HBL profit after tax increases by 55 percent

[LahoreEstate]

HBL profit after tax increases by 55 percent
RECORDER REPORT
KARACHI (February 21 2009): The profit after tax of Habib Bank Limited (HBL) has increased by nearly 55 percent to Rs 15.614 billion translating into an earning per share of Rs 20.47 in the year ended December 31, 2008 as compared to PAT of Rs 10.084 billion and EPS of Rs 13.18 earned in the corresponding period in 2007.

The board of directors of the bank in its meeting, held here on Friday recommended final cash dividend of Rs 5.50 per share ie 55 percent and bonus shares in proportion of 20 shares for every 100 shares held ie 20 percent based on the results of the year.

The bank's financial results showed a strong growth, in all areas. Deposit growth for the year has been 12.5 percent and the net asset growth of the bank has been 19 percent over 2007. HBL's consolidated Pre-tax profit for the year was recorded at Rs 22.03 billion. "As per the circular of the SBP (BSD 4 of 2009), wherein the regulators have encouraged banks to record full impairment, the bank has complied and in this regard 100% of impairment loss to the investments held by the bank have been routed through the profit and loss account", HBL in a statement said.

The Chairman of HBL, Sultan Ali Allana presided over the board meeting and said that the bank's performance, despite the difficult conditions, both globally and in Pakistan, is very encouraging. The bank will continue to focus and invest in technology, branch upgrades and human resources in order to deliver a higher standard of services to its customers, he added.

According to the financial results, the bank's mark-up/return/interest income increased to Rs 63.305 billion in 2008 against Rs 50.481 billion in 2007, while the non-mark-up/return/interest income surged to Rs 16.378 billion against Rs 10.023 billion.

The bank's mark-up/return/interest expenses increased to Rs 26.525 billion against Rs 19.153 billion, provisions and write offs surged to Rs 9.387 billion against Rs 7.823 billion while the operating expenditure increased to Rs 21.736 billion against Rs 18.382 billion.

Return on assets (RoA) increased from 1.46 percent in 2007 to 2.06 percent in 2008, return on equity (RoE) improved from 18.64 percent to 21.34 percent and capital adequacy ratio went up to 13.64 percent from 12.5 percent.

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