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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Posted on: 2025-04-23T14:22:40+05:00
