{"id":1355,"date":"2024-10-16T17:01:29","date_gmt":"2024-10-16T17:01:29","guid":{"rendered":"https:\/\/pkfin.kotenterprises.dev\/?p=1355"},"modified":"2025-01-14T15:12:40","modified_gmt":"2025-01-14T15:12:40","slug":"hbl-reports-rs-85-9-billion-profit","status":"publish","type":"post","link":"https:\/\/pkfin.kotenterprises.dev\/?p=1355","title":{"rendered":"HBL Reports Rs 85.9 Billion Profit (Before Tax) for First 9 Months-2024"},"content":{"rendered":"\r\n

HBL<\/a> has announced a consolidated profit before tax of Rs 85.9 billion for the first nine months of 2024, marking a 3% increase compared to the same period last year. The bank’s strong performance, driven by its domestic businesses and steady international growth, led to a profit after tax of Rs 43.3 billion. Earnings per share for the period rose to Rs 30.03.<\/p>\r\n\r\n\r\n\r\n

In conjunction with the results, HBL declared an interim dividend of Rs 4 per share (40%), adding to the previously paid interim cash dividend of Rs 8 per share (80%). HBL also contributed Rs 52.9 billion in taxes to the national exchequer during this period.<\/p>\r\n\r\n\r\n\r\n

Strong Balance Sheet and Deposit Growth<\/strong><\/h2>\r\n

HBL’s balance sheet expanded by 12% over December 2023, reaching Rs 6.2 trillion. The bank’s deposits grew by Rs 660 billion, totaling Rs 4.8 trillion, with domestic deposits increasing by 18% to Rs 4.1 trillion. Low-cost deposits accounted for more than 65% of this growth, improving the bank\u2019s CASA ratio to 87.3%.<\/p>\r\n\r\n\r\n\r\n

Lending activity picked up as a result of recent policy rate cuts, with HBL\u2019s advances rising by 3.9% to Rs 1.8 trillion.<\/p>\r\n\r\n\r\n\r\n

Revenue and Fee Income Surge<\/strong><\/h2>\r\n

Net interest income grew by 4.2% to Rs 185.3 billion, while non-fund income surged by nearly 60%, reaching Rs 60.7 billion. HBL\u2019s fee income saw a 20% increase to Rs 36.6 billion, largely driven by the bank\u2019s cards business, which contributed 43% of the growth. Additional fee income from branch services, remittances, and Bancassurance further bolstered the bank\u2019s revenues.<\/p>\r\n\r\n\r\n\r\n

Overall, HBL\u2019s total revenue for the period increased by 14%, reaching Rs 246.0 billion.<\/p>\r\n\r\n\r\n\r\n

Cost Management and Capital Strength<\/strong><\/h2>\r\n

HBL\u2019s focus on cost efficiency led to a reduction in its cost-to-income ratio, which dropped to 55.6% in Q3 2024. The bank\u2019s Capital Adequacy Ratio (CAR) hit a four-year high of 16.39%, with the Tier-1 CAR rising by 11 basis points to 12.55%, well above regulatory requirements.<\/p>\r\n\r\n\r\n\r\n

CEO Remarks<\/strong><\/h2>\r\n

Muhammad Nassir Salim, President & CEO of HBL, attributed the strong results to the bank\u2019s leadership across all business segments and its dedication to serving clients. “HBL continues to accelerate its digital journey, with the majority of transactions and volumes now processed through our digital platforms,” he said. Salim also highlighted the bank\u2019s ongoing commitment to key sectors such as agriculture, SMEs, and sustainability. He added, “HBL is proud to contribute significantly to the national exchequer through its tax payments.”<\/p>\r\n\r\n\r\n\r\n

Digital and Business Growth<\/strong><\/h2>\r\n

HBL\u2019s digital banking channels saw significant growth, with mobile and internet banking transactions increasing by 34% year-on-year, and service requests up by 26%. In Q3 2024, the bank processed over Rs 2 trillion through its digital platforms. Konnect by HBL, the bank\u2019s branchless banking solution, processed Rs 586 billion, reflecting 16% year-on-year growth.<\/p>\r\n\r\n\r\n\r\n

HBL\u2019s credit cards business achieved a 30% increase in card usage, with Rs 237 billion in spending and a portfolio size of Rs 40 billion. The bank’s POS terminal throughput also grew by 27% to Rs 318 billion.<\/p>\r\n\r\n\r\n\r\n

In the agriculture sector, HBL extended over Rs 57 billion in lending. Meanwhile, advances to SMEs saw a 19% year-on-year increase, reaching Rs 91 billion.<\/p>\r\n\r\n\r\n\r\n

Investment Banking and Transaction Leadership<\/strong><\/h2>\r\n

HBL<\/a>\u2019s investment banking division closed multiple mandates worth Rs 145 billion, adding to the bank’s achievements, which included 16 international awards from organizations like Global Finance and The Asset Triple A.<\/p>\r\n\r\n\r\n\r\n

The bank maintained its leadership in transaction and employee banking, processing Rs 13.7 trillion in transactions, a 28% year-on-year increase. Digital transactions grew by 12%, representing 84% of overall business volumes.<\/p>\r\n\r\n\r\n\r\n

HBL Symphony\u00ae and Sustainability Initiatives<\/strong><\/h2>\r\n

HBL Symphony\u00ae, the bank\u2019s fixed-income trading platform, saw impressive growth, with trading volumes reaching Rs 2.2 trillion \u2013 nearly 14 times higher than the previous year.<\/p>\r\n\r\n\r\n\r\n

HBL continues to emphasize sustainability under the Aga Khan Development Network\u2019s guidance, with a Social and Environmental Management system implemented across all international locations. This system allows the bank to assess the environmental and social risks of its lending portfolio.<\/p>\r\n\r\n\r\n\r\n

Community and Philanthropic Efforts<\/strong><\/h2>\r\n

HBL\u2019s philanthropic arm, the HBL Foundation, continued its support for healthcare and education. In Q3 2024, the foundation allocated over Rs 128 million to healthcare initiatives, benefiting more than 50,000 individuals. The foundation also invested nearly Rs 23 million in education during the quarter.<\/p>\r\n\r\n\r\n\r\n

Through the HBL Employee Volunteering Program, the bank\u2019s staff contributed over 2,800 hours to community service projects, further underscoring HBL’s commitment to making a positive impact on the communities it serves.<\/p>\r\n","protected":false},"excerpt":{"rendered":"

HBL has announced a consolidated profit before tax of Rs 85.9 billion for the first nine months of 2024, marking a 3% increase compared to the same period last year. The bank’s strong performance, driven by its domestic businesses and steady international growth, led to a profit after tax of Rs 43.3 billion. Earnings per […]<\/p>\n","protected":false},"author":1,"featured_media":1356,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_FSMCFIC_featured_image_caption":"","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","footnotes":""},"categories":[8],"tags":[833,402,46,14,59],"class_list":["post","format-standard"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t