KARACHI - NIB Bank and Bank Alfalah have announced their financial results for the first half of 2009 (1HCY09), whereas, National Bank of Pakistan is expected to its results for 1HCY09 on Saturday (today). According to the results, NIB has declared consolidated profit before tax of Rs1.5b, while Bank Alfalah posted a significant decline of 39pc in its net earnings. On the other hand, NBP is likely to post profit after tax (PAT) of Rs7.1b (EPS Rs6.60). For the first half of 2009, NIB Bank earned a consolidated profit before tax of Rs1.5b and a consolidated profit after tax of Rs 1.04b. On a standalone basis, profit before tax was Rs1b and profit after tax was Rs 580m. Mark up earned by NIB Bank in the first six months of 2009 at Rs 9.4b was Rs 2.2b; higher than for the first six months of 2008. This was a result of a growth in the loan book of the bank as well higher loan yields. The bank also achieved an appreciable reduction in its cost of funds for the current financial year, which helped contain the increase in mark up expense to Rs 1.9b. Fee income in the first half of 2009 also increased by 9pc over the first half of 2008. While recording a strong growth in its balance sheet, the bank succeeded in reducing administrative expenses by 9pc in the first half of 2009 compared to the first half of 2008. This was achieved despite high inflation and rising utilities costs, given the very strong focus placed by the Bank on improving operating efficiency. During the second quarter of 2009, the Bank commenced the rollout of its new Core Banking with 77 branches already converted and a plan to complete the migration to the new banking platform before the end of 2009. Similarly, Bank Al-Falah has announced its 1H2009 results. The bank posted a significant decline of 39pc in its net earnings at Rs1.1b (EPS Rs0.82) versus Rs1.8b (EPS Rs1.35) in the similar period of last year. Both net interest income (NII) and non-interest income remained lower at 1pc and 5pc respectively. Interestingly, non-interest income was higher than the expectations due to above anticipated income from dealing in foreign currency and capital gain income. Moreover, the banks Net Interest Income (NII), during 1H2009 stood at Rs5.3b (1pc lower on YoY basis). In 2Q2009, NII dropped by 5pc over the same quarter of last year at Rs2.5b; mainly due to squeezing margins. The decline in NII is also evident on sequential quarter basis and 2Q2009 interest based income is 6pc lower than 1Q2009. The banks non interest income also dropped by 5pc to Rs 2.7b. Decline is largely attributable to lower fees, commission and brokerage income; however, this is 15pc higher than our estimate of Rs 2.4b. In our opinion, the deviation in estimate is primarily due to higher income from dealing in foreign currencies and above than expected realized gain on sale of securities, said Kamran Rehmani at FCEL. Moreover, one of the leading blue-chip banks of Pakistan economy, National Bank of Pakistan Ltd (NBP) is scheduled to announce its results for 1HCY09 on Saturday (today) and the Board of Directors of the bank will be meeting today. NBP is expected to post a PAT of Rs7,105m (EPS Rs6.60), translating into a decline of 10pc on YoY basis. Despite significant increase in fund cost, we expect banks NII to grow by 6pc YoY on the back of 38pc YoY increase in interest income, said analyst Abdul Shakur at InvestCap Research. On QoQ basis, the bottomline is expected to decline by 31pc YoY to Rs2.89b (EPS Rs2.69) in 2QCY09. Provisions, which remain the concerning factor for NBP as being the public sector entity, are expected to increase by 12pc YoY with further deterioration in the asset quality. NPLs are expected to increase by 20pc in 1HCY09 (NPLs to loan ratio expected at 14.1pc). Moreover, provision for Dewan group would further suppress banks bottomline as estimated exposure of Rs5bn of Dewans group is expected to be provided going forward. Due to lower dividends and equity gains, the non interest income of the bank is expected to remain dry, to decline by 2pc YoY. Admin charges are expected to grow by 27pc YoY resulting in inflating cost to income ratio to 42pc compared to 30pc in 1QCY09. No cash of stock dividend with the result is expected according to the experts.