MCB Bank records historic 150% profit growth in 1HCY23
MCB Bank has astounded investors with its exceptional financial
performance, achieving a remarkable 150 percent growth in profit after tax
(PAT) for the first half of the calendar year 2023.
The bank reported a profit after tax of Rs 28.60 billion for the
period of January to June 2023, compared to Rs 11.37 billion in the same period
of the previous year, demonstrating its robust financial performance.
The earnings per share (EPS) also witnessed a significant surge,
reaching Rs 24.13 compared to Rs 9.59 in the same period of the last year,
reflecting strong earnings per outstanding share.
During a board of directors meeting on August 2, 2023, MCB Bank
Limited recommended an interim cash dividend for the half-year ended June 30,
2023, at Rs 7 per share, representing 70 percent. This dividend is in addition
to the interim dividend of Rs 6 per share, or 60 percent, already paid.
Financial analysts at Arif Habib Limited highlighted that MCB
Bank achieved an all-time high in half-yearly PAT during 1HCY23, showcasing its
outstanding financial performance.
In the second quarter of CY23, MCB Bank reported earnings of Rs
14.7 billion (EPS: Rs 12.38), demonstrating a remarkable uptick of 542 percent
Year over Year (YoY) and 27 percent Quarter over Quarter (QoQ). This impressive
rise in profitability before tax (YoY) is primarily attributed to a substantial
increase in net interest and non-interest income.
Net Interest Income for the bank settled at Rs 41.2 billion during
2QCY23, exhibiting an impressive 80 percent YoY growth and 25 percent QoQ
increase. Interest income surged by 81 percent YoY and 28 percent QoQ, while
interest expenses were up by 83 percent YoY and 31 percent QoQ, mainly
influenced by the impact of the policy rate hike during the outgoing quarter.
Consequently, the net interest income during 1HCY23 reached Rs 74.2 billion,
marking a remarkable 76 percent YoY increase.
The bank's Non-Funded Income (NFI) witnessed a 16 percent YoY
increase during 1HCY23, primarily driven by a surge in fee and commission
income, which posted a 37 percent YoY increase due to higher trade volumes.
Additionally, dividend income recorded a substantial 79 percent YoY increase.
However, FX income declined by 3 percent YoY, settling at Rs 2.8 billion.
Furthermore, the bank recorded a loss on the sale of securities amounting to Rs
12 million, compared to a gain of Rs 88 million recorded in the same period
last year (SPLY).
During 2QCY23, the bank provisioned Rs 1.5 billion, representing
a significant 20.9x YoY increase (2QCY22: Rs 71 million). As a result, the
total provisioning during 1HCY23 amounted to Rs 2.2 billion compared to
reversals of Rs 921 million in SPLY.
Source: pkrevenue.com