MCB Bank profit falls 11%, declares Rs9 dividend

April 23, 2026 (MLN): MCB Bank Limited (PSX: MCB) reported a decline in its consolidated profit after taxation for the first quarter ended March 31, 2026, with earnings clocking in at Rs13.14bn, down 11% year-on-year compared to Rs14.74bn in the same period last year.

The bank’s earnings per share (EPS) also dropped to Rs11.07 from Rs12.36 in Q1 2025, showing a decline of 10% YoY.

Alongside the results, MCB Bank announced a first interim cash dividend of Rs9.00 per share (90%), maintaining an attractive payout for shareholders.

On the core income front, the bank posted a modest improvement. Mark-up/interest earned increased by 2.6% YoY to Rs80.02bn, while mark-up/interest expensed declined by 1.4% YoY to Rs38.36bn.

This led to a 6.6% rise in net mark-up income, which stood at Rs41.66bn during the quarter.

However, non-markup income performance remained weak. Total non-markup income declined by 6.2% YoY to Rs9.85bn. Fee and commission income provided some support, rising 9% YoY to Rs7.21bn.

In contrast, dividend income fell sharply by 37% to Rs0.96bn, foreign exchange income dropped by 31% to Rs1.62bn, and other income plunged by 58% YoY, weighing on overall non-core earnings.

As a result, total income increased marginally by 3.9% YoY to Rs51.51bn, reflecting limited top-line growth amid pressure on non-funded income streams.

On the expense side, the bank witnessed notable cost escalation. Operating expenses rose by 10.4% YoY to Rs22.25bn, while total non-markup expenses increased by 9.7% YoY to Rs22.87bn, highlighting persistent inflationary pressures on the cost base.

Profit before credit loss allowance stood at Rs28.80bn, slightly down 1.4% YoY.

Meanwhile, the provisioning line provided some relief, as the bank recorded a net charge of Rs0.89bn compared to a reversal of Rs2.33bn in the same period last year, indicating a normalization in credit costs.

Consequently, profit before taxation declined by 11.6% YoY to Rs27.91bn. The taxation charge also decreased by 12.2% YoY to Rs14.77bn, partially cushioning the bottom-line impact.

Overall, MCB Bank posted a profit after taxation of Rs13.14bn, down 11% YoY, as weaker non-core income and rising expenses outweighed gains in core banking income, reflecting a challenging operating environment during the quarter.

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