3. HUMBLE BEGINNINGS, 1947 – 1970
A LEGACY OF PUBLIC CONTROL, 1970 – 1980
BUSINESS AS USUAL, 1980-1990
PRIVATIZATION, 1990 – 1997
USHERING IN THE REFORMS, 1997 – 2006
THE POST-REFORM ERA, 2006 – PRESENT

4. STATE BANK • State Bank of Pakistan
NATIONALIZED SCHEDULED • National Bank of Pakistan
BANKS • Bank of Punjab
• Industrial Development Bank
SPECIALIZED BANKS
• Zarai Taraqiati Bank Limited
• Bank AL Habib
CARD ISSUERS
• MCB Bank Limited
• Bank AL Habib
COMMERCIAL BANKS
• Habib Bank Limited
• JS Investment Bank Limited
INVESTMENT BANKS
• IGI Investment Bank Limited
HOUSING FINANCE
COMPANIES • Asian Housing Finance Limited
• The First Micro Finance Bank Limited
MICRO FINANCE BANKS
• Tameer Microfinance Bank Limited
• Dubai Islamic Bank Pakistan Limited
ISLAMIC BANKS
• Meezan Bank Limited-Premier Islamic Bank In Pakistan

6. VISION
HISTORY
INTRODUCTION

7. Bank AL Habib was incorporated as a
Public Limited Company in October 1991
Started banking operations in 1992
In 2005, Bank AL Habib began offering
internet banking
In 2006, Bank AL Habib became partners
with MasterCard.

8. TO BE A QUALITY FINANCIAL SERVICE
PROVIDER MAINTAINING THE
HIGHEST STANDARDS IN BANKING
PRACTICES

9. TO BE A STRONG AND STABLE FINANCIAL
INSTITUTION OFFERING INNOVATIVE PRODUCTS
AND SERVICES WHILE CONTRIBUTING TOWARDS
THE NATIONAL ECONOMIC AND SOCIAL
DEVELOPMENT

11. To track individual firm
performance over time
To make comparative
judgments regarding firm
performance.

12. FINANCIAL RATIOS
PROFITABILITY RISK MANAGEMENT
LIQUIDITY RATIO
RATIO RATIO

13. RETURN ON
EQUITY
RETURN ON
EARNING PER ASSETS
SHARE
ASSET AVERAGE
UTILIZATION EARNING ASSETS
RATIO
NET INTEREST
EQUITY MARGIN
MULTIPLIER
NET NON
NET MARGIN
INTEREST MARGIN

14. ROE= NET INCOME / TOTAL EQUITY CAPITAL
HBL BAHL
0.2847
0.2759
0.2483
0.2350
0.2811
0.2044
0.1744
0.1937
0.1720 0.1784 0.1831
0.1552
2006 2007 2008 2009 2010 2011
2006 2007 2008 2009 2010 2011
BAHL 0.2847 0.2759 0.2483 0.2350 0.1552 0.1831
HBL 0.2811 0.1937 0.1720 0.1784 0.1744 0.2044

15. ROA= NET INCOME / TOTAL ASSETS
HBL BAHL
0.0214
0.0157 0.0158 0.0155
0.0195
0.0176
0.0153
0.0134 0.0140
0.0116
0.0086
0.0076
2006 2007 2008 2009 2010 2011
2006 2007 2008 2009 2010 2011
BAHL 0.0153 0.0157 0.0140 0.0116 0.0076 0.0086
HBL 0.0214 0.0134 0.0158 0.0155 0.0176 0.0195

16. AEA=LENDING TO OTHER FINENCIAL INSTITUTIONS + INVESTMENTS + ADVANCES
HBL BAHL
857781887
710354890
676482904
592382740
561743115
475570289
307371534
264080012
217003020
148726889
98398015 118623889
2006 2007 2008 2009 2010 2011
2006 2007 2008 2009 2010 2011
BAHL 98398015 118623889 148726889 217003020 264080012 307371534
HBL 475570289 561743115 592382740 676482904 710354890 857781887

17. NIM=TOTAL INTEREST INCOME -- TOTAL INTEREST EXPENSES / AVERAGE EARNING ASSETS
HBL BAHL
6.59%
6.41% 6.31% 6.46%
6.22%
5.58%
6.40%
4.43%
4.18%
3.84%
3.52%
2.95%
2006 2007 2008 2009 2010 2011
2006 2007 2008 2009 2010 2011
BAHL 3.84% 3.52% 4.43% 4.18% 2.95% 6.59%
HBL 6.41% 5.58% 6.22% 6.31% 6.46% 6.40%

18. NNIM = (TOTAL NON-INTEREST INCOME) – (TOTAL NON-INTEREST EXPENSES) / AVERAGE
EARNING ASSETS
HBL BAHL
2006 2007 2008 2009 2010 2011
-0.87%
-1.09%
-1.25% -1.21% -1.23%
-1.55%
-1.44%
-1.86% -1.81% -1.80% -1.81% -1.81%
2006 2007 2008 2009 2010 2011
BAHL -1.09% -0.87% -1.25% -1.55% -1.21% -1.23%
HBL -1.86% -1.44% -1.81% -1.80% -1.81% -1.81%

19. EM=TOTAL ASSETS / TOTAL EQUITY CAPITAL
HBL BAHL
21.38
20.33 20.50
18.59
17.62 17.79
14.40
13.15
10.91 11.50 10.49
9.91
2006 2007 2008 2009 2010 2011
2006 2007 2008 2009 2010 2011
BAHL 18.59 17.62 17.79 20.33 20.50 21.38
HBL 13.15 14.40 10.91 11.50 9.91 10.49

20. NM= NET INCOME / AVERAGE EARNING ASSETS
HBL BAHL
2.67%
2.42%
2.20%
1.98%
1.86% 1.83%
1.79% 1.80%
1.66%
1.33%
0.97%
0.86%
2006 2007 2008 2009 2010 2011
2006 2007 2008 2009 2010 2011
BAHL 1.79% 1.86% 1.66% 1.33% 0.86% 0.97%
HBL 2.67% 1.80% 1.83% 1.98% 2.20% 2.42%

21. AUR = TOTAL INTEREST INCOME + TOTAL NON-INTEREST INCOME (TOTAL OPERATING
REVENUE) / TOTAL ASSETS
HBL BAHL
0.1084
0.1010 0.1026 0.1020
0.0878
0.0807
0.0961 0.0959
0.0814
0.0711
0.0236 0.0223
2006 2007 2008 2009 2010 2011
2006 2007 2008 2009 2010 2011
BAHL 0.0236 0.0223 0.0961 0.0959 0.0711 0.0814
HBL 0.0878 0.0807 0.1084 0.1010 0.1026 0.1020

22. EPS = TOTAL REVENUE / TOTAL NUMBER OF SHARES
HBL BAHL
18.82
18.3
14.49 14.7
14.17
11.83
6.01
4.78 4.68
3.97
3.37
2.59
2006 2007 2008 2009 2010 2011
2006 2007 2008 2009 2010 2011
BAHL 4.78 6.01 3.97 4.68 2.59 3.37
HBL 18.3 14.49 11.83 14.7 14.17 18.82

24. EARNING ASSETS TO
DEPOSITS RATIO
EARNING ASSETS TO
TOTAL ASSET RATIO
CASH ASSETS TO
TOTAL ASSETS LOANS TO TOTAL
RATIO ASSETS RATIO
INVESTMENTS TO
TOTAL ASSETS
RATIO
CASH POSITION LIQUID ASSET
INDICATOR RATIO INDICATOR RATIO
CAPACITY RATIO
• DEMAND DEPOSIT

25. CA/TA = CASH ASSETS / TOTAL ASSETS
HBL BAHL
1.1325
1.1298
0.1392 0.1392
0.1385 0.1105 0.0701 0.0684
0.0920 0.1018 0.0877 0.0761
2006 2007 2008 2009 2010 2011
2006 2007 2008 2009 2010 2011
BAHL 0.0920 0.1018 0.0877 0.0761 0.0701 0.0684
HBL 0.1385 0.1105 0.1392 0.1392 1.1325 1.1298

26. BAHL is not up to the mark in case of Cash assets to total
assets which mean it has average of 0.4961 but HBL as
average of 2.7897 which is 2.2936 times more then BAHL.
It is just because they have incresed there cash
Assets along with them and other banks.

27. I / TA = INVESTMENTS / TOTAL ASSETS
HBL BAHL
0.6420
0.4549
0.3759
0.2506
0.2373 0.2762
0.2013 0.1884
0.2498
0.1828
0.0017 0.0000
2006 2007 2008 2009 2010 2011
2006 2007 2008 2009 2010 2011
BAHL 0.1828 0.2498 0.0017 0.0000 0.4549 0.6420
HBL 0.2013 0.2373 0.1884 0.2506 0.2762 0.3759

28. BAHL is playing more with its Investments which is not a
healthy sign.
HBL is following demand and supply matrix and other risk
factors.
After 2009 the BAHL rapidly increase and improve it’s this
ratio and become more liquid then HBL.

29. L/TA = LOANS / TOTAL ASSETS
HBL BAHL
0.7094
0.6156
0.5609
0.6623
0.5264
0.5882 0.4904
0.5097 0.3913
0.4243 0.4171
0.3052
2006 2007 2008 2009 2010 2011
2006 2007 2008 2009 2010 2011
BAHL 0.6156 0.5609 0.7094 0.4243 0.4171 0.3052
HBL 0.5882 0.5097 0.6623 0.5264 0.4904 0.3913

30. It is not a healthy sign because loan and advances give
interest income in return.
As banks comes under service industry and there main
income is basically Interest income.
Due to this reason BAHL NIM and NM is less then HBL.

31. EA/TA = EARNING ASSETS / TOTAL ASSETS
HBL BAHL
0.8556 0.8598 0.8687
0.8399
0.8008 0.8063
0.8387
0.8005
0.7832
0.7492
0.0256
0.0885
2006 2007 2008 2009 2010 2011
2006 2007 2008 2009 2010 2011
BAHL 0.8556 0.8399 0.8387 0.8687 0.0256 0.0885
HBL 0.8005 0.7492 0.8598 0.7832 0.8008 0.8063

32. BAHL have a fluctuating trend with respect to HBL .
In 2006 and 2007 BAHL had more earning assets then the
HBL.
Trend changed in up coming years.
Earning assets of BAHL are fluctuating but HBL’s earning
assets are increasing every yearly.

33. EA/D = EARNING ASSETS / TOTAL DEPOSITS
HBL BAHL
1.1465
1.0763 1.0331 1.0591
1.0300
0.9851
0.9800
1.0358 1.0573
0.9921
0.9908
0.0309
2006 2007 2008 2009 2010 2011
2006 2007 2008 2009 2010 2011
BAHL 1.0763 1.0331 1.0300 1.1465 0.0309 1.0591
HBL 1.0358 1.0573 0.9921 0.9908 0.9851 0.9800

34. BAHL and HBL both are on same trend when we talk about
this ratio
BAHL improves in this field from last year
HBL is still having the dicline pattren which is not a
healthy sign for the HBL but it is in the favour of BAHL
BAHL is increasing its earning assets which mean it is
more liquitable bank then the HBL.

35. CPI = CASH + DEPOSITS IN OTHER BANKS / TOTAL ASSETS
HBL BAHL
0.173
0.1627
0.1385 0.1392 0.1392
0.1018
0.1105
0.0920
0.0877
0.0761
0.0701 0.0684
2006 2007 2008 2009 2010 2011
2006 2007 2008 2009 2010 2011
BAHL 0.0920 0.1018 0.0877 0.0761 0.0701 0.0684
HBL 0.1385 0.1105 0.1392 0.1392 0.173 0.1627

36. For HBL this ratio represents severe upsand downs.
This ratio drastically falls below 0.79% in 2007.
The main reason was that in that year the bank’s balance
sheet shows nil amount of “money at called short notice”.
BAHL is facing this problem that there this ratio is
drastically falling below since 2008 till now
That mean BAHL may have to borrow money from other
bank’s at a high call money rate which in turn will increase
interest cost of the bank

37. LAI = LIQUID ASSETS (C+S) / TOTAL ASSETS
HBL BAHL
0.7043
0.5179 0.5057
0.3473 0.4087
0.2793 0.343
0.2705
0.3113
0.2641
0.0690
0.0576
2006 2007 2008 2009 2010 2011
2006 2007 2008 2009 2010 2011
BAHL 0.2641 0.3473 0.0690 0.0576 0.5179 0.7043
HBL 0.2793 0.3113 0.2705 0.343 0.4087 0.5057

38. BAHL is performing more from previous 2 years but on the
other hand HBL also improve but it need more attention.
According to this ratio BAHL have more liquidity
then HBL.

39. CR = NET LOANS ( LOANS-LOAN RESERVES) / TOTAL ASSETS
HBL BAHL
0.6156 0.6623
0.5609
0.5651 0.5264
0.5882
0.4904
0.5097
0.4243 0.3913
0.4171
0.3052
2006 2007 2008 2009 2010 2011
2006 2007 2008 2009 2010 2011
BAHL 0.6156 0.5609 0.5651 0.4243 0.4171 0.3052
HBL 0.5882 0.5097 0.6623 0.5264 0.4904 0.3913

40. 2006 to 2008 BAHL have more loans then HBL but after
2009 BAHL issues less loan and advances then HBL so thats
why its loan to total assets ratio is 0.91% less then HBL.
loan and advances give interest income in return.

41. DDR = DEMAND DEPOSIT / TOTAL DEPOSIT
HBL BAHL
0.8666 0.8357
0.7950 0.8130 0.8283
0.7904
0.8143 0.8129 0.8224
0.7729 0.7577
0.7086
2006 2007 2008 2009 2010 2011
2006 2007 2008 2009 2010 2011
BAHL 0.7950 0.8130 0.8143 0.7577 0.8283 0.8357
HBL 0.7729 0.7086 0.8666 0.7904 0.8129 0.8224

42. BAHL is performing well by improving its DDR which ultimately
mean that they are highly liquitable with respect to HBL.
that BAHL are not ncreasing there loans and investments but
there deposits are improving from there past record .
It mean that they have money but they keep it with them.
Which make them less risky and more liquitable bank.

44. NET LOAN
NON PERFORMING LOAN
% OF LOAN LOSSES
NET CHARGE OFF

45. %LL = PROVISION OF LOAN LOSSES / TOTAL LOAN AND LEASES
HBL BAHL
2.16%
1.93%
1.83%
1.76%
1.51%
1.60%
0.82%
0.58%
0.39%
0.12% 0.20%
0.03%
2006 2007 2008 2009 2010 2011
2006 2007 2008 2009 2010 2011
BAHL 0.03% 0.12% 0.20% 0.39% 0.58% 1.60%
HBL 0.82% 2.16% 1.51% 1.93% 1.83% 1.76%

46. NCO = GIVEN IN BALANCE SHEET
HBL BAHL
819,202 796,631
518,932
421,729
187,907
110,613
78116
1,629 1,929 23,508 91
709
2006 2007 2008 2009 2010 2011
2006 2007 2008 2009 2010 2011
BAHL 1,629 110,613 1,929 709 23,508 91
HBL 518,932 421,729 187,907 78116 819,202 796,631

47. NPL = PROVIDED IN FINANCIAL STATEMENTS
HBL BAHL
2,943,863
388.263 2,067.66 320,363
216.628 862.55 46,677.08
3,032.99 27,692.77 40,053.22 49,438.26 51,313.51
2006 2007 2008 2009 2010 2011
2006 2007 2008 2009 2010 2011
BAHL 388.263 216.628 862.55 2,067.66 2,943,863 320,363
HBL 3,032.99 27,692.77 40,053.22 49,438.26 46,677.08 51,313.51

48. NL = TOTAL LOAN / TOTAL ASSETS
HBL BAHL
0.6623
0.6156
0.5609
0.5264
0.5882 0.4904
0.5651
0.5097 0.3913
0.4243 0.4171
0.3052
2006 2007 2008 2009 2010 2011
2006 2007 2008 2009 2010 2011
BAHL 0.6156 0.5609 0.5651 0.4243 0.4171 0.3052
HBL 0.5882 0.5097 0.6623 0.5264 0.4904 0.3913

50. BAHL IS LESS PROFITABLE THEN HBL
BAHL HAS MORE LIQUIDITY THEN HBL
BAHL IS LESS RISKIER.