The Board of Directors of MCB Bank Limited, met under the Chairmanship of Mian Mohammad Mansha, on August 01, 2018 to review the performance of the Bank and approve the financial statements for the half year ended June 30, 2018.
During the six months period ended June 30, 2018, MCB Bank Limited reported Profit Before Tax (PBT) of Rs. 16.00 billion (-9.74%) and Profit After Tax (PAT) of Rs. 9.76 billion (-28.68%).
Net interest income of the Bank improved significantly by 12.49% over corresponding period last year and was reported at Rs. 22.55 billion.
On the investment side, the average volume dropped by Rs. 88 billion with a decrease in the yield of 9bps, resulting in a decrease of Rs. 3.4 billion in investment income. On the interest expense side, the Bank registered a decrease of Rs. 756 million (-4.75%) in comparison with the same period last year.
On the administrative expenses side, the Bank reported an increase of 18.87% (excluding pension fund) over the corresponding period last year with a major increase in personnel cost, rent, depreciation, and repairs.
The total asset base of the Bank on a standalone basis was reported at Rs. 1.42 trillion reflecting an increase of 7.11% over December 31, 2017.
On the liabilities side, the deposit base of the Bank registered a significant increase of Rs. 50.26 billion (+5.19%) over December 2017 which resulted in the Bank crossing One Trillion Deposit benchmark.
The increase of Rs. 50.26 billion is net of the deposits transferred to MCB’ wholly owned subsidiary MCB Islamic Bank Limited to the tune Rs. 21.92 billion.
MCB Bank Limited continued to enjoy one of the highest CASA mixes in the banking industry of 92.90% with current deposits increasing by 6% and savings deposits by 5% over December 2017.
Earnings per share (EPS) for the half year was Rs. 8.24 as compared to Rs. 12.30 during the same period last year. Return on Assets and Return on Equity were reported at 1.42% and 14.29% respectively, whereas book value per share was reported at Rs. 115.40.
While complying with the regulatory capital requirements, the Bank has the highest cash dividend per share in the industry.
During the Second Quarter, the Bank has successfully completed the transfer of the business of 90 branches from MCB Bank Limited to a wholly owned subsidiary MCB Islamic Bank Limited.