Indus Motor Company Limited on Monday announced 74 per cent decline in after tax profit for the first half of fiscal year 2022-2023.
(more…)Tag: financial results
-
MCB Bank registers 10pc increase in annual profit; forex income surges 149pc
MCB Bank Limited on Wednesday announced 10 per cent growth in net annual profit to Rs34.45 billion for the year ended December 31, 2022 as compared with Rs31.33 billion in the preceding year.
(more…) -
Honda Atlas announces 52pc decline in profit after tax for period ended Dec 2022
Honda Atlas Cars Ltd on Thursday announced a 52 per cent decline in net profit for the nine-month period ended December 31, 2022.
(more…) -
Faysal Bank posts 51% growth in profit before tax
Faysal Bank Limited has posted a massive growth of 51 per cent in its profit before tax for nine months period ended September 30, 2022.
According to a statement issued on Tuesday, Faysal Bank Limited achieved the landmark of Rs1 trillion mark in balance sheet footings with a record profit before tax of Rs15.0 billion, 51 per cent higher than the corresponding period last year
The Board of Directors of Faysal Bank Limited (FBL), in their meeting held on October 27, 2022, approved the financial statements of the Bank for the nine months ended September 30, 2022 and announced an interim cash dividend of Rs. 5.50 per share i.e. 55 per cent. This is in addition to interim cash dividend for the second quarter ended June 30, 2022 already paid at Rs. 0.50 per share i.e. 5 per cent.
The bank is very close to the completion of the requirements of converting Faysal Bank Limited into a full-fledged Islamic bank. Accordingly, all the Non-Shariah Compliant retained earnings of the Bank are being distributed to the shareholders as cash dividend.
FBL has delivered exuberant performance in the nine months of 2022 with a Profit Before Tax (PBT) of Rs. 15.0 billion, 51 per cent higher than the Rs. 9.9 billion in the corresponding period last year. However, the increase in Profit After Tax (PAT) is restricted to 26 per cent from Rs. 6.1 billion in 9m’21 to Rs. 7.7 billion in first nine months of 2022 on the back of extremely high and retrospective tax measures announced in the federal budget.
Current deposit momentum built over last several quarters continued and has reached Rs. 274 billion, 27 per cent growth over December 2021. Total deposits increased by 13 per cent over December 2021 with CASA mix improving to 80 per cent from 75 per cent at December 2021. FBL’s net advances increased by 18 per cent to Rs. 468 billion, with the growth across all lending businesses and improvement in ADR to 65 per cent as at September 2022. Despite the prevailing uncertainty, FBL is committed to its strategy for conversion into Islamic bank and have applied to SBP for issuance of Islamic Banking License.
The Bank continued to deliver on growth objectives and increased the total revenue by 33 per cent over 9m’21 to Rs. 33.6 billion. Non markup expenses of the bank have increased by 27 per cent over 9m’21 while the cost to income ratio has improved from 60 per cent in 9m’21 to 57 per cent in 9m’22. Net provision for 9m’22 reflected reversals of Rs. 0.7 billion while infection ratio continued to reduce and is at 4.6 per cent with total coverage at 89.5 per cent.
FBL will continue to invest in expanding the footprints by network expansion and is planning to open another 50+ branches in Q4’22 with an objective to reach the branch network to 700+ by the end of this year. The bank will continue to reshape banking experience by improving the quality of customer service, providing innovative digital solutions and will continue to invest in modern technologies to improve digital offerings and customer experience.
FBL was incorporated in Pakistan on October 3, 1994 as a public limited company and its shares are listed on Pakistan Stock Exchange. FBL offers a wide range of modern banking services to all customer segments, i.e., Retail, Small & Medium Sized Enterprises, Commercial, Agri-based, and Corporate.
-
NBP net profit declines by 21% on high tax incidence in 9MCY22
National Bank of Pakistan (NBP) has declared 21 per cent decline in after tax profit due to high incidence during first nine months (January – September) 2022.
According to unconsolidated financial results submitted to the Pakistan Stock Exchange (PSX), NBP announced after tax profit at Rs19.16 billion for nine months period ended September 30, 2022 as compared with Rs24.14 billion in the corresponding period of the last year.
The bank declared earnings per share (EPS) at Rs9.01 for the nine months period ended September 30, 2022 as compared with EPS Rs11.35 in the same period of the last year.
Board of Directors of National Bank of Pakistan met on October 28, 2022 and not recommended any cash dividend, bonus issue/ right share or any other entitlement.
Bank officials said that taxation charge for the period amounted to Rs29.2 billion as against Rs16.1 billion during nine months of year 2021. They said that the Finance Act, 2022 brought in certain changes, which apart from increase in the statutory and super tax rate, also had a retrospective impact mainly due to ADR being below 50 per cent with reference to prior year’s earnings and has increased the effective tax rate from 40 per cent for nine months of 2021 to 60.4 per cent for nine months of 2022.
During nine months period ended September 30, 2022, the bank generated a gross interest income (GII) of Rs332.2 billion as against Rs166.5 billion for the similar nine months period of 2021. The Rs165.7 billion increase in GII is achieved through a robust volumetric growth in average interests earning assets coupled with the impact of higher average policy rate during this period that stood at 12.4 per cent as compared to 7 per cent during the same period last year.
Bank’s investments portfolio during nine months period ended September 30, 2022 averaged Rs2,427.5 billion (September 2021: Rs1,633.8 billion) and generated mark-up/interest income of Rs225.5 billion being Rs125.3 billion or 124.9 billion up against Rs100.3 billion for the corresponding period of last year.
This translates into average yield at 12.4 per cent (September 2021: 8.2 per cent). In the higher policy rate environment, the maturity profile of the bank’s investment book is skewed towards the shorter duration securities under available-for-sale category.
Similarly, placements, that averaged Rs126.9 billion (September 2021: Rs53.9 billion) generated a mark-up income of Rs10.8 billion (September 2021: Rs2.9 billion) at an improved yield of 11.3 per cent as compared to 7.1 per cent for September 2021.
For the nine months period ended September 30, 2021, the bank’s loan book averaged Rs1,341.9 billion and generated a mark-up income of Rs95.9 billion i.e. Rs32.5 billion or 51.4 per cent higher than Rs63.4 billion of the similar period last year. This significant growth was achieved through both, a volumetric growth, as well as the favorable Year on Year (YoY) rate variance. Pertinent to mention this high performance was achieved despite the fact that the bank carries a significant proportion of lower margin and non-performance public sector loans.
Likewise, on the back of higher average policy rate, the bank’s cost of funds for nine months period ended September 30, 2022 recorded a significant YoY increase and amounted to Rs251.6 billion as against Rs94.1 billion for corresponding nine month period of 2021.
The Rs159.5 billion or 167.4 per cent YoY increase is mainly recorded in cost of deposits that amounted to Rs141.9 billion as against Rs61.7 billion in the same period of the last year and the borrowings/repo costs by Rs75.8 billion to close at Rs101.5 billion. As compared to nine months ended September 2021, average non-remunerative current deposits increased impressively by Rs66.9 billion or 13.3 per cent to Rs569.6 billion.
Operating expenses of the bank for the period under review amounted to Rs54.8 billion which is 16.5 per cent higher YoY as compared to Rs47 billion of same period last year.
-
Standard Chartered Bank Pakistan PBT doubles during 9MCY22
KARACHI: Standard Chartered Bank Pakistan Limited (SCBPL) has posted a record profit before tax of PKR 36.4 billion, registering almost 100 per cent increase year on year. Performance was driven by strong income growth, as well as continued cost and risk discipline.
Overall revenue grew by 70 per cent to deliver a top-line of PKR 45.1 billion, with positive contributions from all segments. Despite a high inflationary environment and continuous investments in our infrastructure, operating expenses continue to be well managed through efficiencies and disciplined spending with an increase of 12 per cent from the same period last year.
Moreover, reversal of Covid-19 general provision, coupled with lower impairments and strong recoveries led to a net release of PKR 1.5 billion during the period against a net release of PKR 0.8 billion in loan impairments in the comparative period.
With a diversified product base, the Bank stands well positioned to cater for the needs of its clients. On the liabilities side, the Bank’s total deposits grew by PKR 108.0 billion (up 17 per cent), whereas current and saving accounts increased by PKR 119.0 billion (up 21 per cent) since the start of this year and comprise 95 per cent of the deposit base. Advances declined marginally since the start of this year and the Bank continues to monitor the portfolio in the prevailing economic environment as part of its strategy to build a profitable, efficient, and sustainable business.
The external environment remains challenging; however, we remain fully committed to delivering a sustainable growth for our shareholders, bringing the best-in-class services and solutions for our clients and playing our part in the growth story of Pakistan. Standard Chartered continues to make good progress against its strategic priorities.
The global network differentiates the Bank for its clients, bringing forth innovative solutions, product specialisation and structured offshore offerings. At all times the Bank strives to maximise the contribution to State Bank’s initiatives. In line with the State Bank’s efforts on financial inclusion, with enhanced digital offering, Standard Chartered is now able to reach more clients across the country and provide them with convenience of opening accounts as well as subscribing to products and banking services online. Overall, the Bank’s transformation journey stands well-curated, closely aligned with the Pakistan’s landscape and helping lift participation through digitization.
Sustainable finance along with digital solutions for clients and their ecosystem stay as areas of keen focus for the Bank. The Bank continues efforts under its initiative ‘Futuremakers by Standard Chartered’ initiative to tackle inequality and promote greater economic inclusion for young people in the community. Standard Chartered has also contributed towards emergency relief and rehabilitation of communities impacted by the recent floods that have caused devastation in Pakistan.
Commenting on the results, Rehan Shaikh, Chief Executive Officer, Standard Chartered Bank (Pakistan) Limited said, “I am pleased to share our results for the first three quarters of 2022 which clearly reflect strong foundations, enhanced productivity and good headway towards achieving our strategic priorities. The results give me the confidence that we have the right strategy to deliver real value to our clients, our investors and the communities where we operate. I am thankful to our clients and business partners for their ongoing trust in our capabilities and to our associates and colleagues for their commitment, passion and hard work in supporting the Bank in its journey.
We are investing heavily in our people, giving colleagues the skills they need to succeed, bringing in expertise in critical areas and evolving to a more innovative and agile operating model, as we strive to drive innovation and increase our operational efficiency further. This operational leverage allows us to create capacity to invest in the many exciting and potentially transformational initiatives as the Bank’s pivot to digital continues.
The external environment remains challenging; however we remain fully committed to delivering a sustainable growth for our shareholders, bringing the best in class services and solutions for our clients and playing our part in the growth story of Pakistan.”
With a strong Return on Equity (ROE) of 23.5 per cent for the period and a Capital Adequacy Ratio (CAR) of 17.7 per cent, the Bank remains well positioned for future growth.
-
Pak Suzuki Motors posts hefty loss of Rs2.5 billion in third quarter
Pak Suzuki Motors Company Limited (PSMC) on Wednesday declared massive loss of Rs2.5 billion for third quarter (July – September) 2022.
According to financial results submitted to Pakistan Stock Exchange (PSX), the company announced its third quarter of current year results where it posted loss after tax of Rs2.5 billion compared with profit of Rs443 million in the second quarter. The loss per share of the company came at Rs30.2 as compared with earnings per share Rs5.4 during the period under review.
The cumulative loss for nine months of current year (January – September 2022) to Rs2.5 billion with loss per share of Rs30.5/-.
Analysts at AKD Securities Limited said that earnings for the quarter are well below industry expectations due to finance costs going through the roof, clocking in at Rs4.8 billion for the quarter.
Revenue for the quarter has decreased by 54 per cent quarter on quarter (QoQ) to reach Rs29.8 billion, while also down by 41 per cent year on year (YoY).
The gross margin in third quarter of the current year clocked in at 5.2 per cent in contrast to the 4.4 per cent in the second quarter of the year. Despite significant currency depreciation, the company has hiked its prices in accordance, with the revised prices of June effective on some of the cars delivered, the analysts added.
They further said that finance costs have beaten expectations by a mile. With the Rs4.8 billion consisting of hefty compensation on late deliveries, likely north of Rs3 billion. The rest of the distance consists of exchange losses due to the revaluation of foreign trade creditors.
The company has sustained its strong other income in the quarter, clocking in at Rs1.1 billion owing to strong income from cash balance. The amount is significantly lower than the estimates, primary due to cash balance being diminished by the hefty payments on late deliveries.
-
MCB Bank declares highest ever quarterly profit before tax
LAHORE: MCB Bank Limited on Wednesday announced the highest ever quarterly profit before tax of Rs19.05 billion in the third quarter ended September 30, 2022.
With strong build up in core earnings, MCB’s Profit Before Tax (PBT) for the nine months period ended September 30, 2022 increased to Rs 51.6 billion against PBT of Rs 38.3 billion of corresponding period last year.
The Board of Directors of MCB Bank Limited (MCB) in its meeting under the Chairmanship of Mian Mohammad Mansha, on October 26, 2022, reviewed the performance of the Bank and approved the interim financial statements for the nine months period ended September 30, 2022.
The Board of Directors has declared a 3rd interim cash dividend of Rs. 5.0 per share i.e. 50 per cent, in addition to 90 per cent already paid, bringing the total cash dividend for the nine months period ended September 30, 2022 to 140 per cent.
Retrospective application of tax amendments along with higher tax rates for current period enacted through Finance Act, 2022 resulted into 62 per cent average tax rate for the nine months ended September 30, 2022 as compared to average tax rate of 41 per cent for the corresponding period last year. Profit After Tax (PAT) registered a decline of 12 per cent from Rs. 22.6 billion to Rs. 19.9 billion; translating into Earning Per Share (EPS) of Rs. 16.75 compared to an EPS of Rs. 19.03 in corresponding period last year.
On the back of strong volumetric growth in current account and favourable yield curve movements, net interest income for nine months period ended September 2022 increased by 29 per cent over corresponding period last year. Average current deposits of the Bank registered a growth of Rs. 91.6 billion (+17 per cent) YoY.
Non-markup income registered a growth of 41 per cent and reported a base of Rs. 20.25 billion against Rs. 14.38 billion in the corresponding period last year. The contribution from foreign exchange line, debit cards, trade business and home remittances remained strong during the period.
Despite exceptionally high inflation, impact of currency devaluation and continued investments in human resources, branch network and technological upgradation, operating expenses of the Bank were recorded at Rs. 30.52 billion, growing by a modest 16 per cent year on year, while the cost to income ratio significantly improved to 37.3 per cent from 42.5 per cent reported in corresponding period last year.
Proactive monitoring and recovery efforts led to a net provision reversal against non-performing loans (NPLs) which aggregated to Rs. 1,883 million for the period under review. Persistent focus on maintaining a robust risk management framework encompassing structured assessment models, effective pre-disbursement evaluation tools and an array of post disbursement monitoring systems has enabled MCB to effectively manage its credit risk. The Non-performing loan (NPL) base of the Bank was reported at Rs. 52.47 billion. The Bank has not taken FSV benefit in calculation of specific provision against its NPLs. The coverage and infection ratios of the Bank were reported at 85.14 per cent and 8.37 per cent, respectively.
On the financial position side, the total asset base of the Bank grew by 5.4 per cent and was reported at Rs. 2,076 billion. Gross advances registered a slight decline of Rs. 9 billion (-1 per cent), whereas the consumer lending book grew by Rs. 4.8 billion (+12 per cent).
During the period under review, MCB’s strategic objective of achieving growth in no-cost current account base was reinforced by an uncertain and volatile interest rate scenario, leading to persistent re-pricing gaps between the earning assets and liabilities. Hence, the Bank registered a growth of 21 per cent in non-remunerative deposits to close the period at Rs. 680.33 billion. CASA mix was reported at an industry leading level of 93.73 per cent which reflects customer loyalty earned by the Bank over 75 years through sustained provision of quality services.
MCB attracted home remittance inflows of USD 2,666 million, during the period under review with market share of 11.5 per cent as an active participant in SBP’s cause for improving flow of remittances into the country through banking channels.
During the ongoing year, the Bank celebrates successful completion of 75 years of its banking services to the nation. From modest beginnings, the Bank has transformed into a dynamic and innovative organization; overcoming a multitude of challenges along the way with resolve and fortitude. Recognition by the globally coveted Asia Money awards as ‘Pakistan’s Best Corporate Bank of the Year’ in 2022 is a testament to its legacy of posting consistent and exceptional performance for its stakeholders.
While complying with the regulatory capital requirements, the Bank’s total Capital Adequacy Ratio (CAR) is 17.6 per cent against the requirement of 11.5 per cent (including capital conservation buffer of 1.50 per cent as reduced under the BPRD Circular Letter No. 12 of 2020). Quality of the capital is evident from Bank’s Common Equity Tier-1 (CET1) to total risk weighted assets ratio which comes to 16.47 per cent against the requirement of 6 per cent. Bank’s capitalization also resulted in a Leverage Ratio of 5.62 per cent which is well above the regulatory limit of 3.0 per cent. The Bank reported Liquidity Coverage Ratio (LCR) of 203.85 per cent and Net Stable Funding Ratio (NSFR) of 134.66 per cent against requirement of 100 per cent.
Pakistan Credit Rating Agency re-affirmed credit ratings of MCB at “AAA / A1+” for long term and short term respectively, through its notification dated June 23, 2022.
The Bank on consolidated basis is operating the 2nd largest network of more than 1,600 branches in Pakistan and remains one of the prime stocks traded in the Pakistani equity market, with 2nd highest market capitalization in the industry.
-
HBL announces fall in net profit to Rs23.63 billion in nine months
Habib Bank Limited (HBL) on Wednesday announced 12.42 per cent decline in net profit to Rs23.63 billion for nine months period ended September 30, 2022 as compared with Rs26.98 billion in the same period of the last year.
Earnings per share (EPS) fell to Rs15.95 for the period as compared with Rs18.21 in the same period of the last year, according to consolidated financial accounts submitted to Pakistan Stock Exchange (PSX).
Board of Directors of Habib Bank Limited met on October 26, 2022 to approve the financial results for nine months and third quarter ended September 30, 2022. The board recommended an interim cash dividend for the third quarter ended September 30, 2022 at Rs1.50 per share i.e. 15 per cent. This is in addition to the interim cash dividend already paid at Rs3.75 per share i.e. 37.5 per cent.
READ MORE: HBL says allegations meritless
The decline in net profit of the bank may be attributed to massive increase in tax payment during the period. HBL paid an amount Rs31.97 billion as income tax during January – September 2022 as compared with Rs19.39 billion in the corresponding period of the last year.
Net mark-up / interest income of the bank grew to Rs116.04 billion in nine months period ended September 30, 2022 when compared with Rs97.15 billion in the same period of the last year.
READ MORE: HBL comes under scrutiny for assisting terror organizations
The bank booked huge earnings from foreign exchange income. The foreign exchange income of the bank sharply increased to Rs12.72 billion during January – September 2022 as compared with Rs2.91 billion in the same period of the last year.
However, the bank incurred massive loss from derivatives which recorded at Rs3.41 billion during the period under review as compared with Rs77 million in the same period of the last year.
Total income of the bank increased to Rs151.64 billion for nine months ended September 30, 2022 when compared with Rs122.87 billion in the same period of the last year.
Operating expenses of HBL rose to Rs90.93 billion during first nine months of the year 2022 when compared with Rs70.01 billion in the same period of the last year.
The bank declared profit before tax at Rs59.19 billion for nine months period ended September 30, 2022 when compared with Rs51.87 billion in the corresponding period of the last year.
-
Ismail Industries posts 150% growth in after tax profit for 1QFY23
KARACHI: Ismail Industries Limited has announced massive 150 per cent growth in its after tax profit for the first quarter (July – September) of the fiscal year 2022-2023.
According to consolidated financial results shared with the Pakistan Stock Exchange (PSX), the company announced profit after tax at Rs1.21 billion for the three months period ended September 30, 2022 as compared with Rs485 million in the corresponding period of the last year.
Earnings per share both basic and diluted is at Rs18.61 for the period under review as compared with Rs7.57 in the same period of the last year.
Ismail Industries Limited is one of the largest food companies in Pakistan, manufacturing a wide range of confectionery, biscuits, snacks and packaging films under the brand names of CandyLand, Bisconni, SnackCity and Astro Films respectively.
Board of Directors of the company met on October 24, 2022 approved the financial results and announced no interim cash dividend / bonus shares for the quarter ended September 30, 2022.
Net sales of the company grew to Rs21.94 billion for the quarter ended September 30, 2022 as compared with Rs14.57 billion in the corresponding quarter of the last fiscal year.
Cost of sales came at Rs15.45 billion for the quarter under review as compared with Rs10.43 billion in the same quarter of the last year.
The company recorded selling and distribution expenses at Rs1.74 billion for the quarter July – September 2022 as compared with Rs1.22 billion in the corresponding quarter of the last year.
Administrative expenses of the company were at Rs301 million for the period of three months ended September 30, 2022 as compared with Rs226 million in the same period of the last year.
Profit before taxation recorded at Rs1.46 billion for the quarter ended September 30, 2022 as compared with Rs709 million in the same quarter of the last fiscal year.