Karachi, February 24, 2023 (PPI-OT): Commercial Banks – Habib Bank Limited

Earnings: Habib Bank Limited (HBL) announced its annual result for the year 2022, whereby the Bank reported consolidated earnings of PKR 34.4bn (PKR 23.2/share) during CY22 compared to PKR 35.5bn (PKR 24.2/share) last year, a decrease of 3%y/y.

Dividend/Payout: The bank announced a final cash dividend of PKR 1.5/share along with the result. This brings total cash dividend to PKR 6.75/share for CY22.

Operating Performance: During the period under review, the Bank reported net-interest income of PKR 165.6bn (up by +26%y/y) and non-interest income of PKR 46.7bn (up by +29%y/y). As a result, total revenue of the bank stood at PKR 212.3bn (up by +27%y/y). Moreover, HBL recorded operating expenses of PKR 126.8bn (up by +30%y/y) that deteriorated bank’s cost/income ratio to 60% (last year: 58%). The bank booked provision charge of PKR 8.5bn during CY22 compared to provision charge of PKR 8.1bn last year. Tax charge for the year came at PKR 42.6bn (effective tax rate of 55%) compared to 43% in CY21.