Habib Bank : HBL | Habib Bank Limited Transmission of HBL Annual Report for the Year Ended December 31 2023

A n n u a l R e p o r t 2023

Enriching Lives

HBL makes a concerted effort to operate in ways that enhance the well-being of society, a spirit that we inculcate in our employees as a socially responsible organization. We believe strongly that a growing economy, a dynamic society, and a sustainable natural environment, all have an interdependent relationship; HBL operates with a 360-degree approach towards achieving impact and sustainability, both within the organization and in the communities we serve.

HBL's good governance and Corporate Social Responsibility is not confined to charitable giving, but also directed at conducting our daily business and living our daily lives with constant care for our physical and social environments.

Enriching Lives

T A B L E O F C O N T E N T S

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2

3

Corporate Information Management

Vision & Mission Values

6 - Point Business Agenda International Footprint HBL Domestic Network Accolades

Key Performance Indicators

Growth at a Glance - 2018 to 2023 (Consolidated) Board of Directors

Corporate Sustainability

Chairman's Message Directors' Report (English) Directors' Report (Urdu)

Annual Statement on Internal Controls Independent Auditor's Review Report Statement of Compliance

Shariah Board Report (English) Shariah Board Report (Urdu)

04

05

06

07

08

10

11

12

13

14

16

20

24

27

43

63

65

66

69

71

4

5

6

CONSOLIDATED

FINANCIAL STATEMENTS

Independent Auditor's Report - Consolidated Consolidated Statement of Financial Position Consolidated Profit and Loss Account Consolidated Statement of Comprehensive Income Consolidated Statement of Changes in Equity Consolidated Cash Flow Statement

Notes to the Consolidated Financial Statements Annexures - Consolidated

UNCONSOLIDATED

FINANCIAL STATEMENTS

Directors' Report (English) Directors' Report (Urdu)

Independent Auditor's Report - Unconsolidated Unconsolidated Statement of Financial Position Unconsolidated Profit and Loss Account Unconsolidated Statement of Comprehensive Income Unconsolidated Statement of Changes In Equity Unconsolidated Cash Flow Statement

Notes to the Unconsolidated Financial Statements Annexures - Unconsolidated

Pattern of Shareholding

Trading by Substantial Shareholder and Executives of the Bank

Categories of Shareholders Notice of Annual General Meeting Admission Slip

Form of Proxy (English) Form of Proxy (Urdu)

74

76

80

81

82

83

84

85

165

244

246

261

280

284

285

286

287

288

289

365

366

369

370

372

Corporate Information

Board of Directors

Mr. Sultan Ali Allana	Chairman
Mr. Shaq Dharamshi	Director
Mr. Moez Ahamed Jamal	Director
Mr. Salim Raza	Director
Dr. Najeeb Samie	Director
Mr. Khaleel Ahmed	Director
Ms. Saba Kamal	Director
Mr. Muhammad Aurangzeb	President & CEO

Board Committees

Board Audit Committee

Mr. Khaleel Ahmed	Chairman
Dr. Najeeb Samie	Member
Mr. Moez Ahamed Jamal	Member
Chief Internal Auditor	Secretary

Board Compliance and Conduct Committee

Mr. Moez Ahamed Jamal	Chairman
Mr. Shaq Dharamshi	Member
Mr. Khaleel Ahmed	Member
Chief Compliance Ocer	Secretary

Board Development Finance Committee

Mr. Salim Raza	Chairman
Mr. Khaleel Ahmed	Member
Ms. Saba Kamal	Member
Mr. Muhammad Aurangzeb	Member
Head - Development Finance	Secretary

Board Human Resource and Remuneration Committee

Mr. Khaleel Ahmed	Chairman
Mr. Sultan Ali Allana	Member
Dr. Najeeb Samie	Member
Mr. Shaq Dharamshi	Member
Chief Human Resources Ocer	Secretary

Board IT Committee

Ms. Saba Kamal	Chairperson
Mr. Moez Ahamed Jamal	Member
Mr. Salim Raza	Member
Chief Operating Ocer	Secretary

Board Risk Management Committee

Mr. Salim Raza	Chairman
Mr. Shaq Dharamshi	Member
Mr. Muhammad Aurangzeb	Member
Chief Risk Ocer	Secretary

Board Nomination and Remuneration Committee

Mr. Salim Raza	Chairman
Mr. Moez Ahamed Jamal	Member
Mr. Shaq Dharamshi	Member
Dr. Najeeb Samie	Member
Company Secretary	Secretary

Board Strategy Input and Monitoring Committee

Mr. Sultan Ali Allana	Chairman
Mr. Moez Ahamed Jamal	Member
Dr. Najeeb Samie	Member
Ms. Saba Kamal	Member
Mr. Muhammad Aurangzeb	Member
Head Corporate Strategy	Secretary

Chief Operating Officer

Mr. Muhammad Nassir Salim

Chief Financial Officer

Mr. Rayomond H. Kotwal

Company Secretary

Mr. Uzman Naveed Chaudhary

Legal Advisors

Mandviwalla and Zafar

Legal Consultants and Advocates

Auditors

KPMG Taseer Hadi & Co

Chartered Accountants

Share Registrar

CDC Share Registrar Services Limited CDC House, 99 - B, Block 'B', S.M.C.H.S., Main Shahra-e-Faisal Karachi - 74400, Pakistan

Tel: Customer Support Services (Toll Free) 0800-CDCPL (23275) Fax: [phone]

Email: [e-mail]

Website: www.cdcsrsl.com

HBL Corporate Secretariat

Phone: [phone]

Fax: [phone]

Principal Office

Habib Bank Limited

HBL Tower, Plot No. G-4,

KDA Scheme 5, Block 7 Clifton,

Karachi, Pakistan

Phone: [phone]

Registered Office

Habib Bank Limited

9th Floor, Habib Bank Tower,

Jinnah Avenue, Blue Area, Islamabad, Pakistan

Phone: [phone]

Fax: [phone]

Corporate Website

www.hbl.com

Internet Banking

www.hbl.com/personal/digital-banking/hbl-internetbanking

Konnect

www.hbl.com/konnect

hblbank | HBLPak

04 HBL Annual Report | 2023

Management

Muhammad Aurangzeb

President & CEO

Muhammad Nassir Salim

Chief Operating Oicer

Aalishaan Zaidi

Head Retail Banking

Aamir Irshad

Head Corporate, Commercial & Investment Banking

Aamir Kureshi

Head Consumer, Agriculture & SME Banking

Abrar A. Mir

Chief Innovation & Financial Inclusion Ocer

Adnan Pasha Siddiqui

Head Development Finance

Armughan Ahmed Kausar

Chief Compliance Ocer

Faisal Lalani

Head Financial Institutions & Remittances

Farhan Talib

Head International

Jamal Nasir

Chief Human Resources Ocer

Michael Maier

Chief Technology Ocer

Muhammad Farhanullah Khan

Chief Internal Auditor

Naeem Bashir Ahmad

Head Corporate Strategy

Rayomond H. Kotwal

Chief Financial Ocer

Risha A. Mohyeddin

Global Treasurer

Sami Aziz

Head Remedial & Structured Credits

Tariq Masaud

Chief Risk Ocer

Uzman Naveed Chaudhary

Company Secretary and Head Regulatory Aairs

HBL Annual Report | 2023

05

Vision

Enabling people to advance with confidence and success.

Mission

To make our customers prosper, our staff excel and create value for stakeholders.

06 HBL Annual Report | 2023

Values

Our values are the fundamental principles that define our culture and are brought to life in our attitudes and behaviour. It is our values that make us unique.

INTEGRITY - Be Ethical and Fair

• We honour our commitments and do what is right
• We are fair, respectful and honest at all times
• We are ethical in our decisions and interactions
• We take responsibility for our actions
• We are prudent and responsible with the assets entrusted to HBL

CUSTOMER CENTRIC - Deliver Great Experiences

• We value our clients and develop products and services around their needs
• We provide exceptional service to all we serve
• We understand and respect our customers
• We deliver solutions that add value to our customers' lives
• We consider the impact of our policies and decisions on our customers
• We are fully transparent with our customers

VALUE PEOPLE - Respect, Empower, Appreciate

• We treat our people equitably and make decisions on merit
• We invest in people and provide opportunities for learning and growth
• We empower people to do what is needed for success
• We provide a positive and collaborative work environment
• We celebrate our successes and recognise people for their contributions
• We encourage and embrace diversity

PROGRESSIVE - Innovate and Challenge

• We challenge our thinking to raise the bar
• We encourage our team members to question the status quo
• We innovate and adapt to change
• We positively impact and serve the communities in which we live

EXCELLENCE - Be Your Best

• We lead in our industry
• We take ownership of what we do
• We relentlessly pursue quality without compromise
• We consistently adhere to measurable standards and look for ways to exceed them
• We benchmark against the best

HBL Annual Report | 2023	07

1

Relentless focus on customer experience

• Realign organization from a customer segment lens
• Embed Customer Centricity into the DNA of the organization
• Accelerate the customer experience journey towards 'Delighting our customers'
• Serve customers through 'Technology, with a human touch'
• Provide personalized, user-friendly solutions that cater to evolving expectations

2

People Agenda to be our top priority

• Leadership Matters - Build enterprise-wide leadership capabilities
• Attract, develop and retain top-quality talent through robust career planning
• Culture change through using values-based behaviours to drive performance and rewards
• Unlock synergies through cross-functional and agile teamwork
• Continue focus on gender and dierently-enabled diversity

3

Making Innovation the

Driving Force

• Imagine, rethink, and predict evolving customer needs
• Increase speed of delivery by simplifying, digitizing, and enabling straight through processing
• Use AI for routine, repetitive, tasks, allowing our people to unlock their potential
• Think Again - Continuous process improvement as 'good is never good enough'
• Foster a culture of innovation, ownership and engagement to attract top talent

6

Point

Business

Agenda

08 HBL Annual Report | 2023