MCB BANK LIMITED
Following is the text of press release issued by
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MIB is a wholly owned subsidiary of
MIB has set relatively high targets for deposit growth and plans to focus on maintaining its financing book quality. MIB have deposit system share of 0.5%. Where term deposits witness notable growth which may have implications on cost of funds next year. Technological implementation and setting governance structure were mile stones achieved by bank in the last years. The thrust of the business plan is to achieve break-even. During CY19, NIMR witnessed significant improvement attributable to increase in key policy rate. The fee commission income witnessed good jump but was negated with the loss on securities.
The bank added branches from parent company resulting in bank's expanded outreach; enhanced costs from new branches is yet to be absorbed. Uptick in NPLs; maintaining asset quality intact remains essential. However, MIB's losses has begun to shrink in CY19. As at end-Dec19, the bank's CAR is at 13.82% (CY18: 13.19%). The ratings incorporate the sponsor's willingness to support MIB evident from capital injection of
The ratings are dependent on bank's ability to hold its risk profile, while maintaining its relative market position in the banking industry. Any weakening in asset quality will in turn put pressure on the bank's profitability and risk absorption capacity.
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