MCB Bank Limited Declares Impressive First Quarter Results
In a recent board meeting chaired by Mian Mohammad Mansha, MCB Bank Limited (MCB) reviewed its performance for the first quarter ending March 31, 2024, and approved condensed interim financial statements. The board declared a first interim cash dividend of Rs. 9.0 per share, reflecting a robust 90% payout for the quarter.
MCB‘s Profit Before Tax (PBT) for the first quarter surged to Rs. 32.5 billion, marking a notable 41% growth, attributed to focused efforts in maintaining a no-cost deposit base and optimizing earning assets. Profit After Tax (PAT) saw a substantial increase of 27%, reaching Rs. 16.6 billion, translating to an impressive Earnings Per Share (EPS) of Rs. 13.97 compared to Rs. 11.02 reported in the same period last year.
Net interest income for the quarter rose by 27% year-on-year, driven by strong volumetric growth in average current deposits and timely repositioning within the asset book. Additionally, non-markup income surged to Rs. 9.1 billion, a remarkable 54% increase over the corresponding period last year, with significant contributions from fee commission income, income from dealing in foreign currency, and dividend income.
Despite challenges posed by a high inflationary environment and escalating commodity prices, MCB managed its operating expenses prudently, reporting expenses of Rs. 13.9 billion, an 18% increase. The bank’s cost-to-income ratio improved to 29.50% from 32.77% reported in the same period last year.
Addressing asset quality concerns, MCB demonstrated disciplined risk management through diversification of its loan book across customer segments. The Bank reported a Non-performing loan (NPLs) base of Rs. 55.4 billion as of March 31, 2024, with robust coverage and infection ratios.
Despite a nominal decrease in total assets, MCB’s total deposits crossed Rs. 1.85 trillion, while the domestic market share improved to 6.05% compared to the previous period. Return on Assets and Return on Equity improved to 2.74% and 31.54% respectively.
Maintaining compliance with regulatory requirements, MCB reported a total Capital Adequacy Ratio (CAR) of 19.62%, well above the regulatory limit. The bank’s Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) exceeded regulatory requirements.
Pakistan Credit Rating Agency reaffirmed MCB‘s credit ratings at “AAA / A1+” for long term and short term respectively. The bank continues to invest in enhancing customer experiences and expanding its digital access points.
With a network of over 1,650 branches, MCB remains one of the prime stocks traded in the Pakistani equity market, boasting the second-highest market capitalization in the industry.
