February 19, 2020 (MLN): Habib Bank Limited (HL) has announced its financial results for CY19 as per which, the bank has posted its consolidated net profits of Rs 15.45 billion (EPS: 10.45) i.e. 24.6% higher than the same period of last year.
The profitability of the bank went up primarily due to higher net interest income, up by 24.06% YoY, supported by growth in non-interest income by 21.44% YoY.
The bank’s interest income rose 56%YoY at Rs 258 billion in CY19 on a back of growth in the bank’s credit offtake. However, interest expense also increased by 87% YoY, thereby curtailing growth in the bank’s net interest income (NII) to 24.06% YoY during CY19.
The Non-funded income (NFI) of the bank increased by 21.44%YoY due to due to rising fee income which took impetus from consumer finance businesses, investment banking and trade deliveries.
During the period under review, the bank’s operating expenses rose by 19.02% YoY to stand at Rs 92.23 billion whereas tax expense increased 46.34% YoY in CY19.
Alongside financial results, the board of directors has announced a final cash dividend for the year ended Dec 31, 2019, at Rs 1.25 per share i.e. 12.5%. This is in addition to interim cash dividend already paid at Rs 3.75 per share i.e. 37.5%.
Here, it is pertinent to mention that the bank outperformed market expectations, as its profits were higher than the projections put forth by brokerage houses.
Consolidated Profit and Loss Account for the year ended December 31, 2019 (Rupees '000) |
|||
---|---|---|---|
|
Dec-19 |
Dec-18 |
% Change |
Mark-up/return/profit/interest earned |
258,113,896 |
165,286,803 |
56.16% |
Mark-up/return/profit/interest expensed |
156,790,596 |
83,610,999 |
87.52% |
Net mark-up/return/profit/interest income |
101,323,300 |
81,675,804 |
24.06% |
Non-mark-up/interest income |
|
|
|
Fee and commission income |
20,447,851 |
18,058,336 |
13.23% |
Dividend income |
586,353 |
985,867 |
-40.52% |
Share of profits of associates and joint venture |
3,483,593 |
2,722,983 |
27.93% |
Foreign Exchange Income |
1,657,595 |
(2,392,862) |
|
(Loss) / income from derivatives |
(185,867) |
(907,204) |
-79.51% |
(Loss) / gain on securities- net |
(2,657,256) |
1,029,880 |
|
Other income |
829,310 |
398,483 |
108.12% |
Total non mark-up /interest income |
24,161,579 |
19,895,483 |
21.44% |
Total Income |
125,484,879 |
101,571,287 |
23.54% |
Non-mark-up/interest expenses |
|
|
|
Operating expenses |
92,236,328 |
77,380,591 |
19.20% |
Workers' Welfare Fund |
573,492 |
(2,898,437) |
|
Other charges |
480,056 |
495,726 |
-3.16% |
Total non mark-up/interest expenses |
93,289,876 |
74,977,880 |
24.42% |
Profit/(loss) before taxation |
32,195,003 |
26,593,407 |
21.06% |
Provision and write offs-net |
(3,314,081) |
(5,008,578) |
-33.83% |
Taxation |
(13,381,127) |
(9,143,886) |
46.34% |
Profit/(loss) after taxation |
15,499,795 |
12,440,943 |
24.59% |
Earnings per share – basic and diluted (Rupees) |
10.45 |
8.22 |
27.13% |
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