HBL posts record post-tax profit of Rs 10 billion

KARACHI: HBL today announced its first quarter 2015 results and has delivered a record post-tax profit of Rs 10 billion, representing a growth of 63% over the same period last year. Consequently, earnings per share for the quarter increased to Rs 6.73 as against Rs 4.12 for the first quarter of 2014. Along with the results, the Board declared a quarterly dividend of Rs 3.50 per share.
This record performance was driven by strong revenue growth of more than Rs 7 billion. Net Interest Income increased significantly by 33% to over Rs 19 billion, as the Bank grew its average Balance Sheet by 17%. The Bank also built on its success in growing current accounts, which increased on average by a phenomenal 23% year on year and rose to almost 35% of total deposits. Non mark-up income increased sharply by 44% to Rs 7.8 billion for the quarter, with continued excellent performance from Bancassurance and 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 7.4% YoY. With HBL’s investments delivering strong business growth, the cost/income ratio reduced to 39.4% compared to 49.7% in Q1 2014.**