{"id":4740,"date":"2025-04-25T13:09:45","date_gmt":"2025-04-25T08:09:45","guid":{"rendered":"https:\/\/pkfin.kotenterprises.dev\/?p=4740"},"modified":"2025-04-25T13:09:45","modified_gmt":"2025-04-25T08:09:45","slug":"mcb-bank-posts-rs-13-8-billion-profit-in-q1-2025","status":"publish","type":"post","link":"https:\/\/pkfin.kotenterprises.dev\/?p=4740","title":{"rendered":"MCB Bank Posts Rs 13.8 Billion Profit in Q1 2025"},"content":{"rendered":"

LAHORE<\/strong> \u2013 MCB Bank Limited (MCB)<\/a> announced its financial results for the first quarter ended March 31, 2025, following a meeting of its Board of Directors chaired by Mian Mohammad Mansha. The Board approved the condensed interim financial statements and declared a first interim cash dividend of Rs 9.0 per share (90%), reaffirming its commitment to consistent shareholder returns.<\/p>\n

MCB posted a Profit Before Tax (PBT)<\/strong> of Rs 29.3 billion and Profit After Tax (PAT)<\/strong> of Rs 13.8 billion, translating into Earnings Per Share (EPS)<\/strong> of Rs 11.65. On a consolidated basis, the bank recorded a PBT of Rs 31.6 billion, underscoring a strong focus on core banking fundamentals and a disciplined risk management<\/a> approach.<\/p>\n

While net interest income saw a 7.6% year-on-year decline due to margin compression amid normalization in interest rates, non-markup income remained resilient at Rs 9.2 billion<\/strong>, up slightly from Rs 9.1 billion in the same period last year. Fee and commission income stood at Rs 5.3 billion, with foreign exchange<\/a> income and dividend income contributing Rs 2.2 billion and Rs 1.7 billion, respectively.<\/p>\n

Despite a 22% year-on-year increase in operating expenses<\/strong>\u2014driven by investments in talent, technology, and marketing\u2014the bank maintained a strong cost-to-income ratio of 38.23%, reflecting prudent financial management and continued investment in innovation and efficiency.<\/p>\n

MCB\u2019s total assets surged 17%<\/strong> over December 2024 to reach Rs 3.2 trillion<\/strong>. This was primarily driven by a 56% increase in net investments<\/strong> (Rs 658 billion), even as gross advances declined by Rs 284 billion (-26%) amid a cautious lending strategy in response to evolving macroeconomic conditions.<\/p>\n

The Bank achieved a major milestone, with current account deposits crossing Rs 1 trillion<\/strong>, raising the Current Account (CA) ratio to 51%. Total deposits stood at Rs 2.09 trillion, a 9% increase from the previous quarter, boosting MCB\u2019s domestic<\/a> market share to 6.04%<\/strong> from 5.74%. The domestic cost of deposits dropped significantly to 5.51%<\/strong>, compared to 10.70% in Q1 2024, aiding margin preservation.<\/p>\n

Key performance metrics reflected continued strength, with Return on Assets (ROA)<\/strong> at 1.88% and Return on Equity (ROE)<\/strong> at 24.12%. Book value per share<\/strong> stood at Rs 194.82.<\/p>\n

MCB also reinforced its leadership in the remittance space, processing $1,169 million<\/strong> in home remittance inflows during Q1 2025\u2014a robust 31% year-on-year growth<\/strong>\u2014in line with the State Bank of Pakistan\u2019s drive to promote formal remittance channels.<\/p>\n

The Bank\u2019s asset quality remained strong, with Non-Performing Loans (NPLs)<\/strong> at Rs 53.5 billion. The coverage ratio<\/strong> stood at 94.13%, while the infection ratio<\/strong> was 6.61%, highlighting effective credit risk governance.<\/p>\n

MCB sustained a solid capital position, with a Capital Adequacy Ratio (CAR)<\/strong> of 19.10% and Common Equity Tier-1 (CET1)<\/strong> ratio of 15.32%\u2014well above regulatory requirements. The Leverage Ratio<\/strong> was 6.18%, and liquidity remained robust, with a Liquidity Coverage Ratio (LCR)<\/strong> of 252.37% and Net Stable Funding Ratio (NSFR)<\/strong> of 139.24%.<\/p>\n

The Pakistan Credit Rating Agency (PACRA)<\/strong> reaffirmed MCB\u2019s creditworthiness, maintaining the Bank\u2019s long-term and short-term ratings at \u2018AAA<\/strong>\u2019 and \u2018A1+<\/strong>\u2019, respectively, as per its June 22, 2024 notification.<\/p>\n

Despite a challenging economic backdrop, MCB Bank reaffirmed its dedication to long-term stakeholder value through sound financial management, customer-centric digital transformation, and operational excellence.<\/p>\n","protected":false},"excerpt":{"rendered":"

LAHORE – MCB Bank Limited (MCB) announced its financial results for the first quarter ended March 31, 2025, following a meeting of its Board of Directors chaired by Mian Mohammad Mansha. The Board approved the condensed interim financial statements and declared a first interim cash dividend of Rs 9.0 per share (90%), reaffirming its commitment […]<\/p>\n","protected":false},"author":1,"featured_media":3181,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_FSMCFIC_featured_image_caption":"","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","footnotes":""},"categories":[1299],"tags":[],"class_list":["post","format-standard"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t