Pakistan Banking Industry

An Overview | Sep-2012

Contents
R Rating ti Universe U i Banking Industry Structure Asset Asset Liability Equity Banking Industry Components Gross Advances Investment Deposit p Mix Interest Rate Trend Asset Quality

Ratings Universe
Banking Universe
[System share based on Total Assets]

30-Sep-12 5 22 7 34 29 5

System Share ~19% ~80% ~1% 100% 95% 5%

Rating Universe PACRA Clients JCR Clients Total ratings D l clients Dual li Total Rated Commercial Banks

30-Jun-11 17 15 32 3 29

30-Sep-12 17 14 31 3 28

Public Sector Banks Local Private Banks Foreign Banks (Branch Operations) Total Commercial Banks a) Conventional Banks b) Islamic Banks

Positive Outlook

Negative Outlook

Source: PACRA & JCR

Banks Ratings (As at 30-Sep-12)

Size System Share PACRA JCR Size System Share PACRA JCR Large Banks ( Greater than 5% of system share in terms of total assets as on end Sep-12) 1. Habib Bank Limited 2. National Bank of Pakistan 3. United Bank Limited 4. MCB Bank Limited 5. Bank Alfalah Limited 6.Allied Bank Limited 7 Bank Al-Habib 7. Al Habib Limited Total Size ~ 15% ~ 14% ~ 10% ~ 9% ~ 7% ~ 7% ~5% 5% ~66% System Share AA+ AA AA+ AA+ PACRA JCR AAA AAA AA+ Medium Banks ( 2%-5% of system share as on end Sep-12) 1. Standard Chartered Bank 2. Habib Metropolitan Bank Limited 3. Bank of Punjab 4. Askari Bank Limited 5. Faysal Bank Limited 6. NIB Bank Limited Total ~ 5% ~4% ~ 4% ~ 4% ~4% ~3% ~22% AAA AA+ AAAA AA AAAA -

Size

System Share

PACRA

JCR

Small Banks (Less than - << 2% of system share as on end Sep-12) Sep 12) 1. Soneri Bank Limited 2. SUMMIT Bank Limited. 3. KASB Bank Limited 4. Bank of Khyber Limited 5. Silk Bank Limited 6. JS Bank Limited 7. Samba Bank Limited 8. First Women Bank Limited 9. SME Bank Limited 10. Sindh Bank Limited Total ~2% ~2% ~1% ~1 % ~1% <1 % <1 % <1 % <1% <1% ~7% BBB AA+ AAAAA A- (RW) AABBB AA-

Islamic Banks (System share as on end Sep-12) 1. Meezan Bank Limited 2. Bank Islami Pakistan Limited 3. Al-Baraka Bank (Pakistan) Limited 4 Burj Bank Limited 4. 5. Dubai Islamic Bank Limited Total ~ 3% <1 % <1 % <1 % <1 % ~5% A A A A A AA-

Negative Outlook Positive Outlook Rating Watch

RW

Banking Industry as % of Gross Domestic Product

Source: Weekly statement of position of all scheduled banks & Pakistan Economic Survey

Asset Structure

Source: Weekly statement of position of all scheduled banks

Liability Structure

Source: Weekly statement of position of all scheduled banks

Equity Structure

Source: Weekly statement of position of all scheduled banks

Segment wise Break-up of Gross Advances

7% 10% 14% 11% 16% 12% 12% 8% 17% 10% 17% 9%

6% 16% 8%

6% 18% 6%

12% 14%
15% 18%

14% 13% 17%

18%

54%

53%

53%

56%

63%

62%

63%

65%

65%

Source: SBP, Quarterly Compendium : Banking Statistics

Consumer Financing at end- Sep12

6% 18% 6%

65%

Sep-12 Total Advances: PKR 3,981,252mln

Source: SBP, Quarterly Compendium : Banking Statistics

Advances to Deposits Vs Investments to Deposits

Source: Weekly statement of position of all scheduled banks

Interest Rate Trend

Asset Quality

Source: SBP, Quarterly Compendium : Banking Statistics

Provisioning Against Non Performing Loans (NPLs)

Source: Offsite Supervision and Enforcement Department, SBP

Asset Quality A Complete View

Source: SBP, Quarterly Compendium : Banking Statistics

Segment-wise break up of NPLs

Advances: 10: PKR 3,714, 312mln, 11: PKR 3,746, 149mln, Sep12 PKR 3,981,253mln

Source: SBP, Quarterly Compendium : Banking Statistics

Sector-wise break up of NPLs

Source: SBP, Quarterly Compendium : Banking Statistics

Analysts

Aisha Yasin +92 42 3586 9504 aisha.yasin@pacra.com

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.