All praise and thanks are Allah’s

FHM commenced its business operation in March, 1985, with an initial capital of Rs.25.0 million only. Continuing with solid, dynamic and prudent approach now the FHM has a total equity base over Rs.3.2 billion and assets size around Rs.5.3 billion.

The basic aim of the FHM was to make contribution towards the transformation of our mercantile as well as financial system and dealings in line with principles elaborated in Shariah. 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 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.

Alhamdulillah, now FHM has completed 29 years and is well on its way of achieving its:

To be the leading Islamic Financial Instituiton within Modaraba sector by providing the best innovative Sharia’h Compliant financial solutions at Maximum satisfaction of customers.

An institution built on Trust, Integrity,Good Governance with Commitment to add value to all stakeholders through an effective human resource management in a modern and progressive organizational culture, maintaining high ethical and professional standards.

The Management of FHM has always given emphasis on building-up quality asset portfolio. The efficacy of FHM’s business strategy and prudent risk management policies has supported the management to maintain outstanding assets quality while ensuring sustainability of performance, despite the increasingly competitive operating environment in Pakistan’s financial market.

Business transactions have always been done on economic considerations, keeping in view the safety of investor’s funds. It can be judged with the performance of FHM of twenty five years and this would convince that “Stability of Operation” and “Sustainability of Growth” are well achieved in every year. It can be observed that FHM is much stronger today in terms of the healthy size of Equity, strong Balance Sheet Footing and sound Profitability.

FHM is committed to both sustainable business practices and its responsibilities as a corporate citizen. We believe that our responsibility is primarily about conducting our business in transparent and ethical way that not only enhances value for all stakeholders but also by giving support to events that enhance the well-being of the community.

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


Continuous payment of dividends
FHM never failed to give dividend in any single year and profit has always been given in shape of cash dividend or stock dividend every year in 29 years of business operations without any fail. The average distribution of the dividends is around 17% and an average distribution of last 11 years is around 20%.

Sound Equity
Through judicious administration of funds and sound investment policies, FHM has assembled a very handsome asset base and equity size. FHM is maintaining Highest Equity base and sound profitability, within Modaraba sector since last several years.

Profitable Venture since Inception
By the Grace of God, due to unmatched business & finance skills of the management the FHM remain profitable venture since the beginning of business operations. By applying strict risk management policies and best business practices Alhamdulillah, FHM has never incurred losses in any year during the business operation of last 29 years.

Credit Rating
With continuing sound financial positions, FHM is maintaining “AA+” and “A1+” credit ratings since last several years. According to PACRA vide their press release dated January 8th , 2014, ratings of AA+ for long term and A1+ for short term of FHM are maintained. As per PACRA the rating reflects demonstrated efficacy of FHM's strategy engendering consistent profitability without compromising quality of its financing book. The management has a focus on strengthening core infrastructure industry, including technological and risk management systems - pre-requisites to withstand the dynamic landscape of financial industry in the country. Despite continuing difficult operating environment, FHM intends to follow an aggressive growth strategy targeting to sizably expand its financing portfolio; however, the team's demonstrated risk management ability lends confidence. Moreover, the ratings draw comfort from FHM's strong risk absorption capacity emanating from a sound equity base.

Recipient of “Best Performing Modaraba” Award
During last 15 years, FHM has received 13 awards as best performing Modaraba from the NBFI and Modaraba Association of Pakistan (MAP) within Modaraba sector between the positions from first to third.

Recipient of "Corporate Excellence" Award
Besides best performance award, the FHM is also receiving “Corporate Excellence Certificate Award” from The Management Association of Pakistan for last six consecutive years within the category of Non-Banking Financial Sector and Equity Investment Instrument. So far FHM has secured five Excellence Certificate Awards and one Excellence Trophy Award.

South Asian Federation of Accountants (SAFA) an apex body of SAARC has once again awarded SAFA BPA “Certificate of Merit” award to our Modaraba from “Financial Services Sector” for "Best Presented Accounts" and "Corporate Governance Disclosures" for the year 2012. The award ceremony was held in Islamabad, Pakistan, on 3rd May, 2014.

The SAFA BPA Award for the “Best Presented Annual Reports” is considered as the most prestigious accolade for financial reporting in the South Asian region and signifies SAFA's recognition and reward for organizations in the region which have achieved excellence in presentation and disclosure of high quality, relevant, reliable and objective financial statements in accordance to the framework stipulated by the International Accounting Standards Board (IASB).

Best Corporate Report Award 2013
The Joint Committee of ICAP and ICMAP in their ceremony held on 19th September 2014 have awarded Second Position “Best Corporate Report Award 2013” to our Modaraba under the category of NBFIs. FHM is the only Modaraba in entire Modaraba sector who has been receiving this award since last five consecutive years.

Brand of the Year Award
First Habib Modaraba received “Brand of the Year” award of the year 2010 from the Brands Foundation of Pakistan. This award was given in the category of Non-Banking Financial Institutions.

by the Grace of God, 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 leading position within the Modaraba sector.

Credit Ratings
News & Events
PACRA Maintains Ratings of First Habib Modaraba (FHM)
The Pakistan credit Rating Agency Limited (PACRA) has maintained the long-term and short-term rating of First Habib Modaraba (FHM) at "AA+" (Double A plus) and "A1+" (A one Plus), respectively. These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments. Press Release.
SAFA BPA "Certificate of Merit" award to First Habib Modaraba (FHM)
SAFA in its award ceremony held in Colombo, Sri Lanka on 22nd March, 2013 awarded SAFA "Certificate of Merit" Award to First Habib Modaraba (FHM) in the category of "Financial Services Sector" for "Best Presented Accounts" and "Corporate Governance Disclosures" for the year 2011. FHM has been receiving this award since last three consecutive years.
Announcement of Cash Dividend for the year ended June 30, 2014
The Board of Directors of First Habib Modaraba in their meeting held on July 23, 2014 has announced a cash dividend of 22% i.e. Re. 1.10/- for Certificate Rs.5/- for the year ended June 30, 2014.
Corporate Excellence Certificate Award
FHM has received “Corporate Excellence Certificate Award” from The Management Association of Pakistan. FHM has been receiving this award for last six consecutive years.
The Pakistan Credit Rating Agency
The Pakistan Credit Rating Agency (PACRA) has maintained the Long Term and Short Term rating of "AA+" and "A1+" respectively of First Habib Modaraba for the year 2012.
Best Performing Modaraba Award 2012
FHM has received "Best Performing Modaraba Award 2012" from the NBFI's and Modaraba Association of Pakistan.
Best Corporate Report Award 2012
FThe Joint Committee of ICAP and ICMAP in their ceremony held on 22nd August, 2013 have awarded Second Position “Best Corporate Report Award 2012” to our Modaraba under the category of NBFIs. FHM is the only Modaraba in entire Modaraba sector who has been receiving this award since last four consecutive years.