LAHORE - Habib Bank Limited (HBL) has announced its 1Q2011 results on Friday, posting unconsolidated earnings of Rs4.7b as against earnings of Rs3.6b in 1Q2010 an increase of 30 percent. As expected, the bank did not announce any payout with the result. Net Interest Income (NII) rose by 23 percentYoY to Rs13.0bn, as KIBOR remained high by 140bps on a YoY basis. Non Interest Income too rose by 17 percent. However, total provisioning was higher by 65 percent at Rs2.3 billion. Experts said that in line with expectations the bank has posted PAT of Rs5b translating into an EPS of R4s.54 as against PAT of Rs3.82b [EPS of Rs3.46] in the same period last year. The growth in bottom line in 1QCY11 was mainly driven by increase in net interest income and non interest income which rose by 23 percent and 13 percent respectively. On the other hand, interest expense of the bank rose by 7 percent to PKR9.26bn and the bank booked a provision of PKR2.29bn in 1QCY11 as against a provision of PKR1.45bn in 1QCY10. This impressive earnings growth primarily driven by higher NII growth which stood at Rs13b, up 23 percent amid improved banking spreads. However, 64 percent rise in provisions to Rs2.3b slightly diluted the benefit from topline growth. Moreover, 10 percent jump in operating expenses to Rs6.5b some what compensated by 19 percent rise in non interest income of Rs3.1b.