August 23, 2024 (MLN): Habib Metropolitan Bank Limited (PSX: HMB) reported a 7.46% decrease in profit for the second quarter of 2024, falling to Rs5.82 billion (EPS: Rs5.41). This compares to the Rs6.28bn (EPS: Rs5.83) earned during the same period last year (SPLY).
The Board of Directors (BoD) has also recommended a final cash dividend for the year ended December 31, 2023, at Rs2.50 per share i.e. 25%.
This is in addition to the interim cash dividend already paid at Rs2.50 per share.
The income statement analysis shows that the bank's net interest income (NII) dipped 16.09% to stand at Rs14.75bn, compared to Rs15.58bn in Q2 CY23.
On the other hand, the enhanced economic activity due to monetary easing boosted HMB's non-markup income to Rs5.72bn, up by 42.45% YoY.
This is owing to a rise in Foreign exchange income that was reported at Rs2.12bn, depicting an increase of 41.88% YoY.
Another positive development was the income on securities, which turned into a gain of Rs952.72m, compared to a loss of Rs68.93m in Q2 CY23.
On the expense side, the bank’s non-markup expenses increased by 8.63% YoY to Rs8.26bn in Q2 CY24.
The increase was attributed to the jump of 11.55% YoY in operating expenses from Rs7.21bn in Q2 CY23 to Rs8.04bn in Q2 CY24.
Meanwhile, HMB’s expenses towards the Workers' welfare fund and other charges dropped during the review period.
In addition, the bank incurred a provision expense of Rs1.26bn during the review period.
The bank paid Rs5.13bn on the tax front, 20.12% lower than the amount paid in Q2 CY23.
| Consolidated Profit and Loss Account for the first quarter ended June 30, 2024 (Rupees in '000) | |||
|---|---|---|---|
| Jun-24 | Jun-23 | % Change | |
| Mark-up/return/interest earned | 61,294,728 | 52,611,203 | 16.51% |
| Mark-up/return/interest expensed | (46,547,134) | (35,035,399) | 32.86% |
| Net mark-up/interest income | 14,747,594 | 17,575,804 | -16.09% |
| NON MARK-UP/INTEREST INCOME | |||
| Fee and commision income | 2,441,387 | 2,399,779 | 1.73% |
| Dividend income | 147,656 | 147,441 | 0.15% |
| Foreign exchange income | 2,118,967 | 1,493,499 | 41.88% |
| Income/(loss) from derivatives | – | – | |
| Gain /(loss) on securities | 952,722 | (68,925) | -1482.26% |
| Other income | 58,563 | 43,101 | 35.87% |
| Total non mark-up/interest income | 5,719,295 | 4,014,895 | 42.45% |
| Total income | 20,466,889 | 21,590,699 | -5.21% |
| NON MARK-UP/INTEREST EXPENSES | |||
| Operating expenses | 8,041,215 | 7,208,840 | 11.55% |
| Workers Welfare Fund | 217,612 | 362,655 | -39.99% |
| Other charges | 1,011 | 32,193 | -96.86% |
| Total non mark-up/interest expenses | 8,259,838 | 7,603,688 | 8.63% |
| Profit before provisions | 12,207,051 | 13,987,011 | -12.73% |
| Credit loss allowance and write offs – net | (1,263,327) | (1,282,630) | -1.50% |
| Extra-ordinary / unusual items | – | – | |
| Profit before taxation | 10,943,724 | 12,704,381 | -13.86% |
| Taxation | (5,128,017) | (6,419,585) | -20.12% |
| Profit after taxation | 5,815,707 | 6,284,796 | -7.46% |
| Earnings per share – Basic and Diluted (in Rupees) | 5.41 | 5.83 | – |
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Posted on: 2024-08-23T10:18:06+05:00
