PR Lahore - The Board of Directors of MCB Bank Limited, met under the Chairmanship of Mian Mohammad Mansha, on August 10, 2016 to review the performance of the Bank and approve the financial statements for the half year ended June 30, 2016.

MCB Bank Limited reported a Profit Before Tax (PBT) of Rs. 18.9 billion and a Profit After Tax (PAT) of Rs. 10.7 billion. Net markup income of the Bank was reported at Rs. 23.4 billion, down by 6.2% over corresponding period last year. On the gross markup income side, the Bank reported a decrease of Rs. 5.1 billion which was mainly on account of decreased yields on advances and investments in-line with interest rate movements. However, advances and investments grew by Rs. 10.9 billion and Rs. 11.2 billion on average respectively 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 Rs. 6.1 billion with major contributions from fees, commissions and dividend income.

The administrative expense base (excluding pension fund reversal) recorded a nominal increase of 0.2% over the corresponding period last year.

On the provision front, MCB Bank Limited continued with its recovery trajectory and posted a reversal in provision of Rs. 620 million in the six months period ended June 30, 2016.

The total asset base of the Bank was reported at Rs. 1,086.4 billion presenting a growth of 8.16% over 2015. Analysis of the asset mix highlights that net investments have increased by Rs. 32.5 billion (+5.75%) with net advances increasing by Rs. 38.2 billion (+12.56%) over December 31, 2015. The coverage ratio of the Bank was reported at 86.49% with an infection ratio of 5.71%.

On the liabilities side, the deposit base of the Bank recorded an increase of Rs. 58.6 billion (8.41%) over December 2015. MCB Bank Limited continued to enjoy one of the highest CASA mixes in the banking industry of 94% with current deposits increasing by 17% and savings deposits by 5% over December 2015. Return on Assets and Return on Equity were reported at 2.05% and 18.78% respectively, whereas book value per share stood at Rs. 103.23.

The Board of Directors declared a 2nd interim cash dividend of Rs. 4.0 per share for the half year ended June 30, 2016 which is in addition to a Rs. 4.0 per share 1st interim dividend already paid to shareholders.