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


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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