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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