Profitability
MCB is Pakistan’s fourth largest bank by assets having an asset base of USD 7 Billion as at Q1, 2012, and the largest by market capitalization having a market capitalization recorded at USD 1.2 billion at year end 2011 which was comparatively lower than USD 1.8 billion the year before, mainly on account of lower market value.
The Bank has a customer base of approximately 4 million and a nationwide distribution network of 1,165 branches including 22 Islamic banking branches (December 31, 2011) within Pakistan and 8) branches outside the country (December 31, 2011 including the Karachi Export Processing Zone Branch), and over 650 ATMs in 110 cities, in a market with a population of over 190 million. In 2011, MCB reported a profit after tax of PKR 19.4 billion (appx.USD 205 million) and generated a return on average equity of 26.23% and a return on assets of 3.18% (2010: 3.13%) The Bank’s asset quality is strong with a gross NPL ratio of 8.64%. During the last twodecades, the Bank has concentrated on growth through improving service quality, investment in technology and people, utilizing its extensive branch network, developing a large and stable deposit base and managing its non-performing loans via improved risk management processes.
MCB has 1165 branches (December 31, 2011) including local branches, and business establishments in SriLanka and Bahrain including newly established Rep. Office in Dubai, UAE. The Bank has also formed a private company in Hong Kong (fully owned subsidiary of MCB) in partnership with Standard Chartered Bank, handling trade transactions of select countries in the Asia-Pacific region. MCB has been successful in turning around its operations since its privatization and is moving forward to set high performance standards with the continuous support of its customers and leadership in banking technology. To further strengthen its financial services base, MCB has also incorporated an Asset Management Company in the year 2005 known as MCB Asset Management Company. MCB has also incorporated a leasing company in Azerbaijan in 2009.
Fully Owned Subsidiaries of MCB are: • Muslim Commercial Financial Services (Private) Limited • MNET Services (Private) Limited • MCB Trade Services Limited • MCB Asset Management Company Limited • MCB leasing (Closed Joint Stock Company) The Bank has achieved this success, especially in the last few years, through consolidating corporate banking operations, strengthening retail banking, launching diversified and innovative products, giving more focus to consumer financing and investing in IT.
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