MCB Bank stays buoyant as profits surge by 18% in 9MCY19

October 17, 2019 (MLN): MCB Bank has reported net earnings of Rs. 16.1 billion (RS. 16.63) for the nine months ended on September 30, 2019, i.e. around 18.6% higher than the earnings of same period last year.

The improvement in profits is a result of growth in NII, which in turn is an obvious outcome of monetary tightening implemented by State Bank in July, wherein interest rates surged by 100bps. The NII also rode high on the back of volumetric growth in average earning assets.

On the other hand, non-interest income slumped by 4% owing to decline in income from hedging instruments as well as non-core income by 93% and 72% respectively.

The Board of Directors of the Bank also announced an Interim Cash Dividend for the quarter ended September 30, 2019 at Rs. 4 per share i.e. 40%. This is in addition to dividends already paid at Rs. 8 per share i.e. 80%.

Earlier, MCB had announced that it shall dispose of its wholly owned subsidiary, MCB Financial Services Limited to ISE Tower REIT Management Company Limited and its nominee, namely Infortech (Private) Limited, as a co purchaser.

The aforesaid transaction will take place through ‘Share Purchase Agreement’, for a total consideration of Rs. 89,459,258.

Profit and Loss Account for the Nine Months ended September 30, 2019 (Rupees '000)

 

2019

2018

% Change

Mark-up/return/interest earned

105,533,314

61,541,250

71.5%

Mark-up/return/interest expensed

59,508,698

26,392,134

125.5%

Net mark-up / interest income

46,024,616

35,149,116

30.9%

    

Non mark-up / interest income

   

Fee, commission and brokerage income

9,048,543

8,620,082

5.0%

Dividend income

828,495

724,689

14.3%

Foreign exchange income

2,214,113

1,836,386

20.6%

Income from derivatives

3,045

43,784

-93.0%

Gain on securities

(186,879)

941,237

 

Other income

115,393

415,989

-72.3%

Total non-mark-up /interest income

12,022,710

12,582,167

-4.4%

Total income

58,047,326

47,731,283

21.6%

 

 

 

 

Non mark-up / interest expenses

   

Operating expenses

28,385,235

27,709,325

2.4%

Workers welfare fund

551,441

466,305

18.3%

Other charges

171,882

107,027

60.6%

Total non-mark-up / interest expenses

29,108,558

28,282,657

2.9%

Share of profit of associates

374,289

477,014

-21.5%

Provisions / (reversal) and write offs – net

1,823,093

(2,524,688)

-172.2%

Profit before taxation

27,489,964

22,450,328

22.4%

Taxation

11,327,158

8,826,823

28.3%

Profit after taxation

16,162,806

13,623,505

18.6%

Basic and diluted earnings per share

13.63

11.46

18.9%

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Posted on: 2019-10-17T12:54:00+05:00

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