MCB Bank Limited has announced its financial results for the quarter ended March 31, 2026, posting a profit after tax of Rs. 12.8 billion and declaring a first interim cash dividend of Rs. 9 per share, equal to a 90 percent payout.
According to a statement issued on April 23, the bank’s board of directors, chaired by Mian Mohammad Mansha, approved the first-quarter results.
The bank reported profit before tax of Rs. 26.7 billion, while earnings per share came in at Rs. 10.80. On a consolidated basis, profit before tax stood at Rs. 27.9 billion.
MCB said its performance was supported by strong fundamentals, disciplined execution, and a solid balance sheet despite challenging economic conditions.
Net interest income increased 9 percent year-on-year to Rs. 38.2 billion, compared with Rs. 35.2 billion in the same period last year. The bank attributed the growth to rising low-cost deposits and better yield management despite lower average policy rates.
This marked MCB’s highest quarterly net interest income in the last six quarters.
Non-markup income remained stable at Rs. 8.5 billion. Fee and commission income rose 13 percent to Rs. 5.9 billion, supported by growth in digital banking and higher transaction activity.
Card-related income increased 15 percent, branch banking fees rose 6 percent, while consumer banking fee income jumped 32 percent due to stronger customer activity and increased financing demand.
Foreign exchange income contributed Rs. 1.384 billion, while dividend income stood at Rs. 1.137 billion.
Operating expenses rose 9 percent year-on-year as the bank continued investing in technology, staff development, and branding. However, the cost-to-income ratio remained healthy at 39.59 percent.
Total assets increased to Rs. 3.263 trillion from Rs. 3.247 trillion at the end of 2025.
Advances grew by Rs. 59 billion, or 8 percent, reflecting better credit demand. The investment portfolio stood at Rs. 1.932 trillion, slightly lower than Rs. 1.947 trillion recorded at year-end 2025.
MCB said asset quality remained strong, with non-performing loans at Rs. 50 billion. Its infection ratio improved to 6.29 percent, while coverage ratio reached 94.51 percent.
Deposits stood at Rs. 2.3 trillion. The current account mix improved to 56 percent from 54 percent, strengthening the bank’s low-cost deposit base.
Due to this improved deposit mix and lower interest rates, domestic cost of deposits declined to 4.14 percent from 5.51 percent a year earlier.
The bank reported return on assets of 1.57 percent and return on equity of 20.89 percent.
MCB also maintained a strong position in home remittances, capturing a 9.6 percent market share and processing $1.011 billion in inflows during the quarter.
Capital and liquidity levels remained strong, with capital adequacy ratio at 18.70 percent and common equity tier-1 ratio at 14.87 percent, both above regulatory requirements.
The liquidity coverage ratio stood at 239.90 percent, while the net stable funding ratio was 155.79 percent.
MCB’s credit ratings remain AAA for long-term and A1+ for short-term by PACRA.
The bank said it continues to operate Pakistan’s second-largest branch network with over 1,700 branches and remains one of the most capitalized banking stocks listed on the Pakistan Stock Exchange.
