BAHL announces 115pc profit growth

KARACHI: Bank AL Habib Limited (BAHL) on Wednesday reported a 115 percent surge in its annual profit for 2023, driven by higher interest income and fee income.

The bank earned Rs35.93 billion in the year ended Dec. 31, 2023, up from Rs16.69 billion a year earlier, according to a filing to the Pakistan Stock Exchange (PSX).

Earnings per share (EPS) rose to 32.33 rupees from 15.01 rupees in 2022.

The bank’s board of directors recommended a final cash dividend of Rs5 per share, or 50 percent, bringing the total dividend for the year to Rs14 per share, or 950 percent.

The bank’s net interest income, the difference between interest earned and interest paid, jumped 60.6 percent to Rs124.14 billion, as its interest-earning assets grew 86.1 percent to Rs373.89 billion.

The bank’s non-markup income, which includes fee income, foreign exchange income and share of profit from associates, increased 12.9 percent to Rs24.35 billion.

The bank’s share of profit from associates, mainly from its stakes in Habib Bank AG Zurich and Habib Metropolitan Bank, rose 45.6 percent to Rs1.13 billion.

The bank’s foreign exchange income, however, declined 5.5 percent to Rs6.84 billion, due to lower volatility in the currency market and reduced margins.

The bank’s total expenses increased 36.5 percent to Rs72.31 billion, mainly due to higher operating costs, which rose 35.7 percent to Rs70.53 billion. The bank’s provision for bad loans decreased 18.4 percent to Rs1.78 billion.

Soneri Bank’s profit surges threefold in 2023

Soneri Bank Limited (SNBL) on Wednesday reported a more than threefold increase in its annual profit for 2023, boosted by higher interest income and lower provisions.

The bank posted a net profit of Rs6.08 billion, or Rs5.51 per share, for the year ended Dec. 31, 2023, compared with Rs1.88 billion, or Rs1.71 per share, a year earlier.

The board of directors declared a final cash dividend of Rs3 per share for 2023, the bank said in a filing to the PSX.

Soneri Bank's net interest income rose by 102 percent to Rs22.76 billion in 2023, from Rs11.27 billion in 2022, as interest-earning assets grew by 55.5 percent to Rs98.03 billion.

The bank's total non-markup income, which includes fees, commissions and foreign exchange income, increased by 25.2 percent to Rs6.46 billion in 2023, from Rs5.16 billion in 2022.

The bank also reversed provisions of Rs1.39 billion in 2023, compared with an expense of Rs374.57 million in 2022, as it improved its asset quality and recoveries.

The bank's total non-markup expenses, which include administrative and operating costs, rose by 26.4 percent to Rs15.47 billion in 2023, from Rs12.24 billion in 2022, mainly due to inflation and business expansion.