Bank Al Habib (BAHL): 2QCY19 EPS Rs2.15, up by 12% YoY (in-line with estimate)
- Bank al-Habib (BAHL) posted earnings of Rs2.15/share, up by 12%YoY in 2Q2019 primarily due to NIMs expansion owing to higher interest rates. Cumulative earnings during 1H2019 of the bank clocked in at Rs4.4bn (EPS: Rs4.0); up by mere 6%YoY.
- Net markup income of the bank grew by hefty 23%YoY to Rs9.6bn as compared to Rs7.8bn in the same period last year.
- Non interest income (NII) grew by massive 35%YoY owing to hefty gains in foreign exchange income of 102% to Rs841mn compared to Rs403mn in the corresponding period.
- Non markup expense increased by 14%YoY to Rs6.6bn as compared to Rs5.8bn in 2Q2018. This was primarily on the back of higher operating expenses which grew by 14%YoY to Rs6.4bn.
- The bank booked provision charge of Rs1.7bn as compared to Rs180mn.
- Effective tax rate of the bank clocked in at 45% vs 42% in the same period last year.
- Key risks for the company include 1) lower than expected hike in interest rate, 2) lower than expected advances and deposit growth, 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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