Headline:
HBL Reports Robust Growth in Q1’24, Declares Rs. 4 Cash Dividend per Share
Subhead:
Consolidated Profit Before Tax Surges 40%, Earnings Per Share Reach Rs. 10.37
Body:
In an announcement today, Habib Bank Limited (HBL) disclosed its impressive financial performance for the first quarter ended March 31, 2024. The bank’s consolidated profit before tax marked a notable surge, reaching Rs. 30.1 billion, representing a substantial 40 percent increase compared to the corresponding period last year. Moreover, profit after tax witnessed a commendable rise from Rs. 13.3 billion in Q1’23 to Rs. 15.0 billion in Q1’24.
Accompanying the financial results, HBL declared an interim cash dividend of Rs. 4 per share, translating to 40 percent, for the quarter under review.
The earnings per share (EPS) for Q1’24 stood at Rs. 10.37, showcasing a significant improvement from Rs. 9.00 recorded in Q1’23.
HBL’s balance sheet displayed robust figures, with total deposits closing at Rs. 4.4 trillion and domestic deposits witnessing a substantial growth of over Rs. 220 billion, reaching Rs. 3.7 trillion. Notably, current accounts registered their highest first-quarter growth in the past five years. However, total advances experienced a slight decline of 6 percent over December 2023, standing at Rs. 1.75 trillion, reflecting subdued credit demand. Despite this, the bank’s market-leading Consumer business continued its growth momentum, reaching Rs. 130 billion in March 2024.
The bank’s revenue streams demonstrated resilience and growth, with net interest income increasing by 6 percent and total revenue surging by 25 percent to Rs. 80.7 billion. HBL attributed this growth to strong performance in fees, which witnessed a remarkable 27 percent increase, totaling Rs. 11.9 billion in Q1’24. The Cards business notably contributed 35 percent to this fee growth, while trade and branch banking also recorded substantial double-digit fee growth.
Furthermore, despite challenges posed by high inflation, HBL managed to reduce its cost-to-income ratio from 60.8 percent in Q1’23 to 57.2 percent in Q1’24.
Commenting on the bank’s performance, Muhammad Nassir Salim, President & CEO of HBL, emphasized the institution’s commitment to client-centricity and highlighted its achievements in various segments including SME, agriculture, and digital banking. Salim outlined the bank’s future focus on operationalizing its strategic approach, ensuring distinct management of each client segment with defined propositions, channels, and products.
HBL’s mobile and internet banking witnessed a substantial year-on-year growth of 36 percent in financial transactions and service requests, processing Rs. 1.64 trillion in Q1’24. Additionally, HBL’s branchless banking platform, Konnect, launched a USD debit card linked to the Exporter’s Special Foreign Currency Account (ESFCA), catering to freelancers and IT exporters.
The bank’s momentum extended into various business sectors, including POS merchant acquiring, agriculture services, SME financing, and Islamic banking, reflecting its diversified growth strategy and commitment to innovation.
In conclusion, HBL’s strong financial performance in Q1’24 reflects its resilience, strategic focus, and commitment to meeting the evolving needs of its customers across diverse segments and industries.
