Bank AL Habib declares Rs. 18.70 billion profit after tax

The Board of Directors of Bank AL Habib Limited (the Bank) announced the Bank's financial results for the year ended 31 December 2021 and proposed 70 percent cash dividend. The Bank posted profit after taxation of Rs. 18.70 billion i.e. an increase of 5.00 percent compared to the previous year.




The Bank’s profit before tax was recorded at Rs. 30.27 billion, translating into an EPS of Rs. 16.83 per share as against Rs. 16.03 per share for the prior year. The Bank managed to significantly increase its fee and commission income by 40.21 percent as compared to the corresponding period last year. The Bank reported an increase in foreign exchange income by 38.60 percent. Dividend income for the year ended 31 December 2021 was recorded at Rs. 655.08 million. 


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Total Assets reached to Rs. 1.85 trillion, an increase of 21.52 percent as compared to 31 December 2020. Net loans and advances grew by 43.81 percent to reach Rs. 733.80 billion whilst the investments increased by 8.06 percent to reach Rs. 826.60 billion, demonstrating an overall growth in the total assets, compared to the previous year. Due to the Bank's sound risk management practices and prudent financing strategy, the NPL ratio of the Bank fell to 1.04 percent. The Bank achieved a coverage ratio of 168.97 percent which reflects the prudent approach adopted towards non-performing loans.

 

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Deposits of the Bank increased by 19.11 percent year-over-year bringing the total deposits to Rs. 1.31 trillion as on 31 December 2021. Gross Advances to deposit ratio stood at 57.02 percent. 


The Bank continued with its strategy for outreach expansion, adding significant number of branches every year. The Bank opened 107 branches during the year. The Bank’s branch network has now reached 956 branches / sub branches & 3 booths having coverage in 381 cities in Pakistan, 2 foreign branches (one each in Bahrain and Malaysia) and 4 representative offices (one each in Dubai, Istanbul, Beijing, Nairobi) outside Pakistan. In line with the Bank’s vision to provide convenience to customers, the Bank is operating a network of 1,160 ATMs across Pakistan.


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The Bank received the Runner Up award for “Best Bank of the Year (Large-Size Banks) 2020” from the Chartered Financial Analyst (CFA) Society Pakistan. This award recognizes the outstanding performance of a financial institution.


Pakistan Credit Rating Agency Limited (PACRA) has upgraded the Bank's long term entity rating from AA+ (Double A plus) to AAA (Triple A) while maintaining the short term entity rating at A1+ (A One plus). This long term credit rating (AAA) denotes the highest credit quality with the lowest expectation of credit risk, and indicates exceptionally strong capacity for timely payment of financial commitments.


The ratings of our unsecured, subordinated Term Finance Certificates (TFCs) were also upgraded from AA (Double A) to AA+ (Double A Plus) for TFC-2018 and from AA- (Double A minus) to AA (Double A) for TFC-2017 (perpetual). The initial rating of our unsecured, subordinated TFC–2021 issued during the year is AA+ (Double A plus). These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments


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