MCB Bank’s Q1 profit surges to Rs17.854 billion

KARACHI: MCB Bank Limited (MCB) on Wednesday reported a 28 percent increase in its first-quarter net profit, due to an increase in interest earned income.

In a statement to the Pakistan Stock Exchange, the bank reported a net profit of Rs17.854 billion for the quarter that ended March 31, up from Rs13.979 billion during the same period the previous year.

The bank also announced an interim cash dividend of Rs9.00 a share. Earnings per share came in at Rs15.04, compared with Rs11.75 a share last year.The bank said its interest earned income for the quarter rose to Rs100.641 billion, compared with Rs70.233 billion during the same quarter a year earlier. Interest expensed income also remained higher at Rs58.193 billion from Rs37.191 billion a year ago.

The bank in a statement said its profit before tax for the first quarter of 2024 increased to Rs32.5 billion with an impressive growth of 41 percent. "On the back of strong volumetric growth in average current deposits (+13 percent on a year-on-year basis) and timely repositioning within the asset book, net interest income for 1Q’24 increased by 27 percent over corresponding period last year."

it said that non-markup income increased to Rs9.1 billion (+54 percent) against Rs5.9 billion in the corresponding period last year. Trade and guarantee related business income grew by 100 percent, cards related income by 48 percent, branch banking customer fees by 17 percent and income from home remittance by 55 percent.

Operating expenses of the bank were reported at Rs13.9 billion, up 18 percent). The cost to income ratio of the bank improved to 29.50 percent from 32.77 percent reported in the corresponding period last year.

The Non-performing loan (NPLs) base of the bank was reported at Rs55.4 billion as at March 31, 2024. The coverage and infection ratios of the Bank were reported at 92.67 percent and 8.56 percent respectively.Grossadvances have increased by Rs39 billion and Rs25 billion over December 31, 2023 respectively whereas lending to financial institutions decreased by Rs46 billion.

The bank’s total deposits crossed Rs1.85 trillion while the domestic market share improved to 6.05 percent compared to 5.92 percent as at December 31, 2023. The domestic cost of deposits was contained at 10.70 percent as compared to 7.15 percent in the corresponding period of last year despite the significant increase in average policy rate during the period.

"During the period under review, MCB attracted home remittance inflows of $892 million ( up 13 percent) to consolidate its position as an active participant in SBP’s cause for improving flow of remittances into the country through banking channels."

Bank Al-Falah’s Q1 net profit dips amid tax surge

Bank Al-Falah Limited (BAFL) reported a slight dip in net profit for the first quarter, attributing the 7.80 percent decrease to a significant rise in taxes, according to a statement released to the Pakistan Stock Exchange on Wednesday.

The bank's net profit for the quarter ending March 31 was Rs9.927 billion, a fall from Rs10.770 billion in the corresponding period last year. Despite the decline, Bank Al-Falah declared an interim cash dividend of Rs2.0 per share.

Earnings per share (EPS) were reported at Rs6.31, down from RS6.83 per share year-on-year.

The financial statement highlighted a robust increase in interest income, which soared to Rs128.652 billion from Rs75.600 billion in the same quarter of the previous year. Conversely, interest expenses also surged to Rs97.785 billion, up from Rs27.913 billion.

The higher tax bill, which rose to Rs9.886 billion from Rs8.258 billion, was noted as a key factor impacting the bank's profit margins for the quarter.

The bank’s non-markup Income (NMI) also rose by 19.51 percent year-on-year to Rs8.08 billion, owing to a significant rise in fee and commission income, foreign exchange income, and gain from derivatives to clock in at Rs4.53 billion, Rs2.3 billion and Rs297.55 million, respectively.

On the expense side, the total non-interest expenses increased by 26.71 percent year-on-year to Rs19.16 billion in 3QFY24 compared to Rs15.12 billion in 3QFY23.

The increase was attributed to the massive jump of 25.92 percent year-on-year in operating expenses from Rs14.71 billion in 3QFY23 to Rs18.52 billion in 3QFY24.

ABL’s first-quarter profit jumps 51pc to Rs11.6 billion

Allied Bank Limited (ABL) announced a robust 51 percent increase in its first-quarter net profit, driven by a surge in interest earned income.

In a statement released to the Pakistan Stock Exchange, the bank reported a net profit of Rs11.606 billion for the quarter ending March 31, 2024, compared to Rs7.684 billion during the same period last year.

The bank also announced an interim cash dividend of Rs4.0 a share. Earnings per share came in at Rs10.14, compared with Rs6.71 a share last year.

The bank said its interest earned income for the quarter rose to Rs94.326 billion, compared with Rs73.971 billion during the same quarter a year earlier. Interest expensed income also remained higher at Rs65.176 billion from Rs53.533 billion a year ago.

On the other hand, the bank’s total non-markup income recorded a drop of 4.31 percent year-on-year to Rs6.77 billion. The decline is attributed to a major drop in foreign exchange income that clocked in at Rs1.27 billion in 3QFY24, down 60.78 percent year-on-year.