BAHL_3QCY21 Result Review (above expectation), (AKD, Off the Analyst's Desk, Oct 27, 2021)
AKD, Off the Analyst's Desk
BAHL_3QCY21 Result Review (above expectation)
- Bank AL Habib Limited (BAHL) announced its 9MCY21 results today where the bank reported earnings of PkR13.8bn (EPS: PkR12.6) compared to PkR13.2bn (EPS: PkR12.0) in the same period last year. The result was above our expectation.
- For 3QCY21, earnings stood at PkR4.43/sh, +6.6%QoQ/ down 21.0%YoY where major deviation from our estimates occurred on account of higher than expected FX income (3QCY21: PkR848mn vs. PkR399mn in the previous quarter) and lower provisioning expense.
- Net Interest Income remained flat on a sequential basis, possibly a result of contraction in margins as indicated by Gross yield standing at 45.8% in 3QCY21 compared to 49.1% in the previous quarter. This puts impetus on non-funded income for sequential growth, which realized an uptick of 21.6%QoQ – a product of 12.4% growth in fee income and FX (3QCY21: PkR848mn vs. PkR399mn in the previous quarter).
- Effective tax rate for the quarter stood at 39.4% - flat on a sequential basis.
AKD Research
Bank AL Habib Limited is a banking company. The Bank operates through Retail banking, Commercial banking, Retail brokerage and geographical segments. Its Retail banking consists of retail lending, deposits and banking services to private individuals and small businesses. The retail banking activities include provision of banking and other financial services, such as current and savings accounts, and credit cards to individual customers, and small and medium enterprises (SMEs). Its Commercial banking represents provision of banking services, including treasury and international trade-related activities to corporate customers, multinational companies, and government and semi government departments and institutions. Its Retail brokerage activities include the business of equity, money market and foreign exchange brokerage, equity research, and corporate financial advisory and consultancy services. It operates in four geographic regions: Pakistan, the Middle East, Asia Pacific and Africa.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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