HBL'S profit before tax takes 3pc jump in Sept-2019.

Byline: S. Kamal Hayder Kazmi

During the period nine months ended September 30, 2019 (9M'19), the financial experts of Habib Bank Limited (HBL) have recorded that the profit before tax (PBT) was at Rs 18.3 billion, 3 percent higher than for the corresponding period previous year. This is despite the significant impact of the falling Rupee and the equity market, which have together reduced pre-tax profit by Rs 7.4 billion. The experts in HBL also calculated in the report of the bank that the profit after tax (PAT) of Rs 8.8 billion for 9M'19 is, however, Rs 1.1 billion lower than previous year, because of the retrospective imposition of Rs 1.9 billion of Super Tax on 2017 earnings. HBL's earnings per share (EPS) for 9M'19 are at Rs 5.89. The Bank's core domestic business is remained on an optimistic growth trajectory with market shares of loans and deposits both are increasing over the last quarter.

HBL, Pakistan's largest bank, was the first commercial bank to be established in Pakistan and is a leading full-service commercial bank. The key areas of operation are Branch Banking, Corporate and Investment Banking, Treasury, SME and Rural Banking, Financial Institutions and Global Trade Services, Transaction Banking and Islamic Banking.

The Branch Banking business is the mainstay of the Bank, positioning HBL as the largest retail bank in Pakistan catering to all market segments. HBL Corporate and Investment Banking Group is a leading provider of financial services to multinational and local corporate clients across the country. The Bank also has the largest Treasury operations in Pakistan and plays a key role in Pakistan's domestic markets.

It is also calculated that during the year, total domestic deposits grew by Rs 118 billion, to Rs 2.0 trillion. With almost all deposit growth coming from current and savings accounts, the CASA mix enhanced from 85.4 percent in December 2018 to 85.9 percent in September 2019. Broad based growth also resulted in domestic advances growing to Rs 954 billion. International business deposits grew by 12 percent over December 2018, with loans rising by nearly 30 percent. HBL's total deposits thus grew by 7.0 percent to Rs 2.3 trillion and total advances increased by 8.1 percent, to Rs 1.2 trillion.

A growth of Rs 87 billion in average domestic deposits resulted in a 7percent growth in the domestic balance sheet. With most of this coming from current accounts, the increase in the cost of deposits was contained...