Lahore, December 08, 2022 (PPI-OT):The ratings reflect Bank’s enduring and sustained emphasis on reinvigorating its relative position in the peer universe. Bank AL Habib has been portraying a history of stable and consistent growth for more than a quarter of a century. The Bank’s superior standing was witnessed in the global financial crisis almost a decade ago. The trend continued to this day and is reflected in the sound asset quality of the Bank. The Bank continued with its strategy for outreach expansion, adding significant branches every quarter to enhance geographical concentration. The rating reflects Bank’s improved performance, exceptional asset quality, strong financial profile and healthy liquidity.

The Bank’s customer deposits increased to PKR 1,497bln as of Sep’22 (Dec21: PKR 1,275bln), subsequently, Bank’s system share enhanced to ~7.0% (CY21: 6.5%). Advances base of the Bank recorded sizable increase to stand at PKR 815.0bln (CY21: PKR 733.8bln). CAR recorded dilution to 13.41% (end-Dec21: 13.48%). During 9MCY22, the Bank’s net profit increased to PKR 15.0bln (9MCY21: PKR 13.9bln) driven by increase in non-markup income. Trade finance is the Bank’s hallmark. Going forward, macro-economic environment is beset with myriad challenges due to heightened interest rate, rupee depreciation and higher inflation.

The rating is dependent on the Bank’s sustained risk profile. In the wake of heightened competition, profitable growth is a challenge while retaining the relative positioning in the industry. The equity base of the Bank and CAR are satisfactory and may continually be enhanced.

For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com