The Board of Directors of MCB Bank Limited (MCB) approved the condensed interim financial statements for the nine months ended September 30, 2025.
Chaired by Mian Mohammad Mansha, the BoDs declared a third interim cash dividend of Rs 9 per share (90 per cent). It is in addition to the 180pc dividend paid earlier, bringing the total cash dividend for the nine months of 2025 to 270pc, one of the highest payouts in the industry.
MCB Bank reported a Profit Before Tax (PBT) of Rs29.42 billion for the third quarter, taking cumulative PBT for the nine months 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.
The effective tax rate for the period was 53%, reflecting an increase in the corporate tax rate for banking companies, enacted in the last quarter of 2024. On a consolidated basis, the Bank posted a PBT of Rs94.88 billion.
Net Interest Income:
Net interest income declined by 5.8pc on a year-on-year basis, primarily reflecting the impact of monetary easing. However, this effect was partially offset by the Bank’s strategic emphasis on no-cost deposit mobilisation, which delivered a robust 29pc growth in current deposits on an absolute and 21pc on an average basis.
Non-markup income stood at Rs26 billion, reflecting a decline of 3.1pc over the corresponding period last year. Fee and commission income decreased by 15% to Rs13.98 billion, primarily due to intensified competition in the home remittances business.
Foreign exchange income recorded a 5pc growth to Rs7.9 billion, while dividend income rose sharply by 30pc to Rs3.2 billion. The Bank continued to benefit from sustained momentum in its digital banking franchise, supported by growing customer adoption of electronic channels and payment solutions.
Card-related income grew by 18pc year-on-year, driven by higher transaction volumes and enhanced product offerings, while branch banking fee income rose by 14pc on the back of higher customer engagement and improved cross-sell activity.
Operating expenses increased by 14.6% year-on-year, reflecting the Bank’s continued investment in technology, talent development and brand-building initiatives. Despite this planned expansion in the cost base, the Bank maintained a healthy cost-to-income ratio of 37.65pc.
Balance Sheet:
On the balance sheet side, MCB Bank’s total assets grew by 20pc to Rs3.23 trillion, driven by a 72pc increase in net investments. Gross advances declined by 38pc, reflecting a cautious lending approach. Asset quality remained strong, with non-performing loans reported at Rs50 billion, an infection ratio of 7.35pc, and a coverage ratio of 92.24pc.
Deposits closed at Rs2.23 trillion, supported by a historic increase of Rs272 billion in current deposits. This favourable shift in deposit coupled with a decline in the policy rate, led to a significant reduction in the domestic cost of deposits to 5.01pc, compared to 10.47pc in the corresponding period of 2024.
The Bank reported a Return on Assets (RoA) of 1.85pc and Return on Equity (RoE) of 23.50pc, while the Book Value per Share improved to Rs 201.85.
MCB processed $3,437 million remittances during the nine months, an increase of 7.6pc over the corresponding period last year.
