Karachi, February 19, 2025 – Habib Bank Limited (HBL) has posted financial results for the fourth quarter of CY24, exceeding analysts’ expectations due to higher-than-anticipated net interest income (NII) and other income.
According to analysts at Insight Securities (Pvt) Limited, HBL reported a consolidated profit after tax (PAT) of PKR 14.6 billion (EPS: PKR 9.8) for 4QCY24, compared to PKR 15.9 billion (EPS: PKR 10.1) in the same period last year. Although this reflects a slight decline, the overall performance remained better than projected.
HBL’s Key Financial Highlights for 4QCY24
1. Net Interest Income (NII):
o HBL recorded PKR 60.3 billion in NII, reflecting a 6% year-on-year (YoY) and 5% quarter-on-quarter (QoQ) decline.
o The dip is primarily due to falling asset yields, affecting overall interest margins.
2. Non-Markup Income Growth:
o Non-markup income saw a massive surge of 76% YoY and 69% QoQ, fueled by higher fee income and gains on securities.
o Additionally, HBL posted an impressive PKR 14.5 billion in other income, largely driven by the sale of select branches.
3. Operating Expenses and Efficiency:
o HBL’s operating expenses stood at PKR 54.1 billion, marking a 13% YoY and QoQ increase.
o Despite higher expenses, the cost-to-income ratio remained steady at approximately 56%, demonstrating effective cost management.
4. Credit Loss Allowance & Tax Impact:
o HBL recorded a credit loss allowance of PKR 7.5 billion, a decline from PKR 8.9 billion in 3QCY24.
o The effective tax rate for the quarter was 58%, mainly due to the implementation of higher tax rates on the banking sector.
HBL Announces Cash Dividend for CY24
Alongside its financial results, HBL declared a cash dividend of PKR 4.25 per share, bringing the total CY24 dividend to PKR 16.25 per share.
Despite market challenges, HBL continues to demonstrate resilience, leveraging its diversified revenue streams and strong market presence. Investors and stakeholders will be closely watching HBL’s performance in the upcoming quarters, particularly as economic conditions evolve.
