The Pak Banker - - FRONT PAGE -

The 68th An­nual General Meet­ing of the share­hold­ers of MCB Bank Lim­ited was held Tues­day un­der the Chair­man­ship of Aftab Ah­mad Khan to dis­cuss banks per­for­mance. The Chair­man in­formed the mem­bers that the Bank con­tin­ued with its strong per­for­mance on ac­count of low cost de­posits base, im­proved qual­ity of ad­vances and sig­nif­i­cant con­tri­bu­tion from non­markup in­come.

MCB Bank re­ported profit be­fore tax (PBT) of Rs.42.333 bil­lion and profit af­ter tax (PAT) of Rs 25.551 bil­lion with an in­crease of 15 per­cent and 5 per­cent over 2014, re­spec­tively.

This was pri­mar­ily con­trib­uted by 13 per­cent in­crease in Net Markup In­come and 32 per­cent in­crease in Non-Markup In­come. Net markup in­come of the Bank was re­ported at Rs.49.322 bil­lion whereas non-markup in­come in­creased to Rs.17.115 bil­lion. The in­crease in Non-Markup In­come was due to cap­i­tal gains which in­creased by Rs2.780 bil­lion and fee & com­mis­sion in­come that in­creased by Rs1.158 bil­lion over last year.

On the gross markup in­come side, the bank recorded an in­crease of Rs. 3.263 bil­lion with ma­jor con­tri­bu­tion from in­vest­ments in­come. This growth in in­vest­ment in­come was achieved through pru­dent place­ments and timely shift in con­cen­tra­tion lev­els of in­vest­ments.

The Chair­man added that the ad­min­is­tra­tive block (ex­clud­ing pen­sion fund re­ver­sal) of the Bank reg­is­tered nom­i­nal in­crease of 8 per­cent over 2014 de­pict­ing con­tin­ued fo­cus on cost con­trol and de­ploy­ment of cost-ef­fec­tive mea­sures. On the pro­vi­sion front, the Bank sub­jec­tively down­graded few credit ex­po­sures and recorded im­pair­ment on its oil re­lated eq­uity ex­po­sures. The to­tal as­set base of MCB Bank Lim­ited was re­ported at Rs. 1.017 tril­lion sig­nal­ing a healthy growth of 9 per­cent over De­cem­ber 2014. Anal­y­sis of the as­set mix wit­nessed a 11 per­cent in­crease in In­vest­ments to Rs. 568.803 bil­lion and 3 per­cent in­crease in Gross Ad­vances to Rs. 332.627 bil­lion.

The qual­ity of as­set base reg­is­tered con­tin­u­ous im­prove­ment as NPLs of the Bank de­creased by Rs. 1.539 bil­lion dur­ing the year and closed at Rs. 20.369 bil­lion. Cov­er­age ra­tio of the Bank was re­ported at 90.83 per­cent with in­fec­tion ra­tio im­prov­ing to 6.12 per­cent as com­pared to 6.80 per­cent as at De­cem­ber 2014. On the li­a­bil­i­ties side, the Bank de­posits in­creased by 3 per­cent to Rs. 708.091 bil­lion as on De­cem­ber 31, 2015. On the de­posits mix front, cur­rent de­posits in­creased by 10 per­cent to Rs. 259.818 bil­lion im­prov­ing the CASA ra­tio to 93 per­cent as com­pared to 91 per­cent as at De­cem­ber 2014.

Earn­ings per share (EPS) for the year were de­clared at Rs. 22.96 as com­pared to Rs. 21.85 for 2014. Re­turn on As­sets and Re­turn on Eq­uity were re­ported at 2.62 per­cent and 23.25 per­cent re­spec­tively, whereas Book value per share stood at Rs. 101.44. The Chair­man fur­ther added that Pak­istan Credit Rat­ing Agency (PACRA) through its no­ti­fi­ca­tion dated June 24, 2015, has main­tained Bank's long term credit rat­ing of AAA [Triple A] and short-term credit rat­ing of A1+ [A one plus]. The au­dited fi­nan­cial state­ments of MCB Bank Lim­ited and its sub­sidiaries were adopted by the share­hold­ers at the AGM and fi­nal cash div­i­dend of 40 per­cent rec­om­mended by the Board of Direc­tors, in ad­di­tion to 120 per­cent in­terim div­i­dend al­ready paid, was ap­proved. More­over, M/s KPMG Taseer Hadi & Com­pany Char­tered Ac­coun­tants were ap­pointed as the au­di­tors of the Bank for the next fi­nan­cial year. -

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