Allied Bank Limited ("ABL" or the "Bank"), incorporated as a public limited Company, commenced its operations as a Scheduled Commercial Bank in 1942. The Bank is listed on the Pakistan Stock Exchange.

Allied Bank Limited holds the distinction of being the first Bank established in Pakistan. Originally founded in 1942 in Lahore under the name Australasia Bank, it began operations prior to the country’s independence. Following the nationalization of Banks in 1974, it was merged with three other financial institutions and rebranded as Allied Bank of Pakistan Limited. In August 2004, under the State Bank of Pakistan’s Scheme of Reconstruction, ownership was transferred to a consortium led by the Ibrahim Group. Subsequently, in 2005, the Bank was renamed as Allied Bank Limited under the new management. Since then, the Bank has taken significant growth and is one of the largest Banks in terms of deposit market share as Dec'25. Its head office is located at 3-4 Tipu Block New Garden Town Lahore.

During CY25 ABL operates with 1,535 branches (CY24: 1,510), comprising 1,231 conventional branches, 302 dedicated Islamic Banking branches (CY24: 160), one overseas branch, and one EPZ branch, spread across over 601 cities and towns nationwide. The Bank also operates a vast network of 1,674 ATMs across Pakistan.

Ibrahim Group (IG), through Ibrahim Holdings (Pvt.) Limited owns 90% of shareholding in ABL.

Ownership structure of the Bank is seen stable as no ownership changes are expected in near future. Majority stake will rest with the Ibrahim Holdings. The Ibrahim Group continues to demonstrate strong financial and operational stability, supported by a diversified business portfolio spanning key sectors such as polyester, textiles, energy, and financial services. The Group's longstanding presence in the industry, experienced management, and prudent financial practices contribute to its sustained creditworthiness.

The sponsor's business acumen is assessed as strong. Under the stewardship of the Ibrahim Group, ABL has transformed from a loss-making entity at the time of its recapitalization into one of Pakistan's premier financial institutions, delivering consistent profitability, sound asset quality, and sustained growth over more than two decades. The Group's diversified industrial and financial interests further reinforce its capacity and commitment to support the Bank.

The net worth of the Ibrahim Group is considered very strong, supported by a substantial asset base and a solid financial foundation. The sponsors have consistently demonstrated both the willingness and capacity to support the business, as evidenced by the provision of interest-free loans during critical periods to sustain operations. A key indicator of the Group’s financial strength is its majority ownership (~91.81%) of Ibrahim Fibres Limited a flagship entity engaged in the manufacturing of polyester staple fiber and yarn which significantly contributes to the Group’s revenue generation and overall financial stability.

The governance of Allied Bank Limited is vested in an eight-member Board of Directors (Board), comprising the Chairman, Vice Chairman, two Executive Directors (CEO), one Non-Executive Director, and three Independent Directors. The Board composition includes two female Directors, reflecting a commitment to gender diversity at the governance level, and is fully compliant with the SECP Code of Corporate Governance and SBP's Corporate Governance Regulatory Framework for Banks.

Mr. Mohammad Naeem Mukhtar has been Chairperson of the Board of Directors of the Bank since 2004 and holds an MBA from Cardiff Business School, along with professional qualifications in textiles from the UK. With over 40 years of experience in finance and industrial manufacturing. Mr. Muhammad Waseem Mukhtar is Vice Chairman of the Bank. He has been a non-executive Director on the Bank’s Board since 2004, bringing 28 years of cross sector leadership experience in finance, IT, and industry. He holds MBA (Finance and Strategy) from the University of Chicago and a Master degree in Total Quality Management (TQM) from the University of Glamorgan and also plays a key role in the Bank’s strategic and technological initiatives. Ms. Sarah Naeem serves as an Executive Director and Board Member of the Bank, playing an active role in banking, industrial manufacturing, and strategic transformation initiatives within the Ibrahim Group. She is also a Director of Ibrahim Fibres Limited and contributes to strategy, branding, sustainability, and long-term institutional development across the Group’s industrial and financial services businesses. With academic qualifications from the University of Oxford, Teesside University, and the State University of New York, she brings an internationally informed perspective to the Board, focusing on customer experience, financial inclusion, sustainability, and long-term value creation. Mr. Zafar Iqbal, a Fellow of ICAEW and ICAP, brings 40 years of senior management experience in the financial and power sectors. He has served as MD and CEO of Pak Oman Investment Company, transforming it into a leading development financial institution, He is the member of Board since August 2015. Ms. Nazrat Bashir, a retired Pakistan Administrative Service officer (BPS-22), has over 36 years of diversified civil service experience. She holds master’s degrees in Economics and Psychology and has been serving as an independent director on the Bank’s Board since August 2018. Mr. Muhammad Kamran Shehzad, an independent director, brings over 50 years of extensive experience in banking, finance, and accounting. He has held senior leadership roles at commercial Banks and the State Bank of Pakistan, and currently chairs the Board’s Audit Committee of the Bank. Mian Ikram Ul Haq has over five decades of experience in Banking and finance, having held key roles in prominent financial institutions both in Pakistan and internationally. He holds an MBA in International Business and Finance, a Law graduate, and has served on the boards of Ibrahim Fibres Limited and Industrial Development Bank of Pakistan (IDBP). Mr. Aizid Razzaq Gill, is CEO and seasoned banker with more than 29 years of experience in financial management, risk analysis, and portfolio management. He has held key leadership roles at the Bank, including Chief Risk Officer. He holds multiple advanced degrees and has completed executive programs at MIT, Columbia, and London Business School.

The Board exercises effective oversight of the Bank's strategy, operations, and risk management through five key Board-level sub-committees: i) Audit Committee of the Board (ACOB), ii) Board Risk Management Committee (BRMC), iii) Human Resource & Remuneration Committee (HR&RC) iv) E-Vision Committee and v) Strategic Planning and Monitoring Committee (SPMC). These committees meet regularly and ensure adequate monitoring of critical functional areas including audit, risk, technology, sustainability, and human capital. Board members' attendance and engagement are considered robust and consistent.

M/s KPMG Taseer Hadi & Co. Chartered Accountants, classified in Category ‘A’ by the State Bank of Pakistan (SBP) and holding a satisfactory Quality Control Review (QCR) rating from the Institute of Chartered Accountants of Pakistan (ICAP), served as the external auditors for the year ended December 31, 2025. The auditors expressed an unqualified opinion on the financial statements, indicating that the financial reporting presents a true and fair view in accordance with the applicable financial reporting framework, and that no material misstatements were identified during the audit for the year ended December 31, 2025.

ABL operates through a well-defined organizational framework, with experienced senior management leading each functional group. The Bank's operations are structured across dedicated groups, each responsible for distinct banking functions: i) Corporate & Investment Banking Group (CIBG), ii) Commercial & Retail Banking Group (CRBG), iii) Digital Banking Group (DBG), iv) Islamic Banking Group (IBG), v) Treasury Group, vi) Risk Management Group (RMG), vii) Compliance Group (CG) viii) Human Resource Group (HRG), ix) Banking Services Group (BSG), x) Finance Group (FG), xi) Information Technology Group (ITG), xii) Special Assets Management Group (SAMG), and xiii) General Services and Real Estate Group (GS&RE xiv) Audit & Risk Review Group (A&RRG) xv) Corporate Affairs Group (CAG) xvi) Strategic Planning

Mr. Aizid Razzaq Gill carries more than 29 years of experience in Financial Management, Risk Analysis, and Research and expertise in Portfolio Management of Corporate and Commercial Banking obligors, and has been appointed as CEO since Jan21. He holds multiple advanced degrees and has completed executive programs at MIT, Columbia, and London Business School.The management committees report directly to the Chief Executive Officer and cover key functional areas, including Human Resources, Technology and Digital Transformation, Treasury, Corporate and Investment Banking, General Services and Real Estate, Islamic Banking, Asset Management, Commercial and Retail Banking – North and South, Risk Management, Finance, Compliance, Banking Services, and Corporate Affairs. Ms. Sarah Naeem serves as an Executive Director and Board Member of the Bank, playing an active role in banking, industrial manufacturing, and strategic transformation initiatives within the Ibrahim Group. She is also a Director of Ibrahim Fibres Limited and contributes to strategy, branding, sustainability, and long-term institutional development across the Group’s industrial and financial services businesses. With academic qualifications from the University of Oxford, Teesside University, and the State University of New York, she brings an internationally informed perspective to the Board, focusing on customer experience, financial inclusion, sustainability, and long-term value creation. Mr. Muhammad Atif Mirza, a fellow of the Institute of Chartered Accountants of Pakistan, has over 28 years of experience in audit and finance. He joined Allied Bank Limited in 2016 and currently serves as Chief Financial Officer, overseeing the Finance function. Prior to this, he was a partner at a leading audit firm and has completed leadership and banking training programs. Mr. Moin Khalid serving as Chief Risk Management brings over 27 years of diverse experience in risk analysis, finance, strategic planning, and assurance services. Since joining Allied Bank in 2009, he has held key roles including Head of Budgeting & Strategic Planning, Head of Credit Risk Review, and Head of Enterprise Risk. Prior to this, he served in a senior role at PACRA and is a fellow member of the Institute of Chartered Accountants of Pakistan. Mr. Tariq Mehmood Shahid has over 29 years of diversified experience in commercial and central banking, with more than 19 years at Allied Bank. He is Chief Compliance Officer. He has held key roles in Audit, Compliance, AML, CFT, and investigations. He is a member of the Institute of Cost & Management Accountants Pakistan and holds a Bachelor’s degree in Business/Commerce, along with certifications from Oracle and Microsoft. Mr. Mujahid Ali, Chief Technology and Digital Transformation Officer, brings over 35 years of extensive experience in business process reengineering, IT planning, project management, and systems implementation. Since joining the Bank in 2008 as Chief Information Technology Officer, he has successfully led the transformation of Allied Bank’s conventional banking systems into robust IT platforms. He holds an MBA and previously held key roles with a prominent local group.

The management operates through five committees at the management level including 1) Management Committee (MANCO), 2) Assets & Liabilities Committee (ALCO), 3) Risk Management Committee (RMC), 4) Compliance Committee (CC), 5) Fair Treatment Committee (FTC) 6) Sustainability Committee 7) Anti-Harassment Committee. MANCO is further assisted by Human Resource Committee (HRC) & IT Steering Committee (ITSC). HRC is further assisted by the Central Administrative Action Committee (CAAC).

ABL has implemented the internationally renowned Temenos T24 core banking platform across its entire branch network, ensuring seamless transaction processing and data integrity. Beyond core banking, the Bank utilizes Oracle E-Business Suite for ERP functions, Oracle Financial Services Analytical Applications (OFSAA) for risk analytics, and a robust Data Lake and Business Intelligence infrastructure for enterprise-wide reporting and decision support. In CY25, the Bank deployed Agentic AI, Robotic Process Automation (RPA), and a Denodo Data Virtualization platform to enhance real-time data access and operational efficiency. The Bank also launched Pakistan's first humanoid robot in the banking sector, "Pepper," integrated with ABL's proprietary AI-based Large Language Model (LLM), further underscoring its technology leadership.

ABL's Risk Management Group (RMG) anchors the Bank's risk governance structure, overseeing credit, market, operational, information security, and enterprise risk through a structured three-lines-of-defense framework. The Bank employs an indigenously developed Risk Assessment and Management System (RAMS) for loan processing and portfolio monitoring, complemented by stress testing, early warning systems, and scenario analysis. Environmental and Social Risk Management (ESRM) is integrated into the credit approval process. In CY25, the Bank achieved ISO 27001:2022 certification, obtained PCI DSS certification for the 7th consecutive year, and further strengthened its Security Operations Center (SOC) with advanced threat intelligence and cyber resilience capabilities.

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) Amid this operating environment, ABL sustained a strong balance sheet trajectory during CY25, with deposits expanding by 16% to PKR 2.35 trln (CY24: PKR 2.02 trln) and a CASA mix of 83%. The ADR declined to 34.2% (CY24: 52.8%), reflecting selective credit deployment as net advances contracted by 25% to PKR 790 bln, with surplus liquidity strategically redeployed into the investment portfolio, which surged by 89% to PKR 2.14 trln. Notably, ABL's CAR improved to 27.74% (CY24: 26.71%), positioning the Bank among the highest capitalized institutions in Pakistan's banking sector.

ABL is one of Pakistan's leading private sector commercial banks, with total assets of PKR 3.37 trln (CY24: PKR 2.82 trln) and a deposit market share of approximately 6.1% as of December 31, 2025. The Bank maintained a deposit base of PKR 2.35 trln (CY24: PKR 2.02 trln), reflecting a 16% growth driven by a 21% increase in current account deposits, with customer deposits standing at PKR 2.21 trillion at end-CY25. translating into a market share of 6.1% and CASA mix at 83% (CY24: 86%). The market share of the bank is 6.1%.The customer deposits are 2,21 trln .ABL's Advances-to-Deposit Ratio (ADR) declined to 34.2% (CY24: 52.8%), consistent with the broader industry trend of subdued credit deployment.

In CY25, ABL's total markup income declined by 21% to PKR 297.2 bln (CY24: PKR 376.8 bln), in line with the falling interest rate cycle as the SBP reduced the policy rate from 13% to 10.5% by year-end. Investment-related markup income moderated with the declining yield environment; however, ABL strategically repositioned its balance sheet toward longer-tenor Pakistan Investment Bonds (PIBs) and Treasury Bills, with the investment portfolio surging 89% to PKR 2.14 trln (CY24: PKR 1.13 trln). On the liability side, markup expenses declined sharply by 27% to PKR 192.2 bln (CY24: PKR 261.5 bln), driven by lower cost of deposits and faster repricing of the liability base, generating an improved gross spread ratio of 35.3% (CY24: 30.6%). Non-markup income remained broadly stable at PKR 28.6 billion in CY25 (CY24: PKR 27.9 billion), supported by a 17% increase in fee and commission income to PKR 16.5 billion, reflecting the continued expansion of the Bank's digital and transactional banking franchise. However, profitability from earning assets was impacted by a lower interest rate environment, with the advances yield declining to 10.6% in CY25 from 16.3% in CY24, while the investment yield decreased to 6.6% from 10.4% over the same period.

ABL's total income for CY25 stood at PKR 325.8 bln (CY24: PKR 404.7 bln). Non-markup expenses increased by 16% to PKR 66.9 bln (CY24: PKR 57.9 bln), primarily attributable to higher personnel costs, technology investments, card-related expenses, and branch expansion costs. The cost-to-income ratio rose to 50.1% (CY24: 40.4%), reflecting the impact of declining revenues and continued strategic investments in digital infrastructure. Credit loss reversals amounted to PKR 7.6 bln (CY24: PKR 2.7 bln), providing a notable offset to income pressures. Net profitability declined by 18% to PKR 35.2 bln (CY24: PKR 43.1 bln), reflecting the combined impact of lower markup income in a falling rate cycle, partially mitigated by disciplined liability management, provision reversals, and steady non-markup income growth. Earnings Per Share (EPS) declined to PKR 30.72 (CY24: PKR 37.65), while the Board declared a total cash dividend of PKR 16.00 per share for CY25.

Management envisages continued growth in the deposit base through ongoing optimization of the funding mix, with a focus on expanding low-cost current account deposits. On the asset side, ABL is expected to pursue measured credit expansion in quality lending segments as the interest rate environment stabilizes and economic conditions improve. The Bank's deepening digital platform, expanding Islamic banking franchise, and continued investments in technology and human capital are expected to support non-markup income growth and operational efficiency over the medium term. The progressive transition toward Islamic banking operations, in line with SBP's regulatory directive for full conversion by 2027, is also expected to broaden ABL's addressable market and customer base.

NPLs declined, with the infection ratio standing at 1.42% (CY24: 1.22%) on gross advances of PKR 802 bln (CY24: PKR 1,066 bln) — remaining among the lowest in the industry and materially below the sector average of approximately 6.5%, reflecting ABL's consistently prudent underwriting standards and robust credit evaluation framework. Overall provision coverage, including general provisions, stood at 109.1% (CY24: 115.7%), providing an adequate buffer against residual credit risk. Stage III ECL coverage remained strong, affirming conservative provisioning practices and sound loss-absorption capacity. The ADR stood at 34.2% (CY24: 52.8%), reflecting the Bank's conservative lending posture in a declining interest rate environment. Government securities continued to dominate the investment portfolio, minimizing credit risk within the investment book and reinforcing the overall quality of ABL's balance sheet.

At end-Dec'25, ABL's investment portfolio surged by 89% to PKR 2,137.1 bln (end-Dec'24: PKR 1,129.9 bln), with the increase primarily attributable to a PKR 600.4 bln rise in Pakistan Investment Bonds (PIBs) and a PKR 272.3 bln increase in Market Treasury Bills (T-Bills). Government securities continued to dominate the investment portfolio, reflecting the Bank's conservative investment strategy and deliberate duration positioning to capitalize on the declining interest rate environment. ABL's Treasury Group had correctly anticipated a continued monetary easing stance by the SBP in CY25 and positioned the balance sheet toward longer-tenor fixed-rate instruments, supporting stable accrual income and capital appreciation. This strategic positioning enhanced risk-adjusted returns and supported net interest income, while remaining within approved internal risk parameters. The Bank's return on investments moderated to 1.65% (CY24: 3.82%), reflecting the impact of falling yields in the declining rate environment.

ABL's liquidity profile remains robust and well-managed. At end-Dec'25, the Liquidity Coverage Ratio (LCR) stood at 222.67% (CY24: 199.06%) and the Net Stable Funding Ratio (NSFR) at 158.12%, both comfortably above minimum regulatory requirements, reflecting the Bank's strong short-term and structural liquidity positions. The Bank's deposit base of PKR 2.35 trillion is well diversified across retail, corporate, and institutional customers, supporting funding stability. The CASA ratio of 83% continues to underpin a cost-efficient funding structure, while the top 20 depositors accounted for approximately 20% of total deposits, indicating a manageable depositor concentration profile. Borrowings increased by 39% to PKR 643.7 bln (CY24: PKR 462.0 bln), primarily due to higher Repo borrowings of PKR 148.4 bln, reflecting active liability management in the prevailing liquidity environment. The Bank's ADR stood at 34.2% (CY24: 52.8%), providing significant room for balance sheet deployment as credit demand recovers.

As of end-Dec'25, ABL's Capital Adequacy Ratio (CAR) stood at 27.74% (CY24: 26.71%), with a CET1/Tier-1 ratio of 20.55% (CY24: 19.17%), positioning the Bank among the highest capitalized entities in Pakistan's banking sector and comfortably above SBP's prescribed minimum thresholds. Total equity grew by 12.6% to PKR 263.4 bln (CY24: PKR 233.9 bln), supported by retained earnings and revaluation surpluses. Share capital remained unchanged at PKR 11.5 bln (1,145,073,830 ordinary shares), reflecting capital discipline and earnings-driven equity accretion. The Bank's strong capital position provides significant capacity to absorb potential stress scenarios and support future balance sheet growth, consistent with ABL's long-term strategic objectives.