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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