ABL earning up by 11pc

STAFF REPORTER KARACHI ABL announced earnings for CY19 at PKR 14.5bn (EPS: PKR 12.65), increasing 11% YoY, led by strong NII growth. Earnings depicted a healthy jump of 43% QoQ with NII showing a drastic uptick and capital gains bolstering earnings further, and countering a significant net provisioning charge. The bank also announced a dividend of PKR 2.00/share leading to total payout of PKR 8.00/ share for CY19. Net Interest Income of the bank settled at PKR 41.5bn for CY19, increasing 29% YoY while accelerating by a massive 27% QoQ owing primarily to an 8% QoQ downturn in interest expense which we attribute to a possible decline in Repo Borrowing. Banks had leveraged their balance sheet significantly in 3Q due to expectations of a rate cut in the near future which did not materialize. Healthy capital gains were booked worth PKR 853mn most likely on equities which helped fuel NFI by 25% QoQ. Fee income and dividend income also saw a spike of 23% and 17% QoQ respectively