1. MC:MC
MBA
FINANCE

2. 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

3. 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

4. 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

5. Organizational Hierarchy Chart

6. Training Program

7. 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

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

9. Ratio Analysis

10. 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%

11. 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%

12. 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
= times

13. 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

14. 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 %

15. 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
= %
(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 %

16. 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%

17. 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
= times
488,482,736/570,481,863
=0.8562times
564,670,502/656,324,807
= times

18. 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

19. 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

20. 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
= Times
225,794,738/491,146,798
=0.459Times

21. 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/
= times

22. 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/
=11.71 Rs

23. 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/
=23.09 Rs

24. 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

25. 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

26. 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