ABL likely to post 2Q 2015 earning down

26% on tommorow
Jahangir Hayat
LAHORE: Allied Bank Limited (ABL) is likely to
post 2QCY15 EPS Rs2.54, down 26% YoY,
experts observed.

We have projected the banks 1HCY15 PAT at

PKR7.2bn, translating into EPS of PKR5.86, flat
as compared to the corresponding period last
year. 2QCY15 EPS is expected to clock in at
PKR2.54, down 26% YoY. The bank is also
expected to announce a cash payout of
PKR1.75/sh taking 1HCY15 dividend to
PKR2.75/sh, they said.
Allied Bank Limited (ABL) is expected to
announce its 2QCY15 financial results on
August 05, 2015.
It was reported that Net interest income (NII)
would remain strong largely owing to lagged

asset re-pricing of assets together with yields

locked in on PIB portfolio of the bank. Liability
side in contrast reprices with immediate effect
and would thus result in notable plunge in
interest expense. Overall, net interest income
(NII) would likely post 20% growth when
compared to the same period last year.
We have projected net interest margin (NIM)
of the bank at 4.7%. 2. Non-interest income,
on the other hand, is expected to remain
weak largely due to a high base impact as the
bank posted substantial other income during
the corresponding period last year.
The bank may however recognize some
proportion of its sizeable unrealized capital
gains on PIB portfolio which may lead to
earnings surprise during the quarter.
NPL provisioning might disappoint ABLs NPL
provisioning for the 1Q clocked in at
PKR728mn against a reversal of PKR37mn
during 1QCY14. This was largely driven by
sharp spike in NPLs due to delinquency
related to Byco petroleum.

It was said that the bank is also required to

provide for the remaining amount of the loan
during 2QCY15 which is why we are
anticipating a substantial increase in NPL
provisioning of the bank and have projected it
at PKR680mn while NPL stock is projected at
PKR24bn, displaying an increase of 3% during
1HCY15.

Owing to easing inflation and bleak oil prices

outlook, there can be another interest rate cut
by SBP. This will result in further shrinkage of
the banks margin leading to reduced
earnings and PT, it was said.