NBP profit jumps 87 percent to Rs7.708 billion in Q1

KARACHI: National Bank of Pakistan (NBP) net profit increased to Rs7.708 billion during the quarter ended March 31, 2021, up 87 percent from Rs411.8 billion during the same quarter last year, a bourse filing said on Wednesday.

The EPS clocked in at Rs3.62 during Q1 2021 compared with Rs1.94 during the same quarter in 2020.

“The bank has delivered strong financial results, demonstrating resilience of its business model and efforts of its workforce in serving the nation and working with the government towards swift economic recovery in the country,” the notice said.

Given the significant drop in the policy rate as compared to the same period last year, gross mark-up/interest income was Rs48.5 billion being 33.2 percent lower, YoY, while interest/mark-up expense of the bank dropped by 52.0 percent at Rs26.9 billion.

Consequently, net interest/mark-up income stood at Rs21.6 billion, ie 30.3 percent higher, YoY. Despite subdued economic activity during the year, non-mark-up / non-interest earning closed 2.4 percent higher at Rs8.5 billion (March 2020: Rs8.3 billion).

Accordingly, total revenue of the bank was 21.0 percent up YoY at Rs30.1 billion (March 2020: Rs24.9 billion).

Administrative expenses remained controlled and recorded a marginal increase of 3.8 percent YoY to close at Rs14.3 billion. Cost-to-income ratio improved to 47.7 percent from 55.5 percent in Q1 2020. During the year, NPLs increased by 6.6 percent to close at Rs182.5 billion (December 2020: Rs171.3 billion).

“Proactively, moving from ‘incurred’ to ‘expected’ credit loss model, the bank created provision charge of Rs3.11 billion to make its balance sheet more resilient in the prevailing circumstances,” a statement said.

The bank’s liquidity and net stable funding ratios improved to 156 percent and 256 percent, respectively. Net assets at end March 2021 stood at Rs269.8 billion, translating into break-up value per share at Rs126.8, which is 30 percent up from Rs97.2 at end 2018. NBP’s end of year total assets closed at Rs3,340.3 billion ie 11.0 percent higher than Rs3,008.5 billion level of the year 2020.

Lucky Cement posts Rs7.14bln profit

Lucky Cement Limited has announced a net profit of Rs7.14 billion translating into EPS of Rs22.1 for the quarter ended March 31, 2021 compared with the profit of Rs991.9 million and EPS of Rs3.09 in the corresponding period last year.On a consolidated basis, Lucky Cement reported the highest profit after tax to date of Rs22.15 billion of which Rs3.93 billion is attributable to non-controlling interests for the nine months ended March 31, 2021.This translates into EPS of Rs56.36 as compared to Rs14.38 reported during the same period last year. The increase in net profit was mainly attributable to increase in profitability of the cement segment (Holding Company) which grew by 3 times due to higher turnover and better efficiencies from new line at North.

The increase in the consolidated net profit was further supported by considerable increase in net profit of Lucky Motor Corporation. The other subsidiaries, ICI Pakistan Limited and LCL Investment Holdings Limited also posted significant increase in profitability mainly attributable to growth in sales revenue.Further, on a consolidated basis, Lucky achieved gross turnover of Rs202.46 billion which is 63 percent higher as compared to the same period last year’s turnover of Rs123.99 billion.Lucky Cement expects that in view of hike in infection ratio from third wave of Covid-19, if the government imposes micro/smart lock-downs in major cities, then the cement demand will be affected in the short-term.The company also believes that the package announced by the government for the construction industry coupled with various initiatives taken by State Bank of Pakistan to support the housing sector and the commencement of new housing projects under Naya Pakistan Housing (NPHP) scheme would have a positive impact on the local demand of cement in the country in medium to long-term.New inflows are also expected in CPEC projects, which will result in increased cement demand. Lucky expressed its concern that there will be a pressure on margins due to rising coal and furnace oil prices.

BAHL net profit up 60.9pc in Q1

Bank Al Habib Limited (BAHL) net profit increased 60.9 percent to Rs4.60 billion during the quarter ended March 31, 2021, translating into EPS of Rs4.14, a bourse filing said.

The bank earned Rs2.859 billion profit with EPS of Rs2.57 during the same quarter last year.

Profit before tax was recorded at Rs7.06 billion, showing a growth of 47.36 percent as compared to the corresponding period last year, driven by markup income as well as fees and commission income.

Net markup income increased by 16.56 percent compared to the corresponding period last year, bringing it to Rs13.11 billion, reflecting the bank’s success in maintaining sustainable growth. Despite the challenging conditions and free online offerings during the Covid-19 pandemic, the bank managed to increase its fee and commission income by 38.23 percent as compared to the first quarter of 2020.

Total Assets reached Rs1.61 trillion, an increase of 5.65 percent as compared to December 31, 2020. Net loans and advances grew by 4.54 percent to reach Rs533.43 billion, whilst investments increased by 10.38 percent to reach Rs844.31 billion, leading to overall growth in total assets, a statement said.

Due to sound risk management practices and prudent financing strategy, the NPL ratio was recorded at 1.24 percent. The bank achieved a coverage ratio of 182.87 percent, which reflects the prudent approach adopted towards non-performing loans.

Deposits increased 6.16 percent bringing the total deposits to Rs1.17 trillion as on March 31, 2021. Capital Adequacy Ratio (CAR) recorded at 14.10 percent as of March 31, 2021 against the regulatory capital requirement of 11.50 percent (including capital conversion buffer of 1.50 percent as reduced under the BPRD circular letter no 12 of 2020). Gross advances to deposit ratio stood at 46.75 percent, the statement added.

Soneri Bank Q1 net profit up 92pc

Soneri Bank Limited (SNBL) net profit went up 92 percent to Rs781.910 million in the quarter ended March 31, 2021, with EPS of Rs0.7092, a bourse filing said.

SNBL earned Rs407.461 million profit with EPS of Rs0.369 during the same quarter last year. Net interest income for the quarter was reported at Rs2.720 billion, improving by 28.98 percent against Rs2.109 billion reported for the same period last year.

Non-interest income for the period was reported at Rs961 million as against Rs1.168 billion for the comparative prior period. Overall income of the bank indicated an improvement of Rs404 million, or 12.32 percent, YoY. Growth in expenses was restricted at 11.88 percent as compared to the prior period with non-markup expenses reported at Rs2.528 billion for the current quarter.

Net advances portfolio stood at Rs199.787 billion, 21.42 percent higher than the year end 2020 level. Net investments also ended higher by 10.33 percent and closed at Rs275.773 billion at the quarter end.

Deposits registered a slight decline of 2.30 percent when compared to December 31, 2020, ending at

Rs337.569 billion as at March 31, 2021, mainly due to fall in high cost deposits.

“The bank continues to remain adequately capitalised, with CAR of 15.37 percent as at March 31, 2021.”

The board of directors in the meeting recognised and appreciated the efforts of the management in delivering improved performance amidst challenging times.

The board remains confident that the bank “shall continue to protect and serve the interest of all stakeholders by fulfilling the growing banking needs of our society, and focusing on financial inclusion and customer satisfaction”.

FFC profit up 36pc to Rs5.82bln

Fauji Fertilizer Company Limited (FFC) has announced its financial results for the quarter ended March 31, 2021 with net profitably of Rs5.82 billion translating into an earnings per share (EPS) of Rs4.57, which was 36 percent higher than the last year.

The company also declared first interim dividend of Rs3.50 per share for the quarter.

FFC attained urea production of 628,000 tons, operating at combined efficiency of 123 percent and registered aggregate sales revenue of Rs21.59 billion, which was 5.0 percent higher than first quarter of last year.

Other income of the company also increased due to higher dividend distribution by an associated company.

FFC was able to maintain uninterrupted business operations, including continued supply chain, besides maintaining highest standards of health and safety for the employees under the adverse conditions of Covid-19.