Announcement

Board of Directors of First Habib Modaraba (FHM) in their meeting held on July 28, 2010, announced 21 % cash dividend for the year ended June 30, 2010, i.e. within twenty eight days fro the close of financial year.

By the Grace of Allah, despite difficult business environment and slow economic conditions globally and locally throughout the year the FHM has been able to maintained its profitability, assets quality and made profit of Rs. 297.0 million. In exceptional business circumstances the performance of FHM remained satisfactory.

Alhamdollilah, FHM has been maintaining its history of continuous payment of dividend to its Certificate Holders for last 25 years and within last 11 years our average payment of dividend is around 20 percent.

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





Alhamdullilah, all praise and thanks be to Allah (SWT)

First Habib Modaraba (FHM) has  completed its successful 25 years of business operations. The twenty five years in the life of an institution may not    be a    longtime, but it is certainly an important milestone.

We thank Almighty Allah for His continued blessing during our existence of 25 years and we pray that He continues to shower    His blessing in future as well.

Silver Jubilee has a special significance in the life of any institution as it signifies a coming of age and maturity. It   is a celebrative milestone in the journey of our corporate objectives.

FHM is well on  its way to realizing its vision of “To be a leading Islamic Financial Institution within the Modaraba sector” and its mission “To become an institution built on trust, integrity, Good  Governance  with  commitment  to  add value to all stakeholders”.

FHM always remain best performing Modaraba within the Modaraba sector. The management of FHM is heir of rich tradition of trading and banking and finance. Business Operations of FHM have always been backed by valuable expertise in the field of fund management.

FHM  commenced  its  business  operation  in 1985 with initial capital of Rs.25.0 million only.  However,  continuing with solid, dynamic and prudent approach now Alhamdullilah, FHM has a total equity base of around Rs.2.800 billion.

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

FHM is much stronger today in terms of the healthy  size  of  equity,  strong  balance  sheet footing  and  sound  profitability  with  good management   talent   and   vibrant   human resource. FHM draw its success by complying with highest ethical and moral standards and always  try  to  make  efforts  to  enhance professional competencies.

The main components of success of FHM was excellent team work across all levels of  the organization. Due to hard and dedicated work of all staff members made   FHM the premier Modaraba in the Modaraba sector.

Following achievements    remained hallmarks during the 25 years operations of FHM

  • Unbroken history of payment of dividend to            Certificate holder every year.
  • Remained a profitable venture throughout the business operations.
  • Maintained “A” category rating since last 11 years.
  • Leading Modaraba in terms of size of assets, equity and profitability.
  • Recipient of  trophy  of  “Corporate Excellence Award”   from  Management Association of Pakistan.
  • Recipient  of  best  performing  Modaraba  awards for last several years for Modaraba Association of Pakistan

FHM’s marketing strategy is meant to reach such clients and make them aware of range of innovative Islamic products and services. Thus, FHM has been penetrating a sizable volume in current market and providing   various   Islamic Financials  products.

Achieving excellent results year after year becomes an ever greater challenge, particularly, in   today’s   competitive   financial   markets. However,  the  management  of  FHM  is  well poised on its path for  growth and expansion. We remain firmly committed to our present  well-defined  and  focused  strategy. While  remaining in core business of Islamic finance,  we will continue to leverage innovative Shariah compliant   business models that add value for our customers  and certificate holders.

By the grace of God, the FHM remained a vibrant and prudent Islamic financial institution within the non banking financial sector and we are  confident  that  FHM  will  Insha’Allah maintain  its  leadership  position  within  the Modaraba sector.

May Allah grant us more success in our future endeavours

 
PACRA's ASSESSMENT
PACRA MAINTAINS RATINGS OF FIRST HABIB MODARABA
The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term rating of “AA+” (Double A plus) and “A1+” (A One Plus) respectively of First Habib Modaraba (FHM). These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments. The ratings denote FHM’s sound risk absorption capacity emanating from a strong equity base with very low leveraging. FHM’s risk-averse business strategy has enabled the Modaraba to sustain its exceptional asset quality despite continuing distressed economic conditions. The management, while following a prudent approach, is working to diversify its financing portfolio, by taping hitherto unexplored potential areas of business. The recent expansion in leased assets is expected to augment the Modaraba’s profitability. Meanwhile, FHM’s association with the House of Habib remains a key factor. About the Modaraba: First Habib Modaraba, established in 1985 and listed on all the bourses of the country, is a perpetual multipurpose modaraba engaged in Islamic modes of financing, mainly Ijarah (lease). FHM is managed by Habib Modaraba Management Company (Pvt.) Limited (HCML). The board of directors of FHM comprises professionals having vast experience of banking and finance. The MD, Mr. Muhammad Shoaib, is the Chairman of Modaraba Association of Pakistan and has been associated with the Modaraba since its inception. The management team is composed of seasoned professionals who have been associated with the Modaraba for a long period.