MCB Bank announces performance for half year

The Board of Directors of MCB Bank Limited, met under the chairmanship of Mian Mohammad Mansha, on Wednesday to review the performance of the bank and approve the financial statements for the half year ended June 30. MCB Bank reported a Profit Before Tax (PBT) of Rs 18.9 billion and a Profit After Tax (PAT) of Rs 10.7 billion. Net markup income of the bank was reported at Rs 23.4 billion, down by 6.2 percent over the corresponding period last year.
On the gross markup income side, the bank reported a decrease of Rs 5.1 billion which was mainly on account of decreased yields on advances and investments in-line with interest rate movements. However, advances and investments grew by Rs 10.9 billion and Rs 11.2 billion on average respectively when compared with the corresponding period last year. On the interest bearing liabilities side, the consistent tapering of high cost deposits along with the decrease in minimum deposit rate resulted in a significant drop in the cost of funds.
On the non-markup income front, the Bank reported a base of Rs 6.1 billion with major contributions from fees, commissions and dividend income. The administrative expense base (excluding pension fund reversal) recorded a nominal increase of 0.2 percent over the corresponding period last year. On the provision front, MCB Bank Limited continued with its recovery trajectory and posted a reversal in provision of Rs 620 million in the six months period ended June 30, 2016.
The total asset base of the Bank was reported at Rs 1,086.4 billion presenting a growth of 8.16 percent over 2015. Analysis of the asset mix highlights that net investments have increased by Rs 32.5 billion (+5.75 percent) with net advances increasing by Rs 38.2 billion (+12.56 percent) over December 31, 2015. The coverage ratio of the Bank was reported at 86.49 percent with an infection ratio of 5.71 percent.
On the liabilities side, the deposit base of the Bank recorded an increase of Rs 58.6 billion (8.41 percent) over December 2015. MCB Bank Limited continued to enjoy one of the highest CASA mixes in the banking industry of 94 percent with current deposits increasing by 17 percent and savings deposits by 5 percent over December 2015. Return on Assets and Return on Equity were reported at 2.05 percent and 18.78 percent, respectively, whereas book value per share stood at Rs 103.23. The Board of Directors declared a 2nd interim cash dividend of Rs 4.0 per share for the half-year ended June 30, 2016, which is in addition to a Rs 4.0 per share 1st interim dividend already paid to shareholders.