Habib Bank Limited posted net profit of Rs 20.49 billion (EPS: Rs 13.97) in 9MCY14 as against Rs 15.49 billion (EPS: Rs 10.56) in 9MCY13, an increase of 32.3%. This growth is primarily emanated from 23% higher net interest income, 39% lower provisions and 31% rise in non-interest income.

Earnings rise by 15% YoY in 3QCY14
In 3QCY14 alone, bank reported after tax profit of Rs 6.95 billion (EPS: Rs 4.74) in 3QCY14 against Rs 6.06 billion (EPS: Rs 4.13) in 3QCY13, up by 15% YoY. Better earnings were witnessed due to 24.4% YoY rise in net interest income and 8% swell in non interest income while rise in provisions restrict profitability growth. Moreover, company also announced cash payout of Rs 2.25/share, taking the total cash dividend of Rs 6.5/share for 9MCY14.
Investment in PIBs spurs NII growth
Net interest income (NII) increase by 23% to Rs 48.28 billion against Rs 39.27 billion in 9MCY13 due to growth in the loan book, improvement in CASA ratio and repositioned towards longer tenors i.e. PIBs. Interest income surge by 11% to Rs 99.47 compared to Rs 89.40 billion in 9MCY13 mainly due to investments in PIBs. However, Interest expense marginally increase by 2% to Rs 51.19 billion in 9MCY14 against Rs 50.12 billion in 9MCY13 owing to increase in saving rate.