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MCB Group Share Price Hits Record High Amidst Strong Fundamentals

The MCB Group witnessed a remarkable milestone this week as its share price surged to an all-time high, closing at Rs 355. This milestone reflects a daily gain of 2%, highlighting the confidence investors have in the company’s performance. On a month-to-date basis, the share price has seen a significant rise of 5%, indicating sustained positive momentum in the market.

According to a recent report by AXYS Stockbroking, foreign investors have emerged as net buyers this month, contributing to 36% of the total value traded. This marks a reversal from the trend observed over the past two months, signalling renewed international interest in the company.

This surge in share price has propelled MCB Group to trade at unprecedented levels, surpassing its previous peak of Rs 350 recorded on 13 January 2020, just before the onset of the Covid-19 crisis.

Behind this impressive performance lies a robust balance sheet, primarily driven by foreign loan disbursements, particularly through Energy and Commodity financing in Africa. The company’s asset growth trajectory continues to be fuelled by a steady influx of deposits, both domestically and in foreign currencies. Moreover, MCB Group has demonstrated its ability to expand its loan portfolio while maintaining excellent loan quality, as evidenced by its historically low Non-performing Loans (NPLs) at 3.1%, and a post-Covid low cost of risk ratio at 0.8%.

Buoyed by the prevailing higher interest rate environment, the Group has reported record profitability, with profit after tax reaching an impressive Rs 15.4 billion. This stellar financial performance, coupled with improving fundamentals and robust loan quality, has led AXYS Stockbroking to issue a ‘Strong Buy’ rating for MCB Group.

In conclusion, the MCB Group’s attainment of an all-time high share price underscores its resilience and strong market position amidst evolving economic conditions. With a solid track record of performance and promising growth prospects, MCB Group continues to be a beacon of stability and profitability in the financial landscape. Investors can look forward to reaping the rewards of this dynamic and forward-looking company in the times ahead.

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