National Bank of Pakistan : Transmission of Annual Report For The Year Ended 2022-12-31

TABLE OF CONTENTS

• Vision & Mission
• Corporate Information
• Chairman's Review
• Statement of Compliance with the Public Sector Companies (Corporate Governance) Rules, 2013 and Listed Companies (Code of Corporate Governance) Regulations, 2019
• Review Report to the Members on Statement of Compliance with Code of Corporate Governance
• Statement of Internal Controls
• Shariah Board's Annual Report NBP Aitemaad
• Notice for 74th Annual General Meeting
• Unconsolidated Financial Statements Directors' Report to the Shareholders Independent Auditor's Report Unconsolidated Financial Statements
• Consolidated Financial Statements Directors' Report to the Shareholders Independent Auditor's Report Consolidated Financial Statements
• Pattern of Shareholding
• Form of Proxy

Vision

To be the Nation's leading bank enabling sustainable growth and inclusive development.

Mission

We will achieve our Vision by subscribing to the qualities captured by the word 'IMAGINE'

Integrity is the cornerstone of everything we do

Market leadership is what we aim across all our target sectors

Agility and strategic nimbleness will help us adapt to changing market conditions

Good governance and transparency

Innovation to provide for the customer needs of tomorrow Nation building remains our priority

Employee engagement through a merit-based culture

Chairman's Review

Dear Shareholders,

I am pleased to present this Review Report as the new Chairman of this major National Institution that has been partnering and contributing to Nation's growth for over seven decades.

Your Bank

NBP, stakeholders will join me in appreciating that NBP has always embraced its responsibility in putting the country first as Pakistan's leading financial institution over the decades. The Bank's business model is evolved as an institution which primarily handles the banking needs of the government its entities and their employees. We are now working towards redefining this traditional role to include main stream commercial and retail banking business with more focus on the ever growing SME midmarket segment including the needs of small businesses, agricultural and related farming sector and the supply chain segment which has the capacity to generate short cycle cash flows.

Operating Context

Global economy is facing multiple challenges. The World Bank has slashed the global economic growth outlook to 1.7% for 2023 from its earlier projection of 3%. High inflation has triggered rapid and synchronous monetary policy tightening globally. The spill over of sluggish growth is exacerbating headwinds faced by emerging markets and developing economies.

Pakistan's economy is also confronted with multiple challenges like high inflation, low growth, and low levels of official foreign exchange reserves. To stem the rising inflation, the State Bank of Pakistan has increased the policy rate from 7.5% in September'21 to 17%. GDP growth is projected to fall below 2% in FY23.

The Banking industry is now subject to higher base tax rates, additional taxes related to income from government securities, lower ADR and higher minimum lending targets for various segments.

Conventional banking systems are facing competition from the innovative Fintech and less regulated non-bank institutions.

Let me concede at present, our preparation to meet the aforementioned challenges is not adequate. We need to acquire new technology and enhance our skills set and aggressively strategize to retain our prominent role in the competitive market place.