Corporate Briefing Notes
Habib Metropolitan Bank Limited (HMB) held its corporate briefing session today to discuss its financial results for CY22 and to highlight future outlook of the bank.
Key Highlights
● To recall, PAT of the bank clocked in at PKR15bn (EPS: PKR13.72/sh), up by 7% YoY during CY22. However, PBT of the bank increased by 28% YoY in 2022. NII of the bank recorded at PKR40.6bn in CY22 against PKR29.5bn in SPLY.
● HMB announced a final cash dividend of PKR3.25/sh. taking its full year payout to PKR5.25/sh. HMB’s dividend yield increased to 15.5% in CY22 against 12% in the last year.
● On the investment front, the bank has a well-diversified portfolio mix of Market Treasury Bills, PIB floating and fixed PIB with the portion of 40%, 33%, and 22% respectively. However, HMB’s advances mix mainly comprises of textile (42%) and Power (9%).
● Regarding the challenges faced by textile sectors, the management shared that they do not see any major defaults on this side, except some delays in payments by sector and restructuring of loans.
● HMB opened 41 new branches, including 5 Islamic branches during CY22. Total branch network stands at 500 as of Dec 2022.
● Banks’ current deposits grew by 14% YoY, while advances increased by 9% YoY in CY22. Total deposits growth for the bank clocked in at 14% YoY during the year. On the other hand, Islamic Banking’s current deposits rose by 25% YoY followed by 110% YoY growth in PBT.
● The Cost-to-Income Ratio for CY22 stood at 42%, while the Cost of Deposits doubled from 3.8% in the previous year to 7.2% in the current year. Additionally, the ROE and ROA were reported at 21% and 1.1% respectively.
● The bank is piling up provision cover in order to protect itself from any uncertain economic shocks in future.
Future Outlook
● The management informed that they will continuously invest in franchise and also focus on low-cost deposits. Given the current economic situations, HMB targets to adopt prudent approach in lending loan while maintaining asset quality. Moreover, the bank aims to expand the proportion of Islamic banking share in the ongoing year.
Important Disclosures
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