HMB profits grow by whopping 50% YoY in 1HCY21

August 25, 2021 (MLN): Habib Metropolitan Bank (HMB) has declared its financial results for 1HCY21 ended June 30, 2021 as per which, the bank has posted its consolidated profit after tax (PAT) of Rs6.45billion, translating into an EPS of Rs5.98.

The profitability of the bank grew by a whopping 50.4% YoY when compared to the net profits of Rs4.29bn recorded in the same period of last year.

Alongside financial results, the board of directors has announced an interim cash dividend for the half-year ended June 30, 2021 at Rs2 per share i.e., 20%.

The increase in profitability was primarily due to net interest income (NII).

During the period under review, the bank’s interest income came down by 13% YoY while interest expenses decreased by roughly 30.4% YoY. As a result, HMB’s net interest income (NII) surged by 34% YoY to Rs14.73bn during 1HCY21.

On the other hand, non-funded income (NFI) of the bank edged higher by 2.6% YoY to clock in at Rs4.9bn due to a 34.3% increase in fee and commission income, around an eight-fold increase in other income. However, foreign exchange income went down by 37% YoY to Rs1.26bn coupled with a 70% YoY decline in capital gains.

Moreover, operating expenses went up by 11% YoY to stand at Rs7.71bn whereas the bank witnessed Rs1.80bn provisions that restricted its bottom-line. Nevertheless, the effective tax rate improved to 35% as compared to 39% in 1HCY20.

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