Byline: S. Kamal Hayder Kazmi
One of the oldest and leading banks in Pakistan is MCB Bank Limited which has journeyed a remarkable tenure of more than half a century of competitively edged and well positioned heights of success by deploying quality banking, heads on technological developments, professionally leading management and prudent and ethical work methodologies.
In the Financial Statements of MCB Bank Limited (MCB) for the nine months period ended September 30, 2019, officials recorded that the profit before tax (PBT) of Rs 27.51 billion which is 18 percent higher than the corresponding last period and translated into earnings per share (EPS) of Rs 13.74. Officials of the bank also recorded that the key highlights of the performance were impressive rise in net interest margins by gradual shift in the maturity profiling of investment base supported by an efficient cost base. The Profit after tax (PAT) of the bank grew by 14 percent to Rs. 16.29 billion as the management registered additional super tax @ 4 percent for the tax year 2018, as enacted by the second supplementary finance act, 2019. Effective tax rate for the nine months ended September 30, 2019 came to 41 percent which is 2 percent higher than the same period previous year.
MCB key historical milestones
1991 Privatization 2015 Total Deposits of the bank crossed threshold of PKR 700 Billion
2005 Change of name from Muslim Commercial Bank to MCB Bank 2017 Merger of NIB Bank with and into MCB Bank Limited
2006 1st Pakistani Bank to issue Global Depository Receipts 2018 Transfer of 90 branches to MCB Islamic Banking
2012 Total Deposits of the bank crossed threshold of PKR 500 Billion 2018 Total Deposits of the bank crossed threshold of PKR 1 Trillion
2015 Total Assets of the bank achieved hallmark of PKR 1 Trillion 2019 Total Assets of the bank achieved hallmark of PKR 1.5 Trillion
The financial experts of the bank also registered that net interest income grew to Rs 42.99 billion, 27 percent higher than same period of 2018. Volumetric growth in average earning assets, mainly investments, along with effective mix of shorter maturity profiling in a growing interest rate scenario enabled the bank to post growth in gross mark-up income of Rs. 39.52 billion, up 67 percent over corresponding last period.
The bank has been riding the yield curve over the last few years, taking the benefit of the significant interest rate hike despite the fact that interests on deposits are repriced...