Trade Chronicle Sep-Oct 2015

TRADE CHRONICLE
MCB Bank earns Rs20.2bn profit after tax in nine months
The Board of Directors of
MCB Bank Limited, met
under the chairmanship of
Mian Mohammad Mansha,
recently to review the
performance of the Bank and
approve the financial
statements for the nine
months ended September
30, 2015.
The Bank continued with its
strong performance on
account of low cost deposits
base, improved quality of
advances and significant
contribution from nonmarkup
income. Controlled
operating expenses and provision
recoveries remained the hallmark of
the period under review.
MCB Bank Limited posted a healthy
increase of 24 percent in profit before
tax (PBT) which stood at Rs. 34.1
billion. With profit after tax of Rs. 20.2
billion, the Bank showed an increase
of 12 percent over corresponding
period last year. On the gross
markup income side, the Bank
recorded an increase of Rs. 4.8
billion with major contribution
from investment income.
The total asset base of MCB
Bank Limited grew by 11
percent over December 2014
and was reported at Rs. 1.04
trillion.
Third quarter of the calendar
year remained challenging for
the banking industry in terms
of deposits. Tax on
transactions introduced for
non-filers had an impact on the
deposit growth rate registered in the
preceding quarters. However, overall
deposit growth remained satisfactory
despite the reduction in high cost
deposits.
United Bank posts profits of Rs7.024 billion
The United Bank Limited
(UBL) has announced a net
profit of Rs7.024 billion for the
quarter ended September 30,
up 20 percent as against
Rs5.853 billion earned a year
ago. The earnings per share
(EPS) clocked in at Rs5.58 in
the quarter as compared to
Rs4.71 last year.
The bank has also announced
an interim cash dividend of
Rs3 per share, which is in
addition to Rs6 per share
already paid to the
shareholders.
Umair Nasir at Topline Securities said
the earnings growth in the quarter
was led by a 25 percent increase in
the net interest income (NII) to
Rs14.368 billion.
“Major investment in long-term
Pakistan Investment Bonds
(PIBs), growth in other assets
and strong international
presence supported NII growth
despite declining interest
rates.”
Non-interest income during the
quarter increased by four
percent to Rs5.224 billion.
Non-interest expense
increased by seven percent to
Rs8.542 billion, driven by higher
admin expenses.
For the nine-months ended
September 30, 2015, the UBL
posted a net profit of Rs20.443 billion,
translating into EPS of Rs16.21 as
compared to the profit of Rs17.178
billion and EPS of Rs13.94 last year.
Trade Chronicle - September - October 2015 - Page # 30