The Board of Directors of MCB Bank Limited (MCB) in its meeting under the Chairmanship of Mian Mohammad Mansha, on August 17, 2022, reviewed the performance of the Bank and approved the interim financial statements for the half year ended June 30, 2022. The Board of Directors has declared a 2nd interim cash dividend of Rs. 4.0 per share i.e., 40pc, in addition to 50pc already paid, bringing the total cash dividend for the half year ended June 30, 2022 to 90pc. With strong build up in core earnings, MCB’s Profit Before Tax (PBT) for the half year ended June 30, 2022 increased to Rs 32.5b with a historic high PBT of second quarter of Rs. 17.6b. Retrospective application of tax amendments along with higher tax rates for current period enacted through Finance Act, 2022 resulted into 87pc effective tax rate for second quarter. Profit After Tax (PAT) registered a decline of 25pc from Rs. 14.74b to Rs. 11.13b; translating into Earning Per Share (EPS) of Rs. 9.39 compared to an EPS of Rs. 12.44. On the back of strong volumetric growth in current account and favourable yield curve movements, net interest income for H1’22 increased by 24pc over corresponding period last year. YoY average current deposits of the Bank registered a growth of Rs. 86.30b (+17pc) while the CASA deposits averaged at Rs. 1,366b; hence, the average CASA to total deposits ratio was measured at a level of 93pc in H1’22. Non-markup income registered a growth of 36pc and aggregated to Rs. 12.90b against Rs. 9.50b in the corresponding period last year. The growth achieved is broad based and driven primarily by the prudent positioning of foreign exchange assets/liabilities amidst comparatively favourable swap curves and diversification of revenue streams through continuous enrichment of service suite while upholding highest service standards; foreign exchange, dividend income and fee & commission income rose by 195pc, 28pc and 12pc respectively. MCB strives to inculcate operational efficiencies across its entire spectrum through optimization, automation and streamlining of business processes. This relentless focus has enabled the Bank to prudently manage its operating expense base despite sustained inflationary pressures due to 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. For H1’22, the operating expenses of the Bank were recorded at Rs. 19.44b, growing by a modest 13pc year on year, while the cost to income ratio significantly improved to 38pc from 42pc reported in corresponding period last year. Proactive monitoring and recovery efforts led to a net provision reversal against non-performing loans (NPLs) which aggregated to Rs. 1,696m for the period under review. The coverage and infection ratios of the Bank were reported at 86.78pc and 7.87pc, respectively. On the financial position side, the total asset base of the Bank grew by 3pc and was reported at Rs. 2,039b. Gross advances registered an increase of Rs. 15b (+2pc), as the consumer lending book further consolidated its traction gained in the last year and grew by Rs. 5.4b (+14pc). During the period under review, MCB’s strategic objective of achieving growth in no-cost current account base was reinforced by an uncertain and volatile interest rate scenario, leading to persistent re-pricing gaps between the earning assets and liabilities. Hence, the Bank registered a growth of 21pc in non-remunerative deposits to close the period at Rs. 681.46b. CASA mix was reported at an industry leading level of 92.41pc which reflects customer loyalty earned by the Bank over 75 years through sustained provision of quality services. The total deposits of the Bank grew by 13pc, as compared to an industry growth of 9pc. MCB attracted home remittance inflows of USD 1,748m, during the period under review with market share of 11.3pc as an active participant in SBP’s cause for improving flow of remittances into the country through banking channels. During the ongoing year, the Bank celebrates successful completion of 75 years of its banking services to the nation. From modest beginnings, 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 16.45pc 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 15.43pc against the requirement of 6pc. Bank’s capitalization also resulted in a Leverage Ratio of 5.86pc which is well above the regulatory limit of 3.0pc. The Bank reported Liquidity Coverage Ratio (LCR) of 214.25pc and Net Stable Funding Ratio (NSFR) of 131.53pc 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, 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.