Slide 1: MCB Bank Limited Investors Briefing
MCB Bank Limited Investors Briefing December 31, 2017 Presented by: Hammad Khalid Head Investor Relations, Financial Reporting & Taxation
Slide 2: Group Structure
Group Structure MCB is one of the oldest banks of Pakistan, incorporated in 1947. It was privatized in 1991. To accede to international capital markets, the Bank launched Global Depositary Receipts (GDRs) in 2006. It was the first Pakistani Bank that got its GDRs listed on the London Stock Exchange.
Slide 3: MCB Key Historical Milestones
MCB Key Historical Milestones Incorporation 1947 Nationalization 1974 Privatization 1991 Change of name from Muslim Commercial Bank to MCB Bank 2005 1st Pakistani Bank to issue Global Depository Receipts 2006 Strategic Acquisition by Maybank – Largest private sector transaction 2008 Total Deposits o
Slide 4: Bank for Life: Strategic pillars
Strategic pillars MARKET LEADERSHIP > Amongst top 3 Banks in Pakistan > Maintain first-mover’s advantage in new businesses > Socially Responsible Organization > Strong Brand Recognition PRODUCTS & SERVICES Bank PEOPLE FOCUS > Continuous & sustainable earnings growth > Customer centricity in sales &
Slide 5: One of the largest Commercial Bank in Pakistan
One of the largest Commercial Bank in Pakistan Financial Strength Domestic and International footprint PKR 1,327 bn Domestic Assets 1,433 (US$ 12.0 bn) Branches 11 PKR 968 bn Foreign Deposits (Sri Lanka : 8, Bahrain : 1, EPZ : 1, UAE : (US$ 8.8bn) Branches 1) 1 Rep Office in Dubai PKR 515 bn MCB Fin
Slide 6: Distinguishing Financial Factors
Distinguishing Financial Factors MCB Bank carries the highest CASA base of around 93% of its total deposit base; MCB Bank has maintained one of the highest spreads in the industry over the last many years; MCB Bank has one of the highest return on assets of 1.89% as at December 31, 2017; One
Slide 7: Historical Trends
Historical Trends Rs. in Billions 1,327.3 515.1 1,051.8 1,004.4 934.6 815.5 367.7 767.1 322.5 322.3 653.2 268.2 274.1 269.7 272.8 567.6 262.4 249.9 509.2 229.7 443.6 410.5 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 657.0 968.5 555.9
Slide 8: Awards / Accolades in 2017 International Recognition
Awards / Accolades in 2017 International Recognition Euromoney Awards 2017 Best Investment Bank in Pakistan - Winner Asset AAA Islamic Finance Awards 2017 Project finance house, Pakistan Asset AAA Infrastructure Awards 2017 Project finance house of the year, Pakistan Renewable Energy deal of the yea
Slide 9: Awards / Accolades in 2017 Local Recognition
Awards / Accolades in 2017 Local Recognition CFA 14th Excellence Awards Corporate Finance House of the Year 2016 – Equity & Advisory – Runner Up ICAP & ICMAP Best Corporate Report Award 2016 - Winner
Slide 10: International Recognition Awards / Accolades
International Recognition Awards / Accolades Ranked among the Top 25 Companies in Pakistan Winner – Best Presented Annual “Winner -Best Corporate Report Accounts 2014 Award 2016 – Banking Sector” Best bank in Pakistan - 2016 1st Runner Up Best Presented Winner” - Best Corporate Report Award 2015 Bes
Slide 11: MCB Bank Limited Financial Performance
MCB Bank Limited Financial Performance December 31, 2017
Slide 12: Statement of Financial Position
Statement of Financial Position Rs. in mln Unconsolidated Consolidated Dec 2017 Dec 2016 YTD % Dec 2017 Dec 2016 YTD % Assets 1,327,311 1,051,814 275,497 26% 1,373,430 1,076,690 296,740 28% Advances - net 469,356 348,117 121,239 35% 500,966 364,470 136,496 37% Investments 656,964 555,929 101,035 18%
Slide 13: Statement of Financial Position
Statement of Financial Position Rs. in mln Net Assets Variance from YE 16 153,566 Net Assets 8.43% Assets 1,327,311 Liabilities 28.96% Liabilities 1,173,745 Assets 26.19% Assets Liabilities Net Assets 0% 5% 10% 15% 20% 25% 30% 35% Investor Relations MCB Bank Limited
Slide 14: Cash Flows
Cash Flows Rs. in mln 2017 2016 Financing (17,203) Financing (17,760) Operating Investing 21,593 (73,096) Operating 121,118 Investing 11,043 Operating Investing Financing Operating Investing Financing Investor Relations MCB Bank Limited
Slide 15: Advances and NPLs
Advances and NPLs Rs. in mln Advances (Gross) Classified Advances Segments by class of business PKR Mln Mix Var. % PKR Mln Mix Var. % Agri, feed, forestry , poultry 12,509 2.43% -10% 414 0.85% 34% Textile 78,548 15.25% 96% 13,628 27.97% 311% Chemical, Petroleum and pharmaceuticals 60,380 11.72% -5%
Slide 16: Concentration Level
Concentration Level Rs. in mln Advances (Gross) Classified Advances 2.43% 0.85% 13.85% 18.11% 15.25% 27.97% 8.03% 9.50% 3.53% 11.72% 2.13% 6.06% 5.19% 14.98% 4.37% 1.31% 4.96% 3.57% 7.61% 7.13% 23.21% 0.81% 1.25% 1.54% 1.54% 1.26% 1.08% 0.79% Agri, feed, forestry , poultry Textile Agri, feed, forest
Slide 17: Non Performing Loans (NPLs)
Non Performing Loans (NPLs) Coverage ratio* at 93.74% (YE16: 90.82%), NPLs ratio stands at 9.47%(YE16: 5.90%) Rs. in mln Dec 17 Sep 17 Jun 17 Mar 17 Dec 16 Total NPLs 48,753 49,251 22,478 21,162 21,688 QoQ (498) 26,773 1,316 (527) (318) QoQ % variance -1% 119% 6% -2% -1% Substandard 552 929 3,140 32
Slide 18: Investments
Investments Increase of Rs. 86.98B in Market Treasury Bills and increase of Rs. 22.71B in Pakistan Investment Bonds. Rs. In mln Dec 2017 Dec 2016 Var. % var. Sep 2017 Var. % var. Treasury Bills 384,367 297,386 86,982 29% 416,108 (31,741) -8% Pakistan Investment Bonds 222,838 200,132 22,706 11% 215,0
Slide 19: Deposits
Deposits Rs. in mln Q4 17 Q3 17 Q2 17 Q1 17 Q4 16 Volume Mix Volume Mix Volume Mix Volume Mix Volume Mix Deposits - Volume 968,483 962,500 891,551 818,950 781,430 Current deposits 377,083 39% 368,553 38% 368,779 41% 318,132 39% 298,032 38% Savings deposits 522,281 54% 530,883 55% 469,570 53% 454,369
Slide 20: Profit and Loss Statement
Profit and Loss Statement Rs. In mln Unconsolidated Consolidated Dec 2017 Dec 2016 +/- % Dec 2017 Dec 2016 +/- % Mark-up Income 74,091 67,400 6,691 10% 76,190 69,014 7,176 10% Mark-up Expense 31,684 23,586 8,098 34% 32,650 24,167 8,482 35% Net Mark-up Income 42,407 43,814 (1,407) -3% 43,540 44,847 (
Slide 21: Profit and Loss Statement
Profit and Loss Statement Rs. in mln PAT Variance from YE 16 22,459 PAT 3% Net Markup Income PBT -14% 42,407 Provision 3% PBT Operating Expenses 23% 31,014 Non Markup Income Non Markup Income 11% 17,960 Provision 673 Operating Net Markup Income -3% Expenses 28,679 -15% Investor Relations MCB Bank Li
Slide 22: Key Performance Ratios
Key Performance Ratios Coverage Non- EPS Infection Coverage (incl. benefit BV ROA ROE CAR ADR markup/Total (annualised) ratio ratio* of liquid Rev sec)** Dec 2017 115.18 1.89% 17.65% 19.56 16.44% 53.18% 9.47% 93.74% 97.31% 29.75% Sep 2017 116.54 2.16% 19.93% 22.47 17.34% 50.59% 10.11% 93.47% 97.34%
Slide 23: Thankyou
MCB Bank Limited Thankyou For further details on MCB Bank Limited, please visit www.mcb.com.pk For any query/comments/feedback, please e-mail investor.relations@mcb.com.pk