Karachi, February 7, 2025 – MCB Bank has announced robust financial results for the year 2024, marking a significant milestone in its continued growth trajectory. The bank posted a Profit Before Tax (PBT) of PKR 118.4 billion and a Profit After Tax (PAT) of PKR 57.6 billion for the year ended December 31, 2024, translating into earnings per share (EPS) of PKR 48.62. These results reflect MCB’s ability to navigate economic challenges while ensuring sustainable growth.
The bank’s strong financial performance was largely attributed to its stable core earnings base, diversified revenue streams, cost optimization strategies, and a strong risk management framework. On a consolidated basis, MCB reported a PBT of PKR 131.2 billion, demonstrating the success of its integrated approach to business growth.
One of the key contributors to the bank’s growth was its non-markup income, which saw an impressive 14% year-on-year increase, reaching PKR 37.4 billion. This growth was driven by a range of factors, including a 5% increase in fee and commission income to PKR 21.2 billion, an 8% rise in foreign exchange income to PKR 9.2 billion, and a 15% surge in dividend income, which reached PKR 3.5 billion. Additionally, MCB recorded gains on securities amounting to PKR 3.1 billion. The bank’s diversification in revenue sources has enabled it to continue its upward trajectory, even amid the challenges of a volatile market.
In terms of fee-based income, MCB saw impressive growth across multiple channels. Card-related income surged by 32%, branch banking fees increased by 18%, and investment service commissions jumped by 61%. This robust performance is a testament to MCB’s strategic focus on expanding its non-interest income base while simultaneously enhancing customer experiences and operational efficiency through its ongoing digital transformation efforts.
Operating expenses, however, saw an 18% increase, mainly due to higher staff costs, marketing, utilities, and IT-related expenses. Despite this, the bank maintained an efficient cost-to-income ratio of 32.68%, reflecting disciplined financial management while continuing to invest in innovation and talent development.
The bank’s emphasis on asset quality remained a priority in 2024. MCB’s strong credit risk management resulted in a stable non-performing loan (NPL) position of PKR 53.5 billion at year-end, with improved coverage and infection ratios of 99.34% and 4.89%, respectively. This solid risk management approach ensured that MCB’s financial position remained strong and resilient.
On the balance sheet front, MCB’s total assets reached PKR 2.7 trillion, marking an 11% increase over the previous year. The bank’s strategic deposit mobilization efforts, particularly focusing on no-cost deposits, resulted in a growth of PKR 116.8 billion in its deposit base. Current deposits increased by 8.4%, reaching PKR 944 billion, and the bank improved its Current Account Savings Account (CASA) ratio to 97.24%, up from 96.81% at the end of 2023.
MCB’s performance also extended to its capital strength, with the bank reporting a Capital Adequacy Ratio (CAR) of 19.35%, well above the regulatory requirement of 11.5%. Its Common Equity Tier-1 (CET1) ratio stood at 15.49%, far exceeding the required 6.0%, while the Leverage Ratio was 6.37%, also above the regulatory limit of 3.0%. These figures underscore MCB’s solid capitalization, which has enabled it to maintain a strong liquidity position, with a Liquidity Coverage Ratio (LCR) of 241.33% and a Net Stable Funding Ratio (NSFR) of 128.29%.
In recognition of its stellar performance, MCB received accolades from the Asian Development Bank (ADB) at its 10th Annual Trade and Supply Chain Finance Program (TSCFP) awards in Singapore. The bank was honored with the ‘Leading Partner Bank in Pakistan’ award and the ‘Momentum Award – Issuing Bank,’ highlighting its pivotal role in supporting local businesses through international trade solutions.
MCB’s Annual Report 2023 was also lauded for excellence in governance and corporate transparency, earning the top spot in the Banking Category and being named the overall winner in all categories by the Joint Evaluation Committee of ICAP & ICMA.
As of December 31, 2024, MCB operates the second-largest branch network in Pakistan, with over 1,700 branches. It remains one of the most capitalized and traded stocks in the local equity market, solidifying its position as a key player in the country’s banking sector.
In conclusion, MCB Bank’s strong financial performance in 2024 underscores its resilience and ability to adapt to market conditions. With a diversified income base, strategic investments in digital transformation, and robust risk management, the bank is well-positioned to continue its growth trajectory in the coming years.