By: BMA Capital Management Limited
Allied Bank Limited (ABL) reported earnings of PKR11.9bn (EPS: PKR10.4) for 9MCY15, posting a nominal growth of 3%YoY from PKR11.6bn (EPS: PKR10.1) in 9MCY14. The result was in line with our estimates.
The result announcement also accompanied an interim cash dividend of PKR1.75/sh, taking the total payout during the period to PKR5.25/sh.
For 3QCY15 alone, the bank reported earnings of PKR4.5bn (EPS: PKR3.9), up 1%YoY.
During 9MCY15, the bank’s NII reported a growth of 35%YoY to PKR26.8bn compared to PKR19.8bn in 9MCY14. At the same time, provisioning expenses clocked in at PKR474mn in 9MCY15 against reversals of PKR44mn in 9MCY14, which kept profitability growth in check.
The bank’s non‐interest income reported a decline of 22%YoY during the period, standing at PKR7.8bn mainly on account of significantly lower capital gains realized which amounted to PKR602mn against PKR3.4bn registered in 9MCY14.
We currently have an Accumulate call on the scrip with a TP of PKR109/sh. On last closing, the bank is trading at forward P/E and P/B multiples of 7.8x and 1.3x respectively.