F.P. Report
KRACHI: The Board of Directors of Bank AL Habib Limited (the Bank) announced the financial results for the year ended December 31, 2018. As per the results, the Bank declared the pre-tax profit of Rs. 14.26 billion for the year ended December 31, 2018 as compared to Rs. 13.89 billion for the corresponding period. Profit after tax for the year ended December 31, 2018 was recorded at Rs. 8.42 billion against Rs. 8.50 billion for the corresponding period last year. Earnings per Share (EPS) of the Bank were recorded at Rs. 7.57 per share.
The Bank’s total assets increased by 11.03 percent reaching the mark of Rs. 1 trillion during the year ended 31 December 2018, mainly due to expansion in Bank’s loan book by Rs. 138.38 billion, standing at Rs. 478.21 billion as on December 31, 2018, showing outstanding growth of 40.72 percent in net advances as compared to same period last year. Thus improving Advances to Deposits Ratio (ADR) of the Bank, which now stands at 60.01 percent, highlighting an increased level of satisfaction among the debtors due to excellent customer services. The Bank has performed well in trade related services, Fee and commission income of the bank increased by 30 percent as compared to same period last year.
Prudent financing strategies and sound risk management policies of the Bank resulted in decrease in non-performing to gross advances ratio to 1.08 percent as at December 31, 2018 as against 1.52 percent as on December 31, 2017. Coverage ratio of Non-Performing Loans has increased to 147.65 percent as at December 31, 2018 from 144.32 percent in December 31, 2017.
Deposits of the Bank grew by 15.06 percent during the year as compared to December 31,2017 reaching Rs. 796.90 billion as on December 31, 2018. While CASA mix of the Bank stood around 69 percent of the total deposits.
Pakistan Credit rating Agency (PACRA) has maintained Bank’s long term and short term entity ratings at AA+( Double A plus) and A1+ (A one plus), respectively. The ratings of our unsecured, subordinated Term Finance Certificates (TFCs) are AA (Double A) for TFC-2016 and TFC-2018, and AA- (Double A minus) for TFC-2017 (perpetual).
These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.
The Bank continued with its strategy for outreach expansion adding significant branches every year. The Bank’s branch network with in Pakistan has now reached 718 branches / sub branches having coverage in 267 cities plus 3 branches (one each in Bahrain, Malaysia, Seychelles) and 4 representative offices (one each in Dubai, Istanbul, Beijing, Nairobi) outside Pakistan. In line with the Bank’s vision to provide convenience to customers, the Bank is operating with the network of 837 ATMs across Pakistan including 126 offsite ATMs.
During the year, the Bank has received “Best Bank of the Year 2017 (Mid Sized Bank)” award by Chartered Financial Analyst (CFA) Society Pakistan. This award recognizes the outstanding performance of any financial institution.
This is the sixth time that the Bank has received this award from CFA Society Pakistan.
