HBL maintains its leadership position posting record profit before and after tax at Rs 36 billion and Rs 23 billion. HBL's deposits increased by 15.3 percent to Rs 1.401 trillion as on December 31, 2013 from Rs 1.215 trillion on December 31, 2012.
The Bank was successful in delivering an impressive improvement in the deposit mix, with Current Accounts showing a growth of 30 percent to Rs 411.5 billion improving CASA ratio to 73 percent as on December 31, 2013 as against 67 percent in the corresponding period last year.
Overall deposit growth remained strong despite a targeted reduction of high cost deposits. Advances at Rs 563.7 billion registered a robust growth of 12.9 percent from Rs 499.8 billion. The overall balance sheet size grew by 6.5 percent to Rs 1.715 trillion. With strong risk management, Net NPLs were reduced to 15.30 billion from 15.88 billion in 2012, registering an improvement in Net NPL ratio to 2.7 percent from 3.2 percent in 2012. The Capital Adequacy Ratio (CAR) under SBP mandated BASEL III approach improved to 15.39 percent as at December 31, 2013, as against a corresponding 15.31 percent as of December 31, 2012.
The strong financial performance by HBL was largely due to a combination of growth in deposits and improvement in deposit mix as well as containing credit provisions and realising strong recoveries. Technological innovation and new initiatives have underpinned the growth in HBL's traditional product offerings including Cash Management, Trade Finance and Remittance. As a result earnings of Rs 19.3 billion on account of Non Fund Income (fees, Commissions and Foreign Exchange) exceeded the previous year by 21 percent.
The Board has recommended a final dividend of Rs 2 per share for the year ended December 31, 2013. The Board had earlier declared and paid interim dividend at Rs 6 per share, making total dividend for the year to Rs 8 per share. In addition to the above, the Board has also decided to issue Bonus Shares at the rate of 10 percent in proportion of 10 shares for every 100 shares held.-PR
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