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Tag: financial results

  • NBP declares 11.12pc decline in after tax profit to Rs11.1 billion

    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.

  • HBL declares 51 percent decline in net profit during first quarter

    HBL declares 51 percent decline in net profit during first quarter

    KARACHI: Habib Bank Limited (HBL) on Thursday declared 51 percent decline in net profit during the first half ending June 30, 2019.

    The profit after tax of the bank declined to Rs3.927 billion during first half (January – June 2019) as compared with Rs8.128 billion in the corresponding half of the last year.

    According to half yearly financial results submitted to Pakistan Stock Exchange (PSX), the bank said that its results for the first half 2019 were impacted by two specific market events.

    The further 15 percent depreciation in the value of rupee, which was impacted Rs 6 billion.

    A 9 percent fall in the continuously declining PSX, which was impacted Rs1.9 billion.

    The incremental impact of these, compared to the first half of 2018, is Rs4.8 billion. “Resultantly, reported profit before tax of Rs9.9 billion for first half 2019 is Rs4.2 billion or 30 percent lower than for the same period last year.”

    The bank further said that the retrospective imposition of super tax on 2017 earnings has increased the effective tax rate for the half year to 60 percent.

    Profit after tax for the first half 2019 is therefore Rs3.9 billion compared to Rs 8.1 billion for the first half of 2018.

    Earnings per share for the period under review are at Rs 2.53.

    The bank said that its core domestic business continued to grow steadily. Total deposits increased by 6.8 percent, crossing the Rs. 2.0 trillion mark, with half the growth coming from current accounts.

    The domestic mix of current accounts improved by 66bps to 38.2 percent while the CASA ratio of 85.2 percent was just below December 2018 levels of 85.4 percent.

    Domestic advances increased marginally over December 2018 levels but the strong run-up in 2018 resulted in average advances for the first half 2019 being 25 percent (Rs 180 billion) higher than in the first half of 2018.

    The Consumer business continued its steady growth with average consumer loans increasing by 17 percent over the first half of 2018.

    Overseas deposits and advances both increased in US dollar terms with the impact more pronounced in Rupees.

    HBL’s total deposits thus grew by 7.8 percent over December 2018 to Rs 2.3 trillion with net advances of the Bank up by 5 percent to Rs 1.1 trillion.

    Average domestic deposits, driven by Rs 62 billion growth in average current accounts, increased by around Rs 100 billion.

    The average balance sheet thus increased by Rs 135 billion (6 percent). The net interest margin in the domestic business improved by 59 bps as earning asset yields improved significantly due to re-pricing of loans and rollover of maturing investments at higher rates.

    Domestic net interest income for the first half of 2019 is thus 18 percent higher than for the same period last year.

    With a 14 percent improvement from the international business in Dollar terms, total net interest income for HBL increased by 20 percent, to Rs 47.7 billion.

    Fee income continued to improve, increasing by 16 percent over the first half 2018, to Rs 10.7 billion as international fees were restored to their prior year levels.

    Domestic fee growth of 15 percent was robust, achieved due to strong performances from the card related business, trade fees and investment banking income.

    The sale of previously impaired equities resulted in a realized capital loss of Rs 1.8 billion, but with no overall P&L impact.

    “Excluding this, income from treasury related activities increased to Rs 3.4 billion in the first half of 2019 compared to Rs 2.8 billion in the same period last year,” the bank said.

    Core non mark-up income for the first half of 2019, excluding the revaluation loss on the Bank’s open position and the capital loss described above, increased by 13 percent YoY to Rs 15.8 billion.

    Headline administrative expenses for the first half of 2019 increased by 24 percent to Rs 45.0 billion. This was largely driven by an increase in the ongoing remediation, legal and regulatory costs related to the Bank’s New York branch.

    The substantial impact of Rupee depreciation on international expenses and the incremental cost of HBL’s new office building also contributed to the expense growth.

    Excluding these major items, expenses increased by 11 percent.

    Total provisions for the first half of 2019 are Rs 511 million. Net reversals in the domestic business continue, although they are considerably lower, notwithstanding an improved recovery performance.

  • MCB Bank declares Rs10.67 billion net profit for first half

    MCB Bank declares Rs10.67 billion net profit for first half

    KARACHI: MCB Bank has declared Rs10.67 billion net profit for first half (January – June) 2019 as compared with the profit of Rs9.76 billion in the same half of the last year.

    According to financial results for the period January – June 2019 shared with Pakistan Stock Exchange (PSX) on Wednesday, the bank declared 11 percent growth in net profit for the first half of the current fiscal as compared with the corresponding half of the last year.

    The bank announced earnings per share at Rs9.01 as compared with Rs8.24.

    The profit before tax of the bank also grew to Rs18.24 billion during the period under review as compared with Rs15.99 billion in the same period of the last year.

    Total income of the bank for the period was stood at Rs35.75 billion for the first half ended June 30, 2019. Net mark-up income / interest income of the bank was recorded at Rs27.8 billion. Non-mark-up income of the bank was recorded at Rs7.9 billion.

    The expenses of the bank were recorded at Rs16.75 billion as compared with Rs17.51 billion. The provision for write-offs was at Rs759 million.

  • UBL announces 52 percent increase in net profit in first half

    UBL announces 52 percent increase in net profit in first half

    KARACHI: United Bank Limited (UBL) has recorded 52 percent growth in its net profit for first half ended June 30, 2019.

    According to financial results for the period January – June 2019 shared with Pakistan Stock Exchange (PSX), the bank announced Rs9.54 billion profit after tax for the first half ended June 30, 2019 as compared with Rs6.27 billion in the same half of the last year.

    The bank announced earnings per share at Rs7.8 as compared with Rs5.12.

    The profit before tax of the bank also grew to Rs18 billion during the period under review as compared with Rs10.6 billion in the same period of the last year.

    Total income of the bank for the period was stood at Rs42 billion for the first half ended June 30, 2019. Net mark-up income / interest income of the bank was recorded at Rs29.9 billion. Non-mark-up income of the bank was recorded at Rs12.14 billion.

    The expenses of the bank were recorded at Rs19.568 billion as compared with Rs18.8 billion. The provision for write-offs was at Rs4.49 billion.

    The rise in profitability was mainly no provision for pension liability this year as the bank paid Rs8.4 billion in the first half of the last year.

  • Pak Suzuki declares huge loss of Rs1.52 billion in first half despite multiple increases in prices

    Pak Suzuki declares huge loss of Rs1.52 billion in first half despite multiple increases in prices

    KARACHI: Pak Suzuki Motors (PSMC) has declared massive loss of Rs1.52 billion for the first half ended June 30, 2019 despite multiple increase in prices of vehicles during the period.

    According to half yearly financial results submitted to Pakistan Stock Exchange (PSX), the company posted net loss of Rs1.525 billion as compared with growth of Rs1.29 billion in the corresponding half of the last fiscal year.

    According to Topline Securities, Pak Suzuki Motors posted loss per share (LPS) of 6.62 against earning per share (EPS) of Rs 4.78 for the quarter April to June 2019 in same period last year.

    Significant decline in earnings was mainly due to massive reduction in gross profit margins by 5ppts.

    During outgoing quarter revenue of the company witnessed a mere 1 percent YoY growth to Rs31 billion despite multiples hikes in prices owing to declining volumetric sales in said period.

    Gross profit margin were down by 5ppts, due to significant PKR depreciation against USD by 14 percent in 2QCY19 coupled with inflationary environment leading to high input costs.

    § Distribution cost has increased by 56 percent YoY due to higher transportation costs (from factory to dealer) which is currently borne by the company.

    The company has booked a tax reversal (higher tax recorded in previous accounts) owing to change in turnover expectations.

    Other Income has witnessed decline of 76 percent YoY mainly due to low income from bank deposits as the company has reduced cash balance in its accounts after decline in advance payments from customers.

    Finance cost has increased by 1.8x YoY due to addition of short term borrowings in the outgoing quarter.

    Key risks to company includes 1) Further PKR depreciation 2) slowdown in economy and 3) Entry of new auto players resulting in stiff competition.

  • National Bank declares 14.5 percent decline in after tax profit on imposition of super tax

    National Bank declares 14.5 percent decline in after tax profit on imposition of super tax

    KARACHI: National Bank of Pakistan (NBP) has declared 14.5 percent decline in after tax profit for the first quarter ended March 31, 2019 due to imposition of super tax.

    Meeting of the Board of Directors (BoD) of NBP was held on Wednesday at Bank’s Head Office in Karachi in which the BoD approved the financial statement of the Bank of the quarter ended March 31, 2019.

    The after tax profit for the quarter ended March 31, 2019 was at Rs4.2 billion, which was 14.5 percent lower when compared with Rs4.9 billion in the corresponding period of the last year.

    The bank attributed the decline in profit to imposition of super tax which was imposed through Finance Supplementary (Second Amendment) Act, 2019 for the tax year 2018 (financial year ended December 31, 2017.

    Pre-tax profit of the bank was at Rs8.7 billion for the period under review as against Rs7.6 billion for the corresponding quarter of 2018, registering 14.5 percent increase.

    The bank earned mark-up/ interest income amounting to Rs45.8 billion which is 45.9 percent higher than Rs31.4 billion earned during the corresponding period last year.

    This growth is attributed to the increase in discount rate, as well as a volumetric growth in both investment and advances, YoY.

    Also, the Bank’s non mark-up / interest income increased by 40.2 percent YoY and amounted to Rs8.3 billion.

    The bank’s unconsolidated pre-provision profit amounted to Rs10.98 billion which is 45.2 billion higher than Rs7.6 billion for the corresponding period o the last year.

    Earnings per share amounted to Rs1.97 as against Rs2.30 for the corresponding quarter ended March 31, 2018.

    The total assets of the bank as at March 31, 2019 stood at Rs2,401.8 billion as compared with Rs2,798.6 billion as on December 31, 2018, registering decline of 14.2 percent.

    Gross advances of the bank amounted to Rs1,046.1 billion which is slightly lower than Rs1,059.5 billion as on December 31, 2018.

    However, YoY, total advances registered increase by Rs176.6 billion or 20.3 percent as compared to Rs869.5 billion as of March 31, 2018.

    Total deposits of the bank as on March 31, 2019 amounted to Rs1,778.7 billion, lower by Rs232.7 billion (11.6 percent) as against Rs2,011.4 billion as of December 31, 2018. The drop was observed due to withdrawal of deposits by certain financial institutions. Customer deposits that from the core of bank’s funding pool however remained stable.

  • Byco Petroleum posts 80 percent decline in net profit

    Byco Petroleum posts 80 percent decline in net profit

    KARACHI: Byco Petroleum Pakistan Ltd. has posted around 80 percent decline in net profit for nine-month period ended March 31, 2019, according to financial results presented to Pakistan Stock Exchange (PSX) on Tuesday.

    Earnings per share of the company also fell to Rs 0.14 compared to Rs 0.66 last year.

    The company attributed the decline in profit that the oil refining sector in Pakistan experienced a challenging business environment in the first nine months of the current fiscal year marked by the economic slowdown, volatile oil prices, devaluation of the Rupee, and weak upliftment of furnace oil (FO).

    The company’s gross sales increased by 32 percent from the corresponding period of the prior year to Rs 182.9 billion. Net sales increased by 35 percent to Rs 145.2 billion.

    Byco Petroleum’s gross profits fell 58 percent to Rs 3.03 billion in the first nine months of the ongoing fiscal year.

    Operating profit for the period came in at Rs 2.30 billion compared to Rs 5.85 billion in 2018.

    The company earned a net profit of Rs 719.6 million compared to Rs 3.53 billion a year earlier.

    Amir Abbassciy, CEO of Byco Petroleum Pakistan Limited, said commented on the financial result: “Despite many factors which have been working against us, including oil prices, currency weakness, and an evolving fuel mix for the nation, we are hopeful for better results in the near term.”

    Byco expresses its deepest appreciation and gratitude to the government, its shareholders, customers, and strategic partners for offering cooperation in this period.

    The company reiterates its resolve to manage this difficult time to the best of its abilities and will continue to strive to deliver optimum results for its stakeholders.

  • Meezan Bank posts 49 percent growth in quarterly net profit

    Meezan Bank posts 49 percent growth in quarterly net profit

    KARACHI: Meezan Bank Limited has declared 49 percent increase in profit after tax to Rs2.85 billion for the quarter ended March 31, 2019 as compared with Rs1.19 billion in the same period of the last fiscal year.

    The Earnings per Share (EPS) – on enhanced capital increased to Rs. 2.44 per share, said a statement on Monday.

    The Board of Directors of Meezan Bank Limited in its meeting approved the condensed interim unconsolidated financial statements of the Bank and its consolidated financial statements for the quarter ended March 31, 2019.

    The meeting was presided by Mr. Riyadh S. A. A. Edrees – Chairman of the Board and Faisal A. A. A. Al – Nassar – Vice Chairman of the Board, was also present.

    The Board has approved 10 percent interim cash dividend (Rs 1.00 per share) and 10 percent bonus shares in the meeting. Quarterly cash dividend has been approved for the first time in the history of the Bank and is in keeping with the Board desire to ensure that investors in Meezan Bank are well looked after. The Bank has maintained an unbroken payout record since the Bank’s listing on Stock Exchange in the year 2000.

    The growth in profitability was driven by an increase of 57 percent in net spread primarily due to the Bank’s focus on maintaining a good quality high yield earning assets portfolio.

    Profit paid to depositors also doubled, as a result of increase in deposits and increase in depositors’ profit rates. The fees and commission income of the bank grew by 18 percent driven by an increase in trade business volume handled by the bank.

    Administrative and operating expenses increased by 24 percent primarily due to rising inflation, rupee devaluation and increase in costs associated with new branches – an investment in the future.

    However, the rise in expenses was sufficiently absorbed by the growth in the bank’s income resulting in improvement in the banks income expense ratio. The bank added 16 new branches to its network during the quarter bringing the total number of branches to 676 in 189 cities.

    The Bank is now the 7th largest bank in terms of branch network as well as in terms of deposit base.

    The investments portfolio increased to Rs219 billion from Rs124 billion in December 2018 – a growth of 77 percent. During the quarter, a consortium led by Meezan Bank successfully closed Pakistan’s first-ever energy Sukuk issued by the Power Holding Private Limited, a company wholly owned by the Government of Pakistan (GoP).

    The Sukuk is guaranteed by the GoP and is eligible for SLR for the purposes of the State Bank of Pakistan (SBP). The Bank is the largest investor in this Sukuk with a participation of Rs. 85 billion.

    The Islamic financings and related assets portfolio closed at Rs494 billion with an ADR of 64 percent. The bank maintained its financing exposure in all sectors and continued to actively pursue growth in Small and Medium Enterprise (SME) / Commercial and Consumer segment.

    The NPL ratio and NPL coverage ratio stood at 1.4 percent and 137 percent respectively. The bank remains a well-capitalized institution with Capital Adequacy Ratio of 15.5 percent.

    The VIS Credit Rating Company Limited (formerly JCR-VIS Credit Rating Company Limited), in 2018, assigned the Bank an Entity Rating of ‘AA+’ (Double A Plus) for the Long Term and ‘A1+’ (A-One Plus) for the Short Term with stable outlook.

    The Subordinated Tier II Sukuk and Additional Tier I Sukuk of the Bank has been assigned a credit rating of ‘AA’ (Double A) and ‘AA-’ (Double A Minus) respectively. These ratings represent sound performance indicators of the Bank.

  • PSX’s net profit falls by 10.6pc on elimination of tax on bonus shares

    PSX’s net profit falls by 10.6pc on elimination of tax on bonus shares

    KARACHI: The earning of Pakistan Stock Exchange (PSX) during first nine months of current fiscal year fell by 10.6 percent due to elimination of tax on bonus shares, which results no dividend received by the capital market.

    The stock market on Friday released its financial report and said that its earnings were Rs59 million during July-March 2019 as compared with Rs66 million in the corresponding period of the last fiscal year.

    The PSX said that foreign investors had been balancing their portfolios since the net buy position for the third quarter 2019 stood at over $31.3 million. “This indicates their optimism about the long term prospects of Pakistan’s equity market,” it said.

    “However, during the nine months period ended March 31, 2019, the foreign investors off-loaded securities worth $373 million which was absorbed by the local investors,” it added.

    During the period, the Finance Supplementary (Second Amendment) Act, 2019 was enacted in March 2019 and some notable features favorable to the capital market include abolishment of the advance tax at 0.02 percent on purchase and sale value of shares traded in lieu of tax on commission applicable to members of the stock exchange, loss on disposal of securities would be allowed to carry forward to the next year and subsequent two tax years, to be offset against capital gain earned in those years and effective July 01, 2019, for companies availing group relief, tax on inter-corporate dividend has been reduced to the extent of percentage of shareholding the recipient of dividend has in the distributing company.

    PSX recorded a pre-tax profit of Rs64 million for the nine-month period ended March 31, 2019 against Rs122 million for the corresponding period of the last fiscal year, posting 48 percent decline.

    During the year, PSX implemented revised fee structure for the annual listing fee. This structure resulted increase in revenue by Rs113 million during first nine months of current fiscal year.

  • Shell Pakistan declares 81 percent decline in net profit

    Shell Pakistan declares 81 percent decline in net profit

    Shell Pakistan Limited announced a significant 81% decline in its profit after tax, as revealed by the company’s financial results for the quarter ended March 2019, approved by the board of directors in their meeting held on Tuesday.

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