National Bank of Pakistan (NBP) keeps defying the odds. The largest public sector bank posted its 1QCY16 financial results yesterday, showing an impressive 23 percent year-on-year growth in after-tax profits. Recall that the ongoing banking result season has seen most banks posting depressed earnings, owing to a variety of reasons, but NBP seems to have stood out.
The oil and gas exploration and production sector is desperately waiting for a respite! Its been a fall in earnings, quarter after quarter. Pakistan Petroleum Limited (PSX: PPL) has too been a victim of lower crude oil prices.
The key factor affecting Hub Power Company Limited's (PSX: HUBC) earnings over the last couple of years has been the operations and maintenance (O&M) activity. FY14 was a year of overhaul at the IPP ensuing in tepid growth in the firm's bottom line. Absence of any major overhauls and repairs in FY15 lifted the annual earnings. And though it seemed that HUBC's financial performance will be once again marred by high O&M charges after weak earnings in 1HFY16, it pleasingly recovered in 9MFY16 due to a better latest quarter.
Unit sales for Pakistan Suzuki Motors reportedly contracted slightly in the first three months of this year however recent price hikes announced by the company have ensured that its top line for the first quarter managed to register a slight improvement.
There is a misconception amongst the economic intellectuals and media commentators on the law of sending money outside the country. The general perception is that there are restrictions on remitting foreign exchange by Pakistan residents.
Low interest rates seem to have done the exact opposite to banks profits this season, what high non-interest income did last year. Faysal Bank (FABL) reported its 1QCY16 financial results yesterday, showing a 27 percent dip in pre-tax profits, year-on-year.