MCB Bank Reports Rs. 12.8 Billion Profit for Q1 2026

MCB Bank Limited reported financial results for the quarter ended March 31, 2026, posting a profit after tax of Rs. 12.8 billion and announcing a first interim cash dividend of Rs. 9.00 per share, equivalent to a 90% payout.

In a statement issued on April 23, the bank said its board of directors, chaired by Mian Mohammad Mansha, reviewed and approved the financial results for the first quarter of 2026.

The bank recorded a profit before tax of Rs. 26.7 billion, while earnings per share stood at Rs. 10.80. On a consolidated basis, profit before tax was reported at Rs. 27.9 billion.

MCB said its performance was supported by strong fundamentals, disciplined execution and balance sheet strength despite a challenging macroeconomic environment.

Net interest income rose 9% year-on-year to Rs. 38.2 billion, compared with Rs. 35.2 billion in the same period last year. The bank said the increase was driven mainly by sustained growth in low-cost deposits and effective yield optimisation, despite a relatively lower average policy rate environment. It added that this was the highest quarterly net interest income reported over the past six quarters.

Non-markup income remained resilient at Rs. 8.5 billion. Fee and commission income increased 13% year-on-year to Rs. 5.9 billion, supported by continued momentum in digital banking and higher transaction volumes. Within this category, card-related income rose 15%, branch banking fee income increased 6%, and consumer banking fee income jumped 32%, reflecting stronger customer activity and greater uptake of consumer financing products. Foreign exchange income and dividend income contributed Rs. 1.384 billion and Rs. 1.137 billion, respectively.

Operating expenses increased 9% from a year earlier, which the bank attributed to continued investment in technology, human resources, talent development and brand-building initiatives. Even so, MCB’s cost-to-income ratio stood at 39.59%, indicating what it described as continued cost discipline alongside operational efficiency and innovation.

On the balance sheet side, 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%, reflecting improved credit uptake, while the investment portfolio stood at Rs. 1.932 trillion compared with Rs. 1.947 trillion at year-end 2025.

The bank said asset quality remained satisfactory, with non-performing loans reported at Rs. 50 billion. Its infection ratio and coverage ratio improved to 6.29% and 94.51%, respectively. MCB said it remained focused on proactive management of its delinquent portfolio, with emphasis on recoveries, resolution and containment of credit losses.

Deposits stood at Rs. 2.3 trillion, while the current account mix improved to 56% from 54% at the end of 2025, strengthening the bank’s low-cost deposit base. Supported by this favourable deposit mix and a lower interest rate environment, the domestic cost of deposits declined to 4.14% from 5.51% in the same quarter last year. The bank reported a return on assets of 1.57% and return on equity of 20.89%.

MCB also maintained its position in the home remittance market, holding a 9.6% market share and processing $1.011 billion in remittance inflows during the quarter. The bank said its branch network and expanding digital channels continued to support financial inclusion and formal remittance flows.

Its capital and liquidity indicators remained strong, with the capital adequacy ratio at 18.70% and the common equity tier-1 ratio at 14.87%, both above regulatory minimum requirements. Liquidity buffers were also robust, with the liquidity coverage ratio at 239.90% and the net stable funding ratio at 155.79%.

MCB’s credit ratings were reaffirmed at AAA for the long term and A1+ for the short term by the Pakistan Credit Rating Agency through a notification dated June 23, 2025.

The bank said it continues to operate the second-largest branch network in Pakistan on a consolidated basis, with more than 1,700 branches, and remains among the top capitalised bank stocks listed on the Pakistan Stock Exchange.