ISLAMABAD: HBL announced a consolidated profit before tax (PBT) of Rs51.5 billion for the first half of 2023 (January-June), representing a nearly 50% increase compared to the same period of the previous year.
HBL recorded its highest-ever Profit Before Tax (PBT) of Rs30 billion for the second quarter of 2023 (April-June), driven by the exceptional performance of its core business lines.
HBL’s impressive results include an interim dividend of Rs2.00 per share (20%), totaling Rs 3.50 per share for H1’23.
The remarkable performance is credited to a 63% growth in profits from its domestic franchise, while the international business also contributed positively to the bank’s bottom line, according to HBL’s press release.
HBL‘s profit-after-tax doubled to Rs26.3 billion despite excessive and unfair taxation in the Federal Budget. Earnings per share for the half-year were Rs17.86, a significant increase from Rs 8.10 for H1’22.
The bank’s balance sheet grew by 7% to Rs4.9 trillion, driven by a Rs224 billion growth in deposits, with domestic deposits surpassing Rs 3 trillion.
Average domestic deposits increased by more than Rs300 billion, with 90% of the growth from cheaper deposits. Advances declined due to reduced private sector demand, except for microfinance loans, which increased by 7%.
In the rising interest rate environment, HBL’s net interest margins widened by 192 bps, resulting in a 53% increase in net interest income. Total interest income rose to Rs114 billion, with a strong contribution from international markets.
The bank’s fee franchise showed excellent results, with fees growing by 31% to nearly Rs20 billion. Despite inflation and a weaker rupee impacting the cost base, proactive cost management efforts contained expense growth to 2.5% over the previous quarter, improving the cost/income ratio.
The net infection ratio of 0.8% remains below industry levels, and prudent provisioning has kept coverage in excess of 100%.
HBL’s President & CEO, Muhammad Aurangzeb, emphasized that the bank’s H1’23 results were a result of strong organic growth and exceptional performance in all business segments, solidifying their leadership position.
He emphasized their commitment to investing in digital capabilities and providing the best banking experience. Asiamoney’s recognition as the ‘Best Bank for Digital Solutions Pakistan’ reflects the trust and confidence millions of clients have in HBL.
The bank remains dedicated to supporting customers during challenging times, focusing on sustainability and community welfare.
