Lahore, February 6, 2025 – MCB Bank Limited has announced strong financial results for the year ended December 31, 2024, reflecting another year of robust growth and solid performance.
The Board of Directors, led by Chairman Mian Mohammad Mansha, approved the bank’s annual financial statements and declared a final cash dividend of PKR 9.0 per share, equating to a 90% dividend for the year. This brings the total cash dividend for 2024 to an impressive 360%, including the 270% already paid during the year.
For the year ended December 31, 2024, MCB Bank reported a profit before tax (PBT) of PKR 118.4 billion, with a profit after tax (PAT) of PKR 57.6 billion, resulting in earnings per share (EPS) of PKR 48.62. The bank’s outstanding performance is attributed to its diversified revenue streams, stable core earnings, and effective cost optimization strategies. On a consolidated basis, PBT reached PKR 131.2 billion, showcasing MCB Bank’s ability to generate solid returns across its various business segments.
Despite challenges such as a negative spread on savings deposits in the latter half of the year, MCB Bank posted a modest 1% year-on-year growth in net interest income. Non-markup income saw a remarkable 14% increase, rising to PKR 37.4 billion. This growth was driven by a 5% rise in fee and commission income, an 8% increase in foreign exchange income, a 15% surge in dividend income, and a notable gain of PKR 3.1 billion from securities. MCB Bank also witnessed significant growth in fee-based income, with a 32% increase in card-related income, an 18% rise in branch banking fees, and a 61% jump in investment service commissions.
In line with its commitment to innovation, MCB Bank continued its digital transformation initiatives to enhance customer experiences and operational efficiency, which supported broad-based growth across digital platforms. Operating expenses rose by 18% primarily due to higher staff costs, marketing, utilities, and IT-related expenses. However, the bank maintained an efficient cost-to-income ratio of 32.68%, reflecting disciplined financial management.
On the asset quality front, MCB Bank’s strong credit risk management led to non-performing loans (NPLs) totaling PKR 53.5 billion by year-end 2024, with an improved coverage ratio of 99.34% and an infection ratio of 4.89%. Total assets grew by 11%, reaching PKR 2.7 trillion, further demonstrating the bank’s solid financial foundation.
MCB Bank’s deposit base also saw healthy growth, with total deposits increasing by PKR 116.8 billion. The bank’s focus on building low-cost deposits paid off, as current deposits rose by 8.4%, bringing the total current deposit base to PKR 944 billion. The bank’s CASA (Current Account Savings Account) ratio improved to 97.24% compared to 96.81% in 2023.
During 2024, MCB Bank made notable strides in the remittance sector, attracting home remittance inflows of USD 4,592 million, a 41% increase from the previous year. This improvement boosted the bank’s market share to 13.2%, further consolidating its position in the national effort to enhance the flow of remittances through formal banking channels.
MCB Bank also maintained strong capital adequacy, with a Capital Adequacy Ratio (CAR) of 19.35%, well above the regulatory requirement. The bank’s Common Equity Tier-1 (CET1) ratio stood at 15.49%, and its Leverage Ratio was 6.37%, both surpassing regulatory limits. The bank also reported a robust Liquidity Coverage Ratio (LCR) of 241.33% and a Net Stable Funding Ratio (NSFR) of 128.29%, further demonstrating its financial resilience.
The Pakistan Credit Rating Agency reaffirmed MCB Bank’s credit ratings at “AAA / A1+” for long-term and short-term, respectively, underscoring the bank’s financial stability and strength. Additionally, MCB Bank’s exceptional performance in trade finance was recognized by the Asian Development Bank (ADB) at its 10th Annual Trade and Supply Chain Finance Program (TSCFP) awards in Singapore, where the bank received accolades for its leadership in supporting local businesses in international trade.
MCB Bank’s commitment to excellence was also acknowledged when its annual report for 2023 was named the best in the Banking Category by ICAP and ICMA. This award highlights MCB’s dedication to transparency and governance practices.
With a network of over 1,700 branches across Pakistan, MCB Bank continues to be a significant player in the country’s financial landscape, remaining one of the most capitalized and actively traded stocks in the local equity market. The bank’s continued growth and financial strength position it well for future success in Pakistan’s dynamic banking sector.