HBL outperforms market expectations in CY19

MG News | February 19, 2020 at 12:46 PM GMT+05:00

0:00

February 19, 2020 (MLN): Habib Bank Limited (HBL) 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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