BankIslami Pakistan Limited (“BIPL” or the “Bank”), established in October 2004. It was the first Bank to receive Islamic Banking License under Islamic Banking Policy of 2003 on March 31, 2025. The Bank, after being declared a scheduled Islamic Bank by the State Bank of Pakistan in March 2005, commenced its operations on April 07, 2006. 

The Bank was founded with the vision of becoming the leading provider of authentic Islamic banking in Pakistan. Its mission is to save humanity from Riba by offering Shariah-compliant, customer-centric, innovative financial solutions and creating value for our stakeholders, while upholding social responsibility and transparency.

As at December 31, 2025, the Bank operates through 569 branches (including sub-branches) nationwide (CY24: 540 branches). The Bank is engaged in corporate, commercial, consumer, retail banking, and investment activities by offering a wide range of shariah-compliant products and services. During the year, the Bank has incorporated BIPL Exchange Company (Private) Limited (or the "Company") as a wholly owned subsidiary of the Bank to provide foreign exchange services.

BankIslami Pakistan Limited is a subsidiary of JS Bank Limited (JSBL) with 75.12% shareholding. JSBL is part of the JS Group. Further, Mr. Ali Hussain beneficially holds a 12.53% stake in BIPL, while the remaining shares are widely held by the general public. BIPL’s ownership is backed by the strong sponsorship of the JS Group — a well-renowned business group engaged in a diverse set of activities with a strategic focus on the financial sector including asset management, financial advisory, commodities trading, brokerage, insurance, and banking.

BIPL ownership is backed by strong sponsorship i.e. JS Group (or the "Group") and it is expected to remain the same in the foreseeable future. The Group has demonstrated continued strategic commitment toward expanding the Bank’s market position, strengthening its digital franchise, and enhancing its consolidated banking platform. The acquisition of majority control in BankIslami Pakistan Limited materially strengthened the Group’s consolidated banking presence and diversified its exposure across both conventional and Islamic banking segments. The strategic integration continues to support growth momentum, franchise strength, and market visibility.  

The sponsors demonstrate strong business acumen, underpinned by their well-diversified business interests across various sectors and their longstanding presence and active engagement in the financial and capital markets. This depth of experience reflects their strategic insight, financial discipline, and ability to navigate market dynamics effectively. 

The Group has demonstrated both the capacity and the willingness to extend financial support to the business, if and when required. The JS Group possesses extensive experience across financial services including banking, brokerage, asset management, investment banking, insurance, commodities, and capital markets. The Group’s diversified financial sector exposure, combined with its longstanding market presence, continues to support BIPL’s strategic direction, business diversification initiatives, and operational expansion.

The Board of Directors ("BoD" or the "Board"), elected in an extraordinary general meeting of the Bank held on May 11, 2026, comprises eight members including five independent directors, three non-executive directors. The CEO holds the position of an executive director, representing the management on the Board. The fit and proper test clearance of the Board from the State Bank of Pakistan is yet to be received.

All board members are highly qualified and accomplished professionals, bringing extensive experience and expertise to their roles. Mr. Suleman Lalani is also Group President of Jahangir Siddiqui & Co. Limited. Mr. Lalani is a fellow member of the Institute of Chartered Accountants of Pakistan (ICAP) and has more than 30 years of experience in the financial services sector. Before his elevation to the position of Group President, he served JSCL as its Chief Executive Officer for more than a decade. Prior to joining JSCL, he was Executive Director Finance & Operations and Company Secretary of JS Investments Limited where he also served as CFO and Company Secretary for seven years. He currently serves on the boards of Al-Abbas Sugar Mills Limited, JS Investments Limited, and TRG Pakistan Limited. Mr. Abdur Rahim is a seasoned entrepreneur with vast experience in denim fabrics, garments, mining, energy, and real estate development. He is recognized as a pioneer of Pakistan’s denim industry and currently serves as CEO of Siddiqsons Limited and Siddiqsons Mining Pvt. Ltd., along with directorships across several Siddiqsons Group companies. He is also associated with major real estate projects, including Ocean Tower, and is leading the development of over 15 million square feet of residential and commercial space. He holds a Master’s degree in Finance and Investments from the London School of Business and Finance and has completed executive learning programs from Cambridge and Harvard Business School. Mr. Khalid Aziz Mirza has nearly five decades of diversified experience in investment banking, capital markets, regulatory reform, and academia. He has held senior positions at IFC, served as Chairman of the Securities and Exchange Commission of Pakistan, led financial-sector reform initiatives for the World Bank in East Asia and Pacific, and served as the first Chairman of the Competition Commission of Pakistan. He currently serves on the boards of OLP Financial Services Pakistan Limited and Murree Brewery Company Limited. Mr. Khalilullah Shaikh held senior leadership roles at Pakistan International Airlines, K-Electric, Shell Group, and A.F. Ferguson & Co. He currently serves as an Independent Director and Chairman Audit Committee at Alfalah GHP Investment Management Limited and Dow University of Health Sciences, and also holds directorships in several companies. Ms. Kokab Sadiq Qureshi is a seasoned financial services leader with 25+ years of international banking experience across the Middle East, Saudi Arabia, and the UK. She currently serves as CEO Advisor at Riyad Bank, where she supports strategy, governance, regulatory alignment, and transformation initiatives, contributing to key executive committees. Mr. Sameer Qureshi is a technology executive with over 25 years of experience across semiconductor, mobility technology, software engineering, and artificial intelligence sectors. He has led global teams and large-scale technology initiatives, particularly in bringing innovative solutions from concept to market. His current focus is on integrating advanced artificial intelligence capabilities into personal computing to support next-generation user experiences. Mr. Shahid Hussain Jatoi is a senior legal, taxation, and public-sector professional with more than 35 years of service in key Government of Pakistan institutions. He has served in senior positions at the Federal Board of Revenue, Ministry of Finance and Revenue, Ministry of Production, Establishment Division, Overseas Pakistanis Division, and Federal Investigation Agency. He currently serves on the boards of Al-Abbas Sugar Mills Limited, Service Industries Limited, and Shezan International Limited. Mr. Sulaiman Sadruddin Mehdi is a seasoned executive with over 22 years of experience in real estate development and financial services. He currently serves on the boards of Pakistan Reinsurance Company Limited, Sindh Energy Holding Co. (Private) Limited, Lucky Motors Corporation Limited, Lucky Landmark (Pvt.) Limited and Agha Khan Cultural Services Limited. He has also served as the Independent Chairman of State Life Insurance Corporation and has held key leadership roles at TPL Developments, Cyan Limited, and the Pakistan Stock Exchange. His expertise spans investments, M&A, corporate governance, and strategic transformation across multiple sectors.

Whereas, BIPL’s Shariah board comprises four leading Islamic scholars of the Country, namely (i) Mufti Irshad Ahmad Aijaz, (ii) Mufti Javed Ahmad, (iii) Mufti Muhammad Husain, and (iv) Mufti Syed Hussain Ahmad. The Bank comprises exceptionally qualified and seasoned professionals, whose extensive expertise in the financial sector is anticipated to significantly contribute to the strategic direction and execution of BIPL’s initiatives.

The BoD exercises close monitoring of the management’s policies and governs the Bank’s operations through its four committees namely (i) Audit Committee, (ii) Human Resource & Remuneration Committee, (iii) Risk Management Committee, and (iv) IT Committee. The Board members’ attendance and participation are considered good and effective.

The Bank’s audit function plays a key role in the financial reporting and governance framework by conducting comprehensive reviews of the annual and interim financial statements prior to their approval by the Board. The review process focuses on significant judgmental areas, material audit adjustments, the appropriateness of the going concern assumption, and any changes in accounting policies and practices. It also assesses compliance with applicable accounting standards, regulatory requirements, and other relevant statutory obligations, thereby supporting the integrity, accuracy, and transparency of the Bank’s financial reporting process. M/s KPMG Taseer Hadi & Co., Chartered Accountants,  the external auditors of the Bank for the year 2025 had expressed an unqualified opinion for the financial statements for the year ended on December 31, 2025. M/s. BDO Ebrahim & Co. Chartered Accountants have been appointed as external auditors for the year ending December 31, 2026.

BIPL’s organizational structure is divided into fourteen functional departments i) Distribution, ii) Corporate Banking, iii) Consumer, iv) Treasury/ FIs, v) Risk Management, vi) Product and Shariah Structuring, vii) Human Resource, viii) Legal, ix) Finance, x) Operations, xi) Security and Govt. Relations, xii) IT, xiii) Internal Audit xiv) Compliance and xv) Corporate Affairs. All department heads have significant relevant professional experience and report to the CEO and Deputy CEO. The Bank also has an internal audit department, reporting directly to the Board’s Audit Committee.

The senior management team comprises seasoned professionals with diverse and extensive experience across various segments of the financial services industry. Mr. Rizwan Ata - CEO & President of BIPL, is a seasoned banker with over 32 years of rich experience in financial sector including over 17 years of experience in Islamic Banking industry. He has joined BIPL on January 01, 2019. Previously, he was Group Head - Islamic Banking at Bank Alfalah Limited. He has also worked in different managerial positions at Lahore, Faisalabad, Sialkot & Multan while working with Emirates Bank International PJSC. Mr. Imran Haleem Shaikh - Deputy CEO is a highly experienced professional with over 18 years of experience in the financial sector. His expertise has been instrumental in shaping the success of various organizations, most recently at JS Bank where he served as the Chief Operating Officer. Mr. Sohail Sikander - Chief Operating Officer is serving in BankIslami Pakistan Limited since 2016. Prior to joining BIPL, he has served as Chief Financial Officer at Burj Bank Limited and Dawood Family Takaful Limited. Mr. Syed Majid Ali – Chief Financial Officer brings more than 36 years of accomplished experience in the banking and financial services sector. His professional journey includes senior leadership roles in accounting and finance domain at reputable Institutions such as Emirates Bank, KPMG, Saudi Pak Bank, and Faysal Bank. He is a fellow member of the Institute of Chartered Accountants of Pakistan. Mr. Hasan Shahid - Company Secretary has over 20 years of diversified experience in financial sector. Prior to joining BankIslami, he was associated with JS Bank Limited, where he worked on various senior positions with his last assignment their being of Company Secretary & Head of Legal. He has also worked with Jahangir Siddiqui and Co. limited and with Grant Thornton Anjum Rahman Chartered Accountants. Mr. Sajjad Hussain Qureshi - Chief Risk Officer is a seasoned banking professional with over 24 years of experience in risk management, credit administration, and consumer risk. He has a strong background in implementing automation and control procedures to enhance regulatory compliance. Before joining BankIslami, he held significant leadership roles at JS Bank, Bank Makramah, and Samba Bank Limited. Mr. Anjum Amin Siddiqui - Chief Compliance Officer has over 31 years of exemplary leadership in the banking sector. He has diversified experience of Regulatory Supervision, Commercial Bank Internal Audit & Compliance at prestigious institutions including the State Bank of Pakistan, Saudi Pak Commercial Bank, KASB Bank, UBL and Habib Metropolitan Bank. He holds a Master's degree in Statistics from Karachi University.

The Bank operates with a streamlined organizational framework, where experienced senior management leads each functional area and/or unit. This structure incorporates essential segregation of duties, ensuring a robust control environment. The Bank has eight committees at the management level: (i) Business Strategy & Review Committee (BSRC), (ii) Compliance & Controls Committee (CCM), (iii) Information Technology Steering Committee (ITSC), (iv) Asset and Liability Committee (ALCO), (v) Management Credit Committee (MCC), (vi) Service Excellence Committee (SEC), (vii) Procurement & Disposal Committee (PDC) & (viii) Disciplinary Action Committee (DAC). 

BankIslami has continued to strengthen its Management Information Systems (MIS) framework to support informed decision-making, operational efficiency, and effective risk oversight across the institution. The Bank leverages technology-driven reporting and analytics capabilities to provide timely, accurate, and comprehensive information to management and the Board. The Bank operates using a comprehensive Islamic Banking application that has inbuilt Shariah compliance features – iMal, a core banking software. The Bank launched its digital mobile application, branded as 'AIK', offering a comprehensive suite of financial services that closely mirrors the functionality of the Parent Bank's app, 'Zindagi'. Digital penetration showed notable growth, with mobile app users increasing to 454.5 thousand (CY24: 320.9 thousand), digital transactions rising to 55.6 million (CY24: 44.6 million), and debit card holders reaching 700.3 thousand (CY24: 652.7 thousand). Recently, BIPL has launched FOCUS (Finance Origination & Credit Underwriting System), a fully in-house developed, AI-enabled platform designed to automate and standardize the Bank’s financing origination and credit underwriting processes. The platform digitizes the entire financing lifecycle, from application initiation to disbursement, enhancing operational efficiency, improving the consistency and quality of credit decisions, and significantly reducing turnaround times. Developed by the Bank’s internal technology and business teams, FOCUS reflects BankIslami’s continued commitment to digital transformation, operational excellence, and customer-centric innovation while strengthening its risk management and underwriting framework.

The internal Risk Rating Module is being used by the BankIslami Pakistan Limited. The module supports the Bank in its Obligor Risk Rating (ORR) process by adding more objectivity to the credit appraisal process. The Bank has assigned a to 79% of its obligors under "Good and above" credit risk rating , while another 15% fall under the "Marginal and above" category. Approximately 1% of obligors are rated under "Overdue but not Classified and above," and 5% are categorized under "Loss and above."

During CY25, Pakistan’s banking sector’s total assets grew by approximately 17.8% YoY, while investments surged by ~31.1% to PKR ~39.1trln (CY24: PKR ~29.8trln). Net advances of the sector declined by ~6% to PKR ~14.9trln (CY24: PKR ~15.8trln). Non-Performing Loans (NPLs) decreased by 9.7% YoY to PKR ~964bln (CY24: PKR ~1,068bln). The Capital Adequacy Ratio (CAR) averaged 20.8% (CY24: 20.6%), slightly below historical averages due to higher risk-weighted assets and a shift toward low-yield government securities, yet capitalization remains adequate to absorb potential shocks. While the Advances to Deposit Ratio (ADR) was reported at 37.5% (CY24: 49.7%), which appears higher relative to declining advances, because deposit growth outpaced lending activity. This reflects a cautious lending stance by banks in a challenging macroeconomic environment, where risk-averse behavior and liquidity accumulation resulted in slower credit deployment, pushing the ADR downwards. In a lower policy rate environment, coupled with high operating costs and reduced lending, the sector faced margin pressure, leading to moderated profitability by end-CY25, despite robust capitalization and improving asset quality. (Source: SBP Compendium). 

BIPL continued to maintain its market position at 2% during CY25 (CY24: ~2%). The Bank’s deposit base grew by 18.1% to PKR 660.2bln at end of CY25 (CY24: PKR 559.2bln), supported by expansion in its customer franchise and branch network. The Bank maintained a diversified funding profile, underpinned by a growing customer base, reflected in the increase in the number of accounts to 1.82mln (CY24: 1.57mln). BIPL further expanded its distribution footprint reinforcing its position within the Islamic banking industry.

BankIslami’s profitability declined during CY25, primarily reflecting the impact of a lower interest rate environment, which exerted pressure on the Bank’s core earning capacity and compressed spreads. Additionally, the Bank continued to undertake strategic investments in its franchise, including acquisition of a landmark 32-storey commercial tower in Karachi, branch expansion, digital transformation initiatives, and human capital development, which increased operating expenses during the year. The Bank’s ability to contain credit risk costs and generate recurring non-markup income provided resilience to its profitability profile. During CY25, BIPL's profit earned declined 34% to PKR 74.2bln (CY24: PKR 112.8bln), driven by the sharp decline in monetary policy rate. Simultaneously, profit expensed declined 42% to PKR 38.6bln (CY24: PKR 66.4bln), as CASA-funded liabilities repriced faster. The net spread consequently contracted 23% to PKR 35.7bln (CY24: PKR 46.4bln). The asset yield of the Bank declined from 18.8% (CY24) to 11.6% in CY25, while the cost of funds improved from ~10.7% to ~5.8%, resulting in a spread of ~5.8% at the end of CY25.

The Bank's non-markup income surged 107% to PKR 9.5bln (CY24: PKR 4.6bln), driven primarily by gains on sale of securities (PKR 4.2bln vs PKR 0.7bln), fee and commission income (PKR 3.4bln from PKR 2.3bln), and dividend income (PKR 254mln from PKR 67mln). This diversification in non-markup income is a positive structural development and partially offset the NIM compression. In CY25, total income declined to PKR 45.2bln (CY24: PKR 51.0bln). Operating expenses surged to PKR 31.8bln (CY24: PKR 22.7bln), driven by branch network expansion, IT infrastructure investments (AIK, T-24 migration), and general inflation in operating costs. Operating profit before tax and provisions contracted to PKR 13.3bln (CY24: PKR 28.3bln). Provisions reversed by PKR 632mln (CY24: charge of PKR 2.7bln), reflecting improved asset quality. Consequently, profit after tax fell to PKR 6.0bln (CY24: PKR 11.8bln).

BIPL’s sustainability is further reinforced by its strong Islamic banking franchise, diversified business model, growing digital penetration, and sponsorship support from the JS Group. Going forward, the Bank’s ability to maintain deposit growth, enhance digital adoption, strengthen its low-cost funding base, and preserve asset quality will remain important for sustaining its financial performance and competitive positioning.

At the end of CY25, BIPL's gross advance portfolio stood at PKR 322bln (CY24: PKR 327bln). Sector-wise, textile sectors remained the largest contributors to the advances portfolio amounting to PKR 56bln (CY24: PKR 60bln) followed by services sector advances which increased to PKR 44bln (CY24: PKR 24bln). Segment-wise, the Bank's private sector financing portfolio increased significantly to PKR 19bln at end-Dec’25 (end-Dec’24: PKR 4bln), reflecting enhanced business generation and increased lending activity during the year. The Bank maintained a conservative exposure profile, with no financing exposure to the government/public sector segment as of year-end. The Top 20 Advances to Total Advances concentration stood at 37% (CY24: 28%) primarily due to the new exposure. The net ADR moderated to 44.19% (CY24: 52.94%), reflecting the deposit base growing faster than the financing portfolio. On the asset quality front, non-performing financings (NPLs) improved to PKR 21.9bln (CY24: PKR 24.2bln), reflecting improvement in the Bank’s recovery and credit risk management efforts. The Top 20 NPLs to Total NPLs concentration stood at 55% (CY24: 57%). Sector-wise, with the Textile and individual sectors contributing the largest NPLs at PKR 5.7bln (CY24: PKR 5.7bln) and PKR 3.4bln (CY24: PKR 4.0bln), respectively. Consequently, the infection ratio improved to 6.8% (CY24: 7.4%), indicating enhanced asset quality despite the prevailing macroeconomic challenges. Overall, BankIslami’s credit risk profile remains supported by a stable financing portfolio, improving asset quality indicators, and a strong funding base, although relatively moderate financing deployment continues to constrain balance sheet utilization.

At the end of CY25, BIPL's investment portfolio declined to PKR 322.9bln (CY24: PKR 345.1bln). GoP Ijara Sukuk remained the dominant allocation at 97.5% (CY25: PKR 314.7bln; CY24: PKR 311.0bln). The persistent concentration in government-backed instruments highlights Bank’s conservative and stability-focused investment strategy, balancing yield enhancement with capital preservation amid a changing interest rate environment. Going forward, a rising interest rate environment may exert pressure on the Bank’s investment portfolio through potential mark-to-market losses, particularly on fixed-rate government securities. Such revaluation losses could adversely affect profitability and, consequently, internal capital generation and capital adequacy levels.

BIPL's liquidity profile remains sound. Deposits grew 18% to PKR 660.2bln (CY24: PKR 559.2bln), with the CASA mix improving to 69.8% (CY24: 64.7%); current accounts rose to PKR 277bln and saving deposits rose to PKR 150bln. Term deposits declined marginally to PKR 190bln, indicating a structural shift toward lower-cost, stickier funding. At end of CY25, BankIslami maintained a sound liquidity and funding profile, supported by a stable and growing deposit base. The growth in deposits is reflecting continued franchise expansion and customer acquisition. The Bank’s funding profile remains predominantly deposit-driven, providing a stable source of liquidity to support business growth and operational requirements. The Bank continued to benefit from a broad customer base, with the number of accounts increasing to 1.82mln (end-CY24: 1.57mln). Going forward, BankIslami’s liquidity profile is expected to remain supported by its expanding branch network, growing digital banking platform, and sustained focus on mobilizing low-cost and granular deposits, which should help contain funding costs and support profitability.

At the end of CY25, BIPL's equity stood at PKR 48.6bln (CY24: PKR 48.3bln) with Capital Adequacy Ratio (CAR) declined to 16.55% (CY24: 24.11%) The decline was primarily due to the settlement of long term facility obtained from the SBP, eligible Tier-2 capital, coupled with an increase in risk-weighted assets. These included the acquisition of a landmark 32-storey commercial tower in Clifton, Karachi, acquired as part of the Bank’s strategic expansion to strengthen operational capacity and establish a modern corporate presence. Despite reduction, the CAR remains comfortably above the regulatory minimum requirement, underscoring the Bank’s strong capital position and prudent risk management. To strengthen its capital base, two additional Tier-1 sukuks with a cumulative value of PKR 3.0bln remain in place, providing loss-absorption capacity. Furthermore, the Bank is in the process of issuing an Additional Tier-2 TFC amounting to PKR 5bln to further strengthen its capital base and support future balance sheet growth. These capital instruments have been structured to enhance the Bank’s capital adequacy ratio, providing a buffer for loss absorption and supporting the Bank’s long-term growth and risk management objectives.