Higher net interest and fee income offset by rising operating expenses as bank declares total interim dividend of Rs18 per share.
KARACHI, August 7, 2026: MCB Bank Limited reported a decline of more than 4% in its consolidated profit after tax for the first half of calendar year 2026, despite recording growth in net interest income and non-funded income, according to financial results submitted to the Pakistan Stock Exchange (PSX).
The bank posted a profit after tax of Rs28 billion for the six-month period ended June 30, 2026, compared with Rs29.23 billion in the corresponding period of 2025, representing a decline of approximately 4.2%.
Earnings per share (EPS) also eased to Rs23.61, down from Rs24.67 in the first half of last year.
Rs18 Per Share Interim Dividend
The Board of Directors, at its meeting held on August 6, 2026, approved a second interim cash dividend of Rs9 per share (90%) for the half-year ended June 30, 2026.
The latest payout is in addition to the first interim cash dividend of Rs9 per share already distributed, bringing the total interim dividend for the first half of 2026 to Rs18 per share (180%).
Core Banking Income Strengthens
Despite the decline in overall profitability, MCB Bank recorded solid growth in its core banking business.
Net mark-up and interest income increased to Rs82.36 billion during the first six months of 2026, compared with Rs78.96 billion in the corresponding period a year earlier.
The bank also reported robust growth in non-funded income, with fee and commission income rising to Rs14.85 billion from Rs12.31 billion, reflecting stronger transaction banking and fee-based activities.
As a result, total income climbed to Rs104.34 billion, compared with Rs98.89 billion in the first half of 2025.
Higher Operating Costs Weigh on Earnings
The improvement in income was offset by a rise in operating expenses, which increased to Rs44.84 billion during the period, up from Rs40.29 billion a year earlier.
Meanwhile, the bank’s income tax expense declined to Rs30.74 billion, compared with Rs33.16 billion in the corresponding period of 2025, partially mitigating the impact of higher costs on net earnings.
Second-Quarter Performance Remains Stable
For the quarter ended June 30, 2026, MCB Bank reported a profit after tax of Rs14.87 billion, marginally higher than the Rs14.58 billion earned in the same quarter last year.
The quarterly performance indicates that the bank maintained stable earnings momentum despite softer profitability on a half-year basis.
Outlook
The first-half results reflect MCB Bank’s continued ability to generate growth in its core banking operations through higher net interest income and stronger fee-based revenues. However, rising operating expenses and other earnings pressures weighed on overall profitability, leading to a modest decline in first-half earnings. The declaration of a total interim cash dividend of Rs18 per share underscores the bank’s continued commitment to delivering value to shareholders while maintaining a strong capital position.