After a decline of 9% profit in the first quarter of 2016 due to major expenses on the account of Pakistan Super League, Habib Bank Limited (HBL) revived the growth in profitability in the second quarter by 19.5 percent.
According to the financial results, HBL made a profit of Rs 6.93 billion in the quarter of April to June 2016 as compared with previous year’s profit of corresponding period which stood at Rs 5.80 billion.
With the negative growth of 9% in the first quarter and positive growth of 19.5 percent, the bank managed to make a positive growth of Rs 1.4% in the overall first half of 2016, at a time when policy rate reached below four-decade low and the banking industry is also bearing the brunt of new taxes.
In the first half of January to June, HBL made a record profit of Rs 16 billion (Rs 15.97) as against of Rs 15.7 billion for same period of 2015.
The bank witnessed a growth of 6.4% in its interest income which was presumed to go down since the interest rate stayed at 5.75 percent in the country. It earned Rs 70.70 billion as interest income whereas its mark-up expenses stood at Rs 29.28 billion. This totaled a net income of Rs 41.4 billion for the bank.
The bank showed a decline of 14% in non-interest income which stands at Rs 9.7 billion by end of June 2016 as against of Rs 8.07 billion recorded by end of June 2015. The decline of income from this avenue was due to slash in securities gains and drop in margins of foreign currency trade.
The administrative expense of HBL saw an increase of Rs 2.3 billion from the previous year. They increased to Rs 25.3 billion from Rs 23 billion in administrative expenses recorded in the similar period of 2015
HBL overall revenues showed a meager decline which stands at Rs 54.3 billion by first half of 2016 as compared with Rs 54.6 billion recorded in the corresponding period of 2015. Contrary, HBL tax to the government declined to Rs 12.3 billion from Rs 15 billion because of income decline through non-
interest sources.
HBL announced a second quarter dividend of Rs3.50per share (35%) to its shareholders.
You have reported only Consolidated Profit of Group. Actually HBL profit from Banking has been decreased from PKR 16.913B to PKR 15.133B while quarterly profit has also been decreased from PKR 7.473B to PKR6.614B.
Good Luck HBL in 2nd Half year of 2016.