LAHORE: MCB Bank posted the highest ever profit-before-tax of Rs36.7 billion during 2014, up by 14 per cent from a year earlier.
In an announcement after its board meeting with Mian Mohammad Mansha in chair on Thursday, the bank said 15pc increase, or Rs12.2bn, in the net markup income had pushed its profits.
Earnings per share (eps) stood at Rs21.85 compared to Rs19.31 in 2013. The bank reported return on assets (RoA) of 2.78pc, up from 2.72pc the previous year, whereas return on equity (RoE) improved to 23.83pc from 23.09pc.
The board declared final cash dividend of Rs4 per share, which is in addition to Rs10 per share interim dividends already paid to shareholders.
The interest expense registered an increase of Rs6.6bn. The impact of regulatory revision in minimum deposit rate was managed by increasing CASA deposit base and reducing high cost fixed deposits.
On the non-markup income front, the bank registered contributions from fee income, dividend income, income from dealing in foreign currencies and other income. The administrative expense base (excluding pension fund reversal) recorded a nominal increase of around 5pc, which remains well below the inflationary trend.
The bank continued recovery of non-performing loans and posted a reversal in provision against advances and investments of Rs1.5bn. This translated into profit-after-tax of Rs24.3bn, growing 13pc from a year ago.
The bank’s total asset base was reported at an all-time high of Rs934.6bn which increased by 15pc. The net advances increased by Rs55.3bn (22pc) and net investments increased by Rs62.1bn (14pc).
The quality of assets saw improvement as the non-performing loans contracted by 6pc to Rs21.9bn. Coverage ratio of the bank was reported at 85.6pc with infection ratio improving to 6.8pc, primarily on account of the increase in gross advances and corresponding decrease in NPL base. On the liabilities side, deposit base of the bank recorded an increase of Rs56bn or 9pc.