MCB Bank Reports Profit of Rs. 41.10 Billion in 9 Months

The Board of Directors of MCB Bank Limited (MCB), chaired by Mian Mohammad Mansha, reviewed the Bank’s performance and approved the condensed interim financial statements for the nine months ended September 30, 2025. The Board announced a third interim cash dividend of Rs. 9.00 per share (90%), in addition to the 180% dividend paid earlier, bringing the total cash dividend for the nine months of 2025 to 270%, one of the highest payouts in the industry. MCB Bank reported a Profit After Tax (PAT) of Rs. 41.10 billion, down from Rs. 48.45 billion, translating into an Earnings Per Share (EPS) of Rs. 34.68, compared with Rs. 40.88 in the corresponding period last year. Profit Before Tax (PBT) stood at Rs. 29.42 billion for the third quarter, taking the cumulative PBT for the nine months ended September 30, 2025, to Rs. 87.48 billion. The effective tax rate for the period was 53% (9M 2024: 49%), reflecting the increase in corporate tax rates for banking companies enacted in late 2024. On a consolidated basis, the Bank posted a PBT of Rs. 94.88 billion. These results highlight MCB’s prudent balance sheet management, consistent focus on core operations, and strong risk governance practices. Net interest income declined by 5.8% year-on-year, primarily due to monetary easing. However, this was partially offset by the Bank’s continued emphasis on low-cost deposit mobilization, which delivered 29% growth in current deposits on an absolute basis and 21% on average. Non-markup income stood at Rs. 26.0 billion, down 3.1% year-on-year. Fee and commission income dropped 15% to Rs. 13.98 billion, mainly due to intense competition in home remittances. Foreign exchange income grew 5% to Rs. 7.9 billion, while dividend income rose 30% to Rs. 3.2 billion. MCB’s digital banking segment maintained strong momentum, with card-related income rising 18% and branch banking fee income increasing 14%, supported by higher transaction volumes and customer engagement. Operating expenses increased 14.6% year-on-year, reflecting ongoing investments in technology, workforce development, and brand-building initiatives. Despite the higher cost base, the Bank maintained a cost-to-income ratio of 37.65%, underscoring its focus on efficiency and disciplined expense management. MCB’s total assets rose 20% to Rs. 3.23 trillion, driven by a 72% increase in net investments. Gross advances declined 38%, reflecting a cautious lending approach. Asset quality remained sound, with non-performing loans (NPLs) at Rs. 50 billion, an infection ratio of 7.35%, and a coverage ratio of 92.24%. Deposits reached Rs. 2.23 trillion, supported by a record increase of Rs. 272 billion in current deposits, reaffirming the Bank’s strength in cost-effective deposit mobilization. The domestic cost of deposits fell sharply to 5.01%, from 10.47% in the same period last year. The Bank reported a Return on Assets (RoA) of 1.85% and a Return on Equity (RoE) of 23.50%, while the Book Value per Share improved to Rs. 201.85. MCB maintained its leading position in the home remittance segment, processing USD 3,437 million, up 7.6% from the previous year. Leveraging its vast branch network and expanding digital infrastructure, the Bank continues to play a key role in supporting the State Bank of Pakistan’s financial inclusion and formal remittance initiatives. The Bank’s capital and liquidity remained strong, with a Capital Adequacy Ratio (CAR) of 19.88% and a Common Equity Tier-1 (CET1) ratio of 15.37%, both well above regulatory requirements. The Liquidity Coverage Ratio (LCR) stood at 267.46% and the Net Stable Funding Ratio (NSFR) at 163.92%. PACRA reaffirmed MCB’s credit ratings at ‘AAA’ (long-term) and ‘A1+’ (short-term) on June 23, 2025. Despite a challenging macroeconomic environment, MCB Bank remains well-positioned for sustainable growth, supported by its robust capital base, strong liquidity, and disciplined risk management framework. The Bank continues to focus on operational excellence, customer-centric innovation, and long-term value creation for its stakeholders.