17 February 2021
HBL today declared a consolidated profit after tax of Rs. 30.9 billion for the year ended December 31, 2020, double that for the same period last year. The Bank’s earnings per share increased to Rs. 21.06 compared to Rs. 10.45 for 2019. Profit before tax recorded a growth of 84% over 2019 to Rs. 53.0 billion. Along with the results, the Board declared a final Cash Dividend for the year ended December 31, 2020 at Rs. 3/- per share i.e. 30%. This is in addition to the Interim Dividend already paid at Rs. 1.25/- per share i.e. 12.5%.
HBL grew its domestic deposits by a phenomenal Rs. 400 billion, with market share increasing to over 14%. An increase of over Rs. 100 billion in current and more than over Rs. 200 billion in savings accounts resulted in strong CA and CASA ratios of 35.0% and 86.6% respectively; HBL’s total deposits increased to Rs. 2.8 trillion. Domestic advances crossed a landmark of Rs. 1.0 trillion and the Consumer lending portfolio, in particular, showed an excellent performance, crossing Rs. 75 billion.
Helped by the strong balance sheet growth, HBL’s total revenue set a new record, crossing Rs. 160 billion. The Bank improved its cost to income ratio from 73.5% in 2019 to 58.5% in 2020 and the infection ratio improved to an all-time low of 6.3%. HBL’s CAR, which now stands at 17.2%, is well above regulatory requirements.
Commenting on the Bank’s performance, Muhammad Aurangzeb, President & CEO, HBL said, “The Bank had a stellar year in which all key indicators remained on an upward trajectory, and the domestic franchise delivered record profits. The international business has also shown signs of a turnaround in Q4’20 with revenues trending upward. Moreover, HBL is actively working on financial inclusion initiatives through significant investments in technology and digitalization efforts. During 2020, HBL remained conscious of its responsibility to support its customers and the broader economy, especially during these testing times.”
The Bank’s journey towards becoming a “Technology Company with a Banking License,” has accelerated as it witnessed an increase in its digital transaction volume. There was a 93% increase in HBL Mobile and Internet Banking transactions volume and a 157% uptake in Konnect by HBL, the Bank’s branchless banking platform. Through ‘HBL Pay’ all onboarding and payment solutions for businesses were consolidated under a single platform. Collectively, HBL managed a throughput of Rs. 7 trillion in 2020, a growth of over 34% vs 2019.
Financial inclusion is at the core of HBL’s business philosophy, to work towards reducing poverty and achieve inclusive economic growth. HBL joined forces with Government of Pakistan to enable the delivery of the Ehsaas Emergency Cash Program disbursing approximately Rs. 175 billion to an estimated 12 million families over a period of two months. HBL and Ehsaas also partnered on the Kafaalat program which serves more than three million deserving women across the country.
HBL retained its #1 position in Consumer Finance. The Bank came first in Credit Cards, Debit Cards, Merchant Acquiring, Personal Loans and second in Auto Loans. Personal loans at Rs. 37 billion, delivered a growth of 12% over last year. The primary growth driver for 2020 was auto finance, recording an increase of Rs. 9 billion, 53% over 2019. HBL is the only bank in Pakistan enabling its customers to avail a credit card and personal loan through its app; Rs. 3.2 billion worth of loans were disbursed in 2020 using the Bank’s digital channels.
The Bank provided digital onboarding and servicing through the eBanc Roshan Digital Account (RDA), a special investment account created for expatriates. Since its launch, 12,000 Pakistanis from 104 countries have set up RDA accounts and remitted more than USD 44 million in a short span of three months.
The Bank’s Islamic Banking arm, over 900 branches/windows nationwide, provided Shariah compliant fixed home finance rentals.
HBL maintained its position as the lead private sector financier of the agriculture sector, with a 30% market share. The Bank has introduced technology-based farming techniques for farmers which aim to raise their standard of living and become better integrated with the value chain which provides food security to the country. The Bank’s Development Finance Group (DFG) is using innovative technology to augment Pakistan’s Agriculture value chain bringing together the ‘Farm-to-Fork’ ecosystem.
HBL maintained a strong corporate and investment banking presence in Pakistan. The Bank worked on energy, infrastructure and power projects to promote capital market development, deepen secondary markets and provide advisory services.
The Bank’s Operations launched HBL Fusion, a digital online portal for trade and foreign remittance transactions approval. The portal facilitates customers who require State Bank of Pakistan’s (SBP) approvals for foreign exchange.
HBL led the market in adopting Environmental, Social & Governance (ESG) principles. HBL is the first bank in Pakistan to become a member of the Green Investment Principles for the Belt and Road Initiative.
As the largest executor of CPEC related financing in Pakistan, China remained the lynchpin of HBL’s international strategy. In December 2019, HBL became the first Pakistani bank to be awarded the muchcoveted branch license to offer financial services to clients in Beijing, which is expected to be launched in Q1 2021. The Beijing branch will allow HBL to interact with regulators, major state-owned enterprises (SOEs) and leading financial institutions involved in CPEC and other Belt and Road Initiative (BRI) corridors.
In 2020, HBL won, The Euromoney Award for “Best Bank in Pakistan” & “Best Bank Transformation in Asia.” At the World Finance Digital Banking Awards HBL won, “Best Mobile Banking App”, “Best Digital Consumer Bank” and “Best Use of Social Media.” HBL won the Global Islamic Finance Award for “Best Islamic Bank for Trade Finance.” HBL won “Best Customer Franchise”, “Best Bank for SME” and “Best Investment Banking” by the Pakistan Banking Awards.
Muhammad Aurangzeb, President & CEO - HBL (standing second from right), Muhammad Afaq Khan, Head Islamic Banking – HBL (standing first from left), along with customers and other representatives of the Bank at the inauguration of the HBL Islamic Banking Commercial Centre, Trade Hub and Branch, on I.I Chundrigar Road, Karachi
Karachi, 16 February 2021:
HBL Islamic Banking inaugurated a dedicated HBL Islamic Commercial Centre, Trade Hub and Branch on I.I. Chundrigar Road, Karachi, the heart of the country’s financial hub. HBL is Pakistan’s largest commercial bank with over 1700 branches, and its Islamic Banking arm that provide Shariah compliant financial services from over 911 branches/windows nationwide.
Liaqat Ali Khan, a branch teller who has been part of the HBL family for more than 41 years cut the inauguration ribbon. Present at the ceremony were Muhammad Aurangzeb, President & CEO - HBL and Muhammad Afaq Khan, Head – Islamic Banking, along with customers and other senior leaders from the Bank.
Commenting on the branch opening, Muhammad Aurangzeb, President & CEO, HBL said, “HBL Islamic Banking continues to expand its footprint across the country. The demand for Shariah compliant banking solutions and services has seen a sharp increase, and this expansion allows us to serve our clients and customers with tailor made financial solutions while maintaining our lead as the eminent Islamic Banking player in the industry.”
Remarking on the multifunctional branch opening, Afaq Khan, Head of Islamic Banking, HBL said, “As Pakistan’s largest bank it is our responsibility to extend the outreach of Shariah compliant Islamic Banking products and services to our customers. We have grown the Islamic Banking branch network exponentially in the last six months, and will add another 200 dedicated Islamic branches and expand our coverage to over 300 cities this year.”
Jawad Zahoor Khan, CEO- PSDF (sitting on left), Aamir Kureshi, Head Consumer, Rural and SME Banking – HBL (sitting on right) at the signing ceremony along with Muhammad Aurangzeb, President & CEO - HBL (standing third from right) and representatives from both the organisations.
Karachi, 15 February, 2021:
Habib Bank Limited (HBL), Pakistan’s largest commercial bank has entered into a Memorandum of Understanding (MoU) with Punjab Skill Development Fund (PSDF), the largest skills development fund in Pakistan. The MoU was signed by Aamir Kureshi - Head Consumer, Rural & SME Banking, HBL and Jawad Zahoor Khan, CEO, PSDF.
Present at the ceremony were Muhammad Aurangzeb - President & CEO, HBL and other senior executives from both organizations.
In line with the Government of Pakistan’s vision of creating 10 million jobs, the Prime Minister’s Youth Entrepreneurship Scheme has been developed under the banner of “Kamyab Jawan”. The purpose of the scheme is to shape the future and well-being of Pakistani youth by giving them access to skills training so they can find sustainable employment and income-generating opportunities
Commenting on the signing, Aamir Kureshi, Head Consumer, Rural & SME Banking, HBL said, “HBL has always supported the national agenda vis-à-vis Pakistan’s economic growth and social uplift. Through this partnership, HBL will provide loans to capable young men and women under the “Kamyab Jawan” scheme which will enable them to run their businesses and create further employment opportunities within the country.”
Jawad Zahoor, CEO, PSDF stated,” PSDF is the largest skill development fund in Pakistan and has a solid track record of skilling youth and linking them to income generation opportunities.
Though our partnership with HBL, PSDF will ensure that the youth is well trained in the technical and entrepreneurial skills to enhance their ability to secure loans under “Kamyab Jawan” and utilize them effectively to run successful businesses.”
Karachi, 4 January, 2021:
Naymat Collateral Management Company Ltd (NCMCL), Pakistan’s first collateral management company, has joined forces with HBL for the development of Electronic Warehouse Receipt (EWR) ecosystem in the country. Electronic Warehouse Receipt (EWR), the first of its kind in Pakistan, is a digital instrument which gives financial institutions real time information and access to farmers, traders, processors and aggregators who have placed their produce in an accredited warehouse, significantly reducing transaction costs and operational risks.
Through this agreement, HBL and NCMCL will work towards poverty alleviation and enhanced inclusive growth targeted towards the rural population of Pakistan. This partnership will ensure that rural communities get easy access to finance.
Kashif Umar Thanvi, Head - Rural Banking, HBL commented, “HBL is a market leader in farmer finance amongst commercial banks. The Bank has actively partnered with farmers across Pakistan for the timely provision of financial services to achieve the common objective of better crop yields and enhanced farm productivity. HBL is excited to partner with Naymat Collateral Management Company as this newly developed ecosystem will enhance financing to farmers and rural communities.”
Speaking on the occasion, Naveed Qazi – CEO, NCMCL stated, “Through this agreement, price anomalies that exist in the agricultural value chain will be eliminated and will save the small holder farmer from the distress sale of commodities.”