This and investigation will be applied on

This
assignment will examine internally and externally the development and performance,
and the capabilities of its development and growth of the international bank,
Bank Habib, Internationally and in Oman, the analysis and investigation will be
applied on the bank`s statistics and declarations. Then we will move to the
Strengths, Weaknesses, Opportunities, Threats, (SWOT) analysis by stating the
bank`s strength points and possibilities, what can they provide the perfect way
to use them. Also, weakness point of the bank will be stated showing the bank`s
lacks the reasons of their existence and the perfect way to deal with them. The
opportunities of this banking institution its possibilities that can be
elicited from its external resources to increase the development and profit
rates of the bank. Threats that the bank`s managers must be aware of, to be
ready to make the right decision in anytime, risks surrounding the bank and the
environment as whole will be considered, especially the ones related to region.
The third part if this paper work will show the competitive advantage`s effects
what facilities and offers can the bank provide for the clients, that a
consumer would prefer over the other competitor`s whether it was for
individuals or companies. The bank`s social responsibility and ethics will be
discussed too, the role it plays in the community and its compliance.

Habib
Bank Limited (HBL) was opened 70 years ago in Pakistan in the year 1947, now
its head office is located in Karachi, the bank has developed and grew and 4
years after the establishment the bank has opened a branch in Colombo, Sri
Lanka in 1915 and it was the first international branch

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

HBL`s
growth has hugely increased, it took over 50 percent of the inward foreign
transmittals and it took a big share of the private B class business for investors
in trade and agricultural field, then HBL was nationalized and expanded its
operations in 1974 to United States, Oman, Holland, Belgium, Maldives,
Seychelles and Singapore.

Habib
Bank opened its first branch in Muscat, Oman in 2012. Allowing the bank international
customers to make their operations in the Middle East. HBL provide many services
to its clients to match each one`s needs whether it was for individuals,
investment or marketing. The bank owns eight branches in different locations in
Oman.

Individual
customers of HBL get to have facilities like ATM and private and investment
finances, checking account, fixable deposit, current account and QuickTransfer.

 

Growth
and Performance:

In
the year 2016 HBL showed an increase in the profit rates in the after-tax with
3%. To have a better look this growth of the bank performance, comparing to
last year level profit – regardless the unstable gas and oil prices and the
changing environment in Oman and the region. Bank Habib also distributed almost
Rs 15/ cut as cash bonus, at the end of 2015.

The
balance sheet of Bank Habib Limited has highly grown and enhanced. The sheer size
and the balance rates of HBL`s quality ah also increased as no other Asian bank
in Oman. Comparing to 2015 HBL now vaunts with the balance rates more than a
huge Rs 2.6 trillion, which shows a 14% growth.      

The
deposits of the bank rose by an unexpected rate, 15% more than the previous
year, due to HBL`s obligation managers` efficient job. In addition to the huge amount
of deposit, making such big growth is a great exploit, and which makes the base
of deposit nearly Rs 2 trillion, which reflects in the branches across the
world. The head office in Oman states a profit increase touching distance of
9%.

Better
still, current account was where this increase is noticeable as most, which
increased by more than 15% over the end of 2015 and now they represent about
37% of the whole deposits. Despite the low grow and sometimes the decreasing of
the top line growth, Bank Habib`s CASA strongly stayed working, this shows from
the 5% increase from year to year in net pointing out income, and even the
paychecks of the deposits kept decreasing for a long while.

A
big growth was noticed in advance, on the asset front, and that was after a
long time, the growth recorded as 17% over the end the year 2015.Habib Bank`s asset
portfolio, had more advances more than investments, and that was a positive
change. The bank`s management strategy puts this profit down to enhanced
economic environment.

Investments
keep being the preferred asset path, on the asset front, changes of investments
as asset front are rarely witnessed.70% is the percentage the IDR of Banks Habib
reaches, and meanwhile ADR barely reaches 40%. In the near term, advances must
keep overtaking investments, in cases of recent drifts a are any director. This
way business would be more reasonable, since the crops on PIBs and funds bill
are currently near as rewarding as they were once.

The
non-centralized income keeps to well support the low growing sections, as
record development was seen in Bancassurance and speculation keeping money
related salary. The non-increase wage may well have fallen fundamentally
year-on-year, and naturally in this way, as pick up on special of securities
descended slamming – as most banks had liquidated out the advantages before.
Bank Habib has generally kept a beware of authoritative costs, and has had a
cost salary proportion to be desirous of. Be that as it may, the yearend
authoritative costs give off an impression of being on the higher side. That
has all the earmarks of being the main blip in a generally excellent benefit
and misfortune proclamation.

HBL’s
disease proportion slipped to single digits without precedent for a long time.
This talks volume of the consistently enhancing resource quality and
judiciousness. With monetary conditions recuperating, and consistently
enhancing organization markers, HBL appears to be all around ready to assemble
higher benefits as the time of record low loan costs may well be behind us.

This
is a statistic show the bank`s the company`s account growth:

2016

2015

2014

Rs (mn)

740,582

639,394

594,690

Advanced

1,324,850

1,296,493

926,495

Investments

1,856,295

1,684,496

1,593,499

Deposits

2,358,796

2,067,466

1,693,587

Total Assets

196,345

182,673

169,576

Total
Equity

 

 

. https://fp.brecorder.com/2017/03/20170322157009/

 

 

SWOT analysis of Habib Bank Limited

 Strength, weakness, opportunities and threats
of Habib Bank Limited, this kind of analysis plays a critical role for managers
to run the company and absorbent the strength, know how deal and disabling the
weaknesses, take advantage of the evolving market opportunities, and invent
strategies and way to effectively overcome the threats and eventually turning
them to strengths for the Bank.

Strengths: HBL is the oldest and the one
having the most experience, it is the only Pakistani bank, and one of the
biggest Asian banks in Oman. Habib bank was not as old as the other banks in
Oman, but it was able to come across the competition of the banking regional
market. The bank`s managers tend to concentrate on client banking instead of
the product concerned with banking. The bank offers products and services that
are designed especially to customers with individual needs.  HBL`s products also play an important role as
a strength. Habib Banks branches in Oman offers diverse products to match all customers’
needs. This gives the customer the option of choosing the product that suits
its needs and field the customer wants to investment, whether he was an
employee with salary or trader. The largest private bank in Pakistan is Bank Habib
limited, expanding its growth in Oman gives the Pakistanis in Oman and the
Omani investors in Pakistan a huge amount of services and facilities. The
network of the bank is large it has largest number of branches in Pakistan between
the private banks, and it has 8 branches across the sultanate.

Weaknesses:  The communication between the bank and
customers about the terms and conditions services and products is weak,
especially that the rules vary from Oman to Pakistan. The routine of the
banking job is boring by nature, this may make employees not enthusiastic to
work. The online services do not offer all what the customer needs, many treatments
require the customer to physically attend the branch. The ATM machines of HBL are
not widely available in Oman, specially out of Muscat, this make the forced to
use another`s company`s ATM machine. Many technological advanced services are
still not available, the bank still uses some traditional ways which slow up
the operations. Feedback of customers is missed, HBL in Oman is need of those
feedbacks to develop and enhance its performance. As mentioned before the bank
lack the modern technology in some sections which leads to poor IT running
system.

Opportunities: Due to features of the bank and
high development it is witnessing, the bank is gaining a huge amount of
investments by foreigners, which gives the bank better potential for development.
What also gives the bank bonus in attracting customers and investors, is the Islamic
system it uses which is raising market. Oman`s advanced technological gate and
the working plans for Habib bank to develop its E-banking systems gives new and
huge opportunities to bank. The return of deposit is a service that, attracts
customers, HBL increases its deposits by offering such facilities. HBL has
focused lately in advertisement to show the products it offers.

 

Threats: The staff of HBL lacks training and
experience this is more obvious at managerial and officer levels. The competition
between the banks is rough in the banking market, especially by international
banks. Other international banks offer good deals and services to their
clients. The high decrease in the prices of gas and oil, leads to changes in
the Omani currency. https://www.slideshare.net/AvinashAdvani2/habib-bank-swot-analysis

Any bank desires to produce services in high quality to its
customers with an affordable fee, this can be achieved through applying
strategies and conditions to accomplish competitive advantage. The bank will get
more clients and investments, or suffer from growth increasing due to
conditions it provides. The customers services, quality of the products offered,
after financing treatments and current account facilities, are all factors that
influence the competitive advantages of as good services with low prices, via
not exchanging currency since Oman and Pakistan exchange investments.

Bank Habib`s Oman comparative advantage vary from form the ones
applied and followed in Pakistan, USA for example, because the advantages are
generated form the market environment. HBL Oman desires to be the rational
customer choice, to unsure its continuation and satisfaction.

when the effects of comparative advantage are moderately
counterbalance by flawed replacements, higher limitations for the most reduced
cost makers will in the long run advantage investors through prevalent returns
or furnish the bank with more assets for marketing. innovative work or authoritative foundation upgrades
to help future development.

Comparative advantage can
be gotten from economies of scale, more effective inward frameworks, area in
geologies with low work or low property costs. These don’t generally suggest
the bank can create a superior item or administration, but instead they can
offer services or products at a lower cost. With regards to worldwide exchange
financial matters, relative points of interest are controlled by circumstance
cost, and any part has comparative advantage at something. HBL has concentrated lately on developing the E-banking online
services and take advantage of that as comparative advantage. The internet
business stage, its merchant relationship and its transportation organize give
a level of scale and effectiveness that is troublesome for retail contenders to
recreate.

Manufacturing processes: Likewise, with past monetary downturns a few CEO`s have
multiplied down on fetched decrease to secure edges. Sadly, past endeavors to
streamline through reshaping and outsourcing may have disposed of a
considerable lot of the clearer chances to lessen cost. In the meantime,
proceeded with customer disappointment is constraining brokers to rethink their
way to deal with benefit levels. The coming year
will probably observe expanded endeavors around the advancement, streamlined and
reliable procedures, and improvement of preparing and pay to strengthen
appropriate deals practices.

Protection
of asset: As the ramifications of the entry of many Omani companies and its
chaperon concentrate on bank wellbeing and soundness turn out to be all the clearer,
banks will probably hope to move to consistence as the ordinary business
action, as opposed to as a progression of segregated administrative reactions.
Generally, Bank Habib will keep on improving its hazard administration
capacities. One region that seems, by all accounts, to be expanding in
significance is the requirement for more viable administration of innovation
based hazard, regardless of whether in view of maturing heritage frameworks or
developing digital dangers. Bank innovation and business pioneers ought to
think about making a move to secure the operational steadiness of their working
stages notwithstanding these dangers.

Delivery
transformation: 

Mobile services
continue to grow and it is expected to expand in the next few years, HBL Oman
developers, release an app for the bank client. The orientation of the big
companies on this mobile network services, especially the companies concerned
with technology, such steps could lead many services with cooperating the bank
branches in Oman.  

Banks may consider
an increase in the level of investment in mobile payments.

Mobile payments save
time to the clients and make the managing operations easier for the bank
employees.  

This underscores the
requirement for industrialization examined above, as the establishment for
conveyance change is found in the essential push to legitimize and streamline
banks’ general innovation framework to better help the sorts of front-office
computerized administrations that their clients are requesting from them.

 

Return on capital:

HBL Oman as
mentioned earlier, in the strategies of assessment spent a lot of time to
acquire assets, to enter the market and compete with other international banks
in Oman. This is so important because the bound of divestitures and
acquisitioned funds are going to determine the competition boundaries. Areas of
strength is where the HBL Oman is probably seeking development opportunities
together with operational changes. At the point when the economy enhances, the
corporate and institutional markets may give some chance to income development,
and it will be up to each bank to figure out where their focused qualities lie.

 

https://www.investopedia.com/terms/c/competitive_advantage.asp

http://www.banktech.com/management-strategies/4-areas-of-focus-for-competitive-advantage-in-banking-in-2013/a/d-id/1296074?

http://globalhbl.com/oman/history.php

HBL Oman is totally devoted and deals with the corporate
social responsibility concept, many activities is included to achieve the
concept goals:

 

HBL, with its Vision of empowering individuals to progress
with certainty and achievement and an expect to enhancing lives. has dependably
been a socially mindful association As the biggest budgetary establishment in
the nation, Hal’s CSR exercises depend on endeavors to Integrate capable
practices. items and administrations Into its center business exercises HBL ‘is
focused on dependable Environment. Social and Governance (ESG) practices and
this year was perceived as the Best Bank in Pakistan around there by the
Institute of Bankers Pakistan HBL has additionally kept up close take after
upon ESG exercises in Thar where HBL is a dynamic speculator and worked with
the Amir Khan Trust to give clean drinking water through the d g ng of wells in
the Thar zone.

HBL is focused on satisfying Its part as a dependable
corporate native through Its help for altruistic causes that advance
instruction. wellbeing and group welfare The HBI. Establishment was set up in
2009 to advance the improvement and prosperity of the underprivileged. What’s
more, Improve their personal satisfaction The Bank contributes 1% of Its
benefits yearly to the HBL Foundation in Its undertaking to advance a more
populist society During 2016. the Bank gave Rs 380 million. both to the HBL
Foundation and furthermore straightforwardly to meriting causes.

In 2016, the HBL. Foundation gave Rs 144 Million to fortify
the gift assets of 14 Government and NCO-run hospitals and clinics all around
the country over The Foundation likewise worked together with the Mane Adelaide
Leprosy Center, Karachi to lead 5 eye surgical camps In Balochistan and gave
money related help to the Abdul Sattar Edhi Foundation for the buy of 20 vast
ambulances, HBL has made a few strides in making restorative administrations
all the more easily open In far flung territories, collaborating With the
Shahid Afridi Foundation to help set up a maternity clinic for women in remote
regions of KPK.

The Bank likewise firmly has confidence in advancing
education and In 2016, the Foundation has given money related help of Rs 104
million to 21 instructive organizations all through Pakistan This incorporates
HBL Platinum Scholarships which were built up as a feature of HBL’s 75th
commemoration exercises. by contributing Rs 5 million each towards the
enrichment assets of 15 advanced education foundations the nation over
notwithstanding settled schools and colleges. the Foundation had worn red
Institutions giving specialized preparing and females’ education. HBL has
dependably been related with the advancement of athletic activities at the
primary basic level. In encouragement of this. HBL banded together With the
Azad Foundation to help elevate road youngsters through their engagement with
sports by advancing them at a worldwide level.