February 20, 2019 (MLN): Muslim Commercial Bank Limited (MCB)’s profits after tax for the year ended on December 2018 declined by 7% to Rs 20.4 billion as compared to same period last year primarily due to increase in operation expenses and higher taxes.
Despite a growth in the bank’s net markup income and foreign exchange income by 10% and 113% respectively, the bank still failed to mark any significant improvement in terms of profitability. This was due to a counter increase in the bank’s interest expenses.
However, the bank did not plunge as low as the market was expecting as it reported profits of Rs. 20.4 billion against an estimated amount of Rs 15 billion on average.
MCB reported its earning per share at Rs17.17. Moreover, the Board of Directors announced a final cash dividend at Rs.12 per share i.e. 120%.
|
CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED DECEMBER 2018 ( Rupees '000') |
|||
|---|---|---|---|
|
|
Dec-18 |
Dec-17 |
% Change |
|
Mark-up / return / interest earned |
87,502,337 |
76,189,800 |
15% |
|
Mark-up / return / interest expensed |
39,495,913 |
32,393,716 |
22% |
|
Net mark-up / interest income |
48,006,424 |
43,796,084 |
10% |
|
NON MARK-UP / INTEREST INCOME |
|
|
|
|
Fee and commission income |
11,636,751 |
10,454,980 |
11% |
|
Dividend income |
1,156,944 |
1,632,466 |
-29% |
|
Foreign exchange income |
3,568,576 |
1,677,861 |
113% |
|
Income from derivatives |
11,845 |
15,487 |
-24% |
|
Gain on securities |
1,257,148 |
4,666,214 |
-73% |
|
Other Income |
434,351 |
51,203 |
748% |
|
Total non-markup / interest Income |
18,065,615 |
18,498,211 |
-2% |
|
Total Income |
66,072,039 |
62,294,295 |
6% |
|
NON MARK-UP / INTEREST EXPENSES |
|
|
|
|
Operating expenses |
35,715,447 |
30,297,380 |
18% |
|
Workers welfare fund |
644,304 |
625,969 |
3% |
|
Other charges |
174,431 |
142,953 |
22% |
|
Total non-markup /interest expenses |
36,534,182 |
31,066,302 |
18% |
|
Share of profit of associates |
446,257 |
433,119 |
3% |
|
Profit before provisions |
29,984,114 |
31,661,112 |
-5% |
|
(Reversals) / provisions and write offs – net |
(821,807) |
1,047,405 |
-178% |
|
Extra ordinary / unusual items |
– |
– |
|
|
PROFIT BEFORE TAXATION |
30,805,921 |
30,613,707 |
1% |
|
Taxation |
10,390,637 |
8,565,943 |
21% |
|
PROFIT AFTER TAXATION |
20415284 |
22047764 |
-7% |
|
Basic and diluted earnings per share (Rupees) |
17.17 |
19.3 |
-11% |
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