The board meeting for the CY15 financial results of Habib Bank Limited (HBL) is scheduled to be held on February 23, 2016, while Kot Addu Power Company Limited (KAPCO) is also planned on same day for the period 1HCY16.
HBL to post decent growth in CY15: Habib Bank likely to post 19% growth in earnings as profit after taxation to increase at Rs 36.92 billion which translates into EPS of Rs 25.18 in CY15 as compared to Rs 31.11 billion (EPS: Rs 21.21) in CY14, on unconsolidated basis. Surge in profitability likely due to higher net interest income, lower provisions and surge in non- funded income. We expect net interest income to swell by 13% Rs 76.17 billion in CY15 against Rs 67.43 billion in CY14 on account of investment in PIBs which have higher yields. Similarly, non interest income to surge 77% Rs 34.91 billion versus Rs 19.67 billion due to higher fee income and gain on sale of securities. The Bank is also expected to announce a final cash dividend of Rs 5.5/ share, taking the total cash dividend of Rs 16/share for CY15.
KACPO to post decline in earnings growth: We expect company to post drop in earnings by 9%, translating into profit after taxation of Rs 4.38 billion (EPS: Rs 4.98) versus Rs 4.83 billion (EPS: Rs 5.49) in same period last year. This is expected owing to lower penal income and higher repair & maintenance cost. Net sales likely to decline by 20% to Rs 46.87 billion from Rs 58.39 billion in 1HFY15 mainly due to decrease in LSFO prices. Other income likely to fall by 50% to Rs 1.92 billion as against Rs 3.84 billion corresponding period last year mainly due surge in lower penal income from overdue receivables. We expect Kapco to announce interim cash dividend of Rs 4/share.
By: Azee Securities Private Limited