April 24, 2019 (MLN): Habib Bank Limited (HBL) has reported Net Profits of Rs. 3.1 billion (EPS: Rs. 2.08) for the first quarter ended March 31, 2019. These figures are approximately 32% lower than those of same period last year.
The bank’s earnings depicted a negative growth due to higher operating expenses, which augmented by 21% owing to continuation of U.S remediation and business transformation costs.
Earnings were further dragged down by higher effective tax rate, owing to 4% super tax imposed on profits of CY17.
However, reversals on provisioning expense and growth in Net interest income by 18% & non-interest income by 22% provided some relief to the earnings.
The bank also announced an interim Cash Dividend for the quarter at Rs. 1.251 per share, i.e. 12.5%.
Profit and loss account for the quarter ended March 31 2019 (Rupees'000) | |||
|---|---|---|---|
Mar-19 | Mar-18 | % Change | |
Mark-up / return / profit / interest earned | 51,524,112 | 37,023,051 | 39.17% |
Mark-up I return / profit / interest expensed | 28,154,016 | 17,322,380 | 62.53% |
Net mark-up / return / profit / interest income | 23,370,096 | 19,700,671 | 18.63% |
Non mark-up / interest income | |||
Fee and commission income | 5,322,737 | 4,508,883 | 18.05% |
Dividend income | 100,811 | 169,676 | -40.59% |
Share of profit of associates and joint venture | 891,248 | 1,064,538 | -16.28% |
Foreign exchange income / (loss) | 452,752 | -394,333 | |
Income / (loss) from derivatives | 184,516 | -83,919 | |
(Loss) / gain on securities – net | -386,628 | 54,640 | |
Other income | 68,712 | 102,389 | -32.89% |
Total non-mark-up / interest income | 6,634,148 | 5,421,874 | 22.36% |
Total income | 30,004,244 | 25,122,545 | 19.43% |
Non mark-up / interest expenses | |||
Operating expenses | 21,440,589 | 17,724,046 | 20.97% |
Workers' Welfare Fund | 161,195 | 139,709 | 15.38% |
Other charges | 50,652 | 6,104 | 729.82% |
Total non-mark-up / interest expenses | 21,652,436 | 17,869,859 | 21.17% |
Profit before provisions and taxation | 8,351,808 | 7,252,686 | 15.15% |
Provisions and write offs – net | -82,971 | -116,973 | -29.07% |
Profit before taxation | 8,434,779 | 7,369,659 | 14.45% |
Taxation | 5,257,226 | 2,682,015 | 96.02% |
Profit after taxation | 3,177,553 | 4,687,644 | -32.21% |
Basic and diluted earnings per share | 2.08 | 3.12 | -33.33% |
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