The Board of Directors has met under the Chairmanship of Mian Muhammad Mansha to review the performance of the bank and approve the financial statements for the first quarter ended on March 31, 2011.
MCB registered remarkable performance in the first quarter as profit before and after tax increased to Rs 7.836 billion and Rs 5.023 billion, respectively, increasing by 25 percent and 21 percent over the corresponding quarter last year. Net Interest Income of the Bank increased by 25 percent over March 2010 with Non markup income increasing by 43 percent to Rs 2.008 billion. On the operating expenses side, gross administrative expenses (excluding the impact of pension fund reversal) increased by a controlled growth of 12 percent over March 2010, whereas provisions were reported at Rs 1.197 billion.
The asset base of the bank grew to Rs 605 billion from Rs 568 billion at year end of 2010. Advances (gross) of the bank have also shown positive signs in the last two quarters and were reported at Rs 280 billion as of March 31, 2011 with a rise of two percent over December 31, 2010. The classified portfolio of the Bank registered a nominal increase of one percent over December 31, 2010 due to the effective risk management framework adopted by the Bank. The investment portfolio increased considerably by 17 percent over December 2010 with high concentration levels in the risk free government securities.
The deposit base of the Bank went up by seven percent with eight and nine percent increase reported in current and saving deposits, respectively bringing the CASA percentage to 82 percent from 81 percent as of December 31, 2010.
NBP posts results: National Bank of Pakistan (NBP) has approved the financial statements of the bank for the three months period ended March 31. Pakistan’s economy is still showing signs of weakness with high inflation, low tax to GDP ratio, an energy shortage, rising fuel prices and low business activity are all adding pressure on business performance. The bank recorded pretax profit of Rs 6,353 million for the first quarter 2011 which is marginally higher then corresponding period last year. Earning per share stands at Rs 3.14 almost at the same level as last year. Pre-tax return on equity stands at 25.4 percent whereas pre tax return on assets is at 2.5 percent.
The bank’s net interest income increased by Rs 894 million or 8.9 percent from the corresponding period last year. Non interest markup income decreased by Rs 343 million or 8.6 percent compared to corresponding period last year mainly because of lower capital gains due to settlement of NIT Units in 2010. Commission income remained stagnant due to downward revision in commission rate on government transaction. Administrative expenses increased in line with inflation and salary increases.
Deposits register a decline of Rs 73.1 billion from December 2010. Compared to March 2010, increase in deposit is Rs 45 billion. Advances increased by Rs 7.0 billion compared to year end December 2010 mainly in corporate and agriculture sector.
