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National Bank profits down 20 percent

By our correspondents
October 28, 2016

KARACHI: The National Bank of Pakistan’s (NBP) quarterly profits went down 20 percent, amid a decline in non-markup income.

In its consolidated condensed interim profit and loss statement issued to the Pakistan Stock Exchange on Thursday, the NBP announced profits of Rs3.56 billion for the quarter ended September 30, as compared to Rs4.44 billion in the same quarter of the last year.

The bank announced earnings per share (EPS) of Rs1.66 against Rs2.08 last year.

During this period, the bank earned Rs26.47 billion in interests as against Rs26.19 billion last year. It paid Rs14.99 billion in interests as compared to Rs14.52 billion. Thus, the net interest income of the bank was recorded at Rs11.07 billion against Rs10.06 billion.

Total non-markup income of the bank fell 17 percent to Rs6.58 billion as compared to Rs7.89 million during the same period of the last year.

The NBP’s nine-month period profits went up 21 percent at Rs13.64 billion as compared to Rs11.32 billion during the same period of the last year.

Meeting of the board of directors (BoD) of the National Bank was held on Thursday at bank’s head office in Karachi, which observed that despite a continued reduction in the discount rate during recent quarters, the bank’s net interest income increased 4.3 percent on year-on-year basis for nine months of 2015.

Specific provision charge for the period was Rs1.9 billion, 76 percent lower than Rs8.2 billion for the corresponding nine month period of 2015. “This depicts an improvement in the assets quality of the bank,” the directors noted.

Gross advances of the bank have increased by seven percent to Rs737 billion compared to Rs692 billion as of December 2015.

Growth was also achieved in the deposits which have increased by 19 percent to Rs1.41 billion compared to Rs1.19 billion at the end of September 2015.

Aitemaad Islamic Banking operations of the bank achieved commendable growth during the year as the same has increased to 118 branches from 79 in December 2015 with 80 percent year on year growth in deposits to Rs19.2 billion.

“Product and service initiatives have also been introduced by the bank to boost SME business, and to adopt alternative delivery channels to broaden customer reach,” said a spokesman of the bank.

 

OGDCL profits fall 20pc

The Oil and Gas Development Company Limited’s (OGDCL) profits fell 20 percent in the quarterly earnings, amid a decline in net sales.

In its condensed interim profit and loss statement issued to the Pakistan Stock Exchange, OGDCL declared profits of Rs14.63 billion for the quarter ended September 30 as compared to Rs18.25 billion during the same period of the last year.

The company’s earnings per share (EPS) also decreased to Rs3.40 as compared to Rs4.25.

Net sales of the company fell 11 percent to Rs39.56 billion against Rs44.51 billion. However, operating expenses increased to Rs13.07 billion from Rs12.63 billion, which further increased the profit gap.

Gross profit of the company was recorded at Rs21.76 during the period as compared to Rs26.39 billion in the same period of the last year.

Other income of the company increased 27 percent to Rs5.06 billion against Rs3.99 billion.

Shahbaz Ashraf, an analyst at Arif Habib Limited, said that the exploration cost increased to Rs4.3 billion, up by a stellar 2.4 times on year-on-year basis and 13 percent on quarter-on-quarter basis.

“In the absence of any drywells during the quarter under discussion, the increase in the cost can be attributable to higher seismic acquisition,” he said.

DGKC profits up 24pc

DG Khan Cement Company Limited reported first quarter net profit up 24 percent amid an increase in its sales.

In its interim consolidated profit and loss account statement issued, DGKC declared profits of Rs1.72 billion in the quarter ended September 27, 2016, up against Rs1.39 billion during the last year.

Earnings per share (EPS) were announced at Rs3.94 as against Rs3.17 during the same period last year. The result is in-line with market expectations.

Total sales remained Rs7.11 billion during this period, up six percent compared with Rs6.72 billion last year. Cost of sales, however, fell to Rs4.16 billion against Rs4.47 billion. Thus, gross profit was declared at Rs2.94 billion against Rs2.25 billion last year.

DGKC posted other income of Rs443.73 million against Rs482.70 billion.

 

Lucky profits grow 16pc

Lucky Cement’s (LUCK) first quarter net profits went up by 16 percent on account of an increase in the gross sales.In its condensed interim consolidated profit and loss account statement released to the Pakistan Stock Exchange, Lucky announced earnings of Rs4.04 billion for the first quarter ended September 30, up against Rs3.48 billion during the corresponding period of the last year.

For the period, earnings per share (EPS) were posted at Rs11.69 against Rs10.20. The result is above market expectations.

Gross sales of the company were recorded at Rs24.63 billion, up 10 percent from Rs22.32 billion; cost of production rose to Rs12.84 billion from Rs12.74 billion last year. Thus, gross profit was recorded at Rs6.97 billion, up from Rs6.07 billion in the previous year.

Other income of LUCK rose to Rs873.91 million from Rs620.55 million in the same period last year.

According to directors’ report, cement industry in Pakistan grew by 8.3 percent to 8.97 million tons during the first quarter compared to 8.28 million tons during the same period last year.

Local sales volume registered a growth of 9.5 percent to 7.43 million tons during the fiscal year compared to 6.78 million tons during the same last year; export sales volume registered a growth of 3.0 percent to 1.54 million tons during the first quarter compared to 1.50 million tons during the same period last year.

LUCK achieved an overall growth of 8.8 percent to 1.70 million tons during the first quarter compared to 1.56 million tons sold in the same period last year while local sales volume of the company registered a growth of 25.4 percent to 1.34 million tons during the first quarter compared to 1.07 million tons during the same period last year; export sales volume declined by 27.2 percent to 0.36 million tons during the first quarter compared to 0.49 million tons during the same period last year.

 

Kohat Cement profits up 5pc

Kohat Cement Company Limited (KOHC), one of the biggest white cement manufacturers in the country, on Thursday announced a five percent increase in its quarterly net profits, amid a decline in the cost of sales.In its condensed interim profit and loss statement issued to the Pakistan Stock Exchange (PSX), the company reported a net profit of Rs991.76 million for the quarter ended September 30, up against Rs945.73 million in the previous year.

The company also announced interim cash dividend of Rs4/share. The company posted earnings per share (EPS) of Rs6.42 as compared to Rs6.12 in the same period of the last year.

During this period, net sales of the KOHC fell 1.5 percent to Rs3.19 billion as compared to the last year’s net sales of Rs3.24 billion.

Cost of sales fell 7.5 percent to Rs1.65 billion from Rs1.79 million that increased the profit margins.

KOHC has posted a gross profit of Rs1.53 billion as compared to Rs1.44 billion during the same period of the last year.

The directors of the company in the financial statement said decrease in power cost due to electricity generation from Waste Heat Recovery Power Plant is the primary reason for the improved gross and net margins during the quarter under review.

In the future outlook, the directors said that infrastructure projects under China-Pakistan Economic Corridor (CPEC) and Public Sector Development Programme were most likely to continue the healthy cement demand in the local market, which would result in increased volumes and attractive profits for the company.

 

Indus Motor profits rise 4pc

Indus Motor Company Ltd (INDU) on Thursday announced four percent increase in its quarterly net profits on account of an increase in sales.

In its condensed interim profit and loss statement sent to the Pakistan Stock Exchange (PSX), INDU declared profits of Rs3.04 billion for the quarter ended September 30, up against Rs2.93 billion during the same period of the last year.

The company also announced interim cash dividend of Rs25/share. Indus Motors posted earnings per share of Rs38.77 during this period against Rs37.33 last year.

Net sales of the company were posted at Rs25.75 billion, which also grew four percent as compared to Rs24.85 billion in the corresponding period of the last year.

Cost of sales rose to Rs21.57 billion against Rs20.66 billion. INDU earned gross profits of Rs4.17 billion as against Rs4.19 billion.

Other income of the company increased to Rs874.20 million from Rs798.15 million in the same period of the last year.

A spokesman for the company said the demand for automobiles remained robust throughout the first quarter, stemming from the favourable macroeconomic indicators and positive consumer sentiment in the country.

“The prevailing environment of low interest rates, sustainable inflows of record inward remittances, lower fuel costs and stability in the selling prices of cars contributed towards upbeat demand in the market place,” he said.

The combined sales of Toyota CKD/CBU brand vehicles for the quarter was down marginally to 14,542 units compared to 14,948 units sold during same period last year, while the company’s production of PC/LCVs for the quarter declined 0.5 percent to 14,851 as against 14,922 units produced during the first quarter last year.

The company’s sales revenue from CKD, CBU and spare parts business for the first quarter FY16-17 grew 3.6 percent to Rs25.8 billion compared to Rs24.9 billion achieved for the same period last year, while the resultant profit after tax at Rs3.0 billion was up 3.4 percent from Rs2.9 billion achieved for same period in FY15-16 mainly on account of higher sales volume.

 

BAFL profits down 6.5pc

The profits of Bank Alfalah Limited (BAFL) declined 6.5 percent, amid a fall in interest earnings.

In its consolidated condensed interim profit and loss statement issued to the Pakistan Stock Exchange, BAFL announced profits of Rs2.10 billion for the quarter ended September 30 as compared to Rs2.25 billion in the same quarter of the last year.

The bank announced earnings per share (EPS) of Rs1.31 against Rs1.41 last year. Earnings were in line with the market expectations.

During the period under review, the bank earned Rs13.73 billion in interests as against Rs14.90 billion last year. It paid Rs6.70 billion in interests as compared to Rs7.60 billion. Thus, the net interest income of the bank was recorded at Rs7.03 billion against Rs7.15 billion.

BAFL’s nine-month period profits were up eight percent at Rs6.43 billion as compared to Rs5.96 billion during the same period of the last year. The bank’s Net markup income after provisions was reported at Rs21.352 billion, improving 7 percent over the corresponding period last year.  The statement said in line with the bank’s strategy to focus on reducing its cost of funds, it has taken steps to reduce high cost deposits, and at the same time improve the composition of CASA deposits in its deposit base. “While total deposits remained at the same level as that of December 2015 end, CASA mix improved from 74 percent to 79 percent at September 2016,” it added.

The statement added that with low level of interest rates prevalent, margins of the Banking industry have considerably narrowed down. “Despite of lower spreads on offer, the bank’s gross ADR remains competitive at 54 percent at the period end, while the bank’s non-performing loans (NPLs) coverage stands at 83 percent.”