Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the entity ratings of MCB Islamic Bank Limited, affirming its strategic advancements in the Islamic banking sector. As a subsidiary of MCB Bank Limited, the bank has focused on network expansion and technology investments to fortify its presence in the market.

MCB Islamic Bank has seen a rise in its Advances-to-Deposits Ratio to 58.6% by the end of December 2024, a significant increase from 44.3% the previous year. This growth is largely attributed to attracting new customers, despite its relatively small size in the banking landscape.

The bank’s deposits have grown to PKR 190 billion in the fiscal year 2024, maintaining a stable market share of 0.7%. The conversion of 39 conventional MCB branches into Islamic branches has further supported this deposit mobilization.

Financially, the bank reported a Profit Before Tax of Rs. 9.11 billion for the year ending December 2024, down from Rs. 11 billion the previous year. The equity base has strengthened to PKR 25.9 billion, and the Capital Adequacy Ratio stands at 20.5%, well above the regulatory requirement.

MCB Islamic Bank’s focus remains on sustainable profitability through efficient capital management and superior asset quality. The bank is also upgrading its technology to align with industry standards.

PACRA’s rating reflects strong parent support, a stable deposit base, and solid capital adequacy, although potential challenges in asset quality could impact profitability.