AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Lahore: MCB Bank Limited announced a profit before tax of Rs. 58.06 billion for the first half of 2025, as the Board of Directors declared a second interim cash dividend of 90%, according to a press release issued on Thursday. This brings the total cash dividend for the period to 180%.
The profit after tax was Rs. 27.31 billion, translating to earnings per share of Rs. 23.04, a decrease from Rs. 26.95 in the same period last year. The decline in net profitability is attributed to a 4% rise in the effective tax rate.
Net interest income fell by 5% year-on-year, which the bank attributed to margin compression after a policy rate cut. However, a strategic push in no-cost deposit mobilization led to a 27% increase in current deposits.
Non-markup income saw a 4% decrease, with fee and commission income dropping by 13% due to competition in foreign currency remittance channels. Despite this, dividend income rose by 55% and card-related income increased by 18%.
Operating expenses grew by 18% year-on-year, driven by investments in talent, technology, and marketing. The bank maintained a cost-to-income ratio of 38.05%. Total assets increased by 25% to Rs. 3.38 trillion, reflecting a 78% growth in investments, while gross advances fell by 36%.
MCB Bank’s deposits grew to Rs. 2.23 trillion, aided by a record Rs. 256 billion increase in current deposits. This shift reduced the domestic cost of deposits to 5.23%, down from 10.76% in the prior year.
The bank processed USD 2,303 million in home remittances, marking a 16.7% increase. It maintained a strong capital position with a Capital Adequacy Ratio of 19.61% and Common Equity Tier-1 at 15.26%.
MCB’s credit ratings were reaffirmed at ‘AAA’ for long-term and ‘A1+’ for short-term by the Pakistan Credit Rating Agency. The bank remains focused on digital transformation and operational excellence, despite external challenges.