The bank achieved the milestone of being the first bank in the Pakistan banking industry to post profit before tax in excess of Rs. 30 billion with PBT reported at Rs. 31.483 billion and PAT reported at Rs. 19.425 billion.
Financial year 2011 proved to be a year of record performance for MCB as its Net Interest Income increased by 21% over last year with non markup income increasing by 29% to Rs. 8.112 billion. On the operating expenses side, gross administrative expenses (excluding the impact of pension fund reversal) increased with a controlled growth of 15% over last year. Provisions for the period were reported at Rs. 3.654 billion with a nominal increase of 2% over last year.
The asset base of the bank grew to Rs. 653.233 billion from Rs. 567.553 billion as at year end 2010. The investment portfolio increased considerably by Rs. 103.6 billion over December 2010 with higher concentration in risk free government securities. Advances (gross) of the bank were reported at Rs. 248.135 billion with a decrease of 9% over 2010, mainly on account of conversion of commodity financing / circular debt exposure to risk free government securities.
The deposit base of the bank went up by 14%, with 11% and 16% increase reported in current and saving deposits respectively, maintaining the CASA percentage at 81%.
The Board of Directors of MCB Bank Ltd. declared cash dividend of Rs. 3.0 (December 31, 2010: cash dividend Rs. 3.0 per share) and bonus issue of 10% (December 31, 2010: 10%) for the period ended December 31, 2011, in addition to interim cash dividends of Rs. 9.0 already paid.
The Board of Directors met under the Chairmanship of Mr. Mian Mohammad Mansha, on February 21, 2012 to review the annual performance of the Bank and approve the financial statements for the year ended December 31, 2011.
Earnings per share (EPS) as of December 31, 2011 came to Rs. 23.23 compared to Rs. 20.18 for last year. Return on assets improved to 3.18% (2010: 3.13%) whereas return on equity improved to 26.23% (2010: 25.91%).