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Research Corner - MCB BANK RECORDS STRONG PROFIT IN Q3.

Byline: S.KAMAL HAYDER KAZMI

Presently, MCB Bank is one of the largest financial services providers and oldest banking entities in Pakistan. Bank's objective is to create and enhance long term relationships with clients through catering to all their monetary needs, counting traditional banking services, insurance and investment advisory, coupled with an exceptional level of client service.

The management of the bank believes that the combination of diversity, intellectuality and innovativeness that the professionals possess is the ideal recipe to make sure continued success. Therefore, it places complete responsibility on individuals to drive businesses while offering a wide shelter and framework that enables customers to take measures beyond their known capabilities.

MCB Bank is going by a key transformation. With all its attempts and resources strategically aligned, it is moving towards organizing a strong and steady organization. At MCB, Islamic Banking Division has evolved over the years as completely functional segment of the Bank. The management is productively offering Shariah-compliant products and services to clients interested in Islamic Banking.

The Bank provides broad range of trade products catering to the customers' business requirements in affordable and proper ways, under foreign and domestic regulatory framework.

A great correspondent network across the globe and strong treasury more improve the strength of trade services. Trade sale activities are being carried out by specialized trade desks where team of professionals, well equipped to deal with conventional also advanced features of foreign, is available.

This process includes proactively seeking out business opportunities and handling end-to-end client requests. These trade desks also play an important role in ensuring the fact that the Bank has a strong connection with its clients.

Trade operations are processed by 8 structured trade services centers across the country technically equipped to manage great numbers of transactions with minimum turnaround time.

MCB Bank offers funded and non-funded finance facilities to take care of short-term and long-term business needs of all segments counting SMEs, middle-markets.

At MCB, Investment Banking (IB) has played an exclusive role in the domestic market space in the country by innovative structured solutions for its clients and is regarded as one of the leading Pakistan's investment banking house. During the previous 4-year, IB has led or participated in deals of approximately US$3 billion, of which 8 percent in fertilizer and chemicals, 76 percent are in the energy and refinery sector, 6 percent in telecom and 10 percent in other industries.

During the first 3Q of 2015, MCB Bank recorded consolidated earnings of Rs20.1 billion, which is up 8.8 percent on yearly basis. The Bank recorded a net profit of Rs6.6 billion in the quarter ending on September 30, 2015, up 21 percent from the same 3-month period of 2014. The Bank continued with its strong performance on account of low cost deposits base, enhanced quality of advances and important contribution from non-markup income.

Controlled operating expenses and provision recoveries stayed the hallmark of the period under review.

The management also proclaimed a dividend of Rs4 per share, which brings cumulative pay-out to Rs12 per share since the starting of the year.

Net interest income surged 15 percent in January-September to Rs36.9 billion. While interest expense stayed flat year on year, gross interest income surged 8 percent over the 9-month period.

Furthermore, the Bank's 9-month financial consequences include provision reversals worth over Rs1 billion as compared to the reversals of Rs1.4 billion in January-September along with yearly growth of 39 percent in non-interest income.

MCB BANK LTD IN KSE (RS) (OCTOBER, 2015)

DATE###LDCP###CLOSING###TURNOVER DATE###LDCP###CLOSING###TURNOVER

###RATE###RATE

1###229.45###230.16###286,100###15###240.41###239.43###139,000

2###230.16###234.01###212,700###16###239.43###241.63###115,700

5###234.01###229.03###188,600###19###241.63###242###104,100

6###229.03###228.56###255,600###20###242###243.5###175,500

7###228.56###226.2###215,100###21###243.5###244.42###148,700

8###226.2###228.93###230,500###22###244.42###243.35###66,900

9###228.93###229.9###495,000###26###243.35###243.38###43,300

12###229.9###237.86###404,100###27###243.38###240.99###82,200

13###237.86###242###417,500###28###240.99###241.51###380,500

14###242###240.41###156,500###29###241.51###241.34###70,000

Experts stated that economic activity in the manufacturing sector enlarged in September 2015 at a slightly slower pace than in July 2015. Furthermore the MCB Bank Purchasing Managers Index (PMI) for the month of September recorded a value of 64.76, a minor fall from July's reading of 65.69. The September MCB Bank PMI shows that manufacturing activity continued to rise although its pace slowed down as against to July.

New orders increased at a slowing pace in September, recording an index value of 75.3 as against to 76.3 in July while production level dropped 3.1 points to 67.5. Manufacturing PMI serves as a leading indicator of economic activity as health of the manufacturing sector is typically highly correlated with the future GDP levels.

Due to large branch network and professionals posted in the branches, MCB caters to the financing requirement of the farming community spread entire country and facilitates in attaining raised productivity.

The Bank has reinvigorated its agriculture financing products. Agriculture financing facilities are available across the country at designated lending Bank's branches. All types of financing are available for short and long term depending upon farmers' choice and the nature of finance.

No doubt, MCB gives main priority to small and medium size farmers so that they could be protected from the exploitation of private money lenders and could get good yield of crops.
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Publication:Pakistan & Gulf Economist
Article Type:Financial report
Date:Nov 8, 2015
Words:966
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