The half-yearly profit of MCB Bank soars 140% to Rs. 26.7 billion.


The profit after tax (PAT) of MCB Bank Limited (MCB) increased by 140% to Rs. 26.69 billion for the half-year that ended on June 30, 2023.

Under the direction of Mian Mohammad Mansha, the board of directors of MCB Bank Limited (MCB) examined the bank's performance and approved the condensed interim financial statements for the half year that ended on June 30, 2023.


In addition to the 60% already paid, the Board of Directors has declared a second interim cash dividend of Rs. 7.0 per share, or 70%. This brings the total cash dividend for the half year ended June 30, 2023, to 130%
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The Half-Yearly Profit of MCB Bank 


In comparison to the same period last year, non-markup income increased to Rs. 14.1 billion (+9%) from Rs. 12.9 billion. The main contributors to this increase were income from fee commissions (Rs. 8.8 billion), foreign currency dealing income (Rs. 3.6 billion), and dividend income (Rs. 1.5 billion).

The bank is still able to control expenditures and maintain an effective operational expense base. The bank's operating expenses were recorded at Rs. 24 billion (+23 percent) despite a persistently high inflationary environment, the impact of a harsh currency depreciation, quickly rising commodity prices, and ongoing investments in human resources and technology advancements. The bank's cost to income ratio increased dramatically to 29.58 percent from the 37.46 percent recorded during the same period the previous year.


The bank's ongoing emphasis on creating cost-free deposits resulted in an increase in average current deposits of Rs. 196 billion (YoY: +32 percent). During the period under examination, the average current to total deposits ratio increased to 52.3 percent, up from 41.1 percent during the same period the previous year. The domestic cost of deposits was contained at 7.93 percent throughout the period, compared to 5.48 percent during the same period last year, despite the extraordinary increase in interest rates during that time.