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mc090205046
MBA
Finance
Introduction to MCB
History
Muslim Commercial Bank Ltd. Unfold 57-years
growth. MCB is not an overnight success story. The
bank started corporate life in Calcutta on July 9,
1947. After the partition of the Indo-Pak
Subcontinent, the bank moved to Dhaka from where it
commenced business in August 1948. In 1956, the
Bank transferred it Registered office to Karachi,
where the Head Office is presently located. Main
Muhammad Mansha Chairman and chief executive of
MCB
P
oAuto Loan
oBusiness
Sarmaya
oTractor finance
scheme
oMORTGAGE
S
oMCB ATM
Services
oMCB Mobile
Banking
oMCB Call
Center
D
oBasic Banking
Account (BBA)
oCurrent Account
oSaving Account
oBusiness
Account
Add Your
Title
Description
Authorize
capital
2007
2008
2009
6500
6500
6500
292,098
330,274
367,604
218,960
262,510
253,149
Investment
113,089
96,256
167,134
Borrowing
394,068
22,663
44,662
5,130
9,193
15,779
15,265
15,374
15,495
Deposits
Advances
Reserve
Profit after tax
Joining
Adjoining
15-10-2010
30-11-2010
Working Departments
1st week
Customer service
2nd week
Account
3rd week
Remittance
4th week
Departme
nt
Clearing
5th week
Cash
6th week
Leverage
Liquidity
Activity
Ratios
Profitability
Market
Current Ratio
Muslim Commercial Bank Limited
Ratio
Analysis
2008
2009
62411535/22201551
2.81
67584827/31897249
2.11
70824959/24020172
2.94
2009
2007
2008
2.94
2.11
2007
Current
Ratio
2.81
0
0.5
1.5
2.5
3.5
Ratio
Analysis
2008
2009
62411535/22201551
2.81
67584827/31897249
2.11
70824959/24020172
2.94
2009
Quick Ratio
2007
2008
2.94
2007
2.11
2.81
0
0.5
1.5
2.5
3.5
Ratio
Analysis
Working
Capital
Ratio
2007
2008
2009
62411535-22201551
40209984
67584827-31897249
35687578
70824959-24020172
46804787
46804787
35687578
40209984
2008
(Rs)
2009
(Rs)
39683883
39,631,172
38,774,871
3807519
4,043,100
6,009,993
Landings to
financial institutions
1051372
4,100,079
3,000,000
17868761
19,810,476
23,040,095
Total
62411535
67584827
70824959
Current Assets
2008
(Rs)
2009
(Rs)
Bills payable
10479058
10,551,468
8,201,090
Other liability
11722493
21,345,781
15,819,082
Total
22201551
31897249
24020172
Current Liabilities
Debt Ratio
Muslim Commercial Bank Limited
Ratio
Analysis
Debt Ratio =
Debt
Ratio
2007
2008
2009
355365842/410485517
385179850 /443615904
439483714/509,223,727
0.86
0.868
0.86
Debt Ratio
0.86
0.86
0.86
0.2
0.4
0.6
0.8
2007
(Rs)
2008
(Rs)
2009
(Rs)
Bills payable
10479058
10,551,468
8,201,090
Borrowing
39406831
22,663,840
44,662,088
Deposit and
other account
292098066
330,181,624
367,604,711
Other liability
11722493
21,345,781
15,819,082
Deferred tax
1180162
437,137
3,196,743
479232
385,179,850
439,483,714
liabilities net
Sub-ordinate
loan
Total
355365842
2007
(Rs)
2008
(Rs)
2009
(Rs)
39683883
39,631,172
38,774,871
3807519
4,043,100
6,009,993
Lending to financial
institution
1051372
4,100,079
3,000,000
Investment
113089261
96,631,874
167,134,465
Advances
218960598
262,135,470
253,249,407
Other asset
17868761
19,810,476
23,040,095
16024123
17,263,733
18,014,896
410485517
443615904
509223727
Debt /
Equity
Ratio
2007
2008
2009
355365842 /55119675
6.44
385179850 / 58436054
6.59
439483714 / 69740013
0.63
0.63
6.59
6.44
2008
2009
29173568 / 7,865,533
3.70
33428306 /11,560,740
2.89
38996408 /15,841,463
2.46
2009
2007
2.46
2008
Time
Interest
Earned
2.89
2007
Ratio
Analysis
3.7
Working of EBIT
EBIT
2007
(Rs)
2008
(Rs)
2009
(Rs)
21308035
21,867,566
23,154,945
7865533
11,560,740
15,841,463
Total
29173568
33428306
38996408
Total
Capitalizat
ion ratio
2007
2008
2009
1659394 /
1659394+5511967516
59394 / 56779069
0.02
437137 /
437137+58436054
437137 / 58873191
0.13
3196743 / 3196743+
69740013
3196743 / 72936756
0.04
Ratio
Analysis
0.04
0.13
0.02
0.02
0.04
0.06
0.08
0.1
0.12
0.14
Year 2007
(Rs)
Year 2008
(Rs)
Year 2009
(Rs)
Sub-ordinates
292098066
1180162
437,137
3,196,743
Liabilities against
assets subject to
finance lease
479232
293757460
437,137
3,196,743
loans
Total
Ratio
Analysis
2007
2008
2009
31786595 /410485517
0.07
40043824 /443615904
0.09
51616007 /509223727
0.10
Total
Asset
Turnover
0.1
2009 51616007
/509223727
0.09
2008 40043824
/443615904
0.07
0.05
2007
31786595/410485517
0.1
Ratio
Analysis
2007
2008
2009
31786595 /16024123
1.98
40043824 / 17263733
2.31
51616007 / 18014896
2.86
Fixed
Assets
Turnover
2009 51616007 /
18014896
2.86
2.31
2008 40043824 /
17263733
1.98
2007 31786595
/16024123
Net profit
Margin
2007
2008
2009
20,808,390 / 31786595
0.65 or 65.4%
20,526,669 / 40043824
0.51 or 51.2%
24,710,953 / 51616007
0.47 or 47.8%
Ratio
Analysis
2009 24,710,953 /
51616007
47.80%
1
51.20%
2008 20,526,669 /
40043824
65.40%
0.00%
20.00%
40.00%
2007 20,808,390 /
31786595
60.00%
80.00%
2007
2008
2009
Net markup /
interest income after
provisions
20856011
24,463,963
28,452,223
Add) Nonmarkup /
interest income
6011291
5,791,440
5,642,885
Less)
Nonmarkup /
interest expenses
26867302
8,387,837
10,940,163
21308035
21,867,566
23,154,945
Less) taxes
6042473
6,492,966
7,659,648
15265562
15,374,600
15,495,297
5542828
5,152,069
9,215,656
Net income
20808390
20,526,669
24,710,953
Return on Assets
Muslim Commercial Bank Limited
Ratio Analysis
Return on
Assets
2007
2008
2009
15265562/410485517*1
00
3.71%
15374600/443615904*1
00
3.46%
15495297/509223727*1
00
3.04%
Re turn on Asse ts
2009
15495297/509223727*1
00
3.04%
1
2008
15374600/443615904*1
00
3.46%
3.71%
2007
15265562/410485517*1
00
0.00%
1.00%
2.00%
3.00%
4.00%
2007
2008
2009
Net markup /
interest income after
provisions
20856011
24,463,963
28,452,223
Add) Nonmarkup /
interest income
6011291
5,791,440
5,642,885
Less)
Nonmarkup /
interest expenses
26867302
8,387,837
10,940,163
21308035
21,867,566
23,154,945
Less) taxes
6042473
6,492,966
7,659,648
15265562
15,374,600
15,495,297
Ratio
Analysis
Operating margin =
Operating
income
margin
2007
2008
2009
24,369/31786595
25,910 / 40043824
30,620 / 51616007
7.66 %
6.47%
5.93%
5.93
6.47
7.66
Ratio
Analysis
2008
2009
31786595/16082781
1.97
40043824 / 17320485
2.31
51616007 / 18099010
2.85
Return on
operating
Assets
2007
2.85
2.31
1.97
0.5
1.5
2.5
2007
2008
2009
233390
510,226
1,099,749
15607660
16,562,309
16,666,905
183073
191,198
248,242
16024123
17,263,733
18,014,896
Return on Equity
Muslim Commercial Bank Limited
Ratio
Analysis
Return on
equity
2007
2008
2009
15265562/45414156*10
0
33.6%
15374600/52244865*
100
29.4%
15495297/61075932*
100
25.4%
Return on Equity
2009
15495297/61075932*100
25.40%
1
2008
15374600/52244865*100
29.40%
2007
15265562/45414156*100
33.60%
0.00%
10.00%
20.00%
30.00%
40.00%
Total equity
2007
2008
2009
Share capital
6282768
6,282,768
6,911,045
Reserves
34000638
36,768,765
38,385,760
Un appropriated
profit
5130750
9,193,332
15,779,127
Total
45414156
52,244,865
61,075,932
Ratio
Analysis
2007
2008
2009
23921062 / 31786595
0.75
28483084 / 40043824
0.71
35774544 / 51616007
0.69
Gross
Profit
Margin
2009 35774544 /
51616007
0.69
2008 28483084 /
40043824
0.71
0.75
0.66
0.68
0.7
2007 23921062 /
31786595
0.72
0.74
0.76
2007
2008
2009
Markup / return /
interest earned
31786595
40,043,824
51,616,007
Less) Markup /
return / interest
expensed
7865533
11,560,740
15,841,463
Total
23921062
28,483,084
35,774,544
Ratio
Analysis
DuPont
return on
assets
Sales_____
Total Assets
2007
2008
2009
20,808,390/31786595
*
31786595/410485517
0.65*0.07
0.04
20,526,669 / 40043824
*
40043824 /443615904
0.41*0.09
0.03
24,710,953 / 51616007
*
51616007 /509223727
0.47*0.10
0.04
2009 24,710,953 /
51616007 * 51616007
/509223727 0.47*0.10
0.04
2008 20,526,669 /
40043824 * 40043824
/443615904 0.41*0.09
0.03
0.04
0.01
0.02
2007 20,808,390 /
31786595 * 31786595
/410485517 0.65*0.07
0.03
0.04
Ratio
Analysis
Dividend
per share
2007
2008
2009
4728496/ 691104527
400.0
9834175/ 691104527
125.9
6735510 / 691104527
219.7
219.7
125.9
400.0
100
200
300
400
500
Ratio
Analysis
Earning Per share = Profit Available to shareholders or Net income after tax
No of shares outstanding
Earning
per share
2007
2008
2009
20,808,390 / 1102183
20,526,669 / 921304
24,710,953 / 1118648
22.09
22.25
22.42
22.42
22.25
22.09
21.9
22
22.1
22.2
22.3
22.4
22.5
No of shares outstanding
= Net income after tax
EPS
EPS is available in balance sheet
Net income is available in P&L account of the
MCB
Ratio
Analysis
Price Earning Ratio = Current market Share price / Earning Per Share
Price
Earning
ratio
2007
2008
2009
18.11 * 22.09
400.0
5.66 *22.25
125.9
9.80 * 22.42
219.7
219.7
125.9
400.0
100
200
300
400
500
Conclusion
The overall analysis shows that MCB is in good condition
throughout the analysis years 2007
In the next year 2008 & 2009, there is decrease in the value of
profit as compare to previous year. During this year the
operating cost was max and its operational profit was
minimum as compare to previous year .The reason behind this
due to uncertainty in the process of increase in payables,
increase in capital work in progress and less investment
during this year.
Earning per share is also increase during these years for the
stocks holders and the persons interested in MCB investment.
Insufficient Staff in branches
Recommendation
MCB Should focus more on training needs of staff in line with
practical banking, especially IT based products
Bank should acquire modern automation system to provide
efficient and prompt service to the customers
Before lending loan to the client or financing a project a team
of expert should physically visit the site and then evaluate its
feasibility for investment. If the investment and project is
profitable then should go on otherwise should not invest.
Increase in Mobile Banking including ATM , online Banking
etc.
Take step to increase the profit.
Investment in assets should be appropriate.
LOGO