Bank of Khyber ("BoK" or the "Bank") was established in 1991 under the Bank of Khyber Act, passed by the Provincial Legislative Assembly of the province of Khyber Pakhtunkhwa (KPK). The Bank acquired the status of a scheduled bank in 1994 and is principally engaged in the business of commercial banking and related services.

Initially focused on serving the financial needs of the public sector in Khyber Pakhtunkhwa, BoK has since expanded its services across Pakistan. It offers a broad spectrum of conventional and Islamic banking products and has a growing branch network nationwide, with the Bank actively in the process of full conversion to Islamic banking following its announcement in February 2025. The Bank is listed on the Pakistan Stock Exchange (PSX) and has diversified its offerings to include corporate, retail, treasury, and investment banking. The Bank has its registered office at BOK Tower, 24 - The Mall, Peshawar Cantt. As of end-CY25, the Bank operates with a network of 254 branches including 199 Islamic banking branches and 55 Islamic banking windows (end-CY24: 246 branches including 131 Islamic banking branches), spread across KPK (170), Punjab (41), Islamabad (17), Sindh (16), Baluchistan (7), AJK (2), and Gilgit (1), along with 14 booths nationwide. The Bank is supported by a workforce of 2,113 employees at end-CY25 (end-CY24: 2,219), reflecting ongoing organizational rationalization in line with the Bank's operational efficiency objectives.

Bank of Khyber offers a wide range of services across retail, corporate, SME, agriculture, treasury, and Islamic banking. Its retail products include deposit accounts, financing facilities, and card services, while corporate and investment banking clients benefit from various financing, trade finance, and advisory solutions. BoK announced its full conversion to Islamic banking, initiating a transformative shift aligned with the State Bank of Pakistan's Vision 2028, with the complete transition targeted for the future. As of end-CY25, the Bank operates 199 fully functional Islamic banking branches, converted from 131 at end-CY24, along with 55 Islamic banking windows, offering Shariah-compliant products. During CY25, 59 conventional branches were converted to Islamic banking, bringing the Islamic banking share of the total network to 78%. The Bank also supports home remittance services through its newly launched BOK KorPay brand and has enhanced customer convenience through its digital banking platforms, including the launch of the Mastercard Debit Card during the year.

BoK’s ownership profile is anchored by the Government of Khyber Pakhtunkhwa (GoKP), which maintains a controlling interest of 70.2%. Ismail Industries holds a significant minority stake of 24.4%, with the residual shareholding dispersed among various investors.

BoK benefits from strong public-sector sponsorship through the Government of Khyber Pakhtunkhwa’s (GoKP) majority ownership, which serves as a key pillar of stability. The Government’s involvement provides comfort in terms of governance oversight, regulatory compliance, and the potential availability of support, if required. Such backing also enhances the confidence of depositors, investors, and other stakeholders by reinforcing the Bank’s institutional standing. In addition, the presence of Ismail Industries as a significant long-term shareholder further strengthens the ownership profile. Its continued investment reflects confidence in the Bank’s strategic direction, growth prospects, and financial resilience. As a well-established private-sector group with diversified business operations, Ismail Industries brings additional credibility and commercial perspective to the shareholder base. The combined presence of strong public- and private-sector shareholders is expected to support the continued stability of the Bank’s ownership structure over the foreseeable future.

The business acumen of the key shareholders is evidenced by their support for professional independence and the appointment of a qualified and experienced Board. The Board’s strong skill set and oversight capabilities underpin effective governance and contribute to the Bank’s strategic and operational strength.

BoK benefits from a strong sponsorship framework anchored by the Government of Khyber Pakhtunkhwa (GoKP) and supported by Ismail Industries. The financial strength, institutional standing, and continued commitment of these core shareholders enhance the Bank’s resilience and provide comfort with respect to its credit fundamentals.

The control of the Bank vests with an eight-member Board of Directors (Board), comprising two non-executive directors, five independent directors, and one executive director. Two members represent the Government of Khyber Pakhtunkhwa (GoKP) as non-executive directors, while the Managing Director & Chief Executive Officer (CEO) of the Bank serves as the executive director (included in the eight-member count). The Board includes one female independent director, meeting the female director requirement. The current Board structure meets the minimum board size, independent director, and female director requirements as prescribed under the SECP Code of Corporate Governance.

As of Mar'26, BoK’s Board reflects a well-calibrated mix of expertise and experience. Islam Zaib — Chairman / Non-Executive Director, is a Pakistan Administrative Service (PAS) officer with over 22 years of distinguished service. Appointed as Chairman by virtue of his position as Additional Chief Secretary, GoKP, he brings expertise in public financial management, resource mobilization, donor management, and economic diplomacy. He holds advanced academic qualifications from the University of Syracuse (USA) and the University of Birmingham (UK) under the Chevening Scholarship Programme. Kamran Ahmed Afridi — Non-Executive Director, is a seasoned PAS officer with extensive experience in district administration, public sector development, emergency management, and provincial finance. Appointed as Director by virtue of his position as Secretary Finance, GoKP, he holds a B.Sc degree in Engineering. Syed Asad Ali Shah — Independent Director, is a Chartered Accountant with over 35 years of experience in Pakistan's corporate and financial sector. He has held key roles including Managing Partner at Deloitte Yusuf Adil, President of ICAP, and Chair of the UNCTAD Inter-governmental Working Group on Accounting & Financial Reporting. He currently serves as CEO of Asad Ali Shah Associates and holds FCA and FCMA qualifications. Tahir Jawaid — Independent Director, is an engineer with over 40 years of experience in the Fertilizer, Petrochemical, Power, and HR sectors. He has served as CEO of HPSL and Senior Vice President at HUBCO, and currently serves as Chief Capability Officer at August Leadership. He holds an MS in Industrial Engineering from the University of Houston and a BS in Mechanical Engineering from UET Lahore. Osman Asghar Khan — Independent Director, holds degrees from Brown University and Boston University and is a CPA and Chartered Accountant in multiple jurisdictions. He currently serves as Managing Director of Afiniti Software, Honorary Consul of Ireland in Pakistan, and sits on several boards including Faysal Asset Management and Pakistan Stock Exchange. Muhammed Shahid Sadiq — Independent Director, is a Chartered Accountant from ICAEW with over 40 years of experience in audit, consultancy, and tax in Pakistan and the UK. Formerly a Partner at A.F. Ferguson & Co. and Deloitte Pakistan, he is a certified Director for State Owned Enterprises from PICG. Natasha Jehangir Khan — Independent Director, has over 16 years of experience in financial and power sector regulation, constitutional and administrative law, and corporate transactions. Having worked with the Attorney General's office, SECP, ADB, and JICA, she is a licensed Advocate of the High Courts of Pakistan and founding partner at ARK Advocates & Consultants LLP.

The Board exercises close monitoring of the Bank's operations and management's policies via five sub-committees, namely i) Board Audit Committee (BAC), ii) Board Human Resource & Remuneration Committee (BHR&RC), iii) Board Risk Management Committee (BRMC), iv) Board IT Steering Committee (BITSC), and v) Board Compliance Committee (BCC). During CY25, the Board of Directors convened 6 meetings, while the sub-committees met with varying frequency throughout the year depending on their respective mandates — BAC (7 meetings), BHR&RC (13 meetings), BRMC (5 meetings), BITSC (5 meetings), and BCC (4 meetings). The Board members' attendance and participation are considered good and effective, with the Managing Director & CEO having attended all scheduled meetings across the Board and all five committees during the year.

The Board Audit Committee oversees the internal audit function which includes a review of the annual and interim financial statements of the Bank before their approval by the Board, focusing on major judgmental areas, significant adjustments resulting from the audit, going concern assumption, any changes in accounting policies and practices, compliance with applicable accounting standards, and compliance with applicable regulatory and statutory requirements. M/s. A.F. Ferguson & Co., Chartered Accountants, classified in category 'A' by SBP and having a satisfactory QCR rating, are the external auditors of BoK. They have expressed an unqualified opinion on the financial statements for the year ended December 31, 2025.

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 strong control environment. The Bank's overall functions are currently segregated into fourteen groups and three divisions, each dedicated to distinct banking functions and support services: i) Commercial, SME & Agriculture Finance Group, ii) Digital Banking Group, iii) Finance Group, iv) Internal Audit Group, v) Operations & Support Group, vi) Retail Banking Group, vii) Compliance Group, viii) Corporate & Investment Banking Group, ix) HRD Group, x) IT Group, xi) Strategy & Special Initiatives Group, xii) Treasury & FI Group, xiii) Risk Management Group, xiv) Remedial Asset Management Group, xv) Corporate & Legal Affairs Division, xvi) Information Security Division, and xvii) Marketing Division.

As of Dec'25, the senior management team of Bok comprises seasoned professionals with diverse and extensive experience across various segments of the financial services industry. Irfan Saleem Awan serves as Chief Financial Officer of the Finance Group, bringing over 27 years of experience, including nearly five years in the current role. Muhammad Fawad Saddozai — Group Head, Remedial Assets Management, has over 36 years of banking experience. Nauman Zafar — Group Head, Corporate & Investment Banking (additionally holding charge of Commercial, SME & Agricultural Finance Group), brings over 33 years of experience. Salman Ahmed Usmani — Group Head, Treasury & FI Group, has over 38 years of experience. Abdullah Ghaffar — Group Head, Retail Banking Group, brings over 38 years of banking experience. Amin Sajid — Group Head, Operations & Support (additionally holding charge of Strategy & Special Initiatives Group), has over 33 years of experience. Mudassar Iqbal — Chief Risk Officer, Risk Management Group, brings over 25 years of experience in risk management. Muhammad Asif — Group Head, Human Resource Development, has over 25 years of experience, including over five years in the current role. Basharat Khan — Chief Compliance Officer, Compliance Group, brings nearly 20 years of banking experience. Shaikh Mashhood ur Rehman — Officiating Group Head, Digital Banking Group, has over 32 years of experience. Rashid Zaman Khan — Chief Information Officer, Information Technology Group, brings over 29 years of experience in IT strategy and digital transformation. Raza Mohsin Qizilbash — Company Secretary & Divisional Head, Corporate & Legal Affairs Division, has over 36 years of experience. Muhammad Salah Uddin Arif — Chief Internal Auditor, Internal Audit Group, brings over 25 years of experience in finance and audit. Qazi Abdul Samad — Resident Shariah Board Member, has been affiliated with the Bank for over 20 years since 2005. Fauziah Mehmood — Head, Marketing Division, brings over 15 years of experience. Manzar Habib — Chief Information Security Officer, Information Security Division, has over 31 years of experience with over three years in the current role. Samina Naz — Head, Service Quality Division, brings over 22 years of experience across leading financial institutions.

The Bank has various committees in place at the management level to oversee its day-to-day operational matters and make decisions to implement the strategy outlined by the Board. These include: i) Head Office Credit Committee (HOCC), ii) Asset Liability Committee (ALCO), iii) Management Committee (MC), iv) Management Risk Management Committee (MRMC), v) IT Steering Committee (ITSC), vi) Disciplinary Action Committee (DAC), vii) Employee Grievance Handling Committee, viii) Expenses Approval Committee, ix) Staff Expenses Approval Committee, x) NPL Review & Settlement Committee, xi) Compliance Committee of Management, xii) IFRS-9 Steering Committee of the Management, xiii) Management Image Building & Branding Committee, xiv) Banking on Equality Committee, xv) ICFR Steering Committee, xvi) Assets Disposal Committee, xvii) BOK Committee for Protection of Employees against Workplace Harassment, xviii) Environmental, Social & Governance/Sustainable Development Goals Committee, xix) Conversion Monitoring Committee, xx) Conversion Implementation Committee, xxi) Agriculture Credit Committee, xxii) Vendor Enlistment Committee, xxiii) Fair Treatment of Consumer Committee, xxiv) Loss Approval Committee, xxv) Committee for Evaluation of Request for Tender/RFP, and xxvi) SME Finance Governance & Oversight Committee. The management committees comprise the CEO and relevant department heads, ensuring effective oversight of the Bank's operational matters including human resources, different lines of business, risk management, compliance, Islamic banking conversion, and administration.

The Bank operates on TEMENOS R19 as its Core Banking System (CBS), with all Management Information System (MIS) reports generated and maintained through a dedicated Business Intelligence (BI) application, facilitating data-driven decision-making and operational oversight. The Bank has established a dedicated Information Security Division headed by a Chief Information Security Officer (CISO), reflecting its commitment to safeguarding data integrity, system resilience, and regulatory compliance across all digital operations. A comprehensive IT governance framework is in place, overseen at the Board level through the Board IT Steering Committee, which met five times during CY25. Digital transformation remained a key strategic priority during CY25, with the Bank further expanding its digital banking capabilities, enabling customers to seamlessly conduct transactions through secure mobile and online platforms. Notable milestones during the year include the launch of the Digital Mastercard, broadening the Bank's product suite, and the launch of BOK KorPay, the Bank's dedicated home remittance digital brand, enhancing its presence in the growing remittance segment. The Bank continues to invest in upgrading its IT infrastructure to strengthen reporting mechanisms and enable efficient, real-time monitoring across its diverse portfolios. On the Islamic banking front, deposits are mobilized under the Mudarabah arrangement, in line with Shariah principles. To ensure transparency and accuracy in profit distribution and pool management, the Bank has implemented "Al-Qist", a specialized software solution designed to support Islamic financial operations, reflecting the Bank's commitment to strong systems and governance in its Islamic banking operations.

Bank of Khyber's Risk Management function, headed by the Chief Risk Officer (CRO), anchors the Bank's risk governance through a structured framework embedded across all levels of the organization. The Board Risk Management Committee (BRMC) provides Board-level oversight, while at the management level, three specialized committees ensure focused oversight, namely i) Head Office Credit Committees, ii) Management Risk Committee (MRC), and iii) Assets and Liabilities Committee (ALCO). The Enterprise Risk Management Division (ERMD) oversees market, liquidity, operational, and environmental risks, employing advanced tools including stress testing, early warning indicators, RCSAs, and KRIs, supported by Risk Nucleus (GRC) software. For credit risk, the Bank employs Customer Risk Rating (CRR) and Facility Risk Rating (FRR) models with ECL measured in accordance with IFRS 9 and SBP Prudential Regulations.

Industry Dynamics 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, Bank of Khyber sustained a cautious but resilient performance during CY25. The Bank's net advances declined by 13.7% to PKR 126,706 mln (CY24: PKR 146,882 mln), reflecting the broader sector-wide trend of subdued credit deployment in a challenging macroeconomic environment. The Advance-to-Deposit Ratio (ADR) fell sharply to 33.51% (CY24: 52.90%), attributable primarily to a significant surge in deposits, which grew by 36.2% to PKR 378,123 mln (CY24: PKR 277,642 mln), outpacing lending activity. While this deposit mobilization strengthens the Bank's funding base and liquidity profile, the contraction in the lending portfolio reflects a risk-averse posture aligned with prevailing sector dynamics. On the asset quality front, NPLs declined by 5.8% to PKR 12,530 mln (CY24: PKR 13,301 mln); however, the infection ratio marginally increased to 9.04% (CY24: 8.33%), owing to the faster pace of decline in the gross advances base relative to NPL reduction. Encouragingly, the Bank's Capital Adequacy Ratio (CAR) improved notably to 20.15% (CY24: 17.81%), comfortably exceeding the minimum regulatory requirement of 11.50%, and reflecting a strengthened capital position that provides a healthy buffer to absorb potential credit shocks.

BoK, categorized as a small bank, demonstrated strong deposit growth, recording a 36.2% increase in its total deposit base to PKR 378.1bln at end-CY25 (CY24: PKR 277.6bln). Within this, customer deposits grew to PKR 375.3bln (CY24: PKR 275.7bln), reflecting deepening retail and commercial penetration alongside a substantial increase in Islamic deposits in line with the Bank's ongoing conversion to full Islamic banking. The Bank's market share of total industry deposits improved modestly to 1.0% (CY24: 0.9%), against an overall banking sector deposit base of PKR 38,510.7bln at end-CY25, underscoring the Bank's growth trajectory relative to a highly competitive industry landscape.

In CY25, BoK's total markup income declined by 19.9% to PKR 52,234mln (CY24: PKR 65,221mln), reflecting compression in asset yields across the board amid an easing monetary policy environment. However, on a spread basis, this development was net-positive as liability repricing was more aggressive and faster than asset repricing. Advances-related markup declined by 19.5% to PKR 13,706mln (CY24: PKR 17,021mln), reflecting yield compression driven by the lower interest rate environment. Investment-related markup also declined by 32.2% to PKR 23,747mln (CY24: PKR 35,010mln), representing 45.5% of total markup income, reflecting BoK's predominantly investment-heavy asset mix. Notably, Sukuk-related income grew by 20.4% to PKR 13,816mln (CY24: PKR 11,471mln), reflecting the Bank's increased allocation towards the Islamic banking portfolio in line with its full conversion strategy. On the liability side, markup expenses decreased significantly by 31.8% to PKR 33,233mln (CY24: PKR 48,729mln), supported by effective low-cost deposit mobilization. This asymmetric repricing between faster liability adjustments and slower asset repricing drove a 15.2% expansion in Net Markup Income to PKR 19,001mln (CY24: PKR 16,492mln). Asset yields increased to 12.5% (CY24: 10.8%), while the cost of funds also rose to 7.8% (CY24: 6.9%), resulting in an improved spread of 4.7% (CY24: 3.9%), reflecting that asset repricing outpaced the increase in funding costs. The expansion in spread and net markup income was primarily attributable to effective deposit mobilization and controlled funding costs, partially offsetting the decline in overall markup income.

During CY25, BoK's total income grew by 26.6% to PKR 23,126mln (CY24: PKR 18,270mln), reflecting a strengthening earnings trajectory underpinned by improved net markup income and a significant surge in non-markup income. Non-markup income more than doubled, rising by 132% to PKR 4,125mln (CY24: PKR 1,778mln), primarily driven by a substantial gain on securities of PKR 2,330mln (CY24: PKR 177mln), realized in line with the prevailing interest rate environment. Fee and commission income grew by 13.1% to PKR 1,065mln (CY24: PKR 942mln), primarily comprising card-related fees of PKR 477mln (CY24: PKR 377mln), commission on guarantees of PKR 255mln (CY24: PKR 252mln), commission on trade of PKR 168mln (CY24: PKR 153mln), and commission on remittances of PKR 48mln (CY24: PKR 53mln). Foreign exchange income increased by 11.9% to PKR 593mln (CY24: PKR 529mln), while net loss on derecognition of financial assets measured at amortized cost was reported at PKR 44mln (CY24: PKR 24mln loss), and other income stood at PKR 166mln (CY24: PKR 140mln). On the expense side, non-markup expenses increased by 11% to PKR 11,725mln (CY24: PKR 10,561mln), driven by operational expansion and inflationary adjustments reflecting costs incurred to enhance efficiency and business capacity. Consequently, Profit Before Credit Loss Allowance grew by 47.9% to PKR 11,401mln (CY24: PKR 7,709mln), indicating strong operating performance and positive operating leverage, as also reflected in the improved cost-to-income ratio of 50.7% (CY24: 57.7%). A net ECL reversal of PKR 881mln (CY24: PKR 426mln reversal) was recorded, mainly due to improved recoveries. Accordingly, the Bank reported its highest-ever Profit Before Tax (PBT) of PKR 12,282mln (CY24: PKR 8,135mln), registering a YoY growth of 51%. Net taxation increased by 43% to PKR 6,466mln (CY24: PKR 4,520mln). Subsequently, Profit After Tax (PAT) increased by 61% to PKR 5,816mln (CY24: PKR 3,615mln), with an effective tax rate of 52.6%, translating into an EPS of PKR 5.02 (CY24: PKR 3.12).

The banking sector continues to witness heightened competition, primarily influenced by technological disruption and changing customer preferences. To remain aligned with the evolving market dynamics, the Bank is focused on accelerating its digital transformation agenda by expanding its range of digital and electronic banking solutions. The strategy encompasses further development of seamless mobile and internet banking platforms, strengthening self-service channels, and deploying innovative technology-driven solutions aimed at enhancing customer experience, convenience, and overall engagement.

At end-CY25, BoK's gross advances portfolio declined by 13.2% to PKR 138,605mln (end-CY24: PKR 159,624mln), reflecting a deliberate reduction in advances as deposit growth significantly outpaced lending activity. Consequently, the Advances-to-Deposit Ratio (ADR) declined sharply to 36.7% (end-CY24: 57.5%), reflecting the Bank's increasing reliance on government securities as an alternative deployment of funds. The Top 20 advances stood at PKR 74,226mln (end-CY24: PKR 109,979mln), representing 53.6% of gross advances (end-CY24: 68.9%), largely comprising exposures to corporate borrowers across key sectors. On the asset quality front, NPLs improved to PKR 12,530mln (end-CY24: PKR 13,301mln), a decline of 5.8%, primarily driven by the Bank's concerted recovery efforts during the year. The Top 20 NPLs stood at PKR 7,431mln, representing 58.8% of total NPLs (end-CY24: 59.0%), indicating a relatively concentrated NPL base within the top obligors. The gross infection ratio stood at 9.0% (end-CY24: 8.3%), while the net infection ratio remained well-contained at 0.5% (end-CY24: 0.4%), reflecting strong provision coverage with ECL allowance of PKR 11,899mln (end-CY24: PKR 12,742mln) against classified advances. Overall, BoK's credit risk profile remains supported by improving asset quality metrics, prudent provisioning practices, and a strengthened risk management framework.

At end-CY25, BoK's investment portfolio stood at PKR 274,957mln (end-CY24: PKR 282,767mln), reflecting a modest decline of 2.8%. Government securities continued to dominate, constituting 94.2% of total investments at PKR 259,127mln (end-CY24: PKR 255,339mln). Within government securities, Ijarah Sukuks recorded a sharp increase of 44.7% to PKR 112,688mln (end-CY24: PKR 77,900mln), reflecting the Bank's strategic shift towards Islamic instruments in line with its full conversion strategy. Market Treasury Bills (MTBs) surged by 184% to PKR 75,614mln (end-CY24: PKR 26,601mln), reflecting enhanced short-term liquidity deployment, while Pakistan Investment Bonds (PIBs) declined significantly by 52.5% to PKR 71,692mln (end-CY24: PKR 150,838mln), as the Bank repositioned its portfolio in line with the Islamic conversion strategy. Within PIBs, approximately PKR 70,826mln (98.8%) are floating rate instruments with a weighted average maturity of 3.44 years, while PKR 866mln (1.2%) are fixed rate instruments with a weighted average maturity of 4.95 years. The persistent concentration in government-backed instruments highlights BoK's conservative and stability-focused investment strategy, balancing yield enhancement with capital preservation. The Bank also holds a strategic investment in Saudi Pak Consultancy Company Limited (formerly Saudi Pak Leasing Company Limited), with 19.5 million shares representing a 37% stake at a total cost of PKR 195mln. Going forward, maintaining optimal duration and yield management within the portfolio will be essential to sustain returns and liquidity buffers amid a potentially stabilizing interest rate environment.

At end-CY25, BoK maintained a strong liquidity profile, with the Liquidity Coverage Ratio (LCR) improving significantly to 233.18% (end-CY24: 208.88%), well above the regulatory minimum, reflecting robust liquidity buffers. Total deposits grew by 36.2% to PKR 378,123mln (end-CY24: PKR 277,642mln), primarily driven by a substantial increase in Islamic deposits in line with the Bank's full conversion strategy. In terms of deposit mix, current deposits rose by 29.4% to PKR 71,071mln (end-CY24: PKR 54,900mln), savings deposits increased by 30.2% to PKR 177,173mln (end-CY24: PKR 136,080mln), and term deposits surged by 55.7% to PKR 108,170mln (end-CY24: PKR 69,478mln). The CASA ratio stood at 65.6% (end-CY24: 68.8%), with current accounts comprising 18.8% (end-CY24: 19.8%) and savings accounts comprising 46.8% (end-CY24: 49.0%) of total deposits. Government deposits remained the dominant contributor at PKR 216,877mln, representing 57.4% of total deposits (end-CY24: 53.7%), while individual deposits grew by 25.3% to PKR 91,356mln (end-CY24: PKR 72,930mln) and private sector deposits increased by 27.3% to PKR 66,912mln (end-CY24: PKR 52,563mln). The high concentration in government deposits underscores a structural funding risk, as any change in government policy or fiscal position could result in significant outflows. In terms of deposit concentration, the Top 20 depositors collectively held PKR 139,626mln, representing 36.9% of total deposits, with the majority comprising government and public sector entities — reflecting the Bank's historically strong public sector relationships while simultaneously highlighting depositor concentration risk. Going forward, as term deposits mature and reprice at lower rates, the Bank is expected to benefit from a lower cost of deposits, providing further support to net markup income in CY26.

As of end-CY25, BoK's Capital Adequacy Ratio (CAR) improved to 20.15% (CY24: 17.81%), comfortably above the minimum threshold of 11.50% prescribed by the SBP, providing a comfortable buffer against regulatory requirements. The Common Equity Tier 1 (CET-1) ratio also strengthened to 18.31% (CY24: 15.67%), reflecting a strong and predominantly equity-funded capital base. The improvement in CAR was primarily driven by the growth in total equity to PKR 23,677mln (end-CY24: PKR 21,899mln), supported by retained earnings and reserves, which grew by 23% to PKR 6,229mln (end-CY24: PKR 5,066mln). The Bank does not carry any subordinated debt or additional Tier 1 instruments, with its capital base entirely comprising core equity, underscoring a conservative and self-sustaining approach to capital management. The Bank's strong capitalization, well above regulatory minimums, reflects its commitment to maintaining adequate capital buffers to support risk absorption and future growth.