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Report Date : |
29.04.2014 |
IDENTIFICATION DETAILS
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Name : |
HABIB METROPOLITAN BANK LIMITED |
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Registered Office : |
Ground Floor, Spencer’s Building, G.P.O. Box 1289, I.I.
Chundrigar Road, Karachi |
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Country : |
Pakistan |
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Financials (as on) : |
31.12.2013 (Unconsolidated) |
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Year of Establishment : |
1992 |
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Com. Reg. No.: |
0028018 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
· Engaged in providing Commercial Banking and related services in Pakistan · Subject also handles treasury transactions for the Government of Pakistan (GOP) as an agent to the State Bank of Pakistan (SBP). · Subject offer services including Demand Drafts, Swift System, Letter of Credit, Pay Order, Mail Transfer, Foreign Remittance, Short Term Investment, Equity Investment, Commercial Finance, Trade Finance, International Finance & Home Finance |
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No of Employees : |
2,000 - 3,000 employees |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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Pakistan |
B2 |
B2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
pakistan ECONOMIC OVERVIEW
Decades of internal political
disputes and low levels of foreign investment have led to slow growth and underdevelopment
in Pakistan. Agriculture accounts for more than one-fifth of output and
two-fifths of employment. Textiles account for most of Pakistan's export
earnings, and Pakistan's failure to expand a viable export base for other
manufactures has left the country vulnerable to shifts in world demand.
Official unemployment was 6.6% in 2013, but this fails to capture the true
picture, because much of the economy is informal and underemployment remains
high. Over the past few years, low growth and high inflation, led by a spurt in
food prices, have increased the amount of poverty. As a result of political and
economic instability, the Pakistani rupee has depreciated more than 40% since
2007. The government agreed to an International Monetary Fund Standby Arrangement
in November 2008 in response to a balance of payments crisis. Although the
economy has stabilized since the crisis, it has failed to recover. Foreign
investment has not returned, due to investor concerns related to governance,
energy, security, and a slow-down in the global economy. Remittances from
overseas workers, averaging about $1 billion a month since March 2011, remain a
bright spot for Pakistan. However, after a small current account surplus in
fiscal year 2011 (July 2010/June 2011), Pakistan's current account turned to
deficit in the following two years, spurred by higher prices for imported oil
and lower prices for exported cotton. Pakistan remains stuck in a low-income,
low-growth trap, with growth averaging about 3.5% per year from 2008 to 2013.
Pakistan must address long standing issues related to government revenues and
energy production in order to spur the amount of economic growth that will be
necessary to employ its growing and rapidly urbanizing population, more than
half of which is under 22. Other long term challenges include expanding
investment in education and healthcare, adapting to the effects of climate
change and natural disasters, and reducing dependence on foreign donors.
|
Source
: CIA |
HABIB METROPOLITAN BANK LIMITED
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Registered
Address |
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Ground Floor, Spencer’s Building, G.P.O. Box 1289, I.I.
Chundrigar Road, Karachi, Pakistan |
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Tel # |
92 (21) 111-141-414 |
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Fax # |
92 (21) 32630404, 32630405 |
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a. |
Nature of Business |
Engaged in providing Commercial Banking and related services in
Pakistan |
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b. |
Year Established |
1992 |
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c. |
Registration # |
0028018 |
The Bank operates 138 (2010: 135) branches including 4 (2010: 4) Islamic banking branches and 25 (2010:8) sub branches in Pakistan
KPMG Taseer Hadi & Co.
(Chartered
Accountants)
Subject Company was established as a Public Limited Company in 1992 and
is listed at stock exchanges of Pakistan
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Names |
Designation |
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Mr. Kassim Parekh Mr. Sirajuddin Aziz Mr. Ali S. Habib Mr. Bashir Ali Mohammad Mr. Mohamedali R. Habib Mr. Muhammad H. Habib Mr. Sohail Hasan Mr. Syed Zubair Ahmad Shah Mr. Tariq Ikram |
Chairman President & Chief Executive Officer Director Director Director Director Director Director Director |
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Categories |
Percentage (%) |
|
Individuals Investment Companies Joint Stock Companies Directors, Chief Executive Officer and
their spouse and minor children Executives NIT / ICP Associated Companies, Undertakings &
related parties Banks, DFI’s NBFIs, Insurance Companies,
Modarabas & Mutual Funds Foreign Investors Co-operative Societies Charitable Trust Others |
12.95 0.21 0.64 2.81 0.24 6.89 51.18 13.81 10.22 0.94 0.06 0.06 |
Engaged in providing Commercial Banking and related services in Pakistan. The bank also handles treasury transactions for the Government of Pakistan (GOP) as an agent to the State Bank of Pakistan (SBP). Currently bank offer services including Demand Drafts, Swift System, Letter of Credit, Pay Order, Mail Transfer, Foreign Remittance, Short Term Investment, Equity Investment, Commercial Finance, Trade Finance, International Finance & Home Finance
2,000 - 3,000
The economy was challenged by the rise of inflationary expectations due
to reduction in electricity subsidy, withdrawal of tax exemptions and
enhancement of tax levied. Some of the fiscal measures, namely the two-phased
electricity tariff increase in the first half of the fiscal year along with
increase in sales tax and income tax rates, contributed to inflationary
pressure. However, some of the other fiscal measures implemented by the
government are expected to impact the inflation outlook of FY14 - and alleviate
inflationary pressures - by reducing budgetary borrowings from the banking
system. Trade deficit is expected to increase to 7 percent of the GDP - with
the quantum of the deficit projected to USD 17.7 Bill in FY14. This estimate accounts
for the anticipated augmentation of 6 percent in export receipts due to the
recently adopted GSP Plus status and the growth of an approximate 8 percent in
import payments driven by an expected increase in domestic industry activity.
The relaxation in monetary policy played a role in the growth in private sector
credit and thus, signs of economic stimulation have been sighted. However,
worsening inflation outlook prompted the SBP to increase the policy rate by 50
basis points twice in the year under review - once in September and then again
in November. Further, in September 2013, the SBP linked the minimum rate of
return on average balances held in saving deposits with the interest rate
corridor. Designed to ensure that deposit rates respond more strongly to policy
rate changes, and geared towards deposit mobilization and growth in deposits,
this measure will increase the banking sector's cost of deposits. The Karachi
Stock Exchange registered a growth of 15% during the year 2013 mainly due to
foreign investors responding to the confidence building measures of Government
for the equity markets.
Bank continues to make steady progress in the present difficult
conditions as reflected in the attached financial statements. During the year
under review, the Bank's deposits increased by 13.7% to Rs. 248 Bill; in so
growing, the Bank's deposits stayed ahead of the industry deposit growth curve.
Meanwhile advances increased by 17.3%, reflecting the expansion in private
credit flow of the economy. In spite of operating amidst a relaxed monetary
stance and low interest rates for most of the year, enhanced cost efficiency,
improved liability profile and provisioning cushion allowed profitability to be
maintained. The Bank's profit-after-tax amounted to Rs. 3.53 Billat the end of
year under review, exhibiting a slight increase of 3.5% from the
Profit-after-tax posted at the end of year 2012. At yearend, HabibMetro's net
equity stands at Rs. 27 Bill with a comfortable 16.1% capital adequacy level against
the required 10%. The performance translates into earnings per share (EPS) of
Rs. 3.37.
For the thirteenth consecutive year, the credit rating of the Bank has
been maintained at AA+ (double AA plus) for long term and A1+ (A one plus) for
short term by the Pakistan Credit Rating Agency Limited. These ratings denote a
very high credit quality, a very low expectation of credit risk and a very
strong capacity for timely payment of financial commitments.
In the challenging environment, maintaining asset quality and margins
will require focused attention. Insha'Allah, your Bank will continue to enhance
its market share in the country's trade / commercial activity by servicing
& enhancing its customer base. In order to ensure long-term sustainability
and maintain success, core competitiveness and efficiency remains the foremost
agenda of HabibMetro.
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 99.50 |
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UK Pound |
1 |
Rs. 167.00 |
|
Euro |
1 |
Rs. 137.25 |
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 it’s 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 into Metropolitan Bank Limited and the merged entity was named Habib Metropolitan Bank Limited. Demonstrating a strong commitment to Pakistan economy, HBZ is the principal shareholder of HABIBMETRO. HABIBMETRO 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. HABIBMETRO 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 HABIBMETRO’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.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.50 |
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UK Pound |
1 |
Rs.101.69 |
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Euro |
1 |
Rs.83.62 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
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This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.