The bank reported an unconsolidated EPS of PKR10.07, up 110% YoY. This took the cumulative 9MCY23 EPS to PKR26.35, up 96% YoY. Along with the result, bank also announced an interim cash dividend of PKR 4.50/sh.This took 9MCY23 payout to PKR 9.00/sh.
Net interest income for the quarter increased by 68% YoY to PKR 34.3bn due to higher interest rates. Similarly, in 9MCY23, NII 56% YoY to PKR85bn compared to PKR54bn in SPLY. Interest income surged by 79% YoY to PKR 01.0bn, while the interest expense came in at PKR 66.7bn, up 85% YoY in 3QCY23.
Cost to income ratio for the 9MCY23, reported at 48.17%, while gross ADR recorded at 46.8%. The bank is of view that it will maintain same level of ADR in future.
Islamic banking has exhibited a robust financial performance, as indicated by 133% YoY increase in PBT, reaching at PKR11.9bn, respectively. This impressive growth is complemented by a substantial 34% Year-to-Date (YTD) increase in total deposits, totaling at PKR238bn. Moreover, the bank opened 16 new branches during the period, reinforcing the bank’s market presence.
The investment portfolio of the bank reflects a strategic allocation, with a predominant 79.55% invested in Pakistan Investment Bonds (PIBs), and followed by TFCs/Sukuk at 16.02%.
The Capital Adequacy Ratio (CAR) has witnessed a notable uptick, standing at 15.81% in September 2023 compared to 14.3% in the same period last year. However, the impact of currency devaluation and heightened taxation impacted the CAR during the period.
In terms of advances, the bank demonstrates a diversified portfolio. Notably, the Textile sector commands a significant share at 33%, followed by Wholesale and Retail Trade at 13%, Food and Allied at 20%, and others at 34%. This diversified approach mitigates risks associated with overdependence on a particular segment.
During the said period, the bank has successfully inaugurated 25 new branches, thereby increasing its total network to 1,107. The bank remains committed to its expansion policy and intends to open more branches to further extend its footprint.
Current Accounts, both Remunerative and NonRemunerative, collectively contribute 51% to the deposit base, with Non-Remunerative Current Accounts leading at 38% and Remunerative Current Accounts at 13%. Fixed Deposits, totaling PKR 272 billion, constitute 14%, while Savings Deposits make up 35% at PKR 667 billion. This diversified deposit base aligns with prudent banking practices, ensuring stability and adaptability in varying market conditions.
Going-forward, the management shared that the it will continue the its dividend policy based on the anticipated improved performance of the bank.
Important Disclosures
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