Karachi, February 24, 2025 – MCB Bank has confirmed that the windfall tax issue remains sub judice before the Lahore High Court, as the bank has successfully secured a stay order.
Despite the ongoing legal proceedings, MCB Bank has proactively accounted for the potential windfall tax liability in its financial statements, according to the bank’s management. This measure has been taken to ensure transparency and financial prudence in dealing with regulatory uncertainties.
MCB Bank Limited conducted its latest conference call on Monday, addressing analysts and investors regarding its financial performance and future outlook. The key takeaways from the discussion highlighted the bank’s strategic focus on growth, digital transformation, and capital management.
The management reaffirmed MCB Bank’s strong commitment to increasing the share of current accounts within its overall deposit mix. The bank aims to elevate the proportion of current accounts to approximately 55% of total deposits, which will significantly enhance liquidity and financial stability.
Looking ahead to the fiscal year 2025, MCB Bank expects an overall deposit growth of approximately 15% to 18%. Since 2019, the bank’s total deposits have recorded a compound annual growth rate (CAGR) of 10.6%, while current account deposits have grown at an impressive CAGR of 15.3% over the same period.
In terms of investment, MCB Bank’s portfolio includes a diversified mix of financial instruments. The share of fixed and floating-rate Pakistan Investment Bonds (PIBs) stands at 22% and 60%, respectively, while Treasury Bills (T-bills) contribute 7% to the total investment portfolio. Notably, the yield on fixed PIBs currently averages 14.5%, with an average maturity period of approximately 2.7 years.
MCB Bank has also demonstrated significant progress in expanding its Islamic banking operations. Over the past year, the number of Islamic branches has grown from 244 in December 2023 to 301 in December 2024, including the conversion of 39 conventional branches. The bank has set an ambitious target to increase its Islamic branch network to 500 within the next three years.
Addressing concerns over a decline in fee income, MCB Bank’s management attributed the reduction primarily to intensified competition in the remittance sector. Furthermore, in response to growing competition from digital banks, the management emphasized that MCB Bank has consistently invested in upgrading its digital capabilities. These technological advancements will enable the bank to remain competitive and strengthen its market position amid evolving industry trends.