H ABIB M METROPOLIT AN B B ANK (A S Subsidiary o of H bank A Zurich) Habib b AG Z
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H ABIB M METROPOLIT AN B B ANK (A S Subsidiary o of H bank A Zurich) Habib b AG Z
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Institution:
Submitted by: Muhammad Adnan Roll No 126 Class Bs (IT) 2013-17 Submitted to: Dr, Nadeem Ahmad
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ACKNOWLEDGEMENT
All gratitude and thanks to almighty ALLAH the gracious, the most merciful and beneficent who gave me courage to undertake and complete this task. I am very much obliged to my ever caring and loving parents whose prayers have enabled to reach this stage. “
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I am grateful to almighty “ ALLAH” who made me able to complete the work presented in this
report. It is due to HIS unending mercy that this work moved towards success. I am highly indebted to my course instructor Dr. Nadeem Ahmad for providing me an opportunity to learn about the Banking system of HABIBMETRO BANK which is vital ingredient of MBA program. I am very great full to my teacher Dr.Nadeem Ahmad for providing me guideline for the completion of this report. I feel great pride and pleasure on the accomplishment of this report.
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Preface Banking sector owes a pivotal importance in the economy of any country through its vibrant functions. This is the deep seated motivator that geared up me to join any bank for internship. Moreover, the practice and familiarity learned during this tenure would also attest very helpful and alleviating in the awaiting proficient life. This report is an upshot of my eight weeks internship in Habib Metro Politian Bank limited Bahawalpur road Mandi Yazman Habib metro Bank possess an imperative importance in the banking sector of Pakistan. It always remains the center of hustles in business activities. It always endows with great covenant of rally round in terms of funds and services at all epochs of its dynamism. Although, a derisory period of six weeks is not enoug h to learn the complex operations of Habib Metro Bank Limited yet I made industrious efforts to converse them comprehensively in this report. Particularly, I have remunerated more accents on study of distinguishing features and services of Habib Metro Bank Limited. I have made maximum venture to elaborate this report with the material read, listened and observed. I have strong belief that this report will guide and ease the readers to understand the operations of banking system and more prominently have good knowledge about Habib Metro Bank Limited, one of the most trusty and leading banks in Pakistan. Dear readers, I hope that you will appreciate my report and sense that reading my report is not like to waste the time in any respect.
Muhammad Adnan Roll NO 126 Bs (IT) 2013-2017
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Contents:
DESCRIPTION
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EXECUTIVE SUMMARY
Economic and banking review ………………………………………..07 Habib Metropolitan Bank History & Introduction…………………………………………...08
Vision……………………………………………………………..09 Mission…………………………………………………………...10 PACRA maintains maintains ratings of Habib metropolitan…………………...11
Bank ltd
Achievements…………………………………………………………...12 Achievements……………………………………………… …………...12 Corporate Information……………………………………………….....12
i.Board of Directors....................................................................12 ii.Chairman..................................................................................12 iii.Directors...................................................................................12 iv.Audit Committee.......................................................................12 v.Company sectary......................................................................12 Competitors.....................................................................................13 PRODUCTS.........................................................................................14 vi.HMB Premium Deposit Scheme...............................................14 vii.Basic Banking Account .................................. .................. ................................... .........................15 ......15 viii.HMB Access (ATM / Debit Card) .............................................16 ix.HMB Auto Finance ...................................................................16 x.HMB Auto Lease ......................................................................16 xi.HMB Call Account ....................................................................17 xii.HMB Current Account ..............................................................17 xiii.HMB Education Loans .............................................................18 xiv.HMB Izafa Certificate................................................................18 xv.HMB Multiplier Account ............................... ............... ................................... ............................18 .........18 xvi.HMB Mahana Scheme ................................... ................. .................................. .........................19 .........19 xvii.HMB Personal Loans ................................. ................. ................................... ...........................19 ........19 xviii.HMB Saving Account ................................ ................. .................................. ............................19 .........19 xix.PLS Saving Account with Free Life Insurance..........................20 xx.Super Current Account ............................................................ 20 xxi.HMB MAKRO Prepaid Card......................................................21 xxii.Jubilee life insurance………………………… insurance………………………………………………22 ……………………22
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Services ..........................................................................................22 Cash Management Services ......................................................22 E-Salary Accounts .......................... ......... ................................... ................................... .........................22 ........22 HMB Call Centre .........................................................................23 HMB GSM Mobile Banking .........................................................23 HMB Rent Free Lockers .............................................................24 HMB Tele Info Service ................................... .................. .................................. ............................24 ...........24 HMB Web Info Service ................................... .................. .................................. ............................24 ...........24 POS (Point of Sale) Machine ......................................................25 Short / Long Term Finance ............................. .............. ................................ ...........................25 ..........25 Financials..........................................................................................28 Branches & ATMS ............................................................................29 Electronic Banking ............................................................................30 Internet Banking............................................................................30 Phone Banking ................................ ................ ................................... ................................... ........................30 ........30 International Banking .........................................................................31 Corporate Bank Network................................................................31 Foreign Remittances......................................................................33 Swift Banking .................................. ................. .................................... ................................... ..........................36 ..........36 Islamic Banking...................................................................................37 HMB Islamic Banking.....................................................................37 Islamic Banking Products...............................................................38 Financing Products.........................................................................38 Islamic Banking Branches..............................................................38 Shariah Adviser..............................................................................39 Rates & Exchange .............................................................................39 Deposit Rates................................................................................39 Exchange Rates............................................................................40 Corporate Information Snap Short......................................................43 SWOT ANALYSIS...............................................................................45 PEST ANALYSIS………………………………………………………….49 RISK MANAGEMENT……………………………………………………..51 RECOMMENDATIONS……………………………………………………53 CONCLUSION……………………………………………………………..54
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EXECUTIVE SUMMARY
The banking structure in Pakistan comprises of the following types, State Bank of Pakistan, Commercial Bank of Pakistan; Exchange Banks, Saving banks, Cooperative banks, specialized credit institutions. The state bank of Pakistan is the Central bank of the country and was established on July 01, 1948. The network of bank branches now covers a very large segment of national economy. The State Bank of Pakistan issues the shares of these periodically. Bank employees and other common peoples can also purchase these shares and earn profit. To open an account the customer has to meet the general banking manager with an introducer. The procedure begins with the punching of account opening form to the customer file i.e. customer’s master file. Before closing any account, bank send letter to the account hold for informing him that his account is going to be closed. There is need an approval form higher authority to close any account. Current deposits are those which are payable to bank whenever demanded by the customer. Bank does not pay any profit on current deposits. The following are the financial products/services of PLS Account, Saving Account, Term deposit and Foreign currency accounts. In remittance department like any other Habib Metro Politian Bank Limited also have instruments for transferring of money, Telegraphic Transfer, Mail Transfer. In cash department both deposits and withdrawals go side by side. This department works under the CD In charge and deals with cash deposits and payments. This department maintains the following sheets, books, and ledger of account cash received voucher sheet. Cash paid voucher sheet, Paying-in-slip, Cheque Book, Cash balance book. The clearing in Karachi at Habib Metro Politian Bank Limited or other banks is being done through NIFT (National Institute of Facilitation Technology). Bank provides this facility to the people who need advance money to meet their requirement. Party dealing with other banks financial condition of borrower business and as a first step credit proposal is being made Habib Metro Politian Bank Limited provides advances, which are two types. Secured Advances, Unsecured Advances. Habib Metro Politian Bank Limited usually classified advances in to following types Commercial Advances, Corporate/SME’s Advances, Agricultural Advances. Commercial Advances are of following types Demand Finance, Cash Finance, Export Refinance Part I (Pre Shipment) & others. Banks Agriculture division deals with the agriculture advances. Bank provides the Agriculture Advances in order to enhance and support the agriculture sector of the country. Farm Credit & Non-Farm Credit. In foreign exchange, Habib Metro Politian Bank Limited is dealing Foreign Currency Accounts, Foreign Remittances, and Foreign Bills for Collection, Imports & Exports Foreign currency accounts & the foreign currency department deals with the following types of accounts, Current account, saving bank account, Term deposit. Foreign accounts are convertible on floating rate available to the bank. Letter Of Credit facility is being provided by Habib Metro Politian Bank Limited in foreign exchange.
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Banking? It has not so far been decided as to how the word ‘Bank’ originated. Some authors opine that this word is derived from the words ‘Bancus’ or Banque’ which mean a bench. Other authorities hold the opinion that the word ‘Bank’ is derived from the German word ‘Back’, which means ‘joint stock fund’. It is therefore, not possible to decide as to which of the opinion is correct, for no record is available to ascertain the validity of any of the opinions The term bank is being used for a long time yet it has no precise definition. The basic reason is that the banks perform not just one but many types of functions originally the banks were supposed to make short term loans to the traders only. The banks now not only make short term loans to the formers, traders, industrialist etc. But also invest in a wide variety of long term earning assets. The commercial banks also undertake and execute trust, deal in stock, shares and debentures, issue guaranties and indemnities underwrite and sell new securities, and deal in foreign exchange etc. Banking industry acts as life-blood of modern trade and commerce acting as a bridge to provide a major source of financial intermediation. However some of the definitions of bank from different authors are as follows. Depository financial institution: a financial institution that accepts deposits and channels the money into lending activities; "he cashed a check at the bank"; "that bank holds the mortgage on my home"
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Type of Banks in Pakistan State
Central bank or state bank. Commercial bank. Exchange bank. Industrial bank. Agriculture bank. Investment bank. Saving bank.
CENTRAL BANK
Every country has its central bank or state bank. Its major function is to carry out a country’s
monetary policy with an aim to safeguard its financial and economic stability. It has the monopoly of note issue. It is also the custodian of money market. State bank is the Banks bank and lender to the government. COMMERCIAL BANK
Commercial banks are profit earning concerns. They receive deposits and advance loans to the borrows. They greatly help in financing for internal and external trade of the country. EXCHANGE BANK
The main function of the exchange bank is to finance the foreign trade by the purchase and sale of foreign currencies in the form of drafts, bills of exchange, telegraphic transfers. They also perform the function of commercial bank. Receiving deposits and advancing loans. INDUSTRIAL BANKS
Commercial bank cannot afford to block their funds in long term investments. The industrial banks receive long term deposits and finance the industries by providing them long term credits. In Pakistan the Industrial bank named as Industrial Development Bank of Pakistan (I.D.B.P) was established in 1961 for this purpose.
AGRICULTURAL BANK
Agricultural bank provides short and long period loans for financing agriculture. The agriculturists need short and long term loans for meeting their day to day and long term requirements for making permanent improvement in the land. In Pakistan Agricultural Bank is named as Agricultural Development bank of Pakistan (A.D.B.P) and it was established in 1961
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INVESTMENT BANK
The main function of investment bank the merchandising of shares and other securities, managing and distributing the issue of shares and other securities. SAVING BANKS
These are the institutions which are sponsored by the government for having facilities to the people and small means. These bank collect small saving of people and allow them to withdraw in small amounts. Also another institution i.e. National Savings is working in the same capacity.
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History of Banking in Pakistan
Banking in fact is primitive as human society, for ever since man came to realize the importance of money as a medium of exchange; the necessity of a controlling or regulating agency or institution was naturally felt. Perhaps it was the Babylonians who developed banking system as early as 2000 BC. IT is evident that the temples of Babylon were used as ‘Banks’ because of the prevalent respect and confidence in the clergy. The partition plan was announced on June 3, 1947 and August 15, 1949 was fixed as the date on which independence was to take effect. It was decided that the Reserve bank of India should continue to function in the dominion of Pakistan until September 30, 1948 due to administrative and technical difficulties involved in immediately establishing and operating a Central Bank. At the time of partition, total number of banks in Pakistan were 38 out of these the commercial banks in Pakistan were 2, which were Habib Bank Limited and Australia Bank of India. The total deposits in Pakistani banks stood at Rs.880 million whereas the advances were Rs.198 million. The Governor General of Pakistan, Muhammad Ali Jinnah issued the order for the establishment of State Bank of Pakistan on 1st of July 1948. In 1949, National Bank of Pakistan was established. It started with six offices in former East Pakistan. There were 14 Pakistani scheduled commercial banks operating in the country on December 1973, the name of these were
National Bank of Pakistan
Habib Bank Limited
Habib Bank (Overseas) Limited
United Bank Limited
Muslim Commercial Bank Limited
Commerce Bank Limited
Australia Bank Limited
Standard Bank Limited
Bank of Bahawalpur Limited
Premier Bank Limited
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Pak Bank Limited
Lahore Commercial Bank Limited
Sarhad Bank Limited
Punjab Provincial Co-operative Bank Limited
The Pakistan Banking Council prepared banks amalgamation schemes in 1974 for amalgamation of smaller banks with the five bigger banks of the country. These five banks are as under:
National Bank of Pakistan
Habib Bank Limited
United Bank Limited
Muslim Commercial Bank Limited
Allied Bank Limited
So, through the Nationalization of Bank Act 1974, the State Bank of Pakistan, all the commercial banks incorporated in Pakistan and carrying on business in or outside the country were brought under the government ownership with effect from Jan. 1, 1974. The ownership, management, and control of all banks in Pakistan stood transferred to and vested in the Federal Government. The Finance Minister announced plans to start Islamic Banking system in Pakistan in the budget speech on June 26, 1980, but it could not be possible till August, 2003.
STATE BANK OF PAKISTAN
The State Bank of Pakistan is the central bank of the country. Usually the starting point for a central bank is a banking system that is already in place - the banking system necessitates the presence of a central bank. But the State Bank of Pakistan (SBP) is unique in the sense that it started its function in a newly born country, where it also had to shoulder responsibilities of developing and rehabilitating a banking system and the economy, in addition to the traditional central banking functions. Performance of the Bank since its inception in 1948, as reviewed in subsequent pages, shows that it has faced all the challenges with a great zeal and commitment. The founders of the Bank set a multidimensional target before it that included not only regulation of the monetary and credit system but also the growth of this system. The vision of its founders was a stable monetary system in Pakistan with fuller utilization of the country’s productive resources (SBP Act, 1956).
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In order to achieve the goals set before it, the State Bank of Pakistan performed all the traditional and non-traditional functions. The traditional functions, which are generally performed by central banks all over the world, are classified into two groups; the primary functions including issue of notes, regulation of the financial system, lender of the last resort, and conduct of monetary policy,
the secondary functions including management of public debt, management of foreign exchange, advising the Government on policy matters, anchoring payments system, and maintaining close relationships with international financial institutions.
In the subsequent page, all these functions are shown in a flow chart
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Vision and Mission of STATE Bank of Pakistan Our Vision To transform SBP into a modern and dynamic central bank, highly professional and efficient, fully equipped to play a meaningful role, on sustainable basis, in the economic and social development of Pakistan
Our Mission To promote monetary and financial stability and foster a sound and dynamic financial system, so as to achieve sustained and equitable economic growth and prosperity in Pakistan.
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Governors of the SBP
NIFT-National Institutional Facilitation Technologies NIFT-National Institutional Facilitation Technologies (Pvt.). Ltd. was incorporated in September 1995 as joint venture between a consortium of six banks and entrepreneurs from the private sector. All commercial banks and all of branches in major cities avail NIFT’s services. As of June 2005, 43 commercial banks and their 3000 branches in 9 major cities utilize NIFT’s services. NIFT has setup elaborate data centers geared to provide automated services for document processing particularly in the payment arena. Modern image based facilities have been established at Karachi, Lahore, Islamabad, Peshawar, Rawalpindi, Hyderabad, Multan, Faisalabad and Quetta. The services include cheques clearing, collection & delivery, reconciliation, ‘return’ (unpaid) cheques pr ocessing, same day clearing (express – 2 hrs. clearing service), intercity clearing and inter branch & inter bank settlement. Services are provided at individual branch level to over 3000 branches in nine major cities and 30 smaller cities.
NIFT also provides exclusive item processing services to financial institutions and turnkey clearing preparation support to selected banks. d ivision has NIFT, e-TRUST a division of NIFT is a Certification Authority of Pakistan. This division establishes facilities to provide PKI (public key infrastructure) based security solutions for ebusiness, e-commerce, e-banking and e-government as an affiliate of VERISIGN Inc. USA and WORLDeTRUST , Geneva. - NIFT has incorporated a wholly owned subsidiary ‘Image Systems Marketing (Pvt.) Ltd.’ (ISM) to offer image archiving and data warehousing services to large corporations. For this purpose reseller agreements have been signed with corporations in USA and Europe to offer services in Pakistan, Bangladesh, Gulf and Middle East. ISM
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Mission We will draw from the respect we have earned as Trusted Third Party Processor and will become a distinctive organization known for innovative use of technology to continually improve products and services for the benefit of our customers and their customers and keep them abreast with times to compete in the global society. Vision We focus on our customers as an active component in growth process. We continue to offer services that expand their access to excellent and affordable technologies. Our qualified and experienced workforce must work closely with our customers to continually enhance their confidence and trust in us.
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ISLAMIC BANKING IN PAKISTAN Islamic banking has been defined as banking in consonance with the ethos and value system of Islam and governed, in addition to the conventional good governance and risk management rules, by the principles laid down by Islamic Shariah. Interest free banking is a narrow concept denoting a number of banking instruments or operations, which avoid interest. Islamic banking, the more general term is expected not only to avoid interest-based transactions, prohibited in the Islamic Shariah, but also to avoid unethical practices and participate actively in achieving the goals and objectives of an Islamic economy. Steps for Islamization of banking and financial system of Pakistan were started in 1977-78. Pakistan was among the three countries in the world that had been trying to implement interest free banking at comprehensive/national level. But as it was a mammoth task, the switchover plan was implemented in phases. The Islamization measures included the elimination of interest from the operations of specialized financial institutions including HBFC, ICP and NIT in July 1979 and that of the commercial banks during January 1981 to June 1985. The legal legal framework of Pakistan's financial and corporate system was amended on June 26, 1980 to permit issuance of a new interest-free instrument of corporate financing Named Participation Term Certificate (PTC). An Ordinance was promulgated to allow the establishment of Mudaraba companies and floatation of Mudaraba certificates for raising risk based capital. Amendments were also made in the Banking Companies Ordinance, 1962 (The BCO, 1962) and related laws to include provision of bank finance through PLS, markup in prices, leasing and hire purchase. Modes of Islamic Banking in Pakistan
Murabaha
Ijarah
Ijarah-wal-iqtina
Musawamah
ISTISNA A
MUDARABAH
MUSHARAKAH
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Economic and banking review During the year 2009, our country s trade balance reflects healthy improvement mainly on account of reduced cost of imports. With the International Monetary Fund’s Stand-By Arrangement (SBA) and a commitment expressed by the global community to extend monetary aid to Pakistan, the country s foreign exchange reserves have increased significantly, although the rupee continues to depreciate against the dollar. Weakening domestic demand, reduced commodity prices and lower government borrowing from the SBP has also led to a reduction in core inflation. The country s stock exchanges have managed to regain the investors’ confidence after dismal look in 2008 and the market index reflects a positive sentiment. Further, remittance inflows from overseas Pakistanis have remained strong which provided positive support to the economy. These factors, as well as several ongoing policy and structural reforms resulted in improvement in Pakistans international ratings by Moody s from Negative to Stable outlook. Although the potential economic crisis has been averted and the economy has stabilized, the country s manufacturing and export activities continue to remain under pressure. Power shortage remains a fundamental detriment to economic growth for which various short and long-term measures are being taken by the government. This is a matter of utmost priority as the rising costs of input needs to be kept under control to compete in the international markets. The economy is also facing severe pressure due to the ongoing war on terror and the rehabilitation of Internally Displaced Persons (IDPs).
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Habib Metropolitan Bank History & Introduction Habib Metropolitan Bank was incorporated in Pakistan as a Public Listed Company in 1992 under the name, Metropolitan Bank Limited. The Bank commenced, duly licensed, full scheduled commercial-banking operations in October 1992. Metropolitan Bank, from October 1992 to September 2006, remained a highly rated bank and, vide its nationwide 51-branch on-line network, established as a distinguished provider of trade finance services. On October 26, 2006 Habib Bank A G Zurich’s Pakistan Operations merged merged into
Metropolitan Bank Limited and the merged entity was named Habib Metropolitan Bank Limited (HMB). Demonstrating a strong commitment to Pakistan economy, HBZ is the principal shareholder of HMB. HMB operates in all major cities of the country. The Bank ranks within Top 10 in Pakistan with a strong vision to be the most respected Financial Institution. HMB has its primary focus on retail banking and trade finance and also offers highly innovative E-Banking solutions and Consumer Banking to its customers. The Bank’s Islamic Banking Division is fully capable of catering to customers seeking Shariah compliant products. The HBZ Group is heir to a rich tradition of banking and commerce dating back to more than 160 years. The group’s flagship and HMB’s principal, HBZ (incorporated 1967) enjoys International ranking of 687 in terms of capital. With Headquarters in Switzerland, the HBZ Group also operates in Hong Kong, Singapore, United Arab Emirates, Kenya, South Africa, United Kingdom and North America. The Pakistan Credit Rating Agency (PACRA) has allotted both long-term and short-term ratings of Habib Metropolitan Bank Limited at “AA+” (Double A plus) and “A1+” (A one plus), respectively. These ratings, being the highest amongst the local sector Private Banks, denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.
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Vision Statement “Based on a foundation of trust, to be the most respected financial institution,
delighting customers with excellence, enjoying the loyalty of a dedicated team, meeting the expectations of regulators and participating in social causes while providing superior returns to shareholders.”
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Mission Statement
"The Mission of the Habib metropolitan Bank B ank is to foster a sound s ound economic and financial environment which promotes the development of its it s stakeholders and encourages a culture of excellence and leadership."
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PACRA MAINTAINS RATINGS OF HABIB METROPOLITAN BANK LTD. (HMB) The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term entity ratings of Habib Metropolitan Bank Ltd. at “AA+” (Double A plus) and “A1+” (A one plus) respectively. These ratings denote a very low
expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments. The ratings reflect the strong position of the bank in its respective niche – self-liquidating trade finance to corporate and SMEs. While consolidating its strength, the management continues to focus on product innovation, enhanced reach through network expansion, and technology up-gradation for ensuring quality services to its customers, thereby retaining its relative positioning in the face of intensifying competition within the sector. The bank continues to maintain outstanding asset quality – an outcome of conservative risk appetite as well as effective risk management. management. The ratings also also take into account the bank’s association with a geographically diversified international sponsoring group – Habib Bank
AG Zurich (HBZ). About the bank: HMB, commencing operations in 1992, is listed on all bourses of Pakistan. Subsequent to recent merger, the bank is a 51% owned subsidiary of HBZ, incorporated in Switzerland. HBZ, with consolidated assets of above US$6bln, has operations in eight countries directly and through subsidiaries. This provides inherent strength to the bank given high credibility and standing of HBZ. The Chief Executive of the bank is a former Governor of the State Bank and also a former f ormer president of Habib Bank Limited, one of the largest banks in the country. A highly professional team of senior executives including the executive director, who has emerged as the key professional in evolving the bank’s strategy as well as its implementation, assists the
chief executive. The primary function of PACRA is to evaluate the capacity and willingness of an entity to honour its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks ris ks associated with a particular instrument or an entity.PACRA’s entity.P ACRA’s comprehensive offerings Page | 24
include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate grading. PACRA’s opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security’s market price or
suitability for a particular investor.
Achievements These above credit ratings denote HMB is one of the top ten banks banks in Pakistan A very high credit quality, A very low expectation of credit risk and A very strong capacity for timely payment of financial commitments.
Corporate Information: Board of Directors Chairman
& President
Kassim Parekh Chief
Executive
Anjum Iqbal Directors
Muhammad H.Habib Raza S. Habib Bashir Ali Muhammad Anwar H. J apanwala Ronaid V. Emerson Firasat Ali Mohamedali R. Habib (Executive Director) Audit
Committee
Reza S. Habib Kassim Parekh Mohamedali R. Habib Company
Secretary
Muhammad Imran
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PRODUCTS Page | 26
1. HMB Premium Deposit Scheme: HMB now offers yet another highly attractive attr active investment opportunity for our valued account holders. HMB Premium Deposit Scheme offers profit rates up to 12.35% per annum. You may deposit your funds for 1, 3 & 5 years, with quarterly and half yearly profit payment options to suit your need. Who can avail this Opportunity?
There are no restrictions as to the eligibility of depositors and the scheme is open for any investors / account holder. Indicative Profit Rates:
On a deposit of Rs. 100,000/- the profit will be paid as under. Tenor Rate p.a 1 Year 3 Year 5 Year
Quarterly Profit Half Yearly profit Amount (Rs) Rate p.a Amount (Rs) 12.00% 3,000 12.20% 6,100 12.20% 3,050 12.30% 6,150 12.30% 3,075 12.35% 6,175
Amount of Deposit:
Minimum investment amount is Rs. 25,000/- (Rupees Twenty Five Thousand Only). The funds can be placed in multiples of Rs. 5,000/- as per customer’s needs. Profit Payment:
Profit will be paid on Quarterly or Half yearly basis as per customer decision at the time of booking the deposit. Profit will be credited directly to your PLS Savings / Current account and can be withdrawn by HMB Access ATM/Debit Card or Cheque book. Maturity:
Upon maturity, principal plus profit payable will be credited to your link account unless rollover instructions are given at least 3 (Three) working days before maturity. Zakat, Withholding Tax & Other Levies:
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All payments will be subject to Zakat (as per rules), withholding tax and other government levies as applicable from time to time. Easy Loan Facility:
The loaning facility offered is essentially of temporary nature and the account holder(s) can obtain the loan up to 80% of the amount placed in the scheme. Premature Encashment:
A premature encashment fee will be levied for premature withdrawal of funds from the scheme. The rate of the fee will be 2% of the deposit amount or the amount of profit already paid until the t he date of premature withdrawal, whichever is lower. The net amount after deduction will be credited in the customer’s
account.
Basic Banking Account
Account Opening with Rs. 1,000/No minimum balance required. Non-remunerative account. First cheque book of 25 leaves issued free of charge. charge. Additional cheque book(s) at Rs. 100/- per book. No limit on number of ATM / Deposit transactions.
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Two cheque transactions will be be allowed free per calendar calendar month. Charge of Rs. 25/- per cheque will be applied from the third cheque onwards. Free Services ATM / Debit Card Web Info & Tele info Yearly statement of account Online Funds Transfer
HMB Access (ATM / Debit Card)
HMB Debit Cards are FREE, and available to our valued valued clients at all all HMB branches. Page | 29
Make transactions up to the credit balance balance available in your account Withdraw cash through convenient POS terminals at all HMB branches Debit card Merchant list Karachi Lahore Islamabad Guidelines Card Holders Guideline Download Forms Download E-Banking Form MNET ATM Claim Form
Habib Auto Financing
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HMB Auto Finance is available available up to Rs. 3 Million. Minimum Down Payment is 15% of the total amount. amount. Processing Fee is Rs. 4,000/-. Vehicle to be be registered in the name of customer and marked HPA with the Bank.
Habib Auto Leasing
HMB Auto Leasing Leasing is offered to all our Commercial & Corporate Clients. Clients. Minimum down Payment is as low as 10% of the total amount. Auto lease limit depends on the strength of the Company’s financials and credit checks. A Processing fee is charged at 0.5% of the Lease amount. The Vehicle is to be registered in the name of the Bank The Insurance cost to be borne by the customer.
HMB Call Account
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Placements can be made in multiples of Rs 100,000. Account can be linked to any of of the regular regular accounts. A profit earning account. Funds can be placed overnight Funds can be transferred to and from the account overnight overnight for placements. Free Services Cheque Book(s) Statement of Account HMB ATM / Debit Card Stop payment of Cheques Pay Order Web info & Tele info Services Services
HMB Current Account Page | 32
The minimum amount required to open the account is Rs 5,000/Minimum balance to maintain in the account is Rs 1,000/This is a checking account with no no limit on the number of transactions No profit is paid in this account There are no no deduction of Zakat or any levies on this account. Free Services Cheque Book(s) Statement of Account Debit Card HMB ATM / Debit Web info & Tele info Services Services Pay Order
8: HMB Education Loans
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Financing for Education Loans are are available for Graduation Post-Graduation PHD Diploma courses Financing for Tuition fee, Books and materials. A Mark –up is charged at concessional rate. There is No No processing fee. Convenient repayment options options are are offered. offered. The Tenor is from 6 to 60 months.
9: HMB Izafa Certificates
Izafa Certificates are are issued in multiple(s) of Rs. 10,000/-, Rs. 25,000/-, 25,000/-, Rs.100,000/-, Rs. 250,000/-, Rs. 1,000,000/- and Rs. 2,500,000/-. HMB Izafa certificates are offered as 7 years Deposits Certificate. Offering attractive Profit rates up to 14.29 % p.a Investment doubles in Seven Seven years. years. Easy Loan Facility. Cashable any time. No Penalties. Your profits grow daily. Can be linked to any of the regular accounts.
10: HMB Multiplier Account
The minimum amount amount required to open and maintain maintain the account is Rs. 1 Million. Profit is accrued on a DAILY product product basis and credited to your account account monthly. Accrual of Profit Profit is on balance balance of Rs. 1 Million Million and above. Profit Rates In case balance of Rs. 1 Million not maintained for any day profit will will be paid @ 5.00% p.a. for the month. Free Services: Cheque Book(s) Statement of Account Debit Card HMB ATM / Debit Stop payment of Cheques Page | 34
Pay Order Web info & Tele info Services Services
11: HMB Mahana Scheme
1,3 & 5 year Deposit Schemes in multiples of Rs. 25,000/- & Rs. 100,000/Easy loan facility. En cashable any time. Monthly Profit credited to your account automatically.
12: HMB Personal Loans
Clean loans are offered up to Rs. 500,000/- . A Processing Fee of 1% of the loan amount or Rs. 2,000/- is charged, whichever is higher .
13: HMB Saving Plus Account
Eligibility : Individuals Only Initial Deposit : Rs. 25,000/Indicative profit rates Profit payment basis : Minimum balance during a month Profit payment frequency : Quarterly Quarterly Basis
+ Free Services Cheque Book Payment Orders Statements of Account ATM / Debit Card Web Info & Tele info Online Funds Transfer
14: PLS Saving Account (Free Life Insurance)
The minimum amount amount to open and and maintain this account is Rs. 1,000/-. The minimum amount to maintain maintain this account is Rs. 500/-. Free life Insurance cover.
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Free insurance is equal to the average six monthly balances in case of of death. The minimum qualifying average balance for Life Insurance is Rs. 15,000/-. The maximum sum assured is Rs. 1,000,000/Free Services Cheque Book(s) Statement of Account HMB ATM / Debit Card Web info & Tele info Services Pay Order
15: HMB Super Current Account
The minimum amount required for opening and maintaining this account is PRs. 100,000/This is a current account, which can be operated from any HMB branch branch nationwide. Cheques are acceptable at all all HMB branches across Pakistan. A non-remunerative account. No deduction of Zakat or any levies on this account. account. Free Services Cheque Book Payment Orders Statements of Account ATM / Debit Card Web Info & Tele info Online Funds Transfer Rent Free Lockers
16: HMB MACRO Prepaid Cards HMB and Macro Co-branded Prepaid Cards: Convenient, Secure and Effective. HMB and Macro-Habib Pakistan have together launched a prepaid card program. As you are already aware, Macro is one of the leading international chains of wholesale stores in the world; in Pakistan, they have entered into a joint venture with the House of Habib to establish and run macro stores. This card program carries two exciting products namely the Gift
Page | 36
Card and the Shopping Card which can both be used exclusively to make purchases at all macro stores in Pakistan. The prepaid cards are issued free of cost and can be purchased from all al l Macro stores or any HMB Branch in Karachi and Lahore through cash or by debit to your HMB account by issuing a requisition letter signed by the designated account signatories. In Pakistan, Macro Stores are located at:
Manghopir Road, Karachi Lines Area, Karachi Stargate, Karachi Ravi Road, Lahore Model Town, Lahore.
Salient features Prepaid Gift card:
The Gift card has a fixed value value of PRs 1,000 and is a disposable card. Available at all Macro Macro stores; stores; For purchases over PRs 10,000, please visit nearest HMB branch in Karachi & Lahore. Provides well-structured, hassle-free solutions to your home or business for extending benefits to your employees. These benefits may be part of their monthly monthly wages, payrolls or periodic bonuses. Gift card is most ideal to channel channel your social contributions contributions to the underprivileged by eliminating the risk of any misuse.
Prepaid Shopping card:
The Shopping Card carries value of Rs 10,000 which which can go up to Rs 250,000 in multiples of Rs 5,000. This is a multiple-use, multiple-use, reload able card. card. Carries great benefit benefit for your family or business to make make daily/periodic purchases with no risk of cash losses or misuse. Check your shopping shopping card balance & latest transactions by calling toll free at our Bank’s 24/7
Call Centre 0800-Habib (42242). If the card is lost, the same may be blocked and re-issued through our Call Centre.
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Jubilee Life Insurance
About jubilee life Profile: • Incorporated in Pakistan on 29th June 1995 as a public limited company (according to company’s ordinance 1984). • Jubilee Life (formerly: New Jubilee Life Insurance) started its
operations on 20th June 1996. Life is is engaged in both both individual individual life life & corporate insurance • Jubilee Life business. • On 17th October 2011, Jubilee Life Insurance was rebranded
• JLI has been able to make over 200,000 individual customers and over 1,000 corporate customers covering nearly 2,000,000 lives in total
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Cash Management Services Page | 42
This Service is best suited for Corporate Corporate clients with Rs.500 Million and above in local Sales and collections. Service involves Bulk Bulk collection of cash and cheques from all over Pakistan where HMB branches are available. Funds are collected and credited to customer’s accounts
(cash/transfer) the same day through Online Banking supported by the state of the art hPLUS technology. Customers benefit with outright savings of time & money. Product is very very competitively priced. Up to date tracking of funds with online reports available through web info and teleinfo services.
E-Salary
Page | 43
Through this service Salary disbursement to the employees of our valued corporate customers is done electronically. of all salary accounts are managed The Opening and maintenance of form a central location. ac counts. There are no charges on minimum balance in salary accounts. The individual Salary accounts are also eligible to apply for HMB Personal & Auto Loans. All banking services that include Electronic fund transfer (EFT), Demand Draft (DD), Telegraphic Transfer (TT) are available to eSalary account holders. The Minimum monthly salary disbursement per corporate customer is Rs. 1 Million. 5,000/-. Charges per salary Rs. 50/- or minimum of Rs. 5,000/-. Free ATM / Debit Cards will be issued to all e-salary customers at the time of opening accounts. balance inquiry and other Free Web/Tele info services to facilitate balance services 24/7
24 Hours Call Centre
Page | 44
0800 – HABIB (42242) 24 hours card card blocking of HMB access (ATM /Debit Card) in case of loss or theft. Location of branch addresses, telephone numbers, fax and ATM points. Various departments departments in the Head Office with contact details Tele info and Web info Services, Deposit Products Products and Rates offered offered on various tenors and types of accounts. Products and Services e.g. General General Banking, Consumer Finance, Schedule of Charges etc.
HMB GSM Mobile Banking
Page | 45
We are pleased to introduce HMB mobile banking facility, facilit y, which would be available on request to all our existing and new account holders. Account holders who subscribe to this facility would receive SMS messages on their designated mobile phones for all types t ypes of transactions that they had requested. Following inquiries can be requested by the customers for their accounts.
Balance Inquiries
1. 2. 3. 4. 5. 6. 7.
Daily Balance All Debit Balances Debit Balance Over Over Amount Debit Balance Below Below Amount Credit Balance Only Credit Balance Over Over Amount Credit Balance Below Below Amount
Transaction Inquiries
1. 2. 3. 4. 5. 6.
All Transactions All Debit Transactions Debit Transactions Over Amount Amount Debit Transactions Below Amount All Credit Transactions Credit Transactions Over Amount Page | 46
Credit Transactions Below Amount Other Inquiries 1. Inward Remittances 2. Other Bank’s Cheque Cleared 3. Other Bank’s Cheque Returned 4. Your Cheque Cleared 5. You’re Cheque Returned 6. PAD Logged ( Amount refers to any amount specified by the account holder) 7.
HMB Rent Free Lockers
Page | 47
Secure Rent Free Lockers Refundable security deposit Available in, Size
Security Deposit
Small
Rs. 20,000
Medium
Rs. 35,000
Large
Rs. 60,000
Extra Large
Rs. 100,000
HMB Tele Info Service
Dial 0800 HABIB HABIB / 0800 42242 42242 Instant access to the information you you need at any time, from anywhere. Tele info is a 24 hour telephone banking service to give you information you need – easily, instantly. Following services can be accessed 24/7 Account Balance Cheques in Clearing. Page | 48
Indicative Foreign Exchange Rates. Faxed back account statements.
HMB Web Info Service
Online Banking. Access your account from from your home or office or anywhere anywhere in the world. world. Login through web info username and password. Login through your HMB ACCESS (ATM/Debit Card).
Following services can be accessed 24/7 Up-to-date Account Balance. Cheques in Clearing. Account statement. Indicative Foreign Exchange Rates.
POS (Point of Sale) Machine
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Now you can withdraw cash from all HMB branches cash counters easily and without any delay. Each HMB branch branch is now equipped equipped with a POS POS machine available available on their Cash Counters. No need to issue cash cheques and no need to wait. Cash can be withdrawn up to Rs. 250,000/- via HMB ACCESS (ATM / Debit card).
Short Term and Long Term Finance The bank also offers short term t erm working capital financing including under sharia compliant modes, exports/import financing and long-term finances to Corporate/Commercial customers as well as SMEs trade & industry. It also extends Agricultural credit; specialized fi nancing tailored to customer’s needs and is also a regular member of Syndicated S yndicated financing club
SPECIAL SERVICES House of Habib Flood Efforts HOH has donated Rs. 10 million to t o the Prime Minister’s Relief Fund for f or the
flood affecters. In addition, 2000 Swedish water purifiers (Life Straw) costing Rs. 2,500/- each were distributed for ensuring potable water to the affecters apart from 2500 sachets of water purifiers. The cost of both these items aggregated to Rs. 5.1 million. Page | 50
In Muzaffargarh alone, approximately 900 families were registered registe red for aid. Issuance of ration cards and distribution commenced from the mills of HOH. For tankers of drinking water is supplied daily to the relief camps set up by different agencies and NGOs. A medical camp was set up at Basti Nawan in collaboration between HOH, Team Rubican and PMA; about 1200 people were treated
SPECIAL SERVICES (Cont’d) In these camps. The two medical teams consisted of four doctors from Team Rubicon (an NGO of USA) and three female, fema le, three female doctors along with 3 paramedics from Pakistan Medical Association. The documentary by CNN on flood and relief work was aired on 8th and 9th September, 2010 from 4- 7 p.m. (PST) showing the medical camps that t hat were set up in collaboration coll aboration with HOH. House of Habib Flood Efforts
In Sindh the relief operations have been undertaken in Hyderabad, thatta/ keti Bandar and karampur, a town near sukkur. Food ratios for 350 families and medication for 750 people were sent to karampur. In Hyderabad (Habib Farm vicinity) a clinic was established on 1st September 2010, and medical treatment is being continuously provided to the flood affecters through it. Food family packs have been distributed to 450 affected families which would sustain them for two weeks. Registration of affected families has been done for rehabilitations stage/ efforts. In Punjab 10, 000liters of drinking water is i s being supplied daily to relief camps set up different agencies and NGOs. 343 family food packs were distributed just before Eid-ul-Fitr. Post Eid phase of relief efforts started from 15th September 2010, with a medical cam being set up with the help of an NGO (HOPE) in Muzaffargarh. Water purifiers were also distributed to t o the affected people of the area. For the flood affected, the House of Habib has so far served 19, 427 hot meals, distributed family food packs to 32, 268 people, provided 670, 000 litters of drinking water apart from medical assistance to 21,879 people. So far it has collected Rs. 103 million for this noble cause out of which has already been utilized. This outstanding performance can only be lauded.
Page | 51
Year over year, Habib Metropolitan Bank Limited has seen s een their bottom line shrink from 3.3B to 2.7B despite an increase in revenues from 3.0B to 3.2B. An increase in the percentage of sales devoted to SGA costs from 98.56% to 106.93% was a key component in the falling bottom line in the face of rising revenues.
Currency in Millions of Pakistan Rupees
TOTAL REVENUES
As of : Dec 31 2006
Dec 31 2007
Dec 31 2008
Dec 31 2009
Restated PKR
Restated PKR
Restated PKR
PKR
4,495.5
6,458.9
8,016.6
7,883.7
Cost of Goods Sold
109.7
69.3
113.4
116.9
GROSS PROFIT
4,385.8
6,389.6
7,903.2
7,766.8
Selling General & Admin Expenses, Total
1,240.2
2,184.8
2,989.1
3,431.0
EBT, EXCLUDING UNUSUAL ITEMS
3,144.4
4,204.4
4,767.0
4,229.4
--
--
--
-2.7
3,144.4
4,204.4
4,767.0
4,226.7
Income Tax Expense
1,047.2
1,407.0
1,471.9
1,480.2
Earnings from Continuing Operations
2,097.2
2,797.4
3,295.1
2,746.6
2,097.2
2,797.4
3,295.1
2,746.6
NET INCOME TO COMMON INCLUDING EXTRA ITEMS
2,097.2
2,797.4
3,295.1
2,746.6
NET INCOME TO COMMON EXCLUDING EXTRA ITEMS
2,097.2
2,797.4
3,295.1
2,746.6
Merger & Restructuring Restructuring Charges
EBT, INCLUDING UNUSUAL ITEMS
NET INCOME
Page | 52
Another table of financials For the Year
Dec '09
Dec '08
Dec '07
Dec '05
Dec '06
Dec '04
(Rupees in million)
Shareholders Equity
18,889
16,150
13,359
10,665
5,093
3,588
7,528
6,022
5,018
3,005
1,560
1,200
Total Assets
237,412
182,711
172,867
148,668
79,564
67,891
Deposits
142,457
128,433
121,141
102,493
56,713
48,596
Advances
102,293
108,261
89,827
83,324
43,519
40,122
Investments
111,680
53,632
61,736
39,556
22,804
15,560
Profit before Tax
4,214
4,764
4,045
3,143
2,098
1,411
Profit after Tax
2,739
3,293
2,964
2,096
1,506
835
3.64
5.47
5.37
9.32
9.65
6.95
67 (B)-I* 20 (B)-F* 10 (C)-F*
-
33.33 (B)
30 (B)
Paid-up Capital
Earnings Per Share
Dividends (%)
16 (B) 10 (C)
25 (B)
No. of Staff
2,695
2,473
2,300
1,963
1,143
1,045
120
110
100
82
51
47
No. of Branches
‘I ‘= interim and ‘F’= financials
Page | 53
Over 150+ branches in 21 cities of Pakistan Over 110+ online branches 101+ ATM machines are operated in the country Page | 54
HMB operates in more than 20 countries across the world.
Phone Banking
Dial 0800 HABIB HABIB / 0800 42242 42242 Instant access to the information you you need at any time, from anywhere. Tele info is a 24 hour telephone banking service to give you information you need – easily, instantly. Following services can be accessed 24/7 Account Balance. Cheques in Clearing. Indicative Foreign Exchange Rates. Faxed back account statements.
Internet Banking (Online Banking)
Access your account from from your home or office or anywhere anywhere in the world. Login through web info username and password. Login through your HMB ACCESS (ATM/Debit Card). Following services can be accessed 24/7 Up-to-date Account Balance. Cheques in Clearing. Account statement Indicative Foreign Exchange Rates.
International Banking: 1: Correspondent Bank Network Habib Metropolitan Bank Limited HEAD- OFFICE INTERNATIONL DIVISION COUNTRYWISE LIST OF BANKS TO BE USED FOR IMPORT LC ADVISING
Page | 55
COUNTRY
BANK
AFGHANISTAN
COUNTRY
BANK
CZECH. REP
.
STANDARD CHARTERED BANK
COMMERZBANK AG HSBC BANK PLC
ARGENTINA
BBVA ‐ BANCO FRANCES
DENMARK
DANSKE BANK A/S D AUSTRALIA
EGYPT
HSBC BANK AUSTRALIA LIMITED JPMORGAN CHASE
BNP PARIBAS LE CAIRE (FORMERLY BANQUE DU CAIRE ET DE PARIS) ESTONIA
NORDEA BANK FINLAND PLC ESTONIA BRANCH
AUSTRIA
UNICREDIT BANK AUSTRIA AG
ETHIOPIA
FINLAND
CITIBANK INTERNATIONAL PLC, FINLAND BRANCH
BAHRAIN
UNITED BANK LTD NORDEA BANK FINLAND PLC BANGLAD
ESH
FRANCE
BNP‐PARIBAS SA (FORMERLY BANQUE NATIONALE DE PARIS S.A.)
BANK ASIA LIMITED
HSBC HSBC FRANCE SHAHJALAL
(FORMERLY
ISLAMI
HSBC CCF) HSBC CCF) COMMERZBA
BELGIUM
F O R T I S
NK AG GERMANY
COMMERZBANK AG STANDARD CHARTERED BANK DZ BANK AG DEUTSCHE ZENTRAL GENOSSENSCHAFTSBANK HSBC TRINKAUS UND BURKHARDT UND BURKHARDT AG
BRAZIL
CITIBANK NA BULGARIA
UNICREDIT BANK
CITIBANK NA CANADA
AG GREECE
HABIB CANADIAN BANK
CITIBANK INTERNATIONAL PLC ‐ GREEK BRANCH BNP PARIBAS GRECE UNICREDIT BANK AG (HYPOVEREINSBANK)
CHILE
Page | 56
BANCO SANTANDER
ATHENS ALPHA BANK AE
BANCO DEL DESARROLLO
G
CHINA
HONG KO
CITIBANK (CHINA) CO., LTD.
HBZ FINANCE LIMITED
HSBC BANK (CHINA)
C
COMPANY LIMITED COMPANY LIMITED BANK OF CHINA LTD
I T I
STANDARD CHARTERED BANK (CHINA) LIMITED JPMORGAN CHASE
B A UNICREDIT SPA‐HONG KONG BRANCH
CROATIA
ZAGREBACKA BANKA DD
STANDARD CHARTERED BANK (HONG KONG) LIMITED
KUWAIT
SWITZERLAND
CITIBANK NA
HABIB BANK AG ZURICH B
KYRGYZSTAN
N
NATIONAL BANK OF PAKISTAN BISHKEK
P
QATAR
DOHA BANK
TAIWAN
CITIBANK TAIWAN LIMITED STANDARD ROMANI
CHARTERED
JPM ORG AN CHAS E
ING BANK N.V., BUCHAREST BRANCH RUSSIA
CITIBANK, MOSCOW TANZANIA
SAUDI ARABIA
STANDARD CHARTERED BANK TANZANIA LTD
JPMORGAN CHASE BANK THAILAND
BANQUE SAUDI FRANSI
CITIBANK NA
BANK
HSBC
AL‐JAZIRA
TUNIS
SINGAPORE
CITIBANK NA
CITIBANK NA TURKEY
Page | 57
Foreign Remittances
Global remittance remittance facility available through our extensive correspondent bank network. Need assistance for remittance of funds to Pakistan Please select one of the following formatted letters for presentation presentation to your bankers
Page | 58
For Remittances in GPB
TO, The Manager ____________________ ____________________ ____________________
Dear Sir, Please debit my Account No. __________________With you, and remit a sum of GBP_____PoundSterling_________________________ GBP_____PoundSterling_ _________________________________________ _________________ ____________________________________________ ______________________ ________________________________________ __________________ __________________ To Habib Bank AG Zurich Habib House 42 Moorgate London EC2R 6JJ UK For credit to A/C No: 7-1-1-20110-402-19601 SWIFT: MPBLPKKA Habib Metropolitan Bank Limited I.I. Chundrigar Road Karachi For further credit to Branch Name: _________ Account No: ____________ Account Name: ____________ Yours faithfully Page | 59
For Remittances in USD Date: _________________
FOR USD
The Manager ________________ ________________ ________________ Dear Sir, Please debit my Account No._____________with you, and remit a sum of US$__________________________US US$___________________ _______US Dollars__________________ Dollars________________________ ______ ______________________________________________________________ ____________________________________________ __________________ ______ To Habib American Bank 99. Madison Avenue New York- U.S.A. For credit to A/C No: 2072-9532 SWIFT: MPBLPKKA Habib Metropolitan Bank Limited I.I. Chundrigar Road Karachi For further credit to Branch Name: ____________ Account No: ______________ Account Name: _____________ Page | 60
Yours faithfully
For Remittances in Euro Date: ___________
FOR EURO
The Manager __________________ __________________ __________________ Dear Sir, Please debit my Account No. _______________with you, and remit a sum of EURO____________________EURO________________________________ ____________________________________________ ____________________ __________________________________________ __________________ _______________ To Commerz bank A.G Kaiserplatz, Frankfurt, Germany. For credit to A/C No: 50040000/400880742200 SWIFT: MPBLPKKA Habib Metropolitan Bank Limited I.I. Chundrigar Road Karachi For further credit to Branch Name: ________________
Page | 61
Account No: __________________ Account Name: ________________ Yours faithfully
PAY TO:
US DOLLARS
1. Habib American Bank
Alc # 2072-9532
99, Madison Avenue
Routing No.ABA026007362
New York- U.S.A.
Swift Code: HANYUS33
New York 10016
2. Citibank N.A
A/c # 36082351
New York- U.S.A.
Swift Code: CITIUS33
3. Standard Chartered Bank
A/c # 3582073088001
New York- U.S.A. Swift Code:SCBLUS33
Page | 62
POUND STERLING PAY TO: 1. Commerzbank AG Kaiserplatz
Alc # 50040000/400880742200
Frankfurt – Germany Swift Code: COBADEFF
For credit to Account of (Beneficiary’s Bank)
Habib Metropolitan Bank Ltd. Main Branch Karachi- Pakistan
Beneficiary Customer
Swift Code: MPBLPKKA001 Customer A/c#_________ Name:________________
Page | 63
Habib Metropolitan Bank -Islamic Banking Division
Mission Our mission is to provide full range of Sharia’ah compliant products and services to our customers with no compromise on Sharia’ah rulings Introduction to Islamic Banking Division
Habib Metropolitan Bank has developed sufficient expertise, necessary n ecessary infrastructure, information technology, and manpower to run Islamic Is lamic banking operation. Banking customers who wish to avail Islamic Isl amic banking products and services are welcome to contact us to accomplish their banking requirements. Our Islamic Banking Division is headed by an experienced banker who is responsible for the over all operational activities of the Islamic Banking Division. The Division has the advisory services of reputable Shari’ah advisors
who also help in developing Islamic Banking Products.
Page | 64
Islamic Banking Products Deposits Products
Islamic Current Deposits Account Islamic PLS Account Islamic Investment Certificates Historical Profit Rates Local Currency Foreign Currency Current Weight ages Local Currency Foreign Currency
Financing Products:
Local murabahah murabahah for financing financing raw material for locally manufactured goods and local murabahah for financing finished goods for local lo cal traders. Local & import import murabaha for financing raw material and finished goods for importers and exporters for trade finance. Ijara (Islamic lease) for financing equipment’s and machinery consumer and commercial vehicles. Ijara (Islamic lease) financing for consumer and and commercial vehicles. Commercial property property financing on diminishing musharakah basis. House financing on diminishing musharakah basis. basis.
Islamic Banking Branches Branch
Address
Telephone
Fax
Page | 65
Al-Falah Court Branch
Zaibunnisa Street Branch
Rashid Minhas Rd. Branch
Ground Floor, Alfalah Court, I. I. Chundrigar Road, Karachi
SB-4/4, Zaibunnisa Zaibunnisa Street, Saddar, Karachi
F-L, 3/15, Block 5, Gulshan-e-Iqbal, Karachi
(021)2215361-63
(021)2215358
(021)5650711-4
(021)5650650
(021)4819985-86, 88
(021)4819989
Shariah Adviser
We have a prominent Islamic scholar as our Shariah Adviser who is a specialist in Islamic Fiqh and is qualified from renowned Islamic Academia. He is a Research Scholar affiliated with SBP and ICAP.and a member of various committees formed for promoting the cause of Islamic Banking in Pakistan and abroad.
Rates and Charges: Deposit Rates Indicative Profit Rates payable on PLS Deposits Schemes effective from July, 21 2010. Type of Deposit
Rates per annum
PLS Savings Accounts SNTD
Term/Fixed Deposits
5.00% p.a.
7 days
5.00% p.a.
30 days & over
5.00% p.a.
1 month
6.00% p.a.
3 months
7.50% p.a.
6 months
8.25% p.a.
1 year
9.50% p.a.
2 years
10.00% p.a.
3 years
11.00% p.a.
Page | 66
HMB Savings Plus Accounts Up to Rs.100,000/Over Rs.100,000/- up to Rs.1 Million Over Rs.1 Million HMB Multiplier Accounts Up to Rs.1 Million Over Rs.1Million HMB Izafa Certificate (With effect from December 1, 2010)
HMB Mahana Scheme (With effect from December 1, 2010)
4 years
11.25% p.a.
5 years
11.50% p.a.
Individuals only
5.00% p.a. 8.00% p.a. 5.00% p.a.
-
5.00% p.a. 8.00% p.a.
for 6 years
16.67% p.a.
(i)For 1 year - min. placement Rs. 25,000 11.70%
Rs. 244 p.m.
(ii)For 3 years - min. placement Rs. 50,000 12.12%
Rs. 505 p.m.
(iii)For 5 years - min. placement Rs. 100,000 12.24%
Rs. 1,020 p.m.
TERMS OF USE
In the case of term term deposits not en-cashed on maturity, principal amount will automatically be renewed for the same period for which the Deposit was originally placed. On premature withdrawal withdrawal of Term Deposits, the profit will be paid as per the rate applicable for period deposit held. All above Indicative Indicative Profit Rates are subject to Government of Pakistan Levies as applicable from time to time. In all above products Zakat / Govt. levies will be applicable as per rules. In case balance of Rs. 1 Million not maintained for any day profit will will be paid @ 5.00% p.a. for the month.
Exchange Rates RATES FOR PUBLIC PER UNIT OF CURRENCY COUNTRY
SELLINGTT & OD BUYINGTT CLEAN BUYING O/DT/CHEQUES
Page | 67
U.S.A.
85.8500
85.6500
85.4810
133.3680
133.0144
132.7438
84.6981
84.4758
84.3280
84.7597
84.7421
84.4143
1.022754
1.019764
1.017980
DENMARK
15.2038
15.1604
15.1338
SAUDIARABIA
22.8927
22.8382
22.7982
SWITZERLAND
88.5508
88.2899
88.1354
U.A.E.
23.3739
23.3182
23.2774
HONGKONG
11.0384
11.0117
10.9924
SINGAPORE
65.3597
65.1579
65.0438
SWEDEN
12.5651
12.4962
12.4743
2.8484
2.8380
2.8330
113.2190
112.9038
112.6821
U.K. CANADA AUSTRALIA JAPAN
THAILAND EURO
BILL BUYING RATES PER UNIT OF CURRENCY UNDER L/C PERIOD
U.S.A
U.K
AUSTRALIA
EURO
CANADA
30 DAYS
85.2276 132.3291
83.8993 112.3509
83.9182
60 DAYS
84.7630 131.5759
83.1156 111.7185
83.3968
90 DAYS
84.3406 130.8899
82.3346 111.1424
82.8723
120 DAYS
83.9182 130.1990
81.5794 110.5680
82.3763
150 DAYS
83.4958 129.5149
80.7734 109.9928
81.8333
180 DAYS
83.0735 128.7938
79.9538 109.4227
81.2781
Page | 68
OFFICIAL BUYING RATES FORWITHDRAWL FROM OLD F.C.A/C. PERIOD
U.S.A
U.S.A.
85.7950
U.K.
134.6724
JAPAN
1.020600
EURO
114.0902
RATE FOR CURRENCY NOTES PERIOD
U.S.A
U.K
U.S.A.
85.2218
86.2793
U.K.
132.3494 134.0348
JAPAN
1.014665 1.027868
EURO
112.3393 113.7851
LIBOR FOR CALCULATING INTEREST ON SPECIAL US DOLLAR BONDS null
null
LIBOR
6 MONTHS US DOLLAR
0.4578
20.12.2010
Page | 69
KIBOR RATES One Week 12.54
Two Weeks
One Month
12.77
Three Months
13.11
13.41
Six Months 13.61
Nine Months
Twelve Months
13.95
14.11
Two Years 14.21
Three Years 14.32
Corporate Information Snap Short:
Habib Metropolitan Bank Limited Company Snapshot
Business Description: Habib Metropolitan Bank Ltd. is a financial fi nancial company engaged in commercial banking and brokerage services. Its products and services s ervices include HMB Access, HMB Auto Finance, HMB Auto Leasing, HMB Basic Account, HMB Call Account, HMB Current Account, HMB Education Loan, HMB Izafa Certificate, HMB Multiplier Account, HMB Mahana Scheme, HMB Personal Loan, HMB Savings Plus Account and PLS Savings Account with Free Life Insurance. The Bank operates 120 branches, including four Islamic banking branches in Pakistan. The Bank is a subsidiary of Habib Bank AG Zurich. The Bank's subsidiary, Habib Metropolitan Financial Services Limited, is engage d in equity brokerage services. Wright Quality Rating DLC1 :
Page | 70
At year-end, HMB s equity stands at Rs 18.9 billion at a comfortable 11.9% capital adequacy level against the required 10%. Stock Data:
Current Price (12/10/2010):
Recent Stock Performance:
25.65
1 Week
4 Weeks
2.1%
13 Weeks
22.4%
35.0%
52 Weeks
-1.5%
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Habib Metropolitan Bank Limited Key Data: Ticker: HMB Country: Pakistan Exchanges: KAR Major Industry: Financial Sub Industry: Commercial Banks 2009 Sales
25,082,193,000 (Year Ending Jan 2010).
Employees: 1,659 Currency:
Pakistan Rupees
Market Cap: 22,397,400,450 Fiscal Yr Ends: December Shares Outstanding: 873,193,000 Share Type: Ordinary Closely Held Shares: 595,085,145
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SWOT ANALYSIS STRENGTHS:
Large capital base. Rank in top 10 bank of Pakistan. Continuous growth in ROE.
The bank’s management realizes the necessity of existence of effective
internal controls to ensure smooth operations in the t he current technical and swift business environment. Loyal management. The bank has efficient and experienced management management making significant. Credit rating in long-term “AA+” and in the short term “A1+”. The financial statements, prepared by the management management of the bank present fairly the state of affairs. Loans are given only to known, reputable clients to avoid chances of fraud. Very low nonperforming loan. Effectively handled handled the current economic recession. recession. Bank is continuously focusing on developing new and innovative products to attract their target market. Strong customer relationship. Asset utilization is is very good.
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WEAKNESSES:
Only valued client is important. important. Bad portfolio portfolio diversification (54% advances to Textile industry) Advertisement on on electronic media has not been seen. Declining standards of banking after merger. Inter- organizational conflicts after merger. upon polices to keep customers happy. Compromises upon Old Management. (No creativity) branches. No further growth in branches. Majority of shares are owned by the one family. Low consumer finance. Less job satisfaction of employees. Customers facing problem of NADRA verification while opening their accounts because its process is time consuming. Promoting generally on seniority basis. Attitude of senior manager at head office has to change towards junior staff.
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OPPORTUNITIES:
Scope in Islamic Banking. To go global fully Low exposure to consumer banking providing providing opportunity to explore the segment. The year 2010 2010 will prove to be another demanding year for for the bank with scattered. Diversification, innovation and mission mis sion driven approach are the key to success which bank should adopt. Progressive but cautious business expansion expansion with strategic branch network extension and introduction of innovative products in all areas of business. Branch network need extension. Should emphasize emphasize much on e-banking. Profit margin will be good. The bank being Swiss incorporated, it bank follows dual dual banking regulation i.e of Pakistan as well as Switzer-land which attracts foreign investors. SBP policy policy to allow Islamic Banking business separately. Bank introduces Islamic banking in country that attracts large number number of people. Greater profitability profitability can be achieved through strong internal control. New schemes for deposits and finances should be introduced regularly. regularly. Opportunity to open open branch in ruler area to increase its branch branch network and gain more profit.
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THREATS:
Adverse impact of “Credit Crisis” can badly effect on HMB.
Facing a strong competition by its competitors. High reliability on only one market segment i.e. Textile. (54%) Inconsistency in government policies. Increasing competition in the banking sector. Entry Entry of many foreign banks. Strict policies of the State Bank of Pakistan. Geopolitical condition of country. Global liquidity liquidity crisis has constrained banks to stop lending. Current economic crunch. Political instability. Rising deposit rates. Foreign banks banks in market having more marketing budgets. People losing trust in banks. Decline in private private and public sector sector credit due to tight monetary policy.
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PEST ANALYSIS
Political: Political instability can lead to changes in laws and policies which can be in favor or against the banking sector Monopolies Legislation Taxation Policy Foreign Trade Regulations
Economic Economy of Pakistan is facing issues about Unemployment, Inflation, Illiteracy, Corruption Business Cycles Interest Rate
all the above issues hinders business growth.
Socio Cultural issues Cultural issues can be there but still as there are a number of multinational companies there, therefore, culture issues are not prominent. Population Demographics Income Distribution Social Mobility Lifestyle Changes Levels of Educations
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Technological Speed of of Technology Transfer New Discoveries Discoveries / Development Investment on Research Rate of Obsolescence
RISK MANAGEMENT Credit risk: The HMB strategy is to minimize credit risk through a strong pre-disbursement credit analysis, approval and risk measurement process added with product, geography and customer diversification. The Bank, as its strategic preference, provides loans only to strong parties. Major portion of the Bank credit portfolio is Textile industry (54%) which is highly profitable business in Pakistan but it may riskier and not a good diversification of portfolio, if textile industry slump then it will crash the whole bank. The bank has very low rate of Nonperforming loans. The ratios of risks are as under and we can see that they reduce the risk as per their objective.
Market Risk: Market risk is the possibility that fluctuation in interest rates, foreign exchange or stock prices will change the market value of financial products leading to a loss. The HMB has formalized liquidity and an d market risk management policies which contain action plans to strengthen the market risk management system.
Foreign Exchange Risk: Foreign Exchange Risk is the probability of loss resulting from adverse movement is exchange rates. The HMB is not in the business of actively trading and market making activities but a conservative risk approach and the Bank’s business strategy to work with export oriented (Textile) client’s gives
the ability to meet its foreign exchange needs.
Interest rate risk: Interest rate risk is the risk that the value of the financial instrument will fluctuate due to changes in the market interest rates. The HMB’s interest rate
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transactions. Interest rate risk is also controlled through flexible credit pricing mechanism and variable deposit rates.
Liquidity risk: HMB manages the liquidity position on a continuous basis. The Bank’s liquidity position is based on “self-reliance” with a wide branch network to expand the Bank deposit base. The Bank’s liquidity profile generally consists of short-term, secured assets, in line with the Bank’s credit strategy.
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RECOMMENDATIONS
Diversify the portfolio
Introduction of new products/services in the market
Hire new management
Give importance to all customers
Increase the branches all over the country
Improve standard of banking
Start advertisement as soon as possible
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Conclusion
Major factors like global financing disorder, economic slowdown and strict monetary policy were on the top but Pakistan bank caters all these problems. HMB is one of the top ten banks it is expected to play a major role in pioneering these newer markets.
Currently, the banking sector is facing facing two major problems. The first one is the decline in credit demand due to slowdown in the economic activities due to poor law and order situation, power crisis, inflationary pressure, and high interest rates. The other problem is the mounting amount of NPLs (non-performing loans). With the exception of a few banks all the banks are exhibiting considerable rise in NPLs. These two issues are collectively dampening the banking sector s performance.
HMB offers branch banking,e-banking,consumer banking,e-banking,consumer banking banking international banking and also offers Islamic banking to facilitate their customers
At year-end, HMB s equity stands at Rs 18.9 billion at a comfortable 11.9% capital adequacy level against the required 10%.
The credit ratings denote a very high high credit quality, a very low expectation of credit risk and a very strong capacity for timely payment of financial commitments.
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