habib bank limited- financial model

8/8/2019 Habib Bank Limited- Financial Model

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Habib Bank Limited.

FY04 FY05

Common Size Analysis

Mark-up / return / interest earned 100% 100%

Mark-up / return / interest expensed 25% 23%

Net mark-up / interest income 75% 77%

Provision against non-performing loans and advances - net 10% 9%

Charge / (reversal) against off-balance sheet obligations 3% 0%

Charge / (reversal) of provision against diminution in the value of investments -1% 0%

Bad debts written off directly 0% 0%

13% 9%

Net mark-up / interest income after provisions 63% 68%

Non mark-up / interest income

Fee, commission and brokerage income 14% 9%

Income / gain on investments 23% 5%

Income from dealing in foreign currencies 6% 4%

Gain on investments in associate

Other income 11% 6%

Total non-mark-up / interest income 54% 24%

117% 92%

Non mark-up / interest expense

Administrative expenses 76% 44%

Other provisions / write offs - net 1% 1%

Other charges 0.04% 0.21%

Workers welfare fund 0% 0%

Total non mark-up / interest expenses 77% 45%

Staff retrenchment cost 0% 5%

Profit before taxation 40% 48%

Taxationcurrent 2% 13%

prior years 0% 0%

deferred 6% 0%

8% 13%

Profit after taxation 32% 35%

Attributable to:

Equity holders of the Bank 98% 99%

Minority interest 1.55% 0.86%

100% 100%

M2 Growth YoY 17.0%

HBL Gross Markup growth 78%Correlation b/w HBL EBIT and M2 growth 0.54

Earning Ratios

ROA 1.18% 2.13%

ROE 22.63% 37.49%

ROD 1.42% 2.60%

Asset Quality Ratios

Non Performing Loans 44,506,433 41,360,353

NPL to Advances -17% -13%


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Provisions to NPL 75% 81%

Market Value Ratios

Price to Earnings #REF! #REF!

Market Value to Book Value #REF! #REF!

Debt Management

Debt to Equity 14.2 11.8

Debt to Assets 93% 92%

Deposit times Capital 12.63 10.50

Liquidity

Earning Assets to Assets

Advance to Deposit 64% 73%

Yield on Earning Assets

Cost of Funding Earning Assets 2,229 3,764

68.86%

Solvency

Equity to Assets 1,329 5,825

Equity to Deposits 16,636 42,244

Earning Assets to Deposits

Dividend Payout

Dividend per share 5184 5475

Dividend Yield 0.03% 0.01%

Dividend Cover

3045 3470

Other Ratios 0.02% 0.01%

Cost of funds

Intermediation cost 2,212 2,803

Net profit margin 0.02% 0.01%

Interest marginNet interest margin

2,229 3,764

3121 21902

5,350 25,666

Segment by sector %age of total

Public Sector / Government 10.01%

Private 90%

Total 100.00%


3/69

FY06 FY07 FY08 FY09 FY10 FY11 FY12

100% 100% 100% 100% 100% 100% 100%

30% 38% 42% 31% 33% 35% 32%

70% 62% 58% 69% 67% 65% 68%

7% 16% 11% 11% 11% 11% 12%

0% 0% 1% 1% 0% 0% 0%

0% 0% 3% 0% 1% 1% 1%

0% 0% 0% 0% 0% 0% 0%

6% 16% 15% 12% 12% 12% 13%

63% 46% 44% 49% 53% 55% 65%

9% 7% 7% 7% 6% 6% 5%

3% 5% 4% 6% 4% 3% 4%

3% 3% 4% 3% 3% 2% 2%

6% 5% 5% 4% 4%

5% 5% 5% 5% 4% 4% 4%

19% 20% 26% 23% 18% 17% 17%

83% 66% 69% 85% 79% 77% 75%

35% 36% 34% 45% 39% 38% 38%

0.28% -1% 0.32% 0.43% 0.25% 0.15% 0.12%

0.13% 0.17% 0.10% 0.13% 0.15% 0.13% 0.14%

0% 0.0% 1% 0.10% 0.12% 0.15% 0.18%

36% 36% 35% 46% 39% 38% 39%

4% 0% 0% 2% 2% 2% 1%

47% 30% 35% 40% 40% 38% 37%

16% 14% 14% 12% 14% 14% 14%

0% 3% 0% 1% 1% 1% 1%

-2% -8% -4% -1% -3% -4% -4%

14% 10% 10% 11% 12% 11% 11%

33% 20% 25% 29% 28% 27% 26%

99% 99% 99% 99% 99% 99% 99%

0.55% 0.83% 0.51% 0.86% 0.72% 0.69% 0.72%

100% 100% 100% 100% 100% 100% 100%

2.37%

14.0% 20.0% 15.0% 8% 9% 10% 10%

35% 16% 25% -13% 9% 1% 20%0.64

2.44% 1.33% 2.26% 1.68% 1.42% 1.22% 1.39%

38.48% 20.14% 34.84% 25.05% #VALUE! #VALUE! #VALUE!

3.14% 1.69% 2.94% 2.13% 1.79% 1.55% 1.77%

30,032,988 27,692,769 40,053,222 40,053,223 40,053,224 40,053,225 40,053,226

-9% -7% 9% 98% 19% 7% 6%


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73% 77% 70% 18% 87% 216% 229%

#REF! #REF! #REF! #REF! #REF! #REF! #REF!

#REF! #REF! #REF! #REF! #REF! #REF! #REF!

10.0 9.1 9.9 #VALUE! #VALUE! #VALUE! #VALUE!

91% 90% 91% 92% 92% 91% 91%

8.59 8.40 7.94 9.31 9.48 9.17 9.17

76% 72% 76% 6% 28% 69% 71%

9,601 15,915 22,281 31,193 43,671 65,506 163,765

155.07% 66% 40% 40% 40% 50% 150%

8,324 25,482 22,000 15,000 11,000 11,000 11,00064,231 206,570 206,504 218,559 300,000 388,709 388,709

4168 75 #REF! #REF! 302,644 334,358 74,600,615

0.01% #REF! 0.50% 0.50% 0.50% 0.50% 100.50%

3365 9390 #REF! #REF! 314,750 347,732 74,615,461

0.01% #REF! 0.50% 0.50% 0.52% 0.52% 100.52%

4,554 450 #REF! #REF! 487,836 522,616 50,891,018

0.01% #REF! 1.20% 1.20% 1.20% 1.20% 101.20%

5,834 6,316 #REF! #REF! #REF! #REF! #REF!

10316 2008 #REF! #REF! 15832118 10061434 11168488

16,150 8,324

9.91% 12.57% 14.47% 41% 26% 15% 15%

90% 87% 86% 59% 74% 85% 85%

100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%


5/69

FY13

100%

29%

71%

11%

0%

1%

0%

13%

91%

5%

3%

2%

4%

3%

16%

77%

39%

0.25%

0.13%

0.21%

39%

1%

38%

13%

1%

-3%

11%

27%

99%

0.70%

100%

10%

56%

2.18%

#VALUE!

2.77%

40,053,227

5%


6/69

241%

#REF!

#REF!

#VALUE!

91%

9.25

74%

573,179

250%

11,000388,709

165,533,293

200.50%

165,549,805

200.52%

118,515,993

201.20%

#REF!

9106391

11%

89%

100.00%


7/69

Habib Bank Limited

Profit & Loss Account

Rs. In '000 FY04 FY05Mark-up / return / interest earned 18,198,725 32,343,206

Mark-up / return / interest expensed 4,472,138 7,327,603

Net mark-up / interest income 13,726,587 25,015,603

Provision against non-performing loans and advances - net 1,887,552 2,974,665

Charge / (reversal) against off-balance sheet obligations 571,351 128,851

Charge / (reversal) of provision against diminution in the value of investments (151,218) (82,568)

Bad debts written off directly - -

2,307,685 3,020,948

Net mark-up / interest income after provisions 11,418,902 21,994,655


Fee, commission and brokerage income 2,510,433 2,938,000

Income / gain on investments 4,235,574 1,726,336

Income from dealing in foreign currencies 1,095,789 1,402,521

Gain on investments in associate - -Other income 2,020,506 1,787,443

Total non-mark-up / interest income 9,862,302 7,854,300

Total Mark-up + Non-Markup Income after provisions 21,281,204 29,848,955


Administrative expenses 13,781,291 14,095,063

Other provisions / write offs - net 244,950 249,033

Other charges 7,523 68,483

Workers welfare fund - -

Total non mark-up / interest expenses 14,033,764 14,412

Income before extra-ordinary item 15,436,376

Staff retrenchment cost - 1,602,401

Profit before taxation 7,247,440 15,436,376

Taxation

current 398,152 4,076,848

prior years 15,341 (39,397)

deferred 1,070,543 149,975

1,484,036 4,187,426

Profit after taxation 5,763,404 11,248,950

Attributable to:

Equity holders of the Bank 5,673,986 9,563,303

Minority interest 89,418 83,246

5,763,404 9,646,549

Number of shares 690,000 690,000

Basic and diluted earnings per share 8.21 13.86

Basic EPS 8.35 13.98

Dividend per share 0.50 1.00

DPO 6% 7%

Rentention Ratio 94% 93%


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Administrative cost

Salary

No of emplyees

Executives


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FY06 FY07 FY08 FY09 E FY10 E FY11 E

43,685,740 50,481,021 63,305,033 55,264,145 60,528,807 66,871,619

13,204,037 19,153,957 26,525,556 17,385,967 19,875,802 23,320,248

30,481,703 31,327,064 36,779,477 37,878,178 40,653,005 43,551,371

2,863,207 8,238,227 6,904,919 5,929,635 6,680,027 7,979,465

(45,438) (54,626) 372,598 432,635.51 188,558.19 196,699.12

(13,697) (84,310) 1,909,887 191,477 352,251 501,139

- - - - - -

2,804,072 8,099,291 9,187,404 6,553,747 7,220,836 8,677,303

27,677,631 23,227,773 27,592,073 31,324,430 33,432,169 34,874,068

3,931,710 3,420,051 4,518,408 4,048,944 3,808,258 3,908,577

1,219,623 2,472,663 2,369,233 2,319,681 2,356,068 2,396,721

1,102,358 1,487,374 2,374,318 1,731,138 1,616,287 1,607,395

- - 4,000,330 2,793,772 2,753,926 2,839,6752,235,805 2,643,076 3,116,522 2,821,184 2,509,101 2,624,250

8,489,496 10,023,164 16,378,811 12,700,829 10,888,167 11,355,518

36,167,127 33,250,937 43,970,884 44,025,259 44,320,336 46,229,586

- - -

15,425,461 18,297,279 21,348,016 24,822,967 23,457,939 25,270,829

122,510 (276,111) 200,163 239,361 151,655 98,079

54,898 85,152 64,751 71,811 89,378 90,174

- - 323,575 56,495 74,252 98,440

15,602,869 18,106,320 21,936,505 25,190,634 23,773,225 25,557,521

20,564,258

1,723,771 - -

20,564,258 15,144,617 22,034,379 18,834,626 20,547,111 20,672,065

7,144,846 7,220,717 8,661,150 6,535,902 8,325,393 9,351,545

(39,067) 1,668,562 233,100 392,000 505,007 685,803

(965,607) (3,828,699) (2,473,891) (813,096) (1,780,789) (2,422,894)

6,140,172 5,060,580 6,420,359 6,114,806 7,049,611 7,614,454

14,424,086 10,084,037 15,614,020 12,719,820 13,497,500 13,057,611

12,630,259 10,000,231 15,535,011 12,610,349.48 13,399,986.70 12,966,944.52

70,056 83,806 79,009 109,470.28 97,513.68 90,666.36

12,700,315 10,084,037 15,614,020 12,719,820 13,497,500 13,057,611

690,000 690,000 759,000 759,000 759,000 759,000

18.30 13.18 20.47 16.76 17.78 17.20

18.41 14.61 20.57 16.76 17.78 17.20

1.00 2.00 4.00 1.73 1.99 2.07

5% 14% 19% 10% 11% 12%

95% 86% 81% 90% 89% 88%


10/69


11/69

FY12 E FY13 E

74,229,468 82,560,246

23,941,901 23,655,677

50,287,567 58,904,569

8,206,161 -

277,451.56 388,175.80

672,190 924,733

- -

9,155,802 1,312,909

41,131,764 57,591,660

3,963,914 4,219,247

2,440,143 2,485,236

1,770,041 1,894,475

2,994,517 3,197,3682,771,233 2,883,780

12,313,739 13,264,210

53,445,504 70,855,870

- -

25,602,513 25,875,377

89,011 209,115

101,459 107,562

131,125 175,010

28,741,139 32,437,639

24,704,365 38,418,231

10,028,528 11,022,982

926,791 691,188

(2,899,235) (2,617,195)

8,056,084 9,096,976

16,648,281 29,321,256

16,527,929.41 29,115,633.91

120,351.43 205,621.79

16,648,281 29,321,256

759,000 759,000

21.93 38.63

21.93 38.63

2.93 5.13

13% 13%

87% 87%


12/69


13/69

Balance Sheet

Rs. In '000 FY04 FY05 FY06

ASSETS

Cash and balances with treasury banks 31,970,302 33,051,049 46,310,478

Balances with other banks 33,419,120 31,813,513 35,965,048

Lendings to financial institutions 3,755,039 12,272,248 6,550,128

Investments 134,522,944 107,384,470 119,587,476Advances 259,089,466 316,881,635 349,432,685

Other assets 11,919,594 14,481,818 17,765,291

Operating fixed assets 11,110,724 11,166,195 11,954,876

Deferred tax asset 1,978,144 1,842,977 2,725,486

TOTAL ASSETS 487,765,333 528,893,905 590,291,468

LIABILITIES

Bills payable 7,601,766 5,776,325 5,737,457

Borrowings from financial institutions 29,346,284 34,904,352 56,392,270

Deposits and other accounts 404,629,059 432,545,165 459,140,198

Sub-ordinated loans 0 0 0

Liabilities against assets subject to finance lease 0 0 0

Other liabilities 14,162,888 14,490,213 15,578,177

Deferred tax liability 0 0 0

TOTAL LIABILITIES 455,739,997 487,716,055 536,848,102

NET ASSETS 32,025,336 41,177,850 53,443,366

REPRESENTED BY:

Shareholders' equity

Share capital 6,900,000 6,900,000 6,900,000

Reserves 2,645,730 15,912,277 17,802,584

Unappropriated profit 13,559,089 9,908,920 20,475,080

Total equity attributable to the equity holders of the Bank 23,104,819 32,721,197 45,177,664

Minority interest 835,390 846,801 913,317

Surplus on revaluation of assets - net of deferred tax 8,085,127 7,609,852 7,352,385

32,025,336 41,177,850 53,443,366

CONTINGENCIES AND COMMITMENTS

Check 0 0 0

ADR 64% 73% 76%

IDR 33% 25% 26%

ADR + IDR 97% 98% 102%

Infection Ratio 11% 10% 6%


14/69

FY07 FY08 FY09 E FY10 E FY11 E FY12 E

55,487,664 56,533,134 76,942,465 70,103,478 81,421,903 90,252,106

27,020,704 39,307,321 47,494,841 51,074,404 56,179,672 60,642,982

1,628,130 6,193,787 8,893,271 10,541,007 9,277,210 9,766,071

177,942,251 138,145,692 77,154,035 178,353,349 197,687,483 216,223,269382,172,734 456,355,507 41,024,121 212,897,914 579,831,291 672,678,809

27,346,111 35,419,252 28,473,594 33,789,349 39,833,015 46,139,281

13,780,555 14,751,252 17,528,159 19,326,792 21,612,855 24,094,013

6,613,372 11,222,444 6,183,760 7,576,661 9,502,157 11,620,803

691,991,521 757,928,389 846,602,345 952,566,356 1,073,954,871 1,198,769,318

15,418,230 9,944,257 12,127,980 13,406,030 15,791,439 18,821,718

58,994,609 46,844,990 62,437,375 72,840,547 84,372,286 90,109,197

531,298,127 597,090,545 632,915,978 752,028,148 841,771,295 941,036,569

3,100,000 3,954,925 1,642,052 2,217,093 2,999,550 4,017,787

0 0 0 0 0 0

19,943,126 24,913,236 69,506,991.98 32,786,326.78 37,256,658.49 42,113,794.63

0 0 0 0 0 0

628,754,092 682,747,953 778,630,376 873,278,146 982,191,228 1,096,099,064

63,237,429 75,180,436 67,971,968 79,288,210 91,763,643 102,670,253

6,900,000 7,590,000 7,590,000 7,590,000 7,590,000 7,590,000

19,821,455 24,243,254 11,306,418 23,814,159 26,848,872 29,969,233

28,341,670 39,447,648 29,499,570 34,534,258 42,697,933 48,876,120

55,063,125 71,280,902 48,395,987 65,938,417 77,136,805 86,435,353

965,642 890,099 #VALUE! #VALUE! #VALUE! #VALUE!

7,208,662 3,009,435 9,787,990 10,057,791 10,516,921 11,100,772

63,237,429 75,180,436 #VALUE! #VALUE! #VALUE! #VALUE!

0 0 #VALUE! #VALUE! #VALUE! #VALUE!

72% 76% 6% 28% 69% 71%

33% 23% 12% 24% 23% 23%

105% 100% 19% 52% 92% 94%

5% 6% 15% 14% 13% 12%


15/69

FY13 E

99,896,502

71,111,028

12,510,018

221,841,757781,066,018

51,466,330

27,069,939

13,069,000

1,344,363,328

19,338,465

98,341,563

1,059,958,431

4,202,408

0

47,888,894.25

0

1,229,729,761

114,633,567

7,590,000

33,609,083

54,762,591

95,961,674

#VALUE!

12,137,872

#VALUE!

#VALUE!

74%

21%

95%

11%


16/69

Habib Bank Ltd. - Cash Flow Statement

Rs. In '000 FY04CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation 7,247,440

Less: Dividend income and share of profit of joint venture companies (850,918)

Gain on sale of investments- net (3,384,656)

(4,235,574)

3,011,866

Adjustment for non-cash charges

Depreciation / amortisation / adjustments 846,116

Reversal against diminution in the value of investments (151,218)

Provision against non-performing loans and advances - net of reversals 1,887,551

Amortisation of premium on investments 403,892

Gain on sale of property and equipment - net (24,315)

Miscellaneous provisions 511,432

3,473,458

6,485,324

(Increase) / decrease in operating assets

Government securities 20,715,839

Lendings to financial institutions 18,840,449

Loans and advances (77,353,062)

Other assets - net (219,825)

(38,016,599)

Increase / (decrease) in operating liabilities

Deposits and other accounts 43,980,831

Borrowings from financial institutions (2,263,916)

Bills payable 1,343,540

Other liabilities - net 637,846

43,698,301

12,167,026

Change in WC 5,681,702

Income tax paid - net (698,935)

Net cash flows from / (used in) operating activities 11,468,091

CASH FLOWS FROM INVESTING ACTIVITIES

Net investments in held to maturity and available-for-sale securities and joint ventures 4,871,286

Dividend income received 960,232

Fixed capital expenditure (818,806)

Proceeds from sale of fixed assets 54,212

Exchange adjustment on translation of balances in foreign branches, subsidiaries, joint venture and a 902,448

Net cash flows from investing activities 5,969,372

CASH FLOWS FROM FINANCING ACTIVITIES

Sub-ordinated loans

Dividend paid to minority interest by Modaraba

Minority interest impact of exchange adjustment on translation of balances in subsidiaries etc.

Minority share of deficit on revaluation of securities of subsidiaries / modaraba

Dividend paid

Net cash flows (used in) / from financing activities -

Increase in cash and cash equivalents during the year 17,437,463

Cash and cash equivalents at beginning of the year 45,879,138

Effects of exchange rate changes on cash and cash equivalents 2,072,821

47,951,959

Cash and Cash Equivalents at the end of the year 65,389,422


17/69

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

15,436,376 20,564,258 15,144,617 22,034,379 18,834,626 20,547,111 20,672,065 24,704,365

(415,533) (1,192,213) (2,170,631) (2,181,535) -1,362,166 -1,464,416 -1,674,192 -1,770,588

(1,310,803) (27,410) (302,032) (187,698) -1,042,520 -574,093 -426,750 -506,619

(1,726,336) (1,219,623) (2,472,663) (2,369,233) (2,404,686) (2,038,508) (2,100,943) (2,277,207)

13,710,040 19,344,635 12,671,954 19,665,146 16,429,940 18,508,603 18,571,122 22,427,158

810,663 969,983 1,176,762 1,625,943 1,085,893 1,133,849 1,198,486 1,244,187

(82,568) (13,697) (84,310) 1,909,887 315,619 408,986 507,297 611,496

2,974,665 2,863,207 8,238,227 6,904,919 4,573,714 5,110,946 5,538,203 6,073,202

410,420 361,750 - 854,925 507,747 533,710 564,533 615,229

(43,001) (73,441) (51,913) (41,840) -46,902 -51,419 -53,103 -49,035

(147,128) (71,469) (330,737) 572,761 106,972 26,080 60,721 87,159

3,923,051 4,036,333 8,948,029 11,826,595 6,441,493 7,035,100 7,657,510 8,381,746

17,633,091 23,380,968 21,619,983 31,491,741 20,122,221 22,849,601 23,892,903 23,995,290

27,354,750 (13,352,383) - - 6,943,641 4,189,202 -443,908 2,137,787

(8,517,209) 5,722,120 4,921,998 (4,565,657) 3,280,340 168,318 1,905,424 1,142,085

(60,766,834) (35,414,257) (40,978,276) (81,087,692) -59,120,024 -55,473,417 -54,414,733 -58,214,828

(5,597,584) (1,894,864) (7,215,251) (5,306,665) -4,046,838 -4,812,240 -4,655,172 -5,207,233

(47,526,877) (44,939,384) (43,271,529) (90,960,014) -52,942,881 -55,928,137 -57,608,389 -60,142,190

27,916,106 26,595,033 72,157,929 65,792,418 47,288,463 47,949,990 51,956,767 57,029,113

5,558,068 21,487,918 2,602,339 (12,149,619) 3,046,958 4,109,133 3,819,346 285,631

(1,825,441) (38,868) 5,910,593 (5,473,973) -16,830 -288,904 18,404 29,858

764,674 1,894,448 3,967,219 5,021,099 2,457,057 2,820,899 3,232,145 3,499,684

32,413,407 49,938,531 84,638,080 53,189,925 52,775,649 54,591,118 59,026,661 60,844,287

2,519,621 28,380,115 62,986,534 (6,278,348) 19,954,990 21,512,582 25,311,175 24,697,387

(15,113,470) 4,999,147 41,366,551 (37,770,089) (167,232) (1,337,019) 1,418,272 702,097

(974,888) (8,804,827) (6,762,469) (11,953,329) -5,838,890 -6,866,881 -8,045,279 -7,893,369

1,544,733 19,575,288 56,224,065 (18,231,677) 14,116,100 14,645,702 17,265,896 16,804,017

1,202,093 589,141 (56,401,273) 33,750,772 -3,197,596 -4,811,373 -6,014,066 -7,334,707

224,545 720,998 481,567 (135,537) 450,361 348,387 373,155 303,587

(883,817) (1,662,596) (3,061,361) (2,662,833) -1,817,883 -2,017,698 -2,244,474 -2,360,850

60,891 153,904 110,853 108,033 97,579 106,252 115,324 107,608

(679,792) 449,350 1,191,472 3,388,132 1,050,322 1,079,897 1,431,835 1,628,331

(76,080) 250,797 (57,678,742) 34,448,567 -3,417,217 -5,294,535 -6,338,226 -7,656,031

- - - -

3,100,000 - - - - -

(46,457) (17,868) - - - -

14,166 (41,000) - - - -

810 (95,684) - - - -

(391,112) (691,350) (1,381,000) (2,730,251) -1,298,428 -1,298,428 -1,479,892 -1,637,600

(391,112) (691,350) 1,687,519 (2,884,803) -455,949 -547,139 -578,344 -555,743

(524,860) 17,410,964 232,842 13,332,087 9,577,699 8,005,746 9,711,868 8,172,048

65,790,067 61,417,428 79,996,643 75,178,048 65,652,265 69,606,890 70,370,255 72,160,820

(400,645) 3,447,134 2,278,883 7,330,320 2,945,703 3,120,279 3,824,464 3,899,930

65,389,422 64,864,562 82,275,526 82,508,368 68,597,967 72,727,169 74,194,718 76,060,750

64,864,562 82,275,526 82,508,368 95,840,455 78,175,667 80,732,916 83,906,586 84,232,798


18/69

FY13

38,418,231

-1,690,579

-547,536

(2,238,115)

36,180,116

1,257,672

750,657

5,640,197

615,229

-48,460

170,739

8,268,489

24,470,351

2,565,344

386,102

-61,662,139

-4,805,630

-63,516,322

54,003,350

-177,710

-1,146,289

3,406,177

56,085,528

17,039,557

(7,430,794)

-8,119,550

8,920,007

2,478,606

267,991

-2,220,747

106,959

1,715,703

2,348,512

-

-

-

-

-

-1,688,920

-1,004,396

9,759,890

70,593,656

4,224,139

74,817,795

84,577,684


19/69

Habib Bank Ltd. - Notes to Proft and Loss Account 2004 2005

Rs. In '000

MARK-UP / RETURN / INTEREST EARNED

On loans and advances to

Customers 11,238,010 22,690,603

Financial institutions 76,172On investments

Available-for-sale 6,003,745 6,714,759

Held-to-maturity 0 1,421,027

On deposits with financial institutions 676360 1,033,061

On lendings to financial institutions 280610 407,584

18,198,725 32,343,206

MARK-UP / RETURN / INTEREST EXPENSED

Deposits 3,905,763 6,016,621

Securities sold under repurchase agreement borrowings 194,313 336,172

Other short term borrowings 356,794 936,410

Long term borrowings 12,657 37,223

Others 2,611 1,177

4,472,138 7,327,603

ADMINISTRATIVE EXPENSES

Salaries, allowances, etc. 8,457,833 8,689,124

Charge for defined benefit / contribution plan and other benefits 635,257 522,703

Contribution to defined contribution plan 68,787 149,398

Non-executive directors' fees, allowances and other expenses 40 54

Brokerage and commission 11,413 11,412

Rent, taxes, insurance, electricity, etc 1,077,333 1,010,196

Legal and professional charges 163,986 199,117

Communications 143,315 154,387

Repairs and maintenance 274,337 330,669

Stationery and printing 216,549 266,385

Auditors' remuneration 287,724 54,196

Advertisement and publicity 63,395 425,321

Amortisation 0 27,720

Depreciation 846,116 742,697

Entertainment 46,927 51,677Travelling 147,263 173,392

Conveyance and motor car 84,415 86,256

Training 67,780 67,939

Security charges 102,330 125,131

Remittance charges 180,127 142116

Donations 0 41081

Others 906,364 824092


20/69

13,781,291 14,095,063

Common Size Analysis 2004 2005

Deposits 21.46% 18.60%

Securities sold under repurchase agreement borrowings 1.07% 1.04%

Other short term borrowings 1.96% 2.90%Long term borrowings 0.07% 0.12%

Others 0.01% 0.00%

24.57% 22.66%

ADMINISTRATIVE EXPENSES

Salaries, allowances, etc. 46.47% 26.87%

Charge for defined benefit / contribution plan and other benefits 3.49% 1.62%

Contribution to defined contribution plan 0.38% 0.46%

Non-executive directors' fees, allowances and other expenses 0.00% 0.00%

Brokerage and commission 0.06% 0.04%

Rent, taxes, insurance, electricity, etc 5.92% 3.12%Legal and professional charges 0.90% 0.62%

Communications 0.79% 0.48%

Repairs and maintenance 1.51% 1.02%

Stationery and printing 1.19% 0.82%

Auditors' remuneration 1.58% 0.17%

Advertisement and publicity 0.35% 1.32%

Amortisation 0.00% 0.09%

Depreciation 4.65% 2.30%

Entertainment 0.26% 0.16%

Travelling 0.81% 0.54%

Conveyance and motor car 0.46% 0.27%

Training 0.37% 0.21%

Security charges 0.56% 0.39%

Remittance charges 0.99% 0.44%

Donations 0.00% 0.13%

Others 4.98% 2.55%

Total Admin Expenses as a %age of markp earned 75.73% 43.58%


21/69

2006 2007 2008 2009 2010 2011 2012

32,598,656 36,030,674 46,916,618 40,957,356 44,859,102 49,559,886 55,012,934

149,336 231,011 257,623 224,900 246,325 272,137 302,081

7,235,562 11,072,401 13,210,987 11,532,952 12,631,623 13,955,290 15,490,783

932,668 739,749 627,927 548,169 600,389 663,304 736,287

1,002,062 1,808,199 1,681,796 1,468,177 1,608,041 1,776,548 1,972,020

1,767,456 598,987 610,082 532,591 583,327 644,454 715,363

43,685,740 50,481,021 63,305,033 55,264,145 60,528,807 66,871,619 74,229,468

10,590,476 16,767,617 22,836,362 18,421,382 24,211,523 26,748,648 29,691,787

367,962 752,141 1,829,627 810,121 935,499 1,101,224 1,208,818

2,167,784 1,426,300 1,367,513 1,636,218 1,913,169 2,149,163 1,915,331

77,481 207,899 492,054 171,441 216,909 272,174 302,888

334 0 0 2,072 987 822 884

13,204,037 19,153,957 26,525,556 17,385,967 19,875,802 23,320,248 23,941,901

9,649,081 10,363,787 11,793,597 14,875,736 13,925,286 14,868,357 14,887,977

98,964 210,283 470,304 717,637 520,631 474,081 538,599

225,162 0 0 149,800 151,127 138,578 97,361

46 1,038 11,200 2,237 2,914 3,840 4,595

15,404 14,008 13,476 20,149 18,890 20,324 19,673

1,045,775 1,316,042 1,919,993 1,887,489 1,764,117 1,921,046 1,985,093

372,006 634,933 763,018 534,000 592,762 703,515 730,329

263,465 434,598 417,599 374,526 396,913 462,365 474,179

388,056 547,029 728,718 624,802 638,699 710,018 733,219

288,531 268,802 413,739 426,644 416,698 442,283 442,406

66,313 80,267 92,494 243,769 128,995 148,605 158,024

253,049 884,365 696,203 563,059 697,868 749,322 821,715

172,004 234,900 366,965 168,493 221,454 282,129 285,896

797,979 941,862 1,258,978 1,395,616 1,271,445 1,378,502 1,409,902

61,628 76,633 92,201 94,630 93,158 102,134 103,694

229,832 403,116 322,307 351,378 363,863 410,691 422,467

78,387 68,286 93,070 131,779 117,046 119,506 119,409

137,980 126,581 168,784 156,477 160,573 184,785 179,500

289,123 335,924 351,894 313,051 343,379 403,490 395,674

219,732 201,601 88,877 273,217 239,273 258,449 242,868

1,975 2,552 27,330 19,869 26,114 17,633 20,555

770,969 1,150,672 1,257,269 1,498,609 1,366,735 1,471,173 1,529,377


22/69

15,425,461 18,297,279 21,348,016 24,822,967 23,457,939 25,270,829 25,602,513

2006 2007 2008 2009 2010 2011 2012

24.24% 33.22% 36.07% 33% 40% 40% 33%

0.84% 1.49% 2.89% 1.47% 1.55% 1.65% 1.81%

4.96% 2.83% 2.16% 2.96% 3.16% 3.21% 2.86%0.18% 0.41% 0.78% 0.31% 0.36% 0.41% 0.45%

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

30.23% 37.94% 41.90% 31.46% 32.84% 34.87% 35.80%

22.09% 20.53% 18.63% 26.92% 23.01% 22.23% 22.26%

0.23% 0.42% 0.74% 1.30% 0.86% 0.71% 0.81%

0.52% 0.00% 0.00% 0.27% 0.25% 0.21% 0.15%

0.00% 0.00% 0.02% 0.00% 0.00% 0.01% 0.01%

0.04% 0.03% 0.02% 0.04% 0.03% 0.03% 0.03%

2.39% 2.61% 3.03% 3.42% 2.91% 2.87% 2.97%0.85% 1.26% 1.21% 0.97% 0.98% 1.05% 1.09%

0.60% 0.86% 0.66% 0.68% 0.66% 0.69% 0.71%

0.89% 1.08% 1.15% 1.13% 1.06% 1.06% 1.10%

0.66% 0.53% 0.65% 0.77% 0.69% 0.66% 0.66%

0.15% 0.16% 0.15% 0.44% 0.21% 0.22% 0.24%

0.58% 1.75% 1.10% 1.02% 1.15% 1.12% 1.23%

0.39% 0.47% 0.58% 0.30% 0.37% 0.42% 0.43%

1.83% 1.87% 1.99% 2.53% 2.10% 2.06% 2.11%

0.14% 0.15% 0.15% 0.17% 0.15% 0.15% 0.16%

0.53% 0.80% 0.51% 0.64% 0.60% 0.61% 0.63%

0.18% 0.14% 0.15% 0.24% 0.19% 0.18% 0.18%

0.32% 0.25% 0.27% 0.28% 0.27% 0.28% 0.27%

0.66% 0.67% 0.56% 0.57% 0.57% 0.60% 0.59%

0.50% 0.40% 0.14% 0.49% 0.40% 0.39% 0.36%

0.00% 0.01% 0.04% 0.04% 0.04% 0.03% 0.03%

1.76% 2.28% 1.99% 2.71% 2.26% 2.20% 2.29%

35.31% 36.25% 33.72% 44.92% 38.75% 37.79% 38.29%


23/69

2013

61,187,039

335,983

17,229,315

818,921

2,193,340

795,648

82,560,246

33,024,098

1,251,311

1,920,517

308,385

1,061

23,655,677

15,119,815

590,607

116,833

5,238

19,897

2,033,443

708,178

453,873

734,935

459,671

168,363

751,757

280,842

1,442,348

104,130

400,159

125,200

181,864

385,810

238,030

23,990

1,530,396


24/69

25,875,377

2013

40%

1.87%

2.87%0.46%

0.00%

35.37%

22.61%

0.88%

0.17%

0.01%

0.03%

3.04%1.06%

0.68%

1.10%

0.69%

0.25%

1.12%

0.42%

2.16%

0.16%

0.60%

0.19%

0.27%

0.58%

0.36%

0.04%

2.29%

38.69%


25/69

Habib Bank Ltd. - Notes to Balance Sheet

Rs. In '000

ADVANCES

Loans, cash credits, running finances, etc.

In Pakistan

Outside Pakistan

Net investment in finance lease - in Pakistan

Bills discounted and purchased (excluding Government treasury bills)

Payable in Pakistan

Payable outside Pakistan

Provision against non-performing advances

Net Advances

Gross Advances

NPL to Gross Advances

DEPOSITS AND OTHER ACCOUNTS

Customers

Fixed deposits

Savings deposits

Other Savings accounts

Current accounts - non-remunerative

Current accounts - remunerative

Financial Institutions

Remunerative depositsNon-remunerative deposits

TOTAL DEPOSITS

Surplus / (deficit) on revaluation of investments

Market treasury bills

Pakistan Investment Bonds

Sukuk and Euro Bonds

Listed securities

NIT units

Other investments

Add: related deferred tax asset / liability

ADVANCES


26/69

Loans, cash credits, running finances, etc.

In Pakistan

Outside Pakistan

Net investment in finance lease - in Pakistan

Bills discounted and purchased (excluding Government treasury bills)

Payable in Pakistan

Payable outside Pakistan

Provision against non-performing advances

Net Advances

Gross Advances

DEPOSITS AND OTHER ACCOUNTS

CustomersFixed deposits

Savings deposits

Other Savings accounts

Current accounts - non-remunerative

Current accounts - remunerative

total customer deposits

Financial Institutions

Remunerative deposits

Non-remunerative deposits

TOTAL DEPOSITS

Surplus / (deficit) on revaluation of investments

Market treasury bills

Pakistan Investment Bonds

Sukuk and Euro Bonds

Listed securities

NIT units

Other investments

Add: related deferred tax asset / liability


27/69

FY04 FY05 FY06 FY07 FY08 FY09

220,332,311 272,397,998 291,209,502 310,370,832 367,769,370 36,776,937

41,387,378 40,997,903 38,068,479 55,501,503 73,166,782 7,316,678

261,719,689 313,395,901 329,277,981 365,872,335 440,936,152 44,093,615

7,898,875 12,636,997 11,827,390 8,719,113 4,537,980 272,279

9,800,467 12,352,640 9,843,365 6,387,872 12,227,536 1,222,754

12,978,982 12,039,363 20,415,802 22,499,580 26,750,236 2,675,024

22,779,449 24,392,003 30,259,167 28,887,452 38,977,772 3,897,777

-33,308,547 -33,543,266 -21,931,853 -21,306,166 -28,096,397 -7,239,551

259,089,466 316,881,635 349,432,685 382,172,734 456,355,507 41,024,121

292,398,013 350,424,901 371,364,538 403,478,900 484,451,904 48,263,671

11% 10% 6% 5% 6% 15%

74,439,968 100,469,938 135,098,044 142,718,688 186,206,978 197,379,397

239,817,027 219,660,754 168,057,000 194,299,616 198,303,889 210,202,122

0 0 52,325,375 72,663,620 72,936,177 77,312,348

84,067,896 104,878,310 90,350,296 109,089,044 130,326,871 138,146,483

0 0 0 1,672,810 2,739,417 2,903,782

398,324,891 425,009,002 445,830,715 520,443,778 590,513,332 625,944,132

2,891,984 3,581,694 8,612,135 6,477,822 2,368,970 2,511,1083,412,184 3,954,469 4,697,348 4,376,527 4,208,243 4,460,738

6,304,168 7,536,163 13,309,483 10,854,349 6,577,213 6,971,846

404,629,059 432,545,165 ### ### ### ###

-76,106 -47,772 -92,722 -242,682 -60,586 -103,974

-67,980 -136,744 -142,457 -179,220 -2,272,277 -559,736

0 0 0 0 -2,393,398 -478,680

792,963 342,415 155,506 205,991 -49,072 289,561

16,352 25,426 20,605 32,809 12,419 21,522

45,270 85,093 88,456 83,338 1,616,624 383,756

710,499 268,418 29,388 -99,764 -3,146,290 -447,550

50,743 65,519 -11,732 38,612 2,173,027 463,234

761,242 333,937 17,656 -61,152 -973,263 15,684


28/69

75% 78% 78% 77% 76% 76%

14% 12% 10% 14% 15% 15%

90% 89% 89% 91% 91% 91%

3% 4% 3% 2% 1% 1%

0% 0% 0% 0% 0% 0%

0% 0% 0% 0% 0% 0%

3% 4% 3% 2% 3% 3%

4% 3% 5% 6% 6% 6%

8% 7% 8% 7% 8% 8%

-11% -10% -6% -5% -6% -15%

89% 90% 94% 95% 94% 85%

100% 100% 100% 100% 100% 100%

18% 23% 29% 27% 31% 31%

59% 51% 37% 37% 33% 33%

0.00% 0.00% 11% 14% 12% 12%

21% 24% 20% 21% 22% 22%

0.00% 0.00% 0.00% 0.31% 0.46% 0.46%

98% 98% 97% 98% 99% 99%

1% 1% 2% 1% 0% 0%

1% 1% 1% 1% 1% 1%

2% 2% 3% 2% 1% 1%

100% 100% 100% 100% 100% 100%

0% 0% 0% 0% 0% 0%

0% 0% 0% 0% 0% -1%

0% 0% 0% 0% 0% -1%

0% 0% 0% 0% 0% 1%

0% 0% 0% 0% 0% 0%

0% 0% 0% 0% 0% 1%0% 0% 0% 0% -1% -1%

0% 0% 0% 0% 0% 1%


29/69

FY10 FY11 FY12 FY13

183,884,685 505,682,884 581,535,316 668,765,614

36,583,391 100,604,325 115,694,974 133,049,220

220,468,076 606,287,209 697,230,290 801,814,834

7,598,752 6,591,103 5,543,845 4,908,792

6,113,768 16,812,862 19,334,791 22,235,010

13,375,118 36,781,575 42,298,811 48,643,632

19,488,886 53,594,437 61,633,602 70,878,642

-34,657,800 -86,641,457 -91,728,929 -96,536,249

212,897,914 579,831,291 672,678,809 781,066,018

247,555,714 666,472,748 764,407,738 877,602,268

14% 13% 12% 11%

152,374,609 162,755,543 168,287,043 173,400,714

198,104,676 193,793,461 198,940,753 199,868,980

55,047,504 66,057,005 68,803,331 68,031,273

114,558,201 116,494,179 121,722,956 124,249,738

1,463,202 1,755,842 2,107,011 2,193,851

521,548,192 540,856,030 559,861,093 567,744,556

4,710,346 4,936,076 4,200,864 3,745,4734,339,465 4,416,464 4,360,287 4,357,039

9,049,811 9,352,540 8,561,152 8,102,512

### ### 568,422,244 575,847,068

-109,547 -121,902 -127,738 -104,749

-658,087 -762,355 -886,335 -1,027,758

-574,416 -689,299 -827,158 -992,590

188,880 158,173 158,707 149,250

22,556 21,982 22,258 20,147

451,453 524,726 611,979 717,708

-679,160 -868,675 -1,048,288 -1,237,992

545,732 641,775 772,476 919,249

-133,428 -226,901 -275,812 -318,744


30/69

74% 76% 76% 76%

15% 15% 15% 15%

89% 91% 91% 91%

3% 1% 1% 1%

0% 0% 0% 0%

0% 0% 0% 0%

2% 3% 3% 3%

5% 6% 6% 6%

8% 8% 8% 8%

-14% -13% -12% -11%

86% 87% 88% 89%

100% 100% 100% 100%

29% 30% 30% 30%

37% 35% 35% 35%

10% 12% 12% 12%

22% 21% 21% 22%

0.28% 0.32% 0.37% 0.38%

98% 98% 98% 99%

1% 1% 1% 1%

1% 1% 1% 1%

2% 2% 2% 1%

100% 100% 100% 100%

0% 0% 0% 0%

0% 0% 0% 0%

0% 0% 0% 0%

0% 0% 0% 0%

0% 0% 0% 0%

0% 0% 0% 0%0% 0% 0% 0%

0% 0% 0% 0%


31/69

Habib Bank Limited

Profit & Loss Account - Temporal Analysis

FY05 FY06 FY07

Mark-up / return / interest earned 78% 35% 16%

Mark-up / return / interest expensed 64% 80% 45%

Net mark-up / interest income 82% 22% 3%

Provision against non-performing loans and advances - net 58% -4% 188%

Charge / (reversal) against off-balance sheet obligations -77% -135% 20%

Charge / (reversal) of provision against diminution in the value of investment -45% -83% 516%

Bad debts written off directly 0% 0% 0%

31% -7% 189%

Net mark-up / interest income after provisions 93% 26% -16%


Fee, commission and brokerage income 17% 34% -13%

Income / gain on investments -59% -29% 103%Income from dealing in foreign currencies 28% -21% 35%

Gain on investments in associate

Other income -12% 25% 18%

Total non-mark-up / interest income -20% 8% 18%

40% 21% -8%


Administrative expenses 2% 9% 19%

Other provisions / write offs - net 2% -51% -325%

Other charges 810% -20% 55%

Workers welfare fund 0% 0% 0%

Total non mark-up / interest expenses 3% 8% 16%Staff retrenchment cost

Profit before taxation 113% 33% -26%

Taxation

current 924% 75% 1%

prior years -357% -1% -4371%

deferred -86% -744% 297%

182% 47% -18%

Profit after taxation 95% 28% -30%

Attributable to:

Equity holders of the Bank 69% 32% -21%

Minority interest -7% -16% 20%

Total Taxation 67% 32% -21%

Basic and diluted earnings per share 69% 32% -28%


32/69


25% -13% 10% 10% 11% 11%

38% -19% 14% 16% 17% 17%

17% -9% 7% 7% 8% 8%

-16% 8% -6% -7% -7% -7%

-782% 391% -293% -323% -339% -346%

-2365% 1183% -887% -976% -1024% -1045%

0% 0% 0% 0% 0% 0%

13% -7% 5% 6% 6% 6%

19% -9% 7% 8% 8% 8%

32% -16% 12% 13% 14% 14%

-4% 2% -2% -2% -2% -2%60% -30% 22% 25% 26% 26%

0% 0% 0%

18% -9% 7% 7% 8% 8%

63% -32% 24% 26% 27% 28%

32% -16% 12% 13% 14% 14%

0% 0% 0%

17% -8% 6% 7% 7% 7%

-172% 86% -65% -71% -75% -76%

-24% 12% -9% -10% -10% -11%

0% 0% 0% 0% 0% 0%

21% -11% 8% 9% 9% 9%

45% -23% 17% 19% 20% 20%

20% -10% 7% 8% 9% 9%

-86% 43% -32% -35% -37% -38%

-35% 18% -13% -15% -15% -16%

27% -13% 10% 11% 12% 12%

55% -27% 21% 23% 24% 24%

55% -28% 21% 23% 24% 24%

-6% 3% -2% -2% -2% -3%

55% -27% 21% 23% 24% 24%

0% 0% 0%

55% -28% 21% 23% 24% 24%


33/69

Horizontal Analysis - Balance Sheet FY05 FY06 FY07

ASSETS

Cash and balances with treasury banks 3% 40% 20%

Balances with other banks -5% 13% -25%

Lendings to financial institutions 227% -47% -75%

Investments -20% 11% 49%

Advances 22% 10% 9%

Other assets 21% 23% 54%

Operating fixed assets 0% 7% 15%

Deferred tax asset -7% 48% 143%

TOTAL ASSETS 8% 12% 17%

LIABILITIES

Bills payable -24% -1% 169%

Borrowings from financial institutions 19% 62% 5%

Deposits and other accounts 7% 6% 16%

Sub-ordinated loans #DIV/0! #DIV/0! #DIV/0!

Liabilities against assets subject to finance lease 0% 0% 0%

Other liabilities 2% 8% 28%Deferred tax liability

TOTAL LIABILITIES 7% 10% 17%

NET ASSETS 29% 30% 18%

REPRESENTED BY:


Share capital 0% 0% 0%

Reserves 501% 12% 11%

Unappropriated profit -27% 107% 38%

Total equity attributable to the equity holders of the Bank 42% 38% 22%

Minority interest 1% 8% 6%Surplus on revaluation of assets - net of deferred tax -6% -3% -2%

29% 30% 18%


34/69


2% 16% 20% 14% 13% 16%

45% 7% 10% 10% 18% 11%

280% 96% 64% 91% 133% 96%

-22% 4% 11% 10% 1% 7%

19% -94% 120% 14% 15% 14%

30% 32% 35% 37% 33% 34%

7% 7% 9% 10% 8% 9%

70% 63% 81% 89% 76% 77%

10% 12% 13% 13% 12% 12%

-36% 27% 40% 50% 20% 34%

-21% 16% 15% 4% 4% 10%

12% 15% 12% 14% 13% 14%

28%

0% 0% 0% 0% 0% 0%

25% 16% 19% 22% 20% 19%

9% 11% 12% 12% 11% 11%

19% 24% 23% 21% 22% 22%

10% 3% 3% 4% 5% 4%

22% 137% 46% 54% 65% 75%

39% 39% 56% 43% 44% 46%

29% 33% 31% 29% 30% 31%

-8% 2% 2% 0% -1% 1%-58% -17% -20% -24% -30% -23%

19% 24% 23% 21% 22% 22%


35/69

Habib Bank Limited

Profit & Loss Account - Common Size Analysis

Rs. In '000 FY04 FY05

Mark-up / return / interest earned 100% 100%

Mark-up / return / interest expensed 25% 23%

Net mark-up / interest income 75% 77%

Provision against non-performing loans and advances - net 10% 9%

Charge / (reversal) against off-balance sheet obligations 3.14% 0.40%

Charge / (reversal) of provision against diminution in the value of investments -0.83% -0.26%

Bad debts written off directly 0% 0%

13% 9%

Net mark-up / interest income after provisions 63% 68%


Fee, commission and brokerage income 14% 9%

Income / gain on investments 23% 5%Income from dealing in foreign currencies 6% 4%

Gain on investments in associate 0% 0%

Other income 11% 6%

Total non-mark-up / interest income 54% 24%

117% 92%


Administrative expenses 76% 44%

Other provisions / write offs - net 1% 1%

Other charges 0.04% 0.21%

Workers welfare fund 0% 0%

Total non mark-up / interest expenses 77% 45%Staff retrenchment cost 0.0% 5.0%

Profit before taxation 40% 48%

Taxation

current 2% 13%

prior years 0% 0%

deferred 6% 0%

8% 13%

Profit after taxation 32% 35%

Attributable to:

Equity holders of the Bank 31% 30%

Minority interest 0.49% 0.26%

Total Taxation 32% 30%

Basic and diluted earnings per share 0.00% 0.00%


36/69

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

100% 100% 100% 100% 100% 100% 100% 100%

30% 38% 42% 31% 33% 35% 36% 35%

70% 62% 58% 69% 67% 65% 64% 65%

7% 16% 11% 11% 11% 11% 12% 11%

-0.10% -0.11% 0.59% 0.78% 0.31% 0.29% 0.37% 0.47%

-0.03% -0.17% 3.02% 0.35% 0.58% 0.75% 0.91% 1.12%

0% 0% 0% 0% 0% 0% 0% 0%

6% 16% 15% 12% 12% 12% 13% 13%

63% 46% 44% 57% 56% 53% 51% 52%

9% 7% 7% 9% 8% 8% 8% 8%

3% 5% 4% 8% 5% 5% 5% 5%3% 3% 4% 4% 3% 3% 3% 4%

0% 0% 6% 1% 2% 2% 2% 3%

5% 5% 5% 6% 5% 5% 5% 6%

19% 20% 26% 29% 24% 24% 24% 25%

83% 66% 69% 85% 79% 77% 75% 77%

35% 36% 34% 45% 39% 38% 38% 39%

0% -1% 0% 0% 0% 0% 0% 0%

0.13% 0.17% 0.10% 0% 0% 0% 0% 0%

0% 0.00% 1% 0% 0% 0% 0% 0%

36% 36% 35% 46% 39% 38% 39% 39%3.9% 0.0% 0.0% 2% 2% 2% 1% 1%

47% 30% 35% 40% 40% 38% 37% 38%

16% 14% 14% 12% 14% 14% 14% 13%

0% 3% 0% 1% 1% 1% 1% 1%

-2% -8% -4% -1% -3% -4% -4% -3%

14% 10% 10% 11% 12% 11% 11% 11%

33% 20% 25% 29% 28% 27% 26% 27%

29% 20% 25% 27% 26% 25% 24% 25%

0.16% 0.17% 0.12% 0% 0% 0% 0% 0%

29% 20% 25% 27% 26% 25% 25% 26%


37/69

Habib Bank Limited

Profit & Loss Account - Common Size Analysis

Rs. In '000 FY04 FY05 FY06

ASSETS

Cash and balances with treasury banks 7% 6% 8%

Balances with other banks 7% 6% 6%

Lendings to financial institutions 1% 2% 1%

Investments 28% 20% 20%

Advances 53% 60% 59%

Other assets 2% 3% 3%

Operating fixed assets 2% 2% 2%

Deferred tax asset 0.41% 0.35% 0.46%

TOTAL ASSETS 100% 100% 100%

LIABILITIES

Bills payable 2% 1% 1%

Borrowings from financial institutions 6% 7% 10%

Deposits and other accounts 83% 82% 78%

Sub-ordinated loans 0.00% 0.00% 0.00%Liabilities against assets subject to finance lease

Other liabilities 3% 3% 3%

Deferred tax liability 0% 0% 0%

TOTAL LIABILITIES 93% 92% 91%

NET ASSETS 7% 8% 9%

REPRESENTED BY:


Share capital 1% 1% 1%

Reserves 1% 3% 3%

Unappropriated profit 3% 2% 3%Total equity attributable to the equity holders of the Bank 5% 6% 8%

Minority interest 0% 0% 0%

Surplus on revaluation of assets - net of deferred tax 2% 1% 1%

7% 8% 9%


38/69

FY07 FY08 FY09 E FY10 E FY11 E FY12 E FY13 E

8% 7% 7% 7% 8% 8% 7%

4% 5% 6% 5% 5% 5% 5%

0.24% 1% 1% 1% 1% 1% 1%

26% 18% 9% 19% 18% 18% 17%

55% 60% -58% 35% 31% 25% 19%

4% 5% 3% 4% 4% 4% 4%

2% 2% 2% 2% 2% 2% 2%

0.96% 1.48% 1% 1% 1% 1% 1%

100% 100% 100% 100% 100% 100% 100%

2% 1% 1% 1% 1% 2% 1%

9% 6% 7% 8% 8% 8% 7%

77% 79% 80% 79% 78% 79% 79%

0.45% 0.52% 0.19% 0.23% 0.28% 0.34% 0.31%

3% 3% 3% 3% 3% 3% 3%

0% 0% 0% 0% 0% 0% 0%

91% 90% 92% 91% 91% 91% 91%

9% 10% 8% 9% 9% 9% 9%

1% 1% 1% 1% 1% 1% 1%

3% 3% 1% 3% 3% 3% 3%

4% 5% 3% 4% 4% 4% 4%8% 9% 6% 7% 8% 8% 8%

0% 0% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

1% 0.40% 1% 1% 1% 1% 1%

9% 10% 8% #VALUE! #VALUE! #VALUE! #VALUE!


39/69

Slowdown in domestic economic activity exacerbated by power shortages,

decline in external demand due to the global recession, and SBPs tight monetary

policy stance necessary for overall macroeconomic stability are responsible for the

fall in demand for credit by the private sector. Negative wealth effect transmitted

through a fall in asset prices also played its part in this decline. On the other hand,

rising Non Performing Loans (NPLs) and availability of alternate avenues to extend

credit, such as government and Public Sector Enterprises (PSEs), allowed the banks to

be risk averse and shy away from private sector in a high risk and uncertain

environment. Easing the monetary policy stance to some extent will send a positive

Monetary Policy Statement, AprilJune 2009

4

signal in this context but may not be sufficient under the current uncertain economic

environment to fully revive the PSC and thus the growth prospects.

More worrying, perhaps, are the prospects of foreign inflows

remittances as well as the financial account inflows. Up till March, 2009, the workers

remittances at $5.7 billion and FDI at $3 billion though look fairly stable but their

outlook is uncertain.

keeping in view the expected liquidity demand in

Q4FY09 emanating from various sources and remaining fully cognizant of the weak

growth in banking system deposits and slow reserve money growth, SBP stands

ready to play its part in ensuring smooth functioning of the domestic market.

The credit for fixed investment

compensated for this decline and The immediate implic

expanded by Rs152 billion during July reflected in domestic f

March FY09 compared with a Rs38 billion pressure on domestic i

in the same period of FY08. The main reducing the availabilidrivers of this expansion are the power the government on do

and fertilizer sectors which are

undertaking large investments to meet

the shortages in their production

capacities. However, most of this credit is

the result of commitments made by

banks in the past. It is expected that this

acceleration in fixed investment will

continue for some time to come as some

of the projects are still in the pipeline.


40/69

tion of adverse external developments is likely to be

inancial markets. Reduced flows in both the markets could put

nterest rates and exchange rate. It also increases the risk of

y of credit for private sector. Moreover, the dependence ofmestic financial markets could increase significantly.


41/69


42/69

Habib Bank Ltd. - INVESTMENTS

Rs. In '000

Held by Group

Investments by type

Held to Maturity securities (HTM)Federal Government Securities

- Market treasury bills 0

- Pakistan investment bonds 21,398,951

- Government of Pakistan US Dollar / Euro bonds 1,622,989

Overseas Government securities 4,571,042

Debentures and Corporate Debt Instruments 294,537

27,887,519

Available-for-sale securities (AFS)

Federal Government Securities- Market treasury bills 47,250,726

- Pakistan investment bonds 905,446

- Government of Pakistan Guaranteed bonds 24,203,445

- WAPDA bonds 899,993

- Government of Pakistan bonds (US Dollar / Euro) 1,114,367

Overseas Government securities 5,666,681

Fully paid-up ordinary shares:

- Listed companies 1,629,222

- Unlisted companies 355,791

Debentures and Corporate Debt Instruments 13,799,168- Listed companies

- Unlisted companies

NIT units 3,953

Preference shares 189,466

Other investments 82,112

Investment (net of provision) 96,100,370

Surplus on revaluation of investments 722,759

Investments (at revalued amount) 96,823,129

Investment in associates and joint venture companies 1,457,466

126,168,114


43/69

2004 2005

Given as Collateral Total Held by Group Given as Collateral

0 48,272 0

21,398,951 15,866,815 0

1,622,989 0 0

4,571,042 2,212,674 0

294,537 291,365 0

27,887,519 18,419,126 0

8367090 55,617,816 32,281,358 3,144,679

905,446 946,480 0

24,203,445 24,140,057 0

899,993 599,991 0

1,114,367 852,254 0

0 0

5,666,681 8,142,980 0

0 0

1,629,222 1,102,154 0

355,791 385,755 0

13,799,168 13,960,141 0

3,953 3,953 0

189,466 260,983 0

82,112 86,792 0

96,100,370 82,762,898 3,144,679

-12260 710,499 267,472 946

8354830 105,177,959 83,030,370 3,145,625

0 1,457,466 2,789,349 0

8354830 134,522,944 104,238,845 3,145,625


44/69

2006

Total Held by Group Given as Collateral Total Held by Group

48,272 86,392 86,392

15,866,815 14,782,250 14,782,250 12,164,051

0 0 0

2,212,674 224,382 224,382 58,951

291,365 166,996 166,996 0

18,419,126 15,260,020 15,260,020 12,223,002

35,426,037 35,891,929 21,337,072 57,229,001 72,497,871

946,480 987,349 987,349 9,823,565

24,140,057 20,653,643 20,653,643 6,420,732

599,991 0 0

852,254 864,805 864,805 5,559,665

0 0

8,142,980 6,163,192 6,163,192 9,496,982

0 0

1,102,154 1,679,827 1,679,827 854,140

385,755 455,613 455,613 416,177

13,960,141 0510,926 510,926 1,044,923

12,117,227 12,117,227 21,570,060

3,953 32,134 32,134 44,338

260,983 171,667 171,667 200,000

86,792 183,414 183,414 1,815,817

85,907,577 79,711,726 21,337,072 101,048,798 129,744,270

268,418 0 0

86,175,995 0 0

2,789,349 3,278,658 3,278,658 7,418,112

107,384,470 98,250,404 21,337,072 119,587,476 149,385,384


45/69

2007 2008

Given as Collateral Total Held by Group Given as C Total

12,164,051 9,865,095 9,865,095

0 0

58,951 74,604 74,604

0 48,182 48,182

12,223,002 9,987,881 9,987,881

28,556,867 101,054,738 49,465,602 8754798 58,220,400

9,823,565 9,021,042 9,021,042

6,420,732 6,598,710 6,598,710

0

5,559,665 4,718,958 4,718,958

0 0

9,496,982 8,153,876 8,153,876

0

854,140 766,194 766,194

416,177 437,657 437,657

0 01,044,923 2,227,518 2,227,518

21,570,060 23,687,951 23,687,951

44,338 23,948 23,948

200,000 181,700 181,700

1,815,817 782,003 782,003

28,556,867 158,301,137 106,065,159 8754798 114,819,957

0 0 0

0 0 0

7,418,112 13,337,854 22,092,652

28,556,867 177,942,251 129,390,894 8754798 138,145,692


46/69

Tangible fixed assets

COST / REVA

As at January 1 2008 Additions / (deletio

Land 7,058,566 496,730

-3,96041,357

Building including related machinery 3,873,831 155,972

-3,432

48,909

Furniture, fixture and office equipment 6,536,957 1,318,542

-431,011

213,827

Vehicles 269,047 112,123

-41,808

20,839

Total 17,738,401 2,083,367-480,211

324,932

COST / REVA


Land 6,682,994 387,244

-15,546

3,874


-29,78431,328

Furniture, fixture and office equipment 5,025,133 1,710,249

-257,384

58,959

Vehicles 329,791 14,428

-76,966

1,794

Total 15,621,483 2,400,643

-379,680

95,955

COST / REVA


Land 6,487,194 71,472

-5,175

5,375



47/69

-26,944

2,361

Furniture, fixture and office equipment 4,743,872 772,748

-362,723

-128,764

Vehicles 573,214 55,509-264,797

-34,135

Total 15,237,466 1,066,688

-659,639

-155,163

COST / REVA


Land 6,495,864 304

-183


-8,175

Furniture, fixture and office equipment 4,313,693 664,612

-196,269

Vehicles 553,311 83,972

-73,979

Total 14,706,438 861,895

-278,606

COST / REVA


Land 7,058,566 496,730

-3,960

41,357


-3,432

48,909Furniture, fixture and office equipment 6,536,957 1,318,542

-431,011

213,827

Vehicles 269,047 112,123

-41,808

20,839


48/69

Total 10,631,117 628,685

-141,357


49/69

LUATION DEPRE

Surplus / (de As at December 31,200 As at January 1 2Charge for the year

7,592,693 0 0

00

4,075,280 923485 195,903

-329

41,568

7,638,315 4028913 1,016,048

-372,370

146,113

360,201 196212 47,027

-41,326

12,442

19,666,489 5,148,610 1,258,978-414,025

200,123

LUATION DEPRE


7,058,566 0 0

0

0

3,873,831 747,266 183,504

-6,327-958

6,536,957 3,525,070 724,324

-251,769

31,288

269,047 224,932 34,034

-62,644

-110

17,738,401 4,497,268 941,862

-320,740

30,220

LUATION DEPRE


124,128 6,682,994 0 0

0

0

8,003 3,583,565 617,987 165,316


50/69

-26,944

-390

5,025,133 3,424,250 571,450

-357,324

-113,306

329,791 394,247 61,213-199,049

-31,479

15,621,483 4,436,484 797,979

-583,317

-145,175

LUATION DEPRE


-8,791 6,487,194 0 0

0

0-15,216 3,433,186 449,962 162,838

-2,620

-38,164 4,743,872 3,129,335 515,938

-190,777

9,910 573,214 387,428 63,921

-67,319

-52,261 15,237,466 3,966,725 742,697

-260,716

LUATION DEPRE


7,592,693 0 0

0

0

4,075,280 923485 195,903

-329

41,5687,638,315 4028913 1,016,048

-372,370

146,113

360,201 196212 47,027

-41,326

12,442


51/69

3,587,993 14,706,438 3,746,136 846,116

-111,460


52/69

IATION

Surplus / (defecit) o As at December BV at Dec 31 200 %age Depreciat

0 7,592,693 0

1,160,627 2,914,653 2.5-10

4,818,704 2,819,611 20-33

214,355 145,846 20

6,193,686 13,472,803

IATION

Surplus / (defecit) o As at December BV at Dec 31 200 Rate of Depreci

0 7,058,566 0

923,485 2,950,346 2.5-10

4,028,913 2,508,044 20-33

196,212 72,835 20

5,148,610 12,589,791

IATION


0 6,682,994 0

-8703 747,266 2,836,299 2.5-10


53/69

3,525,070 1,500,063 20-33

224,932 104,859 20

-8703 4,497,268 11,124,215

IATION


0 6,487,194 0

7,807 617,987 2,815,199 2.5-10

-30,246 3,424,250 1,319,622 20-33

10,217 394,247 178,967 20

-12222 4,436,484 10,800,982

IATION


0 7,592,693 0

1,160,627 2,914,653 2.5-10

4,818,704 2,819,611 20-33

214,355 145,846 20


54/69

-514067 3,966,725 10,739,713


55/69

ion

ation

ation


56/69

ation

ation


57/69


58/69

Habib Bank Limited

Valuations FY04 FY05 FY06 FY07 FY08

EPS (PKR) 8.21 13.86 18.30 13.18 20.47

ROE (%) 22.63% 37.49% 38.48% 20.14% 34.84%

Growth Rate (%) 4 4 4 4 4

ROR (%) 20%

Justified PBV 0.26 0.62 0.89 0.57 1.03

BVPS (PKR) 90 104 121 135 151Market Price (PKR) 24 64 108 78 155


59/69

FY09 FY10 FY11 FY12 FY13

16.76 17.78 17.20 21.93 38.63

25.05% #VALUE! #VALUE! #VALUE! #VALUE!

4 4 4 4 4

0.80 0.86 0.83 1.12 2.16

90 104 121 135 15171 90 100 152 327

98.8


60/69

Ratio Analysis FY 04 FY 05 FY 06 FY 07 FY 08E FY 09E FY 10E FY 11E FY 12

Gross Profit Margin 83.19% 87.92% 90.80% 74.15% 75.02% 82.70% 82.24% 80.08% 81.79%

EBIT Margin 52.80% 61.71% 67.46% 48.34% 59.91% 49.72% 50.54% 47.47% 49.13%

Net Profit Margin 41.99% 44.97% 47.32% 32.19% 42.45% 33.58% 33.20% 29.98% 33.11%

Return on assets 1.2% 2.1% 2.4% 1.3% 2.3% 1.7% 1.4% 1.2% 1.4%

Return on Equity 22.6% 37.5% 38.5% 20.1% 34.8% 25.1% ### ### ###

Debt to Equity 14.23 11.84 10.05 9.08 9.94 ### ### ### ###Advances-Deposits 64% 73% 76% 72% 76% 6% 28% 69% 71%

Investments-Deposits 33% 25% 26% 33% 23% 12% 24% 23% 23%

HBL snapshot

FY09 FY10 FY11 FY12 FY13

EPS Rs / sh 1.73 1.99 2.07 2.93 5.13

Earning growth -19% 6% -3% 27% 76%

Net Markup growth 3% 7% 7% 15% 17%

BVS Rs / sh 90 104 121 135 151

JPBV (x) 0.8 0.9 0.8 1.1 2.2

DPS Rs / sh 1.7 2.0 2.1 2.9 5.1

ROE 23% 37% 38% 20% 35%

ROA 1% 2% 2% 1% 2%


61/69

FY 13

97.77%

65.22%

49.78%

2.2%

###

###74%

21%


62/69

Segment by class of business % of total credit

Rs. In '000

Chemical and pharmaceuticals 4%

Agribusiness 7%

Textile 21%

Cement 3%

Sugar 1%

Shoes and leather garments 1%

Automobile and transportation equipment 2%

Financial 3%

Insurance 0.49%

Electronics and electrical appliances 2%

Production and transmission of energy 4%

Communication 3%

Food, tobacco and beverages 2%

Metal and allied 2%

General traders 4%Public / Government 12%

Individuals 12%

Others 17%

100%

Segment by sector

Public Sector / Government

Private

Total


63/69


64/69

Average Exposure FY05 FY06 FY07 FY08

15,496,004 7,765,594 13,535,885 15,808,612 24,873,923

27,342,454 24,718,863 28,741,089 26,529,983 29,379,882

84,061,659 88,119,657 67,573,527 84,870,295 95,683,155

13,628,039 15,825,769 11,634,842 11,946,461 15,105,085

3,723,468 2,811,858 3,008,195 3,305,601 5,768,216

2,442,132 2,146,467 2,227,085 2,639,371 2,755,605

8,670,638 5,558,713 6,581,219 10,210,505 12,332,114

12,088,057 7,841,136 6,554,976 13,946,049 20,010,068

1,977,476 1,366,689 544 147,375 463,412

8,972,125 5,459,798 4,136,724 11,535,122 14,756,854

17,785,593 382,455 9,723,078 22,126,554 38,910,286

12,119,702 9,393,230 10,053,207 12,458,423 16,573,949

8,092,006 8,875,115 12,442,520 5,189,308 5,861,079

6,597,243 8,839,886 9,892,396 3,183,021 4,473,669

14,333,820 5,170,920 14,092,624 13,757,752 24,313,98247,320,062 31,694,243 36,788,782 50,698,487 70,098,737

49,353,897 66,784,968 57,027,398 41,493,764 32,109,457

69,908,659 57,669,540 77,350,447 73,632,217 70,982,431

402,430,061 ### ### ### ###

31,694,243 36,788,782 50,698,487 70,098,737

284,947,735 334,575,756 352,780,413 414,353,167

316,641,978 371,364,538 403,478,900 484,451,904

17% 9% 20%

Chemical and p 74% 17% 57%

Agribusiness 16% -8% 11%

Textile -23% 26% 13%

Cement -26% 3% 26%

Sugar 7% 10% 74%

Shoes and leat 4% 19% 4%

Automobile and 18% 55% 21%

Financial -16% 113% 43%

Insurance -100% 26991% 214%

Electronics and -24% 179% 28%

Production and 2442% 128% 76%

Communication 7% 24% 33%

Food, tobacco a 40% -58% 13%

Metal and allied 16% -91% 41%

General traders 173% -2% 77%

Public / Govern 12% 412% 38%

Individuals -15% -27% -23%

Others 34% -5% -4%


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6% 9% 20%


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FY09 E FY10 E FY11 E FY12 E FY13 E

4,974,785 14,924,354 44,773,061 67,159,592.10 100,739,388.15

5,875,976 17,627,929 52,883,788 79,325,681.40 118,988,522.10

4,784,158 14,352,473 43,057,420 64,586,129.63 96,879,194.44

9,063,051 27,189,153 81,567,459 122,351,188.50 183,526,782.75

2,884,108 8,652,324 25,956,972 38,935,458.00 58,403,187.00

3,857,847 11,573,541 34,720,623 52,080,934.50 78,121,401.75

6,166,057 18,498,171 55,494,513 83,241,769.50 124,862,654.25

1,000,503 3,001,510 9,004,531 13,506,795.90 20,260,193.85

46,341 139,024 417,071 625,606.20 938,409.30

8,854,112 26,562,337 79,687,012 119,530,517.40 179,295,776.10

7,782,057 23,346,172 70,038,515 105,057,772.20 157,586,658.30

9,944,369 29,833,108 89,499,325 134,248,986.90 201,373,480.35

3,926,923 11,780,769 35,342,306 53,013,459.56 79,520,189.33

2,236,835 6,710,504 20,131,511 30,197,265.75 45,295,898.63

2,431,398 7,294,195 21,882,584 32,823,875.70 49,235,813.5570,799,724 106,199,587 159,299,380 238,949,070 250,896,523.24

4,816,419 14,449,256 43,347,767 65,021,650.43 97,532,475.64

21,294,729 63,884,188 191,652,564 287,478,845.55 431,218,268.33

### 406,018,593 1,058,756,399 1,588,134,599 2,274,674,817

70,799,724 106,199,587 159,299,380 238,949,070 250,896,523

99,939,669 299,819,006 899,457,019 1,349,185,529 2,023,778,294

170,739,393 406,018,593 1,058,756,399 1,588,134,599 2,274,674,817

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1% 50% 50% 50% 5%

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-65% 138% 161% 50% 43%


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habib bank limited- financial model

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