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HomeEquityHBL outperforms market expectations in CY19

HBL outperforms market expectations in CY19

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%

 

Copyright Mettis Link News

Posted on: 2020-02-19T12:46:00+05:00

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