Karachi – The State Bank of Pakistan (SBP) has reported an increase of $25 million in the country’s liquid foreign exchange reserves, bringing the total to $15.63 billion for the week ending August 23, 2019.
(more…)Author: Mrs. Anjum Shahnawaz
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Meezan Bank’s total assets cross Rs1 trillion
KARACHI: The total assets of Meezan Bank has crossed Rs 1 trillion mark by June 30, 2019, a statement said on Thursday.
The Board of Directors of Meezan Bank Limited in its meeting, held at Karachi on August 28, 2019 approved the condensed interim unconsolidated financial statements of the Bank and its consolidated financial statements for the half year ended June 30, 2019.
The meeting was presided by Riyadh S.A. A. Edrees – Chairman of the Board; Faisal A. A. A. Al – Nassar – Vice Chairman of the Board was also present.
The Bank continued its growth momentum and posted excellent results for the half year ended June 30, 2019. Total assets of the Bank crossed the Rs 1 trillion mark for the first time in its history while profit after tax for the half year crossed Rs7 billion – a growth of 70 percent from the comparative period last year.
The Earnings per Share (EPS) – on enhanced capital were Rs 5.44 per share. The Bank remains a well-capitalized institution with Capital Adequacy Ratio of 16.22 percent.
The board has approved 10 percent interim cash dividend (Rs 1.0 per share) for the second quarter of 2019, bringing the total dividend payout for the half year to Rs 2.0 per share (20 percent) as Re 1.0 per share i.e. 10 percent cash dividend along with 10 percent bonus shares were approved in the last board meeting.
The Bank has maintained an unbroken payout record since its listing on Stock Exchange in the year 2000. Deposits of the Bank grew by 7 percent to reach Rs 842 billion while its financing portfolio closed at Rs 484 billion with an ADR of 57 percent. The NPL ratio and NPL coverage ratio stood at 1.60 percent and 130 percent.
Total operating income of the Bank increased by 55 percent, primarily due to continuous focus on maintaining higher volume of earning assets portfolio and rise in the asset yields pursuant to increase in Target Rate.
The Bank’s return on deposits also recorded a twofold rise mainly due to increase in depositors’ profit rates and volumetric growth. Fees and commission income of the Bank grew by 26 percent primarily due to increase in the trade business volume handled by the Bank and other branch banking related income.
Operating expenses and other charges increased by 26 percent primarily due to devaluation of Pakistani Rupee and increase in costs associated with new branches – an investment in future.
The rise in expenses was sufficiently absorbed by the growth in the Bank’s income, resulting in improvement in income efficiency ratio by 11 percent. The Bank added 18 new branches to its network during the half year, bringing the total number of branches to 678 in 189 cities.
The VIS Credit Rating Company Limited (formerly JCR-VIS Credit Rating Company Limited), has reaffirmed the Bank’s Entity Rating of ‘AA+’ (Double A Plus) for the Long Term and ‘A1+’ (A-One Plus) for the Short Term with stable outlook. The VIS Credit Rating Company Limited has also reaffirmed the rating of Subordinated Tier II Sukuk and Additional Tier I Sukuk of the Bank at ‘AA’ (Double A) and ‘AA-’ (Double A Minus) respectively. These ratings indicate sound performance of the Bank.
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Stock market ends down by 479 points on selling pressure
KARACHI: The stock market shed 479 points on Thursday owing to selling in major scrips.
The benchmark KSE-100 Index of Pakistan Stock Exchange closed at 30,159 points as against 30,638 points showing a decline of 479 points.
Analysts at Arif Habib Limited said that quite an eventful day it was, from divestment of GOP’s stakes in OGDC and PPL to resolution of GIDC issue for Fertilizer Sector and HASCOL’s result announcement.
Re-iteration of GOP’s intent to divest shares of OGDC (7 percent) and PPL (10 percent) with a host of other transactions in Bank and Power sector, caused selling pressure in both OGDC and PPL, which by the end of session resulted in PPL hitting lower circuit, whereas OGDC also saw activity near lower circuit.
For good part of the session, the index saw oscillation of +171 points and -250 points, including the episode of resolution of GIDC issue that is considered mainly positive for the Fertilizer Sector.
Resultantly, FFC and FFBL hit upper circuits but saw selling pressure at Market on Close (MOC). HASCOL also announced results that caused investors to sell at lower circuit.
Selling pressure mounted by the end of session, which resulted in market realizing a total loss of 527 points with the index closing at -497 points (unadjusted).
Sectors contributing to the performance include E&P (-156 points), Banks (-132 points), Cement (-59 points), O&GMCs (-41 points), Power (-38 points), Fertilizer (+73 points).
Volumes declined from 149 million shares to 118.4 million shares to. Average traded value also declined by 19 percent to reach US$ 27.8 million as against US$ 34.2 million.
Stocks that contributed significantly to the volumes include LOTCHEM, KEL, WTL, PAEL and OGDC, which formed 29 percent of total volumes.
Stocks that contributed positively include FFC (+67 points), EFERT (+13 points), DAWH (+12 points), FFBL (+6 points) and FATIMA (+4 points). Stocks that contributed negatively include OGDC (-70 points), PPL (-65 points), HBL (-40 points), UBL (-27 points) and LUCK (-26 points).
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Rupee gains 7 paisas on improved inflows
KARACHI: The Pak Rupee gained 7 paisas against dollar owing to improved inflows of remittances and export receipts.
The rupee ended Rs157.22 to the dollar from previous day’s closing of Rs157.29 in interbank foreign exchange market.
Currency experts said that the improved inflows of worker remittances and export receipts helped the local currency to make gains against the greenback.
The foreign currency market was initiated in the range between Rs157.25 and Rs157.35. The market recorded day high of Rs157.39 and low of Rs157.20 and ended at Rs157.22.
The exchange rate in open market also witnessed appreciation in rupee value. The buying and selling of dollar was recorded at Rs157.00/Rs157.50 from the previous day’s closing of Rs157.10/Rs157.60.
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FBR notifies transfers, postings of chief collectors
KARACHI: Federal Board of Revenue (FBR) has notified transfers and postings of chief collectors of customs with immediate effect and until further orders.
The FBR notified transfers and postings of following officers of Pakistan Customs Service (PCS) in BS-20-21:
01. Ms. Zeba Hai Azhar (Pakistan Customs Service/BS-21) has been transferred and posted as Chief Collector of Customs Enforcement (Central), Lahore from the post of Chief Collector of Customs (Central), Lahore.
02. Dr. Fareed Iqbal Qureshi (Pakistan Customs Service/BS-21) has been transferred and posted as Chief Collector of Customs Appraisement (Central), Lahore from the post of Collector, Model Customs Collectorate of Preventive, Karachi.
03. Imtiaz Ahmed Shaikh (Pakistan Customs Service/BS-20) has been transferred and posted as Collector, Model Customs Collectorate of Exports, Custom House, Karachi from the post of Chief, Federal Board of Revenue (Hq), Islamabad.
04. Muhammad Saqif Saeed (Pakistan Customs Service/BS-20) has been transferred and posted as Collector, Model Customs Collectorate of Preventive, Karachi from the post of Collector, Model Customs Collectorate of Exports, Custom House, Karachi.
The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.
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KTBA refuses comments on draft return forms on given format
KARACHI: Karachi Tax Bar Association (KTBA) has refused the Federal Board of Revenue (FBR) for giving comments on draft return form for tax year 2019 as the present format of the draft form was not appropriate for checking.
The FBR issued draft return forms for individuals and Association of Persons (AOPs) through SRO 951(I)/2019 dated August 23, 2019 and it asked stakeholders to provide feedback within seven days in order to finalize the return forms.
“The forms of returns of income are in pdf format and therefore, it is not possible to check as to whether row and columns of the return forms are in consonance with the provisions of the Income Tax Ordinance, 2001 as applicable to the tax year 2019,” the KTBA said in its letter to the FBR chairman sent on Wednesday.
Unless these forms are provided in offline/demo mode along with the formulas or at least in Excel format, the members of the bar are not in position to provide any feedback / comments.
The KTBA asked the FBR to provide these forms in offline/demo along with the formulas or in excel format in order to evaluate the forms and provide FBR with feedback/comments.
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Stock market gains 53 points amid selling pressure
KARACHI: The stock exchange gained 53 points on Wednesday after selling pressure eroded earlier day gain of over 500 points.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 30,638 points as against 30,585 points showing an increase of 53 points.
Analysts at Arif Habib Limited said that in a diametrically opposite fashion, compared with yesterday, the index erased all the gains made earlier during the session today when market went up by 528 points.
Market on Close (MOC) saw selling pressure that brought the index in red towards -33 points but closed at +53 points.
The uptrend earlier during the session was contributed by Refinery, Steel, Autos, Fertilizer and Cement sectors whereby index heavy weight scrips traded near upper circuit and blue chips in Refinery and Steel hit upper circuit.
Cement sector led the volumes table again with 20.5 million shares followed by Banks (15.5 million) and Chemical (15.5 million). Among scrips, KEL topped the volume with ~10 million shares, followed by MLCF (8.4 million) and UNITY (7.1 million).
Sectors contributing to the performance include Commercial Banks (+36 points), E&P (+36 points), Fertilizer (+31 points) and Tobacco (+18 points).
Volumes increased from 119.8 million shares to 149.0 million shares (+24.4 percent DoD). Average traded value however, increased by 1.5 percent to reach US$ 34.2 million as against US$ 33.7 million.
Stocks that contributed significantly to the volumes include KEL, MLCF, UNITY, LOTCHEM and TRG, which formed 25 percent of total volumes.
Stocks that contributed positively include ENGRO (+31 points), UBL (+29 points), POL (+25 points), PAKT (+18 points) and MEBL (+17 points).
Stocks that contributed negatively include DAWH (-16 points), NESTLE (-15 points), COLG (-11 points), KEL (-10 points) and HMB (-9 points).
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Rupee eases by three paisas on dollar demand
KARACHI: The Pak Rupee eased by three paisas against dollar on Wednesday owing to rise in demand for import payments.
The rupee ended at Rs157.29 to the dollar from previous day’s closing of Rs157.26 in interbank foreign exchange market.
Currency experts said that the dollar demand was remained higher during the day. However, the local unit managed the early day losses.
The foreign currency market was initiated in the range of Rs159.40 and Rs157.48. The market recorded day high of Rs157.60 and low of Rs157.28 and close at Rs157.29.
The exchange rate in open market also witnessed depreciation in rupee value. The buying and selling of dollar was recorded at Rs157.10/Rs157.60 from previous day’s closing of Rs157.00/Rs157.50 in cash ready market.
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FBR notifies transfers, postings of IR Chief Commissioners
ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday notified transfers and postings of Chief Commissioners Inland Revenue (CCIR) with immediate effect and until further orders.
The FBR notifies transfers and postings of following CCIR of BS-20-21 Inland Revenue Service (IRS):
01. Nazir Ahmad Shoro (Inland Revenue Service/BS-21) has been transferred and posted as Chief Commissioner Inland
Revenue Regional Tax Office, Multan from the post of Member, Federal Board of Revenue (Hq), Islamabad.02. Dr. Ghulam Mustafa Rahu (Inland Revenue Service/BS-21) has been transferred and posted as Member, Federal Board of Revenue (Hq), Islamabad from the post of Chief Commissioner-IR, Regional Tax Office, Sukkur.
03. Dr. Muhammad Ali Khan (Inland Revenue Service/BS-21) has been transferred and posted as Member, Federal Board of Revenue (Hq), Islamabad from the post of Chief Commissioner-IR, Large Taxpayers Unit-II, Karachi.
04. Dr.Lubna Ayub (Inland Revenue Service/BS-21) has been transferred and posted as Chief Commissioner Inland Revenue Regional Tax Office, Hyderabad from the post of Director, Directorate of Law, Karachi.
05. Dr. Tauqeer Ahmad Memon (Inland Revenue Service/BS-20) has been transferred and posted as Chief Commissioner Inland Revenue Regional Tax Office, Sukkur from the post of Commissioner-IR, (WHT Wing) Regional Tax Office, Hyderabad.
06. Shahid Iqbal Baloch (Inland Revenue Service/BS-20) has been transferred and posted as Chief Commissioner Inland Revenue (OPS) Large Taxpayers Unit-II, Karachi from the post of Chief Commissioner-IR, (OPS) Regional Tax Office, Hyderabad.
07. Yousif Hyder Shaikh (Inland Revenue Service/BS-20) has been transferred and posted as Chief Commissioner Inland Revenue Regional Tax Office, Quetta from the post of Commissioner-IR, Corporate Regional Tax Office, Karachi.
08. Sahibzada Abdul Mateen (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-I) Regional Tax Office, Quetta from the post of Chief Commissioner-IR, Regional Tax Office, Quetta.
The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.
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NBP declares 11.12pc decline in after tax profit to Rs11.1 billion
KARACHI: National Bank of Pakistan (NBP) on Wednesday declared decline in net profit by 11.12 percent to Rs11.1 billion for the first half ended June 30, 2019.
According to financial results for the half yearly ended June 30, 2019 submitted to Pakistan Stock Exchange (PSX), the bank declared after tax profit of Rs11.101 billion as compared with Rs12.49 billion for the corresponding period of the last year.
The public sector bank declared Rs5.22 earnings per share for the half year as compared with Rs5.87 EPs for the same period of the last year.
The earning of the bank declined owing to higher amount of tax payment for the period under review. The bank discharged tax liability of Rs9.28 billion for the period January – June 2019 as compared with Rs4.66 billion in the corresponding period of the last year.
Total income of the bank for the period under review increased by 18.45 percent to Rs53.76 billion as compared with Rs45.39 billion for the period ended June 30, 2018.
Net mark-up/interest income of the bank increased to Rs35.56 billion for the period ended June 30, 2019 as compared with Rs30.14 billion in the same period of the last year.
While total non-mark up / interest income of the banks increased to Rs18.2 billion as compared with Rs15.25 billion.
Operating expenses of the bank increased to Rs27.8 billion from Rs25.41 billion.
The provisions and write offs of the banks also increased to Rs5.49 billion for the first half ended June 30, 2019 as compared with Rs2.82 billion in the corresponding period of the last year.
The profit before taxation of the bank came at Rs20.38 billion by June 30, 2019 as compared with Rs17.16 billion in the corresponding period of the last year.