A Study on the Performance of Credits of Mutual Trust Bank PLC.

Abstract

This report titled, "A Study on the Performance of Credits of Mutual Trust Bank PLC,” presents a comprehensive analysis of the credit performance of Mutual Trust Bank PLC (MTB), covering the period from 2020 to 2023. The primary focus of the report is to assess the trends, challenges, and financial health of the bank, with specific emphasis on its industrial loan portfolio, capital structure, investment performance, deposit growth, non-performing loans (NPL), and key financial ratios. The analysis begins with a comparison of industrial loan performance, which shows a slight decline in overall loan advances in 2023 compared to 2022. While traditional sectors like agriculture and textiles saw reduced loan demands, there was notable growth in SMEs, consumer credit, and real estate, reflecting shifting market demands. The bank’s capital structure remains strong, with steady increases in both authorized and paid-up capital, positioning MTB for further growth. Investment activities also demonstrated consistent growth, particularly in 2023, reflecting the bank's strategic approach to diversify its portfolio. However, the interest income from loans fluctuated, with a significant drop in 2022 followed by a strong recovery in 2023. The analysis of deposits reveals a steady upward trend,highlighting the bank’s ability to attract and retain customer funds.