Pakistan Banking Industry

Key Trends

Jun-14

Banking Industry | Profile at end Dec-13

Banks
Commercial

Branches
10,726

ATMs
7,684

((YoY: 6%))

((YoY: 23%))

Assets
10.5 trn

Deposits
8.3 trn

Advances
4.5 trn

(YoY: 6%)

(YoY: 14%)

(YoY: 6%)

Commercial with Islamic Branches (14)

Foreign
o e g Bankss ((as branches)) 7
Islamic
5
Specialized
4
Private
Credit
3.3trn
[Includes TFCs]
(YoY: 6%)
[Direct Credit: 2.7trn]

Borrower
Accounts
3.3mln
[[CY12: 3.7mln]]

Deposit
Accounts
37mln
[CY12: 34mln]

38
22

Equity
939 bln
(YoY:6%)

Government
Deposits :732bln [10% of Industry]
Advances : 407bln [10% of Industry]
* Amounts in PKR

Players | How old are they?

2014

2014
Since

Age (yrs)

Since

Age (yrs)

Oldies > 45Years

Habib Bank Ltd.

Allied Bank Ltd.
MCB Bank Ltd.
Ltd

1941
1942
1947

73
72
67

National Bank of Pakistan

1949

65

United Bank Ltd.

1959

55

Fi W
First
Women Bank
B k Ltd.
Ld

1989

25

The Bank of Punjab

1989

25

Askari Bank Ltd.

1991

23

Bank AL Habib Ltd.

1991

23

Standard
S
d d Ch
Chartered
dB
Bank
k (P
(Pakistan)
ki
)
Ltd.
The Bank of Khyber

1991

23

1991

23

Habib Metropolitan Bank Ltd.

1992

22

Soneri Bank Ltd.

1992

22

Faysal Bank Ltd.

1994

20

KASB Bank Ltd.

1994

20

* Excludes specialized banks and foreign bank branches

Silk Bank Ltd

1994

20

* Source: Banks' www and/or Annual reports

Young >20 years

Teens <18 years

Bank Alfalah Ltd.

1997

17

Meezan Bank Ltd.

2002

12

NIB Bank Ltd.

2003

11

SAMBA Bank Ltd.

2003

11

Summit Bank Ltd

2005

BankIslami Pakistan Ltd.

2006

Burj Bank Ltd.

2006

Dubai Islamic Bank Pakistan Ltd.

2006

JS Bank Ltd.

2006

AlBaraka Bank (Pakistan) Ltd..

2007

Sindh Bank Ltd.

2010

Average Life of industry players

25

Indutsry | CEOs | New Appointments

Current President / CEO

Appointment
yyear

Previous President holding Office

1
2
3
4
5
6

1
2
3
4
5
6

Faysal Bank Ltd.

First Women Bank Ltd.
National Bank of Pakistan
Standard Chartered Bank (Pakistan) Ltd.
The Bank of Khyber
U it d Bank
United
B k Ltd.
Ltd

Nauman Ansari
Tahira Raza
Syed Ahmed Iqbal Ashraf
Najam Siddiqui (A)
Imran Samad (A)
W j h t Husain
Wajahat
H i

2014
2014
2014
2014
2014
2014

Naved Abid Khan

Charmaine Hidayatullah (A) / Shafqat Sultana
Asif Brohi
Ibrahim Elgibali / Mohsin Nathani
Bilal Mustafa
Atif Bokhari
B kh i

7
8
9
10
11

1
2
3
4
5

Allied Bank Ltd.

Askari Bank Ltd.
JS Bank Ltd.
KASB Bank Ltd.
SAMBA Bank Ltd
Ltd.

Tariq Mehmood
Syed Majeedullah Husaini
Khalid Imran
Bilal Mustafa
Shahid Sattar

2013
2013
2013
2013
2013

Khalid Sherwani
Muhammad Rafiquddin Mehkari
Kalim-ur-Rahman
Syed Majeedullah Husaini (A)
Tawfiq Husain

12 1 Habib Bank Ltd.

13 2 MCB Bank Ltd.

Nauman Dar
Imran Maqbool

2012
2012

Zakir Mahmood
Atif Aslam Bajwa

14
15
16
17
18
19

Shafqaat Ahmed
Atif Aslam Bajwa
Ahmed Khizer Khan
Sirajuddin Aziz
Badar Kazmi
Mohammad Aftab Manzoor

2011
2011
2011
2011
2011
2011

Syed Tariq Husain

Sirajuddin Aziz
Nikolaus Schwarz
Anjum Iqbal
Khawaja Iqbal Hassan
Atif Aslam Bajwa / Safar Ali Lakhani

20 1 Dubai Islamic Bank Pakistan Ltd.

21 2 Sindh Bank Ltd.

Junaid Ahmed
Mohammad Bilal Sheikh

2010
2010

Muhammad Mannan
-

22 1 Summit Bank Ltd

Husain Lawai

2009

Kamal Uddin Khan

23 1 Silk Bank Ltd

24 2 The Bank of Punjab

Azmat Tarin
Naeemuddin Khan

2008
2008

Shaukat Tarin
Hamesh Khan

25 1 BankIslami
B kI l i Pakistan
P ki t Ltd.
Ltd
26 2 Meezan Bank Ltd.

Hasan A Bilgrami
Irfan Siddiqui

2006
2002

27 1 Bank AL Habib Ltd.

Abbas Dawood Habib

1994

Rashid Dawood Habib

1
2
3
4
5
6

AlBaraka Bank (Pakistan) Ltd..

Bank Alfalah Ltd.
Burj Bank Ltd.
Habib Metropolitan Bank Ltd.
NIB Bank Ltd.
Soneri Bank Ltd.

Bank Branch Network

Additions in Branch Network

CY12

New
additions

% of
overall
network

CY13

Large (System share > 5%)

Habib Bank
National Bank of Pakistan.
United Bank Ltd.
MCB Bank Ltd.
Allied Bank Ltd.
Bank Al Falah Ltd.
Bank Al Habib Ltd.
[Large Banks: Assets System Share: [64%]

1,496
1,317
1,277
1,202
873
471
392
7,028

50
25
5
15
75
103
27
300

1,546
1,342
1,282
1,217
948
574
419
7,328

13.6%
11.8%
11.3%
10.7%
8.3%
5.1%
3.7%
64.5%

130
261
265
306
183
1,145

(14)
20
4
28
31
69

116
281
269
334
214
1,214

1.0%
2.5%
2.4%
2.9%
1.9%
10.7%

179
233
186
185
77
85
105
41
28
160
1,279

6
1
26
23
3
(3)
50
106

179
239
187
211
100
88
102
41
28
210
1,385

1.6%
2.1%
1.6%
1.9%
0.9%
0.8%
0.9%
0.4%
0.2%
1.8%
12.2%

310
75
141
94
75
695

41
50
59
16
166

351
125
200
110
75
861

3.1%
1.1%
1.8%
1.0%
0.7%
7.6%

10,712

651

11,363

BAFL and ABL lead with

100+ and 75 additional
branches respectively

Medium (System share between 2% to 5%)

Standard Chartered Bank (Pakistan) Ltd

Askari Bank Ltd.
Faysal Bank Ltd.
The Bank of Punjab.
Habib Metropolitan Bank Ltd.
Medium Banks: Assets System Share: [17%]

Small (System share <2%)

NIB Bank Ltd.

Soneri Bank Ltd.
Summit Bank Ltd
JS Bank Ltd.
The Bank of Khyber.
Silkbank Ltd.
KASB Bank Ltd.
First Women Bank Ltd.
Samba Bank Ltd.
Sindh Bank Limited
Small Banks: Assets System Share: [5%]

Islamic Banks

Meezan Bank Ltd

Dubai Islamic Bank Pakistan Ltd
Bank Islami Pakistan Ltd
Al Baraka Bank (Pakistan) Ltd
Burj Bank Ltd
Islamic Banks: Assets System Share: [6%]

Industry Total*
*Includes Foreign Bank branches and specialized Banks

Growth:
5.5%

Barring JSBL and BoK the

network of small banks
largely remains stagnated.

Islamic
Banks
remain
bullish in terms of branch
expansion : 19% during
CY13

Share Price of Banks | 6th May 2014

0

10

50

100

150

200

MCB B
Bank
k
180

United Bank Limited

171

Allied Bank Limited

125

NBP

58
42

Bank Alhabib
Meezan Bank

40

Habib Metro Bank

31

Bank ALFalah

27

Standard Chartered

24

Askari Bank Limited

19

Faysal Bank

16

Soneri Bank

14

Bank Islami Pakistan

11

Bank of Punjab

10

8 Samba Bank
6 JS Bank

4 Summit Bank
4
3

Silk

3 NIB Bank

2 KASB Bank
2

300
280

Habib Bank Limited

9 Bank of Khyber

250

Price to Earning Multiple| Banks (Based on CY13 earnings)

(10)

(5)

9xs 10

15

20

25

Samba Bank

25.6

NIB Bank

20.3

Silk

19.6

Bank Islami Pakistan

18.0

MCB Bank

14.5
13.0

Soneri Bank
JS Bank

11.8

Allied Bank Limited

11.3

Habib Bank Limited

11.0

Standard Chartered

10.7

Faysal Bank

10.0

NBP

10.0

United Bank Limited

8.9 Bank Alhabib
8.9 Meezan Bank
8 2 Bank ALFalah
8.2
8.2 Bank of Khyber
8.2 Habib Metro Bank
6.1 Bank of Punjab
5.8 Askari Bank Limited
(3.7)
(6.1)

Summit Bank
KASB Bank

30

9.9

KSE : P/E
9xs

One Year Stock Returns | Banks | CY13

-40%

-20%

0%

20%

40%

49.4% 60%

Standard Chartered

100%

120%

100%

Bank ALFalah

61%

United Bank Limited

58%

Samba Bank

58%

S
Soneri
i Bank
B k

80%

54%

41%Habib Bank Limited

34%

MCB Bank

33% Habib Metro Bank

22%
18%
7%
5%
3%
-8%
-11%
-19%
-21%
21%
-23%
-25%
-28%

31%

Meezan Bank

31%

Bank Alhabib

Allied Bank Limited

NBP
Faysal Bank
Bank of Khyber
Bank of Punjab
Silk
NIB Bank
Askari Bank Limited
KASB Bank
JS Bank
Bank Islami Pakistan
Summit Bank

One year KSE100 Return

: 49.4%
49 4%

Year till date Stock Returns | Banks vs KSE-100 | Jan-14 till May14
-20%

0%

12.3%

20%

40%

60%

80%

Summit Bank

95%

Samba Bank

75%

Bank Islami Pakistan

47%

Allied Bank Limited

39%

F
Faysal
l Bank
B k

39%

Askari Bank Limited

36%

Soneri Bank

32%

United Bank Limited

29%

JS Bank
23%

Habib Metro Bank

23%

HBL
10%
8% NIB
4%KASB Bank
2% Bank Alhabib
2% Meezan Bank
-1%

-5%
-8%

28%

Silk

B k off Kh
Bank
Khyber
b

NBP

-2%
2%

MCB Bank

-2%

Bank ALFalah

Standard Chartered
Bank of Punjab

100%

14%

KSE100
Return : 12.3%

Industry penetration as % GDP

30,000

60%

25,402
25,000

50%

22,909
20,091
18,285

PK
KR in bln

20,000

13,200

15,000

9,240
10,000

40%

14,867
30%

10,638

8,216

20%

5 000
5,000

10%

0%
2006

2007

GDP | FY

GDP | FY | bl
G
bln
Deposits%GDP
Advances%GDP

2006
8 216
8,216
40%
31%

2008

Assets

2007
9 240
9,240
42%
31%

2009

Deposits%GDP

2008
10 638
10,638
40%
32%

2009
13 200
13,200
36%
27%

2010

2011

Advances%GDP

2010
14 86
14,867
37%
25%

2011
18 28
18,285
34%
21%

2012

2013

Deposits

2012
20 091
20,091
36%
21%

1Q14
Advances

2013
22 909
22,909
36%
20%

1Q14
2 402
25,402
36%
20%

-10%

CY08
-15%

CY09
CY10
CY11
CY12
CY13

Investmen
nt

-2% -3%

-20%
1QCY14

Dep osiits

Advance
es

1%

Assetts

Dep osiits

8% 7%

Advance
es

Investmen
nt

6%

Assetts

17%

Dep osiits

9%

Advance
es

15% 15%

Investmen
nt

22%

Assetts

20%

Dep osiits

Advance
es

Investmen
nt

Assetts

13% 14%

Dep osiits

Advance
es

Investmen
nt

9% 9%

Assetts

Dep osiits

Dep osiits

Advance
es

Investmen
nt

10%

Assetts

12%

Dep osiits

Advance
es

Investmen
nt

60%

Growth Trends

53%

50%
42%

40%
31%

30%
24%

19%
17%
14%

11%
8%

6%
2%

0%

PKR in bln
Total Assets
Investments (net)
p
Deposits
Equity
Gross Advances

CY06
4,353
833
3,255
,
402
2,604

CY07
5,172
1,276
3,854
,
544
2,906

CY08
5,628
1,087
4,218
,
563
3,532

CY09
6,516
1,737
4,786
,
660
3,686

CY10
7,117
2,157
5,451
,
695
3,914

CY11
8,171
3,055
6,244
,
784
3,941

CY12
9,761
4,009
7,301
,
882
4,375

CY13
10,537
4,305
8,318
,
939
4,632

Growth %
Total Assets
Investments (Net)
Deposits
Gross Advances

CY06
19%
4%
15%
20%

CY07
19%
53%
18%
12%

CY08
9%
-15%
9%
22%

CY09
16%
60%
13%
4%

CY10
9%
24%
14%
6%

CY11
15%
42%
15%
1%

CY12
19%
31%
17%
11%

Dec-13
8%
7%
14%
6%

2Q and 4Q : are seen as

happening quarters for banking
industry

PKR in bln
Total Assets
Investments (net)
Deposits
Equity
Gross Advances

Mar-13
9,735
4 160
4,160
7,236
864
4,344

Jun-13
10,090
4 253
4,253
7,756
901
4,343

Sep-13
9,759
4 029
4,029
7,698
903
4,352

QoQ
Q
Q Growth%
Total Assets
Investments (Net)
Deposits
Gross Advances

Mar-13
-0.3%
3.8%
-0.9%
-0.7%

Jun-13
Sep-13
p
3.7%
-3.3%
2.2%
-5.3%
7.2%
-0.7%
0.0%
0.2%

Dec-13
10,537
4 305
4,305
8,318
939
4,632

Mar-14
10,752
4 662
4,662
8,151
956
4,483

Dec-13
8.0%
6.9%
8.1%
6.4%

Mar-14
2.0%
8.3%
-2.0%
-3.2%

Incremental Growth | Funding & Deployment

YOY Growth in Total Assets

CY12

CY13

1QCY14
QoQ

19%

8%

2%

Incremental Growth
PKR in bln

ASSETS
I
Investments
Advances
Cash and Placements
Others

1,554
954
440
110
49

776
296
306
133
41

215
356
(23)
(106)
(12)

LIABILITIES & EQUITY

Depsoits
Borrowing from FIs
Sub odinated debt
Others
Equity

1,554
1,063
355
(3)
41
98

776
1,017
(312)
(15)
29
57

215
(167)
282
2
80
18

Large Banks (System Share: Total Assets >5% of Total banking

Insudtry)
Total Assets (PKR in mln)

1
2
3
4
5
6
7

Habib bank
National Bank
U it d Bank
United
B k
MCB
Allied
Bank AlFalah
Bak Alhabib

Dec-12
1,610,474
1,309,528
896 535
896,535
767,075
633,706
536,568
453,106
6,206,991

16.6%
13.5%
9 2%
9.2%
7.9%
6.5%
5.5%
4.7%
63.9%

Dec-13
1,715,271
1,364,341
1 009 761
1,009,761
815,508
734,196
610,614
460,727
6,710,419

16.3%
12.9%
9 6%
9.6%
7.7%
7.0%
5.8%
4.4%
63.7%

Total Assets (PKR in mln) | Growth compared to preceeding Year end

1
2
3
4
5
6
7

Large
Habib bank
National Bank
United Bank
MCB
Allied
Bank AlFalah
Bak Alhabib

1
2
3
4
5

Medium
Standard Chartered
Askari
Faysal
The Bank of Punjab
Habib Metro

1
2
3
4
5

Standard Chartered
Askari
Faysal
The Bank of Punjab
Habib Metro

Dec-12
388,872
353,025
313,123
332,111
304 416
304,416
1,691,548

4.0%
3.6%
3.2%
3.4%
3 1%
3.1%
17.4%

Dec-13
399,438
394,827
355,280
352,698
311 454
311,454
1,813,698

3.8%
3.7%
3.4%
3.3%
3 0%
3.0%
17.2%

1
2
3
4
5
6
7
8
9
10

Small
NIB
Soneri
Summit
JS
The Bank of Khyber
Silk
Sindh
KASB
SAMBA
First Women

16.6%
13.5%
9.2%
7 9%
7.9%
6.5%
5.5%
4.7%
63.9%

Dec-13
1,715,271
1,364,341
1,009,761
815 508
815,508
734,196
610,614
460,727
6,710,419

6.5%
4.2%
12.6%
6 3%
6.3%
15.9%
13.8%
1.7%
8.1%

Total Assets (PKR in mln) | Growth compared to preceeding Year end

Medium Banks ((System

y
Share: Total Assets >2% and <5% of Total
banking Insudtry)
Total Assets (PKR in mln)

Dec-12
1,610,474
1,309,528
896,535
767 075
767,075
633,706
536,568
453,106
6,206,991

Dec-12
388,872
353,025
313,123
332,111
304,416
1,691,548

4.0%
3.6%
3.2%
3.4%
3.1%
17.4%

Dec-13
399,438
394,827
355,280
352,698
311,454
1,813,698

2.7%
11.8%
13.5%
6.2%
2.3%
7.2%

Dec-13
176,825
169,234
125,500
116,823
108,170
91,800
75,032
68,906
40,002
20,761
521,495

-7.2%
6.7%
-6.5%
3.6%
31.6%
3.1%
-18.7%
-22.0%
14.8%
-7.8%
-0.1%

Total Assets (PKR in mln)

Small Banks (System Share: Total Assets <2% of Total banking

Insudtry)
Total Assets (PKR in mln)

1
2
3
4
5
6
7
8
9
10

NIB
Soneri
Summit
JS
The Bank of Khyber
Silk
Sindh
KASB
SAMBA
First Women

Dec-12
190,609
190
609
158,629
134,289
112,770
82,178
89,080
92,291
88,313
34 854
34,854
22,506
521,992

22.0%
0%
1.6%
1.4%
1.2%
0.8%
0.9%
1.0%
0.9%
0 4%
0.4%
0.2%
5.4%

Dec-13
176,825
176
825
169,234
125,500
116,823
108,170
91,800
75,032
68,906
40 002
40,002
20,761
521,495

1 7%
1.7%
1.6%
1.2%
1.1%
1.0%
0.9%
0.7%
0.7%
0 4%
0.4%
0.2%
4.9%

Total Assets (PKR in mln)

Total Assets (PKR in mln)

1
2
3
4
5

Meezan
AlBaraka
BankIslami
Dubai Islamic
Burj

Industry Size (Total

247,437
73,867
74,249
63,510
47,185
506,247
9,711,154

Dec-12

Dec-13
2.5%
0.8%
0.8%
0.7%
0.5%
5.2%

2.0%
1.6%
1.4%
1.2%
0.8%
0.9%
1.0%
0.9%
0.4%
0.2%
5.4%

Islamic Banks

Islamic Banks
Dec-12

Dec-12
190,609
158,629
134,289
112,770
82,178
89,080
92,291
88,313
34,854
22,506
521,992

329,725
87,759
86,856
80,257
53,389
637,985
10,536,989

3.1%
0.8%
0.8%
0.8%
0.5%
6.1%

1
2
3
4
5

Meezan
M
AlBaraka
BankIslami
Dubai Islamic
Burj

247,437
247
437
73,867
74,249
63,510
47,185
506,247

Dec-13
22.5%
5%
0.8%
0.8%
0.7%
0.5%
5.2%

329,725
329
725
87,759
86,856
80,257
53,389
637,985

33.3%
33
3%
18.8%
17.0%
26.4%
13.1%
26.0%

Banks Ratings (As of 07-May-14)

Large Banks (sorted in terms of System Share)
1
2
3
4
5
6
7

Habib Bank Ltd.

National Bank of Pakistan
United Bank Ltd.
MCB Bank Ltd.
Allied Bank Ltd.
Bank Alfalah Ltd.
Bank AL Habib Ltd.

Dec-13
16.3%
12.9%
9.6%
7.7%
7.0%
5.8%
4.4%
63.7%

LT Rating
AAA
AAA
AA+
AAA
AA+
AA
AA+

Medium Banks (sorted in terms of System Share)

1
2
3
4
5

Standard Chartered Bank (Pakistan) Ltd.

Askari Bank Ltd.
Faysal Bank Ltd.
The Bank of Punjab
j
Habib Metropolitan Bank Ltd.

Dec-13
3.8%
3.7%
3.4%
3.3%
3.0%
17.2%

LT Rating
AAA
AAAA
AAAA+

Small Banks (sorted in terms of System Share)

1
2
3
4
5
6
7
8
9
10

NIB Bank Ltd.

S
Soneri
iB
Bank
k Ltd
Ltd.
Summit Bank Ltd
JS Bank Ltd.
The Bank of Khyber
Silk Bank Ltd
Sindh Bank Ltd.
KASB Bank Ltd.
SAMBA Bank Ltd.
Ltd
First Women Bank Ltd.

Dec-13
1.7%
1 6%
1.6%
1.2%
1.1%
1.0%
0.9%
0.7%
0.7%
0 4%
0.4%
0.2%
4.9%

LT Rating
AAAA
AAA- [RW]
A+
A
AAABBB
AA
AAA-

Islamic Banks (sorted in terms of System Share)

Dec-13
1
2
3
4
5

M
Meezan
B
Bank
k Ltd
Ltd.
AlBaraka Bank (Pakistan) Ltd..
BankIslami Pakistan Ltd.
Dubai Islamic Bank Pakistan Ltd.
Burj Bank Ltd.

3.1%
3
1%
0.8%
0.8%
0.8%
0.5%
6.1%

* All Ratings carry Stable outlook except Summit which is under RW Developing

LT Rating
AA
A
A
A
A

Industry ADR and IDR

PKR in bln

Advances and Investments to Deposits Ratio | Industry Trend

9,000

81%

8,000

72%

7,000

63%

6,000

54%

5,000

45%

4,000

36%

3 000
3,000

27%

2,000

18%

1,000

9%

CY06

CY07

CY08

CY09

CY10

CY11

CY12

CY13

1QCY14

Deposits

3,255

3,854

4,218

4,786

5,451

6,244

7,301

8,318

8,151

Advances (net)

2,428

2,688

3,173

3,240

3,358

3,349

3,760

4,047

4,014

Investments (net)

833

1,276

1,087

1,737

2,157

3,055

4,009

4,305

4,662

Investments % Deposits

26%

33%

26%

36%

40%

49%

55%

52%

57%

Advances % Deposits

75%

70%

75%

68%

62%

54%

52%

49%

49%

0%

Industry | Advances Composition

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Dec-10

Dec-11

Dec-12

Dec-13

Mar-14

Others (incl. Staff Loans)

4%

4%

5%

5%

5%

Agriculture Sector

5%

5%

5%

5%

5%

SMEs Sector

9%

8%

7%

6%

6%

Consumer sector

7%

6%

6%

6%

6%

Commodity financing

12%

12%

12%

11%

10%

Corporate Sector

63%

65%

66%

67%

68%

Industry after having a bad experience in SMEs (Infection ratio as high as 43% in Sep-12) is focusing on corporate segment

Sector wise Advances Composition

Sectors

% of Total

PKR in mln
1QCY14

Others
Textile
Production/Transmission of Energy
Individuals
Agribusiness
Chemical & Pharmaceuticals
Financial
Sugar
Automobile/Transportation
Electronics
Cement
Shoes & Leather garments
Insurance
Total

17.1%
17
1%
12.4%
9.0%
7.5%
3.6%
2.3%
3.9%
1.4%
1.5%
1.1%
0.6%
0.0%

1,780,573
767 054
767,054
554,432
401,785
335,485
159,245
,
105,125
175,431
62,062
67,461
48,803
25,008
225
4,482,690

GGross Ad
Advances
% of Total PKR in mln
CY13
1,917,127
17 3%
17.3%
778 868
778,868
10.9%
493,122
8.5%
383,162
7.6%
340,342
3.3%
150,256
,
2.7%
121,013
2.7%
120,274
1.3%
60,794
1.3%
58,877
1.2%
54,679
0.6%
26,628
0.0%
354
4,505,495

% of Total

PKR in mln
CY12
1,783,342
16 7%
16.7%
699 342
699,342
11.7%
492,814
7.9%
333,309
8.4%
354,343
3.6%
150,101
,
1.9%
81,725
2.5%
105,558
1.3%
56,329
1.4%
57,003
1.4%
58,351
0.6%
23,742
0.0%
340
4,196,299

Commentary: Textile remained the largest credit exposure of the industry. While
there was an increase in %share of textile sector, absolute exposure increased by close
to PKR 80bln. Personal loans, lending to Financial sector and sugar business
i
increased
d during
d i CY13.
CY13

Sector wise Advances Composition and Asset Quality

Sectors

Others
Textile
Individuals
Financial
Sugar
Automobile/Transportation
Shoes & Leather garments
Electronics
Production/Transmission of Energy
Chemical & Pharmaceuticals
Insurance
Cement
A ib i
Agribusiness
Total

Absolute Growth
PKR in mln
CY13
CY12
133,784
122,885
79,526
42,256
49,853
(7,188)
39,288
2,602
14,717
(22,768)
4,465
19,048
2,886
(168)
1 874
1,874
21 536
21,536
308
3,202
155
11,193
13
(3,344)
(3,673)
(2,873)
(14 001)
(14,001)
263 769
263,769
309,196
450,150

Infection Ratio
PKR in mln
CY13

CY12
10.7%
26.2%
12.3%
6.8%
5.2%
17.2%
11.3%
41 3%
41.3%
3.0%
8.9%
0.2%
25.3%
10 2%
10.2%
13.0%

Commentary: During CY13 the industry saw a significant improvement in

asset quality of Textile, Individuals, financial, sugar, and auto sector (In
percentage terms)

11.5%
29.6%
16.2%
10.5%
10.3%
19.8%
12.8%
41 9%
41.9%
3.7%
9.9%
13.0%
29.3%
9 1%
9.1%
14.5%

PK
KR in bln

Industry | Credit Risk | Asset Quality

700

21%

600

18%

500

15%

400

12%

300

9%

200

6%

100

3%

CY06

CY07

CY08

CY09

CY10

CY11

CY12

CY13

1QCY14

NPLs

177

218

359

446

556

592

615

585

602

Provision

138

188

250

312

371

410

439

459

468

Infection ratio %

7%

8%

10%

13%

15%

16%

14%

13%

13%

0%

Commentary: We should be happy to see industry infection ratio dropping for recent three years.
years
However, in terms of absolute money we can see CY13 as the first year where absolute NPLs
have decreased.

Weighted average Lending & Deposit Rates | Oustanding Advences &

Deposits
p
| Spreads
p
14.0
13.4

14
12.5

13
11.3

11.3

11 2
11.2

10.5

12
11

10

10

7.4

7.3

7.3

7.5

7.5

7.6

8
7.0

7
6.5

6
5

5.9

7
6.0
6

6.0

58
5.8
5.1

5.2

4
3

6.2

5.1

5
4

4.0
3.1

0
CY06

CY07

CY08

CY09
Yield

CY10

CY11

Cost of Funds

CY12

Spread

CY13

1QCY14

12

14

12.8

13

11

13.6

Weighted average Lending & Deposit Rates |Fresh Disbursements &

Deposits
p
| Spreads
p
15

15

14.2

14

14.1

14

13.5
12.7

13

12.4

13

12
10.5

10.7

10.6

10.3

11

10

10

8
7.3

7
6
5

4.9
5.5

6.5

54
5.4
5.2

7.7

7.2

8
7.4
7

6.7
6.7
63
6.3
5.7

5.4

5.7

5
4.6

6
6.0
4.8

0
CY06

CY07

CY08

CY09
Yield

CY10

CY11

Cost of Funds

CY12

Spread

CY13

1QCY14

11

12

Investment Portfolio | GoP Securities

PIBs
GoP Ijara Sukuk
Market T-Bills
Total

31-Mar-13
1,119
459
3,144
4,722

30-Jun-13
1,322
459
3,151
4,932

30-Sep-13
1,302
459
2,940
4,701

Banking Industry Investment in GoP Securities

PIBs
615
728
j Sukuk
415
413
GoP Ijara
Market T-Bills
2,676
2,682
Total
3,705
3,822
Banking Industry holdings % in GoP Securities
PIBs
55%
55%
GoP Ijara Sukuk
90%
90%
Market T-Bills
85%
85%
Total
78%
77%

682
413
2,458
3,552

52%
90%
84%
76%

31-Dec-13
1,380
370
3,181
4,931

744
335
2,736
3,815

54%
91%
86%
77%

31-Mar-14
2,365
323
2,759
5,447

1,522
289
2,304
4,115

64%
90%
84%
76%

PKR bln
YoY Growth
111%
-30%
-12%
15%

147%
-30%
-14%

12.5

12.5

12.0

12.0

11.5

11.5

11.0

11.0

10.5

10.5

10.0

10.0

9.5

9.5

9.0

9.0

8.5

8.5
Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13

Jul-13

Discount Rate

Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14

6M T-bills
T bills Cutoff Yield

3Yrs PIBs

Structure of Interest Rates

Industryy Profitabilityy Trend

140

120

PKR in bln

100

80

60

40

20

CY07

CY08

CY09

CY10

CY11

CY12

1QCY13

Profit After Tax (ytd)

2QCY13

3QCY13

4QCY13

Dec 13
Dec-13

1QCY14

Large Banks
Capital Adequacy at end Dec-13

1
2
3
4
5
6
7

Habib bank
National Bank
United Bank
MCB
Allied
Bank AlFalah
Bak Alhabib

CET 1
12.9%
10.6%
10 0%
10.0%
20.9%
15.5%
8.4%
10.8%

Tier I
Tier II
CAR 2013
12.9%
2.5%
15.4%
10.6%
4.7%
15.2%
10 0%
10.0%
3 3%
3.3%
13 3%
13.3%
20.9%
1.4%
22.3%
15.5%
2.4%
17.9%
8.4%
3.6%
12.1%
10.8%
3.6%
14.4%

CAR 2012
15.3%
15.5%
15 0%
15.0%
22.2%
16.2%
12.6%
15.9%

Medium Banks (System Share: Total Assets >2% and <5% of Total banking
I
dt )
Capital Adequacy at end Dec-13
1 Standard Chartered
2 Askari
3 Faysal
4 The Bank of Punjab
5 Habib
H bib M
Metro
t

CET 1
15.1%
8.2%
9.9%
8.7%
15 6%
15.6%

Tier I
Tier II
15.1%
2.0%
8.2%
2.2%
9.9%
1.4%
8.7%
0.3%
15 6%
15.6%
0 6%
0.6%

Total
17.0%
10.4%
11.3%
9.0%
16 1%
16.1%

CAR 2012
14.3%
11.8%
10.7%
7.7%
16 7%
16.7%

Small Banks (System Share: Total Assets <2% of Total banking Insudtry)
Capital Adequacy at end Dec-13

1
2
3
4
5
6
7
8
9
10

NIB
S
Soneri
i
Summit
JS
The Bank of Khyber
Silk
Sindh
KASB
SAMBA
First Women

CET 1
11.1%
10 5%
10.5%
0.6%
18.8%
23.4%
3.5%
24.0%
42.4%
20.0%

Tier I
Tier II
11.1%
0.0%
10 5%
10.5%
0 4%
0.4%
2.7%
1.7%
18.8%
0.2%
23.4%
0.6%
4.5%
2.4%
24.0%
0.0%
-2.3%
42.4%
0.0%
20.0%
0.0%

Total
11.1%
11 0%
11.0%
4.4%
19.0%
24.0%
6.9%
24.0%
-2.6%
42.4%
20.1%

CAR 2012
13.0%
12 4%
12.4%
4.6%
24.3%
25.0%
5.7%
38.5%
-0.6%
43.8%
24.7%

Total

CAR 2012

Islamic Banks
Capital Adequacy at end Dec-13

CET 1
1
2
3
4
5

Meezan
AlBaraka
BankIslami
Dubai Islamic
Burj

11.4%
9.6%
14.3%
14.4%
20.5%

Tier I
11.4%
9.6%
14.3%
14.4%
20.5%

Tier II
1.1%
2.4%
1.4%
0.2%
0.3%

12.5%
12.0%
15.7%
14.6%
20.8%

14.1%
11.2%
15.5%
19.1%
22.6%

Glossary & Data References

Data References:
1.

2.

Financial Soundness Indicators and Quarterly

Compendium of the Banking System :
[Mar-14, Dec13 Mar-13]
13,
M 13]
National Data Summary Page, SBP :

Glossary:
ADR
IDR
CAR
CET I

Advances to Deposits Ratio

Investments to Deposits Ratio
Capital Adequacy Ratio
Common Equity Tier I

Samiya Mukhtar
samiya@pacra.com
Contact number: +92 42 3586 9504

DISCLAIMER
PACRA has used due care in preparation of this document. Our information has been obtained from sources
we consider to be reliable but its accuracy or completeness is not guaranteed. The information in this
document may be copied or otherwise reproduced, in whole or in part, provided the source is duly
acknowledged. The presentation should not be relied upon as professional advice.