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Saturday November 27, 2021

NBP Q3 profit drops 31 percent on higher mark-up expenses

October 28, 2021

KARACHI: National Bank of Pakistan (NBP) on Wednesday reported a 31 percent fall in its third-quarter net profit, owing to an increase in the mark-up expensed.

In a statement to the Pakistan Stock Exchange, the bank reported a net profit of Rs7.55 billion for the quarter ended September 30, down from Rs11.05 billion the previous year.

The bank skipped any dividend for the quarter under review.

Earnings per share came in at Rs3.55, compared with Rs5.20 last year.

The bank said its revenue for the quarter fell to Rs58.53 billion, compared with Rs60.81 billion a year earlier.

The bank said its mark-up expensed increased to Rs33.51 billion from Rs31.44 billion that decreased the profits.

For the three quarters, the bank reported a profit of Rs24.64 billion, down from Rs26.18 billion a year earlier.

EPS for this period remained at Rs11.53 compared with Rs12.28 in the same period last year.

Analyst Sana Tawfik of Arif Habib Limited in her report said, “Quarterly decline in NII and higher provisioning suppressed overall earnings this quarter.”

MCB Q3 profit down 20 percent

MCB Bank Limited reported a 20 percent fall in its third-quarter net profit, owing to an increase in the mark-up expensed.

In a statement to the PSX, the company reported a net profit of Rs7.97 billion for the quarter ended September 30, down from Rs9.98 billion the previous year.

The company also announced an interim cash dividend of Rs4.5/share, which is in addition to already paid Rs9.5/share.

EPS came in at Rs6.73, compared with Rs8.42 last year.

The bank said its revenue for the quarter fell to Rs34.03 billion, compared with Rs34.10 billion a year earlier.

The bank’s mark-up expensed increased to Rs16.71 billion from Rs13.56 billion, increasing the gap between profits.

For the three quarters, the bank reported a profit of Rs22.85 billion, down from Rs23.40 billion a year earlier. EPS for this period remained at Rs19.29 compared with Rs19.75.

ABL Q3 profit inches up 4 percent

Allied Bank Limited (ABL) reported a four percent rise in its third-quarter net profit, owing to a reversal in provisions.

In a statement to the PSX, the bank reported a net profit of Rs4.32 billion for the quarter ended September 30, up from Rs4.15 billion the previous year.

The bank also announced an interim cash dividend of Rs2 a share, which is in addition to Rs4 already paid cash dividend. EPS came in at Rs3.78, compared with Rs3.63 last year. The bank said its revenue for the quarter rose to Rs31.36 billion, compared with Rs24.68 billion a year earlier.

The bank said its mark-up expensed increased to Rs19.70 billion from Rs12.39 billion. However, a reversal of Rs251.70 million against write-offs of Rs199.38 million last year helped to close financial results into profit increase.

For the nine months ended September 30, the bank reported a profit of Rs13.20 billion, up from Rs12.63 billion a year earlier. EPS for this period remained at Rs11.53 compared with Rs11.03.

BAHL profit declines 18 percent

Bank AL Habib Limited net profit declined 18 percent to Rs4.923 billion during the third-quarter ended September 30, 2021, with EPS of Rs4.43, a bourse filing said.

The bank earned Rs5.994 billion with EPS of Rs5.39 during Q3CY20.

The bank skipped paying any dividend this quarter.

Total assets of the bank reached to Rs1.86 trillion, an increase of 22.05 percent as compared to December 31, 2020.

Net loans and advances grew by 29.20 percent to reach Rs659.23 billion whilst the investments increased by 22.20 percent to reach Rs934.74 billion, leading to overall growth in the total assets. Due to the bank’s sound risk management practices and prudent financing strategy, the NPL ratio of the bank fell to 0.99 percent.

BAHL achieved a coverage ratio of 190.37 percent which reflects the prudent approach adopted towards non-performing loans.

Deposits increased 15.72 percent bringing the total deposits to Rs1.27 trillion as on September 30, 2021. Gross advances to deposit ratio stood at 52.80 percent.

FFC Q3 profit surges 39 percent

Fauji Fertilizer Company (FFC) net profit increased 39 percent to Rs6.452 billion during the quarter ended September 30, 2021, with EPS of Rs5.07, a bourse filing said.

The company earned Rs4.628 billion with EPS of Rs3.64 during the same quarter last year. FFC announced a cash dividend of Rs3.75/share in Q3CY21. This was in addition to dividend already paid at Rs6.10/share.

Analyst Muhammad Iqbal Jawaid of Arif Habib in his note said the company’s topline climbed by 20 percent YoY in Q3CY21, settling at Rs29.574 billion amid 22 percent YoY increase in urea sales, and 7 and 72 percent YoY rise in urea and DAP prices, respectively. Meanwhile, DAP sales declined 46 percent in Q3CY21.

On cumulative basis, net sales during 9MCY21 jumped 8 percent to Rs73.592 billion, owing to 2 percent and 56 percent YoY growth in urea and DAP prices, respectively.

Gross margins arrived at 37.8 percent (up 418bps YoY) in Q3CY21 given higher urea prices. During 9MCY21, gross margins settled at 37.2 percent compared to 33.9 percent in the same period last year.