Author Topic: HBL -- Habib Bank Limited  (Read 135901 times)

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Offline Farzooq

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Re: HBL -- Habib Bank Limited
« Reply #579 on: February 25, 2019, 12:52:04 PM »
Habib Bank Limited : Bumpy road to earnings recovery; Neutral maintained

We maintain our Neutral rating on Habib Bank Ltd (HBL) post CY18 results and management meeting. A notable change in our view is downward revision in our estimates by 20/2% for CY19/20.
Valuation of the stock has significantly come off with P/BV now faring at 0.9x (CY19E), however concerns on earnings recovery may limit price recovery. We see better environment for stock price performance in 2H19.
CY19 promises to bring relief to HBL on major earnings’ drags faced in CY18, however complete normalization of earnings trend is seen in CY20 once legal/consultancy cost and drag from investment in low-yielding bonds subside.
Key positives in our view are: (i) performance of domestic operation (advances, deposit), and (ii) stability in asset quality. Key negatives are: (i) continuation of drag from legal/consultancy cost, and (ii) heavy FX exposure.
Capital adequacy of the bank is likely to remain a major focus area with the bank’s current and future adequacy estimated to incorporate marginal cushion above mandated requirement. We reiterate our view of constrained payout for HBL for most of CY19.
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Re: HBL -- Habib Bank Limited
« Reply #579 on: February 25, 2019, 12:52:04 PM »

Offline Farhan Kermani

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Re: HBL -- Habib Bank Limited
« Reply #580 on: April 03, 2019, 09:31:19 AM »
why the big selling yesterday

Offline farhan hafeez

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Re: HBL -- Habib Bank Limited
« Reply #581 on: April 17, 2019, 02:03:14 PM »
HBL has faced the foreign selling. perils to being the MSCI star. this government will be the death of everything. Nothing is safe from PTI and its bufoons

Offline jahangir

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Re: HBL -- Habib Bank Limited
« Reply #582 on: April 17, 2019, 04:38:43 PM »

Offline Farzooq

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Re: HBL -- Habib Bank Limited
« Reply #583 on: April 19, 2019, 01:07:29 PM »
HBL: Earnings expected to decline 63% YoY during 1QCY19

HBL will announce its 1QCY19 result on 24th April, 2019. We expect HBL to post earnings of PKR 1.7bn (PKR 1.15/share) during 1QCY19, down 63% YoY while decreasing 31% QoQ. Primary drags on the profitability include the one-off additional super tax charge that all banks are required to pay on CY17 PBT, and continuation of the high OPEX (+22% YoY/24% QoQ) era for HBL (on account of NY branch related costs and business transformation costs). Some support for the bank’s earnings is expected from a 12% YoY/9% QoQ hike in the bank’s NII, while NFI is expected to portray a jump of 15% YoY on the back of higher fee income. NFI on a sequential basis is expected to register a significant 35% QoQ uptick owing to lower FX losses (hefty FX losses of PKR 2.7bn were booked during 4QCY18). We expect the bank to announce a dividend of PKR 1.00/share for the quarter.
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Offline Farzooq

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Re: HBL -- Habib Bank Limited
« Reply #584 on: April 23, 2019, 02:54:20 PM »
HBL likely to announce earnings of PKR 2.07/share
We expect Habib Bank Limited (HBL) to post earnings growth of 9% QoQ to come in at PKR
3.0bn (EPS: PKR 2.07). The increased earnings are a result of 49bps expansion in NIMs and
lower provisioning charge for the quarter. We expect provisioning charge of PKR 679mn for
1QCY19 compared to PKR 2.95bn booked in the previous quarter.
Absence of reversals on workers welfare fund and one-off super tax charge partially offset
the aforementioned benefit during the quarter. HBL booked a net reversal of PKR 3.3bn on
workers welfare fund in the previous quarter. We also expect the bank to book PKR 1.9bn
on account of 4% super tax on 2017 earnings. Excluding the charge, the earnings would be
PKR 3.39/share.
We also expect the bank to announce a cash dividend of PKR 1.50/share along with the
result.
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Offline Farzooq

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Re: HBL -- Habib Bank Limited
« Reply #585 on: April 24, 2019, 01:40:38 PM »
1QCY19: Strong growth in total income, net reversals contributed to stellar QoQ growth in PBT

HBL announced earnings today for 1QCY19 at PKR 3.1bn (EPS: PKR 2.08/share), depicting a YoY decline of 33% but a 26% uptick on a QoQ basis despite higher tax rate this quarter. Major drivers for earnings this quarter that have contributed to a remarkable 116% QoQ increase in PBT include a total gain on FX income and derivatives compared to a hefty loss last quarter. Moreover a net reversal was booked this quarter against a heavy provisioning expense booked last quarter. A dividend of PKR 1.25/share was also announced for the quarter.

Result Highlights

·         NII of the bank settled at PKR 23.4bn for 1QCY19, rising 19% YoY as 63% higher interest expense was offset by the 39% rise in mark-up income. NII registered an uptick of 12% QoQ as well.

·         NFI of the bank depicted healthy improvement of 22% YoY / 60% QoQ. The bank booked a profit on FX income (and derivatives) of a total PKR 637mn compared to a staggering loss of PKR 3bn during 4QCY18 and PKR 478mn during 1QCY18. Moreover, fee income of the bank showed an impressive jump of 18% YoY.

·         The bank booked a net reversal of PKR 83mn compared to a hefty provisioning expense of PKR 3.2bn during 4QCY18 (owing to impairment charge on the equity book).

·         Higher OPEX (+21% YoY / 21% QoQ) owing to NY remediation/business transformation costs continued for the bank.

·         Effective tax rate was set at 62% for 1QCY19 vis-à-vis 36% SPLY due to additional super tax being booked this quarter on CY17 earnings.

 Recommendation

·         Currently, we have ‘BUY’ call on the stock with a Dec’19 target price of 152.3/share.
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Offline jahangir

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Re: HBL -- Habib Bank Limited
« Reply #586 on: May 22, 2019, 01:50:29 AM »
 :D what abot 99-87 area.


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