MCB Bank reported an 11 percent decline in consolidated profit after taxation during the first quarter of 2026, as weaker non-core income and rising operating expenses weighed on earnings.
The bank posted a profit of Rs13.14 billion for the quarter ended March 31, compared to Rs14.74 billion in the same period last year. Earnings per share also declined to Rs11.07 from Rs12.36, reflecting a 10 percent year-on-year drop.
Despite lower profitability, MCB Bank announced a first interim cash dividend of Rs9 per share, maintaining a strong payout for shareholders.
The bank’s core income showed resilience during the quarter. Mark-up and interest earned rose 2.6 percent to Rs80.02 billion, while mark-up expenses declined 1.4 percent, helping net mark-up income increase 6.6 percent to Rs41.66 billion.
However, non-markup income remained under pressure, falling 6.2 percent to Rs9.85 billion. Dividend income dropped 37 percent, foreign exchange income declined 31 percent, and other income fell sharply, offsetting growth in fee and commission income.
Total income recorded modest growth of 3.9 percent to Rs51.51 billion, but higher costs continued to impact performance. Operating expenses rose 10.4 percent to Rs22.25 billion amid persistent inflationary pressures.
Profit before taxation fell 11.6 percent to Rs27.91 billion, while a lower tax charge provided some support to the bottom line.
The results reflect a challenging operating environment for the banking sector, where stronger core banking income was offset by pressure on non-funded income streams and rising costs.
