MCB Bank Announces Significant Dividend for 2023 Financial Year

Karachi, MCB Bank Limited has disclosed its financial results for the year ended December 31, 2023, revealing a robust performance with a notable final cash dividend announcement. The Board of Directors, in its meeting held on February 6, 2024, approved a final cash dividend of PKR 9.00 per share, equating to 90%. This dividend is in addition to the interim dividends already paid at PKR 21.00 per share or 210%.

No issuance of bonus shares, right shares, or any other entitlement/corporate action was recommended, indicating a focus on direct shareholder returns through dividends. Similarly, no price-sensitive information was disclosed outside of the dividend announcement.

The financial statements showed a marked increase in the bank’s profitability, with net markup/interest income reaching PKR 147.7 billion, up from PKR 87.2 billion in the previous year. Non-markup/interest income also saw a significant rise, totaling PKR 32.9 billion, compared to PKR 24.6 billion in 2022. This increase was supported by gains across various income streams including fee and commission, foreign exchange, and other income.

Operating expenses were reported at PKR 51.8 billion, up from the previous year’s PKR 41.5 billion, reflecting the bank’s investment in its operations amidst expanding revenues. Profit before taxation soared to PKR 125.2 billion, a significant increase from PKR 71.4 billion in 2022, culminating in a profit after taxation of PKR 59.6 billion. Earnings per share rose sharply to PKR 50.32 from PKR 27.63.

The bank has scheduled its Annual General Meeting for March 27, 2024, in Lahore, Pakistan. Shareholders on record as of March 15, 2024, will be eligible for the dividend, with the share transfer books to be closed from March 18 to March 27, 2024. The annual report for 2023 will be disseminated to shareholders in advance of the AGM, in line with regulatory requirements.