April 27, 2022 (MLN): MCB Bank has reported net profits of Rs9.1 billion (EPS: Rs7.66) for the quarter ended March 2022, which was 29.4% higher than the net profits of Rs7bn recorded in the corresponding period last calendar year.
The rise in profitability is attributable to higher other income, a reversal in provisions, and higher net interest income (NII).
During the quarter under review, the bank’s interest income went up by 39.5% YoY while interest expenses decreased by 8% YoY, hence MCB’s NII stood at Rs19.3bn, showing an increase of nearly 19% YoY on the back of growth in interest income amid an uptick in asset yields supported by strong current accounts franchise. The same helped offset the impact of the spike in interest expenses.
While non-funded income (NFI) of the bank inched up modestly by 9% YoY to stand at Rs5.8bn. The increase in non-markup income was mainly driven by FX income which was amplified by 2.1x YoY. The support further came from 100% and 5.9x YoY increase in dividend and other income respectively, while fee income dipped slightly by 2.4% YoY.
Meanwhile, MCB booked net reversals of Rs992mn, up by 4.6x YoY as recoveries against the Bank’s ex-NIB portfolio including the written-off portfolio may have continued to flow during the quarter, a note by Taurus Securities said.
Operating expense clocked in at Rs10.7bn translating into an increase of 9.4% YoY during1QCY22. This translated to cost/income decreasing by 3ppts to stand at 44%.
The financial result of the bank was accompanied by a final cash dividend of Rs5 per share i.e., 50% for the quarter ended March 31, 2022.
|
Consolidated Profit and Loss Account for the Quarter ended March 31, 2022 (Rupees 000) |
|||
|---|---|---|---|
|
|
Mar-22 |
Mar-21 |
% Change |
|
Mark-up/return/interest earned |
42,688,643 |
30,601,487 |
39.5% |
|
Mark-up/return/interest expensed |
23,330,894 |
14,303,321 |
63.1% |
|
Net mark-up/interest income |
19,357,749 |
16,298,166 |
18.8% |
|
|
|
|
|
|
Non-mark-up/interest income |
|
|
|
|
Fee and commission income |
3,548,604 |
3,636,522 |
-2.4% |
|
Dividend income |
698,762 |
347,940 |
100.8% |
|
Foreign exchange income |
1,285,844 |
605,814 |
112.3% |
|
Income/ (loss)from derivatives |
2,439 |
9,194 |
-73.5% |
|
Gain/ (loss) on securities |
290,411 |
366,710 |
-20.8% |
|
Other income |
49,491 |
8,361 |
491.9% |
|
Total non-mark-up /interest income |
5,875,551 |
4,974,541 |
18.1% |
|
Total income |
25,233,300 |
21,272,707 |
18.6% |
|
Non-mark-up/interest expenses |
|
|
|
|
Operating expenses |
10,754,408 |
9,829,367 |
9.4% |
|
Worker’s welfare fund |
306,068 |
230,258 |
32.9% |
|
Other charges |
22,502 |
29,217 |
-23.0% |
|
Total non-mark-up/interest expenses |
11,082,978 |
10,088,842 |
9.9% |
|
Share of profit of associates |
204,471 |
276,544 |
-26.1% |
|
Profit before provisions |
14,354,793 |
11,460,409 |
25.3% |
|
Provisions/(reversals) and write offs-net |
(992,388) |
(213,343) |
365.2% |
|
Profit before taxation |
15,347,181 |
11,673,752 |
31.5% |
|
Taxation |
6,241,532 |
4,624,167 |
35.0% |
|
Profit after taxation |
9,105,649 |
7,049,585 |
29.2% |
|
Basic and diluted earnings per share |
7.66 |
5.92 |
29.4% |
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