Corporate results: MCB Bank earnings rise 13% to Rs24.3b

Second most profitable bank for 9MCY14 after Habib Bank.

KARACHI:

MCB Bank made a profit of Rs24.3 billion in calendar year 2014, which is 13.1% higher than its earnings recorded in the preceding year.

According to annual results posted on the website of the Karachi Stock Exchange (KSE) on Thursday, the board of MCB Bank also declared a final cash dividend of Rs4 per share, which takes the cumulative dividend for 2014 to Rs14 per share.

MCB Bank was the most profitable bank at the end of the first nine months of 2014 after Habib Bank. It was the third largest Pakistani bank in terms of net assets at the end of 2013, the last year for which industry-wide data are available.

Net income that the bank earned from its core activities during 2014 stood at Rs44.9 billion. Up 10% from 2013, growth in MCB Bank’s earnings derived from core banking activities in 2014 was mainly on the back of a 15% hike in its net interest income.

However, substantially lower provision reversals restricted the overall increase in core income, BMA Capital said in a note. Provision reversals decreased 49% to Rs1 billion on an annual basis in 2014, the bank’s financial accounts show.

MCB Bank’s non-interest income registered an increase of 20% on a year-on-year basis to Rs13.4 billion mainly because of higher fee income (Rs7.2 billion) and other income (Rs1.6 billion).

In the Oct-Dec quarter, MCB Bank’s earnings increased 46% on a year-on-year basis to Rs6.2 billion. However, its earnings in the last three months of 2014 declined 6% on a quarter-on-quarter basis because of higher provisioning charges and higher administrative expenses, according to Topline Securities.

Published in The Express Tribune, February 13^th,  2015.

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