Karachi: MCB Bank has reported a 34% increase in its consolidated earnings for the fourth quarter of 2025, with earnings per share (EPS) reaching Rs11.9. This growth marks a year-over-year rise but fell short of industry expectations. The bank's total earnings for 2025 stood at Rs58.4 billion, reflecting an 8% decline from the previous year.

According to JS Global, the bank's fourth-quarter results were impacted by higher operating expenses, leading to a 7% decrease in quarterly earnings. Net Interest Income for the quarter was Rs41 billion, showing a 5% increase year-over-year but remaining stable compared to the previous quarter. Meanwhile, Non-Interest Income dropped by 7% year-over-year to Rs11.2 billion, primarily due to reduced capital gains on investments, although it increased by 10% from the previous quarter due to higher dividend income.

The bank's share of profit from associates was recorded at Rs598 million, a decrease of 27% compared to the same period last year and 42% from the preceding quarter. MCB's cost to income ratio rose to 41.4% in the fourth quarter of 2025, up from 39.0% in the same quarter the previous year. Provision expenses for the quarter were Rs292 million, significantly lower than the Rs4 billion recorded in the fourth quarter of 2024, and a reversal of Rs1.2 billion in the third quarter of 2025.

The bank's effective tax rate for the fourth quarter of 2025 was 53%, down from 61% in the same period last year. In conjunction with the earnings report, MCB announced a dividend of Rs9 per share, aligning with expectations and bringing the total dividend for 2025 to Rs36 per share. The bank's stock is currently evaluated with a buy recommendation, trading at a projected 2026 price-to-earnings ratio of 7.9x and a price-to-book value ratio of 1.5x, with a dividend yield of 9%.