Habib Bank Limited (HBL), a prominent financial institution listed on the Pakistan Stock Exchange (PSX), has disclosed its financial results for the first half of the fiscal year ending June 30, 2023. The bank reported a robust profit of Rs26.34 billion, with earnings per share (EPS) amounting to Rs17.86.
This significant surge of 2.17 times year-on-year (YoY) marks a considerable improvement compared to the same period last year, during which the bank’s profit stood at Rs12.11 billion with an EPS of Rs8.10.
Simultaneously, HBL’s board of directors has also announced an interim cash dividend of Rs2 per share, equivalent to 20% for the period ending June 30, 2022.
Examining the income statement, the bank’s net interest income (NII) experienced substantial growth, reaching Rs113.95 billion, reflecting a notable increase of 54.21% compared to the previous year. This remarkable growth in NII can be attributed to a surge in interest-earning, amounting to Rs131.56 billion, representing a substantial 70.12% YoY rise.
On the other hand, the bank’s Non-Markup Income (NMI) witnessed a modest increase of 1.71% YoY, totaling Rs24.08 billion. Notably, the bank’s other income witnessed a significant rise, soaring to Rs4.17 billion, in contrast to Rs236.54 million in the same period last year. However, the bank’s NMI was impacted by losses from derivatives, which rose significantly by 4.7 times to Rs5.15 billion.
Additionally, HBL incurred a provision expense of Rs6 billion during the review period, in contrast to the provision and write-offs amounting to Rs2.80 billion in the corresponding period last year. Regarding taxes, the bank paid Rs25.17 billion, reflecting an 11.94% increase from the amount paid in the first half of the calendar year 2022.
The bank’s effective management of interest income and expense, coupled with the growth in non-mark-up income, has contributed to its remarkable financial performance for the first half of 2023, positioning HBL favorably in the competitive banking landscape.