July 29, 222 (MLN): Habib Bank Limited (PSX: HBL) disclosed its financial statement on Thursday for the period ended on June 30, 2022, as per which the bottom line of the bank shrank by around 33% YoY to stand at Rs12.1 billion [EPS: Rs8.1] compared to Rs18.02bn in1HCY21 [EPS: Rs12.04].
The drop in profits is mainly due to the significant jump in taxation during 1HCY22 which clocked in at Rs22.48bn, up by 71% YoY. The major blow came from the effective tax rate of 82.5% QoQ recorded in the outgoing quarter due to the imposition of super tax and poverty alleviation tax announced in the federal budget.
Along with the results, the bank declared a cash dividend for the second quarter ended on June 30, 2022, at Rs1.50 per share i.e. 15%. This is an addition to the interim cash dividend already paid at Rs2.25 per share i.e. 22.5%.
The net interest income of the Bank increased by 14% YoY to Rs73.9bn in 1HCY22, on the back of robust book growth, favorable asset pricing, and extremely agree leverage of book.
Meanwhile, the non-funded income witnessed a growth of 34%YoY to Rs23.7bn in the backdrop of a 28%YoY surge in fee and commission income, while, FX income also posted a jump of 5.3x YoY during 1HCY22 to Rs7.8bn.
On the other hand, the derivative trading desk reported a loss of Rs1.1bn which capped further growth in NFI. The disappointing performance of the derivatives desk during the quarter was the key reason for the loss, a report by AKD Securities noted.
On the expenses front, the admin expenses reportedly jumped by 26.5%YoY during the period under review due to rising inflation in the country which took the cost-to-income ratio to 64%.
Furthermore, the provisioning expenses clocked in at Rs1.6bn, which took the total provisioning expenses during 1HCY22 to Rs2.8bn.
|
Consolidated Profit and Loss Account for the half year ended June 30, 2022 (Rupees 000) |
|||
|---|---|---|---|
|
Jun-22 |
Jun-21 |
% Change |
|
|
Mark-up/return/profit/interest earned |
187,634,306 |
126,863,614 |
47.90% |
|
Mark-up/return/profit/interest expensed |
113,738,181 |
61,999,976 |
83.45% |
|
Net mark-up/return/profit/interest income |
73,896,125 |
64,863,638 |
13.93% |
|
Non mark-up/interest income |
|||
|
Fee, commission and brokerage income |
15,057,386 |
11,777,235 |
27.85% |
|
Dividend income |
410,139 |
343,165 |
19.52% |
|
Share of profits of associates and joint venture |
816,212 |
1,235,837 |
-33.95% |
|
Foreign Exchange Income/(loss) |
7,845,475 |
1,463,809 |
435.96% |
|
Income/(loss) from derivatives |
-1,094,276 |
890,867 |
– |
|
Gain/ (loss) on sale of securities – net |
403,228 |
1,481,644 |
– |
|
Other income |
236,537 |
416,786 |
-43.25% |
|
Total non mark-up /interest income |
23,674,701 |
17,609,343 |
34.44% |
|
Total income |
97,570,826 |
82,472,981 |
18.31% |
|
Non mark-up/interest expenses |
|||
|
Operating expenses |
59,047,026 |
46,851,946 |
26.03% |
|
Workers' Welfare Fund |
686,889 |
635,279 |
8.12% |
|
Other charges |
442,313 |
51,862 |
752.87% |
|
Total non mark-up/interest expenses |
60,176,228 |
47,539,087 |
26.58% |
|
Profit before provisions and taxation |
37,394,598 |
34,933,894 |
7.04% |
|
Provisions and write offs-net |
2,803,115 |
3,736,925 |
-24.99% |
|
Profit before taxation |
34,591,483 |
31,196,969 |
10.88% |
|
Taxation |
22,483,698 |
13,166,999 |
70.76% |
|
Profit after taxation |
12,107,785 |
18,029,970 |
-32.85% |
|
Earnings per share – basic and diluted (Rupees) |
8.1 |
12.04 |
-32.72% |
Copyright Mettis Link News
34341
