BAHL 2QCY13 EPS expected at PKR1.08 – Elixir Research
By: Ujala Adnan,
(+92-21) 3569 4679
Elixir Securities Pakistan (Pvt.) Ltd
BAHL is expected to announce its 1HCY13 financial results on August 29, 2013. We expect BAHL to post its 1HCY13 PAT of PKR2.2bn (EPS: PKR2.2), down 10% YoY. 2QCY13 EPS is expected to clock in at PKR1.1, down 16% YoY.
Faltering NIMs amid improving CASA
BAHL’s 2QCY13 net interest income is expected to fall by 13% YoY due to weak interest rate environment and upward push in cost of funds caused by change in minimum savings rate calculation on average balances. However, BAHL would have some support from its high proportion of Islamic deposits during 2QCY13, which are not subject to 6% minimum savings rate. We also expect BAHL’s management to have made efforts for CASA improvement due to fragile interest rates. We estimate BAHL’s 2QCY13 net interest income to clock in at PKR3.3bn, and contribute ~78% to its total revenue stream.
NFI is in limelight too
BAHL is now keenly targeting to improve its non funded income (NFI). We expect a 14% YoY growth in BAHL’s non funded income (NFI) going forward. NFI will contribute ~22% to the total revenues.
Investment outlook; BUY maintained
BAHL is currently trading at CY13/14E PBV and PER 1.4x/1.3x and 8.0x/7.6x. Our Jun-14 PT of PKR39/sh offers a 19% upside together with a dividend yield of 8.9%. BUY