MCB is scheduled to announce its CY20 financial result on 9th FEB-21, wherein experts expect the bank to post PAT of PKR 29,348mn in CY20E as compared to PKR 23,947mn in the preceding quarter, up by 22.55%YoY. However, analyst expects the bank to witness decline in EPS on quarterly basis by 47.35%QoQ, according a report of Spectrum Securities Limited.

The report says that the interest earned expected to clock in at PKR 144,695mn, down by 2.29% YoY due to downward revision in policy rate over the year.

The research house expects the bank’s earning to be supported by lower operating expenses in CY20, and a strong non-interest income will help bank to post higher earnings in CY20E.

Despite growth in EPS, we expect the bank to keep payout ratio lower than its historic levels.

It is expected the bank to announce PKR 8.5/share dividend in Q4CY20E. Making the payout ratio for the year at 55%.

The bank has maintained healthy provisions and has a high coverage ratio; nevertheless, experts maintain conservative approach and expect the provision for the year to PKR 6,900mn up by 1.58x.