KARACHI, Aug: 28: Bank of Punjab on Tuesday gave earnings surprise with a growth of 48 per cent, recorded as one of the highest on the banking sector.
The Board of directors which announced financial figures for the first half of the year to June 30, 2007 also declared bonus shares at 10 per cent (one-for-ten), which again was a boon for shareholders who scarcely expected any payout.
After tax profit of the bank increased by 48pc to Rs1,825m during the period, translating into earnings per share (eps) at Rs4.74. That was slightly higher-than-expected by analysts at some major stock brokerage houses and almost in line with others.
Analysts stated that the banks full year earnings would benefit from NIT’s bumper dividend of Rs6.20 per unit, amounting to after tax dividend of Rs877 million (Rs2.31 impact on eps).
In a pre-results review, analyst at a newly-incorporated stock brokerage firm listed salient features of BoP which included growth emanating in its agro-based operations constituting 20pc of loan book; maintenance of 3.5-4.0pc spread over Kibor on lending against Southern based bank’s composition of 1.5-2.0pc spreads; sustainable NIM’s of 4.7pc during CY07 ensuring growth in bottom line.
And deposit mobilisation through broad based schemes; and reported promulgation of merger with Punjab Provincial Cooperative Bank Limited by main sponsor government of Punjab.
ADAMJEE INSURANCE: Adamjee Insurance Company Limited posted 11 per cent increase in profit after tax to Rs1,181 million for the half year ended June 30, 2007, which translated into earnings per share at Rs11.56. The PAT in the comparable period last year was Rs1,064 million (eps Rs10.41).
The board of directors which met on Tuesday also declared interim cash dividend at Rs1.50 per share (15pc). The earnings fell slightly short of most analysts’ expectations, who were visualising eps between Rs12 and Rs12.50 per share.
In their pre-result review, analysts at a stock brokerage firm observed that with an increased paid-up capital (now Rs1,022m) and launch of new products and initiatives, AICL seemed set to obtain promising results.
The launch of UAE insurance business, retail insurance products like Faaslay Asaan and Livestock insurance, were expected to post a conservative (2Q07) net premium revenue growth of 2pc.
On the back of rising stock market during the last quarter (March-June 2007), the investment income was expected to post (QoQ) rise of around 55pc.
The actual growth in investment income revealed in the accounts on Tuesday was a 151 per cent to Rs530 million for the quarter ended June 30, 2007.
