MEBL announced earnings (PAT) today for 1QCY25 at PKR 22bn (EPS: PKR 12.3), depicting a decline of 11% YoY | 11% QoQ (4QCY23 EPS: PKR 13.9).  The bank’s earnings contracted by a YoY dip in NII and higher OPEX. Along with the result, MEBL announced a cash dividend of PKR 7/share.

•        In the first quarter of CY25, the bank reported a Net Profit Earned of PKR 61.8bn, reflecting a 8% decline YoY, while declined by 15% on QoQ. The profit earned by the bank saw a 10% dip YoY and experienced a 8% decline QoQ. At the same time, profit expensed declined by 12% YoY, while increasing by 5% compared to the previous quarter.

•        In the outgoing quarter, the bank experienced a 33% increase in Non-Funded Income YoY, driven primarily by higher Fee income, which rose by 21.9% YoY, and FX income, which increased by 22% YoY. However, on a QoQ basis, the Non-Funded Income was impacted negatively due to lower Fee income, which fell by 4% QoQ, and a decrease in Gain on Securities by 99.7% QoQ.

•        The bank posted provisioning charge amounting to PKR 1.8bn in 1QCY25, compared to a charge of PKR 263mn in the same period last year and a charge of PKR 6.7bn in the previous quarter.

•        OPEX witnessed a decline of 7% YoY while increased by 8% QoQ in 1QCY25, clocking-in at PKR 20.2bn for the bank. With this, the Cost/Income ratio stood at 28.5% for 1QCY25, down from 29.5% in the same period last year.

•        The effective tax rate for the bank was set at 54.5% during 1QCY25, showing an increase from 52.2% in the same period last year.

Courtesy – AHL Research