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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