HBL Islamic Banking Business net assets surged

By Riffat Mughal

KARACHI: Habib Bank Limited (HBL) Islamic banking business and First Habib Bank Modaraba net assets increased by 37.35 percent during nine months of the calendar year 2011 (9MCY11). The net assets of the bank have reached Rs 1,251.246 million as on September 30, 2011 as against to Rs 910.970 million as on December 31, 2011.

Bank’s financing and receivables surged by 18.66 percent to Rs 1,618.378 million. In the total financing and receivables Murabaha portfolio contributed Rs 132.427 million, increased of 156.01 percent. Bank’s Ijarah portfolio reduced by 8.01 percent to Rs 763.230 million during the 9MCY11. Out of total financing and receivables, Ijarah portfolio constituted 47.16 percent, Murabaha contributed 14.21 percent and Musharaka 3.92 percent.

On liabilities side, total deposits and other accounts went up by 62.91 percent to Rs 9,329.105 million as on September 30, 2011 against Rs 5,726.476 million reported on December 31, 2011.

Banks advances to deposits ratio declined to 9.99 percent from 16.77 percent which indicates that bank needs to increase its advances so as to make full use of capital and deposit base.

Islamic Banking is a growing market segment that offers attractive opportunities to potential and existing customers. At HBL, Islamic Banking offers Shariah compliant products and services to meet the short and long term requirements of business, trade and industry.


http://www.halaltamweel.com/2354/PAKISTAN-ISLAMIC-BANKING-ISLAMIC-FINANCE-HBL-NEWS.aspx