MCB earns Rs 8.7 billion pre-tax profit for first half of 2006

KARACHI (August 25 2006): MCB Bank has earned a record pre-tax profit of Rs 8.7 billion for half year ended June 2006, which is more than double of Rs 4.2 billion in the corresponding period of the last year. Profit after tax is Rs 5.7 billion compared to Rs 3.0 billion in the corresponding period of the last year.

This translates into earning per share (EPS) of Rs 11.22 as compared to Rs 5.94 last year. The bank declared cash dividend at the rate of 20 percent. The Board of Directors meeting of the bank was held at Lahore on Thursday under the chairmanship of Mian Muhammad Mansha, Chairman of the board, and approved the financial statements of the first half-year ended June 30, 2006.

The loan to deposit ratio increased from 62 percent in the first half of 2005 to 73 percent during the half year ended June 2006. This improvement in ratio helped bank to increase its net markup income from Rs 6,046 million to Rs 10,103 million. The remarkable growth in earnings has been registered by leveraging the balance sheet focusing on increasing lending to different segments of the economy.

During the second half of 2006 MCB is proposing to increase its capital by issuing Global Depository Receipts (DGRs), which will be listed at the London Stock Exchange.

This listing would help the bank in growing further and bringing an international dimension to MCB's shareholder base. Taking benefit of strong capital base, continuing good credit metrics and firm cost control, the bank is well positioned in core business lines to seize opportunities to grow the balance sheet and further improve earnings.

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