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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