Karachi October 28 2021: HBL’s balance sheet expanded by 6% in the nine months of 2021, to PKR 4.1 trillion, as per information disclosed by the Bank.
Deposit momentum continued from the previous quarter, with total deposits rising to PKR 3.2 trillion, a growth of 12 percent for the nine months of 2021; market share was maintained at over 14 percent. Domestic advances continued their growth trajectory, increasing by 4 percent the quarter; the Consumer business grew its loan book to PKR 95 billion while maintaining its excellent portfolio quality. International balance sheets continued to normalize, with total loans increasing by 20 percent to USD 1.5 billion. Consequently, total advances of the Bank reached PKR 1.4 trillion, an increase of 12 percent over December 2020.
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HBL has delivered a consolidated profit before tax of PKR 46.4 billion in the nine months of 2021, an increase of 8 percent over the PKR 42.9 billion reported in the corresponding period last year. This has been achieved on the back of strong and sustained momentum across all activity drivers, improvement in results from the international business and higher profitability from the subsidiaries. The Bank’s profit after tax increased to PKR 27.0 billion in 9M’21 compared to PKR 25.3 billion in the same period last year. Consequently, earnings per share increased from 17.17 in 9M’20 to PKR 18.21 in 9M’21.
HBL recorded a total revenue of PKR 123 billion for the nine months of 2021. Average deposits increased by PKR 340 billion with average current accounts growing by more than PKR 120 billion. The Bank’s average balance sheet volumes thus increased by over PKR 400 billion, with net interest income of PKR 97.2 billion. Non fund income – excluding capital gains – rose by 45 percent over 9M’20 to PKR 24 billion. Fee income has rebounded strongly in 2021 and remained the primary contributor, increasing by 34 percent over the prior year to PKR 17.9 billion. Cards and Consumer lending recorded yet another standout performance, delivering 60 percent of the fee increase. Domestic trade volumes exceeded the $ 10 billion mark for the first time, driving a 28 percent growth in overall trade fees.
HBL’s administrative expenses of PKR 70 billion for 9M’21 remained flat year-on-year. As a result, the cost to income ratio (excluding capital gains) improved from 60.9 percent in 9M’20 to 57.7 percent in 9M’21. Total provisions reduced by 35 percent over 9M’20, which included PKR 6.0 billion of Covid-related general provision; the specific charge in the current year is primarily due to prudent subjective provisioning. The infection ratio has fallen from 6.3 percent in December 2020 to 5.8 percent in September 2021 and the specific coverage has improved from 86.3 percent to 88.1 percent over the same period; total coverage was maintained at over 100 percent.