BOP reported earnings of PKR 8.7 billion (EPS: PKR 3.26) for 9MCY21, representing a 50 percent YoY increase while falling 16 percent QoQ. (3QCY21 EPS: PKR 1.18). Higher net interest revenue and provisioning reversals boosted earnings sequentially.
Highlights of the Result
The bank’s net interest income came in at PKR 22 billion, up 29 percent year on year. The net spread improved by 15% QoQ as compared to the previous quarter. During 9MCY21, the increase in topline may be ascribed to volumetric growth as well as a decrease in interest expenditure.
· NFI of the bank, however, was down on a yearly by 48% during 9MCY21, mainly due to a massive decline in capital gain to PKR 1.6bn from PKR 8.3bn SPLY while offsetting a 39% YoY jump in fee income. On a sequential basis too, the NFI decreased by 11%, mainly on the back of lower capital gains.
· The bank’s provisioning expenses are significantly down during the year declining 98% YoY to settle at PKR 139mn during 9MCY21.
· OPEX for the bank is up 21% YoY in 9MCY21 / 7% QoQ. Cost/Income ratio clocked in at 56% during 9MCY21 against 45% SPLY.