Habib Metropolitan Bank (HMB) has declared a net profit after tax of Rs6.45 billion – an increase of 50% from the last time. This translates into earning per share (EPS) of Rs5.98.

Last year, the bank recorded profit of Rs4.29 bn.

In addition to this, the board of directors has announced an interim cash dividend for the half-year ended June 30, 2021 at Rs2 per share i.e., 20%.

The main reason behind this profitability was the net interest income (NII).

During the period under review, the bank’s interest income came down by 13% YoY while interest expenses decreased by roughly 30.4% YoY. As a result, HMB’s net interest income (NII) surged by 34% YoY to Rs14.73bn during 1HCY21.

On the other hand, non-funded income (NFI) of the bank edged higher by 2.6% YoY to clock in at Rs4.9bn due to a 34.3% increase in fee and commission income, around an eight-fold increase in other income. However, foreign exchange income went down by 37% YoY to Rs1.26bn coupled with a 70% YoY decline in capital gains.

Moreover, operating expenses went up by 11% YoY to stand at Rs7.71bn whereas the bank witnessed Rs1.80bn provisions that restricted its bottom-line. Nevertheless, the effective tax rate improved to 35% as compared to 39% in 1HCY20.

The story was filed by the News Desk.
The Desk can be reached at info@thecorrespondent.com.pk.

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