MCB Bank sees policy rate hold through CY26, plans 40 branches by year end

August 12, 2026 (MLN): MCB Bank Limited (PSX:MCB) is expanding its retail footprint by opening 40 new branches during the current year, having already added 13 locations in the first half of CY26, to support its current account mobilization strategy, while the management has maintained a base-case outlook of interest rate stability through June 2027, projecting the State Bank of Pakistan’s policy rate to remain unchanged at 11.5% through the remainder of CY2026

Speaking during the bank’s 1HCY26 corporate briefing session, executive leadership outlined a steady growth trajectory for its deposit base, targeting an additional Rs 200 billion to Rs 250 billion in deposit additions during 2HCY26.

Addressing major regulatory changes, management disclosed that the withdrawal of SBP home remittance fee incentives effective July 1, 2026, will create an estimated Rs 7.5 billion gross bottom-line impact for MCB based on its 10% remittance market share.

On operational efficiency, the bank reiterated its commitment to keeping its cost-to-income ratio strictly below its 40% target threshold, supported by strict expenditure discipline alongside fee and net interest income growth.

The bank also reported strong digital traction, with registered users on its MCB Live platform surging 33% year-on-year to 2.2 million and processing throughput growing 115% year-on-year to reach Rs 2.72 trillion.

On the financial front, MCB Bank Limited  reported a mild 4% decline in its consolidated net profit for the half-year ended June 30, 2026 (1HCY26), recording Rs28.10bn compared to Rs29.39bn in the corresponding period last year.

Alongside the financial results, the bank announced an interim cash dividend of Rs9 per share.

Reflecting this stable trajectory, the bank's basic and diluted earnings per share (EPS) attributable to equity shareholders stood at Rs23.61 for the half-year, compared to Rs24.67 in 1HCY25.

Total deposits grew by Rs 342 billion over 1HCY26, with current deposits contributing Rs 224 billion to the expansion.

The investment portfolio grew by Rs 137 billion over the half to Rs 2.02 trillion, with floating-rate Pakistan Investment Bonds (PIBs) comprising 56% of the mix, fixed-rate PIBs 24%, and Treasury Bills 14%.

 Average investment yields eased to 11.63% due to lower benchmark rates. Operating expenses rose 9% year-on-year, largely due to annual compensation increments and the addition of  1,880 field force employees, bringing the 1HCY26 cost-to-income ratio to 39.20%.

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