HBL declares profit of Rs34.2b

HBL today declared a consolidated profit after tax of Rs34.2 billion for the full year 2016, with earnings per share ofRs23.23. Along with the results, the Bank declared a final dividend of Rs3.50 per share (35per cent), bringing the total dividend for the year to Rs14 per share.

HBL’s balance sheet has grown by 13per cent over December 2015to reach Rs2.5 trillion. Overall, the Bank added Rs250 billion in deposits, while maintaining its CASA ratio. Current accounts increased by more than 16per cent, reaching nearly Rs700 billion with the current account mix improving to 37per cent of total deposits. In 2016, HBL grew its average domestic current accounts by 19per cent over 2015, enabling the Bank to reduce its cost of deposits. With the improved economic climate, lending growth has accelerated with loans growing by over 17per cent, driven by increases in Corporate lending, but with strong support from the SME and Consumer segments. The Bank was thus able to grow net interest income by 5per cent to Rs82.0 billion for 2016.

Fees and Commissions rose by 8per cent to Rs18.7 billion with new records being set in Bancassurance, investment banking and consumer finance. Trade, remittances and general banking related fees continued to make significant contributions to fee income. HBL’s prudent lending and active recovery efforts have resulted in a decade low provision charge of less than Rs1 billion, an 81per cent reduction over 2015. Simultaneously, the Bank was able to improve its asset quality as the infection ratio fell to single digits, its lowest level in the last 8 years. HBL’s reach now includes 2,000 ATMs and nearly 15,000 POS machines to provide access and convenience to its customers across Pakistan.

The consolidated Capital Adequacy Ratio (CAR) at the end of 2016 was 15.5per cent, with the Tier 1 CAR at12.0per cent, both well above regulatory requirements. The Bank’s local credit ratings remain in the highest possible AAA/A-1+ categories for long term and short term respectively, while international rating agencies have also reaffirmed HBL’s rating. These are reflective of the Bank’s healthy capitalization ratios, sound liquidity profile and its systemic importance. During the year, HBL continued to receive accolades including Bank of the Year in Pakistan, by The Banker, UK, the Best Domestic Bank in Pakistan by Asia money and the Safest Bank in Pakistan, by Global Finance.

Publishedin Pakistan Observer, February 15th, 2017.