Annual Report 2021

MERA
PAIGHAM
PAKISTA
ANNUAL REPORT 2021
2
CELEBRATING THE JOUR
As one of Pakistan's leading and most trusted financial institutions, MCB Bank shares a unique bond with Pakistan that ca
75 years ago, when both came into existence in the same year. MCB Bank and Pakistan have filled the pages of history to
journey of growth and pro
be
About the Report

Adoption and Statement of Adherence with the International Integ
Reporting Framework
In the course of its operations a commercial organization receives various inputs and converts them into value for itself and its stakeholders. This v
over different time frames; short, medium and long. An integrated report describes this value creation process concisely including the business mod
governance, processes, risks and opportunities.
Since MCB is one of the largest Commercial Bank and plays a vital role in the economy of the country. It also makes its presence felt at the grassro
sprawling network of branches and its wide customer base. Therefore, it has an impact far beyond the bottom line. Being the Bank with one of the l
it is imperative; therefore, that the Bank reassures its stakeholders that it is safeguarding the public interest.
Adoption of International Integrated Reporting Framework depends on the individual circumstances of an entity. The Bank has adopted the Integra
Framework to give an overview of Bank’s philosophy to explain connection between its financial and non-financial information, which would
understanding as to how the Bank is working to improve its performance keeping in view the stakeholder’s interests. The business strategy info
directly to business activities and non-financial information, and provides explanations accordingly.
Integrated framework is still considered to be a practice in its early stages. We will continue to improve the information
produced to make it even easier to understand, while taking into account the opinion of stakeholders reading this report.
Scope and Boundary of Reporting

Boundary Contents
Integrated Reporting boundary • Organizational Overview
• Performance & Position
• Strategic & Resource Allocation

• Risk and Opportunities
• Corporate Governance
• Sustainability & Corporate Social Responsibility
• Stakeholders Relationship & Engagement
• Excellence in Corporate Reporting
Financial Reporting Boundary • Unconsolidated financial statements
• Consolidated Financial Statements
Reporting Period
The Bank’s Annual Report 2021 covers the 12-month period from January 01, 2021 to December 31, 2021 and is consistent with our u
reporting cycle for financial and integrated reporting. Material events, if any, after this date and up to the board approval date of 10th Februa
been included. The most recent previous report was dated December 31, 2020.
External Assurance
Independent External Auditors, Messrs A.F. Ferguson & Co have assured the MCB Bank Financial Statements. As
required by the regulators, these Auditors are rotated every five years to ensure their independence and objectivity.
Key Concepts
• Materiality and material matters
The Bank applies the principle of materiality in assessing what information should be included in its integrated report. This report therefo
particularly on those issues, opportunities and challenges that impact materially on MCB and its ability to be a sustainable business that c
value to shareholders and key stakeholders.
Identifying our potential material matters is a bank wide responsibility and requires input from all business units and
divisions and an assessment of the risks and opportunities in our operating environment.
• Our CAPITALs
Our relevance as a bank today and in the future and our ability to create long-term value are interrelated and fund
dependent on the forms of capital available to us (inputs), how we use them (value-adding activities), our impact on them and th
(outputs and outcomes)
o Financial o Manufactured
o Intellectual o Social and relationships
o Human o Natural
CONTACTFor further clarification and feedback on this report, please contact vide email: investor.relations@mcb.com.pk
Vision, Mission & Values

08. Vision
08. Mission
11. Strategic Objectives
22. Core Values
24. Awards
Organizational Overview
26. Products and Services
42. Corporate Information
44. Board of Directors
45. Profile of the Board of Directors
55. Organizational Structure
56. Leadership Team
58. Other Senior Management
60. Entity Credit Rating
61. Corporate Profile of the Bank
63. Chairman’s Review
65. President’s Review
67. MCB Overview
68. Highlights 2021
69. Financial Performance 2011 - 2021
70. Forward Looking Statement
76. Graphical Presentation of Financial Statements
77. Maturities of Assets and Liabilities
77. Key Interest Bearing Assets and Liabilities
78. Analyses of Financial Performance
80. Analyses of Non-Financial Performance
82. Non-Performing Loans
83. Non-Performing Assets
84. Deposits & Advances - Sector Wise
85. Deposits & Advances - Group Wise
86. Investments
87. Capital Structure
88. Quarterly Performance - 2021 & 2020
89. Quarterly Performance Analysis - 2021 &
2020
90. Six Years’ - Financial Performance / Financial Ratios 2016 - 20
92. Six Years’ - Non-Financial Performance 2016
- 2021
93. Six Years’ - Performance Commentary
96. Six Years’ - Graphical Summary of Ratios
97. Six Years’ - Concentration of Advances, NPLs and Off Balance
98. Six Years’ - Maturities of Assets & Liabilities
99. DuPont Analysis
100. Summary of Cash Flows
100. Free Cash Flows
101. Cash Flow Statement Direct Method
102. Markup & Non Markup Income
103. Operating Expenses
104. Economic Value Added Statement
Performance, Position & Outlook

TING THE JOURNEY
ank shares a unique bond with Pakistan that can be traced back
and Pakistan have filled the pages of history together through a
journey of growth and prosperity - and the
best is yet to come.
with the International Integrated

nverts them into value for itself and its stakeholders. This value creation can be
value creation process concisely including the business model, strategies,
of the country. It also makes its presence felt at the grassroots level with its
ar beyond the bottom line. Being the Bank with one of the largest customer base
the public interest.
rcumstances of an entity. The Bank has adopted the Integrated Reporting

s financial and non-financial information, which would enhance the user’s
view the stakeholder’s interests. The business strategy information is linked
ations accordingly.
inue to improve the information

stakeholders reading this report.
Scope
• Integrated reporting framework
• Banking Companies Ordinance
1962
• Companies Act,2017
• Listed Companies (code of
corporate governance) Regulations,
2019.
• International Financial Reporting

Standards
• Banking Companies Ordinance
1962
• Companies Act, 2017
• Directives issued by SBP & SECP
021 to December 31, 2021 and is consistent with our usual annual
r this date and up to the board approval date of 10th February, 2022 have also
CB Bank Financial Statements. As

their independence and objectivity.
hould be included in its integrated report. This report therefore focuses

ly on MCB and its ability to be a sustainable business that consistently delivers
d requires input from all business units and

g environment.
to create long-term value are interrelated and fundamentally
them (value-adding activities), our impact on them and the value we deliver
e contact vide email: investor.relations@mcb.com.pk
ctives
Services
rmation
tors
Board of Directors
l Structure
am
Management
Rating
file of the Bank
eview
eview
w
1
ormance 2011 - 2021
ng Statement
sentation of Financial Statements
ssets and Liabilities
earing Assets and Liabilities
nancial Performance
on-Financial Performance
ng Loans
ng Assets
vances - Sector Wise
vances - Group Wise
ure
ormance - 2021 & 2020
ormance Analysis - 2021 &
nancial Performance / Financial Ratios 2016 - 2021

on-Financial Performance 2016
erformance Commentary
raphical Summary of Ratios
oncentration of Advances, NPLs and Off Balance Sheet Items
aturities of Assets & Liabilities
sis
ash Flows
ws
atement Direct Method
Markup Income
penses
ue Added Statement
214 Investor Relation Section on Corporate
Website
214 Steps to Encourage Minority Shareholders
Participation in AGM
214 Stakeholder Engagement Policy &
Summary of Analyst Briefing

215 Issues Raised in Last AGM
216 Statement of Value Added

217 Code of Conduct
221 Statement on Internal Controls
222 Statement of Compliance with the Code of
Corporate Governance
225 Review Report to the Members on
Statement of Compliance with the Code of

226 Corporate Governance
Report of the Audit Committee
Unconsolidated Financial Statements

230 Auditors’ Report to the Members
234 Statement of Financial Position
235 Profit and Loss Account
236 Statement of Comprehensive Income
237 Statement of Changes in Equity
238 Cash Flow Statement
239 Notes to the Unconsolidated Financial
Statements
315 Annexures
Consolidated Financial Statements

104 Capital Expenditure
105 Six Years’ - Vertical Analysis
106 Six Years’ - Horizontal Analysis
107 Commentary on Six Years’ Horizontal &
Vertical Analysis
109 Segment Analysis
110 Product Revenue Analysis
111 Statement of Charity and Donation
112 Market Statistics of MCB’s Share
113 Share Price Sensitivity Analysis
114 Other Information
116 BCR Criteria Mapping
124 MCB Calendar of Major Events during
2021
125 Historical Major Events
Strategic & Resource Allocation
126. Strategic Objectives
127. Strategies in Place
127. Methods and Assumptions in Compiling Indicators
127. Change in Indicators & Performance
Measures
129. Resource Allocation Plan
133. Business Model
134. SWOT Analysis
135. Value Chain
136. Comparative Landscape and Market
Positioning
137. Risk Management Framework 336. Directors’ Report on Consolidated Financi
140. Risk and Opportunity Report 338. Auditors’ Report to the Members
147. Directors Report 342. Consolidated Statement of Financial
155. Groups Review Position
167. Board Composition 343. Consolidated Profit and Loss Account
171. Board Committees 344. Consolidated Statement of Comprehensiv
176. Management Committee 345. Consolidated Statement of Changes in Eq
188. Pandemic Recovery Plan by the Management and Policy 346. Consolidated Cash Flow Statement
Statement 347. Notes to the Consolidated Financial State
189. IT Governance 428. Annexures
190. Profile of Shari’ah Advisor Board 441. Branch Network
191. Role Shari’ah Advisor Board 444. Pattern of Shareholding
192. Report of Shari’ah Board - English 444. Categories of Shareholders
197. Report of Shari’ah Board - Urdu 448. Notice of 74th Annual General Meeting
198. Sustainability & Corporate Social Responsibility 453. Glossary of Terms
209. Certifications Acquired and International Standards 457. Form of Proxy
Adopted Investors’ Awareness
210. Green Banking Initiative
212. Stakeholders Identification, Engagement Process and
Frequency
Risk and Opportunities

Directors Report & Groups Review
Corporate Governance & Stakeholders
Engagement
Other Information
Vision
To be the leading financial services provider, partnering with our customers for a more prosperous and secure future
Mission
We are a team of committed professionals, providing innovative and efficient financial solutions to create and nurtur
relationships with our customers. In doing so, we ensure that our shareholders can invest with confidence in us.
STRATEGIC OBJECTIVES
Delivering remarkable returns to stakeholders, sustainable performance, exceeding market and shareholde
Providing value added services through operational expansion, geography and

upgraded system.
Building a corporate culture of equality, trust and team spirit as we remain
dedicated to being a socially responsible organization.
CELEBRATING VI
MCB Bank has a progressive vision that looks to the future of banking, recognizing the technological revolution in the worl
are proud to be a proponent of digital transformation in the Pakistani banking industry, leading the upgrade to the digital er
providin
with a cutting-edge d
CELEBRATING PROSPERITY
As we approach the milestone of 75 years of excellence, our history tells the story of our success as evident from th
awards and accolades we’ve received over the years for our financial performance in Pakistan. Coupled with a grow
branches and increasing deposits and accounts, our shining performance is a testament to how far we have truly co
CELEBRATING INCLUSI
MCB Bank strives to be inclusive to all, following a no-discrimination policy and extending the same care and devotion t
and employee irrespective of gender, caste or creed. We cherish the diversity of our customers and employees, celebra
different backgrounds to create an environment where all individuals are
CELEBRATING
PEACE & HARMONY
As the heart of the South Asian Subcontinent, Pakistan is home to a rich and diverse population with roots that go b
thousands of years. MCB Bank has always endeavored to foster peace and harmony by working together for the be
our society and our country and unifying a single brotherhood under the flag of Pakistan.
CELEBRATING PARTNERS
A fundamental belief imbued in the philosophy of MCB Bank is the strength of partnerships. Over the years, we have
relationships and forged new alliances to create a network of successful partnerships. From partnerships to facilitate nati
CSR programs for creating social impact, and collaborations with national and international organizations to p
opportunities to customers, our n
Core Values
Integrity
We are the trustees of public funds and serve our community with integrity. We believe in being the best at always d
thing. We deliver on our responsibilities and commitments to our customers as well as our colleagues.
Innovation
We encourage and reward people who challenge the status quo and think beyond the boundaries of the conventiona
work together for the smooth and efficient implementation of ideas and initiatives.
Excellence
We take personal responsibility for our role as leaders in the pursuit of excellence. We are a performance driven, res
organization where merit is the only criterion for reward.
Customer Centricity
Our customers are at the heart of everything we do. We thrive on the challenge of understanding their needs and as
realized and unrealized. We make every effort to exceed customer expectations through superior services and solut
Respect
We respect our customers’ values, beliefs, culture and history. We value the equality of gender and diversity of expe
education that our employees bring with them. We create an environment where each individual is enabled to succe
s’ Report on Consolidated Financial Statements
’ Report to the Members
dated Statement of Financial
dated Profit and Loss Account

dated Statement of Comprehensive Income
dated Statement of Changes in Equity
dated Cash Flow Statement
the Consolidated Financial Statements
es
Network
of Shareholding
ies of Shareholders
f 74th Annual General Meeting
y of Terms
Proxy
reness
ore prosperous and secure future.
ial solutions to create and nurture long-term

invest with confidence in us.
ES
ceeding market and shareholder expectations.
and
RATING VISION
chnological revolution in the world around us. We
ding the upgrade to the digital era of banking and
providing our customers
with a cutting-edge digital experience.
RITY
f our success as evident from the numerous
n Pakistan. Coupled with a growing network of
ment to how far we have truly come.
15
G INCLUSIVITY
ng the same care and devotion to each customer
stomers and employees, celebrating people from
ronment where all individuals are valued equally.
e population with roots that go back over

ny by working together for the betterment of
stan.
ARTNERSHIPS
ships. Over the years, we have nurtured existing
om partnerships to facilitate national progress, to
d international organizations to provide exclusive
pportunities to customers, our network continues
to grow stronger
eve in being the best at always doing the right

as our colleagues.
he boundaries of the conventional. Our teams
We are a performance driven, result oriented
nderstanding their needs and aspirations, both

ough superior services and solutions.
y of gender and diversity of experience and

ch individual is enabled to succeed.
Awards
2021 Asset AAA Sustainable Capital Markets Country
2021 Asset AAA Sustainable Capital Markets Country 2021 Asset AAA Sustainable
Capital Markets Country 2021 FinanceAsia’s Country Awards
2021 ICAP and ICMAP
2021 ICAP and ICMAP
2021 SAFA Awards
2020 ABF Corporate & Investment Banking Awards 2020 ABF Corporate &
Investment Banking Awards 2020 Asset AAA Infrastructure Awards
2020 Asset AAA Islamic Finance Awards 2020 Asset AAA Islamic Finance Awards
2020 Asset AAA Islamic Finance Awards 2020 Asiamoney Awards
2020 Asiamoney Awards
2020 ICAP and ICMAP
2020 SAFA Awards
2019 Asset Triple A Infrastructure Awards 2019 Asset Triple A Infrastructure Awards
2019 Asian Banking & Finance Corporate & Investment Banking Awards 2019 Asian
Banking & Finance Corporate & Investment Banking Awards 2019 Asiamoney
2019 FinanceAsia
2019 ICAP and ICMAP
2019 SAFA Awards
2018 Asset Triple A Islamic Finance Awards 2018 Asset Triple A Infrastructure
Awards 2018 Asset Triple A Infrastructure Awards
2018 Asset Triple A Infrastructure Awards 2018 Asset Triple A Infrastructure Awards
2018 Asiamoney Best Bank Awards
2018 FinanceAsia Country Awards for Achievement 2018 ICAP & ICMAP
2017 Euromoney Awards 2017 ICAP and ICMAP
2017 Assets AAA Islamic Finance Awards 2017 Assets AAA Infrastructure Awards
2017 Assets AAA Infrastructure Awards 2017 Assets AAA Infrastructure Awards
2017 Asiamoney Silk Road Finance Awards 2017 Asiamoney Silk Road Finance
Awards 2017 Asian Banker Awards
2017 FinanceAsia Achievement Awards 2017 Assets AAA Country Awards 2017
CFA 14th Excellence Awards 2017 SAFA Awards
2017 SAFA Awards
2016 Euromoney Awards
2016 1st Pakistan Banking Awards 2016 Finance Asia Country Awards 2016 ICAP and
ICMAP
2016 First Global Awards
2016 Assets AAA Country Awards 2016 SAFA Awards
2016 SAFA Awards
2015 CFA 12th Excellence Awards 2015 Finance Asia Country Awards 2015 ICAP
and ICMAP
2015 SAFA Awards
2014 The Asset Triple A 2014 The Asset Triple A
2014 CFA 11th Excellence Awards 2014 CFA 11th Excellence Awards 2014
Asiamoney Awards
2014 The Asian Banker (USA)
2014 ICAP and ICMAP
2014 SAFA Awards
2013 The Asset Triple A 2013 The Asset Triple A 2013 ICAP and ICMAP
2013 LK Domain Registry Sri Lanka 2013 Lanka Clear Pvt. Limited 2013 SAFA
Awards
2014 The Asian Banker (USA)
2014 ICAP and ICMAP
2014 SAFA Awards
2013 The Asset Triple A 2013 The Asset Triple A 2013 ICAP and ICMAP
2013 LK Domain Registry Sri Lanka 2013 Lanka Clear Pvt. Limited 2013 SAFA
Awards
2012 The Asset Triple A Best Domestic Bank - Pakistan

2012 Euromoney Best Bank in Pakistan
2012 NFEH CSR Business Excellence Award “Best Media Coverage” 2nd Best Corporate Report Award 2011 - B
2012 ICAP and ICMAP Commercial Bank - Pakistan
2012 World Finance PCP Corporate Philanthropy Award
2012 Pakistan Centre for Philanthropy 2012 SAFA 2nd Runner up Best Presented Annual Accounts 2011 - Banking Sector
Awards Most Stable Bank of the Year
2011 CFA Association Pakistan 2011 CFA Best Bank of the Year Best Bank in Pakistan
Association Pakistan 2011 Euromoney Best Corporate Report Award 2010 - Winner
2011 ICAP / ICMAP Joint 2nd Runner up Best Presented Annual Accounts 2010 - Banking Sector
2011 SAFA Awards Strongest Bank in Pakistan Leadership Achievement Award Best Bank Led MMT Service
2010 The Asian Banker 2010 The Asian Banker 2010 Best Corporate Report Award 2009 - Winner
MMT Certificate of Merit Best Presented Annual Accounts 2009 - Banking Sector
2010 ICAP / ICMAP Best Domestic Bank in Pakistan Best Domestic Bank in Pakistan
2010 SAFA Awards Best Bank in Asia Best Bank in Pakistan
2009 Asiamoney Best Domestic Bank in Pakistan
2009 The Asset Best Domestic Bank in Pakistan
2008 Euromoney Best Bank in Pakistan
2008 Euromoney Best Domestic Bank in Pakistan
2008 Asiamoney Best Bank in Pakistan
2006 Asiamoney Best Bank in Pakistan
2006 Euromoney Best Domestic Bank in Pakistan
2005 Asiamoney Best Bank in Pakistan Best Bank in Pakistan Best Bank in Pakistan
2005 Euromoney
2004 Euromoney
2004 Asiamoney
2003 Euromoney
2001 Euromoney
2000 Euromoney
Products & Services
MCB Digital Account opening for Resident Pakistanis
In line with Bank’s core strategy and in compliance with State Bank of Pakistan's digital onboarding framework,
introduced digital account opening solution (MCB e-Account) for Resident Pakistani individuals to enhance digital financ
following a few simple steps on the Digital portal, potential customers can submit an account opening application.
Through this service, the bank offers a wide range of existing segment- based products alongside of introducing d
products (MCB Asaan Digital, MCB Asaan Digital remittance and MCB Freelancer Digital Account). We believe that addi
value stream will help the bank in meeting growing digital demands and will play its role in progression in the days ahead
MCB Liability Products

MCB Bank offers a wide variety of products and services, hence ensuring ease and freedom for the customer to bank fro
network compromising of 1,400+ locations geographically spread across the country. The product suite caters to all type
segments’ banking needs ranging from individuals to corporate entities. Below are the main categories of liability p
by product wise details.
MCB Current Deposit Products Category

For complete day-to-day banking needs, MCB Current Deposit menu is offered in local and foreign currenc
designed to provide valued customers with transactional accessibility and flexibility for all their financial dealings.
MCB Savings Deposit Products Category

MCB Bank offers a wide array of local and foreign currency savings products that cater to their daily saving and transacti
multiple profit payment options, the savings deposit menu offers attractive profit rates on various savings products.
MCB Term Deposit Products Category

MCB Term Deposits offer attractive short / medium / long term investment options with flexibility, convenience and secur
tenors, multiple currency and profit payout options, customers can choose the one that best suits their needs. For further
facility of rollover and renewal is also available. Additionally, these term deposits can also be collateralized to avail credit
In order to meet the needs of MCB Bank’s diverse clientele, the Bank is
offering a plethora of products perfectly suited for each segment’s needs:
• MCB One Current Account: A unique all-in-one tiered product that caters to the checking account needs of
segments and demographics. MCB One Current Account is a holistic financial solution that provides free services (ba
cheque book, debit card, intercity transactions, SMS facility, e-statement). These unique benefits vary based on av
account balances. This has become one of our most iconic products and is making significant contributions to our curren
s
Best loan adviser in South Asian Region & Regional Awards
Best Structured Finance Deal in South Asian Region & Regional Awards Best equity-Linked Deal & Regional
Awards
Best Bank in Pakistan
Best Corporate Report Award 2020 – Winner
Overall Best Corporate Report Award 2020 – Winner
Joint 2nd Runner up Best Presented Annual Report 2020 - Banking Sector
Best Equity Deal of the Year- Pakistan Syndication Loan of the Year- Pakistan Telecom Deal of the Year in
Pakistan Best Corporate Sukuk
Best Acquisition Financing Best Syndicated Loan
Overall Most Outstanding Company in Pakistan
Most Outstanding Company – Financials Sector in Pakistan Best Corporate Report Award 2019 – Winner
Joint 1st Runner up Best Presented Annual Accounts 2019 - Banking Sector
Transport Deal of the Year Utility Deal of the Year
Equity Deal of the Year – Pakistan
Mergers and Acquisitions Deal of the Year – Pakistan Most Outstanding Company in Pakistan – Financial
Sector FinanceAsia Country Awards – Best Bank Pakistan
Best Corporate Report Award 2018 – Winner Certificate of Merit 2018 – Private Bank Category
Best Islamic Loan Adviser, Pakistan
Project Finance House of the Year, Pakistan
Renewable Energy Deal of the Year – Solar, Pakistan to MCB Bank Limited, MCB Bahrain & MCB Dubai
Oil and Gas Deal of the Year, Pakistan Telecom Deal of the Year, Pakistan Best Domestic Bank
Best Corporate Report Award 2017 - Winner
Best Investment Bank in Pakistan
Best Corporate Report Award 2016 - Winner Best Project Finance House in Pakistan Project Finance House
of the Year in Pakistan Renewable Energy Deal of the Year
Transport Deal of the Tear
Best Regional Bank in South Asia for Belt & Road Initiative (BRI) Best Bank in South Asia for Belt & Road
Initiative (BRI) Strongest Bank in Pakistan
Best Pakistan Deal, IPO of Pakistan Stock Exchange Best Equity Pakistan IPO of Pakistan Stock Exchange
Runner Up - Corporate Finance House of the Year
Certificate of Merit Best Presented Accounts 2016 - Banking Sector Certificate of Merit SAARC Anniversary
Awards for Corporate Governance
Best Bank in Pakistan 2016
Best Bank for Corporate Finance & Capital Market Development
Best Bank in Pakistan 2016
Most Innovative Investment Bank for Islamic Finance
Best Micro Finance Deal for National Rural Support Programme Certificate of Merit Best Presented Accounts
2015 - Banking Sector Certificate of Merit SAARC Anniversary Awards for Corporate Governance
Most Stable Bank of the Year 2014 Best Bank in Pakistan 2015
Winner of Best Presented Annual Accounts 2014 - Banking Sector
Best Bank - Pakistan
Best Domestic Bank - Pakistan
Best Bank of the Year 2013 – Large Bank
Most Stable Bank of the Year 2013 Best of the Best Domestic Bank Strongest Bank in Pakistan 2014
1st Runner up Best Presented Annual Accounts 2013 - Banking Sector
Best Domestic Bank - Pakistan Best Islamic Deal
Best Corporate Report Award 2012 - Winner Best Website Award
T+1 Cheque Clearing Award
Certificate of Merit Best Presented Annual Accounts 2012 - Banking Sector
Best Bank - Pakistan
Best Bank of the Year 2013 – Large Bank
Most Stable Bank of the Year 2013 Best of the Best Domestic Bank Strongest Bank in Pakistan 2014
1st Runner up Best Presented Annual Accounts 2013 - Banking Sector
Best Domestic Bank - Pakistan Best Islamic Deal
Best Corporate Report Award 2012 - Winner Best Website Award
T+1 Cheque Clearing Award

CSR Business Excellence Award “Best Media Coverage” 2nd Best Corporate Report Award 2011 - Banking Sector Best
Commercial Bank - Pakistan
PCP Corporate Philanthropy Award
2nd Runner up Best Presented Annual Accounts 2011 - Banking Sector
Most Stable Bank of the Year
Best Bank of the Year Best Bank in Pakistan
Joint 2nd Runner up Best Presented Annual Accounts 2010 - Banking Sector
Strongest Bank in Pakistan Leadership Achievement Award Best Bank Led MMT Service
Best Domestic Bank in Pakistan Best Domestic Bank in Pakistan
Best Bank in Asia Best Bank in Pakistan
Best Domestic Bank in Pakistan
Best Bank in Pakistan Best Bank in Pakistan Best Bank in Pakistan
vices
akistanis
pliance with State Bank of Pakistan's digital onboarding framework, the bank has
B e-Account) for Resident Pakistani individuals to enhance digital financial services. By
, potential customers can submit an account opening application.
range of existing segment- based products alongside of introducing digital liability

al remittance and MCB Freelancer Digital Account). We believe that addition of this new
ng digital demands and will play its role in progression in the days ahead.
services, hence ensuring ease and freedom for the customer to bank from its branch
raphically spread across the country. The product suite caters to all types of customer
als to corporate entities. Below are the main categories of liability products followed
MCB Current Deposit menu is offered in local and foreign currency and is
nsactional accessibility and flexibility for all their financial dealings.
n currency savings products that cater to their daily saving and transactional needs. With
osit menu offers attractive profit rates on various savings products.
um / long term investment options with flexibility, convenience and security. With various
ns, customers can choose the one that best suits their needs. For further convenience,
Additionally, these term deposits can also be collateralized to avail credit facilities.
diverse clientele, the Bank is

r each segment’s needs:
l-in-one tiered product that caters to the checking account needs of all customer
t Account is a holistic financial solution that provides free services (banker’s cheque,
s, SMS facility, e-statement). These unique benefits vary based on average monthly
most iconic products and is making significant contributions to our current deposit growth.
• Roshan Digital Account: Roshan Digital Account
(RDA) is a flagship initiative of State Bank of Pakistan. It is a tailor-
made digital financial solution, designed to facilitate Non-Resident
Pakistanis (NRPs) and Resident Pakistanis (with declared foreign
assets). The account provides innovative banking services in
Pakistan including but not limited to digital payments, savings
investments (Naya Pakistan Certificates) and donations (Roshan
Samaji Khidmat). MCB Bank is offering both current and savings
variants to its customers. For the first time in Pakistan, NRPs are
being provided the opportunity to remotely open an account
through a digital process without the need to visit a bank/ branch in-
person. Enhancement in RDA proposition is a continuous
objective of the regulator and MCB Bank. Introduction of Roshan
Apni Car and Roshan Apna Ghar initiatives have empowered
Resident Pakistanis to fulfill their dreams. MCB Bank, alongside of the
framework, is offering most of the products and services free to its
RDA customers which makes our proposition more lucrative.
• MCB Smart Business Account: A business account variant
offering free services & transaction facilities without any balance
maintenance requirement. The account is targeted towards business
entities in a more segmented and focused manner.
• MCB Salary Club Account: A unique product offering targeted
towards institutions / companies to manage payroll by getting employee
accounts opened with MCB Bank. MCB Salary Club Account has both
Current and Savings variants through which employees can avail
various free benefits including insurance coverage & discounts
on different services.
• MCB Ladies Account: MCB Ladies Account is targeted
specifically towards women with the main objective to create a
niche for females of Pakistan and give them the freedom of
managing their own finances with a sense of security and
independence. This product offers various benefits including free
insurance with a unique blend of health, accident, critical illness and
death coverage along with attractive discounts on other services. The
merchandise is feminist in its design
/ colors and the customer is given multiple options to choose a cheque
book or a debit card of choice.
• MCB Senior Citizens Account: MCB Senior Citizens Account
comes in both Current and Savings variants and aims to provide exclusive
privileges in order for our elderly customers to take care of their
financial needs with ease, while providing discounts on a wide array of
services. 50% discount on numerous services can be availed by opening
up a MCB Senior Citizens Account
• MCB Pensioners Account: MCB Pensioners Account
comes in both Current and Savings variants and allows account holders to live their lives to
the fullest and face the future with confidence. This account is designed
especially to cater to the financial needs of pensioners and is in compliance with
regulatory governance. 50% discount on numerous services can be availed by opening
up a MCB Pensioners Account.
• MCB Asaan Account: A current deposit account with simplified account opening
requirements is designed to extend benefits of financial services to unbanked
segments of society. This product aims to improve economic growth of potential
customers under the financial inclusion initiative of State Bank of Pakistan.
• MCB 365 Savings Gold Account: This account enables customers to enjoy
attractive returns on their deposits on a monthly basis. Special saving rates are
offered to entities / institutions / corporates on maintaining large deposits intermittently.
• MCB Burqraftaar Remittance Account: This is a promising product to serve
home remittance consumers with security, convenience, and accessibility. Remitters from
various countries are provided access to multiple money exchange companies from where
they can remit directly in MCB Burqraftaar Remittance Account instantly. Also, the
bank provides more than 100 dedicated remittance centers across the country where the
beneficiaries can collect cash in person. Further, the account offers withholding tax
exemptions on cash withdrawal, free debit card, insurance coverage to both the remitter
and beneficiary.
• MCB Asaan Remittance Account is another initiative by the SBP
under the financial inclusion program to provide secure home remittance
inflows. The account is available in the Current variant only and is targeted
towards unbanked/under-banked remittance beneficiaries of Pakistan, with
simplified account opening requirements. This product not only increases the Bank’s
product portfolio but also fulfills its fiduciary responsibility of documenting the
economy and inculcating a saving habit in its customers.
• MCB E-Statements: MCB Bank’s E-Statement initiative adds an additional
layer of convenience for our digital savvy customers. This service is free for all
customers and provides easier access to banking information when needed without
visiting the branch. This service also augments Bank efforts to reduce use of paper and
facilitate Green Banking guidelines issued by SBP.
MCB Privilege Banking
Privilege Banking takes pleasure in taking you on a journey of
superior high-end customer services, a rewarding in branch
experience, a wide array of financial services, investment
opportunities and transactional convenience, via dedicated,
contemporary and service- oriented sales force. These multi-
dimensional banking relationships experience positions privilege
segment customers at unparalleled advantages that put them ahead of
others. The Privilege relationship managers are skilled personalized
bankers, geared to manage, grow and retain customer’s wealth and
focuses on increasing the customer relationship span. MCB Bank has
eight dedicated Privilege Centers waiting to welcome you in Karachi,
Lahore, Islamabad, Faisalabad, Rawalpindi and Multan with plans to
expand to even more locations.
MCB Agri Financing Products
Agriculture finance business of the Bank has embraced a new &
progressive outlook as a result of various initiatives. The bank has
strengthened its Agri. financing structure in terms of required
delegation of approving authority and deployment of dedicated Human
Resources at the branch level. A well-equipped, trained & experienced
team of agriculture marketing officers has been put in place to
facilitate farmers on their door steps, for completion of documents
and revenue related formalities, along with providing them awareness
on banking facilities, products and financial management.
The performance and size of the Bank’s Agri. portfolio is gradually
expanding with a focus on encouraging mechanized farming. Moreover,
insurance arrangements are in place to provide risk coverage to
crops/tractors & equipment. Farmers are availing credit facilities to meet
input needs for poultry, dairy and fish farms apart from crops.
All credit proposals are processed as per standard guidelines of credit
policy of the bank and approved on merit.
MCB Bank fully supports all Government and State Bank of Pakistan
initiatives for promotion and steady flow of credit to the farmers.
This lends support to the national cause of food security for the people
of Pakistan and to exploit the potential of agriculture sector. Efforts
are made to enhance outreach to growers through innovative lending
including value chains and processing units. MCB Bank will continue to
support agriculture sector in line with its policy by remaining an active
partner supporting progressive farmers by providing credit for all types of
farm and non-farm activities. The microcredit needs of small
farmers are met through extending credit lines to NGOs/ MFIs supported
through digital services, thus serving the cause of financial inclusion.
The Agri. financing products offered cover requirements
of both production and development needs of farm & non-farm
activities. The farmers may need long term finance to undertake
development projects or there may be working capital requirements.
Long term financing needs are met through Term Finance whereas
working capital requirements are met by production finance.
Shadabi Plan: Covers agriculture loan products for the production
requirements of farm & non-farm activities of the farming community.
Financing products extended under this category are Agriculture
Running Finance- Revolving (ARF-R), Agriculture Production Finance
(APF) and Agriculture Production Finance-Growers (APF-G). All working
capital needs of non-farm are also covered under Shahdabi Plan through
APF/ARF.
Khushali Plan: Agri Development Finance (ADF) caters to the credit needs
of farmers, generally long term, pertaining to the development projects
related to both farm & non-farm sectors. Under Khushali Plan, different
products are offered to cater to sector specific credit needs. The
products offered are ADF (Tractor Finance), ADF (Aabiari Finance), ADF
(Dairy & Meat finance), ADF (Murghbani Finance), ADF (Baghbani
Finance), ADF (Mahigeri Finance) and ADF (Zari Technology Finance).
The amount of finance sanctioned depends upon the genuine credit
requirement of the farmer and collateral. Non-farm credit (poultry,
dairy[including value chains], fisheries, & others) and financing for
land leveling/ development, heavy equipment, agriculture machinery,
vehicles/transport for Agriculture purpose are covered under this plan.
High Efficiency Irrigation System (HEIS): The Financing Product for
“High Efficiency Irrigation System (HEIS)” facilitates farmers in availing
the subsidy provided under the provincial government schemes aimed at
conservation of water and avoiding wastage of the precious resource. Drip and
sprinkler irrigation systems are referred to as High Efficiency Irrigation
Systems, (HEIS) which enable timely application of water and other inputs
i.e. fertilizers, nutrients etc. as per plant requirements at various stages of
growth. The HEISs are versatile in their applicability and provide
complete control in irrigation operations. HEISs can be practiced on a variety
of soil conditions e.g. uneven topography, odd field configurations, rolling
sandy areas, etc. and are best suited for variety of crops such as orchards,
vegetables, cotton, maize, sugarcane, wheat, fodder, gram etc.
Governments of Punjab and Sindh are subsidizing these high
efficiency irrigation systems to farmers by contributing 60% of the total
project cost and remaining 40% cost sharing by the farmers. Under HEIS
Financing,
MCB will provide financing to the extent of 80% of farmer’s
share towards installation of HEIS. The purpose of HEIS financing
scheme is to facilitate farmers in adoption of high efficiency
irrigation system, which in turn would help them in efficient
utilization of water & other resources to improve per acre yield.
The solar/renewable energy requirements of farmers for agriculture
purposes are also fully supported.
There may be other development projects proposed by the farmers
falling within the ambit of agriculture financing. MCB Bank is fully
committed to meet all type of genuine credit needs of the farmers as a
strong financial institution, concerned for and aligned with, the
national cause of supporting Agriculture Sector of Pakistan.
Prime Minister’s Kamyab Jawan Youth
Entrepreneurship Scheme (PMKJYES):
In order to provide self-employment opportunities to unemployed
youth and to enable youth to avail affordable financing from banks for
establishing new business or strengthening their existing business,
Government of Pakistan has launched Prime Minister’s Kamyab
Jawan Lending Program across the country. MCB is also offering
different agricultural products under the scheme. Mainly Tractor
Finance (ADF-Tractor-Kamyab Jawan) is being offered for
purchase of tractor for farm mechanization. Other financing
products under this scheme are ADF- Dairy-Kamyab Jawan and
ADF-General-Kamyab Jawan. Short to Long Term Loan for Purchase
of Dairy Animals, purchase of farm machinery & equipment’s etc. is
being financed under ADF-General-Kamyab Jawan where
cash flows meet the repayment requirement of debt on quarterly &
monthly basis as admissible under PM-KJYES are being considered.
Digital Access to record of Punjab Land Record
Authority (PLRA):
MCB has signed a Service Level Agreement with Punjab Land
Record Authority (PLRA) to provide online access to data for a defined
scope of services under the SLA. Digital access is aimed at
enabling the fast track provision of documents/information related to
land record of farmers for quick decision making and sanctioning
of financing facilities. The scope of services covers issuance of Fard,
charge creation, and redemption. The branches are being equipped with
necessary infrastructure/equipment in a phased manner for availability
of online access to PLRA records. The initiative has been
implemented and major Agri lending branches have started providing
services to farmers. As a result of this initiative, the dream of a strong
digitalized platform for dedicated support to famers of Punjab
Province for quick access to banking facilities is close to realization.
MCB Bank is one of the leading banks which have started offering
services to the farmers under the digitalized access to PLRA record.
Loan Origination System:
MCB Bank has procured and implemented a Loan Origination System (LOS), a
parameterized solution for efficient processing in order to automate the end- to-
end credit approval process, optimize the loan processing activity and to
gain efficiencies. LOS has been implemented for Agri. Financing across the bank
covering all Agri. Lending Branches. This has greatly helped in the fast processing and
approval of farmers’ requests for finance.
MCB is fully committed to support agriculture financing in line with
SBP/Government policies and taking steps to enhance credit flow to the farming
community through strengthening of internal systems and to ensure availability of
required resources.
MCB-Signed MOU with Millat Tractors:
In order to jointly facilitate the farming community for providing finance facility
for purchase of Millat tractors and implements MCB has signed MOU with Millat
Tractors Limited. Under this MOU Bank will provide fast track finance facility to
Millat tractor’s client & Millat will provide fast track delivery for MCB booked Tractors.
Millat & Bank will jointly advertise/promote their products as per mutual
understanding.
MCB Consumer Lending Products
MCB Consumer Banking offers a full suite of consumer lending products to its valued
customers. The Bank’s current product portfolio consists of credit cards, auto loans,
Fleet4U, home loans (including Mera Pakistan Mera Ghar Scheme & Low Cost
Housing Scheme for Special Segments), personal loans, secured personal loans,
unsecured overdraft facility and student personal loan (for LUMS MBA and MPHIL ELM
students), Roshan Apni Car and Roshan Apna Ghar financing. At MCB Bank, the
ideology behind our innovative Consumer financing products focuses on
meeting three of our client’s objectives simultaneously, i.e. affordability, convenience
and lifestyle. MCB Consumer Finance products enhance the overall life experience of
our customers. MCB Bank works to collaborate with targeted brands and
organizations to ensure that we provide premium value added services to our clients.
MCB Consumer Banking is ably assisted by strong back office support which includes
Operations, Service Quality, Internal Audit, Compliance and a Legal Team that work
together to ensure that the Bank operates efficiently and in the best interest of its
customers under the regulatory framework.
MCB Car4U
The Bank’s auto financing product, MCB Car4U, provides a one-stop financing
solution to help our customers obtain the automobile of their dreams. Customers are
free
to choose between used and new vehicles, manufactured
locally on flexible tenors. MCB Car4U also allows
customers to finance up to three cars simultaneously from MCB
Bank in line with their unique needs and requirements. Both
finance and lease variants are offered under Car4U financing. MCB
Car4U offers auto loans to customers in 1,400+ of our branches
across 85 cities. Both self-employed and salaried customers can
apply for a MCB Car4U Loan with ease. The Bank offers a
competitive markup rate to all customers and also offers a discounted
markup rate to its existing Branch Customers. Over the years, the Bank has
formed a strong network of auto-dealers, engaged in sale of both
new/used cars enabling us to facilitate our customers evolving needs.
MCB Bank values its credible and expansive dealer network as one of
the key pillars of its success in the auto finance business.
MCB Fleet4U:
MCB Fleet4U provides financing solutions to help SE, ME,
corporate and commercial entities on a limit sharing basis under the
umbrella of consumer lending. Customers have an option of leasing local
private vehicles, imported vehicles (new & used) (SUV), MPVs,
commercial vehicles & light commercial vehicles.
MCB Home Loan
Owning a home is a dream for many. At MCB Bank, we aim to help our
customers fulfill this lifelong ambition and turn their dream into reality.
MCB Home Loans provides financing solutions for the purchase of a
home as well as for plots and construction thereon. MCB Bank also
offers a subsidized home loan product under the Government’s Mera
Pakistan Mera Ghar scheme and Low Cost Housing Scheme for Special
Segments. Customers also have an opportunity to transfer their existing
loan from any other bank to MCB Bank through a balance transfer
facility. MCB Home Loan product also caters to housing needs of non-
resident Pakistanis in Pakistan. MCB Home Loan product is now
available across country through a network of over 700 branches
supported by a team of skilled home finance specialists placed at
multiple locations in the country.
MCB Credit Cards
MCB Credit Cards are secured with Chip & PIN & contactless
functionality and carry world class features that provide transactional &
payment convenience to our customers across the globe. Online purchases
are now more secure with 3D Secure protocol. The instant SMS and
E-Alert facility enables our customers to monitor their credit card
transactions and be alert of potential misuse of their Credit Card. The cards
are available in three different variants i.e. Classic, Gold and Platinum that
cater to the diverse needs of our distinguished customers. MCB Visa
Credit Cardholders now can activate and generate their
Credit Card PINs via IVR Self Service and MCB Live 24/7 hours.
Besides transactional convenience, these cards also offer payment
flexibility / financial convenience to the customer via MCB Live, Utility,
Telcos Other bank Credit Card payment via 1bill in addition to 0% service fee
on Installment Plans, the ability to transfer balances on a lower rate or even
request for a Banker’s Cheque in the customer’s own name or direct credit in
their own MCB account & accounts in other Banks.
Credit Card Bill payments are made more convenient for customers, who
can now make their Credit Card bill payments through Cash, MCB Cheque,
Cheques of other Banks, over the MCB Branch counters and MCB Contact
Center. They can also make payments through MCB Bank and other
Bank’s Digital Banking & ATM services.
MCB Personal Loan:
MCB Personal Loan is a fast, affordable and easy option to meet our
customers’ immediate financing needs. This is an unsecured product and
does not require any security. This product is only available to salaried
customers.
Roshan Digital Account – Value Added Services:
Roshan Apni Car and Roshan Apna Ghar products have been launched in
line with the directives of State Bank of Pakistan to offer value added
lending facilities to Roshan Digital Account holders with the ambition to
provide non-resident Pakistanis more avenues of lending and investment
in Pakistan. Through Roshan Apni Car product, vehicle financing facility
has been offered on lien and non-lien basis on reduced markup
rates (fixed & floating), priority deliveries, attractive comprehensive
insurance rates. However, Roshan Apna Ghar facility is being offered to
non-resident Pakistanis to purchase their own home in Pakistan. This
facility is available under both variants i.e. standard and Mera Pakistan Mera
Ghar scheme on lien and non-lien basis. Roshan Apna Ghar loan is
being offered at very competitive/reduced markup rates.
MCB Wealth Management:
MCB Bank is among the market leaders in providing Wealth Management
Services to its customers. The business is constantly evolving and expanding
its product suite for both Insurance and Investment products to cater to our
clients’ financial requirements. We are partners with some of the leading
Insurance and Asset Management companies in Pakistan to deliver
innovative solutions based on customer needs, future plans and risk appetite.
MCB Bancassurance:
MCB Bank strives to help the dreams of its customers come true.
Your dreams may be to give your child the best education,
live a dignified life after retirement or to keep your loved ones
financially secure and protected.
MCB Bancassurance plans provide you with the underlying
financial security you and your family deserve. We work with our
insurance partners to understand your needs based on your stage in
life and provide tailor-make plans which are affordable and realistic. In
addition, you and your family enjoy the peace of mind which
comes from being ‘Har Pal Mehfooz’ in case of any unforeseen
eventuality. Together with our insurance partners, we have a wide
range options available which ensure that you and your funds are in
good hands. All plans are underwritten by leading insurance providers
and all funds are managed by experts in the field to give you the
optimal returns based on your risk preferences and stage of life.
Combining the best of banking and financial solutions, MCB
Bancassurance provides a one-stop solution for your convenience
and security.
MCB Investment Services:
Investment Services operate with the aim to help you make the most of
your wealth with investment opportunities that match your unique
financial objectives. MCB Investment Services offers mutual funds
managed by leading fund managers. We offer products most
suited for your needs, or work with you to create a personalized
solution completely focused on your expectations whilst keeping in view
your risk tolerance. These products designed to offer financial
liquidity/capital appreciation and assist you to meet both short- and
long-term investment needs.
MCB Digital Banking Products and
Services
MCB Debit Card
With global acceptance at more than 20 million merchants and 1.5
million ATMs worldwide; MCB Debit Cards is a way forward into
the changing future of payments. MCB Bank is proud to have the latest
dynamic Chip & PIN based Debit Cards which allow customers to have
unmatched convenience, enhanced security and round- the-clock
accessibility to their funds. MCB Debit Cards are accepted at
12,000+ ATMs and 45,000+ merchants nationwide, with promotional
discount schemes designed to reward our users for shopping, dining, fuel,
travel, health and much more. With an MCB Debit Card, one can forget
the need to carry cash. The product proposition has been further enhanced
with the launch of card variants like Visa Platinum, Gold, Gold Local
and supplementary cards. MCB Debit card also offers multiple
international and local payment scheme cards which include Visa,
MasterCard and PayPak fulfilling various customer segment
needs,
MCB Bank is proud to be chosen as one of the main banks
to provide services to overseas Pakistani through Roshan Digital Account (RDA). MCB has
started issuance of debit cards to RDA account holders as well. MCB Bank is one of the
handful of banks in Pakistan who have ventured to comply themselves with the PCI DSS
which is considered to be the international benchmark for card data security thus improving
the overall product value proposition.
MCB ATMs
MCB Bank has one of the largest ATM networks in the country with 1,450+
ATMs which includes 164 offsite ATMs placed at commercial locations like
malls, workplaces and hospitals etc. The network covers 500+ cities across the country
and is steadily growing. MCB Bank has one of the best ATM uptime availability across
the industry, ensured by the presence of ATM monitoring teams working 24/7, periodic
ATM health checks and hardware replacements. MCB ATMs provide our customer
with convenience to withdraw cash, make utility bill payments, mobile top-ups, funds
transfer through its countrywide network.
Omni Channel Digital Experience - MCBLive
The Bank offer a world class Oracle-based platform MCB Live – an Omni-channel
digital banking platform equipped with advanced mobile and online banking features to
its customers. MCB Live provides our customers, an easy and secure way to transfer
money, carry out balance inquiries, check mini-statements, buy top-ups, pay
bills, and much more from the comfort of their homes 24/7/365. The new digital
banking application facilitates its customers to manage and control their bank accounts,
debit & credit cards; whenever and wherever they want. The launch of MCB Live marks
the start of a new digital era of MCB Bank.
MCB Lite
MCB Bank received its branchless banking license 8 years ago, and formally
started its branchless journey with the launch of MCB Lite in 2014. MCB Lite mobile
wallet allows customers to handle their daily transactions and payments in an
efficient and real time manner from one’s mobile phone. Wallet can be linked with
any Lite debit card (local or international payment scheme) for local, international
and E-commerce use. Moreover, to support foreign remittances, the enablement of Lite
Remit feature has allowed customers to receive money directly into their Lite mobile
wallet from anywhere in the world. MCB Lite is all set to explore new fronts and expand its
overall footprint across the branchless banking arena.
MCB Card Discounts
Caring for and giving back to our esteemed customers is what MCB Card Discounts is all
about. MCB Bank is
proud to have the best discount offers for our prized MCB
(Debit, Credit, Prepaid and Lite) cardholders. MCB offers a wide variety of
discounts across all top retail merchants and brands ranging from dining,
shopping and lodging. MCB Bank’s motto i.e. ‘Bank for Life’ is truly
personified through our MCB Card Discounts program.
MCB Alerts
MCB Bank is proud to offer its valued customers with alerts services
that comprise of SMS alerts. This service allows customers to keep track
of all of their banking transactions through SMS notifications.
By applying to this service, customers receive real time updates
whenever they conduct a transaction on any of their MCB bank accounts. It
is a great way of staying updated about transactions conducted on one’s
account(s).
Card Acquiring (POS)
MCB Bank has a network of approximately 9,000 POS terminals deployed
at key merchant locations across Pakistan. Our Point of Sale (POS)
network is fully EMV compliant and accepts Visa, MasterCard,
UPI, JCB and Pay-Pak card transactions from all over the
world. MCB’s POS Acquiring business continues to grow due to
deepening of merchant relationships, round the clock support, increased
POS productivity and quality of deployments.
Internet Acquiring (MCB eGate)
MCB e-Gate is a world-class online payment gateway service,
formed as a result of MCB’s partnership with MasterCard
International. MCB e-Gate equips online businesses to accept
payments reliably and securely from both credit as well as debit cards and
currently facilitates more than 600+ online merchants, directly and
indirectly. The online card acquisition footprint has grown and
continues to grow substantially worldwide and MCB Bank is playing an
integral part in developing the e-commerce market in the country.
Further, to improve online shopping and merchant experience for e-
commerce, MCB e-Gate payment system has now been upgraded from
Mastercard Internet Gateway Service (MIGS) to Mastercard Payment
Gateway Services (MPGS) which is fast, reliable and supports
multiple payment modes. It also comes with the range of other value added
features including Real time fraud prevention and supports Mobile
Commerce.
MCB Contact Center
The human voice is still valued as the most trusted and relevant form of
communication medium by a majority of our clients. This has
inspired us to constantly improve our service and upgrade our MCB
Contact Center to the world’s best CISCO Platform. This proactive
upgrade has enabled us to enhance service delivery across multiple
channels while allowing us to address specific needs of our
esteemed customers. MCB Contact Center is equipped with a team of trained
professionals who offer a wide array of financial and non-financial services
in multiple regional languages around the clock. The customers are further
facilitated through self-services modes like Interactive Voice Response
(IVR), Self Service Channel and our Live Chat facility. The Contact Center
not only serves and strives to retain MCB Bank customers but also cross-
sells and up-sells a number of products and services as well.
CFIBG Products and Services
MCB Bank’s Home Remittance brand, MCB Burqraftaar was amongst the
largest remittance payout brands in Pakistan in 2021. Our contribution
through MCB Burqraftaar is not only limited to the bank’s growth but we are
also proud to be one of the biggest contributors to the national interest of the
country by promoting remittances through legal channels. MCB Bank has
managed to build an extensive network of partners across the globe to ensure
overseas Pakistanis can send money to their families back home.
• MCB Burqraftaar Cash (Cash in Hand) is available via MCB Bank’s
entire branch network. Payments can be made from any of MCB’s 1,400+
branches to walk- in customers.
• MCB Burqraftaar Transfer (Straight to Account) enables overseas
Pakistanis to send their remittances to their loved ones in Pakistan through
our hassle-free straight to account credit service.
• MCB Lite Remit allows beneficiaries to receive money from their loved
ones directly into their Mobile Wallet, from our global network of remittance
partners. Money can be conveniently withdrawn from MCB Lite Card
through MCB Bank branches, MCB ATMs, 1Link ATMs, or use the funds
through the MCB Lite mobile App and POS terminals.
• MCB Asaan Remittance Account is targeted towards unbanked /
under-banked Remittance Beneficiaries of Pakistan with
simplified/relaxed account opening requirements and procedures.
• MCB Burqraftaar Remittance Account is targeted towards inward
remittance beneficiaries in Pakistan with a unique feature of exemption on
withholding tax on all cash withdrawal transactions of any amount via cheques
from all MCB Bank branches & country-wide ATMs.
MCB Home Remittance is continuously working to design new products
and facilities for the ease and convenience of remitters and beneficiaries.
MCB Transaction Banking: Transaction Banking (TBD) provides a
wide range of value-added collection and payment services to large
corporations through
the Bank’s vast network of real-time branches. TBD
provides structured and customized collection products enabling
customers to realize their sales proceeds swiftly from across the
country, supported by real-time MIS reports.
Corporate Collection and Payment
• MCB CollectPlus: Collection through a deposit of cash, same
branch and local clearing instruments in designated MCB Bank
Branches.
• MCB RemitPlus: Collection through a confirmed and secured
receipt, without the involvement of the clearing process.
• SIDA: Collection through direct debit of dealers’ accounts
maintained at the branch.
• MCB DebitPlus: Collection through direct debit of dealers’
account maintained at the branch by TBD via a one-time instruction
from the dealer/distributor and email instruction from the customer.
• MCB PayPlus: Payment by IFT/IBFT/Bankers
cheques/RTGS by emailing the relevant file/instructions to TBD.
• TBD - FI Cash Management: We offer unique cash management
solutions to our local Correspondent Banks and Non-Bank Financial
Institutions to meet their particular requirements for fund collection,
payment, reconciliation, and reporting.
• Online Fund Transfer (OFT): This web-based electronic
fund transfer facility has been designed to enable a large network of
franchises/dealers/distributors to conduct real-time branchless
transactions through a secured MCB Bank website.
• Dividend Warrant Management: The Bank provides a complete
and comprehensive dividend solution to customers through electronic
transfers to shareholders accounts & processing of warrants through MCB
Bank branches, followed by complete reconciliation. Foreign dividends
are also managed end to end by TBD
• Sub Clearing Arrangement: MicroFinance banks that do not have
operating licenses for clearing can now rely on MCB Bank to act as
their sub-clearing agent for processing transactions through NIFT
• Payment Station: Corporate Payment Station “MCB Pay Direct”
offers a real-time comprehensive payment and transfer mechanism
for corporate and large business entities. This allows our customers to
virtually execute A2A, Cash Payments, Bankers Cheque, IBFT, RTGS,
and Report Printing.
• Viewing Module for Electronic Bank Guarantees: A viewing
module that will enable corporates to view Electronic Bank Guarantees of
their dealers/distributors issued in their favor via SWIFT MT-760.
Corporates will
have the option to view the reports on their personal
devices. The corporates can view swift message MT-760 & reports any time
through the given portal. Only authorized individuals of corporates can view the
reports to ensure confidentiality. The benefits of the system include:-
- Convenient and user friendly interface
- Secure online viewing of electronic Bank Guarantees by
company’s authorized staff through TBD portal
- Complete and verified detail of Electronic Bank Guarantees along with
swift message MT-760
• Sub Collection Account (SCA): An account which facilitates the
dealers/distributors of our corporate clients who do not have an account with MCB
bank. Dealers/Distributors who are maintaining their accounts at other banks will be able
to deposit to MCB Bank through online mode i.e. IFT/ IBFT/RTGS/ATM and the
respective information will also be available on a real- time basis for corporates. All
funds available in SCA will be transferred to Main Collection Account (MCA) of
TBD customer by day end (or on a regular interval during the day). The benefits of sub
collection account include:-
- Real time MIS Reports
- Funds identification of dealers/distributors who do not
have an account with MCB Bank.
- Online method so dealers/distributors need not need to
go to MCB branch to deposit.
• Digital Debit Plus: An innovative digital banking solution where SIDA
instructions of companies can now be done online for corporate convenience. Using this
facility corporates can access TBD’s system through which they can execute their SIDA
and obtain real time MIS of their transactions. They can process orders placed by
dealers/distributors across Pakistan through any MCB accounts using TBD portal with
convenience from their office premises. The facility will be provided to only the
authorized users of the company for them to conduct their transactions. The benefits of
Digital Debit Plus include:-
- Real time MIS Reports for corporates
- SMS alerts for the dealers once Digital SIDA executed
- No need for corporates to visit MCB branch to execute
SIDA
Our Corporate Banking team works in conjunction with Transaction Banking to
facilitate customer requirements for collections, payments, dealer finance,
electronic dividends, and bulk salary processing.
• Corporate IVR for Collections: MCB introduced a new platform for Dealers,
Distributors, and Franchisees to conduct transactions without the need to visit
MCB branches, by using our existing CRM and IVR
channel. The product provides security in terms of cash-carrying
and also allows the dealers/distributors to conduct transactions
even after banking hours i.e. 24/7. It ensures a smooth flow of
regular transactions and provides the bank with higher profits
and lower operational expenses and transaction costs. The
addition of this channel has also helped us in reducing our cash
handling cost and will subsequently encourage dealers to open accounts
with MCB.
• Tax & Duties Payments to FBR: Now MCB Customers can pay
their FBR Tax and Duties securely and conveniently through
MCB Transaction Banking “Over- the-Counter” at any MCB
branch as well as through “TBD MCB PayPlus” by sending us
their tax payment details on a secured file. Our Corporate
customers can also pay their taxes and duties through “TBD
MCB PayDirect” 24x7 and from anywhere in the world. Under
FBR payments, MCB offers real-time integration with 1-Link
and CBS with complete security and a two-step authorization
process. Complete transaction details are ensured through
computer-processed receipt, instant SMS alert, and detailed
MIS for the branch / back office.
Banker to the Issue for IPO/SPO’s & Right Shares:
We provide efficient & effective processing for both IPO/ SPOs &
Right Share Mandates. Our branches are well- trained in handling
collections for both these products. The information mentioned in
the forms is matched with funds collected and after reconciliation;
these are transferred to the respective company. MCB Bank’s TBD
team works jointly with Investment Banking Team on various
IPO/SPOs & Rights Shares to facilitate clients.
MCB Corporate Banking Finance: MCB Bank’s Corporate Banking
Finance is equipped with a professional and devoted relationship
management team having a presence in 5 cities (namely
Karachi, Multan, Faisalabad, Lahore, and Islamabad) across
Pakistan is providing structured financial services through
dedicated Corporate Centers/Branches.
The corporate Team operates in 3-dimensional
approaches within the defined goals of the organization.
• Financial Services and Solutions: MCB Corporate Banking
provides access to diversified financing options, including
working capital loans, term loans, trade based finance services
(bank guarantees, Import Letter of Credits, import and export
services, bill
Broadening Bankable Base
by channelizing multiple service
ranging from Advisory to Retail to
Consumer & Cash Management
Providing Financial Solution
and Service
Focus on Service
discounting / negotiation, Export finance both in USD
and PKR, State Bank of Pakistan export refinance and Long Term
Finance, Import finance both in USD and PKR), dollar-based loans,
financing under SBP schemes and depository options are also offered under
various schemes.
• Broadening Bankable Base: Our Corporate Banking team works in close
liaison with our Investment Banking team to facilitate clients with advisory and
arrangement services for equity, debt and project finance offered
through our Investment Banking Division. Similarly, our Corporate Banking
team works in conjunction with Transaction Banking, Retail, and
Consumer Team to facilitate their requirements for collections, payments,
dealer finance, electronic dividends, bulk salary processing, and
various consumer-related products for their employees and shareholders.
• Focus on Service: Dedicated Corporate Branches are available in 5 cities
Karachi, Multan, Faisalabad, Lahore, and Islamabad to cater business
needs of corporate relationships through the support of the Corporate
Relationship Management Team.
MCB Investment Banking: MCB Investment Banking offers a full
suite of Investment Banking services ranging from equity & advisory,
syndications and debt capital markets to Project and structured finance.
MCB Investment Banking works in close coordination with Corporate and
Retail Banking to facilitate their clients with its services.
MCB Project and Structured Finance: MCB Project and Structured
Finance is a ‘Non-recourse’ or ‘Limited Recourse’ financing, where the
lenders base their credit decision primarily on the cash flows of the
project, concerning repayment of the project debts. Risks are carefully
allocated amongst various stakeholders.
MCB Syndicated Loans and Debt Capital Markets: MCB Syndicated
Loans and Debt Capital Markets involve arrangement, underwriting and
placement services for debt financing requirements by large
corporate and institutional clients to other financial institutions or through
the debt capital markets.
MCB Quasi Equity / Hybrid Instruments: MCB Quasi Equity/Hybrid
Instruments are structured and tailor-made products incorporating
specific customer requirements based on debt and/or equity components
including unsecured nature instruments, subordinated nature types,
cumulative/noncumulative dividend payments types, equity play component
instruments, etc.
MCB Equity Capital Raising: MCB Equity Capital Raising relates to
raising capital for our clients by offering
common or preferred equity to the public or private
investors, through initial public offers, offers for sale, rights issues and
private equity placements and underwriting of equity issues in the Capital
Market.
MCB Advisory Services: Financial and Capital Raising Advisory
provides our clients with financial advisory services for
mergers and acquisitions, privatization, project finance,
commercial structuring support and access to capital resources
to assist companies successfully finance their business/project.
Strategic Investments and Acquisitions Division evaluates potential
investments, both minority and majority stakes in different financial
institutions, and then proceeds with the execution on the advice of
the Board of Directors. Strategic acquisitions also evaluate operations of
different subsidiaries/businesses and with the Board of Directors' consent
can proceed with divestments of businesses that are deemed non-
core businesses. This Division also maintains a relationship with
strategic investors.
MCB Trade Products
Trade Products provide a wide range of standard as well as tailor-made
products and solutions to trade customers from all walks of life.
Despite having an inventory of standard to market products in
refined shape, specific new-to-market products include:
• Quick-LC: A simple and easy to use mechanism, internal design
of desktop application, allowing customers to type-in, e-mail
and print out an LC application form, reducing cost and hassle
while improving TAT and input accuracy.
• X-Flex: A solution which facilitates external export business for
customers in cases where transport documents (Bill of Lading) are
not available at the counters of MCB’s discounting / financing
branch on the date of extending financing.
• TRIMS: Facilitates the financing of inland trade through the
involvement of MCB Bank at both ends thereby allowing an exporter
to get receivables discounted on non-recourse basis, i.e. the exporter
receives payment in a given time (in less than 48 hours) after
performing obligations.
• Econ-LC: A product program which allows drafts/bills of exchange to
be waived as a requirement under LCs available by negotiation resulting
in reduction in overall transaction cost for importers.
• Avalization (Export): A global product designed to facilitate
the financing of export by allowing an Exporter (Seller) to discount
the receivables under credit granted to a counter party, i.e. Importer
(Buyer), without taking payment risk on the Importer (Buyer) under a
contract (non-LC transactions).
• Avalization (Import): A product which facilitates
delivery of import documents (and goods) against importer’s acceptance under
contracts (without opening of LC) hence offers savings associated with fees and
commissions.
• China LC Confirmation Programme: Under this program the branches of MCB’s
partner bank located in Hong Kong and China add “Confirmation” to MCB LCs on
“Free of Cost” basis thus increasing acceptability of MCB’s Import LCs and facilitate
import customers.
• Europe LC Routing Program: Under this program the branches of MCB’s
partner bank located in UK will be handling LC transaction originated by MCB
under special arrangements which includes advising, confirmations, bill discounting
and UPAS transactions.
MCB Sri Lanka - Products and Services
Current Account - Take account of things that matter!
MCB Bank Current account allows our customers to distinguish themselves in the
financial market with a secure and faster cheque clearing process, allowing them to
carry out their transactions with a greater level of confidence.
Privilege Current Account – Feel prioritized and privileged! MCB Bank Privilege Current
Account offers a range of personal and business banking solutions that are specially
tailored to meet our customers’ emerging needs.
Savings Account - The smarter your savings, the higher your returns!
MCB Savings Account is designed to encourage customers to maintain a healthy
account balance, which keeps growing day by day. Tier based interest rates enable
customers to enjoy an attractive return on their funds. Customers have the
freedom to utilize their funds to meet their day to day financial needs with no
restrictions to the number of transactions they perform.
Fixed Deposits -The safe way to save!
Fixed Deposit Accounts are designed to suit the diversified investment requirements
of our customers. Starting from 7 Days Call Deposits, our product range extends to Term
Deposits that can be fixed up to 4 years. Further, we offer the option of obtaining
the interest at maturity or specific interim periods (monthly/quarterly) depending on
the customer’s requirement for funds.
MCB Kidz Club - Pave the future for your child!
Children are the wealth of our nation. We offer ample encouragement and incentives
to assure them of a secure future. MCB Kidz Club Account offers an attractive interest
rate coupled with a wonderful gift scheme based on the
account balance. This encourages parents and children to grow their
account balance to enjoy the financial return, as well as to collect gift
items on reaching specific account balances.
Foreign Currency Accounts - When you need
financial diversity!
MCB customers can save in any designated foreign currency and
enjoy attractive returns. Further, we offer a wide range of
account types for personal and business clients under special schemes
approved by the Department of Foreign Exchange of the Central Bank of
Sri Lanka.
MCB Debit Card – Introducing more convenience!
MCB Bank has been providing financial services to its valued
customers since 1994. To further enhance this relationship, MCB
signed up with the partnership of Lanka Pay and JCB for the
introduction of Debit Card, providing our valuable customers the
facility to shop with convenience. Debit Card also provides access to
customer accounts through a shared network of over 4,500 ATMs
Island wide.
Virtual Banking – Smart & secure access 24/7!
Virtual Banking helps customers stay updated on their account
activities from wherever they are, and carry out their banking transactions
at a time that is convenient for them, instead of restricting
themselves to standard banking hours.
MCB Mobile – Upgrade to the future
MCB Mobile is the flagship technology product of MCB Bank’s
innovative digital banking services. MCB Mobile App is designed
with a user-friendly interface to provide convenience in conducting
payments and secured financial and non-financial transactions.
Safe Deposit Lockers - Where safety is a promise!
We pride ourselves in offering our customers ease of mind and this
is yet another service that highlights our commitment to providing
everything necessary to accommodate their needs. We offer various
types of lockers depending on customer requirements that may
include protecting their documents, jewelry, or any other valuables.
Home Remittance – Transferring happiness to your Homeland!
MCB Home Remittance is a simple and dependable way of sending money
to your loved ones in Sri Lanka from anywhere in the world. With a wide
network of worldwide remittance partners (including the partners of
MCB
Bank Pakistan), we ensure the fastest and safest money
transfer.
Trade Services – Trading becomes convenient & faster!
MCB Trade Services empower individuals and businesses to reach their
highest potential by streamlining and customizing processes and product
portfolio. We ensure that a comprehensive range of trade products and
services will enable you to do your business successfully. A specialized product
called ‘Avalization Imports’ is also available under trade services portfolio to
facilitate trade transactions under Collection terms.
SME & Corporate Banking
We offer diversified finance options for Small/Medium Entrepreneurs
and Corporate customers to achieve success in their business. These
financing options range from Overdrafts, Leasing for vehicle and
machinery, Working Capital Loans, Term Loans, Trade Finance, and
Structured Project Financing to cater to the evolving needs of our
Business Banking customers. A wide range of Treasury products including
Forward Contracts, Repurchase Agreements, Spot Contracts, and Treasury
Bills are also offered under investment options.
UAE - Products and Services
MCB UAE has an array of customized business products for its wholesale
customers that include Business Accounts, Finance & Trade products. These
services are aimed at fulfilling the day to day needs of the businesses at
competitive yet flexible prices.
Avalization
The "Avalization (Export)" product has been designed to facilitate the
financing of exports by allowing an Exporter (Seller) to discount its
receivables under credit granted to a counterparty i.e. Importer (Buyer),
without taking payment risk on the Importer (Buyer); through the involvement
of banks at both ends, the Exporter (Seller) receives its payment a few days
after performing its obligations under a contract (and not under a letter of
credit) entered into with the Importer (Buyer) instead of waiting for the full
tenor of the credit period granted to the Importer (Buyer). The receivables are
secured by a bill of exchange or promissory note accepted by the obligor (the
person who is liable for the payment of the receivable). By way of credit
enhancement, these receivables are further backed by the guarantee or
commitment of the obligor's bank who becomes the end obligor.
MCB Current Deposit Account
It is designed to provide our wholesale customers with
transactional convenience and flexibility. Choices of local
(AED) and International currencies (USD/GBP/EUR) are
available at attractive options for our business customers with a low
minimum balance.
365 Savings Business Gold Account
Transactional flexibility in a Savings account, 365 days Gold
Account provides the choice of local (AED) and International
currencies (USD/GBP/EUR). This account will grow savings at an
attractive interest rate for 365 days while giving the flexibility to use
these funds for business transactional needs as well. This is an
attractive option for business customers with a high balance and
with requirements of transactional flexibility.
Term Deposit
Term Deposit products are available in a choice of local (AED) and
International currencies (USD/GBP/EUR). Tenor options can be
chosen between 1, 3, 6, and 12 months. It is an attractive option for
our business customers with short to mid-term investment
opportunities.
Demand Finance
It is financing for a fixed period repayable either in periodic
installments or in a lump sum, at a future date. An attractive option for
business customers that require financing against fixed assets
such as plant and machinery, land, building, etc.
Overdraft
Overdraft facility allows businesses to access additional funds for day to
day business expenses. The overdraft facility will charge interest only
on the daily outstanding balance from the Current Account above the
credit amount available.
Bills Discounting
Our discounting solution is for clients who are looking to fund
their working capital requirements. While discounting, the bank buys
the bill (i.e. bill of exchange or promissory note) before it is due. The
transaction is practically an advance against the security of the bill and
the discount represents the interest on the bill from the date of purchase of
the bill until it is due for payment.
Post-dated Cheque Discount Facility
Cheque Purchase Discount Facility from MCB Bank takes away the
hassle of waiting for post-dated cheques (30- 120 days) to clear while
letting businesses concentrate on completing their transactions.
Finance against Trust Receipts (FATR)
Financing against Trust Receipts enables our customers to honor
payments to their suppliers by letting the bank pay on their behalf without
reducing customer’s credibility.
The customer simply has to submit a Trust Receipt (TR)Letter which contains a statement of receiving goods on the Bank’s behalf and p
Subsequently, the Unit diversified its business activities in
different areas. At present, MCB Bahrain engages in the following
activities.
MCB Current Account
MCB Bahrain’s Current Account is structured to provide our customers
with transactional convenience and flexibility. Accounts are opened
in international currencies (USD/GBP/EUR) with a low minimum
balance.
MCB Savings Account
MCB Bahrain offers saving accounts in International currencies
(USD/GBP/EUR) to customers. It offers an attractive interest rate on
deposits while giving them the flexibility to use the funds for
transactional needs. It is an attractive option for customers that have a
high balance and a requirement for transactional flexibility.
Term Deposit
Term Deposits are available in international currencies
(USD/GBP/EUR). Customers can choose tenor based on their needs. It is
an attractive option for customers with short to mid-term investment
opportunities.
Syndicated Transactions
MCB Bahrain can participate in both Islamic and conventional
syndicated transactions. The branch participates in various regional
transactions for corporates, financial institutions, and sovereign
entities. Moreover, the bank is engaged in risk-sharing
transactions with other reputed banks in the region for
confirmation/discounting of trade instruments.
Loans and Advances
MCB Bahrain provides loans and trade facilities to its bilateral
clients. MCB Bahrain financed short-term or long-term funded
facilities to its clients. Also, the branch can structure project-specific
financing for its clients in the region.
Trade Finance
MCB Bahrain provides all types of funded & non-funded trade
finance facilities to its clients including all types of letters of
Credit, advising, confirmation, discounting of credit, documentary
collection, bill discounting, and issuance of bank guarantees.
Treasury
MCB Bahrain has been an active treasury investing in various fixed
income securities. The branch can invest in both Islamic and
conventional instruments. Our portfolio traded sovereign euro bonds,
International Sukuk, and Treasury bills. Bahrain branch can
provide plain-vanilla FX solutions to its trade clients. Quote for other
liquidity instruments such as SWAPS, short term borrowing/
placements, and forwards can be inquired from the
treasury front office.
MCB Islamic Bank Limited
Products and Services:
MCB Islamic Bank Ltd. offers a wide array of Halal and RIBA free Islamic
Banking products and services to meet the requirements of individuals and
businesses alike.
Deposit Products:
The Bank offers a wide variety of Current, Saving and
Term Deposit accounts such as the following:
Current
MCB Islamic Hidayat Current Account MCB Islamic Basic Banking Account
MCB Islamic Asaan Current Account
MCB Islamic Asaan Remittance Current Account MCB Islamic Asaan
Remittance Current Account
MCB Islamic Asaan Digital Current Account*
MCB Islamic Asaan Digital Remittance Current Account* MCB Islamic
Niswaan Current Account
MCB Islamic Freelancer Digital Current Account*
MCB Islamic Freelancer Digital Foreign Currency Current Account*
Saving
MCB Islamic Imaan Saving Account MCB Islamic Barkat Saving Account
MCB Islamic Asaan Current Account
MCB Islamic Barkat Saving Premium Account MCB Islamic Barkat Super
Saving Account MCB Islamic Asaan Saving Account
MCB Islamic Asaan Remittance Saving Account MCB Islamic Asaan Digital
Saving Account* MCB Islamic Shandaar Account
MCB Islamic Rozana Bachat Saving Account MCB Islamic Rozana Bachat
Saving Plus Account
MCB Islamic Rozana Bachat Saving Premium Account MCB Islamic Rozana
Bachat Super Saving Account MCB Islamic Atfaal Saving Account
MCB Islamic Niswaan Saving Account
MCB Islamic Freelancer Digital Saving Account*
MCB Islamic Imaan Foreign Currency Saving Account
MCB Islamic Freelancer Digital Foreign Currency Saving Account*
Term Deposits
MCB Islamic Na'mat Term Deposit MCB Islamic Na'mat Plus Term
Deposit
MCB Islamic Na’mat Premium Plus Term Deposit MCB Islamic
Aasoodgi Term Deposit
MCB Islamic Financial Institutions Term Deposit
MCB Islamic Na'mat Plus Foreign Currency Term Deposit
*These accounts are available for Resident Pakistani Individuals
only and can only be opened through the Bank’s available
customer digital on-boarding platform(s)
Digital Banking:
In order to meet growing needs of customers, MCB Islamic Bank
offers the following Digital Banking products and services:
Consumer Finance:
MCB Islamic Bank offers Halal and RIBA Free Housing Finance
(Rihayesh Finance) and Car Finance (MICAR) products to
provide Shari'ah compliant housing and vehicle financing
solutions to individuals. Under the ‘Mera Pakistan Mera Ghar
Scheme’, an initiative by the Government of Pakistan, MCB Islamic
Bank Limited is also offering Diminishing Musharakah based
Shari’ah compliant convenient and subsidized housing
finance options to its customers at affordable rates.
Microfinance:
For fulfilling the needs of growing small / micro businesses in
both Urban and Rural areas of Pakistan, the Bank offers Murabaha
Microfinance (Sharai Karobar) for men and women operating
small businesses in diverse sectors. Through this financing facility,
they can avail financing of up to PKR 500,000/-.
SME Financing:
MCB Islamic Bank offers Shari'ah Compliant financing
solutions for Small and Medium sized enterprises. These products
have been designed to cater to the specific needs of SME
industry. These products include Murabaha, Musawamah, Ijarah,
Diminishing Musharakah, Istisna, Finished Goods Financing, and
Commodity Salam.
The Bank offers following SME Banking services:
1. Short Term / Working Capital Financing
2. Medium / Long Term Financing
MCB Islamic Qadar Debit Cards MCB Islamic Phone Banking
MCB Islamic Internet Banking MCB Islamic Mobile App
SMS Notification Service MCB Islamic ATMs network
Loyalty & Alliances NIFT ePay
3. Trade Finance
4. Bank Guarantee
5. Risk participation arrangement with financial partners
6. SBP refinance schemes
7. ‘Prime Minister’s Kamyab Jawan Youth Entrepreneurship Scheme’ to enable
youth to avail affordable financing for establishing new business or strengthening an
existing one
8. Awareness sessions for SME Customers on financial and non-financial
advisory services with SMEDA, Chamber of commerce and trade associations.
Commercial Banking:
Commercial Financing segment focuses on building strong and long-lasting
relationships with its customers by delivering satisfactory Shari'ah compliant
solutions. To deliver excellent services, commercial financing segment facilitates
its valued customers by synergizing its specialized team's effort with bank's outreach across
the country for increased product servicing range for branch customers.
Commercial financing business offers following range of products to its customers:
• Trade based financing for import and export (funded & non-funded).
• Cash Management & Remittance services.
• Financing under SBP’s refinance schemes.
• Working capital financing.
• Medium & Long Term financing.
• Guarantees.
• Trade services without involving bank’s exposure.
Agriculture Financing:
MCB Islamic Bank is extending Agriculture financing to its customers by
leveraging existing financing channels.
Corporate Banking:
MCB Islamic Bank’s Corporate Banking team is focused on providing a range of diverse
financial services (including tailor made customer’s specific solutions) to
corporate clients (including multinational and public entities) by partnering with them
and building long-term sustainable relationships.
Our dedicated teams within Corporate Banking are situated in offices located in
Karachi, Lahore, Islamabad and Faisalabad. Our in-house expertise of product
specialists and Shari'ah scholars are well versed in providing Shari'ah- compliant
financing solutions to meet our customer's financing, trade, foreign exchange,
investment banking and various other business requirements in a hassle free,
effective and efficient manner across a diverse range of
industries.
Our Corporate Banking relationship teams in liaison with Product
Management & Shari’ah Structuring, Treasury, Cash Management,
Trade, Investment Banking and Consumer Banking departments
develop and deliver offerings that are used across diverse businesses.
The Bank offers a complete range / array of Shari'ah compliant
products for both Corporate and Commercial banking sectors which can
be classified as follow:
• Trade Services
MCB Islamic Bank also offers a range of import and export services to
effectively manage local and global supply chain needs of our customers
and provides them a competitive edge. These facilities extend for both
raw materials and fixed assets. Services that are offered under the
umbrella of Trade Finance includes:
i. Export Services
• Bills for Collection under Export
• Letter of Credit Advising & Confirmation services
• Currency Salam (Shari’ah compliant alternate for Export Bill Discounting)
• Islamic Export Refinance Scheme
• Pre-Shipment and Post-Shipment financing on Islamic modes of
financing
ii. Import Services
• Letter of Credit – Sight / Usance
• Advance Payment against Import
• Shipping Guarantee
• Open Account Payment
SBP Financing / Refinancing Schemes:
State Bank of Pakistan (SBP) offers various Financing / Refinancing
facilities to support industrial growth and exports with the aim to
promote the overall economic development of the country. These
schemes provide financing to targeted industries at subsidized rates
for increasing their production capacity and meeting their working
capital requirements. Moreover, SBP also introduced certain schemes to
support the industry with regards to the challenges being faced in post-
pandemic scenario. Accordingly, the Schemes available through MCB
Islamic Bank are:
• Islamic Export Refinance Scheme (IERS)
• Islamic Long Term Financing Facility (ILTFF)
• Islamic Refinance Scheme for Working Capital Financing
of Small Enterprises and Low-End Medium Enterprises (IWCF)
• Islamic Financing Facility for Storage of Agricultural Produce
(IFFSAP)
• Islamic Refinance Facility for Modernization of SMEs
(IRFMS)
• Islamic Financing Facility for Renewable Energy (IFRE)
• Islamic Refinance and Credit Guarantee Scheme for Women
Entrepreneurs (IRCGS-WE)
Liquidity Management / Treasury Products
• Mudarabah-based Acceptance / Placement
Under Mudarabah based acceptance and placement, special pool is created on
the basis of Mudarabah in which the partner (placement) will invest. Based on
the expected return, a profit sharing ratio will be agreed beforehand
for distribution of profit. The risk and rewards are shared as per the rules
of Mudarabah. Financial Institution(s) / investor(s) / customers will invest
(place funds) in the Musharakah based as sleeping partner(s) whereas MCB
Islamic Bank (which accept investment) will act as a working partner (and vice
versa).
• Musharakah-based Acceptance / Placement
Under Musharakah based acceptance and placement, special pool is created
on the basis of Musharakah in which both the partners will invest. Based
on the expected return, a profit sharing ratio will be agreed
beforehand for distribution of profit. The risk and rewards are shared as per
the rules of Musharakah. Financial Institution(s) / investor(s) / customers will
invest (place funds) in the Musharakah based as sleeping partner(s) whereas
MCB Islamic Bank (which accept investment) will act as a working partner (and
vice versa).
• Wakalah-based Acceptance / Placement
Under Wakalah based acceptance and placement, special pool is created on
the basis of Wakalah in which the Principal (placement) will invest,
whereas the Agent (acceptance) will invest / manage the funds and is entitled to
Agency Fee as per terms of Wakalah Agreement. The risk and rewards will be
borne by the Principal.
• Foreign Currency Transaction – Ready & Forward
Islamic Banks are also involved in foreign currency transactions whereby
they either buy foreign currency in exchange of local currency or vice versa.
These transactions are necessary to both accommodate the exporters’ and
importers’ businesses as well as to secure the risk of the bank against foreign
exchange (FX) rate fluctuations. There are two type of foreign
currency transaction:
1. Ready Transaction – Deal Date and Maturity Date are same.
2. Forward Transaction – based on Wa’ad (unilateral Promise) If the Deal
Date & Maturity Date are different, then the transaction will be considered as
forward as per the rules of Shari’ah.
Corporate Information
Board of Directors
Audit Committee:
Chief Financial Officer:
Company Secretary (Acting):
Auditors:
Legal Advisors:
Registered /Principal
Office:
Contact us:
Registrar’s and Share

Registration Office(s):
Board of
Directors
ate Information
Mian Mohammad Mansha Chairman
Mr. S. M. Muneer Vice-Chairman Director Director Director Director Director Director
Mr. Muhammad Tariq Rafi Mian Umer Mansha Director Director Director Director
Mrs. Iqraa Hassan Mansha Mr. Muhammad Ali Zeb President & CEO
Mr. Mohd Suhail Amar Suresh bin Abdullah Mr.
Yahya Saleem
Mr. Salman Khalid Butt Mr. Masood Ahmed Puri Mr.
Shahzad Hussain
Mr. Shariffuddin Bin Khalid Mr. Shoaib Mumtaz
Mr. Shahzad Hussain Chairman Member Member Member

Mian Umer Mansha
Mr. Muhammad Ali Zeb Mr. Shariffuddin Bin Khalid
Mr. Hammad Khalid
Mr. Farid Ahmad
M/s. A.F. Ferguson & Co. Chartered Accountants
M/s. Khalid Anwer & Co. Advocates & Legal

Consultants
MCB Building, 15-Main Gulberg,
Jail Road, Lahore, Pakistan.

UAN: + 92 42 111 000 622E-mail: investor.relations@mcb.com.pk Visit us: www.mcb.com.pk
Head Office:
M/s. THK Associates (Pvt.) Limited

Plot No. 32-C, Jami Commercial Street 2, D.H.A.,
Phase VII, Karachi, Pakistan.
Branch Office:
M/s. THK Associates (Pvt.) Limited Siddique Trade
Centre,
Office No. PL-29, PL Floor,
72 Main Boulevard Gulberg -2, Lahore, Pakistan.
rman Director Director Director Director Director Director
irector Director Director
& CEO
Member Member Member

Mian Mohammad Mansha
Chairman
Mian Mohammad Mansha started his career at the age
of 24 as the CEO for Nishat Mills Limited. At present, the business
group is one of the leading and most diversified in South East Asia,
having presence in Textile, Cement, Insurance, Banking, Financial
Services, Power Generation, Hotel & Hospitality, Dairy, Paper
Products, Retail Commerce, Real Estate, Agriculture, Aviation and
Automotive sectors. It operates in various countries across the
globe including Sri Lanka, Azerbaijan, UAE, USA, Hong Kong and
Bahrain. The Nishat Group is one of the largest private sector
employers, exporters and tax contributors in Pakistan.
Mr. Mansha has served as Chairman of MCB Bank, after its
privatization, from 1991 to mid-1995 and then from 1997 till date.
Presently, he is also a member of the Board’s Human Resource &
Remuneration Committee, Business Strategy & Development
Committee and Committee on Physical Planning &
Contingency Arrangements at MCB Bank Limited. Previously, he
was associated with Punjab Mineral Company (Pvt) Limited, Civil
Aviation Authority, Pakistan International Airlines, Board of
Investment, Punjab Board of Investment & Trade, Pakistan
Industrial Development Corporation, Commonwealth Business
Council UK, Int’l Advisory Board Babson College USA, National
Management Foundation, Textile College Faisalabad and
Government College of Faisalabad. He has also served as the
Chairman for All Pakistan Textile Mills Association (APTMA) and
APTMA, Punjab.
Mr. Mansha is currently serving on the Board of the
Atlantic Council and is the Chair of the British Asian Trust’s Advisory
Council in Pakistan.
Mr. Mansha is a committed philanthropist and provides support to a
number of causes, such as healthcare, education, sustainable
tourism, sports, poverty alleviation and social uplift. He has
provided financial assistance and support to the Punjab Institute
of Cardiology, Children’s Hospital & The Institute of Child Health in
Lahore and Saleem Memorial Trust Hospital, besides supporting
Government of Punjab in their fight against COVID-19.
Pakistan’s Civil Award, the Sitara-e-Imtiaz was conferred upon
him in 2004 for his contributions to industrial development of
Pakistan.
Other Directorships:
• MCB Non-Bank Credit Organization, CJSC, Azerbaijan.
S. M. Muneer
Vice Chairman
With experience in sectors ranging from Tanneries,
Textiles and Banking, Mr. Muneer is a consummate
industrialist and a certified director. He has been awarded
with The Best Export Performance trophy by the Federation of
Pakistan Chamber of Commerce & Industry (FPCCI), the Gold
Medallion Award by the International Export Association, UK
and the Best Businessman of the Year Award by
Federation of Pakistan Chamber of Commerce & Industry
(FPCCI). He is also a former President of FPCCI.
In addition, he has received the ‘Sitara-e-Isaar’ and the ‘Sitara-
e-Imtiaz’ in 2006 and 2007 respectively by the President of
Pakistan in recognition of his outstanding public services for the
cause of humanity. His contributions and achievements go
beyond the economic sphere and include education as well as
health-care sectors. He was awarded an Honorary Ph.D.
degree (doctorate of philosophy) in January, 2009 by the Governor
of Sindh. He has also been appointed as a member of the
Advisory Board of Citizen Police Laison Committee (CPLC) by
the Honourable Governor Sindh.
Mr. S. M. Muneer also serves as member of Board of various
educational institutions, such as Institute of Business
Management and Greenwich University, Karachi, Din College,
Chiniot, College of Business Management, Karachi and
Institute of Behavioral Sciences (IBS), Karachi and
Professional Education Foundation. He is also a member of
Advisory Council of Institute of Business Administration (IBA).
He is on the Board of Shaukat Khannum Memorial Trust,
Lahore, The Kidney Centre Post Graduate Training Institute and Fatimid
Foundation. He is Patron-in- Chief, Korangi Association of Trade and Industry
(KATI), Kashif Iqbal Thalassemia Care Centre, Trust (KITCC). Mr. Muneer is the
Chairman of Chiniot Anjuman Islamia, running many hospitals, maternity
homes, schools and colleges in Karachi, Faisalabad and Chiniot. He is also
the Chairman of Husain Foundation (a not-for- profit organization working for
improvement of cricket in Pakistan). He is also on the boards of Make-a-Wish
Foundation, Legend Trust and is MCB’s Nominee on the Board of Arabian Sea
Country Club.
Mr. S. M. Muneer was awarded “Life Time Achievement Award” by the President
of Pakistan, in 2012, and was also awarded Life Time Achievement Award in
the same year in the City of Markham (Canada) by its Mayor Mr. Frank Scarpitti in
the presence of members of the Parliament. He has also been awarded Who’s
Who recognition of Achievement Award in the field of Trade Politics by the
National Council of Who’s Who Pakistan in Karachi on December 29, 2018.
• Din Textile Mills Limited;
• Din Leather (Pvt) Limited;
• Din Farm Products (Pvt) Limited;
• Din Industries Limited;
• Din Global Investments Inc.
Muhammad Tariq Rafi
Director
Mr. Tariq Rafi is the Chairman of Siddiqsons Group and is a recipient
of the coveted Civil Award Sitara-e-Imtiaz. He was awarded the
prestigious Best Businessman award for the year 1999 and 2012, best
Export Trophies between years 1980 to 2005. Mr. Tariq Rafi has been
awarded the Privilege Card by the Prime Minister of Islamic
Republic of Pakistan for being one of the top tax payers. He is
also the Honorary Consul General of Republic of Serbia.
He is on the board of MCB Bank since its privatization and presently
is the member of Board’s Write-off & Waiver Committee.
• Siddiqsons Limited;
• Siddiqsons Tin Plate Limited;
• Siddiqsons Energy Limited;
• TSM Mining (Pvt) Limited;
• Central Depository Co. of Pakistan Limited.
Mian Umer Mansha
Director
Mian Umer Mansha was co-opted as a Director on the Board of MCB
Bank in November 1997 and served till September 2007. Then he was
elected as a Director in the Bank’s 61st AGM held in March, 2009.
Presently, at MCB Bank he is the Chairman of the Board’s Business
Strategy & Development Committee, Information Technology
Committee, Committee on Physical Planning & Contingency
Arrangements and Write-off & Waiver Committee and is also a
member of Audit Committee and Risk Management & Portfolio Review
Committee.
In addition, he has been serving on the board of various other
businesses. Mr. Umer received his Bachelor’s degree from Babson
College, Boston, USA.
• Nishat Mills Limited;
• Adamjee Insurance Company Limited;
• Adamjee Life Assurance Company Limited;
• Nishat Hotels & Properties Limited;
• Nishat Developers (Pvt) Limited;
• Nishat Dairy (Pvt) Limited;
• Nishat (Raiwind) Hotels and Properties Limited;
• Nishat Agriculture Farming (Pvt) Limited;
• Hyundai Nishat Motor (Pvt) Limited;
• Nishat Agrotech Farms (Pvt) Limited;
• Nishat Sutas Dairy Limited;
• National Textile Foundation.
Iqraa Hassan Mansha
Director
Mrs. Iqraa Hassan Mansha has more than 13 years diversified
professional experience in Hotel Industry. She received her
B.Sc. degree in International Politics from London School of
Economics and M.Sc. degree in International Relations from the
University of London School of Oriental and African Studies
(SOAS).
She is serving in the capacity of Executive Director of Nishat Hotels
and Properties Limited. She is also serving as Director on the
Board of the following companies:
• Nishat (Raiwind) Hotels and Properties Limited;
• Nishat Real Estate Development Company (Pvt) Limited;
• Emporium Properties (Pvt) Limited.
Muhammad Ali Zeb
Director
Mr. Zeb is currently the CEO and Managing Director of Adamjee Insurance
Company Limited. He is a fellow member of the Institute of Chartered
Accountants of Pakistan and has over 24 years of diversified professional
experience in the fields of Finance, Insurance & Manufacturing. He also
served as council member of Insurance Association of Pakistan and Pakistan
Insurance Institute. Insurance Association of Pakistan elected him as the
Chairman for the year 2014 in terms of its Constitution.
He was co-opted as a Director on the Board of MCB Bank in June
2013. At MCB Bank, presently he is Chairman of the Board’s Risk
Management & Portfolio Review Committee and a member of Board’s Audit
Committee, Human Resource & Remuneration Committee, Compliance
Review & Monitoring Committee, Committee on Physical Planning &
Contingency Arrangements and Write-Off & Waiver Committee.
• Adamjee Insurance Company Limited;
• Adamjee Life Assurance Company Limited;
• Nishat Sutas Dairy Limited.
Yahya Saleem
Director
After graduating from the Lahore University of
Management Sciences (LUMS), Mr. Yahya Saleem joined the
family business as director of the Nishat Chunian Group with
setting up a spinning mill in 1990. The company has since
diversified into weaving, home textile, power generation and
entertainment sectors. NCL ranks amongst the top 5 textile
companies in Pakistan.
The group ventured into the power business in 2007 with a 200
MW Independent Power Plant (IPP), Nishat Chunian Power Ltd. The
IPP provides electricity to the national grid. Both the companies are
listed on Pakistan Stock Exchange.
Together with his family, he has set up a Trust which is in
memory of Sheikh Mohammad Saleem and has initiated setting
up of a 200 bed tertiary care not-for- profit hospital in Lahore.
The hospital will be built to state of the art international standards
and will provide subsidized health care to the under privileged
section of the city.
In 2015 he started a company by the name of NC Trading
USA that is a Cotton trading company based in USA and actively
sells US cotton to the leading textile mills in Pakistan.
In 2019, he was appointed as CEO and Director of NC
Entertainment Private Limited which owns two Multiplexes,
widely known as “Universal Cinemas”, including largest multiplex
in Pakistan.
Mohd Suhail Amar Suresh Bin His is a Fellow of the Malaysian Institute of Management, an As
Institute of Chartered Bankers Association and a Chartered B
Abdullah Asian Institute of Chartered Banker. He holds a Master of B
Director Administration from Charles Sturt University, Australia and an A
Mr. Suhail has over 30 years of combined global experience Management Program from Harvard Business School, Boston, U
in the telecommunications and financial services sector
specialising in IT architecture, systems and application
development, regional implementation and business development.
His passion in technology drives him to effectively utilise
technology as a competitive advantage for enhanced
customer experience.
Mr. Suhail is currently the Group Chief Technology Officer for
Maybank, Malaysia’s largest Financial Services Institution.
His previously held positions include Managing Director of Bank
Negara Malaysia’s wholly-owned subsidiary Malaysian Electronic
Clearing Corporation Sdn Bhd (MyClear) and Group Managing
Director of Malaysian Electronic Payment System Sdn Bhd
(MEPS).
Presently, Mr. Suhail is a Director on the Board of MCB Bank
Limited and a member of the Board’s Business Strategy &
Development Committee, Risk Management & Portfolio Review
Committee and Information Technology Committee. Other
directorships include Maybank Shared Services Sdn Bhd, MBB
Labs Pvt. Ltd. and Technology Park Malaysia Corporation, Sdn.
Bhd.
Notable awards received include CIO Excellence Award
2016 by PIKOM, Bank Technology Leadership Achievement in
Asia Pacific by The Asian Banker, 2017 and in December 2021,
he was ranked as the top 3 CIOs in ASEAN – amongst the
prestige CIO75 club awarded by (IDG) CIO.com.
Shahzad Hussain Masood Ahmed Puri
Director Director
Salman Khalid Butt
Director
Mr. Salman Butt is an accomplished international business
executive and ex-banker. He is currently a Dubai, U.A.E. based
Entrepreneur.
Mr. Salman Butt started his career with Citibank N.A. in 1985 and worked
for 20 years as an international banker with Citibank N.A. and Samba
Financial Group, holding several senior positions in Corporate and
Investment Banking in Pakistan, Hong Kong, UK, Egypt and Saudi
Arabia.
Mr. Salman Butt joined Orascom Construction Industries, Egypt
(OCI Egypt) as Group CFO in 2005. OCI Egypt was a leading
Egyptian multinational listed on Cairo Stock Exchange and involved in
Construction, Fertilizers and Cement operations. In 2013, OCI Egypt was
re-domiciled as OCI N.V. Netherlands and listed on Amsterdam Stock
Exchange, where he continued as Executive Director and Group CFO
from 2013 to 2017.
Mr. Salman Butt holds Masters of Business Administration
degree from the University of Texas at Austin, Texas, U.S. and
B.Sc. Industrial Engineering degree from Middle East Technical
University, Ankara, Turkey.
His is a Fellow of the Malaysian Institute of Management, an Associate of the Asian
Institute of Chartered Bankers Association and a Chartered Banker from the
Asian Institute of Chartered Banker. He holds a Master of Business
Administration from Charles Sturt University, Australia and an Advanced
Management Program from Harvard Business School, Boston, USA.
Masood Ahmed Puri
Director
After passing the final exam of England Institute
of Chartered Accountants, i.e., The Institute of Chartered
Accountants in England and Wales (ICAEW), Mr. Shahzad Hussain
returned to Pakistan from UK, in early 1980s. In Pakistan, he
became a member of the Institute of Chartered Accountants of
Pakistan i.e. ICAP. Later, he was elected as a member of its Council
for a term of four years and also served as Vice President
(North), where he chaired the ICAP’s Discipline Committee,
reporting to the Council.
In 1980, after serving briefly in SNGPL, he joined A. F. Ferguson
and Co., a network firm of Price Waterhouse Coopers (PwC). In
early 1990’s he was admitted to partnership and served the
firm in Audit, Tax and consultancy. In 2003, he was made Partner
In-Charge of Lahore Office, where he served until his retirement in
2015.
He has vast experience in Audit, Tax practice and in
consultancy. He headed many assignments, including Asian
Development Bank funded assignment for Punjab Government
Resource Mobilization, where he gained considerable
experience in Provincial Government organization structures and
procedures in various fields.
Mr. Masood Ahmed Puri is a multifaceted and
accomplished senior executive with competencies in strategic and
business planning, risk management and sound decision-making. He
is a CEO and owner of different conglomerates in the field of
logistics, shipping, supply chain, restaurants and textile within the GCC
region for almost 45 Years. He started his career with Vegetable Ghee
Industry in Pakistan but later on switched to logistics and shipping in the
year 1976. He was hired as General Manager Finance in a logistics
company in Saudi Arabia from where he took off and managed the overall
operations of the Company. One after another, he kept on developing
new businesses in the same field as well as diversified into textiles and
restaurants all within the GCC region. Overall, he carries immense
experience and exposure in various fields such as finance,
corporate strategy, management, operations and most importantly on
business start-ups.
Shariffuddin bin Khalid
Director
Mr. Shariffuddin Khalid was appointed as an
Independent Non-Executive Director of Maybank on June 14,
2018. He also serves as Chairman of the Audit Committee and
member of the Compliance Committee and Sustainability
Committee of the Board.
He is a Fellow Member of the Chartered Institute of
Management Accountants, United Kingdom. He has over 30
years’ experience in the banking and corporate sector. He had
served in key positions in the corporate services, business
development, corporate communications and human resource
functions.
He was part of the pioneer management team tasked with the
establishment of Pengurusan Danaharta Nasional Berhad
(“Danaharta”) during the 1998 Asian financial crisis. He
served as General Manager, Communications and Human
Resource, Danaharta, from its establishment in 1998 until 2005.
He joined Bank Negara Malaysia (BNM), the Malaysian Central
Bank and banking industry regulator in 2008, as the pioneer
Director of the Malaysia International Islamic Finance Center. In
this position, he was responsible for planning and execution of
strategies to position and brand Malaysia as an international
Islamic financial center. He spent nearly 10 years at BNM and his
final position was Director, Strategic Communications. This
entailed the provision of strategic communication advice to the
BNM Governor and senior leaders, planning and execution of
major media and PR campaigns as well as Parliamentary
responses and all media relations and e-communications work.
Shoaib Mumtaz
President & CEO
Mr. Shoaib Mumtaz is the President & Chief Executive Officer of MCB Bank Limited. He is a seasoned professiona
twenty-nine years of experience in the Industry. After having graduated from the National University (U.S.), he started his pr
MCB Bank Limited and had progressed within the Bank to senior strategic level positions since 1992.
Mr. Mumtaz has comprehensive managerial work experience and excelled in various areas including Branch Ope
Risk Management, Corporate Finance, and International Banking.
Before his elevation as President & Chief Executive Officer of MCB Bank Limited, Mr. Mumtaz was leading the Bank’s
Corporate Banking and its International operations.
Mr. Shoaib Mumtaz also serves as Chairman Board of

Trustees of MCB Employees Foundation.
His current directorship within the Maybank Group
includes Maybank (Cambodia) Plc and Maybank Islamic Bhd. Currently he also sits
on the Board of Marine & General Berhad, a public company listed on the Main
Market of Bursa Malaysia.
Executive Officer of MCB Bank Limited. He is a seasoned professional Banker with over
try. After having graduated from the National University (U.S.), he started his professional career at
n the Bank to senior strategic level positions since 1992.
erial work experience and excelled in various areas including Branch Operations, Credit &
d International Banking.
Executive Officer of MCB Bank Limited, Mr. Mumtaz was leading the Bank’s Domestic
perations.
Board of
Organizational
Structure
Chairman /
Board of Directors
President &
CEO
Retail Compliance &

Banking Controls
Group Group
Legal Affairs Group Risk Management Group
Operations Group Human Resources Management Group
Information
Technology
Group
Capital Markets Special Assets Special Assets

Division Management Consumer Management Corporate
& Retail Division & Commercial
Division
Audit
Committee
Audit & RAR
Group

Corporate
Affairs Division
Consumer & Digital

Banking Group
Financial Control
Group
Security &
Marketing Group
Treasury & Forex

Group

Corporate Finance &
International
Banking Group
Oversight &
Monitoring Group

- - - - Administrative Reporting
––––– Functional Reporting
Leadership
Team
Front Row (Left to Right): Farid Ahmad, Malik Abdul Waheed, Shoaib Mumtaz
Centre Row (Left to Right): Salman Y. Zaidi, Muhammad Ali, Shahzad Ishaq
Back Row (Left to Right): Muhammad Haris Hasan, Usman Hassan, Muhammad Nauman Chughtai
Front Row (Left to Right): Zargham Khan Durrani, Hassan Nawaz Tarar, Natasha Ahmed
Centre Row (Left to Right): Hammad Khalid, Adnan Rashid, Kashif Ali
Back Row (Left to Right): Abrar Aleem, Muhammad Farooq Wasi, Omair Safdar, Syed Mudassar Hussain Naqvi
nizational
cture
Chairman /
Board of Directors

Reporting
ting
ership
Farid Ahmad, Malik Abdul Waheed, Shoaib Mumtaz
: Salman Y. Zaidi, Muhammad Ali, Shahzad Ishaq
Muhammad Haris Hasan, Usman Hassan, Muhammad Nauman Chughtai
: Zargham Khan Durrani, Hassan Nawaz Tarar, Natasha Ahmed
t): Hammad Khalid, Adnan Rashid, Kashif Ali
Abrar Aleem, Muhammad Farooq Wasi, Omair Safdar, Syed Mudassar Hussain Naqvi
Other Senior
Management
Tahir Riaz
Country General Manager, Sri Lanka
Syed Faheem Ahmed
Country Manager, Bahrain
Entity Credit
Rating
Long Term Short Term
AAA A1+
ment
Tahir Riaz
ntry General Manager, Sri Lanka
Aamir Khanzada
Country Manager, UAE
ty Credit
g
m Short Term
A A1+
Corporate Profile
of the Bank
MCB Bank is one of the oldest banks of Pakistan, incorporated in private sector in 1947. It was nation
and privatized in 1991. MCB Bank’s major shareholding is owned by Nishat group a prominent business conglom
diversified interests in Textiles, Cement, Banking, Insurance, Power Generation, Hotel Business, Agriculture, Da
Manufacturing and Paper Products. To enter in international capital markets, the Bank launched its Global Depo
(GDRs) in 2006. It was the first Pakistani Bank that got its GDRs listed on the London Stock Exchange. In 2008,
into a strategic partnership with Maybank, Malaysia, which owns 18.78% stake in MCB through Maybank Intern
(Labuan) Berhad. In 2017, Fullerton Financial Holdings (International) of Singapore through Bugis Investme
Pte Ltd acquired 5.49% stake in MCB under merger scheme of NIB Bank with and into MCB Bank Limited. MCB
Pakistani Bank which incorporated a wholly owned Islamic Banking subsidiary, MCB Islamic Bank Limited,
requirements of a significant segment of society for financial solutions that conform to Shariah rulings and dem
confidence in the potential of the Islamic Banking industry in the country.
The Bank operates a strong and vast network of over 1400 Branches and over 1450 ATMs in Pakistan and 11 b
with a footprint in UAE, Bahrain and Sri Lanka. With a customer base of over 7 million, MCB leads the banking &
services sector in Pakistan and customers across the globe have 24/7 access to MCB Bank via our World Class
The Bank on consolidated basis is operating the 2nd largest network of more than 1,600 branches in Pakistan. T
highest local credit ratings of AAA / A1+ categories for long term and short term respectively, based on PACRA
June 23, 2021.
Subsidiaries
Holding: 100%
Profile: Objective of the Bank is to carry on Islamic Banking
Business in Pakistan in accordance and in conformity
with the principles of Islamic Shari'ah and in accordance
with regulations and guidelines of the State Bank of Pakistan.
MCB - Arif Habib Savings & Investments Limited
Holding: 51.33%
Profile: Asset management, investment advisory, portfolio
management, equity research and underwriting.
MCB Non-Bank Credit Organization Closed Joint Stock
Company
Holding: 99.94%
Profile: It leases various types of industrial equipment,
public transports, real estate and retail auto.
Financial & Management Services Pvt. Limited
Holding: 95.90%
Profile: The Company is in dormant status and
transferred to MCB from Ex. NIB under merger scheme.
The Bank’s investment in the company is fully provided.
Chairman’s Review
I am pleased to present this report to the shareholders of MCB Bank Limited on the effectiveness of the role playe
and overall performance of the Board of Directors in achieving Bank’s strategic objectives.
The Board set the Bank’s strategic aims to uphold and oversee the implementation of our vision, mission and co
demonstrated high standards of business and professional conduct in supervising and managing the affairs of th
the year, the Bank conducted an in-house performance evaluation of the Board as a whole, its Committees, the
President & CEO and Individual Directors. The overall rating of the Board is highly encouraging, particularly in re
composition, expertise, effective risk management, adequate system of internal controls and audit function. In 20
evaluation was made by external independent evaluator, M/s Pakistan Institute of Corporate Governance (“PICG
independent external evaluation is required once every three years.
The Board has always focused on the preservation of the best interests of the Bank’s shareholders and
maintain a balance between regulatory obligations and operational requirements. As part of this effort, the Board
structured Committees are in place, with each one having well- defined objectives and appropriate Terms of Ref
performing their respective roles effectively and efficiently.
Having an effective Board and professional management team is of vital importance, especially given the prevai
macroeconomic environment which is still in a state of recovery due to the enduring pandemic. While the 2nd an
COVID-19 brought unique challenges, which have been devastating for countries around the globe, Pakistan far
due to prudent and proactive policy measures followed by a managed vaccination drive. At MCB Bank, we supp
government’s vaccination efforts and are proud to state that all Bank employees are now vaccinated.
It is the hallmark of the MCB Bank team to rise to the challenge and demonstrate fortitude & resilience in the fac
Bank posted its highest ever Profit Before Tax of PKR 51.989 Billion in 2021 and continued its trend of declaring
dividend per share in Pakistan’s banking industry. This is indicative of the unwavering trust of our customers and
our investors and shareholders.
At MCB Bank, we are in a constant state of self-reflection, self-improvement and evolution, be it in our products
management team or the way we conduct our business. The Bank has taken measured steps towards the dig
transformation of our operations and service delivery. From the introduction of a new omni-channel digital b
MCB Live, to providing branch staff with digital solutions to better serve our valued customers, we are striving to
stakeholders with agile, modern and innovative financial solutions that provide convenience and enhance their b
experience with MCB Bank.
2022 will be yet another milestone year for the Bank, as it is the year that we commemorate our 75th Anniversar
with the 75th Anniversary of Pakistan from whose success we derive our own. We are confident that our best is
with our industry leading service quality and our focus on innovation and convenience, we are steadfast in our d
strive for excellence and deliver to our stakeholders.

Chairman
MCB Bank Limited
President’s Review
2021 was another year of extraordinary global instability, presenting a mixed bag of optimism and challen
recovery from COVID-19 across the globe. While the vaccines continued to offer improved immunity, the effect of
global economy continued to wreak havoc especially in the developing world as they struggled to balance budgets
to work towards economic growth and offer relief to those affected. The impact of the pandemic has touched so m
this period, yet has shone a bright light on our resilience as a community. As we close out this financial year, we a
fortitude with which our Bank responded to the challenges, keeping a strong focus on our customers, employees,
stakeholders.
Despite all the tribulations, MCB Bank has again demonstrated itself to be one of the best banks in the country wit
resilience, operational excellence, and as a responsible corporate citizen. Our bank’s strength and stability are an
fundamental insight - resilience and sustainability go hand in hand. Our focus on customers, our strong risk and fin
and our diversified business model has helped us produce another year of outstanding financial performance in te
and asset base growth despite navigating the prolonged pandemic generated pressures; particularly a volatile inte
environment and high inflation.
The Bank reported its highest Profit Before Tax of Rs. 51.99 billion (+8%) and declared a 190% cash dividend for
continuing with its offering of the highest dividend per share in the banking sector. Assets of the Bank grew by 12%
Rs. 1.97 trillion. Strong growth in average current deposits kept compression in NIM at a minimal despite a 19% d
average policy rate. The fee, commission, and brokerage income registered a growth of 14% whereas dividend an
exchange revenue streams increased by 86% and 48% respectively. Despite sustained inflationary pressures, the
to manage an efficient operating expense base with a moderate increase of 8% over last year. Return on Assets
Equity were reported at 1.65% and 19.11% respectively.
Our lending growth has been the highest in our Bank’s history. The gross advances of the Bank registered historic
122 billion (+24%), which was above industry growth level, to close the year at Rs. 636 billion. The corporate lend
Rs. 106 billion (+31%) whereas the consumer loan portfolio attracted significant interest and grew by Rs. 9.5
on the back of significant activity in the construction and auto segments. In 2021, several strategies were adopt
setting of group limits for large corporates, limit review exercise, and Risk Asset Acceptance Criteria (RAAC) to str
credit underwriting standards and risk appetite.
The Bank successfully advised and arranged one of the largest Syndicated Term Finance Facilities for Pa
Ltd. of PKR 21 Billion. During the year, MCB Bank attracted home remittance inflows of USD 3.527 billion to furthe
position as an important contributor to the national cause of improving flow of remittances through banking channe
leading banks in cash management, MCB Bank crossed the annual throughput milestone of Rs. 3.0 trillion in 2021
Achieving growth in a no-cost current account base remained a key strategic objective of the Bank. Non-remunera
grew by 15% to close at Rs. 563 billion; improving their mix in total deposits to 40% in absolute terms as o
2021. Current Account-Savings Account (CASA) concentration was reported at 93% whereas the total deposits of
9% to close out the year at Rs. 1,412 billion, demonstrating the loyalty of our customers, earned through sustained
quality services.
MCB Bank continued its participation in the State Bank of Pakistan’s policy measures to support the economy dur
offering loan deferment and/or loan rescheduling and offering liquidity in Rozgar Scheme. MCB also partnered
Bank to extend concessionary “Temporary Economic Refinance Facility” (TERF) for facilitation of investme
industrial projects, as well as, capacity expansion. Apart from relief measures, to propel the construction r
of the economy, the mandated program of Mera Pakistan Mera Ghar gained serious traction during the calendar
introduction of Roshan Digital Account was another key drive undertaken by the industry to facilitate our No
Pakistani segment. The inflows at MCB under the Roshan Digital Account (RDA) initiative summed up to approxim
million.
2021, targeted as the year of “History In The Making” in MCB’s Digital Platform journey, witnessed the launch of “
state- of- the- art platform for providing the next generation financial services. Initially, the Bank has enriched its d
the Retail segment which would be followed by a Corporate rollout.
The Bank successfully advised and arranged one of the largest Syndicated Term Finance Facilities for Pa
Ltd. of PKR 21 Billion. During the year, MCB Bank attracted home remittance inflows of USD 3.527 billion to furthe
position as an important contributor to the national cause of improving flow of remittances through banking channe
leading banks in cash management, MCB Bank crossed the annual throughput milestone of Rs. 3.0 trillion in 2021
Achieving growth in a no-cost current account base remained a key strategic objective of the Bank. Non-remunera
grew by 15% to close at Rs. 563 billion; improving their mix in total deposits to 40% in absolute terms as o
2021. Current Account-Savings Account (CASA) concentration was reported at 93% whereas the total deposits of
9% to close out the year at Rs. 1,412 billion, demonstrating the loyalty of our customers, earned through sustained
quality services.
MCB Bank continued its participation in the State Bank of Pakistan’s policy measures to support the economy dur
offering loan deferment and/or loan rescheduling and offering liquidity in Rozgar Scheme. MCB also partnered
Bank to extend concessionary “Temporary Economic Refinance Facility” (TERF) for facilitation of investme
industrial projects, as well as, capacity expansion. Apart from relief measures, to propel the construction r
of the economy, the mandated program of Mera Pakistan Mera Ghar gained serious traction during the calendar
introduction of Roshan Digital Account was another key drive undertaken by the industry to facilitate our No
Pakistani segment. The inflows at MCB under the Roshan Digital Account (RDA) initiative summed up to approxim
million.
2021, targeted as the year of “History In The Making” in MCB’s Digital Platform journey, witnessed the launch of “
state- of- the- art platform for providing the next generation financial services. Initially, the Bank has enriched its d
the Retail segment which would be followed by a Corporate rollout.
The Bank along with its wholly-owned Islamic Bank subsidiary is operating the 2nd largest network of branches
Pakistan. During the year, our Customer Base grew to 8.4 million accounts demonstrating our customer’s confiden
continued to offer accessible banking infrastructure for differently–abled persons to support equitable access to banking a
services. Strenuous training programs were conducted through our ‘Learning and Development Centers’ as emplo
and training remained a priority area.
Our strong financial position was reinforced through long and short-term credit ratings of AAA [Triple A] and A1+ [A one p
respectively, by PACRA. Our performance and customer focus earned us external recognition in many ways during 2
exceptional performance was recognized by the globally coveted Finance Asia’s Country Awards wherein MCB Bank
the “Best Bank in Pakistan” in 2021. The Annual report of MCB Bank was also adjudged 1st by the joint committee of the
Chartered Accountants of Pakistan & Institute of Cost and Management Accountants of Pakistan (ICAP/ICMAP) in the fin
category. MCB has won this award 11 times in the last 12 years, with 9 consecutive wins. For the very first time in 2021,
Report 2020 was also adjudged “Overall Best Corporate Report” across all industry segments.
The rise in tech- prone cyber-crime has heightened end-user fears of loss of data and money. We make no com
customer data security and remain engaged in raising awareness about cyber- security and malicious activity. The Bank
enforced and ensured compliance screening of every customer, vendor, and counterpart to safeguard its business practi
challenges of the current macroeconomic structure, intense pressure on volumes and cyber-attacks did not stop us from
role in the economic development of the country.
We maintain an ethical and diverse culture because we have leaders who set a clear compelling direction and
employees who work hard for the organization. At MCB we are building an inclusive organization to address the g
allow everyone an opportunity to fulfill their career aspirations and professional goals. All this is achieved through a syste
that enables two- way communications, programs that recognize high performance, and extensive trainings to develop a
into champions and champions into Leaders. This continuous development coupled with compensation and benefits, com
half of all operating expenses, shows that we highly value our employees.
Our results demonstrate that we have the right strategy and have the right talent in place to deliver consistent value for o
MCB is well-positioned to benefit from the transformation that is taking place in the banking landscape with rising interes
pressure on volumes, and exciting technology- driven developments. However, challenges are still ahead that drive us to
more responsive, and more innovative in serving our customers.
We have always believed that our team members are our most valuable resource and we want them to be with us for the
invest in them by offering competitive salaries, professional training and development, leadership opportunities, and by g
support they need to build a career, achieve their goals, and have the resources they need to improve their lives and the
families. I want to thank them for their hard work and dedication.
This year will mark our 75th Anniversary- a proud history of 75 years of service and commitment to our valued customers
our best to meet our customer’s expectations, as well as, of those of our shareholders, employees and regulators. The co
customers is our pride, and we are passionate to serve them with increased diligence and interest.
I would like to acknowledge the leadership of our Chairman, and Board of Directors for making 2021 yet another profitab
guidance. I am also grateful to our shareholders who continue to show their trust by investing in and recognizing us as a
services provider and a partner. We are committed to maintaining this trust in years to come with outstanding financial pe
work on further strengthening the culture of compliance to ethical, regulatory standards and reputational values.
Shoaib Mumtaz President & CEO MCB Bank Limited
66
e Profile
stan, incorporated in private sector in 1947. It was nationalized in 1974
olding is owned by Nishat group a prominent business conglomerate, having
Insurance, Power Generation, Hotel Business, Agriculture, Dairy, Auto
ernational capital markets, the Bank launched its Global Depositary Receipts
t got its GDRs listed on the London Stock Exchange. In 2008, the Bank entered
a, which owns 18.78% stake in MCB through Maybank International Trust
Holdings (International) of Singapore through Bugis Investments (Mauritius)
er scheme of NIB Bank with and into MCB Bank Limited. MCB is the first
ed Islamic Banking subsidiary, MCB Islamic Bank Limited, to meet
or financial solutions that conform to Shariah rulings and demonstrate our
ndustry in the country.
ver 1400 Branches and over 1450 ATMs in Pakistan and 11 branches overseas
h a customer base of over 7 million, MCB leads the banking & financial
the globe have 24/7 access to MCB Bank via our World Class Internet Banking.
nd largest network of more than 1,600 branches in Pakistan. The Bank enjoys
s for long term and short term respectively, based on PACRA notification dated
Associates
With reference to significant holding, the following entities are
associates of the Bank:
Adamjee Insurance Company Limited
Holding: 20%
Profile: The Company is engaged in the general insurance
business.
Euronet Pakistan (Private) Limited
Holding: 30%
Profile: To provide outsourcing services to banks and financial
institutions for Automated Teller Machine (ATM) network and
managed services for Point of Sales (POS) terminal networks.
’s Review
ers of MCB Bank Limited on the effectiveness of the role played by the Board
achieving Bank’s strategic objectives.
and oversee the implementation of our vision, mission and core values. It
essional conduct in supervising and managing the affairs of the Bank. During
ance evaluation of the Board as a whole, its Committees, the Chairman, the
erall rating of the Board is highly encouraging, particularly in respect to its
, adequate system of internal controls and audit function. In 2019, performance
luator, M/s Pakistan Institute of Corporate Governance (“PICG”), as
every three years.
ation of the best interests of the Bank’s shareholders and has strived to
and operational requirements. As part of this effort, the Board’s properly
having well- defined objectives and appropriate Terms of Reference;
ficiently.
gement team is of vital importance, especially given the prevailing
e of recovery due to the enduring pandemic. While the 2nd and 3rd waves of
been devastating for countries around the globe, Pakistan fared much better
owed by a managed vaccination drive. At MCB Bank, we supported the
state that all Bank employees are now vaccinated.
he challenge and demonstrate fortitude & resilience in the face of odds. The
PKR 51.989 Billion in 2021 and continued its trend of declaring the highest
This is indicative of the unwavering trust of our customers and confidence of
flection, self-improvement and evolution, be it in our products and services, our

iness. The Bank has taken measured steps towards the digital
elivery. From the introduction of a new omni-channel digital banking platform,
utions to better serve our valued customers, we are striving to provide our
ancial solutions that provide convenience and enhance their banking
nk, as it is the year that we commemorate our 75th Anniversary which coincides
success we derive our own. We are confident that our best is yet to come and
cus on innovation and convenience, we are steadfast in our determination to
s.
’s Review
nstability, presenting a mixed bag of optimism and challenges related to the
e vaccines continued to offer improved immunity, the effect of Covid on the
y in the developing world as they struggled to balance budgets, while continuing
those affected. The impact of the pandemic has touched so many throughout
ence as a community. As we close out this financial year, we are proud of the
enges, keeping a strong focus on our customers, employees, and other
monstrated itself to be one of the best banks in the country with strong financial
ible corporate citizen. Our bank’s strength and stability are anchored by the
o hand in hand. Our focus on customers, our strong risk and financial discipline,
oduce another year of outstanding financial performance in terms of profitability
nged pandemic generated pressures; particularly a volatile interest rate
s. 51.99 billion (+8%) and declared a 190% cash dividend for the year,
er share in the banking sector. Assets of the Bank grew by 12% over last year to
eposits kept compression in NIM at a minimal despite a 19% decline in the
erage income registered a growth of 14% whereas dividend and foreign
8% respectively. Despite sustained inflationary pressures, the Bank continues
a moderate increase of 8% over last year. Return on Assets and Return on
vely.
k’s history. The gross advances of the Bank registered historic growth of Rs.
h level, to close the year at Rs. 636 billion. The corporate lending book grew by
portfolio attracted significant interest and grew by Rs. 9.5 billion (+32%)
on and auto segments. In 2021, several strategies were adopted, including the
ew exercise, and Risk Asset Acceptance Criteria (RAAC) to strengthen our
e of the largest Syndicated Term Finance Facilities for Pak Telecom Mobile
ttracted home remittance inflows of USD 3.527 billion to further consolidate its
ause of improving flow of remittances through banking channels. As one of the
ssed the annual throughput milestone of Rs. 3.0 trillion in 2021.
remained a key strategic objective of the Bank. Non-remunerative deposits
ving their mix in total deposits to 40% in absolute terms as of December 31,
ncentration was reported at 93% whereas the total deposits of the Bank grew by
strating the loyalty of our customers, earned through sustained provision of
ank of Pakistan’s policy measures to support the economy during COVID-19, by

d offering liquidity in Rozgar Scheme. MCB also partnered with the Central
omic Refinance Facility” (TERF) for facilitation of investment in new
n. Apart from relief measures, to propel the construction related segments
kistan Mera Ghar gained serious traction during the calendar year. The
her key drive undertaken by the industry to facilitate our Non-Resident
oshan Digital Account (RDA) initiative summed up to approximately USD 216
g” in MCB’s Digital Platform journey, witnessed the launch of “MCB Live”; a-

eration financial services. Initially, the Bank has enriched its digital offerings for
orporate rollout.
e of the largest Syndicated Term Finance Facilities for Pak Telecom Mobile
ttracted home remittance inflows of USD 3.527 billion to further consolidate its
ause of improving flow of remittances through banking channels. As one of the
ssed the annual throughput milestone of Rs. 3.0 trillion in 2021.
remained a key strategic objective of the Bank. Non-remunerative deposits
ving their mix in total deposits to 40% in absolute terms as of December 31,
ncentration was reported at 93% whereas the total deposits of the Bank grew by
strating the loyalty of our customers, earned through sustained provision of
ank of Pakistan’s policy measures to support the economy during COVID-19, by

d offering liquidity in Rozgar Scheme. MCB also partnered with the Central
omic Refinance Facility” (TERF) for facilitation of investment in new
n. Apart from relief measures, to propel the construction related segments
kistan Mera Ghar gained serious traction during the calendar year. The
her key drive undertaken by the industry to facilitate our Non-Resident
oshan Digital Account (RDA) initiative summed up to approximately USD 216
g” in MCB’s Digital Platform journey, witnessed the launch of “MCB Live”; a-

eration financial services. Initially, the Bank has enriched its digital offerings for
orporate rollout.
ubsidiary is operating the 2nd largest network of branches across
8.4 million accounts demonstrating our customer’s confidence in MCB. We
erently–abled persons to support equitable access to banking and financial
hrough our ‘Learning and Development Centers’ as employee development
nd short-term credit ratings of AAA [Triple A] and A1+ [A one plus],

ocus earned us external recognition in many ways during 2021. The Bank’s
y coveted Finance Asia’s Country Awards wherein MCB Bank was declared as
MCB Bank was also adjudged 1st by the joint committee of the Institute of
Management Accountants of Pakistan (ICAP/ICMAP) in the financial sector
years, with 9 consecutive wins. For the very first time in 2021, the MCB Annual
eport” across all industry segments.
nd-user fears of loss of data and money. We make no compromise on
reness about cyber- security and malicious activity. The Bank has also
omer, vendor, and counterpart to safeguard its business practices. The
e pressure on volumes and cyber-attacks did not stop us from playing our due
e have leaders who set a clear compelling direction and engage

B we are building an inclusive organization to address the gender gap and
ons and professional goals. All this is achieved through a systematic hierarchy
ognize high performance, and extensive trainings to develop and turn workers
ous development coupled with compensation and benefits, comprising almost
our employees.
d have the right talent in place to deliver consistent value for our stakeholders.
hat is taking place in the banking landscape with rising interest rates, intense
elopments. However, challenges are still ahead that drive us to become faster,
mers.
most valuable resource and we want them to be with us for the long term. We
l training and development, leadership opportunities, and by giving them the
d have the resources they need to improve their lives and the lives of their
ation.
75 years of service and commitment to our valued customers. We will put in
f those of our shareholders, employees and regulators. The confidence of our
m with increased diligence and interest.
n, and Board of Directors for making 2021 yet another profitable year under their
nue to show their trust by investing in and recognizing us as a strong financial
taining this trust in years to come with outstanding financial performance, and
ethical, regulatory standards and reputational values.
MCB Overview
Branches Global Presence
1426 Domestic Branches across Pakistan (EPZ: 1) 10 International
branches in 3 countries
ATMs Market Share -

Over 1450 ATMs all across Pakistan Deposits
6.41% of Domestic Industry
Deposits
Market Share – Market Share –
Home Remittance Trade
11.40% 5.52%
Dividends Branch Network

Rs. 19/share. Highest dividend per share across industry 2nd highest branch network on group
basis (including MIB branches)
Customers
Over 8 million customer accounts
Market Share -
Advances
5.98% of Domestic Industry Advances
Credit Rating
Long Term - AAA
Market
Capitalization
2nd highest market capitalization in industry
Highlights 2021
PBT Non-Markup Income PAT
PKR 51.99 billion PKR 20.07 billion PKR 30.81 billio
(+8%) (+11%) (+6%)
Advances (Gross) Assets Investments
PKR 636 billion PKR 1,970 billion PKR 1,036 billio
(+24%) (+12%) (+2%)
Market Capitalization Winner of Best Bank in Winner of BCR - 20

PKR 182 billion Pakistan ICAP/ICMAP
(December 31, 2021) 2021 FinanceAsia’s (Banking Sector
Country Awards & overall)
ROA Deposits
1.65% PKR 1,412 billion
(+9%)
68
1
PAT
PKR 30.81 billion
(+6%)
Investments
PKR 1,036 billion
(+2%)
Winner of BCR - 2020 by

ICAP/ICMAP
(Banking Sector
& overall)
ROE
19.11%
Financial Performance 2011 - 2021
10 Years Trend - Rupees in Billion
1,411.9
1.970.5
Total Assets Deposits
1,289.5
CAGR
1,757.511.7% CAGR 11.1%
1,144.8
1,515.2 1,498.1
2.200 1.500
1,760 1,343.2
1,320
1.000 1,072.4
1,004.4
934.6
815.5
767.1
653.2 880
500
440
0
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 0
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
700 1,
600 Gross Advances 2 Investments
500 CAGR 9.8% 0 CAGR 12.6%
400 0
300 635.6 2
1, 2
200 0 0 1,035.5
1,015.9 0
100 1 546.8
0 1
540.0
513.6 9 515.1 0 9
8
0 748.8 749.4
2 2
0 0 0
367.7
1 6 1
322.5 322.3
8 0 8
0 268.2 262.4 249.9
4
2 2
0 0 0
1 0 1
7 2 7
0
0
2 2
0 0
1 1
0
2021 2020 2019
6 2018 2017 2016 2015 2014 2013 2012 2011 0
2021 2020 2019
6 2018 2017 2016 2015 2014 2013 2012 2011
Fund Based Income 2

N 2
CAGR 3.7% 0
o 0
80 1 1
70
71.3
5
n 5
60
50 64.0
2
M 20.1
2
40
a
59.6
0 18.1 0
30 1 1
16.7
4
46.0
r 49.3 44.5
4
43.8 43.5
2
42.7
k 37.9
40.9
2
0
1
u 0
1
3
p 3
2
I 2
20 0
1
n 5 0
1
10 0
0
2021
2
c 2
2 o 2
0
1 m 2
0
1
2020
1
e 0 2020 1
Profit Before Tax P C

2
1
CAGR 5.1% A
60
r G
50
52.0
o R
30.8
40
30 48.2 fi 9.5 29.0
20
10 40.1
t % 42.3 24.0
2
A 36.1 5 36.7
32.1
31.0 f 2 32.3 31.6 31.5
0
t 1
5
e 1
0
r
T
a
0
2021 2020 2019 2018 2017
x 2016 2015 2014 2013 2012 2011 0
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
C
Forward Looking Statement A

G
R
4.
7
%
3
5
3
0
2
5
2
0
1
5
1
0
5
The Annual Report of MCB Bank Limited carries forward looking statements in its different sections; since there are uncertainties related to the oc
events, these should be read in conjunction for decision making by the users of the Annual Report. Forward looking statements contain words such
anticipate, believe, seek, will, may, would, presume, assure, hope, so on and so forth. A forward-looking statement naturally addresses matters that
degrees, uncertain and may not happen. In most cases, a forward-looking statement is made in respect of Bank’s expected income, earnings, busine
horizontal expansion, cost structure, capital structure, dividends etc.
Pakistan’s Economic Outlook

For the fiscal year 2022, real sector growth is being projected to recede within the range of 4-5% as the risks emanating from the wave
variant persist and the domestic demand indicators witness moderation on the back of monetary policy tightening and fiscal consolidatio
undertaken by the Government of Pakistan for countering rapidly accelerating inflation and sustaining fiscal and external imbalances.
The external outlook continues to remain uncertain and largely dependent on the eventual path of possible economic and geopolitical scenarios
hand, the external account deficit could be larger if the recently witnessed resurgence in global economic activity and the on
between Russia and Ukraine keep the commodity prices inflated while on the other hand, the deficit could subside if the home rem
their traction, structural reforms boosting Pakistan’s export competitiveness materialize and the fiscal consolidation associated w
(Supplementary) Act has a faster and more pronounced impact on import/consumer demand than anticipated.
The recently completed 6th review under IMF’s extended fund facility (EFF) program bodes well for international confidence in Pakista
the government’s capability to tap international markets. However, the country still remains vulnerable to the possible flare-ups of the p
international financial conditions as well as delayed implementation of structural reforms, hence, further re-enforcing the need for timely and c
implementation of policy reforms to lay the ground for stronger and more sustainable growth.
MCB’s Future Outlook

Pakistan’s banking sector will continue to face some headwinds in 2022, on the back of slowing economic growth and rising interest rates impactin
assets. Considering the existing disruptions, complexities and uncertainties, the socio-economic and regulatory landscape will continue to transform
further exacerbating the challenges surrounding the operating environment.
Irrespective of these facts, the Bank is committed to delivering remarkable results to its investors for the year 2022. The Bank’s strategic plan, cent
pillars of customer centricity, geographical expansion, technology and cyber security and people development (among others), takes into considerat
operating and economic scenario and paves Bank’s future road map.
Enhancement
of digital Increase in
infrastructure current
deposit
MCB
Expanding
branch
Future Improve
asset quality
network & recovery of
NPLs
Development
of Human
capital
The outbreak of COVID-19 pandemic has further accentuated the need on banks to expedite digital adoption required for reshaping the b
architecture in Pakistan; the transformation is imperative to support enhanced customer experiences deducible from the adoption of advan
avenues. At MCB, our proactive stance to further augment branch outreach while sustaining parallel focus on creating secure digital and
banking channels, by leveraging emerging technologies, shall hold us in good stead for the digital age.
We would continue to improve our asset quality, increase low cost deposit base, inculcate operational efficiencies across the
diversify revenue streams through continuous enrichment of service suite and leverage cross sell business opportunities with corporate cl
to increase contribution from non-markup segment.
Credit appetite being a mainstream business line of the Bank, instigates us to avail all righteous credit extension opportunities
the defined risk appetite of the institution; while proactively monitoring watch listed portfolio of the bank to minimize any further
ensure that recoveries are made in line with the agreements.
On the investments side, the Bank is committed to optimally manage excess liquidity through strategic re-profiling of the
investment book in an evolving yield curve scenario.
We would continue to lead the market position through focused initiatives encompassing launch of innovative and customer cen
penetration of emerging markets, adoption of digital banking avenues and instilling effective cost management techniques. The Bank is a
developing a workforce for the ‘Digital Banking Age’ by attracting and retaining the right skillset and competence; hence, aligning it wit
business dynamics.
Driving customer centricity remains a key area of focus for the next year; we will direct investments towards empowering employees to d
service experience across all customer touch points. Also, in all our capacity and skills enhancement programs for the employees, we wil
emphasizing the need for the staff to serve customers as a means of consolidating our position as the most sought after bank in the indust
employees’ development and trainings would remain at the forefront of our strategic focus. We would acutely remain conscious in attrac
the best talent pool in the industry.
We are committed in maintaining our unique positioning as a diversified financial institution with a robust heritage and strong
through enriched service offerings and financially viable products tailored to meet requirements of our esteemed customers; hen
serve both our existing and next-generation customers in the coming years while simultaneously translating the underlying financial
entity into profits.
Key Projects to Support Future Performance
Details of Projects
Point of Sale procurement and deployment
Image base clearing operations
ATM go green optional receipt printing ON-US & OFF-US
QR code – acquiring & digital onboarding
Enterprise CRM solution
Implementation of Enterprise Workflow System
Development of domestic & NRP digital account opening on MCB Live
Launch of high end credit card variants
New HSM for debit and credit cards
Conversational banking
Simplify Platform for E-commerce acquiring
Enrichment of MCB Live Platform offering Corporate, Trade solutions
Deposits
CAGR 11.1%
1,144.8
1,049.0
968.5
781.4
696.8 688.3
632.3
545.1
491.2
2019 2018 2017 2016 2015 2014 2013 2012 2011
Investments
CAGR 12.6%
748.8 749.4
657.0
555.9 565.7
511.1
449.0
402.1
316.7
2019 2018 2017 2016 2015 2014 2013 2012 2011
18.1
16.7 17.2
16.2 16.6
12.9
11.2
9.2
8.1
25.5
24.0 24.3
22.5 21.9
21.4 21.5
20.7
19.4
2019 2018 2017 2016 2015 2014 2013 2012 2011

nt sections; since there are uncertainties related to the occurrence of future
Report. Forward looking statements contain words such as expect,
ward-looking statement naturally addresses matters that are, to certain
in respect of Bank’s expected income, earnings, business growth,
ange of 4-5% as the risks emanating from the wave of Omicron

of monetary policy tightening and fiscal consolidation measures
ion and sustaining fiscal and external imbalances.
ath of possible economic and geopolitical scenarios; on the one

surgence in global economic activity and the ongoing conflict
her hand, the deficit could subside if the home remittances sustain
erialize and the fiscal consolidation associated with Finance
d than anticipated.
m bodes well for international confidence in Pakistan and adds to

emains vulnerable to the possible flare-ups of the pandemic, tighter
ms, hence, further re-enforcing the need for timely and consistent
h.
wing economic growth and rising interest rates impacting quality of

mic and regulatory landscape will continue to transform rapidly; hence,
estors for the year 2022. The Bank’s strategic plan, centered on the key
eople development (among others), takes into consideration the evolving
to expedite digital adoption required for reshaping the banking services

tomer experiences deducible from the adoption of advanced e-banking
sustaining parallel focus on creating secure digital and alternative
ad for the digital age.
base, inculcate operational efficiencies across the entire spectrum,
erage cross sell business opportunities with corporate client relationships
to avail all righteous credit extension opportunities that fall within

ch listed portfolio of the bank to minimize any further infection and
ess liquidity through strategic re-profiling of the
encompassing launch of innovative and customer centric solutions,

ng effective cost management techniques. The Bank is also investing in
the right skillset and competence; hence, aligning it with the evolving
direct investments towards empowering employees to drive a pleasant

skills enhancement programs for the employees, we will continue
our position as the most sought after bank in the industry. To sum up,
gic focus. We would acutely remain conscious in attracting and retaining
nancial institution with a robust heritage and strong reputation

to meet requirements of our esteemed customers; hence, enabling us to
simultaneously translating the underlying financial strength of the
Quantitative Projections
Outlook
Deposit mobilization to exceed growth level achieved in 2021.
Net Interest Margin (NIM) to increase from the 2021 level.
Non Markup Income to achieve double digit growth.
Expenses growth to be contained in single-digits.
CET1 ratio to be adequately kept within prescribed regulatory

limits.
Minimizing credit infection and realizing recoveries in line with
contractual stipulations.
Constant / stable dividend payout to be maintained.
Uncertainties that could affect the Bank’s Resource, Revenues and Operations
All forward-looking statements are, by nature, subject to risks and uncertainties, many of which are beyond control. Major factors that can affect th
revenues and operations are given below:
Discount rate / Monetary Policy: Based on different assessment parameters, the State Bank of Pakistan may change the monetary policy rate. Any f
discount rate will initially have an adverse impact on Bank’s net interest income due to the repricing lag between earning assets and liabilities. How
stabilizes, the net interest margins will improve and have a positive impact on Bank’s profitability.
The impact of interest rate sensitivity on the banks profitability has been disclosed in note 45.2.4 of the financial
statements.
Inflation: Inflation is considered to be a key determinant of the policy rate change. Any uptick in inflation statistics will
have a material impact on the monetary policy stance along with other drivers.
DISCOUNT
RATE
POLITI
CAL
STABI
LITY
Key Risks Going Forward
Increased competitive landscape in the industry for mobilizing
deposits amidst low differentiation and switching costs; leading
to an inability to capitalize on the expected increase in industry deposit
base on the back of increasing interest rates.
Risk of slower than expected deposit mobilization and advances

growth; increase in net interest margin not realized in line with the
expected yield curve movements.
Risk of lower than anticipated growth as transactional volumes

decline and market activities slow down due to lowering domestic
demand and a resurgence in the spread of COVID-19 virus;
resulting in branch closures and reduced physical interaction with the
clients.
Risk of cost-push pressures emanating from currency devaluation

and higher commodity prices to translate into higher than expected
growth in expenditures.
However, the Bank remains committed to managing expenditures
through rationalization of discretionary spend and inculcation of
operational efficiencies through business process automation and
implementation of strong budgetary controls.
Higher Risk Weighted Assets (RWA’s).
Moderation in credit growth and increased risks to asset quality due to

slowdown in economic activity.
Regulatory restrictions impacting dividend payout.
e, Revenues and Operations
ject to risks and uncertainties, many of which are beyond control. Major factors that can affect the Bank’s resource,
nt assessment parameters, the State Bank of Pakistan may change the monetary policy rate. Any further increase in the
on Bank’s net interest income due to the repricing lag between earning assets and liabilities. However, as the rate
and have a positive impact on Bank’s profitability.
he banks profitability has been disclosed in note 45.2.4 of the financial
eterminant of the policy rate change. Any uptick in inflation statistics will
nce along with other drivers.
UNCERTAI
NTIES
UNCERTAI
INFLA NTIES
TION
CORPORA
TE TAX
Political Stability & Law and order situation: Political stability and controlled law & order situation is a pre-requisite for any econom
reposes investor confidence in the soils of Pakistan, making our corporates a potential investment opportunity. However, any act o
political instability can negatively impact the economy /equity market, thus resulting in decreased profitability.
Corporate Tax rate: Any increase in the corporate tax rate or imposition of an additional tax will adversely impact the
profitability of the Bank.
External Environment
The Bank’s external environment, including political, economic, social, technological, environmental and legal factors have an impact on b
strategic objectives and availability, quality and affordability of capitals.
Details have been disclosed in the risks and opportunities and SWOT section of this report.
Status of Projects Disclosed in the Forward-Looking Statement of Previous Year:

Detail of last year projects
Compliance Risk Management -For Domestic Operations.
MPG – Micro Payment Gateway
CAMS Upgrade (New Loan Origination System for Auto Loan)
AIMS (Audit Interactive Management System)
FCCM Upgrade & TBML Implementation
3D card security protocol implementation
Compliance Risk Management for Overseas Operations
e-kyc application updating with respect to Trade Based Money Laundering
ATM Insourcing Project (ATM Migration & Payment Scheme Certifications)
iSheild - Fraud management system.
Rosetta Integration with Safewatch
Performance of the Bank against Forward-Looking disclosure of 2021 as Presented in the Annual Report 2020
Forward-looking disclosure for 2021 as presented in annual report 2020 Performance of the Bank in 2021 against forward- looking
disclosure
Pakistan’s banking sector will continue to navigate through the tough MCB posted it highest ever profit before tax of Rs. 51.989 billion
economic situation in the year 2021 on account of falling earning for the year ended December 31, 2021. The Profit After Tax
margins due to current policy rate regime and compounding risks to (PAT) registered a growth of 6% to reach Rs.
the asset quality given a subdued outlook for business activity and 30.81 billion while the earnings per share (EPS) were reported at
uncertainty surrounding the COVID-19 outbreak. Considering the Rs. 26.00.
existing disruptions, complexities and uncertainties, the socio- The key drivers for the reported performance included:
economic and regulatory landscape will continue to transform • strategic alignment of growth in average current deposits and
rapidly; hence, further exacerbating the challenges surrounding structured rebalancing of the earning assets mix to derive optimum
the operating environment. margins;
Irrespective of the above captioned challenges, the Bank will strive hard • a remarkable growth of 11% in the non-markup income block;
to deliver results for its stakeholders in 2021. The Bank’s strategic plan, • efficient management of the operating expenditure
centered on the key pillars of customer centricity, geographical base; and
expansion, technology and cyber security and people development • provision reversal against non-performing loans through
(among others), takes into consideration the evolving operating and proactive monitoring and concerted recovery efforts.
economic scenario and paves Bank’s future road map.
Over the past few years, a dearth of quality credit lending avenues in the
market had resulted in surplus liquidity in the sector being diverted
towards Government papers in order to fulfill Government’s
borrowing appetite; which continued to grow amidst persisting
fiscal imbalances.
er situation is a pre-requisite for any economy. This, in turn,
tial investment opportunity. However, any act of terrorism or
ecreased profitability.
will adversely impact the
ronmental and legal factors have an impact on business performance,
Status
Completed
Completed
Completed
Completed
Completed
In Process
In Process
In Process
In Process
In Process
In Process
nnual Report 2020
21 against forward- looking
it before tax of Rs. 51.989 billion

1, 2021. The Profit After Tax
% to reach Rs.
per share (EPS) were reported at
rformance included:
h in average current deposits and
ning assets mix to derive optimum
% in the non-markup income block;

he operating expenditure
non-performing loans through

d recovery efforts.
f quality credit lending avenues in the

idity in the sector being diverted
n order to fulfill Government’s
nued to grow amidst persisting
Forward-looking disclosure for 2021 as presented in annual report 2020
The widespread norms to contain the spread of COVID-19,

including social distancing and limiting the size of gatherings, is
expected to fundamentally alter the consumer behavior of
banking customers. At MCB, our proactive stance to further
augment branch outreach while sustaining parallel focus on
creating safe and secure digital and alternative banking channels shall
hold us in good stead as the customers increasingly look to access non-
physical banking modes.
We would continue to improve our asset quality, increase low
cost deposit base, inculcate operational efficiencies and increase
contribution from the non- markup segment through
materialization of cross sell business opportunities with
corporate clients.
Credit appetite being a mainstream business line of the Bank, instigates
us to avail all righteous credit extension opportunities that fall within
the defined risk appetite of the institution; while proactively
monitoring watch listed portfolio of the bank to minimize any further
infection and ensure that recoveries are made in line with the
agreements.
On the investments side, the Bank is committed to optimally manage
excess liquidity through strategic re-profiling of the investment
book in an evolving yield curve scenario.
We would continue to lead the market position through
focused initiatives targeting new products, new markets,
branchless banking and effective cost management. The Bank is
investing in developing a workforce for the ‘Digital Banking Age’
by attracting and retaining the right skillset and competence;
hence, aligning it with the evolving business dynamics.
Driving customer centricity remains a key area of focus for the next
year; we will direct investments towards empowering employees to
drive a pleasant customer experience across all customer touch
points. Also, in all our capacity and skills enhancement programs
for the employees, we will continue emphasizing the need for the
staff to serve customers as a means of consolidating our position as
the most sought after bank in the industry. To sum up, employees’
development and trainings would remain at the forefront of
our strategic focus. We would acutely remain conscious in
attracting and retaining the best talent pool.
We are committed in maintaining our unique positioning as a
diversified financial institution with a robust heritage and
strong reputation through enriched service offerings and financially
viable tailored products to meet requirements of our esteemed
customers; hence, enabling us to serve both our existing and next-
generation customers in 2021 and beyond while translating the
underlying financial strength of the entity into profits
Sources of Information and Assumptions used for Projections and Forecast
The Bank gathers and compiles internal business data, external economic indicators and industry specific analysis f
and utilizes in-house developed tools and functional expertise to process these items through a calculation; in turn laying the foundatio
and financial forecasts and projections.
The Bank assumes a further modest tightening of the monetary policy stance, by the State Bank of Pakistan, in order to anchor country’
outlook and keep real interest rates at the appropriate level to support growth and maintain external stability. With respect to PK
the currency to devalue further by 5%, however, the volatility observed in 2021 is not expected to be repeated and the exchange rate mov
comparatively stable.
Our Response to Critical Challenges and Uncertainties
MCB remains well poised to respond to all critical challenges and uncertainties emanating from the realization of various systematic and
capitalizing on its stable funding structure, ample liquidity buffers, resilient capital base and a pragmatic business strategy.
For details on Bank’s readiness to respond to critical challenges and uncertainties, please refer to the Risk Management
Framework, Business Continuity Management and Pandemic Recovery Plan section in the Annual Report.
Performance of the Bank in 2021 against forward- looking
disclosure
However, during the year under review, a pickup in domestic
activity and resurgence of key economic sectors translated into a broad-
based growth in advances across the entire industry. MCB’s gross
advances also registered an exceptional growth of 24% to close the year
at Rs. 636 billion and provided the major impetus to growth in Bank’s
outstanding asset base.
The corporate lending book grew by Rs. 106 billion (31%) whereas the
consumer loan portfolio garnered significant interest and increased
by Rs. 9.5 billion (32%) on the back of significant activity in
the construction and auto segment. In 2021, a growth of 35% was
registered with 18,828 credit cards issued while registering 8,706 auto
loans (+57%). The Bank also remained aligned with organizational
direction of adding substantial resources to drive Government’s
Mera Pakistan Mera Ghar (MPMG) Scheme, thereby disbursing 576
loans with volume of Rs.
2.1 Billion.
An analysis of the interest earning assets highlights that while the
average volumes posted a growth, the earning margins subsided due to a
decline of 19% (166bps) in the average policy rate (from an average of
from an average of 8.95% in 2020 to 7.29% in 2021).
On the liabilities side, non-remunerative deposits grew by 15.1% reach
Rs. 563 billion; improving their mix in the total deposits to 40% in
absolute terms as at December 31, 2021. The total deposit base of
the Bank grew by 9% to close out the year at Rs. 1,412 billion. The
cost of deposits decreased by 109bps over the corresponding year.
Net interest income for the year hence fell to Rs. 63.987 billion in
2021 as compared to Rs. 71.33 billion reported in 2020.
The non-markup income block of the Bank grew by a remarkable
11% and aggregated to reach Rs. 20.1 billion. The major contributions
came in from fee & commission, dividend and FX income which grew
by 14%, 86% and 48% respectively primarily on the back of
improved transactional volumes, surge in business activities and
prudent positioning of Bank’s FOREX assets and liabilities amidst a
volatile market.
MCB Home Remittances surged to generate a volume of USD 3.527
billion, registering a growth of 8.5% over last year while MCB Cash
Management crossed the annual volume milestone of Rs. 3.0 trillion
in 2021, thereby retaining its status as one of the leading Banks in cash
management.
MCB remained active throughout Pakistan, UAE and Sri Lanka
through its diverse network of 1,451 branches (including 14 sub-
branches) and more than 1,450 ATMs.
The Bank’s strategic focus on achieving broad based digitalization
and transformation through adoption of cutting-edge technologies
transcribed in the launch of MCB Live during the year under
review and led to the further augmentation Bank’s digital product
base.
MCB Live, a flagship omni-channel digital banking platform,
has been consciously designed to offer a host of enhanced features and
improved services to a wide range of customers. The platform has
attracted great customer response since its launch; with the total number
of registrations exceeding 100,000 during a short span of 2 weeks after
its commercial launch.
Despite the inflationary surge during the year, growth in the
operational network and constant investment in digital, cyber
security and information technology related platforms, the growth in
operating expenses was contained at 8%; indicative of Banks
circumspect approach to manage tradeoff between short term tactical
cost reductions and long term cost initiatives.
On the provision side, Bank made continued progress on its strategic
path and recorded a cumulative recovery of Rs.2.67 billion by settling a
large number of hardcore and protracted defaults.
Return on Assets and Return on Equity reported at 1.65% and 19.11%
respectively, whereas the book value per share was reported at Rs.
135.13.
To enhance the knowledge and skillset of its work force, a number
of trainings were held during the year. Participants from all over
the country were trained through different programs including in-
house, ex-house, mobile, and E-learning training programs. A
segment comprising of Bank’s senior management was engaged in a
Management Development Program as part Bank’s Talent Management
Scheme.
Detailed analysis covering performance and achievements of respective
groups against their targets for 2021 is included in the Groups’
review section of this annual report.
s used for Projections and Forecast

nternal business data, external economic indicators and industry specific analysis from various sources
d functional expertise to process these items through a calculation; in turn laying the foundation for its operational
ns.
tening of the monetary policy stance, by the State Bank of Pakistan, in order to anchor country’s inflationary
at the appropriate level to support growth and maintain external stability. With respect to PKR parity, we expect
owever, the volatility observed in 2021 is not expected to be repeated and the exchange rate movements shall be
Uncertainties
all critical challenges and uncertainties emanating from the realization of various systematic and idiosyncratic risks by
re, ample liquidity buffers, resilient capital base and a pragmatic business strategy.
nd to critical challenges and uncertainties, please refer to the Risk Management

ement and Pandemic Recovery Plan section in the Annual Report.
Graphical Presentation of Financial Statements
Statement of Financial Position (Rupees in Million)
174,407
-
8.26%
Variance from YE 2020
1,970,468 Net Assets
1,796,061
N
Liabilities
e
30,811
t Assets
A As
Liabilities s set -15 -10 -5 0 5 10 15
s 63,987 s
e
Profit & Loss Account t
s
(Rupees in Million)
Variance from YE 2020

51.989 PAT PBT
Provision Non Markup
Expenses Non Markup
Income Net Markup -
Income 165.95%
-260
20,074
4,823 -
10.30%
36.894 -170 -80 10 100

PBT P Ne
A t
Non Markup income N
T Pr
Ma
o ovi
rk (Rupees in Million) (Rupees in Million)
Cash Flows 2021
n
M
sio
up
n
inc
Cash Flows
2020
a o
r m
k e
u
p
E
x
(35.722) p (13.433)
e
(39.027) n 285.808
s
e
s
(270.459)
110.719
Operating I Fin Op In Fin
n an era ve an
v cin tin sti cin
e g g ng g
s
ti
n
g
YE 2020 14.59
%
5 10 15
12.12
%
6.11%
7.75%
8.81%
10.69
%
-80 10 100
(Rupees in Million)
285.808
Maturities of Assets and Liabilities
Rs
Upto 3M to
2021 3M 1Y
Assets
Cash and balances with treasury banks 164.613 164.613 – – –
Balances with other banks 18.830 17.779 1.051 – –
Lendings to financial institutions 42.467 42.467 – – –
Investments - net 1,035,585 280.035 163.342 302.483 92.720
Advances - net 589.712 170.212 83.194 168.334 92.270
Fixed assets 57.328 1.042 3.041 6.744 3.259
Intangible assets 979 187 560 232 –
Other assets - net 60.954 37.758 5.745 11.447 6.004
1,970,468 714.093 256.933 489.240 194.253
Liabilities
Bills payable 24.590 24.590 – – –

Borrowings 269.526 170.235 58.503 8.519 5.608
Deposits and other accounts 1,411,852 170.471 149.958 654.989 327.342
Deferred tax liabilities 729 (545) (1.135) 23 1.647
Other liabilities 89.365 38.163 20.211 13.786 11.763
1,796,062 402.914 227.537 677.317 346.360
Key Interest Bearing Assets and Liabilities

2021 2020
Avg. Vol Effective Interest Avg. Vol Effective
(Mln) interest (Mln) (Mln) interest
rate % rate %
Interest Earning Assets
Lendings to Financial Institutions 23.701 2.39 567 13.735 7.27
Gross Advances (excluding NPLs) 458.979 7.22 33.123 459.219 9.34
Gross Investments (excluding equity investments) 1,077,977 8.30 89.523 854.012 10.77
Interest Bearing Liabilities
Deposits (excl. current deposits) 838.942 5.62 47.107 765.997 7.19
Borrowings 193.703 5.02 9.717 116.155 5.30
14.00%
13.00%
12.00%
10.04%
11.00%
10.00%
9.00% 8.44%
8.00%
7.00% 7.86% 8.75%
6.00% 7.63%
7.40% 7.39% 7.47% 7.44% 7.34% 7.29%
7.31%
7.10%
7.25% 7.25%
7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
Dec - 20 Jan - 21 Feb - 21 Mar - 21 Apr - 21 May - 21 Jun - 21 Jul - 21 Aug - 21 Sep - 21 Oct - 21 Nov - 21 D
KIBOR - 6 Month SBP Policy Rate
Rs. in Million
1Y to 3Y to 5Y &
3Y 5Y above
–
–
–
197.005
75.702
43.242
–
–
315.949
–
26.661
109.092
739
5.442
141.934
Interest
(Mln)
998
42.879
91.983
55.095
6.152
11.21%
9.75%
ug - 21 Sep - 21 Oct - 21 Nov - 21 Dec - 21

Rate
Analyses of Financial Performance
Gross markup income reported a decrease Rs. 12.740 Fee Commission Income
(Rupees in Million) 3,164
billion for the year 2021 when compared with 2020. Income on 2021
advances decreased by Rs. 9.756 billion, primarily on account of 137
decline in yield by 212 bps coupled with comparatively lower

volumes realized in
1.724
average advances The markup income on investments

also reported a decrease, amounting to Rs. 2.460 billion, as the fall in
investment yield by 247 bps diluted
the volumetric growth of Rs. 223.965 billion achieved in
average investments. 1.712
Rs in million
Variance
Mark-Up/ Return / Interest Earned 2021 2020 Amount % age
Loans and advances Investments
Lendings to financial institutions 33,123 42,879 (9,756) -23%
Balances with banks 89,523 91,983 (2,460) -3%
567 998 (431) -43%
122 215 (93) -43%
123.335 136,075 (12,740) -9%

2,946
1,983
Trade & Guarantee Others
Cash Management/Home Remittance Banca & Investment Banking Branch Banking Advances Related
The Bank reported a decrease of Rs. 5.393 billion over last 159
2020
(Rupees in Million)
468
year in markup expense. Mark up expense on deposits decreased by Rs. 7.988 billion,
whereas markup expense on borrowings increased by 3.565 billion.
Yield on deposits decreased by 108 bps due to the reduced average policy rate 1,504
2,210
during the year (average policy rate registered a decline of 19% (166bps) from an
average of 8.95% in 2020 to 7.29% in 2021).
Rs in million
1.625
Variance
2021 2020 Amount % age 3,131
Mark-Up/Return/Interest Expensed 1,840
Deposits 47.107 55.095 (7.988) -14%

Borrowings 9.717 6.152 3.565 58%
Subordinated debt 1.610 2.387 (777) -33%
Cost of foreign currency swaps 2.387 3.009 (622) -21%
Unwinding cost of liability against
right-of-use assets 914 1.107 (193) -17%
59.348 64.741 (5.393) -8%
Trade & Guarantee Others

Cash Management/Home Remittance Banca & Investment Banking Branch Banking Advances Related
The non-markup income block of the Bank was reported at Rs. 20.073 The Bank continues to prudently manage its operating
billion; with major contributions coming in from fee commission, foreign expenditures with a circumspect approach for balancing short term tac
exchange and dividend income. Fee income reported an increase of 14% reductions with long term cost initiatives; hence, restricting the incre
for the year, primarily due to improved transaction volumes and surging 8% for the current year despite sustained inflationary pressure
business activity amidst lifting of lockdowns; increasing its concentration in currency devaluation and rising commodity prices, higher compli
the total non-markup income block to 62%. regulatory charges, expansion in branch outreach and regular pe
Aforementioned resurgence in key economic sectors led to 86% rise in merit adjustments of the Human Capital.
dividend income while prudent positioning of Bank’s foreign exchange assets Performance against Targets
and liabilities, amidst a volatile FOREX market, supported a notable growth of During 2021, the Bank has achieved budget of deposits, advances an
48% in income from dealing in foreign currencies Further, Bank’s current year’s performance against targets disc
Rs in million
Annual Report of 2020 is covered in the “Forward Looking” sectio
Report.
Variance
2021 2020 Amount % age
Non Mark-Up / Interest Income
Fee and commission income 12.440 10.936 1.504 14%
Dividend income 2.251 1.210 1.041 86%
Foreign exchange income 3.734 2.525 1.209 48%
Income from derivatives 14 4 10 250%
Gain on securities 811 3.332 (2.521) -76%
Other income 823 128 695 543%
Total non-markup / interest Income 20.073 18.135 1.938 11%
Objectives to Assess Stewardship of Management

The Bank strives to maximize shareholder value through delivering remarkable returns and achieving sustainable performance that
and shareholder expectations. Key Performance Indicators (KPI’s) to measure Bank’s performance against its short, medium and
objectives along with corresponding strategies have been disclosed in the “Strategic and Resource Allocation” section of the Ann
Future Prospects for Profit

Future prospects about Bank’s profitability have been covered in the Directors Reports and “Forward Looking” section of the A
Explanation of negative change in the performance against prior year

In 2021, profit before tax of the Bank increased by 8% over last year despite a decrease in net interest income (NII) by Rs. 7
an evolving yield curve scenario, subsiding earning spreads on the back of 166bps decrease in the average policy rate, during the y
diluted impact of positive volumetric growth achieved by the Bank in its average earning assets and consequently translated into the
in NII.
773
Cards related
(Rupees in Million)
468
Cards related
age its operating

h for balancing short term tactical cost
ves; hence, restricting the increase to a moderate
ustained inflationary pressures amidst
mmodity prices, higher compliance related
nch outreach and regular performance and
get of deposits, advances and profit.

formance against targets disclosed in the
the “Forward Looking” section of the Annual
ustainable performance that exceeds market
against its short, medium and long term
Allocation” section of the Annual Report.
ward Looking” section of the Annual Report.
nterest income (NII) by Rs. 7.347 billion. In

verage policy rate, during the year under review,
nsequently translated into the captioned decline
Analyses of Non Financial Performance
Non-Financial Highlights
Number of Number of
Branches - 1,437 ATMs - 1,454
(Absolute) (Absolute)
Number of Human
accounts - 8,372,786 Resources - 13,849
(Absolute) (Absolute)
Training CSR
days - 28,092 Investments - 21,278
(Absolute) Rs. in mln
e
Number of
ATMs - 1,454
(Absolute)
Training
Participant - 39,030
(Absolute)
CSR
Investments - 21,278
Rs. in mln
Human capital
otTal number Investment in Total days New Promotions of training of Training
Recruitments
Capital expenditure Rs. In Mln 3.121 3.090
Branches Absolute 1.437 1.429
ATMs Absolute 1.454 1.434
employees (Rs. in Mln) Internet Banking
13.849 35.41 28,092 2,075 2,248 Mobile Banking
Our employees, numbering 13,849 receive well Intellectual capital
remunerated, secure and satisfying employment with Intangibles associated with the Bank – culture, ethics, v
generous retirement benefits. organizational knowledge, systems, procedures and bran
Our strategy is to align what is best for the employees with what is intangibles, while not reflected in the balance sheet,
best for the Bank. Our performance management system has been real assets of the Bank. They permeate the Bank’s operati
designed to motivate employees to pursue goals that will enable the Bank – whether it is high level decision-making or day-to-day fu
to achieve its strategic objectives. Our development and training In 2021 we have focused on following points to enhance of
activities also contribute to the same objective in the longer term. Thus, capital:
we have built a performance- based culture that will support both short term
and long- term value creation.
Our human resources remain the key asset to our success and growth which
is evident from the below mentioned
Cumulative service Strong Governance One of the most

experience of more than valuable brand
74 years
analysis. • Explore customers’ views and expectations with

2021 2020 regard to selected Deposit products on features,
Staff strength Absolute 13.849 13.643 processes and service delivery
New recruitments Absolute 2,075 1,430
• Evaluate customer satisfaction to understand the
Average number of employees Absolute 13,605 13,345
service level of the Bank
Promotions Absolute 2,248 2,356
Investment in training Rs. In Mln 35.41 36.51 • Explore the new trends in consumer banking to
Number of training participants Absolute Training 39,030 30,163
ascertain future banking preferences
days Absolute 28,092
25,277
Manufactured Capital During the year, the total investment on intangible assets
Capital expenditures Branches ATMs Internet is Rs. 356.679 million as compared to Rs. 298.880 million i
Mobile on physical & excluding Banking Social and Relationship Capital
Banking The Pakistan banking industry is more competitive than it h
digital infrastructure sub-branches customers factors such as customer service and convenience are distin
customers that customers look for. With a strong network of branches
PKR 3,121 million 1,437 1,454 204,071 1,456,681 MCB maintains strength in geographic reach that few c
Manufactured capital consists of our physical branch network and Analysis of social and relationship capital as compared to
other tangible and intangible items that support our operations outreach follows:
such as equipment, IT systems and network. 2021 2020
During the year, Bank has expanded its network by 8 branches. In
2021, account base of the Bank expanded to 8.3 million accounts.
The banking model is in gradual transformation from traditional
banking to digital era. Hence, to cater to the growing segment of
millennials among our customers, the Bank has been continuously
investing on the digital banking platforms. We are increasing our digital
touch points on a gradual pace, providing our customers transactional
convenience while ensuring financial security.
No. of accounts Dividends to CSR funds

shareholders (Rs. in Mln) ( Rs. In Mln)
8,372,786 22.516 21.278
No of accounts Absolute 8,372,786 8,217,065

Dividends to Shareholders (Rs. In Mln) 22,516 23,701
CSR funds (Rs. In Mln)
Education Allowance 29 33
Staff Capacity Building & Trainings 35 37
Contribution to National Exchequer 21.178 19.212
Contribution To Staff Welfare Fund 5 5
Donation 8 113
Plantation 23 22
Total 21.278 19.422
2021 2020
of Training
Absolute 204.071 198.939

Absolute 1,456,681 1,396,475
ciated with the Bank – culture, ethics, values,

nowledge, systems, procedures and brand value. These
hile not reflected in the balance sheet, are indeed the
he Bank. They permeate the Bank’s operations at all levels
gh level decision-making or day-to-day functions.
focused on following points to enhance of our intellectual
s’ views and expectations with

ducts on features,
stand the
he total investment on intangible assets
llion as compared to Rs. 298.880 million in FY20.
ship Capital
king industry is more competitive than it has ever been, and
stomer service and convenience are distinguishing features
ok for. With a strong network of branches across the Country,
strength in geographic reach that few can match.
al and relationship capital as compared to prior year is as
Non - Performing Loans
Rs. in Million
Categorywise
OAEM
Substandard Doubtful Loss
Total
2021 2020 Variance 2021

NPLs Provision NPLs Provision NPLs Provision Coverage
49 1 44 2 13.4% -32.4% 2.7%
303 75 214 53 41.2% 41.4% 24.7%

231 116 285 142 -18.8% -18.8% 50.0%
49.908 43.965 50.646 44.946 -1.5% -2.2% 88.1%
50.491 44.156 51.189 45.143 -1.4% -2.2% 87.5%
NPLs Provision NPLs Provision NPLs Provision Coverage
Groupwise
Commercial 3.741 3.517 4.344 4.172 -13.9% -15.7% 94.0%
Consumer 1.891 1.799 2.106 1.928 -10.2% -6.7% 95.1%
Corporate 3.132 3.106 4.695 4.692 -33.3% -33.8% 99.2%
Overseas 50.5 9.393
51.2 3.828 49.4 8.444 49.0
3.470 11.2%
48.8
10.3% 40.8%
Others 32.334 31.907 31.601 30.880 2.3% 3.3% 98.7%
50.491 44.156 51.189 45.143 -1.4% -2.2% 87.5%
(Rupees in Billion)
Non - Performing Loans (2016-2021)
60 21.7
50
40
30
20
10
0
2021
2020 2019 2018 2017 2016

*Infection and Coverage Ratios (2016-2021)
100
90 88.19%
91.46%
87.32%
87.45% 84.85% 85.68%
80
70
60
50
40
30
20
10
0
7.94% 9.97% 9.15% 8.95% 9.47%

5.90%
2021 2020 2019 2018 2017 2016

Coverage Ratio Infection Ratio
* Based on specific provision only

Coverage
94.0%
95.1%
99.2%
40.8%
98.7%
87.5%
2016
Non - Performing Assets
1. Movements in NPA Rs. in Million
Non-performing Non-performing Non-performing Advances I
Assets
(Debt Securities only)
2021 2020 2021 2020 2021 2020
Opening balance Exchange adjustments 51,189 49,424 491 607 51,680

Additions 822 247 – – 822
Recovery / declassification
Amounts written off
2,254 4,403 – (13) – (116) 2,254
(3,378) (2,556) (3,391)
(1,124) 1,847 (13) (116) (1,137)
(396) (329) – – (396)
Closing balance 50.491 51.189 478 491 50.969
2. Sector-wise breakup of NPA Non-performing Non-performing Non-performing Advances
Assets
(Debt Securities only)
2021 2020 2021 2020 2021 20
Agriculture, forestry and fishing 419 477 – – 419

Construction 351 290 – – 351
Energy Production, Steam and air conditioning supply 469 479 – – 469
Financials 301 463 – – 301
Individuals 3.825 4.316 – – 3.825
Manufacture of basic metals and metal products 3.980 3.028 – – 3.980
Manufacture of cement 393 393 285 285 678
Manufacture of chemicals and chemical and
pharmaceutical products 232 276 – – 232
Manufacture of food & beverages products 3.067 3.274 – – 3.067
Manufacture of sugar 4.420 4.658 146 146 4.565
Manufacture of textiles 12.734 13.475 41 54 12.774
Transportation and storage 373 434 – – 373
Services 430 464 – – 430
Wholesale and retail traders 13.042 12.522 – – 13.042
Others 6.456 6.639 6 6 6.462
50.491 51.189 478 491 50.969
3. Movement of provisions made against NPA Non-performing Non-performing Non-performing Ad
Investments Assets
(Specific Provision only) (Debt Securities only)
2021 2020 2021 2020 2021 2020
Opening balance Exchange adjustments 45,143 41,934 490 534 45,634

Charge for the year Reversals 320 51 – – 320
Amounts written off
2,341 5,703 – (13) 73 2,341
(3,251) (2,216) (116) (3,264)
(910) 3,487 (13) (43) (923)
(396) (329) – – (396)
Closing balance 44.156 45.143 478 491 44.635
4. Details of accounts restructured as per regulatory guidelines
The outstanding amount against restructured accounts in NPA amounts to Rs. 9,806.093 Million as at December 31, 2021: (December 31
Million)
Rs. in Million
Non-performing Advances Investments
Assets
Securities only)
21 2020 2021 2020
50,031
247
4,403
(2,672)
1,731
(329)
51.680
Non-performing Advances Investments
Assets
ebt Securities only)
2021 2020 2021 2020
477
290
479
463
4.316
3.028
678
276
3.274
4.804
13.529
434
464
12.522
6.645
51.680
erforming Non-performing Advances
ets
Debt Securities only)
2020 2021 2020
42,468
51
5,776
(2,332)
3,444
(329)
45.634
at December 31, 2021: (December 31, 2020: 6,634.906

Deposits & Advances - Sector wise
December 31, 2021
Rupees in Million
Sector Deposits Advances
Agriculture, forestry and fishing 25.984 6.296

Construction 37.970 14.213
Energy Production, Steam and air conditioning supply 79.172 33.914
Financials 28.809 32.744
Individuals 912.825 51.084
Manufacture of basic metals and metal products 2.407 19.214
Manufacture of cement 5.111 16.801
Manufacture of chemicals and chemical and pharmaceutical products 11.731 60.149
Manufacture of food & beverages products 22.273 49.347
Manufacture of sugar 5.139 39.229
Manufacture of textiles 12.633 114.258
Transportation and storage 3.124 61.873
Telecommunications 5.802 23.856
Services 34.636 14.907
Wholesale and retail traders 50.786 45.170
Others 173.450 52.519
1,411,852 635.574
Deposits
Agriculture, forestry and fishing Construction I M T
Electricity, gas, steam and air codnditioning supply n a e
Financial d n l
i u e
v f c
i a o
d c m
u
a
Advances t
u
m
u
Agriculture, forestry and fishing Construction lI rM n
T
Electricity, gas, steam and air codnditioning supply s
n e
a i
e
Financial M
d n lc
ia o
u a
e
vn f ct
iu a i
o
f
d cf o
m
a
u to n
m
c
a o
u s
u
lt rd n
u
s e S
i
r
M & ce
e
a o r
a
n fb tv
o
u e i
f fv c
o
a e
o e
n
cb r
o s
ta a
d W
s
u g h
S
ri e
& o
e
ce s lr
b ve
m
o p
e is
fe vr ca
t o
e l
e
a
b rd se
l
a u
a W
s c
g a
h
i t
e n
o
ca s ld
n e
d
m M
p sr
e ra e
a
tm n
o lt
e
a u
d a
e
tl fu i
sa ca l
a
l tc n
a st t
d
p
n u r
rd rM a
r
o e
a d
e
d
m n te
u
e o
u r
a
tc f is
ta a O
l
ls cs t
tu th
M
p g
u re
ra ra r
a
n
o re sd
u
d M e
f
u a
o r
ca fn s
tc u O
ts fs t
u a
u h
r
M c
g e
e
a t
a r
n ru s
o
u rM
f e
a
a n
cC o
u
te f
m
u a
re cT
n
e te
t x
u
M
o rt
a
f ie
n l
u
C e
o
f
e fT
a
m r
ce a
T
t
n n
e
tu xs
Rupees in Million
Advances
6.296
14.213
33.914
32.744
51.084
19.214
16.801
60.149
49.347
39.229
114.258
61.873
23.856
14.907
45.170
52.519
635.574
Deposits & Advances - Group wise
Rs. in Billion
Commercial Consumer Corporate

Overseas Others
Total
Groupwise Deposits Groupwise Gross Advances

Variance Variance
2021 2020 2021 2020
Amount % Amount %
1,261.9 1,147.5 114.4 9.97% 91.3 84.5 6.8 8.09%
24.2 21.3 2.9 13.75% 38.5 28.9 9.6 33.22%
59.2 66.3 (7.2) -10.79% 445.0 338.8 106.2 31.35%
66.5 54.4 12.2 22.42% 28.9 30.1 -1.2 -4.08%
- - - - 31.9 31.3 0.6 1.92%
20 20
1,411.9 1,289.5 20
122.3 9.49% 635.6 513.6 122.0 23.76%20
94.13%
CASA Mix Weighted Average Cost of Deposits
92.93% 92.96% 92.86% 5.96%
20 20
19 6 19 4.53%
95.00
91.02%
5
90.42%
20 4 3.49% 20
18 90.00 18 3.18%
3
20 20
17 2 17
1
85.00
20 20
2021 16 16
650
600 Weekly Trend of MCB Deposits and Advances - 2021
550 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52
500 Weekly Deposits Weekly Advances
450
2
400 0
2
1
6.00%
5.70%MCB's Industry Share in Deposits and Advances - 2021
5.40% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52
5.10% Deposit Share of MCB 2021 Advances Share of MCB 2021
osits
2.53% 2.48%
1
,
5 46 47 48 49 50 51 52 4
5
0
1
,
4
0
0
1
,
3
5
0
1
,
3
0
0
1
,
2
5
0
1
,
2
0
0
1
,
1
5
0
7.60%
7.30%
44 45 46 47 48 49 50 51 52
7.00%
6.70%
6.40%
6.10%
Investments
Rupees in Million
2021 2020 Var. % Var.
Treasury Bills 325.536 598.470 (272.934) -46%
Pakistan Investment Bonds 660.198 349.739 310.459 89%

TFCs, Debentures and Certificates 5.468 7.325 (1.857) -25%
Other government securities / Sukuks / Euro Bonds 18.774 18.703 71 0%
Shares in Listed, Unlisted Co.s & Mutual funds 31.019 26.589 4.430 17%
Subsidiaries & Associated Undertakings 13.019 13.019 – 0%
Investments at cost 1,054,014 1,013,846 40.168 4%
Provision for diminution in value of investments (10.660) (10.653) (7) 0%
Surplus / (deficit) on revaluation of investments (7.768) 12.676 (20.445) -161%
Investments at revalued amount - net of provision 1,035,585 1,015,869 19.716 2%
Non-Statutory Investment
660
Portfolio* 688.242 629.122
598
578
*Maintained in excess of Statutory Liquidity Requirement

(Rupees in Billion)
Category of Investments350(2016-2021) 402 384
326
700 293 2 297
600 223 0 213

500 1
400 128 7
300 E
31 25 25 q
200 24 26 27 20 12 10 25
12 22
u
100 20
i
0 18 t
Deb y
2021 2020 2019 t 2016
Sec S
PIB
uriti e
T-Bills s
es c
100.0% 60.0%
80.0%
Investments to Deposits Ratio (2016-2021) 58.0%
Investments to Total Assets (2016-2021)u
r
56.0%
57.8
i
% t
78.8 i
73.3 % 71.4 71.1 e
% 67.8
% %
65.4 s
%
% 20
52.6
60.0% 54. % 19
40.0% 0
20.0% % 50.0
49.4 %
0.0% 52. 20 % 48.9
0 18 %
%
50.
0 20
% 17
48.
0
%
46.
20
2021 2020 2019 2018 2017 2016
0 2021 2020 16
%
44.
0
%
Rupees in Million
% Var.
-46%
89%
-25%
0%
17%
0%
4%
0%
-161%
2%
sets (2016-2021)
51.8
%
Capital Structure
2021
Capital Structure
Tier 1 Capital
Shareholders equity /assigned capital 11.851
Share premium 23.751
Reserves 56.242
Unappropriated profits 63.683
155.527
Deductions:
Book value of intangible and advances given for intangible 979

Defined benefit pension fund assets - net 1.963
Other deductions 2.231
5.173
Total Tier 1 capital 150.354
Tier 2 Capital
Qualifying Tier 2 capital instruments –
General provisions subject to 1.25% of total risk weighted assets 1.706
Revaluation reserves 13.842
Foreign exchange translation reserves 3.701
19.250
Deductions:
Other deductions –
Total Tier 2 Capital 19.250
Total Regulatory Capital Base 169.604
Capital Adequacy
Risk Weighted Assets Credit Risk
711.304
Market Risk 132.895

Operational Risk 153.080
Total RWA 997.279
Capital Adequacy Ratio
Total eligible regulatory capital held 169.604
Total Risk Weighted Assets 997.279
Capital Adequacy Ratio 17.01%
Capital Adequacy Ratio (2016-2021)

2021 2020 2019 2018 2017 2016
Credit RWA - Rs. in Million Market RWA - Rs. in Million Operational RWA - Rs. in Million CAR - %
711,30
4
635,59 638,49 637,48 633,99
9 3 1 8
20.98
%
18.86
%
18.13
%
17.01
% 16.44
%
114,78
132,895 112,88 6 116,63
122,604 108,276
153,080 139,735 2 1
120,887 54,81
4
Rupees in Million
2020
11.851
23.751
53.160
69.835
158.597
938
2.191
2.566
5.695
152.901
–
5.465
27.165
2.876
35.507
–
35.507
188.409
635.599
122.604
139.735
897.938
188.409
897.938
20.98%
17 2016
CAR - %
19.33
%
452,94
9
116,63 107,443
1
106,803
Quarterly Performance - 2021 & 2020
Rupees in Million
2021 2020
4th 3rd 2nd 1st 4th 3rd
Quarter Quarter Quarter Quarter Quarter Quarter
Profit & Loss Account
Mark-up earned 33.431 31.702 29.854 28.347 29.040 31.824 36.112 39.100
Mark-up expensed (17.189) (15.506) (13.545) (13.107) (13.052) (12.490) (16.407) (22.792)
Net mark-up income 16.242 16.195 16.309 15.240 15.988 19.333 19.705 16.308
Non-mark-up income 5.691 4.884 4.750 4.749 4.577 6.476 3.195 3.888
Total Income 21.933 21.080 21.058 19.989 20.565 25.810 22.900 20.195
Non-mark-up expenses (9.538) (9.321) (9.144) (8.891) (8.465) (8.565) (8.290) (8.588)
Profit before provisions 12.395 11.759 11.914 11.099 12.100 17.245 14.610 11.607
(Provisions) / Reversals 1.324 1.499 1.823 177 (2.204) (1.145) (3.221) (742)
Profit before taxation 13.719 13.257 13.737 11.276 9.895 16.099 11.389 10.865
Taxation (5.464) (5.444) (5.784) (4.486) (3.793) (6.374) (4.699) (4.346)
Profit after taxation 8.255 7.813 7.953 6.790 6.102 9.725 6.690 6.519
Statement of Financial Position
Assets
Cash and balances with treasury banks 164.613 119.779 142.191 111.838 122.181 127.513 144.168 94.130
Balances with other banks 18.830 15.322 14.222 20.895 24.030 29.693 14.701 15.170
Lendings to financial institutions 42.467 26.028 32.494 17.238 17.139 2.140 2.057 9.577
Investments 1,035,585 1,176,246 1,096,213 1,090,917 1,015,869 964.412 928.708 836.660
Advances 589.711 481.778 462.538 429.357 462.942 445.039 460.611 480.925
Fixed assets 57.328 57.573 57.588 57.658 58.028 57.739 57.586 58.020
Intangible assets 979 998 956 1.000 938 836 881 941
Other assets 60.955 53.372 54.722 48.059 56.334 47.498 58.893 59.795
1,970,468 1,931,097 1,860,923 1,776,962 1,757,462 1,674,869 1,667,604 1,555,216
Liabilities
Bills payable 24.590 12.287 12.929 11.285 23.981 9.951 10.504 7.972
Borrowings 269.526 191.237 139.594 190.058 164.002 112.373 113.230 88.652
Deposits and other accounts 1,411,852 1,456,581 1,441,208 1,313,702 1,289,502 1,274,870 1,274,682 1,184,139
Sub-ordinated loan - - - - - - - -
Deferred tax liabilities 729 4.639 6.989 5.003 6.975 6.497 11.804 10.425
Other liabilities 89.365 88.711 81.585 82.190 82.901 85.803 72.498 85.382
1,796,061 1,753,455 1,682,305 1,602,238 1,567,361 1,489,494 1,482,719 1,376,570
Net assets 174.407 177.642 178.618 174.724 190.102 185.376 184.886 178.646
Represented by:
Share capital 11.851 11.851 11.851 11.851 11.851 11.851 11.851 11.851
Reserves 84.602 83.443 81.745 80.577 80.696 80.558 79.712 78.843
Unappropriated profit 63.683 61.239 60.084 58.268 69.835 62.924 54.122 55.742
19.7
Surplus on revaluation of assets - net of tax 14.272 21.110 24.939 24.028 27.720 30.043 19.3 39.201 32.211
16.1
174.407 177.642 178.618 174.724 190.102
16.3 16.3
185.376
16.2
184.886 178.646
16.2 16.0
13.7 13.7 15.2
13.3
Quarterly PBT (Rupees in Billion) Quarterly NIM (Rupees in Billion)
18 11.3
11.4 20
10.9
9.9
15
12
10
6
5
0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2021 2020 2021 2020
2nd 1st
Quarter Quarter
39.100
(22.792)
16.308
3.888
20.195
(8.588)
11.607
(742)
10.865
(4.346)
6.519
94.130
15.170
9.577
836.660
480.925
58.020
941
59.795
1,555,216
7.972
88.652
1,184,139
-
10.425
85.382
1,376,570
178.646
11.851
78.843
55.742
32.211
178.646
Q4
2020
Quarterly Performance Analysis - 2021 & 2020
Quarter Net Interest Income Non Markup Income Non Markup Expenses Profit
Quarter 1 During the 1st quarter of 2021, Net Interest Non Markup Income for the 1st quarter Non Markup expenses grew by 4% in the Declining net interest income due to a
Income (NII) of the Bank fell by 7% and of 2021 was reported at Rs. 4.749 billion 1st quarter of 2021 over the corresponding moderation in earning margins on the back
was reported at Rs. against Rs. 3.888 billion reported in the period. Despite surge in inflationary of expansionary monetary policy stance
15.240 billion. The markup income was corresponding period; representing an increase pressures, the Bank was able to contain adopted by the State Bank of Pakistan was
concentrated by markup from investments of 22%. The lower fee income base in 2020 growth in non HR related operating expenses set off by a significant growth of 22%
which amounted to Rs. 20.621 billion and owing to realization of various systematic to 4% through effective expense reported in the Non Markup Income block.
constituted 73% of the gross amount while the and idiosyncratic factors amidst the management whereas the regular Disposal of equity scrips resulted in
markup income from advances was reported at COVID-19 outbreak, including branch performance and merit adjustments of the impairment reversal of Rs. 570 million during
Rs. 7.60 billion. The decline in gross closures and a slowing economic activity, Human Capital meant that HR related the 1st quarter. Hence, the provision expense
markup income was broad based as the together with higher realized gain on sale of operating expenses grew by 7%. reported a net reversal of Rs. 177
subsiding interest rate margins, in a downward securities in 2021 were the major reasons for million against a charge of Rs. 742 million
sloping yeild curve, diluted the impact of the increase; contributing 57% and 32% to the reported in the corresponding period.
volumetric growth achieved in earning assets. gross increase respectively.
On the markup expense side, Rs. Profit before tax resultantly grew by
10.473 billion was reported on account 4% in the 1st quarter of 2021..
of markup on deposits; representing a
decline of 47% over the corresponding
period owing primarily to lower minimum
saving rate applicable during the quarter
under review.
Quarter 2 NII during the 2nd quarter was reported Non Mark up Income for the 2nd quarter of Non Markup expenses witnessed a surge The declining NII was offset by a broad
at Rs. 16.309 billion; lower by 17% as 2021 was reported at Rs. 4.750 billion; posting in the 2nd quarter of 2021 owing based growth of 28% in Non Markup
compared to the corresponding period on the a rise of 28% over the corresponding period. primarily to the higher compliance related Income block and the higher general
back of subsiding net interest margins (the The increase was broad based with fee & regulatory charges booked during the provision charge taken in comparative
average policy rate in Q2' 2021 was reported at commission (16%), dividend income (81%), quarter. The remaining increase in the period to combat economic stress posed by
7% compared to 8.79% in Q2' 2020 and depicted gain on sale of securities (198%) and other operating expenses was in line with the COVID-19 outbreak and improve banks
a decline of 179 bps on an average basis) income (3449%) all registering significant trend reflected during the 1st quarter. insulation and loss absorption capacity in case
growth. of any unforeseen deterioration in asset
quality.
Resultantly, profit before tax for the 2nd

quarter was reported at Rs. 13.737 billion
as compared to Rs.
11.389 billion for the corresponding period;
posting a growth of 21%.
Quarter 3 NII during the 3rd quarter was reported Non Mark up Income declined during the 3rd On the back of rapidly accelerating Profit before tax reported a decline of
at Rs.16.195 billion; lower by 16% as quarter of 2021, by 25%, owing primarily to inflationary pressures amidst 18% in the 3rd quarter of 2021 to post
compared to the corresponding period of the high capital gains of Rs. 2.861 billion currency devaluation and rising Rs. 13.257 billion as compared to Rs.
2020. Markup expense on deposits and realized in the comparative period through commodity prices, Non Markup expenses 16.099 billion in the comparative period.
borrowings rose by 15.1% and 235.3% proactive duration management and reprofiling reported a more broad based increase While, profit after tax was reported at Rs.
respectively and contributed majority share to of the investment portfolio. during the 3rd quarter of 2021; the total growth 7.813 billion with a decline of 20%.
the total increase. percentage hence rising to 9%.
Prudent positioning of foreign The significant factors contributing

currency assets amidst a volatile FOREX to the lower profit were moderating NII, a
market and surging domestic economic activity broad based increase in Non Markup
led to a respective increase of 90% and 138% in expenses and declining Non Markup Income
foreign exchange and dividend income due to realization of capital gains on the
while the fee & commission income investment portfolio in the comparative period.
continued on the path of its upwards trajectory
to post a growth of 9%.
Quarter 4 The last quarter of the year witnessed a trend Non Mark up Income posted a growth of Non markup expenses closed the period in During the last quarter quarter of the
reversal as the State Bank of Pakistan adopted a 24% to report at Rs. 5.691 billion for the 4th line with the 3rd quarter; posting a growth of year the Bank registered a significant
contractionary monetary policy stance to quarter of 2021. Prime contributions were 13% to report at Rs. 9.538 billion. growth of 39% in its profit before tax to
combat persisting inflationary lent by foreign exchange income which grew post Rs. 13.719 billion compared to Rs.
pressures due to hike in global by 132% amidst continued volatility in the 9.895 billion posted in the comparative
commodity prices and higher than expected FOREX market, dividend income which grew period.
demand activity on the back domestic by 68% amidst recovery in key economic Total income increased by 7% on the back
economic recovery witnessed across key sectors and receding of exogenous risks and of a registered increase of 2% and 24% in NII
segments. fee & commission income which posted a and Non Markup Income respectively. The
On the back of evolving yield curve note worthy growth of 13%. increase was slightly offset by a 13% rise in
scenario, unfavorable repricing lag Non Markup expenses while the net provision
between earning assets and liabilities charge posted a decline of 160%.
meant that the rise in markup expense on
interest bearing liabilities was disparate to the
increase reported in markup income on advances
and hence the NII grew only by 2% during the
quarter and was reported at Rs. 16.242 billion.
9.5
9.1 9.3
Non Markup
8.9
8.6 Expense (Rupees in Billion)
8.3
8.6 8.5 Non Markup Income (Rupees in Billion)
6.5
10 8
8
4.9
6 4.7 4.7
6 3.9
4
3.2
4
2
2
Q1 Q2 Q3 Q4 0 Q2
Q1
2021 2020 2021
net interest income due to a
n in earning margins on the back
ionary monetary policy stance
y the State Bank of Pakistan was
a significant growth of 22%
n the Non Markup Income block.
of equity scrips resulted in
nt reversal of Rs. 570 million during
rter. Hence, the provision expense
a net reversal of Rs. 177
ainst a charge of Rs. 742 million
n the corresponding period.
ore tax resultantly grew by

1st quarter of 2021..
ning NII was offset by a broad

owth of 28% in Non Markup
ock and the higher general
charge taken in comparative
combat economic stress posed by
9 outbreak and improve banks
and loss absorption capacity in case
foreseen deterioration in asset
ly, profit before tax for the 2nd

as reported at Rs. 13.737 billion
ed to Rs.
lion for the corresponding period;
growth of 21%.
ore tax reported a decline of
he 3rd quarter of 2021 to post
57 billion as compared to Rs.
illion in the comparative period.
ofit after tax was reported at Rs.
ion with a decline of 20%.
ificant factors contributing

wer profit were moderating NII, a
sed increase in Non Markup
nd declining Non Markup Income
ealization of capital gains on the
t portfolio in the comparative period.
he last quarter quarter of the

Bank registered a significant
39% in its profit before tax to
13.719 billion compared to Rs.
on posted in the comparative
ome increased by 7% on the back

tered increase of 2% and 24% in NII
Markup Income respectively. The
as slightly offset by a 13% rise in
up expenses while the net provision
ted a decline of 160%.
upees in Billion)
5.7
4.6
Q3 Q4
2020
Six Years’ Financial Performance / Financial Ratios
2016 - 2021
2021 2020 2019 2018 2017 2016
Profit and loss account
Mark-up/ return earned Rs. Mln 123.334 136.076 138.292 83.319 74.091
Mark-up/ return expensed "" 59.347 64.741 78.676 37.305 31.429
Fund based income "" 63.987 71.334 59.616 46.014 42.662
Fee, Commission, brokerage & FX income "" 17.011 13.594 14.469 14.625 11.435
Dividend and capital gains "" 3.062 4.542 2.210 2.573 6.682
Total income "" 84.061 89.470 76.295 63.212 60.780
Operating expenses "" 36.894 33.908 33.709 32.902 28.721
Operating profit before tax and provision "" 47.167 55.562 42.586 30.310 32.059
Provisions / (Reversals) "" (4.823) 7.313 2.484 (1.753) 1.045
Profit before tax "" 51.989 48.249 40.102 32.064 31.014
Profit after tax "" 30.811 29.037 23.977 21.360 22.459
Cash Dividends "" 22.516 23.701 20.146 18.961 18.673
Statement of financial position
Authorised capital "" 15.000 15.000 15.000 15.000 15.000 15.000
Paid up capital "" 11.851 11.851 11.851 11.851 11.851 11.130
Reserves "" 84.602 80.696 77.591 74.148 70.866 53.347
Unappropriated Profit "" 63.683 69.835 55.777 53.532 53.776 53.469
Shareholder's equity "" 160.136 162.382 145.219 139.531 136.493 117.946
Surplus on revaluation of assets - net of tax "" 14.272 27.720 23.695 9.747 17.073 23.680
Net Assets "" 174.407 190.102 168.915 149.278 153.566 141.627
Total Assets "" 1,970,468 1,757,462 1,515,15 1,498,130 1,343,238 1,072,365
Earning Assets "" 1,732,055 1,544,536 2
1,294,09 1,343,378 1,175,352 911.163
Gross Advances "" 635.574 513.550 540.0376 546.792 515.058 367.678
Advances - net of provisions "" 589.711 462.942 496.679 503.581 469.356 348.117
Non-Performing Loans (NPLs) "" 50.491 51.189 49.424 48.956 48.753 21.688
Investments "" 1,035,585 1,015,869 748.765 749.369 656.964 555.929
Total Liabilities "" 1,796,061 1,567,361 1,346,23 1,348,852 1,189,672 930.739
Deposits & other accounts "" 1,411,852 1,289,502 1,144,77 1,049,038 968.483 781.430
Current & Saving Deposits (CASA) "" 1,312,059 1,198,785 63
1,035,0 954.813 899.364 735.550
Borrowings "" 269.526 164.002 63
89.506 216.019 133.070 74.515
Interest bearing Liabilities "" 1,118,182 964.119 809.717 867.048 728.361 557.913
Contingencies and Commitments "" 619.187 714.038 851.147 584.434 448.135 307.566
Profitability ratios:
Profit before tax ratio % 42.15% 35.46% 29.00% 38.48% 41.86%
Gross Yield on Average Earning Assets "" 7.53% 9.59% 10.49% 6.41% 7.10%
Gross Yield on Avg. Earning Assets (incl. dividend "" 7.72% 9.91% 10.65% 6.61% 7.74%
& capital
Gross gains)
Spread "" 51.88% 52.42% 43.11% 55.23% 57.58%
Cost to income ratio "" 42.09% 36.49% 42.82% 50.77% 46.00%
Return on average equity (ROE) "" 19.11% 18.88% 16.84% 15.48% 17.65%
Return on average assets (ROA) "" 1.65% 1.77% 1.59% 1.50% 1.86%
Return on Capital Employed (ROCE) "" 19.11% 18.88% 16.84% 15.48% 17.65%
Shareholder Funds "" 8.85% 10.82% 11.15% 9.96% 11.43%
Return on Shareholder Funds "" 16.91% 16.18% 15.07% 14.11% 15.22%
Non interest income to total income "" 23.88% 20.27% 21.86% 27.21% 29.81%
Admin Exp to Profit before Tax "" 68.05% 67.66% 81.47% 100.08% 90.15%
Investment ratios\Market Ratios:
Earnings per share (after tax) Rs. 26.00 24.50 20.23 18.02 19.56
Earnings per share (before tax) "" 43.87 40.71 33.84 27.06 27.02
Breakup value per share
- without surplus on revaluation of fixed assets & "" 135.13 137.02 122.54 117.74 115.18
investments
- without surplus on revaluation of fixed assets "" 131.49 144.45 126.47 115.68 119.17
- with surplus on revaluation of fixed assets & "" 147.17 160.42 142.54 125.97 129.59
-investments
with surplus on revaluation of fixed assets & investments &
investment in related party at fair / market value "" 149.82 162.80 144.89 128.41 132.90
Cash Dividend % 190% 200% 170% 160% 160%
Dividend Yield ratio (based on cash dividend) "" 12.39% 10.79% 8.30% 8.27% 7.54%
Dividend Payout ratio "" 73.08% 81.62% 84.02% 88.77% 81.86%
Price to book value ratio Times 1.13 1.35 1.67 1.64 1.84
Price to earning ratio "" 5.90 7.56 10.13 10.74 10.85
Dividend cover ratio "" 1.37 1.23 1.19 1.13 1.18
67.400
23.586
43.814
9.040
7.135
59.989
22.989
36.999
925
36.075
21.891
17.808
15.000
11.130
53.347
53.469
117.946
23.680
141.627
1,072,365
911.163
367.678
348.117
21.688
555.929
930.739
781.430
735.550
74.515
557.913
307.566
53.52%
7.56%
8.36%
65.01%
36.80%
18.94%
2.16%
18.94%
13.21%
15.67%
26.96%
61.19%
19.67
32.41
105.97
116.10
127.24
132.90
160%
6.73%
81.35%
2.24
12.09
1.23
Six Years’ Financial Performance / Financial Ratios
2016 - 2021
2021 2020 2019 2018 2017 2016
Share Information:
Market value per share - Dec 31 Rs. 153.35 185.28 204.94 193.57 212.32 237.82
High - during the year "" 202.40 224.53 216.20 236.56 262.10 244.82
Low - during the year "" 146.00 132.89 154.04 177.16 190.43 190.20
Market Capitalisation Rs. Mln 181.729 219.568 242.866 229.392 251.612 264.701
Asset Quality and Liquidity ratios:
Gross Advances to deposits ratio % 45.02% 39.83% 47.17% 52.12% 53.18%
Net Advances to deposits ratio "" 41.77% 35.90% 43.39% 48.00% 48.46%
Investments to deposits ratio "" 73.35% 78.78% 65.41% 71.43% 67.83%
Weighted Average Cost of Deposits "" 3.49% 4.53% 5.70% 3.18% 2.53%
CASA to total deposits "" 92.93% 92.96% 90.42% 91.02% 92.86%
NPLs to Gross advances ratio "" 7.94% 9.97% 9.15% 8.95% 9.47%
NPLs to Shareholders Equity "" 31.53% 31.52% 34.03% 35.09% 35.72%
Coverage Ratio (specific provision/ NPLs) "" 87.45% 88.19% 84.85% 85.68% 91.46%
Coverage Ratio (total provision/ NPLs) "" 90.83% 98.87% 87.73% 88.26% 93.74%
Earning assets to total assets ratio "" 87.90% 87.88% 85.41% 89.67% 87.50%
Investments to total assets ratio "" 52.56% 57.80% 49.42% 50.02% 48.91%
Cash & Cash Equvilants to Total Assets "" 9.23% 8.30% 9.50% 7.55% 8.16%
Cash to Current Liabilities "" 4.49% 6.34% 5.39% 3.44% 5.07%
Efficiency Ratio "" 70.96% 70.28% 84.06% 102.61% 92.61%
Cash Reserve Ratio "" 5.09% 5.02% 5.02% 5.02% 5.03%
Liquid Assets to Total Assets Ratio "" 54.10% 50.99% 43.74% 43.18% 38.18%
Gross Non Performing Assets to Gross Advances & "" 3.05% 3.38% 3.88% 3.82% 4.20%
Investments
Earning assets to interest bearing Liabilities Times 1.55 1.60 1.60 1.55 1.61
Deposits to shareholder equity "" 8.82 7.94 7.88 7.52 7.10
Assets to Equity "" 12.30 10.82 10.43 10.74 9.84
Current / Quick Ratio "" 1.53 2.38 2.29 1.91 2.01
Risk Adequacy:
Tier I Capital Rs. Mln 150.354 152.901 136.257 128.999 129.130 111.999
Total Eligible Capital "" 169.604 188.409 163.611 145.987 147.227 128.968
Risk Weighted Assets (RWA) "" 997.279 897.938 867.478 805.177 895.415 667.195
Tier I to RWA % 15.08% 17.03% 15.71% 16.02% 14.42% 16.79%
RWA to total assets "" 50.61% 51.09% 57.25% 53.75% 66.66% 62.22%
Capital Adequacy Ratio "" 17.01% 20.98% 18.86% 18.13% 16.44% 19.33%
Net Return on Average RWA "" 3.25% 3.29% 2.87% 2.51% 2.87% 3.40%
Duo Pont Analysis:
Net Operating Margin % 36.65% 32.45% 31.43% 33.79% 36.95%
Asset Utilization % 4.51% 5.47% 5.06% 4.45% 5.03%
Leverage Ratio / Equity Multiplier Times 11.56 10.64 10.58 10.29 9.49
Industry Share:
Deposits* % 6.41% 6.91% 7.45% 7.57% 7.59%
Advances* "" 5.98% 5.69% 6.21% 6.57% 7.46%
Market Capitalisation "" 13.03% 16.08% 16.87% 17.17% 17.85%
*based on economic data released by State Bank of Pakistan
Consolidated:
Total Assets Rs. Mln 2,122,121 1,891,276 1,612,215 1,585,210 1,389,492 1,097,281
Shareholders' Equity "" 161.592 163.409 145.854 140.196 138.100 120.152
Net Assets "" 177.569 192.991 171.347 151.323 156.543 145.960
Profit before tax "" 53.275 49.318 40.154 30.806 30.614 36.721
Profit after tax "" 31.328 29.562 23.947 20.415 22.048 22.174
Return on Average Assets % 1.56% 1.69% 1.50% 1.37% 1.77% 2.14%
Return on Average Equity "" 19.19% 19.02% 16.66% 14.60% 16.98% 19.18%
Earnings per share Rs. 26.31 24.82 20.14 17.17 19.13 19.82
Breakup value per share "" 149.84 162.85 144.59 127.69 132.10 131.14
Capital Adequacy Ratio % 15.98% 19.69% 17.84% 17.02% 16.34% 19.68%
Per Branch:
Gross Advances Rs. Mln 442.29 359.38 383.01 394.23 356.69
Deposits "" 982.50 902.38 811.89 756.34 670.69
CASA "" 913.05 838.90 734.09 688.40 622.83
PBT "" 36.18 33.76 28.44 23.12 21.48
s
237.82
244.82
190.20
264.701
47.07%
44.55%
71.14%
2.48%
94.13%
5.90%
18.39%
87.32%
90.82%
84.98%
51.84%
7.31%
7.78%
63.73%
5.02%
40.07%
2.36%
1.63
6.63
9.09
3.05
111.999
128.968
667.195
16.79%
62.22%
19.33%
3.40%
36.49%
5.78%
8.99
6.79%
6.24%
14.86%
1,097,281
120.152
145.960
36.721
22.174
2.14%
19.18%
19.82
131.14
19.68%
297.10
631.20
594.14
29.14
Six Years’ Non-Financial Performance
2016 - 2021
2021 2020 2019 2018 2017 2016
No. of accounts Absolute 8,372,786 8,217,065 8,223,03 7,854,928 7,607,277 6,549,452
No. of branches " 1.437 1.429 1.4108 1.387 1.444 1.238
No. of permanent employees " 13.849 13.643 13.596 12.860 13.155 11.088
Staff turnover ratio % 13.69% 10.07% 12.50% 14.04% 14.40% 13.84%
Customer Satisfaction Index " 90% 91% 90% 85% 85% 88%
Employee Productivity Rate
Deposits per Employee Rs. Mln 102 95 84 82 74
Advances per Employee Rs. Mln 46 38 40 43 39
PBT per Employee Rs. Mln 4 4 3 2 2
Digital Banking
No. of ATMs Absolute 1.454 1.434 1.360 1.321 1.377 1.191
No. of Debit cards/smart cards issued during the year " 796.215 577.406 652.440 783.233 772.314 666.999
Internet Banking
No. of customers " 204.071 198.939 180.326 176.210 163.273 144.069
No. of transactions " 823.208 691.553 479.278 481.137 509.569 450.333
Volume of transactions Rs. Mln 40.922 29.200 18.452 14.859 12.306 7.971
Mobile Banking
No. of customers Absolute 1,456,681 1,396,475 1,909,71 1,363,304 1,232,258 931.965
No. of transactions - financial " 4,006,237 2,793,156 2,074,362 2,354,765 1,689,324 1,487,899
Volume of transactions Rs. Mln 166.403 78.674 50.2617 48.623 24.597 15.018
Credit Cards
No. of new issuance Absolute 18.828 13.944 16.907 15.245 13.006 11.060
No. of customers " 87.882 84.542 83.070 77.190 70.246 64.075
Total spend (transaction volume) Rs. Mln 11.681 8.327 8.927 7.597 7.054 5.967
Auto Loan
No. of Loans disbursed Absolute 8.706 5.549 5.999 8.266 8.977 6.751
Outstanding Volume Rs. Mln 24.445 19.777 17.929 18.134 16.416 10.811
Home Loan
No. of Loans disbursed Absolute 676 67 62 108 64 44
Outstanding Volume Rs. Mln 8.528 4.733 4.110 4.116 2.909 1.887
Personal Loan
No. of Loans disbursed Absolute 1.293 1.764 2.435 2.766 1.313
Outstanding Volume Rs. Mln 1.519 1.912 2.262 2.707 2.630
Bancassurance
No. of customers Absolute 273.178 232.035 196.633 152.145 119.474 95.434
No. of new customers " 41.143 35.402 44.021 32.671 24.040 22.881
No. of policies " 40.205 35.791 44.208 33.110 26.590 23.223
Bancassurance Premium Rs. Mln 10.756 9.654 8.927 7.060 6.133 4.953
Trade
Imports - volume Rs Mln 759.202 577.281 563.914 483.932 416.489 371.233
Exports - volume . " 408.896 332.396 356.549 302.500 220.912 162.899
Home Remittance
Volume of home remittance USD Mln 3.527 3.206 3.051 3.064 2.281 2.220
Volume of home remittance Rs. Mln 573.711 518.882 455.862 374.431 240.478 232.340
Home Remittance MCB Market Share % 11.40% 12.35% 13.74% 14.88% 11.64% 11.30%
Cash Management
throughput of cash management Rs. Mln 3,020,171 2,082,095 1,884,13 1,673,812 1,500,553 1,210,30
5 3
2016
6,549,452
1.238
11.088
13.84%
88%
70
33
3
1.191
666.999
144.069
450.333
7.971
931.965
1,487,899
15.018
11.060
64.075
5.967
6.751
10.811
44
1.887
316
531
95.434
22.881
23.223
4.953
371.233
162.899
2.220
232.340
11.30%
1,210,30
3
Six Years’ - Performance Commentary
2016 - 2021
In this section, commentary on the six years’ performance 9.47% as at December 31, 2017.
of the Bank is being provided, covering key highlights; In 2021, effective management of Bank’s credit risk by
Statement of Financial Position robust risk management framework has enabled MCB to
Total Assets: performing loan (NPLs) base to the tune of Rs. 698 mil
The asset base of the Bank has registered a remarkable compounded NPL base together with a growing credit book improve
annual growth rate (CAGR) of 12.94% over the last 6 years; ratio from 9.97% in 2020 to 7.74% in 2021. The cove
growing to Rs. 1,970 billion as at December 31, 2021. Prime Bank has improved slightly from 90.19% as at December 3
contributors to the said increase have been advances and as at December 31, 2021. NPLs classified in “loss
investments; with investments growing annually by approximately constitute more than 98.83% of the NPLs base as at Decem
13.25% while gross advances growing by 11.57%. The earning asset mix This specifies the adequacy of provision held in the book
of the Bank has been prudently managed to ensure maximization of
returns to the stakeholders. In 2017, based on the strategic move,
NIB Bank was merged with MCB Bank Limited resulting in a
significant increase in assets of 25%. Furthermore in 2018, 90
branches of the Bank were transferred to a wholly owned subsidiary of
the Bank i.e. MCB Islamic Bank Limited. In 2021, the Bank recorded a 98.87%
60
net growth of Rs. 213 billion in total assets (12.12%) over 2020. 90.83% 87.73% 88.26%
93.74%
50.49 51.19
Advances: 50
45.86
50.61
49.42
48.96 48.7
43.21
During the year under review, the economy witnessed a V shaped
5
43.3
recovery. Improving operating scenario amidst

6
40
30
20
10
uplifting of COVID-19 enforced lock downs, pickup in 0 2020 2019 2018

2021 NPLs Provisions
domestic activity and resurgence of key economic sectors laid the foundation
for a broad based growth in advances across the entire banking industry.
MCB capitalized on
the emerging credit extension opportunities, within its Investments:
defined risk appetite, and posted a remarkable growth of 24% in its Over the past few years, a dearth of quality credit exte
2
credit book (on a gross
0
basis) in 2021 on year on year basis. Over the resulted in the banking sector liquidity being deploye
cumulative period2 of 6 years, the expansionary economic cycle witnessed Government Papers as Government’s borrowing app
at the end of the time
0 analysis improved MCB’s CAGR to 11.57 % grow. The year 2021 witnessed a trend reversal as advance
over the last 6 years as compared to previously reported six year CAGR contribution to expansion in Bank’s asset base on the back o
of 9.75%. recovery driven by improvement in LSM growth and a rise
2
0
confidence index. However, with an average annual growt
1
9
1,600
1,400
6
0
over the last six years, the investment base of the Bank
1,200 1,41
2
2 52.12%
53.18%
% has grown from Rs. 556 billion as at December 31, 2016 to
1,000 01,29 47.17% 47.05%
5 as at December 31, 2021 and still constitutes 52.56% of
800 10 1,145 0
600
45.02% 8 1,04
% (declining from 57.80% in 2020). The duration of the invest
400
200
39.83%
9 96
8
4
0
been proactively monitored amidst the evolving yield curve
0 78 % maximize shareholder returns and optimize liquidity man
63 2
1 3
0
equity book of the Bank consists of investments in diverse
6
510
54
0
54
7
51 % strong fundamentals with a view to earn stable dividends
4 1 5
7 36
2
0
Deposits:
8
%
1
0
2 %
0 0
1 %
2021 6
Gross advances Deposits ADR The deposit base of the Bank has nearly doubled over
Non-performing Loans: the last six years, surpassing the landmark of PKR 1 tr
Strengthened risk management policies coupled with refined credit the absolute number increasing from Rs. 781 billion as at
appetite has enabled the Bank to keep a check on the quality of 2016 to Rs. 1,412 billion as at December 31, 2021. CA
its assets. During 2021, the Bank continued with its trend of registering has been maintained over the past 6 years. CASA base has
significant recoveries to post another year of historic performance; remarkable increase in the last 6 years, increasing from
the total recoveries for the year amounted to Rs. 2.67 billion. The December 31, 2016 to Rs. 1,312 billion as at December 31,
infection ratio of the Bank was 5.90% as at December 31, 2016, however, been strategically achieved through service excellence, s
the transfer of NPL stock from NIB Bank touch points for the customers and transactional convenienc
i.e. Rs. 29.650 billion had increased the infection ratio to a vast range of diversified products.
17.
ent of Bank’s credit risk by leveraging a
mework has enabled MCB to decrease its Non-
to the tune of Rs. 698 million. The lowering
growing credit book improved Bank’s infection
to 7.74% in 2021. The coverage ratio of the
from 90.19% as at December 31, 2016 to 90.83%
1. NPLs classified in “loss” category
of the NPLs base as at December 31, 2021.
y of provision held in the books of the Bank.
93.74%
100
90.19% %
90%
48.7
5 45.7
80%
0 70%
60%
50%
40%
30%
20%
21.6 10%
9 19.5
6
2017 0%
Coverage ratio 2016
dearth of quality credit extension opportunities

tor liquidity being deployed in
Government’s borrowing appetite continued to
ed a trend reversal as advances made a notable
Bank’s asset base on the back of economic
ent in LSM growth and a rise in business
with an average annual growth rate of 13.25%
estment base of the Bank

n as at December 31, 2016 to Rs. 1,036 billion
nd still constitutes 52.56% of the total asset base
20). The duration of the investment portfolio has
midst the evolving yield curve scenario to
s and optimize liquidity management. The
nsists of investments in diverse companies with
ew to earn stable dividends
nk has nearly doubled over
g the landmark of PKR 1 trillion in 2018, with
g from Rs. 781 billion as at December 31,
s at December 31, 2021. CAGR of 12.56%
past 6 years. CASA base has registered a
last 6 years, increasing from Rs. 736 billion as at
12 billion as at December 31, 2021. This has
through service excellence, strategically placed
s and transactional convenience provided through
oducts.
2
0
1
6
D
e
p
o
1,600
1,40092.93% si 94.13%
9
5
whereas, the advances to total asset ratio has
decreased by 2% from the base year. Gross yield on average asse
92.96% 92.86%
1,2001,412 ts 90.42% 91.02% %
1,312
1,000
800 1,29
9
0
over the years and closed at 8.15% in 2021.
600
0
1,19
9 1,14 % • Achieving growth in no-cost current accounts to improve their
400
200
5
1,03 1,04 8
5
the total deposit and align it with a balanced mix of earning assets bas
C 5 9 95 96
0 A
5 8 89
9
% the forefront of MCB’s key strategic focus; in turn lending support t
S
78
1 73
8
0
interest margins. CASA base of the Bank has thereby remained above 9
A 6
% period covered by the time analysis despite a CAGR of 12.56
7
5
total deposit base.
% Non-Markup Income
7
C 0
A %
S 6
A 5
R %
at 6
io 0
2021
%
Equity and Dividends 5 • During the last six years, fee & commission income
5
• The paid-up capital of the Bank has grown from Rs. % and capital gains have been the major drivers behind non-fund income
11.13 billion as at December 2015 to Rs. 11.8 billion as at December 5 the exception of 2020 wherein the realization of various systematic and
0
31, 2021, meeting the statutory capital requirements set by the % factors, emanating from the COVID-19 outbreak, impacted Banks i
State Bank of Pakistan (SBP). the fee & commission income has witnessed a broad based g
• In 2008, most affluent strategic partnership occurred years on the back of new products and services added to the menu c
in Pakistan where the largest Bank of Malaysia, Maybank Berhad, banking and branchless initiatives taken by the Bank. The product deve
acquired 20% holding in MCB Bank Limited (current holding of the Bank have been tapping the unbanked segments of the population a
18.78%. Holding diluted due to issuance of shares under the merger tailored products to meet their specific financial requirements. D
scheme). In 2017, Fullerton Financial Holdings (International) of products have been offered in order to meet the needs of the time like c
Singapore through Bugis Investments (Mauritius) Pte Ltd acquired banking, visa debit card etc.
5.49% stake in MCB under merger scheme of NIB Bank with and • The fee, commission and brokerage block of the Bank have be
into MCB Bank Limited. contributors to its bottom line growth; major thrust to the income h
• The equity base of the Bank is reflective of the by commission earned on card business, bancassurance business, and
outstanding financial results achieved through consistent intercity / intra-city cash transfers.
performance posted over the years. The capital base of the Bank is rated • The equity book of the Bank consists of investments in diverse com
as strong which is substantiated by the reported CAR of 17.01% as at fundamentals and has been a stable contributor to the non-markup
December 31, 2021 against the statutory requirement of 11.50%. The providing outstanding dividend yields. During the past 6 years, above
Shareholders’ equity has grown significantly from Rs. 118 billion as been realized by way of capital gains and dividend income.
at December 31, 2016 to Rs. 160 billion as at December 31, 2021. Rs. in Millions
• The Bank has the highest cash dividend per share in the industry
with regular interim dividends and remains one of the prime stocks
preferred in the Pakistani equity markets.
Profit and Loss account 14,000

12,000
Net Interest Margin 10,000
8,000 20
• The composition of markup income has seen a shift in the last six 6,000 20
years on the back of concentration shift in the earning asset base of the 4,000
2,000
Bank. The contribution from markup income earned on advances in the 0
20
total markup income mix had increased from 34.06% in 2016 to 19
41.46% in 2019 while the contribution from markup income on
investments declined from 65.62% to 54.58% over the same period. 20
However, diversion of excess liquidity towards the investment book due 18
to lack of good credit opportunities in the
20
17
20
2021 16
subsequent years diluted concentration of advances Fee & commission income
Dividend income
related markup income in the income mix and led to a fall in their contribution to
26.86% in 2021.
• The investment to total asset ratio has increased slightly from 51.84% in
2016 to 52.56% in 2021;
to total asset ratio has
m the base year. Gross yield on average assets has also improved
d at 8.15% in 2021.
in no-cost current accounts to improve their contribution in
lign it with a balanced mix of earning assets base has remained at
key strategic focus; in turn lending support to the Bank’s net
base of the Bank has thereby remained above 90% throughout the
time analysis despite a CAGR of 12.56% achieved in the
x years, fee & commission income

een the major drivers behind non-fund income growth. Apart from
herein the realization of various systematic and idiosyncratic
the COVID-19 outbreak, impacted Banks income streams,
n income has witnessed a broad based growth over the
new products and services added to the menu coupled with remote
initiatives taken by the Bank. The product development teams of
ping the unbanked segments of the population and offering them
et their specific financial requirements. Different types of
red in order to meet the needs of the time like credit card, mobile
etc.
on and brokerage block of the Bank have been constant
m line growth; major thrust to the income has been provided
n card business, bancassurance business, and remittances and
transfers.
the Bank consists of investments in diverse companies with strong
een a stable contributor to the non-markup income by
dividend yields. During the past 6 years, above Rs. 26 billion have
capital gains and dividend income.
Foreign exchange income

Gain on securities
Provisions and write offs
The Bank’s risk management platform is being driven by an
augmented framework of sound risk principles, optimum organizational
structure, robust risk assessment models and effective monitoring systems
in an IT enabled environment to effectively identify, evaluate and mitigate all
risks undertaken in the achievement of its long-term strategic objectives. The
captioned platform has formed the basis for a declining trend in provision
charge booked against advances over the years; in fact, the Bank’s has
been able to post significant provision reversals up till year 2019 on the
back of extensive recovery efforts undertaken.
During 2020, however, the Bank has witnessed a trend reversal in
recognition of provision against advances. The subjective
classification of obligor accounts on a prudent basis coupled with
an additional recognition of general provision charge, amounting to Rs. 4
billion, in anticipation of the impact realization of COVID-19 pandemic
post expiration of SBP’s relaxations and waivers in 2021 were the prime
contributors to the captioned increase.
During 2021, as part of the continuous credit assessment process,
the Bank, while creating specific provisions against exposures that
reflected signs of financial distress, have reversed the general
provision charge created in the preceding year as the systematic risks
surrounding the economic recovery receded. The Bank has not taken any
benefit of FSV in its provision calculation.
Operating expense:
Considering expansion in Bank’s branch outreach, continued investment
in technological infrastructure, regular performance merit adjustments
for the Human Capital, rising regulatory compliance costs and
sustained inflationary patterns witnessed over the period of six
years, the posted growth in the administrative block of the Bank has
been kept in strict check through introduction of cost effective
techniques/methods; automation led saving initiatives, centralization
of operations and imposition of annual capping’s have been the key pillars of
cost management drive undertaken by the Bank and have laid the basis for
the Bank to boast one of the lowest cost to income ratios in the industry.
Profit before tax and Profit after tax:
• MCB Bank has been able to post outstanding profitability numbers
over the period of last six years as substantiated by one of the highest
industry EPS and a remarkable return on assets ratio.
• The aggregate profit after tax for the last six years has
approximated Rs. 150 billion.
• Profitability ratios have been one of the best in the banking
industry which are reflective of effective management of the affairs
and adoption of prudent strategies.
Other statistics
• The Bank has added almost 2 million bank accounts to its base during the
past 6 years with the current statistics highlighting the bank accounts to be
over
8.3 million.
• With active participation in trade, MCB Bank has been
able to improve its trade volumes in the last 6 years; the volumes have more
than doubled as compared to the base year to reach Rs. 759 billion for imports
and Rs. 409 billion for exports respectively.
• The Bank has been able to increase its market share in the remittance
business growing from Rs. 232 billion in 2016 to the volume of Rs. 574
billion in 2021. The home remittance inflows for 2021 stood at USD
3.527 billion and hence further consolidated MCB’s position as an active
participant in SBP’s cause for improving flow of foreign reserves into the
country through banking channels.
• In 2008, the Bank launched Bancassurance which was a unique
cross functional service to the customers of the Bank. With only 131 policies
and
129 customers in 2008, MCB Bank has issued 40,205 new policies in
2021; with the premium underwritten amount exceeding Rs. 3 billion.
• MCB Bank launched mobile banking in 2009 with approximately 53K
customers reported by the end of the 2009. As of 2021, the mobile
customers, including registered users on MCB Live, have grown to 1.45 million
with a transaction volume of over Rs. 166 billion.
• In 2015, MCB Annual Report had been honored to receive 1st place
by South Asian Federation of Accountant (SAFA) for best presented
Annual Accounts 2014. MCB was the 1st Pakistani bank to receive this
accolade. In the past years, we have been awarded merit certificate and
runner up awards for the same.
• In 2016, the Bank was awarded Best Bank in the “Corporate Finance
and Investment Banking” by Euro Money Awards. We have also been
awarded Best Bank in the Finance Asia Country Awards during the recent past
years.
• The Bank has been continuously focusing on CPEC related infrastructure
projects and has been able to achieve various awards on outstanding
performance under CPEC arrangements. In this regard, the Bank received the
award for Best Regional Bank in South Asia for BRI (Belt & Road Initiative) -
Asiamoney New Silk Road Finance Awards 2017.
• In 2019, the Bank was declared as the “Most Outstanding Company
in Pakistan” in the financial sector category by Asiamoney.
• In 2021, MCB’s Annual Report was adjudged winner of the “Best
Corporate Report” award in the financial sector category for the 9th
consecutive year. Moreover, for the very first time, MCB’s annual report
was adjudged as the “Overall Best Corporate Report” across all industry sectors.
• In 2021, The Bank’s exceptional performance has also been recognized
by the globally coveted Finance Asia’s Country Awards wherein it has been
bestowed with the “Best Bank in Pakistan” award.
h
a
r
e
Six Years’ - Graphical Summary of Ratios

2016 - 2021 I
n
105 19.11% v 2 18.94%
18.88%
95 e 5 17.65%
16.84%
85 s 2 15.48%
75 t 0
m
65 1
e
55 n 5
45 t 1
35 s 0
25 5
15 t 0
o
2
d 0
e 2
p 0
o
s
i
26.00 t
2021 s 24.50
Profit before tax ratio G C A R
r R
30 r o 20.23 d et
e 19.56 19.67
a o st
25 t 18.02m ur
t s to i n
20 i u 2.16%
s in n o
15 o r 1.86%
s 1.77% c e n
1.65% n
10 p o 1.59% 1.50% x a
5 r
o
m p v
0 e e t er
n
a ra o a
2021
d ti p g
A
o r e
s
o e
s
fi q
e
t ui
s
b ty
t
e (
s
f R
o O
(
r E)
R
e 92.86% 94.13%
92.93% O
92.69% 90.42% 91.02% t
A
a
)
2 x
99 C 0
91 73.35% A
1 71.43% 71.14%
83 S 78.78%
A 9 65.41% 67.83%
75
67 t
59 o 52.12% 53.18%
51 47.17%
t 47.07%
43 45.02%
35 o 39.83%
t
2021 a
l
d
e
p
o
s
i
t
s
2
0
1
8
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Six Years’ - Concentration of Advances, NPLs and Off
Balance Sheet Items 2016 - 2021
Gross Advances
100
80
60
40
20
0 2020 2019 2018 2017 2016

2021
Agriculture, forestry, hunting and fishing Textile C C T
Chemical, Petroleum and pharmaceuticals e o r
m n a
e s n
n t s
t r p
Classified Advances S
u
c
o
r
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a g o
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d a m
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0 2020 2019 2018 2017 2016
2021
Agriculture, forestry, hunting and fishing Textile C C T
Chemical, Petroleum and pharmaceuticals e o r
m n a
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t r p
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Off Balance Sheet Item S
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2021 d 2020 2019 a 2018 2017 m 2016
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2017 2016
I
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2017 2016
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Six Years’ - Maturities of Assets & Liabilities
2016 - 2021
1,000
900
M
800 at
700
600 ur
500 iti
714
400
300 e
200
100
s
0 of
A
ss 257
et
s
20
21
Maturities of Liabilites
800
700
20
600 20
500 403
400
300
200
228
100
20
19
0
2021 2020 2019 2018 2017 2016
Upto 3M 3M to 1Y 1Y to 3Y 3Y to 5Y 5Y & Above
20
*Based on expected
18 maturities
20
17
20
16
Upto
3M
3M
to
1Y
1Y
to
3Y
3Y
to
5Y
5Y &
Abov
e
ix Years’ - Maturities of Assets & Liabilities
016 - 2021
908
804
699
560
545
489
335
316
264 266 289
265 252
223
194 201 199
155 148 152 139 144
134 119
103 104
85 79
677 658
of Liabilites
559
469
457
409
392
346 339
308
293 280
250 245
235
204
160 143 150
142 138 138
125
107
87 75
78 72
2020 2019 2018 2017 2016

3M to 1Y 1Y to 3Y 3Y to 5Y 5Y & Above
ased on expected maturities

DuPont Analysis
2021 2020 2019 2018 2017
Net Operating Margin PAT / Total Income A 36.65% 32.45% 31.43% 33.79% 36.95%
Asset Utilization Total Income / B 4.51% 5.47% 5.06% 4.45% 5.03%

Average Assets
Return on Assets C=AxB 1.65% 1.77% 1.59% 1.50% 1.86%
20
Equity Multiplier Average Assets / 20 D 11.56 10.64 10.58 10.29 9.49
Average Equity
Return on Equity CXD 19.11% 18.88% 16.84% 15.48% 17.65%
Following are the main DuPont analysis highlights:
1) Net operating margin has dropped during 2016-2018; and improved in 2019 - 2021.
20
19
2) Asset utilization has dropped in 2021 due to falling total income on account of lower average yield on earning
assets.
3) Equity Multiplier showing increasing trend since 2016 due to higher profits.
40% 36.65 36.95 36.49
35% % 20 33.79 % %
32.45
30% %
18 % 31.43
25% %
19.11 18.94
20% % 17.55 %
18.88 16.84
15% % % 15.48
%
10% %
5%
0% 20
17
5.47 5.06 5.06 5.78
4.51 4.45
% % % %
% %
20
2021 16
Net operating Margin Asset Utilization Return on Equity
2016
36.49%
5.78%
2.11%
8.99
18.94%
ld on earning
25
%
20
%
18.94
% 15
%
10
%
5
%
5.78 0
%
%
Summary of Cash Flows
Rupees in million
2021 2020 2019 2018
Cash flows from operating activities 110.719 285.808 48.192 143.221
Cash flows from / (used in) investing activities (39.027) (270.459) 6.681 (118.767)
*Cash flows used in financing activities (35.722) (13.433) (20.603) (18.794)
Cash and cash equivalents at beginning of the year 145.814 143.898 109.628 103.968
Cash and cash equivalents at end of the year 181.783 145.814 143.898 109.628
Commentary of Cash Flow Statement
Operating cash flows depict cash inflows generated from core activities of the Bank i.e. Deposit generation. In 2021, cash flows genera
operating activities were Rs. 110.7 billion which had decreased significantly when compared with Rs. 285.8 billion in 2020; the dep
net borrowings from financial institutions (net off of lending) contributed cash inflows of Rs. 201.2 billion which were mainly utilize
advances.
The investing activities posted a cash outflow for the 2nd straight year; however, the volume of outflows remained significan
preceding year as the majority of operating inflows were diverted towards augmenting the credit book of the Bank.
Cash outflow from financing activities primarily reflect payments on account of dividends to the shareholders. During 2021, financing c
a significant rise, on a year on year basis, as a result of low dividend payout base in 2020 on the back of directives issued by the State Bank
to suspend dividend distribution for two quarters of the year as a precautionary measure to conserve capital and enhance liquidity and stress absorp
banks amidst the ongoing COVID-19 outbreak. MCB’s track record of paying the highest dividend per share in the financial sector has meant th
paid over Rs. 100 billion in quarterly and annual payouts over the last 5 years.
400
285.8
143.2
110.7
121.0
48.2
6.7 21.6 11.0
(39.0) (35.7)
(13.4) (20.6) (18.8) (22.8) (17.9)
(72.7)
(118.8)
(270.5)
300
200
100
0
-100
-200
-300
-400 2021 2020 2019 2018 2017 2016

Operating Activities Investing Activities *Financing Activities
*Net Cash from financing activities include effects of exchange rate changes
Free Cash Flows

Rupees in million
2021 2020 2019 2018
Profit before taxation 51.989 48.249 40.102 32.064
Adjustment for non-cash items (1.833) 11.687 6.174 264
Operating assets/ liabilities changes 60.563 225.872 1.916 110.893
Net cash generated from operating activities 110.719 285.808 48.192 143.221
Capital expenditure (3.121) (3.090) (5.022) (4.483)
Free cash flows 107.598 282.718 43.170 138.738
Free cash flow is the cash a company produces through its operations, less the cost of expenditures on assets. In other words, free cash
flow—or FCF—is the cash left over after a company pays for its operating expenses and capital expenditures, also known as CAPEX.
Rupees in million
2017 2016
121.010 21.593
(72.671) 11.043
(22.777) (17.912)
78.406 63.682
103.968 78.406
eration. In 2021, cash flows generated from

Rs. 285.8 billion in 2020; the deposit growth and
1.2 billion which were mainly utilized to fund Bank’s
e of outflows remained significantly lower than the

k of the Bank.
eholders. During 2021, financing cash flows posted

of directives issued by the State Bank of Pakistan (SBP)
nd enhance liquidity and stress absorption capacity of the
in the financial sector has meant that the Bank has
2016
Rupees in million
2017 2016
31.014 36.075
882 1.525
89.114 (16.007)
121.010 21.593
(4.745) (3.485)
116.265 18.108
s, free cash
s CAPEX.
Cash Flow Statement
Direct Method 2021 2020
(Rupees in Million)
Cash flows from operating activities

Mark-up / return / interest and commission receipts 136.175
Mark-up / return / interest payments (55.478)
Payments to employees, suppliers and others (30.968)
49.729
Decrease / (increase) in operating assets
Lendings to financial institutions (25.328)
Net investments in ‘held for trading’ securities 1.297
Advances - net (121.905)
Other assets (955)
(146.891)
(Decrease) / increase in operating liabilities
Bills payable 609
Borrowings 104.261
Deposits and other accounts 122.349
Other liabilities 2.159
229.378
132.215
Income tax paid (21.497)
Net cash flows from operating activities 110.719
Cash flows from investing activities
Net investments in ‘available for sale’ securities (35.187)

Net investments in ‘held to maturity’ securities (6.277)
Dividends received 2.281
Investments in operating fixed assets (2.764)
Investments in intangible assets (357)
Sale proceeds of operating fixed assets and intangible assets disposed off 399
Proceeds from sale of non-banking assets acquired in satisfaction of claims 2.053
Proceeds from divestment in a subsidiary –
Exchange differences on translation of the net investment in foreign branches 825
Net cash flows from / (used in) investing activities (39.027)
Cash flows from financing activities
Dividend paid (34.037)

Payment of lease liability against right-of-use-assets (1.685)
Net cash flows used in financing activities (35.722)
Effects of exchange rate changes on cash and cash equivalents 5.342
Increase in cash and cash equivalents 41.311

Cash and cash equivalents at beginning of the year 140.472
Cash and cash equivalents at end of the year 181.783
Cash flow statement in annual financial statement is required to be prepared in line with the format prescribed by State
Bank of Pakistan under BPRD Circular No .2 dated 25, 2018, 'Revised Forms of Annual Financial statements.
2021 2020
(Rupees in Million)
159.662
(84.595)
(29.162)
45.905
(16.049)
8.180
26.262
2.977
21.370
12.159
75.448
144.739
2.265
234.611
301.886
(16.078)
285.808
(286.438)
17.363
1.180
(2.791)
(299)
187
39
100
201
(270.458)
(11.751)
(1.682)
(13.433)
1.595
3.511
142.303
145.814
the format prescribed by State
Financial statements.
Markup & Non Markup Income
Rupees in Million
2021 2020 2019 2018 2017 2016
Markup Income
Loans and advances 33.123 42.879 57.330 36.964 26.931 22.956
Investments 89.523 91.983 75.481 44.719 46.876 44.226
Lendings to Financial Institutions 567 998 4.982 1.390 174 122
Balance with banks 122 215 499 246 111 97
123.334 136.076 138.292 83.319 74.091 67.400
Markup Expense
Deposits 47.107 55.095 65.344 32.081 22.105 18.313

Borrowings 9.717 6.152 8.977 4.253 8.837 4.556
Subordinated loan – – 214 308 138 –
Unwinding cost of liability against
right-of-use assets 1.610 2.387 1.132 – – –
Others 914 1.107 3.009 663 349 717
59.347 64.741 78.676 37.305 31.429 23.586
Net Markup Income 63.987 71.334 59.616 46.014 42.662 43.814

Non Markup Income
Fee & commission Income 12.440 10.936 11.288 10.731 9.741 7.640
Dividend Income 2.251 1.210 1.377 1.280 1.941 1.456
Foreign exchange income 3.748 2.525 2.895 3.420 1.636 912
Gain on securities 811 3.336 833 1.293 4.741 5.679
Other Income 823 128 286 474 58 488
20.074 18.136 16.679 17.198 18.118 16.175
Markup Income from Advances and Investments Income Composition (2016-2021)
(2016-2021)
100 100
80 80
60 60
40 40
20 2
0
2021 0
0
2020 2019 2018 2017 2016 2020 2019 2018 2017 2016
Income on Adances to Markup income Income on Investments to Markup income Net Markup Income to Gross Markup Net Markup Income to Net Revenue
2
0
2
1
Rupees in Million
018 2017 2016
22.956
44.226
122
97
67.400
18.313
4.556
–
–
717
23.586
43.814
7.640
1.456
912
5.679
488
16.175
21)
venue
Operating Expenses
Rupe
2021 2020 2019 2018 2017
Total compensation expense 16.940 15,806 14,585 14,053 12,301 9,111
Property expense
Rent & taxes Insurance Utilities cost Fuel 193 161 227 1,959 1,526
Expense 21 23 21 26 27
Security (including guards) 1,567 1,218 1,203 1,095 911
Repair & maintenance (including janitorial charges) 414 335 534 514 459
Depreciation on right-of-use assets Depreciation 1,506 1,240 1,382 1,603 1,392
Information technology expenses 716 653 812 945 790
Software maintenance Hardware maintenance 1,202 1,217 1,162 - 458 - 383
Depreciation Amortization 710 642 504
Network charges Insurance
Other operating expenses
Directors’ fees and allowances Legal & 6.329 5,488 5,845 6,599 5,487 4,400
professional charges Outsourced services costs
Travelling & conveyance
NIFT clearing charges Depreciation 1,097 1,148 1,188 1,151 863
Depreciation on non-banking assets 185 212 299 364 349
Training & development Postage & courier 619 548 616 721 690
317 318 301 256 244
charges Communication
518 598 601 616 621
Stationery & printing
3 4 3 4 5
Marketing, advertisement & publicity
Donations
Auditors Remuneration Cash transportation 2,740 2,829 3,009 3,112 2,772 2,572
charges Repair & maintenance Subscription 46 50 57 41 39 35
Entertainment 268 268 350 302 328 265
Credit Card Related Expenses CNIC verification 766 692 690 1,119 1,167 818
charges Insurance 272 261 321 343 293 396
Others 154 166 152 146 136 126
Operating Expenses excluding compensation Total 847 816 797 802 656 544
operating expenses 36 30 45 49 30 29
35 37 57 51 60 51
236 234 303 271 323 247
365 326 373 317 384 306
587 563 639 704 646 543
778 695 625 518 531 483
8 113 0 1 12 13
57 30 30 34 41 24
860 709 799 744 631 551
445 402 416 460 513 403
13 21 20 24 18 27
203 184 232 233 235 186
992 829 1,182 738 562 415
262 129 207 138 107 76
1,668 1,483 1,441 821 254 236
474 486 493 473 431 215
50.77
9.372 8,523 9,232 % 8,327

46.00 7,397 5,991
42.09 42.82 %
18.441 %
16,840
36.49 18,086
%
18,038 15,657
36.80 12,963
% %
35.381 32,646 32,671 32,091 27,958 22,074
Cost to income ratio
60
50
40
30
20
10
0
2021 2020 2019 2018 2017 2016
Rupees in Million
20 2019 2018 2017 2016
9,111
1,047
24
739
368
1,178
660
- 385
7 4,400
763
239
644
366
554
6
,112 2,772 2,572

41 39 35
02 328 265
119 1,167 818
43 293 396
146 136 126
802 656 544
49 30 29
51 60 51
71 323 247
317 384 306
04 646 543
18 531 483
1 12 13
34 41 24
744 631 551
60 513 403
24 18 27
233 235 186
738 562 415
138 107 76
821 254 236
473 431 215
7 5,991
12,963
22,074
Economic Value Added Statement
2021 2020
( Rupees in Million)
Invested Capital
Average shareholders’ equity 161,259 153,800

Add: Cumulative provisions against assets 59,232 63,844
220.491 217.644
Return on Invested Capital

Profit after taxation 30,811 29,037
Add: Provisions and write offs - net (4,823) 7,313
Total return on invested capital 25,988 36,350

Economic cost 8.38% 11.37%
Opportunity cost of invested capital 18,477 24,746
Economic Value Added 7,511 11,604
(Rupees in Million)
Economic Value Added

Total Return on Invested Capital 2020
2021
Opportunity Cost of Invested Capital
Invested Capital
0 50,000 100,000 150,000 200,000 250,000

Comments:
Decrease in EVA as compare to last year is due to reversal of provision in 2021 and decrease in economic cost due to lower average policy rate dur
Capital expenditures
Capital expenditure during the year:
The total capital expenditure during 2021 was Rs. 3.12 billion for business expansion, renovation and improvement of IT infrastructure.
Capital expenditures planned for next year:

The Bank has budgeted capital expenditure of Rs. 8.7 billion for the next year. This would primarily be invested in increasing our opera
continuous improvement in our Information Technology platforms, safeguarding our existing infrastructure / relationships from growing threats on
along with normal replacements to ensure smooth operations.
153,800
63,844
217.644
29,037
7,313
36,350
11.37%
24,746
11,604
(Rupees in Million)
50,000
c cost due to lower average policy rate during the year.
provement of IT infrastructure.
marily be invested in increasing our operational outreach,

ure / relationships from growing threats on cyber security front
Six Years' Vertical Analysis
Statement of Financial Position/Profit & Loss
2021 2020 2019 2018 2017 2016
Rs. Mln % Rs. Mln % Rs. Mln % Rs. Mln % Rs. Mln % Rs. Mln %
Assets
Cash and balances with treasury banks 164.613 8% 122.181 7% 132.705 9% 103.175 7% 106.072 8% 74.222
Balances with other banks 18.830 1% 24.030 1% 12.542 1% 11.879 1% 4.579 0% 4.344
Lendings to financial institutions 42.467 2% 17.139 1% 1.090 0% 35.106 2% 4.398 0% 2.810
Investments 1,035,58 53% 1,015,86 58% 748.765 49% 749.369 50% 656.964 49% 555.929
Advances 589.7115 30% 462.9429 26% 496.679 33% 503.581 34% 469.356 35% 348.117
Fixed assets 57.328 3% 58.028 3% 58.271 4% 40.812 3% 39.170 3% 32.409
Intangible assets 979 0% 938 0% 958 0% 630 0% 404 0% 343
Other assets 60.955 3% 56.334 3% 64.143 4% 53.578 4% 62.295 5% 54.191
1,970,46 100% 1,757,46 100% 1,515,152 100% 1,498,130 100% 1,343,23 100% 1,072,365
8 2 8
Liabilities
Bills payable 24.590 1% 23.981 1% 11.822 1% 15.699 1% 22.681 2% 12.844

Borrowings 269.526 14% 164.002 9% 89.506 6% 216.019 14% 133.070 10% 74.515
Deposits 1,411,85 72% 1,289,50 73% 1,144,763 76% 1,049,038 70% 968.483 72% 781.430
Sub-ordinated loan 2- - 2- - - - 3.891 0% 3.893 0% -
Deferred tax liabilities 729 0% 6.975 0% 5.851 0% 1.532 0% 4.625 0% 11.260
Other liabilities 89.365 5% 82.901 5% 94.296 6% 62.673 4% 56.921 4% 50.690
1,796,06 91% 1,567,36 89% 1,346,237 89% 1,348,852 90% 1,189,67 89% 930.739
1 1 2
Net Assets 174.407 9% 190.102 11% 168.915 11% 149.278 10% 153.566 11% 141.627
Represented by
Share capital 11.851 1% 11.851 1% 11.851 1% 11.851 1% 11.851 1% 11.130

Reserves 84.602 4% 80.696 5% 77.591 5% 74.148 5% 70.866 5% 53.347
Surplus on revaluation of
assets - net of tax 14.272 1% 27.720 2% 23.695 2% 9.747 1% 17.073 1% 23.680
Unappropriated profit 63.683 3% 69.835 4% 55.777 4% 53.532 4% 53.776 4% 53.469
174.407 9% 190.102 11% 168.915 11% 149.278 10% 153.566 11% 141.627
Mark-up earned 123.334 86% 136.076 88% 138.292 89% 83.319 83% 74.091 80% 67.400
Mark-up expensed (59.347) -41% (64.741) -42% (78.676) -51% (37.305) -37% (31.429) -34% (23.586)
Net mark-up income 63.987 45% 71.334 46% 59.616 38% 46.014 46% 42.662 46% 43.814
Non-mark-up income 20.074 14% 18.136 12% 16.679 11% 17.198 17% 18.118 20% 16.175
Total income 84.061 59% 89.470 58% 76.295 49% 63.212 63% 60.780 66% 59.989
Non-mark-up expenses (36.894) -26% (33.908) -22% (33.709) -22% (32.902) -33% (28.721) -31% (22.989)
Profit before provisions 47.167 33% 55.562 36% 42.586 27% 30.310 30% 32.059 35% 36.999
Provisions & write off 4.823 3% (7.313) -5% (2.484) -2% 1.753 2% (1.045) -1% (925)
Profit before taxation 51.989 36% 48.249 31% 40.102 26% 32.064 32% 31.014 34% 36.075
Taxation (21.178) -15% (19.212) -12% (16.125) -10% (10.704) -11% (8.555) -9% (14.184)
Profit after taxation 30.811 21% 29.037 19% 23.977 15% 21.360 21% 22.459 24% 21.891
7%
0%
0%
52%
32%
3%
0%
5%
100%
1%
7%
73%
-
1%
5%
87%
13%
1%
5%
2%
5%
13%
81%
-28%
52%
19%
72%
-28%
44%
-1%
43%
-17%
26%
Six Years' Horizonta
2021 21 vs 20 2020 20 vs 19 2019 19 vs 18 2018 18 vs 17 2017 17 v
Rs. Mln % Rs. Mln % Rs. Mln % Rs. Mln % Rs. Mln
Assets
Cash and balances with treasury banks 164.613 35% 122.181 -8% 132.705 29% 103.175 -3% 106.072 43% 74.222
Balances with other banks 18.830 -22% 24.030 92% 12.542 6% 11.879 159% 4.579 5% 4.344
Lendings to financial institutions 42.467 148% 17.139 1472% 1.090 -97% 35.106 698% 4.398 57% 2.810
Investments 1,035,585 2% 1,015,86 36% 748.765 0% 749.369 14% 656.964 18% 555.929
Advances 589.711 27% 462.9429 -7% 496.679 -1% 503.581 7% 469.356 35% 348.117
Operating fixed assets 57.328 -1% 58.028 0% 58.271 43% 40.812 4% 39.170 21% 32.409
Intangible assets 979 4% 938 -2% 958 52% 630 56% 404 18% 343
Other assets 60.955 8% 56.334 -12% 64.143 20% 53.578 -14% 62.295 15% 54.191
1,970,468 12.12 1,757,46 15.99% 1,515,15 1.14% 1,498,13 11.53% 1,343,238 25.26% 1,072,365
% 2 2 0
Liabilities
Bills payable 24.590 3% 23.981 103% 11.822 -25% 15.699 -31% 22.681 77% 12.844
Borrowings 269.526 64% 164.002 83% 89.506 -59% 216.019 62% 133.070 79% 74.515
Deposits 1,411,852 9% 1,289,50 13% 1,144,76 9% 1,049,03 8% 968.483 24% 781.430
Sub-ordinated loan - - 2- - 3- -100% 8
3.891 0% 3.893 100% -
Deferred tax liabilities 729 -90% 6.975 19% 5.851 282% 1.532 -67% 4.625 -59% 11.260
Other liabilities 89.365 8% 82.901 -12% 94.296 50% 62.673 10% 56.921 12% 50.690
1,796,061 15% 1,567,36 16% 1,346,23 0% 1,348,85 13% 1,189,672 28% 930.739
1 7 2
Net Assets 174.407 -8% 190.102 13% 168.915 13% 149.278 -3% 153.566 8% 141.627
Represented by
Share capital 11.851 0% 11.851 0% 11.851 0% 11.851 0% 11.851 6% 11.130

Reserves 84.602 5% 80.696 4% 77.591 5% 74.148 5% 70.866 33% 53.347
assets - net of tax 14.272 -49% 27.720 17% 23.695 143% 9.747 -43% 17.073 -28% 23.680
Unappropriated profit 63.683 -9% 69.835 25% 55.777 4% 53.532 0% 53.776 1% 53.469
174.407 -8% 190.102 13% 168.915 13% 149.278 -3% 153.566 8% 141.627
Mark-up earned 123.334 -9% 136.076 -2% 138.292 66% 83.319 12% 74.091 10% 67.400
Mark-up expensed (59.347) -8% (64.741) -18% (78.676) 111% (37.305) 19% (31.429) 33% (23.586)
Net mark-up income 63.987 -10% 71.334 20% 59.616 30% 46.014 8% 42.662 -3% 43.814
Non-mark-up income 20.074 11% 18.136 9% 16.679 -3% 17.198 -5% 18.118 12% 16.175
Total income 84.061 -6% 89.470 17% 76.295 21% 63.212 4% 60.780 1% 59.989
Non-mark-up expenses (36.894) 9% (33.908) 1% (33.709) 2% (32.902) 15% (28.721) 25% (22.989)
Profit before provisions 47.167 -15% 55.562 30% 42.586 40% 30.310 -5% 32.059 -13% 36.999
Provisions & write off 4.823 -166% (7.313) 194% (2.484) -242% 1.753 -268% (1.045) 13% (925)
Profit before taxation 51.989 8% 48.249 20% 40.102 25% 32.064 3% 31.014 -14% 36.075
Taxation (21.178) 10% (19.212) 19% (16.125) 51% (10.704) 25% (8.555) -40% (14.184)
Profit after taxation 30.811 6% 29.037 21% 23.977 12% 21.360 -5% 22.459 3% 21.891
Years' Horizontal Analysis
nt of Financial Position/ Profit & Loss
18 2018 18 vs 17 2017 17 vs 16 2016 16 vs 15
% Rs. Mln % Rs. Mln % Rs. Mln %
23%
20%
-9%
-2%
14%
11%
-53%
45%
7%
8%
-37%
12%
-
-1%
78%
7%
3%
0%
4%
-4%
5%
3%
-16%
-24%
-11%
-2%
-9%
0%
-14%
40%
-15%
-15%
-14%
Commentary on Six Years' Horizontal & Vertical
Analysis
Horizontal Analyses in the earning assets base contributed to the significan
The asset base of the Bank has increased considerably over the past 6 rise. The increase in markup expense on deposits is on
years and has crossed multiple milestones; including the landmark regulatory revisions by the Central Bank and volumetri
achievement of crossing an asset base of Rs. 1.5 trillion in 2019. On an in the deposit base. The cost of deposit for the Bank has
annualized basis, the asset base of the Bank has recorded an increase of managed by maintaining appropriate CASA base to align it
12.94% over the base year while the investments and gross advances mix of the Bank. However, the total markup expense ha
have posted an increase of 13.25% and 11.57% respectively. Highest 20.27% over the six year period under coverage.
increase in the asset base has been observed in 2017 as the transfer of The non-markup income block of the Bank has remained a
portfolio on account of merger of NIB Bank with and into MCB to its bottom line growth. On the other hand, growth i
Bank Limited added to the asset base; the assets hence growing by 25% on expenses has been kept in check through realization of
a year on year (YoY) basis in 2017. implemented as part of Bank’s cost management dr
45%
35%
depicting a moderate average growth of 9.92% over the
25% despite continuous investment in Banks digital and phys
15%
5%
along with sustained inflationary pressures.
-5% One of the key strengths of the Bank has been the rec
classified portfolio which is clearly reflected in the redu
charge booked over the last few years barring the exception
the
36% 35%
27%
18%
13% 13% 14% 14%
8%
7%
3%
2%
0% -2%
-1% -3%
-8% -7%
-15%
2021 2020 2019 2018 2017 2016 management had proactively booked a general provision
Investments Advances Net Assets charge of Rs. 4.0 billion in anticipation that the customers
affected by the pandemic might require provisioning once S
and waivers expire post year end.
The deposit base of the Bank has registered significant This coupled with the subjective provisioning of obligo
growth over the years; increasing from Rs. 781 billion in 2016 to accounts on a prudent basis resulted in trend reversal for re
Rs. 1,412 billion in 2021 and translating into a CAGR of 12.56% charge in 2020.
over the past 6 years. Highest increase has been reported in 2017, In 2021, the Bank registered another year of sign
primarily on account of splendid volumetric growth coupled with against its classified portfolio. The historic recoverie
deposits transferred under merger of NIB Bank with and into MCB Bank reversal of general provision charge, created in the prece
Limited. During the year 2018, MCB transferred business of its 90 back of receding systematic risks surrounding the ec
branches to MCB’s wholly owned subsidiary i.e. MCB Islamic Bank to a net reversal in credit charge for 2021.
Limited and deposits amounting to Rs. 21.9 billion were transferred MCB enjoys one of the highest spreads in the banking indu
under the de-merger scheme. Despite this transfer, the deposits grew reflected in the profitability ratios of the Bank.
by 8.32% in 2018 and have continued on the path of upward trajectory in
subsequent years; posting a healthy CAGR of 11.05% from 2019 to
2021.
Equity base of the bank has also posted a healthy increase 60
50
due to higher profitability in the past 6 years; translating into a CAGR 40
52.0
of 6.31% over the base year. 30
20
48.2
On the Profit and Loss side, gross markup earned has posted an 10
0 1.65%
average increase of 12.85% over a span of six years. This is due to the 2021
increase in mark up earned on investments and advances on the back of 30.8
an ever increasing earning assets base and the evolving yield curve
scenarios. The highest gross markup income over the span was
reported in 2019; as the double digit policy rate coupled with healthy
volumetric gains
& Vertical
the earning assets base contributed to the significant

e. The increase in markup expense on deposits is on account of
gulatory revisions by the Central Bank and volumetric increase achieved
the deposit base. The cost of deposit for the Bank has been strategically
naged by maintaining appropriate CASA base to align it with the earning
x of the Bank. However, the total markup expense has increased by
.27% over the six year period under coverage.
e non-markup income block of the Bank has remained a steady contributor
its bottom line growth. On the other hand, growth in operating
penses has been kept in check through realization of various initiatives
plemented as part of Bank’s cost management drive; hence
picting a moderate average growth of 9.92% over the period under review
spite continuous investment in Banks digital and physical infrastructure
ong with sustained inflationary pressures.
ne of the key strengths of the Bank has been the recovery of its
assified portfolio which is clearly reflected in the reduced / reverse credit
arge booked over the last few years barring the exception of 2020 wherein
agement had proactively booked a general provision

rge of Rs. 4.0 billion in anticipation that the customers
ected by the pandemic might require provisioning once SBP’s relaxations
waivers expire post year end.
is coupled with the subjective provisioning of obligor
counts on a prudent basis resulted in trend reversal for recognition of credit
arge in 2020.
2021, the Bank registered another year of significant recoveries
ainst its classified portfolio. The historic recoveries coupled with the
versal of general provision charge, created in the preceding year, on the
ck of receding systematic risks surrounding the economic recovery led
a net reversal in credit charge for 2021.
CB enjoys one of the highest spreads in the banking industry which are duly
lected in the profitability ratios of the Bank.
2
.
5
2.16%
48.2
2
.
0
1.59%
1.86% 1
1.77% 36.1
1.50%
.
32.1 31.0 5
29.0 1.50% 1
24.0 .
22.5 21.9
21.4 0
0
.
5
0
.
0
2020 2019 2018 2017 2016

PBT PAT RoA
Vertical Analyses
Vertical analysis depicts higher concentration levels of investments
and advances in the asset base of the Bank. The advances base of the
Bank has grown steadily till 2019 with the concentration levels
of advances in the total assets mix improving from 32% in 2016 to
33% in 2019. However, the decline in advances witnessed during 2020
due to lack of credit extension opportunities within the Bank’s
defined risk appetite and the consequent diversion of excess
liquidity towards the investment book has diluted advances
concentration in the total asset mix; hence falling to 26% in 2020. In
2021, the V shaped recovery witnessed in key economic sectors
laid the foundation for a broad based growth in Bank’s advances;
improving concentration of advances in the asset base to 30%.
Advances Concentration Level
40
34% 35%
33% 32%
30%
30
20 26%
C
10 o
0
2021 n
c
e
n
tr
a
ti
o
n
2020 2019 2018 2017 2016
o
The IDRs of the banking industry registered a huge spike in thef earlier years of the time series analysis on account of higher yielding longer term b
However, based on the call that interest rate cycle has bottomed
n out, a gradual shift to shorter term securities with increased focus on cred
Resultantly, the concentration levels of investments declined from
o 52% in 2016 to 49% in 2019.
n
-
m
a
r
k
u
In subsequent years, the deployment of excess liquidity in thepinvestment portfolio initially increased its concentration levels in the asset base to
while the V shaped economic recovery witnessed in 2021 resultedi in a reversion of investments’ concentration level in the total asset base to 53%
Investments Concentration Level n
c
o
m
e
i
n
t
60
h
e
t
o
53%
t
1.00% 52%
a
l
i
n
c
o
58 m
56 e
54 h
a
s
d
e
c
52 Increase 2016
2021
Corresponding to the technological, infrastructural and
operational spend by the Bank; the deposit base has increased over the period of six
years. Improved service quality levels and tailored products have earned the loyalty of our
customers. This can be substantiated by the fact that the CASA base of the bank has
remained over 90% over period under review; in turn reflecting management’s
strategic focus of improving Bank’s deposit base and proactively monitoring its cost
mix.
Markup income growth has registered a steady rise over the last 6 years, barring the
exception of 2021 wherein the earning margins have been adversely impacted by a
reversion in yield curve and have diluted the impact of volumetric growth achieved in
the Bank’s asset base. The contribution from markup income approximates 86% of the total
revenue. Markup expense has increased over the last 6 years based on regulatory revisions
enacted over the period and growth registered in the deposit base.
in the earlier years of the time series analysis on account of higher yielding longer term bonds on offer.
tomed out, a gradual shift to shorter term securities with increased focus on credit was observed.
ned from 52% in 2016 to 49% in 2019.
the investment portfolio initially increased its concentration levels in the asset base to 58% in 2020
1 resulted in a reversion of investments’ concentration level in the total asset base to 53%.
Segment Analysis
A segment is a distinguishable component of the Bank Consumer
that is engaged in providing products or services (business segment) or in providing This segment primarily constitutes consumer financing
products or services within a particular economic environment (geographical segment), individual customers of the Bank. Product suites offered to the
which is subject to risks and rewards that are different from those of other segments. include credit cards, auto loans, housing finance and perso
The Bank's primary format of reporting is based on business segments. (Rupees in Million)
5,000
Retail 4,500
4,000
This includes retail lending and deposits, banking services, cards and branchless banking. 3,500
50,000 2,500
40,000 2,000
1,500
1,000
500
46,766 47,528
4,594 4,420
24,762
22,490
2,825 2,844
0
30.000 T
o
2021
20.000 t
a
l
10,000
0
Treasury
Corporate This
I includes fixed income, equity, foreign exchange,
n
own
c position securities, lendings and borrowings and deri
Total Income Profit before tax hedging
o and market making.
2021 2020 m
e
This comprises of loans, deposits, project financing, trade 25,000

20,000
(Rupees in Million)
financing, investment banking and other banking activities

/ with Bank’s corporate and public sector customers including the
Bank’s overseas operation.
19,499 19,161
14.760 14.402
P
r
o
f
i
t
b
e
f
o
r
e
t
a
x
10,000 (Rupees in Million) 15,000
8,000 10,000
6,000 5,000
0
Total Income Profit before tax

9.007
8.372 7.887
5.657
2021
4.000
2,000
0
International
This comprises of loans, deposits, project financing, trade
Total Income Profit before tax investment banking and other banking activities
2021 2020
/ with Bank’s corporate and public sector customers
including the Bank’s overseas operation.
(Rupees
2.500
2,090
2,004
573 650
2.000
1.500
1.000
500
0
2021 2020
onstitutes consumer financing activities with
Bank. Product suites offered to these customers
oans, housing finance and personal loans.
2020
me, equity, foreign exchange, credit, funding,

ndings and borrowings and derivatives for
ng.
(Rupees in Million)
Profit before tax
2020
deposits, project financing, trade financing,

other banking activities
nd public sector customers
as operation.
(Rupees in Million)
2021 2020
Geographical Segment
The Bank operates in following geographic regions:
Pakistan Middle East

100,000 (Rupees in Million) 1,400 (Rupees in Million)
80,000 1,200
60,000 1,000
40,000 800
20,000 600
400
87.324
82.064
51,328
47,539
1,184
1,113
604
406
0 Profit before tax 200

Total Income 2020 0
2021 Total Income Profit before tax
2021 2020
South Asia
(Rupees in Million)
1.200
1.033
813
304
58
1.000
800
600
400
200
0
2021 2020
Product Revenue Analysis

2021 Rupees in Million
Retail Consumer Corporate

Banking Banking Banking Treasury
Products Products Products Products Others Total
Mark-up / return / interest earned 94.419 5.423 26.284 98.666 103.494
Mark-up / return / interest expensed 55.216 3.278 21.618 88.627 95.561
Net mark-up / interest income 39.204 2.145 4.666 10.039 7.933
Non Mark-Up / Interest Income 6.739 2.449 3.706 4.720 2.460
Total Income 45.942 4.594 8.372 14.760 10.393
Non Mark-Up / Interest Expenses 21.493 1.645 612 386 12.758
Profit Before Provision 24.450 2.949 7.759 14.374 (2.365)
Provisions 1.147 124 (128) (28) (5.937)
Profit before tax 23.303 2.825 7.887 14.402 3.572
(Rupees in Million)
Profit before tax

2020
Rupees in Million
rs Total
328.286
264.299
63.987
20.074
84.061
36.894
47.167
(4.823)
51.989
Statement of Charity and Donation
Statement of charity fund management by MCB Islamic Bank Limited ( Wholly owned subsidiary of MCB Bank Limited)
2021 2020
(Rupees in '000)
Reconciliation of charity fund balance
Opening balance 46.615
Additions during the year
- Received from customers against late payment 7.316
- Dividend purification amount 1.093
- Charity against other Non-Shariah compliant income 265
- Profit on charity saving account 673
9.347
Charity paid during the year (25.500)
Charity reversed during the year (21.639)
Closing balance 8.823
Charity was paid to the following institutions:
The Patients' Bahbood Society for Aga Khan University Hospital 1.000
Al-Khidmat Foundation Pakistan 2.000
Arthritis Care Centre 1.000
Aziz Jehan Begum Trust for the Blind 1.000
Chiniot Anjuman Islamia –
Chiniot Blood Bank and Dialysis Centre –
Family Welfare Society 1.000
Fatimid Foundation –
Indus Hospital 2.000
Infaq Memorial Trust 1.000
Layton Rehmatullah Benevolent Trust –
Mind Organization 500
Pink Ribbon –
Saleem Memorial Trust Hospital 3.500
Saylani Welfare Trust 2.000
Shaukat Khanam Memorial Cancer Hospital and Research Centre 1.000
Sindh Institute of Urology & Transplantation 2.000
The Citizens Foundation 1.000
Jahandad Society for Community Development –
The Lahore Hospital Welfare Society 500
Al - Mustafa Welfare Society –
Frontier Foundation blood transfusion Centre –
The Hunar Foundation 2.000
Alamgir Welfare Trust International 2.000
Institute of Business Administration (Center of Excellence in Islamic Finance) 2.000
Zubaida Medical Center –
Mofad e Amma Chiniot Sheikh Association –
25.500
2021 2020
(Rupees in '000)
In addition to the above charity, detail of donation by the Bank
is given below:
Murshid Hospital & Health Care Centre 100
Saleem Memorial Trust Hospital –
Specialized Healthcare and Medical Education Department,
Government of Punjab - (COVID 19 relief) –
Jahandad Society For Community Development 1.500
Nigahban Welfare Association 5.000
Ambulance donation to Sadiq Public School 1.565
District Administration Lahore - (COVID 19 relief) –
8.165
ubsidiary of MCB Bank Limited)
2021 2020
(Rupees in '000)
57.782
42.477
771
–
2.085
45.333
(56.500)
–
46.615
1.000
2.000
2.000
3.000
1.000
1.000
3.000
3.000
5.000
3.000
4.000
2.000
2.000
6.000
2.000
3.000
3.000
4.000
1.500
2.000
500
500
–
–
–
1.000
1.000
56.500
2021 2020
(Rupees in '000)
–
95.000
9.996
5.000
–
–
2.600
112.596
Market Statistics of MCB Share
Share Prices Free Float Market Capitalisation
MCB Scrip (Rs.) Share % Capital
('000s)
2021 High Low Closing (Mln)
December 31, 2021 166.00 146.00 153.35 394.337 33.28% 11.851
September 30, 2021 169.00 148.10 150.69 395.526 33.38% 11.851
June 30, 2021 175.95 150.00 159.83 396.905 33.49% 11.851
March 31, 2021 202.40 164.00 172.15 403.360 34.04% 11.851
2020
December 31, 2020 186.22 164.12 185.28 401.668 33.89% 11.851
September 30, 2020 183.29 160.33 173.82 402.073 33.93% 11.851
June 30, 2020 166.42 146.13 162.07 402.267 33.94% 11.851
March 31, 2020 224.53 132.89 149.28 401.560 33.89% 11.851
2021 2020
Dividend and Bonus
Mln % Mln
Final cash dividend 5.925 50 17.775
3rd interim dividend 5.333 45 -
2nd interim dividend 5.925 50 -
1st interim dividend 5.333 45 5.925
48
1,800
1,650
40
1,500
1,350
32
1,200
1,050
24
900
750
16
600
450
8 300
150
0
0
MCB Turnover (Mln) Sector Turnover (Mln)
KSE 100 Index

50.000
47.000
43.500
40.000
36.500
33.000
29.500
26.000
KSE 100 Index
Market Capitalisation
Value
(Mln)
181.729
178.577
189.408
204.008
219.568
205.987
192.063
176.906
2020
%
150
-
-
50
Share Price Sensitivity Analysis
Factors that can influence the share price of MCB Bank Limited are given below:
Discount rate / Monetary Policy
Based on different assessment parameters, the State Bank of Pakistan can change the monetary policy rate. Any
volatility in the interest rates might impact revenue and profitability of the Bank.
Minimum Rate of Return on Deposits/Regulatory Risk

Any upward revision in the minimum deposit rate will result in compression in net interest margins earned due to increased cost of depos
negatively impact the earning and correspondingly the share price of the scrip.
Inflation
Inflation is considered as a key determinant for policy rate change. Any uptick in the inflation statistics will have a
on the monetary policy rate. With higher discount rates, the Banks will be able to invest in high yielding investments, thus resulting in
profitability. This, in turn will have a positive impact on the share price.
Political Stability & Law and order situation

Political stability and controlled law & order situation is a pre-requisite for any economic development. This in turn
confidence in the soils of Pakistan, making our corporates a potential investment opportunity. However, any act of terrorism or
can negatively impact the equity market and share prices of traded stocks.
Sensitivity Analysis of Change in Market Capitalization

Share Price as of December 31, 2021 Rs. 153.35
Market Capitalization as of December 31, 2021 Rs. 181,729 Million
Change in Share Price by Change in Market Capitalization
+10% Rs. 18,173 Million
-10% Rs. (18,173) Million
20 220
200
15
180
10 160
140
5
120
0
Dec - 20 Jan - 21 Feb - 21 Mar - 21 Apr - 21 May - 21 Jun - 21 Jul - 21 Aug - 21 Sep - 21 Oct - 21 Nov - 21 Dec - 21
Traded Volume MCB Share Closing Price
Other Information
Forced Sales Value in case of Revaluation of Property, Plant & Equipment
The Bank engages professionally qualified and independent valuers, with sufficient regularity, for carrying out revaluation
of its land and buildings in order to ensure that their net carrying amounts do not differ materially from their fair value.
The latest of such exercises was conducted as at December 31, 2019, wherein an additional revaluation surplus of Rs. 7,290.966 million was recogn
buildings. The total market value and FSV of these land and buildings stood at Rs. 43,552.234 million and Rs. 34,841.787 million respectively.
Particulars of Significant/Material Assets and Immovable Property
MCB has sustained a strategic focus on strengthening its network, through branch expansion plan, in order to improve market coverage
customer touchpoints and widen the outreach of its service offerings; while simultaneously contributing towards the SBP’s objective of e
inclusion in the underbanked and unbanked segments of the society.
The Bank’s network, as at December 31, 2021, extends across more than 1,450 branches and offices. Of these, 311 premises are own
represent a material infrastructural investment of Rs. 44.349 billion towards immoveable properties (87% of total investment in Property and
Dividend Declaration and Future Prospects of Dividend:
MCB remains on forefront of providing highest dividend per share in the financial sector with quarterly payouts. For the year 2021, the
have declared a final cash dividend of Rs. 5.0 per share which is in addition to Rs.
14.0 per share interim dividends already paid to the shareholders; taking the dividend payout ratio for the year to 73%.
Dividend payout is expected for the year 2022 as the Bank manages this from the profitability generated while ensuring that sufficient
available with the institution to meet regulatory requirements. Future prospects on the Bank’s performance have been covered within the “F
section of the Annual Report.
Outstanding & Overdue Payments on account of Taxes, Duties, Levies etc:
The Bank is a regular and timely payer of taxes, duties, levies etc. and there are no outstanding or overdue payments in regards thereof.
Management's Assessment of Sufficiency of Tax
The Bank maintains sufficient provision for taxation as required under the accounting standards and the relevant regulations. C
respect to the direct or indirect taxation have been disclosed in the Note 24 to these financial statements. Based on the comparisons of tax pro
the financial statements for last three years vis-a-vis tax assessments, the management assesses that the provision of taxation mainta
sufficient for its purposes.
Particulars of Loans/Advances and Investments in Foreign Companies or Undertakings
The Bank's overseas branches in Bahrain, UAE and Sri Lanka invest and lend to companies and undertakings operating in their respe
Details are given in note 42 of unconsolidated finance statements. Further the Bank hold 99.94% shareholding in MCB Non-Bank Credit O
Joint Stock Company” Azerbaijan.
Disclosures beyond BCR Criteria:
Over the recent years, there have been significant developments in the corporate reporting domain, particularly in relation to the amoun
the entities’ annual reports, as well as the importance ascribed by users to the information beyond the audited financial statements and the au
thereon.
There has been an evolution in the manner in which entities disseminate and communicate information to their stakeholders as users attac
importance to supplementary information and look for better ways to inform their analysis and confirm understanding of more complex areas
statements.
Considering this emerging necessity, MCB strives to go beyond the realm of essential reporting requirements in order to disclose all relevant inform
the stakeholders in understanding various aspects of the Bank’s operational and financial performance. Following is the list disclosures that h
addition to the BCR criteria:
• President/CEO review
• Key interest bearing Assets and Liabilities
• Group-wise Advances and Deposits
• Quarterly Performance Analysis
• Six Years’ – Non Financial Performance 2016-2021
• Six Years summary of operating expenses
statements.
Considering this emerging necessity, MCB strives to go beyond the realm of essential reporting requirements in order to disclose all relevant inform
the stakeholders in understanding various aspects of the Bank’s operational and financial performance. Following is the list disclosures that h
addition to the BCR criteria:
• President/CEO review
• Key interest bearing Assets and Liabilities
• Group-wise Advances and Deposits
• Quarterly Performance Analysis
• Six Years’ – Non Financial Performance 2016-2021
• Six Years summary of operating expenses
ears SsuixmYmary of markup and non-markup income

• Statement on Internal Controls
• Groups’ Performance Reviews
• Detail of Management Committees & Other Senior Management
• Green Banking
• Staff Compensation/Remuneration Policy
• Statement of Charity & Donations
• Investor Awareness through Jama Punji Initiative by the Securities & Exchange Commission of Pakistan
President's ReviewThe President/CEO's video message on the Bank's business performance and strategy is available at: http
Group Structure
MCB Bank Limited
(Holding Company)
Subsidiaries Associates
Adamjee Insurance
MCB Islamic Bank Limited Company Limited
Holding: 100% Holding: 20%
MCB - Arif Habib Savings Euronet Pakistan (Private)

& Investments Limited Limited
Holding: 51.33% Holding: 30%
MCB Non-Bank Credit Organization

Closed Joint Stock Company
Holding: 99.94%
Financial & Management

Services Pvt. Limited
Holding: 95.90%
of deposits. Such revision can
have a corresponding impact

ulting in increased
in turn reposes investor

orism or political instability
100
as recognized against land and
vely.
overage through increased

ctive of expanding financial
are owned by the Bank and

erty and Equipment).
21, the Board of Directors
fficient capital buffers are

in the “Forward Looking”
ations. Contingencies with

f tax provision recognized in
n maintained had been
ir respective jurisdictions.
Credit Organization “Closed
e amount of details included in

d the auditor’s report
sers attach increasingly greater

ex areas in the financial
nt information that facilitates

s that have been made in
nt information that facilitates
s that have been made in
at: https://www. mcb.com.pk/investor-relations/ceo-message

BCR Criteria Mapping
S. No BCR criteria
1 ORGANIZATIONAL OVERVIEW AND EXTERNAL ENVIRONMENT
1.01 Principal business activities and markets local and international including key brands, products and services.
1.02 Geographical location and address of all business units including sales units and plants.
1.03 Mission, vision, code of conduct, culture, ethics and values.
Ownership, operating structure and relationship with group companies (i.e. subsidiary, associated undertaking
etc.) and number of countries in which the organization operates. Also name and country of origin of the holding
1.04 company/subsidiary company, if such companies are a foreign company.
1.05 Organization chart indicating functional and administrative reporting, presented with legends.
Identification of the key elements of the business model of the company through simple diagram supported by a
clear explanation of the relevance of those elements to the organization. (The key elements of business model are
1.06 Inputs, Business activities, Outputs and Outcomes).
Key quantitative information (Number of persons employed as on the date of financial statements and average
1.07 number of employees during the year, separately disclosing factory employees).
Position of the reporting organization within the value chain showing connection with other businesses in the
upstream and downstream value chain. (This disclosure shall be provided by the companies in service and non-
1.08 service sector organizations through graphical presentation).
Significant factors effecting the external environment and the associated organization’s response (external
environment includes commercial, political, economic, social, technological, environmental and legal
1.09 environment). Also describe the effect of seasonality on business in terms of production and sales.
1.10 Significant changes from prior years (regarding the information disclosed in this section).
1.11 Composition of local versus imported material and sensitivity analysis in narrative form due to foreign currency
fluctuations.
Competitive landscape and market positioning (considering factors such as the threat of new competition and
substitute products or services, the bargaining power of customers and suppliers, relative strengths and
1.12 weaknesses of competitors and customer demand and the intensity of competitive rivalry).
2 STRATEGY AND RESOURCE ALLOCATION

2.01 Short, medium and long term strategic objectives.
2.02 Strategies in place or intended to be implemented to achieve those strategic objectives.
"Resource allocation plans to implement the strategy and financial capital structure. (Resource mean CAPITALS
including financial capital (e.g. liquidity, cash flows, financing arrangements); human capital, manufactured
2.03 capital (e.g. building, equipment,
infrastructure); intellectual capital (e.g. patents, copyrights, software, licenses, knowledge, system, procedures);
social and relationship capital and natural capital)."
The effect of technological change, societal issues such as (population and demographic changes, human rights,
health, poverty, collective values and educational systems), environmental challenges, such as climate change, the
2.04 loss of ecosystems, and resource shortages, on the company strategy and resource allocation.
Specific processes used to make strategic decisions and to establish and monitor the culture of the organization,
2.05 including its attitude to risk and mechanisms for addressing integrity and ethical issues.
Key performance indicators (KPIs) to measure the achievement against strategic objectives including statement as
2.06 to whether the indicators used will continue to be relevant in the future.
2.07 Strategy to overcome liquidity problem and the company's plan to manage its repayment of debts and meet
operational losses.
2.08 Significant plans and decisions such as corporate restructuring, business expansion and discontinuance of
operations etc.
2.09 Significant changes in objectives and strategies from prior years.
3 RISKS AND OPPORTUNITIES
3.01 Key risks and opportunities effecting availability, quality and affordability of CAPITALS in the short, medium
and long term.
3.02 Description of the Risk Management Framework including risk management methodology.
3.03 Sources of risks and opportunities (internal and external).
3.04 The initiatives taken by the company in promoting and enabling innovation.
3.05 Assessment of the ‘likelihood’ that the risk or opportunity will come to fruition and the ‘magnitude’ of its effect if
it does.
Specific steps being taken to mitigate or manage key risks or to create value from key opportunities by identifying
3.06 the associated strategic objectives, strategies, plans, policies, targets and KPIs.
3.07 Board’s efforts for determining the company’s level of risk tolerance by establishing risk management policies.
A statement from the board of directors that they have carried out a robust assessment of the principal risks facing
3.08 the company, including those that would threaten the business model, future performance and solvency or
liquidity.
3.09 Inadequacy in the capital structure and plans to address such inadequacy.
4 GOVERNANCE
Board composition:
a) Leadership structure of those charged with governance.
4.01 b) Name of independent directors indicating justification for their independence.
c) Profile of each director including education, experience and involvement / engagement of in other entities as
CEO, Director, CFO or Trustee etc.
Review Report by the Chairman of the company on the overall performance of the board and effectiveness of the
4.02 role played by the board in achieving the company’s objectives.
A statement of how the board operates, including a high-level statement of which types of decisions are to be
4.03 taken by the board and which are to be delegated to management.
Shariah Advisor Report and Profile of the Shariah Advisor / Members’ of the Shariah Board.
4.04
Annual evaluation of performance, along with description of criteria used for the members of the board and its
4.05 committees, CEO and the Chairman.
Disclosure if the board’s performance evaluation is carried out by an external consultant once in three years.
4.06
4.07 Details of formal orientation courses for directors.

Directors’ Training Program (DTP) attended by directors, female executive and head of department from the
4.08 institutes approved by the SECP and names of those who availed exemptions during the year.
Description of external oversight of various functions like systems audit / internal audit by an external specialist
4.09 and other measures taken to enhance credibility of internal controls and systems.
a) Policy for remuneration to non-executive directors including independent directors.

4.10 b) Policy of retention of board fee by the executive director earned by him against his services as non-executive
director in other companies.
4.11 Policy for security clearance of foreign directors.
4.12 How the organization’s implemented governance practices exceeding legal requirements.
Board’s policy on diversity (including gender), any measurable objectives that it has set for implementing the
4.13 policy, and progress on achieving the objectives.
No. of companies in which the executive director of the reporting organization is serving as non-executive
4.14 director.
a) Names of related parties in Pakistan and outside Pakistan, with whom the company had entered into
transactions or had agreements and / or arrangements in place during the financial year, along with the basis of
relationship describing common directorship and percentage of shareholding.
4.15
4.15 b) Contract or arrangement with the related party other than in the ordinary course of business on an arm’s length
basis, if any along with the justification for entering into such contract or arrangement.
c) Approved policy for related party transactions including policy for disclosure of interest by directors in this
regard.
4.16 Details of board meetings held outside Pakistan during the year.
Disclosure of policy for actual and perceived conflicts of interest relating to members of the board of directors and
4.17 a disclosure that how such a conflict is managed and monitored.
4.18 Investors’ grievance policy.
4.19 Policy for safety records of the company.
4.20 Disclosure of IT Governance Policy.
Disclosure of Whistle blowing policy established to receive, handle complains in a fair and transparent manner
and providing protection to the complainant against victimization, and disclosure of the number of such incidences
4.21 reported to the Audit Committee during the year.
4.22 Human resource management policies including preparation of a succession plan.

4.23 Social and environmental responsibility policy.
4.24 Review by the board of the organization’s business continuity plan or disaster recovery plan.
Disclosure of beneficial (including indirect) ownership and flow chart of group shareholding and relationship as
4.25 holding company, subsidiary company or associated undertaking.
Compliance with the Best Practices of Code of Corporate Governance (No marks in case
4.26 of any non-compliance).
4.27 A brief description about role of the Chairman and the CEO.
4.28 Shares held by Sponsors / Directors / Executives.
Salient features of TOR and attendance in meetings of the board committees (Audit, Human Resource,
4.29 Nomination and Risk management).
Timely Communication
Date of authorization of financial statements by the board of directors: within 40 days ---6 marks
within 60 days ---3 marks
(Entities requiring approval from a Regulator before finalization of their Financial Statements would be provided
4.30 a 20 days relaxation, on providing evidence to the Committee).
Audit Committee Report should describe the work of the committee in discharging its responsibilities. The report
should include:
a) Composition of the committee with at least one member qualified as “financially literate and all members are
non-executive / Independent directors including the Chairman of the Audit Committee.
b) Role of the committee in discharging its responsibilities for the significant issues in relation to the financial
statements, and how these issues were addressed with details where particular attention was paid in this regard.
c) Committee’s overall approach to risk management and internal control, and its processes, outcomes and
disclosure.
d) Role of Internal Audit to risk management and internal control, and approach to Internal Audit to have direct
access to Audit Committee and evaluation of Internal Auditor’s performance.
e) Review of arrangement for staff and management to report to Audit Committee in confidence, concerns, if any,
about actual or potential improprieties in financial and other matters and recommended instituting remedial and
mitigating measures.
f) An explanation as to how it has assessed the effectiveness of the external audit process and the approach taken
4.31
to the appointment or reappointment of the external auditor, and information on the length of tenure of the current
statutory auditor; and if the external auditor provides non-audit services, an explanation as to how auditor’s
objectivity and independence is safeguarded.
g) If Audit Committee recommends external auditors other than the retiring external auditors, before the lapse of
three consecutive years, reasons shall be reported.
h) The Audit Committee’s views whether the Annual Report was fair, balanced and understandable and also
whether it provided the necessary information for shareholders to assess the company’s position and performance,
business model and strategy.
i) Results of the self-evaluation of the Audit Committee carried out of its own performance.
Presence of the chairman of the Audit Committee at the AGM to answer questions on the Audit
4.32 Committee’s activities and matters within the scope of the Audit Committee’s responsibilities.
Where an external search consultancy has been used in the appointment of the Chairman or a non-executive
4.33 director, it should be disclosed if it has any other connection with the company.
Page No.
28-41, 155-167
43, 441-443
8, 217-220
61,115, 444-447
55
133
92
135
141-145
187
139
136
126
127
129-130
130-131
132
128-129
132
132
132
141-146
137-139
141-146
131
142-145
141-146
137-139
142
147
43-53, 167
63
179-180
190-197
178-179
177-178
179
179
182
179
182
180
182
169-170
183, 293-295,445,447
183, 293-295,445,447
167
183-184
184
185
189
186-187
184-185
185-186
186
55, 115
222-223
181-182
444-447
168-169, 171-176
Results Communicated on: February

10, 2022
226-227
187
177-178
S. No BCR criteria
4.34 Chairman’s significant commitments and any changes thereto.
Disclosure about the Government of Pakistan policies related to company’s business/
4.35 sector in Directors’ Report and their impact on the company business and performance.
4.36 Pandemic Recovery Plan by the management and policy statement.
5 PERFORMANCE AND POSITION
Analysis of the financial and non-financial performance using both qualitative and quantitative indicators showing
linkage between:
(a) Past and current performance; and
(b) Performance against targets /budget
(c) Objectives to assess stewardship of management.
The analysis should cover significant deviations from previous year in operating results and the reasons for loss, if
incurred and future prospects of profits.
Note: Analysis of non-financial performance shall be presented for material non-financial KPIs relevant for the
5.01 business and stakeholders around other forms of capitals as mentioned under International Integrated Reporting
Framework <IR>, i.e. human capital, manufactured capital, intellectual capital, social and relationship capital and
natural capital. Inspiration can also be taken from the Specific Standard Disclosures of G4 Guidelines of
the Global Reporting Initiative (GRI) for measurement and reporting on non-financial KPIs.
Analysis of financial statements:

a) Financial Ratios (Refer Annexure ‘I’)
5.02 b) DuPont Analysis
c) Free Cash Flow
d) Economic Value Added (EVA)
Combined analysis both vertical and horizontal of the Balance Sheet and Profit and Loss Account for last 6 years.
5.03
5.04 Summary of Cash Flow Statement for last 6 years.

Graphical presentation of the Balance Sheet, Profit & Loss Account and analysis in 5.02,
5.05 5.03 and 5.04 above.
Explanation of negative change in the performance against prior year including analysis of variation in results
5.06 reported in interim reports with the final accounts, including comments on the results disclosed as per 5.02, 5.03
and 5.04 above.
5.07 Information about defaults in payment of any debts and reasons thereof period.
5.08 Methods and assumptions used in compiling the indicators.
5.09 Cash Flow Statement based on Direct Method (separate Cash Flow for specific funds e.g. Zakat).
5.10 Segmental review of business performance.

Share price sensitivity analysis using key variables (i.e. selling price, raw material cost, interest rate and currency)
5.11 with the consequent impact on the company’s earning.
5.12 History of major events during the year.
Business rationale of major capital expenditure /projects during the year and for those planned for next year.
5.13
Brief description and reasons;

5.14 a) For not declaring dividend despite earning profits and future prospects of dividend.
b) Where any payment on account of taxes, duties, levies etc. is overdue or outstanding.
CEO presentation video on the organization’s website explaining the business overview, performance, strategy
5.15 and outlook. (Please provide reference / web link on company's annual report).
6 OUTLOOK
Forward looking statement in narrative and quantitative form including projections or forecasts about known
trends and uncertainties that could affect the entity’s resources, revenues and operations in the short, medium and
long term.
Also explaining the external environment including political, economic, social, technological, environmental and
6.01 legal environment that is likely to be faced in the short, medium and long term and how it will affect the
organization in terms of its business
performance, strategic objectives and availability, quality and affordability of capitals.
S. No BCR criteria Page No.
Explanation as to how the performance of the entity meets the forward looking disclosures made in the previous
6.02 year.
Status of the projects in progress and were disclosed in the forward looking statement in the previous year.
6.03
6.04 Sources of information and assumptions used for projections / forecasts in the forward looking statement and
assistance taken by any external consultant.
6.05 How the organization is currently equipped in responding to the critical challenges and uncertainties that are likely
to arise.
7 STAKEHOLDERS RELATIONSHIP AND ENGAGEMENT
7.01 How the company has identified its stakeholders.
Stakeholders’ engagement process and the frequency of such engagements during the year. Explanation on how
these relationships are likely to affect the performance and value of the entity, and how those relationships are
managed. These engagements may be with:
a) Institutional investors;
b) Customers & suppliers;
c) Banks and other lenders;
7.02 d) Media;
e) Regulators;
f) Local committees and
g) Analysts.
Steps taken by the management to encourage the minority shareholders to attend the general meetings.
7.03
7.04 Investors' Relations section on the corporate website.

7.05 Issues raised in the last AGM, decisions taken and their implementation status.
Statement of value added and its distribution with graphical presentation:
a) Employees as remuneration
b) Government as taxes (separately direct and indirect)
c) Shareholders as dividends
7.06 d) Providers of financial capital as financial charges
e) Society as donation; and
f) Retained within the business
Stakeholders engagement policy and steps board has taken to solicit and understand the views of stakeholders
7.07 through corporate briefing sessions and disclosure of brief summary of Analyst briefing conducted during the
year.
7.08 Highlights about redressal of investors' complaints.

8 SPECIFIC DISCLOSURES OF THE FINANCIAL STATEMENTS
8.01 For Specific Disclosures of the Financial Statements please refer Annexure ‘II’.
8.02 Industry specific additional disclosures Banking Company - Annexure ‘IV’
9 SUSTAINABILITY AND CORPORATE SOCIAL RESPONSIBILITY
Highlights of the entity's performance, policies, initiatives and plans in place relating to the various aspects of
sustainability and corporate social responsibility (including environment related obligation applicable on the
9.01 company and initiatives taken to fulfil during the year and company’s responsibility towards the staff, their
health & safety).
9.02 Certifications acquired and international standards adopted for best sustainability and CSR practices.
10 BUSINESS MODEL
Describe the business model including inputs, business activities, outputs and outcomes in accordance with the
10.1 guidance as set out under section 4C of the International Integrated Reporting Framework <IR>.
11 STRIVING FOR EXCELLENCE IN CORPORATE REPORTING

11.01 Statement by management of unreserved compliance of International Financial Reporting Standards (IFRS) issued
by the International Accounting Standards Board (IASB).
Adoption of International Integrated Reporting Framework <IR> by fully applying the ‘Fundamental Concepts’
11.02 and ‘Guiding Principles’ of <IR> into their corporate reporting in addition to the ‘Content Elements’
(disclosures) of <IR>, as covered in this criteria.
11.03 Disclosures beyond BCR criteria (Note: The participating organization to send the list of additional disclosures to
BCR Committee).
Page No.
187
148
188
78-81
90.91
99
100
104
105-108
100
76,96,97,98
79,90-96
146
127
101
109-110
113
124-125
104
114
115
70-72
73-75
73
75
75
212
212-213
214
214
215
216
212-213
184
Refer below
Refer below
198-208
209
133
186
4
114-115
S. No BCR criteria Page No.
12 ASSESSMENT BASED ON QUALITATIVE FACTORS
12.01 Please refer Annexure ‘VI’
13 OTHERS
13.01 BCR criteria cross referred with page numbers of the annual report.
13.02 Brief about contents, scope and boundaries of the annual report.
13.03 SWOT analysis.
ANNEXURE ‘I’ - FINANCIAL RATIOS - Financial Sector Page No.
Profitability Ratios
a) Profit before tax ratio

b) Gross Yield on Earning Assets
c) Gross Spread ratio
d) Cost/Income ratio
e) Return on Equity
f) Return on Capital employed
g) Shareholders' Funds
h) Return on Shareholders' Funds
Liquidity Ratios
a) Advances to deposits ratio

b) Current ratio
c) Quick / Acid test ratio
d) Cash to Current Liabilities
e) Net interest income as a percentage of working funds /Operating cost - Efficiency ratio
f) Cash Reserve Ratio / Liquid Asset ratio
g) Gross Non-Performing assets to gross advances
h) Non-Performing loans to Total Loans
Investment /Market Ratios
a) Earnings per share (EPS) and diluted EPS

b) Price Earnings ratio
c) Price to Book ratio
d) Dividend Yield ratio
e) Dividend Payout ratio / Dividend Cover Ratio
f) Cash Dividend per share / Stock Dividend per share
g) Market value per share at the end of the year and high/low during the year
Breakup value per share
i. Without Surplus on Revaluation of property, plant and equipment
ii. With Surplus on Revaluation of property plant and equipment including the effect of all Investments
h)
iii. Including Investment in Related Party at fair /market value and also with Surplus on Revaluation of property
plant and equipment.
Capital Structure
a) Capital Adequacy ratio

b) Earning assets to total assets ratio
c) Weighted Average cost of deposit
d) Net assets per share
e) Debt to Equity ratio (as per book and as per market value)
Non-Financial Ratios
a) Staff turnover ratio

Various Sections
116-123
5
134
o.
90-91
90-91
90-91
90-91
90-91
90-91
90-91
90-91
90-91
90-91
90-91
90-91
90-91
90-91
90-91
90-91
90-91
90-91
90-91
90-91
90-91
90-91
90-91
90-91
90-91
90-91
90-91
90-91
90-91
90-91
90-91
90-91
92
ANNEXURE ‘I’ - FINANCIAL RATIOS - FINANCIAL SECTOR Page No.
b) Customer Satisfaction Index
c) Employee Productivity Rate
ANNEXURE ‘II’ – SPECIFIC DISCLOSURES OF THE FINANCIAL STATEMENTS Page No.
1 Fair value of Property, Plant and Equipment.
2 Segment analysis of segment revenue, segment results and profit before tax.
3 Reconciliation of weighted average number of shares for calculating EPS and diluted EPS.
Particulars of significant/ material assets and immovable property including location and area of land.
4
5 Disclosure of product wise data mentioning, product revenue, profit etc.

6 Disclosure of discounts on revenue.
7 Sector wise analysis of deposits and advances.
8 Complete set of financial statements (Balance sheet, Income statement & Cash flow) for
Islamic banking operations.
9 Status for adoption of Islamic Financial Accounting Standards (IFAS) issued by the ICAP.
10 Summary of significant transactions and events that have affected the company‘s financial position and
performance during the year.
11 Forced sale value in case of revaluation of Property, Plant and Equipment or investment property.
12 Distribution of shareholders (Number of shares as well as category wise, e.g. Promoter, Directors/Executives or
close family member of Directors/Executives etc.).
13 Particulars of major foreign shareholders, other than natural person, holding more than 5% of paid up capital in
the company in Pattern of Shareholding.
14 Particulars where company has given loans or advances or has made investments in foreign companies or
undertakings.
Accounts Receivable in respect of Export Sales - Name of company or undertaking in case of related party and in
15 case of default brief description of any legal action taken against the defaulting parties.
16 Treasury shares in respect of issued share capital of a company.

17 In describing legal proceedings, under any court, agency or government authority, whether local or foreign,
include name of the court, agency or authority in which the proceedings are pending, the date instituted, the
principal parties thereto, a description of the factual basis of the proceeding and the relief sought.
Management assessment of sufficiency of tax provision made in the company’s financial statements shall be
stated along with comparisons of tax provision as per accounts vis a vis tax assessment for last three years.
18
financial statements shall be stated along with comparisons of tax provision as per
accounts vis a vis tax assessment for last three years.
19 Income tax reconciliation as required by IFRS and applicable tax regime for the year.
In respect of loans and advances, other than those to the suppliers of goods or services, the name of the borrower
20 and terms of repayment if the loan or advance exceeds rupees one million, together with the collateral security, if
any.
Disclosure about Human Resource Accounting (includes the disclosure of process of identifying and measuring
21 the cost incurred by the company to recruit, select, hire, train, develop, allocate, conserve, reward and utilize
human assets).
In financial statements issued after initial or secondary public offering(s) of securities or issuance of debt
instrument(s) implementation of plans as disclosed in the prospectus/ offering document with regards to utilization
22 of proceeds raised till full implementation of such plans.
Where any property or asset acquired with the funds of the company and is not held in the name of the company
or is not in the possession and control of the company, this fact along with reasons for the property or asset not
23 being in the name of or possession or control of the company shall be stated; and the description and value of the
property or asset, the person in whose name and possession or control it is held shall be disclosed.
24 Standards, amendments and interpretations adopted during the current year along with their impact on the
company's financial statements.
25 Standards, amendments and interpretations, not yet effective and not adopted along with their impact on the
company's financial statements.
No.
92
92
e No.
114.261
291.292
279
261
110
Not Applicable
84
429-440
239
70-75
114
444-447
444-447
251-257
Not Applicable
Not Applicable
Not Applicable
114
279
Not Applicable
131
Not Applicable
261.262
239
239
ANNEXURE ‘IV’ - SPECIFIC DISCLOSURES FOR BANKING COMPANY Page No.
a Disclosure of Ratings given by various rating agencies for the Bank and for its Instruments issued by /of Bank.
For e.g. Tier I and Tier II.
b b. Details of Advances portfolio Classification wise as per the direction issued by SBP.
c. Disclosure for Non-Performing Assets (NPA):
i. Movements in NPA
ii. Sector-wise breakup of NPA
c iii. Movement of Provisions made against NPA
iv. Details of accounts restructured as per regulatory guidelines
d Maturity Pattern of Key Assets and Liabilities.

e Classification and valuation of investments as per SBP guidelines/ IAS/ IFRSs.
f Details of credit concentration / sector-wise exposure.
g Disclosures under regulatory requirements (for e.g. prudential regulations).
h Details of Non statutory investment portfolio.

i Disclosures for derivative investments.
j Bank's Network : List of Bank’s Branches.
MCB Calendar of Major Events

February 10, 2021
Annual Results - 2020

issued
March 27, 2021
73rd Annual General
Meeting held
April 20, 2021
1st Quarter Results
issued
August 11, 2021
2nd Quarter Results
issued
October 27, 2021
3rd Quarter Results
issued
February 10, 2022
Annual Results issued
March 29, 2022

74th Annual General
Meeting scheduled
124
No.
60
258-260
83
98
251-257
300
Annexed Financial Statements
86
274
441-443
ary 10, 2021
il 20, 2021
ober 27, 2021
ch 29, 2022
g scheduled
Historical Major Events
Incorporation Nationalisation Investment in
First Women Bank
1947 1974 1989

Incorporation of MCB Trade Investment in Adamjee Incorporation of 1991
Services Limited Insurance Company MNET Services
Limited (Private) Limited
1992
Incorporation of MCB 2005 2004 2001

Asset Management
Company Limited
2005
Change of name from Issuance and Strategic Incorporation
Muslim Commercial Listing of Global acquisition by of MCB Leasing Closed Joint Stock Company
Bank Limited Depository Receipts Maybank
on London Stock
Exchange
2005
2006 2008 2009
2011
Merger of Merger of NIB Incorporation of
MNET Bank with and into MCB Islamic Banking
Services (Private) Limited MCB Bank Limited Limited - a subsidiary
with and into MCB Bank company
Limited
2011
Disposal of MCB 2019 2017 2014
Financial Services Limited
2020
Strategic & Resource Allocation
Execution of a well-defined strategy has been the key pillar for our growth momentum over the last many years. Our strategy broadly co
to achieve in the short and long run duly focusing on the challenges posed by the macroeconomic imbalances;
Strategic Objectives
Short, medium and long term objectives of the Bank to meet its mission statements are as follows:
Short term • Increase focus on digitalization and automation of processes to enhance efficiency,
reduce cost and improve customer satisfaction and improve risk/ compliance standards;
• To ensure quality asset retention with measures to constantly decrease the NPLs base of the Bank;
• Consistent improvement in service quality standards;
• To increase the current account concentration levels of the institution by capitalizing on the opportunities presented.
Medium term • To be a top stakeholder value generator in Pakistan’s banking sector while remaining a socio- environmentally conscious citi
• The Bank aims to increase its share in the domestic deposit pie;
• To maintain a strong capital base
Long term • Delivering remarkable returns to stakeholders, sustainable performance exceeding market and shareholder expectations;
• Providing value added services through operational expansion, geography and upgraded system;
• Building a corporate culture of equality, trust and team spirit as we remain dedicated to being a socially responsible organization
For strategy formulation, the Bank follows a structured approach to map itself in the industry / operating environment through detailed competitiv
assessment, peer group analysis and macro-economic & thematic reviews; in turn laying the foundation for its future road map.
Position
assessment | Peer Growth areas
Group Review ‘scoped’ Business model
SWOT | review
Macro-economic & Strategic Thrusts
Thematic review identified
Deploy
Strategy Execution
Plan
Continuous
Implementation
monitoring
and ‘compass
correction’ against
milestones
Strategies in place
From customer service standpoint, special focus remains on improving our service quality and service standards levels. We will integrate
across all the channels and outlets in the network to provide a uniform customer experience.
We will endeavor to meet expectations of our valued customer base. Another important aspect remains credit quality and our refined ris
will thereby give value to our customers across the entire spectrum of retail, corporate and SME while improving our asset qualit
Under the Corporate plan, we also intend to expand our geographical boundaries by being open to potential new
business models, innovative processes and delivery channels, enabling provision of 24x7 customer services.
Today, technology is a major component of the competitive edge of any bank. With millennial being an increasing percentage
base, we have to cater to their expectations and it requires leveraging cutting edge technology. The other side of the coin howeve
brings risks with it. We will go the extra mile, to ensure our assets and those of our customers are secure and sensitive information is pro
To ensure efficient and effective operation of the Bank we need systems and processes that operate seamlessly. This is
another focus area where we will concentrate on identifying pain points and gaps, and make the necessary modifications.
To safeguard the financial stability and the reputation of the Bank, good governance and ethical conduct are imperative. Whil
high standards in these areas, we have set our benchmarks as the best in class practices in the country. We will renew and re-energize our
sustainability by ensuring that we continue to maintain a judicious balance between economic, social and environmental objectives.
The end result of all the above will be the enhancement of our brand. The brand is a mirror of our image in the eyes of our customers, bo
millennials, and the general public. Through the strategies spelt out in our corporate plan we will forge ahead, building our brand, inc
assets and profitability, while delivering increasing value to all our stakeholders.
Method and Assumptions in Compiling Indicators

The Bank identifies its indicators which effectively reflect Bank’s performance.
The bank analyses its market positioning, competitors and general market conditions while compiling its indicators. The Bank analyses
advances, capital and risk adequacy ratios, gross profit after tax and EPS on a regular basis to gauge its performance. These
indicators of Bank’s financial performance and profitability.
Market price is a measure of Bank’s perception in the market. The difference between book value and market value
shows investor’s confidence on the script.
The Bank manages its dividend payout in line with the profitability generated during the year while ensuring that sufficient cap
available with the institution to meet regulatory requirements. Dividend is the amount allocated out of profit for paying cash to the sha
dividend payment is an indicator of how well earnings support the dividends. The Bank takes its decisions of cash or stock dividend
conditions, share price and governing laws and regulations.
Comparing cash flow from operating activities with profit before tax can give insights into how a Bank generates funds
and manage the cash flows. The bank regularly analyses its cash flows and strives to keep it on positive side.
Change in Indicators and Performance Measures
Key performance indicators (KPIs) provide understanding of the Bank’s performance in key areas. These indicators are used as a gauge t
standing of the Bank and likely path the Bank would follow.
MCB has identified KPIs that are critical to its business. While identifying KPIs, the Bank analyzed various indicators, their
interpretations and accordingly the extent to which they may correctly and clearly communicate the Bank’s performance.
Change in important indicators is discussed in performance and position section of the Annual Report.
Privatisation
1991
1992
Incorporation
of MCB Finanical Services
Limited
Closed Joint Stock Company
Investment in
Euronet Pakistan (Private)
Limited
2011
Amalgamation of MCB
Asset Management
Company with Arif
2011
Habib
Investment
Limited
125
ears. Our strategy broadly covers what we want
efficiency,
ed.
environmentally conscious citizen;
shareholder expectations;
ble organization
t through detailed competitive position

ts future road map.
dards levels. We will integrate service standards

dit quality and our refined risk appetite. We
while improving our asset quality.
g open to potential new

s.
eing an increasing percentage of our customer
e other side of the coin however, is that technology
nd sensitive information is protected.
rate seamlessly. This is

necessary modifications.
conduct are imperative. While we already have
will renew and re-energize our focus on
environmental objectives.
n the eyes of our customers, both legacy and

head, building our brand, increasing our
ndicators. The Bank analyses deposits,

auge its performance. These are the basic
ket value
e ensuring that sufficient capital buffers are

fit for paying cash to the shareholders. The
isions of cash or stock dividend based on market
Bank generates funds

positive side.
ndicators are used as a gauge to analyze current
d various indicators, their

s performance.
Key performance indicators to measure the objectives are as follows:
Strategic objectives Strategies for Meeting Objectives KPI
Increase focus on digitalization and Centralization and monitoring of operating expenses to restrain Effective and
automation of process them within conventional limits. efficient cost
to enhance efficiency, reduce cost Work on automation of existing manual systems. Gradual control while
and improve customer satisfaction and investment on unified digital platform for an overwhelming investing for
improve risk and compliance standards. customer experience. growth
Manage Information security risks through development,

documentation and implementation of policies, standards,
procedures and guidelines that ensure confidentiality and
integrity of sensitive information.
To ensure quality asset retention with Increased focus on quality asset growth while maintaining low Asset Quality
measures to constantly decrease the infection ratio by continuously striving to manage risk through
NPLs base of the Bank. an augmented framework of sound risk principles; to be
reinforced by optimum organizational structures, robust risk
assessment models and effective monitoring systems in an
automated environment.
Focus on recoveries of existing NPL stock.

To maintain a strong capital base Healthy equity leading to maintain strong capital adequacy Capital ratios
ratios.
The Bank aims to increase its share in Expansion/Increase in deposit base through new products and Deposit generation
the domestic deposit pie; and markets thereby increasing customer base beyond the prevalent growth and mix
To increase the current account organic growth.
concentration levels of the institution by Increased focus on current account growth.
capitalizing on the opportunities
presented
Delivering remarkable returns to Higher profitability to pay higher returns to Shareholder return
stakeholders, sustainable performance shareholders.
exceeding market and shareholder
expectations.
Providing value added services through Lead market position through focused initiatives encompassing Improved services;
operational expansion, geography and launch of innovative and customer centric solutions, penetration broad-based
upgraded system. of emerging markets, adoption of digital banking avenues and increase in
instilling effective cost management techniques. customer
Rationalize & optimize usage of existing branch network satisfaction across
and network strengthening through branch expansion plan. markets and
segments
Service portfolio enhancement of all digital

products / channels i.e. call center, internet banking, mobile
banking, mobile wallet, SMS alerts, E-statement, ATMs and
Debit Cards to increase non markup income.
Integrate service standards across all the channels and outlets in
the network to provide a uniform customer experience.
Future relevance
The KPI will

remain relevant in
the future.
The KPI will

remain relevant in
the future.
The KPI will

remain relevant in
the future.
The KPI will

remain relevant in
the future.
Shareholder return
The KPI will

remain relevant in
the future.
Strategic objectives Strategies for Meeting Objectives KPI
Building a corporate culture of equality, Improve governance structure and update existing policies as Corporate culture
trust and team spirit as we remain per industry dynamics.
dedicated to being a socially responsible Maintain employee engagement levels and provide
organization. opportunities for internal mobility to enhance professional and
personal growth
Generate economic activity through sustainable

focused initiatives.
To be a top stakeholder value generator Generate higher profitability to pay higher returns Corporate social
in Pakistan’s banking sector while to the shareholders. responsibility
remaining a socio- environmentally Introduce socio environmental activities such as green banking
conscious citizen. to improve the brand name.
Resource Allocation Plan

The inputs to the Bank’s business processes are capitals, or stores of value, in various forms. Of these capitals, financial, ma
intellectual capitals are internal capitals owned by the Bank. The others, human, social, relationship and natural are external to the Bank.
Bank has resources to meet its strategic objectives. The Bank utilizes and enhances its resources to differentiate itself and maximize valu
stakeholders in the long run. A transitory resource allocation plan is as follows:
Nature of capital Resource allocation plan

Human Capital • Redeploy human capital to enhance productivity through segmentation;
An agile and engaged workforce • Undertake human capital capacity enhancement and capability building by
enables MCB to be nimble and react focusing on trainings, talent management and talent retention;
quickly to opportunities • Onboard versatile human resource that can multi task easily.
Manufactured Capital • Branch layout improvement and widening of branch and ATM network;
MCB’s best-in-class technology and • Re-align the business model through segmentation to increase the customer base.
physical infrastructure allow it to be
resilient.
Financial Capital • Investment on process automation and IT network improvements;

MCB’s strong capital base and • Invest on infrastructure including buildings and equipment;
diversified funding sources allow it • Invest in good quality asset base with high yield.
to support customers through good
and bad times, and enables it
to provide banking solutions
competitively.
Natural Capital • Introduce green building concept to branch network by introducing paperless environment and
MCB impacts the natural install solar energy equipment in branches;
environment directly in its • Increase financing to renewable energy projects.
operations, as well as indirectly • Solar project deployments across network for energy generation;
through its customers and
suppliers.
Intellectual Capital • Reengineering of processes to capture synergies and customer satisfaction;

MCB’s key intellectual capital • Improvement in governance culture by utilizing over 74 years of institutionalized knowledge;
pertains to how it continuously re- • Introduce new products as per customer needs.
engineers its business
processes and invests in
technological transformation to lead
into the digital age.
Future relevance
The KPI will

remain relevant in
the future.
The KPI will

remain relevant in
the future.
s forms. Of these capitals, financial, manufactured and

nship and natural are external to the Bank.
es to differentiate itself and maximize value creation for its
ion;
ability building by
work;
ustomer base.
paperless environment and
faction;
stitutionalized knowledge;
Nature of capital Resource allocation plan
Social and Relationship Capital • Invest in a series of initiatives that enhance collaboration and ongoing dialogue with our customers;
At MCB, customers are at the • Enhance brand image through public awareness campaigns.
heart of business; enabling it to
differentiate itself in the industry
while also building lasting
relationships to deepen wallet
share.
The Bank also recognizes that not
all returns can monetized and its
license to operate comes from
the society at large
Key Factors Impacting Strategy and Resource Allocation

Factor Effect on Bank’s Strategy & Resource Allocation
Technological Innovation and Technological innovation is having a profound impact

Evolving Consumer Behavior on customer needs and habits, Bank’s business model,
and the lives of its employees.
New market players, such as startups and FinTechs, are
disrupting the status quo and contributing to a reshaped
competitive landscape that is generating challenges
amidst newer ways of collaboration and innovation.
Societal Outlook An ever growing impact of corporates on the society at

large is creating a moral obligation on businesses to play
an active role in adeptly responding to a myriad
of social issues when conducting its operations;
including society’s expectations on ethics, compliance,
respect for human rights, diversity, etc.
s that enhance collaboration and ongoing dialogue with our customers;
h public awareness campaigns.
Bank Response to Align its Strategy & Resource

allocation
At MCB, the focus on adopting emerging technologies
by continuous upgrade of its infrastructure and
leveraging market research through intelligent analytics
is a powerful driver of innovation and prevents
the Bank from losing its market relevance.
The Bank also supports its employees so they can
acquire new skills or fine tune existing ones thus
continuing to contribute to the Bank’s digital and agile
mission.
Refer to the Group Review section of the Annual
report and below section on Initiative towards promoting
and enabling innovation for further details
MCB prides itself in conducting its affairs in a fair and

responsible manner. This includes:
• advancing Government’s financial
inclusion agenda;
• taking a proactive stance to protect our customers’
information and preventing financial crime;
• developing innovative and best-fit financing and
investment solutions for customers that enable them in
turn to make positive impact choices;
• providing an inclusive work environment for its
employees;
• responsibly & actively contributing to
Governments key pandemic responses and
digitalization initiatives ; and
• ensuring seamless and uninterrupted provision of
essential banking services to the general public at large.
Refer to Group Review and Sustainability &
Corporate Social Responsibility section of the Annual
report for further details.
Factor Effect on Bank’s Strategy & Resource Allocation
Climate and Ecosystem Climate change poses an increasing threat to mankind

Changes and the global economy.
Transitioning to a low-carbon economy may entail
extensive policy, legal, technology and market changes.
Physical risks such
as frequent or severe weather events may also give rise
to credit, operational and reputational risks
Initiative towards Promoting and Enabling Innovation

MCB’s “Mission Statement” embraces and encapsulates its commitment for providing innovative and efficient financial solutio
nurture long term relationships with its wide range of customers. The policy focus has in turn laid the foundation for a corporate culture t
encourages organizational growth through promoting, enabling and driving innovation across the tiers.
At MCB, we continue to emphasize on both strategy about exploring innovative ways to stay connected with our customers an
robust alternative online channels to accelerate rollout of digital engagement initiatives for driving digital user activation, transactions, di
and digital sales enablement; hence remaining agile and adaptive to the new “normal” amidst the evolving operating scenario and reshapi
behaviors.
The Bank also continues to drive adoption and pervasiveness of core systems with a focus on improving frontline capability.
especially across back-office operations, remains a critical component to improve our end-to-end capabilities, while also enabli
green banking objectives in lower paper consumption.
Human Resource Accounting Policy

At MCB Bank, Human Resource Accounting (HRA) encapsulates accounting of the bank’s management and employees as ‘human ass
provides future benefits, rather than them being considered as an expense which is what comprises a typical approach under trad
resource accounting.
The Bank has progressed forward to ensure that the people aspect of its business focuses on improving the standards and proficiency of
retaining talent for succession planning and expansion into new domains; thus generating greater contribution and improvi
implementation of higher investment, efficiency and resource productivity initiatives. In fact, HRA has allowed the Bank to keep
it is making in its human resources, and the specific returns it is generating from these investments, thus fostering a virtuous cy
returns.
The Bank leverages its HRA strategically to drive positive change in its human resources, which comprises the most vital assets of the ba
through insights from its HRA, the Bank has been able to strategically reposition its human resources to face the rapid changes in th
financial services sector, especially now when digital banking is gaining fast credence. At the Bank, we have not only ensured that
capabilities of our human resources are aligned to the times, but have also made sure that the bank always remains in a position of deep s
people resources, notwithstanding the challenges prevalent in the external environment.
Refer to the “Sustainability & Corporate Social Responsibility”, “Group Review” and “Analyses of Non-Financial
Performance” section of the annual report.
Strategy to Maintain and Monitor the Culture of Organization

Fostering a culture supportive of MCB’s growth journey is a critical component of its transformation process. As the Bank strives towards becomin
centric, innovative and an employee friendly Bank for the future, its strategic plan paves the road map while laying the foundation for guiding value
more results oriented, open, caring and inclusive culture.
Key Steps for Addressing Integrity and Ethical Issues
• Ensuring that all members of the organization understand that they have a responsibility to promote integrity.
• Conducting systemic integrity risk assessments on an ongoing basis.
• Facilitating open communication about integrity-related issues; recognizing and rewarding ethical conduct.
• Providing a mechanism for members to consult about integrity related issues.
• Ensuring that performance management systems are in alignment with the organization’s ethical goals.
• Providing ongoing training for integrity-related practices.
Strategy to overcome liquidity problem

Bank carries a substantial portfolio of marketable securities that can be easily traded and realized in known amounts of cash in the event of liquidity
Liquidity Coverage Ratio and Net Stable Funding Ratio are well over and above the regulatory requirement.
The Bank maintains strong liquidity position which is regularly monitored by the respective units. The liquidity ratios indicate the strong liquidity p
institution. Liquidity position of the bank is discussed in the risk management section of the financial statements.
Significant Plans and Decisions

There are no significant events to report for the year.
Significant changes in objectives and strategies

MCB Bank objectives & strategies are well planned and are persistently implemented. No significant change occurred
during the year to affect the objective and business strategies.
Bank Response to Align its Strategy & Resource
allocation
MCB has incorporated responsible financing in its
lending practices by capitalizing on its extensive
environmental risk management framework. The Bank
endeavors to support customers’ transition towards more
sustainable lowcarbon business models
and improve customers’ access to ESG
investments.
Refer to Group Review and Sustainability &
Corporate Social Responsibility section of the Annual
report for further details.
nabling Innovation
ulates its commitment for providing innovative and efficient financial solutions to create and
stomers. The policy focus has in turn laid the foundation for a corporate culture that fosters and
nabling and driving innovation across the tiers.
y about exploring innovative ways to stay connected with our customers and investing into
f digital engagement initiatives for driving digital user activation, transactions, digital sales acquisition
adaptive to the new “normal” amidst the evolving operating scenario and reshaping of customer
vasiveness of core systems with a focus on improving frontline capability. Automation,

critical component to improve our end-to-end capabilities, while also enabling us to meet our
y
capsulates accounting of the bank’s management and employees as ‘human assets’ or ‘capital’ that
nsidered as an expense which is what comprises a typical approach under traditional human
ple aspect of its business focuses on improving the standards and proficiency of employee skills and
sion into new domains; thus generating greater contribution and improving returns through
and resource productivity initiatives. In fact, HRA has allowed the Bank to keep track of investments
returns it is generating from these investments, thus fostering a virtuous cycle of growth and
ve change in its human resources, which comprises the most vital assets of the bank. Over time,
o strategically reposition its human resources to face the rapid changes in the banking and
al banking is gaining fast credence. At the Bank, we have not only ensured that the skills and
mes, but have also made sure that the bank always remains in a position of deep strength through its
ent in the external environment.
Responsibility”, “Group Review” and “Analyses of Non-Financial
re of Organization
al component of its transformation process. As the Bank strives towards becoming a more customer
ts strategic plan paves the road map while laying the foundation for guiding values that shall support a
hical Issues
they have a responsibility to promote integrity.
basis.
; recognizing and rewarding ethical conduct.
related issues.
ent with the organization’s ethical goals.
n be easily traded and realized in known amounts of cash in the event of liquidity stress. Bank’s
ver and above the regulatory requirement.
onitored by the respective units. The liquidity ratios indicate the strong liquidity position of the
management section of the financial statements.
egies
persistently implemented. No significant change occurred
Business Model
Financial - Share Holders Equity: Rs. 160 billion Natural
- Customer Deposits: Rs. 1,412 billion
Capital - Strong CET1 Capital Ratio: 15.08%; well above Minimum Regulatory Capital
Human Capital Requirements. Intellectual Capital
Manufactured Capital - A Total of 13,849 Employees that are: Social and
- Skilled, Experienced and Highly Competent
- Client Driven & People Centric Relationship Capital
- Increasingly Innovative & Competitive
- Strong in Compliance & Governance
- Reward Structures Linked to Performance.
- Training and Development Programs.
- Wide Outreach: 1,451 Branches
- Digital Touchpoints: 1,454 ATMs, POS, CDM, Call Centers etc.
- Strong Core Banking Systems
- Market Leading Digital Products, Services and Client Value Propositions
- Other Assets
Improving Customer
Governance Culture by Capitalizing Centric Focus for an Enriched and
on Institutionalized Bespoke Experience.
Knowledge
Undertaking Increased Focus on

Human Capital Capacity Enhancement and Digitization and Process Automation
Capability Building through Trainings, Talent Providing Value Added Services through Operational & G
Management and Talent Retention Analytics and System
Generating NIM on Earning Assets and Augmenting Upgrades.
Non Markup Avenues for Maximizing Stakeholder
Value.
BUSINESS
ACTIVITIES
Ensuring Building
Quality Asset Retention a Corporate Culture of Equality, Trust and Team Spirit to Remain a Socially
through Robust Risk Management Responsible Citizen
and Improving Deposit
Mobilization
Financial - Profit after Tax: Rs. 31 billion Intellectual

- Earning per share: 26.00 / Share
Capital - Dividend per share: Rs. 19 / Share Capital
Human Capital - Dividend Payout ratio: 73.08% Social and
Natural Capital - Return on Equity (p.a): 19.11% Relationship Capital
- Return on Assets (p.a): 1.65%
- Female Staff Ratio: 16.9%
- New Recruitments: 2,075 Employees
- Investment in Trainings: Rs. 35.41 Million
- No. of Training Participants: 39,030
- No. of Promotions: 2,248 Employees
- Improved Energy Mix and Conservation through reduction in Non-Renewable
energy consumption
- World Wide Fund for Nature "Green Office Certification" - Head Office
Building
- Green Banking Initiatives.
- Financing of Renewable Energy Projects.
- Renewable and Non-Renewable Resources used by the Bank i.e. Electricity, Fuel, Solar Powered
installations (10 Branches) etc.
- Robust Heritage and a Strong Brand Image
- Strong Management Structure and Experienced Leadership Team
- Systems, Processes and Procedures established by the Bank
- No. of Accounts: 8.372 Million
- No. of Customers: 7 Million+
- Banking Agents, Trade Partners and Merchants across a Diffused Geographical Presence
- Robust relationships Created with all Stakeholders.
r
Focus for an Enriched and
Experience.
Increased Focus on
Digitization and Process Automation
Providing Value Added Services through Operational & Geographical Expansion, Data
Analytics and System
Upgrades.
ate Culture of Equality, Trust and Team Spirit to Remain a Socially

ble Citizen
- Digital Initiatves for all Customers :MCB Live Internet & Mobile Banking App Launched in
December with more than 100,000+ customers onboarded.
- Responsibly & Actively Contributed to Governments Key Pandemic Responses for Credit
Extension, Spreading Digital Agenda and Provision of Essential Banking Services to the General Public.
- Adjudged as the “Best Bank in Pakistan” by the globally coveted Finance Asia’s Country Awards.
- Contribution to National Exchequer: Rs. 21.5 Billion.
- Continued Socio Economic Spending
- Deposit Mobilization: 9% Growth
- Long Term Entity Credit Rating: AAA
- Short Term Entity Credit Rating: A1+
- Total Complaints Resolved: 262,778
- Complaint Resolution Rate: 99.84%
- Low Infection Ratio: 7.94%
- Online Customers:4.3% Growth
133
SWOT Analysis
Strengths
Strong Financial Position and Profitablity.
Strong Capital Base
Highest CASA ratio (>90%) in the Industry
2nd Lowest Infection Ratio among Peer Banks Offering of Comprehensive
Solutions to Clients
across Products (Debt, equity issuance, advisory and
facility arrangement)
Diversified Portfolio of Loans and Advances; and Diversified Income
Streams
Established Brand Name / Customer Loyalty Competent and
Committed Human Capital High Levels of Visibility through Wide
Customer
Outreach across Multiple Channels
Conservative and Sustainable Business Policy
Opportunities
Undifferentiated Products Lines across the Banking Sector
Emerging Trends in Consumer Behavior
High Traditional and Digital Financial Exclusion Base
Enhanced Market Scope for Service Offerings through Digital Products and
Channels
Forging Strategic Partnerships with Leading Technological Platforms
Leveraging Retail and Corporate Relationships for Cross Sell Initiatives
Deploying Intelligent Data Analytics' Tools to Identify Underlying
Patterns and Drive Business Growth
Exploiting Low Credit Penetration Ratio
Exploiting Growth and Expansion Opportunities in Emerging Economies
Expanding the Advisory and Other Services offered to
Clients and Investors
134
Weaknesses
Need to further strenghthen market share in deposits Investments Concentration in
Government Securities. Lower International Presence / Global Footprint
Compared to Peer Banks
Threats
Dynamic competitive landscape including Growing Competition from Fintechs and other
Emerging Entrants (refer to Comparative Landscape and Market Positioning section of the
Annual Report for further Details)
Unexpected Fluctuations in Discount Rates
Rising Operating/Technology Costs
Risks Arising from PESTEL Factors (refer to Risk and Opportunity Report section of the Annual
Report for further Details)
Value Chain
Value Chain
Framework
Support Activities Primary Activities
Governance and Risk Deposit mobilization and

Management: distribution network:
- Maintaining Regulatory compliance - Focus on low cost deposits and
- Increased Corporate governance improving CASA mix
- Risk Management Framework - Diversified portfolio of
- Implementation of Internal products
controls - Effective use of distribution
Technological developments: outreach and customer touchpoints
- Increased focus on digitization Asset Management and portfolio
- Decision support system enhancement
- Automation of existing manual - Increased focus on quality
systems asset growth
- Highest security standards - Recoveries of Non performing
Human Capital Management: loans (NPL)
- Workforce planning - Maintaining low infection ratio
- Fair recruitment and selection policies - Service portfolio
- Employee training and development enhancement
- Robust performance & reward Value created for stakeholders:
system - Contribution to the national
Finance and reporting: exchequer
- Compliance with applicable - Shareholder value maximization
Accounting standards - Consistent payout ratio
- Financial reporting on - Corporate social responsibility
Marketing, sales and transactions:
- Strong frontline sales force
- Marketing and communications
regulatory guidelines
- MIS for improved
decision-makin
:
- Customer service and complaint management
Chain
work
135
Competitive Landscape and Market Positioning
Factor Factor Factor
Threat of new entrants and substitute Bargaining power of customers Bargaining power of suppliers
products or services Implication Implication
Implication It is reasonably easy for retail MCB’s suppliers primarily comprise of
The large amounts of capital required to customers to switch to other banks its deposit-holders who are the Bank’s
setup a bank along with the length of time fully, or even avail part of their service key resource for capital and its
consumed to establish a significant requirements alternatively due to the employees, also known as the resource
brand loyalty and the need to adhere to low switching costs involved, hence of labor.
strict regulatory stipulations serve as shrinking the size of banking In an industry scenario with low
strong entry barrier for new entrants. engagement. However, their differentiation, it is easy for the primary
However, the domestic landscape has bargaining power stays limited due to deposit-holder group to switch to other
been evolving to include Fintech the minimal impact on the Bank’s banks, tempted by higher rates and
participants that are focusing on bottom line. better service standards. Further, share
transactional services and innovative The bargaining power of larger groups, of deposits is highly concentrated,
digital solutions for revolutionizing the corporate clients and high net worth which gives them excess bargaining
customer banking experience. individuals is comparatively greater power.
Corresponding Strategies since the rising competition has With a view to fund gaps in the Bank’s
Despite the imminent threat of new increased customers price sensitivity borrowings, MCB mobilizes debt from
entrants and emerging Fintech and the loss of sizable accounts and other financial institutions, with rates
disruptions, MCB is countering these sources of revenue from them can being largely
threats by engaging in the following substantially impact bank's market-driven. Hence, their bargaining
activities: profitability power is often considered to be
• improving customer-brand Corresponding Strategies medium to high.
relationship that goes beyond the MCB addresses the issue of customer When it comes to the bargaining power
minimum transactional services to retain bargaining power primarily by of suppliers of labor, individual
customer loyalty; focusing on clearly directed customer employees baring major executives
• investing substantially in digital retention and acquisition strategies; have little bargaining power.
platforms for improving customer customer service standards are being Corresponding Strategies
convenience; continuously augmented, services are MCB has embraced following
• launching new products and services being tailored to suit individual needs, strategies in order to derive an edge
that cater to a diversified customer innovative solutions are being devised over its supplier relationships:
base; and to make customer experiences more • providing a high degree safety to its
• adhering with all regulatory guidelines enjoyable, convenient and capital providers including investors,
with a view to ensure the highest levels of hassle-free and market competitive deposit-holders and other banking
compliance. rates are being offered to effectively partners;
increase switching costs for customers. A point further
re-enforced by Bank’s highest local
credit ratings of AAA/A1+ for long
term and short term debt respectively;
• creating
mutually-beneficial solutions across
the entire engagement spectrum; and
• sustaining employee retention focus
by offering a challenging, learning and
conductive work environment which is
duly complemented by career
progression opportunities and market
competitive salary and benefit
packages.
136
Risk Management Framework
Risk is an inherent part of banking business activities. The risk management framework and governance structure at MCB helps to mitiga
foreseeable risk in its various lines of business. Risk awareness forms an integral part of strategic and operational activities of risk m
Through its Global Risk Management Policy, Bank sets the best course of action under uncertainty by identifying, prioritizing, mitig
risk issues, with the goal of enhancing shareholders’ value. Bank's risk management structure is based on the following five gu
• Optimizing risk/return in a controlled manner
• Establishing clear responsibility and accountability
• Establishing & maintaining independent and properly resourced risk management function.
• Promoting an open risk culture
• Adopting international best practices in risk management
The Bank executes its risk strategy and undertakes controlled risk-taking activities within its risk management framework. The Board o
MCB Bank Limited actively drive the risk management framework. Under the valuable guidance of BOD, the Bank has a proa
dealing with factors that influence the financial standing of the bank, to generate recurrent earnings and to maximize shareholder’s v
appropriate trade-off between risk and returns. An effective risk management framework along-with a robust risk governance structure, s
liquidity coupled with a good quality of credit portfolio remains a cornerstone of the Bank’s risk management goals.
Empowerment and independence are the basic principles in risk management and it is implemented as a fundamental part of BOD’s visio
areas that are responsible for measuring, analyzing, controlling and monitoring risk from the frontline risk takers (i.e. business solicit
ensured within the Bank. In line with this principle, Group Head-Risk Management functionally reports to the “Risk Managem
Review Committee” (RM&PRC) which is the sub-committee of the BOD and administratively to the President.
Risk takers and Risk controllers have independent reporting lines, yet work together to increase Bank’s value via efficient util
Through a four eye principle for credit approval levels for corporate and retail banking, all exposure related requests are approved with th
at least two authorized individuals including one from the business side having credit approval authority and the other from risk managem
credit review authority.
The BOD and its RM&PRC have ensured formulation and implementation of a comprehensive risk management framework.
guidance, the Bank executed an effective risk strategy and continued to undertake controlled risk- taking activities within the ri
framework; combining core policies, procedures and process design with active portfolio management. The risk management framework
integrated risk management practices in key strategic, capital and financial planning processes and day-to-day business process
organization, with a goal to ensure that risks are appropriately considered, evaluated and responded to in a timely manner.
As a matter of principle, the Bank constantly endeavors to improve its risk management framework in the light of the international best p
regulatory guidelines. Accordingly, all policies and procedural documents that form part of the Bank’s risk management framework are r
keep them aligned with changing market dynamics, regulatory environment and international standards.
The RM & PRC guides the management on its risk taking activities within the policy framework approved by the BOD. Regula
RM&PRC are convened to oversee the risk exposures and their trends as a result of the various initiatives undertaken by the B
reviews different aspects of the loan portfolio which, among others, includes asset growth, credit quality, credit concentration, lending bu
cross sectional analysis. Review of various aspects of country risk, liquidity risk, market risk covering interest rate risk, foreign exchange
risk, technology risk along with the stress-testing is also a regular feature. Operational risk assessments, key risk indicators and major
& Control Self Assessment (RCSA) pertaining to processes, people, systems, technology and reputation are also regularly
committee. The committee also reviews in detail the Bank’s capital levels under Internal Capital Adequacy Assessment Process (ICAAP
Adequacy Ratio.
The Management Credit & Risk Committee is the management platform for discussion and deliberation on key risk
portfolio. Regular meetings of the committee are convened to oversee the risk exposures in the portfolio of the Bank.
Credit risk review ensures to minimize credit risk associated at account and portfolio level. During the year 2021, the Bank continued with the po
selective in disbursing its loan to low risk customers across all the industries & maintains a fairly diversified loan portfolio. Risk Review
managed to evaluate and approve increased number of loan requests, within required turnaround time, both for domestic and international op
request tracking & turnaround time monitoring software ensures tracking of proposals and monitoring of turnaround-time of cre
through the Risk Management Group. The Bank’s implemented Loan Origination System (LOS) for end to end automation of credit approv
effective management of internal policies and controls as well as regulatory requirements while also contributing towards its transition to a paperle
the Green Banking initiative.
For risk categorized as sovereign/ government risk, the lending exposure is spread over multiple government owned or controlled organizations and
are engaged in a variety of tasks that range from different development related works to utility distribution and production. To manage adverse outc
unfavorable scenarios, multiple control factors in the lending structure of the Bank provide additional comfort and support. Such controls range fro
collateral, pre-disbursement safety measures to post disbursement monitoring.
In order to further enhance the credit risk analysis, the bank has in place a probability of default based Internal Credit Risk Rating (ICRR) system w
statistical modeling and validation in line with Basel principles. The ICRR is currently focused on corporate-commercial customer category. Furthe
Models are also in place to calculate ICRR for Small Enterprise, Medium Enterprise, Agriculture Finance and Overseas exposures. An Internal Cre
Model for facility risk rating has also been implemented which reflects expected loss rate of a credit facility.
In addition to the credit risk, like all financial institutions, MCB is also exposed to market risk through its trading and other investment act
comprehensive control structure is in place to ensure that the Bank does not exceed its qualitative and quantitative tolerance for market risk. A num
VaR methodologies complemented by sensitivity measures, notional limits, stop loss triggers at portfolio level/asset class and stress testing are used
report the multi-dimensional aspects of market risk.
As an authorized derivatives dealer, the Bank is an active participant in the derivatives market. Overall limits in derivatives are approved by the B
limits structure for derivatives transactions is in place and exposures are monitored and reported on a continuous basis.
Operational Risk is being managed professionally in accordance with the Global Risk Management Policy, Policy on Internal Controls,
Management Framework and various regulatory instructions. Operational Risk Inventory database covering losses, control breaches and near m
maintained using professionally developed software. Operational risk events and Key Risk Indicators (KRI’s) are captured and management reports
process of Risk and Control Self-Assessment (RCSA) is in place to assess the operating effectiveness of controls and to implement remedial me
Updates on operational risk events are presented to the senior management and RM&PRC of the BOD on quarterly basis.
The Bank has developed Information Technology Risk Assessment Framework which enables better management of technology risk managed by I
Risk Assessment Framework helps the management to identify and manage the key security risks, threats and its associated vulnerabilities t
primary & secondary IT systems and applications of the Bank.The Bank has an internal operational risk awareness program which is aimed at bu
inculcating risk aware culture in the staff through workshops and on-job awareness.
Capital Structure of the Bank

The Bank remained a well-capitalized institution with a capital base well above the regulatory limits and capital requirements under BA
The Bank continues with a policy of sufficient profit retention to increase its risk absorption capacity. Bank’s total Capital Adequacy Ratio is
requirement of 11.50% (including capital conservation buffer of 1.50%). Quality of the capital is evident from Bank’s Common Equity Tier-1 (CET
weighted assets ratio which comes to 15.08% against the requirement of 6%. The Bank maintained the leverage ratio of 6.13% which is well above
of 3.0%.
Factor
Intensity of competitive rivalry
Implication
Intensity of competition within the domestic banking sector has
grown over the years. Banks have focused on developing a wide
range of asset and liability product offerings at competitive rates
in order to reinforce their customer acquisition strategies and
attract existing market share.
The relatively low switching cost from one bank to another has
further intensified the importance of competition within the
industry, especially in the retail and commercial banking
spheres.
Traditional banking operating models have been disrupted as the
outbreak of COVID-19 has challenged the existing banking
landscape and paved way for the industry to adopt emerging
technologies in rendering digital financial services amidst
responsibly enforced social distancing and containment
measures.
Corresponding Strategies
MCB has initiated following measures with a view to
consolidating and further improving its market share:
• by distinguishing itself in the marketplace primarily on the
basis of its history, experience and brand image; and
• staying on the cutting edge of offering customer convenience
and low-cost banking solutions.
and governance structure at MCB helps to mitigate and counter any
f strategic and operational activities of risk management.
nder uncertainty by identifying, prioritizing, mitigating and monitoring
ent structure is based on the following five guiding principles:
ement function.
in its risk management framework. The Board of Directors (BOD) at

luable guidance of BOD, the Bank has a proactive approach in
ecurrent earnings and to maximize shareholder’s value by achieving an
k along-with a robust risk governance structure, strong capital &
he Bank’s risk management goals.
mplemented as a fundamental part of BOD’s vision. Independence of
m the frontline risk takers (i.e. business soliciting groups) is
ent functionally reports to the “Risk Management & Portfolio
stratively to the President.
ther to increase Bank’s value via efficient utilization of capital.

all exposure related requests are approved with the formal consent of
pproval authority and the other from risk management side having
omprehensive risk management framework. Under the BOD’s

ke controlled risk- taking activities within the risk management
o management. The risk management framework requires strong
processes and day-to-day business processes across the
nd responded to in a timely manner.
framework in the light of the international best practices and

t of the Bank’s risk management framework are regularly reviewed to
tional standards.
licy framework approved by the BOD. Regular meetings of

ult of the various initiatives undertaken by the Bank. The committee
th, credit quality, credit concentration, lending business trend and
t risk covering interest rate risk, foreign exchange risk, equity price
isk assessments, key risk indicators and major findings of Risk
ms, technology and reputation are also regularly reviewed by the
l Capital Adequacy Assessment Process (ICAAP) and Capital
or discussion and deliberation on key risk issues in the

s in the portfolio of the Bank.
g the year 2021, the Bank continued with the policy to remain
a fairly diversified loan portfolio. Risk Review successfully
ound time, both for domestic and international operations. An in-house
s and monitoring of turnaround-time of credit proposals routed
(LOS) for end to end automation of credit approval process, facilitates
lso contributing towards its transition to a paperless environment under
overnment owned or controlled organizations and departments which

tribution and production. To manage adverse outcomes in terms of
nal comfort and support. Such controls range from quality of eligible
ased Internal Credit Risk Rating (ICRR) system which is based on

corporate-commercial customer category. Furthermore; Scoring
Finance and Overseas exposures. An Internal Credit Risk Rating
of a credit facility.
sk through its trading and other investment activities. A
and quantitative tolerance for market risk. A number of metrics like
ortfolio level/asset class and stress testing are used to capture and
erall limits in derivatives are approved by the BOD. Counter party

orted on a continuous basis.
nagement Policy, Policy on Internal Controls, Operational Risk

base covering losses, control breaches and near miss events is being
ors (KRI’s) are captured and management reports are generated. A
ess of controls and to implement remedial measures as needed.
RC of the BOD on quarterly basis.
ter management of technology risk managed by IT Risk team. The IT

ks, threats and its associated vulnerabilities to the critical
onal risk awareness program which is aimed at building capacity and
tory limits and capital requirements under BASEL frameworks.

capacity. Bank’s total Capital Adequacy Ratio is 17.01% against the
evident from Bank’s Common Equity Tier-1 (CET1) to total risk
d the leverage ratio of 6.13% which is well above the regulatory limit
Liquidity Management and Strategy to Overcome Liquidity Position
The Asset Liability Management Committee of the Bank has the responsibility for formulation of overall strategy and oversight of the As
Management (ALM) function. BOD has approved a comprehensive Liquidity Risk Policy (part of the Global Risk Management Polic
policies regarding maintenance of various ratios, funding preferences and evaluation of Banks’ liquidity under normal and stress sce
underlying policies and procedures are reviewed and approved regularly at the senior management and BOD levels covering the
Management Policy, Global Treasury Policy, Investment Policy and Liquidity Strategy including Contingency Funding Plan.
Bank’s comprehensive liquidity management framework assists it to closely watch the liquidity position through monitoring of early war
stress testing in order to ensure effective and timely decision making. The liquidity risk management approach at the Bank involves intra
management, managing funding sources and evaluation of structural imbalances in the statement of financial position. A large and
deposits base, along with a strong capital base provides strength and support for maintenance of a strong liquidity position. The Bank
portfolio of marketable securities that can be realized in the event of liquidity stress.
Further, in line with SBP’s directives, the Bank has fully implemented BASEL III required liquidity standards and maintains liquidity rat
reported Liquidity Coverage Ratio (LCR) of 246.31% and Net Stable Funding Ratio (NSFR) of 155.00% against a requirement of 100%.
Sensitivity Analysis due to Foreign Currency Fluctuation

The PKR depreciated by around 10.44% against the US Dollar in 2021. Foreign exchange risk exposes the bank to changes
exposure denominated in foreign currencies due to the exchange rate fluctuation and volatility. The types of the instruments exp
mainly investments in foreign branches, advances and deposits denominated in foreign currency, cash flows in foreign currencies a
exchange transactions etc.
The core objective of the foreign exchange risk management is to ensure that the foreign exchange exposure of the Bank remains within
appetite and insulates the Bank against undue losses that may arise due to volatile movements in foreign exchange rates or inter
Limit structure to manage foreign exchange risk including gap limits in different tenors in major currencies are in place to control caption
open position and Foreign Exchange Exposure Limits (FEEL) is monitored and reported on intra-day and day end basis. Foreign exchang
including VaR are generated and monitored on a daily basis. Stress testing of foreign exchange portfolio and its reporting to seni
and RM&PRC of the BOD is also a regular feature.
Impact of 1% change in foreign exchange rates on the Profit and loss account and other comprehensive income is as
follows:
2021 2020
Banking Book Trading Book Banking Book Trading Book
(Rs. 000)
Profit and loss account (66.007) –
Other comprehensive income 117.543 –
Risk and Opportunity Report

At MCB, a comprehensive Risk Management Framework around an approved risk appetite is in place. Mechanisms are defined for every identifie
that the Bank continuously evaluates the associated risk and ensures presence of operational mitigating controls. The Bank remains comm
every possible opportunity to translate it into revenues / returns for the stakeholders, while making sure that the related risk is adequately managed.
Risk Governance Model

• Board of Directors (BOD)
• Risk Management & Portfolio Review Committee (RM&PRC)
• Management Credit & Risk Committee (MC&RC)
• Group Head – Risk Management
Graphical presentation of risk governance structure is as follows:

Three lines of Defence model
The Bank has a well-structured Risk Management model based on three lines of defense which are independent of each other. Each line of defen
different organizational units. The first line of defense consists of business divisions and support units from whose activities the risks a
being the second line of defense develops frameworks, policies, procedures and establishes risk appetite. Periodical stress testing and co
are also an integral part of the second line of defense. The third is the audit and compliance functions which offer an independent oversight.
l strategy and oversight of the Asset Liability
Global Risk Management Policy), which stipulates
idity under normal and stress scenarios. The
nt and BOD levels covering the Global Risk
Contingency Funding Plan.
through monitoring of early warning indicators and

roach at the Bank involves intra-day liquidity
financial position. A large and stable customer
ong liquidity position. The Bank also has a substantial
dards and maintains liquidity ratios. The Bank

% against a requirement of 100%.
exposes the bank to changes in the value of

The types of the instruments exposed to this risk are
h flows in foreign currencies arising from foreign
sure of the Bank remains within defined risk

n foreign exchange rates or interest rates.
ies are in place to control captioned risk. Bank's net

d day end basis. Foreign exchange risk parameters
tfolio and its reporting to senior management
ehensive income is as
1.792 –
106.202 –
s are defined for every identified risk to ensure

ontrols. The Bank remains committed to exploring
ated risk is adequately managed.
each other. Each line of defense is executed by
m whose activities the risks arise. RM&PRC
Periodical stress testing and continuous monitoring
n independent oversight.
Assessment of the principal risks facing the Bank by the Board of Directors:
The BOD’s have carried out a robust assessment of the principal risks facing the Bank, including those that would threaten the business m
performance, solvency or liquidity.
Bank has identified the following risks after analyzing the external and internal factors:
Factors Source
Economic External
External
External
External/Internal
Technology/ Systems Internal/ External
Political External
Regulator Internal/External
Social Internal/External
Materiality Approach
Matters are considered to be material if, individually or in aggregate, they are expected to significantly affect the re
performance and profitability of the Bank. The materiality process helps to navigate the complex landscape of stakeholder exp
opportunities. The BOD of the Bank has approved Materiality Policy for the Bank.
the principal risks facing the Bank by the Board of Directors:
ried out a robust assessment of the principal risks facing the Bank, including those that would threaten the business model, future
cy or liquidity.
d the following risks after analyzing the external and internal factors:
Risks
Market risks: The risk of loss arising from potential adverse changes in the value of the Bank’s assets
and liabilities from fluctuation in market variables including, but not limited to, interest rates, foreign
exchange, equity prices, commodity prices, credit spreads, implied volatilities and asset correlations.
Capital adequacy risk: The risk that the Bank has an insufficient level or composition of capital to
support its normal business activities and to meet its regulatory capital requirements under normal
operating environments or stressed conditions.
Credit risk: The risk of loss to the bank from the failure of clients, customers or counterparties,
including sovereigns, to fully honour their obligations, including the whole and timely payment of
principal, interest, collateral and other receivables.
Liquidity risk: The risk that the bank is unable to meet its contractual or contingent obligations or that it
does not have the appropriate amount, tenor and composition of funding and liquidity to support its
assets.
Technological /Information Security Risk: Technology risks having potential impact due to
technology disruption or failure to disrupt bank’s business process posing adverse impact on
Confidentiality, Integrity and Availability of MCB’s technology environment.
Information Technology Risk Assessment helps the management to identify and manage the key
risks, potential threats and associated vulnerabilities to the critical primary & secondary IT systems
and applications of the Bank.
Operational Risk
The risk of loss to the Bank from inadequate or failed processes or systems, human factors or due to
internal/external events (e.g. fraud) where the root cause is not due to credit or market risks.
Country risk: Political stability and controlled law & order situation is a pre-requisite for any
economic development and reposes investor confidence in the country, providing corporates a
potential investment opportunity. However, political instability can negatively impact the economy
/equity market, thus resulting in decreased profitability.
Regulatory Risk: The risk of loss or imposition of penalties, damages or fines from the failure of the
firm to meet its legal obligations including regulatory or contractual requirements.
Key sources of uncertainty include expected regulatory requirements specifically implementation
of IFRS 9 in Pakistan, which may have negative impact on the bottom line of the banks.
Reputation risk: The risk that an action, transaction, investment or event will reduce trust in the Bank’s
integrity and competence by clients, counterparties, investors, regulators, employees or the public.
proach
dered to be material if, individually or in aggregate, they are expected to significantly affect the reputation,
profitability of the Bank. The materiality process helps to navigate the complex landscape of stakeholder expectations, risks and
OD of the Bank has approved Materiality Policy for the Bank.
Summarized risks, opportunities and related mitigating factors are documented below:-
Risk type Materiality Rating Probability of Risk Strategy
Occurrence
Market Risk High Medium probability Measurement: Bank is exposed to market risk through its trading and
other investment activities. Metrics like VaR methodologies complemented
by sensitivity measures, notional limits, loss triggers at a detailed
portfolio level and stress testing are used to capture and report the
multi- dimensional aspects of market risk.
Monitoring: A comprehensive structure, ensuring the bank does not exceed
its qualitative and quantitative tolerance for market risk, is in place.
Management: The bank has followed a conservative and balanced
approach towards risk taking in the market risk area. The robust risk
management architecture ensures that the exposures remain within the
defined risk appetite.
Furthermore, a comprehensive control structure is in place to ensure that the
Bank does not exceed its qualitative and quantitative tolerance for market
risk. A number of metrics like VaR methodologies complemented by
sensitivity measures, notional limits, stop loss triggers at portfolio level/asset
class, and stress testing are used to capture and report the multi- dimensional
aspects of market risk.
Capital Adequacy High Medium probability Measurement: The Bank is a well-capitalized institution with a capital base
Risk well above the regulatory limits and Basel-III requirements.
Monitoring: The Bank regularly assesses the capital requirements
and ensures that the minimum capital requirements specified by the
State Bank are adhered to. Internal Capital Adequacy Assessment is a
regular activity. Stress levels of major risks are assessed against the
minimum capital requirement.
Regular assessment of capital enables an evaluation of the amount, type
and distribution of capital required to cover these risks.
Management: The Bank remained a well-capitalized institution with a
capital base well above the regulatory limits and capital requirements under
BASEL frameworks. The Bank continues with a policy of sufficient profit
retention to increase its risk absorption capacity. Bank’s total Capital
Adequacy Ratio is 17.01% against the requirement of 11.50% (including
capital conservation buffer of 1.50%). Quality of the capital is evident from
Bank’s Common Equity Tier-1 (CET1) to total risk weighted assets ratio
which comes to 15.08% against the requirement of 6%. The bank maintained
a leverage ratio of 6.13% which is well above the regulatory limit of 3.0%.
Going-concern capital requirements are assessed on a
forward-looking basis – including as part of the annual budgeting
process. These assessments consider the resilience of capital
adequacy and leverage ratios under a range of hypothetical future
states. The assessments incorporate assumptions regarding a range of
regulatory and accounting aspects, such as IFRS 9, taking account of a
number of factors including economic variables and impairments.
The Bank will continue the policy of sufficient profit retention to increase its
risk taking capacity and capitalize opportunities to protect the interests of
stakeholders in the short, medium and long term.
nted below:-
Impacted
CAPITAL
Financial
Financial
Risk type Materiality Rating Probability of Risk Strategy
Occurrence
Credit Risk High Medium probability Measurement: Credit Risk Management function identifies, measures,
manages, monitors and mitigates credit risk. Credit Risk is measured
and estimated through detailed financial and non-financial analyses,
internal and external credit risk ratings and customers’ behavior analysis.
Stress testing of top customers in credit portfolio is also carried out
regularly.
Monitoring: Credit Risk Management organizational structure
ensures pre and post-facto management of credit risk. Credit Review
function carries out pre-fact evaluation of counterparties & the credit
structures and hindsight reviews, the Credit Risk Control (CRC)
function performs post-fact monitoring including security
documentation and limits monitoring. Business side continuously keeps in
touch with customers to have updated information about the clients.
Management: Bank has been selective in taking exposure on good quality
borrowers across all industry segments. Multiple factors in bank’s lending
structure provide additional comfort and support in mitigating credit risk.
These include quality of eligible collateral, pre-disbursement safety
measures, post disbursement monitoring, etc. Bank has a fairly
diversified loan portfolio. For risk categorized as sovereign/ government
risk, MCB’s lending exposure is spread over multiple government owned
or controlled organizations and departments which are engaged in a
variety of tasks that ranges from different development related works
to utility distribution and production.
Credit Risk Review ensures to minimize credit risk associated at account
and portfolio level. During the year, the Bank continued with the
policy to remain selective in disbursing its loan to low risk
customers across all the industries & maintains a fairly diversified
loan portfolio. Risk Review successfully managed to evaluate and
approve increased number of loan requests, within required turnaround
time, both for domestic and international operations. Bank’s
implemented Loan Origination System (LOS) for end to end automation of
credit approval process facilitates effective management of Bank’s
internal policies & controls as well as regulatory requirements. LOS has
also contributed towards Bank’s transition to paperless environment
under the Green Banking initiative.
For risk categorized as sovereign/ government risk, the lending
exposure is spread over multiple government owned or controlled
organizations and departments which are engaged in a variety of
tasks that range from different development related works to utility
distribution and production. To manage adverse outcomes in terms of
unfavorable scenarios, multiple control factors in the lending structure of the
Bank provide additional comfort and support. Such controls range from
quality of eligible collateral, pre- disbursement safety measures to
post disbursement monitoring.
Through a four eye principle for credit approval levels for corporate
and retail banking, all such exposure related requests are approved
with the formal consent of at least two authorized individuals
including one from business side having credit approval authority and
other from risk management side having credit review authority.
Credit Risk High Medium probability The MC&RC is the management platform for discussion and
deliberation on key risk issues in the portfolio. Regular meetings of the
committee are convened to oversee the risk exposures in the portfolio of the
Bank.
In order to further enhance the credit risk analysis, the bank has in place a
probability of default based Internal Credit Risk Rating (ICRR) system
which is based on statistical modeling and validation in line with Basel
principles. The ICRR is currently focused on corporate-commercial
customer category. Furthermore; Scoring Models are also in place to
calculate ICRR for Small Enterprise, Medium Enterprise, Agriculture
Finance and Overseas exposure. An Internal Credit Risk Rating Model
for facility risk rating has also been implemented which reflects expected
loss rate of a credit facility.
Liquidity Risk High Medium to Low Measurement: MCB regularly performs Liquidity Risk Analysis and
probability liquidity stress tests as part of its liquidity monitoring activities. The
purpose of the liquidity risk assessments and stress tests is intended to
ensure sufficient liquidity for the Bank under both idiosyncratic and
systemic market stress conditions.
Monitoring: Liquidity positions are regularly monitored through
established early warning Indicators and liquidity risk analysis. Liquidity
Coverage Ratio and Net Stable Funding Ratios are monitored regularly.
Management: MCB’s Liquidity Risk Management approach involves
intraday liquidity management, managing funding sources and evaluation
of structural imbalances in balance sheet structure.
The Bank’s large and stable base of customer deposits, along with Bank’s
strong capital base, indicates strong liquidity position. Bank also has a
substantial portfolio of marketable securities that can be realized in the event
of liquidity stress.
The Asset Liability Management Committee of the bank has the
responsibility for the formulation of overall strategy and oversight of the
Asset Liability Management (ALM) function. BOD has approved a
comprehensive Liquidity Risk Policy (part of Global Risk
Management Policy), which stipulates policies regarding maintenance
of various ratios, funding preferences, and evaluation of Banks’ liquidity
under normal and stress scenarios. Underlying policies and procedures
are reviewed and approved regularly at the senior management and BOD
Levels including Global Risk Management Policy, Global Treasury
Policy, Investment Policy and Liquidity Strategy.
Further, in line with SBP’s directives, Bank has fully implemented
BASEL III required liquidity standards and maintains liquidity ratios
including LCR and NSFR with a considerable cushion over and above
the regulatory requirement to mitigate any liquidity risk.
Technological/ High Low probability Monitoring & Management: Through technology risk monitoring
Information process, bank tracks and evaluates the levels of technology and security risk
Security Risk as well as monitoring the risk itself. The findings produced by risk
monitoring processes are used to create new risk mitigation and monitoring
strategies considering the regulatory compliance in-line with the best
practices .
The Bank has developed Information Technology Risk Assessment

Framework which enables better management of technology risk properly.
The Information Security Risk Division is headed by a Chief
Information Security Officer (CISO) reporting to the Group Head Risk
Management.
Country Risk Low Medium to low probability Measurement: Bank’s Country Risk exposure is assessed against bank’s
cross border trade and treasury activities.
Monitoring & Management: Monitoring of risk exposure is a regular
activity. Country exposure limits both for trade and treasury exposures are in
place, which broadly capture direct exposure on sovereigns and foreign
domiciled counterparties.
Operational Risk Medium Medium to low probability Measurement: A database covering losses, control breaches,
near misses & KRIs is being maintained. Operational
Effectiveness of controls is assessed using the Risk & Control Self-
Assessment (RCSA) process.
Monitoring: Monthly/Quarterly updates on operational risk events are

presented to senior management, MC&RC and the RM&PRC of
the Board.
Management: The bank has an internal Operational Risk awareness

program which is aimed at building capacity and inculcating risk
culture in the staff through workshops and on-job awareness. Banks’
capacity to capture & report operational risk events and KRIs is further
enhanced by implementing more professionally developed Operational
Risk Management Software. Bank uses RCSA as an important tool
to assure control effectiveness and take timely corrective measures where
required.
Regulatory Risk Medium Medium probability Measurement: Management of regulatory risk entails early identification
and effective management of changes in legislative and regulatory
requirements that may affect the Bank.
Monitoring & Management: The Bank reviews key regulatory

developments in order to anticipate changes and their potential impact on its
performance.
Bank endeavors to maintain healthy relationships with regulators and

continued compliance with regulatory requirements.
Reputation risk Low Low probability Monitoring & Management: Reputational risk is managed on an ongoing
basis through a policy framework that details expected behavior of the
business and employees. It guides us on the monitoring of employee
behavior and specific client responses as well as to society in general. This
includes precise and transparent reporting through our integrated annual
report, annual financial statements and
through other public statements. Our risk mitigation strategy includes:
• a centralized policy on media;

• an escalation process for complaints; and
• clear relationships with stakeholders
Impacted
CAPITAL
Financial
Financial
Financial
Financial,
Intellectual
Financial
Financial,
Intellectual
Financial,
Intellectual
Financial,
Intellectual,
Social &
Relationship
Capital
Information about defaults in payment of any debts and reason thereof
There is no default by the Bank in payments of any debts during the year.
Inadequacy in the Capital structure and plans to address such inadequacy
The Bank is not presently facing any kind of inadequacy in capital structure.
Opportunities:
Source Opportunity
External Building strategic national/international alliances to
contribute towards China Pakistan Economic Corridor (CPEC)
execution.
Internal Strong capital base and high Capital Adequacy Ratio provides the
opportunity of exploring International avenues in
emerging/developed markets to expand Bank’s network.
Internal Developing and launching new deposit products to align &

strengthen the existing product menu and to capitalize on
the growing branchless and mobile/ digital Banking opportunities.
Internal Increasing Bank’s advances portfolio with enhanced focus on

agriculture, SME and other segments.
External Facilitating non-resident Pakistanis to increase the flow of

home remittances.
son thereof
uring the year.
ch inadequacy
capital structure.
Strategy to Materialize
Re-aligning the business model through segmentation and expansion of
branch network.
Explore new markets after performing the feasibility studies.
Increase focus on digitalization and automation of process.

Introduce new products considering the needs of different segments of
the population.
Widening the scope of branch network in potential / untapped areas.

Align product expertise with client domicile.
Streamline and simplify processes for quick disbursement of advances
Entering into new contracts with foreign agents.

Placement of Bank representatives overseas and increase marketing
activities.
Explore new markets to increase customer base.
Directors’ Report
We are pleased to present, on behalf of the Board of
Directors, the annual report of MCB Bank Limited (MCB) for the year ended December
31, 2021.
Profit and Appropriation
The profit before and after taxation for the year ended December 31, 2021
together with appropriations is as under:
Rs. in Million
Dividends
The Board of Directors declared a final cash dividend of Rs. 5.0 per share for
the year ended December 31, 2021, which is in addition to Rs. 14.0 per share interim
dividends already paid to the shareholders, taking the dividend payout ratio for 2021
to 73%. The effect of the final cash dividend declared is not reflected in the above
appropriations.
Performance Review
MCB’s Profit After Tax (PAT) for the year ended December 31, 2021, posted a
growth of 6% to reach Rs. 30.81 billion; translating into Earning Per Share (EPS)
of Rs.
26.00 compared to EPS of Rs. 24.50 reported in last year.
Average Policy rate registered a decline of 19% (166bps) from an average of 8.95% in last
year to 7.29% in current year. However, on account of strategically aligned growth
Profit Before Taxation 51,989
Taxation 21,178
Profit After Taxation 30,811
Un-appropriated profit brought forward 69,835
Re-measurement gain on defined benefit obligations - net of tax 38
Surplus realized on disposal of revalued fixed assets - net of tax 115
Surplus realized on disposal of non-banking assets - net of tax 250
Transfer in respect of incremental depreciation from surplus on 82
revaluation of fixed assets to un-appropriated profit - net of tax
70.320
Profit Available for Appropriation 101.131
Appropriations:
Statutory Reserve 3,081
Final Cash Dividend at Rs. 15.0 per share 17,776
- December 31, 2020 5,333
First Interim Cash Dividend at Rs. 4.5 per share 5,925
- March 31, 2021 5,333
Second Interim Cash Dividend at Rs. 5.0 per share
- June 30, 2021
Third Interim Cash Dividend at Rs. 4.5 per share
– September 30, 2021
Total Appropriations 37.448

Un-appropriated Profit Carried Forward 63.683
Earnings Per Share (Rs) 26.00

in average current deposits and a balanced mix of earning
assets, net interest income of the Bank decreased by 10% only, from Rs.
71.33 billion to Rs. 63.99 billion.
Non-markup income registered a growth of 11% and aggregated to Rs.
20.1 billion against Rs. 18.1 billion in last year. Improved transactional
volumes, surge in business activities, diversification of revenue
streams through continuous enrichment of Bank’s product suite, investments
towards digital transformation and an unrelenting focus on upholding the
high service standards supplemented a growth of 14% in fee income whereas
dividend and foreign exchange incomes increased by 86% & 48%
respectively.
The Bank continues to manage an efficient operating expense base
and manage costs prudently with a moderate increase of 8%, despite
sustained inflationary pressures amidst currency devaluation and
rising commodity prices, higher compliance related regulatory charges,
expansion in branch outreach and regular performance and merit
adjustments of the Human Capital.
On the provision front, proactive monitoring and recovery efforts led to
a net reversal of Rs. 910 million in specific provision maintained
against non-performing loans (NPL’s) while the general loss reserve of
Rs. 4 billion created amidst the uncertainty surrounding the COVID-19
outbreak was reversed, as the systematic risks surrounding the economic
recovery have receded and the Bank has created specific provision
against exposures that reflected signs of financial distress.
Persistent focus on maintaining a robust risk management framework
encompassing structured assessment models, effective pre-disbursement
evaluation tools and an array of post disbursement monitoring systems has
enabled MCB to effectively manage its credit risk. The Non-performing
loan (NPLs) base of the Bank recorded a decrease of Rs. 698 million and was
reported at Rs. 50.49 billion. The Bank has not taken FSV benefit in
calculation of specific provision and carries an un-encumbered
general provision reserve of Rs. 636 million. The coverage and infection ratios of
the Bank were reported at 90.83% and 7.94% respectively.
On the financial position side, the total asset base of the Bank, on an
unconsolidated basis, was reported at Rs. 1,970 billion (+12%). The gross
advances of the Bank registered historic growth of Rs. 122 billion (+24%),
above the industry growth, to close the year at Rs. 636 billion. The corporate
lending book grew by Rs. 106 billion (31%) whereas the consumer loan
portfolio garnered significant interest and increased by Rs. 9.5 billion
(32%) on the back of significant activity in the construction and auto
segment.
On the liabilities side, achieving growth in no-cost current
account base remained a key strategic objective for the Bank. Thereby,
non-remunerative deposits grew by 15.1% to close at Rs. 563 billion;
improving their mix in the total deposits to 40% in absolute terms as at
December 31, 2021. CASA mix was reported at 93% whereas the total
deposits of the Bank grew by 9% to close out the year at Rs. 1,412 billion.
Return on Assets and Return on Equity reported at 1.65% and 19.11%
respectively, whereas the book value per share was reported at Rs.
135.13.
During the year MCB attracted home remittance inflows of USD
3.527 billion to further consolidate its position as an active
participant in SBP’s cause for improving flow of remittances into the
country through banking channels.
While complying with the regulatory capital requirements, the Bank’s
total Capital Adequacy Ratio (CAR) is 17.01% against the requirement
of 11.5% (including capital conservation buffer of 1.50% as reduced
under the BPRD Circular Letter No. 12 of 2020). Quality of the capital is
evident from Bank’s Common Equity Tier-1 (CET1) to total risk
weighted assets ratio which comes to 15.08% against the requirement of
6%. Bank’s capitalization also resulted in a Leverage Ratio of 6.13%
which is well above the regulatory limit of 3.0%. The Bank reported
Liquidity Coverage Ratio (LCR) of 246.31% and Net Stable Funding
Ratio (NSFR) of 155.00% against requirement of 100%.
The Bank’s exceptional performance has also been recognized
by the globally coveted Finance Asia’s Country Awards wherein it
has been bestowed with the “Best Bank in Pakistan” accolade in 2021.
Impact of Government policies on the Bank performance
The banking sector in Pakistan has exhibited operational resilience to the
COVID-19 pandemic induced stress. Pre- emptive response by the
State Bank of Pakistan (SBP) played a pivotal role in warding off
outbreak’s adverse implications, through rollout of following key
support measures:
• Reduction in the capital conservation buffer by 100 basis points to
1.5%;
• Increasing the regulatory limit on extension of credit to SMEs to Rs
180 million;
• Allowing banks to defer borrowers’ principal loan payments by
one year and or restructure / reschedule loans for borrowers who
require relief of principal repayment exceeding one year and / or mark-
up with no reflection on credit history; and
• Introduction of refinancing schemes for payment of
wages and salaries.
Apart from relief measures, to propel the construction
related segments of the economy, the mandated program of Mera Pakistan Mera Ghar
gained serious traction during the calendar year. The introduction of Roshan Digital
Account was another key drive undertaken by the industry to facilitate our Non-resident
Pakistani segment. The inflow at MCB has summed up to approximately USD
216 million under the Roshan Digital Account (RDA) initiative.
From subsidized financing / re-finance perspective, “Temporary Economic
Refinance Facility” (TERF) introduced to facilitate investment in new
industrial projects as well as capacity expansion has contributed in an historic 24%
growth in advances for the year. The Bank has also disbursed loans under Kamyab
Jawan Program of the Government of Pakistan.
The digital transformation drive of the country registered some major accomplishments
during the year. Key initiatives include digitalization of FOREX regulatory
approval system, introduction of Asaan Mobile account scheme in collaboration with
NADRA & PTA, and ‘RAAST’ instant payment system; enabling it to push its digital
agenda through multiple layers in the society.
Economy Review
Global Economy
During the year in review, the global economic growth witnessed a resurgence
following the COVID-19 caused downturn in 2020. Amidst the emergence of new
variants, the inversion in economic headwinds was largely tied to the development, quick
rollout and widespread deployment of COVID-19 vaccines; hence, the global
economy is being projected to grow by 5.9% in 2021 as compared to a negative growth of
3.2% reported in 2020.
While the broader global activity has grown, the prolonged nature of the health crisis has
impacted economies beyond traditional measures, with potentially long-lasting and far
reaching repercussions, and has led to the emergence of a disparate recovery trend between
high income and low and middle income economies; partly due to the unequal access to
vaccines.
A pent-up in consumer demand, fueled by increase in personal savings, together with
supply side pressures due to lingering disruptions in labor and global energy
markets, production and supply chain bottlenecks, and shipping and transportation
constraints has propelled inflation at an extremely rapid pace.
Amidst the evolution in economic scenarios through the various stages of pandemic-related
health and economic crises, governments across the globe continue to respond with a
number of policy initiatives that attempt to balance competing policy objectives and the
ultimate outcome
of these measures shall remain imperative in shaping
the global economic outlook and ensuring recovery on a sustainable path.
Domestic Economy
In the backdrop of the global economic uncertainty caused by COVID-
19 pandemic, in 2020, the State Bank of Pakistan had eased its monetary
policy and introduced inexpensive financing schemes to support
consumer and industrial demand in the economy. Resultantly,
the first half of 2021 showed robust economic growth.
In the second half of the year, the economy began experiencing
higher-than-expected growth in aggregate demand from the easing
measures introduced earlier. This coupled with rising international
commodity prices resulted in higher import bills, causing the current
account deficit to expand and introducing cost push inflationary risks
to the economy. In the last quarter of 2021, SBP tightened the policy rate
to moderate this heightened demand and pave the way for slow yet
sustainable growth.
The headline annual inflation rate picked up during 2021. From the
low year-on-year reading of 5.65% in January, it reached 11.1% in April
and continued its upward momentum to reach a twenty-one-month high
of 12.28% in December 2021. Increased aggregate demand, higher
commodity and energy prices, and disruptions in supply channels were
major inflationary triggers as highlighted by SBP.
On the external front, Pakistan reported a current account deficit
of USD 9.092 billion for first half of FY22 as compared to a deficit
of USD 1.916 billion in FY21 where the increased remittances and
export numbers had kept the current account balance in check. As
aggregate demand in the economy grew, imports started rising at a faster
pace than exports. To support the Balance of Payments, the
country issued EURO bonds in the international market. On March
30, 2021, Pakistan received USD 2.5 billion through these bonds.
Moreover, SBP’s Roshan Digital Account (RDA) gained traction
during the year crossing the USD 3.16 billion mark by
December 2021. Pakistan also received USD 15.808 billion in
workers’ remittances in July-Dec 21.
Starting the calendar year at 159.8344 against USD, PKR depreciated
by 10.4% to 176.5135 by the end of 2021. On December 31, 2021,
Pakistan’s total liquid reserves stood at USD 23.883 billion.
In the last four months of 2021, SBP began raising policy rate to counter
inflationary pressures in the economy and ensure sustainable
growth. By December 2021, the central bank had raised policy rate by a
cumulative of 275 bps to 9.75%. According to the central bank, the
economy was very close to achieving mildly positive
real interest rates. Therefore, in the near-term, the SBP
expected monetary settings to remain unchanged.
On fiscal side, the government in its budget targeted tax revenue of Rs
5.829 trillion envisioning a budget deficit of Rs 3.42 trillion or 6.3% of
GDP. On the behest of the IMF, the GOP has withdrawn sales tax
exemptions of about Rs 343 billion with effect from 16th Jan, 2022. The
FBR collected Rs 2.92 trillion in net taxes for the first half of FY22,
exceeding its target by Rs 287 billion.
Future Outlook of the Economy
The highly contagious Omicron variant of COVID-19 is expected to have
a negative impact on aggregate demand in the economy. Moreover, recent
contractionary monetary policy adopted by the SBP is expected to further
moderate growth in domestic demand. In response to such policies, the
inflationary and external account pressures are likely to gradually lessen in
the economy.
On 2nd Feb, 2022, the IMF Executive Board approved sixth review of the
Extended Fund Facility (EFF) which has resulted in the immediate
disbursement of the equivalent of Special Drawing Rights (SDR) 750
million (about USD1bn) to Pakistan. The total disbursement under this
program has now reached SDR 2,144 million (about USD3 billion). In
their special report on Pakistan, the Fund noted that while economic activity
rebounded strongly in 2021, external account and inflationary pressures
also started to build. Pointing to recent monetary policy tightening by
SBP and introduction of Finance (Supplementary) Bill by GOP, the
Board stated that the policies “were appropriate to safeguard
macroeconomic stability and debt sustainability.”
The COVID-19 pandemic outbreak has further accentuated the
need on the financial industry to expedite digital transformation required for
reshaping the banking services architecture in Pakistan. Going forward,
the ability of banks to launch innovative and customer centric solutions by
leveraging technological progressions and intelligent analytics shall
eventually enable the shift in horizon from traditional banking towards an
increased adoption of advanced e-banking avenues for supporting enhanced
customer experiences.
Risk Management Framework
The risk management framework has been separately disclosed in the
Annual Report.
Credit Rating
The Bank enjoys highest local credit ratings of AAA / A1+ categories for
long term and short term respectively, based on PACRA notification dated
June 23, 2021.
Statement on Internal Control
The Board is pleased to endorse the statement made by management
relating to Internal Control over Financial Reporting (ICFR) and
overall internal controls. The Management’s Statement on Internal
Controls is included in the Annual Report.
Statement under Code of Corporate Governance and section 227 of
Companies Act 2017:
The Board of Directors is committed to ensure that the
requirements of Corporate Governance set by the Securities and
Exchange Commission of Pakistan and requirements of Section 227
of Companies Act 2017 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 a fair state of its affairs, result
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 preparation of financial statements. Accounting
estimates are based on reasonable and prudent judgment.
• International Financial Reporting Standards, as applicable in
Pakistan, have been followed in preparation of the financial
statements and any departure there from has been adequately
disclosed and explained in the Annual Accounts.
• There has been no material departure from the best practices of
corporate governance.
• There are no significant doubts upon the Bank’s
ability to continue as a going concern.
• Profit amounting to Rs. 3.08 billion has been transferred
to the Statutory Reserve for the year 2021.
• The System of Internal Control is sound in design and has been
effectively implemented and monitored.
• Key operating and financial data of the last six years is
presented in the stakeholder’s section of this Annual Report.
• Pattern of Shareholding, complying with the requirements
prescribed by the code is annexed with this Annual Report.
• Statement of Compliance with Code of Corporate
Governance is included in the Annual Report.
• Composition of the Board is given in the Statement of Compliance
with the Code of Corporate Governance in the corporate governance
section of this Annual Report.
• Names of the persons who, at any time during the year 2021, were
directors of the Bank have been separately disclosed in the
corporate governance
• The Committees of Board of Directors along with
their terms of reference/charter have been separately disclosed in the corporate governance
• The number of Board and committees’ meetings held during the year and
attendance by each Director has been separately disclosed in the corporate governance
• Details of directors’ training programs are given in the statement of compliance with
the code of corporate governance.
• The remuneration policy of non-executive directors, including independent directors,
as approved by the Shareholders of the Bank is disclosed in the corporate governance
section of this annual report.
• Detail of remuneration of Chairman, President/CEO and non-executive directors is
disclosed in note 40 of the unconsolidated financial statements.
• The principal risks and uncertainties facing the Bank have been disclosed separately in
this Annual Report.
Corporate Social Responsibility (CSR)
The Board acknowledges its rightful duty to operate as a highly socially responsible bank.
The activities undertaken by the Bank with regard to CSR are disclosed in the
Corporate Sustainability section of this annual report.
External Auditors
The retiring Auditors, M/s A. F. Ferguson & Co., Chartered Accountants, being
eligible for the next term have offered themselves for reappointment. Therefore,
upon recommendation of the Audit Committee, the Board recommends appointment
of M/s A. F. Ferguson & Co., Chartered Accountants, as the statutory auditors of the
Bank for the financial year 2022 in the forthcoming Annual General Meeting.
Appreciation and Acknowledgements
The Board of Directors of MCB Bank Limited would like to thank the Government of
Pakistan, the State Bank of Pakistan, the Securities & Exchange Commission
of Pakistan and other regulatory bodies for their continued support, all shareholders and
customers of the Bank for their trust, and our employees for their continuous
dedication and commitment.
For and on behalf of the Board of Directors,
Shoaib Mumtaz Shahzad Hussain
President & CEO Director
MCB Bank Limited MCB Bank Limited
February 10, 2022
Groups Review
Wholesale Banking Group
The Group remained focused on all business areas during 2021
Corporate Banking, Investment Banking and Transaction Banking
contributed for another profitable year. The Corporate Portfolio grew
exponentially through booking of a number of new loans to surpass
previous levels. Bottom line contribution for the Bank was through
increased fee income generation and a well-managed loan book; with
no additional charge on the portfolio on net basis during 2021.
In 2021, several strategies were adopted, including the setting of
group limits for large corporates, limit review exercise, and Risk Asset
Acceptance Criteria (RAAC) to strengthen our credit underwriting
standards and risk appetite.
The CFIBG team managed to use its relationship and resources
to actively cross-sell various products including construction finance, as
well as consumer products such as auto, home, personal loan to
employees of Corporate Customers.
The Bank’s Investment Banking team managed to successfully
close several transactions during the year and posted highest fee-based
revenue in the last four years. The team successfully advised and
arranged one of the largest Syndicated Term Finance Facility for Pak
Telecom Mobile Ltd. of PKR 21 Billion. In addition, various expansion
and BMR projects were undertaken through SBP TERF and LTFF
schemes. Investment Banking of MCB also received international
recognition through the following awards:
The Asset Triple A Sustainable Capital Markets Country &
Regional Awards:
o Best loan adviser in South Asian Region- 2021
o Best Structured Finance Deal in South Asian Region for Pakistan
Mobile Communications Syndicated Term Finance Facility of PKR 50
billion- 2021
o Best equity-Linked Deal- Engro Polymer & Chemicals Limited
US$19 million preference shares- 2020
The Cash Management business continues to remain one of the leading
cash management solution providers in the country and with its growth
momentum surpassed annual volume milestone of PKR 3 trillion in
2021. This was realized through focus on Initial Public Offerings (IPO),
Right issues, E-Dividends and domestic payments’ modules to help meet
the requirements of top Corporations across the country.
During the year, Transaction Baking Division of MCB attracted
home remittance inflows of USD 3.527 billion to further consolidate its
position as an important contributor
to the national cause of improving flow of remittances
through banking channels.
In 2021, Strategic Acquisitions and Investments Division (SAID) evaluated
different acquisition and investment opportunities for the Bank. The Division
strives to explore internal and external options for the Bank’s strategic
growth. Globally, the banking industry continues to face novel challenges
following rise of Fintechs. Technological advancements and industrial
transformations of this kind are likely to flow into Pakistan. In view of
this imminent disruptive phase, SAID explored options within the Fintech
space and is in the process of conducting due diligence to better understand the
intricacies within the space with the intent to make decisions in the best
interest of the Bank.
The business teams continue to remain geared up for growth strategy in
2022.
International Banking Group
MCB Bank has strategic footprints in the international arena and is
working towards further expanding its global reach. The Bank has direct
presence in Sri Lanka, Bahrain, and United Arab Emirates through a
network of branches bringing its strengths and quality of service to its
international customers.
Sri Lanka Operations:
Going back a quarter of a century, MCB bank has been serving the people
of Sri Lanka. The bank established its operations in Sri Lanka in 1994 as a
single branch with main focus on trade finance related business. Since
then the bank has been growing steadily and at present caters to a variety of
segments, such as, Corporate, SME, Retail and Islamic banking. The bank
prides its self as holding the second-largest branch network amongst
foreign banks in the Sri Lanka.
Despite a sluggish business environment which prevailed due to Covid-19
pandemic, MCB Sri Lanka remained profitable for the year 2021. As a
testimony to its prudent policies the bank was able to secure a local rating
[SL] A+ (stable) by ICRA Lanka Limited, which point towards the prudent
capital, risk and liquidity management of the bank.
Valuing its commitment to its stakeholders, the Bank undertook all
relevant health and safety measures to ensure the well-being of its staff
and customers while ensuring its corporate objectives were met. During the
year MCB Sri Lanka took steps to increase the digitalization of its services by
launching Mobile Banking Application for individual customers and initiating
the process to upgrade its Virtual Banking platform. This will enable the
customers to carry-out banking transactions without their physical
presence at branches.
During the year several strategic decisions have been taken to
effectively manage the operating cost and mitigate credit and
liquidity risk of the balance sheet. Further, Sri Lanka operations have
been able to improve its CASA and AD Ratio to be in line with the
bank’s strategic objective.
UAE Operations:
MCB Bank commenced its operations in Dubai, UAE as a
wholesale banking branch in 2015.
The franchise’s strategy of diversifying its portfolio on both the
liability and asset front has resulted in a dynamic portfolio with an ability
to adjust as per market challenges. By focusing on expansion in the
Financial Institutions, and trade risk the branch was able to achieve its
growth targets. The branch has been able to generate quality returns,
by increasing its productivity.
Despite the economic backdrop, the Branch was able to maintain its
deposits base in 2021, through diversification of the liability
portfolio, while maintaining a CASA base of over 84%.
MCB UAE stood firm in its commitment to expanding its outreach
and in achieving its objectives while safeguarding the interest of our
shareholders through prudent policy and by relying on the Bank’s core
strengths.
Bahrain Operations:
Mobilizing organic liquidity was a key focus for MCB- Bahrain
during the year. By the year-end, all assets fund through organic
liquidity. MCB Bahrain specifically designed a product for its
customers to enhance their return on equity by leveraging their
investment in approved fixed income products. Under the
approved risk and reward, framework gaps are minimal while
maximizing profits. It formulated a more natural balance sheet for
the franchise.
The franchise aims to develop and implement several policies and
procedures to cover ever-evolving regulations. MCB Bahrain also
remained focused on AML/ CFT and compliance areas. Gap
assessments regarding internal policies and procedures were
conducted and later approved for implementation. Creating a safe
environment for its customers and employees - MCB Bahrain
maintained strong customer and employee safety protocols during the
pandemic.
Retail Banking Group
Retail Banking Group continues to be the face and core
bloodline of the bank, strategically focused to provide a
commendable mix of products and services to the length
and breadth of the country. RBG with its 1,400+ locations, 9,700+ employees serves
all economic geographies, customer and business segments. Key considerations in 2021
remained on financial inclusion, digital innovation, process reengineering, sales
and service enrichment while maximizing stakeholders’ interests.
RBG marked 2021 as another year of sustained historical growth, stellar financial
results and accomplishment of major business objectives. With its passion,
commitment and determination, the team generated highest ever current deposit that
helped in achieving exceptional financial results during unprecedented
macroeconomic challenges like inflation, volatile parity rates, upsurge in
monetary policy, enhanced regulatory requirements as well as environmental challenges
where multiple surges/ restriction related to COVID-19 were observed.
Team RBG has established themselves as a core contributor in all value streams.
2021 was another successful year in terms of growth in core deposit, fee-based
income, cross sell as well as considerable increment in advances portfolio without
compromising on credit quality. Through a smart mix of innovative products, process re-
engineering initiatives, sales support programs, service management activities, robust
governance & untiring staff efforts; “The Best Selling Machine” has enabled the bank to
celebrate another winning year. In order to ensure superior services to our customers, apart
from inclusivity of all staff member through “Participation from All Initiative”, RBG
continued to strengthen its franchise by adding new branches, relationship & service
managers, operational staff as well as new business function / units during the year.
RBG, being the biggest deposit and revenue contributor to the overall growth of
MCB Bank, has always been instrumental in building “low-cost deposits” with
CASA mix standing at 94.3% in 2021. The best part of this year has been our phenomenal
ever highest growth in Current Deposit, thus contributing 57% of 2021’s total deposits.
Growing fee income from diverse products and branch operations despite
challenging conditions has been exceptional. On-going expense management
including cost rationalization at all business functional levels has played its role in
revenue maximization and profitability of the bank.
Team RBG is at the forefront in delivering all regulator led initiatives. Enhancements
in Roshan Digital Account (RDA) have made the enterprise more beneficial for
overseas Pakistanis. MCB Bank is proud to be one of the leading participating banks of
the initiative and is offering all value- added services digitally. MCB Bank is the only
bank offering RDA in 9 foreign currencies alongside with Pak Rupee. The addition of
Roshan Apna Ghar, Roshan Apni
Car, Roshan Samaaji Khidmat, Roshan Qurbani Service
and many such endeavors opened new corridors for our overseas diaspora.
MCB Bank continuously strives to add more value added services and
investment opportunities in future.
RBG with the collaborative support of other business groups has
gained decent market share in important national socio development
programmes, by facilitating customers under Mera Pakistan Mera
Ghar (MPMG) and Kamyab Jawan Program Schemes. A devoted
RBG team is assisting potential MPMG customers during
their loan processing, identifying suitable properties and in the execution
of purchase of property. Similarly, the team is making its utmost
efforts in transmitting benefits of Kamyab Jawan Program to the
target market. Our Agri financing and SME teams are constantly
involved in identifying potential customers and facilitating loan
disbursements.
In order to ensure customer convenience, excellence and
competitiveness, selected liability products were further improved. MCB
Smart Business Account was one such product, perfectly suited for
business entities and entrepreneurs with the addition of various
new benefits have shown traction. Moreover, the need of payroll
proposition has evolved in recent years; to address prevalent
employee and employer considerations, RBG has further
strengthened ‘MCB Salary Club’ which has been appreciated by our
existing institutional clients and has helped the bank in soliciting new
payroll mandates.
RBG continued to enrich customer experience and fulfill ever
evolving needs of its customers through use of latest technological
advancements. Introduction of state of the art / new age online banking
services, expansion of ATM network as well as introduction of digital
account opening services are few examples
Disciplined implementation of policies and procedures has helped in
ensuring compliance and control culture, further strengthened
operational efficiencies and overall governance. Complete focus on
‘Operation Excellence’ assisted in achieving improved sales, high quality
service standards and enhanced levels of internal control. In
continuation of branch network optimization strategy, a number of
branches were merged, relocated or closed. While under the annual
network expansion plan 10 new branches were opened during the year.
RBG has established itself as a reliable contributor in terms
of deposit and advances growth, revenue maximization and a
facilitator of best in class services for our customers. We are confident
that with determination, passion and capability to adapt ever-changing
conditions, we will continue to grow even better in the months ahead.
The growth of core deposit alongside of increase in assets
to maintain stable loan to deposit ratio will be a primary objective in 2022.
Facilitation of overseas Pakistanis under the RDA initiative, MPMG,
Kamyab Jawan and other national financial inclusion / support
initiatives will remain key focus areas. Channelizing of Home Remittances,
soliciting NTBs, retention / deepening of existing deposits, on-boarding
Cash Management, Payroll & Collection Mandates will also remain our
business drivers.
Our prime challenge remains maintaining and building upon the
momentum we have created & improved during the past few years
while remaining cognizant to environmental and socio-economic situation.
With over 1,400+ branches network, catering to more than 8 million accounts
of valued customers, Team RBG, with its zeal, passion and commitment
followed by vigorous execution plan, is geared up to outperform in all
deliverables and prepared to achieve greater results.
Special Assets Management (SAM)
During 2021, SAM Divisions recorded cumulative recovery figure of Rs.
2.67 Billion (2020: Rs. 2.41 Billion) and registered a growth of 11% over
the corresponding year, despite pandemic and several other grave
challenges. SAM Retail & Consumer Division contributed Rs. 1.27
Billion and surpassed the last year recovery figure by 25% and registered a
handsome recovery yield of 14%. SAM Corporate & Commercial Division
achieved Rs. 1.4 Billion and successfully restructured defaulted credits
amounting to Rs. 5.2 Billion (2020: Rs. 1.6 Billion) by resolving various big
ticket defaults during this year. SAM’s settlement coverage also
exhibited significant improvement as recoveries were spread over 6,316
cases as compared to 4,360 cases in the preceding year. Besides, recovery from
written-off portfolio also witnessed significant growth of 89% as compared
to last year (Rs. 176 Million vs. Rs.
93 Million). This feat has been achieved with untiring
dedication, hard work and efforts of highly self-motivated and focused SAM
team.
Mindful of enduring its legacy of working in an environment, acquiescent
with the applicable laws & regulations and policies of the Bank; SAM
not only succeeded in placing outstanding recovery numbers on the Board
but also further improved its compliance to internal controls. Resultantly,
all segments of SAM Divisions achieved highest Internal Audit Rating i.e.
Satisfactory/A during the period under review.
Lastly, it is pertinent to mention that owing to visible dismal spiral of Covid-19
pandemic coupled with micro & macroeconomic adversities, infected
portfolio of banking sector has witnessed constant upsurge. Therefore, it is
eminent that SAM continues its focus on remedial management to realize
desired objectives of the sustained growth in an
efficient & effective manner notwithstanding the fact that
worsening economic and political milieu will again pose a greater degree
of challenge during 2022.
Consumer Banking Group
In 2021, MCB Bank aligned the consumer and digital banking
businesses to deliver full blown digital banking of the future on the “built
to last” principle. The core objectives of this alignment were, simpler
and faster customer delivery, leaner and smarter orgs, and de-
centralized / digital processes – all in line with bank of the future. Thus
2021 saw intense focus on two main drivers of customer centricity,
product design and customer communication & dialogue enrichment
by the business lines.
Wealth Management and Privilege Banking:
Bancassurance business continued a steady upward growth trajectory,
started over the past years. In 2021, the business regained
momentum after a pandemic- challenged 2020, and ended with a strong
performance. Total sales volume in 2021 crossed PKR 3.0 billion.
2nd highest fresh premium volume since launch of the business in
2008, which was PKR 3.15 billion in 2019. This means that MCB is
now at over 95% of our pre- pandemic peak, a stronger recovery than
other industry player. Also putting MCB in a pole position to deliver new
performance benchmarks in 2022.
Investment Services posted impressive numbers in 2021 and
outperformed by generating business of PKR 8.03 billion.
Improvement over the previous year was even more dramatic, with
volumes growing by 40% compared to 2020 (ending at PKR 5.7 billion).
On the Privilege Banking, the business grew by 13.75%
- PKR 24,186 million in 2021 versus PKR 21,263 million in 2020.
Growth in current account book within Privilege was 32% over 2020,
i.e. PKR 909 million - PKR 3,749 million in 2021 versus PKR 2,840
million in 2020. This reflects the potential of high net worth
banking segment in the market, and a high potential to scale
contribution to income and profitability from this business line.
Consumer Lending:
For past two years Consumer Lending has been earmarked as
MCB’s engine for growth. Bank set out to replicate its success on the
auto lending product line to rest of the consumer assets suite
including, home loans, credit cards, and personal loans. In this spirit, the
business line exhibited a significant growth of 32% in its book size
year on year - closing at PKR 38.5 Billion. The business now serves
over 140,000 customers across lending products.
During the H1, 2021, market’s economic activity with low
interest rates remained favorable to consumer assets. However, in the latter part of
the year the business experienced pressure due to hike in interest rates and regulatory
tightening to curb large ticket and imported vehicles auto financing.
In line with SBP’s initiative to boost foreign currency inflow by providing
investment opportunities to NRP’s, the consumer lending business launched two new
products
i.e. Roshan Apni Car and Roshan Apna Ghar. In addition, the business also
spearheaded government’s initiative to provide low cost and affordable housing to the
masses under Mera Pakistan Mera Ghar scheme. The business booked 576 loans
acquiring PKR 2 Billion in new assets under the program.
The business continued to form strategic alliances with Auto Manufacturers (OEMs)
to provide value-added services to our auto customers and also offered high end tactical
and regular discounts campaigns to its credit card customers. Lending businesses namely;
Auto, home loan and credit card went on to register their best performances in terms of
units, spend and volumes respectively.
Capital Market
The market started the year on a positive note, but worsening macros dampened the
sentiments in the second half. As the world recovered from the pandemic, recovery in
demand outpaced supply, leading to a boom in commodity prices. Resultantly,
Pakistan faced pressure on its external account with sharp devaluation of local
currency, depleting reserves, rising inflation and high interest rates. To make
matters worse for the market, MSCI announced reclassification of Pakistan from
Emerging Market to Frontier Market (FM). Pakistan’s downgrade to FM Index further
aggravated foreign selling, with November 21 witnessing net foreign selling of $141
million. MCB’s Capital Market Division managed to outperform the market in
these turbulent times. Going forward, international commodity prices will be
critical in determining the overall performance of the macroeconomic indicators of
the country, and, hence, direction of the market.
Treasury and FX Group
The Treasury & FX Group (TFXG) has a long history of successfully navigating
the volatility in the market, while optimizing the risk return to its portfolio and this year
was no exception. Despite the initial wave of hysteria regarding growth, the course
correction and resultant volatility, and in the latter half of the year on key rates and
economic direction the Group managed to successfully face the headwinds,
and efficiently navigated through these unprecedented circumstances. The
Group surpassed its performance targets for the year and made significant
contribution to the Bank’s mark-up and non-mark-up
revenue this year.
To recall, Pakistan’s economy rebounded strongly after taking a hard-
hit in 2020 caused by the COVID-19 pandemic; the economy
registered a 5.57% real GDP growth in the fiscal year 2021.
However, pressures related to inflation and external account also
started to emerge, resulting in widening of the current account deficit
by the latter part of the year. In the final months of the year, spread
of Omicron variant initiated a new wave of uncertainty in the markets.
The unforeseen developments in inflation and current account
balance caused the State Bank of Pakistan to raise its policy rate
cumulatively by 275bps to 9.75% in the year under review. MCB Bank’s
Treasury took proactive measures to close the year with significant
increase the Bank’s revenue.
On the external front, the imports grew faster than the exports,
creating downward pressures on PKR against USD. PKR
depreciated against the USD by 10.3% in the year 2021. MCB
Bank’s Treasury was ahead of the curve and efficiently managed
this FX volatility and generated record profits in exchange income.
Our sales team remained committed to and fully engaged with our
clientele to advise them during the period always keeping them abreast of
the economic developments.
As an Authorized Derivatives Dealer, our derivatives team engaged with
suitable customers having FX or interest rate exposures to provide
solutions using derivative products. This led to an increase in customer
awareness with respect to the use of derivatives to manage the
identified market risks.
Through the financial and economic developments in 2021, MCB
Treasury Research Desk worked to analyze the impact of changing market
dynamics, and so, assisted the Bank in its decision-making. The Research
Desk timely prepared economic forecasts of interest rates,
inflation, foreign exchange rates, and other macroeconomic
variables and shared the findings with the Bank’s internal and
external stakeholders. The Research Desk published the MCB Purchasing
Managers’ Index (MCB PMI) on a bi-monthly basis to help gauge the
developments in the financial markets and the growth in the
manufacturing sector of the economy.
Information Technology Group
Information Technology has transformed the banking industry
worldwide for the better and has provided us with the necessary tools
to manage the challenges of an ever growing economy. The integration of
technology has been the cornerstone of recent financial sector
reforms across industry aimed at increasing the productivity and
efficiency of financial operations, strengthening the
banking sector to meet high consumer expectations
and to secure a leadership position amongst peers. However, the most
challenging part of the ever changing world of ‘Technology’ is to neutralize
the impact of obsolescence and advancements at a strategic level without
compromising availability, security and reliability of the ‘Data and
Information’.
In MCB Bank, the entire management and the board is committed to enrich
Information Technology infrastructure at the enterprise level which is
clearly evident from the investments the bank chose to make in the recent
past. We are committed in our mission “To be a leading bank in the Information
Technology sphere, with our focus on digital transformation to enhance
customer experience”. The multi-pronged approach comprises of but is not
limited to one of the largest footprint of online branches with a centralized core
and associated banking systems, strategic acceptance systems at both
eCommerce and POS levels, robust Internet Banking and Mobile Banking
platforms, revolutionary product and services offered through world class
Digital Lounges, highly efficient & scalable Contact Centers, one of its
kind state-of-the- art Enterprise Data network, established International
footprint, proactive controls to combat money laundering and frauds,
interoperability with other financial entities and Branchless Banking
solutions to facilitate the customers irrespective of their location.
Information Technology Group (ITG) at MCB Bank is comprised of a
team consisting of thorough professionals having a proven track record of
project delivery and IT infrastructure management at an enterprise. The
components of the organizational structure of ITG are included with
IT Enterprise Infrastructure, IT Operations, IT Software Solutions, IT
Support Services, IT Service Management, IT Information Security, IT
Business Technology, IT Compliance and Internal Control, IT
Business Continuity, IT Project Management, IT Procurement and IT
Financial Services who are committed to servicing it’s consumers both
internally and externally 24/7. Recently ITG successfully streamlined
existing operations across board and recorded the highest ever uptime of core
banking along with affiliated applications throughout the year.
Nevertheless, the availability of Data Centers and the back-end systems
along with all necessary services were remarkably remained at five-
nines. In addition to operational achievements by ITG, new
benchmarks were achieved to comply with the highlighted
recommendations by external and internal audit committees and the SBP.
ITG had also closely monitored Bank wide projects and had driven
related technology functions with a motive to accomplish the assigned
tasks within the agreed timelines. Close coordination and liaison with
working
groups and vendor relationship management are the key
factors in above achievements.
Looking forward to 2022, IT Group is more committed
towards:
• Dynamic Customer Experience with Cross- TouchPoints
• Revolutionizing payments & Driving Financial
Inclusion
• Agile & Goal Oriented Product Service Road Map
Delivery
• Payment Card Industry : Compliance : PCI DSS
Certification
• Improving Information & Cyber Security ecosystem
Apart from above commitments, IT Group shall continue to empower
the staff with the requisite trainings and job enrichment plans to impart
motivation and job success factors.
Digital Banking
The pandemic established a full blown case for a digital
transformation in banking. In 2021, as the world started reopening,
new avenues for digital innovation and experimentation emerged.
MCB jumped to avail this opportunity by developing customer-
centric design
– encapsulating the needs & wants of our customers. Launch of
MCB Live – Bank’s new mobile and internet banking was a true
manifestation of it.
Debit Card
MCB’s diverse debit card portfolio comprises card variants by two
international schemes, Visa and Mastercard, alongside one domestic
payment scheme, Paypak. Staying the course on breaking previous
records, MCB Bank accomplished highest ever card activations and
issuance growth of 38% year on year. The total retail spend on Debit
cards increased by 45% and total e-Commerce spend saw a tenfold
increase by 135% year on year.
The Bank executed multiple transformative projects including
near-field-communication or contactless technology cards on
international payment scheme cards and enhanced transaction security
via 3D-Secure technology on Visa portfolio – thus delivering digital
transactions growth and improved customer trust and confidence.
In 2021 MCB Bank rejuvenated discounts and promotions proposition to
its cardholders, offering exciting discounts on lifestyle products and
round-the-clock services by enabling 1,450+ ATMs and POS
networks across the country. A new and improved browsing experience
was launched for MCB debit card customers by transforming the
discounts section to enable the customers to filter
various special offers and alliances according to category,
country, city, discount percentage.
Building upon SBP’s vision of promoting Pakistan’s domestic payment
scheme; Paypak Gold Debit Card was launched in 2021 giving customers a variety of
card variants to choose from as per their unique needs.
To further facilitate Roshan Digital Account (RDA) customers, the debit card
application process has been revamped, enabling digitization, customers can submit
paperless digital applications for both basic & supplementary card from anywhere
around at world at ease.
Omni Channel Digital Experience
2021 was a year of mega transformational projects. The bank upgraded to a world class
Oracle-based platform MCB Live – an Omni-channel digital banking platform
equipped with advanced mobile and online banking features.
MCB Live provides our customers, an easy and secure way to transfer money, carry out
balance inquiries, check mini-statements, buy top-ups, pay bills, and much more from the
comfort of their homes 24/7/365. The new digital banking application facilitates its
customers to manage and control their bank accounts, debit & credit cards;
whenever and wherever they want. The launch of MCB Live marks the start of a new
digital era of MCB Bank.
Automated Teller Machines
ATM network witnessed a firm progression in terms of reach, reliability, and
transactional volume. MCB’s network stands at 1,450+ ATMs one of the largest national
ATM networks spread across 500+ cities generating over 57 million transactions. MCB
Bank has an ATM uptime rate of 98.68%, ensured by the presence of ATM monitoring
teams working 24/7.
Merchant Acquiring
Expanding its payment acceptance footprint in the market, MCB Bank has now
deployed more than 9,000 POS terminals at multiple locations across the country that
processed over PKR 27 billion volume in 2021. Moreover, certifications of 3 different
POS terminal models with 5 payment schemes were also enabled.
MCB eGate equips online businesses to accept payments reliably and securely
from both credit and debit cards. During the year, approximately PKR 8 billion e-
commerce transaction volume was processed through eGate. The online card
acquisition footprint has grown and continues to grow exponentially worldwide. MCB
Bank has an action plan to continue developing in the e-commerce space in 2022.
Branchless Banking
MCB Lite – our Branchless Banking Wallet offers customers ability to
handle their financial transactions and payments in an efficient and
real time manner. In 2021, MCB Lite undertook a substantial
regulatory project with the launch of “Asaan Mobile Account” (AMA)
Scheme to increase financial inclusion through enhanced access
and usage of digital financial services. AMA scheme will facilitate
the less privileged and marginalized sections of the society towards
adopting digital payments even without internet and smartphones access
and also transform banks to shift their focus from ‘Over-the-Counter’
(OTC) services to branchless banking (BB) accounts. MCB Branchless
Banking also saw addition of reputable organizations on its funds/salary
disbursement portfolio. MCB Lite is all set to explore new avenues
while embracing the Digital revolution in 2022.
Operations Group
In its aspiration towards operational excellence, Operations Group has
retained agility and flexibility in operational processes, discipline in
internal controls, and dedicated focus on regulatory compliance, while
continuing to be a key enabler of business growth and digital innovations
for the Bank.
While the world continues to navigate the new normal in the
backdrop of COVID-19, Operations Group has emerged stronger
and better through consistent efforts and optimized utilization of existing
organizational, human and physical capacity. Simultaneously, the group
has focused on tapping new opportunities for transformation and
automation. OPG continued to create value and capability to
meet the evolving needs of our external customers and frontend staff
by prioritizing business growth and service efficiencies through
automating and centralizing existing operational processes,
strengthening controls and facilitating optimal service delivery.
Business growth and controls are two of the most imperative
objectives for attaining long term goals associated with
sustainable competitiveness and leadership in the finance industry,
and Operations Group has kept these objectives in mind when
optimizing processes, systems and operational capacity through
operational excellence and lean process management. Likewise, the
group’s control-centric approach was pivotal in balancing regulatory
requirements with process review practices. Projects that were
predicated on process improvement include revamp of account
activation process with special facilitation for overseas customers, RTGS
Bulk Payment upload facility for corporate clients and introduction of
enriched stage based SMS alerts for debit card delivery. Further, in order to
improve account opening process, a detailed exercise has been conducted
to improve Turn Around Time and customer onboarding
journey. Functional support was also extended towards
design ideation and process formulation for MCB Live – Bank’s digital
platform. A comprehensive study was also conducted for MCB Call Centre in
which improvement opportunities in processes and systems were
identified besides capacity enhancement.
Keeping system and process ingenuity at its heart, Operations Group
pushed ahead with its vision of enriching customer experience by scaling
digitization efforts to new heights. Consequently, functional support was
provided in various projects having bank-wide significance including
Image-based Clearing, Data Cleansing, automation of Personal Student Loan
product, centralization of Asaan Accounts, Centralization of FCY Term
Deposit with newly designed system mechanism, introduction of
straight-through processing for RTGS transaction queries and advices
module, centralization of Single Treasury Accounts, automation of
pensioner account monitoring and automation of account certificates
required by customers. Another landmark project was development of in-
house deposit/withdrawal screen having added controls, more flexibility
and automated deduction of charges.
Maintaining steady progress towards cost optimization, various initiatives
were undertaken for rationalizing administrative cost including a systematic
effort to bring customers towards e-statement.
On the people management front, Operations Group has remained
cognizant of the effect of social distancing on the ability to have physical
staff training sessions and workshops. Accordingly, digital channels have
been utilized to the maximum and significant number of staff trainings
have been conducted on data cleansing, business continuity and Green
Banking. Meanwhile, staff participation in trainings of vital significance
has also been ensured for Group’s own staff.
Sustainability and continuity have also been at the back of the Operations
Group’s vision for Green Banking and Business Continuity. Therefore, the
Group preserved the integrity of the Green Banking vision by
strengthening its partnership with environmental bodies and non-profit
organizations in the year 2021 through the maintenance and achievement of an
adequate surveillance audit score, and by scaling up dry waste recycling
practices. Plantation drive was conducted with zeal and enthusiasm and
various Business Continuity initiatives were met through effective execution of
existing contingency planning and crisis management practices. In addition,
Own Impact Reduction pilot initiative was implemented with an aim to scale it
up to achieve carbon footprint reduction goal.
For 2022, Operations Group sees plenty of opportunities
that are compelling with promising business recoveries and
accelerated digital adoptions across the ecosystem. Operations Group is
excited about the prospects of the year 2022 and will continue to
strike the right balance between the opportunities and risks that come
along. Last year’s challenges made us all stronger, giving Operations
Group too an opportunity to learn and grow. The group is
committed to further capitalize on this learning and resilience by
finding new ways to prioritize digitization and centralization
endeavors while strengthening cost discipline and proactive
engagements with stakeholders to improve process centralization and
further automate manual products and processes.
Compliance and Controls Group
The Compliance landscape and environment is becoming increasingly
complex and challenging owing to enhanced Global focus on risks
associated with Money laundering, Terrorist Financing,
Proliferation Financing and direct exposure to embargoed
jurisdictions. Consequently the Compliance function is continuously
striving to keep up with these challenges through a well-
integrated and robust risk mitigation framework in the aforesaid areas
of our banking operations. As heightened focus continues on
tackling these issues, CCG is committed towards investing more
in resources, processes and technologies to combat these and other risk
areas.
CCG aims to ensure the highest standards of AML/ CFT/CPF
and sanction risk compliance, which requires management and
employees to adhere to these standards by preventing use of Bank’s
delivery channels, products and services for money laundering and
terrorist financing. The Group provides a structural base to
enable all concerned stakeholders to monitor out of pattern/ unusual
transactions to detect possible Money Laundering/ Terrorism
Financing /Proliferation Financing activities through Transaction
Monitoring Solution (FCCM). It also leads the Management Committee
on AML/CFT/CPF for oversight of AML/CFT/CPF & Sanctioned
compliance with respect to relevant regulations, policies and procedures
and steering of various AML/CFT/CPF initiatives in the Bank, to
mitigate the risk of such activities, for both domestic and
overseas operations. Furthermore, CCG is also challenging all
internal stakeholders to strengthen Bank’s monitors with regards to
AML/CFT/CPF & direct exposure to embargoed jurisdictions risk
emanating from Trade related business activities.
Highlights of 2021 include successful completion of project on
updation of Transaction Monitoring System, implementation of a
new Risk Profiling System and Trade Based Money Laundering
System and strengthening of CFT desk by inclusion of Regulatory
Reviews under its ambit for provision of feedback on high risk
accounts/
transactions from ML/ TF/ PF perspective as required
under the updated AML/CFT/CPF Regulations, CCG developed a structured model
of Internal Risk Assessment to continuously assess its inherent and residual Money
Laundering, Terrorism Financing & Proliferation Financing risk based on threats and
vulnerabilities. This activity also enables the bank to explore opportunities and strengthen
its systems and controls to mitigate the residual risk.
CCG also oversees adherence to the regulatory requirements through
onsite reviews, with specific emphasis on Anti-Money Laundering (AML) /
Combatting the Financing of Terrorism (CFT)/ Countering Proliferation Financing (CPF).
In order to remain abreast with regulatory requirements, CCG has pursued
implementation of various dimensions of Compliance Risk Management
(CRM) Guidelines issued by the regulator. In this perspective, CCG aims to
inculcate a compliance culture in the bank wherein ongoing regulatory requirements
and industry challenges can be managed effectively in all jurisdictions of MCB
operations.
CCG ensures a professionally cordial working relationship with State Bank of
Pakistan (SBP), Law Enforcement Agencies and other regulatory bodies in addition
to coordination of SBP’s Inspections.
The Fraud Risk Management Department (FRMD) is now completely consolidated on
Pan Pakistan basis within FRMD. In addition to the management of Branch related fraud
cases, FRMD started Preliminary Investigations of Consumer & Digital banking
related frauds, hence adopting a more focused approach towards managing Fraud
risk. Further, Implementation of ‘Internal Eye’, a tool for reviewing and monitoring of
transactions associated with customers’ as well as employees’ accounts, through various
predefined system based potential scenarios that will detect and manage the
fraud risk encountered by the bank through timely highlighting suspicious and
fraudulent activities. In addition, FRMD is leading Fraud Risk Assessment Exercise Bank
wide with an objective to build new controls or reinforcement of existing controls in
order to counter the potential frauds and safeguard Bank’s interest. Moreover, FRMD
also spearheads the resolution of regulatory observations through a cross functional
management committee. In compliance with the Regulatory requirements of Employee
Due Diligence, FRMD has designed Know Your Employee (KYE) Program,
whereby, it also conducts KYE review exercise on quarterly basis by reviewing credentials
of newly hired regular employees.
Our Service Quality (SQ) function, which is also part of CCG,
continues its enhanced focus and rigor around customer
experience through senior management oversight and
continuous internal stakeholder engagement. Bank follows a multi-pronged
approach to assess the quality of service standards for its customers.
These measures include ongoing evaluation of our branch look & feel,
speed of our product and service delivery and efficiency of our
digital channels. The bank also seeks customer feedback on the same
through its in-house Voice of Customer team. Weak areas identified
through these initiatives are then worked upon to improve customer
experience.
Fair treatment of customers continued to remain a priority agenda item for
the bank throughout 2021. In addition to the existing training module
on “Fair Treatment of Customers”, an e-learning program took place
in 2021 for frontline staff dealing with the customers in order to re-iterate
the roles and responsibilities of bank’s staff in this regard. This training
module will be gaining further momentum during 2022.
Service Quality function is also the custodian of customers’
grievance handling and works in collaboration with all businesses /
functions of the bank responsible for acknowledging, investigating,
tracking, escalating and resolving customer complaints within
specified turnaround times.
Audit and Risk Assets Review Group
Internal audit function plays critical role in the overall risk and
control environment of any organization. The function provides
assurance that is vital for the Board and management in assessing
overall strength of an organization’s control environment.
Furthermore this function also adds value to the aforesaid control
environment by virtue of its consultative role.
Audit & Risk Assets Review (Audit & RAR) Group is responsible
for the internal audit function within MCB Bank Limited. Chief
Internal Auditor functionally reports to the Board’s Audit Committee
and administratively to the President. The Group conducts
audits/reviews of various areas of the Bank under the globally
recognized Risk Based Auditing Methodology whilst complying with the
requirements of the International Standards for the Professional
Practice of Internal Auditing issued by the Institute of Internal
Auditors (USA) {IIA}.
Audit & RAR Group continued to perform its role effectively on both
the assurance and consultative fronts during 2021. The Group
evaluated efficacy of Bank’s control systems by enhancing visibility
of the management and the Board Audit Committee on the risk
management and control related matters of the Bank (for Bank’s
domestic and overseas operations). The Group also highlighted
areas for improvement and worked closely with the management
through regular engagement as
well as consistent follow-up, monitoring and guidance
towards resolution of significant issues. Staff training and development
remained a focus area for the Group which helped in enabling the internal
audit teams in performance of their duties objectively as well as with
professional due care.
With the zeal and commitment to play an effective role in the Bank’s
endeavor for continuous improvement, Audit & RAR Group will
persevere for further strengthening of its resources, processes and
Framework in 2022.
Legal Affairs Group
The mission of the Legal Affairs Group is to further the strategic
goals and to protect and preserve the legal, ethical and financial integrity
and the reputation of MCB Bank. This is accomplished by providing
strategic legal advice on contentious and non-contentious matters, thereby
ensuring that businesses conduct their activities in accordance with applicable
laws and bye laws consistent with the mission, vision, and values of the
MCB Bank. Legal compliance is the process or procedure to ensure that an
organization follows relevant laws, regulations and business rules.
Legal Affairs Group comprises of two departments.
• Legal Affairs Department - Advisory
• Litigation Department
Legal Affairs Department – Advisory
The object of Legal Affairs Department – Advisory is to oversee the
identified legal issues in all segments of business and their interrelation
with, including marketing, sales, distribution, credit, finance, human
resources, as well as corporate governance and business policy. This includes
but is not limited to consultancy issues and adherence of processes
for collateralization of finances. In this context, the Advisory
Department analyses and reviews credits’ security documentation of all
segments of the Bank, like Corporate, Commercial, Retail and Consumer
Banking and provide advice on perfection of documentation to secure Bank’s
interest.
At the helms of the affairs, diversity of work is exhaustive and apart from the
major chunk of advice on securitization of Collaterals, it also includes
review of all sorts of Agreements (Finance Agreements, Service Agreements,
IT Agreements, Distributions Agreements, Non-disclosure Agreements,
Product Agreements, Lease Agreements, E-Commerce Agreements
etc.), Bank Guarantees, Advance Payment Guarantees,
Mobilization Advance Payment Guarantees, Foreign Bank Guarantees,
Financial Guarantees, LCs / Standby LCs, review of Product Manuals
and their processes; SLAs are framed and transformed as per vendor’s
services across the board.
Corporate opinions are drafted and customer’s
relationship segments are assisted by review on the status of Corporate
bodies, Partnership, Trust, Companies, funds etc. and Foreign Currency
matters.
Advisory Department is also supportive by its quick advice and crisis
management for queries by law enforcement agencies and public
sector financial organizations like FIA/NAB, Anti-Narcotics,
Police, Anti-Corruption, NAB, Customs /Income Tax /Sales Tax
Departments/FBR etc.
More recently Advisory has also been actively engaged with SBP &
PBA with regards to development of various upcoming laws and
their amendments. This includes pragmatically reviewing and
providing feedback/opinion on upcoming laws and their amendment with
a view to secure the future interest of our business.
By standardizing different banking documents, the Legal Affairs Group
has helped to introduce symmetry of documentation at all levels.
Standardized templates have been uploaded on MCB Portal. Further,
newly updated templates are uploaded and shared /exchanged with
relevant business for implementation as when there is any amendment in
relevant law/regulations etc.
During 2021, around 22,305 Opinions/Vettings were issued on
collateral, security documents and allied legal issues raised by
Business/Field, therefore advisory department has contributed in cost
saving worth Millions of Rupees.
Litigation Department
The Litigation Department in coordination with businesses,
oversees and handles bank wide litigation of different groups
working within Bank and other litigation related proceedings
pertaining to its customers or employees; Enlists Lawyers on panel in
consultation and on the recommendation of relevant business/
Group after conducting a detailed scrutiny via market check
etc.; Assigns cases in consultation and on the recommendation of
relevant business/Group; Negotiates Fee with the assigned lawyers
in the cases assigned to them; Evaluates lawyers and their
performance in cases assigned to them on bi-annual basis through
directly monitoring their performance and on the basis of feedback
received from the businesses and presents the same to LRC (Litigation
Review Committee); Follow ups with businesses and updates
centralized data of court cases on the basis of feedback received
through court coordinators of respective businesses/Groups;
Maintains centralized MIS of Litigation data and disseminates
information in advance regarding fixation of cases to relevant
business groups on daily basis; Reviews drafts of
plaints/Appeals/Applications/FIRs and Settlement/ Rescheduling
Agreements etc.; Renders opinions on
court orders, stay orders, Summons/Warrants etc. as well
as notices received from NAB, FIA & other LEAs.
This broad role encompasses Crisis Management for all segments of business for
contentious and non- contentious matters of litigation and ancillary matters that arise
directly or indirectly due to litigation.
Following initiatives were taken by the Litigation Department during 2021:
• Retrieval/Compilation of Pan Pakistan Litigation
Data/Record & Digitizing/Scanning of the same.
• Since Centralization of litigation expenses in June 2014, complete record with
respect to litigation expenses is being maintained & shared with respective
businesses on periodical basis.
• Development of Shadow Filing System which is in data validation and bugs
removal phase. Once the same will be fully functional/operational, it would enable
litigation department to provide real time updates of court cases and will also have
options for alerts/SMS regarding upcoming hearings & pending cases. It will also help
in generating different reports for review of senior management and onward sharing with
regulator and other departments/institutions.
• As many as four meetings of Litigation Review Committee (LRC) were held
during the year 2021 and in said meetings, twenty four (24) lawyers were enlisted on
Bank’s Approved panel of lawyers.
• The performance of three hundred & three (303) lawyers was evaluated and
discussed during LRC meetings on the basis of feedback received from the relevant
businesses.
• In such meetings, the critical cases as well as recovery suits pending for decree
for two years or more were discussed & the way forward/strategy for their
expeditious disposal was also devised.
• Overseas Litigation was also discussed in LRC Meetings & strategies were
devised for expeditious disposal of pending cases.
• Likewise, the cases where approvals have been accorded but cases have not
been filed were also discussed, wherein the respective businesses briefed the Committee
Members about the reasons for delay in filing of cases and accordingly the
Committee advised the businesses to file the cases at the earliest.
• As many as 805 cases, including recovery suits were filed during 2021
whereas 1038 cases were disposed of/decreed out of the entire pending
Litigation Portfolio as a result of strong follow up with the assigned lawyers which in
turn resulted in substantial recovery of Bank’s NPLs.
• Moreover, with the dismissal of cases, where damages were claimed against the bank,
the bank was able
to secure not only a sizeable amount of money but
reputation of the bank was also safeguarded.
• Similarly, through the criminal litigation, especially in fraud & forgery
incidents, the culprits were brought to book & were compelled to return
the embezzled/ misappropriated amount and make good the bank’s loss.
• A Large number of opinions on different legal matters were rendered in
addition to vetting of all the pleadings (plaints, written statements/PLAs,
Replications, Criminal Complaints and misc. applications) filed
during the year 2021. Besides this, Settlement Agreements to be
executed with the Customers/ Defaulters were also reviewed/vetted.
• As a result of negotiations with the panel lawyers, a hefty amount was
saved on account of professional fee. To strengthen itself, MCB Legal
Affairs Group has shown significant growth in 2021 and is committed
to perform up the curve in future to help the Bank to achieve better results.
Human Resource
MCB Bank follows the philosophy of working as an equal opportunity
employer, in true spirit. The Bank is committed to create a congenial
and efficient work environment in which the employees are assured a
non-discriminatory, transparent, harassment free and respectful atmosphere
regardless of their cast, creed, religion and gender.We believe in hiring
and retaining talent who can contribute towards the achievement of all
defined targets.
The Bank adopts a transparent performance management system
developed on a defined KPI based scorecard for various business
functions. The scorecard helps management define prioritization vis
a vis objectives and setting future goals of its employees. The bank has
instituted a Talent Management program with a view to identify high
potential individuals and to groom them as future leaders.
To enhance the knowledge and skillset of its work force, a number of
trainings were held during the year. Participants from all over the country
were trained through different programs including in-house, ex-house,
mobile, and E-learning training programs. A segment comprising senior
management was engaged through a Management Development Program as
part of the Talent Management Scheme of the Bank.
Security
The Security Division effectively managed to ensure the safety and security
of the Bank’s physical assets during the year, despite numerous challenges.
Based on industry intelligence, feedback of the management and analysis of
the developing law & order situation, our security teams efficiently
managed security arrangements, ensured vigilant monitoring and
supervision of branch security
across Pakistan with their persistent coordinated efforts,
which provided safe and secure environment at branches
and offices and ensured smooth operations of the Bank.
The Bank’s Security Division foiled a number of criminal attempts. It also
provided effective support and assistance to bank staff when flooding
affected operations at a number of branches in Sindh. Regional
Security Officers imparted training to branch staff and security guards in their
respective circles.
MCB Bank branches are equipped with modern security technology and
systems that are operated by adequately skilled staff. During the year a
comprehensive security health check of all branches was carried out,
which helped upgrade the security apparatus.
The branch staff and security teams work synergistically and our Security is
all set to meet any challenge and ensure safety and security at all MCB
premises.
Marketing Division
The Marketing Division is geared towards enhancing the positive image of
the Bank through corporate brand building, promotion of Bank’s product
& services on visible optimized mediums, standardization of corporate &
brand communications, branch merchandizing, CSR and public
relations.
During 2021, Marketing Division launched new TVCs for its Home Remittance
business, MCB Burqraftaar, where the focus was to highlight everyday
scenarios that create the need for remittances. MCB One Current Account was
another product that was launched in 2021 with a focus to create awareness of
this special account designed on the premise ‘one for all, all for one’ where
the average account balance determines specific free services and
benefits that a customer qualifies for. Significant efforts were also
undertaken to effectively support key regulator initiatives such as Roshan
Digital Account, Mera Pakistan Mera Ghar, Kamyab Jawan
Programme and Asaan Mobile Account among others.
On the CSR front, key initiatives led by Marketing Division include
development of Shahuda Public Park in Chakwal, K2 Hushe Expedition,
Dubai Expo sponsorship and sponsorship of the Pakistan Tourism Festival
amongst others. The Marketing Team also successfully managed and executed
several internal events, such as celebration of the Bank’s yearly Anniversary
and loan disbursement ceremony for Mera Pakistan Mera Ghar scheme.
The team also managed the Illumination of MCB House in Lahore to
commemorate Independence Day and Breast Cancer awareness activities for
‘Pinktober’. The Team revitalized its efforts to strengthen the Bank’s
presence
on Social Media and used the communication channel
effectively to create visibility for strategic brand alliances and regulator
initiatives. The Division also took the initiative of creating tutorial and
educational videos to encourage and facilitate the use of its financial
solutions and services.
Going forward, Marketing Division will continue to focus on
enhancing Brand visibility through a combination of available
mediums, thereby reinforcing brand presence and creating greater
awareness of the Bank’s products and services.
MCB Islamic Bank Limited (the “Bank”) is the wholly owned
subsidiary of MCB Bank Limited and commenced its operations in
2015 with a nation-wide network of branches.
The aim of MCB Islamic Bank Limited is to be the first choice
Shari’ah compliant financial services provider for the
customers and to carry out business purely in accordance with
Shari’ah principles with full conviction and devotion.
Alhamdulillah, the Bank currently operates to provide Shari’ah
compliant value added and innovative banking solutions for customers
under the supervision of a Shari’ah Board chaired by the renowned
Islamic scholar Professor Mufti Munib-Ur-Rehman.
The Bank focuses on building strong and lasting relationships as
well as delivering an experience that satisfies all types of
customers across Corporate, Commercial, SME, Consumer,
Agriculture and Micro sectors. The Bank offers wide range of Riba
Free and Shari’ah compliant products for both personal and
business needs.
The Bank is using world’s renowned Core Banking Software
solution. Different services and products offered by the bank are available
to customers through a branch network of 175 plus branches backed by
175 plus ATMs (Onsite & Offsite). The Bank offers EMV
enabled Debit Cards, IOS and Android based native Mobile Apps
and Internet Banking services. Moreover, the Bank has also
developed its suite of Cash Management services, including Payment
upon Identification (PUI), Cash & Instrument Collection, Cash
in Transit Services (CIT), Corporate Internet Banking by acquiring
Oracle Banking Digital Experience (OBDX) and has also
developed product suite of Employee Banking for our Corporate
Customers.
The Bank is committed to share in the mutual benefits with
the customers, staff and shareholders who participate in our business success under
the highly skilled and seasoned management with the prime objective of ensuring
our customers’ satisfaction.
Corporate Governance
Corporate Governance at MCB Bank Limited (“MCB” or the “Bank”) refers to rights and responsibilities among different stakeh
through a set of rules, policies and practices by focusing on proper delegation, transparency and accountability in the organization as
Governance at MCB provides an essential foundation for sustainable corporate success and to build stakeholders’ confidenc
structured to ensure the regulatory compliance and to cater the maximum needs of Bank’s stakeholders.
Board Composition:
The Bank encourages representation of independent directors, non-executive directors and directors representing minority interest
directors. At present the Board includes:
Category
Independent Directors
Non-Executive Directors
Executive Director (President & CEO)

Female Director (Non-Executive)
Independent Directors and their Independence:

The Board has four (04) Independent Directors who meet the criteria of independence under the Companies Act, 2017 and the directives
Bank of Pakistan (“SBP”).
Representation of Female Directors on Board:

Mrs. Iqraa Hassan Mansha is representing female Director on the Board.
Non-Executive Directors:
All the directors on the Board are Non-Executive Directors except for the President & CEO of the Bank. The Non-
provide an outside viewpoint to the Board of Directors and are neither involved in managing the affairs of the Bank nor form part of the E
Management Team of the Bank.
Change of President & CEO

During the year, the term of President & CEO, Mr. Imran Maqbool was completed on December 20, 2021 and the Board appo
Mumtaz, as Acting President & CEO of the Bank with effect from December 21, 2021 subject to his Fit and Proper Test (FPT) cl
Bank of Pakistan (“SBP”). Subsequently, SBP has cleared FPT of Mr. Shoaib Mumtaz as President & CEO of the Bank on Februar
Casual Vacancies on the Board of Directors:

No casual vacancy occurred on the Board of Directors during the year 2021 except change of the President & CEO of
the Bank.
Executive director serving on the Board of other companies/trust:

President & CEO, the Executive Director is serving on the Board of a company as Non-Executive Director and also as a
Chairman of the Board of Trustees of a trust.
Detail of Board Meetings held outside Pakistan:

During the year 2021, all the Board of Directors meetings were held in Pakistan.
nce
Limited (“MCB” or the “Bank”) refers to rights and responsibilities among different stakeholders of the Bank
ces by focusing on proper delegation, transparency and accountability in the organization as a whole. Corporate
ential foundation for sustainable corporate success and to build stakeholders’ confidence. It has been
ompliance and to cater the maximum needs of Bank’s stakeholders.
of independent directors, non-executive directors and directors representing minority interests on its board of
Name
Mr. Yahya Saleem
Mr. Salman Khalid Butt Mr. Shahzad Hussain Mr. Masood Ahmed Puri
Mian Mohammad Mansha Mr. S. M. Muneer

Mr. Muhammad Tariq Rafi Mian Umer Mansha
Mr. Mohd Suhail Amar Suresh bin Abdullah Mr. Muhammad Ali Zeb
Mr. Shariffuddin bin Khalid
Mr. Shoaib Mumtaz

Mrs. Iqraa Hassan Mansha
dence:
rectors who meet the criteria of independence under the Companies Act, 2017 and the directives issued by the State
Board:
ng female Director on the Board.
Non-Executive Directors except for the President & CEO of the Bank. The Non- Executive Directors
rd of Directors and are neither involved in managing the affairs of the Bank nor form part of the Executive
t & CEO, Mr. Imran Maqbool was completed on December 20, 2021 and the Board appointed Mr. Shoaib
of the Bank with effect from December 21, 2021 subject to his Fit and Proper Test (FPT) clearance by the State
, SBP has cleared FPT of Mr. Shoaib Mumtaz as President & CEO of the Bank on February 09, 2022.
ors:
Board of Directors during the year 2021 except change of the President & CEO of
of other companies/trust:
ctor is serving on the Board of a company as Non-Executive Director and also as a
rust.
akistan:
irectors meetings were held in Pakistan.
Process of Appointment and Nomination of directors:
As per the applicable provisions of the law, the directors are elected by the shareholders of the Bank, whereas, the casual vacancies arising on th
are filled by the directors for the remaining term in accordance with the requirements of the Companies Act, 2017 and SBP regulations. Ever
qualify the prior assessment criteria of ‘Fit and Proper Test’ as framed by the State Bank of Pakistan. At the time of election of directors, it is ensur
comprised of directors who have diversified experience, suitable knowledge, appropriate skill set/expertise and competency considered re
context of the Bank's operations. It is also ensured that the Board has an appropriate mix of directors including female member(s), diversity, size an
to add value and to make the Board an effective decision making body.
Independent Directors are elected through the process of election of directors and meet the criteria laid down by the State Bank of Pakistan as well
requirements of the relevant laws, rules and regulations. An independent director means a director who is not connected or does not have any other
whether pecuniary or otherwise, with the company, its associated companies, subsidiaries, holding company or directors; and he can be reasonably
being able to exercise independent business judgment without being subservient to any form of conflict of interest. At present, Independe
selected from the data bank maintained by the Pakistan Institute of Corporate Governance.
During the year, the Board of Directors completed its term and was reconstituted in the Annual General Meeting held on
March 27, 2021. All the outgoing directors were re-elected unopposed including the Independent Directors.
Connection of External Search Consultancy for Selection of Independent Directors
The selection of independent directors as members of the Bank’s Board of Directors is carried out from a list maintained by the Pakistan Institute
Governance (PICG) under the Companies (Manner and Selection of Independent Directors) Regulations, 2018.
PICG has no other connections with the Bank, except for providing access to the database on independent directors
besides directors’ training and evaluation of Board and / or individual directors’ performance.
Directors' Participation/Attendance in Board and Committee Meetings held during 2021
Board of Directors Number of Board Committees' Meetings Attended
Sr. Name of (BoD)
AC BS&DC RM&PRC CR&MC ITC HR&RC PP&CA WO&WC
No. Director
Member Attended
Member Attended
Member Attended
Member Attended
Member Attended
Member Attended
Member Attended
Member Attended
Member Attended
Mian Mohammad
1 Mansha 5/5 – – 2/2 – – – – – – 4/4 1/1
2 Mr. S. M. Muneer 4/5 – – 3/4 – – 1/4 – – – - – –
Mr. Muhammad 5/5 – – – – – – – – – – – – – –

3 Tariq Rafi
4
Mian Umer 5/5 4/5 3/4 3/4 – – 5/5 – – 2/3
Mansha
5
Mrs. Iqraa Hassan 5/5 – – – – – – – – – – 1/4 1/3
Mansha
6
Mr. Muhammad Ali 5/5 5/5 – – 4/4 4/4 – – 4/4 3/3
Zeb
7
Mr. Mohd Suhail Amar 5/5 – – 4/4 4/4 – – 5/5 – - – –
Suresh
8
Mr. Yahya Saleem 5/5 – – – – – – – – 1/4 2/2 – –
9
Mr. Salman Khalid Butt 5/5 – – 4/4 4/4 4/4 5/5 2/2 – –
10
Mr. Shahzad Hussain 5/5 5/5 – – – – – – – – – – – –
11
Mr. Masood Ahmed 5/5 – – 4/4 – – – – – – – – – –
Puri
12
Mr. Shariffuddin bin 5/5 5/5 – – – – – – – – – – – –
Khalid
Mr. Imran Maqbool

(EX-President
13 & CEO) 5/5 – – 4/4 4/4 4/4 5/5 – – 3/3
Total Number of Meetings Held 5 5 4 4 4 5 4 3
Chairman Member
AC: Audit Committee
BS&DC: Business Strategy & Development Committee
Risk Management & Portfolio Review

RM&PRC: Committee
CR&MC: Compliance Review & Monitoring Committee
ITC: Information Technology Committee
HR&RC: Human Resource & Remuneration Committee
PP&CA: Committee on Physical Planning & Contingency Arrangements

Wo&WC: Write-Off & Waiver Committee
he casual vacancies arising on the Board, if any,
ct, 2017 and SBP regulations. Every director has to
e of election of directors, it is ensured that the Board is
rtise and competency considered relevant in the
emale member(s), diversity, size and is well-structured
the State Bank of Pakistan as well as comply with the

nnected or does not have any other relationship,
directors; and he can be reasonably perceived as
t of interest. At present, Independent Directors are
l Meeting held on
intained by the Pakistan Institute of Corporate

, 2018.
dent directors
– –
– –
0/0
0/0
– –
0/0
– –
– –
– –
– –
– –
– –
– –
0
Notes to Detail of Directors' Participation/ Attendance in Board and Committee Meetings
Name of Director Notes
1 Meetings of a particular forum attended by the concerned member during his/her tenure.
Mian Mohammad Mansha Remained member of the Board’s Business Strategy & Development Committee and Committee
on Physical Planning & Contingency Arrangements till April 20, 2021. His membership in these
committees resumed w.e.f. December 08, 2021.
Mr. Yahya Saleem Remained member of the Board’s Human Resource & Remuneration Committee and
Information Technology Committee till October 27, 2021.
Mr. Salman Khalid Butt Became member / Chairman of the Board’s Human Resource & Remuneration Committee
on October 27, 2021.
These notes are an integral part of the attendance sheet.
The names of the persons who, at any time during the financial year, were directors of the Bank:
• Mian Mohammad Mansha • Mr. Mohd Suhail Amar Suresh bin Abdullah
• Mr. S. M. Muneer • Mr. Yahya Saleem
• Mr. Muhammad Tariq Rafi • Mr. Salman Khalid Butt
• Mian Umer Mansha. • Mr. Shahzad Hussain
• Mrs. Iqraa Hassan Mansha • Mr. Masood Ahmed Puri
• Mr. Muhammad Ali Zeb • Mr. Shariffuddin bin Khalid
Disclosure on Board of Directors

Date of Joining/ Member of Board Number of other Board Memberships along with Name of Company(ies)
Sr. Leaving the Board Committees
Name of Directors Status of Director
No. Number
Mian Mohammad Non-Executive - BS&DC

1 Mansha 08/04/1991 Director - HR&RC 1
- PP&CA
Non-Executive - BS&DC
2 Mr. S. M. Muneer 08/04/1991 6
Director - CR&MC
Mr. Muhammad Non-Executive

3 08/04/1991 - WO&WC 6
Tariq Rafi Director
- AC
11-Nov-1997/ - BS&DC
Mian Umer 08-Sep-2007 Non-Executive - RM&PRC
4 12
Mansha & Director - PP&CA
27-Mar-2009 - ITC
- WO&WC
in Board and Committee Meetings
tenure.
oard’s Business Strategy & Development Committee and Committee
ingency Arrangements till April 20, 2021. His membership in these
mber 08, 2021.
oard’s Human Resource & Remuneration Committee and
ee till October 27, 2021.
f the Board’s Human Resource & Remuneration Committee
g the financial year, were directors of the Bank:

Mr. Mohd Suhail Amar Suresh bin Abdullah
Mr. Yahya Saleem
Mr. Salman Khalid Butt
• Mr. Shahzad Hussain
Mr. Masood Ahmed Puri
Number of other Board Memberships along with Name of Company(ies)
Name of Company(ies)
MCB Non-Bank Credit Organization, CJSC, Azerbaijan
Arabian Sea Country Club
Din Farm Products (Pvt) Limited
Din Global Investments Inc.
Din Industries Limited
Din Leather (Pvt) Limited

Din Textile Mills Limited
Central Depository Co. of Pakistan Limited
Siddiqsons Energy Limited
Siddiqsons Limited
Siddiqsons Tin Plate Limited
Triple Tree Associates
TSM Mining (Pvt) Limited
Adamjee Life Assurance Company Limited
Hyundai Nishat Motor (Pvt) Limited
National Textile Foundation
Nishat (Raiwind) Hotels and Properties Limited
Nishat Agriculture Farming (Pvt) Limited
Nishat Agrotech Farms (Pvt) Limited
Nishat Dairy (Pvt) Limited
Nishat Developers (Pvt) Limited
Nishat Hotels & Properties Limited
Nishat Mills Limited
Nishat Sutas Dairy Limited
Date of Joining/ Member of Board Number of other Board Memberships along with Name of Company(ies)
Sr. Leaving the Board Committees
Name of Directors Status of Director
No. Number
Mrs. Iqraa Hassan Non-Executive - HR&RC

5 03/05/2016 4
Mansha Director - PP&CA
27-Mar-2009/ - AC
07-Apr-2011 - RM&PRC
& Non-Executive - HR&RC
6 Mr. Muhammad Ali Zeb 17-Jun-2013 - CR&MC 3
Director
- PP&CA
- WO&WC
Mr. Mohd Suhail Amar - BS&DC

Suresh bin Abdullah - RM&PRC
Non-Executive - ITC
7 24-02-2014 3
Director
Non-Executive
8 Mr. Yahya Saleem 27-03-2018 (Independent) - 6
Director
Mr. Salman Khalid Butt - BS&DC

- RM&PRC
Non-Executive - CR&MC
9 10-11-2018 (Independent) - ITC 4
Director - HR&RC
Non-Executive
(Independent)
10 Mr. Masood Ahmed Puri 31-05-2019 Director - BS&DC 3
Non-Executive
(Independent)
11 Mr. Shahzad Hussain 31-05-2019 Director - AC 2
Mr. Shariffuddin bin Non-Executive

12 23-07-2019 - AC 5
Khalid Director
Mr. Shoaib Mumtaz - BS&DC

President & CEO - RM&PRC
13 21-12-2021 Executive Director - CR&MC 2
- ITC
- PP&CA
AC: Audit Committee
BS&DC: Business Strategy & Development Committee
Risk Management & Portfolio Review

RM&PRC: Committee
HR&RC: Human Resource & Remuneration Committee
ITC: Information Technology Committee
PP&CA: Committee on Physical Planning & Contingency Arrangements
CR&MC: Compliance Review & Monitoring Committee
WO&WC: Write-Off & Waiver Committee

Number of other Board Memberships along with Name of Company(ies)
Name of Company(ies)
Emporium Properties (Pvt) Limited
Nishat (Raiwind) Hotels and Properties Limited
Nishat Hotels & Properties Limited
Nishat Real Estate Development Company (Private) Limited
Adamjee Life Assurance Company Limited
Nishat Sutas Dairy Limited
Maybank Shared Services Sdn Bhd (a wholly owned subsidiary of

Maybank)
MBB Labs Pvt Limited (a subsidiary of Maybank Shared Services)
Technology Park Malaysia Corporation Sdn Bhd (TPM)

NC Entertainment Private Limited
NC Trading USA
Saleem Memorial Trust Hospital
YS Services Canada
YS Services Private Limited
YSG Trading Private Limited
New Heights Concepts Limited, a BVI Company
New Heights Management Limited, a BVI Company
Next Commercial FZ LLC, a Ras El Khaimah (Rakez),
U.A.E. Company
Saleem Memorial Trust Hospital
Jedex Logistics Pvt. Limited (Pakistan)
Jedex Transport Company LLC (UAE)
Transarab Trading Services (KSA)
NAMAL Education Foundation
Punjab Healthcare Commission
M&G Ship Management (L) Pte Limited (A subsidiary of Marine &

General Berhad)
Malayan Banking Berhad
Marine & General Berhad
Maybank (Cambodia) Plc (A subsidiary of Maybank)
Maybank Islamic Berhad
MCB Non-Bank Credit Organization, CJSC, Azerbaijan
MCB Employees Foundation

Board Committees
The Board has formed eight (8) sub-committees as given below:
1. Audit Committee;
2. Business Strategy & Development Committee;
3. Risk Management & Portfolio Review Committee;
4. Information Technology Committee;
5. Human Resource & Remuneration Committee;
6. Compliance Review & Monitoring Committee;
7. Committee on Physical Planning & Contingency
Arrangements; and
8. Write-Off & Waiver Committee.
Audit Committee Composition:
1. Mr. Shahzad Hussain - (Chairman, Independent Director)
2. Mian Umer Mansha - (Non-Executive Director)
3. Mr. Muhammad Ali Zeb - (Non-Executive Director)
4. Mr. Shariffuddin bin Khalid - (Non-Executive Director)
Terms of Reference
The main Terms of Reference/ roles & responsibilities of
the Committee are:
1. Determination of appropriate measures to safeguard the bank’s assets;
2. Reviewing annual and interim financial statements of the bank,
prior to their approval by the Board of Directors, focusing on:
• Major judgmental areas;
• Significant adjustments resulting from the audit;
• The going concern assumption;
• Any changes in accounting policies and practices;
• Compliance with applicable accounting standards;
• Compliance with listing regulations, other Statutory and
regulatory requirements; and
• All related party transactions.
3. Reviewing preliminary announcements of results prior to external
communication and publication;
4. Facilitating the external audit and discussion with external auditors
of major observations arising from interim and final audits and any
matter that the auditors may wish to highlight (in the absence of
management, where necessary);
5. Reviewing Management Letter issued by External Auditors and
management’s response thereto;
6. Ensuring coordination of internal auditors with external auditors
of the Bank and SBP inspection
team(s);
7. Making recommendations to the Board of Directors
for the appointment of external auditors, their removal, audit fees, the
provision of any service permissible to be rendered to the Bank by the
external auditors in addition to audit of its financial statements,
measures for redressal and rectification of non-compliances with the
Regulations. The Board shall give due consideration to the recommendations of
the audit committee and where it acts otherwise it shall record the reasons
thereof;
8. Reviewing and recommending of the Internal Audit Framework i.e.
internal audit function’s policies and manuals (also covering extent and
nature of assignments/ engagements that can be provided to the management
by internal audit function in its ‘Advisory / Consulting’ role) to the Board for
approval.
9. Reviewing, internal audit strategy, reporting framework and
procedures developed by Chief Internal Auditor and ensuring its
fullest support to the internal audit function and internal auditors enabling
them in performing their mandated activities independently and in objective
manner;
10. Reviewing and approving scope and extent of internal audit as well
as risk based annual audit plan. Furthermore, reviewing the implementation
status of the approved audit plan on a quarterly basis.
11. Ensuring that the internal audit function has adequate resources
(financial, human, operational, physical and technological), its staff is
adequately trained and the function is appropriately placed within the bank with
access to Bank’s people, information, processes, properties, records and
systems.
12. Ensuring independence of internal audit function, independence &
objectivity of internal auditors, optimal utilization of audit resources,
effectiveness of the internal audit function in Bank’s overall
governance and internal control framework and constructive engagement
of internal audit function with senior management and audited units etc.;
13. Reviewing and recommending budget / resource requirement of Audit
& RAR Group to the Board for approval. Further, reviewing, on a quarterly
basis, the utilization of Audit & RAR Group’s assigned budget and if
required, recommending provision of additional resource(s) to enable the
Group in performance of its activities;
14. Formulating ‘Key Performance Indicators’ (KPIs) for the Chief
Internal Auditor and evaluate his/her performance against set KPIs on an
annual basis;
15. Approving appointment/ re-hiring/ renewal of contract and removal
of Chief Internal Auditor along with his/her compensation
package/remuneration (including performance based bonus, increments, cash
rewards etc.), allied benefits (both financial/ non-financial),
promotion/demotion and other terms of employment to the Board through
Board’s Human
Resources & Remuneration Committee. However,
recommendation of Board’s Human Resources & Remuneration
Committee may be sought by the Audit Committee/ Board regarding
compensation package of Chief Internal Auditor, keeping in view the
institution-wide remuneration policy, formulated in terms of BPRD
Circular No. 01 of 2017;
16. Consideration of major findings of internal
investigations of activities characterized by fraud, corruption and
abuse of power and management's response thereto;
17. Reviewing summaries of quarterly report on frauds/ forgeries/
dacoities;
18. Reviewing, on quarterly basis, summary of significant
violations/observations, internal control deficiencies, organizational
and personal material conflicts of interest etc. to have deep
insights into state of internal controls and to set specific, time
bound action points/indicators to monitor improvements. Further
reviewing the management action plan to ensure that audit observations/
recommendations receive proper and timely attention by senior
management;
19. Analyzing and identifying (for necessary action(s)), on a regular
basis, ‘root cause(s)’ of control breaches of critical nature that keep
on occurring in at-least two audit periods despite implementation of
audit recommendations;
20. Obtaining Chief Internal Auditor’s independent annual
assessment/opinion on the state of Bank’s internal controls based on
the audits conducted over the period;
21. Ascertaining that the internal control systems including
financial and operational controls, accounting systems for
timely and appropriate recording of purchases and sales, receipts
and payments, assets and liabilities and the reporting structure are
adequate and effective;
22. Reviewing the Bank’s statement on internal control systems prior to
endorsement by the Board of Directors and internal audit reports;
23. Instituting special projects, value for money studies or other
investigations on any matter specified by the Board of Directors,
in consultation with the Chief Executive Officer (“CEO”) and to
consider remittance of any matter to the external auditors or to any
other external body;
24. Determination of compliance with relevant statutory requirements;
25. Establishing, maintaining and promoting regular communication
with senior management regarding deficiencies in internal controls;
review actions taken by management to address identified
deficiencies and ascertaining new developments to achieve a
uniform organization-wide commitment/ buy-in for implementation of
strong and effective internal controls;
26. Reviewing effectiveness of Whistle Blowing
procedures for receiving (through internal or
external sources) complaints/concerns regarding business ethics/conduct practices,
governance & risk management practices, controls over financial reporting,
auditing practices etc. Ensuring that such complaints / concerns are treated
confidentially and that the reporting employee(s) are protected and not penalized in
any manner whatsoever. Ensuring that employees remain aware of existence of such
procedures including mechanism for utilizing them and are encouraged to be a
‘whistleblower’;
27. Review of arrangement for staff and management to report to audit committee in
confidence, concerns, if any, about actual or potential improprieties in financial and
other matters and recommend instituting remedial and mitigating measures;
28. Reviewing, on a periodic basis, the Internal Controls over Financial Reporting (ICFR)
system for its effective implementation and its continuous up gradation.
29. Monitoring compliance with the Listed Companies (Code of Corporate
Governance) Regulations, 2019 and identification of significant violations thereof;
30. Consideration of any other issue or matter as may be assigned by the Board of
Directors.
Business Strategy & Development Committee Composition:
1. Mian Umer Mansha - (Chairman, Non-Executive
Director)
2. Mian Mohammad Mansha - (Non-Executive Director)
3. Mr. S. M. Muneer - (Non-Executive Director)
4. Mr. Mohd Suhail Amar Suresh - (Non-Executive Director)
5. Mr. Salman Khalid Butt - (Independent Director)
6. Mr. Masood Ahmed Puri - (Independent Director)
7. President & CEO - (Executive Director)
Terms of Reference
The main Terms of Reference of the Committee are to:
1. Review and develop Vision & Mission statements and core values for MCB both
from long and short-term perspective;
2. Develop Bank’s initiatives relating to business philosophy and acquisition,
strategic investment and divestment, capital raising exercise, strategic alliances and
brand management. In particular, review the following important matters:
a. Policy initiatives;
b. Business organization;
c. Oversee expansion plans; and
d. Contingency planning relating to business realignment.
3. Review and devise medium and long-term business plans and policies based on
strategy, future direction
and milestones set by the Board.
4. Monitor the progress of the key strategy initiatives undertaken by
the Bank.
5. Keep oversight on Bank’s Overseas Operations.
6. Undertake such other tasks as may be delegated by
the Board from time to time.
Risk Management & Portfolio Review Committee Composition:
1. Mr. Muhammad Ali Zeb - (Chairman, Non-Executive Director)
2. Mian Umer Mansha - (Non-Executive Director)
Terms of Reference
The main Terms of Reference of the Committee are to:
1. Review the Bank’s Risk Management Framework, in light of internal
developments, guidelines issued by the regulators and international best
practices, on as and when required basis and recommend to the Board for
approval;
2. Ensure Bank’s compliance towards Capital Adequacy and other related
Basel/ regulatory requirements on an on-going basis. Review Capital
Adequacy Ratio (CAR) in detail on half yearly basis;
3. Review and recommend to Board, Bank’s Risk Appetite Statement
on an annual basis;
4. Review various reports pertaining to the risk in the bank’s portfolio
prepared by the Risk Management Group. The Committee shall also
consider comments of the relevant senior management official/
Committee while reviewing such reports and communicate the
planned/executed corrective actions to the Board, if required;
5. Review of any report/MIS specifically assigned by a
regulator for Committee’s oversight.
Information Technology Committee Composition:
Director)
Terms of Reference
The main Terms of Reference of the Committee are:
1. To approve an overall plan for IT system for the Bank, prepared by the
management;
2. To approve the organizational IT and Digital strategic plans to ensure
an effective use of information
technology and digital initiatives in the Bank by all
Departments;
3. To approve and oversee the management’s program to automate the
organization’s use of internal information to ensure that data is
organized and shared in a manner that adds value and enhances productivity;
4. To approve and oversee a reliable and secure information security
infrastructure with the capacity to address future threats;
5. To approve policies that promote development of information
technology and Digital resources in an organized, deliberate, secured, and
cost effective manner;
6. To review and approve management recommendations for
IT standards for ensuring compliance with regulatory requirements
and identifying and mitigating significant IT related risks;
7. To review and approve the technology procurements as per Bank’s
approved IT Strategy. The Committee may further delegate the same to the
management as and when deemed fit;
8. To undertake any other IT or Digital Banking related work assigned to the
Committee by the Board.
Human Resource & Remuneration Committee Composition:
1. Mr. Salman Khalid Butt - (Chairman, Independent Director)
3. Mrs. Iqraa Hassan Mansha - (Non-Executive Director)
Terms of Reference
The main Terms of Reference of the Committee shall be to ensure that:
1. The existing policies are reviewed periodically and as necessary,
revised and recommended to the Board, in order to attract and retain
highly qualified employees. This may include review of remuneration policy
and remuneration setting mechanism at least once every three years. Among
other factors, the review of remuneration framework shall include, but not
limited to:
a. The effectiveness of remuneration policy and mechanism i.e., whether
it is providing the expected outcomes;
b. Any necessary changes required; and
c. Any unintended consequences.
The findings of review and rectification measures shall be
presented to the Board for approval.
2. The latest entry-level procedures are put in place for recruitment of
entrants.
3. The existing training facilities for the new entrants as
well as for up-gradation of skill level of all employees
are reviewed and revised, if required.
4. Proper classification & reclassification of employees’ pay
scales, job description and methods of their periodical review are put
in place.
5. The Bank-wide remuneration policy takes into account all
cadres of employees along with the pay-gap between the highest
paid and the lowest paid employees, across various levels as well as
across the Bank. The pay-gap shall be based on the total
compensation awarded to the employees and should be maintained
at reasonable levels without allowing concentration of the
benefits of Bank’s performance only to top level or certain class or
group of employees. The pay structure for all employees should be
fair, competitive and encourage performance and motivation.
6. That the remuneration policy of the Bank provides for reasonable
levels of compensation for contractual employees of Bank and
commensurate with their assignments.
7. That a separate structure of remuneration for Material Risk
Controllers (“MRC”) and Material Risk Takers (“MRTs”) is developed
as per remuneration policy. The MRTs should be identified as
functions and designations rather than as individuals. The MRTs
should have appropriate level of authority and control.
8. An objective criterion for work appraisal/performance is developed
and linked with the annual merit increase.
9. A review is undertaken of the organizational structure to bring it in
line with business strategy & development plan and approve an
organizational set up or any revision in the existing set up taking into
account the recommendations of the President & CEO.
10. An in-house human resource expertise is developed to undertake
market analysis of above policies with a view to developing MCB
policies.
11. If so required, the Committee can seek independent external
advice/expert opinion for accomplishment of devising an effective
and prudent remuneration framework.
12. Effective management information system is developed to
monitor the implementation of policies as approved by the Board.
13. Recommendation to the Board for consideration and approval of a
policy framework for determining remuneration of directors (both
executive and non-executive directors) and members of Senior
Management. The definition of senior management will be
determined by the Board which shall normally include the first layer of
management below the Chief Executive Officer.
14. Selection, evaluation, compensation (including retirement
benefits) and succession planning of the CEO, COO, CFO, Company
Secretary and Head of
Internal Audit and recommendation to the Board.
15. The structure of compensation package of Executive Directors, CEO, Key
Executives and any other employee or group of employees Bank-wide is
recommended to the Board for its own approval or approval of the shareholders, according
to legal and regulatory requirements.
16. The consideration and approval on recommendations of CEO on such matters for
key management positions who report directly to CEO.
17. In devising the Remuneration setting policy and mechanism, the Committee can
also seek internal inputs from any other Committee of the Board or directly from any
department or official of the Bank.
Compliance Review & Monitoring Committee Composition:
1. Mr. S. M. Muneer - (Chairman, Non-Executive Director)
Terms of Reference
1. To review six monthly reports, prepared by the Compliance & Controls Group
and routed through the President, on overall compliance risk management in the
Bank (local as well as overseas operations) including the actions taken on the
recommendations and observations of SBP in its Annual/Thematic Inspection Reports;
2. To evaluate the effectiveness of the Bank’s overall management of compliance
risk, at least annually; keeping in view the regulatory observations in onsite
examinations, regulatory enforcement actions, internal assessments/feedback from
internal audit, compliance reviews, as well as interactions with the Chief Compliance
Officer (“CCO”);
3. To carry on liaison between the Board and the management and make
recommendations to the Board, if necessary, for taking decisions on expedient and
appropriate disposal of compliance issues raised through Compliance Committee of
Management (“CCM”) and SBP’s inspection reports and other AML/CFT related
identified issues;
4. To oversee the effectiveness of Service Quality function of the Bank and to
review the Bank’s performance against committed service deliverables.
5. To review/recommend Compliance Risk Strategy/ Policy, Compliance Program and
allied policies and oversee its implementation across the Bank in letter and spirit;
6. To recommend appointment of CCO on the advice
of the President and ensure that position of CCO
does not remain vacant for more than 60 days.
Furthermore, to approve any disciplinary action or termination of the
CCO;
7. To ensure that CCO has appropriate stature, authority, resources
(physical, financial and human), support to fulfill his duties,
independence and capacity to offer his objective opinions and
advise to senior management and Board on matters of compliance risks;
8. To ensure that Compliance Function (“CCG”) has subject
experts on various critical areas such as risk management, credit
operations, product compliance, customer service, international trade,
outsourcing, corporate governance, financial disclosures, business
continuity, information technology, general banking operations,
AML/CFT etc. to provide guidance to business areas as and when
required.
9. To ensure that Compliance Function (“CCG”), being the second
line of defense, assists line managers/ departments in designing and
implementing adequate controls to manage risks of non-compliance
and monitors and assesses bank-wide compliance risk and reports
risk profile to Board and Compliance Committee of Management.
10. To engage with the CCO on half yearly basis, for his feedback
on issues faced by the Compliance Function (“CCG”) in the
implementation of board approved compliance program;
11. To review the minutes of Compliance Committee of Management
(CCM) meetings to ascertain its effectiveness in managing compliance
risk;
12. To review the progress in implementing remedial actions taken
with respect to instances of non- compliance or control weakness
as identified by Compliance Function through its regular compliance
reviews and / or various other sources;
13. To review the compliance risk relevant agenda items as required
under SBP regulations/ instructions of overseas jurisdictions,
AML/CFT perspective and SBP inspection reports’ observations as per
their respective timelines/ frequencies (quarterly, semi- annually or
annually);
14. To satisfy itself of receiving the accurate as well as comprehensive
information required to perform its compliance risk oversight
responsibilities, including seeking assurances from Senior Management
that the compliance risk controls have been implemented and are working
effectively;
15. To ensure changes in the Rules/Regulations and Laws are
reviewed on an ongoing basis in the existing policies or through
introduction of new policies.
16. The Committee would recommend to the Management for
updation of existing policies of the Bank’s local and overseas operations,
if required, and/or determine the need for introduction of new
policies, in accordance with the changes in the following:
a. Local laws, including but not limited to the SBP
Act, Banking Companies Ordinance, Prudential Regulations, Code of
Corporate Governance, Securities & Exchange Commission of Pakistan
Instructions, Rules, Regulations & Circulars and Listing Regulations of
Stock Exchanges;
b. Existing and prospective business environment; and
c. Operational requirements.
17. To review Management’s updates on technology upgrades w.r.t. AML,
Bank’s data quality/cleansing, delay in filing of Suspicious
Transaction Report (“STR”) and delays / breaches in freezing of
sanctioned accounts.
18. To ensure that Bank’s policies are placed before the Board for approval
after recommendation by the respective Board Committees.
19. Any other issue that is deemed necessary and required by the
regulations.
Committee on Physical Planning & Contingency Arrangements
Composition:
Director)
3. Mrs. Iqraa Hassan Mansha - (Non-Executive Director)
Terms of Reference
1. To develop and devise an overall plan for physical infrastructure and
contingency arrangements for the Bank;
2. To review and monitor all work in progress, including construction of
premises and renovations, which shall, inter alia, be based on physical
planning;
3. To review, monitor and recommend to the Board the building plans,
master development agreements & contingency arrangements;
4. To review, from time to time, as the Committee deems appropriate,
the administrative structures and plans in place to ensure the ongoing health
and safety of utilities and physical assets, including land & buildings and
recommend, as appropriate, changes in plans arising from this review;
5. To review updates on Bank’s property purchases.
Write-Off & Waiver Committee Composition:
Director)
2. Mr. Muhammad Tariq Rafi - (Non-Executive Director)
Terms of Reference
1. To review and approve write-off & waiver cases on
behalf of the Board of Directors and;
2. To submit cases of write-off & waiver for post facto ratification
by the Board.
Management Committees
Management committee
1. President & CEO – Chairman
2. Group Head - Oversight & Monitoring
3. Chief Financial Officer
4. Group Head – Operations
5. Chief Compliance Officer
6. Group Head – Human Resource Management
7. Group Head – Risk Management
8. Group Head – Legal Affairs
9. Group Head – Retail Banking
10. Chief Information Officer
11. Group Head – Security & Marketing
12. Group Head – Consumer & Digital Banking
13. Group Head - Treasury & FX
14. Group Head - CFIBG
Purchase & Expense Committee
Assets & Liabilities Committee
1. President & CEO - Chairman
4. Group Head – Treasury & FX
8. Group Head – CFIBG
Write off Committee
7. Head – Capital Markets Division
8. Div Head - SAM Corporate & Commercial
9. Div Head - SAM Secured & Retail
Investment Committee
2. Head – Capital Markets Division
3. Group Head – Treasury & FX
IT Steering Committee
Disciplinary Action Committee
1. Group Head – Human Resource Management -
Chairman
Litigation Review Committee
1. Group Head – Legal Affairs - Chairman
3. Div Head - SAM Corporate & Commercial
4. Div Head - SAM Secured & Retail
8. Division Head – Legal Affairs
9. Head - Litigation Department
Management Credit & Risk Committee
3. Division Head - FIPS & MRMD– Acting member
Overseas Monitoring Committee
1. Group Head – Oversight & Monitoring - Chairman
Compliance Committee of Management
7. Group Head – Legal Affairs
Cyber Security Committee
1. Group Head – Risk Management - Chairman
Outsourcing Relationship Review Committee
Management Sub-Committee for Resolution of Long Outstanding Audit
Issues
1. Group Head – Oversight & Monitoring - Chairman
5. Group Head - Retail Banking
Management Sub-Committee on AML/CFT
1. Chief Compliance Officer - Chairman
4. Group Head - Retail Banking
5. Group Head - Risk Management
Management Sub-Committee for Monitoring of Central Banks'
Inspection Reports
1. Group Head - Oversight & Monitoring - Chairman
4. Group Head - Risk Management
Performance Evaluation of the Board of Directors, its
Committees and Individual Directors:
The Bank has developed a formal and effective mechanism for annual
performance evaluation of the Board as a whole, its Committees, the
Chairman, Individual Directors and the President & CEO in line with the
regulatory requirements. This activity is performed annually, whereas,
the same is undertaken by an external independent evaluator at least every
three years.
During the year, MCB Bank Limited performed in-house
performance evaluation of the Board, the Chairman, Individual Directors
including Independent Directors, the President & CEO and Board’s
Committees in line with the ‘Guidelines on Performance Evaluation of
the Board of Directors’ issued by the State Bank of Pakistan and the
Listed Companies (Code of Corporate Governance) Regulations,
2019.The overall rating of the Board is highly encouraging, particularly in
respect to its composition, expertise, effective risk management, adequate
system of internal controls and audit function.
Performance Evaluation through External
Independent Evaluator:
In order to bring objectivity to the Board’s annual performance
evaluation process, third party assessments are separately carried out by the
Bank once in every three years. The Bank has engaged the Pakistan Institute
of Corporate Governance (PICG) as an Independent External Evaluator,
who conducted the performance evaluation of the Board as a whole, its
Committees and Individual Board Members in 2019. The Bank is also in
process of conducting the said activity through independent evaluator for the
year under review.
Criteria for Annual Performance Evaluation of the Overall Board of
Directors:
While conducting the annual performance evaluation of the Board as a whole,
the Bank in line with the SBP Guidelines adopted an in-house approach.
The overall rating of the Board was found highly encouraging, particularly,
in respect of its composition, expertise, effective risk management, adequate
system of internal controls and audit function. The Board considers the long-
term policy- related matters and sets the Bank’s strategic aims to put them into
effect and to uphold the vision, mission and core values of the Bank. It exhibits
high standards of business and professional conduct in managing and
supervising affairs of the Bank and reporting to shareholders on its stewardship.
The Board acts on a fully informed basis in the best interest of the Bank and its
stakeholders and set ‘tone at the top’ in order to promote a sound corporate
culture.
During the year, the overall performance evaluation of the Board was conducted
by the Evaluation Committee of the Bank on basis of questionnaires broadly
covered under below mentioned criteria:
a) Is the composition of the board appropriate, having the right mix of
knowledge, expertise and skills to maximize performance?
b) How well the board exercises its role ensuring that the organization supports
and upholds the vision and mission, core values etc.?
c) Is the policy framework of bank/DFI developed appropriately?
d) What has been the board’s contribution towards developing strategies?
e) Is the board able to make timely strategic decisions
ensuring operations are in line with strategies?
f) Is the information provided to the board appropriate, accurate, timely
and unbiased?
g) What has been the board’s contribution in ensuring robust and
effective risk management?
h) Has the board ensured that internal control and the audit function are
conducted in an effective manner?
i) Has the board ensured timely and accurate disclosure on all material
information?
j) Is the board as a whole, up-to-date with latest developments in
the regulatory environment?
k) Are the board procedures conducive to effective performance
and flexible enough to deal with all eventualities?
l) Is the board effective in adherence to the code of conduct?
Criteria for Annual Performance Evaluation of the Board Committees:
The rationale for the formation of Board Committees is to assist it in the
performance of its functions and enhance the efficiency by sharing
the work load of the Board. MCB Board has formed eight (8)
Committees assisting the Board in the area of audit, strategy setting,
risk management, human resource management, physical planning
& contingency arrangements, information technology,
compliance reviews and write-offs & waivers. The size, structure and
skill set of the Board Committees are in line with the applicable laws,
rules and regulations as well as business needs of the Bank.
The annual performance evaluation of the Board Committees
was also performed by the Evaluation Committee by using in-
house-approach on the basis of specific questions/criteria
mentioned in the SBP Guidelines. The consolidated final
ratings of the evaluation of the Board Committees were in line with
the rating given by the PICG as an independent evaluator
during the year 2018. The overall results showed that the Board
Committees have well-defined objectives and have been properly
structured with appropriate Terms of Reference and fulfilling their
respective roles effectively and efficiently.
During the year, the performance evaluation of the Board Committees
was conducted by the Evaluation Committee of the Bank on basis of
questionnaires broadly covered under below mentioned criteria:
a) Are the size, structure and skill set of committees appropriate?
b) Does each committee have adequate and appropriate written terms of
reference?
c) Are the committees effectively discharging their functions and
duties as per terms of reference?
d) Is the frequency of committee meetings adequate?
e) Are the committee meetings organized properly with appropriate
procedures?
f) Are the committee meetings conducted in a
manner that encourages open communication and
meaningful participation of its members?
g) How effectively and proactively committees have followed up with their areas of
concern?
h) Are the suggestions and recommendations of committees effective?
Annual Performance Evaluation of the Chairman, Individual and Independent Directors:
As per the requirements and criteria given by the SBP Guidelines, the performance
evaluation of the Chairman of the Board was performed by the Independent Directors.
Similarly, the performance evaluation of Individual Directors was conducted by the
Chairman; however, Independent Directors are evaluated by all other Directors of the Bank
excluding the Director being evaluated. Based on the results of the performance
evaluation of the Chairman, Independent and other Non-Executive Directors, it was
found that the individual Directors were making valuable contributions with proper
commitment to their respective roles and responsibilities.
Annual Performance Evaluation of the President & CEO of the Bank:
The President & Chief Executive Officer (“CEO”) of the Bank is vested with the
responsibility of managing overall affairs of the Bank. He through effective leadership and
team building efforts achieved the maximum possible performance of the Bank and
managed the affairs of the Bank in accordance with strategic and long term
objectives of the Bank. He ensured that the Bank’s resources and budgetary targets
are aligned with the strategic plan of the Bank and the best industry practices. He
promoted the highest standards of integrity, probity and good governance within the
Bank. He showed his commitment to stakeholders of the Bank in defining
strategic planning with great emphasis on service quality, investment in network
infrastructure and human capital, fortifying compliance & risk standards and also
remained steadfast in maintaining Bank’s fortress balance sheet. The Senior
Management under his leadership devised its goals in line with the strategic direction of the
Bank.
During the year, the performance evaluation of the President & CEO was
conducted by all the Directors of the Bank on basis of below mentioned criteria:
a) Were the financial/business targets set by the board
achieved?
b) Does he possess leadership qualities i.e. correct anticipation of business trends,
opportunities and priorities affecting the institution’s prosperity and operations?
c) Has he developed clear mission statement, policies, and strategic plans that
harmoniously balance the needs of all the stakeholders?
d) Does he ensure that company’s resources and budgets are aligned with the
implementation of the organization’s strategic plan?
e) Does he establish an effective organization structure
to ensure management’s focus on key functions?
f) Does he timely and effectively execute strategies set by the board?
g) Has he served as an effective representative while communicating
with all the stakeholders?
Directors’ Remuneration:
The Board has approved the scale of remuneration to be paid to the
Chairman and other Board Members excluding Executive Director(s)
for attending the Board and its Committees meetings. The level of
remuneration is determined in such a way that it encourages
independence, motivation and retention of Board Members. No
remuneration is paid to the Executive Director(s) except for traveling,
boarding, lodging and/ or any other expenses incurred for attending Board
and its Committees meetings. The Board may also determine additional
remuneration for a director including the Chairman of Board and
Chairman of any Sub-Committees of the Board for performing extra
services. The scale of remuneration including additional remuneration is
within the prescribed limits of the State Bank of Pakistan and it has been
duly approved by the Shareholders of the Bank.
Directors’ Remuneration Policy:
The Board has framed and approved a comprehensive and transparent
Directors’ Remuneration Policy (the Policy) for the Chairman and
other Board Members in accordance with the provisions of applicable
laws, rules and regulations as amended from time to time. The Policy aims
to set out the requirements and methodology for determining the scale
of remuneration and other allowable expenses to be paid, from time to
time, to the Chairman and other Directors for attending the Board and
its Committees meetings. The Policy ensures that the Board Members are
fairly rewarded with regard to their respective responsibilities undertaken,
and also to attract and retain high-calibre, experienced directors by offering
appropriate remuneration levels commensurate with their expertise, skill
and experience. The Policy has been formulated with clear mandate and
charter, keeping in view the ownership structure, governance
mechanism, risk profile, scope of operations and performance of the
Bank. The Policy is applicable to Non-Executive/Independent Directors,
Executive Director(s) and the Chairman of the Board of Directors.
The Bank being financial services provider always adheres to
practicing good governance, enabling to enhance its efficiency and
footprints in financial sector. MCB’s Board is comprised of directors
who have diversified experience, suitable knowledge, appropriate skill
set/expertise and competencies considered relevant in the context of the
Bank's operations and to make the Board an effective oversight and
decision making body.
Payment of Directors’ Remuneration:
The detail of remuneration paid to the Executive Director and the Non-
Executive Directors during the year 2021 has been disclosed in the Note
No. 40 of the Unconsolidated
Financial Statements of the Bank for the year ended
December 31, 2021.
Directors’ Orientation:
Directors’ orientation enables the directors to have better understanding of
specific context under which directors operate and comprehend their duties
and responsibilities and also to acquaint them with wider scope of the
responsibilities, propagate due diligence and acting in good faith while
effectively managing the interests of the Bank. It continues through the
orientation stage and leads to ongoing directors’ education as well as directors’
and Board’s assessment. An orientation program is aimed at increasing
director's familiarity with the Bank, its industry as well as equipping the
directors with sufficient information and resources that facilitate fully-
informed decisions.
In this connection, the Board Members are regularly provided with update
on new applicable laws, rules and regulations including amendments thereto to
apprise them with their powers, duties and responsibilities. At the time of
induction of new director(s), he/ she is given orientation about the Bank’s
corporate governance framework, its businesses, current issues, strategies
and operations by the Management to acquaint them with the Bank’s
overall operations in order to enable them to effectively govern the affairs of the
Bank on behalf of shareholders. The directors are also provided with the
detailed written material in shape of extracts from relevant laws, rules &
regulations on powers, duties & responsibilities of the Board of
Directors.
Policy of retention of fee / remuneration from Nomination
on the Board of other companies:
The Directors have approved the Nomination Policy whereby Bank’s
Executives are nominated on the Board of other Companies on behalf of the
Bank. Nominee Directors who are employees of the Bank shall, however, have
to surrender compensation such as meeting attendance fee to the Bank.
Directors’ Training Program:
All Board Members, either have minimum education and experience required
for exemption from Directors Training Program (“DTP”) or have already
undergone such training as narrated in the Listed Companies (Code of
Corporate Governance) Regulations, 2019 and the Corporate
Governance Regulatory Framework issued by SBP.
MCB Board is fully adhered to directors training arrangements under
the Regulations. Further, the Bank is also well ahead of the prescribed
deadlines of DTP requirements as given by the Regulator.
Board’s Function and Decision Making:
MCB’s Board sets the Bank’s strategic aims to be put into effect and
upholds the vision, mission and
core values of the Bank. It plays an effective role and
provides entrepreneurial leadership and direction for the Management of
the Bank. The Board considers long- term policy-related matters and
exhibits high standards of business and professional conduct in
managing and supervising affairs of the Bank. The Board comprises of
local as well as foreign directors who have diversified
experience, suitable knowledge, appropriate skills/ expertise and
competency considered relevant in the context of the Bank's operations
and to make the Board an effective decision making body. The collective
wisdom of the Board is translated into its decisions which form the basis
for Management to achieve its targets.
The primary role of the Board of Directors of the Bank is to
enhance shareholder value. The directions provided by the Board enable
the Senior Management to deliver remarkable returns to
stakeholders, sustainable performance and value added services. It
also helps in building a corporate culture of equality, trust and team
spirit. MCB Board is concerned with strategic matters and
overseeing the business of the Bank in light of emerging risks and
opportunities, on a regular basis and also involved in establishing and
reviewing the strategies, yearly targets and financial objectives of the
Bank.
Significant Issues/Matters discussed/approved by
the Board of Directors:
During the year 2021, the Board of Directors deliberated/
approved the following Significant Issues/ Matters:
• Annual Budget for the year 2022;
• MCB’s Enterprise Digital Transformation Strategy 2021-2024;
• Bank’s Policies including periodic reviews and amendments
thereto;
• Periodical review of Terms of Reference (“TORs”) of Board’s
Committees;
• Financial Results of MCB Bank and consolidated Financial
Results with its subsidiaries on quarterly, half- yearly and annual basis
together with Directors’ Report, Auditors’ Report and Chairman’s
Review Report;
• Declaration of Interim and Final Cash Dividends;
• Related Party Transactions as recommended by Board’s Audit
Committee;
• Management Letter(s) issued by the External Auditors of the Bank
and its compliance status;
• Significant activities and achievements of Board’s
Committees;
• Complaints Received under Whistle Blowing Program and Action
taken thereon;
• Matters recommended by Board’s Committees;
• Appointment/Engagement of External Auditors of the Bank as well
as for Bank’s Overseas Operations and also to Perform Agreed upon
Procedures as recommended by the Audit Committee;
• Exception from Current and Linkage Ratio Policy Framework;
• Performance Evaluation of the Board as a whole, its
Committees and Individual Directors;
• Quarterly and Annual Reports on Fraud & Forgery
Cases;
• Consumer Lending Business and Wealth Management Business; and
• Annual Branch Expansion Plan of the Bank.
Matters Delegated to the Management:
The strategic direction provided by the Board enables the Senior Management to
deliver remarkable returns to shareholders, sustainable performance and value
added services to the stakeholders. It helps in building a corporate culture of equality, trust
and team spirit within the Bank. The Board periodically reviews the financial and
operational performance of the Bank and sets the budgetary targets for the
Management. The Management is primarily responsible for implementing the strategies
as approved by the Board of Directors in conducting the operations of the Bank
effectively. Tactical and operational matters are delegated to the Management.
Further, under the direction and oversight of the President & CEO of the Bank, the Senior
Management carries out and manages the Bank’s activities in a manner consistent with
the strategies, business goals, risk appetite, incentive compensation and other policies
approved by the Board of Directors.
Governance Practices Exceeding Legal Requirements:
MCB Board as a whole respects the country laws and ensures meticulous compliance
of applicable laws, rules & regulations and being a leading Bank always adheres to
provide information and disclosures above the minimum regulatory requirements. The
Board never gives the room for any sort of non-compliance and takes it as reputational risk
for the Bank. The Management also regularly updates the Board with the latest
development in the regulatory environment and maintains stringent control over
regulatory compliance through designated resources. Following are some of the practices
of the Bank which exceed the minimum legal requirements:
• The Board has formed its eight sub-Committees as compared to the minimum
regulatory requirement of four.
• The Bank has only one Executive Director (President & CEO) though two executive
directors are permitted by SBP and four (one third of the Board as executive directors)
under the Listed Companies (Code of Corporate Governance) Regulations, 2019.
• Voluntary adoption of best reporting practices as prescribed by
ICAP/ICMAP/SAFA with a view to making the Bank’s financials more transparent.
• The Bank reports additional information in the Annual Report for stakeholders which is
not required by any laws.
Roles and Responsibilities of the Chairman and the
President & CEO of the Bank:
The Roles and Responsibilities of the Chairman and the
President & CEO of the Bank are described below:
Roles and Responsibilities of the Chairman:
The Chairman of the Board of Directors (“the Board”) shall be elected
from amongst the non-executive directors of the Bank and shall not hold
the office of Chief Executive Officer (“CEO”). He shall be
responsible for leadership of the Board and shall ensure that the
Board plays an effective role in fulfilling its responsibilities. The
Chairman has responsibilities and powers as vested in him/her by law,
Articles of Association of the Bank and/or assigned, from time to time, by
the Board. In particular, the Chairman will coordinate the affairs of the
Board and chair the meetings of the Bank; however, he shall not
participate in day-to-day management affairs of the Bank.
The Chairman shall ensure that:
• The composition of the Board is in accordance with legal and
regulatory requirements;
• The Board as a whole is functioning effectively in accordance
with applicable laws, rules and regulations to inculcate sound
business principles and prudent commercial practices;
• The Board receives appropriate, accurate, timely and unbiased
information, in particular, about the Bank’s affairs and performance to
enable the Board to take sound and effective decisions;
• The meetings of the Board and the Shareholders of the Bank are
convened in compliance with legal and regulatory requirements; and
proceedings of such meetings are accurately and fairly recorded. The
agenda of the meetings take full account of applicable laws &
regulations and the requirements of Bank’s business;
• All Board Members are encouraged to participate and raise issues and
concerns in the Board discussions, whilst promoting highest standards of
Corporate Governance;
• The Board is concentrating on relevant issues and
conflicts (if any) are effectively resolved;
• The Board sets the tone and values of the Bank; promotes a
culture of openness and constructive debate and effective decision
making;
• The Board is periodically updated on its statutory and fiduciary
duties, as required in relevant laws, rules and regulations enabling
the Directors to perform their roles & responsibilities properly and
prudently in the best interest of the Bank;
• Good relationship is maintained with Board Members,
the Management and the Shareholders; so that obligations to the
Shareholders and other stakeholders are understood and met; and
• Shareholders’ and other stakeholders’ interest is promoted in the
decisions taken by the Board.
The Chairman and the Vice-Chairman are elected by the
Board in accordance with the provisions of the Articles of Association of the
Bank and hold the office for a period of three years. In the absence of the
Chairman, the above mentioned role and responsibilities of the Chairman are
performed by the Vice-Chairman of the Bank.
Roles and Responsibilities of the President & CEO:
The President & CEO of the Bank, subject to the control and directions of
Board, is entrusted with the whole, or substantially the whole, of the power of
the Management to direct, manage, administer and control the affairs of the
Bank. He shall be responsible to the Board for the implementation of its
strategies, policies and decisions. The terms and conditions of appointment of
the President & CEO are determined by the Board of Directors. The
President is to be deemed a director and also entitled to all the rights and
privileges and be subject to all the liabilities of that office. He/she possess
leadership qualities
i.e. correct anticipation of business trends, opportunities and priorities
affecting the institution’s prosperity and operations.
The President & CEO of the Bank shall:
• Set the appropriate performance standards to
achieve financial/business targets set by the Board;
• Ensure that Bank’s resources and budgets are aligned with the
implementation of its strategic plan;
• Ensure assessment, monitoring and effective
management of the significant risks to the Bank;
• Ensure that Bank maintains high standards of corporate citizenship
and social responsibility wherever it operates;
• Establish an effective organizational structure having appropriate
resources/systems within the Bank, to ensure Management’s focus on key
functions;
• Timely and effectively execute strategies set by the Board;
• Manage the affairs of the Bank in accordance with strategies and long term
objectives approved by the Board;
• Ensure effective communication with the Board, Shareholders,
Employees, regulatory authorities and other stakeholders and serve as an
effective representative of the Bank while communicating with all the
stakeholders;
• Ensure through effective leadership, team building and motivation that the
maximum possible performance is achieved by the Bank and ensure that the
affairs of the Bank are being managed in accordance with highest ethical
standards, sound business principles and prudent commercial practices;
• Exercise the overall control, discretion, administration and supervision
for the sound and efficient management and conduct of the
business of the Bank;
• Monitor short term goals and ensure that the
operating groups/divisions develop their own plans
for the future, which need to be quantified as far as
possible with benchmarks established;
• Conduct a periodic performance review of the Senior Management
team so that major initiatives such as expansion strategies,
acquisitions and capital investments should be finalized and
adopted through major marketing and development exercises;
• Provide the Board with the relevant information it needs to
carry out its fiduciary responsibilities and to supervise the Senior
Management;
• Liaise between the Board and the staff, and communicate on
a regular basis with both to promote understanding, cohesiveness and
coordination for development of policies and their implementation;
• Ensure the compliance of applicable laws, rules and regulations;
• Ensure establishment of an effective information mechanism
whereby internal and/or external significant/material items
affecting Bank’s affairs are identified and shared with relevant
stakeholders on timely basis; and
• Maintain follow up on regulators’ observations and other lawful
instructions and issues raised by external and/or internal auditors and to
ensure their strict adherence/compliance in Bank’s operations.
External Oversight of Functions and Measures
Taken to Enhance the Credibility of Internal
Controls and Systems
To ensure effectiveness, applicability and appropriateness of the
implemented controls and systems, the management of the Bank
engages external subject matter experts / consultants to conduct
performance and quality assessments at regular intervals; or earlier, if
warranted by significant changes occurring within the Bank control
environment.
Following is the summary of key measures undertaken to enhance the
credibility of internal controls and systems through external oversight:
• The Bank has an independent operational Audit and RAR Group (IA)
responsible for providing a reasonable assurance to key stakeholders
regarding compliance with control framework of the Bank. As part of
IA’s overall quality assurance and improvement program, regular
strategic assessments are executed, through an external assessor, to
review conformance to regulatory framework and perform
maturity assessment of IA’s operating practices against external
performance benchmarks. The latest of the captioned external
assessment exercises was concluded in 2020.
• The information and network security systems are periodically
reviewed by the information systems auditors; in 2021, an
independent external
assessment was conducted as part of SWIFT’s
community standard assessment program forattestations against its customer security controls framework (CSCF).• External
Related Parties and approved Policy for
Related Party Transactions
The Board of Directors has approved a Policy for Related Party
Transactions. The Bank’s policy is to conduct all the related party
transactions on an arm’s length basis in the normal course of
business. If a transaction is not conducted on an arm’s length
basis, then specific approvals or ratifications are required by the
Board on recommendation of the Audit Committee of the Bank in order
to avoid any potential conflict of interest.
The policy specifies that all transactions entered into with related
parties shall require Board’s approval on the recommendation of the
Board Audit Committee of the Bank, which is chaired by an
Independent Director of the Bank.
Every director (including spouse, children, step children and parents) of
the Bank who is in any way, whether directly or indirectly, concerned or
interested in any contract or arrangement entered into, or to be entered into,
by or on behalf of the Bank shall disclose the nature of his concern or
interest at a meeting of the board. No director of the Bank shall, as a
director, take any part in the discussion of, or vote on, any contract or
arrangement entered into, or to be entered into, by or on behalf of the
Bank, if he/ she is in any way, whether directly or indirectly, concerned or
interested in that contract or arrangement, nor shall his/ her presence count
for the purpose of forming a quorum at the time of any such discussion or
vote.
During the year, the Bank has entered into transactions and contracts with
the related parties i.e. subsidiary and associate companies, post-
employment benefit plans for the Bank’s employees, Key
Management Personnel (KMPs), Close Family Members (CFMs) of
KMPs and other related entities. Those transactions include lending
activities, acceptance and placements, off balance sheet transactions and
provision of other banking and financial services that are carried out
in the ordinary course of business on an arm’s length basis at
commercial rates, except for the transactions that KMPs have availed under
HR policy of the Bank. 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.
The Bank has made detailed disclosures about related party
transactions in its financial statements annexed with this annual
report.
During the year, no contract or arrangement was entered into with related
parties other than in the ordinary course of business on an arm’s length
basis.
Managing Conflict of Interest:
Overview:
A conflict of interest arises when a director, directly or indirectly, has an
interest, pecuniary or otherwise, in performing his functions or duties and
such interest could lead to impair his ability to consider and decide any matter
impartially, without creating biasness in his or her own decision.
The Board Members owe certain fiduciary duties, including the duties of
loyalty, due diligence, and confidentiality to the Bank which require that a
director must act in good faith in order to promote the objectives of the Bank. In
this regard, the Bank has developed “Code of Conduct & Ethical Standards
for Directors” which requires that every director of the Bank has to disclose
potential or actual conflicts of interest with respect to his/her duties as
soon as they arise or he/she becomes aware of them. All the Board Members
take reasonable steps to avoid being in an actual, apparent or potential
conflict of interest. The Board recognizes the responsibility to adhere to
the defined policies of the Bank and avoid perceived conflicts of interest
that may arise during the course of business.
Disclosure of Interest by Director:
Every director of the Bank who is in any way, whether directly or
indirectly, concerned or interested in any contract or arrangement entered
into, or to be entered into, by or on behalf of the Bank discloses the nature of
his/her concern or interest at a meeting of the Board in accordance with the
regulatory requirements. Interested Director does not participate or vote in the
proceedings of such Board meeting.
Disclosure of Interest by Officers:
No other Officer of the Bank who is in any way, directly or indirectly,
concerned or interested in any proposed contract or arrangement with the
Bank shall, unless he discloses the nature and extent of his/her interest in the
transaction and obtains the prior approval of the Board of Directors, enter into
any such contract or arrangement.
Exposure in Companies where Directors are Interested:
The Bank does not enter into leasing, renting and sale/ purchase of any
kind with their directors, officers, employees or such persons who either
individually or in concert with family members beneficially own 5% or
more of the equity of the Bank.
The Bank does not take unsecured exposure on, or take exposure against the
guarantee of any of its directors, any of the family members of any of
directors and any firm or private company in which our directors are
interested as director, proprietor and partner or public company in which such
persons are substantially interested.
Without the approval of the majority of the directors excluding the
director concerned, the Bank does not
take any exposure on the companies in which directors
(including their spouses, parents, and children) hold key management
positions, or are interested as partner, director or guarantor, or
shareholders holding 5% or more of the share capital of that concern.
The financing facilities shall be extended at market terms and conditions
and be dealt with on arm’s length basis.
Conflicts of Interest Register:
The Bank maintains a register of all contracts, arrangements
or appointments in which directors are interested.
Insider Trading:
Directors being the insiders are prohibited by the law to indulge in insider
trading. They shall not deal directly or indirectly in the securities of
the Bank whether on their own account or their relative’s account,
if they are in possession of any unpublished price sensitive/inside
information, which if published or known, is likely to materially
affect the price of Bank’s securities. Directors, who are usually
considered to have such information, shall not communicate directly or
indirectly the said information to others who might exploit such
information while trading in the securities of the Bank.
As per the regulatory requirements relating to Insiders’ trading, the
Bank is maintaining the register of Insiders who have access to
unpublished price sensitive/inside information and the said Register
regularly updated by the authorized personnel of the Senior
Management of the Bank.
Whenever, the Bank or a person acting on its behalf, discloses any
inside information to any third party in the normal exercise of
employment, profession or duty; a complete and effective public
disclosure of that information is made simultaneously unless such
person owes a duty of confidentiality. Further, Bank has approved
policy on Prohibition of Insider Trading which is effectively implemented
throughout the Bank.
Investor Grievances
MCB Bank ensures safeguarding the interests of its stakeholders by
effective communication at regular intervals through multiple
mediums. However, the Bank acknowledges that there may be
instances where the stakeholders may have unaddressed concerns
which if unresolved may become a grievance. To timely address any
untoward incident, the Bank has a well-functioning grievance
resolution mechanism that provides a transparent and credible
process resulting in outcomes that are seen as impartial, effective, and
durable. Through this initiative the Bank is able to reduce investment
risks, provide an effective avenue to express and resolve concerns,
thereby substantiating positive relationship. The Bank ensures quality
services with uncompromising focus on investors’ concerns and
transparency in execution thereby extending respect to the trust placed.
Redressal of investors’ complaints
The Bank is rigorously following the complaints of investors received from any
regulatory forum and designates exclusive resources to resolve the matter both
effectively and efficiently. Further, a centralized function namely the Shares
department in the Corporate Affairs Division strives hard to manage any such investor
grievances in consultation with the share registrar. Investors can lodge complaints by
contacting the shares registrar, or write a letter or send an email to the share
department of the Bank. A designated e-mail address, (investor.relations@
mcb.com.pk) has been created to timely address the same and is readily available
through our website and annual reports.
Furthermore, in compliance with the regulatory requirements, the Bank has
duly disclosed the link (https://sdms.secp.gov.pk/) to SECP’s Service Desk
Managements System on its website; hence offering an additional outlet to the
stakeholders for lodging their unresolved grievances and reinforcing its commitment to
secure stakeholder interests.
The Bank ensures resolution of any grievances within statutory timelines.
Human resource management policies and succession planning
Human Resource Policies have been approved by the Board of Directors of the Bank
on the recommendation of Human Resource & Remuneration Committee (HR&RC)
of the Board in order to provide clear and definitive directions on human resource
(HR) related matters.
MCB being an equal opportunity employer is committed to creating a congenial and
efficient work environment in which the employees are assured a non-discriminatory,
transparent, harassment free and respectful atmosphere regardless of their cast, creed,
religion and gender. The Bank’s talent-acquisition policies provide unbiased criteria
for hiring people through lateral and batch hiring from any background as long as they
qualify for the professional criteria required by the Bank. The culture at MCB Bank
also depicts a healthy, team based and cooperative environment. We value the
unique talents and perspectives of our employees and strive to create a respectful
workplace.
The Bank is committed towards employee development practices which enable all its
employees to reach their optimum potential, thereby creating a high performance
organization. This belief is supported by the Bank's comprehensive approach
towards performance management, career development and management training.
The Bank affirms its belief in motivating its work force through positive reinforcement
and opportunities in each of these key areas regarding employee development. The Bank
has a transparent KPI based performance assessment and reward mechanism that
allows front office employees to track their performance with their goal achievement
throughout the year.
Salient feature of Staff Compensation/Remuneration
Policy
The Remuneration Policy of the Bank is designed to promote a
culture of sound compensation aligned with risk and responsibilities
in a transparent manner for acquisition of talent, retention of
employees and achievement of stakeholder expectations. MCB's
remuneration policy applies to all staff. The policy covers identification
of Material Risk Taker (MRT) and Material Risk Controllers
(MRC), performance assessment through balanced scorecards,
compensation structure and deferral mechanism.
The responsibility for approving the remuneration policy rests
with the Board of Directors. The Board has constituted Human
Resource & Remuneration Committee (HR&RC) for recommending
to the Board, the structure of the remuneration policy, including
the remuneration setting mechanisms, composition of remuneration,
and other related matters. HR&RC may take the support of
Bank's functions (e.g. Finance, Risk, Audit, Compliance, and HR). At
management level, HRMG leads the overall remuneration policy of
MCB.
All compensation provided to MCB staff can be divided into fixed
remuneration or variable remuneration. Fixed remuneration is that
part of the compensation which remains unaffected by the performance
of the Bank or the individual employee. Fixed component of
remuneration consists of basic salary and allowances that are part of the
total compensation package of the employee. Variable remuneration is
that part of the total compensation package of an employee which is
linked with some predetermined measures of performance.
Variable compensation is linked with the individual's performance and
comprises of performance bonus, commissions, incentives and
allowances.
The Bank has identified functions and designations as
MRTs/MRCs. These include, President/CEO, direct reportees to the
President/CEO (members of management committee), Country heads
of overseas branches, direct reportees to the members of senior
management managing critical functions as determined by HR&RC
and all other material Business units.
Balanced scorecards are defined for all MRTs & MRCs for
carrying out an objective and transparent performance assessment. The
variable compensation for the MRTs and MRCs is linked to the
performance result derived from the scorecard. The performance
assessment for MRTs and MRCs is performed via the structured balanced
scorecard mechanism that is in place to ensure that objective risk and
return measures are duly taken into account for determining the
bonuses and awards for MRTs and MRCs. The bonuses and awards for
MRTs are determined based on the performance of the individual, their
respective department and the overall Bank.
MRCs in the Bank have suitable autonomy and authority
to perform their tasks independently, without influence
from the functions they are assigned to oversee and
review. KPIs in the scorecards of MRCs are independent of the KPIs of the
business functions that they oversee. This ensures that achievement of
financial targets of the business functions are not considered for the
performance assessment of the MRCs.
For MCB employees’ classified as MRTs and MRCs, at least 25% of
their variable remuneration shall be deferred. Minimum deferral period is
three years with no vesting prior to year 1.
Policy for Sustainability and Corporate Social
Responsibility (CSR)
Policy Sustainability and Corporate Social Responsibility (CSR) is detailed in
Sustainability and Corporate Social Responsibility Section of this report.
Responsibilities of Management and the Board of Directors toward the
preparation and presentation of the financial statements
Responsibilities of Management and the Board of
Directors toward the preparation and presentation of
the financial statements
The Management is aware of its responsibility for the preparation
and fair presentation of the financial statements in accordance with
accounting and reporting standards as applicable in Pakistan, the requirements
of Banking Companies Ordinance, 1962 and the Companies Act, 2017 (XIX of
2017) and for such internal control as the management determines necessary
to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error. The Board of
directors is responsible for overseeing the Bank’s financial reporting process.
Policy for Safety of Records of the Bank:
Record management is a methodological approach to control the
maintenance and disposition of organization’s record. Record management
ensures that valuable record evidencing an organization’s activities that have
legal, financial, administrative or historical value are protected and
accessible while expired record is systematically destroyed. Thus MCB
Bank has put in place comprehensive processes, controls and
guidelines on handling, protection, retention, retrieval, and disposition of
recorded business information generated daily which are of ongoing
importance to MCB’s overall service capability and regulatory compliance.
In its endeavor to comply these guidelines / processes, the Bank has
already achieved major milestones.
Social and Environmental Responsibility
MCB Bank Limited undertakes its responsibility to be recognized as an
organization that is aware of both its social and environmental
obligation. The Bank continuously strives to inculcate the same by
creating
awareness amongst stakeholders, streamlining its
operational processes and reinforcing the same through various policies.
The key areas that the Bank focuses upon are to provide a safe and
healthy workplace, protect the environment and conserve energy
through use of appropriate technology and management practices.
Some of the salient features of the Bank policy are as follows:
• Compliance with local, national and international laws and
regulations as well as the spirit thereof and conduct of business
operations with honesty and integrity
• Promote and engage in social welfare activities that help strengthen
communities and contribute to the enrichment of society
• Provide innovative, safe and outstanding high quality banking
products and services exceeding the expectations of customers
• Significant investment to develop technological based
‘Alternative Delivery Channels’ for maximum ‘Financial inclusion’
• Sustainable development through building and maintaining
sound relationships with our stakeholders through open and fair
communication
• Communication and dialogue with employees, to build and share
the value of “Mutual Trust and Mutual Responsibility” and work together
for the success of all of our stakeholders
• Respect for people by honoring the culture, customs, history and laws
of Pakistan. Constantly search for safer, cleaner and superior practices
that satisfy the evolving needs of the society
• Minimize the environmental impact of business operations, by
working to reduce the wastage of all resources
• Develop, establish and promote practices enabling the
environment and economy to coexist harmoniously and build close
and cooperative relationships with individuals and organizations
involved in environmental preservation
Review by the Board of the Bank’s Business
Continuity Plan (BCP)
Business Continuity Management (BCM) is a process that identifies and
recognizes risks, threats and vulnerabilities that could impact
Bank’s operations internally or externally. BCM provides
framework and creates ability for an organization to mitigate risk,
withstand changes in the environment and still perform its critical
processes and functions.
A robust Business Continuity Plan (BCP) outlines a range of disaster
scenarios and the steps to be taken in order to minimize the potential harm
to business during adverse situations. BCP's/system recovery
procedures are written ahead of time therefore Bank endeavors to
have sustainable, effective enterprise wide BCM program
to provide seamless services and product reach to its
customers/ stakeholders.
The Board of Directors periodically reviews and gauges Banks preparedness to deal with
any untoward situation. Furthermore the senior management of the Bank ensures to
maintain an effective Business Continuity Policy & Framework to ascertain that
clear and concise plans are maintained for all critical areas which encompasses strong
remedial actions to reduce the risk of downtime in any contingency scenario. In these
difficult times when the world was taken aback by COVID-19 and every segment
of life got affected the Bank adopted a proactive approach and immediately arranged for
the Personal Protective Equipment’s (PPEs) comprising of face masks, hand gloves, face
shields, hand sanitizers etc. for its staff and visiting customers. Furthermore special
screening arrangement, maintaining social distance, minimizing staff strength, periodic
disinfection in branches and offices were the initiatives taken to ensure continuity of
business and services, thus complying with Government and WHO precautionary
instructions.
Further to nurture and enhance the confidence on Bank’s system and processes;
Business Continuity Plans are tested and updated on regular intervals. Since BCM is
well knitted into the Banks structure and branch network, thus it gives confidence to
its millions of customers, stakeholders and regulator that the Bank can live up-to the
commitment and expectations by ensuring continued functionality of its critical businesses
and functions in any circumstances.
Stakeholders’ engagement
Stakeholders’ engagement and the steps taken to solicit and understand the views of the
shareholders is detailed in the stakeholders’ engagement section of this report.
Statement by the Management of unreserved compliance of
International Financial Reporting Standards (IFRS)
The management of the Bank strongly believes in adherence to unreserved
compliance with all the applicable International Financial Reporting Standards
(IFRSs) issued by International Accounting Standards Board (IASB) for true and
fair presentation of financial statements.
Financial statements for the year have been prepared in accordance with the accounting and
reporting standards issued by IASB as are applicable in Pakistan. IFRS adoption status
is detailed in note 3 of the unconsolidated financial statements.
Whistle Blowing Program
Overview
MCB Bank is committed to continually operate at the highest standards of conduct in
our business. We are the trustees of public funds and it is our core value to serve
our community with integrity. We endeavor to earn and
uphold the trust of all our customers and stakeholders by serving and
dealing with them lawfully, ethically and professionally.
Purpose
This program provides a channel to Bank’s staff and outside
parties such as shareholders, vendors, customers etc. for raising
concerns/complaints about any irregularities, AML/CFT/CPF related
issues, impropriety, financial malpractices, frauds & forgeries,
personnel harassment and improper conduct or wrongdoing without
any fear of reprisal or adverse consequences. The objective of the
program is to address/resolve these concerns/complaints to prevent and/or
detect improper activities for safeguarding the interest and reputation
of the Bank and its stakeholders.
Scope
The program covers deliberate, voluntary disclosure of individual or
organizational impropriety by a person who has or had privileged access to
data, information or event about an actual, suspected or anticipated
wrongdoing within or by an organization that is within its ability to
control.
Protection of Whistle Blowers
MCB Bank is committed for protection of genuine complainants
against action(s) taken in reprisal for the making of protected
disclosures. Confidentiality of the complainant’s identity, the nature
of the report and the identity of the suspected person is strictly
maintained.
The Bank does not tolerate harassment or victimization and takes action,
which could involve disciplinary proceedings, to protect complainants
when they raise a concern in good faith.
Incentives for Whistle Blowing
Complainant may be awarded monetary benefit/career
advancement depending upon the nature and gravity of the
concerns/complaints
Whistle Blowing Mechanism
Employees or outside parties with concerns or complaints may report
such concerns or complaints to Whistle Blowing Unit through any of
the following means:
• Landline
• E-mail
• Fax
• Website
• Regular Mail
Concerns and complaints are investigated and findings are shared
with the senior management for their necessary action. Information related
to investigations is also shared with the Audit Committee and Board of
Directors
Pandemic Recovery Plan by the Management and Policy Statement
The emergence of COVID - 19 pandemic during 2020 inflicted an unprecedented global crisis; taking a large toll on human lives, inducin
economic downturn and exerting long term socio-economic repercussions. The emanating uncertainty garnered emergency response from G
the globe in the form of multiple policy measures implemented on the economic, fiscal and monetary fronts. The unprecedented COVI
brought about many challenges for the financial sector and regulator.
Responding to the challenge, MCB implemented comprehensive pandemic recovery plan based on guidelines by International and Nationa
based focus to protect the staff from impact of pandemic illness and ensure information system uptime, data integrity, service availability and overa
Pandemic impacted several aspects of the bank’s operations such as shortage of staff, increase in use of ATMs, increase
in volume of internet/mobile banking and call center services, delay in payments and increase in delinquencies etc.
During pandemic, the Bank ensured that strategies and processes are in place to enable business continuity to provide critical services while ensurin
safety of employees, customers, and vendors. Technology played a major role in business continuity.
1. Ensured the health and safety of employees, customers and vendors

During pandemic, the Bank implemented below measures to allow the continuity of operations with minimal contact between staff, customers, or s
periods of time.
1. Redirected customers from branch/office visits to online banking services. Encouraged customers to use
bank’s digital tools and other resources for self- service banking and 24/7 account access.
2. Reduce hours of operation and enabled employees to work from home or from alternative sites.
3. Used teleconference/videoconference for meetings (even for people in the same building).
4. Implemented restrictions on visitor access to the bank facilities and enforced quarantine for sick staff.
5. Installed sanitizing gel dispensers throughout all areas used by clients inside the branch and in internal areas for employees.
6. Rearranged furniture in order to allow more space between employees and between employees and clients or vendors.
7. Ensured the regular disinfection of sensitive areas and defined office hygiene procedures.
8. Regular temperature check was ensured at entry points of all locations and face masks made mandatory.
9. Strict protocols on social distancing were put in place.
2. Ensured continuity of the Bank’s operations

With shortage of staff, decline in branch activities, and the reduction in human interaction in general, the use of technology played an extremely im
1. Identified which jobs and tasks can and cannot be done, even partially, without being physically present in the office.
2. Ensured employees know how to use the various hardware and software dedicated for remote working.
3. Ensured preparedness for a high absentee rate and make back-up arrangements for key staff and functions.
4. Cross-train employees and ensure that succession/replacement plans are in place.
5. Established procedures for safeguarding data, including backups.
6. Audited the technology used for remote access and check for the need of increasing capacity, bandwidth and authentication mechanisms.
7. Checked the capacity of networks to handle increase in traffic.
8. Ensured telecommunication structure can handle increase in call volume.
3. COVID-19 Vaccination Drive

MCB Bank arranged vaccination drive for all its employees and their families at MCB House Lahore and MCB Tower Karachi. Along with safegua
employees and their families, this initiative this was an essential part of bank’s business continuity plan to ensure its commitment to smooth runnin
which were disturbed due to emergence pandemic last year.
Number of instances reported to Audit
Committee
Number of whistle blowing incidents (wrongdoings) along with update on
investigations/resolution reported to the Audit Committee and Board of
Directors during the year 2021 was 36.
Significant changes from prior years
• During the year, the term of President & CEO, Mr. Imran
Maqbool was completed on December 20, 2021 and the Board appointed Mr.
Shoaib Mumtaz, as Acting President & CEO of the Bank with effect
from December 21, 2021 subject to his Fit and Proper Test (FPT)
clearance by the State Bank of Pakistan (“SBP”). Subsequently, SBP has
cleared FPT of Mr. Shoaib Mumtaz as President & CEO of the Bank
on February 09, 2022.
• During the year one group head (Key Management Personnel) resigned from
his position and the Board approved his replacement accordingly.
Shares held by Directors, Chief Executive
Officer, their Spouses and Minor Children
Shares held by Directors, Chief Executive Officer, their Spouses and
Minor Children have been disclosed in “Categories of Shareholders”
section of the Annual Report.
Presence of Chairman of Audit Committee at the
AGM
The Chairman of the Board’s Audit Committee was present at the AGM
to answer questions on the Audit Committee’s activities and matters
within the scope of the Audit Committee’s responsibilities.
Chairman's significant commitments
Mian Mohammad Mansha has served as Chairman of MCB Bank, after
its privatization, from 1991 to mid- 1995 and then from 1997 till date.
Presently, he is also a member of the Board’s Human Resource &
Remuneration Committee, Committee on Physical Planning &
Contingency Arrangements and Business Strategy & Development
Committee at MCB Bank Limited. He does not have any significant
commitment other than the one mentioned in his profile under “Directors
Profile” section of the Annual Report.
nagement and Policy Statement
unprecedented global crisis; taking a large toll on human lives, inducing a synchronized
ns. The emanating uncertainty garnered emergency response from Governments’ across
the economic, fiscal and monetary fronts. The unprecedented COVID-19 crisis had
tor.
ndemic recovery plan based on guidelines by International and National authorities and a risk
ure information system uptime, data integrity, service availability and overall business resilience.
rtage of staff, increase in use of ATMs, increase

ayments and increase in delinquencies etc.
place to enable business continuity to provide critical services while ensuring the health and
or role in business continuity.
ontinuity of operations with minimal contact between staff, customers, or suppliers for prolonged
banking services. Encouraged customers to use

7 account access.
me or from alternative sites.
people in the same building).
enforced quarantine for sick staff.
nts inside the branch and in internal areas for employees.
ees and between employees and clients or vendors.
d office hygiene procedures.
ons and face masks made mandatory.
human interaction in general, the use of technology played an extremely important role.
n partially, without being physically present in the office.
ware dedicated for remote working.
rangements for key staff and functions.
s are in place.
ed of increasing capacity, bandwidth and authentication mechanisms.

c.
lume.
milies at MCB House Lahore and MCB Tower Karachi. Along with safeguarding the health our
bank’s business continuity plan to ensure its commitment to smooth running of all its operations
IT Governance BOD
BITC
Division Head
PMO
Presiden
Department Head Department Head t
Division Head IT
IT Finance IT Operation Enterprise
IT Governance is an integral part of Enterprise Governance
Infrastructure
and consists of the leadership and organizational structures and

Chief Information
Officer
/ Head IT
processes that ensure that the Bank’s IT sustains and extends the
Bank’s strategies and objectives. IT Governance systematically
Division Division
engages the Department
Board members,Department
Head IT BCP
executive management
Head
Department
Head
and underlying
IT Head
Support Services Business
Head IT
staff. It establishes a discipline ITused by the organization
Procurement IT Complianceto measure
Technology
Solutions
transparent accountability of decisions, and ensures the traceability
of decisions to assigned responsibilities. Well-structured IT
Governance would assist in creating efficiencies, enhance
conformity to internationally accepted best practices, improve overall IT
performance and also enable better control and security.
Information Technology Group is headed by CIO who in turn
reports functionally and administratively to the President/CEO. The
Office of the CIO provides the leadership for the development
and delivery of world- class technology services.
The position is directly responsible for;
a) Managing the operations of Information and
Technology Services for efficient and smooth delivery;
b) Recommending IT Strategy that is aligned with Bank’s overall
Strategy;
c) Encouraging technical innovation and the development of a
robust and dependable technology infrastructure;
d) Strengthening the IT Governance;
e) Providing guidance, oversight, and strategic thinking on information
technology;
f) Setting the overall direction for IT Group to introduce
and implement innovative technology solutions;
g) Ensuring the availability of Bank’s services as up &
running and active DR invocation mechanism at the time of disaster.
Information Technology Group (ITG) has been taken care by teams
of committed professionals, providing innovative and efficient
solutions to achieve and nurture strategic objectives and goals of
Business as well as other support
Profile of Shari’ah Advisor Board
(Annual Report – 2021)
Prof. Mufti Munib-Ur-Rehman
Chairman Shari’ah Board
Prof. Mufti Munib-ur-Rehman, working with MCB Islamic Bank since September 2015, is a renowned Shari’ah scholar with a vast 49
34 years’ Fatawas issuance experience. He remained the member of Shari’ah Advisory Board of Securities and Exchange Commission of Pakis
three terms and the member of the Council of Islamic Ideology Pakistan (CIIP), he rendered voluntary services for the country since 2001 to 2
Central Moon Sighting Committee Pakistan. He served as Director of Islamic Studies,
Hong Kong in 1985. He is the president of Tanzeem-ul-Madaris Ahle Sunnat Pakistan & Secretary General of Ittihad-e- Tanzeemat-e-
He participated in international seminars in Saudi Arabia, UK, Norway, USA, Canada, Kazakhstan, Turkey and other Countries.
He remained member of the Board of Studies of University of Karachi, Federal Urdu University & Board of Intermediate Karachi. He re
the syndicate of University of Karachi & PMAS Arid University, Rawalpindi. He is the member of National Curriculum Pakistan & Nation
Force. He was Shari'ah Adviser of Federal Shariat Court Pakistan. The 11 Volumes of his Fatwas has already published and has vast
amongst Ulama. He is the Principle & Managing Trustee of Jamia Naeemia Karachi. He is Chairman Shari'ah Advisory Committee of D
Takaful Ltd and remained Chairman Shari'ah Board of Burj Bank Ltd for more than a decade.
Mufti Syed Sabir Hussain

Resident Shari’ah Board Member/ Head-Shari’ah Compliance Department
Mufti Syed Sabir Hussain, working with MCB Islamic Bank Ltd. since September 2015, is a prominent Shari’ah Scholar a
Islamic Banker with 22 years of teaching, 15 years of Fatawa and Islamic banking experience. He holds Shaha
Takhassus-Fil- Fiqh, M.A Islamic Studies, M.Phil. in Islamic Banking & Finance and M.S (I.T) degrees. He is en
Islamic Banking and Finance from International Islamic University, Islamabad (IIUI).
He is ex-member of Shari’ah Advisory Board of SECP, Member of the Committee on Accounting and Auditing Standards of ICAP and invitee p
Shari’ah Advisory Committee of State Bank of Pakistan and Member of several committees constituted by SBP on AAOIFI Shari’ah sta
he was member of review committee for Urdu translation of AAOIFI Shari’ah standards. He is author of 33 books on Islamic economic
other social issues; He is also delivering lectures in different Dar-ul-Ulooms and Universities.
Mufti Nadeem Iqbal

Shari’ah Board Member
Mufti Nadeem Iqbal is the Shari’ah Board Member. He is senior teacher and Mufti at Dar-ul- Uloom Amjadia, Karachi and currently headin
has 30 years’ experience of teaching Islamic Jurisprudence and 18 years’ experience of issuing Fatawa (Shari’ah Opinions). He has 16 years’
Islamic Banking. He holds Master’s Degree in Islamic Studies from University of Karachi, Takhusus-Fil-Fiqh from Dar-ul-Uloom Amjadia, Ka
e- Nizami, and Fazil Shahada-tul-Almia. He gave his services as Resident Shari’ah Board Member/
Shari’ah Advisor at Soneri Bank’s Islamic Banking Division for 13 years. He is visiting faculty member at Sheikh Zayed Islamic Centre, Univers
Hamdard University, Karachi. He is writer of several books including Islamic Jurisprudence.
groups under the guidance of Board IT Committee (BITC)
and management IT Steering Committee (ITSC).
Group is further be strengthened by following functions:
a. IT Enterprise Infrastructure
Division
IT Support Services
b.Business
IT Operations
Head
Technology c. IT Software Solutions
d. IT Service Management
e. IT Support Services
f. IT Business Technology
g. IT Project Management
h. IT Financial Services
i. IT Procurement
j. IT Compliances & Internal Control
k. IT Business Continuity
INTERNAL GOVERNANCE
The Bank’s Management IT Steering Committee (ITSC) & Board IT
Committee (BITC) are the governing bodies that review, monitor, prioritize and
approve major IT projects. Key Objectives of these committees are:
– To provide a forum for discussions, review and advice on
Technology needs, Investments, Issues & Progress;
– Prioritize, approve and monitor investments (projects & resource
allocation), financial objectives and performance in order to review
whether IT and Business strategies aligned with each other;
– Assessment of IT capability and adequacy of the IT infrastructure &
Guidance on strategic goals and direction to see if enterprise achieving the
optimum use of the IT resources;
– To review adoption of best practices, standardization and interoperability
internally and externally;
– To provide resolution of cross-function or intercompany
critical issues;
– Consideration of risk exposures and monitoring of risk management;
– To review the communication path between the board/executive and
middle management.
Division Head IT
Service
Management
GH-RMG
Division Head
Information
Security / CISO
d
since September 2015, is a renowned Shari’ah scholar with a vast 49 years’ teaching and
Shari’ah Advisory Board of Securities and Exchange Commission of Pakistan (SECP) for
akistan (CIIP), he rendered voluntary services for the country since 2001 to 2020 as Chairman
slamic Studies,
Ahle Sunnat Pakistan & Secretary General of Ittihad-e- Tanzeemat-e-Madaris Pakistan.
rway, USA, Canada, Kazakhstan, Turkey and other Countries.
achi, Federal Urdu University & Board of Intermediate Karachi. He remained member of
awalpindi. He is the member of National Curriculum Pakistan & National Education Task
n. The 11 Volumes of his Fatwas has already published and has vast acceptability
a Naeemia Karachi. He is Chairman Shari'ah Advisory Committee of Dawood Family
or more than a decade.
’ah Compliance Department

Islamic Bank Ltd. since September 2015, is a prominent Shari’ah Scholar and experienced
ears of Fatawa and Islamic banking experience. He holds Shahadat-Al-Alimiyah &
M.Phil. in Islamic Banking & Finance and M.S (I.T) degrees. He is enrolled in Phd. on
ional Islamic University, Islamabad (IIUI).
Committee on Accounting and Auditing Standards of ICAP and invitee participant of

mber of several committees constituted by SBP on AAOIFI Shari’ah standards. Further,
FI Shari’ah standards. He is author of 33 books on Islamic economics & banking and
ul-Ulooms and Universities.
r and Mufti at Dar-ul- Uloom Amjadia, Karachi and currently heading Dar-ul-Ifta. He
8 years’ experience of issuing Fatawa (Shari’ah Opinions). He has 16 years’ experience in
niversity of Karachi, Takhusus-Fil-Fiqh from Dar-ul-Uloom Amjadia, Karachi, Fazil Dars-
ent Shari’ah Board Member/
rs. He is visiting faculty member at Sheikh Zayed Islamic Centre, University of Karachi and
ing Islamic Jurisprudence.
Role of Shari’ah Board
i. The Shari’ah Board (SB) shall advise the BOD and the executive management of the MCB Islamic Bank Ltd. (MIB) on all Shari'ah re
SB’s Decisions/Rulings/Fatawas shall be binding on the MIB whereas the Shari'ah Board shall be responsible and accountable for all its Sh
ii. The SB shall cause to develop a comprehensive Shari'ah compliance framework for all areas of operations of the MIB and shall appro
products/services to be offered and/or launched by the MIB.
iii. The SB shall ensure that all the MIB's products and services and related agreements/ contracts, structures, process flows, product m
advertisements, sales illustrations and brochures etc. are in conformity with the rules and principles of Shari'ah. The executive
seeking the SB’s decision on any proposal shall ensure provision of all the necessary information, details and documents enabling the SB to
understanding of the product, its process flows, business and economic outcomes and Shari'ah permissibility or impermissibility
iv. The Shari'ah Board shall have unhindered access to all records, documents and information from all sources including profes
MIB's employees in discharge of its duties.
v. Considering the importance of the SB’s decisions and their binding nature, the SB shall rigorously deliberate on the proposals before g
decision/fatwa; all such deliberations and rationale for allowing or disallowing a particular product/service etc. shall be duly recorded and d
vi. All the reports of internal/external Shari'ah audit and Shari'ah compliance reviews shall be submitted to the SB for prescribing approp
action. SB shall take up the unresolved issues with the management and if warranted shall include the outstanding issues in their annual Sh
Moreover, Head of SCD and RSBM shall discuss all the significant and unresolved issues with SBP inspection team during on-si
vii. The SB shall also specify the process/procedures for changing, modifying or revisiting Fatawas/Rulings/Guidelines
etc. already issued by SB.
Meetings of Shari’ah Board held in 2021

Meeting Attended (Yes / No)
S. No Quarter Date of Meeting
Chairman Member
1 Q1 19-03-21 Yes Yes
2 Q2 17-06-21 Yes Yes
3 Q3 27-09-21 Yes Yes
4 Q4 13-12-21 Yes Yes
Meetings of Shari’ah Board-Board of Directors held in 2021
Meeting Attended (Yes / No)
S. No Half Year Date of Meeting
Chairman Member
1 1st 09-02-21 Yes Yes
2 2nd 26-10-21 Yes Yes
Membership on Shari’ah Board of other Companies
Status of Member- Chairman/ Number of Other Board
Resident member/ Non Resident Memberships along with name of
S. No Name of Members Date of Joining/ Leaving the Board Member companies
1 Mufti Munib-ur-Rehman 15-09-15 Chairman 1. Chairman Shari’ah

Supervisory Board
• Dawood Family Takaful
2 Mufti Syed Sabir Hussain 16-09-15 Resident Member 1. Shari’ah Supervisory Board
Member / Consultancy
• Dawood Family
Takaful
3 Mufti Nadeem Iqbal 15-10-18 Non Resident Member • No other engagement

Report of Shari’ah Board
(For the Year ended December 31, 2021)
The Shari’ah Board hereby present its annual report on the affairs of MCB Islamic Bank Ltd.
The Shari’ah Board (SB) of MCB Islamic Bank Ltd. (the Bank) was constituted in September, 2015. Currently Shari’ah Board comprises of respec
Munib-ur-Rehman as Chairman Shari’ah Board, Mufti Syed Sabir Hussain as Resident Shari’ah Board Member (RSBM) and Mufti Nadeem Iqbal
Board. Despite the tough conditions of COVID all Shari’ah Board Members remain available throughout the year and many meetings were held thr
conferencing. In addition to that, four formal meetings of the Shari’ah Board were held during the year 2021 on the following dates to review vario
apart from other matters, include new products and services, product modifications, transactions, structures, processes and Shari’ah issues
• First Shari’ah Board Meeting – March 19, 2021
• Second Shari’ah Board Meeting – June 17, 2021
• Third Shari’ah Board Meeting – September 27, 2021
• Fourth Shari’ah Board Meeting – December 13, 2021
In order to assist the SB to supervise all these matters throughout the year, the Shari’ah Compliance Department (SCD) ensured that, apart from the
closely coordinate with SB. This resulted in the continuous involvement of SB on Shari’ah affairs of the Bank as well as enabled them to approve,
different matters in a timely manner.
1. While the Board of Directors and Executive Management are solely responsible to ensure that the operations of the Bank are conducted in a ma
with Shari’ah principles at all times, we are required to submit a report on the overall Shari’ah compliance environment of the Bank. During the yea
Board’s held meetings with Board of Directors on the following dates:
• First Shari’ah Board – Board of Directors’ Meeting – February 9, 2021
• Second Shari’ah Board – Board of Directors’ Meeting – October 26, 2021
2. To form our opinion as expressed in this report, the Shari’ah Compliance Department (SCD) of the Bank carried out reviews of each type of
product, process flow/modus operandi and concepts under the supervision of RSBM/Head Shari’ah Compliance. SCD kept Shari’ah board
Shari’ah compliance review activities of front and back offices of the Bank during tough conditions of COVID in the country. A list of bran
compliance review was approved by the Shari’ah Board. In this regard, 100 branches have been reviewed for Shari’ah compliance with strict comp
related SOPs and as far as Shari’ah compliance review of non-branch is concerned, it has been ensured to comply with the approved list of the Shar
to enhance the Islamic Banking and Finance knowledge and expertise of branch & non-branch entities’ staff members; Shari’ah trainin
mandatory for all staff of the Bank with the coordination of Learning & Development Department (L&D – HRG). Further RSBM/Head-SC
visit to 15 branches to ensure compliance of regulatory and Shari’ah requirements.
3. Four (4) Instructions & Guidelines and Four (4) Fatawas by the Shari’ah Board of the Bank are in vogue without any changes. All F
Instructions and Guidelines issued by Shari’ah Board of the Bank are being implemented in the Bank in true letter and spirit.
4. SCD with the coordination of management and under the supervision of RSBM/Head Shari’ah Compliance has reviewed various Product docu
reviewed and approved 63 modus operandi out of which 16 for Corporate Banking, 29 for Commercial Banking, 10 for SME Banking and the
Standard process flows. As far as Products are concerned, SB issued 71 Shari’ah Vetting Certificates related to products, 22 for Liabil
also includes Roshan Digital Accounts, 16 Diminishing Musharakah mode of financing, 4 each for Takaful, Guarantee & Treasury, 3 ea
Term Financing & Murabaha and some other Product related documents in the year 2021.
5. SCD has also facilitated Islamic Banking training sessions for the front and back offices staff of the Bank For complianc
instructions. L&D not only arranged class room sessions but also uploaded Online Islamic Banking training modules at Learning
Systems (LMS) for the easy access of Islamic Banking & Finance knowledge to staff. Despite the difficult conditions due to COVID, L&
to adhere to cover
the Islamic Banking & Finance trainings of its staff. Therefore, this year also, L&D had Virtual classroom session with
facilitation of SCD for the safety of staff and it allows learning for all by overcoming geographical obstacles.
Moreover, in view of COVID conditions L&D-HRG has taken initiatives to establish an effective and comprehensive Islamic Ban
mechanism in compliance with IBD Circular No. 02 of 2018, Dated: June 29, 2018, “Enhanced Training & Capacity Building M
Banking Institutions (IBIs)” issued by Islamic Banking Department, State Bank of Pakistan, for the Bank’s front and back offices
SCD’s staff facilitated as internal trainers on the Shari’ah related training initiatives during the year. Furthermore, alongside regu
of executive management Shari’ah trainings, L&D and SCD have jointly developed Islamic Banking & Finance Module and AAOI
Standards Module for capacity building of Executive Management, which was launched during 2021.
6. SCD has taken all necessary required actions in order to comply with the SBP-IBD Circular No. 01 of 2021, Dated: June 14, 2021, Sha
Compliance Risk Management (SNCRM). SCD has ensured that SNCRM should be an essential element of Bank’s overall Risk Managem
shall report all Shari’ah Non-Compliance events and transactions to the Risk Management & Portfolio Review Committee of the B
the Board of Directors on a quarterly basis. As far as monitoring of SNCRM is concerned, a Management Committee with the title of Sha
Compliance Risk Management Committee has been formed under Chair of President/CEO and representation form all Groups (Group
the said committee has been approved by President/ CEO and regular meetings are being conducted. This committee is responsible fo
of Shari’ah Non-Compliance Risk at the operational/management level. SCD reports all Shari’ah Non-Compliance events and transactions
committee.
7. Shari’ah Board praises and encourages the continuous, comprehensive & profound efforts and commitment of the Bank’s B
and the Management regarding implementation of all instructions and guidelines issued by the Shari’ah Board especially under the tough c
Recommendations:
Based on the observations made through Shari’ah review reports and Shari’ah Compliance checks, it is recommended that:
i. In future, there shall be more Shari’ah Trainings in compliance with regulatory requirements. There should be a continuity of co
mechanism to cater situations like COVID to ensure continuity and compliance of Shari’ah Trainings.
ii. More focus is needed on Product & Shari’ah trainings of Corporate, Commercial & SME banking and it is s
recommended to ensure mandatory Product & Shari’ah trainings of the staff of Trade Operations, as some issues were foun
during the Shari’ah Compliance review.
iii. Arrange general public awareness programs like, Seminars, Workshops and Question & Answer Sessions from the B
building up the true image of Islamic Banking & Finance as well as creating awareness/ removing misconception about Islam
iv. Continuity of Shari’ah trainings of the Bank’s higher management.
v. Continue with Microfinance activities and the Bank should encourage the Islamic Microfinance due to its req
country. Through Islamic Microfinance, Islamic Banking Industry can penetrate at grass-root level to facilitate micro level tr
vi. Usage of Islamic Banking terminologies must be ensured during the Bank’s activities. As far as internal env
Bank is concerned, all staff members of front and back offices are strongly recommended to follow the proper dress code str
be in line with the Bank Dress code policy, cultural norms, and reflect due modesty as required by the dictates of Shari’ah.
Conclusion:
Shari’ah Board has reviewed & advised corrective measures on SBP Inspection Report, the External & Internal Shari’ah
Audit and Shari’ah Compliance Inspection reports and is of the view that:
i. The Bank has complied with Shari’ah rules and principles in the light of Fatawa, Instructions and Guidelines issued
by Shari’ah Board.
ii. The Bank has complied with SBP Inspection report in true letter and spirit.
e MCB Islamic Bank Ltd. (MIB) on all Shari'ah related matters. All the
d shall be responsible and accountable for all its Shari'ah decisions.
all areas of operations of the MIB and shall approve all
s/ contracts, structures, process flows, product manuals, marketing

the rules and principles of Shari'ah. The executive management while
ormation, details and documents enabling the SB to have adequate
es and Shari'ah permissibility or impermissibility.
nd information from all sources including professional advisors and
hall rigorously deliberate on the proposals before giving any

ar product/service etc. shall be duly recorded and documented.
hall be submitted to the SB for prescribing appropriate enforcement
ll include the outstanding issues in their annual Shari'ah Board Report.
issues with SBP inspection team during on-site inspection.
r revisiting Fatawas/Rulings/Guidelines
s / No)
RSBM
Yes
Yes
Yes
Yes
s / No)
RSBM
Yes
Yes
Number of Other Board

Memberships along with name of
companies
1. Chairman Shari’ah
Supervisory Board
• Dawood Family Takaful
1. Shari’ah Supervisory Board

Member / Consultancy
• Dawood Family
Takaful
• No other engagement
oard
1, 2021)
015. Currently Shari’ah Board comprises of respected Professor Mufti

Board Member (RSBM) and Mufti Nadeem Iqbal as Member Shari’ah
oughout the year and many meetings were held through audio and video
e year 2021 on the following dates to review various matters which
ons, structures, processes and Shari’ah issues, referred to them:
nce Department (SCD) ensured that, apart from the SB meetings, it

s of the Bank as well as enabled them to approve, by way of circulation,
at the operations of the Bank are conducted in a manner that comply

mpliance environment of the Bank. During the year 2021 Shari’ah
, 2021
2021
of the Bank carried out reviews of each type of transaction,

d Shari’ah Compliance. SCD kept Shari’ah board informed regarding
nditions of COVID in the country. A list of branches for Shari’ah
reviewed for Shari’ah compliance with strict compliance of COVID
nsured to comply with the approved list of the Shari’ah Board. In order
branch entities’ staff members; Shari’ah trainings were made
artment (L&D – HRG). Further RSBM/Head-SCD made surprise
e Bank are in vogue without any changes. All Fatawas &

d in the Bank in true letter and spirit.
ah Compliance has reviewed various Product documents and SB
mmercial Banking, 10 for SME Banking and there were 8
g Certificates related to products, 22 for Liability products which
4 each for Takaful, Guarantee & Treasury, 3 each for Musharakah
ack offices staff of the Bank For compliance with regulatory

e Islamic Banking training modules at Learning Management
spite the difficult conditions due to COVID, L&D was determined
D had Virtual classroom session with
ographical obstacles.
sh an effective and comprehensive Islamic Banking training
018, “Enhanced Training & Capacity Building Measures for Islamic
Pakistan, for the Bank’s front and back offices staff at all levels.
es during the year. Furthermore, alongside regulatory requirements
ed Islamic Banking & Finance Module and AAOIFI Shari’ah
during 2021.
Circular No. 01 of 2021, Dated: June 14, 2021, Shari'ah Non-
essential element of Bank’s overall Risk Management Framework. SCD
gement & Portfolio Review Committee of the Board as well as to
ed, a Management Committee with the title of Shari’ah Non-
O and representation form all Groups (Group Heads). TORs of
e being conducted. This committee is responsible for close monitoring
Shari’ah Non-Compliance events and transactions to the said
ofound efforts and commitment of the Bank’s Board of Directors

by the Shari’ah Board especially under the tough conditions of COVID.
ah Compliance checks, it is recommended that:

ry requirements. There should be a continuity of comprehensive
Shari’ah Trainings.
ate, Commercial & SME banking and it is strongly
f of Trade Operations, as some issues were found in its transactions
ps and Question & Answer Sessions from the Bank’s platform for
g awareness/ removing misconception about Islamic banking.
age the Islamic Microfinance due to its requirement in the

rate at grass-root level to facilitate micro level traders.
the Bank’s activities. As far as internal environment of the
recommended to follow the proper dress code strictly, which should
esty as required by the dictates of Shari’ah.
n Report, the External & Internal Shari’ah
tawa, Instructions and Guidelines issued

iii. The Bank has complied with directives, regulations, instructions and guidelines related to Shari’ah compliance issued by SBP in acco
rulings of SBP’s Shari’ah Advisory Committee.
iv. The Bank has a comprehensive mechanism in place to ensure Shari’ah Compliance in their overall operations.
v. As far as Charity fund is concerned, separate liability account (non-chequing) is opened in separate General Ledgers
for each type of Charity Fund Collection
a. Charity due to late payment,
b. Charity against other Non-Shariah compliant income and
c. Dividend purification amount.
Funds cumulated in above mentioned each type of “Charity Collection Fund Account” is maintained in Shari’ah Compliant
remunerative account at the discretion of Shari’ah Board/Resident Shari’ah Board Member.
Charity Fund is utilized for charitable, social welfare, religious, educational or any other purposes approved by Charity
Committee / Shari’ah Board.
In the year 2021 the addition in the amount of Charity was PKR 9.347 million from different heads which was
instructed to transfer to the Charity account.
Additions in Charity account during the year
- Received from customers against late payment
- Dividend purification amount
- Charity against other Non-Shari’ah compliant income
- Profit on charity saving account
Total additions in Charity account during the year
The Bank has disbursed the Charity amount to Shari’ah approved charitable organizations as per Bank’s charity policy and SBP’s guidelines. Detai
are available in the note # 19.2.1. Shari’ah Board would like to praise Shari’ah Compliance Department/RSBM for efforts made by SCD during tou
vi. The Bank has complied with the SBP instructions on profit and loss distribution and pool management.
vii. While the Bank is actively pursuing training of its human resources about various aspects of Islamic Banking & Finance through tra
sessions/seminars, however further improvement is required to enhance the level of awareness of Islamic Banking & Finance of the staff, manag
BOD through enhanced training mechanism for each level. The high level management and the BOD have made sincere efforts and appreciate
Shari’ah compliance in overall operations of the Bank.
viii. The Shari’ah Board has been provided adequate resources enabling it to discharge its duties effectively.
Shari’ah Board praises and acknowledged the efforts of Shari’ah Compliance Department/RSBM of the Bank that besides Shari’ah Compliance env
in regulatory inspection there was no instance regarding Non-compliance of regulatory requirements as far as Shari’ah Governance Framew
Shari’ah Board would like to take this opportunity to offer praise to Almighty ALLAH and seek his guidance and Tauwfeeq, and to express its wish
progress, development and prosperity of Islamic Banking, under the sincere efforts of senior management, and Islamic Banking industry in Pakistan
Professor Mufti Munib-ur-Rehman

Chairman Shari’ah Board
Mufti Syed Sabir Hussain Mufti Nadeem Iqbal
Resident Shari’ah Board Member Member Shari’ah Board
Date of Report: January 21, 2022
Sustainability & Corporate Social Responsibility
As a leader in the Pakistan banking sector, MCB Bank has a great legacy in looking after the preservation of the interests
of all our stakeholders. Our employees fully embody our values of service and quality.
Through careful evaluation and selection, the Bank selects and promotes projects and services that benefit the Pakistani economy and
effective manner. Particular emphasis is placed upon the need to promote environmental sustainability and social welfare.
Our policy
We ensure that CSR initiatives embody a vision of harmonious and sustainable development in Pakistani communities. Broadly speaking, the pillar
undertaken by the Bank ensure:
1. Compliance with relevant laws and regulations both in letter and spirit
2. Business operations with honesty and integrity
3. Engagement in social welfare activities that help strengthen communities and contribute towards the uplift of society
4. Support and promote financial inclusion and literacy
5. To build and maintain sound relationships with customers and other stakeholders through open and fair communication in order to con
sustainable image-building
6. Respect for culture, customs, history and laws as the Bank constantly searches for safer, cleaner and better practices that meet the gro
7. Minimize environmental footprint to coexist harmoniously whilst encouraging minimum wastage of resources
Our approach to sustainability
The Bank has focused on several key principles as an institution. It is committed towards fostering a better work place and cleaner environment th
initiatives. By committing to a culture of excellence, good governance, transparency and integrity, it ensures that all activities are condu
that is ethically responsible and beneficial for all stakeholders. MCB Bank has a well-defined Code of Ethics and Conduct polic
guideline for the behavior and ethics of employees.
Contribution to Economy & National Exchequer
MCB Bank has the second highest market capitalization in the banking industry. In 2021, the Bank paid approximately PKR 21.49 billio
income taxes to Government Treasury and collected over PKR 17.36 billion for the National Exchequer as withholding tax agent
provisions of Income Tax Ordinance 2001. In addition, the Bank has also paid PKR 1.66 billion in respect of sales tax and FED.
The contribution by the Bank to the national economy by way of value addition was PKR 72.67 billion, out of which
around PKR 16.94 Billion were distributed to employees and PKR 22.52 billion to shareholders.
Zakat is an essential component in delivering assistance to those most in need. The Bank bolstered the zakat collection efforts of promine
organisations such as Shaukat Khanum and Edhi Welfare Organisation through its communication mediums such as MCB Mobile Banki
Banking and ATM Screens. MCB Bank also contributed to the national exchequer in Zakat Deductions to the sum of PKR 530 million.
The Bank is making significant contribution to the development and growth of the country. An analysis of the Bank’s value
creation and allocation of value among key stakeholder groups is represented in Statement of Value Added.
Contributing to sustainable economic growth
MCB Bank uses its core business of banking to promote sustainable development in all the markets it operates in.
Key financial highlights

Key financial figures and related ratios are discussed in financial performance section.
Being a responsible organization:
As a responsible corporate citizen, MCB Bank is congnizant of its obligations towards conducting its business operations in a sustainable and so
way. MCB Bank’s foremost duty is to create a platform which reflects its values. The Bank has “Corporate Social Responsibility (CSR) Poli
approved by MCB Board of Directors. It envisions the strategic guidelines of incorporating CSR into the very core of all our business practices acro
Bank’s CSR activities are centrally monitored throughout to ensure that the Bank invests in the right causes that magnify the goodwill of the Bank
large. We do this by making the right investments in developing our human resources, protecting the interests of our customers, weighing environm
decision making and combating the scourge of corruption with our best practices.
Sustainability is therefore embedded in all policies of the Bank through direct and indirect means. All groups of the Bank work together to not only
employees regarding various aspects of corporate sustainability and social responsibility, but also to ensure that the strategic CSR vision is aligned
objectives.
The Bank’s policies therefore address these key aspects:
• Measures for Unforeseen Events and Crisis
• Internship Program for Persons with Disabilities
• Financial Literacy for Un-banked Population / Gender equality and equal opportunity employment
• Occupational Health and Safety
• Business Continuity Management
• Business Ethics and Anti-Corruption Measures
• Quality Checks and Mystery Shopping/ Service Council
• Customer Experience Management, Consumer Protection Measures and Grievance Handling
• Investing in communities
The Bank’s CSR goals are aligned with its operations for the betterment of all stakeholders. The aim of the Bank is to be well versed in CSR by bei
organization. The performance against sustainability and integration of various groups in achieving this are explained through this report.
Continued Measures to Combat Covid-19 Pandemic
While ensuring business-as-usual for bank’s customers, the safety and security of all employees and valued customers remained a key priority. The
helped us brave COVID-19 throughout the year:
• Arranging On-Premises COVID-19 Vaccination camps at Lahore and Karachi for bank staff and their family members.
• Ongoing effective implementation of and follow up on Regulator directed SOPs at all back office buildings and
branches (including but not limited to sanitizers, thermal guns, masks).
• Initiation of installation of face recognizing devices at major office buildings for attendance marking to minimize the
probability of physical interaction. 6 devices were installed at MCB House and MCB Centre, Lahore.
Internship Program for Persons with Disabilities

Talent, ability, skills, perseverance, commitment and loyalty are key personnel traits for any employee of a well reputed organization, w
assessed at first glance. We at MCB Bank try to find these characteristics through our expertise and available key indicato
interview & recruitment process. Persons with disabilities deserve the same chance to prove themselves but, too often, o
seen at first glance. Despite the fact that employees with disabilities possess skills and experiences that can offer the industry a comp
miss out on a vast untapped talent pool for the Bank. Hiring persons with disabilities conveys and promotes an inclusive work environme
been solving problems for many years and tend to bring a strong sense of loyalty to the workplace. Therefore, we at MCB Bank are starti
program for Persons with Disabilities along with the opportunity of permanent hiring upon satisfactory completion of internship tenure w
National Financial Literacy Program
MCB Bank is committed to increase financial literacy in society and towards that aim; we have significantly contributed to SBP
Literacy Program (NFLP), which is now in its 5th year. In FY 2020-21 alone, MCB was able to conduct 900 training sessions to enlighte
with a balanced 49% female participants coverage. These sessions have imbued financial literacy that is reflected in impressive p
account conversion rate of 83% (unbanked population).
Similarly during 1st quarter, 2021-22, MCB Bank has so far conducted 224 trainings, ensuring 93% female participation
with 95% account opening rate.
Occupational Health and Safety

Through a healthy and safe work environment, MCB Bank is staunch in preserving its vision for the well-being of its employees, custom
being compliant with relevant health and safety standards.
Every workplace is unique and the health and safety needs vary accordingly. Therefore, in order to be effective, the occupational health a
initiatives need to be wholeheartedly supported by every member that is directly and indirectly affected or is being affected by the occup
related factors of the organization’s workplace and its unique requirements.
The staff at MCB Bank, under the direction provided by the Management, has shown great commitment towards
constantly maintaining occupational health and safety standards.
Based on expert medical advice and international best practices with respect to COVID-19, effective workplace guidelines have
the safety of all staff members, and precautionary steps from preceding year were maintained wherever applicable to counter the risks ass
virus. The Bank also arranged a vaccination drive in different cities to safeguard its staff and their families against COVID-19. Other hea
include the declaration of all Bank buildings as “No Smoking Zones”, and the internal communication of messages regarding safeguardin
epidemic. First Aid Kits are available for circumstances involving emergency medical care within the Bank’s premises.
Moreover, effective controls, processes, surveillance and security equipment pertaining to the physical security of employees, customers
place while Facility Level Plan Regular Updates as to processes and procedures ensure readiness associated with possible eventualities. Tr
personnel at the Bank constantly supplement the controls, processes, and security equipment. A Safety and Security Audit of major iconic
external consultants has also been conducted, and the Bank took up best possible measures as per the consultants’ recommendations regarding the i
iconic buildings and branches of the Bank are equipped with modern fire safety, surveillance and security equipment (as applicable).
With respect to the facilitation of Persons with Disabilities (PWDs), Bank keeps on enhancing the availability of accessible infrastructure to PW
measures vis-à-vis construction of ramps at the entrances of branch/office premises, provision of stationery forms/documents in brail
would promote safety and convenience of current and future staff members and customers who face physical constraints.
Guidelines in the form of pictorial messages on Health and Safety are constantly circulated – whenever applicable – amongst the Bank st
customers through different available mediums for best safety and health practices at and outside work.
Business Continuity Management
MCB maintains high standards of Business Continuity Management (BCM) with regard to protecting the Bank against any potential business conti
the Bank can be described as a multifaceted approach comprising of policy, procedures and plans for developing, driving, leveraging, and protectin
at all times. Critical business processes, are therefore assessed time and again to ascertain the sustainability, adaptability and ingenuity for optimal b
operational outcomes.
The Board of Directors approves the BCM policy and plans and also oversees their implementation. Subsequent to this, as a key component of MC
vision to maintain a Business Continuity strategy, Business Continuity Management Committee (BCMC) of the Bank translates the policy into exec
as to ensure the existence of an effective framework for all critical processes and systems. This, in turn, facilitates the flow of activities th
safeguard the Bank during a business continuity event, and thus the BCM initiative serves as a way by which potential impacts on people, process a
positively funneled.
The dedicated BCM staff undertakes crisis management and contingency planning activities for the effective coordination of the BCM initiatives w
and overall direction being guided by the business strategy of the Bank. During the Covid-19 pandemic, the Bank continues to leverage its business
by tackling the impact of this catastrophe until the economy and the overall health situation improve. The Bank personnel are operationally ready a
this time owing to the strong commitment towards high quality customer and client service standards at all times. Special screening arrangements, t
social distance, periodic disinfection, and work-health advisories, along with the rationalization of seating arrangement for providing f
delivery methods have been made possible to sustain business and service continuity in light of Government of Pakistan and World H
precautionary advice.
Irrespective of the scope of disruption, the Bank management through its business continuity strategy, and the staff
through the appropriate tactical measures, continuously aims to keep satisfying the needs of its valued stakeholders.
Business Ethics and Anti-Corruption Measures

The Bank actively identifies and addresses possible risk factors through the implementation of policies and procedures designed to re
of such incidents. In this regard, it has fielded, alongside its Human Resource Policies and Procedures, a comprehensive “Code of Conduct
which is disseminated to staff for information and sign off. This document is also readily available to all staff on MCB Bank’s Intranet Portal.
The Bank continues to maintain a strong compliance culture across the board. Employees are expected to perform all tasks with diligence and ho
The Code of Conduct of the Bank comprehensively defines the values and minimum standards for ethical business conduct.
Employees ensure that all interactions with clients, competitors, business partners, government and regulatory authorities,
shareholders, or with one another, follow a vigorous ethical standard. The Bank's foremost effort is to ensure that the
conduct of the employees is impeccable with the help of guidelines that ensure compliance with all applicable laws and
regulations.
MCB Bank strives to ensure a friendly and harassment free environment for all employees. The policy for protection of women harassme
bank-wide every year. The Bank has zero tolerance for any form of harassment or discrimination as covered in the Bank's existing Code
The Disciplinary Action Committee (DAC) is tasked to address any violation of policies & procedures, acts of fraud & forgery,
and code of conduct, ethics and business practices, law of land and statutory regulations by an employee. These measures help us m
harmonious and efficient work environment in which employees are assured a nondiscriminatory, transparent, harassment free and
regardless of their caste, religion and gender.
Consumer Grievances Handling Mechanism Service Council
Service Council is a monthly forum, chaired by the President, which brings together key stakeholders from across the bank with a view to
forefront through thought leadership, collaborative discussions and creation of a clear service roadmap.
Customer Experience Management

Feedback is solicited from customers for all contact points via surveys and remedial actions are taken for identified areas.
The end goal of these measures is to be the most preferred bank in Pakistan.
Turnaround Time (TAT) Monitoring
Monitoring and evaluation of service indicators is part of the belief in increasing and retaining one’s customer base. In order to maintain
processes within the Bank, the Service Quality Division has devised several controllable measures at par with prevailing market practices
measure, a tolerance level along with a timeline is set. Similar to Branch Banking, indicators for Consumer Assets, Credit Cards, Bancas
Financing, MCB Lite, Contact Centre, Mobile Banking, Internet Banking and ATM Uptime are monitored on a monthly basis.
Quality Checks and Mystery Shopping
During 2021, 99% of total branches were monitored with respect to service parameters and protocols. The remaining branches were not
security concerns/remote locations and few were under renovation. Moreover, 942 branches were ‘Mystery Shopped’ by independen
and results of this activity were shared with management for further improvement.
Consumer Protection Measures
The Bank is committed to provide quality products and services to its customers. It maintains a privacy statement for the usage of its prod
Cards, ATM pins etc.
To ensure a culture of ‘Quality Customer Service’ the Bank has a dedicated Service Quality Division with the objective of strengthening
culture. Regular training sessions are conducted in all Circles, Call Centers and other front-end staff offices regarding ‘Service Excell
Satisfaction’.
Customer Grievance Handling
Bank considers complaints as opportunities for improvement and understands the link between complaint resolution and customer loyalty
complaints are a primary measure of customer dissatisfaction; thus, they should be taken seriously and staff should be encouraged t
to the forefront so that gaps can be identified and fixed.
Service Quality (SQ) function is the custodian of customers’ grievance handling and works in collaboration with all businesses
bank responsible for acknowledging, investigating, tracking, escalating and resolving customer complaints within specified turna
centralized complaint resolution team manages all customer complaints through a Complaint Management System. Currently, all o
points have access to this system so as to ensure that all complaints, whether verbal or written, are immediately captured in the system.
nes related to Shari’ah compliance issued by SBP in accordance with the
e in their overall operations.

ng) is opened in separate General Ledgers
is maintained in Shari’ah Compliant

mber.
r purposes approved by Charity
ferent heads which was
(Rupees in 000)
7.316
1.093
265
673
9.347
ons as per Bank’s charity policy and SBP’s guidelines. Details of Charity account
ance Department/RSBM for efforts made by SCD during tough times of COVID.
ution and pool management.
arious aspects of Islamic Banking & Finance through training
areness of Islamic Banking & Finance of the staff, management and the
ment and the BOD have made sincere efforts and appreciate the importance of
e its duties effectively.

ent/RSBM of the Bank that besides Shari’ah Compliance environment of the bank
ry requirements as far as Shari’ah Governance Framework is concerned.
and seek his guidance and Tauwfeeq, and to express its wishes for further
enior management, and Islamic Banking industry in Pakistan as a whole.
ur-Rehman
Board
Mufti Nadeem Iqbal
Member Shari’ah Board
bility
er the preservation of the interests
cts and services that benefit the Pakistani economy and society in the most
l sustainability and social welfare.
ment in Pakistani communities. Broadly speaking, the pillars of CSR activities
ibute towards the uplift of society
ders through open and fair communication in order to contribute towards
hes for safer, cleaner and better practices that meet the growing needs of society
imum wastage of resources
ds fostering a better work place and cleaner environment through its varied
cy and integrity, it ensures that all activities are conducted in a manner
s a well-defined Code of Ethics and Conduct policy that serves as a
try. In 2021, the Bank paid approximately PKR 21.49 billion on account of
billion for the National Exchequer as withholding tax agent under different
d PKR 1.66 billion in respect of sales tax and FED.
on was PKR 72.67 billion, out of which

ion to shareholders.
d. The Bank bolstered the zakat collection efforts of prominent public welfare
gh its communication mediums such as MCB Mobile Banking, MCB Internet
equer in Zakat Deductions to the sum of PKR 530 million.
owth of the country. An analysis of the Bank’s value

in Statement of Value Added.
pment in all the markets it operates in.
ection.
conducting its business operations in a sustainable and socially responsible

The Bank has “Corporate Social Responsibility (CSR) Policy”, which is
ting CSR into the very core of all our business practices across the Bank. The
ts in the right causes that magnify the goodwill of the Bank and our community at
protecting the interests of our customers, weighing environmental impact in our
ect means. All groups of the Bank work together to not only educate all
y, but also to ensure that the strategic CSR vision is aligned with operational
pportunity employment
Grievance Handling
ders. The aim of the Bank is to be well versed in CSR by being a sustainable
n achieving this are explained through this report.
mployees and valued customers remained a key priority. The following measures
bank staff and their family members.

ted SOPs at all back office buildings and
for attendance marking to minimize the

entre, Lahore.
el traits for any employee of a well reputed organization, which can’t be

tics through our expertise and available key indicators during job
the same chance to prove themselves but, too often, only their disability is
ess skills and experiences that can offer the industry a competitive edge, we can
abilities conveys and promotes an inclusive work environment as they also have
alty to the workplace. Therefore, we at MCB Bank are starting an Internship
nt hiring upon satisfactory completion of internship tenure with the Bank.
wards that aim; we have significantly contributed to SBP's National Financial

, MCB was able to conduct 900 training sessions to enlighten 26,875 participants,
mbued financial literacy that is reflected in impressive participant-to-
rainings, ensuring 93% female participation
erving its vision for the well-being of its employees, customers and visitors by
Therefore, in order to be effective, the occupational health and safety policy and
ctly and indirectly affected or is being affected by the occupational and health
ment, has shown great commitment towards
espect to COVID-19, effective workplace guidelines have been implemented for

were maintained wherever applicable to counter the risks associated with the
ard its staff and their families against COVID-19. Other health related steps
e internal communication of messages regarding safeguarding against Dengue
y medical care within the Bank’s premises.
ining to the physical security of employees, customers and visitors are in

s ensure readiness associated with possible eventualities. Trained security
uipment. A Safety and Security Audit of major iconic buildings through
ures as per the consultants’ recommendations regarding the iconic buildings. All
eillance and security equipment (as applicable).
ancing the availability of accessible infrastructure to PWDs through various

e premises, provision of stationery forms/documents in braille scripts etc. This
ers who face physical constraints.
y circulated – whenever applicable – amongst the Bank staff and also to

nd outside work.
d to protecting the Bank against any potential business continuity events. BCM at
and plans for developing, driving, leveraging, and protecting business continuity
in the sustainability, adaptability and ingenuity for optimal business and
lementation. Subsequent to this, as a key component of MCB's Management's
ommittee (BCMC) of the Bank translates the policy into executable action items so
systems. This, in turn, facilitates the flow of activities that are designed to
ves as a way by which potential impacts on people, process and technology are
vities for the effective coordination of the BCM initiatives with the necessary steps
vid-19 pandemic, the Bank continues to leverage its business continuity strength
tion improve. The Bank personnel are operationally ready and adaptive during
vice standards at all times. Special screening arrangements, the maintenance of
ationalization of seating arrangement for providing flexible service
ontinuity in light of Government of Pakistan and World Health Organization
nuity strategy, and the staff

ds of its valued stakeholders.
plementation of policies and procedures designed to reduce the possibility

olicies and Procedures, a comprehensive “Code of Conduct and Business Ethics”
y available to all staff on MCB Bank’s Intranet Portal.
es are expected to perform all tasks with diligence and honesty at all times.
mum standards for ethical business conduct.
ernment and regulatory authorities,

most effort is to ensure that the
re compliance with all applicable laws and
all employees. The policy for protection of women harassment is also circulated
nt or discrimination as covered in the Bank's existing Code of Conduct.
lation of policies & procedures, acts of fraud & forgery, breaches of discipline
regulations by an employee. These measures help us maintain a
sured a nondiscriminatory, transparent, harassment free and respectful atmosphere
ncil
ogether key stakeholders from across the bank with a view to place service on the
of a clear service roadmap.
and remedial actions are taken for identified areas.

ing and retaining one’s customer base. In order to maintain a strong hold on
controllable measures at par with prevailing market practices. Against each
king, indicators for Consumer Assets, Credit Cards, Bancassurance, Agriculture
g and ATM Uptime are monitored on a monthly basis.
arameters and protocols. The remaining branches were not visited owing to
eover, 942 branches were ‘Mystery Shopped’ by independent external agencies
ment.
ers. It maintains a privacy statement for the usage of its products i.e. Credit
Service Quality Division with the objective of strengthening the Bank’s service
nd other front-end staff offices regarding ‘Service Excellence’ & ‘Customer
s the link between complaint resolution and customer loyalty. We believe that
uld be taken seriously and staff should be encouraged to bring complaints
handling and works in collaboration with all businesses / functions of the

nd resolving customer complaints within specified turnaround times. A
s through a Complaint Management System. Currently, all our customer touch
verbal or written, are immediately captured in the system.
Following are the Channels through which complaints are received:
• MCB Contact Center
• MCB Branches
• MCB E-mail
• Social Media
• Letter/Fax
• Customer Service Centers
• Banking Mohtasib Secretariat
• State Bank of Pakistan
• Management Committee (MANCOM)
The Bank makes its best effort to ensure that resolution of complaints is comprehensive, appropriate and quick. The customer is kept informed on t
complaint, starting from complaint acknowledgement till its resolution. The escalation matrix for complaint resolution observed and designed in the
complaint, if not resolved within the specified turnaround time, gets escalated to the next senior level of management and keeps on esca
resolved.
Service Quality Division also performs in-depth qualitative and quantitative complaints analysis followed by suggestions
and recommendations in order to eliminate root causes of customer issues and drive continuous improvement.
During 2021, a total of 263,212 complaints were logged in the system out of which 262,778 complaints have been
resolved till date (resolution rate 99.84%).
There was a 73 % increase in total logged complaints in 2021 as compared to the previous year. Total complaints logged
during 2020 were 152,234.
Statement of Complaints Numbers
Total Complaints Received 263.212
Closed 262.778
Open 434
Average time taken for resolution
Total Login Details: Total
Complaints 263.212
Request/Queries/Reversals 11.430
Total 274.642
Investing in Communities
MCB Bank is committed to creating sustainable economic and social development for our stakeholders. All groups of the Bank work throughout to
opportunities that cover health, community, recycling, green banking and environment protection, education and empowerment etc.
Following areas were addressed by the Bank in 2021:

• Healthcare Sector
• Community Development & Sports
• International Outreach
• Education
• Equal Opportunity for All Employees
• Energy Conservation
• Environmental Protection
• Environmental Cleanliness & Protective Measures
• Green Banking
Healthcare Sector
The Bank seeks to support key initiatives that bolster the health care sector of Pakistan.
During 2021, the coronavirus pandemic was a key area of focus. To help ensure the health and safety of those fighting at the
crisis, the Bank donated one lac rupees to Murshid Hospital & Healthcare Centre for the treatment of low income and needy pat
MCB Bank also donated PKR 5 million to Nigahban Welfare Association to support financing of their new endoscopy
facility at Dr. Ruth KM PFAU Hospital Karachi.
MCB Bank deepened its commitment to major health initiatives throughout the year. Comprehensive marketing collateral was deployed
breast cancer in collaboration with Pink Ribbon. The awareness campaign also supported Pink Ribbon in the NGO’s efforts to raise
first ever Breast Cancer Hospital.
The Bank also helped generate awareness for organizations like Edhi Welfare Organization, Sundus Foundation and Shaukat Khanum M
Hospital with its internal and external communication through platforms such as MCB Mobile Banking, MCB Internet Banking, ATMs,
communication, especially during the holy month of Ramadan.
Community Development & Sports

MCB Bank understands that collective efforts are required to provide better facilities to our nation especially during the prolonged pandemic world
the Bank played its part by contributing PKR 1.5 million to Jahandad Society Community for Development for a campaign to distribute free food r
wage earners. The Bank also donated two lac rupees to Thardeep Rural Development Programe (TDRP) for the purchase of 200 mosquito nets to fa
vulnerable houses in rural areas.
The Bank recognizes the important role played by sports in the well-being and health of the Nation. In this regard, it focused on encouraging local t
make Pakistan’s name stand out in the world of sports. Major support by the Bank was extended to Pakistan’s porters for the K2 Hushe Expedition
provided the talent team from Gilgit with financial support of PKR 5 million and continuously covered their expedition on social media. Th
expedition was also covered by local newspapers, electronic and social mediums. This support was aimed to encourage local talent and promote ou
on the international scale, while promoting tourism in Pakistan.
During the year, the Government of Pakistan also organized the Pakistan Tourism Festival 2021 in Islamabad to promote Pakistan’s lan
facilities which gained local and international coverage. MCB Bank was also one of its sponsors for the event with a contribution of PKR 1 million
Furthermore, another milestone of the Bank to encourage healthy outdoor activities for youth and general public at large was achieved by contribut
to fund the development of Shuhada Park Chakwal. This park shall serve as a great recreational spot for young and old in Chakwal while commemo
to the martyrs of the region who sacrificed their lives for the nation.
MCB Bank also supported the 17th State Bank Governor‘s Cup Interbank Regional Cricket Tournament 2020-21.
International Outreach – The Dubai Expo 2020
One of the key global events during the year was the Dubai Expo that attracted an influx of visitors from around the world. This festival,
pandemic restrictions, provided a huge international platform to thriving industries. MCB Bank also participated in the Dubai Expo through a spons
million and the Bank presented itself as one of the leading financial institutions of Pakistan.
Education
Given the importance of the educational sector, MCB Bank fully supports its uplift. During 2021, the Bank donated an ambulance worth
Sadiq Public School Bahawalpur for their in house hospital for students and staff members.
Equal Opportunity for All Employees

The Bank prides itself on providing equal employment opportunities, free of discrimination; by implementing a methodical merit based n
selection process. The Bank successfully closed the year 2021 with permanent staff strength of 13,612 employees and 106 contractua
ratio of female staff members stood at 16.9% compared to 16.3% from the previous year.
Energy Conservation
MCB Bank is following a strict Policy to conserve energy, country-wide by exercising strict control over electricity lights
discipline whether in the Bank Branches or Principal offices. MCB Bank accords priority to exercising national obligations.
WWF certification of Green Banking to MCB Centre building is a big achievement which showcases our energy
conservation credentials through Solar energy, LED Lights, Paperless work culture and Water conservation.
The Bank also engages employees through its internal communication channels to follow best practices and initiatives to inculcate consc
energy.
Energy Saving Measures
MCB Bank is already following the policy of exercising strict controls over the use of excessive lights in its offices
/ buildings and restricts the switching-on of lights to needed areas only, whereas unrequired lights / equipment are
switched off in office areas / premises.
Natural light is utilized instead of artificial lights during day time wherever possible in office buildings. Window / blinds are
kept open to capture sunlight for heating during winters.
Almost all Bank buildings have been switched over to LED Lights. The post office / late sitting is discouraged to exercise
energy saving.
To exercise maximum control over building energy resources, a BULDING MANAGEMENT SYSTEM (BMS) is installed at M
Buildings i.e. MCB House Lahore, MCB Center Lahore and MCB Tower Karachi. The facility allows control of all the building fitted r
single point / place. Setting central heating / cooling system set points to maintain temperature at 24C degrees. Scheduled cl
conditioner filters and air ducts is ensured. Building Management System (BMS), Waste Heat Recovery (Cogeneration-System) and
system installed further support the conservation of energy.
MCB Tower Karachi Captive power generation from Gas Generators are being replaced with KE Electric Power. This action w
to savings of natural gas resources but will also result in less harmfull gas emissions in future.
The first of its class, waste heat from cogeneration plant is installed at one of MCB Bank's principal buildings i.e. MCB Centre,
heat of gas engine (1555 KW) is also installed at MCB Principal building, MCB Tower Karachi, to produce hot water to be used in chille
100 to 150 tons of extra cooling is generated through this process.
Environmental Cleanliness & Protective Measures

MCB Management emphasises on “clean working environment” and invests to hire the best “Janitorial Companies” in our three Principal Building
Lahore, MCB Centre Lahore and MCB Tower Karachi.
Waste is a major hazard to health of employees and aesthetics of the organizations. MCB focuses on waste reduction, reuse and recycling, which ar
environmental improvement and workforce productivity. Therefore, MCB Bank has segregated the building waste into recyclable and non-recyclab
converting waste into recycling mode.
MCB Bank is moving towards paperless banking and resource efficiency in our operations. Some of our notable initiatives include redu
environmental footprint in transportation and mobility of staff, energy efficiency in offices, greening of office premises and developmen
segregation of waste into dry and wet waste streams at source. We ensure that all our dry waste including paper and plastic streams are put b
reused in our corporate offices and bank branches through ethical recycling measures.
We ensure our wet waste including kitchen and organic materials are responsibly led to the landfills with minimum impact to the natural
this purpose, we use technology to monitor and track our sustainability drive to achieve zero waste objectives. To enhance awareness and behavior
and staff, formal and informal channels of corporate communications and campaigns are run to encourage staff to take actions, such as tree plantati
walks.
Partnership building is very important for environmental sustainability. Therefore, we are keen to develop impactful collaboration with
organizations such as Amal who are facilitating us to run MCB Bank’s Green Office Program and achieve Net Zero objectives for th
year. With this collaboration, we intend to set new trends for sustainable banking in Pakistan. Our mutual objectives are in line with circular econom
voluntary actions with full top management commitment.
Plantation within the commercial business premises / branches are encouraged by Senior Management. Emails through corporate communication
each staff to maintain high standard of cleanliness inside / outside office buildings / premises. The respective building Administrators &
coordinators periodically emphasize hygiene directives to maintain high quality cleanliness.
During the pandemic all SOPs are religiously being followed and monitored by the administration which resulted in low number of affec
centrally monitored by the help of the Bank’s CCTV security system. HR department strictly imposes a culture of discipline to punish any violation
Some of our efforts resulted in following impact:

• Collection of dry waste for ethical recycling = 11.24 tons
• Reduction in CO2 emissions = 548 tons
MCB Bank has taken these initiatives not only to meet legal requirements but as it’s corporate responsibility to address environmental concerns.
we remain ahead of our competitors as one of the first banks in Pakistan to adopt Green Banking Guidelines of the State Bank in letter
Management appreciates the cooperation it received from its employees and staff and the interest shown by stakeholders in adopting their resp
business practices.
e, appropriate and quick. The customer is kept informed on the status of their
matrix for complaint resolution observed and designed in the system is such that a
the next senior level of management and keeps on escalating further till
s analysis followed by suggestions

ontinuous improvement.
2,778 complaints have been
ous year. Total complaints logged
Percentage
–
99.84%
0.16%
13 Working Days
Contribution
96%
4%
100%
our stakeholders. All groups of the Bank work throughout to identify and execute
protection, education and empowerment etc.
of Pakistan.
help ensure the health and safety of those fighting at the frontline of the
care Centre for the treatment of low income and needy patients.
ion to support financing of their new endoscopy

the year. Comprehensive marketing collateral was deployed to raise awareness of
lso supported Pink Ribbon in the NGO’s efforts to raise funds for Pakistan’s
re Organization, Sundus Foundation and Shaukat Khanum Memorial Cancer

h as MCB Mobile Banking, MCB Internet Banking, ATMs, website, and internal
o our nation especially during the prolonged pandemic worldwide. During 2021,
nity for Development for a campaign to distribute free food ration packs to daily
Programe (TDRP) for the purchase of 200 mosquito nets to facilitate the dengue
of the Nation. In this regard, it focused on encouraging local talent and avenues to
s extended to Pakistan’s porters for the K2 Hushe Expedition 2021. The Bank
ontinuously covered their expedition on social media. The successful
support was aimed to encourage local talent and promote our competitive porters
ism Festival 2021 in Islamabad to promote Pakistan’s landscape and tourism

s sponsors for the event with a contribution of PKR 1 million.
r youth and general public at large was achieved by contributing PKR 57 million
reational spot for young and old in Chakwal while commemorating Bank’s tribute
onal Cricket Tournament 2020-21.

an influx of visitors from around the world. This festival, even during the
CB Bank also participated in the Dubai Expo through a sponsorship of PKR 50
Pakistan.
lift. During 2021, the Bank donated an ambulance worth PKR 1.5 million to
bers.
discrimination; by implementing a methodical merit based nondiscriminatory

nt staff strength of 13,612 employees and 106 contractual employees. The
the previous year.
exercising strict control over electricity lights

nk accords priority to exercising national obligations.
a big achievement which showcases our energy

culture and Water conservation.
nels to follow best practices and initiatives to inculcate consciousness to save
ntrols over the use of excessive lights in its offices

reas unrequired lights / equipment are
ever possible in office buildings. Window / blinds are
e post office / late sitting is discouraged to exercise

DING MANAGEMENT SYSTEM (BMS) is installed at MCB Bank Principal
arachi. The facility allows control of all the building fitted resources from a
s to maintain temperature at 24C degrees. Scheduled cleaning of air
m (BMS), Waste Heat Recovery (Cogeneration-System) and Motion sensor lights
are being replaced with KE Electric Power. This action will notably contribute
missions in future.
t one of MCB Bank's principal buildings i.e. MCB Centre, Lahore. A waste
MCB Tower Karachi, to produce hot water to be used in chiller with boiler. Almost
e best “Janitorial Companies” in our three Principal Buildings i.e. MCB House
CB focuses on waste reduction, reuse and recycling, which are essentials for
gregated the building waste into recyclable and non-recyclable waste, by
operations. Some of our notable initiatives include reduction of

in offices, greening of office premises and development of a culture of self-
all our dry waste including paper and plastic streams are put back in the loop and
sures.
bly led to the landfills with minimum impact to the natural environment. For
e zero waste objectives. To enhance awareness and behavior change of employees
re run to encourage staff to take actions, such as tree plantation and awareness
, we are keen to develop impactful collaboration with civil society

Green Office Program and achieve Net Zero objectives for the second consecutive
kistan. Our mutual objectives are in line with circular economy goals through
or Management. Emails through corporate communication are circulated to

ngs / premises. The respective building Administrators & building floor
eanliness.
the administration which resulted in low number of affected staff. The staff are
strictly imposes a culture of discipline to punish any violation in future.
orporate responsibility to address environmental concerns. We are proud that
opt Green Banking Guidelines of the State Bank in letter and spirit. MCB
and the interest shown by stakeholders in adopting their responsible and ethical
Certifications Acquired and International Standards
Adopted
World Wide Fund for Nature (WWF) - Green Office Certification
MCB has successfully attained ‘Green Office Certification’ from WWF for one of its iconic buildings; MCB Centre, Lahore. This
represents a landmark achievement in MCB’s pursuit of reducing the ecological footprint at its workplace and has consequently p
exclusive club of domestic banks that have met the requirements of this rigorous assessment and certification program.
International Standards of Sustainability adopted as per UN SDGs and UN Global Compact

UN SDG Indicator UN Global Impact
3: Good Health and

Well Being
5: Gender Equality 6: Elimination of

discrimination with respect to
employment.
7: Affordable and Clean 8: Initiatives to promote

Energy greater environmental
responsibility
9: Fostering
environment friendly practices
8: Decent Work and 3: Upholding freedom

Economic Growth of association
10: Working against
corruption.
9: Industry Innovation and

Infrastructure
12: Responsible Consumption
and Production
ired and International Standards
Green Office Certification
Office Certification’ from WWF for one of its iconic buildings; MCB Centre, Lahore. This certification
MCB’s pursuit of reducing the ecological footprint at its workplace and has consequently placed the Bank in an
met the requirements of this rigorous assessment and certification program.
opted as per UN SDGs and UN Global Compact

MCB Banks’ Alignment
In addition to supporting employees’ health and wellbeing, the Bank also actively engages in
community services within the health sector under its CSR Plan.
The detailed initiatives have been disclosed in the Sustainability &
Corporate Social Responsibility section of the Annual Report.
The Bank prides itself on providing equal employment opportunities that are free of
discrimination and are being implemented on a methodical and merit based selection
process:
• There has been a consistent growth in the number of female staff at the Bank (16.3% in
2020 to 16.9% in 2021).
• The representation of women in the senior management positions with one women staff
reporting to CEO and 12% reporting directly to the Head of Departments (HOD’s) who in
turn report to the CEO.
The Bank’s product portfolio has been deployed to foster the captioned goal by actively
promoting the MCB Ladies Account portfolio, wherein a total of 3,482 Accounts were
opened till 2021.
• MCB Bank has installed solar power systems in a few Branches/ ATMs to counter
Greenhouse Gas (GHG) Emissions. These solar installations augmented the clean
energy in the entire energy mix and led to the avoidance of Carbon Dioxide (CO2) emissions
to the environment.
• Green Banking Office has initiated the Own Impact Reduction initiative in
compliance with SBP’s Green Banking guidelines. A detailed baseline scenario
assessment was conducted to finalize the electricity/energy mix reduction targets for
branches. Initially 5% Energy Mix (KWHs)/Carbon Footprint reduction targets were
assigned to 65 branches as a pilot.
Despite constraints created by the COVID-19 outbreak, the Bank continued to effectively
play its role as a key service provider and intermediary in the financial market; hence,
making a significant contribution to the country’s economic growth:
• Created employment opportunities which led to the hiring of 2,075 employees.
• Contributed Rs. 21.5 billion to the national exchequer on account
of income taxes to the Government Treasury.
• 37 differently abled people working for the bank as permanent staff.
• Extended finance to all key economic segments including the SME and
Agriculture sector which cumulatively contribute above 50% to the domestic GDP.
• Played a central role in supporting Governments’ and Central Banks key
pandemic responses for credit extension and uninterrupted provision of essential banking
services to the general public.
The Bank continues to actively contribute to the Central Banks cause of improving
financial inclusion in the country by extending branch outreach and customer digital
touchpoints.
MCB’s Green Banking Policy lays the foundation for safeguarding the Bank against
environmental vulnerabilities and playing its due role in transforming the country towards a
low carbon and climate resilient economy.
The detailed policy has been disclosed in the Green Banking section of
the Annual Report.
A few G+een Initiatives have be•ri œidertak•n by ßtCB Bank aæ mœifiozied bełow•
Envimnme»tal Risk Management System
The Environrrtøntal RiM A ment ef Ctistozners who approach lhe Bank for a
cred't facIIi\y is now a cotrporient of lhe Credlt Agpróval Process. and this.
ass8ssfrie is carrled crut on 9n ongo@ boä at the \irne ol annual renewal oï a
customs-1 cr tiiî
Green Products/Services
MCB ink Nos con inued rts efforts to integrate tŁ+e. inability inlo ins
prooucts ano œrvices. Such products involve anvircrvnenl-lnendly features
in' luding tenable Energy, Modërn Drip/l2prinXle •rñgation Ł+î•çhniquas ø
c. Credit hard customers of the Baok are being offered household
arærgy-efficient1 products via an aflórdable Ìristallmer î plan. In addition, the
çfien\s are alœ provlcled dvi aa*n/ serves on x'aiI'ng Greeti Fi ïance for
Erivironmwialy-Frie uly and/or Renewable Energy Prof.
ŁJCB Bank has ins\a!Ied solar power syste‹ris n a few Braricha
/ATMs to oo•unter Greenhouse Gas ( iHG] Em*sstoo . These solar
instailaîions augmented îhe.clean energy in he eniire energy Mix erid aÓ to łhe
9voidsr•ce ol Carbort Dîoxie (CO2ł wn.6 fizns tò îhe anvironmen4.
Green Banking Web-Page
A dœt.icated wecipage on Greeri Banking under the heading st ’Social and
Env'ronme taJ pesoonsihiltty nas been developer on ihe MCB Corporate Weosite.
Thìs weagage has facilitated che Ok in farms of updating łakaholders regwding
Groeo lnitiativas
un6ertaxen by the Bank.
k aæ mœifiozied bełow•
Paperless Operations
PCB BanK is opting for ways and mechanisms by vhïch te reduce, ir not erttireły
ełimineta, the consi mption of fx >er and otrw associated rasources rŁ'+ough the
utœnetion çf qaper•ba 4td worirfIows arid gro¢esses. A New iniriałive have
been undertaken for ‹úe ełiminaîion MQ*or reductÓn oł apør coilsumption
irx"Iud1ng out not limited to ne
the inłrod mtion of veu-oased dispute Cls m filing i iitily îor all Alternate
Delivery Channels, a d he deployment oï c fr-øłion•ba ed w flow'
sy$tem6 for gradual mig'ration tõ ards a pape‹ress envi onmenf. Moreover, lła
&vk has ‹nip!emenIed a value adda‹t feature to its AIMS fry enabiing lie
ation for making. fìnanc‹ai trar<actÒns w 0muI ieceipl w1nio‹rts.
Green Awareness Campaign
Green Axvaeiess Campaign has been łxepareo to commemorate ronrr•enî related
annual days such as Wo d Winter Day, Moths North Day, arid Wortó
Environmœr Oay. 1T›e commemoration incudes dñenmn JÅsm»ineGon
níedums s«cfi es anmmfk-6aseo Emai|s and Sîandee Displays ał difłerenł
buildings oł Cha Bank.
Similady, in order to increase awareness amongst the custom°.re. special wa-based
b'an-ners web prepared and displayed or W MCB Corporctø Is a-nd ATM
spleens. Furthørmõre, customized animated anworM see alœ displayed on lie MC•B
Official social mede psg s.ill ding Faced, Únkedln and Twitter.
Identifying our key stakeholders
We are committed to understanding each stakeholder’s concerns and expectations and then applying the relevant inputs to our decision-making to e
creation. We aggregate our material stakeholders in terms of their level of influence on us and our impact on them. Based on this broad-base
prioritize these relationships and while we engage with all our stakeholders, we have identified our key stakeholders as those with who
collaborate with, consult and involve and as such have developed goals for each.
Stakeholder Engagement
The development of sustained stakeholder relationships is paramount to the performance of any institution. From short term assessments
strategic relationship building, ‘Stakeholders’ Engagement’ lies at the core of our business practices to promote improved risk management, c
regulatory and lender requirements in addition to overall growth of the Bank.
In achieving and entrenching its integrated approach to sustainability, MCB Bank takes a highly collaborative approach towards ensuring maximum
and input by all its stakeholders.
At MCB, stakeholder engagement involves far more than merely communicating with its various stakeholder groups. The Bank regards its stakehol
makes every effort to use all possible mediums to ensure that they are abreast with disclosures, aware of forums to provide valuable input and feedb
Bank to grow, strengthen relations and meet expectations to serve better.
The following tables provide an overview of stakeholder engagements at MCB Bank
Stakeholders Stakeholder worthiness and reasons of Engagement frequency

engagement
Institutional Investors / Shareholders / • To deliver relevant and timeous Quarterly, semi-annually and
Analysts information to existing and annually
potential shareholders When the need arises
• To keep shareholders posted to ensure
that our shares are traded at a fair value
• To ensure that the image of the
bank and the trust placed in by our
valuable shareholders, continues to
improve, thereby minimizing the
potential for reputational risks
Employees • Integral to deliver strategic Annual

objectives When the need arises
• Our most important and valued
ambassador
• To ensure that we remain an
employer of choice by providing a
safe, positive and inspiring
working environment
• To understand and respond the needs
and concerns of our staff members
• To educate our staff regarding
strategic direction and to
communicate the pertinent information
relating to bank activities
• Continuously encouraging
employees and working towards
creating a healthy, ethical and
supportive work environment
hen applying the relevant inputs to our decision-making to ensure sustained value
n us and our impact on them. Based on this broad-based assessment, we
have identified our key stakeholders as those with whom we need to
rmance of any institution. From short term assessments to long-term

business practices to promote improved risk management, compliance with
a highly collaborative approach towards ensuring maximum interaction with,
ts various stakeholder groups. The Bank regards its stakeholders as partners and
losures, aware of forums to provide valuable input and feedback that can help the
Mode of consultation / interaction
• Quarter, semi-annual and annual

financial statements
• Annual General Meeting
• Participation in local and
international road shows
• Press releases / Media
announcements
• Communications and
answering investor / analyst questions
Investing in a wide range of training

programs for every member of the
human capital to ensure personal
and professional development.
In addition to the regular

communication that takes place
with direct managers and teams
through a range of interactive
channels, specific employees
engagement include:
• Regular electronic and printed

newsletters
• Compliance letters
• Annual conference
• Strategy sessions
• Grievance reporting
procedure
• One Bank, One Team sessions
with senior management
Stakeholders Stakeholder worthiness and reasons of Engagement frequency
engagement
Customers • To win and maintain Regular interaction of
customers by developing and customers through branch staff
providing products and services to Dependent on customers’ specific
improve the brand. requirements
• To understand the growing financial
services needs of our customers.
• To provide better solution and
advice to our customers’ financial
requirements
• To ensure accuracy of our
customers respective information.
• Integral to achieve strategic
objectives
Suppliers/Service Providers • Adhere to proper Routine basis/ When the need arises
procurement regulations while
maintaining a good business
relationships with the service providers
Regulator • To maintain open, honest and Daily, weekly, quarterly When the need
transparent relationships with regulator arises
• To ensure meticulous
compliance with legal and regulatory
requirements
• Develop legislation and policies
that impact the environment in
which we operate
Communities • To have best collaboration with When the need arises

our community for delivering
our social responsibilities
• To obtain input from
communities regarding key focus areas
• To create awareness of our
integrated sustainability
commitments and initiatives
• Conducting business without
causing disruptions in the society
Government • To build strong and When the need arises or on request

constructive relationship with by either side
government, both as a partner in the
development of our country and as
a current / potential client
• To contribute in legislative
development for evolution in our
activities and operations
• To endorse our commitments for
public sector business development
Media • To acknowledge the role of media When the need arises
as a channel to communicate with
relevant stakeholders and public at
large
Investors Relations section on Corporate Website

The management of the Bank provides equal and fair treatment to all investors/shareholders through transparent investor
relations, increased awareness, effective communication, and prompt resolution of investors’/ shareholders’ complaints.
The Bank disseminates information to its investors and shareholders through a mix of information exchange platforms, including its
The idea behind the Bank’s investor engagement through these briefings is to give the right perspective of the business
affairs of the Bank to the investors (both existing and potential) which help them in making their investment decisions.
The Bank conducts quarterly analyst briefings in order to share details pertaining to results announced and to respond
to any queries of analysts relating to results and future prospects.
Other than the quarterly analysts briefing, business analysts are provided with information and briefings as and when they require with
the confidentiality. Face to face discussions have also been arranged with foreign analysts as and when required. The briefing further
transparent and continuously evolving stakeholders’ engagement approach.
Briefing is being held as teleconferencing and during the year four analysts briefing were held on following dates;
Results Date
Annual Results 2020 February 18, 2021
1st Quarter Results 2021 April 28, 2021
2nd Quarter Results 2021 August 24, 2021
3rd Quarter Results 2021 November 09, 2021
In addition to the above mentioned regular teleconferencing sessions, during the year Bank also held Corporate Analyst Briefing Session which w
24 2021 & November 09, 2021. Due to Covid-19 precautionary measures issued from time to time by local authorities, Corporate Brief
held remotely. CFO of the bank presented a detailed analysis of Bank’s performance along with future outlook; session was followed b
Issues Raised in the Last Annual General Meeting (AGM)

The proceedings of the 73rd Annual General Meeting (AGM) of the shareholders of MCB Bank Limited was held on Saturday
at 11:00 am, through a video link facility. As per the notice of AGM circulated to members and published in the newspapers, the m
scheduled to be held physically at Nishat Hotel, Emporium Mall, Lahore; with the proceedings’ to be also covered by a video link. Howe
ban imposed on all types of indoor gatherings by the Government of Punjab due to the imminent threat of COVID-19 o
meeting convened digitally through a video link.
Mian Mohammad Mansha, the Chairman of the Board of Directors, presided over the meeting. The meeting was attended by Board mem
including the Chief Executive Officer along with the Chief Financial Officer (CFO) and the Company Secretary; through a video l
The Company Secretary invited the CFO to present key highlights of the audited financial statements for the year 2020 and e
salient features of the Banks’ performance. There were no significant issues raised in the last AGM that are pending impleme
the shareholders while appreciating the overall growth in Bank’s financial performance sought some general clarifications an
progress of the Bank.
One of the shareholders enquired about the reasons for significant increase reported in the net provision charge for the year. R
shareholders query, the CFO updated the forum that although the management has been proactively monitoring the evolving macroecono
scenario amidst the COVID-19 outbreak, however, the eventual impact from the outbreak still remains extremely uncertain and largely d
pandemics’ pathway given the elevated global cases, emergence of new virus strains and the lingering reservations about the roll-out of v
given the apprehensive outlook for domestic growth that could put a liquidity strain on the solvency of borrowers and impact their repaym
Bank has exercised prudence and recognized a general provision charge of Rs. 4.0 billion during the year under review.
The CEO informed the shareholders that the Bank remains a well-capitalized institution with a capital base well above the regulatory lim
requirements. He also mentioned that the Bank had the highest cash dividend per share in the industry and also remained one of the prim
Pakistani equity markets which as appropriately reflected in its highest market capitalization in the financial institution category a
2020.
The shareholders appreciated the services of the Board of Directors for its visionary approach and collective wisdom
reflecting in the sound financial performance of the Bank.
Following businesses were also discussed during the AGM:
• Consideration and approval of Annual Accounts of 2020
• Winding Up of Bank’s Subsidiary - M/s Financial & Management Services (Pvt.) Limited
• Approval of Final Cash dividend – 2020
• Appointment of External Auditors
Mode of consultation / interaction
• Spreading the geographical

boundaries through opening more
branches across the country.
• Continuously innovating in
product suite and operational
process to meet customer requirements
in the most efficient manner.
• Interaction through our branches,
relationship managers, call
centers, social media, surveys and
various advertising activities
• Rigorously following internal

procurement policy and upgrading
the policy regularly to ensure
strong control and fair treatment of
suppliers.
• Active engagement with regulator

improves level of compliance
these engagements include
meetings with representative of
regulator and written
communications on need basis
• One-on-one Meetings
• Submission of applicable statutory
returns Responding /
enquiring various queries / information
The Bank actively participates in

various social work initiatives as part
of its corporate social
responsibility. Being a conscientious
member of the corporate community,
the bank contributes to various
social and charitable causes including
towards health, education and social
sectors.
The bank is consistent in support

for community development
projects and interaction with a wide
range of non-profit organizations.
Enhancing financial access to

marginalized population and most
importantly, adding value to the society
by being a good and transparent
corporate citizen.
• Understanding and ensuring all

legal and regulatory requirements
are complied with
• Engaging with the
government to address matters
impacting business
• Advertisements through print,
electronic, social media, website,
interviews and capacity building
seminars
ebsite
ders through transparent investor
stors’/ shareholders’ complaints.
mix of information exchange platforms, including its corporate website, maintained in both English and Urdu Languages under the applicable reg
ive the right perspective of the business

king their investment decisions.
g to results announced and to respond
nformation and briefings as and when they require without compromising

gn analysts as and when required. The briefing further envisages our
fing were held on following dates;

ank also held Corporate Analyst Briefing Session which was held on August
d from time to time by local authorities, Corporate Briefing Sessions were
ance along with future outlook; session was followed by Q & A session.
ral Meeting (AGM)

areholders of MCB Bank Limited was held on Saturday, March 27, 2021
culated to members and published in the newspapers, the meeting was initially
h the proceedings’ to be also covered by a video link. However, in view of the
Punjab due to the imminent threat of COVID-19 outbreak, the
over the meeting. The meeting was attended by Board members of the Bank
ficer (CFO) and the Company Secretary; through a video link.
he audited financial statements for the year 2020 and elucidate on the
ssues raised in the last AGM that are pending implementation, however,
cial performance sought some general clarifications and comments on the
rease reported in the net provision charge for the year. Responding to the
nt has been proactively monitoring the evolving macroeconomic and operating
the outbreak still remains extremely uncertain and largely dependent on the
s strains and the lingering reservations about the roll-out of vaccines. Hence,
y strain on the solvency of borrowers and impact their repayment capacities, the
s. 4.0 billion during the year under review.
institution with a capital base well above the regulatory limits and Basel capital
per share in the industry and also remained one of the prime stocks traded in the
arket capitalization in the financial institution category as at December 31,
sionary approach and collective wisdom
Services (Pvt.) Limited

Statement of Value Added
2021 2020
PKR (mln) % PKR (mln) %
Value Added
Net interest income 63.987 71.334

Non interest income 20.074 18.136
Operating expenses excluding staff costs,
depreciation, amortization (16.215) (14.420)
Provision against advances, investments & others 4.823 (7.313)
Value added available for distribution 72.669 67.737
Distribution of value added:

To employees
Remuneration, provident fund and other benefits 16.940 23.31% 15.806
To government
Income tax 21.178 29.14% 19.212
To providers of capital
Cash dividends to shareholders 22.516 30.98% 23.701
To Society
Donations 8 0.01% 113
To expansion and growth
Depreciation, amortization, Retained Earnings & Reserves 12.027 16.55% 8.906

72.669 100% 67.737
2021 2020
To Society To employees To providers of capital To Society To employees
To expansion and growth To government To expansion and growth To government
23%
29%
17%
1%
31%
23%
13%
0.17%
35%
%
23.33%
28.36%
34.99%
0.17%
13.15%
100%
To providers of capital
29%
35%
• The Code of Conduct spells out the behaviour expected
from employees of MCB Bank Limited (MCB), reflecting fairness,
transparency and accountability. The Code of Conduct gives a quick
reference check for acceptable business practices.
• However, the Code of Conduct does not replace defined and
comprehensive HR Policies of MCB Bank Limited.
• MCB Bank is committed to conduct its business in accordance with
the applicable laws, rules and regulations as defined by the State
Bank of Pakistan by adhering to high standards of business ethics which
reflect our corporate values.
• Adherence to the Code of conduct is mandatory for all employees of
MCB Bank Ltd-Pakistan.
In line with code of conduct the employees of the bank shall
Abidance of Laws / Rules
• Conform to and abide by the Bank rules and policies, wherever we
operate and obey all lawful orders and directives which may from
time to time be given by any person or persons under whose
jurisdiction, superintendence or control, the persona will, for the time
being, be placed. To undertake at all times compliance with and
observation of all applicable laws, regulations and Bank policies, wherever
the Bank operates.
Integrity
• Conduct the highest standards of ethics, professional integrity and
dignity in all dealings with the public, customers, investors,
employees, and government officials, State Bank of Pakistan and
fellow Bankers and non-engagement in acts discreditable to the Bank,
profession and nation
• In case of awareness of any breaches of laws and regulations,
frauds and other criminal activities or other similar serious incidents that
might affect the interests of the Bank, the same shall be informed to the
senior management immediately, including any issue, which may pose a
reputational risk.
• Not use this policy to raise grievances or act in bad faith against
colleagues.
Professionalism
• Serve the Bank honestly and faithfully and strictly serve the Bank
affairs and the affairs of its constituents, use utmost endeavor to
promote the interest and goodwill of the Bank and show courtesy and
attention
in all transactions/ correspondence with officers of
Government, State Bank of Pakistan, other Banks & Financial
Institutions, other establishments dealing with the Bank, the Bank constituents
and the public.
• In case the employment is terminated for any reason, all rights to property
and information generated or obtained as part of employment relationship will
remain the exclusive property of MCB.
• Comply with the laws and regulations on money laundering and fraud
prevention and immediate reporting of all suspicions of money laundering as
per the guidelines provided in CDD & AML/ CFT Handbook and Anti-fraud
Framework Policy for the Management and the staff.
• Not to engage in any act of violation of CDD & AML / CFT Handbook’s
guidelines given by the State Bank of Pakistan and be extremely vigilant in
protecting MCB Bank from being misused by anyone to launder money by
violating these guidelines.
• Ensure that all customer complaints are resolved quickly, fairly and
recorded appropriately.
Conflict of Interest
•voAid all such circumstances in which there is personal conflict of interest, or
may appear to be in conflict, with the interest of the Bank or its customers.
• In case of potential conflict of interest, the same should be declared
immediately to senior management, action is taken to resolve and manage it in
open manner and resolving the conflict of interest on their own would be
avoided.
• Report to the Company Secretary within three (3) days about any sale and
purchase of MCB shares (own or spouse) in case the annual basic salary
exceeds Rs. 500,000/-.
• Not buy, sell or take position in any manner regarding MCB Bank shares
during Closed Period, as announced by Company Secretary.
Relatives and close friends
• Avoid conflict of interest arising, where an employee makes or
participates in a decision which affects another person with whom one has a
personal relationship (such as a relative, parent, spouse, cousin, close
friend or personal associate). In cases where a conflict may arise,
employees must advise their immediate line manager. Wherever possible,
employees should disqualify themselves from dealing with those persons in
such situations.
Political Participation
• Not obtain membership of any political party, or take part in,
subscribing in aid of, or assist in any way, any political movement in or
outside of Pakistan or relating to the affairs of Pakistan.
• Not express views detrimental to the ideology, sovereignty or
integrity of Pakistan.
• Not canvass or otherwise interfere or use influence in
connection with or take part in any election as a candidate to a
legislative/local body or issue an address to the electorate whether in
Pakistan or elsewhere. However, the right to vote can be exercised.
• Not bring or attempt to bring political or other pressure/
influence directly or indirectly to bear on the authorities/ superior
officers or indulge in derogatory pamphleteering, contribute, or
write letters to the newspapers, anonymously or in own name
contribute or appear in media, with an intent to induce the authority/
superior officers to act in a manner inconsistent with rules, in
respect of any matter relating to appointment, promotion, transfer,
punishment, retirement or for any other conditions of service of
employment.
Financial Interest
• Not indulge in any of the following activities without prior
permission of competent authority (GH - HRM for VP & below and
President for SVP & Above):
• Borrow money from or in any way place myself under pecuniary
obligation to a broker or moneylender or anyone, including but not
limited to any firm, company or person having dealings with the Bank.
• Buy or sell stock, shares or securities of any description without funds
to meet the full cost in the case of purchase or scripts for delivery
in the case of sale. However, a bona-fide investment of own funds
in such stocks, shares and securities as wished can be made.
• Lend money in private capacity to a constituent of the Bank or have
personal dealings with a constituent in the purchase or sale of bills
of exchange, Government paper or any other securities.
• Act as agent for an insurance company otherwise than as agent for or
on behalf of the Bank.
• Be connected with the formation or management of a
joint stock company or hold office of a director.
• Engage in any other commercial business or pursuit, either on own
account or as agent for another or others.
• Engage in any outside employment or office whether
stipendiary or honorary during my employment with MCB Bank.
• Undertake part-time work for a private or public body or
private person, or accept fee thereof.
• Any kind of trading advice concerning the securities of MCB Bank or to third
parties even when such director, officer or employee does not possess material
nonpublic information about MCB Bank.
• In reviewing or approving a loan application from a corporation wherein holding
office as director, partner or guarantor.
Gift, Favors Etc.
• Not use the employment status to seek personal gain from those doing business or
seeking to do business with MCB, nor accept such gain if offered.
• Not accept any gift, favors, entertainment or other benefit the size or
frequency of which exceeds normal business contacts from clients, stakeholders,
colleagues of the Bank or from persons likely to have dealings with the Bank
including candidates for employment in the Bank.
• Reporting in writing to immediate supervisor within three working days in case any
sizeable gift / favor is received from any third parties.
Confidentiality
• Maintain the privacy and confidentiality (during the course of employment and
after its termination for whatever reason), of all the information acquired during
the course of professional activities and refrain from disclosing the same unless
otherwise required by statutory authorities / law. Inside information about Bank’s
customers/affairs including customer data, product manuals, confidential financial
and business information of the Bank etc., shall not be used for own gain or for that of
others either directly or indirectly.
• Not trade in relevant investments or indulge in giving tips to another person or
dealing on behalf of relatives, friends or any other third parties, whilst in possession of non-
public price sensitive information.
• Not disclose to a customer or customers or to any irrelevant quarter(s) that a
suspicious transaction or related information is being reported for investigation unless
any law enforcement agency requires any lawful information. (Only authorized
representatives can pass on information to Law enforcing agencies after obtaining
clearance on information content from relevant GH / BH(for RBG) and LAG
representative).
Data Security
• Only access or update the system and data according to the authority
given by the Bank. Any unauthorized access or updation will hold the
person liable for a penal action by the Bank in accordance with HR
policies.
• Not compromise access to system by communicating
identification and /or passwords to others.
• Ensure that material non-public information is secure. Not discuss such
information in public places where it can be overheard, such as elevators,
restaurants, taxis and airplanes.
Communication / Contact with Media
• Be truthful in all advertisings and promotional efforts and to
publish only accurate information about the Bank operations under
valid authority as prescribed in the Bank policy.
• Not give any kind of confidential information or interview on behalf
of the Bank or in my official capacity in the print/electronic media or
road / talk shows or participate or act in television/stage plays or in any
media or cinema without having permission from the Head of Corporate
Communication & GH - HRM.
Speak Up
• To inform line management & HR of any perceived wrong
doing / malpractice at any level, as an obligation to report it under the Bank
whistle blowing program / policy.
Business / Work Ethics
• Respect fellow colleagues and work as a team. To be, at all times,
courteous and not to let any personal differences affect work.
Customer Centricity
•reaTt every customer of the Bank with respect and courtesy.
• Be responsive to customer complaints, and to feedback on products and
services.
• Provide relevant, complete and clear information to customers to the
best of one’s knowledge.
• Sell products or services to customers that are within the legitimate scope
of one’s job.
• Remain update with the latest products of the Bank, and provide all
relevant information to the customers.
Personal Responsibility
• Safeguard as a personal responsibility, both the tangible and intangible assets
of MCB and its customer(s) that are under personal control and not to use Bank
assets for personal benefits except where permitted by MCB.
• Not use any Bank facilities including a car or telephone to promote trade
union activities, or carry weapons into Bank premises unless so
authorized by the management, or to carry on trade union activities
during office hours, or in banking premises, or subject Bank officials to
physical harassment or abuse.
Punctuality
• Ensure attendance and punctuality as per HR policies, departmental
requirements & job standards and for any absence during working
hours obtain written permission of the immediate supervisor.
Dress Code
• Maintain a standard of personal hygiene / neatness and follow MCB
Bank dress code policy in true spirit to promote a professional work
environment during office hours.
International Travel
• Be culturally sensitive to the socio-cultural norms of the host country.
• Represent Country and organization by conforming to high standards of
personal and professional ethics at all times.
Work Environment
• Cooperate in maintaining a healthy and productive work environment and
not get engaged in the selling, manufacturing and distributing using any
illegal substance or being under the influence of illegal drugs or alcohol
while on the job.
• Ensure strict adherence to all policies of the Bank, as announced by the
management from time to time and contribute utmost effort in maintaining a
conductive work environment.
Usage of Communication Tools
• Ensure strict adherence to the use of internet, emails
and telephone provided by the Bank for official use only.
• Never use the Bank system to transmit or receive electronic images or
text containing ethnic slurs, social epithets or anything that might be
construed as harassing, offensive or insulting to others.
• Never utilize Bank system to disseminate any material
detrimental to the ideology, sovereignty or integrity of Pakistan.
• Never indulge and /or utilize the Bank system for supporting any
terrorist activity within and / or outside Pakistan.
Reporting and Accountability
• Maintain all books, data, information and records with scrupulous
integrity, reflecting in an accurate and timely manner and to ensure
that all business transactions are reported and documented correctly
according to the business practices. Ensure facts are not misinterpreted
/ misused /tampered pertaining to:
• Issuing an incorrect account statement / any other information for
any customer or fellow employees / management.
• Placing a fake claim for reimbursement of any expenses (including
medical insurance).
• Unrecorded or recorded funds / assets or any other
Bank’s documents.
• Posting of false, artificial or misleading entries in the
books or record of the Bank.
• Intimate line management and HRM of any changes in the personal
circumstances relating to service tenure and other related benefits,
provided by the Bank.
Ethics for working with Female Employees
Gender Discrimination In Employment Training / Promotion
• Ensure adherence to the guidelines of MCB Bank’s non-
discrimination on the basis of gender which limits the individual’s right
of recruitment, future training, promotion and any other related
benefits.
Zero Tolerance for Favoritism or Discrimination
• Not be a part of any undue favor / discriminatory advantage to
any colleague / subordinate staff.
Personal Space
• No right to intrude on the personal space / close proximity of any
staff particularly females.
Female Staff/Employee Privacy
• Recognize that female staff have more privacy and sensitivity
needs in keeping with our cultural norms. Therefore, behaviour
towards them must reflect that sensitivity, respect and consideration.
Harassment Against Women
• Any type of harassment is not acceptable at MCB Bank. Harassment occurs when
someone’s actions or words, based on gender, race, sexuality, caste, creed, and color are
unwelcome, violate another person’s dignity and creates a hostile environment.
(Reference to HR Policy Manual section 6, 6.2.5, Protection against harassment of women
at the workplace Act, 2010)
• Accordingly, not engage in harassment in any form. It may include objectionable
epithets, threatened or actual physical harm and intimidating conduct directed against the
individual that negatively affects the performance and well-being of an individual.
Sexual Harassment
• Keeping in mind the Bank’s policy with reference to the Protection against
harassment of Women at the Workplace Act, 2010, adherence to all guidelines given by
the Bank.
Communication
• Not send sexually explicit or offensive communications and respect the privacy of fellow
employee especially female employees. Following factors should be adhered to in order to
maintain effective communication and ethical standards:
1. Not send any electronic mail that is abusive or threatens the safety of an
Individual(s).
2. Always use a professional tone in all official
communications.
3. Be careful when using sarcasm and humor
Workplace bullying
Refrain from any form of Workplace bullying:
• Shouting or swearing at an employee or otherwise verbally abusing him / her.
• Singling out an employee for excessive criticism/public humiliation.
• Excluding an employee from company activities and undermining his / her work
contributions.
• Language or actions that embarrass or humiliate an employee.
• Inappropriate practical jokes, especially if they are targeted.
Insider Trading
Comply with insider trading policy and to abide by all guidelines provided in the
policy.
Statement on Internal Controls
The internal control structure of MCB Bank Limited (Bank)
comprises the Board of Directors, Senior Management, Risk
Management Group, Financial Control Group, Operations
Group, Compliance & Controls Group, Audit & Risk Assets Review
(Audit & RAR) Group, Internal Control Units (ICUs) within all
Groups and the controls & self- assessment procedures implemented
at other functions within the Bank. The Bank’s management is responsible
to establish and maintain an adequate and effective system of internal
controls and procedures under the policies approved by the Board. The
management is also responsible for evaluating effectiveness of the
Bank’s internal control system that covers material matters through
identification of control objectives as well as review of significant
policies and procedures.
Bank’s internal control system has been designed to identify and
mitigate the risk of failure to achieve overall business objectives of the
Bank. Internal controls and policies are designed to provide
reasonable assurance regarding the effectiveness and efficiency of
the Bank’s operations, reliability of financial information
and compliance with applicable laws & regulations. However, it needs
to be stated that systems are designed to manage, rather than eliminate
the risk of failure to achieve the business objectives and can only
provide reasonable and not absolute assurance against material
misstatement or loss.
The management of the Bank has adopted the Integrated Framework on
Internal Controls issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO) and has completed all the stages as set
out in the roadmap provided by the State Bank of Pakistan (SBP)
through the Guidelines on Internal Controls. Bank’s assessment
included documenting, evaluating and testing of the design and
operating effectiveness of its Internal Controls over Financial
Reporting (ICFR). Bank has developed a management testing and
reporting framework for monitoring ongoing operating effectiveness of key
controls.
Concerted efforts are made by every Group to improve the control
environment at grass root level by regularly reviewing and
streamlining procedures to prevent and rectify control lapses as well
as imparting training for improvement at various levels.
Compliance & Controls Group (CCG), through its specialized
teams and centralized automated solutions, also oversees adherence to
the regulatory requirements, with specific emphasis on Anti-Money
Laundering (AML) / Combatting the Financing of Terrorism (CFT) /
Countering Proliferation Financing (CPF). In addition, CCG also
leads the Management’s Committee on AML/CFT/CPF for oversight
of AML/CFT/ CPF compliance with respect to relevant laws, regulations,
The scope of Audit & RAR Group, independent from the management,
inter alia includes, review and assessment of the adequacy and
effectiveness of the control activities across the Bank as well as
evaluation of compliance
streamlining procedures to prevent and rectify control lapses as well
as imparting training for improvement at various levels.
Compliance & Controls Group (CCG), through its specialized
teams and centralized automated solutions, also oversees adherence to
the regulatory requirements, with specific emphasis on Anti-Money
Laundering (AML) / Combatting the Financing of Terrorism (CFT) /
Countering Proliferation Financing (CPF). In addition, CCG also
leads the Management’s Committee on AML/CFT/CPF for oversight
of AML/CFT/ CPF compliance with respect to relevant laws, regulations,
The scope of Audit & RAR Group, independent from the management,
inter alia includes, review and assessment of the adequacy and
effectiveness of the control activities across the Bank as well as
evaluation of compliance
with the Bank’s prescribed policies and procedures. All
significant / material findings of the internal audit activities are reported to
the Board’s Audit Committee. The Audit Committee actively monitors
implementation of internal controls to ensure that identified risks are
mitigated to safeguard interest of the Bank.
All significant and material findings of the internal and external
auditors as well as observations of the regulators are addressed on priority
by the management and their status is reported periodically to the Board’s
Audit Committee and the Board’s Compliance Review &
Monitoring Committee respectively, which ensures that the management
takes appropriate corrective actions and put in place a system to minimize
repetition for strengthening of the control environment.
Senior management team, through different Management Sub-Committees,
monitors resolution / compliance of issues identified by the Regulators,
Statutory Auditors as well as Audit & RAR Group. Periodic meetings
of these Management Sub-committees are held to ensure expeditious resolution
/ compliance of aforementioned issues. The performance of the Sub-
committees is monitored by the President / CEO of the Bank.
In accordance with SBP’s directives and as stated earlier, the Bank has
completed all stages of ICFR roadmap and a Long Form Report (LFR) on the
assessment of Bank’s ICFR for the year 2020 issued by the statutory auditors has
been submitted to SBP in compliance with its directives stated in OSED Circular
No. 1 of 2014 dated February 07, 2014. None of the deficiencies identified
had a material impact on Financial Reporting.
Based upon the results derived through ongoing testing of financial reporting
controls and internal audits carried out during the year, the management
considers that the Bank’s existing internal control system is adequate and has
been effectively implemented and monitored. The management will
continue enhancing its coverage and compliance with the SBP Guidelines
on Internal Controls and further strengthening its control environment on an
ongoing basis.
Based on the above, the Board of Directors has duly endorsed
management’s evaluation of internal controls including ICFR in the Directors’
report.
Farid Ahmad Kashif Ali
Chief Compliance Officer Group Head Operations
Hammad Khalid Muhammad Farooq Wasi
Chief Financial Officer Chief Internal Auditor
Chief Compliance Officer Group Head Operations
Hammad Khalid Muhammad Farooq Wasi
Chief Financial Officer Chief Internal Auditor
Statement of Compliance with Listed Companies
(Code of Corporate Governance) Regulations, 2019
MCB Bank Limited
For the year ended December 31, 2021
The Bank has complied with the requirements of the Regulations in the following manner:
1. Total number of Directors including the President & CEO are 13 as per the following:
a. Male: 12
b. Female: 01
2. The composition of the Board is as follows:

Category
Independent Directors
Non-Executive Directors
Executive Director (President & CEO)

Female Director (Non-Executive)
During the year, the term of the Board of Directors was completed and reconstituted in the Annual General Meeting held on March 27,
outgoing directors were re-elected. Moreover, the term of President & CEO, Mr. Imran Maqbool was completed on December 20, 2021
appointed Mr. Shoaib Mumtaz, as Acting President & CEO of the Bank with effect from December 21, 2021 subject to his Fit and Proper Test
the State Bank of Pakistan (“SBP”). Subsequently, SBP has cleared FPT of Mr. Shoaib Mumtaz as President & CEO of the Bank on Feb
As per the requirements of the Code of Corporate Governance, the independent directors constitute one third of the Board. Out of the to
directors and CEO (deemed director), the Bank has 4 independent directors, thereby resulting in 0.33 fraction higher than one third. The fraction of
(0.50) and accordingly, the same has not been rounded up as one.
3. The directors have confirmed that none of them is serving as a director on more than seven listed companies,
including the Bank;
4. The Bank has prepared a ‘Code of Conduct’ and has ensured that appropriate steps have been taken to disseminate
it throughout the Bank along with its supporting policies and procedures;
5. The Board has developed a vision/mission statement, overall corporate strategy and significant policies of the Bank. The Board ha
complete record of particulars of the significant policies along with their date of approval or updation is maintained by the Bank;
6. All the powers of the Board have been duly exercised and decisions on relevant matters have been taken by the Board/ Shareholders as empow
provisions of the Companies Act, 2017 (the “Act”) and the Regulations;
7. The meetings of the Board were presided over by the Chairman. The Board has complied with the requireme
the Act and the Regulations with respect to frequency, recording and circulating minutes of meeting of the B
8. The Board has a formal policy and transparent procedures for remuneration of directors in accordance with the Act
and the Regulations and directives of the State Bank of Pakistan (SBP);
with Listed Companies
egulations, 2019
he Regulations in the following manner:

esident & CEO are 13 as per the following:
Name
Mr. Yahya Saleem
Mr. Salman Khalid Butt Mr. Shahzad Hussain Mr. Masood Ahmed Puri
Mian Mohammad Mansha Mr. S. M. Muneer

Mr. Muhammad Tariq Rafi Mian Umer Mansha
Mr. Mohd Suhail Amar Suresh bin Abdullah Mr. Muhammad Ali Zeb
Mr. Shoaib Mumtaz

Mrs. Iqraa Hassan Mansha
tors was completed and reconstituted in the Annual General Meeting held on March 27, 2021. All the
the term of President & CEO, Mr. Imran Maqbool was completed on December 20, 2021 and the Board
ident & CEO of the Bank with effect from December 21, 2021 subject to his Fit and Proper Test (FPT) clearance by
tly, SBP has cleared FPT of Mr. Shoaib Mumtaz as President & CEO of the Bank on February 09, 2022.
ate Governance, the independent directors constitute one third of the Board. Out of the total 12 elected
s 4 independent directors, thereby resulting in 0.33 fraction higher than one third. The fraction of 0.33 is below half
ded up as one.
them is serving as a director on more than seven listed companies,
nd has ensured that appropriate steps have been taken to disseminate

olicies and procedures;
n statement, overall corporate strategy and significant policies of the Bank. The Board has ensured that
t policies along with their date of approval or updation is maintained by the Bank;
ercised and decisions on relevant matters have been taken by the Board/ Shareholders as empowered by the relevant
and the Regulations;
s of the Board were presided over by the Chairman. The Board has complied with the requirements of
the Regulations with respect to frequency, recording and circulating minutes of meeting of the Board;
procedures for remuneration of directors in accordance with the Act
k of Pakistan (SBP);
B9.oardThMe embers either meet the minimum criteria of education and experience for exemption from Directors
Training Program as required under Regulation 19 of the Regulations or have already undergone such training pursuant to the r
Regulations;
10. The Board has approved the appointment of Chief Financial Officer, Company Secretary and Head of Internal Audit, incl
remuneration and terms and conditions of employment and complied with relevant requirements of the Regulations;
11. Chief Financial Officer and Chief Executive Officer duly endorsed the financial statements before approval of the
Board;
12. The Board has formed committees comprising of members given below:
1. Audit Committee (AC): 2. Business Strategy & Development Committee (BS&DC):
Mr. Shahzad Hussain Chairman Mian Umer Mansha Chairman

Mian Umer Mansha Member Mian Mohammad Mansha Member
Mr. Muhammad Ali Zeb Member Mr. S. M. Muneer Member
Mr. Shariffuddin Bin Khalid Member Mr. Mohd. Suhail Amar Suresh Member
Mr. Salman Khalid Butt Member
Mr. Masood Ahmed Puri Member
President & CEO Member
3. Risk Management & Portfolio Review Committee (RM&PRC): 4. Human Resource & Remuneration Committee (HR&RC):
Mr. Muhammad Ali Zeb Chairman Mr. Salman Khalid Butt Chairman
Mian Umer Mansha Member Mian Mohammad Mansha Member
Mr. Mohd. Suhail Amar Suresh Member Mrs. Iqraa Hassan Mansha Member
Mr. Salman Khalid Butt Member Mr. Muhammad Ali Zeb Member
5. Committee on Physical Planning & Contingency Arrangements (PP&CA) 6. IT Committee (ITC)
Mian Umer Mansha Chairman Mian Umer Mansha Chairman

Mian Mohammad Mansha Member Mr. Mohd. Suhail Amar Suresh Member
Mr. Muhammad Ali Zeb Member Mr. Salman Khalid Butt Member
Mrs. Iqraa Hassan Mansha Member President & CEO Member
7. Compliance Review & Monitoring Committee (CR&MC) 8. Write Off & Waiver Committee (WO&WC)
Mr. S. M. Muneer Chairman Mian Umer Mansha Chairman
Mr. Muhammad Ali Zeb Member Mr. Muhammad Tariq Rafi Member
Mr. Salman Khalid Butt Member Mr. Muhammad Ali Zeb Member
Currently, the Board has not constituted a separate Nomination Committee and functions are being performed by the Board.
1er3m. sTohfeRTeference (“TORs”) of the aforesaid Committees have been formed, documented and advised to the
respective committee for compliance;
ectors
ch training pursuant to the requirements of the
Head of Internal Audit, including their

ulations;
ore approval of the
Board.
d and advised to the
1eq4u. eTnhcey forf meetings of the respective committee were as follows:
Name of Committee
Audit Committee
Business Strategy & Development Committee
Risk Management & Portfolio Review Committee
Human Resource & Remuneration Committee
Committee on Physical Planning & Contingency Arrangements
IT Committee
Compliance Review & Monitoring Committee
Write Off & Waiver Committee
B15o.ardThheas set up an effective internal audit function which is considered suitably qualified and experienced for
the purpose and conversant with the policies and procedures of the Bank;
16. The statutory auditors of the Bank have confirmed that they have been given a satisfactory rating under the Quality Control Review
Institute of Chartered Accountants of Pakistan and registered with Audit Oversight Board of Pakistan, that they and all their partners are in complia
Federation of Accountants (IFAC) guidelines on code of ethics as adopted by the Institute of Chartered Accountants of Pakistan and that they and
the firm involved in the audit are not a close relative (spouse, parent, dependent and non-dependent children) of the Presiden
Officer, Chief Financial Officer, Head of Internal Audit, Company Secretary or Director of the Bank;
17. The statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance with the Act
any other regulatory requirement and the auditors have confirmed that they have observed IFAC guidelines in this regard;
18. We confirm that all requirements of the regulations 3, 6, 7, 8, 27, 32, 33 and 36 of the Regulations have been
complied with.
For and on behalf of the Board of Directors
Chairman
MCB Bank Limited
February 10, 2022
Lahore
INDEPENDENT AUDITOR’S REVIEW REPORT

TO THE MEMBERS OF MCB BANK LIMITED
REVIEW REPORT ON THE STATEMENT OF COMPLIANCE CONTAINED IN LISTED COMPANIES (CODE OF CORPORATE
REGULATIONS, 2019
We have reviewed the enclosed Statement of Compliance with the Listed Companies (Code of Corporate Governance) Regu
Regulations) prepared by the Board of Directors of MCB Bank Limited (the Bank) for the year ended December 31, 2021, in accordance
of regulation 36 of the Regulations.
The responsibility for compliance with the Regulations is that of the Board of Directors of the Bank. Our responsibility is to review whe
of Compliance reflects the status of the Bank’s compliance with the provisions of the Regulations and report if it does not and to h
compliance with the requirements of the Regulations. A review is limited primarily to inquiries of the Bank’s personnel and review of va
prepared by the Bank to comply with the Regulations.
As a part of our audit of the financial statements we are required to obtain an understanding of the accounting and internal co
sufficient to plan the audit and develop an effective audit approach. We are not required to consider whether the Board of Direct
internal control covers all risks and controls or to form an opinion on the effectiveness of such internal controls, the Bank’s corporate gov
and risks.
The Regulations require the Bank to place before the Audit Committee, and upon recommendation of the Audit Committee, pl
of Directors for their review and approval, its related party transactions. We are only required and have ensured compliance of this requir
the approval of the related party transactions by the Board of Directors upon recommendation of the Audit Committee.
Based on our review, nothing has come to our attention which causes us to believe that the Statement of Compliance does not appropria
Bank's compliance, in all material respects, with the requirements contained in the Regulations as applicable to the Bank for the y
31, 2021.
A. F. Ferguson & Co
Chartered Accountants
Lahore
Date: March 3, 2022
UDIN: CR202110092VTi7zqYan
Report of the Audit Committee

The Audit Committee comprises four (4) non-executive directors including one Independent Director, being Chairman of the Audit Committee. F
chartered accountants with diversified professional experience in various sectors are members of the Audit Committee. Moreover, one of the
member of Chartered Institute of Management Accountants, United Kingdom. The members of the Audit Committee are qualified profess
enriched experience of working at the Boards and Senior Management levels of entities operating in both banking and non-banking sectors.
Role of Audit Committee to discharge its responsibilities towards financial statements and Committee overall
approach to risk management:
• In line with the requirements of Listed Companies (Code of Corporate Governance) Regulations – 2019 and Guidelines fo
Function issued by the State Bank of Pakistan, the Chief Internal Auditor functionally reports to the Board’s Audit Committee and administr
President / CEO. The Committee ensures staffing of the internal audit function with personnel of sufficient internal audit knowledge and ex
equipping of the function with necessary resources and authority to execute their responsibilities independently and objectively.
• The Committee approves and overseas the risk assessment, annual audit plan and related enablers/budget along
with resource requirements of Audit & Risk Assets Review (Audit & RAR) Group.
• All significant and material findings of the internal audit activities are reported to the Audit Committee. The Audit Committee active
implementation of internal controls to ensure that identified risks are mitigated to safeguard the interest of the Bank.
• Audit Committee actively engages in the review of the Bank’s quarterly, half yearly and annual financial statements as well as overs
activities in accordance with the requirements of Listed Companies (Code of Corporate Governance) Regulations – 2019 and the Charter of t
Committee, duly approved by the Board of Directors.
• The Committee understands its responsibility to ensure that the significant issues in relation to financial statements are addressed p
and challenging the critical judgments and estimates made by the management. Furthermore, Audit & RAR Group also reviews the Bank’s qua
and annual financial statements and discusses the significant matters with management.
• The Committee ensures the independence of external auditor, effectiveness of external audit process and appointment / re-appointment
performing the followings:
o Review the terms of engagement and ensure that external auditor is independent to the Bank in terms of local regulatory requirements.
o Ensure that external auditors have resources and professional qualification to conduct the audit.
o The Auditors have been allowed direct access to the Audit Committee.
o Discuss external auditors’ feedback on the Bank’s critical accounting estimates and judgments.
o Discuss the significant control issues and significant audit matters identified by external auditors.
Audit Committee held five (5) meetings, during the year 2021, and following matters (including significant
matters) were discussed:
• Review of the Bank’s periodic financial statements, including disclosure of related party transactions prior to their
approval by the Board of Directors (BOD).
• Review of status of compliance against observations highlighted by internal and external auditors, including regular
updates on the rectification actions taken by the management in response to the audit findings.
• Review of status of implementation of decisions of BOD and its Sub-Committees.
• Review of significant issues (including critical repeated observation) highlighted by internal auditors during audits/
reviews of branches and other functions of the Bank along with management actions thereon.
• Review of analysis related to significant frauds and forgery incidents in the Bank, with specific focus on nature and reasons along w
action(s) thereof. Review of annual fraud risk assessment along with action plan for strengthening of internal controls.
• Review, approval and oversight of Risk Assessment, Annual Audit Plan and related enablers/budget along with
resource requirements of Audit & Risk Assets Review (Audit & RAR) Group.
• Review of status of trainings imparted to internal audit staff, along with status of activities under Quality Assurance
& Improvement Program of Internal Audit.
• Review of resolution status of complaints lodged under the Bank’s Whistle Blowing Program.
• Review of performance of Chief Internal Auditor against Key Performance Indicators (KPIs) for Audit & RAR Group.
Review and approval of KPIs of Chief Internal Auditor for2022.
• Review & approval of Audit Group's (including Chief Internal Auditor) increments, bonuses, promotions and
performance appraisal of Chief Internal Auditor.
• Review of progress on Audit Group’s Strategic Initiatives and Milestones.
• Recommendation of scope and appointment of external auditors, including audit and consultancy fee. Audit Committee further
between internal and external auditors.
• The Committee reviewed Annual Assessment by Audit & RAR Group on adequacy & effectiveness of Bank’s
processes for controlling and managing its risks in all core areas of the Bank’s operations.
• The Committee reviewed annual confirmation regarding organizational independence of Audit & RAR Group.
• In addition to the above, the Committee also reviewed and recommended the following to the Board for approval:
- Global Internal Audit Policy Version 4.0
- IFRS-9 ECL Provisioning Policy MCB – Sri Lanka, Version 3.0
- IFRS-9 ECL Provisioning Policy MCB – Bahrain, Version 3.0
- IFRS-9 ECL Provisioning Policy MCB – UAE Operations, Version 3.0
- Whistle Blowing Program, Version 8.0
- Fraud Prevention Policy, Version 5.0
- Related Party Transaction Policy, Version 8.0
- Accounting and Disclosure Policy, Version 9.0
- Policy on Internal Controls, Version 8.0
- Policy for Appointment of External Auditors and Prohibition of Non-Audit Services - MCB UAE Operations
Committee performance
Performance of the Audit Committee is annually reviewed by the Board of Directors and Board appreciated the Committee’s
reviewing the financial statements and Bank’s internal audit function and other financial matters of critical importance.
Internal Control Framework and role of Internal audit

The Bank’s internal control structure comprises the Board of Directors, Senior Management, Risk Management Group, Comp
Group, Financial Control Group, the controls and self-assessment procedures implemented at other functions within the
Risk Assets Review (RAR) Group. The Management is responsible for establishing and maintaining a system of adequate and
controls and procedures for implementing strategy and policies, as approved by the Board of Directors. The Bank has adopted integrat
Internal Controls issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and has completed all the
in the roadmap provided by the State Bank of Pakistan (SBP) through the Guidelines on Internal Controls.
Audit & RAR Group has performed its role effectively on both assurance and consultative fronts. The Group played pivotal ro
efficacy of Bank’s control systems and contributing towards their ongoing effectiveness by enhancing visibility of the Board and
the risk management and internal control matters of the Bank. All significant and material findings of the internal audit activities are
Audit Committee of the Board of Directors. The Audit Committee actively monitors implementation of internal controls to ensu
risks are mitigated to safeguard the interest of the Bank.
The Audit Committee will continue to provide guidance to the Audit & RAR Group and the Management for further
strengthening of Bank’s risk management practices and internal control environment.
Shahzad Hussain Chairman Audit Committee MCB Bank Limited
Lahore
Unconsolid
Financial Statem
MCB Bank L
mmittee were as follows:
No. of Meetings held during the year, 2021
Five
Four
Four
Four
Three
Five
Four
None
udit function which is considered suitably qualified and experienced for
rocedures of the Bank;
onfirmed that they have been given a satisfactory rating under the Quality Control Review program of the
registered with Audit Oversight Board of Pakistan, that they and all their partners are in compliance with International
ode of ethics as adopted by the Institute of Chartered Accountants of Pakistan and that they and the partners of
ose relative (spouse, parent, dependent and non-dependent children) of the President & Chief Executive
al Audit, Company Secretary or Director of the Bank;
d with them have not been appointed to provide other services except in accordance with the Act, these regulations or
have confirmed that they have observed IFAC guidelines in this regard;
gulations 3, 6, 7, 8, 27, 32, 33 and 36 of the Regulations have been
UDITOR’S REVIEW REPORT

B BANK LIMITED
ENT OF COMPLIANCE CONTAINED IN LISTED COMPANIES (CODE OF CORPORATE GOVERNANCE)
ement of Compliance with the Listed Companies (Code of Corporate Governance) Regulations, 2019 (the
Directors of MCB Bank Limited (the Bank) for the year ended December 31, 2021, in accordance with the requirement
he Regulations is that of the Board of Directors of the Bank. Our responsibility is to review whether the Statement
he Bank’s compliance with the provisions of the Regulations and report if it does not and to highlight any non-
Regulations. A review is limited primarily to inquiries of the Bank’s personnel and review of various documents
e Regulations.
statements we are required to obtain an understanding of the accounting and internal control systems
op an effective audit approach. We are not required to consider whether the Board of Directors’ statement on
rols or to form an opinion on the effectiveness of such internal controls, the Bank’s corporate governance procedures
place before the Audit Committee, and upon recommendation of the Audit Committee, place before the Board
al, its related party transactions. We are only required and have ensured compliance of this requirement to the extent of
ions by the Board of Directors upon recommendation of the Audit Committee.
to our attention which causes us to believe that the Statement of Compliance does not appropriately reflect the
spects, with the requirements contained in the Regulations as applicable to the Bank for the year ended December
mittee
utive directors including one Independent Director, being Chairman of the Audit Committee. Further, two qualified
onal experience in various sectors are members of the Audit Committee. Moreover, one of the members is a fellow
ccountants, United Kingdom. The members of the Audit Committee are qualified professionals and possess
Senior Management levels of entities operating in both banking and non-banking sectors.
onsibilities towards financial statements and Committee overall
Companies (Code of Corporate Governance) Regulations – 2019 and Guidelines for Internal Audit
, the Chief Internal Auditor functionally reports to the Board’s Audit Committee and administratively to Bank’s
of the internal audit function with personnel of sufficient internal audit knowledge and experience, as well as
and authority to execute their responsibilities independently and objectively.
assessment, annual audit plan and related enablers/budget along
sets Review (Audit & RAR) Group.
internal audit activities are reported to the Audit Committee. The Audit Committee actively monitors
e that identified risks are mitigated to safeguard the interest of the Bank.
eview of the Bank’s quarterly, half yearly and annual financial statements as well as oversight of internal audit
isted Companies (Code of Corporate Governance) Regulations – 2019 and the Charter of the Board Audit
ctors.
ility to ensure that the significant issues in relation to financial statements are addressed properly by debating
es made by the management. Furthermore, Audit & RAR Group also reviews the Bank’s quarterly, half yearly
s the significant matters with management.
f external auditor, effectiveness of external audit process and appointment / re-appointment of external auditor by
hat external auditor is independent to the Bank in terms of local regulatory requirements.
ces and professional qualification to conduct the audit.
to the Audit Committee.
nk’s critical accounting estimates and judgments.
significant audit matters identified by external auditors.
during the year 2021, and following matters (including significant
atements, including disclosure of related party transactions prior to their
ations highlighted by internal and external auditors, including regular

he management in response to the audit findings.
ns of BOD and its Sub-Committees.
ical repeated observation) highlighted by internal auditors during audits/
k along with management actions thereon.
auds and forgery incidents in the Bank, with specific focus on nature and reasons along with Management
ssment along with action plan for strengthening of internal controls.
sment, Annual Audit Plan and related enablers/budget along with
Review (Audit & RAR) Group.
nal audit staff, along with status of activities under Quality Assurance
ed under the Bank’s Whistle Blowing Program.

uditor against Key Performance Indicators (KPIs) for Audit & RAR Group.
ditor for2022.
ncluding Chief Internal Auditor) increments, bonuses, promotions and
tegic Initiatives and Milestones.
ointment of external auditors, including audit and consultancy fee. Audit Committee further ensured coordination
l Assessment by Audit & RAR Group on adequacy & effectiveness of Bank’s

risks in all core areas of the Bank’s operations.
onfirmation regarding organizational independence of Audit & RAR Group.
e also reviewed and recommended the following to the Board for approval:
n 4.0
B – Sri Lanka, Version 3.0
B – Bahrain, Version 3.0
CB – UAE Operations, Version 3.0
0
sion 8.0
ersion 9.0
.0
Auditors and Prohibition of Non-Audit Services - MCB UAE Operations
is annually reviewed by the Board of Directors and Board appreciated the Committee’s role in thoroughly
nd Bank’s internal audit function and other financial matters of critical importance.
Internal audit
comprises the Board of Directors, Senior Management, Risk Management Group, Compliance & Controls
e controls and self-assessment procedures implemented at other functions within the Bank; and Audit &
he Management is responsible for establishing and maintaining a system of adequate and effective internal
ting strategy and policies, as approved by the Board of Directors. The Bank has adopted integrated framework on
ee of Sponsoring Organizations of the Treadway Commission (COSO) and has completed all the stages, as set out
Bank of Pakistan (SBP) through the Guidelines on Internal Controls.
s role effectively on both assurance and consultative fronts. The Group played pivotal role in evaluating the
nd contributing towards their ongoing effectiveness by enhancing visibility of the Board and the management on
l matters of the Bank. All significant and material findings of the internal audit activities are reported to the
ctors. The Audit Committee actively monitors implementation of internal controls to ensure that identified
rest of the Bank.
to provide guidance to the Audit & RAR Group and the Management for further
nt practices and internal control environment.
mittee MCB Bank Limited
Unconsolidated
Financial Statements
MCB Bank Limited
Independent Auditor’s Report
To the members of MCB Bank Limited
Report on the Audit of the Unconsolidated Financial Statements
Opinion
We have audited the annexed unconsolidated financial statements of MCB Bank Limited (the Bank), which comprise the unconsolidated statement
as at December 31, 2021, and the unconsolidated profit and loss account, the unconsolidated statement of comprehensive income, the unconsolidate
changes in equity and the unconsolidated cash flow statement for the year then ended, along with unaudited certified returns received from the bran
branches which have been audited by us and notes to the unconsolidated financial statements, including a summary of significant accounting polici
explanatory information and we state that we have obtained all the information and explanations which, to the best of our knowledge and belief, we
purposes of the audit.
In our opinion and to the best of our information and according to the explanations given to us, the unconsolidated statement of financial position, u
and loss account, the unconsolidated statement of comprehensive income, unconsolidated statement of changes in equity and unconsolidated c
together with the notes forming part thereof conform with the accounting and reporting standards as applicable in Pakistan, and, give the informat
Banking Companies Ordinance, 1962 and the Companies Act, 2017 (XIX of 2017), in the manner so required and respectively give a true and fair v
the Bank’s affairs as at December 31, 2021 and of the profit and other comprehensive loss, the changes in equity and its cash flows for the year the
Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Pakistan. Our responsibilities und
further described in the Auditor’s Responsibilities for the Audit of the Unconsolidated Financial Statements section of our report. We are independe
accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants as adopted by the
Accountants of Pakistan (the Code) and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit e
obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matter(s)

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the unconsolidated financial statem
period. These matters were addressed in the context of our audit of the unconsolidated financial statements as a whole, and in forming our opinion t
not provide a separate opinion on these matters.
Following is the Key audit matter:

S. No. Key Audit Matter
1 Provision against advances
(Refer note 3.4, note 6.4 and note 11.4 to the annexed
unconsolidated financial statements)
The Bank makes provision against advances extended in
Pakistan on a time-based criteria that involves ensuring that all
non-performing advances are classified in accordance with the
ageing criteria specified in the Prudential Regulations (PRs)
issued by the State Bank of Pakistan (SBP).
In addition to the above time-based criteria, the PRs
require a subjective evaluation of the credit worthiness of
borrowers to determine the classification of advances.
rt
tements of MCB Bank Limited (the Bank), which comprise the unconsolidated statement of financial position
nd loss account, the unconsolidated statement of comprehensive income, the unconsolidated statement of
ment for the year then ended, along with unaudited certified returns received from the branches except for 52
unconsolidated financial statements, including a summary of significant accounting policies and other
ed all the information and explanations which, to the best of our knowledge and belief, were necessary for the
rding to the explanations given to us, the unconsolidated statement of financial position, unconsolidated profit
hensive income, unconsolidated statement of changes in equity and unconsolidated cash flow statement
h the accounting and reporting standards as applicable in Pakistan, and, give the information required by the
Act, 2017 (XIX of 2017), in the manner so required and respectively give a true and fair view of the state of
fit and other comprehensive loss, the changes in equity and its cash flows for the year then ended.
nal Standards on Auditing (ISAs) as applicable in Pakistan. Our responsibilities under those standards are
Audit of the Unconsolidated Financial Statements section of our report. We are independent of the Bank in
d for Accountants’ Code of Ethics for Professional Accountants as adopted by the Institute of Chartered
our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have
r our opinion.
al judgment, were of most significance in our audit of the unconsolidated financial statements of the current
r audit of the unconsolidated financial statements as a whole, and in forming our opinion thereon, and we do
How the matter was addressed in our audit
Our audit procedures to verify provision against advances

included, amongst others, the following:
• We obtained an understanding of the design of relevant
controls established by the Bank to identify loss events and for
determining the extent of provisioning required against non-
performing advances.
The testing of controls included testing of:
• controls over correct classification of non- performing
advances on time-based criteria;
• controls over monitoring of advances with higher risk
of default and correct classification of advances on subjective
criteria;
The PRs also require the creation of general provision
for certain categories of advances.
Provision against advances of overseas branches is made as

per the requirements of the respective regulatory regimes.
Further, last year, several borrowers had availed the SBP

enabled deferment / restructuring and rescheduling relief
given as a result of the COVID-19 pandemic. The Bank
had expected that the repayment capacity of borrowers could be
impacted due to the pandemic and had accordingly recognised
additional general provision against the domestic funded
performing credit portfolio. The provision had been
recognised based on management’s best estimate.
As at December 31, 2021, the Bank holds a total provision of Rs
45,863 million against advances in the unconsolidated financial
statement of the Bank.
The determination of provision against advances based on

the above criteria remains a significant area of judgement and
estimation. Because of the significance of the impact of these
judgements/ estimations and the materiality of advances relative
to the overall unconsolidated statement of financial position of
the Bank, we considered the area of provision against
advances as a Key Audit Matter.
Information Other than the Unconsolidated and Consolidated Financial Statements and Auditor’s Reports Thereon
Management is responsible for the other information. The other information comprises the information included in the Annual Report, but does n
unconsolidated and consolidated financial statements and our auditor’s reports thereon.
Our opinion on the unconsolidated financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the unconsolidated financial statements, our responsibility is to read the other information and, in doing so, con
other information is materially inconsistent with the unconsolidated financial statements or our knowledge obtained in the audit or otherwis
materially misstated. If, based on the work
we have performed, we conclude that there is a material misstatement of this other information, we are required to report
that fact. We have nothing to report in this regard.
Responsibilities of Management and Board of Directors for the Unconsolidated Financial Statements
Management is responsible for the preparation and fair presentation of the unconsolidated financial statements in accordance with accounting and r
applicable in Pakistan, the requirements of Banking Companies Ordinance, 1962 and the Companies Act, 2017 (XIX of 2017) and for such internal control
determines is necessary to enable the preparation of unconsolidated financial statements that are free from material misstatement, whether due to fraud or er
In preparing the unconsolidated financial statements, management is responsible for assessing the Bank’s ability to continue as a going concern, di
matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Bank or to cease operati
alternative but to do so.
The Board of directors is responsible for overseeing the Bank’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Unconsolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the unconsolidated financial statements as a whole are free from material misstatement, wh
error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit condu
with ISAs as applicable in Pakistan will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are conside
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these unconsoli
statements.
As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise professional judgment and maintain professional skepticism throughout t
• Identify and assess the risks of material misstatement of the unconsolidated financial statements, whether due to fraud or error, design and perf
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material m
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstance
purpose of expressing an opinion on the effectiveness of the Bank’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a m
exists related to events or conditions that may cast significant doubt on the Bank’s ability to continue as a going concern. If we conclude that a material unc
required to draw attention in our auditor’s report to the related disclosures in the unconsolidated financial statements or, if such disclosures are inad
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the unconsolidated financial statements, including the disclosures, and whether the un
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide to the Board of Directors with a statement that we have complied with relevant ethical requirements regarding independ
communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where appli
safeguards.
From the matters communicated with the Board of Directors, we determine those matters that were of most significance in the audit of th
financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be commun
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communicat
Report on Other Legal and Regulatory Requirements
1. Based on our audit, we further report that in our opinion:
a) proper books of account have been kept by the Bank as required by the Companies Act, 2017 (XIX of 2017) and the returns referred
branches have been found adequate for the purpose of our audit;
b) the unconsolidated statement of financial position, the unconsolidated profit and loss account, the unconsolidated statement of co
unconsolidated statement of changes in equity and unconsolidated cash flow statement together with the notes thereon have been dra
with the Banking Companies Ordinance, 1962 and the Companies Act, 2017 (XIX of 2017) and are in agreement with the books of a
c) investments made, expenditure incurred and guarantees extended during the year were in accordance with the objects and powers
transactions of the Bank which have come to our notice have been within the powers of the Bank; and
d) zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted by the
Bank and deposited in the Central Zakat Fund established under section 7 of that Ordinance.
2. We confirm that for the purpose of our audit we have covered more than sixty per cent of the total loans and
advances of the Bank.
Other Matter
The unconsolidated financial statements of the Bank for the year ended December 31, 2020 were audited by another firm of Chartered A
expressed an unqualified opinion thereon vide their report dated February 26, 2021.
The engagement partner on the audit resulting in this independent auditor’s report is Hammad Ali Ahmad.
A. F. Ferguson & Co Chartered Accountants Lahore
Date: March 7, 2022

UDIN: AR202110092ExjV7N54O
• controls over accurate computation and recording of
provisions; and
• controls over the governance and approval process

related to provisions, including continuous reassessment by
the management.
We selected a sample of loan accounts and performed

the following substantive procedures:
• checked repayments of loan / mark-up installments
and tested classification of non- performing advances based on
the number of days overdue; and
• evaluated the management’s assessment for
classification of a borrower’s loan facilities as performing or
non-performing based on review of repayment pattern,
inspection of credit documentation, discussions with the
management and management’s consideration of the impact of
COVID-19 on the borrower.
We checked the accuracy of specific provision made against

non-performing advances and of general provision made
against performing advances in accordance with the
requirements of PRs by recomputing the provision amount in
accordance with the criteria prescribed under the PRs.
We evaluated the management’s assessment with respect to
general provision on account of the COVID-19 pandemic.
We issued instructions to auditors of those overseas branches

which were selected for audit, highlighting ‘Provision against
advances’ as a significant risk. The auditors of those
branches performed audit procedures to check compliance
with regulatory requirements and reported the results thereof to
us.
We, as auditors of the Bank, evaluated the work performed

by the component auditors and the results thereof.
Consolidated Financial Statements and Auditor’s Reports Thereon

on. The other information comprises the information included in the Annual Report, but does not include the
nts and our auditor’s reports thereon.
ments does not cover the other information and we do not express any
financial statements, our responsibility is to read the other information and, in doing so, consider whether the
h the unconsolidated financial statements or our knowledge obtained in the audit or otherwise appears to be
tatement of this other information, we are required to report

he Unconsolidated Financial Statements
presentation of the unconsolidated financial statements in accordance with accounting and reporting standards as
es Ordinance, 1962 and the Companies Act, 2017 (XIX of 2017) and for such internal control as management
idated financial statements that are free from material misstatement, whether due to fraud or error.
agement is responsible for assessing the Bank’s ability to continue as a going concern, disclosing, as applicable,
basis of accounting unless management either intends to liquidate the Bank or to cease operations, or has no realistic
’s financial reporting process.

d Financial Statements
her the unconsolidated financial statements as a whole are free from material misstatement, whether due to fraud or
n. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
rial misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
e expected to influence the economic decisions of users taken on the basis of these unconsolidated financial
Pakistan, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
t of the unconsolidated financial statements, whether due to fraud or error, design and perform audit procedures
fficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting
d may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the
the Bank’s internal control.
used and the reasonableness of accounting estimates and
f the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty
doubt on the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
ated disclosures in the unconsolidated financial statements or, if such disclosures are inadequate, to modify our
obtained up to the date of our auditor’s report. However, future events or conditions may cause the Bank to
nt of the unconsolidated financial statements, including the disclosures, and whether the unconsolidated
and events in a manner that achieves fair presentation.
mong other matters, the planned scope and timing of the audit
eficiencies in internal control that we identify during our audit.
a statement that we have complied with relevant ethical requirements regarding independence, and to
her matters that may reasonably be thought to bear on our independence, and where applicable, related
d of Directors, we determine those matters that were of most significance in the audit of the unconsolidated
e therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
would reasonably be expected to outweigh the public interest benefits of such communication.
ments
n our opinion:
the Bank as required by the Companies Act, 2017 (XIX of 2017) and the returns referred above from the
pose of our audit;
al position, the unconsolidated profit and loss account, the unconsolidated statement of comprehensive income,
ity and unconsolidated cash flow statement together with the notes thereon have been drawn up in conformity
962 and the Companies Act, 2017 (XIX of 2017) and are in agreement with the books of account and returns;
d and guarantees extended during the year were in accordance with the objects and powers of the Bank and the
o our notice have been within the powers of the Bank; and
kat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted by the
nd established under section 7 of that Ordinance.
it we have covered more than sixty per cent of the total loans and
Bank for the year ended December 31, 2020 were audited by another firm of Chartered Accountants who
heir report dated February 26, 2021.
e audit resulting in this independent auditor’s report is Hammad Ali Ahmad.

ahore
Unconsolidated Statement of Financial Position
As at December 31, 2021
2021 2020
Note (Rupees in '000)
ASSETS
Cash and balances with treasury banks 7 164,613,179 122,180,839

Balances with other banks 8 18,830,310 24,030,328
Lendings to financial institutions 9 42,467,110 17,139,453
Investments 10 1,035,585,496 1,015,869,448
Advances 11 589,711,091 462,941,787
Fixed assets 12 57,327,871 58,027,904
Intangible assets Deferred tax assets Other assets 13 978,785 938,458
14 – 60,954,606 – 56,334,253
1,970,468,448 1,757,462,470
LIABILITIES
Bills payable 16 24,589,644 23,980,692

Borrowings 17 269,525,556 164,001,533
Deposits and other accounts 18 1,411,851,527 1,289,502,304
Liabilities against assets subject to finance lease Subordinated debt 19 – –
Deferred tax liabilities – 729,424 – 6,975,158
Other liabilities 20 89,364,889 82,900,828

1,796,061,040 1,567,360,515
NET ASSETS 174,407,408 190,101,955
REPRESENTED BY
Share capital 21 11,850,600 11,850,600

Reserves 22 84,602,024 80,696,335
Surplus on revaluation of assets – net 23 14,271,517 27,720,418
Unappropriated profit 63,683,267 69,834,602
174,407,408 190,101,955
CONTINGENCIES AND COMMITMENTS 24
The annexed notes 1 to 48 and annexures I to II form an integral part of these unconsolidated financial statements.
Shoaib Mumtaz Hammad Khalid S.M. Muneer Mian Umer Mansha
President/Chief Executive Chief Financial Officer Director Director
2020
122,180,839
24,030,328
17,139,453
1,015,869,448
462,941,787
58,027,904
938,458
– 56,334,253
1,757,462,470
23,980,692
164,001,533
1,289,502,304
–
– 6,975,158
82,900,828
1,567,360,515
190,101,955
11,850,600
80,696,335
27,720,418
69,834,602
190,101,955
atements.
Shahzad Hussain
Director
Unconsolidated Profit and Loss Account
2021 2020
Mark-up / return / interest earned 26 123,334,306 136,075,705
Mark-up / return / interest expensed 27 59,347,404 64,741,214

Net mark-up / interest income 63,986,902 71,334,491
NON MARK-UP / INTEREST INCOME
Fee and commission income 28 12,439,679 10,936,325

Dividend income 2,251,473 1,209,753
Foreign exchange income 3,734,284 2,525,340
Income from derivatives 14.035 4.087
Gain / (loss) on securities 29 810.850 3,332,032
Other income 30 823.415 128.250
Total non-markup / interest Income 20,073,736 18,135,787
Total Income 84,060,638 89,470,278
NON MARK-UP / INTEREST EXPENSES
Operating expenses 31 35,380,554 32,645,782

Workers welfare fund 1,039,786 964.978
Other charges 32 473.716 297.397
Total non-markup / interest expenses 36,894,056 33,908,157
Profit before provisions 47,166,582 55,562,121
(Reversals) / provisions and write offs - net 33 (4,822,728) 7,313,166
Extra ordinary / unusual items – –
PROFIT BEFORE TAXATION 51,989,310 48,248,955
Taxation 34 21,178,263 19,211,654

PROFIT AFTER TAXATION 30,811,047 29,037,301
Basic and diluted earnings per share 35 (Rupees)
26.00
000)
136,075,705
64,741,214
71,334,491
10,936,325
1,209,753
2,525,340
4.087
3,332,032
128.250
18,135,787
89,470,278
32,645,782
964.978
297.397
33,908,157
55,562,121
7,313,166
–
48,248,955
19,211,654
29,037,301
(Rupees)
24.50
tements.
Shahzad Hussain
Director
Unconsolidated Statement of Comprehensive Income
2021 2020
(Rupees in '000)
Profit after taxation for the year Other comprehensive income / (loss) 30,811,047 29,037,301
Items that may be reclassified to profit and loss account in subsequent periods:
Effect of translation of net investment in foreign branches 824.584 201.352

Movement in (deficit) / surplus on revaluation of investments - net of tax (12,978,358) 4,021,886
Items that will not be reclassified to profit and loss account in subsequent periods: (12,153,774) 4,223,238
Remeasurement gain / (loss) on defined benefit obligations - net of tax 37.922 (342.311)
Movement in surplus on revaluation of operating fixed assets - net of tax (147.019) -
Movement in surplus on revaluation of non-banking assets - net of tax 124.017 119.544
14.920 (222.767)
Total comprehensive income 18,672,193 33,037,772
e
29,037,301
201.352
4,021,886
4,223,238
(342.311)
-
119.544
(222.767)
33,037,772
atements.
Shahzad Hussain
Director
Share
capital
Capital reserve
Share Non- Exchange
premium distributable translation
capital reserve reserve
Statutory
reserve
Unappropriate
d profit
Total
Revenue
reserve
General
reserve
Suplus/(deficit) on revaluation
of
Fixed / non -
Investments
banking assets
(Rupees in '000)
Balance as at December 31, 2019 11,850,600 23,751,114 908.317 2,675,131
Total comprehensive income for the year ended December 31, 2020
Profit after taxation for the year ended December 31, 2020 – – – –
Other comprehensive income - net of tax – – – 201.352
– – – 201.352
Transfer to statutory reserve – – – –
fixed assets to unappropriated profit - net of tax – – – –
Surplus realized on disposal of revalued fixed assets - net of tax – – – –
Surplus realized on disposal of revalued non-banking assets - net of tax – – – –
Transactions with owners, recorded directly in equity
Final cash dividend at Rs. 5.0 per share - December 31, 2019 – – – –
Interim cash dividend at Rs. 5.0 per share - March 31, 2020 – – – –
– – – –
Balance as at December 31, 2020 11,850,600 23,751,114 908.317 2,876,483
Profit after taxation for the year ended December 31, 2021 Other – – – – 824,584
comprehensive loss - net of tax – – –
Transfer to statutory reserve – – – 824,584 –

Transfer in respect of incremental depreciation from surplus on revaluation of – – – – 3,081,105
fixed assets to unappropriated profit - net of tax – – – – – –
Surplus realized on disposal of revalued fixed assets - net of tax Surplus – – – – – –
realized on disposal of non-banking assets - net of tax – – – – – –
Final cash dividend at Rs. 15.0 per share - December 31, 2020 Interim cash – – – –
dividend at Rs. 4.5 per share - March 31, 2021 Interim cash dividend at Rs. – – – –
5.0 per share - June 30, 2021 Interim cash dividend at Rs. 4.5 per share - Sep – – – –
30, 2021 – – – –
– – – – – –
Balance as at December 31, 2021 11,850,600 23,751,114 908,317 3,701,067 37,641,526 18

Transfer in respect of incremental depreciation from surplus on revaluation of
For details of dividend declaration and appropriations, please refer note 46 to these unconsolidated financial statements. For details of reserves, please refer note 22 to these u
Shoaib Mumtaz Hammad Khalid S.M. Muneer

President/Chief Executive Chief Financial Officer Director
Rupees in '000)
2,675,131 31,656,691 18,600,000 4,217,747 19,477,694 55,777,489 168,914,783
– – – – – 29,037,301 29,037,301
201.352 – – 4,021,886 119.544 (342.311) 4,000,471
201.352 – – 4,021,886 119.544 28,694,990 33,037,772
– 2,903,730 – – – (2,903,730) –
– – – – (89.135) 89.135 –
– – – – (22.544) 22.544 –
– – – – (4.774) 4.774 –
– – – – – (5,925,300) (5,925,300)
– – – – – (5,925,300) (5,925,300)
– – – – – (11,850,600) (11,850,600)
2,876,483 34,560,421 18,600,000 8,239,633 19,480,785 69,834,602 190,101,955
– 824,584 – – – – (23,002) 30,811,047 30,811,047

– – (12,978,358) 37,922 (12,138,854)
– 824,584 – – (12,978,358) (23,002) 30,848,969 18,672,193

– – 3,081,105 – – – (3,081,105) –
– – – – – (82,067) 82,067 –
– – – – – (115,263) 115,263 –
– – – – – (250,211) 250,211 –
– – – – – (17,775,900) (17,775,900)
– – – – – (5,332,770) (5,332,770)
– – – – – (5,925,300) (5,925,300)
– – – – – (5,332,770) (5,332,770)
– – – – – – (34,366,740) (34,366,740)
08,317 3,701,067 37,641,526 18,600,000 (4,738,725) 19,010,242 63,683,267 174,407,408
s of reserves, please refer note 22 to these unconsolidated financial statements.
Mian Umer Mansha Shahzad Hussain

Director Director
Unconsolidated Cash Flow Statement
2021 2020
CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxation 51,989,310
Less: Dividend income (2,251,473)
49,737,837
Adjustments:
Depreciation on fixed assets 12.2 2,176,394
Depreciation on right of use assets 31 1,201,974
eciDateiopnr on non-banking assets acquired in satisfaction of claims 31 35.544
Amortization 13 316.984
Provisions / (reversals) and write offs - net 33 (4,822,728)
Workers welfare fund 1,039,786
Gain on sale of non-banking assets acquired in satisfaction of claims 30 (571.449)
Charge / (reversal) for defined benefit plan 31.1 289.144
Gain on sale of fixed assets 30 (106.456)
(Gain) / loss on termination of lease liability against right of use assets 30 (54.854)
Unrealized loss on revaluation of investments classified
as held for trading 29 12
Interest expensed on lease liability against right-of-use assets 27 914.209
Gain on sale of shares in a subsidiary 29.1 –
418.560
50,156,397
Lendings to financial institutions (25,327,657)
Held-for-trading securities 1,296,425
Advances (121,904,642)
Others assets (excluding advance taxation) (5,202,789)
(151,138,663)
Bills Payable 608.952
Borrowings from financial institutions 104,261,218
Deposits 122,349,223
Other liabilities (excluding current taxation) 6,229,912
233,449,305
Defined benefits paid (250.977)
Income tax paid (21,496,866)
Net cash flow from operating activities 110,719,196
CASH FLOW FROM INVESTING ACTIVITIES

Net investment in available-for-sale securities (35,187,427)
Net (investment) / divestment in held-to-maturity securities (6,276,699)
Dividends received 2,281,375
Investments in fixed assets (2,764,311)
Investments in Intangible assets (356.679)
Proceeds from sale of fixed assets 398.773
Proceeds from sale of non-banking assets acquired in satisfaction of claims 2,052,928
Effect of translation of net investment in foreign branches 824.584
Net cash flow used in investing activities (39,027,456)
CASH FLOW FROM FINANCING ACTIVITIES

Dividend paid 36.1 (34,036,857)
Payment of lease liability against right-of-use-assets 36.1 (1,685,366)
Net cash flow used in financing activities (35,722,223)
Effects of exchange rate changes on cash and cash equivalents 5,341,973
Increase in cash and cash equivalents 41,311,490
Cash and cash equivalents at beginning of the year 140,471,881
Cash and cash equivalents at end of the year 36 181,783,371
Shoaib Mumtaz Hammad Khalid S.M. Muneer Mian Umer Mansha Shahzad Hussain
President/Chief Executive Chief Financial Officer Director Director Director
1. STATUS AND NATURE OF BUSINESS

MCB Bank Limited (the ‘Bank’) is a banking company incorporated in Pakistan and is engaged in commercial banking and related services. The
Bank’s ordinary shares are listed on the Pakistan stock exchange. The Bank’s Registered Office and Principal Office are situated at MCB -15 Ma
Gulberg, Lahore. The Bank operates 1,426 branches (2020: 1,418 branches) within Pakistan and 11 branches (2020: 11 branches) outside
Pakistan (including the Karachi Export Processing Zone branch).
2. BASIS OF PRESENTATION
2.1 These unconsolidated financial statements represent the separate financial statements of MCB Bank Limited. The consolidated financial
statements of the Group are being issued separately.
2.2 These unconsolidated financial statements have been prepared in conformity with the format of financial statements
prescribed by the State Bank of Pakistan (SBP) vide BPRD Circular No. 02, dated January 25, 2018.
2.3 In accordance with the directives of the Federal Government regarding the shifting of the banking system to Islamic modes, th
State Bank of Pakistan 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 profit in price on deferred payment basis
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 profit thereon.
2.4 The unconsolidated financial statements are presented in Pak Rupees, which is the Bank’s functional and presentation currenc
its primary economic environment. The amounts are rounded off to the nearest thousand.
3. STATEMENT OF COMPLIANCE
3.1 These unconsolidated financial statements have been prepared in accordance with accounting and reporting standards as applicable in
Pakistan. The accounting and reporting standards comprise of:
– International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as are notified und
Companies Act, 2017;
– Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan as are notified under the Compa
Act, 2017;
– Provisions of and directives issued under the Banking Companies Ordinance, 1962, the Companies Act, 2017; and
– Directives issued by the SBP and the Securities and Exchange Commission of Pakistan (SECP).
Whenever the requirements of the Banking Companies Ordinance, 1962, Companies Act, 2017 or the directives issued by th
SBP and the SECP differ with the requirements of IFRS or IFAS, requirements of the Banking Companies Ordinance, 1962,
Companies Act, 2017 and the said directives shall prevail.
The State Bank of Pakistan has deferred the applicability of International Accounting Standards 40, ‘Investment Property’ fo
Banking Companies through BSD Circular No. 10 dated August 26, 2002. The Securities and Exchange Commission of Pak
(SECP) has deferred applicability of IFRS-7 “Financial Instruments: Disclosures” on banks through S.R.O 411(1) /2008
dated April 28, 2008. Accordingly, the requirements of these standards have not been considered in the preparation of thes
unconsolidated financial statements. However, investments have been classified and valued in accordance with the requirem
prescribed by the State Bank of Pakistan through various circulars.
IFRS 10 Consolidated Financial Statements was made applicable from period beginning on or after January 01, 2015 vide S.
633(I)/2014 dated July 10, 2014 by SECP. However, SECP has directed through S.R.O 56(I) /2016 dated January 28, 20
that the requirements of consolidation under
section 237 of the repealed Companies Ordinance 1984 (Section 228 of Companies Act 2017) and IFRS-10 “Consolidated Financial
Statements” is not applicable in case of investment by companies in mutual funds established under Trust structure. Accordingly, the
requirements of these standards have not been considered in the preparation of these unconsolidated financial statements.
3.2 Standards, interpretations and amendments to published approved accounting standards that are effective in the current year
There are certain other new standards and interpretations of and amendments to existing accounting standards that have become applicable to the
for accounting periods beginning on or after January 1, 2021. These are considered either to not be relevant or not to have any significant impact
the Bank’s unconsolidated financial statements.
3.3 Standards, interpretations and amendments to published approved accounting standards that are not yet effective
The following other standards, amendments and interpretations of approved accounting standards are effective for accounting periods beginning on or af
January 1, 2022:
Effective date (annual periods beginning
on or after)
Property, Plant and Equipment: Proceeds before intended use

– Amendments to IAS 16 January 1, 2022
Cost of Fulfilling an Onerous Contract – Amendments to IAS 37 January 1, 2022 Updating a Reference to the Conceptual
Framework – Amendments
to IFRS 3 January 1, 2022
Classification of Liabilities as Current or Non-current – Amendments
to IAS 1 January 1, 2024
Amended Definition of Accounting Estimates – Amendments to IAS 8 January 1, 2023 Deferred tax related to assets and liabiliti
arising from a single
transaction – Amendment to IAS 12 January 1, 2023
IFRS 9, Financial Instruments: Classification and Measurement, addresses recognition, classification, measurement and derecognition
financial assets and financial liabilities. The standard has also introduced a new impairment model for financial assets which requ
recognition of impairment charge based on an ‘Expected Credit Losses’ (ECL) approach rather than the ‘incurred credit losses’ approa
currently followed. The ECL approach has an impact on all assets of the Bank which are exposed to credit risk.
As per the SBP’s BPRD Circular Letter no. 24 dated July 5, 2021, the applicability of IFRS 9 to banks in Pakistan has be
deferred to accounting periods beginning on or after January 1, 2022. The impact of the application of IFRS 9 in Pakistan
the Bank’s financial statements is being assessed as per aforementioned circular, however, SBP’s final instructions are awaite
These unconsolidated financial statements have been prepared in accordance with the existing prudential regime to the extent of
Bank’s domestic operations, whereas the requirements of this standard are incorporated for overseas jurisdictions where IFRS 9 has be
adopted.
Including the above, there are other new and amended standards and interpretations that are mandatory for the Bank’s accounti
periods beginning on or after January 1, 2022 but are considered not to be relevant or do not to have any significant impact on the Bank
unconsolidated financial statements and are therefore not detailed in these unconsolidated financial statements.
3.4 Critical accounting estimates and judgements

The preparation of unconsolidated financial statements in conformity with the approved accounting standards requires the use of certain critical
accounting estimates. It also requires the management to exercise its judgment in the process of applying the Bank’s accounting policies.
Estimates and
judgments are continually evaluated and are based on historical experiences, including expectations of future events that are believed to
reasonable under the circumstances. Revisions to accounting estimates are recognized in the period in which the estimates are revised i
revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods. T
areas where various assumptions and estimates are significant to the Bank’s financial statements or where judgment was exercised in th
application of accounting policies are as follows:
a) Classification of investments
In classifying investments, the Bank follows the guidance provided in SBP circulars:
– Investments classified as ‘held for trading’, are securities which are acquired with an intention to trade by taking advantage of shor
term market / interest rate movements and are to be sold within 90 days of acquisition.
– Investments classified as ‘held to maturity’ are non-derivative financial assets with fixed or determinable payments and f
maturity. In making this judgment, the Bank evaluates its intention and ability to hold such investment to maturity.
– The investments other than those in subsidiaries and associates which are not classified as ‘held for trading’ or ‘held to maturity’ a
classified as ‘available for sale’.
b) Provision against advances

The Bank reviews its loan portfolio to assess the amount of non-performing advances and provision required there against on regular b
While assessing this requirement, various factors including the delinquency in the account, financial position of the borrowers and the
requirements of the Prudential Regulations are considered.
The amount of general provision is determined in accordance with the relevant regulations and
management’s judgment as explained in note 11.4.4.
c) Impairment of ‘available for sale’ equity investments
The Bank determines that ‘available for sale’ equity investments are impaired when there has been a significant or prolonged decline in
fair value below its 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. In addition, the impairment may be appropriate when there is an evi
of deterioration in the financial health of the investee and sector performance, changes in technology and operational/financial cash flo
d) Taxation
In making the estimates for income taxes currently payable by the Bank, the management considers the current income tax laws and th
decisions of appellate authorities on certain issues in the past.
e) Fair value of derivatives

The fair values of derivatives which are not quoted in active markets are determined by using valuation techniques. The valuation
techniques take into account the relevant underlying parameters including foreign currency involved, interest rates, yield curves, volati
contracts duration etc.
f) Depreciation, amortization, impairment and revaluation of operating fixed assets

The management reviews the useful lives and residual values of assets annually by considering expected pattern of economic
benefit that the management expects to drive from the item and the maximum period up to which such benefits are expected to be avail
Any change in estimates in future years might affect the carrying amounts of the respective items of assets with a corresponding effect
the depreciation charge and impairment. Such change is accounted for as change in accounting estimates in accordance with
International Accounting Standard (IAS) 8 “Accounting Policies, Changes in Accounting Estimates and Errors”. Further, the B
estimates the revalued amount of land and buildings on a regular basis. The estimates are based on valuations carried out by independ
professional valuers under the market conditions.
g) Staff retirement benefits
Certain actuarial assumptions have been adopted as disclosed in note 38 of these unconsolidated financial statements for the actuarial valuation o
retirement benefit plans. Actuarial assumptions are entity’s best estimates of the variables that will determine the ultimate cost of provid
post employment benefits. Changes in these assumptions in future years may affect the liability / asset under these plans in those years.
h) Lease term for lease liability and Right-Of-Use-Asset

The Bank applies judgment to determine the lease term for some lease contracts in which it is a lessee that include renewal options. The assessme
whether the Bank is reasonably certain to exercise such options impacts the lease term, which significantly affects the amount of lease liabilities a
right-of-use assets recognized.
i) Provision and contingent assets and liabilities

Provisions are recognized when the Bank has a legal or constructive obligation as a result of past events, it is probable that an outflow of resource
will be required to settle the obligation and a reliable estimate of the amount can be made. Provisions are reviewed at each reporting date and are
adjusted to reflect the current best estimates. Contingent assets are not recognized and are also not disclosed until an inflow of economic bene
probable. Contingent liabilities are not recognized and are disclosed unless the probability of an outflow of resources embodying economic
benefits is remote.
4. BASIS OF MEASUREMENT
These unconsolidated financial statements have been prepared under the historical cost convention except that certain classes of fixed assets and non-bank
assets acquired in satisfaction of claims are stated at revalued amounts and certain investments and derivative financial instruments have been marked to
market and are carried at fair value. In addition, obligations in respect of staff retirement benefits and lease liabilities which have been carried at present v
and right of use assets which are initially measured at an amount equal to the corresponding lease liability and depreciated over the respective lease terms
5. FINANCIAL RISK MANAGEMENT

These risk management policies continue to remain robust and the Bank is reviewing its portfolio regularly and conducts rapid portfolio reviews in line w
emerging risks. Detailed disclosure on financial risk management has been reported in Note 45 to the unconsolidated financial statements.
6. 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:
6.1 IFRS 16 - Lease Liability & Right of Use Assets
The bank enters into leasing arrangements for its branches and offices. Rental contracts are typically for a fixed period and may have extension options. A
inception of a contract, the Bank assesses whether a contract is, or contains, a lease based on whether the contract conveys the right to control t
use of an identified asset for a period of time in exchange for consideration. Lease terms are negotiated on an individual basis and contain a wide range of
different terms and conditions.
The lease liability is initially measured at the present value of lease payments to be made over the term of the lease, discounted usin
Banks’s incremental borrowing rate. The lease liability is subsequently measured at amortized cost using the effective interes
rate method. The carrying amount is remeasured/adjusted if there are changes in the future cash flows or the lease term.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicab
any lease payments made at or before the commencement date. On subsequent measurement, right-of-use assets are stated at
less any accumulated depreciation / accumulated impairment losses and are adjusted for any remeasurement of the lease liability.
Right-of-use assets are depreciated on a straight line basis over the lease term as this method closely reflects the expected pa
of consumption of future economic benefits. Carrying amount of the lease liability is derecognized upon termination of the le
contract with corresponding adjustment to right-of-use asset. Gain or loss on termination of lease contract is recognized in th
profit and loss account.
The Bank has elected not to recognize a right-of-use asset and the corresponding lease liability for short-term leases
terms of 12 months or less and leases of low-value assets. Payments associated with these leases are recognized as an expens
the profit or loss account on a straight- line basis.
When there is a change in scope of a lease, or the consideration for a lease, that was not part of the original terms and condit
of the lease is accounted for as a lease modification. The lease modification is accounted for as a separate lease if modificatio
increase the scope of lease by adding the right to use one or more underlying assets and the consideration for lease increases
amount that is commensurate with the stand-alone price for the increase in scope adjusted to reflect the circumstances of the
particular contracts, if any. When the lease modification is not accounted for as a separate lease, the lease liability is remeasu
and corresponding adjustment is made to right-of- use asset.
6.2 Investments
The Bank classifies its investments as follows:
Held for trading
These are securities, which are either acquired for generating profit from short-term fluctuations in market prices, interest rate movements,
dealers 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 maturity in respect of which the Bank has the positive intent and
ability to hold to maturity.
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 maturit
categories.
Initial measurement
Investments are initially recognized at cost which in case of investments other than ‘held for trading’ include transaction costs assoc
with the investment. Transaction costs on investments held for trading are expensed in the profit and loss account.
All purchases and sales of investments that require delivery within the time frame established by regulation or market
convention are recognized at the trade date. Trade date is the date on which the Bank commits to purchase or sell the investment.
Subsequent measurement
In accordance with the requirements of the SBP, quoted securities, other than those classified as ‘held to maturity’, investments in
subsidiaries and investments in associates are subsequently re-measured to market value. Surplus / deficit arising on revaluation of
quoted securities which are classified as ‘available for sale’, is taken to surplus / deficit on revaluation of investments through statem
of comprehensive income in equity till disposal at which time it is recorded in profit and loss account.
Surplus / deficit arising on revaluation of quoted securities which are classified as ‘held for trading’, is taken to the profit and loss
account, currently.
Unquoted equity securities (excluding investments in subsidiaries and associates) are valued at the lower
of cost and break-up value. Break-up value of equity securities is calculated with reference to the net
assets of the investee company as per the latest available financial statements. Investments classified as
‘held to maturity’ are carried at amortized cost less accumulated impairment losses, if any.
Investments in Subsidiaries and Associates
Associates are all entities over which the Bank has significant influence but not control. Subsidiaries are all entities over which the Bank h
the power to govern the financial and operating policies accompanying a shareholding of more than one half of the voting rights. Investm
in subsidiaries and investments in associates are carried at cost less accumulated impairment losses, if any.
Impairment
Provision for impairment in the values of securities (except debentures, participation term certificates and term finance certificates) is made
currently. Impairment of ‘available for sale’ equity investments is discussed in 3.4(c). Provisions for impairment in value of debentures,
participation term certificates and term finance certificates are made as per the requirements of the Prudential Regulations issued by the SBP.
Impairment against investment in subsidiaries and associates is assessed as per the requirements of
IAS 36.
6.3 Sale and repurchase agreements
Securities sold subject to a repurchase agreement (repo) are retained in these unconsolidated financial statements as investments and the counter p
liability is included in borrowings. Securities purchased under an agreement to resell (reverse repo) are not recognized in these unconsolidated financial
statements as investments and the amount extended to the counter party is included in lending’s to financial institutions. The difference between t
purchase / sale and re-sale / re-purchase price is recognized as mark-up income / expense on a time proportion basis, as the case may be.
6.4 Advances
Advances are stated net of specific and general provisions. Specific provision is determined on the basis of the Prudential Regulations and other directive
issued by the SBP and charged to the profit and loss account. Provisions are held against identified as well as unidentified losses. Provisions again
unidentified losses include general provision in accordance with the applicable requirements of the Prudential Regulations for Consumer Financing a
Prudential Regulations for Small and Medium Enterprise Financing issued by the SBP and provision based on historical loss experience on advances.
General provisions pertaining to overseas advances are made in accordance with the requirements of the regulatory authorities of the respective countries
Advances are written off when there is no realistic prospect of recovery.
Leases where the Bank transfers substantially all the risks and rewards incidental to ownership of an asset to the lessee are classified as finance
leases. A receivable is recognized at an amount equal to the present value of the lease payments including any guaranteed residual value. Finan
lease receivables are included in advances to the customers.
6.5 Fixed assets and depreciation

Fixed assets other than land and buildings are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Buildings
carried at revalued amount less any accumulated depreciation and subsequent impairment losses, if any. Land is carried at revalued amount less any
subsequent impairment losses, if any. Cost of property and equipment of foreign operations includes exchange differences arising on currency translation
year-end rates.
Capital work-in-progress is stated at cost less accumulated impairment losses, if any. These are
transferred to specific assets as and when assets become available for use.
Depreciation on all fixed assets (excluding land) is charged using the straight line method in accordance with the rates specified in note
to these unconsolidated financial statements and after taking into account residual value, if any. The residual values, useful lives and
depreciation methods are reviewed and adjusted, if appropriate, at each reporting date.
Depreciation on additions is charged from the month the assets are available for use while no
depreciation is charged in the month in which the assets are disposed off.
Land and buildings are revalued by independent, professionally qualified valuers with sufficient regularity to ensure t
their net carrying amount does not differ materially from their fair value. An increase arising on revaluation is credited to the
surplus on revaluation of fixed assets account. A decrease arising on revaluation of fixed assets is adjusted against the surplu
that asset or, if no surplus exists, is charged to the profit and loss account as an impairment of the asset. A surplus arising
subsequently on an impaired asset is reversed through the profit and loss account up to the extent of the original impairment.
Surplus on revaluation of fixed assets (net of associated deferred tax) to the extent of the incremental
depreciation charged on the related assets is transferred to unappropriated profit.
Gains / losses on sale of property and equipment are credited / charged to the profit and loss account currently, except that th
related surplus on revaluation of land and buildings (net of deferred taxation) is transferred directly to unappropriated profit.
Subsequent costs are included in the asset’s carrying amount or are recognized as a separate asset, as appropriate, only when
probable that future economic benefits associated with the item will flow to the Bank and the cost of the item can be measure
reliably. All other repairs and maintenance are charged to the profit and loss account.
6.5.1 Intangible assets

Intangible assets are stated at cost less accumulated amortization and accumulated impairment losses, if any. Intangible assets ar
amortized from the month when these assets are available for use, using the straight line method, whereby the cost of the intangible ass
are amortized over its estimated useful lives over which economic benefits are expected to flow to the Bank. The useful lives are review
and adjusted, if appropriate, at each reporting date.
6.6 Impairment
The carrying amount of assets are reviewed at each reporting date for impairment whenever events or changes in circumstances indicat
the carrying amounts of the 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 amounts. The resulting impairment loss is taken to the profit and loss
account except for impairment loss on revalued assets, which is adjusted against the related revaluation surplus to the extent that the
impairment loss does not exceed the surplus on revaluation of that asset.
6.7 Staff retirement benefits

The Bank operates the following staff retirement benefits for its employees:
a) For clerical / non-clerical staff who did not opt for the new scheme, the Bank operates the following:
– an approved contributory provident fund;
– an approved gratuity scheme; and
– a contributory benevolent scheme
b) For clerical / non-clerical staff who joined the Bank after the introduction of the new scheme and for others who opted for the
scheme introduced in 1975, the Bank operates the following:
– an approved non-contributory provident fund introduced in lieu of the contributory provident fund;
– an approved pension fund; and
– contributory benevolent scheme
c) For officers who joined the Bank after the introduction of the new scheme and for others who opted for the new scheme introduced in 19
the Bank operates the following:
– an approved pension fund, and
– contributory benevolent fund.
However, the management has replaced the pension benefits for employees in the officer category
with a contributory provident fund for services rendered after December 31, 2003.
d) For executives and officers who joined the Bank on or after January 01, 2000, the Bank operates an
approved contributory provident fund.
e) Post retirement medical benefits to entitled employees.
Annual contributions towards the defined benefit plans and schemes are made on the basis of actuarial advice using the Projected Unit C
Method. The above benefits are payable to staff at the time of separation from the Bank’s services subject to the completion of qualifying period
service. Actuarial gains / losses arising from experience adjustments and changes in actuarial assumptions are recognized in other Comprehensive
Income in the period of occurrence.
Past service cost is the change in the present value of the defined benefit obligation resulting from a plan amendment or curtailment. The Bank
recognizes past service cost as an expense at the earlier of the following dates:
(i) when the plan amendment or curtailment occurs; and
(ii) when the Bank recognizes related restructuring costs or termination benefits.
Employees’ compensated absences

Liability in respect of employees’ compensated absences is accounted for in the year in which these are earned on the basis of actuarial
valuation carried out using the Projected Unit Credit Method. Actuarial gains / losses arising from experience adjustments and changes
actuarial assumptions are recognized in Profit and Loss account in the period of occurrence.
6.8 Taxation
Current and prior years
Provision for current taxation is based on taxable income at the current rates of taxation after taking into consideration available tax credits and
rebates. The charge for current tax also includes adjustments where considered necessary, relating to prior years which arise from assessments
framed / finalized during the year.
Deferred
Deferred tax is recognized using the balance sheet liability method on all temporary differences between the amounts attributed
assets and liabilities for financial reporting purposes and amounts used for taxation purposes. The Bank records deferred tax assets /
liabilities using the tax rates, enacted or substantively enacted by the reporting date expected to be applicable at the time of its reversal.
Deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset
be utilized. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realized. The Ba
also recognizes deferred tax asset / liability on deficit / surplus on revaluation of securities and deferred tax liability on surplus on
revaluation of fixed assets which is adjusted against the related deficit / surplus in accordance with the requirements of International
Accounting Standard (IAS) 12, ‘Income Taxes’.
Deferred tax liability is not recognized in respect of taxable temporary differences associated with exchange translation reser
of foreign operations, where the timing of the reversal of the temporary difference can be controlled and it is probable that th
temporary differences will not reverse in the foreseeable future.
6.9 Provisions
Provisions are recognized when the Bank has a legal or constructive obligation as a result of past events and it is probable that an outflo
resources will be required to settle the obligation and a reliable estimate of the amount can be made. Provisions are reviewed at each
reporting date and are adjusted to reflect the current best estimates.
6.10 Foreign currencies
6.10.1 Foreign currency transactions
Transactions in foreign currencies other than the results of foreign operations discussed in note
6.10.2 are translated to Pak Rupees at the foreign exchange rates prevailing on the transaction date. Monetary assets and liabilities in fo
currencies are expressed in Pak Rupee terms at the rates of exchange prevailing at the reporting date. Forward foreign exchange contra
are valued at the rates applicable to their respective maturities.
6.10.2 Foreign operations

The assets and liabilities of foreign branches are translated to Pak Rupees at exchange rates prevailing at the statement of financial posi
date. The results of foreign operations are translated to Rupees at the average rate of exchange for the year.
6.10.3 Translation gains and losses

Translation gains and losses are included in the profit and loss account, except those arising on the translation of the Bank’s net investm
in foreign branches, which are taken to the capital reserve (exchange translation reserve) until the disposal of the net investment,
which time these are recognized in the profit and loss account.
6.10.4 Commitments
Commitments for outstanding forward foreign exchange contracts are disclosed in these unconsolidated financial statemen
committed amounts. Contingent liabilities / commitments for letters of credit and letters of guarantee denominated in foreign
currencies are expressed in Pak Rupee terms at the rates of exchange prevailing at the statement of financial position date.
6.11 Acceptances
Acceptances comprise undertakings by the Bank to pay bills of exchange drawn on customers. The Bank expects most accepta
to be simultaneously settled with the reimbursement from the customers.
6.12 Revenue recognition

– Mark-up / interest on advances and returns on investments are recognized on a time proportion basis using the effective interest
method except that mark-up / interest on non-performing advances and investments is recognized on a receipt basis, in accordance
the requirements of the Prudential Regulations issued by the SBP or as permitted by the regulations of the overseas regulatory
authorities of countries where the branches operate. Where debt securities are purchased at premium or discount, such premium / disco
amortized through the profit and loss account over the remaining period of maturity.
– Financing method is used in accounting for income from lease financing. Under this method, the unearned lease income (excess of
sum of total lease rentals and estimated residual value over the cost of leased assets) is deferred and taken to income over the term of th
lease period so as to produce a constant periodic rate of return on the outstanding net investment in lease. Gains / losses on termination
lease contracts are recognized as income when these are realized.
– Fee, brokerage and commission income is recognised on an accrual basis.

– Dividend income is recognized when the Bank’s right to receive dividend is established.
– Gain / loss on sale of investments is credited / charged to profit and loss account.
6.13 Assets acquired in satisfaction of claims

Non-Banking Assets (NBA) acquired in satisfaction of claims are carried at revalued amounts less accumulated depreciation and impairment loss
These assets are revalued by professionally qualified valuers with sufficient regularity to ensure that their net carrying value does not differ mater
from their fair value. A surplus arising on revaluation of property is credited to the ‘surplus on revaluation of non banking assets’ account through
statement of comprehensive income in equity and any deficit arising on revaluation is taken to profit and loss account directly. Legal fees, transfe
costs and direct costs of acquiring title to property are charged to profit and loss account and not capitalized.
6.14 Cash and cash equivalents
Cash and cash equivalents include cash and balances with treasury banks and balances with other banks (net of overdrawn Nostro balances) in cu
and deposit accounts.
6.15 Financial instruments

6.15.1 Financial assets and financial liabilities
Financial instruments carried on the statement of financial position include cash and balances with treasury banks, balances with other banks, len
to financial institutions, investments, advances, other assets, bills payable, borrowings, deposits and other liabilities. The particular recogn
methods adopted for significant financial assets and financial liabilities are disclosed in the individual policy statements associated with these ass
and liabilities.
6.15.2 Derivative financial instruments

Derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequent
remeasured at their fair value using valuation techniques. All the derivative financial instruments are carried as an asset when the fair value is pos
and as a liability when the fair value is negative. Any change in the fair value of derivative financial instruments is taken to the profit and loss acc
currently.
6.15.3 Off setting

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

Borrowings / deposits are recorded at the proceeds received. The cost of borrowings / deposits is recognized as an expense in the period in which
is incurred.
6.17 Segment reporting

A segment is a distinguishable component of the Bank that is engaged in providing products or services (business segment) or in
providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that a
different from those of other segments. The Bank’s primary format of reporting is based on business segments.
6.17.1 Business segments

Retail banking
This includes retail lending and deposits, banking services, cards and branchless banking.
Corporate banking
This comprises of loans, deposits, project financing, trade financing, investment banking and other banking activities / with
Bank’s corporate and public sector customers.
Consumer Banking
This segment primarily constitutes consumer financing activities with individual customers of the Bank. Product suite
offered to these customers include credit cards, auto loans, housing finance and personal loans.
Treasury
This includes fixed income, equity, foreign exchange, credit, funding, own position securities, lendings and borrowings and
derivatives for hedging and market making.
International Banking
This comprises of loans, deposits, project financing, trade financing, investment banking and other banking activities by Ban
overseas operations.
Others
This includes the head office related activities and other functions which cannot be classified in any of the above segments.
6.17.2 Geographical segments
The Bank operates in three geographic regions being:
– Pakistan
– South Asia
– Middle East
6.18 Dividend distribution and appropriation

Dividends (including bonus dividend) and other appropriations (except appropriations which are required by law) are recognized
the period in which these are approved.
6.19 Business combination

Business combinations other than under common control transaction are accounted for by applying the acquisition method. The cost of
acquisition is measured as the fair value of assets given, equity instruments issued and the liabilities incurred or assumed at the date of
acquisition. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration
arrangement, if any. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabil
assumed in a business combination are measured initially at their fair values at the acquisition date. The excess of the consideration
transferred over the fair value of the identifiable net assets acquired is recorded as goodwill. If this is less than the fair value of the net
acquired in the case of a bargain purchase, the difference is recognized directly in the profit and loss account or as directed by the SBP
6.20 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 ordi
shareholders of the Bank by the weighted average number of ordinary shares outstanding during the year.
2021 2020
'000)
48,248,955
(1,209,753)
47,039,202
2,005,061
1,216,784
30.049
318.024
7,313,166
964.978
(3.976)
74.827
(72.601)
15.637
224
1,106,824
(72.194)
12,896,803
59,936,005
(16,049,395)
8,179,715
26,262,334
9,710,281
28,102,935
12,158,994
75,447,775
144,739,045
(18,195,415)
214,150,399
(302.940)
(16,078,289)
285,808,110
(286,438,369)
17,363,419
1,179,851
(2,791,537)
(298.880)
186.909
39.000
99.694
201.352
(270,458,561)
(11,750,637)
(1,682,647)
(13,433,284)
1,595,436
3,511,701
142,302,153
145,813,854
s.
Shahzad Hussain
Director
in commercial banking and related services. The

and Principal Office are situated at MCB -15 Main
and 11 branches (2020: 11 branches) outside
MCB Bank Limited. The consolidated financial
mity with the format of financial statements

uary 25, 2018.
ifting of the banking system to Islamic modes, the

ms of trade-related modes of financing include
ropriate profit in price on deferred payment basis. The
olidated financial statements as such but are
f profit thereon.
is the Bank’s functional and presentation currency of

nd.
unting and reporting standards as applicable in
nting Standards Board (IASB) as are notified under the
tants of Pakistan as are notified under the Companies
he Companies Act, 2017; and

tan (SECP).
ompanies Act, 2017 or the directives issued by the

ents of the Banking Companies Ordinance, 1962, the
ccounting Standards 40, ‘Investment Property’ for

The Securities and Exchange Commission of Pakistan
osures” on banks through S.R.O 411(1) /2008
ve not been considered in the preparation of these
ified and valued in accordance with the requirements
od beginning on or after January 01, 2015 vide S.R.O

ough S.R.O 56(I) /2016 dated January 28, 2016,
ct 2017) and IFRS-10 “Consolidated Financial

blished under Trust structure. Accordingly, the
nconsolidated financial statements.
that are effective in the current year

ing standards that have become applicable to the Bank
be relevant or not to have any significant impact on
standards that are not yet effective
fective for accounting periods beginning on or after
022
1, 2022 Updating a Reference to the Conceptual
22
024
1, 2023 Deferred tax related to assets and liabilities
023
n, classification, measurement and derecognition of

mpairment model for financial assets which requires
ch rather than the ‘incurred credit losses’ approach as
are exposed to credit risk.
ability of IFRS 9 to banks in Pakistan has been

act of the application of IFRS 9 in Pakistan on
however, SBP’s final instructions are awaited.
h the existing prudential regime to the extent of the

d for overseas jurisdictions where IFRS 9 has been
tions that are mandatory for the Bank’s accounting

do not to have any significant impact on the Bank’s
ated financial statements.
ing standards requires the use of certain critical

of applying the Bank’s accounting policies.
g expectations of future events that are believed to be
in the period in which the estimates are revised if the
evision affects both current and future periods. The
statements or where judgment was exercised in the
an intention to trade by taking advantage of short

.
ts with fixed or determinable payments and fixed
hold such investment to maturity.
sified as ‘held for trading’ or ‘held to maturity’ are
and provision required there against on regular basis.

ount, financial position of the borrowers and the
e relevant regulations and
ere has been a significant or prolonged decline in the

es judgment. In making this judgment, the Bank
pairment may be appropriate when there is an evidence
s in technology and operational/financial cash flows.
ment considers the current income tax laws and the
y using valuation techniques. The valuation

ency involved, interest rates, yield curves, volatilities,
sets
y by considering expected pattern of economic
up to which such benefits are expected to be available.
ective items of assets with a corresponding effect on
ge in accounting estimates in accordance with
counting Estimates and Errors”. Further, the Bank
s are based on valuations carried out by independent
financial statements for the actuarial valuation of staff
at will determine the ultimate cost of providing
/ asset under these plans in those years.
essee that include renewal options. The assessment of

gnificantly affects the amount of lease liabilities and
t events, it is probable that an outflow of resources

sions are reviewed at each reporting date and are
ot disclosed until an inflow of economic benefits is
of an outflow of resources embodying economic
pt that certain classes of fixed assets and non-banking

ative financial instruments have been marked to
se liabilities which have been carried at present value
y and depreciated over the respective lease terms.
rly and conducts rapid portfolio reviews in line with

consolidated financial statements.
stent with those of the previous financial year:
a fixed period and may have extension options. At

her the contract conveys the right to control the
n an individual basis and contain a wide range of
ade over the term of the lease, discounted using the

d at amortized cost using the effective interest
future cash flows or the lease term.
of the lease liability, adjusted for, as applicable,

measurement, right-of-use assets are stated at cost
for any remeasurement of the lease liability.
m as this method closely reflects the expected pattern
iability is derecognized upon termination of the lease
n termination of lease contract is recognized in the
orresponding lease liability for short-term leases with

ted with these leases are recognized as an expense in
that was not part of the original terms and conditions

is accounted for as a separate lease if modification
g assets and the consideration for lease increases by an
scope adjusted to reflect the circumstances of the
r as a separate lease, the lease liability is remeasured
tions in market prices, interest rate movements,

m profit taking exists.
espect of which the Bank has the positive intent and
ot fall under the ‘held for trading’ or ‘held to maturity’
han ‘held for trading’ include transaction costs associated

nsed in the profit and loss account.
me frame established by regulation or market

Bank commits to purchase or sell the investment.
ose classified as ‘held to maturity’, investments in

ket value. Surplus / deficit arising on revaluation of
deficit on revaluation of investments through statement
rofit and loss account.
as ‘held for trading’, is taken to the profit and loss
s) are valued at the lower

h reference to the net
classified as
bsidiaries are all entities over which the Bank has
g of more than one half of the voting rights. Investments
nt losses, if any.
certificates and term finance certificates) is made

isions for impairment in value of debentures,
s of the Prudential Regulations issued by the SBP.
ments of
nancial statements as investments and the counter party

e not recognized in these unconsolidated financial
’s to financial institutions. The difference between the
oportion basis, as the case may be.
sis of the Prudential Regulations and other directives

d as well as unidentified losses. Provisions against
rudential Regulations for Consumer Financing and
n based on historical loss experience on advances.
he regulatory authorities of the respective countries.
ship of an asset to the lessee are classified as finance

ments including any guaranteed residual value. Finance
d accumulated impairment losses, if any. Buildings are

y. Land is carried at revalued amount less any
xchange differences arising on currency translation at
f any. These are
hod in accordance with the rates specified in note 12.2

ue, if any. The residual values, useful lives and
.
vailable for use while no

ed valuers with sufficient regularity to ensure that
n increase arising on revaluation is credited to the
ation of fixed assets is adjusted against the surplus of
an impairment of the asset. A surplus arising
count up to the extent of the original impairment.
extent of the incremental

rofit.
he profit and loss account currently, except that the
n) is transferred directly to unappropriated profit.
zed as a separate asset, as appropriate, only when it is

the Bank and the cost of the item can be measured
s account.
ed impairment losses, if any. Intangible assets are

ne method, whereby the cost of the intangible assets
ed to flow to the Bank. The useful lives are reviewed
never events or changes in circumstances indicate that

d where the carrying value exceeds the estimated
ng impairment loss is taken to the profit and loss
elated revaluation surplus to the extent that the
operates the following:
the new scheme and for others who opted for the new
ributory provident fund;
s who opted for the new scheme introduced in 1977,
rovident fund;
cer category
k operates an
sis of actuarial advice using the Projected Unit Credit

es subject to the completion of qualifying period of
sumptions are recognized in other Comprehensive
m a plan amendment or curtailment. The Bank
n which these are earned on the basis of actuarial

arising from experience adjustments and changes in
rence.
ing into consideration available tax credits and

ng to prior years which arise from assessments
orary differences between the amounts attributed to

rposes. The Bank records deferred tax assets /
pected to be applicable at the time of its reversal.
e profits will be available against which the asset can
hat the related tax benefit will be realized. The Bank
ities and deferred tax liability on surplus on
ordance with the requirements of International
rences associated with exchange translation reserves

erence can be controlled and it is probable that the
sult of past events and it is probable that an outflow of

t can be made. Provisions are reviewed at each
iscussed in note
nsaction date. Monetary assets and liabilities in foreign
reporting date. Forward foreign exchange contracts
rates prevailing at the statement of financial position

xchange for the year.
rising on the translation of the Bank’s net investment

rve) until the disposal of the net investment, at
osed in these unconsolidated financial statements at

tters of guarantee denominated in foreign
he statement of financial position date.
n on customers. The Bank expects most acceptances
me proportion basis using the effective interest

nts is recognized on a receipt basis, in accordance with
d by the regulations of the overseas regulatory
ed at premium or discount, such premium / discount is
his method, the unearned lease income (excess of the

s deferred and taken to income over the term of the
nvestment in lease. Gains / losses on termination of
lished.
ss accumulated depreciation and impairment loss.

that their net carrying value does not differ materially
evaluation of non banking assets’ account through
rofit and loss account directly. Legal fees, transfer
capitalized.
r banks (net of overdrawn Nostro balances) in current
th treasury banks, balances with other banks, lendings

its and other liabilities. The particular recognition
idual policy statements associated with these assets
vative contract is entered into and are subsequently

s are carried as an asset when the fair value is positive
cial instruments is taken to the profit and loss account
solidated financial statements when there is a legally

ssets and settle the liabilities, simultaneously.
recognized as an expense in the period in which this
ducts or services (business segment) or in

ment), which is subject to risks and rewards that are
ness segments.
ing.
ment banking and other banking activities / with
individual customers of the Bank. Product suite

and personal loans.
position securities, lendings and borrowings and
ment banking and other banking activities by Bank’s
nnot be classified in any of the above segments.

tions which are required by law) are recognized in
r by applying the acquisition method. The cost of

the liabilities incurred or assumed at the date of
ty resulting from a contingent consideration
ssets acquired and liabilities and contingent liabilities
quisition date. The excess of the consideration
dwill. If this is less than the fair value of the net assets
profit and loss account or as directed by the SBP.
d by dividing the profit or loss attributable to ordinary

ing during the year.
2021 2020
Local currency 22,275,982
Foreign currencies 6,201,240
28,477,222
ith State Bank of Pakistan in
Local currency current accounts 7.1 82,766,108

Foreign currency current accounts 7.2 2,315,211
Foreign currency deposit accounts 7.3 10,550,168
95,631,487
ith other central banks in
Foreign currency current accounts 7.4 6,728,135 11,851,3
Local currency current accounts 33,521,087

Prize bonds 255.248
164,613,179
7.1 This represents current accounts maintained with the SBP under the Cash Reserve Requirement of section 22 of the Banking Companies
Ordinance, 1962. In addition, Rs. 979.736 million have been placed in a special account under SBP directive.
7.2 This represents foreign currencies settlement account maintained with SBP.
7.3 This represents account maintained with the SBP to comply with the Special Cash Reserve requirement. This includes balance
Rs. 7,033.445 million (2020: Rs. 6,810.656 million) which carries interest rate of 0% (2020: 0%) per annum as declared by SBP.
7.4 Foreign currency current account with other central banks are maintained to meet their minimum cash
reserves and capital requirements pertaining to the foreign branches of the Bank.
2021 2020
8. BALANCES WITH OTHER BANKS

Outside Pakistan
In current account 8,494,144 21,798,363

In deposit account 8.1 10,336,166 2,231,965
18,830,310 24,030,328
18,830,310 24,030,328
8.1 Balances with other banks outside Pakistan in deposit accounts carry interest rate of 0.40% to 6.00%
(2020: 1.5%) per annum.
2021 2020
7. CASH AND BALANCES WITH TREASURY BANKS
In hand
With National Bank of Pakistan in
9. LENDINGS TO FINANCIAL INSTITUTIONS
Call / clean money lendings 9.1 27,571,021 11,002,195

Repurchase agreement lendings (Reverse Repo) 9.2 14,896,089 6,137,258
42,467,110 17,139,453
22,094,317
6,183,785
28,278,102
47,257,342
1,966,635
10,215,984
59,439,961
11,851,311
21,673,576
937.889
122,180,839
22 of the Banking Companies
ment. This includes balance of

declared by SBP.
21,798,363
2,231,965
24,030,328
24,030,328
11,002,195
6,137,258
17,139,453
9.1 Call money lending carries mark-up rate ranging from 0.15% to 10.45% (2020: 0.1% to 4.55%) per
annum and is due to mature in February 2022.
9.2 Repurchase agreement lendings carry mark-up rate ranging from 10.50% to 10.70% (2020: 6.40%
to 7.10%) per annum and is due to mature in January 2022.
2021 2020
(Rupees in '000)
9.3 Particulars of lending
In local currency 18,396,089 6,137,258

In foreign currencies 24,071,021 11,002,195
42,467,110 17,139,453
2021 2020
Held by Further given Total Held by Further given Total Bank as collate
Bank as collateral
(Rupees in '000)
9.4 Securities held as collateral against

lendings to financial institutions
Market Treasury Bills
14,896,089 – 14,896,089 6,137,258 – 6,137,258

10. INVESTMENTS
10.1 Investments by type:
2021 2020
Cost / Provision Surplus / Carrying Cost / Provision Surplus / Carrying
Note amortised for (Deficit) value amortised for (Deficit)

cost diminution cost dimin
(Rupees in
Held–for–trading securities
Federal Government Securities 12.467 – (12) 12.455 1,309,116 – (224)

12.467 – (12) 12.455 1,309,116 – (224)
Available–for–sale securities
Federal Government Securities 977,660,377 (22.288) (9,111,067) 968,527,02 946,641,148 (4.719) 9,537,433
2
Shares and units 31,011,555 (10,096,489 1,342,189 22,257,255 26,582,088 (10,116,28 3,119,160
Non Government Debt Securities 1,443,840 –) 5.900 1,449,740 1,797,840 3)
– 2.252
Foreign Securities 7,557,240 (1.748) (5.424) 7,550,068 7,463,939 (1.714) 17.509
1,017,673,0 (10,120,525 (7,768,402) 999,784,08 982,485,015 (10,122,71 12,676,354
12 ) 5 6)
Held–to–maturity securities
Federal Government Securities 14,360,970 (52.637) – 14,308,333 4,612,390 (11.542) –
Provincial Government Securities 118 (118) – – 118 (118) –

Non Government Debt Securities 8,155,476 (477.541) – 7,677,935 9,270,317 (490.341) –
Foreign Securities 792.607 (8.632) – 783.975 3,149,647 (27.281) –
23,309,171 (538.928) – 22,770,243 17,032,472 (529.282) –
Associates 10.11 700.401 – – 700.401 700.401 – –

Subsidiaries 10.11 12,319,037 (725) – 12,318,312 12,319,037 (725) –
Total Investments 1,054,014,088 (10,660,178) (7,768,414) 1,013,846,041 (10,652,723) 12,676,130
1,035,585,496 1,015,869,448
55%) per
0: 6.40%
6,137,258
11,002,195
17,139,453
er given Total Bank as collateral
6,137,258
2020
st / Provision Surplus / Carrying
amortised for (Deficit) value

on cost diminution
(Rupees in '000)
1,308,892
1,308,892
956,173,86
2
19,584,965
1,800,092
7,479,734
985,038,65
3
4,600,848
–
8,779,976
3,122,366
16,503,190
700.401
12,318,312
2,723) 12,676,130
2021 2020
Cost / Provision Surplus / Carrying Cost /
Note amortised for (Deficit) value amortised
cost diminution cost
(Rupees in '000)
10.2 Investments by segments: 598,470,191 – 256,237 598,726,428
Federal Government Securities: 349,738,865 – 9,180,611 358,919,476
Market Treasury Bills Pakistan Investment Bonds 1,791,122 (2,872) 35,195 1,823,445
Sukuks bonds 465,779 – – 465,779
Naya Pakistan Certificates Euro Bonds 325,536,27 – (478,211) 325,058,06 2,096,697 (13,389) 65,166 2,148,474
Provincial Government Securities Shares and units: 6 – (1,410) (8,648,559) 5 952,562,654 (16,261) 9,537,209
Listed Companies Unlisted Companies 660,197,52 – 16,014 651,548,96 962,083,602
Non Government Debt Securities 7 (73,515) – (323) 8 118 (118) – –
Listed Unlisted 434,622 449,226 24,999,638 (9,946,958) 3,119,160
Foreign Securities 925,513 925,513 18,171,840
Government securities Unlisted equity securities 4,939,876 4,866,038 1,582,450 (169,325) – 1,413,125
Associates 26,582,088 (10,116,283) 3,119,160
– Adamjee Insurance 992,033,814 (74,925) (9,111,079) 19,584,965
Company Limited 10.8 982,847,810 5,064,730 (16,269) 7,918 5,056,379
– Euronet Pakistan (Private) Limited 118 (118) – – 6,003,427 (474,072) (5,666) 5,523,689
Subsidiaries 11,068,157 (490,341) 2,252 10,580,068
MCB Islamic Bank Limited MCB Arif Habib Savings 10,606,326 (27,281) 17,509 10,596,554
and 29,382,484 (9,923,89 1,342,189 20,800,775 7,260 (1,714) – 5,546
Investments Limited Financial Management 1,629,071 8) – 1,456,480 10,613,586 (28,995) 17,509 10,602,100
Services (Pvt) Limited 10.9 647,880 – – 647,880
(172,591)
MCB Non–Bank Credit Organization Closed Joint 52,521 – – 52,521
Stock Company 31,011,555 (10,096,489) 1,342,189 700,401 – – 700,401
Total Investments 22,257,255 11,550,000 – – 11,550,000
320,123 – – 320,123
4,234,44 (3,469) 5,900 4,236,87 725 (725) – –
1 (474,072) – 2 448,189 – – 448,189
5,364,87 4,890,80 12,319,037 (725) – 12,318,312
5 3
9,599,316 (477,541) 5,900
9,127,675
8,342,536 (8,632) (5,424) 8,328,480

7,311 (1,748) – 5,563
8,349,847 (10,380) (5,424)

8,334,043
647,880 – – 647,880
52,521 – – 52,521
700,401 – – 700,401
11,550,000 – – 11,550,000
320,123 – – 320,123
725 (725 – –
448,189 ) – 448,189
–
12,319,037 (725) – 12,318,312

1,054,014,088 (10,660,178) (7,768,414) 1,013,846,041 (10,652,723) 12,676,130
1,035,585,496 1,015,869,448
Provision Surplus / Carrying
for (Deficit) value
diminution
– 256,237 598,726,428
– 9,180,611 358,919,476
2,872) 35,195 1,823,445
– – 465,779
3,389) 65,166 2,148,474
(16,261) 9,537,209
– –
946,958) 3,119,160
9,325) – 1,413,125
116,283) 3,119,160
6,269) 7,918 5,056,379

4,072) (5,666) 5,523,689
90,341) 2,252 10,580,068
27,281) 17,509 10,596,554
4) – 5,546
28,995) 17,509 10,602,100
– – 647,880
– – 52,521
– – 700,401
– – 11,550,000
– – 320,123
– –
– – 448,189
(725) – 12,318,312
(10,652,723) 12,676,130
2021 2020
10.2.1 Investments given as collateral
- Market Treasury Bills 107,136,184 91,279,273

- Pakistan Investment Bonds 53,303,403 1,000,283
160,439,587 92,279,556
10.3 Provision for diminution in value of investments
10.3.1 Opening balance 10,652,723 10,689,171

Exchange and other adjustments 570 13.474
Charge / (reversals)
1,956,360
Charge for the year 935.164
Reversals for the year (18.390) (1.529)
Reversal on disposals (909.889) (2,004,753)
6.885 (49.922)
Closing balance 10.3.3 10,660,178 10,652,723
10.3.2 Particulars of provision against debt securities

Category of classification
2021 2020
NPI Provision NPI Provision
(Rupees in '000)
Domestic
Loss 477.659 477.659

477.659 477.659
10.3.3 This includes a general provision of Rs 83.557 million (December 31, 2020: Rs 43.542 million) held by
overseas branches in accordance with the requirements of IFRS 9.
10.4 Quality of Available for Sale Securities
Details regarding quality of Available for Sale (AFS) securities are as follows;
2021 2020
Cost (Rupees in '000)
Federal Government Securities - Government guaranteed
Market Treasury Bills 325,523,809 597,161,075

Pakistan Investment Bonds 647,475,027 346,405,146
Euro Bonds 3,301,407 1,341,708
Sukuk Bonds 434.622 1,267,440
Naya Pakistan Certificates 925.512 465.779
977,660,377 946,641,148
ees in '000)
91,279,273
1,000,283
92,279,556
10,689,171
13.474
1,956,360
(1.529)
(2,004,753)
(49.922)
10,652,723
on
490.459 490.459
490.459 490.459
3.542 million) held by
597,161,075
346,405,146
1,341,708
1,267,440
465.779
946,641,148
2021 2020
Listed Companies and mutual funds

Automobile Assembler 1,551,062 1,418,843
Automobile Part and Accessories 413.930 413.930
Cable and Electrical Goods 536.448 536.448
Cement 2,333,482 2,050,172
Chemical 634.587 285.638
Close end Mutual Fund 1,186,851 1,186,851
Commercial Banks 3,897,895 3,002,215
Engineering 1,550,301 1,574,425
Fertilizer 2,800,992 2,754,405
Food and Personal Care Products 1,122,096 1,229,398
Glass and Ceramics 89.048 –
Insurance 753.786 599.364
Investment Banks / Companies 585.624 585.624
NIT Units 5.253 5.253
Oil and Gas Exploration Companies 3,968,160 2,873,812
Oil and Gas Marketing Companies 683.965 452.460
Open End Mutual Fund 96.361 190.083
Paper and Board 543.706 340.473
Pharmaceutical 1,048,524 941.959
Power Generation and Distribution 3,454,440 2,516,198
Refinery 684.113 887.318
Technology and Communication 1,296,309 707.827
Textile composite 129.382 430.773
Textile spinning 16.169 16.169
29,382,484 24,999,638
2021 2020
Cost Breakup value Cost Breakup value
(Rupees in '000)
Unlisted Companies
Central Depository Company Limited 184.426 819.324 184.426
First Capital Investment Private Limited 2.500 2.831 2.500
First Women Bank Limited 63.300 215.838 63.300
ISE Towers REIT Management
Company Limited 30.346 101.804 30.346
National Investment Trust Limited 1,027,651 2,006,567 1,027,651
National Institutional Facilitation Technologies 1.527 35.899 1.527
Pak Agro Storage And Service Corporation 2.500 1,567,552 2.500
1 Link Private Limited 50.000 267.895 50.000
Naymat Collateral Management Company 29.286 21.021 29.285
Pakistan Corporate Restructuring Company 51.396 48.210 –
Arabian Sea Country Club* 5.000 – 5.000
SME Bank Limited* 10.106 – 10.106
Al–Ameen Textile Mills Limited* 197 – 197
Custodian Management Services* 1.000 – 1.000
Galaxy Textile Mills Limited* 30.177 – 30.178
Pakistan Textile City Private Limited* 50.000 – 50.000
Ayaz Textile Mills Limited* 2.253 – 2.253
Musarrat Textile Mills Limited* 36.045 – 36.045
Sadiqabad Textile Mills Limited* 26.361 – 26.361
Al–Arabia Sugar Mills Limited – Preference shares* – – 4.775
Pak Elektron Limited – Preference shares 25.000 25.000 25.000
1,629,071 5,111,941 1,582,450
*These investments are fully provided.
020
1,418,843
413.930
536.448
2,050,172
285.638
1,186,851
3,002,215
1,574,425
2,754,405
1,229,398
–
599.364
585.624
5.253
2,873,812
452.460
190.083
340.473
941.959
2,516,198
887.318
707.827
430.773
16.169
24,999,638
756.153
2.667
215.838
93.780
1,661,565
51.998
1,239,050
202.032
25.876
–
–
–
–
–
–
–
–
–
–
–
25.000
4,273,959
2021 2020
Non Government Debt Securities
Listed
- AA+, AA, AA- 1,193,840

Unlisted
- AA+, AA, AA- 250.000

2021 2020
Cost Rating Cost Rating (Rupees in '000)
Foreign Securities
Government debt Securities
- Sri Lanka
7,549,929 Caa2 7,456,679 Caa1

2021 2020
Unlisted Equity Securities

Lanka Clear (Private) Limited
Credit Information Bureau of Sri Lanka Lanka Financial Services Bureau Limited 874
Society for Worldwide Inter Fund Transfer (SWIFT)
10.5 Particulars relating to Held to Maturity securities are as follows: 26
Federal Government Securities - Government guaranteed 1.748
Pakistan Investment Bonds Sukuk bonds
Euro Bonds 4.663
Provincial Government Securities 7.311
12,722,500
–
1,638,470
14,360,970
118
1 2020
t (Rupees in '000)
1,547,840
250.000
Rating (Rupees in '000)
456,679 Caa1
1 2020
t (Rupees in '000)
857
26
1.714
4.663
7.260
3,333,719
523.680
754.991
4,612,390
118
2021 2020
Non Government Debt Securities
Listed
- AAA –
- AA+, AA, AA- 2,387,280
- Unrated 49.851
2,437,131
Unlisted
- AA+, AA, AA- 4,800,967
- A+, A, A- 439.838
- Unrated 477.540
5,718,345
2021 2020
792,607 Caa2
Foreign Securities
Government Securities
- Sri Lanka
3,149,647 Caa1
10.5.1 The market value of securities classified as held-to-maturity as at December 31, 2021 amounted to
Rs. 22,217.535 million (December 31, 2020: Rs. 17,002.908 million).
10.6 “Available for sale” Market Treasury Bills and Pakistan Investment Bonds are eligible for rediscounting
with the State Bank of Pakistan.
10.7 Investments include Pakistan Investment Bonds amounting to Rs. 67.9 million (2020: Rs. 67.9 million) earmarked by the SBP ag
TT discounting facilities sanctioned to the Bank. In addition, Pakistan Investment Bonds amounting to Rs. 5 million (2020: Rs. 5 million) have b
pledged with the Controller of Military Accounts on account of Regimental Fund account and Pakistan Investment Bonds amounting to Rs. 100
million (2020: Rs. Rs. 100 million) have been pledged with the National Clearing Company of Pakistan Limited (NCCPL) on account of remova
irrevocable undertaking as alternate option for collateral against participant’s exposure in stock market.
10.8 Investment of the Bank in Adamjee Insurance Company Limited is carried at cost amounting to Rs. 647.880 million (2020: Rs.
647.880 million) as at December 31, 2021. The market value of the investment in Adamjee Insurance Company Limited as at December 31, 2021
amounted to Rs. 2,800 million (2020: Rs. 2,752.400 million).
10.9 This investment is fully provided for. The company is dormant and has no asset and liability at the
reporting dates.
10.10 Certain approved / Government securities are kept with the SBP to meet statutory liquidity requirements
calculated on the basis of domestic demand and time liabilities.
2020
in '000)
1,796,250
1,644,520
66.120
3,506,890
4,849,483
439.874
474.070
5,763,427
49,647 Caa1
mounted to
or rediscounting
020: Rs. 67.9 million) earmarked by the SBP against

ing to Rs. 5 million (2020: Rs. 5 million) have been
kistan Investment Bonds amounting to Rs. 100
akistan Limited (NCCPL) on account of removal of
market.
st amounting to Rs. 647.880 million (2020: Rs.

ance Company Limited as at December 31, 2021
ility at the
ity requirements
10.11 Summarized financial information of associates and subsidiaries
Country of % of interest Revenue Profit/ Total Assets Liabilities
Name incorporation held (loss) comprehensive after tax income / (loss)
(Rupees in '000)
2021 Pakistan 30% 720,665 13,916 13,916 773,972 632,732

Associates Pakistan 20% 23,530,811 2,408,605 1,217,969 116,278,938
Euronet Pakistan (Private) Limited 93,385,707
(unaudited based on December 31, Azerbaijan 99.94% 176,720 63,319 63,319 1,404,613
2021) 866,837
(unaudited based on September 30,
2021)
Subsidiaries
(audited based on December 31,
2021)
MCB Arif Habib Savings and
Investments Limited (audited based
on June 30, 2021)
MCB Non-Bank Credit Organization
Closed Joint Stock Company (audited
based on December 31, 2021)
Pakistan 100.00% 9,202,71 100.432

6
Pakistan 51.33% 993.695 376.434
2020
Associates
(audited based on December 31, 2020) Pakistan 30% 718,076 (84,235) (79,622) 783,908
656,585
(unaudited based on September 30, 2020) Pakistan 20% 20,596,203 1,319,951 439,880 95,997,472
74,918,209
Subsidiaries
(audited based on December 31, 2020)
Pakistan 100.00% 9,676,43 208.316

5
Pakistan 51.33% 835.520 257.669
MCB Arif Habib Savings and Investments

Limited (audited based on June 30, 2020)
MCB Non-Bank Credit Organization Closed
Joint Stock Company (audited based on
December 31, 2020) Azerbaijan 99.94% 163,849 46,863 46,863 825,024 400,034
er tax income / (loss)
773,972 632,732
116,278,938
1,404,613
(123.217) 161,267,39 150,662,838

3
376.434 2,375,511 772.381
(79,622) 783,908
1 439,880 95,997,472
260.971 141,170,886 130,443,114
257.669 2,265,572 714.877
6,863 825,024 400,034

11. ADVANCES Performing Non Performing Total
Note 2021 2020 2021 2020 2021 2020
(Rupees in '000)
Loans, cash credits, running finances, etc. 565,230,25 444,168,99 49,404,8 50,524,753 614,635,13 494,693,751
11.1 2 8 85 664,294 7 18,856,451
Bills discounted and purchased 19,852,814 18,192,157 1,085,92 20,938,734
0
Advances - gross 585,083,066 462,361,155 50,490,805 51,189,047 635,573,871 513,550,202
(45,142,956
Provision against advances )
- Specific – (5,465,459)
– (44,156,471) (45,142,956) (44,156,4
- General 11.4.4 (5,465,459 (50,608,415
(1,706,30 – – 71)
) )
9) (1,706,30
(1,706,309) (5,465,459) (44,156,471) 9)
(45,142,956) (45,862,780)
Advances - net of provision 583,376,757 456,895,696 6,334,334 6,046,091 589,711,091 462,941,787
11.1 Includes net investment in finance lease as disclosed below:

2021 2020
Not later Later than Over five Not later Later than Over
than one one and less years Total five
than one one and less years Total
year than five year than five years
years
(Rupees in '000)
Lease rentals receivable 1,494,858 1,495,106 853.040 3,843,004 1,521,860 1,436,815 1,133,794
Residual value 12.535 340.969 28.726 382.230 20.428 103.490 23.039

Minimum lease payments 1,507,393 1,836,075 881.766 4,225,234 1,542,288 1,540,305 1,156,833
Financial charges for future periods (5.382) (291.213) (397.000) (693.595) (3.770) (255.311) (418.859)
Present value of minimum lease payments 1,502,011 1,544,862 484.766 3,531,639 1,538,518 1,284,994 737.974
2021 2020
(Rupees in '000)
11.2 Particulars of advances (Gross)

635,573,871 513,550,202
Total
2021 2020
494,693,751
18,856,451
513,550,202
(45,142,956
)
(5,465,459)
(50,608,415
)
462,941,787
4,092,469
146.957
4,239,426
(677.940)
3,561,486
469,211,685
44,338,517
513,550,202
11.3 Advances include Rs. 50,490.805 million (2020: Rs. 51,189.047 million ) which have been placed
under the non-performing status as detailed below:
2021 2020
Non performing Provision Non performing Provision
Note loans loans
(Rupees in '000)
Category of Classification Domestic
Other Assets Especially
Mentioned 11.3.1 49.319 1.340 43.508

Substandard 264.462 65.075 211.900
Doubtful 118.054 59.027 264.759
Loss 40,666,099 40,203,253 42,224,438 41,485,949
41,097,934 40,328,695 42,744,605 41,672,468
Overseas
Not past due but impaired Overdue by: – – – –

Upto 90 days 38,999 14,993 5,321 4,913
91 to 180 days 12.212 5.750 2.020

181 to 365 days 109.551 54.776 19.961
>365 days 9,232,109 3,752,257 8,417,140 3,455,089
9,392,871 3,827,776 8,444,442 3,470,488
Total 50,490,805 44,156,471 51,189,047 45,142,956
11.3.1 This represents non-performing portfolio of agricultural and small enterprise financing classified as OAEM as per the
requirements of the Prudential Regulation for Agricultural and Small Enterprise Financing issued by the State Bank of Pakistan.
11.4 Particulars of provision against advances

2021 2020
Note Specific General Total Specific General Total
(Rupees in '000)
Opening balance 45,142,956 5,465,459 50,608,415 41,934,421 1,423,921
Exchange adjustments 319.945 18.623 338.568 50.555 7.065

Charge for the year 2,340,739 179.944 2,520,683 5,703,057 4,097,524
Reversals 11.4.3 & (3,250,860) (3,957,717) (7,208,577) (2,215,829) (63.051)
11.4.4 (910.121) (3,777,773) (4,687,894) 3,487,228 4,034,473
Amounts written off 11.5 (396.309) – (396.309) (329.248) –
Closing balance 44,156,471 1,706,309 45,862,780 45,142,956 5,465,459
11.4.1 Particulars of provision against advances
2021 2020
Specific General Total Specific General Total (Rupees in '000)
In local currency 39,981,173 1,327,163 41,308,336 41,672,468 5,148,833

In foreign currencies 4,175,298 379.146 4,554,444 3,470,488 316.626
44,156,471 1,706,309 45,862,780 45,142,956 5,465,459
been placed
2020
Provision
(Rupees in '000)
1.983
52.156
132.380
41,485,949
41,672,468
–
4,913
505
9.981
3,455,089
3,470,488
45,142,956
classified as OAEM as per the
g issued by the State Bank of Pakistan.
Total
43,358,342
57.620
9,800,581
(2,278,880)
7,521,701
(329.248)
50,608,415
46,821,301
3,787,114
50,608,415
11.4.2 State Bank of Pakistan vide BSD Circular No. 2 dated January 27, 2009, BSD Circular No. 10 dated October 20, 2009, BSD Circular No. 02 of 2
dated June 03, 2010 and BSD Circular No. 1 of 2011 dated October 21, 2011 has allowed benefit of Forced Sale Value (FSV) of Plant & Machinery unde
charge, pledged stock and mortgaged residential, commercial & industrial properties (land and building only) held as collateral against Non
Performing Loans (NPLs) for five years from the date of classification. However, management has not taken the FSV benefit in calculation of specifi
provision.
11.4.3 This includes reversal of provisions and reduction of non-performing loans amounting to Rs. Nil (2020:
Rs. 84 Million) as a result of settlement on debt asset swap arrangement with customers.
11.4.4 General provision of Rs. 4.0 billion was created last year on account of uncertainty emanating from COVID-19 outbreak, as many of Bank’s
borrowers had availed the SBP relief program relating to deferment/restructuring & rescheduling. During the current year, as part of the contin
credit assessment process, the Bank has created specific provision against exposures that reflected signs of financial distress. However, the Bank has reve
the general provision as the systematic risks surrounding the economic recovery have receded.
The Bank maintains general reserve in accordance with the applicable requirements of the Prudential Regulations for Consumer Financing a
Prudential Regulations for Small and Medium Enterprise Financing issued by the SBP. General provisions pertaining to overseas adv
are made in accordance with the requirements of the regulatory authorities of the respective countries in which the overseas branches operate
addition, the Bank also maintains a general provision against gross advances on a prudent basis.
2021 2020
11.5 PARTICULARS OF WRITE OFFs:
11.5.1 Against Provisions 11.4 396.309

396.309
11.5.2 Write Offs of Rs. 500,000 and above

- Domestic 11.6 384.417
- Overseas 11.6 10.108
Write Offs of below Rs. 500,000 1.784
11.4 396.309
11.6 DETAILS OF LOAN WRITE OFF 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 Rupees five hundred thousand or above allowed to a person(s) during the year ended December 31, 2021 is given at
Annexure I of the unconsolidated financial statements. However, this write off does not affect the Bank’s right to recover the debts from these
customers.
2021 2020
12. FIXED ASSETS
Capital work-in-progress 12.1 857.736

Property and equipment 12.2 50,723,894
Right-of-use assets 12.3 5,746,241
57,327,871
12.1 Capital work-in-progress
Civil works 431.382
Equipment 1.922
Advances to suppliers 417.309
Others 7.123
857.736
0 dated October 20, 2009, BSD Circular No. 02 of 2010
rced Sale Value (FSV) of Plant & Machinery under
building only) held as collateral against Non
not taken the FSV benefit in calculation of specific
Nil (2020:
g from COVID-19 outbreak, as many of Bank’s

. During the current year, as part of the continuous
s of financial distress. However, the Bank has reversed
rudential Regulations for Consumer Financing and

P. General provisions pertaining to overseas advances
e countries in which the overseas branches operate. In
asis.
00)
329.248
329.248
299.535
–
29.713
329.248
ment in respect of written-off loans or any other

ear ended December 31, 2021 is given at
he Bank’s right to recover the debts from these
000)
802.966
50,467,607
6,757,331
58,027,904
418.187
98.383
283.029
3.367
802.966
12.2 Property and Equipment
2021
Freehold Leasehold Building on Building on Furniture Electrical, Vehicles Leasehold

land land Freehold Leasehold and fixtures office and improvements Total land
computer equipment
(Rupees in '000)
At January 1, 2021
Cost / Revalued amount 26,313,272 2,900,078 14,770,261 806.387 2,052,270 15,340,049 1,012,162 1,217,035 64,411,514
Accumulated depreciation – – (485.921) (28.590) (1,231,404) (11,167,356 (621.368) (409.268) (13,943,907
) )
Net book value 26,313,272 2,900,078 14,284,340 777.797 820.866 4,172,693 390.794 807.767 50,467,607
Year ended December 31, 2021
Opening net book value 26,313,272 2,900,078 14,284,340 777.797 820.866 4,172,693 390.794 807.767 50,467,607
Additions 183.549 2.310 681.408 26.474 159.332 1,243,228 170.782 242.458 2,709,541
Disposals (148.859) – (115.378) – (4.571) (10.777) (12.732) – (292.317)
Depreciation charge – – (523.558) (36.178) (149.236) (1,216,516) (100.718) (150.188) (2,176,394)
Exchange rate adjustments – – 1.737 2.173 2.337 3.317 1.580 4.313 15.457
Transfers – – – – – – – – –
Closing net book value 26,347,962 2,902,388 14,328,549 770.266 828.728 4,191,945 449.706 904.350 50,723,894
At December 31, 2021
Cost / Revalued amount 26,347,962 2,902,388 15,331,276 835.142 2,148,120 16,173,830 1,123,000 1,470,318 66,332,036
Accumulated depreciation – – (1,002,727) (64.876) (1,319,392) (11,981,885 (673.294) (565.968) (15,608,142
) )
Net book value 26,347,962 2,902,388 14,328,549 770.266 828.728 4,191,945 449.706 904.350 50,723,894
– – 2.50%– 2.50%– 10% 10%–25% 20% Lease term –
Rate of depreciation / estimated useful life 5.0% 5.0%
2020
Freehold Leasehold Building Building Furniture Electrical, Vehicles Leasehold
land land on on and fixtures office and improveme
Freehold Leasehold computer equipment nts
land land
(Rupees in '000)
At January 1, 2020
Cost / Revalued amount 26,123,665 2,893,079 13,898,388 637.102 1,860,523 14,508,613 854.594
1,070,928
Accumulated depreciation – – – – (1,107,450) (10,205,701) (308.832)
(603,975)
Net book value 26,123,665 2,893,079 13,898,388 637.102 753.073 4,302,912 466.953 545.762
Opening net book value 26,123,665 2,893,079 13,898,388 637.102 753.073 4,302,912 466.953 545.762
Additions 189.607 6.999 975.707 168.601 209.610 985.975 56.916 370.722
Disposal – – (85.546) – (488) (4.336) (23.938) –
Depreciation charge – – (487.380) (28.597) (141.646) (1,112,379) (109.472) (125.587)
Exchange rate adjustments – – 413 691 256 582 335 (372)
Transfers – – (17.242) – 61 (61) – 17.242
Closing net book value 26,313,272 2,900,078 14,284,340 777.797 820.866 4,172,693 390.794 807.767
Cost / Revalued amount 26,313,272 2,900,078 14,770,261 806.387 2,052,270 15,340,049 1,012,162 1,217,035
Accumulated depreciation – – (485.921) (28.590) (1,231,404) (11,167,356 (621.368) (409.268)
)
Net book value 26,313,272 2,900,078 14,284,340 777.797 820.866 4,172,693 390.794 807.767
Rate of depreciation /
estimated useful life – – 2.50%–5.0% 2.50%– 10% 10%–25% 20% Lease term
5.0%
al, Vehicles Leasehold
improvements Total land land
64,411,514
(13,943,907
)
50,467,607
50,467,607
2,709,541
(292.317)
(2,176,394)
15.457
–
50,723,894
66,332,036
(15,608,142
)
50,723,894
–
Total
61,846,892
(12,225,958)
49,620,934
49,620,934
2,964,137
(114.308)
(2,005,061)
1.905
–
50,467,607
64,411,514
(13,943,907)
50,467,607
–
12.2.1 Leasehold land include a plot of land measuring 3,120.46 square yards having book value of Rs. 1,426.809 million situated at Railway
Quarters, I.I. Chundrigar Road, Karachi, (the “Plot”), where a tenant is claiming for the possession of an insignificant area of only 18 square feet
plot, however there is no dispute over the title of the subject property that would impact the right of the Bank. Both the Constitutional Petitions fi
the Bank have been dismissed by the Sindh High Court on 28 January 2016 against the Bank. The Bank has filed an appeal before the Supreme C
of Pakistan.
12.2.2 The land and buildings of the Bank were revalued as at December 31, 2019 by independent valuers (K.G. Traders (Pvt) Limited, Tristar
International Consultant (Pvt) Limited & Sardar Enterprises), valuation and engineering consultants, on the basis of market value. The total surpl
against revaluation of fixed assets as at December 31, 2021 amounts to Rs. 19,947.432 million (2020: Rs. 20,211.952 million).
12.2.3 Had the land and buildings not been revalued, the total carrying amounts of revalued properties as at
the reporting dates would have been as follows:
2021 2020
(Rupees in '000)
Land 12,806,111
Buildings 11,595,622
12.2.4 The gross carrying amount (cost) of fully depreciated assets that are still in use are as follows:
2021 2020
(Rupees in '000)
Furniture and fixtures 642.688

Electrical, computers and office equipment 7,952,157
Vehicles 442.647
12.2.5 Carrying amount of temporarily idle property of the Bank is Rs. 44.479 million (2020: Rs. 436.136
million)
12.2.6 The information relating to disposal of operating fixed assets to related parties is given in Annexure II
of these unconsolidated financial statements.
2021 2020
12.3 Movement in right-of-use assets is as follows:
Opening balance Additions / adjustments Derecognition 6,757,331
Depreciation charge 31
Closing Net Book Value
13. INTANGIBLE ASSETS 405.848
Capital work-in-progress (214.964)
Computer software 13.1
(1,201,974)
5,746,241
429.453
549.332
978.785
e of Rs. 1,426.809 million situated at Railway
n of an insignificant area of only 18 square feet of the
of the Bank. Both the Constitutional Petitions filed by
e Bank has filed an appeal before the Supreme Court
ent valuers (K.G. Traders (Pvt) Limited, Tristar

nts, on the basis of market value. The total surplus
020: Rs. 20,211.952 million).
perties as at
12,676,870
11,386,665
till in use are as follows:
604.447
7,251,702
474.229
s. 436.136
n Annexure II
000)
7,674,745
734.068
(434.698)
(1,216,784)
6,757,331
394.643
543.815
938.458
2021 2020
(Rupees in '000)
Computer software
13.1 At January 01
Cost 4,185,598
Accumulated amortisation and impairment Net Book Value (3,641,783)
Year ended December 31
Opening net book value Additions 543.815
Amortisation charge Exchange rate adjustments
Closing Net Book Value
At December 31
Cost 543,815
Accumulated amortisation and impairment Net Book Value 321,869
Rate of amortisation (percentage) (316,984)
Useful life 632
549.332
4,513,840
(3,964,508)
549.332
14% to 33.33%
3 - 7 years
13.2 The gross carrying amount (cost) of fully amortised intangible assets that are still in use is Rs. 3,257.802
million (2020: Rs. 3,085.368 million).
2021 2020
14. OTHER ASSETS 21,654,370
Income/ mark-up accrued in local currency Income/ mark-up accrued in foreign currencies Advances, 304,911
deposits, advance rent and 1,897,020
other prepayments 133,809
Compensation for delayed income tax refunds 2,170,938
Non-banking assets acquired in satisfaction of claims 14.1 –
Branch adjustment account 4,319,018
Mark to market gain on forward foreign exchange contracts 304,893
Unrealized gain on derivative financial instruments 25 20,941,457
Acceptances 20 3,218,426
Receivable from the pension fund 38.4 4,794,316
Clearing and settlement accounts 1,117,067
Claims receivable against fraud and forgeries Others 2,104,292
Less: Provision held against other assets 14.2
Other Assets (net of provision)
Surplus on revaluation of non-banking assets acquired in satisfaction of claims
Other Assets - total
14.1 Market value of Non-banking assets acquired in satisfaction of claims
62,960,517
2,709,281
60,251,236
703,370
60,954,606
2,785,535
Non-banking assets acquired in satisfaction of claims of the Bank are revalued as at December 31, 2021
by independent valuers (Material Design Services and J&M Associates) on the basis of market value.
3,963,740
(3,322,930)
640,810
640,810
220,979
(318,024)
50
543,815
4,185,598
(3,641,783)
543,815
14% to 33.33%
3 - 7 years
still in use is Rs. 3,257.802
upees in '000)
17,085,615
305,759
2,249,497
133,809
3,277,778
276,102
4,854,527
517,033
20,030,754
3,370,179
2,698,271
1,087,306
2,176,078
58,062,708
2,582,686
55,480,022
854,231
56,334,253
4,036,914
at December 31, 2021
asis of market value.
2021 2020
14.1.1 Non-banking assets acquired in satisfaction of claims
Opening balance Additions Revaluation Disposals
Depreciation 31
(Charge) / reversal of impairment Closing balance 4,036,914
14.1.2 Gain on disposal of non-banking assets acquired in satisfaction of claims – 259,321
Disposal proceeds Less (1,481,479)
- Revalued amounts (35,544)
- Accumulated depreciation 6,323
Gain 30
2,785,535
2,052,928
1,493,844
(12,365)
1,481,479
571.449
2021 2020
14.2 Provision held against other assets
Non banking assets acquired in satisfaction of claims
Claims receivable against fraud and forgeries Others
14.2.1 Movement in provision held against other assets 88,773
Opening balance 486,976
Charge for the year Reversals 2,133,532
33
Amount written off
Exchange and other adjustments
Closing balance 2,709,281
2,582,686
56,128
(25,036)
31,092
(991)
96,494
2,709,281
15. CONTINGENT ASSETS

There were no contingent assets of the Bank as at December 31, 2021 (2020: Nil).
00)
3,838,230
84,000
183,915
(35,024)
(30,049)
(4,158)
4,036,914
39,000
35,820
(796)
35,024
3,976
00)
95,095
478,773
2,008,818
2,582,686
2,604,137
54,269
(77,917)
(23,648)
(16,591)
18,788
2,582,686
2021 2020
16. BILLS PAYABLE
In Pakistan 24,541,023
Outside Pakistan 48.621
24,589,644
17. BORROWINGS
Secured
Borrowings from State Bank of Pakistan
Under Export Refinance Scheme 17.1 44,958,974
Under Long Term Financing Facility 17.2 22,532,703
Under Renewable Energy Performance Platform 17.3 1,443,069
Under Refinance Scheme for Payment of Wages & Salaries 17.4 5,683,739
Under Temporary Economic Refinance Facility 17.5 24,881,195
Under Refinance Facility for combating COVID-19 17.6 18.357
Under Financing Facility for Storage of Agricultural Produce 17.7 147.260
99,665,297
Bai Muajjal 17.8 44,809,236
Repurchase agreement borrowings 17.9 116,920,102
Total secured 261,394,635
Unsecured
Borrowings from other financial institution 17.10 41.365
Call borrowings 17.11 6,267,152
Overdrawn nostro accounts 1,660,118
Others 162.286
Total unsecured 8,130,921
17.12 269,525,556
17.1 The Bank has entered into agreements for financing with the State Bank of Pakistan (SBP) for extending export finance to
customers. As per the agreements, the Bank has granted SBP the right to recover the outstanding amount from the Bank at the date of maturity
finance by directly debiting the current account maintained by the Bank with SBP. These borrowings are repayable within six months from the
date. These carry mark up rates ranging from 1.0% to 2.0% per annum (2020: 1.0% to 2.0% per annum)
17.2 These borrowings have been obtained from the SBP for providing financing facilities to exporters for adoption of new technologies a
modernization of their plant and machinery. As per the agreements, the Bank has granted SBP the right to recover the outstanding amount from
Bank at the date of maturity of the finance by directly debiting the current account maintained by the Bank with SBP. These borrowings are
repayable within a period ranging from 3 years to 10 years. These carry mark up rates ranging from 2.0% to 3.50% per annum (2020: 2.0% to
per annum)
17.3 These borrowings have been obtained from the SBP for providing financing facilities to customers against renewable energy projec
per the agreements, the Bank has granted SBP the right to recover the outstanding amount from the Bank at the date of maturity of the fin
by directly debiting the current account maintained by the Bank with SBP. These borrowings are repayable within a maximum perio
twelve years with two years of maximum grace period from date of disbursement. These carry mark up rate of 2% per annum (2020: 2.0
annum)
17.4 These borrowings have been obtained from the SBP for providing financing facilities to help businesses in payment of wages
salaries to their workers and employees for supporting continued employment. As per the agreements, the Bank has granted SBP the right to re
the outstanding amount from the Bank at the date of maturity of the finance by directly debiting the current account maintained by the Bank w
SBP. These borrowing are repayable in 8 equal quarterly installments beginning from January 2021. These carry mark up rates ranging from 0
2% per annum (2020: 0% to 2.0% per annum)
upees in '000)
23,912,803
67.889
23,980,692
34,998,802
22,150,335
74.760
10,074,011
1,694,659
–
191.254
69,183,821
–
92,225,530
161,409,351
1,712,914
319.669
397.313
162.286
2,592,182
164,001,533
Pakistan (SBP) for extending export finance to

ding amount from the Bank at the date of maturity of the
orrowings are repayable within six months from the deal
per annum)
ies to exporters for adoption of new technologies and

BP the right to recover the outstanding amount from the
ed by the Bank with SBP. These borrowings are
ng from 2.0% to 3.50% per annum (2020: 2.0% to 3.50%
ies to customers against renewable energy projects. As
ount from the Bank at the date of maturity of the finance
rowings are repayable within a maximum period of
ese carry mark up rate of 2% per annum (2020: 2.0% per
facilities to help businesses in payment of wages and

greements, the Bank has granted SBP the right to recover
ting the current account maintained by the Bank with
ry 2021. These carry mark up rates ranging from 0% to
17.5 These borrowings have been obtained from the SBP for providing concessionary refinancing facility to the industry for purchase of new importe
locally manufactured plant & machinery to set up new projects. As per the agreements, the Bank has granted SBP the right to recover the outstanding amo
from the Bank at the date of maturity of the finance by directly debiting the current account maintained by the Bank with SBP. These borrowings are
repayable within a period of ten years including a grace period of upto 2 years. These carry mark up rate of 1% per annum (2020: 1.0% per annum).
17.6 These borrowings have been obtained from the SBP under a scheme to provide combat the emergency refinance facility to hospitals & medic
centre to develop capacity for the treatment of COVID-19 patients. As per the agreements, the Bank has granted SBP the right to recover the
outstanding amount from the Bank at the date of maturity of the finance by directly debiting the current account maintained by the Bank with SBP. These
mark-up at 0% per annum and are due to mature latest by August 2025.
17.7 These borrowings have been obtained from SBP under “Financing Facility for Storage of Agricultural Produce (FFSAP)” to encourage Private S
to establish Silos, Warehouses and Cold Storages. As per the agreements, the Bank has granted SBP the right to recover the outstanding amount from the
at the date of maturity of the finance by directly debiting the current account maintained by the Bank with SBP. These borrowings are repayable within a
ranging from 3 years to 10 years. These carry mark up rates ranging from 2.50% to 3.50% per annum (2020: 2.50% to 3.50% per annum).
17.8 These carry profit rates ranging from 7.30% to 7.35% per annum and are due to mature latest by June
2022. These are secured against government securities of carrying value of Rs. 43,930.974 million.
17.9 These carry mark-up rates ranging from 5.10% to 10.70% per annum (2020: 6.15% to 7.25% per annum) and are secured against government
securities of carrying value of Rs. 116,508.613 million (2020: Rs. 92,279.556 million). These are repayable latest by March 2022.
17.10 These carry mark-up rates of 1% per annum (2020: 1.90% to 4.00% per annum). These are repayable
latest by February 2023.
17.11 These carry mark-up at the rate of 6.00% to 10.70% per annum (2020: 1.15% per annum). These are
repayable by January 2022.
2021 2020
(Rupees in '000)
17.12 Particulars of borrowings with respect to currencies
In local currency 266,453,798

In foreign currencies 3,071,758
269,525,556
facility to the industry for purchase of new imported and
anted SBP the right to recover the outstanding amount
by the Bank with SBP. These borrowings are
p rate of 1% per annum (2020: 1.0% per annum).
mergency refinance facility to hospitals & medical

Bank has granted SBP the right to recover the
t account maintained by the Bank with SBP. These carry
icultural Produce (FFSAP)” to encourage Private Sector

e right to recover the outstanding amount from the Bank
ith SBP. These borrowings are repayable within a period
2020: 2.50% to 3.50% per annum).
by June
per annum) and are secured against government

able latest by March 2022.
re repayable
). These are
161,494,499
2,507,034
164,001,533
18. DEPOSITS AND OTHER ACCOUNTS
2021 2020
In Local In Foreign Total In Local In Foreign Total
currency currencies currency currencies
(Rupees in '000)
Customers
Current deposits 454,999,719 68,396,660 523,396,379 397,258,854 53,823,514

Savings deposits 692,860,151 44,991,159 737,851,310 649,410,009 45,805,328
Term deposits 80,826,341 12,107,066 92,933,407 71,492,234 14,103,734
Others 25,795,729 3,062,911 28,858,640 23,319,545 3,218,232
1,254,481,940 128,557,796 1,383,039,736 1,141,480,642 116,950,808 1,258,431,450
Financial Institutions
Current deposits 9,064,099 1,472,720 10,536,819 10,885,621 659.092

Savings deposits 10,894,817 117.898 11,012,715 14,068,212 115.935
Term deposits 539.968 6,319,339 6,859,307 1,030,968 4,090,613
Others – 402.950 402.950 – 220.413
20,498,884 8,312,907 28,811,791 25,984,801 5,086,053 31,070,854
1,274,980,824 136,870,703 1,411,851,527 1,167,465,443 122,036,861 1,289,502,304

2021 2020
(Rupees in '000)
18.1 Composition of deposits
- Individuals 912,825,109 829,982,651

- Government (Federal and Provincial) 74,581,258 55,860,439
- Public Sector Entities 87,893,826 82,241,309
- Banking Companies 4,958,226 4,909,064
- Non-Banking Financial Institutions 23,853,565 26,161,790
- Private Sector 307,739,543 290,347,051
1,411,851,527 1,289,502,304
18.2 Deposits and other accounts include deposits eligible to be covered under the Deposits Protection
insurance arrangements amounting to Rs 982,896.128 million (2020: Rs 895,879.416 million).
451,082,368
695,215,337
85,595,968
26,537,777
116,950,808 1,258,431,450
11,544,713
14,184,147
5,121,581
220.413
5,086,053 31,070,854
122,036,861 1,289,502,304
829,982,651
55,860,439
82,241,309
4,909,064
26,161,790
290,347,051
1,289,502,304
Protection
19. DEFERRED TAX LIABILITIES 2021
(Rupees in '000)
At January Recognised in Recognised in

Note 01, 2021 P&L A/C OCI
axable TemT porary differences on

- Surplus on revaluation of fixed assets 23.1 1,286,416 (67.190) 147.019
- Surplus on revaluation of
Non-banking assets 23.2 298.982 (159.971) 135.304
- Accelerated tax depreciation 1,850,789 273.663 –
- Receivable from pension fund 1,179,562 386.088 (310.465)
- Business combination 705.218 – –
5,320,967 432.590 (28.142)
Deductible Temporary differences on
- Provision against advances (2,782,530) 816.216 –
- Deficit on revaluation of investments 23 4,436,721 – (7,466,398)
1,654,191 816.216 (7,466,398)
6,975,158 1,248,806 (7,494,540)
2020
At January Recognised in Recognised in
Note 01, 2020 P&L A/C OCI
(Rupees in '000)
Taxable Temporary Differences on
- Surplus on revaluation of fixed assets 23.1 1,346,550 (60,134) –

- Surplus on revaluation of non-banking 237,181 (2,570) 64,371
assets 23.2
- Accelerated tax depreciation 1,754,097 96.692 –

- Receivable from pension fund 1,261,793 119.428 (201.659)
- Business combination 705.218 – –
- Surplus on revaluation of investments 23 2,271,094 – 2,165,627
7,575,933 153.416 2,028,339
Deductible Temporary Differences on
- Provision against advances (1,725,288) (1,057,242) –

5,850,645 (903.826) 2,028,339
2021
ees in '000)
Recognised in At December
OCI 31, 2021
1,366,245
274.315
2,124,452
1,255,185
705.218
5,725,415
(1,966,314)
(3,029,677)
(4,995,991)
729.424
2020
At December
31, 2020
1,286,416
298,982
1,850,789
1,179,562
705.218
4,436,721
9,757,688
(2,782,530)
6,975,158
2021 2020
20. OTHER LIABILITIES
Mark-up/ return/ interest payable in local currency 5,303,967 2,272,650

Mark-up/ return/ interest payable in foreign currencies 171.780 247.926
Unearned commission and income on bills discounted 807.468 212.337
Accrued expenses 6,420,208 5,898,224
Provision for taxation ( provisions less payments) 8,641,789 10,185,375
Workers’ Welfare Fund 20.1 9,878,470 8,838,684
Acceptances 14 20,941,457 20,030,754
Unclaimed/dividend payable 2,022,825 1,692,942
Mark to market loss on forward foreign exchange contracts 4,388,436 4,485,302
Unrealized loss on derivative financial instruments 25 302.365 513.343
Staff welfare fund 4.755 5.598
Branch adjustment account 14 78.348 –
Provision for employees’ compensated absences 38.4 1,100,865 919.407
Provision for post retirement medical benefits 38.4 1,982,169 2,004,122
Provision for employees’ contributory benevolent scheme 38.4 197.712 222.084
Retention money 12.473 20.657
Insurance payable against consumer assets 736.768 698.949
Unclaimed balances 755.141 877.552
Duties and taxes payable 3,868,463 1,846,580
Provision against off-balance sheet obligations 46.319 46.189
Security deposits against lease 799.331 499.089
Lease liability against right of use assets 7,399,921 8,035,048
Clearing and settlement accounts 6,234,150 7,421,975
Others 7,269,709 5,926,041
89,364,889 82,900,828
20.1 Supreme Court of Pakistan vide its order dated November 10, 2016 has held that the amendments made in the law introduced
the Federal Government for the levy of Workers Welfare Fund were not lawful. The Federal Board of Revenue has filed review petitio
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 curren
be treated as conclusive. Accordingly, the Bank maintained its provision in respect of WWF.
21. SHARE CAPITAL

21.1 Authorized Capital
2021 2020 2021 2020
(Number of shares) (Rupees in ‘000)
1,500,000,000 1,500,000,000 Ordinary shares of Rs. 10 each 15,000,000
21.2 Issued, subscribed and paid up

2021 2020 2021 2020
Ordinary shares
197,253,795 197,253,795 Fully paid in cash 1,972,538

915,776,953 915,776,953 Issued as bonus shares 9,157,769
72,029,258 72,029,258 Issued for consideration other than cash 720.293
1,185,060,006 1,185,060,006 11,850,600
es in '000)
2,272,650
247.926
212.337
5,898,224
10,185,375
8,838,684
20,030,754
1,692,942
4,485,302
513.343
5.598
–
919.407
2,004,122
222.084
20.657
698.949
877.552
1,846,580
46.189
499.089
8,035,048
7,421,975
5,926,041
82,900,828
e amendments made in the law introduced by
l Board of Revenue has filed review petitions
view petitions the judgment may not currently

ct of WWF.
15,000,000
2020
upees in ‘000)
1,972,538
9,157,769
720.293
11,850,600
21.3 The movement in the issued, subscribed and paid-up capital during the year is as follows:
2021 2020 2021 2020
1,185,060,006 1,185,060,006 Opening balance at January 01 11,850,600
1,185,060,006 1,185,060,006 Closing balance at December 31 11,850,600

21.4 Number of shares held by the associated undertakings as at December 31, are as follows:
2021 2020
(Number of shares)
Adamjee Insurance Company Limited 55,196,435 47,827,287
Nishat Mills Limited 88,015,291 88,015,291

Siddiqsons Limited 11,271,920 14,276,462
Nishat (Aziz Avenue) Hotels and Properties Limited 434.176 141.950
Nishat Real Estates Development Company (Private) Limited 68.900 54.500
Adamjee Life Assurance Company Limited 1,200,000 –
156,186,722 150,315,490
2021 2020
22. RESERVES
Share premium 23,751,114 23,751,114

Non- distributable capital reserve - gain on
bargain purchase option 22.1 908.317 908.317
Exchange translation reserve 3,701,067 2,876,483
Statutory reserve 22.2 37,641,526 34,560,421
General reserve 18,600,000 18,600,000
84,602,024 80,696,335
22.1 Under IFRS-3 a bargain purchase represents an economic gain which should be immediately recognized by the acquirer as incom
However, the amount of bargain purchase gain was not taken to the profit and loss account as the SBP, through its letter BPRD(R&PD)/2017/143
dated June 13, 2017 recommended that the amount of gain may be routed directly into equity as a Non-distributable Capital Reserve (NCR). The
may become available for distribution through a stock dividend only with prior approval of the SBP. The Bank, before distribution of the gain as
stock dividend, may adjust any subsequent provisions/deficit, assessed by the Bank or recommended by the Banking Inspection Department of SB
in the acquired assets and liabilities of NIB Bank Limited against the NCR.
22.2 Statutory reserve represents amount set aside as per the requirements of section 21 of the Banking
Companies Ordinance, 1962.
11,850,600
11,850,600
1, are as follows:
47,827,287
88,015,291
14,276,462
141.950
54.500
–
150,315,490
23,751,114
908.317
2,876,483
34,560,421
18,600,000
80,696,335
diately recognized by the acquirer as income.
, through its letter BPRD(R&PD)/2017/14330
-distributable Capital Reserve (NCR). The NCR
he Bank, before distribution of the gain as a
y the Banking Inspection Department of SBP,
king
2021 2020
23. SURPLUS ON REVALUATION OF ASSETS
Surplus / (deficit) on revaluation of

- Available for sale securities 10.1 (7,768,402)
- Fixed Assets 23.1 19,947,432
- Non-banking assets acquired in satisfaction of claims 23.2 703.370
12,882,400
Deferred tax on surplus / (deficit) on revaluation of:
- Available for sale securities 19 (3,029,677)
- Fixed Assets 23.1 1,366,245
(1,389,117)
14,271,517
23.1 Surplus on revaluation of fixed assets

Surplus on revaluation of fixed assets as at January 01 20,211,952
Recognised during the year –
Realised on disposal during the year - net of deferred tax (115.263)
Transferred to unappropriated profit in respect of incremental
depreciation charged during the year - net of deferred tax (82.067)
Related deferred tax liability on incremental
depreciation charged during the year (52.471)
Related deferred tax liability on surplus realised on disposal (14.719)
Surplus on revaluation of fixed assets as at December 31 19,947,432
Less: Related deferred tax liability on:
- revaluation as at January 01 1,286,416
- opening liability remeasurement 147.019
- recognised during the year –
- surplus realised on disposal during the year (14.719)
- incremental depreciation charged during the year (52.471)
19 1,366,245
18,581,187
23.2 Surplus on revaluation of non-banking assets acquired

in satisfaction of claims
Surplus on revaluation as at January 01 854.231
Recognised during the year 259.321
Surplus on revaluation as at December 31 703.370
- revaluation as at January 01 298.982
- revaluation recognised during the year 101.135
19 274.315
429.055
Rupees in '000)
12,676,354
20,211,952
854.231
33,742,537
4,436,721
1,286,416
298.982
6,022,119
27,720,418
20,383,765
–
(22.544)
(89.135)
(47.995)
(12.139)
20,211,952
1,346,550
–
–
(12.139)
(47.995)
1,286,416
18,925,536
677.660
183.915
(4.774)
(2.570)
854.231
237.181
64.371
–
(2.570)
298.982
555.249
2021 2020
24. CONTINGENCIES AND COMMITMENTS
- Guarantees 24.1 186,607,084

- Commitments 24.2 406,841,074
- Other contingent liabilities 24.3 25,738,784
619,186,942
24.1 Guarantees:
Financial guarantees 158,802,090

Performance guarantees 25,596,864
Other guarantees 2,208,130
186,607,084
24.2 Commitments:
Documentary credits and short-term

trade-related transactions
- letters of credit 178,952,056
Commitments in respect of:
- forward foreign exchange contracts 24.2.1 217,379,046
- forward government securities transactions 24.2.2 5,098,200
- derivatives (notional) 24.2.3 4,434,780
Commitments for acquisition of:
- operating fixed assets 806.239
- intangible assets 170.753
406,841,074
24.2.1 Commitments in respect of forward

foreign exchange contracts
Purchase 119,831,839
Sale 97,547,207
217,379,046
24.2.2 Commitments in respect of government

securities transactions
Purchase 5,098,200
Sale –
5,098,200
000)
178,571,960
507,506,107
27,960,316
714,038,383
149,925,920
25,900,273
2,745,767
178,571,960
172,617,563
318,420,575
11,089,775
4,471,383
710.570
196.241
507,506,107
168,432,858
149,987,717
318,420,575
11,089,775
–
11,089,775
2021 2020
(Rupees in '000)
24.2.3 Commitments in respect of derivatives
FX options (notional)
Purchase 1,432,779
Sale 1,432,779
2,865,558
Cross Currency Swaps (notional)
Purchase 784.611
Sale 784.611
1,569,222
4,434,780
24.2.4 The Bank makes commitments to extend credit in the normal course of its business but these being revocable commitments do
attract any significant penalty or expense if the facility is unilaterally withdrawn.
2021 2020
24.3 Other contingent liabilities
Claims against the Bank not
acknowledged as debts 24.3.1
25,738,784
24.3.1 These mainly represent counter claims by borrowers for damages and other claims relating to banking transactions. Based on l
advice and / or internal assessments, management is confident that the matters will be decided in the Bank’s favour and the possibility
adverse outcome is remote. Accordingly, no provision has been made in these unconsolidated financial statements.
24.4 For assessment year 1988-89 through tax year 2020, the tax department disputed Bank’s treatment on certain issues, where the
Bank’s appeals are pending at various appellate forums, entailing an additional tax liability of Rs. 1,497 million (2020: Rs. 6,033 millio
Such issues inter alia principally include disallowance of expenses for non deduction of withholding tax and non availability of underly
records, provision for non performing loans, attribution of expenses to heads of income other than income from business and disallowa
credit for taxes paid in advance / deducted at source.
The Bank has filed appeals which are pending at various appellate forums. In addition, certain decisions made in fav
of the Bank are being contested by the department at higher forums. No provision has been made in the financial statements
regarding the aforesaid additional tax demand and already issued favourable decisions where the department is in appeal, as
management is of the view that the issues will be decided in the Bank’s favour as and when these are taken up by the Appell
Authorities.
24.5 Amortisation of goodwill and other intangibles amounting to Rs 28.08 billion of Ex. NIB
Issue of goodwill and other related assets amortization for few years has been assessed in Bank’s favour at appellate forums during the
however, the tax department has filed appeal against these decisions. The management has not recorded any tax benefit because the iss
not attained finality.
182.800
182.800
365.600
1,975,311
2,130,472
4,105,783
4,471,383
iness but these being revocable commitments do not
Rupees in '000)
27,960,316
aims relating to banking transactions. Based on legal
ecided in the Bank’s favour and the possibility of any
lidated financial statements.
ed Bank’s treatment on certain issues, where the

ility of Rs. 1,497 million (2020: Rs. 6,033 million).
withholding tax and non availability of underlying
other than income from business and disallowance of
ums. In addition, certain decisions made in favour

ision has been made in the financial statements
decisions where the department is in appeal, as the
ur as and when these are taken up by the Appellate
of Ex. NIB
in Bank’s favour at appellate forums during the year,
has not recorded any tax benefit because the issue has
25. DERIVATIVE INSTRUMENTS 2021
25.1 Product Analysis Cross Currency Swaps Interest Rate Swaps FX Options
Notional Mark to Notional Mark to Notional Mark to principal market
principal market principal market gain/loss gain/loss
gain/loss
(Rupees in '000)
Counterparties With Banks for
Hedging 784.611 298.956 – – 1,432,779

Market Making – – – – –
With other entities for
Hedging – – – – –
Market Making 784.611 (296.428) – – 1,432,779
Total
Hedging 784.611 298.956 – – 1,432,779
Market Making 784.611 (296.428) – – 1,432,779
2020
Cross Currency Swaps Interest Rate Swaps FX Options
Notional Mark to Notional Mark to Notional Mark to
principal market principal market principal market
gain/loss gain/loss gain/loss
(Rupees in '000)
Counterparties
With Banks for
Hedging Market Making
Total
1,975,311 512.508 – – 182.800 4.525

– – – – – –
– – – – – –
2,130,472 (508.818) – – 182.800 (4.525)
1,975,311 512.508 – – 182.800 4.525
2,130,472 (508.818) – – 182.800 (4.525)
waps FX Options
onal Mark to principal market
gain/loss
5.937
–
–
(5.937)
5.937
(5.937)
25.2 Maturity Analysis
2021
No. of Notional Mark to Market contracts principal Negativ
Positive Net
(Rupees in '000)
Remaining Maturity
Upto 1 month 24 1,183,628 (843) 843 –

1 to 3 months 32 1,483,069 (4.097) 4.097 –
3 to 6 months 8 343.423 (40.122) 40.378 256
6 months to 1 Year 2 330.429 (95.142) 96.369 1.227
2 to 3 Years 2 1,094,231 (162.161) 163.206 1.045
Total 68 4,434,780 (302.365) 304.893 2.528
2020
No. of Notional Mark to Market contracts principal Negativ
Positive Net
(Rupees in '000)
Remaining Maturity
Upto 1 month 8 924.787 (54.638)
1 to 3 months 4 120.859 (1.545)
3 to 6 months 4 421.010 (71.467)
6 months to 1 Year 3 329.626 (23.640)
1 to 2 Years 4 1,094,545 (220.328)
3 to 5 Years 2 1,580,556 (141.725)
Total 25 4,471,383 (513.343)
25.3 Risk management related to derivatives is discussed in note 45.5.
2021 2020
(Rupees in '000)
26. MARK-UP/RETURN/INTEREST EARNED
Loans and advances 33,123,048 42,879,345

Investments 89,523,092 91,983,471
Lendings to financial institutions 566.646 998.236
Balances with banks 121.520 214.653
123,334,306 136,075,705
acts principal Negative
–
–
256
1.227
1.045
2.528
acts principal Negative
54.840 202
1.545 –
71.915 448
18.177 (5.463)
226.567 6.239
143.989 2.264
517.033 3.690
42,879,345
91,983,471
998.236
214.653
136,075,705
2021 2020
27. MARK-UP/RETURN/INTEREST EXPENSED 47,106,616
Deposits Borrowings 9,716,805
Cost of foreign currency swaps against foreign currency deposits / borrowings 1,609,774
Unwinding cost of liability against right-of-use assets 914,209
28. FEE & COMMISSION INCOME
Branch banking customer fees Consumer finance related fees
Card related fees (debit and credit cards) Credit related fees
Investment banking fee Commission on trade Commission on guarantees
Commission on cash management
Commission on remittances including home remittances Commission on utility bills 59,347,404
Commission on Bancassurance Rent on lockers
Commission on investments services Other commission
29. GAIN ON SECURITIES - NET
Realised 29.1 2,849,788
Unrealised - Held For Trading 10.1 511,013
29.1 Realised gain / (loss) on: 2,946,442
Federal Government Securities Subsidiary 262,066
Non Government Debt Securities Shares and units 206,755
30. OTHER INCOME 1,386,348
Rent on property 596,657
Gain on sale of fixed assets - net 724,588
Gain / (loss) on termination of lease liability against right of use assets 987,133
Gain on sale of non banking assets - net 14.1.2 80,763
1,474,872
233,155
42,696
137,403
12,439,679
810,862
(12)
810.850
383,592
– 40
427,230
810.862
90,656
106,456
54,854
571,449
823.415
000)
55,095,363
6,152,383
2,386,644
1,106,824
64,741,214
1,914,132
420,289
3,130,966
47,282
144,137
1,277,171
562,447
614,297
1,010,735
79,791
1,329,986
216,420
30,131
158,541
10,936,325
3,332,256
(224)
3,332,032
3,438,217
72,194
(76,169)
(101,986)
3,332,256
67,310
72,601
(15,637)
3,976
128,250
2021 2020
31. OPERATING EXPENSES
Total compensation expense 31.1 16,939,722

Property expense
Rent and taxes 193.157
Insurance 21.091
Utilities cost 1,567,229
Fuel expense generators 413.518
Security (including guards) 1,505,660
Repair and maintenance (including janitorial charges) 716.289
Depreciation on right-of-use assets 12.3 1,201,974
Depreciation 12.2 709.924
6,328,842
Information technology expenses
Software maintenance 1,096,825
Hardware maintenance 184.802
Amortisation 13.1 316.984
Network charges 518.317
Insurance 3.425
2,739,682
Directors’ fees and allowances 40.2 46.300
Legal and professional charges 267.642
Outsourced services costs 37.1 766.445
Travelling and conveyance 271.750
NIFT clearing charges 154.329
Depreciation on non-banking assets acquired
in satisfaction of claims 14.1.1 35.544
Training and development 35.410
Postage and courier charges 235.818
Communication 364.519
Stationery and printing 586.848
Marketing, advertisement & publicity 778.223
Donations 31.2 8.165
Auditors’ remuneration 31.3 56.724
Cash transportation charges 860.210
Repair and maintenance 445.056
Subscription 12.994
Entertainment 203.250
Remittance charges 209.080
Brokerage expenses 36.364
Card related expenses 992.445
CNIC verification charges 262.250
Insurance 1,667,611
Others 228.190
9,372,308
35,380,554
Total cost for the year included in other operating expenses relating to outsourced activities is Rs 196.446 million (2020: Rs
275.517 million) which pertains to payments made to “Euronet Pakistan Private Limited” (a related party) incorporated in Pakistan. Th
includes payments other than outsourced services costs, which are disclosed above. Outsourcing shall have the same meaning as specif
BPRD Circular No. 06 of 2019.
0
Rupees in '000)
15,805,510
160.642
23.197
1,218,168
334.634
1,240,298
653.082
1,216,784
641.564
5,488,369
1,148,436
212.381
547.930
318.024
598.380
3.850
2,829,001
50.060
268.451
691.787
260.676
166.175
815.567
30.049
36.791
233.891
326.441
563.090
695.291
112.596
29.720
709.262
401.826
20.637
183.703
211.631
36.124
829.055
128.614
1,483,323
238.142
8,522,902
32,645,782
ed activities is Rs 196.446 million (2020: Rs
d” (a related party) incorporated in Pakistan. This
tsourcing shall have the same meaning as specified in
2021 2020
31.1 Total compensation expense
Fees and allowances 543.744

Managerial remuneration
i) Fixed 12,260,442
ii) Variable - cash bonus / awards 2,206,042
Charge for defined benefit plan 289.144
Contribution to defined contribution plan 430.857
Commission 531.311
Staff group insurance 384.854
Rent and house maintenance 61.448
Medical 37.001
Conveyance 81.878
16,826,721
Sign-on bonus 31.1.1 2.501
Severance allowance 31.1.2 110.500
16,939,722
31.1.1 During the year sign on bonus was paid to 5 employees (2020: 4).
31.1.2 Severance allowance pertains to 6 employees (2020: 1).
31.2 Detail of donations made during the year is as follows:
2021 2020
(Rupees in '000)

8.165
31.2.1 None of the directors, executives and their spouses had any interest in the donees to whom donations
were given during the year.
2021 2020
(Rupees in '000)
31.3 Auditors’ remuneration
Audit fee 16.500

Fee for audit of foreign branches 11.514
Special certifications and sundry advisory services –
Tax services 26.235
Sales tax on audit fee 825
Out-of-pocket expenses 1.650
56.724
000)
470.085
11,514,132
2,430,988
74.827
394.598
348.633
386.388
58.094
35.135
88.130
15,801,010
3.700
800
15,805,510
lows:
–
95.000
9.996
5.000
–
–
2.600
112.596
m donations
16.500
10.272
473
–
825
1.650
29.720
2021 2020
32. OTHER CHARGES
Penalties of State Bank of Pakistan 399.873

VAT & National Building tax & Crop Insurance Levy 49.907
Education cess 23.936
473.716
33. PROVISIONS / (REVERSALS) & WRITE OFFS - NET

Provisions / (reversals) against balance with Banks 6.600
Provisions / (reversals) for diminution in value
of investments 10.3.1 6.885
(Reversals) / provisions against loans & advances 11.4 (4,687,894)
(Reversals) against off balance sheet items (2.643)
Provisions / (reversals) against other assets 14.2.1 31.092
Recovery of written off / charged off bad debts (176.768)
(4,822,728)
34. TAXATION
Current 19,929,457
Prior years -
Deferred 19 1,248,806
21,178,263
34.1 Relationship between tax expense

and accounting profit
Accounting profit for the year 51,989,310
Tax rate 39%
Tax on income 20,275,831

Tax effect of permanent differences 155.950
Others 746.482
Tax charge for the year 21,178,263
(Rupees in '000)
35. BASIC AND DILUTED EARNINGS PER SHARE
Profit for the year after tax
30,811,047
(Number)
Weighted average number of ordinary shares 1,185,060,006
(Rupees)
Basic and diluted Earnings Per Share 26.00
Diluted Earnings Per Share has not been presented separately as the Bank does not have any convertible
instruments in issue at the reporting dates.
Rupees in '000)
191.766
92.502
13.129
297.397
(3.569)
(49.922)
7,521,701
(448)
(23.648)
(130.948)
7,313,166
20,115,480
-
(903.826)
19,211,654
48,248,955
39%
18,817,092
74.789
319.773
19,211,654
(Rupees in '000)
29,037,301
(Number)
1,185,060,006
(Rupees)
24.50
not have any convertible

2021 2020
Note
36 CASH AND CASH EQUIVALENTS
Cash and balances with treasury banks

Balances with other banks
Overdrawn nostro accounts
36.1 Reconciliation of movement of liabilities to cash flows arising from financing activities
2021
Liabilities Equity
Sub-ordinated Other Share Reserves Unappropriated Total Sub-ordinated Other Share Reserves Unappropriated Total
loan liabilities capital profit loan liabilities capital profit
(Rupees in '000)
Opening Balance – 82,900,828 11,850,600 80,696,335 69,834,602 245,282,365

Changes from Financing cash flows
Redemption of Subordinated loan – – – – – –

Payment of lease liability against
right–of–use–assets – (1,685,366) – – – (1,685,366)
Dividend paid – – – – (34,036,857) (34,036,857)
Total changes from financing cash flows – (1,685,366) – – (34,036,857) (35,722,223)
Liability related
Changes in Other liabilities

– Cash based – 5,978,935 – – – 5,978,935
– Dividend payable – 329.883 – – (329.883) –
– Non cash based – 1,840,609 – – – 1,840,609
Total liability related other changes – 8,149,427 – – (329.883) 7,819,544
Total equity related other changes – – – 3,905,689 28,215,405 32,121,094
Closing Balance – 89,364,889 11,850,600 84,602,024 63,683,267 249,500,780
2021 2020
7
8
17
2020
Liabilities
erves Unappropriated Total
profit
s in '000)
– 94,295,738 11,850,600 77,591,253 55,777,489 239,515,080
– – – – – –
– (1,682,647) – – – (1,682,647)
– – – – (11,750,637) (11,750,637)
– (1,682,647) – – (11,750,637) (13,433,284)
– (18,498,355) – – – (18,498,355)
– 99.963 – – (99.963) –
– 8,686,129 – – – 8,686,129
– (9,712,263) – – (99.963) (9,812,226)
– – – 3,105,082 25,907,713 29,012,795
– 82,900,828 11,850,600 80,696,335 69,834,602 245,282,365
164,613,179 122,180,839
18,830,310 24,030,328
(1,660,118) (397,313)
181,783,371 145,813,854
2020
Equity
2021 2020
(Number)
37. STAFF STRENGTH
Permanent 13.737 13.536

On Bank contract 112 107
Bank’s own staff strength at end of the year 13.849 13.643
37.1 In addition to the above, 87 (2020: 118) employees of outsourcing services companies were assigned to the Bank as at the end
the year to perform services other than guarding, tea and janitorial services. Outsourced staff includes 80 (2020: 111) working domesti
and 7 (2020: 7) working abroad.
38. DEFINED BENEFIT PLAN

38.1 General description
The Bank operates the following retirement benefits for its employees:
- Pension fund - funded
- Benevolent scheme - unfunded
- Post retirement medical benefits - unfunded
- Employees compensated absence - unfunded
The plan assets and defined benefit obligations are based in Pakistan.
38.2 Number of Employees under the scheme
The number of employees covered under the following defined benefit schemes are:
2021
(Number)
- Pension fund - funded 5.731

- Benevolent scheme - unfunded 1.002
- Post retirement medical benefits - unfunded 13.612
- Employees compensated absence - unfunded 13.612
38.3 Principal actuarial assumptions
The latest actuarial valuations of the pension fund, employees’ contributory benevolent scheme, post retirement medical benefits and
employee’s compensated absences were carried out at December 31, 2021. The principal actuarial assumptions used are as follows:
Approved Employees' Post retirement Employees'

Pension contributory medical compensated
fund benevolent scheme benefits absences
2021 2020 2021 2020 2021 2020 2021 2020
(%)
Discount rate 11.75 9.75 11.75 9.75 11.75 9.75 11.75
Expected rate of return on plan assets 11.75 9.75 – – – – –

Expected rate of salary increase 9.75 7.75 9.75 7.75 – – 9.75
Expected rate of increase in pension 0-5 0-5 – – – – –
Expected rate of increase in
medical benefit – – – – 9.75 7.75 –
13.536
107
13.643
re assigned to the Bank as at the end of
des 80 (2020: 111) working domestically
it schemes are:
2021 2020
(Number)
5.731 5.410
1.002 1.108
13.612 13.386
13.612 13.386
st retirement medical benefits and

assumptions used are as follows:
9.75
–
7.75
–
–
38.4 Reconciliation of (receivable from) / payable to defined benefit plans
Approved Employees' Post retirement
Pension contributory medical
fund benevolent scheme benefits absences 2021 2020 2021 2
2021 2020 2021 2020
Present value of obligations 38.5 5,031,961 5,097,744 197.712 222.084 1,982,169 2,004,122 1,100,865 919.407
Fair value of plan assets 38.6 (8,250,387) (8,467,923) – – – – – –

(Receivable) / payable 38.7 (3,218,426) (3,370,179) 197.712 222.084 1,982,169 2,004,122 1,100,865 919.407
38.5 Movement in defined benefit obligations

fund benevolent scheme benefits
2021 2020 2021 2020 2021 2020 2021 2020
Obligations at the beginning
of the year 5,097,744 5,182,991 222.084 221.193 2,004,122 1,921,348 919.407 939.495
Current service cost 38.8.1 62.653 64.350 21.449 21.742 61.978 53.018 24.653 24.428
Interest cost 477.989 560.303 20.249 22.931 188.540 208.381 85.558 98.224
Benefits paid (390.586) (405.032) (28.812) (34.721) (140.756) (138.149) (83.768) (132.782)
Re–measurement loss / (gain) 38.8.1 & (215.839) (304.868) (37.258) (9.061) (131.715) (40.476) 155.015 (9.958)
38.8.2
Obligations at end of the year 38.4 5,031,961 5,097,744 197.712 222.084 1,982,169 2,004,122 1,100,865 919.407
38.6 Movement in fair value of plan assets

Pension contributory medical compensated fund benevolent scheme benefits absences
2021 2020 2021 2020 2021 2020 2021 2020
Fair value at the beginning of the year Interest 8,467,92 8,788,112 – – – – – –

income on plan assets Benefits paid 3 965,880 – – – – – –
Re–measurement loss 38.8.2 806,581 (405,032) – – – – – –
Fair value at end of the year 38.4 (390,586 (881,037) – – – – – –
)
(633,531
)
8,250,38 8,467,923 – – – – – –
7
38.7 Movement in (receivable) / payable under defined benefit schemes
2021 2020 2021 2020 2021 2020 2021 2020
Opening balance (3,370,179) (3,605,121) 222.084 221.193 2,004,122 1,921,348 919.407 939.495
Charge / (reversal) for the year 38.8.1 (265.939) (341.227) 39.339 41.961 250.518 261.399 265.226 112.694
Employees’ contribution – – 2.359 2.712 – – – –
Re–measurement loss / (gain)
recognised in OCI
during the year 38.8.2 417.692 576.169 (37.258) (9.061) (131.715) (40.476) – –
Benefits paid by the Bank – – (28.812) (34.721) (140.756) (138.149) (83.768) (132.782)
Closing balance 38.4 (3,218,426) (3,370,179) 197.712 222.084 1,982,169 2,004,122 1,100,865 919.407
Employees'
compensated
2021 2020 2021 2020
919.407
–
919.407
Employees'
compensated
absences
939.495
24.428
98.224
(132.782)
(9.958)
919.407
nefits absences
–
–
–
–
Employees'
compensated
absences
939.495
112.694
–
–
(132.782)
919.407
38.8 Charge for defined benefit plans
38.8.1 Cost recognised in profit and loss
Approved Employees'
Pension contributory
fund benevolent scheme
2021 2020 2021 2020 2021 2020 2021 2020
Current service cost 38.5 62,653 64,350 21,449 21,742 61,978 53,018 24,653
Net interest on defined benefit asset / liability (328,592) (405,577) 20,249 22,931 188,540 208,381 85,558
Employees’ contribution – – (2,359) (2,712) – – – 155,015
Actuarial (gain) 38.5 – – – – – –
38.7
(265.939) (341.227) 39.339 41.961 250.518 261.399 265.226
38.8.2 Re–measurements recognised in OCI during the year

Approved Employees'
Pension contributory
fund benevolent scheme
2021 2020 2021 2020 2021 2020 2021 2020
Loss / (gain) on obligation –
Financial assumptions 38.5
Experience adjustments Actual return on plan (542,09
assets (389,052) (18,272) (17,065) (100,133) 107,752 –
7)
over expected interest income 38.6 (693,920) (18,986) (26,126) (31,582) (148,228) –
326,258
Re–measurement loss / (gain) 881,037 – – – – –
633,531
recognised in OCI 38.7
417.692 576.169 (37.258) (9.061) (131.715) (40.476) –
38.9 Components of plan assets

2021 2020 2021 2020 2021 2020 2021 2020

Cash and cash equivalents – net Shares 133,780 24,451 – – – – –
Open ended mutual funds units 7,929,45 8,129,575 – – – – –
38.4 3 313,897 – – – – –
187,154
8,250,38 8,467,923 – – – – –
7
38.9.1 Significant risk associated with the plan assets
The Fund’s investments in equity securities and units of mutual funds are subject to price risk. These risks are regularly monitored by
Trustees of the employee funds.
Post retirement Employees'
medical compensated
benefits absences
2020
24,428
98,224
– (9,958)
112.694

medical compensated
benefits absences
2020
–
–
–
e benefits absences
–
–
–
se risks are regularly monitored by

38.10 Sensitivity analysis
Sensitivity analysis has been performed by varying one assumption keeping all other assumptions constant and calculating the impact on the pres
value of the defined benefit obligations under the various employee benefit schemes. The increase / (decrease) in the present value of defined ben
obligations as a result of change in each assumption is summarized below:
Approved Employees' Post Employees'

Pension fund contributory retirement compensated
benevolent medical benefits absences
scheme
(Rupees in '000)
(297,730) (12.761) (213.180) (67.315)
335,100 14.323 263.538 75.043

76,700 – – 75.809
(72,190) – – (69.073)
191,850 – – –
(291,090) – – –
– – 145.346 –
– – (124.096) –
1% increase in discount rate 1% decrease in discount rate

1 % increase in expected rate of salary increase
1 % decrease in expected rate of salary increase
1% increase in expected rate of pension increase
1% decrease in expected rate of pension increase
1% increase in expected rate of medical benefit increase
1% decrease in expected rate of medical benefit increase
38.11 Expected contributions to be paid to the funds in the next financial year
No contributions are being made to pension fund due to surplus of fair value of plan’s assets over present value of defined obligation. No contribu
to the pension fund is expected in the next year.
38.12 Expected charge / (reversal) for the next financial year

Based on actuarial advice, management estimates that the charge / (reversal) in respect of defined benefit plans for the year ending December 31,
would be as follows:
Approved Employees' Post

Pension fund contributory retirement
benevolent scheme medical benefits
(Rupees in '000)
Expected charge / (reversal) for
the next financial year (312.272) 35.998 294.973

38.13 Maturity profile
The weighted average duration of the obligation

(in years) 7.69 7.69 7.69
38.14 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.
ant and calculating the impact on the present
crease) in the present value of defined benefit
nt value of defined obligation. No contribution
it plans for the year ending December 31, 2022
Employees'
compensated
absences
es in '000)
162.927
7.69
covered by the Fund on any valuation date

ture contributions to the fund, projected
38.15 The defined benefit plans may expose the bank to actuarial risks such as longevity risk, investment
risk, salary increase risk and withdrawal rate risk as described below;
Investment risk The risk arises when the actual performance of the investments is lower than expectation and
thus creating a shortfall in the funding objectives.
Longevity risk The risk arises when the actual lifetime of retirees is longer than expectation. This risk is
measured at the plan level over the entire retiree population.
Salary increase risk The most common type of retirement benefit is one where the benefit is linked with final salary.
The risk arises when the actual increases are higher than expectation and impacts the liability
accordingly.
Withdrawal rate The risk of actual withdrawals varying with the actuarial assumptions can impose a risk to the
benefit obligation. The movement of the liability can go either way.
39. DEFINED CONTRIBUTION PLAN

The Bank operates an approved contributory provident fund for 11,570 (2020: 11,458) employees where contributions are made by the B
at 8.33% (2020: 8.33%) and employees ranging from 8.33% to 15% per annum (2020: 8.33% to 15% per annum) of the basic salary.
The Bank also operates an approved non-contributory provident fund for 637 (2020: 687) employees who have opted for the new schem
where contributions are made by the employees ranging from 8.33% to 15% per annum (2020: 8.33% to 15% per annum) of the basic
salary.
40. COMPENSATION OF DIRECTORS AND KEY MANAGEMENT PERSONNEL
40.1. Total compensation expense
20
Directors
Chairman Executive Non
Note (other than executive
CEO)
(Rupees in '000)
Fee and allowances 40.2 5.500 – 40,800
Managerial Remuneration
i) Fixed – – –
ii) Cash Bonus / Awards 40.1.1 – – –
Contribution to defined
contribution plan – – –
Rent & house maintenance – – –
Medical – – –
Severance allowance – – –
Overseas allowance – – –
Security – – –
Commission – – –
Club membership – – –
Total 5.500 – 40,800
Number of Persons 1 – 11
*Mr. Imran Maqbool completed his term as President & CEO on December 20, 2021 and Mr. Shoaib Mumtaz– Group Head CFIBG ha
taken charge as Acting President & CEO of the Bank effective from December 21, 2021.
isk, investment
ees where contributions are made by the Bank

er annum) of the basic salary.
mployees who have opted for the new scheme,

0: 8.33% to 15% per annum) of the basic
21
Key Other material

President/ management risk takers/ controllers
CEO* personnel
ees in '000)
– 369 10.668
75.073 304.376 750.890

55.000 152.046 240.940
– 9.268 29.196
240 16.756 8.387
2.267 1.597 7.715
100.000 3.500 –
– 29.979 598
833 – –
– 1.690 61.287
106 – 1.900
233.519 519.581 1,111,581
1 23 142
r. Shoaib Mumtaz– Group Head CFIBG has

2020
Directors Key
Chairman Executive Non President/ management
(other than executive CEO personnel
CEO)
(Rupees in '000)
Fee and allowances 7.210 – 42,850 – 112
i) Fixed – – – 72,362 301.222
ii) Cash Bonus / Awards – – 50,000 144.349
Contribution to defined contribution plan – – – 8.317
Rent & house maintenance – – 240 15.736
Medical – – – 1,828 1.281
Severance allowance – – – – 800
Overseas allowance – – – – 37.559
Security – – – 804 –
Commission – – – – 300
Club membership – – – 1,872 –
Total 7.210 – 42,850 127,106 509.676
Number of Persons 1– 11 1 23
40.1.1 During the year 2021, Rs 34.20 million bonus has been deferred (2020: Rs. 20.60 million).
40.2 Remuneration paid to Directors for participation in Board and Committee meetings
2021
For Board Committee
Board Board's BS & RM & HR & ITC PP & CR & Wo & As Board Total meeting Audit DC PRC RC CA
WC Chairman
Committee
(Rupees in '000)
Mian Mohammad Mansha 4.800 – 200 – 400 – 100 – – –
Mr. S. M. Muneer 1.600 – 300 – – – – 100 – –

Mr. Tariq Rafi 2.000 – – – – – – – – –
Mian Umer Mansha 2.000 400 300 300 – 500 200 – – –
Mrs. Iqraa Hassan Mansha 2.000 – – – 100 – 100 – – –
Mr. Muhammad Ali Zeb 2.000 500 – 400 400 – 300 400 – –
Mr. Mohd Suhail Amar Suresh 4.000 – 400 400 – 500 – – – –
Mr. Yahya Saleem 4.000 – – – 200 100 – – – –
Mr. Salman Khalid Butt 4.000 – 400 400 200 500 – 400 – –
Mr. Masood Ahmed Puri 4.000 – 400 – – – – – – –
Mr. Shahzad Hussain 2.000 500 – – – – – – – –
Mr. Shariffuddin Bin Khalid 4.000 500 – – – – – – – –
36.400 1.900 2.000 1.500 1.300 1.600 700 900 – –

Key Other material
management risk takers/
personnel controllers
0)
112 10.111
301.222 684.109
144.349 218.954
8.317 25.756
15.736 10.948
1.281 5.694
800 –
37.559 –
– –
300 43.407
– 300
509.676 999.279
23 124
PRC RC CA MC
5.500
2.000
2.000
3.700
2.200
4.000
5.300
4.300
5.900
4.400
2.500
4.500
46.300
2020
For Board Committee
Board Board's BS & RM & HR & ITC RC PP & CR & Wo & *As
meeting Audit DC PRC CA MC WC Board
Committ Chairma
ee n
(Rupees in '000)
Mian Mohammad Mansha 3.840 – 300 – 300 – 400 – – 2.370
Mr. S. M. Muneer 1.700 – 100 – – – – 100 – –

Mr. Tariq Rafi 1.700 – – – – – – – 200 –
Mian Umer Mansha 1.700 500 400 500 – 500 400 – 300 –
Mr. Muhammad Ali Zeb 1.700 500 – 500 300 – 300 400 300 –
Mr. Yahya Saleem 4.466 – – – 300 200 – – – –
Mr. Salman Khalid Butt 4.586 – 400 500 – 500 – 400 – –
35.990 2.000 2.000 2.000 1,100 1,700 1.200 900 800 2.370
*During the year 2020, the Board Chairman was paid a proportionate amount of Rs 2.370 million in lieu of fixed annual
remuneration approved by the shareholders of the Bank in its 62nd Annual General Meeting held on March 26, 2010. Effect
from February 05, 2020 in accordance with BPRD Circular No. 03 of 2019 dated August 19, 2019, the remuneration to the
Chairman for attending the Board and committee meetings was paid inline with the remuneration scale approved by the
shareholders of the Bank in its 72nd Annual General Meeting held on March 19, 2020.
40.3 The Chairman has been provided with free use of the Bank maintained car. In addition to the above, the Chief Executive and c
executives are provided with free use of the Bank’s maintained cars and household equipment in accordance with the terms of their
employment.
41. FAIR VALUE MEASUREMENTS
The fair value of traded investments is based on quoted market prices, except for tradable securities classified by the Bank as ‘held to maturity’.
Quoted securities classified as held to maturity are carried at amortised cost. Fair value of unquoted equity investments other than investments in
associates and subsidiaries is determined on the basis of break up value of these investments as per the latest available financial statements.
Fair value of fixed term loans, other assets, other liabilities, fixed term deposits and borrowings cannot be calculated with sufficient
reliability due to absence of current and active market for such assets and liabilities and reliable data regarding market rates for similar
instruments. The provision for impairment of loans and advances has been calculated in accordance with the Bank’s accounting policy
stated in note 6.4 to these unconsolidated financial statements.
The maturity and repricing profile and effective rates are stated in note 45.
In the opinion of the management, the fair value of the financial assets and financial liabilities other than those carried at fair value and
disclosed in note 41.1 are not significantly different from their carrying values since assets and liabilities are either short-term in nature
re-priced over short term.
Total
7.210
1.900
1.900
4.300
1.500
4.000
5.860
4.966
6.386
4.866
2.200
4.972
50.060
illion in lieu of fixed annual
held on March 26, 2010. Effective
, 2019, the remuneration to the
ation scale approved by the
above, the Chief Executive and certain

dance with the terms of their
the Bank as ‘held to maturity’.

ments other than investments in
lable financial statements.
be calculated with sufficient

egarding market rates for similar
th the Bank’s accounting policy as
an those carried at fair value and

es are either short-term in nature or
41.1 Fair value of financial assets
The Bank measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measuremen
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).
Valuation techniques used in determination of fair valuation of financial instruments within
level 2
Item Valuation approach and input used
Federal Government The fair values of Treasury Bills and fixed rate Pakistan Investments Bonds are determined using
securities the PKRV rates. Floating rate PIBs are revalued using PKFRV rates.
Term Finance and Bonds Investments in debt securities (comprising term finance certificates, bonds and any other security
issued by a company or a body corporate for the purpose of raising funds in the form of
redeemable capital) are valued on the basis of the rates announced by the Mutual Funds
Association of Pakistan (MUFAP) in accordance with the methodology prescribed by the
Securities and Exchange Commission of Pakistan.
Foreign exchange contracts The valuation has been determined by interpolating the mid rates announced by the State Bank of
Pakistan.
Derivatives The fair values of derivatives which are not quoted in active markets are determined by using
valuation techniques. The valuation techniques take into account the relevant underlying
parameters including foreign currency involved, interest rates, yield curves, volatilities, contracts
duration etc.
Unlisted Shares Breakup value determined on the basis of NAV of the company using the latest available audited
financial statements.
Mutual Funds Units of mutual funds are valued using the Net Asset Value (NAV) announced by the Mutual
Funds Association of Pakistan (MUFAP)
Operating fixed assets (land Land, buildings and non-banking assets acquired in satisfaction of claims are revalued on a
and building) & Non-banking periodic basis using professional valuers. The valuation is based on their assessment of the
assets acquired in satisfaction market value of the assets. The effect of changes in the unobservable inputs used in the valuations
of claims cannot be determined with certainty. Accordingly, a qualitative disclosure of sensitivity has not
been presented in these unconsolidated financial statements.
e of the inputs used in making the measurements:
assets or liabilities.
prices included within Level 1 that are

ces) or indirectly (i.e. derived from prices).
able market
nts within
The table below analyses the financial and non-financial assets carried at fair values, by valuation methods. For financial ass
the Bank essentially carries its investments in debt and equity securities at fair values. Valuation of investments is carried ou
per guidelines specified by the SBP. In case of non-financial assets, the Bank has adopted revaluation model (as per IAS 16)
respect of land and building.
2021
Carrying Level 1 Level 2 Level 3 Total value / Notional valu
(Rupees in '000)
Federal Government Securities 968,539,477 – 968,539,477
Shares 20,800,775 20,800,775 –
Non–Government Debt Securities 1,449,740 – 1,449,740
Foreign Securities 7,544,505 – 7,544,505
and buildings) 44,349,165 – 44,349,165
Non–banking assets 2,785,535 – 2,785,535
exchange 119,831,839 –
Forward sale of foreign
exchange 97,547,207 –
Derivatives purchase 2,217,390 –
Derivatives sale 2,217,390 –
On balance sheet
financial instruments
Financial assets –
measured at fair value
Investments
Financial assets – disclosed

but
not measured at fair value
Investments (HTM, unlisted
ordinary shares, subsidiaries
and associates) 37,250,99 – –
9
Non – Financial Assets
measured
at fair value
Operating fixed assets (land
Off–balance sheet
financial
instruments – measured
at fair value
Forward purchase of
foreign
values, by valuation methods. For financial assets,
values. Valuation of investments is carried out as
has adopted revaluation model (as per IAS 16) in
Level 3 Total value / Notional value
)
968,539,477 – 968,539,477
– – 20,800,775
1,449,740 – 1,449,740
7,544,505 – 7,544,505
44,349,165 – 44,349,165
2,785,535 – 2,785,535
3,767,037 – 3,767,037
3,836,455 – 3,836,455
304.893 – 304.893
302.365 – 302.365
– –
2020
Carrying Level 1 Level 2 Level 3 Total value / Notional value
(Rupees in '000)
On balance sheet financial instruments
Financial assets – measured at fair value
Investments
Federal Government Securities 957,482,754 – 957,482,754

Shares 18,171,840 18,171,840 –
Non–Government Debt Securities 1,800,092 – 1,800,092
Foreign Securities 7,474,188 – 7,474,188
Financial assets – disclosed but
not measured at fair value

Investments (HTM, unlisted ordinary shares, subsidiaries
and associates) 30,940,574 – – – –
Non – Financial Assets measured at fair value

Operating fixed assets (land
and buildings) 44,275,487 – 44,275,487

Non–banking assets 4,036,914 – 4,036,914
Off–balance sheet financial instruments

– measured at fair value
Forward purchase of foreign exchange

168,432,858 – 3,902,198
Forward sale of foreign

exchange 149,987,717 – 4,271,423
Derivatives purchase 2,158,111 – 517.033
Derivatives sale 2,313,272 – 513.343

The Bank’s policy is to recognise transfers into and out of the different fair value hierarchy levels at the date the event or change in
circumstances that caused the transfer occurred. There were no transfers between levels 1 and 2 during the year.
(a) Financial instruments in level 1

Financial instruments included in level 1 comprise of investments in listed ordinary shares and units of mutual funds.
(b) Financial instruments in level 2

Financial instruments included in level 2 comprise of Sukuk Bonds, Pakistan Investment Bonds, Market Treasury Bills, Term
Finance certificates, FX options, Cross Currency Swaps, Interest Rate Swaps and Forward Exchange Contracts.
(c) Financial instruments in level 3

Currently, no financial instruments are classified in level 3.
alue / Notional value
– 957,482,754
– 18,171,840
– 1,800,092
– 7,474,188
– 44,275,487
– 4,036,914
– 3,902,198
– 4,271,423
– 517.033
– 513.343
t the date the event or change in
ing the year.
s of mutual funds.
onds, Market Treasury Bills, Term

e Contracts.
42 SEGMENT INFORMATION
42.1 Segment details with respect to business activities
The segment analysis with respect to business activity is as follows:
2021
Retail Consumer Corporate Treasury International Others Sub- Eliminations Total Banking Banking Banking Banking to
(Rupees in '000)
Profit & Loss
Net mark–up/return/profit (38,104,662) 2,780,00 19,317,165 78,719,819 1,274,573 – 63,986,902 –

Inter segment revenue – net 77,312,373 7 (14,651,272) (68,680,723)
(634.693) (130.761) 6,785,076 – –
Non mark–up / return / interest 7,557,975 2,449,02 3,705,780 4,720,484 860.667 779.807 20,073,736 –
income
Total Income 46,765,686 4,594,333 8,371,673 14,759,580 2,004,479 7,564,883 84,060,638 –
Segment direct expenses 23,132,042 1,645,327 612.300 385.746 1,186,267 9,932,379 36,894,056 –
Total expenses 23,132,042 1,645,322 612.300 385.746 1,186,267 9,932,379 36,894,056 –
Provisions / (reversals) 1,143,188 123.8092 (128.002) (27.836) 245.033 (6,178,920) (4,822,728) –
Profit before tax 22,490,456 2,825,20 7,887,375 14,401,670 573.179 3,811,424 51,989,310 –
6
Balance Sheet
Cash and Bank balances 59,335,963 487.065 263.447 97,130,099 23,726,201 2,500,714 183,443,48 –
Investments – – 9,125,927 1,012,813,1 13,646,390 – 1,035,585,49 –
Net inter segment lending 1,109,475,89 – – 79– – 187,691,25 96
1,297,167,1 (1,297,167,1
Lendings to financial institutions 2– – – 18,396,089 24,071,021 1– 43
42,467,110 43)
–
Advances – performing 100,287,979 36,615,3 427,159,422 – 19,313,984 – 583,376,75 –
– non performing – net 223.751 72
92.152 26.224 – 5,565,096 427.111 6,334,3347 –
Others 38,048,057 1,846,40 25,494,493 15,021,037 1,897,356 36,953,913 119,261,26 –
Total Assets 1,307,371,64 6 462,069,513 1,143,360,4 88,220,048
39,040,9 227,572,98 3,267,635,52 (1,297,167,1
2 95 04 9 91 43)
Borrowings 15,037,907 – 84,434,986 167,180,272 2,872,391 – 269,525,55 –
6
Deposits and other accounts 1,260,878,14 24,186,8 59,464,220 – 67,311,591 10.684 1,411,851,5 –
Net inter segment borrowing –1 91 298,741,975 973,411,802
10,396,9 14,616,431 – 1,297,167,127 (1,297,167,1
Others 31,455,594 35 19,428,332
4,457,16 2,768,330 3,419,635 53,154,897 43
114,683,95 43)
–
Total liabilities 1,307,371,64 9 462,069,513 1,143,360,4
39,040,9 88,220,048 53,165,581 3,093,228,17 (1,297,167,1
2 95 04 83 43)
Equity – – – – – 174,407,40 174,407,40 –
Total Equity & liabilities 1,307,371,64 39,040,9 462,069,513 1,143,360,4 88,220,048 227,572,98 3,267,635,58
8 (1,297,167,1
2 95 04 9 91 43)
Contingencies & Commitments 64,622,665 – 298,150,190 226,912,026 2,506,084 26,995,977 619,186,94 –
2
2020
Retail Consumer Corporate Treasury International Others Sub– Eliminations Total Banking Banking Banking Banking total
(Rupees in
Profit & Loss '000)
Net mark–up/return/profit (44,807,213) 2,788,656 28,085,051 83,819,922 1,448,07 – 71,334,491 –

Inter segment revenue – net 86,028,798 (486.242) (22,360,468) (69,939,999) 5(171.994) 6,929,905 – –
Non mark–up / return / interest 6,306,650 2,118,001 3,282,442 5,618,895 813.588 (3.789) 18,135,787 –
income
Total Income 47,528,235 4,420,415 9,007,025 19,498,818 2,089,66 6,926,116 89,470,278 –
9
Segment direct expenses 20,460,118 1,462,911 586.415 368.025 1,309,89 9,720,790 33,908,157 –
8
Total expenses 20,460,118 1,462,911 586.415 368.025 1,309,89 9,720,790 33,908,157 –
Provisions / (reversals) 2,306,248 113.643 2,763,155 (31.111) 8129.368 2,031,863 7,313,166 –
Profit before tax 24,761,869 2,843,861 5,657,455 19,161,904 650.403 (4,826,537) 48,248,955 –
Balance Sheet
Cash and Bank balances 58,362,119 317.242 394.030 64,577,425 21,166,578 1,393,773 146,211,167 –
Investments – – 10,578,310 990,720,067 14,571,071 – 1,015,869,44 –
Net inter segment lending 1,050,376,2 – – – – 201,834,39 1,252,210,638 (1,252,210,6
Lendings to financial institutions 36– – – 6,137,258 11,002,195 –9 17,139,4535 35)
–
Advances – performing 94,735,206 26,845,772 313,633,477 – 21,681,241 – 456,895,696 –
non performing – net 171.804 177.613 2.382 – 4,973,95 720.338 6,046,091 –
Others 35,621,546 2,370,726 22,789,948 12,206,991 4
4,580,37 37,731,030 115,300,615 –
4
Total Assets 1,239,266,9 29,711,353 347,398,147 1,073,641,7 77,975,413 241,679,54 3,009,673,10 (1,252,210,6
11 41 0 5 35)
Borrowings 58,910,004 – 10,372,566 91,069,170 3,649,79 – 164,001,533 –
3
Deposits and other accounts 1,147,268,7 21,263,015 65,961,390 – 55,009,174 – 1,289,502,30 –
Net inter segment borrowing 25– 4,816,853 252,358,835 981,733,802 13,301,145 – 1,252,210,634 (1,252,210,6
Others 33,088,182 3,631,485 18,705,356 838.769 6,015,30 51,577,585 113,856,6785 35)
–
Total liabilities 1,239,266,9 29,711,353 347,398,147 1,073,641,7 1
77,975,413 51,577,585 2,819,571,15 (1,252,210,6
11 41 0 35)
Equity – – – – – 190,101,95 190,101,955 –
Total Equity & liabilities 1,239,266,9 29,711,353 347,398,147 1,073,641,7 77,975,413 241,679,545 3,009,673,10 (1,252,210,6
11 41 0 5 35)
Contingencies & Commitments 55,974,597 – 288,001,956 320,068,131 20,930,195 29,063,504 714,038,383 –
g Banking total
63,986,902
–
20,073,736
84,060,638
36,894,056
36,894,056
(4,822,728)
51,989,310
183,443,489
1,035,585,4
96–
42,467,110
583,376,757
6,334,334
119,261,262
1,970,468,4
48
269,525,556
1,411,851,5
27–
114,683,957
1,796,061,0
40
174,407,408
1,970,468,4
48
619,186,942
Banking total
71,334,491
–
18,135,787
89,470,278
33,908,157
33,908,157
7,313,166
48,248,955
146,211,167
1,015,869,4
48–
17,139,453
456,895,696
6,046,091
115,300,615
1,757,462,4
70
164,001,533
1,289,502,3
04–
113,856,678
1,567,360,5
15
190,101,955
1,757,462,4
70
714,038,383
42.2 Segment details with respect to geographical locations
GEOGRAPHICAL SEGMENT ANALYSIS
2021
Pakistan South Asia Middle East Sub–total Eliminations Total
(Rupees in '000)
Profit & Loss
Net mark–up/return/profit 62,725,653 679.587 581.662 63,986,902 –
Inter segment revenue – net 111.365 (81.756) (29.609) – –
Non mark–up / return / interest income 19,226,781 215.132 631.823 20,073,736 –
Total Income 82,063,799 812.963 1,183,876 84,060,638 –
Segment direct expenses 35,803,737 564.433 525.886 36,894,056 –
Total expenses 35,803,737 564.433 525.886 36,894,056 –
Provisions / (reversals) (5,067,762) 190.868 54.166 (4,822,728) –
Profit before tax 51,327,824 57.662 603.824 51,989,310 –
Balance Sheet
Cash and Bank balances 160,029,793 3,174,556 20,239,140 183,443,489 –
Investments 1,021,939,106 8,242,882 5,403,508 1,035,585,496 –
Net inter segment lendings 12,542,106 – – 12,542,106 (12,542,106)
Lendings to financial institutions 18,396,089 42.821 24,028,200 42,467,110 –
Advances – performing 565,099,463 10,411,911 7,865,383 583,376,757 –
– non performing – net 6,249,090 85.244 – 6,334,334 –
Others 117,400,599 1,035,061 825.602 119,261,262 –
Total Assets 1,901,656,246 22,992,475 58,361,833 1,983,010,554 (12,542,106)
Borrowings 266,653,164 1,411,639 1,460,753 269,525,556 –

Deposits and other accounts 1,347,695,134 14,187,721 49,968,672 1,411,851,527 –
Net inter segment borrowing – 6,246,496 6,295,610 12,542,106 (12,542,106)
Others 112,900,540 1,146,619 636.798 114,683,957 –
Total liabilities 1,727,248,838 22,992,475 58,361,833 1,808,603,146 (12,542,106)
Equity 174,407,408 – – 174,407,408 –
Total Equity & liabilities 1,901,656,246 22,992,475 58,361,833 1,983,010,554 (12,542,106)
Contingencies & Commitments 616,680,858 604.010 1,902,074 619,186,942 –
2020
Pakistan South Asia Middle East Sub–total Eliminations Total (Rupees in '000)
Profit & Loss

Net mark–up/return/profit 69,887,495 862.868 584.128 71,334,491 –
Inter segment revenue – net 111.160 (95.930) (15.230) – –
Non mark–up / return / interest income 17,325,905 265.900 543.982 18,135,787 –
Total Income 87,324,560 1,032,838 1,112,880 89,470,278 –
Segment direct expenses 32,601,367 650.469 656.321 33,908,157 –
Total expenses 32,601,367 650.469 656.321 33,908,157 –
Provisions / (reversals) 7,183,798 78.422 50.946 7,313,166 –
Profit before tax 47,539,395 303.947 405.613 48,248,955 –
Balance Sheet
Cash and Bank balances 125,365,815 1,556,335 19,289,017 146,211,167 –

Investments 1,001,298,378 10,519,130 4,051,940 1,015,869,448 –
Net inter segment lendings 12,319,043 – – 12,319,043 (12,319,043)
Lendings to financial institutions 6,137,258 1,864,193 9,138,002 17,139,453 –
Advances – performing 435,310,355 12,722,090 8,863,251 456,895,696 –
– non performing – net 6,034,187 11.904 – 6,046,091 –
Others 110,746,462 4,057,318 496.835 115,300,615 –
Total Assets 1,697,211,498 30,730,970 41,839,045 1,769,781,513 (12,319,043)
Borrowings 160,351,740 1,790,053 1,859,740 164,001,533 –

Deposits and other accounts 1,237,359,663 18,298,522 33,844,119 1,289,502,304 –
Net inter segment borrowing – 6,525,907 5,793,136 12,319,043 (12,319,043)
Others 109,398,140 4,116,488 342.050 113,856,678 –
Total liabilities 1,507,109,543 30,730,970 41,839,045 1,579,679,558 (12,319,043)
Equity 190,101,955 – – 190,101,955 –
Total Equity & liabilities 1,697,211,498 30,730,970 41,839,045 1,769,781,513 (12,319,043)
Contingencies & Commitments 693,108,189 17,479,001 3,451,193 714,038,383 –
r4a2n.s3actionTs between reportable segments are based on an appropriate transfer pricing mechanism
using agreed rates. Furthermore, segment assets and liabilities include inter segment balances. Costs which are not allocated to segments are inclu
in the Head office. Income taxes are managed at bank level and are not allocated to operating segments.
42.4 No revenue from transactions with a single external customer or counterparty amounted to 10% or
more of the Bank’s total revenue in 2021 or 2020.
al
63,986,902
–
20,073,736
84,060,638
36,894,056
36,894,056
(4,822,728)
51,989,310
183,443,489
1,035,585,496
–
42,467,110
583,376,757
6,334,334
119,261,262
1,970,468,448
269,525,556
1,411,851,527
–
114,683,957
1,796,061,040
174,407,408
1,970,468,448
619,186,942
Total (Rupees in '000)
71,334,491
–
18,135,787
89,470,278
33,908,157
33,908,157
7,313,166
48,248,955
146,211,167
1,015,869,448
–
17,139,453
456,895,696
6,046,091
115,300,615
1,757,462,470
164,001,533
1,289,502,304
–
113,856,678
1,567,360,515
190,101,955
1,757,462,470
714,038,383
are not allocated to segments are included

43 RELATED PARTY TRANSACTIONS
The Bank has related party relationship with its subsidiaries, associates, employee benefit plans, its directors and key management personnel and their clo
The Banks enters into transactions with related parties in the ordinary course of business and on substantially the same terms as for comparable transactio
retirement benefits and other benefit plans are made in accordance with the actuarial valuations / terms of the contribution plan. Remuneration to the exec
Details of transactions with related parties during the year, other than those which have been disclosed elsewhere in these unconsolidated financial statem
2021 2020
Key Other Key Other Directors management Subsidiaries Associates
Parties personnel
(Rupees in '000)
Lendings to Financial Institutions

Opening balance Addition during the year Repaid during the
– – – –
year – 103,400,000
– – – –
(99,900,000)
– – – –
Closing balance – – 3,500,000 – –

Investments
Opening balance – – 12,319,037 700.401 254.253
Investment disposed off during the year – – – – –
Closing balance – – 12,319,037 700.401 254.253
Provision for diminution in value of investments – – 725 – 5.000
Advances
Opening balance 1.042 166.757 856.704 356.898 152.147
Addition / exchange adjustment during the year 16.460 48.891 83.358 1,390,000 3,103,637
Repaid during the year (16.576) (53.410) – (728.449) (170.922)
Transfer in / (out) – net (817) (14.907) – – –
Closing balance 109 147.331 940.062 1,018,449 3,084,862
Other assets
Markup receivable – 2.436 20.398 17.154 16.572
Advances, deposits, advance rent and
other prepayments – – 7.040 182.467 44.060
Receivable from Pension Fund – – – – 3,218,426
Unrealized gain on forward foreign exchange
contracts – outstanding – – – – –
Closing balance – 2.436 27.438 199.621 3,279,058
Borrowings
Opening balance – – 25.356 – 77.139
Borrowings / exchange adjustment during the year – – 598.267 – 25.981
Settled during the year – – (604.489) – –
Closing balance – – 19.134 – 103.120
ement personnel and their close family members.
s as for comparable transactions with person of similar standing. Contributions to and accruals in respect of staff
an. Remuneration to the executives / officers is determined in accordance with the terms of their appointment.
consolidated financial statements are as follows:
2020
Subsidiaries Associates related Directors management Subsidiaries Associates related personnel
rsonnel parties
000)
– – 880,853 – –
– – 23,703,928 – –
– – (24,584,781) – –
– – – – –
– – 12,346,537 700.401 254.253

– – (27.500) – –
– – 12,319,037 700.401 254.253
– – 725 – 5.000
1.722 129.048 889.811 – 339.520

18.202 60.257 – 356.898 336.695
(18.882) (21.947) (33.107) – (303.183)
– (601) – – (220.885)
1.042 166.757 856.704 356.898 152.147
– 3.149 2.338 895 2.382
– – 12.715 310.504 27.835

– – – – 3,370,179
– – 39.415 – –
– 3.149 54.468 311.399 3,400,396
– – 3.902 – 69.166
– – 482.356 – 7.973
– – (460.902) – –
– – 25.356 – 77.139
2021 2020
Parties personnel
(Rupees in '000)
Deposits and other accounts
Opening balance 302.130 138.566 53.877 4,815,780 4,869,941

Received during the year 2,874,441 1,315,435 3,162,263 49,364,225 86,845,287
Withdrawn during the year (2,468,887) (1,256,285) (3,164,179) (50,352,159) (83,429,013)
Transfer in / (out) – net (7.137) (1.649) – – (1.194)
Closing balance 700.547 196.067 51.961 3,827,846 8,285,021
Other liabilities
Markup payable 1.475 – 2 18.219 16.792

Accrued expenses and other payable 100.100 3.500 23.556 66.889 2.893
Payable to MCB Employee Security Services – – – – 55.567
Advance received against sale of property – – 20.000 – –
Closing balance 101.575 3.500 43.558 85.108 75.252
Contingencies and Commitments
Letter of Credit – – – – 5,207,768

Forward foreign exchange contracts (Notional) – – – – –
Bank guarantee – – 35.276 10.739 666.342
Closing balance – – 35.276 10.739 5,874,110
Income
Markup / return / interest earned 23 13.962 172.491 35.654 20.988

Fee and commission income – – 48.228 968.003 7.748
Dividend income – – 184.784 192.500 96.853
Gain on forward foreign exchange contracts
matured during the year – – – – 44.830
Net gain / (loss) on sale of securities (13) – – (62) (837)
Gain on sale of assets – 77 – – –
Rent income – – 50.892 12.662 2.280
Expense
Markup / return / interest expensed 22.885 2.059 2.452 142.524 647.484

2020
Subsidiaries Associates related Directors management Subsidiaries Associates related personnel
sonnel parties
000)
602.381 140.761 54.482 3,657,552 4,179,849

669.282 1,189,437 2,349,111 44,628,206 76,375,987
(969.533) (1,163,832) (2,346,830) (43,469,978) (75,154,115)
– (27.800) (2.885) – (531.780)
302.130 138.566 53.878 4,815,780 4,869,941
50 100 – 42.549 10.654

– – 22.850 62.624 32
– – – – 27.031
– – 20.000 – –
50 100 42.850 105.173 37.717
– – – 10.512 1,756,270
– – 1,342,106 – –
– – 102.038 – –
– – 1,444,144 10.512 1,756,270
– 13.098 143.011 1.809 13.189

– – 30.253 1,177,371 1.638
– – 120.109 192.500 36.213
– – – – 53.120
72 40 – 3.836 6.485
– 98 – – –
– – 41.739 8.808 2.280
30.257 2.626 2.008 223.767 233.677

2021 2020
Parties personnel
(Rupees in '000)
Other Operating expenses

Clearing expenses paid to NIFT – – –
Contribution to provident fund – – –
Rent expenses – – 11.787
Cash sorting expenses – – –
Stationery expenses – – –
Security guards expenses – – –
Remuneration to key executives and
non–executive directors fee 279.819 519.581 –
Outsourcing service expenses – – –

Donation Expense – – –
E–dividend processing fee and CDC charges – – –
Travelling expenses – – –
Hotel stay expenses – – –
Repair and maintenance charges – – –
Advertisement expenses – – –
Miscellaneous expenses and payments – – 587
Insurance premium–net of refund – – –
Insurance claim settled – – –
Other Transactions
Proceeds from sale of assets – 77 –

Purchase of fixed assets – – –
Sale of foreign currency – – 23,435,469
Purchase of foreign currency – – 13,597,031
Payments against home remittances – – 4,701,212
Reimbursement of other expenses – – 43.048
Sale of government securities 903.221 33.431 –
Purchase of government securities 26.076 – –
Forward exchange contracts matured
during the year – – –
The Chairman has been provided with free use of the Bank maintained car. The Chief Executive and certain executives are provided with free use
maintained cars and household equipment in accordance with the terms of their employment.
2020
agement Subsidiaries Associates related Directors management Subsidiaries Associates related personnel
personnel parties
Rupees in '000)
– 154.329 – – – – 166.175
– 430.857 – – – – 394.598
55.945 47.990 – – 10.715 42.264 37.947
– 99.821 – – – – 114.845
– 259.775 – – – – 244.697
– 354.797 – – – – 329.116
– – 177.166 509.676 – – –
196.446 – – – – 275.517 –
– – – – – – 95.000
– 6.209 – – – – 4.757
– 51.534 – – – – 38.507
– 146 – – – – 3.410
– 2.148 – – – – 1.989
– 3.132 – – – – 7.308
– 2.466 – – – – 3.225
495.818 – – – – 646.676 –
40.991 – – – – 46.067 –
– – – 381 – – –
18.782 33.245 – – 1.550 3.277 5.712
– – – – 45,457,828 – –
– – – – 35,244,343 – –
– – – – 3,898,627 – –
– – – – 27.289 – –
10,113,18 19,669,035 268.847 124.304 – 5,740,348 8,592,672
19,077,229 5,096,819 19.827 999 – 1,232,917 653.148
2
– 5,527,242 – – – – 11,446,226
n executives are provided with free use of the Bank’s

2021 2020
(Rupees in '000)
44 CAPITAL ADEQUACY, LEVERAGE RATIO & LIQUIDITY REQUIREMENTS
44.1 Capital Adequacy
Minimum Capital Requirement (MCR):
Paid-up capital (net of losses)
Capital Adequacy Ratio (CAR):
Eligible Common Equity Tier 1 (CET 1) Capital Eligible Additional Tier 1 (ADT 1)
Capital
Total Eligible Tier 1 Capital
Eligible Tier 2 Capital 11,850,600
Total Eligible Capital (Tier 1 + Tier 2)
Risk Weighted Assets (RWAs):
Credit Risk Market Risk Operational Risk 150,353,964
Total
Common Equity Tier 1 Capital Adequacy ratio Tier 1 Capital Adequacy Ratio –
Total Capital Adequacy Ratio
150,353,964
19,249,838
169,603,802
711,304,243
132,894,633
153,080,409
997,279,285
15.08%
15.08%
17.01%
The SBP through its BSD Circular No. 07 dated April 15, 2009 has prescribed the minimum paid up capital (net of losses) for all local
incorporated banks of Rs. 10 billion. The paid up capital of the Bank for the year ended December 31, 2021 stood at Rs. 11.851 billion
(2020: Rs. 11.851 billion) and is in compliance with the SBP requirements. Further, under Basel III instructions, banks are required to
maintain minimum Capital Adequacy Ratio (CAR) of 11.50% as at reporting dates (including a capital conservation buffer of 1.5% wh
has been revised downwards from 2.5% as per BPRD Circular No. 12 dated March 26, 2020), Common Equity Tier 1 (CET 1) ratio of
and Tier 1 ratio of 7.50% as at reporting dates. The Bank is fully compliant with prescribed ratios.
Under the current capital adequacy regulations, credit risk and market risk exposures are measured using the Standardized Approach an
operational risk is measured using the Basic Indicator Approach. Credit risk mitigants are also applied against the Bank’s exposures ba
eligible collateral under simple approach.
2021 2020
(Rupees in '000)
44.2 Leverage Ratio (LR):
Eligible Tier-1 Capital 150,353,964

Total Exposures 2,451,779,962
Leverage Ratio 6.13%
11,850,600
152,901,428
–
152,901,428
35,507,111
188,408,539
635,599,185
122,603,850
139,735,092
897,938,127
17.03%
17.03%
20.98%
mum paid up capital (net of losses) for all locally

December 31, 2021 stood at Rs. 11.851 billion
der Basel III instructions, banks are required to
luding a capital conservation buffer of 1.5% which
2020), Common Equity Tier 1 (CET 1) ratio of 6.0%
ibed ratios.
e measured using the Standardized Approach and

are also applied against the Bank’s exposures based on
152,901,428
2,174,932,446
7.03%
2021 2020
(Rupees in '000)
44.3 Liquidity Requirements
Liquidity Coverage Ratio (LCR): Total High Quality Liquid Assets Total Net
Cash Outflow
1,109,267,469
450,352,949
Liquidity Coverage Ratio 246.31%
Net Stable Funding Ratio (NSFR):
Total Available Stable Funding Total Required Stable Funding
1,213,585,786
782,982,025
Net Stable Funding Ratio 155.00%

The full disclosures on the Capital Adequacy, Leverage Ratio & Liquidity Requirements as per SBP instructions issued fro
45 RISK MANAGEMENT
Risk is an inherent part of banking business activities. The risk management framework and governance structure at Bank helps to m
and counter any foreseeable risk in its various lines of business. Risk awareness forms an integral part of strategic and operational activitie
risk management. Through its Global Risk Management Policy, the Bank sets the best course of action under uncertainty by identifying, prioritiz
mitigating and monitoring risk issues, with the goal of enhancing shareholders’ value. Bank’s risk management structure is based on the followin
guiding principles:
• Establishing independent and properly resourced risk management function.
• Promoting open risk culture
Keeping in view dynamics of internal and external environment, the bank regularly reviews and updates policy manuals / frameworks a
procedures in accordance with domestic regulatory environment and international standards.
The Bank executes its risk strategy and undertakes controlled risk-taking activities within its risk management framework. The Board o
Directors and its relevant committee, i.e. the Risk Management & Portfolio Review Committee (RM&PRC), the senior management
its relevant committees, i.e. the Management Credit and Risk Committee (MC&RC), Asset Liability Committee (ALCO), etc., are
responsible to ensure formulation and implementation of comprehensive Risk Management Framework. This framework is based on pr
risk identification, measurement, management and monitoring processes which are closely aligned with the activities of the bank. The
framework combines core policies, procedures and process designs with broad oversight and is supported by an efficient monitoring
mechanism across the bank to ensure that risks are kept within an acceptable level.
The Bank ensures that not only the relevant risks are identified but their implications are also considered and basis provided for manag
and measuring the risks. Through Internal Control units, the Bank ensures that effective controls are in place to mitigate each of the ide
risk.
Independent from business groups, Head of Risk Management reports functionally to the Risk Management & Portfolio Review Comm
(RM&PRC) and administratively to the President; the RM&PRC convenes regular meetings to evaluate Bank’s risk and portfolio
concentrations. The Risk Management Group performs the following critical functions:
• Risk Management Policy Formulation
• Credit Risk Management
• Credit Review
• Credit Risk Control
• Market Risk Management
• Liquidity Risk Management
• Operational Risk Management
• IT Risk Management
Keeping in view the international best practices and SBP requirements, Board of Directors of the Bank has approved a Risk Appetite Statemen
which takes into account quantitative and qualitative risk indicators, covering target ratios, credit, market, operational, liquidity and business
45.1 Credit Risk

Credit risk arises from bank’s dealings with individuals, corporate borrowers, financial institutions, sovereigns etc. The Bank is exposed to
risk through its lending and investment activities. Credit risk makes up the largest part of the Bank’s exposure and it stems from Bank’s both on a
off- balance sheet activities. Purpose of Credit Risk Management function is to identify, measure, manage, monitor and mitigate credit risk. To m
adverse outcomes in terms of unfavorable scenarios, multiple control factors in the lending structure of the Bank provide additional comfort and
support. Such controls range from quality of eligible collateral, pre-disbursement safety measures to post disbursement monitoring.
The Bank has adopted Standardized Approach to measure Credit risk regulatory capital charge in compliance with Basel requirements.
approach mainly takes into account the assessment of external credit rating agencies. In line with SBP guidelines on Internal Credit Ris
Rating Systems, the Bank has developed rating systems and all its borrowers are internally rated. In order to further enhance the credit
analysis and the processes, Probability Default based Internal Credit Risk Rating (ICRR) system based on the statistical modeling and
validation in line with Basel principles. The revamped ICRR is currently focused on Corporate Commercial and Corporate Large custo
categories. The ICRR Model for rating of SME Customers has also been revamped to achieve more accurate results and to improve the
quality of credit decisions.
In order to manage bank’s credit risk, following policies and procedures are in place:
• Individuals who take or manage risks clearly understand them in order to protect the Bank from avoidable risks;
• The approval of credit limits to counter parties are subject to pre-fact review;
• Extension in credit facility or material change to the credit facility is subject to credit review;
• Approval and review process is reviewed by RM&PRC and internal audit;
• Management periodically reviews the powers of credit approving and credit reviewing authorities.
Ongoing administration of the credit portfolio is an essential part of the credit process that supports and controls extension and mainten
of credit. The Bank’s Credit Risk Control is responsible for performing following activities:
• Credit disbursement authorization
• Collateral coverage and monitoring
• Compliance of loan covenants/ terms of approval
• Maintenance/ custody of collateral and security documentation
• Credit Risk Limit Controls
Credit Risk Monitoring is based on a comprehensive reporting framework. Continuous monitoring of the credit portfolio and the ris
attached thereto are carried out at different levels including businesses, Audit & Risk Assets Review, Credit Risk Control, Credit
Management Division, etc.
To ensure a prudent distribution of asset portfolio, the Bank manages its lending and investment activities within an appropriate limits
framework. Per party exposure limit is maintained in accordance with SBP Prudential Regulations.
The Bank creates specific provision against Non-Performing Loans (NPLs) in accordance with the Prudential Regulations and other
directives issued by the State Bank of Pakistan (SBP) and charged to the profit and loss account. Provisions are held against identified
as unidentified losses. Provisions against unidentified losses include general provision against consumer loans and Small enterprise (SE
made in accordance with the requirements of the Prudential Regulations issued by SBP and provision based on historical loss experien
advances. General provisions pertaining to
934,508,535
393,109,786
237.72%
1,130,301,361
646,417,507
174.86%
equirements as per SBP instructions issued from time to time are available at https://www.mcb.com.pk/investor-relations/ capital-adequacy-statements.
nd governance structure at Bank helps to mitigate

ntegral part of strategic and operational activities of
ction under uncertainty by identifying, prioritizing,
k management structure is based on the following five
iews and updates policy manuals / frameworks and

dards.
in its risk management framework. The Board of

mmittee (RM&PRC), the senior management and
), Asset Liability Committee (ALCO), etc., are
ment Framework. This framework is based on prudent
ely aligned with the activities of the bank. The
ht and is supported by an efficient monitoring
e also considered and basis provided for managing

e controls are in place to mitigate each of the identified
he Risk Management & Portfolio Review Committee

tings to evaluate Bank’s risk and portfolio
ons:
Bank has approved a Risk Appetite Statement,
redit, market, operational, liquidity and business risks.
titutions, sovereigns etc. The Bank is exposed to credit

k’s exposure and it stems from Bank’s both on and
manage, monitor and mitigate credit risk. To manage
ure of the Bank provide additional comfort and
asures to post disbursement monitoring.
charge in compliance with Basel requirements. The

line with SBP guidelines on Internal Credit Risk
ally rated. In order to further enhance the credit risk
R) system based on the statistical modeling and
orporate Commercial and Corporate Large customer
chieve more accurate results and to improve the
e Bank from avoidable risks;
dit review;
ing authorities.
hat supports and controls extension and maintenance

ities:
monitoring of the credit portfolio and the risks

isk Assets Review, Credit Risk Control, Credit Risk
vestment activities within an appropriate limits

Regulations.
nce with the Prudential Regulations and other

account. Provisions are held against identified as well
against consumer loans and Small enterprise (SEs)
and provision based on historical loss experience on
overseas advances are made in accordance with the requirements of the regulatory authorities of the respective countries. Ple
refer note No. 11.4 for reconciliation of changes in specific and general provisions.
The Risk Management function of the Bank has further strengthened its credit review procedures in the light of COVID-19 a
regularly conducting assessments of the credit portfolio to identify borrowers most likely to be affected due to changes in the
business and economic environment.
Management of Non Performing Loans
The Bank has a Special Assets Management (SAM) function, which is responsible for management of non performing loans
undertakes restructuring / rescheduling of problem loans, as well as litigation of both civil and criminal cases for collection o
debt.
Stress Testing
Credit Risk stress testing is a regular exercise. Bank’s credit exposures including funded and non- funded facilities are subjec
stress tests. This exercise is conducted on a quarterly basis through assigning shocks to all assets of the Bank and assessing i
resulting affect on capital adequacy inline with SBP requirements.
45.1.1 Lendings to financial institutions

Credit risk by public / private sector
Gross lendings Non - performing lendings Provision held 2021 2020 2021
2020 2021 2020
Public/ Government Private

9 24,071,021 15,975,261 – – –
18,396,089 1,164,192 – – –
42,467,110 17,139,453 – – –
45.1.2 Investment in debt securities
Credit risk by industry sector
Gross Investments Non - performing Investments Provision held 2021 2020
2021 2020 2021 2020
(Rupees in '000)
Chemical and pharmaceuticals 1,750,000 1,750,000 – – –
Financials including
government securities 1,007,748,243 971,996,915 118 118 118
Manufacture of cement 285.000 285.000 285.000 285.000 285.000
Manufacture of sugar 145.656 145.656 145.656 145.656 145.656
Manufacture of textiles 40.732 53.531 40.732 53.531 40.732
Others 6.153 6.153 6.153 6.153 6.153
1,009,975,784 974,237,255 477.659 490.458 477.659
Public/ Government 1,000,376,469 963,820,326 – – –

Private 9,599,315 10,416,929 477.659 490.459 477.659
1,009,975,784 974,237,255 477.659 490.459 477.659
horities of the respective countries. Please
procedures in the light of COVID-19 and is

ely to be affected due to changes in the
r management of non performing loans. SAM

civil and criminal cases for collection of
ed and non- funded facilities are subjected to

o all assets of the Bank and assessing its
n held 2021 2020 2021
–
–
Provision held 2021 2020
118
285.000
145.656
53.532
6.153
490.459
–
490.459
490.459
45.1.3 Advances
Gross Advances Non - performing Advances Provision held Note 2021 2020 2021
2020 2021 2020
(Rupees in '000)
Agriculture, forestry and fishing 6,296,378 5,122,317 418.737 477.421 358.691
Construction 14,212,957 18,081,634 351.226 289.791 296.478

Electricity, gas, steam and air
conditioning supply 33,914,125 37,521,494 376.717 376.717 376.717
Electronics and electrical
appliances 8,492,204 5,842,215 92.104 102.262 92.104
Financials 32,744,189 17,534,127 301.280 462.665 301.280
Footwear and Leather
garments 5,357,720 3,778,108 163.781 170.131 163.781
Human health and social
work activities 548.329 922.333 45.081 45.596 45.081
Individuals 51,083,890 43,906,423 3,824,895 4,316,081 3,713,883
Manufacture of basic metals
and metal products 19,213,851 14,913,709 3,980,254 3,028,467 3,881,891
Manufacture of cement 16,801,079 9,742,405 392.862 392.862 392.862
Manufacture of chemicals
and pharmaceutical products 60,149,203 42,384,893 232.324 275.980 232.324
Manufacture of coke and
refined petroleum products 4,031,606 4,982,529 855.984 412.061 855.984
Manufacture of food &
beverages products 49,347,312 39,631,918 3,066,745 3,274,437 2,851,306
Manufacture of machinery,
equipment and transport
Equipment 7,573,933 2,182,220 373.053 433.943 373.053
Manufacture of rubber
and plastics products 6,056,179 4,034,047 606.722 665.778 606.722
Manufacture of sugar 39,228,616 33,283,221 4,419,576 4,658,087 4,419,576
Manufacture of textiles 114,257,52 76,794,166 12,733,639 13,475,28 12,497,961
Mining and quarrying 4,359,9433 5,033,270 3.714 5.0195 3.714
Manufacturing of Pulp,
Paper, Paperboard 6,238,915 2,492,010 174.634 179.539 174.634
Ship Breaking 4,088,794 5,520,548 3,988,794 4,348,014 3,988,794
Services 14,907,349 10,353,488 430.017 464.150 415.831
Telecommunications 23,855,551 18,287,167 42.798 42.798 42.798
Transportation and storage 61,872,867 53,061,768 67.125 75.901 66.559
Wholesale and retail traders 45,169,859 53,691,912 13,041,819 12,521,76 7,500,461
Others 5,771,499 4,452,280 506.924 694.2948 503.986
11 635,573,87 513,550,202 50,490,805 51,189,04 44,156,471
1 7
Public/ Government 89,835,878 74,377,320 639.825 639.825 639.825

Private 545,737,99 439,172,882 49,850,980 50,549,22 43,516,646
11 635,573,873 513,550,202 50,490,805 51,189,042 44,156,471
1 7
Note 2021 2020 2021
437.355
278.464
374.996
101.825
462.665
169.736
34.973
3,911,755
3,018,387
392.862
273.047
411.445
3,058,910
396.551
662.506
4,655,219
13,322,828
5.019
150.661
4,348,014
460.207
42.798
66.253
7,471,824
634.656
45,142,956
639.825
44,503,131
45,142,956
2021 2020
45.1.4 Contingencies and Commitments

Agriculture, forestry and fishing 2,834,653
Construction 17,599,642
Electricity, gas, steam and air conditioning supply 19,650,014
Electronics and electrical appliances 7,447,158
Financials 291,315,065
Footwear and Leather garments 1,478,562
Human health and social work activities 336.876
Individuals 2,269,551
Manufacture of basic metals and metal products 7,468,627
Manufacture of cement 15,168,937
Manufacture of chemicals and
pharmaceutical products 25,749,257
Manufacture of coke and refined petroleum products 1,671,507
Manufacture of food & beverages products 22,767,423
Manufacture of machinery, equipment and
transport Equipment 14,812,389
Manufacture of rubber and plastics products 5,096,950
Manufacture of sugar 14,556,109
Manufacture of textiles 37,035,617
Mining and quarrying 887.679
Manufacturing of Pulp, Paper, Paperboard 4,388,673
Ship Breaking 114.933
Services 62,032,269
Telecommunications 19,642,288
Transportation and storage 8,835,202
Wholesale and retail traders 11,845,793
Others 24,181,768
24 619,186,942

Public/ Government 165,079,709
Private 454,107,233
24 619,186,942
45.1.5 Concentration of Advances
The bank top 10 exposures on the basis of total (funded and non-funded exposures) aggregated to Rs 250,579.571 million (2020: Rs. 235,823.259 million)
following:
2021 2020
(Rupees in '000)
Funded 95,079,790
Non Funded 155,499,781

Total Exposure 250,579,571
The sanctioned limits against these top 10 exposures aggregated to Rs 296,220.092 million (2020:
311,201.617 million)
There is no provision against these top 10 exposures.
Rupees in '000)
2,134,487
20,639,681
24,907,422
4,968,549
390,150,887
517.178
1,612,922
2,618,245
8,207,595
4,686,576
25,507,582
8,129,298
16,304,638
8,946,430
4,883,983
6,848,689
33,696,488
144.328
1,362,984
412.969
57,348,336
17,006,854
10,643,212
25,016,888
37,342,162
714,038,383
216,881,697
497,156,686
714,038,383
79.571 million (2020: Rs. 235,823.259 million) are as
75,373,723
160,449,536
235,823,259
20.092 million (2020:
45.1.6 Advances - Province/Region-wise Disbursement & Utilization
2021
Disbursements Utilization
KPK AJK
Punjab Sindh including Balochistan Islamabad including Gilgit
FATA Baltistan
(Rupees in '000)
Province/Region
Punjab 495,695,792 467,859,096 13,081,055 13,872,568 121.783 761.290
Sindh 387,450,221 19,418,862 343,177,444 8,359,802 16,494,113 –
KPK including FATA 5,699,929 – – 5,699,929 – –
Balochistan 2,396,999 – – – 2,396,999 –
Islamabad 24,269,595 35.023 – 1,347,469 – 22,887,103
AJK including
Gilgit–Baltistan 338.167 44.871 – – – –
Total 915,850,703 487,357,852 356,258,499 29,279,768 19,012,895 23,648,393
2020
KPK AJK
Punjab Sindh including Balochistan Islamabad including Gilgit
FATA Baltistan
(Rupees in '000)
Province/Region
Punjab Sindh
KPK including FATA Balochistan Islamabad
AJK including
Gilgit–Baltistan
419,237,388 374,143,233 37,128,846 6,191,473 337.087 1,436,749 –

411,850,220 12,962,814 351,555,947 6,776,970 40,554,489 – –
4,741,216 171.325 – 4,569,891 – – –
1,676,862 – – – 1,676,862 – –
15,574,363 1,180,640 – 2,287,606 – 12,106,117 –
281.068 62.557 – – – – 218.511
Total 853,361,117 388,520,569 388,684,793 19,825,940 42,568,438 13,542,866 218,511

45.2 Market Risk
Market Risk arises from changes in market rates such as Interest Rates, Foreign Exchange Rates, Equity Prices, credit spreads and/or commodity price
well as their correlations and volatilities resulting in a loss to earnings and capital. The Bank is exposed to market risk primarily through its trading
activities, which are centered in the Treasury and Foreign Exchange Group and the Capital Market Division. Market risk also arises from market-mak
facilitation of client business and proprietary positions in equities, fixed income and interest rate products and foreign exchange, which exposes bank to
interest rate risk, foreign exchange risk and equity price risk.
The Bank’s Market Risk Management structure consists of Risk Management & Portfolio Review Committee (RM&PRC) of the Board
Management Credit and Risk Committee, ALCO and independent Market Risk Management Division reporting directly to Group Head Risk
Management. Market Risk function works in close partnership with the business segments to identify and monitor market risks throughout the
and to define market risk policies and procedures. Market Risk seeks to facilitate efficient risk/return management decisions, reduce volatili
operating performance and provide transparency into the Bank’s market risk profile for senior management, the Board of Directors and regul
Market risk authority, including both approval of market risk limits and approval of market risks is vested in the ALCO.
In line with regulatory requirements, the Bank has clearly defined, in its Global Risk Management policy, the positions which shall
subject to market risk. The definition covers the accounting classifications as well as positions booked by different business groups under
“Available for Sale” category. The assets subject to trading book treatment are frequently, mostly on daily basis, valued and actively managed.
positions which does not fulfill the criteria of Trading book falls under the Banking Book and are treated as per SBP requirements.
ilgit
–
–
–
–
–
293.296
293.296
2,866 218,511
credit spreads and/or commodity prices as

ket risk primarily through its trading
rket risk also arises from market-making,
oreign exchange, which exposes bank to
ew Committee (RM&PRC) of the Board,

reporting directly to Group Head Risk
and monitor market risks throughout the Bank
management decisions, reduce volatility in
gement, the Board of Directors and regulators.
ted in the ALCO.
ment policy, the positions which shall be
oked by different business groups under
aily basis, valued and actively managed. The
ed as per SBP requirements.
The Bank measures and manages Market Risk by using different risk parameters with combinations of various limits. Board
approved Global Risk Management Policy provides guidelines for assuming controlled market risk, its monitoring and
management. The approved limits are compared with the numbers generated by the market risk management systems based
trading activity and the outstanding positions.
Besides conventional methods, the Bank also uses VaR (Value at Risk) technique for market risk assessment of positions ass
by its treasury and capital market groups. In-house based solutions are used for calculating mark to market value of positions
generating VaR (value at risk) and sensitivity numbers. Thresholds for different positions are established to compare the exp
losses at a given confidence level and over a specified time horizon.
A framework of stress testing, scenario analysis and reverse stress tests covering both banking and trading books as per SBP
guidelines is also in place. The results of the stress tests are reviewed by senior management and also reported to the SBP.
The Bank is also exposed to interest rate risk both in trading and banking books. Risk parameters along with the marked to m
values of government securities held by the Bank’s treasury are generated on daily basis. The risk parameters include duratio
PVBP, and VaR on individual security basis as well as on portfolio basis. These reports are presented to the senior managem
for review on a daily basis.
45.2.1 Balance sheet split by trading and banking books

2021 2020
Banking Trading Total Banking Trading Total
book book book book
(Rupees in '000)
Cash and balances with
treasury banks 164,613,179 - 164,613,179 122,180,839 -

Balances with other banks 18,830,310 - 18,830,310 24,030,328 -
Lendings to financial institutions 42,467,110 - 42,467,110 17,139,453 -
Investments 35,788,956 999,796,540 1,035,585,496 29,521,903 986,347,545
Advances 589,711,091 - 589,711,091 462,941,787 -
Fixed assets 57,327,871 - 57,327,871 58,027,904 -
Intangible assets 978.785 - 978.785 938.458 -
Other assets 60,954,606 - 60,954,606 56,334,253 -
970,671,908 999,796,540 1,970,468,448 771,114,925 986,347,545
45.2.2 Foreign Exchange Risk
Foreign exchange risk exposes the bank to changes in the values of current holdings and future cash flows denominated in currencies o
than home currency due to the exchange rate fluctuation and volatility. The types of instruments exposed to this risk include investmen
foreign branches, foreign currency-denominated loans, foreign currency-denominated deposits, future cash flows in foreign curre
arising from foreign exchange transactions, etc.
The core objective of foreign exchange risk management is to ensure the foreign exchange exposure of the Bank remain with
defined risk appetite and insulate bank against undue losses that may arise due to volatile movements in foreign exchange ra
interest rates.
Limit structure to manage Foreign exchange risk including gap limits on different tenors in major currencies are in p
to control risk. Bank’s net open position and Foreign Exchange Exposure Limit (FEEL) is monitored and reported on intra-d
and day end basis. Foreign exchange risk parameters including VaR is generated and monitored on daily basis. Stress testing
foreign exchange portfolio and its reporting to senior management and RM&PRC of the Board is a regular feature.
h combinations of various limits. Board
ed market risk, its monitoring and
market risk management systems based on the
market risk assessment of positions assumed

lating mark to market value of positions and
ions are established to compare the expected
h banking and trading books as per SBP

gement and also reported to the SBP.
k parameters along with the marked to market

asis. The risk parameters include duration,
rts are presented to the senior management
122,180,839
24,030,328
17,139,453
1,015,869,448
462,941,787
58,027,904
938.458
56,334,253
1,757,462,470
cash flows denominated in currencies other

s exposed to this risk include investments in
ts, future cash flows in foreign currencies
hange exposure of the Bank remain within

atile movements in foreign exchange rates or
rent tenors in major currencies are in place

EL) is monitored and reported on intra-day
monitored on daily basis. Stress testing of
the Board is a regular feature.
2021 2020
Foreign Foreign Off-balance Net foreign Foreign Foreign Off-balance Net
foreign
currency currency sheet currency currency currency sheet currency
assets liabilities items exposure assets liabilities items exposure
(Rupees in '000)
15,257,91
United States Dollar 33,031,553 55,915,494 (7,626,029) 44,103,967 54,985,985 10,749,737
2
Sri Lankan Rupees 676.927 – – 676.927 144.228 – –
Arab Emirates Dirham 197.995 97.575 – 100.420 – 248.645 39.598
Euro 3,077,040 7,312,669 4,217,347 (18.282) 2,433,944 6,576,870 4,143,526
Great Britain Pound Sterling 4,039,717 6,855,354 2,716,087 (99.550) 2,474,888 6,151,953 3,637,777
Japanese Yen – 783.686 823.221 39.535 22.226 20 22.007
Other currencies 1,409,312 271.732 (811.293) 326.287 323.737 – 47.086
42,432,544 71,236,510 22,203,27 (6,600,692) 49,502,990 67,963,473 18,639,731

4
2021 2020
Banking book Trading book Banking book Trading book (Rupees in '000)
Impact of 1% change in foreign exchange rates on
- Profit and loss account (66.007) – 1.792

- Other comprehensive income 117.543 – 106.202
45.2.3 Equity position Risk
Bank’s proprietary positions in the equity instruments exposes it to the equity price risk in its trading and banking books. Equity price risk is managed by
applying trading limit, scrip-wise and portfolio wise nominal limits. VaR analysis and stress testing of the equity portfolio are also performed and reporte
senior management on a daily basis. The stress test for equity price risk assesses the impact of the fall in the stock market index using certain assumptions
addition to this stress testing, historical scenario analysis on equities is also performed periodically as advised by the State Bank of Pakistan through
Guideline on Stress Testing.
2021 2020
AFS HFT AFS HFT
(Rupees in '000)
Impact of 5% change in equity prices on

- Other comprehensive income – 1,040,039 – 908,592
45.2.4 Yield / Interest Rate Risk in the Banking Book (IRRBB)-Basel II Specific
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- pricin
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.
The increase / (decrease) in earnings due to change in the interest rate is as follows:
2021 2020
Banking Book Trading Book Banking Book Trading Book (Rupees in '000)
Impact of 1% increase in interest rates on

- Profit and loss account (3,632,054) (4) (3,987,679)
- Other comprehensive income – (7,457,483) –
The Bank has classified Available for Sale investments as Trading in Basel-II.
(132.281)
144.228
(209.047)
600
(39.288)
44.214
370.823
179.249
1.792 –
106.202 –
ooks. Equity price risk is managed by

rtfolio are also performed and reported to
arket index using certain assumptions. In
e State Bank of Pakistan through
– 908,592
es, including changes in the shape of

contractual maturities or the repricing
based on the re-pricing or contractual
(3,987,679) 5,250,521
– (7,497,582)
45.2.5 Mismatch of Interest Rate Sensitive Assets and Liabilities
2021
Effective Exposed to Yield/ Interest risk
yield / Over 1 Over 3 Over 6 Over 1 Over 2

interest Upto 1
Tota l to 3 to 6 months to 1 to 2 to 3 to 5 to 10 Above
rate month months months year years years years years 10 years
(Rupees in '000)
On–balance sheet financial instruments Assets
Cash and balances with treasury banks – 0.11% 164,613,179 7,033,445 – 1,939,826 – 352,182 – 699,120 –
Balances with other banks 2.39% 18,830,310 7,345,038 2,000,000 – – 4,363,410 –
Lending to financial institutions Investments 8.30% 42,467,110 40,467,110 184,596,534 129,320,167 3,210,790 – 69,431,247
Advances 7.22% 1,035,585,4 452,671,333 21,002,108 5,442,647 – 2,245,303
Other assets 96 540,163,100 – – –
589,711,091 –
53,137,079
1,904,344,2 1,047,680,0 209,538,468 135,114,996 8,273,320 71,676,55

65 26 0
Liabilities
Bills payable Borrowings 5.02% 24,589,644 – – 76,884,401 – 53,887,609 – 4,615,742 – 5,701,961
Deposits and other accounts Other liabilities 3.42% 269,525,556 93,350,424 27,229,903 19,657,886 27,529,119 211,101
1,411,851,5 771,620,918 – – – –
27 –
67,485,536
1,773,452,2 864,971,342 104,114,304 73,545,49 32,144,861 5,913,062
63 5
On–balance sheet gap 130,892,002 182,708,684 105,424,164 61,569,50 (23,871,541) 65,763,48
1 8
FX options purchase 1,432,779 591,814 741,535 99,430 – –
Forward purchase of Government securities 5,098,200 5,098,200 – – 72,281 – 165,214 –
Cross Currency Swaps purchase 784,611 – – 31,472,430 22,348,898 14,019,626 –
Foreign exchange contracts purchase 119,831,839 51,990,885 –
127,147,429 57,680,899 32,213,965 22,520,60 14,184,840 –

9
FX options sale 1,432,779 591,814 741,535 99,430 – –
Forward sale of Government securities Cross – 784,611 – – – 72,281 – 165,214 –
Currency Swaps sale 97,547,207 – – 34,190,934 21,804,433 15,319,546 –
Foreign exchange contracts sale 26,232,294 –
99,764,597 26,824,108 34,932,469 21,976,14 15,484,760 –

4
Off–balance sheet gap 27,382,832 30,856,791 (2,718,504) 544.465 (1,299,920) –
Total Yield/Interest Risk Sensitivity Gap 213,565,475 102,705,660 62,113,96 (25,171,461) 65,763,48
6 8
Cumulative Yield/Interest Risk Sensitivity Gap 213,565,4 316,271,13 378,385,10 353,213,64 418,977,12
75 5 1 0 8
Sensitive Assets and Liabilities
2021
risk Non–interest
Over 6 Over 1 Over 2 Over 3 Over 5 bearing
financial
instruments
000)
– – – – – 157,579,734
– – – – – 8,494,144
– 69,431,247 – 54,078,471 – 37,596,845 – 68,245,970 – – 35,281,519
2,245,303 4,861,606 1,673,527 2,463,637 – 8,648,373 53,137,079
– – – – –
71,676,55 58,940,07 39,270,372 70,709,607 8,648,373 254,492,476

0 7
– 5,701,961 – 2,816,770 – 5,607,738 – 26,660,911 – 24,589,644

211,101 1,495,106 700,706 212,000 – –
– – – – – 563,194,788
– 67,485,536
5,913,062 4,311,876 6,308,444 26,872,911 – 655,269,968
65,763,48 54,628,20 32,961,928 43,836,696 8,648,373 (400,777,49

8 1 2)
– – – – – –
– – 547,116 – – – –
– – – – – –
– – – – –
– 547.116 – – – –
– – – – – –
– – 547,116 – – – –
– – – – – –
– – – – –
– 547.116 – – – –
– – – – – –
65,763,48 54,628,20 32,961,928 43,836,696 8,648,373

8 1
418,977,12 473,605,32 506,567,25 550,403,95 559,052,32
8 9 7 3 6
2020
Exposed to Yield/ Interest risk
Effective
yield / Total Upto 1 Over 1
to 3
rate month months
(Rupees in '000)
On-balance sheet financial instruments
Assets
Cash and balances with treasury banks – 122,180,839 6,810,656 –
Balances with other banks 0.21% 24,030,328 2,556,166 799.172
Lending to financial institutions 7.27% 17,139,453 17,139,453 –
Investments 10.77% 1,015,869,44 179,084,50 415,139,293
Advances 9.34% 462,941,7878 5
432,461,75 6,982,362
Other assets 46,267,752 6 – –
1,688,429,60 638,052,53 422,920,827
7 6
Liabilities
Bills payable 23,980,692 – –
Borrowings 5.30% 164,001,533 121,266,74 8,214,674
Deposits and other accounts 7
4.50% 1,289,502,30 730,683,03 21,243,238
Other liabilities 60,731,1564 3 – –
1,538,215,685 851,949,780 29,457,912 18,675,110 32,357,774 10,381
On–balance sheet gap 150,213,922 (213,897,244 393,462,915

)
FX options purchase 182.800 122.370 60.430
Outright purchase of Government Securities 11,089,775 11,089,775 –
Cross currency swaps – purchase 1,975,311 339.938 –
Interest Rate Swaps – purchase – – –
Foreign exchange contracts purchase 168,432,858 69,994,741 64,922,148
181,680,744 81,546,824 64,982,578
FX options sale 182.800 122.370 60.430

Forward sale of Government securities – – –
Cross Currency Swaps – sale 2,130,472 340.109 –
Foreign exchange contracts sale 149,987,717 52,355,290 60,513,836
152,300,989 52,817,769 60,574,266
Off–balance sheet gap 29,379,755 28,729,055 4,408,312

Total Yield/Interest Risk Sensitivity Gap (185,168,189 397,871,227
)
Cumulative Yield/Interest Risk Sensitivity Gap (185,168,189 212,703,038
)
interest
2020
sed to Yield/ Interest risk
Non-interest
Over 3 Over 6 Over 1 Over 2 Over 3 Over 5 Abov bearing
to 6 months to 1 to 2 to 3 to 5 to 10 e financial
months year years years years years 10 years instruments
(Rupees in '000)
– – – – – – – 115,370,183
– – – – –
20,674,990
– – – – – – – –
160,598,685 61,659,011 22,916,296 41,949,392 30,794,310 71,118,956 –
32,609,000
3,401,653 1,931,754 3,619,904 1,742,088 4,803,725 1,859,527 6,139,018 –
– – – – – – – 46,267,752
164,000,338 63,590,765 26,536,200 43,691,480 35,598,035 72,978,483 6,139,018 214,921,925
– – – – – – – 23,980,692
5,044,522 1,813,871 8,382,537 2,571,133 4,831,690 11,876,359 – –
13,630,588 30,543,903 1,998,833 115.810 1,689,628 212.000 – 489,385,271
– – – – – – – 60,731,156
,912 18,675,110 32,357,774 10,381,370 2,686,943 6,521,318 12,088,359 – 574,097,119
145,325,228 31,232,991 16,154,830 41,004,537 29,076,717 60,890,124 6,139,018 (359,175,19

4)
– – – – – – – –
– – – – – – – –
210.505 87.318 547.272 – 790.278 – – –
– – – – – – – –
24,944,134 8,571,835 – – – – – –
25,154,639 8,659,153 547.272 – 790.278 – – –
– – – – – – – –
– – – – – – – –
210.505 242.308 547.272 – 790.278 – – –
23,089,616 14,028,975 – – – – – –
23,300,121 14,271,283 547.272 – 790.278 – – –
1,854,518 (5,612,130) – – – – – –
147,179,746 25,620,861 16,154,830 41,004,537 29,076,717 60,890,124 6,139,018
359,882,784 385,503,645 401,658,475 442,663,012 471,739,729 532,629,853 538,768,8

71
2021 2020 2021
(Rupees in '000) (Rupee
1,757,462,470
Reconciliation to total assets 58,027,904
Balance as per balance sheet 1,970,468,448 938,458
10,066,501
Less: Non financial assets 69,032,863
1,688,429,607
Fixed assets Intangible assets Other assets 57,327,871
978,785
7,817,527
66,124,183
Total financial assets 1,904,344,265
45.3 Operational Risk

Operational risk is the risk of loss resulting from inadequate or failed internal processes, people, and systems or from external events. This definit
The Bank’s operational risk management framework, as laid down in the Global Risk Management Policy, duly approved by BOD, is f
to evolve in the light of organizational learning and the future needs of the Bank. Operational loss events are reviewed and appropriate
procedures with respect to design and operative effectiveness.
Operational Risk Management helps the Bank understand risks and improve mitigating controls so as to minimize operational risks tha
strengthen its risk function, policies and procedures to facilitate its operations and improve quality of assets to safeguard interest of dep
45.3.1 Operational Risk-Disclosures Basel II Specific

Currently, the bank is reporting operational risk capital charge under Basic Indicator Approach (BIA). The Bank took a number of initiative with
database and Risk & Control Self Assessments (ROSA) to manage its operational risk effectively.
In accordance with the Operational Risk Management (OR) regulations, policy and framework, a database covering operational risk ev
features and a better workflow management. This new software has further augmented bank’s capacity to capture and report operationa
and management reports. Periodical updates on Operational Risk events are presented to senior management and the Risk Managemen
Notes To The Unconsolidated Financial Statements
45.4 Liquidity Risk
Liquidity represents the ability to fund assets and meet obligations as they become due. The Bank understands that liquidity does not come for
free, and surplus liquidity has an opportunity cost which needs to be recognized. Liquidity risk is a risk of not being able to obtain funds at a reasonable
price within a reasonable time period to meet obligations as they become due. Liquidity is essential to the ability to operate financial services businesses
and, therefore, the ability to maintain surplus levels of liquidity through economic cycles is crucial. Particularly during periods of adverse conditions,
liquidity management is among the most important activities that the Bank conducts during both normal and stress periods. The Bank recognizes that
liquidity risk can arise from the Bank’s activities and can be grouped into three categories:
- Inflows/Outflows from on-balance sheet items (other than marketable securities and wholesale borrowings) and off-balance sheet items;
- Marketability of trading securities; and
- Capacity to borrow from the wholesale markets for funding as well as trading activities.
Liquidity Management
The Asset Liability Committee of the bank has the responsibility for the formulation of overall strategy and oversight of the Asset Liability Management
function. Board has approved a comprehensive Liquidity Risk Policy (part of Risk Management Policy), which stipulates policies regarding maintenance of
various ratios, funding preferences, and evaluation of Banks’ liquidity under normal and stress scenarios. A framework to assess the maturity profile
of non-contractual assets and liabilities is in place to supplement the liquidity management. Bank’s comprehensive liquidity management framework assists
it to closely watch the liquidity position through monitoring of early warning indicators and stress testing, to ensure effective and timely decision making.
The Bank’s liquidity risk management framework is designed to identify measure and manage in a timely manner the liquidity risk position of the Bank.
The underlying policies and procedures include: Global Risk Management policy, Global Treasury Policy, Investment policy, Contingency Funding Plan,
Liquidity Strategy and Limit Structure which are reviewed and approved regularly by the senior management / Board members. Moreover; the Bank also
prepares a ‘Contingency Funding Plan’ (CFP) to address liquidity issues in time of stress/crises situation containing early warning indicators to
preempt unforeseen liquidity crises. The Bank conducts Liquidity Risk Analysis on regular basis as well as Maturity of gaps are also reviewed in order to
ensure diversification in terms of tenors. MCB liquidity risk framework envisages to project the Bank’s funding position during temporary and
long-term liquidity changes, including those caused by liability erosion and explicitly identifying quantifying and ranking all sources of funding
preferences, such as reducing assets, modifying or increasing liability structure; and using other alternatives for controlling statement of financial position
changes. The Bank performs regular liquidity stress tests as part of its liquidity monitoring activities. The purpose of the liquidity stress tests is intended to
ensure sufficient liquidity for the Bank under both idiosyncratic and systemic market stress conditions. The Bank’s liquidity risk management approach
involves intraday liquidity management, managing funding sources and evaluation of structural imbalances in balance sheet structure.
In view of the relaxation granted by SBP for deferral of principal and markup and for rescheduling / restructuring of loans there will be an impact on the
maturity profile of the Bank. The Asset and Liability Committee (ALCO) of the Bank is monitoring the liquidity position and the Bank is confident that the
liquidity buffer currently maintained is sufficient to cater to any adverse movement in the cash flow maturity profile.
Intraday Liquidity Management
Intraday liquidity management is about managing the daily payments and cash flows. Bank has policies to ensure that sufficient cash is maintained during
the day to make payments through local payment system. The policy of the Bank is to maintain adequate liquidity at all times, in all geographical locations
and for all currencies and hence to be in a position, in the normal course of business, to meet obligations, repay depositors and fulfill commitments.
Managing Funding Sources
Managing funding sources, as per policy the Bank maintain a portfolio of marketable securities that can either be sold outright or sold through a
repurchase agreement to generate cash flows for meeting unexpected liquidity requirement. As a part of liquidity management the Bank maintains
borrowing relationships to ensure the continued access to diverse market of funding sources. The Bank’s sound credit rating together with excellent market
reputation has enabled the Bank to secure ample call lines with local and foreign banks. The level of liquidity reserves as per regulatory requirements also
mitigates risks. The Bank’s investment in marketable securities is much higher than the Statutory Liquidity Requirements.
Managing funding sources, as per policy the Bank maintain a portfolio of marketable securities that can either be sold outright or sold through a
repurchase agreement to generate cash flows for meeting unexpected liquidity requirement. As a part of liquidity management the Bank maintains
borrowing relationships to ensure the continued access to diverse market of funding sources. The Bank’s sound credit rating together with excellent market
reputation has enabled the Bank to secure ample call lines with local and foreign banks. The level of liquidity reserves as per regulatory requirements also
mitigates risks. The Bank’s investment in marketable securities is much higher than the Statutory Liquidity Requirements.
308
2021 2020
(Rupees in '000)
Reconciliation to total assets Balance as per balance
sheet Less: Non financial liabilities
Other liabilities Deferred tax liability 1,796,061,040 1,567,360,515
Total financial liabilities
21,879,353 22,169,672
729,424 6,975,158
22,608,777 29,144,830
1,773,452,263 1,538,215,685
people, and systems or from external events. This definition includes legal risks but excludes strategic and reputational risks.
al Risk Management Policy, duly approved by BOD, is flexible enough to implement in stages and permits the overall risk management approach
k. Operational loss events are reviewed and appropriate corrective actions taken on an ongoing basis, including measures to improve control
tigating controls so as to minimize operational risks that are inherent in almost all areas of the Bank. Going forward, the Bank will further
nd improve quality of assets to safeguard interest of depositors.
roach (BIA). The Bank took a number of initiative with respect to operational risk management like using Key Risk Indicators (KRIs), Loss events
ectively.
and framework, a database covering operational risk events is being maintained using a state of the art software solution, which has enhanced
mented bank’s capacity to capture and report operational risk events and KRIs. The software is also capable of generating periodical regulatory
sented to senior management and the Risk Management and Portfolio Review Committee of the Board.
nts
ank understands that liquidity does not come for
of not being able to obtain funds at a reasonable
he ability to operate financial services businesses
ticularly during periods of adverse conditions,
l and stress periods. The Bank recognizes that
borrowings) and off-balance sheet items;
and oversight of the Asset Liability Management

), which stipulates policies regarding maintenance of
cenarios. A framework to assess the maturity profile
mprehensive liquidity management framework assists
ng, to ensure effective and timely decision making.
ly manner the liquidity risk position of the Bank.
cy, Investment policy, Contingency Funding Plan,
ement / Board members. Moreover; the Bank also
uation containing early warning indicators to
l as Maturity of gaps are also reviewed in order to
Bank’s funding position during temporary and
ntifying and ranking all sources of funding
ives for controlling statement of financial position
he purpose of the liquidity stress tests is intended to
The Bank’s liquidity risk management approach
lances in balance sheet structure.
tructuring of loans there will be an impact on the
liquidity position and the Bank is confident that the
flow maturity profile.
to ensure that sufficient cash is maintained during

e liquidity at all times, in all geographical locations
s, repay depositors and fulfill commitments.
that can either be sold outright or sold through a

t of liquidity management the Bank maintains
s sound credit rating together with excellent market
uidity reserves as per regulatory requirements also
y Liquidity Requirements.
that can either be sold outright or sold through a
t of liquidity management the Bank maintains
s sound credit rating together with excellent market
uidity reserves as per regulatory requirements also
y Liquidity Requirements.
45.4.1 Maturities of Assets and Liabilities – based on contractual maturity of the assets and liabilities of the Bank
2021
Upto 1 Over 1 to Over 7 to Over 14 days Over 1 or Over 2 to Over 3 to Over 6 to Over 9 Over 1 to Over 2 to
Total day 7 days 14 days to 1 month 2 months 3 months 6 months 9 months months 2 years 3 years
to 1 year
(Rupees in '000)
Assets
treasury banks 164,613,179 164,613,179 – – – – – –

Balances with other banks 18,830,310 8,479,616 3,618,039 882.436 2,859,091 – 1,939,826 352.182
Lending to financial institutions 42,467,110 – 38,967,110 1,500,000 – 2,000,000 – –
Investments 1,035,585,4 1,128,473 1,910,677 3,251,786 161,304,474 20,746,287 91,714,919 56,744,509
Advances 96
589,711,091 93,634,281 26,981,914 17,982,637 54,776,059 36,344,294 67,216,112 59,118,178
Fixed assets 57,327,871 8.429 50.569 58.997 229.569 347.223 346.910 1,025,704
Intangible assets 978.785 2.074 12.441 14.514 33.175 62.203 62.203 186.609
Other assets 60,954,606 253.571 1,770,106 4,486,335 7,877,570 13,926,658 9,444,232 2,280,659
1,970,468,4 268,119,623 73,310,856 28,176,705 227,079,938 73,426,665 170,724,202 119,707,841
48
Liabilities
Bills payable 24,589,644 819.654 4,917,929 5,737,584 13,114,477 – – –
Borrowings 269,525,556 17,868,987 73,678,410 1,132,836 670.191 14,626,692 62,257,709 53,887,609

Deposits and other accounts 1,411,851,5 1,313,023,14 5,560,757 4,888,942 11,342,858 6,906,515 20,323,388 19,657,886
Deferred tax liabilities – net 27
729.424 9
1.462 (17.491) (26.260) (197.446) (132.467) (172.871) (392.258)
Other liabilities 89,364,889 13,222,676 3,018,501 2,641,074 7,543,912 6,766,989 4,970,156 3,041,626
1,796,061,0 1,344,935,92 87,158,106 14,374,176 32,473,992 28,167,729 87,378,382 76,194,863
40 8
Net assets 174,407,408 (1,076,816,3 (13,847,250) 13,802,529 194,605,946 45,258,936 83,345,820 43,512,978
05)
Share capital 11,850,600
Reserves 84,602,024
assets – net 14,271,517
Unappropriated profit 63,683,267
174,407,408
Over 2 to Over 3 to Over 5
3 years 5 years years
00)
– – – – – –
– 699.120 – – – –
– – – – – –
5,928,230 100,689,851 243,369,263 59,193,297 93,244,539 196,359,191
18,211,823 28,895,790 43,595,236 36,304,713 46,309,189 60,340,865
1,012,706 1,002,518 3,386,486 3,357,964 3,296,892 43,203,904
186.609 186.609 232.348 – – –
2,726,778 737.471 6,670,206 4,777,059 6,003,961 –
28,066,146 132,211,359 297,253,539 103,633,033 148,854,581 299,903,960
– – – – – –
535.632 4,080,110 5,701,961 2,816,770 5,607,738 26,660,911

13,938,237 13,590,882 211.101 1,495,106 700.706 212.000
(354.339) (387.932) 277.582 (254.654) 1,647,263 738.835
13,999,136 3,170,038 8,012,667 5,773,692 11,762,756 5,441,666
28,118,666 20,453,098 14,203,311 9,830,914 19,718,463 33,053,412
(52.520) 111,758,261 283,050,228 93,802,119 129,136,118 266,850,548

2020
Upto 1 Over 1 to Over 7 to Over 14 days Over 1 or
Total day 7 days 14 days to 1 month 2 months
(Rupees in '000)
Assets
–
–
–
91,757,770
5,567,948
54,601
13,857
7,413,870
– 799,031
–
72,188,252
21,964,456
218,707
31,674
6,023,597
–
–
–
159,114,73
8
20,382,678
327,908
59,389
9,571,753
– 799,031
–
179,247,66
3
31,484,973
327,908
59,389
9,356,338
–
–
–
114,811,19
8
53,402,604
983,725
178,167
1,992,478
–
–
–
60,862,579
34,512,637
983,725
178,167
579,658
–
–
– 5,059,417
28,348,910
983,725
178,167
83,001
–
–
–
28,051,162
51,224,268
3,528,643
225,791
2,260,624
–
–
–
75,507,721
36,344,592
3,562,702
– 6,419,673
–
–
–
36,666,731
56,301,425
4,097,577
–
10,837,500
–
–
–
190,909,68
7
37,691,881
42,904,084
–
–
122,180,83
9
24,030,328
17,139,453
1,015,869,4
48
462,941,78
7
58,027,904
938,458
56,334,253
122,180,83
9
21,793,041
1,864,192
1,032,330
69,434,527
7,799
1,979
115,353
– 639,225
15,275,261
660,200
16,280,888
46,800
11,878
1,680,408

Balances with other banks Lending to financial institutions Investments
Advances Fixed assets
Intangible assets
Other assets
Liabilities 1,757,462,470 216,430,060 34,594,660 104,808,046 101,225,717 189,456,466 221,275,302 171,368,172
Bills payable Borrowings 1,567,360,515 1,239,732,077 101,237,272 15,778,202 31,032,561 22,816,572 17,827,050 31,500,772
Deferred tax liabilities – net
Other liabilities
– 5,044,522
13,630,588
(607,946)
13,433,608
– 924,633
17,258,524
25,284
2,147,942
– 889,239
13,285,379
(497,412)
2,087,801
–
8,382,537
1,998,833
655,206
3,880,245
–
2,571,133
115,810
1,911,154
7,956,617
–
4,831,690
1,689,628
2,455,143
15,387,83
2
–
11,876,35
9
212,000
3,477,402
3,913,030
23,980,692
164,001,53
3
1,289,502,3
04
6,975,158
82,900,828
799,357
27,145,780
1,199,768,2
03
25,551
11,993,186
4,796,138
91,245,233
3,244,480
(10,573)
1,961,994
5,595,495
1,537,110
5,172,564
(23,334)
3,496,367
12,789,702
1,338,623
11,883,056
(125,929)
5,147,109
– 6,239,388
11,137,355
(93,436)
5,533,265
– 1,975,286
10,105,884
(215,952)
5,961,832
Net assets 190,101,955 (1,023,302,017) (66,642,612) 89,029,844 70,193,156 166,639,894 203,448,252 139,867,400 76,76
Reserves 80,696,335
assets – net 27,720,418
190,101,955
Over 2 to Over 3 to Over 6 to Over 9 Over 1 to Over 2 to Over 3 to Over 5
3 months 6 months 9 months months 2 years 3 years 5 years years
to 1 year
ees in '000)
456,466 221,275,302 171,368,172 97,116,766 34,653,220 85,290,488 121,834,688 107,903,233 271,505,652
816,572 17,827,050 31,500,772 20,356,383 15,765,007 14,916,821 12,554,714 24,364,293 19,478,791
4 203,448,252 139,867,400 76,760,383 18,888,213 70,373,667 109,279,974 83,538,940 252,026,861
45.4.2 Maturities of assets and liabilities - based on expected maturities of the assets and liabilities of the Bank
2021
Upto 1 Over 1 to Over 3 to Over 6 Over 1 to Over 2 to Over 3 t
Total month 3 months 6 months months to 2 years 3 years 5
1 year
(Rupees in '000)
Assets
treasury banks 164,613,179 164,613,179 – – –

Balances with other banks 18,830,310 15,839,182 1,939,826 352.182 699.120
Lending to financial institutions 42,467,110 40,467,110 2,000,000 – –
Investments 1,035,585,496 167,582,777 112,452,542 56,744,509 106,597,213
Advances 589,711,091 104,876,503 65,335,048 40,389,661 42,804,053
Fixed assets 57,327,871 347.563 694.134 1,025,704 2,015,224
Intangible assets 978.785 62.203 124.406 186.609 373.219
Other assets 60,954,606 14,387,582 23,370,890 2,280,659 3,464,249
1,970,468,448 508,176,099 205,916,846 100,979,324 155,953,078
Liabilities
Bills payable 24,589,644 24,589,644 – – –
Borrowings 269,525,556 93,350,424 76,884,401 53,887,609 4,615,742
Deposits and other accounts 1,411,851,527 89,509,734 80,961,172 112,618,476 37,339,238
Deferred tax liabilities – net 729.424 (239.735) (305.337) (392.258) (742.272)
Other liabilities 89,364,889 26,426,163 11,737,145 3,041,626 17,169,174
1,796,061,040 233,636,230 169,277,381 169,155,453 58,381,882

Net assets 174,407,408 274,539,869 36,639,465 (68,176,129) 97,571,196
Reserves 84,602,024
Surplus on revaluation of assets – net 14,271,517
174,407,408
k
2021
er 1 to Over 2 to Over 3 to Over 5 to Above
2 years 3 years 5 years 10 years 10 years
year
es in '000)
– – – – –
– – – – –
– – – – –
243,329,393 59,153,428 92,720,144 181,489,930 15,515,560
86,887,301 81,446,869 92,269,889 63,560,997 12,140,770
3,386,486 3,357,964 3,258,966 7,023,734 36,218,096
232.348 – – – –
6,670,206 4,777,059 6,003,961 – –
340,505,734 148,735,320 194,252,960 252,074,661 63,874,426
– – – – –
5,701,961 2,816,770 5,607,738 26,660,911 –
326,852,299 328,136,304 327,341,905 109,092,399 –
277.582 (254.654) 1,647,263 1,317,464 (578.629)
8,012,667 5,773,692 11,762,756 4,662,839 778.827
340,844,509 336,472,112 346,359,662 141,733,613 200.198

(338.775) (187,736,792) (152,106,702) 110,341,048 63,674,228
2020
Upto 1 Over 1 to Over 3 to Over 6 Over 1 to
Total month 3 months 6 months months to 2 yea
1 year
(Rupees in '000)
Assets
treasury banks 122,180,839 122,180,839 - -
Balances with other banks 24,030,328 23,231,297 799.031 -

Lending to financial institutions 17,139,453 17,139,453 - -
Investments 1,015,869,448 165,626,376 338,357,141 114,805,937
Advances 462,941,787 69,597,045 32,217,300 27,668,757
Fixed assets 58,027,904 327.909 655.816 983.725
Intangible assets 938.458 59.388 118.778 178.167
Other assets 56,334,253 15,233,227 18,917,932 2,002,637
1,757,462,470 413,395,534 391,065,998 145,639,223
Liabilities
Bills payable 23,980,692 23,980,692 - -
Borrowings 164,001,533 121,266,747 8,214,674 5,044,522
Deposits and other accounts 1,289,502,304 72,039,661 48,536,715 57,946,390
Deferred tax liabilities 6,975,158 (132.904) (309.434) (608.257)
Other liabilities 82,900,828 22,598,657 11,491,122 13,437,582
1,567,360,515 239,752,853 67,933,077 75,820,237
Net assets 190,101,955 173,642,681 323,132,921 69,818,986
Reserves 80,696,335
Surplus on revaluation of assets - net 27,720,418
190,101,955
Liquidity Gap Reporting
When an asset or liability does not have any contractual maturity date, the period in which these are assumed to mature has been taken
behavioral study using regression analysis technique to ascertain the maturity of its non- contractual assets and liabilities. Core and non
behavioral study. Non Core part is placed among the short term maturity buckets i.e. up to 1 Year based on the model results, whereas
decision by the ALCO. Following percentages are used to distribute the core assets and liabilities among longer term buckets:
Over 3 to 5 Years
Over 5 to 10 Years
Over 1 to 2 Years
Over 2 to 3 Years
30% 30% 30% 10%
45.5 Derivative Risk
Most business clients have either interest rate exposures arising from debt financing or currency exposures arising out of commercial
transactions from import and export of goods. Businesses face the risk of sudden movements in interest rates or foreign exchange rates that may
adversely affect their profitability. The Bank provides solutions to this problem through its derivatives desk in major types of derivative instrume
i.e.; forwards, futures, swaps and options. As an Authorized Derivative Dealer (ADD), the Bank is an active participant in Derivative market and
flexibility in providing a broad range of derivatives products covering both hedging and market making to satisfy customers’ needs. As an ADD,
bank offers derivative products which are permitted under the Financial Derivative Business Regulations (FDBR) or as permitted by the Sta
Bank of Pakistan. Before executing Derivative transactions, the bank ensures that the clients understand the risk and reward associated with the
derivative being offered. Derivative transactions are executed with appropriate clients only.
Risk management activities take place at the following different levels.

Strategic Level:
By senior management Assets and Liabilities Committee (ALCO), Management Credit and Risk Committee (MC&R
and the Board of Directors to institute a risk management framework and to ensure provision of all resources and support req
for effective risk management on Bank-wide basis. The Board provides the overall limits/thresholds for derivatives business.
Macro Level:
By Treasury and FX Group and Risk Management Group, responsible for policy formulation, procedure development and
implementation, monitoring and reporting.
Micro Level:
Treasury Derivatives and Structured Product Desk where risks are actually created and Treasury Operations for
settlements of the transactions.
Derivative Risk Management caters the following risks:-

Market Risk arises from changes in market rates such as Interest Rates, Foreign Exchange Rates, Equity Prices, credit spread
and/or commodity prices as well as their correlations and volatilities resulting in a loss to earnings and capital. In line with S
regulatory guidelines, Bank hedges back- to-back all option transactions with other financial institutions. Bank minimizes th
exchange rate risk on its Cross Currency Swap Portfolio by hedging the exposure in interbank market. Bank also manages in
rate risk on its Interest Rate Derivatives and Cross Currency Swaps through various sensitivity limits approved by ALCO. M
to market positions and sensitivity of the derivatives transactions are monitored on regular basis. All individual deals are app
at the appropriate level of authority after analyzing the risk and benefits associated with the deals.
Credit risk is a probable risk of loss resulting from customer’s inability to meet contractual obligation that may have adverse
impact on Bank’s profitability. Bank manages the risk by setting policies and limits for counterparty based on a pre-defined
criteria linked with financial health of the customer. The exposure of each counterparty is monitored by Risk Management
Function of the Bank on daily basis.
Considering small Derivative portfolio, bank is not exposed to any liquidity risk. However; Bank manages its liquidi
risk through Bank’s liquidity risk framework which is defined in relevant Liquidity Risk Section.
Bank has adequate system and controls for smooth execution of derivative transactions. Transactions are executed in line wi
well defined accounting and operational aspects to mitigate the operational risk. Policies and control functions are regularly
reviewed on periodic basis.
2020
Over 6 Over 1 to Over 2 to Over 3 to Over 5 to Above
months months to 2 years 3 years 5 years 10 years 10 years
1 year
(Rupees in '000)
- - - - - -
- - - - - -
- - - - - -
65,897,443 28,013,808 75,470,367 36,564,210 175,676,689 15,457,477
49,069,203 79,509,554 66,966,890 82,943,687 46,065,324 8,904,027
1,967,449 3,528,643 3,562,702 4,046,673 6,266,060 36,688,927
356.334 225.791 - - - -
662.660 2,260,624 6,419,673 10,837,500 - -
117,953,089 113,538,420 152,419,632 134,392,070 228,008,073 61,050,431
- - - - - -
1,813,871 8,382,537 2,571,133 4,831,690 11,876,359 -
56,649,804 317,092,872 315,209,849 316,783,667 105,243,346 -
(473.200) 654.883 1,910,831 2,432,012 1,711,329 1,789,898
4,235,743 3,880,245 7,956,617 15,387,832 3,451,697 461.333
62,226,218 330,010,537 327,648,430 339,435,201 122,282,731 2,251,231
55,726,871 (216,472,117) (175,228,798) (205,043,131) 105,725,342 58,799,200
sumed to mature has been taken as the expected date of maturity. Bank regularly conducts an objective and systematic
sets and liabilities. Core and non-core parts of the non-contractual assets and liabilities are segregated through the
d on the model results, whereas core part is distributed among the longer terms buckets based on the discussion and
ng longer term buckets:
10%
es arising out of commercial
oreign exchange rates that may
ajor types of derivative instruments
icipant in Derivative market and has
y customers’ needs. As an ADD, the
R) or as permitted by the State
k and reward associated with the
t and Risk Committee (MC&RC)

n of all resources and support required
esholds for derivatives business.
n, procedure development and
nd Treasury Operations for
ates, Equity Prices, credit spreads

rnings and capital. In line with SBP’s
institutions. Bank minimizes the
nk market. Bank also manages interest
ity limits approved by ALCO. Marked
asis. All individual deals are approved
deals.
obligation that may have adverse

nterparty based on a pre-defined
onitored by Risk Management
wever; Bank manages its liquidity

ction.
nsactions are executed in line with

d control functions are regularly
313
The Bank uses a third party’s Super Derivative System which provides front end sales and structuring capabilities, end to end valuation solutions, risk
management systems, back end processing and provides analytical tools to measure various risk exposures and carry out sensitivity analysis.
The goal of asset/liability management (ALM) is to properly manage the risk related to changes in interest rates, the
of balance sheet assets and liabilities, the holding of foreign currencies, and the use of derivatives. Due to thin liquidity in
derivative market, interest rate derivatives are not actively used to manage/alter the interest rate risk profile of the bank.
46 EVENTS AFTER THE REPORTING DATE

The Board of Directors in its meeting held on February 10, 2022 has announced a final cash dividend in respect of the year ended December 31, 2021 of R
5.00 per share (2020: Rs. 15.00 per share). These unconsolidated financial statements for the year ended December 31, 2021 do not include the effect of t
appropriations which will be accounted for subsequent to the year end.
47 GENERAL
Comparative information has been rearranged wherever necessary for better presentation of the financial statements. There have been no significa
reclassifications during the year.
Figures have been rounded off to the nearest thousand of rupees unless otherwise stated.
48 DATE OF AUTHORIZATION FOR ISSUE
These unconsolidated financial statements were authorized for issue by the Board of Directors of the Bank in their meeting held on February 10, 2022.

314
apabilities, end to end valuation solutions, risk
res and carry out sensitivity analysis.
e risk related to changes in interest rates, the mix

e use of derivatives. Due to thin liquidity in the
the interest rate risk profile of the bank.
respect of the year ended December 31, 2021 of Rs.

d December 31, 2021 do not include the effect of these
financial statements. There have been no significant
nk in their meeting held on February 10, 2022.
Shahzad Hussain
Director
Name of individuals/ partners/ directors Outstanding liabilities at beginning of the year
Sr. Name and address of the Name NIC No. Principal Interest / mark
Father's /Husband's name up
No. borrower
Domestic
1 ACMA International Muhammad Ashraf 34101-4531402-1 Muhammad Abdullah –
G.T. Road, Near Jamia Kamboh 34101-8974256-9 Muhammad Abdullah
Masjid Umar-e-Farooq, Muhammad Ilyas Kamboh 34101-0681710-9 Muhammad Abdullah
Behind Bhutta Centre, Gujranwala Muhammad Shabbir Ahmad
2 Muhammad Arshad Vanike Chowk, Muhammad Arshad 34301-1776599-3 Khadim Hussain –

Tehsil & District Hafizabad
3 Younas Commission Shop Muhammad Younas 34302-1221429-5 Muhammad Sharif –

Mohallah Masoom Gunj, Kasesay,
Jalalpur Bhattian, District Hafizabad
4 Ittehad Commission Shop Muhammad Afzal 34102-0433291-7 Ali Hussan –

New Ghallah Mandi, Kamokey, Distt
Gujranwala
5 Hamid Sultan Corporation Umar Daraz 34302-1201509-7 Sultan Ahmad –

Vanikey Road, Jalalpur Bhattian,
District Hafizabad
6 Malik Cloth House Chak No.266/RB, Khadim Hussain 33104-4312180-3 Mubarak Ali –
Khurrianwala Faisalabad
7 Akhlaq & Co Akhlaq Ahmed 33100-0898836-9 Mushtaq Ahmed –

House No.627-B Peoples Colony No.01,
Faisalabad
8 Muhammad Younas House No.P-14, Muhammad Younas 33100-8585636-3 Abdul Qayum –

Karim Block Doctor Street Muslim Town
No.01, Faisalabad
9 GN Fabrics Niaz Ahmed 33100-4686338-9 Ghulam Nabi –

7- Chak Saim Nala Haroon Ahmed 33100-8305200-3 Niaz Ahmed
Sargodha Road Rohina Niaz 33100-1949889-8 Niaz Ahmed
Faisalabad
10 Al Meezan Steel Mills House # G-40, Imran Ahmed Khan 38302-1216171-1 Abdul Razzaq Khan –
Sabzi Mandi, Mohallah Alam Khel,
Mianwali
11 Hassan Oil Mills Muhammad Azhar Malik 38201-1224648-9 Zafar Ullah Malik –
House # L-8, Block # 8, L-type, Jahurabad,
Tehsil & District Khushab
(Rupees in '000)
liabilities at beginning of the year Principal Interest/ Other Fin.
Written off Markup Reliefs
Others Total Written off/ Provided Total
waived
– 1.503 82 1.585 – 1.503 82 1.585
– 600 57 657 – 600 57 657
– 1.165 74 1.239 – 1.165 74 1.239
– 1.191 117 1.308 – 1.191 117 1.308
– 2.758 72 2.830 – 2.758 72 2.830
– 579 30 609 – 579 30 609
– 2.046 49 2.095 – 2.046 49 2.095
– 2.188 117 2.305 – 2.188 117 2.305
– 3.496 – 3.496 – 3.496 – 3.496
– 1.348 67 1.415 – 1.348 67 1.415
– 1.002 31 1.033 – 1.002 31 1.033

No. borrower
Domestic
12 Sheikh Corporation House # 90/A, Shahid Rasheed 36302-7235834-5 Abdul Rasheed –

Mohallah Kotla Tolay Khan Multan
13 Friends Iron Store Colony road near Shah Muhammad Shah 36602-4632499-5 Syed Sattar Shah –
Shama Cinema Tehsil Mailsi & District
Vehari
14 Kaswa Agro Chemicals Barkat Ahmad 32102-8444410-5 Mian Rasheed Ahmad –

294-C Khayaban-E- Nudrat Qasim Shah 32102-0622620-8 W/o Barkat Ahmad
Sarwar, D.G Khan, Tehsil & District
D.G Khan
15 Advent Marketing & Company Barkat Ahmad 32102-8444410-5 Mian Rasheed Ahmad –
294-C Khayaban-E- Sarwar, D.G Khan,
Tehsil & District D.G Khan
16 Manzoor Model Factory Hafiz Manzoor Ahmad 31301-0144282-1 Hafiz Yar Muhammad –
Basti Rahim Post Office Muhammad Akar 31303-2796510-9 Hafiz Manzoor Ahmed
Sehja Tehsil Khanpur Muhammad Anwar 31303-3012436-5 Hafiz Manzoor Ahmed
District Rahim Yar Khan
17 Muhammad Najamul Hassan Siddiqui Muhammad Najamul Hassan 42401-2004370-3 Muhammad Abdul Qayyum –
House No. 6, Nazir Apartment, New Town, Siddiqui
Chandni Chowk, Karachi
18 Farooq Optical Co. Chaudhry Muhammad 35201-4494526-7 Chaudhry Muhammad –

2nd Floor, Musarat Plaza Farooq Alam 34104-2324585-1 Alam
Optical Market, Shah Alam Gate, Chaudhry Muhammad Shahid Chaudhry Muhammad
Lahore Alam
Alam
19 Next Corporation Fayyaz Kamal 35202-2326647-9 Mustafa Kamal Jarral –
2 Noon Avenue, Old Aneela Fayyaz 35202-2241001-2 Fayyaz Kamal
Muslim Town, Lahore
20 Shabir Hussain Mohalla Rasoolabad, Shabir Hussain 33202-1204366-1 Muhammad Ameer Khan –
Maduni Road, Po Dhal Bagh, Chak
Ghumnana, Jhang
21 Waheed Brothers Abdul Waheed 33100-0986498-5 Abdul Qayum Shahid –

P-1/11, Street No.08-B, Yasrab Colony
Faisalabad
22 Muhammad Farooq Warriach Muhammad Farooq Warriach 33100-7829391-9 Muhammad Rafiq –

House No.p-394, Street No.01 Madina Town
Officer Colony Faisalabad
23 Shahid Traders Main Kot Farid, Iqbal Shahid Khan 38403-2049842-1 Manzoor Khan –
Colony Road, Mouza
Chak No.44/NB Ikram Colony Sargodha
(Rupees in '000)
waived
– 880 21 901 – 880 21 901
– 734 49 783 – 734 49 783
– 783 38 821 – 783 38 821
– 534 55 589 – 534 55 589
– 1.207 67 1.274 – 1.207 67 1.274
– 12.100 33 12.133 – 12.100 33 12.133
– 7.799 20 7.819 – 7.799 20 7.819
– 11.416 19 11.435 – 11.416 19 11.435
– 632 32 664 – 632 32 664
– 1.336 68 1.404 – 1.336 68 1.404
– 757 – 757 – 757 – 757
– 2.686 68 2.754 – 2.686 68 2.754

No. borrower
Domestic
24 Punjab Autos Shaukat Riaz 38403-2025496-5 Ghulam Hussain –
General Bus Stand
25 Khushab Oil Mills Muhammad Azhar Malik 38201-1224648-9 Zafar Ullah Malik –
House # L-8, Block # 8, Farooq Malik 235-58-01513-8 Abdul Ghafoor Malik
L-type, Jahurabad, Tehsil Farhat Malik 61101-2008447-5 Abdul Ghafoor Malik
& District Khushab
26 Zeeshan Traders Iqbal Pura, Town Khalil Ahmad 34302-5823066-3 Khushi Muhammad –
Committee Jalalpur Bhattian.
27 Usman Commission Shop Usman 34301-1723806-9 Rana Irshad Ullah –

Village & PO Kolo Tarar Tehsil & District
Hafizabad
28 Ashraf Billah Stainless Muhammad Ashraf Ansari 34101-2562187-9 Rehmat Ali Ansari –
Steel Khurram Shahzad 34101-2562190-9 Muhammad Ashraf
Pasban Colony Rajkot Tahir Tabbasum 34101-6393304-9 Muhammad Ashraf
Gujranwala
29 Muhammad Javed Khan House # 62- Muhammad Javed Khan 36201-0583856-9 Saif Ullah –
A, Multan Road Mailsi, Tehsil Dunyapur
District Lodhran
30 City Agro Syed Hammad Raza 36302-6934612-9 Syed Murtaza Shah –

102-104 1st Floor, Mall Azhar Nawaz 36302-6132586-1 Mazhar Nawaz
Plaza Multan Cantt Ather Nawaz 36302-0469516-7 Mazhar Nawaz
31 Shahzad Asghar Sheikh Gate No. 01, Shahzad Asghar Sheikh 37405-0614490-5 Muhammad Asghar Sheikh –
House No. 3, Near Safari Hospital, Phase-VI,
Mohallah Gulraiz Housing Scheme,
Rawalpindi
32 Sardar Muhammad Tariq Hayat Khan Sardar Muhammad Tariq 37405-0374748-5 Sardar Muhammad Hayat Khan –
House No. 04, Street No. 07, Muzammil Hayat Khan
Town, Shakrial Rawalpindi
33 Sadaat Enterprises Tahammal Abbas Hamdani 37405-0521349-1 Shaukat Abbas Hamdani –

Plot No. 390, Sector I-9, Industrial Area,
Islamabad
34 Islam Uddin Islam Uddin 42201-1249961-7 Phelwan Fareed Uddin –

House # 37, Block-5, Shah Faisal Colony,
Karachi
35 Sohail Baloch Sohail Baloch 41306-3534168-1 Nizam Uddin –

Banglow # 1, Faraz Villas, Phase-I,
Qasimabad, Hyderabad
(Rupees in '000)
waived
– 1.335 88 1.423 – 1.335 88 1.423
– 1.924 57 1.981 – 1.924 57 1.981
– 1.749 68 1.817 – 1.749 68 1.817
– 995 92 1.087 – 995 92 1.087
– 1.292 – 1.292 – 1.292 – 1.292
– 660 31 691 – 660 31 691
– 7.359 97 7.456 – 7.359 97 7.456
– 7.894 – 7.894 – 7.894 – 7.894
– 621 88 709 – 621 88 709
– 22.117 – 22.117 – 22.117 – 22.117
– 1.262 – 1.262 – 1.262 – 1.262
– 1.898 – 1.898 – 1.898 – 1.898

No. borrower
Domestic
36 Alif Sani Industries Plot # 8,9,10, Abdul Razzak Muhammad 42201–8297373–3 Ghulam Nabi Abdul Razzak –
Korangi Industrial Area, Karachi Fahad Muhammad Faisal 42201–2965802–1 Abdul Razzak
42201–2975302–1
37 Muhammad Nadeem House # R–64, Muhammad Nadeem 42101–1465815–1 Muhammad Ramzan –
Block ‘H’, KDA Scheme # 2, North
Nazimabad, Karachi
38 Taj Textile Mills Ltd House# 85–L Jahangir elahi Tanvir Elahi 35202–2561094–5 Aehsan Elahi Aehsan Elahi 21.115
Model Town Lahore Amir Jahangir Shahrukh Elahi 35202–5522225–3 Jahangir Elahi Tanveer Elahi
Muhammad Ashraf Tariq Latif 35202–0676798–7 Sh. Naseer Ahmed Abdul Latif
Ashfaq Nadeem 35202–6374883–5 Muhammad Bashir
35202–9135980–9
35201–8390613–3
35202–5269188–9
39 Qadeer Ahmad Qadeer Ahmad 35202–8934079–7 Nazir Ahmad –

185 Qayyum Block Mustafa Town, Lahore
40 Shalimar Shoes Muhammad Ghafoor 35201–2362090–3 Muhammad Bashir –

Haq Nawaz Road, Main Bazar, Haroon
Market, Baghbanpura, Lahore
41 Raheel Younis Raheel Younis 33201–4127274–3 Muhammad Younis –

St No 02, Mohallah Khalza College,
Faisalabad
42 Tanveer Ahmed Tanveer Ahmed 31303–7524582–3 Mohammad Ramzan –

Kot Kamoh Shah, Dakkhana Bahader Pur,
Rahim Yar Khan
43 Farhan Ahmed Paracha House No 82– Farhan Ahmed Paracha 42201–0559928–5 Ghulam Fareed Paracha 639
B/1 Khayaban E Sehar DHA Phase 7,
Karachi
44 Alam Cotton Mills (Pvt.) Limited M. Shafiq 42201–0547606–5 Muhammad Rafiq –

A–201–B, 2nd Floor, City Tower, Lahore. Faraz Shafiq Alam Adeel 42000–0503055–9 M. Shafiq Alam
Shafiq Alam Hammad Shafiq 42000–0503449–9 M. Shafiq Alam
Alam 42201–7410183–7 M. Shafiq Alam
45 Zafar Ahmad Bajwa & Co Zafar Ahmad Bajwa Malik 34101–2314715–7 Muhammad Sharif Naseer ud din 2.490
Mohallah Taj Pura Qila Didar Singh Dist. Fazal Hussain" 34101–2545078–3
Gujranwala.
46 Raza Steel Ali Raza 35202–2350603–3 Sheikh Anwer Hussain Ali Raza –
42– Peco Road Badami Bagh, Lahore Sheikh M. Raza 35202–2969469–3
47 VIP Motors Abdul Qadeer Zaidi 34603–2842530–5 Muhammed Shafi –

1– Ghalli Ghulam Mohammed Chakkiwa
Fatehgarh, Sialkot
(Rupees in '000)
waived
– 2.723 – 2.723 – 2.723 – 2.723
– 919 33 952 – 919 33 952
21.115 43.641 17 64.773 21.115 43.641 17 64.773
– 1.257 17 1.274 – 1.257 17 1.274
– 887 – 887 – 887 – 887
– 480 56 536 – 480 56 536
– 489 71 560 – 489 71 560
639 857 – 1.496 – 1.102 34 1.136
– 7.670 – 7.670 – 7.670 – 7.670
2.490 1.363 100 3.953 – 1.377 100 1.477
– 1.529 – 1.529 – 1.529 – 1.529
– 759 – 759 – 759 – 759

No. borrower
Domestic
48 Habib Ur Rehman 68–A, Satellite Habib Ur Rehman 38403–5214071–7 Mehr Allah Baksh Lak –
Town, Sargodha
49 Rehmat Ali & Co. Abdul Rauf Rashid Rauf 35201–1360971–7 Rehmat Ali Abdul Rauf Abdul –
1 – Link Mcleod Road, Lahore Rehan Rauf Rumeza Rauf 35201–4987340–1 Rauf Afzal Noor
35201–1276421–7
42201–0342422–8
50 Muhammad Jamil Khan House Mr. Muhammad Jamil Khan 35202–2858208–9 Muhammad Tufail –
No: 576, K Block, Sabzazar,
Lahore.
51 Haripur Food Industries (Pvt.) Mian Abid Manzoor Mian 2201–0341248–5 Mian Manzoor Hussain Mian –
Ltd. (Formerly SDA Cold Tariq Manzoor Munazza Abid 42201–0588130–1 Manzoor Hussain Mian Abid
Storage, Haripur) 36–Nazimuddin Asiya Khalid 42201–0396564–0 Manzoor Khalid Manzoor
Roa, F/8–4, Islamabad. 42201–0547736–2
52 Saim Mahmood Khan Baloch Saim Mahmood Khan 38402–1577510–9 Talib Hussain Khan –
Colony Jhang Road Sahwial Dist
Sargodha
53 Ejaz Ahmad Ejaz Ahmad 33100–7434532–7 Mushtaq Ahmed 342

House# 247/C Officer Colony 2,
Faisalabad
54 Nasim Ul Ghani Khan I–G–4/21 Nasim Ul Ghani Khan 42101–1494703–9 A.Ghani Khan 214
Nazimabad N O.1, Karachi
55 Sohail Shaikh Sohail Shaikh 42101–1402686–3 Shaikh Noor Muhammad 1.331

R–595 Block–I,Sharifabad,
F.B.Area, Karachi
56 Lutufullah Lutufullah 45203–7298803–7 Noor Muhammad Shaikh 725

Mir Ali Bazar Khain Pur City
Distt. Khair Pur
57 Sultan Qamer Sultan Qamer 514–90–149064 Noor Muhammad 375

202E, E Market, Block–6,
Commercial Area, PECHS,
Karachi
58 Muhammad Ahsan Raza Turabi Muhammad Ahsan Raza 35201–0747119–9 Imdad Hussain 499
House, D–Block, Al–Faisal
Town, Lahore Cantt.,
59 Irfan Quddus Irfan Quddus 61101–8824847–1 Chaudhary M Siddique 1.210

Gali School Wali,Kot Ghulam
Muhammad Khan, Kasur
60 Hakim Ali Hakim Ali 42201–1997875–1 Shafi Muhammad 622

C/O Luqum Din Unar, Sakrand,
P.O.Nawabshah.
(Rupees in '000)
waived
– 4.477 – 4.477 – 4.477 – 4.477
– 11.523 145 11.668 – 11.523 145 11.668
– 882 45 927 – 882 45 927
– 23.607 – 23.607 – 23.607 – 23.607
– 550 27 577 – 550 27 577
342 561 17 920 – 556 17 573
214 391 – 605 214 391 – 605
1.331 2.105 – 3.436 1.331 2.105 – 3.436
725 1.150 – 1.875 725 1.167 – 1.892
375 1.155 – 1.530 375 1.155 – 1.530
499 1.294 – 1.793 499 1.294 – 1.793
1.210 1.461 – 2.671 1.210 1.461 – 2.671
622 602 – 1.224 622 602 – 1.224

No. borrower
Domestic
61 Muhammad Qasim 43/2 20Th Street, Muhammad Qasim 41201–9748915–9 Haji Muhammad Hashim 620
Ph Ase–5, D.H.A. Karachi
62 Nasreen Akhtar H.No.24, Pcfl Nasreen Akhtar 37405–3045484–0 Muhammad Naem 371
Housing Colony, Hattar Road, Haripur.
63 Syed Zaffar Hassan Naqvi Syed Zaffar Hassan Naqvi 33106–1800579–7 Syed Mohd Hassan Naqvi 779
Moza Bullah Shah, P/O. Mamu Kanjan, Dist:
Faisalabad
64 Aamir Khan Apt.101 Tower A, Aamir Khan 42301–7584979–7 Iqbal A.Khan 329
Shadman
Residency,Block–2, Clifton, Karachi
65 Muhammad Tariq House # 03, Street # Muhammad Tariq 31303–5075888–9 Shabir Ahmed 857
05, Old Thana Road, Hussainab Rahim Yar
Khan Rahim Yar Khan
66 Asim Shahzad Asim Shahzad 37405–0526645–9 Ashiq Hussain 354

House # 17/8–A, Kamalabad, Rawalpindi
67 Faakhir Umair Faakhir Umair 32402–2262332–7 Yaar Muhammad 606

Mussori House, Faizil Pur Distt, Rajan Pur,
Fazil Pur
68 Zulfiqar Hussain Zulfiqar Hussain 42101–0456961–7 Iftikhar Hussain 361

A 71,Block R , North Nazimabad Karachi
69 Aamir Mehmood Khan House No.01, Aamir Mehmood Khan 34101–7750674–9 Shoukat Ali khan 598
Near Bilal Masjid Sahulat Market,Gik Road
Gujranwala
70 Rashid Amin Rashid Amin 36603–5985734–7 Muhammad Amin Sheikh 306

H No 147 –D Vehari
71 Fida Hussain Jatoi Village Thorha, Fida Hussain Jatoi 42301–9277862–1 M Ayaz Jatoi 453
Talka Moro, Distt Nowsheroferz
72 Ahsan Ullah Ahsan Ullah 31304–2080133–9 Muhammad Ashraf 470

House No 41 A Street No 18 Railway Officers Colony, Walton
Lahore
73 Asif Ahmed Siddiqui House No 115 Asif Ahmed Siddiqui 42501–5326664–3 M.Akbar Siddiqui 486
7/8 Jin Nah Housing Society Karachi
(Rupees in '000)
waived
620 1.046 – 1.666 620 1.046 – 1.666
371 573 – 944 371 573 – 944
779 1.229 – 2.008 779 1.229 – 2.008
329 702 – 1.031 329 702 – 1.031
857 1.014 – 1.871 857 1.014 – 1.871
354 572 – 926 354 572 – 926
606 866 – 1.472 606 866 – 1.472
361 817 – 1.178 361 817 – 1.178
598 917 – 1.515 598 917 – 1.515
306 350 – 656 306 350 – 656
453 745 – 1.198 453 745 – 1.198
470 759 – 1.229 470 759 – 1.229
486 677 – 1.163 486 677 – 1.163

No. borrower
Domestic
74 Danish Jamal Hashmi 79–2 Khy E Danish Jamal Hashmi 42301–6267600–9 Syed Yousuf Jamal Hashmi 702
Nishat D H A Phase 5 Karachi
75 Nadeem Sajjad Nadeem Sajjad 17301–0771171–9 M. Sajjad Younas 576

H No.49–C,Sc Lane #5
Sher Zaman,Tulsa Road, Lalazar Rwp Cantt
76 Balouch Zari Services Basti Mr. Khalid Mehmood 31202–1584584–1 Khuda Buksh Khan –
Tariqabad, Mouza Lal Wah Jagguwala,
Lodhran
77 Jamal Automobile Industry Danish Ahmed 35202–2458517–7 Muhammad Younas 697

House # 394, Ponch Road, Main Samanabad,
Lahore
78 Muhammad Jamil Akhtar Rai Muhammad Jamil Akhtar Rai 35202–5025616–3 Rai Ameer Ahmed Bhatti –
House # 10, Kiran Villas Aziz Avenue,
Gulberg V, Lahore.
79 Murtaza Nawaz Commission Shop Muhammad Nawaz 34101–8839481–1 Chaudhary Muhammad Sadiq –
Shope No. 06, New Ghalla Mandi Kamoki
District Gujranwala
80 Butt Dairy Farms Muhammad Boota Butt 33106–2848613–9 Imam Din Muhammad Siddique –
Tehsil Tandlianwala District Faisalabad Maqbool Ahmed Maqsood 33106–0306449–5 Muhammad Siddique Muhammad
Ahmed Muhammad Ashfaq 33106–0289990–5 Boota Imam Din
Muhammad Rafiq Muhammad 33106–6847106–3 Imam Din Muhammad Siddique
Ramzan Mehmood Ahmed 33106–0310746–5 Imam Din
Muhammad Siddique 33106–7445690–9
33106–3026794–5
252–91–106525
81 Al Umar Traders Muhammad Farooq Azam 33100–1026584–7 Muhammad Hussain –

House No.311/D, Peoples Colony No.01,
Post office Khas Faisalabad
82 Haryali Traders Maqsood Ahmed 33100–4735042–1 Bashir Ahmed 498

New Grain Market Faisalabad Road Chiniot
83 Ch. Noor Muhammad Main Road, Ch. Noor Muhammad 38403–6863636–1 Deewan Ali 999
House # 4–11, Noor Pur Basti Sargodha
84 Asif Hosiery Store Talha Market, Muhammad Naeem 38403–7474795–9 Muhammad Siddique 1.345
Block # 2, Sargodha
(Rupees in '000)
waived
702 1.116 – 1.818 702 1.116 – 1.818
576 871 – 1.447 576 871 – 1.447
– 2.127 83 2.210 – 2.127 83 2.210
697 2.005 95 2.797 – 1.879 95 1.974
– 4.590 17 4.607 – 4.590 17 4.607
– 1.721 – 1.721 – 1.721 – 1.721
– 5.772 169 5.941 – 5.772 169 5.941
– 1.288 37 1.325 – 1.288 37 1.325
498 1.302 92 1.892 – 1.307 92 1.399
999 809 49 1.857 – 618 49 667
1.345 724 45 2.114 – 581 45 626

No. borrower
Domestic
85 Ghulam Abbas Ghulam Abbas 33201–5931531–1 Muhammad Iqbal Khan –

New General Bus Stand, Bhowana, District
Chiniot
86 Ghousia Lasani Rice Mills Muhammad Sattar 34102–6510182–1 Muhammad Ramzan 5.910
Kassoki Road Kamonki
87 Khalil Ullah International 1–2 Khawaja Shakeel 35200–1454285–5 Khawaja Abdul Rasheed 31.959
Basement, Merah Hussain Center,
Montgomery Road Lahore
88 Abdullah Enterprises Fazal House Sheikh Fazal Ellahi 36302–7039576–7 Sheikh Muhammad Shafi 20.147
Behind Faysal Bank, Khanewal Road
Chowk Khumharanwala Multan
89 Masetti Ladies Shoes Shop No. 06, Waseem Riyaz Ahmed 42101–7364610–1 Riyaz Ahmed 4.990
Al–Habib Terrace, Block–09, Clifton,
Karachi.
and
Shop No. 1, Plot No. 15– C, Zamzama
Commercial Lane No. 02, Phase–V, DHA,
Karachi.
90 Integral Commodities Export Farhan Ahmed 42301–916970–4 Zafar Ahmed 8.898

109, landmark Plaza M.Bin Qasim Road, I.I
Chundrigar Road, Karachi
91 Taj Weaving Factory P–1651/39, Zulfiqar Ahmed 33100–1853913–9 Abdul Ghafoor 2.246
Street No. 07, New Millat colony Samundari
Road Faisalabad
92 ZML Printing Press Shop No.07, Inam Ul Haq 33100–2896020–7 Ghulam Qadir 2.506
Ground Plaza Minshi Mohallah Amin Pur
Bazar Faisalabad
93 Sine International Pvt Limited Muhammad Sultan Ahmed 42301–6003411–9 Muhammad Saeed Muhammad 108.888
CD–388 & 389 Gabol Town Sector 16, F.B. Abdul Qayyum Naseema 42301–6742580–7 Saeed Sultan Ahmed Abdul
Area Karachi Ahmed Andleeb Qayyum 42301–6727725–4 Qayyum Muhammad Saeed
Safdar Sayeed Qaiser Sayeed 42301–2638693–8 Muhammad Saeed Muhammad
Hyder Sayeed Shahid Jamil 42101–1557527–5 Saeed Muhammad Saeed
42201–3331659–9
42101–1950087–9
42101–9447644–1
(Rupees in '000)
waived
– 838 17 855 – 638 17 655
5.910 27.371 – 33.281 5.910 27.371 – 33.281
31.959 35.426 – 67.385 31.959 35.426 – 67.385
20.147 19.128 – 39.275 20.147 19.128 – 39.275
4.990 7.079 – 12.069 4.990 7.079 – 12.069
8.898 22.925 – 31.823 8.898 22.925 – 31.823
2.246 1.725 – 3.971 2.246 1.725 – 3.971
2.506 4.342 – 6.848 2.506 4.342 – 6.848
108.888 101.929 – 210.817 108.888 101.929 – 210.817

No. borrower
Domestic
94 M.A. Enterprises Sh. Muhammad Riaz Sheikh 33100–6090439–5 Haji Sh. Muhammad Ilyas Haji 3.319
P–20 Sheikhupura Road Opposite MCB Muhammad Ijaz 33100–0898955–7 Sh. Muhammad Ilyas
Bank Limited Near Jalal Ice Factory
95 Kausar Textile Industries Atlas Street Muhammad Idrees Lubna 33100–0666263–5 Ghulam Muhammad Muhammad 10.567
Maqbool Road Faisalabad Idrees 33100–7916767–4 Idrees
96 Muhammad Aslam Village and P.O Muhammad Aslam 38401–0267967–1 Muhammad Anwar 998
Uppi, Tehsil Kotmoman
97 Arslan Weaving Factory Chak No. Muhammad Boota 33101–1713988–5 Bashir Ahmed –
187/RB Tehsil Chak Jhumra District
Faisalabad
98 Barkaat Electronics Kaghan Colony, Munir Ahmad 42501–3708351–1 Gohar Rehman 4.994
Near Elahi Masjid, Abbottabad.
99 Mirza Zaheer Baig House # 44/4, Mirza Zaheer Baig 36302–3356996–1 Mirza Naseeb Baig 1.586
Sakhi Sultan Colony, Suraj Miani Road,
Multan.
100 Indus Chemicals Multan Road, Opp, Ejaz Fareed 32102–8256634–3 Muhammad Buksh Muhammad 3.375
Main Market Khayaban E Sarwar D.G Khan. Muhammad Baksh Khosa 32102–9983753–5 Azeem Muhammad Buksh
Fayyaz Fareed 32102–2180086–5 Muhammad Buksh Muhammad
Zahid Fareed Mumtaz Fareed 32102–1704817–3 Buksh Muhammad Mitha Din
Abdul Majeed Mushtaq 32102–4912040–5 Muhammad
Ahmad 32102–0965627–1
32102–0926245–1
101 Rana Muhammad Afzal & Brothers Rana Muhammad Afzal Khan 36103–5588695–3 Ghualm Nabi Khan –
Shop No.18 Ghallah Mandi Khanewal.
102 Maher Iqbal Iron Store Chak # 386 Muhammad Iqbal 36201-5949652-7 Khuda Buksh 794
WB P/o Makhdoom Aali Tehsil Dunyapur
District Lodhran.
103 Sheikh Qudrat Elahi 423/17–A Qurshi Sheikh Qudrat Elahi 31202–0265528–3 Sheikh Riaz Ahmed 1.397
Colony, Ahmedpuri Gate Bahawalpur.
104 Sheikh Mehboob Elahi 423/14–15 Sheikh Mehboob Elahi 31202–0264427–7 Sheikh Riaz Ahmed 998
Qurshi Colony, Ahmedpuri Gate
Bahawalpur.
105 Khalid Brothers Khalid Mehmood 34101–2203300–1 Abdul Hameed 7.911

9–A Mohafiz Town, Gujranwala.
(Rupees in '000)
waived
3.319 1.714 – 5.033 3.319 1.714 – 5.033
10.567 22.037 – 32.604 10.567 22.037 – 32.604
998 857 32 1.887 – 667 32 699
– 712 57 769 – 508 57 565
4.994 371 45 5.410 – 478 45 523
1.586 2.505 70 4.161 – 2.507 70 2.577
3.375 956 80 4.411 – 990 80 1.070
– 1.669 16 1.685 – 1.669 16 1.685
794 508 44 1.346 – 507 44 551
1.397 1.617 57 3.071 – 1.628 57 1.685
998 1.247 49 2.294 – 1.253 49 1.302
7.911 14.829 23 22.763 7.911 14.829 23 22.763

No. borrower
Domestic
106 Irfan & Co. Irfan Tuheed 34101–5794325–9 Abdul Hameed 7.911
9–A Mohafiz Town, Gujranwala.
107 Syed Abid Hussain House # R–102, Syed Abid Hussain 42501–6789337–9 Syed Muhammad Hussain 515
Sector 15–B Buffer Zone, North Karachi
108 Yasir Arfat Yasir Arfat Shahzadi Yasir 35201–6722419–3 Malik Gulzar Ahmed Yasir Arfat 4.337
House No: 290–J, Phase–I, 35201–6221160–0
DHA Housing Authority, Lahore Cantt.
Lahore.
109 EXIN Chemicals Muhammad Hanif Tariq 31205–3464301–9 Nazir Ahmed Ch. Chiragh Din –
Corporation Manzoor Ahmed 36603–0346108–3 Nazir Ahmed
33–B, Industrial Estate, Multan Road, Ch. Muhammad Latif Ch. 35201–8390365–9 Ch. Bashir Ahmed
Lahore Tuqeer Ahmed 36302–2784093–9
110 Al–Khair Filling Station Main Hamid Sarwar Ghulam 35201–9128780–5 Ghulam Sarwar Rehmat Ali –
Harbanspura Road, Mouza Tajpura, Lahore Dastagir 35201–1538315–1
Cantt.
111 Saeed Ahmed Shafi House No. 217, Saeed Ahmed Shafi 35201–9934830–3 Sheikh Nazir Ahmed Shafi 2.103
Block–W, Phase–III, DHA, Lahore
112 Data Paper Cone Factory Ehsan Ahmed 33100–0651035–1 Khan Ahmed Muhammad Shafiq 3.005
79/J.B Gojra Road Faisalabad. Rana Muhammad Adnan 33100–1955966–9 Muhammad Sharif
Muhammad Shafiq 33303–5711835–3
113 Sajawal Weaving Factory Muhammad Shafiq Bushra 33303–5711835–3 Muhammad Sharif Muhammad 1.612
Chak No. 79/JB Adda Gojra Road 33100–5557408–4 Shafiq
Faisalabad
114 Muhammad Shafiq Chak No.78 Muhammad Shafiq 33303–5711835–3 Muhammad Sharif 4.309
Javodi Post office Khas Faisalabad
115 Shafiq Brothers Muhammad Shafiq 33303–5711835–3 Muhammad Sharif –

House No. P–81, Street No. 04, main Bazar
Dhobi Ghat Faisalabad
116 Cast N Link Nisar Ahmed 42301–3612315–7 Muhammad Yaqoob 1.529

Consortium Loan, Plot # C–133, Nooriabad
Industrial Estate, Dadu
117 Ittehad Enterprises Israr Ahmad Ejaz Ahmad 343025–930321–5 Ahmad Din 843
Thatha Ghara, Hafizabad 343021–231363–9 Sher Muhammad
118 Ayub Enterprises 17–KM, Bank Stop, Tahair Ayub 35201–1621692–3 Muhammd Ayub Khan 504
Ferozepur Road Lahore.
(Rupees in '000)
waived
7.911 10.817 18 18.746 – 10.817 18 10.835
515 701 – 1.216 – 705 – 705
4.337 2.484 19 6.840 – 2.170 19 2.189
– 22.899 22 22.921 – 22.899 22 22.921
– 643 18 661 – 643 18 661
2.103 5.912 – 8.015 – 5.710 – 5.710
3.005 2.445 52 5.502 – 2.450 52 2.502
1.612 1.456 – 3.068 – 1.493 – 1.493
4.309 4.803 40 9.152 – 4.905 40 4.945
– 768 35 803 – 768 35 803
1.529 4.116 11 5.656 – 4.105 11 4.116
843 1.116 42 2.001 – 1.116 42 1.158
504 12.119 67 12.690 – 11.705 67 11.772

No. borrower
Domestic
119 Fatima Enterprises Ltd. 487–A Vehari Kashif Tafazzal Warsi 36302–0474444–3 Nasir Hussain Warsi Shareef 25.029
Road, Mumtazabad Multan Muhammad Saeed Khan 36302–0408146–7 Khan
Muhammad Ibad Raja Nishat 36302–4607310–7 Sher Khan
Ahmed Sh. 36302–9521257–1 Sh. Fazal Rehman Syed Asghar
Syed Arshad Hussain Shah 36302–0420122–3 Hussain Shah
Sh. Zafar Iqbal Muhammad 61101–3583343–9 Sh. Fazal Rehman Muhammad
Islam 36302–2636750–3 Ramzan
120 Ahmed Shah Industries 40–KM Mehmood–ul–Hassan Shah 36302–9267986–1 Manzoor Ahmad Shah 16.499
Vehari Road Chowk Matla, Multan
121 Sardar Muhammad Nawaz Sardar Muhammad Nawaz 35202–0560068–3 Muhammad Hanif Nawaz –
Mohallah Farooq Park, Peco Road, Near
Multan Chungi, Lahore
122 Asif Shahzad Asif Shahzad 36302–6490070–3 Sheikh Habib Ur Rehman 8.464
H No 6 St No 3 Mohalah New Shalimar
Colony Bosan Road Multan
123 Nadeem Traders 979/36,Shah Badar Khawaja Nadeem Bashir 36302–2987306–9 Khawaja Bashir Sahmad Siddiqui 1.550
Road, Behind Eid Gah Multan. Ahmad 36302–0752112–3 Malik Hayyat Muhammad
Malik Mushtaq Ahmad
124 AK Traders Muhammad Azam Khan 36302–5739058–1 Rustam Khan 478

House # 29 Mohallah New Mumtazabad
Multan.
125 Umar Hayat Bajwa Village Dilawar Umar Hayat Bajwa 34101–6320425–5 Muhammad Hayat Bajwa 800
Bajwa Bhag,P.o Khas, Tehsil Pasrur Distt
Sialkot
126 Raushi Builders & Town Planners Waheed uz Zaman 34201–9015793–1 Chaudhary Mohammad Zaman 423
Dogah House Rehman Shaheed Road Gujrat Doga
127 M. Shafi Gulzaman House#40, Gosh– Muhammad Shafi Gulzaman 35202–2970172–3 Ghulam Hussain 2.318
e– Ehbab, Phase–III, PECO Road, Lahore
128 Grain Tech Pvt Ltd Syed Faisal Hasan Nosheen 35202–2835900–7 Mukhtar Husain Faisal Hassan 33.744
99–C Model Town Lahore Faisal Feroza Bano 35202–2667973–4 Mukhtar Husain
35202–2654126–4
129 Zia ur Rehman Bukhari House No. Zia ur Rehman Bukhari 31202–9059292–3 Abdur Rehman 305
60, Model Town –B, Labour Colony,
Bahawalpur
130 Nadeem Ahmad Nadeem Ahmad 42101–5247735–9 Abdul Hameed 300

MCB Gari K Hata Hyderabad. Dheri Zardad
(Rupees in '000)
waived
25.029 29.950 679 55.658 25.029 29.950 679 55.658
16.499 50.991 75 67.565 16.499 50.991 75 67.565
– 650 16 666 – 650 16 666
8.464 – – 8.464 – 1.644 317 1.961
1.550 3.519 – 5.069 – 3.541 – 3.541
478 965 51 1.494 – 930 51 981
800 519 25 1.344 – 546 25 571
423 1.840 82 2.345 – 1.745 82 1.827
2.318 1.241 – 3.559 – 1.113 – 1.113
33.744 57.358 624 91.726 8.744 57.747 624 67.115
305 284 – 589 305 284 – 589
300 325 – 625 300 325 – 625

No. borrower
Domestic
131 Aftab Ali Khaskheli Aftab Ali Khaskheli 41504–0418310–7 Imam Bux Khaskheli 312
K– Old Golimar Bismillah Hotel Karachi
132 Chaudhry Fakhar–Ul– Islam Chaudhry Fakhar–Ul– Islam 36302–6574889–7 Ch. Faqeer Muhammad 322
K–block Shah Rukan–E– Alam Multan
133 Aziz Anwar Ali Nathani Aziz Anwar Ali Nathani 45104–2311606–5 Mir A Hussain Shah 493
C– Dha. Karachi Karachi
134 Muhammad Mushahid Khan Muhammad Mushahid Khan 37405–9658869–3 Muhammad Hamid Khan 308
House No.98, Mohalla Garden Road,
Rawalpindi Cantt
135 Ashfaque Ahmed Shaikh Ashfaque Ahmed Shaikh 43102–2477184–8 Bashir Ahmed Shaikh 296
C.S No. / Shaikh Mohalla Shikarpur
Shikarpur Jacobabad
136 Saad Akhtar Qureshi Mouza Niaz Saad Akhtar Qureshi 34603–5468990–3 Ghulam Farid Qureshi 248
Baig Mouza Niaz Baig Niaz Baig Lahore
137 Malik Ehtisham Malik Ehtisham 274–89–388555 Malik Ahmad 241

Khair–Uddin High Sch Ahtisheen Street
Bahr Mandi Road Lahore Lahore
138 Ahmed Dawood Hashmi House # 1, Ahmed Dawood Hashmi 36302–3269195–9 Zafar Iqbal Hashmi 210
Faisal St Reet, Bosan Road, Neelkot Karachi
139 Muhammad Ittrat Muhammad Ittrat 35202–2971519–1 Ashraf Nazir 280

24/A, Noor Ullah Colony, Multan Road,
Lahore
140 Imran Ali Imran Ali 36502–1373719–3 Abdul Gohazoor 685

House.No.126 Street, No.4 Muslimabad
Sahiwal
141 Mehboob Ali Mehboob Ali 55302–1775372–9 Abdul Ghani 513

Killi Bungalzai Near Wapda Gried Station,
Saryab Road Quetta
142 Abbas Raza Hussain Katchery Chowk Near T1/2.Phone Abbas Raza Hussain 35301–1962238–1 Syed Mumtaz Ali Shah 429
Exchange Depalpur Okara
143 Maqsood Ahmed H.No.5–7/4 Maqsood Ahmed 54400–2852664–1 Abdul Sattar 634
Kaikabad Road, Quetta. Quetta Quetta
(Rupees in '000)
waived
312 316 – 628 312 316 – 628
322 400 – 722 322 400 – 722
493 429 – 922 493 429 – 922
308 326 – 634 308 326 – 634
296 242 – 538 296 242 – 538
248 270 – 518 248 270 – 518
241 365 – 606 241 365 – 606
210 300 – 510 210 309 – 519
280 433 – 713 280 445 – 725
685 466 – 1.151 685 495 – 1.180
513 744 – 1.257 513 766 – 1.279
429 830 – 1.259 429 848 – 1.277
634 678 – 1.312 634 705 – 1.339

No. borrower
Domestic
144 Ali Raza Ali Raza 37405–0279824–9 Raja Aman Ullah 1.201
House # 5C1 Sattlite Town, Rawalpindi,
145 Qaisar Shahzad Qaisar Shahzad 61101–4264678–5 Abdul Hameed 848

H–No–45, St # 35–A,
1–9/4 Islamabad
146 Rao Naveed Ahmed P O Lar . Main Multan Bahawalpur Rao Naveed Ahmed 36303–9853090–5 Rao Abdul Sattar 918
Road
147 Jaffar Hussain Jaffar Hussain 38405–5284274–9 Ch. Munir Ahmed 1.278
House # 322, Block 1, Zia Shaheed Road, Sillanwali, Sargodha
148 Sajawal Sanitary Fittings Kacha Sheikhupura Road, Basharat Ali 34102–7637089–5 Qaim Din 926
Gujranwala.
149 Madina Commission Shop Sana Ullah 34302–1570278–5 Muhammad Nazir 328
Daera Khialeka, P/o Solengee Kharal , Jalal
pur Bhattian Tehsil pindi Bhattian District
Hafizabad
150 Hamid Parvez & Qazi Muhammad Masood House No. 90, Hamid Parvez 35202–7765404–7 Qazi Muhammad Mehboob 1.877
Block P Qazi Muhammad Masood 35202–2540360–9 Qazi Muhammad Mehboob
,Model Town Extension Scheme, Lahore
151 Iqbal Baig Marbal Factory Mirza Ejaz Baig Mirza Afzal 34603–2958630–5 Mirza Iqbal Baig Mirza Iqbal 796
Talwara Mughlan Sialkot Sialkot" Baig Mirza Sarfraz Baig 34603–4823831–3 Baig Mirza Iqbal Baig Mirza
Shahzad Baig 34603–5421666–1 Iqbal Baig
34603–8801390–5
152 Qamar Abbas Tabbasum Chowk Qamar Abbas Tabbasum 36103–4574161–7 Muhammad Hussain Allah Dad 265
Sarwar Shaheed Road Rangpur, Tehsil & Muhammad Nawaz Misry 32304–2302113–1 Khan Muhammad Nawaz
District Muzaffargarh. Ameer Hayder 32304–2168022–5
153 Ghulam Murtaza & Ghulam Mustafa Ghulam Murtaza Ghulam 36402–7733111–9 Ghulam Qadir Ghulam Qadir 161
Mouza Heela Watooan, PO Baonga Hayat, Mustafa 36402–7279330–1
Tehsil & District Pakpattan Sharif.
154 Ali Brothers Ali Murad Muhammad Imran 36302–3754518–9 Haji Ghulam Akbar Siddiqui 5.183
Construction Company Pace N Pace, Chungi # 6 Multan. 36302–0430104–9 Haji Ghulam Akbar Siddiqui
155 N. Brothers Muhammad Niaz 36502–1288490–1 Abdul Aziz Karmani 86

P/o Khas Chak # 135/9 AL, Tehsil & District
Sahiwal.
(Rupees in '000)
waived
1.201 1.274 – 2.475 1.201 1.325 – 2.526
848 1.100 – 1.948 848 1.136 – 1.984
918 1.124 – 2.042 918 1.163 – 2.081
1.278 642 – 1.920 – 564 – 564
926 607 196 1.729 – 543 196 739
328 570 38 936 – 546 38 584
1.877 2.936 63 4.876 – 2.733 63 2.796
796 1.520 52 2.368 – 1.478 52 1.530
265 655 37 957 – 663 37 700
161 536 – 697 – 540 – 540
5.183 4.538 105 9.826 – 4.438 105 4.543
86 554 31 671 – 507 31 538

No. borrower
Domestic
156 Delta Agro Chemicals Trust Plaza Muhammad Mazhar Javed 36302–0038778–3 Muhammad Sarwar 2.999
Chowk Dera Adda Multan.
157 Allah Rakha Allah Rakha 36603–6337806–1 Sakandar Ali Khan 350
Mouza Lal Deh Tehsil & District Vehari.
158 Mola Bux Mola Bux 41306–9318285–1 Balu Faqeer 1.990

House # B–48, PH–II,
Qasimabad, Hyderabad
159 Mumtaz Electronic House # R–1020 Syed Naeem Ahmed 42101–5309082–5 Syed Mumtaz Ahmed 3.996
Sector 15–B, Buffer Zone, North Karachi
160 Muhammad Bashir House # 121, Muhammad Bashir 42201–1900731–9 Muhammad Ali 1.000
Block–6, E Market, PECHS, Karachi
161 Syed Shan e Ali Naqvi House # R– Syed Shan e Ali Naqvi 42101–1567806–9 Syed Shan e Muhammad Naqvi 1.013
1145, Block–20, Incholi Society,
F.B. Area, Karachi
162 Hassan Board Industries Chaudhary Muhammad 34101–0264801–5 Muhammad Hassan –

22–Kilometer, Mannoabad Ramzan
G.T Road Muridke
163 Diamond Paper Board Mills (Pvt) Ltd Muhammad Ashraf 33100–0628011–5 Talib Hussain Muhammad –
8–Km Faisalabad Road, Opposite Mitha Masoon Darbar Sargodha Muhammad Umair Asif Mian 34101–4139549–7 Ramzan Mian Muhammad
Maqsood ul Hassan 34101–6135784–5 Hassan
164 Muhammad Imran Khan St# 31, Muhammad Imran Khan 36302–3589832–7 Muhammad Usman Khan 160
Charaghia Chowk, Gulzaib Colony, Mumtaz
Abad, Multan
165 Malik Tashif Yousaf Malik Tashif Yousaf 34603–2824318–7 Malik Muhammad Yousaf Khan 404
Pul Aik Habib Pura Pasrur Road C/O
Muhammad Saleem Mir Timber Market
Sialkot
166 Sajjad Traders Sajjad Raza Khan Amjad 33202–1771658–3 Muhammad Hussain Ahmed Raza 3.442
Ghalla Mandi Jhang Hussain 36501–4929276–3 Khan
167 AL Kisan Sizing Industries Qadirabad Muhammad Ijaz 33100–6446481–9 Chaudhry Muhammad Saleem 19.327
Ghulam Muhammadabad Faisalabad
168 Wasif Mazhar Wasif Mazhar 61101–4121015–3 Mian Mazhar ul Haq 512
House No. 1137, Street No. 26, Sector I–
10/4, Islamabad
(Rupees in '000)
waived
2.999 2.137 50 5.186 – 2.089 50 2.139
350 324 30 704 – 674 30 704
1.990 762 – 2.752 – 752 – 752
3.996 2.931 – 6.927 – 2.975 – 2.975
1.000 603 – 1.603 – 620 – 620
1.013 542 – 1.555 – 513 – 513
– 30.485 8 30.493 – 30.485 8 30.493
– 8.046 8 8.054 – 8.046 8 8.054
160 564 30 754 – 525 30 555
404 572 17 993 – 534 17 551
3.442 1.611 65 5.118 – 1.680 65 1.745
19.327 13.837 28 33.192 – 13.893 28 13.921
512 953 – 1.465 – 918 – 918

No. borrower
Domestic
169 Super Master Industries Plot # 35, Aqeel Ahmed 42101–4620989–9 Aziz Mohammad 4.210
Sector 12/B, Industrial Area, North Karachi,
Karachi
170 F. Y. International Muhammad Younus 42101–3082237–5 Muhammad Yousuf 750

Shop # 1, Ground Floor,
Rehman Heights, Plot # PR–1/20/V–4–B–
25,
Preedy Quarters, Karachi
171 Zafar Iqbal and Brothers Ghalla Sana Ullah 34302–1250301–9 Sher Muhammad 250
Mandi Jalalpur Bhattian District Hafizabad
172 Muhammad Nawaz Khad Dealer Muhammad Nawaz 34104–2214278–9 Rehmat Khan 1.147
Ghalla Mandi Ghakhar, Tehsil Wazirabad
District Gujranwala.
173 Wajid Traders Wajid Javed 34104–2280839–9 Muhammad Javed –

174 Qasim Brothers Qasim Javed 34104–5615422–5 Muhammad Javed –

175 Cherished Muhammad Azam 61101–1903673–1 Muhammad Hafeez Chaudhary 1.041

Pharmaceutical (Pvt.) Ltd
Office No.143, Street Nio.65, Sector F–
10/3, Islamabad
176 AZM Chemical Company Syed Wajahat Hussain Zaidi 42201–0967845–9 Syed Muhammad Aslam Zaidi 24.999
Plot No. F–18, Block–06, P.E.C.H.S.,
Shahrah–e– Faisal, Karachi.
177 Royal Cosmo Industries (Pvt.) Ltd Mian Imran Saeed Shazia 34601–0733320–3 Mian Khalid Saeed Mian Imran 84.302
Addha Town, Daska Road, Sialkot. Saeed 34601–0711490–0 Saeed
178 Rahmz International 6 K.M. Daska Mian Imran Saeed 34601–0733320–3 Mian Khalid Saeed –
Road, Sialkot.
179 Sohail Siraj Sohail Siraj 42201–2919992–1 Siraj ul Arfin 1.121

Shop # 3, Ground Floor, Kiran Hight, Bihar
Muslim Co–operative Housing Society Ltd,
Karachi
(Rupees in '000)
waived
4.210 15.490 34 19.734 – 14.602 34 14.636
750 1.207 33 1.990 – 1.175 33 1.208
250 1.149 58 1.457 – 860 58 918
1.147 965 17 2.129 – 735 17 752
– 878 17 895 – 728 17 745
– 647 – 647 – 647 – 647
1.041 968 – 2.009 – 1.003 – 1.003
24.999 30.240 1.470 56.709 – 30.686 1.470 32.156
84.302 174.932 – 259.234 84.302 174.932 – 259.234
– 26.849 – 26.849 – 26.849 – 26.849
1.121 1.506 – 2.627 – 1.211 – 1.211

No. borrower
Domestic
180 New Malik Enterprises Street # 1, Mumtaz Hussain 36103–2008740–9 Ashiq Hussain 1.435
House # 1, Raza Abad, Suraj Miani Road,
Multan.
181 Saba Corporation Opposite Atta Faiz– Tahir Hussain Kamran Ahmad 36302–0366520–7 Malik Hussain Buksh Javed 5.997
e– Aam High School, Chowk Shahbaz, 36302–0471008–9 Hussain
Vehari Road Multan.
182 Fauji Brothers Rice Dealer Quaid–E– Muhammad Farooq Toor 31301–1287943–9 Ghulam Nabi Muhammad Farooq 1.593
Azam Millat Road Khan Pur. Farzana Iqbal 31301–3876499–4 Hassan Ud Din
Rafiqan Bibi 31301–1429404–6
183 Rana Muhammad Iqbal Shakir Rana Muhammad Iqbal Shakir 32302–1712274–9 Rana Naseer Liaqat Ali 379
Mauza Jatoi Shumali Bismillah Colony, Shafaqt Ali 32302–5901986–7
Tehsil Jatoi & District Muzaffargarh.
184 Abbas Rice Mills Ch. Jameel Ahmed 35402–7515531–1 Ch. Munir Ahmed 3.991
House # 49–C–1, Nespak Housing Society,
College Road Township Lahore
& Faiz Pur Colony, Dakh Khana Mandi
Faizabad, Tehsil Nankana Sahib, District
Sheikhupura.
185 Asif Yousaf Asif Yousaf 35201–5979837–7 Muhammad Yousaf 3.713

House # 396, Block–Z, Phase–III,
Lahore
186 Al Hamd Commission Shop Ashfaq Ahmed 35402–1971810–9 Muhammad Ashfaq 999
Main Lahore Jaranwala Road, Mandi
Faizabad, Tehsil and Dist Nankana Sahab,
Sheikhupura
187 Muhammad Younis Bhatti Muhammad younis Bhatti 33104–2194702–1 Allah DAD Khan –
Chak No. 106GB Tehsil Jaranwala distt
Faisalabad
188 Nawaz Ahmad Malik H#209 J2,Johar Nawaz Ahmad Malik 35202–2795373–3 Fayyaz Ahmad Malik 329
Town Near Expo Centre Lahore
189 Muhammad Ishfaq Chak Kot Wala, Muhammad Ishfaq 33202–6962971–3 Bahadur 348
Ward No 4, Shah Shakor, Jhang
(Rupees in '000)
waived
1.435 1.834 – 3.269 – 1.887 – 1.887
5.997 4.647 66 10.710 – 4.847 66 4.913
1.593 1.190 100 2.883 – 1.222 100 1.322
379 589 27 995 – 582 27 609
3.991 15.313 20 19.324 – 15.302 20 15.322
3.713 2.482 17 6.212 – 2.581 17 2.598
999 1.605 – 2.604 – 1.635 – 1.635
– 663 – 663 – 663 – 663
329 427 16 772 – 506 16 522
348 169 32 549 – 531 – 531

No. borrower
Domestic
190 Inam Ur Rahim Inam Ur Rahim 35202–2909989–5 Javed Iqbal 3.865
162–A Tnt Abpara Housing Society raiwind
Road ,Lahore
191 National Poultry Farm Machli Fida Hussain 36402–0765986–5 Mian Muhammad Akbar 499
Chowk, Pakpattan Sharif, Tehsil & District
Pakpattan Sharif.
192 Muhammad Akram Flat # 401, Muhammad Akram 36302–6439255–7 Riyasat Ali 8
Block –20, Samama Corner ,
Gulistan–E–Johar Karachi
193 Arshad Diyal Kiryana Store Muhammad Arshad 33101–8948485–5 Muhammad Akbar 1.499
Shop No.26, Jaranwala Road Chak Jhumra Muhammad Afzal 33101–1687705–7
District Faisalabad
194 Hamid Nazir Chaudhry Hamid Nazir Chaudhry 33100–0576921–5 Haji Nazir Ahmed 3.746
House No. P–57/2 Bilal Road Civil Line
Faisalabad.
195 A H Zed & Knitwear P–119/H Tahir Hamid Nazir Chaudhry 33100–0576921–5 Haji Nazir Ahmed –
Road Near Hashmat Chowk Gulistan Colony
No.01 Faisalabad
196 Sooban Cotton Muhammad Rafi Manzoor 32303–8986094–5 Mehar Allah Yar Mehar Allah 1.721
Industries (Pvt) Ltd (Borrower Code: 54847) Hussain Ahmad Yar 32303–5416573–7 Yar Khuda Bux
Adda Sanjar Syyedan, Mouza Pridhan 32303–4833161–7
Sharqi, Tehsil Taunsa Sharif & District Dera
Ghazi Khan.
197 Yasir Saleem Traders Madni Colony Ghallah Mandi Muhammad Naseem Akhtar 31101–2517744–3 "Rao Ahmad Khan Muhammad 81
Bahawalnagar. Zubaida Begum Nusrat 31101–4700105–4 Ameen Muhammad Naseem
Parveen 31101–9398118–8 Akhtar
198 Muhammad Akram & Co Ghallah Muhammad Akram Munawar 36601–8373179–5 Fateh Muhammad Farzand Ali 406
Mandi Burewala District Vehari Khan 36601–0559628–1 Khan
199 Amdani Medicine Co Office No. 303 Muhammad Farooq Amdani 42201–0622163–1 Haji Ahmed –
3Rd Floor Makkah Medicine Market Kachi
Gali Marriot Road Karachi
200 Muhammad Muhammad Shahnawaz 42401–1849634–7 Ghulam Jillani –

Shahnawaz Ahmed House # 343 Sector 14 Ahmed
Block I Sir Syed Colony Orangi Town
Karachi
(Rupees in '000)
waived
3.865 590 – 4.455 – 579 – 579
499 654 36 1.189 – 674 36 710
8 492 128 628 – 596 – 596
1.499 741 58 2.298 – 790 58 848
3.746 5.486 67 9.299 – 5.596 67 5.663
– 1.046 59 1.105 – 1.046 59 1.105
1.721 7.224 66 9.011 – 7.289 66 7.355
81 527 32 640 – 499 32 531
406 757 26 1.189 – 641 26 667
– 1.700 – 1.700 – 1.700 – 1.700
– 3.608 33 3.641 – 3.458 33 3.491

No. borrower
Domestic
201 Chaudhry Steel Re– Rolling Mills Ch. Muhammad Shafique Mrs 35202–0217025–7 Ch. Noor Muhammad –
(Pvt.) Ltd 79–Peco Road, Badami Bagh, Sarwar Sultana Khalid Pervaiz 35202–3779689–2 Muhammad Shafique Abdul
Lahore Muhammad Umer 35201–1221392–9 Rahim Muhammad Hussain
Aniqa Shafique Shamsa 35202–6366524–1 Ch. Muhammad Shafique Ch.
Yaseen Muhammad Ilyas 35202–2367448–0 Yaseen Mukhtar Jamal Din
Butt Ch. Yasin Mukhtar 35202–1715045–6 Mukhtar Ahmed Muhammad
Waheed Akbar 35202–2559536–3 Akbar Ali
35202–4650926–3
34601–0336550–1
202 Tallat Mehmood Tallat Mehmood 35202–6147786-9 Ch. Muhammad Alam 4.716
House No 69 Block B–Iii Johar Town
Lahore
203 Rana Brothers Moulding Works Mushtaq Ahmed Salamat Ali 35202–8437757–1 Allah Rakha Ahmed Din 407
11– K.M G.T Road Soo Moria Pul 35202–8328320–9
Ferozwala Shahdara Lahore.
204 Ch. Fazal Hussain House No. D–6/G. Ch. Fazal Hussain 37405–6946504–7 Ch. Muhammad Shafi 4.996
7Th Road, D Block, Satellite Town,
Rawalpindi
H. No. 309 D, Satellite Town Rwp
205 Syeda Zaheen Akhtar House No Na– Syeda Zaheen Akhtar 61101–1877240–8 Syed Saleh Hussain Shah 1.113
85D Street No#9, Near 07Th Road New
Malpur, Satellite Town, Rawalpindi
54/3C, School Road, Sector G–7/2,
Islamabad
206 Mr. Ghulam Abbas Chattha Ghulam Abbas 34104–5188852–9 Allah Ditta 2.951
Muhallah Madni Town Near Unchy Minar
Wali Masjid Rasool Nagar Road Alipur
Chattha
207 Awais Ashraf Muhammad Ashraf 34302–3834624–1 Sai Muhammad 361

Commission Shop Mangta Wala Road Tehsil
Pindi Bhattian Dist Hafizabad
208 Al Mudassar Ansar Iqbal 34302–1252625–9 Nasar Ullah Khan 327

Corporation
Thatta Gahra Near Ali Rice Mills Tehsil
Pindi Bhattian Distt Hafizabad
209 Umer Aslam Umer Aslam 35404–2759799–7 Mian Muhammad Aslam 438
Haji Ghulam Muhallah Ram Garh Gujranwala Road Sheikhupura
(Rupees in '000)
waived
– 61.225 15 61.240 – 61.225 15 61.240
4.716 2.446 25 7.187 – 2.686 17 2.703
407 11.516 – 11.923 – 10.787 – 10.787
4.996 1.381 – 6.377 – 1.582 – 1.582
1.113 1.202 – 2.315 – 1.236 – 1.236
2.951 355 52 3.358 – 524 52 576
361 547 168 1.076 – 568 114 682
327 467 78 872 – 427 78 505
438 488 32 958 – 509 32 541

No. borrower
Domestic
210 Asif Azhar Asif Zafar 37203–8205476–3 Zafar Iqbal 1,646 689 – 2,335
VPO akwal tehsil Talagang Distt Chakwal
211 Khursheed Towel Dilshad Ahmed Khan 42101–8574119–7 Khursheed Ahmed Khan – 499
House # 97–11, Sector 5–G, North Karachi Lodhi Lodhi
Township, Karachi
Overseas
1 N.B. Foods (Pvt) Ltd Andrew James Alston 882341330V Poobalarayen Suresh Perera –
N0. 125, 5th Cross Street, Colombo–11, Sri Poobalarayen Kannpathy 792520030V Seneviratne Seneviratne
Lanka Suresh Hewayalage Sunil 650422651V
Perera Asha Seneviratne 655791884V
Anusha Seneviratne 665661563V
2 Abi Trades Arokiaraj Ravi Premila 665804143V 3.687

No.25, I.X.Perera Street, Colombo –11.
3 Arkem Pharmaceuticals Ramasamy Sivaraj 662753491V Sivaraj 5.312

No.12 1/1, Prince Of Wales Avenue, Colombo–14.
4 Ulka Apparel Manuf. Syed Shafqat Hussain Shah 34202–8307644–5 Syed Rehm Shah Syed Fateh Shah 3.580
(P) Ltd Syed Abdullah Shah Asghar 228–91–092182 Asghar Ali Randhawa Haji
71/4–1/1, Temple Road, Nawala. Ali Randhawa Ahmed Ali 270–65–390326 Muhammad Akbar
Randhawa Ejaz Ahmed 61101–1863743–1
Chaudry Mobeen Shahzad
Chaudry
5 Rajaah's Enterprises No.143, A K Fernando 692453344V Fernando Fernando Machado 1.109

Bankshall Street, Colombo 11. M N A Fernando J F Machado 4077318V
788020031V
612.133
(Rupees in '000)
waived
689 – 2,335 – 704 – 704
– 499 46 545 – 499 46 545
– 31.797 – 31.797 – 31.797 – 31.797
3.687 64.749 – 68.436 3.687 64.749 – 68.436
5.312 62.961 – 68.273 5.312 62.961 – 68.273
3.580 15.804 – 19.384 – 15.804 – 15.804
1.109 12.465 – 13.574 1.109 12.465 – 13.574
612.133 1,400,864 8.754 2,021,751 394.525 1,400,719 8.883 1,804,127

Description Cost/ Accumu- Book value Sales pro-
revalued amount lated depreciation ceeds
Computers (Rupees in '000)

Laptop 268 268 – 54
268 268 – 54
Consolidate
Financial Statemen
MCB Bank Limit
Directors’ Report
On Consolidated Financial Statements
The Board of Directors present the report on the consolidated financial statements of MCB Bank Limited and its subsidiaries namely MCB
Savings & Investments Limited, MCB Islamic Bank Limited, Financial & Management Services (Private) Limited and MCB Non-Banking Credit Organi
Joint Stock Company for the year ended December 31, 2021.
Profit and Appropriation

The profit before and after taxation for the year ended December 31, 2021 together with appropriations is as under:
Rs. in Million
53,275
(21,947)
31,328
(148)
31.180
70,499
38
115
250
83
70.985
102.165
3,101
17,776
5,333
5,925
5,333
37.468
64.697
26.31
Profit Before Taxation
Taxation
Profit After Taxation
Profit attributable to non-controlling interest
Profit attributable to Equity shareholders of the Bank
Un-appropriated profit brought forward

Re-measurement gain on defined benefit obligations – net of tax Surplus realized on disposal of revalued fixed assets - net of tax Surplus
disposal of non-banking assets - net of tax Transfer in respect of incremental depreciation from surplus on
revaluation of fixed assets to un-appropriated profit - net of tax
Profit Available for Appropriation

Appropriations:
Statutory Reserve
Final Cash Dividend at Rs. 15.0 per share - December 31, 2020 First Interim Cash Dividend at Rs. 4.5 per share - March 31, 2021 Second Interim Cash Div
5.0 per share - June 30, 2021
Third Interim Cash Dividend at Rs. 4.5 per share - September 30, 2021
Total Appropriations
Un-appropriated Profit Carried Forward
Earnings Per Share (Rs)

For and on behalf of the Board of Directors,
Shoaib Mumtaz Shahzad Hussain
President & CEO Director
MCB Bank Limited MCB Bank Limited
February 10, 2022
53,275
(21,947)
3 1,328
(148)
31.180
70,499
38
115
250
83
70.985
102.165
3,1 01
17,776
5,333
5,925
5,333
37.468
64.697
202
Mode of disposal Particulars of buyers Location
As per Bank's policy Kamran Zafar Muggo Lahore
Consolidated
MCB Bank Limited
335
s of MCB Bank Limited and its subsidiaries namely MCB – Arif Habib
vices (Private) Limited and MCB Non-Banking Credit Organization Closed
er with appropriations is as under:

Rs. in Million
on disposal of revalued fixed assets - net of tax Surplus realized on
om surplus on
t Rs. 4.5 per share - March 31, 2021 Second Interim Cash Dividend at Rs.
Shahzad Hussain
Director
MCB Bank Limited
2022/» 10
337
rs of buyers Location
afar Muggo Lahore

INDEPENDENT AUDITOR’S REPORT
To the members of MCB Bank Limited
Opinion
We have audited the annexed consolidated financial statements of MCB Bank Limited and its subsidiaries (the Group), which comprise the consolidated sta
financial position as at December 31, 2021, and the consolidated profit and loss account, the consolidated statement of comprehensive income, the consolid
of changes in equity and the consolidated cash flow statement for the year then ended, and notes to the consolidated financial statements, includi
of significant accounting policies and other explanatory information.
In our opinion, consolidated financial statements give a true and fair view of the consolidated financial position of the Group as at December 31, 2021 and o
consolidated financial performance and its consolidated cash flows for the
year then ended in accordance with the accounting and reporting standards as applicable in Pakistan.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Pakistan. Our responsibilities under those
further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the G
accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants as adopted by the Institute of the C
Accountants of Pakistan (the Code), and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence
obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matter(s)

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the
period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, an
provide a separate opinion on these matters.
Following is the Key audit matter:

1 Provision against advances
(Refer note 3.4, note 6.5 and note 11.4 to the annexed
consolidated financial statements)
The Group makes provision against advances extended in
Pakistan on a time-based criteria that involves ensuring that all
non-performing advances are classified in accordance with the
ageing criteria specified in the Prudential Regulations (PRs)
issued by the State Bank of Pakistan (SBP).
In addition to the above time-based criteria, the PRs
require a subjective evaluation of the credit worthiness of
borrowers to determine the classification of advances.
The PRs also require the creation of general provision
for certain categories of advances.
Provision against advances of overseas branches is made as
per the requirements of the respective regulatory regimes.
REPORT
MCB Bank Limited and its subsidiaries (the Group), which comprise the consolidated statement of
rofit and loss account, the consolidated statement of comprehensive income, the consolidated statement
for the year then ended, and notes to the consolidated financial statements, including a summary
on.
air view of the consolidated financial position of the Group as at December 31, 2021 and of its
s for the
tandards as applicable in Pakistan.
ndards on Auditing (ISAs) as applicable in Pakistan. Our responsibilities under those standards are
the Consolidated Financial Statements section of our report. We are independent of the Group in
ountants’ Code of Ethics for Professional Accountants as adopted by the Institute of the Chartered
er ethical responsibilities in accordance with the Code. We believe that the audit evidence we have
inion.
ment, were of most significance in our audit of the consolidated financial statements of the current
f the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not
Our audit procedures to verify provision against advances

included, amongst others, the following:
• We obtained an understanding of the design of relevant
controls established by the Group to identify loss events and
for determining the extent of provisioning required against
non- performing advances.
The testing of controls included testing of:
• controls over correct classification of non- performing
advances on time-based criteria;
• controls over monitoring of advances with higher risk
of default and correct classification of advances on subjective
criteria;
• controls over accurate computation and recording of
provisions; and
• controls over the governance and approval process
related to provisions, including continuous reassessment by
the management.
Further, last year, several borrowers had availed the SBP
enabled deferment / restructuring and rescheduling relief
given as a result of the COVID-19 pandemic. The Group
had expected that the repayment capacity of borrowers could be
impacted due to the pandemic and had accordingly recognised
additional general provision against the domestic funded
performing credit portfolio. The provision had been
recognised based on management’s best estimate.
As at December 31, 2021, the Group holds a total provision of Rs
46,052 million against advances in the consolidated financial
statement of the Group.
The determination of provision against advances based on
the above criteria remains a significant area of judgement and
estimation. Because of the significance of the impact of these
judgements/ estimations and the materiality of advances relative
to the overall consolidated statement of financial position of
the Group, we considered the area of provision against
advances as a Key Audit Matter.
Information Other than the Consolidated and Unconsolidated Financial Statements and Auditor’s Reports Thereon
Management is responsible for the other information. The other information comprises the information included in the Annual Report, but does n
consolidated and unconsolidated financial statements and our auditor’s reports thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consid
the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwi
be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we
to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Board of Directors for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting and r
standards as applicable in Pakistan and Companies Act, 2017 and for such internal control as management determines is necessary to enable the preparati
consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, d
applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or t
operations, or has no realistic alternative but to do so.
The Board of Directors is responsible for overseeing the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, wh
fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an a
conducted in accordance with ISAs as applicable in Pakistan will always detect a material misstatement when it exists. Misstatements can arise from frau
are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the b
consolidated financial statements.
As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise professional judgment and maintain professional skepticism throughou
We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audi
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresen
override of internal controls.
• Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstanc
the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a
uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such di
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future event
conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the cons
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an op
consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for
opinion.
We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Board of Directors with a statement that we have complied with relevant ethical requirements regarding independ
communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, re
safeguards.
From the matters communicated with the Board of Directors, we determine those matters that were of most significance in the audit of the consol
financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or r
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Other Matter
The consolidated financial statements of the Group for the year ended December 31, 2020 were audited by another firm of Chartered Accountant
expressed an unqualified opinion thereon vide their report dated February 26, 2021.
The engagement partner on the audit resulting in this independent auditor’s report is Hammad Ali Ahmad.
A. F. Ferguson & Co Chartered Accountants Lahore
Date: March 7, 2022

UDIN: AR20211009261VnoGZoA
We selected a sample of loan accounts and performed
the following substantive procedures:
• checked repayments of loan / mark-up installments and
tested classification of non-performing advances based on the
number of days overdue; and
• evaluated the management’s assessment for classification
of a borrower’s loan facilities as performing or non-
performing based on review of repayment pattern, inspection
of credit documentation, discussions with the
management and management’s consideration of the impact of
COVID-19 on the borrower.
We checked the accuracy of specific provision made against
non-performing advances and of general provision made
against performing advances in accordance with the
requirements of PRs by recomputing the provision amount in
accordance with the criteria prescribed under the PRs.
We evaluated the management’s assessment with respect to
general provision on account of the COVID-19 pandemic.
We issued instructions to auditors of those overseas branches
which were selected for audit, highlighting ‘Provision against
advances’ as a significant risk. The auditors of those
branches performed audit procedures to check compliance
with regulatory requirements and reported the results thereof to
us.
We, as auditors of the Group, evaluated the work performed by
the component auditors and the results thereof.
solidated Financial Statements and Auditor’s Reports Thereon

he other information comprises the information included in the Annual Report, but does not include the
d our auditor’s reports thereon.
es not cover the other information and we do not express any
al statements, our responsibility is to read the other information and, in doing so, consider whether
the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to
performed, we conclude that there is a material misstatement of this other information, we are required
ard.
Consolidated Financial Statements

sentation of the consolidated financial statements in accordance with accounting and reporting
d for such internal control as management determines is necessary to enable the preparation of
statement, whether due to fraud or error.
ment is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as
concern basis of accounting unless management either intends to liquidate the Group or to cease
s financial reporting process.

ancial Statements
the consolidated financial statements as a whole are free from material misstatement, whether due to
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
ll always detect a material misstatement when it exists. Misstatements can arise from fraud or error and
could reasonably be expected to influence the economic decisions of users taken on the basis of these
istan, we exercise professional judgment and maintain professional skepticism throughout the audit.
consolidated financial statements, whether due to fraud or error, design and perform audit procedures
ient and appropriate to provide a basis for our opinion. The risk of not detecting a material
ng from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
the audit in order to design audit procedures that are appropriate in the circumstances, but not for
Group’s internal control.
d the reasonableness of accounting estimates and
e going concern basis of accounting and, based on the audit evidence obtained, whether a material
gnificant doubt on the Group’s ability to continue as a going concern. If we conclude that a material
or’s report to the related disclosures in the consolidated financial statements or, if such disclosures are
n the audit evidence obtained up to the date of our auditor’s report. However, future events or
concern.
the consolidated financial statements, including the disclosures, and whether the consolidated
nts in a manner that achieves fair presentation.
nancial information of the entities or business activities within the Group to express an opinion on the
ection, supervision and performance of the group audit. We remain solely responsible for our audit
other matters, the planned scope and timing of the audit

cies in internal control that we identify during our audit.
ement that we have complied with relevant ethical requirements regarding independence, and to
ers that may reasonably be thought to bear on our independence, and where applicable, related
ctors, we determine those matters that were of most significance in the audit of the consolidated
ore the key audit matters. We describe these matters in our auditor’s report unless law or regulation
extremely rare circumstances, we determine that a matter should not be communicated in our report
asonably be expected to outweigh the public interest benefits of such communication.
he year ended December 31, 2020 were audited by another firm of Chartered Accountants who
ort dated February 26, 2021.
dependent auditor’s report is Hammad Ali Ahmad.

Consolidated Statement of Financial Position
As at December 31, 2021
2021 2020
ASSETS
Cash and balances with treasury banks 7 175,922,469

Balances with other banks 8 22,554,329
Lendings to financial institutions 9 40,617,110
Investments 10 1,062,568,511
Advances 11 686,388,652
Fixed assets 12 62,351,545
Intangible assets 13 1,838,136
Deferred tax assets –
Other assets 14 69,880,727
2,122,121,479
LIABILITIES
Bills payable 16 26,486,445
Borrowings 17 282,898,882
Deposits and other accounts 18 1,534,586,671
Liabilities against assets subject to finance lease –
Subordinated debt –
Deferred tax liabilities 19 1,578,782
Other liabilities 20 99,002,039
1,944,552,819
NET ASSETS 177,568,660

REPRESENTED BY
Share capital 21 11,850,600
Reserves 22 85,043,592
Surplus on revaluation of assets - net 23 15,225,689
176,817,241
Non-controlling interest 751.419
177,568,660
The annexed notes 1 to 48 and annexures I to II form an integral part of these consolidated financial statements.
'000)
132,053,041
29,011,521
17,968,243
1,036,217,535
547,685,708
63,679,312
1,867,244
–
62,793,791
1,891,276,395
26,451,513
184,577,340
1,388,737,961
–
–
7,491,040
91,027,158
1,698,285,012
192,991,383
11,850,600
81,060,051
28,803,351
70,498,820
192,212,822
778.561
192,991,383
ements.
Shahzad Hussain
Director
Consolidated Profit and Loss Account
2021 2020
Mark-up / return / interest earned 26 132,609,303 145,772,451
Mark-up / return / interest expensed 27 64,231,302 69,929,012

Net mark-up / interest income 68,378,001 75,843,439
NON MARK-UP / INTEREST INCOME
Fee and commission income 28 13,691,432 11,971,491

Dividend income 1,955,213 969.322
Foreign exchange income 3,847,755 2,735,228
Income from derivatives 14.035 4.087
Gain / (loss) on securities 29 262.835 3,396,296
Other income 30 883.253 192.103
Total non-markup / interest Income 20,654,523 19,268,527
Total Income 89,032,524 95,111,966

NON MARK-UP / INTEREST EXPENSES
Operating expenses 31 40,589,732 37,763,917
Workers welfare fund 1,058,419 974.808
Other charges 32 525.339 297.987
Total non-markup / interest expenses 42,173,490 39,036,712
Share of profit of associates 943.587 573.078
Profit before provisions 47,802,621 56,648,332
(Reversals) / provisions and write offs - net Extra ordinary / unusual items 33 (5,472,779) 7,330,044
– –
PROFIT BEFORE TAXATION 53,275,400 49,318,288
Taxation 34 21,947,646 19,756,019

PROFIT AFTER TAXATION 31,327,754 29,562,269
Attributable to:
Equity shareholders of the Bank 31,179,708 29,410,227
Non-controlling interest 148.046 152.042

31,327,754 29,562,269
(Rupees)
Basic and diluted earnings per share attributable

to ordinary shareholders 35 26.31 24.82
2021 2020
'000)
145,772,451
69,929,012
75,843,439
11,971,491
969.322
2,735,228
4.087
3,396,296
192.103
19,268,527
95,111,966
37,763,917
974.808
297.987
39,036,712
573.078
56,648,332
7,330,044
–
49,318,288
19,756,019
29,562,269
29,410,227
152.042
29,562,269
24.82
ments.
Shahzad Hussain
Director
Consolidated Statement of Comprehensive Income
2021 2020
(Rupees in '000)
Profit after taxation for the year Other comprehensive income / (loss) 31,327,754
Items that may be reclassified to profit and loss account in subsequent periods:
Effect of translation of net investment in foreign branches and subsidiaries
- Equity shareholders of the Bank 874.022

- Non-controlling interest 29
874.051
Share of exchange translation reserve of associate 8.328
Movement in surplus/ (deficit) on revaluation of investments - net of tax

- Equity shareholders of the Bank (13,196,825)
Movement in surplus on associated undertaking - net of tax 96.189
(13,100,636)
(12,218,257)
Items that will not be reclassified to profit and loss
account in subsequent periods:
Remeasurement gain / (loss) on defined benefit obligations - net of tax 37.922
Movement in surplus on revaluation of operating fixed assets - net of tax (152.202)
Movement in surplus on revaluation of non-banking assets - net of tax 124.017
9.737
Total comprehensive income 19,119,234
Attributable to:
- Equity shareholders of the Bank 18,971,159

- Non-controlling interest 148.075
19,119,234
29,562,269
212.508
7
212.515
7.321
4,074,542
(24.823)
4,049,719
4,269,555
(342.311)
–
119.544
(222.767)
33,609,057
33,457,008
152.049
33,609,057
ents.
Shahzad Hussain
Director
Capital reserve Revenue Surplus/(deficit) on revaluation
reserve of Non
Share Share Non- Exchange Statutory General Fixed / Unappropri
Sub Total controlling
capital premium distributable translatio reserve reserve Investments Associate non- ated profit
interest
capital n reserve banking
reserve assets
(Rupees in '000)
Balance as at December 31, 2019 11,850,600 23,973,024 908.317 2,730,354 31,683,134 18,600,000
Profit after taxation for the year ended December 31, 2020 Other – – – – 219,829 – –
comprehensive income - net of tax – – – – –
– – – 219.829 – –
Transfer to statutory reserve – – – – 2,945,393 –
Transfer in respect of incremental depreciation from surplus on
revaluation of fixed assets to unappropriated profit - net of tax – – – – –
–
Surplus realized on disposal of revalued fixed assets - net of tax – – – – –
–
Surplus realized on disposal of revalued non-banking assets - net of tax – – – – –
–
Final cash dividend at Rs. 5.0 per share - December 31, 2019 – – – – – –
Interim cash dividend at Rs. 5.0 per share - March 31, 2020 – – – – – –
– – – – – – – –
Share of dividend attributable to Non-controlling interest – – – – – – – –
Profit after taxation for the year ended December 31, 2021 – – – – – –
Other comprehensive loss - net of tax – – – 882.350 – –
– – – 882.350 – –
Transfer to statutory reserve – – – – 3,101,191 –
Transfer in respect of incremental depreciation from surplus on
revaluation of fixed assets to unappropriated profit - net of tax – – – – – –
Surplus realized on disposal of revalued fixed assets - net of tax – – – – – –
Surplus realized on disposal of non-banking assets - net of tax – – – – – –
Final cash dividend at Rs. 15.0 per share - December 31, 2020 – – – – – –
Interim cash dividend at Rs. 4.5 per share - March 31, 2021 – – – – – –
Interim cash dividend at Rs. 5.0 per share - June 30, 2021 – – – – – –
Interim cash dividend at Rs. 4.5 per share - Sep 30, 2021 – – – – – –
– – – – – –
Share of dividend attributable to Non-controlling interest – – – – – –
For details of dividend declaration and appropriations, please refer note 46 to these consolidated financial statements. For details of reserves, please refer
Shoaib Mumtaz Hammad Khalid S.M. Muneer Mian Umer

President/Chief Executive Chief Financial Officer Director Direc
Grand
Total
in '000)
18,600,000 4,326,251 344.762 20,081,193 56,108,779 170,606,41 740.403 171,346,81
4 7
– – – – 119,544 29,410,227 29,410,227 152,042 29,562,269
– 4,074,54 (24,823 (342,311) 4,046,781 7 4,046,788
2 )
– 4,074,542 (24.823) 119.544 29,067,916 33,457,008 152.049 33,609,057
– – – – (2,945,393) – – –
– – – (90.800) 90.800 – – –
– – – (22.544) 22.544 – – –
– – – (4.774) 4.774 – – –
– – – – (5,925,300) (5,925,300) – (5,925,300)

– – – – (5,925,300) (5,925,300) – (5,925,300)
– – – – – (11,850,600 (11,850,600 – (11,850,600
) ) )
– – – – – – – (113.891) (113.891)
18,600,000 8,400,793 319.939 20,082,619 70,498,820 192,212,82 778.561 192,991,38
2 3
– – – – 31,179,708 31,179,708 148.046 31,327,754

– (13,196,825 96.189 (28.185) 37.922 (12,208,549 29 (12,208,520
– (13,196,825) 96.189 (28.185) 31,217,630 18,971,159) 148.075 19,119,234)
– –) – – (3,101,191) – – –
– – – (83.370) 83.370 – –
– – – (115.260) 115.260 – – –
– – – (250.211) 250.211 – – –
– – – – (17,775,900 (17,775,900 – (17,775,900

) ) )
– – – – (5,332,770) (5,332,770) – (5,332,770)
– – – – (5,925,300) (5,925,300) – (5,925,300)
– – – – (5,332,770) (5,332,770) – (5,332,770)
– – – – (34,366,740 (34,366,740 – (34,366,740
) ) )
– – – – – – (175.217) (175.217)
18,600,000 (4,796,032) 416.128 19,605,593 64,697,360 176,817,24 751.419 177,568,66
1 0
details of reserves, please refer note 22 to these consolidated financial statements.
Mian Umer Mansha Shahzad Hussain

Director Director
Consolidated Cash Flow Statement
2021 2020
CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxation 53,275,400
Less: Dividend income and share of profit of associates (2,898,800)
50,376,600
Adjustments:
Depreciation on fixed assets 12.2 2,587,352
Depreciation on right of use assets 31 1,709,613
Impairment on fixed assets –
Depreciation on non-banking assets acquired in satisfaction of claims 31 35.544
Amortization 13 480.826
Provisions / (reversals) and write offs - net 33 (5,472,779)
Workers Welfare Fund 1,058,419
Gain on sale of non-banking assets acquired in satisfaction of claims 30 (571.449)
Gain on conversion of Ijarah agreements 30 (20.761)
Charge for defined benefit plan 31.1 289.144
Gain on sale of fixed assets 30 (107.783)
(Gain) / loss on termination of lease liability against right of use assets 30 (149.129)
Unrealized Loss / (gain) on revaluation of investments classified
as held for trading 29 7.026
Interest expensed on lease liability against right-of-use assets 27 1,257,256
1,103,279
51,479,879
Lendings to financial institutions (22,648,867)
Held-for-trading securities 1,316,226
Advances (133,965,474)
Others assets (excluding advance taxation) (5,854,958)
(161,153,073)
Bills Payable 34.932
Borrowings from financial institutions 97,007,799
Deposits 145,848,710
Other liabilities (excluding current taxation) 6,448,651
249,340,092
Defined benefits paid (250.977)
Income tax paid (21,722,469)
Net cash flow from operating activities 117,693,452
CASH FLOW FROM INVESTING ACTIVITIES
Net investment in available-for-sale securities (41,999,823)
Net (investment) / divestment in held-to-maturity securities (4,886,763)
Dividends received 2,177,615
Investments in fixed assets (3,205,076)
Investments in Intangible assets (451.086)
Proceeds from sale of fixed assets 405.766
Proceeds from sale of non-banking assets acquired in satisfaction of claims 2,052,928
Effect of translation of net investment in foreign branches & subsidiaries 882.350
Net cash flow used in investing activities (45,024,089)
CASH FLOW FROM FINANCING ACTIVITIES
Dividend paid 36.1 (34,211,540)
Payment of lease liability against right-of-use-assets 36.1 (2,359,330)
Net cash flow used in financing activities (36,570,870)
Effects of exchange rate changes on cash and cash equivalents 5,341,973
Increase in cash and cash equivalents 41,440,466
Cash and cash equivalents at beginning of the year 155,353,669
Cash and cash equivalents at end of the year 36 196,794,135
1. STATUS AND NATURE OF BUSINESS
The “Group” consists of
– Holding company
MCB Bank Limited (the ‘Bank’) is a banking company incorporated in Pakistan and is engaged in commercial banking and related services. The
Bank’s ordinary shares are listed on the Pakistan stock exchange. The Bank’s Registered Office and Principal Office are situated at MCB -15 Ma
Gulberg, Lahore. The Bank operates 1,426 branches (2020: 1,418 branches) within Pakistan and 11 branches (2020: 11 branches) outside Pakista
(including the Karachi Export Processing Zone branch).
– Subsidiary companies
a) MCB - Arif Habib Savings and Investments Limited
MCB - Arif Habib Savings and Investments Limited was incorporated on August 30, 2000, as an unquoted public limited company.
During 2008, the company was listed on the Pakistan Stock Exchange by way of offer for sale of shares by a few of the existing
shareholders of the company to the general public. The registered office of the company is situated at 2nd Floor, Adamjee House, I.I
Chundrigar Road, Karachi, Pakistan.
The Company is registered as a Pension Fund Manager under the Voluntary Pension System Rules, 2005, as an Asset
Management Company and an Investment Advisor under the Non-Banking Finance Companies (Establishment and
Regulation) Rules, 2003. The Bank owns 51.33% shares of the company.
b) MCB Non-Bank Credit Organization Closed Joint Stock Company

MCB Non-banking Credit Organization Closed Joint Stock Company was incorporated on 16 October 2009 and domiciled in the Repu
of Azerbaijan. The company is a closed joint stock company limited by shares and was set up in accordance with Azerbaijani regulatio
The registered office of the company is located at 49B Tbilisi Ave. Baku AZ1065, Republic of Azerbaijan. The Bank owns 99.94% sha
of the company.
The Company’s principal business activity is provision of finance leases within the Republic of Azerbaijan. The
Company leases out various types of automotive vehicles, industrial equipment, equipment used in medicine, health ca
and for other business needs. In addition, the Company leases out cars and trucks. Further the Company is involved in real es
finance leases. During the year on November 12, 2021, the Central Bank of the Republic of Azerbaijan (CBAR) has issued n
banking credit organization (NBCO) license (BKT-42) to the Company.
c) MCB Islamic Bank Limited

MCB Islamic Bank Limited (MCBIBL) was incorporated in Pakistan as an unlisted public limited company on May 15, 2014 t
carry out the business of an Islamic Commercial Bank in accordance and in conformity with the principles of Islamic Shari’ah an
accordance with regulations and guidelines of the State Bank of Pakistan. The Securities and Exchange Commission of Pakis
granted “Certificate of Commencement of Business” to MCBIBL on January 30, 2015. MCBIBL is a wholly owned subsidiary of MCB
Bank Limited (MCB).
The State Bank of Pakistan (SBP) granted a “Certificate of Commencement of Banking Business” to MCBIBL on Septembe
2015 under Section 27 of the Banking Companies Ordinance, 1962. MCBIBL formally commenced operations as a Schedule
Islamic Commercial Bank with effect from October 15, 2015 upon receiving notification in this regard from SBP under secti
of the State Bank of Pakistan Act, 1956. Currently, MCBIBL is engaged in corporate, commercial, consumer, micro
finance, investment and retail banking activities.
MCBIBL is operating through 176 branches in Pakistan (December 31, 2020: 187 branches). The Registered Office of the B
situated at 59 Block T, Phase II, DHA, Lahore Cantt and Principal Office is situated at 14-A Main Jail Road, Gulberg, Lahor
d) Financial & Management Services (Private) Limited
Financial & Management Services (Private) Limited is fully provided subsidiary and the company is dormant and has no asset and
liability. The Members and board of directors of the Bank has approved the winding up of Financial & Management Services (Private
Limited. The Bank holds 95.90% shareholding in this subsidiary.
2. BASIS OF PRESENTATION
2.1 These consolidated financial statements include the financial statements of MCB Bank Limited and its subsidiary companies and share of the pro
reserves of associates (the “Group”).
2.2 In accordance with the directives of the Federal Government regarding the shifting of the banking system to Islamic modes, the State Ba
Pakistan has issued various circulars from time to time. Permissible forms of trade-related modes of financing include purchase of goods by bank
from their customers and immediate resale to them at appropriate profit in price on deferred payment basis. The purchases and sales arising under
these arrangements are not reflected in these consolidated financial statements as such but are restricted to the amount of facility actually
utilized and the appropriate portion of profit thereon. The Islamic Banking operations of the Group have complied with the requirements set out
under the Islamic Financial Accounting Standards issued by the Institute of Chartered Accountants of Pakistan and notified under the provisions o
Companies Act, 2017.
2.3 Key financial figures of the MCBIBL are disclosed in Annexure II to these consolidated financial
statements.
2.4 Items included in these consolidated financial statements are measured using the currency of the primary economic environment in whic
Holding Company operates. The consolidated financial statements are presented in Pak Rupees, which is the Group’s functional and presentation
currency. The amounts are rounded off to the nearest thousand.
2.5 These consolidated financial statements have been prepared in conformity with the format of financial statements prescribed by the State
Bank of Pakistan (SBP) vide BPRD Circular No. 02, dated January 25, 2018.
3. STATEMENT OF COMPLIANCE
3.1 These consolidated financial statements have been prepared in accordance with accounting and reporting standards as applicable in Pakist
The accounting and reporting standards comprise of:
– International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as are notified under the
Companies Act, 2017;
– Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan as are notified under the Companies Act
2017;
– Provisions of and directives issued under the Banking Companies Ordinance, 1962, the Companies Act, 2017; and
– Directives issued by the SBP and the Securities and Exchange Commission of Pakistan (SECP).
Whenever the requirements of the Banking Companies Ordinance, 1962, Companies Act, 2017 or the directives issued by the SBP and
SECP differ with the requirements of IFRS or IFAS, requirements of the Banking Companies Ordinance, 1962, the Companies Act, 20
and the said directives shall prevail.
The State Bank of Pakistan has deferred the applicability of International Accounting Standards 40, ‘Investment Property’ for Banking
Companies through BSD Circular No. 10 dated August 26, 2002. The Securities and Exchange Commission of Pakistan (SECP) has
deferred applicability of IFRS-7 “Financial Instruments: Disclosures” on banks through S.R.O 411(1) / 2008 dated April 28, 2008.
Accordingly, the requirements of these standards have not been considered in the preparation of these consolidated financial statements
However, investments have been classified and valued in
accordance with the requirements prescribed by the State Bank of Pakistan through various circulars. IFRS 10 Consolidated
Financial Statements was made applicable from period beginning on or after January 01, 2015 vide S.R.O 633(I)/2014 dated
10, 2014 by SECP. However, SECP has directed through S.R.O 56(I) /2016 dated January 28, 2016, that the requirements of
consolidation under section 237 of the repealed Companies Ordinance 1984 (Section 228 of Companies Act 2017) and IFRS
“Consolidated Financial Statements” is not applicable in case of investment by companies in mutual funds established under
structure. Accordingly, the requirements of these standards have not been considered in the preparation of these consolidated
The State Bank of Pakistan has deferred the applicability of IFAS 3 ‘Profit and Loss Sharing on
Deposits’, through BPRD Circular No.04 dated February 25, 2015.
3.2 Standards, interpretations and amendments to published approved accounting standards that are effective in the current year
There are certain other new standards and interpretations of and amendments to existing accounting standards that have become applic
to the Group for accounting periods beginning on or after January 1, 2021. These are considered either to not be relevant or not to have
significant impact on the Group’s consolidated financial statements.
3.3 Standards, interpretations and amendments to published approved accounting standards that are not yet effective
The following other standards, amendments and interpretations of approved accounting standards are effective for accounting periods
beginning on or after January 1, 2022:
Effective date (annual

periods beginning on or after)
Property, Plant and Equipment: Proceeds before intended
use – Amendments to IAS 16 January 1, 2022

Cost of Fulfilling an Onerous Contracts – Amendments to IAS 37 January 1, 2022 Updating a Reference t
Conceptual Framework – Amendments to IFRS 3 January 1, 2022 Classification of Liabilities as Current or Non-curre
Amendments to IAS 1 January 1, 2024 Amended by Definition of Accounting Estimates – Amendments to IAS 8
January 1, 2023 Deferred tax related to assets and liabilities arising from a single
transaction – Amendment to IAS 12 January 1, 2023
IFRS 9, Financial Instruments: Classification and Measurement, addresses recognition, classification, measurement and
derecognition of financial assets and financial liabilities. The standard has also introduced a new impairment model fo
financial assets which requires recognition of impairment charge based on an ‘Expected Credit Losses’ (ECL) approach rath
than the ‘incurred credit losses’ approach as currently followed. The ECL approach has an impact on all assets of the Group
which are exposed to credit risk.
As per the SBP’s BPRD Circular Letter no. 24 dated July 5, 2021, the applicability of IFRS 9 to banks in Pakistan has been
deferred to accounting periods beginning on or after January 1, 2022. The impact of the application of IFRS 9 in Pakistan on
Group’s financial statements is being assessed as per aforementioned circular, however, SBP’s final instructions are awaited
These consolidated financial statements have been prepared in accordance with the existing prudential regime to the extent o
Group’s domestic operations, whereas the requirements of this standard are incorporated for overseas jurisdictions where IFR
has been adopted.
Including the above, there are other new and amended standards and interpretations that are mandatory for the Gro
accounting periods beginning on or after January 1, 2022 but are considered not to be relevant or do not to have any
significant impact on the Group’s consolidated financial statements and are therefore not detailed in these consolidated finan
statements.
3.4 Critical accounting estimates and judgements
The preparation of consolidated financial statements in conformity with the approved accounting standards requires the use of certain criti
accounting estimates. It also requires the management to exercise its judgment in the process of applying the Group’s accounting policies. Estima
and judgments are continually evaluated and are based on historical experiences, including expectations of future events that are believed to be
reasonable under the circumstances. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revisi
affects only that period, or in the period of revision and future periods if the revision affects both current and future periods. The areas where vari
assumptions and estimates are significant to the Group’s financial statements or where judgment was exercised in the application of accounting
policies are as follows:
a) Classification of investments
In classifying investments, the Group follows the guidance provided in SBP circulars:
– Investments classified as ‘held for trading’, are securities which are acquired with an intention to trade by taking advantage of short term mar
interest rate movements and are to be sold within 90 days of acquisition.
– Investments classified as ‘held to maturity’ are non-derivative financial assets with fixed or determinable payments and fixed matu
In making this judgment, the Group evaluates its intention and ability to hold such investment to maturity.
– The investments other than those in associates which are not classified as ‘held for trading’ or ‘held to maturity’ are classified as ‘available fo
sale’.
b) Provision against advances

The Group reviews its loan portfolio to assess the amount of non-performing advances and provision required there against on regular basis. Whi
assessing this requirement, various factors including the delinquency in the account, financial position of the borrowers and the requirements of t
Prudential Regulations are considered.
The amount of general provision is determined in accordance with the relevant regulations and
management’s judgment as explained in note 11.4.4.
c) Impairment of ‘available for sale’ equity investments
The Group determines that ‘available for sale’ equity investments are impaired when there has been a significant or prolonged decline in the fair
below its cost. The determination of what is significant or prolonged requires judgment. In making this judgment, the Group evaluates among oth
factors, the normal volatility in share price. In addition, the impairment may be appropriate when there is an evidence of deterioration in the finan
health of the investee and sector performance, changes in technology and operational/financial cash flows.
d) Taxation
In making the estimates for income taxes currently payable by the Group, the management considers the current income tax laws and the decision
appellate authorities on certain issues in the past. Judgment is required to determine the amount of deferred tax assets that can be recognized, base
upon the likely timing and the level of future taxable profits, together with future tax planning strategies.
e) Fair value of derivatives

The fair values of derivatives which are not quoted in active markets are determined by using valuation techniques. The valuation techniques take
account the relevant underlying parameters including foreign currency involved, interest rates, yield curves, volatilities, contracts duration etc.
f) Depreciation, amortization, impairment and revaluation of operating fixed assets
The management reviews the useful lives and residual values of assets annually by considering expected pattern of economic
benefit that the management expects to drive from the item and the maximum period up to which such benefits are expected to be avail
Any change in estimates in future years might affect the carrying amounts of the respective items of assets with a corresponding effect
the depreciation charge and impairment. Such change is accounted for as change in accounting estimates in accordance with
International Accounting Standard (IAS) 8 “Accounting Policies, Changes in Accounting Estimates and Errors”. Further, the Group
estimates the revalued amount of land and buildings on a regular basis. The estimates are based on valuations carried out by independe
professional valuers under the market conditions.
g) Staff retirement benefits

Certain actuarial assumptions have been adopted as disclosed in note 38 of these consolidated financial statements for the actua
valuation of staff retirement benefit plans. Actuarial assumptions are entity’s best estimates of the variables that will determine th
ultimate cost of providing post employment benefits. Changes in these assumptions in future years may affect the liability / asset und
these plans in those years.
h) Lease term for lease liability and Right-Of-Use-Asset

The Group applies judgment to determine the lease term for some lease contracts in which it is a lessee that include renewal options. T
assessment of whether the Group is reasonably certain to exercise such options impacts the lease term, which significantly affects the
amount of lease liabilities and right-of-use assets recognized.
i) Provision and contingent assets and liabilities

Provisions are recognized when the Group has a legal or constructive obligation as a result of past events, it is probable that an outflow
resources will be required to settle the obligation and a reliable estimate of the amount can be made. Provisions are reviewed at each
Contingent assets are not recognized and are also not disclosed until an inflow of economic benefits is probable. Contingent
liabilities are not recognized and are disclosed unless the probability of an outflow of resources embodying economic benefi
remote.
4. BASIS OF MEASUREMENT
These consolidated financial statements have been prepared under the historical cost convention except that certain classes of fixed assets and non
banking assets acquired in satisfaction of claims are stated at revalued amounts and certain investments and derivative financial instruments have
marked to market and are carried at fair value. In addition, obligations in respect of staff retirement benefits and lease liabilities which have been
carried at present value and right of use assets which are initially measured at an amount equal to the corresponding lease liability and depreciated
the respective lease terms.
5. FINANCIAL RISK MANAGEMENT

These risk management policies continue to remain robust and the Group is reviewing its portfolio regularly and conducts rapid portfolio reviews
line with emerging risks.
Detailed disclosure on financial risk management has been reported in note 45 to the consolidated financial
statements.
6. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies adopted in the preparation of these consolidated financial statements are consistent with those of the previous financial y
6.1 Basis of consolidation

a) These consolidated financial statements include the financial statements of MCB Bank Limited and its subsidiary companies and share o
profit / reserves of associates are accounted for under the equity basis of accounting.
b) Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies accompanying a shareho
of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable are consi
when assessing whether the Group controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to th
Group. They are de-consolidated from the date when control ceases
/ the subsidiaries are disposed off. The assets and liabilities of subsidiary companies have been consolidated on a line by line basis based
the financial statements as at December 31, 2021 and the carrying value of investments held by the Bank is eliminated against the subsidiaries’
shareholders’ equity in these consolidated financial statement. Material intra-group balances and transactions have been eliminated.
c) Associates are all entities over which the Group has significant influence but not control or joint control. Investments in associates are
accounted for by the equity method of accounting and are initially recognised at cost, thereafter for the post-acquisition change in the Grou
share of net assets of the associate, the cumulative post-acquisition movements are adjusted in the carrying amount of the investment. Accounting
policies of the associates have been changed where necessary to ensure consistency with the policies adopted by the Group.
d) Non-controlling interest is that part of the net results of operations and of net assets of subsidiary
companies attributable to interests which are not owned by the Group.
6.2 IFRS 16 - Lease Liability & Right of Use Assets
The lease liability is initially measured at the present value of lease payments to be made over the term of the lease, discounted using the Gro
incremental borrowing rate. The lease liability is subsequently measured at amortized cost using the effective interest rate method. The
carrying amount is remeasured/adjusted if there are changes in the future cash flows or the lease term.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicab
any lease payments made at or before the commencement date. On subsequent measurement, right-of-use assets are stated at
less any accumulated depreciation / accumulated impairment losses and are adjusted for any remeasurement of the lease liability.
Right-of-use assets are depreciated on a straight line basis over the lease term as this method closely reflects the expected pattern of
consumption of future economic benefits. Carrying amount of the lease liability is derecognized upon termination of the lease contract
corresponding adjustment to right-of-use asset. Gain or loss on termination of lease contract is recognized in the consolidated profit and
account.
The Group has elected not to recognize a right-of-use asset and the corresponding lease liability for short-term leases with terms of 12
months or less and leases of low-value assets. Payments associated with these leases are recognized as an expense in the consolidated p
or loss account on a straight-line basis.
When there is a change in scope of a lease, or the consideration for a lease, that was not part of the original terms and conditions of the
is accounted for as a lease modification. The lease modification is accounted for as a separate lease if modification increase the scope o
lease by adding the right to use one or more underlying assets and the consideration for lease increases by an amount that is commensu
with the stand-alone price for the increase in scope adjusted to reflect the circumstances of the particular contracts, if any. When the lea
modification is not accounted for as a separate lease, the lease liability is remeasured and corresponding adjustment is made to right-of
asset.
6.3 Investments
The Group classifies its investments as follows:
Held for trading
These are securities, which are either acquired for generating profit from short-term fluctuations in market prices, interest rate moveme
dealers 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 maturity in respect of which the Group has the positive in
and ability to hold to maturity.
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
Investments are initially recognized at cost which in case of investments other than ‘held for trading’ include transaction cos
associated with the investment. Transaction costs on investments held for trading are expensed in the profit and loss account
All purchases and sales of investments that require delivery within the time frame established by regulation or mark
convention are recognized at the trade date. Trade date is the date on which the Group commits to purchase or sell the invest
Subsequent measurement
In accordance with the requirements of the State Bank of Pakistan, quoted securities, other than those classified as ‘held to
maturity’, investments in subsidiaries and investments in associates are subsequently re-measured to market value. Surplus /
deficit arising on revaluation of quoted securities which are classified as ‘available for sale’, is taken to surplus / deficit on
revaluation of investments through statement of comprehensive income in equity till disposal at which time it is recorded in
and loss account. Surplus / deficit arising on revaluation of quoted securities which are classified as ‘held for trading’, is take
the profit and loss account, currently.
Unquoted equity securities (excluding investments in subsidiaries and associates) are valued at the lower of cost and break-u
value. Break-up value of equity securities is calculated with reference to the net assets of the investee company as per the lat
available financial statements. Investments classified as ‘held to maturity’ are carried at amortized cost less accumulated
impairment losses, if any.
Investment in Associates
Investment in associates are accounted for using the equity method of accounting, after initially being recognised at cost.
Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to recognise th
Group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the Group’s share of movements in
other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associat
and joint ventures are recognised as a reduction in the carrying amount of the investment.
Impairment
Provision for impairment in the values of securities (except debentures, participation term certificates and term finance
certificates) is made currently. Impairment of ‘available for sale’ equity investments is discussed in 4.2(c). Provisions for
impairment in value of debentures, participation term certificates and term finance certificates are made as per the requireme
of the Prudential Regulations issued by the State Bank of Pakistan.
Impairment against investment in associates is assessed as per the requirements of IAS 36.
6.4 Sale and repurchase agreements
Securities sold subject to a repurchase agreement (repo) are retained in these consolidated financial statements as investments and the counter
liability is included in borrowings. Securities purchased under an agreement to resell (reverse repo) are not recognized in these
consolidated financial statements as investments and the amount extended to the counter party is included in lendings to financial institutions. Th
difference between the purchase / sale and re-sale / re-purchase price is recognized as mark-up income / expense on a time proportion basis, as th
may be.
6.5 Advances
Advances are stated net of specific and general provisions. Specific provision is determined on the basis of the Prudential Regulations and other
directives issued by the State Bank of Pakistan (SBP) and charged to the profit and loss account. Provisions are held against identified as well as
unidentified losses. Provisions against unidentified losses include general provision against Consumer and Small Enterprise (SEs) loans made in
accordance with the requirements of the Prudential Regulations issued by SBP and provision based on historical loss experience on advances. Ge
provisions pertaining to overseas advances are made in accordance with the requirements of the regulatory authorities of the respective countries.
Advances are written off when there is no realistic prospect of recovery.
Leases where the Group transfers substantially all the risks and rewards incidental to ownership of an asset to the lessee are classified a
finance leases. A receivable is recognized at an amount equal to the present value of the lease payments including any guaranteed resid
value. Finance lease receivables are included in advances to the customers.
In Murabaha transactions, the Group purchases the goods through its agent or client and after taking the possession, sells them
the customer on cost plus profit basis either in a spot or credit transaction. Under Murabaha financing, funds disbursed for purchas
goods are recorded as ‘Advance against Murabaha finance’. On culmination of Murabaha i.e. sale of goods to customers, Murabaha
financing are recorded at the deferred sale price. Goods purchased but remaining unsold at the statement of financial position date are
recorded as inventories.
The Group values its inventories at the lower of cost and net realizable value. The net realizable value is the estimated selling price in t
ordinary course of business less the estimated cost necessary to make the sale. Cost of inventories represents actual purchases made by
Group / customers as the agent of the Group for subsequent sale.
In Ijarah financing, the Group provides the asset on pre-agreed rentals for specific tenors to the customers. Ijarah assets are st
at cost less depreciation and are disclosed as part of ‘Islamic financing and related assets’. The rental on Ijarah under Islamic Financial
Accounting Standard - 2 Ijarah (IFAS 2) are recorded as income / revenue. The Group charges depreciation from the date of recognitio
Ijarah of respective assets to Mustajir. Ijarah assets are depreciated over the period of Ijarah using the straight line method. Impairment
Ijarah assets is determined in accordance with the Prudential Regulations issued by the SBP.
In Diminishing Musharaka based financing, the Group enters into Musharaka based on Shirkat-ul-Milk for financing and agreed share
fixed assets (example: house, land, plant, machinery or vehicle) with its customers and enters into period profit payment agreement for
utilization of the Group’s Musharaka share by the customer.
In Istisna financing, the Group acquires the described goods to be manufactured by the customer from raw material of its own and deliv
the Group within an agreed time. The goods are then sold and the amount financed is received back by the Group along with profit.
In Salam financing, the Group pays full in advance to its customer for buying specified goods / commodities to be delivered
Group within an agreed time. The goods are then sold and the amount financed is received back by the Group along with profit.
In Running Musharaka based financing, the Group enters into financing with the customer based on Shirkat-ul-Aqd or Business Partne
in the customer’s operating business where the funds can be withdrawn or refunded during the Musharakah period.
6.6 Fixed assets and depreciation

Fixed assets other than land and buildings are stated at cost less accumulated depreciation and accumulated impairment losses, if any.
Buildings are carried at revalued amount less any accumulated depreciation and subsequent impairment losses, if any. Land is carried a
revalued amount less any subsequent impairment losses, if any. Cost of property and equipment of foreign operations includes exchang
differences arising on currency translation at year-end rates.
Capital work-in-progress is stated at cost less accumulated impairment losses, if any. These are
transferred to specific assets as and when assets become available for use.
Depreciation on all fixed assets (excluding land) is charged using the straight line method in accordance with the rates specif
note 12.2 to these consolidated financial statements and after taking into account residual value, if any. The residual values,
lives and depreciation methods are reviewed and adjusted, if appropriate, at each reporting date.
Depreciation on additions is charged from the month the assets are available for use while no
depreciation is charged in the month in which the assets are disposed off.
Land and buildings are revalued by independent, professionally qualified valuers with sufficient regularity to ensure t
their net carrying amount does not differ materially from their fair value. An increase arising on revaluation is credited to the
surplus on revaluation of fixed assets account. A decrease arising on revaluation of fixed assets is adjusted against the surplu
that asset or, if no surplus exists, is charged to the profit and loss account as an impairment of the asset. A surplus arising
subsequently on an impaired asset is reversed through the consolidated profit and loss account up to the extent of the origina
impairment.
Surplus on revaluation of fixed assets (net of associated deferred tax) to the extent of the incremental
depreciation charged on the related assets is transferred to unappropriated profit.
Gains / losses on sale of property and equipment are credited / charged to the consolidated profit and loss account currently,
except that the related surplus on revaluation of land and buildings (net of deferred taxation) is transferred directly to
unappropriated profit.
Subsequent costs are included in the asset’s carrying amount or are recognized as a separate asset, as appropriate, only when
probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measu
reliably. All other repairs and maintenance are charged to the consolidated profit and loss account.
6.6.1 Intangible assets

Intangible assets are stated at cost less accumulated amortization and accumulated impairment losses, if any. Intangible assets ar
amortized from the month when these assets are available for use, using the straight line method, whereby the cost of the intangible ass
are amortized over its estimated useful lives over which economic benefits are expected to flow to the Group. The useful lives are revie
and adjusted, if appropriate, at each reporting date.
6.7 Impairment
The carrying amount of assets are reviewed at each reporting date for impairment whenever events or changes in circumstances indicat
the carrying amounts of the 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 amounts. The resulting impairment loss is taken to the consolidated pr
and loss account except for impairment loss on revalued assets, which is adjusted against the related revaluation surplus to the extent th
impairment loss does not exceed the surplus on revaluation of that asset.
6.8 Staff retirement benefits

MCB Bank Limited (Holding Company)
The Bank operates the following staff retirement benefits for its employees:
a) For clerical / non-clerical staff who did not opt for the new scheme, the Bank operates the following:
– an approved contributory provident fund;
– an approved gratuity scheme; and
– a contributory benevolent scheme
b) For clerical / non-clerical staff who joined the Bank after the introduction of the new scheme and for others who opted for the new schem
introduced in 1975, the Bank operates the following:
– an approved pension fund; and
– contributory benevolent scheme
c) For officers who joined the Bank after the introduction of the new scheme and for others who opted for the new scheme introduced in 19
the Bank operates the following:
– an approved pension fund, and
– contributory benevolent fund.
However, the management has replaced the pension benefits for employees in the officer category
with a contributory provident fund for services rendered after December 31, 2003.
d) For executives and officers who joined the Bank on or after January 01, 2000, the Bank operates an
approved contributory provident fund.
e) Post retirement medical benefits to entitled employees.
Annual contributions towards the defined benefit plans and schemes are made on the basis of actuarial advice using the Projec
Unit Credit Method. The above benefits are payable to staff at the time of separation from the Bank’s services subject to the completio
qualifying period of service. Actuarial gains / losses arising from experience adjustments and changes in actuarial assumptions are
recognized in other Comprehensive Income in the period of occurrence.
Past service cost is the change in the present value of the defined benefit obligation resulting from a plan amendment or curtailment. Th
Bank recognizes past service cost as an expense at the earlier of the following dates:
(i) when the plan amendment or curtailment occurs; and
(ii) when the Bank recognizes related restructuring costs or termination benefits.
Employees’ compensated absences

Liability in respect of employees’ compensated absences is accounted for in the year in which these are earned on the basis of actuarial
valuation carried out using the Projected Unit Credit Method. Actuarial gains / losses arising from experience adjustments and changes
actuarial assumptions are recognized in Consolidated Profit and Loss account in the period of occurrence.

MCBIBL operates a recognised contributory provident fund scheme for all its permanent employees. Equal monthly contributions are m
both by the Bank and its permanent employees, to the Fund at
the rate of 8.33% of the basic salaries of employees. However, an employee has an option to increase his/her contribution up
15% but the Bank will still contribute 8.33% of the employee’s basic salary. The Bank has no further payment obligation on
contributions have been paid. The contributions are recognised as employee benefit expense when they are due.
6.9 Taxation
Current and prior years
Provision for current taxation is based on taxable income at the current rates of taxation after taking into consideration available tax cre
and rebates. The charge for current tax also includes adjustments where considered necessary, relating to prior years which arise from
assessments framed / finalized during the year.
Deferred
Deferred tax is recognized using the balance sheet liability method on all temporary differences between the amount
attributed to assets and liabilities for financial reporting purposes and amounts used for taxation purposes. The Bank records
deferred tax assets / liabilities using the tax rates, enacted or substantively enacted by the reporting date expected to be applic
at the time of its reversal. Deferred tax asset is recognized only to the extent that it is probable that future taxable profits will
available against which the asset can be utilized. Deferred tax assets are reduced to the extent that it is no longer probable tha
related tax benefit will be realized. The Group also recognizes deferred tax asset / liability on deficit / surplus on revaluation
securities and deferred tax liability on surplus on revaluation of fixed assets which is adjusted against the related deficit / sur
in accordance with the requirements of International Accounting Standard (IAS) 12, ‘Income Taxes’.
Deferred tax liability is not recognized in respect of taxable temporary differences associated with exchange translation reser
of foreign operations and subsidiary, where the timing of the reversal of the temporary difference can be controlled and it is
probable that the temporary differences will not reverse in the foreseeable future.
6.10 Provisions
Provisions are recognized when the Group has a legal or constructive obligation as a result of past events and it is probable that an outf
of resources will be required to settle the obligation and a reliable estimate of the amount can be made. Provisions are reviewed at each
6.11 Foreign currencies

6.11.1 Foreign currency transactions
Transactions in foreign currencies other than the results of foreign operations discussed in note
6.11.2 are translated to Pak Rupees at the foreign exchange rates prevailing on the transaction date. Monetary assets and liabilities in fo
currencies are expressed in Rupee terms at the rates of exchange prevailing at the reporting date. Forward foreign exchange contracts a
valued at the rates applicable to their respective maturities.
6.11.2 Foreign operations

The assets and liabilities of foreign branches are translated to Pak Rupees at exchange rates prevailing at the statement of finan
position date. The results of foreign operations and subsidiary are translated to Rupees at the average rate of exchange for the year.
6.11.3 Translation gains and losses

Translation gains and losses are included in the profit and loss account, except those arising on the translation of the Group’s net invest
in foreign branches and subsidiary, which are taken to the capital reserve (exchange translation reserve) until the disposal of the net
investment, at which time these are recognized in the consolidated profit and loss account.
6.11.4 Commitments
Commitments for outstanding forward foreign exchange contracts are disclosed in these consolidated financial statements at committed amounts.
Contingent liabilities / commitments for letters of credit and letters of guarantee denominated in foreign currencies are expressed in Pak Rupee te
at the rates of exchange prevailing at the statement of financial position date.
6.12 Acceptances
Acceptances comprise undertakings by the Group to pay bills of exchange drawn on customers. The Group expects most acceptances to be
simultaneously settled with the reimbursement from the customers.
6.13 Revenue recognition
– Mark-up / interest on advances and returns on investments are recognized on a time proportion basis using the effective interest method e
that mark-up / interest on non-performing advances and investments is recognized on a receipt basis, in accordance with the requirements of t
Prudential Regulations issued by the State Bank of Pakistan (SBP) or as permitted by the regulations of the overseas regulatory authorities of cou
where the branches operate. Where debt securities are purchased at premium or discount, such premium / discount is amortized through the profit
loss account over the remaining period of maturity.
– Financing method is used in accounting for income from lease financing. Under this method, the unearned lease income (excess of the sum of
lease rentals and estimated residual value over the cost of leased assets) is deferred and taken to income over the term of the lease period so as to
produce a constant periodic rate of return on the outstanding net investment in lease. Gains / losses on termination of lease contracts are recogniz
income when these are realized.
– Fee, brokerage and commission income is recognised on an accrual basis.
– Dividend income is recognized when the Group’s right to receive dividend is established.
– Gain / loss on sale of investments is credited / charged to profit and loss account.
– Profit on Salam financing is recognised on accrual basis.
– Profit on Running Musharaka financing is booked on an accrual basis and is subject to adjustment (if any) upon declaration of profit by
Musharakah partners.
– Rental income from Ijarah financing is recognised on an accrual basis. Depreciation on Ijarah asset is charged to income (net of with rental
income) over the period of Ijarah using the straight line method.
– Profit from Bai-Mua’jjal is recognised on an accrual basis.
– Profit on Diminishing Musharaka is recognised on an accrual basis.
– Profit on Istisna financing is recognised on accrual basis.
– Profit from Musharaka placements with financial institutions is recognised on accrual basis.
– Profit from Murabaha financing is accounted for on culmination of Murabaha transaction. Profit on Murabaha is recognised on an accrual bas
Profit on Murabaha transactions for the period from the date of disbursement to the date of culmination of Murabaha is recognised immediately o
later date.
– Revenue for acting as trustee is recognized on Net Assets Value (NAV) of respective funds.
– Management / advisory fee is calculated on a daily / monthly basis by charging specified rates to the net assets value / income of the Collectiv
Investment Schemes. Advisory fee from the discretionary portfolio is calculated in accordance with the respective agreements with the clie
Management fee from the pension funds is calculated by charging the specified rates to the average net assets value.
– Revenue from trusteeship and custodian is recognised when the Group satisfies a performance obligation by rendering promised services as p
respective agreements.
The income on Islamic financing is recognised in accordance with the principles of Islamic Shari’ah and in
accordance with regulations and guidelines of the State Bank of Pakistan. However, income, if any, received whic
does not comply with the principles of Islamic Shari’ah is recognised as charity payable if so directed by the Shari’ah Bo
of the Group.
6.14 Assets acquired in satisfaction of claims
Non-Banking Assets (NBA) acquired in satisfaction of claims are carried at revalued amounts less accumulated depreciation and
impairment loss. 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 revaluat
of non banking assets’ account through statement of comprehensive income in equity and any deficit arising on revaluation is taken to
consolidated profit and loss account directly. Legal fees, transfer costs and direct costs of acquiring title to property are charged to
consolidated profit and loss account and not capitalized.
6.15 Cash and cash equivalents

Cash and cash equivalents include cash and balances with treasury banks and balances with other banks (net of overdrawn Nostro balan
in current and deposit accounts.
6.16 Financial instruments

6.16.1 Financial assets and financial liabilities
Financial instruments carried on the statement of financial position include cash and balances with treasury banks, balances with other
banks, lendings to financial institutions, investments, advances, other assets, bills payable, borrowings, deposits and other liabiliti
The particular recognition methods adopted for significant financial assets and financial liabilities are disclosed in the individual polic
statements associated with these assets and liabilities.
6.16.2 Derivative financial instruments

Derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are
subsequently remeasured at their fair value using valuation techniques. All the derivative financial instruments are carried as an asset w
the fair value is positive and as a liability when the fair value is negative. Any change in the fair value of derivative financial instrumen
taken to the consolidated profit and loss account currently.
6.16.3 Off setting

Financial assets and financial liabilities are off set and the net amount is reported in these consolidated financial statements when there
legally enforceable right to set off and the Group intends either to settle on a net basis, or to realize the assets and settle the liabilities,
simultaneously.
6.17 Borrowings / deposits

Borrowings / deposits are recorded at the proceeds received. The cost of borrowings / deposits is recognized as an expense in the perio
which this is incurred.
Deposits, with respect to Islamic Banking operations, are generated on the basis of two modes i.e.
Qard and Mudaraba.
Deposits taken on Qard basis are classified as ‘Current accounts’ and Deposits generated on Mudaraba basis are clas
as ‘Savings deposits’ or ‘Fixed deposits’. No profit or loss is passed to current account depositors.
Profits realized in investment pools are distributed in pre-agreed profit sharing ratio. Rab-ul-Maal share is distributed
among depositors according to weightages assigned at the inception of profit calculation period.
ofits are dPirstributed from the pool such that the depositors (remunerative) only bear the risk of
assets in the pool during the profit calculation period. In case of loss in a pool during the profit calculation period, the loss is distribute
among the depositors (remunerative) according to their ratio of Investments.
Asset pools may be created at the Group’s discretion and the Group may add, amend, and transfer
an asset to any other pool in the interests of the deposit holders.
6.18 Segment reporting
A segment is a distinguishable component of the Group that is engaged in providing products or services (business segment) or in
providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that a
different from those of other segments. The Group’s primary format of reporting is based on business segments.
6.18.1 Business segments
Retail banking
This includes retail lending and deposits, banking services, cards and branchless banking.
Corporate banking
This comprises of loans, deposits, project financing, trade financing, investment banking and other banking activities / with Group’s
corporate and public sector customers.
Consumer Banking
This segment primarily constitutes consumer financing activities with individual customers of the Group. Product suite offered t
these customers include credit cards, auto loans, housing finance and personal loans.
Islamic Banking
This segment includes Islamic Banking operations of the Group.
Treasury
This includes fixed income, equity, foreign exchange, credit, funding, own position securities, lendings and borrowings and derivatives
hedging and market making.
Assets Management
It includes asset management, investment advisory, portfolio management, equity research and underwriting.
International Banking
This comprises of loans, deposits, project financing, trade financing, investment banking and other banking activities by Group’s over
operations.
Others
This includes the head office related activities and other functions which cannot be classified in any of the above segments.
6.18.2 Geographical segments

The Group operates in four geographic regions being:
– Pakistan
– South Asia
– Middle East
– Eurasia
6.19 Dividend distribution and appropriation

Dividends (including bonus dividend) and other appropriations (except appropriations which are required by law) are recognized
the period in which these are approved.
6.20 Business combination

Business combinations other than under common control transaction are accounted for by applying the acquisition method. The cost of
acquisition is measured as the fair value of assets given, equity instruments issued and the liabilities incurred or assumed at the date of
acquisition. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration
arrangement, if any. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabil
assumed in a business combination are measured initially at their fair values at the acquisition date. The excess of the consideration
transferred over the fair value of the identifiable net assets acquired is recorded as goodwill. If this is less than the fair value of the net
acquired in the case of a bargain purchase, the difference is recognized directly in the consolidated profit and loss account or as directe
the SBP.
6.21 Earnings per share

The Group presents basic and diluted earnings per share (EPS). Basic EPS is calculated by dividing the profit or loss attributable to ord
shareholders of the Group by the weighted average number of ordinary shares outstanding during the year.
6.22 Pool Management
The Group operates general and specific pools for deposits and inter-Group funds accepted / acquired under Mudaraba, Musha
and Wakala modes.
Under the general deposits pool, the Group accepts funds on Mudaraba basis from depositors (Rabb-ul-Maal) where
Group acts as Manager (Mudarib) and invests the funds in the Shari’ah Compliant modes of financings, investments and
placements. When utilising investing funds, the Group prioritizes the funds received from depositors over the funds gener
from own sources.
Specific pools may be operated for funds acquired / accepted from the State Bank of Pakistan and other Groups f
Islamic Export Refinance to Group’s customers and liquidity management respectively under the Musharaka / Mudarab
modes. The Group also maintains an Equity Pool which consists of Group’s equity and funds accepted on Qard (non-
remunerative current deposit account) basis.
The profit of each deposit pool is calculated on all the remunerative assets booked by utilizing the funds from the pool afte
deduction of expenses directly incurred in earning the income of such pool, if any. The directly related costs comprise
depreciation on Ijarah assets, takaful premium, documentation charges etc. No general or administrative nature of expense is
charged to pool. No provision against any non-performing asset of the pool is passed on to the pool except on the actual loss
write-off of such non-performing asset. The profit of the pool is shared between equity and other members of the pool on the
of Musharaka at gross level (before charging of Mudarib fee) as per the investment ratio of the equity. The profit of the pool
shared among the members of the pool on pre-defined mechanism based on the weightages announced before the profit
calculation period after charging of Mudarib fee.
The deposits and funds accepted under the above mentioned pools are provided to diversified sectors and avenues of
economy / business as mentioned in the notes and are also invested in Government of Pakistan backed Ijarah Sukuks. Staff
financings are exclusively financed from the equity pool.
The risk characteristic of each pool mainly depends on the assets and liability profile of each pool.
2021 2020
'000)
49,318,288
(1,542,400)
47,775,888
2,403,220
1,697,826
4.269
30.049
469.860
7,330,044
974.808
(3.976)
(63.290)
74.827
(73.164)
15.637
(110.269)
1,495,614
14,245,455
62,021,343
(11,907,374)
8,244,331
(6,724,193)
9,319,674
(1,067,562)
13,656,188
92,691,055
162,144,936
(18,845,300)
249,646,879
(302.940)
(16,309,576)
293,988,144
(297,967,382)
17,593,419
1,161,822
(3,051,399)
(358.181)
191.342
39.000
99.694
212.515
(282,079,170)
(11,872,206)
(2,327,634)
(14,199,840)
1,595,436
(695.430)
161,391,072
160,695,642
ements.
Shahzad Hussain
Director
in commercial banking and related services. The
and Principal Office are situated at MCB -15 Main
11 branches (2020: 11 branches) outside Pakistan
2000, as an unquoted public limited company.

f offer for sale of shares by a few of the existing
ny is situated at 2nd Floor, Adamjee House, I.I
y Pension System Rules, 2005, as an Asset

king Finance Companies (Establishment and
d on 16 October 2009 and domiciled in the Republic

s set up in accordance with Azerbaijani regulations.
public of Azerbaijan. The Bank owns 99.94% shares
ses within the Republic of Azerbaijan. The

quipment, equipment used in medicine, health care,
rucks. Further the Company is involved in real estate
the Republic of Azerbaijan (CBAR) has issued non-
isted public limited company on May 15, 2014 to

ity with the principles of Islamic Shari’ah and in
Securities and Exchange Commission of Pakistan
5. MCBIBL is a wholly owned subsidiary of MCB
of Banking Business” to MCBIBL on September 14,

BL formally commenced operations as a Scheduled
g notification in this regard from SBP under section 37
ed in corporate, commercial, consumer, micro
0: 187 branches). The Registered Office of the Bank is

situated at 14-A Main Jail Road, Gulberg, Lahore.
company is dormant and has no asset and
of Financial & Management Services (Private)
and its subsidiary companies and share of the profit /
he banking system to Islamic modes, the State Bank of

s of financing include purchase of goods by banks
ment basis. The purchases and sales arising under
e restricted to the amount of facility actually
oup have complied with the requirements set out
nts of Pakistan and notified under the provisions of the
solidated financial
cy of the primary economic environment in which the

which is the Group’s functional and presentation
mat of financial statements prescribed by the State
g and reporting standards as applicable in Pakistan.
ndards Board (IASB) as are notified under the
Pakistan as are notified under the Companies Act,
panies Act, 2017; and
Act, 2017 or the directives issued by the SBP and the

mpanies Ordinance, 1962, the Companies Act, 2017
Standards 40, ‘Investment Property’ for Banking

Exchange Commission of Pakistan (SECP) has
gh S.R.O 411(1) / 2008 dated April 28, 2008.
aration of these consolidated financial statements.
through various circulars. IFRS 10 Consolidated
r January 01, 2015 vide S.R.O 633(I)/2014 dated July
dated January 28, 2016, that the requirements of
(Section 228 of Companies Act 2017) and IFRS-10
by companies in mutual funds established under Trust
onsidered in the preparation of these consolidated
‘Profit and Loss Sharing on
standards that are effective in the current year

ng accounting standards that have become applicable
considered either to not be relevant or not to have any
standards that are not yet effective

g standards are effective for accounting periods
January 1, 2022
January 1, 2022 Updating a Reference to the
assification of Liabilities as Current or Non-current –
Accounting Estimates – Amendments to IAS 8
a single
January 1, 2023
ecognition, classification, measurement and

has also introduced a new impairment model for
n ‘Expected Credit Losses’ (ECL) approach rather
pproach has an impact on all assets of the Group
cability of IFRS 9 to banks in Pakistan has been

mpact of the application of IFRS 9 in Pakistan on the
ar, however, SBP’s final instructions are awaited.
with the existing prudential regime to the extent of the

incorporated for overseas jurisdictions where IFRS 9
interpretations that are mandatory for the Group’s

sidered not to be relevant or do not to have any
therefore not detailed in these consolidated financial
ounting standards requires the use of certain critical
applying the Group’s accounting policies. Estimates
ctations of future events that are believed to be
od in which the estimates are revised if the revision
h current and future periods. The areas where various
was exercised in the application of accounting
on to trade by taking advantage of short term market /
xed or determinable payments and fixed maturity.

nt to maturity.
or ‘held to maturity’ are classified as ‘available for
ision required there against on regular basis. While

sition of the borrowers and the requirements of the
regulations and
een a significant or prolonged decline in the fair value

ng this judgment, the Group evaluates among other
n there is an evidence of deterioration in the financial
ash flows.
ders the current income tax laws and the decisions of

of deferred tax assets that can be recognized, based
rategies.
luation techniques. The valuation techniques take into

ield curves, volatilities, contracts duration etc.
sets
y by considering expected pattern of economic
up to which such benefits are expected to be available.
ective items of assets with a corresponding effect on
ge in accounting estimates in accordance with
unting Estimates and Errors”. Further, the Group
are based on valuations carried out by independent
se consolidated financial statements for the actuarial

timates of the variables that will determine the
in future years may affect the liability / asset under
hich it is a lessee that include renewal options. The

ts the lease term, which significantly affects the
esult of past events, it is probable that an outflow of

t can be made. Provisions are reviewed at each
ow of economic benefits is probable. Contingent

utflow of resources embodying economic benefits is
except that certain classes of fixed assets and non-

tments and derivative financial instruments have been
ent benefits and lease liabilities which have been
o the corresponding lease liability and depreciated over
io regularly and conducts rapid portfolio reviews in
consolidated financial
consistent with those of the previous financial year:
Limited and its subsidiary companies and share of the

and operating policies accompanying a shareholding
rights that are currently exercisable are considered
rom the date on which control is transferred to the
e been consolidated on a line by line basis based on

he Bank is eliminated against the subsidiaries’
transactions have been eliminated.
l or joint control. Investments in associates are

eafter for the post-acquisition change in the Group’s
he carrying amount of the investment. Accounting
icies adopted by the Group.
subsidiary
e term of the lease, discounted using the Group’s

using the effective interest rate method. The
term.
of the lease liability, adjusted for, as applicable,

measurement, right-of-use assets are stated at cost
for any remeasurement of the lease liability.
method closely reflects the expected pattern of

ecognized upon termination of the lease contract with
ntract is recognized in the consolidated profit and loss
e liability for short-term leases with terms of 12

re recognized as an expense in the consolidated profit
ot part of the original terms and conditions of the lease

eparate lease if modification increase the scope of
or lease increases by an amount that is commensurate
es of the particular contracts, if any. When the lease
and corresponding adjustment is made to right-of- use
uctuations in market prices, interest rate movements,

m profit taking exists.
y in respect of which the Group has the positive intent
do not fall under the ‘held for trading’ or ‘held to
her than ‘held for trading’ include transaction costs

ading are expensed in the profit and loss account.
e time frame established by regulation or market

the Group commits to purchase or sell the investment.
ecurities, other than those classified as ‘held to

sequently re-measured to market value. Surplus /
vailable for sale’, is taken to surplus / deficit on
quity till disposal at which time it is recorded in profit
s which are classified as ‘held for trading’, is taken to
iates) are valued at the lower of cost and break-up

net assets of the investee company as per the latest
re carried at amortized cost less accumulated
unting, after initially being recognised at cost.
ised at cost and adjusted thereafter to recognise the

fit or loss, and the Group’s share of movements in
e. Dividends received or receivable from associates
he investment.
icipation term certificates and term finance

estments is discussed in 4.2(c). Provisions for
finance certificates are made as per the requirements
ents of IAS 36.
ial statements as investments and the counter party

verse repo) are not recognized in these
included in lendings to financial institutions. The
ncome / expense on a time proportion basis, as the case
he basis of the Prudential Regulations and other
Provisions are held against identified as well as
sumer and Small Enterprise (SEs) loans made in
sed on historical loss experience on advances. General
regulatory authorities of the respective countries.
ownership of an asset to the lessee are classified as

he lease payments including any guaranteed residual
client and after taking the possession, sells them to

rabaha financing, funds disbursed for purchase of
abaha i.e. sale of goods to customers, Murabaha
ld at the statement of financial position date are
realizable value is the estimated selling price in the

inventories represents actual purchases made by the
ific tenors to the customers. Ijarah assets are stated

ets’. The rental on Ijarah under Islamic Financial
charges depreciation from the date of recognition of
Ijarah using the straight line method. Impairment of
e SBP.
n Shirkat-ul-Milk for financing and agreed share of

d enters into period profit payment agreement for the
e customer from raw material of its own and deliver to

received back by the Group along with profit.
specified goods / commodities to be delivered to the

ived back by the Group along with profit.
omer based on Shirkat-ul-Aqd or Business Partnership

uring the Musharakah period.
tion and accumulated impairment losses, if any.

quent impairment losses, if any. Land is carried at
equipment of foreign operations includes exchange
losses, if any. These are
ht line method in accordance with the rates specified in

count residual value, if any. The residual values, useful
each reporting date.
vailable for use while no
ed valuers with sufficient regularity to ensure that

n increase arising on revaluation is credited to the
ation of fixed assets is adjusted against the surplus of
an impairment of the asset. A surplus arising
it and loss account up to the extent of the original
extent of the incremental

rofit.
he consolidated profit and loss account currently,
eferred taxation) is transferred directly to
zed as a separate asset, as appropriate, only when it is

the Group and the cost of the item can be measured
profit and loss account.
ed impairment losses, if any. Intangible assets are

ne method, whereby the cost of the intangible assets
ed to flow to the Group. The useful lives are reviewed
never events or changes in circumstances indicate that

d where the carrying value exceeds the estimated
ng impairment loss is taken to the consolidated profit
nst the related revaluation surplus to the extent that the
he following:
heme and for others who opted for the new scheme
rovident fund;
s who opted for the new scheme introduced in 1977,
rovident fund;
cer category
k operates an
on the basis of actuarial advice using the Projected

rom the Bank’s services subject to the completion of
nts and changes in actuarial assumptions are
sulting from a plan amendment or curtailment. The
n which these are earned on the basis of actuarial

arising from experience adjustments and changes in
eriod of occurrence.
ent employees. Equal monthly contributions are made
has an option to increase his/her contribution upto

. The Bank has no further payment obligation once the
benefit expense when they are due.
on after taking into consideration available tax credits

cessary, relating to prior years which arise from
n all temporary differences between the amounts

nts used for taxation purposes. The Bank records
nacted by the reporting date expected to be applicable
t that it is probable that future taxable profits will be
uced to the extent that it is no longer probable that the
asset / liability on deficit / surplus on revaluation of
which is adjusted against the related deficit / surplus
IAS) 12, ‘Income Taxes’.
rences associated with exchange translation reserves
temporary difference can be controlled and it is
uture.
esult of past events and it is probable that an outflow

unt can be made. Provisions are reviewed at each
iscussed in note
nsaction date. Monetary assets and liabilities in foreign
orting date. Forward foreign exchange contracts are
xchange rates prevailing at the statement of financial

s at the average rate of exchange for the year.
rising on the translation of the Group’s net investment

anslation reserve) until the disposal of the net
ount.
dated financial statements at committed amounts.

foreign currencies are expressed in Pak Rupee terms
The Group expects most acceptances to be

ion basis using the effective interest method except
pt basis, in accordance with the requirements of the
ions of the overseas regulatory authorities of countries
remium / discount is amortized through the profit and
, the unearned lease income (excess of the sum of total

income over the term of the lease period so as to
ses on termination of lease contracts are recognized as
tment (if any) upon declaration of profit by
h asset is charged to income (net of with rental
ofit on Murabaha is recognised on an accrual basis.

ination of Murabaha is recognised immediately on the
es to the net assets value / income of the Collective

e with the respective agreements with the clients.
age net assets value.
ce obligation by rendering promised services as per
h the principles of Islamic Shari’ah and in

Pakistan. However, income, if any, received which
s charity payable if so directed by the Shari’ah Board
amounts less accumulated depreciation and
fficient regularity to ensure that their net carrying
of property is credited to the ‘surplus on revaluation
and any deficit arising on revaluation is taken to
s of acquiring title to property are charged to
s with other banks (net of overdrawn Nostro balances)
alances with treasury banks, balances with other

yable, borrowings, deposits and other liabilities.
cial liabilities are disclosed in the individual policy
hich a derivative contract is entered into and are

ive financial instruments are carried as an asset when
in the fair value of derivative financial instruments is
hese consolidated financial statements when there is a

or to realize the assets and settle the liabilities,
deposits is recognized as an expense in the period in
basis of two modes i.e.
Deposits generated on Mudaraba basis are classified

ent account depositors.
t sharing ratio. Rab-ul-Maal share is distributed

it calculation period.
e risk of
the profit calculation period, the loss is distributed
and transfer
oducts or services (business segment) or in

ment), which is subject to risks and rewards that are
iness segments.
king and other banking activities / with Group’s
customers of the Group. Product suite offered to
curities, lendings and borrowings and derivatives for
y research and underwriting.
ing and other banking activities by Group’s overseas
assified in any of the above segments.
tions which are required by law) are recognized in
r by applying the acquisition method. The cost of

the liabilities incurred or assumed at the date of
ty resulting from a contingent consideration
ssets acquired and liabilities and contingent liabilities
quisition date. The excess of the consideration
dwill. If this is less than the fair value of the net assets
consolidated profit and loss account or as directed by
d by dividing the profit or loss attributable to ordinary

ding during the year.
nds accepted / acquired under Mudaraba, Musharaka
ba basis from depositors (Rabb-ul-Maal) where the

mpliant modes of financings, investments and
nds received from depositors over the funds generated
he State Bank of Pakistan and other Groups for

ment respectively under the Musharaka / Mudaraba
s equity and funds accepted on Qard (non-
booked by utilizing the funds from the pool after

h pool, if any. The directly related costs comprise of
No general or administrative nature of expense is
is passed on to the pool except on the actual loss /
ween equity and other members of the pool on the basis
estment ratio of the equity. The profit of the pool is
the weightages announced before the profit
e provided to diversified sectors and avenues of the

rnment of Pakistan backed Ijarah Sukuks. Staff
ty profile of each pool.

6.23 Funds due to / from financial institutions Bai Mu’ajjal
In Bai Mu’ajjal, the Group sells sukuk on credit to other financial institutions. The credit price is agreed at the time of sale and such proceeds are
received at the end of the credit period.
Musharaka / Mudaraba / Wakala

In Musharaka / Mudaraba / Wakala, the Group invests in the Shariah compliant business pools of the financial institutions at the agreed
and loss sharing ratio / fees.
2021 2020
Local currency 24,962,316
Foreign currencies 6,622,320
31,584,636
With State Bank of Pakistan in
Local currency current accounts 7.1 89,811,750

Foreign currency current accounts 7.2 2,937,151
Foreign currency deposit accounts 7.3 10,550,168
103,299,069
With other central banks in
Foreign currency current accounts 7.4 6,728,135 11,851,311
With National Bank of Pakistan in Local currency current accounts
34,016,028
Prize bonds 294.601
175,922,469
7.1 This represents current accounts maintained with the SBP under the Cash Reserve Requirement of section 22 of the Banking Companies
Ordinance, 1962. In addition, Rs. 979.736 million (2020: Nil) have been placed in a special account under SBP directive.
7.2 This includes foreign currencies settlement account maintained with SBP along with Rs. 544.429 million (2020: 588.351 million) mainta
to comply with the cash reserve and special cash reserve requirements by a subsidiary.
7.3 This represents account maintained with the SBP to comply with the Special Cash Reserve requirement. This includes balance
Rs. 7,033.445 million (2020: Rs. 6,810.656 million) which carries interest rate of 0% (2020: 0%) per annum as declared by SBP.
7.4 Foreign currency current account with other central banks are maintained to meet their minimum cash
reserves and capital requirements pertaining to the foreign branches of the Group.
7. CASH AND BALANCES WITH TREASURY BANKS
In hand
reed at the time of sale and such proceeds are
pools of the financial institutions at the agreed profit
0)
25,039,386
7,088,257
32,127,643
51,920,851
2,271,659
10,532,776
64,725,286
11,851,311
22,308,442
1,040,359
132,053,041
ment of section 22 of the Banking Companies
under SBP directive.
44.429 million (2020: 588.351 million) maintained
Reserve requirement. This includes balance of

%) per annum as declared by SBP.
imum cash
2021 2020
8. BALANCES WITH OTHER BANKS
In Pakistan
In current account 27.123
In deposit account 8.1 71.563
98.686
Outside Pakistan
In current account 12,119,471
In deposit account 8.2 10,336,172
22,455,643
22,554,329
8.1 This represents saving accounts carrying profit at expected rates ranging from 2.35% to 6.00% per
annum (2020: 2.13% to 6.00% per annum).
8.2 Balances with other banks outside Pakistan in deposit accounts carry interest rate of 0.40% to 6.00%
(2020: 1.5%) per annum.
2021 2020
9. LENDINGS TO FINANCIAL INSTITUTIONS
Call / clean money lendings 9.1 24,071,021

Repurchase agreement lendings (Reverse Repo) 9.2 14,896,089
Musharaka arrangements 9.3 1,650,000
Bai Muajjal receivable - with State Bank of Pakistan –
40,617,110
9.1 Call money lending carries mark-up rate ranging from 0.15% to 10.45% (2020: 0.1% to 4.55%) per
annum and is due to mature in February 2022.
9.2 Repurchase agreement lendings carry mark-up rate ranging from 10.50% to 10.70% per annum and
is due to mature in January 2022.
9.3 This represents Musharaka placements with various financial institutions carrying average profit rate
of 10.35% per annum (2020: Nil) and having maturity till January 04, 2022.
2021 2020
(Rupees in '000)
9.4 Particulars of lending
In local currency 16,546,089

In foreign currencies 24,071,021
40,617,110
0
Rupees in '000)
9.190
1.554
10.744
26,768,812
2,231,965
29,000,777
29,011,521
2.35% to 6.00% per
ate of 0.40% to 6.00%
0
Rupees in '000)
11,002,195
6,137,258
–
828.790
17,968,243
0: 0.1% to 4.55%) per
0.70% per annum and
ying average profit rate
6,966,048
11,002,195
17,968,243
2021 2020
Held by Further given Total Held by Further given Total
Group as collateral Group as collateral
(Rupees in '000)
9.5 Securities held as collateral against
lendings to financial institutions
Market Treasury Bills
14,896,089 – 14,896,089 6,137,258 –

10. INVESTMENTS
10.1 Investments by type:
2021 2020
Cost/ Provision Surplus/ Carrying Cost / Provision Surplus / Carrying
Note amortised for (Deficit) value amortised for (Deficit) value

cost diminution cost diminution
(Rupees in '000)
Held-for-trading securities 1,309,116 – (224) 1,308,892
Federal Government Securities Mutual Fund 1,158,952 – 110,493 1,269,445
Units 2,468,068 – 110,269 2,578,337
Available-for-sale securities 12,467 – (12) 12,455 969,144,840 (4,719) 9,477,853
Federal Government Securities Shares and 1,249,644 – (7,014) 1,242,630 978,617,974
units 28,398,065 (11,155,719) 3,412,147
Non Government Debt Securities Foreign 1,262,111 – (7,026) 20,654,493
Securities 1,255,085 2,841,840 – 16,780 2,858,620
Held-to-maturity securities 7,463,939 (1,714) 17,509 7,479,734
Federal Government Securities Provincial 1,007,848,684 (11,162,152) 12,924,289
Government Securities Non Government 1,008,297, (22,288) (9,216,775) 999,058,58 1,009,610,821
Debt Securities Foreign Securities 650 (10,358,683 1,342,018 7 7,313,217 (11,542) – 7,301,675
Associates 10.2 31,651,347 ) 17,833 22,634,682 118 (118) – –
Total Investments 2,342,840 – (1,748) (5,424) 2,360,673 9,615,317 (490,341) – 9,124,976
7,557,240 7,550,068 3,149,647 (27,281) – 3,122,366
20,078,299 (529,282) – 19,549,017
1,049,849,077 (10,382,719) (7,862,348) 4,479,360 – – 4,479,360
1,031,604,010
15,901,861 (52,637) – 15,849,224

118 (118) – – 7,792,935
8,270,476 (477,541) – 783,975
792,607 (8,632) –
24,965,062 (538,928) –
24,426,134
5,283,282 – – 5,283,282
1,081,359,532 (10,921,647) (7,869,374) 1,034,874,411 (11,691,434) 13,034,558
1,062,568,511 1,036,217,535
6,137,258
2020
Provision Surplus / Carrying
Deficit) value
– (224) 1,308,892
– 110,493 1,269,445
– 110,269 2,578,337
(4,719) 9,477,853
,155,719) 3,412,147
– 16,780 2,858,620
1,714) 17,509 7,479,734
(11,162,152) 12,924,289
11,542) – 7,301,675
– –
90,341) – 9,124,976
27,281) – 3,122,366
529,282) – 19,549,017
– – 4,479,360
(11,691,434) 13,034,558
10.2 Investments by segments:
2021 2020
Cost/ Provision Surplus/ Carrying Cost / Provision Surplus / Carrying
Note amortised for (Deficit) value amortised for (Deficit) value cost dimin
cost diminution
(Rupees in '000)
Federal Government Securities: 598,470,191 – 256,237 598,726,428

Market Treasury Bills Pakistan Investment 349,738,865 – 9,180,611
Bonds Sukuks bonds 358,919,476
Naya Pakistan Certificates Euro Bonds 325,536,27 – (478,211) 325,058,06 24,294,814 (2,872) (24,383)
Bai Mu’ajjal 6 – (1,410) (8,648,559) 5 24,267,559
Provincial Government Securities Shares and 660,197,52 – (73,515) (89,694) 651,548,96 465,779 – – 465,779
units: 7 – – 8 2,096,697 (13,389) 65,166 2,148,474
Listed Companies Unlisted Companies 31,071,895 – (323) 30,980,791 2,700,827 – – 2,700,827
Non Government Debt Securities 925,513 925,513 977,767,173 (16,261) 9,477,631
Listed Unlisted 4,939,876 4,866,361 987,228,543
Foreign Securities 1,540,891 1,540,568 118 (118) – –
Government securities Unlisted equity 27,974,567 (10,986,392) 3,522,638
securities 1,024,211,978 (74,925) (9,216,787) 20,510,813
Associates 1,014,920,266 1,582,450 (169,325) – 1,413,125
- Adamjee Insurance Company Limited 118 (118) – – 29,557,017 (11,155,717) 3,522,638
10.9 21,923,938
- Euronet Pakistan (Private) Limited 5,613,730 (16,269) 12,037 5,609,498
10.10 6,843,427 (474,072) 4,743 6,374,098
Total Investments 31,271,9 (10,186,092 1,335,004 22,420,8 12,457,157 (490,341) 16,780
20 ) – 32 11,983,596
1,629,07 (172,591) 1,456,48 10,606,326 (27,281) 17,509
132,900,991 (10,358,683) 0
1,335,004 10,596,554
23,877,312 7,260 (1,716) – 5,544
10,613,586 (28,997) 17,509
10,602,098
4,478,44 (3,469) 10,222 4,485,19 4,435,075 – – 4,435,075
1 (474,072) 7,611 4 44,285 – – 44,285
6,134,87 5,668,41 4,479,360 – – 4,479,360
5
10,613,316 (477,541) 17,8334
10,153,608
8,342,536 (8,634) (5,424) 8,328,478

7,311 (1,746) – 5,565
8,349,847 (10,380) (5,424)

8,334,043
5,240,911 – – 5,240,911
42,371 – – 42,371
5,283,282 – – 5,283,282
1,081,359,532 (10,921,647) (7,869,374) 1,034,874,411 (11,691,434) 13,034,558

1,062,568,511 1,036,217,535
2021 2020
(Rupees in '000)
10.2.1 Investments given as collateral
- Market Treasury Bills 107,136,184

- Pakistan Investment Bonds 53,303,403
160,439,587
ortised for (Deficit) value cost diminution
70,191 – 256,237 598,726,428

38,865 – 9,180,611
19,476
4,814 (2,872) (24,383)
7,559
79 – – 465,779
697 (13,389) 65,166 2,148,474
827 – – 2,700,827
67,173 (16,261) 9,477,631
28,543
(118) – –
4,567 (10,986,392) 3,522,638
0,813
450 (169,325) – 1,413,125
7,017 (11,155,717) 3,522,638
3,938
730 (16,269) 12,037 5,609,498
427 (474,072) 4,743 6,374,098
7,157 (490,341) 16,780
3,596
6,326 (27,281) 17,509
6,554
(1,716) – 5,544
3,586 (28,997) 17,509
2,098
075 – – 4,435,075
5 – – 44,285
360 – – 4,479,360
874,411 (11,691,434) 13,034,558

217,535
91,279,273
1,000,283
92,279,556
2021 2020
10.3.1 Opening balance 11,691,434 11,747,618
Exchange and other adjustments 570 13.474

Charge / (reversals)
Charge for the year 985.236 1,993,335
Reversals for the year (18.390) (1.529)
Reversal on disposals (1,737,203) (2,061,464)
(770.357) (69.658)
Closing balance 10.3.3 10,921,647 11,691,434
10.3.2 Particulars of provision against debt securities

Category of classification
2021 2020
NPI Provision NPI Provision
(Rupees in '000)
Domestic
Loss 477.659 477.659 490.459

477.659 477.659 490.459
10.3.3 This includes a general provision of Rs 83.557 million (December 31, 2020: Rs 43.542 million) held by
overseas branches in accordance with the requirements of IFRS 9.
10.4 Quality of Available for Sale Securities
Details regarding quality of Available for Sale (AFS) securities are as follows;
2021 2020
Federal Government Securities -
Government guaranteed
Market Treasury Bills 325,523,809 597,161,075
Euro Bonds 3,301,407 1,341,708
Sukuk Bonds 31,071,895 23,771,132
Naya Pakistan Certificates 925.512 465.779
1,008,297,650 969,144,840
00)
11,747,618
13.474
1,993,335
(1.529)
(2,061,464)
(69.658)
11,691,434
sion
490.459
490.459
llion) held by
597,161,075
346,405,146
1,341,708
23,771,132
465.779
969,144,840
2021 2020
Listed Companies and mutual funds
Automobile Assembler 1,607,719 1,573,156

Automobile Part and Accessories 413.930 413.930
Cable and Electrical Goods 573.042 672.851
Cement 2,333,482 2,050,172
Chemical 634.587 285.638
Close end Mutual Fund 1,186,851 1,186,851
Commercial Banks 3,897,895 3,002,215
Engineering 1,550,301 1,840,590
Fertilizer 2,957,126 2,925,460
Food and Personal Care Products 1,122,096 1,229,398
Glass and Ceramics 89.048 –
Insurance 753.786 599.364
Investment Banks / Companies 585.624 585.624
NIT Units 5.253 5.253
Oil & Gas Exploration Companies 4,084,865 2,990,518
Oil & Gas Marketing Companies 886.817 760.532
Open End Mutual Fund 96.361 190.083
Paper and Board 543.706 648.581
Pharmaceutical 1,048,524 1,103,229
Power Generation and Distribution 3,525,290 2,616,001
Refinery 684.113 981.399
Technology and Communication 1,296,309 707.827
Textile Composite 129.382 430.774
Textile Spinning 16.169 16.169
30,022,276 26,815,615
2021 2020
Cost Breakup value Cost Breakup value
(Rupees in '000)
Unlisted Companies
Central Depository Company Limited 184.426 819.324 184.426

First Capital Investment (Private) Limited 2.500 2.831 2.500
First Women Bank Limited 63.300 215.838 63.300
ISE Towers REIT Management Company Limited 30.346 101.804 30.346
National Investment Trust Limited 1,027,651 2,006,567 1,027,651
National Institutional Facilitation Technologies 1.527 35.899 1.527
Pak Agro Storage And Service Corporation 2.500 1,567,552 2.500
1 Link (Private) Limited 50.000 267.895 50.000
Naymat Collateral Management Company 29.286 21.021 29.285
Pakistan Corporate Restructuring Company 51.396 48.210 –
Arabian Sea Country Club* 5.000 – 5.000
SME Bank Limited* 10.106 – 10.106
Al-Ameen Textile Mills Limited* 197 – 197
Custodian Management Services* 1.000 – 1.000
Galaxy Textile Mills Limited* 30.177 – 30.178
Pakistan Textile City (Private) Limited* 50.000 – 50.000
Ayaz Textile Mills Limited* 2.253 – 2.253
Musarrat Textile Mills Limited* 36.045 – 36.045
Sadiqabad Textile Mills Limited* 26.361 – 26.361
Al-Arabia Sugar Mills Limited - Preference shares* – – 4.775
Pak Elektron Limited - Preference shares 25.000 25.000 25.000
1,629,071 5,111,941 1,582,450
*These investments are fully provided.
2020
pees in '000)
1,573,156
413.930
672.851
2,050,172
285.638
1,186,851
3,002,215
1,840,590
2,925,460
1,229,398
–
599.364
585.624
5.253
2,990,518
760.532
190.083
648.581
1,103,229
2,616,001
981.399
707.827
430.774
16.169
26,815,615
(Rupees in '000)
756.153
2.667
215.838
93.780
1,661,565
51.998
1,239,050
202.032
25.876
–
–
–
–
–
–
–
–
–
–
–
25.000
4,273,959
2021 2020
Non Government Debt Securities Listed

- AA+, AA, AA-
- A+, A, A-
Unlisted 1,676,840
1,322,840
75,000
– 1,322,840
1,751,840
AAA - AA+, AA, AA- 920.000 990.000

- A+, A, A- 100.000 100.000
1,020,000 1,090,000
2021 2020
Cost Rating Cost Rating

(Rupees in '000)
Foreign Securities
Government Debt
Securities
- Sri Lanka
7,549,929 Caa2 7,456,679 Caa1

2021 2020
Cost
Unlisted Equity Securities
Lanka Clear (Private) Limited 874

Credit Information Bureau of Sri Lanka 26
Lanka Financial Services Bureau Limited 1.748
Society for Worldwide Inter Fund Transfer (SWIFT) 4.663
7.311
10.5 Particulars relating to Held to Maturity

securities are as follows:
Federal Government Securities - Government guaranteed
Sukuk Bonds – 523.680
Euro Bonds 1,638,470 754.991
Bai Mu’ajjal 10.5.1 1,540,891 2,700,827
15,901,861 7,313,217
Provincial Government Securities 118 118

1,676,840
75,000
1,751,840
990.000
100.000
1,090,000
Caa1
857
26
1.714
4.663
7.260
3,333,719
523.680
754.991
2,700,827
7,313,217
118
2021 2020
Non Government Debt Securities Listed

- AAA
- AA+, AA, AA-
- Unrated
Unlisted
- AA+, AA, AA- – 2,502,280
- A+, A, A- 49,851
Unrated
2,552,131
4,800,967
439,838
477,540
5,718,345
2021 2020
Foreign Securities
Government
Securities
- Sri Lanka
792,607 Caa2 3,149,647 Caa1

10.5.1 This represents receivable from Government of Pakistan against sale of GoP Ijarah Sukuk certificate
(GIS - 18). The deferred price will be recovered at the time of maturity.
10.5.2 The market value of securities classified as held-to-maturity as at December 31, 2021 amounted to
Rs. 22,233.571 million (December 31, 2020: Rs. 17,351.392 million).
10.6 Available for sale” Market Treasury Bills and Pakistan Investment Bonds are eligible for rediscounting
with the State Bank of Pakistan.
10.7 Investments include Pakistan Investment Bonds amounting to Rs. 67.9 million (2020: Rs. 67.9 million) earmarked by
SBP against TT discounting facilities sanctioned to the Bank. In addition, Pakistan Investment Bonds amounting to Rs. 5 million (2020
5 million) have been pledged with the Controller of Military Accounts on account of Regimental Fund account and Pakistan Investmen
Bonds amounting to Rs. 100 million (2020: Rs. 100 million) have been pledged with the National Clearing Company of Pakistan Limit
(NCCPL) on account of removal of irrevocable undertaking as alternate option for collateral against participant’s exposure in stock ma
10.8 Certain approved / Government securities are kept with the SBP to meet statutory liquidity requirements
calculated on the basis of domestic demand and time liabilities.
10.9 Investment of the Group in Adamjee Insurance Company Limited has been accounted for under the equity method of accounti
accordance with the treatment specified in International Accounting Standard 28, (IAS 28) ‘Accounting for Investments in Associates’
market value of the investment in Adamjee Insurance Company Limited as at December 31, 2021 amounted to Rs. 2,800.000 million. (
Rs. 2,752.400 million).
1 2020
t (Rupees in '000)
1,796,250
1,989,520
66,120
3,851,890
4,849,483
439,874
474,070
5,763,427
149,647 Caa1
jarah Sukuk certificate
1, 2021 amounted to
eligible for rediscounting
million (2020: Rs. 67.9 million) earmarked by the

estment Bonds amounting to Rs. 5 million (2020: Rs.
egimental Fund account and Pakistan Investment
he National Clearing Company of Pakistan Limited
ateral against participant’s exposure in stock market.
tory liquidity requirements
counted for under the equity method of accounting in

28) ‘Accounting for Investments in Associates’. The
er 31, 2021 amounted to Rs. 2,800.000 million. (2020:
Investment in Adamjee Insurance Company Limited under equity method - holding 20.00%
(2020: 20%)
2021
Opening balance 4,435,075
Share of profit for the year before tax 934.170

Dividend from associate (192.500)
Share of tax (155.337)
586.333
Share of other comprehensive
income / (loss) 10.9.1 219.503

10.9.1 Share of other comprehensive income

Share of unrealized (deficit) / surplus on assets -net of tax 211.175
Share of exchange translation reserve of associate 8.328
219.503
10.10 Investment of the Group in Euronet Pakistan Private Limited has been accounted for under the equity method of accounting in accordanc
the treatment specified in International Accounting Standard 28, (IAS 28) ‘Accounting for Investments in Associates’.
Investment in Euronet Pakistan Private Limited under equity method - holding 30% (2020:
30.00%)
2021
(Rupees in '000)
Share of (loss) / profit for the year before tax 9.417

Share of tax (11.331)
Closing balance (1.914)
42.371
2020
ees in '000)
4,211,707
585.968
(192.500)
(143.175)
250.293
(26.925)
4,435,075
(34.246)
7.321
(26.925)
hod of accounting in accordance with
tes’.
2020
(Rupees in '000)
63.951
(12.890)
(6.776)
(19.666)
44.285
10.11 Summarized financial information of associates
Country of % of interest Revenu Profit/ Total Assets Liabilities
Name incorporation held e (loss) comprehensive
after tax income / (loss)
(Rupees in
'000)
2021
Associates
(unaudited based on December 31,
2021)
Pakistan 30% 720.665 13.916 13.916 773.972

Adamjee Insurance Company Pakistan 20% 23,530,8 2,408,605 1,217,96 116,278,9 93,385,707
Limited (unaudited based on 11 9 38
September 30, 2021)
2020
Associates
(audited based on December 31,
2020) Pakistan 30% 718.076 (84.235) (79.622) 783.908
Adamjee Insurance Company 20,596,2 95,997,
Limited (unaudited based on Pakistan 20% 1,319,951 439.880 74,918,209
03 472
September 30, 2020)
11. ADVANCES Performing Non Performing Total
Note 2021 2020 2021 2020 2021 2020
(Rupees in '000)
Loans, cash credits, running

11.1 565,602,060 444,022,138 49,404,885 50,524,753 615,006,945 494,546,891
finances, etc.
Islamic financing and related 95,793,392 84,205,962 701.770 756.471 96,495,162 84,962,433
assetsdiscounted
Bills * and purchased 19,852,814 18,192,157 1,085,920 664.294 20,938,734 18,856,451
Advances - gross 681,248,266 546,420,257 51,192,575 51,945,518 732,440,841 598,365,775
Provision against advances
- Specific – – (44,281,189) (45,168,351) (44,281,189) (45,168,351)

- General 11.4.4 (1,771,000) (5,511,716) – – (1,771,000) (5,511,716)
(1,771,000) (5,511,716) (44,281,189) (45,168,351) (46,052,189) (50,680,067)
Advances - net of provision 679,477,266 540,908,541 6,911,386 6,777,167 686,388,652 547,685,708
*Details of Islamic financing and related assets have been mentioned in Annexure II of these consolidated
11.1 Includes net investment in finance lease as disclosed below:
2021 2020
Not later Later than Over five Not later Later than Over
than one one and years Total five
than one one and less years Total
less year than five years year than five ye
(Rupees in '0
Lease rentals receivable 2,047,805 1,935,215 853.040 4,836,060 2,022,558 1,835,337 1,133,794
Residual value 12.535 340.969 28.726 382.230 20.428 103.490 23.039

Minimum lease payments 2,060,340 2,276,184 881.766 5,218,290 2,042,986 1,938,827 1,156,833
Financial charges for future periods (111.377) (351.445) (397.000) (859.822) (99.749) (309.852) (418.859)
Present value of minimum lease payments 1,948,963 1,924,739 484.766 4,358,468 1,943,237 1,628,975 737.974
Liabilities
632.732
93,385,707
656.585
74,918,209
al
2021 2020
494,546,891
84,962,433
18,856,451
598,365,775
(45,168,351)
(5,511,716)
(50,680,067)
547,685,708
solidated
year than five years

(Rupees in '000)
4,991,689
146.957
5,138,646
(828.460)
4,310,186
2021 2020
(Rupees in '000)
11.2 Particulars of advances (Gross)

732,440,841 598,365,775
11.3 Advances include Rs. 51,192.575 million (2020: Rs. 51,945.518 million) which have been placed
under the non-performing status as detailed below:
2021 2020
Non Provision Non performing Provision
performing
Note loans loans
(Rupees in '000)
Category of Classification Domestic
Other Assets Especially
Mentioned 11.3.1 49.911 1.340 61.612

Substandard 279.422 67.795 309.191
Doubtful 750.097 169.179 459.053
Loss 40,720,274 40,215,099 42,671,220 41,498,157
41,799,704 40,453,413 43,501,076 41,697,863
Overseas
Not past due but impaired Overdue by: – – – –

Upto 90 days 38,999 14,993 – 5,321 – 4,913
91 to 180 days 12.212 5.750 2.020

181 to 365 days 109.551 54.776 19.961
> 365 days 9,232,109 3,752,257 8,417,140 3,455,089
9,392,871 3,827,776 8,444,442 3,470,488
Total 51,192,575 44,281,189 51,945,518 45,168,351
11.3.1 This represents non-performing portfolio of agricultural and small enterprise financing classified as OAEM as per the requirements o
the Prudential Regulation for Agricultural and Small Enterprise Financing issued by the State Bank of Pakistan.
11.4 Particulars of provision against advances

2021 2020
Note Specific General Total Specific General Total
(Rupees in '000)
Opening balance 45,168,351 5,511,716 50,680,067 41,937,761 1,461,011
Exchange adjustments 319.945 18.951 338.896 50.555 7.162

Charge for the year 2,457,017 230.979 2,687,996 5,730,579 4,106,594
Reversals 11.4.3 & (3,258,052) (3,990,646) (7,248,698) (2,215,829) (63.051)
11.4.4 (801.035) (3,759,667) (4,560,702) 3,514,750 4,043,543
Amounts written off 11.5 (406.072) – (406.072) (334.715) –
Closing balance 44,281,189 1,771,000 46,052,189 45,168,351 5,511,716
554,179,378
44,186,397
598,365,775
d
Provision
1.983
60.382
137.341
41,498,157
41,697,863
–
– 4,913
505
9.981
3,455,089
3,470,488
45,168,351
as OAEM as per the requirements of
f Pakistan.
43,398,772
57.717
9,837,173
(2,278,880)
7,558,293
(334.715)
50,680,067
11.4.1 Particulars of provision against advances
2021 2020
Specific General Total Specific General Total (Rupees in '000)
In local currency 40,105,891 1,389,045 41,494,936 41,697,863 5,189,680

In foreign currencies 4,175,298 381.955 4,557,253 3,470,488 322.036
44,281,189 1,771,000 46,052,189 45,168,351 5,511,716
11.4.2 State Bank of Pakistan vide BSD Circular No. 2 dated January 27, 2009, BSD Circular No. 10 dated October 20, 2009, BSD
Circular No. 02 of 2010 dated June 03, 2010 and BSD Circular No.1 of 2011 dated October 21, 2011 has allowed benefit of forced sale
value (FSV) of Plant & Machinery under charge, pledged stock and mortgaged residential, commercial & industrial properties (land an
building only) held as collateral against NPLs for five years from the date of classification. The Holding company has not taken the
benefit in calculation of specific provision. However, one of the subsidiaries has availed benefit of forced sale values amounting
249.750 million (December 31, 2020: Rs. 543.151 million) in determining the provisioning against non-performing Islamic financing a
related assets as at December 31, 2021. The additional benefit on the Bank’s statement of profit and loss arising from availing
FSV benefit - net of tax amounts to Rs 152.378 million as at December 31, 2021 (December 31, 2020: Rs. 353.048 million). However,
additional impact on profitability arising from availing the benefit of forced sales value is not available for payment of cash or stock
dividends to shareholders.
11.4.3 This includes reversal of provisions and reduction of non-performing loans amounting to Rs. Nil (2020:
Rs. 84 Million) as a result of settlement on debt asset swap arrangement with customers.
11.4.4 General provision of Rs. 4.0 billion was created last year on account of uncertainty emanating from COVID-19 outbreak, as m
of Group’s borrowers had availed the SBP relief program relating to deferment/restructuring & rescheduling. During the current ye
as part of the continuous credit assessment process, the Group has created specific provision against exposures that reflected signs o
financial distress. However, the Group has reversed the general provision as the systematic risks surrounding the economic recovery ha
receded.
The Group maintains general reserve in accordance with the applicable requirements of the Prudential Regulations for Consu
Financing and Prudential Regulations for Small and Medium Enterprise Financing issued by the SBP. General provision
pertaining to overseas advances are made in accordance with the requirements of the regulatory authorities of the respect
countries in which the overseas branches operate. In addition, the Holding company also maintains a general provision again
gross advances on a prudent basis.
2021 2020
11.5 PARTICULARS OF WRITE OFFs:
11.5.1 Against Provisions 11.4 406.072 334.715

406.072 334.715
11.5.2 Write Offs of Rs. 500,000 and above
- Domestic 11.6 384.417 299.532

- Overseas 11.6 10.108 –
Write Offs of below Rs. 500,000 11.547 35.183
11.4 406.072 334.715
46,887,543
3,792,524
50,680,067
No. 10 dated October 20, 2009, BSD
2011 has allowed benefit of forced sale
mercial & industrial properties (land and
Holding company has not taken the FSV
enefit of forced sale values amounting to Rs.
nst non-performing Islamic financing and
of profit and loss arising from availing the
2020: Rs. 353.048 million). However, the
ailable for payment of cash or stock
to Rs. Nil (2020:
anating from COVID-19 outbreak, as many

rescheduling. During the current year,
against exposures that reflected signs of
surrounding the economic recovery have
of the Prudential Regulations for Consumer

sued by the SBP. General provisions
the regulatory authorities of the respective
lso maintains a general provision against
'000)
334.715
334.715
299.532
–
35.183
334.715
11.6 DETAILS OF LOAN WRITE OFF 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 Rupees five hundred thousand or above allowed to a person(s) during the year ended December 31, 2021 is given at
Annexure I of the unconsolidated financial statements. However, this write off does not affect the Bank’s right to recover the debts from these
customers.
2021 2020
12. FIXED ASSETS
Capital work-in-progress 12.1 928.545 871.274

Property and equipment 12.2 53,472,833 53,190,768
Right-of-use assets 12.3 7,950,167 9,617,270
62,351,545 63,679,312
12.1 Capital work-in-progress
Civil works 483.986 472.314

Equipment 15.180 98.383
Advances to suppliers 422.256 296.456
Others 7.123 4.121
928.545 871.274
12.2 Property and Equipment
2021
land lan freehold leasehold and fixtures office and improvements Total
d land land computer equipment
(Rupees in '000)
At January 01, 2021
Cost / Revalued amount
Accumulated depreciation 27,141,27 15,273,59 16,995,598
2,900,078 806,387 2,239,957 1,120,324 1,775,260
Accumulated Impairment 2 6 (11,874,75
– (28,590) (1,297,854) (673,674) (681,889)
– (497,662) 0)
– – (726) – (6,559)
– – –
Net book value 27,141,27 2,900,078 14,775,93 777.797 941.377 5,120,848 446.650 1,086,812
2 4
Opening net book value 27,141,27 2,900,078 14,775,93 777.797 941.377 5,120,848 446.650 1,086,812
2 4
Additions 188.968 2.310 682.583 26.474 191.163 1,433,068 186.005 437.234
Disposals (148.859) – (115.378) – (6.908) (11.072) (12.732) (3.034)
Depreciation charge – – (535.089) (36.178) (173.457) (1,457,297) (116.856) (268.475)
Exchange rate adjustments – – 1.737 2.173 2.681 3.424 3.768 5.812
Transfers – – – – – – – –
Closing net book value 27,181,38 2,902,388 14,809,78 770.266 954.856 5,088,971 506.835 1,258,349
1 7
Cost / Revalued amount 27,181,38 2,902,388 15,835,78 835.142 2,361,270 18,013,550 1,243,942 2,204,571
1 3
Accumulated depreciation – – (1,025,996 (64.876) (1,405,688) (12,924,57 (737.107) (939.663)
Accumulated Impairment – – –) – (726) 9)
– – (6.559)
Net book value 27,181,38 2,902,388 14,809,78 770.266 954.856 5,088,971 506.835 1,258,349
1 7
estimated useful life – – 2.00%- 2.50%- 10% 10%-25% 20% Lease term
5.0% 5.0%
ct of written-off loans or any other
ecember 31, 2021 is given at
ght to recover the debts from these
871.274
53,190,768
9,617,270
63,679,312
472.314
98.383
296.456
4.121
871.274
old
68,252,47
2
(15,054,4
19)
(7,285)
53,190,76
8
53,190,76
8
3,147,805
(297.983)
(2,587,35
2)
19.595
–
53,472,83
3
70,578,02
7
(17,097,9
09)
(7.285)
53,472,83
3
–
2020
land land freehold leasehold and fixtures office and improvements Total land land computer equipment
(Rupees in '000)
At January 01, 2020

Cost / Revalued amount 26,951,665 2,893,079 14,400,594 637.102 2,047,789
Accumulated depreciation – – (236) – (1,159,800)

Net book value 26,951,665 2,893,079 14,400,358 637.102 887.989
Opening net book value 26,951,665 2,893,079 14,400,358 637.102 887.989

Additions 189.607 6.999 976.836 168.601 228.078
Disposal – – (85.546) – (2.579)
Depreciation charge – – (498.884) (28.597) (172.075)
Impairment – – – – (870)
Exchange rate adjustments – – 412 691 773
Transfers – – (17.242) – 61
Closing net book value 27,141,272 2,900,078 14,775,934 777.797 941.377
Cost / Revalued amount 27,141,272 2,900,078 15,273,596 806.387 2,239,957

Accumulated depreciation – – (497.662) (28.590) (1,297,854)
Accumulated Impairment – – – – (726)
Net book value 27,141,272 2,900,078 14,775,934 777,797 941,377 5,120,848 446,650 1,086,812 53,190,768
estimated useful life – – 2.00%-5.0% 2.50%-5.0% 10% 10%-25% 20% Lease term –
12.2.1 Leasehold land include a plot of land measuring 3,120.46 square yards having book value of Rs. 1,426.809 million situated at
Railway Quarters, I.I. Chundrigar Road, Karachi, (the “Plot”), where a tenant is claiming for the possession of an insignificant area of
18 square feet of the plot, however there is no dispute over the title of the subject property that would impact the right of the Group. Bo
the Constitutional Petitions filed by the Group have been dismissed by the Sindh High Court on 28 January 2016 against the Group. Th
Group has filed an appeal before the Supreme Court of Pakistan.
12.2.2 The land and buildings of the Group were revalued as at December 31, 2019 by independent valuers (K.G. Traders (Pvt) Limi
Tristar International Consultant (Pvt) Limited & Sardar Enterprises), valuation and engineering consultants, on the basis of market valu
The total surplus against revaluation of fixed assets as at December 31, 2021 amounts to Rs. 20,589.804 million (2020: Rs. 20,856.881
million).
12.2.3 Had the land and buildings not been revalued, the total carrying amounts of revalued properties as at
the reporting dates would have been as follows:
2021 2020
(Rupees in '000)
Land 13,407,405
Buildings 12,003,314
uter equipment
15,989,634 1,176,389 1,352,983 65,449,235
(10,690,712 (643.336) (488.611) (12,982,695

) )
5,298,922 533.053 864.372 52,466,540
5,298,922 533.053 864.372 52,466,540

1,174,108 60.767 443.560 3,248,556
(6.910) (23.938) (1.300) (120.273)
(1,345,944) (125.219) (232.501) (2,403,220)
(561) – (2.838) (4.269)
1.294 1.987 (1.723) 3.434
(61) – 17.242 –
5,120,848 446.650 1,086,812 53,190,768
16,995,598 1,120,324 1,775,260 68,252,472

(11,874,750 (673.674) (681.889) (15,054,419
–) – (6.559) (7.285))
0,848 446,650 1,086,812 53,190,768
% 20% Lease term –

e of Rs. 1,426.809 million situated at
possession of an insignificant area of only
ould impact the right of the Group. Both
8 January 2016 against the Group. The
dent valuers (K.G. Traders (Pvt) Limited,

onsultants, on the basis of market value.
89.804 million (2020: Rs. 20,856.881
perties as at
13,407,405 13,007,065
12,003,314 11,731,135
12.2.4 The gross carrying amount (cost) of fully depreciated assets that are still in use are as follows:
2021 2020
(Rupees in '000)
Furniture and fixtures 651.496
Electrical, computers and office equipment 8,146,030
Vehicles 460.238
Lease Hold Improvments 92.635
12.2.5 Carrying amount of temporarily idle property of the Group is Rs. 44.479 million (2020: Rs. 436.136
million)
12.2.6 The information relating to disposal of operating fixed assets to related parties is given in Annexure I
of these consolidated financial statements.
12.3 Movement in right-of-use assets is as follows:
2021 2020
Opening balance 9,617,270 10,666,838
Additions / adjustments 723.039 1,263,307
Derecognition (680.529) (615.049)
Depreciation charge 31 (1,709,613) (1,697,826)
Closing Net Book Value 7,950,167 9,617,270
13. INTANGIBLE ASSETS
Capital work-in-progress 468.679 435.330

Goodwill 82.127 82.127
Management rights 192.000 192.000
Computer software 13.1 1,095,330 1,157,787
1,838,136 1,867,244
2021 2020
(Rupees in '000)
Computer software
13.1 At January 01
Cost 5,262,979 4,865,584
Accumulated amortisation and impairment (4,105,192) (3,633,072)
Net book value 1,157,787 1,232,512
Year ended December 31
Opening net book value 1,157,787 1,232,512
Additions 417.737 395.186
Amortisation charge (480.826) (469.860)
Exchange rate adjustments 632 (51)
Closing net book value 1,095,330 1,157,787
At December 31
Cost 5,687,650 5,262,979
Accumulated amortisation and impairment (4,592,320) (4,105,192)
Net book value 1,095,330 1,157,787
Rate of amortisation (percentage) 14% to 33.33% 14% to 33.33%
Useful life 3 - 7 years 3 - 7 years
13.2 The gross carrying amount (cost) of fully amortised intangible assets that are still in use is Rs. 3,260.094
608.625
7,347,691
488.175
35.697
10,666,838
1,263,307
(615.049)
(1,697,826)
9,617,270
435.330
82.127
192.000
1,157,787
1,867,244
4,865,584
(3,633,072)
1,232,512
1,232,512
395.186
(469.860)
(51)
1,157,787
5,262,979
(4,105,192)
1,157,787
14% to 33.33%
3 - 7 years
2021 2020
14. OTHER ASSETS
Income/ mark-up accrued in local currency 24,316,843

Income/ mark-up accrued in foreign currencies 313.062
Advances, deposits, advance rent and other prepayments 2,253,754
Compensation for delayed income tax refunds 133.809
Non-banking assets acquired in satisfaction of claims 14.1 2,170,938
Branch adjustment account –
Mark to market gain on forward foreign exchange contracts 4,335,561
Unrealized gain on derivative financial instruments 25 304.893
Acceptances 20 25,430,129
Receivable from the pension fund 38.4 3,218,426
Clearing and settlement accounts 5,553,219
Claims receivable against fraud and forgeries 1,117,067
Others 2,738,937
71,886,638
Less: Provision held against other assets 14.2 2,709,281
Other Assets (net of provision) 69,177,357
Surplus on revaluation of non-banking assets
acquired in satisfaction of claims 703.370
Other Assets - total 69,880,727
14.1 Market value of Non-banking assets acquired

in satisfaction of claims 2,785,535
Non-banking assets acquired in satisfaction of claims of the Group are revalued as at December 31, 2021 by independent val
(Material Design Services and J&M Associates) on the basis of market value.
2021 2020
14.1.1 Non-banking assets acquired in
satisfaction of claims
Additions –
Revaluation 259.321
Disposals (1,481,479)
Depreciation 31 (35.544)
(Charge) / reversal of impairment 6.323
14.1.2 Gain on disposal of non-banking assets

acquired in satisfaction of claims
Disposal proceeds 2,052,928
Less
- Revalued amounts 1,493,844
- Accumulated depreciation (12.365)
1,481,479
Gain 30 571.449
0
Rupees in '000)
19,451,779
311.024
2,524,851
133.809
3,277,778
421.204
4,847,284
517.033
22,747,369
3,370,179
2,698,271
1,087,306
3,134,359
64,522,246
2,582,686
61,939,560
854.231
62,793,791
4,036,914
ued as at December 31, 2021 by independent valuers
e.
0
Rupees in '000)
3,838,230
84.000
183.915
(35.024)
(30.049)
(4.158)
4,036,914
39.000
35.820
(796)
35.024
3.976
2021 2020
14.2 Provision held against other assets
Non banking assets acquired in satisfaction of claims
88.773
Claims receivable against fraud and forgeries 486.976
Others 2,133,532
2,709,281
14.2.1 Movement in provision held against other assets

Charge for the year 56.128
Reversals (25.036)
33 31.092
Amount written off (991)
Exchange and other adjustments 96.494
15. CONTINGENT ASSETS
There were no contingent assets of the Group as at December 31, 2021 (2020: Nil).
2021 2020
16. BILLS PAYABLE

In Pakistan 26,437,824
Outside Pakistan 48.621
26,486,445
17. BORROWINGS
Secured
Borrowings from State Bank of Pakistan Under Export Refinance
Scheme 17.1 47,986,546
Under Long Term Financing Facility 17.2 23,577,802

Under Renewable Energy Performance Platform 17.3 1,536,207
Under Refinance Scheme For Payment Of Wages & Salaries 17.4 6,660,043
Under Temporary Economic Refinance Facility 17.5 28,773,614
Under Refinance Facility For Combating Covid-19 17.6 42.817
Under Financing Facility For Storage Of Agricultural Produce 17.7 147.260
108,724,289
Bai Muajjal 17.8 44,809,236
Repurchase agreement borrowings 17.9 116,920,102
Total secured* 270,453,627
Unsecured
Borrowings from other Financial Institution 17.10 464.272
Call Borrowings 17.11 2,767,152
Overdrawn Nostro Accounts 1,682,663
Musharaka Arrangements 17.12 7,368,882
Others 162.286
Total unsecured 12,445,255
17.13 282,898,882
*Details of secured balances due to financial institutions relating to MCB Islamic Bank Limited have been
mentioned in Annexure II of these consolidated financial statements.
17.1 The Group has entered into agreements for financing with the State Bank of Pakistan (SBP) for extending export fin
to customers. As per the agreements, the Group has granted SBP the right to recover the outstanding amount from the Group at the date
maturity of the finance by directly debiting the current account maintained by the Group with SBP. These borrowings are repayable wi
six months from the deal date. These carry mark up rates ranging from 1.0% to 2.0% per annum (2020: 1.0% to 2.0% per annum)
17.2 These borrowings have been obtained from the SBP for providing financing facilities to exporters for adoption of new technol
and modernization of their plant and machinery. As per the agreements, the Group has granted SBP the right to recover the outstanding
amount from the Group at the date of maturity of the finance by directly debiting the current account maintained by the Bank with SBP
These borrowings are repayable within a period ranging from 3 years to 10 years. These carry mark up rates ranging from 2.0% to 3.50
annum (2020: 2.0% to 3.50% per annum)
17.3 These borrowings have been obtained from the SBP for providing financing facilities to customers against renewable energy
projects. As per the agreements, the Group has granted SBP the right to recover the outstanding amount from the Group at the date of
maturity of the finance by directly debiting the current account maintained by the Group with SBP. These borrowings are repayable wi
maximum period of twelve years with two years of maximum grace period from date of disbursement. These carry mark up r
2% per annum (2020: 2.0% per annum)
17.4 These borrowings have been obtained from the SBP for providing financing facilities to help businesses in payment o
wages and salaries to their workers and employees for supporting continued employment. As per the agreements, the Group has grante
the right to recover the outstanding amount from the Group at the date of maturity of the finance by directly debiting the current accoun
maintained by the Group with SBP. These borrowing are repayable in 8 equal quarterly installments beginning from January 2021. The
carry mark up rates ranging from 0% to 2% per annum (2020: 0% to 2.0% per annum)
17.5 These borrowings have been obtained from the SBP for providing concessionary refinancing facility to the industry for purcha
new imported and locally manufactured plant & machinery to set up new projects. As per the agreements, the Group has granted SBP t
right to recover the outstanding amount from the Group at the date of maturity of the finance by directly debiting the current account
maintained by the Bank with SBP. These borrowings are repayable within a period of ten years including a grace period of up
years. These carry mark up rate of 1% per annum (2020: 1.0% per annum).
17.6 These borrowings have been obtained from the SBP under a scheme to provide combat the emergency refinance facil
hospitals & medical centre to develop capacity for the treatment of COVID-19 patients. As per the agreements, the Group has granted
the right to recover the outstanding amount from the Bank at the date of maturity of the finance by directly debiting the curre
account maintained by the Bank with SBP. These carry mark-up at 0% per annum and are due to mature latest by August 2025.
17.7 These borrowings have been obtained from SBP under “Financing Facility for Storage of Agricultural Produce (FFSAP)” to
encourage Private Sector to establish Silos, Warehouses and Cold Storages. As per the agreements, the Group has granted SBP the righ
recover the outstanding amount from the Group at the date of maturity of the finance by directly debiting the current account maintaine
the Group with SBP. These borrowings are repayable within a period ranging from 3 years to 10 years. These carry mark up rates rang
from 2.50% to 3.50% per annum (2020: 2.50% to 3.50% per annum).
17.8 These carry profit rates ranging from 7.30% to 7.35% per annum and are due to mature latest by June
2022. These are secured against government securities of carrying value of Rs. 43,930.974 million.
17.9 These carry mark-up rates ranging from 5.10% to 10.70% per annum (2020: 6.15% to 7.25% per annum) and are secured agai
government securities of carrying value of Rs. 116,508.613 million (2020: Rs. 92,279.556 million). These are repayable latest by Marc
2022.
00)
95.095
478.773
2,008,818
2,582,686
2,604,137
54.269
(77.917)
(23.648)
(16.591)
18.788
2,582,686
00)
26,383,624
67.889
26,451,513
37,844,720
22,596,183
74.760
11,789,824
2,878,487
–
191.254
75,375,228
–
92,225,530
167,600,758
1,720,341
319.669
368.920
14,405,366
162.286
16,976,582
184,577,340
mited have been
of Pakistan (SBP) for extending export finance

outstanding amount from the Group at the date of
with SBP. These borrowings are repayable within
annum (2020: 1.0% to 2.0% per annum)
lities to exporters for adoption of new technologies

anted SBP the right to recover the outstanding
ent account maintained by the Bank with SBP.
carry mark up rates ranging from 2.0% to 3.50% per
lities to customers against renewable energy

anding amount from the Group at the date of
with SBP. These borrowings are repayable within a
date of disbursement. These carry mark up rate of
ng facilities to help businesses in payment of

. As per the agreements, the Group has granted SBP
finance by directly debiting the current account
nstallments beginning from January 2021. These
y refinancing facility to the industry for purchase of

r the agreements, the Group has granted SBP the
nce by directly debiting the current account
d of ten years including a grace period of upto 2
rovide combat the emergency refinance facility to

As per the agreements, the Group has granted SBP
f the finance by directly debiting the current
e due to mature latest by August 2025.
torage of Agricultural Produce (FFSAP)” to
greements, the Group has granted SBP the right to
directly debiting the current account maintained by
rs to 10 years. These carry mark up rates ranging
mature latest by June

74 million.
5% to 7.25% per annum) and are secured against
6 million). These are repayable latest by March
17.10 These carry mark-up rates of 1% per annum (2020: 1.90% to 4.00% per annum). These are repayable
latest by February 2023.
17.11 These carry mark-up at the rate of 6.00% to 10.70% per annum (2020: 1.15% per annum). These are
repayable by January 2022.
17.12 This includes Musharaka arrangements with banks carrying profit at expected rates ranging from 9.80% to 10.45% per annum (2020: 6.7
to 7.20% per annum) and having maturity till February 03, 2022.
2021 2020
(Rupees in '000)
279,404,217 182,091,272
3,494,665 2,486,068
282,898,882 184,577,340
17.13 Particulars of borrowings with respect to currencies
In local currency
In foreign currencies
18. DEPOSITS AND OTHER ACCOUNTS

2021 2020
In local In foreign Total In local In foreign Total
(Rupees in '000)
Customers

Term deposits 109,600,671 12,107,066 121,707,737 89,353,999 14,182,837
Others 30,673,250 3,062,911 33,736,161 26,013,457 3,218,232
1,368,815,585 133,265,809 1,502,081,394 1,230,369,447 121,159,305 1,351,528,752
Current deposits 9,317,311 1,472,847 10,790,158 11,033,694 659.230
Savings deposits 11,808,667 117.895 11,926,562 16,530,222 117.569
Term deposits 3,066,268 6,319,339 9,385,607 4,557,468 4,090,613
Others – 402.950 402.950 – 220.413
24,192,246 8,313,031 32,505,277 32,121,384 5,087,825 37,209,209
1,393,007,831 141,578,840 1,534,586,671 1,262,490,831 126,247,130 1,388,737,961

2021 2020
(Rupees in '000)
- Individuals 958,717,425 873,722,061

- Government (Federal and Provincial) 81,069,556 60,113,810
- Public Sector Entities 96,652,947 87,102,803
- Banking Companies 4,996,116 4,893,635
- Non-Banking Financial Institutions 27,509,161 32,315,574
- Private Sector 365,641,466 330,590,078
1,534,586,671 1,388,737,961
18.2 Deposits and other accounts include deposits eligible to be covered under the Deposits Protection insurance / takaful arrangements
amounting to Rs 1,054,566.518 million (2020: Rs 957,118.596 million)
able
are
9.80% to 10.45% per annum (2020: 6.70%
182,091,272
2,486,068
184,577,340
481,759,868
737,000,359
103,536,836
29,231,689
121,159,305 1,351,528,752
11,692,924
16,647,791
8,648,081
220.413
5,087,825 37,209,209
126,247,130 1,388,737,961
873,722,061
60,113,810
87,102,803
4,893,635
32,315,574
330,590,078
1,388,737,961
n insurance / takaful arrangements
19. DEFERRED TAX LIABILITIES 2021
(Rupees in '000)
At January Recognised in
Note 01, 2021 P&L A/C
Taxable Temporary differences on
- Surplus on revaluation of fixed assets 23.1 1,329,511 (68.447) 152.202 1,413,266

non-banking assets 23.2 298.982 (159.971) 135.304 274.315
- Accelerated tax depreciation 2,054,509 242.881 – 2,297,390
- Receivable from pension fund 1,179,562 386.088 (310.465) 1,255,185
- Business combination 705.218 – – 705.218
- Investments in associated undertaking 1,325,520 350.777 114.984 1,791,281
6,893,302 751.328 92.025 7,736,655
Deductible Temporary differences on
- Tax losses carried forward (772.357) 178.175 – (594.182)
- Provision against advances (2,786,856) 778.721 – (2,008,135)
- Deficit on revaluation of investments 23 4,523,498 – (7,589,814) (3,066,316)
- Minimum Tax and WWF (366.547) (122.693) – (489.240)
597.738 834.203 (7,589,814) (6,157,873)
7,491,040 1,585,531 (7,497,789) 1,578,782
2020
At January Recognised in Recognised in At December Note 01, 2020
P&L A/C OCI 31, 2020
(Rupees in '000)
Taxable Temporary Differences on

- Surplus on revaluation of fixed assets 23.1
non-banking assets 23.2
- Accelerated tax depreciation
- Receivable from pension fund
- Business combination
- Investments in associated undertaking
- Surplus on revaluation of investments 23
Deductible Temporary Differences on
- Tax losses carried forward
- Provision against advances 9,132,706 236,826 2,047,268 11,416,800
- Minimum Tax and WWF (2,918,483) (1,007,277) – (3,925,760)
6,214,223 (770,451) 2,047,268 7,491,040
1,390,542
237,181
1,961,113
1,261,793
705,218
1,247,340
2,329,519
(61,031)
(2,570)
93,396
119,428
– 87,603
–
–
64,371
– (201,659)
– (9,423)
2,193,979
1,329,511
298,982
2,054,509
1,179,562
705,218
1,325,520
4,523,498
(949,800)
(1,726,151)
(242,532)
177,443
(1,060,705)
(124,015)
–
–
–
(772,357)
(2,786,856)
(366,547)
21
in '000)
Recognised in At December
OCI 31, 2021
1,413,266
274.315
2,297,390
1,255,185
705.218
1,791,281
7,736,655
(594.182)
(2,008,135)
(3,066,316)
(489.240)
(6,157,873)
1,578,782
ber Note 01, 2020
47,268 11,416,800
– (3,925,760)
047,268 7,491,040
2021 2020
20. OTHER LIABILITIES
Mark-up/ return/ interest payable in local currency 6,100,587 2,884,255

Mark-up/ return/ interest payable in foreign currencies 178.437 254.433
Unearned commission and income on bills discounted 862.173 252.312
Accrued expenses 6,905,279 6,888,435
Provision for taxation ( provisions less payments) 8,627,030 10,130,229
Workers’ Welfare Fund 20.1 9,931,139 8,838,684
Acceptances 14 25,430,129 22,747,369
Unclaimed/dividend payable 2,027,825 1,697,408
Mark to market loss on forward foreign
exchange contracts 4,397,120 4,618,138
Unrealized loss on derivative financial instruments 25 302.365 513.343
Staff welfare fund 4.755 5.598
Branch adjustment account 14 238.420 –
Provision for employees’ compensated absences 38.4 1,100,865 919.407
Provision for post retirement medical benefits 38.4 1,982,169 2,004,122
Provision for employees’ contributory
benevolent scheme 38.4 197.712 222.084
Retention money 12.473 20.657
Insurance payable against consumer assets 736.768 698.949
Unclaimed balances 755.141 877.552
Duties and taxes payable 4,344,738 1,860,730
Charity fund balance 8.823 46.615
Provision against off-balance sheet obligations 46.319 46.188
Security deposits against lease 1,506,241 1,283,999
Lease liability against right of use assets 10,059,815 11,268,508
Clearing and settlement accounts 6,234,150 7,421,975
Others 7,011,566 5,526,168
99,002,039 91,027,158
20.1 Supreme Court of Pakistan vide its order dated November 10, 2016 has held that the amendments made in the law introduced by the Fed
Government for the levy of Workers Welfare Fund were not lawful. The Federal Board of Revenue has filed review petitions against this order w
are currently pending.
Legal advice obtained on the matter indicates that consequent to filing of these review petitions the judgment may not currently be trea
as conclusive. Accordingly, the Group maintained its provision in respect of WWF.
21. SHARE CAPITAL

21.1 Authorized Capital
2021 2020 2021 2020

1,500,000,000 1,500,000,000 Ordinary shares of Rs. 10 each 15,000,000

2,884,255
254.433
252.312
6,888,435
10,130,229
8,838,684
22,747,369
1,697,408
4,618,138
513.343
5.598
–
919.407
2,004,122
222.084
20.657
698.949
877.552
1,860,730
46.615
46.188
1,283,999
11,268,508
7,421,975
5,526,168
91,027,158
ents made in the law introduced by the Federal
s filed review petitions against this order which
ons the judgment may not currently be treated
20
15,000,000
21.2 Issued, subscribed and paid up
2021 2020 2021 2020
Ordinary shares
197,253,795 Fully paid in cash 915,776,953 Issued as bonus
197,253,795 shares 1,972,538
915,776,953 72,029,258 Issued for consideration other than cash 9,157,769
72,029,258 1,185,060,006 720,293
1,185,060,006 11,850,600
21.3 The movement in the issued, subscribed and paid-up capital during the year is as follows:
2021 2020 2021 2020
1,185,060,006 Opening balance at January 01

1,185,060,006 1,185,060,006 Closing balance at December 31 11,850,600
1,185,060,006 11,850,600
21.4 Number of shares held by the associated undertakings as at December 31, are as follows:
2021 2020
(Number of shares)
Adamjee Insurance Company Limited 55,196,435 47,827,287
Nishat Mills Limited 88,015,291 88,015,291

Siddiqsons Limited 11,271,920 14,276,462
Nishat (Aziz Avenue) Hotels and Properties Limited 434.176 141.950
Nishat Real Estates Development Company (Private) Limited 68.900 54.500
Adamjee Life Assurance Company Limited 1,200,000 –
156,186,722 150,315,490
2021 2020
22. RESERVES
Share premium 23,973,024 23,973,024

Non- distributable capital reserve - gain on
bargain purchase option 22.1 908.317 908.317
Exchange translation reserve 3,832,533 2,950,183
Statutory reserve 22.2 37,729,718 34,628,527
General reserve 18,600,000 18,600,000
85,043,592 81,060,051
22.1 Under IFRS-3 a bargain purchase represents an economic gain which should be immediately recognized by the acquire
income. However, the amount of bargain purchase gain was not taken to the profit and loss account as the SBP, through its letter
BPRD(R&PD)/2017/14330 dated June 13, 2017 recommended that the amount of gain may be routed directly into equity as a Non-
distributable Capital Reserve (NCR). The NCR may become available for distribution through a stock dividend only with prior approv
the SBP. The Group, before distribution of the gain as a stock dividend, may adjust any subsequent provisions/deficit, assessed by the
Group or recommended by the Banking Inspection Department of SBP, in the acquired assets and liabilities of NIB Bank Limited agai
the NCR.
22.2 Statutory reserve represents amount set aside as per the requirements of section 21 of the Banking
Companies Ordinance, 1962.
2020
upees in ‘000)
1,972,538
9,157,769
720,293
11,850,600
llows:
11,850,600
11,850,600
1, are as follows:
47,827,287
88,015,291
14,276,462
141.950
54.500
–
150,315,490
s in '000)
23,973,024
908.317
2,950,183
34,628,527
18,600,000
81,060,051
be immediately recognized by the acquirer as
account as the SBP, through its letter
be routed directly into equity as a Non-
gh a stock dividend only with prior approval of
equent provisions/deficit, assessed by the
s and liabilities of NIB Bank Limited against
of the Banking
2021 2020
23. SURPLUS ON REVALUATION OF ASSETS
Surplus / (deficit) on revaluation of

- Available for sale securities 10.1 (7,862,348)
- Fixed Assets 23.1 20,589,804
- Associated undertaking 788.174
14,219,000
Deferred tax on surplus / (deficit) on revaluation of:
- Available for sale securities 19 (3,066,316)
- Fixed Assets 23.1 1,413,266
- Non-banking assets acquired in satisfaction
of claims 23.2 274.315
- Associated undertaking 372.046
(1,006,689)
15,225,689
23.1 Surplus on revaluation of fixed assets
Surplus on revaluation of fixed assets as at January 01 20,856,881

Recognised during the year –
Transferred to unappropriated profit in respect of
incremental depreciation charged during
the year - net of deferred tax (83.370)
Related deferred tax liability on incremental
depreciation charged during the year (53.728)
Surplus on revaluation of fixed assets as at December 31 20,589,804
- revaluation as at January 01 1,329,511
- recognised during the year –
- incremental depreciation charged during the year (53.728)
19 1,413,266
19,176,538
23.2 Surplus on revaluation of non-banking
assets acquired in satisfaction of claims
Surplus on revaluation as at January 01 854.231
Recognised during the year 259.321
Surplus on revaluation as at December 31 703.370
- revaluation as at January 01 298.982
- revaluation recognised during the year 101.135
19 274.315
429.055
000)
12,924,291
20,856,881
854.231
577.001
35,212,404
4,523,498
1,329,511
298.982
257.062
6,409,053
28,803,351
21,031,256
–
(22.544)
(90.800)
(48.892)
(12.139)
20,856,881
1,390,542
–
–
(12.139)
(48.892)
1,329,511
19,527,370
677.660
183.915
(4.774)
(2.570)
854.231
237.181
64.371
–
(2.570)
298.982
555.249
2021 2020
24. CONTINGENCIES AND COMMITMENTS
- Guarantees 24.1 194,370,616

- Commitments 24.2 422,956,200
- Other contingent liabilities 24.3 26,189,566
643,516,382
24.1 Guarantees:
Financial guarantees 158,777,702

Performance guarantees 29,097,931
Other guarantees 6,494,983
194,370,616
24.2 Commitments:
Documentary credits and short-term
trade-related transactions
- letters of credit 192,773,466
- forward foreign exchange contracts 24.2.1 218,878,371
- forward government securities transactions 24.2.2 5,098,200
- derivatives (notional) 24.2.3 4,434,780
- commitments to extent credit 24.2.4 708.954
Commitments for acquisition of:
- operating fixed assets 836.275
- intangible assets 225.794
422,955,840
24.2.1 Commitments in respect of forward
foreign exchange contracts
Purchase 120,320,899
Sale 98,557,472
218,878,371
24.2.2 Commitments in respect of government

securities transactions
Purchase 5,098,200
Sale –
5,098,200
Rupees in '000)
186,572,634
525,404,920
28,397,749
740,375,303
149,925,920
29,835,397
6,811,317
186,572,634
180,272,534
327,646,242
11,089,775
4,471,383
1,007,451
710.570
206.965
525,404,920
172,137,589
155,508,653
327,646,242
11,089,775
–
11,089,775
2021 2020
(Rupees in '000)
24.2.3 Commitments in respect of derivatives

FX options (notional)
Purchase Sale 1,432,779

1,432,779
2,865,558
Cross Currency Swaps (notional)
Purchase Sale 784,611

784,611
1,569,222
4,434,780
24.2.4 The Group makes commitments to extend credit in the normal course of its business but these being revocable commitments do not attra
significant penalty or expense if the facility is unilaterally withdrawn.
2021 2020
Claims against the Group not
acknowledged as debts 24.3.1
26,189,566
24.3.1 These mainly represent counter claims by borrowers for damages and other claims relating to banking transactions. Based on legal advic
or internal assessments, management is confident that the matters will be decided in the Group favour and the possibility of any adverse outcome
remote. Accordingly, no provision has been made in these consolidated financial statements.
24.4 For assessment year 1988-89 through tax year 2020, the tax department disputed Group treatment on certain issues, where the Group app
are pending at various appellate forums, entailing an additional tax liability of Rs. 1,497 million (2020: Rs. 6,033 million). Such issues inter alia
principally include disallowance of expenses for non deduction of withholding tax and non availability of underlying records, provision for non
performing loans, attribution of expenses to heads of income other than income from business and disallowance of credit for taxes paid in advanc
deducted at source.
The Group has filed appeals which are pending at various appellate forums. In addition, certain decisions made in favour of th
Group are being contested by the department at higher forums. No provision has been made in the consolidated financial statements
regarding the aforesaid additional tax demand and already issued favourable decisions where the department is in appeal, as th
management is of the view that the issues will be decided in the Group’s favour as and when these are taken up by the Appellate Autho
24.5 Amortisation of goodwill and other intangibles amounting to Rs 28.08 billion of Ex. NIB
Issue of goodwill and other related assets amortization for few years has been assessed in Holding company favour at appellate forums during the
however, the tax department has filed appeal against these decisions. The management has not recorded any tax benefit because the issue has not
attained finality.
182,800
182,800
365.600
1,975,311
2,130,472
4,105,783
4,471,383
these being revocable commitments do not attract any
000)
28,397,749
ng to banking transactions. Based on legal advice and /
vour and the possibility of any adverse outcome is
treatment on certain issues, where the Group appeals

2020: Rs. 6,033 million). Such issues inter alia
bility of underlying records, provision for non
d disallowance of credit for taxes paid in advance /
addition, certain decisions made in favour of the

made in the consolidated financial statements
ons where the department is in appeal, as the
when these are taken up by the Appellate Authorities.
B
g company favour at appellate forums during the year,
corded any tax benefit because the issue has not
25. DERIVATIVE INSTRUMENTS
25.1 Product Analysis
2021
Cross currency swaps Interest rate swaps FX options
Notional Mark to Notional

Counterparties principal market principal
gain/loss
(Rupees in '000)
With Banks for
Hedging 784.611 298.956 – – 1,432,779

Market Making – – – – –
Hedging – – – – –
Market Making 784.611 (296.428) – – 1,432,779
Total
Hedging 784.611 298.956 – – 1,432,779
Market Making 784.611 (296.428) – – 1,432,779
2020
Cross currency swaps Interest rate swaps FX options
Notional Mark to Notional
Counterparties principal market principal
gain/loss
(Rupees in '000)
With Banks for
Total
1,975,311 512.508 – – 182.800 4.525

– – – – – –
– – – – – –
2,130,472 (508.818) – – 182.800 (4.525)
1,975,311 512.508 – – 182.800 4.525
2,130,472 (508.818) – – 182.800 (4.525)
1
rate swaps FX options
Mark to Notional Mark to

market principal market
gain/loss gain/loss
5.937
–
–
(5.937)
5.937
(5.937)
FX options
Mark to Notional Mark to
market principal market
gain/loss gain/loss
25.2 Maturity Analysis
2021
No. of Notional Mark to Market Negative
contracts principal Positive Net
(Rupees in '000)
Remaining Maturity
Upto 1 month 24 1,183,628 (843) 843

1 to 3 months 32 1,483,069 (4.097) 4.097
3 to 6 months 8 343.423 (40.122) 40.378
6 month to 1 Year 2 330.429 (95.142) 96.369
2 to 3 Years 2 1,094,231 (162.161) 163.206
Total 68 4,434,780 (302.365) 304.893
2020
No. of Notional Mark to Market contracts principal
Negative Positive Net
(Rupees in '000)
Remaining Maturity
Upto 1 month 8 924.787 (54.638)
1 to 3 months 4 120.859 (1.545)
3 to 6 months 4 421.010 (71.467)
6 month to 1 Year 3 329.626 (23.640)
1 to 2 Years 4 1,094,545 (220.328)
3 to 5 Years 2 1,580,556 (141.725)
Total 25 4,471,383 (513.343)
25.3 Risk management related to derivatives is discussed in note 45.5.
2021 2020
(Rupees in '000)
26. MARK-UP/RETURN/INTEREST EARNED
Loans and advances 40,072,099 50,061,684

Investments 91,855,343 94,248,954
Lendings to financial institutions 553.052 1,092,986
Balances with banks 128.809 368.827
132,609,303 145,772,451
27. MARK-UP/RETURN/INTEREST EXPENSED
Deposits 50,999,880 59,436,050

Borrowings 10,364,392 6,610,704
Cost of foreign currency swaps against
foreign currency deposits / borrowings 1,609,774 2,386,644
Unwinding cost of liability against right-of-use assets 1,257,256 1,495,614
64,231,302 69,929,012
–
–
256
1.227
1.045
2.528
contracts principal
54.840 202
1.545 –
71.915 448
18.177 (5.463)
226.567 6.239
143.989 2.264
517.033 3.690
50,061,684
94,248,954
1,092,986
368.827
145,772,451
59,436,050
6,610,704
2,386,644
1,495,614
69,929,012
2021 2020
28. FEE & COMMISSION INCOME
Branch banking customer fees 2,864,064

Consumer finance related fees 531.005
Card related fees (debit and credit cards) 3,051,196
Credit related fees 279.009
Investment banking fee 206.755
Commission on trade 1,477,332
Commission on guarantees 650.657
Commission on cash management 726.239
Commission on remittances including
home remittances 999.448
Commission on utility bills 80.763
Commission on Bancassurance 1,532,115
Rent on lockers 248.475
Commission on investments services 806.981
Other commission 237.393
13,691,432
29. GAIN ON SECURITIES - NET
Realised 29.1 269.861

Unrealised (Loss) / Gain - Held For Trading 10.1 (7.026)
262.835
29.1 Realised gain / (loss) on:
Federal Government Securities 383.592

Non Government Debt Securities 40
Shares and units (113.771)
269.861
30. OTHER INCOME
Rent on property 34.131

Gain on sale of fixed assets - net 107.783
Gain / (loss) on termination of lease liability
against right of use assets 149.129
Gain on conversion of Ijarah agreements 20.761
Gain on sale of non banking assets - net 14.1.2 571.449
883.253
Rupees in '000)
1,924,884
431.539
3,206,215
60.484
161.192
1,353,430
608.822
615.001
1,020,949
79.791
1,384,111
230.996
694.750
199.327
11,971,491
3,286,027
110.269
3,396,296
3,438,493
(76.066)
(76.400)
3,286,027
67.310
73.164
(15.637)
63.290
3.976
192.103
2021 2020
31. OPERATING EXPENSES
Total compensation expense 31.1 19,367,589

Property expense
Rent and taxes 214.326
Insurance/ Takaful 57.399
Utilities cost 1,698,101
Fuel expense generators 439.089
Security (including guards) 1,724,713
Repair and maintenance (including janitorial charges) 822.431
Depreciation on right-of-use assets 12.3 1,709,613
7,612,300
Information technology expenses
Software maintenance 1,349,334
Hardware maintenance 215.094
Amortisation 13.1 480.826
Network charges 628.853
Insurance/ Takaful 5.728
3,438,911
Directors’ fees and allowances 40.2 46.300
Fees and allowances to Sharia Board members 10.433
Legal and professional charges 310.962
Outsourced services costs 37.1 902.214
Travelling and conveyance 345.446
NIFT clearing charges 172.508
Depreciation on non-banking assets acquired
in satisfaction of claims 14.1.1 35.544
Training and development 41.787
Postage and courier charges 278.075
Communication 399.504
Stationery and printing 656.178
Marketing, advertisement & publicity 804.122
Donations 31.2 8.165
Auditors’ remuneration 31.3 72.449
Cash transportation charges 860.210
Repair and maintenance 447.841
Subscription 36.862
Entertainment 251.200
Remittance charges 209.080
Brokerage expenses 77.053
Card related expenses 992.445
CNIC verification charges 262.250
Insurance/ Takaful 1,773,782
Others 294.874
10,170,932
40,589,732
Total cost for the year included in other operating expenses relating to outsourced activities is Rs 217.816 million (2020: Rs 280.848 million) wh
pertains to payments to companies incorporated in Pakistan. Outsourcing shall have the same meaning as specified in BPRD Circular No. 06 of 2
This includes cost of outsourcing pertaining to Euronet Private Limited (a related party) is Rs 196.446 million (2020: 275.517 million)
'000)
18,201,007
214.770
66.237
1,350,228
334.634
1,444,492
758.318
1,697,826
845.654
6,712,159
1,304,566
342.392
688.155
469.860
705.798
6.294
3,517,065
50.060
9.417
312.026
892.810
322.162
186.480
869.411
30.049
43.062
286.548
353.513
624.477
713.479
112.596
41.295
709.262
404.247
43.581
225.692
211.631
69.542
829.055
128.614
1,570,511
294.166
9,333,686
37,763,917
217.816 million (2020: Rs 280.848 million) which

aning as specified in BPRD Circular No. 06 of 2019.
6.446 million (2020: 275.517 million)
2021 2020
Fees and allowances 543.744

Managerial remuneration
i) Fixed 13,763,999
ii) Variable - cash bonus / awards 2,344,413
Charge / (reversal) for defined benefit plan 289.144
Contribution to defined contribution plan 491.210
Commission 547.162
Staff group insurance 436.506
Rent and house maintenance 428.386
Medical 70.096
Conveyance 339.928
19,254,588
Sign-on bonus 31.1.1 2.501
Severance allowance 31.1.2 110.500
19,367,589
31.1.1 During the year sign on bonus was paid to 5 employees (2020: 4).
31.1.2 Severance allowance pertains to 6 employees (2020: 1).
31.2 Detail of donations made during the year is as follows:
2021 2020
(Rupees in '000)

8.165
31.2.1 None of the directors, executives and their spouses had any interest in the donees to whom donations
were given during the year.
2021 2020
(Rupees in '000)
31.3 Auditors’ remuneration
Audit fee 16.500

Fee for audit of foreign branches 11.514
Fee for audit of subsidiaries 15.725
Special certifications and sundry advisory services –
Tax services 26.235
Sales tax on audit fee 825
Out-of-pocket expenses 1.650
72.449
0
Rupees in '000)
488.500
12,914,590
2,640,316
74.827
455.012
350.803
433.891
419.324
68.143
351.101
18,196,507
3.700
800
18,201,007
lows:
–
95.000
9.996
5.000
–
–
2.600
112.596
ees to whom donations
16.500
10.272
11.575
473
–
825
1.650
41.295
2021 2020
32. OTHER CHARGES
Penalties of State Bank of Pakistan 451.496

VAT & National Building tax & Crop Insurance Levy 49.907
Education cess 23.936
525.339
33. PROVISIONS / (REVERSALS) & WRITE OFFS - NET

Provisions / (reversals) against balance with banks 6.599
(Reversals) for diminution in value of investments 10.3.1 (770.357)
(Reversals) / provisions against loans & advances 11.4 (4,560,702)
(Reversals) against off balance sheet items (2.643)
Provisions / (reversals) against other assets 14.2.1 31.092
Recovery of written off / charged off bad debts (176.768)
(5,472,779)
34. TAXATION
Current 20,202,269
Prior years (6.822)
Deferred 19 1,585,531
Share of tax of associates 166.668
21,947,646
34.1 Relationship between tax expense
and accounting profit

Accounting profit for the year 53,275,400
Tax rate 39%

Tax on income 20,777,406
Tax effect of permanent differences 176.083
Tax effect of prior years reversals (6.822)
Others 1,000,979
Tax charge for the year 21,947,646
(Rupees in '000)
35. BASIC AND DILUTED EARNINGS PER SHARE
Profit for the year after tax attributable to ordinary shareholders
31,179,708
(Number)
Weighted average number of ordinary shares 1,185,060,006
(Rupees)
Basic and diluted earnings per share 26.31
Diluted earnings per share has not been presented separately as the Group does not have any convertible
instruments in issue at the reporting dates.
000)
192.356
92.502
13.129
297.987
(3.547)
(69.658)
7,558,293
(448)
(23.648)
(130.948)
7,330,044
20,384,542
(8.023)
(770.451)
149.951
19,756,019
49,318,288
39%
19,234,132
75.019
(8.023)
454.891
19,756,019
(Rupees in '000)
29,410,227
(Number)
1,185,060,006
(Rupees)
24.82
ertible
2021 2020
Note
36 CASH AND CASH EQUIVALENTS

Balances with other banks
Overdrawn nostro accounts
36.1 Reconciliation of movement of liabilities to cash flows arising from financing activities
2021
Liabilities Equity Liabilities Equity
Sub- Unappropriated Non- Sub- U
ordinated Other Share Reserves profit controlling Total ordinated Other Share Reserves profit controlling
loan liabilities capital interest loan liabilities capital interest
(Rupees in '000)
Opening Balance – 91,027,158 11,850,600 81,060,051 70,498,820 778,561 – 102,405,51
Changes from Financing cash flows 255,215,190 249,000,124
Redemption of Subordinated loan Payment of – – – – – – – –

lease liability against – (2,359,330) – – – – (175,217) (2,359,330) –
right-of-use-assets – – – – (34,036,323 (34,211,54 –
Dividend paid ) 0)
Total changes from financing cash flows – (2,359,330) – – (34,036,323) (175,217) (36,570,870) – (2,327,634
Liability related (14,199,840)
Changes in Other liabilities

- Cash based – 6,197,67 – – – (330,417) – 6,197,674 –
- Dividend payable – 4 – – – – – –
- Non cash based – 330,417 – – – 3,806,120 –
3,806,12
0
Total liability related other changes Total – 10,334,211 – – (330,417) – 10,003,794 – (9,050,721
equity related other changes – – – 3,983,541 28,565,280 148,075 32,696,896 – –
Closing Balance – 99,002,039 11,850,600 85,043,592 64,697,360 751,419 – 91,027,158

261,345,010 255,215,190
2021 2020
7 175,922,469 132,053,041
8 22,554,329 29,011,521
17 (1,682,663) (368.920)
196,794,135 160,695,642
2020
bilities Equity
b- Unappropriated Non-
controlling Total
interest
000)
– 102,405,513 11,850,600 77,894,829 56,108,779 740,403
249,000,124
– – – – – – –
– (2,327,634) – – – – (113,891) (2,327,634)
– – – – (11,758,315 (11,872,206
) )
– (2,327,634) – – (11,758,315) (113,891)

(14,199,840)
– (19,148,240 – – – (92,285) – (19,148,240

– ) – – – – )
– 92,285 – – – –
10,005,234 10,005,234
– (9,050,721) – – (92,285) – (9,143,006)

– – – 3,165,222 26,240,641 152,049 29,557,912
– 91,027,158 11,850,600 81,060,051 70,498,820 778,561

255,215,190
2021 2020
(Number)
37. STAFF STRENGTH
Permanent 15.529 15.437

On Bank contract 432 130
Bank’s own staff strength at end of the year 15.961 15.567
37.1 In addition to the above, 339 (2020: 618) employees of outsourcing services companies were assigned to the Group as at the end
the year to perform services other than guarding, tea and janitorial services. Outsourced staff includes 332 (2020: 611) working domestically and
(2020: 7) working abroad.
38. DEFINED BENEFIT PLAN

38.1 General description
The Group operates the following retirement benefits for its employees:
- Pension fund - funded
- Benevolent scheme - unfunded
- Post retirement medical benefits - unfunded
- Employees compensated absence - unfunded
The plan assets and defined benefit obligations are based in Pakistan.
38.2 Number of Employees under the scheme
The number of employees covered under the following defined benefit schemes are:
2021
(Number)
- Pension fund - funded 5.731

- Benevolent scheme - unfunded 1.002
- Post retirement medical benefits - unfunded 13.612
- Employees compensated absence - unfunded 13.612
38.3 Principal actuarial assumptions
The latest actuarial valuations of the pension fund, employees’ contributory benevolent scheme, post retirement medical benefits and employee’s
compensated absences were carried out at December 31, 2021. The principal actuarial assumptions used are as follows:

Pension contributory medical compensated
fund benevolent scheme benefits absences
2021 2020 2021 2020 2021 2020 2021 2020
(%)
Discount rate 11.75 9.75 11.75 9.75 11.75 9.75 11.75 9.75
Expected rate of return on plan assets 11.75 9.75 – – – – – –

Expected rate of salary increase 9.75 7.75 9.75 7.75 – – 9.75 7.75
Expected rate of increase in pension 0-5 0-5 – – – – – –
Expected rate of increase in medical benefit – – – – 9.75 7.75 – –
15.437
130
15.567
signed to the Group as at the end of
: 611) working domestically and 7
:
2020
5.410
1.108
13.386
13.386
medical benefits and employee’s

ollows:
9.75
–
7.75
–
–
38.4 Reconciliation of (receivable from) / payable to defined benefit plans
2021 2020 2021 2020 2021 2020 2021 2020
Present value of obligations 38.5 5,031,961 5,097,744 197.712 222.084 1,982,169 2,004,122 1,100,865 919.407
Fair value of plan assets 38.6 (8,250,387) (8,467,923) – – – – – –

(Receivable) / payable 38.7 (3,218,426) (3,370,179) 197.712 222.084 1,982,169 2,004,122 1,100,865 919.407
38.5 Movement in defined benefit obligations

2021 2020 2021 2020 2021 2020 2021 2020
Obligations at the beginning
of the year 5,097,744 5,182,991 222.084 221.193 2,004,122 1,921,348 919.407

Current service cost 38.8.1 62.653 64.350 21.449 21.742 61.978 53.018 24.653
Interest cost 477.989 560.303 20.249 22.931 188.540 208.381 85.558
Benefits paid (390.586) (405.032) (28.812) (34.721) (140.756) (138.149) (83.768)
Re-measurement loss / (gain) 38.8.1 & (215.839) (304.868) (37.258) (9.061) (131.715) (40.476) 155.015
38.8.2
Obligations at end of the year 38.4 5,031,961 5,097,744 197.712 222.084 1,982,169 2,004,122 1,100,865
38.6 Movement in fair value of plan assets

2021 2020 2021 2020 2021 2020 2021 2020

Fair value at the beginning of the year Interest 8,467,92 8,788,112 – – – – –
income on plan assets Benefits paid 3 965,880 – – – – –
Re-measurement loss 38.8.2 806,581 (405,032) – – – – –
Fair value at end of the year 38.4 (390,586 (881,037) – – – – –
)
(633,531
)
8,250,38 8,467,923 – – – – –
7
38.7 Movement in (receivable) / payable under defined benefit schemes
2021 2020 2021 2020 2021 2020 2021 2020
Opening balance (3,370,179) (3,605,121) 222.084 221.193 2,004,122 1,921,348 919.407 939.495
Charge / (reversal) for the year 38.8.1 (265.939) (341.227) 39.339 41.961 250.518 261.399 265.226 112.694
Employees’ contribution – – 2.359 2.712 – – – –
Re-measurement loss / (gain)
recognised in OCI
during the year 38.8.2 417.692 576.169 (37.258) (9.061) (131.715) (40.476) – –
Benefits paid by the Group – – (28.812) (34.721) (140.756) (138.149) (83.768) (132.782)
Closing balance 38.4 (3,218,426) (3,370,179) 197.712 222.084 1,982,169 2,004,122 1,100,865 919.407
medical compensated
benefits absences
2020
919.407
–
919.407

medical compensated
benefits absences
2020
939.495
24.428
98.224
(132.782)
(9.958)
919.407
e benefits absences
2020
–
–
–
–

medical compensated
benefits absences
2020
939.495
112.694
–
–
(132.782)
919.407
38.8 Charge for defined benefit plans
38.8.1 Cost recognised in profit and loss
2021 2020 2021 2020 2021 2020 2021 2020
Current service cost 38.5 62,653 64,350 21,449 21,742 61,978 53,018 24,653 24,428
Net interest on defined benefit asset / liability (328,592) (405,577) 20,249 22,931 188,540 208,381 85,558 98,224
Employees’ contribution – – (2,359) (2,712) – – – 155,015 – (9,958)
Actuarial loss / (gain) 38.5 – – – – – –
38.7
(265.939) (341.227) 39.339 41.961 250.518 261.399 265.226 112.694
38.8.2 Re–measurements recognised in OCI during the year

2021 2020 2021 2020 2021 2020 2021 2020
Loss / (gain) on obligation –
Financial assumptions 38.5
Experience adjustments Actual return on plan (542,097
assets (389,052) (18,272) (17,065) (100,133) 107,752 – –
)
over expected interest income 38.6 (693,920) (18,986) (26,126) (31,582) (148,228) – –
326,258
Re–measurement loss / (gain) 881,037 – – – – – –
633,531
recognised in OCI 38.7
417.692 576.169 (37.258) (9.061) (131.715) (40.476) – –
38.9 Components of plan assets

2021 2020 2021 2020 2021 2020 2021 2020

Cash and cash equivalents - net Shares 133,780 24,451 – – – – – –
Open ended mutual funds units 7,929,45 8,129,575 – – – – – –
38.4 3 313,897 – – – – – –
187,154
8,250,38 8,467,923 – – – – – –
7
38.9.1 Significant risk associated with the plan assets
The Fund’s investments in equity securities and units of mutual funds are subject to price risk. These risks are regularly monitored by Trustees of
employee funds.
Employees'
compensated
absences
24,428
98,224
– (9,958)
112.694
Employees'
compensated
absences
–
–
–
its absences
–
–
–
ularly monitored by Trustees of the

38.10 Sensitivity analysis
Sensitivity analysis has been performed by varying one assumption keeping all other assumptions constant and calculating the impact o
the present value of the defined benefit obligations under the various employee benefit schemes. The increase / (decrease) in the presen
value of defined benefit obligations as a result of change in each assumption is summarized below:
Approved Employees' Post Employees'

Pension fund contributory retirement compensated
benevolent medical benefits absences
scheme
(Rupees in '000)
(297,730) (12.761) (213.180) (67.315)
335,100 14.323 263.538 75.043
76,700 – – 75.809
(72,190) – – (69.073)
191,850 – – –
(291,090) – – –
– – 145.346 –
– – (124.096) –
1% increase in discount rate 1% decrease in discount rate
1 % increase in expected rate of salary increase
1 % decrease in expected rate of salary increase
1% increase in expected rate of pension increase
1% decrease in expected rate of pension increase
1% increase in expected rate of medical benefit increase
1% decrease in expected rate of medical benefit increase
38.11 Expected contributions to be paid to the funds in the next financial year
No contributions are being made to pension fund due to surplus of fair value of plan’s assets over present value of defined obligation. N
contribution to the pension fund is expected in the next year.
38.12 Expected charge / (reversal) for the next financial year

Based on actuarial advice, management estimates that the charge / (reversal) in respect of defined benefit plans for the year ending
December 31, 2022 would be as follows:
Approved Employees' Post

Pension fund contributory retirement
benevolent scheme medical benefits
(Rupees in '000)
Expected charge / (reversal) for
the next financial year (312.272) 35.998 294.973

38.13 Maturity profile
The weighted average duration of the obligation

(in years) 7.69 7.69 7.69
38.14 Funding Policy

The Group 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 contribution
the fund, projected increase in liability associated with future service and the projected investment income of the Fund.
ions constant and calculating the impact on
es. The increase / (decrease) in the present
elow:
over present value of defined obligation. No
ined benefit plans for the year ending
Employees'
compensated
absences
es in '000)
162.927
7.69
hemes are covered by the Fund on any

lary increase, expected future contributions to
ment income of the Fund.
38.15 The defined benefit plans may expose the Group to actuarial risks such as longevity risk, investment
risk, salary increase risk and withdrawal rate risk as described below;
Investment risk The risk arises when the actual performance of the investments is lower than expectation and
thus creating a shortfall in the funding objectives.
Longevity risk The risk arises when the actual lifetime of retirees is longer than expectation. This risk is
measured at the plan level over the entire retiree population.
Salary increase risk The most common type of retirement benefit is one where the benefit is linked with final salary.
The risk arises when the actual increases are higher than expectation and impacts the liability
accordingly.
Withdrawal rate The risk of actual withdrawals varying with the actuarial assumptions can impose a risk to the
benefit obligation. The movement of the liability can go either way.
39. DEFINED CONTRIBUTION PLAN MCB Bank Limited (holding company)

The Holding company operates an approved contributory provident fund for 11,570 (2020: 11,458) employees where contributions are made by the Bank
8.33% (2020: 8.33%) and employees ranging from 8.33% to 15% per annum (2020: 8.33% to 15% per annum) of the basic salary.
The Bank also operates an approved non-contributory provident fund for 637 (2020: 687) employees who have opted for the new scheme, where contribu
are made by the employees ranging from 8.33% to 15% per annum (2020: 8.33% to 15% per annum) of the basic salary.
39.1 MCB Islamic Bank Limited (Subsidiary)
The subsidiary operates an approved contributory provident fund for 1,189 (2020: 1,384) employees. Equal monthly contributions are made both by the B
and its permanent employees to the Fund at the rate of 8.33% of the basic salaries of employees. However, an employee has an option to increase his / he
contribution upto 15% of basic salary.
40. COMPENSATION OF DIRECTORS AND KEY MANAGEMENT PERSONNEL

2021
Directors
Members Key Other material Chairman Executive Non shariah President / management risk tak
Note (other than executive board CEO* personnel controllers
CEO)
(Rupees in '000)
Fee and allowances 40.2 5.500 – 40,800 – – 1.099
Managerial Remuneration –
i) Fixed – – – 6,321 75.073 350.420
ii) Cash Bonus / Awards 40.1.1 – – – 950 55.000 176.507
Contribution to defined contribution – – – 194 – 10.616
plan & house maintenance
Rent – – – 1,047 240 30.256
Medical – – – – 2.267 2.979
Severance allowance – – – – 100.000 3.500
Overseas allowance – – – – – 29.979
Security – – – – 833 –
Commission – – – – – 1.690
Utilities – – – 233 – 3.002
Special Pay – – – 241 – –
Conveyance – – – 1,129 – –
Charge allowance – – – – – –
Fuel Allowance – – – 318 – –
Leave fare assistance – – – – – 1.213
Club membership – – – – 106 –
Others – – – – – 8.438
Total 5.500 – 40,800 10,433 233.519 619.699
Number of Persons 1 – 11 3 1 34
*Mr. Imran Maqbool completed his term as President & CEO on December 20, 2021 and Mr. Shoaib Mumtaz- Group Head CFIBG has taken ch
as Acting President & CEO of the MCB Bank (holding company) effective from December 21, 2021.
contributions are made by the Bank at
basic salary.
for the new scheme, where contributions
ary.
contributions are made both by the Bank

yee has an option to increase his / her
h President / management risk takers /

llers
10.668
–
942.308
325.537
38.183
90.592
15.461
–
598
–
62.367
18.268
11.640
44.703
2.017
10.624
7.583
1.900
56.312
1,638,761
208
z- Group Head CFIBG has taken charge
2020
Directors
Members Key Other material
Chairman Executive Non shariah President/ management risk takers/ (other than executive board CEO personnel controllers
CEO)
(Rupees in '000)
Fee and allowances 7.210 – 42,850 – –
i) Fixed – – – 5.681 72.362
ii) Cash Bonus / Awards – – – 900 50.000
Contribution to defined contribution plan – – – 177 –
Rent & house maintenance – – – 957 240
Medical – – – – 1.828
Severance allowance – – – – –
Overseas allowance – – – – –
Security – – – – 804
Commission – – – – –
Utilities – – – 213 –
Special Pay – – – 241 –
Conveyance – – – 1.020 –
Club membership – – – – 1.872
Fuel Allowance – – – 228 –
Leave fare assistance – – – – –
Others – – – – –
Total 7.210 – 42,850 9.417 127.106
Number of Persons 1 – 11 3 1
40.1.1 During the year 2021, Rs 34.20 million bonus has been deferred (2020: Rs. 26.06 million).
40.1.2 Key management personnel of subsidiaries have been presented as “Other material risk takers/
controllers.”
40.2 Remuneration paid to Directors of the Bank for participation in Board and Committee meetings
2021
For Board Committee
Board Board's BS & RM & HR & ITC PP & CR &
meeting Audit DC PRC RC CA MC
Committee
(Rupees in '000)
Mian Mohammad Mansha 4.800 – 200 – 400 – 100 – – –
Mr. S. M. Muneer 1.600 – 300 – – – – 100 – –

Mr. Tariq Rafi 2.000 – – – – – – – – –
Mian Umer Mansha 2.000 400 300 300 – 500 200 – – –
Mr. Muhammad Ali Zeb 2.000 500 - 400 400 – 300 400 – –
Mr. Yahya Saleem 4.000 – – – 200 100 – – – –
Mr. Salman Khalid Butt 4.000 – 400 400 200 500 – 400 – –
36.400 1.900 2.000 1.500 1.300 1.600 700 900 – –

CEO personnel controllers
– 942 10.111
72.362 342.162 861.129

50.000 170.969 293.927
– 9.608 34.877
240 28.190 84.950
1.828 2.414 11.639
– 800 –
– 37.559 –
804 – –
– 300 43.960
– 2.767 16.445
– – 13.123
– – 49.713
1.872 – 300
– – 11.478
– 1.213 11.679
– 5.989 27.106
127.106 602.913 1,470,437
1 34 193
takers/
CR & Wo & As Board Total

MC WC Chairman
5.500
2.000
2.000
3.700
2.200
4.000
5.300
4.300
5.900
4.400
2.500
4.500
46.300
2020
For Board Committee
Board Board's BS & RM & HR & ITC RC PP & CR & Wo & *As
meeting Audit DC PRC CA MC WC Board
Committee Chairma
n
(Rupees in
'000)
Mian Mohammad Mansha 3.840 – 300 – 300 – 400 – – 2.370
Mr. S. M. Muneer 1.700 – 100 – – – – 100 – –

Mr. Tariq Rafi 1.700 – – – – – – – 200 –
Mian Umer Mansha 1.700 500 400 500 – 500 400 – 300 –
Mr. Muhammad Ali Zeb 1.700 500 – 500 300 – 300 400 300 –
Mr. Yahya Saleem 4.466 – – – 300 200 – – – –
Mr. Salman Khalid Butt 4.586 – 400 500 – 500 – 400 – –
35.990 2.000 2.000 2.000 1,100 1,700 1.200 900 800 2.370
*During the year 2020, the Board Chairman was paid a proportionate amount of Rs 2.370 million in lieu of fixed annual remuneration
approved by the shareholders of the Group in its 62nd Annual General Meeting held on March 26, 2010. Effective from February 05, 2
in accordance with BPRD Circular No. 03 of 2019 dated August 19, 2019, the remuneration to the Chairman for attending the Board an
committee meetings was paid inline with the remuneration scale approved by the shareholders of the Group in its 72nd Annual Genera
Meeting held on March 19, 2020.
40.3 The Chairman has been provided with free use of the Group maintained car. In addition to the above, the Chief Executive and certain
executives are provided with free use of the Group's maintained cars and household equipment in accordance with the terms of their employment
40.4 Remuneration paid to Shariah Board Members

2021
Resident Non-
Chairman member Resident Total

member
(Rupees in '000)
Meeting Fees and Allowances – – – –
Other Heads
Basic salary 2.476 2.327 1.518 6.321
House rent – 1.047 – 1.047
Utilities – 233 – 233
Conveyance – 1.129 – 1.129
Fuel – 318 – 318
Special pay – 241 – 241
Bonus – 950 – 950
contribution plan – 194 – 194
Total Amount 2.476 6.439 1.518 10.433
Total Number of Persons 1 1 1 3
Total
7.210
1.900
1.900
4.300
1.500
4.000
5.860
4.966
6.386
4.866
2.200
4.972
50.060
eu of fixed annual remuneration
10. Effective from February 05, 2020
airman for attending the Board and
Group in its 72nd Annual General
e Chief Executive and certain

th the terms of their employment.
al
6.321
1.047
233
1.129
318
241
950
194
10.433
3
2020
Resident Non-
Chairman member Resident Total
member
(Rupees in '000)
Meeting Fees and Allowances – – – –

Other Heads
Basic salary 2.263 2.128
House rent – 957
Utilities – 213
Conveyance – 1.020
Fuel – 228
Special pay – 241
Bonus – 900
contribution plan – 177
Total Amount 2.263 5.864
Number of persons 1 1
4A1IR. VALUFE MEASUREMENTS
The fair value of traded investments is based on quoted market prices, except for tradable securities classified by the Group as ‘Held to Maturity’
Quoted securities classified as held to maturity are carried at amortised cost. Fair value of unquoted equity investments other than investments in
associates is determined on the basis of break up value of these investments as per the latest available financial statements.
Fair value of fixed term loans, other assets, other liabilities, fixed term deposits and borrowings cannot be calculated with sufficient
reliability due to absence of current and active market for such assets and liabilities and reliable data regarding market rates for similar
instruments. The provision for impairment of loans and advances has been calculated in accordance with the Group accounting policy a
stated in note 6.5 to these consolidated financial statements.
The maturity and repricing profile and effective rates are stated in note 45.
In the opinion of the management, the fair value of the financial assets and financial liabilities other than those carried at fair value and
disclosed in note 41.1 are not significantly different from their carrying values since assets and liabilities are either short-term in nature
re-priced over short term.
41.1 Fair value of financial assets

The Group 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 th
observable for the assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from p
Level 3: Fair value measurements using input for the asset or liability that are not based on observable market data (i.e. unobservable
inputs).
Valuation techniques used in determination of fair valuation of financial instruments within level 2

Federal Government The fair values of Treasury Bills and fixed rate Pakistan Investments Bonds are determined using
securities the PKRV rates. Floating rate PIBs are revalued using PKFRV rates. Fair values of GoP Ijarah
Sukuks and other Ijarah Sukuks
are derived using the PKISRV rates announced by the Financial Market Association (FMA)
through Reuters. These rates denote an average of quotes
received from eight different pre-defined / approved dealers / brokers.
–
1.290 5.681
– 957
– 213
– 1.020
– 228
– 241
– 900
– 177
1.290 9.417
1 3
e Group as ‘Held to Maturity’.

ents other than investments in
ements.
e calculated with sufficient

rding market rates for similar
the Group accounting policy as
those carried at fair value and

are either short-term in nature or
he inputs used in making the
or liabilities.
included within Level 1 that are

indirectly (i.e. derived from prices).
market data (i.e. unobservable
2
Term Finance and Bonds Investments in debt securities (comprising term finance certificates, bonds and any other security
issued by a company or a body corporate for the purpose of raising funds in the form of
redeemable capital) are valued on the basis of the rates announced by the Mutual Funds
Association of Pakistan (MUFAP) in accordance with the methodology prescribed by the
Securities and Exchange Commission of Pakistan.
Foreign exchange contracts The valuation has been determined by interpolating the mid rates announced by the State Bank
of Pakistan.
Derivatives The fair values of derivatives which are not quoted in active markets are determined by using
valuation techniques. The valuation techniques take into account the relevant underlying
parameters including foreign currency involved, interest rates, yield curves, volatilities, contracts
duration etc.
Unlisted Shares Breakup value determined on the basis of NAV of the company using the latest available audited
Mutual Funds Units of mutual funds are valued using the Net Asset Value (NAV) announced by the Mutual
Funds Association of Pakistan (MUFAP)
Operating fixed assets (land Land, buildings and non-banking assets acquired in satisfaction of claims are revalued on a
and building) & Non-banking periodic basis using professional valuers. The valuation is based on their assessment of the
assets acquired in satisfaction market value of the assets. The effect of changes in the unobservable inputs used in the
of claims valuations cannot be determined with certainty. Accordingly, a qualitative disclosure of
sensitivity has not been presented in these consolidated financial statements.
The table below analyses the financial and non-financial assets carried at fair values, by valuation
methods. For financial assets, the Group essentially carries its investments in debt and equity securities at fair values. Valuatio
investments is carried out as per guidelines specified by the SBP. In case of non-financial assets, the Group has adopted revaluation mo
(as per IAS 16) in respect of land and building.
2021
Carrying Level 1 Level 2 Level
value / Notional value 3
(Rupees in '000)
Financial assets - measured at fair value

Investments
Federal Government Securities 999,071,042 – 999,071,042 –
Shares and Units 22,420,832 22,420,832 – –
Non-Government Debt Securities 2,360,673 – 2,360,673 –
Foreign Securities 7,544,503 – 7,544,503 –
Financial assets - disclosed but not

Investments (HTM, unlisted ordinary
shares and associates) 31,171,461 – – –
Non - Financial Assets measured
at fair value
Operating fixed assets (land and buildings) 45,663,822 – 45,663,822 –
Non-banking assets 2,785,535 – 2,785,535 –
Off-balance sheet financial instruments -
Forward purchase of foreign exchange 120,320,899 – 4,272,640 –
Forward sale of foreign exchange 98,557,472 – 4,855,404 –
Derivatives purchase 2,217,390 – 304.893 –
Derivatives sale 2,217,390 – 302.365 –
ion
equity securities at fair values. Valuation of
ts, the Group has adopted revaluation model
Total
999,071,042
22,420,832
2,360,673
7,544,503
45,663,822
2,785,535
4,272,640
4,855,404
304.893
302.365
2020
Carrying Level 1 Level 2 Level 3
value / Notional
value
(Rupees in '000)
Financial assets - measured at fair value

Investments
Federal Government Securities 979,926,866 – 979,926,866 –
Shares and Units 20,510,813 20,510,813 – –
Non-Government Debt Securities 2,858,620 – 2,858,620 –
Foreign Securities 7,474,190 – 7,474,190 –
Financial assets - disclosed but not measured at fair value
Investments (HTM, unlisted ordinary
shares and associates) 25,447,046 – – – –
Non - Financial Assets measured

at fair value
Operating fixed assets (land and buildings) 45,595,081 – 45,595,081
Non-banking assets 4,036,914 – 4,036,914
Off-balance sheet financial instruments -
Forward purchase of foreign exchange 172,137,589 – 4,011,602
Forward sale of foreign exchange 155,508,653 – 4,240,748
Derivatives purchase 2,158,111 – 517.033

Derivatives sale 2,313,272 – 513.343
The Group policy is to recognise transfers into and out of the different fair value hierarchy levels at the date the event or cha
in circumstances that caused the transfer occurred. There were no transfers between levels 1 and 2 during the year.
(a) Financial instruments in level 1

Financial instruments included in level 1 comprise of investments in listed ordinary shares and units of mutual funds.
(b) Financial instruments in level 2

Financial instruments included in level 2 comprise of Sukuk Bonds, Pakistan Investment Bonds, Bai Muajjal, Euro Bonds, Market Trea
Bills, Term Finance certificates, FX options, Cross Currency Swaps, Interest Rate Swaps and Forward Exchange Contracts.
(c) Financial instruments in level 3

Currently, no financial instruments are classified in level 3.
Total
979,926,866
20,510,813
2,858,620
7,474,190
45,595,081 – 45,595,081
4,036,914 – 4,036,914
4,011,602 – 4,011,602
4,240,748 – 4,240,748
517.033 – 517.033
513.343 – 513.343
archy levels at the date the event or change
evels 1 and 2 during the year.
units of mutual funds.
, Bai Muajjal, Euro Bonds, Market Treasury

orward Exchange Contracts.
42. SEGMENT INFORMATION
42.1 Segment details with respect to business activities
The segment analysis with respect to business activity is as follows:
2021
Ratail Consumer Corporate Treasury International Islamic Assets Others Sub- Elimination Total Banking Banking Banking Banking Banking Manag
total
(Rupees in '000)
Profit & Loss

Net mark-up/return/profit (38,104,6 2,780,007 19,317,16 78,719,81 1,274,57 4,263,86 (4.956) 132.195 68,378,00 –
Inter segment revenue - net 62)
77,312,37 (634.693) (14,651,25
(68,680,728(130.761)3 1– – 6,785,076 1– –
Non mark-up / return / interest income 7,557,9753 2,449,023 72)
3,705,780 3)
4,720,484 860.667 117.643 692.797 1,493,741 21,598,11 –
Total Income 46,765,68 4,594,337 8,371,673 14,759,57 2,004,47 4,381,50 687.841 8,411,012 89,976,110 –
6 9 9 4 1
Segment direct expenses 23,132,04 1,645,322 612.300 385.7461,186,26 4,815,36 457.142 9,939,310 42,173,49 –
Total expenses 23,132,042 1,645,322 612.300 385.7461,186,267 4,815,361 457.142 9,939,310 42,173,490 –
2 7 1 0
Provisions / (reversals) 1,143,188 123.809 (128.002) (27.836) 245.033 (647.121) – (6,181,850) (5,472,77 –
Profit before tax 22,490,45 2,825,206 7,887,375 14,401,66 573.179 213.264 230.699 9)
4,653,552 53,275,40 –
6 9 0
Balance Sheet
Cash and Bank balances 59,335,96 487.065 263.447 97,130,09 23,726,2 15,005,3 44.580 2,484,085 198,476,7 –
Investments –3 – 9,125,927 1,000,302,9 01 33,475,8
13,646,3 58 1,242,63 4,775,381 1,062,568 98 –
Net inter segment lending 1,109,475, – – 366– 90– 16– 1– 187,703,71 1,297,179
,511 (1,297,179,
Lendings to financial institutions 894– – – 14,896,08 24,071,0 1,650,00 – 5– 40,617,11
,609 609)–
Advances - performing 100,287,9 36,615,37 426,219,3 –9 21 95,731,50
19,313,9 8.483 1,300,580 679,477,20 –
- non performing - net 79
223.751 92.1523 57
26.224 – 84
5,565,09 10
577.052 – 66
427.111 6,911,386 –
Others 38,048,05 1,846,406 26,434,56 15,021,03 1,897,356 13,820,6 970.718 36,031,575 134,070,4 –
Total Assets 1,307,371,7 39,040,99 462,069,50 1,127,349, 7 88,220,06 160,260,
99 2,266,41 232,722,44 3,419,30108 (1,297,179,
644 6 15 591 48 435 2 7 ,088 609)
Borrowings 15,037,90 – 84,434,98 163,304,7 2,872,39 16,472,9 – 775.934 282,898,8 –
7 6 58 1 06 82
Deposits and other accounts 1,260,865, 24,186,89 59,464,22 – 67,311,5 122,747, – 10.684 1,534,586 –
Net inter segment borrowing 507– 10,396,931 298,741,90 961,276,5 91 10,604,5
14,616,4 778 1,543,20 ,671 (1,297,179,
– 1,297,179
Others 31,468,23 4,457,1705 19,428,33
78 2,768,330
03 31 10,435,1
3,419,63 55 723.2057 54,367,169 127,067,2
,609 609)–
Total liabilities 1,307,371,0 39,040,99 462,069,51 1,127,349, 88,220,05 160,260,
96 2,266,41 55,153,787 3,241,73266 (1,297,179,
644 6 15 591 48 435 2 ,428 609)
Equity – – – – – – – 177,568,66 177,568,6 –
Total Equity & liabilities 1,307,371, 39,040,99 462,069,5 1,127,349, 88,220,0 160,260, 2,266,41 232,722,440 3,419,301
60 (1,297,179,
644 6 15 591 48 435 2 7 ,088 609)
Contingencies & Commitments 64,622,66 – 298,150,1 226,887,6 2,506,08 24,353,8 – 26,995,977 643,516,3 –
5 90 38 4 28 82
2020
Ratail Consumer Corporate Treasury International Islamic Assets Others Sub- Elimination Total Banking Banking Banking Banking Banking Manag
total
(Rupees in '000)
Profit & Loss (44,807,2 2,788,6 28,085,0 1,448,07 4,395,44

Net mark-up/return/profit 83,819,922 (6.607) 120.110
14) 56 51 5 6
Inter segment revenue - net 86,028,79 (486.242) (22,360,4 (69,939,99 (171.994) – – 6,929,905
Non mark-up / return / interest income 6,306,6518 2,118,0 68) 5,618,895
3,282,44 9) 813.588 678.153 833.565 190.310
Total Income 47,528,23 01
4,420,4 9,007,022 19,498,8182,089,66 5,073,59 826.958 7,240,325
Segment direct expenses 20,460,115 15
1,462,9 586.4155 368.025 9
1,309,89 4,665,259 407.873 9,776,222
Total expenses 20,460,118 11
1,462,9 586.415 368.025 8
1,309,89 4,665,250 407.873 9,776,222
Provisions / (reversals) 2,306,2488 11
113.643 2,763,15 8
(31.111) 129.368 15.2700 – 2,033,471
Profit before tax 24,761,86 2,843,8 5
5,657,45 19,161,904 650.403 393.079 419.085 (4,569,368)
9 61 5
Balance Sheet
Cash and Bank balances 58,362,11 317.242 394.030 64,577,425 21,166,5 14,868,7 25.853 1,352,516
Investments 9– –
10,578,3 978,209,25 78
14,571,0 99
27,617,9 1,269,444 3,971,457
Net inter segment lending 1,050,376, – 10 6 71 97 – 202,001,07
236 – – – – 1
Lendings to financial institutions – – – 6,137,258 11,002,1 828.790 – –
Advances - performing 94,735,20 26,845, 313,362, – 95
21,361,5 84,165,1 5.260 432.897
- non performing - net 6
171.804 772
177.613 719
2.382 – 72
4,973,95 15
731.076 – 720.338
Others 35,621,54 2,370,7 23,382,9 12,206,991 4
4,577,83 12,079,0 986.042 37,115,208
Total Assets 6
1,239,266, 27
29,711, 13 1,061,130,
347,720, 3
77,653,2 87
140,290, 2,286,599 245,593,48
911 354 354 930 03 864 7
Borrowings 58,910,00 – 10,694,7 90,718,570 3,330,12 20,596,7 – 327.096
4 73 4 73
Deposits and other accounts 1,147,251, 21,263, 65,961,3 – 55,009,1 99,253,1 – –
Net inter segment borrowing 222– 015
4,816,8 90 969,573,59
252,358, 74
13,301,1 60
10,727,7 1,599,112 –
Others 33,105,68 53
3,631,4 835
18,705,3 0
838.770 45
6,012,76 72
9,713,15 687.487 52,275,008
Total liabilities 5
1,239,266, 86
29,711, 56 1,061,130,
347,720, 0
77,653,2 9
140,290, 2,286,599 52,602,104
Equity 911 354 354 930 03 864 – 192,991,38
– – – – – – 3
Total Equity & liabilities 1,239,266, 29,711, 347,720,354 77,653,2 140,290, 2,286,599 245,593,487
911 354 1,061,130,930 03 864 3,143,653,702
Contingencies & Commitments 55,974,59 – 288,001,956 20,930,1 29,021,1 – 26,379,292
7 320,068,131 95 32 740,375,303
g Banking Banking Management
68,378,001
–
21,598,110
89,976,111
42,173,490
42,173,490
(5,472,779)
53,275,400
198,476,79
8
1,062,568,
511–
40,617,110
679,477,26
6,911,3866
134,070,40
8
2,122,121,
479
282,898,88
2
1,534,586,
671–
127,067,26
6
1,944,552,
819
177,568,66
0
2,122,121,
479
643,516,38
2
g Banking Banking Management
75,843,43
– 75,843,439
9
– – –
19,841,60 – 19,841,605
95,685,045 – 95,685,044
39,036,714 – 39,036,712
39,036,712 – 39,036,712
7,330,0442 – 7,330,044
49,318,28 – 49,318,288
8
161,064,5 – 161,064,562
62
1,036,217 – 1,036,217,535
,535 (1,252,377,307) –
1,252,377
17,968,24 – 17,968,243
,307
540,908,53 – 540,908,541
41
6,777,167 – 6,777,167
128,340,3 – 128,340,347
47 (1,252,377,
3,143,653 1,891,276,395
,702 307)
184,577,3 – 184,577,340
40
1,388,737 – 1,388,737,961
,961 (1,252,377,
1,252,377 –
,307
124,969,7 307)
– 124,969,711
11 (1,252,377, 1,698,285,012
2,950,662
,319 307) 192,991,383
192,991,3 –
245,593,487 (1,252,377,307) 1,891,276,395
83
3,143,653,702
26,379,292 – 740,375,303
740,375,303
42.2 Segment details with respect to geographical locations
GEOGRAPHICAL SEGMENT ANALYSIS
2021
Pakistan South Asia Middle East Eurasia Sub-total Eliminations Total
(Rupees in '000)
Profit & Loss
Net mark-up/return/profit Inter segment 581,662
66,984,558 679,587 –
(29,609 132,194 68,378,001 68,378,001
revenue - net 111,365 (81,756) –
Non mark-up / return / interest income ) – 19,372 – 21,598,110 – 21,598,110
20,731,783 215,132 –
631,823
Total Income 87,827,706 812,963 1,183,8 151,566 89,976,111 – 89,976,111
Segment direct expenses 41,007,928 564,433 76 75,242 42,173,490 – 42,173,490
Total expenses Provisions / (reversals) 41,007,928 564,433 525,887
525,887 75,242 42,173,490 – 42,173,490
Profit before tax
(5,714,883) 190,868 54,165 (2,929) (5,472,779 – (5,472,779)
Balance Sheet )
Cash and Bank balances Investments 52,534,661 57.662 603.824 79.253 53,275,400 – 53,275,400
Net inter segment lendings Lendings to
financial institutions Advances - performing 175,044,611 3,174,556 20,239,13 18,492 198,476,798 – 198,476,798
- non performing - net 1,048,922,121 8,242,882 9 – 1,062,568,51 – (12,542,107) 1,062,568,511
Others 12,542,107 – 42,821 5,403,508 – 1 – – 40,617,110
Total Assets 16,546,089 10,411,911 – – 1,300,580 12,542,107 – 679,477,266
Borrowings 659,899,392 85,244 24,028,20 – 85,542 40,617,110 – 6,911,386
Deposits and other accounts Net inter 6,826,142 1,035,061 0 679,477,266 – 134,070,408
segment borrowing Others 132,124,204 7,865,383 6,911,386
Total liabilities – 825,601 134,070,408
Equity
Total Equity & liabilities Contingencies & 2,051,904,666 22,992,475 58,361,83 1,404,614 2,134,663,58 (12,542,107) 2,122,121,479
Commitments 279,250,558 1,411,640 1 775,934 6 – 282,898,882
1,470,430,278 14,187,721 1,460,750 – 282,898,882 – (12,542,107) 1,534,586,671
– 125,192,946 6,246,495 49,968,67 – 90,904 1,534,586,67 – – 127,067,266
1,146,619 2 1
6,295,612 12,542,107
1,874,873,782 22,992,475 636,797
58,361,83 866.838 127,067,266
1,957,094,92 (12,542,107) 1,944,552,819
1 6
177,030,884 – – 537.776 177,568,660 – 177,568,660
2,051,904,666 22,992,475 58,361,83 1,404,614 2,134,663,58 (12,542,107) 2,122,121,479
1 6
641,010,298 604.010 1,902,074 – 643,516,382 – 643,516,382
2020
Pakistan South Asia Middle East Eurasia Sub-total Eliminations Total
(Rupees in '000)
Profit & Loss 74,278,382 862.868 584.128 118.061

Net mark-up/return/profit
Inter segment revenue - net 111.160 (95.930) (15.230) –
Non mark-up / return / interest income 19,024,163 265.900 543.982 7.560
Total Income 93,413,705 1,032,838 1,112,880 125.621
Segment direct expenses 37,664,604 650.469 656.321 65.318
Total expenses 37,664,604 650.469 656.321 65.318
Provisions / (reversals) 7,199,068 78.422 50.946 1.608
Profit before tax 48,550,033 303.947 405.613 58.695
Balance Sheet
Cash and Bank balances 140,214,571 1,556,335 19,289,01 4.640
Investments 1,021,646,465 10,519,130 6
4,051,940 –
Net inter segment lendings 12,319,043 – – –
Lendings to financial institutions 6,966,047 1,864,193 9,138,003 –
Advances - performing 518,887,766 12,402,421 8,863,250 755.104
- non performing - net 6,765,263 11.904 – –
Others 123,724,991 4,054,777 496.834 63.745
Total Assets 1,830,524,146 30,408,760 41,839,04 823.489
3
Borrowings 180,920,122 1,470,384 1,859,738 327.096
Deposits and other accounts 1,336,595,320 18,298,522 33,844,11 –
Net inter segment borrowing – 6,525,907 9
5,793,136 –
Others 120,442,311 4,113,947 342.050 71.403
Total liabilities 1,637,957,753 30,408,760 41,839,04 398.499
3
Equity 192,566,393 – – 424.990
Total Equity & liabilities 1,830,524,146 30,408,760 41,839,04 823.489
3
Contingencies & Commitments 719,445,109 17,479,001 3,451,193 –
r4a2n.s3actionTs between reportable segments are based on an appropriate transfer pricing mechanism
using agreed rates. Furthermore, segment assets and liabilities include inter segment balances. Costs which are not allocated to segmen
included in the Head office. Income taxes are managed by the respective entities of the group and are not allocated to operating segmen
42.4 No revenue from transactions with a single external customer or counterparty amounted to 10% or
more of the Group’s total revenue in 2021 or 2020.
21
68,378,001
– 21,598,110
89,976,111
42,173,490
42,173,490
(5,472,779)
53,275,400
198,476,798
1,062,568,511
– 40,617,110
679,477,266
6,911,386
134,070,408
2,122,121,479
282,898,882
1,534,586,671
– 127,067,266
1,944,552,819
177,568,660
2,122,121,479
643,516,382
75,843,439 – 75,843,439
– – –
19,841,605 – 19,841,605
95,685,044 – 95,685,044
39,036,712 – 39,036,712
39,036,712 – 39,036,712
7,330,044 – 7,330,044
49,318,288 – 49,318,288
161,064,562 – 161,064,562
1,036,217,535 – 1,036,217,535
12,319,043 (12,319,043) –
17,968,243 – 17,968,243
540,908,541 – 540,908,541
6,777,167 – 6,777,167
128,340,347 – 128,340,347
1,903,595,438 (12,319,043) 1,891,276,395
184,577,340 – 184,577,340
1,388,737,961 – 1,388,737,961
12,319,043 (12,319,043) –
124,969,711 – 124,969,711
1,710,604,055 (12,319,043) 1,698,285,012
192,991,383 – 192,991,383
1,903,595,438 (12,319,043) 1,891,276,395
740,375,303 – 740,375,303
sm
which are not allocated to segments are
e not allocated to operating segments.
10% or
43. RELATED PARTY TRANSACTIONS
The Group has related party relationship with associates, employee benefit plans, its directors and key management personnel and their close family mem
statements.
The Group enters into transactions with related parties in the ordinary course of business and on substantially the same terms as for comparable tr
retirement benefits and other benefit plans are made in accordance with the actuarial valuations / terms of the contribution plan. Remuneration to
Remuneration to Chief Executive, Directors and Executives is disclosed in note 40 to the consolidated financial statements.
Details of transactions with related parties during the year, other than those which have been disclosed elsewhere in these consolidated financial s
follows:
2021 2020
Key Key
management Other management Other Directors personnel and Associates relat
Parties shariah advisors
(Rupees in '000)
Investments
Opening balance – – 4,479,360 1,377,198

Equity method adjustments – – 803.922 –
Investment made during the year – – – 10,161,717
Investment disposed off during the year – – – (10,166,421)
Closing balance – – 5,283,282 1,372,494
Provision for diminution in value of investments – – – 5.000
Advances
Opening balance 1.042 275.118 356.898 1,262,995
Addition / exchange adjustment during the year 16.460 56.891 1,390,000 8,800,185
Repaid during the year (16.576) (63.324) (728.449) (5,379,508)
Transfer in / (out) (817) (28.979) – 711.350
Closing balance 109 239.706 1,018,449 5,395,022
Other Assets
Markup receivable – 2.684 17.154 46.093

Advances, deposits, advance rent and other prepayments – 506 182.467 207.681
Receivable from Pension Fund – – – 3,218,426
Closing balance – 3.190 199.621 3,472,200
el and their close family members. The detail of associates are stated in note 10.11 to the consolidated financial
me terms as for comparable transactions with person of similar standing. Contributions to and accruals in respect of staff
bution plan. Remuneration to the executives / officers is determined in accordance with the terms of their appointment.
ements.
these consolidated financial statements are as
2020
Key
nd Associates related Directors personnel and Associates related shariah advisors
riah advisors parties
'000)
– – 4,275,658 1,283,438
– – 203.702 –
– – – 10,609,883
– – – (10,516,123)
– – 4,479,360 1,377,198
– – – 5.000
1.722 223.338 – 1,101,457

18.202 95.758 356.898 3,282,404
(18.882) (40.170) – (3,365,263)
– (3.808) – 244.397
1.042 275.118 356.898 1,262,995
– 3.149 895 25.883

– 2.393 310.504 208.094
– – – 3,370,179
– 5.542 311.399 3,604,156
2021 2020
Key Key
Parties shariah advisors
(Rupees in '000)
Borrowings
Opening balance
Borrowings / exchange adjustment during the year Settled – – – 77,139
during the year – – – 25,981
– – – –
Closing balance – – – 103.120

Opening balance 302.130 743.120 5,172,087 6,061,671

Received during the year 2,874,441 4,962,387 49,364,225 121,100,115
Withdrawn during the year (2,468,887) (4,953,673) (50,352,159) (117,685,670)
Transfer in / (out) - net (7.137) (1.649) – 31.024
Closing balance 700.547 750.185 4,184,153 9,507,140
Other Liabilities
Markup payable 1.475 2.867 18.219 22.508
Accrued expenses and other payable 100.100 3.870 66.889 414.834
Payable to MCB Employee Security Services – – – 55.567
Closing balance 101.575 6.737 85.108 492.909
Contingencies and Commitments
Letter of Credit – – – 5,565,496
Bank guarantee – – 10.739 1,610,524
Closing balance – – 10.739 7,176,020
Income
Markup / return / interest earned 23 15.956 35.654 134.927

Fee and commission income – – 968.003 72.630
Dividend Income – – 192.500 127.978
Gain on forward foreign exchange contracts
matured during the year – – – 44.830
Net gain / (loss) on sale of securities (13) – (62) (837)
Gain on sale of fixed assets – 77 – –
Rent income and reimbursement of other expenses – – 12.662 60.713
Management fee and Advisory income – – – 658.536
Expense
Markup / return / interest expensed 22.885 45.334 142.524 718.756
2020
Key
nd Associates related Directors personnel and Associates related shariah advisors
riah advisors parties
000)
– – – 69,166
– – – 7,973
– - – –
– – – 77.139
602.381 194.366 4,013,859 5,124,551

669.282 3,851,770 44,628,206 99,003,416
(969.533) (3,257,022) (43,469,978) (97,417,931)
– (45.994) – (648.365)
302.130 743.120 5,172,087 6,061,671
50 3.159 42.549 16.004

– – 62.624 18.002
– – – 27.031
50 3.159 105.173 51.037
– – – 1,967,303
– – 10.512 892.358
– – 10.512 2,859,661
– 18.298 1.809 127.475

– – 1,177,371 51.520
– – 192.500 61.949
– – – 53.120
72 40 3.836 6.485
– 98 – 516
– 18 8.808 56.012
– – – 698.356
30.257 43.279 223.767 307.205

2021 2020
Key Key
parties shariah advisors
(Rupees in '000)
Other Operating expenses
Clearing expenses paid to NIFT – – –

Contribution to provident fund – – –
Rent expenses – – 55,945
Cash sorting expenses – – –
Stationery expenses – – –
Security guards expenses – – –
Remuneration to key executives, shariah advisors
and non-executive directors fee 279.819 630.132
Outsourcing service expenses – –
Donation during the year – –
E-dividend processing fee and CDC charges – –
Travelling Expenses – –
Hotel stay expenses – –
Repair & Maintenance Charges – –
Advertisement Expenses – –
Miscellaneous expenses and payments – 730
Selling & Marketing – –
Sharia Fee Paid – –
Insurance premium-net of refund – –
Insurance claim settled – –
Other Transactions
Proceeds from sale of fixed assets – 77

Purchase of fixed assets – –
Sale of government securities 903.221 33.431
Purchase of government securities 26.076 -
Forward exchange contracts matured during the year – –
Others – –
The Chairman has been provided with free use of the Group maintained car. The Chief Executive and certain executives are provided with free u
maintained cars and household equipment in accordance with the terms of their employment.
2020
Key
personnel and Associates related Directors personnel and Associates related shariah advisors
shariah advisors parties
(Rupees in '000)
– – 154.329 – – – 166.175
– – 491.210 – – – 455.012
– 55,945 69.605 – – 42,264 53.224
– – 99.821 - – – 114.845
– – 259.775 – – – 244.697
– – 405.507 – – – 381.267
– 161.458 177.166 612.330 – 160.475

196.446 – – – 275.517 –
– – – – – 95.000
– 6.209 – – – 4.757
– 51.534 – – – 38.507
– 146 – – – 3.410
– 2.148 – – – 1.989
– 3.132 – – – 7.308
– 3.252 – – – 3.243
– 259.866 – – – 287.916
– 8.857 – – – 2.458
495.818 96.452 – – 646.676 116.502
40.991 – – – 46.067 6.420
– 9 – 399 – –
18.782 38.253 – – 3.277 6.150
10,113,189 19,669,035 268.847 124.304 5,740,348 8,592,672
19,077,222 5,096,819 19.827 999 1,232,917 653.148
– 5,527,242 – – – 11,446,226
– 24.917 – – – –
and certain executives are provided with free use of the Group
2021 2020
(Rupees in '000)
44 CAPITAL ADEQUACY, LEVERAGE RATIO & LIQUIDITY REQUIREMENTS
44.1 Capital Adequacy
Minimum Capital Requirement (MCR):
Paid-up capital (net of losses)
Capital Adequacy Ratio (CAR):
Eligible Common Equity Tier 1 (CET 1) Capital Eligible Additional Tier 1 (ADT 1)
Capital
Total Eligible Tier 1 Capital Eligible Tier 2 Capital
Total Eligible Capital (Tier 1 + Tier 2)
Risk Weighted Assets (RWAs):
Credit Risk Market Risk Operational Risk
Total 11,850,600
Common Equity Tier 1 Capital Adequacy ratio Tier 1 Capital Adequacy Ratio 146,487,908
Total Capital Adequacy Ratio –
146,487,908
20,400,167
166,888,075
743,393,585
137,136,055
163,273,225
1,043,802,865
14.03%
14.03%
15.99%
The SBP through its BSD Circular No. 07 dated April 15, 2009 has prescribed the minimum paid up capital (net of losses) fo
locally incorporated banks of Rs. 10 billion. The paid up capital of the Bank (holding company) for the year ended Decembe
2021 stood at Rs. 11.851 billion (2020: Rs. 11.851 billion) and is in compliance with the SBP requirements. Further, under B
III instructions, banks are required to maintain minimum Capital Adequacy Ratio (CAR) of 11.50% as at reporting dates
(including a capital conservation buffer of 1.5% which has been revised downwards from 2.5% as per BPRD Circular No. 12
March 26, 2020), Common Equity Tier 1 (CET 1) ratio of 6.0% and Tier 1 ratio of 7.50% as at reporting dates. The Group is
compliant with prescribed ratios.
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
Group’s exposures based on eligible collateral under simple approach.
2021 2020
(Rupees in '000)
44.2 Leverage Ratio (LR):
Eligible Tier-1 Capital 146,487,908

Total Exposures 2,625,918,532
Leverage Ratio 5.58%
11,850,600
149,417,496
–
149,417,496
36,710,001
186,127,497
668,413,516
128,392,302
148,348,258
945,154,076
15.81%
15.81%
19.69%
d the minimum paid up capital (net of losses) for all

(holding company) for the year ended December 31,
nce with the SBP requirements. Further, under Basel
Ratio (CAR) of 11.50% as at reporting dates
nwards from 2.5% as per BPRD Circular No. 12 dated
atio of 7.50% as at reporting dates. The Group is fully
posures are measured using the Standardized

ch. Credit risk mitigants are also applied against the
149,417,496
2,323,456,613
6.43%
2021 2020
(Rupees in '000)
44.3 Liquidity Requirements
Liquidity Coverage Ratio (LCR): Total High Quality Liquid Assets Total Net
Cash Outflow
1,143,437,748
480,179,056
Liquidity Coverage Ratio 238.13%
Net Stable Funding Ratio (NSFR):
Total Available Stable Funding Total Required Stable Funding
1,312,628,842
862,352,888
Net Stable Funding Ratio 152.21%

The full disclosures on the Capital Adequacy, Leverage Ratio & Liquidity Requirements as per SBP instructions issued from time to
45 RISK MANAGEMENT
Risk is an inherent part of banking business activities. The risk management framework and governance structure at Group helps to mitigate and
counter any foreseeable risk in its various lines of business. Risk awareness forms an integral part of strategic and operational activities of risk manageme
Through its Global Risk Management Policy, Group sets the best course of action under uncertainty by identifying, prioritizing, mitigating and monitorin
issues, with the goal of enhancing shareholders’ value. Group’s risk management structure is based on the following five guiding principles:
• Establishing independent and properly resourced risk management function.
• Promoting open risk culture
Keeping in view dynamics of internal and external environment, the Group regularly reviews and updates policy manuals / frameworks and proce
in accordance with domestic regulatory environment and international standards.
The Group executes its risk strategy and undertakes controlled risk-taking activities within its risk management framework. The Board of Directo
its relevant committee, i.e. the Risk Management & Portfolio Review Committee (RM&PRC), the senior management and its relevant
committees, i.e. the Management Credit and Risk Committee (MC&RC), Asset Liability Committee (ALCO), etc., are responsible to ensure
formulation and implementation of comprehensive Risk Management Framework. This framework is based on prudent risk identification,
measurement, management and monitoring processes which are closely aligned with the activities of the bank. The framework combines core pol
procedures and process designs with broad oversight and is supported by an efficient monitoring mechanism across the bank to ensure that risks a
kept within an acceptable level.
The Group ensures that not only the relevant risks are identified but their implications are also considered and basis provided for managing and
measuring the risks. Through Internal Control units, the Group ensures that effective controls are in place to mitigate each of the identified risk.
Independent from business groups, Head of Risk Management reports functionally to the Risk Management & Portfolio Review Committee
(RM&PRC) and administratively to the President; the RM&PRC convenes regular meetings to evaluate Group’s risk and portfolio concentrations
Risk Management Group performs the following critical functions:
• Risk Management Policy Formulation
• Credit Risk Management
• Credit Review
• Credit Risk Control
• Market Risk Management
• Liquidity Risk Management
• Operational Risk Management
• IT Risk Management
Keeping in view the international best practices and SBP requirements, Board of Directors of the Group has approved a Risk Appetit
Statement, which takes into account quantitative and qualitative risk indicators, covering target ratios, credit, market, operational,
liquidity and business risks.
45.1 Credit Risk
Credit risk arises from Group’s dealings with individuals, corporate borrowers, financial institutions, sovereigns etc. The Group is expo
credit risk through its lending and investment activities. Credit risk makes up the largest part of the Group’s exposure and it stems from
Group’s both on and off-balance sheet activities. Purpose of Credit Risk Management function is to identify, measure, manage, monito
mitigate credit risk. To manage adverse outcomes in terms of unfavorable scenarios, multiple control factors in the lending struc
of the Group provide additional comfort and support. Such controls range from quality of eligible collateral, pre-disbursement safety
measures to post disbursement monitoring.
The Group has adopted Standardized Approach to measure Credit risk regulatory capital charge in compliance with Basel
requirements. The approach mainly takes into account the assessment of external credit rating agencies. In line with SBP
guidelines on Internal Credit Risk Rating Systems, the Group has developed rating systems and all its borrowers are internal
rated. In order to further enhance the credit risk analysis and the processes, Probability Default based Internal Credit Risk Ra
(ICRR) system based on the statistical modeling and validation in line with Basel principles. The revamped ICRR is currentl
focused on Corporate Commercial and Corporate Large customer categories. The ICRR Model for rating of SME Customers
also been revamped to achieve more accurate results and to improve the quality of credit decisions.
In order to manage Group’s credit risk, following policies and procedures are in place:
• Individuals who take or manage risks clearly understand them in order to protect the Group from avoidable risks;
• The approval of credit limits to counter parties are subject to pre-fact review;
• Extension in credit facility or material change to the credit facility is subject to credit review;
• Approval and review process is reviewed by RM&PRC and internal audit;
• Management periodically reviews the powers of credit approving and credit reviewing authorities.
Ongoing administration of the credit portfolio is an essential part of the credit process that supports and controls extension an
maintenance of credit. The Group’s Credit Risk Control is responsible for performing following activities:
• Credit disbursement authorization
• Collateral coverage and monitoring
• Compliance of loan covenants/ terms of approval
• Maintenance/ custody of collateral and security documentation
• Credit Risk Limit Controls
Credit Risk Monitoring is based on a comprehensive reporting framework. Continuous monitoring of the credit portfolio a
the risks attached thereto are carried out at different levels including businesses, Audit & Risk Assets Review, Credit R
Control, Credit Risk Management Division, etc.
To ensure a prudent distribution of asset portfolio, the Group manages its lending and investment activities within an approp
limits framework. Per party exposure limit is maintained in accordance with SBP Prudential Regulations.
The Group creates specific provision against Non-Performing Loans (NPLs) in accordance with the Prudential Regulations a
other directives issued by the State Bank of Pakistan (SBP) and charged to the profit and loss account. Provisions are held ag
identified as well as unidentified losses. Provisions against unidentified losses include general provision against consumer lo
and Small enterprise (SEs) made in accordance with the requirements of the Prudential Regulations issued by SBP and provi
based on historical loss experience on advances. General provisions pertaining to overseas advances are made in accordance
the requirements of the regulatory authorities of the
962,045,524
415,665,992
231.45%
1,212,910,470
715,405,667
169.54%
ts as per SBP instructions issued from time to time are available at https://www.mcb.com.pk/investor-relations/ capital-adequacy-statements.
ernance structure at Group helps to mitigate and

egic and operational activities of risk management.
entifying, prioritizing, mitigating and monitoring risk
following five guiding principles:
updates policy manuals / frameworks and procedures
management framework. The Board of Directors and

he senior management and its relevant
mittee (ALCO), etc., are responsible to ensure
k is based on prudent risk identification,
s of the bank. The framework combines core policies,
mechanism across the bank to ensure that risks are
nsidered and basis provided for managing and

in place to mitigate each of the identified risk.
anagement & Portfolio Review Committee

aluate Group’s risk and portfolio concentrations. The
ors of the Group has approved a Risk Appetite
overing target ratios, credit, market, operational,
al institutions, sovereigns etc. The Group is exposed to

t part of the Group’s exposure and it stems from
unction is to identify, measure, manage, monitor and
rios, multiple control factors in the lending structure
of eligible collateral, pre-disbursement safety
tory capital charge in compliance with Basel

rnal credit rating agencies. In line with SBP
rating systems and all its borrowers are internally
robability Default based Internal Credit Risk Rating
Basel principles. The revamped ICRR is currently
The ICRR Model for rating of SME Customers has
ity of credit decisions.
e in place:
protect the Group from avoidable risks;
iew;
ject to credit review;
t;
edit reviewing authorities.
t process that supports and controls extension and

rforming following activities:
ontinuous monitoring of the credit portfolio and

usinesses, Audit & Risk Assets Review, Credit Risk
ding and investment activities within an appropriate

SBP Prudential Regulations.
in accordance with the Prudential Regulations and

e profit and loss account. Provisions are held against
s include general provision against consumer loans
Prudential Regulations issued by SBP and provision
ng to overseas advances are made in accordance with
respective countries. Please refer note No. 11.4 for reconciliation of changes in specific and general
provisions.
The Risk Management function of the Group has further strengthened its credit review procedures in the light of COVID-19 and is reg
conducting assessments of the credit portfolio to identify borrowers most likely to be affected due to changes in the business and econo
environment.
Management of Non Performing Loans
The Group has a Special Assets Management (SAM) function, which is responsible for management of non performing loans. SAM
undertakes restructuring / rescheduling of problem loans, as well as litigation of both civil and criminal cases for collection of debt.
Stress Testing
Credit Risk stress testing is a regular exercise. Group’s credit exposures including funded and non- funded facilities are subjected to str
tests. This exercise is conducted on a quarterly basis through assigning shocks to all assets of the Group and assessing its resulting affe
capital adequacy inline with SBP requirements.
45.1.1 Lendings to financial institutions Credit risk by public / private sector

Gross lendings Non - performing lending Provision held
Note 2021 2020 2021 2020 2021 2020
(Rupees in '000)
Public/ Government Private

9 24,071,021 16,804,051 – – –
16,546,089 1,164,192 – – –
40,617,110 17,968,243 – – –
45.1.2 Investment in debt securities Credit risk by industry sector
Gross Investments Non - performing Investments Provision held
2021 2020 2021 2020 2021 2020
(Rupees in '000)
Chemical and
pharmaceuticals 1,750,000 1,750,000 – – –

conditioning supply 115.000 357.975 – – –
Financials including
government securities 1,040,825,407 998,156,946 118 118 118
Manufacture of cement 285.000 285.000 285.000 285.000 285.000
Manufacture of sugar 145.656 145.656 145.656 145.656 145.656
Manufacture of textiles 40.732 53.531 40.732 53.531 40.732
Others 6.153 81.666 6.153 6.154 6.153
1,043,167,948 1,000,830,774 477.659 490.459 477.659
Credit risk by public /
private sector
Public/ Government 1,032,448,925 989,024,844 – – –
Private 10,719,023 11,805,930 477.659 490.459 477.659
1,043,167,948 1,000,830,774 477.659 490.459 477.659
eral
es in the light of COVID-19 and is regularly

ue to changes in the business and economic
ment of non performing loans. SAM

riminal cases for collection of debt.
on- funded facilities are subjected to stress

e Group and assessing its resulting affect on
–
–
118
285.000
145.656
53.531
6.154
490.459
–
490.459
490.459
45.1.3 Advances
Gross Advances Non - performing Advances Provision held Note 2021 2020
2021 2020 2021 2020
(Rupees in '000)
Agriculture, forestry and fishing 7,102,391 6,212,703 575.837 1,001,746 358.691
Construction 16,806,556 20,255,633 393.250 289.791 296.478

conditioning supply 35,453,270 40,921,064 376.717 376.717 376.717
Electronics and electrical
appliances 9,509,640 6,135,405 92.104 102.262 92.104
Financials 32,779,500 17,004,242 301.280 462.665 301.280
Footwear and Leather
garments 5,617,274 3,972,108 163.781 170.131 163.781
Human health and social
work activities 548.329 922.333 45.081 45.596 45.081
Individuals 59,793,229 49,897,371 3,862,897 4,371,180 3,736,472
Manufacture of basic
metals and metal products 22,777,758 18,604,646 3,980,254 3,028,467 3,881,891
Manufacture of cement 20,336,468 12,103,828 392.862 392.862 392.862
pharmaceutical products 61,821,940 44,424,431 232.324 275.980 232.324
Manufacture of coke and
refined petroleum products 4,431,606 5,582,529 855.984 412.061 855.984
Manufacture of food &
beverages products 57,548,236 46,620,208 3,304,245 3,432,991 2,851,306
Manufacture of machinery,
equipment and transport
Equipment 7,573,933 2,182,220 373.053 433.943 373.053
Manufacture of rubber and
plastics products 6,798,847 4,562,138 606.722 665.778 606.722
Manufacture of sugar 43,226,078 38,895,908 4,419,576 4,658,087 4,419,576
Manufacture of textiles 123,677,939 86,056,461 12,733,639 13,475,285 12,497,961
Mining and quarrying 4,359,943 5,033,270 3.714 5.019 3.714
Manufacturing of Pulp,
Paper, Paperboard 7,810,334 3,851,182 174.634 179.539 174.634
Ship Breaking 5,010,446 6,707,314 3,988,794 4,348,014 3,988,794
Services 18,742,855 15,202,429 435.104 480.993 418.032
Telecommunications 23,855,551 18,287,167 42.798 42.798 42.798
Transportation and storage 102,353,603 83,652,075 287.994 75.901 165.970
Wholesale and retail traders 46,655,658 54,747,657 13,042,336 12,522,417 7,500,978
Others 7,849,457 6,531,453 507.595 695.295 503.986
11 732,440,841 598,365,775 51,192,575 51,945,518 44,281,189
Credit risk by public /
private sector
Public/ Government 130,672,215 105,422,741 639.825 639.825 639.825
Private 601,768,626 492,943,034 50,552,750 51,305,693 43,641,364
11 732,440,841 598,365,775 51,192,575 51,945,518 44,281,189
n held Note 2021 2020
437.355
278.464
374.996
101.825
462.665
169.736
34.973
3,930,762
3,018,387
392.862
273.047
411.445
3,058,910
396.551
662.506
4,655,219
13,322,828
5.019
150.661
4,348,014
465.504
42.798
66.253
7,472,473
635.098
45,168,351
639.825
44,528,526
45,168,351
2021 2020
45.1.4 Contingencies and Commitments

Agriculture, forestry and fishing 3,164,773
Construction 20,086,561
Electricity, gas, steam and air conditioning supply 21,056,984
Electronics and electrical appliances 7,833,104
Financials 293,031,681
Footwear and Leather garments 2,177,403
Human health and social work activities 336.876
Individuals 2,457,649
Manufacture of basic metals and metal products 10,547,856
Manufacture of cement 16,164,335
pharmaceutical products 26,655,833
Manufacture of coke and refined petroleum products 1,671,507
Manufacture of food & beverages products 24,248,574
Manufacture of machinery, equipment and
transport Equipment 14,893,316
Manufacture of rubber and plastics products 5,144,805
Manufacture of sugar 15,340,817
Manufacture of textiles 40,773,357
Mining and quarrying 887.679
Manufacturing of Pulp, Paper, Paperboard 4,531,008
Ship Breaking 1,738,857
Services 63,792,489
Telecommunications 19,642,288
Transportation and storage 8,840,716
Wholesale and retail traders 13,599,970
Others 24,897,944
24 643,516,382
Public/ Government 168,313,358
Private 475,203,024
24 643,516,382
45.1.5 Concentration of Advances
The Group top 10 exposures on the basis of total (funded and non-funded exposures) aggregated to Rs 250,579.571 million (2020: Rs. 235,823.259 millio
as following:
2021 2020
(Rupees in '000)
Funded 95,079,790
Non Funded 155,499,781

Total Exposure 250,579,571
The sanctioned limits against these top 10 exposures aggregated to Rs 296,220.092 million (2020:
311,201.617 million)
There is no provision against these top 10 exposures.
000)
2,148,032
22,705,666
25,280,013
6,827,749
399,373,812
517.178
1,612,922
2,671,529
10,694,842
4,755,354
26,547,957
8,329,298
20,251,341
8,946,430
4,968,143
4,623,950
37,630,523
144.328
1,616,529
556.614
58,522,756
17,006,854
10,648,735
26,096,091
37,898,657
740,375,303
229,256,802
511,118,501
740,375,303
,579.571 million (2020: Rs. 235,823.259 million) are
75,373,723
160,449,536
235,823,259
lion (2020:
45.1.6 Advances - Province/Region-wise Disbursement & Utilization
2021
KPK AJK
Province / Region Punjab Sindh including Balochistan Islamabad including Gilgit
FATA Baltistan
(Rupees in '000)
Punjab 928,351,802 896,694,939 16,663,783 13,884,282 122.283 986.515

Sindh 505,710,326 20,487,514 458,318,052 8,359,802 18,544,958 –
KPK including FATA 6,121,397 82.634 – 6,014,315 – 19.854
Balochistan 2,471,781 – 16.353 – 2,452,820 2.608
Islamabad 50,076,588 4,297,925 1.250 1,349,234 – 44,428,179
AJK including
Gilgit-Baltistan 409.802 70.790 – – – 21.947
Total 1,493,141,696 921,633,802 474,999,438 29,607,633 21,120,061 45,459,103
2020
KPK AJK
Province / Region Punjab Sindh including Balochistan Islamabad including Gilgit
FATA Baltistan
(Rupees in '000)
731,022,299 683,463,985 39,386,981 6,212,721 337.894 1,620,718 –

555,378,201 12,974,461 495,054,217 6,776,970 40,570,866 1.687 –
4,893,018 192.363 – 4,692,336 – 8.319 –
1,728,874 – 10.145 – 1,718,729 – –
32,173,536 2,558,963 2.246 2,293,047 – 27,319,280 –
340.864 68.573 – – – 27.915 244.376
Punjab
Sindh
KPK including FATA
Balochistan Islamabad
AJK including Gilgit-
Baltistan
Total
699,258,34 19,975,07
1,325,536,792 5 534,453,589 4 42,627,489 28,977,919
45.2 Market Risk
Market Risk arises from changes in market rates such as Interest Rates, Foreign Exchange Rates, Equity Prices, credit spreads and/or
commodity prices as well as their correlations and volatilities resulting in a loss to earnings and capital. Group is exposed to market ris
primarily through its trading activities, which are centered in the Treasury and Foreign Exchange Group and the Capital Market Divisio
Market risk also arises from market-making, facilitation of client business and proprietary positions in equities, fixed income and intere
rate products and foreign exchange, which exposes group to interest rate risk, foreign exchange risk and equity price risk.
The Group’s Market Risk Management structure consists of Risk Management & Portfolio Review Committee (RM&PRC)
Board, Management Credit and Risk Committee, ALCO and independent Market Risk Management Division reporting direc
Group Head Risk Management. Market Risk function works in close partnership with the business segments to identify and
monitor market risks throughout the Group and to define market risk policies and procedures. Market Risk seeks to facilitate
efficient risk/return management decisions, reduce volatility in operating performance and provide transparency into the Gro
market risk profile for senior management, the Board of Directors and regulators. Market risk authority, including both appro
of market risk limits and approval of market risks is vested in the ALCO.
In line with regulatory requirements, Group has clearly defined, in its Global Risk Management policy, the positions which s
be subject to market risk. The definition covers the accounting classifications as well as positions booked by different busine
groups under “Available for Sale” category. The assets subject to trading book treatment are frequently, mostly on daily basi
valued and actively managed. The positions which does not fulfill the criteria of Trading book falls under the Banking Book
are treated as per SBP requirements.
abad including Gilgit
–
–
4.594
–
–
317.065
321.659
abad including Gilgit
28,977,919 244.376
Equity Prices, credit spreads and/or

capital. Group is exposed to market risk
e Group and the Capital Market Division.
ons in equities, fixed income and interest
isk and equity price risk.
folio Review Committee (RM&PRC) of the
Management Division reporting directly to
the business segments to identify and
edures. Market Risk seeks to facilitate
and provide transparency into the Group’s
ket risk authority, including both approval
nagement policy, the positions which shall

s positions booked by different business
ent are frequently, mostly on daily basis,
ng book falls under the Banking Book and
The Group measures and manages Market Risk by using different risk parameters with combinations of various limits. Board approved
Global Risk Management Policy provides guidelines for assuming controlled market risk, its monitoring and management. The approv
limits are compared with the numbers generated by the market risk management systems based on the trading activity and the outstand
positions.
Besides conventional methods, the Group also uses VaR (Value at Risk) technique for market risk assessment of positions assumed by
treasury and capital market groups. In-house based solutions are used for calculating mark to market value of positions and generating
(value at risk) and sensitivity numbers. Thresholds for different positions are established to compare the expected losses at a given
confidence level and over a specified time horizon.
A framework of stress testing, scenario analysis and reverse stress tests covering both banking and trading books as per SBP guidelines
also in place. The results of the stress tests are reviewed by senior management and also reported to the SBP.
The Group is also exposed to interest rate risk both in trading and banking books. Risk parameters along with the marked to market val
of government securities held by the Group’s treasury are generated on daily basis. The risk parameters include duration, PVBP, and V
on individual security basis as well as on portfolio basis. These reports are presented to the senior management for review on a daily ba
45.2.1 Balance sheet split by trading and banking books

2021 2020
Banking Trading Total Banking Trading Total
book book book book
(Rupees in '000)
treasury banks 175,922,469 – 175,922,469 132,053,041 –

Balances with other banks 22,554,329 – 22,554,329 29,011,521 –
Lendings to financial institutions 40,617,110 – 40,617,110 17,968,243 –
Investments 29,709,416 1,032,859,095 1,062,568,511 24,028,377 1,012,189,158
Advances 686,388,652 – 686,388,652 547,685,708 –
Fixed assets 62,351,545 – 62,351,545 63,679,312 –
Intangible assets 1,838,136 – 1,838,136 1,867,244 –
Other assets 69,880,727 – 69,880,727 62,793,791 –
1,089,262,38 1,032,859,095 2,122,121,479 879,087,237 1,012,189,158
4
45.2.2 Foreign Exchange Risk
Foreign exchange risk exposes the Group to changes in the values of current holdings and future cash flows denominated in currencies other than
home currency due to the exchange rate fluctuation and volatility. The types of instruments exposed to this risk include investments in foreign
branches, foreign currency-denominated loans, foreign currency-denominated deposits, future cash flows in foreign currencies arising from
foreign exchange transactions, etc.
The core objective of foreign exchange risk management is to ensure the foreign exchange exposure of the Group remain within define
appetite and insulate Group against undue losses that may arise due to volatile movements in foreign exchange rates or interest rates.
Limit structure to manage Foreign exchange risk including gap limits on different tenors in major currencies are in place to co
risk. Group’s net open position and Foreign Exchange Exposure Limit (FEEL) is monitored and reported on intra-day and day end basi
Foreign exchange risk parameters including VaR is generated and monitored on daily basis. Stress testing of foreign exchange portfolio
its reporting to senior management and RM&PRC of the Board is a regular feature.
ations of various limits. Board approved
onitoring and management. The approved
on the trading activity and the outstanding
isk assessment of positions assumed by its

arket value of positions and generating VaR
mpare the expected losses at a given
and trading books as per SBP guidelines is

d to the SBP.
ers along with the marked to market values

ameters include duration, PVBP, and VaR
or management for review on a daily basis.
132,053,041
29,011,521
17,968,243
1,036,217,535
547,685,708
63,679,312
1,867,244
62,793,791
1,891,276,395
ws denominated in currencies other than

s risk include investments in foreign
ows in foreign currencies arising from
osure of the Group remain within defined risk

reign exchange rates or interest rates.
s in major currencies are in place to control

d reported on intra-day and day end basis.
ess testing of foreign exchange portfolio and
2021 2020
Foreign Foreign Off- Net Foreign Foreign Off-balance Net
currency currency balance
sheet foreign
currency currency currency sheet foreign
currency
assets liabilities items exposure assets liabilities items exposure
(Rupees in '000)
United States Dollar 37,366,203 59,553,342 14,729,917 (7,457,222) 49,879,275 58,098,426 8,304,216
Sri Lankan Rupees 676.927 – – 676.927 144.228 – –

Arab Emirates Dirham 197.995 97.575 – 100.420 – 248.645 39.598
Euro 3,658,013 7,827,669 4,160,827 (8.829) 2,846,513 7,017,270 4,194,638
Great Britain Pound Sterling 4,645,917 7,451,659 2,716,087 (89.655) 2,780,633 6,826,427 4,016,794
Japanese Yen – 829.527 885.473 55.946 34.647 160 22.007
Other currencies 1,468,902 271.732 (802.434) 394.736 384.723 – 47.086
48,013,957 76,031,504 21,689,870 (6,327,677) 56,070,019 72,190,928 16,624,339
2021 2020
Impact of 1% change in foreign exchange rates on
- Profit and loss account (63.277) – 5.034 –

- Other comprehensive income 117.543 – 106.202 –
45.2.3 Equity position Risk
Group’s proprietary positions in the equity instruments exposes it to the equity price risk in its trading and banking books. Equity price
risk is managed by applying trading limit, scrip-wise and portfolio wise nominal limits. VaR analysis and stress testing of the equity
portfolio are also performed and reported to senior management on a daily basis. The stress test for equity price risk assesses the impac
of the fall in the stock market index using certain assumptions. In addition to this stress testing, historical scenario analysis on equities
also performed periodically as advised by the State Bank of Pakistan through Guideline on Stress Testing.
2021 2020
Impact of 5% change in equity prices on
- Profit and loss account – 7.396 – 63.472

- Other comprehensive income – 1,051,784 – 962.069
4ie5ld.2/.4InteYrest Rate Risk in the Banking Book (IRRBB)-Basel II Specific
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 yi
curves. Interest rate risk is inherent in many of the Group’s businesses and arises from mismatches between the contractual maturities or the repricing of
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 maturit
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 whe
required.
The increase / (decrease) in earnings due to change in the interest rate is as follows:
2021 2020
Impact of 1% increase in interest rates on
- Profit and loss account (3,592,767) 85.568 (3,870,506) 5,305,338

- Other comprehensive income – (7,457,483) – (7,497,582)
The Group has classified Available for Sale investments as Trading in Basel-II.
0
in '000)
85.065
144.228
(209.047)
23.881
(29.000)
56.494
431.809
503.430
0)
–
–
ding and banking books. Equity price

ysis and stress testing of the equity
r equity price risk assesses the impact
storical scenario analysis on equities is
Testing.
0)
63.472
962.069
c
, including changes in the shape of yield
actual maturities or the repricing of on
n the re-pricing or contractual maturities
g and taking appropriate actions where
ws:
0)
5,305,338
(7,497,582)
.
45.2.5 Mismatch of Interest Rate Sensitive Assets and Liabilities
2021
yield / Over 1 Over 3 Over 6 Over 1 Over 2

interest Upto 1
Tota l to 3 to 6 months to 1 to 2 to 3 to 5 to 10 Above
rate month months months year years years years years 10 years
(Rupees in '000)
On-balance sheet financial instruments Assets
Cash and balances with treasury banks – 0.11% 175,922,469 7,033,445 – 1,939,826 – 352,182 – 699,120 –
Balances with other banks 2.39% 22,554,329 7,474,847 – – – 4,363,410 –
Lending to financial institutions Investments 8.30% 40,617,110 40,617,110 196,360,036 147,271,132 7,897,474 – 69,431,247
Advances 7.22% 1,062,568,5 457,297,886 78,779,962 8,794,026 – 2,245,303
Other assets 11 540,580,285 – – –
670,501,571 –
61,062,082
2,033,226,0 1,053,003,5 277,079,824 156,417,340 12,960,004 71,676,550

72 73
Liabilities
Bills payable Borrowings 5.02% 26,486,445 – – 79,769,610 – 54,771,536 – 4,644,742 – 6,121,131
Deposits and other accounts Other liabilities 3.42% 282,898,882 94,855,244 27,229,903 19,657,886 27,529,119 211,101
1,534,586,6 856,699,017 – – – –
71 –
76,433,291
1,920,405,2 951,554,261 106,999,513 74,429,422 32,173,861 6,332,232
89
On-balance sheet gap 112,820,783 101,449,312 170,080,311 81,987,918 (19,213,857) 65,344,318
Off-balance sheet financial instruments
FX options purchase 1,432,779 591,814 741,535 99,430 – –
Forward purchase of Government securities 5,098,200 5,098,200 – – 72,281 – 165,214 –
Cross Currency Swaps purchase 784,611 – – 31,472,430 22,348,898 14,019,626 –
Foreign exchange contracts purchase 120,320,899 52,479,945 –
127,636,489 58,169,959 32,213,965 22,520,609 14,184,840 –
FX options sale 1,432,779 591,814 741,535 99,430 – –

Forward sale of Government securities Cross – 784,611 – – – 72,281 – 165,214 –
Currency Swaps sale 98,557,472 – – 34,190,934 21,804,433 15,319,546 –
Foreign exchange contracts sale 27,242,559 –
100,774,862 27,834,373 34,932,469 21,976,144 15,484,760 –
Off-balance sheet gap 26,861,627 30,335,586 (2,718,504) 544.465 (1,299,920) –

Total Yield/Interest Risk Sensitivity Gap 131,784,898 167,361,807 82,532,383 (20,513,777) 65,344,318
Cumulative Yield/Interest Risk Sensitivity Gap 131,784,898 299,146,705 381,679,088 361,165,311 426,509,629
Sensitive Assets and Liabilities
2021
risk Non-interest
Over 6 Over 1 Over 2 Over 3 Over 5 bearing
financial
instruments
000)
– – – – – 168,889,024
– – – – – 12,088,354
– 69,431,247 – 54,078,471 – 37,596,845 – 68,078,851 – – 28,090,633
2,245,303 4,861,606 1,673,527 2,463,637 – 8,648,373 14,557,378
– – – – – 61,062,082
71,676,550 58,940,077 39,270,372 70,542,488 8,648,373 284,687,471
– 6,121,131 – 2,888,685 – 5,656,568 – 34,191,366 – 26,486,445

211,101 1,495,106 700,706 212,000 – –
– – – – – 600,851,833
– 76,433,291
6,332,232 4,383,791 6,357,274 34,403,366 – 703,771,569
65,344,318 54,556,286 32,913,098 36,139,122 8,648,373 (419,084,09

8)
– – – – – –
– – 547,116 – – – –
– – – – – –
– – – – –
– 547.116 – – – –
– – – – – –
– – 547,116 – – – –
– – – – – –
– – – – –
– 547.116 – – – –
– – – – – –
65,344,318 54,556,286 32,913,098 36,139,122 8,648,373
426,509,629 481,065,915 513,979,013 550,118,135 558,766,508
2020
yield / Upto 1 Over 1 Over 3 Over 6 Over 1 Over 2
interest rate Total to 3 months

month
(Rupees in '000)
On-balance sheet financial instruments
Assets
Cash and balances with treasury banks – 132,053,041 6,810,656 –
Balances with other banks 0.21% 29,011,521 2,557,720 799.172
Lending to financial institutions 7.27% 17,968,243 17,968,243 –
Investments 10.77% 1,036,217,53 183,723,956 426,084,702
Advances 9.34% 530,862,7385 432,796,935 55,725,610
Other assets 52,518,097 – –
1,798,631,17 643,857,510 482,609,484
Liabilities 5
Bills payable 26,451,513 – –

Borrowings 5.30% 184,577,340 126,736,400 19,225,222
Deposits and other accounts 4.50% 1,388,737,96 796,398,749 21,243,238
Other liabilities 68,843,3361 – –
1,668,610,15 923,135,149 40,468,460
0
On-balance sheet gap 130,021,025 (279,277,639) 442,141,024
Off-balance sheet financial instruments
FX options purchase 182.800 122.370 60.430
Outright purchase of Government Securities 11,089,775 11,089,775 –
Cross currency swaps - purchase 1,975,311 339.938 –
Interest Rate Swaps - purchase – – –
Foreign exchange contracts purchase 172,137,589 69,994,741 67,331,082
185,385,475 81,546,824 67,391,512
FX options sale 182.800 122.370 60.430
Forward sale of Government securities – – –
Cross Currency Swaps - sale 2,130,472 340.109 –
Foreign exchange contracts sale 155,508,653 58,735,248 59,516,527
157,821,925 59,197,727 59,576,957
Off-balance sheet gap 27,563,550 22,349,097 7,814,555
Total Yield/Interest Risk Sensitivity Gap (256,928,542) 449,955,579
Cumulative Yield/Interest Risk Sensitivity Gap (256,928,542) 193,027,037
2020
Yield/ Interest risk Non-interest
Over 3 Over 6 Over 1 Over 2 Over 3 Over 5 bearing
to 6 months months to 1 to 2 years to 3 years to 5 years to 10 years Above 10 financial

year years instruments
(Rupees in '000)
– – – – – – – 125,242,385
– – – – – – – 25,654,629
– – – – – – – –
170,130,910 62,818,947 24,457,188 41,949,392 30,794,310 71,118,956 – 25,139,174
5,822,045 12,758,741 3,619,904 1,742,088 4,803,725 1,859,527 6,139,018 5,595,145
– – – – – – – 52,518,097
175,952,955 75,577,688 28,077,092 43,691,480 35,598,035 72,978,483 6,139,018 234,149,430
– – – – – – – 26,451,513
5,798,255 1,899,960 8,816,080 3,763,698 4,831,690 13,506,035 – –
13,630,588 30,543,903 1,998,833 115.810 1,689,628 212.000 – 522,905,212
– – – – – – – 68,843,336
19,428,843 32,443,863 10,814,913 3,879,508 6,521,318 13,718,035 – 618,200,061
156,524,112 43,133,825 17,262,179 39,811,972 29,076,717 59,260,448 6,139,018 (384,050,63

1)
– – – – – – – –
– – – – – – – –
210.505 87.318 547.272 – 790.278 – – –
– – – – – – – –
26,239,931 8,571,835 – – – – – –
26,450,436 8,659,153 547.272 – 790.278 – – –
– – – – – – – –
– – – – – – – –
210.505 242.308 547.272 – 790.278 – – –
23,227,903 14,028,975 – – – – – –
23,438,408 14,271,283 547.272 – 790.278 – – –
3,012,028 (5,612,130) – – – – – –
159,536,140 37,521,695 17,262,179 39,811,972 29,076,717 59,260,448 6,139,018
352,563,177 390,084,872 407,347,051 447,159,023 476,235,740 535,496,188 541,635,206
2021 2020 2021
(Rupees in '000) (Rupee
Reconciliation to total assets Balance as per balance sheet Less:
Non financial assets
Islamic financing and
2,122,121,479
related assets 15,887,081

Fixed assets Intangible assets Other assets 62,351,545
1,838,136
8,818,645
88,895,407
Total financial assets 2,033,226,072
45.3 Operational Risk

Operational risk is the risk of loss resulting from inadequate or failed internal processes, people, and systems or from external events. This definit
The Group operational risk management framework, as laid down in the Global Risk Management Policy, duly approved by BOD, is f
evolve in the light of organizational learning and the future needs of the Group. Operational loss events are reviewed and appropriate c
procedures with respect to design and operative effectiveness.
Operational Risk Management helps the Group understand risks and improve mitigating controls so as to minimize operational risks th
strengthen its risk function, policies and procedures to facilitate its operations and improve quality of assets to safeguard interest of dep
45.3.1 Operational Risk-Disclosures Basel II Specific

Currently, the Group is reporting operational risk capital charge under Basic Indicator Approach (BIA). The Group took a number of initiative wi
events database and Risk & Control Self Assessments (ROSA) to manage its operational risk effectively.
In accordance with the Operational Risk Management (OR) regulations, policy and framework, a database covering operational risk ev
features and a better workflow management. This new software has further augmented group’s capacity to capture and report operation
management reports. Periodical updates on Operational Risk events are presented to senior management and the Risk Management and
Notes To The Consolidated Financial Statements
45.4 Liquidity Risk
Liquidity represents the ability to fund assets and meet obligations as they become due. The Group understands that liquidity does not come for free,
and surplus liquidity has an opportunity cost which needs to be recognized. Liquidity risk is a risk of not being able to obtain funds at a reasonable
price within a reasonable time period to meet obligations as they become due. Liquidity is essential to the ability to operate financial services
businesses and, therefore, the ability to maintain surplus levels of liquidity through economic cycles is crucial. Particularly during periods of adverse
conditions, liquidity management is among the most important activities that the Group conducts during both normal and stress periods. Group
recognizes that liquidity risk can arise from the Group’s activities and can be grouped into three categories:
- Inflows/Outflows from on-balance sheet items (other than marketable securities and wholesale borrowings) and off-balance sheet items;
- Marketability of trading securities; and
- Capacity to borrow from the wholesale markets for funding as well as trading activities.
Liquidity Management
The Asset Liability Committee of the Group has the responsibility for the formulation of overall strategy and oversight of the Asset Liability
Management function. Board has approved a comprehensive Liquidity Risk Policy (part of Risk Management Policy), which stipulates policies
regarding maintenance of various ratios, funding preferences, and evaluation of Groups’ liquidity under normal and stress scenarios. A framework to
assess the maturity profile of non-contractual assets and liabilities is in place to supplement the liquidity management. Group’s comprehensive
liquidity management framework assists it to closely watch the liquidity position through monitoring of early warning indicators and stress testing, to
ensure effective and timely decision making.
Group liquidity risk management framework is designed to identify measure and manage in a timely manner the liquidity risk position of the
Group. The underlying policies and procedures include: Global Risk Management policy, Global Treasury Policy, Investment policy,
Contingency Funding Plan, Liquidity Strategy and Limit Structure which are reviewed and approved regularly by the senior management /Board
members. Moreover; the Group also prepares a ‘Contingency Funding Plan’ (CFP) to address liquidity issues in time of stress/crises situation
containing early warning indicators to pre empt unforeseen liquidity crises. Group conducts Liquidity Risk Analysis on regular basis as well as
Maturity of gaps are also reviewed in order to ensure diversification in terms of tenors. Group liquidity risk framework envisages to project the
Group’s funding position during temporary and long- term liquidity changes, including those caused by liability erosion and explicitly identifying
quantifying and ranking all sources of funding preferences, such as reducing assets, modifying or increasing liability structure; and using
other alternatives for controlling statement of financial position changes. Group performs regular liquidity stress tests as part of its liquidity
monitoring activities. The purpose of the liquidity stress tests is intended to ensure sufficient liquidity for the Group under both idiosyncratic and
systemic market stress conditions. Group liquidity risk management approach involves intraday liquidity management, managing funding sources and
evaluation of structural imbalances in balance sheet structure.
In view of the relaxation granted by SBP for deferral of principal and markup and for rescheduling
/ restructuring of loans there will be an impact on the maturity profile of the Group. The Asset and Liability Committee (ALCO) of the Group is
monitoring the liquidity position and the Group is confident that the liquidity buffer currently maintained is sufficient to cater to any adverse
movement in the cash flow maturity profile
Intraday liquidity management is about managing the daily payments and cash flows. Group has policies to ensure that sufficient cash is
maintained during the day to make payments through local payment system. The policy of the Group is to maintain adequate liquidity at all times,
in all geographical locations and for all currencies and hence to be in a position, in the normal course of business, to meet obligations, repay
depositors and fulfill commitments.
Managing funding sources, as per policy Group maintain a portfolio of marketable securities that can either be sold outright or sold through a
repurchase agreement to generate cash flows for meeting unexpected liquidity requirement. As a part of liquidity management Group maintains
borrowing relationships to ensure the continued access to diverse market of funding sources. Group’s sound credit rating together with excellent
market reputation has enabled Group to secure ample call lines with local and foreign banks. The level of liquidity reserves as per regulatory
requirements also mitigates risks. Group’s investment in marketable securities is much higher than the Statutory Liquidity requirements (SLR).
movement in the cash flow maturity profile
Intraday liquidity management is about managing the daily payments and cash flows. Group has policies to ensure that sufficient cash is
maintained during the day to make payments through local payment system. The policy of the Group is to maintain adequate liquidity at all times,
in all geographical locations and for all currencies and hence to be in a position, in the normal course of business, to meet obligations, repay
depositors and fulfill commitments.
Managing funding sources, as per policy Group maintain a portfolio of marketable securities that can either be sold outright or sold through a
repurchase agreement to generate cash flows for meeting unexpected liquidity requirement. As a part of liquidity management Group maintains
borrowing relationships to ensure the continued access to diverse market of funding sources. Group’s sound credit rating together with excellent
market reputation has enabled Group to secure ample call lines with local and foreign banks. The level of liquidity reserves as per regulatory
requirements also mitigates risks. Group’s investment in marketable securities is much higher than the Statutory Liquidity requirements (SLR).
2020 2021 2020
in '000) (Rupees in '000)
Reconciliation to total assets
1,891,276,395 Balance as per balance sheet
Less: Non financial liabilities
1,944,552,819 1,698,285,012
16,822,970 Other liabilities 22,568,748 22,183,822

63,679,312 Deferred tax liability 1,867,244 1,578,782 7,491,040
10,275,694
24,147,530 29,674,862
1,920,405,289 1,668,610,150
92,645,220 Total financial liabilities
1,798,631,175
r failed internal processes, people, and systems or from external events. This definition includes legal risks but excludes strategic and reputational risks.
k, as laid down in the Global Risk Management Policy, duly approved by BOD, is flexible enough to implement in stages and permits the overall risk management approac
e future needs of the Group. Operational loss events are reviewed and appropriate corrective actions taken on an ongoing basis, including measures to improve control
ectiveness.
erstand risks and improve mitigating controls so as to minimize operational risks that are inherent in almost all areas of the Group. Going forward, the Group will further
to facilitate its operations and improve quality of assets to safeguard interest of depositors.
ge under Basic Indicator Approach (BIA). The Group took a number of initiative with respect to operational risk management like using Key Risk Indicators (KRIS), Loss
) to manage its operational risk effectively.
ent (OR) regulations, policy and framework, a database covering operational risk events is being maintained using a state of the art software solution, which has enhanced
ew software has further augmented group’s capacity to capture and report operational risk events and Kris. The software is also capable of generating periodical regulatory
onal Risk events are presented to senior management and the Risk Management and Portfolio Review Committee of the Board.
al Statements
ey become due. The Group understands that liquidity does not come for free,
ed. Liquidity risk is a risk of not being able to obtain funds at a reasonable
e due. Liquidity is essential to the ability to operate financial services
ty through economic cycles is crucial. Particularly during periods of adverse
that the Group conducts during both normal and stress periods. Group
an be grouped into three categories:
le securities and wholesale borrowings) and off-balance sheet items;
as trading activities.
e formulation of overall strategy and oversight of the Asset Liability

ty Risk Policy (part of Risk Management Policy), which stipulates policies
ation of Groups’ liquidity under normal and stress scenarios. A framework to
lace to supplement the liquidity management. Group’s comprehensive
position through monitoring of early warning indicators and stress testing, to
sure and manage in a timely manner the liquidity risk position of the
k Management policy, Global Treasury Policy, Investment policy,
h are reviewed and approved regularly by the senior management /Board
lan’ (CFP) to address liquidity issues in time of stress/crises situation
es. Group conducts Liquidity Risk Analysis on regular basis as well as
erms of tenors. Group liquidity risk framework envisages to project the
nges, including those caused by liability erosion and explicitly identifying
reducing assets, modifying or increasing liability structure; and using
Group performs regular liquidity stress tests as part of its liquidity
d to ensure sufficient liquidity for the Group under both idiosyncratic and
roach involves intraday liquidity management, managing funding sources and
arkup and for rescheduling

the Group. The Asset and Liability Committee (ALCO) of the Group is
idity buffer currently maintained is sufficient to cater to any adverse
d cash flows. Group has policies to ensure that sufficient cash is

system. The policy of the Group is to maintain adequate liquidity at all times,
osition, in the normal course of business, to meet obligations, repay
marketable securities that can either be sold outright or sold through a

quidity requirement. As a part of liquidity management Group maintains
of funding sources. Group’s sound credit rating together with excellent
h local and foreign banks. The level of liquidity reserves as per regulatory
urities is much higher than the Statutory Liquidity requirements (SLR).
d cash flows. Group has policies to ensure that sufficient cash is
system. The policy of the Group is to maintain adequate liquidity at all times,
osition, in the normal course of business, to meet obligations, repay
marketable securities that can either be sold outright or sold through a

quidity requirement. As a part of liquidity management Group maintains
of funding sources. Group’s sound credit rating together with excellent
h local and foreign banks. The level of liquidity reserves as per regulatory
urities is much higher than the Statutory Liquidity requirements (SLR).
421
and reputational risks.
mits the overall risk management approach to

cluding measures to improve control
. Going forward, the Group will further
using Key Risk Indicators (KRIS), Loss
t software solution, which has enhanced

apable of generating periodical regulatory and
45.4.1 Maturities of Assets and Liabilities - based on contractual maturity of the assets and liabilities of the Group
2021
Upto 1 Over 1 to Over 7 to Over 14 days Over 1 or Over 2 to Over 3 to Over 6 to Over 9 Over 1 to Over 2 to
Total day 7 days 14 days to 1 month 2 months 3 months 6 months 9 months months 2 years 3 years
to 1 year
(Rupees in '000)
Assets
treasury banks 175,922,469 167,440,506 2,827,321 2,827,321 2,827,321 – – –

Balances with other banks 22,554,329 12,203,635 3,618,039 882.436 2,859,091 – 1,939,826 352.182
Lending to financial institutions 40,617,110 – 40,617,110 – – – – –
Investments 1,062,568,5 1,519,706 1,993,519 3,348,435 161,525,386 21,160,497 93,727,521 56,802,009
Advances 11
686,388,652 96,210,425 30,147,047 20,226,431 56,631,045 44,331,478 73,725,767 69,041,666
Fixed assets 62,351,545 9.705 58.222 67.926 286.894 418.521 419.268 1,233,252
Intangible assets 1,838,136 2.074 12.441 14.514 46.982 76.027 76.319 228.534
Other assets 69,880,727 739.446 2,285,047 6,698,898 8,652,768 14,406,813 10,544,541 2,702,396
2,122,121,4 278,125,497 81,558,746 34,065,961 232,829,487 80,393,336 180,433,242 130,360,039
79
Liabilities
Bills payable 26,486,445 882.881 5,297,289 6,180,171 14,126,104 – – –
Borrowings 282,898,882 17,870,450 75,178,410 1,134,679 671.705 17,150,248 62,619,362 54,771,536

Deposits and other accounts 1,534,586,6 1,404,457,66 6,812,357 5,880,323 17,554,855 14,442,113 23,935,882 26,672,382
Deferred tax liabilities-net 71
1,578,782 3
1.550 (16.873) (25.642) (196.125) (129.820) (170.225) (384.312)
Other liabilities 99,002,039 13,849,202 3,671,351 5,000,998 8,476,540 6,884,488 5,199,413 3,153,795
1,944,552,8 1,437,061,74 90,942,534 18,170,529 40,633,079 38,347,029 91,584,432 84,213,401
19 6
Net assets 177,568,660 (1,158,936,2 (9,383,788) 15,895,432 192,196,408 42,046,307 88,848,810 46,146,638
49)
Reserves 85,043,592
Surplus on revaluation
of assets - net 15,225,689
Minority interest 751.419
177,568,660
Over 2 to Over 3 to Over 5
3 years 5 years years
00)
– – – – – –
- 699.120 – – – –
– – – – – –
5,928,230 100,689,851 243,369,263 59,300,908 110,776,104 202,427,082
22,236,046 33,063,220 58,092,897 49,366,412 60,499,800 72,816,418
1,213,367 1,201,393 4,229,340 4,006,192 4,126,486 45,080,979
226.669 226.516 520.952 – 92.533 314.575
3,107,088 1,478,602 8,205,417 5,055,750 6,003,961 –
32,711,400 137,358,702 314,417,869 117,729,262 181,498,884 320,639,054
– – – – – –
564.632 4,080,110 6,121,131 2,888,685 5,656,568 34,191,366

17,275,468 14,874,339 255.433 1,507,536 706.320 212.000
(388.214) (379.989) (709.013) (222.864) 1,631,205 2,569,104
14,079,344 3,621,053 9,942,304 6,463,047 12,415,954 6,244,550
31,531,230 22,195,513 15,609,855 10,636,404 20,410,047 43,217,020
1,180,170 115,163,189 298,808,014 107,092,858 161,088,837 277,422,034

2020
Upto 1 Over 1 to Over 7 to Over 14 days Over 1 or
Total day 7 days 14 days to 1 month 2 months
(Rupees in '000)
Assets
132,053,04
1
29,011,521
17,968,243
1,036,217,5
35
547,685,70
8
63,679,312
1,867,244
62,793,791
132,053,04
1
23,026,781
2,692,982
2,115,960
71,415,264
9,138
1,979
519,422
– 1,888,376
15,275,261
744,830
18,829,281
54,832
11,878
2,287,085
– 1,249,151
–
91,856,505
7,175,588
63,971
13,857
7,867,650
– 2,048,182
–
72,413,931
23,201,609
273,734
44,088
6,658,755
–
–
–
159,537,88
7
30,523,564
501,067
87,266
10,076,645
– 799,031
–
179,728,31
2
34,544,271
398,581
72,153
10,344,951
–
–
–
114,920,20
5
59,677,666
1,195,045
216,545
2,393,673
–
–
–
60,920,079
39,860,068
1,193,172
216,582
913,569
–
–
– 6,328,360
38,419,706
1,188,330
216,530
400,930
–
–
–
29,707,053
58,572,922
4,288,513
464,642
2,260,624
–
–
–
75,507,721
48,296,903
4,258,016
45,265
7,954,884
–
–
–
46,183,005
69,731,805
5,135,853
159,143
11,115,603
–
–
–
196,253,68
7
47,437,061
45,119,060
317,316
–

Balances with other banks Lending to financial institutions Investments
Advances Fixed assets
Intangible assets
Other assets
Liabilities 1,891,276,395 231,834,567 39,091,543 108,226,722 104,640,299 200,726,429 225,887,299 178,403,134

Bills payable Borrowings 1,698,285,012 1,318,147,603 107,116,490 18,489,597 45,099,205 36,739,234 21,239,256 33,916,155
Deferred tax liabilities-net
Other liabilities
– 5,798,255
15,154,216
(594,756)
13,558,440
– 1,010,722
17,758,355
34,148
2,237,294
– 889,239
14,025,638
(481,104)
2,173,027
– 8,816,080
2,193,993
67,094
4,232,223
–
3,763,698
158,796
1,449,272
9,889,368
–
4,831,690
1,698,528
2,506,244
16,491,97
2
–
13,506,03
5
212,000
4,863,080
5,210,080
26,451,513
184,577,34
0
1,388,737,9
61
7,491,040
91,027,158
881,718
27,117,387
1,277,556,4
93
25,629
12,566,376
5,290,301
93,035,233
6,058,339
(10,026)
2,742,643
6,172,020
1,537,110
6,678,164
(22,787)
4,125,090
14,107,474
5,046,669
20,097,720
(118,603)
5,965,945
–
15,158,024
15,871,497
(19,697)
5,729,410
– 4,067,198
11,274,222
(207,454)
6,105,290
Net assets 192,991,383 (1,086,313,036) (68,024,947) 89,737,125 59,541,094 163,987,195 204,648,043 144,486,979 82,06
192,991,383
Over 2 to Over 3 to Over 6 to Over 9 Over 1 to Over 2 to Over 3 to Over 5
3 months 6 months 9 months months 2 years 3 years 5 years years
to 1 year
ees in '000)
726,429 225,887,299 178,403,134 103,103,470 46,553,856 95,293,754 136,062,789 132,325,409 289,127,124
739,234 21,239,256 33,916,155 21,040,519 16,606,800 15,309,390 15,261,134 25,528,434 23,791,195
5 204,648,043 144,486,979 82,062,951 29,947,056 79,984,364 120,801,655 106,796,975 265,335,929
Reserves 81,060,051
Surplus on revaluation
of assets - net 28,803,351
Minority interest 778,561
45.4.2 Maturities of assets and liabilities - based on expected maturities of the assets and liabilities of the Group
2021
Upto 1 Over 1 to Over 3 to Over 6 to Over 1 to Over 2 to Over 3 t
Total month 3 months 6 months months to 2 years 3 years 5
1 year
(Rupees in '000)
Assets
treasury banks 175,922,469 175,922,469 – – –

Balances with other banks 22,554,329 19,563,201 1,939,826 352.182 699.120
Lending to financial institutions 40,617,110 40,617,110 – – –
Investments 1,062,568,511 168,020,357 114,924,645 56,824,655 106,653,827
Advances 686,388,652 114,716,561 79,831,887 50,313,149 50,995,705
Fixed assets 62,351,545 422.746 837.790 1,233,252 2,414,760
Intangible assets 1,838,136 76.011 152.346 228.534 453.186
Other assets 69,880,727 18,376,157 24,334,042 2,702,396 4,585,693
2,122,121,479 537,714,612 222,020,536 111,654,168 165,802,291
Liabilities
Bills payable 26,486,445 26,486,445 – – –
Borrowings 282,898,882 94,855,244 79,769,610 54,771,536 4,644,742

Deposits and other accounts 1,534,586,671 109,209,223 98,254,512 119,632,972 41,959,926
Deferred tax liabilities 1,578,782 (237.090) (300.045) (384.312) (768.203)
Other liabilities 99,002,039 30,998,092 11,992,103 3,153,795 17,700,397
1,944,552,819 261,311,914 189,716,180 177,173,991 63,536,862
Net assets 177,568,660 276,402,698 32,304,356 (65,519,823) 102,265,429
Reserves 85,043,592
177,568,660
up
2021
ver 1 to Over 2 to Over 3 to Over 5 to Above
2 years 3 years 5 years 10 years 10 years
year
es in '000)
– – – – –
– – – – –
– – – – –
243,386,951 59,318,596 110,309,267 195,100,809 8,029,404
101,384,962 94,508,568 106,460,500 71,860,383 16,316,937
4,229,340 4,006,192 4,088,560 7,624,432 37,494,473
388.270 132.681 92.533 314.575 –
8,205,417 5,673,061 6,003,961 – –
357,594,940 163,639,098 226,954,821 274,900,199 61,840,814
– – – – –
6,121,131 2,888,685 5,656,568 34,191,366 –

345,407,820 346,659,923 345,858,708 118,347,993 9,255,594
(709.013) (222.864) 1,631,205 1,356,452 1,212,652
9,942,304 6,554,844 12,415,954 5,261,647 982.903
360,762,242 355,880,588 365,562,435 159,157,458 11,451,149
(3,167,302) (192,241,490) (138,607,614) 115,742,741 50,389,665

2020
Upto 1 Over 1 to Over 3 to Over 6 to Over 1 to
Total month 3 months 6 months months to 2 yea
1 year
(Rupees in '000)
Assets
treasury banks 132,053,041 132,053,041 – –
Balances with other banks 29,011,521 28,212,490 799.031 –

Lending to financial institutions 17,968,243 17,968,243 – –
Investments 1,036,217,535 166,114,420 339,389,280 114,979,116
Advances 547,685,708 76,970,968 45,417,484 33,943,819
Fixed assets 63,679,312 401.677 899.648 1,195,045
Intangible assets 1,867,244 71.802 159.419 216.545
Other assets 62,793,791 17,332,911 20,411,437 2,403,832
1,891,276,395 439,125,552 407,076,299 152,738,357
Liabilities
Bills payable 26,451,513 26,451,513 – –
Borrowings 184,577,340 126,736,400 19,225,222 5,798,255
Deposits and other accounts 1,388,737,961 91,320,307 60,203,123 59,578,918
Deferred tax liabilities 7,491,040 (124.406) (227.197) (595.067)
Other liabilities 91,027,158 25,400,055 11,830,725 13,562,414
1,698,285,012 269,783,869 91,031,873 78,344,520
Net assets 192,991,383 169,341,683 316,044,426 74,393,837
11,850,600
Share capital
Reserves 81,060,051
192,991,383
Liquidity Gap Reporting

When an asset or liability does not have any contractual maturity date, the period in which these are assumed to mature has been taken
behavioral study using regression analysis technique to ascertain the maturity of its non- contractual assets and liabilities. Core and non
behavioral study. Non Core part is placed among the short term maturity buckets i.e. up to 1 Year based on the model results, whereas
decision by the ALCO. Following percentages are used to distribute the core assets and liabilities among longer term buckets:
Over 1 to 2 Years
Over 2 to 3 Years
Over 3 to 5 Years
Over 5 to 10 Years
30% 30% 30% 10%
45.5 Derivative Risk
Most business clients have either interest rate exposures arising from debt financing or currency exposures arising out of commercial transactions
import and export of goods. Businesses face the risk of sudden movements in interest rates or foreign exchange rates that may adversely affect their
profitability. Group provides solutions to this problem through its derivatives desk in major types of derivative instruments i.e.; forwards, futures, swa
and options. As an Authorized Derivative Dealer (ADD), Group is an active participant in Derivative market and has flexibility in providing a broad ra
of derivatives products covering both hedging and market making to satisfy customers’ needs. As an ADD, the Group offers derivative products which ar
permitted under the Financial Derivative Business Regulations (FDBR) or as permitted by the State Bank of Pakistan. Before executing Derivativ
transactions, the Group ensures that the clients understand the risk and reward associated with the derivative being offered. Derivative transactions are
executed with appropriate clients only.
Risk management activities take place at the following different levels.

Strategic Level:
By senior management Assets and Liabilities Committee (ALCO), Management Credit and Risk Committee (MC&RC) and the
Board of Directors to institute a risk management framework and to ensure provision of all resources and support required for effective
management on Group-wide basis. The Board provides the overall limits/thresholds for derivatives business.
Macro Level:
By Treasury and FX Group and Risk Management Group, responsible for policy formulation, procedure development and implementat
monitoring and reporting.
Micro Level:
Treasury Derivatives and Structured Product Desk where risks are actually created and Treasury Operations for settlements of t
transactions.
Derivative Risk Management caters the following risks:-

Market Risk arises from changes in market rates such as Interest Rates, Foreign Exchange Rates, Equity Prices, credit spreads and/or
commodity prices as well as their correlations and volatilities resulting in a loss to earnings and capital. In line with SBP’s regulatory
guidelines, Group hedges back- to-back all option transactions with other financial institutions. Group minimizes the exchange rate risk
its Cross Currency Swap Portfolio by hedging the exposure in interbank market. Group also manages interest rate risk on its Interest Ra
Derivatives and Cross Currency Swaps through various sensitivity limits approved by ALCO. Marked to market positions and sensitivi
the derivatives transactions are monitored on regular basis. All individual deals are approved at the appropriate level of authority after
analyzing the risk and benefits associated with the deals.
Credit risk is a probable risk of loss resulting from customer’s inability to meet contractual obligation that may have adverse impact on
Group’s profitability. Group manages the risk by setting policies and limits for counterparty based on a pre-defined criteria linked with
financial health of the customer. The exposure of each counterparty is monitored by Risk Management Function of the Group on daily
Considering small Derivative portfolio, Group is not exposed to any liquidity risk. However; Group manages its liquidity risk through
Group’s liquidity risk framework which is defined in relevant Liquidity Risk Section.
Group has adequate system and controls for smooth execution of derivative transactions. Transactions are executed in line with well de
accounting and operational aspects to mitigate the operational risk. Policies and control functions are regularly reviewed on periodic ba
2020
Over 6 to Over 1 to Over 2 to Over 3 to Over 5 to Above
months months to 2 years 3 years 5 years 10 years 10 years
1 year
(Rupees in '000)
– – – – – –
– - - - – –
– – – – – –
67,384,316 29,832,802 75,633,470 46,243,587 189,391,593 7,248,951
64,487,430 86,858,208 78,919,201 96,374,067 54,063,767 10,650,764
2,381,501 4,288,513 4,258,016 5,084,949 8,481,036 36,688,927
433.112 509.907 - 159.143 43.190 274.126
1,314,500 2,260,624 7,954,884 11,115,603 – –
136,000,859 123,750,054 166,765,571 158,977,349 251,979,586 54,862,768
– – – – – –
1,899,960 8,816,080 3,763,698 4,831,690 13,506,035 –
57,889,894 333,580,267 331,545,069 333,084,802 121,535,581 –
(448.028) 66.771 1,448,949 2,483,113 3,097,007 1,789,898
4,410,321 4,232,223 9,889,368 16,491,972 4,748,747 461.333
63,752,147 346,695,341 346,647,084 356,891,577 142,887,370 2,251,231
72,248,712 (222,945,287) (179,881,513) (197,914,228) 109,092,216 52,611,537
sumed to mature has been taken as the expected date of maturity. Group regularly conducts an objective and systematic
sets and liabilities. Core and non-core parts of the non-contractual assets and liabilities are segregated through the
d on the model results, whereas core part is distributed among the longer terms buckets based on the discussion and
ng longer term buckets:
10%
g out of commercial transactions from
may adversely affect their
nts i.e.; forwards, futures, swaps
flexibility in providing a broad range
ers derivative products which are
tan. Before executing Derivative
d. Derivative transactions are
k Committee (MC&RC) and the

nd support required for effective risk
siness.
re development and implementation,
y Operations for settlements of the
ty Prices, credit spreads and/or

. In line with SBP’s regulatory
minimizes the exchange rate risk on
nterest rate risk on its Interest Rate
to market positions and sensitivity of
propriate level of authority after
hat may have adverse impact on

a pre-defined criteria linked with
Function of the Group on daily basis.
anages its liquidity risk through
are executed in line with well defined

egularly reviewed on periodic basis.
The Group uses a third party’s Super Derivative System which provides front end sales and structuring capabilities, end to en
valuation solutions, risk management systems, back end processing and provides analytical tools to measure various risk
exposures and carry out sensitivity analysis.
The goal of asset/liability management (ALM) is to properly manage the risk related to changes in interest rates, the mix of
balance sheet assets and liabilities, the holding of foreign currencies, and the use of derivatives. Due to thin liquidity in the
derivative market, interest rate derivatives are not actively used to manage/alter the interest rate risk profile of the Group.
46 EVENTS AFTER THE REPORTING DATE

The Board of Directors in its meeting held on February 10, 2022 has announced a final cash dividend in respect of the year ended December 31, 2
of Rs 5.00 per share (2020: Rs. 15.00 per share). These consolidated financial statements for the year ended December 31, 2021 do not include th
effect of these appropriations which will be accounted for subsequent to the year end.
47 GENERAL
Comparative information has been rearranged wherever necessary for better presentation of the consolidated financial statements. There have bee
significant reclassifications during the year.
Figures have been rounded off to the nearest thousand of rupees unless otherwise stated.
48 DATE OF AUTHORIZATION FOR ISSUE
These consolidated financial statements were authorized for issue by the Board of Directors of the Group in their meeting held on February 10, 2

s and structuring capabilities, end to end
ytical tools to measure various risk
o changes in interest rates, the mix of

rivatives. Due to thin liquidity in the
erest rate risk profile of the Group.
spect of the year ended December 31, 2021

d December 31, 2021 do not include the
ed financial statements. There have been no
e stated.
n their meeting held on February 10, 2022.
Shahzad Hussain
Director
Description Cost/ Accumu- Book value Sales pro-
revalued amount lated depreciation ceeds
Computers (Rupees '000)

Laptop 268 268 – 54
268 268 – 54
Mode of disposal Particulars of buyers Location
As per Bank's policy Kamran Zafar Muggo Lahore

AS AT DECEMBER 31, 2021
MCB Islamic bank ( the 'Bank') is operating 176 Islamic banking branches in Pakistan
(December 31, 2020: 187 branches).
2021 2020
ASSETS
Cash and balances with treasury banks 11,309,285

Balances with other banks 3,696,073
Due from financial institutions 1 1,650,000
Investments - net 2 33,475,816
Islamic financing and related assets - net 3 96,308,562
Fixed assets 4,932,122
Intangible assets 579.767
Deferred tax assets - net 1,006,958
Other assets - net 8,308,810
161,267,393
LIABILITIES
Bills payable 1,896,801

Due to financial institutions 4 16,472,906
Deposits and other accounts 5 122,747,778
Liabilities against assets subject to finance lease Sub-ordinated debts -
Deferred tax liabilities - net Other liabilities -
- 9,545,353
150,662,838
NET ASSETS 10,604,555
REPRESENTED BY

Reserves 88.193
Surplus on revaluation of assets - net of tax 248.364
Accumulated losses 7 (1,282,002)
10,604,555

in Pakistan
pees in '000)
9,872,197
4,996,602
828.790
27,617,997
84,896,191
5,548,894
639.428
874.878
5,895,909
141,170,886
2,470,821
20,596,773
99,253,161
-
-
- 8,122,359
130,443,114
10,727,772
11,550,000
68.107
473.316
(1,363,651)
10,727,772
Profit and Loss Account
The profit and loss account of the bank's branches for the year ended 176 (December
31, 2020: 187 branches).
2021 2020
Profit / return earned 9 9,202,716
Profit / return expensed 10 5,008,845

Net spread earned 4,193,871
OTHER INCOME
Fee and commission income 408.113

Dividend income 71.199
Foreign exchange income 113.571
(Loss) / gain on securities (593.936)
Other income 200.473
Total other income 199.420
Total income 4,393,291
OTHER EXPENSES
Operating expenses 4,753,602
Workers welfare fund 10.136
Other charges 51.623
Total other expenses 4,815,361
Loss before provisions (422.070)
Provisions and write offs - net Extra ordinary / unusual items (647,121)
–
PROFIT BEFORE TAXATION 225.051
Taxation 124.619
PROFIT AFTER TAXATION 100.432

6 (December
2020
9,616,051
5,280,989
4,335,062
331.002
47.703
209.888
14.274
161.322
764.189
5,099,251
4,680,482
9.830
590
4,690,902
408.349
15,270
–
393.079
184.763
208.316
2021 2020
1 DUE FROM FINANCIAL INSTITUTIONS
Secured
Bai Muajjal receivable - with State Bank of Pakistan 1.1 – 828.790
Unsecured
Musharaka arrangements 1,650,000 -
1,650,000 828.790
1.1 This represents Musharaka placements with various financial institutions carrying average profit rate
of 10.35% per annum (2020: Nil) and having maturity till January 04, 2022.
2021 2020
(Rupees in '000)
1.2 Particulars of due from financial institutions
- local currency
1,650,000 828.790
2 INVESTMENTS
2.1 Investments by segments:
2021 2020
Cost/ Provision for Surplus / Carrying Cost/ Provision for Surplus / Carrying amorti
cost diminution (deficit) value amortised cost diminution (deficit) value
(Rupees in '000)
Federal Government securities
GOP Ijarah Sukuks 30,637,273 – (105.708) 30,531,565 22,475,798 – (58.797)

WAPDA Sukuks – – – – 27.894 – (781)
Bai Mu’ajjal 1,540,891 – – 1,540,891 2,700,827 – –
Shares
Listed companies 639.792 262.194 (171) 377.427 1,815,977 1,039,436 292.987
Non Government securities
Listed 244.000 – 4.322 248.322 549.000 – 4.119
Un listed 770.000 – 7.611 777.611 840.000 – 10.409
Total Investments 33,831,956 262.194 (93.946) 33,475,816 28,409,496 1,039,436 247.937

2.2 There were no investment given as collateral as at December 31, 2021 (2020: Nil).
2021 2020
(Rupees in '000)
Opening balance 1,039,436 1,059,172
Charge for the year 50.072 36.975

Reversal on disposals (827.314) (56.711)
Closing balance 262.194 1,039,436
0)
828.790
-
828.790
profit rate
828.790
ision for Surplus / Carrying amortised

on (deficit) value
22,417,001
27.113
2,700,827
1,069,528
553.119
850.409
27,617,997
1,059,172
36.975
(56.711)
1,039,436
2021 2020
3 ISLAMIC FINANCING AND RELATED ASSETS - NET

Murabaha 3.1 13,674,189
Istisna 4,764,233
Salam 19.927
Ijarah 3.2 2,096,652
Running Musharaka 47,811,823
Diminishing Musharaka 26,817,780
Staff finance 1,310,558
Islamic financing and related assets - gross 96,495,162
Less: Provision against non-performing
Islamic financing and related assets
- Specific (124.718)
- General (61.882)
(186.600)
Islamic financing and related assets - net of provisions 96,308,562
3.1 Murabaha
- Murabaha financing 3.1.1 7,612,792
- Murabaha inventory 5,392,634
- Advances against Murabaha financing 654.078
- Murabaha financing under Islamic export
refinance scheme (IERS) –
- Advances against Murabaha financing under IERS –
- Murabaha inventory under SBP’s Islamic Refinance
Scheme for Payment of Wages and Salaries (IRSPWS) 14.685
13,674,189
3.1.1 Murabaha receivable - gross 3.1.1.1
8,031,953
Less: Deferred Murabaha income 3.1.1.3 419.161
Murabaha financing 7,612,792
3.1.1.1 Movement in Murabaha receivable during the year

Sales during the year 33,340,738
Adjusted during the year (30,540,870)
8,031,953
3.1.1.2 Murabaha sale price during the year 33,340,738
Murabaha purchase price during the year (32,207,026)

1,133,712
3.1.1.3 Deferred Murabaha income
Arising during the year 1,133,712
Recognised during the year (948.374)
419.161
3.1.1.4 Istisna
Istisna financing 1,139,556
Istisna inventory 534.487
Advances against Istisna financing 2,579,121
Istisna financing under IERS 56.572
Advances against Istisna financing under IERS 416.997
Advances against Istisna financing under SBP’s IRSPWS 37.500
4,764,233
000)
12,055,820
3,455,789
–
2,815,368
40,757,574
24,693,571
1,184,311
84,962,433
(25.395)
(40.847)
(66.242)
84,896,191
4,998,262
6,494,165
510.454
5.000
20.000
27.939
12,055,820
5,232,085
233.823
4,998,262
5,005,449
20,865,558
(20,638,922)
5,232,085
20,865,558
(19,838,369)
1,027,189
334.286
1,027,189
(1,127,652)
233.823
480.693
389.306
1,611,226
123.667
775.897
75.000
3,455,789
2021 2020
3.1.1.5 Running Musharaka
Running Musharaka financing 45,098,823 38,592,574

Running Musharaka financing under IERS 2,713,000 2,165,000
47,811,823 40,757,574
3.1.1.6 Diminishing Musharaka
Diminishing Musharaka financing 21,721,143 18,977,083
Advances against Diminishing Musharaka financing 1,770,095 2,153,276
Diminishing Musharaka financing under SBP’s IRSPWS 935.708 1,612,874
Advances against Diminishing Musharaka under SBP’s ILTFF 402.292 541.151
Advances against Diminishing Musharaka under SBP’s IRFCC – 27.518
Advances against Diminishing Musharaka under SBP’s ITERF 1,988,542 1,381,669
26,817,780 24,693,571
3.1.1.7 Staff finance
Staff vehicle finance under Diminishing Musharaka 296.527 245.136
Staff housing finance under Diminishing Musharaka 1,014,031 939.175
1,310,558 1,184,311
3.2 Ijarah financing and related assets
- Net book value of assets in Ijarah under IFAS 2 3.2.1 2,025,690 2,783,440
- Advances against Ijarah 70.962 31.928
2,096,652 2,815,368
3.2.1 Net book value of assets in Ijarah under IFAS 2
2021
Cost Acc. Depreciation
As at Addition/ As at As at Charge As at December Book Value as at January 01, 2021
(disposal) December 31, 2021 January 01, 2021 (disposal) 31, 2021 December 31, 2021
(Rupees in '000)
1,051,09
Vehicles 2,970,391 298.387 2,762,865 499.139 1,297,960 1,464,905
7
(505.913) (252.276)
Equipment and 1,186,171 63.376 1,104,004 322.025 312.050 543.219 560.785
Plant and Machinery (145.543) (90.856)
Total 4,156,562 361.763 3,866,869 1,373,12 811.189 1,841,179 2,025,690
2
(651.456) (343.132)
2020
Cost Acc. Depreciation
As at Addition/ As at As at Charge As at December Book Value as at January 01, 2020 (disposal) December 31, 2020 January 01, 2020
(disposal) 31, 2020 December 31, 2020
(Rupees in '000)
Vehicles 3,999,646 250.956 2,970,391 1,039,780

(1,280,211)
Equipment and 1,689,096 798.286 1,186,171 458.593
Plant and Machinery (1,301,211)
Total 5,688,742 1,049,242 4,156,562 1,498,373
(2,581,422)
00)
38,592,574
2,165,000
40,757,574
18,977,083
2,153,276
1,612,874
541.151
27.518
1,381,669
24,693,571
245.136
939.175
1,184,311
2,783,440
31.928
2,815,368
cember Book Value as at January 01, 2021

December 31, 2021
1,464,905
560.785
2,025,690
) December 31, 2020 January 01, 2020
603.062 1,051,097 1,919,294

(591.745)
349.730 322.025 864.146
(486.298)
952.792 1,373,122 2,783,440
(1,078,043
)
3.2.2 Future Ijarah payments receivable
2021
(Rupees in '000)
Not later Later than 1 Over 5 Total

than 1 year year and not years
later than 5 years
Ijarah rental receivables 930.364 969.762 –
2020
Not later Later than 1 Over 5 Total
than 1 year year and not years
later than 5 years
(Rupees in '000)
Ijarah rental receivables 1,100,022 1,782,989 3,456 2,886,467
2021 2020
3.3 Particulars of Islamic financing and related
assets - gross
In foreign currency 4.892 43.647
96,495,162 84,962,433
4 DUE TO FINANCIAL INSTITUTIONS

Secured
With the State Bank of Pakistan
Musharaka under Islamic Export Refinance Scheme (IERS) 4.1 3,027,572 2,845,918
Investment under Islamic Long Term Financing Facility (ILTFF) 4.2 1,045,099 445.848
Investment under Islamic Temporary Economic
Refinance Facility (ITERF) for Plant and Machinery 4.3 3,892,419 1,183,828
Investment under Islamic Refinance Scheme for
Payment of Wages and Salaries (IRSPWS) 4.4 976.304 1,715,813
Investment under Islamic Refinance Facility for
Combating COVID-19 (IRFCC) 24.460 –
Investment under Islamic Financing Facility for
Renewable Energy (IFRE) 4.5 93.138 –
Unsecured
Musharaka arrangements with financial institutions 4.6 7,100,000 14,222,000

Musharaka arrangements with other institution 268.882 183.366
Overdrawn nostro accounts 45.032 –
16,472,906 20,596,773
4.1 These Musharaka arrangements are on a profit and loss sharing basis maturing between February 09, 2022 to June 29, 2022 (2020: Janua
31, 2021 to June 29, 2021) and are secured against demand promissory notes executed in favour of the SBP. A limit of Rs. 3,884 million (2020: R
3,884 million) has been allocated to the Bank by SBP under Islamic Export Refinance Scheme.
4.2 These arrangements are on a profit and loss sharing basis maturing between June 09, 2030 to
December 08, 2031 (2020: June 30, 2030 to November 30, 2030).
1,900,126
2020
886,467
84,918,786
43.647
84,962,433
2,845,918
445.848
1,183,828
1,715,813
14,222,000
183.366
–
20,596,773
y 09, 2022 to June 29, 2022 (2020: January
BP. A limit of Rs. 3,884 million (2020: Rs.
30 to
4.3 These arrangements are on a profit and loss sharing basis maturing between August 11, 2024 to
December 21, 2031 (2020: November 01, 2030 to December 05, 2030).
4.4 These arrangements are on a profit and loss sharing basis maturing between January 29, 2022 to
April 12, 2023 (2020: April 13, 2021 to April 12, 2023).
4.5 These arrangements are on a profit and loss sharing basis maturing between June 29, 2022 to
August 3, 2026 (2020: Nil).
4.6 This represents Musharaka arrangements with banks carrying profit at expected rates ranging from 9.80% to 10.45% per annu
(2020: 6.70% to 7.20% per annum) and having maturity till February 03, 2022.
5 DEPOSITS AND OTHER ACCOUNTS

2021 2020
In Local In Foreign Total In Local In Foreign Total
(Rupees in '000)
Customers

Term deposits 28,774,330 – 28,774,330 17,861,765 79.103
Others 4,877,521 – 4,877,521 2,693,912 –
114,333,645 4,708,013 119,041,658 88,888,805 4,225,683 93,114,488
Current deposits 260.021 127 260.148 148.391 138
Savings deposits 919.672 – 919.672 2,462,010 1.634
Term deposits 2,526,300 – 2,526,300 3,526,500 –
3,705,993 127 3,706,120 6,136,901 1,772 6,138,673
118,039,638 4,708,140 122,747,778 95,025,706 4,227,455 99,253,161

2021 2020
(Rupees in '000)
Individuals 45,892,319 43,739,410

Government (Federal and Provincial) 6,488,298 4,253,371
Public Sector Entities 8,759,121 4,861,494
Banking Companies 50.521 2.075
Non-Banking Financial Institutions 3,655,598 6,136,598
Private Sector 57,901,921 40,260,213
122,747,778 99,253,161
5.2 This includes deposits eligible to be covered under takaful arrangements amounting to Rs. 71,670.390
, 2024 to
9, 2022 to
ne 29, 2022 to
anging from 9.80% to 10.45% per annum
30,677,500
41,802,208
17,940,868
2,693,912
4,225,683 93,114,488
148.529
2,463,644
3,526,500
1,772 6,138,673
4,227,455 99,253,161
43,739,410
4,253,371
4,861,494
2.075
6,136,598
40,260,213
99,253,161
Rs. 71,670.390
2021 2020
6 CHARITY BALANCE
Opening balance Additions during the year 46.615
- Received from customers against late payment 7.316

- Dividend purification amount 1.093
- Charity against other Non-Shariah compliant income 265
- Profit on charity saving account 673
9.347
Charity paid during the year 6.1 (25.500)

Charity reversed during the year (21.639)
Closing balance 8.823
6.1 Charity was paid to the following institutions:
The Patients’ Bahbood Society for Aga Khan University

Hospital 1.000
Al-Khidmat Foundation Pakistan 2.000

Arthritis Care Centre 1.000
Aziz Jehan Begum Trust for the Blind 1.000
Chiniot Anjuman Islamia –
Chiniot Blood Bank and Dialysis Centre –
Family Welfare Society 1.000
Fatimid Foundation –
Indus Hospital 2.000
Infaq Memorial Trust 1.000
Layton Rehmatullah Benevolent Trust –
Mind Organization 500
Pink Ribbon –
Saleem Memorial Trust Hospital 3.500
Saylani Welfare Trust 2,000
Shaukat Khanam Memorial Cancer Hospital and Research 1,000
Centre
Sindh Institute of Urology & Transplantation 2.000

The Citizens Foundation 1.000
Jahandad Society for Community Development –
The Lahore Hospital Welfare Society 500
Al - Mustafa Welfare Society –
Frontier Foundation blood transfusion Centre –
The Hunar Foundation 2.000
Alamgir Welfare Trust International 2,000
Institute of Business Administration (Center of Excellence in 2,000
Islamic Finance)
Zubaida Medical Center –

Mofad e Amma Chiniot Sheikh Association –
25.500
6.2 Charity was not paid to any staff of the Bank or to any individual / organisation in which a director or
his spouse had any interest at any time during the year.
021 2020
57.782
42.477
771
–
2.085
45.333
(56.500)
–
46.615
1.000
2.000
2.000
3.000
1.000
1.000
3.000
3.000
5.000
3.000
4.000
2.000
2.000
6.000
2,000
3,000
3.000
4.000
1.500
2.000
500
500
–
–
–
1.000
1.000
56.500
r
2021 2020
ISLAMIC BANKING BUSINESS ACCUMULATED LOSS
7 Opening balance
Islamic banking profit / loss for the year Transfer to statutory reserve
Taxation (1,363,651)
Other adjustments Closing balance 225.051
CONTINGENCIES AND COMMITMENTS (20.086)
Guarantees 8.1
Commitments 8.2 (124.619)
Other contingent liabilities 1.303
8.1 Guarantees: (1,282,002)
Performance guarantees Other guarantees
8.2 Commitments:
8 Documentary credits and short-term trade-related transactions
Letters of credit
7,787,920
Forward foreign exchange contracts 8.2.1 16,115,126
Commitments for acquisition of: 450.782
Intangible assets Fixed assets
24,353,828
Other commitments 8.2.2
8.2.1 Commitments in respect of forward foreign exchange contracts
Purchase Sale 3,501,067
8.2.2 Other Commitments
Commitments to extend credit 8.2.2.1 4,286,853
7,787,920
13,821,410
1,499,325
55.401
30.036
708.954
16,115,126
489.060
1,010,265
1,499,325
708.954
8.2.2.1 Other than those stated above, the Bank makes commitment(s) to extend credit in the normal course of business including re
parties but these being revocable commitments do not attract any penalty or expense if the facility is unilaterally withdrawn.
2021 2020
(Rupees in '000)
Claim against the Bank not acknowledged as debt
450.782
Rupees in '000)
(1,531,969)
393.079
(41.663)
(184.763)
1.665
(1,363,651)
8,000,674
20,583,025
437.433
29,021,132
3,935,124
4,065,550
8,000,674
7,654,971
11,909,879
10.724
–
1,007,451
20,583,025
5,046,837
6,863,042
11,909,879
1,007,451
t in the normal course of business including related

nse if the facility is unilaterally withdrawn.
437.433
This includes claim by a third party against the Bank, amounting to Rs. 425.820 million (December 31, 2020: Rs. 425.820 million) wh
being contested in the Court of law. The suit has been disposed off by the Court vide Order dated May 10, 2019 wherein the status quo
been ordered to be maintained with respect to bank guarantee and the matter has been referred to arbitration with the consent of the par
However the Bank has not received any official notice to attend the arbitration proceedings till date.
In addition to the above, this includes claim by different parties against the bank amounting to Rs. 24.962 million (December 31, 2020:
11.613 million) which is pending before the court. Based on legal advice and / or internal assessments, management is confident that th
matters will be decided in the Bank’s favour and the possibility of any adverse outcome is remote. Accordingly, no provision has been
in these financial statements.
The Sindh Revenue Board (SRB) has issued order under “Sindh Sales Tax on Services Act, 2011”, for the year 2018 thereby raising de
of Rs. 1.775 million. The Bank has filed appeal before Commissioner of Inland Revenue Appeals which is pending adjudication. The
management of the Bank, in consultation with its tax advisor, is confident that the decision in respect of the above matter would be in t
Bank’s favor and accordingly no provision has been made in these financial statements with respect thereto.
2021 2020
(Rupees in '000)
9 PROFIT / RETURN EARNED
Financings Investments in 6,793,308

- available for sale securities 1,962,671
- held to maturity securities 369.580

2,332,251
Musharaka arrangements with financial institutions 70.147
Deposits with financial institutions 7.010
9,202,716
10 PROFIT / RETURN EXPENSED
Deposits and other accounts 3,894,499

Musharaka arrangements with the State Bank of Pakistan under IERS 90,942
Musharaka arrangements with other financial institutions 662.374

Musharaka arrangements with other institution 17.983
Unwinding of liability against right-of-use of asset 343.047
5,008,845
11 PROFIT / (LOSS) DISTRIBUTION TO DEPOSITORS’ AND SPECIFIC POOLS
11.1 The Bank is maintaining the following types of pools for profit declaration and distribution:
1) General Pool
2) IERS Musharaka Pool
3) Treasury Musharaka / Mudaraba Pools
4) Special Musharaka Pool
5) Equity Pool
Features, risks and rewards of each pool are given below:
1) General Pool
The Bank manages one general pool for its depositors’ (Rabbul Mal) maintaining deposits under Mudaraba in both local and fo
currencies and also commingled its equity in this pool. The income (gross income less direct expenses) generated from the pool is distr
between Bank’s equity and depositors’ fund in proportion to their respective share in the pool. Under the Mudaraba mechanism, the inc
so distributed to depositors’ fund is shared between the Bank (Mudarib) and depositors’ (Rabbul Mal) according to the pre-agreed prof
sharing ratios and assigned weightages.
The deposits and funds accepted under the General Pool are deployed to diversified sectors and avenues of the economy / bu
mainly to ‘Agriculture, Forestry & Fishing’, ‘Textile & Allied’, ‘Food & Allied’, ‘Distribution & Trade’, ‘Investment in
Government of Pakistan Ijarah Sukuk’, etc.
Parameters associated with risk and rewards
Following are the consideration attached with risk and reward of general pool:
- Period, return, safety, security and liquidity of investment.
- Financing proposals under process at various stages and likely to be extended in the near future.
- Expected amount of procurement of deposit during coming days as a result of concerted marketing efforts of the
- Element of risk attached to various types of investments.
- SBP rules and Shari’ah clearance.
2) Islamic Export Refinance Scheme (IERS) Musharaka Pool

The Bank manages IERS Musharaka Pool for funds accepted from SBP under IERS. Under the PLS mechanism, the Bank gen
revenues from the pool funds which are shared with the SBP according to the pre-agreed profit sharing ratios. Musharaka investments
the SBP under IERS are channeled towards the export sector of the economy and other financings as per SBP guidelines.
3) Treasury Musharaka / Mudaraba Pools

The Bank accepts funds from other banks to manage its liquidity under Musharaka / Mudaraba mode. The funds accepted are tagged to
remunerative assets having maturity on or after the period for which funds are accepted. The revenue generated from the pool asset is s
between the bank and other member of the pool according to pre-agreed profit sharing ratios or assigned weightages accordingly.
4) Special Musharaka Pool

The Bank also accepts funds / deposits (other than Banks) under Musharaka mode. The comingled funds under this arrangement are
deployed in remunerative assets as per the terms of agreement. The revenue generated from these assets are then shared as per pre-agre
profit sharing ratio.
5) Equity Pool
The Equity Pool consists of Bank’s equity and funds accepted on Qard (non-remunerative current deposit account) basis. The funds of
pool are invested in various assets or ventures which are higher in risk or having longer funding period. In addition to that all staff fina
are financed by this pool. The risk of assets in the pool is borne by the Bank.
Charging of expenses
Direct expenses are being charged to respective pools, while indirect expenses such as general and administrative expenses a
being borne by the Bank as Mudarib. No provision expense is charged to the pool unless it is written off. The direct expense
charged to the pool may include depreciation of Ijarah assets, premium amortization on Sukuk, impairment losses due to phy
damages to specific assets in pools etc. However, this is not an exhaustive list; the Bank’s pool management framework and
respective pool creation memo may identify and specify these and any other similar expenses to be charged to the pool.
December 31, 2020: Rs. 425.820 million) which is
er dated May 10, 2019 wherein the status quo has
erred to arbitration with the consent of the parties.
gs till date.
ng to Rs. 24.962 million (December 31, 2020: Rs.

assessments, management is confident that the
s remote. Accordingly, no provision has been made
ct, 2011”, for the year 2018 thereby raising demand

Appeals which is pending adjudication. The
n in respect of the above matter would be in the
ith respect thereto.
2020
(Rupees in '000)
7,044,066
1,853,889
411.594
2,265,483
215.060
91.442
9,616,051
4,340,687
66,345
468.267
16.900
388.790
5,280,989
deposits under Mudaraba in both local and foreign
ect expenses) generated from the pool is distributed
pool. Under the Mudaraba mechanism, the income
Rabbul Mal) according to the pre-agreed profit
ified sectors and avenues of the economy / business

d’, ‘Distribution & Trade’, ‘Investment in
ed in the near future.

result of concerted marketing efforts of the Bank.
RS. Under the PLS mechanism, the Bank generates

profit sharing ratios. Musharaka investments from
nancings as per SBP guidelines.
araba mode. The funds accepted are tagged to

The revenue generated from the pool asset is shared
ios or assigned weightages accordingly.
omingled funds under this arrangement are

m these assets are then shared as per pre-agreed
e current deposit account) basis. The funds of this

unding period. In addition to that all staff financings
such as general and administrative expenses are

ool unless it is written off. The direct expenses
ation on Sukuk, impairment losses due to physical
the Bank’s pool management framework and the
milar expenses to be charged to the pool.
MCB Islamic Bank Limited (A Subsidiary of MCB Bank Limited)
Notes to the Financial Statements
11.2 Following are the detail of profit distribution among different pool maintained by the Bank:
2021
Pool Profit Rate Profit Rate Profit Mudarib Fee Profit Rate General Hiba Amount
Description & weightage Earned Sharing return of General
announcement Ratio of distributed Hiba
period Mudarib
% % (Rupees in '000) % % (Rupees in '000)
General Pool Monthly 8.58 50.00 2,599,187 5.03 17.31 543.991
period Mudarib
Islamic Monthly Export 4.39 – – 2.00 – –

Refinance (IERS) Pool
Treasury As required 8.29 – – 7.57 – –

Musharaka/
Mudaraba Pool
Equity Pool Monthly (1.63) – – – – –
2020
period Mudarib
General Pool Monthly 10.84 50.00 3,558,858 6.53 20.30 722.410

period Mudarib
Islamic Export Monthly 6.90 – – 2.00 – –

Refinance (IERS)
Pool
Treasury As required 9.60 – – 7.25 – –

Musharaka/
Mudaraba Pool
Special Monthly 10.48 – – 9.21 – –

Musharakh Pool
Equity Pool Monthly 5.33 – – – – –

Retail Banking Group - Central
Circle/ No. of Branches Region No.
of Branches
GUJRANWALA - 124 Gujranwala 32
Gujrat 28
Mandi Bahauddin 28
Sialkot 36
LAHORE EAST - 71 Lahore Defence 25
Lahore Gulberg 24
Lahore Johar Town 22
LAHORE WEST - 92 Lahore City 32

Lahore The Mall 33
Shiekhupura 27
Total RBG - Central 287
Retail Banking Group - North

of Branches
ABBOTTABAD - 96 Abbottabad 28
Attock 20
Muzaffarabad A.K. 23
Swat 25
ISLAMABAD - 92 Fateh Jang 21
Islamabad 26
Rawalpindi Cantt 24
Rawalpindi City 21
PESHAWAR - 99 Kohat 27
Mardan 24
Peshawar East 22
Peshawar West 26
Total RBG - North 287
Retail Banking Group - West

of Branches
FAISALABAD - 85 Faisalabad 30
Faisalabad City 28
Toba Tek Singh 27
JHELUM - 79 Chakwal 26
Jhelum 27
Mirpur A.K. 26
SARGODHA - 94 Jhang 28
Mianwali 31
Sargodha 35
Total RBG - West 258
No. of Sub-
Branches
–
–
–
–
–
–
–
–
–
–
–
No. of Sub-
Branches
–
–
–
1
–
–
–
–
–
–
1
–
02
No. of Sub-
Branches
–
1
–
–
–
–
2
–
1
04
Branch Network 2021
As of December 31, 2021
Retail Banking Group - East
of Branches
BAHAWALPUR - 77 Bahawalnagar 18
Bahawalpur 27
Rahim Yar Khan 32
MULTAN - 71 Dera Ghazi Khan 20
Multan 30
Muzaffargarh 21
SAHIWAL - 73 Okara 22
Sahiwal 24
Vehari 27
Total RBG - East 221
Retail Banking Group - Karachi

of Branches
KARACHI CITY - 54 Karachi City 28
Karachi North 26
KARACHI EAST - 48 Karachi East 23
Karachi South 25
KARACHI WEST - 48 Karachi Central 24
Karachi West 24
Total RBG - Karachi 150
Retail Banking Group - South

of Branches
HYDERABAD - 77 Badin 17
Hyderabad 22
Mirpurkhas 18
Nawabshah 20
QUETTA - 52 Khuzdar 15
Makran 10
Quetta 27
SUKKUR - 75 Larkana 24
Naushero Feroze 24
Sukkur 27
Total RBG - South 204
Corporate Finance & International Banking Group

Corporate Branches 11*
*EPZ not included
Consumer & Digital Banking Group

Privilege Banking 8
No. of Sub-
Branches
–
–
–
–
1
–
1
–
2
02
No. of Sub-
Branches
1
–
–
–
–
–
01
No. of Sub-
Branches
–
–
1
–
–
1
3
–
–
–
05
–
Overseas Branches / International Banking
Sri Lanka
Colombo
Galle
Kandy
Kattankudy
Kollupitiya
Maradana
Pettah
Wellawatte
Bahrain
MCB Offshore Banking Unit (OBU) Bahrain

UAE
MCB Dubai Wholesale Branch (UAE)

Pakistan
EPZ
TOTAL
Groupwise
Group Circles Regions No.
of Branches
RBG–Central 3 10 287
RBG–North 3 12 287
RBG–West 3 9 258
RBG–East 3 9 221
RBG–Karachi 3 6 150
RBG–South 3 10 204
CFIBG (Corporate Branches) 3 5 11
C&DBG (Privilege Banking) – – 8
Total 21 61 1.426
Overseas Branches / International Banking – – 10
EPZ – – 1
Grand Total 21 61 1.437
Province-Wise
Provinces/Territories/AJK Branches Sub-Branches
Azad Jammu & Kashmir 41 –
Balochistan 54 4
Federal Capital Territory 34 –
Gilgit–Baltistan 6 –
Khyber Pakhtunkhwa 156 2
Punjab 830 6
Sindh 305 2
Domestic Total 1.426 14
Overseas Branches / International Banking 10 –
EPZ 1 –
Grand Total 1.437 14
Complete list of Branches along with its contact details is available on below link:https://www.mcb.com.pk/branch-locator/branch-
No. of Branches
1
1
1
1
1
1
1
1
1
11
No. of Sub-
Branches
–
2
4
2
1
5
–
–
14
–
–
14
Total
41
58
34
6
158
836
307
1.440
10
1
1.451
www.mcb.com.pk/branch-locator/branch-locator
Pattern of Shareholding
Shareholdings
No. of Shareholders Total Shares Held
From To
27.332 1 100 880.939
13.692 101 500 3,372,215
5.902 501 1.000 4,418,469
7.848 1.001 5.000 14,015,485
537 5.001 10.000 3,960,156
595 10.001 50.000 13,747,443
124 50.001 100.000 9,003,618
144 100.001 500.000 32,892,912
32 500.001 1,000,000 23,651,812
59 1,000,001 5,000,000 112,333,580
10 5,000,001 10,000,000 67,813,384
4 10,000,001 15,000,000 46,226,536
4 15,000,001 25,000,000 87,577,083
11 25,000,001 Above 765,166,374
56.294 1,185,060,006
Categories of Shareholders
Categories of Shareholders Shares Held
Directors, Chief Executive Officer, and their Spouses and Minor Children 122,496,798
Associated Companies, Undertakings and Related Parties 226,588,984

NIT and ICP 912
Banks, Development Financial Institutions, Non Banking Financial Institutions 23,088,532
Insurance Companies 113,999,087
Modarabas and Mutual Funds 10,239,590
Shareholders Holding 10% 222,606,147
General Public Local 152,704,961
General Public Foreign 8,012,113
Others 305,322,882
Total 1,185,060,006
Total Shares Held
880.939
3,372,215
4,418,469
14,015,485
3,960,156
13,747,443
9,003,618
32,892,912
23,651,812
112,333,580
67,813,384
46,226,536
87,577,083
765,166,374
1,185,060,006
Percentage
10.3368%
19.1205%
0.0001%
1.9483%
9.6197%
0.8641%
18.7844%
12.8858%
0.6761%
25.7643%
100.0000%
Categories of Shareholders
Categories of Shareholders Shares Held
Directors, Chief Executive Officer, their Spouses and Minor Children
Mian Mohammad Mansha 7,834
Naz Mansha 6,424,057
S. M. Muneer 2,059
Muhammad Tariq Rafi 34,876,772
Mrs. Nighat Tariq 5,715,093
Mian Umer Mansha 32,016,378
Iqraa Hassan Mansha 8,000
Mian Hassan Mansha 43,393,671
Muhammad Ali Zeb 550
Mohd Suhail Amar Suresh Bin Abdullah 884
Yahya Saleem 500
Salman Khalid Butt 49,000
Shahzad Hussain 500
Masood Ahmed Puri 1,000
Shariffuddin Bin Khalid 500
122,496,798
Associated Companies, Undertakings and Related Parties
Nishat Mills Limited 88,015,291

Adamjee Insurance Company Limited 55,196,435
Siddiqsons Limited 11,271,920
Adamjee Life Assurance Company Limited 1,200,000
Adamjee Life Assurance Company Ltd-IMF 5,134,085
Adamjee Life Assurance Company Limited-NUIL Fund 96
Adamjee Life Assurance Co.Ltd - DGF 29,500
Nishat (Aziz Avenue) Hotels and Properties Limited 434,176
Nishat Real Estates Development Company (Private) Limited 68,900
Trustee - MCB Provident Fund Pak Staff 34,166,060
Trustee - MCB Employees Pension Fund 22,312,991
Nishat Mills Limited Employees Provident Fund Trust 8,284,390
Trustees of Adamjee Insurance Company Ltd. Employees Provident Fund 66,138
Adamjee Life Assurance Company Ltd. Employees Gratuity Fund 17,500
CDC - Trustee MCB Pakistan Asset Allocation Fund 86,243
CDC - Trustee Pakistan Capital Market Fund 23,000
CDC - Trustee MCB Pakistan Stock Market Fund 237,259
CDC - Trustee Pakistan Pension Fund - Equity Sub Fund 45,000
226,588,984
NIT and ICP
Investment Corporation of Pakistan 912

912
Banks, Development Financial Institutions, Non Banking Financial Institutions
The Bank of Punjab 741

Prudential Investment Bank Ltd. 1,393
Crescent Investment Bank Ltd. 590
Saudi Pak Industrial & Agricultural Investment Co. (Pvt) Ltd 807,992
Trust Leasing Corporation Ltd. 101
Universal Leasing Corporation Ltd. 1
Islamic Investment Bank Ltd. 4
National Development Finance Corporation 433
M/s. Al Faysal Investment Bank Ltd 49
Interasia Leasing Company Limited 950
Pakistan Kuwait Investment Co. (Pvt) Ltd. 1,775,000
Allied Bank Limited 2,821,600
Habib Bank Limited 2,939,227
Faysal Bank Limited 3,860,042
Habib Metropolitan Bank Limited 1,015,241
Bank Al Habib Limited 715,000
Soneri Bank Limited 1,500,000
Percentage
0.0007%
0.5421%
0.0002%
2.9430%
0.4823%
2.7017%
0.0007%
3.6617%
0.0000%
0.0001%
0.0000%
0.0041%
0.0000%
0.0001%
0.0000%
10.3368%
7.4271%
4.6577%
0.9512%
0.1013%
0.4332%
0.0000%
0.0025%
0.0366%
0.0058%
2.8831%
1.8829%
0.6991%
0.0056%
0.0015%
0.0073%
0.0019%
0.0200%
0.0038%
19.1205%
0.0001%
0.0001%
0.0001%
0.0001%
0.0000%
0.0682%
0.0000%
0.0000%
0.0000%
0.0000%
0.0000%
0.0001%
0.1498%
0.2381%
0.2480%
0.3257%
0.0857%
0.0603%
0.1266%
Saudi Pak Leasing Company Limited 495
Bank Alfalah Limited 2,450,000
The Punjab Provincial Cooperative Bank 1.558
Escorts Investment Bank Limited 225
National Bank of Pakistan 2,559,436
Askari Bank Limited 1,034,100
House Building Finance Company Limited 41.951
Pair Investment Company Limited 375.000
Sindh Bank Limited 1,020,530
Samba Bank Limited - MT 78.873
Invest Capital Investment Bank Limited 77.000
Falki Capital (Private) Limited 1.000
Float Securities (Pvt.) Limited 10.000
23,088,532
Insurance Companies
National General Insurance Co. Ltd. 1.359

Business & Industrial Insurance Co. Ltd. 9
M/s. New Jubilee Insurance Co. Ltd. 2
The South British Insurance Company Ltd. 1.864
M/s. Beema Pakistan Company Ltd. 69
E.F.U. General Insurance Ltd. 713
Orient Insurance Co. Ltd. 3
Premier Insurance Limited 125.204
Jubilee General Insurance Company Limited 1,180,000
State Life Insurance Corp. of Pakistan 23,059,087
EFU Life Assurance Ltd. 5,442,695
Pakistan Reinsurance Company Limited 500.000
Allianz EFU Health Insurance Limited 12.626
The Crescent Star Insurance Co.Ltd. 3
Jubilee Life Insurance Company Limited 23,991,810
East West Insurance Co.Ltd 25.000
Century Insurance Company Ltd. 16.561
GHAF Limited 52.500
Security General Insurance Co Ltd. 59,136,076
The Pakistan General Insurance Co. Limited 106
IGI Life Insurance Limited 2.400
Alfalah Insurance Company Limited 136.000
Askari General Insurance Company 315.000
113,999,087
Modarabas and Mutual Funds
First Hajveri Modaraba 60

Crescent Modaraba Managment Co. Ltd 17
First Elite Capital Modaraba 39
First Crescent Modaraba 4.030
Trust Modaraba 313
UNICAP Modaraba 15
First Interfund Modaraba 2
Industrial Capital Modaraba 4
Safeway Fund (Pvt) Ltd 1.665
Pak Asian Fund Limited 162
Safeway Mutual Fund Ltd 16
Golden Arrow Selected Stocks Fund Ltd 15
Prudential Stocks Funds Limited 233
M/s. Asian Stock Fund Ltd 4
PICIC Benovelent Fund-2 29
CDC - Trustee PICIC Investment Fund 183.753
CDC - Trustee PICIC Growth Fund 248.004
CDC - Trustee Atlas Stock Market Fund 1,640,826
CDC - Trustee Faysal Stock Fund 907.608
CDC - Trustee Alfalah GHP Value Fund 85.723
CDC - Trustee Unit Trust of Pakistan 4
0.0000%
0.2067%
0.0001%
0.0000%
0.2160%
0.0873%
0.0035%
0.0316%
0.0861%
0.0067%
0.0065%
0.0001%
0.0008%
1.9483%
0.0001%
0.0000%
0.0000%
0.0002%
0.0000%
0.0001%
0.0000%
0.0106%
0.0996%
1.9458%
0.4593%
0.0422%
0.0011%
0.0000%
2.0245%
0.0021%
0.0014%
0.0044%
4.9901%
0.0000%
0.0002%
0.0115%
0.0266%
9.6197%
0.0000%
0.0000%
0.0000%
0.0003%
0.0000%
0.0000%
0.0000%
0.0000%
0.0001%
0.0000%
0.0000%
0.0000%
0.0000%
0.0000%
0.0000%
0.0155%
0.0209%
0.1385%
0.0766%
0.0072%
0.0000%
CDC - Trustee Akd Index Tracker Fund 103.468
Tri-Star Mutual Fund Limited 754
CDC - Trustee UBL Stock Advantage Fund 984.248
Crescent Standard Business Management (Pvt) Limited 1
CDC - Trustee NBP Stock Fund 284.351
CDC - Trustee NBP Balanced Fund 22.500
CDC - Trustee APF-Equity Sub Fund 77.500
CDC - Trustee JS Pension Savings Fund - Equity Account 15.700
CDC - Trustee HBL - Stock Fund 68.964
CDC - Trustee HBL Multi - Asset Fund 22.900
CDC - Trustee Alfalah GHP Stock Fund 435.762
CDC - Trustee Alfalah GHP Alpha Fund 149.204
CDC - Trustee NIT-Equity Market Opportunity Fund 1,168,176
CDC - Trustee ABL Stock Fund 391.126
CDC - Trustee Lakson Equity Fund 717.665
CDC - Trustee NBP Sarmaya Izafa Fund 86.800
CDC - Trustee HBL PF Equity Sub Fund 40.600
CDC - Trustee UBL Asset Allocation Fund 52.000
CDC - Trustee First Capital Mutual Fund 30.000
CDC - Trustee UBL Retirement Savings Fund - Equity Sub Fund 145.000
CDC - Trustee National Investment (Unit) Trust 1,005,735
CDC - Trustee ABL Pension Fund - Equity Sub Fund 22.219
CDC-Trustee NITPF Equity Sub-Fund 26.000
Aba Ali Habib Securities (Pvt) Limited - MF 300
CDC - Trustee Lakson Tactical Fund 63.626
CDC - Trustee NBP Financial Sector Fund 82.000
CDC - Trustee UBL Financial Sector Fund 933.432
CDC - Trustee UBL Dedicated Equity Fund 3.700
CDC - Trustee Allied Finergy Fund 125.939
CDC - Trustee NIT Asset Allocation Fund 62.500
CDC - Trustee NIT Pakistan Gateway Exchange Traded Fund 23.226
CDC - Trustee NBP Pakistan Growth Exchange Traded Fund 21.672
10,239,590
Share Holders Holding 10%
Maybank International Trust (Labuan) Berhad 222,606,147
222,606,147
General Public 160,717,074
- Local 152,704,961
- Foreign 8,012,113
Others 305,322,882
- Foreign Companies 63,427,525

- Local Companies 74,596,850
- D.G. Khan Cement Company Limited 102,277,232
- Nishat Mills Limited (as disclosed in Associated Companies, Undertakings and Related Parties) –
- Bugis Investments (Mauritius) Pte Ltd 65,020,947
- Executives (as per the threshold determined by Board of Directors) 328
Total 1,185,060,006
All the trades in shares carried out by Directors, CEO, CFO, Secretary, Executives, their Spouses and Minor
during the year 2021 are given below:
Name Status No. of Shares Purchase/Sale/Transfer
Muhammad Tariq Rafi Director 2,782,468
Mian Umer Mansha Director 30.000
Mian Hassan Mansha Spouse of Director 30.000
Notice of 74th Annual General Meeting

Notice is hereby given that 74th Annual General Meeting of MCB Bank Limited (the “Bank”) will be held on Tuesday, March 29, 2022 at 11:00 AM (PST)
Imperial Ball Room, 4th Floor-Banquets, The Nishat Hotel, Emporium, Abdul Haq Road, Johar Town, Lahore, with Video Link facility to transact the follo
business:
Ordinary Business:
1. To confirm/approve the Minutes of Annual General Meeting held on March 27, 2021.
2. To receive, consider and adopt the Annual Audited Separate and Consolidated Financial Statements of the Bank together with the Directors’ Report an
Auditors’ Report thereon and the Chairman’s Review Report for the year ended December 31, 2021.
3. To appoint Auditors of the Bank and fix their remuneration. The Members are hereby notified that the Board’s Audit Committee and the
of Directors have recommended the name of retiring auditors, namely, M/s A. F. Ferguson & Co., Chartered Accountants, being eligible, for re-appointmen
auditors of the Bank.
4. To approve, as recommended by the Board of Directors, the payment of Final Cash Dividend @ 50% i.e., PKR 5.00 per share, having face value of PK
10/- in addition to 140% i.e., PKR 14.00 per share Interim Cash Dividends already declared and paid, thus, total 190% i.e., PKR 19.00 per share for the yea
ended December 31, 2021.
Special Business:
5. To consider and, if deemed fit, to pass an Ordinary Resolution as proposed in the Statement of Material Facts annexed to the Notice circu
to the members, to approve amendments in Directors’ Remuneration Policy of the Bank.
Statement of Material Facts under Section 134(3) of the Companies Act, 2017 (“Act”) alongwith draft ordinary resolution pertaining to the abovementioned
Special Business is annexed to this Notice of Annual General Meeting circulated to the Members of the Bank.
By Order of the Board,

-Sd-
FARID AHMAD
March 07, 2022 Acting Company Secretary
Lahore.
Notes:
1. Minutes of the Annual General Meeting (the “Meeting” or “AGM”) held on March 27, 2021 of MCB Bank Limited (the “Bank”) are available for insp
of Members.
2. The Shares Transfer Books of the Bank will remain closed from March 17, 2022 to March 29, 2022 (both days inclusive). Transfers received at off
of the Share Registrar and Transfer Agent of the Bank at its below mentioned address, at close of business hours on March 16, 2022 will be
treated as being in time for the purpose of entitlement of Final Cash Dividend and also to attend, speak and vote at the AGM of the Bank.
3. All Members are entitled to attend and vote at the Meeting. A member entitled to attend and vote at AGM may appoint another member as a proxy to a
and vote on his/her behalf. No person shall act as a proxy, who is not a member of the Bank. A corporate entity, being a member, may authorize through
resolution of its board or other governing body, an individual to act as its representative and the individual so authorized shall be entitled to exercise the sam
powers on behalf of the corporate entity which he represents.
4. The proxies and in case of corporate entity, the power of attorney or resolution of the board of directors or other governing body (if any) under whic
is signed, a notarized/certified copy of the same in order to be effective must be deposited at the Registered Office of the Bank not later
48 hours (no account shall be taken of any part of the day that is not a working day) before the time for holding the Meeting, and must be duly stampe
signed and witnessed.
5. If a Member appoints more than one proxy, and more than one instrument of proxy is deposited by a Member, all
such instruments of proxy shall be rendered invalid.
6. Members having physical scrip of shares are requested to immediately notify the change, if any, in their registered addresses and e-mails, in
writing, to the Share Registrar and Transfer Agent of the Bank, whereas, CDC Account holders are requested to contact their CDC Participant/CD
Account Services.
7. Central Depository Company of Pakistan (“CDC”) Accountholders will further have to follow the under mentioned guidelines as laid down
Circular No. 01, dated January 26, 2000, issued by the Securities and Exchange Commission of Pakistan (“SECP”):
For Attending the Meeting:
i. In case of individuals, the account-holder or sub-accountholder and/or the person whose securities are in group account and their registration
details are uploaded as per the CDC Regulations, shall authenticate his identity by showing his original Computerized National Identity Card (“C
or original passport at the time of attending the Meeting.
ii. In case of corporate entity, the Board of Directors’ resolution/power of attorney with specimen signature of
the nominee shall be produced (unless it has been provided earlier) at the time of the Meeting.
For Appointing of Proxies:
i. In case of individuals, the account-holder or sub-accountholder and their registration details are uploaded as per the CDC Regulations,
submit the Proxy Form as per the above requirement.
ii. The Proxy Form shall be witnessed by the two persons whose names, addresses and CNIC numbers shall
be mentioned on the Proxy Form.
iii. Attested copy of CNIC or the passport of the beneficial owners and the proxy shall be furnished with the
Proxy Form.
iv. The proxy shall produce his/her original CNIC or passport at the time of the Meeting.
v. In case of corporate entity, the Board of Directors resolution/power of attorney with specimen signature shall
be submitted along with Proxy Form of the Bank.
8. A Proxy Form, both in English and Urdu language, is being sent to the Members, along with Notice of AGM.
9. Copies of the Notice of AGM and the latest annual audited/quarterly financial statements of the Bank have been kept at the
Registered Office of the Bank which can be inspected during the business hours on any working day from the date of publication of th
Notice of AGM till the day before the AGM.
10. Annual Report 2021 including Notice of AGM, and the annual audited financial statements, reports and othermaterial has also
11. Members can attend and participate in the AGM through Video-Link. Pursuant to the provisions of the Companies Act, 2017, t
Coronavirus (COVID-19) Contingency Planning for AGM
As per the requirements of the SECP, the Bank is providing video Link facility for participation in the AGM. This facility is in addition to hold
physical AGM at designated venue. Keeping in view the COVID-19 related Standard Operating Procedures (“SOPs”) issued by the Provisiona
and/or the Federal Government, the Members are encouraged to participate in the meeting through Video Link. The Members or their proxy
holders who wish to attend the AGM through
0.0087%
0.0001%
0.0831%
0.0000%
0.0240%
0.0019%
0.0065%
0.0013%
0.0058%
0.0019%
0.0368%
0.0126%
0.0986%
0.0330%
0.0606%
0.0073%
0.0034%
0.0044%
0.0025%
0.0122%
0.0849%
0.0019%
0.0022%
0.0000%
0.0054%
0.0069%
0.0788%
0.0003%
0.0106%
0.0053%
0.0020%
0.0018%
0.8641%
18.7844%
18.7844%
13.5619%
12.8858%
0.6761%
25.7643%
5.3523%
6.2948%
8.6306%
–
5.4867%
0.0000%
100.0000%
ses and Minor
Purchase/Sale/Transfer
Purchase
Purchase
Purchase
d on Tuesday, March 29, 2022 at 11:00 AM (PST) at

hore, with Video Link facility to transact the following
of the Bank together with the Directors’ Report and
ified that the Board’s Audit Committee and the Board

red Accountants, being eligible, for re-appointment as
% i.e., PKR 5.00 per share, having face value of PKR

s, total 190% i.e., PKR 19.00 per share for the year
ent of Material Facts annexed to the Notice circulated
dinary resolution pertaining to the abovementioned

Bank.
By Order of the Board,

-Sd-
ny Secretary
B Bank Limited (the “Bank”) are available for inspection
(both days inclusive). Transfers received at office

of business hours on March 16, 2022 will be
eak and vote at the AGM of the Bank.
AGM may appoint another member as a proxy to attend

entity, being a member, may authorize through
al so authorized shall be entitled to exercise the same
ors or other governing body (if any) under which it

t the Registered Office of the Bank not later than
e for holding the Meeting, and must be duly stamped,
osited by a Member, all
f any, in their registered addresses and e-mails, in

s are requested to contact their CDC Participant/CDC
low the under mentioned guidelines as laid down by
ission of Pakistan (“SECP”):
ecurities are in group account and their registration

original Computerized National Identity Card (“CNIC”)
h specimen signature of
eting.
n details are uploaded as per the CDC Regulations, shall
d CNIC numbers shall
oxy shall be furnished with the
g.
h specimen signature shall
th Notice of AGM.
tatements of the Bank have been kept at the
ny working day from the date of publication of this
statements, reports and othermaterial has also been placed on website of the Bank. www.mcb.com.pk
o the provisions of the Companies Act, 2017, the shareholders residing in a city and holding at least 10% of the total paid up share capital of the Bank may
n in the AGM. This facility is in addition to hold

g Procedures (“SOPs”) issued by the Provisional
g through Video Link. The Members or their proxy
Video-Link are required to register themselves by providing the following information along with valid CNIC/ Passport (both sides)/atteste
Name of Shareholder Folio/CDC Account Number of Shares Held Valid CNIC/NTN/

Number Passport Number
The Members or their proxies who are registered after necessary verification shall be provided a Video Link facility by the Bank on their e
Statement Under Section 134(3) Of The Companies Act, 2017 In Respect Of Special Business
This statement under Section 134(3) of the Companies Act, 2017 sets out the material facts pertaining to the Special Business to be transacted at AGM of
Bank:
Agenda Item No. 5

Amendments in Directors’ Remuneration Policy:
The Board of Directors has approved amendments in Directors’ Remuneration Policy of the Bank in accordance with
the requirements of the Corporate Governance Regulatory Framework (“CGRF”) issued by the State Bank of Pakistan.
The comparison of the major amendments is as follows:
Clause Ref. No. Existing Clause Amended Clause
The Board may determine additional remuneration The Board may determine additional remuneration
for a director including the Chairman for for a director including the Chairman of Board
performing extra services. However, such additional and Chairman of any Board’s Sub-Committees of the
remuneration shall not exceed the limits as prescribed in Bank for performing extra services. However, such
1.3 BPRD Circular No. 03 of 2019. additional remuneration shall not exceed the limits as
prescribed in G-14 of the CGRF.
The Bank shall either make all arrangements for The Bank shall either make all arrangements for
travelling, boarding and lodging of Board Members travelling, boarding and lodging of Board Members
for attending Board and its Committees meetings and any for attending Board and its Committees meetings and any
other meeting relating to Bank’s business or reimburse other meeting relating to Bank’s business or reimburse
4.1 such expenses to the Board Members, on actual basis. such expenses including any relevant domestic training
to the Board Members, on actual basis.
The Shareholders are requested to consider and if thought fit, to approve, with and without modification, the amended
Directors’ Remuneration Policy of the Bank by passing the following resolution as an Ordinary Resolution:
“RESOLVED THAT the amended Directors’ Remuneration Policy, as recommended by the Board of Directors of the Bank, in
accordance with the requirements of the Corporate Governance Regulatory Framework, issued by the State Bank of Pakistan, be an
hereby approved.”
The Directors of the Bank have no personal interest, directly or indirectly, in the above special business, save to the extent of their respective shareholding i
Bank. Further, the amended Directors’ Remuneration Policy of the Bank has been kept at the Registered Office of the Bank which can be inspecte
during the business hours on any working day from the date of publication of this Notice of AGM till the day before AGM.
Attention of Shareholders is drawn towards Circulars/Notifications:
The following Circulars/Notifications require special attention of Members of the Bank:
1. Requirement of Valid CNIC and IBAN:
As per the regulatory requirements issued by the Securities & Exchange Commission of Pakistan, the payment of cash dividend shall only be mad
the Shareholders who have provided copies of their valid CNIC/ NICOP/ Passport (in the case of Individuals) and NTN certificate (in the
of corporate entities) and valid details of designated International Bank Account Number (“IBAN”). In case of non-availability of the said
information, the Bank will hold the payment of cash dividend. Therefore, shareholders who have not yet provided the required information are
requested to provide copies of their valid CNIC/NICOP/NTN/Passport and details of valid IBAN.
2. Requirement of FBR’s Approval or Valid Tax Exemption Certificate for Claim of Exemption U/S 150 of the
Income Tax Ordinance, 2001:
The Honorable Lahore High Court, Lahore, in its decision has advised that the Mutual Funds as approved by the Federal Board of Revenue
(“FBR”), are not required to provide exemption certificate under Section 159 of the Income Tax Ordinance, 2001 (“Ordinance”) to cla
immunity as per clause (47B) of Part-IV of the Second Schedule to the Ordinance. Such Shareholders are requested to provide either
approval certificate from FBR or in the absence of the said certificate, valid exemption certificate under Section 159 (1) of the
Ordinance issued by the concerned Commissioner of the Income Tax, Inland Revenue, FBR. In case of non-availability of approval / exemptio
certificate(s), the deduction of advance tax on dividend shall be made as per the relevant provisions of the Ordinance.
3. Deduction of Withholding Tax as Filer/Non-filer and Joint Shareholders:
FBR has provided the Active Tax-Payer List (“ATL”), for identification of filer/non-filer status of the shareholders on the basis of
NTN/CNIC number. In case of non-availability of valid NTN/CNIC number with the Share Registrar and Transfer Agent of the Bank, it will
be possible to identify the status of Shareholder as filer or non-filer and such shareholders will be treated as ‘Non-filer’.
Further, Joint shareholders are also requested to communicate their percentage of shareholding to the Share Registrar and Transfer
Agent of the Bank in order to calculate withholding tax applicable to each Joint shareholder based on filer/non-filer status. Kindly not
that in case of non-receipt of such information, each joint shareholder will be assumed to hold equal proportion of shares and the
deduction will be made accordingly.
4. Circulation of Annual Audited Financial Statements and Notice of AGM to Members:SECP has allowed companies to circulat
5. Unclaimed Dividends and Shares Certificates:
The shareholders who have not yet claimed their cash dividends, right and bonus shares, which are either kept with the Shareholders themselves o
returned as undelivered to the Share Registrar and Transfer Agent of the Bank, are requested to make a claim for such unpaid/unclaimed dividend
right and bonus shares with the Bank. In this regard, the Bank has sent notices to the Shareholders at their registered addresses and also published
the newspapers having wide circulation requesting them to submit their claims. In the absence of such claims, the Bank will proceed to comply w
regulatory requirements.
6. Zakat Declaration (CZ-50):
Zakat will be deducted from the dividends at source under the Zakat & Usher Laws and will be deposited within the prescribed period with the re
authority. Please submit your Zakat declarations under the Zakat and Usher Ordinance, 1980 & Rule 4 of the Zakat (Collection and Refund) Rule
1981, in case you want to claim exemption, with your brokers or the Central Depository Company of Pakistan Limited (in case the shares are hel
Book-Entry Form) or to Bank’s Share Registrar and Transfer Agent (in case the shares are held in Physical Form) at its below mentioned address
7. Conversion of Physical Shares into Book-Entry Form:
SECP has advised the listed companies to pursue their Members who still hold shares in physical form to convert their shares into Book-Entry Form. All
Members are hereby advised to open Investor Account directly with Central Depository Company of Pakistan Limited or CDC sub-account with any of th
active Stock Brokers of Pakistan Stock Exchange to facilitate conversion of Physical shares into Book-Entry Form. Members are further informed that
holding shares in Book-Entry Form have several benefits including but not limited to secure and convenient custody of shares, ready to trade a
conveniently transferable, no risk of the loss, damage or theft, no stamp duty on transfer of shares in Book-Entry Form and hassle-free credit of bonus and
shares. The shareholders may also contact the Share Registrar and Transfer Agent of the Bank for the conversion of Physical shares into Book-Entry Form
below mentioned address.
M/s THK Associates (Pvt) Ltd.,

Share Registrar and Transfer Agent-MCB Bank Limited
Plot No. 32-C, Jami Commercial Street 2, D.H.A., Phase VII, Karachi-75500. Pakistan.
P.O. Box No. 8533, UAN: +92 (21) 111-000-322,
Fax: +92 (21) 35310191.
Email: sfc@thk.com.pkWebsite: www.thk.com.pk

ng with valid CNIC/ Passport (both sides)/attested copy of board resolution /power of attorney as applicable through email at: cat@mcb.com.pk, of the Ba
Mobile Number and Email

Address
ded a Video Link facility by the Bank on their email address. The Login facility shall remain open from the start of the AGM till its proceedings are concl
g to the Special Business to be transacted at AGM of the
accordance with
Bank of Pakistan.
Amended Clause
may determine additional remuneration
or including the Chairman of Board
of any Board’s Sub-Committees of the
orming extra services. However, such
uneration shall not exceed the limits as
G-14 of the CGRF.
either make all arrangements for

arding and lodging of Board Members
oard and its Committees meetings and any
relating to Bank’s business or reimburse
including any relevant domestic training
Members, on actual basis.
modification, the amended

tion:
by the Board of Directors of the Bank, in
ork, issued by the State Bank of Pakistan, be and is
s, save to the extent of their respective shareholding in the

tered Office of the Bank which can be inspected
ill the day before AGM.
Bank:
istan, the payment of cash dividend shall only be made to

case of Individuals) and NTN certificate (in the case
er (“IBAN”). In case of non-availability of the said
have not yet provided the required information are
BAN.
Exemption U/S 150 of the
s as approved by the Federal Board of Revenue

e Income Tax Ordinance, 2001 (“Ordinance”) to claim tax
Shareholders are requested to provide either
ption certificate under Section 159 (1) of the
R. In case of non-availability of approval / exemption
elevant provisions of the Ordinance.
filer status of the shareholders on the basis of

Registrar and Transfer Agent of the Bank, it will not
eholders will be treated as ‘Non-filer’.
f shareholding to the Share Registrar and Transfer

older based on filer/non-filer status. Kindly note
e assumed to hold equal proportion of shares and the
mbers:SECP has allowed companies to circulate Annual Audited Financial Statements along with Notice of Annual General Meeting to its Members thro
ch are either kept with the Shareholders themselves or

to make a claim for such unpaid/unclaimed dividends,
olders at their registered addresses and also published in
e of such claims, the Bank will proceed to comply with
be deposited within the prescribed period with the relevant

& Rule 4 of the Zakat (Collection and Refund) Rules,
mpany of Pakistan Limited (in case the shares are held in
eld in Physical Form) at its below mentioned address.
m to convert their shares into Book-Entry Form. All such
Pakistan Limited or CDC sub-account with any of the
k-Entry Form. Members are further informed that
e and convenient custody of shares, ready to trade and
Book-Entry Form and hassle-free credit of bonus and right
e conversion of Physical shares into Book-Entry Form at
Important terms and formulae used for calculation in
Financial Statements are briefly described here;
Accrual Basis
Recognizing the effects of transactions and other events when they occur
without waiting for receipt or payment of cash or its equivalent.
Basel III
Basel III (or the Third Basel Accord) is a global, voluntary regulatory
standard on bank capital adequacy, stress testing and market liquidity
risk.
Basis point
One hundredth of a per cent i.e. 0.01 per cent. 100 basis points is 1 per cent.
Used when quoting movements in interest rates or yields on securities.
Breakup Value per share
Represents the total worth (equity) of the business per share,
calculated as shareholders’ equity or Net Assets excluding the impact
of revaluation on fixed assets, divided by the total number of share
outstanding at year end.
BSD
Banking Surveillance Department of State Bank of Pakistan
BPRD
Banking Policy and Regulation Department of State Bank of Pakistan
CAGR
An abbreviation for Compound Annual Growth Rate.
Capital Adequacy Ratio (CAR)
The relationship between capital and risk weighted assets as defined in
the framework developed by the State Bank of Pakistan.
Cash Reserve Ratio (CRR)
Cash Reserve Ratio is the amount of funds that the banks have to keep with
SBP. Cash Reserves was required to be maintained at an average of 5% of
total of demand liabilities and time deposits with tenor of less than 1 year,
during the reserve maintenance period however effective November 12,
2021 Cash Reserves shall be maintained at an average of 6% of total of
demand liabilities and time deposits with tenor of less than 1 year. (Ref:
DMMD Circular No. 20 of 2021)
Cash Equivalents
Short-term highly liquid investments that is readily convertible to
known amounts of cash and which are subject to an insignificant
risk of changes in value.
Commitment to Extend Credit
Credit facilities approved but not yet utilized by the client as at the Balance
Sheet date.
Cost to Income Ratio
The proportion of admin expenses to total income, represented as
combination of net interest income and non-interest income.
Credit Risk Spread
The credit spread is the yield spread between securities with the same
coupon rate and maturity structure but with different associated credit
risks, with the yield spread rising as the credit rating worsens. It is the
premium over the benchmark or risk-free rate required by the market to
take on a lower credit quality.
Discount rate
Discount is the rate at which SBP provides three-day Repo facility
to banks, acting as the lender of last resort.
Dividend Payout Ratio
Dividends (cash dividend plus bonus shares) paid per share as a
fraction of earnings per share (EPS).
Dividend Yield Ratio
Dividend per share divided by the market value of share. Earnings Per
Share
Profit after taxation divided by the weighted average
number of ordinary shares in issue.
Efficiency Ratio
Calculated as Net Interest Income as a percentage of working funds
/ operating cost.
Fixed Deposits
Deposits having fixed maturity dates and a rate of return.
Forced Sale Value (FSV)
Forced Sale Value means the value which fully reflects the
possibility of price fluctuations and can currently is obtained
by selling the mortgaged / pledged assets in a forced / distressed sale
conditions.
Foreign Exchange Options (FX Options)
Contracts that give the buyer the right, but not the obligation, to
buy or sell one currency against the other, at a predetermined price and
on or before a predetermined date. The buyer of a call/ put FX option
has the right to buy/sell a currency against another at a specified
rate.
Forward Purchase Contract
Forward purchase contract is one in which the exporter enters into the
forward booking contract to protect himself from the exchange
rate fluctuation at the time of receiving payment.
Forward Sale Contract
In a forward sale contract the importer enters into a transaction to
buy foreign currency from the Bank at the predetermined rate to protect
himself from the exchange fluctuation at the date the payment.
Glossary of Terms
Government Securities
Government Securities shall include such types of Pak. Rupee
obligations of the Federal Government or a Provincial Government
or of a Corporation wholly owned or controlled, directly or indirectly,
by the Federal Government or a Provincial Government and guaranteed
by the Federal Government as the Federal Government may, by
notification in the Official Gazette, declare, to the extent
determined from time to time, to be Government Securities.
Historical Cost Convention
Recording transactions at the actual value received or paid.
Impairment allowances
A provision held on the balance sheet as a result of the raising of a
charge against profit for the incurred loss inherent in the
lending book. An impairment allowance may either be identified
or unidentified and individual or collective.
IAS
International Accounting Standards
IFRS
International Financial Reporting Standards
IFRIC
International Financial Reporting Interpretation Committee
Interest Spread
Represents the difference between the average interest rate earned and
the average interest rate paid on funds.
Loan losses and provisions
Amount set aside against identified and possible losses on loans,
advances and other credit facilities as a result of their becoming party or
wholly uncollectible.
Liquid Assets
The assets which are readily convertible into cash without recourse to a
court of law and mean encashment / realizable value of government
securities, bank deposits, certificates of deposit, shares of listed
companies which are actively traded on the stock exchange, NIT
Units, certificates of mutual funds, Certificates of
Investment (COIs) issued by DFIs / NBFCs rated at least ‘A’ by
a credit rating agency on the approved panel of State Bank of Pakistan,
listed TFCs rated at least ‘A’ by a credit rating agency on the approved
panel of State Bank of Pakistan and certificates of asset
management companies for which there is a book maker quoting
daily offer and bid rates and there is active secondary market trading.
These assets with appropriate margins should be in possession of the
banks / DFIs with perfected lien.
a credit rating agency on the approved panel of State Bank of Pakistan,
listed TFCs rated at least ‘A’ by a credit rating agency on the approved
panel of State Bank of Pakistan and certificates of asset
management companies for which there is a book maker quoting
daily offer and bid rates and there is active secondary market trading.
These assets with appropriate margins should be in possession of the
banks / DFIs with perfected lien.
Return on Assets (ROA)

Indicator of profitability of the business relative to the value of its assets, calculated by dividing the net profit (profit after tax) to
average total assets for the period.
Statutory Reserve Funds

A capital reserve created as per the provisions of the section 21 of Banking Companies Ordinance, 1962.
Small Enterprise
A Small Enterprise (SE) is a business entity which meets both the following parameters:
Number of Employees Annual Sales Turnover
*Up to 50 Up to Rs. 150 million
*including contract employees.
Strategic Investment
Strategic Investment is an investment which a bank / DFI make with the intention to hold it for a period of minimum 5 years.
The following must be noted further in respect of strategic investment:

• The bank should mark strategic investment as such at the time of investment
• If there are a series of purchases of stocks of a company, the minimum retention period of 5 years shall be counted from the date of the last pur
SRO
Statutory Regulatory Order
KIBOR – (Karachi Interbank Offered Rate)
KIBOR is the interbank lending rate between banks in Pakistan and is used as a benchmark for lending.
LIBOR (London Interbank Offered Rate)

An interest rate at which banks can borrow funds, in marketable size, from other banks in the London interbank market. The LIBOR is fix
a daily basis by the British Bankers’ Association.
VaR
Value at Risk is an estimate of the potential loss which might arise from market movements under normal market conditions, if the cur
positions were to be held unchanged for one business day, measured to a confidence level of 97.5 per cent.
Weighted Average Cost of Deposits

Percentage of the total interest expense on average deposit of the bank for the period.
Market Capitalization
Number of ordinary shares in issue multiplied by the market value of share as
at any cut-off date.
Net Interest Income (NII)
Net interest income is the difference between the interest earned on assets and
interest expensed on liabilities.
Non-Performing Loan
A non-performing loan is a loan that is in default or close to being in default.
Loans become non-performing in accordance with provision of prudential
regulations issued by SBP.
Non-Performing Assets
A financial asset held on the books of a financial institution with respect to
which the obligor has been in arrears for more than one year on any payment
obligation and includes all security interests with respect thereto.
NPLs to Gross Advances/Loans
Represents the infected portfolio of the bank and is calculated by dividing the total
non-performing loans by gross advances.
Non-Performing Loan-Substandard Category
Where mark-up/interest or principal is overdue by 90 days or more from the due
date.
Non-Performing Loan-Doubtful Category
Where mark-up/interest or principal is overdue by 180 days or more from the
due date.
Non-Performing Loan-Loss Category
Where mark-up/interest or principal is overdue by one year or more from the
due date and Trade Bill (Import/ Export or Inland Bills) are not paid/adjusted
within 180 days of the due date.
Off Balance Sheet Transactions
Transactions that are not recognized as assets or liabilities in the statement of
financial position but which give rise to contingencies and commitments.
Price Earnings Ratio (P/E Ratio)
Market price of a share divided by earnings per share. Repo / Reverse Repo A
repurchase agreement, or repo, is a short term funding agreements which allow a
borrower to sell a financial asset, such as ABS or government bonds as
collateral for cash. As part of the agreement the borrower agrees to repurchase the
security at some later date, usually less than 30 days, repaying the proceeds of the
loan. For the party on the other end of the transaction (buying the security and
agreeing to sell in the future) it is a reverse repurchase agreement or reverse repo.
Return on Equity (ROE)
Represents the ratio of the current year’s profit available for distribution to
the weighted average shareholders’ equity over the period under review,
calculated by dividing the net profit (profit after tax) to the average equity
(before surplus) for the period.
security at some later date, usually less than 30 days, repaying the proceeds of the
loan. For the party on the other end of the transaction (buying the security and
agreeing to sell in the future) it is a reverse repurchase agreement or reverse repo.
Return on Equity (ROE)
Represents the ratio of the current year’s profit available for distribution to
the weighted average shareholders’ equity over the period under review,
calculated by dividing the net profit (profit after tax) to the average equity
(before surplus) for the period.
ive to the value of its assets, calculated by dividing the net profit (profit after tax) to the
of the section 21 of Banking Companies Ordinance, 1962.
meets both the following parameters:

r
k / DFI make with the intention to hold it for a period of minimum 5 years.
trategic investment:
ch at the time of investment
ompany, the minimum retention period of 5 years shall be counted from the date of the last purchase.
banks in Pakistan and is used as a benchmark for lending.
nds, in marketable size, from other banks in the London interbank market. The LIBOR is fixed on
n.
hich might arise from market movements under normal market conditions, if the current
usiness day, measured to a confidence level of 97.5 per cent.
rage deposit of the bank for the period.

Form of Proxy
74th Annual General Meeting
I/We of being
member of MCB Bank Limited, holder of Ordinary Share(s) as per Folio No. and/or CDC Account No.
do hereby appoint Mr./Mrs./Miss having Folio No. /CDC Accoun
or failing him/her, Mr./Mrs./Miss having Folio No. /CDC Account No.
as my/our proxy to attend, speak and vote for me/us on my/our behalf at the 74th Annual General Meeting (“AGM”) of the B
be held on Tuesday, the 29th day of March, 2022 at 11:00 AM (PST) at Imperial Ball Room, 4th Floor- Banquets, The Nishat Hotel, Emporium, A
Haq Road, Johar Town, Lahore, and at any adjournment thereof in the
same manner as I/we/myself/ ourselves would vote if personally present at such meeting.
As witness my / our hand/Seal this day of 2022.

Signed by
CDC Account No.

Folio No.
Participant I.D. Account No.
Signature on Five-Rupees
Revenue Stamp
The signature should agree

with the specimen registered with the Bank.
Witnesses: 2. Name :

1. Name : Address : CNIC
Address : CNIC No. :
No. : Signature :
Signature :
Note:
1. A member eligible to attend, speak and vote at the AGM may appoint another member as his/her proxy who shall have such rights as narrate
Section 137 of the Companies Act, 2017.
2. This Proxy Form, duly completed and signed, must be deposited in the office of M/s THK Associates (Pvt) Limited, the Share Re
and Transfer Agent of the Bank, situated at Plot No. 32-C, Jami Commercial Street 2, D.H.A., Phase VII, Karachi-75400, not later than 48 hours
the time of holding the meeting.
3. If a member appoints more than one proxy and more than one instrument of proxies are deposited by a member with the Share Registrar and
Transfer Agent of the Bank, all such instruments of proxy shall be rendered invalid.
4. For CDC Account Holders / Corporate Entities
• Attested copies of CNIC/ NICOP or the passport of the beneficial owners and the proxy shall be provided with
the Proxy Form.
• The proxy shall produce his/her original CNIC/ NICOP or passport at the time of the meeting.
• In case of a corporate entity, the Board of Directors’ resolution / power of attorney with specimen signature shall be submitted along with Pro
Form to the Share Registrar and Transfer Agent of the Bank.
of being a
Ordinary Share(s) as per Folio No. and/or CDC Account No.
./Mrs./Miss having Folio No. /CDC Account No.
having Folio No. /CDC Account No.
us on my/our behalf at the 74th Annual General Meeting (“AGM”) of the Bank to
Imperial Ball Room, 4th Floor- Banquets, The Nishat Hotel, Emporium, Abdul
t at such meeting.
of 2022.

The signature should agree

with the specimen registered with the Bank.
2. Name :
Address : CNIC
No. :
Signature :
oint another member as his/her proxy who shall have such rights as narrated in
sited in the office of M/s THK Associates (Pvt) Limited, the Share Registrar
ercial Street 2, D.H.A., Phase VII, Karachi-75400, not later than 48 hours before
ument of proxies are deposited by a member with the Share Registrar and
ered invalid.
eficial owners and the proxy shall be provided with
at the time of the meeting.

ower of attorney with specimen signature shall be submitted along with Proxy
74
2022
2022 29
Investors’ Awareness
Registered Office: MCB House, 15 Main Gulberg, Jail Road, Lahore, PakistanU: +92 42 111 000 622 T: +92 42 36041998-9 E: info@mcb
74
g, Jail Road, Lahore, PakistanU: +92 42 111 000 622 T: +92 42 36041998-9 E: info@mcb.com.pk www.mcb.com.pk

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MERA

About the Report

Scope and Boundary of Reporting

• Strategic & Resource Allocation

Vision, Mission & Values

Performance, Position & Outlook

with the International Integrated

rcumstances of an entity. The Bank has adopted the Integrated Reporting

inue to improve the information

• International Financial Reporting

CB Bank Financial Statements. As

hould be included in its integrated report. This report therefore focuses

d requires input from all business units and

e contact vide email: investor.relations@mcb.com.pk

nancial Performance / Financial Ratios 2016 - 2021

Summary of Analyst Briefing

216 Statement of Value Added

Statement of Compliance with the Code of

Unconsolidated Financial Statements

Consolidated Financial Statements

Risk and Opportunities

Providing value added services through operational expansion, geography and

dated Profit and Loss Account

ial solutions to create and nurture long-term

e population with roots that go back over

eve in being the best at always doing the right

We are a performance driven, result oriented

nderstanding their needs and aspirations, both

y of gender and diversity of experience and

2012 The Asset Triple A Best Domestic Bank - Pakistan

MCB Liability Products

MCB Current Deposit Products Category

MCB Savings Deposit Products Category

MCB Term Deposit Products Category

Best Domestic Bank - Pakistan

range of existing segment- based products alongside of introducing digital liability

diverse clientele, the Bank is

Chief Financial Officer:

Company Secretary (Acting):

Registrar’s and Share

Mr. Shahzad Hussain Chairman Member Member Member

Mr. Hammad Khalid

Mr. Farid Ahmad

M/s. A.F. Ferguson & Co. Chartered Accountants

M/s. Khalid Anwer & Co. Advocates & Legal

MCB Building, 15-Main Gulberg,

Jail Road, Lahore, Pakistan.

M/s. THK Associates (Pvt.) Limited

Member Member Member

Mr. Shoaib Mumtaz also serves as Chairman Board of

Retail Compliance &

Legal Affairs Group Risk Management Group

Operations Group Human Resources Management Group

Capital Markets Special Assets Special Assets

Consumer & Digital

Treasury & Forex

Mian Mohammad Mansha

flection, self-improvement and evolution, be it in our products and services, our