MCB Bank reports highest quarterly profit | Pakistan Today

MCB Bank reports highest quarterly profit

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 nine months period ended September 30, 2014.

From financial performance perspective, MCB Bank has created history by posting the highest ever quarterly profit before tax of Rs. 9.7 Billion crossing profit before tax of Rs. 9.4 Billion reported in the preceding quarter. On comparison with the corresponding period last year, profit before tax has shown exceptional growth of 7% which is mainly contributed by 12% increase in Net Markup Income.

On gross markup income side, the Bank recorded an increase of Rs. 8.3 Billion with major contributions from investments. This was made possible with the timely shift in concentration levels of investments coupled with extravagant growth in lending portfolio, outperforming the local industry statistics of the period under review. The interest expense registered an increase of Rs. 4.7 Billion over corresponding period last year. The significant impact of regulatory revision in minimum deposit rate was managed by strategically increasing CASA deposit base and tapering off high cost fixed deposits.

On the non-markup income front, the Bank registered significant contributions from fee income, dividend income, income from dealing in foreign currencies and other income. The administrative expense base (excluding pension fund reversal) recorded an increase of approximately 11% which consummates with increased operational and infrastructural outreach. On the NPL front, MCB Bank Limited continued with its recovery trajectory and posted a reversal in provision of Rs 1.3 Billion.

On the statement of financial position front, Bank’s total asset base was reported at Rs. 868.84 Billion which increased by a healthy 7% over December 31, 2013. Analysis of the asset mix highlights that net advances have increased by Rs. 41.3 Billion (+17%) over December 2013, whereas net investments have increased by Rs. 10.65 Billion (+2%) over December 31, 2013. NPL base of the Bank has further decreased by Rs. 0.175 Billion in the 3rd quarter, taking the overall decrease to Rs. 1.343 Billion in the nine months of 2014. Coverage ratio of the Bank was reported at 84.6% with infection ratio improving to 7.12%, primarily on account of significant increase in gross advances and corresponding decrease in NPL base. On the liabilities side, deposit base of the Bank recorded an increase of Rs. 34.0 Billion (5%) over December 2013.



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