HBL announces after-tax profit of Rs. 57.8 billion
HBL has announced its highest-ever annual profit for the year 2023, marking a
significant achievement in its financial performance.
The bank reported a commendable
after-tax profit of Rs. 57.8 billion for the fiscal year ending on December 31,
2023, reflecting an impressive growth of 68 percent compared to the previous
year.
Profit before tax (PBT) surged to Rs. 113.6 billion, showcasing a substantial increase of 47 percent over the PBT recorded in 2022. Earnings per share for 2023 rose to Rs. 39.32, compared to Rs. 23.23 in 2022. Alongside these results, the bank declared a final dividend of Rs. 4.00 per share, bringing the total dividend for 2023 to Rs. 9.75 per share.
HBL
exhibits remarkable financial performance in first three quarters
HBL expanded its balance sheet
by 19 percent to reach Rs. 5.5 trillion. Deposits witnessed robust growth of 19
percent over 2022, reaching Rs. 4.1 trillion, with domestic deposits increasing
by Rs. 533 billion to Rs. 3.5 trillion. Despite macroeconomic challenges, the
bank's total advances grew to Rs. 1.9 trillion over December 2022, with
Consumer loans, agriculture lending, and microfinance achieving notable
milestones.
The bank's average balance sheet increased significantly by Rs. 700 billion, accompanied by a 159 bps improvement in net interest margin due to rising rates. This contributed to a remarkable 46 percent rise in HBL's total net interest income, reaching Rs. 242 billion, the highest in the industry. Additionally, fee income experienced robust growth of 34 percent, amounting to Rs. 42.3 billion in 2023, driven primarily by the Cards business and other sectors like trade, cash management, and retail banking.
HBL
joins the net-zero banking alliance
HBL's total revenue surged by
41 percent to Rs. 300 billion, marking a record high for the bank and the
Pakistan banking sector. The strong revenue base facilitated a reduction in the
cost/income ratio to 56.8 percent in 2023. The bank's prudent provisioning
ensured that the coverage remained well above 100 percent, further boosting the
Capital Adequacy Ratio (CAR) by 118bps to over 16 percent, surpassing
regulatory requirements.
Muhammad Aurangzeb, President & CEO of HBL, attributed the bank's exceptional performance to its commitment to client-centricity, innovation, and responsible banking practices. He highlighted the bank's strategic pillars focusing on growing Pakistan's economy, shaping the financial industry, and achieving regional relevance, emphasizing its impact beyond profit margins through strategic partnerships and impactful initiatives.
HBL
records 50% increase in H1'23 profit, affirms Best Digital Bank status
Under the guidance of the Aga
Khan Development Network (AKDN), HBL remains committed to playing a leading
role in developing the agricultural sector and promoting food security. The
bank has extended over Rs. 100 billion in loans to small farmers and recently
established HBL Zarai Services Limited, an agriculture services extension
company.
Moreover, HBL introduced innovative products to shape Pakistan's financial services landscape, including Digital Invoicing, an Urdu mobile app, and TalkBack for the visually impaired, further solidifying its position as a technology-driven bank. The bank's efforts were recognized with awards such as the Best Bank for Digital Solutions Pakistan by Asiamoney and the Best Digital Banking Services award by the CFA Society Pakistan in 2023.
Source: Pro Pakistani