Habib Metro Bank sees slight rise in profit

April 23, 2025 (MLN): Habib Metropolitan Bank Limited (PSX: HMB) has reported its financial results for the current period, posting a profit after taxation of Rs6.24 billion, showing a nearly 2% increase compared to Rs6.12bn in the same period last year.

The bank has declared an interim cash dividend of Rs2.5 per share, i.e., 25%

The bank's basic and diluted Earnings Per Share (EPS) stood at Rs5.8, compared to Rs5.68 in the previous period, reflecting a 2.11% rise.

Profit before taxation rose by around 11.5% to Rs13.26bn from Rs11.9bn in the prior period.

Total income during the period increased by 14.52% to Rs23.53bn, driven largely by strong growth in non-mark-up/interest income.

Non-mark-up/interest income surged by nearly 46% to Rs5.45bn, compared to Rs3.74bn in the same period last year.

Key contributors to this growth included a 55.25% rise in foreign exchange income, a 15.16% increase in fee and commission income, and nearly 30% higher dividend income.

Net mark-up/interest income also posted growth of 7.6%, amounting to Rs18.08bn, despite a 28.78% drop in mark-up/return/interest earned, which fell to Rs42.78bn.

The bank’s mark-up/return/interest expense decreased significantly by 42.9% to Rs24.7bn.

Operating expenses increased by 25.1% to Rs9.3bn, while the bank allocated Rs267.5m to the Workers’ Welfare Fund, marking a 9.4% rise.

Total non-mark-up/interest expenses climbed by 23.67% to Rs9.58bn.

Credit loss allowance and write-offs declined by 23.9% to Rs678m, down from Rs892m, indicating improved credit quality.

The bank’s taxation expense stood at Rs7.02bn, up 21.5% from the previous period’s Rs5.78bn.

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