Habib Metropolitan Bank’s Profits Decline by 29% in Q3 2017

Habib Metropolitan Bank posted a net profit of Rs. 1.01 billion in the July-September period of 2017, which is down 29.37 % from Rs. 1.43 billion a year ago, according to the bank’s quarterly financial accounts released on Thursday.

The earnings announcement did not contain a cash dividend.

Earning per share also declined to Rs. 0.97 as compared to Rs. 1.37 in the same period last year.

The loss in earnings can be attributed to a capital loss of Rs. 405 million recorded during Q3 2017 which dragged the earnings during the third quarter.

During the Q3 2017, HMB posted 21% YoY higher Net Interest Income (NII) as the bank witnessed 7% YoY decline in Interest Expenses.

The bank’s Provisioning Expenses were also almost nil, while Fee Income improved by 20% YoY during Q3 2017.

The administrative expenses jumped by 8.33% to Rs. 2.6 billion as compared to Rs. 2.4 billion in the same period of last year. Sequential earnings before tax dropped by 21% YoY due to a loss realized on the sale of securities, while NII remained at Q2 2017 levels.

It also announced its results for first 9 months of 2017, posting a profit after tax of Rs. 3.25 billion down 15% YoY as compared to Rs. 3.81 billion.Third quarter earnings for 2017 clocked-in at Rs. 1.01 billion, down 29% YoY.

Habib Metropolitan Bank’s Net markup income after provisions for the period increased by 25%, amounting to a total of 9.65 billion Rupees during the nine months ended September, 30th 2017

Bank’s total non-markup interest income for the period decreased by 30.45% during the nine months.

Total non-mark-up/interest expenses for the period increased by 16% taking away a total of Rs. 8.11 billion from the bottom line in last nine months

Habib Metropolitan script at the bourse was trading at Rs. 32.94 gaining +1.35% with a turnover of 30,500 shares.

The bank was recognized with the “Best SME Deal of the Year” by the Asian Development Bank in 2017. Earlier in 2016, the bank was awarded as the ADB’s “Leading Partner in Pakistan” for the 2nd consecutive year, in addition to the winning the ‘Leading SME Trade Bank’ award.

The bank continues to expand its footprint across Pakistan with a growing network of 308 branches in 88 cities across Pakistan, with an aim to further enhance its outreach in 2017.

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