1. HABIB BANK LIMITED

2. Contents of Discussion
• Mission Statement
• Introduction
• History
• Level of
Management

3. Contents of Discussion (Cont..)
• Environmental Challenges
• Products & Services
• Assets
• Shares
• Sponsors

4. Contents of Discussion (Cont..)
• Competitors
• SWOT Analysis
• Achievements

5. Mission Statement
To be recognized as the leading
financial institution of Pakistan
and dynamic international bank in
the emerging markets, providing
our customers with a premium set
of innovative product and
services, and granting superior
value to our stakeholders,
shareholders, customers and
employees.

6. INTRODUCTION
 HBL establish itself in the Quaid’s city
(Karachi) on 8 August 1947.
 Habib Bank Group is leader in Pakistan’s
Service Industry.
 Extensive network of 1501 branches
spread over 26 countries.
 It was Privatized during the start of 21st
century in 2004.
 Pioneer in providing innovative services
such as:
 First installation of mainframe computer in
Pakistan.
 Followed by ATM service and Internet Banking
facilities.

7. History
 Young boy “Ismail Habib” reached Bombay in search of
job.
 Got job in utensils and non-ferrous metals.
 Intelligent and keen to his work & selected as President of
the market.
 Expanded business and engaged in Private Banking.

8. Level of Management & Board of
Directors
President & CEO: Mr. Zakir Mehmood
Board of Directors
 Mr. Zakir Mehmood (President & CEO)
 Mr. Sultan Ali Allana (Chairman)

9. Level of Management & Board of
Directors
 Mr. Ahmed Jawad
 Mr. Sajid Zahid
 Mr. Sikandar Mustafa

10. Level of Management & Board of
Directors
 Mr. Mushtaq Malik
 Mr. Moez Jamal

11. ENVIRONMENTAL CHALLENGES
• A broad view of market is important when
management is interested in introducing
better services for customers. Factors that
influence buyers and thus change the size
and composition of market overtime
involves initially building customer profiles.
These influences include:
• Political and Legal Environment
• Economic Trends
• Socio Cultural Environment
• Technological Factors
• Terrorism (Latest)

12. POLITICAL AND LEGAL ENVIRONMENT
• Banks are strongly affected by the political and legal
considerations.
• This environment is composed of regulatory agencies and
government law that influence and limit various
organizations and individuals.
• Mostly these laws create new opportunities for business.
• Business legislations has following purposes:
 To protect banking companies from unfair competition.
 To protect consumers from unfair business practices adopted by
banking companies
 To protect the interest of the society from unbridled business
behavior.

13. Economic Trends
• A banking market requires better consumer
market in volume along with higher
borrowing power. The available borrowing
power depends on:
 Consumer Income
 Saving rates
 Consumption Patrons
 Rates of Interest
 Budget Deficit
 Exchange rates
 Cost of living
 Inflation

14. SOCIO-CULTURAL ENVIROMENT
• A society is shaped by beliefs, norms and
values. People in a society consciously
and unconsciously interact with:
 Themselves
 Others
 Organization
 Society
 Nature

15. TECHNOLOGICAL FACTORS
– The rate of
change of
technology has
greatly affected
the rate of
growth of
economy.
– New technology
is creating deep
rooted affects
which could be
observed in
long run.
– The
improvement
techniques
involved in on
line banking.

16. TERRORISM
– It truly destroys the ongoing of
an organization, and hence
makes it difficult to achieve the
desired objectives or goals of
the company.
– In Pakistan, the economy of
the country collapsed because
of the terrorist activities in the
past few years, especially in
the most affected areas like of
Khyber PakhtunKhuwa (KPK)
and in the present days,
KARACHI
– Due to terrorism not only HBL
or Banks only but all the
business sector of the country
is affected

17. PRODUCTS
• Following are some of the products and services that are provided by the HBL
Products:
• HBL Muhafiz Rupee Travelers’ Cheque
• HBL Auto Finance
• HBL Flexi Loans for salaried personnel
• HBL Lifestyles’ Financing Scheme
• HBL i-Card
• HBL House Financing Loans
• HBL Fast Transfer
• Haryali Agricultural Loans
• HBL E-Bank
• Money club account
• Id account

18. SERVICES
• Retail Banking
• Commercial
Banking
• Corporate
Banking
• International
Operations

19. RETAIL BANKING
RETAIL BANKING
– Core strenght of
HBL with 1425
branches
– Provides diversified
low cost deposit
base
– Formed basis for
corporate and
investment banking
and treasury
activities

20. COMMERCIAL BANKING
COMMERCIAL BANKING
• On November 1,
2000 Commercial
Banking came into
being providing two-
fold objective of
setting up
Commercial banking:
– First to stop the erosion
of market share in the
middle market.
– Second, to regain the lost
market share

21. CORPORATE BANKING
• CORPORATE BANKING
– This group serves large institutional customers who require
sophisticated products in an environment of intense
competition
– This Group is now recognized as a market leader
– & participates in most large structured finance deals
• INTERNATIONAL OPERATIONS
First international branch was opened in 1951 in Colombo-Sri Lanka:
– The Bank’s branches in financial centers continue to provide
efficient trade settlement .
– Also provide services to the entire network and business with
other banks

22. Assets
NOTE 2010
2009
(IN RUPEES)
• Cash and balances with treasury banks 5 81,640,246 79,839,836
• Balances with other banks 6 37,413,185 40,366,687
• Lending’s to financial institutions 7 30,339,344 5,352,873
• Investments 8 254,909,116 216,467,523
• Advances 9 459,750,012 454,662,499
Operating fixed assets 10 16,155,290 16,766,668
• Deferred tax asset 11 9,572,203 9,205,944
• Other assets 12 34,920,007 41,262,754
• TOTAL 924,699,403 863,924,793

23. Shares
Total number of share holders= 113,506.
Total Shares=1,001,880,000 (More than 1 Billion).
Each Share of HBL= Rs.5.
Cost of per share in market= Rs.120.
It has a domestic market share of over (40%). It
also continues to dominate the commercial
banking sector with a major market share in
inward forward remittances (55%) and loans to
small industries, traders and farmers.

24. SPONSORS OF HBL
The following two are the main sponsors of HBL:
• Agha Khan Group (The biggest sponsor of HBL
(Habib Bank Limited) with the most share i-e
51%).
• Government and General Public (with 49%).

25. COMPETITORS OF HBL
• NBA (National Bank Limited).
• UBL (United Bank Limited).
• MCB (Muslim Commercial Bank).
• Allied Bank.
• Standard Chartered.
• Bank Alfalah.

27. •Goodwill & historical background. •Union and Conflicts
•Professional and well trained staff. •Checking System
•Largest customer base. •Weak marketing policies.
•Largest commercial bank. •Nepotism & Favorism.
•1501 branches World wide •Infected portfolio still exists as bad
•20% share in financial market. debts.
•Large Balance sheet size. •Centralized management in
•Decentralized authority. particular areas.
Strength Weaknesses
Threats Opportunities
•Adverse & unstable government • For growth and expansion in
policies. cash management.
•Political instability. •Faster market growth
•Advance technology. •Restoration of investors’ confidence
•Competition from other banks. •Large deposit base and funds flow

28. ACHIEVEMENTS IN 2008
• Deposit growth for the year has been 12.5%
• Net asset growth of the bank has been 19%
over 2007.
• HBL’s consolidated Pre-tax profit for 2008 is
Rs. 22.03 billion.
• Profit after tax is Rs. 15.61 billion, which
translates into an earning per share of Rs.
20.47.

29. ACHIEVEMENTS IN 2009
• Deposit growth for the year has been 14.3%.
• Net asset growth of the bank has been 27.2%
over 2008.
• HBL’s consolidated Pre-tax profit for 2009 is Rs.
21.4 billion.
• The profit after tax is Rs. 13.4 billion, which
translates into an earning per share of Rs. 14.70.
• The Bank announced a final cash dividend of Rs.
6.00 per share (60%) and bonus shares of 10%.

30. ACHIEVEMENTS IN 2010
• Deposit growth has been Rs. 16.8 billion, total
assets have grown by Rs. 11.5 billion.
• Net assets by Rs. 1.9 billion.
• HBL's consolidated Pre-tax profit for 2010 is
Rs. 12.8 billion.
• The profit after tax is Rs. 7.9 billion, which
translates into an earning per share of Rs. 7.70
showing increase of 26% over June 2009.

31. ACHIEVEMENTS IN 2011
 Deposit has registered remarkable growth of 25%.
 Net asset growth of the bank has been 14% over 2010.
 HBL’s consolidated Pre-tax profit for 2011 is Rs.34
billion.
 Profit after tax is Rs. 22 billion, which translates into an
earning per share of Rs. 20.13. The Bank announced a
final cash dividend of Rs. 4 per share (40%) and 1
bonus shares for every 10 shares held (10%), which is
in addition to the interim dividend of Rs. 3 per share.

32. Thanks for the Presentation