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MCB

MCB Bank KASE:MCB Stock Report

Last Price

PK₨135.43

Market Cap

PK₨160.5b

7D

-1.7%

1Y

-16.5%

Updated

23 May, 2022

Data

Company Financials +
MCB fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance3/6
Financial Health4/6
Dividends5/6

MCB Stock Overview

MCB Bank Limited, together with its subsidiaries, provides commercial banking and related services in Pakistan, South Asia, Eurasia, and the Middle East.

MCB Bank Competitors

Price History & Performance

Summary of all time highs, changes and price drops for MCB Bank
Historical stock prices
Current Share PricePK₨135.43
52 Week HighPK₨169.00
52 Week LowPK₨134.90
Beta0.76
1 Month Change-8.49%
3 Month Change-15.57%
1 Year Change-16.54%
3 Year Change-22.67%
5 Year Change-43.35%
Change since IPO1,010.64%

Recent News & Updates

Shareholder Returns

MCBPK BanksPK Market
7D-1.7%-0.02%-0.5%
1Y-16.5%-0.9%-13.6%

Return vs Industry: MCB underperformed the PK Banks industry which returned 0% over the past year.

Return vs Market: MCB underperformed the PK Market which returned -12.1% over the past year.

Price Volatility

Is MCB's price volatile compared to industry and market?
MCB volatility
MCB Average Weekly Movement2.9%
Banks Industry Average Movement4.7%
Market Average Movement5.7%
10% most volatile stocks in PK Market8.9%
10% least volatile stocks in PK Market3.4%

Stable Share Price: MCB is less volatile than 75% of PK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: MCB's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
194715,529Shoaib Mumtazhttps://www.mcb.com.pk

MCB Bank Limited, together with its subsidiaries, provides commercial banking and related services in Pakistan, South Asia, Eurasia, and the Middle East. The company operates through Retail Banking, Corporate Banking, Consumer Banking, Islamic Banking, Treasury, Assets Management, and International Banking segments. It offers current, savings, and term deposit products; fixed deposits; agriculture finance; credit cards, auto loans, fleet4u, home loans, personal loans, secured personal loans, unsecured overdraft facility, and student personal loans; working capital loans, term loans, trade-based finance services, and dollar-based loans; letter of credits, import and export services, bill discounting/negotiation, and export finance; bancassurance products; investment services; debit cards, automated teller machines (ATMs), and mobile and internet banking services; home remittance services; collection and payment services; and SME and corporate banking services.

MCB Bank Fundamentals Summary

How do MCB Bank's earnings and revenue compare to its market cap?
MCB fundamental statistics
Market CapPK₨160.49b
Earnings (TTM)PK₨33.25b
Revenue (TTM)PK₨99.06b

4.8x

P/E Ratio

0.9x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MCB income statement (TTM)
RevenuePK₨99.06b
Cost of RevenuePK₨1.58b
Gross ProfitPK₨97.48b
Other ExpensesPK₨64.23b
EarningsPK₨33.25b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)28.06
Gross Margin98.40%
Net Profit Margin33.57%
Debt/Equity Ratio190.8%

How did MCB perform over the long term?

See historical performance and comparison

Dividends

14.0%

Current Dividend Yield

69%

Payout Ratio

Valuation

Is MCB Bank undervalued compared to its fair value and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


4.83x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: MCB (PKR135.43) is trading above our estimate of fair value (PKR118.27)

Significantly Below Fair Value: MCB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MCB's PE Ratio (4.8x) is in line with the PK Banks industry average.

PE vs Market: MCB is good value based on its PE Ratio (4.8x) compared to the PK market (5.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MCB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MCB is overvalued based on its PB Ratio (0.9x) compared to the PK Banks industry average (0.6x).


Future Growth

How is MCB Bank forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-0.3%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MCB's forecast earnings growth is above the savings rate (10.2%).

Earnings vs Market: Insufficient data to determine if MCB's earnings are forecast to grow faster than the PK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MCB's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: MCB's revenue is forecast to decline over the next 3 years (-0.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MCB's Return on Equity is forecast to be high in 3 years time


Past Performance

How has MCB Bank performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


10.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MCB has high quality earnings.

Growing Profit Margin: MCB's current net profit margins (33.6%) are lower than last year (33.7%).


Past Earnings Growth Analysis

Earnings Trend: MCB's earnings have grown by 10.1% per year over the past 5 years.

Accelerating Growth: MCB's earnings growth over the past year (11.6%) exceeds its 5-year average (10.1% per year).

Earnings vs Industry: MCB earnings growth over the past year (11.6%) underperformed the Banks industry 11.6%.


Return on Equity

High ROE: MCB's Return on Equity (18.9%) is considered low.


Financial Health

How is MCB Bank's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

4/6

Financial Health Score 4/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: MCB's Assets to Equity ratio (12.7x) is moderate.

Allowance for Bad Loans: MCB has a low allowance for bad loans (87%).

Low Risk Liabilities: 78% of MCB's liabilities are made up of primarily low risk sources of funding.

Loan Level: MCB has an appropriate level of Loans to Assets ratio (32%).

Low Risk Deposits: MCB's Loans to Deposits ratio (45%) is appropriate.

Level of Bad Loans: MCB has a high level of bad loans (6.8%).


Dividend

What is MCB Bank current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


14.03%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MCB's dividend (14.03%) is higher than the bottom 25% of dividend payers in the PK market (3.71%).

High Dividend: MCB's dividend (14.03%) is in the top 25% of dividend payers in the PK market (10.85%)


Stability and Growth of Payments

Stable Dividend: MCB's dividend payments have been volatile in the past 10 years.

Growing Dividend: MCB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (69.5%), MCB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MCB's dividends in 3 years are forecast to be covered by earnings (69.4% payout ratio).


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Shoaib Mumtaz

0.42

Tenure

Mr. Shoaib Mumtaz serves as Director at MCB Bank Limited from December 21, 2021 and also serves as President and Chief Executive Officer since February 2022. He served as Group Head of Corporate Finance &...


Leadership Team

Experienced Management: MCB's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: MCB's board of directors are considered experienced (8.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

MCB Bank Limited's employee growth, exchange listings and data sources


Key Information

  • Name: MCB Bank Limited
  • Ticker: MCB
  • Exchange: KASE
  • Founded: 1947
  • Industry: Diversified Banks
  • Sector: Banks
  • Implied Market Cap: PK₨160.493b
  • Shares outstanding: 1.19b
  • Website: https://www.mcb.com.pk

Number of Employees


Location

  • MCB Bank Limited
  • MCB Building
  • 15-Main Gulberg
  • Lahore
  • Pakistan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/23 00:00
End of Day Share Price2022/05/23 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.