Monday, June 18, 2012

Weekly Insight (June 15, 2012)

MCB - Lower provisioning to support bottomline growth

MCB posted after tax profit of PKR 5.6bn in 1Q CY12 which was higher by 12% on YoY basis while showed significant jump of 44% on QoQ basis. Growth was attained despite 2%YoY and 8%QoQ decline in net interest income of the bank, whereas lower provisioning was the primary factor which drove bottomline during the period.

 

Auto sales up by 12% MoM; PSMC hauls YoY passenger cars sales

The total industry sales witnessed a 12% MoM growth to 23,523 units in May12; the 11mo FY12 sales however stagnated at 201,352 units. The auto industry sales have witnessed a cumulative increase of 15% YoY to 159,975 units in 11mo FY12. The cumulative sales figure has been pulled up primarily by a healthy increase of 31% YoY in PSMC sales to 100,805 units in 11mo FY12.

 

Harvest season restricts local cement dispatches

Local cement dispatches were down 7% MoM to 2.08mn MT in May12 from 2.24mn MT in Apr12. Sales were down on a monthly basis due to the harvest season which caused shortage of labor in the market, hurting construction activities in the country. However, on a YoY basis, local demand remained healthy and posted 10% growth compared to similar period last year.

 

MPS - A call for fundamental reforms

The economy is currently facing numerous challenges including low GDP growth which continues to miss targets, an uncontrolled fiscal deficit and diminishing capacity of financial account to finance current account deficit. It is noteworthy that the current account deficit itself is still relatively lower (1.7% of GDP) compared to average deficit of 4% of GDP during FY05-11.

 


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