HBL's half year profits decline by 52%

MG News | July 24, 2019 at 03:20 PM GMT+05:00

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July 24, 2019 (MLN): Habib Bank Limited (HBL) has announced its financial earnings for the half year ended on June 30, 2019, as per which the bank has observed a decline in its after-tax profits by around 51.7% to Rs 3.9 billion from Rs 8.1 billion recorded in the same period last year.

The decline in HBL’s net profits was mainly due to foreign exchange losses on US denominated borrowings, as the losses went up by 146% from Rs 661.9 million in the same period last year, to Rs 1.6 billion.

The bank’s mark-up income grew by 47% which can be attributed to hike in interest rates, but the effect was mitigated by the rise in interest expenses on deposits, enabling the net interest income to up by 19.5%.

The bank's net profits were below market expectations, as the maximum projection for decline in profits was 41%.

The Board of Directors of the bank announced an interim cash dividend for the quarter on ended June 30, 2019 at Rs 1.25 per share i.e. 12.5%.

Consolidated Profit and Loss Account for the half year ended June 30,2019 (Rupees '000)
	Jun-19	Jun-18	% Change
Mark-up/return/profit/interest earned	111,090,000	75,531,749	47.08%
Mark-up/return/profit/interest expensed	63,386,612	35,626,606	77.92%
Net mark-up/return/profit/interest income	47,703,388	39,905,143	19.54%
Non mark-up/interest income
Fee, commission and brokerage income	10,677,330	9,235,317	15.61%
Dividend income	314,461	495,686	-36.56%
Share of profits of associates and joint venture	1,328,379	1,658,780	-19.92%
Income/(loss) from dealing in foreign currencies	(1,632,651)	(661,969)	146%
Gain on sale of securities - net	(2,113,615)	276,141	-865.41%
loss from derivatives	(1,023,516)	(116,421)	779.15%
Other income/(loss)	402,834	226,975	77.48%
Total non-mark-up /interest income	7,953,222	11,114,509	-28.44%
Total Income	55,656,610	51,019,652	9.09%
Non mark-up/interest expenses
Operating expenses	(44,968,345)	(36,191,286)	24.25%
Other charges	(202,309)	(309,220)	-34.57%
Workers' Welfare Fund	(81,279)	(267,883)	-69.66%
Total non-mark-up/interest expenses	(45,251,933)	(36,768,389)	23.07%
Profit/(loss) before taxation	10,404,677	14,251,263	-26.99%
Provision and write offs-net	(510,925)	(122,682)
Taxation	(5,966,450)	(6,000,506)	-0.57%
Profit/(loss) after taxation	3,927,302	8,128,075	-51.68%
Earnings per share - basic and diluted (Rupees)	2.53	5.42	-53.32%

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