Staff Reporter
Lahore
The Board of Directors of MCB Bank Limited (MCB) met under the Chairmanship of Mian Mohammad Mansha, on Wednesday to review the performance of the Bank and approve the condensed interim financial statements for the first quarter ended March 31, 2020. The Bank has declared first interim cash dividend of Rs. 5.0 per share for the quarter ended March 31, 2020, continuing with its highest dividend payout trend.
The BOD of MCB also deliberated on the global impact of COVID 19 pandemic and its specific implications for the banking industry in Pakistan. Being categorized as one of the essential industries, the Bank has depicted strong resolve to serve its large customer base across the country despite facing significant operational challenges.
MCB’s Profit After Tax (PAT) for the three months period ended March 31, 2020 increased by 28% to Rs. 6.519 billion.
The strategic maturity profiling of the investments based on the anticipated interest rate calls resulted in a gradual shift from shorter to longer term investments over the last 12 month period, thereby capitalizing upon the significant opportunity available.
Net interest income rose to Rs. 16.31 billion, 21% higher than the corresponding last period. Analysis of the interest earning assets highlights that income on advances increased by Rs. 1.8 billion, primarily on account of increase in yield of 176 bps.
On the investment side, gross markup income increased by Rs. 10.94 billion, due to increased average volume by Rs. 207 billion and improved yield of 312 bps. On the interest bearing liabilities side, the cost of deposits increased by 197 bps as compared to corresponding last period.
