August 26, 2024 (MLN): Habib Bank Limited (HBL) earned Rs14.01 billion [EPS: 981] on an consolidated basis during the quarter ended June 30, 2024 (Q2 CY24), reflecting a marginal 6.95% YoY growth compared to the profit of Rs13.1bn [EPS: 8.86] earned in the corresponding period last year.
Along with the financial results, the Board of Directors (BoD) of HBL has recommended a final cash dividend of Rs4 per share.
This is in addition to the interim cash dividend already paid at Rs4 per share.
Going by the income statement, the bank remained strong in earning a higher net interest income of Rs61.03bn in Q2 CY24, reflecting an increase of 5.02% compared to Rs58.1bn in SPLY.
While witnessing growth, gains on the interest side were limited as interest expenses also increased significantly.
During the period under review, the bank’s total non-markup income also ticked up by 24.7% YoY to Rs19.36bn.
The rise in non-markup income comes due to improved and expanded economic activity in the country.
On the expense side, the total non-markup expenses increased by 13.28% YoY to Rs46.2bn in Q2 CY24 compared to Rs40.79bn in Q2 CY23.
The increase was attributed to a substantial rise in the bank’s operating expenses from Rs40.15bn in Q2 CY23 to Rs45.6bn in Q2 CY24.
The profit and loss statement further shows that HBL incurred a provision reversal of Rs6.5bn, around 130% higher compared to Rs2.82bn recorded in SPLY.
On the tax front, the bank paid Rs13.72bn, 18.92% YoY lower than the amount paid in Q2 CY23.
| Consolidated Profit and Loss Account for the quarter ended June 30, 2024 (Rupees '000) | |||
|---|---|---|---|
| Jun-24 | Jun-23 | % Change | |
| Mark-up/return/profit/interest earned | 209,239,568 | 170,646,148 | 22.62% |
| Mark-up/return/profit/interest expensed | 148,210,593 | 112,534,426 | 31.70% |
| Net mark-up/return/profit/interest income | 61,028,975 | 58,111,722 | 5.02% |
| Non mark-up/interest income | |||
| Fee and commission income | 12,267,800 | 10,435,040 | 17.56% |
| Dividend income | 419,141 | 975,591 | -57.04% |
| Share of profit of associates and JV | 1,540,346 | 1,364,836 | |
| Foreign exchange income | 2,072,819 | 775,418 | 167.32% |
| Income / (loss) from derivatives | 1,050,235 | 1,008,856 | 4.10% |
| Loss on securities – net | 1,859,708 | 853,952 | 117.78% |
| Other income | 149,392 | 110,678 | 34.98% |
| Total non mark-up /interest income | 19,359,441 | 15,524,371 | 24.70% |
| Total income | 80,388,416 | 73,636,093 | 9.17% |
| Non mark-up/interest expenses | – | – | |
| Operating expenses | 45,610,827 | 40,152,734 | 13.59% |
| Workers' Welfare Fund | 593,342 | 574,002 | 3.37% |
| Other charges | 341 | 60,715 | -99.44% |
| Total non mark-up/interest expenses | 46,204,510 | 40,787,451 | 13.28% |
| Profit before provisions and taxation | 34,183,906 | 32,848,642 | 4.06% |
| Credit loss allowance and write offs – net | 6,449,107 | 2,821,637 | 128.56% |
| Profit before taxation | 27,734,799 | 30,027,005 | -7.63% |
| Taxation | 13,721,345 | 16,923,726 | -18.92% |
| Profit after taxation | 14,013,454 | 13,103,279 | 6.95% |
| Earnings per share – basic and diluted (Rupees) | 9.81 | 8.86 | – |
Copyright Mettis Link News
Posted on: 2024-08-26T16:29:13+05:00
