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In the name of Allah the most beneficent ,the most merciful
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In the name of Allah the most beneficent ,the most merciful
Muhammad Khalid
Mc100203060
MBA
Finance
Muhammad Khalid
Mc100203060
MBA
Finance
Introduction to MCB Bank Ltd.
A bank is a financial institute which deal in money And credit.
It receive the deposit and make the loans
History of MCB bank
Muslim commercial bank limited. MCB bank is the one of the leading bank of the Pakistan MCB have the experience over 50 year in Pakistan and the hard work which make it leading organization in the present scenario .MCB is not make the overnight success story but behind the success of the MCB is the hardworking and the full dedication MCB incorporated by the Adamjee group, during in 1960s the bank grew rapidly with the concentration on trade finance products. In 1947, MCB was nationalized along with the private bank and then MCB privatized in 1991 during the Nawaz Sharif‘s government financial sector deregulation policies
Product and Services of MCB
Al-Makhraj saving account IANAT account Al-Makhraj TDR
Saving 365 goldSaving extraSmart dollar accountSaving accountCurrent accountCurrent life accountForeign currency account
Auto loanCredit CardsVisa Debit card MCB visa platinumMCB visa MCB visa Prepaid
Competitor of MCB
United Bank Limited
Allied Bank Limited
Habib Bank Limited
Askari Bank Limited
Alfalah Bank Limited
Business volume of MCB
Details 2008 2009 2010Total Assets 443,615,90
4509,223,727
567,552,613
Deposits 330,181,624
367,604,711
431,371,937
Advances-net 262,135,470
253,249,407
254,551,589
Investments-net 96,631,874 167,134,465
213,060,882
Shareholder’s Equity
52,244,865 61,075,932 488,348,404
Profit before Taxation
21,867,566 23,154,945 26,253,075
Profit after Taxation 15,374,600 15,495,297 16,873,175
Earning per Share(Rs.)
22.25 20.38 22.20
Organizational Hierarchy Chart
President
Chairman
Vice president
Chief Financial Advisor
Audit Committee
Regional Manager
Branch Manager
Senior Vice President
Training Program
Starting Date
Ending Date
10 November 2011
24 December 2011
My Working Departments
Account opening
Remittances
Cash
Clearing
Credit
6th Week
5th Week
4th Week
3rd Week
2 Weeks
Ratio Analysis Ratio Analysis
Ratio analysis Muslim Commercial Bank Limited
(Net profit after taxation / net sale) * 100
Net profit margin
Year 2008 Year 2009 Year 2010
15374600/40043824
*100
= 38.39 %
15495297/51616007
*100
= 30.02%
16873175/54821296*100
= 30.78 %
0
10
20
30
40
2008 2009 2010
Net Profit Margin
Net Profit Margin
Ratio analysis Muslim Commercial Bank Limited
Net interest margin / mark-up earned
Gross spread ratio
Year 2008 Year 2009 Year 2010
28,483,084 / 40,043,824
=0.71 times
35,774,544/ 51,616,007
=0.69 times
36,833,529/ 54,821,296
=0.67 times
0.65
0.66
0.67
0.68
0.69
0.7
0.71
2008 2009 2010
Gross Spread Ratio
Gross SpreadRatio
Ratio analysis Muslim Commercial Bank Limited
Non interest income / total income
Non Interest income to total income ratio
Year 2008 Year 2009 Year 2010
30255403 / 70299277
=0.43 times
34095108 / 85711115
=0.39 times
39501718/94323014
=0.41 times
0.37
0.38
0.39
0.4
0.41
0.42
0.43
2008 2009 2010
Non Interest Income to Total Income Ratio
Non Interest Income toTotal Income Ratio
Ratio analysis Muslim Commercial Bank Limited
Interest earned / interest expenses
Spread ratio Year 2008 Year 2009 Year 2010
40,043,824/11,560,740
=3.46 times
51,616,007/15,841,463
=3.258 times
54,821,296/17,987,767
=3.047 times
2.8
2.9
3
3.1
3.2
3.3
3.4
3.5
2008 2009 2010
Spread Ratio
Spread Ratio
Ratio analysis Muslim Commercial Bank Limited
(Earning before income tax / total assets) * 100
Return on Assets
Year 2008 Year 2009 Year 2010
21867566/443615904 *100
=4.93 %
23154945/509223727 *100
=4.55 %
26253075/567552613 *100
=4.63 %
4.2
4.4
4.6
4.8
5
2008 2009 2010
Return on Assets(ROA)
Return onAssets(ROA)
Ratio analysis Muslim Commercial Bank Limited
(Net income / sale) * (sale / total assets) * 100
DuPont Return on Assets
Year 2008 Year 2009 Year 2010
(0.3839*0.090267) * 100
=3.47 %
(0.3002*0.101362) * 100
=3.04 %
(0.3077*0.096592) * 100
=2.97 %
2.6
2.8
3
3.2
3.4
3.6
2008 2009 2010
DuPont Return on Assets
DuPont Return onAssets
Ratio analysis Muslim Commercial Bank Limited
(Net income / total equity) * 100
Return on total Equity
Year 2008 Year 2009 Year 2010
15,374,600/ 52,244,865 * 100
= 29.43 %
15,495,297/ 61,075,932*100
=25.37%
16,873,175/ 69180,011*100
=24.39 %
0
5
10
15
20
25
30
2008 2009 2010
Return on Total Equity
Return on TotalEquity
Ratio analysis Muslim Commercial Bank Limited
Total Liabilities / Total Assets
Debt Ratios Year 2008 Year 2009 Year 2010
385,179,850 / 443,615,904
= 0.87 Times
439,483,714 / 509,223,727
= 0.86 Times
488,348,404 / 567,552,613
= 0.86 Times
0.854
0.856
0.858
0.86
0.862
0.864
0.866
0.868
0.87
2008 2009 2010
Debt Ratio
Debt Ratio
Ratio analysis Muslim Commercial Bank Limited
Total liabilities / total share holder Equity
Debt / Equity Ratio
Year 2008 Year 2009 Year 2010
385,179,850 / 525,244,865
=7.37 Times
439,483,714 / 61,075,932
=7.19 times
488,348,404 / 69,180,011
=7.06 times
6.9
7
7.1
7.2
7.3
7.4
2008 2009 2010
Debt to Equity Ratio
Debt to Equity Ratio
Ratio analysis Muslim Commercial Bank Limited
Earning before Income Tax (EBIT) / Interest Expenses
Times Interest Earned
Year 2008 Year 2009 Year 2010
33,428,306 / 11,560,740
=2.89 times
38,996,408 / 15,841,463
=2.46 times
44,240,842 / 17,987,767
=2.46 times
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2008 2009 2010
Times Interest Earned
Times Interest Earned
Ratio analysis Muslim Commercial Bank Limited
Advance / deposit
Advance / deposit ratio
Year 2008 Year 2009 Year 2010
262,135,470/330,181,624
=0.79 times
253,294,407/367,604,711
=0.69 times
254,551,589/431,371,937
=0.59 times
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
2008 2009 2010
Advance to Deposit Ratio
Advance to DepositRatio
Ratio analysis Muslim Commercial Bank Limited
Operating cash flow / current liabilities
Operating cash flow ratio
Year 2008 Year 2009 Year 2010
20,315,38/384742713
=0.0052 times
78,148,082/436286971
=0.179 times
58,701,161/483414386
=0.121 times
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
0.18
2008 2009 2010
Operating Cash Flow Ratio
Operating Cash FlowRatio
Ratio analysis Muslim Commercial Bank Limited
Total dividend / no. of outstanding shares
Dividend per share
Year 2008 Year 2009 Year 2010
98,341,75/628276.8
=15.65 Rs.
67 355,10 / 691104.5
=9.75 Rs.
85,675,47 / 760215
=11.27 Rs.
0
2
4
6
8
10
12
14
16
2008 2009 2010
Dividend per Share
Dividend per Share
Ratio analysis
Muslim Commercial Bank Limited
Net income / number of outstanding
Earning per share
Year 2008 Year 2009 Year 2010
15,374,600 / 628276.8
=24.47 Rs.
15,495,297/691104.5
=22.42 Rs.
16,873,175 / 760215
=22.19 Rs.
21
21.5
22
22.5
23
23.5
24
24.5
2008 2009 2010
Earning per Share
Earning per Share
Ratio analysis Muslim Commercial Bank Limited
Market value per share / earning per share
Price / earning ratio
Year 2008 Year 2009 Year 2010
125.81 / 24.471061
=5.14 Rs.
219.68 / 22.421062
=9.79 Rs.
228.54 /22.195267
=10.29 Rs.
0
2
4
6
8
10
12
2008 2009 2010
Price / Earning Ratio
Price / Earning Ratio
ConclusionDuring my internship in MCB bank I conclude that the organization doing overall good business and also have a good culture.
MCB provide different type of products and account to the customer.
MCB’s most of branches have online system and ATM machines which is good for the customer.
MCB has also the largest branch setup all over the Pakistan.
Net profit of the organization is decreases and it is need to be improve for the portability.
Also the Debt ratio of the organization is decreasing over the time so it is good sign for the organization.
Return on assets of the organization is very good so the bank is utilize there sources very well and gain profit.
So there is also some week point of the organization as there is some strict rule regarding the account opening so customer face some difficulty.
Finely the organization doing a very good business.
RecommendationThe MCB bank (Ltd) doing good gob over the years that way the deposit of the organization increase and the profitability also increase. The recommendation for the improvement is as follow
training of the employees according to the new technology and also hire the young talent and fresh blood in the organization
Make all the banks online and minimum charges of the usage of ATM cars and also make the mobile transaction free of cost.
Bank also take the step to increase in profit.
There is need to improve the security of the organization as improve security cameras and other devices for safety.
Also make the documentation awareness
Investment in assets should be appropriate.
Return on assets is improving over the year and make sure this is continued.
