MCB’s net profits rise by 32% YoY in 1QCY20

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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Posted on: 2020-04-22T13:52:00+05:00

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