August 17, 2022 (MLN): MCB Bank Limited (PSX: MCB) has reported a net income of Rs11.39 billion in 1HCY22 ended June 30, 2022, down by 24% YoY when compared to Rs15bn recorded in the same period last calendar year, mainly on the back of imposition of super tax.
This translates into basic and diluted earnings per share of Rs9.59 during the review period as compared to Rs12.56 in the same period last year (SPLY).
In conjunction with financial results, the Board of Directors has recommended the interim cash dividend of Rs4 per share i.e. 40% for the half year ended June 30, 2022. This is in addition to the interim cash dividend already paid at Rs5 per share i.e. 50%.
Going by the financial results, the bank’s interest income went up by 47% YoY while interest expenses surged by around 73% YoY, hence MCB’s net interest income (NII) stood at Rs42bn, showing an increase of 25% YoY due to higher policy rate in order to tame down rising inflation.
While, the non-funded income (NFI) of the bank saw a 31% YoY jump, clocking in at Rs13.23bn. The bank witnessed an 11.5% increase in fee income whereas dividend and foreign exchange incomes soared by 3x YoY & 29.5% respectively, driven by improved transactional volumes, business activities and investments toward digital transformation.
On the expense front, the bank’s total non-mark-up expenses rose by 13% YoY to Rs23bn on the back of inflationary pressures amidst currency devaluation and rising commodity prices, higher compliance-related regulatory charges and expansion in branch outreach.
The bank reported a reversal of Rs921mn, registering a fall of 54% YoY in 1HCY22.
Accordingly, MCB declared a profit before income tax at Rs33.45bn for the half year ended on June 30, 2022, 30% higher when compared to Rs25.6bn in the same period of the last year.
The bank paid an amount of Rs22bn as taxes during 1HCY22, showing a two-fold increase against Rs10.68bn taxes paid in SPLY, due to imposition of super tax in the large-scale industry.
|
Consolidated Profit and Loss Account for the half year ended June 30, 2022 (Rupees 000) |
|||
|---|---|---|---|
|
|
Jun-22 |
Jun-21 |
% Change |
|
Mark-up/return/interest earned |
92,315,591 |
62,733,431 |
47.2% |
|
Mark-up/return/interest expensed |
50,066,043 |
29,001,691 |
72.6% |
|
Net mark-up/interest income |
42,249,548 |
33,731,740 |
25.3% |
|
|
|
|
|
|
Non-mark-up/interest income |
|
|
|
|
Fee and commission income |
7,373,534 |
6,611,051 |
11.5% |
|
Dividend income |
1,104,802 |
853,078 |
29.5% |
|
Foreign exchange income |
4,237,583 |
1,424,246 |
197.5% |
|
Income from derivatives |
11,970 |
8,545 |
40.1% |
|
Gain/ (loss) on securities |
377,997 |
534,539 |
-29.3% |
|
Other income |
123,470 |
669,132 |
-81.5% |
|
Total non-mark-up /interest income |
13,229,356 |
10,100,591 |
31.0% |
|
Total income |
55,478,904 |
43,832,331 |
26.6% |
|
Non-mark-up/interest expenses |
|
|
|
|
Operating expenses |
22,582,275 |
19,731,252 |
14.4% |
|
Worker’s welfare fund |
667,307 |
510,192 |
30.8% |
|
Other charges |
64,668 |
376,395 |
-82.8% |
|
Total non-mark-up/interest expenses |
23,314,250 |
20,617,839 |
13.1% |
|
Share of profit of associates |
362,387 |
431,851 |
-16.1% |
|
Profit before provisions |
32,527,041 |
23,646,343 |
37.6% |
|
Provisions/(reversals) and write offs-net |
(921,170) |
(1,999,908) |
-53.9% |
|
Profit before taxation |
33,448,211 |
25,646,251 |
30.4% |
|
Taxation |
22,061,683 |
10,682,617 |
106.5% |
|
Profit after taxation |
11,386,528 |
14,963,634 |
-23.9% |
|
Basic and diluted earnings per share |
9.59 |
12.56 |
-23.6% |
Copyright Mettis Link News
Posted on:2022-08-17T13:12:29+05:00
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