HBL announces fall in net profit to Rs23.63 billion in nine months

HBL announces fall in net profit to Rs23.63 billion in nine months

Habib Bank Limited (HBL) on Wednesday announced 12.42 per cent decline in net profit to Rs23.63 billion for nine months period ended September 30, 2022 as compared with Rs26.98 billion in the same period of the last year.

Earnings per share (EPS) fell to Rs15.95 for the period as compared with Rs18.21 in the same period of the last year, according to consolidated financial accounts submitted to Pakistan Stock Exchange (PSX).

Board of Directors of Habib Bank Limited met on October 26, 2022 to approve the financial results for nine months and third quarter ended September 30, 2022. The board recommended an interim cash dividend for the third quarter ended September 30, 2022 at Rs1.50 per share i.e. 15 per cent. This is in addition to the interim cash dividend already paid at Rs3.75 per share i.e. 37.5 per cent.

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The decline in net profit of the bank may be attributed to massive increase in tax payment during the period. HBL paid an amount Rs31.97 billion as income tax during January – September 2022 as compared with Rs19.39 billion in the corresponding period of the last year.

Net mark-up / interest income of the bank grew to Rs116.04 billion in nine months period ended September 30, 2022 when compared with Rs97.15 billion in the same period of the last year.

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The bank booked huge earnings from foreign exchange income. The foreign exchange income of the bank sharply increased to Rs12.72 billion during January – September 2022 as compared with Rs2.91 billion in the same period of the last year.

However, the bank incurred massive loss from derivatives which recorded at Rs3.41 billion during the period under review as compared with Rs77 million in the same period of the last year.

Total income of the bank increased to Rs151.64 billion for nine months ended September 30, 2022 when compared with Rs122.87 billion in the same period of the last year.

Operating expenses of HBL rose to Rs90.93 billion during first nine months of the year 2022 when compared with Rs70.01 billion in the same period of the last year.

The bank declared profit before tax at Rs59.19 billion for nine months period ended September 30, 2022 when compared with Rs51.87 billion in the corresponding period of the last year.

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