F.P. Report
KARACHI: The Board of Directors of MCB Bank Limited met under the Chairmanship of Mian Mohammad Mansha, on Wednesday to review the performance of the Bank and approve the financial statements for the three months period ended March 31, 2018.
During the three months period, MCB Bank Limited reported Profit Before Tax (PBT) of Rs. 7.31 billion and Profit After Tax (PAT) of Rs. 4.78 billion. In comparison with the corresponding period last year, Profit Before Tax has decreased by 22.9% whereas Profit After Tax has decreased by 22.3%, primarily on account of one off charge of pension related expense amounting to Rs. 2.03 billion, in compliance with the Honorable Supreme Court’s order, raising minimum pension to Rs. 8,000/= per month.
Net markup income of the Bank was reported at Rs. 11.00 billion, with a significant increase of 12.97% over corresponding period last year. On the gross markup income side, the Bank reported an increase of Rs. 940 million (+5.44%) whereas on the interest expense side, the Bank registered a decrease of Rs. 323 million (-4.28%) in comparison with the same period last year. To supplement its net interest margins, the Bank remained focused on increasing its low cost deposit base and ventured in higher yielding assets.
On the non-markup income front, the Bank reported a base of Rs. 4.3 billion with a decrease of 17.09% over corresponding period last year. Major contributions to non-markup income were operational in nature with fees & commissions increasing by Rs. 426 million (+19.39%) and income from dealing in foreign currencies increasing by Rs. 138 million (+48.65%). Capital gains for the first quarter were reported at Rs. 780 million as compared to Rs. 2,243 million reported for corresponding period last year.
The administrative expense base recorded an increase of 16.78% over corresponding period last year on account of merger. On the provision against advances front, the Bank continued with its recovery trajectory and posted a reversal of Rs. 314 million with Rs. 416 million reversals in provision against investments.
The total asset base of the Bank on a standalone basis was reported at Rs. 1.29 trillion reflecting a decrease of 2.55% over December 2017. Analysis of the assets mix highlights that net investments have decreased by Rs. 55.77 billion (-8.49%) with net advances decreasing by a nominal amount of Rs. 847 million (-0.18%) over December 31, 2017. The coverage and infection ratios of the Bank were reported at 93.72% and 9.41% respectively.
On the liabilities side, the deposit base of the Bank registered a significant increase of Rs. 36.54 billion (+3.77%) over December 2017. MCB Bank Limited continued to enjoy one of the highest CASA mixes in the banking industry of 92.68% with current deposits increasing by 5% and savings deposits by 3% over December 2017. The concentration level of the current accounts stands improved to 39% of the total deposit size as at March 31, 2018.
