MCB Bank President Aftab Manzoor said that a combination of factors, like improvement in loan-to-deposit ratio from average 50 percent to upper 70 percent, controlled cost of fund due to deposit mix, reduction in administrative expenses, and introduction of new products, contributed to last year's bank's growth.
While discussing the bank's performance with AAJ Markets he said that administrative expenses increased last year, but accounting policies in the adjustment of pension fund provision provided some room and net effect reduced the administrative cost.
He said that due to surge in consumer financing and new corporate sector projects, capital demand increased and the MCB Bank addressed the potential. Out of the bank's total book of Rs 188 billion, 43 percent is in corporate sector. Going forward, it would selectively address the corporate sector needs but focus would remain on power generation sector, he added.
Aftab said that the Bank's major concentration would be on SMEs sector and consumer financing. He added that the bank was planning to re-launch its credit card by July; personal loans would be launched within 2 to 3 months, and it was also building expertise in corporate advisory service, especially in power sector for the upcoming year.
He said that a branch in Afghanistan would be operational by April. Besides, representative offices in Dubai and Sri Lanka were also under consideration.
About the banking industry outlook he said that due to government policies, which would lead to some merger and acquisitions, the banking sector would continue to register strong growth, though initially some consolidation was possible.
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