Mcb Bank Limited · PSX:MCB
Mcb Bank — FY2019 Earnings Presentation
26 slides from Mcb Bank's earnings presentation, Dec 31, 2019
Slide 1: MCB Bank Limited Investors Briefing
MCB Bank Limited Investors Briefing December 31, 2019 Presented by: Hammad Khalid Chief Financial Officer
Slide 2: Group Structure
Group Structure MCB Bank is majority owned by Nishat group, a prominent business conglomerate, having diversified interests in Textiles, Cement, Banking, Insurance, Power Generation, Hotel Business, Agriculture, Dairy, and Paper Products. To accede to international capital markets, the Bank launched
Slide 3: MCB Key Historical Milestones
MCB Key Historical Milestones 1974 2005 • 1st Pakistani Bank to issue • Incorporation • Privatization Global Depository Receipts • Nationalization • Change of name 1947 1991 2006 2012 2015 • Strategic Acquisition by • Deposits crossed PKR • Incorporation of MCB • Deposits crossed PKR • Assets crosse
Slide 4: Strategic Objectives
Strategic Objectives Delivering remarkable returns to stakeholders, sustainable performance, exceeding market and shareholder expectations Providing value added services through operational expansion, geography and upgraded system Building a corporate culture of equality, trust and team spirit
Slide 5: Vision & Mission
Vision & Mission Vision To be the leading financial services provider, partnering with our customers for a more prosperous and secure future. Mission We are a team of committed professionals, providing innovative and efficient financial solutions to create and nurture long-term relationships with ou
Slide 6: Key Performance Indicators
Key Performance 1 Indicators
Slide 7: One of the largest Commercial Bank in Pakistan
One of the largest Commercial Bank in Pakistan Financial Strength Domestic and International footprint PKR 1,515 bn Domestic Assets 1,399 (US$ 9.8 bn) Branches 11 PKR 1,144.7 bn Foreign Deposits (Sri Lanka : 8, Bahrain : 1, EPZ : 1, (US$ 7.4 bn) Branches UAE : 1) 1 Rep Office in Dubai MCB Financial
Slide 8: Market Capitalization - Rs. in Billion
Market Capitalization 500 Highest Market 350 Capitalization in Local 450 305.65 Banking Industry as on 300 December 31, 2019 400 237.82 Market Capitalization - Rs. in Billion 350 250 212.32 216.85 204.94 300 193.57 Per Share Value 200 250 150 200 340 150 100 252 265 243 229 241 100 50 50 - - 2019 20
Slide 9: Market Share
Market Share Market Share - Deposits 1,400 8.25% 8.5% 7.82% 7.86% 7.83% 1,200 8.0% 1,000 7.20% 7.5% Rs. in Billions 6.98% 800 7.0% 1,145 1,049 600 6.5% 968 781 400 6.0% 697 688 200 5.5% - 5.0% 2019 2018 2017 2016 2015 2014 Deposits Industry Share - Deposits Market Share - Advances 600 6.62% 6.93% 9%
Slide 10: Profitability
Profitability 45 3% 2.78% 2.63% 40 3% 35 2.16% 30 1.86% 2% Rs. in Billions 1.59% 25 1.50% 2% 42.3 40.1 20 36.7 36.1 32.1 15 31.0 1% 25.5 24.3 24.0 22.5 21.9 21.4 10 1% 5 0 0% 2019 2018 2017 2016 2015 2014 PBT PAT RoA
Slide 11: Profitability Ratios
Profitability Ratios 2019 2018 2017 2016 2015 2014 Profit before tax ratio % 29.00% 38.48% 41.86% 53.52% 52.65% 47.53% Gross Yield on Average Earning Assets "" 10.49% 6.41% 7.10% 7.56% 9.51% 10.05% Gross Yield on Avg. Earning Assets (incl. dividend & capital gains) "" 10.65% 6.61% 7.74% 8.36% 10.18%
Slide 12: Investments / Market Ratios
Investments / Market Ratios 2019 2018 2017 2016 2015 2014 Earnings per share (after tax)** Rs. 20.23 18.02 19.56 19.67 22.95 21.85 Earnings per share (before tax)** "" 33.84 27.06 27.02 32.41 38.03 33.00 Breakup value per share - without surplus on revaluation of fixed assets & investments "" 122.54
Slide 13: Asset Quality & Liquidity Ratios
Asset Quality & Liquidity Ratios 2019 2018 2017 2016 2015 2014 Gross Advances to deposits ratio % 47.17% 52.12% 53.18% 47.07% 46.29% 46.83% Net Advances to deposits ratio "" 43.39% 48.00% 48.46% 44.55% 43.65% 44.10% Investments to deposits ratio "" 65.41% 71.43% 67.83% 71.14% 81.18% 74.26% Weighted
Slide 14: Awards & Accolades
’) Awards & Accolades —— Bac —a—
Slide 15: Awards / Accolades in 2019
Awards / Accolades in 2019 The Asset Triple A Country Awards 2019 Transport Deal of the Year Utility Deal of the Year Best Bank - Pakistan Best Loan Adviser – Pakistan ICAP & ICMAP Best Corporate Report Award 2018 SAFA Award Certificate of Merit 2018 – Private Bank Category Asian Banking & Finance C
Slide 16: Awards/ Accolades
Awards/ Accolades “Winner -Best Corporate Report Award 2018 – Banking Sector” Winner” - Best Corporate Report Award 2017 Ranked among the Top 25 Companies Winner” - Best Corporate Report Award 2016 Best bank in Pakistan - 2019 in Pakistan Winner – Best Presented Annual Winner” - Best Corporate Repor
Slide 17: Financial Performance – December 2019
Financial 3 Performance – December 2019
Slide 18: Statement of Financial Position
Statement of Financial Position Rs. in Million Unconsolidated Consolidated Dec 2019 Dec 2018 YTD % Dec 2019 Dec 2018 YTD % Assets 1,515,152 1,498,130 17,022 1.1% 1,612,215 1,585,210 27,005 1.7% Advances - net 496,679 503,581 (6,902) -1.4% 548,473 566,792 (18,319) -3.2% Investments 748,765 749,369 (6
Slide 19: Non Performing Loans (NPLs)
Non Performing Loans (NPLs) Rs. in Million Coverage ratio* at 87.73% (YE18: 88.26 %), NPLs ratio stands at 9.15% (YE18: 8.95%) Dec 19 Sep 19 Jun 19 Mar 19 Dec 18 Total NPLs 49,424 51,506 48,150 49,337 48,956 QoQ (2,081) 3,355 (1,187) 381 1,876 QoQ % variance -4% 7% -2% 1% 4% Substandard 616 2,718 25
Slide 20: Investments
Investments Rs. in Million Increase of Rs. 165B in Pakistan Investment Bonds & decrease of Rs. 177B in Market Treasury Bills. Dec 2019 Dec 2018 Var. % var. Sep 2019 Var. % var. Treasury Bills 401,814 578,343 (176,529) -31% 554,337 (152,523) -28% Pakistan Investment Bonds 292,723 127,914 164,809 129%
Slide 21: Deposits
Deposits Rs. in Million Q4 19 Q3 19 Q2 19 Q1 19 Q4 18 Volume Mix Volume Mix Volume Mix Volume Mix Volume Mix Deposits - Volume 1,144,763 1,145,140 1,148,631 1,066,013 1,049,038 Current deposits 424,552 37% 416,922 36% 437,496 38% 406,850 38% 401,899 38% Savings deposits 610,511 53% 615,472 54% 604,6
Slide 22: Profit and Loss Statement
Profit and Loss Statement Rs. in Million Unconsolidated Consolidated Dec 2019 Dec 2018 +/- % Dec 2019 Dec 2018 +/- % Mark-up Income 138,292 83,319 54,973 66.0% 148,089 87,502 60,586 69.2% Mark-up Expense 78,676 37,305 41,371 110.9% 84,371 39,496 44,875 113.6% Net Mark-up Income 59,616 46,014 13,602
Slide 23: Key Performance Ratios
Key Performance Ratios Coverage Non- Infection Coverage (incl. benefit BV ROA ROE EPS CAR ADR markup/Total ratio ratio* of liquid Rev sec)** Dec 2019 122.54 1.59% 16.84% 20.23 18.83% 47.17% 9.15% 87.73% 95.04% 21.86% Dec 2018 117.74 1.50% 15.48% 18.02 18.13% 52.12% 8.95% 88.26% 94.49% 27.21% Dec 201
Slide 24: Historical Trends
Historical Trends Rs. in Billion Total Assets CAGR 12% 1,515.2 1,498.1 1,343.2 1,072.4 1,004.4 934.6 815.5 767.1 653.2 567.6 509.2 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Investments CAGR 16% 748.8 749.4 657.0 555.9 565.7 511.1 449.0 402.1 316.7 213.1 167.1 2019 2018 2017 2016 2015 20
Slide 25: Historical Trends
Historical Trends Rs. in Billion Gross Advances CAGR 7% 540.0 546.8 515.1 367.7 322.5 322.3 268.2 262.4 274.1 269.7 249.9 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Deposits CAGR 12% 1,144.8 1,049.0 968.5 781.4 696.8 688.3 632.3 545.1 491.2 431.4 367.6 2019 2018 2017 2016 2015 2014 2013
Slide 26: 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