BAHL’s quarterly profits up by 6.6% to Rs4.9bn

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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Posted on: 2022-04-19T14:16:49+05:00

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