MCB Bank's 9MFY25 profit declines 15.5%

MG News | October 22, 2025 at 04:53 PM GMT+05:00

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October 22, 2025 (MLN): MCB Bank Limited (PSX: MCB) reported a profit after taxation of Rs44.63bn for the nine months ended September 30, 2025, down 15.5% from Rs52.82bn in the corresponding period last year.

Earnings per share declined to Rs37.42 compared to Rs44.47 in 9MFY24.

The company gave a cash dividend of Rs9 per share.

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.

Net mark-up/interest income contracted 6.9% to Rs120.16bn against Rs129.04bn in 9MFY24.

Fee and commission income declined 4.9% to Rs17.81bn, while dividend income increased 34.7% to Rs2.72bn.

Foreign exchange income rose 6.3% to Rs8.34bn from Rs7.84bn last year.

Income from derivatives more than doubled, increasing 2.1 times to Rs3.3m from Rs1.6m. Gain on securities surged 3.7 times to Rs819.5m from Rs174.3m. Other income increased 17.4% to Rs486.7m.

Total non-markup/interest income rose 3.5% to Rs30.18bn from Rs29.17bn, while total income declined 5% to Rs150.33bn from Rs158.21bn in 9MFY24.

Operating expenses increased 15.5% to Rs60.79bn, while Workers Welfare Fund decreased 8.9% to Rs1.88bn. Other charges rose 7.2% to Rs376m. Total non-markup/interest expenses climbed 14.5% to Rs63.04bn from Rs55.04bn last year.

Share of profit of associates increased 37.8% to Rs2.23bn from Rs1.62bn in the previous year.

Profit before credit loss allowance stood at Rs89.52bn, down 14.6% from Rs104.79bn in 9MFY24.

Profit before taxation decreased 8.7% to Rs94.88bn from Rs103.97bn in 9MFY24.

Taxation declined marginally by 1.7% to Rs50.25bn from Rs51.15bn in the prior period.

The bank concluded 9MFY25 with a net profit of Rs44.63bn, delivering a return on equity lower than the prior year.

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.

STATEMENT OF PROFIT OR LOSS FOR THE NINE MONTH ENDED SEPTEMBER 30, 2025 (Rs.000)
Description	9MFY25	9MFY24	change%
Mark-up / return / interest earned	244,385,468	320,340,935	-23.7%
Mark-up / return / interest expended	124,229,636	191,303,252	-35.1%
Net mark-up / interest income	120,155,832	129,037,683	-6.9%
NON MARK-UP / INTEREST INCOME
Fee and commission income	17,807,340	18,715,119	-4.9%
Dividend income	2,721,172	2,020,369	34.7%
Foreign exchange income	8,337,380	7,841,559	6.3%
Income from derivatives	3,343	1,582	111.3%
Gain on securities - net	819,523	174,282	370.2%
Net gains / (loss) on derecognition of financial assets measured at amortised cost	-	-
Other income	486,688	414,516	17.4%
Total non-markup / interest income	30,175,446	29,167,427	3.5%
Total income	150,331,278	158,205,110	-5.0%
NON MARK-UP / INTEREST EXPENSES
Operating expenses	60,787,005	52,624,978	15.5%
Workers Welfare Fund	1,875,955	2,060,107	-8.9%
Other charges	375,953	350,778	7.2%
Total non-markup / interest expenses	63,038,914	55,035,863	14.5%
Share of profit of associates	2,228,968	1,617,156	37.8%
Profit before credit loss allowance	89,521,332	104,786,403	-14.6%
Credit loss allowance and write offs - net	(5,358,522)	817,825
PROFIT BEFORE TAXATION	94,879,854	103,968,578	-8.7%
Taxation	50,254,660	51,147,880	-1.7%
PROFIT AFTER TAXATION	44,625,194	52,820,698	-15.5%
Earning per share	37.42	44.47	-15.9%

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