MCB Bank profit falls 16% YoY in H1CY25

August 06, 2025 (MLN): MCB Bank Limited (PSX: MCB) disclosed its consolidated financial results for the half year ended June 30, 2025, posting a 15.52% year-on-year decline in profit attributable to equity shareholders, which clocked in at Rs29.23 billion [EPS: Rs24.67], compared to Rs34.61bn [EPS: Rs29.20] in the same period last year.

The bank has declared an interim cash dividend of Rs9 per share (90%), in addition to the Rs9 per share (90%) interim dividend already paid.

Total income declined 4.42% to Rs98.89bn, primarily due to a 23.25% decrease in mark-up/interest earned, which settled at Rs160.22bn, while mark-up/interest expenses dropped by 34.87% to Rs81.26bn, leading to a 5.98% fall in net mark-up/interest income to Rs78.96bn.

On the non-mark-up side, the bank posted a 2.31% increase in income, totaling Rs19.93bn.

This was supported by growth in dividend income (+68.28%), foreign exchange income (+3.69%), and income from derivatives (+94.38%), although fee and commission income slipped 3.75% and securities registered a net loss of Rs125.45 million.

Non-mark-up expenses surged 17.37% to Rs41.70bn, led by an 18.75% rise in operating expenses, while Workers Welfare Fund charges decreased 8.45% and other charges dropped 31.92%.

The bank's share of profit from associates stood at Rs1.2bn, up 23.61%. Notably, the net credit loss allowance reversed by Rs4.15bn, aiding profitability.

Despite this, profit before taxation fell 8.48% to Rs62.55bn, and after-tax profit declined 15.28% to Rs29.39bn.

After accounting for non-controlling interest, profit attributable to shareholders was recorded at Rs29.23bn, compared to Rs34.61bn in the previous year.

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