Bank Al Habib’s augmented outlay and reduced gains weighed down overall profits

October 18, 2018 (MLN): Bank Al-Habib’s consolidated profits during the nine month period ended on September 30, 2018 have toppled over slightly by 5.2%, as compared to the same period last year.

In line with the contents of it’s financial earning report, Bank Al-Habib’s net mark-up/interest income after provisions recorded a fortunate rise of 17% or Rs.3.3 billion during the period.

However, as the net gains on sale/redemption of securities hit rock bottom, the total non-mark-up/interest income came down by 23% of Rs.1.5 billion.

In addition to this, administrative expenses rose by Rs.2.4 billion, pulling the total non-mark-up/interest expenses up, by 14.3%.

The collective impact of these changes brought about a decline of Rs.324.2 million in post-tax profits.

Apart from this, there has been a marginal slip of Rs.0.28 per share in basic and diluted earnings per share as they stood in at Rs.5.35 per share.

 

Consolidated Profit and Loss Account for the nine month period ended September 30th 2018 (Rupees in '000)

 

Sep-18

Sep-17

% Change

Mark-up/return/interest earned

                     42,850,747

                     37,225,946

15.11%

Mark-up/return/interest expensed

                  (20,326,568)

                  (18,018,639)

12.81%

Net mark-up/return/interest income

                     22,524,179

                     19,207,307

17.27%

(Provision)/reversal against non-performing loans and advances – net

                           197,182

                        (140,436)

 

Provision for diminution in the value of investments

                        (395,949)

                           (25,892)

1429.23%

Bad debts written off directly

                                      –  

                                      –  

 

Net mark-up/interest income after provisions

                     22,325,412

                     19,040,979

17.25%

NON MARK-UP/INTEREST INCOME

 

 

 

Fee, commission and brokerage income

                       3,048,626

                       2,393,453

27.37%

Dividend income

                           302,353

                           265,992

13.67%

Income from dealing in foreign currencies

                       1,034,004

                           664,072

55.71%

Gain/(loss) on sale/redemption of securities – net

                             23,454

                       2,638,342

-99.11%

Unrealized gain/(loss) or revaluation of investments classified as “held-for-trading” – net

                                      –  

                             (9,941)

 

Share of profit from associates

                             55,069

                             31,046

77.38%

Other income

                           674,364

                           690,132

-2.28%

Total non-mark-up/interest income

                       5,137,870

                       6,673,096

-23.01%

NON MARK-UP/INTEREST EXPENSES

 

 

 

Administrative expenses

                  (17,334,812)

                  (14,895,063)

16.38%

Other (provisions)/reversals/write-offs

                             42,320

                           (17,993)

 

Other charges

                        (207,993)

                        (401,589)

-48.21%

Total non-mark-up/interest expenses

                  (17,500,485)

                  (15,314,645)

14.27%

Extra-ordinary / unusual items

                                      –  

                                      –  

 

Profit before taxation

                       9,962,797

                     10,399,430

-4.20%

Taxation

                     (4,024,416)

                     (4,136,804)

-2.72%

Profit after taxation

                       5,938,381

                       6,262,626

-5.18%

Earnings per share – Basic and Diluted (in Rupees)

                                  5.35

                                  5.63

-4.97%

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Posted on: 2018-10-18T14:57:00+05:00

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