February 06, 2024 (MLN): MCB Bank Limited (PSX: MCB) has recorded its highest-ever profit of Rs65.271 billion [EPS: Rs54.94] for the year ended December 31, 2023, as compared to the Rs34.45bn [EPS: Rs34.45] 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 period ended December 31, 2023, at Rs9 per share i.e. 90%.
This is in addition to Interim Dividend(s) already paid at Rs21 per share i.e. 210 %.
Going by the income statement, the bank witnessed an increase of 72.37% YoY in its net interest income (NII) to stand at Rs165.42bn in 2023. The surge in NII is attributed to a massive jump in interest-earning (Rs364.45bn), up by 66.09% YoY.
During the period under review, the bank’s Non-Markup Income (NMI) rose by 36.68% YoY to Rs35.4bn owing to a significant rise in Fee and commission income to clock in at Rs22.46bn as compared to Rs15.57bn in 2022.
Additionally, MCB witnessed a reversal in its income through securities, as the bank reported a gain of Rs837.44 million in 2023, in contrast to a loss of Rs1.74bn in 2022.
On the expense side, the bank’s non-markup expenses witnessed an increase of 27.52% YoY and were recorded at Rs63.57bn in the review period.
The increase is attributed to the operating charges incurred by the bank, which reflected a growth of over Rs12bn in 2023.
Likewise, expenses towards the Worker’s welfare fund and other charges surged to Rs2.744bn and Rs701.75m during the review period.
However, the increase in the bank’s earnings was further buoyed by the share of profit of associates, as it stood at Rs1.35bn, up by 96.61% YoY.
Furthermore, the bank incurred a provision reversal of Rs1.075bn during the review period compared to the provisioning expense of Rs2.64bn in the corresponding period last year.
On the tax front, MCB paid Rs72.25bn, 76.69% YoY higher than the amount paid in 2022.
| Consolidated Profit and Loss Account for the year ended December 31, 2023 (Rupees '000) | |||
|---|---|---|---|
| Dec-23 | Dec-22 | % Change | |
| Mark-up/return/interest earned | 364,448,721 | 219,422,758 | 66.09% |
| Mark-up/return/interest expensed | 199,026,657 | 123,454,752 | 61.21% |
| Net mark-up/interest income | 165,422,064 | 95,968,006 | 72.37% |
| Non-mark-up/interest income | |||
| Fee and commission income | 22,460,483 | 15,573,910 | 44.22% |
| Dividend income | 2,510,757 | 2,121,696 | 18.34% |
| Foreign exchange income | 9,197,358 | 9,588,551 | -4.08% |
| Income from derivatives | 15,837 | 33,148 | -52.22% |
| Loss/Gain on securities | 837,442 | (1,714,850) | -148.83% |
| Other income | 375,874 | 295,837 | 27.05% |
| Total non-mark-up/interest income | 35,397,751 | 25,898,292 | 36.68% |
| Total income | 200,819,815 | 121,866,298 | 64.79% |
| Non mark-up/interest expenses | |||
| Operating expenses | 60,127,915 | 48,075,386 | 25.07% |
| Workers welfare fund | 2,744,424 | 1,509,781 | 81.78% |
| Other charges | 701,754 | 267,536 | 162.30% |
| Total non mark-up/interest expenses | 63,574,093 | 49,852,703 | 27.52% |
| Share of profit of associates | 1,348,508 | 685,888 | 96.61% |
| Profit before provisions | 138,594,230 | 72,699,483 | 90.64% |
| Provisions/(reversals) and write offs-net | 1,075,258 | (2,641,001) | -140.71% |
| Profit before taxation | 137,518,972 | 75,340,484 | 82.53% |
| Taxation | 72,247,962 | 40,889,320 | 76.69% |
| Profit after taxation | 65,271,010 | 34,451,164 | 89.46% |
| Basic and diluted earnings per share | 54.94 | 29.00 | – |
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Posted on: 2024-02-06T13:13:40+05:00
