Muslim Commercial Bank (MCB) posted a consolidated profit after tax of Rs14.96 billion. The bank declared its financial results for 1HCY21 ended June 30, 2021.
The results showed an increase of 11% YoY when compared to the net profits of Rs13.47bn recorded in the same period of last year.
Alongside financial results, the board of directors has announced an interim cash dividend for the quarter ended June 30, 2021, at Rs5 per share i.e., 50%. This is in addition to the interim cash dividend already paid at Rs4.50per share i.e. 45%.
The increase in profitability was primarily due to reversals of Rs2bn and non-funded income (NFI).
During the period under review, the bank’s interest expenses decreased by roughly 31% YoY, whereas, income came down by 22% YoY, thereby curtailing growth in the bank’s net interest income (NII) to around 12% YoY during 1HCY21 due to repricing of assets at a lower rate.
On the other hand, NFI of the bank jumped by 32% YoY to clock in at Rs11.10bn due to a 17% increase in fee and commission income, two-fold increase in dividend income coupled with capital gains of Rs534mn during 1HCY21 against the loss of Rs57mn of the corresponding period last year. However, foreign exchange income inched down by 7% YoY to Rs1.42bn.
Moreover, operating expenses went up by 5.6% YoY to stand at Rs19.7bn whereas the bank witnessed provisioning reversals of nearly Rs2bn that expanded its bottom-line.