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Term Report
On
Financial Management
Banking Industry
“Habib Metropolitan Bank (HMB)”
(Subsidiary of Habib Bank AG Zurich)
Submitted to:
Mr. Sohail Sawani
Course Instructor
Financial Management
Institute of Business Management
Submitted by:
Nur Ali Tejani
Student ID: 2009-1-03-10745
Institute of Business Management
July 31, 2011
LETTER OF AUTHORIZATION
May 15, 2011
Dear Readers
As a student of MBA – Educational Management, our course instructor of
Financial Management Mr. Sohail Sawani authorized me to conduct a term
report at Habib Metropolitan Bank (HMB). I was required to conduct the
research on the selected topic, in accordance with the acquired learning
throughout the semester.
This report is to be conducted to look at the impact of budget 2011-12 on
banking industry in general and HBM in particular along with the Industry
Analysis bases on desired indicators.
The report is required to be submitted on July 31, 2011.
Sincerely
Nur Ali Tejani
MBA - Educational Management (EM)
2009-1-03-10745
Institute of Business Management, Karachi
LETTER OF TRANSMITTAL
May 15, 2011
Mr. Sohail Sawani Rizvi
Course Instructor: Financial Management
Institute of Business Management
Karachi
Subject: Term Report on Financial Management at Habib
Metropolitan Bank
Dear Mr. Sawani
Here is the final research report on the said topic which you had authorized me
to conduct at the beginning of this semester. The report is now ready for your
perusal.
This report is a brief description of the introduction of banking industry and
placement of Habib Metropolitan Bank (HMB). I have covered SWOT analysis of
the Industry that leads to the SWOT analysis of HMB. It also covers in-depth
about the finance department their term of reference, daily routine work which
inform us the flow of work in that particular area. Furthermore, it also discuss
about the impact of budget 2011-12 on banking industry and at HMB. Finally the
industry analysis inform us about the strategic importance of HMB.
The making of this report has been a wonderful learning experience for me as a
part of organization and I thank you to allow me to write report that helps me in
both ways. I have worked diligently to provide you a real and complete picture
that organization allows me to mention. If you have any queries, please call me
on my no. 0333-3266154 I would be glad to respond to your queries.
Sincerely
Nur Ali Tejani
MBA - Educational Management (EM)
Page 3
2009-1-03-10745
Institute of Business Management, Karachi
Page 4
LETTER OF ACKNOWLEDGEMENT
July 31, 2011
Mr. Sohail Sawani
Technical Report Writing Facilitator
Institute of Business Management
Karachi
Dear Reader
It has been a great honor for me to prepare a term report on “Financial
Management – Banking Industry – Habib Metropolitan Bank (HMB)”,
which was assigned to me by my course facilitator of Financial Management, Mr.
Sohail Sawani, without his guidance and support the compilation of the report
would not have been possible.
I also want to express my token of thanks to Mr. Ahmad Pasnani, Assistant Vice
President Finance Division and Muhammad Imran, Assistant Vice President
Finance Division and Company Secretary for providing me the relevant and
current information regarding the prospect of required term report which has
benefited me a lot in compiling my report and making it worthwhile.
Thanking you
Sincerely
Nur Ali Tejani
MBA - Educational Management (EM)
2009-1-03-10745
Institute of Business Management, Karachi.
Page 5
EXECUTIVE SUMMARY
As authorized to me by Mr. Sohail Sawani, on May 01, 2011, this report reveals
the important financial aspect and industry analysis along with the impact of
budget 2011-12 at Habib Metropolitan Bank (HMB).
Section I of the report gives an over view of the current situation of the financial
sector in Pakistan, the changes it has witnessed over the period of last decade.
In this part of the report details of the top ten banking services as per their
assets is provided which is issued by the state bank of Pakistan. The next
section briefs about HBM, its vision, products and services provided to the
consumer. An analysis of the bank is part of this report indicating a detailed list
of strengths such as that ranks in the first ten banks of Pakistan with large
capital assets, however out of many weaknesses one of its weaknesses is that it
does not invest in advertising, similarly it has many features that can be used as
opportunities for growth and last but not the least is a list of challenges that the
bank needs to keep in view so that these can be combated.
The report features the organizational structure and job descriptions of the
finance department. A brief over view is also given of the activities of the finance
department. The report in the end illustrates the impact of the budget 2011 -12
on the banking sector and analyses in depth the implication the budget will have
on HBM finances. The industry analysis in relation then gives rise to a set of
recommendations for the bank that can assist the bank in improvising its
financial status.
Page 6
TABLE OF CONTENTS
LETTER OF AUTHORIZATION.................................................................................................2
LETTER OF TRANSMITTAL......................................................................................................3
LETTER OF ACKNOWLEDGEMENT.......................................................................................4
EXECUTIVE SUMMARY.............................................................................................................5
TABLE OF CONTENTS.......................................................................................................................6
Introduction....................................................................................................................................1
About Habib Metropolitan Bank (HMB)..........................................................................................3
SWOC Analysis................................................................................................................................5
Overview of Finance Department...................................................................................................7
Job Description of Finance Department..........................................................................................8
Daily Activities of Finance Department...........................................................................................9
Impact of Budget FY12 on Banking Industry.................................................................................11
Impact of Budget 2011-12 on Habib Metropolitan Bank (HMB) financials...................................15
Industry Analysis as of March 2011...............................................................................................17
PEER BANK ANALYSIS................................................................................................................17
BIG FIVE BANK ANALYSIS...........................................................................................................21
Recommendation..........................................................................................................................24
References....................................................................................................................................25
Page 7
Introduction
Overview of Financial Sector
A sound and well functioning financial sector is essential to support economic growth of a
country. Pakistan possess a wide range of financial institutions; commercial banks,
specialized banks, national savings schemes, insurance companies, development finance
institutions, investment banks, stock exchanges, corporate brokerage houses, leasing
companies, discount houses, microfinance institutions and Islamic banks. They offer a whole
range of products and services both on the assets and liabilities side.
The current structure of the financial sector in Pakistan is the result of several policy shifts
and developments. Like many other developing countries, Pakistan also undertook the
process of financial restructuring through reforms in early 1990s to establish a more market-
based system of financial intermediation and Government financing, conduct the monetary
policy more efficiently through greater reliance on indirect instruments and increase the
contribution to the rapid development of the stock markets.
During the last few years, financial markets and institutions in Pakistan have witnessed
significant changes in terms of consolidation as well as diversification. Since 2000, more
than 40 transactions of mergers and acquisitions have been executed within banks and
between banks and non-bank finance companies. On the other hand, a number of
banks/development financial institutes as well as their holding groups have expanded their
activities into the areas where the banks hitherto were either not allowed or not interested.
These include insurance, asset management, brokerage, leasing and other non-banking
finance services essentially through separate entities. Along with financial services, various
groups that control different banks have also stakes in non-financial/real sector of economy.
State Bank of Pakistan (the central bank of the country) is the sole supervisory and
regulatory authority of Commercial Banks, Islamic Commercial Bank, Development Financial
Institutions (DFIs), Micro Finance Banks and foreign exchange companies in Pakistan. The
remaining financial institutions are monitored by other authorities, such as the Securities and
Exchange Commission. (Pervez, 25th February 2011)
Page 1
Banking Sector
Today, the Banking sector of Pakistan is playing pivotal role in the growth of country’s
economy. In accordance with the State Bank of Pakistan Act, the banking system of
Pakistan is a two-tier system including the State Bank of Pakistan (SBP), commercial banks,
specialized banks, Development Finance Institutions (DFIs), Microfinance banks and Islamic
banks. As of June 2010, the banking sector comprised 36 commercial banks (including 25
local private banks, 4 public sector commercial banks and 7 foreign banks) and 4 specialized
banks with a total number of 9,087 branches throughout the country. Among the banks,
there are 6 fully fledged Islamic banks as at end of June 2010.
Top ten banks in Pakistan by their size of assets
End December 2009, in thousand Rs.
Ranking Name of Bank Assets1 National Bank of Pakistan 944,232,7622 Habib Bank Limited 820,981,3473 United Bank Limited 619,744,0514 MCB Bank Limited 509,223,0585 Allied Bank Limited 418,374,3316 Bank Alfalah Limited 389,070,0557 Standard Chartered Bank (Pakistan) Limited 312,874,2128 Askari Bank Limited 254,327,4669 Bank Al-Habib Limited 249,806,600
10 Habib Metropolitan Bank Limited 237,412,230Source: State Bank of Pakistan
Page 2
About Habib Metropolitan Bank (HMB)
Vision
Based on foundation of trust, to be the most respected financial institution, delighting
customers with excellence, enjoying the loyalty of a dedicated team, meeting the
expectations of regulators and participating in social causes while providing superior
returns to shareholders
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 (HMB). Demonstrating a strong commitment to Pakistan economy, HBZ is the
principal shareholder of HMB.
HMB 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. HMB 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 HMB’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.
Page 3
The Pakistan Credit Rating Agency (PACRA) has allotted both long-term and short-term
ratings of Habib Metropolitan Bank Limited at “AA+” (Double A plus) and “A1+” (A one plus),
respectively. These ratings, being the highest amongst the local sector Private Banks,
denote a very low expectation of credit risk emanating from a very strong capacity for timely
payment of financial commitments. (About HMB, 2008)
Products
There is a list of comprehensive products at Habib Metropolitan Bank.
Privilege 55+ Savings
HMB Premium Deposit Scheme
HMB Access ( ATM / Debit Card )
HMB Auto Finance
HMB Auto Leasing
HMB Basic Account
HMB Call Account
HMB Curremt Account
HMB Education Loan
HMB Izafa Certificate
HMB Multiplier Account
HMB Mahana Scheme
HMB Personal Loan
HMB Savings Plus Account
PLS Savings Account with Free Life Insurance
Super Current Account
HMB MAKRO Prepaid Cards
Services
Habib Metropolitan Bank offers the following services to their valued custormer.
24 Hours Call Centre (0800-habib)
Cash Management Services
E-Salary
HMB GSM Mobile Banking
HMB Rent Free Lockers
HMB TeleInfo Service
HMB WebInfo Service (www.hmb.com.pk)
POS (Point of Sale) Machine
Page 4
SWOC Analysis Here is the SWOT (Strength, Weaknesses, Opportunity and Challenges) analysis of Habib
Metropolitan bank.
Strength
Large capital base.
Rank in top 10 bank of Pakistan
Continuous growth in ROE
The management’s realizes the necessity of existence of effective internal controls to
ensure smooth operations in current technical and swift business environment.
Loyal management
The bank has efficient and experienced management making significant.
Credit rating in long-term “AA+” and in short term “A1+”.
The financial statement, prepared by the management of the bank present fairly the
state of affairs.
Bank is continuously focusing on developing new and innovative products to attract
their target market.
Strong customer relationship.
Asset utilization is very good.
Non markup income is high in Profit and Loss Account.
Weaknesses
Only valued client is important.
Bad portfolio management (55% advances in textile industry).
No exposure of advertisement to electronic media.
Declining standards of banking after merger. Inter organizational conflicts after
merger.
Compromises upon policies to keep customer happy.
Old management (No room of creativity).
No further growth in branches.
Majority of shares are owned by one family.
Low consumer finance
Less job satisfaction of employees.
Opportunity
Page 5
A good scope in Islamic Banking
More focus on CASA Deposit
There is a room to go in global market.
Low exposure to consumer banking providing opportunity to explore the segment.
The year 2010 will prove to be another demanding year for the bank with scattered
diversification, innovation and mission driven approach are the key to success which
bank should adopt.
Progressive but cautions business expansion with strategic branch network
extension and introduction of innovative products in all areas of business. Branch
network need extension.
Should emphasize much on e-banking.
The bank being Swiss incorporated; it follows dual banking regulations i.e. Pakistan
as well as Switzerland which attract foreign investors.
SBP policy to allow Islamic banking business separately.
Bank introduces Islamic banking in country that attracts large number of people.
Greater profitability can be achieved through strong internal control.
New scheme for deposits and finances should be introduced regularly.
Opportunity to open branch in ruler area and other provinces to increase its branch
network.
Challenges
Adverse impact of “Credit Crisis” can badly effect on HMB.
Facing a strong competition by its competitors and high reliability on only one market
segment i.e. Textile (55%).
Inconsistency in government policies.
Increasing competition in the banking sector. Entry of many foreign banks
Geopolitical condition of country.
Global liquidity crisis has constrained bank to stop lending.
Current economic crunch.
Political instability
Strong competition
Rising deposit rates
Decline in private and public sector credit due to tight monetary policy.
Page 6
Overview of Finance Department
Organization chart / finance division at Habib Metropolitan bank is mentioned below.
Page 7
Job Description of Finance Department
1. Chief Financial Officer (CFO)-Senior Executive Vice President (SEVP)
The CFO will be responsible for strategic level financial analysis and oversight. CFO will be
expected to analyze actual expenses and revenues against the bank business model and
financial projections in order to provide advice and counsel on strategy, operations, or
finances necessary to maintain effective and sustainable operations. The essential duties of
CFO are
Strategic Management of Financial Resources that provide strategic level oversight,
analysis, and proactive problem solving around bank operations against its business
model.
Business Planning and Analysis that collaborate on strategic and business planning
with the CEO and Finance Manager. Provide strategic recommendations to CEO and
management staff on financial issues, including financial analysis and projections,
cost identification and allocations, and revenue and expense analysis.
2. Vice President (VP)
The Vice President (VP) / Assistant Vice President (AVP) will be responsible to head the
department and reports to CFO. The essential duties of VP/AVP are
Prepare key management reports and analysis to inform management and ensure
compliance with all reporting entities, including investors, foundations, and public and
private financial institutions.
CFO (Fuzail Abbas)
VP (Mohammad Imran)
Financial Statement and Taxation
VP (Salman H Siddiqui)State Bank of Pakistan and Group Reporting
AVP (Ahmed Pasnani)MIS, Budget &
Targets adn Industry Analysis
Page 8
Provide strategic oversight to accounting function including cash flow projections and
accurate financial statements.
Workforce name and designation
Mohammad Imran Salman H. Siddiqui Ahmed Pesnani
Vice President Vice President AVP
Ahmed Batavia AVP Ali raza Merchant AVP Naqi raza Khan DM
Mohammad Raza
Somani AVP Zahid Hasmi CM Fareena baig OG II
Mohsin Abrar DM Mohammad Shehzad DM
Saira Maryam OG I Aqib Dadha OG I
Feroz Panthakey OG I Kashif Lodhi OG III
Imtiaz haider OG II Furqan Akhund OG III
Mohammad Khurram OG II Mustufa Vadia J.O
M. Ali Jiwani OG III
Daily Activities of Finance DepartmentFinancial Statement and Taxation
Task Frequency/Details
SBP & Other Regulatory reporting
Daily Weekly Monthly Quarterly Half Yearly
Group Reporting
Monthly Quarterly Half Yearly Basel II Audit
Administrative work
Payments (all)
Donation Expense approval weeklyInsurance of cash & Deposits(including reporting)Insurance claims (including equipments)
IBB Desk
Reporting Weightages Distribution of profit Monthly closing co-ordination with branches
State Bank of Pakistan and Group Reporting
Page 9
MIS, Budget & Targets adn Industry Analysis
Task Frequency/Details
MIS
Daily Position - CE Daily Position (old) MANCOM (weekly & Monthly)Branch managers meetingReporting to MRH, HMH
Budget & Targets
Get data from branches Compilation Scenario analyses Confirmation from Zonal heads
Industry Analysis
Compilation of data, analysis and presentation of key indicators
Task Frequency/DetailsSBP & Other Regulatory reporting
DailyWeeklyMonthlyQuarterlyHalf Yearly
Group Reporting MonthlyQuarterlyHalf YearlyBasel II Audit
Administrative work Payments (all)DonationExpense approval weeklyInsurance of cash & Deposits(including reporting)Insurance claims (including equipments)
IBB Desk ReportingWeightagesDistribution of profitMonthly closingCo-ordination with branches
Page 10
Impact of Budget FY12 on Banking Industry
A. INCOME TAX ORDINANCE, 2001
1. Carry forward of excess provisions of advances for consumer and SMEs clarified;
lower of actual provisions or at prescribed limit to be deductible
[Rule 1(c)] seventh schedule of income tax ordinance, 2001
The amendments introduced in Rule 1(c) through Finance Act, 2009 changed the
mechanism for allowability of ‘provision for advances and off balance sheet items’ and the
admissibility was disconnected from ‘general provisions’ contained in sections 29 and 29A.
These provisions provided allowability upto a maximum of 1 per cent of the total advances
with a condition that actual provision, if in excess of 1 per cent, would be allowed to be
carried over to succeeding years.
Through Finance Act, 2010, an amendment was introduced in this provision and separate
allowability at 5 per cent of total advances to ‘Consumers and Small and Medium
Enterprises (SMEs)’ was prescribed. In view of the fact that no corresponding amendment
was made in that part of the provision which prescribed the amount eligible for carry over,
the tax authorities were interpreting these provisions to restrict carry forward at 1 per cent of
total advances including those to consumers and SMEs.
The Bill proposes to rectify the above explained anomaly with effect from July 1, 2010
confirming thereby that the earlier omission was inadvertent.
Consequently, while provisions for advances and off balance sheet items will be admissible
to the following extent with effect from July 1, 2010, the excess provisions, if any, would
remain eligible for carry over to be deducted against taxable income of succeeding tax
year(s):1
(I) 1 per cent of advances; and
(II) 5 per cent of advances to consumers and SME
1 A.F FERGUSON & CO., Chartered AccountsA member firm of the PwC network
Page 11
2. Dividends received from asset Management Company
[Rule 6] seventh schedule of income tax ordinance, 2001
Presently, dividend income of a banking company is taxed at 10 per cent. It is now proposed
that tax rate on dividend income that is received by a banking company from its asset
management company (AMCs) is increased to 20 per cent.
3. PAYMENT OF ADVANCE TAX ON CAPITAL GAINS FROM SALE OF SECURITIES
[Section 147(5B)] of income tax ordinance, 2001
Adjustable advance tax on capital gains from sale of securities shall now be payable within a
period of twenty one days after the close of each quarter as against a period of seven days
previously prescribed under the Ordinance. Consequently, such advance tax shall have to
be paid out by the following dates:
QUARTER PAYMENT DATE
September October 21
December January 21
March April 21
June July 21
4. WITHHOLDING TAX ON CASH WITHDRAWALS
[Part IV - Division VI] first schedule of income tax ordinance, 2001
The withholding tax rate on cash withdrawals is proposed to be reduced from 0.3 to 0.2 Per
cent of the gross amount of withdrawal. The currently applicable limit of per day cash
withdrawal upto Rs 25,000 remains intact.
B. SINDH SALES TAX ON SERVICES ACT, 2011
Page 12
The Sindh Sales Tax on Services Act, 2011 (Act), which is effective from July 1, 2011,
enables the Sindh Government to charge and collect Sales Tax (ST) on services, which
were previously chargeable to tax under Table II of the First Schedule to the Federal Excise
Act, 2005 (FED Act).
This provision enables the Sindh Government to charge and collect Sales Tax (ST) on
Services provided by banking companies or nonbanking financial companies at 16 Per cent
of the charges.
EXPLANATION:
The banking industry is perceived to be totally “ignored” in the new budget with the latter
inching towards 2005 and 2008-like crashes masterly on the back of daily low volumes that
were unprecedented during the past eight years. Whereas the budget-makers appeared to
have poured cold water on positive expectations of investors at the volumes-starved Karachi
Stock Exchange (KSE) regarding the unpopular Capital Gains Tax (CGT), the cash-strapped
Islamabad has, in the new financial plan, hinted that it would continue to rely on the banking
system for budgetary borrowings during FY12.
The Budget FY12 measures for the banking sector include 0.1 reduction in withholding tax
(WHT) on pay orders, demand drafts, maintenance of the taxation rate on corporate and
investments in the government papers, permission for the banks to carry over of provisioning
in excess of five percent on their loans to consumers and SMEs and 10 percent increase in
tax rate on dividends received by the banks from the Asset Management Companies
(AMCs). According to market observers, the cash-strapped government’s sustained reliance
on local sources for financing 84 percent of its Rs850 billion budget deficit would mean more
dependency on the local bank and non-bank borrowings. That would keep the interest rate
high and resultantly the Net Interest Margin (NIM) would also remain strong.
In FY12 the economic managers would have to play a “balancing game” to meet the
ambitious Rs849 billion, four percent of GDP, fiscal deficit target at one end, while providing
impetus to the economic recovery to achieve the 4.2 percent GDP growth target.
The banks would be seeing their deposit base slightly improving on the back of a reduced
WHT, whereas the carryover of bad-debts in excess of five percent would also prove
“slightly” positive for the banking sector.
Page 13
About 10 percent tax increase on the dividends of AMCs is expected; the analysts said the
move was unlikely to unveil any major impact owing to a nominal size of investment in the
companies. This fiscal measure has apparently been proposed in order to discourage the
practice of arbitrage by banks for receiving dividends from its AMCs.
This means that banks will be investing in funds then they need to hold their investment for
more than one year to minimize their tax liability as the CGT on banks for more than a year
is 10 percent which is less than 20 percent on dividends imposed in this budget.
The Finance Bill FY12 envisages the individual investors to keep paying the long-resented
10 percent tax on their capital gains as well as the banks, insurance companies, mutual
funds and other corporations would also continue to pay the CGT as per their specific rules.
All the new budget means for the CGT-hit corporate sector is a two-week extension in the
deadline for their quarterly filling. No major changes have been made on the turnover tax on
shares trading and taxes on the stock brokers.
Page 14
Impact of Budget 2011-12 on Habib Metropolitan Bank (HMB) financials
1. The Finance Bill clarified the position of carry forward of excess provision of advances
for consumers and SMEs, which enables Habib Metropolitan Bank to carry forward
provision in excess of 5 per cent to succeeding years in order to get maximum benefit.
This means that excess provision of current year will not be lost and can be deductible
from income in succeeding years while computing income tax of the bank. Thus Profit
before tax (PBT) of the succeeding years will be lowered by the excess carry forward
provision which results in lowered tax liability and increase in the Net Profits. This proves
“slightly” positive for the banking sector.
2. Presently, Habib Metropolitan Bank doesn’t have its Asset Management company
therefore the related provision of the law has not affected this bank.
3. The payment of adjustable advance tax on capital gains from sale of securities shall now
be payable within a period of twenty one days after the close of each quarter as against
a period of seven days previously prescribed under the Ordinance. This Provision
relaxes Habib Metropolitan Bank to Pay CGT from sale of securities at the latter date as
mentioned above.
4. After amendment of withholding provision, Habib Metropolitan bank has to withhold tax
at 0.2 Per cent (previously 0.3 Per cent) on cash withdrawals. The currently applicable
limit of per day cash withdrawal is upto Rs 25,000. This doesn’t affect the bank’s
profitability as the bank is the withholding agent and it has to pay the withhold tax to the
government treasury.
The Bill however does not proposes any reduction in rate of tax collection on
transactions in banks covered in section 231AA (e.g. sale against cash any instrument
including Demand Draft, Pay Order, CDR, STDR, SDR, RTC or any other instrument of
bearer nature etc.) which shall continue to be at 0.3 percent.2
2 Budget Brief 2011An Economic and Tax Commentary KPMG Taseer Hadi & Co. Chartered Accounts
Page 15
5. Reference to Sindh sales tax on services act, 2011, the Concerned Bank has to pay
Sales tax on services at 16 Per cent to Sindh government which results in increase in overall
tax liability of the bank which also affects the profitability of the bank. The increase in the tax
liability will decrease the company’s Profit margins.
Page 16
Industry Analysis as of March 2011
PEER BANK ANALYSIS
BALANCE SHEET HIGHLIGHTS
PROFIT & LOSS HIGHLIGHTS
Page 17
DEPOSIT
LOW COST COMPARISION
Page 18
Page 19
CURRENT ACCOUTNS
SECTORWISE ADVANCES % (31 DEC 2010)
Page 20
NON PERFORMING LOANS - NPL’S
Page 21
BIG FIVE BANK ANALYSIS
BALANCE SHEET HIGHLIGHTS
PROFIT & LOSS HIGHLIGHTS
Page 22
DEPOSIT
LOW COST COMPARISION
Page 23
NON PERFORMING LOANS - NPL’S
ISLAMIC BANKS AND CONVENTIAL BANKS HAVING ISLAMIC WINDOW
Page 24
Recommendation
Following are the recommendations which have been placed after analyzing the financials of
Habib Metropolitan Bank Limited.
Diversifying the portfolio
Introducing the new product and service in the market.
Change in Management
Customer perceives value. To give importance to all customer.
Increase the branches all over the country especially in remote area of sindh and other
three provinces.
Focusing to grant loans to agriculture
Improved standard of banking
Page 25
References
About HMB. (2008). Retrieved from Habib Metropolitan Bank: http://www.hmb.com.pk/AboutHMB.htm
Pervez, A. (25th February 2011). Pakistan Banking Sector. Karachi: Business Network Switerland.
A.F FERGUSON & CO., Chartered AccountsA member firm of the PwC network
Budget Brief 2011An Economic and Tax Commentary KPMG Taseer Hadi & Co. Chartered Accounts
Habib Metropolitan BankAnnual Report 2010 & Accounts for the Quarter Ended March 31, 2011 (UN-AUDITED)
Page 26
