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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