Bank Al Habib Limited (BAHL) has announced 11 per cent fall in after tax profit for calendar year 2022 due to higher provision and tax charges.
The bank reported Rs16.57 billion profit after tax for the year ended December 31, 2022 as compared with Rs18.70 billion in the preceding year.
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Earnings per share (EPS) for the year recorded at Rs14.9 as compared with EPS of Rs16.8.
Analysts at Insight Securities attributed the fall in profit of the bank to higher provision and tax charges.
Along with the result, the bank announced cash dividend of Rs7 per share.
Net Interest Income for CY22 clocked in at Rs77.3 billion vs. Rs55.4 billion in SPLY, up by 39 per cent YoY. On QoQ basis, NII recorded an increase of 11 per cent in 4QCY22, to clock in at Rs22.7 billion.
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Non Markup Income recorded an increase of 51 per cent in CY22, mainly attributable to rising contribution from fee & commission income which was further catalyzed by foreign exchange income. However, On QoQ basis, non-markup income fell by 15 per cent, owing to lower foreign exchange income.
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The bank has recorded provision charges of Rs12.8 billion in CY22 vs. reversal of Rs48 million in SPLY. To note, company recorded provisioning of Rs10.4 billion in 4QCY22.
During CY22, operating expense increased by 34 per cent YoY, possibly due to branch related expenses and inflationary pressures.
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Effective tax rate for 4QCY22 clocked in at ~60 per cent, while ETR for CY22 recorded at ~50 per cent.
