MCB Bank Limited plans to expand its retail banking network by opening 40 new branches during calendar year 2026, with 13 locations already added during the first half of the year. The expansion is part of the bank’s strategy to strengthen current account mobilisation and increase its deposit base, as management maintains its base-case expectation that the State Bank of Pakistan’s policy rate will remain stable at 11.5% through the remainder of calendar year 2026.
Speaking during MCB Bank’s first half calendar year 2026 corporate briefing, the bank’s executive leadership said it expects interest rate stability to continue through June 2027 under its base-case scenario. Management currently projects the State Bank of Pakistan’s policy rate to remain unchanged at 11.5% for the rest of calendar year 2026. The bank is also targeting further growth in deposits during the second half of the year. Management expects to add between Rs200 billion and Rs250 billion to its deposit base during the second half of calendar year 2026. This follows an increase of Rs342 billion in total deposits during the first half of the year, with current deposits accounting for Rs224 billion of the overall increase.
The planned branch expansion is expected to support the bank’s efforts to mobilise additional current accounts. MCB Bank has already added 13 branches during the first half of 2026 and intends to reach a total of 40 new locations during the full year. The expansion forms part of the bank’s wider retail footprint strategy as it works to strengthen its customer and deposit base.
MCB Bank also discussed the financial impact of a major regulatory change affecting home remittances. Management said the withdrawal of State Bank of Pakistan incentives for home remittance fees, effective July 1, 2026, is expected to have an estimated gross bottom-line impact of Rs7.5 billion on MCB Bank. The estimate is based on the bank’s 10% share of Pakistan’s remittance market. Despite the expected impact, the bank said it remains focused on maintaining operational efficiency. Management reiterated its target of keeping the cost-to-income ratio below the 40% threshold through expenditure discipline, while growth in fee income and net interest income is expected to support overall performance.
Digital banking activity also continued to show significant growth during the period. Registered users on MCB Live increased by 33% year-on-year to 2.2 million during the first half of calendar year 2026. The platform’s transaction processing throughput rose by 115% year-on-year, reaching Rs2.72 trillion, highlighting the continued increase in digital banking activity among the bank’s customers.
On the financial side, MCB Bank reported consolidated net profit of Rs28.10 billion for the half-year ended June 30, 2026, representing a 4% decline compared with Rs29.39 billion recorded during the corresponding period of the previous year. Alongside the results, the bank announced an interim cash dividend of Rs9 per share.
Basic and diluted earnings per share attributable to equity shareholders stood at Rs23.61 during the first half of calendar year 2026, compared with Rs24.67 in the same period of 2025. MCB Bank’s investment portfolio also expanded during the first half of the year, increasing by Rs137 billion to reach Rs2.02 trillion. Floating-rate Pakistan Investment Bonds accounted for 56% of the portfolio, while fixed-rate Pakistan Investment Bonds represented 24% and Treasury Bills accounted for 14%.
Average investment yields declined to 11.63% during the period amid lower benchmark rates. At the same time, operating expenses increased by 9% year-on-year, mainly due to annual compensation increases and the addition of 1,880 field force employees. As a result, MCB Bank’s cost-to-income ratio stood at 39.20% during the first half of calendar year 2026, remaining below the bank’s 40% target. The bank’s plans for further branch expansion, deposit mobilisation and digital banking growth are expected to remain key components of its strategy during the second half of the year.
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