Treasury

Treasury is a core business area of the bank encompassing Sales and Trading businesses as well as Asset & Liability Management (ALM).

The key areas constituting Treasury are: Foreign Exchange Trading and Sales

HBL provides its clients with a comprehensive range of FX products and services. The Bank’s extensive global network of branches and correspondents, as well as its considerable trade volume in most of the active global currencies enables it to provide highly competitive exchange rates and efficient execution of FX transactions. Real-time exchange rates are provided to the Bank’s clients through the Treasury Sales Desk. Importers and exporters are aided in protecting their positions through the booking of outward forward purchase and sale contracts.

Money Market Desk

The Money Market Desk receives the residual liquidity of the balance sheet and is responsible for deploying the surplus in inter-bank money market. Statutory Reserve management is one of the primary responsibilities of the Money Market Desk. In addition, the Desk is charged with managing the interest rate risk and liquidity risk of the bank’s balance sheet. The Money Market Desk is also responsible for communicating benchmark interest rates to all asset and liability marketing departments across the bank to ensure that deposit and loan pricing is reflective of market conditions. ​

Fixed Income and Derivatives

Treasury is also responsible for investments in fixed income securities to ensure optimal utilization of funds and maximize returns while not compromising on the quality of investment avenues. ​

The team manages a portfolio of fixed income securities which is diversified by design and includes fixed and floating rate investments across international markets in sovereign, corporate and financial debt securities. As a result of HBL’s substantial foreign trade portfolio and extensive customer reach, the Bank is a provider of forward exchange contracts and options in the market.
The Bank has been able to generate derivative transactions tailored to the specific hedging needs of its clients to help them to protect their exchange positions on account of import payments or export bills. The Desk is also able to tailor transactions to hedge interest rate volatility for clients through interest rate derivatives. This service allows clients to effectively meet their internal risk-management requirements and protect their positions from significant shifts in interest rates.