LAHORE: The Board of Directors of Muslim Commercial Bank (MCB) Bank Limited Wednesday met under the chairmanship of Mian Mohammad Mansha to review the performance of the bank and approve the financial statements for the year ended on December 31, 2016. The bank reported a profit before tax (PBT) of Rs 36.07 billion and a profit after tax (PAT) of Rs 21.89 billion. Net mark-up income of the bank was reported at Rs 43.8 billion, down by 11.25% over the last year. On the gross mark-up income side, the bank reported a decrease of Rs 12.97 billion, which was mainly on account of decreased yields on advances and investments in line with interest rate movements. On the interest expense side, the bank registered a decrease of Rs 7.542 billion over the last year, which was commensurate with the decreasing interest rate environment and the bank’s strategy to taper off its high cost deposits during the year. On the non-mark-up income front, the bank reported a base of Rs 16.22 billion with major contributions from fees and commissions, capital gains and dividend income. The administrative expense base (excluding pension fund reversal) recorded a nominal decrease of 0.67% over the last year depicting continued focus on cost control and deployment of cost-effective measures. On the provision front, the bank subjectively downgraded its portfolio in the last quarter of 2016 on prudent basis. The total asset base of the bank was reported at Rs 1,051.81 billion presenting an increase of 4.72% over 2015. Analysis of the asset mix highlights that net investments have decreased by Rs 9.77 billion (-1.73%) and net advances increased by Rs 43.86 billion (+14.42%) over December 31, 2015. The coverage and infection ratios of the bank improved to 90.82% and 5.90%, respectively. On the liabilities side, the deposit base of the bank recorded an increase of Rs 84.63 billion (+12.14%) over December 2015. The bank continued to enjoy one of the highest CASA mixes in the banking industry of 94.13% with current deposits increasing by 16%, and savings deposits by 11% over December 2015. Strategic focus on current accounts resulted in an increase in concentration level to 38% of the total deposit base. Earnings per share (EPS) for the year were declared at Rs 19.67 as compared to Rs 22.95 for 2015. Return on assets and return on equity were reported at 2.13% and 18.94%, respectively, whereas book value per share stood at Rs 105.97. The board finalised cash dividend of Rs 4 per share for the year ended on December 31, 2016, which is in addition to Rs 12 per share interim dividends already paid to shareholders, taking the dividend payout ratio to 81.34%.