KARACHI: Habib Bank (HBL) earned a profit after tax of Rs21.9 billion for 2013, down by 0.4% from the preceding year, according to a notice sent to the Karachi Stock Exchange on Thursday.
According to BMA Capital, despite a meagre reduction in net profit, HBL’s financial result was higher than its expectation mainly due to lower provisions during the year.
In addition to bonus shares of 10%, the bank’s board of directors also announced a final cash dividend of Rs2 per share, taking the total dividend for 2013 to Rs8 per share.
Net interest income declined by 4.7% on a yearly basis to Rs53.4 billion as a result of lower discount rate in 2013 and changes in the calculation of minimum deposit rate on savings account, said BMA Capital, adding that a notable decline in provisions for non-performing loans also supported the bottom line.
However, the bank’s non-interest income increased 22% year-on-year to Rs15.1 billion because of three reasons: 27% increase in fee and commission income, 68% jump in dividend income and 100% increase in capital gains, according to BMA Capital.
HBL’s deposits increased to Rs1.4 trillion, 15.3% up from Rs1.2 trillion at the end of the preceding year. Advances registered growth of 12.9% to Rs563.7 billion from Rs499.8 billion in 2012. The overall balance sheet size grew by 6.5% to Rs1.7 trillion.