PRESS RELEASE

The Pakistan Credit Rating Agency Limited

Rating Action Lahore : 26-Jun-2013

PACRA MAINTAINS THE RATINGS OF BANK AL HABIB LIMITED

The Pakistan Credit Rating Agency (PACRA) has maintained long term and short term entity ratings of Bank AL Habib Limited at "AA+" (Double A Plus) and "A1+" (A One Plus), respectively. The ratings of listed, unsecured subordinated TFC issue of PKR 1,500mln and two privately placed, unsecured subordordinated TFCs issues of PKR 2,000mln and PKR 3,000mln have also been maintained at "AA" (Double A). These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments. The ratings reflect Bank AL Habib's strong performance, exceptional asset quality, and stable financial profile. The ratings draw comfort from the bank's experienced management team, that, while staying prudent in its practices, has built deep rooted relationship with its customers - borrowers as well as depositors. The rating incorporates the bank's ability to capitalize on its expanding branch network augmenting deposit mobilization. The management continued to place deposits in liquid investments while seeking diversification in its advances portfolio at the same time. About the Bank: Bank AL Habib's (BAHL) sponsors are members of Habib family - one of the oldest and most distinguished names in Pakistan's banking sector. BAHL's ten-member BoD has five representatives of Habib family, including the CEO and an executive director, three independent directors and two non-executive directors. The board, while providing strategic guidance to the management, monitors the bank's policies and operations through its committee structure. Mr. Abbas D. Habib, the CEO, has over four decades of experience in domestic and international markets. Presently, the bank operates a network of 397 branches/ sub-branches/representative offices (end-Mar13). At end-Dec12, BAHL represents 5% (2011: 5%) of the total banking sector assets.

Analyst
Noman Umar (+92-42-35869504) noman.umar@pacra.com www.pacra.com

The TFCs
BAHL's 2nd unsecured subordinated TFC of PKR 1,500mln, issued in Feb-07 for a tenor of 8yrs, carries profit rate of 6M K+1.95%. Major principal payment will be in semi-annual installments commencing from Aug-14. BAHL's 3rd, privately placed, unsecured subordinated TFC of PKR 2,000mln, issued in Jun-09 for a tenor of 8yrs, carries mark-up of 15.5% (Yr 1-5) and 16% (Yr 6-8) payable quarterly. Major principal redemption is in 4 installments, starting from Sep-16. BAHL's 4th, privately placed, unsecured subordinated TFC of PKR 3,000mln, issued in Jun-11 for a tenor of 10yrs, carries profit of 15% (Yr 1-5) and 15.5% (Yr 6-10) payable semi-annually. Both the privately placed TFCs carry a Call Option on any profit payment date after 5 years of issue date with prior approval of SBP.

Applicable Criteria and Related Research

- Bank Rating Methodology

Disclaimer
This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.