The following are some of the comments about the recent purchase of Habib Bank by the AKFED. Obviously not everyone is going to be happy about it. Nevertheless it is interesting from the point of view of how HazarImam and his activities are perceived by others. I hope and pray that the new organisation will work within the framework of the vision of HazarImam and serve as a role model for the operation of the banking institutions in an ethical context and prove these doubts and suspicions as irrelevant to the long term vision of Pakistan.
The recent sale of Pakistan's Habib Bank to Aga Khan Fund for Economic Development
has clearly struck a nerve. I highly recommend reading the op-ed piece below. It starts
out discussing whether the government got an appropriate price from the sale - fair
arguments and valuable questions from an engaged opposition - but then, the tone shifts
towards the end. Here's some quotes:
For example, since the AKFD functions primarily as the welfare driver for a specific community, its staffing, management-employment, out-sourcing, procurement and lending priorities are heavily biased in favour of that community...
...in Pakistan the AKF is known to be deeply involved in executing the education-changing reform agenda of foreign governments, for some of whom it also implements and monitors many other social-objective programs. Post 9/11, it has been entrusted by the Pakistan government with the task of preparing a new syllabus and conducting examinations for an alternate secondary level education.
With control of Habib Bank, in selected geographical areas the AKFD will be in possession of a combination of financial power and mind-control influence not equalled in South Asia by any private enterprise since the East India Company. Without for a moment doubting the AKFD’s good intentions, the fault-lines inherent in such a situation should not be underestimated, especially the possibility that other interested actors can infiltrate and misuse this organization for non-commercial objectives. Importantly, as experienced in many other underdeveloped societies, perhaps also in the charged political atmosphere of Pakistan the perception that any particular community or organization exercises financial power disproportionate to its size may result in its becoming the focus of envy and unwelcome attention.
Habib Bank Activities - AKFED
Purchase of Habib Bank.
For more information on the purchase, please refer to the following address.
http://www.akdn.org/news/HabibBank_2602004.htm
http://www.akdn.org/news/HabibBank_2602004.htm
First Anniversary of the Purchase
Spectacular performance by Habib Bank within a year after taken over of management by AKFED.
Latest news from Dawn .
HBL achieves another milestone Karachi, April 26 PPI: Habib Bank Limited HBL Tuesday reported profit after tax of Rs. 5.6 billion for the year ended December 31,2004 reflecting impressive 41% increase over last year.The bank achieved another milestone by declaring a dividend after12 years within first year of privatization. This indicates progress made in restructuring the bank over past few years, which has gained momentum after recent successful privatization and transfer of management control to Aga Khan Fund for economic development. billion (177%). Trade volumes increased to $ 5,062 million for the year. In addition, HBL maintained its lead position inward remittance business US$ 800 million were brought in through international network of branches.(Posted @ 20:30 PST)
Here is another report about the bank appeared in Gujarati
daily,'Millat', published from Karachi.
"The bank's extraordinary performance is possible mainly due to
competent top management by AKFED....After utilizing some of the
profit for dividends to share holders, the bank is planning to pump
the rest into the bank to provide better and efficient services to
the customers and the businessmen..... Initially it is also planning
to introduce electronic banking in some branches....No doubt such
effective steps for development would compel other private banks to
improve their services which could prove a revolution in banking
sectors in Pakistan in next five to ten years."
Latest news from Dawn .
HBL achieves another milestone Karachi, April 26 PPI: Habib Bank Limited HBL Tuesday reported profit after tax of Rs. 5.6 billion for the year ended December 31,2004 reflecting impressive 41% increase over last year.The bank achieved another milestone by declaring a dividend after12 years within first year of privatization. This indicates progress made in restructuring the bank over past few years, which has gained momentum after recent successful privatization and transfer of management control to Aga Khan Fund for economic development. billion (177%). Trade volumes increased to $ 5,062 million for the year. In addition, HBL maintained its lead position inward remittance business US$ 800 million were brought in through international network of branches.(Posted @ 20:30 PST)
Here is another report about the bank appeared in Gujarati
daily,'Millat', published from Karachi.
"The bank's extraordinary performance is possible mainly due to
competent top management by AKFED....After utilizing some of the
profit for dividends to share holders, the bank is planning to pump
the rest into the bank to provide better and efficient services to
the customers and the businessmen..... Initially it is also planning
to introduce electronic banking in some branches....No doubt such
effective steps for development would compel other private banks to
improve their services which could prove a revolution in banking
sectors in Pakistan in next five to ten years."
2 (two) Reports:
-------------------------
Tuesday, September 19, 2006
HBL expects China buy in few months
SINGAPORE: Pakistan's Habib Bank Ltd hopes to wrap up plans to purchase a stake in China's Urumqi City Commercial Bank in the next few months, Zakir Mahmood, president of the bank, said on Monday. "We have signed a memorandum of understanding with the UCCB," he said. "We hope in the next few months we will reach a conclusive stage." The firm has previously said it's looking to buy a stake of up to 19.9% in UCCB, a move that would mark the first purchase by a Pakistani bank of a stake in a domestic Chinese bank. Foreign investors, mostly European and US banks, have invested more than $20 billion in domestic Chinese banks in the past two years. dow jones newswires
http://www.dailytimes.com.pk/default.as ... 006_pg5_12
Tuesday, September 19, 2006
IFC finances HBL expansion
Staff Report ISLAMABAD: The International Finance Corporation on Monday announced $50 million in long-term funding for Habib Bank Limited (HBL), the largest private commercial bank in Pakistan, to support its post-privatization expansion into the retail, consumer and small and medium-enterprise markets. Habib Bank is the first bank in Pakistan to raise dollar-denominated debt that can be used to expand its capital base and provide loans with longer maturities to its clients.
Beyond financing, the IFC's Private Enterprise Partnership for the Middle East and North Africa (PEP-MENA) will work with the HBL on a range of technical assistance projects to address the shortage of skilled bankers in the expanding Pakistani banking system by upgrading the HBL's staff training facilities and curriculum, increase its capacity to provide credit and other financial services to small and medium businesses, collaborate with the HBL, local banks and banking associations to introduce environmentally and socially sustainable financial products and develop the capacity of banks to make environmental assessment of projects. Michael Essex, IFC's director for the Middle East and North Africa, said: "the IFC's loan and technical assistance will support Habib's post-privatization expansion and make credit available to smaller enterprises that are typically overlooked or underserved by banks, yet are the engine of growth and economic diversification in Pakistan."
The $50 million in IFC financing is part of a broader $120 million investment package for Habib Bank approved by the IFC board, which includes a proposed equity investment and trade finance facilities under the IFC's Global Trade Finance Program.
http://www.dailytimes.com.pk/default.as ... 006_pg5_11
-------------------------
Tuesday, September 19, 2006
HBL expects China buy in few months
SINGAPORE: Pakistan's Habib Bank Ltd hopes to wrap up plans to purchase a stake in China's Urumqi City Commercial Bank in the next few months, Zakir Mahmood, president of the bank, said on Monday. "We have signed a memorandum of understanding with the UCCB," he said. "We hope in the next few months we will reach a conclusive stage." The firm has previously said it's looking to buy a stake of up to 19.9% in UCCB, a move that would mark the first purchase by a Pakistani bank of a stake in a domestic Chinese bank. Foreign investors, mostly European and US banks, have invested more than $20 billion in domestic Chinese banks in the past two years. dow jones newswires
http://www.dailytimes.com.pk/default.as ... 006_pg5_12
Tuesday, September 19, 2006
IFC finances HBL expansion
Staff Report ISLAMABAD: The International Finance Corporation on Monday announced $50 million in long-term funding for Habib Bank Limited (HBL), the largest private commercial bank in Pakistan, to support its post-privatization expansion into the retail, consumer and small and medium-enterprise markets. Habib Bank is the first bank in Pakistan to raise dollar-denominated debt that can be used to expand its capital base and provide loans with longer maturities to its clients.
Beyond financing, the IFC's Private Enterprise Partnership for the Middle East and North Africa (PEP-MENA) will work with the HBL on a range of technical assistance projects to address the shortage of skilled bankers in the expanding Pakistani banking system by upgrading the HBL's staff training facilities and curriculum, increase its capacity to provide credit and other financial services to small and medium businesses, collaborate with the HBL, local banks and banking associations to introduce environmentally and socially sustainable financial products and develop the capacity of banks to make environmental assessment of projects. Michael Essex, IFC's director for the Middle East and North Africa, said: "the IFC's loan and technical assistance will support Habib's post-privatization expansion and make credit available to smaller enterprises that are typically overlooked or underserved by banks, yet are the engine of growth and economic diversification in Pakistan."
The $50 million in IFC financing is part of a broader $120 million investment package for Habib Bank approved by the IFC board, which includes a proposed equity investment and trade finance facilities under the IFC's Global Trade Finance Program.
http://www.dailytimes.com.pk/default.as ... 006_pg5_11
(AFX UK Focus) 2010-02-19 10:06
Pakistan's HBL 2009 net profit at 12.3 bln rupees
KARACHI, Feb 19 (Reuters) - Habib Bank Ltd. (HBL), one of Pakistan's biggest banks, reported on Friday a full 2009 net profit of 12.3 billion rupees ($145 million) compared with a net profit of 10 billion rupees last year.
HBL, majority-owned by the Aga Khan Fund for Economic Development, posted an earning per share of 13.50 rupees, compared with 10.98 in 2008.
HBL was trading 2.52 percent higher at 127 rupees at 0948 GMT, in a broader market that was up 0.49 percent.
http://www.iii.co.uk/news/?type=afxnews ... on=article
Pakistan's HBL 2009 net profit at 12.3 bln rupees
KARACHI, Feb 19 (Reuters) - Habib Bank Ltd. (HBL), one of Pakistan's biggest banks, reported on Friday a full 2009 net profit of 12.3 billion rupees ($145 million) compared with a net profit of 10 billion rupees last year.
HBL, majority-owned by the Aga Khan Fund for Economic Development, posted an earning per share of 13.50 rupees, compared with 10.98 in 2008.
HBL was trading 2.52 percent higher at 127 rupees at 0948 GMT, in a broader market that was up 0.49 percent.
http://www.iii.co.uk/news/?type=afxnews ... on=article
HBL donates Rs 10m for Hunza IDPs
Staff Reporter
Karachi—Habib Bank has donated Rs. 10 million to assist IDPs affected by the natural disaster in Hunza Valley. These funds are meant to support the residents by restoring a semblance of normalcy in their lives and accelerating the process of rehabilitation.
Jhanzeb Mir, Area Manager - Gilgit-Skardu, presented the cheque to Ms. Shama Khalid, Governor Gilgit-Baltistan. Jhanzeb Mir, said, “We think that working together is the only way through which we can overcome the misfortunes that have been caused by this catastrophe. We hope that our contribution will help assuage the difficulties that the people of Hunza Valley will face over the next few months.”
Also speaking on the occasion, the Governor, Gilgit-Baltistan said, “On behalf of the Government of Pakistan, we would like to extend our gratitude and thanks to HBL for their contribution and concern. 10,000 people were affected by the catastrophe that befell our region and we are grateful for the work done not only by HBL, but by various AKDN institutions. We are confident that the support extended by our benefactors will greatly assist in re-establishing the lives of the residents of Hunza Valley.”
http://pakobserver.net/detailnews.asp?id=31948
Staff Reporter
Karachi—Habib Bank has donated Rs. 10 million to assist IDPs affected by the natural disaster in Hunza Valley. These funds are meant to support the residents by restoring a semblance of normalcy in their lives and accelerating the process of rehabilitation.
Jhanzeb Mir, Area Manager - Gilgit-Skardu, presented the cheque to Ms. Shama Khalid, Governor Gilgit-Baltistan. Jhanzeb Mir, said, “We think that working together is the only way through which we can overcome the misfortunes that have been caused by this catastrophe. We hope that our contribution will help assuage the difficulties that the people of Hunza Valley will face over the next few months.”
Also speaking on the occasion, the Governor, Gilgit-Baltistan said, “On behalf of the Government of Pakistan, we would like to extend our gratitude and thanks to HBL for their contribution and concern. 10,000 people were affected by the catastrophe that befell our region and we are grateful for the work done not only by HBL, but by various AKDN institutions. We are confident that the support extended by our benefactors will greatly assist in re-establishing the lives of the residents of Hunza Valley.”
http://pakobserver.net/detailnews.asp?id=31948
Habib Bank growing steadily in UK
LONDON: Habib Bank is making steady strides in the UK through its consumer friendly strategies that has allowed the financial organisation to have turn over of GBP 5.2 million last year.
Speaking at a weekend dinner hosted in honour of its outgoing UK CEO
Nauman Dar, Zakir Mahmood, Chairman, Habib Bank UK said the bank enjoys immense brand amongst its South Asian clientele whose confidence has enabled it to achieve greater heights.
He paid tributes to the leadership of Dar for increasing the profitability of the bank from GBP 1 and half million during his eight years in London as the chief executive officer to its current position.
Habib Bank UK, was incorporated in the UK in 2001.It is a 90.5% owned subsidiary of Habib Bank Limited (HBL). The remaining 9.5% is owned by Allied Bank Limited.
The majority ownership of HBL (51%) rests with the Aga Khan Fund for Economic Development (AKFED) which is registered in Switzerland. 49% is owned by the Government of Pakistan and the eight per cent is listed on the Karachi Stock Exchange.
Mahmood said over the years, HBL has grown its branch network and become the largest private sector bank in Pakistan with over 1,450 branches.
HBL also has global presence through branches, subsidiaries and affiliates in 25 countries.
He told the gathering that in May this year, Habib Bank acquired Habib Sons UK, the original founding family of Habib Bank, together with its Zurich and Leicester branches. These acquisitions, he added, will allow the bank to flourish further and create value for shareholders.
"We understand the personal and business requirements of the South Asian communities and are dedicated to serve their needs through exercising the values of excellence, integrity and customer focus," Mahmood said.
The incoming CEO Anwar Zaidi in his remarks on the occasion, said by adhering to the basic banking principles, Habib Bank UK has been able to see through the difficult and volatile conditions of the recent years.
He praised the managerial skill of his predecessor and said : Through the dedication of all my colleagues and the able stewardship of Nauman, HBL UK has grown steadily into a size that allowed us to join up with another entity in the UK to double our balance sheet.
Dar in his valedictory remarks thanked his colleagues for their support and assistance in helping the bank to grow and progress to its current position and said he looks forward to new challenges in Karachi where he will be the head of both HBL International and of the corporate banking.
http://www.brecorder.com/pakistan/banki ... in-uk.html
LONDON: Habib Bank is making steady strides in the UK through its consumer friendly strategies that has allowed the financial organisation to have turn over of GBP 5.2 million last year.
Speaking at a weekend dinner hosted in honour of its outgoing UK CEO
Nauman Dar, Zakir Mahmood, Chairman, Habib Bank UK said the bank enjoys immense brand amongst its South Asian clientele whose confidence has enabled it to achieve greater heights.
He paid tributes to the leadership of Dar for increasing the profitability of the bank from GBP 1 and half million during his eight years in London as the chief executive officer to its current position.
Habib Bank UK, was incorporated in the UK in 2001.It is a 90.5% owned subsidiary of Habib Bank Limited (HBL). The remaining 9.5% is owned by Allied Bank Limited.
The majority ownership of HBL (51%) rests with the Aga Khan Fund for Economic Development (AKFED) which is registered in Switzerland. 49% is owned by the Government of Pakistan and the eight per cent is listed on the Karachi Stock Exchange.
Mahmood said over the years, HBL has grown its branch network and become the largest private sector bank in Pakistan with over 1,450 branches.
HBL also has global presence through branches, subsidiaries and affiliates in 25 countries.
He told the gathering that in May this year, Habib Bank acquired Habib Sons UK, the original founding family of Habib Bank, together with its Zurich and Leicester branches. These acquisitions, he added, will allow the bank to flourish further and create value for shareholders.
"We understand the personal and business requirements of the South Asian communities and are dedicated to serve their needs through exercising the values of excellence, integrity and customer focus," Mahmood said.
The incoming CEO Anwar Zaidi in his remarks on the occasion, said by adhering to the basic banking principles, Habib Bank UK has been able to see through the difficult and volatile conditions of the recent years.
He praised the managerial skill of his predecessor and said : Through the dedication of all my colleagues and the able stewardship of Nauman, HBL UK has grown steadily into a size that allowed us to join up with another entity in the UK to double our balance sheet.
Dar in his valedictory remarks thanked his colleagues for their support and assistance in helping the bank to grow and progress to its current position and said he looks forward to new challenges in Karachi where he will be the head of both HBL International and of the corporate banking.
http://www.brecorder.com/pakistan/banki ... in-uk.html
Over Rs19m looted as poor policing emboldens robbers
Kamran Mansoor
Friday, November 25, 2011
[Over Rs19m looted as poor policing emboldens robbers]
Robbers looted more than Rs19 million from a private bank and a security company in the city on Thursday, just a day after a branch of another private bank was robbed of millions.
On Wednesday, four men had taken away around Rs4 million from a branch of the Habib Metropolitan Bank situated in the Karim Centre of Gulshan-e-Iqbal. The heist was committed in just eight minutes.
On Thursday, criminals, including two men allegedly involved in Wednesday’s hold-up, set a new robbery record as they took only five minutes to deprive the Aga Khan Jamaat Khana Branch of the Habib Bank of Rs4.4 million.
Police said seven men riding a hi-roof and a motorcycle pulled up in front of the bank in the Soldier Bazaar area at around 9:15am. Five of the suspects entered the bank, overpowered the guard, Khanzada, and snatched his weapon. They then told all staffers and customers to lie down on the floor.
As three of the robbers kept watch, others collected Rs4.4 million from the counter and the strong room. Before fleeing, they damaged all CCTV cameras and also took away footage.
According to the bank manager, Ameena Shewani, the robbers completed their operation in five to six minutes. All the robbers were said to be young well-dressed.
Later, police teams, including personnel of the Special Investigation Unit (SIU), arrived in the bank and gathered evidence. The bank manager lodged an FIR at the Soldier Bazaar police station against unknown criminals. It was the 18th bank robbery in the city this year.
SIU SSP Raja Umar Khattab told The News that two of the suspects were identified as Nasir and Ghulab Shah, saying that they were also involved in Wednesday’s heist.
He said Nasir hailed from Parachinar and Gulab was from Kohat. Both were also said to be involved in more than six bank robberies.
In another brazen incident of robbery, six men riding two motorcycles intercepted a vehicle (KA-1701) of the Phoenix security company near Korangi Crossing in the Awami Colony police limits.
They opened fire at the vehicle with sophisticated weapons and injured the driver, Ameer Zameen Khan. The two security guards in the vehicle returned fire. In the shootout, both security guards — Meer Kabeer Khan, 50, and Gul Faiyaz Khan, 45 – were wounded. Two of the suspects then opened the money box with gunshots and escaped with Rs15 million.
Later, police arrived on the scene and started investigations. They were taking the injured to the JPMC in a critical condition when one of them, Meer Kabeer Khan, breathed his last.
According to the police, the vehicle had been carrying over Rs75 million from different branches when it was attacked. The police said the robbers only took Rs15 million as they could not spot the rest of the money in haste.
The injured guard told the police that the robbers appeared to be militants.
http://www.thenews.com.pk/TodaysPrintDe ... 11/25/2011
Kamran Mansoor
Friday, November 25, 2011
[Over Rs19m looted as poor policing emboldens robbers]
Robbers looted more than Rs19 million from a private bank and a security company in the city on Thursday, just a day after a branch of another private bank was robbed of millions.
On Wednesday, four men had taken away around Rs4 million from a branch of the Habib Metropolitan Bank situated in the Karim Centre of Gulshan-e-Iqbal. The heist was committed in just eight minutes.
On Thursday, criminals, including two men allegedly involved in Wednesday’s hold-up, set a new robbery record as they took only five minutes to deprive the Aga Khan Jamaat Khana Branch of the Habib Bank of Rs4.4 million.
Police said seven men riding a hi-roof and a motorcycle pulled up in front of the bank in the Soldier Bazaar area at around 9:15am. Five of the suspects entered the bank, overpowered the guard, Khanzada, and snatched his weapon. They then told all staffers and customers to lie down on the floor.
As three of the robbers kept watch, others collected Rs4.4 million from the counter and the strong room. Before fleeing, they damaged all CCTV cameras and also took away footage.
According to the bank manager, Ameena Shewani, the robbers completed their operation in five to six minutes. All the robbers were said to be young well-dressed.
Later, police teams, including personnel of the Special Investigation Unit (SIU), arrived in the bank and gathered evidence. The bank manager lodged an FIR at the Soldier Bazaar police station against unknown criminals. It was the 18th bank robbery in the city this year.
SIU SSP Raja Umar Khattab told The News that two of the suspects were identified as Nasir and Ghulab Shah, saying that they were also involved in Wednesday’s heist.
He said Nasir hailed from Parachinar and Gulab was from Kohat. Both were also said to be involved in more than six bank robberies.
In another brazen incident of robbery, six men riding two motorcycles intercepted a vehicle (KA-1701) of the Phoenix security company near Korangi Crossing in the Awami Colony police limits.
They opened fire at the vehicle with sophisticated weapons and injured the driver, Ameer Zameen Khan. The two security guards in the vehicle returned fire. In the shootout, both security guards — Meer Kabeer Khan, 50, and Gul Faiyaz Khan, 45 – were wounded. Two of the suspects then opened the money box with gunshots and escaped with Rs15 million.
Later, police arrived on the scene and started investigations. They were taking the injured to the JPMC in a critical condition when one of them, Meer Kabeer Khan, breathed his last.
According to the police, the vehicle had been carrying over Rs75 million from different branches when it was attacked. The police said the robbers only took Rs15 million as they could not spot the rest of the money in haste.
The injured guard told the police that the robbers appeared to be militants.
http://www.thenews.com.pk/TodaysPrintDe ... 11/25/2011
Privatisation deal: No illegality in HBL bidding process, says SC
Bench says transparency in the bidding process of the bank was not in question.
By Qaiser Zulfiqar
Published: November 30, 2011
The petitioners had contended that HBL’s value at the time of bidding in 2004 was Rs22.4 billion, which being the highest bid, was lower than the existing value of the net assets of the bank.
ISLAMABAD:
While dismissing identical petitions seeking to rescind Habib Bank Limited’s privatisation, a three-member bench of the Supreme Court observed that no illegality was committed in the bidding process for the bank.
After listening to arguments, the bench, comprising Justice Tassaduq Hussain Jillani, Justice Mian Saqib Nisar and Justice Ejaz Afzal Khan, announced a short order saying transparency in the bidding process of the bank was not in question. The transparency had been challenged by two petitions.
Counsel for the cabinet committee on privatisation (CCoP) and privatisation commission (PC) Chaudhry Aitzaz Ahsan said in his arguments that the HBL bidding process was carried out in a transparent way and all assets of the bank were declared in black and white prior to bidding. Responding to a question raised by Justice Saqib Nisar, the counsel submitted that based on details relating to bonds and amount of tax receivables as assets in the balance sheet of the bank, the reference price was fixed.
The privatisation of HBL was challenged by former planning secretary Dr Akhtar Hassan Khan, President Watan Party, Barrister Zafarullah Khan and one Amjad Ali who contended that facts were concealed by CCoP, PC, HBL and the Agha Khan Fund for Development (AKFD) during the bank’s auction.
The petitioners had contended that HBL’s value at the time of bidding in 2004 was Rs22.4 billion. Their contention was that this, being the highest bid, was lower than the existing value of the net assets of the bank, which they claim were Rs23.7 billion in 2003. After accepting the petitions the SC had issued notices to the CCoP, chairman PC, President HBL and to the AKFD on September 16, 2011.
Muhammad Ikram Chaudhry, counsel for former planning secretary Dr Akhtar Hassan Khan, contended that AKFD as the successful bidder purchased HBL’s shares/transferee of management through the disputed privatisation process, adding that at the time of bidding in 2003-04 the bidder AKFD was availing a loan facility from HBL for development and construction of Serena Hotels.
Chaudhry pleaded that the bidding of HBL was conducted for ulterior gains where material facts were concealed and argued that this provided sufficient grounds for disqualification from bidding.
Published in The Express Tribune, November 30th, 2011.
http://tribune.com.pk/story/299903/priv ... s-says-sc/
Bench says transparency in the bidding process of the bank was not in question.
By Qaiser Zulfiqar
Published: November 30, 2011
The petitioners had contended that HBL’s value at the time of bidding in 2004 was Rs22.4 billion, which being the highest bid, was lower than the existing value of the net assets of the bank.
ISLAMABAD:
While dismissing identical petitions seeking to rescind Habib Bank Limited’s privatisation, a three-member bench of the Supreme Court observed that no illegality was committed in the bidding process for the bank.
After listening to arguments, the bench, comprising Justice Tassaduq Hussain Jillani, Justice Mian Saqib Nisar and Justice Ejaz Afzal Khan, announced a short order saying transparency in the bidding process of the bank was not in question. The transparency had been challenged by two petitions.
Counsel for the cabinet committee on privatisation (CCoP) and privatisation commission (PC) Chaudhry Aitzaz Ahsan said in his arguments that the HBL bidding process was carried out in a transparent way and all assets of the bank were declared in black and white prior to bidding. Responding to a question raised by Justice Saqib Nisar, the counsel submitted that based on details relating to bonds and amount of tax receivables as assets in the balance sheet of the bank, the reference price was fixed.
The privatisation of HBL was challenged by former planning secretary Dr Akhtar Hassan Khan, President Watan Party, Barrister Zafarullah Khan and one Amjad Ali who contended that facts were concealed by CCoP, PC, HBL and the Agha Khan Fund for Development (AKFD) during the bank’s auction.
The petitioners had contended that HBL’s value at the time of bidding in 2004 was Rs22.4 billion. Their contention was that this, being the highest bid, was lower than the existing value of the net assets of the bank, which they claim were Rs23.7 billion in 2003. After accepting the petitions the SC had issued notices to the CCoP, chairman PC, President HBL and to the AKFD on September 16, 2011.
Muhammad Ikram Chaudhry, counsel for former planning secretary Dr Akhtar Hassan Khan, contended that AKFD as the successful bidder purchased HBL’s shares/transferee of management through the disputed privatisation process, adding that at the time of bidding in 2003-04 the bidder AKFD was availing a loan facility from HBL for development and construction of Serena Hotels.
Chaudhry pleaded that the bidding of HBL was conducted for ulterior gains where material facts were concealed and argued that this provided sufficient grounds for disqualification from bidding.
Published in The Express Tribune, November 30th, 2011.
http://tribune.com.pk/story/299903/priv ... s-says-sc/
SC upholds HBL privatisation as legal
Shoaib A Raja
Thursday, February 09, 2012
3
ISLAMABAD: The Supreme Court on Wednesday declared the Habib Bank Limited (HBL) privatisation lawful saying under the best global practices the government had transferred the bank’s ownership in a transparent manner to Aga Khan Fund for Economic Development (AKFED) as successful bidder.
Earlier, some petitions filed against the privatization of HBL were disposed of by a three-member bench of the apex court headed by Justice Tassaduq Hussain Jillani, who announced a short order in the matter on November 29, 2011.
Almost the 70-paged detailed judgment was authored by Justice Tassaduq Hussain Jillani in identical constitutional petitions filed by Dr Akhtar Hassan Khan and Watan Party through its president Barrister Zafarullah Khan, who made the Federation of Pakistan and others as respondents.
The petitioners had challenged the HBL open bidding of December 12, 2003 under Article 184(3) of the Constitution of Pakistan. One of the petitioners, Dr Akhtar Hassan Khan, former Federal Secretary Planning, Government of Pakistan, had alleged that the bidding process of HBL was not transparent, saying the Economic Coordination Committee (ECC) approved issuance of bonds amounting to Rs9.84 billion against income tax funds due to the HBL
http://www.thenews.com.pk/TodaysPrintDe ... 1799&Cat=2
Shoaib A Raja
Thursday, February 09, 2012
3
ISLAMABAD: The Supreme Court on Wednesday declared the Habib Bank Limited (HBL) privatisation lawful saying under the best global practices the government had transferred the bank’s ownership in a transparent manner to Aga Khan Fund for Economic Development (AKFED) as successful bidder.
Earlier, some petitions filed against the privatization of HBL were disposed of by a three-member bench of the apex court headed by Justice Tassaduq Hussain Jillani, who announced a short order in the matter on November 29, 2011.
Almost the 70-paged detailed judgment was authored by Justice Tassaduq Hussain Jillani in identical constitutional petitions filed by Dr Akhtar Hassan Khan and Watan Party through its president Barrister Zafarullah Khan, who made the Federation of Pakistan and others as respondents.
The petitioners had challenged the HBL open bidding of December 12, 2003 under Article 184(3) of the Constitution of Pakistan. One of the petitioners, Dr Akhtar Hassan Khan, former Federal Secretary Planning, Government of Pakistan, had alleged that the bidding process of HBL was not transparent, saying the Economic Coordination Committee (ECC) approved issuance of bonds amounting to Rs9.84 billion against income tax funds due to the HBL
http://www.thenews.com.pk/TodaysPrintDe ... 1799&Cat=2
tribune.com.pk/story/856002/financial-moves-hbl-looking-to-acquire-first-microfinance-bank/
Financial moves: HBL looking to acquire First Microfinance Bank
By Kazim Alam
Published: March 20, 2015
HBL disclosed that it is committed to investing a maximum amount of Rs2 billion in acquiring First Microfinance Bank ‘by way of equity’ over the next three years. PHOTO: EXPRESS
KARACHI:
Habib Bank (HBL) is expected to enter the microfinance banking segment by acquiring Pakistan’s second largest microfinance bank in terms of the value of savings, according to a regulatory filing by the country’s biggest commercial bank on Thursday.
“HBL intends to look at acquiring significant shareholding in First Microfinance Bank, which already has a base and presence in the microfinance sector all over Pakistan,” HBL said in the notice while choosing not to disclose the amount of investment it is willing to commit.
However, under the statement of material facts that it published a fortnight ago along with its annual report for 2014, HBL disclosed that it is committed to investing a maximum amount of Rs2 billion in acquiring First Microfinance Bank ‘by way of equity’ over the next three years.
Pakistan’s largest conventional bank with total assets of over Rs1.7 trillion, HBL operated nearly 1,600 branches at the end of 2014.
Although financial statements of First Microfinance Bank are not available publicly, centralised databank for the microfinance banking industry shows its total value of savings at the end of 2014 was Rs8.7 billion with a market share of 20.1%. Its gross loan portfolio was over Rs5 billion, which made it the fifth largest provider of microcredit with a market share of 7.6%.
HBL intends to obtain a “majority shareholding” in First Microfinance Bank, reads the ‘special resolution’ that will be proposed at the 73rd annual general meeting of HBL shareholders on March 27.
The exact shareholding that HBL is going to acquire depends on the share price, which will be determined following the completion of due diligence and valuation by an independent firm of chartered accounts. However, HBL has stated that it will purchase shares up to a total value of Rs2 billion. First Microfinance Bank had equity of Rs1.1 billion at the end of 2013.
The State Bank of Pakistan (SBP) has granted HBL the permission to conduct due diligence and evaluate the operations of First Microfinance Bank.
Currently, HBL does not hold any shares in First Microfinance Bank directly. However, the two entities are associated by means of their parent company. Aga Khan Development Network, through Aga Khan Fund for Economic Development (AKFED) and Aga Khan Agency for Microfinance (AKAM), owns more than 20% shares in both HBL and First Microfinance Bank.
First Microfinance Bank became profitable in 2013 when it posted earnings per share of Rs1.06 after recording a loss per share of Rs0.93 and Rs0.50 in 2011 and 2012, respectively. The operating profit of First Microfinance Bank was Rs171 million in 2013, up 204.8% from the preceding year, according to the statement of material facts released by HBL.
Published in The Express Tribune, March 20th, 2015.
Financial moves: HBL looking to acquire First Microfinance Bank
By Kazim Alam
Published: March 20, 2015
HBL disclosed that it is committed to investing a maximum amount of Rs2 billion in acquiring First Microfinance Bank ‘by way of equity’ over the next three years. PHOTO: EXPRESS
KARACHI:
Habib Bank (HBL) is expected to enter the microfinance banking segment by acquiring Pakistan’s second largest microfinance bank in terms of the value of savings, according to a regulatory filing by the country’s biggest commercial bank on Thursday.
“HBL intends to look at acquiring significant shareholding in First Microfinance Bank, which already has a base and presence in the microfinance sector all over Pakistan,” HBL said in the notice while choosing not to disclose the amount of investment it is willing to commit.
However, under the statement of material facts that it published a fortnight ago along with its annual report for 2014, HBL disclosed that it is committed to investing a maximum amount of Rs2 billion in acquiring First Microfinance Bank ‘by way of equity’ over the next three years.
Pakistan’s largest conventional bank with total assets of over Rs1.7 trillion, HBL operated nearly 1,600 branches at the end of 2014.
Although financial statements of First Microfinance Bank are not available publicly, centralised databank for the microfinance banking industry shows its total value of savings at the end of 2014 was Rs8.7 billion with a market share of 20.1%. Its gross loan portfolio was over Rs5 billion, which made it the fifth largest provider of microcredit with a market share of 7.6%.
HBL intends to obtain a “majority shareholding” in First Microfinance Bank, reads the ‘special resolution’ that will be proposed at the 73rd annual general meeting of HBL shareholders on March 27.
The exact shareholding that HBL is going to acquire depends on the share price, which will be determined following the completion of due diligence and valuation by an independent firm of chartered accounts. However, HBL has stated that it will purchase shares up to a total value of Rs2 billion. First Microfinance Bank had equity of Rs1.1 billion at the end of 2013.
The State Bank of Pakistan (SBP) has granted HBL the permission to conduct due diligence and evaluate the operations of First Microfinance Bank.
Currently, HBL does not hold any shares in First Microfinance Bank directly. However, the two entities are associated by means of their parent company. Aga Khan Development Network, through Aga Khan Fund for Economic Development (AKFED) and Aga Khan Agency for Microfinance (AKAM), owns more than 20% shares in both HBL and First Microfinance Bank.
First Microfinance Bank became profitable in 2013 when it posted earnings per share of Rs1.06 after recording a loss per share of Rs0.93 and Rs0.50 in 2011 and 2012, respectively. The operating profit of First Microfinance Bank was Rs171 million in 2013, up 204.8% from the preceding year, according to the statement of material facts released by HBL.
Published in The Express Tribune, March 20th, 2015.
Pakistan to raise more than $1 billion via Habib Bank sale
Syed Raza Hassan and Katharine Houreld
KARACHI, Pakistan (Reuters) - Pakistan will raise more than $1 billion by selling its entire stake in Habib Bank Limited, a government official said Saturday, a deal that will be the country's biggest privatisation so far.
The government will sell its 42.5 percent stake in Pakistan's biggest bank at 168 rupees (about $1.68) per share after a successful book-building exercise last week, Mohammad Zubair, the chairman of the Privatisation Commission, said.
"It was an international and domestic offering and we received tremendous response from both the markets," he told reporters.
"Pakistan will be richer by around over a billion dollars due to this transaction and the bulk of money, more than 764 million dollars, is in foreign exchange."
The sale is part of Pakistani Prime Minister Nawaz Sharif's plans to privatise 68 public companies, most of them loss-making. They include two gas companies, an oil company, about 10 banks, the national airline and power distribution companies.
The government has said the sell-offs will prevent further losses and stabilise an economy crippled by power shortages, corruption and militant violence.
Habib, Pakistan's oldest bank, is 51 percent owned by the Agha Khan Fund for Economic Development and 7.5 percent by private investors.
Habib's balance sheet grew by nine percent last year to $19 billion, according to its 2014 annual report. Profit after tax increased by 38 percent to $318 million and earnings per share increased from $0.15 in 2013 to $0.22 for 2014.
"This strong performance was primarily driven by a 25 percent increase in total revenue," the report said.
Last month, Habib announced that it had signed an agreement with Barclays Bank Plc (BARC.L) for the acquisition of the Barclays banking business in Pakistan, subject to regulatory approvals.
Amreen Soorani, an analyst with JS Global Capital Limited, said she expected Habib's earnings to grow at a five-year compound annual growth rate of nine percent, partly driven by increasing retail interests and remittances.
But falling interest rates might eventually hurt profitability, she said. Pakistan's State Bank cut interest rates to eight percent last month, an 11-year low.
Zubair said that Habib had interests in multiple sectors and was expected to provide some local financing for the Pakistan-China economic corridor, a $45.6 billion project involving rail, road, and energy links.
Chinese president Xi Jinping is expected to visit Pakistan this month and sign a number of agreements related to the project.
(Writing by Katharine Houreld. Editing by Jane Merriman)
http://finance.yahoo.com/news/pakistan- ... 32846.html
Syed Raza Hassan and Katharine Houreld
KARACHI, Pakistan (Reuters) - Pakistan will raise more than $1 billion by selling its entire stake in Habib Bank Limited, a government official said Saturday, a deal that will be the country's biggest privatisation so far.
The government will sell its 42.5 percent stake in Pakistan's biggest bank at 168 rupees (about $1.68) per share after a successful book-building exercise last week, Mohammad Zubair, the chairman of the Privatisation Commission, said.
"It was an international and domestic offering and we received tremendous response from both the markets," he told reporters.
"Pakistan will be richer by around over a billion dollars due to this transaction and the bulk of money, more than 764 million dollars, is in foreign exchange."
The sale is part of Pakistani Prime Minister Nawaz Sharif's plans to privatise 68 public companies, most of them loss-making. They include two gas companies, an oil company, about 10 banks, the national airline and power distribution companies.
The government has said the sell-offs will prevent further losses and stabilise an economy crippled by power shortages, corruption and militant violence.
Habib, Pakistan's oldest bank, is 51 percent owned by the Agha Khan Fund for Economic Development and 7.5 percent by private investors.
Habib's balance sheet grew by nine percent last year to $19 billion, according to its 2014 annual report. Profit after tax increased by 38 percent to $318 million and earnings per share increased from $0.15 in 2013 to $0.22 for 2014.
"This strong performance was primarily driven by a 25 percent increase in total revenue," the report said.
Last month, Habib announced that it had signed an agreement with Barclays Bank Plc (BARC.L) for the acquisition of the Barclays banking business in Pakistan, subject to regulatory approvals.
Amreen Soorani, an analyst with JS Global Capital Limited, said she expected Habib's earnings to grow at a five-year compound annual growth rate of nine percent, partly driven by increasing retail interests and remittances.
But falling interest rates might eventually hurt profitability, she said. Pakistan's State Bank cut interest rates to eight percent last month, an 11-year low.
Zubair said that Habib had interests in multiple sectors and was expected to provide some local financing for the Pakistan-China economic corridor, a $45.6 billion project involving rail, road, and energy links.
Chinese president Xi Jinping is expected to visit Pakistan this month and sign a number of agreements related to the project.
(Writing by Katharine Houreld. Editing by Jane Merriman)
http://finance.yahoo.com/news/pakistan- ... 32846.html
http://www.khaleejtimes.com/looking-int ... habib-bank
Looking into the bullish case for Pakistan's Habib Bank
Matein Khalid/Dubai
Filed on May 1, 2016 | Last updated on May 1, 2016 at 08.39 pm
Habib Bank has a Rs2.2 trillion balance sheet and current accounts rose 15 per cent to Rs600 billion in 2015.
(AFP photo)
I believe Habib Bank is on the precipice of a valuation re-rating.
Habib bank is one of Pakistan's oldest, biggest retain/corporate banks, now privatised last year with a 51 per cent controlling stake held by the Aga Khan Fund for Economic Development. Its recent price fall from Rs240 to Rs172 is a compelling opportunity to own an undervalued, well managed proxy for consumption and credit offtake in a 190 million population country now at one of history's significant political and financial inflection points. With a market cap of a mere $2.4 billion, a price/earnings ratio of 7.4 per cent, a price/book value of 1.3 and a dividend yield of eight per cent, I believe Habib Bank is on the precipice of a valuation re-rating that could turn this bank's shares into a frontier market money gusher for us. Why?
One, Pakistan's GDP growth has begun to revive to 4.5 per cent, largely boosted by consumption and a revival in business confidence/capex. The $6.6 billion IMF loan package has been a macro stabiliser and the fall in crude prices has enabled Pakistan to boost its foreign reserves to above $20 billion. Nawaz Sharif's pro-business PML government has also embraced the restructuring and privatisation of state owned enterprises.
Two, Pakistan's past "decade of terror" exacted a tragic toll in human lives and led to a fall in the loan/GDP ratio from 27 per cent to a dismal 15 per cent as capex plummeted. Loan/GDP is 30 per cent in both Bangladesh and Sri Lanka. Yet the Pakistan Army's offensives against the Taliban in South Waziristan have been hugely successful and improved the security/counter-terrorism climate. In fact, the Afghan President has even requested for Pakistani military strikes against the Taliban on the Durand Line.
Three, Pakistan will enjoy both a peace and demographic dividend in the next three years if the TTP and sectarian terrorists are vanquished. Two-thirds of its 190 million citizens are below the age of 30.
Four, while Praetorianism and serial military coups were a recurrent theme in Pakistan's post Partition history, the PPP government of Asif Zardari completed its term, as will Nawaz Sharif's PML as well as adhere to the IMF loan program. Pakistan is unique in international politics as the only state that has a geopolitical "too big to fail" put option underwritten by Washington, Beijing, Riyadh and Abu Dhabi.
Five, after a horrific year for emerging markets, Pakistan trades at a valuation of eight times earnings despite a systemic improvement in its political/financial (interest rates are at 43 year lows) and fiscal risk. I remember Pakistan equities traded as high as 13.8 times earnings during the bull market in the General Musharraf-Shaukat Aziz era and Pakistani banks traded at 2.6 bull market peaks. Habib Bank Limited seems inexpensive and unloved to me despite its central role in the $46 billion China economic corridor, its 22 per cent return on equity and 17 per cent capital adequacy ratio. The enforcement order from Uncle Sam against the bank's New York branch has led to offshore fund manager selling and is an ideal entry point to accumulate its shares.
Six, Habib Bank has a Rs2.2 trillion balance sheet and current accounts rose 15 per cent to Rs600 billion in 2015. These constitute 37 per cent of the bank's 1.6 trillion deposit base and the domestic CASA ratio has improved to 85.6 per cent from 80 per cent. These are dream metrics for an investor in international banking.
Seven, while the bank has high non-performing loans that must be managed, I am optimistic that management slashed coverage at the last earnings conference call by CFO Raymond Kotwal (who I remember as a Grammarian six pointer in his Cambridge "O" levels in the lost world of Z.A Bhutto's Karachi!). True, first quarter earnings were a disappointment due to flat net interest rate margins and mediocre capital markets/fee income growth, but these are short term setbacks. The real silver lining is the 74 per cent sequential decline in provisions and the stellar 90 per cent coverage ratios. Low cost deposits, economies of scale, an Islamic/international/investment/mobile banking franchise all mean Habib Bank's return on equity could easily rise to 25 per cent in the next three years. This means a valuation re-rating is inevitable, ceteris paribus-though all else rarely remains the same in Pakistan. Dr. Johnson said patriotism is the last refuge of the scoundrel but he forgot to mention deep value investors can also succumb to this emotion!
Looking into the bullish case for Pakistan's Habib Bank
Matein Khalid/Dubai
Filed on May 1, 2016 | Last updated on May 1, 2016 at 08.39 pm
Habib Bank has a Rs2.2 trillion balance sheet and current accounts rose 15 per cent to Rs600 billion in 2015.
(AFP photo)
I believe Habib Bank is on the precipice of a valuation re-rating.
Habib bank is one of Pakistan's oldest, biggest retain/corporate banks, now privatised last year with a 51 per cent controlling stake held by the Aga Khan Fund for Economic Development. Its recent price fall from Rs240 to Rs172 is a compelling opportunity to own an undervalued, well managed proxy for consumption and credit offtake in a 190 million population country now at one of history's significant political and financial inflection points. With a market cap of a mere $2.4 billion, a price/earnings ratio of 7.4 per cent, a price/book value of 1.3 and a dividend yield of eight per cent, I believe Habib Bank is on the precipice of a valuation re-rating that could turn this bank's shares into a frontier market money gusher for us. Why?
One, Pakistan's GDP growth has begun to revive to 4.5 per cent, largely boosted by consumption and a revival in business confidence/capex. The $6.6 billion IMF loan package has been a macro stabiliser and the fall in crude prices has enabled Pakistan to boost its foreign reserves to above $20 billion. Nawaz Sharif's pro-business PML government has also embraced the restructuring and privatisation of state owned enterprises.
Two, Pakistan's past "decade of terror" exacted a tragic toll in human lives and led to a fall in the loan/GDP ratio from 27 per cent to a dismal 15 per cent as capex plummeted. Loan/GDP is 30 per cent in both Bangladesh and Sri Lanka. Yet the Pakistan Army's offensives against the Taliban in South Waziristan have been hugely successful and improved the security/counter-terrorism climate. In fact, the Afghan President has even requested for Pakistani military strikes against the Taliban on the Durand Line.
Three, Pakistan will enjoy both a peace and demographic dividend in the next three years if the TTP and sectarian terrorists are vanquished. Two-thirds of its 190 million citizens are below the age of 30.
Four, while Praetorianism and serial military coups were a recurrent theme in Pakistan's post Partition history, the PPP government of Asif Zardari completed its term, as will Nawaz Sharif's PML as well as adhere to the IMF loan program. Pakistan is unique in international politics as the only state that has a geopolitical "too big to fail" put option underwritten by Washington, Beijing, Riyadh and Abu Dhabi.
Five, after a horrific year for emerging markets, Pakistan trades at a valuation of eight times earnings despite a systemic improvement in its political/financial (interest rates are at 43 year lows) and fiscal risk. I remember Pakistan equities traded as high as 13.8 times earnings during the bull market in the General Musharraf-Shaukat Aziz era and Pakistani banks traded at 2.6 bull market peaks. Habib Bank Limited seems inexpensive and unloved to me despite its central role in the $46 billion China economic corridor, its 22 per cent return on equity and 17 per cent capital adequacy ratio. The enforcement order from Uncle Sam against the bank's New York branch has led to offshore fund manager selling and is an ideal entry point to accumulate its shares.
Six, Habib Bank has a Rs2.2 trillion balance sheet and current accounts rose 15 per cent to Rs600 billion in 2015. These constitute 37 per cent of the bank's 1.6 trillion deposit base and the domestic CASA ratio has improved to 85.6 per cent from 80 per cent. These are dream metrics for an investor in international banking.
Seven, while the bank has high non-performing loans that must be managed, I am optimistic that management slashed coverage at the last earnings conference call by CFO Raymond Kotwal (who I remember as a Grammarian six pointer in his Cambridge "O" levels in the lost world of Z.A Bhutto's Karachi!). True, first quarter earnings were a disappointment due to flat net interest rate margins and mediocre capital markets/fee income growth, but these are short term setbacks. The real silver lining is the 74 per cent sequential decline in provisions and the stellar 90 per cent coverage ratios. Low cost deposits, economies of scale, an Islamic/international/investment/mobile banking franchise all mean Habib Bank's return on equity could easily rise to 25 per cent in the next three years. This means a valuation re-rating is inevitable, ceteris paribus-though all else rarely remains the same in Pakistan. Dr. Johnson said patriotism is the last refuge of the scoundrel but he forgot to mention deep value investors can also succumb to this emotion!
share in First MicroFinance Bank Limited
Islamabad: HBL has acquired a 51% majority shareholding in the First MicroFinance Bank Limited (FMFB), the first and oldest microfinance bank in Pakistan with a presence in over 150 locations covering 66 districts. FMFB’s roots lie in the credit and savings programmes of the Aga Khan Rural Support Program (AKRSP) dating back to 1982. A signing ceremony to mark the event was held today in Islamabad in the presence of Princess Zahra Aga Khan and Prince Rahim Aga Khan.
More...
http://www.thenews.com.pk/print/122865- ... nk-Limited
******
HBL acquires majority shares of FMFB
ISLAMABAD: Habib Bank Limited (HBL) has acquired 51% majority shareholding in the First MicroFinance Bank Limited (FMFB), the first and oldest microfinance bank in Pakistan with a presence in over 150 locations across the country.
FMFB's roots lie in the credit and savings programmes of the Aga Khan Rural Support Programme (AKRSP) dating back to 1982. A signing ceremony to mark the event was held on Wednesday in Islamabad in the presence of Princess Zahra Aga Khan and Prince Rahim Aga Khan.
More...
http://dailytimes.com.pk/business/26-Ma ... es-of-fmfb
Islamabad: HBL has acquired a 51% majority shareholding in the First MicroFinance Bank Limited (FMFB), the first and oldest microfinance bank in Pakistan with a presence in over 150 locations covering 66 districts. FMFB’s roots lie in the credit and savings programmes of the Aga Khan Rural Support Program (AKRSP) dating back to 1982. A signing ceremony to mark the event was held today in Islamabad in the presence of Princess Zahra Aga Khan and Prince Rahim Aga Khan.
More...
http://www.thenews.com.pk/print/122865- ... nk-Limited
******
HBL acquires majority shares of FMFB
ISLAMABAD: Habib Bank Limited (HBL) has acquired 51% majority shareholding in the First MicroFinance Bank Limited (FMFB), the first and oldest microfinance bank in Pakistan with a presence in over 150 locations across the country.
FMFB's roots lie in the credit and savings programmes of the Aga Khan Rural Support Programme (AKRSP) dating back to 1982. A signing ceremony to mark the event was held on Wednesday in Islamabad in the presence of Princess Zahra Aga Khan and Prince Rahim Aga Khan.
More...
http://dailytimes.com.pk/business/26-Ma ... es-of-fmfb
As Received
Princess Zahra Aga Khan and Prince Rahim Aga Khan were at the signing ceremony yesterday in Islamabad...
FMFB now becomes a 51% subsidiary of HBL in Pakistan.
FMFB is the first and oldest microfinance bank in Pakistan with a presence in over 150 locations covering 66 districts. Its roots lie in the credit and savings programmes of the Aga Khan Rural Support Program (AKRSP) dating back to 1982.
Pakistan’s largest conventional bank with total assets of over Rs2.2 trillion, HBL operated 1,663 branches at the end of 2015. The two entities are already associated by means of their parent company. Aga Khan Development Network, through Aga Khan Fund for Economic Development (AKFED) and Aga Khan Agency for Microfinance (AKAM), owns more than 20% shares in both HBL and First Microfinance Bank.
First Microfinance Bank became profitable in 2013 when it posted earnings per share of Rs1.06 after recording a loss per share of Rs0.93 and Rs0.50 in 2011 and 2012, respectively. The operating profit of First Microfinance Bank was Rs171 million in 2013, up 204.8% from the preceding year, according to the statement of material facts released by HBL last year.
Financial moves: HBL looking to acquire First Microfinance Bank
Although financial statements of First Microfinance Bank are not available publicly, centralised databank for the microfinance banking industry shows its total value of savings at the end of 2015 was Rs9.6 billion with a market share of 14.9%. Its gross loan portfolio was over Rs6.2 billion, which made it the fifth largest provider of microcredit with a market share of 6.8%.
HBL is apparently on an expansion spree. One of its wholly owned subsidiaries, HBL Asset Management, recently purchased 100% shares of PICIC Asset Management Company from NIB Bank for Rs4.1 billion.
Published in The Express Tribune, May 27th, 2016.
On 27 May 2016, at 11:48, Ghulam Panjwani <[email protected]> wrote:
§ HBL acquires majority share in First MicroFinance Bank Limited
May 27, 2016
Islamabad: HBL has acquired a 51% majority shareholding in the First MicroFinance Bank Limited (FMFB), the first and oldest microfinance bank in Pakistan with a presence in over 150 locations covering 66 districts. FMFB’s roots lie in the credit and savings programmes of the Aga Khan Rural Support Program (AKRSP) dating back to 1982. A signing ceremony to mark the event was held today in Islamabad in the presence of Princess Zahra Aga Khan and Prince Rahim Aga Khan.
FMFB offers targeted financial and multi-sectoral products and services based on the evolving needs of its clients, including a wide range of flexible loan products to serve the diverse financial needs of the unbanked and the under-banked in the rural, urban and semi-urban areas in Pakistan. The Bank also offers micro-insurance products with credit and saving services to all borrowers to provide protection against life, health and financial liabilities.
Speaking on the occasion, Sultan Ali Allana, Chairman HBL said, “The acquisition is in line with HBL’s commitment to be a leader in financial inclusion with an emphasis on serving customers from all segments of society across all areas of Pakistan”.
Nauman K Dar, HBL’s President & CEO said “Today’s investment will enable HBL to more directly influence the microfinance space, accelerate inclusion and rapidly scale up the customer base. HBL will provide guidance and enable FMFB to leverage technology based synergies such as branchless and mobile banking which are ideally suited to service this mass segment efficiently”.
Princess Zahra Aga Khan and Prince Rahim Aga Khan were at the signing ceremony yesterday in Islamabad...
FMFB now becomes a 51% subsidiary of HBL in Pakistan.
FMFB is the first and oldest microfinance bank in Pakistan with a presence in over 150 locations covering 66 districts. Its roots lie in the credit and savings programmes of the Aga Khan Rural Support Program (AKRSP) dating back to 1982.
Pakistan’s largest conventional bank with total assets of over Rs2.2 trillion, HBL operated 1,663 branches at the end of 2015. The two entities are already associated by means of their parent company. Aga Khan Development Network, through Aga Khan Fund for Economic Development (AKFED) and Aga Khan Agency for Microfinance (AKAM), owns more than 20% shares in both HBL and First Microfinance Bank.
First Microfinance Bank became profitable in 2013 when it posted earnings per share of Rs1.06 after recording a loss per share of Rs0.93 and Rs0.50 in 2011 and 2012, respectively. The operating profit of First Microfinance Bank was Rs171 million in 2013, up 204.8% from the preceding year, according to the statement of material facts released by HBL last year.
Financial moves: HBL looking to acquire First Microfinance Bank
Although financial statements of First Microfinance Bank are not available publicly, centralised databank for the microfinance banking industry shows its total value of savings at the end of 2015 was Rs9.6 billion with a market share of 14.9%. Its gross loan portfolio was over Rs6.2 billion, which made it the fifth largest provider of microcredit with a market share of 6.8%.
HBL is apparently on an expansion spree. One of its wholly owned subsidiaries, HBL Asset Management, recently purchased 100% shares of PICIC Asset Management Company from NIB Bank for Rs4.1 billion.
Published in The Express Tribune, May 27th, 2016.
On 27 May 2016, at 11:48, Ghulam Panjwani <[email protected]> wrote:
§ HBL acquires majority share in First MicroFinance Bank Limited
May 27, 2016
Islamabad: HBL has acquired a 51% majority shareholding in the First MicroFinance Bank Limited (FMFB), the first and oldest microfinance bank in Pakistan with a presence in over 150 locations covering 66 districts. FMFB’s roots lie in the credit and savings programmes of the Aga Khan Rural Support Program (AKRSP) dating back to 1982. A signing ceremony to mark the event was held today in Islamabad in the presence of Princess Zahra Aga Khan and Prince Rahim Aga Khan.
FMFB offers targeted financial and multi-sectoral products and services based on the evolving needs of its clients, including a wide range of flexible loan products to serve the diverse financial needs of the unbanked and the under-banked in the rural, urban and semi-urban areas in Pakistan. The Bank also offers micro-insurance products with credit and saving services to all borrowers to provide protection against life, health and financial liabilities.
Speaking on the occasion, Sultan Ali Allana, Chairman HBL said, “The acquisition is in line with HBL’s commitment to be a leader in financial inclusion with an emphasis on serving customers from all segments of society across all areas of Pakistan”.
Nauman K Dar, HBL’s President & CEO said “Today’s investment will enable HBL to more directly influence the microfinance space, accelerate inclusion and rapidly scale up the customer base. HBL will provide guidance and enable FMFB to leverage technology based synergies such as branchless and mobile banking which are ideally suited to service this mass segment efficiently”.
Pakistan Banking Awards: Best Bank for Small Businesses and Agriculture Award
By Our Correspondent
Published: May 15, 2016
Organisers claim awards are merit-based, independent and free of pressure. PHOTO: ONLINE
Exract:
Habib Bank (HBL) received the Best Bank for Small Businesses and Agriculture Award for its strong performance, diversification and quality of small and medium enterprises (SME) and agricultural lending nationwide.
HBL also grabbed the award for the Best Environment and Social Governance Bank for contributing the most in terms of the long-term sustainability of the environment, employees, customers and communities.
http://tribune.com.pk/story/1103573/pak ... best-bank/
By Our Correspondent
Published: May 15, 2016
Organisers claim awards are merit-based, independent and free of pressure. PHOTO: ONLINE
Exract:
Habib Bank (HBL) received the Best Bank for Small Businesses and Agriculture Award for its strong performance, diversification and quality of small and medium enterprises (SME) and agricultural lending nationwide.
HBL also grabbed the award for the Best Environment and Social Governance Bank for contributing the most in terms of the long-term sustainability of the environment, employees, customers and communities.
http://tribune.com.pk/story/1103573/pak ... best-bank/
Asiamoney best bank awards 2019: Pakistan
Award winners Best domestic bank: HBL
Best corporate and investment bank: HBL
Best bank for CSR: HB
After a miserable year in 2017, Pakistan’s biggest bank bounced back in 2018 to become, well, bigger still. HBL took a hit to its bottom line and its reputation when the New York bank authorities fined it $225 million in 2017 for a decade of compliance breaches. With a new chief executive, ex-JPMorgan alumnus Muhammad Aurangzeb, at the helm to replace Nauman Dar, who left in the wake of the New York trouble, HBL rebounded to report annual profit after tax of PRs12.4 billion ($90 million) for the 2018 calendar year, up 41% from 2017. HBL said it achieved that number despite what it described as “an ever-evolving landscape of regulatory changes.” That’s a reference to the new broom Aurangzeb has swept through the country’s oldest bank, which was founded before Pakistan became a nation. Returning to Pakistan after 18 years abroad with JPMorgan and ABN Amro, Aurangzeb vowed to institute the world’s best standards in compliance, which he says is simply sound business practice. So far, he says, customers seem happy to join him on that journey. Deposits grew 7% in 2018, despite Pakistan’s grim economic environment and a change of government. This year, HBL made PRs1 trillion in advances for the first time; another benchmark, having received double that in annual deposits in 2015 – the first Pakistani bank to achieve both levels. That speaks to how dominant HBL is in Pakistan; 11 million customers accessing 1,700 branches for a market share of 15%. If Imran Khan’s new government delivers even half what it promises, Aurangzeb says HBL is poised to soar even higher – and put the New York setback well behind it. ▲ Back to top Best corporate and investment bank: HBL In a faltering economy, HBL’s corporate and investment banking business managed to stand tall in 2018. The commercial banking side experienced record growth, as its lending book expanded 21% in 2018 against the previous calendar year. At the end of 2018, HBL’s lending book was tracking at a record high of PRs63.8 billion ($460 million). With a large number of China-devoted desks at the head office in Karachi, the capital Islamabad, and uniquely for a foreign bank, in China’s western metropolis Urumqi, HBL has positioned itself for a bonanza from the massive China-Pakistan Economic Corridor (CPEC) infrastructure programme. HBL’s investment banking business, run by Farhan Talib, says it closed 10 transactions, worth a total of over $3.5 billion, between September 2017 and September 2018. Notable deals by the bank included advising Pakistan’s first private-sector transmission line project; this is the CPEC-related, 878-kilometre circuit that is delivering power to Lahore, Pakistan’s second-biggest city, and is a $1.7 billion project backed by the world’s largest utility, China’s State Grid Corporation. Another big CPEC deal advised by HBL was the $520 million Thar Energy coal station in provincial Sindh, in Pakistan’s south. As of November 2018, HBL has managed $6 billion worth of CPEC business, and that number looks set to rise. In November, HBL tied up with China’s largest investment bank, China International Capital Corporation Limited (CICC), to jointly provide investment banking services to Pakistan and Chinese companies.
https://www.euromoney.com/article/b1ddg ... 9-pakistan
Award winners Best domestic bank: HBL
Best corporate and investment bank: HBL
Best bank for CSR: HB
After a miserable year in 2017, Pakistan’s biggest bank bounced back in 2018 to become, well, bigger still. HBL took a hit to its bottom line and its reputation when the New York bank authorities fined it $225 million in 2017 for a decade of compliance breaches. With a new chief executive, ex-JPMorgan alumnus Muhammad Aurangzeb, at the helm to replace Nauman Dar, who left in the wake of the New York trouble, HBL rebounded to report annual profit after tax of PRs12.4 billion ($90 million) for the 2018 calendar year, up 41% from 2017. HBL said it achieved that number despite what it described as “an ever-evolving landscape of regulatory changes.” That’s a reference to the new broom Aurangzeb has swept through the country’s oldest bank, which was founded before Pakistan became a nation. Returning to Pakistan after 18 years abroad with JPMorgan and ABN Amro, Aurangzeb vowed to institute the world’s best standards in compliance, which he says is simply sound business practice. So far, he says, customers seem happy to join him on that journey. Deposits grew 7% in 2018, despite Pakistan’s grim economic environment and a change of government. This year, HBL made PRs1 trillion in advances for the first time; another benchmark, having received double that in annual deposits in 2015 – the first Pakistani bank to achieve both levels. That speaks to how dominant HBL is in Pakistan; 11 million customers accessing 1,700 branches for a market share of 15%. If Imran Khan’s new government delivers even half what it promises, Aurangzeb says HBL is poised to soar even higher – and put the New York setback well behind it. ▲ Back to top Best corporate and investment bank: HBL In a faltering economy, HBL’s corporate and investment banking business managed to stand tall in 2018. The commercial banking side experienced record growth, as its lending book expanded 21% in 2018 against the previous calendar year. At the end of 2018, HBL’s lending book was tracking at a record high of PRs63.8 billion ($460 million). With a large number of China-devoted desks at the head office in Karachi, the capital Islamabad, and uniquely for a foreign bank, in China’s western metropolis Urumqi, HBL has positioned itself for a bonanza from the massive China-Pakistan Economic Corridor (CPEC) infrastructure programme. HBL’s investment banking business, run by Farhan Talib, says it closed 10 transactions, worth a total of over $3.5 billion, between September 2017 and September 2018. Notable deals by the bank included advising Pakistan’s first private-sector transmission line project; this is the CPEC-related, 878-kilometre circuit that is delivering power to Lahore, Pakistan’s second-biggest city, and is a $1.7 billion project backed by the world’s largest utility, China’s State Grid Corporation. Another big CPEC deal advised by HBL was the $520 million Thar Energy coal station in provincial Sindh, in Pakistan’s south. As of November 2018, HBL has managed $6 billion worth of CPEC business, and that number looks set to rise. In November, HBL tied up with China’s largest investment bank, China International Capital Corporation Limited (CICC), to jointly provide investment banking services to Pakistan and Chinese companies.
https://www.euromoney.com/article/b1ddg ... 9-pakistan
HBL partners with Ehsaas to benefit 7.5 million in Pakistan
Karachi, Pakistan, 9 April 2020 - Habib Bank Limited (HBL) has partnered with the Government of Pakistan to enable the delivery of the Ehsaas Emergency Cash programme, the largest social safety net initiative in Pakistan’s history.
This programme has been launched by the Government of Pakistan to support the daily wagers and piece-rate workers who have suffered from the lockdown in the country due to the ongoing Coronavirus (COVID-19) pandemic.
HBL is leading this effort across Sind, Baluchistan, Punjab and ICT, in disbursing approximately PKR 90 billion to an estimated 7.5 million beneficiaries. The new initiative builds on an existing programme between HBL and Ehsaas, known as Kafaalat (meaning sufficiency) which provides support to 3 million beneficiaries and benefits the most deserving women across the country. HBL will now expand its contribution to provide emergency cash assistance of PKR 12,000 per family.
HBL is one of the two Ehsaas exclusive funds disbursement partners selected to enable the payment of emergency cash.
“We are honoured to expand our partnership with Ehsaas and to play our part in assisting the Government of Pakistan during this difficult time,” said Muhammad Aurangzeb, President and CEO, HBL.
“We fully support the Prime Minister of Pakistan in this initiative and laud the support given by the Provincial Governments for the programme.
“While the Coronavirus crisis continues to develop and cause uncertainty to all of us, HBL is keenly aware of its duty to support Pakistan at this difficult time,” he said. “The Ehsaas Emergency Cash Programme brings together various programmes for poverty alleviation into a single platform while leveraging the role of the private sector and digital technologies. HBL’s national presence, large distribution network, branchless banking platform HBL Konnect and investment in technology and talent, enables the Bank to undertake this huge task.”
Dr Sania Nishtar, Special Assistant to the Prime Minister on Poverty Alleviation an Social Safety and Chairperson BISP, stated that through the Ehsaas Emergency Cash Programme, the Government will provide social protection to more than 12 million deserving families affected by the economic downturn due to the Coronavirus outbreak. The Government has developed a detailed beneficiary identification process, SMS campaign, district level verification procedure, wealth profiling criteria, and payment mechanism, thus ensuring rule based implementation to benefit the most deserving.
https://www.akdn.org/press-release/hbl- ... n-pakistan
Karachi, Pakistan, 9 April 2020 - Habib Bank Limited (HBL) has partnered with the Government of Pakistan to enable the delivery of the Ehsaas Emergency Cash programme, the largest social safety net initiative in Pakistan’s history.
This programme has been launched by the Government of Pakistan to support the daily wagers and piece-rate workers who have suffered from the lockdown in the country due to the ongoing Coronavirus (COVID-19) pandemic.
HBL is leading this effort across Sind, Baluchistan, Punjab and ICT, in disbursing approximately PKR 90 billion to an estimated 7.5 million beneficiaries. The new initiative builds on an existing programme between HBL and Ehsaas, known as Kafaalat (meaning sufficiency) which provides support to 3 million beneficiaries and benefits the most deserving women across the country. HBL will now expand its contribution to provide emergency cash assistance of PKR 12,000 per family.
HBL is one of the two Ehsaas exclusive funds disbursement partners selected to enable the payment of emergency cash.
“We are honoured to expand our partnership with Ehsaas and to play our part in assisting the Government of Pakistan during this difficult time,” said Muhammad Aurangzeb, President and CEO, HBL.
“We fully support the Prime Minister of Pakistan in this initiative and laud the support given by the Provincial Governments for the programme.
“While the Coronavirus crisis continues to develop and cause uncertainty to all of us, HBL is keenly aware of its duty to support Pakistan at this difficult time,” he said. “The Ehsaas Emergency Cash Programme brings together various programmes for poverty alleviation into a single platform while leveraging the role of the private sector and digital technologies. HBL’s national presence, large distribution network, branchless banking platform HBL Konnect and investment in technology and talent, enables the Bank to undertake this huge task.”
Dr Sania Nishtar, Special Assistant to the Prime Minister on Poverty Alleviation an Social Safety and Chairperson BISP, stated that through the Ehsaas Emergency Cash Programme, the Government will provide social protection to more than 12 million deserving families affected by the economic downturn due to the Coronavirus outbreak. The Government has developed a detailed beneficiary identification process, SMS campaign, district level verification procedure, wealth profiling criteria, and payment mechanism, thus ensuring rule based implementation to benefit the most deserving.
https://www.akdn.org/press-release/hbl- ... n-pakistan
HBL wins “Asia Best Bank Transformation 2020” award by Euromoney
The Bank also wins ”Pakistan’s Best Bank 2020” for a second year running.
Karachi, Pakistan, 16 July 2020 - Euromoney awarded the Habib Bank Ltd (HBL) the dual accolades of Asia’s Best Bank Transformation 2020 and Pakistan’s Best Bank 2020 (the latter award for the second year running). Key elements that helped HBL win these awards were HBL’s work in the sphere of digitalisation, the Bank’s growing presence in China and its business initiatives with Chinese corporations and financial institutions.
Leading the transformation:
- HBL digitally disbursed more than US$ 750 million (PKR 125 Billion) to over 10 million Pakistani households under the Government of Pakistan’s Ehsaas Emergency Cash Programme for COVID-19 relief.
- HBL is a regional banking powerhouse, with branch presence in China and a leadership role in the CPEC projects.
Commenting on the award, Muhammad Aurangzeb, President and CEO, HBL, said, “This accolade reflects the strides HBL has made in its pivot towards becoming a ‘technology company with a banking license’. HBL’s digital banking platform, HBL Konnect, has over 4 million customers, of whom 25% are women, thus driving the country’s and the Bank’s Financial Inclusion agenda.”
https://www.akdn.org/press-release/hbl- ... -euromoney
The Bank also wins ”Pakistan’s Best Bank 2020” for a second year running.
Karachi, Pakistan, 16 July 2020 - Euromoney awarded the Habib Bank Ltd (HBL) the dual accolades of Asia’s Best Bank Transformation 2020 and Pakistan’s Best Bank 2020 (the latter award for the second year running). Key elements that helped HBL win these awards were HBL’s work in the sphere of digitalisation, the Bank’s growing presence in China and its business initiatives with Chinese corporations and financial institutions.
Leading the transformation:
- HBL digitally disbursed more than US$ 750 million (PKR 125 Billion) to over 10 million Pakistani households under the Government of Pakistan’s Ehsaas Emergency Cash Programme for COVID-19 relief.
- HBL is a regional banking powerhouse, with branch presence in China and a leadership role in the CPEC projects.
Commenting on the award, Muhammad Aurangzeb, President and CEO, HBL, said, “This accolade reflects the strides HBL has made in its pivot towards becoming a ‘technology company with a banking license’. HBL’s digital banking platform, HBL Konnect, has over 4 million customers, of whom 25% are women, thus driving the country’s and the Bank’s Financial Inclusion agenda.”
https://www.akdn.org/press-release/hbl- ... -euromoney
The HBL (Habib Bank Limited) tower in Karachi, Pakistan, is LEED-certified. LEED (Leadership in Energy and Environmental Design) is a green building certification programme used worldwide.
HBL
HBL becomes the first Pakistani bank to open a branch in Beijing
Karachi, Pakistan, 22 March 2021 - HBL became the first Pakistani bank to open a branch and serve clients in Beijing, China’s capital city.
HBL is the first and only bank from Pakistan to have a branch in Beijing. It is also one of three banks from South Asia and the MENA region to offer end-to-end RMB intermediation in China. 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 licenses to better facilitate customers’ requirements in multiple currencies.
HBL’s journey in China began in 2005 when it established its Representative Office in Beijing, which was followed by the establishment of branch operations in Urumqi in 2017. With the opening in Beijing, 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. The opening confirms the China market as 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.
The Chairman of HBL, Sultan Ali Allana, said, “We look forward to playing a leading role in facilitating regional trade and serving our valued customers throughout HBL’s international network.”
Muhammad Aurangzeb, President & CEO of HBL said: “China remains the lynchpin of HBL’s international strategy. 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.” Mr. Aurangzeb also expressed appreciation to the regulators for having granted the branch license and their support in “developing market-based capabilities and encouraging financial institutions like HBL to provide clients best-in-class product and services”.
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, joined the ceremony virtually.
https://www.akdn.org/press-release/hbl- ... ch-beijing
HBL Enriching Lives: Leading a purpose led transformation for itself & the nation
The ethos of 'Enriching lives’ enables HBL to drive its impact and sustainability to contribute positively to environment, economy, and society. Using these metrics, the Bank is working towards creating long- term value for their shareholders and employees, through an integrated sustainability strategy for communities. The report highlights the value and goals that HBL has, the right tools, teams, and mechanisms through which it intends to contribute towards Sustainable Development Goals.
In June, Pakistan’s largest commercial bank, HBL, released its first-ever Impact & Sustainability report (2021), ‘Enriching Lives.’ A much needed impact analysis, which all major companies in the country’s private sector need to do if they are to play their part in helping the nation overcome its dire situation on climate change, along with its unabated population growth, which have made it seemingly difficult for the country to achieve the Sustainable Development Goals (SDGs) by 2030. The report outlines HBL’s institutional interventions to serve the needs of communities, people, and the planet.
HBL, with a customer base of almost 30 million, plays a crucial role in the country’s financial eco-system, but also of consequence is the role it plays in the nation’s overall eco-system. The bank’s overall strategic thrust is based on a six-point agenda, which emphasizes giving back to the community as one of its key pillars.
Bank’s Strategic Thrust
Bank with a soul
HBL, which is a part of the Aga Khan Fund for Economic Development (AKFED), understands keenly the value of maintaining a balance between what they do and what they share back with the community. For this very reason, its spending on social and developmental causes is the highest in the industry and in specific sectors of the country.
Understanding the significant challenges of health, education, and community development in Pakistan, HBL’s philanthropic funding strategy follows the ethos of “Enriching Lives.” The Bank currently allocates one percent of its profit after tax to the HBL Foundation, a non-profit Trust created in 2010 to promote the development and advancing the welfare and well-being of the people of Pakistan, with the object of improving their quality of life. From 2023, this allocation will increase to 1.5 percent of profit after tax.
Read more: HBL launches its first impact and sustainability report https://www.globalvillagespace.com/hbl- ... ty-report/
The report highlights HBL’s work through a data-driven summary of their Impact and Sustainability performance, most importantly linking it with the SDG goals. Given this is the first report, they shared the progress to date on ongoing programs and activities. However, they promise that going forward; a yearly update will be given through the HBL Impact & Sustainability Report.
HBL was actively involved in crafting the SBP’s Green Banking Guidelines in 2017, which encourages environmental risk management within banks and promotes climate finance to reduce environmental vulnerabilities. In addition, the Bank integrated the Aga Khan Development Network’s (AKDN’s) own cross-cutting environment & climate committee guidelines into its environmental management systems.
HBL has also shown its commitment to sustainable development and encouraged Pakistan’s banking industry to adopt Environmental, Social, and Governance (ESG) practices in their strategic decision-making. All its internal businesses, investments, and operations are designed strategically to create a more sustainable, equitable, and financially inclusive world where the current population can meet its needs without depleting the resources of future generations.
Enriching lives
HBL is a pioneer in the banking sector in Pakistan in developing and implementing a Social and Environmental Management Policy focusing on ensuring robust system risks in line with the International Finance Corporation’s (IFC) Performance Standards. As part of this policy, it has set out some key goals. They will try to achieve net-zero by eliminating all avoidable emissions by 2030. In 2020, the HBL decided not to finance any new coal projects or financing for coal of any kind. In 2021, the Bank stopped financing industries that contribute to deforestation. They are also actively working on reducing their carbon footprint and incorporating LEED/ IFC standards in most of their major office buildings. The iconic HBL Tower in Karachi is LEED-certified; the most widely used green building rating system globally.
In 2019, HBL also signed the Green Investment Principles (GIPs) with China and 27 other global institutions. It includes incorporating seven principles at three levels – strategy, operations, and innovation – for green investments in the Belt and Road Initiative (BRI). These principles are intended to promote environmental friendliness, climate resilience, social inclusiveness, and improved management of environmental and social risks for new investment projects in the BRI in light of the UN SDGs and the Paris Climate Agreement.
Read more: HBL – A ‘Technology Company with a Banking License’ https://www.globalvillagespace.com/hbl- ... g-license/
The ethos of ‘Enriching lives’ is being used to drive their KPIs at the macro level to report impact and sustainability at three levels: the environment, economy, and society. The report identifies programs and other initiatives it is working on within these three areas and across the SDGs – highlighted very neatly and effectively in an impact table. Out of their projects under the economy category – those under financial inclusion touch on eight SDGs; similarly, transforming agriculture touches on six goals. Under the environmental level, their projects in Green investment touch five SDGs, and renewable energy touches four SDGs. One of the key things that HBL’s Impact and Sustainability measurement and management does is that it enables the Bank to optimize programs and actively contribute to protecting the country’s resources.
Steps towards sustainable environment
HBL has set up a Social and Environmental Management System (SEMS) policy that ensures a robust system, which safeguards against credit, liability, and reputational risks in line with the IFC performance standards. This ESG policy is also used to benchmark customers against ESG’s strict criteria. It also made a major effort to align its own internal operations with the SBP’s 2017 green guidelines. It set up a Green Operations Unit in 2018 that has implemented multiple initiatives to reduce the impact of HBL’s operations on the environment while also reducing the cost of the Bank. The initiatives include automating systems, remote monitoring, and process re-engineering. The unit focused on conserving energy and reducing the carbon footprint of the Bank, reducing HBL’s paper consumption, and lessening the Bank’s reliance on fossil fuels/ grid electricity through implementing solar panels in over 170+ locations, among other things.
Building sustainable economy
HBL has quickly moved into the digital realm and has created a tagline for itself as a ‘technology company with a banking license’. Under building a sustainable economy, the report identifies the extensive areas that HBL is working on, including digitalization, financial inclusion, financial literacy programs, SMEs, Development Finance, microfinance, and low-cost housing. The HBL Impact & Sustainability Progress at a glance table highlights how the bank’s financial inclusion projects also touch on the most SDGs.
It understands that the financial inclusion of the population is critical to Pakistan’s economic development and the Bank’s progress. It is spearheading projects to deliver easily accessible, comprehensive banking solutions to all segments of society with a particular focus on solutions for women, the under banked, and the unbanked segments. HBL’s Impact report states, “For us, harnessing digitization for the benefit of society is a conscious decision toward our objective of fostering a technology driven financial ecosystem for the masses in Pakistan.” HBL uses technology to simplify financial transactions by digitizing money flow across individuals and institutions to exponentially increase customer acquisition. Additionally, HBL is supporting Farm-to-Fork ecosystem in the country which aims to make food value chains more equitable, healthier and greener.
During the Covid-19 pandemic, HBL worked with the government to ensure emergency cash distribution to over 14 million households under the Ehsaas Kafalat program. In addition, among other notable programs, the Bank has partnered with various provincial governments to enable transparent, efficient, and quick access to subsidies for farmers. This partnership is now evolving to help target digital subsidies at the time of input purchase by farmers.
Read more: HBL teams up with PAFLA to empower Pakistan’s freelance industry https://www.globalvillagespace.com/hbl- ... -industry/
Walking the talk of sustainable society
HBL, as one of the country’s oldest banks and as part of the Aga Khan Development Network, has a strong sense of belief in the role it can play in nation-building, providing thought leadership for the country and promoting diversity and cultural heritage of the nation. Its dedication to uplifting communities is also evident in its existing and the future increase it has announced in its philanthropic spending commitment to health, education, disaster response, and women empowerment.
HBL prides itself that its Social Governance and Management policies lay the groundwork for the Bank to develop a sustainable financial ecosystem that is people-centric and not just profit-driven. Its walking the talk starts at home with HBL’s commitment to employing 25 percent females in its workforce and creating an accessible work friendly environment in which they can prosper.
It has a diversity council that has 44 percent female representation and is cross-functional; it is mandated to drive HBL’s gender diversity strategy to steer the Bank’s vision. At the time of privatization in 2004, women were only 3 percent of employees; this has increased to more than 20 percent after focused recruitment efforts.
A crucial part of creating a sustainable society is HBL’s work with promoting art and culture in the country, including sponsoring children’s art competitions, holding monthly interactive sessions on art, and having its own art collection by new and contemporary artists throughout its offices. In 2021, HBL supported the restoration and renovation of the Galerie Sadequain at Frere Hall in Karachi, over 30,000 people visited the Ayesha Khalid’s exhibition, enabling it to become a permanent, international standard exhibition space at a public venue.
HBL Foundation – through which a large part of HBL’s philanthropic funding for social development takes place, plays a significant role in the belief in needing a sustainable society. It especially realizes that there is a dire need in the country in the fields of education and health to help improve the lives of communities. The Foundation was created as an irrevocable trust by HBL in 2010 and monitors and evaluates the grants that it provides annually to multiple organizations across Pakistan.
Read more: HBL launches its 9th Prestige Lounge in Karachi https://www.globalvillagespace.com/hbl- ... n-karachi/
HBL is working towards long-term value creation for its shareholders and employees, where value is integrated into its sustainability strategy for communities. HBL Impact and Sustainability report highlights the importance and goals that HBL has and the strategy through which it intends to achieve these, and how we can evaluate its results on this front going forward.
https://www.globalvillagespace.com/hbl- ... he-nation/
In June, Pakistan’s largest commercial bank, HBL, released its first-ever Impact & Sustainability report (2021), ‘Enriching Lives.’ A much needed impact analysis, which all major companies in the country’s private sector need to do if they are to play their part in helping the nation overcome its dire situation on climate change, along with its unabated population growth, which have made it seemingly difficult for the country to achieve the Sustainable Development Goals (SDGs) by 2030. The report outlines HBL’s institutional interventions to serve the needs of communities, people, and the planet.
HBL, with a customer base of almost 30 million, plays a crucial role in the country’s financial eco-system, but also of consequence is the role it plays in the nation’s overall eco-system. The bank’s overall strategic thrust is based on a six-point agenda, which emphasizes giving back to the community as one of its key pillars.
Bank’s Strategic Thrust
Bank with a soul
HBL, which is a part of the Aga Khan Fund for Economic Development (AKFED), understands keenly the value of maintaining a balance between what they do and what they share back with the community. For this very reason, its spending on social and developmental causes is the highest in the industry and in specific sectors of the country.
Understanding the significant challenges of health, education, and community development in Pakistan, HBL’s philanthropic funding strategy follows the ethos of “Enriching Lives.” The Bank currently allocates one percent of its profit after tax to the HBL Foundation, a non-profit Trust created in 2010 to promote the development and advancing the welfare and well-being of the people of Pakistan, with the object of improving their quality of life. From 2023, this allocation will increase to 1.5 percent of profit after tax.
Read more: HBL launches its first impact and sustainability report https://www.globalvillagespace.com/hbl- ... ty-report/
The report highlights HBL’s work through a data-driven summary of their Impact and Sustainability performance, most importantly linking it with the SDG goals. Given this is the first report, they shared the progress to date on ongoing programs and activities. However, they promise that going forward; a yearly update will be given through the HBL Impact & Sustainability Report.
HBL was actively involved in crafting the SBP’s Green Banking Guidelines in 2017, which encourages environmental risk management within banks and promotes climate finance to reduce environmental vulnerabilities. In addition, the Bank integrated the Aga Khan Development Network’s (AKDN’s) own cross-cutting environment & climate committee guidelines into its environmental management systems.
HBL has also shown its commitment to sustainable development and encouraged Pakistan’s banking industry to adopt Environmental, Social, and Governance (ESG) practices in their strategic decision-making. All its internal businesses, investments, and operations are designed strategically to create a more sustainable, equitable, and financially inclusive world where the current population can meet its needs without depleting the resources of future generations.
Enriching lives
HBL is a pioneer in the banking sector in Pakistan in developing and implementing a Social and Environmental Management Policy focusing on ensuring robust system risks in line with the International Finance Corporation’s (IFC) Performance Standards. As part of this policy, it has set out some key goals. They will try to achieve net-zero by eliminating all avoidable emissions by 2030. In 2020, the HBL decided not to finance any new coal projects or financing for coal of any kind. In 2021, the Bank stopped financing industries that contribute to deforestation. They are also actively working on reducing their carbon footprint and incorporating LEED/ IFC standards in most of their major office buildings. The iconic HBL Tower in Karachi is LEED-certified; the most widely used green building rating system globally.
In 2019, HBL also signed the Green Investment Principles (GIPs) with China and 27 other global institutions. It includes incorporating seven principles at three levels – strategy, operations, and innovation – for green investments in the Belt and Road Initiative (BRI). These principles are intended to promote environmental friendliness, climate resilience, social inclusiveness, and improved management of environmental and social risks for new investment projects in the BRI in light of the UN SDGs and the Paris Climate Agreement.
Read more: HBL – A ‘Technology Company with a Banking License’ https://www.globalvillagespace.com/hbl- ... g-license/
The ethos of ‘Enriching lives’ is being used to drive their KPIs at the macro level to report impact and sustainability at three levels: the environment, economy, and society. The report identifies programs and other initiatives it is working on within these three areas and across the SDGs – highlighted very neatly and effectively in an impact table. Out of their projects under the economy category – those under financial inclusion touch on eight SDGs; similarly, transforming agriculture touches on six goals. Under the environmental level, their projects in Green investment touch five SDGs, and renewable energy touches four SDGs. One of the key things that HBL’s Impact and Sustainability measurement and management does is that it enables the Bank to optimize programs and actively contribute to protecting the country’s resources.
Steps towards sustainable environment
HBL has set up a Social and Environmental Management System (SEMS) policy that ensures a robust system, which safeguards against credit, liability, and reputational risks in line with the IFC performance standards. This ESG policy is also used to benchmark customers against ESG’s strict criteria. It also made a major effort to align its own internal operations with the SBP’s 2017 green guidelines. It set up a Green Operations Unit in 2018 that has implemented multiple initiatives to reduce the impact of HBL’s operations on the environment while also reducing the cost of the Bank. The initiatives include automating systems, remote monitoring, and process re-engineering. The unit focused on conserving energy and reducing the carbon footprint of the Bank, reducing HBL’s paper consumption, and lessening the Bank’s reliance on fossil fuels/ grid electricity through implementing solar panels in over 170+ locations, among other things.
Building sustainable economy
HBL has quickly moved into the digital realm and has created a tagline for itself as a ‘technology company with a banking license’. Under building a sustainable economy, the report identifies the extensive areas that HBL is working on, including digitalization, financial inclusion, financial literacy programs, SMEs, Development Finance, microfinance, and low-cost housing. The HBL Impact & Sustainability Progress at a glance table highlights how the bank’s financial inclusion projects also touch on the most SDGs.
It understands that the financial inclusion of the population is critical to Pakistan’s economic development and the Bank’s progress. It is spearheading projects to deliver easily accessible, comprehensive banking solutions to all segments of society with a particular focus on solutions for women, the under banked, and the unbanked segments. HBL’s Impact report states, “For us, harnessing digitization for the benefit of society is a conscious decision toward our objective of fostering a technology driven financial ecosystem for the masses in Pakistan.” HBL uses technology to simplify financial transactions by digitizing money flow across individuals and institutions to exponentially increase customer acquisition. Additionally, HBL is supporting Farm-to-Fork ecosystem in the country which aims to make food value chains more equitable, healthier and greener.
During the Covid-19 pandemic, HBL worked with the government to ensure emergency cash distribution to over 14 million households under the Ehsaas Kafalat program. In addition, among other notable programs, the Bank has partnered with various provincial governments to enable transparent, efficient, and quick access to subsidies for farmers. This partnership is now evolving to help target digital subsidies at the time of input purchase by farmers.
Read more: HBL teams up with PAFLA to empower Pakistan’s freelance industry https://www.globalvillagespace.com/hbl- ... -industry/
Walking the talk of sustainable society
HBL, as one of the country’s oldest banks and as part of the Aga Khan Development Network, has a strong sense of belief in the role it can play in nation-building, providing thought leadership for the country and promoting diversity and cultural heritage of the nation. Its dedication to uplifting communities is also evident in its existing and the future increase it has announced in its philanthropic spending commitment to health, education, disaster response, and women empowerment.
HBL prides itself that its Social Governance and Management policies lay the groundwork for the Bank to develop a sustainable financial ecosystem that is people-centric and not just profit-driven. Its walking the talk starts at home with HBL’s commitment to employing 25 percent females in its workforce and creating an accessible work friendly environment in which they can prosper.
It has a diversity council that has 44 percent female representation and is cross-functional; it is mandated to drive HBL’s gender diversity strategy to steer the Bank’s vision. At the time of privatization in 2004, women were only 3 percent of employees; this has increased to more than 20 percent after focused recruitment efforts.
A crucial part of creating a sustainable society is HBL’s work with promoting art and culture in the country, including sponsoring children’s art competitions, holding monthly interactive sessions on art, and having its own art collection by new and contemporary artists throughout its offices. In 2021, HBL supported the restoration and renovation of the Galerie Sadequain at Frere Hall in Karachi, over 30,000 people visited the Ayesha Khalid’s exhibition, enabling it to become a permanent, international standard exhibition space at a public venue.
HBL Foundation – through which a large part of HBL’s philanthropic funding for social development takes place, plays a significant role in the belief in needing a sustainable society. It especially realizes that there is a dire need in the country in the fields of education and health to help improve the lives of communities. The Foundation was created as an irrevocable trust by HBL in 2010 and monitors and evaluates the grants that it provides annually to multiple organizations across Pakistan.
Read more: HBL launches its 9th Prestige Lounge in Karachi https://www.globalvillagespace.com/hbl- ... n-karachi/
HBL is working towards long-term value creation for its shareholders and employees, where value is integrated into its sustainability strategy for communities. HBL Impact and Sustainability report highlights the importance and goals that HBL has and the strategy through which it intends to achieve these, and how we can evaluate its results on this front going forward.
https://www.globalvillagespace.com/hbl- ... he-nation/
Re: Habib Bank Activities - AKFED
HBL faces liability in terror financing case in US, bank says will ‘vigorously’ contest allegations
Dawn.com Published September 29, 2022 Updated about 13 hours ago
Pakistan’s largest bank, Habib Bank Limited (HBL), faces secondary liabilities in a terror financing case in the United States in which the plaintiffs had alleged the bank aided and abetted al-Qaeda terrorism and joined in a conspiracy to launch attacks that killed or injured 370 people in Afghanistan between 2010 and 2019.
The bank faces the liabilities under the Justice Against Sponsors of Terrorism Act as a party that “aids and abets, by knowingly providing substantial assistance, or who conspires with the person who committed such an act of international terrorism”, according to a New York district court order issued on September 28.
However, in a statement issued today, HBL said the allegations were “meritless”, adding that the bank was contesting them fully and vigorously.
“The public record is clear that HBL is unwavering in its commitment to combating the financing of terrorism, and — as has been well documented — its extensive global implementation of anti-money laundering compliance controls has been highly successful and lauded by regulators around the world,” the statement read.
According to the court order, a copy of which is available with Dawn.com, the plaintiffs alleged that the attacks were planned, authoriZed and committed by al-Qaeda, sometimes in conjunction with one or more other groups, including: Lashkar-e-Taiba, Jaish-e-Mohammad, the Afghan Taliban, including the Haqqani Network, and the Tehreek-e-Taliban Pakistan.
Judge Lorna G. Schofield said HBL “placed terrorists or those linked to terrorists on a ‘whitelist’ or ‘good guy list’ of people ostensibly pre-cleared for reduced scrutiny of their transactions [and] engaged in tactics, such as ‘wire-stripping’, that shield the identities of parties to transactions”.
The order stated that the plaintiffs had presented sufficient facts to infer that the bank used its New York branch “to further [al-Qaeda’s] terrorist goals”.
“The complaints give rise to a reasonable inference that defendant knew its customers were integral to al-Qaeda’s overall campaign of terrorism, carried out directly and by proxy. That is sufficient to allege the general awareness element.
“The complaints allege that defendant took deliberate steps to help customers evade international sanctions regimes, and in doing so incurred business risk that ultimately led to defendant’s expulsion from the US. Those allegations are sufficient …,” the order stated.
Judge Schofield said the allegations were sufficient to show that HBL “joined in a conspiracy to commit the attacks”. However, she turned down the plaintiffs’ claims of primary liability because none of the alleged banking services provided by HBL “were themselves acts of international terrorism”.
In its statement, HBL said its motion was successful in two respects: the court dismissed the primary liability claim and narrowed the case substantially.
“The court also stated secondary liabilities will be evaluated following due legal proceedings and no judgement was passed by the court on this matter,” it stated.
“HBL has made investments in management and resources to strengthen its AML and CFT protocols by partnering with global experts in this field. The bank seeks to adhere to the highest standards of compliance with international and country laws and regulations,” it added.
Prior to this, HBL had agreed to pay a fine of $225 million — the largest ever imposed upon a Pakistani bank by regulatory authorities — in 2017 for various violations of New York’s regulatory provisions.
The bank had also agreed to surrender its licence to operate a branch in New York and unwind its operations there. The branch had been operational since 1978.
In a strongly worded release issued at the time, the Department of Financial Services (DFS) of New York State had harshly castigated the bank and added that “DFS will not stand by and let Habib Bank sneak out of the United States without holding it accountable for putting the integrity of the financial services industry and the safety of our nation at risk.”
HBL had become the target of an enforcement action by DFS for 53 separate violations allegedly committed between 2007 and 2017.
https://www.dawn.com/news/1712565/hbl-f ... llegations
Dawn.com Published September 29, 2022 Updated about 13 hours ago
Pakistan’s largest bank, Habib Bank Limited (HBL), faces secondary liabilities in a terror financing case in the United States in which the plaintiffs had alleged the bank aided and abetted al-Qaeda terrorism and joined in a conspiracy to launch attacks that killed or injured 370 people in Afghanistan between 2010 and 2019.
The bank faces the liabilities under the Justice Against Sponsors of Terrorism Act as a party that “aids and abets, by knowingly providing substantial assistance, or who conspires with the person who committed such an act of international terrorism”, according to a New York district court order issued on September 28.
However, in a statement issued today, HBL said the allegations were “meritless”, adding that the bank was contesting them fully and vigorously.
“The public record is clear that HBL is unwavering in its commitment to combating the financing of terrorism, and — as has been well documented — its extensive global implementation of anti-money laundering compliance controls has been highly successful and lauded by regulators around the world,” the statement read.
According to the court order, a copy of which is available with Dawn.com, the plaintiffs alleged that the attacks were planned, authoriZed and committed by al-Qaeda, sometimes in conjunction with one or more other groups, including: Lashkar-e-Taiba, Jaish-e-Mohammad, the Afghan Taliban, including the Haqqani Network, and the Tehreek-e-Taliban Pakistan.
Judge Lorna G. Schofield said HBL “placed terrorists or those linked to terrorists on a ‘whitelist’ or ‘good guy list’ of people ostensibly pre-cleared for reduced scrutiny of their transactions [and] engaged in tactics, such as ‘wire-stripping’, that shield the identities of parties to transactions”.
The order stated that the plaintiffs had presented sufficient facts to infer that the bank used its New York branch “to further [al-Qaeda’s] terrorist goals”.
“The complaints give rise to a reasonable inference that defendant knew its customers were integral to al-Qaeda’s overall campaign of terrorism, carried out directly and by proxy. That is sufficient to allege the general awareness element.
“The complaints allege that defendant took deliberate steps to help customers evade international sanctions regimes, and in doing so incurred business risk that ultimately led to defendant’s expulsion from the US. Those allegations are sufficient …,” the order stated.
Judge Schofield said the allegations were sufficient to show that HBL “joined in a conspiracy to commit the attacks”. However, she turned down the plaintiffs’ claims of primary liability because none of the alleged banking services provided by HBL “were themselves acts of international terrorism”.
In its statement, HBL said its motion was successful in two respects: the court dismissed the primary liability claim and narrowed the case substantially.
“The court also stated secondary liabilities will be evaluated following due legal proceedings and no judgement was passed by the court on this matter,” it stated.
“HBL has made investments in management and resources to strengthen its AML and CFT protocols by partnering with global experts in this field. The bank seeks to adhere to the highest standards of compliance with international and country laws and regulations,” it added.
Prior to this, HBL had agreed to pay a fine of $225 million — the largest ever imposed upon a Pakistani bank by regulatory authorities — in 2017 for various violations of New York’s regulatory provisions.
The bank had also agreed to surrender its licence to operate a branch in New York and unwind its operations there. The branch had been operational since 1978.
In a strongly worded release issued at the time, the Department of Financial Services (DFS) of New York State had harshly castigated the bank and added that “DFS will not stand by and let Habib Bank sneak out of the United States without holding it accountable for putting the integrity of the financial services industry and the safety of our nation at risk.”
HBL had become the target of an enforcement action by DFS for 53 separate violations allegedly committed between 2007 and 2017.
https://www.dawn.com/news/1712565/hbl-f ... llegations
Aga Khan Fund inverst Rs 3.47b into HBL
https://tribune.com.pk/story/2429006/ag ... b-into-hbl
Aga Khan Fund inverst Rs 3.47b into HBL
Marks second buy-back exercise conducted by AKFED in the past three months
Salman Siddiqui August 03, 2023
KARACHI:
The Aga Khan Fund for Economic Development (AKFED), a Switzerland-based organisation holding majority controlling stakes in Habib Bank Limited (HBL), has announced an additional investment of Rs3.47 billion in the bank. This investment will be made through the acquisition of additional shares available for trade at the Pakistan Stock Exchange (PSX).
The Fund is utilising its accumulated dividend income in the country to make this investment, which could not be repatriated to its headquarters abroad due to low foreign exchange reserves in Pakistan. This marks the second buy-back exercise conducted by the Aga Khan Fund in the past three months. Previously, the Fund acquired HBL’s stocks from the retail market (PSX) worth Rs3.53 billion using the same accumulated dividend income.
Stock market investors have responded positively to this new investment decision, causing HBL’s stock to soar by 5.74% to a 14-month high at Rs102.20, with a volume of 18.67 million shares traded at PSX. At the current share price, the majority shareholder could potentially acquire another 2.31% shareholding, equivalent to 33.97 million shares, using the available fund of Rs3.47 billion.
The buy-back trend has been observed among several listed companies at PSX recently, particularly after their share prices declined significantly due to the massive economic slowdown and partial closure of many industrial units. This buy-back approach has been favourable for both company owners and general investors, as share prices are expected to rebound alongside the gradual recovery in economic activities, particularly after Pakistan secured the International Monetary Fund (IMF)’s $3 billion loan programme in June 2023.
According to HBL’s annual report for 2022, AKFED held a 51% stake (748.09 million shares) in the bank in both 2021 and 2022. The shareholding is likely to have increased in 2023 following the first buy-back worth Rs3.53 billion announced in May 2023. In a notification to PSX, HBL’s company secretary stated, “Aga Khan Fund for Economic Development (AKFED) has informed Habib Bank Limited (HBL)…of its intention to acquire additional shares of HBL from the open market by utilising the accumulated dividends that have not been repatriated, amounting to Rs3,472,172,945.”
Regarding the previous buy-back of shares by the Fund, Topline Research commented, “The move comes as the State Bank of Pakistan (SBP) does not allow repatriation of dividends due to the low level of foreign exchange reserves, we think. However, the regulator allows funds to be used within Pakistan to avoid net outflow of US dollars.”
Pakistan’s foreign exchange reserves have improved significantly to a two-month high import cover at $8.2 billion, thanks to the latest inflows from the IMF and friendly countries like Saudi Arabia and the United Arab Emirates (UAE). This is a substantial improvement compared to the less than $3 billion in reserves in the recent past.
While Pakistan has taken measures to strengthen its foreign exchange reserves, foreign investors are yet to be allowed to repatriate profit and dividends to their headquarters. The government has urged foreign investors to reinvest their earnings in the domestic economy to support the country’s economic growth.
Foreign investors had sought clarity from the government on the repatriation of profit and dividend income to their headquarters and proposed various solutions to address the foreign exchange crisis in the country. However, the government’s response on the matter remains unknown.
According to the latest data from the central bank, the overall repatriation of profit and dividends to foreign headquarters by global investors operating in Pakistan slumped by 80% to $331 million in the previous fiscal year ended June 30, 2023, compared to $1.68 billion dispatched in FY22.
Despite the recent economic slowdown, banks operating in Pakistan have continued to register notable growth in their profits, mainly due to significant lending to the cash-strapped government for budgetary support at a historical high interest rate of around 23%.
Furthermore, many banks have earned substantial revenues from the rupee-dollar exchange business as the local currency continues to depreciate against the US dollar amid high demand for the greenback over the past several years.
Published in The Express Tribune, August 3rd, 2023.
Aga Khan Fund inverst Rs 3.47b into HBL
Marks second buy-back exercise conducted by AKFED in the past three months
Salman Siddiqui August 03, 2023
KARACHI:
The Aga Khan Fund for Economic Development (AKFED), a Switzerland-based organisation holding majority controlling stakes in Habib Bank Limited (HBL), has announced an additional investment of Rs3.47 billion in the bank. This investment will be made through the acquisition of additional shares available for trade at the Pakistan Stock Exchange (PSX).
The Fund is utilising its accumulated dividend income in the country to make this investment, which could not be repatriated to its headquarters abroad due to low foreign exchange reserves in Pakistan. This marks the second buy-back exercise conducted by the Aga Khan Fund in the past three months. Previously, the Fund acquired HBL’s stocks from the retail market (PSX) worth Rs3.53 billion using the same accumulated dividend income.
Stock market investors have responded positively to this new investment decision, causing HBL’s stock to soar by 5.74% to a 14-month high at Rs102.20, with a volume of 18.67 million shares traded at PSX. At the current share price, the majority shareholder could potentially acquire another 2.31% shareholding, equivalent to 33.97 million shares, using the available fund of Rs3.47 billion.
The buy-back trend has been observed among several listed companies at PSX recently, particularly after their share prices declined significantly due to the massive economic slowdown and partial closure of many industrial units. This buy-back approach has been favourable for both company owners and general investors, as share prices are expected to rebound alongside the gradual recovery in economic activities, particularly after Pakistan secured the International Monetary Fund (IMF)’s $3 billion loan programme in June 2023.
According to HBL’s annual report for 2022, AKFED held a 51% stake (748.09 million shares) in the bank in both 2021 and 2022. The shareholding is likely to have increased in 2023 following the first buy-back worth Rs3.53 billion announced in May 2023. In a notification to PSX, HBL’s company secretary stated, “Aga Khan Fund for Economic Development (AKFED) has informed Habib Bank Limited (HBL)…of its intention to acquire additional shares of HBL from the open market by utilising the accumulated dividends that have not been repatriated, amounting to Rs3,472,172,945.”
Regarding the previous buy-back of shares by the Fund, Topline Research commented, “The move comes as the State Bank of Pakistan (SBP) does not allow repatriation of dividends due to the low level of foreign exchange reserves, we think. However, the regulator allows funds to be used within Pakistan to avoid net outflow of US dollars.”
Pakistan’s foreign exchange reserves have improved significantly to a two-month high import cover at $8.2 billion, thanks to the latest inflows from the IMF and friendly countries like Saudi Arabia and the United Arab Emirates (UAE). This is a substantial improvement compared to the less than $3 billion in reserves in the recent past.
While Pakistan has taken measures to strengthen its foreign exchange reserves, foreign investors are yet to be allowed to repatriate profit and dividends to their headquarters. The government has urged foreign investors to reinvest their earnings in the domestic economy to support the country’s economic growth.
Foreign investors had sought clarity from the government on the repatriation of profit and dividend income to their headquarters and proposed various solutions to address the foreign exchange crisis in the country. However, the government’s response on the matter remains unknown.
According to the latest data from the central bank, the overall repatriation of profit and dividends to foreign headquarters by global investors operating in Pakistan slumped by 80% to $331 million in the previous fiscal year ended June 30, 2023, compared to $1.68 billion dispatched in FY22.
Despite the recent economic slowdown, banks operating in Pakistan have continued to register notable growth in their profits, mainly due to significant lending to the cash-strapped government for budgetary support at a historical high interest rate of around 23%.
Furthermore, many banks have earned substantial revenues from the rupee-dollar exchange business as the local currency continues to depreciate against the US dollar amid high demand for the greenback over the past several years.
Published in The Express Tribune, August 3rd, 2023.
Aga Khan fund intends to acquire additional shares of HBL worth nearly Rs3.5bn
https://www.brecorder.com/news/40255861 ... rly-rs35bn
Aga Khan fund intends to acquire additional shares of HBL worth nearly Rs3.5bn
BR Web Desk Published August 2, 2023
Habib Bank Limited announced on Wednesday that one of its key sponsors – the Aga Khan Fund for Economic Development (AKFED) – has expressed its intention to purchase additional shares of the bank amounting to nearly Rs3.5 billion from the open market.
The development was shared by HBL in its notice to the Pakistan Stock Exchange (PSX).
“Aga Khan Fund for Economic Development (AKFED) has informed Habib Bank Limited (HBL) vide its letter dated August 2, 2023, of its intention to acquire additional shares of HBL from the open market, by utilizing the accumulated dividends that have not been repatriated, amounting to Rs3,472,172,945,” read the notice.
“The said purchase of HBL shares shall be in accordance with applicable regulatory approvals,” added the notice.
The Aga Khan Fund for Economic Development SA is a Swiss for-profit entity and international development finance institution which invests in countries of East Africa, West Africa, Central Asia, and South Asia.
Back in May, HBL informed its stakeholders that the Aga Khan fund intended to acquire additional shares of the bank worth Rs3,534,747,825 from the open-market.
“This is a part of the ongoing shares buyback trend in the market, sponsors are interested to purchase their own shares amid low valuation in the market,” Sana Tawfik, analyst at Arif Habib Limited told Business Recorder.
The market expert said that the move was expected, and it reflects the confidence of the sponsor on the company.
“Fundamentally speaking, HBL results were also strong,” said Tawfik, while adding that the trend of buybacks would continue across the board.
The share price of HBL, which was around Rs96 earlier in the day, saw a massive jump to trade at Rs102.40 following the announcement in the afternoon, an increase of Rs5.75 or 5.95%.
HBL declared a consolidated profit before tax (PBT) of Rs51.5 billion for the first half of 2023, nearly 50% higher than the same period of the previous year.
The PBT of Rs30 billion for the second quarter of 2023 (April-June) was the highest in HBL’s history based on performance of its core business lines.
Aga Khan fund intends to acquire additional shares of HBL worth nearly Rs3.5bn
BR Web Desk Published August 2, 2023
Habib Bank Limited announced on Wednesday that one of its key sponsors – the Aga Khan Fund for Economic Development (AKFED) – has expressed its intention to purchase additional shares of the bank amounting to nearly Rs3.5 billion from the open market.
The development was shared by HBL in its notice to the Pakistan Stock Exchange (PSX).
“Aga Khan Fund for Economic Development (AKFED) has informed Habib Bank Limited (HBL) vide its letter dated August 2, 2023, of its intention to acquire additional shares of HBL from the open market, by utilizing the accumulated dividends that have not been repatriated, amounting to Rs3,472,172,945,” read the notice.
“The said purchase of HBL shares shall be in accordance with applicable regulatory approvals,” added the notice.
The Aga Khan Fund for Economic Development SA is a Swiss for-profit entity and international development finance institution which invests in countries of East Africa, West Africa, Central Asia, and South Asia.
Back in May, HBL informed its stakeholders that the Aga Khan fund intended to acquire additional shares of the bank worth Rs3,534,747,825 from the open-market.
“This is a part of the ongoing shares buyback trend in the market, sponsors are interested to purchase their own shares amid low valuation in the market,” Sana Tawfik, analyst at Arif Habib Limited told Business Recorder.
The market expert said that the move was expected, and it reflects the confidence of the sponsor on the company.
“Fundamentally speaking, HBL results were also strong,” said Tawfik, while adding that the trend of buybacks would continue across the board.
The share price of HBL, which was around Rs96 earlier in the day, saw a massive jump to trade at Rs102.40 following the announcement in the afternoon, an increase of Rs5.75 or 5.95%.
HBL declared a consolidated profit before tax (PBT) of Rs51.5 billion for the first half of 2023, nearly 50% higher than the same period of the previous year.
The PBT of Rs30 billion for the second quarter of 2023 (April-June) was the highest in HBL’s history based on performance of its core business lines.
Re: Habib Bank Activities - AKFED
https://propakistani.pk/2023/08/02/aga- ... 7-billion/
Aga Khan Fund to Acquire Additional Shares of HBL Worth Rs. 3.47 Billion
By ProPK Staff | Published Aug 2, 2023
Habib Bank Limited (HBL) announced on Wednesday that the Aga Khan Fund for Economic Development (AKFED) has expressed its intention to purchase additional shares of the bank amounting to Rs. 3.47 billion from the open market.
In a notice to the Pakistan Stock Exchange (PSX), the bank said AKFED has informed the bank of its intention to acquire additional shares of HBL from the open market, by utilizing the accumulated dividends that have not been repatriated, amounting to Rs. 3.472 billion.
The notice said that the said purchase of HBL shares will be in accordance with applicable regulatory approvals.
It is pertinent to mention here that back in May, HBL announced that its sponsor, the Aga Khan Fund for Economic Development, has shown its interest to buy additional shares in the bank against an investment of Rs. 3.53 billion.
AKFED is a for-profit international development agency that seeks to create economic capacity and opportunity in specific regions of the developing world. Its financial service institutions, some of which date back nearly 70 years, include commercial banks, microfinance banks, insurance companies, and property development and management companies in nine countries, some of which are listed on local stock exchanges.
AKFED operates as a network of affiliates, with more than 90 separate project companies employing over 55,000 people. In 2021, it had group revenues of approximately $4 billion.
HBL declared a consolidated profit after tax (PAT) of Rs. 26.33 billion for the half year ended June 30, 2023, up 117.5 percent YoY as compared to
Aga Khan Fund to Acquire Additional Shares of HBL Worth Rs. 3.47 Billion
By ProPK Staff | Published Aug 2, 2023
Habib Bank Limited (HBL) announced on Wednesday that the Aga Khan Fund for Economic Development (AKFED) has expressed its intention to purchase additional shares of the bank amounting to Rs. 3.47 billion from the open market.
In a notice to the Pakistan Stock Exchange (PSX), the bank said AKFED has informed the bank of its intention to acquire additional shares of HBL from the open market, by utilizing the accumulated dividends that have not been repatriated, amounting to Rs. 3.472 billion.
The notice said that the said purchase of HBL shares will be in accordance with applicable regulatory approvals.
It is pertinent to mention here that back in May, HBL announced that its sponsor, the Aga Khan Fund for Economic Development, has shown its interest to buy additional shares in the bank against an investment of Rs. 3.53 billion.
AKFED is a for-profit international development agency that seeks to create economic capacity and opportunity in specific regions of the developing world. Its financial service institutions, some of which date back nearly 70 years, include commercial banks, microfinance banks, insurance companies, and property development and management companies in nine countries, some of which are listed on local stock exchanges.
AKFED operates as a network of affiliates, with more than 90 separate project companies employing over 55,000 people. In 2021, it had group revenues of approximately $4 billion.
HBL declared a consolidated profit after tax (PAT) of Rs. 26.33 billion for the half year ended June 30, 2023, up 117.5 percent YoY as compared to