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
