Karachi, October 15, 2021 (PPI-OT): HBL: 9MCY21 Result Review

Habib Bank Limited (HBL) announced its 9MCY21 results today where the bank reported earnings of PkR27.0bn (EPS: PkR18.2) compared to PkR25.2bn (EPS: PkR17.2) in the same period last year. The result came in line with expectations.

The bank also announced a dividend of PkR1.75/sh, taking cumulative dividends for current financial year to PkR5.25/sh.

For 3QCY21, the bank posted earnings of PkR6.2/sh, down 5.4%QoQ/11.2%YoY where sequential downtick in earnings is attributable to significant decline in capital gains (3QCY21: PkR88mn vs. PkR1.7bn in 2QCY21).

Gross Yield of the bank declined by 2ppt during the quarter to stand at 49.0% which overshadowed potential volumetric growth in earning assets, resulting in Net Interest Income remaining constant on a sequential basis.

Cost to Income ratio of HBL in 3QCY21 stood at 58.1% as against 55.7% in the previous quarter. Effective tax rate stood at 41.0% vs. 43.3% in 2QCY21.