Habib Bank Activities - AKFED

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kmaherali
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Pakistan Banking Awards: Best Bank for Small Businesses and Agriculture Award

By Our Correspondent

Published: May 15, 2016

Organisers claim awards are merit-based, independent and free of pressure. PHOTO: ONLINE

Exract:

Habib Bank (HBL) received the Best Bank for Small Businesses and Agriculture Award for its strong performance, diversification and quality of small and medium enterprises (SME) and agricultural lending nationwide.

HBL also grabbed the award for the Best Environment and Social Governance Bank for contributing the most in terms of the long-term sustainability of the environment, employees, customers and communities.

http://tribune.com.pk/story/1103573/pak ... best-bank/
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Post by kmaherali »

Asiamoney best bank awards 2019: Pakistan

Award winners Best domestic bank: HBL

Best corporate and investment bank: HBL

Best bank for CSR: HB


After a miserable year in 2017, Pakistan’s biggest bank bounced back in 2018 to become, well, bigger still. HBL took a hit to its bottom line and its reputation when the New York bank authorities fined it $225 million in 2017 for a decade of compliance breaches. With a new chief executive, ex-JPMorgan alumnus Muhammad Aurangzeb, at the helm to replace Nauman Dar, who left in the wake of the New York trouble, HBL rebounded to report annual profit after tax of PRs12.4 billion ($90 million) for the 2018 calendar year, up 41% from 2017. HBL said it achieved that number despite what it described as “an ever-evolving landscape of regulatory changes.” That’s a reference to the new broom Aurangzeb has swept through the country’s oldest bank, which was founded before Pakistan became a nation. Returning to Pakistan after 18 years abroad with JPMorgan and ABN Amro, Aurangzeb vowed to institute the world’s best standards in compliance, which he says is simply sound business practice. So far, he says, customers seem happy to join him on that journey. Deposits grew 7% in 2018, despite Pakistan’s grim economic environment and a change of government. This year, HBL made PRs1 trillion in advances for the first time; another benchmark, having received double that in annual deposits in 2015 – the first Pakistani bank to achieve both levels. That speaks to how dominant HBL is in Pakistan; 11 million customers accessing 1,700 branches for a market share of 15%. If Imran Khan’s new government delivers even half what it promises, Aurangzeb says HBL is poised to soar even higher – and put the New York setback well behind it. ▲ Back to top Best corporate and investment bank: HBL In a faltering economy, HBL’s corporate and investment banking business managed to stand tall in 2018. The commercial banking side experienced record growth, as its lending book expanded 21% in 2018 against the previous calendar year. At the end of 2018, HBL’s lending book was tracking at a record high of PRs63.8 billion ($460 million). With a large number of China-devoted desks at the head office in Karachi, the capital Islamabad, and uniquely for a foreign bank, in China’s western metropolis Urumqi, HBL has positioned itself for a bonanza from the massive China-Pakistan Economic Corridor (CPEC) infrastructure programme. HBL’s investment banking business, run by Farhan Talib, says it closed 10 transactions, worth a total of over $3.5 billion, between September 2017 and September 2018. Notable deals by the bank included advising Pakistan’s first private-sector transmission line project; this is the CPEC-related, 878-kilometre circuit that is delivering power to Lahore, Pakistan’s second-biggest city, and is a $1.7 billion project backed by the world’s largest utility, China’s State Grid Corporation. Another big CPEC deal advised by HBL was the $520 million Thar Energy coal station in provincial Sindh, in Pakistan’s south. As of November 2018, HBL has managed $6 billion worth of CPEC business, and that number looks set to rise. In November, HBL tied up with China’s largest investment bank, China International Capital Corporation Limited (CICC), to jointly provide investment banking services to Pakistan and Chinese companies.

https://www.euromoney.com/article/b1ddg ... 9-pakistan
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HBL partners with Ehsaas to benefit 7.5 million in Pakistan

Karachi, Pakistan, 9 April 2020 - Habib Bank Limited (HBL) has partnered with the Government of Pakistan to enable the delivery of the Ehsaas Emergency Cash programme, the largest social safety net initiative in Pakistan’s history.

This programme has been launched by the Government of Pakistan to support the daily wagers and piece-rate workers who have suffered from the lockdown in the country due to the ongoing Coronavirus (COVID-19) pandemic.

HBL is leading this effort across Sind, Baluchistan, Punjab and ICT, in disbursing approximately PKR 90 billion to an estimated 7.5 million beneficiaries. The new initiative builds on an existing programme between HBL and Ehsaas, known as Kafaalat (meaning sufficiency) which provides support to 3 million beneficiaries and benefits the most deserving women across the country. HBL will now expand its contribution to provide emergency cash assistance of PKR 12,000 per family.

HBL is one of the two Ehsaas exclusive funds disbursement partners selected to enable the payment of emergency cash.

“We are honoured to expand our partnership with Ehsaas and to play our part in assisting the Government of Pakistan during this difficult time,” said Muhammad Aurangzeb, President and CEO, HBL.

“We fully support the Prime Minister of Pakistan in this initiative and laud the support given by the Provincial Governments for the programme.

“While the Coronavirus crisis continues to develop and cause uncertainty to all of us, HBL is keenly aware of its duty to support Pakistan at this difficult time,” he said. “The Ehsaas Emergency Cash Programme brings together various programmes for poverty alleviation into a single platform while leveraging the role of the private sector and digital technologies. HBL’s national presence, large distribution network, branchless banking platform HBL Konnect and investment in technology and talent, enables the Bank to undertake this huge task.”

Dr Sania Nishtar, Special Assistant to the Prime Minister on Poverty Alleviation an Social Safety and Chairperson BISP, stated that through the Ehsaas Emergency Cash Programme, the Government will provide social protection to more than 12 million deserving families affected by the economic downturn due to the Coronavirus outbreak. The Government has developed a detailed beneficiary identification process, SMS campaign, district level verification procedure, wealth profiling criteria, and payment mechanism, thus ensuring rule based implementation to benefit the most deserving.

https://www.akdn.org/press-release/hbl- ... n-pakistan
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HBL wins “Asia Best Bank Transformation 2020” award by Euromoney

The Bank also wins ”Pakistan’s Best Bank 2020” for a second year running.

Karachi, Pakistan, 16 July 2020 - Euromoney awarded the Habib Bank Ltd (HBL) the dual accolades of Asia’s Best Bank Transformation 2020 and Pakistan’s Best Bank 2020 (the latter award for the second year running). Key elements that helped HBL win these awards were HBL’s work in the sphere of digitalisation, the Bank’s growing presence in China and its business initiatives with Chinese corporations and financial institutions.

Leading the transformation:

- HBL digitally disbursed more than US$ 750 million (PKR 125 Billion) to over 10 million Pakistani households under the Government of Pakistan’s Ehsaas Emergency Cash Programme for COVID-19 relief.
- HBL is a regional banking powerhouse, with branch presence in China and a leadership role in the CPEC projects.

Commenting on the award, Muhammad Aurangzeb, President and CEO, HBL, said, “This accolade reflects the strides HBL has made in its pivot towards becoming a ‘technology company with a banking license’. HBL’s digital banking platform, HBL Konnect, has over 4 million customers, of whom 25% are women, thus driving the country’s and the Bank’s Financial Inclusion agenda.”

https://www.akdn.org/press-release/hbl- ... -euromoney
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Image
The HBL (Habib Bank Limited) tower in Karachi, Pakistan, is LEED-certified. LEED (Leadership in Energy and Environmental Design) is a green building certification programme used worldwide.
HBL

HBL becomes the first Pakistani bank to open a branch in Beijing

Karachi, Pakistan, 22 March 2021 - HBL became the first Pakistani bank to open a branch and serve clients in Beijing, China’s capital city.

HBL is the first and only bank from Pakistan to have a branch in Beijing. It is also one of three banks from South Asia and the MENA region to offer end-to-end RMB intermediation in China. HBL Beijing has become HBL’s second branch and its managing branch in China. Both branches in Beijing and Urumqi are equipped with foreign exchange and RMB licenses to better facilitate customers’ requirements in multiple currencies.

HBL’s journey in China began in 2005 when it established its Representative Office in Beijing, which was followed by the establishment of branch operations in Urumqi in 2017. With the opening in Beijing, HBL’s presence in China will allow the bank to interact with State-Owned Enterprises (SOEs) and leading financial institutions involved in CPEC and across Belt and Road Initiative (BRI) corridors. The opening confirms the China market as a very important market for HBL, not only in terms of the business in China and CPEC, but also for Chinese companies working on projects in countries across the HBL network.

The Chairman of HBL, Sultan Ali Allana, said, “We look forward to playing a leading role in facilitating regional trade and serving our valued customers throughout HBL’s international network.”

Muhammad Aurangzeb, President & CEO of HBL said: “China remains the lynchpin of HBL’s international strategy. HBL is the largest executor of CPEC related financing in Pakistan, and the Bank’s presence in China has put us in a unique position to connect our clients across the HBL network directly with the businesses in China.” Mr. Aurangzeb also expressed appreciation to the regulators for having granted the branch license and their support in “developing market-based capabilities and encouraging financial institutions like HBL to provide clients best-in-class product and services”.

The inauguration ceremony for HBL Beijing was attended by clients, regulators, and senior executives of the Bank from across HBL’s international network. From Pakistan, Mr. Jameel Ahmad, Deputy Governor – State Bank of Pakistan, Mr. Sultan Ali Allana, Chairman - HBL, Mr. Muhammad Aurangzeb, President & CEO – HBL, along with senior executives and HBL’s customers, joined the ceremony virtually.

https://www.akdn.org/press-release/hbl- ... ch-beijing
kmaherali
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HBL Enriching Lives: Leading a purpose led transformation for itself & the nation

Post by kmaherali »

The ethos of 'Enriching lives’ enables HBL to drive its impact and sustainability to contribute positively to environment, economy, and society. Using these metrics, the Bank is working towards creating long- term value for their shareholders and employees, through an integrated sustainability strategy for communities. The report highlights the value and goals that HBL has, the right tools, teams, and mechanisms through which it intends to contribute towards Sustainable Development Goals.

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In June, Pakistan’s largest commercial bank, HBL, released its first-ever Impact & Sustainability report (2021), ‘Enriching Lives.’ A much needed impact analysis, which all major companies in the country’s private sector need to do if they are to play their part in helping the nation overcome its dire situation on climate change, along with its unabated population growth, which have made it seemingly difficult for the country to achieve the Sustainable Development Goals (SDGs) by 2030. The report outlines HBL’s institutional interventions to serve the needs of communities, people, and the planet.

HBL, with a customer base of almost 30 million, plays a crucial role in the country’s financial eco-system, but also of consequence is the role it plays in the nation’s overall eco-system. The bank’s overall strategic thrust is based on a six-point agenda, which emphasizes giving back to the community as one of its key pillars.

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Bank’s Strategic Thrust

Bank with a soul

HBL, which is a part of the Aga Khan Fund for Economic Development (AKFED), understands keenly the value of maintaining a balance between what they do and what they share back with the community. For this very reason, its spending on social and developmental causes is the highest in the industry and in specific sectors of the country.

Understanding the significant challenges of health, education, and community development in Pakistan, HBL’s philanthropic funding strategy follows the ethos of “Enriching Lives.” The Bank currently allocates one percent of its profit after tax to the HBL Foundation, a non-profit Trust created in 2010 to promote the development and advancing the welfare and well-being of the people of Pakistan, with the object of improving their quality of life. From 2023, this allocation will increase to 1.5 percent of profit after tax.

Read more: HBL launches its first impact and sustainability report https://www.globalvillagespace.com/hbl- ... ty-report/

The report highlights HBL’s work through a data-driven summary of their Impact and Sustainability performance, most importantly linking it with the SDG goals. Given this is the first report, they shared the progress to date on ongoing programs and activities. However, they promise that going forward; a yearly update will be given through the HBL Impact & Sustainability Report.

HBL was actively involved in crafting the SBP’s Green Banking Guidelines in 2017, which encourages environmental risk management within banks and promotes climate finance to reduce environmental vulnerabilities. In addition, the Bank integrated the Aga Khan Development Network’s (AKDN’s) own cross-cutting environment & climate committee guidelines into its environmental management systems.

HBL has also shown its commitment to sustainable development and encouraged Pakistan’s banking industry to adopt Environmental, Social, and Governance (ESG) practices in their strategic decision-making. All its internal businesses, investments, and operations are designed strategically to create a more sustainable, equitable, and financially inclusive world where the current population can meet its needs without depleting the resources of future generations.

Enriching lives

HBL is a pioneer in the banking sector in Pakistan in developing and implementing a Social and Environmental Management Policy focusing on ensuring robust system risks in line with the International Finance Corporation’s (IFC) Performance Standards. As part of this policy, it has set out some key goals. They will try to achieve net-zero by eliminating all avoidable emissions by 2030. In 2020, the HBL decided not to finance any new coal projects or financing for coal of any kind. In 2021, the Bank stopped financing industries that contribute to deforestation. They are also actively working on reducing their carbon footprint and incorporating LEED/ IFC standards in most of their major office buildings. The iconic HBL Tower in Karachi is LEED-certified; the most widely used green building rating system globally.

In 2019, HBL also signed the Green Investment Principles (GIPs) with China and 27 other global institutions. It includes incorporating seven principles at three levels – strategy, operations, and innovation – for green investments in the Belt and Road Initiative (BRI). These principles are intended to promote environmental friendliness, climate resilience, social inclusiveness, and improved management of environmental and social risks for new investment projects in the BRI in light of the UN SDGs and the Paris Climate Agreement.

Read more: HBL – A ‘Technology Company with a Banking License’ https://www.globalvillagespace.com/hbl- ... g-license/

The ethos of ‘Enriching lives’ is being used to drive their KPIs at the macro level to report impact and sustainability at three levels: the environment, economy, and society. The report identifies programs and other initiatives it is working on within these three areas and across the SDGs – highlighted very neatly and effectively in an impact table. Out of their projects under the economy category – those under financial inclusion touch on eight SDGs; similarly, transforming agriculture touches on six goals. Under the environmental level, their projects in Green investment touch five SDGs, and renewable energy touches four SDGs. One of the key things that HBL’s Impact and Sustainability measurement and management does is that it enables the Bank to optimize programs and actively contribute to protecting the country’s resources.

Steps towards sustainable environment

HBL has set up a Social and Environmental Management System (SEMS) policy that ensures a robust system, which safeguards against credit, liability, and reputational risks in line with the IFC performance standards. This ESG policy is also used to benchmark customers against ESG’s strict criteria. It also made a major effort to align its own internal operations with the SBP’s 2017 green guidelines. It set up a Green Operations Unit in 2018 that has implemented multiple initiatives to reduce the impact of HBL’s operations on the environment while also reducing the cost of the Bank. The initiatives include automating systems, remote monitoring, and process re-engineering. The unit focused on conserving energy and reducing the carbon footprint of the Bank, reducing HBL’s paper consumption, and lessening the Bank’s reliance on fossil fuels/ grid electricity through implementing solar panels in over 170+ locations, among other things.

Building sustainable economy

HBL has quickly moved into the digital realm and has created a tagline for itself as a ‘technology company with a banking license’. Under building a sustainable economy, the report identifies the extensive areas that HBL is working on, including digitalization, financial inclusion, financial literacy programs, SMEs, Development Finance, microfinance, and low-cost housing. The HBL Impact & Sustainability Progress at a glance table highlights how the bank’s financial inclusion projects also touch on the most SDGs.

It understands that the financial inclusion of the population is critical to Pakistan’s economic development and the Bank’s progress. It is spearheading projects to deliver easily accessible, comprehensive banking solutions to all segments of society with a particular focus on solutions for women, the under banked, and the unbanked segments. HBL’s Impact report states, “For us, harnessing digitization for the benefit of society is a conscious decision toward our objective of fostering a technology driven financial ecosystem for the masses in Pakistan.” HBL uses technology to simplify financial transactions by digitizing money flow across individuals and institutions to exponentially increase customer acquisition. Additionally, HBL is supporting Farm-to-Fork ecosystem in the country which aims to make food value chains more equitable, healthier and greener.

During the Covid-19 pandemic, HBL worked with the government to ensure emergency cash distribution to over 14 million households under the Ehsaas Kafalat program. In addition, among other notable programs, the Bank has partnered with various provincial governments to enable transparent, efficient, and quick access to subsidies for farmers. This partnership is now evolving to help target digital subsidies at the time of input purchase by farmers.

Read more: HBL teams up with PAFLA to empower Pakistan’s freelance industry https://www.globalvillagespace.com/hbl- ... -industry/

Walking the talk of sustainable society

HBL, as one of the country’s oldest banks and as part of the Aga Khan Development Network, has a strong sense of belief in the role it can play in nation-building, providing thought leadership for the country and promoting diversity and cultural heritage of the nation. Its dedication to uplifting communities is also evident in its existing and the future increase it has announced in its philanthropic spending commitment to health, education, disaster response, and women empowerment.

HBL prides itself that its Social Governance and Management policies lay the groundwork for the Bank to develop a sustainable financial ecosystem that is people-centric and not just profit-driven. Its walking the talk starts at home with HBL’s commitment to employing 25 percent females in its workforce and creating an accessible work friendly environment in which they can prosper.

It has a diversity council that has 44 percent female representation and is cross-functional; it is mandated to drive HBL’s gender diversity strategy to steer the Bank’s vision. At the time of privatization in 2004, women were only 3 percent of employees; this has increased to more than 20 percent after focused recruitment efforts.

A crucial part of creating a sustainable society is HBL’s work with promoting art and culture in the country, including sponsoring children’s art competitions, holding monthly interactive sessions on art, and having its own art collection by new and contemporary artists throughout its offices. In 2021, HBL supported the restoration and renovation of the Galerie Sadequain at Frere Hall in Karachi, over 30,000 people visited the Ayesha Khalid’s exhibition, enabling it to become a permanent, international standard exhibition space at a public venue.

HBL Foundation – through which a large part of HBL’s philanthropic funding for social development takes place, plays a significant role in the belief in needing a sustainable society. It especially realizes that there is a dire need in the country in the fields of education and health to help improve the lives of communities. The Foundation was created as an irrevocable trust by HBL in 2010 and monitors and evaluates the grants that it provides annually to multiple organizations across Pakistan.

Read more: HBL launches its 9th Prestige Lounge in Karachi https://www.globalvillagespace.com/hbl- ... n-karachi/

HBL is working towards long-term value creation for its shareholders and employees, where value is integrated into its sustainability strategy for communities. HBL Impact and Sustainability report highlights the importance and goals that HBL has and the strategy through which it intends to achieve these, and how we can evaluate its results on this front going forward.

https://www.globalvillagespace.com/hbl- ... he-nation/
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Re: Habib Bank Activities - AKFED

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HBL faces liability in terror financing case in US, bank says will ‘vigorously’ contest allegations
Dawn.com Published September 29, 2022 Updated about 13 hours ago

Pakistan’s largest bank, Habib Bank Limited (HBL), faces secondary liabilities in a terror financing case in the United States in which the plaintiffs had alleged the bank aided and abetted al-Qaeda terrorism and joined in a conspiracy to launch attacks that killed or injured 370 people in Afghanistan between 2010 and 2019.

The bank faces the liabilities under the Justice Against Sponsors of Terrorism Act as a party that “aids and abets, by knowingly providing substantial assistance, or who conspires with the person who committed such an act of international terrorism”, according to a New York district court order issued on September 28.

However, in a statement issued today, HBL said the allegations were “meritless”, adding that the bank was contesting them fully and vigorously.

“The public record is clear that HBL is unwavering in its commitment to combating the financing of terrorism, and — as has been well documented — its extensive global implementation of anti-money laundering compliance controls has been highly successful and lauded by regulators around the world,” the statement read.

According to the court order, a copy of which is available with Dawn.com, the plaintiffs alleged that the attacks were planned, authoriZed and committed by al-Qaeda, sometimes in conjunction with one or more other groups, including: Lashkar-e-Taiba, Jaish-e-Mohammad, the Afghan Taliban, including the Haqqani Network, and the Tehreek-e-Taliban Pakistan.

Judge Lorna G. Schofield said HBL “placed terrorists or those linked to terrorists on a ‘whitelist’ or ‘good guy list’ of people ostensibly pre-cleared for reduced scrutiny of their transactions [and] engaged in tactics, such as ‘wire-stripping’, that shield the identities of parties to transactions”.

The order stated that the plaintiffs had presented sufficient facts to infer that the bank used its New York branch “to further [al-Qaeda’s] terrorist goals”.

“The complaints give rise to a reasonable inference that defendant knew its customers were integral to al-Qaeda’s overall campaign of terrorism, carried out directly and by proxy. That is sufficient to allege the general awareness element.

“The complaints allege that defendant took deliberate steps to help customers evade international sanctions regimes, and in doing so incurred business risk that ultimately led to defendant’s expulsion from the US. Those allegations are sufficient …,” the order stated.

Judge Schofield said the allegations were sufficient to show that HBL “joined in a conspiracy to commit the attacks”. However, she turned down the plaintiffs’ claims of primary liability because none of the alleged banking services provided by HBL “were themselves acts of international terrorism”.

In its statement, HBL said its motion was successful in two respects: the court dismissed the primary liability claim and narrowed the case substantially.

“The court also stated secondary liabilities will be evaluated following due legal proceedings and no judgement was passed by the court on this matter,” it stated.

“HBL has made investments in management and resources to strengthen its AML and CFT protocols by partnering with global experts in this field. The bank seeks to adhere to the highest standards of compliance with international and country laws and regulations,” it added.

Prior to this, HBL had agreed to pay a fine of $225 million — the largest ever imposed upon a Pakistani bank by regulatory authorities — in 2017 for various violations of New York’s regulatory provisions.

The bank had also agreed to surrender its licence to operate a branch in New York and unwind its operations there. The branch had been operational since 1978.

In a strongly worded release issued at the time, the Department of Financial Services (DFS) of New York State had harshly castigated the bank and added that “DFS will not stand by and let Habib Bank sneak out of the United States without holding it accountable for putting the integrity of the financial services industry and the safety of our nation at risk.”

HBL had become the target of an enforcement action by DFS for 53 separate violations allegedly committed between 2007 and 2017.

https://www.dawn.com/news/1712565/hbl-f ... llegations
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Aga Khan Fund inverst Rs 3.47b into HBL

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https://tribune.com.pk/story/2429006/ag ... b-into-hbl

Aga Khan Fund inverst Rs 3.47b into HBL
Marks second buy-back exercise conducted by AKFED in the past three months


Salman Siddiqui August 03, 2023

KARACHI:

The Aga Khan Fund for Economic Development (AKFED), a Switzerland-based organisation holding majority controlling stakes in Habib Bank Limited (HBL), has announced an additional investment of Rs3.47 billion in the bank. This investment will be made through the acquisition of additional shares available for trade at the Pakistan Stock Exchange (PSX).

The Fund is utilising its accumulated dividend income in the country to make this investment, which could not be repatriated to its headquarters abroad due to low foreign exchange reserves in Pakistan. This marks the second buy-back exercise conducted by the Aga Khan Fund in the past three months. Previously, the Fund acquired HBL’s stocks from the retail market (PSX) worth Rs3.53 billion using the same accumulated dividend income.

Stock market investors have responded positively to this new investment decision, causing HBL’s stock to soar by 5.74% to a 14-month high at Rs102.20, with a volume of 18.67 million shares traded at PSX. At the current share price, the majority shareholder could potentially acquire another 2.31% shareholding, equivalent to 33.97 million shares, using the available fund of Rs3.47 billion.

The buy-back trend has been observed among several listed companies at PSX recently, particularly after their share prices declined significantly due to the massive economic slowdown and partial closure of many industrial units. This buy-back approach has been favourable for both company owners and general investors, as share prices are expected to rebound alongside the gradual recovery in economic activities, particularly after Pakistan secured the International Monetary Fund (IMF)’s $3 billion loan programme in June 2023.

According to HBL’s annual report for 2022, AKFED held a 51% stake (748.09 million shares) in the bank in both 2021 and 2022. The shareholding is likely to have increased in 2023 following the first buy-back worth Rs3.53 billion announced in May 2023. In a notification to PSX, HBL’s company secretary stated, “Aga Khan Fund for Economic Development (AKFED) has informed Habib Bank Limited (HBL)…of its intention to acquire additional shares of HBL from the open market by utilising the accumulated dividends that have not been repatriated, amounting to Rs3,472,172,945.”

Regarding the previous buy-back of shares by the Fund, Topline Research commented, “The move comes as the State Bank of Pakistan (SBP) does not allow repatriation of dividends due to the low level of foreign exchange reserves, we think. However, the regulator allows funds to be used within Pakistan to avoid net outflow of US dollars.”

Pakistan’s foreign exchange reserves have improved significantly to a two-month high import cover at $8.2 billion, thanks to the latest inflows from the IMF and friendly countries like Saudi Arabia and the United Arab Emirates (UAE). This is a substantial improvement compared to the less than $3 billion in reserves in the recent past.

While Pakistan has taken measures to strengthen its foreign exchange reserves, foreign investors are yet to be allowed to repatriate profit and dividends to their headquarters. The government has urged foreign investors to reinvest their earnings in the domestic economy to support the country’s economic growth.

Foreign investors had sought clarity from the government on the repatriation of profit and dividend income to their headquarters and proposed various solutions to address the foreign exchange crisis in the country. However, the government’s response on the matter remains unknown.

According to the latest data from the central bank, the overall repatriation of profit and dividends to foreign headquarters by global investors operating in Pakistan slumped by 80% to $331 million in the previous fiscal year ended June 30, 2023, compared to $1.68 billion dispatched in FY22.

Despite the recent economic slowdown, banks operating in Pakistan have continued to register notable growth in their profits, mainly due to significant lending to the cash-strapped government for budgetary support at a historical high interest rate of around 23%.

Furthermore, many banks have earned substantial revenues from the rupee-dollar exchange business as the local currency continues to depreciate against the US dollar amid high demand for the greenback over the past several years.

Published in The Express Tribune, August 3rd, 2023.
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Aga Khan fund intends to acquire additional shares of HBL worth nearly Rs3.5bn

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https://www.brecorder.com/news/40255861 ... rly-rs35bn

Aga Khan fund intends to acquire additional shares of HBL worth nearly Rs3.5bn
BR Web Desk Published August 2, 2023


Habib Bank Limited announced on Wednesday that one of its key sponsors – the Aga Khan Fund for Economic Development (AKFED) – has expressed its intention to purchase additional shares of the bank amounting to nearly Rs3.5 billion from the open market.

The development was shared by HBL in its notice to the Pakistan Stock Exchange (PSX).

“Aga Khan Fund for Economic Development (AKFED) has informed Habib Bank Limited (HBL) vide its letter dated August 2, 2023, of its intention to acquire additional shares of HBL from the open market, by utilizing the accumulated dividends that have not been repatriated, amounting to Rs3,472,172,945,” read the notice.

“The said purchase of HBL shares shall be in accordance with applicable regulatory approvals,” added the notice.

The Aga Khan Fund for Economic Development SA is a Swiss for-profit entity and international development finance institution which invests in countries of East Africa, West Africa, Central Asia, and South Asia.

Back in May, HBL informed its stakeholders that the Aga Khan fund intended to acquire additional shares of the bank worth Rs3,534,747,825 from the open-market.

“This is a part of the ongoing shares buyback trend in the market, sponsors are interested to purchase their own shares amid low valuation in the market,” Sana Tawfik, analyst at Arif Habib Limited told Business Recorder.

The market expert said that the move was expected, and it reflects the confidence of the sponsor on the company.

“Fundamentally speaking, HBL results were also strong,” said Tawfik, while adding that the trend of buybacks would continue across the board.

The share price of HBL, which was around Rs96 earlier in the day, saw a massive jump to trade at Rs102.40 following the announcement in the afternoon, an increase of Rs5.75 or 5.95%.

HBL declared a consolidated profit before tax (PBT) of Rs51.5 billion for the first half of 2023, nearly 50% higher than the same period of the previous year.

The PBT of Rs30 billion for the second quarter of 2023 (April-June) was the highest in HBL’s history based on performance of its core business lines.
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Re: Habib Bank Activities - AKFED

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https://propakistani.pk/2023/08/02/aga- ... 7-billion/

Aga Khan Fund to Acquire Additional Shares of HBL Worth Rs. 3.47 Billion

By ProPK Staff | Published Aug 2, 2023

Habib Bank Limited (HBL) announced on Wednesday that the Aga Khan Fund for Economic Development (AKFED) has expressed its intention to purchase additional shares of the bank amounting to Rs. 3.47 billion from the open market.

In a notice to the Pakistan Stock Exchange (PSX), the bank said AKFED has informed the bank of its intention to acquire additional shares of HBL from the open market, by utilizing the accumulated dividends that have not been repatriated, amounting to Rs. 3.472 billion.

The notice said that the said purchase of HBL shares will be in accordance with applicable regulatory approvals.

It is pertinent to mention here that back in May, HBL announced that its sponsor, the Aga Khan Fund for Economic Development, has shown its interest to buy additional shares in the bank against an investment of Rs. 3.53 billion.

AKFED is a for-profit international development agency that seeks to create economic capacity and opportunity in specific regions of the developing world. Its financial service institutions, some of which date back nearly 70 years, include commercial banks, microfinance banks, insurance companies, and property development and management companies in nine countries, some of which are listed on local stock exchanges.

AKFED operates as a network of affiliates, with more than 90 separate project companies employing over 55,000 people. In 2021, it had group revenues of approximately $4 billion.

HBL declared a consolidated profit after tax (PAT) of Rs. 26.33 billion for the half year ended June 30, 2023, up 117.5 percent YoY as compared to
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