Karachi: MCB Bank has reported a 2% year-on-year increase in its earnings per share (EPS) for the second quarter of 2026, reaching Rs12.5. The bank's consolidated earnings stood at Rs14.9 billion, marking a 13% rise from the previous quarter. This development brings the total earnings for the first half of 2026 to Rs28.0 billion, reflecting a 4% decline compared to the same period last year.

According to JS Global, the results surpassed expectations due to a significant rise in non-interest income, which grew by 29% year-on-year and 23% quarter-on-quarter, totaling Rs12.1 billion. This increase was largely driven by higher fee and foreign exchange income. Meanwhile, net interest income for the quarter was Rs41 billion, showing a 2% year-on-year increase but a 2% decline from the previous quarter.

The bank's non-interest expenses rose by 12% year-on-year to Rs23 billion, leading to a slight improvement in its cost to income ratio, which dropped to 42.8% from 43.2% in the first quarter. Additionally, MCB recorded a provision reversal of Rs544 million for the quarter, a decrease from Rs1.8 billion in the same quarter of the previous year.

The effective tax rate for MCB stood at 51.6% for the quarter, a slight decrease from the previous year's 52.7%. On the balance sheet, the bank saw an 18% year-on-year increase in deposits, reaching Rs2.9 trillion, while investments grew by 1% year-on-year to Rs2.2 trillion. Advances remained unchanged at Rs0.9 trillion.

MCB also declared a dividend of Rs9 per share, aligning with expectations, and bringing the total dividend for the first half of the year to Rs18 per share. The bank's stock is currently trading at a forward price-to-earnings ratio of 8.2x and a price-to-book value ratio of 1.5x, with a dividend yield of 9%.