Company Presentation
September 2015
Pakistan’s No. 1 commercial bank
# 1 bank in Pakistan by(1):
#1
Assets (bn)
International footprint
PKR 2,090
(US$ 20.0)
United
Kingdom
Netherlands
Belgium
France
#1
Deposits (bn)
PKR 1,603
(US$ 15.4)
Kyrgyz Republic
Switzerland
United States
of America
Turkey
Afghanistan
Lebanon
China
Iran
Bahrain
Nepal
UAE
Oman
Net profit (mn)
- Half year
#1
PKR17,156
(US$164)
India Bangladesh
Hong Kong
Sri Lanka
Uganda
Maldives
Kenya
Burundi
Singapore
Tanzania
Seychelles
#1
# of Domestic
Branches
1,624
# of ATMs
1,876
Mauritius
Head Office and Domestic Branch Network
#1
Branch
Subsidiary
#1
#1
# of Customers
Market
capitalization (bn)

Related Entity
9 million
approx.
PKR 311
(US$ 3.0)
HBL maintains a AAA/A-1+ rating (JCRVIS)(2) with a stable outlook
Representative office

One of the largest banking networks in South Asia

Overseas coverage in 28 countries

Network of 64 international branches (including branches of subsidiaries)

Presence in key financial hubs; London, New York, Brussels, Singapore,
Dubai and Hong Kong

Positioned as a regional player to increase market share in

Track record of 75 years
− Remittances

Universal banking model across financial
services including asset management and
insurance segments
− Trade finance
Note:
(1)
(2)
Based on US$1.00: PKR 104.36
As of 30 June 2015 except
no. of branches, ATMs & market capitalization as of Sep 15, 2015
Japan Credit Rating Agency - Vital Information Services.
− Investment banking
− Islamic banking
1
Pakistan’s banking sector today
Sector overview
The five largest banks in Pakistan by total assets(1)

(US$bn)
Pakistan has a total of 44 banks including Government Owned Banks,
Privatized Banks, Development Financial Institutions, Private Banks and
Foreign Banks
20.0

Since 1991, 4 of the top 5 banks (HBL, UBL, MCB, and ABL) in Pakistan
have been privatized

State Bank of Pakistan (“SBP”), the main regulatory body of Pakistan
banks, is generally viewed as one of the most prudent regulators in the
region

All banks in Pakistan are currently under transitional Basel III regime

A strong public central credit information bureau and four private credit
bureaus allow for effective credit origination and monitoring
Privatisation of Pakistan banks
15.2
13.2
10.3
HBL
NBP
UBL
MCB
8.8
ABL
One of the lowest bank penetrations offers room for growth
Divestments by the GoP of holdings in Pakistan banks
40
30
Sale date
Apr 2015
Jun 2014
Dec 2014
% stake sold
41.5%
19.8%
10.1%
Proceeds raised (US$mn)
1,010
388
143
20
Secondary Public offering of HBL

Secondary sale of HBL shares by the GoP was the largest ever equity offering
in Asian Frontier Markets

Oversubscribed by 1.6 times at the final offer price

76% of the offering size allocated to foreign investors

CDC and IFC came in as “anchor” investors

Many major global institutional investors participated, taking a >1% stake
(1)
0
Japan
New Zealand
Australia
Hong Kong
Brunei
Taiwan
Malaysia
Samoa
S. Korea
Sri Lanka
Bhutan
Thailand
India
Fiji
Singapore
Indonesia
Pakistan
Nepal
Philippines
Bangladesh
China
Kiribati
Timor-Leste
Cambodia
Vietnam
Laos
Afghanistan
Papua N.G.
Myanmar
10
Source: Business Monitor
Note: Selected Asian countries only
Based on 30 June 2015 financials
2
HBL – the foundation of Pakistan’s financial
sector
Corporate milestones
1941
1947
1951
Incorporated in Bombay
Current shareholders(1)
Institutional and retail
investors, 40.9%
Aga Khan Fund for
Economic Development
(“AKFED”), 51.0%
Established operations in Pakistan and moved Head
Office to Karachi
IFC, 3.1%
Established first international branch in Sri Lanka
CDC, 5%
Major awards & innovations
Major awards
1972
1974
2004
2007
2012
(1)
Built Habib Bank Plaza, which was commissioned to
commemorate the Bank’s 25th anniversary
Nationalized
Majority control acquired by AKFED
Public listing on the Stock Exchanges
First Pakistani bank to achieve PKR1tn in deposits
Data as of 30 June 2015.
Best Bank in
Pakistan
2014
Bank of the Year
Pakistan
2014
Best Trade
Finance Bank
Pakistan
2014
Best Bank in
Pakistan
2013
Safest Bank in
Pakistan
2014
Best Trade
Finance Provider
Pakistan
2014
No.1 FX Bank in
Pakistan
2013
Best Retail Bank
in Pakistan
2013
Innovations
Products tailored towards
women in cooperation with
GBA, IFC and Westpac
Products tailored towards
youth to expand services
to the underbanked
3
Universal business model
Corporate &
Investment
Banking
Branch Banking



Largest branch
network in
Pakistan of
1,624 branches
Representing
14% of total
bank branches
as at Dec 31,
2014
Share of 20%
of total bank
accounts in
Pakistan as at
Dec 31, 2014


Corporate
Banking Group
offers both
funded and nonfunded products
Investment
banking offers
advisory, equity
capital markets,
project finance
and
infrastructure
advisory,
syndication and
debt capital
markets
International
Banking
Treasury

Fixed income

Equity

Foreign
exchange

Proprietary
trading


International
network of 64
branches in 28
countries
International
operations
managed via
regional hubs:
- Europe, Middle
East & Americas
- Asia & Africa
Financial
Institutions &
Global Trade
Services
Payment
Services Group

Branchless
banking

Employee
banking

Alternate
delivery
channels (ATM
and CDM)

Internet banking

Cash
management

Debit cards

POS and IPG


Relationship
management
with both
domestic and
international
financial
institutions
Provides trade
finance, cash
management,
treasury,
bilateral loans
and nostro
accounts
Other
businesses
Islamic Banking

Sharia
compliant
product offering

Distributed
through Islamic
windows in
conventional
branches and
43 dedicated
Islamic banking
branches

Global
remittances –
serving remitters
and their
beneficiaries
through a range
of products and
solutions

Wholly owned
subsidiary

7 mutual funds

2 pension funds

Insurance
presence via
associate
companies
4
Visionary and accomplished Board
Chairman
President & CEO
Sultan Ali Allana
Chairman



Mr. Sultan Ali Allana has been Chairman
of the Board of Directors of HBL since
February 2004. He has over 30 years of
experience in the financial and banking
industry
He also serves on the Boards of The Aga
Khan Fund for Economic Development,
Tourism Promotion Services Pakistan Ltd,
Jubilee Holdings Ltd (East Africa), Jubilee
Life Insurance Company Ltd and Industrial
Promotion Services (Pakistan) Limited.
Directors
Nauman K Dar
President & CEO
Sajid Zahid
Director

Mr. Nauman K Dar, President & CEO of
Habib Bank Ltd, is a banker with over 32
years of banking experience

Mr. Sajid Zahid is a Barrister with over 39
years experience in Corporate and
Commercial Law.

He also serves as Chairman of Habibsons
Bank Ltd, UK, Chairman of Habib Finance
International Ltd, Hong Kong and
Chairman of Habib Allied Holding Limited

He is Joint Senior Partner at Orr, Dignam
& Co.

Mr. Zahid has previously served as a
Director on the Boards of various
companies including Pakistan Petroleum
Limited.

In the past Mr. Dar has also held senior
positions in Habib Allied Bank Plc,
Citibank and Bank of America.
Mr. Allana has served as the Chairman of
the First Microfinance Bank and been a
member of the Executive Committee of
the Aga Khan Agency for Microfinance.
Moez Ahamed
Jamal
Director

Mr. Moez Ahamed Jamal has experience
of over 36 years in the financial sector.

He currently serves on the Boards of
Diamond Trust Bank Kenya Ltd, Marcuard
Family Office, Switzerland, Jubilee
Holdings Limited (East Africa) and Global
Finanz Agency. He is a Partner of JAAM
AG, an investment advisory company in
Switzerland.

Mr. Jamal has also held senior positions in
Credit Suisse and Lloyds Bank
International.
Directors
Agha Sher Shah
Director
Shaffiq Dharamshi
Director

Mr. Dharamshi is a banker with over 23
years of banking experience in the Middle
East and Africa

He currently holds the position of Head of
Banking at AKFED, and is responsible for
overseeing the operations of banks in
AKFED’s portfolio across Asia and Africa

He also currently serves on the Boards of
Diamond Trust Bank Tanzania Limited,
Diamond Trust Bank Uganda Limited,
Diamond Trust Bank Kenya Limited,
Industrial Promotion and Development
Company of Bangladesh Limited and DCB
Bank Limited, India.

Mr. Agha Sher Shah has over 28 years of
experience in the financial sector

He is currently Chairman and Chief
Executive of Bandhi Sugar Mills. He also
serves on the Boards of Attock Cement
Limited, Sui Southern Gas Company
Limited, Thatta Cement Company Limited,
Newport Containers Terminal (Private)
Limited, Triton LPG (Private) Limited,
Bandhi Powergen Company (Pvt) Ltd. and
Benazirabad Facilities (Pvt.) Ltd.

Mr. Sher Shah has also held the position
of Senior Portfolio Manager at the Abu
Dhabi Investment Authority.
Dr Najeeb Samie
Director

Dr Najeeb Samie has over 34 years of
experience in the corporate and financial
sector

He is currently the Managing Director of
PIA Investments Ltd and is a Director of
the Roosevelt Hotel Corporation and the
Parisien Management Company Ltd,
amongst other tourism related companies.

Dr. Samie has also served as the
Chairman of State Life Insurance
Corporation of Pakistan, Alpha Insurance
Company Limited and PICIC.
5
First class senior management team

Experienced management team with significant experience with HBL and other local and international banks

Strong track record of growth and profitability overseeing HBL’s net profit increasing from PKR13bn to PKR32bn between 2009 and 2014 (+19% CAGR)

Acquired Barclays’ Pakistan business to add high-quality talent to the Bank, similar to that experienced following the Bank’s purchase of Citi Pakistan’s
consumer business.
Nauman K. Dar
President
& Chief Executive Officer
13 / 33 / 33(1)
Rayomond Kotwal
Chief Financial Officer
1 / 18 / 29(1)
Ayaz Ahmed
Head, Acquisitions &
Investments
15 / 23 / 33(1)
Nausheen Ahmad
Company Secretary
& Head Legal
9 / 9 / 27(1)
Sima Kamil
Head, Branch Banking
14 / 29 / 29(1)
Aamir Irshad
Head, Corporate
& Investment Banking
10 / 24 / 27(1)
Salahuddin Manzoor
Global Treasurer
5 / 32 / 32(1)
Anwar Zaidi
Head, Financial Institutions
& Global Trade Services
13 / 34/ 34(1)
Faiq Sadiq
Head, Payment Services
15 / 25 / 25(1)
Mirza Saleem Baig
Head, Islamic Banking
14 / 30 / 32(1)
Hassan Raza
Head, Structured Credits
3 / 23 / 23(1)
Abrar Mir
Chief Innovation & Financial
Inclusion Officer
1 / 15 / 21(1)
Tariq M. Akbar
Head, Global Operations
15 / 39 / 40(1)
Rizwan Haider
Chief Risk Officer
13 / 34 / 35(1)
Fareed Hosain
Chief Information Officer
2 / 28 / 33(1)
Jamal Nasir
Global Head Human and
Organizational Development
1 / 18 / 28(1)
Salim Amlani
Chief Internal Auditor
10 / 39 / 39(1)
Faisal Anwar
Chief Compliance Officer
2 / 30/ 30(1)
Abbas Hassan
Head International Banking
Europe, Middle East &
Americas
3 / 30 / 31(1)
Abid Sattar
Head International Banking
Asia & Africa
10 / 32 / 32(1)
HBL’s management team is highly experienced in managing domestic and international banks
(1)
Number of years in HBL / years in banking / Total work experience .
6
Progress since privatization – Balance sheet
Net Advances
Total assets
(PKRbn)
(PKRbn)
564
456 455 460 457
317
349
2,091
595 594
500
1,610
1,715
1,867
382
1,140
259
750
594 689
488 529
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Jun
15
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Jun
15
Deposits
Shareholders equity
(PKRbn)
(PKRbn)
1,401
864 925
1,603
1,525
170 178
1,215
133
934
531 597
405 433 459
84
683 747
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Jun
15
32
41
53
60
96
142
109
66
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Jun
15
7
Progress since privatization – Operating results
Total Revenue
Operating profit
(PKRbn)
(PKRbn)
93
71
48
33
39
54
74
50
74
41
60
57
40
22
17
24
26
31
43
35
37
33
21
10
Profit after taxation
Return on Equity
(PKRbn)
26% 27%
32
22
17
13
10
10
11
23
22%
21%
23
17%
17
17% 18%
19%
20% 20%
19%
17%
13
6
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 H1-15
8
Deposits remain the growth engine
Deposit composition
Growth in current deposits
(PKRbn)
28.4%
30.8%
31.0%
33.0%
26.7%
21.9%
18.5%
522
45.6%
46.0%
26.0%
23.2%
42.3%
26.7%
40.8%
26.2%
43.9%
29.4%
43.9%
45.0%
585
411
317
34.2%
159
194
2009
2010
249
36.5%
2009
2010
2011
2012
2013
2014
Jun'15
Fixed Deposits
Savings Accounts
Current Accounts
Key rates
2011
2012
2013
2014
Jun'15
Cost of deposits
15.0%
6.00%
12.0%
5.00%
6.9%
9.0%
3.7%
3.2%
4.00%
3.00%
6.0%
2.00%
3.0%
4.5%
0.0%
0.8%
1.00%
KIBOR
PLS rates
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
Dec-09
Mar-10
Jun-10
Sep-10
Dec-10
Mar-11
Jun-11
Sep-11
Dec-11
Mar-12
Jun-12
Sep-12
Dec-12
Mar-13
Jun-13
Sep-13
Dec-13
Mar-14
Jun-14
Sep-14
Dec-14
Mar-15
Jun-15
0.00%
Cost of Deposits -Domestic
Cost of Deposits -International
Total Cost of Deposits
9
A diversified loan portfolio…
Loan portfolio composition by line of business
Loan portfolio composition by industry segments
SOE
12.0%
International
26.7%
Corporate
50.3%
Others
31.3%
Net loans:
PKR595bn
Others
2.3%
Consumer
3.7%
Government
9.3%
Net loans:
PKR595bn
Agriculture
4.8%
Individual
6.4%
Power &
Oil and Gas energy
2.1%
6.9%
Agriculture
4.2%
Commercial Retail
7.4%
5.4%
Domestic corporate customer loans
Wholesale &
retail
9.6%
Textile
10.0%
Financial
7.7%
Top 10 client concentration
No 1 No 2 No 3
3.47% 3.12% 2.48%
Public sector
28.2%
No 4
2.45% No 5
1.86%
Total:
PKR438bn
Total:
PKR861bn(1)
Others
81.03%
Private
sector
71.8%
NPL composition by line of business
NPL composition by industry segments
SOE
3.2%
International
22.4%
Others
0.4%
Consumer
1.4%
Agriculture
2.2%
Commercial
12.9%
Nos 6 - 10
4.59%
Corporate
47.9%
NPL:
PKR79.5bn
NPL ratio:
12.0%
Retail
12.8%
Data as at 31 December 2014.
(1)
Total gross cash and non-cash advances
Others
48.4%
NPL:
PKR79.5bn
Wholesale
& retail
8.6%
Textile
25.5%
Financial
0.1%
Power &
Oil andenergy
Agriculture
Gas
Individual
4.6%
2.1%
4.4%
3.1%
10
…with growing consumer lending
Growth in consumer lending
CAGR (12-14)
(PKRbn)
25.8
22.4
19.5
15.3
0.5
0.6
3.9
0.7
3.0
1.1
3.2
0.4
Consumer lending portfolio reached R25.8bn at 30 June,
2014.
(20.1)%
29.1%
66.0%

3.0
3.0
Tested model offers opportunity for growth, supported by
HBL@Work program
15.9
13.8
12.0
10.4
5.1
6.3

15.5%

While the Bank plans to rapidly scale up Consumer
Lending, this will be underpinned by a strong focus on
2012
2013
2014
Personal loans
Credit cards
Jun 15
Vehicle loans
credit quality and operating efficiency
Others
Decreasing consumer NPL ratio
(PKRm)
849
1,055
5.6%
5.4%
1,082
934
4.8%
3.5%
2012
2013
2014
Jun 15
11
Large and diversified international presence
which is unique among regional peers
International footprint
United
Kingdom

Direct presence in 28 countries

Network of 64 branches(1)

Presence in key financial hubs; London,
New York, Brussels, Singapore, Dubai
and Hong Kong

Presence in 5 countries through
associates and related entities
Netherlands
Belgium
France
Kyrgyz Republic
Switzerland
United States
of America
Turkey
Afghanistan
Lebanon
Iran
Bahrain
China
Nepal
UAE
Oman
India
Bangladesh
Hong Kong
Sri Lanka
Uganda
Maldives
Kenya
Burundi
Singapore
Tanzania
Seychelles
Mauritius
Head Office and Domestic Branch Network
Branch
Subsidiary
Related Entity
Representative office
Comprehensive regional coverage

HBL currently holds complete banking licenses in key regional locations including Sri Lanka,
Afghanistan, Oman, UAE, Bahrain and Bangladesh

Well-positioned regional player to increase market share in:
China
Iran
− Remittances
India
− Trade finance
− Investment banking
− Islamic banking
(1)
Includes branches of HBL’s subsidiaries.
Strategic development area for the bank
12
Well positioned to serve a growing
remittance market
Pakistani remittance market

International remittances form the mainstay of Pakistan’s Balance of Payments with double digit growth over the last several years

In FY15, overseas workers remitted more than US$18.4bn back to Pakistan, up 16.5% year-on-year

Of this amount, the leading source nations are Saudi Arabia (31%), UAE (23%), USA (14%) and UK (12%)

Given its strong international network, HBL is well placed to serve the home remittance market and as of Jun’15 had a 23.9% (Dec’14 22.5%)
market share

Home remittances provide a plethora of opportunities for cross-selling (deposits, loans etc). Banks are also incentivized by the SBP for
remittances channeled through their counters.
HBL home remittance volumes (2004 – H1-15), PKRbn
386
308
271
230
227
159
129
79
47
67
95
55
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
H1-15
13
Strong investment in technology underpins
commitment to the future
Investment in IT infrastructure
(PKRmn)
2,716
2,270
1,908
1,445
1,256
1,313
1,162
791
849
895
917
2008
2009
2010
282
2004
1
2005
2006
2007
Development &
implementation of core
banking systems
2
Strengthening &
consolidation of IT
systems
2011
2012
3
2013
2014
H1-15
New systems for delivery
channels & efficiency,
system upgrades
14
Strategic initiatives to continue driving growth
Growth in Consumer Lending
Growth in Agricultural Financing
(PKRbn)
(PKRbn)
25.8
24.2
22.4
25.9
19.5
18.6
15.3
12.6
9.4
9.9
2009
2010
2011
2012
2013
2014
14.4
15.1
14.8
15.5
2009
2010
2011
2012
Jun 15
2013
2014
Jun 15
Increasing fee and other non-interest income
Other growth vectors
(PKRbn)

Drive growth in agricultural / rural lending through unique sales force
of Agriculture Field Officers. Expand product range to cover entire
value chain.

Enhance presence in the Islamic Banking space, the fastest growing
segment in the Pakistan market.

Strengthen and fully leverage international network. Grow regional
presence by investing in local brands (DTB, KICB)

Enter microfinance space through potential acquisition of First
Microfinance Bank

Launch a unique product offering for women and women-owned
businesses, to improve their access to financial services
23.5
18.9
11.2
2009
12.8
2010
14.8
2011
18.1
16.0
2012
2013
2014
H1-15
15
Strong balance sheet with ample liquidity, high
capitalization and conservative risk management
Strong deposit growth
Liabilities composed mainly of sticky deposits
(PKRbn)
66.5%
Other
liabilities
16.2%
61.6%
48.9%
41.4%
40.3%
1,401
1,215
683
747
2009
2010
39.0%
37.1%
1,525
1,603
Current
30.6%
Total
liabilities:
PKR1,913bn
934
Time
15.5%
2011
2012
Total deposits
2013
2014
Jun'15
Savings
37.7%
Loans-to-deposits ratio
Robust capital base…
Conservative risk management practices
(PKRbn)
(PKRbn)
13.3%
14.6%
12.1%
15.6%
13.2%
10.5%
67
2009
78
2010
15.3%
12.6%
89
97
2011
2012
Tier 1 capital
CAR
15.4%
12.9%
109
2013
16.2%
13.3%
129
2014
15.7%
12.8%
131
Jun 15
77.4%
83.5%
85.1%
62
66
70
48
2009
55
2010
60
2011
82.6%
83.5%
83.2%
86.9%
78
80
80
78
65
2012
67
2013
66
2014
68
Jun'15
Tier 1 ratio
NPL
Provisions held
Coverage ratio
16
Delivering consistently strong profitability
Net interest margin(1)
Cost to income ratio
16.0%
12.0%
48.6%
44.6%
42.3%
40.6%
41.3%
41.2%
2009
2010
2011
2012
8.0%
41.3%
4.0%
0.0%
1Q09
3Q09 2Q10 1Q11 4Q11 3Q12 2Q13 1Q14 4Q 14 2Q15
Income yield
Cost of funds
2013
2014
H1-15
Net interest margin
Profit before tax (“PBT”) / Net profit after tax (“NPAT”)
Return on Equity(2)
(PKRbn)
49
23.4%
36
36
34
32
19.1%
31
20.6%
20.7%
22.7%
22.8%
2014
H1-15
18.2%
27
22
21
23
23
17
17
13
2009
(1)
(2)
2010
2011
PBT
2012
2013
NPAT
2014
Income Yield = (Interest Income + Investment Income) / Net Earning Assets.
Cost of Funds = Interest Expense / Total Liabilities.
Net Interest Margin = Income Yield – Cost of Funds.
ROE is calculated excluding Surplus on Revaluation of assets.
H1-15
2009
2010
2011
2012
2013
17
Strong earnings and dividends
Strong set of earnings even with bonus shares issued
(PKR)
2 for 10
8.4x
1 for 10
1 for 10
9.7x
7.3x
5.3x
11.1
2009
1 for 10
18.3
14.1
1 for 10
10.0x
9.5x

HBL’s net profit more than doubled between 2009 and 2014

The return on equity and return on assets for HBL were
6.4x
18.4
17.2
21.6
22.7% and 1.8% respectively for 2014 vs 16.0% and 1.4%
11.3
2010
2011
EPS
2012
P/E
2013
(1)
2014
respectively for the Pakistani banking sector
H1-15
Bonus shares
Growing dividend payments
(PKR)
54.1%
46.1%
38.3%
40.8%
46.6%
55.5%
59.9%

The Board will determine future dividend payments while
striking a balance between:
–
12.0
6.5
6.0
7.0
7.5
8.0
achieve its strategic objectives and
7.0
–
2009
2010
2011
DPS
1)
2012
2013
2014
H1-15
ensuring that sufficient capital is available for HBL to
providing shareholders with an attractive return on
investment
Dividend payout ratio
Based on share price as at 31 December of respective year ends (for H1-15, as at 30 Jun’15) and full year EPS
18
Strategic outlook
Maintain market leading position in domestic markets and reduce funding costs
1
 Expand
branch footprint to continue building stable, retail deposit base
 Reduce
funding costs by growing current accounts
Technology to drive speed, efficiency and growth
2
1
 Branchless
banking, mobile banking to help increase outreach
 Technology
led product innovation to support financial inclusion
 Establish
R&D center to encourage development of creative customer solutions
Achieve scale through organic expansion and selective acquisitions
 Expand
3
1
international network and focus on regional markets
 Selectively
look at local and regional acquisitions where they add value
Controlled growth in loan portfolio, in particular, rural finance, Consumer and SMEs
4
1

Scale-up tested consumer model

Leverage HBL’s strength in agricultural finance for further penetration throughout the value chain

Expand loan portfolio as demand picks up, especially in SME lending
Continue to enhance risk management practices
5
1
 Dynamic
credit risk policy to align with business needs and regulatory environment
 Strengthening
6
1
of operational risk management framework
Continue to invest in and develop human capital
 Target
multi-disciplinary recruitment to grow employee talent pool
 Increase
 Meet
investment in training and development
gender diversity targets
19
Appendix
20
Consolidated balance sheet
…....…….. (PKR Mln) ….…..…..
2009
2010
Assets
Cash & Bank Balances
Lending to Financial Institutions
Investments
Advances
Others
Total Assets
120,207
5,353
216,468
454,662
67,235
863,925
Liabilities
Bills payable
Borrowings
Deposit and other accounts
Sub-ordinated loans
Other liabilities
Total liabilities
Shareholders' equity
Share capital
Reserves
Equity attributable to the bank
Non controlling interest
Surplus on revaluation of assets - net of deferred tax
Total equity
2011
2012
2013
2014
Jun 2015
119,053
30,339
254,909
459,750
60,649
924,700
150,749
41,581
418,604
457,368
71,253
1,139,555
205,210
24,828
797,095
499,818
83,523
1,610,474
192,818
35,271
826,062
563,700
97,419
1,715,270
202,968
34,313
924,307
595,295
110,121
1,867,004
214,197
16,142
1,161,292
594,386
104,625
2,090,642
10,042
52,543
682,750
4,212
30,008
779,555
9,775
40,460
747,375
4,282
26,557
828,449
13,895
39,474
933,632
5,036
37,931
1,029,968
18,943
196,588
1,214,964
5,441
41,809
1,477,745
19,422
107,864
1,401,230
2,633
41,687
1,572,836
21,990
103,411
1,524,538
46,962
1,696,901
24,025
231,000
1,603,180
54,677
1,912,882
9,108
66,026
75,134
1,143
8,093
84,370
10,019
76,823
86,842
1,213
8,196
96,251
11,021
89,126
100,147
1,236
8,204
109,587
12,123
106,594
118,717
1,227
12,785
132,729
13,335
117,299
130,634
1,886
9,914
142,434
14,669
132,597
147,266
1,185
21,652
170,103
14,669
136,374
151,043
1,227
25,490
177,760
21
Consolidated statement of profit and loss
…....…….. (PKR Mln) ….…..…..
2009
2010
Mark-up/ return/ profit/ interest earned
Mark-up/ return/ profit/ interest expensed
76,076
33,406
81,325
34,330
Net mark-up/ profit/ interest income
Non mark-up/ interest income
Fee, commission and brokerage income
Income / gain on investments
Income from dealing in foreign currencies
Other income
42,670
Total non mark-up/ interest income
Total income
Non mark-up/ interest expense
Administrative expenses
Other expenses
2012
2013
2014
98,580
42,182
116,773
59,012
120,223
65,207
137,842
68,755
73,521
34,227
46,995
56,398
57,761
55,016
69,087
39,294
5,316
597
1,913
3,333
5,433
1,380
3,189
2,760
6,086
2,021
3,756
2,920
6,786
3,566
2,568
3,040
8,292
4,845
2,299
3,887
12,119
5,680
2,847
2,865
7,987
8,115
1,196
828
11,160
53,830
12,762
59,757
14,783
71,181
15,960
73,721
19,323
74,339
23,511
92,598
18,126
57,420
22,746
613
24,253
879
29,372
631
30,381
1,011
36,110
696
41,307
1,284
23,727
649
23,359
25,132
30,003
31,392
36,806
42,591
24,376
Profit before tax and provisions
Net provisions
30,471
9,090
34,625
7,586
41,178
6,857
42,329
6,767
37,533
1,400
50,007
1,493
33,044
1,859
Profit before tax
Taxation
21,382
7,981
27,039
10,006
34,321
11,988
35,562
12,770
36,133
13,106
48,514
16,695
31,185
14,029
Profit after tax
13,401
17,034
22,333
22,792
23,027
31,820
17,156
Total non mark-up/ interest expenses
2011
H1-15
22
Net Advances (By Line of Business)
PKR Mln
Group
Corporate
31-Dec-14
%
30-Jun-15
%
295,199
50%
302,063
51%
Retail (excluding Agriculture)
45,014
8%
36,693
6%
Commercial
32,003
5%
35,191
6%
Agriculture
25,423
4%
27,427
5%
Consumer
22,510
4%
24,756
4%
Others (Islamic&FI)
10,960
2%
24,342
4%
Domestic
431,109
72%
450,472
76%
International banking
164,186
28%
143,914
24%
Bank
595,295
100%
594,386
100%
23