MCB Profits Down, Bank Decides to Merge 90 Branches with NIB
Posted by JEHANGIR NASIR
MCB Bank posted a net profit of Rs 5.44 billion in Jul-Sep 17, which is down 18.93% as compared to Rs 6.71 billion from the same three-month period of last year which was mainly driven by lower capital gains.
Capital gains stood at just Rs 859 million as compared to Rs 3.4 billion. Non interest income of the bank was down by 24% YoY.
The bank announced earnings per share of Rs 4.62 in its quarterly earnings as compared to Rs 6.03 in the same period last year, which was in line with market expectations. MCB Bank also announced a cash dividend of Rs 4 per share.
The merger between MCB and NIB was completed during Q32017 and the financial reports were prepared accordingly.
MCB booked provision reversals of Rs 540 million in third quarter versus 238 million in the same period last year.
Non mark up expense surged to Rs 8.4 billion in the third quarter as NIB’s merger with MCB lifted bank’s overall expense.
MCB Bank Ltd’s net mark-up/interest income for the period clocked in at Rs 31.45 billion decreasing by 6.7% from last year’s net income value of Rs. 33.71 billion
For the first nine months of 2017, bank’s total non-mark-up/interest expenses witnessed a significant increase of around 23% during the last reported nine months taking away a total of Rs 21.2 billion from the bottom line. Bottom line profits reached Rs 19.13 billion, up 9.8% against Rs 17.42 billion last year
MCB’s script at the bourse was closed at Rs 214 or + 0.66% with a turnover of 641,700 shares on Wednesday.
MCB Announces Demerger of 90 branches, Amalgamation into MIB
In a notification sent to the bourse on Wednesday, Muslim Commercial Bank (MCB) announced the demerger of ninety of its branches and merging them into MCB Islamic Bank Limited (MIB).
The notification read that in-line with the Board of Directors meeting on October 25th, it has decided to approve a Scheme of Compromises, Arrangement and Reconstruction under Section 279 to 283 and 285 of the Companies Act 2017, whereby existing 90 branches of MCB will be demerged and amalgamated into MIB on the effective date against payment of cash consideration.
This deal is contingent to approval from MCB/MIBs shareholders and the State Bank of Pakistan (SBP), read the notification.
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