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

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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Posted on: 2020-10-23T13:19:00+05:00

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