KARACHI: Habib Metropolitan Bank Limited (PSX: HMB) has announced its financial results for the current period, posting a profit after taxation of Rs6.24 billion, reflecting a nearly 2% increase compared to Rs6.12 billion in the same period last year.
The bank’s Board of Directors has declared an interim cash dividend of Rs2.5 per share, equivalent to 25%.
Habib Metropolitan’s basic and diluted Earnings Per Share (EPS) rose to Rs5.8 from Rs5.68, marking a 2.11% growth year-on-year. Meanwhile, profit before taxation increased by approximately 11.5% to Rs13.26 billion, up from Rs11.9 billion in the corresponding period last year.
Total income during the period surged by 14.52% to Rs23.53 billion, largely driven by strong growth in non-mark-up/interest income. Non-mark-up/interest income jumped by nearly 46% to Rs5.45 billion, compared to Rs3.74 billion previously. Key contributors to this growth included a 55.25% increase in foreign exchange income, a 15.16% rise in fee and commission income, and almost 30% higher dividend income.
Net mark-up/interest income also witnessed growth, rising 7.6% to Rs18.08 billion, despite a 28.78% decline in mark-up/return/interest earned, which fell to Rs42.78 billion. This was offset by a significant 42.9% decrease in mark-up/return/interest expenses, which dropped to Rs24.7 billion.
Operating expenses rose by 25.1% to Rs9.3 billion, while total non-mark-up/interest expenses climbed 23.67% to Rs9.58 billion. The bank also allocated Rs267.5 million to the Workers’ Welfare Fund, marking a 9.4% increase from the previous period.
Credit loss allowance and write-offs improved, declining by 23.9% to Rs678 million from Rs892 million, indicating better credit quality. However, the bank’s taxation expense rose by 21.5% to Rs7.02 billion, compared to Rs5.78 billion in the same period last year.
