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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