MCB Bank announces financial performance

Staff Reporter

Lahore—The Board of Directors of MCB Bank Limited, met under the Chairmanship of Mian Mohammad Mansha, on Wednesday to review the performance of the Bank and approve the financial statements for the nine month period ended September 30, 2016. MCB Bank Limited reported a Profit Before Tax (PBT) and a Profit After Tax (PAT) of Rs29.2 billion and Rs17.4 billion respectively. Net markup income of the Bank was reported at Rs33.7 billion, down by 8.9 per cent over the corresponding period last year. On the gross markup income side, the Bank reported a decrease of Rs9.7 billion which was mainly on account of decreased yields on advances and investments in-line with interest rate movements. However, advances grew by Rs15.6 billion and investments decreased by Rs30.9 billion, on average, when compared with the corresponding period last year. On the interest bearing liabilities side, the consistent tapering of high cost deposits along with the decrease in minimum deposit rate resulted in a significant drop in cost of funds. On the non-markup income front, the Bank reported a base of Rs11.9 billion with major contributions from fees, commissions and capital gains. The administrative expense base (excluding pension fund reversal) recorded a nominal increase of 0.5 per cent over corresponding period last year. On the provision front, MCB Bank Limited posted a reversal in provision of Rs856 million in the nine month period ended September 30, 2016. The total asset base of the Bank was reported at Rs974.5 billion reflecting a decrease of 2.98 per cent over 2015. Analysis of the asset mix highlights that net investments have decreased by Rs68.5 billion (-12.12 per cent) with net advances increasing by Rs30.3 billion (+9.96 per cent) over December 31, 2015. The coverage ratio of the Bank was reported at 81.84 per cent with an infection ratio of 6.24 per cent.

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