SWOT ANALYSIS OF MCB In the following section both internal and external analyses of MCB are outlined: Strengths:

MCB is a well-established bank enjoying long history of over 66 years of experience and profitable operation. Delivering remarkable returns to stakeholders, sustainable performance, exceeding market and shareholder expectations. Providing value added services through operational expansion, geography and upgraded systems. Building a corporate culture of equality, trust and team spirit as a dedicated socially responsible organization MCB offers a convenient, fast and secure way of money transfer from anywhere in the world to Pakistan and all over Pakistan. First bank to achieve highest rating in Mobile Banking operations. The Bank has grown its asset base exuberantly over the last six years with asset footing increasing from Rs. 410B reported at December 31, 2007 to Rs. 766B at the end of current financial year, translating into an annual average increase of 11% for the last six years. With active participation in trade, MCB Bank has been able to improve its share in total market trade from 6.7% in 2007 to 7.61% in 2012. Overseas operations also continued to show stable growth in the depressed global conditions. Overseas operations in Sri Lanka, Bahrain and EPZ showed an increase in advances by 17%. MCB Bank has been able to post outstanding profitability numbers over the period of last six years as corroborated by the highest EPS and remarkable ROA. The annual pretax profitability numbers have grown from Rs. 21.3B in

2007 to Rs. 32.05B in 2012 MCB was the first privatized bank that gives it an edge over other nationalized banks as it can develop any strategy consistent with the demand of market and free from any political or bureaucratic influence. MCB is the market leader in introduction of e-banking and it has the largest ATM network in the country. Excellent branches appearance gives an edge to MCB over other banks. The branches are well furnished even in less developed areas where other banks branches give a poor view. Weaknesses: Though MCB is third largest bank in Pakistan, yet the fact remains that it is not market leader as HBL and NBP. Total assets of HBL and NBP are Rs. 333,751 millions and Rs. 415,088 millions respectively a at December 31st, 2001. While total assets of MCB are Rs. 187055 millions. Similar is the case with other financial strengths in deposits and advances. MCB does not enjoy the support of government as the other nationalized bank do. At the time of any financial difficulty, the other banks can easily seek support from government while MCB will have to rely on its own resources. One example of that came to the front when it started restructuring to streamline its operations and to achieve cost efficiencies, unlike other public sector banks, which received assistance from Asian Development Bank to the tune of US$ 250million, MCB carried out restructuring at its own initiative and without financial assistance from the government. The second example was the rejection of its offer to take over United Bank Ltd. Through its bid was the highest of Rs. 12 billion: almost double of the bids offered by other participant in the bidding. Service charges rates are very high.

 High number of uneducated staff at remote areas. Need to focus more Human Resource issues. Shortage of staff, which causes extra burden on existing staff leading to fatigue and boredom. Inexperienced hiring process which results in placement of the wrong person at the wrong seat. Demotivated staff. Opportunities: Changes in social patterns, population, and lifestyle changes and in economical. People now thinking to deposit their money in such a sound bank which are able to provide higher returns and secure transactions. Spend on their employees for better return. Be the innovator. Good financial position creating a good reputation for future advances and huge deposits. The MCB bank is entering in a growing industry and also going to further expand its branches internationally.

MCB may enhance its Rupee Travelers Cheques (RTCs) sales by searching for new market niches. It can introduce debit card system or may convert the existing ATM cards into a complete debit card. Be more competition friendly. THREATS Threat of new entrants is always there. The low discount rates are also negatively influencing the advances rates, which may affect the banks profits from the other side. Currently the competition for MCB is very high in terms of new technology integration, which can be a big threat to

move away clients. In trade financing the role of foreign banks is even more significant as approximately 30 percent of the total trade of the country is transacted through them. Major portion of the trade financing is for importers to establish business through banks that is covered by foreign banks through company policy. Employee retention is a very big challenge and in this situation of recession where employees are demotivated, good resource tends to lose interest due to over bridging