MCB Bank Limited reported consolidated earnings per share of PKR 12.54 in 2QCY26, up 2% from PKR 12.31 in 2QCY25. This translates into profit after tax of PKR 15.0 Bn compared to PKR 14.7 Bn in SPLY. The bank declared a dividend of PKR 9 per share in 2QCY26, in line with PKR 9 in 2QCY25. Total income in 2QCY26 reached PKR 53.7 Bn against PKR 50.0 Bn in 2QCY25, an increase of 7%.
This was primarily driven by a 28% rise in non-mark-up income from PKR 10.1 Bn in 2QCY25 to PKR 13.0 Bn in 2QCY26. The bank saw its total deposits rise from PKR 2.5 Trn at the end of CY25 to PKR 2.9 Trn at the end of 2QCY26, an increase of 16%. This was driven by an 18% growth in current account deposits.
The CASA ratio now stands at 95.9%. Moving forward, the company expects PKR 200-250 Bn in deposits to be added in 2HCY26 followed by 15% growth in CY27. Investments stood at PKR 2.2 Trn at the end of 2QCY26, up 7% from PKR 2.1 Trn at the end of CY25. Management highlighted that out of its investment portfolio, 21% is in fixed rate instruments with weighted average yield of 12.52% and a duration of 1.91 years while 70% of the book is in variable rate instruments. The bank’s cost to income ratio for 2QCY26 stood at 42% compared to 40% in SPLY.
Moving forward, the management expects this to stabilize below 40%. Capital Adequacy Ratio stood at 19.65% at end Jun-26, up from 19.5% at the end of CY25. Moving forward, the management believes that the policy rate has will remain at the level for the remainder of CY26. It expects that rate cuts may materialize in 1HCY27 if commodity prices do not rise further. Along with this, the management expects enhanced rates to begin enhancing profitability as the asset book reprices in 2HCY26.
Important Disclosures
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