Karachi, August 02, 2023 (PPI-OT): MCB Bank Limited

Earnings: MCB Bank Limited (MCB) announced its financial result for the second quarter of the year 2023. As per the financial result, the Bank reported PKR 13.6bn (PKR 11.5/share) earnings during 2QCY23 compared to PKR 2.21bn (PKR 1.87/share) last year, an increase of +4%q/q and a jump of +6.2x y/y. This brings total profitability for 1HCY23 to PKR 26.7bn (PKR 22.5/share), up by +40% y/y.

Dividend/Pay-out: The Company announced a cash dividend of PKR 7/share along with the result compared to PKR 4/share last year’s same period. This brings the total dividend for the 1HCY23 to PKR 13/share compared to PKR 9/share in a similar period last year.

Operating Performance: During the 2QCY23 period under review, the Bank reported net-interest income of PKR 37bn (up by +77%y/y) and non-interest income of PKR 8bn (up by +13%y/y). As a result, the bank's total revenue stood at PKR 45bn (up by +61%y/y). Moreover, MCB recorded operating expenses of PKR 13bn (up by +25%y/y), which improved the bank’s cost/income ratio to 29% (last year: 37%). The bank booked a provision charge of PKR 1.3bn during 2QCY23 compared to a provision charge of PKR 0.1bn in the same period last year. The tax charge for this quarter came at PKR 13.6bn (effective tax rate of 56% compared to 87% in 2QCY22).