The Biz Update One of Pakistan's Most Reliable Business News Website
Related Articles
Lahore ,August 7, 2025: MCB Bank Limited (MCB) announced a strong performance for the first half of 2025, delivering a Profit Before Tax (PBT) of Rs. 58.06 billion and declaring a second interim cash dividend of 90% (Rs. 9.00 per share). Combined with the earlier dividend, the total payout for H1 2025 reaches 180%.
The bank’s Profit After Tax (PAT) stood at Rs. 27.31 billion, translating into earnings per share of Rs. 23.04, compared to Rs. 26.95 in H1 2024. The decline reflects a 4% rise in effective tax rate over the previous year. On a consolidated basis, MCB reported PBT of Rs. 62.5 billion.
While net interest income declined 5% due to margin compression from the policy rate cut, the bank’s strategic push towards no-cost current deposits drove a 27% increase in current deposits, partially offsetting the pressure on margins.
Non-markup income slipped by 4% to Rs. 17.5 billion, mainly due to a 13% drop in fee and commission income, driven by tough competition in the remittance business. However, foreign exchange income remained stable, and dividend income surged by 55% to Rs. 2.6 billion. Digital banking gains boosted card-related income by 18%.
Operating expenses rose 18%, attributed to investments in technology, marketing, and talent, but the bank maintained a healthy cost-to-income ratio of 38.05%, demonstrating disciplined financial management.
On the balance sheet front, total assets rose 25% to Rs. 3.38 trillion, backed by a 78% rise in investments. However, gross advances dropped 36%, reflecting a cautious approach amid macroeconomic uncertainty. Asset quality remained strong, with non-performing loans at Rs. 52 billion and a coverage ratio of 91.71%.
MCB’s deposit base reached Rs. 2.23 trillion, including a record Rs. 256 billion surge in current deposits, lowering the domestic cost of deposits to 5.23%, a sharp decline from 10.76% in the same period last year.
The bank recorded a Return on Assets of 1.80% and Return on Equity of 23.66%, with Book Value per Share at Rs. 197.84. MCB also processed USD 2.3 billion in home remittances, a 16.7% increase year-on-year, supporting the State Bank’s drive for financial inclusion.
MCB maintained a Capital Adequacy Ratio of 19.61% and CET1 of 15.26%, well above regulatory requirements. Its Liquidity Coverage Ratio stood at 260.71% and Net Stable Funding Ratio at 155.73%. PACRA reaffirmed MCB’s credit ratings at ‘AAA’ long-term and ‘A1+’ short-term as of June 23, 2025.
With a strong balance sheet, digital momentum, and prudent risk governance, MCB remains well-positioned for sustained growth, emphasizing innovation, customer-centricity, and stakeholder value creation.
