Billion in 2021, representing a 17% increase over 2020. In 2021, profit after tax jumped to Rs. 35.5 billion, the highest level ever, and earnings per share rose from Rs. 21.06 in 2020 to Rs. 23.88 in 2021. A final dividend of Rs. 2.25 per share was issued by the bank (22.5 percent ).
With year-end footings of Rs. 4.3 trillion, a 12 percent increase over Dec’20, HBL became the first bank to have a Rs. 4 trillion balance sheet. Domestic current deposits surpassed Rs. 1 trillion, while total domestic deposits surpassed Rs. 3 trillion, boosting market share to 14.14 percent. With a turnaround in the international businesses, HBL’s total deposits increased by 19% to Rs. 3.4 trillion.
Advances increased by 23 percent to Rs. 1.5 trillion, with double-digit increases across all lending divisions. HBL’s dominance in the Consumer market was bolstered even more when the portfolio surpassed the milestone of Rs. 100 billion. Agriculture loan reached an all-time high of Rs. 40 billion because of HBL’s emphasis on key sectors. Despite the rapid advancements, the Ban continues to exist.
HBL set a new revenue record of Rs. 168 billion in 2021, thanks to a Rs. 450 billion increase in average balance sheet and a strong increase in non-fund income. The Bank’s net interest income surged by nearly 20% to Rs. 131 billion, while non-fund revenue jumped by nearly 20% to Rs. 36 billion, thanks to a fantastic 35 percent gain in fees and commissions, which increased to Rs. 25 billion. While the price hike was widespread, the flagship cards and consumer business were the worst hit.
The Bank’s total costs stayed under control, with just a 2% increase. HBL was able to reduce its cost to income ratio (excluding capital gains) from 61.2 percent to 57.5 percent as a result of increased revenue and more efficient operations. Throughout the epidemic, asset quality was continuously monitored.
“HBL’s 2021 results, supported by customer centricity, were driven by significant organic growth,” remarked Muhammad Aurangzeb, President & CEO – HBL, of the bank’s performance. The Bank’s leadership position across all client categories was further solidified by exceptional performance across all business areas and activity drivers. HBL has continued to boost commercial and public sector loans, demonstrating its commitment to supporting government objectives for economic development. HBL continues to offer cutting-edge financial products and services to clients whose banking demands are expanding outside traditional channels. Our clients’ faith and confidence in us is a testament to the success of our business approach.”
Credit cards and debit cards are all types of cards that can be acquired. In 2021, auto financing expanded by 45 percent, putting it in first place in the sector. Clients preferred HBL Cards, as evidenced by a 63 percent increase in credit card spending from Rs. 69 billion to Rs. 113 billion. With 6.2 million cards in circulation and a market share of 21%, HBL’s debit card remains the industry leader. Spending climbed by 64% year over year, with e-commerce spending increasing by 81 percent. The Bank’s SME segment grew by 17% in 2021 i.e., from Rs. 63.0 billion in 2020 to Rs. 74.0 billion in 2021. The Bank’s focus on supporting trade transactions of retail clients led to a YOY growth of 20% in trade volume during 2021.
HBL has nearly 3.5 million female customers, including 750,000 through its Nisa women’s market programme. In 2021, the initiative added approximately 110,000 new accounts, totaling Rs. 16 billion in deposits. With USD 0.5 billion poured into the nation and a market-leading share of 20% of RDA accounts, HBL is one of the largest donors to the Roshan Digital Account (RDA) project. HBL Prestige caters to the special demands of high-net-worth clientele, with 24 Prestige touchpoints by the end of 2021. The number of Islamic Banking branches in Pakistan has grown to 260, making it the fourth biggest in the country.
In 2021, HBL increased in-kind funding and expanded its farm-to-processor pilots to about 18,000 acres. The net income of small leasehold farmers has doubled. With a market share of over 34% among commercial banks, HBL is the industry leader in farmer finance. HBL increased its farm lending to a new high of Rs. 40 billion, re-entered the dairy industry with Rs. 1.5 billion in loans, and distributed Rs. 1 billion to customers. With a Rs. 400 million approval in 2021, HBL became the first bank to sponsor an Electronic Warehouse Receipt.
With throughput increasing by 58 percent to approximately Rs. 8 trillion, HBL maintained its dominance in cash handling. HBL was named Asia Banking & Finance Best Domestic Cash Management Bank, as well as first in Asiamoney’s Cash Management Poll 2021 for Pakistan Market Leader and Best Service. Both prizes were given out based on customer voting, demonstrating HBL’s growing client-centric strategy. With 29 million transactions and Rs. 3.4 trillion in volume completed through HBL Pay Business Banking, digital payments have more than quadrupled. HBL executed ground-breaking investment banking agreements across the board in 2021, including co-managing the first-ever USD 500 million Green Eurobond for a significant public utility. HBL partnered with the CDC Group, UK on financing a 100MW solar power project; in 2021 HBL disbursed over Rs. 5.5 billion to encourage and enhance the use of sustainable energy for business needs. To reduce the impact of the Bank’s own operations on the environment, solar panels were installed at several premises leading to a 220 metric ton reduction in HBL’s carbon footprint.
Even over-the-counter transactions have been overtaken by HBL Mobile and Internet Banking transactions. Through cutting-edge mobile and internet banking systems, HBL’s tech-celeration enables 2.5+ million clients in Pakistan and throughout the world to unleash immense value for their business and personal requirements. HBL Pay Checkout, an online payment gateway solution for ecommerce companies, had a 31 percent increase in users year over year. More transactions were processed through HBL as a result of these additional merchants, with an increase of 85 percent since 2002.
The Bank’s branchless banking platform, Konnect by HBL, quadrupled transactions to 84 million in 2021, with volumes exceeding Rs. 846 billion. A concentrated strategy resulted in a 30% growth in overall account portfolio, from 5.4 million to 7.1 million, allowing unbanked areas to easily access HBL. In addition, Konnect enhanced its relationship with the Punjab and KPK Agri ministries to automate the government’s farmer subsidy payments, disbursing Rs. 11 billion to over 1 million farmers. In the meanwhile, 790,000 Konnect accounts have been created. HBL was one of the first few banks chosen to become part of the pilot project run under the National Micro-Payment Gateway – RAAST.
In 2021, HBL Treasury & Global Markets contributed significantly to the Bank’s bottom line, with all business lines operating well. HBL Infinity®, the Bank’s one-of-a-kind online B2B FX platform, received an update. HBL became the first Pakistani bank to open a branch in Beijing, making it the sole Pakistani bank with a presence in the Chinese capital. Due to substantial volume growth, HBL’s market share in home remittances climbed from 8.2 percent in 2020 to 10% in 2021.
HBL extended its partnership with PCB for another four years, marking the tenth anniversary of the HBL PSL since its establishment in 2016, and highlighting HBL’s commitment to youth development and talent identification in Pakistan.
HBL has received several honours from both international and local platforms, including Euromoney Awards’ Best Bank in Pakistan, Pakistan’s Best Bank 2021, and Pakistan Banking Awards’ Best Bank for Small and Medium Businesses 2021. It earned eight prizes from the Global Diversity & Inclusion Benchmarks (GDIB) 2021 and The Asset Triple A Sustainable Capital Markets Country & Regional Awards 2021, including the Best Green Bond Award and Best Structured Finance Deal for Pakistan.