MCB Bank profit up by 39pc to Rs 38.35 billion in nine months.

The Board of Directors of MCB Bank Limited (MCB) met under the Chairmanship of Mian Mohammad Mansha, on October 27, 2020 to review the performance of the Bank and approve the condensed interim financial statements for the nine months period ended September 30, 2020. In compliance with SBP's instructions, Bank has not declared dividend for the third quarter ended September 30, 2020.

During the nine months ended September 30, 2020, MCB achieved significant financial growth by focusing on its operational resilience and continuity planning to successfully navigate through the downside risks posed to operating and economic outlook by the ongoing COVID-19 outbreak while concurrently playing a central role in supporting Governments' key pandemic responses for credit extension and provision of essential banking services to the general public.

With strong build up in core earnings, MCB's Profit After Tax (PAT) for the nine months period ended September 30, 2020, posted an year on year growth of 41% to reach Rs. 22.94 billion; translating into an Earnings Per Share (EPS) of Rs. 19.35 against an EPS of Rs. 13.74 posted in the corresponding period of 2019.

Sizeable growth in current deposits, timely shift in maturity profiling of investments and favorable re-pricing lag enabled the Bank to increase its net interest income by 29% to Rs. 55.35 billion.

Fee income for 9M'20 was reported less by 4% over the same period last year, primarily due to lower transaction volumes and business activities induced by the lockdowns; however, with their lifting, fee income is normalizing, growing by 25% over the previous quarter in 3Q'20. Amidst evolving yield curve expectations, proactive duration management of the investments portfolio resulted in capital gains of Rs. 2.80 billion during the period under review. Hence, the total non-markup income posted a robust growth of 18% to reach Rs. 13.56 billion.

On the operating expenses side (excluding pension fund reversal), despite sustained inflationary pressures, expansion in branch outreach and continued investment in technological infrastructure together with regular performance and merit adjustments for the Human Capital, the Bank's strategic focus of balancing short term tactical cost reductions with long term cost initiatives has assisted in containing growth in administrative expenses; in turn registering a decline of Rs. 292 million during the period under review.

In anticipation that customers affected by the...