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February 15, 2020

Bank Alfalah’s full-year profit increases 18 percent


February 15, 2020

KARACHI: Bank Alfalah Limited on Friday said its profit increased 18 percent to Rs13.031 billion for the year ended December 31, 2019, compared to Rs10.991 billion earned last year.

The bank in a statement said it translated into an EPS (earning per share) of Rs7.35 for the full-year 2019 against an EPS of Rs6.14 a year earlier.

Bank Alfalah also announced a final cash dividend of Rs2/share for the period, which was equivalent to 20 percent, in addition to an already paid interim cash dividend of Rs2/share, equivalent to 20 percent.

It said the bank posted a net interest income of Rs44.9 billion, improving 41 percent year-on-year, while it settled down at Rs11.6 billion during 4Q (fourth quarter), registering a quarter-on-quarter decline of 1 percent.

Arif Habib Limited, a brokerage, in a report said, “NFI (non-funded income) of the bank declined 3 percent year-on-year during CY19 due to drastically lower capital gains (-91 percent year-on-year)”. “The brokerage added that ex-capital gains NFI went up 5 percent year-on-year.” The bank booked a heavy capital gain in 4Q (most likely on equities) worth Rs521 million, while income from forex/derivatives was up 25 percent year-on-year and 35 percent quarter-on-quarter, the Arif Habib report said.

Provisioning expenses for the bank settled at Rs3 billion for CY19 vis-à-vis reversals of Rs16 million SPLY. We view that the bank’s high exposure to consumer segment is the likely culprit behind hefty provisioning charges, brokerage house added.

NML posts Rs4.750bln profit for half-year

Nishat Mills Limited (NML) posted a profit of Rs4.750 billion for the six-month period ended December 31, 2019, translating into EPS (earning per share) of Rs10.03, a statement said.

The company said it had earned Rs4.742 billion with an EPS of Rs10.84 in the corresponding period of year 2018. Nishat Mills didn’t announce any interim cash dividend.

The company said its net sales for 1HFY20 settled at Rs3.286 billion (up by 7 percent year-on-year) attributable to the rupee depreciation to the tune of 15 percent year-on-year against the dollar and increase in prices of value-added products.

Arif Habib Limited in a report said, “During 2QFY20, company’s net sales increased 6 percent year-on-year and 6 percent quarter-on-quarter to Rs16,935 million. Despite currency devaluation, the topline witnessed a meagre growth due to global economic slowdown that resulted in a lower export demand”.

Furthermore, textile manufacturer’s gross margins during 2QFY20 sank by 72bps (basis points) year-on-year and 247bps quarter-on-quarter due to increase in local cotton prices by 4 percent year-on-year and 9 percent quarter-on-quarter to Rs8,964/maund (40kg) compared to Rs8,650/maund in 2QFY19 and Rs8,200/maund in 1QFY20, respectively, the brokerage added.

Lotte Chemical full-year profit rises 25 percent

Lotte Chemical Limited on Friday reported its profit swelled 25 percent to Rs5.542 billion for the full-year 2019, compared to Rs4.431 billion, incurred in 2018.

The chemical-maker, in a communication to the Pakistan Stock Exchange, said the profit for the period under review corresponds to an EPS (earning per share) of Rs3.66, while the EPS for the profit earned in 2018 was Rs2.93. No interim cash dividend was declared for the period.

Arif Habib Limited in a report said, “During 4QCY19, [company’s] net sales went down 15 percent year-on-year to Rs1.292 billion, majorly owing to lower volumetric sales and lower PTA (purified terephthalic acid) prices (-31 percent year-on-year), we view; however, rupee witnessed a depreciation of 14 percent year-on-year during the period”.

Gross profit margins for the company clocked in at 7.9 percent during 4QCY19, declining 266bps on the back of 34 percent year-on-year fall in international PTA margins, the brokerage added.

Soneri Bank’s CY2019 profit up 6.86 percent

Soneri Bank Limited on Friday said its after tax profit for the year 2019 increased 6.86 percent to Rs1.906 billion, compared to Rs1.784 billion, earned in the previous calendar year.

“These results have consequently improved the bank’s EPS to Rs1.7289 per share in 2019 from Rs1.6179 per share in 2018,” a statement said, adding the bank had also announced a cash dividend of Rs1/share (10 percent) for the period under review .

The bank said its net interest income for the year was reported at Rs7.926 billion, improving 14 percent year-on-year, primarily due to improved volumes as well as spreads.

It said its non-interest income ended lower than the prior period, due to the impact of losses incurred on the capital markets portfolio, while fee and commission earnings, dividend income and foreign exchange income all improved substantially by 9.89 percent, 28.30 percent and 15.46 percent respectively.

“Growth in expenses was kept restricted at 10.16 percent, as compared to the prior year, with non-markup expenses reported at Rs8.129 billion for the year 2019.”

The bank said its net advances portfolio grew 9.88 percent to Rs 204.901 billion over the year, while nonperforming loans decreased 4 percent from Rs11.357 billion on December 31, 2018 to Rs10.903 billion on December 31, 2019.

“As a result, the bank’s infection ratio has improved from 5.83 percent on December 31, 2018 to 5.13 percent on December 31, 2019, moreover, the specific provision coverage ended at 69.46 percent on December 31, 2019,” the statement said. Net investments witnessed a significant volumetric increase of Rs. 30,411 million or 20.74 percent from the year-end balance of Rs. 146,645 million, ended at Rs. 177,056 million as at 31 December 2019.

Deposits also registered a healthy growth of Rs. 39,704 million or 15.13 percent over the year, and were reported at Rs. 302,083 million as at 31 December 2019.

The Bank remains adequately capitalized, with CAR of 15.79 percent at year end.