The Board of Directors of MCB Bank Limited met under the chairmanship of Mian Mohammad Mansha on Tuesday to review the performance of the Bank and approve the financial statements for the three months period ended March 31, 2015.
From financial performance perspective, MCB Bank has created history by posting the highest ever quarterly profit before tax of Rs 11.9 billion and profit after tax of Rs 7.9 billion. In comparison with the corresponding period last year, profit before tax has shown exceptional growth of 42% which is mainly contributed by 91% increase in non-markup income and 20% increase in net markup income. On gross markup income side, the Bank recorded an increase of Rs 2.7 billion with major contributions from investments amounting to Rs 1.8 billion with growth of 16% and from advances amounting to Rs 932 million presenting a growth of 14%. This was made possible with the prudent placements and timely shift in concentration levels of investments.
The interest expense registered an increase of Rs 704 million over corresponding period last year mainly due to higher Repo borrowings. On the non-markup income front, the Bank registered significant growth from gain on sale of securities (864%), fee income (23%), dividend income (29%), and other income (28%).
The administrative expense base (excluding pension fund reversal) recorded an increase of 11% which consummates with increased operational and infrastructural outreach. On the non-performing loan front, MCB Bank Limited continued with its recovery trajectory and posted a reversal in provision of Rs 266 million.
On the statement of financial position front, the total asset base of the Bank crossed the one trillion mark and was reported at Rs 1,012.6 billion presenting a healthy growth of 8% over Dec 2014. Analysis of the asset mix highlights that net investments have increased by Rs 74.8 Billion (+15%) over December 31, 2014. NPL base of the Bank has decreased by Rs. 224 Million in period under review. Coverage ratio of the Bank was reported at 85.36% with infection ratio improving to 6.73%. On the liabilities side, deposit base of the Bank recorded an increase of Rs. 47.8 Billion (7%) over December 2014.
MCB Bank Limited continued to enjoy the highest CASA mix in the banking industry of 91% with current deposits increasing by 10% and savings deposits by 6% over December 2014. Return on assets and return on equity improved to 3.25% and 29.13% respectively whereas book value per share stood at Rs 99.19. The Board of Directors declared first interim cash dividend of Rs 4.0 per share for the period ended March 31, 2015.