NBP_Analyst Briefing Takeaways, (AKD, Off the Analyst's Desk, Feb 28, 2020)
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NBP: Analyst Briefing Takeaways |
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National Bank of Pakistan (NBP) held its analyst briefing today to discuss CY19 results. To highlight, the bank reported CY19 earnings of PkR16.6bn (EPS: PkR7.8) vs. PkR20.0bn (EPS: PkR9.4) in the same period last year. During the last quarter of CY19, the bank surprised with an earnings of PkR10mn, down 99.8%QoQ/99.7%YoY where, · Flat Net Interest Income (on account of certain markup suspension on loans classified), · Exorbitant increase in administrative costs (due to provisions booked against employee related contingencies), and · Higher provisioning costs (due to general provision booked against certain credit portfolios and specific provisions) contributed to earnings disappointment. The bank recovered PkR1bn from OMNI portfolio and expects a larger recovery in CY20. Consequently, gross yield of the bank stood at 25.1% in 4QCY19 vs. 26.3% in the previous quarter whereas owing to recording of capital gains, contribution from NFI to total income improved to 37.8% in the last quarter vs. 29.6% in the 3QCY19. On dividend, the bank looks to preserve capital to deal with any adverse decision relating to pension case (Next hearing: Mar 5, 2020). The management plans to optimize its overseas branch network in CY20, closing some of the branches in the process. Focus on resolution of internal matters will continue in the near term. TSA implementation would not happen in the near term however when applied would be positive for NBP since SBP could not handle ~18K public accounts as per management. |
National Bank of Pakistan (the Bank) is a Pakistan-based commercial bank. The Bank provides commercial banking services, including commercial loans, investment advisory, asset management, global remittances, agency services, forex, leasing, modarba, underwriting, brokerage, and other banking and financial services. The Bank offers retail products, which include saving deposits, current deposits, housing finance, personal loans and agricultural loans; transaction banking services, which include cash management, trade finance and services, and remittance management; Corporate Finance services, which include deposits, structured corporate finance, capital advisory, investment advisory and trade finance; Treasury services, which include forex and financial derivatives, and government to person (G2P) services, which include pension payments, tax and fee collection, and other payments. The Bank serves its customers in over 20 countries.
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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