Equity Analysis /
Pakistan

Habib Bank: HABIB BANK: In a pickle

    Rahul Shah
    Rahul Shah

    Head of Financials Equity Research

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    Tellimer Research
    6 September 2017
    Published byTellimer Research
    HBL shares have declined sharply. Since 28 August 2017, when HBL informed the Pakistan Stock Exchange of its US$630mn penalty, its shares have declined by 23%, versus a 9% fall for the Pakistan banking sector and a 2% drop in the overall market. Valuation is now in line with the sector, on an unadjusted basis. HBL shares are now trading at 1.2x 2017f P/B, in line with the Pakistan banks sector. Over the past five years, HBL has traded at a 10% premium to the sector.