MCB Bank sees nearly 18% drop in quarterly profit

April 23, 2025 (MLN): MCB Bank Limited (PSX: MCB) disclosed its financial results for the quarter ended March 31, 2025, reporting a 17.78% decline in profit attributable to equity shareholders, which stood at Rs14.65 billion [EPS: Rs12.36], compared to Rs17.82bn [EPS: Rs15.04] in the same period last year.

The bank has declared an interim cash dividend of Rs9 per share, equivalent to 90%.

An analysis of the profit and loss account reveals that total income dropped by 4.80% to Rs49.58bn, driven primarily by a 22.36% decrease in mark-up/interest earned, which stood at Rs77.99bn.

Meanwhile, mark-up/interest expenses declined significantly by 33.13% to Rs38.92bn, resulting in a 7.52% fall in net mark-up/interest income to Rs39.07bn.

On the non-markup side, the bank recorded a 9.10% increase in income, reaching Rs10.5bn.

Key contributors included fee and commission income (+0.27%), dividend income (+93.91%), foreign exchange income (+22.39%), and other income (+45.65%).

However, the bank posted a net loss on securities of Rs139.66 million.

Total non-markup expenses rose sharply by 21.42% to Rs20.85bn, with operating expenses up by 23.47%.

Workers Welfare Fund expenses declined by 10.49%, while other charges fell significantly by 50.76%.

MCB share of profit from associates grew 18.35%, contributing Rs492.95m to overall earnings.

Despite a credit loss allowance and write-offs spike of over 8,244%, amounting to Rs2.33bn, profit before taxation declined by 10.74% to Rs31.55bn, down from Rs35.35bn in the previous year.

Taxation also dropped 3.87%, totaling Rs16.82bn.

After accounting for non-controlling interest, which increased by 142.87%, profit attributable to equity shareholders stood at Rs14.65bn, marking a 17.78% year-on-year decline.

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