Bank AL Habib’s H1 profit grows 20.4 percent

KARACHI: Profit of Bank AL Habib (BAHL) grew 20.4 percent to Rs4.56 billion for the half year ended 30 June, 2017, translating into earnings per share (EPS) of Rs4.11, a bourse filing said on Wednesday. 

Bank AL Habib’s net income was recorded at Rs3.79 billion with EPS of Rs3.40 for the corresponding period last year, said a filing with the stock market.  Profit before tax is recorded at Rs7.67 billion during the period under review as against Rs6.84 billion with a growth of 12.1 percent. 

The bank, in a statement, said a significant achievement for the bank during the half year was an impressive increase in the financing portfolio, which increased 18.74 percent to Rs310.4 billion. Advance to deposits ratio of the bank now stands at 47.59 percent as compared to 44.75 percent in December 2016, it added.

“Bank AL Habib’s prudent financing strategies and sound risk management policies resulted in decrease of loan infection ratio to 1.78 percent at Jun-17 from 2.12 percent in Dec-16,” the bank said. “Coverage ratio of NPLs (non-performing loans) has also improved to 140.10 percent at Jun-17 from 136.95 percent in Dec-16.”

The bank continues to mobilise low cost deposits through strong relationship management and customer centric approach resulting in 11.67 percent growth in deposits, which increased to Rs652 billion at June-end from Rs584 billion in December 2016.

BAHL reported around 80 percent year-on-year growth in earnings in the second quarter ended June 2017, amid higher capital gains against Pakistan investment bonds during the quarter.

Non-interest expense of the bank increased 12 percent to Rs5.1 billion in 2Q2017. Provisioning expense for the bank stood at Rs331 million in 2Q2017 as against Rs452 million in 2Q2016.        

Faysal Bank’s profit falls 32pc in April-June

Profit of Faysal Bank Limited fell 32 percent year-on-year to Rs991.660 million in the second quarter ended June 30, translating into earning per share (EPS) of Re0.75, a bourse filing said on Wednesday. 

Net income was recorded at Rs1.460 billion with EPS of Rs1.11 for the same quarter a year earlier, said a notice to Pakistan Stock Exchange. 

Analyst Mustafa Mustansir at Taurus Securities Limited said the bank’s non mark-up income decreased 38 percent quarter-on-quarter (QoQ) owing to a 93 percent QoQ decline in capital gains, which hammered earnings.

“Super-tax dragged earnings down further, resulting in an effective tax rate of 65 percent for the quarter,” Mustansir added. Faysal Bank’s non-mark income sharply decreased 53 percent year-on-year to Rs1.237 billion in the April-June quarter.

Taxation, both current, prior years and deferred, increased 12 percent in the second quarter from Rs815.965 million in the same quarter a year earlier. The bank’s net income slightly increased 1.4 percent year-on-year to Rs2.859 billion for the first half ended June 30, translating into EPS of Rs2.17. Its profit amounted to Rs2.818 billion with EPS of Rs2.14 in the corresponding period a year ago. 

Faysal Bank’s interest income increased to Rs7.010 billion in the January-June period from Rs6.061 billion in the same period a year earlier.    Mustansir said the growth can be attributed to growth in advances.

Bestway’s annual profit rises

Net income of Bestway Cement Limited rose around 12 percent to Rs13.292 billion for the year ended June 30, 2017, translating into earnings per share (EPS) of Rs22.29, a bourse filing said on Wednesday. 

Bestway Cement’s profit was registered at Rs11.880 billion with EPS of Rs20.16 in the previous financial year, said a notice filed with the stock market. 

The cement maker also announced final cash dividend at Rs3 per share, equivalent to 30 percent. This was in addition to interim dividend already paid at Rs9 per share, equivalent to 90 percent. 

Bestway Cement’s revenue surged around 13 percent to Rs51.623 billion in FY2017, while cost of sales also increased 18 percent during the year under review from Rs24.573 billion in the previous year.