Islamabad, Feb 6: MCB Bank Limited has announced strong financial results for the year ending December 31, 2024, showcasing continued growth and stability. Under the leadership of Chairman Mian Mohammad Mansha, the Board of Directors approved the annual financial statements and declared a final cash dividend of PKR 9.0 per share, bringing the total cash dividend for 2024 to 360%.
The Bank reported a profit before tax (PBT) of PKR 118.4 billion and a profit after tax (PAT) of PKR 57.6 billion, translating into an earnings per share (EPS) of PKR 48.62. On a consolidated basis, PBT stood at PKR 131.2 billion. This performance was driven by stable core earnings, revenue diversification, cost optimization, and robust risk management.
Despite a negative spread on savings deposits in the latter half of the year, net interest income saw a modest 1% year-on-year growth. Non-markup income surged by 14%, reaching PKR 37.4 billion, supported by a 5% rise in fee and commission income, an 8% increase in foreign exchange income, and a 15% growth in dividend income. Gains on securities also contributed PKR 3.1 billion.
Fee-based income saw significant growth across multiple channels, including a 32% rise in card-related income, an 18% increase in branch banking fees, and a 61% jump in investment service commissions. The Bank’s continued investment in digital transformation played a crucial role in enhancing customer experience and operational efficiency.
Operating expenses increased by 18% due to higher staff costs, marketing, utilities, and IT expenditures. However, the cost-to-income ratio remained efficient at 32.68%, reflecting disciplined financial management while maintaining investments in innovation and talent development.
MCB maintained strong asset quality, keeping non-performing loans (NPLs) at PKR 53.5 billion. The coverage ratio improved to 99.34%, while the infection ratio stood at 4.89%. Total assets grew by 11% to PKR 2.7 trillion, with deposits increasing by PKR 116.8 billion. Current deposits rose by 8.4% to PKR 944 billion, and the CASA ratio improved to 97.24%.
Return on Assets (ROA) and Return on Equity (ROE) stood at 2.25% and 26.56%, respectively, with a book value per share of PKR 191.73. The Bank attracted home remittance inflows of USD 4,592 million, marking a 41% growth and increasing its market share to 13.2%.
MCB’s Capital Adequacy Ratio (CAR) stood at 19.35%, well above the regulatory requirement of 11.5%, while its Common Equity Tier-1 (CET1) ratio was 15.49% against the 6.0% requirement. The Bank also reported a strong Leverage Ratio of 6.37%, Liquidity Coverage Ratio (LCR) of 241.33%, and Net Stable Funding Ratio (NSFR) of 128.29%.
The Pakistan Credit Rating Agency reaffirmed MCB’s long-term and short-term credit ratings at “AAA / A1+”. The Bank’s exceptional performance was recognized by the Asian Development Bank (ADB) with two prestigious awards: ‘Leading Partner Bank in Pakistan’ and the ‘Momentum Award Issuing Bank.’
Additionally, MCB’s 2023 annual report was ranked first in the banking category and declared the overall winner across all categories by the Joint Evaluation Committee of ICAP & ICMA. With over 1,700 branches, MCB operates Pakistan’s second-largest branch network and remains one of the country’s most capitalized and actively traded stocks.
