<p><span style="font-family:Arial, Helvetica, sans-serif;font-size:small;">Despite an aggregate DR cut of 350bps and sluggish growth in
advances, Habib Bank Limited (HBL) managed to increase its profitability by
~10%YoY in CY15 to PKR35.1bn (EPS: PKR23.9). Incorporating recent results and
taking management guidance into account for CY16 and beyond, we update our
estimates of HBL. Taking into account latest PIB maturity schedule of HBL
(gross maturity estimated to be around 10% of overall PIBs maturing in CY16)
and tweaking our deposit mix estimates, we have slightly lowered our earnings
forecasts of HBL by 1%-2% across our investment horizon. Consequently, our TP
has also been slightly revised downward to PKR237/sh. HBL is gearing itself to
tap likely growth in private sector credit in the country and is shoring up its
capital b...
