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)




% Change

Mark-up/return/interest earned




Mark-up/return/interest expensed




Net mark-up/interest income




Non-mark-up/interest income




Fee and commission income




Dividend income




Foreign exchange income




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Gain/ (loss) on securities



Other income




Total non-mark-up /interest income




Total income




Non-mark-up/interest expenses




Operating expenses




Worker’s welfare fund




Other charges




Total non-mark-up/interest expenses




Share of profit of associates




Profit before provisions




Provisions/(reversals) and write offs-net



Profit before taxation








Profit after taxation




Basic and diluted earnings per share




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