AKD Research - Off the Analyst's Desk |
Sep 02, 2020 |
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NBP: 1HCY20 Result Review (Above Expectation) |
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· National Bank of Pakistan (NBP) released its 1HCY20 earnings in early trading hours today where the bank reported an NPAT of PkR15.1bn (EPS: PkR7.08) as against PkR11.4bn (EPS: PkR5.34) in the same period last year. The result was significantly above our expectations. · On a quarterly basis, 2QCY20 earnings stood at PkR5.15/sh, +2.65xQoQ/54.5%YoY. · Net interest income recorded significant jump during the quarter, +92.0/59.3% QoQ/YoY as gross interest income held up (+0.3%QoQ) whereas markup expenses declined 27.0%QoQ. Gross yield jumps 44.0% in 2QCY20 vs. 23.0% in the previous quarter. It absorbed significantly higher provisioning expense of PkR11.6bn in 2QCY20 vs. PkR3.7bn in 1QCY20. · Non-interest income increases 19.0%QoQ but down 1.6%YoY well-supported by FX income (PkR2.0bn in 2QCY20 vs. PkR0.8bn in the previous quarter) and capital gains (PkR2.0bn in the current quarter vs. PkR1.3bn in 1QCY20). · Effective tax rate stands at 24.5% in 2QCY20 vs. 41.4% in the last quarter. |
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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