MCB announced earnings (PAT) today for 9MCY22 at PKR 20.6bn (EPS: PKR 17.4), depicting a decrease of 10% YoY | rise 304% QoQ (3QCY22 EPS: PKR 7.8). The jump in profitability during 3Q on YoY basis is due to improved earnings. The bank announced a DPS of PKR 5.00.

Result Highlights

· Net Interest Income of the bank settled at PKR 25bn during 3QCY22, marking an increase of 44% YoY and 9% QoQ. With this, the total NII for 9MCY22 clocked-in at PKR 67.2bn, registering a 32% YoY jump. Interest earned saw a jump of 79% YoY depicting an impact of asset repricing in the out-going quarter.

· During 3QCY22, NFI too remained up 53% YoY | 9% QoQ taking 9MCY22’s total to PKR 21bn. This increase in NFI during 9MCY22 was mainly due to higher FX and Fee income of PKR 8.3bn (+250% YoY) and PKR 11bn (+12% YoY), respectively. The higher FX income can be attributable to PKR volatility while increase in Fee income was on the back of higher trade activities. However, bank recorded a loss on securities in 9MCY22 of PKR 165mn against a gain of PKR 741mn recorded SPLY.

· During 3QCY22, reversals for the bank stood at PKR 377mn (-75% YoY), taking total reversals for 9MCY22 to PKR 1.3bn (-63% YoY).

· The bank’s OPEX increased by 23% YoY in 3QCY22 clocking-in at PKR 13.1bn. During 9MCY22, total OPEX reached PKR 36.3bn, up 16% YoY. With this, Cost/Income stood at 39.8% in 3QCY22 against 47% same period last year.

· Effective tax rate was set at 54% during 3QCY22 compared to 41% SPLY.

Courtesy- AHL Research