Post on 19-Nov-2014
BALANCE SHEET OF MCB
2007 2008 2009 Assets Cash and balances with treasury banks
39,683,883 39,631,172 38,774,871
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 investment
105,269 2,683,994 1,484,218
- 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 classified as held for trading
(13,105) (103,198) –
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 assets
11,855 21,319 22,324
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 with treasury banks
39,683,883 39,631,172 38,774,871 10% 9% 8%
Balances with other banks
3,807,519 4,043,100 6,009,993 1% 1% 1%
Lending to financial intuitions
1,051,372 4,100,079 3,000,000 0% 1% 1%
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 accounts
292,098,066 330,181,624 367,604,711 71% 74% 72%
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 of assets
9,705,519 6,191,189 8,664,081 2% 1% 2%
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/ interest earned
31,786,595 40,043,824 51,616,007 84% 87% 90%
Mark up/ return/ interest expense
(7,865,533) (11,560,740) (15,841,463) -21% -25% -28%
Net mark up/ interest income
23,921,062 28,483,084 35,774,544 63% 62% 62%
Provision for bad debts
(3,061,308) (4,042,256) (7,465,145) -8% -9% -13%
Net mark up/ interest income after provision
20,859,754 24,440,828 28,309,399 55% 53% 49%
Total non mark up interest income
6,011,291 5,791,440 5,642,885 17% 13% 10%
Non mark up/interest expense
(5,563,010) (8,364,252) (10,797,339) -16% -18% -19%
Profit Before Taxation
21,308,035 21,868,016 23,154,945 56% 48% 40%
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. LLIIAABBIILLIITTIIEESS ■ 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:
IINNCCOOMMEE ■ 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.
EEXXPPEENNSSEESS ■ 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 with treasury banks
39,683,883 39,631,172 38,774,871 100% 99.9% 98%
Balances with other banks
3,807,519 4,043,100 6,009,993 100% 106% 158%
Lending to financial intuitions
1,051,372 4,100,079 3,000,000 100% 390% 285%
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 accounts
292,098,066 330,181,624 367,604,711 100% 113% 126%
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 of assets
9,705,519 6,191,189 8,664,081 100% 64% 89%
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/ interest earned
31,786,595 40,043,824 51,616,007 100% 126% 162%
Mark up/ return/ interest expense
(7,865,533) (11,560,740) (15,841,463) 100% 147% 201%
Net mark up/ interest income
23,921,062 28,483,084 35,774,544 100% 119% 150%
Provision for bad debts
(3,061,308) (4,042,256) (7,465,145) 100% 132% 244%
Net mark up/ interest income after provision
20,859,754 24,440,828 28,309,399 100% 117% 136%
Total non mark up interest income
6,011,291 5,791,440 5,642,885 100% 96% 94%
Non mark up/interest expense
(5,563,010) (8,364,252) (10,797,339) 100% 150% 194%
Profit Before Taxation
21,308,035 21,868,016 23,154,945 100% 103% 109%
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
IINNCCOOMMEE 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. EEXXPPEENNSSEE 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
2008
200
Current asset 376,592,633
Current liabilities 342,463,187
Current ratio 1.10
Current asset 406,541,695
Current liabilities 363,396,932
Current ratio 1.12
Current asset 468,168,736
Current liabilities 420,467,889
Current ratio 1.11
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.
109%
110%
111%
112%
2007 2008 2009
110%
112%
111%
Current Ratio
Current Ratio
Year 2007 2008 2009 Percentage 1.10 1.12 1.11
Quick Ratio = Cash + Account Receivable + Marketable Securities/Current Liabilities
2007
Cash + Account Receivable +Marketable Securities
263,503,372
Current Liabilities 342,463,187 Quick Ratio .77:1
2008
Cash + Account Receivable +Marketable Securities
309,909,821
Current Liabilities 363,396,932 Quick Ratio .85:1
2009
Cash + Account Receivable +Marketable Securities
301,034,271
Current Liabilities 420,467,889 Quick Ratio .72:1
Quick Ratio
Year 2007 2008 2009 Ratio .77:1 .85:1 .72:1
Graphical representation:
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
0.65
0.7
0.75
0.8
0.85
0.9
2007 2008 2009
0.77
0.85
0.72
Quick Ratio
Quick Ratio
Working Capital 47,700,847
Working Capital:
Year 2007 2008 2009 Ratio 34,129,446 43,144,763 47,700,847
Graph:
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
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
2007 2008 2009
34,129,446
43,144,76347,700,847
Working Capital
Working Capital
Marketable Securities Current Liabilities 342,463,187 Cash Ratio 0.13
2008
Cash Equivalent + Marketable Securities
43,674,272
Current Liabilities 363,396,932 Working Capital 0.12
2009
Cash Equivalent + Marketable Securities
44,784,864
Current Liabilities 420,467,889 Working Capital 0.11
Cash Ratio
Year 2007 2008 2009 Ratio 0.13 0.12 0.11
Graph:
0.1
0.11
0.12
0.13
2007 2008 2009
Cash Ratio
Cash Ratio
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 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
52.00%54.00%56.00%58.00%60.00%62.00%64.00%66.00%
2007 2008 2009
Debt to Equity Ratio
Debt to Equity Ratio
Total Liabilities 439,483,714 Total Assets 509,223,727 Debt Ratio 86%
Debt ratio
Year 2007 2008 2009 Ratio 87% 87% 86%
Graph:
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 Liabilities + Equity)
52,572,491
Return On Investment 29%
86%
86%87%
87%
88%
2007 2008 2009
Debt Ratio
Debt Ratio
2008
Net Profit After Tax 15,374,600 Average(Long-term Liabilities + Equity)
66,172,297
Return On Investment 23.23%
2009
Net Profit After Tax 15,495,297 Average(Long-term Liabilities + Equity)
77,059,770
Return On Investment 20%
ROI
Year 2007 2008 2009 ROI 29% 23.23% 20%
ROI
0%
20%
40%
2007 2008 2009
ROI
ROI
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:
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%
0%
50%
100%
150%
200%
250%
300%
2007 2008 2009
Interest Coverage Ratio
Interest Coverage Ratio
ROA
Year 2007 2008 2009 ROI 4.1% 3.6% 3.3%
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
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
2007 2008 2009
ROA
ROA
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
Earning Per Share
Earning Per Share=Net Income after Tax/Weighted Average Number of Common Share Outstanding
2007
0
2
4
6
2007 2008 2009
Income/Expense Ratio
Income/Expense Ratio
Total Income After Tax 15,265,562,000 Weighted Average Number of Common Share Outstanding
628,276,843
Earning Per Share Rs. 24.30 2008
Total Income After Tax 15,374,600,000 Weighted Average Number of Common Share Outstanding
628,276,843
Earning Per Share Rs. 24.47
2009
Total Income After Tax 15,495,297,000 Weighted Average Number of Common Share Outstanding
691,104,527
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
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
21
22
23
24
25
2007 2008 2009
Earning Per Share
Earning Per Share
Earning Per Share
Year 2007 2008 2009 Earning Per Share 16.5 Times 5.65 Times 9.8 Times
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%
0
5
10
15
20
2007 2008 2009
Price/Earning Ratio
Price/Earning Ratio
Earning Per Share
Year 2007 2008 2009 Earning Per Share 51.44% 51.68% 49.06%
Dividend Yield
Dividend Yield= Dividend per Common Share / Market Price per Common Share
2007
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%
47.00%
48.00%
49.00%
50.00%
51.00%
52.00%
2007 2008 2009
Dividend Payout Ratio
Dividend Payout Ratio
Dividend per Common Share 12.50 Market Price per Share 399.95 Dividend Yield 3.13%
Earning Per Share
Year 2007 2008 2009 Earning Per Share 3.13% 9.14% 5.00%
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:
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
2007 2008 2009
3.13%
9.14%
5.00%
Dividend Yield
Dividend Yield
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.