Mcb Bank Ltd Net Income dropped on 11.4% in 2016 and Revenue dropped on 10.7%
08 Feb 2017 • About Mcb Bank Ltd (
$MCBS) • By InTwits
Mcb Bank Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mcb Bank Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.7%. At the same time it's a lot of higher than industry average of 3.6%.
- CAPEX is quite volatile: 7,199 in 2016, 7,309 in 2015, 7,134 in 2014, 13,458 in 2013, 15,119 in 2012
- The company has highly profitable business model: ROIC is at 12.5%
- It operates with high leverage: Net Debt/EBITDA is 7.8x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mcb Bank Ltd ($MCBS) key annual financial indicators
| mln. PKR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 77,803 | 76,463 | 91,323 | 111,778 | 99,865 | -10.7% |
| Net Income | 20,886 | 21,875 | 24,656 | 24,910 | 22,063 | -11.4% |
Balance Sheet
|
|---|
| Cash | 42,184 | 44,282 | 31,015 | 61,266 | 75,732 | 23.6% |
| Short Term Debt | 22,203 | 26,001 | 33,116 | 11,975 | 13,291 | 11.0% |
| Long Term Debt | 79,064 | 38,660 | 59,777 | 118,615 | 77,439 | -34.7% |
Cash flow
|
|---|
| Capex | 3,419 | 4,682 | 4,762 | 4,055 | 4,320 | 6.5% |
Ratios
|
|---|
| Revenue growth | 3.0% | -1.7% | 19.4% | 22.4% | -10.7% | |
| Net Income Margin | 26.8% | 28.6% | 27.0% | 22.3% | 22.1% | -0.2% |
| CAPEX, % of revenue | 4.4% | 6.1% | 5.2% | 3.6% | 4.3% | 0.7% |
| ROIC | 15.0% | 14.4% | 15.8% | 14.9% | 12.5% | -2.4% |
| ROE | 21.2% | 19.8% | 19.7% | 18.0% | 15.4% | -2.6% |
Revenue and profitability
Mcb Bank Ltd's Revenue dropped on 10.7% in 2016.
Net Income marign showed almost no change in 2016.
Capital expenditures (CAPEX) and working capital investments
Mcb Bank Ltd's CAPEX/Revenue was 4.3% in 2016. CAPEX/Revenue decreased slightly on 1.8 pp from 6.1% in 2013 to 4.3% in 2016. Average CAPEX/Revenue for the last three years was 4.4%.
Return on investment
The company operates at good ROIC (12.49%) and ROE (15.37%). ROIC decreased on 2.4 pp from 14.9% to 12.5% in 2016. ROE decreased on 2.6 pp from 18.0% to 15.4% in 2016.
Leverage (Debt)
Debt dropped on 30.5% in 2016 while cash surged on 23.6% in 2016.
Appendix 1: Peers in Banks
Below you can find Mcb Bank Ltd benchmarking vs. other companies in Banks industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kazkommertsbank JSC ($KKB) | | 6.0% | 16.3% | 41.4% | |
| Sberbank Of Russia ($SBER) | 37.2% | 25.1% | 23.4% | 27.4% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | | 23.7% | 18.9% | 26.8% | 27.0% |
| Yapi Ve Kredi Bankasi As ($YKBD) | | 4.8% | 19.7% | 25.3% | 17.8% |
| Halyk Savings Bank Of Kazakhstn JSC ($HSBK) | 3.7% | 9.4% | 16.3% | 19.5% | |
| |
|---|
| Median (43 companies) | 9.0% | 4.8% | 11.5% | 4.2% | 9.7% |
|---|
| Mcb Bank Ltd ($MCBS) | | -1.7% | 19.4% | 22.4% | -10.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Banque Marocaine Du Comm Exterieur ($69IR) | 3.7% | 9.7% | 4.3% | 26.8% | |
| Lloyds Banking Group ($LLPC) | 8.0% | 8.9% | 13.1% | 13.6% | 14.5% |
| Banco Santander Sa ($BNC) | 2.7% | 2.6% | 8.9% | 10.2% | 9.1% |
| Guaranty Trust Bank ($GRTB) | 6.7% | 6.1% | 6.8% | 7.7% | |
| Diamond Bank ($DBPA) | 8.2% | 7.9% | 6.0% | 6.7% | |
| |
|---|
| Median (41 companies) | 2.2% | 2.7% | 2.1% | 2.5% | 1.9% |
|---|
| Mcb Bank Ltd ($MCBS) | 4.4% | 6.1% | 5.2% | 3.6% | 4.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 21.7% | 26.9% | 30.1% | 30.3% | 28.5% |
| Guaranty Trust Bank ($GRTB) | 19.8% | 18.9% | 17.8% | 16.0% | |
| United Bank Ltd ($UBLS) | 11.7% | 11.8% | 13.8% | 12.6% | |
| Zenith Bank ($ZENB) | 19.0% | 17.6% | 15.0% | 11.2% | |
| Halyk Savings Bank Of Kazakhstn JSC ($HSBK) | 8.8% | 9.0% | 12.9% | 10.8% | |
| |
|---|
| Median (43 companies) | 6.0% | 5.3% | 4.4% | 3.4% | 4.4% |
|---|
| Mcb Bank Ltd ($MCBS) | 15.0% | 14.4% | 15.8% | 14.9% | 12.5% |
