TC Mar-Apr 2021 Issue

TRADE CHRONICLE
HBL creates history: becomes the first Pakistani bank
to open a branch in Beijing, China
HBL became the first Pakistani bank
to open a branch and serve clients
in Beijing, China’s capital city. The
inauguration ceremony for HBL Beijing
was attended by clients, regulators and
senior executives of the Bank from
across HBL’s international network.
From Pakistan, Mr. Jameel Ahmad,
Deputy Governor — State Bank
of Pakistan, Mr. Sultan Ali Altana,
Chairman - HBL, Mr. Muhammad
Aurangzeb, President & CEO HBL,
along with senior executives and
HBL’s customers, virtually joined the
ceremony. HBL Beijing offers a full
range of products & services for the
Bank’s esteemed clients.
HBL remains grateful to the
Governments of Pakistan and China
HBL’s Q1 profit jumps 108
percent to Rs8.560 billion
Habib Bank Limited consolidated net
profit increased 108 percent to Rs8.560
billion translating into earnings per
share (EPS) of Rs5.68 for the quarter
ended March 31, 2021, a bourse filing
said recently.
It earned Rs4.108 billion with EPS of
Rs2.79 in the same quarter last year.
Interim cash dividend of Rs1.75/share
was announced for the period ended
March 31, 2021, that was 1.7 percent,
the PSX notice said.
Net interest income (NII) of the bank
settled at Rs32.5 billion for Q1CY21,
up 16 percent, led by a sharp reduction
in interest expense.
“Interest earned remained stagnant
QoQ indicating that asset re-pricing
following the rate cuts has completed
for the bank,” an analyst at Arif Habib
Limited said. The bank’s total deposit
and the regulators for the trust and
confidence they have reposed on
the Bank, through the opening of the
branch.
HBL has created history by being
the first and only bank from Pakistan
to have a branch in Beijing and one
of the three banks from South Asia
and MENA region to offer end-to-end
RMB intermediation in China. Upon
commencement of business, HBL
Beijing has become HBL’s second
branch and its managing branch in
China; both branches in Beijing and
Urumqi are equipped with foreign
exchange and RMB license to better
facilitate customers’ requirements in
multiple currencies.
HBL’s presence in China will
allow the bank to interact with
State-Owned Enterprises
(SOEs) and leading financial
institutions involved in CPEC
and across Belt and Road
Initiative (BRI) corridors. China
is a very important market for
HBL not only in terms of the
business in China and CPEC,
but also for Chinese companies
working on projects in countries
across the HBL network.
base closed at Rs2.8 trillion. Average
domestic deposits increased by a multiyear
high of nearly 20 percent over
Q12020, with average current accounts
rising by more than Rs120 billion.
This led to a nearly Rs500 billion
expansion in the bank’s average
balance sheet in Q12021.
Consequently, despite a much lower
interest rate environment, net interest
income rose to Rs32.5 billion, a 16
percent growth over Q12020.
Expenses remain well contained
despite continued investments in
people and technology. The bank
reduced its administrative expenses by
seven percent over Q12020 as the cost
to income ratio (excluding capital gains)
improved to 58.4 percent in Q12021
from 81.4 percent in Q12020.
Total non-performing loans (NPLs) of
HBL declined by Rs 0.7 billion over
December 2020, with the infection ratio
remaining stable at a record low of 6.3
percent. Helped by strong profitability,
Meezan Bank wins
‘Employer of the Year’
Diamond Award
Meezan Bank, Pakistan’s first and
the largest Islamic bank has been
recognized with the ‘Employer of the
Year’ Diamond Award in the category
of ‘Large National Companies’ by
Employers’ Federation of Pakistan
(EFP) – Pakistan’s largest forum for
employers.
The award was announced at the 8th
ceremony of the Employer of the Year
Awards held at a local hotel in Karachi.
Mr. Khalid Zaman Khan – Group
Head, Human Resources, Learning &
Development, Meezan Bank received
the award from Honorable President of
Pakistan – Dr. Arif Alvi.
the bank’s Tier 1 CAR rose to 13.9
percent, with total CAR increasing to
17.9 percent, a statement said.
Total deposit base closed at Rs2.8
trillion, with robust CA and CASA ratios
of 35.1 percent and 83.1 percent,
respectively. Average domestic
deposits increased by a multi-year high
of nearly 20 percent over Q12020, with
average current accounts rising by
more than Rs120 billion.
HBL President and CEO Muhammad
Aurangzeb said, “The bank’s growth
momentum continues in the new year
with all activity drivers showing an
upward trajectory. The growth was
broad-based across all business lines,
with strong performance from the
deposits, cards, trade and consumer
finance businesses.”
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 34