MCB Bank Limited’s (MCB) profit after tax (PAT) posted a growth of 140 percent to reach Rs. 26.69 billion for the half year ended June 30, 2023.
The Board of Directors of MCB Bank Limited (MCB) in its meeting under the Chairmanship of Mian Mohammad Mansha, today, reviewed performance of the bank and approved the condensed interim financial statements for the half year ended June 30, 2023.
The Board of Directors has declared 2nd interim cash dividend of Rs. 7.0 per share i.e. 70 percent, in addition to 60 percent already paid, bringing the total cash dividend for the half year ended June 30, 2023 to 130 percent.
MCB achieved substantial growth in core earnings, resulting in a 65 percent year-on-year increase in profit before tax (PBT) for the half-year ending on June 30, 2023, reaching Rs. 53.84 billion. Profit after tax stood at Rs. 26.69 billion, translating into Earning Per Share (EPS) of Rs. 22.52 compared to EPS of Rs. 9.39 reported in corresponding period last year.
On the back of strong volumetric growth in current account and timely repositioning of the asset book, net interest income for the period under review increased by 72 percent over corresponding period last year. YoY average current deposits of the bank registered a growth of Rs. 196 billion (+32 percent).
Non-markup income increased to Rs. 14.1 billion (+9 percent) against Rs. 12.9 billion in the corresponding period last year with major contributions coming in from fee commission income (Rs. 8.8 billion), income from dealing in foreign currency (Rs. 3.6 billion) and dividend income (Rs. 1.5 billion).
The bank continues to manage an efficient operating expense base and manage costs prudently. Amidst a persistently high inflationary environment, impact of sharp currency devaluation, rapidly escalating commodity prices and continued investments in human resources and technological upgradation, the operating expenses of the bank were reported at Rs. 24 billion (+23 percent). The cost to income ratio of the bank improved significantly to 29.58 percent from 37.46 percent reported in corresponding period last year.
On the financial position side, the total asset base of the bank grew by 9 percent and was reported at Rs. 2.28 trillion. Analysis of the assets mix highlights that net investments increased by Rs. 169.6 billion (+17 percent) whereas gross advances reported a decrease of Rs. 154.5 billion (-19 percent) over December 31, 2022.
The bank continued its focus on building no cost deposits, leading to a growth of Rs. 196 billion (YoY: +32 percent) in average current deposits. The average current to total deposits ratio improved to 52.3 percent during the period under review from 41.1 percent in corresponding period last year. Despite the exceptional increase in interest rates during the period, the domestic cost of deposits was contained at 7.93 percent as compared to 5.48 percent in the corresponding period last year.
Return on Assets and Return on Equity significantly improved to 2.45 percent and 29.59 percent respectively, whereas the book value per share was reported at Rs. 160.24.
