August 20, 2020 (MLN): MCB Bank Limited has disclosed its financial performance for the half year ended on June 30th 2020, as per which the bank’s net profits jumped by 29.3% YoY to Rs 13.47 billion compared to Rs 10.42 billion reaped in the corresponding period last year.
This reflected in Bank’s earnings per share which also grew by the same percent from Rs 8.79 per share to Rs 11.33 per share.
The rise in profits of the Bank is mainly attributable to surge in net interest income by 29.3% YoY to Rs 38.25 billion.
According to the report by Darson Securities, the increase in net interest income was due to lagged impact of asset repricing.
Following 6.8% YoY decline in fee and commission income and 14.2% YoY decline in FX income, the Banks non-interest income went down by 9% YoY.
On provision side, the MCB posted 4.49x (349%) increase in its provisions from Rs 907.49 million to Rs 4 billion, while its operating expenses during the period declined negligibly by 0.7% YoY to Rs 18.68 billion.
Furthermore, in line with the SBP directives to suspend the dividend payment, the bank did not announce any interim cash dividend.
|
Profit and Loss Account for the Half Year Ended June 30,2018 (Rupees '000) |
|||
|---|---|---|---|
|
|
Jun-20 |
Jun-19 |
% Change |
|
Mark-up/return/interest earned |
80,408,589 |
63,418,278 |
26.8% |
|
Mark-up/return/interest expensed |
42,155,774 |
33,838,728 |
24.6% |
|
Net mark-up/interest income |
38,252,815 |
29,579,550 |
29.3% |
|
|
|
|
|
|
Non mark-up/interest income |
|
|
|
|
Fee and commission income |
5,658,116 |
6,069,062 |
-6.8% |
|
Dividend income |
415,562 |
654,605 |
-36.5% |
|
Foreign exchange income |
1,533,230 |
1,786,380 |
-14.2% |
|
Income from derivatives |
(6,903) |
(3,936) |
75.4% |
|
Loss/Gain on securities |
(57,664) |
(177,682) |
-67.5% |
|
Other income |
84,159 |
57,003 |
47.6% |
|
Total non-mark-up /interest income |
7,626,500 |
8,385,432 |
-9.1% |
|
Total income |
45,879,315 |
37,964,982 |
20.8% |
|
Non mark-up/interest expenses |
|
|
|
|
Operating expenses |
18,683,734 |
18,809,457 |
-0.7% |
|
Workers welfare fund |
445,087 |
365,700 |
21.7% |
|
Other charges |
240,180 |
106,880 |
124.7% |
|
Total non-mark-up/interest expenses |
19,369,001 |
19,282,037 |
0.5% |
|
Share of profit of associates |
412,806 |
199,907 |
106.5% |
|
Profit before provisions |
26,923,120 |
18,882,852 |
42.6% |
|
Provisions/(reversals) and write offs-net |
4,076,022 |
907,499 |
349.1% |
|
Profit before taxation |
22,847,098 |
17,975,353 |
27.1% |
|
Taxation |
9,373,265 |
7,553,728 |
24.1% |
|
Profit after taxation |
13,473,833 |
10,421,625 |
29.3% |
|
Basic and diluted earnings per share |
11.33 |
8.79 |
28.9% |
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