STAFF Reporter
Karachi
HBL held its analyst briefing whereby they discussed the banks’ financials and its future outlook. To recall the bank’s profit went down by 10% YoY to PKR 8,637mn (EPS: PKR 5.89) during 9MCY19 compared with PKR 9,631mn (EPS PKR 6.57) during 9MCY18.
Adjusted for one-offs such as revaluation loss on open FX position (PKR 1.8bn) and capital loss on sale of previously impaired securities (PKR 2.1bn), PBT of the bank during 9M is up 11% YoY. The CEO gave an extensive overview of the revamping of the entire business under the Business transformation program.
Moreover, he spoke of various measures and products the bank has developed for financial inclusion. The president also spoke in detail about the work the bank has put into strengthening the compliance infrastructure of the bank which is upto international standards.
The management once again reiterated that costs associated with business transformation and NY are on a downward trajectory. Business transformation costs are completed for the domestic business while the international business costs will be nominal.
Winding down of NY branch is expected to be completed in 2020.
Cost/Income levels are expected to approach sub 50 levels a couple of years from now. Currently the cost/income stands at 77% whereas normalised cost/income stands at 58% which is more or less at par with the industry trend.
HBL is the lead arranger for the Panda bond issue which will give access to the Govt to Chinese capital markets. It is expected in 1QCY20.
