Habib Bank Limited was established in
Bombay in 1941 as a
public limited company by the
Habib family, which had prior experience in internal trade and
private banking. Its founding coincided with the revitalization of Muslim politics under
Muhammad Ali Jinnah from 1936 and reflected an effort to counter
Hindu-British dominance. During the 1960s, HBL expanded into major financial and commercial centers. It opened the first of six branches in the
United Kingdom in 1961. In 1964, it opened the first of four branches in
Mauritius and a branch in
Beirut. In 1966, it entered the Gulf by opening the first of eight branches in the
United Arab Emirates. In 1972, it entered
Oman with the first of eleven branches and constructed
Habib Bank Plaza in Karachi. 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. In 1975, HBL opened a branch in
Belgium and in the same year its Beirut branch building was destroyed in the
communal riots. In 1976, it opened a branch in the
Seychelles,
Bangladesh, and the
Maldives. It was followed with a branch in the
Netherlands in 1979, branches in
Paris and
Hong Kong in 1980, and in 1981 the establishment of Nigeria Habib Bank with 40% ownership, along with a representative office in
Tehran. 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 April 2015, the Government of Pakistan sold its 41.5% stake or 609 million shares in the bank for USD1.02 billion. According to the finance ministry, the
strike price of PKR 168 per share (compared to the floor price of PKR 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 2017, HBL opened a branch in China at
Ürümqi High-tech Industrial Development Zone. In February 2018, HBL appointed
Muhammad Aurangzeb as its president and 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 as a
domestic systemically important bank (D-SIB) of the by the
State Bank of Pakistan. In 2021, HBL opened a branch in
Beijing,
China. ==Corporate governance==