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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