July 23, 2020 (MLN): The meeting of the Board of Directors of Habib Bank Limited (HBL) is scheduled to take place tomorrow to unveil the financial results for 1HCY20 ended June 30, 2020.
According to the projection table given below, all brokerage houses expect the bank to post a net profit of around Rs 11.57 billion to Rs 12.20 billion which translates into an EPS ranging from Rs 7.33- Rs 8.60.
The major improvement in earnings is expected on the back of reduction in the revaluation loss on the open FX position and curtailment in the bank’s operating expenses following the closure of the New York branch, the research of Arif Habib mentioned.
The bank’s net interest income is anticipated to increase substantially on an account of high yielding bonds along with a reduction of 400 bps during the second quarter of CY20.
According to Al Habib Capital, lower FX losses and possible capital gains are expected to support the Non-Funded Income (NFI).
It is pertinent to mention that the State bank of Pakistan has barred commercial banks from announcing pay-outs until 2QCY20.
