Earning Preview: Interest and non-interest income to rise HBL’s profits in CY19

February 19, 2020 (MLN): Habib Bank Limited (HBL) is scheduled to unveil financial results for CY19 on Wednesday i.e. today.

According to the projection table given below, all brokerage houses expect the bank to post a net profit of around Rs 13.95 billion to Rs 15.01 billion which translate into an EPS ranging from Rs 9.51- Rs 11.11.

Research House

CY2019 Net PAT

Earnings per share (EPS)

CY2018 Net PAT

% change YoY

JS Global

Rs 13.95 billion

Rs 9.51

Rs 12.05 billion

16%

Aba Ali Habib

Rs 14.55 billion

Rs 9.72

Rs 12.44 billion

18%

Arif Habib

Rs 14.33 billion

Rs 9.77

Rs 12.05 billion

19%

Pearl

Rs 14.88 billion

Rs 9.95

Rs 12.44 billion

20%

AKD

Rs 15.01 billion

Rs 10.14

Rs 12.44 billion

20.7%

BIPL

Rs 14.64 billion

Rs 9.89

Rs 12.05 billion

20%

Al Habib Capital

Rs 14.48 billion

Rs 9.66

Rs 12.44 billion

16%

Topline

Rs 11.11

Rs 12.44 billion

IMS

Rs 9.45

Rs 12.44 billion

Insight

Rs 10.09

Rs 12.44 billion

Next

Rs 9.91

Rs 12.44 billion

Alfalah

Rs 10.39

Rs 12.44 billion

 

The increase in profitability is expected mainly on the account of rising in bank’s net interest income supported by an estimated higher non-interest income.

During CY19, bank’s interest income is anticipated to increase substantially on a back of growth anticipated in the bank’s credit offtake. However, interest expense is estimated to rise due to an increase in deposits volumes and higher deposit rates which might restrict the rise in NII as per the research of Pearl Securities.  

According to Al Habib Capital, non-funded income is likely to grow due to rising fee income which is anticipated to have taken impetus from consumer finance businesses, investment banking and trade deliveries.

The operating expenses of the bank are expected to rise due to ongoing remediation expenses relating to bank’s NY operations coupled with the continuation of business transformation cost and deposit insurance cost which likely to increase bank’s cost levels.

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Posted on: 2020-02-19T10:45:00+05:00

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