BALANCE SHEET OF MCB 2007
2008
2009
Cash and balances with treasury banks Balances with other banks Lending to financial intuitions
39,683,883
39,631,172
38,774,871
3,807,519 1,051,372
4,043,100 4,100,079
6,009,993 3,000,000
Investments Advances Operating fixed assets Deferred tax assets Other assets
113,089,261 218,960,598 16,024,123 – 17,868,761
96,631,874 262,135,470 17,263,733 – 19,810,476
167,134,465 253,249,407 18,014,896 – 23,040,095
410,485,517
443,615,904
509,223,727
10,479,058 39,406,831 292,098,066 479,232 -
10,551,468 22,663,840 330,181,624 – –
8,201,090 44,662,088 367,604,711 – –
1,180,162 11,722,493 355,365,842 55,119,675
437,137 21,345,781 385,179,850 58,436,054
3,196,743 15,819,082 439,483,714 69,740,013
Share capital Reserves Unappropriateed profit
6,282,768 34,000,638 5,130,750
6,282,768 36,768,765 9,193,332
6,911,045 38,385,760 15,779,127
Surplus on revaluation of assets
45,414,156 9,705,519
52,244,865 6,191,189
61,075,932 21 8,664,081
55,119,675
58,436,054
69,740,013
Assets
Liabilities Bills payable Borrowings Deposits and Other accounts Sub-ordinate loans Liabilities against assets subject to finance lease Deferred tax liabilities Other liabilities
Net assets Represented by:
INCOME STATEMENT 2007
2008
2009
31,786,595 7,865,533 23,921,062
40,043,824 11,560,740 28,483,084
51,616,007 15,841,463 35,774,544
105,269
2,683,994
1,484,218
2,959,583 199 3,065,051
1,335,127 – 4,019,121
5,796,527 41,576 7,322,321
20,856,011
24,463,963
28,452,223
Fee, commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on investment Unrealized loss on revaluation of investments classified as held for trading Other income
2,634,610 632,300 693,408 1,500,865 (13,105)
2,953,394 617,554 727,564 740,429 (103,198)
3,331,856 459,741 341,402 773,768 –
563,213
855,697
736,118
Total non mark up interest income
6,011,291
5,791,440
5,642,885
Income after interest income
26,867,302
30,255,403
34,095,108
Non mark up/interest expense - Administrative expenses - Other proposition/write off -Other charges
5,022,416 (3,743) 540,594
7,546,878 23,135 817,824
10,107,189 142,824 690,150
Total non mark up/ interest expense
5,559,267
8,387,837
10,940,163
– 21,308,035 6,442,356 (1,294,473) 894,590 6,042,473 15,265,562
– 21,867,566 7,341,257 (864,824) 16,533 6,492,966 15,374,600
– 23,154,945 7,703,305 (2,232,226) 2,188,569 7,659,648 15,495,297
Markup/ Markup/ return/ interest earned Mark up/ return/ interest expense Net mark up/ interest income - Provision for dimininution in the value of investment - Provision against loans and advances - Bad debts written off directly
Net mark up/interest income after provisions Non mark up/interest income
Extra ordinary/unusual items Profit before taxation Taxation-Current year -Prior years -Defferd Profit after taxation
Unappropriate profit brought forward Transfer from surplus on revaluation of fixed assets
Profit available for appropriation Basic/diluted earning per share
5,530,973
5,130,750
9,193,332
11,855
21,319
22,324
5,542,828
5,152,069
9,215,656
20,808,390 24.30
20,526,669 22.25
24,710,953 22.42
Common Size Analysis: Vertical Analysis of Balance Sheet (From 2007 to 2009) Analysis Assets Cash and balances with treasury banks Balances with other banks Lending to financial intuitions Investments Advances Operating fixed assets Deferred tax assets Other assets
Liabilities Bills payable Borrowings Deposits and Other accounts Sub-ordinate loans Liabilities Liabilities against assets subject to finance lease Deferred tax liabilities liabilities Other liabilities Net assets Represented by: Share capital Reserves Unappropriateed profit Surplus on revaluation of assets
2007
2008
2009
2007
2008
2009
39,683,883
39,631,172
38,774,871 38,774,871
10%
9%
8%
3,807,519
4,043,100
6,009,993
1%
1%
1%
1,051,372
4,100,079
3,000,000
0%
1%
1%
113,089,261 218,960,598 16,024,123 – 17,868,761
96,631,874 262,135,470 17,263,733 – 19,810,476
167,134,465 253,249,407 18,014,896 – 23,040,095
28% 53% 4% – 4%
22% 59% 4% – 4%
33% 50% 4% – 5%
410,485,517
443,615,904
509,223,727
100%
100%
100%
10,479,058 39,406,831 292,098,066
10,551,468 22,663,840 330,181,624
8,201,090 44,662,088 44,662,088 367,604,711
3% 10% 71%
2% 5% 74%
2% 9% 72%
479,232 –
– –
– –
0% –
– –
– –
1,180,162 11,722,493 355,365,842 55,119,675
437,137 21,345,781 385,179,850 58,436,054
3,196,743 15,819,082 439,483,714 69,740,013
0% 3% 87% 13%
0% 5% 87% 13%
1% 3% 86% 14%
6,282,768 34,000,638 5,130,750 9,705,519
6,282,768 36,768,765 9,193,332 6,191,189
6,911,045 38,385,760 15,779,127 8,664,081
2% 8% 1% 2%
1% 8% 2% 1%
1% 8% 3% 2%
55,119,675
58,436,054
69,740,013
13%
13%
14%
Vertical Analysis of Income Statement: Analysis
Markup/ return/ interest earned Mark up/ return/ interest expense Net mark up/ interest income Provision for bad debts Net mark up/ interest income after provision Total non mark up interest income Non mark up/interest expense Profit Before Taxation Taxation Profit after taxation
2007
2008
2009
2007
2008
2009
31,786,595
40,043,824
51,616,007
84%
87%
90%
(7,865,533)
(11,560,740)
(15,841,463)
-21%
-25%
-28%
23,921,062
28,483,084
35,774,544
63%
62%
62%
(3,061,308)
(4,042,256)
(7,465,145)
-8%
-9%
-13%
20,859,754
24,440,828
28,309,399
55%
53%
49%
6,011,291
5,791,440
5,642,885
17%
13%
10%
(5,563,010)
(8,364,252)
(10,797,339)
-16%
-18%
-19%
21,308,035
21,868,016
23,154,945
56%
48%
40%
(6,042,473) 15,265,562
(6,492,966) 15,374,600
(7,659,648) 15,495,297
-16 40%
-14% 34%
-13% 27%
COMMENTS Vertical analysis of Balance Sheet: ■ Cash is constantly decreasing from year 2007 to 2009; it shows that the liquidity position of the bank is going to be weak, so it is alarming sign for the bank. Therefore bank should take necessary steps according to the position. ■ The with the other is constant form 2007 to 2009. ■ Increase in money at call and short notice, it means that customers of bank are very punctual in making payments. Therefore it is good sign for the bank. ■ In the field of investment there is increasing trend with the passage pa ssage of time. It is common term of finance” more investment more return.
■ As we know that main source of profit of a bank is the difference between the percentages of interest, Banks pay less rate of interest than receiving the interest from the customers. In this case advance to customers are high in 2007 & 2008 but it decrease in 2002. It means that MCB is not running very well.
LIABILITIES ■ There is increasing trend in deposits and other accounts which shows the credibility of the bank. ■ Borrowing Borrowing is decreasing in 2008 but there is increasing trend in the year 2009. Although it is seeing that bank’s borrowing is increasing with the passage of time which is not a good sign but there is a positive thing in this behalf, usually banks borrow money at that time when they would have to give it for earning more profit, I think the MCB BANK LTD. doing the same thing for increasing its profits. ■ Bills payable increase in 2008 & 2009 it is negative sign. Vertical Analysis of Income Statement:
INCOME ■ Interest Interest earned Increase which is a Positive sign. ■ As we know that banks provide many facilities other than money lending and borrowing. Banks receive fee, commission etc. for these services. Therefore fee and commission income are decreasing which is not a favorable signs.
EXPENSES ■ Return on deposit increase which decrease the profit. ■ Administration expenses are increased but no a larming rate.
Trend Analysis: Horizontal Analysis of Balance sheet: Analysis Assets Cash and balances with treasury banks Balances with other banks Lending to financial intuitions Investments Advances
2007
2008
2009
2007
2008
2009
39,683,883
39,631,172
38,774,871
100%
99.9%
98%
3,807,519
4,043,100
6,009,993
100%
106%
158%
1,051,372
4,100,079
3,000,000
100%
390%
285%
113,089,261 218,960,598
96,631,874 262,135,470
167,134,465 253,249,407
100% 100%
85% 120%
148% 116%
Operating fixed assets Deferred tax assets Other assets
Liabilities Bills payable Borrowings Deposits and Other accounts Sub-ordinate loans Liabilities Liabilities against assets subject to finance lease Deferred tax liabilities liabilities Other liabilities Net assets Represented by: Share capital Reserves Unappropriateed profit Surplus on revaluation of assets
16,024,123 – 17,868,761
17,263,733 – 19,810,476
18,014,896 – 23,040,095
100% – 100%
108% – 111%
112% – 129%
410,485,517
443,615,904
509,223,727
100%
108%
124%
10,479,058 39,406,831 292,098,066
10,551,468 10,551,468 22,663,840 330,181,624
8,201,090 44,662,088 367,604,711
100% 100% 100%
101% 58% 113%
78% 113% 126%
479,232 –
– –
– –
– –
– –
– –
1,180,162 11,722,493 355,365,842 55,119,675
437,137 21,345,781 385,179,850 58,436,054
3,196,743 15,819,082 439,483,714 69,740,013
100% 100% 100% 100%
37% 182% 108% 106%
271% 135% 124% 127%
6,282,768 34,000,638 5,130,750 9,705,519
6,282,768 36,768,765 9,193,332 6,191,189
6,911,045 38,385,760 15,779,127 8,664,081
100% 100% 100% 100%
100% 108% 179% 64%
110% 113% 308% 89%
55,119,675
58,436,054
69,740,013
100%
106%
127%
Horizontal Analysis of Income Statement : Analysis
Markup/ return/ interest earned Mark up/ return/ interest expense Net mark up/ interest income Provision for bad debts Net mark up/ interest income after provision Total non mark up interest income
2007
2008
2009
2007
2008
2009
31,786,595
40,043,824
51,616,007
100%
126%
162%
(7,865,533)
(11,560,740)
(15,841,463)
100%
147%
201%
23,921,062
28,483,084
35,774,544
100%
119%
150%
(3,061,308)
(4,042,256)
(7,465,145)
100%
132%
244%
20,859,754
24,440,828
28,309,399
100%
117%
136%
6,011,291
5,791,440
5,642,885
100%
96%
94%
Non mark up/interest expense Profit Before Taxation Taxation Profit after taxation
(5,563,010)
(8,364,252)
(10,797,339)
100%
150%
194%
21,308,035
21,868,016
23,154,945
100%
103%
109%
6,042,473 15,265,562
6,492,966 15,374,600
7,659,648 15,495,297
100% 100%
107% 101%
127% 102%
Comments on HORIZONTAL ANALYSIS
INCOME Interest income increase with great proportion with is favorable. It means that interest received by the bank is increasing with the passage of time. It is not good for a banking company. As we all know that banks provide many services for their customers and also act as a agent of the customer. The banks receive fee and commission after their services; it is a main source of bank to receive fee and commission from their customers. In case bank is taking more fees as compared to previous years. This is good for the bank. EXPENSE Return on deposit decreases which shows good sign and it is due to decrease in return rate. Admin and diminution and provision against non performing loan increasing turned that is favorable. Bad debts increased with huge amount not positive sign. Profit before taxation has increased but not with greater proportion. Tax increases which are not bad because it is interrelated with profit, if profit increased, tax also increase.
RATIOS ANALYSIS: Current Ratio:
The current ratio measures the number of items of the firm s current assets cover its current liabilities. The current ratio should be part of your business' basic financial planning, meaning it should be tracked monthly or quarterly. By keeping a close eye on this figure, you will recognize if it begins to get out of line. This will allow you to take early action to prevent your business from ending up in a difficult position.
Current ratio=current asset/ current liabilities 2007
Current asset
376,592,633
Current liabilities
342,463,187
Current ratio
1.10
2008
Current asset
406,541,695
Current liabilities
363,396,932
Current ratio
1.12
Current asset
468,168,736
Current liabilities
420,467,889
Current ratio
1.11
200
Current Ratio
Year Percentage
2007 1.10
2008 1.12
2009 1.11
Current Ratio 112% 112%
111%
111% 110% 110%
109% 2007
2008
2009
Current Ratio
Quick ratios: Quick ratio shows a firm’s ability to meets it current liabilities with its current assets excluding inventories and prepaid expenses, which are least liquid portion of the current assets. Since banks don’t have any sorts of inventories, therefore only prepaid expenses are subtracted from the current assets of the bank.
Mar ketable Securities/Current Securities/Current Liabilities Quick Ratio = Cash + Account Receivable + Marketable
2007 Cash + Account Receivable +Marketable Securities Current Liabilities Quick Ratio
263,503,372 342,463,187 .77:1
2008
Cash + Account Receivable +Marketable Securities Current Liabilities Quick Ratio
309,909,821 363,396,932 .85:1
2009
Cash + Account Receivable +Marketable Securities Current Liabilities Quick Ratio
301,034,271 420,467,889 .72:1
Quick Ratio
Year Ratio
Graphical representation r epresentation::
2007 .77:1
2008 .85:1
2009 .72:1
Quick Ratio 0.85 0.9 0.85
0.77
0.8 0.72
0.75
Quick Ratio
0.7 0.65 2007
2008
2009
Working Capital: Working capital is the difference between current assets and current liabilities. Working capital is often considered a measure of liquidity by it self. This ratio shows the amount of liquidity. Working capital is used to check liquidity of the organization. Curr ent Assets – Current Liabilities Working Capital= Capital= Current
2007 Current Assets Current Liabilities Working Capital
376,592,633 342,463,187 34,129,446
Current Assets Current Liabilities Working Capital
406,541,695 363,396,932 43,144,763
Current Assets Current Liabilities
468,168,736 420,467,889
2008
2009
47,700,847
Working Capital
Working Capital:
Year Ratio
2007 34,129,446
2008 43,144,763
2009 47,700,847
Graph:
Working Capital 47,700,847
50,000,000 40,000,000
43,144,763 34,129,446
30,000,000 Working Capital
20,000,000 10,000,000 0 2007
2008
2009
Cash Ratio: Cash and equilent are the most liquid assets. The cash ratio shows the proportion of the assets held in the most liquid possible form. It is used to check the liquidity of the organization
Cash Ratio= Cash Equivalents + Marketable Securities/Current Liabilities Liabilities
2007 Cash Equivalent +
43,491,402
Marketable Securities Current Liabilities Cash Ratio
342,463,187 0.13
2008
Cash Equivalent + Marketable Securities Current Liabilities Working Capital
43,674,272 363,396,932 0.12
2009
Cash Equivalent + Marketable Securities Current Liabilities Working Capital
44,784,864 420,467,889 0.11
Cash Ratio
Year Ratio
2007 0.13
2008 0.12
2009 0.11
Graph:
Cash Ratio 0.13 0.12 Cash Ratio
0.11 0.1 2007
2008
2009
Debt to Equity Ratio:
Debt-to-Equity ratio shows the extent to which debt financing is used relative to equity financing. Debt equity is calculated by dividing total liabilities of the bank by the total owner equity.
Debt to equity ratio=Total Liablities / shareholders equity 2007 Total Liabilities Shareholder Equity Debt to Equity Ratio
355,365,842 6,282,768 56.56%
Total Liabilities Shareholder Equity Debt to Equity Ratio
385,179,850 6,282,768 61.30%
Total Liabilities Shareholder Equity Debt to Equity Ratio
439,483,714 6,911,045 64%
2008
2009
Debt to Equity ratio
Year Ratio
2007 56.56%
2008 61.30%
2009 64%
Graph
Debt to Equity Ratio 66.00% 64.00% 62.00% 60.00% 58.00% 56.00% 54.00% 52.00%
Debt to Equity Ratio
2007
2008
2009
Debt Ratio: It shows that how much assets have been financed by liabilities and it also shows the margin of protection available for the creditors.
Debt Ratio: Total Liabilities / Total Assets
2007 Total Liabilities Total Assets Debt Ratio
355,365,842 410,485,517 87%
Total Liabilities Total Assets Debt Ratio
385,179,850 443,615,904 87%
2008
2009
Total Liabilities Total Assets Debt Ratio
439,483,714 509,223,727 86%
Debt ratio
Year Ratio
2007 87%
2008 87%
2009 86%
Graph:
Debt Ratio 88% 87% 87%
Debt Ratio
86% 86% 2007
2008
2009
Return on Investm I nvestment: ent: Return on investment measure the ratio of profit generated in relation to the total assets employed. Net profit after tax divided by total assets gives the return on investment. ROI= ROI= Net Profit after Tax/Average (Long-term Liabilities + Equity) 2007 Net Profit After Tax Average(Long-term Liabilities + Equity) Return On Investment
15,265,562 52,572,491 29%
2008
Net Profit After Tax Average(Long-term Liabilities + Equity) Return On Investment
15,374,600 66,172,297
Net Profit After Tax Average(Long-term Liabilities + Equity) Return On Investment
15,495,297 77,059,770
23.23%
2009
20%
ROI
Year ROI
2007 29%
2008 23.23%
ROI
ROI 40% 20%
ROI
0% 2007 2007 2008 2008 2009 2009
2009 20%
Interest Coverage Ratio Interest coverage ratio shows the ability of a firm to cover up its interest charges on the income before interest and taxes. The ratio is obtained through dividing earning before interest and taxes (EBIT) of the bank by its interest expenses.
EBIT divided by interest expense Interest coverage ratio=EBIT/Interest ratio=EBIT/Interest expense
2007 EBIT Interest Expense Interest coverage ratio
21,308,035 7,865,533 270%
EBIT Interest Expense Interest coverage ratio
21,867,566 11,560,740 189%
EBIT Interest Expense Interest coverage ratio
23,154,945 15,841,463 146%
2008
2009
Interest Coverage Ratio
Year Ratio Graph:
2007 270%
2008 189%
2009 146%
Interest Coverage Ratio 300% 250% 200% 150%
Interest Coverage Ratio
100% 50% 0% 2007
2008
2009
ROA ROA= Net Profit After Tax/Average Total Assets 2007 Net Profit After Tax Average Total Assets Return On Assets
15,265,562 376,296,880 4.1%
Net Profit After Tax Average Total Assets Return On Assets
15,374,600 427,050,710 3.6%
Net Profit After Tax Average Total Assets Return On Assets
15,495,297 476,419,815 3.3%
2008
2009
ROA
Year ROI
2007 4.1%
2008 3.6%
2009 3.3%
ROA 5.00% 4.00% 3.00% ROA
2.00% 1.00% 0.00% 2007
2008
2009
Income/Expense Ratio Income/Expense Ratio= Total Inocme/Operating Expense
2007
Total Income Operating Expense Income/Expense Ratio
29,932,353 5,563,010 5.3 times
Total Income Operating Expense Income/Expense Ratio
34,274,524 8,364,252 4.10 Times
2008
2009
Total Income Operating Expense Income/Expense Ratio
41,417,429 10,797,339 3.83 Times
Income/Expense Income/Expense Ratio R atio
Year
2007 5.3 Times
Income/Expense Ratio
2008 4.1 Times
2009 3.83 Times
Graph
Income/Expense Ratio 6 4 Income/Expense Ratio
2 0 2007
2008
2009
Earning Per Share
Weighted Average Number of Common Earning Per Share=Net Share=Net Income after Tax / Weighted Share Outstanding
2007
Total Income After Tax
15,265,562,000
Weighted Average Number of Common Share Outstanding
628,276,843
Earning Per Share
Rs. 24.30
Total Income After Tax
15,374,600,000
Weighted Average Number of Common Share Outstanding
628,276,843
Earning Per Share
Rs. 24.47
Total Income After Tax
15,495,297,000
Weighted Average Number of Common Share Outstanding
691,104,527
Earning Per Share
Rs. 22.42
2008
2009
Earning Per Share
Year
Earning Per Share
2007
2008
2009
Rs. 24.30
Rs. 24.47
Rs. 22.42
Earning Per Share 25 24 23
Earning Per Share
22 21 2007
2008
2009
Price/Earning Ratio: Ratio: Price/Earning Ratio= Ratio=Market Market Price per Shar e/Diluted e/Diluted Earning Per share 2007 Market Price per Share Diluted Earning Per share Price/Earning Ratio
399.95
24.30 16.5 Times
2008
Market Price per Share Diluted Earning Per share Price/Earning Ratio
125.81
22.25 5.65 Times
2009 Market Price per Share Diluted Earning Per share Price/Earning Ratio
219.68
22.42 9.8 Times
Earning Per Share
Year
Earning Per Share
2007
2008
2009
16.5 Times
5.65 Times
9.8 Times
Price/Earning Ratio 20 15 10 Price/Earning Ratio
5 0 2007
2008
2009
Dividend Payout Ratio Dividend Payout Ratio= Dividend per Common Share/ Diluted Earning Per S hare 2007
Dividend per Common Share Diluted Earning Per share Dividend Payout Ratio
12.50 24.30 51.44%
Dividend per Common Share Diluted Earning Per share Dividend Payout Ratio
11.50 22.25 51.68%
Dividend per Common Share Diluted Earning Per share Dividend Payout Ratio
11.00 22.42 49.06%
2008
2009
Earning Per Share
Year Earning Per Share
2007 51.44%
2008 51.68%
2009 49.06%
Dividend Payout Ratio 52.00% 51.00% 50.00% Dividend Payout Ratio
49.00% 48.00% 47.00% 2007
2008
2009
Dividend Yield Dividend Yield= Dividend per Common Share / Market Price per Common Share
2007
Dividend per Common Share Market Price per Share
Dividend Yield
12.50 399.95 3.13%
2008
Dividend per Common Share Market Price per Share
Dividend Yield
11.50 125.81 9.14%
2009
Dividend per Common Share Market Price per Share
Dividend Yield
11.00 219.68 5%
Earning Per Share
Year Earning Per Share
2007 3.13%
2008 9.14%
2009 5.00%
Dividend Yield 9.14% 10.00% 8.00%
5.00%
6.00% 4.00%
3.13%
Dividend Yield
2.00% 0.00% 2007
2008
2009
Comment on Ratio Analysis:
1. Current Ratio: In MCB bank limited 2008s current ratio is strong than other two years. It shows that this year’s liabilities could be recovered with its assets. After 2008, a bank has maintained good current ratio in 2009
Current ratio does not show the true picture of the organization. Sometimes it shows that organization has ability to pay its obligations but its profitability ratio tells that it has not ability to pay its obligation. But st ill it is very useful for the analysts especially for the creditors. 2. Quick Ratio: Prepaid expenses are considered as current a ssets so they are included in current r atio calculation.
Prepaid expenses are less liquid. Normally it is not easily converted into cash on short notice. In 2008 quick ratio is better than other years it show that bank can easily recover its liabilities on short notice. 3. Working Capital: Capital :
Working
capital
is
better
in
2009,
which
is
47,700,847.
It
means
that
are
assets utilized more economically in 2009 as compared to 2007, 2008. 4. Cash Ratio: Higher
cash
ratio
also
shows
the
higher
rate
of
satisfaction
like
other
liquidity
ratios. Cash ratio is more important liquidity ratio. Cash ratio is higher in 2007 as compared to 2008 & 2009. 5. Debt Ratio: Financial leverage leverage is the extent to which which a firm is financed with with debt.. In Muslim Commercial bank, years 2007 & 2008 were financed with debt as compare to year 2009. 6. Debt to Equity Ratio: The debt equity ratio is a simple rearranged of the debt ratio. Debt equity ratio shows how the firm’s stockholder bears the risk of the firm. Greater the debt greater risk for the firm s shareholders .In 2007 risk for the share holders was very low as compared to the year 2009. 7. Return on Investment:
This ratio is more meaningful for share holders who are interested to know the profit earned by the company because the dividend paid from available profit higher ratio means factor of production fully utilized and good position. Here return on Investment is higher in 2007 as compare to year year 2008 & 2009. 8. Interest Coverage Ratio:
Coverage ratio shows the number number of the times a firm can recover or meet particular financial obligations. The interest coverage ratio, which is also called the time interest earned ratio, measure the coverage of the firm s interest expense. Year 2007 is better in interest coverage ratio as compare to the other years. 9. Return on Assets:
This ratio has a decreasing trend. It means the assets of the business are not fully utilized in more and efficient way and also shows an unfavorable trend of the business. This ratio of the bank was too low in the year 2009, as compare to other two years. 10. Interest to Expense Ratio: The interest to expense ratio is the profitability ratio. The more the good ratio means that the business is running well. The Interest to expense ratio of the MCB is not good as compare the year 2007, 2008. 11. Earning per Share:
This ratio got really improved as it has gone with the increase in profit. Earning per share
is a good measure of profitability when compared with similar other business. Here decreasing EPS, which will surely decrease share price. This ratio has the same trend as the return on the assets. 12. Price earning Ratio: Price earning ratio of MCB bank is high in 2007 as compared to the other years. Because the market price per share is high in 2007. Because in this year MCB generate an excellent profit. 2009 is also good but 2008 is worst all of them. 13. Dividend Payout Ratio: The dividend payout ratio of the MCB is almost constant for the years 2007, 2008, 2009. 14. Dividend Yield Ratio: The dividend yield ratio of the MCB is higher in 2007 because the share price was higher in 2007. Dividend yield Ratio is good in 2009 and worst at all in year 2008.
