Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the entity ratings of MCB Bank Limited, highlighting its expanding deposit base, strengthening core earnings, and growing market presence. The ratings underscore the Bank’s improved asset quality, made possible by its evolving risk management framework, and a strategic emphasis on mobilizing low-cost and no-cost deposits.

MCB Bank reported an 8.4% year-on-year growth in current deposits, reaching PKR 944.0 billion in CY24, supported by a well-defined strategy and enhanced service quality. The Bank has focused on onboarding new customers, deepening existing relationships, and reactivating dormant accounts to sustain deposit momentum.

The Bank’s profit before tax stood at PKR 118.4 billion, supported by a healthy buildup in core earnings. Total assets increased by 11% year-on-year to PKR 2.70 trillion. Although net investments decreased by 7%, gross performing advances saw an 83% rise, driven by improved credit demand.

MCB Bank’s net interest income experienced a modest growth of 1% to PKR 149 billion, despite inflationary challenges. The Bank effectively managed its operating expenses, which rose by 17.6%. Its credit quality remained robust, with efforts to reduce delinquencies across various segments.

Internationally, MCB continued to expand, notably opening a second branch in Sharjah through MCB UAE. The Bank’s home remittance inflows increased by 41% to USD 4.6 billion, enhancing its market share to 13.2%.

Amid challenges such as declining interest rates and competitive pressures, MCB has focused on expanding its trade finance business and strengthening digital banking solutions. MCB Live recorded a transaction volume of PKR 1.7 trillion in CY24. The Bank’s Capital Adequacy Ratio remained robust at 19.3%, above the regulatory threshold.

The ratings remain contingent on MCB’s ability to sustain its position in the banking sector, with stability and effective governance being critical factors.