MCB Bank 9M profit slips to Rs44bn, declares Rs9 dividend

October 22, 2026 (MLN): Consolidated profit after taxation of MCB Bank Limited (PSX: MCB) fell 0.66% year-on-year to Rs44.33bn for the nine months ended September 30, 2026, compared with Rs44.63bn in the same period last year.

Basic and diluted earnings per share (EPS) declined 0.43% to Rs37.26 from Rs37.42 in the corresponding period last year.

Along with the results, the bank announced a third interim cash dividend of Rs9 per share (90%) for the third quarter ended September 30, 2026. This is in addition to the interim dividends of Rs18 per share (180%) already paid.

The slight decline came from higher operating expenses, a sharply smaller reversal of credit loss allowance and lower share of profit from associates. These outweighed higher net interest income and a rise in non-markup income led by a more than 3.5-fold jump in gains on securities.

Mark-up/return/interest earned grew 4.12% to Rs254.45bn from Rs244.39bn, while interest expensed rose at a slower pace of 3.19% to Rs128.19bn from Rs124.23bn. Net mark-up/return/interest income increased 5.08% to Rs126.26bn from Rs120.16bn.

Fee and commission income rose 23.30% to Rs21.96bn from Rs17.81bn, and gain on securities (net) climbed more than 3.5-fold to Rs2.93bn from Rs819.52m. Foreign exchange income fell 18.19% to Rs6.82bn from Rs8.34bn, dividend income declined 13.63% to Rs2.35bn from Rs2.72bn, and other income dropped 23.34% to Rs373.10m from Rs486.69m. Income from derivatives fell 68.47% to Rs1.05m from Rs3.34m.

As a result, total non-markup income grew 14.11% to Rs34.43bn from Rs30.18bn, lifting total income 6.89% to Rs160.70bn from Rs150.33bn.

Operating expenses increased 11.42% to Rs67.73bn from Rs60.79bn, while Workers’ Welfare Fund declined 2.50% to Rs1.83bn from Rs1.88bn and other charges fell 31.19% to Rs258.71m from Rs375.95m. Total non-markup expenses grew 10.75% to Rs69.82bn from Rs63.04bn.

Share of profit of associates fell 25.68% to Rs1.66bn from Rs2.23bn. Profit before credit loss allowance rose 3.37% to Rs92.53bn from Rs89.52bn.

A net reversal of credit loss allowance and write-offs of Rs121.08m, down 97.74% from Rs5.36bn last year, took profit before taxation down 2.34% to Rs92.66bn from Rs94.88bn.

Taxation fell 3.84% to Rs48.33bn from Rs50.25bn, which left profit after taxation at Rs44.33bn.

Profit attributable to non-controlling interest declined 40.38% to Rs169.25m from Rs283.87m. Profit attributable to equity shareholders of the bank slipped 0.41% to Rs44.16bn from Rs44.34bn.

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