Habib Metro Bank sees a 65% rise in earnings owing to higher NII

MG News | October 23, 2020 at 01:19 PM GMT+05:00

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October 23, 2020 (MLN): Habib Metropolitan Bank has made profits of Rs. 8.5 billion during the nine months ended September 30, 2020, i.e. around 61% higher than the figures reported in the same period of last year.

The Earnings per share for the same period stood at Rs. 7.94, which is around 65% higher than the EPS of Rs. 4.81 recorded in the same period of last year.

The Bank also announced an Interim Cash Dividend for the quarter and nine months ended September 30, 2020, at Rs. 2 per share i.e. 20%.

The growth in earnings was mainly led by a 51% growth in net interest income, which in turn was a result of higher interest income earned during the period. The bank also managed to lift its non-interest income by 21% on account of higher dividend income as well as foreign exchange gains.

The rise in operating expenses by % and workers' welfare fund by 83% was somewhat compensated for via a decline in non-core expenses by 38%.

The major setback that Habib Metro faced during the period under review was the 5.76x increase in provisions, from Rs. 295 million to Rs. 1.9 billion.

Consolidated Financial Results for nine months ended September 30, 2020 (Rupees'000)
	Sep-20	Sep-19	% Change
Mark-up / return / interest earned	60,093,440	51,619,340	16%
Mark-up / return / interest expensed	(40,053,744)	(38,305,982)	5%
Net mark-up / interest income	20,039,696	13,313,358	51%
NON MARK-UP / INTEREST INCOME
Fee and commission income	3,932,893	3,895,996	1%
Dividend income	136,248	66,618	105%
Foreign exchange income	3,029,153	2,680,476	13%
Income / (loss) from derivatives
Gain / (loss) on securities - net	(99,826)	(865,344)	-88%
Other income	44,982	38,922	16%
Total non-markup / interest income	7,043,450	5,816,668	21%
Total income	27,083,146	19,130,026	42%
NON MARK-UP / INTEREST EXPENSES
Operating expenses	(10,645,111)	(9,599,945)	11%
Workers welfare fund	(325,185)	(177,985)	83%
Other charges	(31,980)	(51,340)	-38%
Total non-markup / interest expenses	(11,002,276)	(9,829,270)	12%
Profit before provisions	16,080,870	9,300,756	73%
Provisions and write offs - net	(1,999,253)	(295,907)	576%
Extraordinary / unusual items
PROFIT BEFORE TAXATION	14,081,617	9,004,849	56%
Taxation	(5,554,249)	(3,724,221)	49%
PROFIT AFTER TAXATION	8,527,368	5,280,628	61%
Earnings per share	7.94	4.81	65%

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