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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