Slide 1: MCB Bank Limited Investors Briefing
MCB Bank Limited Investors Briefing Financial Performance Analysis December 31, 2016 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: 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 4: One of the largest Commercial Bank in Pakistan
One of the largest Commercial Bank in Pakistan Financial Strength Domestic and International footprint PKR 1,052 bn Domestic Assets 1,227 (US$ 10.1 bn) Branches 11 PKR 781 bn Foreign Deposits (Sri Lanka : 8, Bahrain : 1, EPZ : 1, (US$ 7.4bn) Branches UAE : 1) 1 Rep Office in Dubai PKR 368 bn MCB Fin
Slide 5: Statement of Financial Position
Statement of Financial Position Rs. in mln Unconsolidated Consolidated 2016 2015 YTD % 2016 2015 YTD % Assets 1,051,814 1,004,410 47,404 5% 1,076,690 1,020,980 55,710 5% Advances - net 347,980 304,122 43,858 14% 364,334 316,771 47,562 15% Investments 555,929 565,696 (9,767) -2% 556,770 566,564 (9,79
Slide 6: Statement of Financial Position
Statement of Financial Position Rs. in mln Net Assets 141,627 Variance from YE 15 Net Assets 2.78% Liabilities 5.03% Liabilities 910,187 Assets Assets 4.72% 1,051,814 0% 1% 2% 3% 4% 5% 6% Assets Liabilities Net Assets Investor Relations MCB Bank Limited
Slide 7: Cash Flows
Cash Flows Rs. in mln 2016 2015 Financing (17,167) Financing (17,760) Operating 21,593 Investing Operating (50,942) 82,440 Investing 11,043 Operating Investing Financing Operating Investing Financing Investor Relations MCB Bank Limited
Slide 8: Non Performing Loans (NPLs)
Non Performing Loans (NPLs) Rs. in mln Coverage ratio* at 90.82% (YE15: 90.37 %), NPLs ratio stands at 5.90% (YE15: 6.32 %) Dec 16 Sep 16 Jun 16 Mar 16 Dec 15 YTD (Dec 16 vs. Dec 15) Var. % Total NPLs 1,320 6.48% Total NPLs 21,688 22,006 20,557 20,774 20,368 Substandard 75 100% QoQ (318) 1,450 (217)
Slide 9: Investments
Investments Rs. In mln Increase of Rs. 70.18B in Market Treasury Bills and decrease of Rs. 79.91B in Pakistan Investment Bonds. Dec 2016 Dec 2015 Var. % var. Sep 2016 Var. % var. Treasury Bills 297,386 227,208 70,177 31% 233,665 63,721 27% Pakistan Investment Bonds 200,132 280,042 (79,910) -29% 209,
Slide 10: Concentration of Advances
Concentration of Advances Advances (Gross) Classified Advances 10.81% 3.78% 10.89% 34.75% 2.68% 6.90% 2.24% 13.58% 1.43% 17.24% 3.46% 16.45% 3.53% 6.21% 15.27% 8.31% 5.66% 14.33% 7.29% 0.79% 0.32% 4.14% 6.17% 0.75% 1.71% 0.01% 0.00% 1.31% Investor Relations MCB Bank Limited
Slide 11: Deposits
Deposits Rs. in mln Q4 16 Q3 16 Q2 16 Q1 16 Q4 15 Volume Mix Volume Mix Volume Mix Volume Mix Volume Mix Deposits - Volume 781,430 754,885 755,434 721,930 696,805 Current deposits 298,032 38% 288,869 38% 301,322 40% 274,974 38% 257,789 37% Savings deposits 437,519 56% 422,381 56% 411,309 54% 406,644
Slide 12: Profit and Loss Statement
Profit and Loss Statement Rs. In mln Unconsolidated Consolidated 2016 2015 +/- % 2016 2015 +/- % Mark-up Income 67,422 80,393 (12,971) -16% 69,036 80,841 (11,805) -15% Mark-up Expense 23,655 31,077 (7,422) -24% 24,236 31,172 (6,936) -22% Net Mark-up Income 43,767 49,316 (5,549) -11% 44,800 49,669 (4
Slide 13: Profit and Loss Statement
Profit and Loss Statement Rs. in mln Variance from YE 15 PAT 21,891 PAT -14% Net Markup PBT -15% Income 43,767 Provision 30% Operating Expenses 1% PBT 36,075 Non Markup Non Markup Income -2% Income 16,222 Provision Operating Net Markup Income -11% 654 Expenses 23,260 -15% Investor Relations MCB Bank
Slide 14: Distinguishing Financial Factors
Distinguishing Financial Factors Deposits 781B (+12%) CASA 94% Assets 1,052B(+5%) Dividend Infection Yield 5.90% 6.73% Cost to Income 36.80% RoE 18.94% Advances 368B (+14%) RoA 14 2.13% Investor Relations MCB Bank Limited
Slide 15: Historical Trends
Historical Trends Rs. in Billions 367.7 1,051.8 1,004.4 322.5 322.3 934.6 815.5 268.2 274.1 269.7 272.8 262.4 767.1 249.9 229.7 653.2 206.8 567.6 509.2 443.6 410.5 342.1 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 555.9 565.7 781.4 51
Slide 16: 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 2016 105.97 2.13% 18.94% 19.67 19.33% 47.05% 5.90% 90.82% 98.76% 27.04% Sep 2016 105.23 2.35% 20.18% 20.88 19.94% 46.69% 6.24% 81.84% 89.76% 2
Slide 17: International Recognition Awards / Accolades
International Recognition Awards / Accolades Ranked among the Top 25 Winner – Best Presented Annual “Winner -Best Corporate Report Companies in Pakistan Accounts 2014 Award 2015 – Banking Sector” 1st Runner Up Best Presented Winner” - Best Corporate Report Award 2014 Best bank in Pakistan - 2016 Ann
Slide 18: 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