October 25, 2023 (MLN): MCB Bank Limited (PSX: MCB’s) profit for the 9MCY23 surged by 2.34x YoY to Rs48.34 billion [EPS: 40.70], compared to Rs20.67 billion [EPS: 17.4] recorded in the Same Period Last Year (SPLY), bank’s filing on PSX revealed today.
Along with the 9MCY23, the Board of Directors (BoD) of MCB has recommended an interim cash dividend for 3QCY23 at Rs8/- per share i.e. 80%.
This is in addition to interim Dividend(s) already paid at Rs13/- per share i.e. 130%.
Going by the income statement, the bank witnessed an increase of 77.2% YoY in its net interest income (NII) to stand at Rs119.17bn, compared to Rs67.24bn in SPLY. The surge in NII is due to a jump in interest-earning (Rs346.95bn), up by 70.1% YoY.
During the period under review, the bank’s total non-markup income also increased by 16.4% YoY to Rs24.55bn, owing to a massive jump in fee and commission income of 40.8% YoY to Rs15.89bn.
However, MCB’s foreign exchange income went down by 15.4% YoY to Rs6.41bn during the review period.
Going forward, the bank incurred a gain on the sale of securities of Rs201.12m in 9MCY23, compared to a loss of Rs165.15m reported in the SPLY.
The profit and loss statement shows a provision reversal of Rs1.8bn during the review period, compared to a provision expense of Rs1.3bn recorded in 9MCY22.
On the expense side, the total non-markup expenses increased by 26.2% to Rs45.93bn in 9MCY23 compared to Rs36.38bn in 9MCY22.
The increase was attributed to the jump of 26.2% YoY in the operating expenses from Rs35.14bn in 9MCY22 to Rs43.44bn in 9MCY23.
Additionally, the bank’s expenses related to the Workers' Welfare Fund and other charges also went up during the review period.
On the tax front, the bank paid Rs48.56bn, 46.7% YoY higher than the amount paid in 9MCY22.
| Consolidated Profit and Loss Account for the nine months ended September 30, 2023 (Rupees '000) | |||
|---|---|---|---|
| Sep-23 | Sep-22 | % Change | |
| Mark-up/return/interest earned | 260,832,479 | 153,350,018 | 70.1% |
| Mark-up/return/interest expensed | 141,664,553 | 86,110,868 | 64.5% |
| Net mark-up/interest income | 119,167,926 | 67,239,150 | 77.2% |
| Non-mark-up/interest income | |||
| Fee and commission income | 15,889,708 | 11,284,635 | 40.8% |
| Dividend income | 1,810,404 | 1,436,115 | 26.1% |
| Foreign exchange income | 6,412,388 | 8,331,220 | – |
| Income from derivatives | 14,764 | 19,889 | -25.8% |
| Loss/Gain on securities | 203,122 | (165,151) | – |
| Other income | 223,988 | 183,823 | 21.8% |
| Total non-mark-up/interest income | 24,554,374 | 21,090,531 | 16.4% |
| Total income | 143,722,300 | 88,329,681 | 62.7% |
| Non mark-up/interest expenses | |||
| Operating expenses | 43,435,082 | 35,138,819 | 23.6% |
| Workers welfare fund | 1,932,563 | 1,075,925 | 79.6% |
| Other charges | 557,365 | 165,418 | 236.9% |
| Total non mark-up/interest expenses | 45,925,010 | 36,380,162 | 26.2% |
| Share of profit of associates | 894,936 | 522,009 | 71.4% |
| Profit before provisions | 98,692,226 | 52,471,528 | 88.1% |
| Provisions/(reversals) and write offs-net | 1,796,507 | (1,298,217) | -238.4% |
| Profit before taxation | 96,895,719 | 53,769,745 | 80.2% |
| Taxation | 48,555,020 | 33,101,126 | 46.7% |
| Profit after taxation | 48,340,699 | 20,668,619 | 133.9% |
| Basic and diluted earnings per share | 40.70 | 17.40 | – |
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Posted on: 2023-10-25T13:09:51+05:00
