MCB Bank declares 21pc rise in annual profit amid unprecedented growth in gain on securities

MCB Bank declares 21pc rise in annual profit amid unprecedented growth in gain on securities

KARACHI: MCB Bank on Wednesday declared over 21 percent increase in net profit for the year ended December 31, 2020, which may be attributed to unprecedented growth in gain on securities.

The net profit of the bank grew to Rs29.04 billion for the year 2020 as compared with the profit of Rs23.97 billion in the preceding year.

The bank declared earning per share of Rs24.50 for the year as compared with EPS Rs20.23 of the last year.

The major component of net profit of the bank is gain on securities during the year. The MCB’s gain on securities under the head of non mark-up/interest income posted unprecedented growth to Rs3.33 billion for the year under review as compared with Rs832.84 million during the preceding year, showing a three time growth.

The bank announced a final cash dividend for the year ended December 31, 2020 at Rs 15 per share i.e. 150 percent. This is in addition to interim dividends already paid at Rs5 per share i.e. 50 percent.

Net mark up / interest income grew to Rs71.33 billion for the year 2020 as compared with Rs59.61 billion during the preceding year.

Total income of the banks grew to Rs18.13 billion for the year ended December 31, 2020 as compared with Rs16.67 billion in the preceding year.

For provisions / (reversal) and write offs, the bank incurred expenses of Rs7.313 billion for the year under review as compared with Rs2.48 billion in the preceding year.

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