MCB Bank continues to declare highest dividend per share in the industry for 9M' 2021.

The Board of Directors of MCB Bank Limited (MCB) in its meeting under the Chairmanship of Mian Mohammad Mansha, on October 27, 2021, reviewed the performance of the Bank and approved the condensed interim financial statements for the nine months period ended September 30, 2021. The Board of Directors has declared 3rd interim cash dividend of Rs. 4.5 per share i.e. 45% bringing the total cash dividend for the year ending 2021 to 140%, continuing with its highest dividend payout trend.

During the nine months period ended September 30, 2021, MCB Bank Limited reported Profit Before Tax (PBT) of Rs. 38.27 billion and Profit After Tax (PAT) of Rs. 22.56 billion. Earnings' Per Share (EPS) stood at Rs. 19.03 against an EPS of Rs. 19.35 reported in the corresponding period last year.

The State Bank of Pakistan continued with its expansionary monetary policy stance during the major part of the period in order to combat the downside risks emanating from COVID-19 outbreak. Average Policy rate registered a decline of 27% (258bps) from an average of 9.59% in corresponding period last year to 7.01% in current period under review. However, on account of historic growth in average current deposits, net interest income of the Bank decreased by 14% only, from Rs 55.35 billion to Rs 47.74 billion.

Non-markup income registered a growth of 6% and aggregated to Rs. 14.38 billion against Rs. 13.56 billion in the corresponding period last year. Improved transactional volumes, surge in business activities, diversification of revenue streams through continuous enrichment of Bank's product suite, investments towards digital transformation and an unrelenting focus on upholding the high service standards supplemented a growth of 14% in fee income whereas dividend and foreign exchange incomes increased by 98% and 21% respectively.

On the operating expenses side, despite sustained inflationary pressures amidst currency devaluation and rising commodity prices, higher compliance related regulatory charges, expansion in branch outreach and regular performance and merit adjustments of the Human Capital, the Bank was able to curtail the total growth to 7%.

On the provision front, disposal of equity scrips resulted in a net reversal of Rs. 183 million for the nine month period ended September 30, 2021. Proactive monitoring and recovery efforts led to a reversal of Rs. 294 million in specific provision maintained against non-performing loans (NPL's) while the general loss...