Bank Al Habib Posts a 9.57% Decline in Profits in Q1 2018

Bank Al Habib (BAHL) announced its Q12018 financial results,  posting a profit after tax of Rs 2.08 billion, down by 9.57% as compared to Rs 2.30 billion for the corresponding period last year.

Earnings per Share (EPS) of the bank were recorded at Rs 1.88 per share as compared to Rs 2.07 last quarter.

On a sequential basis, the bank reported a decline primarily on account of higher administrative costs and higher effective tax rate in the previous quarter.

On the expenses front, Administrative Expenses growth clocked in at 13% YoY.

In Q1CY18, gross yield improved to 53.3%, which is attributed to possible deleveraging of balance sheet where interest rate hike’s impact would be seen in the next quarter.

The bank’s Net Interest Income (NII) clocked in at Rs 7.03 billion during the quarter, posting an increase of 13% YoY.

The bank’s loan book expanded by 12.6 billion, standing at Rs 352.42 billion by March 31, 2018, showing growth of 3.70 percent in net advances, compared to last year. Advances to Deposits Ratio (ADR) of the bank now stands at 49.07%.

BAHL’s shares closed at Rs 76.62, up by Rs 1.62 with a turnover of 1.43 million shares.

Comparison of Key Financials
Unconsolidated Profit and Loss Account – For the Three Months Ended, March 30th 2017
Key Financials March 2018 March 2017 % Change
Amounts in PKR ‘000
Net mark-up/return/interest earned 13,206,676 12,143,062 8.76%
Net mark-up/return/interest earned after provisions 7,303,884 6,204,191 17.73%
Fee, commission and brokerage income 916,750 811,387 12.99%
Dividend Income 66,297 79,634 -16.75%
Income from Foreign Currencies 242,012 81,556 196.74%
Capital gain on sale of securities – net 46,710 732,647 -93.62%
Other income 242,081 317,528 -23.76%
Total non-mark-up/interest income 1,502,706 2,008,828 -25.19%
Administrative Expenses 5,354,877 4,752,755 12.67%
Other provisions – net 23,748 20,851 13.89%
Other charges/reversals 70,648 73,802 -4.27%
Total non-mark-up/interest expenses 5,401,777 4,805,706 12.40%
Profit before Taxation 3,404,813 3,609,739 -5.68%
Taxation 1,317,233 1,304,928 0.94%
Profit after Taxation 2,087,580 2,304,811 -9.43%
EPS – Basic and diluted 1.88 2.07 -9.18%

 


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