MCB Bank registers remarkable performance

MCB Bank has registered remarkable financial performance in the half year ended June 30, 2011 as its profit before and after tax increased to rupees 16.162 billion and Rs 10.571 billion respectively, increasing by 32 percent and 33 percent over the corresponding period last year.
The bank''''s earnings per share (EPS) for June 30, 2011 was reported at Rs 12.64 compared to Rs 9.50 for the corresponding period last year. The Board of Directors of the bank declared cash dividend of Rs 3.0 per share for the half-year period ended on June 30, 2011.
The Board of Directors of the bank met on July 26, 2011 at Kuala Lumpur (Malaysia) under the chairmanship of Mian Mohammad Mansha to review the performance of the bank and approve financial statements for the aforementioned period. The bank''''s net interest income increased by 26 percent over June 2010 with non-markup income increasing by 39 percent to Rs 4.153 billion.
On the operating expenses'''' side, gross administrative expenses (excluding the impact of pension fund reversal) increased with a controlled growth of 12 percent over June 2010. Provisions for the period were reported at Rs 2.439 billion. The asset base of the bank grew to Rs 630 billion from Rs 568 billion as at the year-end with an increase of 11 percent. Advances (gross) of the bank were reported at Rs 282 billion as of June 30, 2011 with a rise of 3 percent over December 31, 2010. The classified portfolio of the bank registered a nominal increase of four percent over December 31, 2010.
The investment portfolio increased considerably by 22 percent over December 2010 with high concentration levels in the risk free government securities. The deposit base of the bank went up by 15 percent, with 20 percent and 10 percent increase reported in current and saving deposits respectively, bringing the Casa percentage to 81 percent. The return on assets improved to 3.53 percent (2010: 3.13 percent) whereas return on equity improved to 28.65 percent (2010: 25.91 percent).-PR