October 23, 2018 (MLN): Muslim Commercial Bank (MCB) has suffered a decline worth Rs.5.5 billion in profits for the nine month period ended on September 30, 2018, when compared to profits earned during the same period last year.
As per a formal report on MCB’s financial earnings for the period, the institution gained Rs.2.5 billion in net mark-up/interest income after provisions.
However, a heavy decline of 76% in gain on sale of securities, dragged down total non-mark-up /interest income by Rs.1.9 billion. The bank had to bear additional burden on account of administrative expenses which grew substantially, by Rs.5.5 billion.
These components, along with higher taxation weighed down MCB’s profits on the whole, pulling them down from Rs.19 billion to Rs.13.6 billion.
MCB’s basic and diluted earnings per share have also dropped by 31%, as they tumbled down to Rs.11.46 per share.
In addition to this, MCB has also recommended an interim cash dividend at Rs.4 per share (40%) in addition to the interim dividend already paid at Rs.8 per share (80%).
|
Profit and Loss Account for the nine month period ended September 30,2018 (Rupees '000) |
|||
|---|---|---|---|
|
|
Sep-18 |
Sep-17 |
% Change |
|
Mark-up/return/interest earned |
61,534,246 |
56,894,828 |
8.2% |
|
Mark-up/return/interest expensed |
(26,401,364) |
(24,580,169) |
7.4% |
|
Net mark-up/interest income |
35,132,882 |
32,314,659 |
8.7% |
|
Provision/(reversal) against loans and advances – net |
(1,910,064) |
(2,469,249) |
-22.6% |
|
Provision/(reversal for diminution in the value of investments – net |
295,800 |
575,404 |
-48.6% |
|
Bad debts written off directly |
30 |
14 |
114.3% |
|
Net mark-up/interest income after provisions |
36,747,116 |
34,208,490 |
7.4% |
|
Non mark-up/interest income |
|
|
|
|
Fee, commission and brokerage income |
8,302,696 |
7,533,178 |
10.2% |
|
Dividend income |
724,689 |
1,003,452 |
-27.8% |
|
Income from dealing in foreign currencies |
1,356,808 |
1,101,265 |
23.2% |
|
gain on sale of securities – net |
977,302 |
4,105,789 |
-76.2% |
|
Unrealized gain/(loss) of revaluation of investments classified as held for trading |
(8,236) |
(5,973) |
37.9% |
|
Other income |
924,414 |
449,747 |
105.5% |
|
Total non-mark-up /interest income |
12,277,673 |
14,187,458 |
-13.5% |
|
Non mark-up/interest expenses |
|
|
|
|
Administrative expenses |
27,186,042 |
21,623,621 |
25.7% |
|
Other provision – net |
(714,499) |
555,078 |
-228.7% |
|
Other charges |
579,932 |
635,891 |
-8.8% |
|
Total non-mark-up/interest expenses |
27,051,475 |
22,814,590 |
18.6% |
|
Share of profit of associates |
477,014 |
494,867 |
-3.6% |
|
Extraordinary / unusual item |
– |
– |
|
|
Profit before taxation |
22,450,328 |
26,076,225 |
-13.9% |
|
Taxation |
8,826,823 |
6,953,371 |
26.9% |
|
Profit after taxation |
13,623,505 |
19,122,854 |
-28.8% |
|
Basic and diluted earnings per share (Rupees) |
11.46 |
16.77 |
-31.7% |
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