MCB Bank sees policy rate hold through CY26, plans 40 branches by year end

MCB Bank's consolidated net profit slipped 4% to Rs28.10 billion in the six months to June 30, 2026, down from Rs29.39 billion a year earlier, Mettis Global reported. The lender also set an interim payout of Rs9 for each share, and its earnings per share fell to Rs23.61 from Rs24.67 in the comparable period a year ago.

The bank plans to open 40 branches by year end after adding 13 in the first half, and it aims to add between Rs200 billion and Rs250 billion in deposits during the second half. Management expects the State Bank of Pakistan to keep its policy rate at 11.5% for the rest of 2026, and it sees rates holding steady through June 2027. The bank estimates a gross earnings hit of Rs7.5 billion, based on its 10% share of the remittance market, after the State Bank's home remittance fee incentives are withdrawn from July 1, 2026.

Total deposits grew Rs342 billion in the half, with current deposits supplying Rs224 billion of the increase, while the investment portfolio expanded Rs137 billion to Rs2.02 trillion. Operating expenses rose 9%, largely due to annual increments and 1,880 new field staff, though the cost-to-income ratio stayed at 39.20%, under the 40% target. Digital activity also picked up, with registered MCB Live users up 33% to 2.2 million and processing throughput up 115% to Rs2.72 trillion.