HABIB METROPOLITAN BANK (Ltd)

HABIB METROPOLITAN BANK (A Subsidiary of habib bank AG Zurich )

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“In The Name Of Allah The Most Merciful And Beneficent”

ASSIGNMENT ON HABIB METROPOLITAN BANK Institution:

HAILEY COLLEGE OF BANKING & FINANCE Submitted by: Page | 3

Aroosh Mehmood M10MBA026 Anum Arshad M10MBA043 Dania Shah M10MBA069

Submitted to:

Sir Raiz Ahmed Mian

ACKNOWLEDGEMENT

First of all we thank to ALLAH ALMIGHTY gave us this beautiful life . We are very grateful to our respected SIR AHMED RAIZ MAIN who gave us this Page | 4

opportunity to make the project on HABIB METROPOLITAN BANK and helping us to having all the information about the bank I would also thank to my parents and my group members for co-operate .

Contents: DESCRIPTION Page #

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➢ Economic and banking review ………………………………………..07

➢ Habib Metropolitan Bank  History & Introduction…………………………………………...08  Vision……………………………………………………………..09  Mission…………………………………………………………...10 ➢ PACRA maintains ratings of Habib metropolitan…………………...11 Bank ltd. (Hmb) ➢ Achievements…………………………………………………………...12 ➢ Corporate Information……………………………………………….....12 i. Board of

Directors....................................................................12 ii. Chairman.............................................................................. ....12 iii. Directors................................................................................ ...12 iv. Audit Committee.......................................................................12 v. Company sectary......................................................................12 ➢ Competitors.....................................................................................13 PRODUCTS.........................................................................................14 vi. vii. viii. ix. x. xi. xii. xiii. xiv. xv. xvi. xvii. xviii. xix. xx.

HMB Premium Deposit Scheme...............................................14 Basic Banking Account ...........................................................15 HMB Access (ATM / Debit Card) .............................................16 HMB Auto Finance ...................................................................16 HMB Auto Lease ......................................................................16 HMB Call Account ....................................................................17 HMB Current Account ..............................................................17 HMB Education Loans .............................................................18 HMB Izafa Certificate................................................................18 HMB Multiplier Account ...........................................................18 HMB Mahana Scheme ............................................................19 HMB Personal Loans ............................................................19 HMB Saving Account ............................................................19 PLS Saving Account with Free Life Insurance..........................20 Super Current Account ............................................................ 20

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xxi.

HMB MAKRO Prepaid Card......................................................21

Services ..........................................................................................22 Cash Management Services ......................................................22 E-Salary Accounts .....................................................................22 HMB Call Centre .........................................................................23 HMB GSM Mobile Banking .........................................................23 HMB Rent Free Lockers .............................................................24 HMB Tele Info Service ...............................................................24 HMB Web Info Service ...............................................................24 POS (Point of Sale) Machine ......................................................25 Short / Long Term Finance ........................................................25 Financials..........................................................................................28 Branches & ATMS ............................................................................29 Electronic Banking ............................................................................30 Internet Banking............................................................................30 Phone Banking ...........................................................................30 International Banking .........................................................................31 Corporate Bank Network................................................................31 Foreign Remittances......................................................................33 Swift Banking ...............................................................................36 Islamic Banking...................................................................................37 HMB Islamic Banking.....................................................................37 Islamic Banking Products...............................................................38

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Financing Products.........................................................................38 Islamic Banking Branches..............................................................38 Shariah Adviser..............................................................................39 Rates & Exchange .............................................................................39 Deposit Rates................................................................................39 Exchange Rates............................................................................40 Corporate Information Snap Short......................................................43 SWOT ANALYSIS...............................................................................45 PEST ANALYSIS………………………………………………………….49 RISK MANAGEMENT……………………………………………………..51 RECOMMENDATIONS……………………………………………………53 CONCLUSION……………………………………………………………..54

Economic and banking review During the year 2009, our country s trade balance reflects healthy improvement mainly on account of reduced cost of imports. With the International Monetary Fund s Stand-By Arrangement (SBA) and a commitment expressed by the global community to extend monetary aid to Pakistan, the country s foreign exchange reserves have increased significantly, although the rupee continues to depreciate against the dollar. Weakening domestic demand, reduced commodity prices and lower government borrowing from the SBP has also led to a reduction in core inflation. The country s stock exchanges have managed to regain the

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investors confidence after dismal look in 2008 and the market index reflects a positive sentiment. Further, remittance inflows from overseas Pakistanis have remained strong which provided positive support to the economy. These factors, as well as several ongoing policy and structural reforms resulted in improvement in Pakistans international ratings by Moody s from Negative to Stable outlook. Although the potential economic crisis has been averted and the economy has stabilized, the country s manufacturing and export activities continue to remain under pressure. Power shortage remains a fundamental detriment to economic growth for which various short and long-term measures are being taken by the government. This is a matter of utmost priority as the rising costs of input needs to be kept under control to compete in the international markets. The economy is also facing severe pressure due to the ongoing war on terror and the rehabilitation of Internally Displaced Persons (IDPs).

Habib Metropolitan Bank History & Introduction Habib Metropolitan Bank was incorporated in Pakistan as a Public Listed Company in 1992 under the name, Metropolitan Bank Limited. The Bank

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commenced, duly licensed, full scheduled commercial-banking operations in October 1992. Metropolitan Bank, from October 1992 to September 2006, remained a highly rated bank and, vide its nationwide 51-branch on-line network, established as a distinguished provider of trade finance services. On October 26, 2006 Habib Bank A G Zurich’s Pakistan Operations merged into Metropolitan Bank Limited and the merged entity was named Habib Metropolitan Bank Limited (HMB). Demonstrating a strong commitment to Pakistan economy, HBZ is the principal shareholder of HMB. HMB operates in all major cities of the country. The Bank ranks within Top 10 in Pakistan with a strong vision to be the most respected Financial Institution. HMB has its primary focus on retail banking and trade finance and also offers highly innovative E-Banking solutions and Consumer Banking to its customers. The Bank’s Islamic Banking Division is fully capable of catering to customers seeking Shariah compliant products. The HBZ Group is heir to a rich tradition of banking and commerce dating back to more than 160 years. The group’s flagship and HMB’s principal, HBZ (incorporated 1967) enjoys International ranking of 687 in terms of capital. With Headquarters in Switzerland, the HBZ Group also operates in Hong Kong, Singapore, United Arab Emirates, Kenya, South Africa, United Kingdom and North America. The Pakistan Credit Rating Agency (PACRA) has allotted both long-term and short-term ratings of Habib Metropolitan Bank Limited at “AA+” (Double A plus) and “A1+” (A one plus), respectively. These ratings, being the highest amongst the local sector Private Banks, denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.

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Vision Statement “Based on a foundation of trust,to be the most respected financial institution,delighting customers with excellence,enjoying the loyalty of a dedicated team,meeting the expectations of regulators and participating in social causes while providing superior returns to shareholders.”

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Mission Statement

"The Mission of the Habib metropolitan Bank is to foster a sound economic and financial environment which promotes the development of its stakeholders and encourages a culture of excellence and leadership."

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PACRA MAINTAINS RATINGS OF HABIB METROPOLITAN BANK LTD. (HMB) The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term entity ratings of Habib Metropolitan Bank Ltd. at “AA+” (Double A plus) and “A1+” (A one plus) respectively. These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.The ratings reflect the strong position of the bank in its respective niche – self-liquidating trade finance to corporate and SMEs. While consolidating its strength, the management continues to focus on product innovation, enhanced reach through network expansion, and technology up-gradation for ensuring quality services to its customers, thereby retaining its relative positioning in the face of intensifying competition within the sector. The bank continues to maintain outstanding asset quality – an outcome of conservative risk appetite as well as effective risk management. The ratings also take into account the bank’s association with a geographically diversified international sponsoring group – Habib Bank AG Zurich (HBZ). About the bank: HMB, commencing operations in 1992, is listed on all bourses of Pakistan. Subsequent to recent merger, the bank is a 51% owned subsidiary of HBZ, incorporated in Switzerland. HBZ, with consolidated assets of above US$6bln, has operations in eight countries directly and through subsidiaries. This provides inherent strength to the bank given high credibility and standing of HBZ. The Chief Executive of the bank is a former Governor of

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the State Bank and also a former president of Habib Bank Limited, one of the largest banks in the country. A highly professional team of senior executives including the executive director, who has emerged as the key professional in evolving the bank’s strategy as well as its implementation, assists the chief executive.The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity.PACRA’s comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate grading. PACRA’s opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security’s market price or suitability for a particular investor.

Achievements These above credit ratings denote ➢ ➢ ➢ ➢

HMB is one of the top ten banks in Pakistan A very high credit quality, A very low expectation of credit risk and A very strong capacity for timely payment of financial commitments.

Corporate Information: Board of Directors Chairman & President Kassim Parekh ➢

Chief Executive Anjum Iqbal ➢

Directors Muhammad H.Habib ➢

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Raza S. Habib Bashir Ali Muhammad Anwar H. J apanwala Ronaid V. Emerson Firasat Ali Mohamedali R. Habib (Executive Director) Audit Committee Reza S. Habib ➢

Kassim Parekh Mohamedali R. Habib Company Secretary Muhammad Imran ➢

COMPETITORS: ➢ Arif Habib Bank ➢ MCB ➢ Bank al Habib ➢ National Bank of Pakistan

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➢ Bank Alfalah ➢ Standard Chartered Bank

PRODUCTS 1. HMB

Premium Deposit Scheme:

HMB now offers yet another highly attractive investment opportunity for our valued account holders. HMB Premium Deposit Scheme offers profit rates up to 12.35% per annum. You may deposit your funds for 1, 3 & 5 years, with quarterly and half yearly profit payment options to suit your need. Who can avail this Opportunity?

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There are no restrictions as to the eligibility of depositors and the scheme is open for any investors / account holder. Indicative Profit Rates: On a deposit of Rs. 100,000/- the profit will be paid as under. Tenor Rate p.a 1 Year 3 Year 5 Year

Quarterly Profit Half Yearly profit Amount (Rs) Rate p.a Amount (Rs) 12.00% 3,000 12.20% 6,100 12.20% 3,050 12.30% 6,150 12.30% 3,075 12.35% 6,175

Amount of Deposit: Minimum investment amount is Rs. 25,000/- (Rupees Twenty Five Thousand Only). The funds can be placed in multiples of Rs. 5,000/- as per customer’s needs. Profit Payment: Profit will be paid on Quarterly or Half yearly basis as per customer decision at the time of booking the deposit. Profit will be credited directly to you’re PLS Savings / Current account and can be withdrawn by HMB Access ATM/Debit Card or Cheque book. Maturity: Upon maturity, principal plus profit payable will be credited to your link account unless rollover instructions are given at least 3 (Three) working days before maturity. Zakat, Withholding Tax & Other Levies: All payments will be subject to Zakat (as per rules), withholding tax and other government levies as applicable from time to time. Easy Loan Facility:

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The loaning facility offered is essentially of temporary nature and the account holder(s) can obtain the loan up to 80% of the amount placed in the scheme. Premature Encashment: A premature encashment fee will be levied for premature withdrawal of funds from the scheme. The rate of the fee will be 2% of the deposit amount or the amount of profit already paid until the date of premature withdrawal, whichever is lower. The net amount after deduction will be credited in the customer’s account.

2.Basic Banking Account Account Opening with Rs. 1,000/No minimum balance required. Non-remunerative account. First cheque book of 25 leaves issued free of charge. Additional cheque book(s) at Rs. 100/- per book. ✔ No limit on number of ATM / Deposit transactions. ✔ Two cheque transactions will be allowed free per calendar month. Charge of Rs. 25/- per cheque will be applied from the third cheque onwards. ✔ Free Services ➢ ATM / Debit Card ➢ Web Info & Tele info ➢ Yearly statement of account ➢ Online Funds Transfer ✔ ✔ ✔ ✔

3: HMB Access (ATM / Debit Card) ✔ HMB Debit Cards are FREE, and available to our valued clients at all HMB branches. ✔ Make transactions up to the credit balance available in your account ✔ Withdraw cash through convenient POS terminals at all HMB branches ✔ Debit card Merchant list ➢ Karachi ➢ Lahore ➢ Islamabad

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✔ Guidelines ➢ Card Holders Guideline ✔ Download Forms ➢ Download E-Banking Form ➢ MNET Atm Claim Form

4: Habib Auto Financing ✔ HMB Auto Finance is available up to Rs. 3 Million.

✔ Minimum Down Payment is 15% of the total amount. ✔ Processing Fee is Rs. 4,000/-. ✔ Vehicle to be registered in the name of customer and marked HPA with the Bank.

5: Habib Auto Leasing ✔ HMB Auto Leasing is offered to all our Commercial & Corporate Clients. ✔ Minimum down Payment is as low as 10% of the total amount. ✔ Auto lease limit depends on the strength of the Company’s financials and credit checks. ✔ A Processing fee is charged at 0.5% of the Lease amount. ✔ The Vehicle is to be registered in the name of the Bank ✔ The Insurance cost to be borne by the customer.

6: HMB Call Account ✔ Placements can be made in multiples of Rs 100,000. ✔ Account can be linked to any of the regular accounts. ✔ A profit earning account. ✔ Funds can be placed overnight ✔ Funds can be transferred to and from the account overnight for placements. ✔ Free Services ➢ Cheque Book(s) ➢ Statement of Account ➢ HMB ATM / Debit Card

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➢ Stop payment of Cheques ➢ Pay Order ➢ Web info & Tele info Services

7: HMB Current Account ✔ The minimum amount required to open the account is Rs 5,000/✔ Minimum balance to maintain in the account is Rs 1,000/✔ This is a checking account with no limit on the number of transactions ✔ No profit is paid in this account ✔ There are no deduction of Zakat or any levies on this account. ✔ Free Services ➢ Cheque Book(s) ➢ Statement of Account ➢ HMB ATM / Debit Card ➢ Web info & Tele info Services ➢ Pay Order

8: HMB Education Loans ✔ Financing for Education Loans are available for

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Graduation Post Graduation PHD Diploma courses Financing for Tuition fee, Books and materials. A Mark–up is charged at concessional rate. There is No processing fee. Convenient repayment options are offered. The Tenor is from 6 to 60 months.

9: HMB Izafa Certificates ✔ Izafa Certificates are issued in multiple(s) of Rs. 10,000/-, Rs. 25,000/-, Rs.100,000/-, Rs. 250,000/-, Rs. 1,000,000/- and Rs. 2,500,000/-. ✔ HMB Izafa certificates are offered as 7 years Deposits Certificate.

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✔ ✔ ✔ ✔ ✔ ✔ ✔

Offering attractive Profit rates upto 14.29 % p.a Investment doubles in Seven years. Easy Loan Facility. Encashable any time. No Penalties. Your profits grow daily. Can be linked to any of the regular accounts.

10: HMB Multiplier Account ✔ The minimum amount required to open and maintain the account is Rs. 1 Million. ✔ Profit is accrued on a DAILY product basis and credited to your account monthly. ✔ Accrual of Profit is on balance of Rs. 1 Million and above. ✔ Profit Rates ✔ In case balance of Rs. 1 Million not maintained for any day profit will be paid @ 5.00% p.a. for the month. ✔ Free Services: ➢ Cheque Book(s) ➢ Statement of Account ➢ HMB ATM / Debit Card ➢ Stop payment of Cheques ➢ Pay Order ➢ Web info & Tele info Services

11: HMB Mahana Scheme ✔ 1,3 & 5 year Deposit Schemes in multiples of Rs. 25,000/- & Rs. 100,000/✔ Easy loan facility. ✔ Encashable any time. ✔ Monthly Profit credited to your account automatically.

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12: HMB Personal Loans ✔ Clean loans are offered up to Rs. 500,000/- . ✔ A Processing Fee of 1% of the loan amount or Rs. 2,000/- is charged, which ever is higher.

13: HMB Saving Plus Account ✔ ✔ ✔ ✔ ✔

Eligibility : Individuals Only Initial Deposit : Rs. 25,000/Indicative profit rates Profit payment basis : Minimum balance during a month Profit payment frequency : Quarterly Basis

✔ + Free Services

➢ ➢ ➢ ➢ ➢ ➢

Cheque Book Payment Orders Statements of Account ATM / Debit Card Web Info & Tele info Online Funds Transfer

14: PLS Saving Account (Free Life Insurance) The minimum amount to open and maintain this account is Rs. 1,000/-. The minimum amount to maintain this account is Rs. 500/-. Free life Insurance cover. Free insurance is equal to the average six monthly balances in case of death. ✔ The minimum qualifying average balance for Life Insurance is Rs. 15,000/-. ✔ The maximum sum assured is Rs. 1,000,000/✔ ✔ ✔ ✔

✔ Free Services

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➢Cheque Book(s) ➢Statement of Account ➢HMB ATM / Debit Card ➢Web info & Tele info Services ➢Pay Order

15: HMB Super Current Account ✔ The minimum amount required for opening and maintaining this account is Rs. 100,000/✔ This is a current account, which can be operated from any HMB branch nationwide. ✔ Cheques are acceptable at all HMB branches across Pakistan. ✔ A non remunerative account. ✔ No deduction of Zakat or any levies on this account. ✔ Free Services ➢ Cheque Book ➢ Payment Orders ➢ Statements of Account ➢ ATM / Debit Card ➢ Web Info & Tele info ➢ Online Funds Transfer ➢ Rent Free Lockers

16: HMB MAKRO Prepaid Cards HMB and Makro Co-branded Prepaid Cards: Convenient, Secure and Effective.HMB and Makro-Habib Pakistan have together launched a prepaid card program. As you are already aware, Makro is one of the leading international chains of wholesale stores in the world; in Pakistan, they have entered into a joint venture with the House of Habib to establish and run Makro stores.This card program carries two exciting products namely the Gift Card and the Shopping Card which can both be used exclusively to make purchases at all Makro stores in Pakistan. The prepaid cards are issued free of cost and can be purchased from all Makro stores or any HMB Branch in Karachi and Lahore through cash or by

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debit to your HMB account by issuing a requisition letter signed by the designated account signatories. In Pakistan, Makro Stores are located at: Manghopir Road, Karachi Lines Area, Karachi Stargate, Karachi Ravi Road, Lahore Model Town, Lahore. Salient features ➢ ➢ ➢ ➢ ➢

Prepaid Gift card: ✔ The Gift card has a fixed value of Rs 1,000 and is a disposable card. ✔ Available at all Makro stores; for purchases over Rs 10,000, please visit nearest HMB branch in Karachi & Lahore.Provides well-structured, hassle-free solutions to your home or business for extending benefits to your employees. ✔ These benefits may be part of their monthly wages, payrolls or periodic bonuses. ✔ Gift card is most ideal to channel your social contributions to the underprivileged by eliminating the risk of any misuse. Prepaid Shopping card: ✔ The Shopping Card carries value of Rs 10,000 which can go up to Rs 250,000 in multiples of Rs 5,000. ✔ This is a multiple-use, reload able card. ✔ Carries great benefit for your family or business to make daily/periodic purchases with no risk of cash losses or misuse. ✔ Check your shopping card balance & latest transactions by calling toll free at our Bank’s 24/7 Call Centre 0800-Habib (42242). ✔ If the card is lost, the same may be blocked and re-issued through our Call Centre.

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1: Cash Management Services ✔ This Service is best suited for Corporate clients with Rs.500 Million and above in local Sales and collections. ✔ Service involves Bulk collection of cash and cheques from all over Pakistan where HMB branches are available. ✔ Funds are collected and credited to customer’s accounts (cash/transfer) the same day through Online Banking supported by the state of the art hPLUS technology. ✔ Customers benefit with outright savings of time & money. ✔ Product is very competitively priced. ✔ Up to date tracking of funds with online reports available through web info and tele info services.

2: E-Salary ✔ Through this service Salary disbursement to the employees of our

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

valued corporate customers is done electronically. The Opening and maintenance of all salary accounts are managed form a central location. There are no charges on minimum balance in salary accounts. The individual Salary accounts are also eligible to apply for HMB Personal & Auto Loans. All banking services that include Electronic fund transfer (EFT), Demand Draft (DD), Telegraphic Transfer (TT) are available to eSalary account holders. The Minimum monthly salary disbursement per corporate customer is Rs. 1 Million. Charges per salary Rs. 50/- or minimum of Rs. 5,000/-. Free ATM / Debit Cards will be issued to all e-salary customers at the time of opening accounts. Free Web/Tele info services to facilitate balance inquiry and other services 24/7

3: 24 Hours Call Center ✔ 0800 – HABIB (42242) ✔ 24 hours card blocking of HMB access (ATM /Debit Card) in case of loss or theft.

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✔ Location of branch addresses, telephone numbers, fax and ATM points. ✔ Various departments in the Head Office with contact details ✔ Tele info and Web info Services, Deposit Products and Rates offered on various tenors and types of accounts. ✔ Products and Services e.g. General Banking, Consumer Finance, Schedule of Charges etc.

4: HMB GSM Mobile Banking We are pleased to introduce HMB mobile banking facility, which would be available on request to all our existing and new account holders. Account holders who subscribe to this facility would receive SMS messages on their designated mobile phones for all types of transactions that they had requested. Following inquiries can be requested by the customers for their accounts. ➢ Balance Inquiries 1. Daily Balance 2. All Debit Balances 3. Debit Balance Over Amount 4. Debit Balance Below Amount 5. Credit Balance Only 6. Credit Balance Over Amount 7. Credit Balance Below Amount

➢

Transaction Inquiries 1. All Transactions 2. All Debit Transactions 3. Debit Transactions Over Amount 4. Debit Transactions Below Amount 5. All Credit Transactions 6. Credit Transactions Over Amount 7. Credit Transactions Below Amount

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➢Other Inquiries 1. Inward Remittances 2. Other Bank’s Cheque Cleared 3. Other Bank’s Cheque Returned 4. Your Cheque Cleared 5. You’re Cheque Returned 6. PAD Logged

( Amount refers to any amount specified by the account holder)

5: HMB Rent Free Lockers ✔ ✔ ✔ ✔

Secure Rent Free Lockers Refundable security deposit Available in, Size Security Deposit Small

Rs. 20,000

Medium

Rs. 35,000

Large

Rs. 60,000

Extra Large

Rs. 100,000

6: HMB Tele Info Service ✔ Dial 0800 HABIB / 0800 42242 ✔ Instant access to the information you need at any time, from anywhere. ✔ Tele info is a 24 hour telephone banking service to give you information

you need – easily, instantly.

✔ Following services can be accessed 24/7 ➢ Account Balance ➢ Cheques in Clearing. ➢ Indicative Foreign Exchange Rates. ➢ Faxed back account statements.

7: HMB Web Info Service Page | 27

✔ Online Banking. ✔ Access your account from your home or office or anywhere in the world. ✔ Login through web info username and password. ✔ Login through your HMB ACCESS (ATM/Debit Card). ✔ Following services can be accessed 24/7 ➢ Up-to-date Account Balance. ➢ Cheques in Clearing. ➢ Account statement. ➢ Indicative Foreign Exchange Rates.

8: POS (Point of Sale) Machine ✔ Now you can withdraw cash from all HMB branches cash counters

easily and without any delay.

✔ Each HMB branch is now equipped with a POS machine available on

their Cash Counters. ✔ No need to issue cash cheques and no need to wait. ✔ Cash can be withdrawn up to Rs. 250,000/- via HMB ACCESS (ATM / Debit card).

9: Short Term and Long Term Finance The bank also offers short term working capital financing including under sharia compliant modes, exports/import financing and long-term finances to Corporate/Commercial customers as well as SMEs trade & industry. It also extends Agricultural credit; specialized financing tailored to customer’s needs and is also a regular member of Syndicated financing club

SPECIAL SERVICES House of Habib Flood Efforts HOH has donated Rs. 10 million to the Prime Minister’s Relief Fund for the flood affecters. In addition, 2000 Swedish water purifiers (Life Straw) costing Rs. 2,500/- each were distributed for ensuring potable water to the affecters

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apart from 2500 sachets of water purifiers. The cost of both these items aggregated to Rs. 5.1 million. In Muzaffargarh alone, approximately 900 families were registered for aid. Issuance of ration cards and distribution commenced from the mills of HOH. For tankers of drinking water is supplied daily to the relief camps set up by different agencies and NGOs. A medical camp was set up at Basti Nawan in collaboration between HOH, Team Rubican and PMA; about 1200 people were treated

SPECIAL SERVICES (Cont’d) In these camps. The two medical teams consisted of four doctors from Team Rubicon (an NGO of USA) and three female, three female doctors along with 3 paramedics from Pakistan Medical Association. The documentary by CNN on flood and relief work was aired on 8th and 9th September, 2010 from 4- 7 p.m (PST) showing the medical camps that were set up in collaboration with HOH. House of Habib Flood Efforts In Sindh the relief operations have been undertaken in Hyderabad, thatta/ keti Bandar and karampur, a town near sukkur. Food ratios for 350 families and medication for 750 people were sent to karampur. In Hyderabad (Habib Faram vicinity) a clinic was established on 1st September 2010, and medical treatment is being continuously provided to the flood affecters through it. Food family packs have been distributed to 450 affected families which would sustain them for two weeks. Registration of affected families has been done for rehabilition stage/ efforts. In Punjab 10, 000liters of drinking water is being supplied daily to relief camps set up different agencies and NGOs. 343 family food packs were distributed just before Eid-ul-Fitr. Post Eid phase of relief efforts started from 15th

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September 2010, with a medical cam being set up with the help of an NGO (HOPE) in Muzaffargarh. Water purifiers were also distributed to the affected people of the area. For the flood affected, the House of Habib has so far served 19, 427 hot meals, distributed family food packs to 32, 268 people, provided 670, 000 liters of drinking water apart from medical assistance to 21,879 people. So far it has collected Rs. 103 million for this noble cause out of which has already been utilized. This outstanding performance can only be lauded.

Financials: Year over year, Habib Metropolitan Bank Limited has seen their bottom line shrink from 3.3B to 2.7B despite an increase in revenues from 3.0B to 3.2B. An increase in the percentage of sales devoted to SGA costs from 98.56% to 106.93% was a key component in the falling bottom line in the face of rising revenues.

Currency in Millions of Pakistan Rupees

TOTAL REVENUES

As of: Dec 31 2006

Dec 31 2007

Dec 31 2008

Dec 31 2009

Restate d PKR

Restated PKR

Restated PKR

PKR

4,495.5

6,458.9

8,016.6

7,883.7

Cost of Goods Sold

109.7

69.3

113.4

116.9

GROSS PROFIT

4,385.8

6,389.6

7,903.2

7,766.8

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Selling General & Admin Expenses, Total

1,240.2

2,184.8

2,989.1

3,431.0

EBT, EXCLUDING UNUSUAL ITEMS

3,144.4

4,204.4

4,767.0

4,229.4

--

--

--

-2.7

3,144.4

4,204.4

4,767.0

4,226.7

Income Tax Expense

1,047.2

1,407.0

1,471.9

1,480.2

Earnings from Continuing Operations

2,097.2

2,797.4

3,295.1

2,746.6

2,097.2

2,797.4

3,295.1

2,746.6

NET INCOME TO COMMON INCLUDING EXTRA ITEMS

2,097.2

2,797.4

3,295.1

2,746.6

NET INCOME TO COMMON EXCLUDING EXTRA ITEMS

2,097.2

2,797.4

3,295.1

2,746.6

Merger & Restructuring Charges

EBT, INCLUDING UNUSUAL ITEMS

NET INCOME

Another table of financials

For the Year

Dec '09

Dec '08

Dec '07

Dec '06

Dec '05

Dec '04

(Rupees in million) Shareholders Equity

18,889

16,150

13,359

10,665

5,093

3,588

7,528

6,022

5,018

3,005

1,560

1,200

Total Assets

237,412

182,711

172,867

148,668

79,564

67,891

Deposits

142,457

128,433

121,141

102,493

56,713

48,596

Advances

102,293

108,261

89,827

83,324

43,519

40,122

Investments

111,680

53,632

61,736

39,556

22,804

15,560

Paid-up Capital

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Profit before Tax

4,214

4,764

4,045

3,143

2,098

1,411

Profit after Tax

2,739

3,293

2,964

2,096

1,506

835

3.64

5.47

5.37

9.32

9.65

6.95

67 (B)-I* 20 (B)-F* 10 (C)-F*

-

33.33 (B)

30 (B)

Earnings Per Share Dividends (%)

16 (B) 10 (C)

25 (B)

No. of Staff

2,695

2,473

2,300

1,963

1,143

1,045

120

110

100

82

51

47

No. of Branches

‘I ‘= interim and ‘F’= financials

Branches and Atms:

Page | 32

➢ Over 150+ branches in 21 citiesof Pakistan ➢ Over 110+ online branches ➢ 101+ ATM machines are operated

in the country

➢ HMB operates in more than 20 countries across the world.

Electronic Banking: 1:Phone Banking ✔ Dial 0800 HABIB / 0800 42242 ✔ Instant access to the information you need at any time, from anywhere. ✔ Tele info is a 24 hour telephone banking service to give you information

you need – easily, instantly. ✔ Following services can be accessed 24/7 ➢ Account Balance. ➢ Cheques in Clearing. ➢ Indicative Foreign Exchange Rates. ➢ Faxed back account statements.

2:Internet Banking (Online Banking) Page | 33

✔ Access your account from your home or office or anywhere in the

world.

✔ Login through web info username and password. ✔ Login through your HMB ACCESS (ATM/Debit Card). ✔ Following services can be accessed 24/7 ➢ Up-to-date Account Balance. ➢ Cheques in Clearing. ➢ Account statement ➢ Indicative Foreign Exchange Rates.

International Banking: 1: Correspondent Bank Network Habib Metropolitan Bank Limited HEAD- OFFICE INTERNATIONL DIVISION COUNTRYWISE LIST OF BANKS TO BE USED FOR IMPORT LC ADVISING

Page | 34

COUNTRY BANK AFGHANISTAN STANDARD CHARTERED BANK

COUNTRY BANK CZECH. REP. COMMERZBANK AG HSBC BANK PLC

ARGENTINA BBVA ‐ BANCO FRANCES

AUSTRALIA

DENMARK DANSKE BANK A/S

D E

EGYPT

HSBC BANK AUSTRALIA LIMITED

AUSTRIA

BNP PARIBAS LE CAIRE (FORMERLY BANQUE DU CAIRE ET DE PARIS)

JPMORGAN CHASE BANK, N.A.

ESTONIA

UNICREDIT BANK AUSTRIA AG

ETHIOPIA

NORDEA BANK FINLAND PLC ESTONIA BRANCH

FINLAND BAHRAIN

RAIFFEISENLANDESBANK

OBEROESTERREICH

CITIBANK INTERNATIONAL PLC, FINLAND BRANCH

UNITED BANK LTD BANGLAD

ESH BANK ASIA LIMITED

FRANCE

NORDEA BANK FINLAND PLC BNP‐PARIBAS SA (FORMERLY BANQUE NATIONALE DE PARIS S.A.)

HSBC

BELGIUM

SHAHJALA L ISLAMI BANK F O R T I S

BRAZIL

GERMANY

COMMERZBANK AG STANDARD CHARTERED BANK DZ BANK AG DEUTSCHE ZENTRAL GENOSSENSCHAFTSBANK HSBC TRINKAUS UND BURKHARDT AG

B CITIBANK NA

BULGARIA CITIBANK NA CANADA

GREECE

HABIB CANADIAN BANK

HSBC FRANCE (FORMERLY HSBC CCF) COMMERZB ANK AG

UNICREDIT BANK AG

CITIBANK INTERNATIONAL PLC ‐ GREEK BRANCH BNP PARIBAS GRECE UNICREDIT BANK AG

Page | 35

KUWAIT CITIBANK NA

SWITZERLAN HABIB BANK AG ZURICH B N P

KYRGYZSTA N NATIONAL BANK OF PAKISTAN QATAR

BISHKEK BRANCH DOHA BANK

ROMANI

TAIWAN

STANDAR D CHARTERE ING BANK N.V., BUCHAREST BRANCH

JPM ORG AN CHA SE BAN

RUSSIA CITIBANK, MOSCOW SAUDI ARABIA

P CITIBANK TAIWAN LIMITED

TANZANIA JPMORGAN CHASE BANK BANQUE SAUDI FRANSI

THAILAND

STANDARD CHARTERED BANK TANZANIA LTD CITIBANK NA

BANK AL‐JAZIRA

HSBC TUNIS

SINGAPORE CITIBANK NA HSBC

CITIBANK NA TURKEY

2: Foreign Remittances ✔ Global remittance facility available through our extensive correspondent bank network. ✔ Need assistance for remittance of funds to Pakistan ✔ Please select one of the following formatted letters for presentation to your bankers ➢ For Remittances in GPB Date: _________________ for GPB The Manager ____________________ ____________________ ____________________

Page | 36

Dear Sir, Please debit my Account No. __________________With you, and remit a sum of GBP_____PoundSterling_________________________________________ ______________________________________________________________ ___________________ To Habib Bank AG Zurich Habib House 42 Moorgate London EC2R 6JJ UK For credit to A/C No: 7-1-1-20110-402-19601 SWIFT: MPBLPKKA Habib Metropolitan Bank Limited I.I. Chundrigar Road Karachi For further credit to Branch Name: _________ Account No: ____________ Account Name: ____________ Yours faithfully ➢ For Remittances in USD Date: _________________

FOR USD

The Manager ________________ ________________ ________________ Page | 37

Dear Sir, Please debit my Account No._____________with you, and remit a sum of US$__________________________US Dollars________________________ ______________________________________________________________ ______ To Habib American Bank 99. Madison Avenue New York- U.S.A. For credit to A/C No: 2072-9532 SWIFT: MPBLPKKA Habib Metropolitan Bank Limited I.I. Chundrigar Road Karachi For further credit to Branch Name: ____________ Account No: ______________ Account Name: _____________ Yours faithfully ➢ For Remittances in Euro Date: ___________

FOR EURO

The Manager __________________ __________________

Page | 38

__________________ Dear Sir, Please debit my Account No. _______________with you, and remit a sum of EURO____________________EURO_______________________________ ______________________________________________________________ ________________ To Commerz bank A.G Kaiserplatz, Frankfurt, Germany. For credit to A/C No: 50040000/400880742200 SWIFT: MPBLPKKA Habib Metropolitan Bank Limited I.I. Chundrigar Road Karachi For further credit to Branch Name: ________________ Account No: __________________ Account Name: ________________ Yours faithfully

3:SWIFT BANKING PAY TO:

US DOLLARS

Page | 39

1. Habib American Bank

Alc # 2072-9532

99, Madison Avenue

Routing No.ABA026007362

New York- U.S.A. New York 10016

Swift Code: HANYUS33

2. Citibank N.A

A/c # 36082351

New York- U.S.A.

Swift Code: CITIUS33

3. Standard Chartered Bank

A/c # 3582073088001

New York- U.S.A.

Swift Code:SCBLUS33

Page | 40

POUND STERLING PAY TO: 1. Commerzbank AG Kaiserplatz Frankfurt – Germany

Alc # 50040000/4008807422 00 Swift Code: COBADEFF

For credit to Account of (Beneficiary’s Bank) Beneficiary Customer

Habib Metropolitan Bank Ltd. Main Branch Karachi- Pakistan Swift Code: MPBLPKKA001 Customer A/c#_________ Name:________________

Page | 41

Islamic Banking: 1: Habib Metropolitan Bank -Islamic Banking Division Mission Our mission is to provide full range of Sharia’ah compliant products and services to our customers with no compromise on Sharia’ah rulings Introduction to Islamic Banking Division Habib Metropolitan Bank has developed sufficient expertise, necessary infrastructure, information technology, and manpower to run Islamic banking operation. Banking customers who wish to avail Islamic banking products and services are welcome to contact us to accomplish their banking requirements. Our Islamic Banking Division is headed by an experienced banker who is responsible for the over all operational activities of the Islamic Banking Division. The Division has the advisory services of reputable Shari’ah advisors who also help in developing Islamic Banking Products.

2: Islamic Banking Products Deposits Products ✔ Islamic Current Deposits Account Page | 42

✔ Islamic PLS Account ✔ Islamic Investment Certificates ✔ Historical Profit Rates ➢ Local Currency ➢ Foreign Currency

✔ Current Weight ages ➢ Local Currency ➢ Foreign Currency

3:Financing Products: ✔ Local murabahah for financing raw material for locally manufactured goods and local murabahah for financing finished goods for local traders. ✔ Local & import murabaha for financing raw material and finished goods for importers and exporters for trade finance. ✔ Ijara (Islamic lease) for financing equipments and machinery consumer and commercial vehicles. ✔ Ijara (Islamic lease) financing for consumer and commercial vehicles. ✔ Commercial property financing on diminishing musharakah basis. ✔ House financing on diminishing musharakah basis.

4: Islamic Banking Branches Branch

Al-Falah Court Branch

Zaibunnisa Street Branch Rashid Minhas Rd. Branch

Address

Ground Floor, Alfalah Court, I. I. Chundrigar Road, Karachi

SB-4/4, Zaibunnisa Street, Saddar, Karachi

Telephone

Fax

(021)2215361-63

(021)2215358

(021)5650711-4

(021)5650650

(021)4819985-86, 88

(021)4819989

Page | 43

F-L, 3/15, Block 5, Gulshan-e-Iqbal, Karachi

5: Shariah Adviser ✔ We have a prominent Islamic scholar as our Shariah Adviser who is a specialist in Islamic Fiqh and is qualified from renowned Islamic Academia. ✔ He is a Research Scholar affiliated with SBP and ICAP.and a member of various committees formed for promoting the cause of Islamic Banking in Pakistan and abroad.

Rates and Charges: 1: Deposit Rates Indicative Profit Rates payable on PLS Deposits Schemes effective from July, 21 2010. Type of Deposit

Rates per annum

PLS Savings Accounts SNTD

Term/Fixed Deposits

5.00% p.a. 7 days

5.00% p.a.

30 days & over

5.00% p.a.

1 month

6.00% p.a.

3 months

7.50% p.a.

6 months

8.25% p.a.

1 year

9.50% p.a.

2 years

10.00% p.a.

3 years

11.00% p.a.

4 years

11.25% p.a.

5 years

11.50% p.a.

Page | 44

Individuals only

HMB Savings Plus Accounts Up to Rs.100,000/Over Rs.100,000/- up to Rs.1 Million Over Rs.1 Million

5.00% p.a. 8.00% p.a. 5.00% p.a.

HMB Multiplier Accounts Up to Rs.1 Million Over Rs.1Million

-

5.00% p.a. 8.00% p.a.

for 6 years

16.67% p.a.

(i)For 1 year - min. placement Rs. 25,000 11.70%

Rs. 244 p.m.

(ii)For 3 years - min. placement Rs. 50,000 12.12%

Rs. 505 p.m.

(iii)For 5 years - min. placement Rs. 100,000 12.24%

Rs. 1,020 p.m.

HMB Izafa Certificate (With effect from December 1, 2010)

HMB Mahana Scheme (With effect from December 1, 2010)

TERMS OF USE ✔ In the case of term deposits not en-cashed on maturity, principal amount will automatically be renewed for the same period for which the Deposit was originally placed. ✔ On premature withdrawal of Term Deposits, the profit will be paid as per the rate applicable for period deposit held. ✔ All above Indicative Profit Rates are subject to Government of Pakistan Levies as applicable from time to time. ✔ In all above products Zakat / Govt. levies will be applicable as per rules. ✔ In case balance of Rs. 1 Million not maintained for any day profit will be paid @ 5.00% p.a. for the month.

2: Exchange Rates

RATES FOR PUBLIC PER UNIT OF CURRENCY COUNTRY

U.S.A. U.K.

SELLINGTT & OD BUYINGTT CLEAN BUYING O/DT/CHEQUES 85.8500

85.6500

85.4810

133.3680

133.0144

132.7438

Page | 45

CANADA

84.6981

84.4758

84.3280

AUSTRALIA

84.7597

84.7421

84.4143

1.022754

1.019764

1.017980

DENMARK

15.2038

15.1604

15.1338

SAUDIARABIA

22.8927

22.8382

22.7982

SWITZERLAND

88.5508

88.2899

88.1354

U.A.E.

23.3739

23.3182

23.2774

HONGKONG

11.0384

11.0117

10.9924

SINGAPORE

65.3597

65.1579

65.0438

SWEDEN

12.5651

12.4962

12.4743

2.8484

2.8380

2.8330

113.2190

112.9038

112.6821

JAPAN

THAILAND EURO

BILL BUYING RATES PER UNIT OF CURRENCY UNDER L/C PERIOD

U.S.A

U.K

AUSTRALIA

EURO

CANADA

30 DAYS

85.2276 132.3291

83.8993 112.3509

83.9182

60 DAYS

84.7630 131.5759

83.1156 111.7185

83.3968

90 DAYS

84.3406 130.8899

82.3346 111.1424

82.8723

120 DAYS

83.9182 130.1990

81.5794 110.5680

82.3763

150 DAYS

83.4958 129.5149

80.7734 109.9928

81.8333

180 DAYS

83.0735 128.7938

79.9538 109.4227

81.2781

OFFICIAL BUYING RATES FORWITHDRAWL FROM OLD F.C.A/C. PERIOD

U.S.A

Page | 46

U.S.A.

85.7950

U.K.

134.6724

JAPAN

1.020600

EURO

114.0902

RATE FOR CURRENCY NOTES

LIBOR FOR CALCULATING INTEREST ON SPECIAL US DOLLAR BONDS null

null

LIBOR

6 MONTHS US DOLLAR

0.4578

20.12.2010

KIBOR RATES One Week Two Weeks One Month Three Months Six Months Nine Months Twelve Months Two Years Three Years 12.54

12.77

13.11

13.41

13.61

13.95

14.11

14.21

14.32

Corporate Information Snap Short: Habib Metropolitan Bank Limited Company Snapshot Business Description:

Page | 47

Habib Metropolitan Bank Ltd. is a financial company engaged in commercial banking and brokerage services. Its products and services include HMB Access, HMB Auto Finance, HMB Auto Leasing, HMB Basic Account, HMB Call Account, HMB Current Account, HMB Education Loan, HMB Izafa Certificate, HMB Multiplier Account, HMB Mahana Scheme, HMB Personal Loan, HMB Savings Plus Account and PLS Savings Account with Free Life Insurance. The Bank operates 120 branches, including four Islamic banking branches in Pakistan. The Bank is a subsidiary of Habib Bank AG Zurich. The Bank's subsidiary, Habib Metropolitan Financial Services Limited, is engaged in equity brokerage services.

Wright Quality Rating: DLC1

Page | 48

At year-end, HMB s equity stands at Rs 18.9 billion at a comfortable 11.9% capital adequacy level against the required 10%. Stock Data:

Current Price (12/10/2010):

Recent Stock Performance:

25.65

1 Week

4 Weeks

2.1%

13 Weeks

22.4%

35.0%

52 Weeks

-1.5%

Page | 49

Habib Metropolitan Bank Limited Key Data: Ticker: HMB Country: Pakistan Exchanges: KAR Major Industry: Financial Sub Industry: Commercial Banks 2009 Sales

25,082,193,000 (Year Ending Jan 2010).

Employees: 1,659 Currency:

Pakistan Rupees

Market Cap: 22,397,400,450 Fiscal Yr Ends: December Shares Outstanding: 873,193,000 Share Type: Ordinary Closely Held Shares: 595,085,145

Page | 50

Page | 51

Page | 52

SWOT ANALYSIS: STRENGTHS: ✔ Large capital base. ✔ Rank in top 10 bank of Pakistan. ✔ Continuous growth in ROE. ✔ The bank’s management realizes the necessity of existence of effective internal controls to ensure smooth operations in the current technical and swift business environment. ✔ Loyal management. ✔ The bank has efficient and experienced management making significant. ✔ Credit rating in long-term “AA+” and in the short term “A1+”. ✔ The financial statements, prepared by the management of the bank present fairly the state of affairs. ✔ Loans are given only to known, reputable clients to avoid chances of fraud. Very low nonperforming loan. ✔ Effectively handled the current economic recession. ✔ Bank is continuously focusing on developing new and innovative products to attract their target market. ✔ Strong customer relationship. ✔ Asset utilization is very good.

WEAKNESSES: ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Only valued client is important. Bad portfolio diversification (54% advances to Textile industry) Advertisement on electronic media has not been seen. Declining standards of banking after merger. Inter- organizational conflicts after merger. Compromises upon polices to keep customers happy. Old Management. (No creativity) No further growth in branches. Majority of shares are owned by the one family. Low consumer finance. Less job satisfaction of employees. Customers facing problem of NADRA verification while opening their accounts because its process is time consuming.

Page | 53

✔ Promoting generally on seniority basis. ✔ Attitude of senior manager at head office has to change towards junior staff.

OPPORTUNITIES: ✔ Scope in Islamic Banking. ✔ To go global fully ✔ Low exposure to consumer banking providing opportunity to explore the segment. ✔ The year 2010 will prove to be another demanding year for the bank with scattered. Diversification, innovation and mission driven approach are the key to success which bank should adopt. ✔ Progressive but cautious business expansion with strategic branch network extension and introduction of innovative products in all areas of business. Branch network need extension. ✔ Should emphasize much on e-banking. Profit margin will be good. ✔ The bank being Swiss incorporated, it bank follows dual banking regulation i.e of Pakistan as well as Switzer-land which attracts foreign investors. ✔ SBP policy to allow Islamic Banking business separately. ✔ Bank introduces Islamic banking in country that attracts large number of people. ✔ Greater profitability can be achieved through strong internal control. ✔ New schemes for deposits and finances should be introduced regularly. ✔ Opportunity to open branch in ruler area to increase its branch network and gain more profit.

THREATS: ✔ Adverse impact of “Credit Crisis” can badly effect on HMB. ✔ Facing a strong competition by its competitors. High reliability on only one market segment i.e. Textile. (54%) ✔ Inconsistency in government policies. ✔ Increasing competition in the banking sector. Entry of many foreign banks. ✔ Strict policies of the State Bank of Pakistan. ✔ Geopolitical condition of country. Page | 54

✔ ✔ ✔ ✔ ✔ ✔ ✔

Global liquidity crisis has constrained banks to stop lending. Current economic crunch. Political instability. Rising deposit rates. Foreign banks in market having more marketing budgets. People losing trust in banks. Decline in private and public sector credit due to tight monetary policy.

Page | 55

Page | 56

PEST ANALYSIS ➢ Political:

Political instability can lead to changes in laws and policies which can be in favor or against the banking sector • • •

Monopolies Legislation Taxation Policy Foreign Trade Regulations

➢ Economic

Economy of Pakistan is facing issues about • Unemployment, • Inflation, • Illiteracy, • Corruption • Business Cycles • Interest Rate

all the above issues hinders business growth.

➢ Socio Cultural issues

Cultural issues can be there but still as there are a number of multinational companies there, therefore, culture issues are not prominent. • • • • •

Population Demographics Income Distribution Social Mobility Lifestyle Changes Levels of Educations

Page | 57

➢ Technological • •

• •

Speed of Technology Transfer New Discoveries / Development Investment on Research Rate of Obsolescence

RISK MANAGEMENT Credit risk: The HMB strategy is to minimize credit risk through a strong predisbursement credit analysis, approval and risk measurement process added with product, geography and customer diversification. The Bank, as its strategic preference, provides loans only to strong parties. Major portion of the Bank credit portfolio is Textile industry (54%) which is highly profitable business in Pakistan but it may riskier and not a good diversification of portfolio, if textile industry slump then it will crash the whole bank. The bank has very low rate of Non-performing loans. The ratios of risks are as under and we can see that they reduce the risk as per their objective.

Market Risk: Market risk is the possibility that fluctuation in interest rates, foreign exchange or stock prices will change the market value of financial products leading to a loss. The HMB has formalized liquidity and market risk management policies which contain action plans to strengthen the market risk management system.

Foreign Exchange Risk: Foreign Exchange Risk is the probability of loss resulting from adverse movement is exchange rates. The HMB is not in the business of actively trading and market making activities but a conservative risk approach and the Bank’s business strategy to work with export oriented (Textile) client’s gives the ability to meet its foreign exchange needs.

Interest rate risk:

Page | 58

Interest rate risk is the risk that the value of the financial instrument will fluctuate due to changes in the market interest rates. The HMB’s interest rate exposure is low due to the short-term nature of the majority of business transactions. Interest rate risk is also controlled through flexible credit pricing mechanism and variable deposit rates.

Liquidity risk: HMB manages the liquidity position on a continuous basis. The Bank’s liquidity position is based on “self reliance” with a wide branch network to expand the Bank deposit base. The Bank’s liquidity profile generally consists of short-term, secured assets, in line with the Bank’s credit strategy.

RECOMMENDATIONS

➢

Diversify the portfolio

Page | 59

➢

Introduction of new products/services in the market

➢

Hire new management

➢

Give importance to all customers

➢

Increase the branches all over the country

➢

Improve standard of banking

➢

Start advertisement as soon as possible

Conclusion ➢ Major factors like global financing disorder, economic slowdown and strict monetary policy were on the top but Pakistan bank caters all these problems. HMB is one of the top ten banks it is expected to play a major role in pioneering these newer markets. ➢ Currently, the banking sector is facing two major problems. The first one is the decline in credit demand due to slowdown in the economic activities due to poor law and order situation, power crisis, inflationary pressure, and high interest rates. The other problem is the mounting amount of NPLs (non-performing loans). With the exception of a few banks all the banks are exhibiting considerable rise in NPLs. These two issues are collectively dampening the banking sector s performance.

Page | 60

➢ HMB offers branch banking,e-banking,consumer banking

international banking and also offers Islamic banking to facilitate their cutomers

➢ At year-end, HMB s equity stands at Rs 18.9 billion at a comfortable

11.9% capital adequacy level against the required 10%. ➢ The credit ratings denote a very high credit quality, a very low

expectation of credit risk and a very strong capacity for timely payment of financial commitments.

Page | 61