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

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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Posted on: 2019-01-30T15:13:00+05:00

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