Announcement
The Board of Directors of Management Company in their Meeting held on 7th August 2009 have declared and approved a final cash dividend @ 20% (Re.1/- per certificate of Rs.5/- each) for the year ended 30th June, 2009.
1st Position - Modaraba Association of Pakistan 2009 Award
FHM has received best performance Award "1st Position" from Modaraba Association of Pakistan for the year ended 30th June, 2009

Awards & Achievements





In Pakistan the Modaraba as entity   promulgated through law   called “Modaraba Companies and Modaraba (floatation & control) Ordinance 1980 (MCMO)   and Modaraba Rules, 1981. These   Rules and Ordinance provided an opening for establishment of Modaraba Companies as an entity. The thrust was to develop a corporate sector to conduct its business in conformity with Sharia’h financial system.

FHM commenced its business operation in March, 1985 with initial capital of Rs.25.0 million only. It is a multipurpose Modaraba engaged in various Islamic Financial Services like Ijara, Murabaha, Diminishing Musharaka and other Sharia’h compliant financial activities including deposit taking activities through Certificate of Musharkah (COM) and other Shariah complied mode. However, continuing with solid, dynamic and prudent approach now Allhamdollilah, the FHM has a Paid up capital of Rs.1.00 billion and total equity base of around Rs.2.800 billion.

At present FHM  is one of the best performing Modaraba in the Modaraba Sector. FHM being pioneer in the Modaraba and Non-Banking Islamic Financial sector played a very vital role for promotion of Islamic Finance in Pakistan’s Islamic Financial Market

In conclusion, we proudly say that at present the FHM is one of the best Islamic Financial Services Institutions within the non-banking sector in Pakistan. This has also been acknowledged by other reputed counters such as Rating Agency, Modaraba Association Pakistan, Management Association of Pakistan and other stakeholders of FHM.
PACRA's ASSESSMENT

PACRA UPGRADES

RATING OF FIRST HABIB MODARABA

The Pakistan Credit Rating Agency (PACRA) has upgraded the long-term entity rating of First Habib Modaraba (FHM) to AA+ (Double A plus), while mainaining the short-term rating at A1+ (A one plus). The ratings indicate very low expectation of credit risk and very strong capacity for timely payment of financial commitments.

The ratings reflect FHM’s very strong risk absorption capacity emanating from a very sound equity base with very low leveraging. Meanwhile, FHM’s established risk management framework has enabled the Modaraba to sustain its very good asset quality.

In addition, the management, while following a prudent approach, is working to diversify its Ijarah portfolio, by taping hitherto unexplored potential areas of business. Although the Modaraba’s growth has lately come under pressure, this is the result of its risk-averse business strategy.