# Habib Bank Limited

Habib Bank Limited (often abbreviated as HBL) is a Pakistani bank headquartered at Habib Bank Plaza, Karachi with regional offices in Lahore and Islamabad. It is a subsidiary of Swiss-based organisation Aga Khan Fund for Economic Development (AKFED). Established in 1941 by the Habib Family, it the oldest bank in Pakistan post-independence. In 1972, the bank moved its headquarters to the Habib Bank Plaza which was the tallest building in South Asia at the time. It was nationalised in 1974 by the Government of Pakistan and privatised it in 2004; at that time, the Aga Khan Fund for Economic Development acquired a controlling share and management control. AKFED maintains significant shareholding in HBL to date.
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. As of 2025, HBL is the fourth largest bank in Pakistan by market capitalization and serves about 15% of all Pakistani bank deposits. It is Pakistan's largest bank by tier 1 capital.

## History

Habib Bank Limited was established as a public limited company in Bombay in 1941 by the Habib family, previously engaged in internal trade and private banking. The bank's founding was influenced by the revitalization of Muslim politics by Muhammad Ali Jinnah in 1936, prompting the Habibs to challenge the existing Hindu-British dominance in the banking industry. Supported by Jinnah and the All India Muslim League, Habib Bank aided the Muslim League, subsequently serving as the appointed banker for the Muslim League Fund, the Pakistan Fund, and the Quaid-e-Azam Bihar Relief Fund. Relations between Jinnah and Mahomedali Habib, a key figure in the bank, were notably close. In 1937, under Mahomedali's influence, the Habib family converted from Isma'ilism to Isnasheri Shia Islam, aligning religiously more closely with Jinnah.
In early 1947, at Jinnah's request, the bank's headquarters were relocated to Karachi on August 7, 1947, just before the Partition of India. It was done to facilitate the transfer of Muslim assets to Pakistan, aiding both individual depositors and larger accounts. The bank played a crucial role in the economic framework of newly independent Pakistan.
The Habib family owned and managed the bank until the Pakistan government nationalised it on 1 January 1974. The Habib family received compensation of PKR 36.31 per share from the Government of Pakistan and subsequently the bank was delisted from the Karachi Stock Exchange.
On 13 June 2002, Pakistan's Privatisation Commission announced that the Government of Pakistan would grant the Aga Khan Fund for Economic Development, a subsidiary of the Aga Khan Development Network, majority ownership of HBL against AKFED's investment in the bank.
In 2002, Habib Bank's operations in the United Kingdom faced potential closure due to regulatory issues with the Financial Services Authority. The issue was resolved by converting the operations into a subsidiary. Subsequently, Habib Bank and Allied Bank merged their UK operations, with Habib Bank contributing six branches and Allied Bank contributing four branches. This merger resulted in the formation of Habib-Allied International Bank, in which Habib Bank held a 90.5% share, while Allied Bank held 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 Rs. 2 billion.
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' Pakistan operations and absorbed the staff.
On 18 April 2016, HBL received a licence to operate a subsidiary in Ürümqi, Xinjiang, becoming the first Pakistani bank to operate in China.
In February 2018, HBL appointed senior banker Muhammad Aurangzeb (formerly CEO of Global Corporate Bank, Asia Pacific at JP Morgan) as its President & CEO following the early retirement of Nauman K. Dar on 31 December 2017, after the bank was marred by a penalty of $225 Million (USD) for its non-compliance with risk management and anti-money laundering rules.
In 2020, HBL was designated one of the domestic systemically important banks (D-SIB) of the year by the State Bank of Pakistan.

### International Expansion

In the 1950s, HBL started its international expansion. In 1951, it opened the first three branches in Sri Lanka. The following year, HBL established Habib Bank (Overseas). Then, in 1956, HBL opened the first of five branches in Kenya.
* 1957 or 1958, HBL opened a branch in Aden.
* 1961, HBL opened the first of six branches in the UK.
* 1964 HBL opened the first of four branches in Mauritius and a branch in Beirut.
* 1966, HBL opened the first of eight branches in the UAE.
* 1967 Hyder Mohamedali Habib founded Habib Bank AG Zurich Zurich. After Pakistan nationalised Habib Bank Ltd in 1974, this became the main branch of the family-held Habib Bank.
* 1969, HBL opened the first of three branches and an OBU (Offshore Banking Unit) in Bahrain. However, the then-South Yemeni government nationalised the HBL branch in Aden.
* 1971 HBL opened an OBU in Singapore and a branch in New York City.
* 1972, HBL opened the first of 11 branches in Oman. HBL constructed Habib Bank Plaza in Karachi to commemorate the bank's 25th Anniversary.
* 1974 The government of Pakistan nationalised HBL, and HBL merged with Habib Bank (Overseas). After its nationalization, the Habib Family, any of its undertakings, or its affiliates had no stake in HBL.
* 1975 HBL opened a branch in Belgium. HBL also merged with Standard Bank, a Pakistani bank.
* 1976 HBL opened a branch in the Seychelles, the first of two branches in Bangladesh, and a branch in the Maldives.
* 1979, HBL opened a branch in the Netherlands.
* 1980 HBL opened a branch in Paris and another in Hong Kong.
* 1981 HBL established Nigeria Habib Bank with 40% ownership. HBL also opened a representative office in Tehran.
* 1982 HBL opened a branch in Khartoum.
* 1983, HBL opened a branch in the Karachi EPZ (Export Processing Zone) and a branch in Istanbul.
* 1987 HBL opened a branch in Australia.
* 1991 The Habib Group established a separate private bank, the Bank AL Habib, after private banking was re-established in Pakistan. HBL opened a branch in the Fiji Islands, and took over the branches in Pakistan of the failed BCCI.
* 1992 In Nepal, HBL acquired 20% of Himalayan Bank.
* 1995 HBL established a representative office in Cairo.
* 1990s, HBL established Habib Finance (Australia) and Habib Finance International Limited, Hong Kong.
* 2002 The Government of Pakistan granted the Aga Khan Fund for Economic Development majority ownership of HBL.
* 2017 HBL opened a branch in China at Ürümqi High-tech Industrial Development Zone.
* 2021 HBL became the first Pakistani bank to open a branch and serve clients in Beijing, China.

## Corporate governance

Board of Directors :
| Name | Position |
| Sultan Ali Allana | Chairman of the board |
| Moez Ahamed Jamal | Director |
| Shafiq Dharamshi | Director |
| Salim Raza | Director |
| Najeeb Samie | Director |
| Saba Kamal | Director |
| Khaleel Ahmed | Director |

### List of CEOs

* R. Zakir Mahmood (2000 – September 28, 2012)
* Nauman K. Dar (September 28, 2012 – December 31, 2017)
* Rayomond Kotwal - Interim CEO (December 31, 2017 – April 30, 2018)
* Muhammad Aurangzeb (April 30, 2018 – 11 March 2024)
* Muhammad Nassir Salim (11 March 2024 – )

## Operations

HBL generates more than 70% of its income through its loans and advances, investments, and lending to financial institutions.

### Commercial Banking

As of 2025, HBL has maintained its position as the largest private sector Bank in Pakistan with over 1,728+ branches and 2,300+ ATMs globally, serving 37million+ clients worldwide. Commercial banking is the largest division in the company and provides services to consumers and small businesses including, banking, investments, merchant services, and lending products including business loans, mortgages, and debit cards. All HBL ATMs are linked to Visa, Mastercard, UnionPay, and to the domestic 1LINK, MNET, and PayPak switches. HBL branches also exchange foreign currency, initiate SWIFT and FEDWIRE transfers, and facilitate RAAST real-time money transfer transactions.

### Corporate, Investment and SME Banking

HBL's "business banking" services cover a wide range of business sizes through their corporate banking group, investment banking franchise, and SME banking and commercial banking services. The corporate banking division is based in five cities; Karachi, Lahore, Islamabad, Faisalabad, and Peshawar, and focuses on financing, trade services, project finance, and wholesale banking among other services. HBL's investment banking division focuses on project finance, infrastructure advisory, and M&A advisory, and is the largest in Pakistan by debt and equity capital arranged.

### Asset Management and Wealth Management

HBL's asset management division, HBL Asset Management Limited (HBL AMC) was incorporated in 2006 and launched its first fund in 2007. In 2016, HBL AMC acquired PICIC Asset Management for PKR 4.1 billion. In 2020, HBL received approval from the State Bank of Pakistan to inject PKR 500 million in HBL AMC. As of December 2024, HBL AMC had PKR 320 billion (USD 1.3 billion) in assets under management, making it the fourth largest AMC in Pakistan.
HBL also offers private wealth management and investment management services to high net-worth individuals through its "HBL Prestige" division, specialising in comprehensive investment services.

### HBL Microfinance Bank

HBL Microfinance Bank (HBL MfB) was established in 2002 through a structured transformation of the credit and savings section of the Aga Khan Rural Support Programme (AKRSP), an integrated development programme to pioneer the microfinance sector in the country since 1982 in Gilgit-Baltistan and Chitral. Currently, HBL has a majority share-holding of 89.38% in HBL MfB. HBL MfB specializes in consumer loans including mortgages, solar finance, salary loans, pension loans, and education financing In 2024, HBL announced an equity investment of PKR 6 billion in HBL MfB.

## Lawsuits and controversies
### DFS Investigation

In September 2017, HBL agreed to pay a fine of $225 million in an out-of-court settlement with the New York State Department of Financial Services (DFS) against 53 separate violations allegedly committed between 2007 and 2017.
Following this, HBL shares surged 5 percent, to ₨.160.58 per share, amid investor relief that the fine was not larger than $225 million. The penalty, however, is the largest ever imposed upon a Pakistani financial institution. HBL had already agreed to surrender its licence to operate a branch in New York that had been operational since 1978.
The DFS had earlier sought up to $630m in penalties from HBL for failing to comply with state and federal laws at its only U.S. branch. According to The Nation, compliance issues dated back to 2015 when the DFS told Karachi-listed Habib Bank (HBL) to institute a series of reforms about the bank's policies for preventing illicit money transfers. In a December 2015 statement, the DFS identified issues in the bank's anti-money laundering compliance.
Habib also allegedly cleared transactions to a cybercriminal wanted by the US Federal Bureau of Investigation and a Chinese weapons manufacturer that was subject to US sanctions. Since Habib's New York operations were used to clear dollar-denominated transactions, the bank is required to follow US "know your customer" rules and sanctions law.

### Allegations of Terror Financing

On 28 September 2022, a New York district court passed an order under the Justice Against Sponsors of Terrorism Act placing secondary liability on Habib Bank Limited as a party that "aids and abets, by knowingly providing substantial assistance, or who conspires with the person who committed such an act of international terrorism". The plaintiff claimed that between 2010 and 2019, the bank had aided and abetted Al-Qaeda terrorism and had participated in a conspiracy to launch attacks in Afghanistan that killed or injured 370 people. In response, HBL released a statement claiming the accusations were "meritless" and that the bank was fiercely and thoroughly contesting them.

### FinCEN

In 2020, HBL was named in FinCEN leak published by Buzzfeed News and the International Consortium of Investigative Journalists (ICIJ) regarding the role global banks play in money laundering. It had one suspicious transaction flagged.

## Sponsorships and charitable efforts

HBL currently serves as the title sponsor of the Pakistan Super League (PSL) since the league's first edition in 2016. In November 2021, the sponsorship deal was renewed for another four-year cycle until 2025.
In 2023, the HBL Board supported the enhancement of the Bank’s contribution to the HBL Foundation (HBLF) from 1% profit after tax to 1.5% profit after tax. In 2023, the HBL Foundation surpassed PKR 3 billion in direct contributions to charitable causes. The Foundation allocated funds for healthcare, education, and vocational training programs for skill development and sustainable livelihoods.