KASB Bank Stock/ Financial Analysis 2014

About KASB Bank:

KASB Bank Ltd was incorporated in pakistan in 1994 as a public limited company. The bank is engaged in commercial banking, consumer banking, corporate and investment banking and related services. KASB corporation is the holding company of the bank.

Website

www.kasbbank.com

Key Data:

During the period 2011-14 the bank has shown stagnancy. No expansion of branch network as well as growth in deposit base. The bank does not meet minimum capital of Rupees 10 billion set by state bank of Pakistan. The bank is looking for capital restructuring.

	2011	2012	2013	Mar-14	Jun-14	Sep-14
Capital ('000)	2,751,602	2,611,818	1,357,602	1,293,603	1,269,980	1,320,278
Branches	104	105	105	105	105	105
Employees	1,126	1,203	1,135
Deposits ('000)	50,079,849	61,873,268	63,072,958	62,266,969	64,067,728	61,936,529
deposit growth %	8.22	23.55	1.94	(1.28)	1.58	(1.80)

Income Profile

The banks Net Spread Income as percentage of Deposits was negative during 2011 and is very low afterwards. The bank do not covers its admin expense out of its core banking activities. The earnings per share EPS is also negative all the time.

	2011	2012	2013	Mar-14	Jun-14	Sep-14
Net Spread Income NSI	-535,694	2,220,911	2,131,307	449,575	498,061	510,390
NSI as % of Deposits T-1	(1.16)	4.43	3.44	0.71	0.80	0.80
NSI /Admin expenses	(0.23)	0.83	0.86	0.77	0.80	0.78
EPS /LPS	(2.36)	(0.54)	(0.81)	(0.06)	(0.01)	(0.03)

Leverage:

Over the period 2011-14, the bank has assumed risk beyond its capacity in its loan portfolio as evidenced by its advances to equity ratio. Almost half of the loan portfolio shows infection. The bank require equity capital to carry on its business.

	2011	2012	2013	Mar-14	Jun-14	Sep-14
Total Assets/equity	22.27	33.81	50.30	52.84	54.53	50.73
advances/equity	9.77	11.37	17.87	17.91	18.19	17.17
Non-Performing Loans/Advances T-1	39.85	51.57	38.97	47.34	47.56	46.90

Stock Valuation:

 

	2011	2012	2013	Mar-14	Jun-14	Sep-14
Book Value	1.41	1.34	0.70	0.66	0.65	0.68
Book value without revaluation reserve	1.20	1.02	0.57	0.51	0.51	0.49
Book value without RR and adjusted for NPL	(1.72)	(2.36)	(1.06)	(1.04)	(0.76)	(0.75)

Dividend distribution:

The bank has no history of dividend distribution.

Conclusion:

This bank is simply bankrupt.