UBL and MCB: Earnings to rise owing to higher net interest income

August 7, 2019 (MLN): The Board meetings of United Bank Limited (UBL) and Muslim Commercial Bank (MCB) are scheduled to take place today to discuss and announce the financial results for the half year ended on June 30th 2019.

Research houses have reckoned that UBL’s Profits after Tax (PAT) are expected to increase by over 40% within a range of Rs 8.14 bln to Rs 10.9 bln as compared to the PAT of Rs. 6.27 billion earned in the same period last year.

Whereas, the general market expectations for MCB’s profits after tax have turned out to be between Rs.10.24 billion to Rs.10.78 billion in 1HFY19, with EPS ranging from Rs.8.6 to Rs.9.1. This suggests that the bank is expected to observe a minor increase in its earnings compared to last year.

According to Shajar Capital, the surge in UBL’s net income is expected mainly due to improvement in net interest income, absence of pension charge which bank took last year of Rs 8.4 bln and lower provision charges on international business.

Whereas, MCB’s net income is expected to increase slightly due to increase in net interest income on the back of increase in asset base and increased interest rate along with repricing of assets at higher rate.  

UBL

Brokerage House

1HFY19 PAT

Earnings per share (EPS)

% change in PAT

 

 

 

 

Arif Habib Limited

Rs 9.1 bln

Rs 7.43

45%

JS Global

Rs 8.8 bln

7.08

40%

Shajar Capital

Rs 8.14 bln

Rs 6.64

33%

Darson Securities

Rs 10.9 bln

Rs 8.26

78.4%

Ismail Iqbal Securities

Rs 9.5 bln

Rs 7.76

51.4%

IGI Securities

Rs 9.1 bln

Rs 7.5

46%

 

MCB

Brokerage House

1HFY19 PAT

Earnings per share (EPS)

% change in PAT

 

 

 

 

Arif Habib Limited

Rs 10.3 bln

Rs 8.72

10%

JS Global

Rs 10.3 bln

Rs 8.69

9%

Shajar Capital

Rs 10.24 bln

Rs 8.6

8%

Darson Securities

Rs 10.6 bln

Rs 8.92

11.9%

Ismail Iqbal Securities

Rs 10.78 bln

Rs 9.1

15.6%

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Posted on: 2019-08-07T11:22:00+05:00

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