MCB de­liv­ers ex­cep­tional per­for­mance in fi­nan­cial year 2013

The Pak Banker - - FRONT PAGE -

STAFF RE­PORTER

The 66th An­nual Gen­eral Meet­ing of the share­hold­ers of MCB Bank Limited was held here at lo­cal ho­tel un­der the chair­man­ship of Aftab Ah­mad Khan, Di­rec­tor, MCB Bank Ltd, to trans­act the or­di­nary and spe­cial businesses of the Bank.

The Chair­man in­formed the mem­bers that de­spite chal­leng­ing op­er­at­ing en­vi­ron­ment, MCB de­liv­ered ex­cep­tional per­for­mance and growth in the fi­nan­cial year 2013. The Bank re­ported profit be­fore tax of Rs 32.288 bil­lion and profit af­ter tax of Rs. 21.495 bil­lion with an in­crease of 2% and 4% over re­stated profit of 2012, re­spec­tively. Net markup in­come of the Bank was re­ported at Rs. 37.868 bil­lion whereas non-markup in­come in­creased to Rs. 11.171 bil­lion. The in­crease in non-markup in­come was pri­mar­ily con­trib­uted by 158% growth in cap­i­tal gains and 14% growth in fee, com­mis­sion and bro­ker­age in­come block.

On the net markup in­come side, the vo­latil­ity in mon­e­tary pol­icy rate cou­pled with the in­crease in min­i­mum de­posit rate was man­aged through as­set ma­tu­rity pro­fil­ing and con­tin­u­ous im­prove­ment in the de­posit mix.

The Chair­man added that the ad­min­is­tra­tive block (ex­clud­ing pen­sion fund re­ver­sal) of the Bank reg­is­tered low­est in­crease in peer banks of 5% over 2012, which con­sid­er­ing the in­fla­tion­ary surge ob­served in the sec­ond half of the year, de­picts re­sults of cost-ef­fec­tive syn­er­gies achieved by the Bank.

With ref­er­ence to non-per­form­ing loans, the Bank reg­is­tered high­est re­cov­ery in the bank­ing in­dus­try with pro­vi­sion re­ver­sals to the tune of Rs. 2.8 bil- lion for the year ended De­cem­ber 31, 2013. The re­ver­sal was pri­mar­ily on ac­count of strength­ened risk man­age­ment frame­work and rig­or­ous ef­forts posted by the re­cov­ery units.

As per the State­ment of Fi­nan­cial Po­si­tion, the as­set base of the Bank achieved new highs of Rs. 815.508 bil­lion grow­ing by 6% over De­cem­ber 2012. The anal­y­sis of the as­set mix high­lights 12% in­crease in in­vest­ments to Rs. 449.006 bil­lion and 2% in­crease in gross ad­vances to Rs. 268.192 bil­lion. The qual­ity of as­sets saw con­sid­er­able im­prove­ment as the non-per­form­ing loans of the Bank con­tracted by 9% to Rs. 23.268 bil­lion. On the li­a­bil­i­ties side, the de­posit base of the Bank grew by 16% and was re­ported at Rs. 632.330 bil­lion. MCB Bank Limited con­tin­ued to en­joy the high­est CASA mix in the bank­ing in­dus­try, which im­proved con­sid­er­ably to ap­prox­i­mately 90% as com­pared to 85% re­ported last year. Earn­ings per share (EPS) for the year came to Rs. 21.24 as com­pared to Rs. 20.42 for 2012.

MCB main­tained the high­est re­turn on as­sets in bank­ing in­dus­try of 2.72% dur­ing 2013 whereas re­turn on eq­uity was re­ported at 23.09%.

Ac­knowl­edg­ing the in­vestor con­fi­dence in the in­sti­tu­tion, the Chair­man spec­i­fied that MCB was the pre­ferred stock on the stock ex­changes with high­est mar­ket cap­i­tal­iza­tion in the in­dus­try. MCB's stock price grew from Rs 209.76 at 31st De­cem­ber 2012 to Rs 281.17 at 31st De­cem­ber 2013, rep­re­sent­ing an in­crease of 34%. The Chair­man fur­ther added that Pak­istan Credit Rat­ing Agency (PACRA) through its no­ti­fi­ca­tion dated Fe­bru­ary 04, 2013, has up­graded Bank's long term credit rat­ing from AA+ [dou­ble A plus] to AAA [Triple A] and main­tained short-term credit rat­ing of A1+ [A one plus].

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