KARACHI: HBL announced its first quarter 2015 results and has delivered arecord post-tax profit of Rs 10 billion, representing a growth of 63per cent over the same period last year. Consequently, earnings per share for the quarter increased to Rs6.73 as against Rs 4.12 for the first quarter of 2014. Along with the results, the Board declared a quarterly dividend of Rs3.50 per share.
This record performance was driven by strong revenue growth of more than Rs 7 billion. Net Interest Income increased significantly by 33per cent to over Rs 19 billion, as the Bank grew its average Balance Sheet by 17per cent. The Bank also built on its success in growing current accounts, which increased on average by a phenomenal 23per cent year on year androse to almost 35per cent of total deposits. Nonmark-up income increased sharply by 44per cent to Rs7.8 billion for the quarter, with continued excellent performance from Bancassuranceand investment banking, and realization of capital gains from sale of securities.
HBL continued to invest in technology, distribution and people, with over 100 new ATMs and 2,500 new POS terminals added to the network. Despite this, administrative expense growth for the quarter was contained at 7.4per cent YoY. With HBL’s investments delivering strong business growth, the cost/income ratio reduced to 39.4per cent compared to 49.7per cent in Q1 2014.
The consolidated Capital Adequacy Ratio improved from 16.2per cent in Dec 2014 to 16.7per cent in Mar 2015 reflecting the robust capital position of the Bank.HBL’s Return on Assets improved from 1.4per cent in Q1 2014 to 2.1per cent in Q1 2015, while the Return on Equity improved to 26.7per cent.
During the quarter, the Government sold its entire remaining shareholding in the Bank in a landmark transaction, led by the Privatization Commission. The issue was oversubscribed by 1.6 times and is a reflection of the value seen by investors in this institution. The transaction size was over USD 1 billion and is the largest ever equity offering, not just in Pakistan, but in Asian Frontier Markets. More than 75per cent of the proceeds came from foreign investors covering all significant investment locations and including major International Financial Institutions.
