A Private Bank MCB Became Pakistan Most Profitable Bank in 2018

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MCB

In 2018 an MCB recorded a profit of Rs.21.36 billion, among all the private banks it is the highest profit and categorized as second highest in the overall banking industry.

The similar bank’s profit in 2018 was UBL recorded a gain of Rs. 15.2 billion Allied bank recorded Rs.13 billion and Habib Bank limited with a benefit of Rs. 12.44 billion. National bank of Pakistan did not announce his profit yet, but the profitability recorded as RS. 16.18 billion in three quarters of the year 2018.

NBP become a public sector past from the past two years, it posted a profit of Rs. 8 and Rs.9 billion in the last quarter to conclude that the profitable year with a handsome amount.

MCB Bank Takes Lead with Highest Dividends Income

But MCB bank leads every private bank operating in Pakistan. As compared to 2018 MCB face a drop of 4.8 % or Rs. 1 billion in this year which is Rs. 22.4.

The bank claimed the highest cash dividend per share in an industry with the regular dividend in Pakistan equity market. The final cash dividend of Rs. 4.0 per share for the year ended December 31 by MCB bank. And Rs.12.0 is an interim dividend that shares to stakeholders. At the end of December, 2018 earning per share was Rs. 18.02 compared to 2017 which was 19.56.

Financial Performance

In 2018 the operating environment was challenging with discount rate increases of 425bps by the changing of macroeconomic factors. As compared to the last year bank increases its average deposits of Rs. 123 billion. A significant decline in average borrowing volume restored of Rs. 84 billion.

Due to the decrease in the average volume of Rs. 66 billion a gross makeup decreased by Rs. 2.2 billion.   The bank was reported non-makeup income block of Rs. 17.2 billion with significant contributions in fee and commission income dealing in foreign currencies.

Administrative Expense side

If we count administrative expense side, the bank was able to the growth of 10% excluding pension fund, the surge in inflator pressure coupled with devaluation and increase in operational outreach. By considering the financial position side, a significant increase of 12 % and Rs. 1.5 trillion reported over the last year December 2017.

Liabilities Side Expenses

On the liabilities side, the increase of Rs. 81 billion recorded for the deposit base of the bank registered. The rise of 81 billion is the sum of the deposition of 22 billion transferred to MCB under the demerger scheme sanctioned by the Lahore High Court. The nonperforming loan of bank recorded at Rs. 48.9 with a marginal increase of Rs. 203 million.

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