Home / Brokerage / Result Preview 9MCY11 net earnings expected to jump by 27.3% YoY – Arif Habib Limited

Result Preview 9MCY11 net earnings expected to jump by 27.3% YoY – Arif Habib Limited

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
 9MCY11 9MCY10 YoY 3QCY11 2QCY11 QoQ
NII  29,697 25,081 18.4% 10,436 10,155 2.8%
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%
Dividend income 472 447 5.5% 150 221 -32.1%
Non Interest income 8,541 7,294 17.1% 2,660 2,872 -7.4%
Admin Expenses 14,759 12,860 14.8% 5,084  5,034 1.0%
PBT 15,702 12,925 21.5% 5,473 5,217 4.9%
PAT 10,262 8,060 27.3% 3,557 3,432 3.7%
EPS 8.38  6.58 27.3% 2.91 2.80 3.7%
Source: Company financials and AHL Estimates

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