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% |
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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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