October 22, 2025 (MLN): MCB Bank Limited (PSX: MCB) reported a profit after taxation of Rs44.63bn for the nine months ended September 30, 2025, down 15.5% from Rs52.82bn in the corresponding period last year.
Earnings per share declined to Rs37.42 compared to Rs44.47 in 9MFY24.
The company gave a cash dividend of Rs9 per share.
Mark-up/return/interest earned decreased 23.7% YoY to Rs244.39bn from Rs320.34bn. Mark-up/return/interest expended fell 35.1% to Rs124.23bn from Rs191.30bn.
Net mark-up/interest income contracted 6.9% to Rs120.16bn against Rs129.04bn in 9MFY24.
Fee and commission income declined 4.9% to Rs17.81bn, while dividend income increased 34.7% to Rs2.72bn.
Foreign exchange income rose 6.3% to Rs8.34bn from Rs7.84bn last year.
Income from derivatives more than doubled, increasing 2.1 times to Rs3.3m from Rs1.6m. Gain on securities surged 3.7 times to Rs819.5m from Rs174.3m. Other income increased 17.4% to Rs486.7m.
Total non-markup/interest income rose 3.5% to Rs30.18bn from Rs29.17bn, while total income declined 5% to Rs150.33bn from Rs158.21bn in 9MFY24.
Operating expenses increased 15.5% to Rs60.79bn, while Workers Welfare Fund decreased 8.9% to Rs1.88bn. Other charges rose 7.2% to Rs376m. Total non-markup/interest expenses climbed 14.5% to Rs63.04bn from Rs55.04bn last year.
Share of profit of associates increased 37.8% to Rs2.23bn from Rs1.62bn in the previous year.
Profit before credit loss allowance stood at Rs89.52bn, down 14.6% from Rs104.79bn in 9MFY24.
Profit before taxation decreased 8.7% to Rs94.88bn from Rs103.97bn in 9MFY24.
Taxation declined marginally by 1.7% to Rs50.25bn from Rs51.15bn in the prior period.
The bank concluded 9MFY25 with a net profit of Rs44.63bn, delivering a return on equity lower than the prior year.
The profit decline was driven by compressed net interest income and significantly higher credit loss provisions, partially offset by improved non-markup income and higher share of profit from associates.
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STATEMENT OF PROFIT OR LOSS FOR THE NINE MONTH ENDED SEPTEMBER 30, 2025 (Rs.000) |
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|
Description |
9MFY25 |
9MFY24 |
change% |
|
Mark-up / return / interest earned |
244,385,468 |
320,340,935 |
-23.7% |
|
Mark-up / return / interest expended |
124,229,636 |
191,303,252 |
-35.1% |
|
Net mark-up / interest income |
120,155,832 |
129,037,683 |
-6.9% |
|
NON MARK-UP / INTEREST INCOME |
|
|
|
|
Fee and commission income |
17,807,340 |
18,715,119 |
-4.9% |
|
Dividend income |
2,721,172 |
2,020,369 |
34.7% |
|
Foreign exchange income |
8,337,380 |
7,841,559 |
6.3% |
|
Income from derivatives |
3,343 |
1,582 |
111.3% |
|
Gain on securities - net |
819,523 |
174,282 |
370.2% |
|
Net gains / (loss) on derecognition of financial assets measured at amortised cost |
- |
- |
|
|
Other income |
486,688 |
414,516 |
17.4% |
|
Total non-markup / interest income |
30,175,446 |
29,167,427 |
3.5% |
|
Total income |
150,331,278 |
158,205,110 |
-5.0% |
|
NON MARK-UP / INTEREST EXPENSES |
|
|
|
|
Operating expenses |
60,787,005 |
52,624,978 |
15.5% |
|
Workers Welfare Fund |
1,875,955 |
2,060,107 |
-8.9% |
|
Other charges |
375,953 |
350,778 |
7.2% |
|
Total non-markup / interest expenses |
63,038,914 |
55,035,863 |
14.5% |
|
Share of profit of associates |
2,228,968 |
1,617,156 |
37.8% |
|
Profit before credit loss allowance |
89,521,332 |
104,786,403 |
-14.6% |
|
Credit loss allowance and write offs - net |
(5,358,522) |
817,825 |
|
|
PROFIT BEFORE TAXATION |
94,879,854 |
103,968,578 |
-8.7% |
|
Taxation |
50,254,660 |
51,147,880 |
-1.7% |
|
PROFIT AFTER TAXATION |
44,625,194 |
52,820,698 |
-15.5% |
|
Earning per share |
37.42 |
44.47 |
-15.9% |