MCB Bank has crossed the mark of Rs. 1 trillion deposits, becoming the fourth bank in Pakistan to reach the milestone.
United Bank Limited attained this benchmark last year, following the National Bank of Pakistan and Habib Bank Limited.
The deposit inflows were coming into the bank mainly from its depositors and investors and from an additional segment of depositors’ money which shifted to MCB Bank from NIB Bank through a merger deal.
According to the financial statement, the deposit base of the bank registered a significant increase of Rs. 50.26 billion since December 2017 which resulted in the bank crossing one trillion deposits benchmark. The deposits base remained stable despite a transfer of net deposit of Rs. 21.92 billion to MCB’s wholly owned subsidiary MCB Islamic Bank Limited.
It is likely that more banks such as Allied Bank Limited, Bank Alfalah and Bank Al Habib will join the club of the banks with more than Rs. 1 trillion in deposits in the coming months.
MCB Profits Drop By 28% in H1 2018
During the six month period that ended on June 30, 2018, MCB Bank Limited reported Profit Before Tax (PBT) of Rs. 16.00 billion (-9.74%) and Profit After Tax (PAT) of Rs. 9.76 billion (-28.68%). The significant decrease in PAT was on account of a tax provision reversal amounting to Rs. 3.59 billion recorded in June 2017 results.
The board of directors declared a second interim cash dividend of Rs. 4.0 per share for the half year ending June 30, 2018, which is in addition to Rs. 4.0 per share interim dividend already paid to shareholders.
Earnings per share (EPS) for the half year was Rs. 8.24 as compared to Rs. 12.30 during the same period last year. Return on Assets and Return on Equity were reported at 1.42% and 14.29% respectively, whereas book value per share was reported at Rs. 115.40.
The net interest income of the bank improved significantly by 12.49% compared to the corresponding period last year and was reported at Rs. 22.55 billion. Analysis of the interest earning assets highlights that income on advances increased by Rs 4.8 billion, primarily on account of significant increase in average advances volume of Rs. 118 billion with improved yield of 39bps.
On the investment side, the average volume dropped by Rs. 88 billion with a decrease in the yield of 9bps, resulting in a decrease of Rs. 3.4 billion in investment income.
The non-markup income block of the bank was reported at Rs 8.26 billion reflecting a decrease of 14.63% when compared with corresponding period last year. The total asset base of the bank on a standalone basis was reported at Rs. 1.42 trillion reflecting an increase of 7.11% over December 31, 2017.
MCB Bank Transfers Branches To MCB Islamic Bank
During the second quarter, the Bank successfully completed the transfer of 90 branches from MCB Bank Limited to wholly owned subsidiary MCB Islamic Bank Limited.
With the transfer of branches, the penetration strength of MCB Islamic Bank will enhance as its branches are available at 166 locations in different cities.