Flash Note: Habib Bank (HBL): 2017 Conference Call Notes
- Overall deposit growth of the bank witnessed during 2017 was 6%. Domestic Deposits were up 11.8% while there was contraction on the deposits of international book.
- HBL and also other banks have filed a review petition regarding the pension case as the final judgment is not clear. However, HBL does not expect the pension liability to increase beyond the stated range in the annual accounts which is Rs1bn to Rs4.5bn.
- The FX loss of Rs413mn in 4Q2017 was related to the foreign loans HBL had taken for the fine against New York Operations.
- The bank carried out revaluation of its land/properties which resulted in revaluation of land/properties by Rs10bn during 2017. Consequently, total revaluation surplus on consolidated books of HBL stood at Rs21bn in 2017 vs. Rs24bn in 2016 despite deficit of Rs408mn on revaluation of investments in 2017 (following downturn in equity markets and lower revaluation on PIBs).
- Bank targets to maintain its CAR ratio at 16% and for the purpose it may issue Additional Tier 1 Capital and may remain conservative in its payout ratio.
- Over Rs100bn high yielding PIBs will be maturing in July 2018. And weighted average maturity of Bank’s PIBs is 1.7 years.
- The management expects around 25bps hike in interest in upcoming monetary policy.
- Management expects advances growth of 13-14% going forward.
Habib Bank Limited is engaged in commercial banking and asset management related services in Pakistan and overseas. The Bank's segments include Branch Banking, which consists of loans, deposits and other banking services to agriculture, consumer, small and medium-sized enterprise (SME), and commercial customers; Corporate Banking, which consists of lending for project finance, trade finance and working capital to corporate customers and it also provides investment banking services, including services provided in connection with mergers and acquisitions; Treasury, which consists of trading, fixed income, equity, derivatives and foreign exchange businesses, and it also includes credit, lending and funding activities with professional market counterparties; International Banking, which is engaged in monitoring and reporting purposes and consists of its operations outside of Pakistan, and Head Office/Others. It operates in Pakistan; Europe, Middle East and America, and Asia and Africa.
Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.
Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.
Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.
JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).
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