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Habib Bank’s earnings up 13%

The Habib Bank Limited (HBL) announced the earnings for 2021 at Rs35 billion, depicting a surge of 13 per cent. The jump in the earnings on a yearly basis is primarily due to reduced provisioning charges, as last year saw elevated expenses, as part of building general coverage along with improved non-interest income.

According to the management, the bank will issue, for the first time, an environment, social and governance (ESG) report by the end of March 2022, highlighting the initiatives it has taken and the ones that are in the pipeline.

The HBL expects to close CY22 with an Islamic network of around 250 to 260 branches. This number is targeted to go beyond 300 next year.

Habib Bank, Pakistan’s largest bank, was the first commercial bank to be established in the country in 1947. Over the years, it has grown its branch network and maintained its position as the largest private sector bank in Pakistan with over 1,650+ branches and 2,100+ ATMs globally, serving 23 million+ customers worldwide.

The bank is a leading full-service commercial bank. The key areas of operation are branch banking, corporate and investment banking, treasury, SME and rural banking, financial institutions and global trade services, transaction banking and Islamic banking.

The branch banking business is the mainstay of HBL, positioning it as the largest retail bank in Pakistan, catering to all the market segments. HBL Corporate and Investment Banking Group is a leading provider of financial services to multinational and local corporate clients across the country.

The bank also has the largest treasury operations in the country and plays a key role in domestic markets.

HBL enjoys a significant international footprint and is the largest domestic multinational. The bank’s international footprint is important, as it provides opportunities to effectively serve its core customers across its network. China remains the lynchpin of HBL’s international strategy and the bank is the largest executor of China-Pakistan Economic Corridor (CPEC)-related financing in the country.

In November 2019, Habib Bank created history when its Urumqi branch formally commenced the RMB business by becoming the first and only bank from Pakistan and one of the three banks from the South Asia and MENA region to offer end-to-end RMB intermediation.

In December 2019, it became the first Pakistani bank to be awarded the much coveted branch licence to offer financial services to clients in Beijing.

Meezan Bank profits rise 26% to Rs28B

Meezan Bank Limited (MEBL) posted 2021 net profit of Rs28 billion, up 26 per cent YoY. The bank deposits increased 16 per cent in 2021, lower than the preceding years’ pace of 20 to 25 per cent.

However, the current account growth remained upbeat at 33 per cent, taking the share of zero-cost deposits to 45 per cent. The bank ranked up and became the fourth largest bank in Pakistan as at the end of 2021.

Fresh deposits were broadly parked in the loan book, where advances growth clocked-in at 48 per cent. During the same time, borrowings jumped 2.3x, where investments increased 42 per cent. Sukuks more than doubled, with most increase witnessed during the the fourth quarter of CY21.

The Adequacy Deposit Ratio (ADR) level may remain in the same vicinity in the coming years. The branch network target for 2022 is 50 new branches.

There has been no discussion on Minimum Deposit Rate (MDR) for Islamic banking sector with the central bank. There is no additional requirement on adequacy ratios expected by the State Bank of Pakistan (SBP) for MEBL, despite it being one of the domestic systemically important banks (DSIB).

The bank is well-covered for any impact by implementation of IFRS 9 with the general provisions at Rs5.9 billion. The recent increase in the borrowings was the result of Sukuk opportunity arising in the fourth quarter and will be retired over time.

Meezan Bank is the first Islamic bank in Pakistan and commenced operations in 2002 after being issued the first-ever Islamic commercial banking licence by the State Bank of Pakistan. It has a network of over 890 branches. The bank has a market share of 35 per cent in the Islamic banking industry of the country.

It provides a comprehensive range of Islamic banking products and services through a retail banking network of more than 900 branches in more than 250 cities of the country.

Backed by a state-of-the art T-24 core banking system, the branch network is supported by 24/7 banking services that include over 950 ATMs, VISA and MasterCard, a call centre, internet banking, mobile application and SMS banking facility.

The bank operates strictly under the principles of Islamic Shariah and is well-recognised for its product development capability, Islamic banking research and advisory services. To ensure strict Shariah-compliance in all its products and services, the bank has established a dedicated Product Development and Shariah Compliance Department that operates under the supervision of the bank’s in-house resident Shariah Board member and a Shariah Board comprising internationally renowned Shariah scholars.

Fauji Cement’s earnings per share surge 63%

Fauji Cement Company Limited (FCCL) announced earnings per share (EPS) of Rs1.07, up 63 per cent for the quarter ended December 31, 2021. The result was significantly above the market expectations.

Even though recent increase in coal prices can remain a drag on margins and profitability in the near-term, analysts maintain a positive stance on FCCL where a decline in coal prices is expected, going forward, which would be a major trigger, while the local demand and prices remain strong.

The plant of Fauji Cement Company Limited (FCCL) is located at Jhang Bahtar, Attock district near Islamabad. The company is one of the leading producers of a wide range of quality cement, including ordinary portland cement and other special cement(s) in Pakistan.

Incorporated as a public limited company, it started its operations in 1997 with the production capacity of 3,700 tonnes/day (TPD), which was enhanced to over 11,000 TPD, with the addition of second production line in 2011.