BAHL: PAT surges by 26% YoY in 1HCY21

August 4, 2021 (MLN): Bank Al Habib Limited (BAHL) has announced its financial results today for the 1HCY21, where it reported net profit worth Rs9.14billion (EPS: Rs8.21), depicting a notable growth of 26%YoY compared to Rs7.24bn (EPS: Rs6.52) in the same period last year (SPLY).

The surge in profit is mainly attributable to the provision reversals, and lower effective tax rate.

According to the financial statement sent to PSX, the Bank’s net interest income (NII) posted a meagre growth of 1.21% YoY, primarily owing to the growth in bank’s deposits.

 While non-markup income surged by 43% YoY mainly on the back of a recovery in fee & commission income, foreign exchange income, dividend income, and share of profits from associates by 45.19%, 29.33%, 12.9% and 3.2x YoY respectively.

In addition, the Bank booked a Provisioning reversal of Rs28 million during 1HCY21 compared to the provisioning expense of Rs2.2mn in SPLY.

On the expense front, the operating expenses of BAHL moved up by 12.56% to Rs18.94bn. Meanwhile, bank witnessed a little movement in the head of Workers’ Welfare Fund, up by 2.63% to clocked in at Rs297bn.

On the tax front, the effective taxation of the Bank improved to 37% in 1HCY21 from 40% in SPLY, which further improved BAHL’s bottom line.