Karachi: MCB Bank Limited (MCB) has announced its financial results for the first half of the year ended June 30, 2024, marking a notable increase in both profit before and after taxation. According to the financial statements presented by the Board of Directors, the bank achieved a profit before taxation of Rs. 62,717 million and after taxation Rs. 31,936 million.
The bank's profit before taxation reflected a 16% growth from the previous year, while profit after taxation saw a 20% increase. This growth translated into an Earning Per Share (EPS) of Rs. 26.95, up from Rs. 22.52 in the same period last year.
According to information available from the Pakistan Stock Exchange (PSX), the increase in net interest income, which grew by 12% over the previous year, contributed significantly to the bank’s profitability. Non-markup income also showed strong performance, totaling Rs. 18.3 billion, marking a 30% increase from the prior year.
MCB's management efforts in optimizing its asset mix and increasing no-cost deposits base were key factors in this financial outcome. Additionally, the bank reported substantial increases in its investment base and advances, which grew by 19% and 6% respectively.
The bank's total asset base expanded to Rs. 2.67 trillion, a 10.1% increase from December 2023. The total deposit base of the bank reached Rs. 1.99 trillion, with current deposits alone growing by Rs. 110 billion, a 13% increase.
Operating expenses were reported at Rs. 28.4 billion, an 18% rise mainly due to higher staff and utility costs. Despite this, the cost to income ratio was maintained at a competitive 30.50%.
MCB's robust credit underwriting framework and diversified loan book have helped manage credit risk effectively. The bank reported a non-performing loan base of Rs. 57.0 billion as of June 30, 2024.
The bank also declared a second interim cash dividend of Rs. 9.0 per share, bringing the total cash dividend for the half year to 180%. Ratings from the Pakistan Credit Rating Agency reaffirmed MCB's “AAA / A1+” for long and short term respectively.
In economic terms, the Pakistani economy has shown signs of recovery with key metrics like inflation decreasing and GDP growth improving. The first half of 2024 has also seen a reduction in the current account deficit, attributed to better trade balances and increased remittances.
Looking forward, MCB is well-positioned to benefit from the expected continuation of macroeconomic stability, supported by a new USD 7 billion Extended Fund Facility program with the IMF.
The Board expressed appreciation for the support from government bodies, shareholders, customers, and employees who have contributed to the bank’s sustained growth and stability.