MCB Bank Limited reported a profit after tax of Rs. 12.8 billion for the quarter ended March 31, 2026, and announced a first interim cash dividend of Rs. 9 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, approved the financial results for the first quarter of 2026.
The bank posted 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 came in at Rs. 27.9 billion.
MCB said the performance was driven by strong fundamentals, disciplined execution and a solid balance sheet despite a challenging macroeconomic environment.
Net interest income rose 9% year-on-year to Rs. 38.2 billion from Rs. 35.2 billion a year earlier, supported by growth in low-cost deposits and effective yield optimisation in a relatively lower policy rate environment. The bank said this was its highest quarterly net interest income in the past six quarters.
Non-markup income remained steady at Rs. 8.5 billion. Fee and commission income increased 13% to Rs. 5.9 billion, helped by growth in digital banking and higher transaction volumes. Card-related income rose 15%, branch banking fee income increased 6%, and consumer banking fee income jumped 32%. 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. Even so, MCB’s cost-to-income ratio stood at 39.59%.
Total assets rose to Rs. 3.263 trillion from Rs. 3.247 trillion at the end of 2025. Advances increased 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.
The bank said asset quality remained satisfactory, with non-performing loans at Rs. 50 billion. The infection ratio and coverage ratio improved to 6.29% and 94.51%, respectively.
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 funding base. The domestic cost of deposits fell to 4.14% from 5.51% in the same quarter last year. Return on assets was 1.57%, while return on equity stood at 20.89%.
MCB retained a 9.6% share in the home remittance market and processed $1.011 billion in remittance inflows during the quarter. The bank said its branch network and digital channels continued to support financial inclusion and formal remittance flows.
Its capital and liquidity position remained strong, with a capital adequacy ratio of 18.70% and a common equity tier-1 ratio of 14.87%, both above regulatory requirements. The liquidity coverage ratio stood at 239.90%, while the net stable funding ratio was 155.79%.
MCB’s long-term and short-term credit ratings were reaffirmed at AAA and A1+, respectively, by the Pakistan Credit Rating Agency.
The bank said it operates the second-largest branch network in Pakistan on a consolidated basis, with more than 1,700 branches, and remains among the top capitalised banking stocks listed on the Pakistan Stock Exchange.
