Commercial Banking Sector Overview December 2015
Banking Snapshot Key Figures MCB Islamic Bank Ltd. was declared as a Scheduled Bank with effect from Sep.14, 2015. KASB Bank acquisition completed in Jun15 Barclays Bank PLC descheduled in June15 merged with and into HBL Source: SBP
Pakistan Public Debt Profile * For Dec13 domestic debt taken as at end-jan14 ** Data for Sep15 not available therefore assumed as Jun15 Source: SBP - Monetary Policy Information Compendium
Interest Rate CY13 CY14 11MCY15 Source: SBP - Monetary Policy Information Compendium & Statistical Bulletin
Banks Ratings Transition
Listed Banks (21) Stock Performance CY13 CY14 9MCY15 11MCY15 11MCY14 KSE-100 Index Return -0.8% 21.8% Banking Sector Return -24.0% 10.7% Source: KSE
Credit Risk Domestic Commercial Banks (26) Source: SBP - Monetary Policy Information Compendium & Banking Compendium
Advances Book Segmental Analysis Scheduled Banks* *This includes commercial bank (31) and 04 specialized banks (1. ZTBL, 2. SME Bank, 3. Punjab Provincial Co-operative Bank, and 4. Industrial Development Bank) Source: SBP - Banking Compendium
Spreads Scheduled Banks CY13 CY13 CY14 CY14 CY15 CY15 Fall in spreads in fresh loans. If entire deposit and loan book is re-priced, the industry would have hit a spread of 5.3%. Source: SBP - Monetary Policy Information Compendium
Profitability Domestic Commercial Banks (26) Source: SBP - Banking Compendium
Islamic Banking Contribution Source: SBP - Banking Compendium
Market Developments Silk Bank is in process of issuing 6.4bln right shares of Rs. 10bln at PKR 1.56 per share (discount of PKR 8.44/share). Bank received PKR 4.9bln in subscription account from prospective investors, Directors, and General Public. Furthermore, Board allocated unpaid right share of PKR 1.1bln to Shaukat Tarin. Bank has submitted documents for fit and proper test of potential inestor and waiting SBP approval. The process is expected to complete in near term. Dec. 2015: Pakistan's financial inclusion ranking has been elevated to number five in the global index on financial inclusion; two notches up from the 2014 ranking as revealed by the Economist Intelligence Unit's (EIU) Global Microscope 2015 Report. Dec. 18, 2015: The New York branch of HBL has not complied with US anti-money laundering laws or reported suspicious activity in its customers' accounts, the Federal Reserve Board of Governors. FED barred the bank from conducting any dollar-clearing transactions or accepting any new accounts for US dollar clearing as of December 11. Dec. 16, 2015: UBL joins hands with Teradata (data analytics and marketing applications company) to implement integrated data warehouse. UBL (with over 5mln customers and over 1,300 branches) has selected Teradata as its partner of choice for providing and implementing analytical capabilities for its Customer Profitability project. Dec. 11, 2015: Zong, Pakistan has signed a contract with Soneri Bank for the provisioning of Zong BizXcess & Enterprise Solution Services. BizXcess is Zong's unique service that allows the post-paid subscribers to choose a plan and customize with 3G/4G, SMS and Group Call Add-Ons. Nov. 4, 2015: SBP has established a ''Green Banking Unit'' (GBU) with a vision of green and sustainable banking envisions reorientation of banking practices to incorporate resource efficiency, renewable energy and environmental protection in operations and products/services.
Analysts Rana M. Nadeem nadeem@pacra.com Saira Rizwan saira.rizwan@pacra.com Rida Zahoor rida.zahoor@pacra.com Contact Number: +92 42 3586 9504 DISCLAIMER PACRA has used due care in preparation of this document. Our information has been obtained from sources we consider to be reliable but its accuracy or completeness is not guaranteed. The information in this document may be copied or otherwise reproduced, in whole or in part, provided the source is duly acknowledged. The presentation should not be relied upon as professional advice.