MCB First Quarter Result 2012

7/31/2019 MCB First Quarter Result 2012

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To be the leading financial services provider, partnering with our customers for a more prosperous and secure future

Our Vision

We are a team of committed professionals, providing innovativeand efficient financial solutions to create and nurture long-term

relationships with our customers. In doing so, we ensurethat our shareholders can invest with confidence in us

Our Mission

The standards and principles which determine our behavior and how we interact with our customers and each other

Our Values

MCB



MCMCB Bank Limited

CORPORATE PROFILE

Mian Mohammad Mansha Chairman

S.M. Muneer Vice Chairman

Tariq Rafi Director

Shahzad Saleem Director

Sarmad Amin Director

Director

Director

Director

Director

Director

Director

Director

M.U.A. Usmani

Abdul Farid Bin Alias

President / CEO

Board of Directors:

Mian Raza Mansha

Aftab Ahmad Khan

Manzar Mushtaq

Dato’ Seri Ismail Shahudin

Mian Umer Mansha

Member

Member Member

Tariq Rafi Chairman

Audit Committee:

Aftab Ahmad Khan

Dato’ Seri Ismail Shahudin

Ahmad Alman Aslam

Ahmad Alman Aslam

Company Secretary: Abdus S. Sami

Auditors: M/s. A.F. Fergusons & Co.

Chartered Accountants

Legal Advisors: M/s.

Advocates & Legal Consultants

Khalid Anwer & Co.

Chief Financial Officer: Salman Zafar Siddiqi

Registrar's and Share

Registration Office:

M/s. THK Associates (Pvt.) Ltd

State Life Building No. 3

Dr. Ziauddin Ahmed Road

Karachi, Pakistan

Principal Office: MCB 15 Main Gulberg,

Lahore, Pakistan.

Registered Office: MCB Building F-6/G-6,

Jinnah Avenue, Islamabad,

Pakistan.



April, 24, 2012

MCMCB Bank Limited

Ratings

Economy Review

Future Outlook

Acknowledgement

PACRA maintained the long term credit rating of AA+ [double A plus] and short term credit rating A1+ [A one plus] of the Bank, through its notification in June 2011 (2010: Long term: AA+ [doublplus] and Short term: A1+ [A one plus]).

The macroeconomic platform of the economy is in much need of prudent corrections aninstigation of enforced measures to curb the impaired controls on inflationary pressures. Tprevalent political unrest, trade gaps, deteriorating reserves and international pressure commodity prices are reaping its adversities at a much higher pace. In the banking sectoremarkable results have been witnessed in a continuing trend despite economic disturbanceHowever, the modes and quality of financing is a major concern vis-à-vis the invisible demandthe private sector and limited growth opportunities in the area. Growing concentration levelsgovernment securities at banking industry level has raised concerns internationally and is likelyimpact ratings of financial institutions. However, to spur private sector credit, concrete remedactions are required with stable discount rate being the only factor considered so far.

Moving forward, unless the adversities are reversed there remains little room for foreiinvestments and injections in the economy. Main industries have already suffered the loss on pof power shortages and lack of government support. Tax evasion issues, rising deficit, impactnegative parity on exchanges and debt repayments is putting the economy under further stra Although equity market has per formed exceptionally well in the first quarter of 2012, necessameasures should be adopted to repose international confidence going forward.

MCB Bank Limited is determined in growth and creating opportunities to strengthen itself furthermeet the fore coming challenges. The Bank's focus shall be in product and services innovatiofurther improvements in quality of services on offer, improved use of technology, strengtheninginternal policy and control frameworks and adding value in the economy through its channel businesses.

In the end the Board would like to greet and thank all shareholders and customers for their trust, ostaff for their continuous hard work and dedication, and the Government and the State Bank Pakistan for their patronage and support.

MCBMCB Bank Limited

DIRECTORS' REPORT - MARCH, 2012

3 First Quarterly Report, 2012

On behalf of Directors

First Quarterly Report, 2012

I am pleased to place before you, on behalf of the Board of Directors, the quarterly financial statements of your Bank for the period ended March 31, 2012.

Performance Review

The Bank registered remarkable performance in the first quarter as profit before and after taxincreased to Rs. 8.656 billion and Rs. 5.644 billion respectively, increasing by 10% and 12% over the corresponding quarter last year. Net markup income of the Bank decreased by 2% over March2011 whereas non-markup income increased by 20% to Rs. 2.413 billion. On the operatingexpenses side, gross administrative expenses (excluding the impact of pension fund reversal)increased by a controlled growth of 11% over March 2011, whereas provisions significantlyreduced by 94% to Rs. 75 million.

The asset base of the Bank grew to Rs. 666.644 billion from Rs. 653.233 billion as at year end 2011. Advances (gross) of the Bank registered a growth of 2% over December 31, 2011, increasing to Rs.252.787 billion. The classified portfolio of the Bank decreased by 1% owing to effective riskmanagement framework adopted by the Bank, improving the quality of advances with a lower infection ratio of 10.38% from 10.75% in December 31, 2011. The investment portfolio increasedby 3% over December 2011 to Rs. 327.630 billion. The deposit base of the Bank went up by 4%,

with 3% and 8% increase r eported in current and saving deposits respectively, improving the CASApercentage to 82% from 81% as of December 31, 2011.

Earnings per share (EPS) for the quarter was reported at Rs. 6.14 compared to Rs. 5.46 for thecorresponding quarter last year. Return on assets improved to 3.42% (2011: 3.18%) whereasreturn on equity improved to 28.09% (2011: 26.23%).

ChairmanMian Mohammad Mansha

Financial Highlights

Transfer from Surplus on Revaluation of Fixed Assets (net of tax)

Profit Available for Appropriation

Appropriations:

Statutory ReserveFinal Cash Dividend – December 2011

Issue of Bonus Shares – December 2011

Total Appropriations

Un-appropriated Profit Carried Forward

Profit Before Taxation

Un-appropriated Profit Brought Forward

Profit After Taxation

Taxation

8,656

9

28,375

34,019

564

2,509

836

3,909

30,110

Rs. in Millions

28,366

5,644

(3,012)



Unconsolidated Condensed Interim Statement of Financial Position (Un-audited)As at March 31, 2012

MCBMCB Bank Limited MCMCB Bank Limited

Unconsolidated Condensed Interim Profit and Loss Account (Un-audited)

5 First Quarterly Report, 2012 First Quarterly Report, 2012

Unaudited Audited

Note March 31, December 31,

2012 2011

Assets

Cash and balances with treasury banks 46,915,513

53,122,522

Balances with other banks 2,451,944

2,281,263

Lendings to financial institutions 7 2,819,768

955,087

Investments - net 8 327,630,294

316,651,613

Advances - net 9 230,456,782

225,801,259

Operating fixed assets 22,368,978

22,007,903

Deferred tax assets - net -

-

Other assets - net 34,000,787

32,413,576

666,644,066

653,233,223

Liabilities

Bills payable 8,404,870

9,466,818

Borrowings 10 28,544,617

39,100,627

Deposits and other accounts 11 512,067,061 491,188,710 Sub-ordinated loan - - Liabilities against assets subject to finance lease -

-

Deferred tax liabilities - net 12 6,538,486

6,294,886

Other liabilities 18,658,258

18,379,700

574,213,292

564,430,741

Net assets 92,430,774

88,802,482

Represented by:

Share capital 9,198,601

8,362,365

Reserves 42,505,941

42,186,467

Un-appropriated profit 30,109,900

28,366,171

81,814,442

78,915,003

Surplus on revaluation of assets - net of tax 10,616,332

9,887,479

92,430,774

88,802,482

Contingencies and commitments 13

---------- (Rupees in '000) ----------

The annexed notes 1 to 21 form an integral part of these unconsolidatedcondensed interim financial statements.

Note

Mark-up / return / interest earned 17,545,206 15,960,

Mark-up / return / interest expensed 6,846,822 5,036,8

Net mark-up / interest income 10,698,384 10,923,

Provision against loans and advances - net 74,532 1,002,3

Provision for diminution in the value of investments - net 591 187,1

Bad debts written off directly 120 7,3

75,243 1,196,8

Net mark-up / interest income after provisions 10,623,141 9,726,2

Non mark-up / interest income

Fee, commission and brokerage income 1,462,470 1,182,2

Dividend income 505,117 188,5

Income from dealing in foreign currencies 255,268 213,9

Gain on sale of securities - net 55,436 278,4

Unrealized loss on revaluation of investments classified as held for trading (1,486) -

Other income 136,694 144,7

Total non mark-up / interest income 2,413,499 2,008,0

13,036,640 11,734,

Non-mark-up / interest expenses

Administrative expenses 4,123,496 3,668,9

Other provisions / (reversals) 15,775 (13,7

Other charges 241,136 242,7

Total non mark-up/interest expenses 4,380,407 3,897,9

8,656,233 7,836,3

Extra ordinary / unusual item - -

Profit before taxation 8,656,233

7,836,

Taxation - current period 2,769,475 2,705,6

- prior years - -

- deferred 242,617 107,0

3,012,092 2,812,7

Profit after taxation 5,644,141 5,023,6

Earnings per share - basic and diluted - Rupees 14 6.14 5.4

The annexed notes 1 to 21 f orm an integral part of these unconsolidated condensed interim financial statements.

Quarter end

March 31

2011

Quarter ended

March 31,

2012

---------- (Rupees in '000) ------

For the three months period ended March 31, 2012

Sarmad Amin

Director

S.M. Muneer

President / CEOM.U.A. Usmani Mian Umer Mansha Sarmad Amin

Director

S.M. Muneer

President / CEOM.U.A. Usmani Mian Umer Mansha



Unconsolidated Condensed Interim Cash Flow Statement (Un-audited)For the three months period ended March 31, 2012

MCMCB Bank LimitedMCBMCB Bank Limited

Unconsolidated Condensed Interim Statement of Comprehensive Income (Un-audited)For the three months period ended March 31, 2012


Profit after tax for the period 5,644,141

5,023,617

Other comprehensive income

Effect of translation of net investment in foreign branches (244,940) 4,773

Comprehensive income transferred to equity 5,399,201 5,028,390

Components of comprehensive income not reflected in equity

Net change in fair value of available for sale securities 738,786 34,146

Deferred tax (985) (80,094)

737,801 (45,948)

Total comprehensive income for the period 6,137,002 4,982,442

The annexed notes 1 to 21 form an integral part of these unconsolidated condensed interim financial statements.

Quarter ended

March 31,

2012

Quarter ended

March 31,

2011

March 31, March 31,2012 2011

Cash flows from operating activities

Profit before taxation 8,656,233 7,836,37Less: Dividend income (505,117) (188,51

8,151,116 7,647,85Adjustments for non-cash charges

Depreciation 312,693 265,91

Amortization 62,391 47,02Provision against loans and advances - net 74,532 1,002,30Provision for diminution in the value of investments - net 591 187,17Other provisions / (reversals) 15,775 (13,76Bad debts written off directly 120 7,39Unrealized loss on revaluation of investments classified as held for trading 1,486 -Gain on disposal of fixed assets (4,298) (3,79

463,290 1,492,25

8,614,406 9,140,1(Increase) / decrease in operating assets

Lendings to financial institutions (1,864,681) 3,376,78

Net investment in held for trading securities (5,198,447) -

Advances - net (4,730,175) (5,514,46

Other assets - net 1,522,562 (233,58(10,270,741) (2,371,26

Increase / (decrease) in operating liabilities

Bills payable (1,061,948) (638,93

Borrowings (10,556,010) 3,985,76

Deposits and other accounts 20,878,351 30,929,0

Other liabilities (1,895,995) (2,042,507,364,398 32,233,3

5,708,063 39,002,2

Income tax paid (5,657,112) (3,953,96

Net cash flows from operating activities 50,951 35,048,2

Cash flows from investing activities

Net investments in available-for-sale securities (6,631,753) (37,400,10

Net investments in held-to-maturity securities 1,588,228 118,59Investment in associated undertaking - (52,52

Dividend income received 267,203 117,50

Investment in operating fixed assets - net of disposals (731,861) (765,52

Net cash flows from investing activities (5,508,183) (37,982,04

Cash flows from financing activities

Dividend paid (334,156) (258,57

Net cash flows from financing activities (334,156) (258,57

Exchange difference on translation of net investment in f oreign branches (244,940)

4,77

---------- (Rupees in '000) ------

Increase in cash and cash equivalents (6,036,328) (3,187,57

Cash and cash equivalents at January 1 55,403,785 46,885,7

Cash and cash equivalents at March 31 49,367,457 43,698,1

The annexed notes 1 to 21 f orm an integral part of these unconsolidated condensed interim financial statements.

Sarmad Amin

Director

S.M. Muneer

President / CEOM.U.A. Usmani Mian Umer Mansha Sarmad Amin

Director

S.M. Muneer


---------- (Rupees in '000) ----------



MCBMCB Bank Limited

Unconsolidated Condensed Interim Statement of Changes in Equity (Un-audited)For the three months period ended March 31, 2012

MCMCB Bank Limited

Notes to the Unconsolidated Condensed Interim Financial Statements (Un-auditeFor the three months period ended March 31, 2012

9

First Quarterly Report, 2012 First Quarterly Report, 2012

Balance as at December 31, 2010 7,602,150

-

9,702,528

345,979

11,514,399

18,600,000

21,414,955

69,180,011

Change in equity for three months ended March 31, 2011

Transferred from surplus on revaluation of fixed

assets to unappropriated profit - net of tax -

-

-

-

-

-

8,947

8,947

Exchange differences on translation of net

investment in foreign branches -

-

-

4,773

-

-

-

4,773

Profit after taxation for three months period

ended March 31, 2011 -

-

-

-

-

-

5,023,617

5,023,617

Tot al co mp re h en s iv e in co me fo r t he pe rio d e n de d M ar ch 31 , 2 01 1 -

-

-

4,773

-

-

5,023,617

5,028,390

Transferred to statutory reserve -

-

-

-

502,362

-

(502,362)

-

Transfer to reserve for issue of bonus shares -

760,215

-

-

-

-

(760,215)

-

Final cash dividend - December 31, 2010 -

-

-

-

-

-

(2,280,645)

(2,280,645)

Balance as at March 31, 2011 7,602,150

760,215

9,702,528

350,752

12,016,761

18,600,000

22,904,297

71,936,703

Change in equity for nine months ended December 31, 2011



-

-

-

-

-

26,841

26,841



-

-

76,297

-

-

-

76,297

Profit after taxation for nine months period

ended December 31, 2011 -

-

-

-

-

-

14,401,289

14,401,289

Total comprehensive income for nine months ended December 31, 2011 -

-

-

76,297

-

-

14,401,289

14,477,586Transferred to statutory reserve -

-

-

-

1,440,129

-

(1,440,129)

-

Issue of bonus shares - December 31, 2010 760,215

(760,215)

-

-

-

-

-

-

Interim cash dividend - March 31, 2011 -

-

-

-

-

-

(2,508,709)

(2,508,709)

Interim cash dividend - June 30, 2011 -

-

-

-

-

-

(2,508,709)

(2,508,709)

Interim cash dividend - September 30, 2011 -

-

-

-

-

-

(2,508,709)

(2,508,709)

Balance as at December 31, 2011 8,362,365

-

9,702,528

427,049

13,456,890

18,600,000

28,366,171

78,915,003

Change in equity for three months ended March 31, 2012



-

-

-

-

-

8,947

8,947



-

-

(244,940)

-

-

-

(244,940)

Profit after taxation for three months period


-

-

-

-

-

5,644,141

5,644,141

Tot al co mp re h en s iv e in co me fo r t he pe rio d e n de d M ar ch 31 , 2 01 2 -

-

-

(244,940)

-

-

5,644,141

5,399,201

Transferred to statutory reserve -

-

-

-

564,414

-

(564,414)

-

Transfer to reserve for issue of bonus shares -

836,236

-

-

-

-

(836,236)

-

Issue of bonus shares - December 31, 2011 836,236 (836,236) - - - - - -

Final cash dividend - December 31, 2011 - - - - - - (2,508,709) (2,508,709)

Balance as at March 31, 2012 9,198,601 - 9,702,528 182,109 14,021,304 18,600,000 30,109,900 81,814,442

The annexed notes 1 to 21 form an integral part of these unconsolidated condensed interim financial statements.

Reserve for

issue of bonus

shares

Revenue Reserves

---------------------------------------------------------- (Rupees in'000) ----------------------------------------------------------

Share

premium

Statutory

reserve

TotalShare capital

Capital Reserves

General

reserve

Exchange

translation

reserve

Unappropriated

profit

1 STATUS AND NATURE OF BUSINESS

2 BASIS OF PRESENTATION

2.1

2.2

3 STATEMENT OF COMPLIANCE

3.1

3.2

3.3

4 BASIS OF MEASUREMENT

4.1

4.2

5 SIGNIFICANT ACCOUNTING POLICIES AND RISK MANAGEMENT

5.1

5.2

MCBBank Limited('the Bank') is a bankingcompanyincorporatedin Pakistan and is engaged in commercialbankingand r

services. The Bank'sordinary sharesare listed on all thestock exchangesin Pakistan whereas its Global Depositary Re

(GDRs)(representing twoordinary equity shares)are traded on the InternationalOrder Book (IOB) system of the London

Exchange.TheBank'sregisteredofficeand principaloffice aresituated at MCBBuilding,Jinnah Avenue,Islamabadand MC

Main,Gulberg,Lahore,respectively.The Bankoperates1,165branchesincluding22Islamicbanking branches(December31,

1,165 branchesincluding22 Islamicbankingbranches)within Pakistanand 8(December 31,2011:8) branchesoutside theco

(including the Karachi Export Processing Zone Branch).

Inaccordancewiththe directivesof theFederal Governmentregardingthe shiftingof thebanking systemto Islamicmodes,the

Bank of Pakistan has issued various circulars fromtime to time. Permissibleforms of trade-related modes of financing in

purchaseof goodsby banksfrom their customersand immediateresale to themat appropriatemark-up in priceon deferredpay

basis. The purchases and sales arising under these arrangements are not reflected in these unconsolidated condensed i

financial statementsas such butare restricted to theamount of facilityactuallyutilized andthe appropriate portion of m

thereon.

Thefinancial resultsof theIslamicbankingbrancheshave been consolidatedin these unconsolidatedcondensed interimfin

statementsfor reportingpurposes,aftereliminatingmaterial intra branch transactions/ balances.Keyfinancialfiguresof theI

banking branches are disclosed in note 18 to these unconsolidated condensed interim financial statements.

Theseunconsolidatedcondensedinterimfinancialstatementshavebeenpreparedin accordancewithapproved accounting sta

as applicable in Pakistan. Approved Accounting Standardscomprise of such InternationalFinancial Reporting Standards(

issuedby theInternationalAccountingStandardsBoard(IASB)asare notifiedunderthe CompaniesOrdinance,1984,provisio

anddirectivesissuedunder theBankingCompaniesOrdinance,1962,the CompaniesOrdinance, 1984,and thedirectivesissu

SBP. In case requirements differ, the provisions of and directives issued under the Banking Companies Ordinance, 196

Companies Ordinance, 1984, and the directives issued by SBP shall prevail.

The State Bankof Pakistanhas deferred the applicability of InternationalAccounting Standard (IAS) 39,'Financial Instrum

Recognition and Measurement' and International Accounting Standard (IAS) 40, 'Investment Property' for Banking Comp

through BSDCircular No.10 dated August 26,2002.The Securities and ExchangeCommission of Pakistan (SECP) hasdef

applicability of IFRS-7"FinancialInstruments:Disclosures"on banksthrough S.R.O411(1)/2008 datedApril 28,2008. Accord

therequirementsof these standardshave notbeen considered inthe preparation of theseunconsolidated condensedinterim fin

statements.However,investmentshavebeen classifiedand valued inaccordance withtherequirementsprescribedby theStat

of Pakistan through various circulars.

Thedisclosuresmadein theseunconsolidatedcondensedinterimfinancialstatementshave,howeverbeen limitedbasedon the

prescribedby the State Bank of Pakistan vide BSD Circular No. 2 dated May 12, 2004 and InternationalAccounting Standa

"Interim Financial Reporting". They do not include all of the disclosures required for annual financial statements and

unconsolidatedcondensedinterimfinancialstatementsshouldbe readinconjunctionwiththe financialstatementsof theBank

year ended December 31, 2011.

These unconsolidated condensed interim financial statements are presented in Pak Rupees, which is the Bank'sfunction

presentation currency.

Thefinancial riskmanagementobjectives and policiesare consistent withthosedisclosed in theannual financialstatements

Bank for the year ended December 31, 2011.

These unconsolidatedcondensed interimfinancial statements havebeen prepared underthe historical costconvention exce

certainfixedassetsarestatedat revaluedamounts,certaininvestments,commitmentsin respectof certainforward foreignexc

contracts and derivative financial instruments have been marked to market and are carried at fair value.

Theaccounting polices adopted in thepreparationof these unconsolidatedcondensed interim financialstatementsare thesa

those applied in the preparation of the annual financial statements of the Bank for the year ended December 31, 2011.

Sarmad Amin

Director

S.M. Muneer




MCBMCB Bank Limited

Notes to the Unconsolidated Condensed Interim Financial Statements (Un-audited)For the three months period ended March 31, 2012

MCMCB Bank Limited



Surplus on revaluation of available for sale securities - net

Investments at revalued amounts - net of provisions

8.2 Investments include Pakistan Investment Bonds amounting to Rs. 232.600 million (December 31, 2011: Rs. 232.600 million)

earmarked by theState Bank of Pakistan and National Bank of Pakistan against TT / DD discounting facilities and demand note

facilities sanctioned to the Bank. In addition, Pakistan Investment Bonds amounting to Rs. 5 million (December 31, 2011: Rs. 5 million)

have been pledged with the Controller of Military Accounts on the account of Regimental Fund Account.

472,254

291,848,744

13,483

24,802,869

485,737 316,651,613

6

7. LENDINGS TO FINANCIAL INSTITUTIONS March 31, December 31,

2012 2011

-

-

2,819,768 955,087

2,819,768 955,087

8 IN VES TM EN TS - NE T

8.1 Investments by types

Held-for-trading securities 5,198,447

-

5,198,447

Available-for-sale securities 8.2 301,670,391

13,548,342

315,218,733

Held-to-maturity securities 8.2 7,304,613

62,087

7,366,700

314,173,451

13,610,429

327,783,880

Associates 8.3 1,059,421

-

1,059,421

Subsidiaries 482,208

-

482,208

1,541,629 - 1,541,629

Investments at cost 315,715,080 13,610,429 329,325,509

Less: Provision for diminution in the value of investments(2,918,252)

-

(2,918,252)

Investments (net of provisions) 312,796,828

13,610,429

326,407,257Surplus / (deficit) on revaluation of available for sale securities - net 1,231,109

(6,586)

1,224,523Deficit on revaluation of held-for-trading securities - net (1,486)

-

(1,486)

Investments at revalued amounts - net of provisions 314,026,451

13,603,843

327,630,294

Held-for-trading securities -

-

-


24,306,386

308,996,384

Held-to-maturity securities 8.2 8,471,928

483,000

8,954,928

293,161,9 26 24,789,386 317,951,312

Associates 8.3 1,059,421 - 1,059,421

Subsidiaries 482,208 - 482,208

1,541,629 - 1,541,629

Investments at cost 294,703,5 55 24,789,386 3 19,492,941

Less: Provision for diminution in the value of investments (3,327,065) - (3,327,065)

Investments (net of provisions) 291,376,4 90 24,789,386 316,165,876

Given as

collateral

Held by

bank

Given as

collateral

Call money lendings

SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS

TotalHeld by

bank

Thebasisfor significant accountingestimatesand judgmentsadopted in thepreparationof theseunconsolidatedcondensed interim

financialstatementsarethesameasthoseappliedin thepreparationof theannualfinancialstatementsof theBankfor theyearended

December 31, 2011.

Repurchase agreement lendings

---------- (Rupees in '000) ----------

March 31, 2012

December 31, 2011

Total

8.3

9 A DVAN CES - NETMarch 31, December 31,

2012 2011

Loans, cash credits, running finances, etc

- In Pakistan 229,558,248

223,963,444

- Outside Pakistan 10,686,204

10,959,873

240,244,452

234,923,317 Net Investment in finance lease

- In Pakistan 1,214,765

1,226,014

- Outside Pakistan 220,928

151,463

1,435,693

1,377,477Bills discounted and purchased (excluding treasury bills)

- Payable in Pakistan 861,262

722,522

- Payable outside Pakistan 10,245,156

11,111,385

11,106,418

11,833,907

Advances - gross 252,786,563

248,134,701

Less: Provision against loans and advances

- Specific provision 9.1 (21,868,395)

- General provision (252,787)

- General provision against consumer loans (188,441)

- General Provision for potential lease losses (in Srilanka operations) (20,158)

(22,329,781)

(21,869,401

(248,135

(198,340

(17,566

(22,333,442

Advances - net of provision 230,456,782 225,801,259

9.1

Other Assets Especially

Mentioned (OAEM) 9.1.1 10,605

-

10,605

-

-

Substandard 2,007,885

-

2,007,885

439,221

439,221

Doubtful 358,140

3,324

361,464

178,247

178,247

Loss 19,600,150

4,290,188

23,890,338

21,250,927

21,250,927

21,976,780

4,293,512

26,270,292

21,868,395

21,868,395

Other Assets Especially

Mentioned (OAEM) 9.1.1 - - - - -

Substandard 2,036,968 7,857 2,044,825 461,374 461,37

Doubtful 292,466 - 292,466 115,289 115,28

Specific

Provision

HeldDomestic

------------------------------------- Rupees in '000 ------------------------------------

Classified Advances

Category of Classification

Domestic

Total

Overseas

Investmentof theBankin AdamjeeInsuranceCompanyLimited iscarriedat costamountingto Rs.943.600million (December 3

2011:Rs. 943.600 million)as at March 31, 2012in accordance withthe treatmentspecifiedin InternationalAccountingStandar

(IAS) 28 "Accounting for Investments in Associates". The market value of the investment in Adamjee Insurance Company Limite

as at March 31, 2012 amounted to Rs. 2,039.867 million (December 31, 2011: Rs. 1,675.927 million).

Category of Classification

Specific

Provision

Required

March 31, 2012

---------- (Rupees in '000) ---------

December 31, 2011

------------------------------------- Rupees in '000 ------------------------------------

Specific

Provision

Held

Classified Advances

Total

Specific

Provision

Required

Overseas

Advances includeRs. 26,270.292million(December 31,2011:Rs. 26,664.873million)whichhave beenplacedundernon-performi

status as detailed below:

Loss 20,061,976 4,265,606 24,327,582 21,292,738 21,292,73

22,391,410 4,273,463 26,664,873 21,869,401 21,869,40

9.1.1 This represents non-performingportfolioof agriculturalfinancing classifiedas OAEM as per the requirements of the Prudenti

Regulation for Agricultural Financing issued by the SBP.

---------- (Rupees in '000) ----------

---------- (Rupees in '000) ----------



MCBMCB Bank Limited


MCMCB Bank Limited



10 BORR OW INGS March 31, December 31,

2012 2011

In Pakistan 26,737,202 37,397,843

Outside Pakistan 1,807,415 1,702,784

28,544,617 39,100,627

10.1 Details of borrowings (secured / unsecured)

Secured

Borrowings from State Bank of Pakistan

Export refinance scheme 9,926,134

9,903,657

Long term financing facility 1,511,310

2,026,175

Long term financing - export oriented projects scheme 1,310,028

949,375

Financing Facility for Storage of Agricultural Produce 460,799

219,932

Scheme for Revival of SMEs & Agricultural Activities in Flood Affected Areas -

450

13,208,271

13,099,589

Borrowings from other financial institutions 13,362

293,113

Repurchase agreement borrowings 13,591,017

24,781,254

13,604,379

25,074,367

26,812,650

38,173,956Unsecured

Call borrowings 991,480

816,139

Overdrawn nostro accounts 740,487

110,532

1,731,967

926,671

28,544,617

39,100,627

11 DEPOSITS AND OTHER ACCOUNTSCustomers

Fixed deposits 90,839,753

91,501,846

Savings deposits 244,609,624

225,920,953

Current accounts 166,504,701

161,680,596

Margin accounts 3,067,361

3,511,830

505,021,439

482,615,225

Financial institutions

Remunerative deposits 4,911,666

6,319,827

Non-remunerative deposits 2,133,956

2,253,658

7,045,622

8,573,485

512,067,061

491,188,710

12 DEFERRED TAX LIABILITY / (ASSET) - NET

The details of the tax effect of taxable and deductible temporary differences are as follows:

Taxable temporary differences on:

Surplus on revaluation of operating fixed assets 778,160

782,977

Accelerated tax depreciation 972,090 1,033,028

Receivable from pension fund 5,261,164 5,156,165Surplus on revaluation of securities 50,378 49,393

7,061,792 7,021,563Deductible temporary differences on:

Provision for bad debts (228,171)

Provision for contributory benevolent scheme (1,080)

Provision for post retirement medical benefits (294,055)

---------- (Rupees in '000) ----------

(523,306)

6,538,486

(414,114)

(5,655)

(306,908)

(726,677)

6,294,886

12.1

March 31, December 3

2012 2011

13 CONTINGENCIES AND COMMITMENTS13.1 Direct credit substitutes

Contingent liabilities in respect of guarantees given favouring

- Government 4,369,412

2,634,

- Banks and financial institutions 2,744,964

2,519,

- Others 5,022,186

4,885,

12,136,562

10,03913.2 Transaction-related contingent liabilities

Guarantees in favour of:


2,761,

- Others 4,982,788

4,217,

Suppliers credit / payee guarantee 2,457,093

2,373,

8,441,656

9,351,

13.3 Trade-related contingent liabilities 63,830,600

77,075

13.4 Other contingencies

Claims against the Bank not acknowledged as debts 818,363

844,

13.5 Commitments to extend credit

13.6 Commitments in respect of forward foreign exchange contracts

Purchase 26,888,166

32,395

Sale 26,658,002

35,030

13.7 Commitments for the acquisition of fixed assets 191,335

276,

13.8 Taxation

March 31, March 31

2012 2011

14 BASIC AND DILUTED EARNINGS PER SHARE - AFTER TAX

Profit after taxation 5,644,141 5,023,

Number of shares

Weighted average number of shares outstanding during the period 919,860,123 919,860

Rupees

Basic and diluted Earnings per share - after tax 6.14 5

15 CREDIT RATING

---------- (Rupees in '000) ------

TheFinanceAct, 2009and 2010have madesignificant amendmentsin theSeventh Scheduleto IncomeTaxOrdinance,2001.

deductionfor provisionfor doubtfuland losscategoriesof advancesandoff balancesheetitems isallowableupto a maximumof

of total advances whereas provisions for advances andoff-balancesheet items for consumer and small and medium enterpr

(SMEs)("as defined under theSBP'sPrudential Regulations") is nowallowed at 5% of total consumer andSME portfolio.

amountof baddebtsclassifiedas substandardunderPrudentialRegulationsissuedby StateBankof Pakistanwouldnot beallowean expense.

PACRA throughitsnotificationinJune 2011,has assignedlongtermcreditratingof AA+ [doubleA plus]andshort-termcreditra

of A1+ [A one plus] to the Bank.

---- (Rupees in '000) ----

TheBankmakescommitmentstoextend creditin thenormalcourse of itsbusinessbut these being revocablecommitmentsdo

attract any significant penalty or expense if the facility is unilaterally withdrawn.

Three months ended

The income tax assessments of the Bankhave been framed uptoand including the Tax Year 2011. For theAssessm

Year 1988-89 through Tax Year 2011, the department has amended the assessments on certain issues against the Ba

The Bank has filed appealswhich are pending at various appellateforums. in addition,certain decision made in favou

the Bank are being contested by the department at higher forums. No provision has been made in the finan

statements as themanagementandthe Bank's legalcounsel are of the viewthat theissues will be decidedin the Ba

favour as and when these are taken up by the Appellate Authorities.



MCBMCB Bank Limited


MCMCB Bank Limited

Notes to the Unconsolidated Condensed Interim Financial Statements (Un-auditedFor the three months period ended March 31, 2012


16 SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES

The segment analysis with respect to business activity is as follows:

Total income 28,479 10,357,788 3,655,716 5,916,722 19,958,705

Total expenses (5,935)

(1,773,834)

(8,542,758)

(979,945)

(11,302,472)

Income tax expense -

-

-

-

(3,012,092)

Net income 22,544

8,583,954

(4,887,042)

4,936,777

5,644,141

Segment assets - (Gross of NPLs Provisions) -

358,035,312

120,268,037

201,331,006

679,634,355

Ad va nc e ta xa tio n (p ayme nt le ss pro visio n) -

-

-

-

8,878,106

Total assets -

358,035,312

120,268,037

201,331,006

688,512,461

Segment non performing loans -

-

8,061,887

18,208,405

26,270,292

Segment specific provision required -

-

6,711,023

15,157,372

21,868,395

Segment liabilities -

21,189,519

515,896,953

30,588,334

567,674,806

Deferred tax liabilities - net 6,538,486

Total liabilities - net -

21,189,519

515,896,953

30,588,334

574,213,292

Segment return on assets (ROA) (%) 11.57% 12.88% 12.71% -

Segment cost of fund (%) 11.37% 4.44% 6.11% -

Total income 3,858

7,478,375

3,470,816

7,015,007

17,968,056


(1,456,446)

(7,121,176)

(1,550,668)

(10,131,683)


-

-

-

(2,812,756)

Net income 465

6,021,929

(3,650,360)

5,464,339

5,023,617

S egme nt asse ts - (Gro ss of NP Ls pro visio n) -

274,667,774

112,698,621

233,524,193

620,890,588

Ad va nc e ta xa tio n (p ayme nt le ss pro visio n) -

-

-

-

3,782,057

Total assets -

274,667,774

112,698,621

233,524,193

624,672,645


-

6,700,062

18,193,854

24,893,916


-

5,376,326

14,599,279

19,975,605

Segment liabilities - 24,466,656 463,742,920 29,460,264 517,669,840

Deferred tax assets - - - - 5,121,195

Three months ended March 31, 2012


Total

---------------------------------------------(Rupees i n '000)-----------------------------------------

Corporate

Finance

Trading

and

Sales

Retail &

Consumer

Banking

Commercial

Banking

Total liabilities - net - 24,466,656 463,742,920 29,460,264 522,791,035

Segment return on assets (ROA) (%) - 10.89% 12.94% 12.82% -

Segment cost of fund (%) - 11.39% 3.96% 5.64% -

17 RELATED PARTYTRANSACTIONS

Deposits

Depositsat be ginning of the period / year 4,398,756

2,088,985

766,387 955,014 77,043 24,677,392

Depositsre ceived during theperiod / year 1,100,134

20,407,581

30,536,355 169,261,154 986,420 250,452,445 8

Depositsre paid during theperiod / year (1,064,312)

(18,097,810)

(30,733,501) (169,449,781) (1,019,609) (249,736,033) (8

Depositsat the end of the period / year 4,434,578

4,398,756

569,241 766,387

43,854

312,093

(312,884)

43,063 43,854

25,393,804

74,117,220

(73,141,611)

26,369,413 25,393,804

50,178

190,356

(178,102)

62,432

Advances (secured)

Balance atbeginning of the period / year -

-

- - 449,729 112,548 81,302 - 49,743

Loan granted during the period / year -

-

- - 3,580 337,759 67,815 81,302 1,796

Repayment duringthe period / year -

-

- - - (578) (54,072) - (4,895)

Balance atend of the period / year -

-

- - 453,309 449,729 95,045 81,302 46,644

Outstanding Balance of credit card 713

1,137

- - - - - - 866

Receivablefrom Pension Fund -

-

- - - - 15,031,898 14,731,898 -

Adamjee Insurance CompanyLimited

Insurance premium paid-net of refund - - 202,676 - - - - - -

Insurance claim settled - - 17,863 8,443 - - - - -

Rent Income received - - 405 1,638 - - - - -

Outstanding commitments and contingent liabilities - - 8,365 8,365 - - - - -

Commission income from bancassurance - - 89,554 38,144 - - - - -

Adamjee Life Assurance CompanyLimited

Insurance Premium Paid - - 25,262 26,342 - - - - -

Outstanding commitments and contingent liabilities - - 500 500 - - - - -

Euronet Pakistan Private Limited

ATMOutsourcing Revenue --

29,258 5,607 - - - - -Capitalinjection - - - 52,519 - - - - -

Trade payable - - 4,292 7,317 - - - - -

Training expenses reimbursed - - - 27 - - - - -

The Bank has related partyrelationship with itsassociates, subsidiaries, employee benefit plans and its keymanagement personnel(inc luding their associates) and companies with common directors.

The Bank enters intotransactions with related parties in the normalcourse of business. Contributions toand accruals in respect ofstaff retirement benefits and other benefit plans are made in accordancewith the actuarial

valuations /terms of the contribution plan. Remuneration tothe executives / officers is determined in accordance with the terms of their appointment.

Three months

ended

March 31,

2012

Three months

ended

March 31,

2012

Associates

Associates

Details of transactions with related parties and balances with them as atthe period-end were as follows:

Subsidiary companies Key management per

Three months

ended

March 31,

2012

Yea

end

Dec

201

Keymanagement per

Year

ended

Dec 31,

2011

----------------------------------------------------------(Rupees in '000) --------------------------------------------------------------

Subsidiarycompanies

Year

ended

Dec 31,

2011

Three months

ended

March 31,

2012

OtherRelatedParties

Year

ended

Dec 31,

2011

Three months

ended

March 31,

2012

March 31,

2012

Directors OtherRelatedParties

Directors

March 31 /

December 31,

2011

March 31 /

December 31,

2011

Year

ended

Dec 31,

2011

----------------------------------------------------------(Rupees in '000) --------------------------------------------------------------

March 31,

2012

March 31,

2012

March 31,

2012

March 31 /

December 31,

2011

March 31,

2012

March 31 /

December 31,

2011

March

Decem

201

Mayban International Trust (Labuan) Berhad

Forward foreign exchange contracts (Notional) - - - - - - - 1,913,753 -

Unrealized loss on forward foreign exchange contracts - - - - - - - 40,914 -

MNET Services (Private) Limited

Dividend received - - - - - 4,998 - - -

Outsourcingservice expenses - - - - 15,283 16,115 - - -

Payment system managed service revenue (PSM) - - - - - 6,449 - - -

Payable for trade debts - - - - 20,814 16,506 - - -

Receivable for other expenses - - - - - 3,490 - - -

"MCB Leasing" ClosedJoint Stock Company

Markup Receivable - - - - 2,960 4,265 - - -

MCB TradeServices Limited

Dividend received - - - - - 4,664 - - -

Arif HabibInvestments Limited

Dividend received - - - - 27,718 29,998 - - -

Markup payable - - - - 193 610 - - -

Commission Receivable - - - - 12,744 1,924 - - -

Commission on distribution of unitsand managementfee sharing

- - - - 10,391 15,762 - - -

MCB Employees Foundation

Serviceexpenses - - - - - - 4,594 4,378 -

Cash sorting expenses - - - - - - 8,966 10,889 -

StationeryExpenses - - - - - - 40,095 31,484 -

Advance receivable - - - - - - 20,000 20,000 -

Payable for stationeryexpenses - - - - - - 6,834 1,255 -

MCB Employees SecuritySystem

andServices (Private) Limited

Securityguard expenses - - - - - - 63,507 47,384 -

Remuneration and non-executivedirectors' fee 16,134 15,302 - - - - - - 46,828

Mark-up expense on deposits 89,899 21,785 20,410 16,535 1,056 723 995,318 1,058,302 1,059

Markup income on advances - - - - 4,739 1,264 2,346 - 888

Clearingexpenses paid toNIFT - - - - - - 29,268 30,065 -

Other miscellaneous expenses - - - - - - 3,195 3,924 -

Investment in Metro-Bank Pakistan Sovereign Fund-Perpetual - - - - - - 4,000,000 4,000,000 -

Dividend Income - - - - - - 216,893 - -

Contribution toprovident fund - - - - - - 43,941 39,703 -

Commission Received - - 919 - - - 13 - -

Gas charges - - - - - - 3,115 2,239 -

Rent Paid - - - - - - 53 42 -

The chairman has been provided with free use ofthe Bank maintained car.The ChiefExecutive and certain executives are provided with free use ofthe Bank's maintained cars and household equipment in accordance with the termsoftheir emp

Others



MCMCB Bank Limited


MCBMCB Bank Limited



18 ISLAMIC BANKING BUSINESS

March 31, December 31,

2012 2011

Assets

Cash and balances with treasury banks 278,465

334,398

Investments - net 2,818,271

2,938,706

Financing and receivables- Murabaha 4,490,409

4,094,212

- Ijara 95,899

96,146

- Islamic export refinance 1,189,248

1,420,784

Fixed Assets 996,394

1,008,864

Deferred tax assets 720

-

Other assets 3,059,821

3,330,885

12,929,227

13,223,995

Liabilities

Bills payable 108,607

45,297

Deposits and other accounts - - - Current accounts 813,666

1,022,119

- Saving accounts 1,578,387

1,636,924

- Term deposits 3,259,045

4,565,234

- Others 13,759

81,503

Borrowing from SBP 1,391,682

1,664,996

Due to head office 4,367,708

2,558,624

Deferred tax liability -

8,182

Other liabilities 372,270

449,518

11,905,124

12,032,397


1,191,598

Represented by:

Islamic Banking Fund 1,000,000

1,000,000

Other Reserves (124)

70

Unappropriated profit 25,564

176,334

1,025,440

1,176,404

Surplus / (deficit) on revaluation of assets - net of tax (1,337)

15,194

1,024,103

1,191,598

CHARITY FUND

Opening balance 782 1,763

Additions during the year

Received from customers on delayed payments 829 1,397

Profit on charity saving account 14 122

843 1,519

---------- (Rupees in '000) ----------

The Bank is operating 23 Islamic banking branches including 1 overseas branch (December 31, 2011: 23 branches including 1

overseas). The statement of financial position of the Bank's Islamic Banking Branches as at March 31, 2012 is as follows:

Payments / utilization during the year

Social Welfare - (1,500)

Health - (1,000)

Education - -

Relief and disaster recovery -

- (2,500)

Closing balance 1,625 782

Quarter ended Quarter ended

March 31,

2012

March 31,

2011

Income / return / profit earned 349,420

380,68

Income / return / profit expensed 278,248

266,91

Net Income / Profit 71,172

113,770

Provision against loans and advances - net (130)

9,29

Provision for diminution in the value of investments -

-

Bad debts written off directly -

-

(130)

9,29

Net profit / income after provisions 71,302

104,48

Other income

Fees, commission and brokerage income 8,904

13,723

Dividend income -

Income from dealing in foreign currencies 2,342

412

Other Income 30,406

5,46

Total other income 41,652

19,602

112,954

124,08

Other expenses

Administrative expenses 87,045 65,895

Other provisions / write offs -

-

Other charges (Penalty paid to SBP) 344

237

Total other expenses 87,389

66,132

Extra ordinary / unusual items -

-

Profit before taxation 25,565

57,950

Remuneration to Shariah Advisor / Board 486

420

1 9 GENERAL

- Figures have been rounded off to the nearest thousand of rupees unless otherwise stated.

-

20 NON-ADJUSTING EVENT

21 DATE OF AUTHORIZATION FOR ISSUE

Comparative information has been reclassified and rearranged in these unconsolidated condensed interim financial statements for

purpose of comparison.

Theprofitandlossaccountof theBank'sIslamicbankingbusinessfor thethree monthsperiod ended March 31, 2012 isa

follows:

---------- (Rupees in '000) ---------

TheBoardof Directorsin itsmeetingheldon April24,2012hasannouncedcashdividendinrespectof thethreemonthsperiodende

March 31,2012 of Rs.3.00per share (March 31,2011: Rs.3.00per share). These unconsolidated condensed interim financi

statements for the three months period ended March 31,2012 do not include the effect of these appropriations which will b

accounted for subsequent to the period end.

Theseunconsolidatedcondensedinterimfinancialstatementswereauthorizedfor issuebythe Board of Directorsof theBankin the

meeting held on April 24, 2012 .

Sarmad Amin

Director

S.M. Muneer


-



MCBMCB Bank Limited

19

(Consolidated Financial Statements of MCB Bank Limited and its Subsidiary Companies)

First Quarterly Report, 2012



MCBMCB Bank Limited & Subsidiary Companies

Consolidated Condensed Interim Profit and Loss Account (Un-audited)For the three months period ended March 31, 2012

MCMCB Bank Limited & Subsidiary Companies

21

Consolidated Condensed Interim Statement of Financial Position (Un-audited)As at March 31, 2012


Unaudited Audited

Note March 31, December 31,

2012 2011

Assets

Cash and balances with treasury banks 46,915,598

53,122,620

Balances with other banks 2,542,298

2,357,418

Lendings to financial institutions 7 2,819,768

955,087

Investments - net 8 330,522,492

319,005,983

Advances - net 9 230,442,850

225,794,738

Operating fixed assets 22,775,547

22,418,450

Deferred tax assets - net -

-


32,670,511

670,260,854

656,324,807

Liabilities

Bills payable 8,404,870

9,466,818

Borrowings 10 28,544,617

39,100,627

Deposits and other accounts 11 512,027,617 491,146,798

Sub-ordinated loan - - Liabilities against assets subject to finance lease - - Deferred tax liabilities - net 12 6,760,596

6,497,097

Other liabilities 18,731,596

18,459,162

574,469,296

564,670,502


91,654,305

Represented by:

Share capital 9,198,601

8,362,365

Reserves 42,732,393

42,412,588

Un-appropriated profit 32,107,021

30,259,449

84,038,015

81,034,402

Minority interest 486,006

492,497

84,524,021

81,526,899

Surplus on revaluation of assets - net of tax 11,267,537

10,127,406

95,791,558

91,654,305

Contingencies and commitments 13

---------- (Rupees in '000) ----------

The annexed notes 1 to 21 form an integral part of these consolidated condensed interim financial statements.

Note

Mark-up / return / interest earned 17,560,674 15,969,9

Mark-up / return / interest expensed 6,846,237 5,036,9

Net mark-up / interest income 10,714,437 10,932,9

Provision against loans and advances - net 74,532 1,002,3

Provision for diminution in the value of investments - net591 187,1

Bad debts written off directly 120 7,39

75,243 1,196,8

Net mark-up / interest income after provisions 10,639,194 9,736,0

Non mark-up / interest income

Fee, commission and brokerage income 1,463,841 1,182,9

Income earned as trustee to various funds 4,787 5,52

Dividend income 477,399 149,0

Income from dealing in foreign currencies 255,519 214,8

Gain on sale of securities - net 43,922 256,7

Unrealized gain on revaluation of investments classified as held for trading 23,473 32,9

Other income 240,102 203,8

Total non mark-up / interest income 2,509,043 2,045,9

13,148,237 11,782,0Non-mark-up / interest expenses

Administrative expenses 4,205,129 3,722,5

Other provisions / (reversals) 15,775 (13,76

Other charges 241,136 243,4

Total non mark-up/interest expenses 4,462,040 3,952,2

Share of profit of associates 130,309 139,4

Extra ordinary / unusual item - -

Profit before taxation 8,816,506

7,969,2

Taxation - current period 2,779,174 2,716,7

- prior years - -

- deferred 262,828 116,9

Share of tax of associates 6,880 22,9

3,048,882 2,856,7

Profit after taxation 5,767,624 5,112,5

(Profit) / Loss attributable to minority interest(19,709) 35

Profit attributable to ordinary share holders 5,747,915 5,112,890

Earnings per share - basic and diluted - Rupees 14 6.25 5.5


Quarter end

March 31

2011

Quarter ended

March 31,

2012

---------- (Rupees in '000) -------

Sarmad Amin

Director

S.M. Muneer

President / CEOM.U.A. Usmani Mian Umer ManshaSarmad Amin

Director

S.M. Muneer





Consolidated Condensed Interim Cash Flow Statement (Un-audited)For the three months period ended March 31, 2012


Consolidated Condensed Interim Statement of Comprehensive Income (Un-audited)For the three months period ended March 31, 2012


Profit after tax for the period 5,767,624 5,112,533

Other comprehensive income

Effect of translation of net investment in foreign branches and subsidiaries

- Equity shareholders of the Bank (244,609)

4,719

- Minority interest 17 8

(244,592) 4,727

Comprehensive income transferred to equity 5,523,032

5,117,260

Components of comprehensive income not reflected in equity

Net change in fair value of available for sale securities 738,786

34,146

Deferred tax (985)

(80,094)

737,801

(45,948)

Total comprehensive income for the period 6,260,833 5,071,312


Quarter ended

March 31,

2012

Quarter ended

March 31,

2011

March 31, March 31,

2012 2011

Cash flows from operating activities

Profit before taxation 8,816,506 7,969,24

Less: Dividend income & share of profit of associates (607,708) (288,504

8,208,798 7,680,74Adjustments for non-cash charges

Depreciation 312,693

265,91

Amortization 62,391

47,025

Provision against loans and advances - net 74,532

1,002,30

Provision for diminution in the value of investments - net 591

187,177

Other provisions / (reversals) 15,775

(13,763

Bad debts written off directly 120

7,394

Unrealized gain on revaluation of investments classified as held for trading (23,473)

(32,945

Gain on disposal of fixed assets (4,298)

(3,798

438,331

1,459,31

8,647,129

9,140,05(Increase) / decrease in operating assets

Lendings to financial institutions (1,864,681)

3,376,78

Net investment in held for trading securities (5,176,473)

21,693

Advances - net (4,722,764)

(5,511,27


(230,05

(10,235,634)

(2,342,85

Increase / (decrease) in ope rating liabilities

Bills payable (1,061,948) (638,93

Borrowings (10,556,010)

3,985,76

Deposits and other accounts 20,880,819

30,959,44

Other liabilities (1,902,119)

(2,037,80

7,360,742

32,268,47

5,772,237

39,065,67

Income tax paid (5,657,426)

(3,969,23

Net cash flows from operating activities 114,811

35,096,43

Cash flows from investing activities

Net investments in available-for-sale securities (6,631,753)

(37,400,10

Net investments in held-to-maturity securities 1,588,228

118,59

Investment in associated undertaking -

(52,52

Dividend income received 239,485

78,036

Investment in operating fixed assets - net of disposals (727,883)

(761,91

Net cash flows from investing activities (5,531,923)

(38,017,90

Cash flows from financing activities

Dividend paid (360,438)

(258,574

Net cash flows from financing activities (360,438) (258,574

Exchange difference on translation of net investment in foreign branches and subsidiaries (244,592) 4,727

Increase in cash and cash equivalents (6,022,142) (3,175,31

Cash and cash equivalents at January 1 55,480,038 46,958,78

Cash and cash equivalents at March 31 49,457,896 43,783,46


---------- (Rupees in '000) -------

Sarmad Amin

Director

S.M. Muneer

President / CEOM.U.A. Usmani Mian Umer ManshaSarmad Amin

Director

S.M. Muneer


---------- (Rupees in '000) ----------



Notes to the Consolidated Condensed Interim Financial Statements (Un-audited)For the three months period ended March 31, 2012

MCMCB Bank Limited & Subsidiary CompaniesMCBMCB Bank Limited & Subsidiary Companies

Consolidated Condensed Interim Statement of Changes in Equity (Un-audited)For the three months period ended March 31, 2012


Balance asat December 31, 2010 7,602,150 - 9,702,528 347,599 11,514,399 18,600,000 23,458,429 71,225,105 2,698 71,227,803

Change inequity for three months endedMarch 31, 2011

Profit after taxation for threemonths period


-

-

-

-

-

5,112,533

5,112,533

- 5,112,533

Profit attributableto minorityinterest -

-

-

-

-

-

357

357

(357) -

Profit after taxation for thethree monthsen ded March 31, 2011

a tt ri bu ta ble t oo rd in ar ys ha re ho ld er s of th e gr ou p -

-

-

-

-

-

5,112,890

5,112,890

( 35 7) 5 ,1 12 ,5 33

Exchange differenceson translation ofnet

investmentin foreign branchesand subsidiaries -

-

-

4,719

-

-

-

4,719

8 4,727

Total comprehensivein comefor thethreemon thsperiod ended

March 31, 2011 -

-

-

4,719

-

-

5,112,890

5,117,609

( 34 9) 5 ,1 17 ,2 60

Transferred from surpluson revaluation offixed

assets tounappropriated profit - net oftax -

-

-

-

-

-

9,071

9,071

- 9,071

Shareof dividend attributableto minorityshareholders -

-

-

-

-

-

-

(4) (4)

Transferred tostatutory reserve -

-

-

-

502,362

-

(502,362)

-

- -

Transfer toreserve for issueof bonus shares -

760,215

-

-

-

-

(760,215)

-

- -

Final cash dividend - December 2010 -

-

-

-

-

-

(2,280,645)

(2,280,645)

- (2,280,645)

Balance asat March31, 2011 7,602,150

760,215

9,702,528

352,318

12,016,761

18,600,000

25,037,168

74,071,140

2 ,3 45 7 4, 07 3 ,4 8 5

Profit after taxation for theyear ended

December 31, 2011 -

-

-

-

-

-

14,189,950

14,189,950

- 14,189 ,95 0

Profit attributable to minority interest -

-

-

-

-

-

(28,524)

(28,524)

28,524 -

Profitafter taxation for thenine monthsended December 31, 2011

a tt ri bu ta ble t oo rd in ar ys ha re ho ld er s of th e gr ou p - - - - - - 14,161,426 14,161,426 28,524 14,189,950


investmentin foreign branchesand subsidiaries - - - 78,942 - - - 78,942 134 79,076

Total comprehensivein comefor the ninemonth s

ended December 31, 2011 - - - 78,942 - - 14,161,426 14,240,368 28,658 14,269,026


assets tounappropriated profit - net oftax - - - - - - 27,111 27,111 128 27,239


-

-

-

1,440,129

-

(1,440,129)

-

- -

Issueofbonusshares- December 2010 760,215

(760,215)

-

-

-

-

-

-

- -

Adjustmentspertaining to additional issueof sharecapital to minority

interest on amalgamation ofMCBAssets Management Company

Limited with Arif Habib Investments Limited -

-

221,910

-

-

-

-

221,910

5 13 ,9 47 7 35 ,8 57

Shareof dividend attributableto minorityinterest -

-

-

-

-

-

-

-

( 52 ,5 81 ) ( 52 ,5 81 )

Interim cash dividend - March 2010 -

-

-

-

-

-

(2,508,709)

(2,508,709)

- (2,508,709)

Interim cash dividend - June2010 -

-

-

-

-

-

(2,508,709)

(2,508,709)

- (2,508,709)

Interim cash dividend - September 2010 -

-

-

-

-

-

(2,508,709)

(2,508,709)

- (2,508,709)

Balance asat December 31, 2011 8,362,365

-

9,924,438

431,260

13,456,890

18,600,000

30,259,449

81,034,402

492, 497 81,526,899

Profitafter taxation for thethree monthsperiod ended

March 31, 2012 -

-

-

-

-

-

5,767,624

5,767,624

- 5,767,624

Profit attributableto minorityinterest -

-

-

-

-

-

(19,709)

(19,709)

19,709 -

Profitafter taxation for thethree monthsperiod ended

March 31, 2012attributable toordinary shareholdersof thegroup -

-

-

-

-

-

5,747,915

5,747,915

1 9, 70 9 5 ,7 67 ,6 2 4


investmentin foreign branchesand subsidiaries -

-

-

(244,609)

-

-

-

(244,609)

1 7 ( 24 4, 59 2)

Total comprehensivein comefor thethree months period


-

-

(244,609)

-

-

5,747,915

5,503,306

1 9, 72 6 5 ,5 23 ,0 3 2


assets tounappropriated profit - net oftax -

-

-

-

-

-

9,016

9,016

65 9,081


-

-

-

564,414

-

(564,414)

-

- -

Transfer toreserve for issueof bonus shares - 836,236 - - - - (836,236) - - -

Issueofbonusshares- December 2011 836,236 (836,236) - - - - - - - -

Shareof dividend attributableto minorityinterest - - - - - - - - (26,282) ( 26,282)

Final cash dividend - December 2011 - - - - - - (2,508,709) (2,508,709) - (2,508,709)

Balance as at March31, 2012 9,198,601 - 9,924,438 186,651 14,021,304 18,600,000 32,107,021 84,038,015 486,006 84,524,021

Thean nexed notes1 to 21 form an integral part ofthese consolidated condensed interim financial statements.

---------------------------------------------------------- (Rupees in'000) ----------------------------------------------------------

Share

capital

Capital reserves Revenue Reserves

SubtotalMinority

InterestTotalReservefor issue

ofbonus sharesSharepremium

Exchange

translation

reserve

Statutory reserve GeneralreserveUnappropriated

profit

3 STATEMENT OF COMPLIANCE

3.1 These consolidatedcondensedinterimfinancialstatements havebeen preparedin accordancewith approvedaccountingstandard

applicablein Pakistan.ApprovedAccountingStandardscompriseof suchInternationalFinancialReportingStandards(IFRS)iss

by the International Accounting Standards Board (IASB) as are notified under the Companies Ordinance, 1984, provisions of

directivesissuedunder theBankingCompanies Ordinance,1962,the CompaniesOrdinance,1984,and thedirectives issuedby S

In caserequirementsdiffer,the provisionsof anddirectivesissued underthe Banking CompaniesOrdinance, 1962,the Compa

Ordinance, 1984, and the directives issued by SBP shall prevail.

1 STATUS AND NATURE OF BUSINESS

2 BASIS OF PRESENTATION

2.1

2.2

2.3

a)

b)

c)

The Group consists of:

Holding Company

- MCB Bank Limited

"Percentage holding of

MCB Bank Limited"Subsidiary Companies

- MCB Financial Services Limited 99.99%

- MNET Services (Private) Limited 99.95%

- MCB Trade Services Limited 100%- Arif Habib Investments Limited 51.329%

- "MCB Leasing" Closed' Joint Stock Company 95.00%

Theconsolidatedcondensedfinancialstatementsincludethefinancialstatementsof MCBBankLimitedandits subsidiarycompa

and associates.

Subsidiariesare all entities over which theGrouphas thepower to govern thefinancial andoperating policies accompanyin

shareholding of more than one half of the voting rights. Theexistenceand effect of potential voting rights that are curre

exercisableare consideredwhen assessingwhether the Groupcontrolsanother entity. Subsidiaries are fullyconsolidated from

date on which control is transferred to theGroup. They arede-consolidated from the date when control ceases. Theassets

liabilitiesof subsidiarycompanieshave beenconsolidatedon a lineby linebasisbased onthe unauditedfinancialstatementsfor

period ended March 31, 2012 and the carrying value of investments held by the Group is eliminated against the subsidia

shareholders' equity in these consolidated condensed interim financial statements. Material intra-Group balances and transactions h

been eliminated.

Associatesare entities over whichthe Grouphas significantinfluencebut not control.Investments in associatesare accounted

under theequity method of accountingand areinitiallyrecognised at cost,thereafter adjustedfor thepost-acquisition change in

Group'sshare of net assetsof theassociate.Thecumulativepost-acquisitionmovementsare adjusted in thecarryingamount of

investment.Accountingpoliciesof theassociate havebeenchangedwherenecessary toensureconsistencywith thepoliciesadop

by the Group. The Group's share in associate has been accounted for based on the financial statements for the period ended Ma

31, 2012.

Minorityinterestare thatpart of thenet resultsof operationsandof netassetsof subsidiarycompaniesattributableto interestswh

are not owned by the Group.

MCBBank Limited ('theBank')is a banking company incorporated in Pakistan and is engaged in commercialbankingand rel

services. TheBank's ordinary shares are listed on all the stock exchanges in Pakistan whereas its Global Depositary Rece

(GDRs)(representingtwo ordinary equityshares)are tradedon theInternational Order Book (IOB) systemof theLondon S

Exchange.TheBank's registeredofficeand principalofficeare situated at MCBBuilding,JinnahAvenue, Islamabadand MCB

Main,Gulberg,Lahore,respectively.The Bankoperates1,165branchesincluding22 Islamicbanking branches(December 31,20

1,165branchesincluding22 Islamicbanking branches)with in Pakistan and8 (December31, 2011:8) branchesoutsidethe cou

(including the Karachi Export Processing Zone Branch).

Inaccordancewith thedirectivesof theFederalGovernmentregardingtheshiftingof thebankingsystemto Islamicmodes,the S

Bank of Pakistan hasissued various circularsfrom timeto time. Permissible forms of trade-related modes of financinginc

purchaseof goods by banks from their customers and immediate resale to them at appropriatemark-up in price on deferred paym

basis. The purchases and sales arising under these arrangements are not reflected in these consolidated condensed interim finan

statements as such but are restricted t o the amount of facility actually utilized and the appropriate portion of mark-up thereon.

Thefinancial results of theIslamic banking branches have been consolidated in these consolidated condensed interim finan

statementsfor reportingpurposes,after eliminatingmaterialintrabranchtransactions/ balances.Key financialfiguresof theIsla

banking branches are disclosed in note 18 to these consolidated condensed interim financial statements.

Sarmad Amin

Director

S.M. Muneer









3.2

3.3

4 BASIS O F MEASUREMENT

4.1

4.2

5 SIGNIFICANT ACCOUNTING POLICIES AND RISK MANAGEMENT

5.1

5.2

6

7. LENDINGS TO FINANCIAL INSTITUTIONS March 31, December 31,

2012 2011

-

-

2,819,768 955,087

2,819,768 955,087

8 I NV ES TM EN TS - N ET

8.1 Investments by types

Held-for-trading securities 5,538,691

-

5,538,691


13,548,342

315,530,995

Held-to-maturity securities 8.2 7,304,613 62,087 7,366,700

314,825, 957 13,610,429 328,436,386

Adamjee Insurance Company Limited 8.3 3,614,503 - 3,614,503

Euronet Pakistan (Private) Limited 8.4 53,413 - 53,413

First Women Bank Limited 8.5 63,300 - 63,300

These consolidated condensed interim financial statements have been prepared under the historical cost convention except that certain

fixed assetsare s tated at revalued amounts , certain investments, commitments in respect of certain forward foreign exchange

contracts and derivative financial instruments have been marked to market and are carried at fair value.

Theaccountingpolicesadoptedin thepreparation of these consolidatedcondensedinterim financialstatementsarethe sameasthose

applied in the preparation of the annual financial statements of the Bank for the year ended December 31, 2011.

The basis for significant accounting estimatesand judgmentsadopted in thepreparation of these consolidatedcondensedinterim

financialstatementsare thesameasthoseappliedinthe preparationof theannualfinancialstatementsof theGroupfortheyear ended

December 31, 2011.

Repurchase agreement lendings

---------- (Rupees in '000) ----------

March 31, 2012

TotalHeld by

bank

Thefinancial risk managementobjectivesand policiesare consistent withthosedisclosed in theannualfinancial statements of the

Group for the year ended December 31, 2011.

SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS

The State Bank of Pakistanhas deferred theapplicabilityof InternationalAccounting Standard (IAS) 39,'Financial Instruments:

Recognitionand Measurement' and InternationalAccountingStandard (IAS) 40, 'Investment Property' for BankingCompanies

through BSDCircular No.10 datedAugust26, 2002.The Securities and ExchangeCommission of Pakistan(SECP)has deferred

applicabilityof IFRS-7"FinancialInstruments:Disclosures"on banksthrough S.R.O411(1)/2008 datedApril 28,2008. Accordingly,

therequirementsof these standardshavenot beenconsidered in thepreparation of these consolidatedcondensed interimfinancial

statements.However,investmentshavebeenclassifiedand valued inaccordancewith therequirementsprescribedby theStateBank

of Pakistan through various circulars.

Thedisclosuresmadein these consolidatedcondensed interimfinancialstatementshave,howeverbeen limitedbased on theformat

prescribed by the State Bank of Pakistan vide BSD Circular No. 2 dated May 12, 2004 and Internation al Accountin g Standard 34,

"Interim Financial Reporting". They do not include all of the disclosures required for annual f inancial s tatements and these

consolidatedcondensedinterimfinancialstatementsshouldbe readin conjunctionwith thefinancialstatementsof theGroupforthe

year ended December 31, 2011.

Given as

collateral

These consolidated condensed inter im financial s tatements are presented in Pak Rupees, which is the Bank's functional and

presentatio n currency .

Call money lendings

3,731,216 - 3,731,216

Investments at cost 318, 557,173 13,610, 429 332, 167,602

Less: Provision for diminution in the value of investments (2,918,252) - (2,918,252)

Investments (net of provisions) 315, 638,921 13,610, 429 329, 249,350

Surplus / (deficit) on revaluation of available for sale securities - net 1,256,255 (6,586) 1,249,669Gain on revaluation of held-for-trading securities - net 23,473 - 23,473

Investments at revalued amounts - net of provisions 316, 918,649 13,603, 843 330, 522,492

Held-for-trading securities 345,602 - 345,6

Available-for-sale securities 8.2 285, 002,260 24, 306,386 309,308,

Held-to-maturity securities 8.2 8,471,928 483,000 8,954,9

293, 819,790 24, 789,386 318,609,

Adamjee Insurance Company Limited 8.3 3,101,352

-

3,101,3

Euronet Pakistan (Private) Limited 8.4 53,917

-

53,9

First Women Bank Limited 8.5 63,300

-

63,3

3,218,569

-

3,218,5

Investments at cost 297,038,359

24,789,386

321,827,

Le ss : Pr ov is io n f or d im in ut io n i n t he v al ue of i nve st me nt s ( 3, 32 7, 065 )

-

(3,327,0

Investments (net of provisions) 293,711,294

24,789,386

318,500,

Surplus on revaluation of available for sale securiti es - net 475,204

13,483

488,6

Gain on revaluation of held-for-trading securities - net 16,616

-

16,6

Investments at revalued amounts - net of provisions 294,203,114

24,802,869

319,005,

8.2

8.3

March 31, December 312012 2011

Opening Balance 3,101,352

3,703,2

Share of profit / (loss) for the period / year before tax 130,707

(73,0

Dividend from associate -

(90,0

Share of tax (6,774)

71,2

123,933

(91,9

Share of unrealized surplus on assets -net of tax 389,218

(509,9

Closing Balance 3,614,503

3,101,3

8.4


2012 2011

Opening balance 53,917 -

Investment made during the year - 52,5

Investment in Adamjee Insurance Company Limited under equity method - holding 29.13%

December 31, 2011

Total

Investments include Pakistan Investment Bonds amountingto Rs. 232.600 million(December 31, 2011: Rs. 232.600 mil

earmarked by the State Bank of Pakistan andNationalBankof Pakistan against TT/ DD discountingfacilitiesand demandn

facilities sanctioned to the Bank. In addition, Pakistan Investment Bonds amounting to Rs. 5 million (December 31, 2011: Rs. 5 mil

have been pledged with the Controller of Military Accounts on the account of Regimental Fund Account.

Held by

bank

Investmentof the Groupin Adamjee Insurance CompanyLimitedhas been accountedfor underthe equitymethodof accountin

accordance with the treatment specified in International Accounting Standard 28, (IAS 28) 'Accounting for Investment

Associates'. The market valueof the investmentin Adamjee Insurance CompanyLimitedas at March 31,2012amountedto

2,039.867 million (December 31, 2011: Rs. 1,675.927 million).

Investment of the Group in Euronet Pakistan Private Limitedhas been accounted for under the equitymethod of accountin

accordance with the treatment specified in International Accounting Standard 28, (IAS 28) 'Accounting for Investment

Associates'.

Investment in Euronet Pakistan Private Limited under equity method - holding 30%

Given as

collateral

Share of profit / (loss) for the period / year before tax (398) 1,5

Share of tax (106) (1

(504) 1,3

Closing Balance 53,413 53,9

8.5 TheGroup's investmentin FirstWomen Bank Limitedis carriedat cost andhave notbeen accountedfor underequitymetho

accounting as the Group does not have significant influence over the entity.

---------- (Rupees in '000) ----------

---------- (Rupees in '000) -------

---------- (Rupees in '000) -------

---------- (Rupees in '000) ----------










12.1

March 31, December 31,

2012 2011

13 CONTINGENCIES AND COMMITMENTS

13.1 Direct credit substitutes

Contingent liabilities in respect of guarantees given favouring


2,634,218

- Banks and financial institutions 2,744,964

2,519,451

- Others 5,022,186

4,885,951

12,136,562

10,039,62013.2 Transaction-related contingent liabilities

Guarantees in favour of:


2,761,601

- Others 4,982,788

4,217,157

Suppliers credit / payee guarantee 2,457,093

2,373,006

8,441,656

9,351,764

13.3 Trade-related contingent liabilities 63,830,600

77,075,699

13.4 Other contingencies

Claims against the Bank not acknowledged as debts 818,363

844,099

13.5 Commitments to extend credit

13.6 Commitments in respect of forward foreign exchange contracts

Purchase 26,888,166

32,395,900

Sale 26,658,002

35,030,445

13.7 Commitments for the acquisition of fixed assets 191,335

276,277

13.8 Taxation

March 31, March 31,

2012 2011

14 BASIC AND DILUTED EARNINGS PER SHARE - AFTER TAX

Profit after taxation 5,747,915

5,112,890

Number of shares

Weighted average number of shares outstanding during the period 919,860,123 919,860,123

Rupees

Basic and diluted Earnings per share - after tax 6.25 5.56

15 CREDIT RATING

The Bankmakes commitmentstoextend credit inthe normalcourseof its businessbut these beingrevocablecommitmentsdo not

attract any significant penalty or expense if the facility is unilaterally withdrawn.

Three months ended

The income tax assessments of the Bank have beenframed upto and includingthe Tax Year 2011. For the Assessment

Year 1988-89 through Tax Year 2011, the department has amended the assessments on certain issues against the Bank.

The Bank has filed appealswhich are pendingat various appellateforums. in addition,certain decision made in favourof

the Bank are being contested by the department at higher forums. No provision has been made in the financial

statements as themanagementandthe Bank's legalcounsel are of the viewthat the issues willbe decidedin theBank's

favour as and when these are taken up by the Appellate Authorities.

---------- (Rupees in '000) ----------

TheFinanceAct, 2009and 2010have madesignificantamendmentsin theSeventhScheduleto Income TaxOrdinance,2001.The

deductionforprovisionfordoubtfulandlosscategoriesof advancesandoff balancesheetitemsisallowableupto a maximumof 1%

of totaladvanceswhereasprovisions for advances and off-balance sheet items for consumer and small and medium enterprises

(SMEs) ("as defined under theSBP's Prudential Regulations") isnow allowed at 5% of total consumer andSME portfolio.The

amountof baddebtsclassifiedas substandardunderPrudentialRegulationsissuedby StateBank of Pakistanwouldnotbe allowedas

an expense.

PACRA throughitsnotificationinJune2011,has assignedlongtermcreditratingof AA+[doubleA plus]and short-termcreditrating

of A1+ [A one plus] to the Bank.

16 SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES

The segment analysis with respect to business activity is as follows:

Total income 34,072

10,408,817

3,689,738

5,971,787

116,223

(20,611)

20,200,


(1,783,236)

(8,553,789)

(997,798)

(58,496)

20,611

(11,383,


-

-

-

-

-

(3,048,

Net income 23,260

8,625,581

(4,864,051)

4,973,989

57,727

-

5,767,

Segment assets - (Gross of NPLs Provisions) 49,597

359,757,327

120,848,353

202,281,771

1,335,740

(1,011,946)

683,260,

Advance taxation (payment less provision) -

-

-

-

-

-

8,868,

Total assets 49,597

359,757,327

120,848,353

202,281,771

1,335,740

(1,011,946)

692,129,


-

8,061,887

18,208,405

-

-

26,270,


-

6,711,023

15,157,372

-

-

21,868,

Segment liabilities 4,631

21,695,261

516,062,029

30,858,885

99,840

(1,011,946)

567,708,

Deferred tax liabilities - net -

-

-

-

-

-

6,760,

Total liabilities - net 4,631

21,695,261

516,062,029

30,858,885

99,840

(1,011,946)

574,469,

Segment return on assets (ROA) (%) -

11.57% 12.93% 12.77% 34.80% -

-

Segment cost of fund (%) -

11.37% 4.44% 6.11% -

-

-

Total income 10,212

7,506,536

3,507,540

7,084,788

71,678

(25,440)

18,155,


(1,459,525)

(7,132,321)

(1,572,564)

(39,446)

25,440

(10,186,


-

-

-

-

-

(2,856,

Net income 2,561

6,047,011

(3,624,781)

5,512,224

32,232

-

5,112,

Seg me nt a ssets - (Gross o f NPLs p ro v is ion ) 4 1,49 7

276,077,842

113,288,322

234,726,399

535,092

(709,094)

623,960,

Advance taxation (payment less provision) -

-

-

-

-

-

3,764,

Total assets 41,497

276,077,842

113,288,322

234,726,399

535,092

(709,094)

627,724,


-

6,700,062

18,193,854

-

-

24,893,


-

5,376,326

14,599,279

-

-

19,975,

Segment liabilities 3,976

24,748,306

463,859,918

29,698,803

24,644

(709,094)

517,626,

Deferred tax assets - - - - - - 5,343,

Total liabilities - net 3,97 6 24,748,306 463,85 9,91 8 29,698,803 24,644 (709,094) 522,970,

Segment return on assets (ROA) (%) - 10.88% 13.00% 12.87% 53.58% - -

Segment cost of fund (%) - 11.39% 3.96% 5.64% - - -

Asset

Management



E li mi na ti on To tal

---------------------------------------------(Rupees in '000)-----------------------------------------

Corporate

Finance

Trading

and

Sales

Retail &

Consumer

Banking

Commercial

Banking

---------- (Rupees in '000) ----------



17 RELATED PARTY TRANSACTIONS

DepositsDeposits at beginning of the period / year 4,398,756

2,088,985 766,387

955,014 25,393,804

24,677,392 50,178 90,816

Deposits received during the period / year 1,100,134

20,407,581

30,536,355

169,261,154

74,117,220

250,452,445

190,356 830,780

Deposits repaid during the period / year (1,064,312)

(18,097,810)

(30,733,501)

(169,449,781)

(73,141,611)

(249,736,033)

(178,102) (871,418)

Deposits at the end of the period / year 4,434,578

4,398,756

569,241

766,387

26,369,413

25,393,804

62,432 50,178

Advances (secured)

Balance at beginning of the period / year -

-

-

-

81,302

-

49,743 54,474

Loan granted during the period / year -

-

-

-

67,815

81,302

1,796 3,525

Repayment during the period / year -

-

-

-

(54,072)

-

(4,895) (8,256)

Balance at end of the period / year -

-

-

-

95,045

81,302

46,644 49,743

Outstanding Balance of credit card 713

1,137

-

-

-

-

866 856

Receivable from Pension Fund -

-

-

-

15,031,898

14,731,898

- -

Adamjee Insurance Company Limited

Insurance premium paid-net of refund -

-

202,676

-

-

-

- -

Insurance claim settled -

-

17,863

8,443

-

-

- -

Rent Income received -

-

405

1,638

-

-

- -

Outstanding commitments and contingent liabilities -

-

8,365

8,365

-

-

- -

Banca Revenue -

-

89,554

38,144

-

-

- -

---------------------------------------------------------- (Rupees in '000) --------------------------------------------------------------

March 31,

2012

March /

December 31,

2011

March 31,

2012

March 31,

2012

Three months

ended

March 31,

2012

March 31,

2012

Three months

ended

March 31,

2012

Year

ended

Dec 31,

2011

Key management personnel

Year

ended

Dec 31,

2011

March /

December 31,

2011

March /

December 31,

2011

Year

ended

Dec 31,

2011

Key management personnel

Three months

ended

March 31,

2012

Other Related Parties

Year

ended

Dec 31,

2011

Directors Other Related Parties

March /

December 31,

2011

Directors

The Group has related party relationship with its associates, employee benefit plans and its key management personnel (including their associates) and companies with common directors.

TheGroupentersintotransactionswithrelatedpartiesinthe normalcourseof business.Contributionstoand accrualsin respectof staffretirementbenefitsandotherbenefitplansaremadeinaccordancewiththe

actuarial valuations / terms of the contribution plan. Remuneration to the executives / officers is determined in accordance with the terms of their appointment.

Three months

ended

March 31,

2012

Associates

Associates

Details of transactions with related parties and balances with them as at the period-end were as follows:

---------------------------------------------------------- (Rupees in '000) --------------------------------------------------------------

Adamjee Life Assurance Company Limited

Insurance Premium Paid - - 25,262 26,342 - - - -

Insurance claim settled -

-

18,686

-

-

-

- -

Outstanding commitments and contingent liabilities -

-

500

500

-

-

- -

Euronet Pakistan Private Limited

ATM Outsourcing Revenue -

-

29,258

5,607

-

-

- -

Capital injection -

-

-

52,519

-

-

- -

Trade payable -

-

4,292

7,317

-

-

- -

Training expenses reimbursed -

-

-

27

-

-

- -

Mayban International Trust (Labuan) Berhad

Forward foreign exchange contracts (Notional) -

-

-

-

-

1,913,753

- -

Unrealized loss on forward foreign exchange contracts -

-

-

-

-

40,914

- -

MCB Employees Foundation

Service expenses -

-

-

-

4,594

4,378

- -

Cash sorting expenses -

-

-

-

8,966

10,889

- -

Stationery Expenses -

-

-

-

40,095

31,484

- -

Advance receivable -

-

-

-

20,000

20,000

- -

Payable for stationery expenses -

-

-

-

6,834

1,255

- -

MCB Employees Security System

and Services (Private) Limited

Security guard expenses -

-

-

-

63,507

47,384

- -

Remuneration of key management personnel 16,134 15,302 - - - - 46,828 40,212Mark-up expense on deposits 89,899 21,785 20,410 16,535 995,318 1,058,302 1,059 1,025

Markup income on advances - - - - 2,346 - 888 636

Clearing expenses paid to NIFT - - - - 29,268 30,065 - -

Other miscellaneous expenses - - - - 3,195 3,924 - -

Investment in Metro-BankPakistan Sovereign Fund-Perpetual - - - - 4,000,000 4,000,000 - -

Dividend Income - - - - 216,893 - - -

Contribution to provident fund - - - - 43,941 39,703 - -

Commission Received - - 919 - 13 - - -

Gas charges - - - - 3,115 2,239 - -

Rent Paid - - - - 53 42 - -

Others

The chairman has been provided with free use of the Bank maintained car. The Chief Executive and certain executives are provided with free use of the Bank's maintained cars and household

equipment in accordancewith the terms of their employment.






18 ISLAMIC BANKING BUSINESS


2012 2011

Assets

Cash and balances with treasury banks 278,465

334,39

Investments - net 2,818,271

2,938,70

Financing and receivables

- Murabaha 4,490,409

4,094,21

- Ijara 95,899

96,14

- Islamic export refinance 1,189,248

1,420,78

Fixed Assets 996,394

1,008,86

Deferred tax assets 720

Other assets 3,059,821

3,330,88

12,929,227

13,223,99

Liabilities

Bills payable 108,607

45,29

Deposits and other accounts -

- Current accounts 813,666 1,022,11

- Saving accounts 1,578,387

1,636,92

- Term deposits 3,259,045

4,565,23

- Others 13,759

81,50

Borrowing from SBP 1,391,682

1,664,99Due to head office 4,367,708

2,558,62

Deferred tax liability -

8,18

Other liabilities 372,270

449,51

11,905,124

12,032,39


1,191,59

Represented by:

Islamic Banking Fund 1,000,000

1,000,00

Other Reserves (124)

7

Unappropriated profit 25,564

176,33

1,025,440

1,176,40

Surplus / (deficit) on revaluation of assets - net of tax (1,337)

15,19

1,024,103

1,191,59

CHARITY FUND

Opening balance 782 1,76

Additions during the year

Received from customers on delayed payments 829 1,39

Profit on charity saving account 14 12

843 1,51

---------- (Rupees in '000) --------

The Bank is operating 23 Islamic banking branches including 1 overseas branch (December 31, 2011: 23 branches includi

overseas). The statement of financial position of the Bank's Islamic Banking Branches as at March 31, 2012 is as follows:

Payments / utilization during the year

Social Welfare - (1,50

Health - (1,00

- (2,50

Closing balance 1,625 78





35



19

20

21

Quarter ended Quarter ended

March 31,

2012

March 31,

2011

Income / return / profit earned 349,420

380,684

Income / return / profit expensed 278,248

266,914

Net Income / Profit 71,172

113,770

Provision against loans and advances - net (130)

9,290

Provision for diminution in the value of investments -

-

Bad debts written off directly -

-

(130)

9,290

Net profit / income after provisions 71,302

104,480

Other income

Fees, commission and brokerage income 8,904

13,723

Dividend income -

Income from dealing in foreign currencies 2,342

412

Other Income 30,406

5,467

Total other income 41,652

19,602

112,954

124,082

Other expenses

Administrative expenses 87,045

65,895

Other provisions / write offs -

-

Other charges (Penalty paid to SBP) 344

237

Total other expenses 87,389

66,132

Extra ordinary / unusual items -

-

Profit before taxation 25,565

57,950

Remuneration to Shariah Advisor / Board 486

420

GENERAL

- Figures have been rounded off to the nearest thousand of rupees unless otherwise stated.

-

NON-ADJUSTING EVENT

DATE OF AUTHORIZATION FOR ISSUE

Comparative information has been reclassified and rearranged in these unconsolidated condensed interim financial statements for the

purpose of comparison.

Theprofitand loss accountof theBank's Islamicbankingbusinessforthe threemonthsperiod ended March 31, 2012 isas

follows:

---------- (Rupees in '000) ----------

TheBoard of Directorsin itsmeetingheldon April24,2012hasannouncedcash dividendinrespect of the threemonthsperiodended

March 31, 2012of Rs. 3.00 per share (March 31, 2011: Rs. 3.00 per share). These consolidatedcondensed interimfinancial

statements for the three monthsperiodended March 31, 2012do not includethe effect of these appropriationswhich willbe

accounted for subsequent to the period end.

These consolidatedcondensedinterimfinancialstatements were authorizedfor issueby theBoardof Directorsof theBank intheir

meeting held on April 24, 2012 .

Sarmad Amin

Director

S.M. Muneer


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MCB First Quarter Result 2012

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