Karachi: MCB Bank Ltd (MCB) today announced its financial results for the second quarter of 2024, posting a net profit after tax (NPAT) of PKR 15.4 billion and maintaining a steady dividend payout of PKR 9 per share. Despite a slight decline in quarterly performance, the bank's year-over-year growth reflects a strong financial posture.
According to AKD Securities Limited, MCB’s earnings per share (EPS) for the quarter stood at PKR 13.0, marking a 7% decline from the previous quarter but a 13% increase from the same period last year. The bank’s net interest income (NII) was relatively flat quarter-over-quarter at PKR 36.8 billion. A decrease in net interest margins (NIMs) to 7.4% was counterbalanced by a significant expansion in the bank's investment portfolio, which aligned with a broader 44% annual growth in industry investments.
The bank's non-interest income remained unchanged from the previous quarter, despite a surge in foreign exchange income, which rose by 56% to PKR 3.0 billion. This increase was offset by a 14% drop in fee income. Provisions for credit losses significantly decreased by 55% compared to the previous year, reflecting an improved credit environment. Operational expenses saw a slight increase, contributing to a cost-to-income ratio of 33%.
Effective taxes for the quarter stood consistent at 49%, with expectations of adjustments related to ADR-based taxes on the investment book in the upcoming final quarter.