Client Name

Habib Bank Limited (HBL)

Faculty Advisor

Dr. Irum Saba

SBS Thought Leadership Areas

Other

SBS Thought Leadership Area Justification

Our Experiential Learning Project (ELP), conducted in collaboration with Habib Bank Limited (HBL), directly aligns with the Thought Leadership area of Competitiveness of the Financial Sector. The project critically analyzes the strategic financial performance of HBL between 2020 and 2024, benchmarked against key industry players including UBL, MCB, Meezan Bank, Bank Alfalah, and NBP.

The scope encompasses a multi-dimensional review of HBL’s financial resilience and adaptability in response to volatile macroeconomic conditions, including fluctuating interest rates, inflation, liquidity crises, and regulatory shifts. By examining key metrics such as repo borrowings, deposit mix, net interest income, investment strategies, provisioning under IFRS 9, and fee-based income, the report offers insights into how banks maintain competitiveness amidst policy shocks and sectoral instability.

For example, HBL’s strategic reduction in repo borrowing during liquidity ease, or Meezan Bank’s use of Shariah-compliant tools instead of conventional repos, demonstrate how distinct models enhance sectoral efficiency. Our benchmarking also shows how digital transformation and deposit mobilization strategies affect market share, thereby contributing to a broader understanding of competitiveness within Pakistan’s banking industry.

In essence, the project not only evaluates the financial health and performance of key banks but also uncovers the institutional strategies that underpin long-term competitiveness in an evolving financial landscape.

Aligned SDGs

GOAL 9: Industry, Innovation and Infrastructure

Aligned SDGs Justification

This project aligns closely with SDG 9: Industry, Innovation and Infrastructure by assessing how leading Pakistani banks, particularly HBL, have innovated their financial practices to remain stable during economic turbulence. The report reflects the industry's shift toward sustainable and inclusive infrastructure — such as:

  • Digital financial services and automation: HBL's investment in Konnect, AI analytics, and mobile banking showcases its commitment to financial innovation and expanding banking infrastructure to underserved areas.

  • Strengthening financial resilience: HBL’s conservative provisioning and risk-mitigated lending practices under volatile macroeconomic conditions highlight infrastructure that supports long-term economic stability.

  • Supporting SME and rural access: Through branch expansion and targeted lending (e.g., agriculture and SMEs), HBL has contributed to inclusive financial infrastructure development.

  • Regulatory adaptation and IFRS 9 implementation: These measures exemplify institutional modernization, enhancing risk management and transparency in financial systems — key pillars of industrial innovation.

Examples include:

  • HBL’s PKR 130bn NII growth in 2020 despite low interest rates;

  • Use of Mudarabah-based liquidity tools at Meezan Bank for Islamic infrastructure development;

  • Sectoral provisioning for textiles and agriculture amid floods and currency devaluation in 2022–23.

NDA

No

Abstract

This study evaluates the strategic financial decisions and performance of Habib Bank Limited (HBL) from 2020 to 2024 within Pakistan's volatile macroeconomic environment. Through comparative analysis with peer institutions (UBL, MCB, Meezan, BAFL, and NBP), the research investigates borrowing trends, investment strategies, deposit structures, provisioning practices, and Net Interest Income (NII) management. The findings reveal HBL’s consistent risk-mitigated approach—emphasizing core deposits, measured repo borrowing, and asset-liability alignment. Despite interest rate shocks, inflationary pressures, and sectoral disruptions, HBL maintained financial resilience by leveraging forward-looking provisioning under IFRS 9, diversified funding, and digital transformation. The project highlights how robust financial infrastructure and innovation-driven practices support industry-wide resilience and financial inclusion. The research aligns with SDG 9 by examining how institutional innovation in banking fosters sustainable economic infrastructure and strengthens financial ecosystems in emerging markets.

Document Type

Restricted Access

Document Name for Citation

Experiential Learning Project

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