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BALANCE SHEET OF MCB

2007 2008 2009


Assets
Cash and balances with treasury 39,683,883 39,631,172 38,774,871
banks
Balances with other banks 3,807,519 4,043,100 6,009,993
Lending to financial intuitions 1,051,372 4,100,079 3,000,000

Investments 113,089,261 96,631,874 167,134,465


Advances 218,960,598 262,135,470 253,249,407
Operating fixed assets 16,024,123 17,263,733 18,014,896
Deferred tax assets – – –
Other assets 17,868,761 19,810,476 23,040,095

410,485,517 443,615,904 509,223,727


Liabilities
Bills payable 10,479,058 10,551,468 8,201,090
Borrowings 39,406,831 22,663,840 44,662,088
Deposits and Other accounts 292,098,066 330,181,624 367,604,711
Sub-ordinate loans 479,232 – –
Liabilities against assets subject - – –
to finance lease
Deferred tax liabilities 1,180,162 437,137 3,196,743
Other liabilities 11,722,493 21,345,781 15,819,082
355,365,842 385,179,850 439,483,714
Net assets 55,119,675 58,436,054 69,740,013
Represented by:
Share capital 6,282,768 6,282,768 6,911,045
Reserves 34,000,638 36,768,765 38,385,760
Unappropriateed profit 5,130,750 9,193,332 15,779,127

45,414,156 52,244,865 61,075,932


Surplus on revaluation of assets 9,705,519 6,191,189 21
8,664,081

55,119,675 58,436,054 69,740,013


INCOME STATEMENT
2007 2008 2009

Markup/ return/ interest earned 31,786,595 40,043,824 51,616,007


Mark up/ return/ interest expense 7,865,533 11,560,740 15,841,463
Net mark up/ interest income 23,921,062 28,483,084 35,774,544

- Provision for dimininution in the value of 105,269 2,683,994 1,484,218


investment
- Provision against loans and advances 2,959,583 1,335,127 5,796,527
- Bad debts written off directly 199 – 41,576
3,065,051 4,019,121 7,322,321

Net mark up/interest income after provisions 20,856,011 24,463,963 28,452,223

Non mark up/interest income

Fee, commission and brokerage income 2,634,610 2,953,394 3,331,856


Dividend income 632,300 617,554 459,741
Income from dealing in foreign currencies 693,408 727,564 341,402
Gain on investment 1,500,865 740,429 773,768
Unrealized loss on revaluation of investments (13,105) (103,198) –
classified as held for trading
Other income 563,213 855,697 736,118

Total non mark up interest income 6,011,291 5,791,440 5,642,885

Income after interest income 26,867,302 30,255,403 34,095,108

Non mark up/interest expense


- Administrative expenses 5,022,416 7,546,878 10,107,189
- Other proposition/write off (3,743) 23,135 142,824
-Other charges 540,594 817,824 690,150

Total non mark up/ interest expense 5,559,267 8,387,837 10,940,163

Extra ordinary/unusual items – – –


Profit before taxation 21,308,035 21,867,566 23,154,945
Taxation-Current year 6,442,356 7,341,257 7,703,305
-Prior years (1,294,473) (864,824) (2,232,226)
-Defferd 894,590 16,533 2,188,569
6,042,473 6,492,966 7,659,648
Profit after taxation 15,265,562 15,374,600 15,495,297
Unappropriate profit brought forward 5,530,973 5,130,750 9,193,332

Transfer from surplus on revaluation of fixed 11,855 21,319 22,324


assets

5,542,828 5,152,069 9,215,656

Profit available for appropriation 20,808,390 20,526,669 24,710,953


Basic/diluted earning per share 24.30 22.25 22.42
Common Size Analysis:

Vertical Analysis of Balance Sheet (From 2007 to 2009)

Analysis
2007 2008 2009 2007 2008 2009
Assets
Cash and balances 39,683,883 39,631,172 38,774,871 10% 9% 8%
with treasury banks
Balances with other 3,807,519 4,043,100 6,009,993 1% 1% 1%
banks
Lending to financial 1,051,372 4,100,079 3,000,000 0% 1% 1%
intuitions
Investments 113,089,261 96,631,874 167,134,465 28% 22% 33%
Advances 218,960,598 262,135,470 253,249,407 53% 59% 50%
Operating fixed assets 16,024,123 17,263,733 18,014,896 4% 4% 4%
Deferred tax assets – – – – – –
Other assets 17,868,761 19,810,476 23,040,095 4% 4% 5%

410,485,517 443,615,904 509,223,727 100% 100% 100%


Liabilities
Bills payable 10,479,058 10,551,468 8,201,090 3% 2% 2%
Borrowings 39,406,831 22,663,840 44,662,088 10% 5% 9%
Deposits and Other 292,098,066 330,181,624 367,604,711 71% 74% 72%
accounts
Sub-ordinate loans 479,232 – – 0% – –
Liabilities against – – – – – –
assets subject to
finance lease
Deferred tax liabilities 1,180,162 437,137 3,196,743 0% 0% 1%
Other liabilities 11,722,493 21,345,781 15,819,082 3% 5% 3%
355,365,842 385,179,850 439,483,714 87% 87% 86%
Net assets 55,119,675 58,436,054 69,740,013 13% 13% 14%
Represented by:
Share capital 6,282,768 6,282,768 6,911,045 2% 1% 1%
Reserves 34,000,638 36,768,765 38,385,760 8% 8% 8%
Unappropriateed profit 5,130,750 9,193,332 15,779,127 1% 2% 3%
Surplus on revaluation 9,705,519 6,191,189 8,664,081 2% 1% 2%
of assets

55,119,675 58,436,054 69,740,013 13% 13% 14%


Vertical Analysis of Income Statement:

Analysis
2007 2008 2009 2007 2008 2009

Markup/ return/ 31,786,595 40,043,824 51,616,007 84% 87% 90%


interest earned
Mark up/ return/ (7,865,533) (11,560,740) (15,841,463) -21% -25% -28%
interest expense
Net mark up/ 23,921,062 28,483,084 35,774,544 63% 62% 62%
interest income
Provision for bad (3,061,308) (4,042,256) (7,465,145) -8% -9% -13%
debts
Net mark up/ 20,859,754 24,440,828 28,309,399 55% 53% 49%
interest income
after provision
Total non mark up 6,011,291 5,791,440 5,642,885 17% 13% 10%
interest income
Non mark up/interest (5,563,010) (8,364,252) (10,797,339) -16% -18% -19%
expense
Profit Before 21,308,035 21,868,016 23,154,945 56% 48% 40%
Taxation
Taxation (6,042,473) (6,492,966) (7,659,648) -16 -14% -13%
Profit after taxation 15,265,562 15,374,600 15,495,297 40% 34% 27%

COMMENTS

Vertical analysis of Balance Sheet:

■ Cash is constantly decreasing from year 2007 to 2009; it shows that the liquidity position of
the bank is going to be weak, so it is alarming sign for the bank. Therefore bank should take
necessary steps according to the position.

■ The with the other is constant form 2007 to 2009.

■ Increase in money at call and short notice, it means that customers of bank are very punctual in
making payments. Therefore it is good sign for the bank.

■ In the field of investment there is increasing trend with the passage of time. It is common term
of finance” more investment more return.
■ As we know that main source of profit of a bank is the difference between the percentages of
interest, Banks pay less rate of interest than receiving the interest from the customers. In this case
advance to customers are high in 2007 & 2008 but it decrease in 2002. It means that MCB is not
running very well.
LIABILITIES

■ There is increasing trend in deposits and other accounts which shows the credibility of the
bank.
■ Borrowing is decreasing in 2008 but there is increasing trend in the year 2009. Although it is
seeing that bank’s borrowing is increasing with the passage of time which is not a good sign but
there is a positive thing in this behalf, usually banks borrow money at that time when they would
have to give it for earning more profit, I think the MCB BANK LTD. doing the same thing for
increasing its profits.

■ Bills payable increase in 2008 & 2009 it is negative sign.

Vertical Analysis of Income Statement:

INCOME
■ Interest earned Increase which is a Positive sign.

■ As we know that banks provide many facilities other than money lending and borrowing.
Banks receive fee, commission etc. for these services. Therefore fee and commission income are
decreasing which is not a favorable signs.

EXPENSES
■ Return on deposit increase which decrease the profit.
■ Administration expenses are increased but no alarming rate.

Trend Analysis:
Horizontal Analysis of Balance sheet:
Analysis
2007 2008 2009 2007 2008 2009
Assets
Cash and balances 39,683,883 39,631,172 38,774,871 100% 99.9% 98%
with treasury banks
Balances with other 3,807,519 4,043,100 6,009,993 100% 106% 158%
banks
Lending to financial 1,051,372 4,100,079 3,000,000 100% 390% 285%
intuitions
Investments 113,089,261 96,631,874 167,134,465 100% 85% 148%
Advances 218,960,598 262,135,470 253,249,407 100% 120% 116%
Operating fixed assets 16,024,123 17,263,733 18,014,896 100% 108% 112%
Deferred tax assets – – – – – –
Other assets 17,868,761 19,810,476 23,040,095 100% 111% 129%

410,485,517 443,615,904 509,223,727 100% 108% 124%


Liabilities
Bills payable 10,479,058 10,551,468 8,201,090 100% 101% 78%
Borrowings 39,406,831 22,663,840 44,662,088 100% 58% 113%
Deposits and Other 292,098,066 330,181,624 367,604,711 100% 113% 126%
accounts
Sub-ordinate loans 479,232 – – – – –
Liabilities against – – – – – –
assets subject to
finance lease
Deferred tax liabilities 1,180,162 437,137 3,196,743 100% 37% 271%
Other liabilities 11,722,493 21,345,781 15,819,082 100% 182% 135%
355,365,842 385,179,850 439,483,714 100% 108% 124%
Net assets 55,119,675 58,436,054 69,740,013 100% 106% 127%
Represented by:
Share capital 6,282,768 6,282,768 6,911,045 100% 100% 110%
Reserves 34,000,638 36,768,765 38,385,760 100% 108% 113%
Unappropriateed profit 5,130,750 9,193,332 15,779,127 100% 179% 308%
Surplus on revaluation 9,705,519 6,191,189 8,664,081 100% 64% 89%
of assets

55,119,675 58,436,054 69,740,013 100% 106% 127%

Horizontal Analysis of Income Statement:


Analysis
2007 2008 2009 2007 2008 2009

Markup/ return/ 31,786,595 40,043,824 51,616,007 100% 126% 162%


interest earned
Mark up/ return/ (7,865,533) (11,560,740) (15,841,463) 100% 147% 201%
interest expense
Net mark up/ interest 23,921,062 28,483,084 35,774,544 100% 119% 150%
income
Provision for bad (3,061,308) (4,042,256) (7,465,145) 100% 132% 244%
debts
Net mark up/ interest 20,859,754 24,440,828 28,309,399 100% 117% 136%
income after
provision
Total non mark up 6,011,291 5,791,440 5,642,885 100% 96% 94%
interest income
Non mark up/interest (5,563,010) (8,364,252) (10,797,339) 100% 150% 194%
expense
Profit Before 21,308,035 21,868,016 23,154,945 100% 103% 109%
Taxation
Taxation 6,042,473 6,492,966 7,659,648 100% 107% 127%
Profit after taxation 15,265,562 15,374,600 15,495,297 100% 101% 102%

Comments on HORIZONTAL ANALYSIS

INCOME
Interest income increase with great proportion with is favorable. It means that interest received
by the bank is increasing with the passage of time. It is not good for a banking company.
As we all know that banks provide many services for their customers and also act as a agent of
the customer. The banks receive fee and commission after their services; it is a main source of
bank to receive fee and commission from their customers. In case bank is taking more fees as
compared to previous years. This is good for the bank.

EXPENSE
Return on deposit decreases which shows good sign and it is due to decrease in return rate.
Admin and diminution and provision against non performing loan increasing turned that is
favorable.
Bad debts increased with huge amount not positive sign.
Profit before taxation has increased but not with greater proportion.
Tax increases which are not bad because it is interrelated with profit, if profit increased, tax also
increase.
RATIOS ANALYSIS:
Current Ratio:

The current ratio measures the number of items of the firm s current assets cover its current
liabilities. The current ratio should be part of your business' basic financial planning,
meaning it should be tracked monthly or quarterly. By keeping a close eye on this figure, you
will recognize if it begins to get out of line. This will allow you to take early action to
prevent your business from ending up in a difficult position.

Current ratio=current asset/ current liabilities

2007

Current asset 376,592,633


Current liabilities 342,463,187
Current ratio 1.10
2008

Current asset 406,541,695


Current liabilities 363,396,932
Current ratio 1.12
200

Current asset 468,168,736


Current liabilities 420,467,889
Current ratio 1.11
Current Ratio

Year 2007 2008 2009


Percentage 1.10 1.12 1.11

Current Ratio
112%

112%
111%

111%
110%

110%

109%
2007 2008 2009 Current Ratio

Quick ratios:

Quick ratio shows a firm’s ability to meets it current liabilities with its current assets
excluding inventories and prepaid expenses, which are least liquid portion of the current
assets. Since banks don’t have any sorts of inventories, therefore only prepaid expenses
are subtracted from the current assets of the bank.
Quick Ratio = Cash + Account Receivable + Marketable Securities/Current Liabilities

2007

Cash + Account Receivable 263,503,372


+Marketable Securities
Current Liabilities 342,463,187
Quick Ratio .77:1
2008

Cash + Account Receivable 309,909,821


+Marketable Securities
Current Liabilities 363,396,932
Quick Ratio .85:1
2009

Cash + Account Receivable 301,034,271


+Marketable Securities
Current Liabilities 420,467,889
Quick Ratio .72:1

Quick Ratio

Year 2007 2008 2009


Ratio .77:1 .85:1 .72:1

Graphical representation:
Quick Ratio
0.85
0.9
0.85 0.77
0.8
0.72 Quick Ratio
0.75
0.7
0.65
2007 2008 2009

Working Capital:

Working capital is the difference between current assets and current liabilities. Working
capital is often considered a measure of liquidity by it self. This ratio shows the amount of
liquidity. Working capital is used to check liquidity of the organization.

Working Capital= Current Assets – Current Liabilities

2007

Current Assets 376,592,633


Current Liabilities 342,463,187
Working Capital 34,129,446
2008

Current Assets 406,541,695


Current Liabilities 363,396,932
Working Capital 43,144,763
2009

Current Assets 468,168,736


Current Liabilities 420,467,889
Working Capital 47,700,847

Working Capital:

Year 2007 2008 2009


Ratio 34,129,446 43,144,763 47,700,847

Graph:

Working Capital
47,700,847
50,000,000 43,144,763
40,000,000 34,129,446

30,000,000
Working Capital
20,000,000

10,000,000

0
2007 2008 2009

Cash Ratio:

Cash and equilent are the most liquid assets. The cash ratio shows the proportion of the
assets held in the most liquid possible form. It is used to check the liquidity of the
organization

Cash Ratio= Cash Equivalents + Marketable Securities/Current Liabilities

2007

Cash Equivalent + 43,491,402


Marketable Securities
Current Liabilities 342,463,187
Cash Ratio 0.13
2008

Cash Equivalent + 43,674,272


Marketable Securities
Current Liabilities 363,396,932
Working Capital 0.12

2009

Cash Equivalent + 44,784,864


Marketable Securities
Current Liabilities 420,467,889
Working Capital 0.11

Cash Ratio

Year 2007 2008 2009


Ratio 0.13 0.12 0.11

Graph:

Cash Ratio

0.13

0.12
Cash Ratio
0.11

0.1
2007 2008 2009
Debt to Equity Ratio:

Debt-to-Equity ratio shows the extent to which debt financing is used relative to
equity financing. Debt equity is calculated by dividing total liabilities of the bank by
the total owner equity.

Debt to equity ratio=Total Liablities / shareholders equity

2007

Total Liabilities 355,365,842


Shareholder Equity 6,282,768
Debt to Equity Ratio 56.56%
2008

Total Liabilities 385,179,850


Shareholder Equity 6,282,768
Debt to Equity Ratio 61.30%

2009

Total Liabilities 439,483,714


Shareholder Equity 6,911,045
Debt to Equity Ratio 64%

Debt to Equity ratio

Year 2007 2008 2009


Ratio 56.56% 61.30% 64%
Graph

Debt to Equity Ratio


66.00%
64.00%
62.00%
60.00%
Debt to Equity
58.00% Ratio
56.00%
54.00%
52.00%
2007 2008 2009

Debt Ratio:

It shows that how much assets have been financed by liabilities and it also shows the
margin of protection available for the creditors.

Debt Ratio: Total Liabilities / Total Assets

2007

Total Liabilities 355,365,842


Total Assets 410,485,517
Debt Ratio 87%
2008

Total Liabilities 385,179,850


Total Assets 443,615,904
Debt Ratio 87%

2009
Total Liabilities 439,483,714
Total Assets 509,223,727
Debt Ratio 86%

Debt ratio

Year 2007 2008 2009


Ratio 87% 87% 86%

Graph:

Debt Ratio
88%
87%
87% Debt Ratio
86%
86%
2007 2008 2009

Return on Investment:

Return on investment measure the ratio of profit generated in relation to the total assets
employed. Net profit after tax divided by total assets gives the return on investment.

ROI= Net Profit after Tax/Average (Long-term Liabilities + Equity)

2007

Net Profit After Tax 15,265,562


Average(Long-term 52,572,491
Liabilities + Equity)
Return On Investment 29%
2008

Net Profit After Tax 15,374,600


Average(Long-term 66,172,297
Liabilities + Equity)
Return On Investment 23.23%

2009

Net Profit After Tax 15,495,297


Average(Long-term 77,059,770
Liabilities + Equity)
Return On Investment 20%

ROI

Year 2007 2008 2009


ROI 29% 23.23% 20%

ROI

ROI
40%
20%
ROI
0%
2007 2008 2009
Interest Coverage Ratio

Interest coverage ratio shows the ability of a firm to cover up its interest charges on the
income before interest and taxes. The ratio is obtained through dividing earning before
interest and taxes (EBIT) of the bank by its interest expenses.

EBIT divided by interest expense

Interest coverage ratio=EBIT/Interest expense

2007

EBIT 21,308,035
Interest Expense 7,865,533
Interest coverage ratio 270%
2008

EBIT 21,867,566
Interest Expense 11,560,740
Interest coverage ratio 189%

2009

EBIT 23,154,945
Interest Expense 15,841,463
Interest coverage ratio 146%

Interest Coverage Ratio

Year 2007 2008 2009


Ratio 270% 189% 146%

Graph:
Interest Coverage Ratio

300%
250%
200%
150% Interest Coverage Ratio
100%
50%
0%
2007 2008 2009

ROA

ROA= Net Profit After Tax/Average Total Assets

2007

Net Profit After Tax 15,265,562


Average Total Assets 376,296,880
Return On Assets 4.1%
2008

Net Profit After Tax 15,374,600


Average Total Assets 427,050,710
Return On Assets 3.6%

2009

Net Profit After Tax 15,495,297


Average Total Assets 476,419,815
Return On Assets 3.3%
ROA

Year 2007 2008 2009


ROI 4.1% 3.6% 3.3%

ROA

5.00%
4.00%
3.00%
ROA
2.00%
1.00%
0.00%
2007 2008 2009

Income/Expense Ratio

Income/Expense Ratio= Total Inocme/Operating Expense

2007

Total Income 29,932,353


Operating Expense 5,563,010
Income/Expense Ratio 5.3 times
2008

Total Income 34,274,524


Operating Expense 8,364,252
Income/Expense Ratio 4.10 Times
2009

Total Income 41,417,429


Operating Expense 10,797,339
Income/Expense Ratio 3.83 Times

Income/Expense Ratio

Year 2007 2008 2009


Income/Expense Ratio 5.3 Times 4.1 Times 3.83 Times

Graph

Income/Expense Ratio
6

4
Income/Expense
2 Ratio

0
2007 2008 2009

Earning Per Share

Earning Per Share=Net Income after Tax/Weighted Average Number of Common


Share Outstanding

2007
Total Income After Tax 15,265,562,000
Weighted Average Number of Common 628,276,843
Share Outstanding
Earning Per Share Rs. 24.30
2008

Total Income After Tax 15,374,600,000


Weighted Average Number of Common 628,276,843
Share Outstanding
Earning Per Share Rs. 24.47

2009

Total Income After Tax 15,495,297,000


Weighted Average Number of Common 691,104,527
Share Outstanding
Earning Per Share Rs. 22.42

Earning Per Share

Year 2007 2008 2009


Earning Per Share Rs. 24.30 Rs. 24.47 Rs. 22.42
Earning Per Share
25

24

23 Earning Per Share


22

21
2007 2008 2009

Price/Earning Ratio:

Price/Earning Ratio=Market Price per Share/Diluted Earning Per share

2007

Market Price per Share 399.95


Diluted Earning Per share 24.30
Price/Earning Ratio 16.5 Times
2008

Market Price per Share 125.81


Diluted Earning Per share 22.25
Price/Earning Ratio 5.65 Times

2009

Market Price per Share 219.68


Diluted Earning Per share 22.42
Price/Earning Ratio 9.8 Times
Earning Per Share

Year 2007 2008 2009


Earning Per Share 16.5 Times 5.65 Times 9.8 Times

Price/Earning Ratio
20

15

10
Price/Earning Ratio
5

0
2007 2008 2009

Dividend Payout Ratio

Dividend Payout Ratio= Dividend per Common Share/ Diluted Earning Per Share

2007

Dividend per Common Share 12.50


Diluted Earning Per share 24.30
Dividend Payout Ratio 51.44%
2008

Dividend per Common Share 11.50


Diluted Earning Per share 22.25
Dividend Payout Ratio 51.68%
2009

Dividend per Common Share 11.00


Diluted Earning Per share 22.42
Dividend Payout Ratio 49.06%
Earning Per Share

Year 2007 2008 2009


Earning Per Share 51.44% 51.68% 49.06%

Dividend Payout Ratio

52.00%
51.00%
50.00%
Dividend Payout Ratio
49.00%
48.00%
47.00%
2007 2008 2009

Dividend Yield

Dividend Yield= Dividend per Common Share / Market Price per Common Share

2007

Dividend per Common Share 12.50


Market Price per Share 399.95
Dividend Yield 3.13%
2008

Dividend per Common Share 11.50


Market Price per Share 125.81
Dividend Yield 9.14%
2009

Dividend per Common Share 11.00


Market Price per Share 219.68
Dividend Yield 5%
Earning Per Share

Year 2007 2008 2009


Earning Per Share 3.13% 9.14% 5.00%

Dividend Yield
9.14%
10.00%
8.00%
5.00%
6.00%
3.13% Dividend Yield
4.00%
2.00%
0.00%
2007 2008 2009

Comment on Ratio Analysis:

1. Current Ratio:
In MCB bank limited 2008s current ratio is strong than other two years. It shows
that this year’s liabilities could be recovered with its assets. After 2008, a bank has
maintained good current ratio in 2009
Current ratio does not show the true picture of the organization. Sometimes it shows that
organization has ability to pay its obligations but its profitability ratio tells that it has not ability to
pay its obligation. But still it is very useful for the analysts especially for the creditors.
2. Quick Ratio:
Prepaid expenses are considered as current assets so they are included in current ratio calculation.
Prepaid expenses are less liquid. Normally it is not easily converted into cash on short notice. In
2008 quick ratio is better than other years it show that bank can easily recover its liabilities on
short notice.
3. Working Capital:
Working capital is better in 2009, which is 47,700,847. It means that are
assets utilized more economically in 2009 as compared to 2007, 2008.
4. Cash Ratio:
Higher cash ratio also shows the higher rate of satisfaction like other liquidity
ratios. Cash ratio is more important liquidity ratio. Cash ratio is higher in 2007 as compared to
2008 & 2009.
5. Debt Ratio:
Financial leverage is the extent to which a firm is financed with debt.. In Muslim Commercial
bank, years 2007 & 2008 were financed with debt as compare to year 2009.
6. Debt to Equity Ratio:
The debt equity ratio is a simple rearranged of the debt ratio. Debt equity ratio shows how the
firm’s stockholder bears the risk of the firm. Greater the debt greater risk for the firm s
shareholders .In 2007 risk for the share holders was very low as compared to the year 2009.
7. Return on Investment:
This ratio is more meaningful for share holders who are interested to know the profit
earned by the company because the dividend paid from available profit higher ratio
means factor of production fully utilized and good position. Here return on Investment is
higher in 2007 as compare to year 2008 & 2009.
8. Interest Coverage Ratio:
Coverage ratio shows the number of the times a firm can recover or meet particular financial
obligations. The interest coverage ratio, which is also called the time
interest earned ratio, measure the coverage of the firm s interest expense. Year 2007 is better in
interest coverage ratio as compare to the other years.
9. Return on Assets:
This ratio has a decreasing trend. It means the assets of the business are not fully utilized
in more and efficient way and also shows an unfavorable trend of the business. This ratio
of the bank was too low in the year 2009, as compare to other two years.
10. Interest to Expense Ratio:
The interest to expense ratio is the profitability ratio. The more the good ratio means that the
business is running well. The Interest to expense ratio of the MCB is not good as compare the
year 2007, 2008.
11. Earning per Share:
This ratio got really improved as it has gone with the increase in profit. Earning per share
is a good measure of profitability when compared with similar other business. Here
decreasing EPS, which will surely decrease share price. This ratio has the same trend as
the return on the assets.
12. Price earning Ratio:
Price earning ratio of MCB bank is high in 2007 as compared to the other years. Because the
market price per share is high in 2007. Because in this year MCB generate an excellent profit.
2009 is also good but 2008 is worst all of them.
13. Dividend Payout Ratio:
The dividend payout ratio of the MCB is almost constant for the years 2007, 2008, 2009.
14. Dividend Yield Ratio:
The dividend yield ratio of the MCB is higher in 2007 because the share price was higher in
2007. Dividend yield Ratio is good in 2009 and worst at all in year 2008.