<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">HBL's 1HCY17 earnings were down 3%YoY on spread compression,
credit quality infection an higher expenses (tax and otherwise). Pick up in
advances was the key highlight where materialization of CPEC investments led
11.2%YoY growth in loans. Corporate book continues to form the major chunk,
however HBL is also keenly building on its consumer portfolio which while
accretive to margins can lead to higher domestic NPLs. This together with
continued pressure on NIMs at least until CY18F when interest rates are
expected to reverse, has led us to revise down our CY17F/CY18F earnings
estimates by 5%/7%. Consequently our TP has also been brought down to
PkR253.1/sh. Undergoing steep correction, HBL's stock price is currently
hovering around levels last seen i...
