The Board of Directors of MCB Bank Limited, met under the Chairmanship of Mian Mohammad Mansha, on August 11, 2015 to review the performance of the Bank and approve the financial statements for the half year ended June 30, 2015.
MCB Bank has created history by posting the highest ever quarterly profit whilst maintaining a healthy growth in its asset base. The Bank maintained its lead with highest CASA base, consistent improvement in quality of assets and recorded the highest return on assets.
The Bank registered an increase of 34% in profit before tax which stood at Rs. 23.7 Billion and 15% in profit after tax of Rs. 13.5 Billion over comparative period last year. Increase in PBT was mainly driven by 73% increase in non-markup income and 16% increase in Net Markup Income. The Bank recorded an increase of Rs. 3.9 Billion in gross markup income with major contribution from investment income (17%+). The positive results are a depiction of the proactive approach adopted by MCB Bank Limited for timely placements and concentration shifts based on anticipated interest rate movement.
On the interest expense side, the higher CASA base led to a decrease in cost of deposits by 88 bps in June 2015 as compared to corresponding period last year. On the borrowings front, the increased volume leveraged the spread available in the money market, resulting in increase of Rs. 470 Million over June 30, 2014. On the non-markup income front, the Bank registered increase in gain on sale of securities (364%+), fee income (28%+)dividend income (37%+) and other income (378%+).
The administrative expenses (excluding pension fund reversal) recorded an increase of 11% on the basis of increased operational and infrastructural outreach. MCB Bank continued to focus on recoveries and posted a healthy reversal in provision of Rs. 740 Million.
The asset base of the Bank was reported at Rs. 1,083.4 Billion as on June 30, 2015 representing a growth of 16% over December 31, 2014. This increase is mainly contributed by 23% increase in investment and 4% increase in net advances. NPL base of the Bank decreased by Rs. 707 Million and closed at Rs. 21.2 Billion. Coverage ratio of the Bank was reported at 84.98% with infection ratio improving to 6.36%. The deposits of MCB Bank Limited were reported at Rs. 765.8 Billion, registering an increase of 11% from Rs. 688.330 Billion as at December 31, 2014. The Bank improved its deposit mix with current accounts growing by 28% to Rs. 303.4 Billion, whilst improving CASA ratio to an all-time high of 92.95% as on June 30, 2015 as against 90.96% as on December 31, 2014. Return on Assets and Return on Equity of the Bank were reported at 2.68% and 24.92% respectively, whereas book value per share improved to Rs. 99.21.
The Board of Directors declared 2nd interim cash dividend of Rs. 4 per share for the period ended June 30, 2015 which is in addition to the interim dividend of Rs. 4 per share already paid to the shareholders.
