MCB Bank Limited (formerly Muslim Commercial Bank) previously named as a (Manjoo

Co-operative Bank) was incorporated by the Adamjee Group on July 9, 1947, under the
Indian Companies Act, VII of 1913 as a limited company. The bank was established to
provide banking facilities to the business community of South Asia. The bank was
nationalized in 1974 during the government of Zulfikar Ali Bhutto. This was the first bank to
be privatized in 1991 and the bank was purchased by a consortium of Pakistani corporate
groups led by Nishat Group. As of June 2008, the Nishat Group owns a majority stake in the
bank. The president of the bank is Imran Maqbool.
The group has a presence in business sectors of the country such as banking, textile, cement
and insurance.

Profitability
MCB is Pakistans second largest bank by assets having an asset base of US$7 billion as at
quarter 1, 2012, and the largest by market capitalization having a market capitalization
recorded at $1.2 billion at year end 2011, which was comparatively lower than $1.8 billion
the year before, mainly on account of lower market value.[citation needed]
The bank has a customer base of approximately 4 million and a nationwide distribution
network of 1,190 branches, including 22 Islamic banking branches (December 31, 2011)
within Pakistan and eight branches outside the country (December 31, 2011 including the
Karachi Export Processing Zone Branch), and over 650 ATMs in 110 cities, in a market with
a population of over 190 million.
In 2011, MCB reported a profit after tax of PKR 19.4 billion (approximately $205 million)
and generated a return on average equity of 26.23% and a return on assets of 3.18% (2010:
3.13%) The banks asset quality is strong, with a gross NPL ratio of 8.64%.
MCB has 1165 branches (December 31, 2011), including local branches, and business
establishments in SriLanka and Bahrain, including newly established Rep. Office in Dubai,
UAE. The bank has also formed a private company in Hong Kong (fully owned subsidiary of
MCB) in partnership with Standard Chartered Bank, handling trade transactions of select
countries in the Asia-Pacific region. To further strengthen its financial services base, MCB
incorporated an asset management company in 2005 known as MCB Asset Management
Company. MCB has also incorporated a leasing company in Azerbaijan in 2009.
Fully owned subsidiaries of MCB are:

Muslim Commercial Financial Services (Private) Limited,

MNET Services (Private) Limited,

MCB Trade Services Limited,

MCB Asset Management Company Limited,

MCB leasing (Closed Joint Stock Company).

Business strategy
The bank has also established an Islamic Banking unit to offer Shariah compliant products
and services, with dedicated Islamic banking branches in six cities.
The Wholesale Banking Group caters to local and multinational companies.[citation needed]
The Retail Banking Group focuses on trading and middle market segment primarily for
building risk assets and trade related business. MCB caters to the financing of foreign and
local trade, funds transfer and other seasonal requirements. The Bank has renovated a large
number of branches and staff has been trained for meeting the requirements of SMEs and
other retail customers.[citation needed]
An SME Financing Division has been set up to provide customized financing solutions. The
group also focuses on the development of consumer asset products. MCB has a significant
share of consumer financing business with its House and Car Financing schemes. The
running financing facility against the mortgage of property is also expected to go a long way
in increasing the quality consumer credit portfolio of the bank.[citation needed]
Other areas such as Bancassurance set newer records as well by crossing the Rupees 1 billion
benchmark in 2011.[citation needed] Islamic Banking outperformed in terms of improved
profitability and volumes with introduction of additional 11 products and expansion with 8
new branches in 2011 and Privilege Banking, an elite setup, is a benchmark in the industry.
[citation needed]
They have nine branches across major cities.

Information technology
MCBs name is synonymous with ATM facility in the country[citation needed] as the bank has been
a pioneer in introducing 24-hour cash withdrawal facility and on-screen transactions. MCB
ATM/Debit Card, with its collaboration with VISA, can be used globally. The bank also
pioneered the idea of sharing its ATM network with other banks by establishing an electronic
platform for enhanced network accessibility and secured online transactions. This step has
also played an important role in interconnecting all ATMs of the country.

MCB and Maybank

In 2005, the management of the bank abbreviated its name from Muslim Commercial Bank
Limited to MCB Bank Limited to explore international markets; they were facing resistance
due to the word Muslim especially from Western Countries to avail license. In 2008 the head
office of MCB was shifted from Karachi to Lahore in a newly constructed building, namely
MCB House located at Sharea Ghous-ul-Azam, commonly known as Jail Road.
The MCB Tower in Karachi serves as the MCB's headquarters, and is also the tallest building
in Pakistan. MCB, advised by Merrill Lynch, became the fourth Pakistani Company (the
other three being Hubco, PTCL and Chakwal cement - they all have been delisted) to list on
the London Stock Exchange when it raised US$150 million global depositary receipts.

In May 2008, Malaysian bank, Maybank and MCB signed an agreement, whereby Maybank
acquired 20% of the ordinary shares in MCB from Nishat Group. The acquisition is in-line
with Maybanks strategy, as Malaysias financial services leader in the region, to build its
presence in key growth markets across the region. It also paves the way for MCB, one of
Pakistans premier financial services groups, to engage Maybank as its exclusive foreign
commercial bank strategic partner.[citation needed]
Maybank initially acquired from Nishat Group 94,241,527 ordinary shares in MCB,
representing a 15% stake in the Bank, for a cash price of PKR470 per share. The total
consideration paid was approximately US$686 million. The purchase price represented an
11.4% premium to MCBs closing share price of PKR 422 on May 2, 2008, and a premium of
12.9% to the average closing share price for MCB over the 30 trading days immediately
preceding the date of this announcement.
Based on MCBs December 31, 2007 audited book value, the purchase price represents an
implied price to book value multiple of 5.13x, a price to 2007 earnings multiple of 18.0x and
a price to 2008 earnings multiple of 15.2x. In July 2008 Maybank exercised its right to
increase its stake to 20%.
The stake in MCB allows Maybank the right to appoint two Directors to represent its interest
on the Board of MCB. One of these Directors was to be appointed immediately and the
second Director will be appointed upon completion of the term of the existing Board,
scheduled to be on March 27, 2009.
As part of the transaction, Maybank and MCB are also expected to enter into a business
cooperation arrangement which will include, among others, Islamic banking, retail banking,
credit cards, asset management and SME banking. Maybank and MCB are also expected to
benefit from increased business ties and trade flows between Pakistan and Malaysia