MCB Bank Q1 2024 Financial Report
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MCB Bank Q1 2024 Financial Report– In a recent meeting session presided over by Mian Mohammad Mansha, the Board of Directors of MCB Bank Limited (MCB) meticulously scrutinized the bank’s financial performance and approved the condensed interim financial statements for the quarter ending March 31, 2024.

The Board of Directors announced an initial interim cash dividend of Rs 9.0 per share, equivalent to 90 percent, for the same quarter, showcasing their confidence in the bank’s financial stability.

Under the visionary leadership of CEO and President Shoaib Mumtaz, MCB’s strategic focus on maintaining a robust no-cost deposits base and optimizing the mix of earning assets led to a substantial increase in profit before tax (PBT) for the first quarter of 2024, reaching an impressive Rs 32.5 billion, marking a 41 percent growth. Similarly, profit after tax (PAT) surged by 27 percent to reach Rs 16.6 billion, resulting in an earnings per share (EPS) of Rs 13.97 compared to Rs 11.02 in the corresponding period last year.

Financial Estimates (PKR mn) 1QCY23 1QCY24 YoY
M/up Earned 63,855 89,009 39%
M/up Expense 33,785 50,938 51%
Net Interest Income 30,070 38,071 27%
Non-Interest Income 5,922 9,123 54%
Total Provisions 624 -69 -111%
Operating Expenses 12,351 14,722 19%
Profit Before Tax 23,016 32,541 41%
Taxation 9,960 15,986 61%
Profit After Tax 13,056 16,555 27%
EPS 11.02 13.97 27%

The bank witnessed a significant rise in average current deposits (+13% YoY) and made strategic adjustments within its asset book, resulting in a 27 percent increase in net interest income for 1Q’24 compared to the same period last year.

Non-markup income witnessed a remarkable surge to Rs 9.1 billion (+54%) from Rs 5.9 billion in the corresponding period last year, driven primarily by fee commission income of Rs 6.1 billion (+46%), foreign currency dealings income of Rs 1.9 billion (+97%), and dividend income of Rs 1.0 billion (+55%).

Read Also: Innovation at the Helm: President & CEO Shoaib Mumtaz Leadership Reshaping MCB Bank’s Future

Despite challenges posed by inflation and escalating commodity prices, MCB maintained efficient operating expenses, reporting Rs 13.9 billion (+18%) amidst investments in human resources and technological advancements. The bank’s cost-to-income ratio improved to 29.50 percent from 32.77 percent in the corresponding period last year.

MCB diligently managed asset quality concerns by adhering to a disciplined risk-return approach, resulting in a Non-performing loan (NPLs) base of Rs 55.4 billion as of March 31, 2024, with commendable coverage and infection ratios.

While the bank’s total asset base slightly decreased to Rs 2.41 trillion, total deposits surpassed Rs 1.85 trillion and the domestic market share improved to 6.05 percent.

Return on Assets and Return on Equity improved to 2.74 percent and 31.54 percent respectively, with a book value per share reported at Rs 180.02.

MCB attracted home remittance inflows of USD 892 million (+13%), further reinforcing its role in facilitating remittances through banking channels.

In compliance with regulatory capital requirements, MCB’s total Capital Adequacy Ratio (CAR) stood at 19.62 percent, with robust liquidity and stable funding ratios well above regulatory thresholds.

The Pakistan Credit Rating Agency reiterated MCB’s credit ratings, maintaining the prestigious “AAA / A1+” for both long term and short term. This reaffirmation underscores the bank’s robust financial position and outstanding performance in the industry

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