Allied Bank’s profit falls 19 percent to Rs3bln in January-March

KARACHI: Allied Bank Limited’s profit fell 19 percent year-on-year to Rs3 billion for the quarter ended March 31, 2019, translating into earnings per share (EPS) of Rs2.7, a bourse filing said on Thursday.

Allied Bank earned Rs3.8 billion with EPS of Rs3.36 in the corresponding quarter a year earlier, the bank said in a filing with the Pakistan Stock Exchange (PSX).

The bank announced an interim cash dividend of Rs2/share.

Allied Bank’s net interest income increased to Rs9.5 billion in the quarter under review from Rs8 billion in the corresponding period a year earlier.

Taurus Securities said net mark-up income rose due to growing exposure to short-term bills, “enabling it (Allied Bank) to offset the surge in interest expenses alongside due to rate hikes”.

The bank’s interest expenses almost doubled to Rs14.7 billion from Rs7.6 billion. Non-interest income fell to Rs2.7 billion in the January-March quarter from Rs3.5 billion in the same three months a year ago “due to significantly lower capital gains – a consequence of PIB (Pakistan Investment Bonds) maturities and underperforming equity markets,” the brokerage added.

Analyst Faizan Kamran at Arif Habib Limited said effective tax rate came at 52 percent during the quarter compared to 38 percent a year earlier owing to additional super tax charge.

Meezan Bank’s quarterly profit increases 32pc

Meezan Bank Limited’s profit increased 32 percent year-on-year to Rs3.1 billion for the quarter ended March 31, 2019, translating into EPS of Rs2.59.

Meezan Bank earned Rs2.3 billion with EPS of Rs1.9 in the corresponding quarter a year earlier. The bank announced an interim cash dividend of Re1/share for the quarter.

Analyst Nabeel Khursheed at Topline Securities said the bank’s profit increased due to reversal in provisions and foreign exchange gains. Net provisions and write-offs amounted to Rs99.9 million in Q1CY2019 compared to Rs130.2 million in Q1CY2018. Foreign exchange income rose to Rs417.1 million from Rs373 million.

Meezan Bank’s net spread earned rose to Rs9.1 billion in the January-March quarter from Rs5.8 billion in the corresponding period a year earlier. Other expenses, during the quarter, were up 24 percent year-on-year to Rs5.6 billion due to 23 percent increase in operating expenses.

“We attribute significant rise in net spread earned to the non-applicability of minimum deposit rate on Islamic banks, which resulted in higher sensitivity of income to the tightening monetary policy,” Khursheed said. “Marked risks for the bank include deterioration in economic indicators, uptick in provisioning charge, lack of investment avenues and lower than expected rate hike in policy rate.”

Bank AL Habib earns Rs2 billion in Q1

Bank AL Habib’s profit remained almost flat at Rs2 billion for the three months ended March 31, 2019 compared to the corresponding period a year earlier, a filing with the PSX said.

EPS clocked in at Rs1.85 in the January-March quarter compared to Rs1.86 in the corresponding period a year earlier. The bank didn’t announce any cash payout for the period.

Net interest income increased to Rs9.8 billion in Q1CY2019 from Rs7 billion in Q1CY2018. Non-interest income increased to Rs1.8 billion from Rs1.4 billion.

The bank’s provisions of Rs725 million during the quarter was two times the provisions of the previous calendar year, Taurus Securities said. The provisions amounted to Rs294 million in the corresponding quarter a year earlier.

Bestway Cement’s profit rises to Rs9.5bln

Bestway Cement’s profit increased to Rs9.5 billion in the nine months period ended March 31, 2019 from Rs8.7 billion in the corresponding period a year earlier.

EPS clocked in at Rs16 in the July-March period compared to Rs14.61 in the corresponding period a year earlier. The company announced an interim cash dividend of Rs3/share for the third quarter.

Bestway Cement’s sales revenue increased to Rs40.7 billion in the nine months from Rs40.2 billion in the corresponding period a year earlier. Finance costs escalated to Rs1.1 billion compared to Rs437.5 million in the corresponding period a year earlier.

Maple Leaf’s profit slides 44pc in 9 months

Maple Leaf Cement Factory Limited’s profit slid 44 percent year-on-year to Rs1.8 billion for the nine months ended March 31, 2019, translating into EPS of Rs3.19.

Maple Leaf Cement earned Rs3.3 billion with EPS of Rs6.01 in the corresponding period a year earlier.

The cement maker’s profit fell to Rs557.9 million in Q3FY2019 from Rs1.1 billion in the corresponding period a year earlier.

The company’s sales dropped to Rs6 billion in January-March from Rs7 billion in the comparable period due to fall in the dispatches by 31 percent year-on-year and decrease in the margins, Taurus Securities said.