HBL’s Profit Before Tax Doubles in Q3 2019

HBL declared profit before tax of Rs. 8.4 billion in the third quarter of 2019, more than double over the corresponding period last year. The consolidated profit before tax of Rs. 18.3 billion for the nine months that ended September 30, 2019, is 3% higher than last year.

HBL’s core domestic business continues on a positive trajectory with all drivers showing strong growth. Its international business is also starting to show positive trends.

Along with the results, the board declared a dividend of Rs. 1.25 per share (12.5%). HBL’s earnings per share for 9M 2019 stand at Rs. 5.89. The bank’s profit after tax for this period is lower than last year due to the retrospective imposition of Super Tax on 2017 earnings.

HBL’s total domestic deposits increased by Rs.118 billion, staying above the Rs. 2.0 trillion mark. Most of this growth came from CASA deposits, improving the CASA ratio to nearly 86%. HBL’s total advances increased by more than 8% over last year to Rs. 1.2 trillion.

HBL’s total interest income increased by 23%, to Rs. 74.1 billion. Fees and commission continued impressive growth, increasing by 21% to Rs. 15.5 billion, with Investment Banking, Cards and Trade delivering excellent sustained revenues.

During Q3, HBL also renewed its 12-year strong relationship with VISA. The next phase of this partnership will see the adoption of dynamic methods and the use of technology to take customer convenience and service to greater heights.

CPEC and China related activities occupy a leading position in HBL’s business. In Q3 2019, HBL signed a landmark agreement with Ufone, extending a bilateral Trade Finance Facility in Chinese RMB for the first time, for the import of cellular network equipment through Huawei Technologies Ltd. This agreement improves Pakistan-China relations and allows HBL to provide its customers yet another dynamic financial solution in a global currency.

HBL has renewed its partnership with Benazir Income Support Group’s (BISP) and will focus on introducing initiatives that will provide women an opportunity to open a savings account. Through this agreement, HBL will enable the payment of quarterly stipend of Rs. 5000 under the Government of Pakistan’s Kifalat Program to approximately 6 million women living below the poverty line in Punjab, Sindh and Baluchistan from 2020-2022. This partnership will allow BISP to make use of HBL’s extensive reach through its network of HBL Konnect agents and biometrically enabled ATMs spread across the country.


  • Not a word about the recent (during Q-3) penalty of PKR 320 million imposed on HBL on account of AML/CFT compliance breaches and the repercussions it could have on the bank’s business. It is not the penalty amount per se’ but the damage to its reputation and the trust of its customers and other stakeholders including its investors that gets damaged and could impact many factors/drivers of its various businesses. Hiding such news in their press releases is also unethical and does not serve its stakeholders well.

  • An organization that does not know how to value/ appreciate its human resource. The irony is that the HR keeps trying to figure out why hiring never stops @ HBL. Isn’t it obvious!

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