April 20, 2021 (MLN): Habib Bank Limited (HBL) has witnessed a 2.1x YoY increase in net profits to Rs8.5 billion for the 1st quarter ended March 21, 2021, as against the profits of Rs4.1 billion in the same quarter a year ago.
The earnings per share of the company clocked in at Rs5.68 per share compared to Rs2.79 per share in Jan-March 2020 quarter.
Alongside financial results, the Bank also announced an interim cash dividend of Rs 1.75 per share i.e. 17.5% for the quarter under review.
According to the financial statement issued by the HBL, the surge in profitability was attributed to lower operating expenses which went down by 6.78% YoY, and improvement in Net Interest Income (NII) by 16% YoY.
The increase in NII was mainly due to an increase in HBL’s asset base and lower cost of deposits.
Furthermore, higher fee income (up by 25% YoY) and Rs895.8mn gain on FX reserves compared to the exchange loss of Rs 1.19bn last year, have lifted HBL’s non-interest income by 42.3% YoY.
|
Consolidated Profit and Loss Account for the Quarter ended March 31, 2021 (Rupees '000) |
|||
|---|---|---|---|
|
|
Mar-21 |
Mar-20 |
% Change |
|
Mark-up/return/profit/interest earned |
63,462,902 |
72,645,814 |
-12.64% |
|
Mark-up/return/profit/interest expensed |
30,993,628 |
44,632,354 |
-30.56% |
|
Net mark-up/return/profit/interest income |
32,469,274 |
28,013,460 |
15.91% |
|
Non-mark-up/interest income |
|
|
|
|
Fee, commission, and brokerage income |
5,904,361 |
4,730,547 |
24.81% |
|
Dividend income |
117,602 |
79,519 |
47.89% |
|
Share of profits of associates and joint venture |
259,320 |
255,349 |
1.56% |
|
Foreign Exchange Income/(loss) |
895,801 |
(1,193,768) |
-175.04% |
|
Income/(loss) from derivatives |
1,179,287 |
(280,304) |
– |
|
Gain/ (loss) on sale of securities – net |
(206,350) |
2,279,970 |
– |
|
Other income |
72,179 |
(93,812) |
-176.94% |
|
Total non-mark-up /interest income |
8,222,200 |
5,777,501 |
42.31% |
|
Total income |
40,691,474 |
33,790,961 |
20.42% |
|
Non-mark-up/interest expenses |
|
|
|
|
Operating expenses |
23,901,977 |
25,639,193 |
-6.78% |
|
Workers' Welfare Fund |
319,146 |
161,519 |
97.59% |
|
Other charges |
42,233 |
232,198 |
-81.81% |
|
Total non-mark-up/interest expenses |
24,263,356 |
26,032,910 |
-6.80% |
|
Profit before provisions and taxation |
16,428,118 |
7,758,051 |
111.76% |
|
Provisions and write offs-net |
1,919,910 |
625,273 |
207.05% |
|
Profit before taxation |
14,508,208 |
7,132,778 |
103.40% |
|
Taxation |
5,948,351 |
3,024,676 |
96.66% |
|
Profit after taxation |
8,559,857 |
4,108,102 |
108.37% |
|
Earnings per share – basic and diluted (Rupees) |
5.68 |
2.79 |
103.58% |
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