karachi: HBL today declared a consolidated profit after tax of Rs 34.2 billion for the full year 2016, with earnings per share of Rs 23.23. Along with the results, the Bank declared a final dividend of Rs 3.50 per share (35%), bringing the total dividend for the year to Rs 14 per share.
HBL’s balance sheet has grown by 13% over December 2015 to reach Rs 2.5 trillion. Overall, the bank added Rs 250 billion in deposits, while maintaining its CASA ratio. Current accounts increased by more than 16%, reaching nearly Rs 700 billion with the current account mix improving to 37% of total deposits. In 2016, HBL grew its average domestic current accounts by 19% over 2015, enabling the bank to reduce its cost of deposits. With the improved economic climate, lending growth has accelerated with loans growing by over 17%, driven by increases in corporate lending, but with strong support from the SME and Consumer segments. The Bank was thus able to grow net interest income by 5% to Rs 82.0 billion for 2016.
Fees and Commissions rose by 8% to Rs 18.7 billion with new records being set in bank assurance, investment banking and consumer finance. Trade, remittances and general banking related fees continued to make significant contributions to the fee income. HBL’s prudent lending and active recovery efforts have resulted in a decade low provision charge of less than Rs 1 billion, an 81% reduction over 2015. Simultaneously, the bank was able to improve its asset quality as the infection ratio fell to single digits, its lowest level in the last 8 years. HBL’s reach now includes 2,000 ATMs and nearly 15,000 POS machines to provide access and convenience to its customers across Pakistan.
The consolidated Capital Adequacy Ratio (CAR) at the end of 2016 was 15.5%, with the Tier 1 CAR at 12.0%, both well above regulatory requirements. The bank’s local credit ratings remain in the highest possible AAA/A-1+ categories for long term and short term respectively, while international rating agencies have also reaffirmed HBL’s rating. These are reflective of the bank’s healthy capitalization ratios, sound liquidity profile and its systemic importance. During the year, HBL continued to receive accolades including Bank of the Year in Pakistan, by The Banker, UK, the Best Domestic Bank in Pakistan by Asiamoney and the Safest Bank in Pakistan, by Global Finance.
HBL has continued to deliver strong results and is well positioned to leverage the upcoming economic opportunities. Over the last 75 years, HBL has served Pakistan and its people with pride and passion as the country’s leading commercial bank. The Bank will strive to play its role in the nation’s development and to provide increasing levels of service and innovative products to its valued customers in the years ahead.