Askari Bank : Transmission of Quarterly Report for the Period Ended

Contents

Corporate Information 1

Directors' Review 2

Directors' Review (Urdu) 5

Unconsolidated Condensed Interim Statement of Financial Position 7

Unconsolidated Condensed Interim Profit and Loss Account 8

Unconsolidated Condensed Interim Statement of Comprehensive Income 9

Unconsolidated Condensed Interim Statement of Changes in Equity 10

Unconsolidated Condensed Interim Cash Flow Statement 11

Notes to the Unconsolidated Condensed Interim Financial Statements 12

Consolidated Condensed Interim Statement of Financial Position 39

Consolidated Condensed Interim Profit and Loss Account 40

Consolidated Condensed Interim Statement of Comprehensive Income 41

Consolidated Condensed Interim Statement of Changes in Equity 42

Consolidated Condensed Interim Cash Flow Statement 43

Notes to the Consolidated Condensed Interim Financial Statements 44

Corporate Information

Board Of DirectorsBoard Audit CommitteeShariah BoardAuditorsLegal Advisors

Mr. Waqar Ahmed Malik - Chairman Mr. Sarfaraz Ahmed Rehman

Mr. Arif Ur Rehman

Dr. Nadeem Inayat Syed Bakhtiyar Kazmi Mr. Manzoor Ahmed

Mr. Mohammad Aftab Manzoor Mr. Mushtaq Malik

Ms. Zoya Mohsin Nathani Raja Muhammad AbbasMr. Atif R. Bokhari - President & Chief Executive

Mr. Mohammad Aftab Manzoor - Chairman

Dr. Nadeem Inayat

Syed Bakhtiyar Kazmi Mr. Manzoor Ahmed Raja Muhammad AbbasMufti Muhammad Zahid - Chairman Mufti Zakir Hassan Naumani - Member Dr. Lutfullah Saqib - Member

Dr. Muhammad Tahir Mansoori - Resident Shariah Board Member

KPMG Taseer Hadi & Co.

Chartered Accountants

M/s RIAA, Barker Gillette Advocates & Corporate Counselors

Company Secretary

Syed Ali Safdar Naqvi, FCA

Registered OfficeRegistrar & Share Transfer OfficeEntity RatingsWebsite

Social Media

AWT Plaza, The Mall, P. O. Box No. 1084 Rawalpindi - 46000, Pakistan

Tel: (92 51) 8092624, UAN: (92 51) 111 000 787 Fax: (92 51) 2857448

Email:ir@askaribank.com.pk

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: (92 42) 36362061-66 Fax: (92 42) 36300072 Email:info@cdcsrsl.comWebsite:www.cdcsrsl.com

Long Term: AA+

Short Term: A1+

By PACRA

www.askaribank.com

askaribankpakistan

Askari_Bank

askaribankpk

askaribanklimited

AskariBankOfficial

DIRECTORS' REVIEW

Dear Shareholders

The Directors present the unaudited condensed interim unconsolidated financial statements for the quarter ended March 31, 2022.

Economy:

Pakistan's economy continues to recover albeit the unfolding domestic and international scenario causing macroeconomic imbalances, elevated risks and inflation. The geo political tensions and future market trends suggest international commodity prices to rise further, impacting inflation outlook. Though a pass-through to CPI may remain contained due to regulatory relief measures and packages. The State Bank of Pakistan announced a 250 bps increase in policy rate on April 7, 2022. The proactive announcement ahead of the schedule, is targeted to safeguard external sector and price stability. Additional regulatory actions, including rise in interest rate on export refinance scheme and widening the set of import items subject to cash margin, are also indicated to further dilute pressures on inflation and current account. The performance of domestic economy continues on a track and appears aligned with the growth target of ~5 percent for the current fiscal. As the cyclical position returns to a more sustainable neutral stance, the economic growth will be driven primarily by the expansion of the manufacturing capacity. The intensity of internal and external risks has not been fully realized yet and may adversely affect domestic economic activities. Though a reduction in domestic political uncertainty and prudent fiscal policies, will help ensure that Pakistan's robust economic recovery post Covid-19 remains sustainable.

Financial Performance:

The financial results of Askari Bank for the quarter ended March 31, 2022 are summarized as under:

(Rupees in million)

The operating profit for the quarter ended March 31, 2022 amounted to Rs 5.9 billion, a year-on-year increase of 27 percent. Profit after taxation increased by 24 percent and is reported at Rs 3.6 billion. The earnings per share at Rs 2.86 for the current period compares with Rs 2.18 last year.

Net aggregate revenues increased by 7.6 percent to Rs 11.0 billion during the current quarter mainly due to net mark-up income that increased by 11 percent delivered mostly by volumetric growth. Non-mark-up income declined by 2.6 percent due to lesser gain on securities, though fee commissions, dividend income, -2-

foreign exchange and other income increased by 32 percent offsetting the decline in gain on securities.

Non-mark-up expenses for the current period declined by 14 percent mainly due to a reduction in compensation expense upon complete implementation of human capital strategy during the period. Other operating expenses increased by 15 percent over the corresponding quarter reflecting impact of inflation, rupee devaluation and branch expansion. Customer deposits are reported at Rs 997.5 billion; current and saving accounts constituted 81 percent of the total deposit as at March 31, 2022. Gross advances stood at Rs 496.2 billion, a decline of 2.3 percent during the quarter. Non-performing loans registered a slight decline while provision coverage ratio improved from 97 to 98 percent at the quarter end.

The Bank's entity rating was reaffirmed at 'AA+' (Double A Plus) for the long-term by Pakistan Credit Rating Agency Limited (PACRA), with outlook assigned as 'Stable'. The Bank's strong brand and affiliation with

Fauji Foundation are recognized as the key rating drivers, supported by strengths in terms of market penetration, customer confidence, sustainable funding sources and avenues for generating mark-up and non-mark-up based income stream. The short-term rating was maintained at 'A1+' (A One Plus).

Looking ahead, Askari Bank is well positioned for sustainable growth and enhanced value proposition for the long-term shareholders. The Bank will continue to drive business growth supported by enhanced governance, compliance, credit and effective risk management. The Bank plans to grow its market share in retail segment, particularly low-cost deposits and consumer products. Emphasis will remain on boosting trade volumes and increasing penetration in cash management with a focus on SME and commercial clients. The Bank is expanding branch network to widen outreach and better serve its customers. Alongside, investing in human capital and creating a caring culture, process improvement and automation, remains a key priority.

To cope with changing business, Askari Bank has enhanced focus on harnessing digital solutions to ensure customers' banking needs are fully met in a technologically advanced, secure and convenient manner. To this end, the Bank has embarked upon a digital transformation strategy to support world-class digital finance in partnership with Din Global, an international fintech venture. The partnership is set out to create a product that will offer progressive financial services and impact the grassroots of our country by bringing them into the fold of formal economy.

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