April 25, 2024 (MLN): Bank AL Habib Limited (PSX: BAHL)’s earnings during the quarter ended March 31, 2024, dropped by 3.71% YoY to Rs10.23 billion [EPS: 9.21] compared to a profit of Rs10.63bn [EPS: 9.56] recorded in the same quarter last year (1QCY23).
Despite this drop, the board of directors of BAHL has announced an interim cash dividend at Rs3.5 per share i.e. 35%.
Going by the income statement, the bank witnessed an increase of 49.75% YoY in its net interest income (NII) to stand at Rs36.88bn, compared to 1QCY23.
The growth in NII is attributed to a jump in interest-earning (Rs119.07bn), up by 59.18% YoY.
Similarly, the bank’s total non-markup income rose by 24.16% YoY to Rs8bn due to a significant jump in fee and commission income to clock in at Rs4.43bn as compared to Rs3.31bn in SPLY.
Another crucial element of BAHL's other income was its foreign exchange income, which experienced a drop of 7.79% YoY.
Conversely, the Share of profit from associates of the bank increased by 59.17% YoY to Rs307.88m in 1QCY24.
Total expenses rose to Rs18.49bn in 1QCY24 compared to Rs15.38bn in SPLY, depicting an increase of 20.20%.
The bank incurred higher expenses as the operating costs soared by 19.23% to Rs17.93bn in the respective quarter.
Outflow through the Workers Welfare Fund and Other charges also increased to Rs427.09m and Rs126.22m in 1QCY24.
The profit and loss statement reveals that the primary reason for the bank's lower profit was a significant provision expense of Rs6.87 billion, in contrast to the provision reversal of Rs980.27 million in 1QCY23.
On the tax front, the bank paid Rs9.29bn, 53.61% YoY higher than the amount paid in the same quarter last year.
| Consolidated Profit and Loss Account for the quarter ended March 31, 2024 (Rupees in '000) | |||
|---|---|---|---|
| Mar-24 | Mar-23 | % Change | |
| Mark-up/return/interest earned | 119,072,376 | 74,805,273 | 59.18% |
| Mark-up/return/interest expensed | (82,195,217) | (50,179,715) | 63.80% |
| Net mark-up/return/interest income | 36,877,159 | 24,625,558 | 49.75% |
| NON MARK-UP/INTEREST INCOME | |||
| Fee and commision income | 4,432,964 | 3,134,194 | 41.44% |
| Dividend income | 85,536 | 150,828 | -43.29% |
| Foreign exchange income | 2,487,925 | 2,698,027 | -7.79% |
| Income/(loss) from derivatives | – | – | |
| Loss on securities – net | 220,512 | 24,537 | 798.69% |
| Share of profit from associates | 307,880 | 193,433 | 59.17% |
| Other income | 471,972 | 247,928 | 90.37% |
| Total non mark-up/interest income | 8,006,789 | 6,448,947 | 24.16% |
| Total Income | 44,883,948 | 31,074,505 | 44.44% |
| NON MARK-UP/INTEREST EXPENSES | |||
| Operating expenses | (17,933,811) | (15,040,833) | 19.23% |
| Workers welfare fund | (427,090) | (339,955) | 25.63% |
| Other charges | (126,218) | (70) | 180211.43% |
| Total non mark-up/interest expenses | (18,487,119) | (15,380,858) | 20.20% |
| Profit before provisions | 26,396,829 | 15,693,647 | 68.20% |
| Credit loss allowance / provisions / reversals and write offs – net | (6,874,369) | 980,270 | -801.27% |
| Extra-ordinary / unusual items | – | – | – |
| Profit before taxation | 19,522,460 | 16,673,917 | 17.08% |
| Taxation | (9,290,386) | (6,048,049) | 53.61% |
| Profit after taxation | 10,232,074 | 10,625,868 | -3.71% |
| Earnings per share – Basic and Diluted (in Rupees) | 9.21 | 9.56 | – |
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Posted on: 2024-04-25T15:40:40+05:00
