Karachi, Pakistan – 06 June 2022

HBL, the largest commercial bank in Pakistan, launched its first Impact and Sustainability Report for 2021. The report outlines HBL’s institutional interventions, to serve the needs of the communities, people and the planet. Highlights of the Report

• HBL approved the “No new coal” policy in 2020
• The Bank aims to achieve net-zero carbon emissions by 2030.
• Chairman HBL has announced to increase HBL’s philanthropic funding to 1.5% of Bank’s profit after tax from 2023
• HBL Foundation granted over Rs. 2.7 billion to healthcare, education, and community development programs in a decade, impacting more than 9 million lives
• HBL powered Ehsaas Kafalat Program disbursed Rs. 175 billion to more than 4.3 million underserved women across Pakistan
• Pakistan’s largest bank funded Rs. 240 million in support of communities, employees, and their families during Covid-19 pandemic.

The Bank is committed to sustainable development and promoting high levels of Environmental, Social, and Governance (ESG) practices in the banking industry. HBL has put in place a set of practices that help it to take better and more informed decisions about measuring performance and continually improving the well-being of people and the planet. All the businesses, investments and operations are designed strategically to create a more sustainable, equitable, and financially inclusive world where the present population can meet their needs without borrowing or depleting the resources of future generations.

HBL’s vision is focused on improving people’s quality of life, and thus plays a conscious role in Pakistan’s financial ecosystem. Above all, the Bank understands the impact that it creates, its responsibility to the people of Pakistan and the environment at large.

HBL’s Impact and Sustainability measurement and management enables the Bank to optimize programs and contribute to protecting the country’s resources.

Sultan Ali Allana, Chairman – HBL, commenting on the report said, “I am delighted to share the first Impact and Sustainability Report of HBL. We at HBL believe that it is incumbent upon us, being a part of the Aga Khan Fund for Economic Development (AKFED), to embody the key value of maintaining a balance between what we do and what we share. Our wide outreach across the country enables us to keep a finger on the pulse of society. It is for this very reason that our spending on social and developmental causes is the highest in the industry and certain sectors of the country. We consider ourselves to be a bank with a soul.

For over 10 years, we have been supporting a wide array of projects both in the private and the public sector, with a particular focus on health and education through the HBL Foundation. We hope this report will serve to remind us all that we are who we are because we have been fortunate to receive what has been graced upon us by Allah. It is therefore imperative for us to give what we can for the betterment of those who need it the most.”

The full Impact and Sustainability Report 2021 and further details on HBL’s Sustainability strategy are available on the website: www.HBL.com/sustainability

Faisal N. Lalani, Head International Banking – HBL (sitting 2nd from left) and Mohsin Muzaffer, Country Manager – Payoneer, (Sitting 1st from left) signing the agreement. Senior Members from both the organizations were also present at the occasion.

Karachi, Pakistan – 14 June 2022

HBL, Pakistan’s largest commercial bank has entered into a partnership with Payoneer (NASDAQ: PAYO), the commerce technology company powering the largest payments and growth for the new global economy.

The ceremony marked the official partnership between the two firms; promising to bring ease of international business payments to companies and individuals in Pakistan. As enterprises increasingly engage with businesses and consumers across borders, a need has developed to deliver funds to their global clients efficiently, while enabling a client experience that meets the requirements of international businesses and consumers. This is where HBL and Payoneer step in to facilitate and enable real time international payment transfers for their clients.

The ceremony was attended by Faisal N. Lalani, Head International Banking – HBL accompanied by Abrar Ahmed Mir - Chief Innovation & Financial Inclusion Officer – HBL along with other senior executives from both the organizations.

On this occasion, Mohsin Muzaffer, Country Manager for Payoneer remarked- “It is expected that Pakistan’s IT exports will cross $3.5 billion mark by the end of this year and this is just the start. Despite the potential, receiving international business payments in Pakistan remains a pain point with unfavorable exchange rates and out dated services. With this partnership, we want to ensure that businesses and individuals can receive their business payments via Payoneer within seconds into their HBL account. Whether you a traditional exporter, a seller on Amazon or a company or individual exporting IT services, Payoneer and HBL are here to serve you and make it easy for you.”

Commenting on the occasion Faisal N. Lalani, Head International Banking – HBL, said: “HBL prides itself in empowering the Pakistani clients by increasing choices, and thus accelerating the pace at which our economy digitalizes. Our collaboration with Payoneer will facilitate recipients of foreign payments in Pakistan, enabling greater exports of goods and services and bringing in much needed foreign capital through the banking channel. We believe that this partnership would prove to be a milestone in nurturing the digitalization of Pakistan’s economy, and unplug opportunities for both small businesses and services exporters, in line with the vision of our senior leadership.”

HBL, FrieslandCampina Engro Pakistan Limited (FCEPL), and Sindh Enterprise Development Fund (SEDF) collaborate to provide easily accessible, subsidized financing to dairy farmers in Pakistan with a long-term commitment of five years. The agreement was signed by Ali Khan, Managing Director- FCEPL (sitting 3rd from left), Muhammad Aurangzeb, President & CEO – HBL (sitting 2nd from left), and Mehboob Ul Haq, Managing Director- SEDF (sitting 1st from left). Senior members from both organizations were also present at the occasion.

Karachi, Pakistan – 15 June 2022

FrieslandCampina Engro Pakistan Limited (FCEPL), HBL and Sindh Enterprise Development Fund (SEDF) have collaborated to provide easily accessible, subsidized financing to dairy farmers in Pakistan with a long-term commitment of five years.

Dairy farmers require financial support to upscale their operations, enhance milk yield and improve herd size. Committed to Nourishing Pakistan with better nutrition and better living for farmers, FCEPL aims to provide a long-term sustainable financing solution for the dairy farmers in partnership with HBL and SEDF. This one-of-a-kind partnership will facilitate upscaling operations for sustainable dairy farming and the purchase of exotic animals, benefitting the overall milk supply value chain.

Ali Khan, Managing Director - FCEPL, said: “This is the first time such an initiative is being undertaken for dairy farmers. Our partnership with HBL and SEDF will enable farmers to upscale their operations, enhance milk supply within Pakistan and benefit the economy. Farmers will be able to make independent decisions to grow their operations. The idea behind the tripartite agreement is to work with farmers on herd improvement, mechanization and infrastructure development.”

Muhammad Aurangzeb, President & CEO - HBL stated: “Livestock and dairy alone contributes more than 14% to the national GDP. Pakistani dairy farmers produced more than 60 Billion Liters of milk during 2021-22 making it the fourth largest milk producer globally. Despite these impressive statistics, milk yields and animal productivity are amongst the lowest. This necessitates policy intervention and collaboration. HBL is the leading farmer financing provider in the country and is committed to enhancing financial inclusion in rural Pakistan. The Bank has been actively lending for dairy partnering with farmers for the purchase of quality animals and ensuring funds for feed, vaccine and animal well being. HBL’s dairy value chain partnership with FCEPL will facilitate dairy farmers in improving their farm practices and timely availability of credit. This will increase milk yield resulting in sustained and higher profits for our hardworking dairy farmers.”

Mehboob Ul Haq, Managing Director - SEDF said: “The Sindh Enterprise Development Fund is proud to team up with FCEPL and HBL in this new venture. We hope to provide dairy farmers with solutions to grow their business and strengthen the country’s dairy industry and economy. “

Leveraging the Prime Minister’s Kamyab Jawan Program (PMKJ) the total fund allocation for this tripartite arrangement for FCEPL recommended farmers is PKR 10 Billion. This partnership promises to strengthen the dairy farmer community where farmers between the ages of 21-45 are eligible to apply for a loan between PKR 1million to 10million with faster case processing and turnaround times i.e., within two weeks. The mark-up cost is as low as 4% with further subsidization by SEDF for farmers based in Sindh.

FCEPL has taken various initiatives over time for creating value for its farmer community such as extending advances at zero mark-up, cow subsidy programs, incentivizing hygienic practices, and investing in capability building of farmers with trainings on best practices and robust processes, thus improving the livelihoods of farmers and transforming the dairy sector of Pakistan.

Abrar Ahmed Mir, Chief Innovation & Financial Inclusion Officer – HBL (Standing 7th from left) and Altaf Siddiqui, Director Products – E.Ocean, (standing 2nd from left) along with senior members from both organizations were present at the occasion.

Karachi, 20 June 2022

HBL becomes the first Bank in Pakistan to launch “full feature” banking services on WhatsApp. The facility has been developed in partnership with leading cloud communication service provider E.Ocean.

HBL’s Conversational Banking was made available to its clients through E.Ocean’s WhatsApp Business Platform in 2021 To use the service, HBL clients need to initiate a conversation on HBL’s WhatsApp number (021-111-111-425) from the mobile number registered with the Bank. Now, in addition to the information services already being offered, the “full feature” set of services will enable HBL’s customers to conduct payments / financial transactions as well. These transactions / services include:

• Inter-bank Funds Transfer
• Intra-bank Funds Transfer
• Mobile recharge (Prepaid & Postpaid)
• Utility Bill Payments
• Temporarily block / unblock Debit or Credit Card

Speaking on the occasion, Abrar Ahmed Mir, Chief Innovation and Financial Inclusion Officer - HBL, said, “We are excited to leverage the potential of the WhatsApp Platform to unlock value for our clients. With over 2 billion users, WhatsApp offers an unparalleled opportunity to address immediate basic banking needs. This is why we integrated a host of banking services into a platform which is already embedded in our clients’ everyday lives. Client centricity is fundamental to how HBL does business, and we believe this partnership, and its results reflect our commitment to the same.”

Speaking on the occasion, Altaf Siddiqui, Director of Products, E.Ocean, said “It is a moment of great pride for E.Ocean to facilitate HBL in launching first of its kind full feature banking service for its retail customers over WhatsApp. HBL has become a trend setter by going agile and incorporating financial services into a channel that millions of its customers already use, to deliver truly on the go banking with a focus on convenience, accessibility and security”

HBL in collaboration with the State Bank of Pakistan holds the 2nd Regional Agricultural Coordination Committee Meeting for Balochistan. Senior executives from SBP, HBL, Banking Industry and the Government of Balochistan also attended the session.

Karachi, 03 July 2022

HBL as a designated champion bank for Balochistan hosted the 2nd meeting of the Regional Agricultural Coordination Committee (RACC) in collaboration with the State Bank of Pakistan (SBP). The meeting was held in Quetta on 22 June 2022. Kashif Umar Thanvi, Head Rural Banking – HBL & Co-Chairman RACC, led the meeting and was attended by Noor Ahmed-Director, Agriculture, Credit & Microfinance Department – SBP, Rass Masood, Chief Manager – SBP BSC – Quetta (Acting) and Ikram Ullah Qadri, Senior Joint Director AC&MFD-SBP. Other senior executives from SBP, HBL, all active banks operating in Balochistan, Government officials and farming community also attended the session.

The RACC meeting reviewed progress on last meetings action items and discussed the way forward strategy to address the agricultural outreach challenges in the underserved areas of Balochistan

Kashif Umar Thanvi, Head Rural Banking - HBL highlighted the achievements of forum in bridging the gaps in agricultural credit in Balochistan and emphasized the initiatives of RACC to solve the challenges and streamline bottlenecks through collaborative efforts of all the stakeholders.

He commented, “HBL is committed to serving the underserved farming community of Balochistan. The Bank will support credit delivery, along with capacity building & awareness campaigns under SBP’s vision of financial inclusion in Pakistan.”

The session concluded with the commitment from all stakeholders to work towards expanding the agricultural landscape by empowering the farming community of Balochistan.

The Bank also wins ‘Pakistan’s Best Domestic Bank 2022’ award by Asiamoney

Karachi, 18 July 2022

Euromoney awards HBL the accolade of Best Bank in Pakistan 2022. The Bank has also won the Asiamoney award for Best Domestic Bank in Pakistan 2022.

These two awards are the most prestigious recognition in the banking industry, globally.

HBL is proud to serve its valued clients who have made these wins possible. These wins are a tribute to our millions of clients’ continued trust and confidence in HBL.

The Euromoney citation for HBL acknowledges that “HBL enjoyed its strongest-ever performance in 2021, and, by extension, the strongest performance in Pakistan. Its Rs62 billion ($351.2 million at the time) consolidated pre-tax profit for the year represented 17% year-on-year growth.”

The citation went on to note that HBL’s growth in Pakistan is based on various factors including, “a vibrant year in consumer banking, digital momentum, record volumes in cash management, and a 20% growth in the farmer financing portfolio.”

Highlighting HBL’s effort towards Islamic finance, the citation mentions the Bank’s commitment towards the business as it showed great progress. The citation remarked, “HBL is also the only Pakistani bank among the signatories of the Green Investment Principles, China, and in 2021 extended its existing commitment to stop financing coal to industries that contribute to deforestation.”

Euromoney and Asiamoney are global English-language publications focused on business and finance.

​Jan Muhammad Jamali, Acting Governor, Balochistan (standing 6th from left) and Muhammad Aurangzeb, President & CEO – HBL (standing 5th from left) inaugurated the HBL Prestige Lounge in Quetta. Valued clients, dignitaries and senior leaders of the Bank were also present at the inauguration.

Quetta, 21 July 2022​

HBL inaugurated its new Prestige Lounge located in Quetta. This is the 1st HBL Prestige Lounge in the city, making a total of 32 lounges across 13 cities, with plans to further expand the Prestige footprint. The inauguration of the lounge was done by Jan Muhammad Jamali, Acting Governor, Balochistan and Muhammad Aurangzeb, President & CEO – HBL. The Bank’s valued clients, dignitaries and senior leaders were 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 working with the Provincial Government of Balochistan and SBP for the development of Balochistan.

​As the designated “Champion Bank for Balochistan” by SBP to promote Agriculture in the province, the Bank is playing an active role in improving financial inclusion. This is being done by conducting awareness sessions and the issuance of the Kissan Card to offer subsidy payments by Govt. of Balochistan to the farmer community in the province.

HBL offers a wide array of financial products & services to its clientele. HBL Prestige is exclusively designed and tailored to meet the financial and lifestyle needs of our high-net-worth clients across Pakistan. We are delighted to bring the Prestige proposition to Balochistan and inaugurate our state-of-the-art HBL Prestige Lounge in Quetta. We hope to remain true to HBL Prestige’s motto of ‘With you, in what you value’.”​

Karachi – 28 July 2022​

HBL today declared a consolidated profit after tax (PAT) of Rs 12.1 billion for H1 2022, lower than the Rs 18.0 billion in H1 2021 as a result of the extremely high and retrospective taxes announced in the Federal Budget. Earnings per share for the quarter were Rs 2.32, bringing earnings per share for the half year to Rs 8.10. Along with the results, the Bank declared a dividend of Rs 1.50 per share (15%) for the second quarter ended on June 30, 2022, more in line with the results. The Bank’s profit before tax was Rs 34.6 billion for H1 2022, 11% higher than the profit of Rs 31.2 billion in the same period last year. ​

HBL has become the first bank to achieve a Balance Sheet size of Rs 5.0 trillion, driven by strong deposit mobilization. Total deposits reached Rs 3.8 trillion, a growth of Rs 370 billion over December 2021. Strong mobilization efforts resulted in a 10% growth in domestic deposits, which reached Rs 3.4 trillion with market share growing to 14.32%. In line with its stated intent and commitment, HBL continues to support customers through these difficult times, standing ready and willing to meet clients’ demand for credit. In just the first six months, the Bank’s total advances grew by 10% over December 2021 to Rs 1.7 trillion with growth across all lending businesses. ​

​The Bank’s net interest income grew by 14% over H1 2021 to Rs 73.9 billion as the average balance sheet grew by over Rs 500 billion although spreads declined marginally. Fee income continued on an upward trajectory, increasing by 28% over the first six months of the previous year. While all business segments showed growth in fees, this was predominantly driven from the Bank’s flagship cards business, aided by strong contributions from cash management, branchless banking, home remittances and trade services. The Bank’s total revenue thus increased by 18% over H1 2021 to Rs 97.6 billion.

​Despite high double-digit inflation and HBL’s continued investment in people, technology and infrastructure, administrative expenses remained flat to the previous quarter with the cost / income ratio reduced from 59.6% in Q1 2022 to 55.1% in Q2 2022. Total credit-related provisions of the Bank reduced by 43% over H1 2021 to Rs 2.6 billion which includes incremental general provisions of Rs 1.3 billion. The Bank’s prudent risk management enabled HBL to maintain the Infection ratio at its all-time low level of 5.1% with total coverage at over 100%.

Commenting on the Bank’s H1 2022 performance, Muhammad Aurangzeb, President & CEO – HBL said “For HBL, client centricity is the bedrock of both our business and culture. Our business results are the outcome of delivering on the Bank’s strategic objectives of supporting clients and playing our part in supporting the country’s economy. HBL has made remarkable progress in digitalization, financial inclusion and, as the ‘Champion Bank for Balochistan’, stepped up to play its part for the province on the back of many developmental firsts.“​

HBL’s flagship Consumer Banking business continues to dominate the market across a wide range of metrics. During the first six months of 2022, lending increased to Rs 118 billion; simultaneously HBL became the first bank in Pakistan to have a credit card portfolio of over Rs 20 billion. 1 out of every 3 Rupees spent on credit cards in Pakistan is on the HBL Credit Card. During H1 2022, HBL Prestige branches were inaugurated in Faisalabad, Multan and Karachi, taking the total footprint to 29 lounges in 12 cities.

Lending to the agriculture sector, where the Bank remains dominant, reached a record high of Rs 44 billion. HBL microfinance stepped up its support to those most in need of financing with a 27% growth in lending with total loans crossing Rs 72 billion. HBL and HBL Microfinance Bank have both been declared by SBP as “Top Ranked Agri Lending Bank” amongst large banks and microfinance banks respectively.

The Bank continues to lead in innovation. In yet another “industry-first”, HBL has enabled customers to perform basic financial transactions through the Conversational Banking channel on WhatsApp. HBL Mobile and Internet Banking users reached nearly 3 million; in June 2022, over 10 million financial transactions were processed through Mobile/Internet and so far this year, we have processed transactions totaling over Rs 1 trillion, the same throughput as for the whole of last year. HBL maintained its leading position in cash management, with throughput rising by 66% to nearly Rs. 6 trillion in H1 2022. Digital payments through HBL Pay Business Banking grew to around Rs 3.2 trillion with 19 million transactions successfully processed. HBL Konnect remains the preferred delivery partner for the GoP, helping the Government disburse fuel subsidies to more than 6 million beneficiaries.

HBL maintains its leadership in the ESG area, in particular on environmental issues. During H1 2022, HBL disbursed Rs 7.8 billion under the SBP’s Renewable Energy scheme. HBL has contributed to several reforestation projects in Pakistan; recently, our staff volunteered in a drive for mangrove reforestation to protect Karachi’s endangered coastline. During this quarter, HBL issued its first Sustainability Report, highlighting the full scale of its activities over the last several years. In 2022, the Bank also increased its contribution to the HBL Foundation by 50%, from 1% of PAT to 1.5% of PAT, enabling us to further strengthen support to deserving causes.

The Bank’s diversity ratio continues to improve with 20.7% of our employees being women. HBL won eight awards in the 2021 Global Diversity and Inclusion Benchmark awards in the categories of Best Practice in Pakistan and Most Progressive in Pakistan. During H1 2022, HBL won the 2022 Euromoney Award for “Best Bank in Pakistan” and the 2021 Asiamoney Award for “Best Domestic Bank.” HBL also won awards for Best Green Bond and Best Structured Finance Deal 2021 from The Asset Triple A Sustainable Capital Markets Country & Regional Awards 2021. Apart from the recognition, these are gratifying as they represent independent validation of our efforts from internationally recognized publications.

Lahore, Pakistan – 15 August 2022​

HBL inaugurated its Islamic Banking Branch in Bahria Town, Lahore. The launch is part of HBL’s continuous efforts to expand its branch network to better serve Shariah-compliant products and services to its clients.

HBL Islamic offers services to clients in 300 cities across the country, through a network of 273 dedicated branches and 572 windows, with plans to expand its reach in more cities across the country by adding 33 new branches by December 2022.

​HBL Islamic Banking also offers a complete product suite for its SME and Commercial Banking clients, ranging from short-term working capital financing to long-term project financing. It has also established 8 trade centers in key markets across the country to provide Shariah-compliant solutions for the domestic and international trade finance requirements of clients.

Shahzad Babar, Head Retail Banking Islamic- HBL, commenting on the Bahira Town Lahore Branch inauguration said, “HBL Islamic Banking continues to expand its footprint across the country to better serve the Islamic Banking needs of our clients. The demand for Shariah-compliant banking solutions and services has seen a sharp increase, and this expansion highlights HBL Islamic Banking’s commitment to support our clients’ strategic needs. With tailor-made financial solutions, we will continue to maintain our lead as the eminent Islamic Banking player in the industry.”

Mufti Muhammad Zubair Usmani, Chairman Shariah Board – HBL, commenting on the Bahira Town Lahore Branch inauguration said, “I would like to congratulate the entire HBL Islamic Banking team on the inauguration of the branch. The Bank’s fast-paced expansion plan for its Islamic Banking network is quite Impressive. HBL’s journey toward Islamic Banking began several years ago and it is commendable to see how the bank is working to scale on this front.”