Karachi, April 27, 2023 (PPI-OT): Commercial Banks - MCB Bank Limited

Earnings: MCB Bank Limited (MCB) announced its financial result for the first quarter of the year 2023. As per the financial result, the Bank reported earnings of PKR 13.1bn (PKR 11/share) during 1QCY23 compared to PKR 8.9bn (PKR 7.5/share) last year, an increase of +46%y/y.

Dividend/Payout: The Company announced cash dividend of PKR 6/share along with the result this quarter compared to PKR 5/share last year same period.

Operating Performance: During the period under review, the Bank reported net-interest income of PKR 30bn (up by +66%y/y) and non-interest income of PKR 6bn (up by 3%y/y). As a result, total revenue of the bank stood at PKR 36bn (up by +51%y/y). Moreover, MCB recorded operating expenses of PKR 12bn (up by +26%y/y), which improved the bank’s cost/income ratio to 34% (last year: 41%). The bank booked provision charge of PKR 0.6bn during 1QCY23 compared to provision reversal of PKR 0.9bn last year same period. Tax charge for this quarter came at PKR 10bn (effective tax rate of 43% compared to 40% in 1QCY22).