Habib Bank Limited (HBL): Penalty of USD629.6mn imposed on HBL’s New York Branch – By FCEL Research

<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">In a notice to PSX, Habib Bank (HBL) disclosed that New York State Department of Financial Services (DFS) has imposed a penalty of USD629.6mn on its New York Branch. HBL looks to contest the penalty in the scheduled administrative hearing and courts of law in the US. It has further decided to close its New York operations.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Though US operations contribute ~1% to consolidated PBT, the winding-up of New York operations would impact the bank&rsquo;s trade income, fee income related to remittances and FX Income.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">If the US courts uphold the penalty, it would result in a negative EPS im...