MCB’s profit after tax reported at Rs7.9 billion for April-June

MCB Bank reported a consolidated profit-after-tax of Rs7.9 billion in the quarter ended June, 2021, up 15.7% year-on-year, a result that was above street consensus, according to KASB Securities.

In a notice sent to the Pakistan Stock Exchange (PSX) on Wednesday, MCB Bank reported an EPS of Rs6.64 per share, up from Rs5.74 it posted in the same quarter of the previous year.

In the six-month period, MCB Bank posted a profit of Rs14.88 billion, an increase of 10.9% year-on-year.

The Board of Directors also declared a cash dividend for the quarter at Rs 5 per share. This is in addition to interim dividend already paid at Rs 4.50 per share, taking 1H2021 cash dividend to Rs 9.5.

KASB Securities, in a note sent after the results, said that MCB's profitability increased 12% quarter-on-quarter during April-June, attributed to provisioning reversal.

However, Net Interest Income (NII) declined by 17% YoY as the policy rate remained unchanged during the period under review, it added.

MCB’s NFI increased by 46% YoY in 2QCY21 as compared as lockdown restrictions were eased off and economic activity picked up. Major support came from a YoY jump in fee income that clocked in at Rs 3.0bn as against Rs 2.5bn.

Additionally, other income increased to Rs 661 million as opposed to Rs 61 million in the corresponding period last year.

Notably, the bank recognised a provisioning reversal of Rs 1.8 billion that resulted in expansion in bottom-line, said KASB.