ABL likely to an­nounce 26pc drop in 2Q earn­ings to­mor­row

The Pak Banker - - FRONT PAGE -

LA­HORE: Al­lied Bank Lim­ited (ABL) is likely to post sec­ond quar­ter earn­ings 2QCY15 EPS Rs2.54, down 26pc year on year ba­sis (YoY), ex­perts ob­served. "We have pro­jected the bank's 1HCY15 PAT at Rs 7.2 bil­lion, trans­lat­ing into EPS of Rs 5.86, flat com­pared to the cor­re­spond­ing pe­riod last year. 2QCY15 EPS is ex­pected to clock in at Rs 2.54, down 26% YoY. The bank is also ex­pected to an­nounce a cash pay­out of Rs 1.75/share tak­ing 1HCY15 div­i­dend to Rs 2.75/share," they said.

Al­lied Bank Lim­ited (ABL) is ex­pected to an­nounce its 2QCY15 fi­nan­cial re­sults on Au­gust 05, 2015. It was re­ported that Net in­ter­est in­come (NII) would re­main strong largely ow­ing to lagged as­set re-pric­ing of as­sets to­gether with yields locked in on PIB port­fo­lio of the bank. Li­a­bil­ity side in con­trast re-prices with im­me­di­ate ef­fect and would thus re­sult in no­table plunge in in­ter­est ex­pense. Over­all, net in­ter­est in­come (NII) would likely post 20% growth when com­pared to the same pe­riod last year.

"We have pro­jected net in­ter­est mar­gin (NIM) of the bank at 4.7%. Non-in­ter­est in­come, on the other hand, is ex­pected to re­main weak largely due to a high base im­pact as the bank posted sub­stan­tial other in­come dur­ing the cor­re­spond­ing pe­riod last year. The bank may how­ever rec­og­nize some pro­por­tion of its size­able un­re­al­ized cap­i­tal gains on PIB port­fo­lio which may lead to earn­ings sur­prise dur­ing the quar­ter. NPL pro­vi­sion­ing might dis­ap­point ABL's NPL pro­vi­sion­ing for the 1Q clocked in at Rs 728mn against a re­ver­sal of PKR37mn dur­ing 1QCY14. This was largely driven by sharp spike in NPLs due to delin­quency re­lated to Byco petroleum". It was said that the bank is also re­quired to pro­vide for the re­main­ing amount of the loan dur­ing 2QCY15 which is why we are an­tic­i­pat­ing a sub­stan­tial in­crease in NPL pro­vi­sion­ing of the bank and have pro­jected it at Rs 680mn while NPL stock is pro­jected at Rs 24bn, dis­play­ing an in­crease of 3% dur­ing 1HCY15. Ow­ing to eas­ing in­fla­tion and bleak oil prices out­look, there can be another in­ter­est rate cut by SBP. This will re­sult in fur­ther shrink­age of the bank's mar­gin lead­ing to re­duced earn­ings and PT, it was said.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.