Karachi, August 6, 2025 – MCB Bank has paid a record Rs33 billion in income tax during the first half of calendar year 2025 (January to June), surpassing its net profit of Rs29.39 billion for the same period, according to the consolidated financial results submitted to the Pakistan Stock Exchange (PSX).
This marks a notable increase in tax liability, even as profitability saw a dip. Compared to Rs34.59 billion in net profit recorded during the same half of the previous year, MCB Bank’s bottom line has declined in the face of a higher effective tax rate and challenging economic conditions. The bank’s profit before tax (PBT) also dropped to Rs62.55 billion in H1 2025, from Rs66.34 billion in the first half of 2024.
In a statement, MCB Bank said that its Board of Directors, chaired by Mian Mohammad Mansha, reviewed the bank’s performance and approved the condensed interim financial statements for the six months ended June 30, 2025. The board also declared a second interim cash dividend of Rs9.00 per share (90%). With a similar payout made earlier this year, the total cash dividend for H1 2025 now stands at 180%.
On an unconsolidated basis, MCB reported a PBT of Rs58.06 billion and a Profit After Tax (PAT) of Rs27.31 billion. Earnings Per Share (EPS) stood at Rs23.04, down from Rs26.95 during the same period last year. The decrease in net earnings reflects a 4% rise in the effective tax rate.
Despite the earnings pressure, MCB Bank continued to show financial resilience through prudent management of its core banking operations. The consolidated PBT of Rs62.5 billion underscores the bank’s ability to maintain stability through risk governance and strategic balance sheet structuring.
The bank’s net interest income fell by 5% year-on-year, largely due to compression in margins following a downward revision in the policy rate. However, MCB partially offset this impact by focusing on mobilizing low-cost deposits, achieving a 27% surge in current deposits.
Non-markup income also declined by 4% to Rs17.5 billion. Fee and commission income dropped 13% to Rs9.8 billion due to increased competition in foreign remittance flows. However, foreign exchange income remained steady at Rs4.9 billion, and dividend income increased sharply by 55% to Rs2.6 billion. Income from card-based transactions rose 18%, boosted by continued digital banking adoption.
Operating expenses jumped 18%, driven by investments in talent acquisition, technology upgrades, and brand-building initiatives. Even so, the bank managed to maintain its cost-to-income ratio at 38.05%, reflecting disciplined cost control.
On the balance sheet front, MCB Bank reported a 25% growth in total assets, which reached Rs3.38 trillion. A significant 78% rise in investments helped offset a 36% decline in gross advances, as the bank maintained a conservative lending stance amid macroeconomic headwinds. Asset quality remained robust, with non-performing loans standing at Rs52 billion and a healthy coverage ratio of 91.71%.
Deposits climbed to Rs2.23 trillion, supported by a historic Rs256 billion increase in current accounts. This favorable shift in the deposit mix lowered the bank’s domestic cost of deposits to 5.23%, down sharply from 10.76% a year earlier.
MCB Bank also reported a Return on Assets (RoA) of 1.80% and Return on Equity (RoE) of 23.66%, while the Book Value per Share reached Rs197.84—underscoring the institution’s focus on sustainable shareholder value.
Despite a dip in profit, MCB remains well-positioned for future growth, backed by a solid capital base, strong liquidity buffers, and continued investment in digital transformation and customer-centric innovation.