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    P.A (MCB)

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    Muheeb Ahmad
    The document analyzes the performance of MCB Bank from 2006 to 2009 using various financial metrics. It shows that MCB's turnover and profit after tax increased each year, while inflation increased significantly from 2008 to 2009. MCB's share price fluctuated, increasing from 2006 to 2007 and 2009 to 2009 but decreasing from 2007 to 2008. The stock market index also fluctuated over this period. The document calculates MCB's equity beta of 1.31 using the capital asset pricing model and compares its expected return to its actual return, finding the return to be acceptable.

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    P.A (MCB)

    Uploaded by

    Muheeb Ahmad
    15 views9 pages
    The document analyzes the performance of MCB Bank from 2006 to 2009 using various financial metrics. It shows that MCB's turnover and profit after tax increased each year, while inflation increased significantly from 2008 to 2009. MCB's share price fluctuated, increasing from 2006 to 2007 and 2009 to 2009 but decreasing from 2007 to 2008. The stock market index also fluctuated over this period. The document calculates MCB's equity beta of 1.31 using the capital asset pricing model and compares its expected return to its actual return, finding the return to be acceptable.

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    The document analyzes the performance of MCB Bank from 2006 to 2009 using various financial metrics. It shows that MCB's turnover and profit after tax increased each year, while inflation increased significantly from 2008 to 2009. MCB's share price fluctuated, increasing from 2006 to 2007 and 2009 to 2009 but decreasing from 2007 to 2008. The stock market index also fluctuated over this period. The document calculates MCB's equity beta of 1.31 using the capital asset pricing model and compares its expected return to its actual return, finding the return to be acceptable.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    15 views9 pages

    P.A (MCB)

    Uploaded by

    Muheeb Ahmad
    The document analyzes the performance of MCB Bank from 2006 to 2009 using various financial metrics. It shows that MCB's turnover and profit after tax increased each year, while inflation increased significantly from 2008 to 2009. MCB's share price fluctuated, increasing from 2006 to 2007 and 2009 to 2009 but decreasing from 2007 to 2008. The stock market index also fluctuated over this period. The document calculates MCB's equity beta of 1.31 using the capital asset pricing model and compares its expected return to its actual return, finding the return to be acceptable.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 9

    Performance Assessment

    Rs. In Million
    MCB
    2006 2007 2008 2009
    Turnover 25,778 31,787 40,044 51,616
    Profit After Tax 12,142 15,266 15,375 15,495
    Inflation 9.10 7.90 7.60 20.30 http://www.indexmundi.com/pakistan/inflation_rate_(consumer_prices).html
    Share Price of MCB 246.10 399.95 125.81 219.68
    Average Price of Sector 68.56 82.17 25.64 37.24
    Stock Mkt Index 10,040 14,077 5,885 9,386 http://www.zhvsec.com/kseindex-history.aspx
    Equity Beta (β) 1.31
    Risk Free Rate 14.25%
    CALCULATION of Beta
    MCB
    Date rj rm rf M = rm - rf K = rj - rf M×K M2
    2006-2007 62.52 19.86 14.25 5.61 48.27 270.94 31.51
    2007-2008 -68.54 -68.80 14.25 -83.05 -82.79 6875.89 6897.06
    2008-2009 74.61 45.24 14.25 30.99 60.36 1870.85 960.60
    22.86 -1.23
    Σ -46.44 25.83 9,017.68 7,889.18

    Σmk-nM K
    β= ΣM2 - n(M)2
    Where n 3.00 Σm -46.44
    Σk 25.83 Σmk 9017.68
    Σm2 7889.18 M -15.48
    K 8.61

    9,417.60
    β= 7,170.24

    = 1.31
    Performance Assesment of MCB
    Index Trend Model
    (pn /po) × Growth Index Trend Alpha
    (cl-op) / op × 100
    100
    Exp.
    Variables 2006 2007 2008 2009 2006-07 2007-08 2008-09 Co. rf CAPM Alpha Decesion Status
    Return
    Turnover 100.00 123.31 155.34 200.23 23.31 25.98 28.90 MCB 14.25 -1.23 -6.08 4.85 Acceptable Reject
    Profit After Tax 100.00 125.73 126.63 127.61 25.73 0.71 0.78
    Inflation 100.00 86.81 83.52 223.08 -13.19 -3.80 167.11
    Share Price of MCB 100.00 162.52 51.12 89.26 62.52 -68.54 74.61 CAPM = rf + β(rm - rf)
    Average Price of Sector 100.00 119.86 37.40 54.32 19.86 -68.80 45.24
    Stock Mkt Index 100.00 140.21 58.62 93.49 40.21 -58.19 59.49 CAPM = -6.08

    rm = -1.23

    rj = 22.86

    RFDI = rj - rf
    β
    RFDI = 7 Times
    Growth Index Trend Model (Turnover & EAT) (Turnover & Inflation) (Share Price & Stock Market Index)

    35.00 200.00 100.00


    80.00
    30.00
    150.00 60.00
    25.00
    40.00
    20.00 100.00 Turnover Share Price of MCB
    Turnover
    Inflation 20.00 Stock Mkt Index
    15.00 Profit After Tax
    50.00 0.00
    10.00
    -20.00-07 -0
    8
    -0
    9
    5.00 06 07 08
    0.00 20
    -40.00 20 20
    0.00
    7 8 9
    07 08 09 -0 -0 -0 -60.00
    6- 7- 8- 06 07 08
    00 00 00 20
    -50.00 20 20 -80.00
    2 2 2

    (Turnover & EAT) (Turnover & Inflation) (Share Price & Stock Market Index)
    250.00 250.00 180.00
    Index Trend Model

    160.00
    200.00 200.00
    140.00
    120.00
    150.00 150.00
    Turnover Turnover 100.00 Share Price of MCB
    Profit After Tax Inflation Stock Mkt Index
    100.00 100.00 80.00
    60.00
    50.00 50.00 40.00
    20.00
    0.00 0.00 0.00
    6 7 8 9 6 7 8 9
    0 0 0 0
    20
    0
    20
    0
    20
    0
    20
    0 06 07 08 09
    20 20 20 20 20 20 20 20
    Closing Price

    L
    BO
    M
    2006 2007 2008 2009

    SY
    ABL 93.50 130.15 31.32 58.73
    ACBL 104.95 99.50 14.57 27.30
    ATBL 14.60 17.00 3.32 3.44
    BAFL 41.80 53.70 16.73 13.77
    BAHL 68.50 77.20 24.87 32.76
    BIPL 10.30 16.20 7.25 5.87
    BOK 15.75 15.50 6.41 4.91
    BOP 101.25 97.80 13.20 19.50
    CCBL 15.10 20.95 11.51 17.53
    FABL 60.50 65.95 74.86 123.44
    HMB 72.00 70.95 26.33 31.15
    KASBB 16.25 20.20 18.56 7.49
    MCB 246.10 399.95 125.81 219.68
    MEBL 19.55 38.50 21.48 15.74
    MYBL 24.20 23.95 50.32 74.37
    NBP 224.25 232.15 4.67 4.80
    NIB 24.40 21.85 8.65 8.95
    SNBL 47.65 43.40 11.00 11.07
    SPCB 16.95 25.65 5.01 5.83
    UBL 153.50 172.90 36.91 58.45
    Average 68.56 82.17 25.64 37.24
    Banks & Symbol
    S COMPANY
     ABL Allied Bank Ltd.
     AKBL Askari Bank

     ATBL Atlas Bank Ltd

     BAFL Bank Al-Falah


     BAHL Bank AL-Habib
     BIPL Bankislami Pakistan
     BOK Bank Of Khyber
     BOP B.O.Punjab
     FABL Faysal Bank XB
     FCIBL F.Credit & Inv
     HBL Habib Bank Ltd.
     HMB Habib Metro Bank
     JSBL JS Bank Ltd
     KASBB KASB Bank Ltd.
     MCB MCB Bank Ltd.XD
     MEBL Meezan Bank Ltd.
     MYBL Mybank

     NBP National Bank

     NIB NIB Bank

     NMBL Network Mic Bank


     RBS Royal Bank
     SBL Samba Bank
     SCBPL Stand.Chart.Bank
     SILK SilkBank Limited
     SMBL Summit Bank Ltd
     SNBL Soneri Bank Limited
     UBL United Bank Ltd.
     KSE Index History Report

    Date Open High Low Close Change


    12/29/2006 10,058 10,105 10,028 10,040 -17.00
    12/31/2007 14,772 14,772 14,061 14,077 -694.00
    12/31/2008 6,037 6,037 5,885 5,885 -138.00
    12/31/2009 9,507 9,525 9,354 9,386 -121.00

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