MCB Bank’s profit drops

KARACHI: MCB Bank’s (MCB) profit was down 4.0 percent to Rs5.929 billion for the quarter ended March 31, translating into earnings per share (EPS) of Rs5.30.

The Bank recorded profit of Rs6.148 billion with EPS of Rs5.5 in the same quarter a year earlier.

MCB announced interim cash dividend of Rs4.0/share.

The earnings came in line with market expectations.

The bank’s net interest income declined 14 percent to Rs9.98 billion in the quarter under review as compared to Rs11.604 billion a year ago.

“Net Interest income of the bank fell during the quarter, which is attributable to across-the-board decline in various asset classes,” said Ibad-ur-Rehman, an analyst at Elixir Securities.

Bank’s non-interest income surged a massive 68 percent to Rs5.148 billion during the quarter under review as against Rs3.054 billion a year earlier.

“Apart from significantly high capital gains, core fee income expanded, while the bank also booked provision reversals of Rs878 million during the period,” Rehman added.

ABL’s profit down 

Allied Bank Limited’s (ABL) profit fell 22.9 percent to Rs3.672 billion for the quarter ended March 31, translating into earnings per share (EPS) of Rs3.21. 

The Bank recorded profit Rs4.815 billion in the same quarter last year, translating into EPS of Rs4.21.

ABL declared first interim dividend of Rs1.75/share.

The net interest income for the period under review increased 2.06 percent to Rs8.394 billion as compared to Rs8.224 billion in the corresponding period last year.

“We cite limited growth in loan book coupled with declining investment yields as the main reasons for declining interest income,” said Fawad Basir, an analyst at Arif Habib Limited.

Total non-interest income sharply fell 42.5 percent to Rs2.248 billion in the January-March period as against Rs3.911 billion a year ago.

Engro’s profit falls

Engro Corporation Limited’s (Engro) profit fell 4.24 percent to Rs4.218 billion for the quarter ended March 31, translating into earnings per share (EPS) of Rs5.42.

Engro registered profit of Rs4.405 billion in the same quarter last year and EPS of Rs7.05 last year.

The company declared an interim cash dividend of Rs5.0/share. Earnings came in line with the market expectations. 

The sales revenue dropped 33 percent year-on-year to Rs22.499 billion in the quarter under review.

Analyst Amreen Soorani at JS global said sales fell as the company’s key fertiliser segment, Engro Fertilizer, posted 20 percent lower sales during the three months.

“Nonetheless, gross margins remained intact at 30 percent,” Soorani said. “Company’s operational efficiencies witnessed improvement with lower selling expenses, while finance costs also declined 6.0 percent.”

Fauji Fertilizer posts profit

Fauji Fertilizer Company’s (FFC) profit rose 53 percent to Rs1.175 billion for the quarter ended March 31, translating into earnings per share (EPS) of Rs0.92.   

Fauji Fertilizer recorded profit of Rs769.415 million in the same quarter last year with EPS of Rs0.6.

The FFC also declared interim cash dividend of Rs1.5/share. The earnings came in line with the market expectations.

The company’s revenue stood at Rs11.563 billion during the period under review as compared to Rs11.96 billion a year earlier.

“Sales decline is attributable predominantly to 2.0 percent lower urea off-take coupled with weak urea prices,” said Tahir Abbas, an analyst at Arif Habib Limited.

Financial charges decreased 5.0 percent to Rs746.816 million, while other income surged to Rs1.75 billion, primarily aided by cash subsidy on urea and diammonium phosphate.

Meezan Bank’s profit up

Profit of Meezan Bank increased to Rs1.512 billion for the quarter ended March 31 from Rs1.337 billion in the same period a year ago.

The Bank recorded earnings per share of Rs1.51 for January-March.

Meezan Bank continued to enhance its financing exposure in all sectors, while ensuring that all risk parameters are met, said

a statement.

The bank’s fee and commission income grew 68 percent in the quarter over the last year, while the trade business volume of Rs165 billion was higher 37 percent year-on-year.

The JCR-VIS Credit Rating Company Limited, an affiliate of Japan Credit Rating Agency, Japan reaffirmed the bank’s long-term entity rating of AA and short-term rating at A1+ with

stable outlook. The short-term rating of A1+ is the highest standard in short-term rating. 

Kohat Cement’s profit dips

Kohat Cement Company’s profit fell 24 percent to Rs931.269 million for the quarter ended March 31, translating into earnings per share (EPS) of Rs6.03.

Kohat Cement recorded profit of Rs1.225 billion in the same quarter last year with EPS of Rs7.93.

The earnings came in slightly below the market expectations and the company did not announce any payout.

The sales amounted to Rs3.493 billion during the period under review as compared to Rs3.52 billion a year earlier.

“Variation in the results was in the backdrop of decline in revenue and increasing input costs,” said Karim Punjani, an analyst at Elixir Securities.