Mcb Bank Limited · PSX:MCB
Mcb Bank — FY2020 Earnings Presentation
19 slides from Mcb Bank's earnings presentation, Dec 31, 2020
Slide 1: MCB Bank Limited IR Presentation December 31, 2020
MCB Bank Limited IR Presentation December 31, 2020 Presented by: Hammad Khalid Chief Financial Officer
Slide 2: Financial and Operational Landscape
Financial and Operational Landscape Financial Strength Domestic and International Footprint PKR 1,757.5 bn Domestic Assets 1,418 (US$ 10.9 bn) Branches 11 PKR 1,289.5 bn Foreign Deposits (Sri Lanka : 8, Bahrain : 1, (US$ 8.1 bn) Branches EPZ : 1, UAE : 1) PKR 513.6 bn Advances (Gross) MCB - Arif Hab
Slide 3: Financial Performance
Financial Performance December 31, 2020
Slide 4: Statement of Financial Position
Statement of Financial Position Increase of 16% in Assets base Rs. in mln Investments: Dec 2020 Dec 2019 Var. % var. Sep 2020 Var. % var. T-Bills : +202B PIBs : +57B ASSETS 1,757,462 1,515,152 242,310 15.99% 1,674,869 82,593 5% Advances - net 462,942 496,679 (33,737) -6.79% 445,039 17,902 4% - Gross
Slide 5: Non Performing Loans (NPLs)
Non Performing Loans (NPLs) Coverage ratio* at 98.87% (YE19: 87.73%), NPLs ratio stands at 9.97% (YE19: 9.15%) Rs. in mln Domestic NPLs Ratio at 8.84% (YE19:8.14%), Industry NPL ratio Sep’20:9.91% (YE19:8.58%) YTD (Dec 20 vs. Dec 19) Dec 20 Sep 20 Jun 20 Mar 20 Dec 19 Var. % Total NPLs 1,765 3.6% To
Slide 6: Investments
Investments Increase of Rs. 202B in Market Treasury Bills & Rs. 57B in Pakistan Investment Bonds. Rs. In mln 3M 6M 1Y 59% 23% 18% 3Y 5Y 10Y & Above Dec 2020 Dec 2019 Var. % var. Sep 2020 Var. % var. 27% 32% 41% TBs Treasury Bills 598,470 396,221 202,249 51% 550,709 47,761 9% PIBs Pakistan Investment
Slide 7: Deposits
Deposits Rs. in mln CASA reported at 92.96%, Current Deposits +15% , Saving Deposits YTD increase/decrease YTD +16%, & Term Deposits -17%. Current deposits 15% 64,833 Savings deposits 16% 98,889 CASA 16% 163,722 Term Deposits -17% (18,983) Total Deposits 13% 144,739 Q4 20 Q3 20 Q2 20 Q1 20 Q4 19 Vol
Slide 8: Profit and Loss Statement
Profit and Loss Statement PBT of Rs. 48.25B (+20.31%) and PAT of Rs. 29.04B (+21.11%) Markup Income: Rs. in mln On Investments: +16.50B Dec 2020 Dec 2019 Var. % var. On Lending to FIs : -3.98B On Advances: -14.45B Mark-up Income 136,076 138,292 (2,216) -1.6% Markup Expense: Mark-up Expense 64,741 78
Slide 9: Core Earnings
Core Earnings Rs. in mln Dec 2020 Dec 2019 Var. % var. Net Mark-up Income 71,334 59,616 11,718 20% Non Interest Income * 16,956 14,565 2,391 16% Total Income 88,290 74,181 14,109 19% Non Mark-up Expense** 34,249 34,154 95 0% Profit before Provisions 54,041 40,027 14,014 35% Provisions*** 7,349 (289)
Slide 10: Spread
Rs. in mln December 2020 December 2019 Variance Variance Analysis Spread Average Rate Markup Average Rate Markup Volume Price/ bps Markup Volume Price Markup Volume Volume Variance Variance Inc/ Exp Assets Cash 26,488 - - 24,006 - - 2,482 - - - - - Balance with Banks 104,342 0.21 215 89,956 0.55 499
Slide 11: Key Performance Indicators
Key Performance Indicators September 30, 2020 Key Performance Indicators December 31, 2020
Slide 12: Key Performance Indicators
Key Performance Indicators Cost to Income Ratio Quarterly Operating expenses excluding PF • C / I ratio averages 41.9% for last 8 quarters • Resulting into flat OPEX line • C / I ratio improving to 36.9% in Q4-20 • Strategic cost efficiency drive 48.70% 46.15% 45.83% 43.40% 8.45 40.86% 37.97% 35.79%
Slide 13: Comparative Performance
Comparative Performance Admin Expenses Profit after Tax (PAT) (Excluding PF Reversal) Significant increase of 21.1% in PAT over Dec-19. Efficient cost management leads to 0.4% decrease Rs. in Billion over Dec-19. 29.04 Rs. in Billion 33.12 23.98 32.99 Dec 2019 Dec 2020 Dec-19 Dec-20 Deposits Coverag
Slide 14: Domestic Deposits - Growth
Domestic Deposits - Growth Domestic Deposits – Bln PKR Domestic Current Deposits – Bln PKR 60 73 76 79 467 451 456 91 99 94 414 81 389 394 389 411 698 702 703 601 611 607 652 561 389 414 394 389 411 467 451 456 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-19 Jun-19 Sep-19 Dec-19 Mar-2
Slide 15: Group Financial Performance
Group Financial Performance September 30, 2020 Group Financial Performance December 31, 2020
Slide 16: Statement of Financial Position
Statement of Financial Position Rs. in Million Unconsolidated Consolidated Dec 2020 Dec 2019 YTD % Dec 2020 Dec 2019 YTD % Assets 1,757,462 1,515,152 242,310 16.0% 1,891,276 1,612,215 279,062 17.3% Advances - net 462,942 496,679 (33,737) -6.8% 547,686 548,473 (787) -0.1% Investments 1,015,869 748,76
Slide 17: Profit and Loss Statement
Profit and Loss Statement Rs. in Million Unconsolidated Consolidated Dec 2020 Dec 2019 +/- % Dec 2020 Dec 2019 +/- % Mark-up Income 136,076 138,292 (2,216) -1.6% 145,772 148,089 (2,316) -1.6% Mark-up Expense 64,741 78,676 (13,934) -17.7% 69,929 84,371 (14,442) -17.1% Net Mark-up Income 71,334 59,616
Slide 18: Awards/ Accolades
Awards/ Accolades “Winner -Best Corporate Report Award Winner – Best Presented Annual Accounts 2019 – Banking Sector” Ranked among the Top 25 Companies in 2014 Winner” - Best Corporate Report Award 2018 Best bank in Pakistan - 2019 Pakistan 1st Runner Up Best Presented Annual Report Awards Winner” -
Slide 19: Thank you!
Thank you! For more information write to us on info@mcb.com.pk. For any investor related query/comments/feedback, please e-mail investor.relations@mcb.com.pk