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Category: Corporate

  • EFU Life Assurance’s death, disability claim payment increases by 23 percent

    EFU Life Assurance’s death, disability claim payment increases by 23 percent

    KARACHI: EFU Life Assurance Limited has settled death and disability claims of Rs3.86 billion in the year 2020, which is 23 percent higher than the preceding year, according to the financial report of the company.

    It said that timely and efficient claims settlement is at the heart of the company’s business.

    In 2020, the company settled total death and disability claims of Rs. 3.86 billion (2019: 3.14 billion), an increase of 23 percent.

    Out of this, Individual Life claims were Rs1.32 billion and Group Life claims amounted to Rs. 2.54 billion.

    Both lines of business have been impacted by death claims due to COVID-19, however the incremental claims are within the mortality fluctuation tolerance levels set by the company.

    The company has appropriate and adequate reinsurance arrangements in place to mitigate the impact of these additional pandemic related claims.

    According to the results, the company achieved a gross premium (including Takaful contributions) of Rs32.55 billion (2019: 31.75 billion), a slight growth of 2.5 percent.

    The gross premium composition was as follows:

    Individual Life regular premiums (including Takaful contributions) grew by 4.6 percent, achieving a total premium of Rs.28.72 billion (2019: Rs. 27.45 billion).

    Individual life New Business was impacted by COVID-19 lockdowns during which our distribution channels were unable to reach out to retail clients.

    The new business premium contracted to Rs6.21 billion (2019: 6.99 billion).

    Bancassurance was impacted to a greater degree due to limited banking activities during the second and third quarter of the year, while the Agency Sales force was able to make a positive recovery towards the end of the year.

    Renewal premium is a critical indicator of customer satisfaction and grew to Rs. 22.5 billion (2019: Rs. 20.45 billion), a modest increase of 10 percent. Persistency is in the

    DNA of the Company and client retention activities continued throughout the year in parallel to the pandemic when various segments of clients found it to challenging to continue their policies.

    These retention activities, for both Sale Force and Bancassurance, yielded positive results and both channels, towards end of the year, were able to improve their respective persistency levels.

    Group Benefits gross premium, including Takaful contributions, contracted to Rs. 3.23 billion (2019: Rs 3.58 billion).

    The Window Takaful Operations of the Company, Hemayah, are in their sixth year of operations and have continued to show good growth.

    The increase in demand for Islamic financial products over the years has also benefited the Company’s takaful line of business. During 2020, the Company achieved a gross takaful contribution of Rs. 5.42 billion (2019: Rs. 4.21 billion), registering an impressive growth of 29 percent.

    The Individual Family takaful new business was Rs. 2.04 billion (2019: 1.77 billion), a growth of 15 percent. Renewal contribution was Rs. 2.83 billion (2019: Rs. 1.94 billion), recording a high growth of 46 percent.

    For Group Family Takaful, the Company achieved a business of Rs. 309 million. (2019: 326 million). Overall the company expects its Takaful line of business to continue its growth trajectory during 2021.

  • Hubco acquires Eni operations in Pakistan

    Hubco acquires Eni operations in Pakistan

    KARACHI: The Hub Power Holding Limited on Monday announced to acquire all upstream operations of Eni in Pakistan.

    In an information shared by the Pakistan Stock Exchange (PSX), the it said that the Hub Power Company Limited (HUBCO) together with ENI’s local employees (in a 50:50 joint venture) has executed definitive agreements to acquire all upstream operations in Pakistan of Eni and renewable energy assets owned by Eni in Pakistan.

    By way of background, Eni is global energy company, which has been operating in Pakistan since the year 2000 in the exploration and production sector.

    The company said that the transactions is subject to requisite compliance with applicable legal and regulatory processes and approval from competent authorities.

  • Standard Chartered Bank declares 18pc fall in annual profit

    Standard Chartered Bank declares 18pc fall in annual profit

    KARACHI: Standard Chartered Bank (Pakistan) has declared annual profit of Rs13.13 billion for the year ended December 31, 2020, which was reduced by 18 percent when compared with Rs16 billion in the preceding year.

    According to financial results shared with the Pakistan Stock Exchange (PSX) on Friday, the fall in annual profit may be attributed to significant increase in provisioning and write offs during the year.

    The provisioning and write offs of the banks increased to Rs4.9 billion for the year ended December 31, 2020 when compared with Rs16.81 million in the preceding year.

    According to the financial results of the bank, an amount of Rs4.77 billion was cost under the head of provision against loans and advances for the year ended December 31, 2020.

    Net Interest Income of the bank slightly increased to Rs28.14 billion for the year under review as compared with Rs27.78 billion in the preceding fiscal year.

    Total income of the bank during the year also posted nominal growth to Rs40.93 billion when compared with Rs39 billion in the preceding year.

    Total expenses of the bank also increased slightly to Rs12.38 billion for the year ended December 31, 2020 when compared with Rs27.18 billion in the preceding year.

    The bank paid Rs10.48 billion as tax for the year ended December 31, 2020 as compared with Rs11.18 billion in the preceding year.

    Earnings per share of the bank fell to Rs3.39 as compared with EPS of Rs4.14 in the last year.

  • Engro Fertilizers wins DuPont Award

    Engro Fertilizers wins DuPont Award

    KARACHI: Engro Fertilizers has been declared as one of only three global award winners at the virtual ceremony of 14th DuPont Safety and Sustainability Awards, a press release said on Wednesday.

    As a recipient of the Global Safety Innovation Award, Engro Fertilizers has been recognized for making innovative and systemic changes to its operations to achieve higher health, safety, and environment (HSE) standards.

    The Company undertook a root and branch overhaul of its safety systems, invested in digitization initiatives, and doubled down efforts on development of new capabilities.

    In line with Engro’s philosophy of being world class in HSE, the all-encompassing Safety Beyond Excellence strategy led to an 87 percent reduction in the Total Recordable Incident Rate, resulted in a sharp reduction in operational upsets / fire incidents, significantly improved risk management and led to an increase in employee and stakeholder engagement.

    The other two DuPont global award winners are Dubai Municipality, UAE and SMRT Trains Ltd, Singapore. Engro Fertilizers edged out Saudi Arabia-based Saudi Aramco, named the winner in the EMEA region, and Brazil-based Usina Coruripe, which took home the Americas award.

    Sharing the Company’s journey of safety excellence and achievements in a panel discussion, Nadir Qureshi – CEO of Engro Fertilizers, said that, “A relentless commitment to safety is one of the core values of Engro. We have always strived to set world class HSE standards for both our employees and the communities in which we live and operate.

    “This focus is continuously reinforced by our leaderships’ commitment, with my Chairman and Board regularly highlighting this core commitment and our teams embodying this culture.

    “We are humbled by this global accolade and it is our endeavor to get to similar levels of world-class safety in the new logistics business that was launched 18 months ago with the aspiration of becoming the country’s leading long haul service provider.”

    Syed Shahzad Nabi – Senior Vice President Manufacturing, added that, “To develop the team, we put a lot of focus on enhancing the skill level both in terms of the core job, safety system and creativity. Our Transitional Training Model, followed by hands on training, enables all employees to undergo technical training and be aware of associated safety hazards.”

    In 2020, Engro Fertilizers was recognized locally and globally with several awards for displaying commitment and focus towards ensuring employee well-being and maintaining HSE standards.

    These awards include the Country Best Award by the British Safety Council, Health & Safety Silver Award by Royal Society for Prevention of Accidents, eight Green Office Awards by the World Wildlife Foundation, the Annual Fire Safety Excellence Award by the NFEH and the overall Platinum Award in Occupational Safety and Health at the Best Practices in OSH Awards.

  • PPL declares 18pc decline in gross profit in first half

    PPL declares 18pc decline in gross profit in first half

    KARACHI: Pakistan Petroleum Limited (PPL) on Friday declared 18 percent decline in its gross profit for the period July – December 2020.

    However, drastic reduction in exploration expenses and other charges the net profit (after payment of tax) of the company managed to post a growth of 7 percent for the period.

    The company declared Rs42.2 billion as gross profit for the first half of 2020/2021 as compared with Rs51.39 billion in the corresponding half of the last fiscal year.

    The major fall in gross profit may be attributed to revenue which fell to Rs75.54 billion for the six month period ended December 31, 2020 as compared with Rs85.41 billion in the same period of the last fiscal year.

    The company declared profit after tax of Rs26.27 billion for the first half of the current fiscal year as compared with Rs24.55 billion in the same period of the last fiscal year.

    The growth in after tax profit can be attributed to drastic reduction in expenses of the company.

    The cost of exploration has been reduced to Rs3.146 billion during the first half of the current fiscal year as compared with Rs11.74 billion in the corresponding period of the last fiscal year.

    The cost of other charges also fell to Rs3.88 billion for the half under review as compared with Rs7.32 billion in the corresponding half of the last fiscal year.

    PPL announced earnings per share at Rs9.64 for the first half ended December 31, 2020 as compared with Rs9.02 EPS declared in the same half of the last year.

  • UBL declares Rs20.9bn as annual after tax profit

    UBL declares Rs20.9bn as annual after tax profit

    KARACHI: United Bank Limited (UBL) on Thursday announced its financial results for the year ended December 31, 2020. The bank made provisioning and write-offs to the tune of Rs16.77 billion or 104 percent higher which trimmed its annual profit growth to 9.25 percent.

    The bank announced an amount of Rs20.9 billion as profit after tax for the year ended December 31, 2020 as compared with Rs19.13 billion profit after tax in the preceding year.

    The bank made provisioning and write-offs an amount of Rs16.77 billion for the year under review as compared with Rs8.22 billion in the preceding year.

    UBL announced earnings per share at Rs17.07 for the year ended December 31, 2020 as compared with Rs8.22 in the preceding year.

    Net interest income of the bank increased by 21.42 percent to Rs75 billion for the year under review as compared with Rs61.77 billion in the preceding year.

    Total income of the bank posted 10.24 percent growth to Rs92 billion as against Rs83.45 billion.

    Operating expenses of the bank were flat at Rs40.66 billion as compared with Rs40.21 billion.

    UBL announced a final cash dividend for the year ended December 31, 2020 at Rs9.50 per share i.e. 95 percent. This is in addition to interim dividend already paid at Rs2.50 per share i.e. 25 percent.

    UBL gets DD approval to acquire Telenor Microfinance Bank
  • National Bank declares over 93 percent growth in annual profit

    National Bank declares over 93 percent growth in annual profit

    KARACHI: National Bank of Pakistan (NBP) on Wednesday declared massive growth of over 93 percent in annual profit for period ended December 31, 2020.

    The bank’s profit after tax grew to Rs30.56 billion for the year under review as compared with the net profit of Rs15.81 billion in the preceding year.

    The significant growth may be attributed to sharp increase in gains from securities and reduction in operating expenses.

    The net mark-up income of the banks grew to Rs104.15 billion for the year ended December 31, 2020 as compared with Rs71.9 billion in the preceding year.

    Total income of the bank surged to Rs140.23 billion as compared with Rs108 billion.

    The bank’s gains from securities posted a massive growth of 273 percent to Rs7.88 billion for the year under review as compared with Rs2.11 billion in the preceding year.

    Operating expenses of the banks were at Rs62.79 billion for the year ended December 31, 2020 as compared with Rs65.7 billion in the preceding year.

    Provisioning and write-offs has cost the banks to the tune of Rs30.89 billion as compared with preceding year’s Rs14.25 billion.

    The bank declared Rs14.36 as earnings per share for the year ended December 31, 2020 as compared with Rs7.43 EPS in the preceding year.

    The board of directors of the bank, however, not recommended any cash dividend, bonus issue/right shares or any other entitlement.

  • Fauji Cement announces setting up new plant

    Fauji Cement announces setting up new plant

    KARACHI: Fauji Cement Company Limited has announced to set up a Greenfield Cement Manufacturing Plant of 2.05 million tons per annum at Dera Ghazi Khan.

    In a communication sent to Pakistan Stock Exchange (PSX), the company said that consequent to construction activity picking up and significant spend on infrastructure, expected to continue, the board of directors of the company had decided to invest in additional cement capacity.

    According, the board of directors of Fauji Cement Company Limited in its meeting held on February 19, 2021 has approved subject to all regulatory approvals setting up of Greenfield Cement Manufacturing Plant of 2.05 million tons per annum at Dera Ghazi Khan.

    The equity portion of the expansion will be funded through internal cash generation.

    “The total project cost will be announced after conclusion of negotiation with the suppliers and contractors,” the company said.

    The construction work on the project is expected to commence with current financial year and is expected to have a construction period of above 2.5 years.

    Currently, the company is targeting financial closed by March 31, 2021.

  • Engro Corp declares 45 percent growth in annual profit

    Engro Corp declares 45 percent growth in annual profit

    KARACHI: Engro Corporation (PSX: ENGRO) has declared 45 percent increase in annual profit to Rs44.4 billion for the year ended December 31, 2020 as compared with Rs30.59 billion in the preceding year.

    Engro’s consolidated revenue grew by 10 PERCENT, from Rs225.76 billion during 2019 to Rs248.81 billion primarily attributable to higher revenue from full-year operations of Thar energy projects.

    On a standalone basis, the company posted a profit after tax of Rs16.30 billion against Rs14.30 billion for the comparative year, translating into an earnings per share of Rs28.29 per share.

    Increase in standalone profitability is primarily on account of higher dividends from subsidiaries as well as full inter-corporate tax relief on dividends in 2020 versus partial relief in 2019.

    The company announced a final cash dividend of Rs2/- per share for the year. This is in addition to Rs24/- per share announced during the year, bringing cumulative payout to Rs26/- per share.

    COVID-19: Hussain Dawood Pledge

    The Covid-19 pandemic continues to be an unprecedented global challenge that is, to date, having devastating effects on public health, economies, and societies around the world. As vaccination programs roll-out globally, Pakistan is procuring Covid-19 vaccines from various manufacturers and planning to launch its Covid-19 vaccination drive in the first quarter of 2021.

    Despite these challenging times, we remain committed to our Central Idea which guides us to improve lives of all Pakistanis and have a positive impact on the society. In order to tackle the pandemic’s negative impacts on Pakistan, Chairman Hussain Dawood, on behalf of Dawood Hercules Corporation, Engro Corporation, and his family, pledged a contribution in services, kind, and cash of Rs1 billion for short / medium / and long-term recovery. To date,  Rs301 million have been donated via cash and kind with focus on disease prevention, protecting and enabling healthcare practitioners and frontline workers, enabling patient care and facilities and bolstering livelihoods and sustenance of the most deserving in society.

    We believe we must remain fully transparent while attempting to make an impact and work towards saving lives. Further details regarding the Pledge and its initiatives may be viewed at

  • Habib Bank posts 100 percent growth in annual profit

    Habib Bank posts 100 percent growth in annual profit

    KARACHI: Habib Bank Limited on Wednesday declared 100 percent growth in net profit for the year ended December 31, 2020.

    The bank recorded after tax profit of Rs31 billion for the year 2020 as compared with Rs15.5 billion in the preceding year.

    The healthy annual profit can be attributed to gain on securities of Rs7 billion in the year 2020 as compared with loss in securities of Rs2.65 billion in the preceding year.

    Banking experts said that high participation of banks in market treasury bills and Pakistan Investment Bonds resulted in significant yields in profits.

    According to the financial results the net mark-up and interest income of the banks increased to Rs130 billion during the year under review as compared with Rs101 billion in the preceding year.

    Total income of the banks increased to Rs160 billion for the year 2020 as compared with Rs125.5 billion in the preceding year.

    Operating expenses of the banks was at Rs94 billion for the year 2020 as compared with Rs92.23 billion in the preceding year.

    The bank declared earnings per share increased to Rs21.06 for the year 2020 as compared with Rs10.45 in the preceding year.

    A final cash dividend for the year ended December 31, 2020 at Rs3 per share i.e. 30 percent. This is in addition to interim dividends already paid at Rs1.25 per share i.e. 12.5 percent.