Why did Bank Mellat profit decrease? / What is the debt of Webmelt?

According to Tejarat News, Bank Mellat recently published its six-month performance report, which was accompanied by a lot of margins. This issue caused the bank, in addition to amending its 6-month financial statement, to publish a transparency report in Kedal.

According to the six-month financial statements published in Kedal, in the first half of this year, WebMelt had a total income of 30,000 billion Tomans from the facilities granted and deposits and bonds, of which more than 15,000 billion Tomans was spent on interest on deposits. With the deduction of 11,000 billion tomans of administrative and public expenses and other expenses, the net profit of the bank’s operations has reached 3,000 billion tomans, which has decreased by 56 percent compared to the same period last year. With this account, the net profit per share of Bank Mellat in the first six months has been recorded at 147 Rials.

Webmelt cash balance in this period was 26 thousand billion tomans, which is 8.5 percent less than in the first half of last year. The total debt of this bank until the end of September was 810 thousand billion tomans, which is 14% more than last year.

However, Bank Mellat has commented on a significant reduction in its profits. The bank said the main reason for the decline was not to change the exchange rate. The bank says that the exchange rate increased from 9 thousand tomans at the end of 1398 to 11 thousand tomans at the end of September 1399, which led to a profit of 10 thousand and 400 billion tomans in the financial statement of September 99.

On the other hand, according to paragraph 4 of the independent auditor’s report on the annual financial statement 99, this bank is facing a reserve deficit of 27 thousand billion Tomans and in order to adjust this paragraph, the amount of 3,580 billion Tomans of actuarial cost has been considered.

With these interpretations, the bank claims that if the foreign exchange earnings were removed from last year’s report, the bank’s earnings per share would be only 48 rials, which was much less than the 147 rials earnings in the first six months of this year. Therefore, Bank Mellat says that with constant conditions, its net profit has almost tripled in the first half of this year.

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