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Karachi: UBL: Profitability to rise by 27% YoY in 1QCY12
United Bank Limited (UBL) board meeting is scheduled for April 26, 2012 to consider bank’s 1QCY12 results.
According to Arif Habib Limited expects the bank to post net income of PKR 4,155mn (EPS: PKR 3.39) in 1QCY12 compared to PKR 3,273mn (EPS: PKR 2.67) in the corresponding period last year, depicting a 27% YoY growth. UBL’s net interest income is anticipated to augment by 7% YoY to PKR 9,735mn as average earning assets show a stellar growth primarily through investments, which has grown by 30% in CY11. The bank’s provision is expected to contract by 39% YoY as growth in NPLs is expected to further slowdown after augmenting by 5% in CY11. The non-funded income Arif Habib Limited estimates will likely show a 12% YoY growth to PKR 3,360mn and operating income is expected to augment by 15% YoY.
| Financial Highlights (PKRmn) | 1QCY12 | 1QCY11 | YoY |
| Mark-up/ return/ Interest earned | 17,745 | 16,702 | 6.2% |
| Mark-up/ return/ Interest expense | 8,010 | 7,597 | 5.4% |
| Net mark-up/ Interest Income | 9,735 | 9,105 | 6.9% |
| Total Provisions | 1,425 | 2,339 | -39.1% |
| Total Non Mark-up/ Interest Income | 3,360 | 3,009 | 11.7% |
| Operating Cost | 5,464 | 4,763 | 14.7% |
| Profit before Tax | 6,206 | 5,012 | 23.8% |
| Tax | 2,051 | 1,739 | 17.9% |
| Net income | 4,155 | 3,273 | 27.0% |
| EPS | 3.39 | 2.67 | |
| Source: Company Accounts and AHL Research |
PSMC: Profitability to continue on upward trajectory
The Board of Directors of Pak Suzuki Motor Company Limited (PSMC) is scheduled to meet on April 26, 2012 to approve the financial results for 1QCY12. Arif Habib Limited expects the company to earn profit after tax (PAT) of PKR 387mn (EPS: PKR 4.70) in 1QFY12, representing a 4.2x YoY jump from 1QCY11’s PAT of PKR 91mn (EPS: 1.11). Arif Habib Limited believes this increase in profitability is primarily due to an estimated 47% YoY improvement in the Company’s top-line to PKR 18.5bn, brought about by a 31% YoY growth in sales volume to 30,642 units and a 9% YoY hike in prices. Gross profit of the Company in 1QCY12 is expected to be around PKR 760mn, translating into a gross margin of 4.2%, as compared to 2.9% in the preceding quarter and 2.7% in the corresponding period last year.
| Financial Highlights (PKR million) | 1QCY12 | 1QCY11 | YoY |
| Sales | 18,529 | 12,570 | 47% |
| Cost of sales | 17,769 | 12,227 | 45% |
| Gross profit | 760 | 343 | 122% |
| Operating expenses | 364 | 233 | 56% |
| Finance cost | 4 | 5 | -3% |
| Profit before tax | 595 | 220 | 170% |
| Profit after tax | 387 | 91 | 323% |
| EPS (PKR) | 4.70 | 1.11 | |
| Source: Company Accounts and AHL Estimates | |||