Press Release

JCR-VIS reaffirms ratings of Habib Bank Limited at AA /A-1+

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Karachi, June 30, 2006: JCR-VIS Credit Rating Company Limited has reaffirmed the entity ratings of Habib Bank Limited (HBL) at AA/A-1+ (Double A/A-One Plus) with a ‘Stable’ outlook.

HBL being the largest private sector commercial bank in Pakistan with extensive market outreach and access to diversified and cost effective deposit mix, remains the bank’s primary strength that has been incorporated in ratings. On the back of strong growth in deposits during 2005, the bank’s loan portfolio has increased substantially with growth in both the corporate and consumer banking portfolio. The bank has also continued its recovery efforts, which has resulted in a reduction in non-performing loans and a decline in net infection.

HBL had witnessed a surge in advances portfolio over the last two years resulting in a relative decline in its liquidity indicators. However given the nature of the bank’s liability mix, liquidity remains adequate. On account of an increase in profitability with improved spreads, and retention of earnings, the capital base of the bank has further strengthened in 2005. Moreover, the bank is in the process of issuing subordinated debt which will also support capitalization. The bank is on the verge of completing the implementation of Misys - a core banking software, which will also assist in upgrading the bank’s control infrastructure.

For further information on this rating announcement, please contact Mr. Safdar Kazi (Ext: 221) or Ms. Sabeen Saleem (Ext: 222) at 5671822/5671833/5680996 or fax to 5681105/5671600.

Faheem Ahmad
President & CEO

Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited (JCR-VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. JCR-VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2006 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited