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Annual Report 20


Smooth sailing all the way

Full steam aheadMCBs leadership - steering customers through new waves of success.

Taking command of every situation

Annual Report 2006

It comes from p


anning ahead of time

It comes from k


eping a steady course

It comes from t


king on challenges

It comes from a


ding value to our service

It comes from s

curing common interests

It comes from b


idging the distances

It comes from a

sociating with you


Navigating to achieve consistent success

Annual Report 2006

VisionChallenging and Changing the way you bank

MissionMCB Banks team of committed professionals is dedicated to maintaining long-term customer relationships through outstanding service and convenience

Core Values Trust Customer Focus Innovation 05

Teamwork Achievement Social Responsibility

Shining through

when it matters, where it matters

Annual Report 2006

Corporate InformationBoard of Directors Mian Mohammad Mansha Chairman S. M. Muneer Vice Chairman Tariq Rafi Shahzad Saleem Sarmad Amin Mian Umer Mansha Aftab Ahmad Khan Atif Yaseen Dr. Muhammad Yaqub Mohammad Aftab Manzoor President & Chief Executive Advisor Raza Mansha Audit Committee Dr. Muhammad Yaqub - Chairman Tariq Rafi - Member Main Umer Mansha - Member Aftab Ahmad Khan - Member Chief Financial Officer Ali Munir Secretary Tahir Hassan Qureshi Auditors KPMG Taseer Hadi & Co. Chartered Accountants Riaz Ahmad & Co. Chartered Accountants Legal Advisors Mandviwalla & Zafar Advocates & Legal Consultants Registered Office MCB Building, F-6/G-6, Jinnah Avenue, Islamabad. Principal Office MCB Tower, I. I. Chundrigar Road, Karachi. Registrar's and Share Registration Office THK Associates (Pvt.) Ltd., Shares Department, Ground Floor, State Life Building No.3, Dr. Ziauddin Ahmed Road, Karachi.


Annual Report 2006

We give direction to your financial vision

Contents16 20 22 23 24 25 26 27 29 31 98 Directors' Report to Members Six Years Progress Statement of Compliance with the Code of Corporate Governance Auditors' Review Report to the Members Auditors' Report to the Members Balance Sheet Profit & Loss Account Cash Flow Statement Statement of Changes in Equity Notes to the Financial Statements Branch Network 99 102 103 106 107 108 109 110 112 114 171 Pattern of Shareholding Categories of Shareholders Notice of Annual General Meeting Directors' Report on Consolidated Financial Statements Auditors' Report to the Members Consolidated Balance Sheet Consolidated Profit & Loss Account Consolidated Cash Flow Statement Consolidated Statement of Changes in Equity Notes to the Consolidated Financial Statements Form of Proxy


Guiding you to the shores of security

Annual Report 2006

Management Committee(left to right) Mohammad Aftab Manzoor, Ali Munir, Ali Muhammad Mahoon, Aamer Hassan Zaidi, Tahir Ayub, Tahir Hassan Qureshi, Salman Ahmed Usmani, Shahid Sattar, Agha Saeed Khan, Sadia P. Saeed.


Annual Report 2006

Board of Directors(Starting from the top) (from left to right) Mian Mohammad Mansha, S. M. Muneer, Dr. Muhammad Yaqub, Mian Umer Mansha, Shahzad Saleem, Atif Yaseen, Tariq Rafi, Sarmad Amin, Aftab Ahmad Khan, Mohammad Aftab Manzoor.


Products and ServicesThe largest network of over 600 online branches in the country and growing. Providing customers with 24/7 real time online transaction facilities.

Enjoy the convenience of extended banking hours from 9 to 5, even on Saturdays. To satisfy your banking needs at all MCB Full Day Banking branches across the country we now serve you a wide range of services throughout the day. A deposit account for customers with substantial balances, offering profit on a daily product basis with the facility of unlimited withdrawals.

MCB Special Rupee Term Deposits

MCBs Special Rupee Term Deposits offer a very attractive long-term investment option with ease and convenience. Tenure options available are of 3 months, 6 months, 1 year, 3 years and 5 years. You can also avail a credit facility up to 75% of your total deposit.


The best protection for your valuables. Lockers of different capacities are available nationwide.

International remittances with a two-way messaging facility delivered at your door-step within 24 to 72 hours.

MCB Islamic Banking provides Riba Free and Shariah Compliant solutions to various customer segments in a growing number of cities. With the help of Shariah Specialists, lawyers and Professional Commercial Bankers, we have the best solutions to cater to your needs - the Islamic way.

Annual Report 2006

MCB provides the convenience of banking on the internet. Whether at office, home or traveling log on to and enjoy 24-hour access to all your accounts at MCB for the largest array of services such as Inter Bank Funds Transfer, Utility Bill Payments, Mobile Top-ups and many more.I N T E R N E T B A N K I N G


MCB Smart Savings Account gives you the optimum value you deserve. A savings account where not only you get a competitive return but also enjoy unlimited number of fringe benefits.


Theres no easier way to bank than the new enhanced MCB Call Center, which blends innovation and convenience to provide you banking services that go beyond your expectations. We make sure your banking needs are met 24/7 from the comfort of your very home because we at MCB, are just a call away! MCB Personal Loan is simply a clean cash facility extended for personal use. It offers a fixed installment loan that provides you access to cash instantly without any collateral. Financing available is up to 5 years for amount up to Rs. 1 million. A suite of Classic and Gold Credit Cards focusing primarily on providing convenience, safety, shopping pleasure and security giving a different feel to the world of Credit Cards through innovative features. These unique features include i-revolve which makes the variable mark-up rate available to you upon revolving and is the first of its kind in Pakistan. Other ad-ons include comprehensive insurance plans, installment plans, reward points, upfront loyalties and much more.

Banking at your finger tips. SMS anytime to get information regarding balance and mini statements.

The nations largest network of over 260 ATMs and still growing. Get 24-hour convenience of cash withdrawal, mini-statement, utility bill payment, funds transfer services and much more.

MCB on wheels. Now not only do you get a world class banking service but we make sure of your convenience. Our new classy mobile ATMs ensure that you are given a service closer to you.

MNET is an electronic hub for ATM sharing plus other touch points. Members include 16 local and foreign financial institutions enjoying ATM sharing and bureau services.

A secure instrument of payment providing Cash Free Convenience. It is more than just an ordinary Debit Card offering customers the peace of mind through unmatched and convenient services including easy bill payments, funds transfer, 24-hour cash withdrawal, balance inquiry and unlimited shopping pleasure.


MCB Business Sarmaya is a Running Finance facility against your residential property. It offers Running Finance up to 20 million with low mark-up and BTF facility at competitive rates.

Corporate Financing

Providing access to diversified financing options, including working capital loans, term loans, trade finance services and investment banking.

Instant FinancingGet a loan instantly at any MCB branch. Offering same day financing facility against liquid collateral at competitive pricing.

Rupee Travelers Cheque A safe and secure way to make payments nationwide. MCB Rupee Travelers Cheque, being the market leader, is the most widely accepted way to pay cash for travel-related purposes.

MCB Easy Bill Pay is an easy solution to pay your Utility and Mobile Phone bills. MCB ATM Card or MCB SmartCard holders can easily pay their bills through MCB ATMs, MCB Virtual-Internet Banking and MCB Call Centre with security and peace of mind. MCB Pyara Ghar is an ideal Home Finance product that lets you purchase, renovate or construct your home the way you have always wanted. Financing available is up to 20 years for amount up to Rs. 20 million. MCB CAR4U Auto Finance is your power move that gets you not only a car of your own choice but leads you to the best in life. It is affordable with competitive mark-up, flexible conditions, easy processing and above all, no hidden costs. MCB Sabzazar is an agricultural financing scheme for farmers that offers two financing plans, MCB Shadabi Plan for short-term financial needs and MCB Khushali Plan for long-term financial requirements.





Directors Report to MembersI am pleased to place before you, on behalf of the Board of Directors, the 59th annual report of your Bank for the year ending December 31, 2006. Economy Pakistan's economy turned in a strong performance for yet another year, recording real GDP growth of 6.6% for the fiscal year 2005-06. This was achieved due to the proactive economic policies of the Government, resulting in broad based advancement in the services sector supported by growth in Large Scale Manufacturing as well as expansion in trade and private investment. The telecom, banking, auto and retail sectors performed particularly well. The economy thus presented outstanding opportunities to businesses and consequently attracted substa