HBL’s 9-Month Profits Surge by 187% YoY to Rs. 25.3 Billion

HBL has declared a consolidated profit after tax of Rs. 25.3 billion for the nine months ended on September 30,020 (9M’20), an almost 187% growth over the same period last year. It had registered a profit of Rs. 8.82 billion in the same period last year.

The bank’s earnings per share increased to Rs. 17.17 compared to Rs. 5.89 in 9M’19. Aided by the strong earnings stream, the bank’s CAR rose by 125 bps in the third quarter to 17.8%.

HBL added more than Rs. 300 billion in domestic deposits during the first nine months of 2020, increasing total domestic deposits to Rs. 2.5 trillion and boosting its market share to 14.4%. HBL’s total deposits reached Rs. 2.7 trillion.

HBL continues to maintain a strong current account and CASA ratios of 34.6% and 81.7% respectively. HBL supported its retail customers’ financing needs through these difficult times, in the process showing a growth of 16% in just one quarter, driven by personal and auto loans.


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HBL recorded a net interest income of nearly Rs. 100 billion driven by a strong 14% growth in its average domestic deposits. Lower footfall and restricted business volumes during the first half of the year due to lockdowns and the economic downturn have resulted in fee income being lower than last year.

However, total non-fund income increased by more than 50% to Rs. 24.1 billion thanks to the realization of capital gains from the proactive build-up of the treasury portfolio over the last year.

Administrative expenses were well controlled and grew by a mere 2% YoY, while the bank continued to invest in its digital initiatives and strengthen compliance and controls. During 9M’20, HBL spent over Rs. 500 million for protective measures for staff and customers across the network and direct contributions to protecting the vulnerable in these very difficult times. Consequently, the cost/income ratio reduced from 76.8% to 57.2% YoY.

Domestic provisions have remained well contained and are nearly 50% lower than for 9M’19. However, HBL has prudently taken a general provision of Rs. 6.0 billion as a buffer against potential provisions arising from the impact of the pandemic, thus increasing its coverage to 100% of non-performing loans.

Q3 2020 continued with a strong business momentum, backed by HBL’s transformative digitization efforts. The quarter saw gains through partnerships with multiple business stakeholders on affordable housing, groundbreaking interventions through development finance initiatives and financial inclusion.


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At the time of filing this report, HBL’s share at the stock exchange was trading at Rs. 132.50, down by 0.12 or 0.09%, with a turnover of 816,221 shares on Friday.

93% Increase in HBL Mobile and Internet Banking Transactions

The bank’s customer base has risen to 27 million customers, driven primarily by an increase in the usage of its digital platform. There has been a 93% YoY increase in HBL Mobile and Internet Banking transaction volume.

Konnect by HBL has also seen a 157% increase in its throughput YoY. The bank also maintains a leadership position in HBL Pay, its cash management proposition. HBL Pay attained a 175% growth in volume. Transaction & Employee Banking also showed double-digit growth in digital receivable management, payments, and salary processing through its digital channels.

HBL also retained its top position in Consumer Finance. The bank ranks at the top in Credit Cards, Debit Cards, Merchant Acquiring, Personal Loans, and second in Auto Loans. HBL has the largest Credit Card portfolio in the country (Rs. 11 billion) with 50,000 cards issued YTD, the highest in the industry. The bank occupies pole position in the industry with its portfolio of 5.9 million Debit Cards in use.


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POS Acquiring maintained its market leader position with the highest number of POS terminals at 28,500. Rural Banking continues to lead the market with a 30% share. The Auto Loans business financed 4,550 vehicles.

HBL Fixed Income has the largest market share and has transacted a large volume of Rs. 6.5 trillion. HBL Infinity, Pakistan’s first online trading platform, has also seen a sharp increase in its number of users who processed transactions worth USD 1.7 billion.

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