MCB posts Rs24.32 billion profit in 2014

LAHORE: The MCB Bank Limited earned a profit-after-tax of Rs24.325 billion and the profit-before-tax of Rs36.729 billion with an increase of 13 percent and 14 percent in 2014, respectively, a bank statement said.
This was revealed at the 67th Annual General Meeting of the shareholders of MCB Bank Limited held recently under the Chairmanship of Aftab Ahmed Khan, to transact the ordinary and special businesses of the bank.
MCB Bank Limited President informed the members that despite the challenging operating environment, the bank delivered exceptional performance and growth in financial year 2014. This was primarily contributed by 15 percent increase in net markup income and 20 percent increase in non-markup income. Net markup income of the bank was reported at Rs43.512 billion, whereas non-markup income increased to Rs13.435 billion. The increase in non-markup income was due to the compensation received by the bank on delayed tax refunds amounting to Rs1.1 billion, income from dealing in foreign currencies of Rs527 million and fee, commission and brokerage income of Rs484 million.
The president added that the administrative block (excluding pension fund reversal) of the bank registered nominal increase of five percent over 2013, depicting continued focus on cost control and deployment of cost-effective measures. He further added that exceptional performance on account of recovery units coupled with strengthened risk management framework resulted in significant reversals in provision against advances.
It was highlighted that the asset base of MCB was reported at Rs934.631 billion signalling a healthy growth of 15 percent over December 2013. Analysis of the asset mix witnessed a 14 percent increase in investments to Rs511.137 billion and 20 percent increase in gross advances to Rs322.318 billion. The quality of asset showed considerable improvement as a result of the non-performing loans of the bank contracting by 5.8 percent to Rs21.908 billion.
On the liabilities side, the deposit base of MCB grew by nine percent and was reported at Rs688.330 billion. The bank continued to enjoy the highest Casa mix in the banking industry, at 91 percent, compared to 90 percent reported last year. Earnings per share (EPS) for the year were declared at Rs21.85 as compared to Rs19.31 for 2013. During the year, MCB maintained return on assets of 2.78 percent, the highest in the banking industry, whereas return on equity was reported at 23.83 percent.
On account of social responsibility to the community, MCB Bank donated Rs40 million to Chief Minister’s Relief Fund for IDPs North Waziristan – 2014, while charity contributions of Rs5 million were disbursed to various charity organisations.
The audited financial statements of MCB and its subsidiaries were adopted by the shareholders at the AGM and final cash dividend at 40 percent recommended by the board of directors, in addition to 100 percent interim dividends (paid during the year), was approved. Moreover, M/s “AF Ferguson and Company Chartered Accountants” being eligible were appointed as the auditor for next year.