Bank Al Habib fails to meet market expectation

MG News | August 21, 2019 at 02:54 PM GMT+05:00

0:00

August 21, 2019 (MLN): Bank Al Habib Limited (BAHL)’s semiannual bottom line profit has hopped up by 5.44% on account of a larger growth in inflows than outflows.

The Bank announced its net income for the period ended June 30, 2019 at Rs.4.44 billion (EPS: Rs.4 per share)

As per market’s expectation, the net interest income (Rs.19.5 billion) grew by 30.9% on the back of rising interest rates, as asset yields generally get repriced with a delay of a few months whereas liabilities are generally quicker to adjust to change in interest rates.

In addition to this, the increase in BAHL’s fee income fueled up the growth in fee, commission and brokerage income.

However, since the tax expenses (Rs.4 billion) grew substantially by over 40%, the overall net profit grew by a much smaller margin than it could have.

Consolidated Profit and Loss Account for the half year ended June 30th 2019 (Rupees in '000)
	Jun-19	Jun-18	% Change
Mark-up/return/interest earned	45,055,051	27,380,349	64.55%
Mark-up/return/interest expensed	(25,523,240)	(12,460,720)	104.83%
Net mark-up/return/interest income	19,531,811	14,919,629	30.91%
NON MARK-UP/INTEREST INCOME
Fee, commission and brokerage income	2,879,757	2,233,380	28.94%
Dividend income	139,338	161,613	-13.78%
Foreign exchange income	1,078,675	645,186	67.19%
Income/(loss) from derivatives	-	-
(Loss)/ gain on securities	(65,786)	27,179
Share of profit from associates	37,333	33,020	13.06%
Other income	289,932	213,970	35.50%
Total non-mark-up/interest income	4,359,249	3,314,348	31.53%
Total Income	23,891,060	18,233,977	31.02%
NON MARK-UP/INTEREST EXPENSES
Operating expenses	(12,955,568)	(11,095,389)	16.77%
Workers welfare fund	(217,113)	(147,808)	46.89%
Other charges	(34,481)	(2,551)	1251.67%
Total non-mark-up/interest expenses	(13,207,162)	(11,245,748)	17.44%
Profit before provisions	10,683,898	6,988,229	52.88%
(Provisions)/reversals and write offs - net	(2,154,210)	114,054
Extra-ordinary / unusual items	-	-
Profit before taxation	8,529,688	7,102,283	20.10%
Taxation	(4,087,080)	(2,888,707)	41.48%
Profit after taxation	4,442,608	4,213,576	5.44%
Earnings per share - Basic and Diluted (in Rupees)	4.00	3.79	5.54%

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