February 24, 2022 (MLN): Habib Bank Limited (HBL) announced its CY21 results today where the bank reported net profits of Rs35.5bn (EPS: Rs23.9) compared to Rs30.9bn (EPS: Rs21.06) in the same period last year, showing an upsurge of 15% YoY.
Along with the result, the bank announced a final cash dividend of Rs2.25 per share, taking the full-year cash payout to Rs7.5 per share.
The YoY growth in earnings was primarily due to reduced provisioning charges as last year saw elevated expenses as part of building general coverage along with improved non-interest income, earning report by Arif Habib Limited cited.
Net interest income of the bank settled at Rs131.4bn for CY21, marginally up by 1% YoY. The flattish YoY rise in the spread is mainly due to 7% YoY increase in interest expense.
On the other hand, non-interest income of the bank surged by 19% YoY during CY21 to Rs36.3bn, led by a marked improvement in fee income (35% YoY) due to resumption in economic activity and improved trade volumes, while FX income clocked in at Rs5.3bn compared to a loss of Rs161mn SPLY.
Meanwhile, capital gains clocked in 85.5% YoY lower during CY21 to Rs1bn.
On the expense side, provisions saw a 34% YoY reduction during the period under review as last year aggressive charges were booked to enhance coverage.
In addition, operating expenses remained flattish in CY21, posting a meagre 2% YoY increase. Moreover, the effective tax rate was stood at 43% for CY21 compared to 42% in CY20.
|
Consolidated Profit and Loss Account for the year ended December 31, 2021 (Rupees '000) |
|||
|---|---|---|---|
|
|
Dec-21 |
Dec-20 |
% Change |
|
Mark-up/return/profit/interest earned |
262,253,962 |
271,237,258 |
-3.31% |
|
Mark-up/return/profit/interest expensed |
130,834,913 |
141,132,940 |
-7.30% |
|
Net mark-up/return/profit/interest income |
131,419,049 |
130,104,318 |
1.01% |
|
Non-mark-up/interest income |
|
|
|
|
Fee, commission income |
25,433,355 |
18,795,739 |
35.31% |
|
Dividend income |
913,769 |
489,303 |
86.75% |
|
Share of profits of associates and joint venture |
2,585,595 |
2,963,090 |
-12.74% |
|
Foreign Exchange Income/(loss) |
5,380,594 |
(161,688) |
– |
|
(Loss)/ Income from derivatives |
(182,098) |
1,077,945 |
– |
|
Gain on sale of securities – net |
1,024,384 |
7,054,874 |
-85.48% |
|
Other income |
1,155,761 |
375,597 |
207.71% |
|
Total non-mark-up /interest income |
36,311,360 |
30,594,860 |
18.68% |
|
Total income |
167,730,409 |
160,699,178 |
4.38% |
|
Non-mark-up/interest expenses |
|
|
|
|
Operating expenses |
95,784,969 |
94,018,405 |
1.88% |
|
Workers' Welfare Fund |
1,273,226 |
1,109,730 |
14.73% |
|
Other charges |
557,198 |
320,793 |
73.69% |
|
Total non-mark-up/interest expenses |
97,615,393 |
95,448,928 |
2.27% |
|
Profit before provisions and taxation |
70,115,016 |
65,250,250 |
7.46% |
|
Provisions/ (reversals) and write offs-net |
8,087,105 |
12,219,614 |
-33.82% |
|
Profit before taxation |
62,027,911 |
53,030,636 |
16.97% |
|
Taxation |
26,521,038 |
22,117,287 |
19.91% |
|
Profit after taxation |
35,506,873 |
30,913,349 |
14.86% |
|
Earnings per share – basic and diluted (Rupees) |
23.88 |
21.06 |
13.39% |
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