KARACHI: The Board of Directors of Bank AL Habib Limited has announced the Bank’s financial results for the period ended 31 March 2021.
The Bank posted a profit after taxation of Rs. 4.60 billion i.e. an increase of 60.90 percent compared to the corresponding period last year.
The Bank’s profit before tax was recorded at Rs.7.06 billion, showing a growth of 47.36 percent as compared to the corresponding period last year, driven by markup income as well as fees and commission income translating into an EPS of Rs. 4.14 per share as against Rs. 2.57 per share for the corresponding period last year.
The total markup income increased by 16.56 percent as compared to the corresponding period last year bringing it to Rs. 13.11 billion reflecting the Bank’s success in maintaining sustainable growth.
In spite of the challenging conditions and free online offerings during the COVID-19 plague, the Bank managed to increase its fee and commission income by 38.23 percent as compared to the first quarter of 2020. Total Assets reached Rs. 1.61 trillion, an increase of 5.65 percent as compared to 31 December 2020.
Net loans and advances grew by 4.54 percent to reach Rs. 533.43 billion whilst the investments increased by 10.38 percent to reach Rs. 844.31 billion, leading to overall growth in the total assets.
Due to the Bank’s sound risk management practices and prudent financing strategy, the NPL ratio was recorded at 1.24 percent. The Bank achieved a coverage ratio of 182.87 percent which reflects the prudent approach adopted towards non-performing loans. Deposits of the Bank increased 6.16 percent bringing the total deposits to Rs. 1.17 trillion as of March 31, 2021.
The Bank’s Capital Adequacy Ratio (CAR) recorded at 14.10 percent as of March 31, 2021, against the regulatory capital requirement of 11.50 percent (including capital conversion buffer of 1.50 percent as reduced under the BPRD circular letter no. 12 of 2020). The gross Advances to deposit ratio stood at 46.75 percent.
The Bank continued with its strategy for outreach expansion, adding a significant number of branches every year. The Bank’s branch network has now reached 912 branches/sub-branches and two booths having coverage in 366 cities in Pakistan.
In addition to 3 foreign branches (one each in Bahrain, Malaysia, Seychelles) and 4 representative offices (one each in Dubai, Istanbul, Beijing, Nairobi) outside Pakistan. In line with the Bank’s vision to provide convenience to customers, the Bank is operating a network of over 1,071 ATMs across Pakistan.
Pakistan Credit rating Agency (PACRA) has maintained the Bank’s long-term and short-term entity ratings at AA+( Double-A plus) and A1+ (One plus), respectively. The ratings of our unsecured, subordinated Term Finance Certificates (TFCs) are AA (Double-A) for TFC-2018, and AA- (Double-A minus) for TFC- 2017 (perpetual). These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.
