LAHORE: MCB Bank Limited has announced its financial results for the nine months ended September 30, 2026, reflecting resilient performance underpinned by strong fundamentals, disciplined execution, robust deposit mobilization, and sustained growth across key business segments amid a challenging macroeconomic environment.
The Board of Directors of MCB Bank, chaired by Mian Mohammad Mansha, reviewed and approved the Bank’s financial statements for the nine months ended September 30, 2026. The Board declared a third interim cash dividend of Rs. 9.00 per share (90%), bringing the cumulative cash dividend declared for 2026 to Rs. 27.00 per share (270%). The continued dividend distribution reflects the Bank’s strong financial position, prudent capital management, and commitment to delivering sustainable returns to shareholders.
MCB reported a Profit Before Tax (PBT) of Rs. 86.3billion and a Profit After Tax (PAT) of Rs. 41.4 billion, translating into Earnings Per Share (EPS) of Rs. 34.95. On a consolidated basis, PBT and PAT stood at Rs. 92.7 billion and Rs. 44.3 billion, respectively. The Bank reported a Return on Assets (ROA) of 1.62% and a Return on Equity (ROE) of 22.21%, reflecting the strength of its earnings base and effective deployment of financial resources.
Total income for the period stood at Rs. 144.3 billion, reflecting a 7% year-on-year increase. Net markup income increased to Rs. 114.8 billion (9M’25: Rs. 108.8 billion), supported by balance sheet growth and a lower cost of deposits resulting from sustained mobilization of current account deposits. Average current account concentration improved to 53.45% in 9M’26 from 51.28% in 9M’25, reinforcing the Bank’s low-cost funding advantage and helping offset the impact of declining yields amid a lower average policy rate of 11.07% during the period under review compared with11.56% in the corresponding period last year.
Non-markup income increased by 14% year-on-year to Rs. 29.6 billion (9M’25: Rs. 26billion), reflecting broad-based growth across key revenue streams. Fee and commission income rose by 26% to Rs. 17.6billion, driven by sustained momentum in the Bank’s digital banking franchise, higher transaction volumes, and greater customer engagement. Card-related income increased by Rs. 0.704 billion, while guarantees commission and consumer finance fees grew by Rs. 0.162 billion and Rs. 0.153 billion, respectively. Foreign exchange income, dividend income, and gains on securities further contributed Rs. 5.945 billion, Rs. 2.735 billion, and Rs. 2.893 billion, respectively, to the Bank’s non-markup income base.
Operating expenses increased by 10% year-on-year, reflecting continued investment in technology initiatives, human capital, and brand development to strengthen the Bank’s long-term growth platform. Despite these investments, MCB maintained a healthy cost-to-income ratio of 38.61%, underscoring disciplined cost management and a continued focus on operational efficiency.
On the balance sheet front, total assets increased by Rs. 336billion (10%) to Rs. 3.6 trillion at September 30, 2026, from Rs. 3.25 trillion at year-end 2025. The investment portfolio, expanded by Rs. 211 billion (10.8%) to Rs. 2.16 trillion. Gross advances increased to Rs. 819billion, supported by improved credit uptake and the Bank’s continued focus on quality lending. The consumer financing portfolio recorded robust growth of Rs. 17billion (34%). During 9M’26, MCB’s advances grew by 11%, compared with industry growth of 3%, increasing the Bank’s market share to 4.92% from 4.59% at year-end 2025.
Asset quality remained satisfactory, with non-performing loans (NPLs) declining by Rs. 0.71 billion to Rs. 49.05 billion at September 30, 2026, from Rs. 49.76 billion at year-end 2025. The infection ratio stood at 5.99%, while the coverage ratio improved to 93.53%, reflecting the Bank’s continued emphasis on prudent credit management, proactive monitoring of delinquent exposures, and disciplined risk management.
The Bank’s domestic operations delivered strong deposit mobilization during 9M’26. Total deposits increased by Rs. 447billion to Rs. 2.71 trillion at September 30, 2026, from Rs. 2.26 trillion at year-end 2025. Against industry deposit growth of 9.1%, MCB’s reported deposit growth of 22.2% strengthened its market position, with market share increasing by 65 bps to 6.03%. Current deposits grew by Rs. 181billion (15%) to Rs. 1.4 trillion, reinforcing the Bank’s focus on low-cost deposit mobilization.
MCB Bank maintained its position as one of the leading players in Pakistan’s home remittance market, with a market share of approximately 10%, processing USD 3.276 billion in remittance inflows during 9M’26. Leveraging its extensive branch network and expanding digital channels, the Bank continued to support the State Bank of Pakistan’s financial inclusion and formal remittance initiatives, contributing to foreign exchange inflows and the broader national economy.
The Bank’s capital and liquidity positions remained robust, with the Capital Adequacy Ratio (CAR) standing at 18.99% and the Common Equity Tier-1 (CET1) ratio at 14.80%, comfortably above minimum regulatory requirements. Liquidity buffers remained strong, reflected in a Liquidity Coverage Ratio (LCR) of 236.29% and a Net Stable Funding Ratio (NSFR) of 167.73%, underscoring the Bank’s capacity to meet its obligations and sustain its business operations.
MCB’s credit ratings were reaffirmed by the Pakistan Credit Rating Agency (PACRA) at ‘AAA’ for long-term and ‘A1+’ for short-term through its notification dated June 23, 2026, reflecting the Bank’s strong financial profile and established market position.
MCB Bank operates one of the largest branch networks in Pakistan on a consolidated basis, with over 1,700 branches, and continues to rank among the leading capitalized banking stocks traded on the Pakistan Stock Exchange.
Looking ahead, MCB Bank remains well-positioned to sustain its growth trajectory, supported by a strong capital base, ample liquidity, a growing deposit franchise, diversified revenue streams, and disciplined risk management. The Bank will continue to focus on strengthening customer relationships, expanding digital capabilities, enhancing operational efficiency, and delivering sustainable long-term value to its shareholders.
Copyright Business Recorder, 2026
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