HMB’s net earnings surge by 77% in CY20

February 23, 2021 (MLN): Habib Metropolitan Bank Limited (HMB) has reported 77% YoY increase in CY20 profits to Rs 12.335 million against the profits of Rs 6.96 billion earned in CY19

This reflected in Bank’s earnings per share which grew by 81% YoY to Rs11.5/sh from Rs 6.34/sh in 2019.

In conjunction with the results, the Bank announced a final cash dividend of Rs. 2.50 per share i.e. 25%. This is in addition to the Interim Dividend already paid at Rs. 2/- per share i.e. 20%, totaling Rs. 4.50 per share i.e. 45%.

During the year, HMB’s Net Interest Income (NII) exhibited a growth of 63.76% manly due to 13.2% YoY contraction in interest expenses.

Non-interest income of the Bank pulled up by 31% YoY owing to recovery in Fee and Commission income as trade begins to normalize, 88.4% increase in dividend income and 31% YoY increase in income from foreign exchange dealings.

Furthermore, the bank also witnessed 96% YoY reduction in losses on securities, which provided a cushion to company’s profitability. As a result, the cost to income ratio of the Bank improved to 39% from 53% in the previous year.

The Bank also booked 8.6x higher provisioning expense of Rs 3.6 billion as opposed to provisioning of Rs 419.5 million reported in CY19.

The effective tax rate of the Bank for CY20 came in at 39% compared to 40% in 2019.

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

                     77,121,348

                     72,921,634

5.76%

Mark-up/return/interest expensed

                  (47,697,536)

                  (54,954,379)

-13.21%

Net mark-up/interest income

                     29,423,812

                     17,967,255

63.76%

NON-MARK-UP/INTEREST INCOME

 

 

 

Fee and commission income

                       5,440,486

                       5,295,245

2.74%

Dividend income

                           191,828

                           101,797

88.44%

Foreign exchange income

                       4,086,904

                       3,116,980

31.12%

Income/(loss) from derivatives

                                      –  

                                      –  

 

Gain /(loss) on securities

                           (44,339)

                     (1,167,204)

Other income

                             42,392

                             63,615

-33.36%

Total non-mark-up/interest income

                       9,717,271

                       7,410,433

31.13%

Total income

                     39,141,083

                     25,377,688

54.23%

NON-MARK-UP/INTEREST EXPENSES

 

 

 

Operating expenses

                     14,573,245

                     12,982,036

12.26%

Workers Welfare Fund

                           463,452

                           245,636

88.67%

Other charges

                             97,092

                           101,813

-4.64%

Total non-mark-up/interest expenses

                     15,133,789

                     13,329,485

13.54%

Profit before provisions

                     24,007,294

                     12,048,203

99.26%

(Provisions)/reversal and write offs – net

                     (3,621,049)

                        (419,546)

Extra-ordinary / unusual items

                                      –  

                                      –  

 

Profit before taxation

                     20,386,245

                     11,628,657

75.31%

Taxation

                     (8,050,797)

                     (4,666,911)

72.51%

Profit after taxation

                     12,335,448

                       6,961,746

77.19%

Earnings per share – Basic and Diluted (in Rupees)

                               11.50

                                  6.34

81.39%

 

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Posted on: 2021-02-23T15:11:00+05:00

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