Bank AL Habib Limited announces 115pc profit growth

Bank AL Habib Limited (BAHL) on Wednesday reported a 115 percent surge in its annual profit for 2023, driven by higher interest income and fee income.

The bank earned Rs35.93 billion in the year ended Dec. 31, 2023, up from Rs16.69 billion a year earlier, according to a filing to the Pakistan Stock Exchange (PSX).

Earnings per share (EPS) rose to 32.33 rupees from 15.01 rupees in 2022.

The bank’s board of directors recommended a final cash dividend of Rs5 per share, or 50 percent, bringing the total dividend for the year to Rs14 per share, or 950 percent.

The bank’s net interest income, the difference between interest earned and interest paid, jumped 60.6 percent to Rs124.14 billion, as its interest-earning assets grew 86.1 percent to Rs373.89 billion.

The bank’s non-markup income, which includes fee income, foreign exchange income and share of profit from associates, increased 12.9 percent to Rs24.35 billion.

The bank’s share of profit from associates, mainly from its stakes in Habib Bank AG Zurich and Habib Metropolitan Bank, rose 45.6 percent to Rs1.13 billion.

The bank’s foreign exchange income, however, declined 5.5 percent to Rs6.84 billion, due to lower volatility in the currency market and reduced margins.

The bank’s total expenses increased 36.5 percent to Rs72.31 billion, mainly due to higher operating costs, which rose 35.7 percent to Rs70.53 billion. The bank’s provision for bad loans decreased 18.4 percent to Rs1.78 billion.