EPS figures calculated from Net Profit / 1,737,472,086 shares outstanding.
BOS share price as of 27 Jul 2008 was 2.92 dhs, so 2008 estimated PE is about 2.92 / 0.52 = 5.6, based on Q2 earnings, which is much less than the market average PE of about 17. 2008 PE estimate based on H1 earnings is 2.92 / 0.36 = 8.1, which is a bit more but shares still look cheap compared to most other UAE bank stocks which have PEs of around 10-12 for Q2. But ...
... there was the addition of some income from a convertible bond so that boosted Net Profit by substantially more than the increase in Gross Profit (Net Interest Income).
BOS shares fell 2% to AED 2.92 from just one small trade today. It will be interesting to see if there's any reaction tomorrow.
[edit] Corrected EPS, PE, etc after recalculating with correct number of shares (had used 1.25 billion) [/edit] _________________ UAE IPO list | posting guidelines
Last edited by sharewadi on Sun 27 Jul 2008 19:02; edited 2 times in total
Ah, here we are. BOS Net Profit was helped along by the addition of AED 117 million from the bond conversion. That explains the odd headline also - BOS didn't include it in their net profit. But perhaps it's a more fair headline in a way since that extra income is a one off thing, or irregular at least.
Press Release 27 July 2008:
Bank of Sharjah's First Half net profit reaches 195 Million
SHARJAH: Bank of Sharjah's (BOS) remarkable performance for the first half was driven by the robust growth in its core banking activities, despite the decline in the UAE financial markets during this period. The growth in the bank's commercial activity was attributed to the continued expansion of the UAE economy.
For the period ending June 30, 2008, Bank of Sharjah generated net profits of AED195 million, an increase of 27 per cent compared with AED 153 million for the same period of last year. Moreover, it registered an additional profit of AED 117 million in shareholder's equity due to cumulative changes in the fair value of investments. The bank's total profits of AED 312 million represent 116 per cent increase over the corresponding June 2007 figure of AED 144 million.
During the first half, the bank strengthened its balance sheet which grew by 18 per cent to reach AED 12.7 billion compared with AED 10.8 billion on December 31, 2007, as a result of the increase in loans and advances, deposits, and equity.
Assets growth was mainly driven by the increase in loans and advances. Loans and advances reached AED 6.9 billion growing by 29 per cent over December 31, 2007, and 48 per cent per cent over June 30, 2007 (AED 4.6 billion).
Customer deposits reached AED 7.2 billion compared with AED 6.3 billion as at December 31, 2007 representing a healthy growth of 14 per cent. However, the growth in deposits compared with June 30, 2007 figure of AED 4.5 billion was a significant 59 per cent. This outstanding growth demonstrates the success of the bank's strategy of attracting retail as well as institutional deposits.
During the first half, the bank's equity grew substantially by 64 per cent to reach AED 3.7 billion from AED 2.3 billion on December 31, 2007, as a result of the bond conversion. The bank has successfully converted 97.5 per cent of its AED 500 million outstanding bonds issue. The conversion has added AED 1.46 billion to the bank's equity, due to the AED 2 premium received on each bond reflecting investors' confidence in the bank's strategy and positive future outlook.
As of June 30, 2008, the Bank's book value per share increased by 36 per cent to AED 2.16 from AED 1.59 as of December 31, 2007 after appropriation of the dividends paid during the period.
The solid growth in the balance sheet was reflected in the bank's improved profitability. Net income for the period reached AED 195 million representing a 27per cent increase over last year's figure of AED 153 million. Core banking income was AED 215 million registering a 26 per cent increase over last year's figure of AED 171 million, as a result of the sustained growth in the bank's commercial activity.
As a result of the volatility and decline in the UAE financial markets, the bank's revaluation loss for the period was AED 23 million. This loss was mitigated by the AED 117 million fair value gain on available-for-sale investments that is reported in equity, in addition to another AED 55 million of gain realised on investment property and other investments that was reported in other income.
Net interest income for the period registered a significant increase of 34 per cent growth to reach AED 148 million up from AED 110 million for the same period of last year. This increase resulted from the healthy growth of 48 per cent in loans and advances, and 59 per cent in customer deposits over June 2007 figures.
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum
Disclaimer: Investing in stocks is risky, you can lose some or all of your money and/or other assets. Anything you read on this site should be regarded as the opinion of the author only and is not to be taken as advice to buy, sell, or hold stocks and/or any other investments. Seek professional advice and do your due diligence before making investment decisions. In particular, do not assume anything you read on this site is correct or accurate. You should accept that only you can be responsible for any investing decisions you make.
2008 FY
FAQ
Search
Print-friendly
Profile
Private messages
Register
Log in
