Bank Al Habib (BAHL): 4Q2018 EPS of Rs2.3, up 12% YoY; 2018 EPS of Rs7.6, down 2% YoY
- Bank Al-Habib (BAHL) reported earnings of Rs2.5bn (EPS Rs2.3), up 12% YoY. The earnings were above expectations due to greater than expected net interest income. The company also announced DPS of Rs2.5 in 4Q2018.
- In 4Q2018, Net Interest Income (NII) of the bank registered growth of 25% YoY to Rs8.4bn mainly driven by high deposit growth as well as higher interest rates.
- The bank booked provisions of Rs22mn in 4Q2018 vs. a reversal of Rs277mn in 4Q2017.
- Non-interest income of the bank was up 27% YoY in 4Q2018 compared to same period last year, driven by 33% YoY increase in fee and commission income and 1.4x higher income from dealing in foreign currencies.
- Non-interest expense of the bank increased by 18% to Rs5.9bn which was in line with growth witnessed in past couple of quarters.
- On QoQ basis, earnings were up 46% as NII rose by 10% QoQ, non-interest income was up 15% QoQ and admin expenses were down 3% QoQ.
- For 2018, earnings were down 2% YoY primarily due to 16% YoY higher admin expenses and no capital gains in 2018 compared to Rs2.8bn of capital gains in 2017.
- 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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