Karachi August 27 2024: HBL, the largest bank of Pakistan, declared a consolidated profit after tax of PKR 29.1 billion, increased by 10 percent YoY, as earnings per share improved from PKR 17.86 in H1’23 to PKR 20.18 in H1’24.
Along with the results, the Bank declared an interim Cash Dividend of PKR 4 per share (i.e. 40 percent) for the second quarter. This is in addition to the interim Cash Dividend already paid of PKR 4 per share (i.e. 40 percent).
Bank post profit before tax of PKR 57.8 billion for the first half of 2024, 12 percent higher than in the same period last year. All businesses continued to demonstrate strong growth in drivers, leading to record profit.
HBL’s balance sheet footing increased to PKR 6.2 trillion with total deposits closing at PKR 4.8 trillion, an impressive growth of more than PKR 700 billion over December 2023. This was largely driven by domestic deposit growth which enabled HBL to increase its market share from 12.4 percent in December 2023 to 13.3 percent in June 2024. Low-cost deposits steered ~60 percent of the growth, with the CASA ratio improving to 87 percent.
Credit demand in the country has remained low. Nevertheless, domestic advances increased by 2.2 percent during the quarter, with total advances at PKR 1.8 trillion. The Bank’s market-leading Consumer business continued marching on its growth trajectory, reaching PKR 133.8 billion in June 2024.
Volumetric expansion in both the domestic and international markets helped drive a growth in net interest income, to PKR 121.6 billion. Non-fund income increased by 64 percent over the same period last year, to nearly PKR 40 billion. HBL continued to maintain leadership in fee income, which posted a stellar growth of 22 percent increasing to PKR 24.2 billion in H1’24. The flagship Cards business contributed nearly half of the fee growth, while branch fees also rebounded. Consequently, HBL’s total revenue increased by 17 percent to PKR 161.1 billion.
Despite persistent high inflation, a focus on costs enabled HBL to reduce expenses over the previous quarter, with the cost / income ratio declining from 57.2 percent in Q1’24 to 56.7 percent in Q2’24. The strong results led to growth in internally generated capital, raising the Tier-1 Capital Adequacy Ratio to 12.65 percent and total CAR to 16.32 percent, and also enabling a continued higher dividend payout.
Commenting on the Bank’s results, Muhammad Nassir Salim, President & CEO – HBL, said, “HBL’s strong H1’24 performance reflects our commitment to innovation, expanding our digital footprint, and providing best-in-class financial solutions for all segments of our client base. In recognition of these efforts, Euromoney, the prestigious international publication, declared HBL Pakistan’s Best Bank. Looking ahead, the Bank will continue to prioritize its clients’ financial well-being and play its part in Pakistan’s economic development.”
