KARACHI: The profit-after-tax of Habib Bank Limited (HBL) rose by 18 percent to Rs10.98 billion for the six months (January-June 2012) period ended June 30 from Rs9.28 billion earned in the same period last year.
This translated into earnings per share of Rs9.06 against Rs7.66 in 2011, said profit and loss account of the bank available with the Karachi Stock Exchange.
The board of directors recommended an interim cash dividend of Rs3.50 per share, it added.Farhan Mahmood, an analyst at Topline Securities, said that earnings growth primarily stems from 78 percent growth in net interest income (NII) amid rise in the earnings assets and significant reduction in provisions.
The bank recorded provisioning of Rs2.28 billion in the under review period as compared to Rs4.70 billion incurred in the corresponding period in 2011. “Thanks to restrictive lending and decline in the interest rates. We also expect some provisioning reversals, as well.”
A separate statement of the bank said that HBL became the first Pakistani bank to cross Rs1 trillion-mark in deposits. The domestic deposits of the bank grew by 18.6 percent from year-end.Alone in the last quarter, the bank posted EPS of Rs4.4 against EPS of Rs3.8 during the same period last year, up by 16 percent.