Habib Bank Ltd.'s net profit for 2017 plunged year over year, dragged down by payments made to New York regulators to settle a case involving the bank's noncompliance with local anti-money laundering and counterterrorist financing laws.
The Pakistan-based bank said its consolidated net profit attributable to equity holders for the year ended Dec. 31, 2017, plunged to 7.83 billion rupees, or 5.34 rupees per share, from 34.07 billion rupees, or 23.23 rupees per share, for the prior year.
The year-over-year decline was driven by settlement costs. The bank said it paid 23.72 billion rupees to the New York State Department of Financial Services to settle the case relating to its noncompliance with anti-money laundering and counterterrorist financing laws.
Meanwhile, net interest income rose to 83.07 billion rupees from 81.95 billion rupees. Fee, commission and brokerage income increased to 19.52 billion rupees from 19.03 billion rupees.
For the year ended Dec. 31, 2017, the bank reported reversal against advances of 49.6 million rupees, compared to provisions of 491.2 million rupees in the prior-year period. Net interest income after provisions rose to 83.18 billion rupees from 81.23 billion rupees.
The bank's administrative expenses jumped to 61.97 billion rupees from 54.79 billion rupees. Net other provisions surged to 496.7 million rupees from 174.2 million rupees.
The bank declared a final cash dividend of 1 rupee per share, down from 3.5 rupees per share for 2016. Including an interim dividend of 7 rupees per share, the bank's total dividend for the year totaled 8 rupees per share, down from 14 rupees per share for 2016.
As of March 16, US$1 was equivalent to 110.57 Pakistani rupees.