The Board of Directors of MCB Bank Limited (MCB) in its meeting under the Chairmanship of Mian Mohammad Mansha, on April 27, 2022, reviewed the performance of the Bank and approved the condensed interim financial statements for the first quarter ended March 31, 2022. The Board of Directors has declared first interim cash dividend of Rs.5.0 per share. With strong build up in core earnings, MCB’s Profit Before Tax (PBT) for the first quarter of 2022 rose to Rs 14.9 billion with impressive growth of 32pc. Profit After Tax (PAT) posted a growth of 31pc to reach Rs. 8.9 billion; translating into Earning Per Share (EPS) of Rs. 7.52 compared to EPS of Rs. 5.73 reported in corresponding period last year. On the back of strong volumetric growth in current account, net interest income for 1Q’22 increased by 19pc over corresponding period last year. Working on a well-defined strategy, the average current deposits of the Bank registered a growth of Rs. 71.3 billion (+14pc), when mapped against corresponding period last year Non-markup income registered a growth of 20pc and aggregated to Rs. 5.72 billion against Rs. 4.75 billion in the corresponding period last year. The growth is mainly attributable to rise in foreign exchange and dividend income by 94pc and 81pc respectively; on the back of prudent positioning of foreign exchange assets and liabilities amidst comparatively favorable swap curves and resurging economic activity within the country. The Bank continues to prudently manage its operating expenses with a moderate increase of 9pc, despite sustained inflationary pressures amid currency devaluation and rising commodity prices, higher compliance related regulatory charges, expansion in branch outreach and regular performance and merit adjustments of the Human Capital. Thus the cost to income ratio of the Bank significantly improved to 39.90pc from 43.50pc reported in same period last year. On the provision front, disposal of equity scrips resulted in a net reversal of Rs. 187 million recognized during the period under review while proactive monitoring and recovery efforts led to a reversal of Rs. 616 million in provision against advances. 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 (NPLs) base of the Bank was reported at Rs. 51.34 billion. The Bank has not taken FSV benefit in calculation of specific provision against its non-performing loans (NPL’s) base. The coverage and infection ratios of the Bank were reported at 87.91pc and 8.14pc respectively. On the financial position side, the total asset base of the Bank grew by 6pc to cross the “Two Trillion” landmark and was reported at Rs. 2,095 billion; the major contribution coming from the investment book which increased by Rs. 143 billion (+14pc). While the gross advances registered a slight decline of Rs. 5 billion (-1pc), the consumer lending book grew by leveraging significant activity in the construction and auto segment and consequently added Rs. 2.8 billion in the first quarter (+7pc). On the liabilities side, achieving growth in no-cost current account base remained a key strategic objective for the Bank. Thereby, non-remunerative deposits grew by 14pc to close at Rs. 640 billion; improving their mix in the total deposits to 43pc in absolute terms as of March 31, 2022. CASA mix was reported at an industry leading level of 92.87pc which in turn is a reflection of customer loyalty earned by the Bank over a rich history of 75 years through sustained provision of quality services. The total deposits of the Bank grew by 5.65pc as compared to an industry decline of 2.37pc (domestic deposits) to close the period at Rs. 1,492 billion. Return on Assets and Return on Equity improved to 1.75pc and 22.14pc respectively, whereas the book value per share was reported at Rs. 136.66. During the period under review, MCB attracted home remittance inflows of USD 823 million to further consolidate its position as an active participant in SBP’s cause for improving flow of remittances into the country through banking channels. The inflow by MCB till March 31, 2022 under the Roshan Digital Account (RDA) initiative has stood at USD 282 million. Under “Mera Pakistan Mera Ghar” initiative, till March 31, 2022, the Bank has disbursed 841 loans of Rs. 3.4 billion. While complying with the regulatory capital requirements, the Bank’s total Capital Adequacy Ratio (CAR) is 16.35pc against the requirement of 11.5pc (including capital conservation buffer of 1.50pc 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 14.92pc against the requirement of 6pc. Bank’s capitalization also resulted in a Leverage Ratio of 6.05pc which is well above the regulatory limit of 3.0pc. The Bank reported Liquidity Coverage Ratio (LCR) of 236.59pc and Net Stable Funding Ratio (NSFR) of 154.24pc against requirement of 100pc. The Bank enjoys highest local credit ratings of AAA / A1+ categories for long term and short term respectively, based on PACRA notification dated June 23, 2021. The Bank on consolidated basis is operating the 2nd largest network of more than 1,600 branches in Pakistan. The Bank remains one of the prime stocks traded in the Pakistani equity market with 2nd highest market capitalization in the industry.