HBL announced earnings (PAT) today for 4QCY23 at PKR 14.8bn (EPS: PKR 10.12), depicting an increase of 39% YoY | -11% QoQ (4QCY22 EPS: PKR 7.27). This jump in overall earnings was mainly due to growth in total revenue during the year. Along with the result, the bank announced a final DPS of PKR 4, taking the total dividend for the year to PKR 9.75/share (CY22: PKR 6.75/share).

 Result Highlights       

The bank’s net interest income was settled at PKR 64.2bn during 4QCY23, increasing 30% YoY | -1% QoQ basis. With this, the total NII for CY23 went up to PKR 242bn, marking a 46% YoY jump. Interest earned jumped 63% during CY23, while interest expense increased by 74%.

NFI depicted an increase of 83% YoY and a whopping 56% QoQ during 4QCY23, taking CY23’s total to PKR 57.4bn (+23% YoY). This jump in CY23 is primarily due to 34% and 53% (on a YoY basis) in fee and dividend income, respectively. On the contrary, the FX income came down 61% YoY during CY23, clocking in at PKR 4.6bn.

Provisioning for the bank clocked in at PKR 5.8bn during 4QCY23 (4QCY22: PKR 5.0bn), depicting an increase of 19% YoY. This takes total provisioning to PKR 13.3bn during CY23 (+56% YoY).

The bank’s OPEX increased 39% YoY in 4QCY23, clocking in at PKR 47.7bn (4QCY22: PKR 34.3bn). With this, the Cost/Income ratio remained unchanged at 56.3% in 4QCY23 compared to the same period the previous year.

The effective tax rate was 49% during 4QCY23 compared to 48% last quarter. With this, the effective tax for CY23 stood at 49% (CY22: 55%).

Courtesy – AHL Research