HBFCL Announces Profit

Karachi, March 29, 2011: House Building Finance Company Limited (HBFCL) held its Annual General Meeting (AGM) today, in which it announced that it has achieved an operating profit for the first time in 4 years. HBFCL, the country’s leading housing finance institution has been steadily reducing its losses over the past 3 years and in the current financial year it further improved its financial position and realized a profit of Rs. 113 million.

In financial year 2007 and 2008, HBFCL reported a loss of Rs. 959 million andRs.414 million respectively. In 2009 and under the new management, the loss was further reduced to Rs.109 million, followed now by a profit of Rs.113 million in financial year 2010. The steady turnaround in the financial results is theoutcome of a comprehensive transformation strategy that HBFCL has been enacting for making the institution an efficient, customer-focused and profitable entity. This transformation is holistic in its approach and aggressively seeks to bring new reforms in almost every section of the organization –Audit, Legal, Human Resources, Finance, Credit & Recoveries, Business Development, Customer Services, Strategy, Marketing & PR, Corporate Affairs and Risk Management.

Speaking about the organization achieving a profit after several years, HBFCL MD and CEO, Azhar A. Jaffri stated: “HBFCL has been a white elephant and a burden on the exchequer for far too long along side various negative perceptions associated with it in the past. The current management is determined to end the past era and re-build HBFCL into a financially and operationally strong institution that will play a leading role in tackling the huge housing shortage in Pakistan which is, at present, estimated to be over 7.5 million housing units. As one can expect, any changes that we bring about will have resistance, particularly by those with vested interests who were profiting from the previous operational and functional inefficiencies. As these highly damaging and culpable activities are restrained, we stand committed to press ahead with our reforms. It is quite clear that unless HBFCL is financially strong, it cannot deliver on its promise.”

To carry out the massive and necessary transformation, HBFCL has enlisted a number of highly qualified and internationally experienced specialists to head functional areas. The new management team is steadfastly leading the turnaround, as evidenced by the profit achieved by the institution in the previous financial year.

The House Building Company Limited (‘HBFCL”) is now an unlisted Public Limited Company. Its Vision is “to be the prime housing finance institution of the country, providing affordable housing solutions to low and middle income groups of population by encouraging new constructions in small & medium housing (SMH) sector.” Since its inception it has provided a range of housing finance products and services for nearly half a million housing units.