MCB announces gross profit of RS24.165bn, 30 percent cash dividend

KARACHI: The Board of Directors of MCB Bank, which met with S. M. Muneer in the chair at Lahore on Tuesday, reviewed the performance of bank and approved the financial statements for the third quarter ended September 30, 2011.

MCB registered remarkable financial performance in the nine months ended September 30, 2011 as profit before and after tax increased to Rs.24.165 billion and Rs.15.515 billion respectively, increasing by 25 percent and 24 percent over the corresponding period last year.

Net Interest Income of the Bank increased by 22 percent over September 2010 with Non mark-up income increasing by a significant 32 percent to Rs.6.077 billion. On the operating expenses side, gross administrative expenses (excluding the impact of pension fund reversal) increased with a controlled growth of 13 percent over September 2010. Provisions for the period were reported at Rs.2.734 billion.

The asset base of the Bank grew to Rs.685.524 billion from Rs.567.553 billion as at year end 2010 with an increase of 21 percent. The investment portfolio increased considerably by 45 percent over December 2010 with higher concentration in risk free government securities. Advances (gross) of the Bank were reported at Rs.263.564 billion as of September 30, 2011 with a decrease of 4 percent over December 31, 2010. The classified portfolio of the Bank registered an increase of 8 percent over December 31, 2010.

The deposit base of the Bank went up by 12 percent, with 12 percent and 10 percent increase reported in current and saving deposits respectively, maintaining the CASA percentage at 81 percent.

Earnings per share (EPS) for September 30, 2011 was reported at Rs.18.55 compared to Rs.14.94for the corresponding period last year. Return on assets improved to 3.3 percent (2010: 3.13 percent) whereas return on equity improved to 28.21 percent (2010: 25.91 percent).

The Board of Directors declared cash dividend of Rs.3.0 per share for the period ended September 30, 2011 (September 30, 2010: cash dividend Rs.3.0 per share), in addition to interim cash dividends of Rs.6.0 already paid.

Copyright PPI (Pakistan Press International), 2011