HBL exhibits remarkable financial performance in first three quarters
Habib Bank Limited (HBL) has reported a remarkable financial
performance for the first nine months of 2023, achieving a profit of Rs 83.5
billion while actively engaging in sustainable banking practices.
In Q3'23, HBL announced another record-breaking quarterly
profit, with a profit before tax (PBT) of Rs 32.0 billion. The bank's
consolidated PBT for the first nine months of 2023 amounted to Rs 83.5 billion,
marking a 50% increase compared to the same period in 2022.
Despite facing significant tax burdens in the banking
sector, HBL managed to achieve an impressive 82% growth in profit after tax
(PAT) for 9M'23, reaching Rs 43.0 billion, as compared to the
previous year.
Earnings per share for the first nine months rose to Rs 29.20, up from Rs 15.95
in 9M'22. In addition to these financial results, the bank declared an interim
cash dividend of Rs 2.25 per share (22.50%), in addition to the Interim Cash
Dividend already paid at Rs 3.50 per share (35%).
HBL
joins the net-zero banking alliance
HBL's balance sheet exhibited substantial growth, expanding
by 19% since December 2022, reaching a total of Rs 5.5 trillion, primarily due
to robust deposit growth. Domestic deposits increased by over Rs 400 billion
since December 2022 and now stand at Rs 3.3 trillion. HBL's total deposits have
reached approximately Rs 4.0 trillion. In the same quarter, domestic advances
increased by 5%. Despite macroeconomic challenges, consumer loans saw an
increase of Rs 4 billion since December 2022, agriculture lending reached new
highs, and microfinance loans surged by 12%.
The bank continued to benefit from rising interest rates,
with the average domestic balance sheet growing by Rs 433 billion, and net
interest margins improving by 194 basis points. Substantially higher interest
income from international business also contributed to a 53% growth in HBL's
total net interest income, reaching Rs 178 billion. Trade, consumer finance,
and cash management added to this growth, with total fees increasing by 34% to
Rs 30 billion. Overall, HBL's total revenue for the first nine months of 2023
increased by 42%, reaching Rs 216 billion.
HBL
records 50% increase in H1'23 profit, affirms Best Digital Bank status
Despite record levels of inflation, efficient cost
management and robust revenue growth allowed HBL to reduce the cost/income
ratio from 60.0% in 9M'22 to 57.1% in 9M'23. Prudent provisioning practices
ensured that coverage remains in excess of 100%. Strong profitability also
improved the bank's Capital Adequacy Ratio, which increased by 91 basis points
to 16.1%.
Muhammad Aurangzeb, President & CEO of HBL, commented on
the bank's performance, highlighting its record-breaking quarter driven by
excellent results in domestic business segments and enhanced profitability from
the international franchise. He emphasized HBL's commitment to offering
innovative financial products while promoting sustainable practices within the
HBL community and the broader financial services industry. HBL has also shown
dedication to addressing agricultural challenges, food security, and climate
change, with a commitment to the UN Principles of Responsible Banking and a
strong focus on sustainable banking standards in Pakistan.
In terms of business developments, HBL's digital channels
played a vital role in shaping Pakistan's financial landscape, with over 4
million users for HBL Mobile and Konnect by HBL. Digital transactions increased
by 49% compared to the previous year, with over Rs 1.3 trillion processed
through mobile apps. HBL is actively working to digitalize the payments
landscape in Pakistan, with significant growth in e-commerce products and card
usage.
Source: Daily Pakistan