Habib Metropolitan Bank has recorded modest profit growth of 4 percent in the first quarter of 2020.
According to the financial results, the bank recorded a profit of Rs 1.63 billion during the first quarter of 2020, January to March, as compared to Rs. 1.56 billion recorded in the similar period of 2019.
The bank made a little less growth in its interest income but has made good margins from its non-interest avenues in the said period. The bank earned Rs. 4.48 billion from the interest income this year and Rs. 6.77 billion from the non-markup income.
This is a good start of a challenging year, although it is a daunting task to keep the profit growth on track in the remaining period of 2020 mainly due to the current situation of economic slowdown which is set to continue for a longer period of time.
Not only policy rates were drastically slashed by 4.25 percent in the recent week which ultimately reduced the interest income of the bank but also the lockdown in relation with COVID-19 pandemic and the multiple relief schemes introduced to borrowers could hurt the business of the bank like its peer banks.
On the other hand, there are various schemes introduced by the State Bank of Pakistan to stimulate the economy which could be capitalized by the bank with its available strength and innovative strategy to maintain the growth in profitability.
The bank operates 362 branches with 31 Islamic branches and 3 0 sub-branches.
Earnings per share of HabibMetro Bank increased to Rs. 1.48 from Rs. 1.14