MCB Bank reports Rs41.1bn profit

LAHORE: The board of directors of MCB Bank Limited (MCB) declared a third interim cash dividend of Rs9 per share, bringing the total cash dividend for the nine months of 2025 to 270 per cent, a statement said on Wednesday.

MCB reported a profit before tax (PBT) of Rs29.42 billion for the third quarter of 2025, taking cumulative PBT for the nine months ended September 30, 2025 to Rs87.48 billion. Profit after tax (PAT) stood at Rs41.1 billion, translating into earnings per share (EPS) of Rs34.68, compared to Rs40.88 in the corresponding period last year.

Net interest income declined by 5.8 per cent year-on-year (YoY), reflecting the impact of monetary easing. However, this was partially offset by the bank’s strategic focus on low-cost deposit mobilisation, which delivered a robust 29 per cent growth in current deposits.

Non-markup income stood at Rs26 billion, marking a 3.1 per cent decline compared with the same period last year. Fee and commission income fell by 15 per cent to Rs13.98 billion, while foreign exchange income rose 5.0 per cent to Rs7.9 billion. Dividend income jumped 30 per cent to Rs3.2 billion, card-related income grew 18 per cent, and branch banking fee income increased 14 per cent YoY.

Operating expenses rose 14.6 per cent year-on-year. Despite this planned expansion in the cost base, the bank maintained a healthy cost-to-income ratio of 37.65 per cent. On the balance sheet side, total assets grew by 20 per cent to Rs3.23 trillion, driven by a 72 per cent increase in net investments, while gross advances declined by 38 per cent. Asset quality remained sound, with non-performing loans reported at Rs50 billion, reflecting an infection ratio of 7.35 per cent and a coverage ratio of 92.24 per cent.

Deposits closed at Rs2.23 trillion, supported by a record increase of Rs272 billion in current deposits, reaffirming the bank’s strength in cost-efficient deposit mobilisation. The bank reported a return on assets (RoA) of 1.85 per cent and a return on equity (RoE) of 23.5 per cent, while the book value per share improved to Rs201.85.

MCB maintained its strong position in the home remittance segment, processing $3,437 million during the nine-month period, an increase of 7.6 per cent over the corresponding period last year.

The capital adequacy ratio (CAR) stood at 19.88 percent and the Common Equity Tier-1 (CET1) ratio at 15.37 per cent, both comfortably above the minimum regulatory requirements. The Pakistan Credit Rating Agency (Pacra) reaffirmed MCB’s credit ratings at ‘AAA’ for the long term and ‘A1+’ for the short term in its notification dated June 23, 2025.