Corporate results: HBL’s profit clocks in at Rs21.8b

Amount 31% higher than 9MCY13

KARACHI: Habib Bank (HBL) made a consolidated profit of Rs21.8 billion in the first nine months of 2014, 31% higher than the earnings of Rs16.6 billion made over the same period the previous year.

According to a notice sent to the Karachi Stock Exchange on Friday, HBL also announced an interim cash dividend of Rs2.25 per share in addition to Rs4.25 per share dividend already announced in the current year so far.

The bank’s net interest income (NII) in January-September increased 22% on a year-on-year basis to Rs49.5 billion. Although banking spreads averaged 6% in the first nine months of 2014 against 6.3% in the same period of the preceding year, NII received support from a higher yield on an expanding Pakistan Investment Bonds (PIBs) portfolio of banks and rising credit growth, according to Topline Securities.

HBL’s non-interest income also increased 27% to Rs14.7 billion due to 33% higher fee income and 53% higher income derived from dealing in foreign currency.

In the third quarter of 2014, HBL’s profits stood at Rs7.3 billion against the profit of Rs8.4 billion in the preceding quarter. High provisions against non-performing loans (NPLs) amounting to Rs930 million and 46% lower dividend income amounting to Rs155 million caused earnings to dip, Topline Securities added.

Published in The Express Tribune, October 25^th, 2014.

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