F.P. Report
KARACHI: The Board of Directors of Bank AL Habib Limited (the Bank) announced the financial results for the period ended March 31, 2019. As per the results, the Bank declared the profit before tax of Rs. 4.44 billion for the quarter ended March 31, 2019 as compared to Rs. 3.41 billion for the corresponding period, showing a substantial growth of 30.51 percent.
Well utilized and efficient deployment of funds by the Bank lead to remarkable growth in operating profits. Profit before provisions of the Bank grew by 66.15 percent. The bank improved 40.13 percent in its net interest margins as compared to corresponding period last year. Bank’s non-markup income grew by 26.97 percent during March 2019 quarter as against March 2018 quarter. Fee, Commission income which is earned mainly through trade business, alternate delivery channels, general banking services etc. showed exceptional increase of 34.15 percent during March 2019 quarter against corresponding period last year.
Prudent financing strategies and sound risk management policies of the Bank kept the non performing advances to gross advances ratio at 1.1 percent. The Bank has performed well in expanding revenue streams and decreased its cost-to-income ratio to 54.96 percent as compared to 62.62 percent in corresponding period last year.
Deposits of the Bank increased to Rs. 813.50 billion as on March 31, 2019 as compared to Rs. 796.90 billion as on December 31, 2018, the growth of which is higher than the domestic market growth. Gross advances of the Bank as on March 31, 2019 were Rs. 468.72 billion.
The Bank continued with its strategy for outreach expansion adding significant branches every year. The Bank’s branch network within Pakistan has now reached 726 branches / sub branches having coverage in 272 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 854 ATMs across Pakistan.
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 has received certificate of appreciation from the Prime Minister of Pakistan in recognition of being amongst top 50 corporate taxpayers in the tax year 2018 and for contribution to the national exchequer and its commitment to national cause.
