Habib Metropolitan Bank Limited (HMB) has unveiled its financial performance for the first nine months of the 2023 calendar year (9MCY23).The bank reported a substantial profit of Rs19.76 billion, with earnings per share (EPS) standing at Rs18.43. This represents an impressive 82.72% increase compared to the previous year when the bank recorded a profit of Rs10.81 billion and an EPS of Rs9.88 during the same period in 2022 (SPLY).
Examining the income statement, the bank’s net interest income (NII) witnessed a remarkable surge of 86.74%, reaching Rs52.65 billion, compared to Rs28.19 billion in SPLY. This notable increase in NII can be attributed to a boost in interest earnings, which amounted to Rs150.84 billion, marking a significant YoY increase of 62.11%.
Throughout the reviewed period, the bank’s total non-markup income increased slightly by 0.89% YoY, reaching Rs10.97 billion. This growth was influenced by a rise in Foreign Exchange Income, which reached Rs7.09 billion, reflecting a substantial 16.19% YoY increase.
Within the category of non-markup income, Habib Metropolitan Bank experienced a loss of Rs102.23 million from securities in 9MCY23, in contrast to a gain of Rs277.91 million in 9MCY22.
Additionally, the bank incurred a provision expense of Rs4.47 billion during the review period, compared to an expense of Rs2.46 billion in the corresponding period last year.
On the expenditure side, the bank’s non-markup expenses increased by 35.38% to Rs22.32 billion in 9MCY23, up from Rs16.49 billion in 9MCY22. This increase was primarily driven by a 34.23% YoY rise in operating expenses, which escalated from Rs16 billion in 9MCY22 to Rs21.49 billion in 9MCY23.
Similarly, expenses related to the Workers’ Welfare Fund also saw an increase during the review period, with the bank paying Rs18.07 billion in taxes, which is a substantial 94.06% higher than the amount paid in 9MCY22.
