VIS Credit Rating Company has recently upgraded House Building Finance Company Limited (HBFC)’s long-term entity rating to ‘AAA’ from ‘AA-‘, marking a significant transformation for the institution. This rating signifies the highest credit quality, with minimal risk factors, akin to the Government of Pakistan’s debt. The short-term rating of ‘A-1+’ remains unchanged, maintaining its position as the highest short-term rating, while the Rating Outlook remains ‘Stable’.
The upgrade reflects several positive factors including improved asset quality indicators, a strong liquidity position, consistent reduction in Non-Performing Loans (NPLs), sound profitability, and robust capital adequacy, coupled with sustained shareholder commitment from the Government of Pakistan.
Imran Ahad, the MD & CEO of HBFC, expressed delight at the rating announcement, considering it a remarkable milestone in HBFC’s journey of improvement and growth. He emphasized the institution’s resilience and successful balance between growth and prudence in meeting customer expectations. Ahad attributed the achievement to the dedication of HBFC teams and reiterated the institution’s commitment to addressing housing needs.
In 2023, HBFC achieved a record operating profit of PKR 3.0 billion, demonstrating an 82% growth over the previous year, with a profit after tax of PKR 2.3 billion, marking a 53% increase over 2022. These financial results underscore the effectiveness of strategic decisions despite challenging circumstances.
As Pakistan’s oldest specialized housing finance institution, HBFC has facilitated over 470,000 families in owning their dream homes, contributing to improved financial security, living standards, and social inclusion.
For the complete press release issued by VIS Credit Rating Company Limited, visit: VIS Press Release