Habib Bank Ltd. profits fall 77.80 percent to Rs. 7.064 billion

Habib Bank Limited today posted financial results for the year ending December, 2017. Habib Bank posted a 3.41 percent increase in net mark-up interest earned during the period which clocked in at 142.510 billion against 137.807 billion during 2016.

The results show a 26 percent jump in Dividend Income with total at Rupees 2.15 billion and a 64.07 percent increase in gain on sale of securities which fetched in Rupees 8.185 billion for the bank.

In the releases, the bank also mentioned the payment of Rs. 23.717 billion to New York State Department of Financial Services which was agreed upon in an out of court settlement during last year when the NYSDFS had opened an investigation into some of financial transactions carried out by Habib Bank Ltd from its New York Branch. The State Department had alleged that the transactions were dubious and involved terrorists, money launderers and smugglers. NYSDFS slapped a ban on HBL New York branch ordering the bank to shut down its New York operations coupled with a hefty fine of 23.717 billion PKR ~ 214 million USD.

The Management managed to post a profit before the payment of extraordinary and unusual items (NYSDFS Fine) at Rupees 52.530 billion against 56.524 billion; 7.07 percent lower than 2016’s tally and a profit after taxation of Rupees 7.064 billion down by 77.80% against 31.820 billion in 2016.The company posted earnings per share at Rupees 4.82 per share, while declaring a final cash dividend of Rupees 1 per share i.e. 10 percent.  

Comparison of Key Financials

Unconsolidated Profit and Loss Account – For the Year Ended, December 30th 2017

Key Financials

2017

2016

% Change

 

Amounts in PKR ‘000

Net mark-up/return/interest earned

142,510,065

137,807,927

3.41%

Net mark-up/return/interest earned after provisions

79,263,399

78,651,548

0.78%

Fee, commission and brokerage income

17,510,919

17,606,347

-0.54%

Dividend Income

2,150,770

1,706,704

26.02%

Income from Foreign Currencies

946,133

980,098

-3.47%

Capital gain on sale of securities – net

8,185,338

4,988,890

64.07%

Other income

1,006,458

589,075

70.85%

Total non-mark-up/interest income

29,726,292

25,859,057

14.96%

Administrative Expenses

59,601,106

50,917,849

17.05%

Other provisions – net

494,318

174,161

183.83%

Other charges/reversals

31,336

106,332

-70.53%

Total non-mark-up/interest expenses

58,458,050

52,264,566

11.85%

Profit before extra-ordinary/unusual item and taxation

52,530,595

56,524,911

-7.07%

Extraordinary/unusual item – settlement payment to NYSDFS

(23,717,115)

 

 

Profit before Taxation

26,814,526

52,246,039

-48.68%

Taxation

19,750,126

20,425,820

-3.31%

Profit after Taxation

7,064,400

31,820,219

-77.80%

EPS – Basic and diluted

4.82

21.69

-77.78%

Company release on Earnings Report can be accessed here.

Posted on: 2018-03-19T15:20:00+05:00