Lahore, April 23, 2026 — MCB Bank Limited has announced a resilient financial performance for the quarter ended March 31, 2026, delivering strong profitability, improved margins, and sustained balance sheet strength despite a challenging macroeconomic environment.
The Board of Directors, chaired by Mian Mohammad Mansha, approved the quarterly financial results and declared a first interim cash dividend of Rs. 9.00 per share (90%), reaffirming the bank’s consistent commitment to shareholder returns.
MCB reported a profit before tax (PBT) of Rs. 26.7 billion and a profit after tax (PAT) of Rs. 12.8 billion, with earnings per share (EPS) recorded at Rs. 10.80. On a consolidated basis, profit before tax stood at Rs. 27.9 billion.
Strong Core Income Growth
Net interest income rose 9% year-on-year to Rs. 38.2 billion, supported by growth in low-cost deposits and improved yield optimization. The bank noted that this represents its highest quarterly net interest income in six quarters, reflecting strong funding structure and core earnings resilience.
Non-markup income remained stable at Rs. 8.5 billion, supported by strong performance in fee-based services and digital banking. Fee and commission income grew 13% year-on-year to Rs. 5.9 billion, driven by increased transaction volumes and expanding digital adoption.
Within this segment:
- Card income increased by 15%
- Consumer banking fees surged by 32%
- Branch banking fees rose by 6%
Foreign exchange and dividend income contributed a combined Rs. 2.52 billion to total non-markup income.
Cost Control and Efficiency
Operating expenses increased 9% year-on-year due to continued investment in technology, human capital, and branding initiatives. Despite this, the bank maintained a cost-to-income ratio of 39.59%, reflecting disciplined expense management alongside strategic expansion.
Balance Sheet Strength
MCB’s total assets rose to Rs. 3.263 trillion, while advances increased by Rs. 59 billion (8%), indicating improved credit demand. The investment portfolio stood at Rs. 1.932 trillion.
Deposits remained strong at Rs. 2.3 trillion, with the current account mix improving to 56%, reinforcing the bank’s low-cost deposit base. This helped reduce the domestic cost of deposits to 4.14%, compared to 5.51% in the same period last year.
Asset Quality and Risk Management
Asset quality indicators remained stable, with non-performing loans (NPLs) reported at Rs. 50 billion. The infection ratio improved to 6.29%, while coverage increased to 94.51%, reflecting prudent risk management and recovery efforts.
Strong Capital and Liquidity Position
MCB maintained a robust capital base with:
- Capital Adequacy Ratio (CAR): 18.70%
- CET1 ratio: 14.87%
- Liquidity Coverage Ratio (LCR): 239.90%
- Net Stable Funding Ratio (NSFR): 155.79%
These metrics remain well above regulatory requirements, highlighting strong financial stability.
Remittances and Market Position
The bank retained a leading position in Pakistan’s remittance sector with a 9.6% market share, processing USD 1.01 billion in inflows during the quarter. Leveraging its extensive branch network and digital channels, MCB continues to support financial inclusion and foreign exchange stability.
The bank’s credit ratings were reaffirmed at ‘AAA’ for long-term and ‘A1+’ for short-term by PACRA, underscoring its strong credit profile.
MCB Bank, operating one of the country’s largest branch networks with over 1,700 branches, stated that it remains focused on sustainable growth, digital transformation, and customer-centric innovation while maintaining disciplined risk management.
