MCB Bank Limited (PSX: MCB) disclosed its consolidated financial results for the half-year period ending June 30, 2025, reporting a 15.52% year-on-year decline in profit attributable to equity shareholders. The bank posted a profit of Rs29.23 billion (EPS: Rs24.67), compared to Rs34.61 billion (EPS: Rs29.20) in the same period last year.
The bank declared an interim cash dividend of Rs9 per share (90%), in addition to the Rs9 per share interim dividend already paid earlier.
Total income decreased by 4.42%, settling at Rs98.89 billion. This drop was primarily driven by a 23.25% decline in mark-up/interest earned, which amounted to Rs160.22 billion. However, mark-up/interest expenses saw a significant decrease of 34.87%, falling to Rs81.26 billion. As a result, net mark-up/interest income fell by 5.98% to Rs78.96 billion.
On the non-mark-up side, MCB Bank saw a 2.31% increase in income, reaching Rs19.93 billion. This growth was supported by a rise in dividend income (+68.28%), foreign exchange income (+3.69%), and income from derivatives (+94.38%). However, fee and commission income slipped by 3.75%, and the bank recorded a net loss of Rs125.45 million in securities.
Non-mark-up expenses surged by 17.37%, totaling Rs41.70 billion, largely due to an 18.75% rise in operating expenses. Meanwhile, Workers Welfare Fund charges decreased by 8.45%, and other charges dropped by 31.92%.
The bank’s share of profit from associates rose by 23.61% to Rs1.2 billion. Additionally, a reversal of the net credit loss allowance amounting to Rs4.15 billion positively impacted profitability.
Despite these positive factors, profit before taxation fell by 8.48% to Rs62.55 billion, and after-tax profit declined by 15.28% to Rs29.39 billion. After accounting for non-controlling interest, profit attributable to shareholders was Rs29.23 billion, down from Rs34.61 billion last year.
