AKD Research - Off the Analyst's Desk |
Aug 19, 2020 |
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HMB: 1HCY20 Result Review (Above Expectation) |
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· Habib Metropolitan Bank Limited (HMB) announced its 1HCY20 results, reporting an NPAT of PkR4.3bn (EPS: PkR3.97), +27.7%YoY. 2QCY20 earnings clocked in at PkR2.48/sh vs. PkR/sh 1.48/1.64 in 1QCY20/2QCY19. The result came-in above our expectations. · The surprise in earnings is attributable to FX income exceeding expectation, being recorded at PkR1.2bn for 2QCY20 vs. PkR0.8bn in the previous quarter. It overshadowed the decline in fee income of the bank (down 15.7%QoQ) being sensitive to trade activity in the country. · Gross yield of the bank stood at 32.4% compared to 21.5/26.0% in 1QCY20/2QCY19 primarily as interest rate cuts bring bank’s PIB book into play. As a result net interest income registered a growth of 45.0%QoQ/49.2%YoY. · Non-markup expenses were down 3.7%QoQ, which together with growth in total income pulled down cost-to-income ratio to 39.0% in 2QCY20 vs. 53.7/55.3% in 1QCY20/2QCY19.
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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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