HBL has reported a consolidated profit before tax of Rs. 57.8 billion for the first half of 2024, 12 percent higher than in the same period last year. The profit after tax increased by 10 percent YoY, to Rs. 29.1 billion, as earnings per share improved from Rs. 17.86 in H1 2023 to Rs. 20.18 in H1 2024.

Along with the results, the Bank declared an interim Cash Dividend of Rs. 4 per share (i.e. 40 percent) for the second quarter. This is in addition to the interim Cash Dividend already paid of Rs. 4 per share (i.e. 40 percent).

HBL’s balance sheet footing increased to Rs. 6.2 trillion with total deposits closing at Rs. 4.8 trillion, an impressive growth of more than Rs. 700 billion over December 2023. This was largely driven by domestic deposit growth which enabled HBL to increase its market share from 12.4 percent in December 2023 to 13.3 percent in June 2024. Low-cost deposits steered ~60 percent of the growth, with the CASA ratio improving to 87 percent. Credit demand in the country has remained low. Nevertheless, domestic advances increased by 2.2 percent during the quarter, with total advances at Rs. 1.8 trillion. The Bank’s market-leading Consumer business continued marching on its growth trajectory, reaching Rs. 133.8 billion in June 2024.

Volumetric expansion in both the domestic and international markets helped drive a growth in net interest income, to Rs. 121.6 billion. Non-fund income increased by 64 percent over the same period last year, to nearly Rs. 40 billion. HBL continued to maintain leadership in fee income, which posted a stellar growth of 22 percent increasing to Rs. 24.2 billion in H1 2024. The flagship Cards business contributed nearly half of the fee growth, while branch fees also rebounded. Consequently, HBL’s total revenue increased by 17 percent to Rs. 161.1 billion.

Despite persistent high inflation, a focus on costs enabled HBL to reduce expenses over the previous quarter, with the cost / income ratio declining from 57.2 percent in Q1 2024 to 56.7 percent in Q2 2024. The strong results led to growth in internally generated capital, raising the Tier-1 Capital Adequacy Ratio to 12.65 percent and total CAR to 16.32 percent, and also enabling a continued higher dividend payout.

Commenting on the Bank’s results, Muhammad Nassir Salim, President & CEO – HBL, said, “HBL’s strong H1 2024 performance reflects our commitment to innovation, expanding our digital footprint, and providing best-in-class financial solutions for all segments of our client base. In recognition of these efforts, Euromoney, the prestigious international publication, declared HBL Pakistan’s Best Bank. Looking ahead, the Bank will continue to prioritize its clients’ financial well-being and play its part in Pakistan’s economic development.”

Business Developments
HBL’s digital transformation, led by Konnect by HBL and HBL Mobile, continues at an accelerated pace. HBL’s mobile and internet banking witnessed a year-on-year growth of 36 percent in financial transactions and 29 percent in service requests, with Rs. 3.5 trillion processed in H1 2024. Konnect by HBL, the Bank’s branchless banking platform, processed a volume of Rs. 560 billion, reflecting a year-on-year growth of 12 percent.

The credit cards business further consolidated its leadership with a growth of over 34 percent in card usage, achieving Rs. 151 billion in spend and a portfolio size of Rs. 37 billion, up by 36 percent over the previous year. HBL’s momentum of growth carried into the POS merchant acquiring business, where HBL terminals’ throughput grew by 28 percent to Rs. 208 billion from the same period last year.

Agriculture and SME are the Bank’s strategic imperatives. HBL’s Agriculture Financing Portfolio reached nearly Rs 60 billion. HBL’s resolve to grow the SME business has led to accelerated growth in advances registering a year-on-year growth of 25 percent.

At the product end, the Bank’s financial inclusion efforts are being led by HBL Nisa, a platform dedicated to developing financial solutions for women. In H1 2024, HBL Nisa onboarded over 50,000 new accounts, generating a deposit volume of Rs. 42 billion.

HBL continues to provide innovative value-added services to its corporate and institutional clients. HBL Symphony®, the Bank’s fixed-income trading platform, achieved significant growth with trading volumes surpassing Rs. 1.2 trillion at the end of H1 2024, marking a substantial 5.5 times increase compared to the total volume traded on the platform last year.

The Bank’s efforts in making a difference in the communities it serves are underscored through different initiatives in H1 2024. To promote diversity, equity & inclusion (DEI), HBL organized an in-person sign language learning session for the staff.

HBL achieved a first-of-its-kind accomplishment in the banking sector by completing two modular pilot branches in Karachi and Peshawar during H1 2024. The technology, verified by the NED University in Karachi, is an innovative approach that has resulted in a 35 percent reduction in construction time (from 90 to 60 days), water conservation, and use of cement per branch. HBL has also discontinued single-use plastic water bottles in line with its pledge to have net zero emissions by 2030.

Moreover, the HBL Foundation allocated Rs. 150 million for healthcare initiatives and Rs. 45 million for educational programs.

As part of its continued efforts to engage with the youth, HBL is excited to lead Pakistan’s Esports landscape with its ‘Aur Khelo’ tournaments. The Bank’s journey began with the EAFC Gaming Tournament and continued with the Tekken 8 Women’s Gaming Tournament, showcasing its dedication to fostering an inclusive and vibrant Esports ecosystem within the country. The recent ‘Valorant’ tournament, the third in the ‘Aur Khelo’ series, further solidifies HBL’s position as a pivotal player in shaping the future of Esports in Pakistan.

HBL has reported a consolidated profit before tax of Rs. 57.8 billion for the first half of 2024, 12 percent higher than in the same period last year. The profit after tax increased by 10 percent YoY, to Rs. 29.1 billion, as earnings per share improved from Rs. 17.86 in H1 2023 to Rs. 20.18 in H1 2024.

Along with the results, the Bank declared an interim Cash Dividend of Rs. 4 per share (i.e. 40 percent) for the second quarter. This is in addition to the interim Cash Dividend already paid of Rs. 4 per share (i.e. 40 percent).

HBL’s balance sheet footing increased to Rs. 6.2 trillion with total deposits closing at Rs. 4.8 trillion, an impressive growth of more than Rs. 700 billion over December 2023. This was largely driven by domestic deposit growth which enabled HBL to increase its market share from 12.4 percent in December 2023 to 13.3 percent in June 2024. Low-cost deposits steered ~60 percent of the growth, with the CASA ratio improving to 87 percent.

Credit demand in the country has remained low. Nevertheless, domestic advances increased by 2.2 percent during the quarter, with total advances at Rs. 1.8 trillion. The Bank’s market-leading Consumer business continued marching on its growth trajectory, reaching Rs. 133.8 billion in June 2024.

Volumetric expansion in domestic and international markets helped drive a growth in net interest income, to Rs. 121.6 billion. Non-fund income increased by 64 percent over the same period last year, to nearly Rs. 40 billion.

HBL continued to maintain leadership in fee income, which posted a stellar growth of 22 percent increasing to Rs. 24.2 billion in H1 2024. The flagship Cards business contributed nearly half the fee growth, while branch fees rebounded. Consequently, HBL’s total revenue increased by 17 percent to Rs. 161.1 billion.

Despite persistent high inflation, a focus on costs enabled HBL to reduce expenses over the previous quarter, with the cost/income ratio declining from 57.2 percent in Q1 2024 to 56.7 percent in Q2 2024. The strong results led to growth in internally generated capital, raising the Tier-1 Capital Adequacy Ratio to 12.65 percent and total CAR to 16.32 percent, and also enabling a continued higher dividend payout.

Commenting on the Bank’s results, Muhammad Nassir Salim, President & CEO – HBL, said, “HBL’s strong H1 2024 performance reflects our commitment to innovation, expanding our digital footprint, and providing best-in-class financial solutions for all segments of our client base. In recognition of these efforts, Euromoney, the prestigious international publication, declared HBL Pakistan’s Best Bank. Looking ahead, the Bank will continue to prioritize its clients’ financial well-being and play its part in Pakistan’s economic development.”

Business Developments
HBL’s digital transformation, led by Konnect by HBL and HBL Mobile, continues at an accelerated pace. HBL’s mobile and internet banking witnessed a year-on-year growth of 36 percent in financial transactions and 29 percent in service requests, with Rs. 3.5 trillion processed in H1 2024.

Konnect by HBL, the Bank’s branchless banking platform, processed a volume of Rs. 560 billion, reflecting a year-on-year growth of 12 percent.

The credit cards business further consolidated its leadership with a growth of over 34 percent in card usage, achieving Rs. 151 billion in spend and a portfolio size of Rs. 37 billion, up by 36 percent over the previous year. HBL’s momentum of growth carried into the POS merchant acquiring business, where HBL terminals’ throughput grew by 28 percent to Rs. 208 billion from the same period last year.

Agriculture and SME are the Bank’s strategic imperatives. HBL’s Agriculture Financing Portfolio reached nearly Rs 60 billion. HBL’s resolve to grow the SME business has led to accelerated growth in advances registering a year-on-year growth of 25 percent.

At the product end, the Bank’s financial inclusion efforts are being led by HBL Nisa, a platform dedicated to developing financial solutions for women. In H1 2024, HBL Nisa onboarded over 50,000 new accounts, generating a deposit volume of Rs. 42 billion.

HBL continues to provide innovative value-added services to its corporate and institutional clients. HBL Symphony®, the Bank’s fixed-income trading platform, achieved significant growth with trading volumes surpassing Rs. 1.2 trillion at the end of H1 2024, marking a substantial 5.5 times increase compared to the total volume traded on the platform last year.

The Bank’s efforts in making a difference in the communities it serves are underscored through different initiatives in H1 2024. To promote diversity, equity & inclusion (DEI), HBL organized an in-person sign language learning session for the staff.