February 10, 2021 (MLN): MCB has unveiled its CY20 financial results wherein the bank posted net profits of Rs 29.56 billion with earnings per share (EPS) of Rs 24.82, as against the net profits of Rs 23.95 billion (EPS: Rs 20.14) in CY19, showing an increase of 23% YoY.
In conjunction with the results, the bank announced a cash dividend of Rs 15 per share, i.e. 150%, taking cumulative dividend to Rs 20 per share.
The strong profitability of the bank was largely attributed to rise in net interest income (NII) and non-interest income.
The net interest income of the bank during the year registered an increase of 19% YoY due to 17% YoY decline in interest expenses and higher asset base and yields of PIBs further supported the bank’s NII.
The not interest income of the bank recorded a modest jump of 10% YoY as a result of a 4x increase in capital gains.
On the expense side, the provisioning expenses of the bank remained on the higher side compared to CY19, as it rose by 174% YoY owing to covid-19 related provisioning during the year, however, operating expenses of the bank remained flat during the year.
|
Consolidated Profit and Loss Account for the Year ended December 31, 2020 (Rupees '000) |
|||
|---|---|---|---|
|
|
Dec-20 |
Dec-19 |
% Change |
|
Mark-up/return/interest earned |
145,772,451 |
148,088,700 |
-1.6% |
|
Mark-up/return/interest expensed |
69,929,012 |
84,370,609 |
-17.1% |
|
Net mark-up/interest income |
75,843,439 |
63,718,091 |
19.0% |
|
|
|
|
|
|
Non-mark-up/interest income |
|
|
|
|
Fee and commission income |
11,971,491 |
12,230,871 |
-2.1% |
|
Dividend income |
969,322 |
1,240,771 |
-21.9% |
|
Foreign exchange income |
2,735,228 |
2,957,999 |
-7.5% |
|
Income from derivatives |
4,087 |
14,616 |
-72.0% |
|
Loss/Gain on securities |
3,396,296 |
828,873 |
309.7% |
|
Other income |
192,103 |
244,551 |
-21.4% |
|
Total non-mark-up /interest income |
19,268,527 |
17,517,681 |
10.0% |
|
Total income |
95,111,966 |
81,235,772 |
17.1% |
|
Non mark-up/interest expenses |
|
|
|
|
Operating expenses |
37,763,917 |
37,685,431 |
0.2% |
|
Workers welfare fund |
974,808 |
802,046 |
21.5% |
|
Other charges |
297,987 |
260,743 |
14.3% |
|
Total non-mark-up/interest expenses |
39,036,712 |
38,748,220 |
0.7% |
|
Share of profit of associates |
573,078 |
339,633 |
68.7% |
|
Profit before provisions |
56,648,332 |
42,827,185 |
32.3% |
|
Provisions/(reversals) and write offs-net |
7,330,044 |
2,673,592 |
174.2% |
|
Profit before taxation |
49,318,288 |
40,153,593 |
22.8% |
|
Taxation |
19,756,019 |
16,206,382 |
21.9% |
|
Profit after taxation |
29,562,269 |
23,947,211 |
23.4% |
|
Basic and diluted earnings per share |
24.82 |
20.14 |
23.2% |
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