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HBL sees a 19% YoY profits surge on non-funded income growth

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July 29, 2021 (MLN): Habib Bank Limited (HBL) has announced its financial results for 1HCY21 as per which, the bank has posted its consolidated net profits of Rs 18.03 billion (EPS:12.04) i.e., 19% higher than the same period of last year.

Alongside financial results, the board of directors has announced an interim cash dividend for the second quarter ended June 30, 2021 at Rs1.75 per share i.e. 17.5%. This is in addition to the interim cash dividend already paid at Rs1.75 per share i.e. 17.5%.

The increase in profitability was due to a rise in non-funded income growth, up by 6% YoY.

During the period under review, the bank’s interest expenses decreased by roughly 23% YoY, whereas, income went down by 11.4% YoY, thereby restricting growth in the bank’s net interest income (NII) to 3% YoY during 1HCY21.

On the other hand, non-funded income (NFI) of the bank jumped by 6% YoY to clock in at Rs17.61bn due to a stronger foreign exchange income of Rs1.46bn, a massive increase in income from derivatives (up by 3.5x YoY) coupled with an increase of 4.3x YoY times of other income. However, the capital gains declined by 78% YoY to Rs1.48bn.

Moreover, operating expenses came down by 1.72% YoY to stand at Rs46.85bn whereas provision expenses declined by 32% due to the absence of general provision which the bank charged last year amid the COVID situation.

Consolidated Profit and Loss Account for the half-year ended June 30, 2021 (Rupees '000)

 

Jun-21

Jun-20

% Change

Mark-up/return/profit/interest earned

 126,863,614

 143,131,563

-11.37%

Mark-up/return/profit/interest expensed

 61,999,976

 80,056,387

-22.55%

Net mark-up/return/profit/interest income

 64,863,638

 63,075,176

2.84%

Non-mark-up/interest income

 

 

 

Fee, commission and brokerage income

 11,777,235

 8,899,718

32.33%

Dividend income

 343,165

 196,897

74.29%

Share of profits of associates and joint venture

 1,235,837

 1,227,025

0.72%

Foreign Exchange Income/(loss)

 1,463,809

 (742,336)

Income/(loss) from derivatives

 890,867

 258,278

244.93%

Gain on sale of securities – net

 1,481,644

 6,706,856

-77.91%

Other income

 416,786

 97,077

329.34%

Total non-mark-up /interest income

 17,609,343

 16,643,515

5.80%

Total income

 82,472,981

 79,718,691

3.46%

Non-mark-up/interest expenses

 

 

 

Operating expenses

 46,851,946

 47,672,039

-1.72%

Workers' Welfare Fund

 635,279

 516,746

22.94%

Other charges

 51,862

 232,608

-77.70%

Total non-mark-up/interest expenses

 47,539,087

 48,421,393

-1.82%

Profit before provisions and taxation

 34,933,894

 31,297,298

11.62%

Provisions (reversals) and write offs-net

 3,736,925

 5,467,852

-31.66%

Profit before taxation

 31,196,969

 25,829,446

20.78%

Taxation

 13,166,999

 10,640,834

23.74%

Profit after taxation

 18,029,970

 15,188,612

18.71%

Earnings per share – basic and diluted (Rupees)

 12.04

 10.32

16.67%

 

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Posted on: 2021-07-29T16:08:00+05:00

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