Karachi, October 23, 2024 – MCB Bank has released its financial results for the third quarter ending September 30, 2024, revealing an 8% decline in earnings compared to the same period last year.
According to analysts at Arif Habib Limited, the bank reported earnings of PKR 18.1 billion for 3QCY24, translating to an Earnings per Share (EPS) of PKR 15.3. This figure marks a notable year-on-year decrease, although it reflects an 8% increase on a quarter-on-quarter basis.
For the first nine months of the calendar year 2024 (9MCY24), MCB Bank reported total earnings of PKR 52.7 billion, representing a 9% year-on-year increase. This uptick can be attributed to a rise in total income coupled with a decline in provisioning costs. In line with its performance, the bank declared a cash dividend of PKR 9.0 per share for 3QCY24, bringing the total payout for 9MCY24 to PKR 27.0 per share.
The bank’s interest income for the quarter reached PKR 110.8 billion, a 10% increase from the previous year, while also climbing 4% from the prior quarter. Conversely, interest expenses surged by 19% year-on-year and 1% quarter-on-quarter, totaling PKR 65.9 billion. Consequently, the Net Interest Income (NII) remained stable at PKR 44.9 billion compared to the same quarter last year but rose by 9% from the preceding quarter. For 9MCY24, NII totaled PKR 128.5 billion, reflecting an 8% year-on-year growth.
Non-Funded Income (NFI) also saw an impressive performance, growing by 6% year-on-year during 3QCY24. The cumulative NFI for 9MCY24 reached PKR 29.2 billion, marking a 19% increase. This growth was primarily driven by an 18% rise in fee income, which amounted to PKR 18.7 billion, alongside a 22% increase in foreign exchange income, climbing to PKR 7.8 billion. However, the bank reported a 14% decline in gains from the sale of securities, which totaled PKR 174 million.
The bank incurred a provisioning charge of PKR 258 million in the latest quarter, bringing the total for 9MCY24 to PKR 818 million, a significant reduction compared to PKR 1.8 billion in provisioning during the same period last year. Operating expenses (OPEX) increased by 16% year-on-year and 8% quarter-on-quarter, amounting to PKR 19.3 billion. Consequently, the Cost/Income ratio stood at 35.4% for 3QCY24, up from 30.8% in the same period last year. The effective tax rate for the quarter was recorded at 49.1%, slightly higher than the 48.8% reported last year.
Overall, while MCB Bank experienced a decline in quarterly earnings, its performance in the first nine months of the year demonstrates resilience and growth in various income streams.