HMB’s profits edge higher by 8% YoY during CY19

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%.

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