KARACHI: MCB Bank Limited has announced net profits of Rs22.174 billion for the year ended December 31, 2016, showing a decline of 11.42 percent as compared to Rs25.034 billion earned last year, a bourse filing said on Wednesday.
The earnings per share (EPS) for 2016 clocked in at Rs19.82 as against Rs22.38 in 2015. The bank also announced a final cash dividend of Rs4/share, which is in addition to the interim dividend of Rs12/share already paid to the shareholders.
Analyst Amreen Soorani in a report issued by JS Global said the decline in earnings was due to unexpected provisioning expenses under loans and advances booked in the fourth quarter of the year.
The MCB's net interest income (NII) declined 10 percent to Rs44.79 billion in 2016 as compared to Rs49.668 billion in 2015, as the bank witnessed hefty PIBs maturity investment during the year.
Despite high capital gains, non-core income also slid two percent YoY to Rs16.22 billion, as fee income dipped 1.02 percent during 2016.
“Nonetheless, the MCB continued impressive performance in operating expenses with flat growth, keeping its cost to income ratio in check at 39 percent,” Soorani added.
Analyst Fawad Bashir in a report issued by Arif Habib Limited (AHL) said the last quarter did most of the damage, as the profits declined by massive 38 percent to stand at Rs4.3 billion as compared to Rs5.05 billion in the last quarter of 2015.
On the gross markup income side, the bank reported a decrease of Rs12.97 billion, which was mainly on account of decreased yields on advances and investments in line with the interest rate movements.
The administrative expense base (excluding pension fund reversal) recorded a nominal decrease of 0.67 percent over last year, depicting continued focus on cost control and deployment of cost-effective measures.
The bank subjectively downgraded its portfolio in the last quarter of 2016 on prudent basis.
The total asset base of the bank was reported at Rs1,051.81 billion, presenting an increase of 4.72 percent over 2015.
Analysis of the asset mix highlights that net investments have decreased Rs9.77 billion (-1.73 percent) and net advances increased Rs43.86 billion (+14.42 percent) over December 31, 2015.
The coverage and infection ratios improved to 90.82 percent and 5.90 percent, respectively.
PTCL’s full-year profit falls 30pc
Profit of Pakistan Telecommunication Company Limited (PTCL) sharply fell almost 30 percent to Rs6.834 billion for the year ended December 31, 2016, a bourse filing said on Wednesday, as the teleco’s severance payment took a heavy toll on its earnings.
The company earned a profit of Rs8.759 billion in 2015.
Earnings per share remained at Rs1.34 in 2016 as compared to Rs1.72 in 2015, said a notice issued to the Pakistan Stock Exchange.
PTCL’s group profit also dropped 13 percent to Rs1.622 billion as of December 31, 2016.
“With the objective to align the resources with the current market challenges, PTCL implemented a voluntary separation scheme (VSS) during 2016 and the related costs of Rs4.6 billion were accounted for in the financial results of 2016,” the company said in a statement.
“Accordingly, the PTCL group net profit for the year was Rs1.6 billion, which would have been Rs4.7 billion, 152 percent increase over last year, had there been no VSS.”
The company said without VSS impact, net profit of PTCL would also have been up 13 percent to Rs9.9 billion. The statement said the group’s revenue stood at Rs117.2 billion for 2016, “and with effective cost optimisation measures, the operating expenses of the group fell three percent.”
“PTCL group’s financial position remained healthy and stable during 2016 due to continuous efforts to optimise costs, resulting in 25 percent increase in cash-based funds in the form of short-term investments and cash and bank balances,” it added.
PTCL’s revenue for 2016 was Rs71.4 billion with growth in fixed line broadband revenue.
The company’s operating expenses during the period fell seven percent, resulting in six percent growth in operating profits.
“PTCL Group is committed to building a digital and connected Pakistan,” Daniel Ritz, president and chief executive officer at PTCL said. “The group is investing extensively to transform and upgrade its network to provide reliable and resilient high speed internet and telephone services.”
Engro Fertilizer’s profit falls 37.2pc
Engro Fertilizer has announced net profits of Rs9.28 billion for the year ended December 31, 2016, which is 37.2 percent less than Rs14.819 billion earned last year.
The earnings per share (EPS) for 2016 clocked in at Rs6.98 as against Rs11.14 in 2015. The company also announced a final cash dividend of Rs2.5/share, which is in addition to the interim dividend of Rs4.5/share already paid to the shareholders.
Analyst Humaira Akhtar in a report issued by JS Global said during the year, sales of the company declined 21 percent to Rs69.5 billion as compared to Rs85.4 billion in 2015, despite higher sales volume, owing to lower retention prices.
“Other Income; however, registered 85 percent growth to Rs8.143 billion on account of subsidy collection. Finance cost of the company declined 32 percent to Rs3.186 billion, reflecting its fast deleveraging policy.”
Cherat Cement posts profit
Cherat Cement has announced net profits of Rs1.025 billion for the half-year ended December 31, 2016, which is 51.6 percent higher than Rs676.2 million earned during the same period of the last year.
The earnings per share (EPS) for the period under review clocked in at Rs5.8 as against Rs3.83 last year.
The company also announced a cash dividend of Re1/share. Sales revenue for the half-year stood at Rs4.08 billion as compared to Rs3.489 billion in the same period of the last year.
For the quarter ended December 31, 2016, the company posted net profits of Rs620.83 million, translating into EPS of Rs3.51 as compared to the profits of Rs407.74 million and EPS of Rs2.31 during the same period of the last year.