01172017Tue
Last update: Tue, 17 Jan 2017 11am

BR Research: All

Archive: 

IGI Insurance (KSE symbol: IGIIL) has been the investors darling for some time now. Subsequent to its downfall in 2012, IGIIL has made an impressive comeback by managing to deliver overwhelming profitability growth rates year after year.
National Bank of Pakistan (NBP) is in a pretty good space. Most of it is to do with the easy money from PIBs and NBPs laudable efforts to improve recoveries on NPLs. Combine that with a vibrant treasury arm of the bank, and you has the perfect recipe for a strong bottom line.
NIB Bank can proudly claim to be one of the very few banks in Pakistan doing the actual banking. They lend more than they invest in government securities. But doing banking comes with a cost and for NIB it seems to have come with quite a cost. Also tells why others are just happy investing in PIBs and yielding lucrative returns.
Pakistani banks believe in Pakistan like none other. The bond they have with investing in sovereign papers, is reaping results. The bond they have is the Pakistan Investment Bond (PIB) and that is what did wonders for most banks, big or small, in CY14. UBL was no different. Being a larger sized bank, it did not shy away from investing heavily in PIBs, which for most part of the year, yielded lucrative risk-free returns of 12.5 percent.
Seven months into the fiscal year 2015 and credit supply to private sector is still to pick up. According to central banks latest data release, credit off take to private businesses in 7MFY15 was down 43 percent year-on-year.
No matter how tight the regulatory conditions may be for pharmaceutical players, a player as big as GlaxoSmithKline Pakistan (KSE symbol: Glaxo) has less to worry. Even in the toughest times, CY14 turned out to be a phenomenal year for Glaxo with its bottom line boasting a rise of 59 percent year-on-year. This is by-far the highest ever profitability growth level achieved by the company over a six-year period.
Samba Bank Limited may well be a smaller bank, but its CY14 achievements are by no means small. From top to bottom, Samba ticked all the right boxes. The after-tax profits nearly trebling year-on-year was a just result. Samba has an un-characteristically high portion of advances in its asset mix, but it also did not need an invitation to taste some PIB feast on offer during CY14.