HBL reports profit-after-tax at Rs12.4bn

KARACHI: Habib Bank Limited declared profit-after-tax at Rs12.4 billion with earning per share (EPS) at Rs8.22 for the financial year ending Dec 31, 2018. It represented improvement of 42 per cent over the PAT at Rs8.8bn and EPS at Rs5.79 from the previous year. The bank recommended final cash dividend at Rs1.25 per share, which was in addition to the already paid interim at Rs3 per share. Banking sector analysts reminded that the bank had booked hefty one-off penalty of Rs23.7bn imposed by the US regulator on the New York branch over the money-laundering compliance failure in 3Q17. Excluding the one-off penalty impact, earnings in CY18 would be down year-on-year. The bank saw its earnings buoyed due to a reversal in the Workers Welfare Fund of Rs2.9bn compared to and expense of an expense of Rs1bn last year due to a favourable court decision.

United Bank Limited posted PAT at Rs15bn for the financial year ended Dec 31, 2018 translating into EPS at Rs12.65, down 41pc over the PAT at Rs26.0bn and EPS at Rs21.20. The board announced final cash dividend at Rs3 per share which was in addition to the interim Rs8 per share. The accounts showed “net provisions and write-offs” of Rs13.1bn for the latest year, up from the Rs2.6bn recorded in the earlier year. Analysts stated that the results for the latest year were lower due to Rs6.7bn in total pension charges and 4.7 times higher provisioning booked by the bank in FY18. The bank got some respite in its pension liability which was reduced by Rs2.19bn, which combined with the impact of a favourable court verdict in the Workers Welfare Fund case, buoyed its stock by Rs1.8 per share quarter on quarter.

MCB Bank PAT for the year 2018 stood at Rs20.4bn and EPS at Rs17.17, down 7pc from PAT at Rs22bn and EPS at Rs18.53 YoY. Foreign exchange income rose to Rs11.6bn, from Rs10.5bn last year, benefitting from volatility in the currency market. Interest income and fee and commission income also improved. However, analysts said that the bank booked net provisioning and impairment charge in the 4QFY18, opposed to continuing reversals. The Bank has paid the highest cash dividend per share in the industry, according to its own announcement.

Engro Corporation Limited — the conglomerate unveiled financial results for the year ended Dec 31, 2018 posting consolidated PAT at Rs23.6bn, up by sizeable 45pc from Rs16.3bn the previous year. Profit attributable to shareholders jumped to Rs12.7bn, from Rs9.4bn and the EPS climbed to Rs24.26 from Rs17.96. The company declared dividend at Rs2 per share which was in addition to Rs19 per share already paid. Bonus issue at 10pc was also announced. Revenues grew 33pc to Rs171.6bn, from Rs128.6bn. The company said in an accompanying statement that the increase was primarily driven by improved fertilisers and petrochemicals performance. Fertiliser business revenue was up by 42pc.

Kot Addu Power Company unveiled six months’ (FY2018-19) accounts for the period ended Dec 31, 2018 reflecting stellar growth of 105pc in PAT at Rs9.0bn and EPS at Rs10.22, from Rs4.4bn and EPS at Rs4.99 YoY. The company, however, surprised the market by skipping a dividend. Some analysts attributed it to heavy overdue receivables. Sales grew 11pc to Rs44.2bn, from Rs40.0bn last year which was mainly due to rise in furnace oil prices. The other income rose to Rs10.3bn, from Rs3.0bn which was ascribed by analysts to higher tariff true-up (income) during the period mainly a result of currency depreciation during the period.