HBL Wednesday declared a consolidated profit after tax of Rs 3.2 billion, with earnings per share for Q1''19 at Rs 2.08. Along with the results, the Board declared a dividend of Rs 1.25/- per share (12.5 percent). Profit before tax for the three months of 2019 was Rs 8.4 billion, an increase of 14 percent over the same period last year. The retrospective imposition of Super Tax on 2017 earnings, lowered the Bank''s profit after tax by Rs 1.9 billion. Without this additional tax, HBL''s PAT would have been Rs 5.1 billion, 9 percent higher than for Q1 2018.
HBL''s core domestic business continues to strengthen, with all key business drivers on a positive trajectory. Total domestic deposits increased by 2 percent to Rs 1.9 trillion and our leading market share increased further, to 14.3 percent. The Bank added Rs 38 billion to domestic deposits with healthy growth across all deposit categories and had strong CA and CASA ratios of 37.4 percent and 85.1 percent respectively, as at March''2019. Even more impressively, HBL''s average current accounts grew by Rs 66 billion, a growth of 11 percent compared to the first quarter of 2018. HBL''s total advances increased by 1.0 percent over last year to Rs 1.1 trillion while its ADR was 54 percent.
Strong growth in average domestic deposits (growth of Rs 120 billion over Q1''18) along with continued strong performance of domestic average advances (growth of nearly Rs 200 billion over Q1''18) and improvement of Net Interest Margin has contributed to domestic interest income increasing by 17 percent over Q1''18. With the rebuilding of our international business, the Bank''s net interest income increased by 19 percent over the same period last year. Domestic fees grew by 17 percent YoY, while the total non-fund income of the bank registered a growth of 22 percent over the same period last year.
Q1 2019 accelerated the business momentum of 2018. This business momentum was underpinned by the launch of technology backed financial products, upgrading compliance & control frameworks, effective governance structures and our resolve to do what is "right" and in doing so, aligning ourselves with international best practice in most spheres of our work.
As the largest bank in Pakistan, HBL continued to cement its position as the leading Digital Bank in Pakistan, in the way it conducts business and serves its consumer and corporate customers. HBL plans to shape the future through a shift towards a Technology company with a banking license. The launch of ''HBL INFINITY'' is yet another Digital initiative where we have expanded our digital product suite to create ease for our Corporate customers. HBL INFITNITY is Pakistan''s first innovative online platform that provides a trading experience through real-time FX pricing and execution. It provides HBL customers a more efficient and frictionless digital solution for their trading needs, while adhering to the SBP guidelines on Foreign Exchange.
Moreover, HBL is also the first bank in Pakistan to have CHIP & PIN functionality enabled across all our new credit and debit cards and acquiring network. The Chip (EMV) cards are more secure as they are more difficult to clone/copy, therefore reducing counterfeit fraud, while providing convenience to customers in the use of HBL cards.
Customer Data protection is something that HBL is keenly aware of as it marches towards a digital future. The completion of SWIFT CSP (Customer Security Program) to enhance the SWIFT security footprint, is an important initiative to secure electronic transactions undertaken by HBL for our clients.
HBL regards customers as their single most important stakeholders and an ever improving customer service is the true barometer of our business health. The Bank has adopted self-assessment tools that are positively impacting our ability to deliver Fair Treatment to Consumers (FTC).
HBL''s Business Transform-ation work streams entered into their final stages in Q1 2019. The Bank''s business processes are now more streamlined than ever and scalable to meet enhanced customer service demands. The Bank is now closer to its new business norm of conducting 1st class business in a 1st class way. Moreover, HBL was recognized as Pakistan''s first ISO certified bank, a global endorsement of HBL''s ability to handle various natures of disasters/interruptions in a well-structured manner through a strong Business continuity programme (BCP) being in place.
As the largest executor of CPEC related financing, our financial commitment to this transformative economic initiative is without par. Underscoring HBL''s expertise, Pakistan''s first Panda Bond mandate was awarded to a consortium led by HBL and comprising China International Capital Corporation Limited (CICC), China Development Bank and Citigroup Global Markets Asia Limited.
HBL continues to support projects that not only add to the economic and commercial strength of the nation but also have a direct contribution to poverty alleviation in the country. HBL played the lead financial role both in the Thar mining & power and the Matiari-Lahore transmission line projects which is an indication of HBL''s resolve in the socio-economic uplift of Pakistan.
During Q1 2019, HBL continued to be recognized for its superior brand, products and services, as well as for its ability to execute landmark deals. HBL won 2019 Asiamoney Awards for Best Domestic Bank, Best Corporate & Investment Bank and Best Bank for CSR. HBL also won 2019 Global Banking & Finance Awards for the Best Investment Bank Pakistan and Best Sukuk Deal Pakistan. The Asian Banker declared HBL as Best Retail Bank in Pakistan.
HBL''s title sponsorship of the 4th HBLPSL highlights the Bank''s efforts towards the development of youth and the discovery of talent for Pakistan. This year, we also engaged the overseas Pakistanis in UAE and gave over 1,000 workers an opportunity to witness the exciting games of cricket, free of charge.
The business momentum and accomplishments of Q1 2019 are strong evidence that we remain focused for balance of 2019, and beyond, in our commitment towards our customers, shareholders and communities at large to take the HBL franchise to the next level.-PR
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