HMB’s nine-month profits jump by 20% to Rs10.21bn

October 25, 2021 (MLN): Habib Metropolitan Bank (HMB) has observed an increase of 20% in its nine-month profits, standing at Rs10.21 billion which translated into an EPS of Rs9.51 when compared to the net profits of Rs8.53bn (EPS: 7.94) recorded the same period of last year.

The increase in profitability was primarily due to net interest income (NII).

During the period under review, the bank’s interest income came down by 9.4% YoY while interest expenses decreased by roughly 20% YoY, hence HMB’s net interest income (NII) stood at Rs22.39bn, showing an increase of 11.71% YoY during 9MCY21.

While, non-funded income (NFI) of the bank edged surged by 14.48% YoY to stand at Rs8.06bn due to a 31% increase in fee and commission income, around six-fold increase in other income coupled with a capital gain of Rs167mn against the loss of Rs99.83mn in the corresponding period last year. However, foreign exchange income went down by 21% YoY to Rs2.39bn during the said period.

Moreover, operating expenses went up by 13% YoY to Rs12.04bn whereas the bank witnessed Rs2.07bn provisions, up by 3.5% YoY that restricted its bottom-line. Nevertheless, the effective tax rate improved to 36% as compared to 39% in 9MCY20.

Consolidated Profit and Loss Account for the Nine-months ended September, 2021 (Rupees in '000)

 

Sep-21

Sep-20

% Change

Mark-up/return/interest earned

 54,462,149

 60,093,440

-9.37%

Mark-up/return/interest expensed

 (32,075,472)

 (40,053,744)

-19.92%

Net mark-up/interest income

 22,386,677

 20,039,696

11.71%

NON-MARK-UP/INTEREST INCOME

 

 

 

Fee and commission income

 5,140,249

 3,932,893

30.70%

Dividend income

 96,974

 136,248

-28.83%

Foreign exchange income

 2,389,731

 3,029,153

-21.11%

Income/(loss) from derivatives

 –  

 –  

Gain /(loss) on securities

 167,987

 (99,826)

Other income

 268,194

 44,982

496.23%

Total non-mark-up/interest income

 8,063,135

 7,043,450

14.48%

Total income

 30,449,812

 27,083,146

12.43%

NON-MARK-UP/INTEREST EXPENSES

 

 

 

Operating expenses

 12,036,570

 10,645,111

13.07%

Workers Welfare Fund

 323,420

 325,185

-0.54%

Other charges

 14,678

 31,980

-54.10%

Total non-mark-up/interest expenses

 12,374,668

 11,002,276

12.47%

Profit before provisions

 18,075,144

 16,080,870

12.40%

Provisions and write offs – net

 (2,068,759)

 (1,999,253)

3.48%

Extra-ordinary / unusual items

 –  

 –  

 

Profit before taxation

 16,006,385

 14,081,617

13.67%

Taxation

 (5,792,525)

 (5,554,249)

4.29%

Profit after taxation

 10,213,860

 8,527,368

19.78%

Earnings per share – Basic and Diluted (in Rupees)

 9.51

 7.94

19.77%

 

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Posted on: 2021-10-25T11:09:32+05:00

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