Mcb Bank Limited · PSX:MCB
Mcb Bank — FY2007 Earnings Presentation
25 slides from Mcb Bank's earnings presentation, 2008
Slide 1: MCB Bank 2007 Full Year Results
MCB Bank 2007 Full Year Results
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION IS BEING PRESENTED TO YOU SOLELY FOR YOUR INFO RMATION 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
Slide 3: Agenda
Agenda MCB Overview and Strategy Financial Performance 3 HK000LN4_SCN_0906
Slide 4: Pakistan: Economic & Political Outlook
Pakistan: Economic & Political Outlook GDP Growth Rate Inflation & Current Account Deficit 9.0% 9.3% 7.8% 8.0% 7.5% 7.0% 6.8% 6.6% 6.3% 4.9% 7.9% Inflation 4.6% 4.7% 3.1% 1.9% 2003 2004 2005 2006 2007 2008E -1.4% -3.9% -4.9% -6.5% 2003 2004 2005 2006 2007 2008E 2009E Current Account Balance* • *% of
Slide 5: Overview of MCB Bank
Overview of MCB Bank Snapshot Our Businesses Total assets: US $6.7Bn Wholesale Total deposits: US $4.7Bn Commercial & SME ROAA: 4.27% Consumer 4th largest bank in Pakistan Islamic (reach and footings) – 8% Investment Banking market share Treasury and Capital 125 cities, 1026 br
Slide 6: 2007: Year Of Significant Achievement & Change for MCB
2007:Year Of Significant Achievement & Change for MCB CEO - Atif Aslam Bajwa: Over 25 years of diverse international experience in Corporate and Consumer Banking WBG - Muhtashim Ashai: Over 15 years of financial sector experience in Pakistan and internationally; last 10 years with ABN AMRO Bank
Slide 7: Our Value Proposition and Positioning Going Forward
Our Value Proposition and Positioning Going Forward …To …To provide provide superior superior … …AndAnd become become the the leading leading Leverage Leverage our our strengths… strengths… customer customer experience… experience… financial financial services provider services provider Powerful b
Slide 8: Our Strategy
Our Strategy Diversify corporate portfolio by targeting new sectors and clients Wholesale Wholesale && Aggressive cross-sell to increase fee income Investment Investment Banking Banking Leverage / strengthen syndication and distribution capability Grow share of advisory business Continue s
Slide 9: 2008: Investing For Sustainable Growth
2008: Investing For Sustainable Growth Strategy Requirements Work Underway • Strengthen business units to deliver strategies Accelerated sales growth • Revamp sales structures / mechanisms as needed • More effective, orchestrated use of all channels • Develop deeper customer insight / segmentation S
Slide 10: Agenda
Agenda MCB Overview and Strategy Financial Performance 10 HK000LN4_SCN_0906
Slide 11: Key Performance Highlights
Key Performance Highlights PKR MM, except EPS & DPS 2007 2006 YOY % Line Items: Operating Revenues 30,010 26,223 14 Net Income 16,441 12,541 31 Year-End Advances 218,960 198,237 10 Year-End Assets 412,901 343,178 20 Year-End Deposits 292,088 257,185 14 Ratios: NIM (%) 8.08 8.37 Gross NPL Ratio(%) 4.
Slide 12: Continued Stellar Growth
Continued Stellar Growth 16,441 12,541 9,214 49.4% 39.4% 34.5% 34.7% 34.0% 33.6% 31.2% 28.0% 26.8% 18.6% 2,477 2,141 4.0% 4.3% 0.9% 1.0% 4x increase in ROAA 3.2% 2003 2004 2005 2006 2007 Net Income ROAA ROE Div Payout 12 HK000LN4_SCN_0906
Slide 13: Maintaining Industry Leading Efficiencies and Productivity
Maintaining Industry Leading Efficiencies and Productivity Share of Low Cost Deposits Net Interest Margin 9.0% 8.4% 7.7% 8.1% 6.4% 4.7% 92.6% 93.0% 86.5% 3.8% 86.0% 88.1% 2003 2004 2005 2006 2007 4Q06 4Q07 2003 2004 2005 2006 2007 Cost to Income* Yield/Cost of Funds 50.8% 54.8% 10.4% 11.4% 7.8% 6.2%
Slide 14: Superior Asset Quality
Superior Asset Quality PKR MM 100.4% 100.0% 93.1% 75.7% 61.9% 11,000 8,838 8,396 8,571 10,772 10.58% 6.14% 4.46% 4.14% 4.69% 2003 2004 2005 2006 2007 NPLs NPL Coverage Gross NPL Ratio 14 HK000LN4_SCN_0906
Slide 15: Summary Income Statement
Summary Income Statement (USD mm, except % % EPS & DPS) 4Q’07 4Q’06 4Q07 - 4Q06 2007 2006 ’07 – ’06 Net Interest Income 97 95 3% 389 350 11% Non Interest 21 22 (5%) 99 81 22% Income Operating Revenue 118 117 1% 488 431 14% Operating Expense 14 13 3% 92 108 (15)% Pre-Provision 118 105 13% 416 331 26%
Slide 16: Interest and Non Interest Income
Interest and Non Interest Income Net Interest Income (PKR MM) Non Interest Income (PKR MM) 2006 – 2007 Growth: 12% 2006 – 2007 Growth: 23% : 7% CAGR 03-07 6,077 % 35 5,723 GR: 23,933 A 7C 21,276 4,948 0 3- 0 4,691 4,234 14,976 7,248 7,028 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 NIM Non % 4
Slide 17: Operating Expense Analysis
Operating Expense Analysis Operating 15,000 4% Operating Expense Expense (PKR Mn) as % of 3.1 Average 12,000 2.89 Assets 3% 9,000 2.07 2.27 2% 1.47 6,000 7,623 7,434 1% 3,000 6,563 6,584 5,642 0 0% 2003 2004 2005 2006 2007 % YOY Growth (2.5) (11.7) 0.3 (14.3) Cost /Income 50.8 54.8 37.9 32.6 31.9 17
Slide 18: Summary Balance Sheet
Summary Balance Sheet (USD mm) 2004 2005 % 2005 2006 % 2006 2007 % Cash and Balances 401 396 (1%) 396 534 35% 534 646 21% with Banks Investments 1,131 1,178 4% 1,178 1,060 (10%) 1,060 1,877 77% Advances 2,311 3,020 31% 3,020 3,260 8% 3,260 3,562 9% Assets 4,363 5,019 15% 5,019 5,643 12% 5,643 6,717
Slide 19: Gross Loans Classification by Product Groups
Gross Loans Classification by Product Groups PKR MM 2% 250,000 AG R: 2 03 -07 C 2% 21% 200,000 50% 150,000 15% 100,000 1% 12% 50,000 0 Chg 2003 2004 2005 2006 1Q07 2Q07 3Q07 2007 ’06-’07 Consumer 1,212 6,725 12,174 19,603 22,801 26,466 27,062 33,743 72.1% Corporate 50,491 62,933 80,718 87,601 85,205
Slide 20: Consumer Assets Portfolio
Consumer Assets Portfolio PKR MM 40,000 Personal Loans re- launched June’06 35,000 Credit Cards launched Dec’06 30,000 25,000 % 0 G R: 13 7 CA 20,000 03- 0 15,000 10,000 5,000 % % Chg 0 2003 2004 2005 2006 2007 Portfolio ’06-’07 Credit cards 67 58 66 68 2,028 6 2882 Personal Loans 292 2,115 2,769 5,
Slide 21: Industry wise Concentration of Advances
Industry wise Concentration of Advances Agribusiness 0.9% Minning 0.1% Chemical 3.5% Textile 15.6% Others 29.5% Cemen t 2.3% Sugar 2.6% Leather 0.9% Automobile 0.2% Financial Individuals 13.9% 6.7% Services 1.7% Insurance 0.1% Commerce 10.0% Electronics 0.7% Communication Energy 6.5% 5.0% As on 31 D
Slide 22: Liabilities & Equity
Liabilities & Equity PKR MM Equity 2003 – 2007 CAGR: 51% Deposits 2003 – 2007 CAGR: 8% Equity 2006 – 2007 Growth: 36% Capital Adequacy* Deposits 2006 – 2007 Growth: 14% 57,547 2007 292,088 19.1% 16.6% 18.4% 42,185 15.6% 2006 12.8% 257,185 11.6% 9.7% 9.5% 8.5% 6.6% 24,673 2005 229,337 14,659 2004 221
Slide 23: Appendix
Appendix 23 HK000LN4_SCN_0906
Slide 24: Financial Highlights – Balance Sheet
Financial Highlights – Balance Sheet % % (PKR mm) 2003 2004 2005* 2006 2007 ’06 – ’07 ’03 – ’07 CAGR Cash and Balances 22% 24,054 23,833 23,666 32,466 39,684 13% with Banks Investments - Net 128,219 67,242 70,357 64,451 115,359 79% (3)% Advances – Net 97,200 137,318 180,323 198,237 218,960 10% 22% T
Slide 25: Financial Highlights – Income Statement
Financial Highlights – Income Statement % % (PKR mm) 2003 2004 2005* 2006 2007 ’06 – ’07 ’03 – ’07 CAGR Net Interest Income (1) 7,248 7,028 14,976 21,276 23,932 12% 35% Non Interest Income 4,530 4,947 5,723 4,948 6,077 23% 8% Operating Revenue 11,940 11,262 20,699 26,223 30,010 14% 26% Operating Exp