March 19, 2022 (MLN): Bank Al-Habib Limited (BAHL) has recorded a consolidated net profit of Rs4.94 billion (EPS: Rs4.45) during the first quarter of the current calendar year, showing an increase of 6.58% YoY compared to Rs4.63bn (EPS: Rs4.17) in the corresponding period last year.
This muted growth in profitability is due to provision charges, however, net interest income (NII) and notable growth in non-funded income (NFI) supported the bottom line.
Going by the financial results, the bank’s interest income went up by 32% YoY while interest expenses surged by around 42% YoY, hence BAHL’s net interest income (NII) stood at Rs16bn, witnessing a jump of 22% YoY due to higher interest rates.
While non-funded income (NFI) of the bank observed a 29% YoY increase to Rs4.2bn. Improved transactional volumes and diversification of revenue streams supplemented a growth of 22% in fee income whereas dividend and capital gain increased by 3x and 40x YoY, respectively.
On the provision side, the bank reported a provision of Rs156mn in 1QCY22 when compared to a reversal of Rs245mn reported in 1QCY21, restricting its bottom line.
On the tax front, the effective tax rate stood at 40% from 35% in 1QCY21.
|
Consolidated Profit and Loss Account for the three months ended March 31, 2022 (Rupees in '000) |
|||
|---|---|---|---|
|
|
Mar-22 |
Mar-21 |
% Change |
|
Mark-up/return/interest earned |
34,193,065 |
25,942,248 |
31.80% |
|
Mark-up/return/interest expensed |
(18,169,622) |
(12,829,815) |
41.62% |
|
Net mark-up/return/interest income |
16,023,443 |
13,112,433 |
22.20% |
|
NON-MARK-UP/INTEREST INCOME |
|
|
|
|
Fee and commission income |
2,842,253 |
2,322,460 |
22.38% |
|
Dividend income |
204,504 |
61,183 |
234.25% |
|
Foreign exchange income |
585,043 |
649,786 |
-9.96% |
|
Income/(loss) from derivatives |
– |
– |
– |
|
Gain on securities – net |
158,287 |
3,930 |
3927.66% |
|
Share of profit from associates |
173,828 |
47,895 |
262.94% |
|
Other income |
232,013 |
163,477 |
41.92% |
|
Total non-mark-up/interest income |
4,195,928 |
3,248,731 |
29.16% |
|
Total Income |
20,219,371 |
16,361,164 |
23.58% |
|
NON-MARK-UP/INTEREST EXPENSES |
|
|
|
|
Operating expenses |
(11,725,626) |
(9,360,216) |
25.27% |
|
Worker’s welfare fund |
(167,824) |
(144,771) |
15.92% |
|
Other charges |
(251) |
(783) |
-67.94% |
|
Total non-mark-up/interest expenses |
(11,893,701) |
(9,505,770) |
25.12% |
|
Profit before provisions |
8,325,670 |
6,855,394 |
21.45% |
|
(Provisions)/ reversals and write offs – net |
(156,183) |
245,444 |
– |
|
Extra-ordinary / unusual items |
– |
– |
|
|
Profit before taxation |
8,169,487 |
7,100,838 |
15.05% |
|
Taxation |
(3,231,616) |
(2,467,793) |
30.95% |
|
Profit after taxation |
4,937,871 |
4,633,045 |
6.58% |
|
Earnings per share – Basic and Diluted (in Rupees) |
4.45 |
4.17 |
6.71% |
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