Press Release

JCR-VIS Reaffirms Ratings of Habib Bank Limited at AA+/A-1+

Karachi, June 29, 2009: JCR-VIS Credit Rating Company Limited has reaffirmed the entity ratings of Habib Bank Limited (HBL) at ‘AA+/A-1+’ (Double A Plus / A-One Plus). Outlook on the ratings is Stable.

Established in 1947, HBL is the oldest bank in Pakistan. With the largest branch network in the country, HBL enjoys almost 13% market share of domestic deposits, which is the highest amongst private sector banks. Furthermore, the bank retained its favorable deposit mix during FY08 which has consistently been a cost-effective and stable source of funding.

The bank has depicted significant resilience in the prevailing challenging operating environment by virtue of its strong franchise and conservative outlook. The bank has been able to maintain sound liquidity indicators. It has nevertheless been affected by the existing pressures in the economy as reflected in the rising level of delinquencies in the corporate loan book. HBL was a cautious entrant in the consumer segment and the size of this portfolio is small in context of total financing extended by the bank while infection rate also compares favorably to other market participants. For 2008, the bank posted higher profits relative to 2007 as growth in earnings was able to absorb the impact of provisioning charge against NPLs, investments and the increase in administrative expenses.

The increase in size of overseas exposures in the out-going year is mostly a function of rupee depreciation. Overseas operations of the bank span 25 countries with the largest exposure outstanding in UAE at year-end 2008.

For further information on this rating announcement, please contact Ms. Sabeen Saleem (Ext: 510) or Ms. Sobia Maqbool (Ext: 506) 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 2009 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .