KARACHI – The Habib Financial institution Restricted (HBL) in the present day declared a consolidated revenue after tax (PAT) of Rs12.1 billion for H1 2022, decrease than the Rs18.zero billion in H1 2021 on account of the extraordinarily excessive and retrospective taxes introduced within the Federal Funds.
Earnings per share for the quarter have been Rs2.32, bringing earnings per share for the half yr to Rs8.10. Together with the outcomes, the Financial institution declared a dividend of Rs1.50 per share (15%) for the second quarter ended on June 30, 2022, extra in keeping with the outcomes.
The Financial institution’s revenue earlier than tax was Rs34.6 billion for H1 2022, 11% increased than the revenue of Rs31.2 billion in the identical interval final yr.
HBL has grow to be the primary financial institution to realize a Stability Sheet measurement of Rs5.zero trillion, pushed by robust deposit mobilization. Complete deposits reached Rs3.eight trillion, a progress of Rs370 billion over December 2021. Robust mobilization efforts resulted in a 10% progress in home deposits, which reached Rs3.four trillion with market share rising to 14.32%. In step with its acknowledged intent and dedication, HBL continues to help prospects via these troublesome instances, standing prepared and prepared to fulfill shoppers’ demand for credit score. In simply the primary six months, the Financial institution’s complete advances grew by 10% over December 2021 to Rs1.7 trillion with progress throughout all lending companies.
The Financial institution’s internet curiosity earnings grew by 14% over H1 2021 to Rs73.9 billion as the common steadiness sheet grew by over Rs500 billion though spreads declined marginally. Price earnings continued on an upward trajectory, growing by 28% over the primary six months of the earlier yr. Whereas all enterprise segments confirmed progress in charges, this was predominantly pushed from the Financial institution’s flagship playing cards enterprise, aided by robust contributions from money administration, branchless banking, house remittances and commerce companies. The Financial institution’s complete income thus elevated by 18% over H1 2021 to Rs97.6 billion.
Regardless of excessive double-digit inflation and HBL’s continued funding in individuals, expertise and infrastructure, administrative bills remained flat to the earlier quarter with the price / earnings ratio decreased from 59.6% in Q1 2022 to 55.1% in Q2 2022. Complete credit-related provisions of the Financial institution decreased by 43% over H1 2021 to Rs2.6 billion which incorporates incremental normal provisions of Rs1.three billion. The Financial institution’s prudent danger administration enabled HBL to take care of the An infection ratio at its all-time low degree of 5.1% with complete protection at over 100%.
Commenting on the Financial institution’s H1 2022 efficiency, Muhammad Aurangzeb, President & CEO – HBL stated “For HBL, consumer centricity is the bedrock of each our enterprise and tradition. Our enterprise outcomes are the result of delivering on the Financial institution’s strategic goals of supporting shoppers and enjoying our half in supporting the nation’s economic system. HBL has made outstanding progress in digitalization, monetary inclusion and, because the ‘Champion Bank for Balochistan’, stepped as much as play its half for the province on the again of many developmental firsts.“
HBL’s flagship Shopper Banking enterprise continues to dominate the market throughout a variety of metrics. Through the first six months of 2022, lending elevated to Rs118 billion; concurrently HBL turned the primary financial institution in Pakistan to have a bank card portfolio of over Rs20 billion. 1 out of each three Rupees spent on bank cards in Pakistan is on the HBL Credit score Card. Throughout H1 2022, HBL Status branches have been inaugurated in Faisalabad, Multan and Karachi, taking the entire footprint to 29 lounges in 12 cities.
Lending to the agriculture sector, the place the Financial institution stays dominant, reached a report excessive of Rs44 billion. HBL microfinance stepped up its help to these most in want of financing with a 27% progress in lending with complete loans crossing Rs72 billion. HBL and HBL Microfinance Financial institution have each been declared by SBP as “Prime Ranked Agri Lending Financial institution” amongst giant banks and microfinance banks respectively.
The Financial institution continues to guide in innovation. In one more “industry-first”, HBL has enabled prospects to carry out fundamental monetary transactions via the Conversational Banking channel on WhatsApp. HBL Cell and Web Banking customers reached almost three million; in June 2022, over 10 million monetary transactions have been processed via Cell/Web and to date this yr, now we have processed transactions totaling over Rs1 trillion, the identical throughput as for the entire of final yr. HBL maintained its main place in money administration, with throughput rising by 66% to just about Rs6 trillion in H1 2022. Digital funds via HBL Pay Enterprise Banking grew to round Rs3.2 trillion with 19 million transactions efficiently processed. HBL Konnect stays the popular supply associate for the GoP, serving to the Authorities disburse gasoline subsidies to greater than 6 million beneficiaries.
HBL maintains its management within the ESG space, particularly on environmental points. Throughout H1 2022, HBL disbursed Rs 7.eight billion below the SBP’s Renewable Power scheme. HBL has contributed to a number of reforestation tasks in Pakistan; lately, our workers volunteered in a drive for mangrove reforestation to guard Karachi’s endangered shoreline. Throughout this quarter, HBL issued its first Sustainability Report, highlighting the complete scale of its actions during the last a number of years. In 2022, the Financial institution additionally elevated its contribution to the HBL Basis by 50%, from 1% of PAT to 1.5% of PAT, enabling us to additional strengthen help to deserving causes.
The Financial institution’s variety ratio continues to enhance with 20.7% of our staff being ladies. HBL gained eight awards within the 2021 International Variety and Inclusion Benchmark awards within the classes of Greatest Apply in Pakistan and Most Progressive in Pakistan. Throughout H1 2022, HBL gained the 2022 Euromoney Award for “Best Bank in Pakistan” and the 2021 Asiamoney Award for “Best Domestic Bank.” HBL additionally gained awards for Greatest Inexperienced Bond and Greatest Structured Finance Deal 2021 from The Asset Triple A Sustainable Capital Markets Nation & Regional Awards 2021. Other than the popularity, these are gratifying as they symbolize impartial validation of our efforts from internationally recognised publications.