Staff Reporter
Karachi
AKBL announced earnings in line with expectations for 1HCY19 at PKR 3.1bn (EPS: PKR 2.48) depicting a YoY uptick of 24% whilst declining 30% QoQ (2QCY19 EPS: PKR 1.03). Core earnings of the bank led the earnings jump, while higher provisioning stressed earnings on a sequential basis. Ex-provisioning earnings of the bank increased 43% YoY during 1HCY19 and 2% QoQ. No dividend was announced. Net Interest Income of the bank settled at PKR 10.9bn, improving 22% YoY whilst declining 10% QoQ which was on account of the 150 bps rate hike in May (immediate impact on liabilities and lagged impact on asset side). Non-Funded Income (NFI) accelerated 19% YoY/45% QoQ with stellar growth in fee income (23% YoY / 15% QoQ), compensating for lackluster capital gains (down 72% YoY / 91% QoQ). FX income of the bank also showed a remarkable uptick of 32% YoY / 113% QoQ. The bank booked a net provisioning of PKR 239mn during 1HCY19 compared to net reversals of PKR 402mn SPLY. The bank booked a provisioning expense of PKR 587mn during 2Q which is most likely owing to an impairment charge on the equity portfolio. OPEX increased 13% YoY / 5% QoQ. Cost/income declined to 63% compared to 64% during 1HCY18. Effective tax rate settled at 40% for 1HCY19 compared to 42.5% SPLY.
