hbl
The profitability of Habib Bank Limited reduced by a record level of 50 percent in the first half of 2019 compared with the corresponding period of 2018.
The massive drop in the profit of the HBL is a bad sign for the banking industry as over Rs. 4 billion evaporated on the balance sheet of one of the leading bank of the country.
According to the financial results, the profit after tax for H1 2019 stood at Rs 3.92 billion compared to Rs 8.12 billion for the same period last year.
The adverse market conditions have impacted the bank’s results. These include a further 15% depreciation in the value of the Rupee and a 9% fall in the continuously declining PSX.
The bank’s board declared a dividend of Rs. 1.25 per share (12.5%).
HBL’s total advances increased by 5.1% over last year to Rs 1.1 trillion as the bank continues to support its customers over the entire spectrum of businesses and segments it serves. Its consumer business, added nearly Rs 4 billion in loans to individuals whilst adhering to sound risk management protocols. Trade volumes improved by 30%.
After a period of consolidation, our international business is returning to growth and profitability as a 30% growth in advances and a 16% rise in deposits have resulted in revenues increasing by 40%.
HBL’s net interest income rose by 20%, driven by a Rs 180 billion increase in average domestic advances, improvement in margins and a return to growth from the Bank’s international business. Domestic fees grew by an impressive 15%, led by the cards business, trade fees and investment banking business delivering a stellar financial performance on the back of landmark deals.
H1 2019 saw HBL hold a market-leading position in most business segments. In the strategically vital CPEC initiative, HBL is the largest executor of CPEC related financing in Pakistan. HBL’s recent partnerships in the development of Rashakai Special Economic Zone (SEZs) and PV Solar projects. HBL remains the largest private sector lender in farmer financing and the largest SME bank in the country.
Recently, Visa has acknowledged that HBL Credit Card is Pakistan’s No. 1 Visa Credit Card portfolio in terms of payment volume; HBL continues to be the market leader in acquiring business with a 17% increase from 2018.
During the year, the bank continued to be recognized, through multiple international awards, for its superior brand, products and services, as well as for its ability to execute landmark deals. HBL was declared Pakistan’s Best Bank by Euromoney. HBL also won 2019 Asiamoney Awards for Best Domestic Bank, Best Corporate & Investment Bank and Best Bank for CSR.
The bank’s title sponsorship of the 4th HBLPSL, a great boost to the brand, also highlights HBL’s efforts towards the development of youth and the discovery of talent for Pakistan.
