Faysal Bank : Transmission of Quarterly Accounts for the period ended March 31, 2023 - Faysal Bank Limited

Contents

Corporate Information	2
Unconsolidated Financial Statements
Directors' Report	4
Condensed Interim Unconsolidated Statement of Financial Position	14
Condensed Interim Unconsolidated Profit and Loss Account	15
Condensed Interim Unconsolidated Statement of Comprehensive Income	16
Condensed Interim Unconsolidated Statement of Changes in Equity	17
Condensed Interim Unconsolidated Cash Flow Statement	18
Notes to the Condensed Interim Unconsolidated Financial Statements	19
Consolidated Financial Statements
Directors' Report	45
Condensed Interim Consolidated Statement of Financial Position	52
Condensed Interim Consolidated Profit and Loss Account	53
Condensed Interim Consolidated Statement of Comprehensive Income	54
Condensed Interim Consolidated Statement of Changes in Equity	55
Condensed Interim Consolidated Cash Flow Statement	56
Notes to the Condensed Interim Consolidated Financial Statements	57

Registered Office

Faysal House, St-02, Commercial Lane,

Main Shahrah-e-Faisal, Karachi, Pakistan

Tel: [phone] Fax: [phone]

March 31, 2023 First Quarter

1

Corporate Information

Board of Directors
Mr. Farooq Rahmatullah Khan	Chairman/Non-Executive Director
Mr. Ahmed Abdulrahim Mohamed Abdulla Bucheery	Vice Chairman/Non-Executive Director
Mr. Yousaf Hussain	President & CEO
Mian Muhammad Younis	Independent Director
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
Board Audit & Corporate Governance Committee
Mian Muhammad Younis	Chairman
Mr. Ahmed Abdulrahim Mohamed Abdulla Bucheery	Member
Mr. Juma Hasan Ali Abul	Member
Mr. Ali Munir	Member
Board Risk Management Committee
Mr. Imtiaz Ahmad Pervez	Chairman
Mr. Abdulelah Ebrahim Mohamed AlQasimi	Member
Mr. Abdulla Abdulaziz Ali Taleb	Member
Mian Muhammad Younis	Member
Mr. Yousaf Hussain	Member
Recruitment Nomination and Remuneration Committee
Mr. Ahmed Abdulrahim Mohamed Abdulla Bucheery	Chairman
Mr. Juma Hasan Ali Abul	Member
Mian Muhammad Younis	Member
Mr. Ali Munir	Member
Ms. Fatima Asad Khan	Member
Board Strategy Committee
Mr. Farooq Rahmatullah Khan	Chairman
Mr. Ahmed Abdulrahim Mohamed Abdulla Bucheery	Member
Mr. Juma Hasan Ali Abul	Member
Ms. Fatima Asad Khan	Member
Mr. Mohsin Tariq	Member
Mr. Yousaf Hussain	Member

2 First Quarter

March 31, 2023

Corporate Information

Board IT Committee
Mr. Ali Munir	Chairman
Mr. Abdulelah Ebrahim Mohamed AlQasimi	Member
Mr. Abdulla Abdulaziz Ali Taleb	Member
Mr. Mohsin Tariq	Member
Mr. Yousaf Hussain	Member
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	:	[e-mail]
Website :	www.faysalbank.com

March 31, 2023 First Quarter

3

Directors' Report

Unconsolidated Financial Statements

On behalf of the Board of Directors, we are pleased to present the unaudited condensed interim financial statements of Faysal Bank Limited ("FBL" or "the Bank") for the quarter ended March 31, 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 modern banking services to all customer segments, i.e., Retail, Small & Medium Sized Enterprises, Commercial, Agri-based, and Corporate, compliant with Sharia'ah.

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 (SBP). 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

In the meeting of the Monetary Policy Committee held on April 4, 2023, the SBP raised the policy rate by another 100 basis points to 21% citing persistent inflationary pressures. The average Consumer Price Index (CPI) for 9MFY23 stood at 27.3%, as inflation for March clocked at 35.4%. The rise was broad based with a bigger part coming from food inflation, which picked up to 47.15% YoY. Looking ahead, inflation is expected to plateau and fall in 3QCY23 as base effect kicks in. World Bank projects Pakistan's GDP growth at 0.4% in FY23 i.e., 1.6% down from its forecast in October 2022.

Federal Board of Revenue (FBR) collected PKR 5.16 trillion in 3QFY23 against the assigned target of PKR 5.43 trillion, subsequently the fiscal deficit was recorded at 2.3% of GDP whereas the primary balance recorded a surplus of 1.1% of GDP in 7MFY23. Further slowdown in economic activity and reduction in imports in 4QFY23 poses downside risks to maintaining growth momentum in tax collection which may put further pressure on the GOP to introduce more taxes to achieve targets set by IMF.

According to the figures from Pakistan Bureau of Statistics (PBS), the trade deficit for the 3QFY23 narrowed to USD 22.9 billion where exports declined by 9.9% to USD 21.0 Billion, and imports plummeted 25.3% to USD 43.9 Billion. In 8MFY23, workers' remittances declined by 10.8% YoY and were at USD 17.9 billion. The Current Account Deficit (CAD) shrank for 8MFY23

4 First Quarter

March 31, 2023