(BOS) Bank of Sharjah discloses 3rd quarter, 2008 financial results
(BOS) Bank of Sharjah discloses management report on 3rd quarter, 2008 financial results
Bank of Sharjah (BOS) profit figures for third quarter 2008 are (EPS annualised in brackets):
EPS figures calculated from Net Profit / 1,737,472,086 shares outstanding.
BOS share price as of 28 Oct 2008 was 2.94 dhs, so 2008 estimated PE is about 2.94 / 0.32 = 9.2, based on Q3 earnings, which is close to the average market PE of about 10. 2008 PE estimate based on M9 earnings is 2.94 / 0.26 = 11.3, which is a slightly higher, and makes BOS shares look more expensive than some of the other banks with PEs as low as 5 or 6.
Stated EPS for 3Q 2007 is AED 0.722, which looks wrong by a factor of about 10 (original 3Q 2007 financial statements have AED 0.080), and conflict with a calculated value of AED 0.05 (restated to allow for BOS Capital Increase earlier this year). BOS auditors are Deloitte and Touche. There's no obvious explanation from them or BOS for the discrepancy. Presumably it's just a typo .
Bank of Sharjah Group’s Q3 net profit increases by 38% to reach AED341 million
Total group assets cross Dhs15 billion
Code:
Bank of Sharjah - Financial Highlights (in AED millions):
30-09-2008 30-09-2007 Variance
Total assets 15,175 8,830 72%
Total Equity 3,840 2,091 84%
Loans and advances 9,616 5,279 82%
Customer deposits 9,394 4,687 100%
Operating income 490 306 61%
Net profit 340 247 38%
Earnings per share 0.213 0.200 6.5%
Return on Equity (Annualized) 14.8%
Return on Assets (Annualized) 3.5%
Sharjah, UAE: Bank of Sharjah Group (BOS) net profit for the period increased 38%, despite the turmoil and the crisis in the global financial markets. The results reflected the sustained and sound growth in the group’s core banking activities, and the solid structure of its balance sheet.
During the period, the group’s balance sheet witnessed a substantial growth mainly as a result of the successful acquisition on September 30th, 2008, by its subsidiary Emirates Lebanon Bank S.A.L of the assets and liabilities of BNPI branch in Lebanon – a subsidiary of BNP Paribas Group.
The group had no exposure to the US sub-prime mortgage market, and was not affected by the global credit and liquidity crunch.
Total assets reached AED 15,175 million, an increase of 72% over the same period of last year’s figure of AED 8,830 and 41% increase over AED 10,789 million balance of December 31, 2007. The increase in total assets was mainly driven by the increase in the loans and advances portfolio, in addition to the acquisition.
Total equity reached AED 3,840 million increasing by 84% over the corresponding figure of AED 2,091 for last year. The increase stems mainly from the successful conversion of the convertible bonds which added AED 1,462 million to the bank’s equity. That improved the bank’s liquidity, solvency and leverage ratios.
As of September 30, 2008, the bank’s capital adequacy stands at 22.05%, way ahead the 10% ratio set by the Central Bank. On the other hand, the bank’s ratio of equity to total assets stands at 25.3%, improving from 21.3% as of December 31, 2007.
Loans and advances increased by 82% to reach AED 9,616 million compared with AED 5,297 million in September 2007. The acquisition has added AED 1,596 million to the group’s portfolio of loans and advances representing 16.5% of the total balance. As such, the growth from the December figure of AED 5,312 million becomes only 52% which is in line with the expansion of the UAE economy.
Customer deposits increased 100% over last year’s figure of AED4,687 million and reached AED 9,394 million. The acquisition has added AED 2,589 million representing 27.5% of the group customer deposits. The overall increase in deposits is 48% when compared with the December 2007 figure of AED 6,337 which depicts the healthy growth in the customers’ deposits over the year.
Net profit for the period was AED 341 million compared with AED 247 million for the same period of last year an increase of 38%. The 2008 third quarter profit was AED 145 million which is 55% more than the AED 94 million profit of same quarter of last year.
This overall increase in net profit translated into a 6.5% increase in the earnings per share for the period ending September 30th, 2008 which reached AED 0.213 compared with 0.2 for the same corresponding period of last year.
Net interest income for the period ending September 30, 2008, was AED 250 million, a 48% increase over last year’s figure. The increase was driven by the growth in the loans and advances portfolio by 52% during the year without taking into account the increases from the acquisition of BNPI.
It is important to note that, the growth in the loans and advances as a result of the acquisition had zero impact on the profit and loss for this period, since the acquisition took place only on September 30th 2008.
Net commissions, fees and other income reached AED 241 million, an increase of 76% over the corresponding last year’s figure of AED 137 million. The figure represented 49% of net operating income that has progressed to AED 490 million, registering an impressive growth of 61% over last year’s.
In view of the current market conditions, the bank considered it appropriate to constitute a general impairment provision which will be reassessed again at the end of the year with the unfolding of the current global financial situation.
The solid growth in the Bank’s commercial activity resulted in an outstanding 30% increase in the off balance sheet financing during the period which reached AED 7.3 billion against AED 5.6 billion as of 31 December, 2007.
During the quarter, Bank of Sharjah through its Lebanese subsidiary, Emirates Lebanon Bank S.A.L. received the final approval from Central Bank of Lebanon on the acquisition of the operations of the Lebanese branches of Banque Nationale de Paris Intercontinentale as of 30 September 2008.
As a result of this acquisition, Bank of Sharjah retains 81% of Emirates Lebanon Bank S.A.L., while BNPI France (a subsidiary of BNP Paribas) holds the remaining 19%. Moreover, a collaboration agreement between Emirates Lebanon Bank and BNP Paribas has been reached, at the level of private banking and asset management.
Finally, during the year, Fitch had reaffirmed its rating for Bank of Sharjah at A-, and Capital Intelligence has recently raised the Foreign Currency long-term rating of Bank of Sharjah to A-.
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
.
