Wednesday, August 17, 2022
HomeEquityMCB reports a 45% growth in earnings during 9MCY20 owing to higher...

MCB reports a 45% growth in earnings during 9MCY20 owing to higher NII

October 27, 2020 (MLN): MCB Bank Limited has reported a 45% growth in its earnings for the nine months ended September 30, 2020, from Rs. 16.1 billion (EPS: 13.63) to Rs. 23.5 billion (EPS: 19.75).

The Bank did not announce any dividend for the third quarter. However, the first interim cash dividend has already been paid at Rs. 5 per share i.e. 50% for the quarter ended March 31, 2020.

The improvement in earnings resulted from a 28% increase in net interest income, as well as a 21% increase in non-interest income. The growth in the latter transpired on the back of the presence of Gains on securities, which amounted to Rs. 2.8 billion.

On the other hand, the total expenses changed by only 1%, despite there being an increase in workers’ welfare fund and other charges by 39% and 51%, respectively.

While the above points contributed positively to the Bank’s profits, the increase in provisioning cost by 1.85x came as a huge setback. Moreover, the income tax paid during the period surged by 41%, thereby further restricting the increase in earnings.

Consolidated Financial Results for nine months ended September 30, 2020 (Rupees'000)

 

Sep-20

Sep-19

% Change

Mark-up / return / interest earned

114,516,948

105,533,314

9%

Mark-up / return / interest expensed

(55,717,040)

(59,508,698)

-6%

Net mark-up / interest income

58,799,908

46,024,616

28%

NON-MARK-UP / INTEREST INCOME

   

Fee and commission income

8,791,768

9,048,543

-3%

Dividend income

629,210

828,495

-24%

Foreign exchange income

2,100,027

2,214,113

-5%

Income / (loss) from derivatives

(3,604)

3,045

 

Gain / (loss) on securities – net

2,877,447

(186,879)

 

Other income

168,490

115,393

46%

Total non-markup / interest income

14,563,338

12,022,710

21%

Total income

73,363,246

58,047,326

26%

NON-MARK-UP / INTEREST EXPENSES

   

Operating expenses

(28,232,321)

(28,385,235)

-1%

Workers welfare fund

(767,073)

(551,441)

39%

Other charges

(259,326)

(171,882)

51%

Total non-markup / interest expenses

(29,258,720)

(29,108,558)

1%

Share of profit of associates

518,852

374,289

39%

Profit before provisions

44,623,378

29,313,057

52%

Provisions and write offs – net

(5,189,574)

(1,823,093)

185%

Extraordinary / unusual items

   

PROFIT BEFORE TAXATION

39,433,804

27,489,964

43%

Taxation

(15,921,924)

(11,327,158)

41%

PROFIT AFTER TAXATION

23,511,880

16,162,806

45%

Earnings per share

19.75

13.63

45%

Copyright Mettis Link News

Posted on: 2020-10-27T17:54:00+05:00

37691

RELATED ARTICLES
- Advertisment -

Most Popular