MCB’s first-quarter results supported by NFI and provisions reversal

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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Posted on: 2021-04-20T13:50:00+05:00

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