Karachi, February 23, 2022 (PPI-OT): HMB: CY21 Result Review – in line with expectations

Habib Metropolitan Bank Limited (HMB) announced its CY21 results where the bank reported earnings of PkR13.9bn (EPS: PkR12.9) compared to PkR12.3bn (EPS: PkR11.5) in the same period last year. The result came in line with our expectations.

Together with the result, the bank announced a dividend of PkR3.0/sh, taking cumulative payout for the year to PkR5.0/sh.

For 4QCY21, earnings of the bank stood at PkR3.4/sh, down 3.0/4.2% QoQ/YoY where downtick in earnings on a sequential basis is attributable to higher administrative costs usually associated with the last quarter.

Net interest income of the bank has remained stable in the foregoing quarter as contraction in yield (Gross yield for 4QCY21 stood at 39.1% vs. 40.5% in the previous quarter) was potentially offset by balance sheet volumetric growth.

On announcement of the financial results, the stock is +2.05% as of this writing where our Dec’22TP stands at PkR49.6/sh.