HBL half-year profit soars to Rs16bn

HBL half-year profit soars to Rs16bn

HBL half-year profit soars to Rs16bn KARACHI: Habib Bank Limited (HBL) posted a consolidated after-tax profit of Rs16 billion for the first half of 2016, with earnings per share rising to Rs10.86, it announced on Thursday.

Along with the results, the bank declared a second-quarter dividend of Rs3.50 per share (35 per cent).

Domestic deposits increased by 9pc and the bank’s market share rose to 14.3pc. The deposit mix continued to improve and current accounts now form 34.7pc of total deposits.

Average current accounts for the January-June period increased by Rs78bn compared to the same period a year ago, enabling HBL to reduce its cost of domestic deposits to 2.8pc. With average domestic loans also growing across all segments, the bank was able to grow net interest income by 6pc to Rs41.4bn.

According to Topline Securities, HBL’s net interest income during the second quarter of this year rose 7pc year-on-year to Rs21.2bn due to volumetric deposit growth and improving deposit mix.

Non-interest income, on the other hand, was down 19pc to Rs7.8bn in the second quarter of 2016, due mainly to sharp fall in capital gains as the bank booked gains of Rs1.4bn compared to Rs3.1bn in the same period of the last year.

On a quarter-on-quarter basis, earnings were down 24pc due to higher effective tax during the second quarter as the government imposed 4pc super tax in the federal budget 2016-17, the bank said. However, pre-tax profits were up 4pc quarter-on-quarter driven by 19pc uptick in non-markup income (higher capital gains) and 5pc increase in net interest income.

Bank Al Habib (BAHL): The bank posted after-tax profit of Rs3.786bn for the half-year ended June 30, 2016. “The after-tax profits grew 13pc year-on-year at a time when banking sector profits were supposed to be under huge pressure. BAHL has done a commendable job in reducing cost of deposits, evident by a sharp decline in mark-up expenses and a much improved gross spread ratio,” the bank said in a statement.

Source: http://www.dawn.com/news/1278456/hbl-half-year-profit-soars-to-rs16bn

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