Report
EUR 8.61 For Business Accounts Only

UBL_9MCY20 Result Review, (AKD, Off the Analyst's Desk, Oct 26, 2020)

UBL: 9MCY20 Result Review (Below Expectation) · United Bank Limited (UBL) announced its 9MCY20 results where the bank reported an NPAT of PkR15.3bn (EPS: PkR12.80) as against PkR14.3bn (EPS: PkR11.62) in the same period last year. The earnings clocked in slightly below our expectation. · For 3QCY20, earnings were recorded at PkR3.86/sh, down 20.0%QoQ/8.0%YoY with high provisioning costs being a drag to strong core income performance (Gross yield for 3QCY20 stood at 55.2% vs. 10Qtrs avg. 45.3%). Holding of fixed rate PIBs and delay in repricing of PIB floaters could be the primary factors in pulling up gross yield. · Fee income continues to remain subpar, recovering QoQ but at a slower pace than expected. However, FX income franchise benefits the bank in limiting decline in non-funded income to 3.4%QoQ. · We await detailed financials to update our estimates. At present, we have a buy call on the stock with TP of PkR138.6/sh where dividend yield stands at 10.0%

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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