National Bank’s annual profit falls 13 percent

By Our Correspondent
February 23, 2019

KARACHI: National Bank of Pakistan’s (NBP) profit fell 13.1 percent to Rs20 billion for the year ended December 31, translating into earnings per share (EPS) of Rs9.41, a bourse filing said on Friday.

Advertisement

The bank earned Rs23.3 billion with EPS of Rs10.82 during the last year. NBP said the bank recognised significant increase in loan-loss and other provisions, which amounted to Rs 11.3 billion as against Rs1.2 billion in the prior year. “This is mainly due to default by a single borrower group which has been fully provided for,” it said in a statement.

The bank didn’t announce any cash dividend. Total revenue of the bank amounted to Rs96.9 billion, 13.6 percent higher than the previous year. While net interest/mark-up income increased 11.8 percent to Rs60.7 billion, a 16.7 percent growth was also achieved in non-interest / mark-up income, which stood at Rs36.2 billion.

Profit before provisions amounted to Rs 41 billion, 11.4 percent higher compared to the last year. The bank’s total assets stood at Rs2.8 trillion, depicting a 11.7 percent growth year-over-year. The bank’s gross loans and advances crossed the one trillion mark and increased Rs202.5 billion.

The bank’s deposits also crossed Rs2 trillion mark, as the same increased by Rs284.3 billion during the year. “For better liquidity and rate-risk management, the bank maintains a healthy portfolio of investment in low risk securities.”

OGDCL earns Rs56.7bln in half-year

Oil and Gas Development Company Limited (OGDCL) recorded a 55 percent surge in profit to Rs56.756 billion for the first half ended December 31, translating into EPS of Rs13.2.

OGDCL earned Rs36.671 billion with EPS of Rs8.53 in the corresponding period a year earlier.

The company announced cash dividend of Rs3/share, which was in addition to interim cash dividend of Rs2.75/share already paid.

Taurus Securities said earnings grew in the first half due to higher oil prices and lower operating costs. “Moreover, exploration costs also declined 39.1 percent year-on-year in the said period.”

The company’s revenue increased to Rs126.897 billion in the July-December period compared to Rs95.960 billion during the same period a year earlier.

OGDCL’s profit increased 52 percent to Rs30.021 billion for the quarter ended December 31, translating into EPS of Rs6.98. OGDC earned Rs19.662 billion with EPS of Rs4.57 in the corresponding quarter a year earlier.

The quarterly revenue clocked in at Rs65 billion, up 25 percent compared with the same period last year.

Analyst Aftab Awan from Sherman Securities said the increase in revenue was supported by 19 percent increase in average Arab light crude oil price and average rupee devaluation of 21 percent.

Other income increased by 118 percent to Rs7.7 billion during the quarter, mainly due to exchange gain of Rs3.6 billion booked during the quarter. Additionally, exploration cost went down 57 percent to Rs2.5 billion due to absence of dry wells, which supported the bottom-line.

Bank Alfalah’s yearly profit increases 27pc

Bank Alfalah recorded profit of Rs10.625 billion for the year ended 31 December, higher by 27 percent in comparison to 2017.

The bank’s EPS was Rs5.72 in 2018 compared with Rs4.61 in 2017.

Bank Alfalah announced final cash dividend of Rs1.5 for the year, which was in addition to interim cash dividend of Re1 already paid.

The bank said the performance was largely driven by growth in its core business operations with revenue growth of 9.8 percent and operating expenses reduction by 2.4 percent versus last year.

Net interest income grew nine percent or Rs2.615 billion, totaling Rs31.591 billion, as a result of earning asset growth and better spreads.

“The bank was able to overcome the pressure on net interest income due to the maturities of high yielding bonds and lagged re-pricing impact of asset book in rising interest rate scenario,” the bank said in a statement.

“The cost of deposits increased by 40 basis points as compared to corresponding period last year, despite the policy rate increase of 425 basis points over the course of the period.”

Bestway Cement earns Rs6.8bln in six months

Bestway Cement’s profit increased 11 percent to Rs6.880 billion for the half year ended December 31, translating into EPS of Rs11.54.

Bestway Cement earned Rs6.194 billion with EPS of Rs10.39 in the corresponding half year ended earlier. The company announced interim cash dividend of Rs3/share. The company’s revenue increased to Rs27.709 billion in the July-December period from Rs26.459 billion in the corresponding period a year earlier.

Advertisement