Dividend payout announcement of HBL (Bank Sector)

Bank sector is going good in PSX stock market. Habib Bank Limited (HBL) held its Analyst Briefing session today. To recall, the bank posted earnings of PkR PkR27.0bn (EPS: PkR18.2) compared to PkR25.2bn (EPS: PkR17.2) in the same period last year. The bank also announced a dividend of PkR1.75/sh, taking cumulative dividends for current financial year to PkR5.25/sh.

Source:google

· For 3QCY21, the bank posted earnings of PkR6.2/sh, down 5.4%QoQ/11.2%YoY. NIMs stood at 4.5% for the quarter which the management believes to have bottomed out. On a QoQ basis, NIMs declined by 30bps owing to hefty maturity of high-yielding PIBs.

Source:google

· The management expects interest rates to increase to 9.00%-9.50% by FY22.

· Floating rate PIBs occupy 55% share in total PIBs holding with cumulative yield of PIB book standing at 9.0%.

· CAR of the bank stood at 16.6% as of Sep’21 with slight deterioration (down 20bps QoQ) coming from rupee devaluation. Going forward, the management expects dividend payout at current levels with possibility of an increase only in the event of capital buffer improving to +2% (Tier-1). IFRS-9 implementation is likely to have a 50bps capital impact.

· HBL has provided PkR5.1bn against full exposure belonging to a specific customer.

· The management does not anticipate Treasury Single Account to have a material impact.

· The bank has a 20% share in RDA, the highest in Industry whereas it has a 9% share in total remittance flows.
Hope the post is helpful to investors.

Regards!