BOP announced earnings today at PKR 8.7bn (EPS:PKR 3.26) for 9MCY21, depicting an impressive YoY uptick of 50% while down 16% QoQ (3QCY21 EPS: PKR 1.18). Earnings posted a sequential uptick led by higher net interest income and provisioning reversals.

Result Highlights

· Net Interest Income of the bank settled at PKR 22bn which was up 29% YoY. Sequentially the net spread improved by 15% QoQ. The growth in topline could be attributed to volumetric growth along with a decline in interest expense during 9MCY21.

· NFI of the bank, however, was down on a yearly by 48% during 9MCY21, mainly due to a massive decline in capital gain to PKR 1.6bn from PKR 8.3bn SPLY while offsetting a 39% YoY jump in fee income. On a sequential basis too, the NFI decreased by 11%, mainly on the back of lower capital gains.

· The bank’s provisioning expenses are significantly down during the year declining 98% YoY to settle at PKR 139mn during 9MCY21.

· OPEX for the bank is up 21% YoY in 9MCY21 / 7% QoQ. Cost/Income ratio clocked in at 56% during 9MCY21 against 45% SPLY.

Courtesy -AHL Research