MCB Bank Limited reported a profit after tax of Rs54.2 billion for the year ending December 31, 2025, but faced a 2% year-on-year decline in its net interest income due to a nationwide interest rate easing cycle.
The bank’s board, chaired by Mian Mohammad Mansha, also announced a final cash dividend of Rs9.0 per share, concluding the year with one of the industry’s highest total payouts.
The financial results for 2025 show a profit before tax (PBT) of Rs115.5 billion, translating into earnings per share (EPS) of Rs45.73. On a consolidated basis, the PBT reached Rs125.1 billion.
The final dividend declaration of 90% brings the total cash distribution for the year to 360%, building upon the 270% already disbursed to shareholders.
The bank’s net interest income contracted by 2% despite healthy growth in earning assets, as higher volumes were counteracted by yield compression in the lower interest rate environment. Non-markup income also registered a 4% fall to Rs. 35.8 billion.
Within its non-markup streams, fee and commission earnings fell 9% to Rs. 19.3 billion, a decrease primarily attributed to heightened competition in the home remittance segment. This was partly offset by an 11% rise in foreign exchange income to Rs. 10.2 billion and a substantial 45% growth in dividend income, which amounted to Rs. 5.1 billion.
Positive momentum was observed across the bank”s digital channels, with card-related income climbing by 18%. Branch and consumer banking fee incomes expanded by 13% and 16% respectively, spurred by increased customer activity and a higher uptake of financing products.
Operating expenses rose by 12% during the year, a reflection of continued investments in technology, talent development, and brand-building. The institution maintained a cost-to-income ratio of 37.73%.
The institution”s balance sheet expanded significantly, with total assets growing by 20% to reach Rs. 3.25 trillion, propelled by a 67% increase in net investments. Total deposits concluded the year at Rs. 2.26 trillion, bolstered by a record Rs. 274 billion surge in current deposits.
This strategic shift towards no-cost funds, combined with the lower policy rate, slashed the domestic cost of deposits to 4.88% from 9.98% in the previous corresponding year. The bank reported a Return on Assets (RoA) of 1.82% and a Return on Equity (RoE) of 23.02%.
Asset quality remained sound with non-performing loans (NPLs) recorded at Rs. 49.8 billion. The bank’s infection ratio stood at 6.76% with a coverage ratio of 92.47%.
MCB retained an 11% market share in home remittances, processing inflows of approximately USD 4.4 billion during the year.
Capital and liquidity positions remained well above regulatory minimums. The Capital Adequacy Ratio (CAR) stood at 19.53%, while the Liquidity Coverage Ratio (LCR) was 267.35%. In June 2025, the Pakistan Credit Rating Agency (PACRA) reaffirmed the bank”s long-term “AAA” and short-term “A1+” ratings.