HBL Profits Down by 48% in H1 2018

As major banks suffered a significant profit cut, Habib Bank Limited also recorded a 48 percent decline in its profitability in the first half of 2018.

According to the financial results, the bank recorded a consolidated profit after tax of Rs 8.1 billion in the first half of 2018 which went down from Rs. 15.6 billion recorded in the same period last year.

The bank’s earnings per share stand at Rs 5.42 whereas the Board declared a dividend of Rs 1.00 per share (10%), bringing the total dividend for the six months of 2018 to Rs 2.00 per share.

HBL’s core domestic business continues on a strong trajectory, with steady growth in key drivers. Total domestic deposits increased by 8% to nearly Rs 1.9 trillion and its leading market share increased further to 14.4%.

In the first six months of 2018 alone, the bank added Rs 119 billion in domestic CASA deposits, and the ratio of current accounts rose to 36.3% in June 2018. Even more impressively, HBL’s average current accounts increased by around Rs 80 billion, a growth of 15% compared to the first half of 2017.

With a renewed focus on robust lending growth, HBL’s domestic loan book increased by Rs 91 billion during the first six months with strong contributions from Islamic Financing, Consumer Lending and Corporate loans.

In the first half of 2018, HBL continued its strong recovery performance, recording a reversal of Rs 240 million against loans, compared to a provision of Rs 564 million in H1 2017. The infection ratio further reduced to 7.6% while the coverage ratio strengthened to 91.7%.

Konnect By HBL

In July, the bank launched its proprietary product, Konnect by HBL. It has received excellent market acceptance and in a few weeks, over half a million customers have been serviced. 25% of Konnect accountholders are women.  Within the first month, nearly 700,000 transactions with a value of over Rs 4.5 billion have taken place via the Konnect platform.

HBL continues to widen its customer franchise and footprint; during 2018, the bank has added over 600,000 customers, supporting them with over 1,700 branches, 2,093 ATMs, 30,000 retail outlets and nearly 19,000 POS machines across Pakistan and digital channels of HBL Mobile and Internet Banking.

HBL is also contributing Rs 100 million towards the construction of the Diamer Bhasha and Mohmand Dams.

The bank has embarked on a global business and compliance transformation project and will continue to invest in this area, in state of the art technology, and in building on its market leading brand presence.


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