MCB Bank Limited has achieved unprecedented financial success in the year 2023, posting its highest-ever Profit Before Tax (PBT) of Rs. 125.2 billion, marking an impressive 75% increase. The announcement comes after the Board of Directors’ meeting, chaired by Mian Mohammad Mansha, on February 6, 2024.
The board approved a final cash dividend of Rs. 9.0 per share, adding to the 210% already paid, bringing the total cash dividend for the year to an impressive 300%. MCB’s strategic efforts in building no-cost deposits and optimizing earning assets mix contributed to this historic financial achievement.
The net interest income for 2023 saw a robust 69% increase, driven by significant growth in current account deposits and a timely repositioning of the asset book. Non-markup income also rose to Rs. 32.9 billion, showing a 34% increase, with major contributions from fee commission income, income from dealing in foreign currency, and dividend income.
The bank’s focus on diversification and continuous enrichment of services, coupled with investments in digital transformation, led to a 43% growth in income from fee commission. Despite challenges such as a high inflationary environment and currency devaluation, the bank reported operating expenses of Rs. 51.8 billion, showing a prudent cost-to-income ratio improvement from 37% to 29%.
In addressing asset quality issues, MCB maintained discipline in risk return decisions, resulting in a non-performing loan (NPLs) base of Rs. 53.9 billion. The bank’s total asset base grew by 16%, reaching Rs. 2.43 trillion, and it attracted home remittance inflows of USD 3,247 million, showcasing an active participation in improving remittance flow into the country through banking channels.
Complying with regulatory capital requirements, MCB reported a Total Capital Adequacy Ratio (CAR) of 20.39%, well above the required 11.5%. The bank’s credit ratings were re-affirmed at “AAA / A1+” by Pakistan Credit Rating Agency, attesting to its financial strength.
On a consolidated basis, MCB operates the second-largest network of over 1,600 branches in Pakistan, posting a Consolidated Profit Before Tax of Rs. 137.5 billion (+83%) for 2023. With its deposit book crossing the Rs. 2 trillion marks as of December 31, 2023, MCB remains a prime stock in the Pakistani equity market and ranks among the highest capitalized banks in the industry.
