April 24, 2024 (MLN): MCB Bank Limited (PSX: MCB) kicked off the year 2024 on a positive note as its profits of 1QCY24 clocked in at Rs17.85 billion [EPS: Rs15.04], as compared to the Rs13.97bn [EPS: Rs11.75] profit recorded in the same period last year (SPLY).
Along with the financial results, the board of directors of MCB has also announced a final cash dividend for the quarter ended March 31, 2024, at Rs9 per share i.e. 90%.
Going by the income statement, the bank witnessed an increase of 28.5% YoY in its net interest income (NII) to stand at Rs42.45bn in 1QCY24. The surge in NII is attributed to a massive jump in interest-earning (Rs100.64bn), up by 43.3% YoY.
During the period under review, the bank’s Non-Markup Income (NMI) rose by 48.5% YoY to Rs9.63bn owing to a significant rise in Fee and commission income to clock in at Rs6.80bn as compared to Rs4.64bn in 1QCY23.
The bank reported a substantial drop of 93% YoY in gain on securities to Rs6.13 million compared to Rs84m in SPLY.
On the expense side, the bank’s non-markup expenses witnessed an increase of 21.3% YoY and were recorded at Rs17.17bn in the review period.
The increase in the bank’s earnings was further buoyed by the share of profit of associates, as it stood at Rs416.5m, compared to Rs3.75m.
On the tax front, MCB paid Rs17.49bn, 64% YoY higher than in 1QCY24.
| Consolidated Profit and Loss Account for the Quarter ended March 31, 2024 (Rupees '000) | |||
|---|---|---|---|
| Mar-24 | Mar-23 | % Change | |
| Mark-up/return/interest earned | 100,641,557 | 70,233,790 | 43.30% |
| Mark-up/return/interest expensed | 58,193,819 | 37,191,367 | 56.50% |
| Net mark-up/interest income | 42,447,738 | 33,042,423 | 28.50% |
| Non mark-up/interest income | |||
| Fee and commission income | 6,795,932 | 4,645,625 | 46.30% |
| Dividend income | 798,608 | 654,182 | 22.10% |
| Foreign exchange income | 1,926,077 | 1,036,088 | 85.90% |
| Income/ (loss)from derivatives | 397 | 12,056 | -96.70% |
| Gain/ (loss) on securities | 6,128 | 84,343 | -92.70% |
| Other income | 100,845 | 51,901 | 94.30% |
| Total non mark-up /interest income | 9,627,987 | 6,484,195 | 48.50% |
| Total income | 52,075,725 | 39,526,618 | 31.70% |
| Non mark-up/interest expenses | |||
| Operating expenses | 16,314,880 | 13,558,076 | 20.30% |
| Workers felfare fund | 705,030 | 496,158 | 42.10% |
| Other charges | 151,111 | 98,167 | 53.90% |
| Total non mark-up/interest expenses | 17,171,021 | 14,152,401 | 21.30% |
| Share of profit of associates | 416,515 | 3,757 | – |
| Profit before provisions | 35,321,219 | 25,377,974 | 0.39% |
| Provisions/(reversals) and write offs-net | (27,955) | 739,955 | – |
| Profit before taxation | 35,349,174 | 24,638,019 | 0.43% |
| Taxation | 17,495,021 | 10,661,773 | 0.64% |
| Profit after taxation | 17,854,153 | 13,976,246 | 0.27% |
| Basic and diluted earnings per share | 15 | 12 | 0.28% |
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Posted on: 2024-04-24T13:59:11+05:00
