HBL’s third-quarter profit down 15pc

KARACHI: Habib Bank Limited (HBL) on Wednesday reported a 15 per cent decrease in its third-quarter net profit, due to an increase in interest expensed income.

In a statement to the Pakistan Stock Exchange (PSX), the bank reported a net profit of Rs14.197 billion for the quarter that ended September 30, up from Rs16.631 billion during the same period last year.

The bank also announced an interim cash dividend of Rs4 a share, which is in addition to the interim cash dividend already paid at Rs8 per share. Earnings per share came in at Rs9.85 a share, compared with Rs11.34 a share last year.

The bank said its interest earned income for the quarter rose to Rs217.89 billion, compared with Rs190.77 billion during the same period a year earlier. Interest expensed income also remained higher at Rs154.17 billion from Rs125.78 billion a year ago, which decreased the profit margin.

For the nine months that ended September 30, the bank reported a net profit of Rs43.254 billion, up from Rs42.971 billion during the same quarter last year.EPS for the nine months was recorded at Rs30.03 against Rs29.20 a share last year.

According to a press release, HBL’s balance sheet footings grew by 12 per cent over December 2023 to Rs6.2 trillion resulting from Rs660 billion growth in deposits, which rose to Rs4.8 trillion. Domestic deposits increased by 18 per cent over December 2023 to Rs4.1 trillion, the bank’s advances increased by 3.9 per cent during the quarter to Rs1.8 trillion.

Commenting on the bank’s results, President & CEO of HBL Muhammad Nassir Salim said, “HBL’s 9M’24 results were driven by leadership position across all business segments, and a focus on serving our clients better. HBL continues to accelerate its digital journey, with majority of its transactions and volumes now being channelled through its digital platforms. We remain committed to our strategic priorities such as agriculture, SMEs, and sustainability. HBL continues to contribute to the national exchequer through its significant tax payments. HBL was honoured with the ‘Best Board of the Year’ award by the Pakistan Institute of Corporate Governance (PICG), in recognition of its exemplary leadership, outstanding governance, and strategic oversight.”

HBL’s mobile and internet banking witnessed a year-on-year growth of 34 per cent in financial transactions and 26 per cent in service requests, with over Rs2 trillion processed in Q3’24.Konnect by HBL, processed a significant volume of Rs586 billion, reflecting a year-on-year growth of 16 percent.

HBL’s support to the agriculture sector remains strong with total lending exceeding Rs57 billion. HBL’s resolve to grow the SME business has led to accelerated growth in advances registering a year-on-year increase of 19 per cent to Rs91 billion.