HBL today declared a consolidated profit after tax of Rs 8.1 billion, with earnings per share for H1 18 at Rs 5.42. Along with the results, the Board declared a dividend of Rs 1.00 per share (10%), bringing the total dividend for the six months of 2018 to Rs 2.00 per share. Profit before tax for the six months of 2018 was Rs 14.1 billion. The consolidated Capital Adequacy Ratio (CAR) as at June 30, 2018 crossed the 17% mark, rising to 17.1% and the Tier 1 CAR rose by 79 bps over December to 12.8%. During the quarter, the Bank’s credit ratings were also re-affirmed by JCR-VIS at AAA/A-1+ for long term and short term respectively with the rating of its subordinated debt at AA+.
HBL’s core domestic business continues on a strong trajectory, with steady growth in key drivers. Total domestic deposits increased by 8% to nearly Rs 1.9 trillion and our leading market share increased further, to 14.4%. In the first six months of 2018 alone, the Bank added Rs 119 billion in domestic CASA deposits, and the ratio of current accounts rose to 36.3% in June 2018. Even more impressively, HBL’s average current accounts increased by around Rs 80 billion, a growth of 15% compared to the first half of 2017.
With a renewed focus on robust lending growth, HBL’s domestic loan book increased by Rs 91 billion (13%) during the first six months with strong contributions from Islamic Financing, Consumer Lending and Corporate loans; the Bank’s steadily rising ADR improved to 47%, contributing to higher domestic interest income. However, with a reduction in the international balance sheet compared to 2017 levels, total net interest income declined by 2.7% to Rs 40.3 billion. In the first half of 2018, HBL continued its strong recovery performance, recording a reversal of Rs 240 million against loans, compared to a provision of Rs 564 million in H1 2017. The infection ratio further reduced to 7.6% while the coverage ratio strengthened to 91.7%.