Habib Bank Limited (HBL): Despite receding spreads, pretax profits to edge up by 1%QoQ – By IGI Research

<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Habib Bank Limited (HBL): On a consolidated basis, we expect bank to post earnings of PKR 7.0bn or (EPS: PKR 4.78) down by 22%QoQ.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">For HBL, we estimate interest income to rise by +4%QoQ to PKR 20.2bn, with annualized NIMs declining by ~4bps on quarterly basis.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Despite an +8%QoQ growth in fee income and steady capital gains expected, we estimate non-interest income to show negligible growth.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">The major cut in profitability is expected to be a result of super-tax provision wherein, effective tax rat...