Karachi, April 24, 2019: Habib Bank Ltd (HBL) consolidated profit after tax declined by 33 percent to Rs3.06 billion during the first quarter of this calendar year (1QCY19) due to the imposition of super tax.
The bank management claimed that the imposition of Super Tax on 2017 earnings results in massive decline the bank’s profit after tax, which lowered by Rs 1.9 billion compared to the first quarter of CY18.
However, the management of the bank claimed that, without this additional tax, HBL’s profit after tax would have been Rs 5.1 billion in the first quarter (Jan-March) of this year, some 9 percent higher than for first quarter of CY18.
The financial resulted of the bank for the first quarter of this calendar year revealed that profit before tax for the Jan-March of CY19 was increased by 14 percent to Rs 8.4 billion. With earning per share of Rs2.08 for this quarter, the bank has announced the first interim cash dividend of Rs1.25 per share.
According to Bank statement issued after the board meeting, HBL’s core domestic business continues to strengthen, with all key business drivers on a positive trajectory. Total domestic deposits increased by 2 percent to Rs 1.9 trillion and leading market share increased further, to 14.3 percent.
More impressively, HBL’s average current accounts grew by Rs 66 billion, a growth of 11 percent compared to the first quarter of 2018. HBL’s total advances increased by one percent to Rs 1.1 trillion while its ADR was 54 percent.
Improvement of Net Interest Margin has contributed to domestic interest income increasing by 17 percent over 1QCY18. With the rebuilding of our international business, the Bank’s net interest income increased by 19 percent over the same period last year. Domestic fees grew by 17 percent YoY, while the total non-fund income of the bank registered a growth of 22 percent over the same period last year.
The first quarter of this year accelerated the business momentum of 2018. This business momentum was underpinned by the launch of technology backed financial products, upgrading compliance & control frameworks, effective governance structures, and our resolve to do what is “right” and in doing so, aligning ourselves with international best practice in most spheres of our work.
As the largest bank in Pakistan, HBL continued to cement its position as the leading Digital Bank in Pakistan, in the way it conducts business and serves its consumer and corporate customers. HBL plans to shape the future through a shift towards a Technology company with a banking license.
Moreover, HBL is also the first bank in Pakistan to have CHIP & PIN functionality enabled across all our new credit and debit cards and acquiring network. The Chip (EMV) cards are more secure as they are more difficult to clone/copy, therefore reducing counterfeit fraud, while providing convenience to customers in the use of HBL cards.
Customer Data protection is something that HBL is keenly aware of as it marches towards a digital future. The completion of SWIFT CSP (Customer Security Program) to enhance the SWIFT security footprint, is an important initiative to secure electronic transactions undertaken by HBL for our clients.
During Q1 2019, HBL continued to be recognized for its superior brand, products, and services, as well as for its ability to execute landmark deals. HBL won 2019 Asiamoney Awards for Best Domestic Bank, Best Corporate & Investment Bank and Best Bank for CSR. HBL also won 2019 Global Banking & Finance Awards for the Best Investment Bank Pakistan and Best Sukuk Deal Pakistan. The Asian Banker declared HBL as Best Retail Bank in Pakistan.
HBL’s title sponsorship of the 4th HBLPSL highlights the Bank’s efforts towards the development of youth and the discovery of talent for Pakistan. This year, we also engaged the overseas Pakistanis in UAE and gave over 1,000 workers an opportunity to witness the exciting games of cricket, free of charge.
The business momentum and accomplishments of Q1 2019 are strong evidence that we remain focused for the balance of 2019, and beyond, in our commitment towards our customers, shareholders and communities at large to take the HBL franchise to the next level, the bank said.
