MCB Bank Grows Deposits, Plays Safe with Govt Securities

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MCB Bank Posts Strong Deposit Growth and Expands Investment in Government Securities Amid Margin Pressure.

MCB Bank reported robust 9M-2025 results marked by strong deposit growth and prudent balance-sheet management. The Bank achieved a record Rs. 272 billion increase in current deposits, while its investment portfolio surged 72.2% YTD to Rs. 2.0 trillion—mainly driven by government securities.

Net interest income fell 5.8%, partly offset by a 29% rise in current deposits. Total assets grew 20% to Rs. 3.23 trillion, driven by a 72% increase in investments, while advances declined 38% under a cautious lending approach. Deposits reached Rs. 2.23 trillion, reducing the domestic cost of deposits to 5.01%. Non-markup income was Rs. 26 billion, with growth in FX and dividend income offsetting lower remittance fees. Home remittances rose 7.6% to USD 3.44 billion. The bank maintained strong asset quality, capital, and liquidity, while declaring a third interim dividend, bringing total payout to 270%. MCB continues to focus on prudent growth, digital banking, and financial inclusion.


The domestic cost of deposits dropped sharply to 5.01% (from 10.47% last year), reflecting improved funding efficiency. Standalone and consolidated profit before tax stood at Rs. 87.5 billion and Rs. 94.9 billion, respectively—both lower YoY due to margin compression.

Ex-NIB recoveries reached Rs. 523 million during 9M-2025, bringing total recoveries since 2017 to Rs. 11.11 billion. 

Home remittance inflows rose 7.6% YoY to USD 3.4 billion, underscoring the Bank’s role in supporting financial inclusion and national economic stability through secure and efficient remittance channels.

Financial Performance:

  • 9M-2025 PBT: Rs. 87.48 billion

  • 9M-2025 PAT: Rs. 41.10 billion (EPS: Rs. 34.68 vs. 40.88 YoY)

  • Consolidated PBT: Rs. 94.88 billion

  • Effective tax rate: 53% (up from 49% YoY)

Income & Expenses:

  • Net interest income: -5.8% YoY

  • Non-markup income: Rs. 26.0 billion (-3.1% YoY)

    • Fee & commission: Rs. 13.98 billion (-15%)

    • FX income: Rs. 7.9 billion (+5%)

    • Dividend income: Rs. 3.2 billion (+30%)

  • Operating expenses: +14.6% YoY

  • Cost-to-income ratio: 37.65%

Balance Sheet:

  • Total assets: Rs. 3.23 trillion (+20%)

  • Net investments: +72%

  • Gross advances: -38%

  • Deposits: Rs. 2.23 trillion

    • Current deposits: +Rs. 272 billion

    • Domestic cost of deposits: 5.01% (from 10.47% YoY)

Asset Quality:

  • NPLs: Rs. 50 billion

  • Infection ratio: 7.35%

  • Coverage ratio: 92.24%

Home Remittances:

  • USD 3,437 million (+7.6% YoY)

Capital & Liquidity:

  • CAR: 19.88%

  • CET1: 15.37%

  • LCR: 267.46%

  • NSFR: 163.92%

Dividend:

  • Third interim: Rs. 9/share

  • Total 9M payout: 270%

Highlights:

  • Strong deposit growth and cost efficiency

  • Prudent lending with cautious advances

  • Focus on digital banking and financial inclusion

  • Maintained robust capital and liquidity position

Presentatio:https://dps.psx.com.pk/download/document/265533.pdf

Sep2025 Financial Report: https://dps.psx.com.pk/download/document/264076.pdf