HABIB BANK LIMITED

INTRODUCTION:

On 25th of August 1941, Habib Bank inaugurated its operations with the bank’s first branch in Bombay. In 1947 Karachi saw its first commercial bank of the newly formed Islamic Republic of Pakistan, when the bank shifted its head office there.

It was HBL that introduced products such as Credit Cards, ATMs, Travelers Cheques, etc., to the Pakistani market. We at Habib Bank cater to the needs of millions with our quality products & services.

Today, Habib Bank is truly the bank of the people, providing its customers convenience and satisfaction all over the world. Today, HBL has more than 1,700 branches all over Pakistan and presence in 26 countries across five continents. With a revamped customer oriented philosophy, we are pursuing new avenues of leadership through innovation, as we gear up to face the challenges of the new millennium

Values:HBL is firmly grounded with a corporate philosophy that incorporates five solid values which each individual associated with the bank abides by.

HumilityWe encourage a culture of mutual respect and treat both our team members and customers with humility and care.

IntegrityFor us, integrity means a synergic approach towards abiding our core values. United with the force of shared values and integrity, we form a network of a well-integrated team.

MeritocracyAt every level, from selection to advancement, we have designed a consistent system of human resource practices, based on objective criteria throughout all the layers of the organization. We are, therefore, able to achieve a specific level of performance at every layer of the organization.

Teamworkour team strives to become a cohesive and unified force, to offer you, the customer, a level of service beyond your expectations. This force is derived from participative and collective endeavors, a common set of goals and a spirit to share the glory and the strength to face failures together.

Culture of innovationwe aim to be proactively responsive to new ideas, and to respect and reward the agents, leaders and creators of change

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BUSINESS GROUPS

Commercial banking Corporate investment and banking group Global treasury group International and overseas banking group Retail banking group

SUPPORT GROUPS Asset remedial management group Audit and investigation group Credit policy group Human resource group

COMMERCIAL BANKING

Introduction

Enterprises operating in the middle market contribute significantly to the economy of a country. Traditionally, this sector was the stronghold of HBL’s business. During the early 90s, with the liberalization of the financial sector in Pakistan, competition in the industry stiffened due to the emergence of new banks in the private sector. The senior management at most of these banks comprised personnel from HBL. They not only knew the market but were also familiar with the shortcomings of HBL. Under the new set-up, they were able to address these shortcomings and began to target HBL’s customer base. With the inception of an alternative, HBL customers started migrating to the newly established banks this causing the erosion of HBL’s market share.During FY-2000 HBL’s management decided to address this issue. Hence forth, Commercial Banking was created to focus on the business needs of the middle market customers. On November 1, 2000 Commercial Banking came into being, it is headed by Mirza Saleem Baig. At the time of inception twenty-one HBL branches were converted into Commercial Centers and Sub-Centers. They are located in Karachi, Lahore, Sialkot, and Faisalabad. Subsequently six more branches have been added to Commercial Banking bringing the total to 27.

Objectives

Objective of setting-up Commercial Banking was two-fold:

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First to stop the erosion of market share in the middle market; Second, to regain the lost market share

The strategy adopted to achieve the above objective was to position Commercial Banking segment as the “Trade Finance Bank” for its customers. The rationale behind this strategic decision was to capitalize on the existing marketing knowledge & strong contacts with the middle market customers, who were loyal to the HBL brand.

The product line of Commercial banking includes:

FUND BASED FACILITIES

Running Finance for Working Capital requirements (RF) Finance Against Packing Credit for Pre-shipment (FAPC)

Finance Against Foreign Bills for Post-shipment (FAFB)

Finance Against Imported Merchandise (FIM)

Finance Against Trust Receipt (FATR)

Demand Finance: Medium Term Loans (DF) ON-FUND BASED FACILITIES Letter of Credit (LC)

o DA ( Usance) o DP ( Sight)

Letter of Guarantee (LG)

Successful achievement of the strategy entailed addressing the following key issues:

← Developing a sales culture so that business was aggressively sought

← Improvement of Counter Service← Reducing the turnaround time on credit decisions← Training of staff to enhance credit and sales skills

Following initiatives were taken to address the above issues:Functionalization of branches into two key areas:

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Marketing and Operations

Implementation of a standard organization at Centers & sub-centers where by there were two key areas within operations:

Trade Counter Service i.e. Cash & Remittances De-layering of the Credit processing to ensure quick turnaround

on credit decisions Setting up of Relationship Management teams at all

Commercial Banking Centers to focus on procurement of business

Setting-up of Credit Administration Departments at all Centers for improved Risk Management

Training of staff in following key areas:o Credit o Trade Services o Computer literacy

Setting up of Asset Remedial management units at Lahore and Karachi to focus on management of classified accounts.

Impact of the steps

The decision to setup Commercial Banking has been fruitful. This is evident from the following results:Enhanced customer interaction by the branch management has now become possible after segregation of marketing and operations at the branch level. Decentralization of Credit Authority and streamlining of the processes have resulted in reduced turn around time. Currently decision making in this area is perhaps most efficient in the market place.Our strategy has allowed us to achieve our first objective; the trend of erosion in our market share has been reversed. We now would be looking at regaining our market share.

CORPORATE BANKING4

Only local bank with special focus on Corporate Banking with a presence in all major locations through out the country, offering full range of Banking products / services and one window interface through designated Relationship Managers. Our large equity base allows us to take longer per party exposures to meet the needs of the largest corporate & our extensive local & foreign network allows us to imperiously service our clients. Corporate manages well diversified portfolio, and include most of the top tier names of the market. Corporate Banking offers tailor made products / solutions as required by corporate customers which includes:

Funded facilities, ranging from short to medium and long term lending.

Trade related financing. Foreign currency financing. All sorts of non-funded facilities / services which include

Cash receipts / payments, Remittances, Collections, guarantees, letter of credit etc..

Customized products / solutions.

INVESTMENT BANKING

Habib Bank Limited (HBL) has positioned itself to be a leader across all investment-banking products from mergers and Acquisitions and strategic advice to Equity Capital Markets, Debt Capital Markets, Private Placements and Leveraged Finance.

HBL’s Investment Banking capabilities are designed to leverage its large capital base, product expertise and human capital to help its clients in meeting their strategic and operational objectives. With 55 offices in 26 countries around the world plus a local branch network exceeding 1425 offices, HBL Investment Banking Division is well positioned to service even the most sophisticated Investment Banking client.

HBL’s Investment Banking team is equipped to work on the following types of transactions on a domestic or cross-border basis:

Mergers, Acquisitions, Divestitures, Spin-offs, Equity Carve-Outs, Leveraged Buyouts, Strategic Alliances, Joint Ventures and Privatization.

Private Equity, Merchant Banking, Venture Capital and Financial Sponsors.

Initial Public Offerings, Secondary Offerings and Equity Private Placements.

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Domestic Bonds, Euro Bonds, Loan Syndications (> one year), Medium Term Notes (TFCs), High Yield, term Loans and Debt Private Placements.

Structured Products, Project Finance, Asset Backed Securities and Lease Finance.

Asset Management Companies and Funds

RETAIL BANKING

Habib bank auto finance Habib bank flexi loans Current account profit and loss sharing payment of utility bills i card life styles house finance master card lockers hajj/umra services

Habib Bank Auto Finance – Your Car, Your Terms

Habib Bank Auto Finance, offers the customer, an expedient and economical way of fulfilling his requirement of owning the car of his choice on his terms. This lease product has been designed to provide the consumer flexibility in terms of choice of car and tenure. Options of affordable down payments, convenient repayment arrangements in the form of monthly rental payments, which are tailored to the expected cash flows of the customer are some of the host of value added features, this product offers its customers.

Salient Features of HBL Auto Finance:

Low Mark-ups leading to affordable monthly rentals. Available throughout Pakistan Tenures ranging from 36 to 60 months

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Low Processing Charges Deferred Payment Option Financing of amounts up to Rs. 1.5 million Insurance premium rates as low as 3% Worldwide personal accidental insurance coverage for the

entire family of the lessee of up to Rs. 200,000/- Car choices of up to 1600 cc (New cars only)

Habib Bank FlexiLoans – Cash When You Need It

Habib Bank FlexiLoans is a personal loan product, which is available for salaried individuals for a variety of reasons. Whether it is for a child’s education, a much needed vacation, a daughter’s wedding or even just a shopping spree, HBL FlexiLoans is a flexible financing scheme which can actually provide the much needed cash to fulfill all such requirements.

Salient Features of HBL FlexiLoans: Low Mark-ups leading to affordable monthly installments.

Mark-up slabs vary for various categories of salaried individuals

Financing from Rs. 10,000 to Rs. 500,000/- Available throughout Pakistan from over 400 designated

Habib Bank branches Tenures ranging from 12 to 60 months Low Processing Charges Full Credit Life Insurance

Current account

Deposit Slab

 Indicative Rate 01.01.2001 to 30.06.2001

Minimum Balance no condition

NIL

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Eligibility

All Pakistani’s Resident/Non-Resident, Individuals (Single-Jointly) Companies/Firms etc. can open and operate the Account.

Any Foreign National Individuals (Single-Jointly) having valid Resident Pakistan VISA/Work Permit can open and operate the Account.

Requirements for Opening of Account Duly filled prescribed A/C opening FORM. Attested photocopy of N.I.C./Passport of Account

Holder(s), Proprietor, Partners, Directors and office Bearers as the case may be.

Certified true copy of the certificate of incorporation or registration (in case of limited companies & registered bodies only).

Certified true copy of the certificate of commencement of business (in case of public limited companies only).

Certified true copy of the memorandum and articles of association (in case of limited companies).

Certified true copy of rules and regulations or By-Laws (in case of association etc.).

Certified true copy of the resolution of the Board of Directors/Managing Committee/Governing Body regarding conduct of the account.

List containing names and signatures of the Directors/Office Bearers duly certified by CLA/Registration Authority.

Letter of partnership or certified copy of partnership deed (in case of partnership).

Features

Account can be OPENED with Minimum Balance Rs.1000/- with no maximum limit.

CHECKING ACCOUNT No profit is paid. SERVICE CHARGES Rs.180/- if average balance is less than

Rs.5, 000/- during half year. Statement of Account dispatched on quarterly basis or as

requested.

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There is no restriction for withdrawals of amount and number of Cheques.

Master Card:

Habib Bank MasterCard opens a world of convenience for you. Be it hopping or traveling or medical expense, HBL MasterCard sets you free from hassles of carrying cash.Facilities

Worldwide acceptability Up to 30% of your spending limit as cash advance Travel accident insurance coverage worth Rs. 2.5

million Photo feature to help avoid misuse

Habib Bank iCard – intelligent banking on the move

Habib Bank iCard provides you the facilities of both an ATM card as well as a debit card. It is an electronic wallet equipped with the following features:

Automated Teller Machines (ATMs)

Habib Bank iCard can be used not only at Habib Bank ATMs but also on more than 225 ATMs of twelve banks connected to 1 Link network, the largest ATM network of Pakistan. Through the ATM’s, customers have access to various services such as cash withdrawal, balance enquiry and mini statement. Soon funds transfer and utility bills payment facilities will also be available on Habib Bank iCard.

Debit Card facility at merchant locations:

Habib Bank iCard can also be used as a debit card at over a thousand merchant locations across the country including fuel stations, departmental stores, restaurants, travel agents, grocery stores etc. to make easy, convenient and secure payments. Using Habib Bank iCard as your debit card is very simple. The merchant swipes the card on the POS (Point of Sale) terminal and enters the sale amount. The customer selects the account type (savings/current) on the POS

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terminal and enters his/her Personal Identification Number (PIN). This purchase amount is then directly debited from the customer’s HBL account.

Debit card facility has been linked to Habib Bank iCard (Auto Cash Card) for a free period till 31st December 2003. During this free period you can enjoy the debit card facility on Habib Bank iCard without applying for it and any debit card transaction made on Habib Bank iCard during this free period will confirm the customer’s acceptance of this facility.

The debit card facility on Habib Bank iCard provides the following benefits:

No restriction on the number of daily transactions. Customers can make purchases up to Rs 100,000 per day.

Free of charge transactions. Only a standard service charge of 2.5% is applicable on fuel transactions.

No interest and zero liability. Quick, easy and convenient payment option. No hassle of

keeping a lot of money in the wallet or counting notes for making payments.

Safer than carrying cash Free of cost monthly statements including detailed record of

POS transactions with merchant name to track expenses. Transaction slip generated through the machine will be

provided by the merchant as a record of your payment. EBank customers can also track/view transactions online

through internet.

Habib Bank Lifestyles – All You Ever Wanted Now Easily Within Your Reach

Habib Bank’s Lifestyles Financing Scheme provides financing for household appliances and consumer electronics on easy terms and flexible tenures. The product aims to bring comfort into each domestic unit by providing financing for essential domestic items, the purchase of which may be postponed by households due to paucity of funds. The bank aims to provide speedy financing so that families do not defer purchase of such essentials, and all such items are effortlessly accessible as and when required.

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Salient Features of HBL Lifestyles:

Loans for salaried / self employed individuals or professionals

Low mark-ups leading to affordable monthly installments. Financing from Rs. 10,000 to Rs. 500,000/- Available throughout Pakistan from over 330 designated

Habib Bank branches Fixed tenures of 12, 18, 24 and 36 months Low Processing Charges Full Credit Life Insurance

Current Business Partners:

Samsung Audio Visuals Samsung Home Appliances Dawlance LG Philips Singer

Habib Bank House Finance – For a Home of Your Own

Habib Bank brings to you the most affordable and convenient scheme to finance your own house. Habib Bank – House Finance, a demand / running finance facility to assist you in turning your vision into a reality. With adaptable options, varying amounts and flexible tenures you can start shifting to, building or renovating your own house in a matter of weeks!

The Habib Bank – House Finance Scheme is an installment loan facility, secured by properties in residential areas. The scheme gives multiple options in the types of related financing one can avail. Through this product one can:

Purchase one’s own House – These are loans for the purchase of residential property for the purpose of self-occupation by the borrower in approved and developed areas.

Renovate one’s own House – These loans are against owner occupied residential property for home improvement and renovation.

Self Construct one’s own House – Financing for the construction of residential property within approved

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cities/areas, in approved and developed schemes – on already owned residential plots.

This scheme also offers a running finance facility, secured by an owned house in a residential area for:

House Re-Finance – This is a multi-purpose facility that can be availed by you as running finance to invest in your business or for personal purposes.

Salient Features of HBL House Finance:

The loan can be paid back in financing tenures ranging from 3 to 20 years.

The repayment of the loan is in equal monthly installments and is through direct debit authority or post-dated Cheques.

Per party limit for all options, other than Home Improvement are at a maximum of Rs.7.5 million. Home Improvement limits range from Rs. 5 lacs to Rs.3 million

Minimal Processing Charges

Habib Bank Debit Card

In addition to providing access to 1-Link - the largest ATM network in the country - now Habib Bank Auto Cash can also be used as a Debit Card at over a thousand merchants across the country to make easy, convenient and secure payments. Now you don’t have to carry cash for your purchases.

The Debit Card facility would provide the following unmatched benefits:

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Convenience Making purchases and payments is quick, easy and convenient - just swipe card through the Point of Sale (POS) terminal, entering the Personal Identification Number (PIN) and go!

Acceptability Habib Bank Debit card is accepted at over a thousand merchant locations including fuel stations, departmental stores, restaurants, travel agents, grocery stores etc. thus save from frequently visiting bank or ATM for withdrawing money.

Security It is safer than carrying cash as secret PIN code is used to authorize payment, which is known to person only.

Ease of Payment

It does not require keeping large sums of money on hand or the hassles of counting notes for making payment.

Free of charge transactions

Debit Card transactions are absolutely free of charge. A standard service charge of 2.5% is applicable only on fuel transactions.

Complete control

It keeps in complete control of the expenses as the transaction is authorized by directly debiting account and thus helps in sound and prudent financial management as anyone can spend whatever the amount he/she have in your accounts.

Free of cost monthly statement

All Debit Cardholders will be issued a free of cost monthly statement including detailed record of POS transactions with merchant name to help track expenses.

View Transactions Online

Our Ebank customers can also track / view their Debit Card transactions online through the internet.

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TREASURY

FX DESK:Habib Bank prides itself on being the bank of first choice for exporters wanting to encash their export proceeds. We offer the best rates in the market, and cut down our own spread in order to offer competitive rates for imports also. Our Treasury Marketing Unit is ready to quote very competitive rates for the following products:

Spot and Forward FX Cover for Import & Export (all major currencies)

Forward Bill Discounting (negotiating rates) Sale & Purchase of Government Treasury Bills and Pakistan

Investment Bonds.

Dealing Strengths

Our experienced dealers combined with the large FX flows accumulated in our 200 FX dealing branches gives us an edge over other banks.

We are the largest treasury in Pakistan in terms of $/PKR volume.

We are the lead providers of foreign exchange in Pakistan.

Money market desk

Backed up by one of the largest Balance Sheets in the country, our Money Market Desk transacts almost 20% of the daily volume in the Inter-Bank Money Market on average.

Primary Dealership

Habib Bank Limited enjoys primary dealership status with six other banks. Only primary dealers are authorized to participate in Government Paper Auctions (both short and

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long term). These papers are subsequently traded in inter-bank market and could be sold directly to customers.

We play a key role in market making of Pakistan Investment Bonds, T-Bills & FIBs.

HUMAN RESOURCES

HBL is an organization that provides opportunities for its staff to have a challenging and rewarding long-term career. To this end the Human Resources Group (HRG) encourages and motivates its employees to excel in the responsibility they have in the organization. We believe that creativity and innovation comes from talent, knowledge and experience and it is our endeavor to provide and maintain an environment which not only nourishes these strengths but also provides opportunities for the staff to have a career which has multidimensional growth opportunities.

In doing so, HRG has been restructuring and redesigning the overall structure of the organization, which includes rationalization, cutting down the decision layers, improvement in staff training, and hiring of professionals and MBAs at entry level management.

The overall direction of HRG has been towards nurturing the strengths of the human capital to its maximum with a defining principal to help create a progressive environment and sustain a thorough commitment of our staff towards focused customer service.

HRG therefore recognizes the need to proactively invest in staff training and development courses on a regular basis. Our Management Development Institute (MDI) is a unit, which regularly conducts technical and personal development courses for our staff enabling them to meet the challenges of the ever-changing business requirements, and customer needs. During 2002, 199 courses and seminars on diverse subjects were conducted for all levels of responsibilities of the Bank.

HR group aims to maintain and further improve the service-oriented culture and to make employment at HBL not only satisfying but enjoyable

BRANCH NETWORK

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Domestic Network:

Branches of bank are located in different cities of Pakistan which are: Karachi Lahore Rawalpindi Islamabad Faisalabad Peshawar Sialkot Multan Gujranwala Quetta Bahawalpur Mirpur (AK)Sukkur Hyderabad Jamshoro Sahiwal Sargodha Jhelum Mardan Gujrat Muzaffarabad (AK) D. G. Khan Haripur Wah Cantt Sheikhupura

COMMERCIAL CENTRES

Karachi - Cloth Market Karachi - Jodia Bazar Karachi – Napier Karachi – RAMBHARTI Karachi - Tariq Road Karachi – Nursery Karachi – Saddar Karachi - S.D.V.SUB-CENTER Karachi – Iddgah Lahore - Gulberg Main Market Lahore – Mall

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Lahore - Trust Plaza Lahore - Panorama Centre Lahore – LDA Lahore - Badami Bagh Sialkot - M.F. Ellahi Building Faisalabad - Circular Road Faisalabad - D'ground Peoples Colony

CORPORTAE CENTRES

Habib Bank Plaza, I.I. Chundrigar Road, Karachi. Habib Bank Centre, 102-103 Upper Mall, Lahore Habib Bank Tower, Blue Area, Islamabad Habib Bank Centre, Mezzanine Floor, Circular Road, Faisalabad Al-Sultan, Old Bahawalpur Road, Multan Airport Hotel, Karachi Airport, Karachi Bin Qasim, Karachi-75000 29, Kashmir Road (1st Floor) Rawalpindi Cantt. Post Office, Attock Refinery Ltd., Morgah, Rawalpindi

OVERSEAS NETWORK

AMERICA:

HABIB BANK LTD. Suite 535 60 East 42nd Street NEW YORK,NY 10165

AFRICA:

HABIB BANK LTD. P.O. BOX 49501 KIMATHI STREET, NAIROBI KENYA

HABIB BANK LTD. P.O. BOX 505 6 SIR WILLIAM NEWTON STREET Port Louis, MAURATIUS

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HABIB BANK LTD. QASR STREET P.O.BOX 8246 KHARTOUM, SUDAN

SHEHU MUSA YAR’ADUA HOUSE 7-9 BANK ROAD PMB 2180 KADUNA-NIGERIA.

EUROPE:

HABIB BANK LTD. (REGIONAL OFFICE,CONTINENTAL EUROPE & BEIRUT, LEBANON) 19, RUE-DE-LA-LOI 1040- BRUSSELS, BELGIUM

HABIB BANK LTD.125, AVENUE DES CHAMPSELYSEES, 75008, PARIS- FRANCE

HABIB BANK LTD. 1ST FLOOR, FADALLAH CENTRE EL-CHIAH BLVD P.O.BOX 11-5616 BEIRUT, LEBANON

HABIB BANK LTD. WESTBLAAK 127 3012 KJ ROTTERDAM THE NETHERLANDS

HABIB BANK LTD. ABIDE-HURRIYET CADDESI GECIT SOKAK NO.12 P.O.BOX NO.8 SISLI (80222) ISTANBUL

ASIA-PACIFIC:

HABIB FINANCE (AUSTRALIA) LTD LEVEL 5. THE LAND MARK BLDG. 345 GEORGE STREET G.P.O. BOX 4053 SYDNEY NSW 2000, AUSTRALIA

HABIB BANK LTD. 53,MOTIJHEEL COMMERCIAL AREAP.O.BOX 201, DHAKA-BANGLADESH

HABIB BANK LTD. 1017, 1018, LALDIGHI EAST P.O.BOX 222 CHITTAGONG

HABIB BANK LIMITED LEVEL 3,140-142, SECOND ROSS STREET COLOMBO II SRI LANKA

140-142, 2ND CROSS STREET COLOMBO II SRI LANKA HABIB BANK LTD. NO.3, PHILLIP STREET # 01-03 COMMERCE

POINT SINGAPORE HABIB FINANCE INTERNATIONAL LTD., 9TH FLOOR, V. HEUN

BLDG. 138,QUEENS ROAD CENTRAL G.P.O. BOX 11282, HONG KONG

KARAMCHARIA SANNCHARYA KOSH BUILDING TRIDEVI MARGTHAMEL, GPO BOX 20590 KTM KATHMANDU-NEPAL

MIDDLE EAST:

EVP & RGM HABIB BANK LIMITEDREGIONAL OFFICE P.O.BOX 566MANAMA-BAHRAIN

HABIB BANK LTD.P.O.BOX 221661078 AVENUE, 10, BLOCK 215 MUHARRAQ, BAHRAIN

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SVP & COUNTRY MANAGER HABIB BANK LIMITED REGIONAL OFFICE QURRUM HOUSE NEW MBD AREA (SOUTH) P.O.BOX 1326, P.C. 112 RUWI SULTANATE OF OMAN

HABIB BANK LTD. P.O.BOX 12508 DHAID SHARJAH HABIB BANK LTD. CORNICHE ROAD P.O.BOX 897 ABU DHABI HABIB BANK LTDAL KALANTAR TOWER SHEIKH ZAYED ROAD

P.O.BOX 27321 DUBAI KOYE NASR (GEESHA) BUILDING NO.170/4 2ND FLOOR P.O.

BOX 14395-739 TEHRAN-IRAN

REFERENCES:

Financial report 2003 Habib bank website

No. Title Page #

1. INTRODUCTION 1

2. VALUES 2

3. BUSINESS GROUPS 2

4. SUPPORT GROUPS 2

5. COMMERCIAL BANKING 5

6. CORPORATE BANKING 5

7. INVESTMENT BANKING 6

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8. RETAIL BANKING 6

9. PRODUCTS AND SERVICES 6

10. TREASURY 14

11. HUMAN RESOURCES 15

12. HABIB BANK NETOWRK 16

13. REDERENCES 19

Title of Contents

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