Meezan Bank : TRANSMISSION OF ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2022 - MEEZAN BANK LIMITED

FOREWORD

It gives me immense pleasure to share with you our Annual Report especially as we commemorate the 25 years of Meezan Bank, a milestone that has been achieved through sheer dedication, unwavering perseverance, and a spirit of innovation.

As we reflect on the journey of the past 25 years, we are filled with gratitude and awe at the accomplishments we have achieved together for the cause of Islamic banking. From humble beginnings, Meezan has grown to become a trailblazer in the industry, a beacon of hope, and a standard-bearer of excellence, Alhamdulillah.

Our success has been driven by a deep-seated devotion to our values, a focus on customer-centricity, and a passion for innovation that constantly pushes us to new heights. We have weathered challenges, but emerged stronger, wiser, and more determined than ever before. We are humbled by what we have achieved, but even more excited about what lies ahead. As we look to the future, we do so with optimism, confidence, and a steadfast commitment to driving positive

change for our stakeholders, our communities, and our nation.

We look forward to your continued support and patronage over the coming years and decades of excellence, growth, and prosperity, Insha'Allah!

Irfan Siddiqui

Founding President & CEO

This is a photograph of a calligraphic painting in the Board room of Meezan Bank's Head office.

As the idea of setting up Pakistan's first Islamic bank was taking shape, the name "Meezan" was handpicked from the Holy Quran by Dr. Ghazala Siddiqui, wife of Founding President & CEO, Mr. Irfan Siddiqui.

The word "Meezan" carries great significance in Islam and appears several times in Surah Ar Rahman, known to be one of the most beautiful surahs of the Quran. It represents the principles of balance and justice that are central to the natural world, as well as human affairs. Within the realm of Islamic finance, "Meezan" embodies the ideals of financial justice and fairness that are at the core of Shariah-compliant banking.

By Allah's grace, Meezan has now grown into one of the most recognised and reputable brands in the country. Through this brand, Meezan Bank reaffirms its commitment to upholding its Values, and providing pragmatic and excellence-driven solutions to those seeking financial services without compromising their faith. It serves as a reminder to always strive towards balance and justice in all aspects of life, and to promote the greater good for all.

CONTENTS

Chairman's Review	04
Chairman Shariah Board's Message	06
Founding President & CEO's Message	07
Deputy CEO's Message	08
A Few Memories	10
Construction of Meezan House	12
A Snapshot of our Growth over the Years	13
In the News	14

ORGANIZATIONAL OVERVIEW & EXTERNAL ENVIRONMENT

Vision	17
Mission	17
Our Culture	17
Quaid's Concept of Islamic Banking	18
Our Presence	19
Highlights 2022	20
Corporate Profile	22
Credit Rating	22
Calendar of Major Events	22
Corporate Information	23
Shareholders	24
Products and Services	25
Organization Structure	26
Our Leadership	27
History of Meezan Bank	28
Awards & Recognitions	32
Directors' Report to the Members	34
Directors' Report to the Members (Urdu)	49

PERFORMANCE

Business and Operations Review	51
Key Figures at a Glance	68
Six Years' Horizontal Analysis	70
Six Years' Vertical Analysis	71
Review of Six Years' Performance	72
Financial Analysis	73
Market Statistics of Meezan Bank's Share	75
Allocation of Income and Expenses to Remunerative
Depositors' Pool	76
Statement of Value Added and Distributed	77
How We Distribute the Value Created	78
Statement of Inventory	79
Statement of Financing Portfolio Income	79

STRATEGY & RESOURCE

ALLOCATION

Strategic Objectives	82
Strategies in Place	82
Resource Allocation	83
Key Performance Indicators and Future Relevance	83
Competitive Landscape & Market Positioning	84
SWOT Analysis	84

RISK MANAGEMENT

Risk Management Framework	86
Risk & Opportunity Report	87
Business Continuity Management	87
Responding to Critical Challenges and Uncertainties	88

GOVERNANCE

Board of Directors	90
Shariah Board	94
Terms of Reference of Shariah Board	96
Board Committees	97
Management Committees	99
Best Corporate Governance Practices	101
Board Composition	101
Performance Evaluation of the Board of Directors	102
Roles and Responsibilities	103
Performance Review of the President and CEO	104
Election of the Board of Directors	104
Other Matters related to Corporate Governance	105
Report of the Board Audit Committee	107
Review Report to the Members	108
Statement of Compliance with Listed Companies
Code of Corporate Governance	109
Statement of Internal Controls	111
Shariah Board Report	112
Shariah Board Report (Urdu)	119
Policies and Guidelines	120
Standard of Ethics, Business Practices &
Code of Conduct	120
Guidelines on Whistle Blowing	122
Guidelines for Safety of Records of the Company	122
Summary of Corporate Social Responsibility Policy	122
Summary of Sustainability Policy	123
Summary of Green Banking Policy	123
Summary of Information Security Policy	123
IT Governance Policy	124
Salient Features - Directors' Remuneration Policy	125

STAKEHOLDERS

RELATIONSHIP &

ENGAGEMENT

How We Engage with Our Stakeholders	127
Investors' Relations Section on Corporate Website	129
Steps to Encourage Minority Shareholders'
Participation in AGM	129
Summary of Corporate and Analyst Briefings	129