AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: MCB Bank, during its recent Corporate Briefing Session, announced its strategy to focus on increasing current account deposits in response to a significant 1,000 basis points decline in interest rates. The bank is also reallocating its investment portfolio, with 22% dedicated to fixed Pakistan Investment Bonds (PIBs) and nearly 67% invested in Treasury Bills and floating PIBs.
According to a statement by JS Global, the profitability of MCB’s Islamic banking segment saw an 18% year-on-year decline to Rs4.2 billion in the calendar year 2024. This decrease was primarily attributed to a 34% year-on-year rise in non-mark-up expenses. In an effort to expand its Islamic banking operations, MCB plans to open 200 additional branches, increasing its total to 500 within the next three years.
Despite the recent interest rate reductions, MCB’s solid capital adequacy ratio (CAR) of 19.35%—well above the 11.5% minimum requirement—suggests the bank may have the capacity to enhance its dividend payouts. The bank is currently highlighted as a notable dividend yield opportunity, offering an annual yield of 13%.