​H.E. Zhang Hao, Acting Consul General – China (standing 1st from right), Sultan Ali Allana, Chairman – HBL, (standing 2nd from right), along with the HBL International team at the “HBL China Story” session held at HBL Tower Karachi.

Pakistan, Karachi – 13 September 2024:

HBL hosts the “HBL China Story” session, bringing together colleagues to discuss the significance of the Bank’s journey in China that started in 2005. HBL is the first and only Bank from Pakistan to have branches in Beijing and one of the three banks from South Asia and MENA region to offer end-to-end RMB intermediation in China.

The event was attended by H.E. Zhang Hao, Acting Consul General of China in Karachi, and Sultan Ali Allana, Chairman – HBL. Wei Cheng, Country Manager China, presented HBL’s journey in China.

With HBL’s growing business in Pakistan and its international footprint, China is the Linchpin and a market that HBL identifies as its second home. The key theme of the session was to explore opportunities for the next chapter of HBL’s growth in China

Speaking on the occasion, Sultan Ali Allana, Chairman – HBL said, “HBL’s journey to China began in 2005 with the establishment of Representative Office in Beijing. Over the years China has become the cornerstone of our strategy growing and facilitating trade in the region and promoting business in RMB. We are immensely proud of the critical role that our China team plays in serving our clients across our network in UAE, Sri Lanka, Maldives, Bangladesh and Bahrain.”

Narrating the HBL China story, Wei Cheng, Country Manager China, said, “HBL’s growth in China is a testament to our strong relationships with local partners and our ability to adapt to the unique needs of this dynamic market. Our continued success will be driven by innovation, collaboration, and a deep understanding of the Chinese market. By leveraging the strength of our group and our understanding of local dynamics, we are positioned to contribute significantly to the diverse needs of our clients across HBL’s network.”

​Aamir Irshad, Acting President & CEO - HBL, received the award from Akif Saeed, Chairman – Securities and Exchange Commission of Pakistan (SECP) at the PICG Awards ceremony held at the Movenpick Hotel in Karachi.

Pakistan, Karachi – 16 September 2024:

HBL has been honored with the ‘Best Board of the Year’ award by the Pakistan Institute of Corporate Governance (PICG), in recognition of its exemplary leadership, outstanding governance, and strategic oversight.

Aamir Irshad, Acting President & CEO - HBL, received the award on behalf of the Board of Directors of HBL at the PICG Awards ceremony held at the Movenpick Hotel in Karachi. Other Senior Officials of the Bank were also present on the occasion.

While announcing the award PICG explained that the ‘Best Board of the Year’ was awarded based on the criteria of not only achieving the highest Board Strategic Performance Index (BSPI) but also having ensured the most efficient evaluation process in cohesion with the management team. The HBL Board also set a record of the most timely completion of the evaluation process after year-end, and held detailed discussions with PICG’s management to discuss the way forward.

This achievement reflects HBL’s unwavering commitment to excellence and responsible corporate practices.

​Muhammad Nassir Salim, President & CEO - HBL (standing 4th from right), received the award from the President of Pakistan Mr. Asif Ali Zardari (standing 5th from right), at the 12th FPCCI Excellence Awards ceremony held in Islamabad.

Pakistan, Karachi – 9 October 2024:

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has awarded HBL the accolade of the ‘Best Conventional Bank of the Year Excellence Award’. The award was presented by the President of Pakistan Mr. Asif Ali Zardari to Muhammad Nassir Salim, President & CEO – HBL, at the 12th FPCCI Excellence Awards ceremony held in Islamabad on 8 October 2024.

HBL was the first commercial bank to be established in Pakistan in 1947 and one of the largest institutions in the country.

Commenting on the achievement, Muhammad Nassir Salim said, “We are deeply humbled to be recognized by FPCCI as the Best Conventional Bank of The Year. HBL is proud to serve its valued clients and play its due role in the economic development of Pakistan. This win is a tribute to the dedicated team of HBL that has earned the continued trust and confidence of HBL’s millions of clients.”

Pakistan, Karachi – 16 October 2024:

HBL today declared a consolidated profit before tax of Rs 85.9 billion for the first nine months of 2024, 3% higher than in the same period last year. All domestic businesses delivered excellent results which, coupled with sustained improvements in the international franchise, drove profit after tax up to Rs 43.3 billion. The Bank’s earnings per share increased to Rs 30.03 in 9M’24. Along with the results, the Bank declared an interim dividend of Rs 4 per share i.e. 40%. This is in addition to the interim Cash Dividend already paid at Rs 8 per share i.e. 80%. HBL is also proud to report that it has contributed Rs 52.9 billion in taxes to the national exchequer.

HBL’s balance sheet footings grew by 12% over December 2023 to Rs 6.2 trillion resulting from a Rs 660 billion growth in deposits, which rose to Rs 4.8 trillion. Domestic deposits increased by 18% over December 2023 to Rs 4.1 trillion; low-cost deposits steered in more than 65% of the growth, with the CASA ratio improving to 87.3%. Policy rate cuts have led to an overall uptick in lending; as a result, the Bank’s advances increased by 3.9% during the quarter to Rs 1.8 trillion.

Volumetric expansion in both domestic and international markets helped drive a 4.2% growth in net interest income, to Rs 185.3 billion. Non-fund income increased to Rs 60.7 billion – a growth of nearly 60% over the same period last year. HBL continued its leadership in fees which increased by 20% to Rs 36.6 billion in 9M’24. The Bank’s flagship Cards business contributed 43% of the growth, with branch fees, remittances and Bancassurance boosting total fee income. Consequently, HBL’s total revenue increased by 14% to Rs 246.0 billion.

The Bank’s focus on cost optimization has helped contain expenses and further reduce the cost-to-income ratio to 55.6% for Q3’24. The Bank’s Capital Adequacy Ratio (CAR) continued to rise, to a 4-year high of 16.39%, while the Tier-1 CAR increased by 11 bps over Dec’23 to12.55%, well above minimum requirements.

Commenting on the Bank’s results, Muhammad Nassir Salim, President & CEO – HBL, said, "HBL’s 9M’24 results, were driven by leadership position across all business segments, and a focus on serving our clients better. HBL continues to accelerate its digital journey, with majority of its transactions and volumes now being channeled through its digital platforms. We remain committed to our strategic priorities such as Agriculture, SMEs, and Sustainability. HBL continues to contribute to the national exchequer through its significant tax payments. HBL was honoured with the 'Best Board of the Year' award by the Pakistan Institute of Corporate Governance (PICG), in recognition of its exemplary leadership, outstanding governance, and strategic oversight”.

Business Developments

HBL’s mobile and internet banking witnessed a year-on-year growth of 34% in financial transactions and 26% in service requests, with over Rs 2 trillion processed in Q3’24. Konnect by HBL, processed a significant volume of Rs 586 billion, reflecting a year-on-year growth of 16%.

With the highest acquisition, spend volumes, and ENR, the credit cards business led the market with a growth of 30% in card usage, achieving Rs 237 billion in spend and a portfolio size of Rs 40 billion. Throughput at HBL’s POS terminals throughput grew by 27% over the same period last year, to Rs 318 billion.

HBL’s support to the agriculture sector remains strong with total lending exceeding Rs 57 billion. HBL’s resolve to grow the SME business has led to accelerated growth in advances registering a year-on-year increase of 19% to Rs 91 billion.

HBL maintained its leadership in Transaction and Employee Banking. The transaction banking business recorded a throughput of Rs 13.7 trillion, representing a 28% increase compared to the same period last year. Digital transactions grew by 12% to 36 million, accounting for 84% of the overall business.

HBL’s Investment Banking team closed multiple mandates valuing over Rs 145 billion. The team continues to go from strength to strength having received 16 accolades already from international bodies such as Global Finance and The Asset Triple A.”

HBL Symphony® has experienced remarkable growth, with trading volumes exceeding Rs 2.2 trillion in the nine months of 2024. This represents an impressive increase of nearly 14 times the total volume traded on the platform during the same period of the previous year, highlighting the platform's expanding influence in fixed-income trading.

Under the guidelines of the Aga Khan Development Network, HBL remains focused on sustainability and green operations. HBL has implemented its Social and Environmental Management system at all its international locations, allowing these locations to analyze the environmental and social risk of their lending portfolio.

The Bank’s efforts in making a difference in the communities it serves are underscored through a variety of initiatives in Q3’24. The HBL Employee Volunteering Program crossed a milestone of 2,800 volunteering hours in giving back to the community.

Moreover, HBL Foundation allocated over Rs 128 million to various healthcare initiatives during the quarter, benefiting over 50,000 individuals. In the education sector, the Foundation invested nearly Rs 23 million.

Armughan Ahmed Kausar, Head Konnect - HBL (seated 1st from left), Muhammad Salman Ali, CEO - VRG (seated 2nd from left), and Omar Aijaz, Head of Partnerships - Easypaisa (seated 3rd from left), along with Muhammad Arif Khan, Deputy CEO - VRG; Hassham Mansoor, COO - VRG; Aamir Hameed, Head Branchless Banking - HBL; Syed Irfan Ali, Executive Director ACFID - SBP; Abid Qamar, Director ACFID - SBP; Muhammad Imran Khan, Assistant DAirector ACFID - SBP; Umair Ahmad, Assistant Director ACFID - SBP; Malik Jibran Tariq, Assistant Director ACFID - SBP; and Waqar Muhammad, Assistant Director ACFID - SBP, present at the signing ceremony for Agent Interoperability at State Bank of Pakistan.

Agent Interoperability Signing Ceremony

Karachi, January 15, 2025

Virtual Remittance Gateway proudly announces the signing of a historic agreement for Agent Interoperability, between Virtual Remittance Gateway, HBL Konnect, and Easypaisa, in the presence of senior officials from the State Bank of Pakistan (SBP). This momentous occasion marks a significant milestone in the evolution of branchless banking in Pakistan, setting the stage for enhanced financial inclusivity and innovation. The partnership will play a pivotal role in achieving SBP’s vision of a digital financially inclusive Pakistan by promoting innovation and collaboration among financial institutions and their agents.

The agreements inked during the ceremony at SBP represent a significant step toward financial inclusion using an interoperable agent network. The collaboration envisions developing integrations and piloting the solution to test its viability in terms of technical, operational, and business aspects. Based on the pilot results, the solution will be scaled up on a commercial basis with enhanced participation.

By connecting the agent networks of various financial service providers, the cutting-edge VRG’s Interop Switch seeks to establish a unified interoperable agent platform that enables users of any bank to conduct both financial and non-financial operations on any bank’s agent network. The interop switch will present HBL and Easypaisa with unmatched chances to broaden their services nationwide, serving both urban and rural communities. This would guarantee that millions of Pakistanis, wherever they may be, may have a secure, effective, and safe banking experience by drastically lowering obstacles to financial inclusion like accessibility and convenience.

The interoperable Agent platform has many benefits for the users but is not limited to the disbursement of government grants, bill payments, credit services, and micro-insurance services. Further, the Interoperable Agent platform will maximize economic opportunities for women and others in rural and underserved communities while addressing the financial inclusion gender gap and sees strong potential to leverage agent networks for much greater outreach and impact.

Pakistan, Karachi – 23 January 2025

Upholding the ethos of the Aga Khan Development Network (AKDN), HBL believes that impact & sustainability extend beyond charitable giving. HBL, being more than just a bank, is committed to fostering positive change by addressing climate change, promoting financial inclusion, and alleviating poverty. This commitment is reflected in HBL’s ambitious sustainability goals, including its aim to achieve Net Zero emissions by 2030. In 2023, HBL made significant strides towards these goals, including solarizing 235 of its premises, investing Rs 36 billion in renewable energy projects, and prioritizing Diversity, Equity, and Inclusion across its operations.

Sharing his comments, Sultan Ali Allana, Chairman – HBL, stated, “For two decades, we have consistently seized opportunities to promote sustainable development and foster prosperity in the country. Building on the ethos of AKFED, we seek to enrich the lives of those we serve. As financial literacy and inclusion remain our directional vectors, we are cognizant of the need to constantly innovate and leverage technology.

Our focused approach and interventions through HBL’s SME, Agri, and Microfinance arms have ensured banking coverage to over 36 million people throughout the country, most of whom we considered un-bankable.

In 2023, the HBL Board supported the enhancement of the Bank’s contribution to the HBL Foundation (HBLF) from 1% profit after tax to 1.5% profit after tax. With this enhanced capacity, the HBL Foundation has been able to widen its program spread across key areas of need, making robust contributions to healthcare, education, and community development.”

HBL has achieved a remarkable milestone with the HBL Foundation surpassing Rs 3 billion in direct contributions, positively impacting nearly 10 million lives across Pakistan.

The Foundation allocated funds for healthcare, education, and vocational training programs for skill development and sustainable livelihoods. The Foundation also played a pivotal role in disaster response and community welfare.

This landmark achievement is highlighted in HBL’s Impact & Sustainability Report 2023, reaffirming its position as a catalyst for sustainable development in Pakistan. The comprehensive report highlights the Bank’s contributions across economic, social, and environmental dimensions, underscoring its alignment with the United Nations’ Sustainable Development Goals (SDGs) and Global Reporting Initiative (GRI) standards.

The report also outlines tangible achievements marking significant milestones in 2023.

Key Achievements:

• Solarization of 204 HBL branches and 31 offsite ATMs, along with 60 branches of HBL Microfinance Bank, reducing carbon emissions by over 500 metric tons of CO₂ equivalent.
• Rs 36 billion was invested in renewable energy projects, including solar-powered tubewells and community-owned biogas plants, ensuring sustainable energy access for rural areas.
• Rs 82 million was invested in educational infrastructure projects, impacting nearly 18,000 students.
• Support for skill development initiatives, benefiting 11,500 individuals through vocational training programs.
• Launch of HBL Zarai Services Limited, a first-of-its-kind subsidiary in Pakistan dedicated to agricultural extension services, aiming to empower small- and medium-scale farmers.
• Over Rs 100 billion was disbursed to 345,000 farmers, boosting farm profitability and enhancing food security.
• 37 million customers served globally, including 5 million women customers.
• Rs 1.5 billion disbursed to 600 women entrepreneurs, driving economic participation.
• Expansion of SME lending to cross Rs 100 billion, with a focus on small businesses, women entrepreneurs, and freelancers.

HBL invites you to read its Impact and Sustainability Report – 2023 to learn how profitability and sustainability together make a real difference.

Sustainability

Pakistan, Islamabad – 28 January 2025:

HBL Microfinance Bank (HBL MfB) proudly announces the appointment of Maya Inayat Ismail as the Chairperson of the Board of Directors, succeeding Rayomond H. Kotwal. Maya Inayat Ismail was part of the core strategic team that established HBL MfB’s predecessor organisation, FMFB, the first microfinance bank in Pakistan, bringing to life His Highness the Aga Khan’s vision of ensuring access to financial services for underbanked communities. She has been a member of the Board of HBL Microfinance Bank since 2016 and Chair of the FISC Committee, reflecting her passion and dedication to financial inclusion. Maya Inayat Ismail brings over 25 years of experience in the financial sector, with a strong focus on financial services institutions, managing strategic partnerships, and strategy formulation to benefit people at the grassroots level.

The outgoing Chairman, Rayomond H. Kotwal remarked, “It has been an honour to serve as the Chairman of HBL Microfinance Bank. I am proud of what we have achieved together in driving financial inclusion across Pakistan. I am confident that Maya Inayat Ismail’s appointment will usher in a new era of innovation for the Bank, and I look forward to seeing the Bank flourish under her guidance.”

Sultan Ali Allana, Chairman - HBL, expressed his confidence in Maya Inayat Ismail’s appointment, saying, “Maya Inayat Ismail’s expertise, coupled with her unwavering commitment to financial inclusion, will further enhance HBL Microfinance Bank’s ability to address the needs of underserved communities in Pakistan. Maya Inayat Ismail is the first woman to Chair an Aga Khan Fund for Economic Development (AKFED) institution reflecting our vision to break barriers in leadership. I also extend my heartfelt appreciation to the outgoing Chairman Rayomond H. Kotwal for his remarkable leadership, his dedication and his contributions during his tenure, and look forward to the next chapter in the Bank’s legacy.”

Maya Inayat Ismail commented on her appointment, stating, “I am deeply humbled and honoured to take on the role of Chairperson of HBL Microfinance Bank. This is a symbol of the circle of life for me, as it builds on my association with HBL MfB for over two decades. We strive to create a financially inclusive Pakistan; I am committed to building on the incredible progress the Bank has made under Rayomond H. Kotwal’s stewardship. Together with the Board, Management, and employees, I look forward to driving impactful change that empowers individuals and strengthens communities.”

About HBL Microfinance Bank:

HBL Microfinance Bank Ltd. was established in 2002 as the first private sector microfinance bank, licensed by the State Bank of Pakistan. HBL MfB was created through a structured transformation of the credit and savings section of the Aga Khan Rural Support Programme (AKRSP), an integrated development program to pioneer the microfinance sector in the country, operating since 1982 in Gilgit-Baltistan and Chitral.

HBL MfB boasts the largest portfolio in the microfinance industry, serving over 4 million customers through a footprint of 225 locations and 133 ATMs across Pakistan.

HBL MfB was established with the mission to respond to poverty and contribute to the social and economic well-being of society by providing opportunities to thousands of under-privileged households. Through targeted financial and multi-sectoral products and services based on the evolving needs of the poor, HBL MfB enables its clients to strengthen their entrepreneurial base and build financial, physical, and human capital to secure their future.

For media inquiries, please contact:

HBL Microfinance Bank
Corporate Communications Department
Email: corporate.communications@hblmfb.com

Muhammad Nassir Salim, President & CEO - HBL (standing 2nd from left) and Luke Thompson, Managing Director, S&P Global Market Intelligence (standing 3rd from left) at the launch of the HBL and S&P Global Purchasing Managers Index (PMI) for Pakistan at an event in Islamabad.

Pakistan, Islamabad – 14 February 2025:

HBL, in collaboration with S&P Global, announced the launch of the HBL S&P Global PMI® (Purchasing Managers’ Index™) series for Pakistan. This landmark initiative aims to provide valuable data and timely insights into the overall economic health of Pakistan’s manufacturing sector, marking a significant advancement in economic analysis for the country.

The HBL S&P Global PMI is a standardized and internationally recognized economic indicator that will be released monthly, offering critical data on various aspects of the economy. This index is designed to serve as an essential tool for financial institutions, policymakers, and businesses, facilitating informed decision-making and strategic planning across multiple sectors.

During the launch event, senior executives from S&P Global elaborated on the significance of the PMI as a key economic instrument.

Luke Thompson, Managing Director - S&P Global Market Intelligence, remarked, “The launch of Pakistan’s first ever PMI is a significant event contributing to the accessibility of timely and high-frequency data to track economic developments in Pakistan and support decision making by financial institutions, investors and businesses. We expect the new HBL Pakistan Manufacturing PMI will quickly become established as a key indicator in the national economic calendar.”

Muhammad Nassir Salim, President & CEO - HBL, stated, “We are pleased to launch the PMI for Pakistan, which will enhance investor confidence and transparency in our economy.

This index will not only provide valuable insights for businesses but will also serve as a vital resource for policymakers and investors navigating Pakistan’s economic landscape.”

The HBL S&P Global PMI is expected to play a crucial role in fostering greater engagement and investment across various sectors, ultimately contributing to the overall economic growth of Pakistan. The index will be compiled from responses to questionnaires sent to a diverse panel of industries, ensuring a comprehensive representation of the economy.

The HBL S&P Global PMI will be released on the first working day of each month, offering stakeholders a reliable and consistent measure of economic performance. This initiative aims to enhance transparency and provide critical insights into the economic conditions shaping Pakistan’s future, ultimately supporting informed decision-making and strategic planning across various sectors.

Pakistan, Karachi – 19 February 2025:

HBL today declared a record profit before tax of Rs 120.3 billion for the year ended December 31, 2024, 6% higher than in 2023. The profit after tax was Rs 57.8 billion as the Government once again increased the tax rate on Banks to a massive 54%. EPS for 2024 was Rs 39.85, compared to Rs 39.32 in 2023. Along with the results, the Bank declared a final Cash Dividend of Rs 4.25 per share i.e. 42.5% for the year ended December 31, 2024. This is in addition to the interim Cash Dividend(s) already paid at Rs 12 per share i.e. 120%.

HBL’s balance sheet grew by 9% to Rs 6.1 trillion, with total deposits closing at Rs 4.4 trillion, a growth of Rs 228 billion over December 2023. Domestic deposits grew by Rs 187 billion reaching Rs 3.6 trillion, with the CASA ratio showing a strong improvement to reach nearly 90%. HBL’s total advances increased by over 30% to Rs 2.4 trillion with the domestic lending book crossing a landmark Rs 2.0 trillion. Our flagship consumer portfolio continued its growth trajectory, reaching Rs 143 billion, while the Group’s agriculture financing increased to over Rs 100 billion.

Despite drastic monetary easing, which saw a drop of 900bps in the SBP’s Policy Rate over the year, HBL’s net interest income increased to Rs 246 billion. This was supported by a 17% volumetric expansion in the average domestic balance sheet and improved spreads in the international business. Non-fund income grew by an impressive 68% to Rs 96.5 billion, on the back of a very strong contribution from the Treasury business. The fee franchise yet again delivered excellent double-digit growth, increasing by 17% to Rs 49.5 billion; Cards contributed more than 50% of the increase along with solid contributions from Bancassurance and retail banking. HBL’s total revenues thus increased by 14% to an industry-leading Rs 342 billion.

Conscious efforts to optimize costs has contained administrative expense growth to 13%, improving the cost/income ratio to 56.3% in 2024. Despite an uptick in non-performing loans, the infection ratio is at an all-time low of 4.3%. HBL’s sustained profitability has led to a strong improvement in the Capital Adequacy Ratio which increased from 16.0% in Dec’23 to a solid 17.7%, well above required levels.

Commenting on the Bank’s results, Muhammad Nassir Salim, President & CEO – HBL, said, “HBL continues to deliver value for its stakeholders while navigating an increasingly complex external environment. The strong 2024 financial results ratify the Bank’s strategic direction. The Bank is proud to serve its valued clients and play its due role in the economic development of Pakistan.”

Delivering value for stakeholders

The Bank is committed to providing holistic support to the vital agriculture sector to enhance national food security. Earlier this year, HBL launched HBL Zarai Services Limited, a wholly-owned subsidiary aimed at revolutionizing the agricultural value chain.

HBL Zarai focuses on boosting local farming productivity and fostering inclusive growth by providing farmers with agronomy services, crop inputs, access to modern mechanization and more. These services are offered through Zarai Deras, specialized distribution and service centers in Burewalla, Sahiwal, Pakpattan and Sadoke. By improving access to essential resources, HBL Zarai enhances farmer productivity, contributing to the economic development of Pakistan’s agricultural sector.

HBL is the largest lender and mobilizer of government agriculture financing subsidies including solar tube wells, tractors, and livestock. With a total portfolio of over Rs 100 billion, the HBL Group holds the largest market share in both commercial and microfinance agriculture lending in Pakistan.

HBL is fully committed to growing the “S” of SME business in a significant and sustainable way. The Bank’s focus is on cash flow-based lending where it enjoys the highest portfolio in the industry. SME businesses are crucial drivers of the economy and require enhanced access to formal finance. HBL has undertaken a number of initiatives to help transform the SME landscape, fostering growth and creating opportunities for small businesses. As testament to our efforts HBL has been recognized as ‘The Best SME Bank’ by the ‘Pakistan Banking Awards’.

HBL remains a thought leader, and has actively supported SBP and the World Bank, in the development of the National Green Taxonomy. This has allowed the Bank to further identify green financing opportunities for climate change mitigation and adaptation.

In recognition of the Bank’s leadership, performance and innovative approach, Euromoney Awards for Excellence 2024 awarded HBL the accolades of ‘Pakistan’s Best Bank’, ‘Pakistan’s Best Bank for Corporates’, and ‘Pakistan’s Best Bank for ESG’. The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) awarded HBL the accolade of the ‘Best Conventional Bank of the Year Excellence Award’. Moreover, HBL was honoured with the ‘Best Board of the Year’ award by the Pakistan Institute of Corporate Governance (PICG).