{"id":11294,"date":"2025-08-20T10:32:49","date_gmt":"2025-08-20T05:32:49","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=11294"},"modified":"2025-08-20T10:32:52","modified_gmt":"2025-08-20T05:32:52","slug":"mcb-bank-limited-mcb-key-updates-from-corporate-briefing","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/mcb-bank-limited-mcb-key-updates-from-corporate-briefing\/","title":{"rendered":"MCB Bank Limited (MCB), Key Updates from Corporate Briefing"},"content":{"rendered":"\n<p><strong>MCB Bank Limited (<a href=\"https:\/\/ksestocks.com\/blog\/tag\/mcb\/\" data-type=\"post_tag\" data-id=\"61\" target=\"_blank\" rel=\"noreferrer noopener\">MCB<\/a>) <\/strong>recently held its corporate briefing to share financial results for the second quarter of 2025 and what lies ahead. Here are the main highlights in simple words:<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Stronger deposit mix <\/h2>\n\n\n\n<p>Current Accounts (the cheapest form of deposits for banks) now make up <strong>54%<\/strong> of total deposits, up from 49% at the end of 2024. This is good news because it lowers the bank\u2019s funding costs. Thanks to this, the <strong>cost of deposits fell to 4.9%<\/strong> in June 2025 vs <strong>10%<\/strong> a year earlier.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Loans (advances) down<\/h2>\n\n\n\n<p>The bank\u2019s lending portfolio dropped <strong>37% YoY<\/strong> to PKR 658bn, while the overall industry declined only 15%. This means MCB\u2019s market share of loans fell to <strong>4.9%<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Borrowings rising <\/h2>\n\n\n\n<p>MCB increased its borrowing through the central bank\u2019s OMO facility to <strong>PKR 578bn<\/strong> (vs PKR 185bn at Dec 2024). The cost is around <strong>11.1%<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Interest rate outlook<\/h2>\n\n\n\n<p>Management expects rates to stay stable for now, but sees room for another <strong>50bps to 100bps cut<\/strong> later in 2025.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Asset quality<\/h2>\n\n\n\n<p>No major loan losses are expected in the coming quarters; in fact, reversals may happen.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Branch network <\/h2>\n\n\n\n<p>The bank may open a few new branches in strong business areas, but overall focus remains on optimizing existing ones.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Costs and efficiency <\/h2>\n\n\n\n<p>Cost-to-income ratio is now <strong>38%<\/strong> (vs 31% last year). Management aims to keep this <strong>below 40%<\/strong> going forward.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Remittance business under pressure<\/h2>\n\n\n\n<p>MCB faced a <strong>PKR 1.2bn loss<\/strong> on remittance commissions in 1H2025 due to rising competition. Last year, the same segment had generated income of PKR 820mn. Management expects this to improve in the future.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Valuation &amp; outlook<\/h2>\n\n\n\n<p>Despite challenges, MCB remains attractive:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>PE ratio:<\/strong> 7.9x (cheap compared to peers)<\/li>\n\n\n\n<li><strong>PBV ratio:<\/strong> 1.4x<\/li>\n\n\n\n<li><strong>Dividend yield:<\/strong> ~10%<\/li>\n<\/ul>\n\n\n\n<p>Analysts maintain a <strong>Buy<\/strong> stance on the stock, expecting steady dividends and long-term stability.<\/p>\n\n\n\n<p><strong>Source: Topline Securities<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>MCB Bank Limited (MCB) recently held its corporate briefing to share financial results for the second quarter of 2025 and what lies ahead. Here are the main highlights in simple words:<\/p>\n","protected":false},"author":9252,"featured_media":6906,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,138],"tags":[61],"class_list":["post-11294","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-financials","tag-mcb"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/MCB-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/MCB-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/MCB-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/MCB-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11294","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=11294"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11294\/revisions"}],"predecessor-version":[{"id":11295,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11294\/revisions\/11295"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6906"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=11294"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=11294"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=11294"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}