HBL Treasury & Global Markets (TGM) is a core part of a bank’s structure and of Pakistan’s financial landscape. The Bank is an authorized dealer in foreign exchange, one of 12 Primary Dealers nominated for the sale & distribution of government debt, and an authorized dealer for Derivatives, all functions that fall within the purview of the TGM Group.

While the mainstay of TGM is the domestic TGM business, the Group also houses the International Treasury function which has oversight of Treasury functions in international locations. The function encompasses all aspects of the International Treasuries, including liquidity management, investments, and sales & trading, and provides an important bridge between the countries and Head Office.

Asset & Liability Management

The Asset & Liability Management (ALM) function manages the Liquidity & Interest Rate risks of the entire Bank, with a view to optimize the Bank’s profitability from its large, liquid investment portfolio (known as the Banking Book, which constitutes more than half the Bank’s balance sheet), within a framework sanctioned by the Bank’s ALCO Committee. Pursuant to these objectives, the Treasury ALM function carries out reserve management activities as well as analyses and scenario planning of balance sheets.

Treasury Sales

TGM is the “face-to-the-market” for the Bank, encompassing activities in various financial markets including FX (Foreign Exchange), Money Markets, Fixed Income Securities, Equities & Derivatives. The Treasury Sales function is responsible for the Sale & Distribution of financial markets products to all client segments of the Bank, and works closely with relationship businesses to maximize the volume and income stream from these activities. The structuring desk is tasked with the overall management of derivatives and structured / complex products, and in developing bespoke solutions for clients, as well as acting as the new product engine for the Group.

Fixed Income & FX

Trading desks in fixed income and FX manage deal flow and exposures in these products with a view to providing market liquidity to client segments as well as other Bank counterparties, and to proactively position the Bank to take advantage of market movements. The Bank has been the largest market-maker in these products for several years. The equity desk manages the liquid equities portfolio of the Bank.

Research

The Group also houses the Research function, which provides economic and market research to senior management, to clients, and for internal use in the Treasury.