MCB Bank Limited Financial Statements For the year ended December 31, 2010 MCB Bank Limited Statement of Financial Position As at December 31, 2010 Note 2010 2009 (Rupees in '000) Assets Cash and balances with treasury banks 6 45,407,183 38,774,871 Balances with other banks 7 1,478,569 6,009,993 Lendings to financial institutions 8 4,401,781 3,000,000 Investments - net 9 213,060,882 167,134,465 Advances - net 10 254,551,589 253,249,407 Operating fixed assets 11 20,947,540 18,014,896 Deferred tax assets - net - - Other assets - net 12 27,705,069 23,040,095 567,552,613 509,223,727 Liabilities Bills payable 14 10,265,537 8,201,090 Borrowings 15 25,684,593 44,662,088 Deposits and other accounts 16 431,371,937 367,604,711 Sub-ordinated loan - - Liabilities against assets subject to finance lease - - Deferred tax liabilities - net 17 4,934,018 3,196,743 Other liabilities 18 16,092,319 15,819,082 488,348,404 439,483,714 Net assets 79,204,209 69,740,013 Represented by: Share capital 19 7,602,150 6,911,045 Reserves 20 40,162,906 38,385,760 Unappropriated profit 21,414,955 15,779,127 69,180,011 61,075,932 Surplus on revaluation of assets - net of tax 21 10,024,198 8,664,081 79,204,209 69,740,013 Contingencies and commitments 22 The annexed notes 1 to 46 and Annexures I to V form an integral part of these financial statements. Difference - - _________________________ _______ _______ _______ President and Chief Executive Director Director Director MCB Bank Limited Profit and Loss Account For the year ended December 31, 2010 Note 2010 2009 (Rupees in '000) Mark-up / return / interest earned 24 54,821,296 51,616,007 Mark-up / return / interest expensed 25 17,987,767 15,837,322 Net mark-up / interest income 36,833,529 35,778,685 Provision for diminution in the value of investments - net 9.3 444,476 1,484,218 Provision against loans and advances - net 10.4.2 3,100,594 5,796,527 Bad debts written off directly 10.5.1 52,047 41,576 3,597,117 7,322,321 Net mark-up / interest income after provisions 33,236,412 28,456,364 Non-mark-up / interest income Fee, commission and brokerage income 4,129,540 3,455,948 Dividend income 543,906 459,741 Income from dealing in foreign currencies 632,346 341,402 Gain on sale of securities - net 26 411,834 773,768 Unrealized gain on revaluation of investments classified as held for trading - - Other income 27 547,680 612,026 Total non-mark-up / interest income 6,265,306 5,642,885 39,501,718 34,099,249 Non-mark-up / interest expenses Administrative expenses 28 12,173,942 10,111,330 Other provision - net 12.3 88,261 142,824 Other charges 29 986,440 690,150 Total non-mark-up / interest expenses 13,248,643 10,944,304 Extra ordinary / unusual item - - Profit before taxation 26,253,075 23,154,945 Taxation - Current year 8,027,433 7,703,305 - Prior years - (2,232,226) - Deferred 1,352,467 2,188,569 30 9,379,900 7,659,648 Profit after taxation 16,873,175 15,495,297 Unappropriated profit brought forward 15,779,127 9,193,332 Transfer from surplus on revaluation of fixed assets - net of tax 21,792 22,324 15,800,919 9,215,656 Profit available for appropriation 32,674,094 24,710,953 (Rupees) Basic and diluted earnings per share - after tax 33 22.20 20.38 The annexed notes 1 to 46 and Annexures I to V form an integral part of these financial statements. _________________________ _______ _______ _______ President and Chief Executive Director Director Director MCB Bank Limited Statement of Comprehensive Income For the year ended December 31, 2010 2010 2009 (Rupees in '000) Profit after tax for the year 16,873,175 15,495,297 Other comprehensive income Effect of translation of net investment in foreign branches 89,828 67,465 Comprehensive income transferred to equity 16,963,003 15,562,762 Components of comprehensive income not reflected in equity Net change in fair value of available for sale securities 216,561 3,068,752 Deferred tax (74,473) (571,913) 142,088 2,496,839 Total comprehensive income for the year 17,105,091 18,059,601 The annexed notes 1 to 46 and Annexures I to V form an integral part of these financial statements. _________________________ ________ ________ ________ President and Chief Executive Director Director Director MCB Bank Limited Cash Flow Statement For the year ended December 31, 2010 Note 2010 2009 (Rupees in '000) Cash flows from operating activities Profit before taxation 26,253,075 23,154,945 Less: Dividend income (543,906) (459,741) 25,709,169 22,695,204 Adjustments for non-cash charges: Depreciation 11.2 1,012,161 909,471 Amortization 11.3 160,352 153,397 Provision against loans and advances - net 10.4.2 3,100,594 5,796,527 Provision for diminution in the value of investments - net 9.3 444,476 1,484,218 Provision against other assets - net 12.3 88,261 142,824 Bad debts written off directly 10.5.1 52,047 41,576 Operating fixed assets written off 29 - 17,477 Gain on disposal of fixed assets - net 27 (15,993) (30,614) 4,841,898 8,514,876 30,551,067 31,210,080 (Increase) / decrease in operating assets Lendings to financial institutions (1,401,781) 1,100,079 Net investments in 'held for trading' securities - 94,176 Advances - net (4,454,823) 3,047,960 Other assets - net (2,246,347) (3,416,086) (8,102,951) 826,129 Increase / (decrease) in operating liabilities Bills payable 2,064,447 (2,350,378) Borrowings (18,977,495) 21,998,248 Deposits and other accounts 63,767,226 37,423,087 Other liabilities 1,056,341 (6,641,481) 47,910,519 50,429,476 70,358,635 82,465,685 Income tax paid (11,657,474) (4,317,603) Net cash flows from operating activities 58,701,161 78,148,082 Cash flows from investing activities Net investments in 'available for sale' securities (47,515,913) (72,317,445) Net investments in 'held to maturity' securities 1,445,720 3,303,107 Investment in subsidiary company (84,139) (394) Dividends received 570,788 446,181 Investments in operating fixed assets (2,572,251) (1,893,986) Sale proceeds of property and equipment disposed off 33,241 93,092 Net cash flows from investing activities (48,122,554) (70,369,445) Cash flows from financing activities Dividend paid (8,567,547) (6,735,510) Net cash flows from financing activities (8,567,547) (6,735,510) Exchange differences on translation of the net investment in foreign branches 89,828 67,465 Increase in cash and cash equivalents 2,100,888 1,110,592 Cash and cash equivalents at beginning of the year 44,725,336 43,032,579 Effects of exchange rate changes on cash and cash equivalents 59,528 641,693 44,784,864 43,674,272 Cash and cash equivalents at end of the year 34 46,885,752 44,784,864 The annexed notes 1 to 46 and Annexures I to V form an integral part of these financial statements. __________________________ ________ ________ ________ President and Chief Executive Director Director Director MCB Bank Limited Statement of Changes in Equity For the year ended December 31, 2010 Share Capital reserves Revenue Reserves Total capital Share Exchange Statutory General Unappropriated premium translation reserve reserve profit reserve ---------------------------------------------------- (Rupees in '000) ---------------------------------------------------- Balance as at December 31, 2008 6,282,768 9,702,528 188,686 8,277,551 18,600,000 9,193,332 52,244,865 Changes in equity for 2009 Profit after taxation for the year ended December 31, 2009 - - - - - 15,495,297 15,495,297 Exchange differences on translation of net investment in foreign branches - - 67,465 - - - 67,465 Total comprehensive income for the year ended December 31, 2009 - - 67,465 - - 15,495,297 15,562,762 Transferred from surplus on revaluation of fixed assets to unappropriated profit - net of tax - - - - - 22,324 22,324 Transferred to statutory reserve - - - 1,549,530 - (1,549,530) - Issue of bonus shares - December 2008 628,277 - - - - (628,277) - Final cash dividend - December 2008 - - - - - (1,570,692) (1,570,692) Interim cash dividend - March 2009 - - - - - (1,727,781) (1,727,781) Interim cash dividend - June 2009 - - - - - (1,727,773) (1,727,773) Interim cash dividend - September 2009 - - - - - (1,727,773) (1,727,773) Balance as at December 31, 2009 6,911,045 9,702,528 256,151 9,827,081 18,600,000 15,779,127 61,075,932 Changes in equity for 2010 Profit after taxation for the year ended December 31, 2010 - - - - - 16,873,175 16,873,175 Exchange differences on translation of net investment in foreign branches - - 89,828 - - - 89,828 Total comprehensive income for the year ended December 31, 2010 - - 89,828 - - 16,873,175 16,963,003 Transferred from surplus on revaluation of fixed assets to unappropriated profit - net of tax - - - - - 21,792 21,792 Transferred to statutory reserve - - - 1,687,318 - (1,687,318) - Issue of bonus shares - December 2009 691,105 - - - - (691,105) - Final cash dividend - December 2009 - - - - - (2,418,877) (2,418,877) Interim cash dividend - March 2010 - - - - - (1,900,549) (1,900,549) Interim cash dividend - June 2010 - - - - - (2,280,645) (2,280,645) Interim cash dividend - September 2010 - - - - - (2,280,645) (2,280,645) Balance as at December 31, 2010 7,602,150 9,702,528 345,979 11,514,399 18,600,000 21,414,955 69,180,011 For details of dividend declaration and appropriations, please refer note 45 to these financial statements.