Mcb Bank continues to declare highest dividend per share as of 9m’ 2021

LAHORE: The Board of Directors of MCB Bank Limited (MCB) in its meeting under the chairmanship of Mian Mohammad Mansha, on October 27, reviewed the performance of the bank and approved the condensed interim financial statements for the nine months period ended September 30, 2021. Continuing with its highest payout trend, the bank announced a dividend of Rs4.50 per share for the July-september quarter. The latest announcement took the total payout so far in 2021 to Rs14 per share. The average policy rate registered a decline of 258 basis points to 7.01pc in the period under review. “However, on account of historic growth in average current deposits, the net interest income of the bank decreased only 14pc to Rs47.74bn,” it said. During the nine months period ended September 30, 2021, MCB Bank Limited reported Profit Before Tax (PBT) of Rs38.27 billion and Profit After Tax (PAT) of Rs22.56 billion. Earnings’ Per Share (EPS) stood at Rs19.03 against an EPS of Rs19.35 reported in the corresponding period last year. The State Bank of Pakistan continued with its expansionary monetary policy stance during the major part of the period in order to combat the downside risks emanating from COVID-19 outbreak. Average Policy rate registered a decline of 27% (258bps) from an average of 9.59% in corresponding period last year to 7.01% in current period under review. Return on Assets and Return on Equity reported at 1.63% and 18.86% respectively, whereas the book value per share was reported at Rs132.09. While complying with the regulatory capital requirements, the bank’s total Capital Adequacy Ratio (CAR) is 19.00% against the requirement of 11.5% (including capital conservation buffer of 1.50% as reduced under the BPRD Circular Letter No. 12 of 2020). Quality of the capital is evident from Bank’s Common Equity Tier-1 (CET1) to total risk weighted assets ratio which comes to 16.08% against the requirement of 6%. The bank’s capitalization also resulted in a Leverage Ratio of 6% which is well above the regulatory limit of 3.0%. The Bank reported Liquidity Coverage Ratio (LCR) of 247.94% and Net Stable Funding Ratio (NSFR) of 189.19% against requirement of 100%. The bank’s exceptional performance has also been recognized by the globally coveted Finance Asia’s Country Awards where it has declared MCB Bank as the “Best Bank in Pakistan” in 2021.