KARACHI: MCB Bank on Wednesday announced an impressive 21 percent increase in net profit for the year ending December 31, 2020, primarily driven by remarkable growth in gains on securities.
The financial performance of MCB Bank reflected strong revenue streams and strategic investment gains, further solidifying its position in the banking sector.
The net profit of MCB Bank surged to Rs29.04 billion in 2020, compared to Rs23.97 billion in the previous year, marking a substantial year-on-year increase. The bank’s earnings per share (EPS) also rose to Rs24.50 from Rs20.23 in 2019, showcasing its profitability and robust financial standing.
A key contributor to the bank’s strong financial results was the exceptional performance in gains on securities. MCB Bank recorded an unprecedented rise in this segment under non-markup/interest income, posting gains of Rs3.33 billion in 2020. This was a significant threefold increase from Rs832.84 million recorded in the preceding year, highlighting the bank’s effective investment strategy and market positioning.
Additionally, MCB Bank declared a final cash dividend of Rs15 per share (150 percent) for the year ended December 31, 2020. This is in addition to the interim dividends already paid at Rs5 per share (50 percent), reaffirming the bank’s commitment to shareholder returns and financial strength.
The bank’s net markup/interest income exhibited a solid growth trajectory, climbing to Rs71.33 billion in 2020 from Rs59.61 billion in 2019. This increase reflects MCB Bank’s ability to leverage its lending and investment activities to drive higher revenue and profitability.
Total income of MCB Bank grew to Rs18.13 billion for the year ended December 31, 2020, as compared with Rs16.67 billion in the previous year, demonstrating consistent financial expansion. The bank’s strategic initiatives contributed to this steady income growth, ensuring long-term sustainability.
However, the bank also incurred higher provisions and write-offs during the year. MCB Bank reported expenses of Rs7.313 billion under this head in 2020, compared to Rs2.48 billion in the previous year. Despite this increase, the overall financial performance remained strong, underscoring the resilience of MCB Bank amid changing economic conditions.
With sustained growth in net profit, higher earnings per share, and a significant boost in gains on securities, MCB Bank continues to strengthen its market presence and financial stability, positioning itself for future expansion and profitability.