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HBL’s half year profits decline by 52%

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%

 

Copyright Mettis Link News

 

 

Posted on: 2019-07-24T15:20:00+05:00

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