Habib Metro’s soaring administrative expenses fail to hinder bottom-line growth

October 25, 2018 (MLN): Habib Metropolitan Bank (HMB) has earned Rs.1.3 billion higher profits during the three quarters ended on September 30, 2018, over the corresponding period of prior year.

HMB’s official report on its financial earnings has shown that the company earned Rs.1.7 billion higher net mark-up/interest income after provisions, during the period.

Meanwhile, as some non-mark-up/interest inflows rose, others suffered a decline. The net effect of all led to an 8.9% increase in total non-mark-up/interest income.

On the flip side, administrative expenses mounted substantially, by Rs.662 million.

Fortunately for HMB, the inflows outshone the outflows as the Bank made reassuring profits during the period (+39%).

Habib Metropolitan Bank’s basic and diluted earnings per share have increased from Rs.3.11 per share to Rs.4.32 per share.

Profit and Loss Account for the nine months ended on September 30th 2018 (Rupees in '000)

 

Sep-18

Sep-17

% Change

Mark-up/return/interest earned

                     30,562,758

                     24,695,877

23.76%

Mark-up/return/interest expensed

                  (18,810,669)

                  (14,309,188)

31.46%

Net mark-up/interest income

                     11,752,089

                     10,386,689

13.15%

Provision against non-performing loans and advances – net

                           333,095

                           643,122

-48.21%

Provision for diminution in the value of investments – net

                             55,013

                             84,749

-35.09%

Bad debts written off directly

                                      –  

                                      –  

 

Net mark-up/interest income after provisions

                     11,363,981

                       9,658,818

17.65%

NON MARK-UP/INTEREST INCOME

 

 

 

Fee, commission and brokerage income

                       2,757,475

                       2,526,593

9.14%

Dividend income

                             60,509

                           395,734

-84.71%

Income from dealing in foreign currencies – net

                       1,126,667

                           800,063

40.82%

Gain on sale/redemption of securities – net

                             97,499

                           307,079

-68.25%

Unrealized gain/(loss) or revaluation of investments classified as “held-for-trading” – net

                                      –  

                                      –  

 

Other income

                           531,656

                           171,613

209.80%

Total non-mark-up/interest income

                       4,573,806

                       4,201,082

8.87%

NON MARK-UP/INTEREST EXPENSES

 

 

 

Administrative expenses

                       8,478,839

                       7,816,648

8.47%

Other provisions/write-offs

                           (39,520)

                           153,000

 

Other charges

                           159,172

                           147,145

8.17%

Total non-mark-up/interest expenses

                       8,598,491

                       8,116,793

5.93%

Extra-ordinary / unusual items

                                      –  

                                      –  

 

Profit before taxation

                       7,339,296

                       5,743,107

27.79%

Taxation

                     (2,808,729)

                     (2,487,458)

12.92%

Profit after taxation

                       4,530,567

                       3,255,649

39.16%

Earnings per share – Basic and Diluted (in Rupees)

                                  4.32

                                  3.11

38.91%

 

Copyright Mettis Link News

Posted on: 2018-10-25T10:22:00+05:00

23862