It seems that HBL is making huge strides in Pakistan’s banking industry, as the financial institution announced today that it has generated PKR 34.2 billion in profits after tax in 2016. Reports indicate that HBL has been focusing more towards diversifying its services in order to cater the needs of its diverse customers.
The financial institution has also announced an increase in its earning per share (EPS), which now stands at PKR 23.23. Along with these results, the bank also declared a final dividend of PKR 3.50 per share (up 35%), bringing the total dividend for the year of 2016 to PKR 14 per share. Moreover, the balance sheet of the bank has increased by 13% over December 2015 to reach PKR 2.5 trillion.
As per the bank’s announcement, HBL has managed to add PKR 250 billion in deposits, while maintaining its ‘Current Account, Savings Account’ (CASA) ratio. CASA ratio of a bank is the ratio of deposits in savings and current accounts to the total deposits. Usually, higher CASA ratio indicates lower cost of funds, because banks don’t give interest on current account deposits and the interest on saving accounts is usually very low. Moreover, HBL’s current accounts increased by more than 16% to reach approximately PKR 700 billion.
The bank also managed to increase its average domestic current accounts in 2016 by 19% compared to the fiscal year of 2015, which helps it to reduce the cost of deposits. Considering the fact that the country’s economy is improving, lending has also accelerated with increase in loans by over 17%. Hence, the bank was able to increase its net interest income by 5% to PKR 82.0 billion for 2016.
The bank has been making efforts to expand its network of ATMs and POS terminals. As of now, HBL has 2,000 ATMs and almost 15,000 POS machines across the country. In any case, it is safe to say that HBL is working hard to deliver strong results and is well positioned to leverage the upcoming economic opportunities.