KARACHI: MCB Bank on Wednesday announced sharp decline of 71 per cent in profit for the second quarter ended June 30, 2022.
According to financial results submitted to Pakistan Stock Exchange (PSX), the bank announced profit after tax of Rs2.29 billion for the quarter ended June 30, 2022 as compared with Rs7.87 billion in the same quarter of last year.
MCB Bank declared earnings per share (EPS) at Rs1.93 for the quarter under review as compared with EPS of Rs6.64 in the same quarter last year.
Analysts at KASB Research said that the result is below estimates of Rs2.2 per share. The deviation is mainly on account of higher than expected admin expense that increased by 19 per cent Year on Year (YoY)/ 10 per cent Quarter on Quarter (QoQ).
The result was accompanied with an interim cash dividend of Rs4.0 per share. This has taken the first half year ended June 30, 2022 payout to Rs9.0/share. Last year, the payout came in at Rs9.5/share.
MCB posted strong Net Interest Income (NII) of Rs22.9 billion in second quarter with the reversal of interest rate. Net Fee Income (NFI) rose by 42 per cent YoY in the second quarter of 2022 where major support came from fee and foreign exchange income increasing by 29 per cent YoY and 3.6x YoY, respectively.
The bank recorded a provisioning expense of Rs71 million in the second quarter. The analysts think this is because of superior asset quality.
Profit Before Tax (PBT) rose by 30 per cent YoY, however, Profit After Tax (PAT) saw a decline of 71 per cent YoY/ 75 per cent QoQ as the impact on 10 per cent super tax was recognized in the quarter under review.
Consequently, ETR came in at 87 per cent. This along with higher than expected admin expense contained the profits.