Lahore: MCB Bank Limited has reported strong earnings for the first quarter of 2025, showcasing its resilience amid economic challenges. The bank's Board of Directors, led by Chairman Mian Mohammad Mansha, approved the financial statements for the quarter ending March 31, 2025, declaring a cash dividend of Rs. 9.0 per share, maintaining a 90% payout ratio.

The bank reported a Profit Before Tax (PBT) of Rs. 29.3 billion and a Profit After Tax (PAT) of Rs. 13.8 billion, translating to Earnings Per Share (EPS) of Rs. 11.65. On a consolidated basis, the PBT stood at Rs. 31.6 billion, highlighting the bank's prudent financial management and focus on core banking fundamentals.

Despite a 7.6% decline in net interest income due to margin compression, non-markup income increased slightly to Rs. 9.2 billion from the previous year. Fee and commission income totaled Rs. 5.3 billion, while foreign exchange and dividend income contributed Rs. 2.2 billion and Rs. 1.7 billion, respectively. MCB's investment in digital channels bolstered customer experience and efficiency.

Operating expenses rose by 22% year-on-year, driven by investments in talent and technology, yet the cost-to-income ratio remained efficient at 38.23%. The bank's total assets increased by 17% to Rs. 3.2 trillion, led by a 56% rise in net investments, although gross advances decreased by 26%.

MCB achieved a milestone with current account deposits surpassing Rs. 1 trillion, raising the CA ratio to 51%. Deposits reached Rs. 2.09 trillion, enhancing MCB’s market share to 6.04% from 5.74% at the end of 2024. The cost of deposits fell to 5.51% from 10.70% in Q1 2024.

The bank reported a return on assets (ROA) of 1.88% and a return on equity (ROE) of 24.12%, with a book value per share of Rs. 194.82. MCB recorded USD 1,169 million in remittance inflows, a 31% increase year-on-year, supporting financial inclusion efforts.

Asset quality remained stable with Non-Performing Loans (NPLs) at Rs. 53.5 billion, and a coverage ratio of 94.13%. MCB's capital position was strong, with a Capital Adequacy Ratio (CAR) of 19.10% and a Common Equity Tier-1 (CET1) ratio of 15.32%.

The Pakistan Credit Rating Agency reaffirmed MCB's long-term and short-term credit ratings at 'AAA' and 'A1+', respectively. MCB Bank continues to focus on stakeholder value through financial stewardship and innovation.