October 25, 2018 (MLN): Owing to the major relief provided by reduced tax expenses, Habib Bank Limited (HBL) successfully redirected its declining pre-tax profits towards a healthy growth of almost Rs.8.4 billion in consolidated profits, for the nine month period ended September 30, 2018.
As compared to the same period last year, HBL’s net mark-up/return/profit/interest income after provisions declined by 2% on account of provision for diminution in the value of investments, which exceeded prior provision by over Rs.1.3 billion.
Meanwhile the company suffered significant declines in inflows from non-mark-up /interest income, whereas administrative expenses registered further rise.
Fortunately, HBL saved substantially on settlement payment to New York State Department of Financial Services, due to which most of the drop in inflows was recovered.
While HBL’s pretax profits came down by 5.7%, further reduction in tax provisions (54%) caused the total profits to rise drastically, to Rs.9.9 billion.
The company has reported an appreciable rise in its basic and diluted earnings per share, which grew by Rs.5.7 per share as they stand in at Rs.6.57 per share.
In addition to this, HBL’s board of directors have recommended an interim cash dividend at Rs.1 per share (10%), in addition to the previously paid interim dividend at Rs.2 per share (20%)
|
Consolidated Profit and Loss Account for the nine months ended September 30,2018 (Rupees '000) |
|||
|---|---|---|---|
|
|
Sep-18 |
Sep-17 |
% Change |
|
Mark-up/return/profit/interest earned |
117,071,110 |
109,389,601 |
7.02% |
|
Mark-up/return/profit/interest expensed |
55,950,012 |
47,413,889 |
18.00% |
|
Net mark-up/return/profit/interest income |
61,121,098 |
61,975,712 |
-1.38% |
|
Provision/(reversal) against advances |
(387,604) |
312,818 |
|
|
Provision/(reversal) against off-balance sheet obligations |
20,173 |
(8,992) |
|
|
Provision for diminution in the value of investments |
2,085,134 |
774,384 |
169.26% |
|
Bad debts written off directly |
– |
– |
|
|
|
1,717,703 |
1,078,210 |
59.31% |
|
Net mark-up/return/profit/interest income after provisions |
59,403,395 |
60,897,502 |
-2.45% |
|
Non-mark-up/interest income |
|
|
|
|
Fee, commission and brokerage income |
12,708,959 |
15,520,466 |
-18.11% |
|
Dividend income |
636,969 |
959,337 |
-33.60% |
|
Share of profits of associates and joint venture |
2,324,938 |
2,277,455 |
2.08% |
|
Income/(loss) from dealing in foreign currencies |
(568,622) |
1,932,472 |
|
|
Gain on sale of securities – net |
405,771 |
5,041,126 |
-91.95% |
|
Unrealized (loss)/gain of revaluation of investments classified as held for trading |
(48,471) |
(99,000) |
-51.04% |
|
Other income/(loss) |
32,807 |
662,899 |
-95.05% |
|
Total non-mark-up /interest income |
15,492,351 |
26,294,755 |
-41.08% |
|
|
74,895,746 |
87,192,257 |
-14.10% |
|
Non mark-up/interest expenses |
|
|
|
|
Administrative expenses |
56,263,712 |
43,494,750 |
29.36% |
|
Other provisions/write offs-net |
154,488 |
403,742 |
-61.74% |
|
Other charges |
465,994 |
2,499 |
18547.22% |
|
Workers' Welfare Fund |
330,051 |
816,850 |
-59.59% |
|
Total non-mark-up/interest expenses |
57,214,245 |
44,717,841 |
27.95% |
|
Extraordinary/unusual item – settlement payment to New York State Department of Financial Services |
– |
23,717,115 |
|
|
Profit/(loss) before taxation |
17,681,501 |
18,757,301 |
-5.74% |
|
Taxation |
7,771,355 |
17,202,873 |
-54.83% |
|
Profit/(loss) after taxation |
9,910,146 |
1,554,428 |
537.54% |
|
Earnings per share – basic and diluted (Rupees) |
6.57 |
0.87 |
655.17% |
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