MC:MC100200882 MBA FINANCE

Brief introduction of the Organization MCB was incorporated in 9 July 1947 MCB is the 1st private bank in Pakistan MCB Head office situated in Karachi MCB have 988 branch network including 6 Islamic branches in Pakistan and six overseas branches. MCB focus on two business one is commercial banking and other is corporate banking and as well as consumer banking

Business Volume of MCB Year 2011 Rs. in Million Total Assets 656,324,807 Total Liabilities 564,670,502 Shareholder’s Equity 81,034,402 Total Income 76,457,162 Advances 255,794,738 Deposits 491,146,798 Earning per Share 23.05

MCB Major Competitors The bank of Khyber The bank of Punjab Habib Bank Limited Meezan Bank Standard Chartered Bank Limited United Bank Limited National Bank of Pakistan Allied Bank Limited

Organizational Hierarchy Chart

Training Program

Account Opening Department Help customer in filling account opening form Recording of new account on ledger Help customers in filling deposits slips Take signature of the customers on SS card

Bill Collection Department Making scroll of Utility bills Calculation of scrolls Remittance Department Make Demand Draft is Supervision of Remittance Officer

Ratio Analysis

Muslim Commercial Bank Net Profit Margin Ratio Analysis Muslim Commercial Bank Net Profit Margin = (Net Profit after Taxation /Net Sales)*100 Net Profit Margin Year 2009 Year 2010 Year 2011 15,665,403/51,621,911*100 =30.35% 16,872,126/54,829,365*100 =30.78% 19,302,483/68,215,902*100 =28.29%

Muslim Commercial Bank Gross Spread Ratio Ratio Analysis Muslim Commercial Bank Gross Spread Ratio = (Net Interest Margin / Net Interest Earned) * 100 Gross Spread Ratio Year 2009 2010 2011 35,786,330/51,621,911*100 = 69.4% 36,801,993/54,829,365*100 =67.2 % 44,583,287/68,215,902*100 = 65.4%

Non interest Income to Total Income Muslim Commercial Bank Ratio Analysis Muslim Commercial Bank Non interest Income to Total Income Ratio = Non Interest Income / Total income Non interest Income to Total Income Year 2009 2010 2011 5,754,853/57,376,764 =0.101 times 6,441,642/61,271,007 =0.106 times 8,241,260/76,457,162 = 0.108 times

Muslim Commercial Bank Spread Ratio Ratio Analysis Muslim Commercial Bank Spread Ratio = Interest Earned / Interest Expense Spread Ratio Year 2009 2010 2011 51,621,911/15,835,581 =3.26 times 54,829,365/18,027,372 =3.05times 68,215,902/23,632,615 = 2.89times

Muslim Commercial Bank Return on Assets Ratio Analysis Muslim Commercial Bank Return on Assets= Net income / Totals assets * 100 Return on Assets Year 2009 2010 2011 15,665,399/5 11,741,878*10 =3.07% 16,872,126/570,481,63*100 =2.96% 54,954,397/666,324,807*100 = 8.25 %

DuPont Return On Assets Muslim Commercial Bank Ratio Analysis Muslim Commercial Bank (Net Income / Sales) x (Sales / Total Assets) * 100 DuPont Return On Assets Year 2009 2010 2011 (15,665,403/51,621,911)(51,621,911/511,741,878)*100 =3.07 % (16,872,126/54,829,365)(54,829,365/570,481,863)*100 = 2.96 % (19,302,483/68,215,902) x(68,215,902/656,324,807) x 100 =2.89 %

Muslim Commercial Bank Return on Total Equity Ratio Analysis Muslim Commercial Bank Return on Total Equity = (Net Profit after Taxation / Total Equity) x 100 Return on Total Equity Year 2009 2010 2011 15,665,403/63,120,371*100 =24.82 % 16,872,126/71,225,105*100 =23.69 % 19,302,483/81,034,402*100 =23.83%

Muslim Commercial Bank Debt Ratio Ratio Analysis Muslim Commercial Bank Debt Ratio = Total Liabilities / Total Assets Debt Ratio Year 2009 2010 2011 439,428,598/511,741,878 =0.8586 times 488,482,736/570,481,863 =0.8562times 564,670,502/656,324,807 =0.8475 times

Muslim Commercial Bank Debt/ Equity Ratio Ratio Analysis Muslim Commercial Bank Debt/Equity Ratio = Total Liabilities / Total Shareholder Equity Debt/ Equity Ratio Year 2009 2010 2011 439,428,598/63,120,371 =6.97 times 488,482,736/71,225,105 =6.86 times 564,670,502/81,034,402 = 6.97 times

Muslim Commercial Bank Times Interest Earned Ratio Analysis Muslim Commercial Bank Times Interest Earned = EBIT / Interest Expense Times Interest Earned Year 2009 2010 2011 39,188,868/15,839,722 =2.47 Times 44,537,008/18,027,372 54,954,397/23,632,615 =2.33 Times

Advance / Deposit Ratio Muslim Commercial Bank Ratio Analysis Muslim Commercial Bank Advance / Deposit Ratio = Total Advances / Total Deposits Advance / Deposit Ratio Year 2009 2010 2011 253,248,265/367,581,075 =0.689 Times 254,565,471/431,295,499 = 0.591 Times 225,794,738/491,146,798 =0.459Times

Operating Cash Flow Ratio Muslim Commercial Bank Ratio Analysis Muslim Commercial Bank Operating Cash Flow Ratio = Cash Flow from Operations / Current Liabilities Operating Cash Flow Ratio Year 2009 2010 2011 78,214,049/425,160,902 =0.184times 58,654,480/473,676,156 =0.124 times 124,163,869/550498995 = 0.226 times

Muslim Commercial Bank Dividend per Share Ratio Analysis Muslim Commercial Bank Dividend per Share =Total Dividend / No. of Outstanding Shares Dividend per Share Year 2009 2010 2011 6,735,510/691,104.5*100 =9.75 Rs 8,567,547/760,215 =11.27 Rs 9,785,295/836236.5 =11.71 Rs

Muslim Commercial Bank Earning per Share Ratio Analysis Muslim Commercial Bank Earning per Share = Net Income / Number of Share Outstanding Earning per Share Year 2009 2010 2011 15,665,403/691,104.5 =22.67 Rs 16,872,126/760,215 =22.19Rs 19,302,483/836236.5 =23.09 Rs

Muslim Commercial Bank Price/ Earning Ratio Ratio Analysis Muslim Commercial Bank Price/ Earning Ratio = Market Value per Share / Earning per Share Price/ Earning Ratio Year 2009 2010 2011 219.68/22.66 =9.69Rs 228.54/22.19 =10.29Rs 134.60/23.05 = 5.84 Rs

Conclusion MCB is a private bank and have largest branch network MCB trying to provide its customer better service Bank has clearly defined organizational structure which supports clear line of communications and reporting relationships. Bank has great potential to pay advance and additional loans Banks has increasing return on assets; company is using its assets efficiently to get favorable return on its assets Bank is performing well financially

Recommendations MCB need to provide training to its staff for providing more better customer services MCB should provide credit card facility to its customers MCB should increase its employee pay and benefits to motivate them. Bank need to attract more customer deposits and improve its debt ratio from further decreasing Company need to improve its Net interest margin to improve its gross spread ratio MCB should expand its operation to increase the cash flow from operating activities