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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