MCB declares Rs9 dividend despite 4% profit dip in 1HCY26

August 06, 2026 (MLN): MCB Bank Limited (PSX: MCB) 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.

The bank's performance was supported by steady expansion across core net interest income and non-markup revenue streams.

Net mark-up income rose by 4% year-on-year to Rs82.36bn (up from Rs78.96bn), while total non-mark-up income grew by 10% to Rs21.98bn (up from Rs19.93bn).

 Non-interest revenue growth was spearheaded by a 21% increase in fee and commission income to Rs14.85bn and a positive turnaround in securities trading, which generated gains of Rs485m compared to a loss last year.

Consequently, total income expanded by 6% to reach Rs104.34bn.

On the expense side, overheads expanded to support operations.

Operating expenses rose 11% to Rs44.84bn, bringing total non-mark-up expenses to Rs46.18bn.

Despite the overhead growth and a 15% drop in share of profit from associates (Rs1.02bn), pre-provision operating profit remained resilient, rising 1% to Rs59.18bn.

Below the pre-provision line, financial performance was impacted by credit loss provisions.

MCB booked a net credit loss provision reversal of Rs348.03m during 1HCY26.

The reduction in pre-tax earnings was partially buffered by a 7% lower taxation expense of Rs30.74bn (down from Rs33.16bn in 1HCY25).

Supported by reduced tax outlays, MCB Bank Limited securely closed the six-month period with its total net profit standing at Rs28.10bn.

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