MCB Bank Limited reported consolidated profit after taxation of Rs28.10 billion for the six months ended June 30, 2026, reflecting a 4.4% decline from Rs29.39 billion recorded during the corresponding period last year. Alongside the financial results, the bank’s Board of Directors declared an interim cash dividend of Rs9 per share for the half year. Basic and diluted earnings per share attributable to equity shareholders stood at Rs23.61 during the period, compared with Rs24.67 in the first half of 2025. Despite the decline in overall profit, MCB Bank recorded growth in its core net mark-up income and non-mark-up income, which helped maintain its operating performance. Total income increased by 5.5% year on year to Rs104.34 billion from Rs98.89 billion, supported by higher net mark-up income and stronger fee and commission earnings. However, increased operating expenses, a decline in the share of profit from associates and movements in credit loss provisions contributed to pressure on profit before taxation and ultimately reduced the bank’s bottom-line earnings.
Net mark-up or interest income increased by 4.3% to Rs82.36 billion during the first half of 2026 from Rs78.96 billion in the corresponding period last year. Mark-up, return or interest earned rose by 1.7% to Rs163.02 billion from Rs160.22 billion, while mark-up, return or interest expensed declined slightly by 0.7% to Rs80.66 billion from Rs81.26 billion. The improvement in the net mark-up income provided a stable foundation for the bank’s overall revenue performance. MCB Bank also recorded a 10.3% increase in total non-mark-up or interest income, which reached Rs21.98 billion compared with Rs19.93 billion previously. Fee and commission income was one of the strongest contributors, increasing 20.6% to Rs14.85 billion from Rs12.31 billion. The bank also recorded a turnaround in securities trading, reporting a net gain of Rs485 million compared with a net loss of Rs125.45 million during the corresponding period. Foreign exchange income, however, declined 10.4% to Rs4.65 billion from Rs5.19 billion, while dividend income fell 23.6% to Rs1.75 billion from Rs2.28 billion.
The increase in income was accompanied by higher operating costs during the six-month period. Operating expenses increased by 11.3% to Rs44.84 billion from Rs40.29 billion in the first half of 2025. Workers Welfare Fund expenses declined 6.5% to Rs1.16 billion from Rs1.24 billion, while other charges increased 9.9% to Rs179.58 million from Rs163.39 million. As a result, total non-mark-up or interest expenses rose 10.7% to Rs46.18 billion from Rs41.70 billion. Despite the increase in expenses, MCB Bank’s profit before credit loss allowance remained resilient, increasing 1.3% to Rs59.18 billion from Rs58.39 billion. The share of profit from associates, however, declined 14.8% to Rs1.02 billion from Rs1.20 billion. The performance at the pre-provision level indicates that stronger revenue generation was able to absorb a significant portion of the increase in operating expenses, allowing the bank to maintain a modest increase in profit before credit loss allowance.
Credit-related items and taxation subsequently placed greater pressure on the bank’s final earnings. MCB Bank recorded a net credit loss allowance and write-offs of Rs348.03 million during the first half of 2026, compared with a net reversal of Rs4.15 billion in the corresponding period last year. This movement contributed to a decline in profit before taxation, which fell 5.9% to Rs58.83 billion from Rs62.55 billion. The reduction in pre-tax profit was partly offset by a lower taxation expense. Taxation declined by 7.3% to Rs30.74 billion from Rs33.16 billion during the same period last year. The lower tax charge provided some support to the final earnings figure, although it was not sufficient to fully offset the impact of the decline in profit before taxation. Consequently, profit after taxation stood at Rs28.10 billion, down 4.4% from Rs29.39 billion. Basic and diluted earnings per share also declined by 4.3% to Rs23.61 from Rs24.67.
MCB Bank’s first-half financial performance therefore reflects a combination of stronger revenue generation and higher operating costs, alongside changes in credit loss provisions and taxation. Net mark-up income increased by 4.3%, while total non-mark-up income expanded by 10.3%, with fee and commission income and securities trading providing notable support. Total income consequently increased 5.5% to Rs104.34 billion. At the same time, operating expenses rose 11.3%, placing pressure on the bank’s cost base, while the share of profit from associates declined. The movement in credit loss allowance was also significant, as the bank recorded a Rs348.03 million charge compared with a Rs4.15 billion reversal in the previous year. Although taxation declined by 7.3%, the combined impact of these factors resulted in a 4.4% reduction in profit after taxation. Despite the lower earnings, MCB Bank declared an interim cash dividend of Rs9 per share, reflecting its continued shareholder distribution during the six-month period ended June 30, 2026.
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