In the name of Allah
the most beneficent
,the most merciful
Muhammad Khalid
Mc100203060
MBA
Finance
Introduction to MCB Bank Ltd.
A bank is a financial institute which
deal in money And credit.
It receive the deposit and make the
loans
History of MCB bank
Muslim commercial bank limited. MCB bank is the
one of the leading bank of the Pakistan MCB
have the experience over 50 year in Pakistan and
the hard work which make it leading organization
in the present scenario .MCB is not make the
overnight success story but behind the success of
the MCB is the hardworking and the full
dedication MCB incorporated by the Adamjee
group, during in 1960s the bank grew rapidly
with the concentration on trade finance products.
In 1947, MCB was nationalized along with the
private bank and then MCB privatized in 1991
during the Nawaz Sharif‘s government financial
sector deregulation policies
Product and Services of MCB
Al-Makhraj saving
account
IANAT account
Al-Makhraj TDR
Saving 365 gold
Saving extra
Smart dollar account
Saving account
Current account
Current life account
Foreign currency
account
Auto loan
Credit Cards
Visa Debit card
MCB visa platinum
MCB visa
MCB visa Prepaid
Competitor of MCB
United Bank Limited
Allied Bank Limited
Habib Bank Limited
Askari Bank Limited
Alfalah Bank Limited
Business volume of MCB
Details
2008
2009
2010
Total Assets
443,615,904
509,223,727 567,552,613
Deposits
330,181,624
367,604,711 431,371,937
Advances-net
262,135,470
253,249,407 254,551,589
Investments-net
96,631,874
167,134,465 213,060,882
Shareholder’s Equity
52,244,865
61,075,932
488,348,404
Profit before Taxation
21,867,566
23,154,945
26,253,075
Profit after Taxation
15,374,600
15,495,297
16,873,175
Earning per Share(Rs.)
22.25
20.38
22.20
Organizational Hierarchy Chart
President
Chairman
Vice president
Senior Vice President
Chief Financial Advisor
Audit Committee
Regional Manager
Branch Manager
Training Program
Starting Date
10 November 2011
Ending Date
24 December 2011
My Working Departments
2 Weeks
Account opening
3rd Week
Cash
4th Week
Credit
5th Week
Clearing
6th Week
Remittances
Ratio Analysis
Ratio analysis Muslim Commercial Bank Limited
(Net profit after taxation / net sale) * 100
Net profit
margin
Year 2008
Year 2009
Year 2010
15374600/40043824
*100
= 38.39 %
15495297/51616007
*100
= 30.02%
16873175/54821296
*100
= 30.78 %
Net Prof it Margin
40
30
20
Net Prof it Margin
10
0
2008
2009
2010
Ratio analysis Muslim Commercial Bank Limited
Net interest margin / mark-up earned
Gross spread
ratio
Year 2008
Year 2009
Year 2010
28,483,084 /
40,043,824
=0.71 times
35,774,544/
51,616,007
=0.69 times
36,833,529/
54,821,296
=0.67 times
Gross Spread Ratio
0.71
0.7
0.69
Gross Spread
Ratio
0.68
0.67
0.66
0.65
2008
2009
2010
Ratio analysis Muslim Commercial Bank Limited
Non interest income / total income
Non Interest
income to
total income
ratio
Year 2008
Year 2009
Year 2010
30255403 / 70299277
=0.43 times
34095108 / 85711115
=0.39 times
39501718/94323014
=0.41 times
Non Interest Income to Total Income Ratio
0.43
0.42
0.41
Non Interest Income to
Total Income Ratio
0.4
0.39
0.38
0.37
2008
2009
2010
Ratio analysis Muslim Commercial Bank Limited
Interest earned / interest expenses
Spread ratio
Year 2008
Year 2009
Year 2010
40,043,824/11,560,74
0
=3.46 times
51,616,007/15,841,46 54,821,296/17,987,7
3
67
=3.258 times
=3.047 times
Spread Ratio
3.5
3.4
3.3
3.2
Spread Ratio
3.1
3
2.9
2.8
2008
2009
2010
Ratio analysis Muslim Commercial Bank Limited
(Earning before income tax / total assets) * 100
Return on
Assets
Year 2008
Year 2009
Year 2010
21867566/443615904
*100
=4.93 %
23154945/509223727 26253075/56755261
*100
3 *100
=4.55 %
=4.63 %
Return on As s ets (ROA)
5
4.8
Return on
As s ets (ROA)
4.6
4.4
4.2
2008
2009
2010
Ratio analysis Muslim Commercial Bank Limited
(Net income / sale) * (sale / total assets) * 100
DuPont
Return on
Assets
Year 2008
Year 2009
Year 2010
(0.3839*0.090267) *
100
=3.47 %
(0.3002*0.101362) *
100
=3.04 %
(0.3077*0.096592) *
100
=2.97 %
DuPont Return on A ssets
3.6
3.4
3.2
DuPont Return on
A ssets
3
2.8
2.6
2008
2009
2010
Ratio analysis Muslim Commercial Bank Limited
(Net income / total equity) * 100
Return on
total Equity
Year 2008
Year 2009
Year 2010
15,374,600/
52,244,865 * 100
= 29.43 %
15,495,297/
61,075,932*100
=25.37%
16,873,175/
69180,011*100
=24.39 %
Return on Total Equity
30
25
20
Return on Total
Equity
15
10
5
0
2008
2009
2010
Ratio analysis Muslim Commercial Bank Limited
Total Liabilities / Total Assets
Debt Ratios
Year 2008
Year 2009
Year 2010
385,179,850 /
443,615,904
= 0.87 Times
439,483,714 /
509,223,727
= 0.86 Times
488,348,404 /
567,552,613
= 0.86 Times
Debt Ratio
0.87
0.868
0.866
0.864
0.862
Debt Ratio
0.86
0.858
0.856
0.854
2008
2009
2010
Ratio analysis Muslim Commercial Bank Limited
Total liabilities / total share holder Equity
Debt / Equity
Ratio
Year 2008
Year 2009
Year 2010
385,179,850 /
525,244,865
=7.37 Times
439,483,714 /
61,075,932
=7.19 times
488,348,404 /
69,180,011
=7.06 times
Debt to Equity Ratio
7.4
7.3
7.2
Debt to Equity Ratio
7.1
7
6.9
2008
2009
2010
Ratio analysis Muslim Commercial Bank Limited
Earning before Income Tax (EBIT) / Interest Expenses
Times
Interest
Earned
Year 2008
Year 2009
Year 2010
33,428,306 /
11,560,740
=2.89 times
38,996,408 /
15,841,463
=2.46 times
44,240,842 /
17,987,767
=2.46 times
Times Interest Earned
2.9
2.8
2.7
2.6
Times Interest Earned
2.5
2.4
2.3
2.2
2008
2009
2010
Ratio analysis Muslim Commercial Bank Limited
Advance / deposit
Advance /
deposit ratio
Year 2008
Year 2009
Year 2010
262,135,470/330,181,
624
=0.79 times
253,294,407/367,604, 254,551,589/431,37
711
1,937
=0.69 times
=0.59 times
Advance to Deposit Ratio
0.8
0.7
0.6
0.5
Advance to Deposit
Ratio
0.4
0.3
0.2
0.1
0
2008
2009
2010
Ratio analysis Muslim Commercial Bank Limited
Operating cash flow / current liabilities
Operating
cash flow
ratio
Year 2008
Year 2009
Year 2010
20,315,38/384742713
=0.0052 times
78,148,082/43628697 58,701,161/4834143
1
86
=0.179 times
=0.121 times
Operating Cash Flow Ratio
0.18
0.16
0.14
0.12
0.1
Operating Cash Flow
Ratio
0.08
0.06
0.04
0.02
0
2008
2009
2010
Ratio analysis Muslim Commercial Bank Limited
Total dividend / no. of outstanding shares
Dividend per
share
Year 2008
Year 2009
Year 2010
98,341,75/628276.8
=15.65 Rs.
67 355,10 / 691104.5
=9.75 Rs.
85,675,47 / 760215
=11.27 Rs.
Dividend per Share
16
14
12
10
8
Dividend per Share
6
4
2
0
2008
2009
2010
Ratio
analysis
Muslim Commercial Bank Limited
Earning per
share
Year 2008
Net income / number of outstanding
Year 2009
Year 2010
15,374,600 / 628276.8 15,495,297/691104.5
=24.47 Rs.
=22.42 Rs.
16,873,175 / 760215
=22.19 Rs.
Earning per Share
24.5
24
23.5
23
Earning per Share
22.5
22
21.5
21
2008
2009
2010
Ratio analysis Muslim Commercial Bank Limited
Market value per share / earning per share
Price /
earning ratio
Year 2008
Year 2009
Year 2010
125.81 / 24.471061
=5.14 Rs.
219.68 / 22.421062
=9.79 Rs.
228.54 /22.195267
=10.29 Rs.
Price / Earning Ratio
12
10
8
6
Price / Earning Ratio
4
2
0
2008
2009
2010
Conclusion
During my internship in MCB bank I conclude that the organization
doing overall good business and also have a good culture.
MCB provide different type of products and account to the
customer.
MCB’s most of branches have online system and ATM machines
which is good for the customer.
MCB has also the largest branch setup all over the Pakistan.
Net profit of the organization is decreases and it is need to be
improve for the portability.
Also the Debt ratio of the organization is decreasing over the time
so it is good sign for the organization.
Return on assets of the organization is very good so the bank is
utilize there sources very well and gain profit.
So there is also some week point of the organization as there is
some strict rule regarding the account opening so customer face
some difficulty.
Finely the organization doing a very good business.
Recommendation
The MCB bank (Ltd) doing good gob over the years that way
the deposit of the organization increase and the profitability
also increase. The recommendation for the improvement is as
follow
 training of the employees according to the new technology
and also hire the young talent and fresh blood in the
organization
Make all the banks online and minimum charges of the usage
of ATM cars and also make the mobile transaction free of
cost.
Bank also take the step to increase in profit.
There is need to improve the security of the organization as
improve security cameras and other devices for safety.
Also make the documentation awareness
Investment in assets should be appropriate.
Return on assets is improving over the year and make sure
this is continued.