MCB Bank sees nearly 18% drop in quarterly profit

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MG News | April 23, 2025 at 02:22 PM GMT+05:00

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April 23, 2025 (MLN): MCB Bank Limited (PSX: MCB) disclosed its financial results for the quarter ended March 31, 2025, reporting a 17.78% decline in profit attributable to equity shareholders, which stood at Rs14.65 billion [EPS: Rs12.36], compared to Rs17.82bn [EPS: Rs15.04] in the same period last year.

The bank has declared an interim cash dividend of Rs9 per share, equivalent to 90%.

An analysis of the profit and loss account reveals that total income dropped by 4.80% to Rs49.58bn, driven primarily by a 22.36% decrease in mark-up/interest earned, which stood at Rs77.99bn.

Meanwhile, mark-up/interest expenses declined significantly by 33.13% to Rs38.92bn, resulting in a 7.52% fall in net mark-up/interest income to Rs39.07bn.

On the non-markup side, the bank recorded a 9.10% increase in income, reaching Rs10.5bn.

Key contributors included fee and commission income (+0.27%), dividend income (+93.91%), foreign exchange income (+22.39%), and other income (+45.65%).

However, the bank posted a net loss on securities of Rs139.66 million.

Total non-markup expenses rose sharply by 21.42% to Rs20.85bn, with operating expenses up by 23.47%.

Workers Welfare Fund expenses declined by 10.49%, while other charges fell significantly by 50.76%.

MCB share of profit from associates grew 18.35%, contributing Rs492.95m to overall earnings.

Despite a credit loss allowance and write-offs spike of over 8,244%, amounting to Rs2.33bn, profit before taxation declined by 10.74% to Rs31.55bn, down from Rs35.35bn in the previous year.

Taxation also dropped 3.87%, totaling Rs16.82bn.

After accounting for non-controlling interest, which increased by 142.87%, profit attributable to equity shareholders stood at Rs14.65bn, marking a 17.78% year-on-year decline.

CONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFIT AND LOSS ACCOUNT (UN-AUDITED) (Rupees in '000)
Description Mar-25 Mar-24 %Change
Mark-up / return / interest earned 77,987,291 100,441,557 -22.36%
Mark-up / return / interest expensed 38,915,030 58,193,819 -33.13%
Net mark-up / interest income 39,072,261 42,447,738 -7.95%
NON MARK-UP / INTEREST INCOME     #DIV/0!
Fee and commission income 6,613,942 6,795,932 -2.68%
Dividend income 1,525,284 796,608 91.47%
Foreign exchange income 2,357,309 1,926,077 22.39%
Income from derivatives 809 397 103.78%
Gain on securities - net (139,655) 6,128  
Net gains / (loss) on derecognition of financial assets measured at amortised cost #VALUE!
Other income 146,885 100,845 45.65%
Total non-markup / interest income 10,504,375 9,627,987 9.10%
Total income 49,576,636 52,075,725 -4.80%
NON MARK-UP / INTEREST EXPENSES      
Operating expenses 20,143,355 16,314,880 23.47%
Workers Welfare Fund 631,069 705,030 -10.49%
Other charges 74,410 151,111 -50.76%
Total non-markup / interest expenses 20,848,834 17,171,021 21.42%
Share of profit of associates 492,951 416,515 18.35%
Profit before credit loss allowance 29,220,753 35,321,219 -17.27%
Credit loss allowance and write offs - net (2,332,565) (27,955) 8244.00%
PROFIT BEFORE TAXATION 31,553,318 35,349,174 -10.74%
Taxation 16,818,096 17,495,021 -3.87%
PROFIT AFTER TAXATION 14,735,222 17,854,153 -17.47%
Less: Profit attributable to non-controlling interest (83,703) (34,464) 142.87%
PROFIT ATTRIBUTABLE TO EQUITY SHAREHOLDERS OF THE BANK 14,651,519 17,819,689 -17.78%
Basic and diluted earnings per share 12.36 15.04 -17.82%

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