MCB Bank Reports Strong Half-Year Earnings, Announces 90% Interim Dividend
Pakistan’s leading lender posts resilient first-half results, driven by higher income, stronger deposits and continued digital banking growth.
MCB Bank announces strong half-year financial results and a 90% interim cash dividend.
LAHORE, Aug. 6: MCB Bank has reported a resilient financial performance for the first half of 2026, supported by strong fundamentals, disciplined execution and a robust balance sheet despite a challenging economic environment. The Bank also announced a second interim cash dividend of Rs. 9 per share (90%), taking the cumulative dividend payout for the year to Rs. 18 per share (180%), reflecting its strong capital position and commitment to shareholder returns.
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The Board of Directors, chaired by Mian Mohammad Mansha, approved the financial results for the six months ended June 30, 2026, highlighting steady earnings growth and continued investment in long-term business expansion.
MCB Bank
The Bank posted a Profit Before Tax (PBT) of Rs. 55.1 billion and Profit After Tax (PAT) of Rs. 26.5 billion, translating into Earnings Per Share (EPS) of Rs. 22.34. On a consolidated basis, PBT reached Rs. 58.8 billion, while PAT stood at Rs. 28.1 billion.
Total income increased by 6% year-on-year to Rs. 93.9 billion, primarily driven by growth in net markup income, which rose to Rs. 75.3 billion. The improvement was supported by a larger low-cost deposit base and effective yield optimisation despite a lower average policy rate compared with the previous year.
Non-markup income also recorded solid growth, rising 7% to Rs. 18.7 billion. Fee and commission income climbed 21% to Rs. 11.9 billion, reflecting strong momentum in digital banking services and increased transaction volumes. Card-related income grew by 13%, while consumer banking fee income surged 27% as customer activity and demand for consumer financing products continued to strengthen. Foreign exchange and dividend income contributed Rs. 4.1 billion and Rs. 2.1 billion, respectively.
Operating expenses increased 9% year-on-year due to continued investment in technology, employee development and brand enhancement. Despite these investments, the Bank maintained a healthy cost-to-income ratio of 39.20%, demonstrating disciplined cost management and operational efficiency.
MCB’s balance sheet remained strong, with total assets increasing to Rs. 3.43 trillion from Rs. 3.247 trillion at the end of 2025. Gross advances rose by Rs. 67 billion (9%), while the investment portfolio expanded to Rs. 2.067 trillion.
Asset quality also improved, with non-performing loans (NPLs) standing at Rs. 50.3 billion. The infection ratio improved to 6.26%, while the coverage ratio strengthened to 93.13%, reflecting proactive credit risk management and effective recovery efforts.
Total deposits reached Rs. 2.604 trillion, with the current account mix improving to 55%, reinforcing the Bank’s low-cost funding base. The domestic cost of deposits declined to 4.43%, benefiting from lower interest rates. The Bank reported a Return on Assets (ROA) of 1.59% and Return on Equity (ROE) of 21.49%.
MCB also retained its position among Pakistan’s leading home remittance banks, processing USD 2.27 billion in remittance inflows during the period and capturing a 10.38% market share. The Bank said its nationwide branch network and expanding digital channels continue to support financial inclusion and formal remittance flows in line with the State Bank of Pakistan’s objectives.
Capital and liquidity indicators remained comfortably above regulatory requirements. The Capital Adequacy Ratio (CAR) stood at 19.65%, while the Common Equity Tier-1 (CET1) ratio reached 14.93%. Liquidity also remained strong, with a Liquidity Coverage Ratio (LCR) of 233.41% and a Net Stable Funding Ratio (NSFR) of 161.14%.
The Pakistan Credit Rating Agency (PACRA) reaffirmed MCB Bank’s long-term rating at ‘AAA’ and short-term rating at ‘A1+’, reflecting the Bank’s strong financial profile and stability.
With a network of more than 1,700 branches across Pakistan, MCB Bank said it remains well positioned to sustain long-term growth through a strong capital base, diversified revenue streams, disciplined risk management and continued investment in customer-focused innovation.
