Mcb Bank Limited · PSX:MCB
Mcb Bank — Q2 2009 Earnings Presentation
21 slides from Mcb Bank's earnings presentation, August 2009
Slide 1: MCB Bank Limited Second Quarter 2009
MCB Bank Limited SECOND QUARTER 2009 August 2009
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION IS BEING PRESENTED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED, REDISTRIBUTED OR PASSED ON, DIRECTLY OR INDIRECTLY, TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE. The securities of MCB Bank Limited (the “Company”) have not been a
Slide 3: Important Information about Results Presentation
Important Information about Results Presentation Certain prior period financial numbers have been reclassified to conform to current period results presentation 3 HK000LN4_SCN_0906
Slide 4: Acquisition of RBS Pakistan by MCB
Acqusition Of RBS Pakistan by MCB 4 HK000LN4_SCN_0906
Slide 5: RBS - Transaction Overview
RBS - Transaction Overview MCB Bank Limited (“MCB”) has entered into an Agreement to purchase the Royal Bank of Scotland Limited (“RBS Pakistan”) from Royal Bank of Scotland Group plc The total consideration for the transaction is PKR 7.2 billion MCB will acquire 99.4% stake in RBS from the sponsors
Slide 6: Franchise Overview - Royal Bank of Scotland
Franchise Overview- Royal Bank of Scotland Overview Summary Profit and Loss (1) First foreign bank to open branches in Pakistan PKR mn 2006 2007 2008 post independence in 1948 Net Interest Income 4,223 6,077 5,768 Acquired Prime Commercial Bank in April 2007 Non Interest Income 1,751 2,163 3,811 whi
Slide 7: Strategic Rational – MCB's Acquisition of RBS
Strategic Rational – MCB’s Acquisition of RBS 5 1 Leading upscale Experienced franchise with robust management team with affluent & mass affluent proven track record customer base 2 4 Acquisition to foster Best practice in risk MCB’s asset base and management and target markets information technolog
Slide 8: Strategic Rational – MCB's Acquisition of RBS
Strategic Rational – MCB’s Acquisition of RBS 1Q09- Gross Advances pro-forma comparison– 2008- Asset Base – PKR bn PKR bn 1,000 843 500 452 448 750 800 390 642 400 324 562 600 458 300 257 204 400 348 200 200 100 0 0 NBP HBL UBL MCB Pro- MCB ABL NBP HBL UBL MCB Pro- MCB ABL forma forma 1Q09- Number o
Slide 9: MCB 2Q09 Results
MCB 2Q09 Results 9 HK000LN4_SCN_0906
Slide 10: 2Q 2009 Financial Highlights
2Q 2009 Financial Highlights Deposits were Rps. 362 Bn, an increase of 3% YoY and 7% QoQ- current deposits rose by 14% YoY Balance to Rps. 130 B Sheet Gross advances were Rps. 273 B, an increase of 14% YoY and 6% QoQ Net interest income increased 40% YoY and decreased1% QoQ to Rps. 9B Non interest i
Slide 11: 2Q 2009 Consolidated Highlights
2Q 2009 Consolidated Highlights O (U) PKR O (U) % PKR mm 2Q09 2Q08 1Q09 2Q08 1Q09 Net mark-up interest income 8,992 2,589 (104) 40% (1%) Non-interest income 1,104 80 (602) 8% (35%) Total Revenue 10,096 2,669 (706) 36% (7%) Profit bf. provisions and PF 6,576 1,679 (886) 34% (12%) Profit before Tax 5,
Slide 12: 2Q 2009 Standalone Highlights
2Q 2009 Standalone Highlights O (U) PKR O (U) % PKR mm 2Q09 2Q08 1Q09 2Q08 1Q09 Net mark-up interest income 8,990 2,589 (104) 40% (1%) Non-interest income 1,070 131 (618) 14% (37%) Total Revenue 10,060 2,720 (722) 37% (7%) Profit bf. Provisions & PF 6,487 2,427 (844) 60% (12%) Profit before Tax 5,45
Slide 13: 2Q 2009 - Consolidated Income Statement
2Q 2009 - Consolidated Income Statement O (U) PKR O (U) % PKR mm 2Q09 2Q08 1Q09 2Q08 1Q09 Mark-up Interest Earned 12,849 4,099 (155) 47% (1)% Mark-up Interest Expensed 3,857 1,510 (51) 64% (1%) Net mark-up / interest income 8,992 2,589 (104) 40% (1)% Non mark-up / interest income 1,104 80 (602) 8% (
Slide 14: Non Interest Income - Consolidated
Non Interest Income - Consolidated O (U) PKR O (U) % PKR mm 2Q09 2Q08 1Q09 2Q08 1Q09 Fee, commission and brokerage income 859 64 34 8% 4% Income earned as trustee to various funds 4 (2) 0 (28%) 3% Dividend income 81 49 14 154% 20% Income from dealing in foreign currencies (153) 36 (585) (19%) (135%)
Slide 15: Administrative Expenses - Standalone for 1H 2009
Administrative Expenses- Standalone for 1H 2009 2009 2008 O (U) % PKR Mil Personnel expenses 3,553 3,394 5% Rent, taxes, insurance, electricity 592 448 32% Legal and professional charges 91 95 (4)% Communications 459 389 18% Repairs and maintenance 217 219 (1)% Stationery and printing 170 149 14% Ad
Slide 16: Deposit Base
Deposit Base % Total O (U) PKR O (U) % PKR Bn 2Q09 2Q09 1Q09 2Q08 1Q09 2Q08 1Q09 Fixed deposits 57 16% 17% 27 0 89% (0)% Savings (1) 176 48% 49% -32 9 (15)% 6% Current (2) 130 36% 34% 16 14 14% 13% Total deposits 362 100% 100% 11 24 3% 7% CASA deposits 305 84% 83% -16 24 (5)% 8% Deposits increased b
Slide 17: Loan Portfolio
Loan Portfolio O (U) PKR O (U) % PKR bn 2Q09 2Q08 1Q09 2Q08 1Q09 Corporate 166 47 21 40% 14% Commercial 57 (15) (4) -21% -6% Consumer 30 (3) (1) -9% -4% Islamic 4 (3) (2) -45% -29% Other 16 7 2 76% 15% Gross advances 273 33 16 14% 6% ADR (gross) % 75% 68% 76% ADR (net) % 72% 65% 72% Total loan portf
Slide 18: Asset Quality
Asset Quality O (U) PKR O (U) % PKR mm 2Q09 2Q08 1Q09 2Q08 1Q09 2Q08 1Q09 Gross loans 272,906 240,178 256,663 32,729 16,243 14% 6% NPL 20,863 11,988 19,491 8,876 1,373 74% 7% Total provision 14,058 11,204 12,517 2,854 1,541 25% 12% NPL: Loans 7.64% 4.99% 7.59% Provision: NPLs 67.4% 93.5% 64.2% Non-p
Slide 19: NPLs
NPLs QoQ Change in MCB NPLs MCB NPLs breakdown by Category PKR Bil OAEM Substandard Doubtful Loss 6.0 4.9 5.0 11,988 13,320 18,269 19,491 20,863 100% 4.0 3.0 90% 2.0 1.3 1.4 1.2 80% 1.0 0.3 70% 55% 59% 0.0 64% 73% 72% ∆ Q2 08 ∆ Q3 08 ∆ Q4 08 ∆ Q1 09 ∆ Q2 09 60% 50% QoQ Change in System NPLs 40% PKR
Slide 20: Capital Strength
Capital Strength 2Q-09 Dec-08 Tier 1 capital ratio was 18% at 2Q 09 Capital Adequacy ratio was 19% at 2Q 09 Total assets 469,524 445,286 Tier 1 Capital 56,888 52,493 Tier 2 Capital 3,434 580 Risk weighted assets 319,285 330,372 Tier 1 Capital Ratio 17.8% 15.9% Tier 2 Capital Ratio 1.1% 0.2% Total Ca
Slide 21: Thank you Question & Answer Session
Thank you & Question & Answer Session HK000LN4_SCN_0906