HBL, NBP, UBL declared important banks
The State Bank of Pakistan declared the Habib Bank Ltd ( HBL), National Bank of Pakistan ( NBP) and United Bank Ltd (UBL) as the most important banking institutions in the country under a framework introduced in 2018.
The central bank's announcement was based on the assessment of three banks' financials as of Dec 31, 2019 and were designated domestic systemically important banks (D-SIBs) for the year 2020.
The framework introduced by the SBP is consistent with the international standards and practices and takes into account the local dynamics. It specifies the methodology for the identification and designation of DSIBs, enhanced regulatory and supervisory requirements and implementation guidelines.
"These enhanced requirements aim to further strengthen the resilience of the systemically important banks against shocks and augment their risk management capacities," said the SBP.
Maple Leaf Cement Factory Ltd informed the Pakistan Stock
Exchange that the company had acquired 24.761 million voting shares of Pioneer Cement at the average rate of Rs94.41 apiece.
The new acquisition takes the MLCF stake in PIOC to 10.9pc.
Insight Securities CEO Zubair Ghulam Hussain said the acquisition was reflection of the confidence of acquirers on the cement industry's growth and dynamics. "However, only the board of directors of the acquirer would be aware of the real reason behind the extension of a company's shareholding in another, which would never be known until the buyer chooses to make it public."
National Bank of Pakistan earned Rs15.2 billion in profit after tax for the first half of 2020, translating into earnings per share of Rs7.14.
This was up from net income of Rs11.07bn and EPS Rs5.20 in same period last year.
"With strong growth in core earnings, the bank reported unconsolidated PAT of Rs15.2bn, up by Rs4.1bn or 36.8 per cent compared to the same period last year," said a press release on Wednesday.
Net assets of the bank increased by Rs26.4bn to
Rs259bn, as against December 2019 level of Rs232.6bn.
During 1HCY20, NBP earned interest income amounting to Rs145.3bn, which is 49pc higher than Rs97.7bn over the same period of last year.
Telenor Microfinance Bank, the operator of digital payments platform Easypaisa, has received an investment of $45 million from its shareholders Telenor Group and Ant Group Co, said a press release issued on Wednesday.
The investment by the shareholders has further strengthened the bank's capital position and placed the organisation on an upward trajectory to continue its growth in the mobile payment space, the document added.
The Federal Board of Revenue (FBR) will start a pilot project of Authorised Economic Operators (AEO) in October at the Model Customs Collectorate Port Qasim ( Exports) in Karachi.
An official statement said the AEO Programme will later be extended to the import sector as well.
National Bank of Pakistan is one of the biggest banks of Pakistan, but its stock is performing badly in the stock market. It has high revenue but doesn't pay regular dividends. The Board of NBP is requested to start paying regular dividends to its shareholders. They should also start managing their stock position by buying back stock at low rates and selling at higher rates to earn revenue for the Bank.
Similarly, other public sector companies should also be asked to start providing regular dividends to shareholders. This will have two major benefits.
Firstly, whenever the performance of a public company is reduced and dividends are stopped, that would trigger the warning to shareholders, company and the Government that something is wrong.
Secondly, regular dividends shares will increase stock exchange position and provide alternatives to citizens and companies to earn profits on small investments.