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April 25, 2019

HBL’s three-month profit falls 32 percent

Business

April 25, 2019

KARACHI: Habib Bank Limited (HBL) profit decreased 32 percent to Rs3.177 billion in the three-month period ended March 31, 2019, translating into earnings per share (EPS) of Rs2.08, a bourse filing said on Wednesday.

HBL earned Rs4.687 billion with EPS of Rs3.12 in the corresponding three-month period ended earlier. The company announced interim cash dividend for the first quarter ended March 31, 2019 at Rs1.25/share equivalent to 12.5 percent, a notice issued to the Pakistan Stock Exchange (PSX) said.

HBL settled at Rs23.4 billion for 1QCY19, rising 19 percent YoY, as 63 percent higher interest expense was offset by the 39 percent rise in mark-up income. Bank registered an uptick of 12 percent QoQ as well.

The company said that its core domestic business continues to strengthen, with all key business drivers on a positive trajectory. “Total domestic deposits increased by two percent to Rs1.9 trillion and our leading market share increased further, to 14.3 percent,” it added.

The Bank added Rs38 billion in domestic deposits with healthy growth across all deposit categories and had strong CA and CASA ratios of 37.4 percent and 85.1 percent, respectively, till March 2019. Also, HBL’s average current accounts grew by Rs66 billion, a growth of 11 percent compared to the first quarter of 2018. HBL’s total advances increased by 1.0 percent over last year to Rs1.1 trillion while its ADR was 54 percent, the statement said.

Analyst Faizan Kamran from Arif Haib Limited said, “Effective tax rate was set at 62 percent for Q1CY19 vis-à-vis 36 percent SPLY due to additional super tax being booked this quarter on CY17 earnings.” Analyst Nabeel Khursheed from Topline Securities marked some key risks for HBL, including delay in expected hike in interest rates, lower than expected advances growth, deterioration of Pakistan macros, and further penalties on international operations.

UBL quarterly profit up 46pc

United Bank Limited (UBL) profit increased 46 percent to Rs4.052 billion in the quarter ended March 31, 2019 translating into EPS of Rs3.94, a bourse filing said.

UBL earned Rs2.759 billion with EPS of Rs2.28 in the corresponding quarter ended earlier. The company announced interim cash dividend for the quarter ended March 31, 2019 at Rs2.5/share equivalent to 25 percent, the notice issued to the PSX said.

Net interest income (NII) of the bank settled at Rs15 billion during Q1CY19, rising five percent YoY / one percent QoQ.

Analyst Faizan Kamran from Arif Habib Limited said, “Effective tax rate was set at 51 percent during Q1CY19 compared to 39 percent SPLY owing to booking of additional super tax on CY17 earnings.”

Analyst Nabeel Khursheed from Topline Securities said key risks were limited NII growth owing to lower rate PIBs exposure, lower than expected advances growth, delay in hike in interest rates, and deterioration of macro indicators.

MCB profit up Rs5 billion

Muslim Commercial Bank (MCB) profit increased to Rs5 billion in the quarter ended March 31, 2019, translating into EPS of Rs4.21, a notice said.

MCB earned Rs4.711 billion with EPS of Rs3.97 in the corresponding quarter ended earlier. The company announced interim cash dividend for the quarter ended March 31, 2019 at Rs4/share equivalent to 40 percent, the notice added.

NII of the bank settled at Rs14.3 billion, depicting an impressive 26 percent YoY improvement with mark-up income increasing 55 percent YoY, while interest expense jumped by 98 percent YoY. On a sequential basis, the bank’s NII recorded a 12 percent jump QoQ.

The bank booked net reversals worth Rs448 million during Q1CY19 vis-à-vis Rs1.5 billion SPLY.

DG Khan Cement July-March profit falls 47 percent

DG Khan Cement Company Limited profit decreased 47 percent to Rs2.5 billion in the nine-month period ended March 31, 2019, translating into an EPS of Rs5.71, a bourse filing said.

The company earned Rs4.740 billion with EPS of Rs10.82 in the corresponding nine-month period during the previous fiscal. The company did not announce any interim cash dividend for the nine month period, the notice informed shareholders. Finance cost increased to Rs2.457 billion from Rs339 million in the 3rd quarter a year earlier. Analyst Tahir Abbas from Arif Habib Limited said, “DGKC booked a tax credit of Rs71 million in Q3FY19, vis-à-vis normalised taxation at 26 percent recognised in SPLY.”

FFBL quarterly profit declines Rs2.416bln

Fauji Fertilizer Bin Qasim Limited (FFBL) suffered losses of Rs2.416 billion during the quarter ended March 31, 2019, translating into EPS of Rs2.39, a bourse filing said.

FFBL lost Rs413 million with EPS of Rs0.26 in the previous quarter. The company has not announced any interim cash dividend for the quarter ended March 31, 2019, according to the notice.

Finance cost of the company jumped to Rs1.924 billion from Rs1.074 billion due to the increase in interest bearing debt along with higher interest rates.

Analyst Tahir Abbas from Arif Habib Limited said, “The company booked tax expense of Rs51 million as compared to tax credit of Rs201 million during Q1CY18.”

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