MCB Bank earns Rs10.68 billion in H1

KARACHI: MCB Bank Limited reported a nine percent year-on-year increase in its profit to Rs10.68 billion for the half year ended June 30, 2019, translating into earnings per share (EPS) of Rs9.01, a bourse filing said on Wednesday.

MCB Bank’s profit amounted to Rs9.76 billion with EPS of Rs8.24 in the corresponding period a year earlier.

The bank declared second interim cash dividend of Rs4/share, bringing the total cash dividend to 80 percent, continuing with its highest dividend payout trend.

The bank reported profit before tax of Rs18.25 billion, 14 percent higher. MCB Bank said the growth in profitability was due to continuous improvement in the operating efficiencies and margins based on strategic positioning of the asset book.

Net interest income increased to Rs27.80 billion, 23 percent higher than the corresponding last period.

The non-markup income block of the bank was reported at Rs7.9 billion with major contributions coming in from fee commission and foreign exchange income. Fees and commissions generated from core banking businesses increased four percent to Rs5.6 billion. Foreign exchange income increased 47 percent to Rs1.7 billion as a result of better leveraging of market opportunities, the bank said in a statement.

Brokerage Topline Securities said key risks for MCB Bank include higher than expected provisions, lower than expected growth in advances, and deterioration of economic indicators.