Thursday, November 14, 2019

MCB announces earning of Rs 20.30 billion, Rs 17.17 EPS

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Zubair Yaqoob
Zubair Yaqoob
The author has diversified experience in investigative journalism. He is Chief content editor at wnobserver.com He can be reached at: [email protected]
MCB announced earnings on Wednesday for CY18 above expectations, at PKR 20.3bn (EPS: PKR 17.17/share), depicting a YoY decline of 7%. Higher OPEX (+18% YoY) and pension liability of PKR 1.9bn led to the downturn. However strong growth in NII and impressive FX income provided respite.

The bank also announced a dividend of PKR 4.00/share for 4QCY18, taking total payout to PKR 16.00/share for CY18.

Net Interest Income of the bank settled at PKR 48bn, depicting a healthy 10% YoY improvement with mark-up income increasing 15% YoY while interest expense jumped by 21% YoY.

On a sequential basis the bank’s NII recorded an 8% QoQ.

NFI of the bank recorded an impressive 58% QoQ jump led by a 6.2x jump in FX income as the bank benefited majorly from the volatility in the currency markets.

On a yearly basis, fee income of the bank recorded a healthy jump of 11% YoY.

The bank booked net reversals worth PKR 822mn during CY18 which provided further respite to earnings.

That said the bank booked a net provisioning expense of PKR 792mn during 4Q, which is possibly an impairment charge on the equity book.

Effective tax rate was 34% during CY18 compared to 28% SPLY (hefty tax reversal was booked in 2QCY17).

 

Zubair Yaqoob
Zubair Yaqoob
The author has diversified experience in investigative journalism. He is Chief content editor at wnobserver.com He can be reached at: [email protected]

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