Karachi: United Bank Limited (UBL) board meeting to for its 9MCY11 results is scheduled for 10:00 am in Abu Dhabi.
According to Arif Habib Limited, the bank is expected to post 3.7% QoQ growth in bottom-line during the 3QCY11 with net earnings to reach PKR 3,557mn (EPS: PKR 2.91) compared to PKR 3,432mn (EPS: PKR 2.80) in the corresponding period last year. This will take cumulative net income for the 9MCY11 to PKR 10,262mn, a rise of 27.3% YoY. The 18.4% YoY jump in Net interest income is expected to be substantially diluted on account of 16.7% YoY rise in the bank’s total provisioning. The bank’s operating expenses are anticipated to witness a rise of 14.8% YoY to reach PKR 14,759mn. The non interest income is estimated to register an increase of 17.1% YoY, which is projected to be supported by 1.9times jump other operating income and 4% YoY higher fee and commission income.
At the last closing price of PKR 55.7/share, UBL is trading at a CY11 P/BV and a dividend yield of 0.8x and 10%, respectively. The scrip is offering an upside of 43% to Arif Habib’s June-12 target price of PKR 79.7/share. BUY!
|Financial Highlights||PKR mn|
|Provisions against NPLs||6,738||5,255||28.2%||2,254||2,279||-1.1%|
|Fees and commission||4,905||4,710||4.1%||1,625||1,681||-3.3%|
|Non Interest income||8,541||7,294||17.1%||2,660||2,872||-7.4%|
|Source: Company financials and AHL Estimates|