MCB’s profit up 10% in 2022, forex income jumps 149%

MCB Bank Limited posted consolidated earnings of Rs34.451 billion in 2022, up 10% from a year ago, a notice sent to the Pakistan Stock Exchange (PSX) stated on Wednesday.

MCB announced an interim cash dividend of Rs6 per share i.e. 60% for the quarter ended December 31 2022. This is in addition to the interim dividend already paid at Rs14 per share i.e. 140%.

As per the consolidated profit and loss account of MCB, the bank said its profit-before-tax during 2022 increased to Rs75.34 billion against Rs53.27 billion during 2021, representing an increase of 41.4%.

Profit After Tax (PAT) registered an increase of 10% from Rs31.32 billion, translating into Earning Per Share (EPS) of Rs29 compared to an EPS of Rs26.31 for the same time last year.

Moreover, MCB’s net interest income during 2022 increased by 40% over corresponding period last year. Non-markup income increased to Rs25.91 billion in 2022 against Rs20.65 billion in 2021, registering a growth of 25.4%.

The increase in non-markup income came mainly from foreign exchange, which increased from Rs3.84 billion in 2021 to Rs9.58 billion, an increase of 149%.

The development comes as banks made excessive gains under foreign exchange income due to currency volatility last year, raising concerns among authorities.

In December, SBP Governor Jameel Ahmed informed the National Standing Committee on Finance and Revenue that investigations against leading banks have been launched regarding exchange rate manipulation.

Later on, the Ahmed said that the SBP had completed its investigation over alleged exchange-rate manipulation by commercial banks in the country, and will put forth a decision after consultations on whether the apparent penalty is to be pursued from a regulatory or fiscal standpoint.

Meanwhile, MCB also said its non markup/ interest expense jumped up to Rs49.85 billion in 2022, in comparison to Rs42.17 billion in 2021.