Pkrevenue.com

Category: Corporate

  • United Bank declares 46pc growth in Q1 profit

    United Bank declares 46pc growth in Q1 profit

    KARACHI: United Bank Limited (UBL) on Thursday declared 46 percent growth in its net profit for the quarter ended March 31, 2021 due to significant decline in provisioning and write-offs.

    The bank declared Rs7.4 billion profit after tax for the first quarter (January – March) of calendar year 2021 as compared with Rs5.06 billion in the corresponding period of the last year.

    The bank also declared Rs6.05 as earnings per share (EPS) for the quarter ended March 31, 2021 as compared with Rs4.13 in the corresponding quarter of the last year.

    According to the financial results submitted to the Pakistan Stock Exchange (PSX) the provisions/write-offs of the banks was at Rs354 million during the first quarter of 2021 as compared with Rs3.7 billion in the corresponding quarter of the last year.

    Net Markup / Interest Income of the bank, however, fell to Rs16.85 billion for the quarter under review as compared with Rs17.34 billion in the corresponding quarter of the last year.

    Non mark-up/interest income of the bank increased to Rs5.78 billion for the quarter ended March 31, 2021 as compared with Rs4.66 billion in the corresponding quarter of the last year.

    The bank also made considerable income through gain on securities to Rs1.86 billion during the first quarter of 2021 as compared with Rs342 million in the same quarter of the last year.

    Total income of the bank during the quarter increased nominally to Rs22.64 billion during first quarter of 2021 as compared with Rs22 billion in the corresponding period of the last year.

    Operating expenses of the bank remained flat at Rs9.85 billion as compared with Rs9.47 billion. Total expenses of UBL rose to Rs10.12 billion during the first quarter of 2020 as compared with Rs9.87 billion in the corresponding quarter of the last year.

  • Meezan Bank declares Rs6.1 billion profit after tax for first quarter

    Meezan Bank declares Rs6.1 billion profit after tax for first quarter

    KARACHI: Meezan Bank Limited, which is providing Sharia compliant banking and financing in Pakistan, on Tuesday declared Rs6.1 billion after tax profit for the quarter ended March 31, 2021.

    The net profit of the bank increased by 11 percent during the first quarter (January – March) 2021 when compared with the net profit of Rs5.5 billion in the corresponding period of the last fiscal year.

    According to the financial results of the bank, the profit/return earned on Islamic financing and related assets, investment and placements fell to Rs24.23 billion during first three months of the calendar year 2021 as compared with Rs29.83 billion in the corresponding months of the last year.

    Similarly, profit on deposits and other dues expensed also reduced to Rs9.17 billion during the period under review as compared with Rs15.11 billion in the corresponding period of the last year.

    However, the bank recorded 61 percent growth in fee and commission income to Rs2.06 billion for the quarter ended March 31, 2021 as compared with Rs1.28 billion in the same quarter of the last year.

    Total income of the income for the quarter under review increased to Rs18.61 billion as compared with Rs17.91 billion in the corresponding quarter of the last year.

    The operating expenses of the bank increased to Rs7.83 billion during January – March of 2021 as compared with Rs6.8 billion in the same period of the last year.

    Meezan Bank declared Rs4.31 as earnings per share (EPS) for the quarter ended March 31, 2021 as compared with Rs3.89 in the same quarter of the last year.

  • HBL declares 108 percent growth in quarterly profit

    HBL declares 108 percent growth in quarterly profit

    KARACHI: Habib Bank Limited (HBL) on Tuesday announced 108 percent increase in profit for the quarter ended March 31, 2021. The profit after tax of the bank increased to Rs8.56 billion during the first quarter (January – March) 2021 from Rs4.11 billion in the same quarter of the last year.

    Analysts at Insight Research said that the results of the bank were above expectation.

    “The result is above our expectation of Rs4.3/share as net interest income and non-markup income came in higher from our expectations. The result is also accompanied by a cash dividend of Rs1.75/share,” they said.

    Net interest income (NII) increased by 16 percent/4 percent YoY/QoQ to clocked-in Rs32.4 billion, possibly due to lagged impact of repricing and balance sheet expansion. However, we await detailed account for further clarity in this regard.

    Non-Markup income increased by 42 percent/26 percent YoY/QoQ to clocked-in at Rs8.2 billion. This is primarily led by a higher fee income which increased by 25 percent YoY, while recovery of income in FX operations and derivatives further fueled non-markup income.

    Bank has booked provision of Rs1.9 billion against a provision of Rs0.62 billion booked in SPLY. To note, HBL has booked hefty provisioning in both general and specific categories during CY20 (Rs12.2 billion).

    Operating expenses witnessed a contraction of 7 percent YoY, to clocked-in at Rs24.2 billion, attributable to a reduction in business transformation cost.

    Effective taxation remained at 41 percent during the quarter as compared to 42 percent in SPLY.  

  • Engro Corp approves $31.4m for petrochemical project study

    Engro Corp approves $31.4m for petrochemical project study

    KARACHI: The board of directors of Engro Corporation Limited has approved $31.4 million for commencement of a study on a projected related to petrochemical chemical for future investment prospects.

    In an information shared with the Pakistan Stock Exchange (PSX), the company said that the board in its meeting held on April 08, 2021 approved an amount of up to $31.4 million towards conducting engineering, design and technical studies including a Front End Engineering Design (FEDD) study in relation of PDH-PP Project.

    The result of these studies, when completed, are expected to inform the final investment decision in relation to this project, which decision will also be based on a conducive policy environment and arranging the right mix of debt and equity partners at such time.

  • Byco Petroleum changes name

    Byco Petroleum changes name

    KARACHI: Byco Petroleum Pakistan Limited has changed its official name to Cinergyco PK Limited, according to information shared with Pakistan Stock Exchange (PSX) on Wednesday.

    It said that the board of directors has considered and approved a change in company’s name from Byco Petroleum Pakistan Limited to Cinergyco PK Limited.

    Consequently, for such purpose, the board has also resolved to call an extraordinary general meeting for seeking approval/authorization of the shareholders, the company added.

  • Philip Morris declares Rs1.76bn after tax annual profit

    Philip Morris declares Rs1.76bn after tax annual profit

    KARACHI: Philip Morris (Pakistan) Limited on Thursday declared a profit of Rs1.76 billion for the year ended December 31, 2020 as against loss of Rs1.96 billion in the preceding year.

    A statement said that the company recorded profit after tax of Rs1.765 billion for the year ended December 31, 2020 compared to loss after tax of Rs1.980 billion for the year ended 2019.

    The increase in operating profit before tax compared to last year is mainly due to significant decrease in ‘other expenses’ by Rs2.732 billion. This decrease in other expenses is primarily attributable to one-off impairment and employee separation cost charged on account of closure of our factory in Kotri during 2019.

    During the year ended, the Company’s volume declined by 20 percent mainly reflecting the pressure faced by the legally compliant tax paying cigarette sector from the expanding illicit one, which now accounts for approximate 37 percent of the total market for the year 2020 versus 33.1 percent for the year 2019 (Retail Audit).

    The Company’s contribution to the National Exchequer, for the year ended December 31, 2020, in the form of excise duty, sales tax and other government levies, stood at Rs22.110 billion, a decrease of 6 percent, compared to the preceding year.

    This is mainly attributable to the excessive excise duty increases of 93 percent (Value Tier) during Federal Budgets of September 2018 and June 2019 that stretched the price gap between duty evaded and duty paid cigarettes which are selling at lower prices than the minimum price prescribed under tax regime with respect to levy and collection of federal excise duty i.e. Rs63/ per pack.

    In March 2020, the government issued a Statutory Regulatory Order No. 72(I)/2020 further restricting advertising, promotion and sponsorship of tobacco and tobacco products leading to a lack of a level playing field for law abiding corporates.

    During the period ended December 31, 2020 the Company’s domestic net turnover stood at Rs13.983 billion resulting in an increase of 7 percent driven by the excise led price increase in June 2019 coupled with price increase in February 2020, both were essential to offset the adverse impact of severe volume decline of 20 percent versus 2019.

    During the same time, the Company’s exports turnover stood at Rs2.613 billion (US$ 16.3 million) showing a significant increase as compared to last year shows the Company’s commitment to support Pakistan’s goals of increasing exports and earn foreign exchange for the Country.

  • Dun & Bradstreet signs pact with Trade Foresight for verified business data

    Dun & Bradstreet signs pact with Trade Foresight for verified business data

    KARACHI: Trade Foresight has entered into an agreement with Dun & Bradstreet Pakistan (D&B), the world’s leading source of business information and insights. Under the agreement, D&B will power Trade Foresight with D&B Verified Company and Business Profiles.

    Integrating D&B’s Verified and Globally recognized Business Profiles will allow Trade Foresight’s customers to have access to the largest corporate database and make more confident business decisions by viewing verified Business Profiles and D&B Ratings.

    D&B shall power Tarde Foresight by enabling state-of-the-art API integration tools (Direct+), completely automating the data and information sharing process between both Companies.

    Dun & Bradstreet (D&B), with a presence of over 179 years and operating in over 200 countries, is a global Information Services and Risk Management Company. D&B, which possesses over 400 million business records worldwide, provides robust data and compliance solutions to millions of businesses, including over 90% of fortune 500 companies.

    On the occasion of the signing, Nauman Lakhani, County Head for Dun & Bradstreet in Pakistan, said: “Dun & Bradstreet is delighted to empower Trade Foresight/Inseyab with the world’s largest database as well as insights. We are confident that clients of Trade Foresight/Inseyab will surely benefit from this arrangement. For the last 2 years, our presence in Pakistan has seen us working with Financial Service Providers and Corporates alike. This collaboration has the potential to reach a large pool of local businesses for the facilitation of their data needs.”

    Speaking on occasion, Dr. Muhammad Ehsan Khan, CEO & Founder of Trade Foresight/Inseyab, said, “Trade Foresight is currently being used by the Traders and Trade Associations of more than 30 countries, and the platform is helping them make effective trade decisions. One of the key challenges that we were facing was around Trader’s Data validation, and having Dun & Bradstreet as our partner helps us solve this issue. We look forward to supporting our traders by helping them connect with verified local/international trade partners and grow their businesses globally. Our vision is to help Pakistan balance its trade deficit, and we believe that digitally equipping Pakistani traders with the verified data and tools can have a positive impact in the achievement of this vision.”

    Trade Foresight is the World’s First Data and Analytics-Driven Trade Platform that provides companies trade insights that facilitate informed decisions. With offices across 5 countries, the platform enables this by highlighting potential risks via integrated/correlated trade data from verified sources. Trade Foresight helps identify opportunities that can support businesses in increasing their export market share and ensuring a resilient import supply chain.

  • Meezan Bank, Master Group sign agreement for online solution

    Meezan Bank, Master Group sign agreement for online solution

    KARACHI: Meezan Bank Limited and Master Group have signed an agreement for the online banking solution, a statement said on Monday.

    According to the agreement that was signed recently, Meezan Bank, through the provision of its state-of-the-art online banking solution, named eBiz+, will enable Master Group to fully automate its customer collections and supplier payments, catering to every client’s needs with a configurable and intelligent platform.

    The partnership will focus on creating value for Master Group by serving as an end-to-end transaction banking ecosystem based around an array of services covering working capital cycle, standardized reporting, greater safety and efficiency as well as world-class cyber security – all in one place, via eBiz+ – an integrated solution.

    The agreement was signed by Abdullah Ahmed – Group Head, Corporate & Institutional Banking, Meezan Bank and Shahzad Malik – Managing Director, Master Group.

    Also present at the occasion were Senior Executives of both organizations including Saqib Ashraf – Head of Transaction Banking, Meezan Bank, Amir Mushtaq Butt – Director Finance, Master Group and others.

    Abdullah Ahmed, while speaking at the occasion said: “As Pakistan’s leading Islamic bank, Meezan Bank has sophisticated Transaction Banking services including cash management.

    “We are thrilled to partner with Master Group as a trusted collaborator to automate their business/banking processes while ensuring operational integrity resulting in business efficiency with utmost security.”

    Meezan Bank is capitalizing on the strong trend in the banking industry towards digital banking with more and more clients preferring more specific internet banking solutions. Shahzad Malik commended the Bank for bringing forth operational efficiency in its payments & collection process.

  • Lucky Cement starts commercial operation in Iraq

    Lucky Cement starts commercial operation in Iraq

    KARACHI: Lucky Cement Limited on Thursday announced it has commenced commercial operation of cement production facility in Iraq.

    In a communication, the company said that the Greenfield cement production facility in Samawah, Iraq with a capacity of 1.2 million tons per annum has successfully commenced its commercial operations with effect from March 10, 2021.

    The cement production facility is a joint venture with Al-Shamookh group of Iraq.

    The company further said that consequent to the addition, its overseas cement capacity increased at 4.12 million tons per annum.

    Details of the overseas production facility are as follow:

    – Cement Grinding Plant in Basra, Iraq: 1.74 MTPA

    – Fully integrated cement plant in democratic republic of Congo: 1.18 MPTA

    – Fully integrated cement plant in Samawah, Iraq: 1.2 MPTA

  • 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.