MCB Bank Limited · PSX:MCB
MCB Bank — Investor Presentation (December 2019)
16 slides from MCB Bank's investor presentation, Dec 10, 2019
Slide 1: Corporate Briefing MCB Bank Limited
Corporate Briefing MCB Bank Limited (December 10, 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: One of the largest Commercial Bank in Pakistan
One of the largest Commercial Bank in Pakistan Financial Strength Domestic and International footprint PKR 1,581.5 bn Domestic Assets 1,382 (US$ 10.1 bn) Branches 11 PKR 1,145.1 bn Foreign Deposits (Sri Lanka : 8, Bahrain : 1, EPZ : 1, UAE : (US$ 7.3 bn) Branches 1) 1 Rep Office in Dubai PKR 533.3bn
Slide 4: Statement of Financial Position
Statement of Financial Position Rs. In mln Increase of 6% in Assets base Sep 2019 Dec 2018 Var. % var. Sep 2018 Var. % var. ASSETS 1,581,493 1,498,130 83,363 6% 1,310,653 270,840 21% Investments: Advances - net 490,255 503,581 (13,326) -3% 487,501 2,755 1% PIBs : +138B - Gross Advances 533,341 546,7
Slide 5: Group Wise Advances
Group Wise Advances Rs. In mln Sep 2019 Dec 2018 Var. % var. Sep 2018 Var. % var. Advances (gross) 533,341 546,792 (13,451) -2% 531,405 1,936 0% RBG North 54,099 64,419 (10,320) -16% 57,332 (3,233) -6% RBG South 40,841 46,531 (5,690) -12% 41,433 (591) -1% Corporate 343,811 349,586 (5,775) -2% 347,69
Slide 6: Non Performing Loans (NPLs)
Non Performing Loans (NPLs) Rs. in mln Coverage ratio* at 83.65% (YE18: 88.26 %), NPLs ratio stands at 9.66% (YE18: 8.95%) Sep 19 Jun 19 Mar 19 Dec 18 Sep 18 Total NPLs 51,506 48,150 49,337 48,956 47,080 QoQ 3,355 (1,187) 381 1,876 (51) QoQ % variance 7% -2% 1% 4% 0% Substandard 2,718 253 1,687 1,52
Slide 7: Investments
Investments Increase of Rs. 138B in Pakistan Investment Bonds & decrease of Rs. 24B in Market Treasury Bills. Rs. In mln Sep 2019 Dec 2018 Var. % var. Sep 2018 Var. % var. Treasury Bills 554,337 578,343 (24,006) -4% 276,054 278,283 101% Pakistan Investment Bonds 265,746 127,914 137,832 108% 134,228
Slide 8: Deposits
Rs. in mln Deposits YTD increase/decrease YTD CASA reported at 90.15%, Increase recorded in Saving Deposits +11%, Current deposits 4% 15,023 Current Deposits +4% & Term Deposits +20%. Savings deposits 11% 62,558 CASA 8% 77,581 Term Deposits 20% 18,521 Total Deposits 9% 96,102 Q3 19 Q2 19 Q1 19 Q4 18
Slide 9: Profit and Loss Statement
Profit and Loss Statement PBT of Rs. 27.51B (+18.0%) and PAT of Rs. 16.29B (+13.8%) Rs. in mln Markup Income: Sep 2019 Sep 2018 Var. % var. On Advances: +15.31B On Investments: +20.95B On Lendings to FIs : +3.02B Mark-up Income 98,450 58,926 39,524 67% Mark-up Expense 55,456 25,000 30,456 122% Marku
Slide 10: Core Earnings
Core Earnings Rs. in mln Sep 2019 Sep 2018 Var. % var. Net Mark-up Income 42,994 33,926 9,068 27% Non Interest Income * 10,652 10,076 575 6% Total Income 53,646 44,003 9,643 22% Non Mark-up Expense** 25,652 24,036 1,616 7% Profit before Provisions 27,994 19,967 8,027 40% Provisions*** (611) (2,799)
Slide 11: Spread
Rs. in mln September 2019 September 2018 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 24,566 - - 27,003 - - (2,437) - - - - - Balance with Banks 87,910 0.60 393 73,695 0.29
Slide 12: Administrative Expenses
Rs. in mln Administrative Expenses Sep 2019 Sep 2018 Var. % Total compensation expense 11,323 10,140 1,184 12% Property expense Rent and taxes 272 1,512 (1,240) -82% Insurance 16 19 (4) -18% Utilities cost 849 808 41 5% Fuel expense generators 391 376 15 4% Security (including guards) 1,073 1,193 (1
Slide 13: Key Ratios
Key Ratios Coverage Non- EPS Infection Coverage (incl. benefit BV ROA ROE CAR ADR markup/Total (annualised) ratio ratio* of liquid Rev sec)** Sep 2019 120.08 1.42% 15.52% 18.45 18.15% 46.57% 9.66% 83.65% 90.98% 21.03% Dec 2018 117.74 1.50% 15.48% 18.02 18.13% 52.12% 8.95% 88.26% 94.49% 27.21% Dec 20
Slide 14: Consolidated Results – September 30, 2019
Consolidated Results – September 30, 2019 Profit (before tax) of the group reported at Rs. 27.49B, an increase of 22.4% over September 2018 • Net interest income of Rs. 46.02B – increased by 30.9% • Non interest income of Rs. 12.02B – decreased by 4.4% • Admin exp (excl. impact of pension cost) of R
Slide 15: Awards/ Accolades International Recognition
International Recognition Awards/ Accolades “Winner -Best Corporate Report Award 2018 – Banking Sector” Ranked among the Top 25 Companies Winner” - Best Corporate Report Award 2017 in Pakistan Winner – Best Presented Annual Winner” - Best Corporate Report Award 2016 Best bank in Pakistan - 2019 Acco
Slide 16: Thank you
MCB Bank Limited Thank you 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