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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