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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