
Dolat Capital: Federal Bank Posts Strong Q2 Performance
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Dolat Capital Report
The Federal Bank Ltd. reported better than expected net interest income and pre-provision operating profit growth of 23% and 40% YoY respectively aided by sharp sequential growth in higher yielding gold loans and improved fee lines.
Net interest margin improved 6 basis points QoQ to 3.13%. Against a restructuring guidance of 2.5-3% of loans, the bank provided approximately Rs 4 billion or 10% during the quarter.
Additionally, management expects quarterly slippages to rise by 30-50%, ex of any large corporate account, stress in which is not envisaged currently.
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