HBL declares profit after tax of Rs 3.2bn for Jan-Mar 2019

KARACHI: HBL on Wednesday declared a consolidated profit after tax (PAT) of Rs 3.2 billion with earnings per share of Rs 2.08 for the first quarter of 2019.

Along with the results, the board declared a dividend of Rs 1.25 per share (12.5pc). Profit before tax for the three months of 2019 was Rs 8.4 billion, an increase of 14 per cent over the same period last year. The retrospective imposition of super tax on 2017 earnings lowered the bank’s profit after tax by Rs 1.9 billion. Without this additional tax, HBL’s PAT would have been Rs5.1 billion, 9pc higher than for Q12018.

HBL’s core domestic business continued to strengthen, with all key business drivers on a positive trajectory. Total domestic deposits increased by 2 per cent to Rs 1.9 trillion while the bank’s leading market share increased further to 14.3 per cent. The bank added Rs38 billion in domestic deposits with healthy growth across all deposit categories and had strong CA and CASA ratios of 37.4pc and 85.1pc respectively, as on March 2019.

More impressively, HBL’s average current accounts grew by Rs 66 billion, a growth of 11 per cent as compared to the first quarter of 2018. Total advances of the bank increased by 1.0 per cent over last year to Rs 1.1 trillion, while its ADR was 54 per cent.

Strong growth in average domestic deposits (growth of Rs 120 billion over Q12018) along with the strong performance of domestic average advances (growth of nearly Rs 200 billion over Q12018) and improvement of net interest margin contributed to domestic interest income increasing by 17 per cent over Q12018.

With the rebuilding of the bank’s international business, its net interest income increased by 19 per cent over the same period last year. Domestic fees grew by 17 per cent YoY, while the total non-fund income of the bank registered a growth of 22 per cent over the same period last year.

Q12019 accelerated the business momentum of 2018. This business momentum was underpinned by the launch of technology backed financial products, upgrading compliance & control frameworks, effective governance structures and the bank’s resolve to do what is “right” and in doing so, aligning itself with best international practices in most spheres of its work.

HBL’s Business Transformation work streams entered into their final stages in Q12019. The bank’s business processes are now more streamlined than ever and scalable to meet enhanced customer service demands. The bank is now closer to its new business norm of conducting “1st class business in a 1st class way”.

Moreover, HBL was recognized as Pakistan’s first ISO certified bank, a global endorsement of HBL’s ability to handle various natures of disasters/interruptions in a well-structured manner through a strong business continuity program (BCP) being in place.

As the largest executor of CPEC-related financing, the bank’s financial commitment to this transformative economic initiative is without par. Underscoring HBL’s expertise, Pakistan’s first Panda Bond mandate was awarded to a consortium led by HBL and comprising China International Capital Corporation Limited (CICC), China Development Bank and Citigroup Global Markets Asia Limited.

During Q12019, HBL continued to be recognized for its superior brand, products and services, as well as for its ability to execute landmark deals. HBL won 2019 Asiamoney Awards for Best Domestic Bank, Best Corporate & Investment Bank and Best Bank for CSR. HBL also won 2019 Global Banking & Finance Awards for the Best Investment Bank Pakistan and Best Sukuk Deal Pakistan. The Asian Banker declared HBL as Best Retail Bank in Pakistan.

 

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