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Tag: Habib Bank Limited

  • Habib Bank pays penalty of Rs42.2 million to SBP

    Habib Bank pays penalty of Rs42.2 million to SBP

    KARACHI: Habib Bank Limited (HBL) has paid monetary penalty of Rs42.2 million to State Bank of Pakistan (SBP) for violation of various regulatory provisions.

    According to HBL it paid Rs42.2 million during first quarter (January – March) of 2021 against penalties imposed by the SBP. The bank had paid around Rs231.6 million as monetary penalties to SBP in the same quarter of the last year.

    A total amount of Rs42.23 million was paid by the bank as penalties, including those imposed by other regulatory bodies. The bank had paid around 232.19 million as total penalty for the same quarter of the last year.

    The bank had paid an amount of Rs320.79 million as penalty for various regulatory violations during the year ended December 31, 2020.

    For the year ended December 31, 2020, the bank paid the amount of Rs320.79 million as penalties for violation of various regulations.

    However, the payment of penal amount reduced by 33 percent when compared with Rs480.56 million paid in the preceding year.

    The bank paid an amount of Rs296 million against fine imposed by the SBP for the year ended December 31, 2020. The latest amount of monetary penalty has been reduced when compared with Rs476 million that was imposed by the SBP on the bank during the preceding year.

  • HBL declares 108 percent growth in quarterly profit

    HBL declares 108 percent growth in quarterly profit

    KARACHI: Habib Bank Limited (HBL) on Tuesday announced 108 percent increase in profit for the quarter ended March 31, 2021. The profit after tax of the bank increased to Rs8.56 billion during the first quarter (January – March) 2021 from Rs4.11 billion in the same quarter of the last year.

    Analysts at Insight Research said that the results of the bank were above expectation.

    “The result is above our expectation of Rs4.3/share as net interest income and non-markup income came in higher from our expectations. The result is also accompanied by a cash dividend of Rs1.75/share,” they said.

    Net interest income (NII) increased by 16 percent/4 percent YoY/QoQ to clocked-in Rs32.4 billion, possibly due to lagged impact of repricing and balance sheet expansion. However, we await detailed account for further clarity in this regard.

    Non-Markup income increased by 42 percent/26 percent YoY/QoQ to clocked-in at Rs8.2 billion. This is primarily led by a higher fee income which increased by 25 percent YoY, while recovery of income in FX operations and derivatives further fueled non-markup income.

    Bank has booked provision of Rs1.9 billion against a provision of Rs0.62 billion booked in SPLY. To note, HBL has booked hefty provisioning in both general and specific categories during CY20 (Rs12.2 billion).

    Operating expenses witnessed a contraction of 7 percent YoY, to clocked-in at Rs24.2 billion, attributable to a reduction in business transformation cost.

    Effective taxation remained at 41 percent during the quarter as compared to 42 percent in SPLY.  

  • HBL to acquire consumer portfolio of SilkBank

    HBL to acquire consumer portfolio of SilkBank

    KARACHI: Habib Bank Limited (HBL) has shown interest to acquire consumer portfolio of SilkBank Limited, according to a statement issued on Thursday.

    An information shared by the SilkBank to the Pakistan Stock Exchange (PSX) revealed that HBL had requested SilkBank Limited to provide its concurrence to HBL to apply to State Bank of Pakistan (SBP) to proceed with the due diligence of the Consumer Portfolio of SilkBank Limited comprising of credit cards, running finance and personal installment loans in order to explore the possibility of HBL’s potential interest in the same.

    The Board of Directors of the SilkBank Limited, in its meeting held on April 07, 2021 has accorded in principle approval, for the same.

    The SilkBank further informed that M/s. Fauji foundation will not be proceeding with the due diligence process of SilkBank Limited, in pursuance of its application in this regard.

  • HBL approves Rs4bn investment in First MicroFinanceBank

    HBL approves Rs4bn investment in First MicroFinanceBank

    KARACHI: The Habib Bank Limited (HBL) to invest Rs4 billion in the First MicroFinanceBank Ltd. (FMFB) over the next three years, according to a statement issued on Monday.

    The board of directors (BOD) of HBL approved at the Annual General Meeting (AGM) authorized investment in the FMFB of up to Rs4 billion over the next three years to help FMFB to maintain a stronger capital base and provide sufficient headroom in its capital adequacy ratio (CAR) for ongoing business expansion and growth plans. However, to the investment is subject to the approval of the State Bank of Pakistan (SBP).

    The AGM also approved payment of final cash dividend of Rs3 per share i.e. 30 percent for the year ended December 31.2020, as recommended by the BOD to shareholders as at close of business on March 19, 2021, which is in addition to the 12.5 percent interim cash dividend i.e. Rs1.25 per share already paid.

  • Habib Bank pays Rs320.79 million as penalties

    Habib Bank pays Rs320.79 million as penalties

    KARACHI: Habib Bank Limited (HBL) has paid an amount of Rs320.79 million as penalty for various regulatory violations during the year ended December 31, 2020.

    According to financial results released by the bank for the year ended December 31, 2020, the bank paid the amount of Rs320.79 million as penalties for violation of various regulations.

    However, the payment of penal amount reduced by 33 percent when compared with Rs480.56 million paid in the preceding year.

    According to details the bank paid an amount of Rs296 million against fine imposed by the State Bank of Pakistan (SBP) for the year ended December 31, 2020. The latest amount of monetary penalty has been reduced when compared with Rs476 million that was imposed by the SBP on the bank during the preceding year.

    The fall in penal amount shows the bank has strengthened inter controls related to know your customer (KYC) and transactions violating other regulatory provisions.

    The bank has also paid penal amount to the tune of Rs24.37 million as fine to other regulatory bodies during the year ended December 31, 2020 as compared with an amount of Rs3.9 million paid during the preceding year.

  • Habib Bank tops in customers complaints list

    Habib Bank tops in customers complaints list

    KARACHI: Habib Bank Limited (HBL) has topped in failing to satisfy customers with the services as the highest number of complaints were filed against the bank at the Wafaqi Mohtasib (Ombudsman) Pakistan.

    The annual report for the year 2020 issued by the office of Wafaqi Mohtasib last week revealed that the highest number of complaints against any bank was received against HBL, which is 23.37 percent of the total complaints received during the year.

    The office of the Wafaqi Mohtasib received 22,750 complaints during the year. The banking customers lodged around 5,317 complaints against HBL during the year.

    The banking customers have expressed more dissatisfaction during the current year as the percentage of complaints lodged against the bank out of the total complaints increased.

    The Banking Mohtasib Pakistan received a sum of 14,587 complaints against all banks during 2019. While in the same year the complaints lodged against the HBL were 2,511 which was 17.21 percent of the total complaints.

    Following table shows number of complaints received against each bank during the year under review. The complaints included received at Banking Mohtasib Secretariat and Prime Minister Portal:

    S.No.Bank NameNo. of complaints
    01Habib Bank Limited5,317
    02United Bank Limited3,098
    03MCB Bank Limited1,870
    04Allied Bank Limited1,539
    05Bank Alfalah Limited1,267
    06National Bank of Pakistan821
    07Faysal Bank Limited802
    08The Bank of Punjab759
    09Meezan Bank Limited759
    10JS Bank Limited665
    11Silk Bank Limited647
    12Standard Chartered Bank (Pakistan) Limited548
    13Askari Bank Limited413
    14Bank Al Habib Limited388
    15Bank Islami Pakistan Limited190
    16Soneri Bank Limited164
    17Dubai Islamic Bank Pakistan Limited162
    18Zarai Taraqiati Bank Limited120
    19Habib Metropolitan Bank Limited105
    20The Bank of Khyber85
    21Summit Bank Limited65
    22Albaraka Bank (Pakistan) Limited59
    23Sindh Bank48
    24The Punjab Provincial Cooperative Bank Limited37
    25Samba Bank Limited21
    26First Women Bank Limited8
    27SME Bank Limited3
    28The Bank of Tokyo – Mitsubishi UFG Ltd1
    29Institutions other than banks2,789
     Total22,750
  • Habib Bank posts 100 percent growth in annual profit

    Habib Bank posts 100 percent growth in annual profit

    KARACHI: Habib Bank Limited on Wednesday declared 100 percent growth in net profit for the year ended December 31, 2020.

    The bank recorded after tax profit of Rs31 billion for the year 2020 as compared with Rs15.5 billion in the preceding year.

    The healthy annual profit can be attributed to gain on securities of Rs7 billion in the year 2020 as compared with loss in securities of Rs2.65 billion in the preceding year.

    Banking experts said that high participation of banks in market treasury bills and Pakistan Investment Bonds resulted in significant yields in profits.

    According to the financial results the net mark-up and interest income of the banks increased to Rs130 billion during the year under review as compared with Rs101 billion in the preceding year.

    Total income of the banks increased to Rs160 billion for the year 2020 as compared with Rs125.5 billion in the preceding year.

    Operating expenses of the banks was at Rs94 billion for the year 2020 as compared with Rs92.23 billion in the preceding year.

    The bank declared earnings per share increased to Rs21.06 for the year 2020 as compared with Rs10.45 in the preceding year.

    A final cash dividend for the year ended December 31, 2020 at Rs3 per share i.e. 30 percent. This is in addition to interim dividends already paid at Rs1.25 per share i.e. 12.5 percent.

  • SBP imposes penalty of Rs12.8 million on HBL

    SBP imposes penalty of Rs12.8 million on HBL

    KARACHI: State Bank of Pakistan (SBP) has imposed monetary penalty of Rs12.8 million on Habib Bank Limited (HBL) for procedural violations in the area of Customers Due Diligence (CDD) and Know Your Customer (KYC).

    The SBP on Tuesday said that it had imposed monetary penalty on HBL under significant enforcement actions during January 2020.

    The central bank directed HBL to improve the areas of CDD and KYC.

    The SBP imposed Rs219.138 million as penalty on five banks during the month of December 2019 for violating mainly regulations related to foreign trade operations, Customers Due Diligence (CDD) and Know Your Customer (KYC).

    The SBP from July 2019 started public disclosure of penal action against banks. “Enforcement actions are an integral part of regulatory regime which involves imposition of monetary penalties and other actions against institutions and individuals for violations of laws, rules, regulations, guidelines or directives issued by SBP from time to time,” according to a circular issued by the central bank.

    In order to bring more transparency and strengthen market discipline, SBP has decided to publicly disclose significant enforcement actions

    With the latest penal action the total amount of penalty during first seven months (July – January) 2019/2020 increased to Rs1,581.8 million.

  • HBL plans network expansion in China

    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.

  • Ufone, Habib Bank sign agreement for trade financing in Chinese currency

    Ufone, Habib Bank sign agreement for trade financing in Chinese currency

    KARACHI: Pak Telecom Mobile Limited – Ufone and Habib Bank Limited (HBL) have signed a landmark agreement, through which HBL has extended a bilateral Trade Finance in Chinese Yuan (RMB/CNY) for the import of cellular network equipment through Huawei Technologies Co Ltd, a statement said on Friday.

    The Landmark agreement is part of one of the largest RMB/CNY contracts in the history of Pakistan between Ufone and Huawei Technologies Co Ltd., and it would furthermore be a breakthrough in the banking industry of the country.

    The trade deal under this new mode of transaction will set a precedent for different sectors and corporations in both friendly countries—China and Pakistan—which plan to take their working relationship to the next level through this currency swap agreement.

    This transaction would also ease off the pressure of import bills in terms of dollars for Pakistan.

    The business deal being carried out by Ufone, Huawei and HBL will be the first of its kind in the telecom sector, and will also pave the way for various other mobile operators and traders in Pakistan to expand their businesses through this mode of trade finance facility.

    The agreement was signed by Mohammad Nadeem Khan, Chief Financial Officer PTCL & Ufone and Farhan Talib, Head Corporate and Investment Banking, HBL.

    The ceremony was witnessed by Rashid Khan, President and CEO PTCL & Ufone, Muhammad Aurangzeb, President & CEO HBL, Chi Linchun, CEO Huawei Pakistan and Yang Yougui, Regional President Huawei Middle East.