Swot Analysis: Strengths
Swot Analysis: Strengths
Swot Analysis: Strengths
STRENGTHS:
Loyal management.
Loans are given only to known, reputable clients to avoid chances of fraud.
Very low nonperforming loan.
Promoting generally on seniority basis.
To go global fully
The year 2010 will prove to be another demanding year for the bankwith
scattered. Diversification, innovation and mission driven approachare the
key to success which bank should adopt.
Opportunity to open branch in ruler area to increase its branch networkand
gain more profit.
THREATS:
Political instability.
Decline in private and public sector credit due to tight monetary policy
Pest analysis
Political:
Political instability can lead to changes in laws and policies whichcan be in
favor or against the banking sector
Monopolies Legislation
Taxation Policy
Economic
Economy of Pakistan is facing issues about
Unemployment,
Inflation,
Illiteracy,
Corruption
Business Cycles
Population Demographics
Income Distribution
Social Mobility
Lifestyle Changes
Levels of Educations
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Technological
Investment on Research
Rate of Obsolescence
RISK MANAGEMENT
Credit risk:
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Interest rate risk is the risk that the value of the financial instrument
willfluctuate due to changes in the market interest rates. The HMBs
interest rateexposure is low due to the short-term nature of the majority of
businesstransactions. Interest rate risk is also controlled through flexible
credit pricingmechanism and variable deposit rates.
Liquidity risk:
HMB manages the liquidity position on a continuous basis. The
Banksliquidity position is based on self reliance with a wide branch
network toexpand the Bank deposit base. The Banks liquidity profile
generally consistsof short-term, secured assets, in line with the Banks
credit strategy.
RECOMMENDATIONS
The credit ratings denote a very high credit quality, a very lowexpectation of
credit risk and a very strong capacity for timelypayment of financial commit