Press Release

JCR-VIS upgrades ratings of Habib Bank Limited to AA+/A-1+

Karachi, July 03, 2007: JCR-VIS Credit Rating Company Limited has upgraded the entity ratings of Habib Bank Limited (HBL) to ‘AA+/A-1+’ (Double A+ / A-One Plus) with a ‘Stable’ outlook.

Ratings derive significant strength from HBL’s strong franchise value and its systemic importance to the local economy as the largest private sector bank, both in terms of deposits held by the bank and the size of branch network. The bank has access to a low cost and diversified deposit base. Post privatization, profitability indicators have improved continuously and with high profit retention, capitalization of the bank stands significantly enhanced by the end of FY2006. The corporate loan book has grown steadily over the last year, though growth in consumer portfolio was below target. Asset quality indicators in this segment require improvement and will be monitored by JCR-VIS.

Over the last few years, there has been considerable focus on upgrading the bank’s risk monitoring and management capabilities. Also, there has been emphasis on improving governance related practices in lieu of which policies & procedures have been strengthened. HBL has also made significant progress in the implementation of a state of the art core banking solution, which will facilitate controls while also enabling the bank to offer improved banking services to its customers.

For further information on this rating announcement, please contact Mr. Safdar Kazi (Ext: 604) or Ms. Sabeen Saleem (Ext: 608) at 5311861-70 (10 lines) or fax to 5311873.



Faheem Ahmad
President & CEO

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2007 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .