TheAcross countless Art artists andof through Values the passage of hundreds of years, the art of Calligraphy has been respected and revered, particularly in Muslim cultures. The aesthetic principles of Arabic calligraphy are seen as a reflection of the beauty of the cultural values of the Muslim world. A closer look at calligraphy reveals that through the representation of words or sentences in an aesthetically appealing manner, the importance of the subject matter is enhanced. This effect that calligraphy has on words is a corollary to the way Meezan Bank holds true to its Core Values. While words such as Professionalism and Integrity may seem common- place and basic, they hold paramount significance for us because of the ideology behind each word and the manner in which it defines the culture and personality of Meezan Bank. Our focus on our Core Values enhances their importance for us in the same way as calligraphy enhances the importance of its subject matter - and that is why we have chosen to combine the two in a beautiful expression of everything that Meezan Bank stands for. Beginning with the word 'Meezan', which means 'balance', this Annual Report presents our core values to you in Arabic calligraphy and also defines our understanding of these principles. ContentsVision 04 Mission 04 Our Values 06 Quaid’s Concept of Islamic Banking 09 Key Figures at a Glance 22 The Year in Review Chairman’s Review 54 Six Years’ Horizontal Analysis 24 Directors’ Report to the Members 56 Six Years’ Vertical Analysis 25 Annexure to the Directors’ Report 62 Financial Analysis 26 Statement of Value Added and Distributed 63 Calendar of Major Events 28 Allocation of Income and Expenses to Shareholders 29 Remunerative Depositors’ Pool 64 Our Institution Business and Operations Review 66 Corporate Profile 32 Marketing & Corporate Communication 84 Credit Rating 32 Corporate Social Responsibility 85 Corporate Awards 33 Sustainability Report 87 History of Meezan Bank 34 Report of the Board Audit Committee 91 Profiles of the Directors 38 Shariah Advisor’s Report 92 Corporate Information 40 Shariah Advisor’s Report (Urdu) 98 Board Committees 41 Statement of Sources and Uses of Charity Fund 99 Organization Structure 42 Statement of Inventory 99 Management Team 43 Review Report to the Members 100 Management Committees 44 Statement of Compliance with the 101 SWOT Analysis 46 Code of Corporate Governance Risk & Opportunity Report 47 Statement of Internal Controls 103 Product Information 48 Notice of Annual General Meeting 104 Additional Information Pattern of Shareholding 184 Categories of Shareholders 185 Standard of Ethics, Business Practices & Financial Statements 186 Auditors’ Report to the Members 108 Code of Conduct Statement of Financial Position 109 Guidelines on Whistle-blowing 188 Profit and Loss Account 110 Summary of Information Security Policy 189 Statement of Comprehensive Income 111 Guidelines for Safety of Records of the Company 189 Cash Flow Statement 112 Correspondent Banking Network 190 Statement of Changes in Equity 113 Branch Network 195 Notes to and forming part of the Glossary 204 114 Financial Statements Proxy Form 207 VisionEstablish Islamic banking as banking of first choice... MissionTo be a premier Islamic bank, offering a one-stop shop for innovative value-added products and services to our customers within the bounds of Shariah... Our Values : Shariah-compliance, Integrity, Professionalism, Innovation, Core Values Service Excellence, Social Responsibility. : Committed, motivated and professionally trained employees Staff who are empathic to their customers’ needs. : A sober and established, strong, empathic, Brand Personality professional person; who is an extremely loyal and dependable friend and business partner, and is committed to offering comprehensive value-based Shariah-compliant financial solutions. : Our relationships are long-term. We recognize and Relationships value our customers’ needs above all and strive to ensure their fulfillment. All customers are treated with professionalism and in a friendly manner. It is our endeavour to ensure that they receive efficient and timely service. The Meezan Bank experience is a unique one. Quaid’s Concept of Islamic Banking “I shall watch with keenness the work of your Research Organization in evolving banking practices compatible with Islamic ideas of social and economic life. The economic system of the West has created almost insoluble problems for humanity and to many of us it appears that only a miracle can save it from disaster that is now facing the world. It has failed to do justice between man and man to eradicate friction from the international field. On the contrary, it was largely responsible for the two world wars in the last half century. The Western world, in spite of its advantages of mechanisation and industrial efficiency is today in a worse mess than ever before in history. The adoption of Western economic theory and practice will not help us in achieving our goal of creating a happy and contended people. We must work our destiny in our own way and present to the world an economic system based on true Islamic concept of equality of manhood and social justice. We will thereby be fulfilling our mission as Muslims and giving to humanity the message of peace which alone can save it and secure the welfare, happiness and prosperity of mankind.” Quaid-e-Azam Mohammad Ali Jinnah Founder of the Islamic Republic of Pakistan On the occasion of the Opening Ceremony of The State Bank of Pakistan on July 1, 1948. Shariah Compliance The root word of is (wafq) which means 'according to'. means conformity and accordance with Shariah. Shariah-compliance is the core value which defines the very existence of Meezan Bank. Since its very inception, the Bank has had an aim that is unified across all branches, all business units and all services: absolute and unwavering adherence to the principles of Shariah! It is this commitment that has enabled us to achieve the remarkable successes that Meezan Bank is known for, Alhamdulillah. With a team of the most capable and renowned Shariah scholars comprising our Shariah Board, we are able to not just deliver a Riba-free banking experience to our customers, but also develop new and innovative banking products that are designed to delight our customers, whilst addressing their needs - all the while staying within the bounds of Shariah. Integrity means honesty and truth. It also means integrity and reliability. The single most important quality one can ever develop is integrity. Having integrity means being totally honest and truthful in every element of your existence. Integrity is the foundation of one's character and is manifested in one's adherence to the values that one believes in. Only the people or organizations that show integrity can gain the trust of and become role models for others. It is for this reason that at Meezan Bank, integrity is valued so highly - not just in terms of following the dictates of Shariah under all circumstances, but also in all our dealings and transactions with our partners, our customers and our stakeholders. As a core value, integrity ensures unwavering faith in an institution. Professionalism means professionalism or to adopt a profession. It is our firm belief that as the Premier Islamic bank, it is our absolute professionalism which gives us an edge in our industry. Our stakeholders want to see a bank that supports its customers whilst doing business responsibly. Our customers want to see a bank that looks after their interests while maintaining its integrity. Individuals and businesses look to us for advice, counting on us to guide them in the correct direction. At the center of all of these expectations is the professionalism that augments our competence. The more professional we are, the closer we get to our Vision. Innovation The original meaning of is ‘to create from nothing'; it is also used for innovation. Innovation lies at the heart of all human development. It entails constant nurturing of the commitment to evolve and improve with changing times and ensuring that the products and services being provided by an organization live up to the dynamic expectations of its customers. Innovation comes from not just storing knowledge, but creating it. Being the first Islamic bank of Pakistan, innovation is a key core value for Meezan Bank. Being at the helm of Islamic banking in Pakistan and constantly developing new products and services for its customers, Meezan Bank continuously works towards the preservation of this value. Service Excellence The word is derived from husn ( ) which means beauty. means betterment and enhancement. Excellence is what differentiates one from his peers. When an organization as a whole aims for excellence, its performance differentiates it from its industry. Being part of a service industry, financial institutions around the world offer similar products, competing with each other on the basis of the experience delivered to their customers. At Meezan Bank, we harbor an unwavering determination to excel in customer satisfaction and with Service Excellence as a core value, we imbibe this determination in every member of the Meezan family. Social Responsibility The root word of is which means to ask or demand. means collective and social responsibility, burden and liability. Perhaps the most important core value in terms of society, social responsibility is an obligation of any entity to the landscape in which it exists. For us at Meezan Bank, social responsibility goes beyond the act of giving back to the society. Adopting social responsibility as a core value means truly developing our business in a manner that is not just compliant with the needs of society but also ensures that no harm comes to society as a result of our business decisions. As an Islamic bank, the very act of our existence aims to benefit the people at large by enabling them to have a Shariah-compliant means of transacting their banking needs.