MCB Bank posts profit of Rs25.5 billion

Result below market estimates, EPS amounts to Rs22.96.

KARACHI: MCB Bank posted an unconsolidated net profit of Rs25.5 billion for 2015, which is 5% higher than the earnings recorded in the preceding year, according to a stock notice on Tuesday.

The result was below the market estimate, as higher-than-expected provisions as well as increased tax liabilities kept growth of the bank’s bottom line in check.

The earnings per share of MCB Bank clocked up at Rs22.96 as opposed to Rs21.85 last year. The board of directors also announced a final cash dividend of Rs4 per share, which takes the cumulative payout in 2015 to Rs16 per share. The net interest income of MCB Bank amounted to Rs48.8 billion in 2015, up 7.3% from a year ago. In contrast, the YoY increase in the non-interest income of the bank clocked up at 32.2%. Non-interest income equalled Rs17.1 billion, as the net gains on the sale of securities rose 2.6 times over the year.

According to BMA Capital, earnings growth remained subdued partly because of the operational expenses and taxes, which jumped 8% and 35%, respectively, on a YoY basis.

Quarterly earnings of MCB Bank in Oct-Dec reported a decline of 20% on a sequential basis on account of lower net interest income after provisions, it added. Non-interest income during the last quarter posted a decline of 10% over Jul-Sept. Following the less-than-expected earnings announcement, the share of MCB Bank lost Rs2.15 per share on the Pakistan Stock Exchange to close at Rs206.50.

Published in The Express Tribune, February 10^th, 2016.

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