BAHL reports muted earnings in CY21

MG News | February 09, 2022 at 03:06 PM GMT+05:00

0:00

February 09, 2022 (MLN): Bank Al-Habib Limited (BAHL) has announced its CY21 results wherein the bank has posted a profit after tax of Rs18.6billion (EPS: Rs16.72) as compared to PAT of Rs17.96bn (EPS: Rs16.16) reported in the calendar year 2020, up by only 3.6% YoY.

This muted growth in profitability is due to lower net interest income (NII), however, lower provision charges and growth in non-funded income (NFI) income helped to achieve meager growth in profitability.

The financial result was accompanied by a final cash dividend of Rs7 per share i.e. 70% for the year ended December 31, 2021,

During the period under review, the bank’s interest income came down by 7% YoY while interest expenses decreased by roughly 9.6% YoY, hence BAHL’s net interest income (NII) stood at Rs55.61bn, showing a decrease of 3.5% YoY during CY21.

While, non-funded income (NFI) of the bank surged by 38.4% YoY to stand at Rs14.5bn due to a 41% increase in fee and commission income, around 38.6% YoY increase in foreign exchange income, 40% jump in other income coupled with a share of profit of Rs372mn, up by 3.25x YoY in CY21.

On the provision side, the bank reported a provision of Rs314mn in CY21, depicting a massive decline of 93% YoY when compared to Rs4.5bn charged in CY20. The higher provision charges in CY20 were related to COVID-related general provisions which are absent in CY21.

Consolidated Profit and Loss Account for the year ended December 31, 2021 (Rupees in '000)
	Dec-21	Dec-20	% Change
Mark-up/return/interest earned	116,747,434	125,290,292	-6.82%
Mark-up/return/interest expensed	(61,138,242)	(67,649,002)	-9.62%
Net mark-up/return/interest income	55,609,192	57,641,290	-3.53%
NON-MARK-UP/INTEREST INCOME
Fee and commission income	9,559,133	6,777,694	41.04%
Dividend income	475,443	432,360	9.96%
Foreign exchange income	2,969,917	2,142,728	38.60%
Income/(loss) from derivatives	-	-
(Loss)/Gain on securities - net	(38,253)	182,013	-
Share of profit from associates	372,034	114,337	225.38%
Other income	1,151,803	821,385	40.23%
Total non-mark-up/interest income	14,490,077	10,470,517	38.39%
Total Income	70,099,269	68,111,807	2.92%
NON-MARK-UP/INTEREST EXPENSES
Operating expenses	(38,907,744)	(34,125,725)	14.01%
Worker’s welfare fund	(623,615)	(673,046)	-7.34%
Other charges	(36,294)	(56,672)	-35.96%
Total non-mark-up/interest expenses	(39,567,653)	(34,855,443)	13.52%
Profit before provisions	30,531,616	33,256,364	-8.19%
Provisions and write offs - net	(314,480)	(4,546,944)	-93.08%
Extra-ordinary / unusual items	-	-
Profit before taxation	30,217,136	28,709,420	5.25%
Taxation	(11,620,151)	(10,751,460)	8.08%
Profit after taxation	18,596,985	17,957,960	3.56%
Earnings per share - Basic and Diluted (in Rupees)	16.72	16.15	3.53%

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