MCB Bank eyes 60% current account mix, expands branch network

November 14, 2025 (MLN):  MCB Bank Limited (PSX:MCB)  is gearing up for a stronger, more sustainable earnings trajectory as management outlined an aggressive push toward accelerating digital transformation, and widening its branch network.

With the current account ratio already surpassing this year’s target, the bank now aims to lift it to 60% within the next few years, supported by the addition of around 45 new conventional branches and 10–15 Islamic branches by CY26, highlighted in its corporate briefing.

Management expects no policy rate changes over the next six months and does not foresee any near-term margin compression, as most of its investment book has already been repriced.

Competitive pressure in the remittance market is also expected to ease as the company hopes for a green number in home remittances, while loan growth will remain selective and aligned with the bank’s conservative risk appetite.

The bank highlighted strong traction in current deposit mobilization driven by its retail franchises, reactivation of dormant accounts, and performance-based employee incentives.

Management noted continued progress in digital banking, as card income rose double-digits and branch banking fees increased amid enhancements in customer engagement tools. While remittance fee income saw temporary pressure after regulatory changes, MCB expects normalization as competition stabilizes.

Financially, the bank declared cash dividend of Rs9 per share, taking total payouts for 9MCY25 to Rs27. Profit for 9MCY25 reached Rs44.6n, down 15.5% YoY amid margin compression and higher costs.

Mark-up/return/interest earned decreased 23.7% YoY to Rs244.39bn from Rs320.34bn. Mark-up/return/interest expended fell 35.1% to Rs124.23bn from Rs191.30bn.

Investments surged to Rs2tr, heavily weighted toward PIBs, and are not expected to undergo major repricing in the coming months.

Advances softened, with asset quality remaining stable as NPLs declined to Rs50bn.

Operating expenses grew due to higher spending on technology and human capital, pushing the cost-to-income ratio to around 38%.

The profit decline was driven by compressed net interest income and significantly higher credit loss provisions, partially offset by improved non-markup income and higher share of profit from associates for the 9MCY25.

Copyright Mettis Link News