HBL Profits Drop by 48% in First Quarter of 2018 – Research Snipers

HBL Profits Drop by 48% in First Quarter of 2018

The profits of Habib Bank Limited (HBL), one of the leading banks of Pakistan have dropped by 48% in Q1 2018. In comparison to the same period the previous year, this year in the first quadrant of 2018 the profits have gone down drastically.

Last year during the period of January to March 2017, HBL recorded profit of Rs. 9.07 billion. This year during the same period, HBL recorded profit of Rs. 4.68 billion.

The bank revenues from non-interest resources last year during the same period were Rs. 8.31 billion. The bank revenues non-interest based this year, in the same period have been decreased to Rs.5.16 billion.

Interest-Based revenue increased this year in Q1 from Rs. 19.8 billion to 20.1 billion.

As the New York branch of HBL closed, it affected the bank negatively. It had to pay hefty penalty & it affected the balance sheet.

Per-share earning of HBL in Q1 2018 is Rs 3.12. Before tax, the profit for Q1 2018 was Rs 7.4 billion. Capital Adequacy Ratio (CAR) by March 31st, 2018 went up by 16.5% with Tier 1 CAR at 12.3%.

The main domestic business of HBL remained steady. The overall domestic deposits went up by 3% reaching Rs. 1.8 trillion. The market share increased to 14.4%. Most of the development was seen in CASA deposits. The CASA ratio raised to 86.5% in Q1 2018.  The domestic loan book went up by Rs 26 billion.

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Domestic loans on average increased by 29% and average domestic current accounts grew by Rs 86 billion compared to Q1 last year.

The customer base of HBL increased with 300,000 customers & an expansion was seen in HBL ATMs & POS terminals. There are more than 1700 branches of HBL, 2044 ATMs & around 18600 POS all over Pakistan.