MCB_CY19 Result Review, (AKD, Off the Analyst's Desk, Feb 04, 2020)
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MCB: CY19 Result Review (In-line) |
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· MCB Bank Limited (MCB), in line with our expectation, reported CY19 NPAT of PkR23.9bn (EPS: PkR20.1) vs. PkR20.4bn (EPS: PkR17.2) in the corresponding period last year. The bank positively surprised on payout (DPS stood at PkR5; c. DPS: PkR17) which was widely appreciated (MCB: +4.6% as of this note). · On a quarterly basis, 4QCY19 NPAT clocked in at PkR7.8bn (EPS: PkR6.5, +36.8%QoQ/15.1%YoY). · Gross Yield improved by 2.5ppt QoQ to 41.6% potentially at the back of repricing gains and deleveraging. · Non-Interest contribution to total income improved to 23.6% in 4QCY19 vs. 18.8% in previous quarter attributable to capital gains (PkR1,015mn in 4QCY19 vs. –ve PkR9.1mn in 3QCY19). · The bank, defying historical trend, contained its administrative costs (4Q costs are usually higher) as a result of which C/I ratio dipped to 41.5% in 4QCY19 vs. 48.7% in 3QCY19. · Provisions stood at PkR852mn in 4QCY19 where we attribute it to possibly higher credit costs. |
Muslim Commercial Bank, and its subsidiaries, are engaged in commercial banking and the floating, administration and management of modaraba companies, modaraba funds and modarabas.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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