January 31, 2024 (MLN): Bank AL Habib Limited (PSX: BAHL) has revealed its financial statement today for the year ended December 31, 2023, as per which the bank posted a profit worth Rs35.93billion [EPS: Rs32.33], depicting an increase of 2.15xYoY, compared to Rs16.69bn [EPS: Rs15.01] in the same period last year (SPLY), bank’s filing on PSX showed today.
Driven by the massive surge in profits, the board of directors of BAHL has announced a final cash dividend for the period ended December 31, 2023, at Rs5 per share i.e. 50%.
This comes in addition to interim cash dividends already paid at Rs9 per share i.e. 900%.
Going by the income statement, the bank witnessed an increase of 60.56% in its net interest income (NII) to stand at Rs124.14bn, compared to SPLY. The growth in NII is due to a jump in interest-earning (Rs373.89bn), up by 86.1%YoY.
Similarly, the bank’s total Non-Markup income rose by 12.85% YoY to Rs24.35bn due to a significant jump in fee and commission income to clock in at Rs14.68bn as compared to Rs3.11bn in SPLY.
Another crucial element of BAHL's other income was its share of profit from associates, which experienced a significant increase of 45.62% during the review period, reaching Rs1.13bn.
Conversely, the Foreign exchange income of the bank dropped by 5.52% YoY to Rs6.84bn in 2023.
In the expense section, the total expenses rose to Rs72.314bn in 2023 compared to Rs52.96bn in SPLY, depicting an increase of 36.54%.
The bank incurred higher expenses as the operating costs soared by 35.66% to Rs70.53bn in the respective period.
Outflow through the Workers Welfare Fund and Other charges also increased to Rs1.56bn and Rs228.4m in 2023, marking a 90% and 46% rise, respectively.
In addition, the bank incurred a provision expense worth Rs4.18bn during the review period, significantly down compared to the provision expense of Rs12.88bn recorded in the corresponding period last year.
On the tax front, the bank paid Rs36.08bn, 2.2x YoY higher than the amount paid in 2022.
| Consolidated Profit and Loss Account for the year ended December 31, 2023 (Rupees in '000) | |||
|---|---|---|---|
| Dec-23 | Dec-22 | % Change | |
| Mark-up/return/interest earned | 373,887,686 | 200,910,552 | 86.10% |
| Mark-up/return/interest expensed | (249,743,418) | (123,591,617) | 102.07% |
| Net mark-up/return/interest income | 124,144,268 | 77,318,935 | 60.56% |
| NON-MARK-UP/INTEREST INCOME | |||
| Fee and commission income | 14,680,160 | 11,883,581 | 23.53% |
| Dividend income | 701,543 | 684,359 | 2.51% |
| Foreign exchange income | 6,841,341 | 7,241,088 | -5.52% |
| Income/(loss) from derivatives | |||
| Loss on securities – net | 30,922 | 138,857 | -77.73% |
| Share of profit from associates | 1,133,848 | 778,627 | 45.62% |
| Other income | 965,552 | 854,177 | 13.04% |
| Total non mark-up/interest income | 24,353,366 | 21,580,689 | 12.85% |
| Total Income | 148,497,634 | 98,899,624 | 50.15% |
| NON-MARK-UP/INTEREST EXPENSES | |||
| Operating expenses | (70,525,264) | (51,985,620) | 35.66% |
| Workers welfare fund | (1,561,292) | (821,631) | 90.02% |
| Other charges | (228,401) | (156,435) | 46.00% |
| Total non mark-up/interest expenses | (72,314,957) | (52,963,686) | 36.54% |
| Profit before provisions | 76,182,677 | 45,935,938 | 65.85% |
| (Provisions) and write-offs – net | (4,175,409) | (12,880,545) | -67.58% |
| Extra-ordinary / unusual items | – | – | – |
| Profit before taxation | 72,007,268 | 33,055,393 | 117.84% |
| Taxation | (36,076,946) | (16,369,089) | 120.40% |
| Profit after taxation | 35,930,322 | 16,686,304 | 115.33% |
| Earnings per share – Basic and Diluted (in Rupees) | 32.33 | 15.01 | – |
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Posted on: 2024-01-31T15:00:29+05:00
