Habib Metropolitan Bank Limited hosted a corporate briefing for CY22, today. Following are the key takeaways:

During the year, HMB showed tremendous growth with PBT up by 28%YoY, Advances up by 9%YoY, and Current deposits up by 14%YoY. The bank posted a highest-ever PAT of PKR14.3bn (EPS PKR13.61) against PKR13.5bn (EPS PKR12.84), showing a surge of 5.92%YoY coupled with a significant rise in interest earned by 81.4%YoY to clock in at PKR133bn in CY22 as compared to PKR73.3bn. The growth was primarily due to the low-cost deposit mobilization. In addition, the operating profit increased by 32%YoY to PKR31.1bn against PKR23.5bn.

The bank efficiently maintained both ROA and ROE at 1.1% and 21% and cost to income ratio at 42.1% in CY22 as compared to the previous year. The year-on-year return was slightly low due to additional tax impact.

On account of advances by sector, the textile sector recorded the highest share of 42% amounting to PKR193.4bn, however, the bank continued to increase the coverage and focused on robust recoveries and prudent lending.

HMB investments mix accounts for 40% of Market treasury bills, 22% of PIB’s fixed, and 33% of PIB’s floating amounting to PKR281.1bn, PKR154.7bn, and PKR234.8bn, respectively.

The Bank declared a DPS of PKR5.25 in CY22 as compared to PKR5.00 in CY21 with dividend yield and payout ratio of 15.5% and 38.6%, respectively. However, the PE ratio declined to 2.5 in CY22 against 3.3 in SPLY due to the fall in share price whereas, the breakup value per share increased to 69.2 in CY22 from 60.5 in CY21.

During the year, the bank opened 41 new branches including 5 Islamic branches taking to 500 total branches with 61 Islamic branches in 194 cities.

Future Outlook

• Going ahead, the bank is focusing on maintaining asset quality, encouraging low-cost deposits, and creating a strong balance sheet and value for shareholders.

Courtesy – Spectrum Research