Karachi : MCB, UBL and BAHL sanguine announcements
Yesterday was an eventful day with major banks viz. MCB, UBL and 2nd tier BAHL announced results. Standard Capital thinks all three results were good since Standard Capital saws improving spreads of the banking sector amid lessening provisions. However, MCB’s operating expenses increased and hence results dampened market expectations. Nevertheless Standard Capital believes MCB to regain its earnings propensity in 1QCY12. Standard Capital remains positive in MCB, UBL and BAHL with CY12 PE of 7.7x, 5.5x & 6.3x respectively. UBL stood out with a whooping cash dividend of Rs 6/share.
Reasonable rise in MCB Bank earnings
The profit of MCB Bank Limited (MCB) for the period ended 31st December 2011 hiked by 15.13 % to Rs19.42 billion (EPS: Rs23.23) as compared to Rs16.87 billion (EPS: Rs20.18) in the same period of last year. According to financial results announced on Wednesday, higher net interest and non‐interest incomes remained key drivers. MCB also announced a final cash dividend of Rs3 per share, taking the total cash dividend of Rs12 per share for 2011. Besides, MCB announced a 10 % bonus issue. Interest income of enlarged by 24.3% to Rs68.14 billion for 2011 against Rs54.82 billion recorded in the same period of last year. On the other side, interest expenses hiked by 31.31 % to Rs23.62 billion compared to Rs17.98 billion in 2010. That’s why, net interest income increased by 20.9 % to Rs44.52 billion against Rs36.83 billion in 2010.MCB reported Rs4.16 billion as non‐performing loans against advances for 2011 versus Rs6.26 billion in 2010. The archless heels for MCB remains operating expenses increased by 28.21 % to Rs16.9 billion for the period ended 2011 versus Rs13.24 billion in 2010.
UBL profit rocket 41%
United Bank Limited (UBL) has announced its financial result for the year ended December 31, 2011 which states that profit after taxation of the Bank increased by 41.4 % to Rs15.5 billion as compared to Rs10.96 billion in the same period of last year translating into earning per share of Rs12.66 for 2011 versus Rs9.12 in 2010. UBL also announced final cash dividend of Rs6/share which is in addition of Rs1.5/share, taking cumulative Dividend to Rs7.5/share also accompanied with the results. Key highlights of the CY11 results include 15 % growth in net interest income, 8.9 % decline in total provisions possibly due to FSV benefit and surge in non‐interest income by 26.1 %.Striking earnings growth mainly stemmed from sharp improvement in net interest income (NII), increase by 15 % to Rs39.42 billion. Thanks to better return on assets amid higher interest rates. Bank interest earned hiked by 18.9 % to Rs70.45 billion for 2011 against Rs59.27 billion in 2010 mainly due to higher lending rate. Similarly, interest expenses increased by 24.12 % to Rs31.02 billion compared to Rs24.99 billion in 2010.Non‐interest income surged by 26.05 % to Rs12.71 billion in 2011 also supported bottom‐line, owing to overall improvement in trade activities. Similarly, operating expenses remained higher by 9.6 % to Rs20.63 billion versus Rs18.82 billion in 2010.
Bank Al‐Habib issued Rs 2.5/share cash dividend, 15% Bonus
Bank Al‐Habib Ltd (BAHL) has posted a higher profit after tax of Rs 4.5 billion for the year ending December 31, 2011 and announced a final dividend of Rs 2.5/share and 15 % bonus. According to financial results of the bank to Karachi Stock Exchange on Tuesday, the pre‐tax profit also surged to Rs 7.2 billion compared to Rs 5.7 billion in 2010. The EPS improved to Rs 5.16 during the year under review compared to Rs 4.10 in the same period last year.
Standard Capital maintains BUY in MCB, UBL and Hold in BAHL.
