Askari Bank : Transmission of Annual Report for the Year Ended December 2023

CONTENTS

02	03	04	05	06	11
	Vision, Mission &	Financial	Corporate	Organizational	Products &	Notice of the 32nd
	Core Values	Highlights	Information	Chart	Services	Annual General
						Meeting
19	30	31	32	33	35
	Profile of Directors	Board	Chairman's	Value Added	Financial Review	Financial Calendar
		Committees	Review	Statement
36	37	40	42	50	58
	Share & Debt	Horizontal &	Our Presence	Directors' Report to	Six Years' Financial	Directors' Report to
	Information	Vertical Analysis		the Shareholders -	Summary	the Shareholders
59	61	63	English		- Urdu
	Statement on	Statement of	Independent
	Internal Controls	Compliance	Auditors' Review
			Report to the
			Members
	UNCONSOLIDATED FINANCIAL STATEMENTS
66	71	72	73	74	75
	Independent	Unconsolidated	Unconsolidated	Unconsolidated	Unconsolidated	Unconsolidated
	Auditors' Report to	Statement of	Profit and Loss	Statement of	Statement of	Cash Flow
	the Members	Financial Position	Account	Comprehensive	Changes in Equity	Statement
				Income
76	159	160	161
	Notes to the	Profile of Shariah	Report of Shariah	Report of Shariah
	Unconsolidated	Board Members	Board - English	Board - Urdu
	Financial
	Statements
	CONSOLIDATED FINANCIAL STATEMENTS
172	177	178	179	180	181
	Independent	Consolidated	Consolidated Profit	Consolidated	Consolidated	Consolidated Cash
	Auditors' Report to	Statement of	and Loss Account	Statement of	Statement of	Flow Statement
	the Members	Financial Position		Comprehensive	Changes in Equity
				Income
182	258	261	263
	Notes to the	Pattern of	Form of Proxy -	Form of Proxy -
	Consolidated	Shareholding	English	Urdu
	Financial
	Statements

VISION

To be a responsible customer focused bank providing inclusive and progressive financial services

MISSION

To build long term relationships by delivering transformative customer experience, responsible banking, innovative technology, aiming to be employer of first choice and shaping opportunities that grow shareholders' value

CORE VALUES

Commitment: Passionate about our customers' success and delighting them with quality of our service

Integrity: A distinctive investment, delivering outstanding performance, return and value

Fairness: Exemplary compliance, governess and business ethics

Teamwork: Caring for our people and helping them to grow

Service: Dedication towards social development and improvement in quality of life

Annual Report 2023

02

FINANCIAL HIGHLIGHTS

Rupees in million	2023	2022	Growth (%)
Total Assets	2,124,006	1,525,671	39.2
Deposits	1,293,146	1,142,575	13.2
Advances - Net	633,133	583,811	8.4
Investments	1,182,538	762,697	55.0
Shareholders' Equity	97,123	73,322	32.5
Operating profit	43,011	28,502	50.9
Profit before taxation	42,044	27,459	53.1
Profit after taxation	21,435	14,062	52.4
Earnings - Rs. per share	14.79	9.70
Net book value - Rs. per share	67.01	58.18
Market value - Rs. per share	24.72	20.10

Profit After Tax	Earnings Per Share
21,435		14.79
2022	2023	2022	2023
14,062	Rs. in million	9.70	Rupees

Return on Total Equity	Return on Assets
25.15		1.17
2022	2023	2022	2023
21.76	Percentage	1.01	Percentage

Askari Bank Limited

03

CORPORATE INFORMATION

Annual Report 2023

BOARD OF DIRECTORS

Mr. Waqar Ahmed Malik

Chairman / Non-Executive Director

Mr. Sarfaraz Ahmed Rehman

Non-Executive Director

Mr. Arif Ur Rehman

Non-Executive Director

Dr. Nadeem Inayat

Non-Executive Director

Lt Gen Ghayur Mahmood Awan, HI(M), T Bt (Retd) *

Non-Executive Director

Mr. Manzoor Ahmed

Non-Executive Director / NIT Nominee

Raja Muhammad Abbas

Independent Director

Ms. Zoya Mohsin Nathani

Independent Director

Mr. Kamran Yousuf Mirza

Independent Director

Ms. Samina Rizwan

Independent Director

Mr. Atif R. Bokhari

President & Chief Executive

SHARIAH BOARD

Mufti Muhammad Zahid

Chairman

Dr. Muhammad Tahir Mansoori

Resident Shariah Board Member

Mufti Zakir Hassan Naumani

Member

Mufti Dr. Lutfullah Saqib

Member

AUDITORS

KPMG Taseer Hadi & Co.

Chartered Accountants

LEGAL ADVISORS

RIAA, Barker Gillette

Advocates & Corporate Counselors

COMPANY SECRETARY

Syed Ali Safdar Naqvi

REGISTERED OFFICE

AWT Plaza, The Mall, P. O. Box No. 1084

Rawalpindi - 46000, Pakistan

Tel: [phone]

UAN: (92 51) 111 000 787

Fax: [phone]

Email: [e-mail]

* Subject to Fit & Proper Test clearance by the State Bank of Pakistan

BOARD COMMITTEES

AUDIT

Mr. Kamran Yousuf Mirza - Chairman

Dr. Nadeem Inayat

Lt Gen Ghayur Mahmood Awan, HI(M), T Bt (Retd) *

Mr. Manzoor Ahmed

Raja Muhammad Abbas

HUMAN RESOURCE &

REMUNERATION

Mr. Manzoor Ahmed - Chairman

Dr. Nadeem Inayat

Ms. Zoya Mohsin Nathani

Mr. Kamran Yousuf Mirza

Ms. Samina Rizwan

RISK MANAGEMENT

Ms. Zoya Mohsin Nathani - Chairperson

Dr. Nadeem Inayat

Mr. Manzoor Ahmed

Mr. Atif R. Bokhari

INFORMATION TECHNOLOGY

Ms. Samina Rizwan - Chairperson

Dr. Nadeem Inayat

Lt Gen Ghayur Mahmood Awan, HI(M), T Bt (Retd) *

Raja Muhammad Abbas

Mr. Atif R. Bokhari

REGISTRAR & SHARE TRANSFER OFFICE

CDC Share Registrar Services Limited (CDCSRSL) Mezzanine Floor, South Tower, LSE Plaza 19-Khayaban-e-Aiwan-e-Iqbal, Lahore

Tel: Customer Support Services (Toll Free) 0800-CDCPL (23275)

Tel: [phone]

Fax: [phone]

Email: [e-mail]

Website: www.cdcsrsl.com

ENTITY RATINGS

Long Term: AA+

Short Term: A1+

By PACRA

WEBSITE & SOCIAL MEDIA

www.askaribank.com

askaribankpakistan Askari_Bank askaribankpk askaribanklimited AskariBankOfficial

04

ORGANIZATIONAL CHART

Board of Directors

Board Information	Board Human Resource &	Board Risk	Board Audit
Technology Committee	Remuneration Committee	Management Committee	Committee

	President &
	Chief Executive
Group Head	Chief Risk Officer
Retail Banking
Global Treasurer	Chief Compliance Officer
Group Head Corporate &	Group Head Operations
Investment Banking
Country Head	Chief Financial Officer
Islamic Banking
Country Head Special	Chief Information
Assets Management	Officer
Country Head	Country Head
Digital Banking	Human Resources
Country Head Marketing &	Company Secretary
Corporate Communication
Country Head Customer	Chief Internal Auditor
Experience & Service Quality
	Country Head
	General Services

Askari Bank Limited

05

PRODUCTS & SERVICES

Annual Report 2023

Corporate, Commercial & Investment Banking

Askari Bank (the Bank) understands the diverse business requirements of the Bank's corporate and institutional clients, and accordingly strive to meet their expectations by providing a customized and relationship-based banking approach.

Corporate Banking

Corporate banking works on a long-term relationship- based business model to provide a single point within the Bank which meets all business requirements of its corporate and institutional customers, including public sector enterprises. Along with innovative products and solutions, customer service remains the Bank's top priority. The Bank's relationship-oriented outlook focuses on providing a complete array of tailored financing solutions that are practical and cost effective, some of which include:

• Working Capital Facilities
• Term Loans
• Letters of Guarantee
• Letters of Credit
• Discounting Facilities
• Export Financing
• Cash Management and Employee Banking Solutions

Commercial Banking

Commercial Banking serves the middle tier segment by providing both general and tailored solutions encompassing all financial needs of the borrower ranging from Trade Finance to working capital requirements. Dedicated relationship managers provide customized solutions to the Bank's customers.

Investment Banking

Investment banking offers a range of financial advisory and capital raising services to corporate and institutional clients. It also manages the Bank's proprietary investments in local equity and debt markets. Investment banking offers various tailored financial solutions including debt syndications, project finance and advisory services, debt placements through capital markets as well as structured trade finance facilities. Whether a company is seeking to access the local or cross border syndications and debt capital markets, project financing needs, advisory services related to Mergers and Acquisitions and or local equity capital markets for raising capital, the Bank's Investment Banking is well positioned to provide due assistance. We tailor the right structured solutions to meet the Bank's customers' needs in order to enhance business wealth and market competitiveness.

International Banking

Having Correspondent Banking relationships with 670 banks in 88 countries around the world, Askari International Banking remains focused on tapping new markets in Europe apart from South East Asia and

Middle East markets to boost international trade and remittances. Concentrated efforts are also being made to promote business from China, leveraging on positive spill-over of Chinese investment in Pakistan, especially under CPEC.

China Desk

Askari China Desk was created with the sole intent of facilitating Chinese businesses working for various projects in Pakistan and has been immensely successful in term of fostering rich financial prospects and bringing in valuable Chinese deposits and trade. With an increasing number of Chinese investors entering Pakistan, by establishing dedicated China Desk, the Bank is well-placed to cater the needs of all existing and new customers.

Cash Management Services

Askari Cash Management Services aims to effectively manage the accounts receivable portfolio of medium and large corporate entities.

Transactional banking primarily aims at providing clearing, collection and cash / transfer facility to corporate clients.

Employee Banking provides efficient solution of payroll management to the Bank's Corporate clients under one resource center, which handles the process through the vast network of the Bank's branches.

Institutional Sales

Institutional sales offer tailor made and OTC products to its corporate clients catering to their needs alongwith consumer products for their employees at most affordable rates with premium services.

Askari Aasaan Money

Home Remittance segment is pivotal in promoting remittances through its state-of-the-art web based portal "Askari Aasaan Money Transfer". This service is completely free of cost and is available for all citizens across the country.

Branch Banking

Askari Bank is committed to delivering a comprehensive range of financial solutions tailored to meet the diverse banking requirements of the Bank's customers. The Bank's services encompass Conventional, Corporate, Consumer, Islamic, and Agriculture Banking, available through the Bank's extensive network of 660 branches and sub-branches strategically located in major cities and towns across Pakistan.

Current Account

Current Accounts cater to a variety of transactional needs of the Bank's diverse customer base with value added benefits of Cheque books, Debit cards, Bankers' cheques, Real Time Alerts, i-Net Banking and much more.

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Savings Account

Savings accounts are offered by the Bank to both individual and institutional customers include Askari Maximiser, Askari Special Deposit Account and regular Savings Account based on profit and loss sharing (PLS). Askari Savings products offer attractive features and competitive returns.

Term Deposit

The Bank's Term Deposit products are crafted to meet the investment needs of both individual and corporate customers with a medium to long-term horizon. It offers a unique opportunity for customers seeking flexibility of profits at various frequencies.

Value Plus Current Account

Askari Value Plus Current Account provides unparalleled flexibility, financial security, and freedom. Designed for individuals, product offers free life insurance coverage and a range of complimentary banking services for seamless transactions, without any minimum balance requirements.

Askari Asaan Account

Askari Bank offers Asaan Account to unbanked / under- banked individuals. The product is available in Current and Savings account categories. It offers hassle-free account opening and operating procedure to facilitate lower income groups for their banking requirements.

Askari Sahar Account

Specially designed product suite by the name of Askari Sahar Account has been specifically developed to cater to the women segment, with the aim to minimize the gender gap in financial inclusion. Askari Sahar account is offered in all Current, Savings and Term Deposit variants with range of free banking services and attractive returns

DIGITAL BANKING

Askari digital banking solutions empowers customers to manage their finances conveniently and securely from anywhere, at any time. With user-friendly interfaces and robust security measures, the Bank provides seamless access to a wide range of banking services from account management to funds transfer and bill payments, from educational payments to charity & donations, from M-Tag recharge to purchase bus / cinema tickets, Personal Finance Management (PFM) to make and track your monthly budgets, expenses, saving goals and much more. By leveraging digital technologies, we aim to "get closer to the customer" and enhance their banking experience.

Digital Lifestyle Branch:

Askari Bank inaugurated its first digital branch, heralding a new era of banking that seamlessly integrates cutting edge technology with customer-centricity. The opening of digital branch strategically underscores AKBL's devotion showcasing a forward-thinking approach for

innovative banking solutions. Technology utilized at the Bank's 1st digital branch include, Oculus for Virtual Reality Branch Experience, Tablets & Mobile Devices for Digital On-boarding, Cash Recycler Machine, Customer Visit Management System, Interactive Digital Kiosk, and E-Notice Board

Askari Bank's first digital branch

Mobile and Internet Banking:

Askari Bank is committed to simplifying the lives of customers like never before. The Bank MobileApp has undergone a significant upgrade, introducing an end-to- end digital experience for mobile registration - multiple short sprints unfolding to improve various customer journey points. With half a million customers now utilizing the app and giving it an impressive 4.8 rating, the Bank continues to strive for excellence in delivering a seamless digital banking experience.

Salient features offered in MobileApp are as follows:

• QR / HCE Payments through Virtual Cards
• Apply Online for Consumer Products
• Discounts & Alliances information
• Loan(s) details
• Ask Advance - Instant Digital Lending Solution
• Debit Card Management
• Account Statement
• Cheque Book Activation
• Book Cinema and Bus Tickets
• Cheque Management
• Manage Daily limits
• Branch Appointments
• Enhanced Security Features through biometric login & PIN

WhatsApp Banking:

Askari Bank launched WhatsApp Banking as an instant response channel for customers queries, and the way the Bank's customers engage with their accounts. This offers a range of functionalities, including registration, account management, debit card management and the ability to lodge complaints - all from the convenience of WhatsApp.

Askari Bank Limited

07

PRODUCTS & SERVICES

Annual Report 2023

Customer Digital On-Boarding:

Askari Bank takes a transformative approach to enhancing customer experiences by reimagining the inception point of interactions, evolving through iterative enhancements from the optimization of traditional paper-based application processes to the realization of a fully digitized, customer-drivenon-boarding journey. The culmination of this innovation journey has empowered us to extend sophisticated digital capabilities, facilitating fully digital on-boarding experience.

Through the Askari Digital On-boarding platform, the Bank offers Resident Pakistanis the convenience of online account opening, empowering them to initiate their banking relationships effortlessly from anywhere. With this platform, customers gain access to a suite of digital solutions, enabling them to bank on the go with Askari Bank. The range of accounts accessible through this platform includes:

• Askari Asaan Digital Account
• Askari Asaan Digital Remittance Account
• Askari Freelancer Digital Account
• Various other AKBL Accounts

SMS Banking:

Askari Bank offers SMS banking offers the capability to perform various actions through short messaging service. These actions include, Activating a new Debit Card, Changing Debit Card PIN, Blocking / Unblocking Debit Card, Inquiring about account balance, Obtaining a mini statement, Requesting a Cheque Book, and Stopping Cheque Payment.

Consumer Banking

Consumer banking provides range of financing solutions to cater and meet the Bank's customers' personal financing need through innovative products and offerings. The Bank keeps in mind customers' needs at every stage of life. To enrich customer experience, the Bank continuously seek new alliances to provide rich offerings and discounts.

Ask4Car

Askari Ask4Car is an auto financing product for new / used vehicles. It offers competitive floating / fixed mark-up, flexible repayment plan and quick processing without any hidden charges. The product is offered to the customers for a maximum tenor of 5 years.

Personal Finance

With unmatched financing features in terms of loan amount, payback period and easy monthly installments, Askari Bank's Personal Finance makes sure that the Bank's customers get the most out of their loans. The product tenor ranges from 1 - 4 years and is designed for salaried individuals and businessmen.

Ask Advance

Askari Bank also offers Ask Advance. It is an instant Personal Loan for short term period without hassle of any formal approval process and disbursement of loan within minutes. This facility is available 24/7 through Askari Internet Banking and Mobile App and can be availed by the employees of approved companies having payroll disbursement arrangement with Askari Bank.

Mortgage Finance

Askari Bank Mortgage Finance offers competitive rates and flexible terms, making it easy for customers to achieve their homeownership goals.

Whether the Bank's customers are purchasing, building or renovating, the Bank's personalized solutions and expert guidance ensure a transparent and efficient process. This premium housing Finance Product is offered to customers for a period up to 25 years.

MasterCard Credit Card

Askari Bank offers a competitive suite of Classic, Gold, Platinum and Corporate MasterCard Credit Cards that provide superior services, travel privileges, exciting discounts, online payment facility along with reward points and transactional alerts through SMS as an enhanced security feature. The option for Flexible Credit Plans (FCP), Extended Payment Plan (EPP) and Balance Transfer is also available to customers at discounted mark-up rates.

World MasterCard Credit Card

Askari Bank pioneered Pakistan's first ever "World MasterCard" in collaboration with MasterCard International. This credit card is specifically designed for customers seeking high-class service standards and travel privileges worldwide.

Askari VISA Debit Card

Askari Bank has entered into a strategic alliance with Visa, a leading global payments technology company. As a financial institution, Askari Bank's collaboration with Visa provides a significant boost to its global outreach and lucrative enhancement in the Banks Debit card portfolio suite. This partnership taps into Visa's vast international network, offering Askari Bank an opportunity to expand its footprint across continents and cultures.

Call Center

The Bank's Call Center provides a single point of contact to all callers and offers real-time information on products and services. This year the system has been upgraded to empower the Bank's customers by providing efficient self-service banking along with Contact Centre agent assistance round the clock.

Automated Teller Machine (ATM)

Askari Bank, as a member of 1-link, (Pakistan's first payment system operator and service provider) shares

08