Karachi – 15 October 2021:
HBL today declared a consolidated profit before tax of Rs 46.4 billion for 9M’21, a growth of 8% over the same period last year. Profit after tax increased to Rs 27.0 billion, with earnings per share increasing to Rs 18.21 in 9M’21 compared to Rs 17.17 in 9M’20. The Bank declared an Interim Cash Dividend for the third quarter ended September 30, 2021 at Rs 1.75/- per share i.e. 17.5%. This is in addition to the Interim Cash Dividend already paid at Rs 3.5/- per share i.e. 35%.
HBL has the industry’s largest balance sheet which further increased to Rs 4.1 trillion, in the nine months of 2021. This was achieved by continued strong growth in deposits, which increased by more than Rs 330 billion (12%) during 2021 to Rs 3.2 trillion; the Bank’s industry leading current account book exceeded Rs 1.1 trillion. With HBL ready and willing to lend in support of economic growth, domestic advances continued to increase, rising by 9.0% over Dec’20 and surpassing Rs 1.1 trillion. Our flagship Consumer assets have continued their strong, well-managed growth and crossed Rs 95 billion in the current quarter. With international franchises on a growth trajectory, HBL’s total advances increased by 12% over Dec’20, to Rs 1.4 trillion.
HBL registered total revenue of Rs 123 billion as the strong growth in fees and balance sheet volumes were able to offset the impact of industry-wide margin compression. The Bank recorded a net interest income of Rs 97.2 billion, driven by a Rs 400 billion growth in average balance sheet volumes. Fee income showed an impressive growth of 34% to Rs 17.9 billion, driven by stellar performance from the Cards and Consumer businesses and a strong growth in domestic trade volumes which surpassed the $10 billion mark for the first time.
Total expenses remained flat year-on-year despite the Bank’s continued investment in technology and digital initiatives and in contributing to Pakistan’s economic growth and development. The Bank’s cost to income ratio (excluding capital gains) thus reduced from 60.9% in 9M’20 to 57.7% in in 9M’21.
Commenting on the Bank’s performance, Muhammad Aurangzeb, President & CEO – HBL said, “HBL maintained its robust performance across all business fronts and continued its strong business momentum in Q3 2021. The period saw significant gains, owing to the Bank’s strong core banking performance, transformative digitalization efforts, strategic partnerships and groundbreaking interventions on financial inclusion and development finance initiatives.”
The Bank remains a market leader in personal loans, merchant acquiring, credit cards and debit cards. The throughput of both debit and credit cards was over Rs 129 billion, up by 63% over the same period last year. The Bank’s merchant acquiring business has the largest Point of Sale network of 35,000 terminals in the country and recorded a growth of 50% by managing a throughput of Rs 125 billion which is the highest in the country.
The Bank’s SME and Rural Banking businesses have an Advances portfolio of Rs 58 billion and Rs 38 billion respectively which is a testament of the Bank’s commitment to serve the real sectors of the economy. SME trade volume recorded a YoY growth of 23%. Supporting the country’s agenda to promote exports, the export trade volume recorded a YOY growth of 28%.
HBL crossed Rs 1 billion for disbursements in the Dairy financing business. The Bank also became the first bank in the country to lend against an Electronic Warehouse Receipt, thereby enhancing financial inclusion of the supply chain ecosystem.
HBL serves 6 million clients globally to make their payments through the Bank’s cutting-edge digital platforms. HBL Mobile and Internet Banking has maintained its leadership position, with a record milestone of more than 7 million transactions and throughput of Rs 100 billion in a single month.
Konnect by HBL, the Bank’s branchless banking platform, continued its momentum, doubling transactions to 49 million and volumes reaching Rs 707 billion in Q3 2021. A focused strategy led to a 41% increase in in-app registrations and 32% increase in overall account portfolio. Konnect has strengthened its digital product offering with the launch of ‘Gulak’ – a first of its kind digital saving product.
Financial inclusion is at the heart of HBL’s business philosophy which manifested itself with the continuation of the Ehsaas Kafalat Program and the Punjab Agri Kissan Card mandate. Konnect by HBL has impacted 1.4 million farmers, and digitally empowered 460,000 of them through the Kissan Cards.
HBL has been pursuing its client centricity agenda aggressively across multiple client segments.
The Roshan Digital Account (RDA) portfolio maintained its growth momentum and has been ranked # 1 in accounts opened across the industry with a market share of 20%. HBL has brought in close to $330 million through the proposition.
HBL Prestige, a banking proposition for High-Net-Worth Individuals, expanded its footprint to 8 touch points in Karachi, Lahore and Islamabad. HBL Prestige has delivered positive results with 25% growth in the portfolio through an incremental deposit of Rs 4.2 billion within 6 months of launch.
HBL Islamic Banking is operating over 250 dedicated branches, the 4th largest Islamic banking network in the country. Islamic Banking continues to focus on Commercial and SME businesses by expanding trade hubs to provide ease of service to these segments.
The HBL Development Finance team through its pilot programs have delivered enhanced yields for farmers. The Bank scaled up its Development Finance 2020 proof-of-concept interventions by over 30 times through mid-scale pilots led by field-based, full-time agronomists who use handheld tablets to digitally on-board farmers onto HBL Pay. Pilot projects of over 3,200 acres (maize crop) were completed and over 7,200 acres (rice crop) will be completed with the harvest in October, followed by the wheat and potatoes pilots in Q3 over 7,000 acres.
HBL Corporate, Commercial & Investment Banking Group closed a first of its kind Syndicated Transaction of Rs 7.5 billion to develop a real estate project. Additionally, the Bank also closed the largest rights issue in the domestic corporate sector of Rs 11.6 billion. The Bank continues to pursue infrastructure projects under the Public Private Partnership (PPP) mode.
HBL’s presence in China has also played a significant role in enhancing trade flows as over 43% of CNY trade has been routed through HBL China, delivering on the strategy of developing trade corridors utilizing the Bank’s network presence.
Q3 2021 saw the Bank celebrate the 50th Anniversary of the HBL Plaza building, an iconic landmark of the country.
HBL in collaboration with the Government of Sindh set up a COVID-19 Drive-through Vaccination Facility in Karachi. More than 28,000 citizens have so far been vaccinated. The Bank remains committed to the Government of Pakistan’s vision of Sustainable Development; during Q3 2021, as its contribution to the 10 billion Tree Plantation initiative, HBL commenced a plantation drive with the Federal Minister for Climate Change and members of the diplomatic community.
During Q3 2021, HBL won multiple awards from international and local publications/platforms. These include, among others, the awards for contribution to the Roshan Digital Account initiative, Equity Deal of the Year, Best Acquisition Financing, Best Corporate Sukuk and the Environment Excellence Award. Moreover, the Bank also won the Best Mobile Bank Application Award and was also recognized as the # 1 Primary Dealer in Government Securities by the State Bank of Pakistan (SBP) for a second year in a row.
Jamal Nasir, Chief Human Resources Officer – HBL (sitting left) and Anwar Fareid, Chief Innovation and Commercialization Officer – NUST (sitting right) signed the agreement. Senior members from both the organizations were also present on the occasion
Karachi – 7 October 2021:
HBL and National University of Science and Technology (NUST) entered into a strategic partnership to identify and bridge the gaps between academia and industry. The partnership is in line with the Bank’s commitment to strengthen its connection with its academic partners present in Pakistan and internationally.
The agreement was signed by Jamal Nasir, Chief Human Resources Officer – HBL and Anwar Fareid, Chief Innovation and Commercialization Officer – NUST. Senior members from both the organizations were also present on the occasion.
Through this alliance, HBL will work closely with NUST to get insights on the cutting-edge technologies in addition to offering students the opportunity to experience real life industry challenges through structured internships, projects, workshops and regular interaction with HBL professionals.
The Bank will also mentor NUST students in their entrepreneurship competitions and help in initiating new entrepreneurial ventures focused on diversity and inclusion.
Commenting on the occasion, Jamal Nasir, Chief Human Resources Officer – HBL said, “HBL is committed to working with the academia to keep abreast with the latest research methodologies. This collaboration will enable the Bank to make use of various interventions and work with students from NUST, providing them with innumerable learning opportunities as well as foster their professional development and growth.”
Muhammad Aurangzeb, President & CEO – HBL along with valued clients and senior leadership of the Bank at the inauguration of HBL Prestige Lounge located in Gulberg, Lahore.
Lahore, September 29, 2021
HBL inaugurated its new Prestige Lounge located in Gulberg, Lahore. This is the third HBL Prestige Lounge in the city and the eighth across the country with future plans to expand the Prestige footprint. The inauguration was led by Muhammad Aurangzeb, President & CEO – HBL. Valued clients and senior leadership of the Bank was also present on the occasion.
HBL Prestige provides a world-class banking experience to high-net-worth individuals (HNWIs). This exclusive proposition offers tailored solutions through dedicated digital & physical channels and portfolio managers who provide personalized banking services to its clients. The state-of-the-art Prestige Lounges are located strategically in high visibility areas of key cities.
Commenting on the occasion, Muhammad Aurangzeb, President & CEO – HBL said, “HBL is committed to providing a wide array of financial services to its extensive clientele. HBL Prestige is exclusively designed to meet the financial and lifestyle needs of the Bank’s high-net-worth clients, providing them with par excellence services. HBL Prestige promises to deliver an incomparable value proposition with a number of industry firsts as it remains true to its motto of ‘With you, in what you value’.”
From Left to Right (sitting): Farid Alam, CEO - AKD Securities, Aamir Irshad, Head - Corporate, Commercial & Investment Banking - HBL, Fayyaz Ahmad Jarral, CFO - FF Steel, Saad Ur Rahman Khan, Group Head - Corporate, Investment Banking and International Business - Bank Alfalah and Atif M. Khan, CEO - Alfalah CLSA.
From Left to Right (standing): Aqeel Karim Dhedhi, Chairman - AKD Securities, Muhammad Aurangzeb, President & CEO - HBL, Zarak K. Khattak, CEO - FF Steel, Nauman Wazir, Chairman - FF Steel, Atif Bajwa, President & CEO - Bank Alfalah and Ali Ansari, Chairman - Alfalah CLSA.
Karachi, September 27, 2021
Frontier Foundry Steel (FF Steel), one of Pakistan’s leading and fastest growing steel manufacturers and Financial Advisory Consortium held a signing ceremony for the award of mandate for the upcoming listing of FF Steel on Pakistan Stock Exchange (PSX).
A Financial Advisory Consortium (FAC), comprising of HBL, Bank Alfalah Limited, AKD Securities Limited, and Alfalah CLSA Securities Private Limited, has been engaged to advise the Company for listing at the local bourse.
Nauman Wazir, Chairman - FF Steel, Zarak K. Khattak, CEO - FF Steel, Muhammad Aurangzeb, President & CEO – HBL, Atif Bajwa, President & CEO - Bank Alfalah, Aqeel Karim Dhedhi, Chairman - AKD Securities, Ali Ansari, Chairman – Alfalah CLSA, and other senior team members of the FAC were present at the ceremony. The FAC together holds strong credentials with access to deep-rooted capital market investor base, both domestically and internationally.
Incorporated in 1986, FF Steel produces top quality Grade-60 steel bars having plants in Peshawar and Lahore and ranks amongst the top three rebar manufacturers in Pakistan. The Company also intends to explore different opportunities in the South region. FF Steel, with its focus on achieving efficiency and capturing growth opportunities, has undertaken backward integration at its Lahore plant. The Company has also heavily invested in its IT infrastructure and boasts state of the art ERP system.
Furthermore, FF Steel, due to its superior quality and strong brand value has already started exploring diversification into copper export business and steel bars export avenues regionally due to its favorable positioning (proximity to Central Asian countries), which can potentially unlock significant value for the Company in the future.
Commenting on the occasion, Nauman Wazir, Chairman - FF Steel said, “Over the past 3 decades, FF Steel has built strong foundations through its systems and policies, team and market penetration; I am confident of a prosperous and secure future of the Company and its stakeholders. With the assistance of such a strong and professional FAC of HBL, BAFL, AKD and Alfalah CLSA, FF Steel will, Insha’Allah, be making a historic and one of the largest ever private sector IPOs in Pakistan”.
Karachi, September 23, 2021
HBL, in a first of its kind partnership has enabled the acceptance of Finja Debit Cards on the Bank’s ATM network free of cost. Through this arrangement, the Finja Debit Card holders will have free access to HBL’s extensive network of over 2,100 ATMs, the largest in the country.
As part of expanding access to HBL’s banking technology, this cutting-edge facility will enable Finja Debit Card holders to process self-service transactions such as cash withdrawals and fund transfers without any cost via HBL’s ATM network.
This initiative furthers HBL’s vision of becoming a ‘Technology Company with a Banking License’, as it will facilitate in providing innovative solutions and unmatched open Application Programming Interface (API) banking services through the Bank’s digital assets like Konnect by HBL, Mobile and Internet Banking platforms for new-age companies and clients.
Commenting on the collaboration, Sagheer Mufti, Chief Operating Officer – HBL said, “HBL has taken one more step towards customer convenience by leveraging its digital platforms. The partnership with Finja will extend our business model by providing access to HBL’s vast network.”
Qasif Shahid, CEO & Co-Founder - Finja remarked, “Collaboration between banks and fintechs is imperative to foster the digital ecosystem and platform-based business models. HBL through this partnership is clearly leading the way.”
Karachi, September 22, 2021
HBL is the supporting partner of the Pakistan Pavilion at the Dubai Expo 2020. This initiative is in line with the Bank’s continuous support of Government of Pakistan’s vision to promote trade, commerce, investment and tourism.
The Dubai Expo 2020 will run for six months, starting on 1 October 2021. The event is about celebrating culture, collaboration and innovation. A state-of-the-art facility has been set up for the event hosting 192 country pavilions.
The Pakistan Pavilion has been designed and curated by leading architects, designers, visual artists and researchers. It presents the hidden treasures of Pakistan through an immersive, multi-sensory experience to explore the country’s cultural diversity, craftsmanship, economic potential and the dynamism of its people.
HBL is Pakistan’s leading, largest and oldest bank. The Bank firmly believes in Pakistan’s growth potential and investment opportunities. HBL continues to work towards a sustained economic and social uplift of the country. The Bank is confident that the Dubai Expo 2020 will attract investors to come and explore the untapped business and tourism potential of Pakistan.
Muhammad Asad Khan, Head – Secured Assets Consumer Rural and SME Banking – HBL (sitting on Left) and Abdul Rab, Senior Manager Marketing and Sales – Indus Motor Company (sitting on Right) signing the agreement between the two organizations. Representatives from both the organizations were also present at the occasion.
Karachi, September 15, 2021
HBL signed a Memorandum of Understanding (MoU) with Indus Motor Company Ltd. The MoU was signed by Muhammad Asad Khan, Head – Secured Assets, Consumer, Rural and SME Banking and Abdul Rab, Senior General Manager, Marketing and Sales - Indus Motors.
Through this agreement, HBL will facilitate its customers by providing them with exclusive financing and insurance rates on all Toyota variants. With this initiative, customers can avail preferential rates and priority delivery of their financing facility. The combined expertise of the companies will help save time, reduce hassle, and create a seamless purchase and financing. In addition, 50 authorized Dealerships and 35 TSURE (used certified vehicles) outlets will be utilized to offer leasing facilities.
This alliance will also facilitate Islamic Banking customers and highlight the distribution channel of windows and Islamic Banking branches that are catering to customer needs. Collaboration between conventional and Islamic Auto loans provides customers with various options to choose from.
Aamir Kureshi, Head – Consumer, Rural and SME Banking stated, “The importance of forging such strategic partnerships enables HBL to put the customer first, giving them options to choose between conventional and Islamic auto loans so we can facilitate our customers in every way possible.”
Abdul Rab, Senior General Manager, Marketing and Sales - Indus Motor, commented, “When two established giants, such as Toyota & HBL, in the auto finance industry join hands to form an alliance to provide an attractive offer, it creates an excitement amongst the consumers in the market. This was a long-awaited alliance and we are very excited for the outcome of this alliance.”
Muhammad Aurangzeb, President & CEO - HBL (sitting on the left) and Farrukh Khan, MD & CEO PSX (sitting on the right) signing the agreement on behalf of their organizations.
Karachi, April 22, 2021
A Gong Ceremony was held at Pakistan Stock Exchange (PSX) to welcome HBL on-board as a Market Maker for debt securities on PSX. An agreement was signed between PSX and HBL today at PSX Trading Hall whereby HBL becomes Market Maker for debt instruments listed on PSX. The agreement was signed between Mr. Farrukh H. Khan, MD & CEO, Pakistan Stock Exchange, and Mr. Muhammad Aurangzeb, President & CEO- HBL. Also present at the ceremony were the Board of Directors of PSX and senior management of both the organizations.
On this occasion, Mr. Farrukh Khan, the MD & CEO of PSX, said, “This is a very important step in developing collaboration between the banking sector and capital markets. Development of debt markets is an important strategic objective of PSX and critical for the economic growth of Pakistan. Hence, it is a very positive development that the largest bank of Pakistan is coming onboard as designated Market Maker for debt securities listed on PSX. Habib Bank, which was also the first company to be listed on the Stock Exchange, is now going to act as market maker for corporate and government debt securities listed on PSX”. He further stated, “We are confident that Habib Bank as market maker will add to the depth and development of the debt capital market of Pakistan. I congratulate and welcome HBL in their new role as Market Maker”.
Mr. Muhammad Aurangzeb, President & CEO - HBL, added, “Today’s signing ceremony marks the commencement of a market-making relationship between HBL and the Pakistan Stock Exchange (PSX). This is a historic moment, and we are grateful for PSX’ continued trust in the Bank. The arrangement allows investors to buy and sell debt securities with HBL willing to act as a buyer and/or seller. This will not only increase the attraction for debt instruments as an investable asset and add greater liquidity to the Exchange but will also pave the way to enhance the outreach of the debt market. We look forward to building a strong relationship with the Pakistan Stock Exchange and continue to play our role in developing the economy of the country.”
Market Makers perform the crucial role of providing liquidity and depth to the market by facilitating investors to buy & sell securities through continuously quoting two-way prices, i.e., bid and offer prices.
Karachi, September 3rd, 2021
marks a special occasion in the history of HBL, Pakistan’s largest Bank in the private sector. The Bank celebrates the 50th anniversary of the HBL Plaza building today. The HBL Plaza building commenced its operations on 4th September 1971. This commanding 335 feet skyscraper stands tall on I.I. Chundrigar Road, the heart of Pakistan’s financial district, and houses over 1,700 employees.
Recognized as one of the most prominent buildings of Pakistan, the building’s structure with its distinct shape and engineering firsts in Pakistan, remains a symbol of Karachi’s skyline and continues to be one of the most prominent landmarks of the country. Upon its commencement, it was the tallest bank building in Asia and for decades it remained the tallest building in the country.
Few structures in the country are as embedded in the nation’s psyche as HBL Plaza is. Many would remember the building being used for the sighting of the Ramazan and Eid moons. 50 years later, HBL Plaza continues to be an important landmark of Karachi.
Today, HBL Plaza serves as the nerve-centre of HBL’s operations, technology and the digital transformation that the Bank has embarked upon. The building is the backbone of the products, services and controls that HBL provides to its clients.
These past 50 years lifespan of the HBL Plaza building has seen a significant growth in the financial well-being of both the country and the millions of HBL clients. The building has witnessed HBL’s remarkable strides in the financial industry. For perspective, around that period, the Bank’s profit stood at approximately Rs 100 million; today, it has crossed Rs 30 billion. In these intervening years, the Bank’s advances have grown from Rs 4 billion to Rs 1.2 trillion, while its total deposits have risen from Rs 6.8 billion to Rs 3 trillion.
Commenting on the occasion, Muhammad Aurangzeb, President & CEO – HBL said, “HBL’s financial journey wouldn’t have been possible without our clients, stakeholders and employees who have been steadfast in their loyalty to the Bank. Their support has enabled HBL to become one of the leading brands of Pakistan. As HBL looks ahead to its future, to serve the clients through its physical and digital channels, I would like to take this opportunity to express our deep appreciation and gratitude to all our stakeholders, as the Bank continues to serve them in the decades ahead, Inshallah.”
HBL became the first Pakistani bank to open a branch and serve clients in Beijing, China’s capital city.
Karachi, 22 March 2021
The inauguration ceremony for HBL Beijing was attended by clients, regulators and senior executives of the Bank from across HBL’s international network. From Pakistan, Mr. Jameel Ahmad, Deputy Governor – State Bank of Pakistan, Mr. Sultan Ali Allana, Chairman - HBL, Mr. Muhammad Aurangzeb, President & CEO – HBL, along with senior executives and HBL’s customers, virtually joined the ceremony. HBL Beijing offers a full range of products & services for the Bank’s esteemed clients.
HBL remains grateful to the Governments of Pakistan and China and the regulators for the trust and confidence they have reposed on the Bank, through the opening of the branch.
HBL has created history by being the first and only bank from Pakistan to have a branch in Beijing and one of the three banks from South Asia and MENA region to offer end-to-end RMB intermediation in China. Upon commencement of business, HBL Beijing has become HBL’s second branch and its managing branch in China; both branches in Beijing and Urumqi are equipped with foreign exchange and RMB license to better facilitate customers’ requirements in multiple currencies.
HBL’s presence in China will allow the bank to interact with State-Owned Enterprises (SOEs) and leading financial institutions involved in CPEC and across Belt and Road Initiative (BRI) corridors. China is a very important market for HBL not only in terms of the business in China and CPEC, but also for Chinese companies working on projects in countries across the HBL network.
Chairman HBL, Sultan Ali Allana said, “HBL’s journey in China began in 2005 when we established our Representative Office in Beijing. This was followed by the establishment of branch operations in Urumqi in 2017 and today we mark the commencement of our branch operations in Beijing. It is an extremely proud moment for us as we enhance our China franchise, and we look forward to playing a leading role in facilitating regional trade and serving our valued customers throughout HBL’s international network.”
Commenting on the branch opening, Muhammad Aurangzeb, President & CEO, HBL said: “China is the second home market for HBL and we will grow our business in the country. China remains the lynchpin of HBL’s international strategy. We are grateful to the regulators for having granted us the branch license. They are very supportive of developing market-based capabilities and encouraging financial institutions like HBL to provide clients best-in-class product and services. HBL is the largest executor of CPEC related financing in Pakistan, and the Bank’s presence in China has put us in a unique position to connect our clients across the HBL network directly with the businesses in China.”