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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