Mcb Bank Ltd revenue growth accelerated to 22.4% in 2015 vs. 19.4% a year earliner
09 Feb 2016 • About Mcb Bank Ltd (
$MCBS) • By InTwits
Mcb Bank Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mcb Bank Ltd is a growth stock: 2015 revenue growth was 22.4%, 5 year revenue CAGR was 13.0% at 2015 ROIC 14.9%
- Mcb Bank Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.5%. At the same time it's a lot of higher than industry average of 3.3%.
- CAPEX is quite volatile: 2,516 in 2015, 4,103 in 2014, 9,997 in 2013, 14,978 in 2012, 20,502 in 2011
- The company has highly profitable business model: ROIC is at 14.9%
- It operates with high leverage: Net Debt/EBITDA is 10.6x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mcb Bank Ltd ($MCBS) key annual financial indicators
| mln. PKR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 75,524 | 77,803 | 76,463 | 91,323 | 111,778 | 22.4% |
| Net Income | 19,274 | 20,886 | 21,875 | 24,656 | 24,910 | 1.0% |
Balance Sheet
|
|---|
| Cash | 37,797 | 42,184 | 44,282 | 31,015 | 61,266 | 97.5% |
| Short Term Debt | 21,552 | 22,203 | 26,001 | 33,116 | 11,975 | -63.8% |
| Long Term Debt | 39,101 | 79,064 | 38,660 | 59,777 | 118,615 | 98.4% |
Cash flow
|
|---|
| Capex | 2,451 | 3,419 | 4,682 | 4,762 | 4,055 | -14.8% |
Ratios
|
|---|
| Revenue growth | 24.4% | 3.0% | -1.7% | 19.4% | 22.4% | |
| Net Income Margin | 25.5% | 26.8% | 28.6% | 27.0% | 22.3% | -4.7% |
| CAPEX, % of revenue | 3.2% | 4.4% | 6.1% | 5.2% | 3.6% | -1.6% |
| ROIC | 18.7% | 15.0% | 14.4% | 15.8% | 14.9% | -0.9% |
| ROE | 22.3% | 21.2% | 19.8% | 19.7% | 18.0% | -1.7% |
Revenue and profitability
The company's Revenue surged on 22.4% in 2015.
Net Income marign decreased on 4.7 pp from 27.0% to 22.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.6% in 2015. CAPEX/Revenue decreased slightly on 0.77 pp from 4.4% in 2012 to 3.6% in 2015. For the last three years the average CAPEX/Revenue was 5.0%.
Return on investment
The company operates at good ROIC (14.89%) and ROE (17.96%). ROIC decreased slightly on 0.90 pp from 15.8% to 14.9% in 2015. ROE decreased slightly on 1.7 pp from 19.7% to 18.0% in 2015.
Leverage (Debt)
Debt jumped on 40.6% in 2015 while cash surged on 97.5% in 2015.
Appendix 1: Peers in Banks
Below we provide Mcb Bank Ltd benchmarking against other companies in Banks industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Banque Intl Arabe De Tunisie ($BIND) | 9.5% | -20.2% | 17.3% | 50.2% | |
| European Islamic Investment Bank ($EIIB) | -41.8% | 121.2% | 12.6% | 42.3% | |
| Tsb Banking Grp ($TSB) | | -3.2% | -33.8% | 39.2% | -1.4% |
| VTB Bank JSC ($VTBR) | 23.8% | 48.1% | 16.5% | 29.8% | |
| Bank Audi S.A.L. ($BQAD) | | 9.1% | 11.7% | 23.9% | 7.1% |
| |
|---|
| Median (43 companies) | 8.9% | 10.2% | 4.8% | 11.5% | 3.5% |
|---|
| Mcb Bank Ltd ($MCBS) | | 3.0% | -1.7% | 19.4% | 22.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lloyds Banking Group ($LLPC) | | 8.0% | 8.9% | 13.1% | 13.6% |
| Banco Santander Sa ($BNC) | 2.2% | 2.7% | 2.6% | 8.9% | 10.2% |
| Finansbank ($FBKD) | 2.0% | 1.9% | 2.8% | 8.5% | |
| Tsb Banking Grp ($TSB) | 1.3% | 1.8% | 4.4% | 7.2% | 3.4% |
| Guaranty Trust Bank ($GRTB) | 10.0% | 6.7% | 6.1% | 6.8% | |
| |
|---|
| Median (40 companies) | 2.3% | 2.2% | 2.7% | 2.1% | 2.5% |
|---|
| Mcb Bank Ltd ($MCBS) | 3.2% | 4.4% | 6.1% | 5.2% | 3.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 16.3% | 21.7% | 26.9% | 30.1% | |
| Guaranty Trust Bank ($GRTB) | 14.2% | 19.8% | 18.9% | 17.8% | |
| Zenith Bank ($ZENB) | 13.8% | 19.0% | 17.6% | 15.0% | |
| United Bank Ltd ($UBLS) | 12.6% | 11.7% | 11.8% | 13.8% | |
| Halyk Savings Bank Of Kazakhstn JSC ($HSBK) | 5.1% | 8.8% | 9.0% | 12.9% | |
| |
|---|
| Median (43 companies) | 6.9% | 6.0% | 5.3% | 4.4% | 3.3% |
|---|
| Mcb Bank Ltd ($MCBS) | 18.7% | 15.0% | 14.4% | 15.8% | 14.9% |
