April 26, 2024 (MLN): Habib Metropolitan Bank Limited (PSX: HMB) has recorded a 4.56% YoY rise in its profits for the quarter ended March 31, 2024 (1QCY24) to clock in at Rs6.12 billion [EPS: Rs5.68], compared to the earnings of Rs5.86bn [EPS: Rs5.49] incurred in the same period last year (SPLY).
The Board of Directors (BoD) has also recommended an interim cash at Rs2.5 per share i.e. 25%.
The rally extends from the past year (2023) when the bank recorded its highest profit after tax of Rs25.24bn.
The analysis of the income statement shows that the bank witnessed an increase of 19.62% YoY in its net interest income (NII) to stand at Rs16.8bn, compared to Rs14.04bn in 1QCY23.
With interest rates at their peak, the bank reported a boost in NII, which was reflected in its interest income of Rs66.06bn during the quarter.
On the other hand, the bank’s total non-markup income dropped by around 6% YoY to Rs3.74bn, owing to a significant drop in in foreign exchange income that was reported at Rs1.3bn, depicting a 28.29% YoY drop.
Meanwhile, all the other heads under the non-markup income section witnessed improvement, with rising fee and commission income, as well as dividend income.
On the expense side, the bank’s non-markup expenses increased by 15.36% YoY to Rs7.75bn in 1QFY24 compared to Rs6.72bn in 1QCY23.
The increase was attributed to the jump of 13.67% YoY in operating expenses from Rs6.54bn to Rs7.75bn in the quarter under review.
Similarly, MEBL’s expenses towards the Workers' welfare fund and other charges also went up during the review period.
In addition, the bank incurred a provision expense of Rs891.57m during the review period compared to Rs1.05bn in the corresponding period last year.
The bank paid Rs5.78bn on the tax front, 31.29% YoY higher than the amount paid in 1QCY23.
| Consolidated Profit and Loss Account for the first quarter ended March 31, 2024 (Rupees in '000) | |||
|---|---|---|---|
| Mar-24 | Mar-23 | % Change | |
| Mark-up/return/interest earned | 60,064,053 | 44,847,935 | 33.93% |
| Mark-up/return/interest expensed | (43,263,818) | (30,803,625) | 40.45% |
| Net mark-up/interest income | 16,800,235 | 14,044,310 | 19.62% |
| NON MARK-UP/INTEREST INCOME | |||
| Fee and commision income | 2,475,835 | 2,159,099 | 14.67% |
| Dividend income | 207,119 | 131,230 | 57.83% |
| Foreign exchange income | 1,300,554 | 1,813,692 | -28.29% |
| Income/(loss) from derivatives | – | – | |
| Gain /(loss) on securities | (267,137) | (142,402) | 87.59% |
| Other income | 26,342 | 19,624 | 34.23% |
| Total non mark-up/interest income | 3,742,713 | 3,981,243 | -5.99% |
| Total income | 20,542,948 | 18,025,553 | 13.97% |
| NON MARK-UP/INTEREST EXPENSES | |||
| Operating expenses | 7,434,093 | 6,539,852 | 13.67% |
| Workers Welfare Fund | 244,476 | 178,410 | 37.03% |
| Other charges | 71,777 | 5 | 1435440.00% |
| Total non mark-up/interest expenses | 7,750,346 | 6,718,267 | 15.36% |
| Profit before provisions | 12,792,602 | 11,307,286 | 13.14% |
| Credit loss allowance and write offs – net | (891,572) | (1,050,252) | -15.11% |
| Extra-ordinary / unusual items | – | – | |
| Profit before taxation | 11,901,030 | 10,257,034 | 16.03% |
| Taxation | (5,777,365) | (4,400,565) | 31.29% |
| Profit after taxation | 6,123,665 | 5,856,469 | 4.56% |
| Earnings per share – Basic and Diluted (in Rupees) | 5.68 | 5.49 | – |
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Posted on: 2024-04-26T10:49:13+05:00
