Habib Bank Limited () abbreviated as HBL, is a Pakistani multinational bank based at Habib Bank Plaza, Karachi, Pakistan.
Established in 1941 by the Habib Family, HBL is Pakistan's oldest, largest and the first commercial bank. In 1951, it opened its first international branch in Colombo, Sri Lanka. In 1972, the bank moved its headquarters to the Habib Bank Plaza, which became the tallest building in South Asia at the time. The Government nationalised the bank in 1974 and privatised it in 2004; at that time, the Aga Khan Fund for Economic Development acquired a controlling share and management control.
HBL significant shareholding lies with the Aga Khan Fund for Economic Development (AKFED) which is based in Geneva, Switzerland.
HBL is the largest domestic multinational company in Pakistan in terms of assets, and has repeatedly ranked as the top Pakistani company in the Forbes Global 2000. It is also Pakistan’s largest private sector bank, with over 1700 branches and more than 2000 ATMs. All HBL ATMs are linked to Visa and Mastercard, China UnionPay, and to the domestic 1LINK, MNET, and PayPak switches. IBFT (Interbank Funds Transfer) facility and utility bill payment capability are also provided at HBL ATMs. HBL branches also exchange foreign currency, initiate SWIFT and FEDWIRE transfers, and facilitate RAAST real-time money transfer transactions.
As of December 2022, HBL had 21,632 permanent employees.
History
Quaid-e-Azam Mohammed Ali Jinnah, Pakistan's first Governor General, realised the importance of financial intermediation while he was campaigning for the creation of a separate homeland for the Muslims of the subcontinent. He persuaded the Habib family to establish a commercial bank that could serve the Muslim community. His initiative resulted in the creation of Habib Bank in 1941, with head office in Bombay (now Mumbai) and fixed capital of 25,000 rupees. The bank played an essential role in mobilising funds from the Muslim community to finance the All-India Muslim League's campaign to establish Pakistan. Habib Bank also played an important role in channeling relief funds to Muslims hurt in the communal riots and violence that preceded the departure of the British from British India and the subsequent partition.
After the formation of Pakistan in 1947, Habib Bank moved its headquarters to Karachi, Pakistan's first capital, at the urging of Governor-General Jinnah. This gave Karachi its first commercial bank in the newly formed country.
The Habib family would own and manage the bank until the Pakistan government nationalised it on 1 January 1974.
On 13 June 2002, Pakistan's Privatisation Commission announced that the Government of Pakistan would grant the Aga Khan Fund for Economic Development (AKFED), a subsidiary of the Aga Khan Development Network, majority ownership of HBL against AKFED's investment in the bank.
In 2002, HBL's UK operation came close to being shut down due to regulatory issues with the Financial Services Authority. The problem was resolved by converting the operations to a subsidiary. Then Habib Bank Limited and Allied Bank of Pakistan merged their operations (Habib contributed its six branches and Allied its four branches) into a new bank, called Habib-Allied International Bank, in which Habib Bank has a 90.5% shareholding, while Allied Bank has 9.5%.
In December 2003, the Government of Pakistan granted AKFED rights to 51% of the shareholding in the bank against an investment of PKR 22.409 billion (US$389 million). In February 2004, Government of Pakistan handed over management control of Habib Bank to AKFED. The Board of Directors was reconstituted to have four AKFED nominees, including the Chairman and the President/CEO and three Government of Pakistan nominees.
In 2013, the bank acquired Citibank Pakistan consumer business for .
In April 2015, the Government of Pakistan sold its 41.5% stake or 609 million shares in the bank for $1.02 billion. According to the finance ministry, the strike price of Rs. 168 per share (compared to the floor price of Rs. 166 per share) was recommended by the Privatisation Commission Board. The bank's owners now comprise the Aga Khan Fund for Economic Development (51%), and the remaining 49% of shares are in free float. CDC Group holds 4.99%, and the International Finance Corporation holds 0.87%, while individuals, institutions, and funds hold the rest of the shares.
In June 2015, the bank acquired Barclays's Pakistan operations and absorbed the staff.