April 28, 2021 (MLN): Bank Al Habib Limited announced its financial results today for the 1QCY21, where it reported net profits of Rs4.63billion (EPS: Rs4.17), exhibiting a 63% YoY jump compared to the net profits of Rs2.84bn (EPS: Rs2.56) in the corresponding period last year.
The deviation in the profits came on the back of higher Net Interest Income (NII), provision reversals, and lower effective tax rate.
During the quarter Bank’s NII jumped by 16.5% YoY, mainly due to lower interest expenses. while non-markup income surged by 42% YoY mainly on the back of a recovery in Fee & Commission income, FX income, dividend income, and share of profits from associates by 40.5%, 73.5%, 28.9% and 4.6x YoY respectively.
Surprisingly, the Bank booked a Provisioning reversal of Rs245.55mn during 3MCY21 compared to the provisioning expense of Rs341.83mn in the corresponding quarter last year. The operating expenses of BAHL increased by 12.57% to Rs9.36bn. Meanwhile, worker’s welfare fund surged by 32.40% during 1QCY21.
On the tax front, the effective taxation of the Bank improved to 35% compared to 40% in SPLY, which further improved BAHL’s bottom line.
The cost to income ratio of the bank clocked in at 58% against 62% in 1QCY20.
|
Consolidated Profit and Loss Account for the three months period ended March 31, 2021 (Rupees in '000) |
|||
|---|---|---|---|
|
Mar-21 |
Mar-20 |
% Change |
|
|
Mark-up/return/interest earned |
25,942,248 |
32,368,221 |
-19.85% |
|
Mark-up/return/interest expensed |
(12,829,815) |
(21,116,692) |
-39.24% |
|
Net mark-up/return/interest income |
13,112,433 |
11,251,529 |
16.54% |
|
NON MARK-UP/INTEREST INCOME |
|||
|
Fee and commision income |
2,322,460 |
1,652,551 |
40.54% |
|
Dividend income |
61,183 |
47,478 |
28.87% |
|
Foreign exchange income |
649,786 |
374,322 |
73.59% |
|
Income/(loss) from derivatives |
– |
– |
|
|
Gain/ (Loss) on securities – net |
3,930 |
17 |
23017.4% |
|
Share of profit from associates |
47,895 |
10,423 |
359.51% |
|
Other income |
163,477 |
204,208 |
-19.95% |
|
Total non-mark-up/interest income |
3,248,731 |
2,288,999 |
41.93% |
|
Total Income |
16,361,164 |
13,540,528 |
20.83% |
|
NON-MARK-UP/INTEREST EXPENSES |
|||
|
Operating expenses |
(9,360,216) |
(8,314,951) |
12.57% |
|
Workers welfare fund |
(144,771) |
(109,340) |
32.40% |
|
Other charges |
(783) |
(248) |
215.73% |
|
Total non mark-up/interest expenses |
(9,505,770) |
(8,424,539) |
12.83% |
|
Profit before provisions |
6,855,394 |
5,115,989 |
34.00% |
|
Reversals (Provisions) and write offs – net |
245,444 |
(341,827) |
|
|
Extra-ordinary / unusual items |
– |
– |
|
|
Profit before taxation |
7,100,838 |
4,774,162 |
48.73% |
|
Taxation |
(2,467,793) |
(1,933,032) |
27.66% |
|
Profit after taxation |
4,633,045 |
2,841,130 |
63.07% |
|
Earnings per share – Basic and Diluted (in Rupees) |
4.17 |
2.56 |
62.89% |
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