Habib Bank Limited (HBL): 2Q2020 EPS at Rs7.5, up 171% QoQ (Results above expectation)
- Habib Bank Limited (HBL) has announced 2Q2020 consolidated earnings of Rs7.53/share. This is an increase of 171% QoQ.
- The result was above our expectations and industry’s consensus owing to higher-than-expected Capitals Gains and lower-than-expected Admin costs.
- Net Interest Income increased by 25% QoQ led by 21% QoQ decline in Interest Expense, while Interest Earned declined by 3% QoQ due to lagged impact on Asset re-pricing.
- Capital gains were recorded at Rs4.4bn largely emanating from the bank’s Fixed Income portfolio. This in turn propelled Non Interest Income by 88% QoQ.
- The push in earnings also came from a decline in Operating Expenses of Rs3.6bn, which came on the back of reduced business transformation expense and reduced costs related to winding down of the New York branch.
- Cost to income has come down to 49% from 77% in 1Q2020.
- However, the bank recorded significantly higher provision expenses of Rs4.8bn, up 675% QoQ.
Effective taxation clocked in at 41% for the period.
Habib Bank Limited is engaged in commercial banking and asset management related services in Pakistan and overseas. The Bank's segments include Branch Banking, which consists of loans, deposits and other banking services to agriculture, consumer, small and medium-sized enterprise (SME), and commercial customers; Corporate Banking, which consists of lending for project finance, trade finance and working capital to corporate customers and it also provides investment banking services, including services provided in connection with mergers and acquisitions; Treasury, which consists of trading, fixed income, equity, derivatives and foreign exchange businesses, and it also includes credit, lending and funding activities with professional market counterparties; International Banking, which is engaged in monitoring and reporting purposes and consists of its operations outside of Pakistan, and Head Office/Others. It operates in Pakistan; Europe, Middle East and America, and Asia and Africa.
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).
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.