August 07, 2024 (MLN): MCB Bank Limited (PSX: MCB) disclosed its financial results for the quarter ended June 30, 2024, as per which the bank's profit posted a growth of 14.6% YoY to clock in at Rs16.84 billion [EPS: Rs14.17] compared to Rs14.7bn [EPS: Rs12.38] earned in the same quarter last year.
Along with the financial results, the board of directors of MCB has also announced an interim cash dividend for the quarter at Rs9 per share.
This is in addition to Interim Dividend(s) already paid at Rs9 per share i.e. 90 %.
An overview of the profit and loss statement showed that MCB managed to make a higher profit despite a meager drop in its interest earnings.
The net interest income (NII) stood at Rs41.15 billion, just 0.05% lower compared to the previous year, as interest expenses increased at a greater rate than interest income.
The bank’s Non-Markup Income (NMI) was the primary source of profit boost, up by 10.64% YoY to 9.86bn in Q2 CY24.
The main drivers of the rise in net income were fee and commission income, gains on securities, and foreign exchange income.
Meanwhile, there was a modest decline in dividend income and income from derivatives.
The expense section displayed a growth of 19.09% YoY, as the sum of Operating expenses, Workers felfare fund and other charges was reported at Rs17.97bn in Q2 CY24.
Going further, the bank incurred a provision expense of Rs588.06m, reflecting a reduction of 60.55% YoY during the review period compared to the expense of Rs1.49bn in the corresponding period last year.
On the tax front, the bank paid Rs16.16bn, 15.53% lower than the amount paid in Q2 CY23.
| Consolidated Profit and Loss Account for the quarter ended June 30, 2024 (Rupees '000) | |||
|---|---|---|---|
| Jun-24 | Jun-23 | % Change | |
| Mark-up/return/interest earned | 106,262,286 | 89,999,147 | 18.07% |
| Mark-up/return/interest expensed | 65,108,013 | 48,824,177 | 33.35% |
| Net mark-up/interest income | 41,154,273 | 41,174,970 | -0.05% |
| Non mark-up/interest income | |||
| Fee and commission income | 5,992,042 | 5,254,002 | 14.05% |
| Dividend income | 559,256 | 724,997 | -22.86% |
| Foreign exchange income | 3,082,966 | 2,870,941 | 7.39% |
| Income from derivatives | 777 | 819 | -5.13% |
| Loss/Gain on securities | 74,614 | (11,528) | -747.24% |
| Other income | 146,552 | 69,044 | 112.26% |
| Total non mark-up /interest income | 9,856,207 | 8,908,275 | 10.64% |
| Total income | 51,010,480 | 50,083,245 | 1.85% |
| Non mark-up/interest expenses | |||
| Operating expenses | 17,231,685 | 14,245,212 | 20.96% |
| Workers felfare fund | 652,157 | 678,911 | -3.94% |
| Other charges | 88,868 | 167,902 | -47.07% |
| Total non mark-up/interest expenses | 17,972,710 | 15,092,025 | 19.09% |
| Share of profit of associates | 553,826 | 327,921 | 68.89% |
| Profit before provisions | 33,591,596 | 35,319,141 | -4.89% |
| Provisions/(reversals) and write offs-net | 588,059 | 1,490,560 | -60.55% |
| Profit before taxation | 33,003,537 | 33,828,581 | -2.44% |
| Taxation | 16,162,154 | 19,133,413 | -15.53% |
| Profit after taxation | 16,841,383 | 14,695,168 | 14.60% |
| Basic and diluted earnings per share | 14.17 | 12.38 | – |
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Posted on: 2024-08-07T13:13:17+05:00
