Transcript Furqana Kousar

Student Name
Student ID
MBA
Finance
Finance (FINI-619)
Internship report
MCB Bank Thanil Fatohi
Branch(1177)
Brief Introduction of the Organization
It was established under the Indian companies act V11
as limited company by adamjee group on 9th of July
1947
In 1974 it was nationalized during the government of
Mr. Zulfiqar Ali Bhutto.
In 1991Nishat group purchase this bank and it was the
first bank which was privatize.
It is awarded as the “Best Bank in Pakistan” in 2001,
2003, 2004 and 2005.
The 2nd largest bank with deposit base Rs 431 billion
and assets Rs 570 billion.
Listen on London Stock Exchange.
Head office is located in Karachi.
Business volume
Particulars 2012(In millions)
Total Assets
765,899
Total Liabilities
664,148
Total Sales
68,356
Shareholder Equity
88,157
Profit before tax
32,054
Profit After Tax
20,941
Total income
50,009
Earning Per Share
22.77
Deposits
545,061
Advances
239,583
Investments
402,069
Authorized Capital
10,000
Paid up/ share capital
9,199
Bonus share
920
Main Rivals of MCB
United Bank Limited
Allied Bank Limited
Bank al Habib Limited
Bank al Falah Limited
Askari Bank
Faysal Bank
Bolan Bank Limited
Soneri Bank Limited
Atlas Bank Limited
Indus Bank Limited
Meezan Bank Limited
Bank Islami
The Bank of Punjab
Training Program (Duties performed)
Starting Date: 16th of Dec. 2013
Ending Date: 24th of Jan. 2014
Account opening, fill the account opening form
Deposits, fill the deposit slips
Demand draft and its working
Cash and bills, pay and receive the amount for
accounts and also fill the scrolls for collection
of bills.
Learning Experience
Knowledge Gained
I observe the role of manager and know about
management.
Skills Learned:
I learn about customer dealing and filling the
concerned slips.
Attitudes Observed/Values Gained:
I practically know about team work and cooperation.
Most Challenging Task Performed:
The most challenging thing is to understand the
behaviors and perception of different clients.
Ratio Analysis
Ratio
analysis
MCB Bank
Net Profit Margin= (Net profit after taxation / Net
sales) * 100
Net Profit Year 2010
Year 2011
Margin
16,873,175/
19,424,906/
54,821,296*100=30.7 68,146,588
7%
*100
= 30.77 %
= 28.51%
40
30
20
Net Profit
Margin
10
0
2010
2011
2012
Year 2012
20,940,696/
68,356,191
*100
= 30.63%
Ratio
analysis
MCB Bank
Gross
spread
ratio
Year 2010
Gross spread ratio=Net interest margin / Mark-up
earned*100
=6,833,529/
54,821,296*100
=0.67 times*100
=67%
Year 2011
Year 2012
=4,526,314/
68,146,588*100
=0.65 times*100
=65%
40,856,172/
68,356,191
=0.59times*100
=59%
Ratio
analysis
MCB Bank
Spread Ratio = Interest Earned / Interest Expense
Spread
ratio
Year 2010
54,821,296 /
17,987,767
= 3.04 times
Year 2011
68,146,588/
23,620,274
=2.88 times
Year 2012
68,356,191/
27,500,019
=2.48 times
Ratio
analysis
MCB Bank
Non Interest
Income to
Total
Income
Ratio
Year 2010
Non Interest Income to Total Income Ratio = Non interest
income / total income*100
Year 2011
Year 2012
=6,265,306/
=8,112,191/
=9,153,331/
61,086,602*10 76,258,779*1 77,509,522*100
0 =10.25%
00
=11.8%
=10.63%
Ratio
analysis
MCB Bank
Return on Assets= Net income after tax/Average Total
Assets*100
Return on
Assets
(ROA)
Year 2010
=16,873,175/
538,388,170*100
=3.13%
Year 2011
Year 2012
=19,424,906/
=20,940,696/
610,392,918*100 709,566,107*10
=3.18%
0
=2.95%
Ratio
analysis
MCB Bank
Du Pont
Return on
Assets
Ratio
Year 2010
Du Pont Return on Assets= (Net income /sales)
*(sales/Average total assets)*100
=16,873,175/
538,388,170*100
=3.13%
Year 2011
Year 2012
19,424,906/
610,392,918 *100
=3.18%
=20,940,696/
709,566,107*100
=2.95%
Ratio
analysis
MCB Bank
Return on
Equity
(ROE)
Year 2010
Return on Equity (ROE) =Net income after tax/stockholder
equity*100
=16,873,175/
69,180,011
=0.243*100
=24.39%
Year 2011
Year 2012
=19,424,906/
78,915,003
=0.246*100
=24.61%
=20,940,696 /
88,156,909
=0.237*100
=23.75%
Ratio
analysis
MCB Bank
Debt Ratio = Total debt/Total Assets
Debt Ratio Year 2010
=488,348,404/
567,552,613*100
=0.86 *100 =86%
Year 2011
Year 2012
564,430,741/
653,233,223*100
=0.86 *100
=86%
=664,148,186/
765,898,992*10
0
=0.86*100
=86%
Ratio
analysis
MCB Bank
Debt to
Equity
Ratio
Year 2010
Debt / Equity Ratio= Total Debt/Total equity
=488,348,404 /
69,180,011
=7.06 times
Year 2011
= 564,430,741/
78,915,003
=7.15 times
Year 2012
= 664,148,186/
88,156,909
=7.53times
Ratio
analysis
MCB Bank
Times
Interest
Earned
Ratio
Year 2010
Times Interest Earned Ratio =Earnings before interest
and tax (EBIT)/interest expenses
=44,240,842/
17,987,767
=2.46times
Year 2011
=55,103,453/
23, 620, 274
=2.33times
Year 2012
=59,553,763/
27,500,019
=2.16 times
Ratio
analysis
MCB Bank
Advances /
Deposits
Ratio
Year 2010
Advances / Deposits Ratio= Loans/deposits
=254551,589/
431,371,937
=0.59 times
Year 2011
=227,580,139/
491,188,710
=0.46 times
Year 2012
=239,583,320/
545,060,728
=0.44 times
Ratio
analysis
MCB Bank
Operating Cash Flow Ratio=operating cash
Flow/current liabilities
Operating
Cash Flow
Ratio
Year 2010
=58,701,161/
274,715,687
=0.21 times
Year 2011
=124,459,950/
550,726,395
=0.22times
Year 2012
=96,700,952/
647,937,421
=0.14 times
Ratio
analysis
MCB Bank
Dividend
per Share
Year 2010
Dividend per Share=Dividend amount/No of equity shares
= 8,880,716/
760,215
=11.68Rs
Year 2011
=9,806,772/
836,236
=11.72Rs
Year 2012
=11,707,312/
919860
=12.72Rs
Ratio
analysis
MCB Bank
Earnings
per Share
Year 2010
Earnings per Share =Net income/No of outstanding share
=16,873,175/
760,215
=22.19Rs
Year 2011
=19,424,906/
836,236
=23.22Rs
Year 2012
=20,940,696/
919860
=22.76Rs
Ratio analysis
MCB Bank
Price/Earning Ratio =Price per share/Earning per share
Price/Earning Year 2010
Ratio
=228.54/
22.19526
=10.29 times
Year 2011
=134.60/
23.22896
=5.79 times
Year 2012
=209.76/
22.76508
=9.21 times
Conclusion
Bank should rely more on the interest
income rather than non interest income
Bank has to pays its shareholders
dividend from its income as it is capable
of doing this
The ratios of the bank show profitability
and smooth running of successful
business
Recommendations for Improvement
(According to learning experience)
MCB should focus more on quality of customer
services in this era of competition.
There is a need to improve the customer and employee
relationship.
Bank must focus on the application of new and updated
technology and train their employees side by side.
There must be a concept of job rotation so that each
employee must be able to perform every activity.
Internal control should be more strengthened so that
the performance of organizations increases.
Recommendations for Improvement
(According to Ratio analysis)
Net profit margin decrease in 2011 but in 2012 it
shows increasing trend but there is need to
increase the profit margin by minimizing the cost.
There is a need to increase the interest income.
Non interest income is not the guarantee of
financial health of any business.
Bank must not rely on its own asset instead it
takes fewer loans to lessen the interest income.
Return on equity is also shows diminishing trend
in 2012 it shows that expenses are more.
Try to reduce the interest expenses and attract
more customers to increase the income of bank.
THANK YOU