February 28, 2020(MLN): Habib Metropolitan Bank Limited (HMB) has unveiled its financial results for CY19, as per which, the bank has reported an increase of 8.4% YoY in its profits to stand at Rs 6.96 billion against Rs 6.42 billion of the same period last year.
The slender increase in profitability was due to a rise in net interest income (NII), up by 8% YoY.
The bank’s interest income rose by 69%YoY at Rs 72 billion in CY19 but a greater percentage increase in interest expense by 2.1 times YoY restricted the growth in bank’s net interest income (NII) to 8% YoY during CY19.
During the period under review, non-funded income (NFI) of the bank jumped up by 21.5% YoY mainly on account of higher fee and commission income ( up by 28% YoY) and FX income (up by 2 times YoY) despite huge capital losses.
However, non-interest expenses of the bank surged by 10.8% YoY, limiting the favourable impact of increased NII and NFI on the bank’s net earnings. In CY19, the bank paid taxes worth Rs 4.66 billion, up by 19% YoY.
HMB’s basic and diluted earnings per share have been reported at Rs 6.34 per share while those recorded last year were Rs 5.90 per share.
Alongside financial results, the board of directors has announced a final cash dividend for the year ended Dec 31, 2019, at Rs 2.50per share i.e. 25%.
Consolidated Profit and Loss Account for the year ended on December 31, 2019 (Rupees in '000) | |||
|---|---|---|---|
| Dec-19 | Dec-18 | % Change |
Mark-up/return/interest earned | 72,921,634 | 43,060,826 | 69.35% |
Mark-up/return/interest expensed | (54,954,379) | (26,406,518) | 108.11% |
Net mark-up/interest income | 17,967,255 | 16,654,308 | 7.88% |
NON-MARK-UP/INTEREST INCOME |
|
|
|
Fee and commission income | 5,295,245 | 4,144,073 | 27.78% |
Dividend income | 101,797 | 103,198 | -1.36% |
Foreign exchange income | 3,116,980 | 1,498,410 | 108.02% |
Income/(loss) from derivatives | – | – |
|
Gain /(loss) on securities | (1,167,204) | 84,805 | – |
Other income | 63,615 | 269,272 | -76.38% |
Total non-mark-up/interest income | 7,410,433 | 6,099,758 | 21.49% |
Total income | 25,377,688 | 22,754,066 | 11.53% |
NON-MARK-UP/INTEREST EXPENSES |
|
|
|
Operating expenses | 12,982,036 | 11,797,688 | 10.04% |
Workers Welfare Fund | 245,636 | 197,947 | 24.09% |
Other charges | 101,813 | 31,105 | 227.32% |
Total non-mark-up/interest expenses | 13,329,485 | 12,026,740 | 10.83% |
Profit before provisions | 12,048,203 | 10,727,326 | 12.31% |
(Provisions)/reversal and write offs – net | (419,546) | (382,427) | 9.71% |
Extra-ordinary / unusual items | – | – |
|
Profit before taxation | 11,628,657 | 10,344,899 | 12.41% |
Taxation | (4,666,911) | (3,923,994) | 18.93% |
Profit after taxation | 6,961,746 | 6,420,905 | 8.42% |
Earnings per share – Basic and Diluted (in Rupees) | 6.34 | 5.90 | 7.46% |
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