AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 129.06 Decreased By ▼ -0.47 (-0.36%)
BOP 6.75 Increased By ▲ 0.07 (1.05%)
CNERGY 4.49 Decreased By ▼ -0.14 (-3.02%)
DCL 8.55 Decreased By ▼ -0.39 (-4.36%)
DFML 40.82 Decreased By ▼ -0.87 (-2.09%)
DGKC 80.96 Decreased By ▼ -2.81 (-3.35%)
FCCL 32.77 No Change ▼ 0.00 (0%)
FFBL 74.43 Decreased By ▼ -1.04 (-1.38%)
FFL 11.74 Increased By ▲ 0.27 (2.35%)
HUBC 109.58 Decreased By ▼ -0.97 (-0.88%)
HUMNL 13.75 Decreased By ▼ -0.81 (-5.56%)
KEL 5.31 Decreased By ▼ -0.08 (-1.48%)
KOSM 7.72 Decreased By ▼ -0.68 (-8.1%)
MLCF 38.60 Decreased By ▼ -1.19 (-2.99%)
NBP 63.51 Increased By ▲ 3.22 (5.34%)
OGDC 194.69 Decreased By ▼ -4.97 (-2.49%)
PAEL 25.71 Decreased By ▼ -0.94 (-3.53%)
PIBTL 7.39 Decreased By ▼ -0.27 (-3.52%)
PPL 155.45 Decreased By ▼ -2.47 (-1.56%)
PRL 25.79 Decreased By ▼ -0.94 (-3.52%)
PTC 17.50 Decreased By ▼ -0.96 (-5.2%)
SEARL 78.65 Decreased By ▼ -3.79 (-4.6%)
TELE 7.86 Decreased By ▼ -0.45 (-5.42%)
TOMCL 33.73 Decreased By ▼ -0.78 (-2.26%)
TPLP 8.40 Decreased By ▼ -0.66 (-7.28%)
TREET 16.27 Decreased By ▼ -1.20 (-6.87%)
TRG 58.22 Decreased By ▼ -3.10 (-5.06%)
UNITY 27.49 Increased By ▲ 0.06 (0.22%)
WTL 1.39 Increased By ▲ 0.01 (0.72%)
BR100 10,445 Increased By 38.5 (0.37%)
BR30 31,189 Decreased By -523.9 (-1.65%)
KSE100 97,798 Increased By 469.8 (0.48%)
KSE30 30,481 Increased By 288.3 (0.95%)

Bank AL Habib Limited (BAHL) marked another year of steady progress on all fronts. The Bank’s after-tax profits went up by 5 percent year-on-year, as gains were made on non-markup income and provisioning fronts, in addition to continued expansion of the balance sheet. The year end financial result was accompanied with 70 percent final cash dividend – the highest in the bank’s history.

The markup earned went down year-on-year, primarily due to significant reduction in average yields on earning assets. Volumetric growth was evident as the asset base expanded by 21 percent to Rs1.85 trillion over December 2020. Unlike the industry trend, BAHL’s asset base expansion is not entirely built on investment portfolio. The investment portfolio grew by 8 percent over December 2020 to Rs827 billion.

BAHL made big strides in 2021 on account of growth in advances portfolio. The earning asset growth was built largely around growth in advances, which grew to over Rs733 billion, registering an increase of 44 percent over December 2020. BAHL has a reputable name in trade financing, and from the looks of it, the bank cashed in on the trade growth spurt during 2021. The gross advances to deposit ratio improved from 46 percent last year to over 57 percent.

The loan quality continues to remain exemplary, as the NPL ratio fell further to 1.04 percent, with a high coverage ratio of 169 percent, indicating the prudent approach adopted by the Bank. On the liabilities front, the growth was higher than the industry average at 19 percent over December 2020 at Rs1.31 trillion.

Non-funded income provided an able hand to the income growth, headlined by a sizeable growth in fee and commission income, as business activities picked up considerably during the year versus 2020. There were gains to be had on foreign exchange income as well, taking the overall non-funded income growth to 37 percent year-on-year. The administrative expense growth was slightly on the higher side, leading to higher cost-to-income ratio for 2021. The biggest difference to the bottomline was made by considerable reversal in provision expenses, which accounted for an impact of more than Rs4.5 billion.

Comments

Comments are closed.