NBP profit jumps 110pc in Q3

KARACHI: National Bank of Pakistan (NBP) profit jumped 110 percent to Rs11.069 billion in the third quarter ended September 30, 2020 with EPS of Rs5.20, a bourse filing said on Tuesday.

NBP earned Rs5.258 billion with EPS of Rs.2.47 in the same quarter last year. The bank did not announce any interim dividend for the three-month period ended September 30, 2020, notice to the Pakistan Stock Exchange (PSX) said.

Net interest income of the bank declined 71 percent to clock in at Rs31.449 billion in Q32020 compared to Rs18.367 in Q32019.

Syed Fawad Basir of Topline Securities said, “The result came in higher than our expectations as the increase in NII clocked in at 71 percent YoY. A decline of 2.0 percent QoQ was seen as asset re-pricing set in leading to interest earned to decline by 16 percent QoQ.”

However, he said the bank holds around 70 percent of interest bearing deposits. “Given the decline in interest rates, the bank registered a decline of 28 percent QoQ in interest expense, which helped propel the bottom line.”

Non-interest income decline was limited to 4.0 percent QoQ, whereas it increased by 27 percent YoY. The head was driven by higher capital gains at positive 81 percent QoQ. The bank’s non-interest expense also declined by one percent QoQ, whereas the cost to income of the bank was maintained at 38 percent in Q32020

NBP booked an effective tax rate of 38 percent this quarter.

MCB Q3 profit surges 73 percent

MCB Bank Limited profit surged 73 percent to Rs9.725 billion in the third quarter of 2020, with EPS at Rs8.21, a bourse filing said.

The bank registered a profit of Rs5.611 billion with EPS of Rs4.74 in the same quarter last year. No dividend has been announced for the third quarter in compliance with the central bank’s April notice. MCB had already announced the first interim cash dividend for the quarter ended March 31, 2020 at Rs5/share equivalent to 50 percent.

Brokerage Arif Habib Limited in their research note said the bank’s consolidated net Interest income settled at Rs58.8 billion, portraying an impressive 28 percent YoY increase while on a sequential basis, it witnessed a two percent deceleration as asset re-pricing from rate cuts suppressed interest earned by 12 percent QoQ.

NFI posted a twofold jump QoQ led by capital gains of Rs2.9 billion being booked (most likely on government securities) during the quarter against a loss of Rs51 million last quarter. Fee income posted an impressive 24 percent QoQ recovery, the brokerage house added.

Provisioning expenses clocked in 66 percent lower sequentially (Rs1.1 billion against Rs3.3 billion last quarter).

Impressive control on costs continued with operating expenses staying almost stagnant YoY during 9MCY20, whilst increasing four percent QoQ. Cost/income has declined once again, to 36 percent during Q3CY20 against 39 percent last quarter, while settling at 40 percent during 9MCY20 against 50 percent in the same period last year.

Effective tax rate was 40 percent during 9MCY20.

The non-performing loan (NPLs) base recorded an increase of Rs784 million and was reported at Rs50.21 billion. MCB enjoys highest local credit ratings of AAA / A1+ categories for long-term and short-term respectively, based on PACRA notification dated June 26, 2020.

“On the financial position side, the total asset base of the bank on an unconsolidated basis was reported at Rs1.67 trillion depicting an increase of 11 percent over December 2019,” the bank said. Analysis of the asset mix highlights that net investments increased by Rs216 billion (29 percent), whereas due to subdued domestic demand gross advances decreased by Rs46 billion ( negative nine percent) over December 2019.

PSO profit up 45pc to Rs5.144 billion in Q1

Pakistan State Oil (PSO) profit increased 45 percent to Rs5.144 billion with earnings per share (EPS) of Rs10.96 in the first quarter of fiscal year 2020/21, a bourse filing said.

The company’s profit was Rs3.528 billion with EPS of Rs7.52 in the same quarter last fiscal. The board of management did not announce any cash dividend for the quarter ended September 30, 2020, notice to the PSX said.

Net sales of the company were down 15 percent to Rs280.765 from Rs329.782 in the quarter ended September 30, 2019. It also registered a decline of 15 percent its cost of products sold and 10 percent drop in the sales tax.

Gross profits of the company posted a growth of 7.3 percent to Rs11.496 compared to Rs10.706 billion in July-September FY20, mainly due to inventory gains resulting from higher international oil prices.

Asjad Hussain of Taurus Research in his note said that in Q1FY21, PSO’s revenue increased 27 percent QoO as a result of higher volumes emanating from the improving economic activity post-lockdowns, higher auto sales, and modest increase in tractor sales resulting from increasing agricultural activity.

Finance cost of the company declined 68 percent to Rs0.858billion in July-September FY21, from Rs2.658 billion in the same quarter last fiscal, which the company’s board attributed to effective planning and cash flow management, supported by reduction in average policy rates.

PSO witnessed a volumetric growth of 11.8 percent in motor gasoline, 17.1 percent in high speed diesel (HSD), 7.7 percent in white oil, 37.8 percent in black oil and 13.9 percent in liquid fuels, a company statement said.

PSO attained new milestones on its journey of environmental stewardship with the launch of Euro 5 Hi-Octane 97 and Altron Premium Euro 5 (92 Ron) during the months of August and September 2020. “Plans are underway for the launch of Euro 5 compliant HSD.”

FFBQL posts Rs3.246 billion profit in Q3

Fauji Fertilizer Bin Qasim Limited (FFBQL) posted Rs3.246 billion for the quarter ended September 30, 2020 translating into EPS of Rs3.45, a bourse filing said.

The company lost Rs1.630 billion with loss per share of Rs1.41, in the corresponding quarter ended September 30, 2019. The company did not announce any interim cash dividend for the period, PSX notice said.

Sunny Kumar of Topline Securities said, “The earnings came in higher than industry and our expectations due to higher-than-expected other income.”

Revenues of the company increased by 14 percent YoY to Rs25.180 billion compared to Rs22.146 billion in Q32019 amid increase in Urea and DAP off-take by 15 percent and 22 percent YoY, respectively, Kumar said.

Gross margins of the company clocked in at 15.7 percent, up 5.4ppts YoY mainly due to reduction in cost of Gas Infrastructure Development Cess (GIDC).

Other Expenses were down by 68 percent YoY to Rs134 million mainly due to exchange gain.

FFBQL’s other income increased by 24 percent YoY to Rs2.544 billion on back of dividend income from FFBL Power amounting to Rs2 billion, which was higher than expected, analysts said.

Pak Suzuki losses decline in Q3

Pak Suzuki Motor Company posted loss of Rs136.383 million with LPS of Rs31.58 in the third quarter of 2020, a bourse filing said.

The automaker’s loss was Rs1.161 billion with LPS of Rs14.11 in the same period last year. The company did not announce any interim dividend.

Taurus Research in its note said the result was mostly in-line with its expectations except finance cost, which decreased less than its anticipations.

In Q3CY20, revenue decreased 12 percent YoY despite the increase in selling prices, due to lower volumetric sales, which were down 24 percent YoY, mainly affected by decline in the demand for Alto.

However, gross margin increased YoY from negative 0.9 percent in Q3CY19 to 5.2 percent in Q3CY20, supported by increase in selling prices.

Finance cost of the company decreased 91 percent YoY, due to availability of loan from parent company at a subsidised spread of 0.2 percent over LIBOR mainly. Further, working capital requirement of the company also decreased, due to the significant drop in inventory of finished products.