HBL announced today a combined profit before tax of Rs 55.6 billion for the first nine months of 2022, representing a 20% increase over the same period last year.
In addition to the earnings, the bank declared an interim dividend of Rs 1.50 per share (15%), bringing the total payout for 9M’22 to Rs 5.25 per share.
However, profit after tax fell by 12% to Rs 23.6 billion as a result of higher, excessive, and retrospectively applied taxation introduced in the Federal Budget, which reduced EPS by Rs 6.42/share.
Thus, the bank’s earnings per share of Rs 15.95 are lower than the EPS of Rs 18.21 recorded during the same period last year.
The balance sheet of HBL increased by 5% to Rs 4.5 trillion, with total deposits of Rs 3.4 trillion. Total advances increased by 14% to Rs 1.7 trillion.
The Bank’s leading consumer portfolio of Rs 120 billion is 17% higher than in December 2021, and lending to agriculture reached an all-time high of Rs 45 billion, representing a 14% increase.
HBL’s commercial lending portfolio also surpassed the Rs 100 billion mark. HBL Microfinance increased loans by 36%, demonstrating the bank’s progress toward its financial inclusion goals.
9M’22 performance of the bank
Muhammad Aurangzeb, President & CEO – HBL, commented on the bank’s 9M’22 performance.
“HBL demonstrated its continued and stated commitment to support its clients and keep lending to the real economy, so important in these difficult times, compounded by the devastating floods. The bank continues to invest in its people, digital infrastructure, and business expansion, aligned with the key pillars of the bank’s strategic vision. In consideration of the pressure on employees by the high level of inflation, escalating fuel prices and excessive taxation, particularly at the junior level, HBL provided support through a cost-of-living adjustment. In 9M’22, HBL also took the landmark step of raising the staff service age to 65, another first in the industry, which has been applauded by all stakeholders.”
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