Pakistan Banking IndustryPakistan Banking IndustryAn Overview | Sep-2012

ContentsR ti U iRating UniverseBanking Industry Structure

Asset–Asset–Liability–Equity–Equity

Banking Industry Components– Gross AdvancesGross Advances–Investment –Deposit Mixp

Interest Rate Trend Asset QualityAsset Quality

Rating Universe 30-Jun-11 30-Sep-12

PACRA Clients 17 17

Ratings UniverseBanking Universe[System share based on Total Assets]

30-Sep-12 System Share

PACRA Clients 17 17

JCR Clients 15 14

Total ratings 32 31

D l li 3 3

Public Sector Banks 5 ~19%

Local Private Banks 22 ~80%

Foreign Banks (Branch Operations) 7 ~1%

Total Commercial Banks 34 100%Dual clients 3 3

Total Rated Commercial Banks

29 28a) Conventional Banks 29 95%

b) Islamic Banks 5 5%

Positive Outlook Negative Outlook Source: PACRA & JCR

Banks Ratings (As at 30-Sep-12)Size System

SharePACRA JCR

Size System PACRA JCRShare

Large Banks ( Greater than 5% of system share in terms of total assets as on end Sep-12)

1. Habib Bank Limited ~ 15% - AAA

2. National Bank of Pakistan ~ 14% - AAA

Share

Medium Banks ( 2%-5% of system share as on end Sep-12)

1. Standard Chartered Bank ~ 5% AAA -

2. Habib Metropolitan Bank Limited ~4% AA+ -

3. United Bank Limited ~ 10% - AA+

4. MCB Bank Limited ~ 9% AA+ -

5. Bank Alfalah Limited ~ 7% AA -

6.Allied Bank Limited ~ 7% AA+ -

7 Bank Al Habib Limited 5% AA+

3. Bank of Punjab ~ 4% AA- -

4. Askari Bank Limited ~ 4% AA -

5. Faysal Bank Limited ~4% AA AA

6. NIB Bank Limited ~3% AA- -

Total ~22%7. Bank Al-Habib Limited ~5% AA+ -

Total ~66% - -

Total ~22% - -

Size System Share

PACRA JCR

Small Banks (Less than < 2% of system share as on end Sep 12)

Size System Share

PACRA JCR

Small Banks (Less than - <- 2% of system share as on end Sep-12)

1. Soneri Bank Limited ~2% AA- -

2. SUMMIT Bank Limited. ~2% A-

3. KASB Bank Limited ~ 1 % BBB -

4. Bank of Khyber Limited ~1 % A- A

Islamic Banks (System share as on end Sep-12)

1. Meezan Bank Limited ~ 3% - AA-

2. Bank Islami Pakistan Limited <1 % A

3. Al-Baraka Bank (Pakistan) Limited <1 % A A

4 Burj Bank Limited <1 % A5. Silk Bank Limited ~ 1 % - A- (RW)

6. JS Bank Limited <1 % A+ -

7. Samba Bank Limited <1 % - AA-

8. First Women Bank Limited <1 % A- -

4. Burj Bank Limited <1 % - A

5. Dubai Islamic Bank Limited <1 % - A

Total ~5% - -

9. SME Bank Limited <1% - BBB

10. Sindh Bank Limited <1% - AA-

Total ~7% - -

Negative Outlook

Positive Outlook RW Rating Watch

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

14% 11%14%

12%

12%

10%6%

18%

6%6%7%8%

17%

10%9%

17% 16%

8%

18%15%

18%

14%12%

17%

13%14%

16%

11% 12% 10%

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

DISCLAIMERDISCLAIMERPACRA has used due care in preparation of this document. Our information has been obtained from sourceswe consider to be reliable but its accuracy or completeness is not guaranteed. The information in thisdocument may be copied or otherwise reproduced, in whole or in part, provided the source is dulyacknowledged. The presentation should not be relied upon as professional advice.