April 22, 2020 (MLN): Despite a challenging macroeconomic environment and a tough business climate, MCB Bank Limited (MCB) has demonstrated an impressive 32% YoY increase in net profits for 1QCY20 ended on March 31st, 2020.
The Bank’s net profits after tax clocked in at Rs 6.6 billion compared to Rs 5 billion reported in the corresponding period of last year. These results were accompanied by an Interim Cash Dividend of Rs 5 i.e. 50% for the period mentioned above.
During the period, the bank observed a healthy growth in Net Interest Income by 20.6% YoY to Rs 17.2 billion against Rs 15 billion in the same quarter last year due to higher interest rate.
Furthermore, 80% YoY rise in income from foreign exchange operations and no change in operating expenses provided additional support to MCB’s profits.
However, a downtick in income from derivatives, gain on securities and other income by 166%, 143% and 28% YoY and put a limit to bank’s profitability.
The financial statement indicates that MCB has been witnessing persevered growth which reflected in its earnings per share which rose from Rs 4.21 per share to Rs 5.59 per share.
|
Profit and Loss Account for the Quarter ended March 31, 2020 (Rupees '000) |
|||
|---|---|---|---|
|
|
Mar-20 |
Mar-19 |
% Change |
|
Mark-up/return/interest earned |
41,656,568 |
29,336,108 |
42.0% |
|
Mark-up/return/interest expensed |
24,370,786 |
14,997,416 |
62.5% |
|
Net mark-up/interest income |
17,285,782 |
14,338,692 |
20.6% |
|
|
|
|
|
|
Non-mark-up/interest income |
|
|
|
|
Fee and commission income |
3,125,528 |
3,063,815 |
2.0% |
|
Dividend income |
200,326 |
202,341 |
-1.0% |
|
Foreign exchange income |
834,559 |
461,665 |
80.8% |
|
Income from derivatives |
(10,405) |
15,730 |
-166.1% |
|
Gain on securities |
(6,254) |
14,628 |
-142.8% |
|
Other income |
23,646 |
32,698 |
-27.7% |
|
Total non-mark-up /interest income |
4,167,400 |
3,790,877 |
9.9% |
|
Total income |
21,453,182 |
18,129,569 |
18.3% |
|
Non mark-up/interest expenses |
|
|
|
|
Operating expenses |
9,391,696 |
9,461,219 |
-0.7% |
|
Workers welfare fund |
217,299 |
182,997 |
18.7% |
|
Other charges |
209,313 |
46,272 |
352.4% |
|
Total non-mark-up/interest expenses |
9,818,308 |
9,690,488 |
1.3% |
|
Share of profit of associates |
260,896 |
157,543 |
65.6% |
|
Profit before provisions |
11,895,770 |
8,596,624 |
38.4% |
|
Provisions/(reversals) and write offs-net |
779,656 |
(448,170) |
|
|
Profit before taxation |
11,116,114 |
9,044,794 |
22.9% |
|
Taxation |
4,505,932 |
4,034,572 |
11.7% |
|
Profit after taxation |
6,610,182 |
5,010,222 |
31.9% |
|
Basic and diluted earnings per share |
5.59 |
4.21 |
32.8% |
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