April 20, 2021 (MLN): MCB Bank has announced its financial results for the first quarter ended on March 31, 2021, as per which it has reported net profits of Rs 7.05 billion (EPS: Rs 5.92), i.e., around 6% higher than the same period of last year.
The bank announced an interim cash dividend of Rs 4.50 per share i.e., 45% for the quarter.
As per the financial statement issued by the bank to PSX, the bank’s net interest income dropped by 5.7% YoY to Rs 16.30 billion as the full impact of monetary easing reflected on asset yields, mentioned Arif Habib Research.
During the period under review, despite the decline in Foreign Exchange income, Non-Funded Income (NFI) showed significant growth of 19.4% YoY on an account of a 74% YoY increase in dividend income, , capital gains of Rs 367 billion in 1QCY21 against losses of Rs 6.25 million incurred in the same period last year.
The bank booked a net reversal of Rs 213 million this quarter which attributed to an improved outlook on the asset quality following the rebound in economic activity across the country in view of AHL research. The management expects net reversals of Rs 1.5-2 billion for the entire year.
Meanwhile, the bank paid taxes worth Rs 4.6 billion, up by 2.6% YoY in 1QCY21.
Consolidated Profit and Loss Account for the Quarter ended March 31, 2021 (Rupees '000) | |||
|---|---|---|---|
| Mar-21 | Mar-20 | % Change |
Mark-up/return/interest earned | 30,601,487 | 41,656,568 | -26.5% |
Mark-up/return/interest expensed | 14,303,321 | 24,370,786 | -41.3% |
Net mark-up/interest income | 16,298,166 | 17,285,782 | -5.7% |
Non-mark-up/interest income |
|
|
|
Fee and commission income | 3,636,522 | 3,125,528 | 16.3% |
Dividend income | 347,940 | 200,326 | 73.7% |
Foreign exchange income | 605,814 | 834,559 | -27.4% |
Income/ (loss)from derivatives | 9,194 | (10,405) | – |
Gain/ (loss) on securities | 366,710 | (6,254) | — |
Other income | 8,361 | 23,646 | -64.6% |
Total non-mark-up /interest income | 4,974,541 | 4,167,400 | 19.4% |
Total income | 21,272,707 | 21,453,182 | -0.8% |
Non-mark-up/interest expenses |
|
|
|
Operating expenses | 9,829,367 | 9,391,696 | 4.7% |
Worker’s welfare fund | 230,258 | 217,299 | 6.0% |
Other charges | 29,217 | 209,313 | -86.0% |
Total non-mark-up/interest expenses | 10,088,842 | 9,818,308 | 2.8% |
Share of profit of associates | 276,544 | 260,896 | 6.0% |
Profit before provisions | 11,460,409 | 11,895,770 | -3.7% |
Provisions/(reversals) and write offs-net | (213,343) | 779,656 | – |
Profit before taxation | 11,673,752 | 11,116,114 | 5.0% |
Taxation | 4,624,167 | 4,505,932 | 2.6% |
Profit after taxation | 7,049,585 | 6,610,182 | 6.6% |
Basic and diluted earnings per share | 5.92 | 5.59 | 5.9% |
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