MCB Bank Limited (PSX: MCB) has achieved its highest-ever annual profit, reaching Rs65.271 billion (EPS: Rs54.94) for the year ending December 31, 2023. This marks a substantial increase compared to the Rs34.45 billion (EPS: Rs34.45) recorded in the same period last year (SPLY). The board of directors announced a final cash dividend of Rs9 per share (90%) in addition to the Interim Dividend(s) already paid at Rs21 per share (210%).
The bank’s income statement reveals a significant YoY increase of 72.37% in net interest income (NII), totaling Rs165.42 billion in 2023. This surge in NII is attributed to a substantial rise in interest-earning, reaching Rs364.45 billion, up by 66.09% YoY.
Non-Markup Income (NMI) also experienced growth, rising by 36.68% YoY to Rs35.4 billion, driven by a notable increase in Fee and commission income, which reached Rs22.46 billion compared to Rs15.57 billion in 2022. Additionally, MCB reported a gain of Rs837.44 million in income through securities in 2023, reversing the loss of Rs1.74 billion in 2022.
On the expense side, non-markup expenses increased by 27.52% YoY to Rs63.57 billion, attributed to operating charges, which grew by over Rs12 billion in 2023. Expenses related to the Worker’s Welfare Fund and other charges also saw significant increases during the review period.
The bank’s earnings were further boosted by a 96.61% YoY increase in the share of profit of associates, totaling Rs1.35 billion. Moreover, MCB experienced a provision reversal of Rs1.075 billion in the review period, compared to a provisioning expense of Rs2.64 billion in the corresponding period last year.
On the tax front, MCB paid Rs72.25 billion, reflecting a substantial 76.69% YoY increase compared to the amount paid in 2022.
The consolidated Profit and Loss Account for the year ended December 31, 2023, showcases a robust financial performance, with total income reaching Rs200.82 billion, representing a notable increase of 64.79% compared to the previous year. The profit after taxation stood at Rs65.27 billion, demonstrating a commendable 89.46% YoY growth, with basic and diluted earnings per share at Rs54.94.
