In today’s briefing:
- Punjab National Bank – Soaring Recoveries, From High NPLs, Pushes Profit Up 5.4x
- Henderson International Income Trust – Playing recent events well
Punjab National Bank – Soaring Recoveries, From High NPLs, Pushes Profit Up 5.4x
- Bank analysts sometimes like a story with high NPLs; recoveries can be powerful to profit
- For the past 7 quarters, NPLs are in decline at PNB, but most recent quarter is strongest
- There remains a large pool of NPLs at 8.7% of loans, for possible ongoing recoveries
Henderson International Income Trust – Playing recent events well
Henderson International Income Trust (HINT) offers a diversified investment solution for those seeking capital growth and income opportunities outside the UK, where dividend income is relatively concentrated. Recent relative performance has improved, as underweights to the US and to IT and other growth stocks, which have previously hurt performance, are now boosting relative returns and should leave HINT well placed to cope with the persistently uncertain global environment. Overweights to European financials, energy and luxury goods producers have also been working well. HINT has a long-term objective to grow its dividend. Consistent with this, dividends have grown steadily since inception, and HINT’s dividend yield of 4.3% is competitive, ranking equal highest among its AIC peers.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
