LAHORE - The MCB Bank announced its 2013 result, posting a PAT of Rs21.5b (EPS: Rs21.24), up 4%YoY. The result came slightly below EPS expectation of Rs21.77 on account of higher operating expenses. The bank also announced a final cash dividend of Rs3.5 per share (cumulative 2013 dividend of Rs14 per share) and a bonus issue of 10%.

As expected, MCB’s NII remained under pressure and declined by 7%YoY to Rs37.9b in 2013. Similarly, operating expenses also grew by 9%YoY to Rs19.6b which dented the profitability. However, support came in from (1) higher non-interest income of Rs11.2bn (capital gains booked on sale of ULEVER) and (2) better than anticipated reversals in provisions in write offs to the tune of Rs2.8bn.