Our Special Correspondent
Habib Bank Limited (HBL) has declared a profit after tax of Rs 4.7 billion, with earnings per share for the first quarter 17 (Q1- 17) at Rs 3.12. Along with the results, the Board declared a dividend of Rs 1 per share (10 percent). Profit before tax was Rs 7.4 billion for the first quarter of 2018. The consolidated Capital Adequacy Ratio (CAR) as at March 31, 2018, increased to 16.5 percent with the Tier 1 CAR at 12.3 percent.
HBL’s core domestic business remains strong, with steady growth and improvement in key drivers. Total domestic deposits increased by 3 percent, crossing Rs. 1.8 trillion and increasing market share to 14.4 percent.
The bulk of the growth came from CASA deposits as a result of which, the CASA ratio improved to 86.5 percent as at March 31, 2018. The domestic loan book increased by Rs 26 billion during the quarter with the ADR rising to nearly 43 percent.
Average domestic loans grew by 29 percent, with positive contributions from all business segments and average domestic current accounts for the first quarter of 2018 increased by Rs 86 billion over Q1 17. However, with continued margin compression and reduction in the international balance sheet from the Bank’s de-risking exercise, overall net interest income declined slightly compared to Q1 17, by 0.8 percent to Rs 20 billion. With a steady stream of recoveries, total provisions for the quarter recorded a reversal of Rs 111 million compared to a charge of Rs359 million in Q1 17. The NPL coverage ratio remains strong at 90.5 percent.
HBL widened its reach further during the quarter, adding over 300,000 customers and expanding its contact points with the addition of new ATMs and POS terminals. The Bank now reaches customers through over 1,700 branches, 2,044 ATMs and nearly 18,600 POS machines across Pakistan.
The Bank has embarked on a global business and compliance transformation project and will continue to invest in this area, in state of the art technology, and in building on its market-leading brand presence. HBL’s core businesses remain on track and the Bank has adequate reserves of liquidity and capital.
HBL is conscious of its responsibility towards the development of Pakistan and the financial inclusion of the country’s population and is committed to remaining at the forefront of these activities.