HBL posts record profit of Rs. 62.0 billion for 2021, focused on client centricity and financial inclusion driven by digitalization.

HBL today declared a record consolidated profit before tax of Rs. 62.0 billion for 2021, achieving a growth of 17% over 2020. Profit after tax increased to Rs. 35.5 billion in 2021, also the highest ever, and earnings per share increased from Rs. 21.06 in 2020 to Rs. 23.88. The Bank declared a final dividend of Rs. 2.25 per share (22.5%).

During the year, HBL became the first bank with a Rs. 4 trillion balance sheet, with year-end footings of Rs. 4.3 trillion, a 12% growth over Dec'20.

Domestic current deposits achieved the Rs. 1 trillion landmark, and total domestic deposits crossed the Rs. 3 trillion mark, improving market share to 14.14%. With a turnaround in the international businesses, HBL's total deposits increased by 19% to Rs. 3.4 trillion.

Advances continued their growth trajectory, rising by 23% to reach Rs. 1.5 trillion with double digit growth across all lending units. HBL's leading position in the Consumer business was further reinforced as the portfolio crossed the landmark number of Rs. 100 billion. HBL's focus on priority sectors led to agriculture lending reaching an all-time high of Rs. 40 billion. Despite the strong growth in advances, the Bank's Tier I and Total CAR remained well above regulatory requirements.

HBL delivered a record revenue of Rs. 168 billion in 2021, on the back of a Rs. 450 billion expansion in the average balance sheet and an impressive growth in non-fund income. The Bank's net interest income increased to Rs. 131 billion, and non-fund income grew by nearly 20% to Rs. 36 billion; the latter was driven by a stellar growth of 35% in fees and commissions, which increased to Rs. 25 billion. While the increase in fees was broad-based, the flagship cards and consumer businesses alone delivered a phenomenal growth of 58%; this was supported by exceptional performances in trade, remittances, and investment banking.

Total expenses of the Bank remained well managed, rising only marginally by 2%. With rising revenue and more efficient operations, HBL was able to achieve a substantial reduction in its cost to income ratio (excluding capital gains) which fell from 61.2% to 57.5%. Asset quality, through the pandemic, was closely monitored and prudently managed with the infection ratio improving further, to an all-time low of 5.1%.

Commenting on the Bank's performance, Muhammad Aurangzeb, President and CEO - HBL said, "HBL's 2021 results, underpinned by client centricity, were driven by strong organic growth...