Imposition of super tax drags Habib Metropolitan’s earnings down by 2%

April 22, 2019 (MLN): Habib Metropolitan Bank Limited (HMB) has announced its financial results for 1QCY19, as per which the company has posted net earnings of Rs. 1.6 billion, down by 2.09% as compared to same period last year. The bank’s EPS stood at Rs. 1.45 (down, 3.33%)

The Bank initially made a good start by recording an increase in net interest income by 21.8% as a result of interest rate reversals. Similarly, total non-mark-up income grew by 15.8% due to growth in fee income and income from foreign exchange by 27.9% and 68.8% respectively.

The bank’s profits, however, took a U-turn towards south after taxation expense jumped by 87%. This was attributable to higher effective tax rate, given the compulsion on banking sector to record a 4% Super Tax on CY17 profits during 1QCY19, as part of the recent mini budget.

Nevertheless, the bank performed way better than the projections put forward by brokerage houses, which ranged from 12% to 36% decline in Profit after Tax whereas the actual decline was only 2.09%.

Profit and loss account for the quarter ended March 31 2019 (Rupees'000)

 

Mar-19

Mar-18

% Change

Mark-up / return / interest earned

14,166,590

9,927,296

42.70%

Mark-up / return / interest expensed

-9,537,396

-6,127,441

55.65%

Net mark-up / interest income

4,629,194

3,799,855

21.83%

NON MARK-UP / INTEREST INCOME

   

Fee and commission income

1,193,446

932,723

27.95%

Dividend income

24,507

9,349

162.13%

Foreign exchange income

457,628

270,977

68.88%

Income / (loss) from derivatives

 

Gain / (loss) on securities

10,578

18,210

-41.91%

Other income

111,647

320,647

-65.18%

Total non-mark-up / interest income

1,797,806

1,551,906

15.85%

Total Income

6,427,000

5,351,761

20.09%

NON MARK-UP / INTEREST EXPENSES

   

Operating expenses

3,150,644

2,780,117

13.33%

Workers welfare fund

61,829

49,460

25.01%

Other charges

714

158

351.90%

Total non-mark-up / interest expenses

-3,213,187

-2,829,735

13.55%

Profit before provisions

3,213,813

2,522,026

27.43%

(Provisions) / reversal and write offs – net

-133,628

-97,421

37.17%

Extra ordinary / unusual items

 

PROFIT BEFORE TAXATION

3,080,185

2,424,605

27.04%

Taxation

-1,476,675

-786,910

87.65%

PROFIT AFTER TAXATION

1,603,510

1,637,695

-2.09%

Basic and diluted earnings per share

1.45

1.50

-3.33%

 

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Posted on: 2019-04-22T13:42:00+05:00

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