MCB Bank (MCB): 3Q2020 EPS at Rs8.4, up 74% YoY (higher than industry expectations)
- MCB Bank Limited (MCB) posted 3Q2020 consolidated earnings of Rs8.4/share, up 74% YoY and 47% QoQ.
- The result came in above industry and our expectations primarily due to higher Net Interest Income and Capital Gains.
- Net Interest Income (NII) contracted by 2% QoQ as Asset re-pricing repricing resulted in 12% QoQ decline in Interest Earned while Interest Expense reduced by 24% QoQ.
- To recall, the bank had recorded a Capital Loss of Rs51mn in 2Q2020. This was against the trend and a substantial gain was expected in 3Q2020, however Capital Gains to the tune of Rs2.9bn for 3Q2020 was higher than expectations.
- Provisions reached Rs5.1bn for 9M2020 with Rs1.1bn being recorded in 3Q2020 depicting a 66% QoQ decline. Majority of provisioning is General as a precaution in light of the COVID-19 pandemic.
- Fee income for the bank, in line with industry, showed strong recovery with a 24% QoQ jump as the lockdown was lifted and normal branch operations resumed.
Operating costs saw an increase of 3% QoQ. The rise in total income which came at the behest of higher non funded income kept the Cost to Income at an impressive 36% from 39% in the previous quarter.
Muslim Commercial Bank, and its subsidiaries, are engaged in commercial banking and the floating, administration and management of modaraba companies, modaraba funds and modarabas.
Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.
Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.
Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.
JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).
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