LAHORE – MCB Bank Limited (MCB) announced its financial results for the first quarter ended March 31, 2025, following a meeting of its Board of Directors chaired by Mian Mohammad Mansha. The Board approved the condensed interim financial statements and declared a first interim cash dividend of Rs 9.0 per share (90%), reaffirming its commitment to consistent shareholder returns.
MCB posted a Profit Before Tax (PBT) of Rs 29.3 billion and Profit After Tax (PAT) of Rs 13.8 billion, translating into Earnings Per Share (EPS) of Rs 11.65. On a consolidated basis, the bank recorded a PBT of Rs 31.6 billion, underscoring a strong focus on core banking fundamentals and a disciplined risk management approach.
While net interest income saw a 7.6% year-on-year decline due to margin compression amid normalization in interest rates, non-markup income remained resilient at Rs 9.2 billion, up slightly from Rs 9.1 billion in the same period last year. Fee and commission income stood at Rs 5.3 billion, with foreign exchange income and dividend income contributing Rs 2.2 billion and Rs 1.7 billion, respectively.
Despite a 22% year-on-year increase in operating expenses—driven by investments in talent, technology, and marketing—the bank maintained a strong cost-to-income ratio of 38.23%, reflecting prudent financial management and continued investment in innovation and efficiency.
MCB’s total assets surged 17% over December 2024 to reach Rs 3.2 trillion. This was primarily driven by a 56% increase in net investments (Rs 658 billion), even as gross advances declined by Rs 284 billion (-26%) amid a cautious lending strategy in response to evolving macroeconomic conditions.
The Bank achieved a major milestone, with current account deposits crossing Rs 1 trillion, raising the Current Account (CA) ratio to 51%. Total deposits stood at Rs 2.09 trillion, a 9% increase from the previous quarter, boosting MCB’s domestic market share to 6.04% from 5.74%. The domestic cost of deposits dropped significantly to 5.51%, compared to 10.70% in Q1 2024, aiding margin preservation.
Key performance metrics reflected continued strength, with Return on Assets (ROA) at 1.88% and Return on Equity (ROE) at 24.12%. Book value per share stood at Rs 194.82.
MCB also reinforced its leadership in the remittance space, processing $1,169 million in home remittance inflows during Q1 2025—a robust 31% year-on-year growth—in line with the State Bank of Pakistan’s drive to promote formal remittance channels.
The Bank’s asset quality remained strong, with Non-Performing Loans (NPLs) at Rs 53.5 billion. The coverage ratio stood at 94.13%, while the infection ratio was 6.61%, highlighting effective credit risk governance.
MCB sustained a solid capital position, with a Capital Adequacy Ratio (CAR) of 19.10% and Common Equity Tier-1 (CET1) ratio of 15.32%—well above regulatory requirements. The Leverage Ratio was 6.18%, and liquidity remained robust, with a Liquidity Coverage Ratio (LCR) of 252.37% and Net Stable Funding Ratio (NSFR) of 139.24%.
The Pakistan Credit Rating Agency (PACRA) reaffirmed MCB’s creditworthiness, maintaining the Bank’s long-term and short-term ratings at ‘AAA’ and ‘A1+’, respectively, as per its June 22, 2024 notification.
Despite a challenging economic backdrop, MCB Bank reaffirmed its dedication to long-term stakeholder value through sound financial management, customer-centric digital transformation, and operational excellence.
