Bank Al-Habib's profits depict a marginal decrease of 1%

By MG News | January 30, 2019 at 03:13 PM GMT+05:00

0:00

January 30, 2019 (MLN): Bank Al-Habib Limited has reported marginal decrease of 1% in its bottom-line earnings for the period ended December 31, 2018.

Despite a growth in the company’s net markup and non-mark-up income by 21% and 12% respectively, the company still failed to mark any significant improvement in terms of profitability. This was due to a counter increase in the company’s mark-up and non-mark-up by 22% and 17% respectively.

However, the bank did not plunge as low as the market was expecting as it reported profits of Rs. 8.4 billion against an estimated amount of Rs 7.8 billion by JS Global, and Rs 7.6 billion by Taurus Securities.

Even though the reasons provided by these research houses regarding higher base effect from capital gains and reversals under provisioning expenses booked during CY17 did occur to some extent, the company still managed to outperform the market expectations.

Bank Al-Habib reported its Earnings per share at Rs. 7.61 for the said period. Moreover, the Board of Directors announced a final cash dividend at Rs. 2.5 per share i.e. 25%.

Profit and loss account for the year ended December 31 2018 (Rupees'000)
	Dec-18	Dec-17	% Change
Mark-up / return / interest earned	60,743,247	50,320,755	21%
Mark-up / return / interest expensed	-29,838,696	-24,384,711	22%
Net mark-up / interest income	30,904,551	25,936,044	19%

NON MARK-UP / INTEREST INCOME
Fee and commission income	4,150,773	3,182,495	30%
Dividend income	409,895	410,105	0%
Foreign exchange income	1,631,947	913,950	79%
(Loss) / gain on securities	-10,316	2,795,736	-100%
Share of profit from associates	61,819	33,171	86%
Other income	939,712	862,475	9%
Total non-markup / interest income	7,183,830	8,197,932	-12%
Total income	38,088,381	34,133,976	12%

NON MARK-UP / INTEREST EXPENSES
Operating expenses	-23,263,767	-19840519	17%
Workers welfare fund	-294,534	-286938	3%
Other charges	-3,517	-36,474	-90%
Total non-markup / interest expenses	-23,561,818	-20,163,931	17%
Profit before provisions	14,526,563	13,970,045	4%
Provisions and write offs - net	-220,748	-67,830	225%
PROFIT BEFORE TAXATION	14,305,815	13,902,215	3%
Taxation	-5,853,160	-5,396,957	8%
PROFIT AFTER TAXATION	8,452,655	8,505,258	-1%
Earnings per share- Basic and diluted	7.61	7.65	-1%

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