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Author: Faisal Shahnawaz

  • Habib Bank posts Rs35.51 billion annual profit

    Habib Bank posts Rs35.51 billion annual profit

    Habib Bank Limited (HBL) held its conference call on Friday to discuss financial performance and provide its future outlook onwards. HBL posted a profit after tax of Rs 35.51 billion (EPS: Rs 23.9) in 2021 as opposed to Rs 30.91 billion (EPS: Rs 21.1) in the same period last year, up by 15 per centYoY. It was the best ever result in the history of HBL.

    Along with the result, the bank announced a final cash dividend of Rs 2.25 per share taking the full payout to Rs 7.5 per share.

    Analysts at KASB Research have an outperform rating on HBL based on Justified P/B with a target price of Rs 175 per share. The stock offers a dividend yield of 7.4 per cent and is currently trading at a one year forward P/Bv of 0.57x.

    READ MORE: Habib Bank declares Rs26.44 billion 9-month profit

    As per the management, three key pillars of mid to long term strategy include accelerating Pakistan’s growth and development, shaping financial industry and improving agriculture sector’s productivity. The bank also aims to step up SMEs, branchless banking and CPEC based infrastructure growth in country.

    The bank’s digital footprint is increasing day by day, the highest in the industry. Konnect accounts are up by 1.3x 7.1 million.

    The bank crossed Rs 100.0 billion in consumer loans. Consumer financing grew by 31 per cent reaching Rs 102.8 billion driven by growth in auto and personal loans.

    READ MORE: Habib Bank, Meezan Bank directed to pay fraud victims

    Home remittances for the bank also increased by 29 per cent YoY in 2021 to USD 2.74 billion and the market share clocked in at 8.8 per cent. The bank aims to take the market share to double digits in 2022.

    Domestic deposits noted a growth of 19 per cent over December 2021 and the banks’ market share improved to 14.4 per cent. Meanwhile, international deposits increased by 16 per cent to USD 1.9 billion. CA crossed Rs 1.0 trillion.

    Domestic advances expanded by 20 per cent over December 2020 to Rs 1.2 trillion and international loans increased by 24 per cent.

    READ MORE: Habib Bank pays penalty of Rs42.2 million to SBP

    Infection ratio clocked in at 5.1 per cent as opposed to 6.3 per cent in December 2020 and the bank’s coverage stood at 104 per cent.

    ROE came at 14.4 per cent and ROA stayed at 0.9 per cent in December 2021.

    The bank intends to expand Islamic banking by adding 30/40 new branches in different new cities taking the tally to 250-260 by December 2022.

  • Customers’ exchange rates on February 25, 2022

    Customers’ exchange rates on February 25, 2022

    KARACHI: The State Bank of Pakistan (SBP) on Friday issued customers’ exchange rates for February 25, 2022. The exchange rate is on the basis of weighted average rates of commercial banks.

    The SBP said the data is compiled and disseminated for information only. These exchange rates are estimates that quoted by various commercial banks to their clients.

    The banks provide their indicative exchange rates for commercial transactions with customers.

    CURRENCYBUYINGSELLING
    AED48.229148.3401
    AUD127.4254127.7125
    CAD138.4768138.7960
    CHF191.7645192.2155
    CNY28.038528.1011
    EUR198.6227199.0920
    GBP237.7227238.2703
    JPY1.53641.5400
    SAR47.189947.3003
    USD177.0187177.4415
    Customers’ exchange rates on February 24, 2022
  • National Bank under grip of regulatory violations

    National Bank under grip of regulatory violations

    National Bank of Pakistan in a notice sent to Pakistan Stock Exchange (PSX) disclosed that it reached an agreement with US regulators of NBP’s New York branch with fines of $55 million arising due to historical compliance weakness and delays in making compliance related enhancements.

    However, there were no findings of improper transactions or willful conduct as per the notice.

    Latest press release by U.S Department of Financial Services stated: “The National Bank of Pakistan allowed serious compliance deficiencies in its New York branch to persist for years despite repeated regulatory warnings. Foreign banks that enjoy the privilege of operating in New York have an obligation to maintain effective controls, and the Department will continue to promote financial transparency and take action to protect the global financial system when those obligations are not met”.

    READ MORE: US central bank imposes $20.4 million penalty on NBP

    Following examinations conducted by the Department and the Federal Reserve Bank of New York in 2014 and 2015, NBP’s New York branch was found to have inadequate Bank Secrecy/Anti-money compliance programs.

    As a result, enforcement action against NBP was taken in 2016 where NBP agreed to improve compliance deficiencies which later on it failed to do so. As a result, the bank will now be subject to $35 million penalty in addition to certain deliverables for the improvement in its compliance program.

    READ MORE: NBP lends Rs18.8bn in Hascol’s Rs54bn scam

    In addition to the fine by U.S Department of Financial Services, Federal Reserve Board also imposed $20.4million penalty against NBP on anti-money laundering violations totaling penalty to $55million which translates into Rs9.7billion (Rs4.6/share). In 9M2021, the bank has so far reported earnings of Rs25billion.

    Analysts at Topline Securities said that previously HBL also faced a similar fine in 2017 where the U.S regulators initially imposed a penalty of US$630million on HBL on non-compliance of Anti-money laundering laws, which was later revised down to US$225million.

    NBP is also faced with a pending pension liability case with potential liabilities of over Rs70 billion under which the company had filed a review petition in Supreme Court of Pakistan where further judgement is still awaited. The bank due to the aforementioned reason has skipped dividends since 2017, we believe.

  • US central bank imposes $20.4 million penalty on NBP

    US central bank imposes $20.4 million penalty on NBP

    KARACHI: The central bank of the United States on Thursday imposed a monetary penalty of $20.4 million on New York branch of Pakistan’s largest public sector bank for violating anti-money laundering laws.

    A statement issued by the Federal Reserve Board, the US central bank, has announced a $20.4 million penalty against the National Bank of Pakistan (NBP) for anti-money laundering violations.

    READ MORE: NBP lends Rs18.8bn in Hascol’s Rs54bn scam

    “The Board will also require the firm to improve its anti-money laundering program,” it added.

    As detailed in the consent cease and desist order against the NBP, the firm’s U.S. banking operations did not maintain an effective risk management program or controls sufficient to comply with anti-money laundering laws.

    The Board’s action is in conjunction with an action by the New York State Department of Financial Services, according to the statement.

    READ MORE: NBP directed to pay Rs0.5 million to fraud victim

    The board of governors of the Federal Reserve System directed the NBP to improve corporate governance and management oversight. The National Bank of Pakistan and its New York Branch have been asked to jointly submit a written plan to enhance oversight. The plan shall provide for a sustainable governance framework.

    READ MORE: No disruption in transactions post cyber-attack on NBP

    It is further directed that within 60 days of the order, the bank and the bank branch shall jointly submit a written revised Bank Secrecy Act (BSA) / Anti-Money Laundering (AML) compliance program for the branch that is acceptable to the Reserve Bank.

    Furthermore, the bank has been advised to submit a written revised customer due diligence program acceptable to the Reserve Bank.

    READ MORE: NBP announces Rs17.04 billion as half year profit

  • FBR assures Customs agents of resolving issues

    FBR assures Customs agents of resolving issues

    Dr. Muhammad Ashfaq Ahmed, Chairman of the Federal Board of Revenue (FBR), assured a delegation of customs agents of resolving pertinent issues related to imports and exports.

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  • SBP issues KIBOR rates on February 24, 2022

    SBP issues KIBOR rates on February 24, 2022

    KARACHI: State Bank of Pakistan (SBP) on Thursday issued the Karachi Interbank Offered Rates (KIBOR) as of February 24, 2022.

    Following are the latest KIBOR rates:

     TenorBIDOFFER
    1 – Week9.7110.21
    2 – Week9.7810.28
    1 – Month9.8710.37
    3 – Month10.3510.60
    6 – Month10.7410.99
    9 – Month10.7911.29
    1 – Year10.8511.35
    SBP issues KIBOR rates on February 23, 2022
  • Customers’ exchange rates on February 24, 2022

    Customers’ exchange rates on February 24, 2022

    Karachi, February 24, 2022: The State Bank of Pakistan (SBP) has issued the official exchange rates for February 24, 2022, offering insights into currency values against the Pakistani Rupee.

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  • Pakistan stocks shed 1,302 points on Russia-Ukraine war

    Pakistan stocks shed 1,302 points on Russia-Ukraine war

    KARACHI: Pakistan stocks fell by 1,302 points on Thursday owing to war of aggression between Ukraine and Russia.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended at 43,831 points from previous day’s closing of 45,133 points, showing a decline of 1,302 points.

    READ MORE: Equity market gains 121 points in volatile trading

    Analysts at Topline Securities said that Pakistan equities witnessed blood bath today as benchmark KSE-100 Index settled at 43,831 level (down 2.89 per cent).

    Anticipation of “War of aggression” between Ukraine and Russia led the market to open sideways where market make an intraday low of 1,341 points.

    READ MORE: Stocks plunge 351 points on high international oil prices

    Major negativity in today’s trading session came from HBL, LUCK, SYS, TRG and ENGRO cumulatively dented the Index by 381 points.

    On the results front, HBL announced its 4Q2021 earnings per share at Rs5.7 along with dividend par share – Rs2.25.

    READ MORE: Equities shed 313 points in lackluster trading

    Traded volume and value for the day increased by 87 per cent and 28 per cent on a DoD basis to 349 million shares and Rs8.74 billion, respectively. FLYNGR1 was today`s volume leader with 38.41 million shares exchanging hands.

    READ MORE: Weekly Review: positive sentiments likely on PM Moscow visit

  • PKR slides 23 paisas to dollar on Russia-Ukraine war

    PKR slides 23 paisas to dollar on Russia-Ukraine war

    KARACHI: The Pakistan Rupee (PKR) witnessed a decline of 23 paisas against the US Dollar on Thursday, succumbing to the pressures of soaring international oil prices triggered by Russia’s military actions in Ukraine.

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