MCB Bank Limited

Last updated
MCB Bank Limited
Public
Traded as PSX:  MCB
Industry Banking
Founded1947 by
Founder Adamjee Haji Dawood
Headquarters
Lahore
,
Pakistan
Key people
 Mian Muhammad Mansha (Chairman) [1] page 32.
ProductsLoans, credit cards, savings, consumer banking, Home Remittance etc.
RevenueIncrease2.svg₨66.43 billion (US$470 million) - 2015 [2]
Increase2.svg₨25.55 billion (US$180 million) - 2015 [2]
Parent Maybank (18.78%) [3]
Nishat Group
Website www.mcb.com.pk
MCB Tower in Karachi, Pakistan Mcbtower1.jpg
MCB Tower in Karachi, Pakistan

MCB Bank Limited is a Pakistani commercial bank which is based in Lahore, Pakistan. The majority of shares are owned by Malaysian bank Maybank and Pakistani conglomerate Nishat Group.

A commercial bank is a type of bank that provides services such as accepting deposits, making business loans, and offering basic investment products that is operated as a business for profit.

Lahore Metropolitan area in Punjab, Pakistan

Lahore is the capital of the Pakistani province of Punjab. Lahore is the country's second-most populous city after Karachi. Lahore is one of Pakistan's wealthiest cities, with an estimated GDP of $58.14 billion (PPP) as of 2015. Lahore is the largest city, and historic cultural centre of the Punjab region, and one of Pakistan's most socially liberal, progressive, and cosmopolitan cities.

Maybank Malaysian universal bank

Malayan Banking Berhad is a Malaysian universal bank, with key operating "home markets" of Malaysia, Singapore, Philippines and Indonesia. According to the Brand Finance report, Maybank is Malaysia's most valuable bank brand, the fifth top brand in Asean and ranked 83rd in the world’s most valuable bank brands.

Contents

It was incorporated by the Adamjee Group on July 9, 1947. The bank was established to provide banking facilities to the business community of South Asia. The bank was nationalized in 1974 during the government of Zulfikar Ali Bhutto. This was the first bank to be privatized in 1991 and the bank was purchased by a consortium of Pakistani corporate groups led by Nishat Group. As of June 2008, the Nishat Group owns a majority stake in the bank. The president of the bank is Imran Maqbool.

Incorporation (business) forming of a new corporation

Incorporation is the formation of a new corporation. The corporation may be a business, a nonprofit organization, sports club, or a government of a new city or town.

Adamjee Group of Companies is a conglomerate company based primarily in Karachi, Pakistan. The group was headed by Sir Adamjee Haji Dawood.

Zulfikar Ali Bhutto Fourth President and ninth Prime Minister of Pakistan

Zulfikar Ali Bhutto was a Pakistani barrister and politician who served as the 9th Prime Minister of Pakistan from 1973 to 1977, and prior to that as the 4th President of Pakistan from 1971 to 1973. He was also the founder of the Pakistan People's Party (PPP) and served as its chairman until his execution in 1979.

The group has a presence in the business sectors of the country such as banking, textile, cement, and insurance. Mian Muhammad Mansha is chairman of both the group and MCB. The bank has established an Islamic Banking unit to offer Shariah-compliant products and services, with dedicated Islamic banking branches in six cities

Mian Muhammad Mansha is a Pakistani business magnate and billionaire. He is the founder and CEO of the Lahore-based international conglomerate Nishat Group. Mansha is the richest and highest tax-paying individual in Pakistan.

In 2005, the management of the bank abbreviated its name from Muslim Commercial Bank Limited to MCB Bank Limited to explore international markets; they were facing resistance due to the word Muslim especially from Western Countries to avail license. In 2008 the head office of MCB was shifted from Karachi to Lahore in a newly constructed building, namely MCB House located at Sharea Ghous-ul-Azam, commonly known as Jail Road.

MCB, advised by Merrill Lynch, became the fourth Pakistani company (the other three being Hubco, PTCL and Chakwal cement; they all have been delisted) to list on the London Stock Exchange when it raised US$150 million global depositary receipts.

London Stock Exchange Stock exchange in the City of London

London Stock Exchange is a stock exchange located in the City of London, England. As of April 2018, London Stock Exchange had a market capitalization of US$4.59 trillion. It was founded in 1571, making it one of the oldest exchanges in the world. Its current premises are situated in Paternoster Square close to St Paul's Cathedral in the City of London. It is part of London Stock Exchange Group (LSEG).

History

Change of name to MCB Bank Limited

In year 2005, the name of the bank was changed from "Muslim Commercial Bank Limited" to "MCB Bank Limited". This need was felt because the bank was already known and popular as "MCB" among its clients and the public, and most people would refer it to as MCB instead of its full name. [4]

Maybank's acquisition of 20% stake in MCB

In 2008, the Maybank (Malaysia) announced acquisition of 20% of stake in MCB Bank Limited’s equity by purchasing a little more than 94 million ordinary shares from the Nishat Group. This transaction amounted to MYR 2.17 billion (US$686 million) in value. Price paid by the Maybank was Pak. Rupees 470 per ordinary share of MCB. As per Maybank, “The acquisition is in-line with Maybank’s strategy, as Malaysia’s financial services leader in the region, to build its presence in key growth markets across the region.” [5]

Islamic Banking Business

In year 2000, the bank established its Islamic Banking Business Group and opened its first branch in 2003, [6] by 2014 the Islamic Banking network had grown to 34 branches. [7] This was in addition to and separate from bank's 1,100 conventional banking branches. [7] In 2015, given the potential of Islamic Banking business, the bank proceeded to establish an independent but wholly owned subsidiary bank [8] [9] named "MCB Islamic Bank Limited", referred to as "MIB "in short. MCB Bank Ltd appointed Raza Mansha as its first Chairman of the Board of Directors and Ali Muhammad Mahoon as the first President of the MIB. [10]

Credit rating

Long Term Credit Rating of MCB Bank Ltd is June 19, 2017, maintained at AAA [Triple A] and Short-Term Credit Rating of the bank is maintained at A1+ [A one plus] by Pakistan Credit Rating Agency (PACRA). [1] [11]

See also

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References

  1. 1 2 "Annual Report 2017" (PDF). Mcb.com.pk. Retrieved 28 June 2019.
  2. 1 2 "MCB Annual Report 2015" (PDF). MCB.com.pk. Retrieved 10 April 2016.
  3. ↑ https://www.mcb.com.pk/assets/documents/MCB-2018-Annual-Report.pdf
  4. ↑ "Annual Report 2005" (PDF). Mcb.com.pk. Retrieved 28 June 2019.
  5. ↑ "Maybank2u". Maybank2u.com.my. Retrieved 2019-06-28.
  6. ↑ "MCB to expand Islamic banking services". Business Recorder. 2005-03-03. Retrieved 2019-06-28.
  7. 1 2 "Annual Report 2014" (PDF). Mcb.com.pk. Retrieved 28 June 2019.
  8. ↑ "MCB sets up Islamic banking subsidiary". Thenews.com.pk. 2015-09-15. Retrieved 2019-06-28.
  9. ↑ "MCB sets up Islamic banking subsidiary". Thenews.com.pk. 15 September 2015. Retrieved 28 June 2019.
  10. ↑ "Annual Report 2015" (PDF). Mcbislamicbank.com. Retrieved 28 June 2019.
  11. ↑ "Pakistan Credit Rating Agency(PACRA)". Pacra.com.pk. Retrieved 2019-06-28.
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