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ASSIGNMENT 01
SUBMITTED TO :
SIR ASADULLAH QURESHI
SUBMITTED BY :
TUBA ISHAQ
BBA 2C
ROLL NO : 131
Total Assets 4,326,494
BALANCE SHEET OF HBL :
Assets - Total Growth 12.16%
Total Deposits
Demand Deposits
Savings/Time Deposits
Deposits Growth
Total Debt
Long-Term Debt
2021 was an exceptional year for HBL as it achieved several milestones across its businesses.
The Bank’s balance sheet grew by 12% to Rs 4.3 trillion. This was achieved as a result of strong
deposit mobilization in both the domestic and international businesses, with total deposits
increasing by 19% to Rs 3.4 trillion. The Bank’s domestic deposits grew by Rs 480 billion to
cross the Rs 3.0 trillion mark, improving market share to 14.14%. In December 2021, HBL
achieved a landmark Rs 1 trillion mark in domestic current accounts, becoming the first bank in
Pakistan to achieve this milestone; total current accounts increased by 18%, to nearly Rs 1.2
trillion.
HBL stated objective is to support its clients and the real economy through wide-ranging, but
prudent, credit expansion. Domestic advances grew by 20% to more than Rs 1.2 trillion; the
growth was across all business segments. The Bank’s rural lending portfolio reached an all-time
high of Rs 40 billion; housing and construction financing grew 41% to Rs 42 billion and
microfinance lending increased by 37% to Rs 57 billion while keeping losses below industry
norms. Consumer lending continued to break barriers, surpassing the Rs 100 billion mark in
December 2021. HBL’s total advances increased by 23% to over Rs 1.5 trillion, with the ADR
improving from 43.2% to 44.6% in December 2021.
Despite the severe spread compression, the strong balance sheet expansion enabled HBL to grow
net interest income to Rs 131 billion. Non-fund income of the Bank has grown by 19% over
2020 to Rs 36 billion – excluding capital gains, this increased by 50%. The Bank has widened its
leadership in fee income, which posted a stellar growth of 35% to reach Rs 25 billion. Double-
digit growth was seen across most businesses with the flagship Cards business accounting for
more than 50% of the growth. Continued focus on trade resulted in volumes growing to ~USD
17.0 billion, with fees increasing by 28% to Rs 4.1 billion. Income from treasury related
activities (excluding capital gains) rose more than fourfold, to Rs 6.1 billion. Consequently, in
2021, HBL also achieved a record revenue of Rs 168 billion.
HBL continues to invest in its people, its digital infrastructure and in delivering innovative and
unique customer solutions. HBL is committed to serving the communities in which it operates
and demonstrated this commitment through industry-first vaccination drives, a decade of support
for cricket and other events for promoting art and culture. In 2021, total administrative expense
growth was contained to 2%, driving the cost/income ratio down from 58.5% in 2020 to 57.1%
in 2021.
Total provisions of the Bank have reduced by 34% over 2020 which included a discretionary
general provision of Rs 6.4 billion; the specific charge in 2021 is primarily on account of
industry-wide problem credits. Non-performing loans of the Bank have declined by Rs 1.2
billion over December 2020, with reductions in both the domestic and international businesses.
The infection ratio improved from 6.3% in December 2020 to an all-time low of 5.1% in
December 2021. The specific coverage also improved to over 90% in December 2021, with total
coverage remaining above 100%