Askari Bank (AKBL): 2QCY19 EPS Rs1.03, up by 13% YoY (in-line with estimate)
- Askari bank Limited (AKBL) posted earnings of Rs1.03/share, up by 13%YoY in 2Q2019 primarily due to NIMs expansions and lower effective tax rate compared to last year. Cumulative earnings during 1H2019 of the bank clocked in at Rs3.1bn (EPS: Rs2.48); up by 24%YoY.
- It is pertinent to note that PBT of the company has declined by 10%YoY primarily due to higher provisions and operating costs, PAT of the company have grown by 13% owing to lower taxation compared to same period last year.
- Non markup income of the bank grew by hefty 22%YoY to Rs2.0bn as compared to Rs1.6bn owing to higher fee and commissions along with income from derivatives.
- Non interest expense grew significantly by 15%YoY owing to18% higher operating expenses.
- The bank booked provision charge of Rs587mn as compared to Rs156mn. While during 1H2019 the bank booked provisional expense of Rs239mn vs a reversal of Rs402mn.
- Effective tax rate of the bank clocked in at 37% as compared to 50% in the same period last year. However, effective tax rate during 1H2019 clocked in at 40% vs. 43% in 1H2018.
- Key risks for the company include 1) lower than expected advances and deposit growth, and 2) 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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