Non-funded income raises HMB’s net profits by 5% YoY in 1QCY20

April 20, 2020 (MLN): Habib Metropolitan Bank has announced its financial results for the first quarter ended March 31, 2020. As per results, the bank has posted its net profits of Rs 1.63 billion (EPS: Rs 1.48), showing an increase of around 5% YoY against net profits of Rs 1.56 billion (EPS: Rs 1.41) of the same period last year.

The slight increase in the profitability of the bank was attributable to increased non-funded income (NFI).

The bank’s interest income went up 47% YoY at Rs 20.87 billion in 1QCY20 on a back of growth in the bank’s credit offtake. However, interest expense also increased by around 70% YoY, which led to a marginal decrease in the bank’s net interest income (NII) by 0.74% YoY during the said period.

During the period under review, the bank’s non-funded income (NFI) increased by 27% YoY driven by foreign exchange income (up by 70% YoY) on the back of volatility in the exchange rate between PKR and USD.  Moreover, increased gains on securities by 10 times YoY to Rs 104 million also pushed up the non-interest income.

The bank’s operating expenses jumped by 14.66% YoY to stand at Rs 3.56 billion while tax expense decreased by 30% YoY, supporting the bottom-line.

Consolidated Profit and Loss Account for the first quarter ended March 31, 2020 (Rupees in ‘000)

Mar-20

Mar-19

% Change

Mark-up/return/interest earned

 20,872,712

 14,166,590

47.34%

Mark-up/return/interest expensed

 (16,390,668)

 (9,651,147)

69.83%

Net mark-up/interest income

 4,482,044

 4,515,443

-0.74%

NON-MARK-UP/INTEREST INCOME

Fee and commission income

 1,354,773

 1,286,418

5.31%

Dividend income

 36,901

 24,507

50.57%

Foreign exchange income

 782,001

 457,628

70.88%

Income/(loss) from derivatives

 –

 –

Gain /(loss) on securities

 104,705

 10,578

889.84%

Other income

 10,477

 18,675

-43.90%

Total non-mark-up/interest income

 2,288,857

 1,797,806

27.31%

Total income

 6,770,901

 6,313,249

7.25%

NON-MARK-UP/INTEREST EXPENSES

Operating expenses

 3,562,300

 3,106,843

14.66%

Workers Welfare Fund

 68,184

 61,829

10.28%

Other charges

 6,404

 714

796.92%

Total non-mark-up/interest expenses

 3,636,888

 3,169,386

14.75%

Profit before provisions

 3,134,013

 3,143,863

-0.31%

(Provisions)/reversal and write offs – net

 (484,126)

 (133,628)

262.29%

Extra-ordinary / unusual items

 –

 –

Profit before taxation

 2,649,887

 3,010,235

-11.97%

Taxation

 (1,011,380)

 (1,449,395)

-30.22%

Profit after taxation

 1,638,507

 1,560,840

4.98%

Earnings per share – Basic and Diluted (in Rupees)

 1.48

 1.41

4.96%

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Posted on: 2020-04-20T11:43:00+05:00

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