Mashreq Bank Pakistan Limited (“MBPL” or the "Bank") was incorporated in Pakistan on July 5, 2023, as an unlisted public limited company under the Companies Act, 2017. The principal line of business of the Bank is to operate as a Digital Bank licensed under Section 27 of the Banking Companies Ordinance, 1962, read with the Licensing and Regulatory Framework for Digital Banks issued by the State Bank of Pakistan.

The Bank received a No Objection Certificate (NOC) from the State Bank of Pakistan (SBP) on January 13, 2023, and subsequently obtained In-principle approval (IPA) on September 20, 2023, under the SBP’s Licensing and Regulatory Framework for Digital Banks. Later, in December 2024, the SBP issued a restricted banking license to the Bank for pilot operations as a Digital Retail Bank (DRB). Upon successful completion of the pilot phase and fulfillment of all regulatory requirements, the Bank was granted scheduled bank status by the SBP on September 15, 2025, and subsequently launched its full-service digital retail banking operations. The Bank is operating through the head office and its three other offices in Karachi, Islamabad, and Lahore as of Sep'25. The registered office of the Bank is situated at 22-C, Ittehad Lane- 8, Ittehad Commercial, Phase VI, DHA, Karachi, Pakistan.

The Bank would be operating under two segments: (a) Mashreq NEO and (b) Mashreq NEOBiz. Mashreq NEO caters to individual customers, providing digital accounts, high-yield savings, current accounts, NRP accounts, and competitive fixed deposits. These services are designed to simplify access to financial tools for small businesses and entrepreneurs through an entirely digital experience. Mashreq NEOBiz, expected to be launched in the coming months, will be Pakistan’s first fully digital banking solution for entrepreneurs and business owners, delivering secure, seamless financial services through a single integrated platform. With the commercial launch, the Bank has also expanded its platform to include a wider range of retail-focused digital services, reinforcing its commitment to innovation and customer convenience. The Bank's long-term strategic vision continues to center on digital innovation, financial inclusion, and the delivery of scalable, customer-centric banking solutions tailored to the evolving needs of Pakistan’s digital economy.

Mashreq Bank Pakistan Limited is a wholly owned subsidiary of Mashreq Bank P.S.C., UAE ("Mashreq P.S.C." or the "Parent Bank"), a leading financial institution headquartered in the United Arab Emirates and listed on the Dubai Financial Market. This ownership structure enables the Bank to leverage the strategic, technological, and financial strengths of the Parent Bank while operating independently under Pakistan’s regulatory environment.

Mashreq Bank P.S.C., UAE, is one of the most resilient financial institutions in the Middle East, backed by a strong legacy since its establishment in 1967. Mashreq P.S.C. is predominantly owned by Saif Al Ghurair Investment Group (41.75%), Abdullah Ahmed Al Ghurair Investment Company (31.10%), and Masar Investment Limited (12.75%). As the oldest privately owned bank in the UAE, it has consistently demonstrated financial stability, operational excellence, and a customer-centric philosophy. Supported by a solid capital base, prudent risk management, and a diversified business portfolio spanning corporate, retail, treasury, and international operations. These strengths provide a stable foundation for its strategic expansion into Pakistan through Mashreq Bank Pakistan Limited, reflecting its commitment to innovation and financial inclusion in emerging markets. Mashreq P.S.C. holds strong credit ratings A, A, and A3 from Fitch, S&P, and Moody’s, respectively.

Mashreq P.S.C. showcases strong business acumen through its strategic focus on innovation, digital banking, and market diversification. Its early adoption of technology, consistent profitability, and expansion into key global markets reflect a deep understanding of evolving financial trends and customer needs, positioning it as a forward-looking and agile institution.

Mashreq Bank P.S.C.’s financial strength is evident from its solid capital base and consistent profitability. As of 9MFY25, the Parent Bank reported a net profit of AED 5.2 billion and maintained a strong Capital Adequacy Ratio (CAR) of 16.8%, including a Common Equity Tier 1 (CET1) ratio of 14.2%, along with a low Non-Performing Loan (NPL) ratio of 1.1%. Total assets stood at AED 305 billion, supported by robust lending activity, expanding client relationships, and growing contributions from international markets. Shareholders’ equity amounted to AED 37.8 billion (~PKR 3 trillion), is far more than the combined equity of major banks in Pakistan. These indicators highlight the Parent Bank’s strong capacity to absorb financial shocks while supporting the growth of its subsidiaries. Backed by strong credit ratings and a diversified revenue base, Mashreq P.S.C. continues to demonstrate financial resilience and long-term stability across economic cycles.

Overall control of the Bank rests with a nine-member Board of Directors (Board), which includes the CEO as the executive director, three independent directors, and five non-executive directors, including the Chairperson.

Mr. Fernando Morillo – Chairperson of the Board, brings over three decades of global banking expertise. As the current Group Head of Retail Banking at Mashreq Bank P.S.C., Mr. Fernando leverages his extensive background in developing retail banking strategies. His prior roles at Standard Chartered, BBVA, and McKinsey have equipped him with a deep understanding of both operational excellence and strategic vision in diverse banking environments, essential for leading the digital initiatives in the MBPL. His academic background includes a Bachelor of Science (B.S.) in Aeronautical Engineering, a Master of Business Administration (MBA) from Instituto de Empresa, and completion of the General Management Program at Harvard Business School. Mr. Mohamad Salah Abdel Hamid Abdel Razek – Non-Executive Director, is currently working at Mashreq Bank P.S.C. as Group Chief Information Officer. With 27 years of experience in the information technology sector, Mr. Salah has a profound background in leading IT operations within multinational corporations, including Standard Chartered Bank. His experience in harnessing technology solutions for banking innovations has well-positioned him to contribute to the strategic development of MBPL’s digital banking capabilities. Ms. Rania Nerhal – Non-Executive Director, currently serves as Group Head, Client Experience & Conduct at Mashreq Bank P.S.C. Since joining the Bank in 2012, she has continuously contributed to enhancing customer engagement and service standards. With a total experience of 17 years, her career includes significant roles at prominent institutions such as HSBC, Al Ahli Bank of Kuwait, Commercial Bank of Dubai, and Egyptian American Bank. Her experience makes her exceptionally skilled at shaping the strategies that advance user experience in the evolving landscape of digital banking. Mr. Iqbal Hassan Khanyari – Non-Executive Director, is currently working as Head of Islamic Banking Origination at Mashreq Bank P.S.C. He has 32 years of banking experience and has held several leadership positions at Mashreq Bank. Mr. Iqbal holds a CFA, an MBA in Finance, and a B.Sc. in Electronics. Mr. Salman Hadi – Non-Executive Director, brings 20 years of experience in the financial sector and currently serves as Group Head, Treasury and Global Markets at Mashreq Bank P.S.C. He has also held senior roles at Abu Dhabi Commercial Bank and Emirates NBD, with expertise in treasury, capital markets, and global financial strategies. Mr. Shazad Dada – Independent Director, distinguished banking leader with over 30 years of international experience. He has served as President & CEO of UBL and Standard Chartered Bank (Pakistan) Limited, and earlier as Managing Director at Barclays Pakistan and Deutsche Bank. His background combines strategic leadership with deep financial acumen, supported by an MBA in Finance from The Wharton School. Mr. Rashid Ali Khan – Independent Director, brings 27 years of leadership and entrepreneurial experience, currently serving as Chairperson of Nayatel and founder of Sukh Chayn. His career reflects innovation and business development, supported by prior senior-level experience at HBL. His blend of telecom and financial expertise positions him strongly in technology-driven banking strategies. Mr. Syed Naseer ul Hasan – Independent Director, is currently the CEO of Idenfo with 27+ years of retail banking experience across Standard Chartered, Barclays, and Citibank. He has a strong track record in managing large-scale banking operations, implementing digital solutions, and driving customer-focused strategies. His fintech leadership equips him to guide digital transformation and innovation in modern banking.

The Board of MBPL brings together extensive experience in banking, finance, technology, digital transformation, and client service. This diverse expertise supports the Bank’s strategic direction, ensuring sound governance and continuous evaluation of management performance against operational and growth objectives. The Board has four committees: (i) Digital, IT, and Information Security Committee, (ii) Audit Committee, (iii) Human Resource & Remuneration Committee, and (iv) Risk Management & Credit Committee.

The Audit Committee assists the Board in overseeing financial integrity, internal controls, and audit functions. Its key responsibilities include ensuring the accuracy and transparency of financial statements, reviewing accounting policies, and supervising internal and external audit processes. The Committee also evaluates auditor independence, approves audit plans (including Shariah audits), ensures compliance with regulatory and Shariah requirements, and monitors the effectiveness of the Bank’s whistleblowing mechanism. M/s. A.F. Ferguson & Co., Chartered Accountants, classified in category 'A' by SBP and having a satisfactory QCR rating, are the external auditors for the Bank. They expressed an unqualified opinion on the financial statement for the year ended 31st December 2024.

The Bank comprises sixteen departments, each led by a department head, with fourteen reporting directly to the CEO, while the Chief Risk Officer, along with the Head of Internal Audit, report to their respective Board committees. The structure is supported by a seasoned senior management team bringing extensive industry experience and expertise.

Mr. Muhammad Hamayun Sajjad - Chief Executive Officer, is recognized as one of Asia’s top 100 Fintech leaders. Mr. Hamayun has an impressive 24 years of experience, including leading the Digital Banking Group at the National Bank of Pakistan and United Bank Limited. Mr. Hamayun is a highly qualified professional with a specialization in Design Thinking from MIT and holds an MBA in Marketing and a bachelor’s degree in computer science. His expertise in digital transformation and innovation has also been acknowledged through his appointment as an Independent Director at 1LINK (Pvt.) Ltd., reflecting his significant contribution to strengthening Pakistan’s digital financial infrastructure. Mr. Atif Saeed Dar – Chief Financial Officer, is a seasoned finance professional and a Fellow Chartered Accountant with over 25 years of experience in local and multinational banks. He has previously served as Head of Finance – International at Habib Bank Limited, overseeing global finance operations, and as Finance Head – Pakistan at Barclays Bank. His extensive expertise in financial management and leadership across diverse markets positions him well to lead the Bank’s finance function and support its strategic objectives. Mr. Nauman Muzaffar – Chief Risk Officer, is a seasoned risk management professional with over two decades of experience spanning risk governance, digital banking, and capital markets. Before joining Mashreq, he held key roles at J.P. Morgan Canada, National Bank of Pakistan, and Habib Bank Limited. His expertise in credit risk, enterprise risk management, fraud risk oversight, and capital structure advisory enables him to strengthen the Bank’s risk framework and support sustainable growth. He holds an MBA from Lahore University of Management Sciences (LUMS) and a Bachelor of Science from the University of Utah, USA. Mr. Shams ul Haq Niaz – Chief Digital Officer & Head of Payments, has over 16 years of experience in the Financial Services industry across Pakistan and the UAE, specializing in Digital Payments and Product Development. This marks his second tenure at Mashreq, where he previously spent 4 years in the Digital Payments team. He has also led Digital Payments at Easypaisa and headed Acceptance & Branchless Products at MCB Bank. Shamsul Haq holds an MBA from INSEAD, France, and a B.Sc. in Computer Science from LUMS. Mr. Muhammad Faraz Khan – Chief Compliance Officer, is Fellow Chartered Accountant from ICAP and has over 22 years of experience in operational risk, governance and internal controls. Mr. Khurram Abid – CIO – Head of Technology and Operations, has over 20 years of experience in in information teachnology in major commercial banks of Pakistan.

Mashreq Bank Pakistan Limited has the following six management committees to effectively manage and oversee operations, details of which are as follows:  1) Digital, Technology & Information Security Steering Committee, 2) Asset Liability Committee, 3) Enterprise Risk Committee, 4) Compliance Risk Management Committee, 5) Client Experience Committee, 6) Executive Management Committee.

Mashreq Bank Pakistan employs a sophisticated MIS infrastructure to support its digital-banking operations, anchored by the globally recognised Oracle FLEXCUBE core-banking platform, which enables real-time processing, scalability, and seamless integration across retail, corporate, and Islamic banking segments. Mashreq Bank Pakistan Limited has recently launched its mobile banking application, offering a user-centric interface with advanced digital onboarding, instant real-time fund transfers, debit-card issuance, and bill payments covering more than 4,000 billers. Designed to enhance customer convenience and promote 24/7 self-service banking, the app is backed by AI-driven risk controls, no-fee ATM withdrawals across a network of 19,000+ ATMs, and strengthens the Bank’s digital presence in line with its technology-led growth strategy.

The Bank has adopted a comprehensive risk management framework aligned with the SBP’s regulatory requirements for digital banks and global best practices. Risk governance at MBPL is overseen by an experienced Board, which monitors strategic exposures and evaluates compliance readiness. As part of SBP’s Digital Bank Licensing Framework, MBPL is required to implement robust controls around cybersecurity, operational resilience, and audit systems. In line with these requirements, MBPL has developed strong internal audit, compliance, and operational risk structures during its pilot and commercial phases, including functions to assess and mitigate risks proactively. The Bank employs advanced digital infrastructure encompassing secure onboarding, transaction monitoring, and fraud detection frameworks to ensure effective management of operational and cyber risks. These measures are underpinned by Mashreq Bank P.S.C.'s global risk governance standards, enabling MBPL to maintain strong regulatory compliance and operational resilience since the commencement of its commercial operations.

In January 2023, the State Bank of Pakistan issued No Objection Certificates (NoCs) to five applicants: Easypaisa, HugoBank Limited, Buraq Bank, Mashreq Bank Pakistan Limited, and Raqami Islamic Digital Bank Limited. These institutions were subsequently granted In-principle Approval (IPA) in September 2023 to begin preparations for operational readiness, marking a significant step toward the development of digital banking in Pakistan. By December 2024, Mashreq Bank Pakistan Limited received a restricted license from the SBP to initiate pilot operations as a digital retail bank. Easypaisa, with its operational history and well-designed business strategy, was exempted from pilot testing requirements and restrictions on limited deposit-taking. It was granted a full Digital Retail Bank license in January 2025. As the digital banking ecosystem evolves, traditional commercial banks are also transforming by embracing digital technologies, forging partnerships with fintech companies, and prioritizing customer experience. They are increasingly leveraging digital platforms to broaden their reach, boost operational efficiency, and offer more competitive financial solutions, allowing them to effectively compete with emerging digital banks. Looking ahead, key challenges will include safeguarding customer data, maintaining adequate liquidity to meet digital demand, and ensuring compliance with rapidly evolving regulatory requirements.

Mashreq Bank Pakistan Limited was awarded a DRB license on September 15, 2025, under Pakistan’s Digital Banks Framework 2022, reflecting its commitment to digital innovation and financial inclusion. Backed by the strength and expertise of Mashreq Bank P.S.C., MBPL’s entry into the Pakistani market marks a pivotal step in shaping the country’s digital banking future, positioning it as a key player in delivering next-generation financial services to underserved and tech-savvy customer segments.

During 9MFY25, the markup income of the Bank stood at PKR 528mln (9MFY24: PKR 3mln) due to higher earnings from investments. However, markup expenses stood at PKR 41.3mln. Consequently, the net markup income was reported at PKR 487mln (9MFY24: PKR 3mln).

In 9MFY25, the non-markup income stood at PKR -19.1mln (9MFY24: PKR 12mln), mainly due to the negative foreign exchange income, which stood at PKR -19.4mln (9MFY24: PKR 12mln). However, non-markup expenses stood at PKR 3,680mln (9MFY24: PKR 1,781mln). The Loss After Taxation of the Bank was reported at PKR -3,215mln (9MFY24: PKR 1,766mln), primarily attributed to the initial essential costs incurred to set up the business.

Mashreq Bank Pakistan Limited is set to reshape digital banking in Pakistan. Backed by Mashreq Bank P.S.C.’s global strength and innovation focus, MBPL is building a secure, inclusive digital platform offering products like business accounts, Islamic financing, and SME solutions through NEOBiz. The Bank aims to drive financial inclusion and digital transformation across Pakistan.

MBPL has established a comprehensive credit risk management framework overseen by its Credit Policy and Fraud Risk Management Unit, which will ensure prudent lending practices, effective monitoring, and compliance with regulatory standards. Credit risk will primarily arise from exposures to individuals, SMEs, and financial institutions, with potential losses stemming from customer defaults or deterioration in credit quality. The Bank’s framework emphasizes defined risk appetite, robust credit approval processes, portfolio monitoring, and early identification of emerging risks to maintain a sound credit portfolio. As part of the Bank's strategy, lending operations will commence once a significant deposit base is established.

The Bank has implemented a structured market risk management framework to identify, measure, monitor, and control exposures arising from interest rate, foreign exchange, and other market movements. The Market Risk Unit operates independently, overseeing treasury activities, establishing exposure limits, and ensuring alignment with the Bank’s approved risk appetite. Standardized methodologies—such as notional and sensitivity-based limits—are applied to manage potential market volatility and protect the investment portfolio. In line with the Group’s Investment Policy Framework, the portfolio is managed in accordance with liquidity requirements, ALM strategies, and balance sheet objectives. At present, the investment book comprises solely short-term Federal Government securities, resulting in minimal market risk exposure.

As part of its business strategy, the Bank will initially focus on deposit mobilization through both Islamic and conventional products, targeting salaried individuals, self-employed professionals, housewives, and high-net-worth clients. By leveraging its branchless digital model, the Bank expects to maintain a cost advantage relative to peers in the same segment, enabling it to offer competitive deposit rates. The Bank’s Asset Liability Committee (ALCO) oversees the asset-liability management (ALM) function, monitoring the Bank’s ALM strategy with particular emphasis on managing interest rate, exchange rate, and liquidity risks. While aiming to optimize profitability, ALCO ensures that adequate liquidity is maintained to meet the Bank’s funding obligations. The High-Quality Liquid Assets (HQLA) to Total Net Cash Outflows ratio for the next 30 calendar days must be maintained at a minimum of 100% or as otherwise determined by ALCO. Currently, the ratio remains above 100%, indicating strong liquidity buffers.

The Parent Bank initially injected equity of PKR 5.5bln in Sep'24, followed by additional capital infusions of approximately PKR 1bln in Mar'25, PKR 2bln in Jun'25, and PKR 1bln in Sep'25, bringing the total share capital to around PKR 9.4bln. As of end-Sep25, after accounting for accumulated losses of PKR -6.9bln, the Bank’s equity base stood at PKR 2.5bln (end-Dec24: PKR 1.7bln). While the Capital Adequacy Ratio (CAR) was reported at 58%, with Tier-1 CAR at 57.8%. These capital injections align with the Minimum Capital Requirement and are guided by the Board-approved capital plan, with further injections scheduled in the coming years.