HBFC’s Long-Term Rating Upgraded Three Notches to ‘AAA’ by VIS

HBFC’s Long-Term Rating Upgraded Three Notches to ‘AAA’ by VIS

VIS Credit Rating Company has upgraded the long-term entity rating of House Building Finance Company Limited (HBFC) to ‘AAA’ from ‘AA- ‘.

The long-term rating of ‘AAA’ denotes highest credit quality; the risk factors are negligible, being only slightly more than for risk-free Government of Pakistan’s debt.

The short-term rating has been maintained at ‘A-1+’ which is already the highest short-term rating. The Rating Outlook remains ‘Stable’.

The revision in rating takes into account improvement in asset quality indicators, comfortable liquidity position, consistent reduction in NPLs, sound profitability indicators, and strong capital adequacy of the institution along with demonstrated shareholder commitment by the Government of Pakistan.

Commenting on the rating announcement, Imran Ahad, the MD & CEO of HBFC said: “We’re delighted to receive the ‘AAA’ rating from VIS. This is an incredible milestone for HBFC, in the organization’s continuing journey of improvement and growth. Considering a double-notch upgrade the previous year as well, this achievement is exceptional, keeping in view the extremely challenging operating environment. The recent upgrade by three notches in the entity’s long-term rating is a positive reflection on the institution’s resilience and successful balance between growth and prudence while meeting the expectations of our customers. This milestone is a testament to the commitment and dedication of our teams. HBFC remains committed and well-positioned to fulfil the housing needs of its prospective customers.”

In 2023, HBFC posted a record operating profit of PKR 3.0 billion showing a growth of 82% over the last year. The company’s profit after tax stood at PKR 2.3 billion; an increase of 53% over 2022.

The strong financial position of the institution indicates that strategic decisions taken by HBFC have started yielding results, despite a very tough and challenging operating environment.

As the oldest specialized housing finance institution, HBFC has been providing housing loans to the people of Pakistan for over seven decades.

In this journey, the institution has enabled more than 470,000 families to own their dream homes leading to better financial security, improved standards of living, and greater social inclusion.

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