Allied Bank (ABL): 2QCY19 EPS Rs2.75, down by 7% YoY, DPS Rs2.0 (Lower than estimate)
- Allied bank limited (ABL) posted earnings of Rs2.75/share, down by 7%YoY in 2Q2019 primarily due to higher operating expenses. Cumulative earnings during 1H2019 of the bank clocked in at Rs6.2bn (EPS: Rs5.45); down by 14%YoY.
- Along with the results, the bank announced a cash dividend of Rs2.0/share.
- Non-interest income (NII) declined by 12%YoY despite recording hefty gains in foreign exchange income of 56% primarily due to lower dividend income and gains on securities cumulatively of Rs866mn compared to Rs1.6bn in the same period.
- Non-markup expense grew significantly by 22%YoY to Rs7.2bn as compared to Rs5.9bn in 2Q2018. This was primarily on the back of higher operating expenses, which grew by 24%YoY to Rs7.1bn.
- The bank booked provisions reversal of Rs85mn during the outgoing quarter vs. reversal of Rs580mn during a similar period last year.
- Effective tax rate of the bank clocked in at 36% compared to 41% in the same period.
- Key risks for the company include 1) lower than expected advances and deposit growth, 2) higher than expected operating expenses and, 3) deterioration in Pakistan macros.
Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.
Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.
Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.
JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).
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