Abstract:
In July 2017, MCB Bank Limited made the merger with the NIB Bank Limited and
the post-merger quarter report of July to September 2017 has reported that the net
profit of MCB bank was Rs 5.44 billion which was down from 18.93% compared to
the last year quarter report ofsame period ofRs 6.71 billion due to the main factor of
lower capital gains. MCB Bank’s capital gain was at Rs 854 million with last year's
quarter gain of Rs 3.4 billion. The lower capital gain problem affected the profits of
MCB Bank Limited becoming controversial because the merger would bring '
in capital gain for the bank, The required analysis is from the year of 2016 pre-merger
period to the year of 2018 post-merger period to determine the loss Capital gain isjust
a short-term problem or a problem for the foreseeable future for MCB Bank. The
design and implementation for the report will be on the main key indicators of profits
and other incomes, asset, liabilities and expenses made by the MCB Bank limited
before merger in 2016 then after merger 2017 then in 2018. The problem for the MCB
Bank ofloss capital gain during the year 2017 was due to the demerger ofMCB bank
branches and they were sold at a low value that is why their capital gain were in loss.
In Post-merger period of 2018, the financials of the MCB Banks where in a better
shape as they were increase in the total assets and other income, but they were also
increase in total liabilities and decrease oftotal equity and minor decrease of its profit
after taxation. By doing analysis of the problem we conclude that the loss of capital
gain was only for a short period oftune and it is not a long-term foreseeable problem
for the Bank.
