Annual Report 2024

Dar Al-Maal Al-Islami Trust has completed the biggest ever conversion into a full-fledge Islamic bank. Accordingly, with effect from January 2023, FBL has been operating as a full-fledged Islamic bank. FBL continued expansion of its retail network in Pakistan, digitalization, and enhancement of services. In 2024 and 2025, FBL has made significant strides in integrating Environmental, Social, and Governance (ESG) principles into its operations. The bank's commitment to sustainability was recognized with the prestigious PICG’s ESG Stewardship Award in 2024, underscoring its dedication to responsible banking practices. FBL's efforts in diversity, equity, and inclusion (DEI) were also acknowledged, as the Bank secured fourteen awards at the Global Diversity, Equity & Inclusion Benchmark (GDEIB) Awards 2025, including 10 Best Practice Awards and 4 Progressive Category Awards. This achievement reflects a 25% increase in its inclusivity score, positioning FBL among the topmost inclusive organizations globally. On a standalone basis, FBL has achieved a Profit after Tax (PAT) of PKR 23 billion 82.7 million), 15% higher than PKR 20 billion ($ 72.1 million) earned in 2023. Furthermore, Earnings Per Share exhibited a commendable rise, surging from PKR 13.21 in 2023 to PKR 15.17 in 2024. During the year 2023, the Bank continued its growth trajectory and increased total revenue by 18% over 2023, fromPKR 83 billion ($ 298million) in 2023 to PKR 97.7 billion in 2024 ($350 million). Robust growth in the balance sheet coupled with an increase in spreads led to a year-on-year growth of 13% in net spread earned, taking it to PKR 80.3 billion ($ 289 million). Healthy growth in current deposits (from customers and financial institutions) of PKR 83 billion ($298 million) (26.4%) and the increase in the average benchmark rate helped improve overall spreads. Non-Funded income grew by 44% from PKR 12.1 billion ($ 44 million) in 2023 to PKR 17.4 billion ($62.4 billion) in 2024. As a result of prevailing circumstances of historically high inflation, a depreciating PKR relative to the USD, and an expanding branch network to 855 branches, the Bank's total expenses have risen by 22.5 % over 2023 and the cost to income ratio has increased from 49% in 2023 to 50.9% in 2024. The net provision for 2023 was a reversal PKR 2.46 billion ($ 8.8 million), compared to a provision of PKR 0.91 billion in 2023 ($ 8.6 million). The impairment ratio continued to reduce to 3.6% with total provision coverage at 89%. As a result of strong deposit mobilization, FBL total assets continued to grow to PKR 1.6 trillion ($ 5.7 billion). The upward trend in Current Accounts seen over the past few years continued, taking them to PKR 397 billion ($ 142 million i.e., 26.4% growth over 2023. Saving Accounts increased to PKR 485 billion i.e., 11% growth over 2023. Total deposits crossed PKR 1 trillion ($3.62 billion) mark and increased by 3% over 2023, with slight reduction in market share from 3.7% to 3.4% in 2024. The CASAmix increased from 75% in 2023 to 85.5% in 2024. Pursuant to strengthen its capital base, FBL has maintained its Capital Adequacy Ratio (CAR) at 16.5%. Islamic Investment Company of the Gulf (Bahamas) Limited (“IICG”), DMI’s wholly owned subsidiary, reported a net profit of $ 12.3 million in 2024 primarily from Management fee, compared to $ 12.5 million in 2023. Shareholders’ equity in 2024 increased to $128 million compared to $124million in 2023. IICG’s total assets reported an increase by 8%, from $136 million in 2023, to $147 million in 2024. The increase is primarily attributed to an increase in amounts due