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Karachi, Habib Bank Ltd (HBL), Pakistan’s largest bank by assets, is positioning itself strategically in anticipation of potential monetary easing within the year. The bank has maintained a significant portion of its investments in fixed Pakistan Investment Bonds (PIBs), accounting for 37% of its PIBs and 11% of total assets, preparing for possible interest rate reductions. Furthermore, HBL’s foreign currency (FCY) deposits and loan allocations, comprising 20% and 26% respectively, are designed to mitigate the impact of interest rate cuts on its return on equity (ROE).
According to JS Global, during its corporate session, projected the first policy rate cut to occur from April 2024, contingent on the continuation of the current inflation trend. The bank anticipates a substantial reduction in the policy rate, ranging between 400 to 500 basis points throughout CY24, with the majority of the cuts expected in the second half of the year.
The high cost-to-income ratio remains a pressing concern for HBL, marking it as a critical area for improvement. The bank’s management has set a target to decelerate the growth of its operating expenses to 20% year-over-year in CY24, a significant decrease from the average annual growth rate of 33% observed during CY22 and CY23. While the expected monetary easing may limit income growth, JS Global suggests that any enhancement in HBL’s cost-to-income ratio could potentially lead to an upward revaluation of the bank’s financial position.
Karachi, In alignment with International Women’s Day, Bank Alfalah, a premier commercial banking institution in Pakistan, disclosed its “Banking on Equality” trends, underscoring its dedication to advancing women’s financial inclusion. The bank, recognized as one of the ‘Most Inclusive Companies’ in 2023, celebrates its achievements and ongoing commitment to fostering diversity, equity, and inclusion within the financial realm.
According to Bank Alfalah, women now represent 19% of the total account holders, with over 800,000 accounts amounting to PKR 164 billion. In the realm of small and medium enterprise (SME) financing, 542 women entrepreneurs, or 7% of active borrowers, have secured loans totaling PKR 2.7 billion. Additionally, 280 women in the agricultural sector have received financing amounting to PKR 300 million. Under the Prime Minister Youth Business and Agriculture Loan and Small Medium Enterprise Assan Finance (SAAF) Schemes, 132 women have benefited from targeted financing opportunities.
Bank Alfalah has also launched Pehchaan Finance, a personal loan product specially designed for women, offering financial support from PKR 50,000 to PKR 3,000,000 with flexible repayment terms of 1 to 4 years. This initiative aims to provide quick financing solutions, including e-scooty financing, to empower women towards financial independence.
Furthermore, the bank has been a key player in digital social cash transfers, partnering with the Benazir Income Support Programme since 2011 and disbursing PKR 346 million to recipients. Bank Alfalah services 4.4 million female beneficiaries, representing 47% of the total beneficiaries, some of whom are serviced digitally while others through a joint venture partner bank.
In addition to these efforts, Bank Alfalah’s AlfaMall has become a thriving digital marketplace for women entrepreneurs, generating over PKR 382 million in throughput in 2023 alone. The platform has welcomed women from various sectors, including fashion and lifestyle, accounting for 37% of its total customer base. This showcases the bank’s role in supporting women’s economic activities and presence in the digital marketplace.
Mehreen Ahmed, Head of Retail Banking at Bank Alfalah, reflected on the bank’s initiatives, stating, “There is no true empowerment without financial liberation.” She emphasized the bank’s significant contributions towards creating a more inclusive financial environment for women in Pakistan but acknowledged that further efforts are necessary to fully realize the goal of women’s financial inclusion.
The post HBL Prepares for Expected Monetary Easing with Strategic Asset AllocationBank Alfalah Champions Women’s Financial Inclusion on International Women’s Day appeared first on Pakistan Business News.