Mcb Bank Limited · PSX:MCB

Mcb Bank — Q2 2008 Earnings Presentation

15 slides from Mcb Bank's earnings presentation, Aug 27, 2008

1. Slide 1: MCB Bank Limited Second Quarter 2008

   MCB Bank Limited SECOND QUARTER 2008 27th August 2008

2. Slide 2: Disclaimer

   Disclaimer THIS PRESENTATION IS BEING PRESENTED TO YOU SOLELY FOR YOUR INFO RMATION AND MAY NOT BE REPRODUCED, REDISTRIBUTED OR PASSED ON, DIRECTLY OR INDIRECTLY, TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE. The securities of MCB Bank Limited (the “Company”) have not been

3. Slide 3: Important Information about Results Presentation

   Important Information about Results Presentation  Certain prior period financial numbers have been reclassified to conform to current period results presentation 3 HK000LN4_SCN_0906

4. Slide 4: Market Conditions in 1H 2008

   Market Conditions in 1H 2008  After a period of sustained growth, Pakistan is now facing economic challenges to curb the twin deficits and inflation. The rise in the deficits and inflation is partly due to the increase in soft and hard commodity prices globally  In 1H 2008, a challenging macroecon

5. Slide 5: Recent Events

   Recent Events  In May 2008, MCB announced signing of agreements for a strategic partnership with Malaysia’s leading financial services group Malayan Banking Berhad (“Maybank”)  Maybank acquired an initial 15% stake in MCB with an option to increase to 20% within one year subject to the necessary a

6. Slide 6: 2Q 2008 Financial Highlights

   2Q 2008 Financial Highlights  EPS for 2Q08 was PKR 7.2, up 10% YoY and 12% QoQ • Higher net interest income and contribution from Adamjee was offset by lower capital markets income • The effective tax rate was also lower in this quarter  The Board of Directors announced a DPS of PKR 3/-  Profit (

7. Slide 7: 2Q 2008 Consolidated Highlights

   2Q 2008 Consolidated Highlights O (U) PKR O (U) % PKR mm 2Q08 2Q07 1Q08 2Q07 1Q08 Net mark-up interest income 6,403 604 205 10% 3% Non-interest income 1,024 (963) (886) (48%) (46%) Total Revenue 7,427 (359) (681) (5%) (8%) Profit before Tax 5,708 (365) (39) (6%) (1%) Net Income 4,507 394 500 10% 12%

8. Slide 8: 2Q 2008 Standalone Highlights

   2Q 2008 Standalone Highlights O (U) PKR O (U) % PKR mm 2Q08 2Q07 1Q08 2Q07 1Q08 Net mark-up interest income 6,401 606 205 10% 3% Non-interest income 939 (1,017) (978) (52%) (51%) Total Revenue 7,340 (411) (773) (5%) (10%) Profit before Tax 4,870 (1,002) (888) (17%) (15%) Net Income 3,565 (371) (547)

9. Slide 9: Consolidated Income Statement

   Consolidated Income Statement  Interest income increased 9% YoY and 7% QoQ O (U) PKR • Strong growth in income from advances, up 28% YoY, was offset by lower income from PKR mm 2Q08 2Q07 1Q08 investments  Interest expense grew 7% YoY and 18% QoQ Mark-up Interest Earned 8,750 751 560  Non-interest

10. Slide 10: Consolidated Balance Sheet

    Consolidated Balance Sheet O (U) PKR  Total net advances were PKR 229bn, up PKR mm 2Q08 2Q07 1Q08 18% YoY and flat QoQ - gross advances were PKR 240bn, up 18% YoY and flat Assets QoQ Cash and balances with treasury banks 60,649 24,068 22,764 • Industry net advances increased by Balances with other

11. Slide 11: Deposit Base

    Deposit Base O (U) PKR O (U) % PKR mm 2Q08 % total 2Q07 1Q08 2Q07 1Q08 Fixed deposits 29,969 9% (6,794) 1,450 (18)% 5% Savings 207,484 59% 40,183 37,167 24% 22% Current 113,248 32% 16,483 10,445 17% 10% Total deposits 350,701 100% 49,872 49,062 17% 16% CASA deposits 320,732 91% 56,666 47,611 21% 17%

12. Slide 12: Loan Portfolio

    Loan Portfolio O (U) PKR O (U) % PKR bn 2Q08 2Q07 1Q08 2Q07 1Q08 Corporate 119 23 5 25% 4% Commercial 72 1 (10) 2% (12)% Consumer 33 7 1 24% 3% Islamic 7 3 1 57% 20% Other 9 3 2 41% 19% Gross advances 240 37 (1) 18% 0% ADR (gross) % 68% 68% 80% ADR (net) % 65% 76% 64%  Total loan portfolio grew by

13. Slide 13: Asset Quality

    Asset Quality O (U) PKR O (U) % PKR mm 2Q08 2Q07 1Q08 2Q07 1Q08 2Q07 1Q08 Gross loans 240,178 203,319 241,012 36,858 (835) 18% 0% NPL 11,988 9,405 11,656 2,583 332 27% 3% Total provision 11,204 9,405 11,177 1,799 27 19% 0% NPL: Loans 4.99% 4.63% 4.84% Provision: NPLs 93.5% 100.0% 95.9%  Non-perform

14. Slide 14: Capital Strength

    Capital Strength Jun-08 Mar-08 Dec-07  Tier 1 capital ratio was 15% at June 2008  Total capital ratio was 18% at June 2008 Total assets 453,192 399,164 412,901 Tier 1 Capital 46,922 45,694 44,720 Tier 2 Capital 7,885 8,575 8,750 Risk weighted assets 306,697 301,034 299,119 Tier 1 Capital Ratio 15.

15. Slide 15: Thank you Question & Answer Session

    Thank you & Question & Answer Session HK000LN4_SCN_0906

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