JULY - AUG 2020

TRADE CHRONICLE
HBL profit up by fourfold
to Rs15.2 billion
Habib Bank Limited has declared a
consolidated profit after tax of Rs 15.2
billion for H1'20, an almost fourfold
increase over the same period last year.
The Bank's earnings per share increased
to Rs 10.32 compared to Rs 2.53 in
H1'19. The strong results are
underpinned by HBL's strong domestic
franchise where the growth trajectory
continues across the range of activity
drivers and reflect the strength of the
brand. Profit before tax for the first six
months of 2020 increased by more than
2.5 times, to Rs 25.8 billion.
During the first half of 2020, domestic
deposits grew by Rs 219 billion to reach
Rs 2.4 trillion, increasing HBL's market
share to 14.12%; over 40% of the growth
came from current accounts, improving
the current account mix to 36.0% and
maintaining a strong CASA ratio of
85.7%. Total advances closed at Rs 1.1
trillion.
Compared to the same period last year,
the Bank's average domestic balance
sheet grew by Rs 294 billion driven by an
11% growth in average deposits. The
Bank's net interest income for the first six
months of 2020 thus accelerated by 32%
over the first half of 2019, to Rs 63.1
billion, on the back of volume growth and
79bps increase in net interest margin.
Despite a reduction in fee income
resulting from slower economic activity,
total non-fund income more than
doubled to Rs 16.6 billion through timely
realization of capital gains. Total
consolidated revenue thus rose by 43%,
to nearly Rs 80 billion, for the first half of
2020.
With the New York branch closed and its
Business Transformation program nearly
complete, HBL's administrative
expenses reduced by 14% over the
previous quarter. The cost/income ratio
reduced from 80.8% in H1'19 to 59.8% in
H1'20. The Bank has also prudently
taken general provisions to cater to the
impact of COVID-19 on borrowers and
the economy, improving its coverage
ratio to 95.0%.
During H1 2020, HBL accelerated its
business momentum while overcoming
the challenges thrown by the COVID-19
pandemic which had an adverse impact
on the economic growth the world over
including Pakistan. HBL's presence in 3
continents, its 1700+ branches, 2100+
ATMs, 40,000+ HBL Konnect agents,
and continued investment in technology
and talent has enabled the Bank to
perform well. Moreover, a well-designed
& practiced business continuity program
continues to serve the Bank's customers.
The Bank's customer base has grown by
40% since Dec 2019 and now stands at
over 27 million. This increase has been
driven by an accelerated adoption of the
Bank's digital offers like HBL Mobile,
Internet Banking, HBL Konnect and
payment and collection platforms. This
also includes the Ehsaas Emergency
Cash Program customers.
HBL is a market leader in Consumer
Banking. The Bank offers its customers
Credit Cards, Debit Cards, Personal
Loans, Car Financing and Merchant
Acquiring products. In H1 2020, the Bank
acquired highest number of credit cards
and car financing and in the industry. HBL
also remains a leader in the Merchant
Acquiring business with the highest
volumes processed across its Point of
Sale network. HBL continues to invest in
e-commerce with major online partners
to facilitate increased online shopping
needs of our customers with added
peace of mind of 3D Secure technology.
HBL is also the first bank in the country to
disburse personal loans and approve
credit cards in less than a minute to credit
worthy customers using HBL Mobile.
HBL's Corporate & Investment Banking
maintained its position at the forefront of
the market, continuing to be the largest
and most active in Pakistan.
EFU Life, HabibMetro Bank
collaborate to offer Covid-19 cover
Habib Metro Bank and EFU Life
strengthened their partnership
by taking the initiative to launch
"COVID - 19 Cover" - a first-ofits-kind
product that aims to
provide a financial solution to
HabibMetro customers who are
financially and medically
impacted during the ongoing
pandemic.
A digital signing ceremony was
conducted, where Mohsin Ali Nathani,
President & CEO and Ahmed Shah
Durrani, Head - Retail Banking at
HabibMetro Bank, along with Taher G
Sachak, CEO & MD and Mohammed Ali,
CSO & ED at EFU Life,
signed the product
agreement at their
respective premises.
The unique product,
Covid-19 Cover, is a
p r o t e c t i o n p l a n
designed to cover the
reimbursement of
diagnostic test and
daily hospitalization charges while also
offering term life death benefit for
individuals and families, with a premium
starting from as low as PKR 1,400. Once
launched, the plan will be available at
HabibMetro Bank's branches across
Pakistan.
Speaking on the occasion, Taher G
Sachak, CEO & MD EFU Life said, 'Covid-
19 Cover is carefully designed to address
the financial needs of the masses and
protect them medically against ongoing
pandemic. The new addition of product is
an affordable solution and a small step
towards assuring the financial safety and
peace of mind for the valuable customers
of HabibMetro Bank.'
Mohsin Ali Nathani, President & CEO of
HabibMetro Bank commented, 'We are
pleased to cater to the need-of-the-hour
and collaborate with EFU to offer the
COVID - 19 Cover Protection Plan as a
very relevant financial solution in a timely
manner during the ongoing pandemic."
TRADE CHRONICLE - July .~ Aug. 2020 - Page # 30