MCB Bank Annual Report 2010

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MCB Bank Annual Report 2010 Annual Report 2010 I 3 Contents 06 Vision and Mission Statement Stakeholder’s Information 08 Strategic Objectives 43 Key Performance Indicators 20 Core Values 44 Six Years’ Financial Summary 22 Awards 46 Six Years’ Growth Summary 24 Products and Services 46 Key Financial Highlights Per Branch 26 Corporate Information 48 Graphical Presentation of Financial Statements 28 Profiles of the Board of Directors 49 Key Interest Bearing Assets and Liabilities 33 Board Committees 50 Segment Information 35 Organisational Structure 51 Maturity Analysis of Assets and Liabilities 36 Management Committees 52 Groupwise Performance 39 Corporate Profile of the Bank 53 Statement of Value Added 40 Chairman’s Message 54 Vertical Analysis 41 President’s Review 55 Horizontal Analysis 56 Quarterly Performance for 2010 and 2009 56 Summary of Cash Flows 57 Market Statistics of MCB’s Share 58 MCB Calendar 4 I MCB Bank Limited 59 Entity Ratings Consolidated Financial Statements 60 Directors’ Report to the Members 166 Directors’ Report on Consolidated Financial 73 Corporate Social Responsibility Statements 74 Statement of Ethics & Business Practices 167 Auditors’ Report to the Members 77 Statement of Compliance with the Code of 168 Consolidated Statement of Financial Position Corporate Governance 169 Consolidated Profit and Loss Account 78 Auditors’ Review Report to the Members 170 Consolidated Statement of Comprehensive Income on Code of Corporate Governance 171 Consolidated Cash Flow Statement 172 Consolidated Statement of Changes in Equity Standalone Financial Statements 173 Notes to the Consolidated Financial Statements 79 Auditors’ Report to the Members 235 Annexures 80 Statement of Financial Position 81 Profit and Loss Account 243 Branch Network 82 Statement of Comprehensive Income 245 Pattern of Shareholdings 83 Cash Flow Statement 245 Categories of Shareholders 84 Statement of Changes in Equity 247 Notice of 63rd Annual General Meeting 85 Notes to the Financial Statements 250 Glossary of Terms 146 Annexures 253 Form of Proxy Annual Report 2010 I 5 Vision To be the leading financial services provider, partnering with our customers for a more prosperous and secure future. 6 I MCB Bank Limited Mission We are a team of committed professionals, providing innovative and efficient financial solutions to create and nurture long-term relationships with our customers. In doing so, we ensure that our shareholders can invest with confidence in us. Annual Report 2010 I 7 Strategic Objectives • Delivering remarkable returns to stakeholders, sustainable performance, exceeding market and shareholder expectations. • Providing value added services through operational expansion, geography and upgraded systems. • Building a corporate culture of equality, trust and team spirit as we remain dedicated to be a socially responsible organization. 8 I MCB Bank Limited Annual Report 2010 I 9 With a winning combination of leading professionals and best operating practices, we create teams that are geared towards value-creation and value-growth — driven by time-tested partnerships. 10 I MCB Bank Limited Annual Report 2010 I 11 Our alliances help us gain strategic advantage across all markets — helping us to secure and sustain our leadership and foster a spirit of partnership. 12 I MCB Bank Limited Annual Report 2010 I 13 Our integrity and transparency in all aspects of our business, across the country, demand that we build relationships on trust, confidence and the full measure of discretion for both our internal and external customers. 14 I MCB Bank Limited Annual Report 2010 I 15 With the right combination of insight, foresight and hindsight, we can focus on a variety of strategic and leadership goals to help bring our vision to life in ways that add more perspective to the business. 16 I MCB Bank Limited Annual Report 2010 I 17 Relationships that are built on trust, prove to be an important and sustainable competitive advantage. We believe that winning our customers’ trust is the way to benefit from an investment in their hearts and minds. 18 I MCB Bank Limited Annual Report 2010 I 19 Values Integrity We are the trustees of public funds and serve our community with integrity. We believe in being the best at always doing the right thing. We deliver on our responsibilities and commitments to our customers as well as our colleagues. Innovation We encourage and reward people who challenge the status quo and think beyond the boundaries of the conventional. Our teams work together for the smooth and efficient implementation of ideas and initiatives. Excellence We take personal responsibility for our role as leaders in pursuit of excellence. We are a performance driven, result oriented organization where merit is the only criterion for reward. 20 I MCB Bank Limited Customer Centricity Our customers are at the heart of everything we do. We thrive on the challenge of understanding their needs and aspirations, both realized and unrealized. We make every effort to exceed customer expectations through superior services and solutions. Respect We respect our customers’ values, beliefs, culture and history. We value the equality of gender and diversity of experience and education that our employees bring with them. We create an environment where each individual is enabled to succeed. Annual Report 2010 I 21 Awards 2010 The Asian Banker: Strongest Bank in Pakistan 2009 Asiamoney: Best Domestic Bank in Pakistan 2010 The Asian Banker: Leadership Achievement Award 2009 The Asset: Best Domestic Bank in Pakistan 2010 MMT: Best Bank Led MMT Service 2008 Euromoney: Best Bank in Asia 2010 ICAP / ICMAP: BCR Award 2009-Banking Sector 2008 Euromoney: Best Bank in Pakistan 2010 SAFA: Certificate of Merit Award 2008 Asiamoney: Best Domestic Bank in Pakistan 22 I MCB Bank Limited 2006 Asiamoney: Best Domestic Bank in Pakistan 2004 Asiamoney: Best Domestic Bank in Pakistan 2006 Euromoney: Best Bank in Pakistan 2003 Euromoney: Best Bank in Pakistan 2005 Asiamoney: Best Domestic Bank in Pakistan 2001 Euromoney: Best Bank in Pakistan 2005 Euromoney: Best Bank in Pakistan 2000 Euromoney: Best Bank in Pakistan 2004 Euromoney: Best Bank in Pakistan Annual Report 2010 I 23 Products and Services Current Account MCB Home Remittance MCB Bank offers a variety of current accounts to cater to the everyday MCB Home Remittance provides a seamless inflow of foreign remittances transactional needs of various customers. These accounts ensure ease and credited in the beneficiary’s account within minutes. Cash payments can freedom to bank from any of the 1100+ branches across the country. The also be made at our designated branches on behalf of XpressMoney, Samba different accounts include: the Basic Banking Account that has no minimum (SpeedCashNow), MoneyGram and Maybank Money Express Malaysia, balance; Business Account offering free online transactions, Demand Drafts, along with cash payments from other correspondents from all over the world Pay Orders and lots more to meet the day to day business requirements; under the brand name of MCB Fast & Easy. Current Life Account which offers the security of life insurance free of cost; and for all others, the conventional Current Account. MCB Corporate Financing MCB Corporate Financing provides access to diversified financing options, Savings Account including working capital loans, term loans, trade finance services and MCB Bank offers a wide array of savings products that suit short term growth investment banking. & transactional needs. Our savings accounts offer attractive profit rates as well as flexibility to transact. Savings Xtra is targeted for customers having MCB Project & Structured Finance Rs. 5 million + deposit, 365 Gold offers profit rate on daily balance while PLS MCB Project & Structured Finance involves financing complex projects, savings has a lower minimum balance requirement. In addition, two unique usually in an SPV structure, where the loan is tightly structured around the products: Smart Savings and Savings Maximizer are special saving accounts cash flows, risks are allocated amongst various stakeholders, and there is run solely via debit cards and other remote banking channels, offering a very limited or no recourse to the sponsors. competitive rate to both high and low end savers. MCB Syndicated Loans and Debt Capital Markets Term Deposit MCB Syndicated Loans and Debt Capital Markets involves arrangement, MCB Term Deposit offer attractive short to mid-term investment options with underwriting and placement services for significant financing requirements flexibility, convenience and security. With various tenor options available, by large corporate and institutional clients to other financial institutions or customers can choose one that suit their needs. This is combined with through the debt capital markets. different profit payout options and the added facility of being able to avail credit facility against their deposits. MCB Quasi Equity/Hybrid Instruments MCB Quasi Equity/Hybrid Instruments structure and place a category MCB Online Banking of debt that has some characteristics of equity such as being unsecured, MCB has a fast growing network of 1100+ online branches in the country subordinated or with a potential equity upside. providing customers real-time online transaction facilities. MCB Equity Capital Raising MCB MNET MCB Equity Capital Raising relates to raising capital for our clients by offering MNET is an electronic inter-bank connectivity platform for online transactions common or preferred equity to public or private investors,
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