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HBL

Habib BankKASE:HBL Stock Report

Market Cap

PK₨178.1b

7D

-3.0%

1Y

-6.8%

Updated

06 Dec, 2021

Data

Company Financials +
HBL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance1/6
Financial Health5/6
Dividends4/6

HBL Stock Overview

Habib Bank Limited, together with its subsidiaries, provides commercial banking related services in Pakistan, the Middle East, Africa, Asia, Europe, and North America.

Habib Bank Competitors

United Bank

KASE:UBL

PK₨172.4b

Allied Bank

KASE:ABL

PK₨88.1b

Bank AL Habib

KASE:BAHL

PK₨79.5b

Bank Alfalah

KASE:BAFL

PK₨60.3b

Price History & Performance

Summary of all time highs, changes and price drops for Habib Bank
Historical stock prices
Current Share PricePK₨121.42
52 Week HighPK₨144.80
52 Week LowPK₨107.60
Beta0.97
1 Month Change-3.29%
3 Month Change1.96%
1 Year Change-6.84%
3 Year Change-10.75%
5 Year Change-50.00%
Change since IPO-10.92%

Recent News & Updates

Shareholder Returns

HBLPK BanksPK Market
7D-3.0%-3.1%-4.4%
1Y-6.8%4.7%-6.1%

Return vs Industry: HBL underperformed the PK Banks industry which returned 5.2% over the past year.

Return vs Market: HBL matched the PK Market which returned -6.4% over the past year.

Price Volatility

Is HBL's price volatile compared to industry and market?
HBL volatility
HBL Average Weekly Movement3.8%
Banks Industry Average Movement3.9%
Market Average Movement5.9%
10% most volatile stocks in PK Market9.4%
10% least volatile stocks in PK Market3.7%

Stable Share Price: HBL is less volatile than 75% of PK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HBL's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
194120,795Muhammad Aurangzebhttps://www.hbl.com

Habib Bank Limited, together with its subsidiaries, provides commercial banking related services in Pakistan, the Middle East, Africa, Asia, Europe, and North America. The company operates through Branch Banking; Consumer, SME and Rural Banking; Islamic Banking; Corporate, Commercial and Investment Banking; International and Correspondent Banking; and Treasury segments. It offers current, savings, and term deposits, as well as debit and credit cards; and personal, house, and car loans, as well as overdrafts.

Habib Bank Fundamentals Summary

How do Habib Bank's earnings and revenue compare to its market cap?
HBL fundamental statistics
Market CapPK₨178.11b
Earnings (TTM)PK₨32.41b
Revenue (TTM)PK₨151.52b

5.5x

P/E Ratio

0.6x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HBL income statement (TTM)
RevenuePK₨151.52b
Cost of RevenuePK₨4.77b
Gross ProfitPK₨146.75b
ExpensesPK₨114.34b
EarningsPK₨32.41b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)22.09
Gross Margin96.85%
Net Profit Margin21.39%
Debt/Equity Ratio149.0%

How did HBL perform over the long term?

See historical performance and comparison

Dividends

5.8%

Current Dividend Yield

37%

Payout Ratio

Valuation

Is Habib Bank undervalued compared to its fair value and its price relative to the market?

5.5x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HBL (PKR121.42) is trading above our estimate of fair value (PKR100.22)

Significantly Below Fair Value: HBL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HBL's PE Ratio (5.5x) is in line with the PK Banks industry average.

PE vs Market: HBL is good value based on its PE Ratio (5.5x) compared to the PK market (6.6x).


Price to Earnings Growth Ratio

PEG Ratio: HBL is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: HBL's PB Ratio (0.6x) is in line with the PK Banks industry average.


Future Growth

How is Habib Bank forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

18.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HBL's forecast earnings growth (18.4% per year) is above the savings rate (10%).

Earnings vs Market: HBL's earnings (18.4% per year) are forecast to grow faster than the PK market (8.2% per year).

High Growth Earnings: HBL's earnings are forecast to grow, but not significantly.

Revenue vs Market: HBL's revenue (11.9% per year) is forecast to grow faster than the PK market (8.6% per year).

High Growth Revenue: HBL's revenue (11.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HBL's Return on Equity is forecast to be low in 3 years time (15.6%).


Past Performance

How has Habib Bank performed over the past 5 years?

6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HBL has a high level of non-cash earnings.

Growing Profit Margin: HBL's current net profit margins (21.4%) are lower than last year (21.5%).


Past Earnings Growth Analysis

Earnings Trend: HBL's earnings have grown by 6.4% per year over the past 5 years.

Accelerating Growth: HBL's earnings growth over the past year (1.6%) is below its 5-year average (6.4% per year).

Earnings vs Industry: HBL earnings growth over the past year (1.6%) underperformed the Banks industry 3.4%.


Return on Equity

High ROE: HBL's Return on Equity (11.6%) is considered low.


Financial Health

How is Habib Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: HBL's Assets to Equity ratio (14.5x) is moderate.

Allowance for Bad Loans: HBL has a sufficient allowance for bad loans (100%).

Low Risk Liabilities: 83% of HBL's liabilities are made up of primarily low risk sources of funding.

Loan Level: HBL has an appropriate level of Loans to Assets ratio (34%).

Low Risk Deposits: HBL's Loans to Deposits ratio (44%) is appropriate.

Level of Bad Loans: HBL has a high level of bad loans (5.7%).


Dividend

What is Habib Bank current dividend yield, its reliability and sustainability?

5.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HBL's dividend (5.77%) is higher than the bottom 25% of dividend payers in the PK market (3.51%).

High Dividend: HBL's dividend (5.77%) is low compared to the top 25% of dividend payers in the PK market (10.78%).


Stability and Growth of Payments

Stable Dividend: HBL's dividend payments have been volatile in the past 10 years.

Growing Dividend: HBL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.3%), HBL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HBL's dividends in 3 years are forecast to be well covered by earnings (41.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Muhammad Aurangzeb (57 yo)

3.67yrs

Tenure

Mr. Muhammad Aurangzeb has been President and Chief Executive Officer of Habib Bank Ltd since April 30, 2018 and serves as its Director. Prior to this, he worked for Habib Bank Ltd as its Relationship Mana...


Leadership Team

Experienced Management: HBL's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: HBL's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Habib Bank Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Habib Bank Limited
  • Ticker: HBL
  • Exchange: KASE
  • Founded: 1941
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: PK₨178.105b
  • Shares outstanding: 1.47b
  • Website: https://www.hbl.com

Number of Employees


Location

  • Habib Bank Limited
  • Habib Bank Plaza
  • I.I.Chundrigar Road
  • Karachi
  • 75650
  • Pakistan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/06 15:37
End of Day Share Price2021/12/06 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.