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MCB hits pre-Covid level profits of almost Rs9 billion

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MCB hits pre-Covid level profits of almost Rs9 billion

MCB’s profit after tax for the year ended 30 June 2022 reverted to its pre-pandemic level, growing by 21.0% to reach Rs8.9 billion compared to the same period last year.

MCB’s performance was reportedly sustained by an improvement in core earnings and a reduction in Net impairment of financial assets.

The island’s largest bank’s operating income increased by 5.6% to reach Rs20.9 billion due to higher net fee and commission income from regional trade finance and payments and Profit arising from dealing in foreign currencies.

The rise in Net interest income was partly impacted by reduced margins.

Its non-interest expense rose by 9.1% to reach Rs7.3 billion resulting in an increase of 3.8% at Rs13.5 billion in Operating profit before impairment.

Net impairment of financial assets for the year ended 30 June 2022 dropped to Rs3.4 billion compared to Rs4.6 billion for the same period last year, resulting in a lower cost of risk at 0.91% of Total Loans and Advances.

The latter together with an additional increase in Share of profit of associates boosted the overall performance of the bank.

Deposits from banks and customers rose by Rs16.9 billion to reach Rs492.4 billion whilst Loans and Advances to customers increased by Rs49.9 billion to reach Rs306.6 billion, mainly driven by its Trade Finance activities.

Shareholder’s equity was up by 5.5% to reach Rs66.8 billion. The Bank’s Capital adequacy and Tier 1 ratios remained strong at 17.2% and 16.3% respectively.

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The information and opinions expressed in our published works are those of authors/sources believed to be reliable. NewsMoris makes no representations as to accuracy, completeness, suitability, or validity of any information expressed.