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UBL profits rise 23pc in Q2

By our correspondents
July 27, 2016

KARACHI: The United Bank Limited on Tuesday reported a 23 percent increase in its second quarter net profit, amid an increase in the net mark up earned.

In its consolidated condensed interim profit and loss statement for the quarter ended June 30, 2016, issued to the Pakistan Stock Exchange, the company reported a net profit of Rs7.03 billion as compared to Rs5.71 billion during the same period of the last year.

The company also announced interim cash dividend of Rs3/share.

Earnings per share (EPS) came in at Rs5.68 as compared to Rs4.46 last year. The results were above market expectations.

The company said its total interest earned revenue remained higher to Rs27.09 billion as compared to Rs24.28 billion.  However, interest expensed also remained higher to Rs10.82 billion as compared to Rs9.62 billion.

Thus, net interest income (NII) was recorded at Rs16.27 billion as against Rs14.66 billion.

Jehanzaib Zafar, an analyst at BMA Capital, said NII comes likely on the back of robust book growth and increase in private sector credit off-take. The NII after provisions, however, was down 4 percent year on year on account of heavy provisioning expenses realized (Rs1.8 billion).

Net mark-up income after provisions remained at Rs16.54 billion, up 23.5 percent against Rs13.39 billion recorded during the same period a year ago. 

Total non-mark-up income of the bank also increased to Rs22.64 billion as compared to Rs19.87 billion in the same quarter last year.

Umair Naseer, analyst at Topline Securities, said UBL booked provisioning reversal against Non-performing loans (NPLs) to the tune of Rs846 million in second quarter 2016 as against provisioning of Rs1.2 billion in same period last year, which was contrary to expectations. Consequently, the bank booked total provision reversal of Rs275 million as against provisioning of Rs1.2 billion last year.

 

Honda Atlas profits down 3.2 percent

Honda Atlas Cars (Pakistan) Limited (HCAR) on Tuesday announced a 3.2 percent decline in the first quarter profits amid a fall in the sales.

In its financial results issued to the Pakistan Stock Exchange (PSX), the company reported a net profit of Rs1.05 billion for the first quarter ended June 30, down against Rs1.08 billion the previous year.  The company posted earnings per share (EPS) of Rs7.36 as compared to Rs7.60 in the same period of the last year.  During the quarter, net sales of HCAR decreased 7.3 percent to Rs10.53 billion as compared to the same period of the last year’s net sales of Rs11.36 billion. Cost of sales remained at Rs8.91 billion against Rs9.56 billion last year.

HCAR posted a gross profit of Rs1.61 billion as compared to Rs1.80 billion during the same period of the last year.

Other income of the company rose to Rs127.61 million as compared to Rs88.46 million in the previous year.  The sales declined as its most popular car in Pakistan, Honda Civic, was not available in the market and buyers were waiting for the arrival of the new car, which arrived last week.

The latest model of Honda Civic is available in three variants, two with engine capacity of 1.8 liters priced at Rs2.3 million and Rs2.5 million, respectively, and a 1.5 litre Turbo one priced at Rs3 million.

Analyst Hamza Raza at Topline Securities said the result was above consensus, mainly due to a lower effective tax rate of 26 percent.  HCAR paid taxes of Rs362.13 million, down 32 percent to last year’s Rs533.20 million.

 

FFBL posts losses of Rs621 million

Fauji Fertilizer Bin Qasim Limited (FFBL) posted a loss of Rs621 million during the quarter because of decline in sales and an increase in the cost of business.

In its condensed interim consolidated profit and loss statement sent to the Pakistan Stock Exchange on Tuesday, the company announced a loss of Rs621.26 million, a decline of 153 percent as against the profit of Rs1.18 billion during the corresponding period of 2015.

Loss per share (EPS) was posted at 67 paisas against the earnings per share of Rs1.26 during the quarter ended June 30, 2015.

A decline in the sales and increase in the cost of production hit hard income of the company during this period.

During the period under discussion review, net sales of FFBL fell down 39 percent to Rs7.45 billion as compared to Rs12.19 billion in the same quarter a year ago. However, an increase in the cost of sales to Rs7.09 billion damaged the gains. Thus, the company posted a gross profit of Rs359.85 million against profits of Rs2.19 billion in the same quarter last year.

Administrative and other expenses transferred the profit into losses, as these expenses increased to Rs939.53 million from Rs863.91 million.  A huge increase in the other income filled up some gap of losses, as it increased by almost 121 percent to Rs1.40 billion from Rs635.42 million during the same quarter of the last year.