Bank Al-Habib Limited has recorded a stellar financial performance as shown by the tremendous profitability which grew by 39 percent in the first quarter of 2020 compared with the similar period of last year.
Net Interest Income (NII) during the quarter improved, both as compared to the same period last year and as compared to Dec’19 quarter by 14% YoY and 0.8% QoQ respectively.
Non-Interest Income, on the other hand, remained dull having deteriorated by 26% on a QoQ basis. Weak Non-Interest Income kept overall revenue growth subdued.
The decline in Non-Interest Income, especially fee income (down 13% QoQ), is indicative of the effects of lockdown which started from mid-Mar’20.
The bank did not announce any payout with the result. Historically, BAHL has only announced dividends with its full year results. That said, we don’t see any dent to market’s dividend expectations after directives issued by SBP yesterday which stopped banks to announce cash dividend payouts for the next two quarters.
Earning per share of the bank stands at Rs. 2.56 as compared with Rs. 1.85 last year.