Bank Al Habib Limited posted a profit after tax of Rs. 18.70 billion, showing a modest increase of 5 percent compared to the previous year.
The bank’s profit before tax was recorded at Rs. 30.27 billion, translating into earnings per share (EPS) of Rs. 16.83 as against Rs. 16.03 per share for the previous year.
The bank’s interest income decreased to Rs. 55.6 billion in 2021 from Rs. 57.6 billion in 2020.
The bank managed to significantly increase its fee and commission income by 40.21 percent as compared to the last year. The bank reported an increase in foreign exchange income by 38.60 percent. Dividend income for the year ended December 31, 2021, was recorded at Rs. 655.08 million.
Financial Indicators
Total Assets of the bank reached Rs. 1.85 trillion, an increase of 21.52 percent as compared to December 31, 2020. Net loans and advances grew by 43.81 percent to reach Rs. 733.80 billion whilst the investments increased by 8.06 percent to reach Rs. 826.60 billion, demonstrating an overall growth in the total assets, compared to the previous year. Due to the bank’s sound risk management practices and prudent financing strategy, the NPL ratio of the bank fell to 1.04 percent.
The bank achieved a coverage ratio of 168.97 percent which reflects the prudent approach adopted towards non-performing loans.
Deposits of the bank increased by 19.11 percent year-over-year bringing the total deposits to Rs. 1.31 trillion as of December 31, 2021. The gross advances to deposit ratio stood at 57.02 percent.
The Board of Directors of Bank AL Habib Limited announced the bank’s financial results for the year ended December 31, 2021, and proposed a 70 percent cash dividend.
Bank AL Habib Opens Over 100 Branches in 2021
The bank continued with its strategy for outreach expansion, adding a significant number of branches every year. The bank opened 107 branches during the year. The bank’s branch network has now reached 956 branches/sub-branches and three booths having coverage in 381 cities in Pakistan, two foreign branches (one each in Bahrain and Malaysia) and four representative offices (one each in Dubai, Istanbul, Beijing, Nairobi) outside Pakistan. In line with the bank’s vision to provide convenience to customers, the bank is operating a network of 1,160 ATMs across Pakistan.
Pakistan Credit Rating Agency Limited (PACRA) has upgraded the bank’s long-term entity rating from AA+ (Double A plus) to AAA (Triple A) while maintaining the short-term entity rating at A1+ (A One Plus). This long-term credit rating (AAA) denotes the highest credit quality with the lowest expectation of credit risk and indicates an exceptionally strong capacity for timely payment of financial commitments. The ratings of unsecured, subordinated Term Finance Certificates (TFCs) were also upgraded from AA (Double A) to AA+ (Double A Plus) for TFC-2018 and from AA- (Double A minus) to AA (Double A) for TFC-2017 (perpetual). The initial rating of unsecured subordinated TFC–2021 issued during the year is AA+ (Double A plus). These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments
