Habib Bank

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HBL has reported 4QCY22 EPS of PKR7.27, up 28% YoY but lower by 7% QoQ - an earnings beat. HBL trades at a CY23f P/B of 0.3x and P/E of 2.7x and remains a top banking play. HBL trades at a CY23f P/B of 0.3x and P/E of 2.7x and remains a top banking p...

Pakistan banks may report sequentially flat profit in 4QCY22 (up 19% YoY). There is room for minor dividend misses. NII growth should be offset by normalized fx income and high opex. Asset quality is not a concern, for now. Valuations are very cheap....

SBP has reduced the additional CET-1 requirements for systemically important banks by 50bps. This is beneficial for HBL, NBP and MEBL, allowing more breathing room on capital. This is likely motivated by recent mark-to-market hits on bonds and IFRS-9...

HBL has reported 3QCY22 EPS of PKR7.85, up 27%YoY and 3.4x QoQ – an earnings beat. Strong NII, lower provisions and a lower effective tax rate have led the deviation. We maintain a Buy rating on HBL with a TP of PKR140/sh.

Normalized tax to lead to strong lift in earnings in 3Q. Expect margin expansion to continue alongside swift balance sheet growth. Best-in-class names are MEBL and UBL.

A US district court has dismissed primary liability claims against HBL but has sustained secondary liability claims. Civil proceedings may commence, but HBL has the room to renew its motion for dismissal on jurisdictional grounds. HBL is very cheap b...