{"id":7241,"date":"2025-01-31T15:33:37","date_gmt":"2025-01-31T10:33:37","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=7241"},"modified":"2025-02-17T17:07:20","modified_gmt":"2025-02-17T12:07:20","slug":"bank-al-habibs-bahl-annual-result-and-dividend-impresses-investors","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/bank-al-habibs-bahl-annual-result-and-dividend-impresses-investors\/","title":{"rendered":"Bank Al Habib&#8217;s (BAHL) annual result and dividend impresses Investors"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u2705 <strong>Profit increased by 13% compared to last year<\/strong><\/li>\n\n\n\n<li>\u2705 <strong>Dividend payout was strong at PKR 6.5 per share<\/strong><\/li>\n\n\n\n<li>\u2705 <strong>Interest income remained stable, while fee income saw good growth<\/strong><\/li>\n\n\n\n<li>\u2705 <strong>Expenses were slightly higher, and tax payments increased<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Bank Al Habib <a href=\"https:\/\/ksestocks.com\/blog\/tag\/bahl\/\" target=\"_blank\" rel=\"noopener\" title=\"BAHL\">(<strong>BAHL<\/strong><\/a>) recently announced its financial results for the last quarter of 2024. The company reported an <strong>EPS of Rs. 6.8 per share<\/strong> for the quarter while giving a <strong>Rs. 6.5 dividend<\/strong> to shareholders. Let\u2019s break down what these numbers mean in a simple way.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Earnings<\/h2>\n\n\n\n<p>The bank reported a profit of <strong>PKR 6.8 per share<\/strong>, which is <strong>15.7% higher<\/strong> than the same time last year. However, compared to the previous quarter, profit fell by <strong>40%<\/strong>. This decline is normal in banking, as earnings can fluctuate based on different financial conditions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Dividend: A Big Surprise for Investors<\/h2>\n\n\n\n<p>The biggest news for investors is the <strong>PKR 6.5 per share<\/strong> cash dividend. This is higher than what analysts expected. For the full year, BAHL has now paid a total dividend of <strong>PKR 17 per share<\/strong>, which is great for shareholders looking for returns on their investments. At the current price, this corresponds to a dividend yield of just below 12%.<\/p>\n\n\n\n<p>Banks generally make money in two main ways:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Interest Income<\/strong> \u2013 The money they earn from lending money to customers.<\/li>\n\n\n\n<li><strong>Non-Interest Income<\/strong> \u2013 Other sources, like service fees or investments.<\/li>\n<\/ol>\n\n\n\n<p>Here\u2019s how these two segments performed for BAHL:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Interest Income<\/strong> remained the same compared to last year but dropped by <strong>7%<\/strong> from the previous quarter. This happened because the bank lent money at lower rates to meet government targets for ADR tax. Eventually, the ADR tax was abolished but the measures taken to avoid this tax resulted in a slight decrease in interest income.<\/li>\n\n\n\n<li><strong>Non-interest income<\/strong> increased by <strong>3% year-on-year<\/strong> and <strong>11% from the last quarter<\/strong>, helped by a <strong>64% jump in fee income<\/strong>. The bank also booked Rs. 376 million in capital gains during the quarter.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Costs and Taxes<\/h2>\n\n\n\n<p>Bank expenses went up by <strong>2% year-on-year<\/strong> and <strong>7% from the last quarter<\/strong>. The bank also set aside <strong>PKR 3 billion<\/strong> for possible loan losses, which is lower than before. Taxes were higher, bringing the <strong>effective tax rate to 65%<\/strong>.<\/p>\n\n\n\n<p>Bank Al Habib has shown <strong>steady performance<\/strong> despite some challenges. The strong <strong>dividend payout<\/strong> makes it an attractive choice for long-term investors. <\/p>\n\n\n\n<p>For those investing in banking stocks, keeping an eye on future interest rates and economic policies will be important in determining BAHL\u2019s growth potential.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are the analysts saying?<\/h2>\n\n\n\n<p>Bank al Habib (BAHL) is currently covered by <strong>7<\/strong> different analysts in Pakistan. According to our database, JS Global has a target price of <strong>Rs. 200<\/strong> on the stock while the lowest target price belongs to Pearl Securities at <strong>Rs. 158<\/strong>.<\/p>\n\n\n\n<p>The average price target of Rs. 174 corresponds to a <strong>22%<\/strong> upside from the current price of Rs. 143.<\/p>\n\n\n\n<p>Here are the target prices of the different research firms that cover the stock.<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><thead><tr><th class=\"has-text-align-center\" data-align=\"center\">Research Firm<\/th><th class=\"has-text-align-center\" data-align=\"center\">Target Price<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\">AKD<\/td><td class=\"has-text-align-center\" data-align=\"center\">173<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">IGI<\/td><td class=\"has-text-align-center\" data-align=\"center\">168<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">JS<\/td><td class=\"has-text-align-center\" data-align=\"center\">200<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Intermarket<\/td><td class=\"has-text-align-center\" data-align=\"center\">160<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Taurus<\/td><td class=\"has-text-align-center\" data-align=\"center\">191<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Foundation Sec.<\/td><td class=\"has-text-align-center\" data-align=\"center\">167<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Pearl Sec.<\/td><td class=\"has-text-align-center\" data-align=\"center\">158<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Bank Al Habib (BAHL) recently announced its financial results for the last quarter of 2024. Let\u2019s break down what these numbers mean in a simple way.<\/p>\n","protected":false},"author":9252,"featured_media":6465,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[138],"tags":[117],"class_list":["post-7241","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financials","tag-bahl"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/BAHL-STOCK-PSX.png",712,445,false],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/BAHL-STOCK-PSX.png",463,289,false],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/BAHL-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/BAHL-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/7241","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=7241"}],"version-history":[{"count":0,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/7241\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6465"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=7241"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=7241"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=7241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}