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Karachi: United Bank Limited (UBL) board meeting to for its 9MCY11 results is scheduled for 10:00 am in Abu Dhabi.
According to Arif Habib Limited, the bank is expected to post 3.7% QoQ growth in bottom-line during the 3QCY11 with net earnings to reach PKR 3,557mn (EPS: PKR 2.91) compared to PKR 3,432mn (EPS: PKR 2.80) in the corresponding period last year. This will take cumulative net income for the 9MCY11 to PKR 10,262mn, a rise of 27.3% YoY. The 18.4% YoY jump in Net interest income is expected to be substantially diluted on account of 16.7% YoY rise in the bank’s total provisioning. The bank’s operating expenses are anticipated to witness a rise of 14.8% YoY to reach PKR 14,759mn. The non interest income is estimated to register an increase of 17.1% YoY, which is projected to be supported by 1.9times jump other operating income and 4% YoY higher fee and commission income.
At the last closing price of PKR 55.7/share, UBL is trading at a CY11 P/BV and a dividend yield of 0.8x and 10%, respectively. The scrip is offering an upside of 43% to Arif Habib’s June-12 target price of PKR 79.7/share. BUY!
| Financial Highlights | PKR mn | |||||
| 9MCY11 | 9MCY10 | YoY | 3QCY11 | 2QCY11 | QoQ | |
| NII | 29,697 | 25,081 | 18.4% | 10,436 | 10,155 | 2.8% |
| Provisions against NPLs | 6,738 | 5,255 | 28.2% | 2,254 | 2,279 | -1.1% |
| Fees and commission | 4,905 | 4,710 | 4.1% | 1,625 | 1,681 | -3.3% |
| Dividend income | 472 | 447 | 5.5% | 150 | 221 | -32.1% |
| Non Interest income | 8,541 | 7,294 | 17.1% | 2,660 | 2,872 | -7.4% |
| Admin Expenses | 14,759 | 12,860 | 14.8% | 5,084 | 5,034 | 1.0% |
| PBT | 15,702 | 12,925 | 21.5% | 5,473 | 5,217 | 4.9% |
| PAT | 10,262 | 8,060 | 27.3% | 3,557 | 3,432 | 3.7% |
| EPS | 8.38 | 6.58 | 27.3% | 2.91 | 2.80 | 3.7% |
| Source: Company financials and AHL Estimates | ||||||