It was just a few years back when NIB Bank had posted net loss of over Rs10 billion. But things have turned around quite quickly at NIB, evident from a much-improved performance in CY13. The banks after-tax profits have increased six-fold year on year at the back of some improvement in fundamentals and some one-off events.
Even a fleeting look at the performance of equity funds during FY14-to-date suggests that the competition between equity fund managers has been quite vigorous. So BR Research decided to throw some spotlight on the strategies adopted by the leading equity fund managers.
Improved administrative food prices have kept inflation subdued for the third consecutive month after it experienced huge increase in perishable food prices earlier. Ever since the demand pressures emanating from Ramzan and Eid spending played havoc, the PML-N government was all geared to smooth out the mandi system. That ensured the perishable food items to calm down substantially.
National Bank of Pakistan (NBP) is the only bank amongst the top-five banks which has not shied away from lending to the private sector of late. Its relatively higher ADR, of over 60 percent as per latest available numbers, is a testament to that. So, while its peers got criticised for lazy and complacent banking, NBP was lauded for doing what banks are supposed to do: lend.
Bank Alfalah Limited (BAFL) ended CY13 on a bright note, registering a slight increase in profit over previous year. The challenging operating environment, coupled with low interest rate scenario during much of CY13, kept the top line in check.
What is all that fuss about low discount rates and pegging of discount rate with the return on deposits? Meezan Bank (MEBL) certainly seems to be unfazed by all this. By virtue of being Shariah-compliant, the leading Islamic bank does not have to worry about return on deposits being pegged with discount rates.
A delay is not a good thing. The SBP’s first quarterly review for the Jul-Sep period was released last Friday. The late release of this otherwise sound document meant that there was little in the content that wasn’t already known. Still, the report carries valuable advice for the federal government.