Baqar HussainWE Financial Services Limited.
We will present our forecast on the upcoming corporate results of Pakistan Petroleum Limited (PPL) and Bank Alfalah Limited (BAFL) in our today’s morning briefing as the meeting of their board of directors is going to be taken place on October 21, 2015.
PPL: Decline in oil prices to wipe earning at large
BAFL: Bulky rise in earning likely in 9MCY15
Despite expected rise in effective taxation and higher provisions, the bottom-line of BAFL is expected to witness a significant growth of 43% YoY in 9MCY15 on back of heavy rise in interest income and increased non-interest income. The PAT of the bank is likely to total Rs5,758 million (EPS: Rs3.62) in 9MCY15 versus a PAT of Rs4,015 million (EPS: Rs2.53) in 9MCY14.
The net interest income of the bank to grow by 34% YoY in 9MCY15 to Rs20,688 million as against Rs15,472 million in the similar period in CY14. This growth in NII would be on back of increased investment in government securities.
In addition to higher NII, the bottom-line growth would also boosted by likely 12% YoY surge in non-interest income to Rs7,236 million in 9MCY15 as against Rs6,444 million in the identical period in CY14. The provisions of the bank however would see a heavy rise of 144% YoY in 9MCY15 to Rs1,784 as against Rs731 million in 9MCY14.
Syed Zaki Hussain
