Earning Review: HBL’s earnings wither by 10% in 9MFY19

October 15, 2019 (MLN): Habib Bank Limited has announced its financial results for the nine months ended on September 30, 2019, as per which, it has posted net profits of Rs. 8.8 billion (EPS: Rs. 5.89), i.e. around 10.9% lower than the same period of last year.

While the markup interest income of the bank depicted positive growth due to higher yields, the non-markup interest income slumped by 4.3% on account of losses associated with hedging instruments and sale of securities.

The operating expenses of the bank surged by 22% as a result of ongoing business transformation.

An interim Cash Dividend for the quarter ended on September 30, 2019 was also announced at Rs. 1.25 per share, i.e. 12.5%. This is in addition to the interim Cash Dividend already paid at Rs. 2.5 per share i.e. 25%.

Consolidated Profit and Loss Account for the nine months ended September 30,2019 (Rupees '000)

 

Sep-19

Sep-18

% Change

Mark-up/return/profit/interest earned

182,631,441

117,074,265

56.00%

Mark-up/return/profit/interest expensed

108,573,082

56,962,724

90.60%

Net mark-up/return/profit/interest income

74,058,359

60,111,541

23.20%

Non mark-up/interest income

   

Fee, commission and brokerage income

15,456,596

12,739,687

21.33%

Dividend income

367,646

636,969

-42.28%

Share of profits of associates and joint venture

2,212,652

2,324,938

-4.83%

Foreign Exchange Income

302,575

444,090

-31.87%

(Loss) / income from derivatives

(657,532)

(361,337)

81.97%

(Loss) / gain on securities

(2,411,531)

357,300

 

Other income

506,627

354,547

42.89%

Total non-mark-up /interest income

15,777,033

16,496,194

-4.36%

Total Income

89,835,392

76,607,735

17.27%

Non mark-up/interest expenses

   

Operating expenses

(68,969,691)

(56,266,809)

22.58%

Other charges

(404,057)

(465,994)

-13.29%

Workers' Welfare Fund

(393,094)

(330,051)

19.10%

Total non-mark-up/interest expenses

(69,766,842)

(57,062,854)

22.26%

Profit/(loss) before taxation

20,068,550

19,544,881

2.68%

Provision and write offs-net

(1,783,344)

(1,863,380)

 

Taxation

(9,460,517)

(7,771,355)

21.74%

Profit/(loss) after taxation

8,824,689

9,910,146

-10.95%

Earnings per share – basic and diluted (Rupees)

5.89

6.57

-10.35%

 

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Posted on: 2019-10-15T13:14:00+05:00

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