Road Hyderabad Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

505 Husnain Raza Sayni Husnain Raza Sayni 41303-2173976-9 Ameer Ali 204 - 313 313 - - - 517 204 - 313 313 - - - 517 New Hussaini Furnitures Shop 15/A Ground Floor Al Amna Complex Alamgir Road Hyderabad

506 Rafaquat Ali Asghar Ali Rafaquat Ali 41303-2342569-9 Shafquat Ali 394 - 621 621 - - - 1,015 394 - 621 621 - - - 1,015 M/S Faizan-E-Fareed Cloth Asghar Ali Stor Shop 181-182 Azeem Us Shan New Cloth Market ,Hyderabad

507 Imtiaz Hussain Tunio Imtiaz Hussain Tunio 41306-0862873-3 Sahib Dino 292 - 449 449 - - - 741 292 - 449 449 - - - 741 Imtiaz Hussain And Imtiaz Hussain Tunio Brothers Ge Shop No 1 Ali Palace Road Qasimabad ,Hyderabad 508 Ilamud Din Keerio Ilamud Din Keerio 45205-4950879-1 Muhammad Wazir Keerio 474 - 715 715 - - - 1,188 474 - 715 715 - - - 1,188 Faisal Builders Shop No B- 28 Ground Floor Gmb Colony Qasimabad Mary Land Hosp,Hyderabad

509 Imran Ali Imran Ali 44203-9391107-1 Ghulam Qadir 219 - 335 335 - - - 554 219 - 335 335 - - - 554 Contact Plus Dept Marketing Banglow No A/45 Unit No 3 Latifabad Hyderabad 510 Muhammad Pervaiz Muhammad Pervaiz 38403-8568180-9 Allah Ditta 196 - 304 304 - - - 500 196 - 304 304 - - - 500 H No 271 St No 3 Masjid Sadiq Akbar Muqaam E Hayat Sargodha 511 Muhammad Imran Khan Muhammad Imran Khan 38403-2064240-5 Abdul Rauf Khan 292 - 453 453 - - - 745 292 - 453 453 - - - 745 H No 15/7, Block Z Iqbal Colony Sargodha 512 Sabir Ali Sabir Ali 38403-9928925-7 Rao Nasir Ali 203 - 301 301 - - - 505 203 - 301 301 - - - 505 Info Tech Systems Services 91-Ground Flr Trust Plaza Sharja Mobile ,Sargodha 513 Muhammad Nadeem Muhammad Nadeem 35201-1443768-7 Munawar Hussain Shahzad 287 - 432 432 - - - 719 287 - 432 432 - - - 719 Shahzad Bhatti Shahzad Bhatti Iqra Traders Chowk Block No 20 Nr Younis Tika Shop ,Sargodha 514 Babar Zulfiqar Babar Zulfiqar 38403-2221053-3 Zulfiqar Ali 223 - 330 330 - - - 553 223 - 330 330 - - - 553 H No 229 Gali No 4 Gulshan Hayat Colony Near Civil Hospital Sargodha 515 Yasir Adeel Yasir Adeel 38403-2237390-3 Shaikh Majeed Ahmed 233 - 368 368 - - - 601 233 - 368 368 - - - 601 91 Near Road Grain Market Sargodha 516 Muhammad Hafeez Ur Muhammad Hafeez Ur 38401-0305966-9 Mehboob Ahmad 297 - 440 440 - - - 736 297 - 440 440 - - - 736 Rehman Rehman New Malik Medical Store Block 1 Post Office Road Tma Chowk,Sargodha Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial Statements Details of loans write offs of Rs. 500,000 and above Rs. in '000 At the beginning Written off

Name of individuals / Interest / Interest / Interest / Interest / Interest / Interest / Others Others Others Others Others Others S.No. Name and Address partners / proprietors / CNIC Number Father / Husband Name Principal Markup Markup Markup Total Principal Markup Markup Markup Total (Debited) (Undebited) (Total) (Debited) (Undebited) (Total) directors (Debited) (Undebited) (Total) (Debited) (Undebited) (Total)

517 Muhammad Waqas Shafi Muhammad Waqas Shafi 38403-4143244-7 Muhammad Shafi 199 - 303 303 - - - 502 199 - 303 303 - - - 502 H No 100,St No 3 Canal Park Sarogodha

518 Asim Shehzad Asim Shehzad 37201-1787246-3 Manzoor Hussain 502 46 - 46 34 - 34 583 502 46 - 46 34 - 34 583 Chak Umra Post Office Khas Chakwal 519 Siddique Aslam Siddique Aslam 35202-6097017-5 Mohammad Aslam Gondal 439 61 - 61 16 - 16 516 439 61 - 61 16 - 16 516 Building # 13-C, Street # 3 2Nd Floor Small Bhukhari Commercial Dha Phase Vi

520 Sh M Shafi Sh M Shafi 35202-1783443-5 Abdul Ghani 484 57 - 57 13 - 13 554 484 57 - 57 13 - 13 554 5 Canal Park Gulberg Ii 521 Ali Raza Cheema Ali Raza Cheema 33100-3794977-7 Shukat Ali Chima 509 68 - 68 24 - 24 601 509 68 - 68 24 - 24 601 H No P 275 Main Road Sarfraz Colony 522 Nasim Ahmed Nasim Ahmed 42301-2904036-5 Manzoor Ul Haq 486 59 - 59 18 - 18 562 486 59 - 59 18 - 18 562 H No 41-A/2 11Th Street Phase 2 Dha South

523 Tauqir Hussain Tauqir Hussain 35201-1494766-5 M Hussain Shah 455 46 - 46 12 - 12 513 455 46 - 46 12 - 12 513 H No 334 Block X Dha - Total 3,443,256 1,083,905 910,572 1,994,477 116 - 116 5,437,849 1,901,454 1,207,806 906,044 2,113,850 116 1,419 1,535 4,016,838 Annexure 'C' As Referred to in Note 11.7 of Unconsolidated Financial Statements

Disposals of operating fixed assets during the year 2016

Cost Accumulated Book Sale Mode of Particulars of Buyers depreciation value proceeds disposal

------(Rupees in '000)------Items having book value of more than Rs. 250,000 or cost of more than Rs. 1,000,000

Land & Building Freehold Land Saleh Muhammad Street Branch, Karachi 27,357 - 27,357 29,000 Auction Afzal Habib Rampart Raow, Karachi 9,568 - 9,568 10,500 Auction Muhammad Asif Zai 36,925 - 36,925 39,500 Vehicles Mercedes Benz CGI 8,713 7,841 872 1,743 Buy Back Aameer Karachiwalla - Employee Mercedes Benz CGI 8,766 7,889 877 1,753 Buy Back Muhammad Ejazuddin - Employee Mercedes Benz CGI 8,731 7,857 874 1,746 Buy Back Aqeel Ahmed Nasir - Employee Honda Accord 2,800 2,520 280 1,038 Auction Nusrat Iqbal #### Toyota Corolla 1,014 913 101 903 Auction Saeed Ur Rehman #### Toyota Corolla 1,014 913 101 927 Auction Nusrat Iqbal #### Toyota Corolla 1,014 913 101 910 Auction Nusrat Iqbal #### Toyota Corolla 1,014 913 101 922 Auction Nusrat Iqbal #### Toyota Corolla 1,014 913 101 922 Auction Nusrat Iqbal #### Toyota Corolla 1,309 1,178 131 706 Auction Sultan Hassan Khan #### Toyota Corolla 1,014 913 101 918 Auction Nusrat Iqbal #### Toyota Corolla 1,014 913 101 880 Auction Said Faqir #### Toyota Corolla 1,014 913 101 933 Auction Nusrat Iqbal #### Toyota Corolla 1,014 913 101 943 Auction Nusrat Iqbal #### Honda Civic 1,043 939 104 770 Auction Zahid Qadri #### Toyota Corolla 1,014 913 101 925 Auction Nusrat Iqbal #### Toyota Corolla 1,389 1,250 139 978 Auction Nusrat Iqbal #### Toyota Corolla 1,389 1,250 139 1,015 Auction Khalid Anwar #### Toyota Corolla 1,389 1,250 139 964 Auction Nusrat Iqbal #### Toyota Corolla 1,411 1,270 141 939 Auction Muhammad Nasir Khan #### Toyota Corolla 1,389 1,250 139 887 Auction Nusrat Iqbal #### Toyota Corolla 1,389 1,250 139 964 Auction Nusrat Iqbal #### Toyota Corolla 1,389 1,250 139 1,021 Auction Khalid Anwar #### Toyota Corolla 1,324 1,192 132 1,013 Auction Sultan Zaib #### Toyota Corolla 1,389 1,250 139 974 Auction Nusrat Iqbal #### Suzuki Jimmy 1,857 1,857 - 978 Auction Muhammad Siddiuqe #### Toyota Corolla 1,389 1,250 139 938 Auction Nusrat Iqbal 57,206 51,673 5,533 27,610

Electrical, office and computer equipment Atm Machine 1,014 1,014 - 104 Auction Innovative Pvt Ltd Atm Machine 1,014 1,014 - 104 Auction Innovative Pvt Ltd Atm Machine 1,014 1,014 - 106 Auction Innovative Pvt Ltd Atm Machine 1,014 1,014 - 106 Auction Innovative Pvt Ltd Atm Machine 1,014 1,014 - 106 Auction Innovative Pvt Ltd Atm Machine 1,014 1,014 - 104 Auction Innovative Pvt Ltd Atm Machine 1,014 1,014 - 104 Auction Innovative Pvt Ltd Atm Machine 1,014 1,014 - 104 Auction Innovative Pvt Ltd Atm Machine 1,014 1,014 - 104 Auction Innovative Pvt Ltd Atm Machine 892 260 632 104 Auction Innovative Pvt Ltd Generator 2,151 2,151 - 523 Auction Alhaj Global 12,169 11,537 632 1,569

Items having book value of less than Rs. 250,000 and cost of less than Rs. 1,000,000 Others 90,185 86,345 3,840 22,524 Total 196,485 149,555 46,930 91,203