National Bank of Pakistan: 1Q2016 EPS expected to rise by 62% YoY to Rs2.49/share - By JS Research
<p>National Bank of Pakistan (NBP) is scheduled to announce its
1Q2016 result on April 28, 2016, where we expect NBP to post 62% YoY higher
1Q2016 earnings of Rs5.30bn (EPS: Rs2.49).</p><p>We expect Net Interest Income (NII) for the quarter to grow
by 20% YoY; however, Non-Core Income is likely to decline by 7% YoY on
potentially lower capital gains.</p><p>On a sequential basis, we expect earnings to decline by 25%
QoQ led by 22% QoQ lower Total Income.</p><p>We reiterate our ‘Hold’ stance on NBP with a Target Price of
Rs55. Presently, NBP offers a 2016E dividend yield of 9% and trades at 2016E
P/B of 0.70x, ~50% discount to our banking sector due its weak ROE generation
potential.</p>
