Habib Bank Limited (HBL) announced consolidated earnings of Rs3,494mn for 2Q2022 translating into an EPS of Rs2.32 down 63% YoY and 59% QoQ. Alongside the result a dividend payout of Rs1.50/share was also announced bringing total payout for the year thus far at Rs3.75/share.

The Net Interest Income for the bank clocked in at Rs37,630mn up 16% YoY and 4% sequentially. Investment income which constitutes 54% of total interest earned depicted an increase of 20% sequentially. This is most likely due to build up in T-Bill book to the tune of Rs98bn in the quarter.

On the expense front repo cost went up 58% sequentially weighing the interest income down while deposit cost increased by 24% QoQ.

Non funded income was led by a massive 110% QoQ increase in forex income.

The big story for the quarter has been the effective taxation clocking in at 83% denting the bottom line significantly.

Barring the taxation Profit before tax increased by 20% YoY and 37% QoQ depicting solid performance at the behest of higher interest rates and smart forex trading.

Admin expenses declined by 5% QoQ bringing cost to income down to 58% from 66% in the previous quarter.

Courtesy- research@ahcml.com