The Board of Directors of MCB Bank Limited (MCB) in its meeting under the Chairmanship of Mian Mohammad Mansha, on February 08, 2023, reviewed the performance of the Bank and approved the financial statements for the year ended December 31, 2022. The Board of Directors has declared final cash dividend of Rs. 6.0 per share i.e. 60%, in addition to 140% already paid, bringing the total cash dividend for the year 2022 to 200%. With strong build up in core earnings, MCB’s Profit Before Tax (PBT) for the year ended December 31, 2022, posted an impressive growth of 37.3% to reach a historic high of Rs. 71.4 billion. Retrospective application of tax amendments along with higher tax rates for the current year enacted through Finance Act, 2022 resulted into a 54% average tax rate for the year compared to an average tax rate of 41% for last year. Profit After Tax (PAT) registered a growth of 6.3% and increased from Rs. 30.8 billion to Rs. 32.7 billion; translating into Earning Per Share (EPS) of Rs. 27.63 as compared to EPS of Rs. 26.00 reported in the last year. On the back of strong volumetric growth in current account and favourable yield curve movements, net interest income for the year ended December 31, 2022 increased by 36% over last year. Average current deposits of the Bank registered a highest ever growth of Rs. 96.8 billion (+18%) in 2022, on the back of strategically focused drive. Non-markup income registered a growth of 23% and reported a base of Rs. 24.6 billion against Rs. 20.1 billion in the last year. Improved transactional volumes, diversification of revenue streams through continuous enrichment of Bank’s product suite, investments towards digital transformation and an unrelenting focus on upholding the high service standards supplemented a growth of 14% in fee income. The contribution from foreign exchange line, debit cards, trade business and home remittances remained strong during the year. The Bank continues to manage an efficient operating expense base and manage costs prudently. Despite exceptionally high inflation, impact of currency devaluation and continued investments in human resources, branch network and technological upgradation, operating expenses of the Bank were recorded at Rs. 41.8 billion, growing by 17% over the last year, while the cost to income ratio significantly improved to 37.4% from 42.4% reported in the last year. Proactive monitoring and recovery efforts led to a net provision reversal of Rs. 2.8 billion in specific provision maintained against non-performing loans (NPLs). Persistent focus on maintaining a robust risk management framework encompassing structured assessment models, effective pre-disbursement evaluation tools and an array of post disbursement monitoring systems has enabled MCB to effectively manage its credit risk. The Non-performing loan (NPL) base of the Bank was reported at Rs. 51.3 billion. The Bank has not taken FSV benefit in calculation of specific provision against its NPLs. The coverage and infection ratios of the Bank were reported at 86.17% and 6.43%, respectively. On the financial position side, the total asset base of the Bank, on an unconsolidated basis, was reported at Rs. 2.1 trillion (+6%). The gross advances of the Bank registered a historic growth of Rs. 162 billion (+25%), above the industry average, to close the year at Rs. 798 billion; improving ADR of the Bank to 58%. The corporate lending book grew by Rs. 161 billion (+36%) whereas the consumer loan portfolio increased by Rs. 4.5 billion (+12%). On the liabilities side, the deposit base registered a complete transformation with current account growth gaining momentum quarter on quarter. The concentration level of current account improved to 49% on the back of strategic drive. Non-remunerative deposits grew by 21% to close at Rs. 680 billion as at December 31, 2022. CASA mix was reported at 95.9% whereas the total deposits of the Bank were reported at Rs. 1.37 trillion. MCB attracted home remittance inflows of USD 3,434 million, during the year with market share improving to 11.6% as an active participant in SBP’s cause for improving flow of remittances into the country through banking channels. In 2022, while successfully completing the 75 years of the banking services to the nation, the Bank, has transformed into a dynamic and innovative organization; overcoming a multitude of challenges along the way with resolve and fortitude. Recognition by the globally coveted Asia Money awards as ‘Pakistan’s Best Corporate Bank of the Year’ in 2022 is a testament to its legacy of posting consistent and exceptional performance for its stakeholders. While complying with the regulatory capital requirements, the Bank’s total Capital Adequacy Ratio (CAR) is 18.84% against the requirement of 11.5% (including capital conservation buffer of 1.50% as reduced under the BPRD Circular Letter No. 12 of 2020). Quality of the capital is evident from Bank’s Common Equity Tier-1 (CET1) to total risk weighted assets ratio which comes to 16.32% against the requirement of 6%. Bank’s capitalization also resulted in a Leverage Ratio of 6.12% which is well above the regulatory limit of 3.0%. The Bank reported Liquidity Coverage Ratio (LCR) of 204.16% and Net Stable Funding Ratio (NSFR) of 138.10% against requirement of 100%. Return on Assets and Return on Equity reported at 1.61% and 19.78% respectively, whereas the book value per share was reported at Rs. 144.17. Pakistan Credit Rating Agency re-affirmed credit ratings of MCB at “AAA / A1+” for long term and short term, respectively, through its notification dated June 23, 2022. The Bank on consolidated basis is operating the 2nd largest network of more than 1,600 branches in Pakistan and remains one of the prime stocks traded in the Pakistani equity market, with 2nd highest market capitalization in the industry.