The HBL has declared a consolidated profit after tax of Rs 15.7 billion for the first half of 2017, compared to Rs 16.0 billion in H1 16, with earnings per share of Rs 10.56. The pre-tax profit for the first half of 2017 was Rs 27.7 billion. Along with the results, the bank declared a dividend of Rs 3.5 per share (35%), bringing the total dividend for the year 2017 to Rs 7 (70%). HBL’s deposits have crossed the Rs 2 trillion mark, driving a 7.4% growth in the balance sheet, to Rs 2.7 trillion. In the first six months of 2017, the Bank added over Rs 105 billion in domestic CASA deposits, and the ratio of domestic current accounts rose to 35.1% in June2017.Increasing demand for private sector credit has resulted in strong lending growth with net advances increasing by 11% to Rs 831 billion. With all business segments registering significant increases, average domestic loans for H1 17 grew by 28% over H1 16, and average domestic current accounts increased by 17% for the same period. Consequently, despite the spread compression prevalent across the industry, HBL was able to maintain its net interest income for the half year ended June 30, 2017at the previous year’s level of Rs 41.4 billion. Non-mark-up income continued to deliver a strong performance across all business lines, growing by 14% over H1 16 to reach Rs 16.4 billion. Fees and commissions increased by 9% to Rs 10.2 billion, with the growth coming from core banking businesses, asset management and home remittances. Despite the overall decrease in remittances into Pakistan, HBL successfully channelled higher flows through its counters, further strengthening its market leadership with a 26.6% share. Income from treasury related activities increased by 21%, to Rs3.9 billion and contribution from the Bank’s affiliates rose by 29% to Rs 1.9 billion. Non-performing loans reduced further, and total provisions for H1 17reduced by 19% compared to H1 16.The infection ratio reduced to 8.4% and the coverage ratio strengthened further, to 92.5%. Even with the healthy loan growth, the Bank was able to slightly increase its consolidated Tier 1 Capital Adequacy Ratio (CAR) to12.1% with the total CAR declining marginally to15.4% compared to December 2016.The capital ratios remain strong and well above regulatory requirements. During this quarter, the Bank’s credit ratings were also re-affirmed by JCR-VIS at AAA/A-1+ for long term and short term respectively with the rating of its subordinated debt also at AAA. Published in Daily Times, August 12th 2017.