MCB bank reports a 2.77% decline in profit

MG News | February 06, 2025 at 02:16 PM GMT+05:00
February 06, 2025 (MLN): MCB Bank Limited (PSX: MCB) disclosed its financial results for the year ended December 31, 2024, reporting a 2.77% decline in profit after taxation, which stood at Rs63.47 billion [EPS: Rs53.35] compared to Rs65.27bn [EPS: Rs54.94] in the previous year.
The company declared a final cash dividend of Rs9.00 per share (90%) for the year, in addition to the interim dividends already distributed, totaling Rs27.00 per share (270%).
An overview of the profit and loss statement reveals that MCB managed to maintain profitability despite a 1.53% increase in net interest income, which reached Rs167.95bn, driven by a 13.47% rise in mark-up/interest earned.
However, a 23.40% surge in interest expenses significantly impacted overall earnings.
The bank's non-markup income showed a 16.51% increase, amounting to Rs41.24 billion, with key contributors being fee and commission income (+10.35%), dividend income (+16.69%), foreign exchange income (+4.53%), and a notable gain on securities (+313.95%).
However, income from derivatives dropped sharply by 87.49%.
On the expense side, non-markup expenses rose 18.87% to Rs75.57bn, primarily due to a 20.62% increase in operating expenses.
Other charges and Workers Welfare Fund expenses showed a mixed trend, with the latter declining 5.30%.
The bank also recorded a 353.68% increase in credit loss allowance and write-offs, reaching Rs4.88bn, impacting overall profitability.
Consequently, profit before taxation fell by 4.61% to Rs131.18bn, while taxation expenses declined by 6.28% to Rs67.71bn.
Despite the challenges, the bank's share of profit from associates surged 81.03%, contributing Rs2.44bn to the overall earnings.
The bank's non-controlling interest also grew 44.62%, reaching Rs240.62mn.
Consolidated Profit and Loss Account for the Year Ended December 31,2024 | |||
Dec-24 | Dec-23 | %change | |
Mark-up / Interest Income | |||
Mark-up / return / interest earned | 413,551,319 | 364,448,721 | 13.47% |
Mark-up / return / interest expensed | 245,603,966 | 199,026,667 | 23.40% |
Net mark-up / interest income | 167,947,353 | 165,422,054 | 1.53% |
Non Mark-up / Interest Income | |||
Fee and commission income | 24,784,627 | 22,460,483 | 10.35% |
Dividend income | 2,929,796 | 2,510,757 | 16.69% |
Foreign exchange income | 9,613,683 | 9,197,358 | 4.53% |
Income from derivatives | 1,982 | 15,837 | -87.49% |
Gain on securities - net | 3,466,555 | 837,442 | 313.95% |
Net gains/(losses) on derecognition of financial assets | - | - | |
Other income | 443,544 | 375,874 | 18.00% |
Total non-markup / interest income | 41,240,187 | 35,397,751 | 16.51% |
Total income | 209,187,540 | 200,819,805 | 4.17% |
Non Mark-up / Interest Expenses | |||
Operating expenses | 72,527,182 | 60,127,915 | 20.62% |
Workers Welfare Fund | 2,599,084 | 2,744,424 | -5.30% |
Other charges | 447,184 | 701,754 | -36.28% |
Total non-markup / interest expenses | 75,573,450 | 63,574,093 | 18.87% |
Share of profit of associates | 2,441,139 | 1,348,508 | 81.03% |
Profit before credit loss allowance | 136,065,229 | 138,594,220 | -1.82% |
Credit loss allowance and write-offs - net | 4,878,210 | 1,075,258 | 353.68% |
Profit before taxation | 131,177,019 | 137,518,962 | -4.61% |
Taxation | 67,711,345 | 72,247,962 | -6.28% |
Profit after taxation | 63,465,674 | 65,271,000 | -2.77% |
Attributable to: | |||
Equity shareholders of the Bank | 63,225,058 | 65,104,619 | -2.89% |
Non-controlling interest | 240,616 | 166,381 | 44.62% |
Total | 63,465,674 | 65,271,000 | -2.77% |
Basic and diluted earnings per share (EPS) (Rupees) | 53.35 | 54.94 | -2.89% |
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