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HBL achieves record profit of Rs57.76bn in 2023, increases dividend payouts

SBP clears Muhammad Nassir Salim as president
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February 23, 2024 (MLN): Habib Bank Limited (PSX: HBL) recorded its highest profit of Rs57.76 billion [EPS: 39.32], compared to Rs34.4bn [EPS: 23.23] earning recorded in the Same Period Last Year (SPLY), bank’s filing on PSX revealed today.

Along with the financial results for 2023, the Board of Directors (BoD) of HBL has recommended a final cash dividend of Rs4 per share i.e.40%.

This is in addition to an interim cash dividend of Rs5.75 per share i.e. 57.5% already paid by the bank.

Going by the income statement, the bank witnessed an increase of 46.25% YoY in its net interest income (NII) to stand at Rs242.13bn, compared to Rs165.56bn in SPLY.

The surge in NII is due to a jump in interest-earning (Rs712.35bn), up by 63.34% YoY.

The record-high interest rates reaching 22% in 2023 have emerged as the primary factor behind the banking sector's substantial profits.

During the period under review, the bank’s total non-markup income also increased by 22.94% YoY to Rs57.45bn, owing to a massive jump of 34.08% YoY in fee, commission, and brokerage income to stand at Rs42.25bn for 2023.

Under the non-markup income, HBL’s net foreign exchange income plunged 61.64% YoY to Rs4.6bn during the review period.

On the expense side, the total non-markup expenses increased by 36.27% YoY to Rs172.77bn in 2023 compared to Rs126.78bn in 2022.

The increase was attributed to substantial rise in the bank’s operating expenses from Rs124.81bn in 2022 to Rs170.13bn in 2023.

Additionally, the bank’s expenses related to the Workers' Welfare Fund also went up during the review period.

The profit and loss statement further shows that the provision expense of the bank increased by 56.4% YoY to Rs13.27bn during the review period, compared to Rs8.48bn recorded in 2022.

On the tax front, the bank paid Rs55.79bn, 30.87% YoY higher than the amount paid in 2022.

Consolidated Profit and Loss Account for the year ended December 31, 2023 (Rupees '000)
  Dec-23 Dec-22 % Change
Mark-up/return/profit/interest earned 712,345,078 436,101,037 63.34%
Mark-up/return/profit/interest expensed 470,212,037 270,538,340 73.81%
Net mark-up/return/profit/interest income 242,133,041 165,562,697 46.25%
Non mark-up/interest income      
Fee, commission and brokerage income 42,250,183 31,510,143 34.08%
Dividend income 2,300,969 1,508,643 52.52%
Share of profit of associates and joint venture 4,422,695 3,028,453 46.04%
Foreign exchange income 4,604,262 11,947,416 -61.46%
Loss from derivative securities (1,545,453) -2,618,084 -40.97%
Gain/ (loss) on sale of securities – net 945,981 866,175 9.21%
Other income 4,472,468 488,991 814.63%
Total non mark-up /interest income 57,451,105 46,731,737 22.94%
Total income 299,584,146 212,294,434 41.12%
Non mark-up/interest expenses  
Operating expenses 170,130,095 124,807,455 36.31%
Workers' Welfare Fund 2,282,323 1,498,693 52.29%
Other charges 354,953 476,587 -25.52%
Total non mark-up/interest expenses 172,767,371 126,782,735 36.27%
Profit before provisions and taxation 126,816,775 85,511,699 48.30%
Provisions and write offs-net 13,265,779 8,481,761 56.40%
Profit before taxation 113,550,996 77,029,938 47.41%
Taxation 55,793,580 42,631,608 30.87%
Profit after taxation 57,757,416 34,398,330 67.91%
Earnings per share – basic and diluted (Rupees) 39.32 23.23

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Posted on: 2024-02-23T12:50:50+05:00