MCB Bank reports Rs14.7bn profit in 1Q2025, declares Rs9 dividend

KARACHI: MCB Bank Limited (MCB) announced its financial results for the first quarter of 2025, posting consolidated earnings of Rs14.7 billion, translating into earnings per share (EPS) of Rs12.36. This reflects an 18 per cent decline year-on-year (YoY) but a strong 39 per cent increase quarter-on-quarter (QoQ), in line with market expectations. In addition to the results, the board declared a first interim cash dividend of Rs9 per share, maintaining consistency with industry forecasts, said Topline Securities.

The bank’s net interest income (NII) stood at Rs39 billion, down 8.0 per cent YoY and 1.0 per cent QoQ, as asset yields declined. Meanwhile, non-interest income rose 9.0 per cent YoY to Rs10.5 billion, driven by higher foreign exchange and dividend income. However, it fell 13 per cent QoQ due to the absence of a Rs3.3 billion gain on securities recorded in the previous quarter.

Non-interest expenses increased by 21 per cent YoY, reflecting ongoing inflationary pressures, but remained flat QoQ. Consequently, the cost-to-income ratio rose to 42 per cent in 1Q2025 from 33 per cent in the same period last year.

MCB reported a notable provision reversal of Rs2.3 billion in the quarter, outperforming expectations. This compares with a provision charge of Rs4 billion in the previous quarter. The bank’s effective tax rate stood at 53 per cent, slightly higher than 49 per cent in 1Q2024 but lower than 61 per cent in 4Q2024.