Karachi: MCB Bank Limited (MCB) has reported a significant financial milestone, surpassing PKR 2 trillion in deposits and achieving a record profit before tax of PKR 95.1 billion for the nine-month period ended September 30, 2024. This marks an 8% increase in profit before tax year-on-year, with the bank also declaring a third interim cash dividend of PKR 9.00 per share.

According to MCB Bank Limited, the bank’s strong performance is attributed to robust growth in total deposits, which saw a 14% increase from December 2023. The bank’s profit after tax also rose to PKR 48.5 billion, reflecting a 10% growth over the same period last year, with earnings per share increasing to PKR 40.88. These results were supported by a consistent focus on core earnings, cost optimization, and business diversification.

Net interest income for the bank grew by 8% year-on-year, driven primarily by an increase in average current deposits. Non-markup income also saw a significant rise of 19% to PKR 26.9 billion, with contributions from fee commission income, foreign exchange income, and dividend income. Additionally, the bank experienced strong growth in fee-based income across multiple channels, including a 36% increase in card-related income and significant growth in branch banking fees and investment service commissions.

MCB has managed its operating expenses effectively despite a high inflationary environment, reporting a 17% increase with a focus on staff costs, utilities, and IT-related upgrades. The bank’s cost-to-income ratio was maintained at an efficient 30.93%, highlighting its financial discipline while continuing to invest in innovation and human capital.

On the financial position side, total assets increased by 15.1% year-over-year to PKR 2.8 trillion. The bank’s credit risk management remains robust with a Non-performing loan (NPL) base of PKR 55.1 billion and coverage and infection ratios at 91.98% and 7.59% respectively.

The bank also highlighted its contribution to the economy through home remittance inflows of USD 3,195 million, capturing a 12.5% market share. This underscores MCB’s role in supporting the State Bank of Pakistan’s initiatives to improve remittance flows through banking channels.

MCB’s strategic efforts in capital adequacy are evident, with a total Capital Adequacy Ratio (CAR) of 21.85% and robust liquidity indicators, including a Liquidity Coverage Ratio (LCR) of 263.11% and a Net Stable Funding Ratio (NSFR) of 153.61%.

The bank’s leadership and operational excellence have been recognized internationally, with accolades from the Asian Development Bank and high ratings from Pakistan Credit Rating Agency, reaffirming its strong market position and commitment to corporate governance and transparency.