Contents

Corporate Information

2

Unconsolidated Financial Statements

Directors' Report

4

Independent Auditor's Review Report

15

Condensed Interim Unconsolidated Statement of Financial Position

16

Condensed Interim Unconsolidated Profit and Loss Account

17

Condensed Interim Unconsolidated Statement of Comprehensive Income

18

Condensed Interim Unconsolidated Statement of Changes in Equity

19

Condensed Interim Unconsolidated Cash Flow Statement

20

Notes to the Condensed Interim Unconsolidated Financial Statements

21

Consolidated Financial Statements

Directors' Report

47

Condensed Interim Consolidated Statement of Financial Position

54

Condensed Interim Consolidated Profit and Loss Account

55

Condensed Interim Consolidated Statement of Comprehensive Income

56

Condensed Interim Consolidated Statement of Changes in Equity

57

Condensed Interim Consolidated Cash Flow Statement

58

Notes to the Condensed Interim Consolidated Financial Statements

59

June 30, 2023 Half Year 1

Corporate Information

Board of Directors

Mian Muhammad Younis

Chairman/Non-Executive Director

Mr. Ahmed Abdulrahim Mohamed Abdulla Bucheery

Vice Chairman/Non-Executive Director

Mr. Yousaf Hussain

President & CEO

Mr. Imtiaz Ahmad Pervez

Non-Executive Director

Mr. Ali Munir

Independent Director

Mr. Juma Hasan Ali Abul

Non-Executive Director

Mr. Abdulelah Ebrahim Mohamed AlQasimi

Non-Executive Director

Mr. Abdulla Abdulaziz Ali Taleb

Non-Executive Director

Ms. Fatima Asad Khan

Independent Director

Mr. Mohsin Tariq

Independent Director

Ms. Sadia Khan

Independent Director

Mr. Farooq Rahmatullah Khan

Non-Executive Director

Board Audit & Corporate Governance Committee

Mr. Ali Munir

Chairman

Mr. Ahmed Abdulrahim Mohamed Abdulla Bucheery

Member

Mr. Juma Hasan Ali Abul

Member

Mr. Mohsin Tariq

Member

Board Risk Management Committee

Mr. Imtiaz Ahmad Pervez

Chairman

Mr. Abdulelah Ebrahim Mohamed AlQasimi

Member

Mr. Abdulla Abdulaziz Ali Taleb

Member

Mr. Ali Munir

Member

Mr. Yousaf Hussain

Member

Recruitment Nomination and Remuneration Committee

Mr. Ahmed Abdulrahim Mohamed Abdulla Bucheery

Chairman

Mr. Juma Hasan Ali Abul

Member

Mr. Mohsin Tariq

Member

Ms. Fatima Asad Khan

Member

Ms. Sadia Khan

Member

Board Strategy Committee

Mian Muhammad Younis

Chairman

Mr. Ahmed Abdulrahim Mohamed Abdulla Bucheery

Member

Mr. Juma Hasan Ali Abul

Member

Mr. Imtiaz Ahmad Pervez

Member

Ms. Fatima Asad Khan

Member

Mr. Yousaf Hussain

Member

2 Half Year June 30, 2023

Corporate Information

Board IT Committee

Ms. Sadia Khan

Chairperson

Mr. Abdulelah Ebrahim Mohamed AlQasimi

Member

Mr. Abdulla Abdulaziz Ali Taleb

Member

Mr. Yousaf Hussain

Member

Note: The above information is effective from July 17, 2023

Shariah Board

Mufti Muhammad Mohib-ul-Haq Siddiqui

Chairman Shariah Board

Dr. Mufti Khalil Ahmad Aazami

Shariah Board Member

Mufti Muhammad Ashja Khan

Shariah Board Member

Mufti Abdul Basit

Shariah Board Member

Mufti Muhammad Abdullah

Resident Shariah Board Member

Syed Majid Ali

Chief Financial Officer

Mr. Aurangzeb Amin

Company Secretary & Head of Legal

M/s. KPMG Taseer Hadi & Co., Chartered Accountants

Auditors

M/s. Mohsin Tayebaly & Co., Advocate

Legal Advisors

Registered Office

Share Registrar

Faysal Bank Limited

CDC Share Registrar Services Limited

Faysal House, St-02, Commercial Lane,

CDC House, 99-B,Block-B,

Main Shahrah-e-Faisal,

SMCHS, Main Shahrah-e-Faisal,

Karachi, Pakistan

Karachi-74400

UAN

:

(92-21)111-747-747

Tel

:

(92-21)111-111-500

Tel

:

(92-21)3279-5200

Fax

:

(92-21) 34326053

Fax

:

(92-21)3279-5226

Email

:

info@cdcsrsl.com

Website :

www.faysalbank.com

June 30, 2023 Half Year 3

Directors' Report

Unconsolidated Financial Statements

On behalf of the Board of Directors, we are pleased to present the Directors' Report along with unaudited condensed interim financial statements of Faysal Bank Limited ("FBL" or "the Bank") for the half year ended June 30, 2023.

Company Profile

FBL was incorporated in Pakistan on October 3, 1994, as a public limited company and its shares are listed on Pakistan Stock Exchange. FBL offers a wide range of Islamic banking services to all customer segments, i.e., Retail, Small & Medium Sized Enterprises, Commercial, Agri-based, and Corporate.

The Bank surrendered its conventional banking license on 31 December 2022 and effective 01 January 2023 started operations under an Islamic Banking License issued by the State Bank of Pakistan. Its footprint spreads over 270 cities across the country with 700 branches offering only sharia-compliant banking services.

Holding Company

Ithmaar Bank B.S.C (closed), a banking entity regulated by the Central Bank of Bahrain, is the parent company holding directly and indirectly 66.78% (2022: 66.78%) of the Bank's shares. Ithmaar Bank B.S.C. (closed) is a wholly owned subsidiary of Ithmaar Holdings B.S.C. Dar Al- Maal Al-Islami Trust (DMIT) is the holding entity of Ithmaar Holding B.S.C. and the ultimate parent of the Bank. DMIT was formed by an indenture under the laws of the Commonwealth of The Bahamas for the purpose of conducting business affairs in conformity with Islamic law, principles, and traditions.

Economic Update

The Executive Board of the International Monetary Fund (IMF) approved a 9-monthStand-By Arrangement (SBA) for Pakistan for an amount of approx. USD 3 billion. IMF approval allowed for an immediate disbursement of approx. USD 1.2 billion. The remaining amount will be phased over the program's duration, subject to two quarterly reviews. The program will focus on implementation of the FY24 budget, market-determined exchange rate, an appropriately tight monetary policy and progress on structural reforms. Due to the first tranche and deposits from friendly countries SBP FX reserves have crossed USD 8.5 billion, which has undoubtedly shielded Pakistan from the looming threat of heightened default risks for at least six months and caused a rally in Pakistan's Eurobonds.

In line with the directions laid out by IMF, State Bank of Pakistan (SBP) raised the policy rate by 100 basis points to 22% in the most recent emergency meeting. The average CPI for FY23 was 29.18%, as inflation for June clocked at 29.4%. The YoY increase was widespread, with the largest portion coming from non-perishable food items, which increased up to 41.79% YoY. As a result of the impact of restrictive monetary policy, IMF anticipates an average inflation rate of 25.9% for FY24, strong inflation in first half of the year and falling inflation in the second half. In FY24, IMF forecasts 2.5% GDP growth for Pakistan, up from 0.3% from in FY23.

The FBR has collected PKR 7.18 trillion in FY23 against the assigned target of PKR 7.47 trillion. FBR's revenue target has been increased to PKR 9.415 trillion, requiring a 31% increase in the

4 Half Year June 30, 2023

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Faysal Bank Ltd. published this content on 25 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 August 2023 09:41:01 UTC.