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
|Total Deposits of the bank crossed threshold of PKR 700 Billion
|Change of name from Muslim Commercial Bank to MCB Bank
|Merger of NIB Bank with & into MCB Bank Limited
|1st Pakistani Bank to issue Global Depository Receipts
|Transfer of 90 branches to MCB Islamic Banking
|Total Deposits of the bank crossed threshold of PKR 500 Billion
|Total Deposits of the bank crossed threshold of PKR 1 Trillion
|Total Assets of the bank achieved hallmark of PKR 1 Trillion
|Total Assets of the bank achieved hallmark of PKR 1.5 Trillion
|Source: MCB Bank Limited
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 earlier than the earning assets. Statistics showed that the non-markup income block of the bank was recorded at Rs 11.45 billion with major contributions coming in from fee commission and foreign exchange income. Fees and commissions generated from core banking businesses increased by 5 percent to Rs 8.32 billion. Foreign exchange income grew through an impressive 26 percent to Rs 2.19 billion as a result of better leveraging of market opportunities.
MCB Bank is actively involved in various CSR activities as well and constantly strives to contribute towards the country’s betterment. It has played a key role in enhancing the role and value of service and technology in the banking industry through its customer centric objectives. It is also said that MCB Bank is versed as one of the oldest and most responsible Banks in Pakistan and has played pivotal role in representing Pakistan on global platforms while being one of the few institutions that are recognized and traded in the global market. The Bank has also been acknowledged though prestigious recognition and awards by Euromoney, World Finance, MMT, Asia Money, SAFA (SAARC), The Asset Triple A, Finance Asia, NFEH, CFA, Pakistan Centre of Philanthropy and The Asian Banker. The Bank’s statistics also showed that the coverage and gross NPLs to advances ratios are 83.65 percent and 9.66 percent respectively. Total asset base of the bank on unconsolidated basis was recorded at Rs. 1.58 trillion explaining a rise of 6 percent over December 2018.
Analysis of the assets mix highlights that net investments have grown by Rs. 115.1 billion whereas net advances have declined by Rs. 13.3 billion over December 31, 2018. The Deposit base of the bank has recorded a healthy rise of Rs. 96.1 billion and reached at Rs. 1,145.14 billion, a growth of 9 percent over December 2018. Focusing on its low cost deposit base, the management of MCB Bank was able to raise current deposits at the rate of 4 percent over December 2018, with overall CASA base of 90 percent which reflects the customer confidence and the inherent value of a strong brand name.
Presently MCB is the largest issuer of cards in the country, with an astounding card base of 2.5 million cards in the market. MCB has been in the card acquiring business since 2003 and presently has a merchant base of around 10,000 where all international & local Visa/MasterCard/China Union Pay credit & debit cards are accepted. MCB now offers payment gateway for the rising Pakistani e-Commerce Industry, by offering its existing and new merchants with a secure and efficient card processing service online by MCB eGate. MCB eGate is a service designed to offer online shopping convenience to the card holders and merchants whereby, card holders can make online real-time purchases through the merchant’s website.