TC Nov-Dec 2021 Issue

TRADE CHRONICLE
Bank AL Habib deposits
increased to Rs. 1,272.6 billion
According to the unaudited
financial
statements of Bank AL
Habib Limited along
with the unaudited
consolidated
financial statements
of Bank AL Habib
Limited and the Bank’s Subsidiaries
AL Habib Capital Markets (Private)
Limited and AL Habib Asset
Management Limited for the period
ended September 30, 2021, the
performance of the Bank continued to
be satisfactory, during this period.
The deposits increased to Rs. 1,272.6
billion as compared to Rs. 1,099.7
billion on December 31, 2020. In the
same period, advances increased to
Rs. 659.2 billion from Rs. 510.3 billion,
while investments increased to Rs.
934.7 billion from Rs. 764.9 billion. The
pre-tax profit of the Bank for the nine
months period ended September 30,
2021 was Rs. 22.31 billion as compared
Bike rides made safe with
customers’ life insurance
Considering the high rate of motorbike
accidents and the road safety situation
in the country, the widely popular ridehailing
service, Bykea, is now offering
insurance coverage to all its customers
if they meet any unfortunate road
accident while using its service.
According to research, bikes are five
times more likely to meet accidents
than a normal four-wheel vehicle,
making the rider and the passenger
vulnerable to life-threatening injuries.
The insurance offered by Bykea in
partnership with the State Life of
Pakistan covers hospital charges,
to Rs. 22.09 billion during the
corresponding period last year.
The profit after tax for the period
ended September 30, 2021 was Rs.
13.93 billion compared with Rs. 13.13
billion during 2020.
By the Grace of Allah, the Bank now has
a network of 954 offices, comprising
921 branches, 29 sub-branches, and
4 Representative Offices. Our branch
network includes 133 Islamic Banking
Branches and 3 Overseas Branches.
Continuing with our branch expansion
policy, the Bank intends to open more
branches during the year 2021.
In September 2021, the Bank
successfully completed its eighth issue
of rated, unsecured, and subordinated
Term Finance Certificates (TFCs)
amounting to Rs. 5,000 million
(inclusive of a “Green Shoe” option
of Rs. 2,000 million) through private
placement. This private placement
was managed and arranged by your
Bank. This TFC issue has further
enhanced the Bank’s capital adequacy
and will also support future growth in
injury-treatment charges, and
compensates the bereaved families in
case of human lives lost.
The Bykea users now have the option
to pay a nominal amount on each bike
taxi trip to get themselves an insurance
cover of PKR 25,000 for hospitalization
and injuries. In case, the accident
results in a tragic death or causes
permanent disability to the user, his/
her next of kin will be eligible to receive
PKR 400,000 in lieu of the life insurance
cover.
Rafiq Malik, Chief Operating Officer,
Bykea, said, “We are constantly trying
to provide access to services leveraging
technology for the middle class in
Pakistan. We feel our partnership
with State Life of Pakistan is a
first in offering coverage to the
most vulnerable on the roads in
Pakistan and we hope that in the
odd instances of road accidents,
our customers are covered when
traveling using our platform.”
Shoaib Javed Hussain,
Chairperson, State Life
Insurance Corporation of
Pakistan at the occasion said,
“This is truly a first in Pakistan
of digital and protection
innovation, providing social
Nov - Dec - 2021
our operations. PACRA has assigned a
rating of AA+ (Double A plus) for this
Tier-II TFC-2021.
Alhamdolillah, as informed earlier in
our review for the period ended June
30, 2021, Pakistan Credit Rating Agency
Limited (PACRA) has upgraded the
Bank’s long term entity rating from AA+
(Double A plus) to AAA (Triple A) while
maintaining the short term entity
rating at A1+ (A One plus). This long
term credit rating (AAA) denotes the
highest credit quality with the lowest
expectation of credit risk and indicates
exceptionally strong capacity for timely
payment of financial commitments.
The ratings of our pre-existing
unsecured, subordinated Term
Finance Certificates (TFCs) were also
upgraded from AA (Double A) to AA+
(Double A plus) for TFC-2018 and from
AA- (Double A minus) to AA (Double
A) for TFC-2017 (perpetual). These
ratings denote a very low expectation
of credit risk emanating from a very
strong capacity for timely payment of
financial commitments.
protection to working Pakistanis at a
nominal price. State Life’s endeavor
and vision is to transform health, life,
and financial protection in Pakistan;
to enable Pakistanis to achieve life
goals with the confidence that State
Life protects them and their families.
This is the first and important step
in achieving that vision through true
product and tech innovation.”
“As someone who is the sole
breadwinner of his family and barely
manages to make ends meet, I am
thankful to Bykea for introducing the
customers’ protection. God forbid, if
something happens to me, at least I
know my family will be taken care of,”
says 37-year-old Shabbir Ahmed, a
resident of Gulistan-e-Jauhar.
While Bykea, along with the city
administration, has been encouraging
the use of a helmet for motorbike
drivers and pillion riders, very few
citizens have any kind of insurance
cover in the event of a mishap on the
road. With this optional feature on
the trip, the customers can rest easy
as they get the insurance cover for all
sorts of injuries sustained; do not have
to pay for hospitalization; and do not
have to worry about their family’s wellbeing
in case of permanent disability
or demise.
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