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MCB Bank's result today

07 August, 2012

LAHORE: MCB Bank, which is scheduled to announce its 2Q2012 result on Tuesday (today), is estimated to record PAT of Rs 5.4b (EPS Rs5.86) a decline of 5% QoQ.

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LAHORE: MCB Bank, which is scheduled to announce its 2Q2012 result on Tuesday (today), is estimated to record  PAT of Rs 5.4b (EPS Rs5.86) – a decline of 5% QoQ.

The QoQ decline in earnings is likely to be driven by falling Non Interest Income. However, cumulative earnings in 1H2012 are expected to grow slightly by 1%YoY to Rs11.0b (EPS Rs11.99) despite an expectation of a 4%YoY decline in NII.

Lower provisions and healthy Non Interest Income are likely to be the main reasons for growth in the bottom line. Along with the result, it is anticipated of MCB to announce a second interim cash dividend of Rs3/share.

Taking cumulative dividend to Rs6/share.

NII is estimated to remain flat QoQ in 2Q at Rs10.7b, as the growth in earnings assets is likely to be offset by lower spreads (already down on average by 13bps in 2Q2012). Furthermore, MCB's NII will bear the brunt due to increase in the minimum deposit rates (to 6%) on saving deposits, as the banks savings to deposit ratio is high at 48%. Non interest income, on the other hand, is likely to decline by 3%QoQ mainly on account of lower dividend income expected in 2Q.

In addition, higher provisioning expense (Rs178mn) in 2Q is likely to keep earnings low by 5%QoQ to Rs5.4bn (EPS Rs5.86).

End.


 
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