MCB Bank Ltd

4Q 2006 Results around the corner….

2nd Asian Emerging Markets Investor’s Forum- Feb’07

Singapore

HK000LN4_SCN_0906
 Disclaimer

THIS PRESENTATION IS BEING PRESENTED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED, REDISTRIBUTED OR
PASSED ON, DIRECTLY OR INDIRECTLY, TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE.

The securities of MCB Bank Limited (the “Company”) have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities
Act"). The securities of the Company may not be offered or sold in the United States, or to or for the account or benefit of U.S. persons (as such term is defined in
Regulation S under the Securities Act), absent registration under the Securities Act or pursuant to an exemption from registration.

Neither this presentation nor any copy of it may be sent, taken, distributed or transmitted, directly or indirectly, in or into the United States, Canada or Japan or
distributed, directly or indirectly, or to U.S. persons (as defined in Regulation S under the Securities Act). The distribution of this presentation in other jurisdictions may
be restricted by law, and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions.

This presentation contains certain “forward looking statements.” These forward looking statements that include words or phrases such as the Company or its
management “believes”, “expects”, “anticipates”, “intends”, “plans”, “foresees”, or other words or phrases of similar import. Similarly, statements that describe the
Company’s objectives, plans or goals also are forward-looking statements. All such forward looking statements are subject to certain risks and uncertainties that could
cause actual results to differ materially from those contemplated by the relevant forward-looking statement. Such forward looking statements are made based on
management’s current expectations or beliefs as well as assumptions made by, and information currently available to, management. The Company, nor any of their
respective affiliates, shareholders, directors, employees, agents or advisers, makes expressed or implied representations or warranties as to the accuracy and
completeness of the information contained herein and none of them shall accept any responsibility or liability (including any third party liability) for any loss or damage,
whether or not arising from any error or omission in compiling such information or as a result of any party’s reliance or use of such information. The information and
opinions in this presentation are subject to change without notice.

No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions contained in this presentation.

By participating in this presentation or by accepting any copy of the slides presented, you agree to be bound by the foregoing limitations.

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 Pakistan: The growth momentum continues into 2007 but not
without challenges….

High GDP Growth Rate – 2004-07E(1) Rapidly Growing FDI Flows (US$ mm)

: 52.3%
12% 4000
CAGR 02-05
3500
10%
3000
8% 2500
6% 2000
4%
1500
1000
2% 500
0% 0
C hina P a k is t a n India H o ng S inga po re Indo ne s ia M a la ys ia P hilippine s
Ko ng 2002 2003 2004 2005 2006

Source: Asian Development Bank Outlook 2006 - update Source: SBP Website FDI Flows Portfolio Investment

Rising Inflation & Current Account Deficit Budget Deficit

7.7% Controlled deficit, owing

to cap on expenditures
9.3% Inflation 6.5% 6.4% and increasing revenue
6.1%
8.0% 6.5% 5.4%
3.8% 4.6% 4.3% 4.3%
3.1% 3.7% 3.3% 3.4%
1.3% 2.4%
2003 2004 2005 2006 2007E
-1.6% -4.4%
-5.5%

Current Account Balance* 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006E
• *% of GDP
• Source: ADB Outlook 2006- update & State Bank of Pakistan (SBP) Source: Economic Survey 3
HK000LN4_SCN_0906
 Strengthened Pakistan Banking Sector

Profitability Capital Adequacy

0.1% 1.2% 1.9% 2.1% 12.7%

1.0%
(0.2%) (0.5%) 11.3%
10.5%
9.7% 9.8%
25.8% 26.1% 8.8% 8.8% 8.5%
20.0% 20.4% 8.3% 8.3%
7.3% 7.6%
3.2% 6.2% 6.5%

(3.5%)
(12.6%)

2000 2001 2002 2003 2004 2005 Sep'06

2000 2001 2002 2003 2004 2005 Sep'06
ROAE ROAA CAR Tier 1

Asset Quality Industry Growth (PKR bn)

3,659

4,005
77% 78%

3,043
70%

3,013
2,834
61% 64%

2,542

2,393

2,347
2,223

2,126
1,964
1,942
1,808

1,715
1,678
1,475
1,341

1,243
1,044

1,062
1,020
21.8% 17.0%
11.6% 8.3% 7.7%

2002 2003 2004 Dec '05 Sep'06 2000 2001 2002 2003 2004 2005 Sep'06

Gross NPL Ratio Coverage Ratio Assets Deposits Loans

Source: SBP, Banking System Review 2005 4

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 Overview of MCB Bank

Snapshot Organizational Structure

Headquarters: Karachi, Pakistan

Banking Operations

Founded: 1947 Wholesale

Network: 125 cities, 994 branches, 262 ATMs, Retail

9,179 employees, 4th Largest Bank in
Pak representing 8%of Total Banking Treasury and Capital Markets
Sector Assets & Deposit Mkt Share.

PKR mm US$ mm Wholly Owned Subsidiaries

100%
MCB Asset Management Co.
Total Assets: 318,949 5,316
100%
MNET Services (Pvt.) Ltd.
Total Loans and 183,582 3,059
100%
Advances (Net): MCB Trade Services Ltd. (HK)
100%
Total Deposits: 251,085 4,185 Muslim Commercial Fin Svcs

ROAA: 3.85% (1)

Associated Companies
ROAE: 52.01% 29%
Adamjee Insurance Co.
27%
No. of Accounts: 4.33 mm First Women Bank
Note: Financial figures as of September 30, 2006
(1) Equity excludes minority interest and revaluation of assets 5
HK000LN4_SCN_0906
 Developments since October’06…
„ MCB Credit Cards launched 16th Dec 2006.

„ Launching Ceremony of MCB Asset Management Company held 16th Dec 2006.

„ FinanceAsia awarded the MCB Bank GDR offering – “Best Pakistan Deal” in Awards for Achievement 2006.

„ Fitch upgraded MCB Bank’s individual rating from D/E to D. Also affirmed MCB’s support rating at 5(January 2007).

„ “The efficiency of Pakistani financial systems has improved as a result of privatization, consolidation and restructuring”
Moody’s outlook for Pakistani banking system termed as ‘stable’ (Jan 2007).

„ In the monetary policy statement for Jan-Jun 2007, SBP announced continuation of the it’s existing tight monetary policy,
increasing the daily minimum requirements to 2% & 6% for time and demand liabilities (from earlier levels of 1% and 4%
respectively). Monetary policy last tightened in July 2006 with the reserve requirements for banks raised to 25% (CRR from 5%
to 7% & SLR from 15% to 18%) for the first time since 2000. The discount rate was increased by 50 bps to 9.5% around the
same time.

„ During the second half of 2006, 5 new M&As took place (including SCB’s US$ 487 million acquisition of Union Bank) and 3
more are known to be in the pipeline (acquisitions by Samba Financial Group SA, NIB (in which Temasek is a major
shareholder) and ABN Amro). Barclay’s & Maybank also showing interest. Minimum capital requirement for Commercial Banks
increasing to Rs. 6Bn by 2009 would prompt further consolidation.

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 New Initiatives: Consumer Products

„ MCB Personal Loan Re-launched May-2006.

MCB Consumer Assets Portfolio – 2003-06(PKR mm)

„ MCB Visa Credit Cards launched 16th Dec 2006.

„ Consumer Market Facts:

: 217%
ƒ Currently 1mn cards issued in Pak (expected to CAGR 03-05 17,900
grow 7-8 times). 17,305
ƒ 0.2 cards per person in Pak compared to 2 across 4061 4921
AsiaPac.
ƒ Consumer Loan Penetration in Pak rose from 0.5%( 12,174
2044 2255
PKR 22.6Bn, 2002) to 3.9% (PKR 318 Bn Sep ‘06) in
2769
2005 –Still lowest in AsiaPac. Expected to grow with
rising per capita incomes. 1629
ƒ Consumer Finance 14.3% of Total 6,725
Advances(Sep’06). 2115 11,143 10,641
ƒ MCB’s Market share of Consumer Loans: 7%. 950 7,710
ƒ Consumer assets 9.35% of MCB’s Advances 1,212 3,602
Portfolio(Dec’06).
797
ƒ Growth in 2007 expected from Credit Cards &
Personal Loans. 2003 2004 2005 Jun'06 Sep'06

Source: SBP Quarterly Performance Review of the Banking Sector Sep-06, ML reports, Credit cards Auto Loans Mortgage Loans Other Personal Loans
MCB.

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 New Initiatives: MCB AMC

„ MCB Asset Management Company, launched on 16th December’06.

„ MCB Bank has injected PKR 300 million capital in the company and has also provided seed capital for
the first two funds.

„ The company plans to offer equity funds, fixed income funds, Islamic funds, balanced funds, capital
guaranteed products, indexed products, FX-linked & structured products and also venture into private
equity. The first two funds, a money market and an equity fund, have been launched.

„ MCB Bank will be acting as the primary distributor of AMCs products and we expect a decent fee
income stream from this business.

„ MCB AMC is actively seeking an international partner & talks are underway with a few reputable
organizations.

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 Sustained Accelerated Growth

Assets (PKR mm) Loans & Advances** (PKR mm)

11~16%
6~11%
: 4.9%
’03 –’05 CAGR 36.2%
299,708 318,949
05 C AGR:
’ 180,323 183,582
272,309 ’03 –
259,274
137,318
7% 97,200
16%
2%
32%

2003 2004 2005 9 mnths 2006 2006E

2003 2004 2005 9 mnths 2006E
2006

Customer Deposits (PKR mm) Equity*(PKR mm)

: 4.0% 9~13%
’05 CAGR
’03– .2%
251,085 5 C AGR: 48 31,893
212,081 221,064 229,340 ’03 – ’0
24,247

14,659
10%
11,035
4% 32%
66%

2003 2004 2005 9 mnths 2006 2006E 2003 2004 2005 9 mnths 2006 2006E
(*) Includes minority interest and surplus on revaluation of assets. Regarding the equity growth indication of 35~40% given from year end 2005 to 2006, please note that it does not
reflect the effect of change in the accounting policy (mentioned in half yearly and third quarter results in notes to the accounts, under the head, Significant Accounting Policies) or the
GDR proceeds but the growth over Dec 2005 without taking into account these two effects. Please note that after taking into account the same, the actual growth in equity would come 35~40%
to around 80~90%.Please refer to our 3rd quarter results for details regarding the same at http://www.mcb.com.pk/quick_links/pdf/3rd%20Qtr%20Sep-2006.pdf 9
**Gross
HK000LN4_SCN_0906
 Profitability Indicators

Net Interest Income(1) (PKR mm) & % of Operating

Income Fee Income (PKR mm) & % of Operating Income
30~36%
43.7% 48% -5~-8%
C AGR:
05 C AGR:
’05 73.6% 81.2% ’03- 2,453
’03 – 60.7% 62.4% 17.7%
15,525 1,992
14,976 1,689
9.4% 12.1%

1,125 8.8%
7,028 24% -32%
7,248 113% 4%

2003 2004 2005 9 mnths 2006 2006E 2003 2004 2005 9 mnths 2006 2006E

Pre-Provision Operating Profit (PKR mm) Net Profit (PKR mm)

25~32%
27~33%
2%
R : 83. 07.5
%
05 CAG R : 1
’03 – ’ AG 9,214 8,956
’05C
–
14,485 ’03
13,755

2,141 2,477 -3%

272%
4,317 4,392 -5%
230%

2003 2004 2005 9 mnths 2006 2006E 2003 2004 2005 9 mnths 2006 2006E

(1) Before provision expenses 10

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 Funding & Operating Efficiencies

Share of Low Cost Deposits(1) Net Interest Margin Cost to Income Ratio

Industry Average(Sep’06): 41.6%

92.6% 93.0% 8.3%
67.3% 66.0%
88.6% 88.4%
6.5%

4.7%
3.8% 33.6%
30.7%

2003 2004 2005 9 mnths 2003 2004 2005 9 mnths 2003 2004 2005 9 mnths
2006 2006 2006

Highest Proportion of Lowest operating expense

Highest NIM in the Industry
Demand Deposits in the Industry margin amongst peers

Note: Peer group consists of National Bank of Pakistan, Habib Bank, United Bank and Allied Bank
Source: Company reports, and SBP review reports
(1) Savings and current accounts as a % of total deposits 11
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 Capitalization Indicators

Capital Adequacy Internal Capital Growth(%)

81.02%

18~20% 42.53%

15.92% 20.52% 21.35%

12.79% 2003 2004 2005 2006

11.61%

9.67% Earnings/Payout (PKR)

25
39.36%
16.58% 20 35.06%
34.03%
12.93%
15
9.53%
8.45% 6.59% 10 18.62%

0
2003 2004 2005 9 mnths 2006 2006E
2003 2004 2005 9 mnths 2006 2006E

EPS(diluted) DPS Dividend Payout

Tier 1 Tier 2

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 Strategic Asset Allocation Underpins High Returns

Superior Investment Portfolio (2005)1 Increasing Profitability

3.85%
49.1%
35.3% 64.82%

18.0% 24.4% 3.19%

14.4%

0.87% 0.96% 52.01%

MCB Bank United Bank National Allied Bank Habib Bank
Bank of
Pakistan

% of Government Securities(2)

High Yield Growing Loan Book 29.95%

28.38%

10.5%
7.9%
6.2%
4.8%
82.0% 76.3%
65.1%
49.0%

2003 2004 2005 9 mnths 2006 2003 2004 2005 9 mnths 2006
(3)
ROAE ROAA
MCB Loans/ Deposit Ratio MCB Loan Yield
(1) Source: Company Reports
(2) Includes Federal investment bonds, Pakistan investment bonds and other government securities
(3) Excludes minority interest and surplus on revaluation of assets 13
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 Loan Portfolio Quality Indicators

Lowest Gross NPL Ratio Superior Coverage Ratio

6.60%
93.1% 96.7%

75.7%
10.58% 61.9% 4.10%
4.70% 4.20%

6.14% 2003 2004 2005 9 mnths 2006

Coverage Ratio LL Res(%) Gross Loans

4.46% 4.25%
Loan Loss Provision Exp & Loan Loss Reserves

7.8%

6.1%

2003 2004 2005 9 mnths 2006

#1 4.0%
2.0%
Healthiest Loan Book in the Industry 0.9% 0.7%
0.3% 0.2%
2003 2004 2005 9 mnths 2006

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HK000LN4_SCN_0906 LLP Exp (%) Pre Prov Income LLP Exp(%) Gross Loans
 Present & Future

Euromoney Awards Strategic Development

„ Development of universal banking model

„ “Best Bank in Pakistan”
Award from Euromoney ¾ Bancassurance and asset management
„ Only bank to receive the
„ Strategic asset allocation
Euromoney Award for
Excellence for the 6th ¾ Captured high loan yield
Best Bank in Pakistan time in the last 7 years
Award – 2006, 2005, „ Position MCB as “Bank of Convenience”
2004, 2003, 2001, 2000

Asia Money Awards Our Future

„ “Best Domestic „ Information System

Commercial Bank” Award ¾ Centralized Systems
from Asiamoney ¾ Growing ATM Network

„ Have retained the title in „ Expanding Product Lines

Pakistan for a third ¾ Thrust on consumer banking, bancassurance
Best Domestic
Commercial Bank straight year and wealth management
Award – „ Customer Service
2006, 2005, 2004
¾ First Pakistan bank to offer 9-5 pm banking
operations
¾ First bank to align interest with insurance
company 15
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 MCB Strategies

Develop “Universal
Financial Services” Model

Maintain Industry Leading

Position MCB as
Efficiencies and
“Bank of Convenience”
Productivity
“To become the preferred provider
of quality financial services in
Pakistan with profitability and
responsibility and to be
the best place to work”

Enhance Risk Further Build out

Management System Technology Platform

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 Financial Highlights – Balance Sheet

PKR mm 2003 2004 2005 9 mnths ‘06 ’03-’05 CAGR

Cash and Balances with
(0.8%)
Treasury Banks 24,054 23,833 23,666 29,822

Investments – Net 128,219 67,242 70,357 66,324 (25.9%)

Loans and Advances – Net 97,200 137,318 180,323 183,582 36.2%

Total Assets 272,309 259,274 299,708 318,949 4.9%

Customer Deposits 212,081 221,064 229,340 251,085 4.0%

Total Liabilities 261,274 244,615 275,461 287,056 2.7%

Equity(1) 11,035 14,659 24,247 31,893 48.2%

(1) Includes minority interest and surplus on revaluation of assets 17

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 Financial Highlights – Income Statement

2003 2004 2005 9 mnths’06 ’03-’05 CAGR

PKR mm

Net Interest Income (1) 7,248 7,028 14,976 15,525 43.7%

Non Interest Income 4,692 4,234 5,382 3,607 7.1%

Operating Revenue 11,940 11,262 20,358 19,132 30.6%

Operating Expense 7,623 7,434 6,563 5,767 (7.2%)

Pre-Provision Operating
83.2%
Profit 4,317 4,392 14,485 13,755

Provision Expenses 781 280 1,144 408 21.0%

Net Income 2,141 2,477 9,214 8,956 107.5%

(1) Before provision expenses 18

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 Industry wise Concentration of Advances

Chemical, 3.29% Textile, 13.78%

Others, 27.99% Cement, 3.81%
Sugar, 4.34%

Financial
Individuals, 8.90% Institutions, 6.84%
Services, 2.37% Production &
Transmission of
Transport, Storage
Energy, 5.07%
& Communication,
13.24% Commerce/Trade,
10.37%

As on June 30’06 19
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 Advances Break-up

Staff Loans, 1.58%

Commodity, 20.70%

Corporate, 44.19%

Consumer, 9.35%

Agriculture, 2.18%

SME, 21.94%

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