Habib Bank Limited · PSX:HBL
Habib Bank — Investor Presentation (February 2015)
31 slides from Habib Bank's investor presentation, February 2015
Slide 1: Additional Disclosures for Analysts February 2015
Additional Disclosures for Analysts February 2015
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Habib Bank Limited (the “Bank”) solely for information purposes. No representation or warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or any opinio
Slide 3: Contents
Contents 1 Introduction p. 3 2 Highlights p. 8 3 Financial performance p. 20 4 Additional information p. 26 2
Slide 4: 1. Introduction
1. Introduction 3
Slide 5: Pakistan's first commercial bank
Pakistan’s first commercial bank # 1 bank in Pakistan by(1): International footprint #1 PKR 1,867 Assets (bn) (US$ 18.4) United Kingdom Netherlands Belgium France Kyrgyz Republic Switzerland Turkey #1 PKR 1,525 United States Afghanistan Deposits (bn) of America Lebanon (US$ 15.0) Bahrain UAE Nepal O
Slide 6: HBL – the foundation of Pakistan's financial sector
HBL – the foundation of Pakistan’s financial sector Corporate milestones Current shareholders(1) Institutional and retail Incorporated in Bombay investors, 7.5% 1941 Aga Khan Fund for Economic Development Established operations in Pakistan and moved Head GoP, 41.5% (“AKFED”), 51.0% 1947 Office to Ka
Slide 7: Track record of consistent growth and profitability
Track record of consistent growth and profitability Strong deposit growth and selective loan expansion… Adequately provided NPLs (PKRbn) (PKRbn) 66.6% 61.6% 85.1% 83.5% 83.2% 48.9% 77.4% 83.5% 82.6% 41.4% 40.3% 39.0% 65 67 66 1,525 60 1,401 55 1,215 48 934 683 747 503 564 595 455 460 457 2009 2010 2
Slide 8: Strong earnings and Dividends
Strong earnings and Dividends Strong set of earnings even with bonus shares issued Growing dividend payments (PKR) (PKR) 2 for 10 1 for 10 1 for 10 1 for 10 1 for 10 9.7x 10.0x 8.4x 54.1% 55.5% 46.1% 46.6% 7.3x 38.3% 40.8% 6.4x 5.3x 21.6 12.0 18.3 18.4 17.2 14.1 7.5 8.0 11.1 6.5 7.0 6.0 2009 2010 20
Slide 9: 2. Highlights
HBL Highlights 2.
Slide 10: Pakistan's leading bank poised for the next phase of expansion
Pakistan’s leading bank poised for the next phase of expansion Leading brand in Pakistan’s financial services sector anchored by a large 1 domestic network 2 Diversified international presence 3 Universal business model 4 Successful expansion into alternative distribution channels 5 Strategic initia
Slide 11: Brand positioning and largest branch network leading to strong deposit growth
1 Brand positioning and largest branch network leading to strong deposit growth Historical market share by deposits HBL is maintaining a leading market #1 share of c.15% 15.3% 15.1% 14.8% 13.4% 13.5% 12.6% 2009 2010 2011 2012 2013 2014 Domestic branches Total deposits growth has outpaced market 1,59
Slide 12: Large and diversified international presence which is unique among regional peers
2 Large and diversified international presence which is unique among regional peers International footprint Direct presence in 25 countries United Kingdom Network of 58 branches(1) Netherlands Belgium France Presence in key financial hubs; London, Kyrgyz Republic Switzerland Turkey United Stat
Slide 13: Universal business model
3 Universal business model Financial Corporate & Payment International Institutions & Islamic Branch Banking Investment Treasury Services Other businesses Banking Global Trade Banking Banking Group Services Consists of Branch Corporate Banking Involves fixed Provides a range Consists of
Slide 14: Strong investment in technology underpins commitment to the future
4 Strong investment in technology underpins commitment to the future Investment in IT infrastructure (PKRmn) 2,716 2,270 1,445 1,256 1,313 1,162 895 917 791 849 282 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Development & Strengthening & New systems for delivery 1 implementation of core
Slide 15: Payment Services Group – product suite
4 Payment Services Group – product suite Debit / Prepaid / Payroll Proprietary, VISA, MasterCard & CUP Classic, Titanium & World Cards HAW – Conventional ATMs HAW – Islamic Internet Banking Tele Sales Internet Acquiring − PIL Cross PSG Digital POS Acquiring − Credit Cards Selling
Slide 16: Strategic initiatives
5 Strategic initiatives Growth in Consumer Lending Growth in Agricultural Financing (PKRbn) (PKRbn) 22.4 24.2 19.5 18.6 15.3 15.5 14.4 15.1 14.8 12.6 9.4 9.9 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 Increasing fee and other non-interest income Other growth vectors (PKRbn) Drive
Slide 17: Strong balance sheet with ample liquidity, high capitalization and conservative risk management
6 Strong balance sheet with ample liquidity, high capitalization and conservative risk management Strong deposit growth Liabilities composed mainly of sticky deposits (PKRbn) Other 66.5% 61.6% liabilities 48.9% 10.2% 41.4% 40.3% 39.0% Current 30.7% 1,525 1,401 1,215 Total 934 Time liabilities: 683 7
Slide 18: Delivering consistently strong profitability
7 Delivering consistently strong profitability Net interest margin(1) Cost to income ratio 16.00% 12.00% 48.6% 44.6% 42.3% 40.6% 41.3% 41.2% 8.00% 4.00% 0.00% 1Q09 4Q09 4Q10 4Q11 4Q12 4Q13 4Q 14 2009 2010 2011 2012 2013 2014 Income yield Cost of funds Net interest margin Profit before tax (“PBT”) /
Slide 19: Visionary and accomplished Board
8 Visionary and accomplished Board Chairman President & CEO Directors Sultan Ali Allana Nauman K Dar Sajid Zahid R Zakir Mahmood Chairman President & CEO Director Director Chairman, HRRC(1) Member, BRMC & Member, BAC & Chairman, BRMC(1) HRRC(1) HRRC(1) Mr. Sultan Ali Allana has been Chairman Mr
Slide 20: First class senior management team
8 First class senior management team Senior management profiles Nauman K. Dar Rayomond Kotwal Ayaz Ahmed Nausheen Ahmed President Chief Financial Officer Head, Acquisitions & Company Secretary & Chief Executive Officer 1 / 18 / 29(1) Investments & Head Legal 13 / 33 / 33(1) 15 / 23 / 33(1) 9 / 9 / 2
Slide 21: 3. Financial performance
3. Financial performance 20
Slide 22: FY2014 results summary | Balance sheet
FY2014 results summary | Balance sheet Stable loan and deposit growth with strong liquidity Strong capitalization under Basel III regime (PKRbn) (PKRbn) 16.2% 45.0% 43.3% 15.4% 1,525 1,401 12.9% 13.3% 129 109 630 661 2013 2014 2013 2014 Gross loans Total deposits Loans-to-deposits ratio CET 1/Tier 1
Slide 23: FY2014 results summary | Income statement
FY2014 results summary | Income statement Strong growth in interest and non-interest income High profitability and performance(1) (PKRbn) (PKRbn) 22.6% 4.63% 18.2% 69 4.06% 32 55 23 24 19 2013 2014 2013 2014 Net interest income Non-interest income Net interest margin Net profit after tax RoE Growt
Slide 24: Asset composition
Asset composition Evolution of asset composition Investments Lending to Fis Lending to Fis 25.1% 0.6% 1.8% Investments 49.5% Other assets Other assets 7.8% 5.9% 2014 2009 Cash and balances with PKR1,867bn Cash and PKR864bn Advances banks balances with 52.6% 10.9% banks 13.9% Advances 31.9% 23
Slide 25: Loan portfolio
Loan portfolio Loan portfolio composition by line of business Loan portfolio composition by industry segments SOE 12.0% International Corporate Others 26.7% Government 50.3% 31.3% 9.3% Wholesale & Net loans: Net loans: Others retail PKR595bn PKR595bn 9.6% 2.3% Consumer 3.7% Agriculture 4.8% Textile
Slide 26: Deposits composition and rates
Deposits composition and rates Deposit composition Growth in low cost current account deposits (PKRbn) 28.4% 26.7% 21.9% 30.8% 31.0% 33.0% 522 411 43.9% 45.6% 43.9% 317 46.0% 42.3% 40.8% 249 194 159 29.4% 34.2% 23.2% 26.0% 26.7% 26.2% 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 Fixed
Slide 27: Appendix - Additional information
Appendix - Additional information 26
Slide 28: Consolidated balance sheet
Consolidated balance sheet (PKRmn) FYE 31 December 2009 2010 2011 2012 2013 2014 Assets Cash and balances with banks 120,207 119,053 150,749 205,210 192,818 202,968 Lending to financial institutions 5,353 30,339 41,581 24,828 35,271 34,313 Investments 216,468 254,909 418,604 797,095 826,062 924,307
Slide 29: Consolidated statement of profit and loss
Consolidated statement of profit and loss (PKRmn) FYE 31 December 2009 2010 2011 2012 2013 2014 Mark-up / return / profit / interest earned 76,076 81,325 98,580 116,773 120,223 137,842 Mark-up / return / profit /interest expensed 33,406 34,330 42,182 59,012 65,207 68,755 Net mark-up / profit / inter
Slide 30: Net Advances (By line of business)
Net Advances (By line of business) PKRmn, as at 31st December 2014 Group Advances Percent Corporate 299,354 50% Retail (excluding Agriculture) 44,300 7% Commercial 32,003 5% Agriculture 25,190 4% Consumer 21,742 4% Others (Islamic & FI) 13,527 2% Domestic 436,116 73% International banking 159,200 27
Slide 31: Gross advances (Segment wise)
Gross advances (Segment wise) PKRmn, as at 31st December 2014 Sectors Advances Percent Public sector enterprises 73,092 11.05% Government 55,448 8.38% Wholesale & retail trade 62,797 9.49% Textile 79,580 12.03% Financial 45,637 6.90% Power & energy 42,977 6.50% Individual 40,181 6.07% Agriculture bu