February 20, 2019 (MLN): Habib Bank Limited (HBL) has realized an upsurge of 40% in bottom-line earnings for Calendar Year 2018, as it recorded its net income at Rs.12.4 billion and EPS at Rs.8.22, up from Rs.8.8 billion (EPS:Rs.5.79) recorded last year.
The saving grace for the bank was the reduction in taxes by Rs.11 billion i.e. 55%, which helped in stabilizing the financial position of the company.
HBL’s results are in line with the market’s expectation of vast improvement over the year, however the projection closest to the actual results was made by JSL which estimated a rise of 54% in net gains.
The market had attributed this improvement in profitability to lower base in last year as a result of hefty penalty of Rs.23.5 billion.
The financial statement released shows that HBL’s Net mark-up / return / profit / interest income diminished marginally, while Total non-mark-up / interest income dropped by 41% over the year.
Moreover, the pretax profits observed a contraction of 26.8% but the hefty decline in taxation served in favor of HBL and led to a remarkable result.
In addition to this, a final Cash Dividend at Rs.1.25 per share was announced, that is, 12.5%. This is in addition to the Interim Dividend already paid at Rs.3 per share i.e. 30%.
Profit and loss account for the year ended December 31 2018 (Rupees'000) |
|||
---|---|---|---|
|
Dec-18 |
Dec-17 |
% Change |
Mark-up / return / profit / interest earned |
165,282,752 |
148,010,269 |
11.67% |
Mark-up / return / profit / interest expensed |
83,605,886 |
66,177,013 |
26.34% |
Net mark-up / return / profit / interest income |
81,676,866 |
81,833,256 |
-0.19% |
Non mark-up I interest income |
|
|
|
Fee and commission income |
18,024,117 |
19,519,052 |
-7.66% |
Dividend income |
985,867 |
1,219,610 |
-19.17% |
Share of profit of associates and joint venture |
2,722,983 |
2,051,887 |
32.71% |
Foreign exchange (loss) / income |
-2,397,975 |
2,753,305 |
-187.09% |
(Loss) / income from derivatives |
-907,201 |
181,376 |
-600.18% |
Gain on securities – net |
1,029,880 |
7,764,681 |
-86.74% |
Other Income |
436377 |
625737 |
-30.26% |
Total non-mark-up / interest income |
19,894,045 |
34,115,648 |
-41.69% |
Total Income |
101,570,911 |
115,948,904 |
-12.40% |
Non mark-up / interest expenses |
|
|
|
Operating expenses |
77,380,215 |
61,300,444 |
26.23% |
Workers' Welfare Fund |
-2,898,437 |
1,039,582 |
-378.81% |
Other charges |
495,726 |
31,356 |
1480.96% |
Total non-mark-up / interest expenses |
74,977,504 |
62,371,382 |
20.21% |
Profit before provisions, extra ordinary / unusual item and taxation |
26,593,407 |
53,577,522 |
-50.36% |
Provisions and write offs – net |
5,008,578 |
373,557 |
1240.78% |
Extraordinary / unusual items |
|
23,717,115 |
-100.00% |
Profit before taxation |
21,584,829 |
29,486,850 |
-26.80% |
Taxation |
9,143,886 |
20,638,576 |
-55.70% |
Profit after taxation |
12,440,943 |
8,848,274 |
40.60% |
Basic and diluted earnings per share |
8.22 |
5.79 |
41.97% |
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