MCB: PAT inches up due to reversals

August 11, 2021 (MLN): MCB Bank Limited (MCB) has declared its financial results for 1HCY21 ended June 30, 2021 as per which, the bank has posted its consolidated profit after tax (PAT) of Rs14.96 billion, translating into an EPS of Rs12.56.

The results showed an increase of 11% YoY when compared to the net profits of Rs13.47bn recorded in the same period of last year.

Alongside financial results, the board of directors has announced an interim cash dividend for the quarter ended June 30, 2021 at Rs5 per share i.e., 50%. This is in addition to the interim cash dividend already paid at Rs4.50per share i.e., 45%.

The increase in profitability was primarily due to reversals of Rs2bn and non-funded income (NFI).

During the period under review, the bank’s interest expenses decreased by roughly 31% YoY, whereas, income came down by 22% YoY, thereby curtailing growth in the bank’s net interest income (NII) to around 12% YoY during 1HCY21 due to repricing of assets at a lower rate.

On the other hand, NFI of the bank jumped by 32% YoY to clock in at Rs11.10bn due to a 17% increase in fee and commission income, two-fold increase in dividend income coupled with capital gains of Rs534mn during 1HCY21 against the loss of Rs57mn of the corresponding period last year. However, foreign exchange income inched down by 7% YoY to Rs1.42bn.

Moreover, operating expenses went up by 5.6% YoY to stand at Rs19.7bn whereas the bank witnessed provisioning reversals of nearly Rs2bn that expanded its bottom-line.

 Consolidated Profit and Loss Account for the half-year ended June 30, 2021 (Rupees '000)

 

Jun-21

Jun-20

% Change

Mark-up/return/interest earned

 62,733,431

 80,408,589

-22.0%

Mark-up/return/interest expensed

 29,001,691

 42,155,774

-31.2%

Net mark-up/interest income

 33,731,740

 38,252,815

-11.8%

Non-mark-up/interest income

 

 

 

Fee and commission income

 6,611,051

 5,658,116

16.8%

Dividend income

 853,078

 415,562

105.3%

Foreign exchange income

 1,424,246

 1,533,230

-7.1%

Income/ (loss) from derivatives

 8,545

 (6,903)

Gain/ (loss) on securities

 534,539

 (57,664)

Other income

 669,132

 84,159

695.1%

Total non-mark-up /interest income

 10,100,591

 7,626,500

32.4%

Total income

 43,832,331

 45,879,315

-4.5%

Non-mark-up/interest expenses

 

 

 

Operating expenses

 19,731,252

 18,683,734

5.6%

Worker’s welfare fund

 510,192

 445,087

14.6%

Other charges

 376,395

 240,180

56.7%

Total non-mark-up/interest expenses

 20,617,839

 19,369,001

6.4%

Share of profit of associates

 431,851

 412,806

4.6%

Profit before provisions

 23,646,343

 26,923,120

-12.2%

Provisions/(reversals) and write offs-net

 (1,999,908)

 4,076,022

Profit before taxation

 25,646,251

 22,847,098

12.3%

Taxation

 10,682,617

 9,373,265

14.0%

Profit after taxation

 14,963,634

 13,473,833

11.1%

Basic and diluted earnings per share

 12.56

 11.33

10.9%

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Posted on: 2021-08-11T12:18:00+05:00

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