Karachi, July 29, 2022 (PPI-OT): HBL: 1HCY22 Results Corporate Briefing key takeaways

Habib Bank Ltd (HBL) posted an EPS of Rs2.32 (-63%/-60% YoY/QoQ), taking 1HCY22 EPS to Rs8.10 (-33% YoY). The bank also announced second interim DPS of Rs1.50, taking 1HCY22 DPS to Rs3.75.

Lower earnings were reported despite 22% higher total income as the bank witnessed higher taxes over recent budgetary measures. Income before tax increased by 20%/37% YoY/QoQ during the quarter.

Deposits increased by 20% YoY, where current account mix reached to 35%. Higher Advances took ADR up to 44% (Gross ADR: 46%), while IDR slipped to 59%.

The bank’s PIB book consists of floater PIBs (55%) and fixed PIBs (45%), with an average yield of 11%. Around Rs50bn of fixed PIBs matured during Jul-2022. The TBill Investment hold an average yield of 10.75%.

Cash management through digital mode increased by 95% YoY, where transaction value accumulated to Rs3.9trn during the period.

The management is not aware of any investigation regarding the forex market.

With the ongoing monetary tightening, re-pricing impact remains to be completely reflected.

The management apprised that they been reviewing asset quality by executing three rapid portfolio reviews in the last six months and the Steel, Auto, Cement sectors comes among the sectors that will continue to remain monitored.

The management expects monetary tightening to continue in the next Monetary Policy Committee meeting.

The bank’s CAR reached to 14.4%. As the bank isg one of the D-SIBs, it holds a minimum requirement (excluding SBP relaxation of 1%) of 14.5%. The management is of the view to continue to grow and support the clientele in the future.