Financial Statements for the Quarter and

Nine Months Period Ended 30 September 2016 (Un-audited)

Bank Alfalah 1
Quarter and Nine Months Report - 30 September 2016

Contents

Company Information 2

Directors’ Review 4

Unconsolidated Condensed Interim Statement of Financial Position 9

Unconsolidated Condensed Interim Profit and Loss Account (Un-audited) 10

Unconsolidated Condensed Interim Statement of Comprehensive Income (Un-audited) 11

Unconsolidated Condensed Interim Cash Flow Statement (Un-audited) 12

Unconsolidated Condensed Interim Statement of Changes in Equity (Un-audited) 13

Notes to and Forming part of the Unconsolidated Condensed Interim
Financial Information (Un-audited) 14

Consolidated Condensed Interim Statement of Financial Position 32

Consolidated Condensed Interim Profit and Loss Account (Un-audited) 33

Consolidated Condensed Interim Statement of Comprehensive Income (Un-audited) 34

Consolidated Condensed Interim Cash Flow Statement (Un-audited) 35

Consolidated Condensed Interim Statement of Changes in Equity (Un-audited) 36

Notes to and Forming part of the Consolidated Condensed Interim
Financial Information (Un-audited) 37

Branch Network 53
2

Company Information

Board of Directors Board Strategy and Finance Committee

HH Sheikh Hamdan Bin Mubarak Al Nahayan Abdulla Khalil Al Mutawa

Chairman Chairman

Abdulla Nasser Hawaileel Al-Mansoori Khalid Mana Saeed Al Otaiba

Director Director

Abdulla Khalil Al Mutawa Efstratios Georgios Arapoglou

Director Director

Khalid Mana Saeed Al Otaiba Khalid Qurashi

Director Director

Efstratios Georgios Arapoglou Atif Bajwa

Director Chief Executive Officer

Khalid Qurashi M. Iftikhar Shabbir

Director Secretary

Kamran Y. Mirza Board Risk Management Committee

Director
Khalid Mana Saeed Al Otaiba
Atif Bajwa Chairman
Chief Executive Officer
Abdulla Khalil Al Mutawa
Board Audit Committee Director

Kamran Y. Mirza Khalid Qurashi

Chairman Director

Abdulla Khalil Al Mutawa Atif Bajwa

Director Chief Executive Officer

Khalid Mana Saeed Al Otaiba Farhan Ali

Director Secretary

Efstratios Georgios Arapoglou

Director

Tahir Khurshid
Secretary
Bank Alfalah 3
Quarter and Nine Months Report - 30 September 2016

Board Human Resources & Nomination Committee

Chairman Chairman

Kamran Y. Mirza
Kamran Y. Mirza

Yaqoob Khan

Aasim Wajid Jawad

Imran Zafar

Khawaja Muhammad Ahmad

Mohib Hasan Khan

 4

Directors’ Review

On behalf of the Board of Directors, I am pleased to present the unconsolidated condensed interim financial information of the
Bank for the quarter and nine months period ended September 30, 2016.

Nine months period Nine months period

ended September 30, ended September
2016 30, 2015
(Rupees in ’000)
Profit before provisions and taxation 10,956,055 11,635,746
Provisions against loans and advances - net 267,108 1,260,759
Provision for diminution in the value of investments 67,849 92,342
334,957 1,353,101
Profit before Taxation 10,621,098 10,282,645
Taxation 4,354,849 4,238,142
Profit after taxation 6,266,249 6,044,503
Earnings per share – basic Rs. 3.93 Rs. 3.80
Performance Review:

The Bank’s Profit before taxation for the nine months period ended September 30, 2016 was recorded at Rs. 10.621 Billion, as
against Rs. 10.283 Billion for the corresponding period last year, improving by 3 percent.

During the quarter under review, the banking industry witnessed maturities of investments in high yielding Government bonds
which had to be replaced with avenues offering relatively lower yields in line with prevalent market rates.

Our year-on-year net interest income levels reflected an improvement of 2 percent during the current period, as reduction in mark
up expenses outweighed the reduction in top line revenues due to reduction in yields on Government bonds. Non fund income
improved marginally against the level achieved in the prior corresponding period.

Despite lower interest rates directly impacting core revenues, growth in overall bottom line profitability was facilitated by improved
recoveries and lower gross provisioning charge. The Bank’s gross recoveries against the prior period improved by 52 percent, while
gross provisioning charge lower by 14 percent. As at the period end, the Bank’s coverage ratio continues to remain adequate at 83
percent, while the infection ratio stands at 5.4 percent, one of the lowest amongst top tier banks.

Total operating expenses registered an increase of 7 percent, mainly attributable to the Bank’s investment in improving its
technological infrastructure, strategic positioning initiatives, and marketing and brand related spending. The Bank remains
committed to further strengthen its services infrastructure and expand its financial footprint in order to provide world class
banking and financial services to its ever expanding customer base.

Earnings per share for the period were reported at Rs. 3.93 as against Rs. 3.80 for the previous corresponding period, improving
by 3 percent.

As at the period end, the Bank’s total assets were reported at Rs. 870.405 Billion, with net Investments and net Advances
representing 47 percent and 38 percent of the total asset base. Deposits at the period end were reported at Rs. 641.441 Billion,
remaining at a similar level as that of December 2015, while Borrowings declined to Rs. 128.032 Billion as against Rs. 172.393 Billion
at December end. The Bank’s ADR continues to remain at a sound level of 54 percent, one of the best in the industry.

Economic Outlook:

Pakistan’s macroeconomic environment outlook continues to remain positive. The record-high foreign exchange reserves have led
to consistency and stability in the foreign exchange market. However, there remains a risk that the current account deficit may
widen further, mainly on account of declining exports and rising imports. The China Pakistan Economic Corridor (CPEC) related
projects continue to gather momentum, and this bodes well for the economy in general, which is expected to further expand on the
back of improving industrial activity, especially construction and power generation, and rising demand for allied services. What will
support this growth phase, are stable macro conditions that have been shored up by low oil prices, which are expected to remain
supportive for the next several years.
Bank Alfalah 5
Quarter and Nine Months Report - 30 September 2016

Low interest rates, low import prices, and improved energy availability are expected to further facilitate the manufacturing sector
and improve general business sentiments. The Pakistan Stock Market’s reclassification to the MSCI’s emerging markets index in June
2016 has been a positive step towards boosting investors’ confidence. The consistent improvement to the security and political
environment shall remain key factors in sustaining economic growth. The IBA-SBP Consumer Confidence Survey of September 2016,
indicates an improvement in current and expected economic conditions, and a significant rise in consumer confidence.

Liquidity conditions in the money market have remained comfortable mainly due to retirement of government borrowing to the
scheduled banks. Resultantly, lower volatility has been witnessed in the interbank market, with overnight money market repo rates
remaining close to the policy rate. Stability in market interest rates should also help the upcoming credit cycle for working capital
and fixed investment.

Year-on-year CPI inflation rose to 3.6 percent in August 2016 from 1.8 percent in August 2015, while the average inflation during
the first two months of the current fiscal year was more than double the same period last year. Core inflation during this period
was also higher than the corresponding period last year. For the remaining months of the current fiscal year, we expect higher
inflation than seen in FY16; however, given projections that oil prices will remain soft, we think average inflation will remain below
5 to 6 percent till FY18.

In view of this, the Central Bank kept the policy rate unchanged during the quarter.

While the global growth outlook for 2016 remains subdued, uncertainty is pervasive. The expected interest rate hike by the US Fed,
the economic slowdown in China, the likely changes in the political landscape in Western Europe, and the aftermath of Brexit, will
continue to dominate sentiments in global financial and commodity markets.

Against this backdrop, Pakistan’s economic growth is set to increase further in FY17. The likely impetus should come from rising
investment under PSDP and CPEC; improved energy availability to industry; lagged impact of prudent monetary policy; healthy
private sector credit uptake; and improving law and order situation. The GDP growth target for FY17 stands at 5.7 percent, which is
higher than the growth of 4.7 percent achieved for FY16.

Having said this, banking sector margins shall remain under pressure, given the low interest rate regime. The Bank remains focused
on managing its lending and investment strategy cautiously, with an objective of maximizing shareholder returns.

Credit Rating

The Bank’s credit rating was maintained at ‘AA’ (double A) Entity Rating for the Long Term and A1+ (A one plus) for the Short Term,
by PACRA at June 30, 2016. These ratings denote a very low expectation of credit risk, a strong capacity for timely payment of
financial commitments in the long term and the highest capacity for timely repayment in the short term. The Bank’s outlook has
also been maintained as positive. The unsecured subordinated debt (Term Finance Certificates) of the Bank carries a credit rating
of AA- (double A minus).

Acknowledgments:

On behalf of the Board, I would once again like to thank the State Bank of Pakistan, the Ministry of Finance and other regulatory
authorities for their continuous guidance and support, our shareholders and our valued customers for their counsel and patronage.

I value the dependable and dedicated contribution of our staff, both locally and overseas. With this continued level of promise,
motivation and diligent work, I am sure that the Bank shall be able to achieve new levels of progress in the days to come.

ATIF BAJWA
Director & Chief Executive Officer
Date: October 26, 2016
Place: Abu Dhabi
6
Bank Alfalah 7
Quarter and Nine Months Report - 30 September 2016
8
Bank Alfalah 9
Quarter and Nine Months Report - 30 September 2016

Unconsolidated Condensed Interim

Statement of Financial Position
As at 30 September 2016
Note 30 September 31 December
2016 2015
(Un-audited) (Audited)
(Restated)
(Rupees in '000)
ASSETS
Cash and balances with treasury banks 63,640,399 62,368,790
Balances with other banks 8,785,347 16,552,207
Lendings to financial institutions 7 26,331,504 27,626,350
Investments - net 8 409,547,135 423,099,734
Advances - net 9 327,718,113 334,158,739
Operating fixed assets 10 17,977,997 17,241,968
Deferred tax assets - -
Other assets 16,404,941 21,559,733
870,405,436 902,607,521

LIABILITIES
Bills payable 11,419,727 9,733,929
Borrowings 11 128,031,511 172,393,198
Deposits and other accounts 12 641,441,239 640,188,735
Sub-ordinated loans 9,980,000 9,983,000
Liabilities against assets subject to finance lease - -
Deferred tax liabilities 2,645,561 1,824,054
Other liabilities 17,901,309 15,131,430
811,419,347 849,254,346

NET ASSETS 58,986,089 53,353,175

REPRESENTED BY
Share capital 15,952,076 15,898,062
Reserves 15,549,382 14,164,120
Unappropriated profit 15,810,117 12,362,596
47,311,575 42,424,778
Surplus on revaluation of assets - net of tax 11,674,514 10,928,397
58,986,089 53,353,175

CONTINGENCIES AND COMMITMENTS 13

The annexed notes 1 to 19 and Annexure I form an integral part of the unconsolidated condensed interim financial
information.

Chief Executive Officer

10

Unconsolidated Condensed Interim

Profit and Loss Account (Un-Audited)
for the Quarter and Nine Months Period Ended 30 September 2016
Note Quarter Nine months Quarter Nine months
ended period ended ended period ended
30 September 30 September 30 September 30 September
2016 2016 2015 2015
---------------------------(Rupees in '000)--------------------------
Mark-up / return / interest earned 13,735,289 43,447,882 14,972,888 46,216,123
Mark-up / return / interest expensed 6,702,127 21,761,153 7,639,912 24,975,902
Net mark-up / interest income 7,033,162 21,686,729 7,332,976 21,240,221

(Reversal) / provision against non-performing

loans and advances - net (76,467) 267,108 124,356 1,260,745
Provision for diminution in value of investments - net 2,962 67,849 18,621 92,342
Bad debts written-off directly - - 14 14
(73,505) 334,957 142,991 1,353,101
Net mark-up / interest income after provisions 7,106,667 21,351,772 7,189,985 19,887,120

Non mark-up / interest income

Fee, commission and brokerage income 992,825 3,366,369 1,084,809 3,299,089
Dividend income 147,910 450,901 78,483 418,283
Income from dealing in foreign currencies 274,856 888,133 436,704 1,165,061
Gain on sale of securities - net 369,364 1,699,179 222,083 1,293,179
Unrealised (loss) / gain on revaluation of investments
classified as held for trading - net (40,643) (16,632) 133,150 231,651
Other income 178,052 538,973 131,483 481,240
Total non mark-up / interest income 1,922,364 6,926,923 2,086,712 6,888,503
9,029,031 28,278,695 9,276,697 26,775,623
Non mark-up / interest expenses
Administrative expenses 5,927,709 17,458,956 5,477,002 15,914,711
(Reversal) / provision against off-balance sheet obligations (5,446) 9,643 (3,689) (5,629)
Provision / (reversal) against other assets 3,599 (41,024) 35,800 307,774
Other charges 74,046 230,022 62,002 276,122
Total non mark-up / interest expenses 5,999,908 17,657,597 5,571,115 16,492,978
3,029,123 10,621,098 3,705,582 10,282,645
Extra ordinary / unusual items - - - -
Profit before taxation 3,029,123 10,621,098 3,705,582 10,282,645

Taxation 16
- Current 1,309,358 4,018,458 1,329,476 4,029,819
- Deferred (192,952) (226,609) 36,222 (359,490)
- Prior years - 563,000 - 567,813
1,116,406 4,354,849 1,365,698 4,238,142
Profit after taxation 1,912,717 6,266,249 2,339,884 6,044,503

(Rupees)

Basic earnings per share 14 1.20 3.93 1.47 3.80

Diluted earnings per share 14 1.19 3.91 1.47 3.80

The annexed notes 1 to 19 and Annexure I form an integral part of the unconsolidated condensed interim financial information.

Chief Executive Officer

Bank Alfalah 11
Quarter and Nine Months Report - 30 September 2016

Unconsolidated Condensed Interim

Statement of Comprehensive Income (Un-Audited)
for the Quarter and Nine Months Period Ended 30 September 2016
Quarter Nine months Quarter Nine months
ended period ended ended period ended
30 September 30 September 30 September 30 September
2016 2016 2015 2015
-----------------------(Rupees in '000)-----------------------

Profit after taxation 1,912,717 6,266,249 2,339,884 6,044,503

Other comprehensive income

Items that are or may be reclassified subsequently

to profit and loss account

Exchange differences on translation of net

investment in foreign branches 6,486 13,783 8,774 48,869

Comprehensive income - transferred to unconsolidated

condensed interim statement of changes in equity 1,919,203 6,280,032 2,348,658 6,093,372

Components of comprehensive income not

reflected in equity

(Deficit) / surplus on revaluation of available-for-sale

securities - net of tax (611,353) 808,471 475,398 2,962,293

The annexed notes 1 to 19 and Annexure I form an integral part of the unconsolidated condensed interim financial information.

Chief Executive Officer

12

Unconsolidated Condensed Interim

Cash Flow Statement (Un-Audited)
for the Nine Months Period Ended 30 September 2016
Nine months period ended
30 September 30 September
Note
2016 2015
(Rupees in '000)
CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxation 10,621,098 10,282,645
Less: Dividend income (450,901) (418,283)
10,170,197 9,864,362
Adjustments for:
Depreciation 1,258,394 1,338,029
Amortisation 255,553 197,549
Provision against non-performing loans and advances - net 267,108 1,260,745
Provision for diminution in the value of investments - net 67,849 92,342
Provision / (reversal) against off-balance sheet obligations 9,643 (5,629)
(Reversal) / provision against other assets (41,024) 307,774
Unrealised loss / (gain) on revaluation of investments classifiedas
held for trading - net 16,632 (231,651)
Bad debts written-off directly - 14
Gain on sale of operating fixed assets - net (19,272) (6,324)
Charge for defined benefit plan 211,678 223,326
2,026,561 3,176,175
12,196,758 13,040,537
(Increase) / decrease in operating assets
Lendings to financial institutions (5,419,174) (11,714,876)
Held-for-trading securities (2,471,794) (383,927)
Advances 6,173,518 (12,776,202)
Other assets (excluding tax recoverable and dividend receivable) 5,182,607 8,213,312
3,465,157 (16,661,693)
Increase / (decrease) in operating liabilities
Bills payable 1,685,798 613,335
Borrowings (44,307,879) 57,789,426
Deposits and other accounts 1,252,504 (19,965,838)
Other liabilities (excluding current taxation) 1,337,027 (805,486)
(40,032,550) 37,631,437
(24,370,635) 34,010,281
Income tax paid (2,807,427) (1,075,851)
Net cash (used in) / generated from operating activities (27,178,062) 32,934,430

CASH FLOW FROM INVESTING ACTIVITIES

Net investments in available-for-sale securities (15,404,241) (35,847,964)
Net investments in held-to-maturity securities 32,484,527 (186,224)
Disposal / (investment) in subsidiaries and associates 95,790 (4,827)
Dividend income received 402,172 360,480
Investments in operating fixed assets (2,094,115) (1,491,355)
Proceeds from sale of operating fixed assets 28,073 22,007
Net cash generated / (used in) investing activities 15,512,206 (37,147,883)

CASH FLOW FROM FINANCING ACTIVITIES

Redemption of sub-ordinated loans (3,000) (3,000)
Proceeds from issue of shares 84,895 41,836
Dividend paid (1,585,285) (3,176,177)
Net cash used in from financing activities (1,503,390) (3,137,341)
Exchange difference on translation of the net investments in foreign branches 13,783 48,869
Decrease in cash and cash equivalents (13,155,463) (7,301,925)
Cash and cash equivalents at the beginning of the period 93,459,547 65,536,606
Effect of exchange rate changes on cash and cash equivalents 136,174 343,958
93,595,721 65,880,564
Cash and cash equivalents at the end of the period 15 80,440,258 58,578,639
The annexed notes 1 to 19 and Annexure I form an integral part of the unconsolidated condensed interim financial
information.

Chief Executive Officer

Bank Alfalah 13
Quarter and Nine Months Report - 30 September 2016

Unconsolidated Condensed Interim

Statement of Changes In Equity (Un-Audited)
for the Nine Months Period Ended 30 September 2016
Capital Reserves Revenue Reserves
Employee
Exchange
Share Statutory Share Option Unappropriated
Share Premium Translation Total
Capital Reserve* Compensation profit
Reserve
Reserve
----------------------------------------------------------(Rupees in '000)----------------------------------------------------------
Balance as at 1 January 2015 15,872,427 4,285,556 6,636,342 1,362,465 53,663 9,613,374 37,823,827
Changes in equity for the nine months period ended 30 September 2015
Total comprehensive income for the period
Profit after taxation for the nine months period ended 30 September 2015 - - - - - 6,044,503 6,044,503
Other comprehensive income for the nine months period ended 30 September 2015
Exchange differences on translation of net investment in foreign branches - - - 48,869 - - 48,869
- - - 48,869 - 6,044,503 6,093,372
Transfer to statutory reserve - - 1,208,901 - - (1,208,901) -
Transfer from surplus on revaluation of fixed assets - net of tax - - - - - 26,088 26,088
Transactions with owners, recorded directly in equity
Final cash dividend for the year ended 31 December 2014 @ 20% - - - - - (3,174,485) (3,174,485)
Shares issued during the period 25,635 16,201 - - - - 41,836
Recognition of fair value of share based payments on grant date during the period - - - - 125,625 - 125,625
Unamortised portion of deferred employee compensation expense - - - - (53,249) - (53,249)
Balance as at 30 September 2015 15,898,062 4,301,757 7,845,243 1,411,334 126,039 11,300,579 40,883,014
Changes in equity for the quarter ended 31 December 2015
Total comprehensive income for the period
Profit after taxation for the quarter ended 31 December 2015 - - - - - 1,478,307 1,478,307
Other comprehensive income for the quarter ended 31 December 2015
Exchange differences on translation of net investment in foreign branches - - - 161,632 - - 161,632
Remeasurement of defined benefit plans - - - - - (198,962) (198,962)
Related tax charge - - - - - 69,637 69,637
- - - 161,632 - 1,348,982 1,510,614
Transfer to statutory reserve - - 295,661 - - (295,661) -
Transfer from surplus on revaluation of fixed assets - net of tax - - - - - 8,696 8,696
Transactions with owners, recorded directly in equity
Recognition of fair value of share based payments on grant date during the period - - - - (6,375) - (6,375)
Adjustment to unamortised portion of deferred employee compensation expense - - - - 28,829 - 28,829
Transfer of Share Premium on issuance of shares under Stock Option Scheme - 27,891 - - (27,891) - -
Balance as at 31 December 2015 15,898,062 4,329,648 8,140,904 1,572,966 120,602 12,362,596 42,424,778
Changes in equity for the nine months period ended 30 September 2016
Total comprehensive income for the period
Profit after taxation for the nine months period ended 30 September 2016 - - - - - 6,266,249 6,266,249
Other comprehensive income for the nine months period ended 30 September 2016
Exchange differences on translation of net investment in foreign branches - - - 13,783 - - 13,783
- - - 13,783 - 6,266,249 6,280,032
Transfer to statutory reserve - - 1,253,250 - - (1,253,250) -
Transfer from surplus on revaluation of fixed assets - net of tax - - - - - 24,328 24,328
Transactions with owners, recorded directly in equity
Final cash dividend for the year ended 31 December 2015 @ 10% - - - - - (1,589,806) (1,589,806)
Shares issued during the period 54,014 30,881 - - - - 84,895
Recognition of fair value of share based payments on grant date during the period - - - - 126,102 - 126,102
Adjustment to unamortised portion of deferred employee compensation expense - - - - (38,754) - (38,754)
Transfer of Share Premium on issuance of shares under Stock Option Scheme - 56,597 - - (56,597) - -
Balance as at 30 September 2016 15,952,076 4,417,126 9,394,154 1,586,749 151,353 15,810,117 47,311,575

* This represents reserve created under section 21(i) (a) of the Banking Companies Ordinance, 1962.
The annexed notes 1 to 19 and Annexure I form an integral part of the unconsolidated condensed interim financial information.

Chief Executive Officer

14

Notes to and Forming Part of the Unconsolidated

Condensed Interim Financial Information (Un-Audited)
for the Nine Months Period Ended 30 September 2016
1 STATUS AND NATURE OF BUSINESS

Bank Alfalah Limited (the Bank) is a banking company incorporated in Pakistan on June 21, 1992 as a
public limited company under the Companies Ordinance, 1984. It commenced its banking operations on
November 1, 1992. The Bank's registered office is located at B. A. Building, I. I. Chundrigar Road, Karachi
and is listed on the Pakistan Stock Exchange (formerly Karachi, Lahore and Islamabad Stock Exchanges).
The Bank is engaged in banking services as described in the Banking Companies Ordinance, 1962 and is
operating through 486 conventional banking branches including 13 sub branches (2015: 484 branches
including 12 sub branches), 10 overseas branches (2015: 10 branches), 158 Islamic banking branches (2015:
158 branches) and 1 offshore banking unit (2015: 1 unit).
PACRA has assigned a long term credit rating of AA [Double A] and a short term credit rating of A1+ (A
one plus) to the Bank as at June 2016.

2 BASIS OF PRESENTATION

2.1 In accordance with the directives of the Federal Government regarding the shifting of the banking
system to Islamic modes, the State Bank of Pakistan has issued various circulars from time to time.
Permissible form of trade-related modes of financing includes purchase of goods by banks from their
customers and immediate resale to them at appropriate mark-up in price on deferred payment basis. The
purchases and sales arising under these arrangements are not reflected in the unconsolidated condensed
interim financial information as such, but are restricted to the amount of facility actually utilised and the
appropriate portion of mark-up thereon.
2.2 Key financial figures of the Islamic Banking branches are disclosed in Annexure I to this unconsolidated
condensed interim financial information.
2.3 The disclosures made in this unconsolidated condensed interim financial information have been limited
based on the format prescribed by the State Bank of Pakistan through BSD Circular Letter No. 2
dated May 12, 2004 and the requirements of International Accounting Standard 34, "Interim Financial
Reporting". They do not include all of the information required for the full annual financial statements
and this unconsolidated condensed interim financial information should be read in conjunction with the
unconsolidated financial statements of the Bank for the year ended December 31, 2015.

3 STATEMENT OF COMPLIANCE

3.1 This unconsolidated condensed interim financial information has been prepared in accordance with
the requirements of International Accounting Standard 34 "Interim Financial Reporting", the provisions
of Companies Ordinance, 1984, Banking Companies Ordinance, 1962 and the directives issued by the
Securities and Exchange Commission of Pakistan (SECP) and the State Bank of Pakistan (SBP). In case
where requirements differ, provisions of the Companies Ordinance, 1984, Banking Companies Ordinance,
1962 and the said directives have been followed.

4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

4.1 The principal accounting policies and the methods of computation adopted in the preparation of this
unconsolidated condensed interim financial information are same as those applied in the preparation
of the financial statements of the Bank for the year ended December 31, 2015 except for the following:
Bank Alfalah 15
Quarter and Nine Months Report - 30 September 2016

Non-banking assets acquired in satisfaction of claims

On January 1, 2016, the State Bank of Pakistan (SBP) vide BPRD circular No. 1 of 2016 issued ‘Regulations
for Debt Property Swaps’. These regulations require banks to measure non-banking assets acquired
in satisfaction of claims at revalued amounts less accumulated depreciation thereon. The valuation of
properties acquired under this head is to be conducted regularly, by professionally qualified evaluators
appearing on the approved panel of the 'Pakistan Banks Association', so as to ensure that their net
carrying value does not materially differ from their fair value. Any surplus arising on revaluation of such
properties is transferred to the 'surplus on revaluation of fixed assets' account, while any deficit arising
on revaluation is charged to profit and loss account directly. In addition, all direct costs, including legal
fees and transfer costs linked with transferring the title of the property to banks is accounted as an
expense in the profit and loss account. Furthermore, under these regulations, revaluation surplus on
such assets shall not be admissible for calculating bank’s Capital Adequacy Ratio (CAR) and exposure
limits under the Prudential Regulations. However, the surplus can be adjusted upon realization of sale
proceeds.
In line with these regulations, the Bank, effective January 1, 2016 has changed its accounting policy for
recording of non-banking assets acquired in satisfaction of claims to incorporate the aforementioned
requirements. Prior to this change in accounting policy, Non-banking assets acquired in satisfaction of
claims were carried at cost less impairment, if any. Had the accounting policy not been changed, Non-
banking assets (included in Other Assets in the statement of financial position) would have been lower
by Rs. 37.46 million, surplus on revaluation of assets and deferred tax liabilities would have been lower
by Rs. 24.47 million and Rs. 12.99 million respectively, and profit after tax would have been higher by Rs.
1.006 million.

5 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The basis and methods used for critical accounting estimates and judgements adopted in this
unconsolidated condensed interim financial information are same as those applied in the preparation of
the annual financial statements of the Bank for the year ended December 31, 2015.

6 FINANCIAL RISK MANAGEMENT

The Bank's Financial Risk Management objectives and policies are consistent with those disclosed in the
annual financial statements for the year ended December 31, 2015.

7 LENDINGS TO FINANCIAL INSTITUTIONS Note 30 September 31 December

2016 2015
(Un-audited) (Audited)
(Restated)
(Rupees in '000)

Call money lendings 7.1 8,014,512 15,265,899

Bai Muajjal 7.2 10,098,580 12,360,451
Repurchase agreement lendings 7.3 8,218,412 -
26,331,504 27,626,350

7.1 This represents lending to financial institutions at interest rate range from 0.25% to 9.00% per annum
(December 2015: 0.40% to 12.00% per annum) with maturities upto February 2017 (December 2015:
November 2016).
7.2 This represents Bai Muajjal agreements entered into with State Bank of Pakistan (SBP), whereby the Bank
sold Sukuks having carrying value of Rs. 9,875 million on deferred payment basis. The rates of return
range from 5.69% to 5.97% per annum (December 2015: 5.99% to 8.26%), and these are due to mature
by March 2017 (December 2015: March 2016).
7.3 This represents short term lending to financial institutions against investment securities. These carry
markup rates upto 5.80% per annum (December 2015: NIL) with maturities upto October 2016 (December
31, 2015: November 2016).
16

8 INVESTMENTS - NET

8.1 Investments by types Note 30 September 2016 (Un-audited) 31 December 2015 (Audited) (Restated)
Held by Given as Held by Given as
Total Total
Bank collateral Bank collateral
------------------------------------------(Rupees in '000) ------------------------------------------
Held-for-trading securities
Market Treasury Bills 17,257,194 - 17,257,194 13,480,197 - 13,480,197
Pakistan Investment Bonds 3,354,311 - 3,354,311 2,423,862 - 2,423,862
Overseas Bonds 555,321 - 555,321 2,990,933 - 2,990,933
Fully paid up ordinary shares / units - Listed 627,021 - 627,021 197,998 - 197,998
21,793,847 - 21,793,847 19,092,990 - 19,092,990
Available-for-sale securities
Market Treasury Bills 41,847,138 3,569,549 45,416,687 78,391,879 494,563 78,886,442
Pakistan Investment Bonds 107,769,397 86,238,957 194,008,354 28,914,704 128,577,363 157,492,067
Fully paid up ordinary shares / units - Listed 5,388,689 - 5,388,689 5,000,753 - 5,000,753
Fully paid up ordinary shares - Unlisted 82,055 - 82,055 4,426,617 - 4,426,617
Term Finance Certificates 518,056 - 518,056 829,594 - 829,594
Preference Shares - Listed 108,835 - 108,835 108,835 - 108,835
Preference Shares - Unlisted 25,000 - 25,000 325,000 - 325,000
Redeemable Participating Certificates 486,270 - 486,270 - - -
Pakistan Euro Bonds 1,382,310 - 1,382,310 2,409,043 - 2,409,043
Overseas Bonds 10,518,171 2,804,839 13,323,010 4,804,159 - 4,804,159
Sukuk Bonds 37,853,494 - 37,853,494 33,280,442 - 33,280,442
205,979,415 92,613,345 298,592,760 158,491,026 129,071,926 287,562,952
Held-to-maturity securities
Market Treasury Bills 2,544,128 - 2,544,128 - - -
Pakistan Investment Bonds 31,885,188 - 31,885,188 66,180,991 - 66,180,991
Other Federal Government Securities - Bai
8.2 26,002,520 - 26,002,520 26,002,520 - 26,002,520
Muajjal
Term Finance Certificates 524,266 - 524,266 524,266 - 524,266
Pakistan Euro Bonds 706,433 - 706,433 3,347,785 - 3,347,785
Overseas Bonds 10,160,983 - 10,160,983 7,920,557 - 7,920,557
Sukuk Bonds 3,898,890 - 3,898,890 4,230,816 - 4,230,816
75,722,408 - 75,722,408 108,206,935 - 108,206,935
Subsidiaries
Alfalah Securities (Private) Limited 1,126,000 - 1,126,000 1,126,000 - 1,126,000
Alfalah GHP Investment Management Limited 130,493 - 130,493 130,493 - 130,493
Alfalah GHP Value Fund - - - 100,000 - 100,000
Alfalah GHP Cash Fund 525,474 - 525,474 525,474 - 525,474
1,781,967 - 1,781,967 1,881,967 - 1,881,967
Associates
Alfalah Insurance Limited 68,990 - 68,990 68,990 - 68,990
Sapphire Wind Power Company Limited 978,123 - 978,123 978,123 - 978,123
Alfalah GHP Money Market Fund 50,882 - 50,882 46,672 - 46,672
Alfalah GHP Income Multiplier Fund 250,000 - 250,000 250,000 - 250,000
Alfalah GHP Sovereign Fund 200,000 - 200,000 200,000 - 200,000
Alfalah GHP Islamic Stock Fund 250,000 - 250,000 250,000 - 250,000
Appollo Pharma Limited 790,400 - 790,400 790,400 - 790,400
2,588,395 - 2,588,395 2,584,185 - 2,584,185
Investments at cost 307,866,032 92,613,345 400,479,377 290,257,103 129,071,926 419,329,029
Provision for diminution in value of investments 8.3 (2,046,864) - (2,046,864) (6,345,811) - (6,345,811)
Investments (net of provisions) 305,819,168 92,613,345 398,432,513 283,911,292 129,071,926 412,983,218

Surplus on revaluation of
held for trading securities - net (16,632) - (16,632) 229,063 - 229,063
Surplus on revaluation of
available for sale securities-net 10,972,239 159,015 11,131,254 9,365,358 522,095 9,887,453

Total investments 316,774,775 92,772,360 409,547,135 293,505,713 129,594,021 423,099,734

Bank Alfalah 17
Quarter and Nine Months Report - 30 September 2016

8.2 This represents Bai Muajjal agreements entered into with Ministry of Finance (MoF), whereby the Bank
sold Sukuks having carrying value of Rs. 25,475 million on deferred payment basis. The rate of return on
these transactions is 5.99% per annum (December 2015: 5.99%). They are due to mature by November
2016 (December 2015: November 2016).

Note 30 September 31 December

2016 2015
(Un-audited) (Audited)
8.3 Movement in provision for diminution in value of investments (Rupees in '000)

Opening balance 6,345,811 6,216,757

Charge for the period / year 67,849 136,691
Provision adjusted / written off during the period / year (4,366,796) (7,637)
Closing balance 2,046,864 6,345,811

8.4 Particulars of provision for diminution in value of

investments by type and segment

Available for sale securities

Listed companies / mutual funds
- Fully paid up ordinary shares / units
- First Dawood Investment Bank Limited 15,000 15,000

- Preference shares
- Agritech Limited 108,835 108,835

Unlisted companies
- Fully paid up ordinary shares of Rs. 10 each
- Pakistan Export Finance Guarantee Agency Limited 5,725 5,725
- Al-Hamra Avenue (Private) Limited 50,000 50,000
- Warid Telecom (Private) Limited (Related party) 8.5 - 4,366,796
- Pakistan Mobile Communications Limited (Related party) 3,936 -

Unlisted securities
- Term finance certificates / sukuks
- Azgard Nine Limited 76,220 76,220
- Security Leasing Corporation Limited I 6,418 6,418
- Security Leasing Corporation Limited II 23,105 23,105
- New Allied Electronics 2,185 2,185
- Fauji Akbar Portia Marine Terminals Limited 127,516 102,069
- Quetta Textile Mills Limited 72,619 37,242

- Preference shares
- Trust Investment Bank Limited 25,000 25,000

Held to maturity securities

Unlisted securities
- Term finance certificates / sukuk bonds
- Agritech Limited 499,586 499,586
- BRR Guardian Modaraba 37,151 34,062
- Security Leasing Corporation Limited 29,245 29,245
- Sitara Peroxide (Private) Limited 113,643 113,643
- Zulekha Textile Mills 24,680 24,680

Investment in subsidiaries

Unlisted company
- Fully paid up ordinary shares of Rs. 10 each
- Alfalah Securities (Private) Limited 826,000 826,000

2,046,864 6,345,811
18

8.5 During the current period, the existing shareholders of Warid Telecom (Private) Limited including the
Bank transferred their holding in Warid Telecom (Private) Limited to Pakistan Mobile Communications
Limited (PMCL), in lieu of acquiring an overall stake of 15 percent in PMCL. This development was in
furtherance of the Acquisition Agreement dated November 26, 2015, as referred to in note 9.11.1 to the
Bank’s annual financial statements for the year ended December 31, 2015.
The legal merger of the two companies is expected to be completed in the last quarter of 2016 subject
to the fulfilment of the required legal processes of amalgamation in Pakistan.
Pursuant to the said transfer, the Bank has received 2,223,452 shares of Rs. 10 each in PMCL in lieu of its
holding in Warid Telecom (Private) Limited (pre-acquisition). As a result of this share exchange, the Bank
has recorded the shares acquired in PMCL while its investment in Warid and the related provision held
thereagainst stands de-recognised.

Note 30 September 31 December

2016 2015
(Un-audited) (Audited)
(Restated)
9 ADVANCES - NET (Rupees in '000)

Loans, cash credits, running finances, etc.

- In Pakistan 272,538,228 278,764,277
- Outside Pakistan 11,439,756 11,007,287
283,977,984 289,771,564
Net investment in finance lease
- In Pakistan 3,954,807 3,638,627
- Outside Pakistan - -
3,954,807 3,638,627

Islamic financing and related assets (gross) A-I.1 43,370,543 43,062,240

Bills discounted and purchased (excluding market treasury bills)

- Payable in Pakistan 4,556,988 6,186,509
- Payable outside Pakistan 8,245,941 7,692,258
12,802,929 13,878,767
344,106,263 350,351,198
Provision against advances 9.2
- Specific provision against non-performing advances (15,575,046) (15,452,555)
- General provision against advances (813,104) (739,904)
(16,388,150) (16,192,459)
327,718,113 334,158,739
Bank Alfalah 19
Quarter and Nine Months Report - 30 September 2016

9.1 Advances include Rs. 18,736 million (2015: Rs. 18,455 million) which have been placed under non-performing status as detailed below:

30 September 2016 (Un-audited)

Classified Advances Provision Required Provision Held
Domestic Overseas Total Domestic Overseas Total Domestic Overseas Total
------------------------------------------------(Rupees in '000)---------------------------------------------------
Category of classification

Other Assets Especially

Mentioned (Agri Financing) 155,867 - 155,867 3,729 - 3,729 3,729 - 3,729
Substandard 1,764,338 - 1,764,338 462,026 - 462,026 462,026 - 462,026
Doubtful 3,801,218 - 3,801,218 2,347,154 - 2,347,154 2,347,154 - 2,347,154
Loss 12,668,667 345,435 13,014,102 12,515,992 246,145 12,762,137 12,515,992 246,145 12,762,137
18,390,090 345,435 18,735,525 15,328,901 246,145 15,575,046 15,328,901 246,145 15,575,046

31 December 2015 (Audited)

Classified Advances Provision Required Provision Held
Domestic Overseas Total Domestic Overseas Total Domestic Overseas Total
------------------------------------------------(Rupees in '000)---------------------------------------------------
Category of classification

Other Assets Especially

Mentioned (Agri Financing) 115,219 - 115,219 2,547 - 2,547 2,547 - 2,547
Substandard 2,052,587 54,595 2,107,182 524,432 70,795 595,227 524,432 70,795 595,227
Doubtful 2,554,443 5,506 2,559,949 1,502,617 1,587 1,504,204 1,502,617 1,587 1,504,204
Loss 13,110,724 562,325 13,673,049 12,936,185 414,392 13,350,577 12,936,185 414,392 13,350,577
17,832,973 622,426 18,455,399 14,965,781 486,774 15,452,555 14,965,781 486,774 15,452,555

9.2 Particulars of / movement in provisions against non-performing loans and advances

Nine months period ended Year ended

30 September 2016 (Un-audited) 31 December 2015 (Audited)
Specific General Total Specific General Total
---------------------------------(Rupees in '000)--------------------------------

Opening balance 15,452,555 739,904 16,192,459 13,601,307 649,503 14,250,810

Exchange adjustment and other
movements during the period / year 883 (108) 775 31,406 3,300 34,706
Charge for the period / year 1,763,659 117,230 1,880,889 3,921,493 146,652 4,068,145
Reversals / recoveries during the
period / year (1,569,859) (43,922) (1,613,781) (1,858,385) (59,551) (1,917,936)
193,800 73,308 267,108 2,063,108 87,101 2,150,209
Amounts written off during the
period / year (72,192) - (72,192) (243,266) - (243,266)
Closing balance 15,575,046 813,104 16,388,150 15,452,555 739,904 16,192,459

9.2.1 The additional profit arising from availing the forced sales value (FSV) benefit - net of tax at 30 September
2016 which is not available for distribution as either cash or stock dividend to shareholders and bonus
to employees amounted to Rs. 110.729 million (December 2015: Rs. 110.774 million).
9.2.2 General provision against consumer loans represents provision maintained at an amount equal to 1.5%
of the fully secured performing portfolio and 5% of the unsecured performing portfolio as required by
the Prudential Regulations issued by the State Bank of Pakistan. General reserve of at least equivalent
to 1% of the secured and performing SE portfolio and 2% of the unsecured and performing SE portfolio
is also maintained as required under Prudential Regulations for Small and Medium Enterprise Financing.
20

Note 30 September 31 December

2016 2015
(Un-audited) (Audited)
(Rupees in '000)
10 OPERATING FIXED ASSETS

Capital work-in-progress 912,748 704,981

Property and equipment 15,801,980 15,497,616
Intangible assets 1,263,269 1,039,371
17,977,997 17,241,968

Nine months period ended

30 September 30 September
2016 2015
(Un-audited)
10.1 Additions to operating fixed assets (Rupees in '000)

Office premises 666,281 1,060

Leasehold improvements 90,143 479,280
Office equipment 574,014 747,125
Furniture and fixtures 44,010 58,701
Vehicles 36,337 15,236

10.2 Additions to Intangibles

Computer software 481,003 279,085

10.3 Disposals of operating fixed assets

Leasehold improvements 141 -

Office equipment 104,266 40,597
Furniture and fixtures 24,279 28,566
Vehicles 25,227 34,709

30 September 31 December
2016 2015
(Un-audited) (Audited)
11 BORROWINGS (Rupees in '000)

Secured
Borrowings from State Bank of Pakistan 16,077,487 17,430,111
Repurchase agreement borrowings 11.1 92,613,345 129,071,926
Borrowings of foreign operations 57,638 -
108,748,470 146,502,037
Unsecured
Call borrowings 11.2 19,283,041 17,901,900
Bai Muajjal - 7,935,453
Overdrawn nostro accounts - 53,808
19,283,041 25,891,161

128,031,511 172,393,198

11.1 This represents repurchase agreement borrowings from SBP and other banks at the rate of 0.90% and
5.88% per annum respectively (December 2015: 6.04% and 6.50% per annum) having maturities upto
October 2016 (December 2015: January 2016).
11.2 This represents borrowings from financial institutions at mark-up rates ranging from 0.55% to 5.79%
per annum (2015: 0.50% to 6.08% per annum) having maturities upto January 2017 (2015: March 2016).
Bank Alfalah 21
Quarter and Nine Months Report - 30 September 2016

30 September 31 December
2016 2015
(Un-audited) (Audited)
12 DEPOSITS AND OTHER ACCOUNTS (Rupees in '000)

Customers
Fixed deposits 121,637,376 137,604,333
Savings deposits 228,410,395 210,368,288
Current accounts - non-remunerative 254,608,254 234,795,160
Others 7,537,898 6,849,023
612,193,923 589,616,804
Financial institutions
Remunerative deposits 26,707,555 48,877,152
Non-remunerative deposits 2,539,761 1,694,779
29,247,316 50,571,931
641,441,239 640,188,735

13 CONTINGENCIES AND COMMITMENTS

13.1 Direct credit substitutes

i) Government 2,160,591 743,580

ii) Banking companies and other financial institutions - 311,835
iii) Others 118,986 2,094,645
2,279,577 3,150,060
13.2 Transaction - related contingent liabilities

i) Government 33,253,827 27,412,625

ii) Banking companies and other financial institutions 447,908 163,826
iii) Others 10,433,474 12,719,286
44,135,209 40,295,737
13.3 Trade - related contingent liabilities

Letters of credit 60,321,845 52,107,916

Acceptances 11,191,692 15,797,161

13.4 Other contingencies

Claims against the Bank not acknowledged as debts 13,777,344 14,861,738

13.4.1 These mainly represents counter claims filed by the borrowers for restricting the Bank from disposal of
assets (such as hypothecated / mortgaged / pledged assets kept as security), damage to reputation and
cases filed by Ex. employees of the Bank for damages sustained by them consequent to the termination
from the Bank's employment. Based on legal advice and / or internal assessment, management is
confident that the matters will be decided in Bank's favour and the possibility of any outcome against the
Bank is remote and accordingly no provision has been made in this unconsolidated condensed interim
financial information.
13.4.2 There is no change in the contingency relating to amount debited in Bank's nostro account in New York,
United States of America from that disclosed in unconsolidated annual audited financial statements for
the year ended 31 December 2015.
22

30 September 31 December
2016 2015
(Un-audited) (Audited)
(Rupees in ‘000)
13.5 Commitments in respect of forward lendings
Commitments to extend credit 22,482,052 5,222,555
13.6 Commitments in respect of forward exchange contracts
Purchase 60,831,941 98,261,212
Sale 61,024,376 106,520,120
13.7 Commitments for the acquisition of operating fixed assets 358,228 291,237
13.8 Commitments in respect of investments 4,824,644 -
13.9 Commitments in respect of repo transactions
Repurchase 92,714,550 129,226,010
Resale 8,222,328 -
13.10 Other commitments
Interest rate swaps 7,643,012 6,962,920
Donations 22,000 22,000
13.11 Contingencies for tax payable (note 16)
Nine months period ended
30 September 30 September
2016 2015
(Un-audited)
(Rupees in ‘000)
14 EARNINGS PER SHARE
14.1 BASIC EARNINGS PER SHARE
Profit after taxation for the period 6,266,249 6,044,503
(Number of shares in thousands)
Weighted average number of ordinary shares 1,593,457 1,589,536
(Rupees)
Basic earnings per share 3.93 3.80
14.2 DILUTED EARNINGS PER SHARE (Rupees in '000)
Profit after taxation for the period 6,266,249 6,044,503
(Number of shares in thousands)
Weighted average number of ordinary shares 1,601,098 1,589,536
(Rupees)
Diluted earnings per share 3.91 3.80

30 September 31 December
2016 2015
15 CASH AND CASH EQUIVALENTS (Un-audited) (Audited)

Cash and balances with treasury banks 63,640,399 62,368,790

Balances with other banks 8,785,347 16,552,207
Call money lendings 8,014,512 14,728,532
Overdrawn nostro accounts - (53,808)
80,440,258 93,595,721
Bank Alfalah 23
Quarter and Nine Months Report - 30 September 2016

16 TAXATION

The income tax assessments of the Bank have been finalized upto and including tax year 2015. Matters of
disagreement exist between the Bank and tax authorities for various assessment years and are pending
with the Commissioner of Inland Revenue (Appeals), Appellate Tribunal Inland Revenue (ATIR), High Court
of Sindh and Supreme Court of Pakistan. These issues mainly relate to addition of mark up in suspense
to income, taxability of profit on government securities, bad debts written off and disallowances relating
to profit and loss expenses.
In respect of tax years 2008, 2011, 2012, 2013 and 2015, the tax authorities have raised certain issues
including disallowance of expenditure on account of non-deduction of withholding tax, default in
payment of WWF, allocation of expenses to dividend and capital gains and dividend income from mutual
funds not being taken under income from business, resulting in additional demand of Rs.1,452.536 million.
As a result of appeal filed before Commissioner Appeals against these issues, relief has been provided
for tax amount of Rs.1,023.719 million whereas appeal effect orders are pending. The management's
appeals on certain issues are pending before Commissioner Appeals. The management is confident that
this matter will be decided in favour of the Bank and consequently has not made any provision in respect
of these amounts.
The Bank has received amended assessment orders for Tax Years from 2010 to 2013 wherein Tax
Authorities have disallowed depreciation on Ijara Assets considering it Finance Lease and raised a tax
demand of Rs.990.423 million. As a result of appeal filed before Commissioner Appeal, relief is provided
to the Bank to the extent of principal amount which is part of Ijarah rentals and should not be taxed.
Accordingly tax amount is reduced to Rs.96.160 million. The Bank has filed appeal before Appellate
Tribunal. The Bank has not made any provision against these orders and the management is of the view
that the matter will be settled in Bank's favour through appellate process.
In respect of monitoring of withholding taxes, the Bank has received various orders from tax authorities.
The Bank has not made provision amounting to Rs.510.380 million against tax demand (after reduction on
rectifications) for tax years 2009 to 2015. The Bank intends to obtain relief through rectification orders.
The management is of the view that the matter will be settled in Bank's favour.
The Bank has received an order from a provincial tax authority wherein tax authority has disallowed
certain exemptions of sales tax on banking services and demanded sales tax and penalty amounting
to Rs.97.560 million (excluding default surcharge) for the period from July 2011 to June 2014. Bank's
appeal against this order is currently pending before Commissioner Appeals. The Bank has not made any
provision against this order and the management is of the view that the matter will be settled in Bank's
favour through appellate process.

17 RELATED PARTY TRANSACTIONS

Parties are considered to be related if one party has the ability to control the other party or exercise
significant influence over the other party in making financial or operational decisions and include major
shareholders, subsidiary company, associated companies with or without common directors, retirement
benefit funds and directors and key management personnel and their close family members.
Banking transactions with the related parties are executed substantially on the same terms, including
mark-up rates and collateral, as those prevailing at the time for comparable transactions with unrelated
parties and do not involve more than a normal risk.
Contributions to and accruals in respect of staff retirements and other benefit plans are made in
accordance with the actuarial valuations / terms of the contribution plan. Remuneration to executives is
determined in accordance with the terms of their appointment.
24

17.1 Details of transactions with the related parties and balances with them as at period end / year end are as follows:

30 September 2016 (Un-audited)

Group /
Key
Associated Subsidiaries /
Directors Management Total
Companies / Associates
Personnel
Others
-------------------------------(Rupees in '000)---------------------------
Deposits

Balance at beginning of the period 14,825 120,281 6,095,049 402,093 6,632,248

Placements during the period 95,919 872,356 72,521,077 34,531,519 108,020,871
Withdrawals / adjustments during the period (89,732) (845,719) (72,337,931) (33,828,489) (107,101,871)
Balance at end of the period 21,012 146,918 6,278,195 1,105,123 7,551,248

Advances

Balance at beginning of the period - 328,280 6,339,450 - 6,667,730

Disbursements / adjustments during the period - 179,896 14,994,709 - 15,174,605
Repayments / adjustments during the period - (212,092) (13,757,691) - (13,969,783)
Balance at end of the period - 296,084 7,576,468 - 7,872,552

Provision held against advances - - 864,845 - 864,845

Investments

Balance at beginning of the period - - 4,716,796 4,466,152 9,182,948

Investments during the period - - - 1,976,445 1,976,445
Redemption / adjustments during the period - - (4,666,796) (350,000) (5,016,796)
Balance at end of the period - - 50,000 6,092,597 6,142,597

Provision held against investments - - 50,000 826,000 876,000

Call borrowings / Repo

Balance at beginning of the period - - - - -

Borrowings during the period - - 1,200,000 - 1,200,000
Repayments during the period - - (1,200,000) - (1,200,000)
Balance at end of the period - - - - -

Call lendings / Reverse repo

Balance at beginning of the period - - - - -

Placements during the period - - 5,000,000 - 5,000,000
Withdrawals during the period - - (5,000,000) - (5,000,000)
Balance at end of the period - - - - -
Bank Alfalah 25
Quarter and Nine Months Report - 30 September 2016

31 December 2015 (Audited)

Group /
Key
Associated Subsidiaries /
Directors Management Total
Companies / Associates
Personnel
Others
-------------------------- (Rupees in '000) ------------------------------
Deposits

Balance at beginning of the year 38,398 71,170 5,054,223 486,239 5,650,030

Placements during the year 168,409 1,271,256 81,788,021 31,744,672 114,972,358
Withdrawals / adjustments during the year (191,982) (1,222,145) (80,747,195) (31,828,818) (113,990,140)
Balance at end of the year 14,825 120,281 6,095,049 402,093 6,632,248

Advances
Balance at beginning of the year - 280,630 3,828,522 30,000 4,139,152
Disbursements during the year - 324,922 22,147,792 22,000 22,494,714
Repayments / adjustments during the year - (277,272) (19,636,864) (52,000) (19,966,136)
Balance at end of the year - 328,280 6,339,450 - 6,667,730

Provision held against advances - - 185,627 - 185,627

Investments
Balance at beginning of the year - - 4,416,796 3,670,925 8,087,721
Investments during the year - - - 1,723,471 1,723,471
Redemptions / adjustments during the year - - 300,000 (928,244) (628,244)
Balance at end of the year - - 4,716,796 4,466,152 9,182,948

Provision held against investments - - 4,416,796 826,000 5,242,796

Call borrowings / Repo

Balance at beginning of the year - - - - -
Borrowings during the year - - 1,300,000 - 1,300,000
Repayments during the year - - (1,300,000) - (1,300,000)
Balance at end of the year - - - - -

Call lendings / Reverse Repo

Balance at beginning of the year - - - - -
Placements during the year - - 17,825,000 - 17,825,000
Withdrawals during the year - - (17,825,000) - (17,825,000)
Balance at end of the year - - - - -

30 September 31 December
2016 2015
(Un-audited) (Audited)
(Rupees in '000)
17.2 Advances
Running finance 1,047,288 760,958
Long term loans 6,825,264 5,906,772

17.3 Contingencies and commitments

Letter of credit, acceptance &
Guarantees outstanding 1,722,845 3,134,931

17.4 Customer Accounts

PLS accounts 2,991,948 3,304,579
Current accounts 1,048,407 1,059,518
Fixed deposit accounts 3,510,893 2,268,151
26

Nine months period ended

30 September 30 September
2016 2015
(Un-audited)
(Rupees in '000)
17.5 Transactions with Subsidiaries / Associates and Others

Subsidiaries / Associates
Mark-up expense on deposits 29,913 45,537
Mark-up income on advances - 35,353
Mark-up paid to Alfalah GHP Income Multiplier Fund on TFCs Issued 488 648
Mark-up paid to Alfalah GHP Income fund on TFCs issued 5,509 8,900
Brokerage Expense pertaining to Alfalah Securities (Private) Limited 644 575
Rent Income from Alfalah Insurance Limited 1,747 1,497
Rent Income from Alfalah Securities (Private) Limited 115 1,022
Insurance premium paid to Alfalah Insurance Limited 537,588 529,001
Dividend paid to Alfalah Insurance Limited 500 1,000
Dividend income from Alfalah GHP Money Market Fund   4,210 -
Dividend income from Alfalah GHP Sovereign Fund 9,253 26,944
Dividend income from Alfalah GHP Islamic Stock Fund 45,320 40,867
Dividend income from Alfalah GHP Cash Fund 32,926 47,082
Dividend income from Alfalah GHP Income Multiplier Fund 10,270 23,284
Dividend income from Alfalah GHP Income Value Fund - 22,434
Revenue from Alfalah GHP Investment Management Limited against sale of units 47,962 21,119
Capital Gain on sale of units of Alfalah GHP Money Market Fund - 46,672
Capital Gain on sale of units of Alfalah GHP Value Fund 104,800 -
Capital Gain on sale of units of Alfalah GHP Cash Fund - 25,085
Reversal of provision against rent receivable from Alfalah Securities (Private) Limited - 9,147

Others
Mark-up income 253,309 293,979
Mark-up expense on deposits 110,478 217,692
Rent income from Wateen Telecom (Private) Limited - 1,766
Rent income from Warid Telecom (Private) Limited 12,339 12,915
Rent expense paid pertaining to Wateen Telecom (Private) Limited 4,264 8,550
Interest received on placements with Silk Bank 856 4,307
Mark-up paid to Taavun (Private) Limited on TFCs Issued 37,410 37,425
Mark-up paid to Key Management Personnel on TFCs Issued 14,518 12,110
Amount received on Redemtption of Silk Bank Preference Shares 439,200 -
Interest paid on Borrowings from Silk Bank 195 128
Payment to Institute of Bankers of Pakistan for calendars and diaries etc. 2,512 303
Payment to Wateen Telecom (Private) Limited and Wateen Solutions (Private)
Limited for purchase of equipment and maintenance charges 100,555 100,611
Payment to Monet (Private) Limited for Branchless banking services 144,821 142,309
Payment to Al-Qudees & Co 10,263 25,006
Payment to Locker Smiths (Private) Limited 10,675 -
Payment to Sundar Interiors & Architects 4,525 49,884
Payment to Timber Links 2,484 8,768
Payment to Expressive Safety & Security Solutions 8,971 4,293
Payment to Olive International (Private) Limited 1,525 5,571
Payment to Computer Marketing Co. (Private) Limited. 15,258 6,922
Payment to K-Tabs 16,112 16,205
Payment to MEC Engineer 9,324 2,661
Payment to Tahiri Printers 5,946 -
Payment to Bawany Traders 4,102 -
Contribution to employees provident fund 244,490 223,749
Charge in respect of gratuity 211,678 223,326
Provision against advances on Wateen Telecom (Private) Limited 679,385 -
Provision against advances on Wateen Wimax (Private) Limited 185,460 -
Commission received from Warid Telecom (Private) Limited 1,828 6,643
Bank Alfalah 27
Quarter and Nine Months Report - 30 September 2016

30 September 31 December
2016 2015
(Un-audited) (Audited)
(Rupees in '000)
17.6 Balances with Subsidiaries / Associates and Others

Subsidiaries / Associates
Advance Rent from Alfalah Insurance Limited 208 1,955
Advance against issuance of Shares - Sapphire Wind Power Limited 112,350 112,350
Rent receivable from Alfalah Securities (Private) Limited - 577
Brokerage payable to Alfalah Securities (Private) Limited 96 46
TFCs held by Alfalah GHP Income Multiplier Fund 6,116 6,119
TFCs held by Alfalah GHP Income Fund 72,887 87,899

Others
Mark-up suspended on advances to Warid Telecom (Private) Limited 61,270 42,582
Mark-up suspended on advances to Wateen Telecom (Private) Limited 766,553 644,122
Mark-up suspended on advances to Wateen Wimax (Private) Limited 13,943 5,587
Advance Rent from Warid Telecom (Private) Limited 12,632 8,206
Rent receivable from Warid Telecom (Private) Limited 195 -
Rent payable to Wateen Telecom (Private) Limited - 750
Commission receivable from Warid Telecom (Private) Limited 7,949 -
TFCs held by Taavun (Private) Limited 498,700 498,800
TFCs held by Key Management Personnel 193,535 186,591

Nine months period ended

30 September 30 September
2016 2015
(Un-audited)
(Rupees in '000)
17.7 Key management personnel

Salaries and Allowances 1,060,289 932,711

Fair value charge against employee stock option scheme 87,348 37,075

In addition the Chief Executive Officer and other executive officers are provided with the Bank maintained
car as per Bank's policy.

18 GENERAL

Comparative information has been re-classified, re-arranged or additionally incorporated in this

unconsolidated condensed interim financial information, to facilitate comparison and to conform with
changes in presentation in the current period.
18.1 During the current period, the State Bank of Pakistan (SBP), vide BPRD Circular Letter No. 05 of 2016
dated February 29, 2016 has issued instructions on revised forms of annual financial statements, which
further supplements the requirements laid down earlier, vide SBP's BSD Circular No. 4 of 2006 and BSD
Circular Letter No. 03 of 2013 on the matter.
In order to standardize the financial statements and to bring comparability, banks having IBBs have been
advised to show Islamic Financing and Related Assets under the head of “Advances” in their financial
statements. In addition, banks have also been advised to show Bai Muajjal of Government of Pakistan
Ijara Sukuk with State Bank of Pakistan and other Financial Institutions under the head “Lendings to
Financial Institutions" , whereas Bai Muajjal transactions with Government of Pakistan are required to be
reported under investment category as other Federal Government securities.
The effect of re-classification on comparative information presented for the year ended December 31,
2015 as part of the Statement of Financial Position is as follows:
28

As at 31 December 2015
(Rupees in '000)
As previously Effect of Re-
As restated
reported classification

Lending to Financial Institutions 53,628,870 (26,002,520) 27,626,350

Investments - net 397,097,214 26,002,520 423,099,734
Advances - net 327,297,821 6,860,918 334,158,739
Other assets 28,420,651 (6,860,918) 21,559,733

18.2 In addition to the aforementioned, no significant reclassification has been made except as follows:

Reclassified

Description Rupees in '000 From To

Mark-up / return /
Insurance expenses on Ijarah assets (216,423) Other Income
interest earned

Mark-up / return /
Registration expenses on Ijarah assets (49,699) Other Income
interest earned

Mark-up / return /
Rental income on Ijarah assets 250,917 Other Income
interest earned

19 DATE OF AUTHORISATION

The unconsolidated condensed interim financial information was authorised for issue on 26 October
2016 by the Board of Directors of the Bank.

Chief Executive Officer

Bank Alfalah 29
Quarter and Nine Months Report - 30 September 2016

Annexure-I
Islamic Banking Business
The bank is operating through 158 Islamic banking branches as at 30 September 2016 (31 December 2015: 158
branches).

Note 30 September 31 December

2016 2015
(Rupees in '000)
ASSETS
Cash and balances with treasury banks 10,290,384 9,516,305
Balances with and due from financial institutions 2,311,864 2,938,812
Lendings to financial institutions 18,620,630 12,610,451
Investments - net 63,078,273 59,424,549
Islamic financing and related assets A-I.1 42,319,339 42,056,149
Operating fixed assets 2,180,040 2,285,906
Other assets 3,818,654 2,664,563
142,619,184 131,496,735
LIABILITIES
Bills payable 1,995,695 1,428,720
Due to financial institutions 12,236,595 9,984,637
Deposits and other accounts
- Current accounts 38,676,447 37,357,094
- Saving accounts 52,594,439 51,824,143
- Term deposits 18,285,886 14,714,498
- Others 1,748,764 1,269,209
Deposits from financial institutions - remunerative deposits 915,393 240,392
Deposits from financial institutions - non-remunerative deposits 4,633 1,946
Other liabilities 5,493,491 5,303,877
131,951,343 122,124,516
NET ASSETS 10,667,841 9,372,219

REPRESENTED BY
Islamic banking fund 1,800,000 1,800,000
Exchange translation reserve 1,582 (56)
Unappropriated / unremitted profit 7,523,814 6,463,950
9,325,396 8,263,894
Surplus on revaluation of assets - net of tax 1,342,445 1,108,325
10,667,841 9,372,219

Remuneration to Shariah Advisor / Board 5,040 4,605

CHARITY FUND
Opening Balance 176,557 131,543
Additions during the period
Received from customers on delayed payments & Others 44,240 80,933
Non-shariah compliant income - 1,295
Profit on charity saving account 5,428 8,527
49,668 90,755
Distribution of Charity
Welfare Works - (16,397)
Health (32,902) (24,163)
Education (20,882) (5,181)
(53,784) (45,741)

Closing Balance 172,441 176,557

30

Annexure-I
Islamic Banking Business
Quarter Nine months Quarter Nine months
ended period ended ended period ended
30 September 30 September 30 September 30 September
2016 2016 2015 2015
-----------------------------(Rupees in '000)--------------------------

Income / return earned 1,814,323 5,464,248 1,925,683 6,193,233

Income / return expensed 915,666 2,576,834 854,121 2,833,200
Net income / return earned 898,657 2,887,414 1,071,562 3,360,033

Provisions against loans and advances - net (1,905) 45,113 59,505 168,996
Provision for diminution in value of investments - net (975) 3,088 - 13,828
Bad debts written off directly - - 14 14
(2,880) 48,201 59,519 182,838
Net income / return earned after provisions 901,537 2,839,213 1,012,043 3,177,195

Other income
Fee, commission and brokerage income 76,706 224,567 68,680 216,802
Dividend income - 45,320 - 40,867
Income from dealing in foreign currencies 38,377 123,487 38,238 93,918
Gain on sale of securities - net 1,966 2,991 - 84,386
Unrealised loss on revaluation of investment
classified as held for trading - - 269 (364)
Other income 27,679 70,073 20,050 66,471
Total other income 144,728 466,438 127,237 502,080
1,046,265 3,305,651 1,139,280 3,679,275
Other expenses
Administrative expenses 738,177 2,245,112 706,209 2,095,843
Provision against off-balance sheet obligations - - - -
Other charges 331 675 402 778
Total other expenses 738,508 2,245,787 706,611 2,096,621

Profit before taxation 307,757 1,059,864 432,669 1,582,654

Bank Alfalah 31
Quarter and Nine Months Report - 30 September 2016

Annexure-I
Islamic Banking Business
Note 30 September 31 December
2016 2015
(Rupees in '000)
A-I.1 Islamic Financing and Related Assets
Murabaha A-I.1.1 6,076,991 10,173,925
Ijarah A-I.1.2 7,694,375 7,220,136
Diminishing Musharakah A-I.1.3 614,557 506,584
Musharakah A-I.1.4 10,329,407 9,902,071
Running Musharakah A-I.1.5 6,761,336 3,153,938
Salam A-I.1.6 5,833,730 5,016,961
Istisna A-I.1.7 1,281,216 1,833,420
SBP Islamic Export Refinance Scheme A-I.1.8 2,680,720 3,410,839
Others A-I.1.9 1,047,007 838,275
42,319,339 42,056,149
A-I.1.1 Murabaha
Financing / Investments / Receivables 6,159,714 7,091,427
Advances 457,729 3,652,705
Others (Provisions) (540,452) (570,207)
6,076,991 10,173,925
A-I.1.2 Ijarah
Financing / Investments / Receivables 145,615 176,280
Advances 689,492 408,452
Assets / Inventories 7,097,754 6,875,617
Others (Provisions) (238,486) (240,213)
7,694,375 7,220,136
A-I.1.3 Diminishing Musharakah
Financing / Investments / Receivables 700,907 614,441
Advances 101,417 45,053
Others (Provisions) (187,767) (152,910)
614,557 506,584
A-I.1.4 Musharakah
Financing / Investments / Receivables 9,130,229 8,258,035
Advances 1,208,231 1,653,089
Others (Provisions) (9,053) (9,053)
10,329,407 9,902,071
A-I.1.5 Running Musharakah
Financing / Investments / Receivables 6,761,336 3,153,938
Advances - -
Others (Provisions) - -
6,761,336 3,153,938
A-I.1.6 Salam
Financing / Investments / Receivables 5,835,830 4,989,061
Advances - 30,000
Others (Provisions) (2,100) (2,100)
5,833,730 5,016,961
A-I.1.7 Istisna
Financing / Investments / Receivables 573,775 810,830
Advances 752,441 1,022,590
Others (Provisions) (45,000) -
1,281,216 1,833,420
A-I.1.8 SBP Islamic Export Refinance Scheme
Financing / Investments / Receivables 2,680,720 3,410,839
Advances - -
Others (Provisions) - -
2,680,720 3,410,839
A-I.1.9 Others
Staff Loans 923,670 808,402
Advance Against Musharakah Staff 47,797 46,320
Advance Against Ijarah Staff 1,467 2,709
Advance Against Murabaha Staff 617 -
Falah Tijarah Inventory 100,000 -
Overdue Acceptances and FBP 1,802 12,452
Others (Provisions) (28,346) (31,608)
1,047,007 838,275
32

Consolidated Condensed Interim

Statement of Financial Position
As at 30 September 2016
Note 30 September 31 December
2016 2015
(Un-audited) (Audited)
(Restated)
(Rupees in '000)
ASSETS
Cash and balances with treasury banks 63,640,414 62,368,827
Balances with other banks 8,871,217 16,583,138
Lendings to financial institutions 7 26,331,504 27,626,350
Investments - net 8 410,127,543 423,518,968
Advances - net 9 327,721,537 334,160,478
Operating fixed assets 10 18,057,008 17,317,691
Deferred tax assets - -
Other assets 16,816,387 21,840,305
871,565,610 903,415,757
LIABILITIES
Bills payable 11,419,727 9,733,929
Borrowings 11 128,031,511 172,393,198
Deposits and other accounts 12 641,345,402 640,137,161
Sub-ordinated loans 9,980,000 9,983,000
Liabilities against assets subject to finance lease - -
Deferred tax liabilities 2,649,614 1,826,270
Other liabilities 18,247,897 15,249,463
811,674,151 849,323,021
NET ASSETS 59,891,459 54,092,736

REPRESENTED BY
Share capital 15,952,076 15,898,062
Reserves 15,549,382 14,164,120
Unappropriated profit 16,393,355 12,813,488
Total equity attributable to the equity holders of the Bank 47,894,813 42,875,670
Non-controlling interest 308,132 274,134
Surplus on revaluation of assets - net of tax 11,688,514 10,942,932
59,891,459 54,092,736

CONTINGENCIES AND COMMITMENTS 13

The annexed notes 1 to 19 form an integral part of the consolidated condensed interim financial information.

Chief Executive Officer

Bank Alfalah 33
Quarter and Nine Months Report - 30 September 2016

Consolidated Condensed Interim

Profit and Loss Account (Un-Audited)
for the Quarter and Nine Months Period Ended 30 September 2016

Note Quarter Nine months Quarter Nine months

ended period ended ended period ended
30 September 30 September 30 September 30 September
2016 2016 2015 2015
---------------------------(Rupees in ‘000)--------------------------
Mark-up / return / interest earned 13,736,027 43,451,065 14,902,524 46,146,435
Mark-up / return / interest expensed 6,701,947 21,760,539 7,605,611 24,940,801
Net mark-up / interest income 7,034,080 21,690,526 7,296,913 21,205,634

(Reversal) / provision against non-performing

loans and advances - net (76,467) 267,108 124,356 1,260,745
Provision for diminution in value of investments - net 2,962 67,849 18,620 92,342
Bad debts written-off directly - - 14 14
(73,505) 334,957 142,990 1,353,101
Net mark-up / interest income after provisions 7,107,585 21,355,569 7,153,923 19,852,533

Non mark-up / interest income

Fee, commission and brokerage income 921,633 3,460,662 1,092,004 3,320,648
Dividend income 148,120 349,626 68,900 248,691
Income from dealing in foreign currencies 274,856 888,133 436,704 1,165,061
Gain on sale of securities - net 369,360 1,594,408 135,539 1,222,423
Unrealised (loss) / gain on revaluation of investments
classified as held for trading - net (40,643) (16,632) 134,503 231,651
Share of profit from associates 166,556 371,566 51,996 206,486
Other income 358,668 696,400 181,604 643,403
Total non mark-up / interest income 2,198,550 7,344,163 2,101,250 7,038,363
9,306,135 28,699,732 9,255,173 26,890,896
Non mark-up / interest expenses -
Administrative expenses 6,013,037 17,686,842 5,534,385 16,079,311
(Reversal) / provision against off-balance sheet obligations (5,446) 9,643 (3,689) (5,629)
Provision / (reversal) against other assets 3,599 (41,143) 48,102 319,400
Other charges 75,809 231,785 63,111 277,231
Total non mark-up / interest expenses 6,086,999 17,887,127 5,641,909 16,670,313
3,219,136 10,812,605 3,613,264 10,220,583
Extra ordinary / unusual items - - - -
Profit before taxation 3,219,136 10,812,605 3,613,264 10,220,583

Taxation 16
- Current 1,306,686 4,045,332 1,323,176 4,042,922
- Deferred (194,667) (228,320) 36,222 (359,490)
- Prior years - 563,000 - 567,813
1,112,019 4,380,012 1,359,398 4,251,245
Profit after taxation 2,107,117 6,432,593 2,253,866 5,969,338

Profit attributable to:

Equity holders of the Bank 2,093,296 6,398,595 2,242,750 5,944,918
Non-controlling interest 13,821 33,998 11,116 24,420
2,107,117 6,432,593 2,253,866 5,969,338

(Rupees)
Basic earnings per share 14 1.31 4.02 1.41 3.74
Diluted earnings per share 14 1.31 4.00 1.41 3.74

The annexed notes 1 to 19 form an integral part of the consolidated condensed interim financial information.

Chief Executive Officer

34

Consolidated Condensed Interim

Statement of Comprehensive Income (Un-Audited)
for the Quarter and Nine Months Period Ended 30 September 2016

Quarter Nine months Quarter Nine months

ended period ended ended period ended
30 September 30 September 30 September 30 September
2016 2016 2015 2015
-----------------------(Rupees in ‘000)-----------------------
Profit after taxation 2,107,117 6,432,593 2,253,866 5,969,338

Other comprehensive income

Items that are or may be reclassified subsequently

to profit and loss account

Exchange differences on translation of net

investment in foreign branches 6,486 13,783 8,774 48,869

Comprehensive income - transferred to

consolidated condensed interim statement
of changes in equity 2,113,603 6,446,376 2,262,640 6,018,207

Attributable to:
Equity holders of the Bank 2,099,782 6,412,378 2,251,524 5,993,787
Non-controlling interest 13,821 33,998 11,116 24,420
Comprehensive income - transferred to consolidated
condensed interim statement of changes in equity 2,113,603 6,446,376 2,262,640 6,018,207

Components of comprehensive income

not reflected in equity

(Deficit) / surplus on revaluation of available-for-sale

securities - net of tax (611,353) 808,471 483,502 2,970,397

Share of (deficit) / surplus on revaluation of associates'

available for sale securities - (536) (836) (836)

The annexed notes 1 to 19 form an integral part of the consolidated condensed interim financial information.

Chief Executive Officer

Bank Alfalah 35
Quarter and Nine Months Report - 30 September 2016

Consolidated Condensed Interim

Cash Flow Statement (Un-Audited)
for the Nine Months Period Ended 30 September 2016
Nine months period ended
30 September 30 September
Note
2016 2015
CASH FLOW FROM OPERATING ACTIVITIES (Rupees in '000)
Profit before taxation 10,812,605 10,220,583
Dividend income (349,626) (248,691)
Share of profit from associates (371,566) (206,486)
10,091,413 9,765,406
Adjustments for:
Depreciation 1,265,919 1,342,722
Amortisation 258,701 199,920
Provision against non-performing loans and advances - net 267,108 1,260,745
Provision for diminution in the value of investments - net 67,849 92,342
(Reversal) / provision against off-balance sheet obligations 9,643 (5,629)
(Reversal) / provision against other assets (41,143) 319,400
Unrealised loss / (gain) on revaluation of investments classified as held for trading - net 16,632 (231,651)
Bad debts written-off directly - 14
Gain on sale of operating fixed assets - net (23,786) (1,395)
Charge for defined benefit plan 211,678 223,326
2,032,601 3,199,794
12,124,014 12,965,200
(Increase) / decrease in operating assets
Lendings to financial institutions (5,419,174) (11,714,876)
Held-for-trading securities (2,471,794) (383,927)
Advances 6,171,833 (12,807,119)
Other assets (excluding tax recoverable and dividend receivable) 5,151,236 8,158,367
3,432,101 (16,747,555)
Increase / (decrease) in operating liabilities
Bills payable 1,685,798 613,335
Borrowings (44,307,879) 57,789,426
Deposits and other accounts 1,208,241 (20,191,704)
Other liabilities (excluding current taxation) 1,571,947 (730,929)
(39,841,893) 37,480,128
(24,285,778) 33,697,773
Income tax paid (2,840,769) (1,050,635)
Net cash (used in) / generated from operating activities (27,126,547) 32,647,138

CASH FLOW FROM INVESTING ACTIVITIES

Net investments in available-for-sale securities (15,404,241) (35,847,964)
Net investments in held-to-maturity securities 32,484,527 (186,224)
Net investment in associated companies 95,790 295,173
Dividend income received 300,697 190,888
Dividend income received from associates 114,324 169,592
Investments in operating fixed assets (2,108,076) (1,501,679)
Proceeds from sale of operating fixed assets 32,587 17,078
Net cash generated / (used in) investing activities 15,515,608 (36,863,136)

CASH FLOW FROM FINANCING ACTIVITIES

Redemption of sub-ordinated loans (3,000) (3,000)
Issuance of shares capital 84,895 41,836
Dividend paid (1,585,285) (3,176,177)
Net cash used in from financing activities (1,503,390) (3,137,341)
Exchange difference on translation of the net investments in foreign branches 13,783 48,869
Decrease in cash and cash equivalents (13,100,546) (7,304,470)
Cash and cash equivalents at the beginning of the period 93,490,515 65,539,265
Effect of exchange rate changes on cash and cash equivalents 136,174 343,958
93,626,689 65,883,223

Cash and cash equivalents at the end of the period 15 80,526,143 58,578,753

The annexed notes 1 to 19 form an integral part of the consolidated condensed interim financial information.

Chief Executive Officer

 36

Consolidated Condensed Interim

Statement of Changes in Equity (Un-Audited)
for the Nine Months Period Ended 30 September 2016
Capital Reserve Revenue Reserve
Employee
Exchange Non
Share Share Statutory Share Option Unappropriated
Translation Sub-total Controlling Total
Capital Premium Reserve* Compensation profit
Reserve Interest
Reserve
--------------------------------------------------------------(Rupees in '000)--------------------------------------------------------------
Balance as at 1 January 2015 15,872,427 4,285,556 6,636,342 1,362,465 53,663 10,091,872 38,302,325 255,999 38,558,324
Changes in equity for the nine months period ended 30 September 2015
Total comprehensive income for the period
Profit after taxation for the nine months period ended 30 September 2015 - - - - - 5,944,918 5,944,918 24,420 5,969,338
Effect of change in minority interest - - - - - (6,466) (6,466) 6,466 -
Other comprehensive income for the nine months period
ended 30 September 2015
Exchange differences on translation of net investment in foreign branches - - - 48,869 - - 48,869 - 48,869
- - - 48,869 - 5,938,452 5,987,321 30,886 6,018,207
Transfer to statutory reserve - - 1,208,901 - - (1,208,901) - - -
Transfer from surplus on revaluation of fixed assets - net of tax - - - - - 26,088 26,088 - 26,088
Transactions with owners, recorded directly in equity
Cash dividend for the year ended 31 December 2014 @ 20% - - - - - (3,174,485) (3,174,485) - (3,174,485)
Share capital issued during the period 25,635 16,201 - - - - 41,836 - 41,836
Recognition of fair value of share based payments on grant - - - - 125,625 - 125,625 - 125,625
date during the period
Unamortised portion of deferred employee compensation expense - - - - (53,249) - (53,249) - (53,249)
Balance as at 30 September 2015 15,898,062 4,301,757 7,845,243 1,411,334 126,039 11,673,026 41,255,461 286,885 41,542,346
Changes in equity for the quarter ended 31 December 2015
Total comprehensive income for the period
Profit after taxation for the quarter ended 31 December 2015 - - - - - 1,557,742 1,557,742 (12,751) 1,544,991
Other comprehensive income for the quarter ended 31 December 2015
Exchange differences on translation of net investment in foreign branches - - - 161,632 - - 161,632 - 161,632
Remeasurement of defined benefit plans - - - - - (199,200) (199,200) - (199,200)
Related tax charge - - - - - 69,637 69,637 - 69,637
Share of remeasurement of defined benefit plans of associates - - - - - (752) (752) - (752)
- - - 161,632 - 1,427,427 1,589,059 (12,751) 1,576,308
Transfer to statutory reserve - - 295,661 - - (295,661) - - -
Transfer from surplus on revaluation of fixed assets - net of tax - - - - - 8,696 8,696 - 8,696
Transactions with owners, recorded directly in equity
Recognition of fair value of share based payments on - - - - (6,375) - (6,375) - (6,375)
grant date during the period
Adjustment to unamortised portion of deferred employee - - - - 28,829 - 28,829 - 28,829
compensation expense
Transfer to Share Premium on issuance of shares under - 27,891 - - (27,891) - - - -
Stock Option Scheme
Balance as at 31 December 2015 15,898,062 4,329,648 8,140,904 1,572,966 120,602 12,813,488 42,875,670 274,134 43,149,804
Changes in equity for the nine months period ended 30 September 2016
Total comprehensive income for the period
Profit after taxation for the nine months period ended 30 September 2016 - - - - - 6,398,595 6,398,595 33,998 6,432,593
Other comprehensive income for the nine months period
ended 30 September 2016
Exchange differences on translation of net investment in foreign branches - - - 13,783 - - 13,783 - 13,783
- - - 13,783 - 6,398,595 6,412,378 33,998 6,446,376
Transfer to statutory reserve - - 1 ,253,250 - - (1 ,253,250) - - -
Transfer from surplus on revaluation of fixed assets - net of tax - - - - - 24,328 24,328 - 24,328
Transactions with owners, recorded directly in equity
Cash dividend for the year ended 31 December 2015 @ 10% - - - - - (1,589,806) (1,589,806) - (1,589,806)
Shares issued during the period 54,014 30,881 - - - - 84,895 - 84,895
Recognition of fair value of share based payments on grant date during the period - - - - 126,102 - 126,102 - 126,102
Adjustment to unamortised portion of deferred employee compensation expense - - - - (38,754) - (38,754) - (38,754)
Transfer to Share Premium on issuance of shares under Stock Option Scheme - 56,597 - - (56,597) - - - -
Balance as at 30 September 2016 15,952,076 4,417,126 9,394,154 1,586,749 151,353 16,393,355 47,894,813 308,132 48,202,945

* This represents reserve created under section 21(i) (a) of the Banking Companies Ordinance, 1962.

The annexed notes 1 to 19 form an integral part of the consolidated condensed interim financial information.

Chief Executive Officer

Bank Alfalah 37
Quarter and Nine Months Report - 30 September 2016

Notes to and Forming Part of the Consolidated

Condensed Interim Financial Information (Un-Audited)
for the Nine Months Period Ended 30 September 2016
1 STATUS AND NATURE OF BUSINESS

1.1 The "Group" consists of:

Holding Company
Bank Alfalah Limited, Pakistan

Bank Alfalah Limited (the Bank) is a banking company incorporated in Pakistan on June 21, 1992 as a
public limited company under the Companies Ordinance, 1984. It commenced its banking operations on
November 1, 1992. The Bank's registered office is located at B. A. Building, I. I. Chundrigar Road, Karachi
and is listed on the Pakistan Stock Exchange (formerly Karachi, Lahore and Islamabad Stock Exchanges).
The Bank is engaged in banking services as described in the Banking Companies Ordinance, 1962 and is
operating through 486 conventional banking branches including 13 sub branches (2015: 484 branches
including 12 sub branches), 10 overseas branches (2015: 10 branches), 158 Islamic banking branches (2015:
158 branches) and 1 offshore banking unit (2015: 1 unit).
PACRA has assigned a long term credit rating of AA [Double A] and a short term credit rating of A1+ (A
one plus) to the Bank as at June 2016.

Percentage of Holding
30 September 31 December
2016 2015
Subsidiaries
Alfalah Securities (Private) Limited, Pakistan 97.91 percent 97.91 percent
Alfalah GHP Investment Management Limited, Pakistan 40.22 percent 40.22 percent

1.2 In addition, the Group maintains investments in associates, as well as in certain mutual funds established
under trust structure not consolidated as subsidiaries, based on directives issued by the Securities and
Exchange Commission of Pakistan (SECP) through S.R.O. 56(I)/2016, dated January 28, 2016 (refer note
8.1), as detailed in note 1.2 and note 2.5 to the annual consolidated financial statements for the year
ended 31 December 2015.

2 BASIS OF PRESENTATION

2.1 This consolidated condensed interim financial information represents financial information of the
holding company - Bank Alfalah Limited and its subsidiaries. The assets and liabilities of subsidiaries
have been consolidated on a line-by-line basis and the investment held by the Bank is eliminated against
the corresponding share capital of subsidiaries in these consolidated financial statements.
2.2 In accordance with the directives of the Federal Government regarding the shifting of the banking
system to Islamic modes, the State Bank of Pakistan has issued various circulars from time to time.
Permissible form of trade-related modes of financing includes purchase of goods by banks from their
customers and immediate resale to them at appropriate mark-up in price on deferred payment basis. The
purchases and sales arising under these arrangements are not reflected in this consolidated condensed
interim financial information as such, but are restricted to the amount of facility actually utilised and the
appropriate portion of mark-up thereon.
2.3 Key financial figures of the Islamic Banking branches of the Bank are disclosed in Annexure I to the
unconsolidated condensed interim financial information of the Bank.
2.4 The disclosures made in this consolidated condensed interim financial information have been limited
based on the format prescribed by the State Bank of Pakistan through BSD Circular Letter No. 2
dated May 12, 2004 and the requirements of International Accounting Standard 34, "Interim Financial
Reporting". They do not include all of the information required for the full annual financial statements
and this consolidated condensed interim financial information should be read in conjunction with the
consolidated financial statements of the Group for the year ended December 31, 2015.
38

2.5 Basis of consolidation

Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern
the financial and operating policies of an entity, so as to obtain economic benefits from its activities.

This consolidated condensed interim financial information incorporates the financial statements of
subsidiaries from the date that control commences until the date that control ceases.

Associates are those entities in which the Group has significant influence, but not control, over the
financial and operating polices. Associates as well as investment in mutual funds established under trust
structure (not consolidated as subsidiaries) are accounted for using the equity method.

Non-controlling interests are that part of the net results of operations and of net assets of subsidiaries
attributable to interest which are not owned by the holding company. Material intra-group balances and
transactions are eliminated.

3 STATEMENT OF COMPLIANCE

3.1 This consolidated condensed interim financial information has been prepared in accordance with the
requirements of International Accounting Standard 34 "Interim Financial Reporting", the provisions
of Companies Ordinance, 1984, Banking Companies Ordinance, 1962 and the directives issued by the
Securities and Exchange Commission of Pakistan (SECP) and the State Bank of Pakistan (SBP). In case the
requirements differ, provisions of the Companies Ordinance, 1984, Banking Companies Ordinance, 1962
and the said directives have been followed.

4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

4.1 The principal accounting policies and the methods of computation adopted in the preparation of this
consolidated condensed interim financial information are same as those applied in the preparation of
the financial statements of the Group for the year ended December 31, 2015 except for the following:

Non-banking assets acquired in satisfaction of claims

On January 1, 2016, the State Bank of Pakistan (SBP) vide BPRD circular No. 1 of 2016 issued ‘Regulations
for Debt Property Swaps’. These regulations require banks to measure non-banking assets acquired
in satisfaction of claims at revalued amounts less accumulated depreciation thereon. The valuation of
properties acquired under this head is to be conducted regularly, by professionally qualified evaluators
appearing on the approved panel of the 'Pakistan Banks Association', so as to ensure that their net
carrying value does not materially differ from their fair value. Any surplus arising on revaluation of such
properties is transferred to the 'surplus on revaluation of fixed assets' account, while any deficit arising
on revaluation is charged to profit and loss account directly. In addition, all direct costs, including legal
fees and transfer costs linked with transferring the title of the property to banks is accounted as an
expense in the profit and loss account. Furthermore, under these regulations, revaluation surplus on
such assets shall not be admissible for calculating bank’s Capital Adequacy Ratio (CAR) and exposure
limits under the Prudential Regulations. However, the surplus can be adjusted upon realization of sale
proceeds.

In line with these regulations, The Group, effective January 1, 2016 has changed its accounting policy for
recording of non-banking assets acquired in satisfaction of claims to incorporate the aforementioned
requirements. Prior to this change in accounting policy, Non-banking assets acquired in satisfaction of
claims were carried at cost less impairment, if any. Had the accounting policy not been changed, Non-
banking assets (included in Other Assets in the statement of financial position) would have been lower
by Rs. 37.46 million, surplus on revaluation of assets and deferred tax liabilities would have been lower
by Rs. 24.47 million and Rs. 12.99 million respectively, and profit after tax would have been higher by Rs.
1.006 million.
Bank Alfalah 39
Quarter and Nine Months Report - 30 September 2016

5 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The basis and methods used for critical accounting estimates and judgments adopted in this consolidated
condensed interim financial information are same as those applied in the preparation of the annual
consolidated financial statements of the Group for the year ended December 31, 2015.

6 FINANCIAL RISK MANAGEMENT

The Group's Financial Risk Management objectives and policies are consistent with those disclosed in the
annual consolidated financial statements for the year ended December 31, 2015.

7 LENDINGS TO FINANCIAL INSTITUTIONS Note 30 September 31 December

2016 2015
(Un-audited) (Audited)
(Restated)
(Rupees in '000)

Call money lendings 7.1 8,014,512 15,265,899

Bai Muajjal 7.2 10,098,580 12,360,451
Repurchase agreement lendings (Reverse Repo) 7.3 8,218,412 -
26,331,504 27,626,350

7.1 This represents lending to financial institutions at interest rate range from 0.25% to 9.00% per annum
(December 2015: 0.40% to 12.00% per annum) with maturities upto February 2017 (December 2015:
November 2016).

7.2 This represents Bai Muajjal agreements entered into with State Bank of Pakistan (SBP), whereby the Bank
sold Sukuks having carrying value of Rs. 9,875 million on deferred payment basis. The rates of return
range from 5.69% to 5.97% per annum (December 2015: 5.99% to 8.26% ). They are due to mature by
March 2017 (December 2015: March 2016).

7.3 These represent short term lending to financial institutions against investment securities. These carry
markup rates upto 5.80% per annum (December 2015: Nil) with maturities upto October 2016 (December
31, 2015: Nil).
40

8 INVESTMENTS - NET

8.1 Investments by types Note 30 September 2016 (Un-audited) 31 December 2015 (Audited) (Restated)
Held by Given as Held by Given as
Total Total
Group collateral Group collateral
---------------------------------------------(Rupees in '000) -------------------------------------------
Held-for-trading securities
Market Treasury Bills 17,257,194 - 17,257,194 13,480,197 - 13,480,197
Pakistan Investment Bonds 3,354,311 - 3,354,311 2,423,862 - 2,423,862
Overseas Bonds 555,321 - 555,321 2,990,933 - 2,990,933
Fully paid up ordinary shares / units - Listed 627,021 - 627,021 197,998 - 197,998
21,793,847 - 21,793,847 19,092,990 - 19,092,990
Available-for-sale securities
Market Treasury Bills 41,847,138 3,569,549 45,416,687 78,391,879 494,563 78,886,442
Pakistan Investment Bonds 107,769,397 86,238,957 194,008,354 28,914,704 128,577,363 157,492,067
Fully paid up ordinary shares / units - Listed 5,388,689 - 5,388,689 5,000,753 - 5,000,753
Fully paid up ordinary shares - Unlisted 109,661 - 109,661 4,454,223 - 4,454,223
Term Finance Certificates 518,056 - 518,056 829,594 - 829,594
Preference Shares - Listed 108,835 - 108,835 108,835 - 108,835
Preference Shares - Unlisted 25,000 - 25,000 325,000 - 325,000
Redeemable Participating Certificates 486,270 - 486,270 - - -
Pakistan Euro Bonds 1,382,310 - 1,382,310 2,409,043 - 2,409,043
Overseas Bonds 10,518,171 2,804,839 13,323,010 4,804,159 - 4,804,159
Sukuk Bonds 37,853,494 - 37,853,494 33,280,442 - 33,280,442
206,007,021 92,613,345 298,620,366 158,518,632 129,071,926 287,590,558
Held-to-maturity securities
Market Treasury Bills 2,544,128 - 2,544,128 - - -
Pakistan Investment Bonds 31,885,188 - 31,885,188 66,180,991 - 66,180,991
Other Federal Government Securities - Bai
8.2 26,002,520 - 26,002,520 26,002,520 - 26,002,520
Muajjal
Term Finance Certificates 524,266 - 524,266 524,266 - 524,266
Pakistan Euro Bonds 706,433 - 706,433 3,347,785 - 3,347,785
Overseas Bonds 10,160,983 - 10,160,983 7,920,557 - 7,920,557
Sukuk Bonds 3,898,890 - 3,898,890 4,230,816 - 4,230,816
75,722,408 - 75,722,408 108,206,935 - 108,206,935
Investments in Associates and Mutual Funds
established under Trust Structure not
considered for consolidation
Alfalah Insurance Limited 267,782 - 267,782 241,560 - 241,560
Sapphire Wind Power Company Limited 1,174,559 - 1,174,559 1,006,054 - 1,006,054
Alfalah GHP Money Market Fund 56,562 - 56,562 54,415 - 54,415
Alfalah GHP Income Multiplier Fund 294,390 - 294,390 283,699 - 283,699
Alfalah GHP Sovereign Fund 432,706 - 432,706 423,475 - 423,475
Alfalah GHP Islamic Stock Fund 367,394 - 367,394 359,958 - 359,958
Appollo Pharma Limited 839,450 - 839,450 802,130 - 802,130
Alfalah GHP Income Fund 117,485 - 117,485 113,036 - 113,036
Alfalah GHP Islamic Income Fund 6,585 - 6,585 6,384 - 6,384
Alfalah GHP Value Fund - - - 187,684 - 187,684
Alfalah GHP Cash Fund 527,784 - 527,784 540,918 - 540,918
4,084,697 - 4,084,697 4,019,313 - 4,019,313
Investments at cost 307,607,973 92,613,345 400,221,318 289,837,870 129,071,926 418,909,796
Provision for diminution in value
of investments including associates 8.3 (1,220,864) - (1,220,864) (5,519,811) - (5,519,811)
Investments (net of provisions) 306,387,109 92,613,345 399,000,454 284,318,059 129,071,926 413,389,985
Surplus on revaluation of
held for trading securities - net (16,632) - (16,632) 229,063 - 229,063
Surplus on revaluation of
available for sale securities-net 10,984,706 159,015 11,143,721 9,377,825 522,095 9,899,920
Total investments 317,355,183 92,772,360 410,127,543 293,924,947 129,594,021 423,518,968
Bank Alfalah 41
Quarter and Nine Months Report - 30 September 2016

8.2 This represents Bai Muajjal agreements entered into with Ministry of Finance (MoF), whereby the Bank
sold Sukuks having carrying value of Rs. 25,475 million on deferred payment basis. The rate of return on
these transactions is 5.99% per annum (December 2015: 5.99%). They are due to mature by November
2016 (December 2015: November 2016).

30 September 31 December
2016 2015
(Un-audited) (Audited)
8.3 Movement in provision held against diminution in value of investments (Rupees in '000)

Opening balance 5,519,811 5,390,757

Charge for the period / year 67,849 136,691
Provision adjusted / written off during the period / year (4,366,796) (7,637)
Closing balance 1,220,864 5,519,811

Note 30 September 31 December

2016 2015
8.4 Particulars of provision for diminution in value of (Un-audited) (Audited)
investments by type and segment (Rupees in '000)

Available for sale securities

Listed companies / mutual funds
- Fully paid up ordinary shares / units
- First Dawood Investment Bank Limited 15,000 15,000

- Preference shares
- Agritech Limited 108,835 108,835

Unlisted companies
- Fully paid up ordinary shares of Rs. 10 each
- Pakistan Export Finance Guarantee Agency Limited 5,725 5,725
- Al-Hamra Avenue (Private) Limited 50,000 50,000
- Warid Telecom (Private) Limited (Related party) 8.5 - 4,366,796
- Pakistan Mobile Communications Limited (Related party) 3,936 -

Unlisted securities
- Term finance certificates / sukuks
- Azgard Nine Limited 76,220 76,220
- Security Leasing Corporation Limited I 6,418 6,418
- Security Leasing Corporation Limited II 23,105 23,105
- New Allied Electronics 2,185 2,185
- Fauji Akbar Portia Marine Terminals Limited 127,516 102,069
- Quetta Textile Mills Limited 72,619 37,242

- Preference shares
- Trust Investment Bank Limited 25,000 25,000

Held to maturity securities

Unlisted securities
- Term finance certificates / sukuks
- Agritech Limited 499,586 499,586
- BRR Guardian Modaraba 37,151 34,062
- Security Leasing Corporation Limited 29,245 29,245
- Sitara Peroxide (Private) Limited 113,643 113,643
- Zulekha Textile Mills 24,680 24,680
1,220,864 5,519,811
42

8.5 During the current period, the existing shareholders of Warid Telecom (Private) Limited including the
Bank transferred their holding in Warid Telecom (Private) Limited to Pakistan Mobile Communications
Limited (PMCL), in lieu of acquiring an overall stake of 15 percent in PMCL. This development was in
furtherance of the Acquisition Agreement dated November 26, 2015, as referred to in note 9.11.1 to the
Group's annual consolidated financial statements for the year ended December 31, 2015.
The legal merger of the two companies is expected to be completed in the last quarter of 2016 subject
to the fulfilment of the required legal processes of amalgamation in Pakistan.
Pursuant to the said transfer, the Bank has received 2,223,452 shares of Rs. 10 each in PMCL in lieu of its
holding in Warid Telecom (Private) Limited (pre-acquisition). As a result of this share exchange, the Bank
has recorded the shares acquired in PMCL while its investment in Warid and the related provision held
thereagainst stands de-recognised.

Note 30 September 31 December

2016 2015
(Un-audited) (Audited)
(Restated)
9 ADVANCES - NET (Rupees in '000)

Loans, cash credits, running finances, etc.

- In Pakistan 272,542,012 278,766,376
- Outside Pakistan 11,439,756 11,007,287
283,981,768 289,773,663
Net investment in finance lease
- In Pakistan 3,954,807 3,638,627
- Outside Pakistan - -
3,954,807 3,638,627

Islamic financing and related assets (gross) 43,370,543 43,062,240

Bills discounted and purchased (excluding market treasury bills)

- Payable in Pakistan 4,556,988 6,186,509
- Payable outside Pakistan 8,245,941 7,692,258
12,802,929 13,878,767
344,110,047 350,353,297
Provision against advances 9.2
- Specific provision against non-performing advances (15,575,406) (15,452,915)
- General provision against advances (813,104) (739,904)
(16,388,510) (16,192,819)
327,721,537 334,160,478
Bank Alfalah 43
Quarter and Nine Months Report - 30 September 2016

9.1 Advances include Rs. 18,736 million (2015: Rs. 18,456 million) which have been placed under non-performing status as detailed below:

30 September 2016 (Un-audited)

Classified Advances Provision Required Provision Held
Domestic Overseas Total Domestic Overseas Total Domestic Overseas Total
----------------------------------------------------(Rupees in '000)-------------------------------------------
Category of classification

Other Assets Especially

Mentioned (Agri Financing) 155,867 - 155,867 3,729 - 3,729 3,729 - 3,729
Substandard 1,764,338 - 1,764,338 462,026 - 462,026 462,026 - 462,026
Doubtful 3,801,218 - 3,801,218 2,347,154 - 2,347,154 2,347,154 - 2,347,154
Loss 12,669,027 345,435 13,014,462 12,516,352 246,145 12,762,497 12,516,352 246,145 12,762,497
18,390,450 345,435 18,735,885 15,329,261 246,145 15,575,406 15,329,261 246,145 15,575,406

31 December 2015 (Audited)

Classified Advances Provision Required Provision Held
Domestic Overseas Total Domestic Overseas Total Domestic Overseas Total
----------------------------------------------------(Rupees in '000)-------------------------------------------
Category of classification

Other Assets Especially

Mentioned (Agri Financing) 115,219 - 115,219 2,547 - 2,547 2,547 - 2,547
Substandard 2,052,587 54,595 2,107,182 524,432 70,795 595,227 524,432 70,795 595,227
Doubtful 2,554,443 5,506 2,559,949 1,502,617 1,587 1,504,204 1,502,617 1,587 1,504,204
Loss 13,111,084 562,325 13,673,409 12,936,545 414,392 13,350,937 12,936,545 414,392 13,350,937
17,833,333 622,426 18,455,759 14,966,141 486,774 15,452,915 14,966,141 486,774 15,452,915

9.2 Particulars of provisions against non-performing loans and advances

Nine months period ended Year ended

30 September 2016 (Un-audited) 31 December 2015 (Audited)
Specific General Total Specific General Total
------------------------------(Rupees in '000)------------------------------

Opening balance 15,452,915 739,904 16,192,819 13,601,667 649,503 14,251,170

Exchange adjustment and

other movements during the period / year 883 (108) 775 31,406 3,300 34,706

Charge for the period / year 1,763,659 117,230 1,880,889 3,921,493 146,652 4,068,145
Reversals / recoveries during the period / year (1,569,859) (43,922) (1,613,781) (1,858,385) (59,551) (1,917,936)
193,800 73,308 267,108 2,063,108 87,101 2,150,209

Amounts written off during the period / year (72,192) - (72,192) (243,266) - (243,266)

Closing balance 15,575,406 813,104 16,388,510 15,452,915 739,904 16,192,819

44

9.2.1 The additional profit arising from availing the forced sales value (FSV) benefit - net of tax at 30
September 2016 which is not available for distribution as either cash or stock dividend to shareholders
and bonus to employees amounted to Rs. 110.729 million (December 2015: Rs. 110.774 million).

9.2.2 General provision against consumer loans represents provision maintained at an amount equal to 1.5%
of the fully secured performing portfolio and 5% of the unsecured performing portfolio as required by
the Prudential Regulations issued by the State Bank of Pakistan. General reserve of at least equivalent
to 1% of the secured and performing SE portfolio and 2% of the unsecured and performing SE portfolio
is also maintained as required under Prudential Regulations for Small and Medium Enterprise Financing.

30 September 31 December
2016 2015
(Un-audited) (Audited)
(Rupees in '000)
10 OPERATING FIXED ASSETS

Capital work-in-progress 912,748 704,981

Tangible fixed assets 15,842,331 15,532,465
Intangible assets 1,301,929 1,080,245
18,057,008 17,317,691

Nine months period ended

30 September 30 September
2016 2015
(Un-audited)
10.1 Additions to operating fixed assets (Rupees in '000)

Office premises 666,281 1,060

Leasehold improvements 90,143 479,280
Office equipments 586,971 750,187
Furniture and fixtures 44,097 58,701
Vehicles 36,337 15,236

10.2 Additions to Intangibles

Computer software 481,358 279,085

10.3 Disposals of operating fixed assets

Leasehold improvements 141 -

Office equipments 105,598 49,851
Furniture and fixtures 24,279 28,566
Vehicles 26,773 37,352

Note 30 September 31 December

2016 2015
(Un-audited) (Audited)
11 BORROWINGS (Rupees in '000)

Secured
Borrowings from State Bank of Pakistan 16,077,487 17,430,111
Repurchase agreement borrowings 11.1 92,613,345 129,071,926
Borrowings of foreign operations 57,638 -
108,748,470 146,502,037
Unsecured
Call borrowings 11.2 19,283,041 17,901,900
Bai Muajjal - 7,935,453
Overdrawn nostro accounts - 53,808
19,283,041 25,891,161
128,031,511 172,393,198
Bank Alfalah 45
Quarter and Nine Months Report - 30 September 2016

11.1 This represents repurchase agreement borrowing from SBP and other banks at the rate of 0.90% and
5.88% per annum respectively (2015: 6.04% and 6.50% per annum) having maturities upto October 2016
(2015: January 2016).
11.2 This represents borrowings from financial institutions at mark-up rates ranging from 0.55% to 5.79%
per annum (2015: 0.50% to 6.08% per annum) having maturities upto January 2017 (2015: March 2016).

30 September 31 December
12 DEPOSITS AND OTHER ACCOUNTS 2016 2015
(Un-audited) (Audited)
(Rupees in '000)
Customers
Fixed deposits 121,637,376 137,604,333
Savings deposits 228,399,145 210,368,288
Current accounts - non-remunerative 254,603,399 234,743,586
Others 7,537,898 6,849,023
612,177,818 589,565,230
Financial institutions
Remunerative deposits 26,627,842 48,877,152
Non-remunerative deposits 2,539,742 1,694,779
29,167,584 50,571,931
641,345,402 640,137,161

13 CONTINGENCIES AND COMMITMENTS

13.1 Direct credit substitutes

i) Government 2,160,591 743,580

ii) Banking companies and other financial institutions - 311,835
iii) Others 118,986 2,094,645
2,279,577 3,150,060
13.2 Transaction - related contingent liabilities

i) Government 33,253,827 27,412,625

ii) Banking companies and other financial institutions 447,908 163,826
iii) Others 10,433,474 12,719,286
44,135,209 40,295,737
13.3 Trade - related contingent liabilities

Letters of credit 60,321,845 52,107,916

Acceptances 11,191,692 15,797,161

13.4 Other contingencies

Claims against the Bank not acknowledged as debts 13,777,344 14,861,738

13.4.1 These mainly represents counter claims filed by the borrowers for restricting the Bank from disposal of
assets (such as hypothecated / mortgaged / pledged assets kept as security), damage to reputation and
cases filed by Ex. employees of the Bank for damages sustained by them consequent to the termination
from the Bank's employment. Based on legal advice and / or internal assessment, management is
confident that the matters will be decided in Bank's favour and the possibility of any outcome against
the Bank is remote and accordingly no provision has been made in this consolidated condensed interim
financial information.
13.4.2 There is no change in the contingency relating to amount debited in Bank's nostro account in New York,
United States of America from that disclosed in the consolidated annual audited financial statements for
the year ended 31 December 2015.
46

30 September 31 December
2016 2015
(Un-audited) (Audited)
(Rupees in '000)
13.5 Commitments in respect of forward lendings
Commitments to extend credit 22,482,052 5,222,555
13.6 Commitments in respect of forward exchange contracts
Purchase 60,831,941 98,261,212
Sale 61,024,376 106,520,120
13.7 Commitments for the acquisition of operating fixed assets 358,228 291,237
13.8 Commitments in respect of investments 4,824,644 -
13.9 Commitments in respect of repo transactions
Repurchase 92,714,550 129,226,010
Resale 8,222,328 -
13.10 Other commitments
Interest rate swaps 7,643,012 6,962,920
Donations 22,000 22,000
13.11 Contingencies for tax payable (note 16)
Nine months period ended
30 September 30 September
2016 2015
(Un-audited)
14 EARNINGS PER SHARE (Rupees in '000)

14.1 BASIC EARNINGS PER SHARE

Profit for the period attributable to equity holders of the Bank 6,398,595 5,944,918

(Number of shares in thousands)

Weighted average number of ordinary shares 1,593,457 1,589,536
(Rupees)
Basic earnings per share 4.02 3.74

14.2 DILUTED EARNINGS PER SHARE (Rupees in '000)

Profit for the period attributable to equity holders of the Bank 6,398,595 5,944,918
(Number of shares in thousands)
Weighted average number of ordinary shares 1,601,098 1,589,536
(Rupees)
Diluted earnings per share 4.00 3.74

30 September 31 December
2016 2015
(Un-audited) (Audited)
(Rupees in '000)
15 CASH AND CASH EQUIVALENTS

Cash and balances with treasury banks 63,640,414 62,368,827

Balances with other banks 8,871,217 16,583,138
Call money lendings 8,014,512 14,728,532
Overdrawn nostro accounts - (53,808)
80,526,143 93,626,689
Bank Alfalah 47
Quarter and Nine Months Report - 30 September 2016

16 TAXATION

The income tax assessments of the Bank have been finalized upto and including tax year 2015. Matters of
disagreement exist between the Bank and tax authorities for various assessment years and are pending
with the Commissioner of Inland Revenue (Appeals), Appellate Tribunal Inland Revenue (ATIR), High Court
of Sindh and Supreme Court of Pakistan. These issues mainly relate to addition of mark up in suspense
to income, taxability of profit on government securities, bad debts written off and disallowances relating
to profit and loss expenses.

In respect of tax years 2008, 2011, 2012, 2013 and 2015, the tax authorities have raised certain issues
including disallowance of expenditure on account of non-deduction of withholding tax, default in
payment of WWF, allocation of expenses to dividend and capital gains and dividend income from mutual
funds not being taken under income from business, resulting in additional demand of Rs.1,452.536 million.
As a result of appeal filed before Commissioner Appeals against these issues, relief has been provided
for tax amount of Rs.1,023.719 million whereas appeal effect orders are pending. The management's
appeals on certain issues are pending before Commissioner Appeals. The management is confident that
this matter will be decided in favour of the Bank and consequently has not made any provision in respect
of these amounts.

The Bank has received amended assessment orders for Tax Years from 2010 to 2013 wherein Tax
Authorities have disallowed depreciation on Ijara Assets considering it Finance Lease and raised a tax
demand of Rs.990.423 million. As a result of appeal filed before Commissioner Appeal, relief is provided
to the Bank to the extent of principal amount which is part of Ijarah rentals and should not be taxed.
Accordingly tax amount is reduced to Rs.96.160 million. The Bank has filed appeal before Appellate
Tribunal. The Bank has not made any provision against these orders and the management is of the view
that the matter will be settled in Bank's favour through appellate process.

In respect of monitoring of withholding taxes, the Bank has received various orders from tax authorities.
The Bank has not made provision amounting to Rs.510.380 million against tax demand (after reduction on
rectifications) for tax years 2009 to 2015. The Bank intends to obtain relief through rectification orders.
The management is of the view that the matter will be settled in Bank's favour.

The Bank has received an order from a provincial tax authority wherein tax authority has disallowed
certain exemptions of sales tax on banking services and demanded sales tax and penalty amounting
to Rs.97.560 million (excluding default surcharge) for the period from July 2011 to June 2014. Bank's
appeal against this order is currently pending before Commissioner Appeals. The Bank has not made any
provision against this order and the management is of the view that the matter will be settled in Bank's
favour through appellate process.

17 RELATED PARTY TRANSACTIONS

Parties are considered to be related if one party has the ability to control the other party or exercise
significant influence over the other party in making financial or operational decisions and include major
shareholders, subsidiary company, associated companies with or without common directors, retirement
benefit funds and directors and key management personnel and their close family members.

Banking transactions with the related parties are executed substantially on the same terms, including
mark-up rates and collateral, as those prevailing at the time for comparable transactions with unrelated
parties and do not involve more than a normal risk.

Contributions to and accruals in respect of staff retirements and other benefit plans are made in
accordance with the actuarial valuations / terms of the contribution plan. Remuneration to executives is
determined in accordance with the terms of their appointment.
48

17.1 Details of transactions with the related parties and balances with them as at period end / year end are as follows:

30 September 2016 (Un-audited)

Group /
Key
Associated
Directors Management Associates Total
Companies /
Personnel
Others
------------------------------(Rupees in '000)-----------------------------
Deposits
Balance at beginning of the period 14,825 120,281 6,095,252 350,316 6,580,674
Placements during the period 95,919 872,356 72,521,077 33,087,927 106,577,279
Withdrawals / adjustments during the period (89,732) (845,719) (72,337,931) (32,429,160) (105,702,542)
Balance at end of the period 21,012 146,918 6,278,398 1,009,083 7,455,411

Advances
Balance at beginning of the period - 328,280 6,339,450 - 6,667,730
Disbursements / adjustments during the period - 179,896 14,994,709 - 15,174,605
Repayments / adjustments during the period - (212,092) (13,757,691) - (13,969,783)
Balance at end of the period - 296,084 7,576,468 - 7,872,552

Provision held against advances - - 864,845 - 864,845

Investments
Balance at beginning of the period - - 4,716,796 4,019,313 8,736,109
Investments during the period - - 1,722,235 - 1,722,235
Redemption / adjustments during the period - - (4,666,796) 65,384 (4,601,412)
Balance at end of the period - - 1,772,235 4,084,697 5,856,932

Provision held against investments - - 50,000 - 50,000

Call borrowings / Repo

Balance at beginning of the period - - - - -
Borrowings during the period - - 1,200,000 - 1,200,000
Repayments during the period - - (1,200,000) - (1,200,000)
Balance at end of the period - - - - -

Call lendings / Reverse repo

Balance at beginning of the period - - - - -

Placements during the period - - 5,000,000 - 5,000,000
Withdrawals during the period - - (5,000,000) - (5,000,000)
Balance at end of the period - - - - -
Bank Alfalah 49
Quarter and Nine Months Report - 30 September 2016

31 December 2015 (Audited)

Group /
Key
Associated
Directors Management Associates Total
Companies /
Personnel
Others
------------------------------- (Rupees in '000) --------------------------------
Deposits

Balance at beginning of the year 38,398 71,170 5,054,223 453,398 5,617,189

Placements during the year 168,409 1,271,256 81,661,921 29,668,778 112,770,364
Withdrawals / adjustments during the year (191,982) (1,222,145) (80,620,892) (29,771,860) (111,806,879)
Balance at end of the year 14,825 120,281 6,095,252 350,316 6,580,674

Advances
Balance at beginning of the year - 280,630 3,828,522 - 4,109,152
Disbursements during the year - 324,922 22,147,792 - 22,472,714
Repayments / adjustments during the year - (277,272) (19,636,864) - (19,914,136)
Balance at end of the year - 328,280 6,339,450 - 6,667,730

Provision held against advances - - 185,627 - 185,627

Investments
Balance at beginning of the year - - 4,416,796 3,446,271 7,863,067
Investments during the year - - - 1,867,710 1,867,710
Redemptions / adjustments during the year - - 300,000 (1,294,668) (994,668)
Balance at end of the year - - 4,716,796 4,019,313 8,736,109

Provision held against investments - - 4,416,796 - 4,416,796

Call borrowings / Repo

Balance at beginning of the year - - - - -
Borrowings during the year - - 1,300,000 - 1,300,000
Repayments during the year - - (1,300,000) - (1,300,000)
Balance at end of the year - - - - -

Call lendings / Reverse repo

Balance at beginning of the year - - - - -
Borrowings during the year - - 17,825,000 - 17,825,000
Repayments during the year - - (17,825,000) - (17,825,000)
Balance at end of the year - - - - -

30 September 31 December
2016 2015
(Un-audited) (Audited)
(Rupees in '000)
17.2 Advances
Running finance 1,047,288 760,958
Long term loans 6,825,264 5,906,772

17.3 Contingencies and commitments

Letter of credit, acceptance & Guarantees outstanding 1,722,845 3,134,931

17.4 Customer Accounts

PLS accounts 2,900,985 3,264,885
Current accounts 1,043,533 1,047,644
Fixed deposit accounts 3,510,893 2,268,145
50

Nine months period ended

30 September 30 September
2016 2015
(Un-audited)
(Rupees in '000)
17.5 Transactions with Associates and Others

Associates
Mark-up expense on deposits / TFCs 34,023 31,880
Rent Income from Alfalah Insurance Limited 1,747 1,497
Dividend paid to Alfalah Insurance Limited 500 1,000
Dividend income from Alfalah GHP Money Market Fund   4,210 -
Dividend income from Alfalah GHP Sovereign Fund 9,253 26,944
Dividend income from Alfalah GHP Islamic Stock Fund 45,320 40,867
Dividend income from Alfalah GHP Cash Fund 32,926 47,082
Dividend income from Alfalah GHP Income Multiplier Fund 10,270 23,284
Dividend income from Alfalah GHP Income Value Fund - 22,434
Insurance premium paid to Alfalah Insurance Limited 537,588 529,001
Management Fee earned from funds 203,419 132,122
Reimbursement of expenses from funds 15,352 -
Sales load earned from funds 38,953 7,347
Investment made in fund units 1,151 243,229
Redemption in investment in fund units 9,501 9,501
Realized gain on redemption in investment in fund units 499 499
Payment made on behalf of fund 132 132
Dividend income from fund 12,356 -
Capital Gain on sale of units of Alfalah GHP Money Market Fund - 46,672
Capital Gain on sale of units of Alfalah GHP Value Fund 104,800 -
Capital Gain on sale of units of Alfalah GHP Cash Fund - 25,085

Others
Mark-up income 253,309 262,565
Mark-up expense on deposits 110,478 40,322
Rent income from Wateen Telecom (Private) Limited - 1,766
Rent income from Warid Telecom (Private) Limited 12,339 12,915
Rent expense paid pertaining to Wateen Telecom (Private) Limited 4,264 8,550
Interest received on placements with Silk Bank 856 4,307
Mark-up paid to Taavun (Private) Limited on TFCs Issued 37,410 37,425
Mark-up paid to Key Management Personnel on TFCs Issued 14,518 12,110
Amount received on Redemption of Silk Bank Preference Shares 439,200 -
Interest paid on Borrowings from Silk Bank 195 128
Payment to Institute of Bankers of Pakistan for calendars and diaries etc. 2,512 303
Payment to Wateen Telecom (Private) Limited and Wateen Solutions (Private)
Limited for purchase of equipment and maintenance charges 100,555 100,611
Payment to Monet (Private) Limited for Branchless banking services 144,821 142,309
Payment to Al-Qudees & Co 10,263 25,006
Payment to Locker Smiths (Private) Limited 10,675 -
Payment to Sundar Interiors & Architects 4,525 49,884
Payment to Timber Links 2,484 8,768
Payment to Expressive Safety & Security Solutions 8,971 4,293
Payment to Olive International (Private) Limited 1,525 5,571
Payment to Computer Marketing Co. (Private) Limited. 15,258 6,922
Payment to K-Tabs 16,112 16,205
Payment to MEC Engineer 9,324 2,661
Payment to Tahiri Printers 5,946 -
Payment to Bawany Traders 4,102 -
Contribution to employees provident fund 248,196 227,455
Charge in respect of gratuity 211,678 223,326
Provision against advances on Wateen Telecom (Private) Limited 679,385 -
Provision against advances on Wateen Wimax (Private) Limited 185,460 -
Commission received from Warid Telecom (Private) Limited 1,828 6,643
Bank Alfalah 51
Quarter and Nine Months Report - 30 September 2016

30 September 31 December
2016 2015
(Un-audited) (Audited)
(Rupees in '000)
17.6 Balances with Associates and Others

Associates
Advance Rent from Alfalah Insurance Limited 208 1,955
Advance against issuance of Shares - Sapphire Wind Power Limited 112,350 112,350
TFCs held by Alfalah GHP Income Multiplier Fund 6,116 6,119
TFCs held by Alfalah GHP Income Fund 72,887 87,899
Management Fee Receivable from funds 129,746 51,519
Sales load receivable from funds 9,338 16,714
Reimbursement of expenses from funds 16,673 -
Investment in funds units 346,115 318,655
Receivable against formation of funds 6,817 5,101
Insurance payable for General and Health - 183

Others
Mark-up suspended on advances to Warid Telecom (Private) Limited 61,270 42,582
Mark-up suspended on advances to Wateen Telecom (Private) Limited 766,553 644,122
Mark-up suspended on advances to Wateen Wimax 13,943 5,587
Advance Rent from Warid Telecom (Private) Limited 12,632 8,206
Rent receivable from Warid Telecom (Private) Limited 195 -
Rent payable to Wateen Telecom (Private) Limited - 750
Commission receivable from Warid Telecom (Private) Limited 7,949 -
TFCs held by Taavun (Private) Limited 498,700 498,800
TFCs held by Key Management Personnel 193,535 186,591

Nine months period ended

30 September 30 September
2016 2015
(Un-audited)
(Rupees in '000)
17.7 Key management personnel

Salaries and Allowances 1,060,289 932,711

Fair value charge against employee stock option scheme 87,348 37,075

In addition the Chief Executive Officer and other executive officers are provided with the Bank maintained
car as per Bank's policy.

18 GENERAL

Comparative information has been re-classified, re-arranged or additionally incorporated in this

consolidated condensed interim financial information, to facilitate comparison and to conform with
changes in presentation in the current period.
18.1 During the current period, the State Bank of Pakistan (SBP), vide BPRD Circular Letter No. 05 of 2016
dated February 29, 2016 has issued instructions on revised forms of annual financial statements, which
further supplements the requirements laid down earlier, vide SBP's BSD Circular No. 4 of 2006 and BSD
Circular Letter No. 03 of 2013 on the matter.
In order to standardize the financial statements and to bring comparability, banks having IBBs have been
advised to show Islamic Financing and Related Assets under the head of “Advances” in their financial
statements. In addition, banks have also been advised to show Bai Muajjal of Government of Pakistan
Ijara Sukuk with State Bank of Pakistan and other Financial Institutions under the head “Lendings to
Financial Institutions" , whereas Bai Muajjal transactions with Government of Pakistan are required to be
reported under investment category as other Federal Government securities.
52

The effect of re-classification on comparative information presented for the year ended 31 December
2015 as part of the Statement of Financial Position is as follows:

As at 31 December 2015
As previously Effect of Re-
As restated
reported classification

Lending to Financial Institutions 53,628,870 (26,002,520) 27,626,350

Investments - net 397,516,448 26,002,520 423,518,968
Advances - net 327,299,560 6,860,918 334,160,478
Other assets 28,701,223 (6,860,918) 21,840,305

18.2 In addition to the aforementioned, no significant reclassification has been made except as follows:

Reclassified

Description Rupees in '000 From To

Mark-up / return /
Insurance expenses on Ijarah assets (216,423) Other Income
interest earned
Mark-up / return /
Registration expenses on Ijarah assets (49,699) Other Income
interest earned
Mark-up / return /
Rental income on Ijarah assets 250,917 Other Income
interest earned

19 DATE OF AUTHORISATION

The consolidated condensed interim financial information was authorised for issue on 26 October 2016
by the Board of Directors of the Bank.

Chief Executive Officer

Bank Alfalah 53
Quarter and Nine Months Report - 30 September 2016

Branch Network
Bank Alfalah Presence in Pakistan

No. of branches
Sr # Location
Conventional Islamic Total

1 Karachi 81 36 117
2 Lahore 62 31 93
3 Islamabad 24 9 33
4 Rawalpindi 26 8 34
5 Faisalabad 18 11 28
6 Quetta 14 4 18
7 Peshawar 11 4 15
8 Multan 9 6 15
9 Hyderabad 6 2 8
10 Gujranwala 8 2 10
11 Gujrat 3 2 5
12 Sialkot 4 3 7
13 Sargodha 3 2 5
14 Abbottabad 2 1 3
15 Dera Ismail Khan 2 1 3
16 Jhelum 2 1 3
17 Mansehra 2 1 3
18 Taxila 3 0 3
19 Bahawalpur 2 1 3
20 Dera Ghazi Khan 1 1 2
21 Ghotki 2 0 2
22 Gilgit 2 0 2
23 Haripur 2 0 2
24 Hub 1 1 2
25 Jaranwala 2 0 2
26 Jhang 2 1 3
27 Kamra 2 0 2
28 Kohat 2 0 2
29 Mardan 2 0 2
30 Mingora 1 1 2
31 Mirpur 2 0 2
32 Mirpurkhas 1 1 2
33 Okara 2 1 3
34 Rahim Yar Khan 2 1 3
35 Sadiqabad 1 1 2
36 Sahiwal 3 1 4
37 Sheikhupura 2 0 2
38 Sukkur 1 1 2
39 Ahmedpur East 1 0 1
40 Ali pur 1 0 1
41 Allah Abad 1 0 1
42 Arifwala 1 0 1
43 Attock 1 0 1
44 Badin 1 0 1
45 Bahawalnagar 1 1 2
46 Bannu 2 0 2
47 Batkhela 1 0 1
48 Battagram 1 0 1
49 Besham 1 0 1
50 Bewal 0 1 1
51 Bhakkar 1 0 1
52 Bhalwal 1 0 1
53 Bhera 1 0 1
54 Buner 1 0 1
55 Burewala 1 0 1
56 Chak Khasa 1 0 1
57 Chak No. 111 SB 1 0 1
58 Chakwal 2 0 2
54

No. of branches
Sr # Location
Conventional Islamic Total

59 Chaman 1 0 1
60 Charsadda 1 0 1
61 Chichawatni 1 0 1
62 Chillas 1 0 1
63 Chiniot 1 0 1
64 Chishtian 1 0 1
65 Chitral 1 0 1
66 Choa Saidan Shah 1 0 1
67 Dadu 1 0 1
68 Daharki 1 0 1
69 Daska 1 0 1
70 Daultala 1 0 1
71 Depalpur 1 0 1
72 Dera Murad Jamali 1 0 1
73 Dhudial 0 1 1
74 Digri 0 1 1
75 Dina 1 0 1
76 Dinga 1 0 1
77 Dukki 1 0 1
78 Farooqabad 1 0 1
79 Fateh Jang 1 0 1
80 Ferozwala 1 0 1
81 Fort Abbas 1 0 1
82 Gaggo Mandi 1 0 1
83 Gahkuch 1 0 1
84 Gawadar 1 0 1
85 Ghazi 1 0 1
86 Ghourghushti 1 0 1
87 Gojra 1 0 1
88 Gojra Malakwal Tehsil 1 0 1
89 Gujar Khan 1 0 1
90 Haaveli Lakha 1 0 1
91 Hafizabad 1 0 1
92 Hangu 1 0 1
93 Haroonabad 1 0 1
94 Hasan Abdal 0 1 1
95 Hasilpur 1 0 1
96 Havelian 1 0 1
97 Hazro 1 0 1
98 Hunza Nagar 1 0 1
99 Jacobabad 1 0 1
100 Jahania 1 0 1
101 Jalalpur Bhattian 1 0 1
102 Jalalpur Jattan 0 1 1
103 Jampur 1 0 1
104 Jauharabad 1 0 1
105 Kabirwala 0 1 1
106 Kahuta 1 0 1
107 Kallar Syedan 1 0 1
108 Kamalia 0 1 1
109 Kamoke 1 0 1
110 Kandhkot 1 0 1
111 Kasur 1 0 1
112 Khairpur 1 0 1
113 Khanewal 1 0 1
114 Khanpur 1 0 1
115 Kharian 1 0 1
116 Khurrianwala 1 0 1
Bank Alfalah 55
Quarter and Nine Months Report - 30 September 2016

No. of branches
Sr # Location
Conventional Islamic Total

117 Khushab 0 1 1
118 Kot Abdul Malik 0 1 1
119 Kot Addu 0 1 1
120 Kot momin 1 0 1
121 Kotla 1 0 1
122 Kotli 1 0 1
123 Lala Musa 1 0 1
124 Larkana 1 0 1
125 Layyah 1 0 1
126 Liaqatpur 1 0 1
127 Lodhran 1 0 1
128 Loralai 1 0 1
129 Mailsi 0 1 1
130 Malakwal 1 0 1
131 Mamu Kanjan 1 0 1
132 Mandi Bahauddin 1 1 2
133 Mandi Faizabad 1 0 1
134 Mandi Quaidabad 1 0 1
135 Mandi Sadiq Gunj 1 0 1
136 Matli 1 0 1
137 Mian Channu 1 0 1
138 Mianwali 1 1 2
139 Mirpur Mathelo 1 0 1
140 Moro 1 0 1
141 Muridke 1 0 1
142 Murree 1 0 1
143 Muslim Bagh 1 0 1
144 Mustafabad 1 0 1
145 Muzaffarabad 1 1 2
146 Muzaffargarh 1 0 1
147 Nankana Sahib 1 0 1
148 Narowal 1 0 1
149 Nawabshah 1 0 1
150 Nowshera 1 0 1
151 Nowshera Virkan 1 0 1
152 Oghi 1 0 1
153 Pakpattan 1 0 1
154 Pattoki 1 0 1
155 Phalia 1 0 1
156 Pindi Gheb 0 1 1
157 Pir Mahal 1 0 1
158 Pishin 1 0 1
159 Qaboola 1 0 1
160 Rabwah 1 0 1
161 Rajanpur 1 0 1
162 Rawat 1 0 1
163 Renala Khurd 1 0 1
164 Sambrial 1 0 1
165 Samundri 1 0 1
166 Sanghar 1 0 1
167 Sangla Hill 0 1 1
168 Sarai Alamgir 0 1 1
169 Saraqpur 1 0 1
170 Serai Naurang 1 0 1
171 Shahdadpur 1 0 1
172 Shahkot 0 1 1
173 Shahpur 0 1 1
174 Shakargarh 1 0 1
56

No. of branches
Sr # Location
Conventional Islamic Total

175 Shinkiari 1 0 1
176 Shorkot 1 0 1
177 Shujabad 1 0 1
178 Sibi 1 0 1
179 Sillanwali 1 0 1
180 Skardu 1 0 1
181 Swabi 1 0 1
182 Swat 1 0 1
183 Talagang 1 0 1
184 Tando Adam 1 0 1
185 Tando Allahyar 1 0 1
186 Temargarha 1 0 1
187 Toba Tek Singh 1 0 1
188 Turbat 1 0 1
189 Uch Sharif 1 0 1
190 Umerkot 1 0 1
191 Vehari 0 1 1
192 Wah Cantt 1 0 1
193 Waisa 1 0 1
194 Wazirabad 1 0 1
195 Yazman 1 0 1
196 Zafarwal 1 0 1
197 Zhob 1 0 1
198 Sihala 1 0 1
199 Bhowana 1 0 1
200 Dadyal, AJK 1 0 1
201 Bhimber, AJK 1 0 1
202 Chowk Azam 1 0 1
203 Khoiratta, AJK 1 0 1
204 Gondal 1 0 1
205 Pano Aqil 1 0 1
206 Ghakkar 1 0 1
207 Chak Jhumra 1 0 1
208 Mehrabpur 1 0 1
209 Taunsa Sharif 1 0 1
210 Alipur Chatta 1 0 1
211 Kahror Pacca 1 0 1
212 Shikarpur 1 0 1
213 Mehar 1 0 1
214 Shahdadkot 1 0 1
215 Usta Mohammad 1 0 1
216 Jalalpur Pirwala 1 0 1
217 Siranwali 1 0 1
218 Kotli Loharan 1 0 1
219 Abdul Hakim 0 1 1
220 Phoolnagar 1 0 1
221 Islamgarh, AJK 1 0 1
222 Rawalakot 1 0 1
223 Gulbahar 1 0 1
224 Khan Bela 1 0 1
225 Pasrur 1 0 1
Total 486 158 644
Bank Alfalah 57
Quarter and Nine Months Report - 30 September 2016

Bank Alfalah Presence In Foreign Countries

Sr # Location No. of branches

Bangladesh

1 Dhaka 4

2 Chittagong 1

3 Sylhet 1

4 Dhanmondi 1

Afghanistan

1 Kabul 2

2 Herat 1

Bahrain (WBU)

1 Manama 1

Total 11