MCB Bank profit increases in 2019

LAHORE: MCB Bank profit before tax grew to Rs40.10 billion, reflecting a growth of 25 percent over 2018, despite the tough operating environment, a statement said on Tuesday.

The bank declared 4th cash dividend of Rs5/share ie 50 percent, bringing total cash dividend for the year ended 2019 to 170 percent. Mian Mohammad Mansha chaired the board meeting on Tuesday to review the bank’s performance and approve financial statements for the year ended December 31, 2019.

Net interest income increased 30 percent to Rs59.62 billion on account of effective asset deployment of low cost deposits. Income on advances increased by Rs20.37 billion on account of 398bps increase in yields.

On the investment side, gross mark-up income increased by Rs30.76 billion, due to increased average volume by Rs66.61 billion and yield of 391bps. On the interest bearing liabilities side, the cost of deposits increased by 278bps over last year. The non-mark up income block of the bank was reported at Rs16.68 billion, with major contributions coming in from fee commission and foreign exchange income. Growth in the operational network and constant investment in digital, cyber security and information technology related platforms, the operating expense growth was contained to five percent.