MCB Bank Q42024 earnings down 38pc

KARACHI: MCB Bank Limited (MCB) announced its Q42024 result on Thursday, where the bank recorded consolidated earnings of Rs10.5 billion (EPS of Rs8.87), down 38 per cent year-on-year (YoY) and 42 per cent quarter-on-quarter (QoQ). “The result came in line with industry expectations,” said analyst Sunny Kumar at Topline Securities.

This takes full year 2024 earnings to Rs63.2 billion (EPS of Rs53.35), down 3.0 per cent YoY. Alongside result, the bank also announced a final cash dividend of Rs9 per share, taking 2024’s dividend to Rs36 per share.

“MCB recorded a provision expense of Rs4 billion in Q42024, which was higher than our expectations. This expense was offset by a Rs3.3 billion gain booked on securities in Q42024,” he said.

Net interest income (NII) for Q42024 settled at Rs39 billion down 15 per cent YoY and 12 per cent QoQ due to decline in asset yields. Non-interest income of the bank grew by 11 per cent YoY to Rs12 billion in Q42024, primarily driven by gain on securities which clocked in at Rs3.3 billion in Q42024. MCB’s fees and commission income clocked in at Rs6.07 billion, down 8.0 per cent YoY, and foreign exchange income declined 36 per cent YoY to Rs1.8 billion in Q42024.

“Non interest expense increased 20 per cent YoY and 9.0 percent QoQ, which was driven by inflationary pressures, we believe,” the analyst said. MCB’s cost to income ratio jumped to 41 per cent in Q42024 as compared to 31 per cent in Q42023 and 35 per cent in Q32024. Effective tax rate of bank clocked in at 61 per cent in Q42024 and 58 per cent in Q42023 and 49 per cent in Q32024.