HBL plans network expansion in China

KARACHI: Habib Bank Limited (HBL) has planned to expand its network in China, according to corporate briefing on Tuesday.

According to Topline Research, the HBL is planning to expand its network in China. Talks are in advanced stages of giving HBL rep office a branch status, additionally One-Belt One-Road (OBOR) based countries are to be assisted by HBL where Chinese presence is limited.

Key theme for the bank is focused on key real sectors with segments like Agri financing and SME finance.

In 2020 the bank is expected to move away from one off costs and move towards a normalized cost to income ratio with a long term target of sub 50 percent.

Customer base to cross 20 million in the coming year versus 16 million currently, translating into higher fee income going forward.

Current account are targeted to cross the one trillion mark, keeping cost of deposit low.

The banks’ focus is on innovation through technology.

The Bank focuses on “STARS” strategy encompassing:

• Sustaining Success (maintain position in deposits, IB, treasury and rural banking)

• Turnaround (revitalization of international division and home remittance)

• Acceleration (consumer finance)

• Realignment (commercial banking fis and Islamic banking)

• Startups (emphasis on branchless banking and digital banking)

Key Initiatives of the banks are 1) branchless banking through Konnect aimed to capture a new market through smartphones, 2) Power sector prowess through various IB based transactions and 3) Launch of Panda bonds.

Open position secured to pay New York penalty is winding down by 25-30 percent by end of 2019.

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