MCB Bank Limited has announced a profit after tax of Rs. 27.31 billion for the first half of 2025, reflecting its ongoing commitment to robust financial performance and strategic balance sheet management. The Board of Directors, chaired by Mian Mohammad Mansha, approved the condensed interim financial statements in a meeting and declared a second interim cash dividend of Rs. 9.00 per share (90%), bringing the total dividend payout to 180% for the six-month period ended June 30, 2025.
The Bank reported a profit before tax of Rs. 58.06 billion, while the consolidated profit before tax reached Rs. 62.5 billion. Despite a slight year-on-year dip in net profitability—partly due to a 4% increase in the effective tax rate—MCB demonstrated financial resilience in the face of macroeconomic headwinds and sector-wide competition. Earnings per share stood at Rs. 23.04, compared to Rs. 26.95 during the same period last year.
Net interest income recorded a 5% year-on-year decline, attributed to margin compression following the downward revision in the policy rate. However, the Bank successfully mitigated this impact by prioritizing no-cost deposit mobilization, which led to a significant 27% growth in current account deposits. This strategic focus helped bring down the domestic cost of deposits to 5.23% from 10.76% a year earlier.
Non-markup income dropped by 4%, totaling Rs. 17.5 billion. Fee and commission income declined by 13%, mainly due to increased competition in routing foreign currency remittances. Nonetheless, MCB saw a 55% increase in dividend income, which rose to Rs. 2.6 billion, and card-related income improved by 18%, highlighting the success of its digital banking initiatives. Foreign exchange income remained stable at Rs. 4.9 billion.
Operating expenses grew by 18%, driven by investment in talent, marketing, and technology infrastructure. Despite the increase, the cost-to-income ratio was maintained at a healthy 38.05%, reflecting operational efficiency and careful financial discipline.
On the asset side, MCB Bank’s total assets increased by 25% to Rs. 3.38 trillion, bolstered by a 78% rise in investments. Gross advances decreased by 36% as the Bank adopted a conservative lending strategy amidst ongoing economic uncertainty. Asset quality remained strong, with non-performing loans at Rs. 52.0 billion, an infection ratio of 7.42%, and a coverage ratio of 91.71%.
The Bank’s deposits grew to Rs. 2.23 trillion, supported by a record Rs. 256 billion surge in current deposits. Return on Assets (RoA) was recorded at 1.80%, and Return on Equity (RoE) at 23.66%, while the Book Value per Share stood at Rs. 197.84.
MCB continued to be a major player in the remittance market, processing USD 2,303 million in home remittances during H1 2025—a 16.7% increase compared to the same period last year. This aligns with the State Bank of Pakistan’s broader efforts to promote formal remittance channels and financial inclusion nationwide.
The Bank maintained a strong capital position, with a Capital Adequacy Ratio (CAR) of 19.61% and Common Equity Tier-1 (CET1) ratio of 15.26%. Liquidity also remained solid, with a Liquidity Coverage Ratio (LCR) of 260.71% and a Net Stable Funding Ratio (NSFR) of 155.73%. Credit ratings were reaffirmed by PACRA at ‘AAA’ for long-term and ‘A1+’ for short-term as of June 23, 2025.
Looking forward, MCB Bank remains strategically aligned toward long-term value creation. Its focus on core banking operations, digital transformation, and financial stability ensures that it continues to be a key pillar in Pakistan’s evolving banking landscape.