By: IGI Finex Securities Limited
BAHL: In line with expectation the bank reported CY15 earnings of PKR 7.4bn or PKR 6.7/share (4QCY15 earnings of PKR 2.1bn or PKR 1.9/share), registering a growth of +15%YoY. The bank along with the result declared a cash dividend of PKR 3.5/share.
Major surprise came on higher than expected provision charge of PKR 1.7bn against advances and additional PKR 197mn provisioning against diminution in investment value. As a result overall provision charge for the bank climbed up to PKR 1.9bn compared to PKR 0.6bn in CY14 – a 2.5x time growth.
Bank’s net interest income grew by +30%YoY, led by a meagre +2%YoY growth to PKR 25.4bn in interest expense , while interest earned should a healthy growth of +14%YoY to PKR 50.2bn.