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EUR 9.34 For Business Accounts Only

UBL_1HCY20 Result Review, (AKD, Off the Analyst's Desk, Aug 06, 2020)

AKD Research - Off the Analyst's Desk

Aug 06, 2020

UBL: 1HCY20 Result Review                                                           (Inline)       

·      United Bank Limited (UBL) announced its 1HCY20 results today, reporting an earnings of PkR10.73bn (EPS: PkR8.94) during the period, +17.0%YoY. 2QCY20 earnings clocked in at PkR5.81bn (EPS: PkR4.96) vis-à-vis PkR/sh 4.19/3.98 in 2QCY19/1QCY20. The result came-in as per our expectation.

·      As expected, provision came in higher on a sequential basis (2QCY20: PkR6.2bn, +73.1%QoQ/91.4%YoY) which could possibly include loss reserve for potential downgrades in view of COVID-19 (as seen in HBL). It partially offset the 25.2%QoQ jump in Net interest income due to repricing gains (Gross Yield in 2QCY20: +6ppt to 50.7% from last 8qtrs avg.)

·      Fee income declined 25.0/34.6% QoQ/YoY as full impact of lockdown and SBP relief measures reflected in the performance. However, it was compensated by PkR1.05bn FX income (+36.2%QoQ) and positive contribution by associates (PkR192mn in 2QCY20 vs. loss of PkR148mn in the previous quarter).

·      Administrative costs remained flat at PkR10.6bn (+3.1%QoQ) despite higher avg. PkR/US$ rate in 2QCY20 for overseas expenses.

Provider
AKD Securities Limited
AKD Securities Limited

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.

Analysts
Hamza Kamal

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