HBL witnesses a twofold increase in its earnings during 2020

MG News | February 17, 2021 at 06:34 PM GMT+05:00

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February 17, 2021 (MLN): Habib Bank Limited has reported earnings of Rs. 30.9 billion (EPS: 21.06) for the year ended December 31, 2020, i.e. nearly the double of what it earned during the previous year.

The Bank also announced a final Cash Dividend of Rs. 3 per share i.e. 30%. This is in addition to the interim dividend already paid at Rs. 1.25 per share i.e. 12.5%.

The net interest income of the bank went up by 28.4% owing to reduction in interest expense amidst lower interest rates. Similarly, the non-interest income surged by 26.6% owing to presence of income from derivatives of Rs. 1.07 billion and gain on securities of Rs. 7.05 billion. However, a foreign exchange loss of Rs. 161.6 million was also recorded during the year.

Further pressure on the earnings was exerted by a 268% increase in provisioning cost, as well as increase in income tax expense by 65%.

Consolidated Financial Results for the year ended December 31, 2020 (Rupees in '000)
	Dec-20	Dec-19	% Change
Mark-up/return/interest earned	271,237,258	258,113,896	5.1%
Mark-up/return/interest expensed	(141,132,940)	(156,790,596)	-10.0%
Net mark-up and interest income	130,104,318	101,323,300	28.4%
NON MARK-UP / INTEREST INCOME
Fee and commission income	18,795,739	20,447,851	-8.1%
Dividend income	489,303	586,353	-16.6%
Share of profit of associates and joint venture	2,963,090	3,483,593	-14.9%
Foreign exchange income	(161,688)	1,657,595
Income/(loss) from dertivatives	1,077,945	(185,867)
Gain/(loss) on securities - net	7,054,874	(2,657,256)
Other income	375,597	829,310	-54.7%
Total non-markup / interest income	30,594,860	24,161,579	26.6%
Total income	160,699,178	125,484,879	28.1%
NON MARK-UP / INTEREST EXPENSES
Operating expenses	(94,018,405)	(92,236,328)	1.9%
Workers welfare fund - net	(1,109,730)	(573,492)	93.5%
Other charges	(320,793)	(480,056)	-33.2%
Total non-markup / interest expenses	(95,448,928)	(93,289,876)	2.3%
Profit before provisions	65,250,250	32,195,003	102.7%
Provisions/(Reversals) and write offs - net	(12,219,614)	(3,314,081)	268.7%
Extra-ordinary / unusual items
PROFIT BEFORE TAXATION	53,030,636	28,880,922	83.6%
Taxation	(22,117,287)	(13,381,127)	65.3%
PROFIT AFTER TAXATION	30,913,349	15,499,795	99.4%
Basic and diluted earnings per share	21.06	10.45	101.5%

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