MCB posts 14% growth in earnings

KARACHI: MCB Bank Limited (MCB) unveiled its 2QCY19 ended June 30, 2019 consolidated net earnings at Rs5.41 billion (EPS Rs4.59) versus Rs4.76 billion (EPS Rs3.99) recorded during the same quarter last year, exhibiting a rise of 14%YoY in profitability, newsnreleases.com reported.

Earnings of the bank arrived in-line with estimates. Consistent with previous payouts, MCB declared interim cash dividend of Rs4.0/share, taking cumulative payout for half-year to Rs8.0/share.

Interest income of the bank rose 68%YoY to Rs34.08 billion in 2QCY19. However, interest expense also surged 125%YoY, thereby restricting expansion in bank’s net interest income (NII) to 28%YoY during the quarter.

Non-funded income (NFI) of the bank rose 7%YoY in 2QCY19 mainly due to significant accretion in forex income (+100%YoY).

However, operating expenses of the bank increased 10%YoY whereas tax expense arrived at Rs3.52 billion, with effective tax rate near 39% mark.

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