MCB BANK LIMITED MCB Bank Limited
Corporate Briefing Session
December 20, 2023
Presented by:
Hammad Khalid
Chief Financial Officer
MCB - At a Glance
Branches | Global Presence |
Domestic : 1431 | 7 International |
branches in | |
EPZ : 01 | |
3 Countries | |
DepositsAdvances
Market Share | Market Share |
6.07 % of Domestic | 5.18 % of Domestic |
Industry deposits | Industry advances |
Customers
Over 8.6 million customer accounts
Home Remittance
Market Share
12.3%
ADCs
Over 1475 ATMs
Over 1 Million MCB Live users
Trade
Market Share
8.02%
Credit Rating
Long Term
AAA
Dividend
One of the Highest dividend per share in Banking industry
Branch Network
2nd largest branch network on group basis (including MIB branches)
Market
Capitalization
One of the highest
market cap. in
Banking industry
MCBLive - Banking at your fingertips
Key Highlights
Total Registered
Users
1 M
179% Growth
(Sept'23 vs Sept'22)
80% Growth
(Sept'23 vs Sept'22)
Jan'23 to Sep'23
Transaction
Vol.
PKR 808BN
MCB Bank Limited
Financial Performance
Third Quarter ended September 30, 2023
Performance Highlights - September 30,2023
Pakistan's Outlook
- Politics; Smooth shift of democratic power remains the key;
- Macroeconomic outlook;
- GDP growth expected to improve ranging between 1.7% - 2.5%;
- Fiscal Deficit expected to remain high at 7.7% of GDP;
- Inflation to soften to 23.6%; Monetary easing anticipated in CY 2024;
- Current Account Deficit expected at 1.4% of GDP;
- Currency devaluation to remain range bound due to administrative steps; lower imports and IMF program continuation;
- Gross External Financing Requirement; IMF funding continuity is a must;
- Improved Tax Collection; Target gets steeper for CY 2024.
Historic growth in Key Numbers
- Building no cost deposits, leading to a robust growth of Rs. 190 billion (YoY: +30%) in average current deposits
- 73% NIM growth; fueled by growth in no cost liability;
- Cost to Income Ratio improved to 28.96% on account of 58% increase in total income;
- 71% Increase in Standalone PBT to PKR 88.1 billion i.e. highest ever PBT for the nine months period;
- Consolidated PBT of PKR 96.9 billion - 2nd Highest in the Industry;
- Ex-NIBrelated recovery for the period ended Sep-23 sums to Rs. 932 M;
- Home remittance market share improved to 12.3% (Sep-22 : 11.4%).
71% increase in PBT
PBT | PKR 88.1 Billion | +71% YoY |
PAT | PKR 44.1 Billion | +122% YoY |
NIM | PKR 106.4 Billion | +73% YoY |
NFI | PKR 22.6 Billion | +12% YoY |
Deposits | PKR 1.7 Trillion | +24% YTD |
Investments PKR 1.3 Trillion | +29% YTD |
Sound Balance Sheet footing
PKR in Billions | ||||
Sep 2023 | Dec 2022 | Var. | % var. | |
ASSETS | 2,390.77 | 2,085.36 | 305.42 | 14.65% |
Advances - net | 601.01 | 753.40 | (152.39) | -20.23% |
- Gross Advances | 646.24 | 797.57 | (151.33) | -18.97% |
Investments | 1,257.68 | 978.73 | 278.94 | 28.50% |
Cash and Balances with Banks | 201.93 | 121.24 | 80.69 | 66.55% |
Lending to Financial Institutions | 91.52 | 50.42 | 41.11 | 81.54% |
Other Assets (including fixed assets & DTA) | 238.63 | 181.57 | 57.07 | 31.43% |
LIABILITIES | 2,177.09 | 1,895.86 | 281.23 | 14.83% |
Deposits | 1,715.67 | 1,378.72 | 336.95 | 24.44% |
Current | 845.30 | 680.11 | 165.19 | 24.29% |
Savings | 813.26 | 642.44 | 170.82 | 26.59% |
Term | 57.11 | 56.17 | 0.94 | 1.68% |
Borrowings | 289.27 | 340.24 | (50.97) | -14.98% |
Bills Payable | 10.07 | 39.14 | (29.07) | -74.28% |
Other Liabilities | 162.09 | 137.77 | 24.32 | 17.65% |
NET ASSETS | 213.68 | 189.49 | 24.19 | 12.76% |
EQUITY | 198.86 | 170.85 | 28.01 | 16.39% |
Advances Portfolio:
- Gross advances of the Bank decreased by Rs. 151 billion (-19%);
- Corporate lending book decreased by Rs. 133.4 billion (-22%) whereas the Retail loan portfolio decreased by Rs. 18 billion (-21%);
- Coverage & Infection ratios of the Bank were reported at 82.86% and 8.45% respectively.
Investment Portfolio:
- PKR 125 billion added to Floating PIBs portfolio closing at PKR 653.4 billion;
- PKR 76.7 billion decreased to Fixed PIBs closing at PKR 212.7 billion;
- TBs increased by PKR 211.4 billion to PKR 343 billion;
- Yield on Investment increased to 17.66% in Sep-23 as compared to 11.83% in Sep-22;
- PIBs - AFS & HTM excluding floating - WA time to maturity of PIBs is 2.43 years.
Strong Current Deposit Mobilization:
- Business initiatives , customer engagements and focus on building no cost deposits reflected on the unprecedented increase of 24% YTD in current deposits base;
- Growth of Rs. 165 Billion in absolute terms in current deposits;
- Current to Total Deposits Ratio at 49% (Dec-22 : 49%)
- CoD for Sep-23 works out 8.19% (Sep-22 - 5.94%) on account of sharp increase in policy rate;
- CASA further improved from 95.93% at Dec-22 to 96.67%.
Advances & NPLs
Gross Advances (CAGR 4.03%)
Segmentwise Advances
PKR in Billions | ||||
Sep 2023 | Dec 2022 | Var. | % var. | |
Advances (gross) | 646 | 798 | (151) | -19% |
Retail | 69 | 88 | (18) | -21% |
Corporate | 473 | 606 | (133) | -22% |
Consumer | 40 | 43 | (3) | -8% |
Overseas | 32 | 29 | 4 | 12% |
Others | 32 | 32 | (0) | 0% |
MCB Advances (domestic) | 614 | 769 | (155) | -20.14% |
Industry Advances (domestic) | 11,857 | 11,913 | (56) | -0.47% |
Market Share | 5.18% | 6.46% |
PKR in Billions | ||
547 | 540 | 636 |
514
Dec-18Dec-19Dec-20Dec-21
Sep-2317.70%
Sep-2210.55%
798
Dec-22
646
Sep-23
Advances - Net | 601 | 753 | (152) | -20% | ||||||
PKR in Millions | ||||||||||
Non-Performing Advances | ||||||||||
Sep 23 | Dec 22 | Var. | % | |||||||
Total NPLs | 54,580 | 51,260 | 3,320 | 6% | ||||||
OAEM | 1,438 | 1,465 | -27 | -2% | ||||||
Substandard | 532 | 126 | 406 | 322% | ||||||
Doubtful | 1,173 | 568 | 605 | 106% | ||||||
Loss | 51,438 | 49,100 | 2,338 | 5% |
Recovery from NIB NPL Stock
PKR in Millions
2,467
1,394 1,192 1,273 1,215 932
Dec-18Dec-19Dec-20Dec-21Dec-22Sep-23
Total Recoveries related to NPL stock transferred from NIB Bank amounts to Rs. 9.45 billion.
Diversified Investment Portfolio
PKR in Billions
Composition of Investments
Sep 2023 | Dec 2022 | |
T-Bills | 26% | 13% |
PIBs | 66% | 80% |
Equity securities | 4% | 4% |
Other Government Securities | 3% | 2% |
Debt instruments | 1% | 1% |
Pakistan Investment Bonds
PKR in Billions
450 | 461 | 559 | 528 | 540 | 555 | 653 | |||
424 | |||||||||
236 | 266 | 286 | 284 | 289 | 291 | 292 | 213 | ||
Dec-21Mar-22 | Jun-22 | Sep-22 | Dec-22Mar-23Jun-23Sep-23 | ||||||
Fixed | Floating | ||||||||
PKR 165 billion added in Current Deposits ; +24%
Total Deposits
PKR 1.72 trillion
CoD
8.19%
Up by 225 bps YoY
Branches
1,431
domestic
+(EPZ:1)
Current Deposits
PKR 845 billion
CASA
96.67%
Dec-22 : 95.93%
Branches
7
International
Saving Deposits
PKR 813 billion
Market Share (Domestic)
6.07%
Dec-22 : 5.87%
Customer Base
Over 8.6 million
Total Deposits (CAGR : 10.46%)
PKR in Billions
1,049 | 1,145 | 1,290 | 1,412 | 1,379 | 1,716 | |||||
Dec-18 | Dec-19 | Dec-20 | Dec-21 | Dec-22 | Sep-23 | |||||
Current Deposits (CAGR : 15.07%)
PKR in Billions
563 | 680 | 845 | |||||
402 | 425 | 489 | |||||
Dec-18 | Dec-19 | Dec-20 | Dec-21 | Dec-22 | Sep-23 | ||
Deposits Mix | Deposits Mix | ||||||
Dec-22 | 4% | Sep-23 | 3% | ||||
47% | 49% | 48% | 49% |
Impressive YoY increase in PBT i.e. 71%
PKR in Billions
Sep 2023 | Sep 2022 | Var. | % var. |
Mark-up Income | 235.38 | 141.03 | 94.35 | 67% |
Mark-up Expense | 128.96 | 79.52 | 49.45 | 62% |
Net Mark-up Income | 106.42 | 61.51 | 44.91 | 73% |
Non Interest Income | 22.60 | 20.25 | 2.35 | 12% |
Total Income | 129.02 | 81.76 | 47.25 | 58% |
Non Mark-up Expense | 39.68 | 31.49 | 8.19 | 26% |
Operating expenses | 37.37 | 30.30 | 7.07 | 23% |
other charges & WWF | 2.32 | 1.19 | 1.12 | 94% |
Profit before Provisions | 89.33 | 50.27 | 39.06 | 78% |
Provisions | 1.24 | (1.32) | 2.55 | 194% |
against Investments | 1.74 | 0.63 | 1.11 | 176% |
against loans & advances | (0.44) | (1.88) | 1.45 | 77% |
Others including write off recovery | (0.07) | (0.07) | (0.01) | -8% |
Profit before Tax | 88.10 | 51.59 | 36.51 | 71% |
Taxation | 43.95 | 31.73 | 12.21 | 38% |
Profit after Tax | 44.15 | 19.85 | 24.29 | 122% |
Exceptional performance in Core Earnings:
- Strong volumetric growth in current account and timely repositioning of the asset book, net interest income is increased by 73%;
- Non-markupincome increased to Rs. 22.6 billion (+12%) with major contributions coming in from fee commission income (Rs. 14.2 billion), income from dealing in foreign currency (Rs. 5.9 billion) and dividend income (Rs. 2 billion).
- Improved customer and interbank flows, diversification of revenue streams through continuous enrichment of service suite, investments towards digital transformation and an unrelenting focus on upholding high standards of service delivery supplemented a broad-based growth of 38% in income from fee commission while trade and guarantee related business income grew by 95%, cards related income by 48% and income from home remittance by 18%.
- Amidst a persistently high inflationary environment, impact of sharp currency devaluation, rapidly escalating commodity prices and continued investments in human resources and technological upgradation, the operating expenses of the Bank were reported at Rs. 37.4 billion (+23%).
- Profit for overseas operations increased by 170%YoY to PKR 4.3 Billion (USD 15.2 million)
- Highest ever PBT of Rs. 88.1 billion (+71%) while PAT registered a growth of 122%.
Profitability Ratios:
- RoE 31.84% (Dec-22:19.78%) and RoA 2.63% (Dec-22:1.61%), healthy profitability ratios;
- Cost to Income ratio significantly improved to 28.96% as compared to 37.06% in corresponding period last year.
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MCB Bank Ltd. published this content on 19 December 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 December 2023 04:41:05 UTC.
