In a board of directors’ meeting, Muslim Commercial Bank Limited’s performance was reviewed and the financial statements for the first quarter of 2015, which ended on 31st March 2015, were finalized. The meeting was led by Chariman Mian Muhammad Mansha on Tuesday.
Q1 results show record breaking performance by MCB as the bank posted its highest ever quarterly profit. The bank made a profit of Rs. 11.9 billion without tax and Rs. 7.9 billion after tax deductions. In comparison, MCB earned Rs. 8.38 billion before taxes, in the same period last year. That is a massive 42% Year-over-year increase for Q1 2015.
MCB earned a record breaking Rs. 11.9 billion before tax deductions, a 42% increase from last year
Major contribution towards the increased profit comes from a 91% increase in non-markup income while net markup income also saw a rise of 20%. Gross markup income recorded an increase of Rs. 2.7 billion where a major portions were contributed by investment worth Rs. 1.8 billion and advances amounting Rs. 932 million. Investments increased by 16% while advances grew by 14% during the time period. Analyst predictions state sensible placements and opportunistic approach in maintaining concentration levels for investments.
Interest expense recorded an increase of Rs. 704 million over the same period last year. This was caused by increased Repo borrowings by the bank. The non-markup increase in income is distributed amongst: an unexpected and significant growth in sale of securities of 864%, dividend income increase of 29%, fee income growth by 23% and other forms of income increased by 28%.
The bank also set a new record by crossing the 1 trillion mark in terms of value of its asset base
An 11% increase was registered for the administrative expense base which is the result of increased operational and infrastructural outreach. It should be noted that administrative expense base excludes the pension reversal fund. MCB continued its recovery and listed a setback in provision of Rs. 266 million in the non-performing loan segment.
The bank set a new record by crossing the 1 trillion mark in terms of value of its asset base. The financial position statement listed a value of Rs. 1,012.6 billion which is 8% higher than the recorded value for Q4 2014. Asset mix highlights showcase that net investments have seen an increase of Rs. 74.8 billion, up by 15% in comparison to the last quarter of 2014.
ROA (Return on Assets) grew by 3.25% while ROE (Return on Equity) returned a 29.13% increase in revenue
MCB coverage ratio is now stated at over 85% with an infection ratio of 6.73%. NPL base has decreased by Rs. 224 million though. In terms of liabilities, MCB saw an increase of Rs 47.8 billion in its deposit base compared to December last year.
With current deposits increased by 10% and savings deposits rising by 6%, MCB Limited managed to retain the highest CASA mix in banking industry at 91%. ROA (Return on Assets) grew by 3.25% while ROE (Return on Equity) returned a 29.13% increase in revenue. MCB Limited’s book value per share stood at Rs. 99.19. The meeting was concluded with a declaration of interim cash dividend of Rs 4.0 per share for the first quarter of the year.