PACRA maintains MCB Bank's short-term rating at A1+

June 29, 2026 (MLN): MCB Bank Limited has had its entity ratings maintained by the Pakistan Credit Rating Agency (PACRA) at AAA for long-term and A1+ for short-term, with a stable outlook, reflecting the bank's solid financial profile, stable deposit franchise, and consistent earnings generation.

PACRA noted that despite navigating a relatively lower interest rate environment during CY25, MCB demonstrated commendable balance sheet resilience and strategic adaptability, reaffirming the strength of its core operating fundamentals.

MCB's deposit base remains a principal rating strength.

Total deposits expanded to Rs2.26 trillion, reflecting year-on-year growth of  Rs339 billion.

Current deposits recorded a significant increase of Rs274 billion, further improving the CASA mix and contributing to a meaningful reduction in the domestic cost of deposits to 4.88%.

The agency noted that the bank's low-cost funding profile is supported by disciplined customer acquisition, deeper customer relationships, and dormant account reactivation  collectively strengthening the stability of its liability base.

On the digital banking front, MCB made meaningful progress during the year.

The bank's proprietary platform, MCB Live, expanded its registered user base to over 1.9 million customers, with annual transaction throughput surpassing Rs3.2 trillion representing an increase of 86% on a year-on-year basis.

PACRA said this sustained momentum reflects growing customer adoption and deeper engagement across digital channels, and is indicative of the bank's continued commitment to enhancing customer convenience and driving operational efficiency through technology-led innovation.

MCB retained its position as a leading player in the home remittances segment, processing $4.4 billion in inflows during CY25.

While the bank's market share moderated to 10.9% from 13.3% in CY24 amid an increasingly competitive landscape, it remained one of the foremost participants in the segment.

PACRA noted that MCB's sustained presence supports remittance flows and contributes to Pakistan's external account stability.

On the balance sheet, total assets grew to Rs 3,247.1 billion in CY25 from Rs 2,703.3 billion in CY24, driven predominantly by a substantial expansion in the investment portfolio, which increased to Rs1,947.2 billion from Rs1,167.5 billion.

This trajectory reflects the bank's continued strategic preference for government securities and other high-quality, low-risk assets, yielding a liquidity-heavy balance sheet structure consistent with prevailing industry trends.

In line with the broader sectoral pattern, net advances contracted by 34% to Rs690.3 billion during CY25, with the advances-to-deposit ratio declining correspondingly from 54.2% in CY24 to 30.5% in CY25.

The bank's capital position remains well above regulatory requirements.

The Capital Adequacy Ratio (CAR) was recorded at 19.5%, up marginally from 19.4% in CY24, while the Common Equity Tier-1 (CET1) ratio stood at 14.4% and the Liquidity Coverage Ratio (LCR) was reported at 267.3% collectively reflecting a well-capitalised institution with ample liquidity buffers to withstand stress scenarios.

In aggregate, PACRA said MCB's ratings are supported by its established franchise strength, resilient and low-cost funding base, and prudent balance sheet management, positioning the bank favourably amid evolving macroeconomic conditions and an increasingly dynamic industry environment.

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