LAHORE: The MCB Bank Limited has posted 24 per cent increase in profit before tax (PBT) which stood at Rs34.1 billion during the last nine months ended September 30.
With profit after tax of Rs. 20.2 billion, the Bank showed an increase of 12% over corresponding period last year. Increase in PBT is mainly contributed by a healthy increase in non-markup income (+41%) and Net markup income (+15%). Prime contributors in Non-markup income block were Capital Gains which increased by Rs3.1 Billion and fee & commission income that increased by Rs1.2 billion over last year.
On the gross markup income side, the Bank recorded an increase of Rs4.8 billion with major contribution from investment income. This growth in investment income was achieved through prudent placements and timely shift in concentration levels of investments.
The results were declared by the Board of Directors of MCB Bank Limited, which met under the chairmanship of Mian Mohammad Mansha to review the performance of the bank.
The BoD declared 3rd interim cash dividend of Rs4.0 per share for the period ended September 30, 2015 which is in addition to Rs8.0 per share interim dividends already paid to the shareholders. On the interest expense side, the Bank registered a decrease of Rs84 million over corresponding period last year, which is commensurate with the decreasing interest rate environment. The Bank has also strategically tapered off its high cost deposits during the period under review. The administrative expense base (excluding pension fund reversal) recorded an increase of 11% on account of increased operational and infrastructural outreach.
Effective risk management framework ensured that there was no non-performing loan accretion in the books of the Bank. Resultantly, the Bank continued with its provision reversal in the third quarter of 2015.
