UBL: Deposit growth to lift Net Interest Income; Initiate with Overweight stance – By AAH Research

<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We initiate coverage on UBL with a Dec-17 price target (PT) of PKR 267/share, offering an upside potential of 14% along with a dividend yield of 5.5%</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">NIM of the bank is projected to clock in at 4.4% for CY16, it is expected to remain subdued during CY17-20 due to the low interest rate environment and shrinking spreads as a result of the bulk of high yielding PIB investments maturing during the period.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We expect EPS to grow at a CAGR of 9.5% during CY17-20 led by shift in mix toward advances and growing deposit bases going forward.</span></li><li><span style="font-family:Arial, Hel...