MCB Bank Limited (PSX: MCB) has reported a 15.52% decline in profit attributable to equity shareholders for the half-year ended June 30, 2025. The MCB Bank profit dropped to Rs29.23 billion [EPS: Rs24.67], compared to Rs34.61 billion [EPS: Rs29.20] in the same period last year.
Total income decreased by 4.42% to Rs98.89 billion, driven by a 23.25% fall in mark-up/interest earned, which settled at Rs160.22 billion. Despite a 34.87% reduction in mark-up/interest expenses to Rs81.26 billion, net mark-up/interest income declined by 5.98% to Rs78.96 billion.
Non-mark-up income posted a 2.31% increase, totaling Rs19.93 billion. Dividend income surged 68.28%, foreign exchange income grew 3.69%, and derivatives income jumped 94.38%. However, fee and commission income fell by 3.75%, and securities registered a net loss of Rs125.45 million.
Rising Expenses Weigh on Earnings
Non-mark-up expenses rose 17.37% to Rs41.70 billion, largely due to an 18.75% rise in operating expenses. On the positive side, Workers Welfare Fund charges decreased by 8.45%, and other charges dropped 31.92%.
MCB Bank’s share of profit from associates increased by 23.61% to Rs1.2 billion, while the reversal of net credit loss allowance by Rs4.15 billion provided some relief.
Despite these gains, profit before taxation declined 8.48% to Rs62.55 billion, and after-tax profit fell 15.28% to Rs29.39 billion. After accounting for non-controlling interest, MCB Bank profit attributable to shareholders stood at Rs29.23 billion, down from Rs34.61 billion last year.
MCB Bank has declared an interim cash dividend of Rs9 per share (90%), in addition to the Rs9 per share interim dividend already paid.