MCB Bank earnings dip 13 per cent in second quarter

KARACHI: MCB Bank Ltd announced its financial results for the second quarter of 2025 (2Q2025) on Wednesday, reporting consolidated earnings of Rs14.6 billion, translating into earnings per share (EPS) of Rs12.3 — down 13 per cent year-on-year (YoY) and flat quarter-on-quarter (QoQ).

This takes the bank’s first half (1H2025) earnings to Rs29.2 billion (EPS: Rs24.7), marking a 16 per cent YoY decline, according to a report issued by Topline Securities.

Despite the annual drop, the 2Q2025 results came in above market expectations, supported by better-than-anticipated net interest income (NII).

Also read: MCB’s earnings drop 7.8 per cent to Rs18 billion

NII for the quarter clocked in at Rs39.9 billion — down 4 per cent YoY but up 2 per cent QoQ — owing to higher asset yields.

Meanwhile, non-interest income declined by 4 per cent YoY to Rs9.4 billion in 2Q2025, mainly due to a 5 per cent fall in fee income and an 8 per cent drop in foreign exchange earnings.

Share of profit from associates rose to Rs707 million, up 28 per cent YoY and 43 per cent QoQ.

Non-interest expenses increased by 15 per cent YoY and remained flat QoQ, likely due to ongoing inflationary pressures.

As a result, the bank’s cost-to-income ratio rose to 42.3 per cent in 2Q2025, compared to 35.5 per cent in the same period last year and 42.1 per cent in 1Q2025.

MCB reported a provision reversal of Rs1.8 billion in 2Q2025, compared to a provision expense of Rs588 million in 2Q2024 and a reversal of Rs2.3 billion in the previous quarter.

The bank’s effective tax rate stood at 53 per cent in 2Q2025, unchanged from 1Q2025 and higher than the 49 per cent recorded in 2Q2024.

Alongside the results, MCB announced an interim cash dividend of Rs9 per share, in line with expectations — bringing the total dividend payout for 1H2025 to Rs18 per share, the report added.