MCB Bank Limited

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MCB Bank Limited
Traded asPSXMCB
IndustryBanking
Capital Markets
Commercial Banking
Corporate Banking
Investment Banking
Treasury Services
Founded1947
Headquarters,
Key people
Husnain Ijaz (Chairman)
ProductsLoans, credit cards, savings, consumer banking, Home Remittance etc.
RevenueIncrease66.43 billion (US$630 million) - 2015[1]
Increase25.55 billion (US$240 million) - 2015[1]
Websitewww.mcb.com.pk
MCB Office (MCB Tower) in Karachi, Pakistan.

MCB Bank Limited (formerly Muslim Commercial Bank) 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 consortium of Pakistani corporate groups led by Nishat Group. As of June 2008, the Nishat Group owns a majority stake in the bank. 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.

AZEE[edit]

Profitability[edit]

Business strategy[edit]

The bank has also established an Islamic Banking unit to offer Shariah compliant products and services, with dedicated Islamic banking branches in six cities.

The Wholesale Banking Group caters to local and multinational companies.[citation needed]

Areas such as Bancassurance set newer records as well by crossing the Rupees 1 billion benchmark in 2011.[citation needed] Islamic Banking outperformed in terms of improved profitability and volumes with introduction of additional 11 products and expansion with 8 new branches in 2011 and Privilege Banking, an elite setup, is a benchmark in the industry.[citation needed] They have nine branches across major cities.

Information technology[edit]

MCB’s name is synonymous with ATM facility in the country[citation needed] as the bank has been a pioneer in introducing 24-hour cash withdrawal facility and on-screen transactions. MCB ATM/Debit Card, with its collaboration with VISA, can be used globally.

MCB and Maybank[edit]

In 2005, the management of the bank abbreviated its name from Muslim Commercial Bank Limited to MCB Bank Limited to explore international markets; they were facing resistance due to the word Muslim especially from Western Countries to avail license. In 2008 the head office of MCB was shifted from Karachi to Lahore in a newly constructed building, namely MCB House located at Sharea Ghous-ul-Azam, commonly known as Jail Road.

MCB, advised by Merrill Lynch, became the fourth Pakistani Company (the other three being Hubco, PTCL and Chakwal cement - they all have been delisted) to list on the London Stock Exchange when it raised US$150 million global depositary receipts.

In May 2008, Malaysian bank, Maybank and MCB signed an agreement, whereby Maybank acquired 20% of the ordinary shares in MCB from Nishat Group. The acquisition is in-line with Maybank’s strategy, as Malaysia’s financial services leader in the region, to build its presence in key growth markets across the region. It also paves the way for MCB, one of Pakistan’s premier financial services groups, to engage Maybank as its exclusive foreign commercial bank strategic partner.[citation needed]

Maybank initially acquired from Nishat Group 94,241,527 ordinary shares in MCB, representing a 15% stake in the Bank, for a cash price of PKR470 per share. The total consideration paid was approximately US$686 million. The purchase price represented an 11.4% premium to MCB’s closing share price of PKR 422 on May 2, 2008, and a premium of 12.9% to the average closing share price for MCB over the 30 trading days immediately preceding the date of this announcement.

Based on MCB’s December 31, 2007 audited book value, the purchase price represents an implied price to book value multiple of 5.13x, a price to 2007 earnings multiple of 18.0x and a price to 2008 earnings multiple of 15.2x. In July 2008 Maybank exercised its right to increase its stake to 20%.

The stake in MCB allows Maybank the right to appoint two Directors to represent its interest on the Board of MCB. One of these Directors was to be appointed immediately and the second Director will be appointed upon completion of the term of the existing Board, scheduled to be on March 27, 2009.

As part of the transaction, Maybank and MCB are also expected to enter into a business cooperation arrangement which will include, among others, Islamic banking, retail banking, credit cards, asset management and SME banking. Maybank and MCB are also expected to benefit from increased business ties and trade flows between Pakistan and Malaysia

See also[edit]

Notes[edit]

  1. ^ a b "MCB Annual Report 2015" (PDF). MCB.com.pk. Retrieved 10 April 2016.

References[edit]

External links[edit]