Habib Metro Bank reports Rs26bn profit in 2024, declares dividend

February 20, 2025 (MLN): Habib Metropolitan Bank Limited (PSX: HMB) has reported its financial results for the year ended December 31, 2024, reporting a profit after taxation of Rs26 billion, reflecting a 2% increase compared to Rs25bn in 2023.

HMB also declared a final cash dividend of Rs4.5 per share (45%), bringing the total dividend payout for the year to Rs12 per share (120%), including the interim dividends of Rs7.5 per share (75%) already disbursed.

The bank’s basic and diluted Earnings Per Share (EPS) stood at Rs23.8, compared to Rs23.44 in 2023.

The bank's profit before taxation stood at Rs54.1bn, marking a 1.84% rise from the previous year.

HMB’s total income for the year amounted to Rs93.8bn, registering a 6% increase from Rs88.6bn in 2023.

This was driven by a 39% growth in total non-mark-up/interest income, which surged to Rs21.4bn, up from Rs15.4bn in the prior year.

The key contributors to this growth were foreign exchange income, fee and commission income, and dividend income, which rose 36.3%, 14.5%, and 17.8%, respectively.

The bank's net mark-up/interest income stood at Rs72.4bn, reflecting a 1% decline from Rs73.2bn in 2023.

Despite an increase of 15.2% in mark-up/return/interest earned, which reached Rs241.2bn, the bank faced a 23.9% surge in mark-up/return/interest expenses, totaling Rs168.7bn.

HMB’s operating expenses grew by 16.9% to Rs34bn, compared to Rs29.1bn in 2023, while the bank allocated Rs1.2bn towards the Workers’ Welfare Fund, a 5% increase from the prior year.

Total non-mark-up/interest expenses stood at Rs35.4bn, reflecting a 16.5% increase year-over-year.

Credit loss allowance and write-offs for the year declined 15%, reducing to Rs4.3bn from Rs5.1bn in 2023, demonstrating improved asset quality and risk management practices.

The bank’s taxation expense for the year amounted to Rs28.3bn, up 1.6% from Rs27.8bn last year.

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