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Private Client ServicesWealth Management

Habib Bank AG Zurich

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HBZ has a long tradition and a unique position

Banking tradition since 1941 Habib Bank AG Zurich (HBZ) draws on a rich tradition of commerce and banking dating back to 1941 when its predecessor, the pioneering Habib Bank Limited, was founded in British India. HBZ, as we know it today, was incorporated in Zurich, Switzerland – a major financial center and the heart of the global Private Banking industry – in 1967.

Family-owned – a different approach to reputation and privacyThe Habib family, which has been committed to banking for five generations, vouches for the firm’s excellence with its name and reputation.

Service with Security for over 50 years

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HBZ Group Financial Highlights

Balance Sheet 2016 2015 2014 2013 2012

Total Assets 11'449 10'583 9'804 7'772 7'85011'449 10'583 9'804 7'772 7'85011'449 10'583 9'804 7'772 7'85011'449 10'583 9'804 7'772 7'85011'449 10'583 9'804 7'772 7'850

Liquid Assets 1'301 1'043 941 853 6871'301 1'043 941 853 6871'301 1'043 941 853 6871'301 1'043 941 853 6871'301 1'043 941 853 687

Advances 3'319 3'195 3'408 2'871 2'3513'319 3'195 3'408 2'871 2'3513'319 3'195 3'408 2'871 2'3513'319 3'195 3'408 2'871 2'3513'319 3'195 3'408 2'871 2'351

Client Deposits 9'314 8'696 8'018 6'398 6'2899'314 8'696 8'018 6'398 6'2899'314 8'696 8'018 6'398 6'2899'314 8'696 8'018 6'398 6'2899'314 8'696 8'018 6'398 6'289

Reserves 834 798 782 703 704834 798 782 703 704834 798 782 703 704834 798 782 703 704834 798 782 703 704

Shareholder's Equity 1'047 1'000 987 873 8771'047 1'000 987 873 8771'047 1'000 987 873 8771'047 1'000 987 873 8771'047 1'000 987 873 877

For further details, kindly download the latest HBZ annual report under www.habibbank.com

«The Banker» magazine ranked HBZ in 2017 as the• 4th Most Sound Bank in Switzerland and as the • 231st Most Sound Bank in the World

The Banker Magazine1 2017 2016 2015 2014 2013 2012

World Ranking in Soundness2

(out of 1'000 Banks)231 204 166 126 129 152231 204 166 126 129 152231 204 166 126 129 152231 204 166 126 129 152231 204 166 126 129 152231 204 166 126 129 152

Swiss Banking in Soundness2

(out of 266 Banks)4 4 3 5 5 54 4 3 5 5 54 4 3 5 5 54 4 3 5 5 54 4 3 5 5 54 4 3 5 5 5

Swiss Banking in Tier 1 Capital3

(out of 266 Banks)27 27 27 27 27 2727 27 27 27 27 2727 27 27 27 27 2727 27 27 27 27 2727 27 27 27 27 2727 27 27 27 27 27

1 «The Banker» is an international financial affairs publication owned by «The Financial Times Ltd». The magazine was first pub-lished in January 1926. «The Banker» is the world's premier banking and data analyst of the banking industry (www.thebanker.com)

2 Soundness defined as Capital Asset Ratio = Leverage Ratio (Tier 1 Capital/Total Assets)3 Tier 1 Capital defined as per latest BIS Guideliens (Basel III Rules)

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Our global network

HBZ Group constists of 346 Offices, 5'073 Employees

(as per 31 December 2016)

Canada:HBZ Subsidiary:Habib Canadian Bank (3 Branches)

United Kingdom:HBZ Subsidiary: London (5 Branches),Glasgow, Manchester, Leicester, Birmingham

Switzerland:Zurich, HBZ Head Office + Branch

South Africa:HBZ Subsidiary:HBZ Bank Ltd (9 Branches)

Kenya:HBZ Branches: Nairobi (3 Branches)Mombasa (1 Branch)

UAE:HBZ Branches: Dubai (5 Branches)Sharjah (1 Branch)Abu Dhabi (2 Branches)+ 1 Subsidiary CompanyHBZ Services FZ LLC





































Pakistan:HBZ Subsidiary:Habib Metropolitan Bank Ltd (307 Branches) + 1 Representative Office

Bangladesh:HBZ Representative Office:Dhaka

Hong Kong:HBZ Subsidiary:Habib Bank Zurich (Hong Kong) Ltd (5 Branches)+ 1 Representative Office




SwitzerlandZurich, HBZ Head Office

United KingdomHBZ Subsidiary:Habib Bank Zurich plcLondonGlasgowManchester Leicester Birmingham

CanadaHBZ Subsidiary:Habib Canadian Bank MississaugaScarboroughBrampton

South AfricaHBZ Subsidiary:HBZ Bank LimitedDurbanJohannesburgLenasiaLaudiumBoksburgPietermaritzburgVeerenigingIslamic Branch

PakistanHBZ Subsidiary:Habib Metropolitan Bank Ltdwith Habib Metropolitan Financial Services+ 1 Representative Office Karachi

KenyaHBZ Branches:NairobiMombasa

UAEHBZ Branches:DubaiSharjahAbu Dhabi+ 1 SubsidiaryHBZ Services FZ LLC

Hong KongHBZ Subsidiary:Habib Bank Zurich (Hong Kong) Limited Hong Kong+ 1 Representative Office Hong Kong




BangladeshHBZ Representative Office Dhaka

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Introducing Wealth Management

Competence – Advise, Portfolio Management, Research Our employees are hand-picked and among the finest banking professionals in the industry. They ensure that our clients receive the best possible advice.

Banking for your communityWealth Management is based on trusted relationships and referrals that are carefully cultivated over years, if not genera-tions. HBZ has built an enviable reputation in famously tight-knit South-Asian communities and has an extensive network through its business presences.

Swiss service – uniquely proactive and flexibleWe are intimately familiar with our clients’ specific requirements, addressing their needs proactively and managing their expectations. We have a strong track record of putting our clients’ needs first and consulting customers according to the best of industry standards.

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Discretionary Portfolio Management• Global and regional multi-asset class portfolios discretion-

ary managed according to Portfolio Risk Profile and your specified investment guidelines

Our services

Investment Advice• Investment advice in line with HBZ house view• Research recommendations based on your Investment

Profile and Portfolio Investment Needs• Asset allocation advise and portfolio health check• Investments expertise on Pakistan

Brokerage Services• Global fixed income (new issues, secondary market)• Global equity markets• Mutual funds and hedge funds• Currencies and precious metals both on spot and forward

basis; physical purchase of gold and silver• Dual Currency Deposits• Listed options

• Sharia-compliant products• Structured products

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Other Banking Services• Fiduciary Deposits / Term Deposits• Lombard Lending • Commercial Loan (property backed) *in specific markets only

• Trade Finance: letters of credit, bill discounting and related services

• E-banking• Safe deposit boxes

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Our investment advice

Investment products and HBZ house view publicationsü Regular market updates and commentariesü Recommendation lists across asset classes ü Portfolio reviews and proposals

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Our focus on Wealth ManagementExtract from Khaleej Times Special Report November 2017

a result of the adoption by the Swiss government of a so-called white money strategy, local wealth managers have noted renewed interest in Switzerland as a booking center. Political stability, sound economic governance but also the quality and breadth of services offered have reasserted themselves as key selection criteria for individuals looking for a safe home for their wealth.

In terms of regulation, tentatively at least, it appears that the wave has crested. In the coming years, we are con-vinced that wealth managers will be concerned more with implementing the new rules than with preparing for yet more rounds of regulatory tightening. If confirmed, this de-velopment would offer better visibility to clients and bank-ers and would allow both of them to return to planning for the long run, after all the essence of wealth management.The same technology, which has enabled this new regime of transparency, has also opened up great new opportuni-ties for the wealth management industry. Beyond the much hyped fintech and roboadvisors, many, at first sight more mundane IT solutions have already had a powerful impact on daily operations. While electronic trading, web bank-ing and on-demand as well as around-the-clock access to portfolios, research and markets have greatly empowered clients, the same features have also handed advisors many more options to engage existing or prospective accounts.Creating value from these innovations will, of course, de-mand considerable investments. For many institutions in an industry pressured by rising costs in the context of the new regulatory and compliance regime this can be a stretch.

Banks and wealth managers need to follow a strategy which plays to their strength, leading more generally to two core business models: universal or niche. A universal player needs to have the scope and scale to service clients the world over with offerings tailored to a large number of markets and client profiles. Niche players on the other hand will focus on very well-defined target markets and client segments which will limit the required investment in both IT and compliance resources. Middling business models meanwhile will continue to struggle since they lack both scale and focus.

Tighter rules and regulations govern the global wealth management industry entailing the end of traditional bank secrecy and heralding a new era of transparency.

Since Habib Bank AG Zurich’s Silver Jubilee, the world has experienced dramatic changes and, with it, the global wealth management industry has undergone a deep and fundamental transformation. While the nature of the business has remained the same – personalized financial services for wealthy individuals – the way of doing business has been totally reshaped. The first great change has been the relentless rise of new wealth in emerging economies, mainly in Asia, which created markets where there were almost none before. At the same time, technological inno-vation has continued to advance at lightning speed, revo-lutionizing in the process every step along the entire value chain. In the aftermath of the Great Financial Crisis of 2008-2009 new and substantially tighter rules and regulations governing the industry emerged across the globe, ending of traditional bank secrecy and heralding a new era of transparency. Another legacy of the crisis have been extre-mely low, in some cases negative interest rates which only recently have started to normalize, with the consequence of profoundly altering key premises in the investment op-portunity set and, very importantly, the perception of risks for managers and clients alike.

Wealth Management in today's context

As the world has started to emerge from the upheavals caused by the meltdown in 2008, the contours of the new world for wealth management have started to become clearer to us. Geographically two important features stand out. For one, the dynamics favoring emerging markets remain unbroken leading to accelerated growth of assets being generated and managed in or close to these loca-tions. The confirmation of Hong Kong and Singapore as two key global hubs is the best reflection of this trend. However, Switzerland has remained the largest destination for off-shore assets. Following years of outflows, some wanted as

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Consolidation should be the natural outcome. There will be new entrants which can start from a blank slate and they should be welcome. But these newcomers will also quickly realize that wealth management amounts to much more than smart algorithms and a slick web presence.

Wealth Management at Habib Bank AG Zurich

All the trials and tribulations in the world of banking over the past 25 years have, of course, also left a profound im- print on the way in which we at Habib Bank AG Zurich con-duct the business of wealth management. In particular, the changes in the global regulatory regime has led the bank to review its portfolio in terms of market coverage.

At the same time, the core values and mission have re-mained unchanged. Guided by the principle “Service with Security” we have continued to focus on our core clients from the South Asian community. Thanks to our home base Switzerland, Habib Bank AG Zurich is ideally located to take advantage of the new normal in wealth management. Currently the bank is readying itself to embrace the new Swiss regulatory framework which will come into effect most likely in 2019. The required additions to the IT landscape will complement the existing platform and enable the front to connect even more closely with the global clientele.

In addition to the common wealth management services which the HBZ is offering, one of our specialty and strength remains the ability to bridge client needs between com-

mercial banking and wealth management. Our large global footprint in markets from which many global players have withdrawn allows us to cater singularly well to those clients who actively manage their international business activities but also wish to build up their individual portfolio of liquid global financial assets. Part of the general wealth manage-ment proposition is to diversify across providers, markets and instruments in order to create robust portfolios for the long run which can withstand major shocks to local and global markets.

Hence our services – both as advisors and as managers of discretionary mandates – aim at allowing our clients to reduce their local exposure which comes natural for entre-preneurs active in their home markets.

Another advantage of our global network of branches and subsidiaries is that we can always serve our customers as close to their center of activity as desired or required. The combination of our in-depth knowledge of local markets and the ability to conduct business across geographies and time-zones is a clear advantage.

Going forward HBZ will look to expanding our wealth ma-nagement services to other jurisdictions within our core markets where they are not yet offered. In addition, we will also consider expanding the breadth of the services available. But rather than building up new capacities solely in-house, we will seek privileged relations with external providers in areas which are closely linked but not part of a core wealth management offering. In this sense we want to complement our suite of essential investment advice and investment services with client access to our network for specialists in ancillary fields. Hence we keep the client relationship at the center of our activities and continue to see ourselves as their trusted advisors first and foremost.

Dr. David Wartenweiler, CFA, Chief Investment Officer

Source: Khaleej Times Special Report November 2017

Guided by the principle “Service with Security” we have continued to focus on our core clients. Thanks to our home base Switzerland, the bank is ideally located to take advantage of the new norm in Wealth Management.

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Our personal commitmentClients and their needs are at the core of all of our Wealth Management activities. Our commitment is thus to our clients, to cater to their individual needs and to serve them to the best of our ability. This commitment extends to all our dealings with clients and seeks to expand the space of mutually benefi-cial interactions. Service with security is more than a tag line, it is a daily reminder that success rests on competence, confidence and trust.

Habib Bank AG ZurichWealth ManagementWeinbergstrasse 59P.O. Box 225CH-8042 ZurichTel: +41 44 269 45 00E-mail: [email protected]

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For your notes

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Risk Disclaimer

Habib Bank AG Zurich (“HBZ”) has prepared this document and the information contained herein are provided solely for information and HBZ marketing purposes.

It is not to be regarded as investment research, a sales prospectus, an offer or solicitation of an offer to enter in any investment activity.

Please note that HBZ reserves the right to change the range of services, the products and the prices at any time without notice. All information contained herein, including without limitation benchmarks, asset classes, asset allocation and investment instruments, and opinions indicated are subject to change.

In the event of figures being included, these may refer to past or simulated past performance. Past performance is not a reliable indicator of future results. Some figures may be forecasts only and forecasts are not a reliable indicator of future performance. Any charts and/or performance figures may not be based on complete 12-month periods which may reduce their comparability and significance. If the currency of a financial product or financial service is different from the currency of your home country, the return may increase or decrease as a result of currency fluctuations. Fees may not be included and these will reduce future performance accordingly.

Products and services described in this document are generic in nature and do not consider specific investment objectives, financial situations or your particular needs.

Therefore, you should not regard this document as a substitute for the exercise of your own judgment. All investments carry a certain degree of risk and your attention is hereby drawn to such risk which can be substantial. Please be aware that the markets in certain securities may be illiquid and therefore valuing the investment and identifying the risks may be difficult. Some investments may be subject to sudden and large falls in value and on disposition may pay back less than invested. You should consult your HBZ Relationship Manager on the nature of such investment and carefully consider whether such investment is appropriate for you. Unless otherwise ex-pressly agreed, HBZ does not act as your financial advisor or fiduciary in any transaction.

Tax treatment depends on your specific circumstances and may be subject to change in the future. HBZ does not provide legal or tax advice. Nothing in this document shall be considered as a representation regarding the tax treatment of assets or investment returns, either in general, or with reference to your specific circumstances and needs. HBZ suggests prior to investing, you seek independent legal and tax advice on the implications of the products/services in the respective jurisdiction and the suitability of products and services.

This information material is for distribution only under such circumstances as may be permitted by applicable law. It is expressly not intended for persons who, due to their nationality or place of residence, are not permitted access to such information under local law. Neither this document nor any copy thereof may be sent, taken into or distributed in the United States or to any U.S. person, nor may this document be distributed in jurisdictions where its distribution by HBZ would be restricted.

In Switzerland, this document is distributed by HBZ, authorized and regulated by the Swiss Financial Market Supervisory Authority (FINMA) (located at Laupenstrasse 27, 3003 Berne, Switzerland). In the United Arab Emirates, this document is distributed by Habib Bank AG Zurich, UAE Branches, authorized and regulated by the Central Bank of the United Arab Emirates. In the United Kingdom, this document is distributed by Habib Bank Zurich Plc, authorized by the Prudential Regulation Authority and subject to regulation by the Financial Conduct Authority and the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from HBZ on request.

Without prior permission of HBZ, reproduction of this document in whole or in part is prohibited. HBZ does not accept any liability whatsoever for the actions of third parties in this respect. HBZ makes no representation or warranty relating to any information herein which is derived from independent sources. HBZ does not accept any liability for any loss or damage arising out of the use of all or any part of this document.

Habib Bank AG Zurich’s registered head office is at Weinbergstrasse 59, 8006 Zurich, Switzerland.

In case of any questions, do not hesitate to contact your Relationship Manager.

HBZ 01.2018

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