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1. HABIB BANK LIMITED

2. Contents of Discussion Mission Statement Introduction History Level of

Management 3. Contents of Discussion (Cont..) Environmental Challenges Products &

Services Assets Shares Sponsors

4. Contents of Discussion (Cont..) Competitors SWOT Analysis Achievements

5. Mission StatementTo be recognized as the leadingfinancial institution of

Pakistanand dynamic international bank inthe emerging markets, providingour

customers with a premium setof innovative product andservices, and grantingsuperiorvalue to our stakeholders,shareholders, customers andemployees.

6. HBL establish itself in the Quaids city INTRODUCTION (Karachi) on 8

Habib Bank Group is leader in Pakistans August 1947. Service Extensive

network of 1501 branches Industry. spread over 26 It was Privatized during the

start of 21st countries. century in Pioneer in providing innovative

services 2004. such as: First installation of mainframe computer in Pakistan.

Followed by ATM service and Internet Banking facilities.

Young 7. History boy Ismail Habib reached Bombay in search of Got jobinjob. Intelligent and keen to his work utensils and non-ferrous metals. &

selected as President of Expanded business and engaged in the market. Private

Banking.

8. Level of Management & Board ofDirectors President & CEO: Mr. Zakir

Mehmood Board of Directors Mr. Zakir Mehmood (President & CEO) Mr.

Sultan Ali Allana (Chairman)

9. Level of Management & Board ofDirectors Mr. Ahmed Jawad Mr. Sajid

Zahid Mr. Sikandar Mustafa

10. Level of Management & Board ofDirectors Mr. Mushtaq Malik Mr.

Moez Jamal 11. ENVIRONMENTAL CHALLENGES A broad view of market is important

when management is interested in introducing better services for customers.

Factors that influence buyers and thus change the size and composition of market

overtime involves initially building customer profiles. These influences include: Political and Legal Environment Economic Trends Socio Cultural

Environment Technological Factors Terrorism (Latest)

12. POLITICAL AND LEGAL ENVIRONMENT Banks are strongly affectedby the political and legal considerations. This environment is composed of

regulatory agencies and government law that influence and limit various

organizations and individuals. Mostly these laws create new opportunities for

business. Business legislations has following purposes: To protect bankingcompanies from unfair competition. To protect consumers from unfair

business practices adopted by banking companies To protect the interest of the

society from unbridled business behavior.

13. Economic Trends A banking market requires better consumer market in

volume along with higher borrowing power. The available borrowing power

depends on: Consumer Income Saving rates Consumption Patrons Rates of

Interest Budget Deficit Exchange rates Cost of living Inflation

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14. SOCIO-CULTURAL ENVIROMENT A society is shaped by beliefs, norms

and values. People in a society consciously and unconsciously interact with:

Themselves Others Organization Society Nature

15. TECHNOLOGICAL FACTORS The rate of change of technology has

greatly affected the rate of growth of economy. New technology is creating deep

rooted affects which could be observed in long run. The improvement techniquesinvolved in on line banking.

16. TERRORISM It truly destroys the ongoing of an organization, and hence

makes it difficult to achieve the desired objectives or goals of the company. InPakistan, the economy of the country collapsed because of the terrorist activities

in the past few years, especially in the most affected areas like of Khyber

PakhtunKhuwa (KPK) and in the present days, KARACHI Due to terrorism notonly HBL or Banks only but all the business sector of the country is affected

17. PRODUCTS Following are some of the products and services that are

provided by the HBL Products: HBL Muhafiz Rupee Travelers Cheque HBLAuto Finance HBL Flexi Loans for salaried personnel HBL Lifestyles

Financing Scheme HBL i-Card HBL House Financing Loans HBL FastTransfer Haryali Agricultural Loans HBL E-Bank Money club account Id

account 18. SERVICES Retail Banking Commercial Banking Corporate Banking

International Operations

19. RETAIL BANKING RETAIL BANKING Core strenght of HBL with 1425branches Provides diversified low cost deposit base Formed basis for corporate

and investment banking and treasury activities

20. COMMERCIAL BANKING COMMERCIAL BANKING On November 1,2000 Commercial Banking came into being providing two- fold objective of

setting up Commercial banking: First to stop the erosion of market share in the

middle market. Second, to regain the lost market share 21. CORPORATE BANKING CORPORATE BANKING This group serves

large institutional customers who require sophisticated products in an

environment of intense competition This Group is now recognized as a market

leader & participates in most large structured finance dealsINTERNATIONAL OPERATIONS First international branch was opened in

1951 in Colombo-Sri Lanka: The Banks branches in financial centers continue

to provide efficient trade settlement . Also provide services to the entire networkand business with other banks

22. Assets NOTE 2010 2009 (IN RUPEES) Cash and balances with treasury

banks 5 81,640,246 79,839,836 Balances with other banks 6 37,413,185

40,366,687 Lendings to financial institutions 7 30,339,344 5,352,873Investments 8 254,909,116 216,467,523 Advances 9 459,750,012 454,662,499

Operating fixed assets 10 16,155,290 16,766,668 Deferred tax asset 11 9,572,203

9,205,944 Other assets 12 34,920,007 41,262,754 TOTAL 924,699,403863,924,793

23. SharesTotal number of share holders= 113,506.Total Shares=1,001,880,000

(More than 1 Billion).Each Share of HBL= Rs.5.Cost of per share in market=Rs.120.It has a domestic market share of over (40%). Italso continues to dominate

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the commercialbanking sector with a major market share ininward forward

remittances (55%) and loans tosmall industries, traders and farmers. 24. SPONSORS OF HBLThe following two are the main sponsors of HBL:

Agha Khan Group (The biggest sponsor of HBL (Habib Bank Limited) with the

most share i-e 51%). Government and General Public (with 49%).

25. COMPETITORS OF HBL NBA (National Bank Limited). UBL (UnitedBank Limited). MCB (Muslim Commercial Bank). Allied Bank. Standard

Chartered. Bank Alfalah.

26. Goodwill & historical background. Union and ConflictsProfessional andwell trained staff. Checking SystemLargest customer base. Weak marketing

policies.Largest commercial bank. Nepotism & Favorism.1501 branches World

wide Infected portfolio still exists as bad20% share in financial market.

debts.Large Balance sheet size. Centralized management inDecentralizedauthority. particular areas. Strength Weaknesses Threats OpportunitiesAdverse &

unstable government For growth and expansion in policies. cash

management.Political instability. Faster market growthAdvance technology.

Restoration of investors confidenceCompetition from other banks. Largedeposit base and funds flow

27. ACHIEVEMENTS IN 2008 Deposit growth for the year has been 12.5%Net asset growth of the bank has been 19% over 2007. HBLs consolidated Pre-

tax profit for 2008 is Rs. 22.03 billion. Profit after tax is Rs. 15.61 billion, which

translates into an earning per share of Rs. 20.47. 28. ACHIEVEMENTS IN 2009 Deposit growth for the year has been 14.3%.

Net asset growth of the bank has been 27.2% over 2008. HBLs consolidated

Pre-tax profit for 2009 is Rs. 21.4 billion. The profit after tax is Rs. 13.4 billion,

which translates into an earning per share of Rs. 14.70. The Bank announced afinal cash dividend of Rs. 6.00 per share (60%) and bonus shares of 10%.

29. ACHIEVEMENTS IN 2010 Deposit growth has been Rs. 16.8 billion, total

assets have grown by Rs. 11.5 billion. Net assets by Rs. 1.9 billion. HBLsconsolidated Pre-tax profit for 2010 is Rs. 12.8 billion. The profit after tax is Rs.

7.9 billion, which translates into an earning per share of Rs. 7.70 showing

increase of 26% over June 2009.

30. ACHIEVEMENTS IN Net asset growth Deposit has registered remarkable

growth of 25%.2011 HBLs consolidated Pre-tax profitof the bank has been

14% over 2010. for 2011 is Rs.34 Profit after tax is Rs. 22 billion, whichbillion.translates into an earning per share of Rs. 20.13. The Bank announced a final cash

dividend of Rs. 4 per share (40%) and 1 bonus shares for every 10 shares held

(10%), which is in addition to the interim dividend of Rs. 3 per share.

31. Thanks for the Presentation