The Board of Directors of Bank AL Habib Limited met on Wednesday to review and announce the bank’s financial results for the year ended 31 December 2020, and proposed a 45pc cash dividend.
The bank, in the backdrop of Covid-19 pandemic, recorded a solid growth in terms of both balance sheet size and annual profit. According to financial results, the bank’s profit after tax was recorded at Rs17.81 billion i.e. an increase of 59.48pc compared to the corresponding period last year.
The bank’s profit before tax was recorded at Rs28.58 billion, showing a growth of 50.34pc compared to last year, driven by markup income as well as fees and commission income translating into an earning per share of Rs16.03 per share against Rs10.05 in 2019.
Net markup income increased by 39.90pc as compared to last year, bringing it to Rs57.62 billion, reflecting the bank’s success in maintaining sustainable growth. Despite challenging conditions, pressure on the country’s trade and free online offerings during the pandemic, the bank managed to increase its fee and commission income by 9.60pc as compared to last year.
Total assets reached Rs1.52 trillion, an increase of 17.20pc as compared to 31 December 2019. Loans and advances grew 4.42pc to Rs510.25 billion whilst the investments increased 30.51pc to reach Rs764.94 billion, leading to overall growth in the total assets. Due to the ban’s sound risk management practices and prudent financing strategy, the NPL ratio was recorded at 1.41pc.