Karachi: MCB Bank Limited has had its entity ratings maintained, reflecting a stable financial profile, as announced by The Pakistan Credit Rating Agency Limited. The bank has showcased a robust deposit franchise, solid capitalization, and consistent earnings generation, despite operating in a lower interest rate environment throughout CY25.

According to The Pakistan Credit Rating Agency Limited, MCB Bank Limited's total deposits rose to PKR 2.26 trillion, marking a year-on-year growth of PKR 339 billion. Current deposits notably increased by PKR 274 billion, improving the CASA mix and reducing the domestic cost of deposits to 4.88%. The bank's low-cost funding profile is buoyed by effective customer acquisition strategies, customer relationship enhancement, and the reactivation of dormant accounts.

The bank has also made significant strides in its digital banking efforts, with its MCB Live platform expanding to over 1.9 million registered users, processing transactions totaling over PKR 3.2 trillion annually, an 86% increase year-on-year. This indicates growing customer engagement and adoption of digital channels, aligning with the bank's focus on digital innovation for customer convenience and operational efficiency.

MCB Bank Limited sustained its leadership in the home remittances segment, handling USD 4.4 billion in inflows during CY25, although its market share slightly decreased to 10.9% from 13.3% the previous year. The bank's involvement in this segment continues to support remittance flows, contributing to the stability of Pakistan's external accounts.

The bank's total assets increased to PKR 3,247.1 billion in CY25, driven mainly by a substantial rise in its investment portfolio to PKR 1,947.2 billion. This reflects a strategic focus on government securities and other high-quality, low-risk assets, aligning with industry trends. Despite a 34% contraction in net advances to PKR 690.3 billion, MCB Bank's capital position remains robust, with a Capital Adequacy Ratio of 19.5%, a Common Equity Tier-1 ratio of 14.4%, and a Liquidity Coverage Ratio of 267.3%.

Overall, MCB Bank Limited's ratings are supported by its strong franchise, resilient funding base, and prudent balance sheet management, positioning it well in a dynamic industry environment.