The country’s largest bank’s earnings per share increased to Rs6.7 in the quarter from Rs4.1 in the same period of previous year. PHOTO: EXPRESS
The country’s largest bank’s earnings per share increased to Rs6.7 in the quarter from Rs4.1 in the same period of previous year.
The result was higher than forecast primarily due to higher-than-expected capital gains, BMA Capital reported on Thursday.
Net interest income before provision expanded by 32.5% year-on-year to Rs19.2 billion in the first quarter of 2015 primarily due to higher interest income from PIBs, delayed asset re-pricing post-discount rate cut and tamed increase in funding cost.
At the same time, higher provisions of Rs555 million restricted an overall increase in the net interest income (NII) after provision to 31% year-on-year to Rs18.6 billion.
The bank’s non-interest income showed an increase of 44% year-on-year to Rs7.8 billion against Rs5.4 billion in the first quarter of calendar year 2014. The increase in non-funded income (NFI) can be attributed to a robust growth in capital gains to Rs2.2 billion – up 3.1 times – and higher fee income of Rs3 billion (up 16%).
The administrative expense rose 9% year-on-year to Rs11.1 billion from Rs10.1 billion in the first quarter of CY14, putting a drag on the earnings.
Published in The Express Tribune, May 1st, 2015.
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