MCB bank has announced Rs 51.989 billion in profit before tax for the year ended December 31, 2021 with final cash dividend of Rs 5 per share.
The profit of Muslim Commercial bank (MCB) during the last calendar year came to Rs 51.989 billion before tax. The performance of the bank was reviewed in the meeting of the Board of Directors, headed by Mian Muhammad Mansha on February 10, 2022. The session declared a final cash dividend of Rs 5.0 per share.
The bank’s Profit After Tax (PAT) for this year posted an increase of 6 percent to reach Rs 30.81 billion, showing into Earning Per Share (EPS) of Rs 26 as compared to Rs 24.50, last year. The average Policy rate was 8.95 percent last year which came down by 19 percent (166bps) to 7.29 percent this year. Non-markup income increased by 11 percent and aggregated to Rs 20.1 billion this year as compared to Rs.18.1 billion last year.
The operating expenses increased by 8 percent. The effective efforts led to a net reversal of Rs 910 million in specific provision maintained against non-performing loans (NPLs)and the general loss reserve of Rs 4 billion created during the Covid-19 outbreak was reversed.
The focus of maintaining a robust risk management framework encompassing structured assessment models, effective pre-disbursement evaluation tools, and an array of post-disbursement monitoring systems enabled the bank to manage its credit risk.
The Non-performing Loan base decreased to Rs 698 million and was reported at Rs 50.49 billion. The total asset base of the MCB, on an unconsolidated basis, was at Rs.1,970 billion (+12 percent). The gross advances witnessed an increase of Rs 122 billion (+24 percent) above the industry growth to, close the year at Rs 636 billion. The corporate lending book raised by Rs 106 billion (31 percent) and the consumer loans went high by 32 percent to Rs 9.5 billion.
The home remittances inflows in the bank stood at $3.527 billion. Under Roshan Digital Account, the inflow was recorded at $216 million by the last day of the year 2021. MCB’s capitalization resulted in a leverage ratio of 6.13 percent which is more than the regulatory limit of 3 percent. The Liquidity Coverage Ratio (LCR) was recorded at 246.31 percent and the Net Stable Funding Ratio (NSFR) came at 155 percent which is required to be at 100 percent.