full year results for fy 2018/19 investor meeting ... investor meeting & earnings call...

Full year results for FY 2018/19 Investor Meeting & Earnings call presentation

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8 October 2019

Profitability

2

5.76.6 6.7

7.2

9.5

0

3

6

9

12

Jun 15 Jun 16 Jun 17 Jun 18 Jun 19

Rs

bill

ion

Operating income (i)

3

13.214.4

15.517.0

20.2

90

110

130

150

170

190

0

5

10

15

20

25


Ind

ex:

Ju

n 1

5 =

10

0

Rs

bill

ion

Net interest income Non-interest income

Net interest income Growth Index Non-interest income Growth Index

Operating income (ii)

4

20,226 + 19.3%

10,000

12,000

14,000

16,000

18,000

20,000

22,000

Operating income30 Jun 18

Net interest income Net fee andcommission income

Profit from forexdealings/Net gain onfinancial instruments

Other income Operating income30 Jun 19

Rs

mill

ion

353 + 10.3%

16,951

2,228 + 20.8%

182 + 23.2%

513 + 25.6%

Net interest income

5

8.28.9

9.6

10.7

13.0

80

100

120

140

160

180

200

220

0

2

4

6

8

10

12

14


Ind

ex:

Ju

n 1

5 =

10

0

Rs

bill

ion

MUR FCY MUR Growth Index FCY Growth Index

Gross loans

6Note: Figures exclude Corporate Notes.

241

104

107 107111

117

176 174 178

211

242

80

100

120

140

160

180

200

0

50

100

150

200

250

300


Ind

ex:

Ju

n 1

5 =

10

0

Rs

bill

ion

Gross loans

MUR FCY MUR Growth index FCY Growth index

72 67 71

100125

Deposits

7

136 152 170 187

200

221

255275

298

332

90

100

110

120

130

140

150

160

0

50

100

150

200

250

300

350


Ind

ex:

Ju

n 1

5 =

10

0

Rs

bill

ion

Deposits

MUR FCY MUR Growth Index FCY Growth Index

85103

105

111

132

Loans and funding base

8Note: Figures for Gross loans exclude Corporate Notes.

70.9% 72.9%

66.0%61.0%

0

20

40

60

80

0

100

200

300

400


%

Rs

bill

ion

Loans and funding base

Loans Deposits

Borrowings Debt instruments

Loans to deposits ratio (%) Loans to funding base ratio (%)

Liquidity position

9Note: Liquid assets comprise cash, balances with BoM, placements, T-Bills, Government securities and bonds.

4259

7289

10522

28

52

5538

20

30

40

50

60

70

80

0

30

60

90

120

150

180


%Rs

bill

ion

Liquidity position

Liquid assets - MUR Liquid assets - FCY Liquid assets to deposits ratio (right scale)

6275

92109 114

27

50

5436

69

0

20

40

60

80

100

0

40

80

120

160

200


%Rs

bill

ion

Liquidity position

89

125

146 145

183

Assets mix

10


Other assets

16%

16%

60%

18%

21%

54%

8%

19%

18%

8%

55%

8%

22%

20%

50%53%

18%

21%

8% 7%

Jun 15 Jun 16 Jun 17 Jun 18

Other assets

Cash and cash equivalents (incl. mandatory balances & placements)

Investment securities (excl. shares & corporate notes)

Net loans and advances


Other assets





Other assets





Net loans and advances (incl. corporate notes)

Margin

11

3.613.41 3.32 3.47 3.59

0

1

2

3

4

5


%

Net interest margin to average earning assets

Evolution of T-Bills rate v/s savings rate

12

0

1

2

3

4Ju

n-1

7

Au

g-17

Oct

-17

Dec

-17

Feb

-18

Ap

r-18

Jun

-18

Au

g-18

Oct

-18

Dec

-18

Feb

-19

Ap

r-19

Jun

-19

Au

g-19

Oct

-19

%

MCB Savings rate Overall weighted yield

1.75

2.78

Non-interest income (i)

13Note: Non-interest income does not include share of profit of associates

5.15.5

5.96.2

7.3

80

100

120

140

160

0

2

4

6

8


Ind

ex: J

un

15

= 10

0

Rs

bil

lio

n

Non-interest income Non-interest income Growth Index

Non-interest income (ii)

14

5.15.5

5.96.2

7.3

60

100

140

180

220

0

2

4

6

8


Ind

ex:

Ju

n 1

5 =

10

0

Rs

bil

lio

n

Other income


Other incomeProfit from forex dealings/Net gain on financial instrumentsNet fee and commission incomeNet fee and commission income Growth IndexProfit from forex dealings/Net gain on financial instruments Growth index

















Contingent liabilities

15

52.4

37.3

52.7

68.6

77.3

0

15

30

45

60

75

90


Rs

bill

ion

Operating expenses

16


Others Depreciation/Amortisation Staff Growth Index


Others Depreciation/Amortisation Staff Growth IndexJun 15 Jun 16 Jun 17 Jun 18 Jun 19




100

5.5 5.8

6.46.8

7.5

80

100

120

140

160

0

2

4

6

8


Ind

ex:

Ju

n 1

5 =

10

0

Rs

bill

ion

57%

13%

30%

56%

14%

30%

56%

13%

31%

57%

13%

30%

57%

13%

30%

Cost to income ratio

17

41.840.1

41.240.1

37.1

25

30

35

40

45

50


%

Credit impairment charges

18Note: Credit impairment charges relate to loans & advances (including corporate notes)

0.650.57 0.59

0.61 0.59

0.0

0.2

0.4

0.6

0.8

1.0

0.0

0.4

0.8

1.2

1.6

2.0


%

Rs

bill

ion

Credit impairment charges

As a % of gross loans and advances (right scale)

Credit quality

19

6.2 6.2 6.2

4.5

4.13.64.1 4.6

3.12.9

0

2

4

6

8

10


%Credit quality

Gross NPLs to gross loans and advances Net NPLs to net loans and advances

Share of profit of associates

20

Non-Banking Banking Non-Banking Banking

375

735

338 307404

-200

0

200

400

600

800


Rs

mil

lio

n

Tax charges

21

16.4%

18.4%19.6%

20.7%

16.8%

5

10

15

20

25

30

0

400

800

1,200

1,600

2,000


Effe

ctiv

e t

ax

rate

(%)

Rs

mill

ion

Tax charges Effective tax rate (right scale)

Profit distribution

Jun 19

22

Jun 18

39%

44%

11%

6%

MCB Ltd - Seg A

MCB Ltd - Seg B

Foreign banking subsidiaries & associates

Non-banking financial & other investments

MCB Ltd - Seg A

MCB Ltd - Seg B



MCB Ltd - Seg A

MCB Ltd - Seg B



MCB Ltd - Seg A

MCB Ltd - Seg B



Non-banking financial & other investments43%

40%

9%

8%

Rs 7.2 bn Non-banking financial & other investments

31%

55%

6%8%

MCB Ltd - Seg A MCB Ltd - Seg B

Rs 9.5 bn

Capital adequacy

23Note: Capital adequacy figures are based on Basel III

Jun 12 Jun 13 Jun 14 Jun 15 Mar 16

Tier 2 Tier 1 BIS ratio (right-scale) Tier 1 ratio (right-scale)





8

10

12

14

16

18

20

22

0

10

20

30

40

50

60

70


%

Rs

bil

lio

n 4246

17.1%

15.3%

50

55

60

17.4%

15.8%

ROE & ROA

24

2.2 2.2

2.0 2.0

2.2

17.1 17.3

15.5 14.8

17.6

4

8

12

16

20

1.0

1.5

2.0

2.5

3.0


RO

E; %

RO

A;

%

ROA (Left scale) ROE (Right scale)

Earnings per share

25

24.04

27.82 28.1030.26

39.70

0

10

20

30

40

50


Rs

EPS

Note: Figures relate to Diluted EPS

Dividend per share

26

8.008.75

9.2510.00

13.00

0

5

10

15


Rs

DPS

Share price performance

27

80

90

100

110

120

Jun

-18

Jul-

18

Au

g-1

8

Sep

-18

Oct

-18

No

v-1

8

De

c-1

8

Jan

-19

Feb

-19

Ma

r-1

9

Ap

r-1

9

Ma

y-1

9

Jun

-19

Jul-

19

Au

g-1

9

Sep

-19

Oct

-19

Ind

ex:

30

Jun

20

18

= 1

00

MCB Group share price index SEMDEX (rebased)

Thank you

Website: www.mcbgroup.comContact details: [email protected]

28

full year results for fy 2018/19 investor meeting ... investor meeting & earnings call...

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