Karachi, February 23, 2024 – In a remarkable financial performance, Habib Bank Limited (HBL) has reported an impressive 84 percent growth in its annual profit for the calendar year 2023.
The unconsolidated financial results submitted to the Pakistan Stock Exchange (PSX) on Friday revealed a substantial increase in the bank’s profit after tax, marking a significant milestone in its financial achievements.
HBL recorded an after-tax profit of Rs 57 billion for the year ended December 31, 2023, compared to Rs 31 billion in the preceding year. This exceptional growth translated into an earnings per share (EPS) of Rs 38.76 for the year, a substantial increase from Rs 21.04 in the previous year.
The board of directors of HBL convened on Friday, February 23, 2024, and proposed a final cash dividend for the year ended December 31, 2023, at Rs 4 per share. This is in addition to the interim cash dividend already paid at Rs 5.75 per share, showcasing the bank’s commitment to rewarding its shareholders for their trust and support.
According to the financial statement, HBL’s net interest income experienced a significant surge, reaching Rs 223.39 billion for the year ended December 31, 2023, compared to Rs 152.14 billion in the preceding year. The bank’s fee and commission income also witnessed substantial growth, rising to Rs 37.31 billion annually from the previous year’s Rs 27.65 billion.
However, the bank faced challenges in the form of an exchange loss amounting to Rs 743 million in calendar year 2023, in contrast to an exchange gain of Rs 2.45 billion in the preceding year. Despite this setback, the total income of the bank reached Rs 277.30 billion for the year ended December 31, 2023, compared to Rs 190.40 billion in the preceding year.
Operating expenses of the bank saw an increase, rising to Rs 152 billion for the year ended December 31, 2023, compared to Rs 110.50 billion in the preceding calendar year. Similarly, the net provision and write-offs of the bank also increased to Rs 10.63 billion for the year under review, compared to the previous year’s Rs 6.45 billion.
HBL’s remarkable financial performance reflects its resilience and adaptability in a dynamic economic environment. The substantial growth in profits, coupled with prudent financial management, positions the bank as a key player in the country’s banking sector. The proposed dividends further reinforce HBL’s commitment to creating value for its shareholders while navigating the challenges presented by the market.
As the bank continues to evolve and respond to market dynamics, stakeholders and investors will be closely watching HBL’s strategic moves and financial initiatives, anticipating sustained growth and stability in the years ahead. The outstanding financial results underscore HBL’s pivotal role in contributing to the economic landscape of Pakistan.
