August 19, 2020 (MLN): Habib Metropolitan Bank (HMB) has recorded profits of Rs. 4.29 billion (EPS: Rs 3.97) for the half-year ended June 30, 2020, showing a growth of 27.71% against net profits of Rs 3.35 billion of the corresponding period last year.
The increase in profitability of the bank was attributable to net interest income (NII) on the back of repricing gains given the sharp decline in the policy rate.
According to the research of AKD securities, higher financing growth in the backdrop of COVID-19 related SBP schemes supported NII.
During the period under review, capital gains of Rs 149 million, higher FX income by 47% YoY, and increased dividend income by 2.45 times YoY pushed up the bank’s non-funded income (NFI) by 43.07 % YoY. However, provisioning expenses of Rs 1.603 billion restricted the favorable impact of higher NII and NFI on the bank’s net earnings.
|
Consolidated Profit and Loss Account for the half-year ended June 30, 2020 (Rupees in '000) |
|||
|---|---|---|---|
|
|
Jun-20 |
Jun-19 |
% Change |
|
Mark-up/return/interest earned |
40,908,249 |
31,019,780 |
31.88% |
|
Mark-up/return/interest expensed |
(29,925,237) |
(22,147,026) |
35.12% |
|
Net mark-up/interest income |
10,983,012 |
8,872,754 |
23.78% |
|
NON-MARK-UP/INTEREST INCOME |
|
|
|
|
Fee and commission income |
2,496,970 |
2,626,017 |
-4.91% |
|
Dividend income |
112,669 |
45,839 |
145.79% |
|
Foreign exchange income |
2,006,532 |
1,358,716 |
47.68% |
|
Income/(loss) from derivatives |
– |
– |
|
|
Gain /(loss) on securities |
149,122 |
(719,681) |
– |
|
Other income |
22,552 |
35,539 |
-36.54% |
|
Total non-mark-up/interest income |
4,787,845 |
3,346,430 |
43.07% |
|
Total income |
15,770,857 |
12,219,184 |
29.07% |
|
NON-MARK-UP/INTEREST EXPENSES |
|
|
|
|
Operating expenses |
6,960,093 |
6,280,949 |
10.81% |
|
Workers Welfare Fund |
151,473 |
113,676 |
33.25% |
|
Other charges |
29,240 |
41,295 |
-29.19% |
|
Total non-mark-up/interest expenses |
7,140,806 |
6,435,920 |
10.95% |
|
Profit before provisions |
8,630,051 |
5,783,264 |
49.22% |
|
(Provisions)/reversal and write offs – net |
(1,603,089) |
106,857 |
– |
|
Extra-ordinary / unusual items |
– |
– |
|
|
Profit before taxation |
7,026,962 |
5,890,121 |
19.30% |
|
Taxation |
(2,736,367) |
(2,530,380) |
8.14% |
|
Profit after taxation |
4,290,595 |
3,359,741 |
27.71% |
|
Earnings per share – Basic and Diluted (in Rupees) |
3.97 |
3.05 |
30.16% |
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