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% |
Copyright Mettis Link News
32186
