1. www.vustudents.ning.com In the name of Allah Who is the most beneficent & the most merciful www.vusrudents.ning.com

2. LOGO www.vustudents.ning.com MBA Finance

3. www.vustudents.ning.com

4. Introduction to MCB A bank is a financial institution which deals with money and credit. It is an intermediate between two parties. A bank is a firm that takes deposits from household, firms and makes loans to household and firms.

5. www.vustudents.ning.com History Muslim Commercial Bank Ltd. Unfold 57-years’ growth. MCB is not an overnight success story. The bank started corporate life in Calcutta on July 9, 1947. After the partition of the Indo-Pak Subcontinent, the bank moved to Dhaka from where it commenced business in August 1948. In 1956, the Bank transferred it Registered office to Karachi, where the Head Office is presently located. Main Muhammad Mansha Chairman and chief executive of MCB

6. www.vustudents.ning.com P oAuto Loan oBusiness Sarmaya oTractor finance scheme oMORTGAGE S oMCB ATM Services oMCB Mobile Banking oMCB Call Center oBasic Banking Account (BBA) oCurrent Account oSaving Account oBusiness Account D

7. www.vustudents.ning.com Allied Bank Limited United Bank Limited Askari Bank Limited Add Your Title

8. www.vustudents.ning.com 6500 292,098330,274367,604 218,960262,510253,149 113,08996,256167,134 394,06822,66344,662 5,1309,19315,779 15,26515,37415,495 200720082009 Authorize capital Deposits Advances Investment Borrowing Reserve Profit after tax Description

9. www.vustudents.ning.com Organizational Hierarchy Chart President Chairman Vice president Chief Financial Advisor Audit Committee Regional Manager Branch Manager Senior Vice President

10. www.vustudents.ning.com 15-10-201030-11-2010 JoiningAdjoining

11. www.vustudents.ning.com Working Departments Remittance 1st week 2nd week 3rd week Customer service Account 4th week 5th week 6th week Collect External information Cash Clearing Departme nt

12. www.vustudents.ning.com Activity Leverage Liquidity Ratios Market Profitability

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14. Current Ratio Ratio Analysis Muslim Commercial Bank Limited Current Ratio = Current assets Current Liability 200720082009 Current Ratio 62411535/22201551 2.81 67584827/31897249 2.11 70824959/24020172 2.94

15. www.vustudents.ning.com Quick Ratio (Acid Test) Ratio Analysis Muslim Commercial Bank Limited Current Ratio = Current assets- prepaid Expenses Current Liability 200720082009 Quick Ratio62411535/22201551 2.81 67584827/31897249 2.11 70824959/24020172 2.94

16. www.vustudents.ning.com Working Capital Ratio Ratio Analysis Muslim Commercial Bank Limited Working Capital ratio = Current Assets - Current Liability 200720082009 Working Capital Ratio 62411535-22201551 40209984 67584827-31897249 35687578 70824959-24020172 46804787

17. www.vustudents.ning.com Working of Current Assets Current Assets 2007 (Rs) 2008 (Rs) 2009 (Rs) Cash and balances with treasury banks 3968388339,631,17238,774,871 Balances with other banks 38075194,043,1006,009,993 Landings to financial institutions 10513724,100,0793,000,000 Other assets – net1786876119,810,47623,040,095 Total624115356758482770824959

18. www.vustudents.ning.com Working of Current Liabilities Current Liabilities 2007 (Rs) 2008 (Rs) 2009 (Rs) Bills payable 1047905810,551,4688,201,090 Other liability 1172249321,345,78115,819,082 Total222015513189724924020172

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20. Debt Ratio Ratio Analysis Muslim Commercial Bank Limited Debt Ratio = Total Debt / Total Assets 200720082009 Debt Ratio 355365842/410485517 0.86 385179850 /443615904 0.868 439483714/509,223,727 0.86

21. www.vustudents.ning.com Working of Total (Liability) Debt Total debt 2007 (Rs) 2008 (Rs) 2009 (Rs) Bills payable 1047905810,551,4688,201,090 Borrowing 3940683122,663,84044,662,088 Deposit and other account 292098066330,181,624367,604,711 Other liability 1172249321,345,78115,819,082 Deferred tax liabilities – net 1180162437,1373,196,743 Sub-ordinate loan 479232-- Total 355365842385,179,850439,483,714

22. www.vustudents.ning.com Working of Total Assets Total Assets 2007 (Rs) 2008 (Rs) 2009 (Rs) Cash and balances with treasury banks 3968388339,631,17238,774,871 Balances with other banks38075194,043,1006,009,993 Lending to financial institution 10513724,100,0793,000,000 Investment11308926196,631,874167,134,465 Advances218960598262,135,470253,249,407 Other asset1786876119,810,47623,040,095 operating fixed Assets1602412317,263,73318,014,896 Deferred tax Assets--- Total 410485517443615904509223727

23. www.vustudents.ning.com Debt / Equity Ratio Ratio Analysis Muslim Commercial Bank Limited Debt to Equity Ratio: = Total liabilities (Debt) / Shareholder equity 200720082009 Debt / Equity Ratio 355365842 /55119675 6.44 385179850 / 58436054 6.59 439483714 / 69740013 0.63

24. www.vustudents.ning.com Working of Shareholder Equity Share Holder Equity = Total Assets – Total Liabilities

25. www.vustudents.ning.com Times Interest Earned Ratio Analysis Muslim Commercial Bank Limited Time Interest Earned Ratio = (EBIT) / Interest expenses 200720082009 Time Interest Earned 29173568 / 7,865,533 3.70 33428306 /11,560,740 2.89 38996408 /15,841,463 2.46

26. www.vustudents.ning.com Working of EBIT EBIT2007 (Rs) 2008 (Rs) 2009 (Rs) Profit before tax 2130803521,867,56623,154,945 Add) interest / markup expenses 786553311,560,74015,841,463 Total 291735683342830638996408 Interest / markup Expenses are available in P&L Account

27. www.vustudents.ning.com TOTAL CAPITALIZATION RATIO Ratio Analysis Muslim Commercial Bank Limited Total Capitalization Ratio = Long term debt / Long term debt + Share holder equity 200720082009 Total Capitalizat ion ratio 1659394 / 1659394+5511967516 59394 / 56779069 0.02 437137 / 437137+58436054 437137 / 58873191 0.13 3196743 / 3196743+ 69740013 3196743 / 72936756 0.04

28. www.vustudents.ning.com Working of long term liabilities Long term Liabilities Year 2007 (Rs) Year 2008 (Rs) Year 2009 (Rs) Sub-ordinates loans 292098066 - - Deferd tax liability 1180162437,1373,196,743 Liabilities against assets subject to finance lease 479232-- Total 293757460 437,1373,196,743

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30. Total Assets Turnover Ratio Analysis Muslim Commercial Bank Limited Total Assets Turnover = Sales / Total Assets 200720082009 Total Asset Turnover 31786595 /410485517 0.07 40043824 /443615904 0.09 51616007 /509223727 0.10

31. www.vustudents.ning.com Fixed Assets Turnover Ratio Analysis Muslim Commercial Bank Limited Fixed Assets Turnover = Sales / Total Fixed Assets 200720082009 Fixed Assets Turnover 31786595 /16024123 1.98 40043824 / 17263733 2.31 51616007 / 18014896 2.86

32. www.vustudents.ning.com  Sale is the value of "Net Sales" or "Sales" from the company's income statement  Total Fixed Assets Total fixed assets are the value of all the assets which is not current assets. Total Fixed assets are available in the balance sheet.

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34. Net Profit Margin Ratio Analysis Muslim Commercial Bank Limited Net Profit Margin = Net Income / sales *100 200720082009 Net profit Margin 20,808,390 / 31786595 0.65 or 65.4% 20,526,669 / 40043824 0.51 or 51.2% 24,710,953 / 51616007 0.47 or 47.8%

35. www.vustudents.ning.com Working of Net Income Net Income200720082009 Net mark–up / interest income after provisions 2085601124,463,96328,452,223 Add) Non–mark–up / interest income 60112915,791,4405,642,885 Less) Non–mark–up / interest expenses 268673028,387,83710,940,163 Profit before tax2130803521,867,56623,154,945 Less) taxes60424736,492,9667,659,648 Profit after tax1526556215,374,60015,495,297 Less) other expenses55428285,152,0699,215,656 Net income2080839020,526,66924,710,953

36. www.vustudents.ning.com Return on Assets Ratio Analysis Muslim Commercial Bank Limited Return on Assets = Net income after tax / Total Assets * 100 200720082009 Return on Assets 15265562/410485517*1 00 3.71% 15374600/443615904*1 00 3.46% 15495297/509223727*1 00 3.04%

37. www.vustudents.ning.com Working of Net income after tax Net income after tax 200720082009 Net mark–up / interest income after provisions 2085601124,463,96328,452,223 Add) Non–mark–up / interest income 60112915,791,4405,642,885 Less) Non–mark–up / interest expenses 268673028,387,83710,940,163 Profit before tax 2130803521,867,56623,154,945 Less) taxes 60424736,492,9667,659,648 Net income after tax 1526556215,374,60015,495,297

38. www.vustudents.ning.com Operating Income Margin Ratio Analysis Muslim Commercial Bank Limited Operating margin = operating Income / Net sales*100 2007 2008 2009 Operating income margin 24,369/31786595 7.66 % 25,910 / 40043824 6.47% 30,620 / 51616007 5.93%

39. www.vustudents.ning.com Operating Income = Available in Six year Analysis of the company

40. www.vustudents.ning.com Return on Operating Assets Ratio Analysis Muslim Commercial Bank Limited Return on operating Assets = sales / operating assets 200720082009 Return on operating Assets 31786595/16082781 1.97 40043824 / 17320485 2.31 51616007 / 18099010 2.85

41. www.vustudents.ning.com Working of operating Assets Operating Assets200720082009 Capital work–in– progress 233390510,2261,099,749 Property and equipment 1560766016,562,30916,666,905 Intangible asset 183073191,198248,242 Total1602412317,263,73318,014,896

42. www.vustudents.ning.com Return on Equity Ratio Analysis Muslim Commercial Bank Limited Return on Equity = Net income after tax / Total Equity* 100 200720082009 Return on equity 15265562/45414156*10 0 33.6% 15374600/52244865* 100 29.4% 15495297/61075932* 100 25.4%

43. www.vustudents.ning.com Working of Total Equity Total equity200720082009 Share capital62827686,282,7686,911,045 Reserves3400063836,768,76538,385,760 Un appropriated profit 51307509,193,33215,779,127 Total4541415652,244,86561,075,932

44. www.vustudents.ning.com Gross profit Margin Ratio Analysis Muslim Commercial Bank Limited Gross Profit Margin Ratio = Gross Profit / Net Sales 20072008 2009 Gross Profit Margin 23921062 / 31786595 0.75 28483084 / 40043824 0.71 35774544 / 51616007 0.69

45. www.vustudents.ning.com Working of Gross Profit Gross Profit200720082009 Mark–up / return / interest earned 3178659540,043,82451,616,007 Less) Mark–up / return / interest expensed 786553311,560,74015,841,463 Total2392106228,483,08435,774,544

46. www.vustudents.ning.com DuPont Return on Assets Ratio Analysis Muslim Commercial Bank Limited DuPont Return on Assets = Net Income * Sales_____ Sales Total Assets 200720082009 DuPont return on assets 20,808,390/31786595 * 31786595/410485517 0.65*0.07 0.04 20,526,669 / 40043824 * 40043824 /443615904 0.41*0.09 0.03 24,710,953 / 51616007 * 51616007 /509223727 0.47*0.10 0.04

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48. Dividend Per Share Ratio Analysis Muslim Commercial Bank Limited Dividend per share = Dividend paid to share holder Average common share outstanding 200720082009 Dividend per share 4728496/ 691104527 400.0 9834175/ 691104527 125.9 6735510 / 691104527 219.7

49. www.vustudents.ning.com Dividend paid to share holder Source: Cash flow statement of MCB Average common share outstanding source: financial statement analysis notes of MCB Note # 32 page # 106

50. www.vustudents.ning.com Earning Per Share Ratio Analysis Muslim Commercial Bank Limited Earning Per share = Profit Available to shareholders or Net income after tax No of shares outstanding 200720082009 Earning per share 20,808,390 / 1102183 22.09 20,526,669 / 921304 22.25 24,710,953 / 1118648 22.42

51. www.vustudents.ning.com No of shares outstanding = Net income after tax EPS EPS is available in balance sheet Net income is available in P&L account of the MCB

52. www.vustudents.ning.com Price Earning Ratio Ratio Analysis Muslim Commercial Bank Limited Price Earning Ratio = Current market Share price / Earning Per Share 200720082009 Price Earning ratio 18.11 * 22.09 400.0 5.66 *22.25 125.9 9.80 * 22.42 219.7

53. www.vustudents.ning.com Working of Price Earning Ratio EPS is available in balance sheet PE Ratio is available in year analysis of the company. Current market Share price = PE * EPS

54. www.vustudents.ning.com Conclusion  The overall analysis shows that MCB is in good condition throughout the analysis years 2007  In the next year 2008 & 2009, there is decrease in the value of profit as compare to previous year. During this year the operating cost was max and its operational profit was minimum as compare to previous year.The reason behind this due to uncertainty in the process of increase in payables, increase in capital work in progress and less investment during this year.  Earning per share is also increase during these years for the stocks holders and the persons interested in MCB investment.  Insufficient Staff in branches

55. www.vustudents.ning.com Recommendation  MCB Should focus more on training needs of staff in line with practical banking, especially IT based products  Bank should acquire modern automation system to provide efficient and prompt service to the customers  Before lending loan to the client or financing a project a team of expert should physically visit the site and then evaluate its feasibility for investment. If the investment and project is profitable then should go on otherwise should not invest.  Increase in Mobile Banking including ATM, online Banking etc.  Take step to increase the profit.  Investment in assets should be appropriate.

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