Lahore: MCB Bank Limited has reported a resilient financial performance for the fiscal year ending December 31, 2025, demonstrating strategic agility and disciplined execution in a challenging economic environment. The Board of Directors, chaired by Mian Mohammad Mansha, approved the financial statements, declaring a final cash dividend of Rs. 9.0 per share, culminating in a total cash dividend payout ratio of 360% for the year.
According to MCB Bank Limited, the bank recorded a profit before tax of Rs. 115.5 billion and a profit after tax of Rs. 54.2 billion, which translates to earnings per share of Rs. 45.73. On a consolidated basis, the profit before tax stood at Rs. 125.1 billion. Despite a 2% year-on-year decline in net interest income due to an interest rate easing cycle, the bank's strategic focus on no-cost deposits bolstered earnings sustainability. Current deposits increased by 29% on an absolute basis, positioning the bank favorably for future margin normalization.
Non-markup income declined by 4% to Rs. 35.8 billion, with fee and commission income decreasing by 9%. However, foreign exchange income rose by 11%, and dividend income surged by 45%. The bank's digital banking ecosystem saw increased customer adoption, with card-related income rising by 18% year-on-year.
Operating expenses grew by 12% due to investments in technology and talent development, yet the bank maintained a cost-to-income ratio of 37.73%. Total assets increased by 20% to Rs. 3.25 trillion, primarily driven by a 67% rise in net investments. Asset quality remained stable, with non-performing loans at Rs. 49.8 billion.
The bank's deposits closed at Rs. 2.26 trillion, supported by a historic increase in current deposits. The domestic cost of deposits significantly reduced to 4.88% from 9.98% the previous year. MCB Bank reported a Return on Assets of 1.82% and Return on Equity of 23.02%, with Book Value per Share improving to Rs. 205.59.
MCB maintained a strong position in the home remittance market, processing USD 4,398 million in remittance inflows and contributing to financial inclusion initiatives. The bank's capital adequacy ratio stood at 19.53%, with a Common Equity Tier-1 ratio of 14.38%. Liquidity buffers were robust, reflected in a Liquidity Coverage Ratio of 267.35% and a Net Stable Funding Ratio of 163.71%. Credit ratings from the Pakistan Credit Rating Agency were reaffirmed at 'AAA' for long-term and 'A1+' for short-term.
MCB Bank operates over 1,700 branches, making it the second-largest branch network in Pakistan. Looking ahead, the bank aims for sustainable growth, focusing on operational excellence and customer-centric innovation.