LAHORE: The board of directors of MCB Bank reviewed and approved the bank’s financial statements for the year ended December 31, 2025. The bank recorded a profit before tax (PBT) of Rs115.5 billion and a profit after tax of Rs54.2 billion, translating into earnings per share of Rs45.73. On a consolidated basis, PBT stood at Rs125.1 billion.
The board declared a final cash dividend of Rs9 for the last quarter ended December 2025. Net interest income declined by 2.0 per cent year-on-year (YoY). While the bank delivered healthy growth in earning assets, the impact of higher volumes was largely offset by yield compression in the declining interest rate environment. The bank’s no-cost deposit base strengthened, with current deposits increasing by 29 per cent on an absolute basis and 22 per cent on an average basis.
Non-mark-up income amounted to Rs35.8 billion, reflecting a 4.0 per cent YoY decline. Fee and commission income decreased by 9.0 per cent to Rs19.3 billion. Foreign exchange income increased by 11 per cent to Rs10.2 billion, while dividend income registered strong growth of 45 per cent to Rs5.1 billion.
Card-related income increased by 18 per cent YoY. Branch banking fee income rose by 13 per cent, while consumer banking fee income grew by 16 per cent. Operating expenses increased by 12 per cent YoY, primarily reflecting continued investments in technology. The bank maintained a healthy cost-to-income ratio of 37.73 per cent.
Total assets grew by 20 per cent to Rs3.25 trillion, driven mainly by a 67 per cent increase in net investments. Asset quality remained sound, with non-performing loans (NPLs) of Rs49.8 billion, a coverage ratio of 92.47 per cent, and an infection ratio of 6.76 per cent.
Deposits closed at Rs2.26 trillion, underpinned by a historic increase of Rs274 billion in current deposits. This favourable shift in the deposit mix, coupled with the decline in the policy rate, resulted in a significant reduction in the domestic cost of deposits to 4.88 percent, compared with 9.98 percent in the corresponding year. The bank reported a return on assets (RoA) of 1.82 per cent and a return on equity (RoE) of 23.02 per cent, while book value per share improved to Rs205.59.
MCB Bank processed $4,398 million in remittance inflows during the year. The capital adequacy ratio (CAR) stood at 19.53 per cent and the Common Equity Tier-1 (CET1) ratio at 14.38 per cent, well above the minimum regulatory requirements. MCB’s credit ratings were reaffirmed by the Pakistan Credit Rating Agency (Pacra) at ‘AAA’ for long-term and ‘A1+’ for short-term through its notification dated June 23, 2025.
