February 16, 2024 (MLN): Habib Metropolitan Bank Limited (PSX: HMB) has recorded a massive profit of Rs25.24 billion [EPS: Rs23.44] for 2023, depicting a surge of over 69% YoY, compared to the earnings of Rs14.92bn [EPS: Rs9.88] incurred in the same period last year (SPLY), bank’s filing on PSX showed today.
The Board of Directors (BoD) has also recommended a final cash dividend for the year ended December 31, 2023, at Rs5.50 per share i.e. 55%.
This is in addition to the interim dividend already paid at Rs5 per share i.e. 50%, totaling Rs10.50 per share i.e. 105%.
The analysis of the income statement shows that the bank witnessed an increase of 75.68% YoY in its net interest income (NII) to stand at Rs73.2bn, compared to Rs41.67bn in FY22.
With interest rates at their peak, the bank reported a boost in NII, which was reflected in its interest income of Rs209.34bn in 2023.
During the period under review, the bank’s total non-markup income also grew 13.72% YoY to Rs15.42bn, owing to a rise in Fee and commission income that was reported at Rs9.46bn, depicting an increase of 17.83% YoY.
Under the non-markup income, HMB’s loss on securities was reduced by 91.72% YoY to just 5.27m.
On the expense side, the bank’s non-markup expenses increased by 32.16% YoY to Rs30.39bn in 2023 compared to Rs23bn in 2022.
The increase was attributed to the jump of 30.54% YoY in operating expenses from Rs22.33bn in 2022 to Rs29.15bn in 2023.
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 Rs5.1bn during the review period compared to Rs3.76bn in the corresponding period last year.
The bank paid Rs27.89bn on the tax front, 2.06x higher than the amount paid in 2022.
| Consolidated Profit and Loss Account for the year ended on December 31, 2023 (Rupees in '000) | |||
|---|---|---|---|
| Dec-23 | Dec-22 | % Change | |
| Mark-up/return/interest earned | 209,337,058 | 135,177,510 | 54.86% |
| Mark-up/return/interest expensed | (136,139,478) | (93,512,382) | 45.58% |
| Net mark-up/interest income | 73,197,580 | 41,665,128 | 75.68% |
| NON-MARK-UP/INTEREST INCOME | |||
| Fee and commission income | 9,463,214 | 8,031,050 | 17.83% |
| Dividend income | 657,866 | 328,560 | 100.23% |
| Foreign exchange income | 5,203,162 | 5,093,568 | 2.15% |
| Income/(loss) from derivatives | – | – | |
| Gain /(loss) on securities | (5,269) | (63,636) | -91.72% |
| Other income | 102,620 | 170,921 | -39.96% |
| Total non mark-up/interest income | 15,421,593 | 13,560,463 | 13.72% |
| Total income | 88,619,173 | 55,225,591 | 60.47% |
| NON MARK-UP/INTEREST EXPENSES | |||
| Operating expenses | 29,146,657 | 22,327,992 | 30.54% |
| Workers Welfare Fund | 1,122,976 | 601,255 | 86.77% |
| Other charges | 123,489 | 67,878 | 81.93% |
| Total non mark-up/interest expenses | 30,393,122 | 22,997,125 | 32.16% |
| Profit before provisions | 58,226,051 | 32,228,466 | 80.67% |
| (Provisions)/reversal and write offs – net | (5,101,851) | (3,759,638) | 35.70% |
| Extra-ordinary / unusual items | – | – | |
| Profit before taxation | 53,124,200 | 28,468,828 | 86.60% |
| Taxation | (27,888,307) | (13,544,652) | 105.90% |
| Profit after taxation | 25,235,893 | 14,924,176 | 69.09% |
| Earnings per share – Basic and Diluted (in Rupees) | 23.44 | 13.72 | – |
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Posted on: 2024-02-16T10:29:18+05:00
