IGI Securities Limited - Flash Note (August 19, 2022)

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IGI Securities Limited – Flash Note (August 19, 2022)

August 20, 2022

Karachi, August 19, 2022 (PPI-OT): Commercial Banks – Habib Metropolitan Bank

Earnings: Habib Metropolitan Bank (HMB) announced its financial result for the 2QCY22. As per the financial result, the bank reported earnings of PKR 3bn (PKR 2.8/share) that is almost relatively unchanged when compared to last year of PKR 3bn (PKR 2.9/share), a fall of 1%yoy only. Despite solid revenues, PAT was dragged down due to high tax charge and operating expenses.

Dividends/Payouts: The bank announced half-year ended June 30, 2022 interim cash dividend of PKR 2/share.

Operating performance: During the period under review, the bank reported net-interest income of PKR 8.4bn (up by 19%yoy) and non-interest income of PKR 3.8bn (up by 39%yoy). As a result total revenue of the bank stood at PKR 12.1bn (up by 25%yoy). Moreover, the bank recorded operating expenses of PKR 5.3bn (up by 32%yoy) that degraded bank’s cost/income ratio to 43.8% (last year: 41.4%). The bank booked a provision charge of PKR 0.7bn.