Habib Bank Limited (HBL): Steady resurgence – By Foundation Research

<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Albeit US operation issue somewhat dented HBL&rsquo;s proposition, we believe its domestic franchise remains on strong footing. The bank retains its premium position amongst domestic banks showcased by strong deposit growth. </span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Asset quality is sturdy with non-markup income (NMI) also providing strong support. However, we believe the bank would decelerate advances growth and focus on treasury spreads to pull-up CAR.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Despite adjusting our earnings estimate (CY17/18/19 down 29%/9%/8%), we retain our &lsquo;Outperform&rsquo; stance on the stock given that negatives are largely priced-...