Lahore, February 28, 2022 (PPI-OT):Bank AL Habib Limited (“BAHL” or the “Bank”) 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 rating reflects the Bank’s improved performance, exceptional asset quality, satisfactory financial profile and healthy liquidity. The Bank’s customer deposits increased to PKR 1,256bln as at end-Sep’21 (end-Dec’20: PKR 1,083bln, end-Dec’19: PKR 890bln). Exceptional asset quality – lowest infection ratio in industry, maintained for last many years is reflective of Bank’s strength.

During CY21, the Bank’s net profit increased to PKR 18.7bln (Dec’20: PKR 17.8bln) driven by increase in non-markup income. Trade finance is the Bank’s hallmark. The rating draws comfort from the Bank’s experienced management team, prudent risk management policies and deep-rooted relationship with clients-borrowers as well as depositors. As at end-Sep’21, the Bank reported CAR of 13.9% (end-Dec’20: 15.1%). The bank’s entity rating was upgraded to AAA/A1+ in Jun’21.

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. The Bank is enhancing its footprints in the broad financial spectrum, which is essential to meet customers’ needs. Digital transformation is very important. BAHL is also into the acquirer business.

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