Habib Metropolitan Bank Limited (“HABIBMETRO” or the "Bank”) was incorporated as a public limited company, in 1992, and was listed on the Pakistan Stock Exchange (PSX).

The Bank commenced its commercial banking operations as Metropolitan Bank in October 1992. In October 2006, the Bank merged with the Pakistan operations of Habib Bank AG Zurich, resulting in the formation of Habib Metropolitan Bank Limited. The Bank's registered office is located at the HABIBMETRO Head Office on I.I. Chundrigar Road, Karachi.

The Bank provides comprehensive banking services and products. These include specialized trade finance products, besides an array of products and technologically advanced services like mobile banking, globally accepted Visa cards, and a nationwide ATM network. The Bank serves a wide range of corporate, retail, small business, agricultural, Islamic, and asset-financing customers. The Bank's trade finance business includes import and export services such as Letters of Credit, Import Financing, L/C Advising & Confirmation, and Export Bills Collection. The Bank also issues various guarantees for performance, bid, advance payment, and financial support to secure trade and commercial activities. At end-Dec24 the Bank has a branch network of 551 (end-Dec23: 525) branches, including 223 (end-Dec23: 117) Islamic banking branches, an offshore branch (Karachi Export Processing Zone branch), and 1 (end-Dec23:1) sub-branch in Pakistan. 

HABIBMETRO is majorly owned by Habib Bank AG Zurich (HBZ) (51%), rest is owned by Corporates & FIs (30%) and Individuals (19%).

The ownership structure has remained unchanged for many years and there is no expectation of any material change in the foreseeable future.

HABIBMETRO enjoys a close institutional relationship with Habib Group (HG) entities. Habib family, having been involved in banking for over 80 years, is considered the pioneer in introducing banking in Pakistan.

Habib Bank AG Zurich (HBZ) is a global financial institution with over 580 branches across eight countries on four continents. Owned and managed by the Habib Family, HBZ has three wholly-owned subsidiary banks: Habib Bank Zurich Plc (UK), Habib Canadian Bank, and HBZ Bank Limited (South Africa). HBZ also has subsidiaries in Hong Kong (Habib Bank Zurich (Hong Kong) Ltd) and Pakistan (HABIBMETRO Pakistan).

HABIBMETRO’s Board of Directors (Board) comprises eight members, including five non-executive directors, four representing HBZ and two independent directors, and one executive director, the Chief Executive Officer (CEO).

The Chairperson of the Board, Mr. Mohamedali R. Habib, is a well-known and seasoned banker with over 37 years’ experience. He was appointed as Joint President & Division Head (Asia) & Member of General Management of HBZ in 2011 and was elevated to Group CEO in 2016. He is accompanied by well-known and seasoned professionals. Mr. Mohomed Bashir - Non-Executive Director is a highly respected businessman with decades of experience in the textile industry and commerce. He serves as Chairperson of Gul Ahmed Textile Mills and has held key positions in national and international business councils. Recognized globally, he has received several prestigious awards, including the Sitara-e-Imtiaz and international honors from France and Sweden. Mr. Muhammad Hyder Habib - Non-Executive Director is a seasoned banker with over 40 years of experience and currently serves as President of Habib Bank AG Zurich. He also holds directorships in HBZ Bank Ltd. (South Africa), Habib Canadian Bank, and Gefan Finanz AG (Switzerland). He holds a finance degree from Babson College, Boston, USA. Mr. Rashid Ahmed Jafer - Independent Director has 37 years of experience with A.F. Ferguson & Co., including 23 years as a partner, specializing in statutory audit. He is a fellow of ICAP and has served on various key committees, including ICAP’s Quality Assurance Board. Mr. Mohsin Ali  Nathani - Non-Executive Director has nearly 30 years of international banking experience across Asia, the Middle East, and the Levant, and is currently the Regional CEO of Habib Bank AG Zurich. He previously served as President & CEO of HABIBMETRO and held senior roles at Standard Chartered, Barclays, ABN AMRO, and Citigroup. An IBA Karachi MBA graduate, he also serves on multiple boards and is active in philanthropic and educational initiatives. Mr. Ali Abbas Sikander - Independent Director is a seasoned C-level executive with over 25 years of experience in banking and finance, known for driving innovation, digital solutions, and strategic partnerships. He is a subject matter expert in Payments, Microfinance, and Transactional Banking, with a strong track record in building high-performing teams. His strategic leadership and technical acumen make him a valuable asset to forward-thinking organizations. Mr. Hamza Habib - Non-Executive Director, joined the Bank in 2020, has over 14 years of banking experience. He is currently Head of Corporate Banking at Habib Bank AG Zurich in Dubai and also serves on the board of Agriauto Industries Ltd. A Babson College graduate, he is a Certified Director from the Pakistan Institute of Corporate Governance.

The Board actively participates in strategy formulation and effectively monitors the managerial affairs of the Bank. There are five board committees in place, namely i) Audit Committee, ii) Human Resource & Remuneration Committee, iii) Risk & Compliance Committee, iv) Credit  Committee, and v) Information Technology Committee, to assist the Board in the effective oversight of the Bank’s overall operations on relevant matters. 

KPMG Taseer Hadi & Co., Chartered Accountants, serves as the external auditors for the Bank and has provided an unqualified audit report on the annual financial statements for the year CY24. In addition, HABIBMETRO has an Internal Audit Division in place that conducts ongoing reviews to enhance the quality of the Bank's internal control environment.

HABIBMETRO’s organizational structure and lines of authority are well-defined, with proper monitoring and compliance mechanisms, and processes throughout the Bank are largely governed by approved policies and procedures. The Bank, with a largely horizontal organizational structure, has fifteen groups & divisions reporting to the CEO, except the Internal Audit Division, which reports to the Board’s Audit Committee.

Mr. Khurram Shahzad Khan, President & CEO of the Bank, is a seasoned banker with over 35 years of experience in risk, credit, corporate, and investment banking. He has held key leadership roles at institutions like Banque Indosuez, Standard Chartered, and HABIBMETRO. An MBA from the University of Rochester and a Certified Director, he also holds a BSc in Engineering from UET Lahore. Mr. Fuzail Abbas - Chief Financial Officer of the Bank, with over three decades of experience. He oversees financial operations, reporting, and compliance, ensuring strong financial performance. A fellow of ICAP, he plays a key role in the Bank’s corporate governance and strategic growth. Mr. Syed Hasnain Haider Rizvi - Chief Compliance Officer at the Bank, with over 30 years of banking experience. He holds multiple professional certifications, including ACMA, CIA, and AFAIM. He oversees the Bank’s compliance framework, ensuring regulatory adherence and strong corporate governance. Mr. Ali Mansoor - Chief Risk Officer of the Bank, was appointed in 2024. He holds a Bachelor of Commerce degree and has extensive experience in risk and credit management. He oversees the Bank’s risk framework to ensure financial stability and support strategic goals.

HABIBMETRO has various management committees, including the Central Management Committee (CMC), Central Credit Committee (CCC), Asset and Liability Committee (ALCO), Management Compliance Committee, Operational Risk and Control Committee (ORCC), and Information Technology Steering Committee (ITSC). These committees ensure smooth operations, coordinate at different levels, and maintain segregation of duties. An internal control framework is in place, regularly tested to address top risks and ensure effective oversight.

HABIBMETRO continues to upgrade its core banking software, h-PLUS. It offers many features, including Intelligent Option Navigation, Event Monitoring, Real-Time Client Limit Monitoring, and Customer Credit Worthiness Analysis. The Bank is enjoying synergies in the core banking software from the Parent Bank.

The Bank has a comprehensive and well-structured risk management framework aligned with its size, complexity, and target market. Risk considerations are embedded across all levels, strategic, tactical, and operational, and cover key areas such as credit, operations, market, liquidity, and information risk. The framework is supported by strong internal controls, a secure and capable processing system, and built-in segregation of duties. Independent, risk-based audits are conducted throughout the year by the Internal Audit Division. A robust MIS and a team of experienced professionals further enhance risk oversight. The Bank's Board, along with the Board Risk and Compliance Committee (BRCC), Central Management Committee (CMC), and Operational Risk and Compliance Committee (ORCC), oversee the Bank's strategy, efforts, and processes related to risk management.

During CY24, Pakistan's Banking sector's total assets posted growth of ~15.8% YoY whilst investments surged by ~14.5% to PKR ~29.8trln (end-Dec23: PKR ~26.0trln). Gross Advances of the sector recorded growth of ~29.1% to stand at PKR ~16.9trln (end-Dec23: PKR ~13.1trln). Non-performing loans witnessed an increase of 7.3% YoY to PKR ~1,067.9bln (end-Dec23: ~994.8bln). The CAR averaged at 20.6% (end-Dec23: 19.7%). Looking ahead, given the expected monetary rate cut and high cost environment, Banks are likely to sustain some dilution in profitability by CY25. Source: SBP Compendium  

HABIBMETRO, holds a customer deposit base of PKR 908.6bln other than financial institutions at end-Dec24 (end-Dec23: PKR 996.8bln). On such basis, the market share of deposits of the Bank dipped to 3.0% (end-Dec23: 3.7%).

During CY24, the NIMR of the Bank was reported at PKR 70.3bln (CY23: PKR 71.4bln), attributable to enhanced markup income clocking at PKR 234.2bln (CY23: PKR 205.6bln), up by 13.9% on a YoY basis. The major portion of the markup income is primarily derived from investments, debt instruments, and other earning assets, clocking in at PKR 165.2bln (CY23: PKR 140.3bln), whilst markup income from advances clocked in at PKR 69.1bln (CY23: PKR 65.3bln). The asset yield increased to 17.6% (CY23: 15.9%). The cost of funds inclined to 12.6% (CY23: 10.5%). Consequently, the spread stood at 5.0% (CY23: 5.4%).

During CY24, the non-markup income of the Bank increased by 39.2% to stand at PKR 21.3bln (CY23: PKR 15.3bln), with major contributions coming in from fee and commission income being PKR 10.8bln (CY23: PKR 9.4bln), followed by forex income clocking in at PKR 7.1bln (CY23: PKR 5.2bln). Non-markup expenses increased by 16.1% YoY to stand at PKR 34.8bln (CY23: PKR 30.0bln). The increase in the non-markup expenses is mainly driven by an increase in operating expenses and branch expansion initiatives. The provision charges were reported at PKR 4.1bln (CY23: PKR 4.7bln). The profit after tax inclined by 1.2% to stand at PKR 24.7bln (CY23: PKR 24.4bln).

HABIBMETRO's unwavering focus on shareholder protection and customer-centric value is fortified by technologically advanced financial products. The Bank aims to target organic growth, add new clients, mobilize low-cost deposits, improve asset quality, and enhance cost efficiency.

At end-Dec24, the net advances of the Bank increased by 15.1% to PKR 474.3bln (end-Dec23: PKR 412.0bln). Non-performing advances of the Bank inclined by 26.9% to PKR 25.2bln (end-Dec23: PKR 19.8bln). Consequently, the infection ratio increased to 5.0% (end-Dec23: 4.5%). On the other hand, the Advances to Deposit Ratio (ADR) of the Bank inclined to 51.2% (end-Dec23: 40.7%).

The Bank's investment portfolio witnessed a 12.4% decrease in CY24, amounting to PKR 810.9bln (CY23: PKR 925.4bln). In CY24, Government securities are mainly comprised of Pakistan Investment Bonds (PIBs) about PKR 504.4bln (CY23: PKR 473.9bln), followed by Ijarah Sukuk about PKR 141.4bln (CY23: PKR 85.4bln), which have increased from the last year, while the Market Treasury Bills (T-Bills) concentration decreased and stood at PKR 131.8bln (CY23: PKR 336.7bln). Notably, the Bank increased its exposure to longer-term and Shariah-compliant instruments, as evident from the rise in PIBs and Ijarah Sukuk. This shift indicates a focus on stable, long-duration returns and alignment with Islamic finance principles. The notable decline in T-Bills indicates a strategic shift away from short-term instruments, aiming to enhance portfolio duration and optimize yields in response to evolving interest rate trends and market dynamics.

In CY24, Government securities continue to dominate the Bank’s investment portfolio, comprising 96.2% of total investments (CY23: 97.4%). This high concentration reflects the Bank’s conservative investment strategy, prioritizing low-risk, sovereign-backed instruments to ensure capital preservation and stable returns. The composition of deposits was rationalized, with Current Accounts (CA) rising to 43.7% (CY23: 36.9%) and Savings Accounts (SA) adjusting to 34.8% (CY23: 36.6%). The Bank’s liquidity, in terms of Liquid Assets-to-Deposits and borrowing ratio, declined to 64.4% (CY23: 72.7%). 

HABIBMETRO is a well-capitalized institution with an equity base and Capital Adequacy Ratio (CAR) well above the regulatory requirements. At end-Dec24, the Bank’s equity base increased to PKR 115.0bln (end-Dec23: PKR 93.3bln). Subsequently, the CAR of the Bank inclined to 19.3% (end-Dec23: 18.3%), comprising Tier I CAR 16.4% (end-Dec23: 16.6%), in full compliance with SBP’s minimum thresholds. The Bank is committed to sustaining capital ratios significantly above the regulatory benchmarks to ensure robust risk absorption capacity