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BANKING INDUSTRY OF PAKISTAN

Pakistan has a well-developed banking system, which consists of a wide variety of
institutions ranging from a central bank to commercial banks and to specialized agencies to
cater for special requirements of specific sectors. Major factors like global financial disorder,
economic slowdown and strict monetary policy were on the top but Pakistani bank cater all
these problems. During the year 2012, our countrys trade balance reflects healthy
improvement mainly on account of reduced cost of imports. With the International
Monetary Fund s Stand-By Arrangement (SBA) and a commitment expressed by the global
community to extend monetary aid to Pakistan, the country s foreign exchange reserves
have increased significantly, although the rupee continues to depreciate against the dollar.
Weakening domestic demand, reduced commodity prices and lower government borrowing
from the SBP has also led to a reduction in core inflation. The country s stock exchanges
have managed to regain the investors confidence after dismal look in 2011 and the market
index reflects a positive sentiment. Further, remittance inflows from overseas Pakistanis
have remained strong which provided positive support to the economy. These factors, as
well as several ongoing policy and structural reforms resulted in improvement in Pakistans
international ratings by Moody s from Negative to Stable outlook. Although the potential
economic crisis has been averted and the economy has stabilized, the country s
manufacturing and export activities continue to remain under pressure. Power shortage
remains a fundamental detriment to economic growth for which various short and long-
term measures are being taken by the government. This is a matter of utmost priority as the
rising costs of input needs to be kept under control to compete in the international markets.
The economy is also facing severe pressure due to the ongoing war on terror and the
rehabilitation of Internally Displaced Persons (IDPs).

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Habib Bank AG Zurich
Habib Bank AG Zurich was incorporated in 1967 in Zurich, Switzerland by a renowned family
of bankers in Pakistan (Habib Family) with a paid-up capital of Swiss Francs 2 million. At the
time of formation of HBZ (Habib Bank AG Zurich), the Habib Family also owned Habib Bank
Ltd. (HBL) in Pakistan, HBL is one of the largest commercial banks in Pakistan and ranked
amongst the 200 largest banks in the world. In 1974 with the nationalization of Pakistani
banks, the Habib Family lost the ownership of HBL and was left with only HBZ, which at that
time had very modest operations, with only one branch in Zurich.
Since Mr. H.M. Habib was a regular visitor to the court of His Highness Shaikh Rashid Bin
Saeed Al Maktoum in Dubai, when the banks in Pakistan were nationalized, H.H. Sheikh
Rashid extended an invitation to the Habibs to open a bank in Dubai which they
wholeheartedly accepted. A branch of HBZ was opened on August 6, 1974 in Murshid Bazar
in Dubai. The first account holder of the bank was H.H. Shaikh Rashid Bin Saeed Al
Maktoum.
HBZ, as a foreign bank, now has 8 established branches in the UAE. HBZ has presence in 12
countries through 33 established branches and subsidiaries. The Habib Family has been
associated with the banking industry for over six decades. The bank has a strong tradition,
solid foundation and a history of superior management. It enjoys a rich fund of goodwill
with international banks and the business community, which is associated with the name of
Habib.


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HABIB METROPOLITAN BANK
Habib Metropolitan Bank was incorporated in Pakistan as a Public Limited 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 its 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. In September 1982, the number of Metro bank branches,
offices and subsidiaries surpassed the 200 mark. A year later, Metro bank topped the entire
private domestic bank in total resources with PKR 8.8 billion. The bank continued to
experience steady growth through the years and in September 1989; it increased its
authorized capital stock from PKR 2 billion to PKR 5 billion. The banks total capital funds on
June 30, 2006 stood at PKR 57.3 billion. Its consolidated resources amounted to P588.1
billion as of the same period. As of June 2007 assets reached PKR 669.1 billion ($14.5 billion)
(PKR 46=$1).
HABIB METRO 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 Banks Islamic Banking
Division is fully capable of catering to customers seeking Shariah compliant products.
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.

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HMB VISION:
Based on a 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.
HMB MISSION:
To retain and expand the customer base by providing a competitive, specialized and
personal quality service.
To provide a comprehensive range of commercial, consumer and private banking
services to a broad base of personal and business customers especially from our niche
market.
To support the sound and efficient operations of the bank by regular monitoring and
development of the infrastructure in terms of human resource, IT, procedures and
processes.
To be a well and conservatively managed bank, showing reasonable and controlled
growth, ensuring an adequate return for the shareholders.
To keep risks to a minimum through a clear policy of broad diversification in terms of
geography and product mix by spreading the bank's credit and trade financing activities
over a wide range of customers with emphasis on secured, short-term and self-
liquidating lending.
HMB MOTTO:
Service with Security: The motto is a reflection of the bank's drive towards excellence with
continual emphasis on its conservative management philosophy which is also evident from
the mission statement.
Customer base/key suppliers:
HMB's niche market consists of the trading segment generally banking for their import and
export needs. The bank also has a good client base of local customers and is now moving to
capture high net-worth client base for priority and private banking services. The key
suppliers are our correspondent banks, IT suppliers and consultants, auditors, banking
institutions and relevant vendors.
Customer service:
Since its inception, HMB has focused in distinguishing itself by providing superior services to
its customers. With its roots running deep into the long tradition of banking in Pakistan
since 2006, the Bank has retained its status as a family owned bank, giving priority to
customer satisfaction and its reputation rather than profits.
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Achievements:
These above credit ratings denote,
HMB is one of the top ten banks in Pakistan
A very high credit quality,
A very low expectation of credit risk and
A very strong capacity for timely payment of financial commitments.





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MARKET ANALYSIS
SWOT ANALYSIS
1) STRENGTHS:
Large capital base.
Rank in top 10 bank of Pakistan.
Continuous growth in ROE.
The banks management realizes the necessity of existence of effective internal
controls to ensure smooth operations in the 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 the short term A1+.
The financial statements, prepared by the management of the bank present fairly
the state of affairs.
Loans are given only to known, reputable clients to avoid chances of fraud. Very
low nonperforming loan.

2) WEAKNESSES:
Only valued client is important.
Bad portfolio diversification (54% advances to Textile industry)
Advertisement on electronic media has not been seen.
Declining standards of banking after merger. Inter- organizational conflicts after merger.
Compromises upon polices to keep customers happy.
Old Management. (No creativity)
No further growth in branches.
Majority of shares are owned by the one family.
Low consumer finance.
Less job satisfaction of employees.
Customers facing problem of NADRA verification while opening their accounts because
its process is time consuming.



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3) OPPORTUNITIES:
Scope in Islamic Banking.
To go global fully
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 cautious 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. Profit margin will be good.
The bank being Swiss incorporated, it bank follows dual banking regulation i.e of
Pakistan as well as Switzer-land which attracts foreign investors.
SBP policy to allow Islamic Banking business separately.
Bank introduces Islamic banking in country that attracts large number of people.

4) THREATS:
Adverse impact of Credit Crisis can badly effect on HMB.
Facing a strong competition by its competitors. High reliability on only one market
segment i.e. Textile. (54%)
Inconsistency in government policies.
Increasing competition in the banking sector. Entry of many foreign banks.
Strict policies of the State Bank of Pakistan.
Geopolitical condition of country.

1. Threat of Entry: (Medium)
No restriction from SBP for new banks. SBP gives free hand to enter in this industry
because there is a big scope in this industry. To start a new bank there is a need of large
financial resources in order to compete with existing banks and Government current
interest policy is also a problem for new entrant.
Existing banks have great customer loyalties and they differentiate their services.
New entrants need network of branches and to get favorable location for branches is
also difficult. Existing banks has also advantage of expertise and diversity of their
branches.

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2. Intensity of Rivalry among Existing Competitors:
Degree of difference between products is very low.
Competition in existing firms has very high due to numerous and equally balanced
competitors. Due to entrance of new foreign banks, competition increased.
There are high exit barriers due to high fixed cost, Govt. and social restriction.
Banking industry growth is medium to high due to competition increases day by day.
Some banks have new technology which gave advantage to them.

3. Threat of Substitute Products:
Islamic mode of financing is a substitute for conventional banking system. Habib
Metropolitan bank also start Islamic banking in Karachi and Lahore.

4. Bargaining Power of Buyers:
Giant client bargain highly. Products or services have no high difference. Buyer has full
information about whole banking industry in Pakistan then he/she may give tuff time for
Bargaining. Switching cost is not high from one bank to another; prospective banks charge
low fees for switching. Banking products/services may unimportant to the quality of the
buyers.

5. Bargaining Power of Supplier:
The State Bank of Pakistan control the whole banking industry and National Bank of Pakistan
control the securities etc. They have power given by the Govt. of Pakistan. They control the
cash requirements of the banks and all other banks follow the instructions given by the
SBP.

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ANALYSIS OF ADVANCES PORTFOLIO
Segment 2013:
Textile 54.03%
Exports/Imports 7.21%
Chemical and pharmaceuticals 3.65%
Wholesale and retail trade 2.98%
Electronics and electrical 2.29%
Others 29.84%



54.03%
7.01% 3.65%
2.98%
2.29%
29.84%
Market Share in Advances
Textile
Exports/ Imports
Chemical and Pharmaceuticals
Wholesale and Retail Trade
Electronics and electrical
Others
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RISK ANALYSIS
2012 2011 2010
Non-performing
assets to total loans
and lease
0.53% 0.90% 1.00%
Non-performing
assets to equity
4.08% 5.95% 7.18%
Loss to total loans 0.001% 0.04% 0.09%
Provision to total
loans
0.37% 0.78% 1.00%
Capital adequacy 11.88% 12.50% 10.62%
Total loans to total
deposits
81.30% 74.20% 84.49%

1) Credit Risk:
The HMB strategy is to minimize credit risk through a strong pre-disbursement credit
analysis, approval and risk measurement process added with product, geography and
customer diversification. The Bank, as its strategic preference, provides loans only to strong
parties. Major portion of the Bank credit portfolio is Textile industry (54%) which is highly
profitable business in Pakistan but it may riskier and not a good diversification of portfolio, if
textile industry slump then it will crash the whole bank. The bank has very low rate of Non-
performing loans. The ratios of risks are as under and we can see that they reduce the risk
as per their objective.

2) Market Risk:
Market risk is the possibility that fluctuation in interest rates, foreign exchange or stock
prices will change the market value of financial products leading to a loss. The HMB has
formalized liquidity and market risk management policies which contain action plans to
strengthen the market risk management system.

3) Foreign Exchange Risk:
Foreign Exchange Risk is the probability of loss resulting from adverse movement is
exchange rates. The HMB is not in the business of actively trading and market making
activities but a conservative risk approach and the Banks business strategy to work with
export oriented (Textile) clients gives the ability to meet its foreign exchange needs.

4) Interest Rate Risk:
Interest rate risk is the risk that the value of the financial instrument will fluctuate due to
changes in the market interest rates. The HMBs interest rate exposure is low due to the
short-term nature of the majority of business transactions. Interest rate risk is also
controlled through flexible credit pricing mechanism and variable deposit rates.

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5) Liquidity Risk:
HMB manages the liquidity position on a continuous basis. The Banks liquidity position is
based on self reliance with a wide branch network to expand the Bank deposit base. The
Banks liquidity profile generally consists of short-term, secured assets, in line with the
Banks credit strategy.

ANALYSIS OF CREDIT RATING:
The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term
entity ratings of Habib Metropolitan Bank Ltd. at AA+ (Double A plus) and A1+ (A one
plus) respectively. These ratings denote a very low expectation of credit risk emanating from
a very strong capacity for timely payment of financial commitments. The ratings reflect the
strong position of the bank in its respective niche self-liquidating trade finance to
corporate and SMEs. While consolidating its strength, the management continues to focus
on product innovation, enhanced reach through network expansion, and technology up
gradation for ensuring quality services to its customers, thereby retaining its relative
positioning in the face of intensifying competition within the sector. The bank continues to
maintain outstanding asset quality an outcome of conservative risk appetite as well as
effective risk management. The ratings also take into account the banks association with a
geographically diversified international sponsoring group Habib Bank AG Zurich (HBZ).
About the bank: HMB, commencing operations in 1992, is listed on all bourses of Pakistan.
Subsequent to recent merger, the bank is a 51% owned subsidiary of HBZ, incorporated in
Switzerland. HBZ, with consolidated assets of above US$6bln, has operations in eight
countries directly and through subsidiaries. This provides inherent strength to the bank
given high credibility and standing of HBZ. The Chief Executive of the bank is a former
Governor of the State Bank and also a former president of Habib Bank Limited, one of the
largest banks in the country. A highly professional team of senior executives including the
executive director, who has emerged as the key professional in evolving the banks strategy
as well as its implementation, assists the chief executive. The primary function of PACRA is
to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings
reflect an independent, professional and impartial assessment of the risks associated with a
particular instrument or an entity.PACRAs comprehensive offerings include instrument and
entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings
and real estate grading. PACRAs opinion is not a recommendation to purchase, sell or hold
a security, in as much as it does not comment on the securitys market price or suitability for
a particular investor.


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HABIB METRO OPERATIONS REVIEW
BRANCH BANKING:
Habib Metropolitan Bank or HMB has numerous branches more than one hundred and
eighty branches in Pakistan including cities like in the chart.
Habib Metropolitan Bank established their internet banking in the month of November
2004, Habib Metropolitan HMBs Islamic Banking Division delivers goods and facilities which
are Sharia acquiescent.
Habib metropolitan is your choice, this bank has all the possible services that one bank
should have. Its online banking system is quite beneficial for the people who want to enjoy
portability and power on the world of information technology.
One can go deep through the vision line of the bank and can have an idea that it is a
foundation of trust to be the greatest appreciated economic institution, appreciating
clienteles with excellence, enjoying the devotion of dedicated team, meeting the prospects
of controllers and contributing in social foundations though providing greatest revenues to
stockholders. Customers satisfactory are the result of HMBs quality and clients seems to be
very much satisfied.
Habib Metropolitan Bank Ltd continued to expand its footprint by opening 29 new branches
in the year 2013. In doing so, the Bank enhanced its outreach to 21 new cities that it did not
have physical presence in heretofore. The attainment of this planned initiative takes Habib
Metro's branch count to 212 branches that are spread across 49 cities pan-Pakistan. The
Bank now enjoys a stronghold in industrial belts in the North, and bolsters its trade business
epicenter in the South.
In its inception, Habib Metro closed the third quarter of the year with a declared profit-
before-tax of Rs 4.07 billion. This, in addition to increase in deposit base and advances,
enabled the Bank to further strengthen its financial standing.
SEGMENTS
1) International Trade:
Habib Metropolitan Bank offers full range of Trade Finance products and services to its
customers. Due to its wide network of correspondent banking arrangements with most
reputed international banks, it offers seamless trade services to importers and exporters.
Refinance and other trade related products are also made available to eligible customers.


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GLOBAL TRADE FINANCE FACILITY (GTFP):
Habib Metropolitan Bank Limited is the first bank in Pakistan to join the Global Trade
Finance Programme (GTFP) of International Finance Corporation (IFC). By virtue of our
joining the GTFP, our bank is now listed in a panel of prominent banks in 70 countries.
INTERNATIONAL FINANCE CORPORATION (IFC):
Through this programme, IFC will extend guarantees on our behalf, which will provide us
opportunities to globally expand our trade business by enhancing our presence in the
emerging markets and countries with which we have negligible or no business
TRADE FINANCE FACILITATION PROGRAM (TFFP) OF ASIAN DEVELOPMENT BANK (ADB):
Habib Metropolitan Bank Limited has also joined Trade Finance Facilitation Program (TFFP)
of Asian Development Bank (ADB). ADBs main partners are governments, private sector,
nongovernment organizations, development agencies, community-based organizations and
foundations. Our association with ADBs TFFP program as an issuing bank reflects the level
of understanding and confidence they have in the operational efficiency of our institution.
Documentary Collections
Documentary Credits
Import Letters of Credit
Advising of Export Letters of Credit
Standby Letters of Credit
Foreign Bills Purchased Negotiation/Discounting
Structured Trade Financing
Local Currency Export Refinance Facility through SBP
Foreign Currency Export Financing (FCEF) through SBP
Foreign Currency Loans for International Trade

2) Foreign Remittances:
Global remittance facility available through our extensive correspondent bank network.
Need assistance for remittance of funds to Pakistan









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3) HMB Rent Free Lockers:
Secure
Rent Free Lockers
Refundable security deposit
Available in,
SIZE Security Deposits
SMALL Rs. 20,000
MEDIUM Rs. 35,000
LARGE Rs. 60,000
EXTRA LARGE Rs. 100,000


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PRODUCTS AND SERVICES
1. CONSUMER DIVISION
1. HABIBMETRO Auto Finance:
HABIBMETRO Auto Finance is available up to Rs. 3 Million.
Minimum Down Payment is 15% of the total amount.
Processing Fee is Rs. 4,000/-.
Vehicle to be registered in the name of customer and marked HPA with the Bank.

2. HABIBMETRO Auto Leasing:
HABIBMETRO Auto Leasing is offered to all our Commercial & Corporate Clients.
Minimum down Payment is as low as 10% of the total amount.
Auto lease limit depends on the strength of the Companys financials and credit checks.
A Processing fee is charged at 0.5% of the Lease amount.
The Vehicle is to be registered in the name of the Bank
The Insurance cost to be borne by the customer.

3. HMB Personal Loans:
Clean loans are offered up to Rs. 500,000/- .
A Processing Fee of 1% of the loan amount or Rs. 2,000/- is charged, whichever is
higher.

4. HMB Education Loans:
Financing for Education Loans are available for,
Graduation, Post Graduation, PHD, Diploma courses and Financing for Tuition fee, Books
and materials.
A Markup is charged at concessional rate.
There is No processing fee.
Convenient repayment options are offered.
The Tenor is from 6 to 60 months.

5. POS (Point of Sale) Machine:
Now you can withdraw cash from all HMB branches cash counters easily and without
any delay.
Each HMB branch is now equipped with a POS machine available on their Cash Counters.
No need to issue cash cheques and no need to wait.
Cash can be withdrawn up to Rs. 250,000/- via HMB ACCESS (ATM / Debit card).
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2. Electronic Banking
a. HMB Tele Info Service:
Dial 0800 HABIB / 0800 42242 for info services.
Instant access to the information you need at any time, from anywhere.
Teleinfo is a 24 hour telephone banking service to give you information you need
easily, instantly.
Following services can be accessed 24/7
Account Balance.
Cheques in Clearing.
Indicative Foreign Exchange Rates.
Faxed back account statements.

b. HABIBMETRO GSM Mobile Banking:
HABIBMETRO also introduce mobile banking facility, which would be available on request to
all our existing and new account holders. Account holders who subscribe to this facility
would receive SMS messages on their designated mobile phones for all types of transactions
that they had requested.
c. HABIBMETRO WebInfo Service:
Online Banking
Access your account from your home or office or anywhere in the world.
Login through webinfo username and password.
Login through your HABIBMETRO ACCESS (ATM/Debit Card).
Following services can be accessed 24/7,
Up-to-date Account Balance.
Cheques in Clearing.
Account statement
Indicative Foreign Exchange Rates.

d. HABIBMETRO Access ( ATM / Debit Card ):
HABIBMETRO Debit Cards are FREE, and available to our valued clients at all
HABIBMETRO branches.
Make transactions up to the credit balance available in your account
Withdraw cash through convenient POS terminals at all HABIBMETRO branches
Daily ATM With drawl Limit Rs 30,000/-

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3. Corporate Banking
a. Cash Management Services:
This Service is best suited for Corporate clients with Rs.500 Million and above in local
Sales and collections.
Service involves Bulk collection of cash and cheques from all over Pakistan where
HABIBMETRO branches are available.
Funds are collected and credited to customers accounts (cash/transfer) the same day.
Online Banking supported by the state of the art hPLUS technology.
Customers benefit with outright savings of time & money.
Product is very competitively priced.
Upto date tracking of funds with online reports available through webinfo and teleinfo
services.

b. Short Term and Long Term Finance:
The bank also offers short term working capital financing including under sharia compliant
modes, exports/import financing and long-term finances to Corporate/Commercial
customers as well as SMEs trade & industry. It also extends Agricultural credit; specialized
financing tailored to customers needs and is also a regular member of Syndicated financing
club.
c. E-Salary:
Through this service Salary disbursement to the employees of our valued corporate
customers is done electronically.
The Opening and maintenance of all salary accounts are managed form a central
location.
There are no charges on minimum balance in salary accounts.
The individual Salary accounts are also eligible to apply for HMB Personal & Auto Loans.
All banking services that include Electronic fund transfer (EFT) , Demand Draft (DD) ,
Telegraphic Transfer (TT) are available to e-Salary account holders.
The Minimum monthly salary disbursement per corporate customer is Rs. 1 Million.
Charges per salary Rs. 50/- or minimum of Rs. 5,000/-.
Free ATM / Debit Cards will be issued to all e-salary customers at the time of opening
accounts.
Free Web/Teleinfo services to facilitate balance inquiry and other services 24/7.

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4. OTHER PRODUCTS AND SERVICES
a. HABIBMETRO Privilege 55+ Savings Deposit:
HABIBMETRO now Offer Privilege 55+, a saving account with unique features with best
rates, Extended Life Insurance and bonus profit.
How it Works:
A savings account for 55 years old & above.
Initial Investment Requirement-Rs.25,000/-
Profit will be calculated on average balance maintained in the account during the
month.
Unique Bonus Profit Feature on maintaining certain minimum Balance*
Free Life Insurance up to 65 years, a unique feature available only to HABIBMETRO
privilege 55+ customers.
Free Services:
Online funds transfer within HABIBMETRO ( same / intercity)
Personalized Cheques Book(s)
Statement of Account Half yearly
HABIBMETRO ATM / Debit Card (first card only)
Web info & Tele info services
Utility Bills payment via call center
Mobile top ups via call center

b. Basic Banking Account:
Account Opening with Rs. 1,000/-
No minimum balance required.
Non-remunerative account.
First cheque book of 25 leaves issued free of charge. Additional cheque book(s) at Rs.
100/- per book.
No limit on number of ATM / Deposit transactions.
Two cheque transactions will be allowed free per calendar month. Charge of Rs. 25/- per
cheque will be applied from the third cheque onwards.
Free Services:
ATM / Debit Card
Web Info & Teleinfo
Yearly statement of account
Online Funds Transfer
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c. HMB Current Account:
The minimum amount required to open the account is Rs 5,000/-
Minimum balance to maintain in the account is Rs 1,000/-
This is a checking account with no limit on the number of transactions.
No profit is paid in this account
There are no deduction of Zakat or any levies on this account
Free Services:
Cheque Book(s)
Statement of Account
HMB ATM / Debit Card
Web info & Teleinfo Services
Pay Order

d. HABIBMETRO Izafa Certificates:
Izafa Certificates are issued in multiple(s) of Rs. 10,000/-, 25,000/-, 250,000/- and
2,500,000/-.
HABIBMETRO Izafa certificates are offered as 7 years Deposits Certificate.
Offering attractive Profit rates upto 14.29 % p.a
Investment doubles in Seven years.
Easy Loan Facility.
In cashable any time.
No Penalties.
Your profit grows daily.
Can be linked to any of the regular accounts.

e. HABIBMETRO Multiplier Account:
The minimum amount required to open and maintain the account is Rs. 1 Million.
Profit is accrued on a DAILY product basis and credited to your account monthly.
Accrual of Profit is on balance of Rs. 1 Million and above.
In case balance of Rs. 1 Million not maintained for any day profit will be paid @ 6.00%
p.a. for the month.
Free Services:
Cheque Book(s)
Statement of Account
HABIBMETRO ATM / Debit Card
Pay Order
Webinfo & Teleinfo Services
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f. HABIBMETRO Saving Plus Account:
Eligibility : Individuals Only
Initial Deposit : Rs. 25,000/-
Indicative profit rates
Profit payment basis : Average balance maintained during the month
Profit payment frequency : Quarterly Basis
Free Features:
Cheque Book.
Payment Orders.
Statements of Account.
ATM / Debit Card.
Web Info & Teleinfo.
Online Funds Transfer.
SMS Alert: Balance & Account Debit.
Electronic Funds Transfer within HABIBMETRO.

g. PLS Saving Account (Free Life Insurance):
The minimum amount to open and maintain this account is Rs. 1,000/-.
Profit will be calculated on average balance maintained in the account during the
month.
Free life Insurance cover.
Free insurance is equal to the average six monthly balance in case of death.
The minimum qualifying average balance for Life Insurance is Rs. 15,000/-.
The maximum sum assured is Rs. 1,000,000/- .
Free Services:
Cheque Book(s)
Statement of Account
HABIBMETRO ATM / Debit Card
Webinfo & Teleinfo Services
Pay Order

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h. HABIBMETRO Premium Deposit Scheme:
HABIBMETRO offers investment opportunity for our valued account holders. HABIBMETRO
Premium Deposit Scheme offers profit rates up to 10% per annum. You may deposit your
funds for 1, 3 & 5 years, with quarterly and half yearly profit payment options to suit your
need.
Who can avail this Opportunity:
There are no restrictions as to the eligibility of depositors and the scheme is open for any
investors / account holder.
Indicative Profit Rates:
On a deposit of Rs. 100,000/- the profit will be paid as under.
Tenor Quarterly Profit Half Yearly profit
Rate p.a Rate p.a
1 Year 8.30% 8.40%
3 Year 8.60% 8.70%
5 Year 8.90% 9.00%

Features:
Minimum investment amount is Rs. 25,000/- (Rupees Twenty Five Thousand Only). The
funds can be placed in multiples of Rs. 5,000/- as per customers needs.
Profit will be paid on Quarterly or Half yearly basis as per customer decision at the time
of booking the deposit. Profit will be credited directly to your PLS Savings / Current
account and can be withdrawn by HABIBMETRO Access ATM/Debit Card or Cheque
book.
Upon maturity, principal plus profit payable will be credited to your link account unless
rollover instructions are given at least 3 (Three) working days before maturity.
All payments will be subject to Zakat (as per rules).
The loaning facility offered is essentially of temporary nature and the account holder(s)
can obtain the loan up to 80% of the amount placed in the scheme.

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i. HMB MAKRO Prepaid Cards:
HMB and Makro-Habib Pakistan have together launched a prepaid card program.
Prepaid Gift card:
The Gift card has a fixed value of Rs 1,000 and is a disposable card.
Available at all Makro stores; for purchases over Rs 10,000, please visit nearest HMB
branch in Karachi & Lahore.
Provides well-structured, hassle-free solutions to your home or business for extending
benefits to your employees; these benefits may be part of their monthly wages, payrolls
or periodic bonuses.
Gift card is most ideal to channel your social contributions to the underprivileged by
eliminating the risk of any misuse.
Prepaid Shopping card:
The Shopping Card carries value of Rs 10,000 which can go up to Rs 250,000 in multiples
of Rs 5,000.
This is a multiple-use, reloadable card.
Carries great benefit for your family or business to make daily/periodic purchases with
no risk of cash losses or misuse.

j. HABIBMETRO Super Current Account:
The minimum amount required for opening and maintaining this account is Rs.
100,000/-
This is a current account, which can be operated from any HABIBMETRO branch
nationwide.
Cheques are acceptable at all HABIBMETRO branches across Pakistan.
A non remunerative account.
No deduction of Zakat or any levies on this account.
Profit will be paid on monthly basis and will be credited directly to your PLS Savings /
Current account. Profit can be withdrawn by HABIBMETRO Access ATM/Debit Card or
Cheque book.
Upon maturity, principal plus profit payable will be credited to your link account unless
rollover instructions are given at least 3 (Three) working days before maturity.
All payments will be subject to Zakat (as per rules), withholding tax and other
government levies as applicable from time to time.
The account holder(s) can avail the loan up to 80% of the amount placed in the scheme.


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Free features:
Cheque Book
Payment Orders
Statements of Account
ATM / Debit Card
Web Info & Teleinfo
Online Funds Transfer
Rent free Lockers
Minimum investment amount is Rs. 25,000/- (Rupees Twenty Five Thousand Only).

k. HABIBMETRO Mahana Scheme:
HABIBMETRO offers highly attractive investment opportunity for our Valued account
holders. HABIBMETRO Mahana Scheme offers profit rates up to 9.30% per annum. You may
deposit your funds for 1, 3 & 5 years, with monthly profit payment to suit your need.
Who can avail this Opportunity:
There are no restrictions as to the eligibility of depositors and the scheme is open for any
investors / account holder.
Indicative Profit Rates:
Period Indicative Profit
rates
Investments in multiples of
1 Year 8.10 % p.a.
(Rs. 168.75/- p.m.
on Rs. 25,000/-)
Rs 25,000/- or Rs. 250,000/-
3 Year 8.40 % p.a.
(Rs. 350/- p.m. on
Rs. 50,000/-)
Rs 50,000/- or Rs. 500,000/-
5 Year 8.70 % p.a.
(Rs. 725/- p.m. on
Rs. 100,000/-)
Rs 100,000/- or Rs. 1,000,000/-

Minimum investment amount is Rs. 25,000/- (Rupees Twenty Five Thousand Only).
Profit will be paid on monthly basis and will be credited directly to your PLS Savings /
Current account. Profit can be withdrawn by HABIBMETRO Access ATM/Debit Card or
Cheque book.
Upon maturity, principal plus profit payable will be credited to your link account unless
rollover instructions are given at least 3 (Three) working days before maturity.
All payments will be subject to Zakat (as per rules), withholding tax and other
government levies as applicable from time to time.
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Habib Metropolitan Bank - Islamic Banking Division
Mission:
HMB mission is to provide full range of Shariaah compliant products and services to our
customers with no compromise on Shariaah rulings.

Introduction To Islamic Banking Division:
Habib Metropolitan Bank has developed sufficient expertise, necessary infrastructure,
information technology, and manpower to run Islamic banking operation.
Banking customers who wish to avail Islamic banking products and services are welcome to
contact us to accomplish their banking requirements.
Our Islamic Banking Division is headed by an experienced banker who is responsible for the
overall operational activities of the Islamic Banking Division. The Division has the advisory
services of reputable Shariah advisors who also help in developing Islamic Banking
Products.
Islamic Banking Products
1) Deposits Products:
Islamic Current Deposits Account
Islamic PLS Account
Islamic Investment Certificates
Historical Profit Rates
Local Currency
Foreign Currency
Current Weightages
Local Currency
Foreign Currency

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Financing Products:
Local murabahah for financing raw material for locally manufactured goods and local
murabahah for financing finished goods for local traders.
Local & import murabaha for financing raw material and finished goods for importers
and exporters for trade finance
Ijara (Islamic lease) for financing equipments and machinery consumer and commercial
vehicles
Ijara (Islamic lease) financing for consumer and commercial vehicles
Commercial property financing on diminishing musharakah basis
House financing on diminishing musharakah basis

Shariah Adviser - Profile of Mufti Abdul Sattar Laghari
Mufti Abdul Sattar Laghari holds a Shahada tul A'almiah (Dars e Nizami) and a Master
scholar from Jamia Darul-Uloom, Korangi, and Karachi. He holds Specialization (Takhassus)
in Islamic Fiqh and Fatwa from Darul Ifta wal Irshad Nazimabad 4 Karachi with Master in
Islamic Studies from University of Karachi.
Mufti Laghari also holds a certificate of 1 year correspondence course in Islamic Law from
Shariah Academy International Islamic University Islamabad Pakistan along with certificates
of various courses on Islamic Banking and Finance conducted by Prominent learning Centers
in Pakistan & Malaysia. He was a class topper in Islamic Banking Certificate Course # 20
conducted at NIBAF Karachi.
He has been providing Shariah Advisory services since 2005. He has previously worked as
Shariah Advisor of one of the largest Bank of Pakistan and is part of NBFI & Mudarabah
Association of Pakistan. Mufti Laghari has remained a member of sub committees for review
of some AAOIFI shariah standards at State Bank of Pakistan. He is a master trainer in Islamic
banking and Finance and has conducted extensive courses throughout Pakistan. During his
career he has also issued numerous fatawas on general as well as financial & Islamic Banking
issues.

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Company Profile
Company Registration Number K-03892
(CUIN: 0028018)
Company National Tax Number 0711167-3
Registered Office Ground Floor, Spencer's Building, I. I. Chundrigar Road,
Karachi - 74200, Pakistan
Phone: (92-21) 111-14-14-14
Fax: (92-21) 3263 0404 - 05
Website:
Parent Company Habib Bank AG Zurich (www.habibbank.com)
Subsidiary Company Habib Metropolitan Financial Services (www.hmfs.com.pk)

Board of Directors
Mr. Kassim Parekh Chairman
Mr. Ali S. Habib Director
Mr. Bashir Ali Mohammad Director
Mr. Mohamedali R. Habib Executive Director
Mr. Muhammad Hyder Habib Director
Mr. Tariq Ikram Director
Mr. Sohail Hasan Director
Mr. Syed Zubair Ahmad Shah Director
Mr. Sirajuddin Aziz President & CEO


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Shareholding Pattern
As on December 31, 2012
Particulars Shareholding Percentage
Individuals 135,931,712 12.97%
Investment Companies 2,199,985 0.21%
Joint Stock Companies 6,839,705 0.65%
Directors, Chief Executive
Officer and their spouse
and minor children
26,399,746 2.52%
Executives 2,435,958 0.23%
NIT / ICP 72,247,125 6.89%
Associated Companies,
undertakings and related
parties
536,277,786 51.18%
Banks, DFIs, NBFIs,
Insurance companies,
Modarabas & Mutual Funds
141,170,915 13.47%
Mutual Funds 73,859,157 7.05%
Foreign Investors 111,431,450 10.63%
Co-operative Societies 9,843,073 0.94%
Charitable Trusts 631,619 0.05%
Others 901,034 0.09%
Shares held by 3,018
Shareholders
1,047,831,480 100.00%

Memberships:
International Chamber Of Commerce
Karachi Bankers Club
Management Association of Pakistan
Overseas Investors Chamber of Commerce & Industry
Pakistan Banks' Association
Swiss Business Council
The Institute of Bankers Pakistan

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FUTURE OUTLOOK OF HABIB METROPOLITAN BANK
Up-till now HMBL has not been able to come up with different products in retail banking,
branch banking, insurance, and mortgage. With the presence of large foreign banks like
Citibank, RBS and Standard Chartered one finds it convenient to believe that HMBL faces
tough competition in consumer banking from these worldwide giants. HMBL's net interest
margin is one of the highest in the industry. Interest income is the major the major source of
income for HMBL.

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Conclusion
Major factors like global financing disorder, economic slowdown and strict monetary
policy were on the top but Pakistan bank caters all these problems. HMB is one of the
top ten banks it is expected to play a major role in pioneering these newer markets.
Currently, the banking sector is facing two major problems. The first one is the decline in
credit demand due to slowdown in the economic activities due to poor law and order
situation, power crisis, inflationary pressure, and high interest rates. The other problem
is
The mounting amount of NPLs (non-performing loans). With the exception of a few
banks all the banks are exhibiting considerable rise in NPLs. These two issues are
collectively dampening the banking sector s performance.
HMB offers branch banking,e-banking,consumer banking international banking and also
offers Islamic banking to facilitate their customers.
At year-end, HMB s equity stands at Rs 18.9 billion at a comfortable 11.9% capital
adequacy level against the required 10%.
The credit 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.