Comparison

Between
Annual Reports of
3 Banks
Meezan Bank
Habib Bank Limited.
MCB Bank Limited.

Prepared By:

Afshan Shabbir (M.com)

Introduction
I have been given an assignment for comparison between Annual Reports Of 3 banks. So here,
I am trying to compare the annual reports of 3 banks according to their layout. A country’s
economic growth, among several other factors,based on the financial sector’s performance,
especially financial institutions working in that country. One of them is the banking sector. This
sector can perform an important role in the overall country’s economic performance. So, I have
selected 3 banks to analyze their annual reports according to their layout. These banks are:

1. HABIB BANK Limited (HBL)

2. MEEZAN BANK LIMITED
3. MCB BANK LIMITED

1. Meezan Bank Limited’s Annual Report

Meezan bank was established in 1947 with the vision to “establish Islamic banking as
banking of first choice”. It started commercial banking with a small network of 4 branches that
has now grown to become one of the largest banking networks in the country with 815
branches in over 240 cities.Only some starting pages may be discussed here to analyse how
these 3 different banks took start in their reports.

Meezan bank’s Annual report looks very fascinating; it’s blackish theme is attractive.It consists
of 336 pages. On the title page “ BEST BANK IN PAKISTAN” is written in bold letters, next 3
pages show the pictures of the award ceremony, and then on the next page Table of contents
is presented and then there’s awards pictures everywhere on the next pages. Next page tells
the Vision and Mission of the bank, then the flowchart of Highlights 2020 comes, it tells about
some special features of the bank.On next pages Corporate information shareholders,
Organization structure, Senior Management Team is mentioned. They also have written the
History of Meezan Bank, Products and services and chairman’s overview. And then finally
annual financial statements are presented. After the financial analysis firstly unconsolidated
financial statements are presented and then consolidated financial statements appear.
Meezan Bank also prepared its financial report in Urdu like HBL.

Financial Performance
 ● In 2020, Deposits of the bank grew by a robust 35% to RS.1.25 trillion.The highest
growth since 2008, taking the bank in the league of big banks of Pakistan as
compared to banking industry average growth 22% .
● In 2020, the bank’s Profit after tax increased to Rs.22.17 billion as compared to
Rs.15.23 billion in 2019, it is an impressive growth of 46%.
● Customers of the bank are over 3 million .
● During the pandemic situation in the country 97% increased in digitally enabled
customers.
● Earning per share of the bank is 15.7%.
● Meezan bank is the Best Bank In Pakistan Award Winner For 2020.

2.Habib Bank Limited( HBL)’s Annual Report

Pakistan’s largest bank HBL was the first commercial bank to be established in Pakistan in
1947. Over the years HBL has grown its branches and maintained its position as the largest
private sector bank in Pakistan with over 1700 branches .

HBL’s annual report 2020 is very attractive, the theme and colors made it fascinating. It consists
of 346 pages.Some starting pages may be discussed here, After the title page, 1 page is kept
blank intentionally and then the Table of contents is created, page 4 shows the Corporate
Information, page 5 shows Management information, page 6 tells the Vision and Mission of
the bank, on next page 7 they are explaining their Values, page 8 tells about their 6-Point
Business Agenda, the next page 10 shows the Environment social Governance at HBL, on
page 12 HBL’s International Footprint tells about HBL’s branches, its representative office,
branches of subsidiaries and Affiliates. page 14 shows their Accolades, then on the next page
15 Key Performance Indicators shows the overview of their financial performance, then Board
of Directors names and Chairman’s Message is given. Now finally the financial statements of
the banks for the year 2020 begins. Firstly they have presented Consolidated financial
statements and they have presented Unconsolidated financial statements of the bank . A good
thing is that they have also given the report in Urdu so that it is easy to understand

Financial Performance
 ● In 2020, the total deposit of the bank is increased by 16.1% to over Rs. 2.8 trillion.
● In 2020. HBL has doubled its profit after tax over the previous year to Rs.30.9
billion. Profit after tax for 2020 is Rs.53.0 billion compared to Rs.28.9
billion in 2019.
● During the pandemic situation in 2020 we saw tremendous growth in the take-up of
HBL’s digital offerings. The user base of HBL Mobile and Internet Banking
increased by 52% to 1.8%million users
● HBL is serving 30 million customers across three continents.
● Earning per share is 21.49%

3.MCB Bank Limited’s Annual Report

MCB Bank, is one of Pakistan’s largest & most innovative banks in the private sector. The
The bank operates a strong and vast network of over 1200 ATMs, over 1240 branches in
Pakistan and 11 branches overseas. MCB Bank was declared ‘Best Bank in Pakistan, 2016 .

MCB’s annual report 2020 consists of 444 pages, more lengthy than other 2 reports. Title page
presents “Defining Values” in bold letters. After 2 blank pages Table of contents appears,
then they tell about their Vision, Mission and Strategic Objectives. A fascinating thing is that
they have inserted very beautiful pictures of Pakistan's Big cities and famous places.They also
have mentioned about their Awards that they achieved, they have explained their Product
and Services, then they have mentioned Corporate information, Board of Directors,
Organizational structure, Management committee, Other senior Management, corporate
profile and chairman’s review and President review. Then Highlights 2020 comes where
they have given a brief overview of the bank's financial performance, and after that all the
financial events and performance is explained including analysis of financial statements,
unconsolidated financial statements and consolidated financial statements. MCB also has
issued its report in Urdu language for the ease of readers.

Financial Performance
 ● In 2020 MCB bank reported it’s deposits of 1,290 billion.
● In 2020 MCB bank has reported the increase in it’s profit after tax of 29.04 billion as
compared to 23.97 billion in 2019.
● MCB’s total customer base is exceeding 7 millions.
● Earning per share of the bank is 24.50/share.

Conclusion
All of these three banks have almost the same structure of the report.There’s no big difference
in their format. They have been designed in the same manner, Layout may vary, themes are
different.. All of these banks have also prepared their report in urdu so that readers can easily
understand it.

On the other hand, if we talk about their financial performance we can compare them with each
other. All of these three banks have very different histories, and have very different strategies
for growth. Meezan Bank is a pure-play Islamic bank and while Bank AL Habib and MCB does
have an Islamic banking division, it accounts for a relatively small percentage of its business,
with the bulk of Bank AL Habib’s growth coming from conventional banking.

Meezan bank has been growing faster and is far more profitable than HBL or MCB. In terms of
profitability Meezan bank is easily the single most profitable in the country .

So after this comparison we can conclude that Meezan bank is the largest bank of Pakistan as
it is the winner of “Best Bank in Pakistan for 2020”.