Bank Al Habib reports 50% profit surge, announces Rs3.5 dividend

August 07, 2024 (MLN): Bank AL Habib Limited (PSX: BAHL) earned Rs11.38 billion [EPS: Rs10.24] in 2Q CY24, reflecting a massive growth of 50.1% YoY, compared to the Rs7.58bn [EPS: Rs6.83] profit in the same quarter last year.

Driven by the massive surge in profits, the board of directors of BAHL has announced an interim cash dividend at Rs3.5 per share.

This is in addition to the interim cash dividend already paid at Rs3.5 per share.

Going by the income statement, the bank witnessed an increase of 41.8% in its net interest income (NII) to stand at Rs37.29bn. The growth in NII is due to a jump in interest-earning (Rs123.22bn), up by 42.59%YoY.

Similarly, the bank’s total Non-Markup income rose 27.96% YoY to Rs7.19bn due to a significant jump in fee and commission income to clock in at Rs5.55bn as compared to Rs3.81bn in Q2 CY23.

Another crucial element of BAHL's other income was its share of profit from associates, which experienced a significant increase of 28.97% during the review period, reaching Rs353.82m.

Conversely, the Foreign exchange income of the bank dropped by 12.52% YoY to Rs975.84m in Q2 CY24.

In the expense section, the total expenses rose to Rs22.16bn compared to Rs17.6bn in SPLY, depicting an increase of 25.9%.

In addition, the bank incurred a provision expense worth Rs517.35m during the review period, compared to the provision reversal of Rs141.82m recorded in the corresponding period last year.

On the tax front, the bank paid Rs10.43bn, 51.56% YoY higher than the amount paid in Q2 CY23.

Copyright Mettis Link News