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    Muslim Commercial Bank

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    Sana Syed
    MCB Bank Limited is one of the oldest and leading banks in Pakistan. Assets increased 27.56% in 2017 to Rs. 1,373.43 billion due to increases in balances with other banks, investments, advances and fixed assets. Liabilities increased 30.74% to Rs. 1,216.88 billion from increases in borrowings and deposits. Sales increased 10% to Rs. 74.09 billion while net profit decreased slightly by 0.45% to Rs. 21.96 billion in 2017. Reserves increased 33% to Rs. 70.87 billion in 2017.

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    Muslim Commercial Bank

    Uploaded by

    Sana Syed
    37 views20 pages
    MCB Bank Limited is one of the oldest and leading banks in Pakistan. Assets increased 27.56% in 2017 to Rs. 1,373.43 billion due to increases in balances with other banks, investments, advances and fixed assets. Liabilities increased 30.74% to Rs. 1,216.88 billion from increases in borrowings and deposits. Sales increased 10% to Rs. 74.09 billion while net profit decreased slightly by 0.45% to Rs. 21.96 billion in 2017. Reserves increased 33% to Rs. 70.87 billion in 2017.

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    MCB Bank Limited is one of the oldest and leading banks in Pakistan. Assets increased 27.56% in 2017 to Rs. 1,373.43 billion due to increases in balances with other banks, investments, advances and fixed assets. Liabilities increased 30.74% to Rs. 1,216.88 billion from increases in borrowings and deposits. Sales increased 10% to Rs. 74.09 billion while net profit decreased slightly by 0.45% to Rs. 21.96 billion in 2017. Reserves increased 33% to Rs. 70.87 billion in 2017.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    37 views20 pages

    Muslim Commercial Bank

    Uploaded by

    Sana Syed
    MCB Bank Limited is one of the oldest and leading banks in Pakistan. Assets increased 27.56% in 2017 to Rs. 1,373.43 billion due to increases in balances with other banks, investments, advances and fixed assets. Liabilities increased 30.74% to Rs. 1,216.88 billion from increases in borrowings and deposits. Sales increased 10% to Rs. 74.09 billion while net profit decreased slightly by 0.45% to Rs. 21.96 billion in 2017. Reserves increased 33% to Rs. 70.87 billion in 2017.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 20

    Department of Management Sciences

    Islamia University of Bahawalpur

    Submitted by: Group Members

    Sana Syed (Roll # o1)

    Mariam Abid (Roll # 07)

    Zoya Sammar (Roll # 02)

    Project on: Organizational Analysis of MCB

    Semester: 1st

    Session: 2018 - 2020

    Subject: Business Economics

    Course Code: DMS-22105

    Submitted to: Hafiz Ammar Zafar

    1
    Table of Contents

    Historical Background ................................................................................................................................... 3


    Formation...................................................................................................................................................... 4
    Board of Directors ......................................................................................................................................... 5
    Sales Analysis ................................................................................................................................................ 7
    Profit Analysis ............................................................................................................................................... 8
    Reserved Account Analysis ........................................................................................................................... 9
    Dividend Analysis ........................................................................................................................................ 10
    Dividend per Share Analysis ........................................................................................................................ 11
    Earnings per Share Analysis ........................................................................................................................ 12
    Profit Margin Ratio Analysis ........................................................................................................................ 13
    Assets Analysis ............................................................................................................................................ 14
    Liabilities Analysis ....................................................................................................................................... 15
    Horizontal Analysis of Assets, Liabilities and Equity ................................................................................... 16
    Liabilities to Assets Ratio ............................................................................................................................ 18
    Capital Ratio ................................................................................................................................................ 19
    References .................................................................................................................................................. 20

    2
    Historical Background

     MCB Bank Limited is one of the oldest and leading banks in Pakistan. It was
    incorporated on July 9 in 1947. MCB Bank was nationalized along with other
    private banks in 1974 as part of Government of Pakistan's economic reform
    movement and was later privatized in 1991. The Bank has journeyed a
    remarkable tenure of more than half a century of competitively edged and
    well positioned heights of success by deploying quality banking, heads on
    technological developments, professionally leading management and prudent
    and ethical work methodologies.

     The Bank is versed as one of the oldest and most responsible Banks in Pakistan
    and has played vital role in representing the country on global platforms while
    being one of the few institutions that are recognized and traded in the
    international market.

    3
    Formation

     MCB Bank Limited was incorporated by the Adamjee Group on July 9, 1947.
    The bank was established to provide banking facilities to the business
    community of South Asia. The bank was nationalized in 1974 during the
    government of Zulfikar Ali Bhutto. This was the first bank to be privatized in
    1991 and the bank was purchased by a Pakistani corporate groups led by
    Nishat Group. The president of the bank is Imran Maqbool.

     The group has a presence in business sectors of the country such as banking,
    textile, cement and insurance. Mian Muhammad Mansha is chairman of both
    the group and MCB.

    4
    Board of Directors

    1. Chairman – Mian Mohammad Mansha


    2. Vice Chairman – Mr. S. M. Muneer
    3. President & CEO – Mr. Imran Maqbool
    4. M. Farooq Wasi – Group Head Audit

    5
    Consolidated
    Statement
    of Financial Position

    6
    Sales Analysis

    Sales are increased by 10% in 2017.

    In 2017: 74,090,972

    In 2016: 67,400,294

    Change: 6,690,678

    Percentage Increase: (6,690,678 / 67,400,294) * 100 = 10%

    Reasons:

    On loans and advances to:

    - Customers

    On investments in:

    - Held for trading securities

    - Available for sale securities

    - Held to maturity securities

    - On deposits with financial institutions

    - On securities purchased under resale agreements

    - On money at call

    7
    Profit Analysis

    Gross Profit is decreased by 3% in 2017.

    In 2017: 43,540,186

    In 2016: 44,846,750

    Change: 1,306,564

    Percentage decrease: (1,306,564 / 44,846,750) * 100 = 3%

    Net Profit is decreased by 0.45% in 2017.

    In 2017: 21,963,146

    In 2016: 22,062,988

    Change: 99,842

    Percentage decrease: (99,842 / 22,062,988) * 100 = 0.45%

    Reasons:

    - Securities sold under repurchase agreement.


    - Other short term borrowings.
    - Discount, commission and brokerage.

    8
    Reserved Account Analysis

    Reserves are increased by 33% in 2017.

    In 2017: 70,866,473

    In 2016: 53,346,861

    Change: 17,519,612

    Percentage decrease: (17,519,612 / 53,346,861) * 100 = 33%

    Reasons:

    - Share premium
    - Non - distributable capital reserve - gain on bargain purchase option
    - Exchange translation reserve
    - Statutory reserve
    - General reserve

    9
    Dividend Analysis

    Total Dividend is increased by 56% in 2017.

    In 2017: 49,064,766

    In 2016: 31,449,645

    Change: 17,615,121

    Percentage Increase: (17,615,121 / 31,449,645) * 100 = 56%

    10
    Dividend per Share Analysis

    Dividend per share is increased by 62.37% in 2017.

    In 2017:

    Dividend per share = Total dividend / No. of shares

    = 49,064,766/420,154,982.9

    = 0.11677777

    = 11.6%

    In 2016:

    Dividend per share = Total dividend / No. of shares

    = 31,449,645/437,288,422.16*100

    = 0.07191968

    = 7.19%

    Change: 0.04485802

    Percentage Increase: (0.04485802 / 0.07191968) * 100 = 62.37%

    11
    Earnings per Share Analysis

    Earnings per share are decreased by 3.4% in 2017.

    In 2017:

    Earnings per share = (net income - dividend) / shares

    =19.13

    In 2016: 19.82

    Change: - 0.69

    Percentage Increase: (- 0.69 / 19.82) * 100 = - 3.4%

    12
    Profit Margin Ratio Analysis

    Profit margin ratio = Net profit / Net sales

    = 21963146 / 74090972

    = 29.6%

    13
    Assets Analysis

    Assets are increased by 27.56% in 2017.

    In 2017: 1,373,430,450

    In 2016: 1,076,690,236

    Change: 296,740,214

    Percentage Increase: (296,740,214 / 1,076,690,236) * 100 = 27.56%

    Reasons:

    - Balances with other banks


    - Lendings to financial institutions
    - Investments
    - Advances
    - Operating fixed assets

    14
    Liabilities Analysis

    Liabilities are increased by 30.74% in 2017.

    In 2017: 1,216,887,369

    In 2016: 930,730,166

    Change: 286,157,203

    Percentage Increase: (286,157,203 / 930,730,166) * 100 = 30.74%

    Reasons:

    - Bills payable
    - Borrowings
    - Deposits and other accounts
    - Other liabilities

    15
    Horizontal Analysis of Assets, Liabilities and
    Equity

    Comparison of two or more year's financial data is known as horizontal


    analysis, or trend analysis.

    It is used to show changes between years in both Rupees and percentage


    form.

    16
    17
    Liabilities to Assets Ratio

    2017 2016

    Assets 1,373,430,450 1,076,690,236

    Liabilities 1,216,887,369 930,730,166

    Ratio 88.60% 86.44%

    18
    Capital Ratio

    Capital is decreased by 2.16% in 2017.

    In 2017:

    Capital = (Total equity / Total assets) * 100

    = (156,543,081 / 1,373,430,450) *100

    = 11.39%

    In 2016:

    Capital = (Total equity / Total assets) * 100

    = (145,960,070 / 1,076,690,236) *100

    = 13.55%

    19
    References

    https://www.mcb.com.pk/assets/MCB_Annual_Report_2017.pdf

    20

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