MCB Bank Limited reported consolidated earnings per share of PKR 49.29 in CY25, down 8% from PKR 53.35 in CY24. This translates into profit after tax of PKR 58.8 Bn compared to PKR 63.5 Bn in SPLY. The bank declared a dividend of PKR 36 per share in CY25, in line with PKR 36 in CY24.
Total income in CY25 reached PKR 205.4 Bn against PKR 211.6 Bn in CY24, a decrease of 3%. This was primarily driven by a 4% drop in net mark-up income from PKR 168 Bn in CY24 to PKR 161 Bn in CY25. The bank saw its total deposits rise from PKR 2.1 Trn at the end of CY24 to PKR 2.5 Trn at the end of CY25, an increase of 19%.
This was driven by a 29% growth in current account deposits. The CASA ratio now stands at 97.4%. Investments stood at PKR 2.1 Trn at the end of CY25, up 61% from PKR 1.3 Trn at the end of CY24. Management highlighted that out of its PIB portfolio, 25% is in fixed rate instruments with weighted average yield of 12.62% and a duration of 2.28 years while 75% of the book is in variable rate instruments.
The bank’s cost to income ratio for CY25 stood at 40% compared to 34% in CY24. Moving forward, the management expects this to stabilize below 40%. Capital Adequacy Ratio stood at 19.5% at end Dec-25, up from 19.4% at the end of CY24. Moving forward, the management believes that the policy rate has bottomed out and it is possible that SBP will hike the rate in its upcoming MPC meeting given secondary market yields have already risen substantially in anticipation.
Important Disclosures
Disclaimer: This report has been prepared by Chase Securities Pakistan (Private) Limited and is provided for information purposes only. Under no circumstances, this is to be used or considered as an offer to sell or solicitation or any offer to buy. While reasonable care has been taken to ensure that the information contained in this report is not untrue or misleading at the time of its publication, Chase Securities makes no representation as to its accuracy or completeness and it should not be relied upon as such. From time to time, Chase Securities and/or any of its officers or directors may, as permitted by applicable laws, have a position, or otherwise be interested in any transaction, in any securities directly or indirectly subject of this report Chase Securities as a firm may have business relationships, including investment banking relationships with the companies referred to in this report This report is provided only for the information of professional advisers who are expected to make their own investment decisions without undue reliance on this report and Chase Securities accepts no responsibility whatsoever for any direct or indirect consequential loss arising from any use of this report or its contents At the same time, it should be noted that investments in capital markets are also subject to market risks This report may not be reproduced, distributed or published by any recipient for any purpose.