MCB Bank secures Top Position as the Most Profitable Bank in Pakistan in 2019 – Research Snipers

MCB Bank secures Top Position as the Most Profitable Bank in Pakistan in 2019

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MCB Bank secured its top position as the most profitable bank in Pakistan in 2019. It has a profit after tax of Rs. 23.9 billion in the previous year.

The bank has been the most profitable bank for two years continuously. It had a close competition with the National Bank of Pakistan. But it beat the public sector bank in terms of profitability. However, the profit of the bank was second-highest after NBP by the end of the third quarter of 2019 with a minor difference.

In comparison to last year, MCB recorded a growth of 12.2% in profit. This recorded the second-highest profit of the bank in its history since it made Rs. 24.3 billion back in 2014.

A 4th cash dividend of Rs. 5 per share i.e. 50% has been declared by the board of directors which brings the overall cash dividend for the year 2019 to 170%. This has enabled MCB to continue its highest dividend payout trend in the commercial bank category.

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By the end of 2019, the earnings per share of the bank surged to Rs. 20.14 from Rs. 17.17 per share. The revenues of the bank were mainly generated from interest-based and non-markup avenues.

There was an increase in net interest margins via a steady shift in the maturity profiling of investment base due to a better structure.

Net interest income increased to Rs. 59.62 billion. This was 30% higher than last year due to better asset deployment of the low-cost deposits. Also, interest-earning assets revealed that income on advances surged by Rs. 20.37 billion, mainly due to an increase in yield of 398 bps.

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