LAHORE (PR) - MCB Bank Ltd registered profit before tax of Rs. 25.748 billion with an increase of 2pc and profit after tax of Rs. 17.182 billion with an increase of 4pc over September 30, 2012. The growth in profitability numbers is reflective of the underlying financial strength of the Bank in demanding operating environment.
The Board of Directors of MCB Bank Ltd met under the Chairmanship of Mian Mohammad Mansha, on October 24, 2013 to review the performance of the Bank and approve the financial statements for the period ended September 30, 2013.
The gross markup income decreased by 7pc over corresponding period last year that was offset by the lower cost of funds on strategically managed CASA base. The Bank focused on improving its non-markup income and registered a growth of 23pc over the corresponding period last year.
On the operating expense side, the Bank reported a meager increase of 1pc in its administrative expense block. This was primarily on the back of synergies attained through centralization and annual capping for heads of expenses.
The reversal in provision charge is reflective of the prudent and aggressive provisioning strategy coupled with the refined risk management framework adopted by the Bank in the past for subjective downgrades. A massive recovery was reported in the loss categorized loans that enabled the bank to reverse the specific provisions held in respect of such loans.
MCB Bank’s total asset base was reported at Rs 746.525 billion that decreased by 3pc over December 31, 2012.  Net investments increased by Rs. 3.002 billion to Rs. 405.071 billion whereas gross advances were reported at Rs. 245.257 billion.  The NPL base of the Bank further contracted by Rs. 626 million in the nine months period ended September 30, 2013. On the liabilities side, the deposit base of Bank registered an increase of 39 billion, translating into 7% over December 31, 2012. The Bank continued with its strategy of shifting its base to low cost current and savings accounts, each growing by 11% and 13% respectively over December 31, 2012 and taking the total CASA base to an all-time high of 89%. The fixed deposit base of the Bank saw a significant reduction of 18% in the quarter ended September 30, 2013 to compliment the strategic shift to low cost deposits.
Earnings per share (EPS) for the period came to Rs. 16.98 compared to Rs. 16.36 for September 30, 2012. Return on assets improved to 3.03% and return on equity came to 24.70% with book value per share improving to Rs. 95.49.
The Board of Directors declared cash dividend of Rs. 3.5 per share for the period ended September 30, 2013, in addition to interim cash dividend of Rs. 7 per share already paid.