February 17, 2021 (MLN): Habib Bank Limited has reported earnings of Rs. 30.9 billion (EPS: 21.06) for the year ended December 31, 2020, i.e. nearly the double of what it earned during the previous year.
The Bank also announced a final Cash Dividend of Rs. 3 per share i.e. 30%. This is in addition to the interim dividend already paid at Rs. 1.25 per share i.e. 12.5%.
The net interest income of the bank went up by 28.4% owing to reduction in interest expense amidst lower interest rates. Similarly, the non-interest income surged by 26.6% owing to presence of income from derivatives of Rs. 1.07 billion and gain on securities of Rs. 7.05 billion. However, a foreign exchange loss of Rs. 161.6 million was also recorded during the year.
Further pressure on the earnings was exerted by a 268% increase in provisioning cost, as well as increase in income tax expense by 65%.
|
Consolidated Financial Results for the year ended December 31, 2020 (Rupees in '000) |
|||
|---|---|---|---|
|
Dec-20 |
Dec-19 |
% Change |
|
|
Mark-up/return/interest earned |
271,237,258 |
258,113,896 |
5.1% |
|
Mark-up/return/interest expensed |
(141,132,940) |
(156,790,596) |
-10.0% |
|
Net mark-up and interest income |
130,104,318 |
101,323,300 |
28.4% |
|
NON MARK-UP / INTEREST INCOME |
|||
|
Fee and commission income |
18,795,739 |
20,447,851 |
-8.1% |
|
Dividend income |
489,303 |
586,353 |
-16.6% |
|
Share of profit of associates and joint venture |
2,963,090 |
3,483,593 |
-14.9% |
|
Foreign exchange income |
(161,688) |
1,657,595 |
|
|
Income/(loss) from dertivatives |
1,077,945 |
(185,867) |
|
|
Gain/(loss) on securities – net |
7,054,874 |
(2,657,256) |
|
|
Other income |
375,597 |
829,310 |
-54.7% |
|
Total non-markup / interest income |
30,594,860 |
24,161,579 |
26.6% |
|
Total income |
160,699,178 |
125,484,879 |
28.1% |
|
NON MARK-UP / INTEREST EXPENSES |
|||
|
Operating expenses |
(94,018,405) |
(92,236,328) |
1.9% |
|
Workers welfare fund – net |
(1,109,730) |
(573,492) |
93.5% |
|
Other charges |
(320,793) |
(480,056) |
-33.2% |
|
Total non-markup / interest expenses |
(95,448,928) |
(93,289,876) |
2.3% |
|
Profit before provisions |
65,250,250 |
32,195,003 |
102.7% |
|
Provisions/(Reversals) and write offs – net |
(12,219,614) |
(3,314,081) |
268.7% |
|
Extra-ordinary / unusual items |
|||
|
PROFIT BEFORE TAXATION |
53,030,636 |
28,880,922 |
83.6% |
|
Taxation |
(22,117,287) |
(13,381,127) |
65.3% |
|
PROFIT AFTER TAXATION |
30,913,349 |
15,499,795 |
99.4% |
|
Basic and diluted earnings per share |
21.06 |
10.45 |
101.5% |
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