MCB Bank Limited (PSX: MCB) reported a resilient financial performance for the first half of 2026, posting a profit after tax of Rs26.5 billion while announcing a second interim cash dividend of 90%, reflecting the bank’s strong capital position and consistent shareholder returns.
The financial results, approved by the Board of Directors under the chairmanship of Mian Mohammad Mansha, cover the six-month period ended June 30, 2026.
The bank declared a second interim cash dividend of Rs9 per share (90%), taking the cumulative cash dividend for 2026 to Rs18 per share (180%).
Earnings per share (EPS) stood at Rs22.34, while consolidated profit before tax reached Rs58.8 billion and consolidated profit after tax amounted to Rs28.1 billion.
MCB Bank Reports Higher Income Despite Challenging Environment
MCB Bank generated total income of Rs93.9 billion during the first half of 2026, marking a 6% increase compared with the corresponding period last year.
Net markup income increased to Rs75.3 billion from Rs71.3 billion in the same period of 2025, supported by growth in low-cost deposits and effective yield optimisation despite a lower average policy rate.
Non-markup income also recorded healthy growth, rising 7% year-on-year to Rs18.7 billion.
Fee and commission income increased by 21% to Rs11.9 billion, driven by stronger digital banking activity and higher transaction volumes.
Within fee income:
- Card-related income increased by 13%.
- Branch banking fee income rose by 5%.
- Consumer banking fee income surged 27%.
Foreign exchange income contributed Rs4.1 billion, while dividend income added Rs2.1 billion during the reporting period.
Operating Expenses Rise as Bank Invests in Growth
Operating expenses increased by 9% year-on-year as MCB continued investing in technology, human capital and brand development.
Despite higher costs, the bank maintained a cost-to-income ratio of 39.20%, reflecting continued operational efficiency and disciplined expense management.
Balance Sheet Continues to Expand
MCB Bank’s total assets increased to Rs3.43 trillion compared with Rs3.247 trillion at the end of 2025.
Gross advances grew by Rs67 billion, representing a 9% increase, while the investment portfolio expanded to Rs2.067 trillion from Rs1.947 trillion.
Customer deposits reached Rs2.604 trillion.
The current account mix improved to 55%, compared with 54% at year-end 2025, helping reduce the domestic cost of deposits to 4.43% from 5.23% a year earlier.
Asset Quality Remains Strong
The bank maintained satisfactory asset quality during the period.
Non-performing loans (NPLs) stood at Rs50.3 billion, while the infection ratio improved to 6.26%.
The coverage ratio also strengthened to 93.13%, reflecting continued focus on recoveries and prudent credit risk management.
Strong Capital and Liquidity Position
MCB Bank continued to maintain capital and liquidity levels well above regulatory requirements.
Key financial ratios include:
- Capital Adequacy Ratio (CAR): 19.65%
- Common Equity Tier-1 (CET1): 14.93%
- Liquidity Coverage Ratio (LCR): 233.41%
- Net Stable Funding Ratio (NSFR): 161.14%
The bank reported a Return on Assets (ROA) of 1.59% and Return on Equity (ROE) of 21.49%.
Digital Banking and Remittance Business Continue to Grow
MCB maintained its position among Pakistan’s leading banks in home remittances, processing USD2.27 billion during the first half of 2026.
The bank captured a market share of 10.38% in inward remittances, supported by its nationwide branch network and expanding digital banking channels.
Officials said the bank continues to support the State Bank of Pakistan’s financial inclusion initiatives while contributing to the country’s foreign exchange inflows.
PACRA Reaffirms AAA Rating
MCB Bank’s long-term credit rating was reaffirmed at AAA and its short-term rating at A1+ by the Pakistan Credit Rating Agency (PACRA) on June 23, 2026.
The bank currently operates more than 1,700 branches on a consolidated basis and remains among the largest and most capitalised banking institutions listed on the Pakistan Stock Exchange.
Looking ahead, management said the bank remains well positioned for sustainable growth, supported by a strong capital base, ample liquidity, diversified revenue streams, disciplined risk management and continued investment in customer-focused innovation.