Higher NII elevates Bank Al Habib’s profitability by 60.5% during CY20

MG News | January 27, 2021 at 05:16 PM GMT+05:00

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January 27, 2021 (MLN): Bank Al Habib Limited (BAHL) has unveiled its financial results for CY20, as per results, the bank’s profitability has substantially increased by 60.5% YoY to stand at Rs 17.95 billion against Rs 11.19 billion of the same period last year.

The earnings per share of BAHL also exhibited an increase of 60.38% YoY to Rs 16.15 as opposed to Rs 10.07 last year.

Alongside financial results, the board of directors has announced a final cash dividend for the year ended Dec 31, 2020, at Rs 4.50 per share i.e. 45%.

The massive increase in profitability was attributable to higher than expected Net Interest Income (NII), which expanded by 40% YoY to Rs 57.64 billion.

During the period under review, non-funded income (NFI) of the bank jumped up by 10% YoY mainly on account of higher fee and commission income ( up by 11% YoY), other income (up by 23.6% YoY) along with a net gain of Rs 182 million on securities.

However, non-interest expenses of the bank surged by 23% YoY, limiting the favorable impact of increased NII and NFI on the bank’s net earnings. In CY20, the bank paid taxes worth Rs 10.75 billion, up by 37% YoY.

Consolidated Profit and Loss Account for the year ended December 31, 2020 (Rupees in '000)
	Dec-20	Dec-19	% Change
Mark-up/return/interest earned	125,292,340	105,617,207	18.63%
Mark-up/return/interest expensed	(67,649,002)	(64,412,998)	5.02%
Net mark-up/return/interest income	57,643,338	41,204,209	39.90%
NON-MARK-UP/INTEREST INCOME
Fee and commission income	6,819,687	6,135,310	11.15%
Dividend income	432,360	397,558	8.75%
Foreign exchange income	2,142,728	2,305,204	-7.05%
Income/(loss) from derivatives	-	-
Gain/ (Loss) on securities - net	182,013	(32,469)	-
Share of profit from associates	114,337	94,992	20.36%
Other income	819,337	662,966	23.59%
Total non-mark-up/interest income	10,510,462	9,563,561	9.90%
Total Income	68,153,800	50,767,770	34.25%
NON-MARK-UP/INTEREST EXPENSES
Operating expenses	(34,167,718)	(27,786,291)	22.97%
Workers welfare fund	(673,046)	(448,415)	50.09%
Other charges	(56,672)	(93,244)	-39.22%
Total non-mark-up/interest expenses	(34,897,436)	(28,327,950)	23.19%
Profit before provisions	33,256,364	22,439,820	48.20%
(Provisions) and write offs - net	(4,546,944)	(3,399,357)	33.76%
Extra-ordinary / unusual items	-	-
Profit before taxation	28,709,420	19,040,463	50.78%
Taxation	(10,751,460)	(7,848,833)	36.98%
Profit after taxation	17,957,960	11,191,630	60.46%
Earnings per share - Basic and Diluted (in Rupees)	16.15	10.07	60.38%

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