HBL profits fall by 12.44% YoY in 9MCY22

October 27, 2022 (MLN): Habib Bank Limited (HBL) announced its nine months CY22 results where the bank reported net profits of Rs23.63 billion (EPS: Rs15.95) compared to Rs26.99bn (EPS: Rs18.21) in the same period last year, showing a decline of 12.44% YoY.

Along with the result, the bank announced an interim cash dividend for the third quarter ended on Sep 30, 2022, at Rs1.50 per share, taking the full-year cash payout to Rs5.25 per share.

Going by the income statement, the bank witnessed an increase of 101.96% YoY in its markup interest expense to clock in at Rs193bn against Rs95.91bn in the same period last year (SPLY).

In addition, the bank’s total non-markup interest expense surged by 30.22% YoY to Rs92.46bn as compared to Rs71bn in SPLY.

During the period under review, the bank witnessed an increase of 19.44% YoY in its net interest income (NII) to stand at Rs116bn, compared to SPLY. The surge in NII is due to a jump in interest-earning (Rs309bn), up by 60.37% YoY.

Furthermore, the bank’s non-markup income climbed up by 38.43% YoY to Rs35.61bn owing to the massive surge in foreign exchange income by 337.02% YoY to clock in at Rs12.72bn. In addition, the increment in fee and commission income is also up by 26.94% YoY in 9MCY22.

Meanwhile, other income decreased by 63.68% YoY to clock in at Rs342.69 million in this period.

On the taxation front, the company paid Rs31.97mn, up by 64.87% YoY during the review period, compared to Rs19.39bn in SPLY.

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