KARACHI, Feb 10: The board of directors of Muslim Commercial Bank has recommended a 15 per cent bonus shares for its share holders. The bonus shares would be disbursed after the final approval by the annual general meeting of the board next month.

This is the third pay-out by MCB for the financial year 2002. Earlier the bank declared 10 per cent bonus to share holders in March 2002 followed by an interim cash dividend of 25 per cent in September that year. Thus the MCB share holders would be getting a total of 25 per cent bonus shares and 25 per cent cash dividend for 2002.

The board of directors that met on Saturday in Lahore noted that the bank had earned a pre-tax profit of Rs 3.1 billion in 2002 up 48 per cent from that of 2001: the after-tax profit stood at Rs 1.7 billion in 2002 up 57 per cent from that of 2001.

The board meeting presided over by MCB chairman Mian Muhammad Mansha approved the financial results of the bank for 2002. MCB President Muhammad Aftab Manzoor informed the board that the non-performing loan portfolio had reduced with full provisioning, says a press release without giving the figures.

Mr Manzoor informed the board that the capital adequacy ratio of MCB stood at 16.5 per cent; return on assets increased to 0.82 per cent from 0.61 per cent and return on equity was 30.7 per cent up from 23.4 per cent in 2001.

He further informed the board that after-tax earning per share stood at Rs 6.52 in 2002 up from Rs 4.16 a year ago. He said Pakistan Credit Rating Agency (PACRA) has assigned MCB a long- term rating of double A which is one of the best for any bank in Pakistan.