HBL declared a consolidated profit before tax of Rs14.6 billion for the first quarter of 2022 and a profit after tax of Rs8.6 billion, both higher than in the same period last year, it announced on Tuesday.
"The results include a one-time severance charge of Rs2.6 billion," it added. "Excluding the impact of this one-time charge, the Bank’s profit before tax is 18% more than in Q1’21. Along with the results, the Bank declared a dividend of Rs.2.25 per share (22.5%)."
HBL said it continued to build on its growth story, with its fortress balance sheet increasing by another 5% over December 2021 to Rs4.5 trillion.
"Beating historical trends, HBL was able to grow current accounts beyond the previous year-end peak to nearly Rs1.2 trillion, 37.4% of the total deposit base of Rs3.2 trillion.
"Advances grew by 4% in one quarter alone, well ahead of the market, to nearly Rs1.6 trillion, with broad-based growth across all segments.
"The Bank’s flagship Consumer business continued to break records with loans crossing Rs110 billion; agriculture lending achieved a new high of Rs41 billion. HBL Microfinance Bank, the largest microfinance provider of housing loans, posted double-digit growth with deposits crossing Rs100 billion and a loan portfolio of Rs65 billion."
Net interest income of the Bank increased by Rs3.8 billion to Rs36.3 billion in the first three months of 2022, driven by an exceptional growth of over Rs450 billion in average volumes.
"Fee income rose 24% to Rs7.3 billion; the fee engine is firing on all cylinders, with an outstanding performance from the Cards business, and double-digit growth in all key businesses. A spectacular treasury performance resulted in income rising by 42%. Total revenue of the Bank thus increased by Rs6 billion over Q1’21 to Rs46.6 billion."
Administrative expenses (excluding severance charge of Rs2.6 billion) increased to Rs27.8 billion on the back of rising inflationary pressures, higher sales-driven costs and a continued investment in people and technology. Total provisions reduced by 36% to Rs1.2 billion; the infection ratio remains well-controlled at 5.2% with total coverage at over 100%.
"Demonstrating its commitment to giving back to the community, the endowment fund of the HBL Foundation was doubled to Rs100 million, while the annual contribution was raised by 50%, to 1.5% of post-tax profits."
Commenting on the performance, Muhammad Aurangzeb, President & CEO HBL, said, “The Bank’s business volumes have set new benchmarks on the back of a very strong performance across all client segments and activity drivers.
"We continue to work diligently on building technological innovation, working with the Government of Pakistan on public-private partnerships, and most importantly serving our clients with excellence. HBL’s digital channels, being our strategic priority, processed an unprecedented Rs2.8 trillion from 109 million transactions, representing a YoY growth of 64%.”
HBL also said it registered a 58% growth in Credit Card spend over same period last year.
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It added that digital transactions continued exponential growth with HBL’s Mobile Banking and Internet Banking registering a growth of 97% in transaction value, to Rs417 billion in Q1’22.
HBL Mobile app users crossed 2.6 million with a 61% growth in transaction volume to 26 million in Q1’22.