2067 replies to this topic

[Amin Khan]

MasshAllah... Cheetha Action main agiya hay .. ALLAH Khair kary

[fasee]

hain...me zara deer ke liye bahar kiya giya cheeta hospital say dishcarge bhi hu giya.

yeh tu ICU me tha

me tu churiyaan lay ke 171 ka wait ekr raha tha...

[Amin Khan]

MCB to divest KBL Stake

MCB Bank Ltd (MCB) has announced it has accepted a bid from a consortium led by United Bank Ltd (UBL) for its 17.6% stake (30mn shares) in Khushhali Bank Ltd (KBL). The latter is the largest microfinance bank in Pakistan with geographical outreach extending to over 90 districts through 109 branches.

The stake sale is priced at ~PkR20.44/share which, going by MCB’s cost of PkR10/share, should lead to a small EPS gain of PkR0.27 for MCB. The deal prices KBL at PkR3.48bn.

The buying consortium includes UBL, ASN-NOVIB Microcredits, responAbility Global Microfinance Fund; Rural Impulse Fund II and ShoreCap. UBL’s current stake in KBL stands at 11.7%. Recall that in 1HCY11, the SBP had invited EOIs from strategic investors for transferring 79.2% stake in KBL alongside management control to a strategic investor.

Considering Telenor Pakistan acquired a 51% share in Tameer Microfinance Bank for ~PkR1bn in Nov’08 and launched branchless banking, we believe UBL is likely looking for synergies with its branchless banking operations (the Omni brand). Besides MCB, other major shareholders in KBL are NBP (23.5%) and ABL (11.7%) where it is as yet unclear whether these are divesting their stakes. Assuming they have divested at the same price, EPS impacts for both NBP and ABL would be PkR0.18/share.
(AKD)

[Lion Heart]

MCB accepts UBL’s offer for KBL

KARACHI: MCB Bank Ltd has accepted the offer of United Bank Ltd (UBL) consortium for the sale of its 17.6 percent shares in Khushhali Bank Ltd (KBL) at Rs 20.44 per share. According to MCB ON Thursday, consummation of this sale is conditional upon certain regulatory consents and approvals. UBL consortium comprises of UBL, ASN-NOVIB Microkredietfonds, responsAbility Global Microfinance Fund, Rural Impulse Fund II SA SICAV-FIS and ShoreCap II Ltd. app

[fasee]

aaj apni supprt 176 bhi tor giya.

lets see aur kitna dsocunt marta hai...

wud it fall back on its 164 level..??

[Amin Khan]

MCB CY11 Results Review

MCB posted a profit after tax of PKR 19.42bn (EPS: PKR 23.23) for CY11 and gave out a PKR 3/share cash dividend and a 10% bonus. The earnings were mostly driven by strong growth in the top line, aided by high yields, and contained provisions charge.
MCB’s recently reported profit before tax was very close to our expectations; however, its taxation was more than we had foreseen, which led to a lower than expected bottom line. The higher tax is largely attributable to the tax effect of prior year’s provisions. According to the conference call, flood surcharge also came into play.

Earnings driven by expanding NIMs
The year saw a substantial rise in margins, because of yields rising by more than cost of funds. According to MCB’s conference call, cost of funds rose in CY11 due to a high interest rate environment for the most part of the year and increase in expensive term deposits. As these deposits will mature in the first half of 2012, and interest rates will remain at the same level, management of MCB expects these costs to go down. We, however, are not too optimistic on this front as fixed deposits (which include term deposits) make up only ~ 19% of their total deposits and other deposit rates are largely independent of the monetary policy rate.

Asset quality has worsened, but still not a cause of concern
MCB’s non-performing loans rose by 8.64% YoY in CY11, and by only 0.76% in 4Q. According to MCB’s conference call NPLs appear to have peaked out; and there will likely be no new NPL accretion in the year. As a result provisions charge will only encompass the ageing classified loans. A reversal in provisions is also likely for 1QCY12, as in January NPLs reduced by around PKR 200m, according to the conference call.

Operating expenses limit bottom line growth
MCB’s administrative expenses rose by 28%, due mostly to salaries and rent, taxes, insurance, electricity etc. Moreover, reversal in pension funds was lower than the previous year. The rise in administrative expenses was only to be expected as MCB had expanded its network by 40 branches in 2011 and inflation had been high. In 2012 MCB plans to open 40 more branches, which will make operating expenses remain high during the year.

Other takeaways from the analyst briefing

• MCB has decided to off-load its 17.6% stake (# of shares: 30m) in Khushhali Bank because it was not getting any return on it. MCB will sell its PKR 300m worth of stake for PKR 613m (PKR 20.44/share).
  
• The recent PKR 136bn cash injection into the Power Holding Company will affect MCB very little as its stake was very little, at only PKR 8.9bn out of the total PKR 136bn.
  
• MCB expects its spreads to remain the same as 2011, in 2012, due to its expected reduction in cost of funds. It expects policy rate to remain at the same level.
  
• MCB will be more focused on private sector credit than GoP’s borrowings in 2012.

Recommendation
Our target price for MCB is PKR 187.55. As of February 23, 2012 MCB was trading at PKR 173.26 with a 8.25% upside to our target price, we, therefore recommend a HOLD stance on the scrip.
(Taurus)