Press Release

JCR-VIS Upgrades Entity Ratings of Habib Bank Limited to AAA

Karachi, September 26, 2012: JCR-VIS Credit Rating Company Limited has upgraded the entity ratings of Habib Bank Limited (HBL) to ‘AAA/A-1+’ (Triple A/A-One Plus) from ‘AA+/A-1+’ (Double A Plus/A-One Plus). Outlook on the ratings is ‘Stable’.

HBL has continued to demonstrate sustained growth in a challenging economic environment. HBL’s dominant position in the banking sector is underpinned by its strong access to granular and low-cost deposits, as evidenced by its highest market share in retail and current deposits. The bank operates through the largest domestic branch network; with plans to further expand it in consonance with emerging demographics. More recently, the deposit base of HBL has crossed Rs. 1 trillion.

Healthy growth in profits has allowed the bank to absorb the impact of rising NPLs. While spreads of the bank are expected to witness pressure in the on-going year, in line with the entire banking sector, owing to recent changes in benchmark rates; anticipated growth in balance sheet may mitigate the impact of narrowing margins on profitability to some extent.

Ratings also derive strength from the robust liquidity profile of the bank. Moreover, given the significant deployment in low risk assets and sound pace of internal capital generation, capitalization levels of the bank have strengthened over time and depict resilience.

Change at the helm of the organization is to take effect from October 01, 2012 through a smooth transition process, with Mr. Nauman K. Dar to assume responsibility as the new President. Mr. Dar is a seasoned banker and was previously Head of International & Corporate and Investment Banking at HBL. The key management team at HBL has remained stable and comprises seasoned professionals.

For further information on this rating announcement, please contact the undersigned (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 604) at 35311861-70 (10 lines) or fax to 35311873.



Javed Callea
Advisor

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 2012 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .