MCB Bank declares Rs7.83 billion profits

KARACHI –– The MCB Bank has declared gross profits of Rs7.83 billion and Rs5.023 billion net profit for the first quarter ended on March 30, showing an increase of 25 percent and 21 percent, respectively over the corresponding quarter last year, a bank statement said on April 26, 2011.

The board of directors in a meeting under the chairmanship of Mian Muhammad Mansha reviewed the performance of the bank and approved the financial statements for the first quarter.

The board of directors declared cash dividend of Rs3 per share for the quarter ended on March 31. Earnings per share (EPS) for the quarter were reported at Rs6.61 against Rs5.45 during the corresponding quarter last year. Return on assets improved to 3.43 percent from 3.13 percent in 2010, whereas return on equity improved to 28.48 percent, up from 25.91 percent in 2010.

Net Interest Income of the bank increased by 25 percent over March 2010 with the non-mark-up income increased by 43 percent to Rs2.008 billion.

On the operating expenses side, gross administrative expenses, excluding the impact of pension fund reversal, increased by a controlled growth of 12 percent over March 2010, whereas provisions were reported at Rs1.197 billion.

The asset base of the bank grew to Rs605 billion from Rs568 billion as of 2010. Advances (gross) of the bank have also shown positive signs during the last two quarters as it stood at Rs280 billion as of March 31 with a rise of two percent over December 31, 2010.

The classified portfolio registered a nominal increase of one percent over December 31, 2010 due to the effective risk management framework adopted by the bank. The investment portfolio increased by 17 percent over December 2010 with high concentration levels in the risk-free government securities.

The deposit base of the bank went up by seven percent with eight percent and nine percent increase reported in the current and saving deposits, respectively, bringing the CASA percentage to 82 percent from 81 percent as of December 31, 2010.

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