SWOT ANALYSIS

STRENGTHS:
 Strong capital base & Highest Capital Adequacy Ratio in peer Banks.
 Highest CASA ratio / low cost deposits (90%) in the industry.
 Offering of comprehensive solutions to clients across products (Debt, equity issuance,
and advisory and facility arrangement).
 Ability to introduce new products to improve margin and volumes.
 Diversified Portfolio of loans and advances and diversified income streams.
 2nd lowest infection ratio in peer banks.
 Conservative and sustainable business policy.

WEAKNESS:
 Limited credit opportunities having low risk profiles.
 Concentration in Govt securities & Lending to Public/Govt owned entities.
 Lesser international / Global presence as compare to peer banks.
 Dependence on the money and capital markets.
 Linkage of minimum deposits rate with discount rate by regulator squeezing banks
margin.
 Exposure to the Euro/US dollar exchange rate, with an impact on growth and results
OPPORTUNITIES:
 Potential for capitalization on the anticipated growth in Islamic industry.
 Strong capital base enable the Bank to explore international markets.
 GSP plus status helping to raise the credit demand and recovery of classified portfolio
in textile sector.
 Positive and macroeconomic stability will increase demand.
 Significant increase in the customer base, further extension of the range of the products.
 Expansion in Africa, Europe and Middle East- Growth and expansion opportunities in
emerging economies.
 Expanding the advisory and other services offered to clients and investors.
 Potential relationship with non-resident Pakistanis to attract FDI and home remittance.
 Population demographics show an increase in working age population and hence
increase in banking needs.

THREATS:
 Competition from peer banks.
 Competition from growing branchless banking.
 Inflationary expectation, high degree of dollarization.
 Delinquencies of credit portfolio due to ailing economic conditions.
 Squeezing margin of Banking industry due to minimum threshold for deposits rates and
reducing discount rate.
 Prevailing global financial markets crisis, sovereign debt crisis in Europe, increasing
US debt levels, slowdown in the world economy.
 Prevalent energy crises adversely affecting projects viabilities and demand for credits.