MCB Bank declares Rs22.84 billion profits for nine months

MCB Bank declares Rs22.84 billion profits for nine months

Staff Reporter
October 27, 2021

MCB Bank declares Rs22.84 billion profits for nine months

KARACHI: The MCB Bank Limited has recorded a decline of 2.43 per cent in its net profit for the nine months period ended September 30, 2021, a bourse filing said on Wednesday.

The profit-after-tax of the bank fell to Rs22.84 billion during January-September 2021, compared with Rs23.41 billion in the corresponding period of the last year.

The board of directors of the bank in its meeting approved the financial results for the nine months period ended September 30, 2021.

The board approved an interim cash dividend for the quarter ended September 30, 2021 at Rs4.5/share, i.e., 45 per cent. This is in addition to the interim dividend already paid at Rs9.50/share, i.e., 95 per cent.

The net interest income of the bank settled at Rs51.1 billion, portraying a decline of 13 per cent YoY during the nine months of the current year, while down one per cent on a quarter-on-quarter (QoQ) basis, mainly on the back of higher interest expense.

NFI has posted a 5 per cent YoY uptick led by fee income worth Rs10 billion against Rs8.8 billion recorded during the same period of the last year, marking a jump of 15 per cent YoY.

The bank booked a significant net reversal of Rs1.5 billion for the quarter ended September 30, 2021, taking the total reversals to Rs3.5 billion for the nine months of 2021, which can be attributed to improved outlook on the asset quality; following the rebound in the economic activity across the country.

The operating expenses clocked-in higher by 7 per cent YoY during the period under review and one per cent QoQ with cost/income settling at 42 per cent during the nine months of CY21 against 47 per cent during the same period of the last year. Effective tax rate was 41.5 per cent during the period under review.

ABL’s net profit jumps to Rs13.2 billion

The Allied Bank Limited (ABL) announced 4 per cent growth in its net profit for the nine months period ended September 30, 2021.

The bank declared Rs13.2 billion as the profit-after-tax for January–September 2021, compared with Rs12.63 billion in the same period of the last year.

The earnings per share of the bank increased to Rs11.53 as against Rs11.03, whereas the bank announced a dividend of Rs6 as against Rs2/share.

The net interest income of the bank settled at Rs34.7 billion for the nine months period ended September 30, 2021, decreasing 7 per cent YoY and 5 per cent on a quarter-on-quarter basis.

NFI of the bank accelerated 26 per cent YoY and declined by 7 per cent QoQ. NFI of the bank posted a healthy surge on a yearly basis led by impressive dividend income, which posted a 103 per cent jump YoY; followed by a 22 per cent YoY increase in the fee income.

On a sequential basis, NFI decreased 7 per cent, mainly on the back of lower capital gains.

The bank posted a net reversal of Rs252 million during the quarter, taking the total number to Rs561 million, which can be attributed to improved outlook on the asset quality; following the rebound in the economic activity across the country.

The operating expenses of the bank have witnessed a jump of 10 per cent YoY during the nine months of 2021. The effective tax rate settled at 41 per cent during July-September 2021.