HBL records 50% increase in H1'23 profit, affirms Best Digital
Bank status
HBL (Habib Bank Limited) has announced a consolidated profit
before tax (PBT) of Rs 51.5 billion for H1'23, showing an impressive 50% growth
compared to H1'22. Notably, the PBT for the second quarter of 2023 reached a
historic high of Rs 30 billion, driven by exceptional performance in its core
business lines.
In addition to the remarkable results, the bank declared an
interim dividend of Rs 2.00 per share (20%), bringing the total payout for
H1'23 to Rs 3.50 per share. The outstanding performance was attributed to the
leading domestic franchise, which witnessed a 63% growth in profits.
Furthermore, the international business contributed to the bank's bottom line
with sustainable and improved operating performance.
Despite the introduction of excessive and unfair taxation in the
Federal Budget, HBL's profit after tax doubled to Rs 26.3 billion, outshining
the corresponding period of the previous year, which was affected by similar
tax measures. The earnings per share for the half-year stood at Rs 17.86,
compared to Rs 8.10 for H1'22.
HBL's balance sheet expanded by 7% from December 2022 to reach
Rs 4.9 trillion, driven by a growth of Rs 224 billion in deposits. The bank
crossed the Rs 3 trillion mark for domestic deposits, with low-cost deposits
witnessing a significant increase of Rs 162 billion. The bank strategically
managed funding costs by capitalizing on cheaper deposits, with over 90% of the
growth coming from this segment.
Amidst a rising interest rate environment, net interest margins
widened by 192 bps, and combined with a growth of Rs 460 billion in the average
domestic balance sheet, resulted in a 53% increase in net interest income.
HBL's total interest income reached Rs 114 billion, with the bank's fee
franchise demonstrating strong performance as fees grew by 31% to nearly Rs 20
billion. The Cards business led the growth, accounting for over 60%, supported
by solid performances in trade, cash management, and consumer finance.
Muhammad Aurangzeb, President & CEO of HBL, attributed the
bank's performance to client-centricity and strong organic growth. He
emphasized the bank's commitment to investing in digital capabilities,
providing the best banking experience, and supporting customers during
challenging periods, with an emphasis on sustainability and community
engagement. HBL's recognition as the 'Best Bank for Digital Solutions Pakistan'
by Asiamoney reflects the trust and confidence millions of clients place in the
bank.
Source: Profit Pakistan