ABL posts 10pc profit growth for first half

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KARACHI: ABL has posted 10 percent growth in profit after tax to Rs7.24 billion for the first half of current financial year as compared with Rs6.59 billion in the corresponding half of the last year.
Analysts at Arif Habib Limited said that the profit was marginally above expectations.

The earning per share (EPS) for the period under review also increased to Rs6.33 from previous year’s Rs5.76.
Higher capital gains and FX income led the YoY uptick in earnings whereas on a sequential basis, lower capital gains and Net Interest Income contributed to the QoQ decline in profitbility.
The bank also announced a dividend of PKR 2.00/share bringing total dividend for 1HCY18 to PKR 4.00/share.
Net Interest Income of the bank settled at PKR 15.8bn, declining 3 percent YoY / 3 percent QoQ as the bank’s interest expense outpaced the increase in mark-up income.

NFI of the bank jumped up significantly: 48 percent YoY during 1HCY18. The bank continued booking a strong capital gain of PKR 793mn for 2QCY18, bringing total capital gain for 1HCY18 to PKR 2.1bn (6.4x higher YoY). Fee income also portrayed a 6.6 percent YoY increase during 1HCY18 in addition to a ~2x increase in FOREX income.
Net reversals for the bank continued, clocking in at PKR 881mn for 1HCY18, 25 percent YoY higher,
OPEX clocked in at PKR 11.5bn, increasing 12 percent YoY as higher admin expenses for the bank led the uptick. On a sequential basis OPEX growth was restricted to 4 percent growth. However cost/income increased from 48.7 percent in 1Q to 52 percent in 2Q.
Effective tax rate was set at 39.3 percent during 1HCY18 compared to 42.4 percent SPLY.

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