August 17, 2020 (MLN): Bank Al Habib Limited has recorded profits of Rs. 7.24 billion (EPS: 6.52) for the half year ended June 30, 2020, showing a growth of 63% as compared to the same period of last year.
The growth in earnings was led by a 39% improvement in net interest income on account of delays in asset-liability repricing, as well as an upturn witnessed in share of profit from associates. The bank, however, disappointed in terms of lower income from forex, dividend, and commission.
According to a report by Next Capital, Fee and commission income took a hit due to the COVID-19 outbreak, which had resulted in an economic slowdown.
On the contrary, the overall expenses surged by 28% on the back of higher operating expenses and workers welfare fund. The non-core expenses, nonetheless, tumbled by almost 99%.
While not completely in line, the company somewhat managed to meet the expectations set by market spectators.
|
Financial Results for half year ended June 30, 2020 (Rupees'000) |
|||
|---|---|---|---|
|
Jun-20 |
Jun-19 |
% Change |
|
|
Mark-up / return / interest earned |
65,380,723 |
45,055,051 |
45% |
|
Mark-up / return / interest expensed |
(38,302,576) |
(25,523,240) |
50% |
|
Net mark-up / interest income |
27,078,147 |
19,531,811 |
39% |
|
NON-MARK-UP / INTEREST INCOME |
|||
|
Fee and commission income |
3,061,634 |
3,029,148 |
1% |
|
Dividend income |
144,195 |
139,338 |
3% |
|
Foreign exchange income |
810,759 |
1,078,675 |
-25% |
|
Income / (loss) from derivatives |
|||
|
Gain / (loss) on securities – net |
17 |
(65,786) |
|
|
Share of profit from associates |
42,398 |
37,333 |
14% |
|
Other income |
288,369 |
289,932 |
-1% |
|
Total non-markup / interest income |
4,347,372 |
4,508,640 |
-4% |
|
Total income |
31,425,519 |
24,040,451 |
31% |
|
NON-MARK-UP / INTEREST EXPENSES |
|||
|
Operating expenses |
(16,844,301) |
(13,104,959) |
29% |
|
Workers welfare fund |
(289,656) |
(217,113) |
33% |
|
Other charges |
(502) |
(34,481) |
-99% |
|
Total non-markup / interest expenses |
(17,134,459) |
(13,356,553) |
28% |
|
Profit before provisions |
14,291,060 |
10,683,898 |
34% |
|
Provisions and write offs – net |
(2,198,638) |
(2,154,210) |
2% |
|
Extraordinary / unusual items |
|||
|
PROFIT BEFORE TAXATION |
12,092,422 |
8,529,688 |
42% |
|
Taxation |
(4,848,777) |
(4,087,080) |
19% |
|
PROFIT AFTER TAXATION |
7,243,645 |
4,442,608 |
63% |
|
Earnings per share |
6.52 |
4 |
63% |
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