MCB Bank 2Q earning per share declines by 9pc
MCB Bank 2QCY15 earning per share has clocked in at PKR5.06, down 9% against PKR5.58 during the corresponding period last year, a report said. MCB also announced a cash payout of PKR4.0/sh, taking 1HCY15 payout to PKR8.0/sh, up 23% YoY, it was said.
However, the bank posted 1HCY15 PAT at PKR13.5bn, translating into EPS of PKR12.17, up 15% against the same period last year, it was reported.
The report said MCB posted robust increase of 55% YoY in its non-interest income which was largely driven by a sharp spike in non-funded income (NFI) of the bank which alone contributed 54% to the non-interest income posting growth of 32% to PKR2.3bn against PKR1.0 bn during the corresponding period last year. This was primarily a result of increased remittances during the 2QCY15 together with growth in business from Bancassurance, the report added saying other components of the noninterest income, on the other hand, grew by 93% on a cumulative basis.
Dividend income posted growth of 50% on a YoY basis indicating the strength of the bank's equity portfolio. Other income of the bank posted stellar growth of 6.94 against the corresponding period last year largely due to compensation on delayed refunds amounting to
PKR699mn which is non-recurring in nature. The report said total revenues therefore clocked in at PKR17bn during 2QCY15, up 21% YoY.
The report said that MCB continued to post improvement in its asset quality as non-performing loans (NPLs) stock of the bank fell by 1% during 1HCY15 and key asset quality ratios of the bank also posted improvement. Infection ratio clocked in at 11.2% during 2QCY15 against 12.5% during the corresponding period last year while NPL coverage ratio clocked in at 89% largely flat on YoY basis, the report further said. The bank also posted a NPL reversal charge of PKR40mn during the quarter. Meanwhile MCB held its conference call to discuss the 1HCY15 results yesterday. The meeting discussed five points. The bank disclosed its tilt towards increasing its Tbills portfolio rather than PIBs during the current year. A large proportion of these TBills have a maturity of 6 months.
The meeting also discussed PIB portfolio of the bank which has a maturity of 2.5 years to 5 years. The bank is optimistic in terms of increasing credit off-take to personal or mortgage financing. On the other hand, management suggests that low discount rates have failed to stir project financing up.
The bank is focusing on fertilizer and chemical sector, for its corporate book. It was also discussed that management of the bank is targeting 9% to 10% growth in advances and weighted average yield on PIBs and TBills at the moment is 11.67% and 8.54% respectively.