KARACHI: HBL has posted annual profit after tax of Rs 31.8 billion for the year 2014 with 38 per cent growth over 2013 as earnings per share (eps) also increased from 15.59 to 21.63 over the same period.
Profit before tax (pbt) rose by a solid 34% to Rs 48.5 billion. This extraordinary performance was driven by a 25% increase in total revenue, improving efficiency and stable provisions.
Net Interest Income increased by 25% to Rs. 69.1 billion, driven by a 9% growth in the average Balance Sheet and a phenomenal 25% growth in domestic current accounts which grew by nearly Rs 80 billion. Total deposits grew to a massive Rs 1.5 trillion, while the overall Balance Sheet set a new record at Rs 1.9 trillion.
Non Mark-up Income increased significantly to Rs. 23.5 billion, based on a 20% increase in fees and commissions as Bancassurance, Investment Banking and general banking products all delivered strong results. HBL’s Treasury was successful in capturing higher customer flows and grew revenues by 30%, while HBL’s banking and insurance associates demonstrated superior performance, with a 37% increase in revenue contribution.
During 2014, the Bank continued to invest heavily in people, technology and infrastructure in line with its philosophy of using technology to improve the customer experience and further its financial inclusion objective. Administrative costs increased by 14% over the previous year, but efficiency gains were made to reduce the cost/income ratio from 48.6% in 2013 to 44.6% in 2014.
HBL remains committed to financial inclusion by providing the widest access to financial services and is now the market leader with 1,592 ATMs and the largest number of debit cards in Pakistan. During the year the Bank launched an Internet Payment Gateway which will enable it to serve the growing e-commerce market and also initiated POS acquiring. HBL is now one of the main institutions for G2P payments on account of social transfers.
HBL maintains its leading position in Rural Banking in line with its vision of being a national institution and supporting the mainstay of the economy with a 23% growth in lending. The Bank has been working on a unique value proposition for women customers to facilitate their access tofinancial services. The Bank remains the largest provider of cash management services with over Rs 1.5 trillion in volumes. Islamic Banking business also had an excellent year, more than doubling its deposits to over Rs 100 billion.
As recognition of its all-round excellent performance in 2014,HBL was conferred with the Bank of the Year, Pakistan award by The Banker, a publication of the Financial Times, and Best Bank in Pakistan by Euromoney.HBL remains the soundest Bank with a Capital Adequacy Ratio of 16.2% under the Basel III framework. The Bank remains a AAA rated bank and was conferred the Safest Bank in Pakistan award by Global Finance.
