HBL is ag­gres­sive to tap fu­tur­is­tic op­por­tu­ni­ties

The Pak Banker - - FRONT PAGE - Muham­mad Yasir

China and Pak­istan Eco­nomic Cor­ri­dor is a bright op­por­tu­nity not for the govern­ment but pub­lic sec­tor as well spe­cially for bank­ing in­dus­try which is look­ing for­ward to fi­nance mega projects to earn mar­gins at times when in­come of in­ter­est rates is chal­leng­ing due to soft mon­e­tary pol­icy, and Habib Bank Lim­ited is one of them. Ac­cord­ing to an an­a­lyst, Habib Bank Lim­ited is likely to en­joy higher credit growth with ini­ti­a­tion of China and Pak­istan Eco­nomic Cor­ri­dor projects, and it is es­ti­mated that HBL ad­vances will grow by 14% on av­er­age from 2016 to 2018 as it grew on av­er­age 9 per­cent in last 3-year. Fur­ther, the im­prov­ing busi­ness ac­tiv­i­ties and cli­mate of in­vest­ment may fur­ther help bank to pro­vide ad­vanced to pri­vate sec­tor, which though is in re­silient mode, but it is likely to pick up growth in up­com­ing years in big cities on the back of law and or­der sta­bil­ity and con­trolled in­fla­tion. The bank is ag­gres­sive in ex­pan­sion of Is­lamic Bank­ing and its busi­ness to of­fer var­i­ous so­lu­tions to its do­mes­tic and cor­po­rate clients. It is also ac­tive in branch­less bank­ing and re­mit­tances ser­vices de­spite com­pe­ti­tion. The bank also draws com­fort from im­pres­sive CAR ra­tio of 16% (min­i­mum re­quired: 10%, in­dus­try av­er­age: 16%), which is ex­pected to get fur­ther boost once un­se­cured TFC is is­sued.

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