Abdul Karim Muhammad’s Post

The financial strategy behind KIBOR (Karachi Interbank Offered Rate) revolves around establishing a reliable benchmark interest rate that guides lending and borrowing costs in the financial market. Here's a breakdown of its strategic significance: 1. Benchmark for Interest Rates: KIBOR serves as a reference point for setting interest rates on a variety of financial products such as loans, mortgages, and corporate bonds. It ensures that the cost of borrowing remains aligned with market conditions, helping financial institutions price their credit offerings more effectively. 2. Liquidity Management: Banks use KIBOR to manage their liquidity. By lending or borrowing based on the prevailing KIBOR rate, banks can manage short-term cash needs, keeping their operations smooth. If a bank has excess funds, it can lend to other banks at the KIBOR rate, earning interest while improving the overall liquidity of the system. 3. Risk Management: KIBOR allows businesses and investors to manage interest rate risk. Many financial products are linked to KIBOR, and firms can hedge their positions against fluctuations in interest rates by using derivatives like interest rate swaps or futures contracts that are KIBOR-based. 4. Market Stability and Transparency: KIBOR adds transparency to the financial system by providing a clear and observable rate at which banks are willing to lend to one another. This transparency helps reduce the information gap between borrowers and lenders, contributing to market stability. 5. Regulatory Control and Monetary Policy: KIBOR is influenced by the monetary policy set by the State Bank of Pakistan (SBP). The central bank may raise or lower policy rates to influence KIBOR, which in turn affects lending rates throughout the economy. Through this mechanism, KIBOR becomes a tool for controlling inflation, encouraging or discouraging borrowing, and stimulating economic activity. 6. Cost of Credit: The level of KIBOR directly affects the cost of credit in the market. A higher KIBOR indicates tighter monetary conditions, making borrowing more expensive, while a lower KIBOR suggests more affordable borrowing costs. This impacts not only banks but also businesses and consumers. #KIBOR #Financial #strategies

Flash Note Thursday, August 1, 2024 *BAFL | Result announcement: 2qCY24* *Earnings*: Bank Alfalah Limited (BAFL) announced its financial result for the second quarter of the year 2024. As per the financial result, the Bank reported unconsolidated earnings of PKR 10.7bn (PKR 6.79/share) during 2QCY24 compared to PKR 7.88bn (PKR 5.00/share) last year, up by 8%q/q and a jump of +36%y/y. *Dividends/Payouts*: The Company announced a cash dividend of PKR 2.0/share along with the result taking the cumulative dividend for 1HCY24 to PKR 4.0/share. *Operating performance*: During the 2QCY24 period under review, the Bank reported net-interest income of PKR 30.6bn (down by -2%y/y) and non-interest income of PKR 12bn (up by +88%y/y). As a result, the bank's total revenue clocked in at PKR 43bn (up by +13%y/y). Moreover, BAFL recorded operating expenses of PKR 20bn (up by +23%y/y), however the higher total revenue supported the bank’s cost/income ratio which increased to 47% during 2QCY24 against 43% in the same period last year. The bank booked a provision charge of PKR 2bn during 2QCY24 compared to a provision charge of PKR 4bn in 2QCY23. The tax charge for this quarter came at PKR 10bn (effective tax rate of 49% compared to 53% in 2QCY23). Link: https://lnkd.in/ggnZwgKM *IGI Securities (BRP-009)* UAN: +92 21 111 234 234 Ext: 974 | Fax: +92 21 35301726 Website: www.igisecurities.com.pk Address: 7th Floor, The Forum, Suite No. 701-713, Block-9, Clifton, Karachi-75600, Pakistan

Company Updates: Karur Vysya Bank Karur Vysya Bank Guidance Update Loan Growth: Expected to rise by 14%-15% in FY25 Net Interest Margin (NIM): Projected to be at 4% by Q3 FY25 Slippage Ratio: Expected to stay at 1% Credit Cost: Forecasted at 0.75% Credit-Deposit Ratio: Targeted between 83%-85% This guidance signals strong performance ahead for Karur Vysya Bank, providing valuable insights for investors. #CompanyUpdates #FinancialNews #MarketInsights #InvestorAlert #KarurVysyaBank #BankingSector #cnbctv18market #proinvestor #proinvestorai

*Flash Note* Wednesday, April 24, 2024 *BAFL | Result announcement: 1QCY24* *Earnings*: Bank Alfalah Limited (BAFL) announced its financial result for the first quarter of the year 2024. As per the financial result, the Bank reported unconsolidated earnings of PKR 9.91bn (PKR 6.28/share @1,577mn shares) during 1QCY24 compared to PKR 10.74bn (PKR 6.81/share @1,577mn shares) in the same period last year, an increase of +8%q/q while a decrease of -8%y/y. *Dividends/Payouts*: The Bank announced cash dividend of PKR 2/share along with the result. *Operating performance*: During the 1QCY24 period under review, the Bank reported net-interest income of PKR 31bn (up by +10%y/y) and non-interest income of PKR 8bn (up by +19%y/y). As a result, the bank's total revenue stood at PKR 39bn (up by +12%y/y). Moreover, BAFL recorded operating expenses of PKR 19bn (up by +27%y/y), while the bank’s cost/income ratio improved to 49% (1QCY23: 43%). The bank booked a provision reversal of PKR 0.1bn during 1QCY24 compared to a provision charge of PKR 0.5bn in the same period last year. The tax charge for this quarter came at PKR 10bn (effective tax rate of 50% compared to 49% in 1QCY23. Link: https://lnkd.in/dvu-jkW4 *IGI Securities (BRP-009)* UAN: +92 21 111 234 234 Ext: 974 | Fax: +92 21 35301726 Website: www.igisecurities.com.pk Address: 7th Floor, The Forum, Suite No. 701-713, Block-9, Clifton, Karachi-75600, Pakistan

BAFL declares dividend as profit surges 53% in Q2 CY24 Bank Alfalah Limited (PSX: BAFL) has revealed its financial statement today for the quarter year ended June 30, 2024, as per which the bank posted a profit worth Rs12 billion [EPS: Rs7.59], depicting a surge of 52.8% YoY, compared to Rs7.85bn [EPS: Rs4.57] in the same period last year (SPLY). Along with the financial results, the board of directors of BAFL has also announced an interim cash dividend for the period ended June 30, 2024, at Rs2 per share i.e. 20%. Read full story at: https://lnkd.in/evGxXhHV

Q4 results (Jan-March-2024) *Kotak Bank* *Net profit of ₹4,133 crore* rises 18%; *Total Loan Book*= *Rs 3.91 lakh cr* *Total Deposit Book* = *Rs 4.48 lakh cr* *NIM* (Net Interest Margin) stood at *5.28%* *Gross NPA* ratio *1.39%* *Net NPA* ratio at *0.34%* *MD and CEO Ashok Vaswani* said the bank has been _seeking guidance from the RBI_ on ```how to build resilient systems``` , and is _committed to mitigating the RBI action and getting back to pre-action growth levels._

Pakistan Listed Banks Comp Sheet (May 09, 2024) Pakistan listed banks profitability clocked in at Rs152bn up 21% YoY in 1Q2024. This was primarily driven by jump in Net Interest Income (NII) amid high interest rates, and Non Interest Income. In US$ terms listed banks profit was also up 13% YoY to US$545mn in 1Q2024. Deposit growth of banks was 19% YoY in 1Q2024. Banks are currently trading at 2024E PE of 3.0x, PBV of 0.7x, Dividend Yield of 16% and ROE of 26%. Regards Sunny Kumar Topline Research

Aap chronology samajh lijiye 🤐 1)First push every citizen from the middle class and lower income groups to the digital economy so even a pakoda seller becomes dependent on the banks. 2)Load them with inflation and direct indirect tax to make them financially weak. 3) Once the account holder's financial condition gets worse then loot them with fine for not maintaining minimum balance.🤑🤑 Banks k mann ki baat: ✨😁 ☀️Saving account me Paisa rakhoge to peanut 🥜 interest milega. ☀️Bank se loan maagoge to 2-3 times interest dena padega ☀️Credit/debit card annual fee alag se lagega ☀️ATM se khud ka paisa bhi nikaloge to charge lagega. 4) Aur paise khatam ho jaayen account me to fine bhi lenge due to not maintaining minimum balance 😂 🤑🤑 Gajab business model 😀😀 #inflation #tax #banks

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Listed banks in Pakistan have shown a remarkable performance with a 36% increase in profits to USD 2 billion in 2023. In PKR, profits surged by 86% to reach Rs 572 billion. Despite this sustained growth, banks, on average, trade at a price-to-earnings ratio of 3 times and a price-to-book ratio of 0.7 times, with a solid return on equity of 26%. This suggests that the market may not fully appreciate their potential. Investors could consider this as an opportunity to benefit from the banks' strong performance and attractive valuations.